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Posco steel project may spell disaster
By agencies
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Wednesday, 21 December 2005, 20:30 IST
NEW DELHI: One of IndiaÂ’s biggest steel projects may be at a risk of being called off as the government has warned that PoscoÂ’s proposed port could lead to severe erosion along the coastline.
South Korea based Pohang Steel Company, the fourth largest steel maker in the world, has proposed to set up a steel plant in Orissa at an investment of $10 billion and wanted to build a port at Jatadhari to transport the steel. However the government has warned that the port could lead to severe erosion along the coastline posing severe threat to the Paradip Port.
"Government of India as well as the Paradip Port Trust have impressed upon the government of Orissa that the Paradip Port after deepening of its channels will be in a position to develop its deep draft dock system and the facility can be made available on captive basis to Posco," shipping minister T R Baalu said.
He said the Orissa government has been asked to undertake intensive and detailed study regarding erosion if they decided to develop a minor port for the Korean steel giant and associate the government and the Paradip Port with such studies, he said in a written reply to a query.
The said project could spell disaster for the Paradip Port as erosion downstream and deposits upstream could wreak havoc on it, Shipping Ministry sources said.