Bhubaneswar, Dec 9 (IANS): A total of 35 steel making companies have started production in their projects in Odisha, state Steel and Mines Minister Prafulla Mallick said on Friday.

Replying to a written question, Mallick informed the Assembly that out of 49 companies which have signed memorandums of understanding with the state government, 35 have started production.

The minister said that two companies -- Arcelor Mittal and Maharashtra Seamless Ltd -- have withdrawn from their projects.

Posco has also not made any progress in setting up its $12-billion steel plant, even though the state government has allocated 1,880 acres of land in Jagatsinghpur district of the state, said Mallick.

Posco India, touted as the country's largest foreign direct investment (FDI), which is mired in controversy for the last nearly 11 years, has put the project on hold.

In reply to a separate question, the minister said the government has seen media reports that Posco has temporarily put the project on hold.