Orissa to move SC challenging Orissa HC order on Posco

The Orissa government today decided to move the Supreme Court against the Orissa High Court`s recent order setting aside its decision of granting of the Khandadar iron ore mines in favour of South Korean steel company Posco.

Bhubaneswar: The Orissa government today
decided to move the Supreme Court against the Orissa High
Court`s recent order setting aside its decision of granting of
the Khandadar iron ore mines in favour of South Korean steel
company Posco.

"We will file a special leave petition challenging the
Orissa High Court order setting aside the state government`s
recommendation for prospecting license in the Khandadhar iron
ore mines in favour of Posco," Steel and Mines Secretary Manoj
Ahuja told reporters here.

Noting that the SLP would be filed by end of this
month, Ahuja said the state government had every right to
recommend the name of any company for PL in any mine under the
Mines and Mineral (Development and Regulation) Act.

Besides setting aside the state`s recommendation in
favour of Posco, the high court in its July 14 order had also
observed that Orissa`s mineral policy was in a `mess`.

The state government in 2009 had recommended to the
Centre to issue prospecting licence for the Khandhadar mines
to Posco which has proposed to set up a 12 MTPA steel plant at
an investment of Rs 51,000 crore.

A high court bench had directed the state government
to reconsider its recommendation after a petition was filed
opposing grant of the mines to Posco.

The state government`s bid to hand over the rich iron
ore deposits at Khandadhar in Sundergarh district had faced
opposition from the beginning with several other interested
parties opposing Posco.

The Centre had taken note of the procedural lapses
committed by the state government and asked it to follow
procedures laid out in the Mines and Minerals (Development and
Regulation) Act, 1957, and related rules.

PTI