POSCO is setting up a humongous steel complex in the eastern Indian state of Orissa with the total investment of $12 billion.The project which was initiated in 2005 is supposed to get completed in 2016.But the huge industrial project which was hyped as generating lots of jobs for this impoverished state has generated huge controversy.The biggest problem for this project has been land acquisition which is going to displace thousands of poor tribals and farmers.This has led to massive protests leading to police firings resulting in lots of people dead.The company and the government have failed to win the trust of the displaced people as the rehabilitation and compensation has proven to be woefully inadequate.Now the project has run into another major problem with the federal government stopping the project completely .

Large Industrial Projects facing Opposition as they trample over People and Environmental Rights

India’s rapid economic growth has led to billions of dollars of profits for the major industrial groups.These conglomerates are further expanding into India’s hinterland exploiting the rich mineral resources.Recent power and mining projects have seen massive protests.A mega coal plant was stopped as corporate compliant police force fired on protesting villagers.Environmental NGOs like Greenpeace are also facing legal attacks as they publicize the ecological degradation.POSCO the South Korean Steel Giant which is the 3rd largest producer globally has found  to be violating the Forests  Act.The project will lead to destruction of over 2000 hectares of forests leading to annihilation of tribals dependent on these forests.The Union Environment Ministry has ordered a complete stop despite vehement opposition from the state government.The state chief minister Patnaik sent a strongly worded letter to the Prime Minister saying that the project will lead to prosperity.I think that it would be better if the Chief Minister was able to convince the displaced people that they would be adequately compensated over their lost livelihood.

Orissa stops land acquisition for POSCO project – Yahoo

Orissa officials Saturday stopped the land acquisition process for South Korean steel major POSCO’s $12 billion project in Jagatsinghpur district, two days after the union environment and forests ministry asked it to stop all work on the project.

‘We have stopped the land acquisition process today (Saturday) till an indefinite period. We are awaiting further instruction from the state government,’ a senior district official told IANS.

The central government Thursday asked the state government to stop all work, including land acquisition, related to the project due to violation of the Forest Rights Act (FRA).

The ministry said its decision was based on the recommendation of a joint panel of the environment and tribal affairs ministries.

According to the panel which visited the proposed site last month, land acquisition work related to the project which started July 27 is a violation of the FRA and the conditions laid down by the environment ministry on forest clearance.