"The MoU will signed by end of the month as all issues between the state government and Posco have been sorted out," Ram Vilas Paswan, Union Steel Minister said.
Paswan said the Korean company had agreed not to press for additional 300 million tonnes of iron ore, which was intended to be exported by as its need was only 600 million tonnes.
"We had opposed this. This was similar to state government's views which had rejected Posco's demand for extra 300 million tonne iron ore," Paswan said. Posco was to sign the deal for 12 million tonne steel plant involving an investment of Rs 40,000 crore (Rs 400 billion) on April 14.
The company, however called off signing of the MoU, taking a strong view of the Orissa government's opposition to export of iron ore from India.
The steel ministry has also cleared the long-pending merger of steel PSUs, IISCO and Steel Authority of India. The proposal is now awaiting Cabinet nod, Steel Minister Ram Vilas Paswan said today.
He said the new entity would have at its disposal 35-40 million tonnes iron ore reserves lying with IISCO. Paswan said the ministry was holding discussions on whether to create two separate entities-- one for iron ore mining and other for steel production.
"We are looking into the issue from management point of view and every proposal has its own pros and cons. So we are not in any hurry," he said.
