By Bizodisha Bureau, Bhubaneswar, August 25, 2015 : The South Korean Steel major, Posco on Tuesday once again reiterated that it would not bid in the iron ore mine auction process to feed its proposed 12 million ton per annum [MTPA] steel plant near Paradip Port in Odisha.

The world’s sixth largest steel company is understood to have conveyed its stand at a tripartite meeting of union cabinet secretary, Odisha chief secretary, other government officials and Posco representatives in New Delhi to explore options to facilitate the South Korean steel maker setting up the Rs 52,000 crore plant.

The meeting remained inconclusive after the company expressed its unwillingness to participate in the auction process of mines, sources added.

Officials present in the meeting refused to comment anything on the outcome.

During the hour-long discussion, the Posco representatives insisted that the State government must abide by the MoU it signed with the company in 2005 to supply 600 million ton raw material for the plant.

As the stalemate continues, now the focus has shifted to chief minister Naveen Patnaik’s scheduled meet with union finance minister Arun Jaitley in New Delhi in the first week of September in a bid to salvage the 12 million tonne capacity steel project proposed by Posco in the State.

The Rs 52,000 crore project, the highest FDI in the country, has not progressed much due to regulatory hurdles and local protest over land acquisition after the State Government signed Memorandum of Understanding (MoU) with Posco in 2005.

Though the MoU between the State government and Posco for establishment of the steel plant has lapsed since the last six years, it is yet to be renewed.

The State government recently reiterated that it will provide all assistance to Posco to set up the steel plant at Paradip.

“The State government is ready to provide all assistance, but Posco should seek what kind of help it wants from the government,” industries minister Debi Prasad Mishra said