Posco: MoU by month-end

BHUBANESWAR: The State Government on Wednesday deferred the deadline for renewal of the memorandum of understanding (MoU) with South Korean steel major Posco to July-end as several issues including the swapping of iron ore are yet to be sorted out.Expressing confidence that the MoU with Posco-India will be renewed by the month-end, Minister for Steel and Mines Raghunath Mohanty admitted that the earlier deadlines of June-end and second week of July were missed.  The controversial iron ore export clause remains a bone of contention. The Steel and Mines and Law departments are thoroughly examining the provision in the lapsed MoU, the minister said. While according the final forest clearance for the project on May 2, Union Minister of State for Environment and Forests Jairam Ramesh had advised the State Government to avoid the clause in the revised MoU. Official sources said that another reason for the delay in renewing the MoU could be Posco’s recent proposal to set up 12-mtpa capacity steel facility in different phases and modules. This has delayed the process as the amount of raw materials and water requirement for each phase would have to be calculated separately. These issues will be decided at a high- level meeting to be presided over by Chief Minister Naveen Patnaik. The date  is yet to be finalised.Posco-India has, however, agreed to accept the State Government’s mandatory employment provision of reserving jobs for the local youths and committed to implement the rehabilitation and resettlement policy.