Govt recommends Kandhadhar mines to POSCO

Bhubaneswar, Jan 06: Orissa Gana Parishad (OGP) today allegedirregularities and bungling in recommending Kandhadhar mines in favourof South Korea steel major POSCO and demanded an inquiry into theincident by the Centre.

OGP President Bijaya Mohapatra said there had been a conspiracy tohandover the Kandhadhar mines to the POSCO even before the companysigned the MoU with the state government to set up a 12 MTPA steelPlant.

He told the newsmen that along with the Kandhadhar mines, thestate government had also recommended Lusi and Bhutida mines in favourof POSCO, which were returned by the Centre during 2001.

Mr Mohapatra said the POSCO signed the MoU on May 22, 2005 and three days later applied for prospecting license for the mines.

Though there were 130 applicants for the Kandhadhar mines, thegovernment had recommended in favour of POSCO by citing special reasonsand relaxing provisions and ignored other applications.

Stating that the state's valuable property should not be handedover to POSCO, the OGP President demanded that all those officers whohad connived with the POSCO in recommending the Kadhadhar mines betaken to task.

Mr Mohapatra also expressed his surprise over such decision ofstate government, when the company is yet to start any field work andacquire land for the project.

He further alleged that the state government had suppressed thefact that the Kandhadhar mine was spread over 62 sq kms whilerecommending it in favour of the POSCO to the Centre.

The rich mine which has a deposit of nearly 600 million tonnes ofiron ore could fetch the state government a whopping Rs 1.40 lakhcrores.

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