BHUBANESWAR | Apr 27, 2015: Even as uncertainty prevails over the steel plant proposed to be set up by Posco at Paradip, the State Government on Sunday said that the South Korean company should make its stand clear.

Minister of State for Steel and Mines Prafulla Mallik said that Posco-India should first discuss its stand with the State Government. Stating that the Odisha Government has a positive attitude towards the project, Mallik said that the South Korean still major should make its stand clear on the eight million tonne steel plant project.

“The company should intimate the State Government whether it wants to set up the steel plant,” the minister said and added that it should tell us about what it wants to be done.

The minister said that even though amendments in the Mines and Minerals (Development and Regulation) Amendment (MMDR) Act has created problems, the State Government is ready to supply raw materials for the proposed plant. Mallik said that if Posco wants, raw material can be supplied through the Odisha Mining Corporation (OMC). “As the Government facilitates supply of raw materials to other companies, the same can be done to Posco provided it wants so,” he said.

The proposal of providing captive mines to Posco could not be successful with Parliament’s approval to the amended MMDR Act. The State Government had requested the Centre for allotment of Khandadhar mines on preferential basis to Posco, but according to the amended MMDR Act, allotment of mines can be done only through auction.

“We had requested the Centre to consider our PL recommendation in favour of Posco as a special case since international commitment is linked with the project. However, they (Centre) now say that Posco too has to come under the auction route in order to get raw material linkage,” the minister said.

Meanwhile, delay in payment of about `73 crore by Posco despite reminders from the district administration has given rise to speculation about the fate of the proposed steel plant.

Posco-India requires 2,700 acres of land for its steel project of 8 million tonne capacity out of which the company was given advance possession of 1,703.56 acres about 15 months back. Official sources here maintained that the company has shown no interest for taking possession of the rest 1,000 acres of land.

Posco-India is yet to make payment of ` 54.22 crore towards premium of the land and `18.89 crore towards Net Payment Value (NPV) against de-reserved forest land.

The company had also withdrawn from special purpose vehicle (SPV) for the Haridaspur-Paradip railway line project and asked the railway authorities for return of its money. The company had provided around ` 27.5 crore for land acquisition for this project. The rail link was crucial for the Posco project as the company planned to get the raw material using this link from the mineral rich belt of the State.

(Source: http://www.newindianexpress.com/)