File picture of Posco site

Bhubaneswar, April 21: The Orissa government today begun the process of ascertaining how South Korean steel giant Posco could have spent Rs 3,000 crore on its proposed 12-million-tonne steel plant near Paradip.

Reacting to a report which appeared on The Telegraph on April 20, steel and mines minister Raghunath Mohanty said: “I, too, wonder how they have submitted a report to the state government stating that the they have so far invested Rs 3,000 crore.”

Later, Mohanty asked the nodal officer for the Posco project to submit a detailed report to the government on the investments in the project. On the other hand, officials said the company would not disclose to the government the details of its expenditure.

Industries secretary T. Ramachandru appeared flabbergasted after being informed that the company had claimed investment of Rs 3,000 crore. “I don’t know. Please don’t ask me about it. There is a nodal department which is dealing with it,” Ramachandru said.

Expressing surprise, officials said such massive expenditure by the company should have been visible on the ground. “The company does not even appear to spend much on advertisements. We wonder how so much money was spent. With this kind of investment, a 400-megawatt power plant could have been set up,” said an official of the steel and mines and industries department, who did not wish to be named.

The company, according to the available information, has disbursed Rs 1.36 crore towards land acquisition. The amount was disbursed by the Industrial Development Corporation (IDCO) of Orissa on behalf of the company to 97 people for the acquisition of betel vines in Gadakujang gram Panchayat for the Rs 52,000 crore project.

The state government has also leased 651 acre of litigation and encroachment-fee revenue land to Posco India at the rate of Rs 25,000 per acre. “However, the company must have spent only a little over Rs. 1.62 crore on this account,” said an official. Thus the total expenditure on land acquisition can be pegged around Rs 3 crore.

Posco India Limited had signed an MoU with the Orissa government on June 22, 2005 to set up a steel plant over an area of 4,004 acres. However due to stiff opposition by Posco Pratirodha Sangram Samiti, a people’s outfit, the state government has not able to acquire the land.

Sources said Posco India has so far provided direct employment to 53 persons and indirect employment to 20.

ORIGINAL

Subhashish Mohanty

Bhubaneswar, April 21: The Orissa government today begun the process of ascertaining how the South Korean steel giant Posco could have spent Rs 3000 crore on its proposed 12-million tonne steel plant near Paradip.

Steel and Mines Minister Raghunath Mohanty said, “ I, too, wonder how they have submitted a report to the state government stating that the they have so far invested Rs 3000 crore.” He was reacting to a report which appeared in The Telegraph on April 20.

Mohanty later asked the nodal officer for the Posco project to submit a detailed report to the government on the investments in the project. On the other hand, officials said the company would not disclose to the government the details of its expenditure.

Industries secretary T. Ramachandru appeared flabbergasted after being informed that the company had claimed investment of Rs 3000 crore. “ I don’t know. Please don’t ask me about it. There is a nodal department which is dealing with it,” Ramachandru remarked.

Expressing surprise, officials said such massive expenditure by the company should have been visible on the ground. “ The company does not even appear to spent much on advertisements. We wonder how so much money was spent. With this kind of investment a 400-megawatt power plant could have been set up,” said officials of the Steel and Mines and Industries department who were not willing to be quoted.

The company, according to the available information, has disbursed Rs 1.36 crore towards land acquisition. The amount was disbursed by the Industrial Development Corporation (IDCO) of Orissa on behalf of the company to 97 people for the acquisition of betel vines in Gadakujang gram Panchayat for the Rs.52000 crore project.

The State government has also leased 651 acre of litigation and encroachment-fee revenue land to the Posco- India at the rate of Rs 25,000 per acre. “ However, the company must have spent only a little over Rs. 1.62 crore on this account,” said an officials. Thus the total expenditure on land acquisition can be pegged around Rs 3 crore.

The Posco India Limited had signed an MoU with the State government on June 22, 2005 to set up a steel plant in an area of 4004 acres. However due to the stiff opposition by the Posco Pratirodha Sangram Samiti, a people’s outfit, the state government has not able to acquire the land.

Sources said Posco India has so far provided direct employment to 53 persons and indirect employment to 20.