Snags in Posco’s India plan

Posco, the world’s fourth-biggest steelmaker, expects a $12 billion project to build a steel plant in India will go ahead as planned as it obtains land for its largest overseas investment amid opposition by residents.
“We’ve secured most of the needed land,” Ko Min-jin, a spokeswoman at Posco, said yesterday. “Some residents are against the land purchases, but we continue to persuade them, and we expect the timetable for the project to go ahead intact.”
Arcelor Mittal, the world’s biggest steelmaker, and Posco have said they plan to spend $21 billion on plants in India, which has the world’s fifth-largest iron ore reserves. Posco’s proposed 12 million metric tons-a-year plant in Orissa, would be India’s largest foreign direct investment.
The company planned to purchase land and start ground work this year, which Ko said was still expected to occur. Posco estimated it needs 4,000 acres (1,619 hectares) for the venture. It won’t begin building until it has 3,000 acres, Jeong Tae-hyun, deputy managing director, said Feb. 12.
The company said Feb. 23 it may acquire the land needed by October. Construction of the project, talks for which began in August 2004, was earlier expected to begin last month.
Three officials at Posco’s India unit who visited Gobindapur village to negotiate with farmers were released safely after being detained by activists opposing the venture, Ko said Saturday.