This comes close on the heels of domestic major Essar and Murugappa group inking MoUs for pumping over Rs 14,000 crore (Rs 140 billion) in the steel sector.
After the signing of MoU scheduled last month was deferred, Pohang Steel Company and the Orissa government are thrashing out the last minute details for clearing the deal by next month, government sources said.
The issue of iron ore export from the mineral rich state is yet to be resolved between Posco and Orissa government, but the Chief Minister Naveen Patnaik exuded confidence saying "discussions are on to work out things."
Serious reservations of the state government on this issue not withstanding, fresh response from the Korean company has generated hope among the top officials for thrashing out the differences, sources said.
"We are negotiating with Posco and are hopeful of finding a solution," Naveen Patnaik told PTI on the sidelines of the inaugural function of the Orissa Investment and Export Promotion Office.
Posco last week gave fresh suggestions to the government in working out the MoU but the officials said the government was still edgy about the insistence of the Korean company to have the ore export clause.