Friday 1 April 2011

Environment & Development

Historically, all economic growths were centred on the Ports. The nations flourished through the Maritime trade. Of late the Government of Orissa realised that the importance of Port driven industrialisation rather than the out-dated concept of industry driven economic growth.  If ports are created, the industries will grow around the port and attract industry to import the raw materials or to export the value added finished products with cheap per ton cost of transportation. Actions of Government of Orissa in identifying 12 port locations for development can be appreciated. BETTER LATE THAN NEVER.
Rapid industrialization being the slogan of the day, the Government of Odisha should declare Ports as the priority service sector Industry.
Needless to mention that the mineral rich Odisha state is the poorest in the Country. It is important to realise that if the cargo generated within the hinterland of Orissa is to be handled through the ports as identified by the Govt. of Orissa the following requires specific attention for rapid faster implementation:
1.     Port industry has very long payback period. The Government of Orissa should provide proactive support to the port developers.
2.     Out of 480 KMs, 250 KMs is declared either defence area or ecologically sensitive region by GOI.  Recently MoEF, GOI has further banned some more coastline length where no port should be developed. The notification was based on natural erosion observed based on short time data. The validity of such data is questionable. Seasonal morphological changes should not be mistaken as the regular phenomena. The study does not take into account the rivers discharging into the sea and changes in the silt flow pattern contributed by construction of dams, barrages and the irregular monsoon. Proper engineering solution is available for such natural phenomena. A ban would adversely affect the Govt. of Orissa’s objective of rapid port driven industrialisation. As such obstructing the path of developments should be avoided.
3.     Govt. of Orissa should undertake all technical studies and obtain the MoEF clearance for the potential port sites.  After obtaining the MoEF clearance the Govt. should follow the routes of ICB for selecting Port developers rather than by nominations. This would attract more serious developers and there shall be a large share of revenue for Govt. of Orissa.  Once the risk of MOEF clearance is overcome, the development would be faster and Govt. of Orissa shall have high share of revenue earnings in addition to generating higher employment potential. Random signing of MOUs is not a solution

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