A betel farmer at the Posco project site

Paradip, Jan. 18: The state government has started process to transfer the required land for Posco steel project in Jagatsinghpur district.

The company has been asked to deposit Rs 54.22 crore with the government-run Industrial Infrastructure Development Corporation (Idco), the agency that has acquired land for the venture. Following the Orissa Industrial Policy, 2002, rules, the company has been told to release the land premium payment in favour of Idco for leasing out of the land, said an official.

“We have asked the company to pay us the land premium for leasing the 2,700 acres earmarked for the project,” Idco general manager Sangram Mahapatra said.

Posco required 4,004 acres to set up its proposed 12 million-tonne-per-annum (MTPA) greenfield steel project for Rs 52,000 crore. However, due to people’s resistance, the company scaled down its requirement to 2,700 acres. The project was also downsized from 12MTPA to 8MTPA. “Idco has acquired 2,750 acres, of which, 2,700 acres would be leased out to Posco. The company would have to pay us Rs 54.22 crore for the lease deed. The surplus 50 acres will remain under Idco’s ownership. The said patch of land would be used for ancillary industrial infrastructure establishment,” he said.

Posco has to pay land charge at the rate of Rs 17 lakh per acre, premium payment of Rs 25,000 per acre, ground rent cess in favour of Erasama tehsil amounting to 1 per cent of the total valuation of the land and 10 per cent incidental charge of the market price, said an official.

Jagatsinghpur collector Satya Kumar Mallick said: “The administration has transferred the land to Idco, which is going to lease out the land to the steel company.”