Bhubaneswar, Aug. 5: The Orissa government will renew its MoU with South Korean steel major Posco for the proposed 12- million tonne steel project only after the company responds to the government’s queries.

Chief secretary Bijay Patnaik said: “The company has not yet responded to our queries.'

In the first week of July this year, the state government had asked the company to give in writing that they would drop the swapping clause. Under the clause, Posco was earlier allowed to import 30 per cent iron from other countries in exchange for an equal amount from the state.

Orissa has also asked Posco to give an assurance about the recruitment of local people at the plant and development of downstream industries. The MoU between the state government and the company lapsed on June 22, 2010.

The chief secretary made the statement after attending an inter-ministerial group meeting. Union steel secretary P.K. Mishra and representatives of big-ticket steel projects were present.

On the issue of relocation of proposed Posco site because of stiff resistance from local residents, the Union steel secretary said: “It is for the state government to decide. The Centre will listen to local people and the state government. Mega projects do take time because one has to deal with a number of issues.” The meeting also discussed how to expedite the road and railway network between the proposed projects and the mining areas.

Mining lease

The Supreme Court today asked all parties in the case involving cancellation of prospective iron ore mining lease to Posco in Orissa’s Sundergarh district to complete their legal submissions within six weeks to facilitate an early hearing.