ET reported that with the land acquisition work for POSCO project near Paradip picking up gradually, Orissa government had decided to renew the lapsed MoU with the South Korean steel major before June 2011.

Mr Raghunath Mohanty steel and mines minister of Orissa said that the state government would renew MoU with POSCO before end of June 2011.

Mr BK Patnaik chief secretary of Orissa said that "We have decided to hold a meeting soon to take final decision on the MoU renewal with POSCO India."

The next meeting between the state government officials and POSCO India executives, was significant as it would take decision on some serious matters like iron ore swapping, possible change in the water source for the steel plant and reservation of jobs for local youths. The swapping clause in the previous MoU was considered as an important point likely to be excluded from the original format.

The June 20th 2011 deadline for renewal of the MoU was fixed as the duration of the lapsed MoU ended on June 21st 2010. The MoU between the company and the state government was signed on June 22nd 2005.

(Sourced from ET)