___________

Following is from http://the-diplomat.com/indian-decade/2010/08/29/orissa’s-pyrrhic-victory/.

… Some commentators in the Indian press with a strong anti-corporate orientation, meanwhile, are also gleeful that the project has come to a halt.

Ostensibly, this delight stems from having stopped a greedy multinational corporation from ruthlessly exploiting the natural resources of a remote part of the country and the traditional homelands of some of India’s adivasi (original), tribal population.

Yet despite the delight of these disparate groups with the decision, a more sober and dispassionate analysis suggests that the ultimate losers may well be the hapless tribal population who are the inhabitants of this region.

Generations of governments, despite loud promises, have done woefully little to improve their lot. The region lacks adequate roads, has few public clinics, limited educational facilities and an appalling lack of employment opportunities. Consequently, the locals remain mired in harsh and abject poverty.

The mining investment might not have been a panacea for their many woes. However, it did offer the promise of new schools, better roads, the opening of hospitals and above all the prospects of better-paid work. With the seemingly sagacious decision, none of those possibilities will materialize despite the rather facile promise from a popular Congress member of parliament, Rahul Gandhi, that he would act as the ‘sipahi’ (guard) of their interests in New Delhi.

What is being portrayed as a great victory of environmentalism is sadly little more than a crass effort to win the votes of the tribal population in a desperately underdeveloped state. The Indian state that has long failed to protect and improve the plight of the country’s tribal population needs to do far better than what transpired this week. More to the point, romantic environmentalists and their cheerleaders in the press should think about how they are becoming unwittingly complicit in the Congress’ Party’s feckless quest for votes.

His short bio from the same page:

Ganguly is the Rabindranath Tagore Chair in Indian Cultures and Civilizations and a Professor of Political Science at Indiana University, Bloomington. Ganguly is the author, co-author, editor or co-editor of twenty books on South Asia and serves on the editorial boards of Asian Affairs, Asian Survey and Current History among others.

Following is from his article in http://www.indianexpress.com/news/orissas-unobtainium/673845/0. 

…Niyamgiri, or Niyamgiri hill range—more than 100 hills; 250 square km approximate area—justifies the use of a few cliches. Lush. Verdant. Breathtakingly beautiful in clear, early morning light. The abundance of flora is easily evident (fauna, of course, is not easily spotted, but there are indisputable authoritative declarations on its abundance). Dense clusters of fruit-bearing trees on the slopes can pleasingly unnerve a typical city type. Niyamgiri mangoes are going for Rs 5 a kg or even less at small local markets. Medicinal plants that grow on the hill slopes, say locals, can cure severe wounds. A long trip to the indifferent care of the public heath centre is not required. So, yes, you can think ‘unspoilt’. Many members of the local tribal population—Dongria Kondh, who live on the upper slopes of Niyamgiri and the Kutia Khond, who live near the foothills—were bussed in for Rahul Gandhi’s rally on Thursday, and many of them were clearly happy that mining in Niyamgiri is now stalled.  …

There are plot twists. Seven twists, in fact.

1. A question on local tribal custom.

2. The nuanced answer to the question, what do tribal groups want?

3. How the private investor in Niyamgiri is a bad advertisement for private investment.

4. Where’s the ruling party in Niyamgiri politics?

5. Can we assume a tribal arcadia?

6. Could Niyamgiri have become a laboratory of intelligent mining?

7. Can Orissa afford the Niyamgiri decision?

First twist: That the tribes are protected groups, under Schedule V of the Constitution, that wildlife protection rules apply to much of the area, that the ecosystem is something special are all undisputed facts. That tribal groups have always associated their deity with the hilltop is also supposed to be undisputed. But if you ask around persistently, you don’t get a clear answer. Some locals, otherwise unimpressed with Vedanta’s development efforts, say the hilltop becoming ‘sacred’ is a recent change. Many others dispute this. And this lack of local consensus on what should be widely known local tribal tradition is important because bauxite in Niyamgiri resides on the hilltop—that’s where the mining was to happen before the Central environment ministry denied Orissa Mining Corporation a clearance. This part of the story is more complicated than the usual anti-mining narrative suggests.

Second twist: What are the tribal groups opposing? They are opposing mining on the hilltop. But are they opposing the building of social and physical infrastructure in an area that’s staggeringly underdeveloped even by Indian standards? The answer’s no, and that might seem obvious. But its implications are not obvious. No one denies that successive state governments, Congress or BJD, have been worse than negligent in terms of building social/physical infrastructure. Niyamgiri is in Kalahandi, which is part of the infamous KBK (Koraput-Bolangir-Kalahandi) group of districts: extreme underdevelopment is the KBK signature. KBK districts account for 72 per cent of Orissa’s below the poverty line population. Of the 82 very backward blocks in Orissa, 53 are in KBK. KBK literacy rate is an abysmal 43.3 per cent, while Orissa’s state-wise average is 63.08 per cent. These are all figures (source: 2002 Orissa BPL Census) that tell a dreadfully grim story. And everyone in the Niyamgiri battle, whichever side they are on, agrees.

Siddharth Nayak, leader of Green Kalahandi, a local activist group that counts among its supporters Vandana Shiva, Medha Patkar and Arundhati Roy, said lack of minimum and halfway reasonable quality infrastructure is a big problem. He also said Vedanta Aluminum Ltd (VAL) hasn’t developed as much infrastructure as promised. This is a complaint made by many locals, tribal or otherwise. But if there’s no Vedanta, or no mining, no trigger effect from private investment, who will develop infrastructure, build schools, hospitals, roads? To say that the state administration should do it seems a bit of a cruel joke given decades of history. And especially because local infrastructure is linked to local economic vitality.

There’s no convenient railhead for Kalahandi, a brutal reminder of the district’s lack of minimum economic heft. Apart from agriculture in tiny holdings and forest produce, the latter, consumed and sold locally, and therefore offering no multiplier effects, Kalahandi has little to offer, except a king’s ransom in minerals. Eco-tourism on hills like Niyamgiri is the local activists’ favourite solution to act as a development trigger. But will eco-tourism concentrating on the lush hill ranges bring in the kind of investment that large-scale industrial activity can? And minus the large-scale investment, can enough jobs and enough infrastructure be created? Locals loudly complain that Vedanta doesn’t employ enough of them, that its school—DAV Vedanta School, an impressively well-appointed facility—doesn’t enroll enough tribal/non-tribal children. Vedanta officials deny this. But the fact of these complaints says something: that there was and is a strong expectation, from tribal and non-tribal locals, that big private investment can have beneficial effects. If we assume Vedanta’s corporate social responsibility hasn’t been up to the mark, then the question, from locals’ point of view, is one of more locally engaged private investors, not solely of the absolute villainy of private investors. But the villainy is what the simple narrative of Niyamgiri highlights.

The more nuanced telling of this story comes from the likes of Raju Sahu who came from Bihar to Kalahandi 10 years ago and runs four tea/food stalls on the state highway that links Lanjigarh—where Niyamgiri and the Vedanta factory are situated—to Bhawanipatna, the district HQ. Sahu says his business has more than trebled since Vedanta started operating from here about four years ago. But he complains: what will happen if operations shut down, and why isn’t the state highway in a better condition; his business would be even better then. All along the road and right up to the site of Rahul Gandhi’s rally, tiny businesses run by locals talk of a quantum jump in sales and brood about it all ending. They, too, are locals, and the Niyamgiri story and the Kalahandi story can’t be delinked from what they represent: the possibility of local economy regeneration.

Third twist: Vedanta hasn’t made it easy for themselves or for the cause of private investment. This is apparent even if one sets aside questions about how Vedanta set up its bauxite refinery, how it increased the capacity and the sources of its current bauxite.

Vedanta officials offer you stacks of folders on CSR activities. But local complaints on Vedanta’s less-than-stellar efforts are universal. Lanjigarh or the wider area surrounding it doesn’t even look like a company town, as habitations surrounding big industrial projects often do. The bauxite to aluminum business gives very high returns. Those kind of margins sharpen the question of effective spending for local development.

Also, the company faces several allegations of what activists call its “reliance” on strong-arm methods. A recent case, much mentioned by activists and Congress leaders, is that of the police picking up Lado Sikaka, a Dongria Kondh, and later releasing him. Sikaka says he was brutally roughed up and was almost “kidnapped” because, as he alleges, he’s a prominent anti-mine activist. The local police say picking him up was an error. Vedanta says it doesn’t support any strong-arm methods. But perceptionally, the company seems to have lost this battle.

The state highway mentioned earlier is a good example of bad optics. Vedanta’s 16 tonne carriers, which weigh 33 tonnes when packed with aluminum oxide produced in the plant, trundle down this road every day, 30 trips a day on average. The road shows the toll of this traffic. Local administration officials admit the state highway, never top quality in the first place, is in increasing state of disrepair. They talk about charging more toll from the carriers and rebuilding the road. But, strangely, Vedanta hasn’t helped in making this road better. The company’s response to this highlights the local administration’s responsibility, while adding that it has built roads elsewhere. But this is literally the road to the project. It was entirely appropriate therefore to see, on this road, a shabbily painted Vedanta signboard, hanging askew, with a Rahul Gandhi poster pasted smack in the middle of the board. That pretty much tells you the story of Vedanta’s big PR problem in Lanjigarh.

Another aspect of the same problem is how Niyamgiri was planned to be mined. The Orissa Mining Corporation and Sterlite (Vedanta’s sister concern) formed a joint venture, the Southwest Orissa Bauxite Mining. Sterlite has 74 per cent shareholding. This JV was supposed to act for OMC in choosing and monitoring mining on the Niyamgiri hilltop. But given that the controversy on Niyamgiri mining was brewing for two years, was this arrangement—essentially Sterlite in charge of ensuring good mining practices for bauxite that’s needed by its sister concern Vedanta —the smartest? Vedanta officials say Sterlite’s experience makes it ideal for the purpose. But they don’t have a good answer to the question whether this is credible in a charged atmosphere. Knowledgeable local activists keep making this point, with some justice.

