After having completed the arduous task of acquiring land for its proposed steel plant in Odisha’s Jagatsinhpur district, South Korean giant POSCO is now knocking on Centre’s door to seek its approval for exploring iron ore mines in the State’s Khandadhar region which would fulfill its raw material requirement for the project.
POSCO India’s Chairman and Managing Director (CMD) Yong Won Yoon has sought an appointment with Mines Minister Dinsha Patel for any day this week, and according to sources, the purpose of the meeting is to impress upon the minister to urgently provide it with the prospecting licence (Pl) for exploring the iron ore reserves in Khandadhar which it requires for the Rs 52,000 crore steel plant.
As reported by The Pioneer earlier, in May this year, the Supreme Court (SC) had set aside an order of the Orissa High Court that had quashed the state government decision to allow POSCO a Pl for Khandadhar iron ore reserves, and had directed the Union Mines Ministry to review the possibilities of allowing the Pl to the company.
Though soon after SC’s order, the Mines Ministry had indicated that it would complete its review of POSCO’s requirement of a Pl for exploring Khandadhar reserves within a month, it has till date not given its views on the matter, thus forcing Yoon to seek an appointment with Patel.
According to sources privy to the developments, Yoon in a letter to the Mines Minister, has expressed gratitude on behalf of POSCO’s management to the Centre for lending its support throughout the land acquisition process in Odisha and has now sought time from Patel to pay him a “courtesy call”.
Yoon, sources said, would impress upon the minister to expedite the ministry’s review of granting POSCO the Pl for exploring the Khandadhar iron ore reserves, which are vital for the upcoming plant, as already almost three months have passed since the Supreme Court had asked the Centre to look at the possibilities of granting access to POSCO to exploit the reserves.
POSCO had completed the process of acquiring 2,700 acres of land for first phase of its proposed 8 million tonnes per annum (mtpa) capacity steel plant in Jagatsinhpur a month back, and now wants to get a clear picture from the Centre on whether it would be able to get a Pl to explore the Khandadhar reserves. Once the Mines Ministry completes its review of POSCO’s requirement, it would send its response to the Odisha Government, which in turn would facilitate the Pl.
With the Odisha Government having been quite supportive of the project, sources said that the South Korean company should not face any problems in Bhubaneswar once the Mines Ministry sends back the Pl case to the State Government after completing its review, however it is the delay on part of the Centre in doing so, which is making POSCO India’s management anxious.
Yoon’s request for a meeting with Patel is a move on part of the steel major to get things moving on the Pl front, so that it can begin construction work for the plant.
Due to numerous delays in the project, which was originally envisaged in 2005, it has now been downsized from the originally scheduled 12 mtpa capacity steel plant which was to come up in an area of 4,000 acres, to a 8 mtpa capacity plant that will come up in an area of 2,700 acres.