Orissa seeks Posco India's views

Posco has been asked to submit an application for renewal of the lapsed MoU and the Orissa government has sought views of the South Korean steel major in view of the Union Environment Minister Jairam Ramesh's comments over export of iron ore in the earlier memorandum.

"The minister has made some suggestions over the export clause in the lapsed MoU. We are examining what could be done in this matter," chief secretary BK Patnaik said here.

Ramesh, who was 'deeply uncomfortable' over provisions for export of iron ore in the earlier MoU with Posco India, had also said "I would expect the revised MoU between the state and Posco would be negotiated in such a manner that exports of raw material are completely avoided."

Official sources in the steel and mines department said the law department had already cleared the draft for the revised MoU and under the changed circumstances Posco is required to give its views on issues like iron ore swapping, water sources and reservation of jobs for local people.

The company also needs to make its stand clear on the proposed port project, the location of which comes under high erosion zone at Jatadhar mouth near Paradip, the sources said.

According to the lapsed MoU, signed on June 22, 2005, the state government had agreed to allow the company to swap certain quantities (not exceeding 30% of the total requirement for Paradip plant annually) of such iron ore which have high alumina content with equal quantity of low alumina content iron ore of equivalent or better Fe content imported for blending, in order to produce better quality steel in Paradip Project and conserve energy.