Fourth twist: The absence of enough competition in local politics. The Congress is front and square in the Niyamgiri agitation, delighted now by its ‘victory’. But where is the BJD, Orissa’s ruling party? The line between activists and the Congress is muddled enough for the local Congress MP, Bhakt Charan Das, to have been a past head of Green Kalahandi. But the BJD is so politically ineffective here that bandh calls on Wednesday and Thursday were comprehensively ignored. The BJD’s local weakness may seem surprising for a party that has won three state elections, and whose chief minister, Navin Patnaik, has made a determined effort to appear tribal-friendly. The explanation lies in the vagaries of alliance politics. When the BJD and the BJP became allies, Kalahandi was given to the BJP to build a base. The alliance broke up on the eve of the 2009 assembly elections. So, the BJD essentially had a late start in Kalahandi. That political weakness has resulted in giving the local Congress, which was always strong in Kalahandi, a headstart in political mobilisation on Niyamgiri. Had the BJD been stronger, had it been in a position to work among local tribal groups, the contest would have been more even. Local BJD officials admit this privately.

The Niyamgiri story is not just about activists and tribal groups, it’s also about the Congress getting an unusually clear political field. There are no credible local politicians to speak for the mining project. The sharp irony here is that Patnaik is also the forest minister, who has publicly led the campaign for tribal land rights, but the Niyamgiri mining proposal has been deemed dramatically violative of forest rights. There’s no local BJD counter-point to this.

Fifth twist: Tribal arcadia? Yes, Niyamgiri provides plenty of natural resources. Yes, the hill inhabitants don’t get affected by the droughts that are so common to Kalahandi. Yes, rank starvation is not a feature in Niyamgiri. But the tribal groups still operate in what is a subsistence economy, and they don’t have access to basic facilities in education or health. Tribal groups seems more aware of this than those romanticising the Niyamgiri way of life. Which is why local tribals complain about not getting jobs or education for their children. Which is also why Sitaram Raju, an 18-year-old security guard at the under-construction Vedanta co-funded mid-day meal cooking centre in Lanjigarh, has these stories about several inquiries from local tribal people on when the centre will start operating?

Our children will get eggs and good rice, local tribal people said when asked about the mid-day meal centre. There’s desperation for wanting something more than what they have in that wish. Raju, from Sambalpur in Orissa, earns Rs 4,200 a month. That’s a handsome salary in comparison to local average incomes. And Raju got the job because private security agencies have come in numbers since Vedanta started building sites. A local young tribal—he said he’s “eight class pass”—when asked whether he would like a job that pays what Raju gets, looked at his interlocutor as if the latter was an idiot. Of course, he said. But there are no jobs.

The hazards of romanticising tribal ways of life are colourfully exemplified by Kalahandi’s self-proclaimed “most important communist”. …

Sixth twist: Could Niyamgiri have become an ideal laboratory for good mining? Some Niyamgiri stats bear mention. There are around 8,500 tribal people in the 250 sq. km. hill area. That low population density makes industrial activity easier to handle in terms of fallout. The proposed mining area was four square km: a very small part of the hills. There’s seemingly irreconcilable debate about whether the bauxite-rich hilltop is green-friendly or not. The pro-mining view says trees don’t grow on bauxite-rich hilltops because the mineral doesn’t retain water. Post-mining, when the bauxite reserve is exhausted, the hilltop can, this view says, be made green-friendly. The example given is Nalco’s greening of the hilltop in the Koraput mine; Koraput is a neighbouring district. The anti-mining view says bauxite is porous and it therefore allows water to filter down and that keeps the hills lush. Establishing the real position objectively seems a lost cause in Niyamgiri. The talk is only about Vedanta’s violations and keeping mining away forever. Vedanta may well have violated legal norms, as the environment ministry says. And definitely, the Vedanta-OMC arrangement on mining Niyamgiri, as explained earlier, doesn’t pass muster in terms of a conflict of interest test. But sustained talk of huge ecological devastation, as the Saxena report for example talks about, has killed intelligent discussion on whether Niyamgiri could have been intelligently mined, under proper supervision. Also, bauxite mining, because the hilltop deposits are shallow, rarely needs blasting, the most disruptive of mining activities.

There’s something odd about the Central approach to ecological impact of the proposed Niyamgiri mining. Niyamgiri had received environmental clearance in October 2007. This okay comes after impact assessment studies under the Environment Protection Act. The Saxena report, which was submitted with a speed rare in government—formed in late June this year, the report was submitted on August 16—spends pages on ecological impact. But what does this mean? That the Centre was unaware since 2007, when the EPA clearance was given, that Niyamgiri mining would be environmentally harmful, and that the dangers were discovered only after a two-month study by the Saxena committee?

The seventh and the biggest twist: Can bauxite be mined in Kalahandhi, which has a huge reserve of the mineral? The Central environment ministry says the denial of mining rights is based on rules violation, in particular violation of forest rights under Forest Rights Act. This seems to imply that had Vedanta played by the book as per the ministry’s assessment, clearance would have come. But the Saxena report also puts emphasis on tribal groups’ livelihood traditions and on potential ecological damages. On the ground in Kalahandhi, it’s these two that are being highlighted. Local Congress leaders and activists talk of attempts at stealing away tribal land. If the Centre reckons that subsequent applications for mining hilltop bauxite can be measured only against legal benchmarks, it is probably making a mistake.

Kalahandi is a scheduled area, with heavy tribal presence. Tribal habitations are typically in the area’s hills. The hilltops have bauxite. The ‘victory’ in Niyamgiri has fired up activists and the Congress. Not all tribes who live in other bauxite-rich hills have the heavily protected legal status enjoyed by the Kondhs of Niyamgiri. But, as Nayak said, every mining application will now be met with movements about tribal rights. He reckons Niyamgiri has created a precedent that’s too strong to be ignored. This is good from the activists’ point of view, or for Orissa Congress’s political calculations, but it’s hardly good news for Kalahandi and Orissa.

This is the real big potential fallout of Niyamgiri: it can create more Niyamgiris. 

Following are some of my comments: 

•  Earlier, we also made the point regarding how sacred the hill-top was. In India, both tribals as well as Hindus have many things that they pray. Often many people make temples to usurp government land.  So the lack of consensus regarding the hilltop being sacred and even people who are unimpressed with Vedanta suggesting that the "hilltop being sacred" is a recent change points finger at the activists being behind hyping up the sacred aspect of the hill top.
• On Vedanta not having developed infrastructure: The various reports say that with importing bauxite from outside the company was not making profit, so based on short-term economics it did not spend enough in developing infrastructure. But that was short-sighted action from the company.
• The author makes a nice point that the local and tribals do want jobs, schools etc.  and  were not opposed to development per se.
• Vedanta’s trucks are directly responsible for the deterioration of those roads. They should have spent money on those roads and made them better.
• BJD has a unique opportunity now to counter congress and shore up its base. It should immediately announce and start a state university in Kalahandi; it should take over the half-constructed medical college and make it a government medical college; and it should augment the agricultural college. Being in power in the state, it can do that. It can then go to the people and say: "See Congress is against development. But we are not going to let their anti-development stance hurt the people of Kalahandi. We will do our best to bring development to Kalhandi." (Hopefully Congress will then counter this with some kind of a central institution there.)

My final thought is why did not Saubhik Chakrabarti write such an article before. In the past the only views on Lanjigarh mining that would come out is that of the activists and the press releases by Vedanta. Both were one-sided. So the Indian media is partly responsible for the negative effects of Ramesh’s activism. If only they had given nuanced views like the above before Ramesh made the decision then Ramesh may have made a more nuanced decision.

1. MP of Kalahandi, Bhakta Das, who in recent years has been vociferous against mining by Vedanta once was desperate to have an alumina plant in Lanjigarh. Following is from a report in Hindu.

Today, he is known as a champion of tribal rights and a leader in the fight against Vedanta’s proposal to mine bauxite in Niyamgiri. But 14 years ago, Bhakta Charan Das, Congress MP from Kalahandi sang a different tune. “The Government of India and the Orissa government should take keen interest to set up at least a large alumina plant because we have got a heavy deposit of bauxite in Niyamgiri and Sijimalli of the Kalahandi district,” he had said during a November 1996 debate in the Lok Sabha on the drought situation in Orissa. “If there is an alumina plant, then a minimum of 40,000 people can sustain out of the different kinds of earnings from that.”

When asked about his statements on Thursday, Mr. Das initially insisted that he had only recommended mining in Sijimalli and not Niyamgiri. When faced with the Lok Sabha record, the MP, also the founder of the Green Kalahandi movement, admitted that he had learnt a lot since that day one-and-a-half decades ago.

“I had not visited Niyamgiri then. I did not know of the Dongria Kondh links to that place then. At that point, I did not know it was a densely forested area,” he said, speaking to The-Hindu over telephone immediately after the mass rally was held by Congress leader Rahul Gandhi in the Niyamgiri area.

“Of course, the Kalahandi district needs more industries, but it should not be development at the cost of the people, at the cost of the forests,” Mr. Das said, adding that the Vedanta project had failed to generate sufficient local jobs, or provide health and education facilities. “I will still be happy to support an industry that takes into account the views of the local people, that will ensure the future of all stakeholders, that follows all the laws…There can be other mines, but why don’t they go and find an abandoned mountain, instead of Niyamgiri?”

Note that the government of Odisha (a Congress government led by Janaki Patnaik) signed the first MOU with Vedanta for mining in Lanjigarh in 1997, exactly 13 years ago, a year after the above statement by Bhakta Das.

2. Bhakta Das as well as the Youth Congress Chief of Odisha, Pradeep Majhi (MP Nabarangpur) are not against mining for bauxite. They just don’t want it now in Lanjigarh. Following is from a report in Orissadiary.

