A U.S. daily says South Korean steelmaker POSCO has cleared a major hurdle in promoting a project to build a steel plant in eastern India.

The Wall Street Journal said that an Indian government-appointed environmental panel approved the South Korean steelmaker’s plan to build an integrated steel mill in Orissa. The project is India’s largest-ever foreign investment proposal.

The daily reported that the 12-billion-dollar project now awaits final approval from Indian Environment Minister Jairam Ramesh.

However, the federal panel’s approval is limited to the initial production capacity of the steel plant, which is around four million tons a year.

POSCO has to win separate clearances for every stage of expansion for the project, the goal of which is to have facilities capable of producing 12 million tons a year.