Posco project: Orissa readying tripartite pacthttps://indianexpress.com/article/news-archive/web/posco-project-orissa-readying-tripartite-pact/

Posco project: Orissa readying tripartite pact

Mohanty said that Posco India has agreed to three conditions set by the state government.

After a wait of seven long years,the greenfield steel project of Posco in Orissa’s Jagatsinghpur district may be a reality with the state government readying an instrument of renewal for the project.

State Steel and Mines Minister Raghunath Mohanty said that an ‘instrument of renewal’ is being processed by his department which would soon be sent to the Chief Minister for his approval. The instrument was necessitated after the Law department objected to renewal of the expired MoU with the South Korean steelmaker. The MoU,which was signed with Posco on June 22,2005,expired on June 22,2010. The instrument will be a tripartite agreement involving Posco,Posco India and the Orissa government.

Mohanty said that Posco India has agreed to three conditions set by the state government. These are setting up downstream industries near the project area,jobs to local people,and swapping of iron ore within India.

In August 2010,Posco had objected to the state government clause of reserving 90 per cent jobs in the unskilled and semi-skilled category,up to 60 per cent in skilled category and 30 per cent for the supervisory and managerial cadre for local people.


However,the company later agreed to it. Earlier,several rounds of talks between state officials and company authorities had remained inconclusive,purportedly over differences between the two sides on issues of ore swapping and employment clause.

Posco has requested the state government to allow it to swap high alumina content iron ore found in Khandadhar mines with better quality ore found elsewhere in the country.

Posco has requested that it be given at least 700 acres more land so that it can start work on the project. The company needs 3719.22 acre of land while the government has so far acquired about 2000 acres.

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