POSCO Realities

It's time to face the realities of POSCO

6 years ago, exactly on this day of June 22nd, the Govt. of Odisha signed a Memorandum of Understanding (MoU) with the steel manufacturing giant POSCO for a Rs 51000 crore investment for a steel plant in the district of Jagatsinghpur. This project is still the biggest FDI of India. After a rule under former chief minister Janaki Ballav Pattnaik (of Congress, now rehabilitated as Governor of Assam after retirement) during which the state saw negative growth and became a place most unsuitable for industrialization (even if most of the country’s mineral lies under the soil of Odisha), such projects brought rays of hope for the people of Odisha. The state’s economy was in shambles and projects by companies like POSCO, TATA, Arcellor-Mittal were expected to boost its economy. Unfortunately, not a single of these big projects has moved an inch since the day the MoUs were signed.

Being the biggest FDI of the country, the center was also genuinely interested in having this project. Irrespective of the views of the state congress leaders the PMO pushed for the project. Yet POSCO had to face resistance from the villagers who protest the acquisition of land in the area. It also faced charges of violating forest rights act and after many years, the forest clearance was finally given by minister Jairam Ramesh. While the environmental issues are already settled, the problem of land acquisition has come to the fore. The state govt. after getting the requisite forest clearance moved ahead with the acquisition of the 4004 acres of land required by the South Korean company for the plant. Protests by villagers of one village using women and children as human shields has hit the national and international headlines. Govt. is on the back foot and has decided to stop the acquisition process. After 6 years, it is already too late. People of Odisha who were once ecstatic about the POSCO steel plant are now disgusted the way it is being resisted. It is time for the unawares as well as the anti-POSCO protesters to confront the realities of the POSCO plant and related issues. Being from Odisha, I hope I can present the facts well.

* The POSCO plant was allocated to the 4004 acres of land in Jagatsinghpur because these area had least private land. Of the 4004 acres, almost 3500 acres of land are govt. land. While the real owners of the lands have welcomed the plant and left their lands for the greater good of the state, the villagers encroaching the govt lands by farming betel on it are creating ruckus.

* The allegations of POSCO violating the forest rights act(passed in 2006, after the MoU signed) is baseless. It is alleged that the plant violates the clause 2(o) that declares that all those living on forest land for at least three generations (75 years), as well as forest dwelling scheduled tribes, have rights under the Act to use the land under occupation and/or cultivation. Around 3000 acres of the land marked for the plant are classified as the forest land(even though there is no forest on that land. How come betel is being farmed on that land if there exists a forest there?). But as per documents, the land was classified as forest land in the 1950s, so no chance of people living there for 75 years/3 generations.

* While the world wants to believe that the protests are voluntary ones by the villagers, the reality is different. One Abhay Sahoo, who doesn’t belong to the affected area came from nowhere and started leading this campaign. Why the villagers weren’t given a chance to decide their own fate? Why an outsider leader was needed to instigate the locals of that area?

* Political opportunism is the only adhesive that binds the political parties. This is true for the POSCO project. Have you ever seen Left, Congress and the BJP supporting same cause anywhere else? Well they are on the same page in case of POSCO agitation.

* Of all the villages that will get displaced by the project, every village except 2 support and welcome the investment. Only Dhinkia and Gobindpur are the two villages where the majority are not in favor of POSCO.

* The land activists may shout about their democratic rights. Then why they threw the pro-POSCO villagers out of their villages? Didn’t they have any right?

* The leaders who lead the dissented villagers never gave constructive suggestions to the govt. while discussions. They rejected a unique and the best rehabilitation policy laid by the govt without even giving the suggestions like what more they want. Why I call the rehabilitation and compensation package as the best in the country, you will know that when I mention some of its features in the next realities

*POSCO compensation package: Posco would pay the betel vine owners Rs 11.5 lakh per acre. The labourers working in the betel vines would get 20% of the compensation awarded to the owners.

