The Supreme Court has refused to stay for now an Orissa High Court judgment cancelling the state government’s clearance to Posco for a licence to scout for and mine iron ore.
The high court order had come on a petition by a Bhubaneswar firm that claimed the state’s decision was “illegal” and “irrational” as the South Korean giant had been cleared out of turn.
The licence would have allowed Posco to explore and mine ore in the Kandadhar hills in Sundergarh district.
The apex court today directed all parties involved in the case to maintain status quo and issued notices to the Centre.
Naveen Patnaik’s government had sought an immediate stay saying the order could jeopardise Posco’s plans to set up a steel plant in the state.
The high court had held that the local firm, Geomin Minerals, should have got preference on the licence as it had applied in 1991, 14 years before Posco did.
The state claimed that its recommendation in favour of Posco did not violate the Mines and Minerals (Development and Regulation) Act, 1957, as the high court had concluded.
The act, the state argued, allowed it to make exceptions depending on the scale of the investment and the company’s profile.