In a fresh setback for Posco steel project in Jatasinghpur district, the Centre has asked the Odisha government to clarify certain issues pertaining to the South Korean company's bid to mine the Khandadhar iron ore reserves in Sundargarh.
"We would examine the Union mines ministry's letter and take necessary action," steel and mines secretary G Srinivas told TOI on Saturday.
Official sources said the state government had recommended grant of prospecting licence (PL) to Posco for Khandadhar mines, covering both notified and non-notified areas. "The Centre has sought to know if the state was willing to separate it because the parameters for notified area and non-notified area are different," a source said.
The state government has recommended 2,500 hectare, including 500 hectare in non-notified area, for Posco. Non-notified area means a region which the state government has not recognized as bearing mineral.
The Union government, which 'returned' the Posco matter to the state government on October 10, had earlier sought similar clarifications, sources said, adding, the state government had earlier pointed out that the Supreme Court has ruled that the entire proposal has to be considered.
According to an officer, the state government wants that both the areas be considered together, but if the Centre insists, it will have to send separate recommendations for notified and non-notified areas. "If necessary, the state would demarcate and notify notified and non-notified areas in the proposed mines," an official source said.
The state government's bid to ensure Posco gets PL for Khandadhar mines has run into litigation and procedural problems over the past eight years. In 2005, Posco inked a pact with the state government to set up a 12 billion US dollar steel facility. The project is yet to take off.
Source: The Times of India
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