Bhubaneswar, May 7 UNI | 3 months ago

Odisha government has renewed allocation of water to the South Korean Steel major POSCO for its proposed mega steel plant near Paradip in Jagatsinghpur district.

Odisha Water Resources Secretary Suresh Mohapatra today said this was for the third time in a row the government had renewed the water allocation for the 12MTPA integrated steel plant since the company signed an MoU in 2005 to set up the plant at an investment of Rs 51,000 crore, considered to be the biggest FDI in the country.

The allocation was made with 35 conditions for a period of three years, Mr Mohatra said adding that earlier in principle allocation of water for the project was made in 2006 and 2010.

The Water resources Secretary said it was only in principle allocation of water and no agreement was signed between the company and the government.

Mr Mohapatra said as per the decision, the company would be provided water from the Hansua for its construction work and from the Mahanadi river for operating its project.

The company had applied for 28.6 cusecs of water per day for its first phase and equal quantity of water for the second phase of production and accordingly deposited around Rs 80 lakh towards its cost. Earlier the company had applied for 125 cusecs of water.

Mr Mohapatra said as per the decision water from the Hansua would be provided to the company for its construction activities and water from the Jobra barrage in Mahanadi would be made available to the company to run the plant.

The company, he said, has planned to start the construction work of the plant from 2016 and start commercial production in 2018 in the first phase.

The second phase production of the plant would start from 2021, he said.

(Posted on 08-05-2014)