Post News Network
Bhubaneswar, April 26: A day after Industry minister Devi Prasad Mishra asked the South Korean steel najor Posco to pay land premium, steel and mines minister Prafulla Mallik Sunday asked the company to clarify its stand on setting up of the proposed steel plant in Orissa.
“A lot of reports are coming regarding the uncertainty of establishment of Posco plant in Jagatsighpur district. Therefore, the company authority should make its stand clear before the state government,” Mallik told Orissa POST.
The state government is optimistic and positive about the plant and it is ready to provide all necessary support for commissioning the plant, he said.
When questioned about Posco’s raw material issue, the minister replied, “The Centre has decided to allocate mines through auction and as per the provision of the amended Mines and Minerals (Development and Regulation) Act, 2015, the company can participate in the auction. If it fails to get mines through the auction route, we will ensure long-term raw material linkage for the plant like some other steel plants getting in state,”
The state government has decided to make it mandatory that the mining leases have to reserve 50 per cent of iron ore production every month for domestic steel plants. Through this route, the state will ensure long-term raw material linkage to feed the plant, he elaborated.
Commenting on renewal of MoU to set up the plant, he said, “So far, the company has not approached the state government, but we are always ready for it.”
The state government’s MoU with Posco India has lapsed since June 22, 2010 and it has not been renewed so far.
