Posco proposes modification in original project plan

Ahead of the renewal of its MoU with Orissa government, Posco India today proposed certain modifications in its original plan for establishment of 12 million tonne per annum greenfield steel mill near Paradip.

The steel major's modification proposal was given by a team of executives from Posco India to the state steel and mines secretary Manoj Ahuja at the secretariat here, official sources said.

"Posco India has proposed to build the 12 million tonne per annum steel plant in three modules instead of four planned in its original plan," Orissa Steel and Mines Minister Raghunath Mohanty told reporters.

According to the original MoU, the company proposed to set up the 12 million tonne per annum steel mill under four modules (3 million tonne per annum each) in two phases. It now proposes to build 3 modules of 4 million tonne per annum each in order to manufacture steel quickly, Mohanty said.

As the project was delayed by over five years, the modified proposal would help in expediting the volume of manufacture, an official of the steel and mines department said.

"The secretary of steel and mines department has asked the company to submit a written revised project plan before the MoU is renewed... We are examining suggestions of the Union Environment Minister Jairam Ramesh on the export of iron ore in the lapsed MoU with Posco India," Chief Secretary BK Patnaik said.

While the South Korean steel major said it was committed to the Paradip project, Patnaik said it did not express views on the 'controversial' (iron ore) swapping clause in the lapsed MoU signed between the state government and Posco India on June 22, 2005.

Meanwhile, Posco India has agreed to accept the state government's mandatory clause of job reservation for local people.