By Our Correspondent
New Delhi, January 20, 2015

The Prime Minister Narendra Modi on Tuesday assured Posco chief executive Kwon Oh-Joon, Posco India chief Gee Woong Sung and South Korea’s ambassador Joon-Gyu Lee a speedy expedition of approvals.

Posco officials reportedly briefed him on the company’s plans in Maharashtra and Gujarat besides the Odisha steel project that has experienced inordinate delays spread over the last one decade.

The Korean steel major has apparently been waiting for a ‘no objection’ from the government for its plan to mine iron ore in Khandadhar and setting up the 12 million tonnes steel plant at Jagatsinghpur.

While the company has been waiting for a ‘go ahead’ to source iron ore from Khandadhar mine, the mines and minerals (development and regulation) ordinance has apparently put Posco in a piquant situation.

As per the mines ordinance, the company will have to bid for the mine, as it has not yet been issued the mining license pending clearance from the centre.

However, officials privy to the meeting between Modi and Posco officials said that the centre would abide by all its international commitments including assured mining licences for Posco to source iron ore from Khandahar mine.

The clearance for mining rights is crucial, as it would give Posco the confidence to commence work on eight million tonne steel plant during the first phase.

The company has already acquired substantial portion of 2,700-acres land required (state has already completed acquisition but physical possession of some patches remain) for the project and it was awaitingclearance for iron ore mine before committing investment.