Bhubaneswar, Aug 26 - Dismissing reports that the company was planning to relocate its proposed steel plant in Orissa, South Korean steel major Posco Wednesday said it will start the construction work for the greenfield project early next year.

'There is no plan to relocate the steel plant to another site. It's all rumour. We will start levelling land early next year,' Posco India chairman Tong Hee Lee told reporters after meeting Chief Minister Naveen Patnaik here.

He, however, added that the Orissa government should fulfil its obligations as per the agreement signed with the company.

'We have to see whether the government fulfils its obligations before going ahead,' Lee said.

Asked about the protests against land acquisition for the project by locals, he said: 'we are trying to acquire land through consensus. But still there are some problems.'

The company has decided to separate its mining project from the steel plant for the easier implementation of the projects, Lee said.