A day after Union Minister Nirmala Sitharaman sought to blame the state government for the uncertainty over Posco project, Odisha government today held the Centre responsible for the "present situation".
"Had the Centre accepted the Odisha government's recommendation of prospecting licence (PL) over Khandadhar iron ore reserve in favour of Posco, the present situation would not have arisen," Odisha's Steel and Mines Minister Prafulla Kumar Mallick said.
Prospecting licence is awarded to a company for prospect of minerals in a area or a region.
Mallick said the state government had made recommendation in favour of Posco much before the MMDR (Amendment) Act, 2015 came into force.
"As the recommendation was made prior to the Act, the Centre should respect it and allow Posco to get PL over the iron ore reserve instead of asking the company to participate in the open auction," Mallick said.
Expressing confidence that South Korean steel giant Posco would set up its proposed 8 mtpa steel mill near Paradip at an investment of Rs 52,000 crore, Mallick said the government will make alternative arrangements for the firm to provide raw materials.
The company can get long-term raw material from the state-run public sector unit (PSU) Odisha Mining Corporation to meet its iron ore requirements, the minister said.
Replying to a question, the minister said the steel major has not come for discussion with the state government after the MMDR (amendment) Act came into effect. He said the government would discuss with the company for the smooth implementation of the project.
Sitharaman while addressing a press conference here yesterday had sought to blame the Odisha government for the uncertainty over the country's biggest FDI project. It is the state government, and not the Centre, which has to decide about the fate of the plant, Sitharaman had said.
Posco, which signed an MoU with the state government in June 2005, has so far been provided with 1,700 acres of land by the state government for setting up its plant.
Another 1,000 acres of land is ready for the purpose, state Industries Minister Debi Prasad Mishra said, adding the state government has been cooperative to the company all along.
