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Follow Bengal model on industry front: PRI

BHUBANESWAR: At a time when mega projects in Orissa are facing difficulties to take off, New Delhi-based Posco Research Institute (PRI) said the State Government should follow West Bengal model of handling industrial projects.

Presenting a paper on ’Outlook for Indian steel industry 2020 how would Orissa cope with the same’ at a steel conference here on Thursday, Chief Representative of PRI Chang-ho Kwag said the social infrastructure of the State was not proper to absorb mega projects. "Attitude and mindset of State Government and people towards projects need to be changed. Education of people to understand the real cost benefit of industrial project was necessary in which the state government has a big role," Mr. Kwag said.

"West Bengal can be a good example. Why is every good project taking shape in West Bengal? I think the State Government played a key role there," he said.

Despite being a State governed by Left parties, the State adopted itself in post-liberalisation era, the PRI Director said.

All the coastal states of India showed healthy GDP growth while Orissa lagged with 3.5 per cent rate growth compared to West Bengal’s nearly 6 per cent, he said.

"The Government needs to set up service mechanism for expediting mega projects," Mr. Kwag said. The Posco Research Institute said Chinese government had engaged two to three of its personnel for one big project so that they could take care of different processes and ensure project getting converted into reality.

The State Government has so far signed MoU with 46 steel projects, of which many are mega projects including 12 mtpa capacity plants of both POSCO and Arcelor Mittal, six mtpa steel project by Tata Steel, an identical capacity project by Sterlite Industries, 4 mtpa of Essar Steel and 3 mtpa Bhushan Steel.

Vice-President of Tata Steel Ltd, Varun Jha said Orissa had a great potential in steel sector but political leaders and executives needed to change it into reality.

Orissa Steel and Mines Secretary U. P Singh admitted there was problem in land acquisition but said the Government had formulated a good R&R policy to deal with it.

Finance Minister Prafulla Ghadai and Managing Director of Mjunction Services Limited Viresh Oberoi were present in the international steel conference.

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