The revised Memorandum of Understanding (MoU) with Posco India will contain the revised project plan proposed by the South Korean steel major and also the mandatory employment clause of the Orissa government.
Top officials of the state government are set to meet tomorrow at the state secretariat to discuss the modalities of renewal of the pact. The meeting will be held at the Chief Secretary level but sans Posco India officials who are likely to be called later this month for a round of talks to finalise the terms of renewal.
“We are going to have a meeting on the renewal of MoU with Posco India tomorrow. At the meeting, it will be decided whether we want to include some new points in the MoU”, Chief Secretary B K Patnaik told reporters here.
Asked if the clause relating to swapping of iron ore will be included in the new MoU, “It is being examined. No decision has been taken as of now”.
Though official sources are tight lipped on the issue of swapping of iron ore, it is learnt that the steel maker was no longer interested in ore swapping as it would make use of Finex technology for steel making.
Posco India had inked an MoU with the Orissa government on June 22, 2005. The agreement expired on June 21 last year. The state steel & mines minister Raghunath Mohanty had recently stated that the MoU with Posco India would be renewed by the end of this month.
Manoj Ahuja, secretary (steel & mines) said, “The revised employment clause of the state government will figure in the renewed MoU. Posco India has agreed to abide by the employment clause. Also, the revised project plan of Posco India where they have proposed to set up their 12 million tonne per annum (mtpa) steel plant in three phases of four mtpa each will find mention in the revised pact”. The steel major had originally proposed to commission the 12 mtpa steel mill in four phases (three mtpa in each phase).
The employment clause of the state government to which Posco India has given its consent stipulates that industries setting up their projects in the state have to reserve 90 per cent jobs for locals in the unskilled and semi-skilled category, up to 60 per cent in skilled category and 30 per cent for the supervisory and managerial cadre, while giving them the option to fill up the post of senior executives from the open market.
On the period of renewal of MoU, Ahuja said, “The original MoU was signed for a period of five years. Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) has recommended the renewal of the MoU for six years. But we are yet to take a decision on this count”.
He also clarified that the source of water allocation for the project was not mentioned in the original MoU.
