The South Korean steel major Posco, facing stiff opposition from the local people for acquisition of land for its 12-million-tonne steel project in Orissa, may have to directly negotiate with the project affected villagers.
"The government of India requested the Orissa government to expedite the process of land acquisition for Posco," said Chief Minister Naveen Patnaik after his meeting with Prime Minister Manmohan Singh in New Delhi on Thursday.
"However, the government clarified that Posco may have to negotiate with the land-losers for acquisition of private land if it wants a special economic zone status," he added.
It may be noted that Posco has been granted "in-principle" SEZ status by the board of approval of the commerce ministry.
The empowered group of ministers had recently recommended limiting the role of state governments in land acquisition for SEZs and favoured direct negotiation between the industry and the affected people in this regard. The new rehabilitation and resettlement policy of the Orissa government also espouses a similar philosophy.
However, the CM pointed out that the state government would facilitate the process of direct negotiation between the company and the land losers. The meeting with the PM was held on the latter's invitation to review the progress of the project.
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