While there is a debate going on at the State Government level over allowing a captive port for the JSW Steel limited’s (JSWSl) proposed 12-MTPA Integrated Steel Plant (ISP) at Paradip, top industry consultant MECON has favoured the greenfield project with a captive port.
The JSWSl has intended to set up a captive port at Jatadhari Muhan and urged the State Government to approve the proposal, according to reports.
After the proposal presented to the State Government, lots of discussions were held but no conclusion over the intended Captive Port had been reached. On the advice of the State level Single Window Clearance Authority (SlSWCA), the IPICOl had asked the MECON, a Government of India consultant, to give an opinion in this regard.
Recently, the MECON studied the situation and has reported that a Captive Port is essential for the financial viability of the greenfield project.
The JSWSl would set up the 12-MTPA ISP on the land acquired for the Posco, which has moved back from its project due to various hurdles.
As Posco had not been allowed for a captive port for its 12-MTPA project, questions are now being raised as to how the JSWSl would be allowed the same.
Now, the MECON’s suggestion would work in favour of the JSWSl, viewed many.
In its report, the MECON has mentioned that if a captive port would not be allowed then there would be huge requirement of earth for leveling up the required land above High Tide level and 42 million cubic metre earth would be required for the project.
Digging of such an amount of earth and its transportation would have strong impact on environment and ecology of the area covering 50 km from Paradip. And with a Captive Port, the handling of material not only economical but also utilizes natural resources in optimal manner, it remarked.
A Captive Port for an ISP is far more economical and without such a facility, the proposed JSWSl ISP would not be viable, pointed out the MECON.
The National Council of Applied Economic Research (NCAER) in its report has also favoured such an idea citing similar reasons.