POSCO project boost Orissa economy-NCAER

Bhubaneswar, Nov 23 (UNI) South Korea Steel major POSCO's proposed 12 MTPA Steel Plant in Orissa will set up a chain reaction on the state's economy.

According to a recent study conducted by National Council of Applied Economic Research(NCAER), the investment by POSCO-India will increase gross output, employment and value addition.

The report said POSCO-India would invest Rs.52,810 crores to construct a green-field steel plant, develop iron ore mines and also construct support-infrastructure in both the Domestic Tariff Area (DTA) and the Special Economic Zone (SEZ) in Orissa.

The project when completed would generate Rs. 29,760 crores of additional output for the state and in terms of value addition, it would contribute 11.5 per cent to the estimated State Gross Domestic Product(SGDP) by 2016-17.

The study further revealed that it would generate employment of 8,70,000 persons a year across all sectors of Orissa economy over the next 30 years. This would consume almost all of the current unemployment backlog of 9.9 lakhs in the beginning of 2005-2006.

Apart from 18,000 direct employments by POSCO-India, numerous jobs are expected to be created in the Agro&Forest, Mining, Manufacturing, Trade, and other service sectors.

Similarly,under the SEZ status, the company would contribute a total of Rs.174,971 crore of tax revenue to the state and Central governments for the next 35 years at a nominal value,the NCAER study pointed out.

It further said the overall benefits Orissa would receive from POSCO-India Project in terms of generation of value addition, employment and tax revenue would be unprecedented and far greater than the tax exemption that POSCO-India is expected to receive under the Special Economy Zone(SEZ).

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