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LATEST NEWS UPDATES | Orissa to renew MoU with Posco by June end by Nageshwar Patnaik </title>
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Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after..."/>
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Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after..." />
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<h1 class="cat-box-title">Orissa to renew MoU with Posco by June end by Nageshwar Patnaik</h1>
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Published on</span><span class="text-date"> Jun 23, 2011</span>
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<br /><div align="justify">Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after a period of five years. <br /><br />State steel and mines minister Raghunath Mohanty said all formalities required for renewal of the MoU will be over shortly and the government would revalidate the document by June 30. "The state government, as announced earlier, is committed to the project and the MoU renewal process would be over by June 30. At present, we are trying complete all the formalities," the minister said. <br /><br />Mr Mohanty also claimed that the initial work for the Rs 52,000-crore project had got underway since Tuesday notwithstanding the resistance in some parts of the project area. The state government would continue the construction work in the lands under the possession of the state-owned Industrial Infrastructure Development Corporation (IDCO), he asserted. <br /><br />Earlier this month, the state government announced to consult South Korean steel major before recommending the revised MoU to the chief minister, Naveen Patnaik for his approval. Meanwhile, all the concerned departments have put forth their views on the MoU and have suggested certain amendments to the previous MoU. One of the key points in the expired MoU was the swapping of iron ore which is likely to be excluded. <br /><br />In the first MoU signed between Posco and Orissa government on June 22, 2005, there was a provision which said "The Company may swap certain quantities (not exceeding 30% of the total requirement for the Paradeep Plant annually) of such iron ore which have high alumina content with equal quantity of low alumina content iron ore of equivalent or better Fe content imported for blending, in order to produce better quality steel in the Paradip Project and conserve energy". <br /><br />No export of iron ore by Posco will be allowed from the captive mine except by way of full replacement through import of equal quantity of high grade ore and within the limits mentioned above, the MoU said. <br /><br />In the changed situation Posoc has not shown interest in swapping of iron ore as it would make use of Finex technology for steel making by using the low grade iron ore, sources in Posco said here. The steel major has sought 600 million tonnes of iron ore of an average Fe content of 62%, to meet the requirements of the proposed Steel Project of 12 million tons per annum. <br /><br />The revised Memorandum of Understanding (MoU) with Posco India will incorporate the revised project plan proposed by the South Korean steel major and also the mandatory employment clause of the Orissa government. The employment clause of the state government to which Posco India has given its consent stipulates that industries setting up their projects in the state have to reserve 90% jobs for locals in the unskilled and semi-skilled category, up to 60% in skilled category and 30% for the supervisory and managerial cadre, while giving them the option to fill up the post of senior executives from the open market. <br /><br />The South Korean company has proposed to set up their 12 million ton per annum (mtpa) steel plant in three phases of four mtpa each instead of four phases (three mtpa in each phase) as provided in the previous MoU.</div>
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<br><a href="http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/orissa-to-renew-mou-with-posco-by-june-end/articleshow/8954577.cms" class="re" target="_blank">The Economic Times, 22 June, 2011, http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/orissa-to-renew-mou-with-posco-by-june-end/articleshow/8954577.cms</a><div class="clear"></div>
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LATEST NEWS UPDATES | Orissa to renew MoU with Posco by June end by Nageshwar Patnaik </title>
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Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after..."/>
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Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after..." />
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<h1 class="cat-box-title">Orissa to renew MoU with Posco by June end by Nageshwar Patnaik</h1>
