Introduction
POSCO INDIA, THE SUBSIDIARY OF THE SOUTH KOREA HEADQUARTERED COMPANY PRODUCES STELL SHEETS TO MEET THE DEMANDS OF THE AUTOMOBILE COMPANIES.
IN THIS CASE THE SOUTH KOREAN STEEL COMPANY, POSCO ALSO KNOWN AS THE POHANG STEEL COMPANY, HAD SIGNED A MEMORANDUM OF UNDERSTANDING (a MoU) WITH THE STATE GOVERNMENT OF ODDISHA IN THE YEAR 2005 WHICH WAS MADE AS DEAL WITH THE GOVT TO CONSTRUCT A STEEL PLANT AS WELL AS THE DEVELOPMENT OF IRON ORE MINES IN THE STATE. ANOTHER MOTIVE WAS TO CONSTRUCT PORT INFRASTRUCTURE IN THE REGION WHICH WAS TO ESTABLISHED AS IT WERE TO BE USED AS A STORAGE YARD FOR COKING COAL AND FOR OTHER ASSOCIATED FACILITIES.

ACCORDING TO THE MoU BETWEEN THE TWO PARTIES, THE FIRM , POSCO WAS TO BUILD A 3 MILLION TON CAPACITY STEELS PLANT WITH A BLAST FURNACE OR A FINEX ROUTE WHICH WOULD BE SET UP BY THE FIRST PHASE IN PARADEEP WHICH WAS IN ODISHHA WITHIN THE YEARS 2007 TO 2010 AND AFTER SETTING UP THE INDUSTRY THEIR AIM WAS TO EXPAND THE CAPACITY TO AS MUCH AS TWELVE MILLION TONS. THE INVESTMENT REQUIRED WAS US$12 BILLION WITH ANOTHER INITIAL INVESTMENT WORTH USD$ 3 BILLION WHICH WAS TO BE SPENT IN THE FIRST PHASE OF SETTING UP THE PROJECT. THE GOVERNMENT OF ODISHA GAVE A THIRTY YEAR LONG LEASE TO POSCO INDIA WHICH WOULD ENSURE A STAEDY SUPPLY OF OVER 600 MILLION TONS OF IRON ORE TO POSCO. THIS WOULD MAKE THE OPERATIONS OF POSCO INDIA STEEL PLANT, VERY COMPETETIVE. THE GOVERNMENT ALSO DECIDE TO PROMOTE ITS PLANS FOR THE CONSTRUCTION AND DEVELOPMENT OF RAILWAYS,ROADS, INDUSTRIAL WATER AND ELECTRICITY WHICH WOULD HELP IN KEEPING UP WITH THE CONSTRUCTION PLAN THAT POSCO HAD IN MIND.

BUT THERE WERE MANY SIDEAFFECTS HAD THE CONSTRUCTION OF THIS PLAN TAKEN PLACE. IT WOULD HAVE A ADVERSE AND A NGATIVE IMPACT ON THE PEOPLE, THE FLORA & FAUNA OF THE REGION AS IT NEEDED A DESTRUCTION OF THE NATURAL HABITATS. EVEN THOUGH PEOPLE OF THE REGION PROTESTED AGAINST THIS, THE GOVERNMENT TURNED A BLIND EYE AND IGNORED THEM COMPLETELY AND WEN ABOUT IN FULFILING THIS PROJECT. IT ALSO DANGLED THE CARROT AND PROSPECT OF EMPLOYMENT GENERATION. IN THE YEAR, 2007, THE UNION MINISTRY OF FOREST AND ENVIRONMENT, THE MoEF , INITIALLY PROVIDED THEIR CLEARNCE FOR THE STARTING OF THIS PROJECT . THEY ALSO PROVIDED CLERANCE FOR THE CONSTRUCTION OF THE PORT AT THE JATADHARI MOUTH IN THE JAGATSINGHPUR DISTRICT WHICH FACED A LOST OF PROTEST ON THE GROUNDS OF ENVIRONMENT SAFETY.

EVEN AFTER SUCH PROTESTS, A FINAL APPROVAL WAS GRANTED BY THE GOVERNMENT BUT JUST A YEAR LATER THE GIVEN APPROVAL WAS QUASHED BY A SEMI-JUDUCIAL BODY CITING ENVIRONMENTAL CONCERNS AS THIS PROJECT WOULD HARM THE ENVIRONMNET, THE FORESTS, ITS FLORA AND FAUNA IN VERY BAD WAY. LATER ON IN THE YEAR 2014 IN THE MONTH OF JANUARY THE SAME YEAR, THE MINISTRY OF ENVIRONMENT AND FORESTS ISSUED A FRESH CLEARENCE FOR THIS STEEL PLANT, BUT THEY PLACED A CONDITION THAT THE FIRM WOULD HAVE TO SPEND CLOSE TO 5 PERCENT OF THE TOTAL INVESTMENT ON “ENTERPRISE SOCIAL COMMITMENTS. THE SUPREME COURT THEN SET ASIDE THE ORDER IN WHICH IT HAD QUASHED THE STATE GOVERNMENT’S PETITION TO ALLOT THE LISENCE TO POSCO INDIA TO MINE IRON ORE IN THE KHANDADHAR HILLS IN THE SUNDERGARH DISTRICT OF ORRISA WHICH WAS FOR A MULTI-CRORE STEEL PLANT.

