South Korean major
Posco on Monday said it expects to renew "shortly" its pact with Orissa government for building $12 billion (about Rs 54,000 crore) steel plant while assuring no exports of any iron ore from there.
The statement comes in the wake of the Centre granting final approval to Orissa for diversion of 1,253 hectares of forest land for Posco's 12 million tonnes (MT) steel plant at Jagatsinghpur in the state, the biggest foreign direct investment in the country.
"We hail Centre's decision to grant us clearance and expect to renew our agreement shortly for the 12 million tonne (MT) plant with the Orissa government that expired last year," Posco India Vice President Vikas Sharan said.
Sources said the pact, which is pending with the State Government's law department could be renewed in 10 to 15 days.
Sharan said the company is committed to the project and the welfare of the local community and would not export any iron ore from the project.
"There were no plans for export of iron ore from the project and now also we do not intend to do any exports. The low-grade iron ore available will be entirely consumed in the plant, which will be built on finex technology," he said.
Under finex technology, which is presently not available in India, low grade ore or fines is used in steel making.
Clearing the decks for the project, Environment Minister Jairam Ramesh on Monday said the company should not export ore.
"I would expect that the revised MoU between the state and Posco would be negotiated in such a manner that exports of the raw material are completely avoided," Ramesh has said adding that the expired MoU had provisions for export which made him deeply uncomfortable with the project.
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