Orissa Pradesh Youth Congress chief, Nabrangpur MP Pradeep Majhi on Thursday said Vedanta can look for alternative sites except Niyamgiri from where it can mine bauxite to feed its one- million- tonne alumina refinery at Lanjigarh in Kalahandi district.

He suggests alternative sites—Kuturmali, Bijimali and Sabarmali hills which are in the periphery of Niyamgiri and there are no habitation of tribals in this region. He said The Congress party is not against industrialization. There are many other hills where there are no tribals and that can be used by Vedanta which are only 8 kms from Niyamgiri. But it is clear that no mining would be allowed at Niyamgiri.

3. Not wanting in Lanjigarh and some other place is fine depending on how sacred that mountain is to the local adivasis. But did the activists hyped up the sacredness to stop the project? I have no idea. But the following excerpt from a report in Telegraph seems to suggest that way.

Regarding industrialisation and its effects on Niyamgiri, Jakesia said: “I realised that for bauxite excavation, only the surface level of the rock is used.

This is unlike iron ore and coal mining, where one has to go below the surface. Thus, the process is fairly smooth. You will be surprised to know that puja offered to Niyam Raja was never performed there. Now, after the spread of awareness, the puja is performed on top of the hill.”

4. In http://www.orissalinks.com/orissagrowth/archives/3944 we mentioned several disturbing questions raised by Nilmadhab Mohanty (a senior Fellow, Institute for Studies in Industrial Development, New Delhi) on how the government went about this. The following excerpt from an article in Economic Times raises additional disturbing questions.

On August 24, the Central government said that Vedanta Aluminium had not sought prior approval for expanding the refinery capacity to 6 million tonnes from 1 million tonnes. Another government decision that day, announced by the minister of state for environment and forests Jairam Ramesh, stopping plans to mine bauxite at Nyamgiri near Lanjigarh, attracted much more attention but the brake on the refinery expansion could have a longer term impact on the fortunes of Vedanta. The bauxite was to be supplied to the refinery.

The chief operating officer of the Anil Agarwal-controlled company, Mukesh Kumar, expressed his doubts on Thursday over the “intention” behind these announcements in view of an earlier notification.

The ministry of environment and forests had said on August 19 that for all projects which were increasing capacity and where terms of references—the guidelines and scope for any expansion—have been mentioned and where construction activities have been started, the terms of references may be suspended or withdrawn.

"Instances have come to the notice of this ministry where project proponents have undertaken construction activities without obtaining requisite environmental clearance…No activity relating to any project covered under this notification, including civil construction, can be undertaken at site without obtaining prior environmental clearance," the notification added.

The notification relates to environment impact assessment (EIA)— a crucial part of the project approval process under the Environment Protection Act. The EPA is the umbrella legislation that regulates the impact of all industrial and commercial activities on environment.

The Vedanta official said that no prior approval for expansion was needed according to the rules in place—the Environment Impact Assessment notification of 2006—before the changes announced on August 19.

"There is no threshold limit given in the EIA notification for such a project," Mr Kumar told ET. "Hence prior environment clearance, as per the notification for our proposed expansion, is not mandatory before undertaking any construction activities."

Mr Kumar also referred to a section in the 2006 notification which stipulates that approval to the terms of reference for any project has to be announced within 60 days from the date of submission. "If the decision is not conveyed within 60 days, then the terms of references suggested by the applicant, "shall be deemed as final terms for the EIA study."

Vedanta had submitted its proposal for expanding the capacity to the ministry of environment and forests for approval on October 3, 2007. The company didn’t get approval within 60 days, which is the mandatory period as per the notification.

Mr Ramesh did not respond to calls and text messages sent to his mobile.

We will add more things as they come out. 

Regardless of all of the above, my current view is that stopping Vedanta mining in Lanjigarh, although done in a very partisan and high handed way, was a high profile example to make the point that environment and forest rights need to be taken seriously, to send a message to the maoists that the UPA-2 government (mainly Congress) will protect tribals, and to send a message to the tribals that they can rely on the government.

While a government should treat everyone equally and follow the law and not make one-time examples, the motivation here makes some sense on the ground of greater good of the country that currently faces the maoist menace who reportedly use mining and miners in their recruiting plays.

As I finish writing this, I read an article in Indian Express, that points out many additional interesting issues.

Although there are tons of newsreports on the Saxena Committee report on Vedanta which quote extensively from the allegations of the committee there is very little (and mostly soundbites) from the perspective of the Odisha government and Vedanta.

The following by Nilmadhab Mohanty (a senior Fellow, Institute for Studies in Industrial Development, New Delhi) is from http://business.rediff.com/slide-show/2010/aug/25/slide-show-1-a-few-disturbing-questions-in-the-vedanta-issue.htm. I am not sure I agree with all the points mentioned below. But it is one of the few articles that is from the other side and hence worth pondering.

The decision of Union Minister for Environment and Forests Jairam Ramesh not to grant Stage II forest clearance to the proposal of the Orissa Mining Corporation (OMC) for bauxite mining in Niyamgiri in Orissa has been welcomed in many circles, in particular by the environmental activists, for the protection it will provide to an ecologically sensitive area of the country and to the Kondh tribes (and Dalits) living in the area.

There are, however a few disturbing questions that need to be answered by the ministry in order to buttress the minister’s claim that the decision was an objective one with no prejudice or politics influencing it.

First, the manner and time-line followed in the decision-making. The Orissa state government seems to have applied for final clearance in August 2009.

The Forest Advisory Committee (FAC) has been deliberating the proposal at least since November 2009. In addition to the information submitted by the State and the central government’s own agencies, it had the benefit of the recommendations made by a three-member expert group which submitted its report in February 2010.

FAC then asks for yet another committee under the Ministry of Tribal Affairs, which is the nodal agency in the central government for tribal rights. The environment minister, however, appoints his own committee (the Saxena Committee) in the last week of June 2010.

Then the pace quickens: The environment minister writes to the law ministry on July 19 to obtain the Attorney General’s opinion if the ministry of environment and forests (MoEF) apply its mind and decide in the light of the Supreme Court’s earlier decision giving forest clearance.

The AG replies promptly on the following day; Saxena submits report on August 16, FAC deliberates without much loss of time and submits recommendations on August 23, and the minister announces his decision with a 20-page reasoned order on August 24, 2010!

The must be a record in governmental working! The affected party, namely the Orissa government, is hardly given any chance to given an explanation to the MoEF.

In fact, the hapless Orissa officials seem to have met the minister on August 24 when he was in a tearing hurry to announce his decision!

Second, OMC’s proposal for forest clearance for the Niyamgiri bauxite mines is separate and distinct from Vedanta Aluminium Ltd’s (VAL) aluminum refinery project, although bauxite is meant for the refinery. Why have these two cases been mixed up in the minister’s order?

Forest clearance is a statutory requirement under the Forest Conservation Act 1980 and the FAC was deliberating on the subject on the request made by OMC/Orissa government and the minister is within his rights to act on their recommendation.

If VAL violated the conditions of its approval or even the Environment Protection Act, it could have been proceeded against separately.

After all, the MoEF’s eastern regional office had sent its communication reporting violations in May 2010. By combining the two issues the ministry gave the unfortunate impression that it was targetting Vedanta rather than dealing with forest clearance for Niyamgiri mines.

One of the major issues raised by the Saxena Committee and endorsed by the minister is the potential ecological and human costs of the mining project.

In fact, this is an issue which is relevant not so much during forest clearance procedure but more appropriately during the impact assessment study under the Environment Protection Act.

For Niyamgiri both ‘in principle’ forest clearance and environmental clearance had been given. Besides, the ‘in principle’ approval was given in October 2007, a month before the Supreme Court’s order on the subject.

Did the MoEF discover the ecological and human costs only after receiving the Saxena Committee report?

The main thrust of the Saxena Committee report and about the only valid reason for denying final forest clearance for the Niyamgiri mines appears to be the alleged non-recognition of the forest rights of the tribals and absence of consent from the concerned communities for diversion of forest land.

There seem to be a few complications on this issue. For one the Saxena Committee has given very liberal and wide-ranging definitions of ‘forest’ and ‘forest rights’ as per its interpretation of the Forest Rights Act. It is another matter that the interpretation of statutes is a responsibility of the courts, not of a committee appointed by a minister!

The Saxena Committee, for example, defines ‘forest’ to include ‘forest dwellers’ as well as ‘trees and wildlife’, literally overturning the Apex Court’s definition of ‘forest’ in the famous Godavarman case.

It also interprets communal and habitat rights of the primitive tribal groups to extend beyond their areas of residence to cover the entire eco-system.

Since the Forest Rights Act is a new piece of legislation these issues will need to be settled by the courts in due course of time, keeping in view the practicability of implementation.

In any case, the Orissa officials seem to have argued that they had complied with the legal requirements of the legislation (which, by the way, came long after the mining proposal was mooted) to the best of their ability.

Surely, Saxena and the MoEF cannot both be the prosecutor and the judge on this matter!

Also, what about development — both of minerals, which are the nation’s dormant resources, and the tribal groups, who inhabit the area?

 

From the Saxena Committee report (which is silent on this subject), it would appear that Mr Saxena would like them to continue as ‘forest dwellers’ in perpetuity so that they continue to enjoy their ‘forest rights’, living on roots and herbs and we continue showcasing their primitive tribal identity and abject poverty nationally and internationally!

Finally, what happens to the considerable investment that has gone into the industry?

Environmental and forest clearance procedures are about balancing the needs of development with those of conservation. To the extent possible the project proponents, including the state government, should be given an opportunity to correct the deficiencies. (After all it is the state government, not OMC/Sterlite-Vedanta, that has to settle the forest rights).

It is true that in extreme cases permission will have to be denied but that should have been before the start of the refinery when the required clearances were given.

To do so now will be unfair and damaging to the government’s reputation for objectivity.

Following is from Sreelatha Menon’s article in Business Standard regarding what violations the environment ministry claimed that occurred. 

