Indian government dithers on POSCO's $12 billion steel project

NEW DELHI (Scrap Monster): The Indian government has decided to further delay the decision on granting final permit to the proposed $12 billion steel project by POSCO. The Union government has now sought fresh clarifications from the Odisha State government. The project has been pending for approval for almost nine years now.

The Mining Ministry has asked the State government to furnish details as to how much of the mining land sought by POSCO was notified as an iron ore bearing area where commercial mining was allowed. The considerations for notified and non-notified areas are entirely different and the Central administration needs to have a clear picture before the final approval is granted.

Meanwhile, POSCO is yet to start works on the project following stiff protests from local group against land acquisition. Furthermore, it has been waiting so long for obtaining permission to mine iron ore. According to company spokesperson, POSCO is interested to build the plant only if a definite agreement on ore supplies is reached.

Earlier, the South Korean steel giant had signed of a fresh MOU with the State Government of Odisha for the protests-marred proposed steel plant. The steel major had signed the MOU with Odisha Government, way back in 2005, which had expired in 2010.