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Journalism of Courage
Orissa Chief Minister Naveen Patnaik deserves to be congratulated for bringing the biggest FDI project ever in the country to one of the poorest states of India. The Korean steel company Posco Steel has signed a deal with the Government of Orissa to invest US $12 billion in a steel plant at Paradip. More often in the news for its extreme poverty, and for natural tragedies like floods and cyclones, this project will bring a burst of new energy to a backward state. The project will create 13,000 jobs directly and an estimated 35,000 indirectly in related sectors like ancillaries. It will have a multiplier effect impacting trade and services favourably, raising income and creating jobs.
The next challenge before the Orissa government is to make sure that there are no delays in the implementation of the project. All too often bureaucratic hurdles, political opposition and local interests prevent projects from being completed on time. The necessary infrastructure must be provided and support ensured. Patnaik has to resist political pressure to put conditions on Posco regarding the export of iron ore. There is an absurd argument that Posco should not be allowed to export iron ore because it is a natural resource. In other words, natural resources should be kept for the welfare of the state’s citizens. By the same logic, these activists may tomorrow argue that OPEC nations should not export oil to India. They should keep it for the use of their own citizens. Such decisions are, in any case, best left to the market. If there is enough demand in India for the ore, the price will be such as to make it attractive for a company to sell it domestically.
