Posco studies environment impact of port at Paradip

South Korean steel major Posco is undertaking studies to guage the environmental impact of its proposed captive port near Paradip in Orissa.

The company, say sources close to the development, has earmarked about $300 million (Rs 1,350 crore) to set up the port. "It is necessary to understand the impact of the port, and the company wants to design a port that will have the least impact on the local environment. It wants a nature-friendly port," sources said.

The proposed port will have two berths - one to handle raw materials of up to one lakh tonne, and the second to handle 20,000 tonne of finished steel products. It will be located about 10 km from Paradip, sources added.

The steel major had earlier submitted a proposal to set up the captive port to the Orissa government. The South Korean company was given a choice of either using the present facilities of the Paradip port for its steel plant in the area or opt for a captive port.

With the Paradip facility already "congested", and with more multi-million tonne worth steel plants coming up, Posco has opted to set up its own port. Paradip Port Trust officials have reportedly opposed Posco's decision, and the state government has indicated that it will take a decision only after the feasibility studies have been done.