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<br /><div align="justify">Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after a period of five years. <br /><br />State steel and mines minister Raghunath Mohanty said all formalities required for renewal of the MoU will be over shortly and the government would revalidate the document by June 30. "The state government, as announced earlier, is committed to the project and the MoU renewal process would be over by June 30. At present, we are trying complete all the formalities," the minister said. <br /><br />Mr Mohanty also claimed that the initial work for the Rs 52,000-crore project had got underway since Tuesday notwithstanding the resistance in some parts of the project area. The state government would continue the construction work in the lands under the possession of the state-owned Industrial Infrastructure Development Corporation (IDCO), he asserted. <br /><br />Earlier this month, the state government announced to consult South Korean steel major before recommending the revised MoU to the chief minister, Naveen Patnaik for his approval. Meanwhile, all the concerned departments have put forth their views on the MoU and have suggested certain amendments to the previous MoU. One of the key points in the expired MoU was the swapping of iron ore which is likely to be excluded. <br /><br />In the first MoU signed between Posco and Orissa government on June 22, 2005, there was a provision which said "The Company may swap certain quantities (not exceeding 30% of the total requirement for the Paradeep Plant annually) of such iron ore which have high alumina content with equal quantity of low alumina content iron ore of equivalent or better Fe content imported for blending, in order to produce better quality steel in the Paradip Project and conserve energy". <br /><br />No export of iron ore by Posco will be allowed from the captive mine except by way of full replacement through import of equal quantity of high grade ore and within the limits mentioned above, the MoU said. <br /><br />In the changed situation Posoc has not shown interest in swapping of iron ore as it would make use of Finex technology for steel making by using the low grade iron ore, sources in Posco said here. The steel major has sought 600 million tonnes of iron ore of an average Fe content of 62%, to meet the requirements of the proposed Steel Project of 12 million tons per annum. <br /><br />The revised Memorandum of Understanding (MoU) with Posco India will incorporate the revised project plan proposed by the South Korean steel major and also the mandatory employment clause of the Orissa government. The employment clause of the state government to which Posco India has given its consent stipulates that industries setting up their projects in the state have to reserve 90% jobs for locals in the unskilled and semi-skilled category, up to 60% in skilled category and 30% for the supervisory and managerial cadre, while giving them the option to fill up the post of senior executives from the open market. <br /><br />The South Korean company has proposed to set up their 12 million ton per annum (mtpa) steel plant in three phases of four mtpa each instead of four phases (three mtpa in each phase) as provided in the previous MoU.</div>
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<br><a href="http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/orissa-to-renew-mou-with-posco-by-june-end/articleshow/8954577.cms" class="re" target="_blank">The Economic Times, 22 June, 2011, http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/orissa-to-renew-mou-with-posco-by-june-end/articleshow/8954577.cms</a><div class="clear"></div>
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LATEST NEWS UPDATES | Orissa to renew MoU with Posco by June end by Nageshwar Patnaik </title>
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Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after..."/>
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Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after..." />
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<h1 class="cat-box-title">Orissa to renew MoU with Posco by June end by Nageshwar Patnaik</h1>
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<br /><div align="justify">Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after a period of five years. <br /><br />State steel and mines minister Raghunath Mohanty said all formalities required for renewal of the MoU will be over shortly and the government would revalidate the document by June 30. "The state government, as announced earlier, is committed to the project and the MoU renewal process would be over by June 30. At present, we are trying complete all the formalities," the minister said. <br /><br />Mr Mohanty also claimed that the initial work for the Rs 52,000-crore project had got underway since Tuesday notwithstanding the resistance in some parts of the project area. The state government would continue the construction work in the lands under the possession of the state-owned Industrial Infrastructure Development Corporation (IDCO), he asserted. <br /><br />Earlier this month, the state government announced to consult South Korean steel major before recommending the revised MoU to the chief minister, Naveen Patnaik for his approval. Meanwhile, all the concerned departments have put forth their views on the MoU and have suggested certain amendments to the previous MoU. One of the key points in the expired MoU was the swapping of iron ore which is likely to be excluded. <br /><br />In the first MoU signed between Posco and Orissa government on June 22, 2005, there was a provision which said "The Company may swap certain quantities (not exceeding 30% of the total requirement for the Paradeep Plant annually) of such iron ore which have high alumina content with equal quantity of low alumina content iron ore of equivalent or better Fe content imported for blending, in order to produce better quality steel in the Paradip Project and