*POSCO compensation package: POSCO would pay Rs 17 lakh per acre of agricultural land and Rs 2 lakh per acre used for prawn ponds.

* POSCO compensation package: The people who have encroached the govt. land would also get the compensation.

*POSCO compensation package: Labourers working in betel vines will get unemployment allowance of Rs 2,250 a month for a year, in case they don’t get work during the steel plant construction.

* POSCO compensation package: Each of the displaced undivided families would get 10 decimals land on which POSCO would build a three-bedroom house with a cowshed. Each displaced family would also be provided Rs 5,000 as transport cost.

* POSCO compensation package: Adult members of the families would be treated as a SEPARATE family and given 10 decimals of land each.

* POSCO compensation package: A member from each family would get a REGULAR job in the plant. if not, allowance of Rs 2300 per month as unemployment allowance.

* If this compensation package is anti-poor, then perhaps no package can ever satisfy the protesters. May be because the leaders of the protest have their on vested political interest to fuel the dissent against the govt.

* While everyone is keen to comparing the Gobindpur or Dhinkia with Nandigram and Singur, the reality is that the state has not used force yet. The govt. has done commendable job to secure peace in the area by keeping the police and the ruling party cadre in limit.

People should check realities first before jumping to conclusion. Odisha has lost so much in last 50 years even if it has so much natural resources with it. Dear Medha, Gurudas, Agnivesh, D Raja and all outsourced leaders, please don’t dismantle the industrialization process which has been peaceful so far. We are a slow progressing state; don’t make us a ZERO progressing state. And dear protesters at the protest site, please send your children to the schools instead of bringing them to form human rings to confront with the police. Do you also want them to rot in poverty like you?

Will India’s biggest FDI materialize?

POSCO's proposed unit in Orissa is the biggest FDI of India

More than 5 years ago, when the Govt. of Orissa signed the MoU with the South Korean Steel giant POSCO, the people of Orissa were ecstatic and dreamt of a new beginning in the industrial sector of the state. Such a project was unique as around Rs 51,000 crore money was proposed to be invested making it India’s biggest FDI. Around the same time the Naveen Pattnaik govt. signed some 50 odd MoUs and naveen became a messiah for the public in Orissa. Till now his industrial drive is being touted as his and his party BJD’s success story (It’s a different story that most of the big projects have not moved an inch forward since then). The initial euphoria was expected as Orissa had just moved away from Congress’ misrule which wasn’t able to bring any new industry and rather was responsible for shutting down many existing small and middle industries.

Today after 5 years, the POSCO project’s future is marred by petty politics and complex interpretation of the forest laws. Recently the Ministry of Environment and Forests(MoEF) 4-member committee headed by Meena Gupta, former environment secretary, gave 2 contrasting report that pushed the future of the project into darkness. As no large political leader involved with the issue (unlike Vedanta’s Niyamgiri project which has now become Rahul Gandhi’s pet issue), this news wasn’t covered by the national media. This post will try to throw light on the issue and try to interpret the indications to seek the answer to the question in the title.

The 4 member committee (members: Meena Gupta, head of the committee, Urmila Pingle, Devendra Pandey and V. Suresh) empowered by MoEF submitted 2 separate reports on the 18th October. While chair Meena Gupta in her report asked for conditions to be added to the existing clearances but NOT to cancel the clearances, the other 3 members in a separate report suggested that approvals should be canceled because of “flaws in the studies, and shortcomings in the clearances granted”. The 3 members strongly disapprove the idea of POSCO building its own port at the same time states that the govt. of Orissa helped the company by giving illegal clearances. It is to be reminded that this committee was formed by MoEF after it had asked the state govt. to stop all the work on the POSCO site on the Ausgust 5 when the govt. had started surveying the land to acquire it for POSCO.  It was around the same time when MoEF had revoked the clearance of Vedanta for its Niyamgiri plant.

