Save
PrintSouth Korean steel major Posco India seems to have agreed to the conditions of the Odisha government for setting of its proposed 12- million- steel mega project near Paradip in Jagatsinghpur district of Odisha.
According to the sources in the state government, the company will not be swapping the low-gradeiron ore with foreign countries like Brazil (for import of high-grade ore) but will carry out the process within India.
“As per the new arrangement, the company has agreed not to swap the low-grade iron ore with foreign countries to get high-grade ore to feed its plant.
Instead, it will swap the low-grade ore to be extracted from its “yet-to-be-obtained” captive mines in Sundergarh district within India with the help of the state-owned Odisha Mining Corporations (OMC),” the sources informed on Monday.
As per the earlier understanding, the Odisha government had agreed to allow Posco India to swap nearly six million tonnes of iron ore with foreign countries, including Brazil, to avail high-grade ore. However, there were strong protests from political circles on this issue.
The opposition parties alleged that Posco India wanted to drain away the iron ore resource of the country by this “fraudulent” arrangement.
They even blamed the ruling Biju Janata Dal (BJD) that it was trying to show undue favour by allowing the swapping and insisted for quashing this clause from the memorandum of understanding (MoU) signed with the company.
State industry minister Raghunath Mohanty, under mounting pressure from political parties, had asked Posco India to reconsider the swapping issue.
“Besides dropping the issue of foreign swapping of iron ore, Posco India has agreed to carry out the process within India and has consented to give priority to recruit local youth at the plant.
The Odisha government, Posco India and its parent organization, Posco, would sign a tripartite agreement on the new arrangement,” sources said.
Posco India had signed a new memorandum of understanding (MoU) with the Odisha government on June 22, 2005, to set up a 12-MTPA steel project in Odisha with an investment of `52,000 crore, the highest ever foreign direct investment (FDI) in the country.
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Tell Us What You Think