Rs 54K cr Posco project is also Centre's responsibility: Patnaik

Orissa Chief Minister Naveen Patnaik today said the Centre also has a responsibility to see that Posco's Rs 54,000 crore steel project in the state comes through, even as a green panel remained divided on the proposal, which was red-flagged by the Environment Ministry.

"I certainly feel that it is also the responsibility of the central government to see that the Posco project takes place. It is the single biggest FDI proposal in India. It will create thousands of jobs, both directly and indirectly," Patnaik told reporters after meeting Finance Minister Pranab Mukherjee here.

Patnaik refused to comment when asked if he would join Steel Minister Virbhadra Singh in criticising the role of Environment Minister Jairam Ramesh for the delay in Posco's project.

Last week, Steel Minister Virbhadra Singh had advised Environment Minister Jairam Ramesh to be "pragmatic" and not "dogmatic" in his approach towards the mega-project.

Patnaik, however, maintained that Posco did not figure in his discussions here with Finance Minister Pranab Mukherjee. He said he raised issues related to the new Mining Bill being considered by an Empowered Group of Ministers headed by Mukherjee.

"I would like to see some changes in the present Mining Bill... It should benefit the locals, the tribals. Orissa is a mineral-rich state," Patnaik said without elaborating on the changes he suggested to the Finance Minister.

The Steel Minister last week said that vital projects like Posco's proposed steel plant were hanging fire due to the "unfortunate" presence of activists in committees like the MoEF's fact-finding panel and remarked, "What else could be expected?"

He was referring to three activists in the four-member panel -- Uma Pingle, Devendra Pandey and V Suresh -- who have opposed the Korean steel giant's proposed Rs 54,000 crore project at Jagatsinghpur, in Orissa.

The South Korean steel major had proposed to install a steel plant in Orissa, based on its sophisticated Finex technology, at an estimated investment of Rs 54,000 crore.

It had entered into a pact with Orissa government for the purpose in 2005. However, since then, the proposed venture has been bogged down by delays in land acquisition.

The project suffered another jolt after the MoEF halted the land acquisition process in August, citing violation of environmental norms. Subsequently, it set up a fact-finding committee to evaluate whether the project should be permitted.

"I certainly hope it shall happen. Orissa is the most appropriate place for the project. It will benefit the people of the state," Patnaik added.