IPICOL moots renewal of Posco MoU

Bhubaneswar: The Industrial Promotion and Investment Corporation Ltd (IPICOL) has recommended the state government to extend the renewal of Memorandum of Understanding (MoU) with South Korean steel major Posco by six years. Following the recommendation, the state steel and mines department has forwarded the proposal to the law department for its feedback.

As per IPICOL, the mandatory employment clause introduced by the state government will be strictly followed.

The employment clause states that 90 per cent unskilled and semi skilled labourers, 60 per cent skilled workers and 30 per cent managerial posts will be absorbed from the local community. 

“Ninety per cent unskilled and semi skilled labourers, 60 percent skilled workers and 30 per cent managerial posts will be reserved for the local population,” steel and mines minister Raghunath Mohanty said.

It may be mentioned here that the state government had earlier categorically stated that the employment clause seeking reservation of jobs for the locals will be mandatory and applicable for all industries who have signed MoUs or are going to enter into agreement with the state government.

On the other hand, the government is likely to submit its assurance to the Ministry of Environment and Forest on the proper implementation of the Forest Rights Act-2006 in next two days.

Replying to a query to newsmen, chief secretary B K Patnaik said, the report has been prepared by the state environment department based on report received from Jagatsinghpur District Collector.

“The Jagatsinghpur administration has already given its report which was sent to the department of scheduled tribe and scheduled caste for examination following which the forest and environment department will finally send the report to the MoEF. There are no tribals inhabitating in the proposed project site,” chief secretary B K Patnaik said.

According to sources, the government, in its report, would stress that the villagers inhabitating in the proposed steel plant site do not come under the other traditional forest dwellers category.