Fate of Posco Uncertain in Odisha

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Bhubaneswar, April 27: The fate of South Korean steel major Posco is uncertain in Odisha after the Centre passes a new mining law. The state government has asked the firm to clear its stand on the proposed plant in Paradip.

According to new law, Posco has to clarify why it wants to set up a steel plant in Paradip and whether it will participate in the e-auction process.

Talking to newsmen yesterday evening, Odisha steel and mines minister Prafulla Mallick said that the government will arrange alternative route through long-term linkage for the supply of raw materials through OMC to Posco if it establishes its industry here in Odisha.

The entire episode developed after Centre rejected state government's plea to consider the case of Posco and make it out of the bidding process as per the discussion with the UPA government. The Centre replied the state that Posco has to take part in the auction process to avail iron ore from Odisha under the new law MMDR Act.


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