Released November 05, 2010 | NEW DELHI, INDIA
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Researched by Industrial Info Resources (Sugar Land, Texas)--Rejuvenated by a meeting between India's Prime Minister Manmohan Singh and South Korean President Lee Myung-Bak and with the Orissa state government's moving India's highest court in favor of POSCO (NYSE:PKX) (Pohang, South Korea), the South Korean steel giant has lashed out at India's Ministry of Environment and Forests (MoEF), as well as members of the expert committee that said the company had violated environmental rules for its proposed steel mill in Orissa. For additional information, see November 2, 2010, article - POSCO's $12 Billion Steel Project in Orissa Gets Negative Report from Committee.
The company had signed a pact with the Orissa government in 2005 to set up the $12 billion mega-steel project near the port town of Paradip by 2016.
The company needed some 4,000 acres of mostly government land, and 2,900 acres of forest area. But thousands of people have rallied against the project, saying it will displace betel leaf farmers, even as the state government says it will bring prosperity and jobs to in impoverished region.
POSCO has strongly criticized the MoEF committee, stating that it never "violated the rules and regulations." POSCO expects to obtain permission to set up the 12 million-ton integrated steel mill in Orissa.
In a written representation, POSCO countered the viewpoint of dissenting members of the MoEF's Expert Appraisal Committee who had alleged that the company's infringement of the prescribed standards governing the environmental impact assessment (EIA) was a statutory violation.
The company strongly denied any violation of the provisions of India's Environment Protection Act of 1986, stating: "Had there been any violation of the regulatory provisions, POSCO-India should have been informed by concerned authorities. Hence the conclusion drawn by the dissident members was untenable."
The dissenting members had suggested that, considering the scale of the project--which matches the capacity of India's state-owned steel mills in Bokaro, Rourkela, Durgapur and Bhilai, the MoEF should have constituted a comprehensive EIA.
But POSCO pointed out that the ministry's notification called for separate EIAs for different sectors such as port, infrastructure and steel mills, and that a comprehensive EIA was not needed.
It also drew attention to the fact that a comprehensive EIAs for the plant, prepared by consultant M N Dastur, and the National Institute of Oceanography's (NIO) EIA for the proposed captive port had already been completed.
POSCO further stated, "The expert committees of the regulating authorities at the state and the Centre had a threadbare appraisal of the EIA report before issuing the No Objection Certificate for the project. Thus POSCO has not violated or hidden any facts before the authorities as required by them under the prevailing rules."
Countering the suggestion of the expert committee that a study should have been undertaken to examine the impact of the captive port on the existing Paradip Port, Posco said that a model study undertaken by the Danish Hydraulic Institute and Consulting Engineering Services had ruled out any impact on the Paradip Port.
The company said, "Besides NIO, Goa has extensively studied the impact of dredging and disposal of silt and sand, and it has been confirmed that there would be no adverse effect on the port."
The dissenting members of the committee had said, "The expert committee has failed to apply its mind to the objections raised by various authorities and the public, and also for failing to record any reasons of accepting or rejecting the objections and instead giving clearance, which makes a mockery of rule of law and procedural safeguards."
POSCO said that the public hearing was conducted by the Jagatsinghpur district administration, and the company had replied to issues raised there and satisfied the administration.
The company also pointed out that officials of the Orissa State Pollution Control Board played video recordings of the proceedings of the public hearing before the expert committee.
The company claimed that despite the lack of any infrastructural facilities, it was willing to take the risk of setting up the proposed steel mill in Orissa.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The company had signed a pact with the Orissa government in 2005 to set up the $12 billion mega-steel project near the port town of Paradip by 2016.
The company needed some 4,000 acres of mostly government land, and 2,900 acres of forest area. But thousands of people have rallied against the project, saying it will displace betel leaf farmers, even as the state government says it will bring prosperity and jobs to in impoverished region.
POSCO has strongly criticized the MoEF committee, stating that it never "violated the rules and regulations." POSCO expects to obtain permission to set up the 12 million-ton integrated steel mill in Orissa.
In a written representation, POSCO countered the viewpoint of dissenting members of the MoEF's Expert Appraisal Committee who had alleged that the company's infringement of the prescribed standards governing the environmental impact assessment (EIA) was a statutory violation.
The company strongly denied any violation of the provisions of India's Environment Protection Act of 1986, stating: "Had there been any violation of the regulatory provisions, POSCO-India should have been informed by concerned authorities. Hence the conclusion drawn by the dissident members was untenable."
The dissenting members had suggested that, considering the scale of the project--which matches the capacity of India's state-owned steel mills in Bokaro, Rourkela, Durgapur and Bhilai, the MoEF should have constituted a comprehensive EIA.
But POSCO pointed out that the ministry's notification called for separate EIAs for different sectors such as port, infrastructure and steel mills, and that a comprehensive EIA was not needed.
It also drew attention to the fact that a comprehensive EIAs for the plant, prepared by consultant M N Dastur, and the National Institute of Oceanography's (NIO) EIA for the proposed captive port had already been completed.
POSCO further stated, "The expert committees of the regulating authorities at the state and the Centre had a threadbare appraisal of the EIA report before issuing the No Objection Certificate for the project. Thus POSCO has not violated or hidden any facts before the authorities as required by them under the prevailing rules."
Countering the suggestion of the expert committee that a study should have been undertaken to examine the impact of the captive port on the existing Paradip Port, Posco said that a model study undertaken by the Danish Hydraulic Institute and Consulting Engineering Services had ruled out any impact on the Paradip Port.
The company said, "Besides NIO, Goa has extensively studied the impact of dredging and disposal of silt and sand, and it has been confirmed that there would be no adverse effect on the port."
The dissenting members of the committee had said, "The expert committee has failed to apply its mind to the objections raised by various authorities and the public, and also for failing to record any reasons of accepting or rejecting the objections and instead giving clearance, which makes a mockery of rule of law and procedural safeguards."
POSCO said that the public hearing was conducted by the Jagatsinghpur district administration, and the company had replied to issues raised there and satisfied the administration.
The company also pointed out that officials of the Orissa State Pollution Control Board played video recordings of the proceedings of the public hearing before the expert committee.
The company claimed that despite the lack of any infrastructural facilities, it was willing to take the risk of setting up the proposed steel mill in Orissa.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
