Posco plans hit hurdle in Orissa High Court

Posco India’s troubles refuse to go away. The world’s fourth-largest steelmaker’s India plans got another jolt on Wednesday when the Orissa High Court rejected the state government’s recommendation to hand over Khandadhar iron ore mines to the South Korean steel major,which is planning a 12 million tonne,$12-billion project in the state.

The verdict,which is most likely to be appealed in the Supreme Court,will set back Posco India’s project further,already delayed by five years and mired in land acquisition problems. In fact,the government had just stepped up its efforts on the land acquisition front,persuading farmers to part with 4,004 acres of land needed for the project.

The iron ore mines lease would have ensured that the steel major had the back-end in place before it actually gets down to building the project. The court,instead,directed the government to reconsider the claims of other applicants for the mines.

According to analysts,even after a prospecting licence is granted,it takes at least three to four years to start mining.