Odisha to sign new MoU with Posco by Nov first week: Minister

Odisha government today said the much required MoU with the Posco-India for setting up its proposed 12mtpa steel mill near Paradip at an investment of Rs 52,000 crore was likely to be signed by first week of November, official sources said.
The state government activated the process of signing a new MoU with Posco-India a day after South Korean ambassador Joon-gyu Lee exuded confidence of starting the construction work for the greenfield steel project, billed as the country's single largest FDI, early next year.
"We are at the final stage of the draft and the tripartite MoU will be signed in October end or early next month," Steel and Mines minister Rajanikant Singh told reporters here.

Singh said the tripartite MoU will involve Odisha government, POSCO and Posco-India, a subsidiary of the South Korean company.
The MoU between Odisha government and the Posco-India had lapsed since June 22, 2010 after a five year tenure. The earlier MoU was signed on June 21, 2005.
Replying to a question, Singh said the South Korean steel major has agreed to establish the downstream units of the mega steel plant in the project area to maximise benefits to the locals. Besides, it has also dropped the provision of swapping of iron ore, whether in the country or abroad, for steel project in the state.

The company has also agreed to give priority to the local residents while providing employment for the project, the minister said.
A team of South Korean employees of Posco visited the proposed plant site areas yesterday. The state-owned Industrial Infrastructure Development Corporation (IDCO) has meanwhile put boundary marks over the 2,700 acre of acquired land.
The state government has decided to exclude Dhinika village, the epicentre of the anti-Project agitation, from the site of the proposed mega steel facility near Paradip.