Business Standard reported that with MoU of almost all steel companies pending for renewal and running units battling raw material crunch, the Odisha government has decided that it would not give any commitment on raw material supplies in fresh pacts.
The state chief secretary Mr BK Patnaik on Saturday held discussion with senior officials on extension of lapsed MoUs of steel projects. Since the law department has already ruled out renewing lapsed MoUs retrospectively with the steel players, the state government will enter into instruments or fresh pact with the promoters.
A senior government official told Business Standard “We are not going to make any commitment on raw material supply to the steel industries in the fresh MoUs to be signed with the promoters. The new MoUs will also make no mention of state recommending mineral concession in favour of a company. Recommendation for mineral concession will be made solely on the basis of merit of the applicant driven by considerations like value addition and employment generation.”
Odisha government had signed 50 MoUs for steel projects, out of which 30 have commenced production partially.
