Union steel secretary R K Singh today exuded confidence on implementation of the Posco mega steel project in Odisha, saying he would take up the steel major's bid to get prospecting licence (PL) for Khandadhar iron ore mines with the central mines ministry.
Asked on the allotment of the Khandadhar iron ore lease in Posco's favour, Singh said, "This has been mentioned to me. I am not fully aware because this is dealt by a separate ministry - the ministry of mines. I will go and take up the issue with my counterpart in the ministry of mines."
The state government had recently sent a revised proposal to the Centre, recommending sanction of PL in favour of Posco for notified area of the Khandadhar lease. The central mines ministry had urged the state government to submit two separate proposals, segregating notified and non-notified areas of Khandahar iron ore area. In March this year, the state government had recommended grant of PL over 2,500 hectare (ha) area in Khandadhar mines to Posco. Of the total area, 650 ha were non-notified, i.e. the area which was not recognised by the state government as mineral bearing site.
Even though Posco's mega steel project, billed as the country's largest FDI ($12 billion), is beset with delays since the signing of MoU (memorandum of understanding) with the state government in June 2005, the steel secretary sounded positive on its execution. "Both the Government of India and the state government are committed to the Posco project. The land acquisition and other activities are going on though there may be delays. There has been delay in the past, but we are very keen and confident that the Posco project will come up in Odisha", Singh said. The 12 million Posco steel project needed 4,004 acres. But in the first phase, Posco had sought 2,700 acres to develop an eight million tonne plant. So far, the state's land acquisition agency, Odisha Industrial Infrastructure Development Corporation (Idco) has handed over 1,700 acres to the steel firm. The transfer of remaining 1,000 acres is pending since Posco is yet to pay land dues worth Rs 54 crore.
