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The central mines ministry is set to convene a meeting soon with the officials of the Odisha government to discuss the status of memorandum of understanding (MoU) signed with Posco India to consider its case for grant of mineral concession to the company.
The state government has recommended grant of PL in favour of Posco India over the Khandadhar iron ore deposits in Sundargarh district.
“The meeting to discuss grant of mineral concession to Posco was scheduled on December 18. But it has been postponed and the next meeting is to be convened shortly. The government has prepared a status note on the Posco project which will be presented to the Union mines ministry,” said a government official with knowledge of the matter.
It may be noted that the central mines ministry in its letter dated October 10 this year had asked the state government to re-submit the proposal for PL over notified area of the lease. Accordingly, the state government sent the revised proposal for the notified area of 2,082.50 hectares (ha) for grant of PL on November 1. The matter is pending with the Government of India. Though there were more than 200 applicants vying for the prized Khandadhar deposits, the state government had recommended PL in favour of Posco. The special recommendation was made by the state government, invoking Section 11 (5) of Mines & Minerals Development & Regulation (MMDR) Act, citing that the project was the biggest FDI and would create value addition and employment generation.
Posco India had entered into a MoU with the state government on June 22, 2005 for establishment of 12 million tonne steel plant near Paradeep. The Posco mega steel project is billed as the biggest FDI project with an investment of $12 billion.
The Posco project needed 4,004 acres of land.
