The Orissa government has said that it fully supports the multi-billion steel project from global steel maker Posco, despite opposition from local people.
Posco's $12 billion (Rs 54,000 crore) steel project Orissa's Jagatsinghpur district has been controversial after local residents prevented the company officials from entering the area. Posco's proposed steel plant in Orissa is the biggest foreign direct investment in the country.
But despite opposition from local residents, Orissa Chief Minister Naveen Patnaik says his government is committed to help the company carry out the project.
"The Posco steel project, which is the largest FDI investment ever in India, will reach fruition despite the delay," Patnaik said.
The Chief Minister said the state government now has an excellent rehabilitation policy which is both practical and humane. "The policy
will be implemented in letter and spirit to address people's concerns," Patnaik pointed out.
Posco bought 1,135 acres of land in Jagatsinghpur district from the state government in September 2006.
Though the company had planned to start civil construction works for the plant from April, 2007, opposition from local residents has delayed the project.
The events in Kalinga Nagar where 12 tribals were killed in police firing while protesting over the construction of boundary wall of the Tata steel project and later events in Singur and Nandigram have made the Orissa government wary of using force.
State government officials said they are talking of using persuasive methods to evict the people from the Posco project site.
Soo-Jung Kim, public relations manager of Posco India said the company is pursuing the project in Orissa with utmost seriousness.