The Saxena Committee has drawn up a litany of infractions at Niyamgiri by both Vedanta and the Orissa government.

The road leading up to the Centre’s denial of permission to Vedanta Alumina Ltd to mine for bauxite in the Niyamagiri hills of Lanjigarh has been lined with gross violations and misrepresentation by both the company and the state government of Orissa.

The NC Saxena Committee, set up by the Ministry of Environment and Forests, details the manner in which laws have been flagrantly flouted to facilitate a project that has been aggressively opposed by tribal groups in the area.

The panel’s findings show that the Forest Rights Act, Forest Conservation Act, Environment Protection Act as well as Panchayats (Extension to Scheduled Areas) Act, which applies to scheduled tribes covered under Schedule V of the Constitution, have been the main casualties as far as the Vedanta project is concerned.

The alleged breach of laws by the company in collusion with the state government and made possible by the Centre’s neglect resulted in the company obtaining illegal possession of 26 hectares of village forest land without ever obtaining appropriate clearances. It was on the verge of launching mining operations the moment it received forest clearance, jeopardising not only the life and culture of the indigenous tribal groups, which are protected under Schedule V, but also in contempt of a statute expressly designed to empower tribal communities: the Forest Rights Act.

Felling the Forest Rights Act: The most blatant violation, the Saxena panel states, has been that of legislation drawn up specifically to give forest dwellers a voice. It also gives them the authority to agree or not to a project that affects the forests they lived in. In the case of the Vedanta project, the law just did not seem to exist. The state government chose not to consult gram sabhas of the villages or to issue any statement on their response to the Centre.

And in spite of this, 26 hectares of forest land has been in the possession of the company’s refinery and forest clearance for more forest land was pending for the mining project.

How PESA was ignored : According to the Saxena Committee, PESA , there was scant regard for the Panchayats (Extension to Scheduled Areas ) when it came to pushing the proposed mining lease for Vedanta. Indeed, the state government blatantly violated it.

This Act requires the authorities to consult elected village bodies such as a panchayat or Gram Sabha before the acquisition of land for any development projects located in tribal territories listed under Schedule V. Authorities also have to consult the Gram Sabha or Panchayat before resettling and rehabilitating those affected by such projects. None of this was done.

Stolen forests: The Saxena report lists several alleged irregularities by Vedanta in Niyamagiri. Occupation of village forest land for the construction of its refinery tops the list. On August 16, 2004, Vedanta Alumina submitted a proposal for the appropriation of 58.943 ha of forest land — 26.123 ha to set up a refinery at Lanjigarh and the remaining for a conveyor belt and a road to the mining site. The forest lands required for the refinery, in a number of small patches, traditionally belonged to the tribal and other communities in neighbouring villages.

However, while filing for environmental clearance on March 19, 2003, the company claimed that no forest land was needed and that there were no reserve forests within 10 km of the proposed refinery. The Saxena Committee says this claim was patently false, since the reserve forests are less than 2 km from the refinery site. Even the factory is located on forest land belonging to the villagers.

The Environment Ministry accorded environmental clearance to the refinery on September 22, 2004, on the basis that the project did not involve appropriation of forest lands. Since this clearance was acquired by submitting false information, it is invalid and should be revoked, the committee headed by Saxena had recommended.

EPA violations: The report also finds the company guilty of violating mandates of the Environment Protection Act (EPA). Environmental impact assessments required under the EPA are inadequate and do not examine the full implications of the refinery and mining project on the environment, particularly those related to hydrology. The report says no effort was made in the Vedanta mining project (and aluminium refinery) to solicit the informed consent of affected villages.

It says “the required number of public hearings’’ were not held and the” Environmental impact assessments, which contain data essential for informed decision-making and consent, were not made available. Even critical information, such as the fact that the project would occupy their village forest lands, was not disclosed.’’

In a 2003 public hearing, no member of the affected Dongaria Kondh tribe was recorded as being present—a basic violation of their right to consultation and informed consent. Besides suffering from the same shortcomings as the 2003 public hearings, a public hearing in 2009 for refinery expansion distorted and reinterpreted the proceedings: the official minutes of the meeting record that the project met with widespread community support, even though only one person out of 27 spoke in favour of the project.

Violator and polluter, too: When the environment ministry granted environmental clearance to the aluminium refinery, it was subject to strict compliance and identified a list of other key conditions for management of waste from the refinery. It also required that the company strictly adhere to the stipulations made by the Orissa State Pollution Control Board (OSPCB).

But in the course of the refinery’s operations between 2006 and 2009, Vedanta Alumina repeatedly failed to adhere to these requirements. Between 2006 and 2009, the OSPCB documented numerous instances whereby the company had failed to put in place adequate pollution control measures to meet not only its own conditions, but also those of the Environment Ministry. OSPCB findings indicate that the company commenced operations without the necessary systems to adequately manage waste and pollution. Some processing and waste management systems were not built or operated in conformity with applicable regulatory requirements.

Expansion without clearance: The most shocking violation on the part of the company has been its six-fold expansion of the refinery without even obtaining clearance from the ministry. It had received sanction to set up a capacity of 1 million tonnes, but it has gone on to expand to 6 million tonnes without any approvals. This was in spite OSPCB strictures to its January 12, 2009 memo, asking the company to immediately cease construction related to expansion of the refinery as it had not obtain the required permissions, including the environmental clearance.

Tribal groups, which have been fighting on behalf of the Dongaria Kondhs, are now finding these violations, especially Vedanta’s illegal possession of 26 hectares of forest land, as the starting point for the second part of their struggle. Says Prafulla Samantara, who petitioned the Supreme Court on behalf of the tribals: “The report calls the refinery illegal and it has to go. Our fight will continue until it is shut down.” But Saxena feels that the refinery may continue and get raw material from other mines.

The violations in the case of Vedanta have been documented and accepted by the Centre, with the ministry refusing permission for mining operations in Niyamagiri. Tribal groups ask if this report and the consequences would have any implications on several other projects where similar violations have been raised to deaf ears. Forest Rights Act violations have been alleged against Posco, as well as several other mining projects, but the state and Central governments have so far shown no indication of reviewing them, says Campaign for Survival and Dignity, an umbrella group of tribal rights organisations.

•  The Saxena Committee report (pdf) is here.

   

Various KBK statistics are known to everyone here as well as to the planning commission. We will not rehash them here. We will just like to point out that various programs in KBK (such as RLTAP) will not work to their potential unless qualified people are willing to be there to implement those programs and unless there are enough local people who are qualified. For example, one can open schools and hospitals and initiate irrigation projects. But if teachers, doctors and engineers do not go there in sufficient numbers to staff the schools, hospitals and irrigation projects they will not achieve their impact. So while we make programs for schools, hospitals and irrigation projects we need to pay attention to the infrastructure aspects that will (a) create enough local teachers, doctors and engineers and (b) will not deter teachers, doctors and engineers to come to this place.

With that in mind we propose that the following be pushed with the central government for implementation in the next 7 years  — the remaining part of the 11th plan and the 12th plan starting in 2012. I think the list below is doable. (Much more needs to be aimed for and done through the state government, industries and people in this region; but here we only focus on what one can realistically push with the central government and achieve.)

1. Railway Infrastructure: The Railway infrastructure of the KBK districts need to be drastically improved. In particular there are several approved lines that need to be speeded up. In addition there are some hanging lines that need to be extended and completed. The following shows the current Railway lines in Odisha.

The following picture shows the lines that bring better rail connectivity to the KBK districts. The ones in brown have been approved and we request that they be completed within the next 2-3 years and. We request that the ones in blue are approved and completed within 5 years.

2. Airport at Jeypore:  Currently Odisha has one airport with commercial flights. That is in Bhubaneswar. AAI is in the process of making another airport at Jharsuguda. We propose that another airport be built near Jeypore-Koraput with commercial flights in mind (small planes to start with) to serve the KBK area. An airstrip is already there.  The following map shows the location and its distance from the other airports in India.

3. Roads: On roads, we request that the construction of the Vijaywada-Ranchi highway be expedited.  More.

4. HRD/Education: The 11th plan has good proposals regarding schools, ITIs and model colleges. But as we said in the beginning of this document, KBK needs to produce its own teachers, doctors and engineers.

As a first step the Odisha government decided to locate the Central University of Odisha in Koraput. However, considering the vast area of KBK, we request the following.

4.1   The 11th plan has provision for having medical colleges and engineering colleges in 5 of the 16 new central universities. (See the page from Volume 3 of 11th plan below.) We request that the one of those medical college and engineering college be established as part of the Central University of Orissa, Koraput.

4.2   A centrally funded engineering college of the kind in Longowal Punjab (SLIET), Kokrajhar Assam and the one being made in Malda (GKCIET): These three centrally funded engineering colleges have rural focus and we request that one such rural focused 3-tier (catering to workers, technicians and engineers) is needed for KBK. We request that it be made in Balangir. In the next page we have cut-outs related to the above mentioned three colleges which show their mission perfectly matches what is needed in the KBK districts.

4.3 Upgradation of Food Craft Institute Balangir to an Institute of Hotel Management.

4.4 Some kind of a centrally funded institute in Kalahandi: One has to be realistic in pursuing something that is achievable; something central government has established in smaller towns in other states; something with similar philosophy as SLIET/GKCIET/CIT-Kokrajhar but in a different field.

4.5 Special funding for proposed state Universities in KBK: The Odisha government higher education task force has recommended new state universities to be made in Jeypore (Koraput), Bhawanipatna (Kalahandi) and Balangir. We request that the central government give a one time 50 crore grant to each of these proposed universities so that they can be started at the earliest.

 5. Job Centers:

• Wagon factory in Kalahandi.
• Tourist infrastructure around Gandhamardan hills and Harishankar.
• Tourist infrastructure around Kolab dam and tribal hamlets of Koraput.

6. KBK+: In addition in the KBK+ district of Kandhamal a branch of Indira Gandhi National Tribal University (IGNTU) can be realistically pursued and achieved.

