News / 2 April 2012

Environmental permit for steel project in India suspended


Years of heavy protests from the local population, environmental organizations and experts have led to the suspension of the permit for the construction of a huge steel plant and port by the Korean steel company POSCO in an environmentally sensitive area in Orissa (India). This decision was taken by the Indian National Green Tribunal, a special court for the Environment.


The Court finds that 12 million tons of steel are to be produces on a yearly basis, while only 4 million tons of steel are mentioned in the environmental report. Insufficient attention was given to concerns about land acquisition, infrastructure, water use, pollution, impact on wetlands and mangrove forests in the area and risks due to cyclones that often occur in this area. The verdict of the judges shows that local people have rightly protested against this project.


Good news for the local population in Orissa, where POSCO was also planning several iron ore mines, roads and railways to the private port and the steel plant. Nature and environment in the area would be irreversibly damaged and tens of thousands of people would be displaced and lose their sources of income. Following the decision of the court the local resistance POSCO project committee (PPSS) demands in a statement that the project be completely cancelled.


At the end of January the POSCO affair was in the Dutch media because it turned out that Dutch pension fund ABP had invested in POSCO. Also because of this controversial project in Orissa, ABP is currently reconsidering this investment. Relevant new information on this project will be shared on this website.

For more background on this project see:

Article Both ENDS' website 26th of January

Mining Zone Peoples' Solidarity Group

Environmental Support Group India

Article Times of India



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