Posco port may get govt nod soon
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.
By Subhash Narayan, TNN |
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.
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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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