India's environment ministry has cleared South Korean steel giant Posco's planned steel plant in eastern India but has asked the company to spend more on social welfare.

An environment ministry official said Friday the clearance was given a few days ago and will allow Posco to go ahead with the massive plant in Odisha state. The official was speaking on condition of anonymity as he was not authorized to speak to the media. He did not give further details.

Posco spokesman Jeong Yong-min in Seoul said the Indian government has asked the company to spend 5 percent of its $12.6 billion investment in Odisha on social commitments.

But Jeong said no agreement has been reached on how much the company would spend on its social projects.