Final Word: Please make additional suggestions. But be realistic. Also, note that here we are talking about what to pursue with the central government.

People reading this blog must must have seen the news about the Saxena committee (which was empowered by Jairam Ramesh and the environment ministry) report on Vedanta’s operations in Lanjigarh, Odisha.

Although the report reads like an activist team’s report, the fact remains that the laws of the country are sacred and needs to be followed.

It is a different matter that laws are broken with impunity at all levels ranging from the laws reported to be broken by Vedanta to normal people extending their houses and gardens into government land, groups building temples as a ruse to capture government land where ever they feel like, people blocking roads, trains, doing bandhs whenever they feel like, etc. etc. In India laws are broken with impunity and are broken more often than they are adhered to. But this does not excuse what Vedanta is reported to have done. The committee report also rebukes the Odisha government for its hand in the whole affair.

However, one needs to put this report in perspective with what the environment ministry and Jairam Ramesh have found in rest of India. Following are excerpts from a report in rediff.in that gives us some added perspective.

… several industrialists are also upset about what they call Environment Minister Jairam Ramesh’s activist-like positions. "He is taking positions, which are normally associated with unreasonable activists and their organisations," says one leading industrialist whose project is stuck. …

… Data from the ministry’s website show that of the 58 projects that have come up for Coastal Regulation Zone clearance since April 2009, it gave only half a dozen of them the green signal.

Over 1,800 projects are awaiting clearances as of the first week of this month.

…"There are people who consciously instigate and organise people in coastal Andhra against projects coming up in the region," says a spokesperson of a power company,  which is promoting a project in coastal Andhra Pradesh.

"Land availability is a big issue in India. Developers can approach the ministry only after either acquiring the land or have assurances to get the land, to request for the terms of reference to carry out an Environmental Impact Assessment study. By that stage, a lot of investment and time may have gone into execution of the projects, and still you are not sure of getting the clearance," says Sanjay Sethi, executive director (infrastructure) at Kotak Investment Banking.

"It is necessary to have more transparent and clear guidelines and checklists for land available for various commercial and industrial uses, with clear maps of sensitive zones, which should be easily available to project developers," he adds.

… To be fair to the environment ministry, there are issues like misrepresentation of facts by project developers and the state, or conflicting reports on issues by expert panels.

In a recent development, the environmental clearances for at least four projects in an around Srikakulam in Andhra Pradesh were suspended by the ministry.

On July 15, the ministry cancelled the clearance given to Nagarjuna Construction Company’s 2,640 megawatt (Mw) coal-based super critical thermal power plant at Gollagandi and Baruva villages in Srikakulam.

An expert panel said most of the project land allocated by the state government might be regarded as wetland, contrary to an earlier panel report that the 750 acres of grasslands were barren and not fit for agriculture.

The same expert panel, which visited East Coast Energy’s 2,640 Mw thermal project near Kakarapalli village in Srikakulam during the same time, found the state government had ignored reports on the ecological value of low lying areas of the well recognised Naupada swamps wetland and migratory bird breeding in nearby Telineelapuram of Srikakulam.

"This amounts to suppression/distortion of facts," the panel said.

A nearby project – that of JSW’s 1.4 million tonnes per annum (MTPA) alumina refinery and a co-generation plant – is also being reviewed by the ministry.

… On June 28, the ministry directed the formation of a supervisory committee to monitor the influence of toxic effluents from JSW Energy’s 1,200 Mw thermal power plant at Jaigad in Maharashtra, following apprehensions that effluents could affect the quality of Alphonso mangoes and cashew orchards in the region.

… Ten days before that, Jindal Power Limited drew the wrath of the ministry for commencing construction of a 2,400 Mw power project at Tamnar in Chhattisgarh,  without obtaining prior environment clearance.

The ministry has directed the state government to stop work and initiate action against the Naveen Jindal-promoted company.

Some of the other high-profile projects that have been halted include the Maheshwar Hydroelectric project on the Narmada river in Madhya Pradesh on grounds that the conditions of the statutory environmental clearance were not complied with and the resettlement and rehabilitation of the project-affected families was less than satisfactory – charges denied by the state chief minister and the company.

… Also, many say the minister has involved himself in much-publicised wars of words with Civil Aviation Minister Praful Patel over the environment ministry’s reluctance to clear the Navi Mumbai international airport, citing destruction of mangroves, razing of a hill and diversion of two rivers; with Road Transport Minister Kamal Nath, who openly accused him of blocking projects;

… But, even his sharpest critics agree on one thing: Ramesh has made sure that no one can treat the environment ministry lightly any longer.

… "This is probably the first time that an environmentalist has become a minister. He is almost single-handedly bringing about a paradigm shift within the government about how to view progress and development," says Pandey.

I agree with the sentence in the red. Earlier companies and state governments were not taking the environment ministry that seriously. Ramesh’s actions will make sure that everyone take the environment ministry seriously. That is a good thing and kudos to Mr. Ramesh for that.

However, as far as Odisha is concerned Jairam Ramesh seems to have something against it. We say that for the following reasons.

• When Odisha was trying for an IIT Jairam Ramesh insulted Odisha with his comments. See http://www.orissalinks.com/archives/286.
• Recently, Hindustan Times (see http://www.hindustantimes.com/Environment-Ministry-puts-on-hold-Vedanta-University-in-Orissa/Article1-542363.aspx) reported the following: "The Union Environment Ministry on Tuesday put on hold the controversial Rs.150 billion Vedanta University project in Orissa following complaints of alleged irregularities by its promoter Anil Agarwal Foundation. The direction to keep the project in abeyance has come within a month of the Ministry granting conditional environmental clearance to the Foundation which is building the university." Now stopping a mine or a factory or an airport for environmental reasons may make sense, but a university?? That too, just because some one complained. No investigation! Just people complained and he stopped the project, when the project was about to construct a medical college!!
• Jairam Ramesh and his ministry recently granted environmental permission to construct the Polavurum dam in Andhra Pradesh against the objections of the Orissa and Chhatisgrah government. See http://timesofindia.indiatimes.com/india/Environment-ministry-clears-Andhra-project/articleshow/6233874.cms . Times of India was surprised with this. It wrote: "Oddly, while the ministry had set up separate committees to investigate the settlement of rights under the Forest Rights Act in other high profile cases such as Vedanta and Posco which propose to displace far lesser people, in the Polavaram case the ministry has decided to accept the state government’s compliance report on face value.  The mega-project is expected to submerge 276 villages displacing upwards of two lakh people by some estimates. "   

In summary, while Jairam Ramesh deserves kudos for putting his foot down on environment laws and making sure everyone takes them seriously, people of Odisha need to be very careful of him as he seems to be against Odisha; he has stopped projects clearly beneficial to Odisha (namely, Vedanta University) by using his environment stick, and at the same time has allowed projects clearly harmful to Odisha  (namely, the polavurum dam) even after the Odisha government and Odisha chief minister have vehemently objected to it. This does not at all gel with the actions they took against Vedanta University. There the project was ordered to stop because some people complained. Here the project was given green signal despite the state of Odisha and its chief minister complaining and that too reportedly without any enquiry. 

Following article titled ” `Rahul hand behind POSCO, Vedanta mess’ – Cong counters BJD charge” is from Times of India Bhubaneswar edition. Thanks to HM for bringing this to our notice and sending it to us.

Following are excerpted from Pioneer reports at here and here.

• Vedanta Aluminum would enhance its refinery, smelter and power plant capacity with a total investment of `37,440 crore. Vedanta Aluminium company would enhance its production capacity Langigarh unit to six million tonne from existing one million tonne. The company would also enhance its production capacity of Jharsuguda aluminium unit to 1.6 million tonne from existing 0.25 million tonne per annum. Similarly, the company would also increase power generation capacity of its CPP (captive power project) to 1,350 mega watt from existing 675 MW at Jharsuguda.
  
• NSL Nagapatnam’s `8,900 crore investment plans in the State. The company would set up a 1320 MW power plant in Angul district at a cost of `6,600 crore, a 5,000-tonne sugar refinery at Paradip with an investment of `800 crore and a textile and spindle mill with 3 lakh spindles at a cost of `1,500 crore at Rayagada.
• ACC Cement’s `1,850 crore three MTPA cement project along with a 50 MW CPP in Malkangiri district 
• Bhusan Steel’s `3,000-crore steel park at Meramundali.
• SPI Ports to set up a 1,320 MW (2 x 660 MW) power plant at Mahakalpada in Kendrapara district at an investment of Rs 6,600 crore.
• KU Pvt Ltd would invest Rs 7,260 crore to set up a power project with 1320 MW power generating capacity at Thakurpur in Sonepur district.
• Rohit Ferro Alloys would spend Rs 2500 crore for setting up a 67.5 MW captive power plant at its 0.6 MTPA stainless steel project at Kalinganagar in Jajpur district.
• Aditya Aluminum to enhance the capacity of its Rayagada alumina refinery to 1.5 MTPA from the present 1 MTPA, and Jharsuguda smelter from 0.26 MTPA to 0.36 MTPA with an total investment of Rs 11,000 crore,
• Jindal India is proposing to enhance the capacity of its power plant from 1,200 MW to 1,800 MW with a total investment of Rs8, 000 crore.
• Ind-Bharat is proposing to expand its power project capacity from 700 MW to 1320 MW by adding a 660 MW unit with a total cost of Rs 3300 crore.
• Kalinga Energy, which is now shifting its site from Babuchaki in Sambalpur to Sodamal in Jharsuguda district has also got green signal to enhance the capacity of its power project from 1000 MW to 1320 MW with a total cost of Rs 6500 crore.

This is good news. But just to make sure that the Railway wagon factory happens in Kalahandi and is not shifted to another location, the Kalahandi people should  keep copies of all newspaper articles on this. That way in case the CM changes his mind, the copies of the news paper reports on this can be presented to him. Following is a screen copy of the report in Pioneer.

