Posco can start work even before signing fresh MoU: Govt

South Korean steel major Posco can start work at the proposed plant site near Paradip before signing fresh MoU with the state, the Orissa government said today.

Non-revision of MoU with the steel major was not a problem for beginning activities, it said.

"Work for the steel project and processing of the MoU can go simultaneously," chief secretary B K Patnaik told reporters.

There were several instances of allowing companies to start work at the sites much before signing of the MoU, he said, adding that the government has so far acquired over 2,000 acres for the purpose.

"We will talk to Posco-India over the matter relating to beginning of the work at the proposed plant site areas under Ersama block in Jagatsinghpur district," he said.

However, the company has to agree to begin the work on the 12 mtpa mega steel plant before entering into any formal MoU, an official at the steel and mines department said.

Replying a question, Patnaik said Posco-India had already submitted its views on the controversial export clause in the previous MoU.

"Posco-India's views on the export clause are being examined by the law, steel and mines departments. The provisions of the MMDR need to be in accordance with the content of the revised MoU," he said.

Posco, in its previous MoU signed in 2005, had wanted about 4,000 acre to set up the plant at an investment of Rs 52,000 crore.