Without informing about its plan, Posco-India had also earlier told the National Green Tribunal (NGT) that its proposal for setting up the mega steel plant project in Paradip could not proceed due to legal hurdles.
had said that Posco-India had not in clear terms conveyed that it would not set up steel plant in Odisha.
"However, we came to know from the media that the south Korean steel major had decided to keep the Odisha project on hold," Mallick said.
Without informing about its plan, Posco-India had also earlier told the National Green Tribunal (NGT) that its proposal for setting up the mega steel plant project in Paradip could not proceed due to legal hurdles.
As the steel major had not made any formal communication with the state government about its plan, the present letter is considered as the first such move for scrapping of the project. Earlier, another FDI investment worth Rs 40,000 crore by ArcelorMittal was withdrawn from Odisha in 2013.
Posco-India had signed an agreement with the state government in June 21, 2005 for setting up its mega steel facility near Paradip. The company then sought 4,004 acres of land for the project.
However, later the company changed its plan and wanted only 2,700 acres for setting up a 8 mtpa plant in the first phase in wake of the stiff opposition to the land acquisition.
The state government in the first phase had transferred 1,700 acres of land to Posco-India.
However, the uncertainty over the Posco-India's project started when the Centre amended the Mines and Minerals Development and Regulation Act in January, 2015. The amended Act made it mandatory for all companies, including Posco-India, to go through the auction route in order to get captive mines.
The steel major had also not taken any step to renew its MoU with the state government, which expired in 2010 after a gap of five years.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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