Orrisa nets Posco deal after 35 MoUs

Throwing an impregnable security ring around the secretariat here, the Orissa government today ensured that the signing of the much-delayed memorandum of understanding with South Korean steel major Posco went without a hitch after threats by parties opposed to the deal.

This was the state government's 36th MoU in the last two years for steel plants, but nothing prior to it ever matched today's show in pomp, grandeur and preparedness.

Living up to the hype created around the Posco project --the biggest FDI flow into India with a proposed investment of $12 billion "" the Orissa government appeared to have dotted the i's and crossed the t's with clinical precision in the run-up to the signing ceremony.

Not only the third-floor conference room of the secretariat was spruced up, but also rows of chairs in the hall were carefully arranged to accommodate the visiting South Korean dignitaries, state ministers, Posco executives, state officials and reporters, both domestic and international.

Outside, a massive security arrangement was a statement in itself about the importance the Orissa government attached to the occasion. Fifteen platoons of Orissa State Armed Police (OSAP) were deployed to guard every nook and corner of the secretariat and some parts of the building, including the entire third floor, which has the chief minister's office and the conference hall.

Nobody without a valid pass could go past the turnstiles manned by security personnel.

For the media, a separate pass was issued. In fact, the atmosphere was so overbearing that it seemed a head of state was coming to sign a bilateral treaty.

The paranoia for security was because of a threat issued yesterday by four Opposition parties, who were against the deal, explained an official.

He said not only the state secretariat; security had also been beefed up at the airport and the hotel where the Posco executives and South Korean dignitaries were staying.

The CPI, the CPI(M), OGP and Janata Dal(S) are opposing a clause in the agreement which will allow Posco to export iron ore from the state. Some of their workers today held a demonstration outside the secretariat to register their protest.

But they were immediately whisked away by the police. But the main Opposition party, the Congress, has chosen to stay away from the path of agitation though it has raised objections on the project.

Opposing the ore-swapping clause in the MoU, which allowed Posco to export low-grade ore and import an equivalent amount of high-grade ore from Brazil, Congress leaders said, the company should better set up a ore beneficiation plant in the state to improve the quality of the low-grade ore instead of sending them out.

They also questioned the wisdom of the state government in going on a MoU-signing spree without paying attention to the infrastructure needs of the proposed ventures.