As Centre asks State Govt to submit yet another proposal
It seems South Korean steel major Posco will have to wait for more time to have an iron ore mine to cater to its proposed mega plant near Paradip, thanks to the indecision of the Union Ministry of Mines (MoM).
The MoM has once again rejected the proposal sent by the Government of Odisha to grant a Prospecting licence (Pl) for iron ore mine over an area of 2,500 hectares in the Khandadhar hill in Sundargarh district.
The State Government had sent the latest proposal on March 6, 2014 with detailed observations to grant Pl for iron ore in villages of Kensara, Bhutuda, Rantha, Batagaon, Sareikala, lusi and Raisuan in Sundargarh district.
For the first time that the State Government had sent a proposal to the Centre for granting Pl in favour of Posco India on December 26, 2006 to the MoM. But the proposal was rejected on July 16, 2007 and the State Government was asked to send a revised proposal.
Then, the State Government sent a detailed proposal on January 27, 2009, which was also turned down by the Union Government. After complying with the MoM’s stipulations, the State Government sent proposals in August 2013 and later on March 6, 2014.
The State Government had proposed 2,500 hectares (2,085 ha Notified area and 415 Ha Non-Notified areas) for the Posco. However once again, the MoM on October 10 has rejected the latest proposal and requested the State Government to submit a revised one within six months.
The MoM has drawn the State Government’s attention to the opinion of the Supreme Court on the Presidential Reference, in which it has opined that while auctions are not a necessary condition for disposal of natural resources, the procedure followed by the Government would have to conform to the requirements of Article 14 of the Constitution.
It says, “The action has to be fair, reasonable, nondiscriminatory, transparent, non-capricious, unbiased, without favouritism or nepotism, in pursuit of promotion of healthy competition and equitable treatment.”
“It should conform to the norms which are rational, informed with reasons and guided by Public Interest. All these Principles are inherent in fundamental conception of Article 14. This is the Mandate of Article 14 of the Constitution of India,” said the MoM in its rejection letter.
The Ministry has also requested to resubmit the proposal for Notified area, which comprises 2,085 Ha separately and to notify the 415 Ha of Non-Notified area or in alternate the State Government needs to provide specific reasons for not doing so, said sources.
A State Government official said that instead of rejecting the entire proposal, the MoM could have approved the Pl for the 2,085 Ha of Notified area and requested for clarification on Non-Notified area.
Notably, way back on June 22, 2005, the Posco signed a Memorandum of Understanding with the State Government to set up a steel complex with a capacity to produce 12 million tonnes.