| The project is bandied as the biggest single foreign direct investment in the country worth $12 billion (Rs 52,000 crore) and has attracted international attention for being the first major investment by Posco outside Korea. |
| "The MoU will be signed tomorrow and all preparations have been made for the purpose," the state steel and mines minister Padmanav Behera said. |
| The MoU will be signed in the presence of 36-member Korean delegation led by POSCO chairman Ku Taek Lee and Korean ambassador Jung Li Choi. |
| The team also comprises senior executive vice president of Posco Sung Sik Cho, vice president Young Tae Kwon, director Tae Hyun Jeong, and senior officials of Posco's sister organisations Posac, Posmec, Posrec and Poscon. |
| On behalf of the state, the chief minister Naveen Patnaik, six of his cabinet colleagues and senior officials including the chief secretary Subas Pani will be present on the occasion. Besides, some members of international media are expected to attend the tomorrow's MoU signing ceremony. |
| The MoU is being signed in the backdrop of objections from certain quarters to the provision for export of iron ore from the state by the Korean company. |
| The leaders of four parties CPI , CPI (M), Janata Dal (S) and local out fit Orissa Gana Parishad today announced to launch a civil disobedience movement against the deal beginning tomorrow in front of the state secretariat coinciding with the signing of MoU. |
| The leaders also threatened to organize blockade at Paradip, the site of the project. The main opposition Congress, however, maintained its distance from the agitational programme. |
| A delegation of the four parties visited New Delhi and met the prime minister Manmohan Singh on June 17 last to express their misgivings about some of the provisions in the MoU including the export of iron ore from the State. |
| The memorandum submitted to the Prime Minister by the delegation pointed out that with a plethora of MoUs signed with different companies for setting up of steel plants in the state, the iron ore deposits would be exhausted in a few years. |
| Bijay Mohapatra president of OGP said, the PM has assured the delegations that he will look into the issue and ensure nothing is done against national interest. |
| "We hope he will intervene in the matter", he added. Pointing out that a foreign company was going to get the mining rights in the country for the first time, Mohapatra questioned the intention of the state government in rolling out the red carpet for the Korean steel maker without making entire matter transparent before the people. |
| He said, Orissa had 4177 million tonne of iron ore reserver of which 2800 million tonne had already been given to several companies including SAIL and Orissa Mining Corporation (OMC). |
| As the government had signed 37 MoUs with various companies for setting up steel projects of 35 million tonne capacity, the new plants will require 2016 million tonne of iron ore, he said and added that the state did not have ore reserve for the Korean company. |
| If the government has to provide 600 million tonne of ore to Posco as per the requirement, it will have to be at the cost of numerous sponge rion plants, the OGP leader said. |
| Pointing out that mining cost for one tonne of iron ore is Rs 400 which is sold at around Rs 2,000 in the market, Mohapatra said, if Posco was allowed to mine iron ore in the state it will make a profit of Rs 1,600 per tonne which will amount to Rs 96,000 crore in 30 years time as against their proposed Rs 52,000 crore investment plan. |
| Left, JD(S) to protest move |
| |
Top Section
Explore Business Standard