Sunday, January 28, 2007

Posco port may get govt nod soon


SUBHASH NARAYAN

TIMES NEWS NETWORK[ THURSDAY, JANUARY 25, 2007 12:00:00 AM]

NEW DELHI: Even as Posco’s SEZ (special economic zone) proposal faces
uncertainties, the steel maker is all set to get government’s approval
to construct a port to support its proposed 12-million-tonne (mt) steel
plant in Orissa.

The expert committee on infrastructure under the ministry of environment
has given in-principle clearance to the Posco port project and once the
company completes a public hearing on environmental impact, the final
clearance would be obtained, sources close to the development told ET.

Posco plans to begin work on its captive port sometime in April as final
clearance would come about in March, sources added. The Korean steel
major plans to invest about $900 million in developing the captive port
facility at Jatadhari, 12 km from the existing port at Paradip. The
project is expected to be developed in two phases.

In the first phase, it will have a capacity of 10 million tonnes per
annum (mtpa) and will be expanded up to 31 mtpa. The break-up will be 15
mtpa of raw material imports and 16 mtpa of product exports. For import
of raw materials (iron ore, coal and other sub-materials), five berths
with a total length of 1,590 metres are planned to be constructed and
for export of products (export slabs, hot coils), eight berths (1,770
metres) will be built.

The company intends to feed its market hubs in Kolkata, Chennai and
Mumbai from this port, the sources said. The clearance for the Posco
project would be a major development for the steel maker. The project
was earlier opposed by environmentalists who said it would adversely
affect the nesting beaches for Olive Ridley sea turtles in a nearby
marine sanctuary.

Shipping minister TR Baalu had also expressed apprehension that the
Posco port was likely to affect the operations of nearby Paradip port.
Posco was earlier offered berths at the existing Paradip port, which the
company declined due to its smaller cargo handling facility.

Ever since signing MoU with the Orissa government for its steel plant in
2005, the Posco project has faced numerous hurdles. The latest being
delay in grant of SEZ status to the project.

While the company’s proposal to set up a multi-product metal-based SEZ
has been given in-principle approval by the Centre, it is now expected
to be delayed as the government is working on a rehabilitation and
resettlement policy before clearing any fresh proposal for SEZs.

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