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Chhattisgarh farmers to fight miners the corporate way

Form producer company, ready to foray into thermal and solar power production

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In retaliation to lathi-charge, false and fabricated cases for opposing Jindal Steel and Power Limited (JSPL) coal mining in the area, farmers from the Gare village in Raigarh district of Chhattisgarh have set up a producer company to challenge the corporate now. The company -- Gare Taap Upakrama Producer Company Limited (GTUPCL) -– is planning to set up a thermal power plant and a range of other economic activities focusing on alternative energy in the coming years.

Started with an initial capital of Rs 1 lakh and 30 farmers in 2013-14, it has expanded its base to 10 nearby villages with over 300 farmers as its members. These include farmers from Korkil, Khamaria, Sarasmal, Koshampali, Jharna, Tamnar and other places in Raigarh district. The company has a chairman and nine directors. An audit has also been conducted for the last fiscal.

Farmers who have joined the company have signed a memorandum of understanding (MoU) allowing GTUPCL to take collective decisions on their lands which consolidated would be over 400 hectares, a huge asset base for the company to negotiate with others.

Talking to dna, company chairman Hairhar Patel said, "We have realised from our struggle of last seven years that no government is going to give up the idea of coal mining. If coal mining is so crucial for the economy at the cost of displacement and livelihood, which the government does not recognise, we ourselves could own the operations. After all, the industrialists personally do not have the knowledge of these technologies. So we have decided to become a player now and contribute to 'national development' while earning profits like corporate world."

The company has already sought the guidance and mentoring with a couple of experts on its panel like geologists, financial experts and environmental planners. At present, they are working out the modalities to collaborate with other companies and institutions which they don't want to reveal.

On the question of finances, Patel accepts it's not going to be easy. "We have different options like signing MoU with other companies, we can mortgage the consolidated land that we have acquired and get loan; farmers' who are going to lose their land for mining are also willing to invest the compensation amount," says Patel, adding that they would like to try their luck for the coal block auction next year and they are in process of arranging around Rs 25 lakh as bidding fee.

While it is not certain if GTUPCL will be eligible for the first phase of coal block allocation to be held in February-March next year as it is only for the companies and corporates who are end users like thermal power plants and steel industry, there could be a possibility that GTUPCL either takes a sublet work of mining in the area or finds a working partner. Patel says, "It's too soon to comment on this."

Energy expert from Administrative Staff College of India (ASCI), Hyderabad, Dipesh Dipu says, Gaare Producer Company is a very noble idea and a good model to think about and be promoted by the government. Since independence, such kind of models were always thought about but were never worked upon." It will take minimum three years for the company to set up its thermal plant and it would be interesting to see how it grows.

Gaare coal block is one of the biggest coal blocks in India with a capacity of producing around 1000 mega watts of power. The coal block was earlier with JSPL but they lost it with the recent Supreme Court ruling cancelling allocation of 218 coal blocks allotted between 1993 and 2011. Popularly known as Gare IV/6 project, it includes coal mining and a pithead coal washery spreading over 381.42 hectares. The open cast and underground coal mining project is expected to give four million tonnes of coal per annum and would wipe out Gare village completely.

Gare and its nearby villages have been struggling against JSPL since 2008. The first public hearing for the project was held in 2008 and despite rejection by the villagers JSPL got environment clearance in 2009. But in 2012, National Green Tribunal set aside the environmental clearance and directed the environment ministry to hold another public hearing as the earlier one was termed "farce". The green tribunal also said that JSPL had submitted false 'no objection certificates' from the affected gram panchayats.
 

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