The Pohang Iron and Steel Company’s project, also known as POSCO has been adjourned by the Orissa government due to the objection shown by the local personnel and the heavy rains.

The POSCO has proposed US$12bn steel plant in the state. Since past six years, this proposal by the South Korea's POSCO, the world's third-biggest steelmaker company has been in theory and the villagers protest is again a setback for the company. The contract of the project was signed in 2005 and the project was facing a lot of examination. However, the Environment Ministry in New Delhi has given it a clean chit.

POSCO’s spokesperson stated, that the company will continue with the project as there is no amendment from their side. Also the POSCO officials are expecting that the Orissa government will talk to the residents and will come up with the solution.

He said, "We expect land acquisition to resume at any time. I am confident that the government would be able to complete land acquisition by the end of this month". According to him, the Government has 2,000 acres of land and another 1,700 acres are required now. Out of 1,700 acres of land only 152 acres belong to the residents, the other part is unlawfully subjugated by the people. Also, the protests come from three villages and majority there is in favour of the POSCO project.