Posco India may be celebrating conditional clearances to its steel plant and port projects, but its worries are far from over, with the issue of captive iron ore mines?key to the 12 mn tonne steel project? yet to be resolved.
The state government had recommended prospecting licence for 2,500 hectare of the Kandadhar mines in Sundergarh district to Posco, but the move landed Posco in court. Both Posco India and the state government are now fighting the case in the Supreme Court as the Orissa High Court, in its order on July 14, 2010, has cancelled the state government?s decision to recommend the mines in favour of Posco.
While the Orissa government is being represented by senior counsel Raju Ramachandran and advocate Shibashis Mishra, Posco India is represented by senior counsel KK Venugopal with advocate on record being Fox Mandal & Co. Geomin Minerals is being represented by senior counsel Harish N Salve, Mukul Rohtagi, Abhishek M Sanghvi and Rohinton F Nariman while the advocate on record is Suresh A Shroff & Co.
The Orissa High Court has directed the state government to reconsider the claims of other applicants for the mines. A division Bench of the court comprising of justice BP Das and justice BP Ray has directed the state government to hear all the applications for the mines once again and take a fresh decision on the mines within four months. According to the standing counsel for state steel & mines department, Srikanta Nayak, ?The court has observed that the ?relative merits are insufficient? in deciding in favour of Posco-India.?
Posco India and the state government have filed special leave petitions (SLP) separately in the SC challenging the high court order. The Geomin Minerals & Marketing, which had challenged the state government?s decision in the HC, has also moved to the apex court through a SLP.
Orissa has invoked Sections 11(3) and 11(5) of the Mines and Minerals (Development and Regulation) Act 1957, to recommend the Khandadhar PL in favour of Posco India. The state government in its petition in the apex court has said the area had been notified and hence it could dispose of the applications and recommend PL cases based on merit. The government has given the Posco project preferential treatement and recommended its case for PL, even though there were other applications before Posco, the government has mentioned in the SLP. The high court has rejected the recommendation on the ground that the Kandadhar mines was a non-notified area. The apex court while issuing notices to all the three parties has directed to maintain status quo.
?We have filed an SLP in the SC, now we are waiting for the court order in this regard,? the state steel & mines minister, Raghunath Mohanty, told FE.
?Notwithstanding the green clearance to the steel project and the captive port project, it is the Kandadhar mines which is going to decide the fate of Posco India?s steel project in Orissa. Posco is linking the captive iron ore mines with the steel project in Jagatsinghpur, the official said.
