The clearance will pave the way for Posco to build the steel plant with an annual production capacity of 12Mt. The Odisha project, the largest foreign direct investment in India, has languished since 2005 due to problems related to environmental clearance and land procurement.

Officials in the ministry said Posco’s project comprised of two aspects – a steel plant and a port project. The two projects have been delinked and approval for the steel plant has been granted. Environment clearance for the port is pending.