Bhubaneswar: With five-year duration of the agreement between the Orissa government and POSCO India for setting up a Rs 51,000-crore steel project near Paradip coming to an end on Monday, the state administration is all set to renew the memorandum of understanding.
The South Korean steel major which had been waiting to set up its 12 million tonnes per annum greenfield steel unit near Paradip in Jagatsinghpur district, had meanwhile made formal application for renewal of the MoU.
Though the company had signed MoU with the state government on June 22, 2005, the project failed to take off in the face of resistance from the local people.
"Renewal of the MoU is an official formality. Since work on the proposed project is on, there should be no difficulty in renewing it," Orissa Steel and Mines minister Raghunath Mohanty told a news agency adding that he was optimistic about implementation of the project.
As the government had been renewing MoUs for other projects which had been in the process of setting up their units, there should be no hesitation for POSCO India, Mohanty said refuting allegation that the state government was favouring the South Korean steel giant.