Centre-State-Posco tripartite meet today

Bhubaneswar: The much-awaited tripartite meeting between the Centre, State and Posco on the country’s biggest FDI by the South Korean steel major will be held in New Delhi today.

With the Centre clarifying that South Korean steel major Posco has to go through bidding for its material linkage for proposed steel plant in the State and Odisha is ready to address the issue through long-term ore supply linkage with Odisha Mining Corporation (OMC), the State government may put forward the proposal before the Centre during the meeting.

Sources have indicated that OMC might enter into a joint venture agreement with Posco to let the steel maker operate a lease.

OMC is a state government undertaking and holds leases for 11 iron ore mines, with production potential assessed at 30 million tonne per annum (mtpa). But due to clearances and operational inefficiency, the miner is producing only around two mtpa of iron ore. It has long term supply agreements as well as provision for online auction of raw materials for steel companies.

Meanwhile talking to reporters Mallick said, “The State government wants to know the South Korean steel company’s approach towards the Jagatsinghpur project.
Let them clearly state what kind of help they want… We are ready to provide Posco long-term supply linkage for the project,” Mallick said.

The meeting follows Union Steel and Mines Minister Narendra Singh Tomar’s clarification that the South Korean steel major will have to participate in open bidding for its raw material linkage as per the MMDR Act, 2015.
Chief minister Naveen Patnaik had held a review meeting about Posco’s proposed greenfield project on August 20.