The Odisha government has decided to resume the land acquisition process for South African steelmaker Posco’s project, which was stalled indefinitely in June last year following protests by villagers and Left leaders.

The decision was taken in a meeting convened by Chief Secretary B K Patnaik on 16 August, where officials of the Central Revenue Division Commissioner, Posco-India, Jagatsinghpur district administration and Industrial Infrastructure Development Corporation of Odisha (Idco) were present.

Secondary makers have to invest more on technology and inputs, even as demand for their products is down, hitting their margins

The mandatory norms pertaining to steel product quality, to take effect next month in a central government order, will affect the profitability of semi-finished product makers. They’d have to make the changes at extra cost amid poor demand. The Steel and Steel Products (Quality Control) Second Order, 2012, issued in March, says long and flat steel makers need a Bureau of Indian Standards (BIS) licence from September 12. So do foreign suppliers of these goods.

State-run miner Odisha Mining Corporation (OMC) has signed pacts with steel makers Adhunik Metaliks and Rexon Strips to supply iron ore for next five years from its Kurmitar Pahar mines in Khandadhar area in Koira mining circle of Sundergarh district.

“We have entered into two long-term sales agreements with two companies-Adhunik Metaliks and Rexon Strips. These companies will get one million tonne iron ore every year for a period of five year from Kurmitar mine (Khandadhar),” said Saswat Mishra, chairman-cum-managing director of OMC.

The state government has decided that Posco India will have to pay the same price for rehabilitation colony land as it has paid for the project area, following a complaint raised by the National Human Rights Commission (NHRC).

“Steps will be taken to request Posco India to pay equivalent compensation as paid in the case of rate of private land coming within the project area,” the government said while filing a compliance report on the NHRC complaint regarding the same issue.