When contacted Posco’s chief Delhi representative Vikas Sharan said “ We are eagerly awaiting the recommendation from Orissa government to central government with regard to prospecting licence of Kandhadhar mines.” He further said that he was hopeful that it would be sent shortly. There were as many more than 150 applicants for the Kandhadhar mines. Following the signing of the MoU in 2005 and in 2006 the state government asked the Centre to grant licence to Posco to carry out prospecting over 6000 hectares of the said mines. But the Centre asked the state to re-consider its recommendation.

Now, even the Prime Minister’s Office has expressed its anguish over the delays in the South Korean giant’s project and has asked the state government to expedite clearances for the same.

In October last year, the state government asked the applicants to submit their papers by the end of the month. There were initially 290 applicants for the mines. The key applicants included Kudremukh Iron ore Company Ltd (KIOCL) and the Jindals. Reports say that the Naveen Pattnaik government has completed the public hearing on the issue recently and is likely to recommending PL for Kandhadhar mines to Posco again.

The Korean steel giant’s problem in Orissa is not limited to Kandhadhar alone. It is understood to be waiting for various clearances for three years after inking the MoU. The arduous wait for for its proposed project has begun reflecting on it.

“May is a month which tests our endurance,” Posco India chairman and managing director Soung-Sik Cho said the company’s in-house newsletter recently. “It signifies a long wait, amidst soaring temperature and sweltering heat, for the cool rains and lovely smell of wet-earth. For our project also, this month is going to be one of patience, perseverance and enduring hope,” Cho said.

“This month we await the re-recommendation of our PL by the Orissa government. We await the clearance for its case to the Centre for grant of prospecting licence for iron ore mines; diversion of forest land for the steel plant site; clearance for water-supply pipeline; and acceptance of the benefits of the project by all the people in the proposed site-area. “Though it is a difficult month for us, I advise the prudent use of time for polishing future plans and systemisation of all current process. We should keep up active communication with our stakeholders through media campaigns, seminars, village-level meetings etc to prevent the weeds of doubts and misconceptions from creeping in on our meticulously prepared ground,” the Posco CMD said.

The State is yet to recommend the company’s application for grant of prospecting licence. The matter pertaining to diversion of forest land in the area earmarked for the steel plant in Jagatsinghpur district is pending before the Supreme Court, and the next hearing is likely to take place next month. Out of the 4,004 acres required by the company for the steel plant, forest diversion clearance was required for 3,097 acres. The State government has not been able to hand over any land to the company so far, primarily due to opposition from the local people.