Posco, Orissa govt may sign MoU on June 22

Decks have been cleared for the signing of the MoU between Posco and Orissa government for the biggest FDI in a single project in the country - a Rs 52,000 crore steel project at paradip.

The controversial project was cleared at a meeting of the state government's project clearance authority yesterday with the Koreans expected to sign the MoU on June 22 next, the industries minister Biswabhushan Harichandan said.

The meeting discussed the various aspects of the proposed 12 million tonne project to be set up over a period of ten years.

However, opposition parties maintained their objection to the company being allowed to export iron ore from the state.

The government appeared unfazed at the opposition demand that Posco should not be allowed to export iron ore from the country.

Harichandan said the government had stipulated that export of iron ore by Posco would be allowed only against import of equal amount. The company had sought 600 million tonnes of iron ore for its project.

The project would provide jobs to 13,000 people while another 35,000 would get indirect employment, Harichandan said adding the MoU would include a clause that the displaced people would be properly rehabilitated by the company.