National Green Tribunal suspended the Environment Clearance Granted to Posco's Steel Project

The National Green Tribunal on 30 March 2012 suspended the environment clearance granted to Posco's mega steel project in Orissa in January 2011. The tribunal comprising Justice C V Ramulu and Devendra Kumar Agarwal held that the clearance given to Posco's mega steel project in Jagatsinghpur district of Orissa will remain suspended till the environment ministry reviews it afresh.

The tribunal pointed out that memorandum of understanding between the Orissa government and Posco states that the project is for production of 12 million tonnes of steel per annum (MTPA) but the environment impact assessment (EIA) report has been prepared only for 4 MTPA steel production in the first phase.

The tribunal’s order came following a petition filed by environment activist Prafulla Samantray seeking quashing of the environmental clearance granted to Posco on the ground that it was "contrary to the provisions of the EIA Notification 2006" and was "illegal and arbitrary".

Posco India Pvt Ltd was granted environmental clearance for its two projects, steel-cum-captive power plant project and captive minor port, in Jagatsinghpur district of Orissa in 2007.

The Ministry of Environment and Forest, after reviewing the same, issued environmental clearance with additional conditions on 31 January 2011 which prompted the petitioner to move the tribunal.