Odisha delayed sending Posco mines proposal: Pradhan

Says Posco has full support of the Union government

Union minister for Petroleum and Natural Gas, Dharmendra Pradhan today blamed the state government for delay in sending the proposal for allotment of captive iron ore mines to Posco, which has proved to be detrimental to the grounding of the company's project in Odisha.

"The government had sent the proposal recommending mines for the Posco project just three days before Mines and Minerals (Development and Regulation) Amendment Ordinance Act, 2015 came into force. By then, it was crystal clear that mines will be auctioned. Why the government was sleeping over the matter since 2005? It could have sent the proposal to the Centre two years back," Pradhan said. He was addressing the media on the achievement of the Narendra Modi led NDA government in last one year.

Posco has full support of the Union government. But the South Korean steel company has to abide by the new act, he added. Refuting the allegations of Pradhan, state steel and mines minister Prafulla Mallick said, the government had sent the recommendation for grant of prospecting licence for Khandadhar iron ore mines in favour of Posco on November 1, 2014 and the MMDR Amendment Ordinance was promulgated on January 12, 2015. Mallick added, "we had requested the Centre to consider Posco as a special case which was rejected by them."

Recently Union Minister for Industry and Commerce Nirmala Sitharaman too had passed the buck on the uncertain fate of the Posco project to the state government. The project, with estimated investment of 12 billion dollar, was billed as the biggest foreign direct investment (FDI) proposal in the country.

The Odisha government did not renew the MoU of the steel major, signed on June 22, 2005 having of tenure of five years, because of the internal bickering in the BJD government, Pradhan alleged.

On the establishment of Indian Institute of Management in the state, he said, the government should not indulge in politics over the finalisation of the site of the premier institute.

Highlighting the contributions of the Union government to the state, the Union minister said, his ministry is investing Rs one lakh crore in Odisha. Steel Authority of India (SAIL) is actively considering the proposals to take over Neelachal Ispat Nigam Ltd (NINL) and Idcol Kalinga Iron Works Ltd.

The Union ministry will set up skill development centre of excellence in Odisha to provide training to people in the hydro-carbon sector for which the state government has already given in principle approval for 100 acres of land.

Centre will set up 30 skill development centres in the state to provide training to the people in different sectors, he added. On the Union government's move to disinvest shares in navratna firm, National Aluminium Company (Nalco), he said, the decision is taken to expedite the development process in the country.