A six-member committee, consisting of three members each from Posco India and Paradip Port Trust (PPT) authorities will be constituted to examine feasibility of raw material imports by the South Korean steel major through this major port.
The decision to form the committee follows parleys between Posco India and PPT authorities on Thursday.
“It has been decided to form a committee consisting of six members — three from Posco India and three from PPT to conduct survey regarding the facilities and infrastructure available at the major port for meeting cargo imports and exports for the proposed Posco steel project. The survey will be taken up from April 2-14. Following the compilation of survey report, second phase of discussions will begin between the two sides,” PPT sources said.
A four-member team of Posco India officials led by the company's deputy managing director Ho Chan Ryu visited the Paradip port on Thursday and interacted with the PPT chairman G J Jagannath Rao and other port officials.
During the negotiations, the port officials explained at length about the available facilities and infrastructure and also the future expansion of the port.
“The first round of discussions between PPT and Posco India was held on Thursday in Paradip. The steel company had sent its team to study our facilities and we expect good response from Posco for using our port in cargo handling,” said deputy chairman of PPT Anant Kumar Bose.
During discussions, Posco officials clarified that the company would be importing about 25 million tonnes of raw materials for the proposed 12 million tonne per annum (mtpa) steel plant in Paradip. Phase-I of the mega steel plant with an envisaged capacity of four mtpa was expected to be operational by 2016.
Posco was keen on using infrastructure of Paradip port for meeting the cargo requirement of its steel mill.
Last month, the PPT chairman, through a written communication, had given a proposal to Posco India, stating that the port had adequate infrastructure to meet the steel maker's cargo requirement. Earlier, the PPT chairman had also interacted with Posco India CMD Yong-Won Yoon regarding use of two berths by the steel company.
It may be noted that Posco India had proposed a captive port facility at Jatadhari Muhan in Jagatsinghpur district within 10 km of the Paradip port. The location of the port in close vicinity of the Paradip port had raised concerns about its impact on the major port's operations.
The state government has asked Posco India authorities to submit detailed project report (DPR) for the port project.
The Union ministry of environment & forests (MoEF) had already given its nod for the captive port of Posco India.
