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Majority Report of the Committee Constituted to ... - Forest Rights Act

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<strong>Majority</strong> <strong>Report</strong> <strong>of</strong> <strong>the</strong> POSCO Enquiry <strong>Committee</strong><br />

(Dr. Urmila Pingle, Dr. Devendra Pandey, Dr. V. Suresh)<br />

Executive Summary<br />

1. The Government <strong>of</strong> Orissa and Pohang Steel Company (POSCO), Republic <strong>of</strong><br />

Korea signed a Memorandum <strong>of</strong> Understanding (MOU) on June 22, 2005 for<br />

setting up an Integrated Steel Plant <strong>of</strong> a <strong>to</strong>tal capacity <strong>of</strong> 12 million <strong>to</strong>nnes per<br />

annum in Orissa at Paradeep, in Jagatsinghpur district. By establishing an Indian<br />

Company as POSCO- India, it would develop and operate <strong>the</strong> Steel Plant <strong>to</strong><br />

produce a <strong>to</strong>tal <strong>of</strong> 12 MT starting 4MT in first Phase with a proposed investment<br />

<strong>of</strong> Rs 51,000 crores or 12 billion US$. The integrated steel plant includes captive<br />

power plant and a captive minor port. The plant would be located on <strong>the</strong><br />

northwestern bank <strong>of</strong> <strong>the</strong> Jatadharmohan river creek 12 km south <strong>of</strong> <strong>the</strong> Paradeep<br />

Port requiring a <strong>to</strong>tal <strong>of</strong> 1620.496 hectares <strong>of</strong> land <strong>of</strong> which 1253.225 hectares is<br />

forest land and would affect 8 villages <strong>of</strong> three Gram Panchayats <strong>of</strong> Erasama<br />

block, Kujang Tahsil. The MOU also envisaged that <strong>the</strong> company would develop<br />

and operate , (i) Mining Project in areas allocated by <strong>the</strong> government <strong>of</strong> Orissa /<br />

Government <strong>of</strong> India (ii) Transportation Project which includes a dedicated<br />

railway line, road and Port (iii) Integrated <strong>to</strong>wnship and (iv) Water Supply<br />

infrastructure or <strong>the</strong> Water Project<br />

2. After <strong>the</strong> MOU, POSCO-India commissioned studies on rapid environment impact<br />

assessment (REIA) <strong>of</strong> steel plant (only for 4 MT) along with captive power plant<br />

and separately for captive minor port. The studies were completed in two-three<br />

months along with survey for demarcating CRZ areas during August <strong>to</strong> November<br />

2005 and got environment management plan (EMP) prepared through M/s M.N.<br />

Dastur & Company (P) ltd. The Ministry <strong>of</strong> Environment and <strong>Forest</strong>s,<br />

Government <strong>of</strong> India gave CRZ and Environment Clearance for <strong>the</strong> Captive Minor<br />

Port on 15 may 2007 and that <strong>of</strong> Integrated Steel Plant with Captive Power Plant<br />

on 19 July 2007. The Ministry also granted in-principle (stage I) clearance for<br />

diverting 1253.225 ha forest land for <strong>the</strong> project on 19 September 2008 under<br />

<strong>Forest</strong> Conservation (FC) <strong>Act</strong> 1980 stipulating a set <strong>of</strong> conditions for compliance<br />

before final clearance.<br />

3. In <strong>the</strong> mean time <strong>Forest</strong> <strong>Rights</strong> <strong>Act</strong> 2006 for <strong>the</strong> Scheduled Tribes (ST) and o<strong>the</strong>r<br />

Traditional <strong>Forest</strong> Dwellers (OTFD) became operational from January 2008. The<br />

Ministry <strong>of</strong> Environment and <strong>Forest</strong>s (MoEF) issued circular on 3 Aug 2009 <strong>to</strong> all<br />

<strong>the</strong> States/UT mandating compliance with <strong>Forest</strong> <strong>Rights</strong> <strong>Act</strong> (FRA) 2006 where<br />

proposals for diverting forest land for non-forestry purpose are processed. State

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