As the MoU for setting up the proposed 12 mtpa steel plant had already lapsed since June 2010, the state government needs to enter into a tripartite agreement with the parent Posco company and its Indian subsidiary, Posco India.
Both the state government and the steel major had meanwhile agreed to downsize capacity of the proposed greenfield steel mill to 8 mtpa from 12 mtpa. The company, however, said that it could expand the plant's capacity to 12 mtpa if it was allowed to get adequate land required for the purpose.
"The signing of agreement between the state government and Posco is likely to be further delayed as there has been no unanimity over the controversial swapping clause and water source," a senior official said.
Posco India, which according to the previous MoU was planning to export iron ore, had meanwhile agreed to swap the iron ore through the state-owned Orissa Mining Corporation (OMC).
The state government, on the other hand insisted that the swapping clause as a whole should be deleted from the proposed tripartite agreement. (MORE)