Assembly

Bhubaneswar, June 25: The government today faced Opposition flak for recommending the names of six steel firms to the Centre for iron ore mine grants.

The Opposition fumed that the recommendations were made without any proper check, made by a committee of experts. The angry members also staged a walkout in protest, as the government rejected its demand for the constitution of a House committee to probe into the matter.

So far, the government has recommended six names, among 46 firms who applied for mining lease, to the Centre. Of them, three — Sree Metaliks, Adhunik Metaliks and Deepak Steel — have been granted leases. Mineral concession applications of three others (Posco India, Action Ispat and SMC Power & Steel), forwarded by the state are now awaiting the final nod from Centre.

According to the norms set by the state, a company becomes eligible for a lease only after achieving certain milestones such as completing certain financial arrangements, investing at least 50 per cent of the total project cost, completing land acquisition and reaching the production stage.

Moving an adjournment motion senior Opposition members, including Satya Bhusan Sahu, alleged that the government had recommended six companies without verifying whether they have really achieved the required milestones.

They accused the government of showing undue favour to private companies including South Korean steel major Posco. Much to the discomfort of the government, former ministers and senior BJD leaders Damodar Rout and Ranendra Pratap Swain, and senior BJP member Mahesh Sahoo, joined the Opposition in criticising the government.

Responding to the debate, steel and mines minister, Padmanabha Behera said the state government had decided to engage a few renowned companies such as Mecon, MN Dastur and Co and Engineers India Limited to scrutinise the applicants. Mecon and MN Dastur, he added, have sent their quotations, which are under consideration.