Posco eyes April start for Paradip steel project

Bhubaneswar: Posco India is hopeful of starting work on its proposed Rs 51,000 crore, 12 million tonne integrated steel plant near Paradip from April 1, 2008.

“We have spent the last two and half years clearing the minor hurdles and hope to overcome them very soon,” said Soung Sik Cho, chairman and managing director, Posco India.

Addressing members of the Utkal Chamber of Commerce and Industry, the Posco chief sought the cooperation of local industries towards setting up the plant as they would have an important role to play in the construction work.

He mentioned problems over land acquisition and getting mining lease, but said that both the state and the central governments had extended their support for the project, which is what also made him optimistic about starting work by April 1.

Soung said Posco India aimed to build one of the world’s most competitive integrated steel plant near Paradip that would contribute to rapid economic progress of Orissa in areas of manufacturing, services, trade and agro-based businesses.

More than 25,000 people would be employed directly on account of the project and over 50,000 people would find employment indirectly by 2020, he said. The project is expected to generate about Rs 1,75,000 crore by way of tax in 35 years.

Soung estimated an annual value addition of Rs12,100 crore, which will amount to 11.5 per cent of Orissa’s GDP by 2016-17.

He promised that the 500 displaced families will be fully rehabilitated with jobs, land and housing in addition to suitable compensation.

Similarly, massive infrastructural development in rail, road and social infrastructure will be taken up, benefiting about 20,000 people.