There are tons of news items alleging how mining in the Niyamgiri hills will destroy the way of living of the Dongria Kondh people. Reputed organizations such as Action Aid and Survival International have strongly campaigned against the mining there and have castigated the state government of Odisha and Vedanta Resources for intending to mine Bauxite in the Niyamgiri hills. The following report from Telegraph gives a different viewpoint that one also needs to read and think about.

From the remote Dongria Kondh village in Sakata to the capital’s Aryan School of Management Information and Technology, Jitu Jakesia has come a long way.

The first from the Dongria Kondh tribe to clear the Class X board examination, the firebrand tribal leader from Muniguda block in Jakesia, is now concentrating on his studies.

He believes that without education, the Primitive Tribal Groups (PTGs) cannot succeed in its mission.

Representing his community before the joint committee of the ministry of environment and forests and ministry of tribal affairs, Jakesia put forward the problems faced by the Dongria community and what should be done to remedy them as per the provisions of the Forest Rights Act.

…“After passing the matriculation examination, I started began attending high school in Muniguda College. I pursued studies in the Arts stream. I completed my graduation from the same college. During my three years in college, I worked as an activist, fighting against industrialisation. I thought that this would make a difference, as I was inspired by NGOs and political parties,” he said.

Jakesia was, however, disillusioned by political parties and voluntary organisations.

“At the end of the day, resources really matter. During my student days, I received no help from voluntary organisation or political party. The members of my family were alcoholics. All these problems forced me to focus on my career as a student and not an activist. I ended up continuing my studies,” he said.

…Regarding industrialisation and its effects on Niyamgiri, Jakesia said: “I realised that for bauxite excavation, only the surface level of the rock is used.

This is unlike iron ore and coal mining, where one has to go below the surface. Thus, the process is fairly smooth. You will be surprised to know that puja offered to Niyam Raja was never performed there. Now, after the spread of awareness, the puja is performed on top of the hill.”

He said that there was a time when no one was aware of Niyamgiri.

“If you search on the internet now, you will find thousands of results. The industrial development has given Kalahandi many things. It’s quite visible in the economy and development. So, I do not think development is unnecessary’’ he told The Telegraph.

During submission of his grievances regarding the Forest Rights Act, Jakesia had said: “The revenue officials have made many blunders by marketing forest land as hill land.”

There are many instances where there is no scope for individuals or communities to derive benefits from the Act, as the officials don’t understand the problem.

With so many loopholes, requisite amendments should be made, Jakesia had told the joint committee.

See also the article at http://kalahandia.blogspot.com/2010/07/mining-project-will-bring-development.html and the following youtube video for more on this young man’s views.

The Telegraph article spells the name of the young man incorrectly. His correct name is Jitu Jakasika. If one googles his name one will read many old article where Jitu is fighting against mining. See for example this article at http://www.survivalinternational.org/news/3294 in the pages of Survival International.

Following is an excerpt from a report in tathya.in.

The State Level Single Window Authority (SLSWA) chaired by the Chief Secretary green signalled projects worth of Rs.37,440 crore.

Expansion of Alumina Refinery at Lanjigarh in Kalahandi from the existing 1 Million Ton Per Annum (MTPA) to 6 MTPA has been allowed.

This project is facing opposition from local people and Union Minister for Forest & Environment, said sources.

Aluminium Smelter at Jharsuguda from the existing 0.25 MTPA to 1.60 MTPA expansion allowed by the Authority, said an official.

Similarly expansion of the Captive Power Plant (CPP) at Jharsuguda from 675 MW to 1350 MW has been allowed, said sources.

These proposals were pending earlier and with the clearance of Single Window Authority, it will go to the High Level Clearance Authority (HLCA) for final clearance, said an official.

Earlier we discussed the coastal belt and the western industrial corridor. However, there is a big part of Odisha outside of these two areas. Although, that area was long neglected except small industrial pockets in Rayagada and Koraput area, things have started happening in the overall area. Following is a map of that.

In the map above Berhampur and Balangir are reference points for the southern tip of the coastal belt and western industrial area respectively. Coming back to the outposts the current industrial areas are:

• Koraput-Jeypore Sunabeda and
• Rayagada-Therubali

They are 150 kms apart. Besides industries, both areas have several engineering colleges and a central university (possibly with a medical college) is coming up near Koraput.

North of Rayagada-Therubali is the Lanjigarh operations of Vedanta and its emerging township. How fast this area develops will depend on how quick there is an understanding between the loacls and the Vedanta people.

Further north is the Bhawanipatna-Kesinga-Titlagarh area. Titlagarh is a railway junction. A train line connecting Bhawanipatna and Junagarh to Lanjigarh rd of the Raygada-Titlagarh line should have passenger traffic in a couple of years. Recently, Bhawaniptna is getting some attention from the state government in terms of HRD institutions. A government engineering college and a government agricultural college has started here and the higher education task force has recommended a state university here. A private medical college is under construction. (However, its progress is slow.) I hope the government takes over the medical college infrastructure that has been built and makes it a government medical college and a location in this area is chosen for the announced Railway wagon factory.  However, for the area to further develop and develop rapidly, the locals need to actively chip in. They need to learn how locals in the Koraput area, Rayagada area, Gunupur and Parlakhemundi have created  and/or facilitated private HRD infrastructure. (For example, each of them have private engineering colleges.) In addition they should form a win-win partnership with Vedanta. If people don’t help themselves and don’t stop actively opposing private development instead of facilitating it, there is only so much the governments can do.

On the eastern side Parlakhemundi and Gunupur are slowly emerging as educational mini-hubs. The JITM and CRESM in Parlakhemundi are together becoming a private university and Gunupur has the biggest (in terms of student intake) engineering college (private or government) of the state. The railway line connecting Gunupur and Parlakhemundi to the Howrah-Chennai line at Naupada is about to start passenger service.

The lone central outpust is Phulbani. At present it has nothing much except some negative name recognition. The government needs to pay attention to this starting with pushing for the early establishment of a branch of the Tribal University here.

However, there are still several areas which are being left out. This includes the area south of Koraput (namely the Malkangiri district) and the districts of Nabarangpur and Nuapada. Unless development spreads there, they will be the new KBK of Odisha.

Following is from an article by Nageshwar Patnaik in Economic Times. Nageshwar is a big critic of the Tatas. So coming from him, I give a lot of value to the article.

Buoyed by successful resettlement of displaced persons after five years, Tata Steel, which is setting up a 6-mtpa steel plant at Kalinga Nagar in Orissa’s Jajpur district, has undertaken massive infrastructure development work at the project site to get support of the local people, especially the tribals.

Under its Tata Steel Parivar resettlement and rehabilitation (R&R) programme, the leading steel producer of the country has laid 20 km of quality motorable roads connecting all rehabilitation colonies, besides constructing 32 km of drainage system at adjoining tribal-dominated villages such as Trijanga, Sansailo and Gobarghati.

As many as 300 sodium vapour halogen lamp posts have been installed and pipe water provision made to provide better life to the displaced people living in rehabilitation colonies.

Each colony in the project area has a dispensary, community centre and several education centres offering management and technical courses.

“The Tata Steel Parivar rehabilitation scheme at Kalinga Nagar provides substantially better facilities than the government-framed R&R policy. The government policy provides employment for one member from each core household. On the other hand, Tata Steel Parivar policy provides employment opportunities for each major member of the core house. It also provides training facilities for technical skill upgrade,” a press statement, issued by the company here on Thursday, said.

The release also noted that scholarships were being provided for displaced persons pursuing higher education in professional fields such as medicine, engineering and management.

“An amount of Rs 2.21 lakh is also provided as onetime assistance in lieu of employment. Further, under the Tata Steel Parivar policy, each family is given a monthly maintenance allowance of Rs 2,000-2,300 till they get employment in the plant whereas the policy stipulates payment of maintenance allowance for 12 months only,” it added.

The opposition in Kalinganagar has finally seen light and allowed the Tatas to build the infrastructure of Kalinganagar. Related to this, The Telegraph of UK has apologized to the Tatas for their negative coverage.

Things also seem to be going in the positive direction in the POSCO front and I hope the people there visit Tata’s colonies in Kalinganagar and demand and get similar or better facilities and form a positive partnership with POSCO. In addition the Odisha government should push POSCO in developing a POSTECH like University in Paradeep.

However, there is not much progress with respect to Vedanta Aluminum in Kalahandi or Vedanta University in Puri. Here again it would be wise for the people there to visit Tata’s colonies Kalinganagar and demand and get similar or better facilities and form a positive partnership with Vedanta. But the time may be running out for Puri as Vedanta University Project has indicated that it may give up and move south where it will be welcomed with open arms. If that happens it would of course be a mistake of a century for Puri and Odisha.

In regards to the Arcelor-Mittal and Keonjhar the company really has not made much visible effort to woo the people.

Following is an excerpt from a report in Business Standard by Bishnu Das.

To meet the infrastructure needs of micro, small and medium enterprises (MSMEs) on a priority basis, the Orissa government has reserved 20 per cent of the area in all industrial estates, industrial parks, industrial corridors and land banks for such units.

Further, the state-owned Industrial Infrastructure Development Corporation (Idco) will promote new exclusive zones for MSMEs in all major industrial hubs of the state.

The locations where exclusive industrial parks will be promoted include Kalinganagar, Barbil, Jharsuguda, Sambalpur, Dhenkanal, Rourkela, Baragarh, Balasore, Dhamara, Gopalpur, Chhatrapur, Raygada, Kalahandi and Choudwar.

Such exclusive zones will also come up near the Special Economic Zones (SEZs) in the state.

… The government has also decided that wherever land is provided to large and medium industries, 10 per cent of the land, subject to a maximum limit of 200 acres, will be earmarked for setting up MSMEs. This will facilitate the setting up of ancillary and downstream units, preferably in cluster mode, a source added.

