Posco has to take a call over Odisha project: Sinha

Union Minister of State for Finance Jayant Sinha on Friday said Posco has to take final decision over its proposed $12 billion steel project in Odisha.

"That is a decision for Posco to take," he told media persons to queries over the fate of stalled project in the state.

"We are very supportive to all companies including Posco. But, all have to follow all the rules and laws of the country to set up their projects," said Sinha.

His statement indicated that Posco has to bid for mines according to the amended Mines and Mineral (Development and Regulation) Act 2015, if it wants to run the proposed steel plant at Jagatsinghpur in Odisha, said industry sources.

Notably, the South Korean steel company is yet to make its stand clear over the proposed steel project while the Odisha government has urged the Prime Minister's Office to resolve the impediments facilitating to materialize the project.

Sinha, who held a meeting with Chief Minister Naveen Patnaik and other officials of the government, also assured to cooperate with the state for carrying out various development projects.

He said the central government would assist the state government in providing fund for accelerated irrigation programmes, setting up new medical colleges and development of backward districts.

With the state raising the issue that the central government has stopped and slashed fund in various social programmes, Sinha said Odisha would get additional 10 percent fund following the recommendations of 14th Finance Commission that can be used for planning state specific programmes.

He also slammed the opposition Congress for obstructing Goods and Services Tax (GST) bill in Rajya Sabha and sescribed it as a big blow to the Indian democracy and economy.

"Congress is using every possible excuse to stall the GST Bill, which is affecting the economy of the country. The opposition party was raising unnecessary issues including (former IPL chief) Lalit Modi, (union minister) V.K. Singh, and intolerance issues, which have no basis, only to obstruct in passing the Bill," said Sinha.

He said the state's ruling Biju Janata Dal has already indicated in parliament that they are in support of GST Bill.

With the global economy facing slow down, he said India's economy, which was in a difficult situation when NDA assumed charge, is at very good health under the leadership of Narendra Modi government, and the country would withstand the global turmoil due to robust macro economy management.

Admitting that commodity sector including steel and metal in the country have been impacted due to global slowdown, he said these issues needs to be dealt with for growth of the sector.