According to Posco, the Central Empowered Committee had erred in linking the diversion project for the plant and port site with that of mining and other linkages, including railway, road etc. “The present proposal for the integrated steel plant and captive port is a qualified proposal in itself having substantial description of the environmental protection and elaborate provisions for compensatory afforestation,” the application had stated, adding the investment of Rs 51,000 crore ($12 billion) was being considered as the largest ever FDI in India.

The court was informed today that the state had yesterday concluded hearing of applications for the said mines. Resource security has been one of the main concerns of the court and this commitment coming from a state government paved the way for clearance of the forest diversion proposal.

The state’s steel and mines department heard a total of 227 applications for Khandadhar mines, in one of the largest-ever hearings done till date. While one company withdrew its application, 44 others did not participate, sources said. Khandadhar was in high demand because of the high iron content in its ore. It had become controversial after public sector Kudremukh Iron Ore Company Limited (KIOCL) took the matter to the Orissa High Court.

Though earlier the state had recommended Posco for the prospecting licence in December 2007, KIOCL challenged it, which prompted the Centre to direct the Orissa government to hear all applications according to the Mines and Minerals (development and regulations) MMDR Act, 1957, before making a final recommendation. On the Centre’s directive, Orissa began fresh hearing of the mines.

... contd.