It is reported that POSCO, South Korea steel giant has threatened Orissa government due to delay in fulfilling its promise regarding 4,004 acre land for its 12 million tones per annum Greenfield steel unit from the state government.

The report cited a POSCO official as saying that "The project work is already too delayed. We have given deadline to the Orissa government to hand over the required land."

POSCO officials are also concerned over the delay in recommendation of Khandahar mine to POSCO.

POSCO is also struggling to get forest division clearance by Supreme Court empowered committee and it has not got non forest land from state government as yet.

POSCO has signed MoUs with Orissa government to put up an INR 51,000 crore steel plant on June 2005 and this project was supposed to start in 2009 at Jagatsinghpur district. But so far there has not been any progress and POSCO’s project site has turned into a war zone.