The BJP on Monday raised a stink over recommendation of mining lease to South Korean steel major Posco for their proposed project in Orissa, alleging that the lease violated the model code of conduct. “The Chief Minister passed orders for allotting mines to Posco over an area of 2,500 hectare in Khandadhar hill in Sundargarh district on April 19, three days prior to the second phase of polling, though the model code made it clear that no major decisions can be taken in that period,” said BJP leader Bijoy Mohapatra. “The EC should stay operation of the order and take appropriate actions against all officials, ministers and the CM,” state BJP president Suresh Pujari demanded.

Posco had signed a deal with the state Government in June 2005. Though Posco is yet to start work due to resistance from villagers in the area, the state Government allotted over 2,500 hectare of iron ore to the company.

“The iron ore reserve in the allocated area will be nothing less than 200 million tonne as per Government estimates. At current market rate, the total value of the ore will be around Rs 40,000 crore,” said Mohapatra. However, state Steel and Mines Minister Pradeep Amat dismissed the BJP’s allegations.