The State Government’s recent claim that the Posco is not responding to its MoU renewal proposal and the exchange of letters between them seeking payment of dues and expense reports are clear indications that both are not in good terms now. They are trying to escape from awkward and uncompromising situations arising due to the new Mines and Minerals (Development and Regulations) Act 2013 and other hurdles.
The Act has debarred the South Korean company from getting the Khandadhar iron ore reserve directly on the State Government’s recommendation. The Posco will now go through auction route to get the 2000-hectare reserve located in Sundargarh district. The State Government, which had recommended to the Centre to grant the Khandadhar mines to the Posco for setting up of its steel plant near Paradip, is now helpless.
This being the situation, both the Government and the company are unable to exchange the ‘hurting’ realities between them. While the Government has started thinking what would be its ‘confidence winning’ answer to people if the Posco withdraws its project proposal after 10 years of the MoU signed on June 22, 2010, the Posco, on the other hand, thinks it should not lose money for the Government’s faults and, in case it decides to withdraw its project that should be without any litigation and shouldering of blames.
Though the recent developments are not ambiguous enough for people to understand that the Posco is no more interested to establish its project yet both the Government and the steel behemoth should come out to make their stands clear, feel observers. “The Government’s offering of supply of raw material to the company is just eyewash. It knows very well that the Posco will not accept the proposal as acquiring of iron ore through the OMC would cost it more and the steel produced with the OMC-supplied raw materials will not be saleable due to higher costs. The offer is just a step towards creating an escape route from the public glare,” said an industrial expert.
The Posco, as the fourth largest steelmaker of the world, has also responsibility to make its stand clear at the earliest. Though the Posco’s claim for expense report on Rs30 crore is a befitting reply to the Idco’s seeking of Rs54 crore land premium and Rs18 for forestland conversion yet the step has been commonly perceived as tit-for-tat. People should not be fooled anyway. If the Government wants the Posco project, considered as the largest FDI project in India with a Rs54,000-crore investment proposal, it should come out with worthy offers and the Posco, if it has interest to proceed in the present situation, should inform the Government about what alternatives it needs being very practical, opine intellectuals.