TEHRAN – To keep up with steel production capacity envisaged in the Fourth Socioeconomic Development Plan (2005-2010), Iran’s Economic Council has agreed to construction of eight 800,000-ton steel mills in various points of the country, the Persian service of ISNA reported on Tuesday.

Qatruyeh, a district of Neyriz in southern province of Fars, is such a candidate on the list. One validation for selecting this location is its proximity to Gol-Gohar quarries and Cheshmeh-Asheq Dam in the region.

However, there are two opposing views, or at least reserved ones, with building a complex of this magnitude in this location.

Some experts believe that the spot is too close to adjacent province of Kerman in the east, and substantial amount of the investment and considerable number of side industries may find their way to the province other than the designated one. Consequently, less job opportunities would be available to local population.

Others voice their concern about the level of rainfall in this semi-arid area with ‘weak’ underground water basins. Moreover, no credit has been offered for the dam in years and the locals have not observed any water from the spring(s) in downstream. There are several dams in Fars with millions of cubic meters of reserve which seem more expertly to select for this venture, the argument runs.

The 800,000-ton steel mill is estimated to call for Rls.3,000b of the government’s money, and with prospect of getting private sector involved in the side industries, the total investment could be doubled in amount. ML/MA END MNA