Bhubaneswar, Mar 24: South Korean steel firm POSCO said on Monday it is unlikely to begin construction of a major steel plant in Orissa on April 1 as it had hoped due to "procedural" delays.

Industry sources said the problems related to obtaining an iron ore mining lease and forest land needed for the plant.

"Certain procedural sanctions still remain to be obtained, despite the best efforts of the company," POSCO India spokesman Shashanka Pattnaik told Reuters without elaborating.

"Under these circumstances, it would be difficult to perform the ground breaking ceremony on April 1, 2008," he said.

The proposed $12-billion plant has been left hanging for more than two years due to stiff opposition from local farmers angry over losing their land for the project.

The firm is also waiting for clearance from the Supreme Court for the use of about 2,900 acres of government-held forest land.

In December, POSCO and the state government of mineral-rich Orissa announced construction would start on April 1, when they said a ground breaking ceremony would be held.

"The company is closely monitoring the situation and trying its best to get the necessary sanctions," the POSCO spokesman said, without suggesting a new date for work to begin.

Earlier, POSCO said it was hoping to start steel production at the unit by the end of 2011.