 

Meena Gupta

 

Coming back to the MoEF committee report, as the majority view suggest to revoke POSCO’s clearances the future of the project looks bleak which will be decided on October 25th when the Forest Advisory Committee meets. What makes the issue more complex is the statements coming from different parties to the issue. The 3 members who reported against POSCO’s clearances accused Meena Gupta of giving a pro-POSCO report to make Govt. of Orissa happy as she is an IAS of Orissa cadre. At the same time Meena Gupta met Jairam Ramesh and told him that her report should be considered as she was the head of the panel. The local media reports Jairam to be ‘soft’ towards the project as he had said off the record that POSCO and Vedanta issues are two different cases. So is there any hope left? Or is it the end for POSCO in India? To answer this, we have to analyse different aspects from the past, present and the future.

The case is unique indeed. The Orissa govt. chose the particular place for the plant as most of it were govt.’s land. Still it has to face stiff resistance from the locals who are farming illegally on the govt. land. While the govt. and the company is ready to compensate even the govt. land encroacher, several farmers aren’t ready to leave. Other than that Forest laws violation is another accusation that the POSCO is facing. But the real problem is the indecision at the part of the govt. especially the central govt.

At first, the project’s progress was monitored by the PMO itself even when the state congress leaders were opposed to it. The South Korean President was invited as chief guest for India’s republic day celebrations to assure South Korea that Govt of India will take steps to make sure that POSCO project materializes. But the govt. never set a time frame to achieve goals and it was shocking when all of a sudden in the August 2010, MoEF stalled the project. While Prime Minister Manmohan Singh is to visit Seoul in this November, he may have to answer some tough questions and reminded of his assurance. And Jairam’s off the record statement that POSCO and Vedanta are two different cases is quite significant from this point of view.

The future aspect of this particular investment will also be in front of the govt. If this investment fails, it will surely affect the future investment projects. Orissa is already facing the outcomes of the slow progress of large investment projects. As Arcellor-Mittal, Vedanta projects along with that of POSCO has not progressed for last 4-5 years, no new projects are coming to Orissa. With the news coming that Gujarat govt. is trying to woo Vedanta to shift their project to Gujarat and some other states like Jharkhand, Chattishgarh interested in POSCO’s project, Orissa will never want to loose these investments. The POSCO bosses are also not happy as the values of their shares are decreasing day by day because of the uncertainities over the Orissa project.

The central govt. understand that they have messed up the issue and with PM visiting South Korea, it may not take any negative decision. In the October 25th Forest Advisory Committee meeting they may just take a diplomatic decision that will delay the progress again and the question “Will India’s biggest FDI materialize?” will remain.

An Open Letter To Rahul Gandhi

Dear Rahul Gandhi,

Namastey! I hope you are fine after returning from Orissa. I am sure the Orissa Congress leaders treated you well here. Yes, you guessed it right from the use of the word ‘here’. I am from Orissa – a 20 year old apolitical youth (now you should be interested in this letter). I was keenly tracking your recent Orissa visit and in due process some questions have come up in my mind. I don’t expect you to answer my questions as you are yet to answer when people ask you about your views on several serious issues ranging from price rise to Kashmir, from Naxalism to Commonwealth games mismanagement. Probably last time we had heard from you when Saharukh Khan was on ShivSena’s target. May be that was a serious issue for you as your friend was in trouble.

Ok, leave those topics. My questions will only from your visit to Orissa. Even if you decide not to answer, at least pay some time to think about it. (Your fans reading this open letter will anyway give the answer on behalf of you).  Well, don’t worry! I will not ask you about the suspect Maoist Lado Sikoka garlanding you in that meeting. BJP has already asked that question. Why will I repeat that?

