Govt to renew MoU with Posco-India soon: minister

Bhubaneswar: The state government on Thursday said it would soon renew the Memorandum of Understanding (MoU) with South Korean steel major Posco for its proposed steel plant near Paradip.

"The Steel and Mines department has already received the recommendation of the Law department in this regard. The nodal department will soon invite Posco for renewal of the MoU," Orissa`s Steel and Mines minister Raghunath Mohanty told reporters here.

The MoU signed between the state government and Posco-India on June 22, 2005 had expired after completion of the fixed five years tenure on June 21, 2010.

Though nine months had since passed, the state government had not been able to renew MoU with Posco-India mostly due to addition of some new clauses, sources said.

This apart, the minister said that the department was also considering whether to fix the tenure of MoU for five years or extend it.

The state government has proposed to reserve certain percentage of work force in Posco`s proposed project.