No shifting of Paradip plant: POSCO-India chief

Bhubaneswar, Jun 21: POSCO-India Chairman cum Managing Director Soung-Sik-Cho today ruled out any change in the location of its 12 million tonnes Steel Plant at Paradip following agitation in the area.

Talking to newspersons on the eve of completion of one year of signing the MoU with Orissa government for setting up the mega steel plant at an estimated cost of Rs 52,000 crore, the largest FDI in the country, Mr Cho said majority of people in Orissa had welcomed the project.

'' It was only a handful of people who opposed the location, but we would like to sort out the problem with them through constant interaction,'' he stated.

He said POSCO-India has modified its plant layout 60 times with the aim of minimising displacement of the local people, and added that the company would soon implement a comprehensive Corporate Social Responsibility (CSR) programme with focus on the local welfare.

The POSCO-India CMD also ruled out any change in the MoU signed with the Government on setting up of a minor port near Paradip and captive mines for establishing such a mega steel plant.

On being asked whether the Company would go ahead with the plant if the captive mines were not allotted in its favour, Mr Cho said in that circumstance POSCO might think of some alternative.

POSCO had already applied for prospecting license for three mine blocks in Keonjhar and Sundargarh district in September 2005 and planning to formulate a Mines Development Plan to take the initiative forward.

But the Hoda Committee set up by the Planning Commission, has recently submitted its recommendation suggesting that no captive mines be allotted in favour of industrial houses for setting up of steel plants in the country.

Mr Cho was hopeful that the state government and the Centre would extend all co-operation for giving SEZ status to the Steel Plant and permission to have their own Port close to Paradip.

He, however, denied that the setting up of a minor port at Jatadhari muhan would have any adverse impact on the economy of Paradip Port .

Mr Cho said the POSCO after setting up its Indian subsidiary in August 2005, had made an initial investment of 51.3 million dollar in the project and was planning to bring in the best and state of art FINEX technology to India which would be more environment friendly than the conventional process. On being asked whether the FINEX technology would reduce the swapping of iron ore as suggested by the company in view of high alumina content in the iron ore, the POSCO-India CMD said ''we are yet to judge the composition of iron ore available in the mines in Orissa''.

He, however, said the success of the POSCO-India project in Orissa would send out a positive signal to the world that there is a multi- billion dollar opportunity to build indian infrastructure.

Mr Cho said the POSCO-India was contemplating to kick off site preparation for steel plant construction and building of piling for Port by April 2007 as arrangement for water and power supply to the port and steel plant were expected to be completed by March next.

To a question, he said, the company would strictly follow the guidelines as stipulated in the new Rehabilitation and Resettlement Policy recently announced by the state government with special emphasis on its Project.

UNI