Odisha government asks Posco to pay land premium soon

The Odisha government on Saturday asked South Korean steel major Posco to make outstanding payment of about Rs 50 crore towards land premium and Rs 18 crore towards net present value for forest land diversion.

"Posco has not yet made full payment towards land premium. The company has been told to make payment soon," Industries Minister Debi Prasad Mishra told reporters amid reports that state owned Industrial Infrastructure Development Corporation (IDCO) threatened to take back the land from the steel major if it failed to pay the required amount.

IDCO, sources in it said, had already handed over 1,703 acres to Posco against its requirement of 2,700 acre for setting up a 8 mtpa mega steel facility near Paradip.

Though Posco had paid Rs 30 crore as advance for land acquisition, it required to pay another Rs 54.22 crore, the sources said.

The steel major has sought details from IDCO of Rs 30 crore it deposited as advance. The amount was provided for betel vine demolition, deposit for development purposes, police base camp infrastructure, trench cutting and construction of road along with compensation for land acquired in nine villages.

The company also wanted to know about Rs 13.52 crore deposited towards acquisition of private land for the purpose. The IDCO has not acquired any private land, the sources said.