75 MoUs for projects expire

BHUBANESWAR: The MoUs signed by the state government for 75 projects since 2002 have expired. Among these 48 are steel projects. The rest are 20 from the power sector, two for cement industry and five from aluminium, automobile, ancillary and Titanium sectors.

South Korean steel major Posco signed an MoU on June 22, 2005 to set up a mega steel plant in Jagatsinghpur district and the deal expired on June, 21, 2010. The company is waiting for its renewal even as the industries department had already recommended further extension of the MoU.

Posco has already spent over Rs 180 crore on the project worth Rs 51,000 croe and there has been some progress in the ongoing land acquisition.

Similarly, steel maker Arcelor Mittal India Ltd singed an MoU with the government on December 22, 2006, for its project in Keonjhar district and its MoU expired on December 20, 2011. The company has already spent over Rs 25 crore on its Rs 40,000 crore project and land acquisition is also going on. He added the proposal for renewal of MoU is being processed by IPICOL, the state’s nodal agency for signing up of MoUs.

Besides, 18 more proposals are in different stages of renewal while eight have not applied for extension, government officer said.

The MoUs for projects recommended for extension belong to Tata, Rungta Mines, Jindal Steel and Power, Bhusan Steel Ltd and SPS Steel and Power. MoUs with Arati Steels and Visa Steel Ltd are at different stages of renewal.

The companies that did not apply for renewal of their MoUs include Bhusan Power and Steel Ltd, Maheswary Ispat Ltd., Jain Steel and Power Ltd, Maharashtra Seamless Ltd, Deepak Steel and Power Ltd and Viraj Steel and Energy Power Ltd.

In the power sector, some MoUs have expired. Among these Tata Power Company’s Naraj Marthapur project MoU has expired on September 25, 2011. The MoU for Jindal Steel and Power Ltd’s Badkerjang project in Angul district expired on February 6, 2012.

The construction of the Tata Company’s project did not start for a court’s status quo order. In Jindal’s case, the land acquisition is on.

Industries minister Niranjan Pujari said the government is taking steps for renewal of the MoUs.

[Source — Times of India]


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