ISSUES SURROUNDINGCHANDRANSHU GARGElectronics & CommunicationB.Tech II Year
POSCO – Pohang Iron & Steel Company based in Pohang, South Korea POSCO-India Pvt. Ltd. is a subsidiary of POSCO, the world’s fourth largest steel producer and one of the most competitive steel companies.
POSCO signed a Memorandum of Understanding (MoU) with the Government of Orissa in June 2005, to set up a 12 MTPA steel plant near Paradip, Jagatsinghpur District, Orissa, with an estimated investment of USD 12 billion. Around Rs. 52, 000 Crore touted as India’s Largest Foreign Direct Investment
“India produces 56 million tons steel annually. China approximates that much in a month! Steel goes into infrastructure. We need to produce 110 million tons by 2012 if the India growth story is to chug ahead. POSCO India would be glad to contribute to that story with its plant at Jagatsinghpur. “ INDIA - 56 million tons per annum CHINA - 500 million tons per annum
India got a huge market for steel. India – one of the fastest growing economy. Cheap Man Power in India. India has huge iron ore deposits with it.
National Steel Policy (NSP), 2005 estimates that India’s steelproduction of 40 million tons in 2005-06 will rise to 110million tons by 2019-20. With the changed scenario it isexpected that the steel production will need to skyrocket to200 million tons by 2019-20. The government is activelyencouraging steel consumption so that the steel industry willact as the locomotive for economic growth. 2019-20 110 million tons 200 million tons
Location Jagatsinghpur District of Orissa (near Paradip Port). Iron Ore Requirement 20 million tons of iron ore per annum, for annual steel production of 12 million tons over 30 years Phases for the project
As per the MoU, based on the needs of the “Steel Project”,the Company will also develop and operate the followinginfrastructure :1. Mining ProjectMining facilities in the areas allocated by Govt. of Orissa / Govt. of India.2. Transportation ProjectRoad, rail and port infrastructure, including the dedicated railway linefrom the mine-belt to Paradip.3. Integrated Township4. Water ProjectWater Supply Infrastructure.
Orissa before POSCO - India Gross Output : 111,378 crores State GDP : 53,830 crores Employment : 143 lakhs (2001 census) Tax : 8170 crores (2005-06) Projected POSCO – India’s Impact Gross Output : +29,760 crores State GDP : +12,100 crores Employment : +8.7 lakhs (absorbs 88% of unemployment) Tax : +2620 crores
There has been growing opposition to the project in Orissa. The proposed plant will adversely affect 11 villages and rural settlements in three Gram Panchayats in Jagatsinghpur district, namely – Dhinkia, Nuagaon and Gadakujang. There were mixed reactions initially, the threat of losing lands in return for nothing soon caught up with the communities. By July 2005 the three Panchyats that were to be affected came together to oppose the project.
There are three main groups that are opposing the POSCO project : 1. POSCO Pratirodh Sangarsh Samiti (PPSS) 2. Nav Nirman Samiti 3. Bhita Mati Bachao Andolan
Total land area that has been sanctioned by the govt. for this project is 4004 acres. Govt. Land : 3566 acres Pvt. Land : 438 acres Because of the private land, 471 families would be affected from the three panchayats. Most of the govt. land out of 3566 acres has been under betel, cashew and other cultivations. So, around 4000 families and a population of 22,000 will be affected by the project in the area. These include all those persons directly dependent on betel vine cultivation, pisciculture, cashew nut cultivation and fishing.
Loss of livelihood, of a self sustained and thriving local economy and ofan entire way of life are concerns on which the local resistance to theproject is largely based on. "They are asking us to leave from here... what do they mean? We leave this soil, this wind, this sky and the peace we enjoy here…no we will not leave, this is our motherland…We have many examples of the families who were displaced in Trilochanpur by the IOCL plant. Those families are today in a state of misery. They have spent their compensation money and the women have suffered the most – having to do hard labour all day to support the family".
Project has been granted SEZ (Special Economic Zone) status- Region that haseconomic laws more liberal than country’s economic laws.Dr Damodar Raut, MLA clearly raised a concern pointing out that :“The SEZ (Special Economic Zone) status that has been granted to the project(principle approval has been granted by the Ministry of Commerce) would deprive thegovernment of taxes and pose a threat to security of the country considering thelocation of the project which has also been highlighted by the Home Ministry."He said that he was in support of the project without the SEZ status.
Nava Nirman Samiti repeatedly highlights the fact that theproject was problematic on the grounds that it is a ForeignDirect Investment where the Multi National Company isclearly interested in capturing the iron ore and mineralson a large scale which will affect the national economyand the local natural resource base.
Extraction of large quantities of water for the project willaffect, not only the local communities but would have farreaching impacts – severely affecting the drinking watersupply up to Cuttack and irrigation supply of four neighbouringdistricts.
Several environmental concerns includingdeforestation and destruction of coastal areas.
The government authorities and the local communities says that the land under betel vine and other cultivation expected to be acquired by the project was under the category of government land – inclusive of revenue land, forest land and also village forests or ‘gramya jungle’, to which people do not have legal titles. It was found however that the land in question has been in possession of the people for several generations. This is proven by the fact that the people have been paying an illegal occupancy fine to the local revenue administration since time immemorial. As per the Sub Collector, according to the Orissa Land Reforms Act, 1960, peaceful, continuous, uninterrupted possession of land, if proved, mandate regularization of titles and recording of rights.
To be most respected and admired company in India. To contribute to the rapid economic progress of India and Orissa.
Medical Assistance including surgical help- Mobile health camp, Cleft-lip, Palate, Burn-defects surgery etc.Scholarship for meritorious poor from the area, for higher educationDistribution of educational materials for poor school childrenVocational training for young men and women- Empowering for self employmentSustainable livelihood support program for the community- Skill development in scientific farming and animal husbandry- Entrepreneurial skill development programs for educated unemployed natives
House for Displaced Family 10 decameter sq. land to each displaced family. House in the rehabilitation colony. Modern civic amenities - road, water & power supply, school, community recreation centre, health care etc.Training and Employment Job to one nominated member of each project affected family engaged in construction work through contractors. Training and employment to one nominated member of each displaced family. Assistance for self-employment or to start own business.Special Package beyond Govt. Policy Reasonable compensation for cultivation on Govt. land such as betel vine, fruit bearing trees, prawn ponds etc. Fishing net and motorboats to those who opt self-employment Financial assistance to landless labor and betel vine workers for a reasonable period until they get wage employment in the project
www.stoposco.wordpress.com www.posco-india.com REPORT BY THE INDEPENDENT FACT FINDING TEAM ON ISSUES RELATED TO THE PROPOSED POSCO PROJECT IN JAGATSINGHPUR (ORISSA) www.wikipedia.org www.business-standard.com www.orissa.net www.facebook.com