"The state government has not received any communication regarding Posco's plan of putting Odisha project on hold. We are optimistic about implementation of Posco's 12mtpa mega steel plant near Paradip," Steel and Mines Minister Prafulla Kumar Mallick told reporters.

The Odisha government has earlier made its stand clear on the Posco project, Mallick said, adding, the state continued to demand making special provision of supplying raw material to Posco plant considering it as an international commitment.

"The state government had made recommendation in favour of Posco for getting Khandadhar iron ore reserve much before the new MMDR Act came into the force this year. Therefore, the company should be provided the raw material linkage as per the previous provisions of the MMDR Act," Mallick added.

Asked whether the Posco's decision to put its Odisha project on hold would not affect the ongoing industrialisation process in the state, Mallick stated, "Out of 49 MoUs, so far 32 have been executed. And we hope that the remaining projects will see the daylight soon."

Posco-India which entered into a pact with Odisha government on June 22, 2005 for the plant, however, faced trouble in land acquisition and other legal problems leading to delay in implementation of the project.

In a fresh blow to the company this year, the Centre has said Posco would now have to participate in auction to get iron ore mines to feed its facility instead of direct allotment as assured earlier by the state government in its MoU in 2005.

Latest News  from Business News Desk