Posco MoU to expire on 22nd June
Hi All
Just wanted to bring to your attention the news below and the gross illegality being committed by the Government of Orissa in its decision to renew the MoU with POSCO which completes 5 years on 22nd June 2010. As per the Para 19 (v) of the MoU
The MoU shall remain valid for a period of five years from the date of signing. Further extension, if necessary, shall be made as per mutual agreement. However, no such extension shall be considered unless the Company has made substantial progress on implementation of the project in terms of construction, erection of plant and machinery and investment at site to the satisfaction of the State Government in these five years in implementing the first phase as envisaged in this MoU.
As per the MoU 6 MT production of steel shouldve been commissioned by the end of the first phase (July 2010)….
Just goes to show that its own document,the MoU, is also just a facade for the State! Could we pass this to some friends in the media for a story…
Tks
Manshi
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*Orissa may renew MoUs of POSCO and 9 other steel players*
The Orissa government is likely to renew the MoU with the South Korean steel major POSCO for its 12 million tonne, INR 54,000 crore steel plant in Orissa with incorporation of a clause on giving priority to locals in employment.
An official source told Business Standard that “We would renew the MoU with POSCO India. Though the broad terms and conditions of the pact are unlikely to be altered, the state government will only incorporate a clause which will make it compulsory for the steel major to set up an Industrial Training Centre and absorb locals for its project. The socio economic survey for the POSCO project has started recently and no land has been allotted to the company as yet.”
POSCO India had entered into MoU with the state government on June 22, 2005 and with the term of the agreement coming to end this month, it requires to be renewed.
The POSCO steel project billed as India’s single largest FDI, has made negligible headway at the ground level, mainly due to agitation over land acquisition spearheaded by the POSCO Pratirodh Sangram Samiti for over four years.
Besides POSCO India, the state government is also mulling to renew the MoUs with nine more steel players which have made satisfactory progress on their projects but have been grappling with issues like grant of mining lease, availability of water and land acquisition.
The state steel and mines department had recently reviewed the project status of all the 49 steel players which have inked MoUs with the state government. The cumulative capacity of all these projects was 83.66 million tonnes entailing a total investment of INR 230,000 crore.
(Sourced from BS)
Related posts:
- “Do not renew MoU with POSCO”, urges New Petition.
- “Do Not Renew the POSCO MoU” Petition
- Posco Pratirodh Sangram Samiti to observe black day on June 22
