Korea hopes India would renew POSCO Steel MOU in Orissa

Busan (S.Korea), June 4 (ANI): Alaying doubts over the fate of South Korean steel company Posco's memorandum of understanding (MoU) with the Orissa government to build a steel plant to be lapsed next month, South Korean former Finance Minister and Chairman of Presidential Committee for the G20 Summit hoped that India will renew its license further.

The MoU for the largest foreign investment in India, signed on June 22, 2005, is valid only for a period of five years and an extension is possible only if there is mutual agreement.

But the ongoing agitation by locals and tribals at the proposed site in Jagatsinghpur district, who are not willing to part with the land for the steel plant has cast show over its viability of the project and it has angered the steelmaker Posco due to lack of progress even after five years of signing the agreement.

Defending Korean steel major Posco, South Korean Leader said, "I hope it will be renewed and I know the Posco is doing well there and working very closely with Indian counterpart. Direct investment is a win-win proposition anyway, I hope India will renew the agreement."

As per the MoU, the project's first module, comprising a 3MTPA crude steel plant and a 2.82MTPA finished steel plant, should have been commissioned by July 2010 or within 36 months from the date of taking possession of the land, or the registration of the executed prospecting license, whichever is later. By Ravi Shankar (ANI)