Renewal plan of Posco's MoU remains in limbo

BHUBANESWAR: The Orissa government has failed to keep its commitment for renewal of the revised agreement with Posco-India for the 12-million tonne steel plant near Paradip by July end, as the South Korean company has not agreed to key conditions in the revised agreement.

Even as the tenure of the previous MoU expired on June 21, 2010, the state government had continued to acquire land for the proposed steel plant billed as the largest foreign direct investment in the country at 52,000 crore.

"I had announced that the MoU with Posco-India will be renewed by July end. In the past too, we had failed to meet previous deadlines. Posco-India has not yet responded to our amended MoU draft," Orissa steel and mines minister Raghunath Mohanty said.