The government has cancelled in-principle approval given to South Korean steel major Posco for a special economic zone (SEZ) in Odisha. The decision was taken by an inter-ministerial Board of Approval (BoA), chaired by the Commerce Secretary Rita Teaotia, in its meeting on on April 28. The board examined the case for cancellation of formal approval and it noted that the progress made by the developer – Posco India Pvt Ltd – “was not satisfactory”, the minutes of the BoA meeting said.
The board also noted the vehement objections made by the resident commissioner, government of Odisha against the proposal to cancel the in-principle approval and observed that the developer was free to apply for fresh approval once it had sorted out its problems. “The board after deliberations decided to cancel in principle approval. The cancellation is subject to the DC (Development Commissioner) furnishing a certifcate…certfying that the developer has not availed any tax/duty benefits including service tax exemptions, if any…or has refunded any such benefits availed by it,” it said.
The BoA also decided to cancel the formal approval given to Lanco Solar Pvt Ltd. It had proposed to set up solar SEZ in Odisha. The board noted that the progress made by the developer was not satisfactory.