Odisha government says it hasn't received any communication from the company about its alleged plans of shelving the project.
The Odisha government today expressed optimism on the execution of the Rs 52,000 crore mega steel project by Posco near Paradip, and said it had not received any communication from the South Korean firm about its reported plan of putting the project on hold.
"The state government has not received any communication regarding Posco''s plan of putting Odisha project on hold. We are optimistic about implementation of Posco''s 12 MTPA mega steel plant near Paradip," Steel and Mines Minister Prafulla Kumar Mallick told reporters.
The Odisha government has earlier made its stand clear on the Posco project, Mallick said, adding that the state had continued to demand making special provision of supplying raw material to Posco plant, considering it as an international commitment.
"The state government had made recommendation in favour of Posco for getting Khandadhar iron ore reserve much before the new MMDR Act came into the force this year.
Therefore, the company should be provided the raw material linkage as per the previous provisions of the MMDR Act," Mallick said.
Posco-India had entered into a pact with Odisha government on June 22, 2005 to construct the plant in the state.
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Asked whether the Posco''s decision to put its Odisha project on hold would not affect the ongoing industrialisation process in the state, Mallick said "out of 49 MoUs, so far 32 have been executed. And we hope that the remaining projects will see the daylight soon."
The company faced trouble in land acquisition since the MoU was signed and other legal problems leading to delay in implementation of the project.
In a fresh blow to the company this year, the Centre has said Posco would now have to participate in auction to get iron ore mines to feed its facility instead of direct allotment as assured earlier by the state government in its MoU in 2005, thereby making the company now obligated to pay for reserves that were initially offered for free.
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