Bhubaneswar, Oct. 29: Decks appear to have been cleared for the South Korean major Posco’s 12 million tonne proposed steel project in Jagatsinghpur district.

The state government today hinted that Posco may begin work at the proposed site even before the renewal of its MoU, which lapsed in June last year.

Chief secretary Bijay Patnaik said: “Work for the steel project and the processing of the MoU can happen simultaneously. We will talk to Posco - India about the beginning of the work.”

Of the 4,004 acres of land required for the Posco project, 435 are in private hands. The government has already acquired 2,000 acres in the project area. The chief secretary said: “The state government has so far acquired 2,000 acres of land, on which the company can start work.”

The Union ministry for environment and forests has accorded final clearance to the project.

Posco-India has submitted its views on the controversial export clause in the previous MoU. “Posco-India’s views on the export clause are being examined by the law, steel and mines departments. The provisions of the MMDR (Mines and Minerals Development Regulation) need to be in accordance with the contents of the revised MoU,” he said.

Sources said Posco officials have given up their insistence on the swapping of iron ore, which was part of the original MoU signed in 2005, and also agreed to provide employment to local residents, a demand that the state government has been making. The company has also agreed to construct a jetty for the local fishermen and provide mechanised boats to them. Under the swapping clause, which was part of the original MoU, the company was allowed to import 30 per cent of iron ore with low alumina content from other countries in exchange of equal amount of ore from the state.

“They need high quality of iron ore with less alumina content. We don’t have any objection to that. It will improve the quality of the finished product,” said a senior government official closely associated with the project.

“There are many things involved while setting up a mega steel work. As the government of Orissa is committed to the project, the company can go ahead with the work,” said the official.

The nodal officer for the project, Priyabrata Patnaik, said steps were being taken to build the approach roads. “We have already acquired 2,000 acres of land. Once the approach road is ready, there would be no further problems.”

However, anti-project outfit Posco Pratirodh Sangram Samiti president Abhay Sahu said: “We will continue to oppose the project.”