The Odisha government today decided not to give any fresh assurance on supply of raw materials to steel companies in the revised MoUs to be signed with certain steel makers whose earlier Memorandum of Understanding (MoU) validity period have already expired, official sources said.
Of the 49 MoUs signed by the state government for setting up steel projects, only two companies have valid MoUs while cases of others including Posco and ArcelorMittal are pending for renewal, the sources said.
The steel and mines department today issued a guideline on the extension of validity period of MoUs signed for establishment of steel projects in the state.
Stating that grant of further time or extension of validity of MoU may be considered in respect of deserving cases, the new guidelines will consider companies which have fulfilled their part of obligations as per the MoU or have made best efforts towards establishment of the project.
The state-owned Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) would assess the progress of implementation of the projects as per the existing MoU and make appropriate recommendation on the proposal for extension of the validity of MoU or grant of further time for completion of the project, the guideline said.
While making recommendations, the IPICOL will specifically report if the project proponent has fulfilled their obligations as per the MoU, made best efforts towards establishment of the projects, it said.