South Korean POSCO’s plan for a $12 billion steel mill has been approved by the Indian environment ministry.
The approval is expected to provide a much-needed boost for the foreign investment climate after several setbacks for big ticket industrial projects.
From in.finance.yahoo.com:
The long-delayed clearance for India’s biggest foreign direct investment — as long as the company meets a series of environmental standards — follows a year in which Environment Minister Jairam Ramesh has blocked several projects, raising criticism he was jeapordising India’s growth story.
“Undoubtedly projects such as that of POSCO have considerable economic, technological and strategic significance for the country,” the statement said. “At the same time, laws on environment and forests must be implemented seriously.”
The mill in Orissa has been delayed by criticism it would ruin lives of thousands of poverty-stricken people, who say the plant will disrupt their betel leaf plantations and forest-based livelihoods.
India, one of the world’s fastest growing major economies, needs foreign capital to boost infrastructure and allow its economy to grow at near double digits. But projects have met with protests from local farmers in this densely-populated country.
A government panel had earlier remarked there were no ecological concerns over the plant and the final decision was with Environment Minister Jairam Ramesh.
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