The Supreme Court on Monday sought reply from South Korean steel major Posco, the Centre, the Orissa government and others on three cross-appeals challenging the Orissa High Court order that quashed the state government?s decision to permit the multinational to mine iron ore in Sundergarh district of the state.
A Bench headed by Justice RV Raveendran while issuing notice to the ministry of mines, Geomin Minerals & Marketing Ltd, Posco and the state government asked the parties to maintain status quo till next date of hearing.
In its petition, the Orissa government challenged the high court order that quashed the state government?s recommendations for grant of prospecting licence to Posco India for the Khandadhar mines for its 12 mt steel plant near Paradip with an investment of $12 billion.
The high court, while setting aside the recommendation of the state government for allotting PL to Posco over 2,500 hectare in the Khandadhar hills on July 14, had asked it to conduct a fresh hearing of all the 226 applicants for the Khandadhar mines.
The world?s fourth-largest steelmaker?s Rs 51,000-crore mega steel project near Paradip has already been delayed by five years and mired in land acquisition problems. It had further contended that Section 11 (5) gives power to the state government to ?grant a reconnaissance permit, prospecting license or mining lease, as the case may be, to an applicant whose application was received later in preference to an applicant whose application was received earlier.?
In its appeal, Posco stated that the Act has been crafted so as to ensure that a prospecting or mining license was granted to the person or entity who is in the best position to utilise the mine in a ?scientific, eco-friendly and economically efficient manner?.
Even Geomin, one of aspiring firms for the Khandadhar mines, has challenged a part of the impugned judgment that relates to preferential rights granted by Section 11 of Mines and Minerals (Development And Regulation) Act, 1957 including the effect of amendments that came into force from December 1999. Prior to amendments, there was a prohibition that only Indian firms with majority shareholders being Indian citizens could be granted mineral concessions and that too on preferential basis.
Besides KIOCL and Geomin Minerals, there were several other applicants including Essar Steel, Jindal Photo, Jindal Strips, SSL Enegrgy, MSP Metallics, Mesco Kalinga Steel, Adhunik Metalliks, Uttam Galva Steel, Bhusan Power & Steel.