Dear Sachi babu:

Today there is a front page coverage of this issue in Wall Street Journal.
I have gone through much of the postings of people but found most of the people are giving their opinion, substantiating with little facts. Lot of opinions but scanty facts or arguments, and lots of emotion. I really like Sudhansu babu's posting. It it more holistic. It exposes the Give Aways called SEZ, with no holds barred.

It confirms my own empirical calculations that SEZ and selling Iron Ores at a fixed price of $0.57/ Tonne or Rs 27/ Tonne, has nothing in it for the people of Orissa, as the GOO is peddling. No doubt the likes of POSCO are queuing up for super profit.
Today I was reading the MOU of POSCO ( http://orissagov.nic.in/posco/POSCO-MoU.htm ). What is the reason to give away such enormous resources at such throw away prices? I don't know where from GOO will get the money for making the infrastructure development & when? Because when GOO sells 12 million tonnes of Iron Ore(required for 3 million tonnes of steel) it gets only $7 million per year from POSCO at $0.57 / tonne for the 3 million Tonne phase I, Module 1. At the max it will reach $28 million/year only with 4 modules in operation. So meager a sum, I am hoping/wishing I have made some calculation error. If the biggest FDI results in such paltry return for GOO where will it get the money to make the promised roads etc? I still remember the 1 paisa contract per 1 kw of power by GOO with Hirakud Aluminium Company. We produced at 14/25 paisa and sold them at this price for a long long time. I think as an Engineer that Industry will bring us prosperity but if we make contracts and sign like our predecessors made with East Indian Company, it will lead to similar disaster. Won't it? With the arguments forwarded by Sudhanshu babu I am convinced that SEZ is a bad idea. This has since been authenticated by such a man as Mr. Bimal Jalan, ex-Governor of RBI, in your news letter today. It appears more like "Hari loot" of the Govt tax money, to forgo all taxes for 5 years and 50% for the next 5 where the Original in China envisions 2 and 2. And no tangible return, makes no sense where there is no necessity. On the land my main objection is that, even if the market price is given it is against food security of the country and many of us remember long control lines of 60s. With Indian population density more than 11 times that of USA, asking for company town is an out dated idea, a luxury we can't afford. If POSCO could do with only the Steel plant related land then they could probably do with less than 1000 acres. In such a case the private land all around could be developed and with developers building high rises the villagers will benefit enormously. Is not that our goal? All the GOO need to do in association with POSCO give a master plan to which the private people will build so that common sewerages and drains & other facilities can be provided and, whose cost can be shared. Recently a land of 11 acres in BBSR was auctioned by GOO and the highest bid was 220 crores( ). So why deprive our people of such potential? If POSCO's intent is not go into land speculation business and acquire land like Tatas in Jamshedpur, leaving buildings to private enterprise, it will be a win win situation. Because it will free up a lot of it's capital, is not it? Best wishes, Sandip