Post News Network
Bhubaneswar, May 31: The state government has constituted a committee to review the progress of proposed steel projects and consider proposals of many project proponents for extension of MoUs.
Orissa, which has signed number of Memorandum of Understandings (MoUs) with private players for setting up integrated steel plants and pellet units, has seen shoddy ground level implementation.
Under these circumstances, it has constituted a five-member committee under the chairmanship of secretary, Steel and Mines department to consider the requests of project proponents seeking extension of MoUs.
“Validity/extended validity of several MoUs have expired and many project authorities are requesting for further extension as most of the projects have not been fully implemented,” a notification on state gazette said.
“Therefore, the state government has been pleased to constitute a committee consisting of five members to consider the proposals for extension of MoUs in steel sector on case to case basis,” the notification said.
While secretary of Steel and Mines will be the chairman of the committee, secretaries of Industries and Energy departments, member secretary of Orissa State Pollution Control Board, and managing director of IPICOL will act as members of the body.
The state government had signed around 88 MoUs with different steel, energy, aluminium, cement players in the last one decade. While many of the projects have been operationalised, some are yet to get off the ground. Issues like land acquisition, local opposition, green clearances have thwarted the implementation of these projects.
During this period, while global steel maker like ArcelorMittal had pulled out from its proposed steel project, uncertainty over South Korean major Posco’s steel unit is looming large.
Apart from project related issues, slump in global commodity market has also dampened interests of investors to pursue mineral-based projects in the recent time.