… Sources said that Common Facility Centres (CFCs), to be set up by the Special Purpose Vehicle (SPV) constituted for the MSME clusters, would be entitled for allotment of land free of cost at various locations in the state.

… To provide assured sources of raw material for such units, the Orissa Small Industries Corporation (OSIC) and the National Small Industries Corporation (NSIC) will set up raw material banks.

The two organisations will act as nodal agencies for MSMEs and public sector resource companies will accord priority to OSIC and NSIC in supply of raw materials, which will be made available to MSMEs at the lowest possible rate.

1. Economic Times on 3 more terminal markets in Odisha:

Orissa government will provide four terminal market yards to enable the farmers to sell their produce at market prices…. One of the terminal has already been constructed at Sambalpur with an investment

of Rs 86 crore and three others are coming up at Cuttack, Berhampur and Rourkela,…

2. Business Standrad on MOU with five IPPs for 4800 MW power:

The cumulative capacity of these projects would be 4800 Mw and the total investment is envisaged to be Rs 23203.52 crore.

With this, the total power generation projected in the state would increase to 31100 Mw from 26300 Mw earlier.The Orissa government has already inked MoUs with 21 IPPs with an aggregate generation capacity of 26,300 Mw earlier.

… Five companies who signed the MoU included BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd, Maa Durga Thermal Power Company Ltd and Vijaya Ferro and Power Private Ltd.

JR Powergen Private Ltd would set up a 1980 Mw thermal power plant at Kishorenagar near Angul at an investment of Rs 7988 crore. BGR Energy Systems Ltd also plans to set up a 1320 Mw power plant at Bhapur in Nayagarh district at an investment of Rs 6287 crore.

Similarly, Adhunik Power and Natural Resources Ltd would set up a 1320 Mw power plant at Birmaharajpur in Sonepur district entailing an investment of Rs 8079.74 crore. All these proposals were cleared by the High Level Clearance Authority (HLCA) chaired by the chief minister Naveen Patnaik.

On the other hand, Maa Durga Thermal Power would set up a 60 Mw ((2x30Mw) power plant at Tangi in Cuttack district, involving an investment of Rs 296.95 crore. Besides, Vijaya Ferro and Power Private Ltd, planning to set up a 120 Mw power plant (IPP) at an investment of Rs 550 crore at Kesinga (Turla Khamar) in Kalahandi district.

The total land requirement for these projects have been assessed at 4360 acres and about 22,325 direct and indirect employment opportunities are expected to be created when these projects would be fully commissioned. Three projects namely BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd would source water from the Mahanadi river system, Maa Durga Thermal Power would draw water from Birupa river.Vijaya Ferro and Power plans to source water from Tel river.

3. Hindu on preliminary bids for UMPP at Bedabahal:

the government was likely to invite preliminary bids for the 4,000-MW Ultra Mega Power Project (UMPP) at Bedabahal in Orissa by April 30.

The request for qualification (RSQ) for the project may be issued by April 30.

This Bedabahal project would be the sixth UMPP project. The government has already awarded four UMPPs, of which three — Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand — have been bagged by Reliance Power.

4. Sify on 595 crores for waterbody upgrade:

As many as 1817 water bodies, mostly the minor irrigation projects (MIPs) in 20 districts of Orissa, would be revitalized under the Centrally sponsored scheme of Repair, Renovation and Restoration (RRR) of Water Bodies.

These water bodies would be revitalized within a period of three years at an estimated cost of Rs 595.14 crore.

The funding for these projects would be shared between the Government of India and the Orissa government in the ratio of 90:10 for the Maoist infested, drought prone and backward districts of Kalahandi, Bolangir and Koraput (KBK).

For the other districts, the share between the Centre and the state government will be 25 per cent and 75 per cent respectively.

While the design ayacut of all 1817 projects was 2, 48,545.86 hectares, the irrigation potential of an additional 89,110.02 hectares of land would be revived through these projects, sources said.

Most of these projects under the RRR scheme are being taken up in south Orissa’s Ganjam district. About 800 projects under the scheme are to be taken up in the district at a cost of Rs 250.87 crore.

… Apart from Ganjam and KBK, the other districts where the scheme will be implemented are Bargarh, Bolangir, Gajapati, Jajpur, Kalahandi, Kandhamal, Koraput, Mayurbhanaj, Nabarangapur, Nayagarh, Nuapada, Rayagada, Sambalpur, Sundargarh, Balasore, Malkanagiri, Subarnapur, Deogarh and Dhenkanal.

The pilot project for this scheme was implemented for 137 projects in Ganjam and Gajapati districts at a cost of Rs 18.84 crore during 2005-06 to 2008-09.

5. Hindu on Japan giving 150 crores for an irrigation project:

Japan will also give … over Rs 150 crore for Rengali irrigation project in Orissa.

6. Hospitalitbizindia on a mega food park at Malipada, Khurda:

Government of India is likely to set up a mega food park and a marine food park at Malipara near Khurda in Orissa with an area of 282 acres. This information was given by Subodh Kant Sahai, Union Minister for Food Processing while responding to a demand raised by Naveen Patnaik, Chief Minister, Orissa at the Orissa Investors meet 2010.

Following strong campaign by the NGOs the mainstream media is all over Vedanta on these issues. Some of their articles and points are available at the following web sites.

• Survival International
• Amnesty International.
• Action Aid International.

Following is Vedanta’s side of the story obtained from http://www.bignews.biz/?id=843650&keys=Vedanta-Amnesty-Lanjigarh-Dongaria.

Vedanta Alumina Refinery at Lanjigarh has been built with the state of the art technology and the first Alumina refinery in the country and among few in the world having successfully implemented Zero Discharge System. The environmental measures adopted in the plant with respect to Air and Water Pollution is among the best and performance of the same is being regularly monitored by State pollution Control Board (SPCB). Based on Vedanta’s commitment towards Environmental Protection and Socio-Economic Development of the area, SPCB has renewed its Consent to Operate for 2 years instead of normal 1 year i.e valid upto March 2011. Vedanta’s initiatives for Zero Discharge, Zero Waste and Zero Harm is appreciated at all level and Vedanta’s is committed to become the first Alumina Refinery in the world to achieve this goal very soon.

Today, water and energy consumption at VAL refinery is the lowest in the country and is a proof of Vedanta’s commitment towards environmental protection .The allegation made by Action Aid has already been checked by top world recognized institutions like Indian Institute of Science, Bangalore, National Geophysical Research Institute, Hyderabad, Indian Institute of Technology, Kharagpur and find no substance in to it.
Regarding leakage- during initial trial runs only in 2007-08, we would like to clarify that no caustic effluent was ever discharged in to the river. On investigation by SPCB and expert team mentioned above, it was established that there was small seepage from the joint between earthen dyke wall and overflow pipes in Red Mud Pond which was collected and recycled back within the bounded area of Red Mud Pond for which provision has been kept in the design of Red Mud Pond by Indian Institute of Science from the beginning.

Vedanta strongly denies any allegations of pollution of the environment in Lanjigarh and of violation of human rights. Vedanta remains fully committed to pursuing all its investments in a responsible manner, respecting the environment and human rights and adopting the best corporate social responsibility standards practices.

Vedanta sustainable development strategy, known as the ‘Vedanta Way’ is all encompassing and comprises the following four principal elements:
• Environmental Stewardship: Respect for nature, enhanced resource conservation and use of environment friendly technology are embodied in our working,
• Nurturing People: People are our key assets. We are committed to build a flexible, flat and learning organization with an engaged and high performing work force. We believe in nurturing and mentoring leaders from within and providing opportunities for growth based on meritocracy, performance and integrity,
• Health and Safety: We are committed to providing a safe, secure and healthy workplace for all employees by using the best technology and practices, and
• Empowering Communities: Communities are integral to our business. We are committed to enhancing the quality of life of the communities near our operations and creating self sustaining communities. We work to gain and nurture our social license to operate in the host communities.

It is only because of support from local community, Vedanta could establish an Alumina refinery after 25 years ( last Alumina Refinery was built and commissioned by NALCO in 1986) in a record time of less than 3 years. With the successful commissioning of proposed expansion of Alumina Refinery and Aluminium Smelter at various location , Vedanta will be the third largest Aluminium Producer in the world.,
Background:

Indian Constitution has made enough safeguard in terms of Act Like PESA, special provision in constitution under Schedule V to protect and ensure development of tribal community. The issues raised by Action Aid regarding Dongaria Kondh and Mining Project were brought before the Hon’ble Supreme Court of India in IA Nos 1324 and 1474 in W P (C) 202 of 1995 and IA Nos 2081-2082 @ W.P (c) No 549/2007 and a judgement in favour of the project was given.

Kalahandi is one of the most backward and underdeveloped area in the country and known worldwide for years for ill things like Poverty, Hunger, Malnutrition, Drought, Malarial deaths, Cholera and diarrhea ‘s death, low literacy, lack of education and medical facilities even though it is one of richest resource district of Orissa having precious stones, granite, bauxite, limestone etc. Since, implement any large-scale mining operation presents wider environmental and public administrative challenges, this project was initiated by the Indian authorities themselves, having identified this most backward area of India as in need of significant economic investment and social development, as well as the most suitable location for such activities. By way of background, India’s national planning authorities had identified a number of least developed districts of the country, of which Kalahandi is one, which were in need of substantial socio-economic investment. It must be appreciated that a majority of the population in the area where the project is situated lives below the poverty line.

Following are excerpts from a report in tathya.in.

Odisha’s Power sector gets a relief as the first Unit of 2400 Independent Power Plant (IPP) at Jharsuguda would be commissioned in coming Summer’, he said to the media after meeting the Chief Minister.

This will add 600 MW to the state’s power production capacity and can help the State Government in facing the current power crisis. 

Mr. Agarwal revealed that construction work of world class Vedanta University near Puri has already started. 

At the first stage, the University will have a 1000 bed super specialty hospital and Medical College, also academic building. 

