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The Centre has sought response from the Odisha government on grant of iron ore licence to South Korean steel giant Posco for its Rs 52,000 crore steel project involving the largest ever FDI in India.
The development comes in the wake of a high-level panel formed to address issues impeding mega projects in the steel sector, reviewing the stalled projects this month.
"The state government has been asked to clear the discrepancies ... State Government's reply is awaited, "Mines Ministry has told an Inter-Ministerial Group (IMG), which had sought to know the status on grant of prospecting license (PL) for Khandadhar iron ore mine.
The global steel player plans to set up a 12 million tonnes steel plant at Jagatsinghpur in Odisha entailing over Rs 52,000 crore investment is stuck for the last eight years on account of various regulatory hurdles and delays in land acquisition.
The IMG which reviewed the progress of mega projects earlier this month asked Mines Ministry as to what steps were initiated after Apex Court judgement on grant of PL for Khandadhar iron ore mine in May last year, an official said.
The Supreme Court in May had set aside the Odisha High Court order which had quashed state government's decision to allot iron ore licence to Posco in Khandadhar hills in Sundergarh district and had asked the Centre to consider all the objections raised by various parties pertaining to the mega steel plant and take a decision.
The High Court, on July 14, 2010 on the petition of Geomin Minerals, had set aside the state government's decision for allowing Posco mining in the hills.
Geomin Minerals had contended before the High Court that it had applied for the prospective licence for Khandadhar iron ore mines much before Posco.
The Odhisa government, which had moved the apex court, on October 29, 2010 on this issue, had contended that the High Court could not have quashed the state government's grant of licence to Posco as it was under section 11 (5) of Mines And Minerals (Development And Regulation) Act, 1957.
The state government in January 2009 had recommended Posco to the central government for granting prospective licence for Khandadhar iron ore reserves.
This was challenged by Geomin and later 16 other firms who have also applied for mining leases also intervened.
Meanwhile, any work on the Posco project is likely after Lok Sabha polls despite the steel maker securing environmental clearance in January for the plant.
"There is no progress on the project as the state government has not transferred remaining 1,000 acres to Posco. Now, considering the elections, we assume there is not going to be any development shortly," an official has said.
