After waiting for four years to get land for its over Rs 30,000-crore six-million-tonne-a-year steel project in Karnataka’s Gadag district, Korean steelmaker Posco has decided to scrap the project.
Protests from local and religious communities have stalled the land acquisition process that forced the company to move out of the project. It had faced similar issues for its project in Odisha, which now seems to be on track. A decision on the project site is yet to be taken on its joint venture with SAIL.
A Posco official told
Approval given
Karnataka gave in-principle approval to Posco’s business proposal in January 2010. Post this, the company signed a memorandum of understanding (MoU) with the State Government in June 2010. The project was proposed at Gadag district, which is near iron-ore rich Bellary district.
When contacted, M.N. Vidyashankar, Principal Secretary to the Karnataka Government (Commerce and Industries) said Posco had decided to pull out of the project soon after the MoU was signed. “They are now discussing if any alternate site may be made available,” he told Business Line.
However, according to Posco, the project was progressing till former Karnataka Chief Minister B.S. Yeddyurappa ordered to stop land acquisition work since July 15, 2011.
After the hearing on land acquisition, the next step is measurement of land, which requires the consent of at least 70 per cent of local residents. KIADB already has about 85 per cent consent from residents; however, due to the opposition from the local religious leader and some villagers, the land acquisition was suspended.
The Posco official said: “We are not pulling out completely from the State. If the State offers a new business plan, we are open to discussion.”
Our Bangalore Bureau adds: Posco has sought refund of Rs 60 crore deposited with the Karnataka Government for land acquisition for its Rs 32,000-crore steel plant at Halligudi village in Mundargai taluk of Gadag district.
A senior State Government officer said: “Since 2011, when the then BJP government instructed the Industries and Commerce Department to go slow on land acquisition, no development has taken place.” “After waiting for two years, the company has asked the Government to refund Rs 60 crore deposited with us for land acquisition,” he added.
The then BJP Government had signed an MoU with Posco and had identified 3,400 acres spread across three taluks in Gadag district.
siddhartha.s@thehindu.co.in