Bizodisha Bureau, Bhubaneswar, April 26, 2015 :

In a damage control exercise, Odisha government on Sunday has sought clarification from south Korean steel giant Posco whether it is still keen to set up its steel plant at Paradip or not.

“Under the provisions of the new law, it’s Posco which has to clarify on what conditions it will set up its industry here and whether it will participate in the e-auction or not. It should make its stand clear and have discussions with the Odisha government,” said Odisha Steel & Mines Minister Prafulla Mallick here today.

Odisha, which had emerged as the most favourite destination for investment from both domestic and foreign players, is now faced with big giants opting out of their proposed investment plans due to several reasons. The state government particularly faces the charges of complacency and disinterestedness in facilitating these big ticket projects.

In 2013, ArcelorMittal, the world’s biggest producer of the alloy, pulled out of its six million ton per annum steel plant project at an estimated cost of Rs 40,000 crore, citing delays in getting permits.

Now that Posco is also planning to move out of the state, the state government has been put in a fix, which is evident from the minister’s statement. “The Odisha government is ready to do its bit to ensure that Posco is not starved of raw material as it has done in the case of others”, the steel minister asserted.

“Wherever raw materials are not available, we have made alternative arrangements through long-term linkage for supply of raw materials through OMC. If Posco wants, we will do that for them too. We are providing raw materials to end-user industries from the 50% of the produce that we are getting from non-captive mines and ores mined by the OMC. That we can provide to Posco proportionately if it so desires,” Mallick told the media.