The following three are very important points to consider, as we get on with industrialization of Orissa.

1. Externals - who restores the environment or pays for the environmental costs? Please see this issue discussed by experts like Al Gore in Wall Street Journal and Dr. Sanat Mohanty in The South Asian.
• http://mathtalentsearch.blogspot.com/2007/05/for-people-and-planet-al-gore-and-david.html
  
• My blog: http://mathtalentsearch.blogspot.com/2006/06/revisiting-orissa-development-plans.html
  
• http://www.thesouthasian.org/archives/2005/economics_of_externalities.html
  
2. Paying fair price for:
1. Ores/inputs To me it does not make sense to sell higher quality iron ore at $0.57 cents(Rs. 27/Tonne) when world open market price is $84.40. Kindly see the blogs below.
   
• http://steel-industry-info.blogspot.com/search/label/EconStat%3A%20Iron%20Ore%20prices
• http://mathtalentsearch.blogspot.com/2006/12/why-cant-we-sell-at-iron-ore-at-world.html
  
1. Rehabilitation of the displaced: I like the idea floated by Baijayanta Panda to first do the rehabilitation and then the plant. TATAs claim ( http://infosources.blogspot.com/2007/05/tata-steel-for-rehabilitation-first.html ) to be doing the same, but the facts have to be checked in the ground and may be by a credible 3rd party.
   
3. SEZ: By the by Vedanta's SEZ were sanctioned yesterday: http://infosources.blogspot.com/2007/05/17-new-sezs-get-nod-ril-on-hold.html
1. Sudhansu Mishra, ex- Chief Secretary gives a very persuasive argument to Sachi Sathpathy, quoted here: http://steel-industry-info.blogspot.com/2007/05/former-chief-secretary-and-chairman.html
2. Manornajan Mohanty and many others argue in Sachi Sathpathy news letters argue that it is not in the interest of the state to allow it because it is not a net revenue earner for the state. Sudhansu babu's argument is very persuasive and logical. No one has been posted any credible counter argument, so far.
   
3. Even Indian Industry giants like Rahul Bazaz don't have a good word for SEZs. http://infosources.blogspot.com/2007/05/sezs-are-turning-into-land-scam-rahul.html
   

I hope this will bring an informed consensus on the subject. My major concern is if there are all benefits are to the industry only. If SEZ result in net out flows and no inflow for the state ex-checker, how do the issues like education and health, get funding? If not today tomorrow Orissa will have schools that will teach (there are 40% vacancy in schools and colleges for want of money) if only there is significant inflow of funds.
Else it is like the folklore division of family milch cow between two brothers - one gets the front and has responsibilities like feed and medicine. The other gets the back side and so enjoys the milk, cow dung etc. I see in SEZ's Govt of Orissa and people of Orissa getting the front end and the TATAs, POSCO, Vedanta etc. getting the back end of the milch cow.
There are no facts to convince me otherwise. I calculated that 600 million tons of Ore(ref POSCO MOU) will bring Orissa about $335 million or about 1500 crores over whole life of the project. No taxes in the 1st 5 years and only 50% over next 5 years. And GOO has liability to provide roads and infrastructure(water, electricity). Even if you forget about the funds for development of the state of Orissa, which is the stated goal of this initiative, tell me where will the money come even for these infrastructure liabilities?