BHUBANESWAR: Posco-India has sought some clarifications and modifications to the suggestions given by the State Government for renewal of the memorandum of understanding (MoU) for establishment of the proposed 12 million tonne steel plant at Paradip.Sources said though the South Korean steel giant has agreed not to export iron ore as wanted by the Centre and the State government, it has sought some modifications. The company reportedly wants to source iron ore from within the country but does not want to purchase it from the Orissa Mining Corporation (OMC). The company has not made its stand clear on the issue. The company has written a letter to the Government objecting to the proposal to completely do way with the swapping clause from the renewed MoU. The Government is examining the letter from Posco, the sources said.Steel and Mines Minister Raghunath Mohanty, however, refused to elaborate on the swapping clause. Mohanty told mediapersons that the South Korean company has accepted some of the suggestions made by the State Government, but it wants certain modifications.Though the MoU lapsed on June 21, 2010, it is yet to be renewed because of certain reasons, including the iron ore swapping clause. The original MoU had the provision that iron ore high in alumina content not exceeding 30 per cent of the total annual requirement for the Paradip plant could be swapped with equal quantity of low alumina content iron ore or with better content imported for blending to produce better quality steel and conserve energy.The provision of swapping of iron ore in the MoU had been opposed by many, including then Environment Minister Jairam Ramesh. Mohanty said the Government is examining Posco India’s application for modification and certain in-principle decision would be taken.Meanwhile, Chief Secretary Bijay Kumar Patnaik said the Government has almost finalised the draft of the MoU with Posco-India. “Have patience, we will renew the MoU with Posco soon,” was his cryptic remark on queries by mediapersons.
Comments
0 comment