Synopsis:
The article is an Opinion Editorial carried by Mr. R Venkatesan who is also a member of NCAER. With the opening of the economy, hordes of investment from multinationals have come in. POSCO-India project, being the biggest investment in the state of Orissa is one example. Apart from the revenue earning part, the government must ensure that overall development of the state is also taken care of. The writer discusses the NCAER report findings, which states that POSCO-India project would create employment of 50,000 person years annually for the next 30 years. India’s medium grade ore at present is at a figure of 1.3 billion tons and if indicative figures are also factored in then the figure goes up to 2.8 billion tons.


India’s high and medium ore reserves would not last for more than 19 years, even if the export of iron ore is frozen.


The author advises the Eastern States to raise the mineral sector’s share in their GDP by setting up processing facilities in their states. Exports of iron ore needs to be restricted to grades other than medium and high grade iron ore. In order to gauge the likely impact of a project on its people, state must commission a SCB analysis as Orissa has done for POSCO-India project.