The fate of the Posco steel plant project in Odisha hinges on the single most important issue of ‘captive iron ore mines’ which shall be the focus of the official level meeting at the Cabinet Secretary level at Delhi on 25 August.
Though there are several other troublesome aspects like water, environment clearance for a captive port and land which has been reduced drastically from the original 4000 acres to barely 2700 acres, the most crucial aspect is whether the central government will be able to provide a captive iron ore mine to the company as a ‘special case’ instead of asking the steel major to go through the auction route.
As on date, the minister of mines has categorically stated that following the amendments to the MMDR Act, Posco has to bid for iron ore mines. Yet the Odisha government hopes for a special consideration on the basis of ‘international commitment’and the fact that application for prospecting licence for the Khandadhar iron ore mines had been filed since January 2009.
Chief Secretary Gokul Chandra Pati in a letter the cabinet secretary Pradeep Kumar Sinha has stated that the commitment made to Posco has international implications and it is a important project in the context of ‘Make In India’.
Odisha is keen to provide all support without any further delay, promised the chief secretary while requesting intervention of the central government at the highest level.
Though the state government has not got any formal communication from Posco, it is understood that their proposed investment is linked with availability of assured raw material.
The state government had recommended Posco’s application for grant of prospecting licence of iron ore in Khandadhar in 2009. The state had also furnished all clarifications as sought from time to time by the central government.
The approval was not accorded, said the chief secretary.
In March this year, the steel and mines ministry informed that Posco has become ineligible under the new MMDR amendment ordinance and it has to participate in the auction process.
Given the fact that the application had been made in 2009 and the international implications involved, the Centre needs to reconsider the matter, pleaded the state government.
The official level meeting on 25 August will try and figure out a way to retain the project. But the final call will be taken at a meeting between the CM, Union Finance Minister Arun Jaitley, Posco representatives at the PM level, said reliable sources.
The only option is to assure Posco of long term iron ore linkage through the Odisha Mining Corporation, feel industrial circles here while pointing out that the Centre cannot make an exception in one case as many others would start demanding the same favour.
Bureaucratic red tape and incompetence of the political leadership in the state has led to a desperate situation where last ditch attempts are being made to salvage the situation and retain the project which has been put on ‘freeze’ by the company which waited for 15 years from 2005,remarked industry sources here.
Why didn’t the CM Naveen Patnaik meet central ministers and make a similar effort all these years. In fact during the UPA regime, it was the other way round, the then PM Manmohan Singh was the one who used to send officers from the PMO to monitor progress and goad the state government to expedite project work.
On one occasion Singh had even called the CM to Delhi and arranged a special invitation for him to attend the customary dinner at Rashtrapati Bhavan on 26 January when the South Korean president was the chief guest, noted Congress leaders here.
Source: The Statesman
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