A BENCH HEADED BY JUSTICE R M LODHA QUESTIONED THE CENTRE ABOUT ALL THE OBJECTS THAT HAD BEEN RAISED WITH RELATION TO THE SETTING UP OF THE MEGA STEEL PLANT AND A DECISION WAS TO BE TAKEN IN THIS REAGRD. THE COURT AFTER HEARING THE CROSS APPEALS FILED BY THE STATE GOVERNMENT, A MINE AND A MINERAL COMPANY CHALLENGED THE ORDER OF THE ORRISA HIGH COURT WITH REGARD TO THE ISSUE OF IRON ORE MINES TO POSCO INDIA AS IT HAD BEEN DENIED TO OTHER FIRMS IN THE PAST.

BEFORE, THE GOVERNMENT OF ORRISA AND GEOMIN MINERALS AND MARKETING LTD HAD CHALLENGED THE COURT WHICH HAD REJECTED THEIR PEITION FOR LAND BUT WERE READILLY HANDING OVER LAND TO POSCO INDIA FOR IRON ORE MINING PURPOSES. THE HIGH COURT, ON 14TH DAY OF JULY 2010 ON HEARING THE PETITION SET FORWARD BY THE GEOMIN MINERALS HAD SET ASIDE THE GOVERNMENT’S DECISION. GEOMIN MINERLS PUT FORWARD ITS PROTEST THAT IT HAD REQUESTED FOR LAND IN THE KHANDADHAR HILLS LONG BEFORE POSCO HAD EVEN THOUGHT ABOUT THIS AND THEY HAD BEEN DENIED THE LAND THEY WANTED FOR MINING OF IRON ORE. THE HIGH COURT IN THIS REAGRD HAD SET ASIDE THE DECISON ISSUED BY THE STATE GOVERNMENT IN 1962 RESERVING ALL MINERAL BEARING LAND FOR EXPLOITATION WITHIN THE STATE OF ORRISA AND A PROPER FRESH DECISION WAS TO BE TAKEN IN THIS REGARD. ANOTHER VERDICT OF THE HIGH COURT WAS THAT THE LAND THAT WAS RICH IN MINERALS UPTO THE YEAR 1987 WHICH WAS WITHOUT TEH APPROVAL OF THE UNION GOVERNMENT WAS NOT TO BE DEEMED TO BE EVER BEEN RESERVED. THEN THE ORRISA GOVERNMENT MOVED THE SUPREME COURT IN THIS REGARD HAD CONTENDED TO THE FACT THAT THE HIGH COURT DID NOT HAVE THE POWER TO QUASH THE LISENCE AWARDED TO POSCO IN THE FIRST PLACE AS IT WAS UNDER THE SECTION 11 (5) OF THE MINES AND MINERALS (DEVELOPMENT & REGULATION ) ACT OF 1957.

AFTER THIS THE ORRISA GOVERNMENT AGAIN CONTENDED TO THE FACT THAT THE SECTION 11 (5) GIVES POWER TO THE STATE GOVERNMENT TO “GRANT A RECONNAISSANCE PERMIT , A PERMIT OR A MINING LEASE AS THE CASE BE “ TO ANY APPLICANT WHOSE APPPLICATION WAS RECEIVED LATER IN PREFERNCE TO THE APPLICATION OF WHOSE APPLICATION WAS RECEIVED EARLIER. THEN THE STATE GOVERNMENT IN THE MONTH OF JANUARY, YEAR 2009, RECOMMENDED THE COMPANY, POSCO TO THE UNION GOVERNMENT AND REQUESTED FOR PROVIDING THE LISENCE TO POSCO TO MINE IRON ORE IN THE KHANDADHAR HILLS OF SUNDARGARH DISTRICT, ORRISA. BUT THIS GRANTING OF LISENCE TO POSCO DIDN’T GO DOWN TO WELL WITH GEOMIN MINERLS AND ANOTHER SIXTEEN FIRMS WHO RIGHTFULLY CHALLENGED THIS RULLING AS THEY TOO HAD APPLIED FOR GETTING A LEASE FOR MINING IRON ORE AND THEY HAD BEEN DENIED BY THE GOVERNMENT SO GOW COULD THEY GIVEN A LEASE TO POSCO AND IGNORE THE OTHER FIRMS WHO HAD LINED UP TO OVTAIN A LEASE FOR MINING FROM THE GOVERNMENT OF ORRISA. THE FIRM, GEOMIN MINERALS, IN THEIR PETITION TO THE COURT STATED THAT THE HIGH COURT DOES NOT TAKE INTO ACCOUNT THE FACT THAT IT HAD LITERALLY PLEADED TO OBTAIN A LISENCE AND THE GOVERNMENT HAD TURNED A BLIND EYE TO THEM.

IN THIS WAY THE OTHER FIRMS PROTESTED AGAINST THE GOVERNMENT FOR NOT PROVIDING THEM WITH A LEASE EVEN THOUGH POSCO WHICH ENTERED IN THIS COMPETITION ALTER WAS BEING WRONGLY FAVOURED BY THE GOVERNMENT AND THE COURT.