Bhubaneswar, April 27: The BJP today criticised the state government's handling of issues related to the setting up of an eight-million-tonne plant by South Korean steel major Posco in Paradip.

"Contradictory statements are coming from the government on the proposed Posco project," senior BJP leader Bijoy Mohapatra said today.

Demanding that the government make its stand clear on the project, Mohapatra said: "Chief minister Naveen Patnaik should issue a statement on what compelled the company to ask for details of the use of money it claims to have provided for the land acquisition purposes."

Odisha Industrial Infrastructure Development Corporation (Idco) has acquired 2,700 acres for the project, including 438 acres of private land, at the proposed site for the Posco project. However, only 1,703 acres has so far been handed over to the company. Also, a tussle is on between Posco and the state government on the cost of land acquisition at the project site near Paradip.

On behalf of the state government, Idco has demanded Rs 54 crore from the company as premium for the land acquired. Posco, in turn, sought from the state government details of the use of money it claims to have already provided for the purpose.

Sources said Posco had deposited around Rs 32 crore with Idco as advance payment for land acquisition.

Mohapatra said: "It's really unfortunate that the government has failed to do anything to set up the industry over the past decade. Even though the MoU expired in 2010, no efforts have been made to renew it."

He sought to know from the government whether the land acquired by Idco in Paradip was meant for Posco or for a steel plant to be set up by any other company.

"There is total confusion. The government has least interest in the industrialisation of the state," he said.

Steel and mines minister Prafulla Mallick said: "The state is keen on Posco setting up its plant in Odisha. However, with Mines and Minerals (Development and Regulation) Amendment Act, 2015, coming into force, the company has to participate in the open bidding for the Khandadhar mines. We cannot do any thing on this front."

The minister said the state had already requested the Centre to treat Posco as a special case, but it had already made it clear that the company had to participate in the open bidding.

Industry minister Debi Prasad Mishra said: "Land has already been acquired for the Posco project. The company has to decide whether it will set up its plant here or not. But the state government is committed to provide an industry-friendly climate to the company."