Though the state government had earlier announced plan to renew the MoU with POSCO-India by end of June, it could take another week for reaching the stage, Chief Secretary BK Patnaik told reporters.
The Orissa government is unlikely to meet the June-end deadline to renew the MoU with South Korean steel major POSCO, official sources said today.
Though the state government had earlier announced plan to renew the MoU with POSCO-India by end of June, it could take another week for reaching the stage, Chief Secretary BK Patnaik told reporters.
Maintaining that all the concerned departments and Posco-India have already submitted their views on the possible changes to be made in the fresh MoU, Patnaik said a final decision will be taken at a high-level meeting chaired by Chief Minister Naveen Patnaik.
The MoU signed on June 22, 2005 between Orissa government and Posco-India lapsed on June 21, 2010 and is yet to be renewed.
While many issues relating to possible changes in the fresh MoU were settled through discussion, the controversial export of iron ore provision in the lapsed document continued to remain a major hurdle.
The provision of iron ore export by the company has been questioned by many including Union Environment Minister Jairam Ramesh. While, according to the final forest clearance for the project on May 2, Ramesh said he would like to see the provision of iron ore export completely avoided in the revised MoU.
While Orissa government has agreed to delete the iron ore export clause from the lapsed MoU in view of opposition from different quarters, POSCO authorities are not accepting it, a senior official at the steel and mines department said.
Another reason for delay in renewing the MoU could be POSCO's recent proposal to set up 12 mtpa capacity steel facility in different phases and different modules.
"One has to calculate the amount of raw material and water requirement for each phase," the official pointed out.
Delay in MoU renewal due to different reasons has created suspicion among people who would loose their land for the project, said former minister and Paradip MLA Damodar Rout.
"People are not sure whether the company will set up the steel plant. It must be documented before going for land acquisition," Rout said adding renewal of MoU was essential to expedite land acquisition.
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