Orissa CM Naveen Patnaik’s dream to turn Orissa into a safe destination for industrialists to invest in the steel, mines and power sectors seems to be running into rough weather.
The state govt is facing opposition from many quarters
BHUBANESWAR: Orissa chief minister Naveen Patnaik’s dream to turn Orissa into a safe destination for industrialists to invest in the steel, mines, aluminum and power sectors seems to be running into rough weather.
All major projects, including Posco’s 12-million-tonne greenfield project and Tata’s proposed six-million tonne project, that have come to the state have been delayed for months. No progress has yet been made on the proposed Posco project. The detailed project report (DPR) of the Arcelor-Mittal’s proposed 12 million-tonne plant at Patna tehsil in Konjhar has not yet been completed.
Though a MoU with Posco was signed 28 months back on June 22, 2005, even the land acquisition process has not been completed. Mining lease has not yet been issued.
The BJP, which is a coalition partner, is critical of the government’s industrialisation process. Its national vice-president Jual Oram openly criticised the government’s move to hand over the Khandadhar mines to Posco. After BJP president Rajnath Singh intervened, he has maintained a stoic silence. Both the Posco and Tata projects have been delayed as the anti-industrialist lobby stepped up its pressure.
“We will not go in a haste,” opined steel and mines minister Padmanabha Behera, adding that Orissa have already received an assured investment proposal of Rs 1,95,540 crore in steel and mines sector. Besides this, about 50,000 crores of investment will be made in alumina and aluminium sector.
Both Behera and industry minister Biswa Bhusana Harichandan admitted that the progress of industrialisation have been delayed due to Kalinga Nagar shoot out, in which 13 tribals were killed on January 2, 2006.
The violence took place when Tata Company officials tried to acquire lands for its project and started constructing the boundary wall. “The violence has delayed Posco’s project for more than one year,” said Shasanka Patnaik, spokesperson of Posco-India.
Posco’s proposed project has now been the target of the anti-industrialist lobby. CPI and CPI(M) are openly opposing the project. Congress, which supports the Centre’s mining policy, has not adopted a similar posture in the state. As per the MoU, Posco’s plant will reach full capacity of 12 million tonne by 2016. The first stage of production, which is slated to start from 2010, seems unrealistic given the present turmoil.
The proposed plant area spreads around three panchayats of Dhinkia, Nuagaon and Gadakujang. The rich and fertile lands of the region give handsome yields to the farmers from betel vine, cashew nut and fishing. “We will oppose the project tooth and nail,” said Posco Pratirodh Sangram Samiti (PPSS) president Abhay Sahu.
PSS activists recently abducted four Posco officials including three South Korean nationals. They latter released them. Anti-project activists have started running a parallel administration in these areas where Posco is going to set up its plant. Taking this seriously, Posco officials threatened to quit the project. But the problem was resolved after Posco’s CEO Ku-Taek Lee met Naveen Patnaik in New Delhi on October 19, where he was assures of all support.
When the government awards the Khandadhar mines to Posco, there could be another problem. Khandadhar waterfall is the biggest waterfall in the state. Local people fear if there is mining, the waterfall will vanish. Local MLA Laxman Munda has already formed the Khandadhar Surakshya Samiti to start an agitation against it.
Another controversy related to the Posco project is the government’s decision to provide iron ore at a cheaper price. While the market price per tonne of iron ore ranges between Rs 2600-Rs3200, the government has made a commitment to provide iron ore at Rs 26 per tonne. “It will turn to be the major issue in future,” warned Janardan Pati, secretary, CPI(M), Orissa.
Head of the Economics department, Utkal University, Padmaja Mishra said, “Both government as well the people will be immensely benefited from the Posco project.”
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