This was mentioned in a status report submitted by the state government on the South Korean steel maker's proposed 12-MTPA mega-steel plant near Paradip in Jagatsinghpur district, official sources said.
The Union ministry of commerce and industry had sought a status report on the biggest FDI project in the state ahead of the meeting of the joint committee at the ministerial level to review the implementation and application of the provision of India-Korea CEPA (Comprehensive Economic Partnership Agreement), sources said.
"Due to law and order problem at the project site and delay in approval for forest diversion from Union ministry of environment and forests, no tangible progress was made in implementing the project. The validity of the MoU between the state government and Posco-India expired from June 21, 2010," a joint secretary-level officer wrote to the ministry.
While according approval for the forest diversion for 2,959 acres of forest land, the MoEF did not appreciate the swapping clause of the lapsed MoU, the state government pointed out.
The company applied for revalidation of the MoU before its expiry. However, the state-owned IPICOL has recommended for extension of the validity of the MoU for six more years, the state maintained.
Meanwhile, the company was optimistic about getting 2,700 acres to begin initial works by end of the year, the sources said.
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