POSCO, the world’s third-largest steel maker, wants to mine iron ore in eastern Orissa state’s iron ore-rich Sundergarh district for the proposed steel plant, which aims to have a capacity to produce 12 million tons of steel a year.

POSCO’s proposed project is India’s biggest foreign direct investment proposal, but it has been delayed by more than three years due to protests by farmers who fear losing their livelihood and green worries.

In July, a lower court in Orissa had asked state government authorities to review their decision to recommend POSCO for a mining concession, after a local company, also seeking a mining concession, challenged the move.

On Friday, the Orissa government filed a petition in the Supreme Court, saying the lower court’s order be set aside and POSCO be given the mining concession.

“(A) petition has been filed in Supreme Court today,” Orissa’s steel and mines minister, Raghunath Mohanty, told Reuters.

“The recommendation of the Khandadhar mines in favor of POSCO was done as per the MMDR (Mines and Minerals Development and Regulation) Act and there was no violation.” The proposed steel mill is still awaiting environmental clearance, with a decision likely next month. The litigation over the mining concession is unlikely to hold back the start of the mill’s construction once the green nod is given.

Mining licenses in India are granted by the federal government in New Delhi after considering the recommendation of authorities in the state government.

Last year, the Orissa government recommended Posco India to the federal government for prospecting on more than 2,500 hectares in the Khandadhar region in the state’s iron ore-rich Sundergarh district.