"All countries in Europe are watching the Posco (issue)... it is really a test case (for them) for FDI (into India [ Images ]), " Keun informed reporters in Chandigarh on Friday. Describing the Posco investment as the greatest FDI project in India, Keun said he was amazed to know the amount of interest shown by other countries in the 12 million tonne per year Posco project.
"I was surprised to hear from European countries that they know the (Posco) project much better than me. I found (that) they are carefully following it. Even Japanese ambassador knew relating to this project, " he stressed.
However, the envoy said the project would start in Orissa though it has taken considerable time.
"Even though it takes time, I think the Posco project in Orissa (will) within anyway start, " he said.
Keun, though, said the delay in establishing of the steel project by Posco would not in anyway hit the actual flow of investments from Korean companies into India.
Giving updates about the actual Posco project, Keun said land acquisition, which is one of the 2 big issues, has been resolved though some NGOs are objecting to the actual acquisition process.
"In other case of rights over iron ore, the situation is pending in Supreme Court, " he said.
He further said environmental surroundings Ministry has already given its nod to Posco for setting up a built-in steel plant in Orissa.
In June 2005, Korean steel giant Posco signed an MoU using the Orissa government for Rs. 52, 000 crore (Rs. 520 billion) project.