The Government today said Korean steel giant Posco’s Indian arm can set up a captive port near its plant in Odisha without any permission from the Centre.

According to the Indian Ports Act, 1908, development of any other port (private, captive or non-major), except major ports, vests with the State Government, Shipping Minister, Mr G. K. Vasan, said in a reply to the Rajya Sabha.

Answering a question on whether Posco-India has been granted permission to set up a captive port within 10 km of the Paradip Port (major port), he said, “The captive port (of Posco India) is a non-major port under the jurisdiction of the Government of Odisha. No permission is required from the Centre for setting up of a non-major, private port, except necessary statutory clearances from the nodal agencies,” he said.

Mr Vasan added, “There will be no diversion of cargo from Paradip to the proposed Posco-India port.”

Paradip Port will have adverse consequences only when the proposed captive port of Posco India Ltd starts handling cargo for other users in addition to their own cargo, he said.

Posco-India proposes to set up a 12 mtpa (million tonnes per annum) greenfield steel mill near the port town at an investment of Rs 52,000 crore.

Meanwhile, Posco-India and Paradip Port Trust (PPT) authorities have constituted a six-member joint committee to study the possibility of the steel major using the existing port facility at Paradip.

The team is expected to undertake survey work from April 2 and submit its report within seven days from completion of the study on April 14.

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