Mines ordinance to hit Posco project, says Odisha minister

Published: January 20, 2015 3:48 AM

The Odisha government on Monday said the MMDR Act Amendment Ordinance, 2015, would affect the Posco-India project, the largest FDI in the country.

The Odisha government on Monday said the MMDR Act Amendment Ordinance, 2015, would affect the Posco-India project, the largest FDI in the country.

With the MMDR Act Amendment Ordinance, 2015, the fate of Posco-India’s 12 million tonne steel project in Odisha is doomed,” said Odisha steel & mines minister Prafulla Mallik.

He said the company would not get the mines as the Ordinance has made mandatory the allotment of mines through the auction route.

Speaking at the state mines ministers’ conference, convened by the Union mines minister to take the opinion of the state governments on the recent Ordinance, Mallik said the Ordinance nullifies all the earlier proposals sent by the state government.

“The Centre should keep international commitments in mind before enforcing the Ordinance”, he urged the Union minister. He said the Centre and South Korea government have a bilateral agreement to implement the Posco project.

Pointing out that the state government had signed MoUs with Posco and several other industries with promises to allocate captive mines, Mallik said these commitments should be honoured.

“The nation will be sending very wrong signals to the international investors by ignoring these commitments for supporting the raw material requirement of the project,” cautioned the Odisha steel & mines minister.

By Dilip Bisoi

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