Faced with problems in acquiring land at the site of its proposed Rs 51,000 crore (Rs 510 billion) steel plant in Orissa, South Korean steel giant will slightly alter its location, Mines Minister B K Handique said on Tuesday.

"Posco is facing problem of land (acquisition). Now recently they came to me. They have decided to move to a different place," he told reporters on the sidelines of conference in New Delhi.

Later, the minister's office said that Posco will not move out of Orissa -- where the firm is awaiting iron ore leases -- but they may be moving to a nearby location.

When contacted Posco India vice-president Vikas Sharan said, "There were never any plans to move from the site area in the past nor there are any such plans now. We are committed to the Orissa project."

Meanwhile speaking in Orissa, a Posco official admitted that some villagers at the proposed plant site are still opposed to the project, and efforts are on to win them over.

The South Korean steel maker has proposed setting up an integrated steel project in Orissa with a capacity of 12 million tonne per annum.