Bhubaneswar, Nov. 8: At last, there’s some movement on the Posco front.

The state government today dispatched a detailed status report on the controversial project to the Centre, while the South Korean steel major planned fresh development activities at its proposed plant site near Paradip.

The report, among other things, takes note of the downsizing of the project from 12 million tonnes per annum to eight million tonnes and reduction of land requirement from 4,004 acres to 2,700 acres.

The status report will be discussed by the ministerial-level joint committee formed in keeping with the Comprehensive Economic Partnership Agreement (CEPA) between India and South Korea.

The Republic of South Korea has been worried over the lack of progress of the project, which is arguably the biggest foreign direct investment in India.

Though the company signed a memorandum of agreement (MoU) with the state government for setting up a 12-million-tonnes-per-annum steel plant near Paradip in Jagatsinghpur district in 2005, work on the ground is yet to begin with a popular agitation raging against the project at the site.

Sources said that the status report sent to the Centre also pointed out that renewal of the MoU, which lapsed last year, was also pending. The signing of the tripartite agreement between the state government, Posco, the parent company, and Posco India Private Limited is expected to be formalised shortly.

“The chief minister will examine all aspects of project before he gives his nod for the renewal of the MoU,” said an official here, adding that the major issues which required close scrutiny were the iron ore swapping clause which was a part of the original agreement and the supply of water to the proposed plant site.

Though the Khurda collector has recommended the allotment of 17 acres of land near Tamando for the company’s corporate office in Bhubaneswar, Posco India continues to insist on 25 acres.

On the other hand, though the MoU is yet to be renewed, a special economic zone status for the project has been approved by the Centre, which has also accorded environmental clearance to the proposed captive port of the company at Jatadhari river mouth. However, environmentalists continue to object to the location of the port.

Company officials have been making rounds of the project area for the last two days with a view to launching peripheral development activities. Sources said that construction of roads covering a length about 12 kilometres would shortly get under way.

Contrary to apprehensions, the visit of company officials was welcomed by the people who appeared keen to know the details of the upcoming development project. They also discussed with the visting Posco officials the livelihood support package of the company for the persons who would be displaced.

“We had a successful visit. People warmly received us in places such as Gobindpur, Nuagaon and Nolia Sahi. We had faced resistance in the said places during our earlier visits, but this time there was a palpable change in the people’s attitude,” general manager, Posco (Odisha), S.N. Singh told The Telegraph.