Posco sets up foundation for social welfare work

Bhubaneswar, Nov 8 : South Korean steel major Posco, which is setting up a USD 12-billion steel plant in Orissa - the largest foreign direct investment in India - has formed a foundation to carry out various social welfare programmes in the state, the company said Sunday.

The foundation follows the Sep 15 meeting between Chief Minister Naveen Patnaik and Posco chief executive Joon-Yang Chung, where the latter had hinted at creating policies to support people living near the project site.

"The Posco Foundation has now been registered in Orissa to fulfil the company's commitment to social responsibilities", the company said in a statement.

"The foundation shall initially focus on the social development of people in and around the proposed project site area in Jagatsinghpur and Sundergarh districts and promote a wide range of activities," it added.

These activities provided nutrition for school children, vocational training and healthcare for vulnerable sections of society, the company said.

Posco, one of the world's biggest steel makers, signed a deal with the Orissa government in June 2005 to set up a $12-billion plant near the port town of Paradip in Jagatsinghpur, some 100 km from here, by 2016.

The state government in January had recommended to the central government that the company be granted mining lease over an area of 2,500 hectares in Sundergarh district.

While the steel project has not make much headway due to local opposition to it, the company says it expected to complete land acquisition by the end of this year and begin construction early next year.

Its mining project is also facing legal trouble.