Bhubaneswar, Nov 16 (IANS): The Odisha government has asked Bhushan Steel Ltd. (BSL) to clarify its intention within 15 days on the setting up of a steel park around its steel project in Meramundali in Odisha's Dhenkanal district.

"Whether or not you will implement the project? If yes, the timeline for implementation of the project as well the milestones already achieved may be intimated," the Odisha Industrial Infrastructure Development Corporation (IDCO), the nodal land acquisition agency, wrote in a letter to BSL Saturday.

IDCO wrote the letter after the company did not show any interest in acquiring land in six villages for the proposed project even after repeated reminders.

BSL had earlier requested the state government to acquire land for the proposed project.

After receiving the request, the Odisha government issued a notification in July 2013 for land acquisition as per the provisions in the Land Acquisition Act, 1894.

Certain statutory formalities, including deposit of amount for compensation as per the act, are required to be fulfilled.

However, the company has not responded to repeated reminders from IDCO to deposit Rs.263 crore as compensation. As a result, further proceedings of land acquisition have been held up.

"Intimate whether or not intent to go ahead with the land acquisition for the said private land of 1061.104 acres in six villages under Hindlo tehsil. Deposit Rs.263 crore for compensation and different charges of IDCO," the letter said.

BSL is presently operating 5.6 million tonnes per annum (MTPA) integrated steel plant, and plans to set up a new 7 MTPA pellet plant at the company's existing premises in Dhenkanal.

A BSL official said the company will comment only after receiving the letter.