INDIA ALLOWS CONTROVERSIAL STEEL PROJECT

02/28/2011

Environment minister Jairam Ramesh has fallen under heavy criticism from environmentalists and tribal rights activists after granting clearance to the Korean giant Pohang Iron and Steel Company to build a $12 billion steel plant in Orissa. The 12 million ton capacity plant was approved in 2007, but faced project-stalling opposition from tribal populations in possession of the necessary lands and from environmental groups concerned about the effects of the plant. The project will increase the carbon footprint of the nation, despite the government's goals to cut emissions by 20 to 25% of 2005 levels by 2020. Ramesh's Ministry of Environment and Forests has responded to criticism by imposing 18 environment-related conditions for building, including a new environmental impact assessment (EIA). This is due in part to the original EIA's failure to include the impact of the project on a nearby nesting site of endangered turtles. Ramesh's decision is in contrast to his earlier denial of Vedanta's request to build a bauxite mine in Orissa. According to Ramesh, the project is crucial to the future of India's growth. Kim Jong-hoon, Korea's trade minister, agreed, saying that the future of Korea's future investments depended on the outcome of Ramesh's decision. Ramesh has stated that his duty is to balance the needs of India's economy with the needs of its environment; while he's allowed controversial projects to continue, such as the 31-story residential tower in Mumbai that broke new Coastal Regulation Zone rules, some actions have been praised by environmentalists, such as policies to reverse deforestation and a recent partial plastic bag ban. For the full story, see http://www.guardian.co.uk/environment/2011/feb/23/india-steel-mill. For the story on the plastic bag ban, see http://www.plasticsnews.com/headlines2.html?id=21242.