Posco May Miss Deal Deadline

Posco May Miss Deal Deadline

Business Standard, Bhubaneswar

14th November 2005

South Korean steel major Posco is likely to miss the December deadline for signing of the final agreement for its 12-million-tonne mega steel project at Paradip in Orissa.

This was indicated by Posco chairman KT Lee, who is here to take stock of the progress made in the project. Lee, who met Chief Minister Naveen Patnaik at the secretariat, told newsmen that the final agreement "will be signed only after we get the feasibility report for the project."

He added that that the feasibility report would be ready by mid-December. This is at least two weeks behind the schedule mentioned in the memorandum of understanding (MoU) signed between the company and the state government on June 22 this year.

The MoU had stated that the feasibility study had been commissioned and the detailed project report would be available by November.

Now with the feasibility report expected only in mid-December, it would take some more time for the agreement to be signed.

"This will push the date of signing of the agreement to early next year," pointed out an official in the state industry department. At the same time, Lee said things were moving as per schedule.

The Posco India company had been incorporated and it had already applied for the required land and prospecting licence. He, however, refused to disclose details of the mining lease.