As soon as the N C Saxena committee suggested a ban on Vedanta’s mining in Niyamgiri, Orissa, I got to hear that a ‘special’ visit of yours to Orissa is being planned. The next day, it was declared that you would visit Lanjigarh on the 26^th August. The local congress leadership also reminded us of your speech at Lanjigarh in 2008, during your ‘Discovery of India’ yatra. You had said, “Kalahandi ke tribals ka ek sipahi Nai Delhi mein hai aur uska naam hai Rahul Gandhi”. So what actually you wanted to show us was that you kept your promise and threw Vedanta out of Lanjigarh (Kalahandi). I just want to know how you were sure that Vedanta will be thrown out after just a ‘suggestion’ from a committee. Were you sure that the Union Minister of Forests Mr. Jairam Ramesh would give his decision against the Vedanta? Or had you told (ordered?) Ramesh to ban Vedanta’s mining project? I am not speaking from Vedanta’s side but if it was pre-planned to ban Vedanta’s mining, then what was the point to do such drama? In fact, local media reports suggest that central govt. will give go ahead to Vedanta if it asks for mines at different places. Did you want to take the limelight and appease the tribals to get some more votes in 2014? Did you do that to embarrass the Orissa govt.? Ahh, then you couldn’t change the ‘way politics is done’ as you had promised us (youth). Rather you became a part of it! Would you please clarify?

When you were in Orissa (to appease Lanjigarh tribals), actually most of the population of Orissa was expecting a clarification from you on the Polavaram project. We common people are not experts, but some geologists have expressed apprehension that several villages of Malkangiri on the Andhra-Orissa border will be submerged once the dam is complete. And let me tell you that part of Orissa also is a tribal dominated area. How did you forget the ‘other’ tribals of Malkangiri when you were talking with ‘some’ tribals of Lanjigarh? So you are selective in your love for the tribals? Or is that because your party’s govt. in Andhra is executing this project? Then how are you the ‘Sipahi of tribal’? By the way, do you know just one day after your visit your mom has written a letter to Andhra CM ‘assuring’ him that the Polavaram project will be a national project. You can understand how depressed the tribal of that part of Orissa are! Would you please care to visit them too?

Do the poor people make a vote bank? No, I guess! Otherwise you must have talked about the POSCO project in Jagatsinghpur, Orissa. If struggle of people against Vedanta attracted your divine attention, why not the struggle of the poor people against POSCO have that privilege? 2 days before Saxena committee’s ‘suggestion’ to ban Vedanta mining, another committee of Ministry of Forest had stalled the acquisition process for the POSCO. But you didn’t utter a word about that project. Is it due to the difference between the poor and tribals or the difference between POSCO and Vedanta or Both? The reason I am asking you this question is that for many days PMO was directly focusing to make the POSCO project successful. Why suddenly the government has turned against the project? I smell conspiracy. Can you throw some light?

Ok, forget POSCO. One thing is sure that the company on your target was Vedanta. But you didn’t talk about Vedanta University project. Come on, you were here for around 1.5 hours, what were you talking then? For your information, Vedanta University will be established on 6000acres of land on Puri-Konark marine drive. Have you ever heard of a university present on 6000acres of land? We suspect this project to be a trap by Vedanta to capture the valuable lands that are present on the Puri-Konark marine drive. You should have talked something about that. You can tell (and your fans too) that you are not expected to know about all the projects in Orissa. But when you came here didn’t you do some home work? Google Vedanta and Orissa, you could have found all information about Vedanta’s projects here and the controversies related to them. You being branded as future prime minister (even no. of fans on your facebook page is a news in the media) we had expected you to talk about whole Orissa and be the sipahi of the Orissa, not a select group of people.

These were some of my questions, think about these. Think if you are really changing the way politics is done. Don’t disappoint us, sir. You have already done that several times.

Wishing you a bright future (your future is anyway bright thanks to the family you are born in)

Yours Faithfully,

Dibyasundar

P.S. I forgot to make a suggestion. Please shave, that uncharacteristic beard doesn’t look good. News channels too are hesitating to show this recent ‘not so handsome’ avatar of yours. Please don’t give chance to India TV to make 30 minutes special program on your beard. 😛

[Cartoon: courtesy Prasad Radhakrishnan/ Mail Today]

Industry, Land Owner And Environment: Can There Ever Be A Balance?

