The Union Government on 9 April 2015 rejected the Odisha Government proposal to grant mining license to South Korean steel major Posco which needed mining license for its proposed 12 billion US dollar mega steel plant at Paradip in Odisha.
In response to the proposal, the Union Government asked Odisha Government that Posco, like others, will have to take part in the open auction to get Khandadhar or any other mines.
Union Government rejected the state government’s proposal in accordance to the Amendment of Mining and Minerals Development and Regulation (MMDR) Act, 1957 that was passed by the Parliament in March 2015. The amendment says that all leases shall be granted through auction by competitive bidding, including e-auction.
Earlier, Naveen Patnaik, the Chief Minister of Odisha, requested the Union Government to exempt Posco from the auction process.
The request was made in respect to the commitments that was made to the company by the Union and State governments. Posco was previously promised by the Odisha government for the Khandadhar iron ore mine in Sundergarh district for its mega steel plant.
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