It?s been 50 days that the Orissa government MoU with Posco India has lapsed, and government sources told FE it has sought clarification on 11 issues from the steel giant before it renews the MoU.

Sources in the government told FE, ?We have asked clarification on 11 points for the renewal of the MoU.? State-owned IPICOL had recommended the state government to renew Posco?s MoU for two years, instead of the five years that the steel major had sought. However, the steel and mines department of the state government has asked clarification on issues relating to mines, land use and employment opportunities.

Orissa steel and mines minister Raghunath Mohanty said: ?We are examining the MoU and a decision will be taken very soon.?

However, government sources said it would take some more time to renew the MoU for the 12 million tonne plant planned at Jagatsinghpur district.

The state government, which has come out with a new policy on employment in the MoU projects, is insisting that the new Posco MoU should commit to the new employment policy.

The state government has made it mandatory for MoU projects to reserve 90% jobs in the unskilled and semi-skilled category, up to 60% in skilled category, and 30% for the supervisory and managerial cadre, for locals.

According to sources, Posco-India does not agree to this new clause in the MoU on the ground that this policy has no constitutional validity and it will not stand the scrutiny of law.

The Orissa government had signed an MoU with Posco India on June 22, 2005 to set up a steel plant with an investment of Rs 51,000 crore, billed as the largest foreign direct investment.

Meanwhile, the state government has announced that it had acquired 1,000 acre of land in four villages of Gada Kujanga gram panchyat for Posco-India?s project.

?The government has taken possession of over 1,000 acre of 4,004 acre land required for the project,? said the revenue divisional commissioner (central range)

PK Mohapatra, adding that the land included forest land, revenue land and about 52 betel vines. However, no land has been handed over to Posco so far. Mohapatra said a joint task force will be set up to protect the land acquired so far to avoid a Kalinganagar type situation.

The Jagatsinghpur district administration has submitted its report in response to the allegation of violation of Forest Right Act in Posco?s proposed project site. The report has been sent to the state forest and environment department.

Following the direction of the ministry of environment and forest, the district administration has stopped work such as survey and land acquisition in the proposed site.