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New Delhi (AFP) Oct 18, 2010 The majority of an Indian government panel probing the environmental impact of a 12-billion-dollar South Korean steel plant said Monday that clearances for the project should be scrapped. Steel giant POSCO wants to build the plant in the eastern state of Orissa, in what would be India's largest foreign investment project since the country launched market reforms in 1991. Three of the four-member panel cited "many serious lapses and illegalities" in assessing the plant's environmental impact, including "serious violations" in the public hearing process with many communities being left out. "The committee therefore strongly recommends that the Environmental Clearances... be immediately revoked," their report said. The head of the panel, Meena Gupta, delivered a separate report, which stressed the need for a more comprehensive impact assessment but dissented from the idea of revoking the existing clearances immediately. The panel had been tasked with reviewing the POSCO's compliance with environmental laws and rehabilitation and resettlement provisions for local tribal people. Environment Minister Jairam Ramesh, who will make the final decision on the plant's future, said the Forest Advisory Committee would meet on October 25 to examine both the panel reports and give its recommendations. "I have not taken any view on the matter and will wait for the findings of the committee," he told reporters. Three months ago the environment ministry ordered Orissa state government to ensure work stopped at the site after a previous study highlighted alleged irregularities in implementing environmental laws. India's rapid industrial development often comes up against environmental concerns and local tribesmen as vast expanses of mineral wealth lie in parts of the country that are home to indigenous tribes. In August, Ramesh struck down a bauxite mining project by British-based resource giant Vedanta, saying the company had shown "shocking" and "blatant" disregard for protected tribal groups. Gupta wrote in her report that it was "important to point out that POSCO and Vedanta are very different projects and operate in different environs and circumstances". She added that the complex issues involved with the POSCO proposals meant committee members had "formed very different impressions and came to very different conclusions". The state government of Orissa and POSCO signed a deal in 2005 but construction stalled due to an ongoing dispute with villagers who are worried about losing their land and livelihoods.
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