Mumbai: South Korean steel major Posco, which had sought 4,004 acres of land for setting up its 12-million tonne greenfield steel unit near Paradip, in Orissa, has decided to go ahead with construction without displacing anyone from its Rs52,000-crore steel plant site.

Uncertain of being given prospecting licence for Khandadhar iron ore mine, Posco said it would not wait long. "We will start construction work at the plant site early next year with whatever land is available with us," Posco- India chairman and managing director Soung Sik Cho said.

"We are planning to start real construction over 493 acre at the plant site, preparatory work for which will start from next month," Cho said.

Cho, who met Orissa chief minister Naveen Patnaik, said the company had already received 193 acre of land for the purpose. "Orissa government has assured to hand over another 300 acres of land very soon to enable us to start real construction," he said.

Posco, meanwhile, has decided to take up rehabilitation measures before displacing anyone from the plant site. The Posco CMD said the company was taking several steps for rehabilitation and resettlement of the people who would be displaced due to the project. Posco is looking for suitable land for housing the oustees near Paradip as soon as possible, he added.

Cho said though local people were initially opposing the project, they had now changed their mind. He also refuted allegations that the company resorted to using musclemen while he visited the plant site recently. Cho said the company had been taking up some livelihood programmes for people who would lose their jobs for the project. "We will consider the proposal on engaging displaced people in dry fish and pickle business," he said.

Cho said he had raised the issues relating to the prospecting licence for Khandadhar mines besides the progress on land acquisition at the plant site. "We have asked Orissa government to expedite PL processing work so that the company gets raw material soon," he said.