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Congress questions Orissa government's ‘favour’ to Posco

The issue was raised by Congress member Naba Kishore Das while participating in an adjournment motion on 'Orissa government's love for Vedanta University project'.

DNA Web Team

Updated : Jun 26, 2010, 10:13 PM IST

The Congress today questioned the Orissa government's action of recommending the South Korean steel giant Posco's name for prospecting license (PL) over an iron ore reserve even without making minimum investment in the project.

The issue was raised by Congress member Naba Kishore Das while participating in an adjournment motion on 'Orissa government's love for Vedanta University project'.

"How can the state government recommend the name of Posco-India for PL over Khandadhar iron ore reserve in Sundargarh district while the company has not invested 25% of its proposed investment," Das asked.

Demanding the formation of a committee to probe into the "irregularities" behind the recommendation of Posco-India's name, Das said a company has to spend 25% of its total proposed investment in order to be eligible to get its name recommended for PL.

"As the norm for recommendation of any company's name for PL is not applicable for Posco, we doubt some underhand deal," Das alleged seeking a ruling from Speaker to probe the matter.

Posco-India should have invested at least Rs12,000 crore in order to become eligible to get its name recommended for the PL, he pointed out.

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