The Hindu : National : POSCO pact will hit economy: CPI

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Monday, Sep 12, 2005

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National

POSCO pact will hit economy: CPI

CUTTACK: The Communist Party of India (CPI) has called upon all parties, irrespective of their affiliations, to oppose the MoU signed between the Orissa Government and South Korean steel major POSCO for setting up a steel plant at Paradeep.

Addressing a party convention organised to oppose the MoU here, CPI national secretary D. Raja warned that

``if the MoU is allowed in its present form and manner it would be very difficult to check the entry of other multinational companies in the country."

Revenue loss

The CPI was not opposed to FDI provided it augmented the economy, upgraded technology and helped build assets and generate employment.

But since POSCO was a capital-intensive, it would not generate employment and instead would displace thousands of people, affect agriculture, create water scarcity and pose a threat to the port.

The Government would also lose revenue amounting to crores of rupees due to the various concessions given to the company, he alleged.

Like the Honda Motorcycles and Scooters India in Harayana, POSCO might ask for an end to trade union activities, he apprehended.

The plant would need a huge quantity of water and the "Mahanadi river would be under stress" and it would be difficult to maintain the minimum level to operate the hydropower units. Agriculture would be ruined in five coastal districts and in an equal number of districts in Western Orissa as there would not be enough water, he feared.

UNI

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