With Union environment minister Jairam Ramesh virtually slamming the door on new infrastructure projects in the high erosion coastal zones in the country, coastal states like Orissa and Gujarat, currently the favourite destinations for investment by many industrial houses, are set to lose out on coastal development which can spell prosperity for these regions.

"No new construction will be allowed in the high erosion coastal zone and projects in the low and medium erosion zone will be cleared only after comprehensive environment impact assessment and they will be subjected to cumulative assessment,” Ramesh had said on Wednesday.

Even before the ramifications of the move are to be felt, seasoned politicians in Orissa have already cried foul over the move, terming it as 'politically motivated'.

The ruling Biju Janata Dal (BJD) in the state which has of late squarely blamed the Centre for stalling big ticket investment projects in the state and has stepped up the ante against the Centre, has questioned the timing of the minister's statement. It may be noted that Ramesh's statement has come after his ministry issued the stop work order on the Posco project and sealed the expansion plans of Vedanta Aluminium Ltd.

"At this moment, the announcement of the Union environment minister Jairam Ramesh is not congenial. For the past one year or so, we feel that the Centre has been deliberately stalling major investment projects in the state out of jealousy or due to political reasons”, said BJD stalwart and state agriculture minister Damodar Rout.

"The Centre is creating imbalances as a result of which the developed states are benefited more and the developing states are neglected. Orissa is blessed with rich coastline and mineral resources and the Centre needs to fine tune its policies in a manner that coastal states are benefited”, he added.

K V Singh Deo, senior BJP leader said, “If the environment minister means to put a full stop to infrastructure projects in the high erosion coastal zones in the state, the impact will definitely be humongous on all coastal states in the country. The move would stunt the industrial growth of coastal states and these states need to take up the issue with the Union environment ministry. At the same time, coastal erosion cannot be overlooked as in Orissa, the erosion of the coastline has already been witnessed in stretches in Puri, Konark and Paradeep.”

Officials of the state environment department, have, however, allayed the apprehensions, stating that the move will not impact the projects proposed in the coastal areas of the state.

"None of the proposed projects in the state including the locations identified for development of minor ports fall under the high erosion coastal zone area. We have already identified the high erosion coastal zones in stretches of Puri, Konark and Gopalpur and submitted the same to the Union ministry of environment and forests,” said Bhagirathi Behera, director (environment), Orissa government.

The Society of Integrated Coastal Management (SICOM) on Wednesday, launched the shoreline study maps of Gujarat and Puducherry.

The SICOM is expected to release the shoreline map of Orissa and Tamil Nadu by January end and maps of all coastal states by the end of 2011.Industry leaders have downplayed the impact of the environment minister's statement while cautioning against development of coastal zones vulnerable to high erosion.

“I don't think the environment minister's statement will have nay serious bearing on coastline development of the state. However, there are certain zones that are very vulnerable to erosion and we have to be very careful in developing such zones. In any case, no coastal developer would risk his investment on such vulnerable zones,” said S K Mohapatra, chief executive officer of Dhamara Ports Company Ltd and past chairman of CII-Orissa.

R K Jena, chairman of CII-Orissa said, “A lot of projects along the Orissa's coast are in the pipeline and the environment minister's statement is hardly going to have any significant impact. But we need to do a detailed study on coastal zones susceptible to erosion.”