Vedanta Boss also informed the meeting that Lanjigarh refinery is fully operational by sourcing bauxite from other states, incurring a huge opportunity loss for both states as well as company. 

State Government has assured to look into the issue seriously and try to work out for an immediate solution. 

Construction activities for a specialized burn and trauma care centre at Bhubaneswar would begin very soon.

Following is an excerpt from a report in Business Standard.

After committing an investment of Rs 60,000 crore on various projects in Orissa including an aluminium smelter plant, an alumina refinery unit and a mega university project, London-based Vedanta Resources Plc has now evinced interest in setting up a steel plant in the state.

Vedanta plans to set up the steel plant in collaboration with engineering and construction major Larsen and Toubro (L&T).

… However, he did not provide details like capacity of the proposed steel plant, location and investment. It may be noted that in October 2004, Sterlite Iron and Steel Company, a subsidiary of Vedanta Resources, had inked an MoU (Memorandum of Understanding) with the state government for setting up a five million tonne per annum steel plant. The steel plant was to set up at Palasponga in the state’s Keonjhar district at an investment of Rs 12,502 crore. However, the project is yet to take off.

On bauxite supplies, Agarwal said, he has informed the state chief minister that Vedanta’s alumina refinery plant at Lanjigarh in Kalahandi district is operational and the company is sourcing bauxite from other states to run this refinery.

The chief minister has assured that us that bauxite supplies would not be a problem in Orissa which has the fourth largest deposits of the mineral ore in the country, Agarwal informed.

He further said the company is adhering to the environmental norms in running the Lanjigarh refinery, adding, “Our refinery at Lanjigarh is a world class refinery and it is a zero discharge and zero waste unit. …"

He pointed out that the company would commence mining operations at Niyamgiri hills in Kalahandi district after getting the environmental clearance.

Agarwal said, Vedanta has already invested Rs 39,000 crore on various projects in Orissa and these projects have generated direct and indirect employment for about two lakh people.

Vedanta Aluminium has also decided to set aside five per cent of its net profit or Rs 10 crore every year on welfare activities of the tribals of Lanjigarh. The amount will be spent on meeting the needs of the tribals in areas like education, livelihood and health.

The company will also build the hostel for the proposed engineering college of the state government at Bhawanipatna.

On the 2400 MW (6×400) power plant at Jharsuguda, Agarwal said, the first unit of the independent power project (600 MW) will be operational from the ensuing summer.

Talking on the company’s proposed university project, he said, “We have huge local support for our university project and at first we will set up a 1000 bed state-of-the-art hospital as a part of the project.” Apart from the 1000 bed hospital, Vedanta has also firmed up plans to set up a 100-bed burn and trauma care centre at Gangapada on the outskirts of the city. Construction work on this centre wold take off very soon, Agarwal stated.

Bishnu Das’s article in Business Standard lists many of the solar and biomass power unit projects that are in the pipeline in Odisha. Following are some excerpts.

Solar power units:

• 5 Mw power plant of RSB Energy Pvt Ltd in Sundergarh district
• Enzen Global Solutions’s 5 Mw solar power plant in Khurda district
• Lanco Solar’s 5 Mw solar plant in Cuttack district
• Sunark Solar’s 5 Mw power plant in Puri district
• Kolkata based SREI Infrastructure’s 5 Mw solar power plant in Bolangir district
• Moserbaer Pvt Ltd’s 5 Mw grid interactive solar photo voltaic project
• Sahara India’s 5 Mw solar power plant

Biomass power units:

• Rice husk based power plant being set up by Shali Vahana Green Energy Ltd at Nimidha village in Dhenkanal district
• Satya Bio-Power Industry Ltd planning to set up a 10 Mw plant in Ganjam
• A V N Power Projects setting up a 10 Mw power plant in Kalahandi district
• Prasad Bio-Energy planning a 10 Mw unit in Raygada
• Jay Laxmi Bio-Energy Ltd intends to set up a 10 Mw unit in Nayagarh
• Another plant of similar capacity is proposed by Andhavarapu Bio-Energy in Nawarangpur

Update: Following are some additional details from a report in Pioneer.

• Amtech Auto Engineering would set up the complex at an investment of Rs 15,820 crore near Tangi- Choudwar. It would set up a two million tonne steel plant and 500 MW captive power plant in the complex. With this about 33,000 people will get both direct and indirect employment.

  It may be mentioned here that Jamsedpur-based RSB Trasmissions (I) Ltd, one of India’s leading auto components manufacturers, is coming up with an auto complex at Mania in Cuttack. RSB Transmission will invest Rs 430 crore in the project.

• The committee also approved JK Cement‘s one million tonne capacity plant on the road between Athagrah and Choudwar.
• BOC would set up an air separation plant at an investment of Rs 434 crore in Rourkela. It would produce oxygen, nitrogen and argons.
• Bijaya Ferro Power Private Limited would set up a power plant at Keshinga in Kalahandi with an investment of Rs 550 crore. It would take water from Tel river to produce 120 MW power.
• Ind-Bharat’s proposal to enhance its power production capacity has also got the nod of the committee. It would set up its plant at Jharsuguda with an investment of Rs 3,300 crore.
• Facor would set up its captive power plant at Rahandia near Bhadrak.
• Due to shortage of water, few plants have also changed their sites. Odisha Cement Power Plant (OCL) has shifted its plant site from Mania to Rajgangpur.
• Jinadal Stainless Steel would set up its plant in Luni instead of Gajatara in Dhenkanal.
• Kalinga Energy Power Limited would set up its plant at Jharsuguda instead of Sambalpur.
• Scwal Brewage would set up its plant at Baranga instead of Choudwar at a cost of Rs 193 crore.
• The Rs 1,320 crore Sahara Power project has shifted its plant to Ghantabahal from Turul.
• German-based Gaunteman Pipery would set up its plant beneficiation plant and pelatisation plant. The beneficiation plant would come up at Barbil and the pelatisation plant at Dhamra. Around 1,605 crore would be invested in the project.
• Aditya Alumina’s proposal to enhance its production from one million tonne to 1.5 million tonne. It would also enhance its power plant from 650 MW to 900 MW.

Following is an excerpt from Orissadiary.

The projects of Adhunic Metalics and Jindal Stainless Steel at Sundargarh and Kalinganagar, respectively have been approved. The SWCLC has also given its green signal for an air-separation plant. Projects, involving Vijay Ferrochorme and Power Pvt Ltd and Adhunic Power plant have been cleared.

Amtech Metals would establish the integrated auto-complex, first of its kind in the state. Moreover, an auto-park, steel and power plant would also be established in the complex. The cost of the entire project has been pegged at Rs 15,820 crore. All the projects are expected to provide direct and indirect employment opportunities to nearly 47,000 and 1.5 lakh people, respectively apart from bolstering the socio-economic conditions in those regions where the proposed projects would come up, state Industries Secretary, Sourabh Garg said.

Tathya has some details on the Adhunik group’s project. Following are some excerpts:

Adhunik Power & Natural Resources Limited (APNRL) has proposed to invest Rs.3883.40 crore for the 4×250 MW power plant in Birmaharajpur in Sonepur district.

… Adhunik Metaliks Limited (AML), another member of the Group has proposed to set up Down Stream Park for stainless and special products with an investment of Rs.286 crore.  … downstream industries in hot-rolling, cold-rolling utensils, kitchen and hardware.  AML has also proposed for stainless steel pipes and alloys, which received the nod.
The park will be set up at Kumarmunda in a 300 acre area in Sundargarh district.

AML is setting up steel plant at Kumarmunda with a capacity of 0.41 million ton per annum (MTPA).

Tathya has also some details on the JSL project. Following are some excerpts.

JSL Limited posed a proposal to set up a Super Critical Thermal Power Station of 1320 (660X2) megawatt capacity, which has been cleared in the meeting. The Rs.4090 crore Greenfield project will be set up at Luni in Dhenkanal district.

Most importantly JSL, which is setting up a 3.20 million ton per annum (MTPA) capacity stainless steel plant at Kalinga Nagar has proposed to set up Stainless Steel Park (SEZ) with an investment of Rs.740 crore.  … The park will promote auto components, kitchen & life style, light engineering, white goods, cold rolling, pipes and tubes, and service centre. 300 acres of land for the park is needed for the park, which will have man power requirement of more than 2000, said sources. JSL plant is likely to produce stainless steel by end of 2010 and the park is also to be completed by the same time reveal the SLSWCA Report.

The above two downstream park proposals are most likely due to the recent government focus on those aspects, before giving mining leases. The govt. needs to make sure that the down stream parks indeed materialize as proposed.

To get KBK out of backwardness governments at the center and states have had packages for KBK, but they have not helped that much. The following suggestion by Jibanendra Mohanty in Orissa Today is a very good suggestion. Our government should pursue it.

Himachal Pradesh and Uttaranchal  have made significant progress on Industrialization during the last few years, via the Special Industrial Package provided by the Government of India. Most of the Industries set up in recent times  are in  Manufacturing/Engineering/ Agro-products/ Drugs & Pharmaceuticals/ Computer Hardware, etc  not dependent upon mining operations.  The high lights of these Industries are  a) they need small land parcels i.e.  areas of 1 to 10 acres, b) they provide  employment ranging from 50 to 1000 persons/unit.  These Industries do not need mining operation, do not need  high  water consumption nor do they create  major problem for Ecology and Environment. These Industries have made significant impact on the  employment & economic front and on  all round development of the States.

 The existing  special  package is valid up to end of 2010 and the States have already started lobbying for extension of the said package up to 2020.

Now the Question is why such special Industrial package is not being provided  for the KBK region of Odisha??

The above is a very good idea. Some links on special industrial package for Himachal Pradesh is here. Links for special industrial package for Uttarakhand is here and here. 

The Orissa state government should pursue this. In Koraput and Kalahandi the focus can be on downstream industries and Balangir which is very well connected by Rail as well as by NH the focus could be on all kinds of industries.