[This post has been selected for BlogAdda’s ‘Spicy Saturday Picks’]

There is probably no doubt that only industrialization can bring fast progress and advancement to a country. Though there are many believers of “Industrialization is against human values” still exist in this society, it is time that the Indian government and its various structures take a proactive stand supporting industrialization (off course  with considering damages and loss to citizens). For a fast growing economy like that of India, fast industrialization is a must. But the acts of Union Forest Minister Mr. Jairam Ramesh create doubts in the minds both of the citizens and that of the investors; the recent act being the ban on mining in Niyamgiri, Orissa for Vedanta’s $7 billion project on the grounds of violation of environmental laws. While every state of India face problems during land acquisition for industries, such accusations of violation are disturbing. Why is it a problem to set up an industry in India? It’s time we discuss them.

Considering Orissa’s case, we find some tall promises for future when we look at the long list of companies that have signed MoUs with the state government. Total amount of proposed investment is Rs 600,000. While Gujarat has become the most investor friendly state of India, all other state has failed to create an environment conducive for industries. What do we lack? I think it’s the balance between the industries (investors), people who will get affected (land owners) and the environmental laws. But the question is if there can be a ground for congruence between these factors!

The popular perception about investors is that they don’t face any problem while setting up an industry as they have lots of money and that’s why they should compensate the affected people as per market price. Let’s get some clearer idea about the constraints that the Industries face. Considering the high value of lands these days, is it possible for a company to buy thousands of acres of land at the market price? In fact, when an industry is declared to be established in an area, the market price too increases. Then add the secret amount that business enterprises pay to the local decision makers to get all clearances and facilities in a smooth way and you will see how difficult it is for a company to set up a plant. As they want to do business, we can’t expect them to run non-profit organizations here. Shouldn’t the govt. think rationally and help an ‘outsider’ company to start its business at a place which is suitable for it?

Now let’s discuss the factor of environment and plight of land owners. First the case of land acquisition. This problem is not that big as it is perceived. Actually it grows due to initial inaction of the govt. With absolutely magnificent rehabilitation programmes launched by the govt. and the private companies, there shouldn’t have been any problem for land owners to leave their land except for some genuine causes like the lands being highly fertile. The govt. /companies are ready to compensate people even for the govt. land they have encroached on. But thanks to opportunistic politics and even Maoist fomentation trigger violent war like situations. What helps these leaders is the lack of awareness among the locals as well as the poor records of govt.s in rehabilitation programmes. In Orissa, only around 15,000 acres of land of the estimated 45,607 acres of land required for investments have been acquired. In case of POSCO, govt. faced problems while acquiring its own land (3500 acres out of total 4004 acres land for POSCO) which have been encroached since ages.

Environment is a more genuine reason to oppose installing a plant. At a time when global warming is the biggest problem in front of the human civilization, we can’t afford to destroy natural flora and fauna. There should be absolutely zero tolerance towards violation of environmental laws.  Having said that, what needs to be ensured is that the damage is estimated properly and the true estimation is publicized. It can be done by none other than the govt. itself.

The balance between the 3 factors of industrialization can be established by the govt. only. The govt. here means both the central as well as the state govt. When it comes to industrial enterprises,they need to think alike irrespective of which party is in power at the center or the state. The laws should be clearly laid and interpreted. Today parties interpret the laws according to their advantage. This creates doubt. Due to this reason the companies act surreptitiously and country looses the revenues it deserves from the business.  We want leaders to speak in one voice – no matter if that voice is positive or negative. The leadership has to be stubborn when it comes to upholding laws of the land. Government needs to take the utmost care while deciding the area where the plant is to be set up. “No fertile land and least private land” should be provided to the investors. If all parties can stand united for or against a plant, there can be no one/party politicizing the land acquisition issue. As written before, zero tolerance towards environmental damage should be the approach making sure that the damages are estimated fairly. As it is highly improbable to expect politicians to talk in one voice and not politicizing the issue, a centrally empowered committee can be formed to check all the heavy industry proposals. The committee should have representation from all political parties, selected environmentalists and representatives of the people to be affected in a project. In a country of committees, we can adjust one more committee for sure.

