The legal battle over Posco-India?s Khandadhar iron ore mines took a new turn with Essar Steel intervening in the matter.
Essar Steel, which is proposing to put up a 6 million tonne steel project at Paradip along with a pipeline project for carrying iron ore slurry for pelletisations in the state, is one of the 226 applicants for the Khandadhar mines in Sundergarh district.
Essar Steel has challenged the Orissa government?s recommendation for granting prospecting licence (PL) to Posco-India for the 25 sq km area of Khandadhar mines. Essar has become an intervener in the case filed by Kudremukh Iron Ore Company Ltd (KIOCL) in the Orissa high court.
?We are putting up a 6 million tonne steel plant and a pelletisation plant at Paradip with an investment of Rs 20,000 crore. For the project we need captive mines. So we had submitted applications with the Orissa government suing as many as nine mines in the state,? HS Sethi, director Essar Steel (Orissa Project), told FE.
?We are one of the early applicants for the Khandadhar mines. So we want to know what is the fate of our application with regard to Khandadhar mines,? Sethi added.
Posco-India had asked for three mines and the state government has recommended to the Centre only the Khandadhar mine for prospecting licence to the company, and that too not as a lease.
The court has extended the stay order on the state government?s decision and posted the case till April 6, 2009, for hearing. The state steel and mines principal secretary, Ashok Mahadevrao Dalwai, appeared personally before the division bench of the high court on Wednesday.
The petitioners have pointed out that though the state government had heard all the 226 applicants, it is yet to dispose of the applications. When the applications are pending, how could the government recommend the PL in favour of Posco-India, wondered SK Padhi, Shanti Bardhan Mishra and other counsels for the petitioners.
Posco-India, however, is remaining neutral to the controversy as the legal battle is between the other applicants for the mines and the state government. ?We have no comment on the issue,? said Posco-India general manager SK Mohapatra.
• Essar Steel is one of the 226 applicants for the Khandadhar mines in Sundergarh district
• It has challenged the Orissa govt?s recommendation for granting prospecting licence to Posco-India for the 25 sq km area of Khandadhar mines
• Posco-India has asked for three mines of which the state govt has recommended only the Khandadhar mine to the Centre
• The court has extended the stay order on the decision and posted the case till April 6 for hearing