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Move for prospecting licence to Posco opposed

BHUBANESWAR: Opposition Congress on Sunday opposed the Naveen Patnaik Government’s move to recommend to the Centre grant of prospecting licence for Khandadhar iron ore mines in favour of Posco-India.

Addressing a press conference at the Congress Bhavan here, Orissa Pradesh Congress Committee president Jayadev Jena termed the Government’s move “unfortunate”.

The Khandadhar iron ore reserve should be handed over to the State Government-run Orissa Mining Corporation for exploration, Mr. Jena demanded. “Posco should not be given captive mining lease of Khandadhar iron ore reserve at any cost.”

The OPCC president further questioned the Government’s intention in showing “undue favours” to Posco-India which plans to set a steel plant in Jagatsinghpur district at an estimated cost of Rs. 51,000 crores.

“How can the Government recommend the case of Posco-India when the South Korean company has not fulfilled the conditions laid down by the State Government itself,” Mr. Jena questioned.

As per the mining policy announced in the State Assembly, any company wanting to obtain mining lease in respect of any mines should apply for the same only after it invested 25 percent of the total project cost in developing infrastructure for the proposed project, Mr. Jena pointed out.

Posco had so far not taken possession of land for its proposed project, and it could apply for mining lease only after it spent Rs. 12,000 crores for the implementation of its steel plant plan, Mr. Jena observed.

Alleging that the Biju Janata Dal-Bharatiya Janata Party alliance government was trying its best to hand over all the mineral resources of the State to private companies at a throwaway price, Mr. Jena said the Government should stop recommending applications of various companies to the Centre for grant of prospecting licence and mining lease.

The mines should be given on lease to the Orissa Mining Corporation which should supply ore to different companies at the price prevailing in the market.

As regards BJP leader Jual Oram’s opposition to the government’s proposal to recommend Posco’s case to the Centre, Mr. Jena alleged that Mr. Oram’s opposition was only meant for “public consumption”.

“If BJP was serious about opposing the government’s move they should put pressure of Chief Minister Naveen Patnaik and pull out of the government in the interest of the State,” Mr. Jena said.

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