BS reported that the revised MoU with POSCO may not include the earlier controversial clause on iron ore swapping.

A highly placed official source said that “POSCO India has unofficially communicated to us that it no longer needs iron ore swapping, as the company would make use of FINEX technology. Hence, the steel and mines department is not in favor of inclusion of the clause in the revised MoU. But any such proposal by the department will have to be scrutinized by the law department, since the iron ore swapping clause was a part of the original MoU.”

The earlier clause allowed the company to export 30% of the 600 million tonnes of iron ore reserves to be allotted to it and to import an equal amount of high grade ore from Brazil for blending purposes. According to the original MoU, “Any export of iron ore by way of swap will be allowed only after an equivalent quantity of ore has been imported for the plant. The extent of the above quantity of iron ore by way of replacement for equal quantity of import of higher grade iron ore, will be within the framework of the Export-Import Policy of the Government of India applicable from time to time.”

This had drawn flak from different quarters on the ground that with Special Economic Zone status and a captive port facility, the authorities would not be able to properly monitor the ore import export. Besides, no other company in the country with a captive mine facility had got such a concession.

(Sourced from BS)