State chief minister, Manohar Joshi, told The Financial Express on Saturday that he would soon convene a meeting to discuss the future course of action. He however, declined to comment further. Observers said that the ruling will have an adverse impact on investment climate especially when the state has been losing its pre-eminent position on the industrial investment front. Neighbouring Gujarat and Andhra Pradesh will now lose no opportunity to snatch the project.

The state government and Maharashtra Maritime Board have argued in the past that the change of site from Alewadi to Vadhavan was not done with a view to saving cost. Theproject cost of phase 1 at Alewadi was estimated at around Rs 531.93 crore whereas at Vadhavan, the cost committed by P&O Ports for the first stage was Rs 1,800 crore. The setting up of the proposed port at Vadhavan was a decision taken after detailed consideration and was not illegal.

The state government has made it clear that fishing activities in the area would not get disturbed as the proposed site was free from any such activity. The government has said that the allegations that Vadhavan port development would be a compromise to national security was far-fetched. It has been also stated that the port would lead to a large number of foreign "bottoms" leading to espionage activities. However, the government said that around 80 per cent of the cargo coming to Indian ports was brought by foreign "bottoms."

The port will not disturb the Warli tribal population which has gone upto 25.36 per cent in 1991 and is basically a forest-loving community. The site was not in the forest area and would not havedisturbed the Warlis.

The information collected from the Thane district collectorate shows that of the 923 hectares of government land available in Vadhavan, Wadapokharan, Wasgaon, Khandegaon, Asangaon and Vangaon, about 472 hectares was available while the balance was under encroachment. The available area would be enough to provide road and rail access required for the port. However, it at all, any land was needed to be acquired, the same would only be a narrow strip and would not render anyone landless.