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Panel Stops Clearances For India Steel Plant

An Indian environmental panel has suspended clearances for South Korean steel giant Posco to build a $12 billion steel plant in India.

NEW DELHI (AP) — An Indian environmental panel has suspended clearances for South Korean steel giant Posco to build a $12 billion steel plant in India. The decision potentially unravels one of India's largest-ever foreign direct investment projects.

Friday's ruling by the National Green Tribunal is the latest in a series of setbacks to the project that was first announced in 2005.

India has been embroiled in fierce debate over how to protect its environment while lifting hundreds of millions of people from poverty through investment and infrastructure.

The tribunal said the clearances granted last year were based only on environmental information of the first phase of the project and not the entire project.