Post News Network
Bhubaneswar, August 20: The state government has decided to approach the Centre to call a meeting with Posco officials to clarify their stand on its proposed 12 million tonne per annum (mtpa) steel mill near Paradip in Jagatsinghpur district. The decision was taken at a high-level meeting held here under the chairmanship of Chief Minister Naveen Patnaik Thursday.
“The Chief Minister called a meeting to discuss the Posco project, where it was decided that the state government will approach the Centre to hold a meeting with the Posco officials to make its stand clear,” steel and mines minister Prafulla Mallik said.
Chief Secretary GC Pati has been asked to discuss the Posco issue with the central government and fix a date for holding the meeting where representatives of the Centre, state government and Posco will be present, he said.
“Posco should first come forward to hold discussions on whether or not it will set up its plant in the state. It should first spell out what kind of cooperation it expects from the state government. We are ready to provide all necessary support within the scope of the law,” Mallik said.
Recently, the steel major had signed an agreement with Uttam Steel and Power for a feasibility study to set up a 3 mtpa integrated steel plant in Maharashtra.
However, Mallik said the state government has no information on Posco setting up plants outside the state.
BJD MPs had August 12 met Union finance minister Arun Jaitley and discussed the Posco issue.
Earlier, Pati had written to Cabinet Secretary Pradeep Kumar Sinha calling for a review of the Posco project by the central government at the level of cabinet secretariat or the Prime Minister’s Office (PMO) to sort out issues plaguing it.
Pati had put the ball in the Centre’s court by saying, “The state government had recommended the application of the company for grant of prospecting licence (PL) for iron ore in Khandadhar, January 9, 2009. Though the state government followed up the proposal with the Centre and furnished all clarifications as sought, the Centre did not approve the grant of PL.”
The government took this decision as Posco reportedly decided to withdraw the Orissa project after the Centre asked it to participate in the auction process to get raw material. However, the company has not had any official communication with the state government in this regard.
The South Korean company had signed a memorandum of understanding with the state government June 22, 2005.
