New Delhi, Aug. 6 (PTI): Charging the Orissa Government with "favouring" South Korean steel giant POSCO, the CPI today asked the Centre to reject the "dereservation" of forests proposal of the state government.

In a letter to Prime Minister Manmohan Singh, party Secretary D Raja sought his intervention saying the Centre "should reject the dereservation of forests proposal of the Orissa government immediately".

Observing that the state Forest and Environment Department had sought diversion of 1,253.225 hectares of forest land near Paradeep for establishment of the Rs 5,200 crore POSCO steel plant, he said, "unmindful of the concerns of the people, the state government is bent upon clearing everything in favour of POSCO."

This was "absolutely contrary" to the stated position of the Centre with regard to the conservation of forests and environment.

"The allotment of such vast tract of forest land near the coastline is also contrary to the objections" raised by the Defence Ministry, he said.

Considering that Orissa continuously suffered from natural calamities, Raja said there was need to maintain eco-balance by preserving forests and reserving the existing forest lands untouched.

The CPI leader's statement came days after the government granted environmental clearance to POSCO's 12 million integrated steel project in Orissa.