Bhubaneswar, Nov 28 (IANS) Though the $12 billion steel project of Posco is yet to see the light of the day even after nine years, the Odisha government is still optimistic about the project, which is proposed to be set up in Jagatsinghpur district.

The steel project of South Korean major, once tipped as the largest foreign direct investment (FDI) in India, is facing inordinate delay following resistance of local people forcing it to execute the project in a phased manner.

“The project work of Posco has not started yet. However, we are optimistic about the project,” Steel and Mines Minister Prafulla Kumar Mallick told the state assembly Friday.

Mallick said the Industrial Development Corporation Limited (IDCO) has acquired 2,752 acres of land for Posco, and has handed over 1,880 acres to the steel company.

IDCO is the nodal land acquisition agency of the Odisha government. The minister also said that the government has recommended prospecting license of iron ore mines in favour of Posco which is under consideration of central government.

Recently, the government recommended Khandadhara reserve in favour of Posco India. It recommended iron ore mining over a notified area of 2,082.502 hectares out of the total 2,500 hectares that make up the Khandadhar deposit.

The ministry of environment and forests had given environmental clearance to this Rs.52,000 crore project for setting up a 4 million tones per annum capacity of integrated steel plant in first phase. However, the original plan of setting up of 12 MTPA steel plant has remained unchanged and intact.

The company requires 4,000 acres of land for the entire project. The company had inked memorandum of understanding (MoU) with the state government in 2005.

However, there is no visible progress at the plant site.