India clears Posco's $12 billion steel plant

ndia's environment ministry has given clearance to South Korean conglomerate Posco to build a $12 billion steel plant in eastern India -- but with numerous conditions attached.

The approval came more than five years after Orissa state government and Posco signed the deal, one of the largest foreign investments ever in India. Mineral-rich Orissa has been trying to woo investors by giving them mining rights, electricity and water at low prices.

But the move has run into violent protests. Conditions that Posco must meet before final approval is given include restrictions on air emissions, and a pledge to spend 2 percent of its annual net profit on social welfare causes. Another restriction requires Posco to maintain 25 percent of the land as a green space.