NEW DELHI, Nov 10 (Reuters) - An experts' panel has deferred by 10 days an environmental impact report into a $12 billion steel plant project by South Korea's POSCO, further delaying India's biggest foreign direct investment, newspapers reported on Wednesday.
The delay means Prime Minister Manmohan Singh, who is monitoring the project as he seeks closer ties with Seoul, will fly to the Group of 20 meeting in South Korea on Wednesday without firm government commitment to the project.
The delay was reported by two newspapers, the Hindustan Times and The Times of India, without giving sources. The environment ministry was not immediately available for comment.
POSCO is among several companies that have come under scrutiny from Environment Minister Jairam Ramesh, whose tough approach has sparked criticism from businesses and even other members of the government pushing for rapid industrialisation.
The panel recommendation, which is not binding but is required before Ramesh makes his final decision, was expected to be released this week.
The long-delayed plant in India's eastern state of Orissa has been stalled by protests and environmental reports spearheaded by Ramesh, who has scrapped many big-ticket projects including some by London-listed miner Vedanta Resources Plc.
Prime Minister Singh is keen to forge strong political ties with South Korea, raising the likelihood that the project will eventually be given the go-ahead.
The project faces a unrelated hurdle in the form of a court case filed by a local firm against the Orissa state government, contesting its decision to grant a mining concession to the South Koreans, as the company had also bid for it.
The decision on this case lies with the Supreme Court. (Reporting by Henry Foy; Editing by Alistair Scrutton and Miral Fahmy)