A rejoinder to PRI’s comments
Corporate Social Responsibility (CSR), INDUSTRY and INFRASTRUCTURE, IT, Land acquisition, R & R, Steel September 28th. 2007, 7:10amThe Hindu reported today that the chief representative of PRI(Posco Research Institute) has made some adverse comments on the progress of MOUs in Orissa.
Taking excerpts mentioned in the report:
“Chief Representative of PRI Chang-ho Kwag said the social infrastructure of the State was not proper to absorb mega projects. “Attitude and mindset of State Government and people towards projects need to be changed. Education of people to understand the real cost benefit of industrial project was necessary in which the state government has a big role,” Mr. Kwag said.“West Bengal can be a good example. Why is every good project taking shape in West Bengal? I think the State Government played a key role there,” he said.
Despite being a State governed by Left parties, the State adopted itself in post-liberalisation era, the PRI Director said.
All the coastal states of India showed healthy GDP growth while Orissa lagged with 3.5 per cent rate growth compared to West Bengal’s nearly 6 per cent, he said.
“The Government needs to set up service mechanism for expediting mega projects,” Mr. Kwag said. The Posco Research Institute said Chinese government had engaged two to three of its personnel for one big project so that they could take care of different processes and ensure project getting converted into reality.“
The Head of PRI must understand that Orissa is not a communist country like China. Where if requirements are provided by companies, local protests are crushed using an Iron hand and value propositions are ignored completely. Rehabilitation is a complicated process.
It is surprising to note, that , the head of PRI has mentioned that most projects are coming up in West Bengal. Do they actually think, that they would get a captive port in West bengal and also land at such cheap rates which is being provided to them in Orissa.
Also, they might actually mention which big projects are coming to West Bengal. In West Bengal land acquisition is easier since, the writ of the local communist runs in every block. Even then a Nandigram has happenned there.
Perhaps, he should see the amount if strikes that happen in West bengal. A bandh(strike) is a regular feature of life in the state. If this is considered business friendly then we have some new rules for business.
The truth of the matter is that, Orissa has been second fastest in implementation of MOUs in the country.
Let it be noted ,that , it is a combination of land and accesibility to a sea-port which makes Orissa an attractive destination.
Perhaps, the head of PRI is not aware that according to a World Bank report, Orissa is supposed to be the fastest place to start a Business among all states in India.
Perhaps, some of the statements can be reconsidered.
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September 28th, 2007 at 11:36 am
I think it is a way of pressurising Orissa Government and Orissa people. If someone cites the example of Gujarat or Tamilnadu, it may be acceptable. But West Bengal surely does not have a business friendly environment. If this is the attitude of POSCO, then we need to be more careful about the deal of POSCO.
October 1st, 2007 at 6:30 am
Good point bipin Babu,
I do want to add that, POSCO will not be any different from other industries like TATAs and other groups like this.
October 1st, 2007 at 2:23 pm
I do notice that the West Bengal CM is not afraid of once in a while speaking his mind to convince people on controversial issues. One recent example is he talked about his support for nuclear energy. I wish our CM would take similar steps, such as go head on and try to explain people why POSCO is beneficial.
October 4th, 2007 at 2:01 am
I agree.
I would think that we should also,try to review the progress of the big-ticket MOUs. That might provide a clear picture of how things are moving.
October 5th, 2007 at 12:57 am
Where will India get its steel from in the year 2030? Where will we get aluminium from to make fighter planes when China starts invading India in 2035? Maybe the ghosts of Biju Patnaik, Navin Patnaik, etc., etc. will rise from the ashes and save the world.
October 11th, 2007 at 2:38 am
Das Babu,
You have valid questions. I will try to nswer your query objectively.
1. If we have Mineral resources, then, it makes sense to have value addition from it. We are getting two cities from POSCO(1. The Steel Plant 2. The Other , the Port). This will create another centre like Rourkela in the past.
We have at this point 25 small ticket investments, but, their effect on Orissa’s development is negligible.
2. Regarding when ores are finished, the truth is that, Orissa has massive amount of minerals, and, more are being discovered.
In future Orissa can become the centre of all gas related discoveries . Mahanadi and Godavari basin has the best gas reserves in the country.
Therefore, it is important to be positive..
December 18th, 2007 at 11:33 pm
If POSCO and Nandigram are to be understood some issues need to be clarified first: what kind of development is it when it bypasses more than 70% of its people? Can the engine’s of India’s growth be through the 20% middle class and 10% rich and exports? What about developing the domestic market first and making their income sustainable so that they can have purchasing power for buying the manufactured products. In reality the Indian government is hell bent on destroying the very basis on which these people survive- that is agriculture. Agriculture is the cheapest and best form of providing employment and livelihood, however by destroying it through neglect the ruling parties have convinced everyone that agriculture is of no use and industry is the only option. The truth is the only reason industry is being preffered to agriculture is because of the huge sums of kick backs that are available to the politicians and the administration.
Further, the whole issue of forced land acquisition for private industry is anthema to any principles of democratic rights and good governance. The state is using antiquated colonial laws to acquire land for private industry, often killing, intimidating and forcing farmers off their land. After all thousands of miles of roads and railway lines and so many other projects have come up in India without such reistance from the people; the reason people are up in arms now is just because the government is acquiring huge tracts of land on behalf of private players, who will also only use this to gain from speculation. Only very small section of the land will actually be used for industry; (no matter what the law says) Ironiclaly, if our industry majors believe so much in the “free market economy” then why dont they purchase land directly from the landholders, why do they force the state to acquire land on their behalf?
The people’s struggles at Nandigram, Kalinganagar, Raigarh, Dadri and POSCO highlight the democratic resistance of the people against a form of development which is against their interests and they all have seen the fate of those dispossesed from their lands and Orissa has a chequered history of more than 30,000 people who are still waiting to receieve compensation and resettlement for the Damodar and Hirakud projects!!
Democracy means the right of people to choose and live accorinding to their understanding of what constitutes a good life for them and no purpose is achieved by arrogance which claims that politicians and administrators know more than those whose lives are being affected. The people know best if left to themselves.
Before embarking on such ambitious projects like POSCO where millions of rupees will be lost to the ex chequer through SEZ taxation rules and huge tracts will be handed over to foreign companies where no labour, customs and taxation laws will be applicable, our natural resources, forests and precious mineral ores will be ruthlessly exploited by and for the interests of western developed, nations our government should try to even provide the basics such as clean drinking water, education and basic health care!! India is headed towards another round of colonial rule and it is only the resistance of democratic forces which can prevent this onslaught.