Renewal of Posco’s MoU with Orissa hangs fire
08 Jun 2011
A high-level meeting of the Orissa government to consider renewing the lapsed memorandum of understanding (MoU) between the state government and Posco India, an arm of the Korean steelmaker, for its proposed mega-project in the state remained inconclusive yesterday.
During the meeting, chaired by chief secretary B K Patnaik, it was decided to consult Posco before recommending a revised MoU to chief minister Naveen Patnaik.
"Only a preparatory meeting was held on Tuesday, and no decision was taken. The conditions in the original MoU (signed in June 2005 and expired in June last year) have been examined and the departments concerned asked to give their reports within 15 days.
''For instance, IPICOL (Industrial Investment Promotion Corp Ltd) will examine the revised proposal of Posco India to build the 12-million tonne per annum (mtpa) steel plant in three phases of four mtpa each. The chief minister will take a final call on the matter," Patnaik told journalists.
Posco's project in Jagatsinghpur district of the state, billed as the largest single foreign direct investment in India, has run into trouble almost from the start due to environmental and local protests. While the union environment ministry has finally cleared it, protests on the ground continue.
On jobs, Patnaik said Posco India had to give a written commitment on adherence to the employment clause of the state government.