The key to the balance lies with the political leadership of the country. If they want to use it, we can see a peaceful and industrialized India. And if they don’t want to use the key, it is our duty to force them to. After all, the supreme power in this country lies with us, the people of India. Hope we haven’t forget this fact.

Is this the beginning of the end of Naveen Patnaik?

[As Orissa is not on the radar of the national media, here’s a post on the current political environment of Orissa.]

On the August 17th the govt. of Orissa had to face embarrassing situation, when a central govt. committee headed by N C Saxena suggested to stall the Vedanta’s mining project in Niyamgri. It said, “Vedanta consistently violated several laws in bauxite mining at Niyamgiri, encroached upon government land, got clearances on the basis of false information and illegally built its aluminium refinery at Lanjigarh, Orissa. As the company engaged in these violations, the Orissa government colluded with it and the Centre turned a blind eye.”

This was another allegation against the Orissa govt. that it helped a private business company against existing laws. Days ago another committee had ordered to stop the land acquisition for the POSCO project due to violation of forest act. So the clean govt. with a clean chief minister suddenly seems not so clean.

The Naveen Patnaik regime came under the scanner for the 1st time this year in several issues. Naveen, whose USP is his clean image, using this image was able to form govt. for 3rd straight time in Orissa. 1st of all came the Rs 14 thousand crore mining scam. BJP used all the information it had during the days when it was in the govt. with the ruling BJD to expose the govt. Though BJP couldn’t make it a big issue owing to lack of quality state leaders, it was successful to create doubts in the minds of the common men. People feeling happy for Orissa govt.’s tryst with business biggies, suddenly started doubting it. After all, the govt. had failed to execute any of the MoUs it signed with the big companies. While the MoU with POSCO expired this year, there is still doubt over the Arcellor-Mittal steel plant. While the BJP with the help of Congress (strange but these party are on the same side in Orissa) made the first dent in the ruling camp, govt.’s own inaction in the farmer suicide case also created a negative atmosphere for the govt.

Though the govt. tactfully managed the issue by not letting the issues grow, another big scam surfaced -the coal scam. Though it wasn’t as big as the mining scam but it was important as names of 2 ministers came into picture. Naveen’s strategy for last 10 year has been to sack or force to resign ministers or MLAs even before the issues grow big. That has created an image of Naveen that was as clean as his white Kurta. In his 10 years of chief minister-ship he has sacked (or forced to resign) 21 ministers. Some of them were also BJD founding members. But Naveen powered by his political adviser Rajya Sabha MP Pyari Mahapatra’s advises had not shown mercy to any one. So it was expected that he will sack the 2 ministers alleged to be involved in the coal scam even before congress will be able to make it an issue. But for some unknown reasons Naveen didn’t do that and the Congress and the BJP made it a big issue by boycotting the full assembly session in the demand resignation of the two ministers. Is the party slipping from the holds of Naveen Patnaik? Is that the reason why he couldn’t able to ‘act’ this time? These are some questions that are being discussed in political circle here. And even before the govt. survived from these attacks, the center’s decision on POSCO and Vedanta pushed into more trouble.

Though the govt. is not under any sudden danger as it has quite comfortable numbers with it in the assembly and the united opposition (Congress+BJP) makes just one-third of the 147 member assembly, the govt. will be under scrutiny of common people. The coming days will be a test for the govt. to see how they will manage the conditions. It has already started to project the current denials of the center as political propaganda of the congress. With extremely weak opposition, both in numbers and quality of leadership, in place, Naveen may dodge the questions posed at him successfully. But 4 years are a long time in politics. Who knows during these 4 years something may reverse the tide against the govt. Even one Singur like situation can uproot a mighty govt. May be we are witnessing the beginning of the end of Naveen Patnaik.