Paradip / Bhubaneswar, April 6: The big-ticket Posco steel project near Paradip has received a boost with 1,703 acres being transferred in favour of the South Korean company by the state-run Industrial Infrastructure Development Corporation (Idco). This includes 548 acres handed over to the steel-maker last year.

The company, which at one stage required 4,004 acres for its proposed steel plant, has been unable to begin work because of land acquisition problems. Last month, South Korean ambassador Lee Joon-Gyu had discussed the issue with chief minister Naveen Patnaik in Bhubaneswar.

The company has been forced to scale down the project size from 12MTPA to 8MTPA and land requirement from 4,004 acres to 2,700 acres. It decided not to acquire land in Dhinkia and Patana villages where the resistance movement to the plant is at its peak. “To meet with the company’s land requirement, 1,703 acres have recently been transferred in favour of Posco-India,” said Idco general manager Sangram Mahapatra.

About 1,300 acres of the transferred land comes under forest category, while the rest is revenue land owned by the government. Idco is still in possession of about 400 acres that are required for the steel venture. Around 600 acres more would be required for the project.

I.G. Lee, general manager (corporate affairs), Posco-India, told The Telegraph: “We are happy that the government has transferred the land. But, the company is yet to take physical possession of it. The company is intent on setting up plant in Jagatsinghpur. Once the company takes possession of land, ground-levelling, trench-cutting, boundary wall-building and ancillary project related works will be accelerated. It would take at least two years to prepare the ground for beginning construction.”

The South Korean steel-maker has already launched periphery development work with road projects to connect villages in the project area. Three road projects covering about 12km will shortly get under way. A road project has already commenced near Gobindpur village, said an official.

Nonetheless, resistance to the project continues. Last month, women had launched a dharna in the area demanding withdrawal of security forces deployed in the wake of violence in which three people were killed.

Commenting on the land transfer to Posco, Abhaya Sahu, Posco Pratirodh Sangram Samity president, said: “We are least bothered about what the government does. Everybody is aware that it is acting as a corporate agent and its stand is always detrimental to interest of the people. Our movement against the steel project will continue till the project is relocated.”