Two Indian executives of South Korean steelmaker Posco were released today by villagers protesting against a proposed €8.8 billion project.
Hundreds of angry villagers, some armed with iron rods and sticks, had surrounded the officials yesterday when they went to Govindpur village to persuade farmers to sell their land for the planned Posco steel plant in the eastern state of Orissa.
The villagers freed the two officials following an assurance by Posco that its staff would not visit the area again.
Posco officials said the company was ready to "forego" land in volatile areas of Orissa and look for alternate sites.
"They are safe and unharmed and consequent to the incident we will proceed with caution from now," Posco spokesman Shashanka Pattnaik said.
Another company official was released yesterday after being held for some hours.
"We have taught them a lesson and they have promised they will never come back," Abhay Sahu, president of an anti-Posco group.
The project - India's single largest foreign investment - has sparked fears among villagers that their farmland and livelihood would be taken from them.
Some villagers support the project and clashes between both groups have left dozens injured since March.
The issue of acquiring farmland for industry in India - whose economy has been growing rapidly in the past few years - has become explosive, with farmers protesting against planned projects that would require agricultural land.
In West Bengal state, which neighbours Orissa, 14 farmers were killed in clashes with police while protesting against a planned chemical hub in March.