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Union Minister for Industry and Commerce Nirmala Sitharaman today said, it is Odisha government and not the Union government to decide the fate of Posco project, billed as the biggest foreign direct investment (FDI) proposal in the country.
"The answer for Posco (project) should come from the state government, not from us," she said while interacting with reporters here at the Bharatiya Janata Party (BJP) office.
The fate of Posco project has been pushed into uncertainty ever since the Union government made it mandatory that every entity aspiring for mines lease will have to participate in an auction process. The new rule is contrary to the company's pact with Odisha government in June 2005, which promised the steel producer a captive mine on preferential basis to feed its plant.
The South Korean steelmaker, which has developed cold feet has been towards the project after the enactment of the new mining laws, has downsized its staff strength in Bhubaneswae and had even asked the government agencies to refund the money paid by it for development of rail corridor and facilitation of land acquisition for its proposed plant near Paradip.
The state government had sent proposals for prospecting license for a captive mine in favour of Posco last year for approval of the Centre. However, the approval never came from the Centre due to series of clarifications sought by it, and in the meanwhile, the enactment of new law via ordinance route in January this year made proposal of captive allotment redundant, making it mandatory to go through competitive auction to own mines.
The ruling Biju Janata Dal (BJD) said, the Centre should find out a way to allow Posco to get miming lease on prefertial basis. "International commitments like Posco should not change with the election of new government at the Centre. The Union government must find out a way to provide Posco an option to operate a mines lease without taking part in the bidding process,"said Samir Dash, BJD spokesperson.
During Prime Minister Narendra Modi's recent visit to South Korea, issue of Posco project did not find place in the agenda of bilateral talks, unlike his previous meet with South Korean President, Park Geun-hye in Myanmar last year.
Sitharaman also rejected the allegations leveled by regarding the Centrec neglecting Odisha in terms of financial assistance.
"Allocations are made on the basis of recommendation of the Finance Commission. As Odisha's share is enhanced from 38 per cent to 42 per cent, it is set to get Rs 1,12,677 crore in next five years," she said in the press meet.
This year alone, Odisha has got Rs 8,231 crore, she informed, adding, the Finance Commission gave its recommendations after consulting all state governments.
Therefore, none can claim that the state was not consulted, the senior BJP leader said.
