Even as the government is gearing up to renew the MoU with Posco India, one of the clauses in the MoU specifying the condition of non-renewal of the pact has put it on the back foot. The relevant clause said, “The MoU shall remain valid for a period of five years from the date of signing. Further extension, if necessary, shall be made as per mutual agreement. However, no extension shall be considered unless the company has made substantial progress on implementation of the project in terms of construction, erection of plant and machinery and investment at the site to the satisfaction of the state government in these five years in implementing the first phase as envisaged in this MoU”. With Posco not being able to acquire land for the project, leave alone construction or erection of the plant, the government, sources said, is in a tight spot to justify renewal of the agreement.
Meanwhile, state industry minister Raghunath Mohanty said, the government has sent the Posco’s application for renewal of the MoU, submitted on June 8, to the Industrial Promotion and Investment Corporation for vetting.
