Orissa minister for steel and mines Padmanav Behera has ruled out revision in the Memorandum of Understanding (MoU) with South Korean steel major Posco for setting up of a 12 million tonne steel plant at Paradip in the face of opposition from certain quarters to the project. | |
| "There is no second thought or need to constitute an expert group to look into the various allegations of shortcomings in the MoU," Behera said and added that the government is committed to implement the MoU facilitating the establishment of the proposed steel plant. |
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| Dispelling apprehensions that the iron ore reserves in Orissa will be exhausted in 30 years if captive lease requests of various mega projects lined up for implementation in the state are accommodated, the minister said that fresh assessments have found iron ore reserves to be much more than the projected figure earlier and the resources can sustain the need of all the proposed steel plants including that of Posco for more than 100 years. |
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| The minister's assertions follow discussion on Posco deal in the parliament on Wednesday during which the Left demanded a full review of the MoU between Orissa government and the South Korean company. |
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| Meanwhile, the coalition partner of BJD in Orissa, BJP has thrown its towel into the Posco muddle by posing a few queries on the deal through its website. This follows the BJP state president, Juel Oram's letter to the chief minister, raising 12 points relating to the Posco deal including iron-ore export. |
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| In the "Newsflash" page on its website, BJP has raised questions on the stand of the Central government with regard to the Posco MoU. It has also asked whether the project would be governed by Mines and Mineral Development and Regulation Act or any other law. If the MMDR ACT is applicable, what will happen to the "nationality" clause, it asked |
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| Has Posco signed an MoU with the BHP Billiton of Australia for setting up a joint venture for supply of iron ore on a long-term basis? Has Posco inked another MoU with CVRD of Brazil for the same purpose? |
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| What are the conditions for these joint venture partners and whether any provision has been made for swapping of iron ore with the Australian and Brazilian companies are the other questions that the party has posed in this perspective. |
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| The BJP has also asked what would be the quantum of iron ore, manganese, coal and other mineral deposits required for the project and whether these would be sufficient for future generations. |
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| The party has sought to know how many companies the state government has recommended for mining lease and whether it has promised any mine to Posco out of the area held by Orissa Mining Corporation. |
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| The newsflash on the party website wonders whether Posco has signed an agreement with MMTC for the supply of iron ore till 2006 and if yes, what were the conditions and whether the MMTC has agreed to supply iron ore at market price. The other posers included whether an environmental impact assessment of the Paradip area was at all undertaken prior to the signing of the MoU with the South Korean steel major. |
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| The posting of all these questions on the website by BJP is seen by political observers as a snub to chief minister Naveen Patnaik who has always responded to posers from opposition and his coalition partner BJP on the Posco deal by asking them to look up the Orissa government website to get details on the MoU. |
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