Burial for Posco's Gadag Steel Plant Dream
From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Jul 25: South Korean steel giant Posco's plans to set up a Rs 32,336 crore steel plant at Halligudi in Gadag district has been given an official burial.
"The Posco's steel plant is a closed chapter in the Gadag district," said Karnataka's Women and Child Development Minister C C Patil, who is also the Gadag district in-charge minister.
He declared: ''The project is dropped and it will not be established in Gadag."
Speaking to reporters on Monday, Patil said the Gadag district's development would be adversely affected on account of dropping of the project. The Opposition parties, particularly the Congress, were responsible for the Government's decision.
A large number of farmers have supported the project and were ready to given their lands. But the Congress leaders instigated farmers to launch protests against the mega steel project, Patil claimed.
Karnataka Industrial Area Development Board (KIADB) had issued a preliminary notification for acquiring 3382 acres of farmland at Halligudi for the steel plant. But farmers, seers and opposition parties had opposed the land acquisition. A few farmers had expressed their readiness to handover lands if they were paid higher compensation, the minister said.
Posco India Private Ltd had signed a memorandum of understanding (MoU) with the government to set up a finex steel plant with a capacity of six million tonnes per annum (6 mtpa) and a 400 MW captive power unit at the June 2010 Global Investors Meet (GIM).
The minister said the Congress leaders, who have no political base in the district, led the agitation against the project to get maximum political mileage and gain farmers' sympathy. The Congress lost to the BJP in assembly, Lok Sabha and ZP elections in the district in the last few years, he said.
Asked if the project would be the relocated, Patil said he was unaware of the relocation. However, the the Government has taken a firm decision not to set up the project in the Gadag district, Patil added.