| The state government had on Wednesday clarified that the Korean firm will get only the entitled 480 million tonne of iron ore against its request for 960 million tonne. |
| Speaking to Business Standard from Seoul, Tae-Hyun Jeong, general manager (director), Posco's corporate strategic planning department, said he was on his way to the state capital to discuss 'pending issues' regarding the signing of a memorandum of understanding. |
| When asked if Posco would be interested in setting up a steel venture in India despite the lower allocation of iron ore, he replied in the affirmative. |
| He, however, indicated that though the first stage of the project would have a capacity of only three million tonne of steel, it would be hiked to 12 million tonne in the coming years. |
| He said the latest decision of the state government would not alter the company's plans. |
| Even before Posco's move to set up the project, there were allegations that the Korean firm would be exporting raw iron ore from the country and deny domestic steel companies the opportunity to produce steel. |
| Though the proposed project needs around 960 million tonne of iron ore over 50 years, the state government policy assures raw material linkages to a new project for 25 years only. |
| Orissa's steel and mines minister P Behera had earlier said that Posco would be allotted as much ore it requires. |
| He said that Posco's proposed project was important for the industrial growth of the state and added that the Union government too had extended all cooperation for the implementation of the venture. |
| Earlier this week state government officials had attended a meeting at the prime minister's office to take stock of the progress in the project and discussed various issues relating to infrastructure problems like railway lines and road links. |
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