INDIA:Odisha not to assure raw material supply in the renewed MoUs

Bhubaneshwar India, The Odisha government will no longer give any fresh assurance on supply of raw materials to steel companies in the revised MoUs to be signed with those  steel makers whose earlier Memorandum of Understanding (MoU) validity period have already expired. Also the state will not recommend the centre for allocation of coal block in favour of any company in view of the recent amendments in the MMDR act, 1957, which has mandated competitive bidding of coal blocks.

The Odisha government said this while issuing new guidelines for extension of validity period of the MoUs signed for establishment of steel projects in the state. On Monday the state steel and mines department reviewed the progress of the MoUs signed with several steel companies. According to sources, of the 49 MoUs signed by the state government for setting up steel projects, only two companies have valid MoUs while cases of others including Posco and 

ArcelorMittal are pending for renewal, the sources said.Stating that grant of further time or extension of validity of MoU may be considered in respect of deserving cases, the new guidelines will consider companies which have fulfilled their part of obligations as per the MoU or have made best efforts towards establishment of the project.

The state-owned Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) would assess the progress of implementation of the projects as per the existing MoU and make appropriate recommendation on the proposal for extension of the validity of MoU or grant of further time for completion of the project, the guideline said.

While making recommendations, the IPICOL will specifically report if the project proponent has fulfilled their obligations as per the MoU, made best efforts towards establishment of the projects, it said.

The guideline also said that, mineral concession already recommended/granted for captive purpose will be exclusively for captive use only and no export or swapping of minerals would be permitted.

Reported by Tapan Moharana