save life save dignity

Impact of SEZ Status

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POSCO gets a 10-year tax-break as a result of its being granted SEZ (Special Economic Zone) status by the central Government. Land will also be sold to POSCO at a lower than market price. These impose significant costs to the exchequer . The SEZ status of this project also removes it from the purview of the local panchayat governments, thus further decreasing the control of the villagers over their local environment. Further, the SEZ status also grants immunity to POSCO from adherence to hard-won labor and environmental laws designed to protect employees.

The number of jobs created due to the steel plant is supposed to number 13,000 and it is claimed that another 48,000 indirect jobs are likely to be created. These numbers do not justify the subsidies granted to the project, including the discounted price of Rs.2000 ($50) per ton of iron ore.


Written by janjagriti

October 12, 2008 at 8:30 pm

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