POSCO, a South Korea-based steel company, the world’s fifth largest steel producer has recently signed a Memorandum of Understanding with the Orissa Government
to build an integrative steelworks
at Paradip for an investment of $12 bn (Rs. 52,000 cr).
The total production capacity of this project is estimated to be 12 MT. The project is to be completed in two phases. Initially, POSCO will invest $3 bn to construct a steelwork with a 3 MT capacity by 2010.
Gradually, the capacity will be increased to 12 MT. Full capacity is to be commissioned by 2016. The Korean company is expected to create world-class infrastructure for its plant. Apart from the plant, construction
of a port with a big berth to accommodate capesize vessels, a captive
power plant, a township, industrial
water pipelines and a rehabilitation colony are on the cards. This project is expected to create approximately 13,000 direct and 35,000 indirect employment opportunities, as per the Orissa Government’s estimates. It will directly help industries like refractory, cement, transportation, construction and shipbuilding. Increased business activities will also help the government
accumulate revenues by way of taxes. Over a period of 30 years, the central and state governments are expected to garner revenues to the tune of Rs. 89,000 cr and Rs. 22,500 cr respectively.
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