ABHIJIT ROY CHOWDHURY
TIA
NEW DELHI: The Orissa government on Friday filed a special leave petition in the supreme court challenging the lower court’s decision to cancel the Posco India’s mining license for Khandadhar mines.
POSCO, the world’s third-largest steel maker, wants to mine iron ore in the state in the mineral rich Sundergarh district for the proposed steel plant, which aims to have a capacity to produce 12 million tonnes of steel a year.
POSCO’s proposed project is India’s biggest foreign direct investment proposal, but it has been delayed by more than three years due to protests by farmers who fear losing their livelihood and green worries.
In July, a lower court asked state government authorities to review their decision to recommend POSCO for a mining concession, after a local company, also seeking a mining concession, challenged the move.
The recommendation of the Khandadhar mines in favour of POSCO was done as per the MMDR (Mines and Minerals Development and Regulation) Act and there was no violation."
The proposed steel plant is still awaiting environmental clearance, with a decision likely next month. The litigation over the mining concession is unlikely to hold back the start of the mill’s construction once the green nod is given.
Last year, the state government recommended Posco India for prospecting on more than 2,500 hectares in the Khandadhar region in the state’s iron ore-rich Sundergarh districts.