What are the measures that POSCO-India is taking to protect the interest of PPT – function and revenue wise?
POSCO-India’s captive port is a supplementary facility of the steelworks, and not for business purposes. It will have no impact on the business of Paradip Port; rather, it will lead to mutual benefits.
In the future, Orissa, especially the Paradip area, will grow as the centre of the manufacturing industry. During such times Paradip Port is expected to be the main controller of the drastically increased logistics of this area.
It is expected that the materials and equipment required for the construction of the steel plant and port will be transported through Paradip port. Basically, since the proposed port is captive port for the steel plant only, the other cargoes will be transported through Paradip port.
Will the captive port only be used for POSCO-India’s purpose or for other commercial use?
The captive port is not a commercial port like Paradip port, so it will be operated only for the steel plant. Consequently, the captive port will not affect the present and future cargo volumes of Paradip port.
Who will monitor the activities at the port – only POSCO-India or POSCO-India along with other Govt. authorities?
It has not been decided who would monitor the activities at the port. We expect that it will be decided during the progress of Concession Agreement between POSCO-India and State Government of Orissa.
How do you plan to overcome the ongoing resistance by a major section of to be displaced people and counter anti-POSCO movement?
We are working steadily to spread accurate information on the project. We are attempting to address all points of concern that are causing the opposition and are continuously working toward proliferation of the facts. Especially there are plans to address the needs of the families affected by the steel plant construction (Directly and Indirectly Affected Families) through the new R&R Policy of the State Government of Orissa.
How long will POSCO-India wait if the land acquisition is delayed?
The first stage of land acquisition has been delayed due to the Kalinganagar incident. However, we plan to strictly adhere to the new R&R Policy of the State Government of Orissa which is acknowledged as the best policy so far in the country. Presently the issues are being sorted out in a strategic manner and we hope that we gain the trust of locals through our goodwill gestures. Moreover, we are working towards minimizing the impact of the delay on the overall progress of the project.
What kind of benefit, in monetary terms, is the state going to get from the project?
According to a recent study conducted by National Council of Applied Economics and Research (NCAER) on the socio-economic cost-benefit analysis of the POSCO-India project, the mega steel plant will initiate unprecedented economic benefits and also fuel a chain reaction in the economy through employment, value addition, tax benefits and gross output. It will create 18,000 direct employment out of which about 97% will be Indian workforce. The indirect employment generation will be a staggering 8,52,000 person-years in agro & forest, mining, manufacturing, trade, and other service sectors.
In addition, the project will contribute to 11.5% growth towards Gross Domestic Produce of Orissa by 2016-2017. The tax revenue earned by Govt. of Orissa will be to the tune of Rs77,870 Crores in the next 35 years.
When will the construction for plant start?
There are plans to start construction by second half of 2007.
What will be the phase wise capacity?
We plan to build the 12MTPA integrated steelworks by constructing plants of 4MTPA capacity, in 3 phases. In the 1st phase, we plan to produce slab (1.5MT) and hot rolled coil (2.5MT) for marketing. The 1st phase construction is scheduled to be completed at the end of 2010, and we plan to start marketing products from 2011.
Why should Govt. of Orissa accord SEZ status to POSCO as there is a chance of revenue loss?
SEZ is only applicable to export. The reason why government introduced SEZ policy is to attract investment. If tax exemption is not provided, investment itself will not come. The benefit from the investment is much more than the tax gain.
It is in basically to improve the income of the citizens through employment created by the investing industries. The second reason is for the improvement of the national industry as well as national competitiveness, by activating investments of industries. SEZ benefits are not only meant for POSCO-India, but apply to all SEZ companies.
Does POSCO-India’s water intake affect agricultural irrigation in dry weather?
POSCO well knows the importance of natural resources. Especially water resource is limited. POSCO has invested into technologies to decrease the water requirement. The company will minimize water usage, save it by recycling. We plan to draw in only 2 ~ 3% of required water, and recycle the remaining 97%.
POSCO-India needs only 117 cusecs of water at final stage (37 cusecs for each phase). There will be no interference with supply of Taladanda canal by POSCO’s water requirement and at no point of time there will be scarcity of water.
Why not use sea water – (desalination process)?
It is more feasible and cost-effective to use water from Mahanadi River as there is more than sufficient water supply from the River. Constructing special equipment to take in sea water by the desalination for a mega project like POSCO-India would not be a viable cost-effective option.
There is lot of uproar that POSCO-India's SEZ status and project plan will ruin fertile agricultural land. Is it true?
The total identified area for the POSCO-India Project is 4,004 acres. 438 acres of private land will be purchased in Company's name and 3,566 acres of government land will be acquired on lease.
Out of the total identified area the agricultural land consists of about 392 acres, and only about 30 acres (0.8% of total area) is prime agricultural land with double crop. Homestead and non-agricultural land consist of 46 acres in the private land. There is forest land of 843 acres, gochar land of 78 acres, communal land of 356 acres and leasable government land of 2,289 acres. So the claim is not justified.