conserve energy". <br /><br />No export of iron ore by Posco will be allowed from the captive mine except by way of full replacement through import of equal quantity of high grade ore and within the limits mentioned above, the MoU said. <br /><br />In the changed situation Posoc has not shown interest in swapping of iron ore as it would make use of Finex technology for steel making by using the low grade iron ore, sources in Posco said here. The steel major has sought 600 million tonnes of iron ore of an average Fe content of 62%, to meet the requirements of the proposed Steel Project of 12 million tons per annum. <br /><br />The revised Memorandum of Understanding (MoU) with Posco India will incorporate the revised project plan proposed by the South Korean steel major and also the mandatory employment clause of the Orissa government. The employment clause of the state government to which Posco India has given its consent stipulates that industries setting up their projects in the state have to reserve 90% jobs for locals in the unskilled and semi-skilled category, up to 60% in skilled category and 30% for the supervisory and managerial cadre, while giving them the option to fill up the post of senior executives from the open market. <br /><br />The South Korean company has proposed to set up their 12 million ton per annum (mtpa) steel plant in three phases of four mtpa each instead of four phases (three mtpa in each phase) as provided in the previous MoU.</div>
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<br><a href="http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/orissa-to-renew-mou-with-posco-by-june-end/articleshow/8954577.cms" class="re" target="_blank">The Economic Times, 22 June, 2011, http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/orissa-to-renew-mou-with-posco-by-june-end/articleshow/8954577.cms</a><div class="clear"></div>
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LATEST NEWS UPDATES | Orissa to renew MoU with Posco by June end by Nageshwar Patnaik
Orissa to renew MoU with Posco by June end by Nageshwar Patnaik
Published on Jun 23, 2011
Modified on Jun 23, 2011
Orissa is all set to renew its memorandum of understanding (MoU) with steel major Posco with a one-year retrospective effect by June 30th. The MoU for the proposed 12 million ton steel plant had expired on June 22, 2010 after a period of five years.
State steel and mines minister Raghunath Mohanty said all formalities required for renewal of the MoU will be over shortly and the government would revalidate the document by June 30. "The state government, as announced earlier, is committed to the project and the MoU renewal process would be over by June 30. At present, we are trying complete all the formalities," the minister said.
Mr Mohanty also claimed that the initial work for the Rs 52,000-crore project had got underway since Tuesday notwithstanding the resistance in some parts of the project area. The state government would continue the construction work in the lands under the possession of the state-owned Industrial Infrastructure Development Corporation (IDCO), he asserted.
Earlier this month, the state government announced to consult South Korean steel major before recommending the revised MoU to the chief minister, Naveen Patnaik for his approval. Meanwhile, all the concerned departments have put forth their views on the MoU and have suggested certain amendments to the previous MoU. One of the key points in the expired MoU was the swapping of iron ore which is likely to be excluded.
In the first MoU signed between Posco and Orissa government on June 22, 2005, there was a provision which said "The Company may swap certain quantities (not exceeding 30% of the total requirement for the Paradeep Plant annually) of such iron ore which have high alumina content with equal quantity of low alumina content iron ore of equivalent or better Fe content imported for blending, in order to produce better quality steel in the Paradip Project and conserve energy".
No export of iron ore by Posco will be allowed from the captive mine except by way of full replacement through import of equal quantity of high grade ore and within the limits mentioned above, the MoU said.
In the changed situation Posoc has not shown interest in swapping of iron ore as it would make use of Finex technology for steel making by using the low grade iron ore, sources in Posco said here. The steel major has sought 600 million tonnes of iron ore of an average Fe content of 62%, to meet the requirements of the proposed Steel Project of 12 million tons per annum.
The revised Memorandum of Understanding (MoU) with Posco India will incorporate the revised project plan proposed by the South Korean steel major and also the mandatory employment clause of the Orissa government. The employment clause of the state government to which Posco India has given its consent stipulates that industries setting up their projects in the state have to reserve 90% jobs for locals in the unskilled and semi-skilled category, up to 60% in skilled category and 30% for the supervisory and managerial cadre, while giving them the option to fill up the post of senior executives from the open market.
The South Korean company has proposed to set up their 12 million ton per annum (mtpa) steel plant in three phases of four mtpa each instead of four phases (three mtpa in each phase) as provided in the previous MoU.
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