Significance of Bastar Division Ironore deposit in the elevation ofChhattisgarh economy, physical andsocial infrastructure…
Social & economic Indicatorsdemanding real and sustainedmeans of growth @ Bastar division…
Bastar DivisionBastar division is an administrative division of Chhattisgarh state in central India. It includes the districtsof Bastar, Dantewada, Bijapur, Narayanpur and Kanker. It was created in 1999, when the larger BastarDistrict was divided into the present-day districts of Bastar, Dantewada, and Kanker. In 2000 the divisionbecame part of the newly-created state of Chhattisgarh.Of states’ 18 districts five fall in bastar division which constitute of 12.09% of total state population.Bastar Division Population Spread 1600000 1400000 1200000 1000000 800000 Series1 600000 400000 200000 0 Kanker Bastar Narayanpur Dantewada Bijapur Source: Census 2011 2001 2011 Chhattisgarh No of towns 97 182 No of villages 20308 20126 Bastar Division No of towns 9 24 No of villages 3945 3934 % % of towns in bastar division 9.28 13.19 % of villages in bastar division 19.43 19.55 While the population graph shows of high inequality in population spread, the latter one shows the marginal increase in urban cities and marginal decrease in villages. The most important is where the % of villages would have decreased, the figure has increased. That shows villages have not decreased, rather increased. No country has achieved growth and prosperity through a village-based model of development.
Majority of population survive in villages. The fluctuation in decadal growth rate can be viewedon the sidelines of high mining activity spread heading urbanization. Development in a nondeveloped area is synonymous with physical infrastructure. These physical infra of which steel isan integral one, builds economy by doubling the pace by enthralling investors due to physicalinfra. However census terms urban area which carries one lakh plus population. Does Bastarknow the real mining of Urban world?
Chhattisgarh India Economic Indicators 2009-10 2009-10 Net domestic product (at factor cost) (Rs. crore) (For State) 63297 4493743 Gross domestic product (at factor cost) (Rs. crores) (For India) Contribution of Agriculture to NSDP/GDP (%) 18.65 14.62 Contribution of Industry to NSDP/GDP (%) 31.74 20.16 Contribution of services to NSDP/GDP (%) 49.61 65.22Per capita Net State Domestic Product (factor cost) (Rs.) (State) 25835 33731 Per capita Net National Product (factor cost) (Rs) (India) NDP Growth rate (%) (State) 12.37 8 GDP Growth rate (%) (India) Chhattisgarh India Human Development Indicators 2007-08 2007-08 Human Development Index Value 0.358 0.467 Bastar is one of the most backward regions of the country. Agriculture which is the key source of survival of major population is mainly practiced for home consumption. Commercial crops are rare. Is the only hope for the improvement is the Political stability and Govt. policy measures at state only or something else? If yes, What ?
Banking on clustercompetitiveness is advisable forsustained and harmonized growth.The nature has provided “Bastar”abundant ecology (forest andagriculture plain) and world’s bestquality iron ore deposits…Minerals play a significant and crucial role in the history of mankind. During the 4th century B.C.,Kautilya understood the significance of minerals in building a nations strength. He said, "Minerals aresources of wealth", and armies can be raised on wealth and the king who has wealth and army canconquer the world. India is the worlds fourth-largest steel producer but relative to the size of its economy the countrys steel consumption is low. Economic development pushes steel consumption and Steel consumption push physical infrastructure and further strengthen the economy.
Bastar Division Competitiveness (Dark – High, Light – Low) Mining Infrastructure Agriculture Tourism Services Transportation Bio diversity Labor (Skilled – low) WaterStory of Naya RaipurLocated about 20 km east of the present capital Raipur, Naya Raipur has been designed on the lines ofMalaysia’s hi-tech capital complex at Putrajaya, outside Kuala Lumpur, and is expected to cater to theinfrastructural needs of industry and trade in the region. Naya Raipur will have a world-class conventioncentre, a five-star hotel, an IT SEZ, a gems and jewellery SEZ, a garment park, a theme residentialtownship with an 18-hole golf course, an amusement park, super specialty hospitals, commercial officespace, museum, art galleries, entertainment parks, botanical garden, a law university, an education hub,a cultural centre, malls and a sports complex. New state secretariat building is coming in Naya Raipur in8,000 hectares. (Source: Business-Standard) All elements of these which are synonymous with development; demands STEEL. If more Naya Raipur has to be created it demands more steel. Chhattisgarh has a long way to go on building its infrastructure.
Iron ore deposits of Chhattisgarhlie in ‘Bastar’ province (+65 Fe(hematite) – High Grade) …
Bastar Region (picture depicts) atchhattisgarh is the only source for Iron Oreproduce in state. The world’s best quality ofiron ore is found in Bailadila deposits ofDantewara district which NMDC had beenengaged in extracting. . Important Iron oreoccurrences of the State are iron ore(hematite) in Dantewada district, Bailadiladeposit in Dantewada district, ChhoteDongar deposit in Kanker district, Rowghat,Chargaon, Metabodeli and Hahaladdideposits in Rajnandgaon district, BoriaTibbu deposits in Dalli-Rajhara area, Durgdistrict. Bailadila-Rowghat hill ranges in thestate are considered to be one of thebiggest iron ore fields in India. Production of iron ore (quantity and value) and domestic consumption 2008-09 Chhattisgarh Production Value Domestic Consumption 29997 59064269 25631 Total 212960 285444020 126223 % of Total 14.09 20.69 20.31 2009-10 Chhattisgarh Production Value Domestic Consumption 26211 44227248 24115 Total 218553 264620052 130822 % of Total 11.99 16.71 18.43 2010-11 Chhattisgarh Production Value Domestic Consumption 29146 82675755 23869 Total 207998 375343429 126814 % of Total 14.01 22.03 18.82
State government economic survey report of 2011-12 says that 80% of population is dependent onAgriculture. Also human development report published in year 2005 talks of poverty and marginalizationof population at increasing speed due to of low value productivity in Agriculture. The same is attributedin the Annual plan 2012-13 (presentation before the planning commission) which talks of developmentchallenges and the eminent one is low value agriculture. Production of iron ore fines in last three Years So while on the name of biodiversity the 2007- 2008- 2009- 2010-11 deforestation is a 08 09 10 (Up to Dec.2010) hurdle to excavation of Chhattisgarh 17965 18925 14960 11431 Total 115396 120560 126915 86431 natural mining % of Total 15.57 15.70 11.79 13.23 resources the question is what is the measurefor running development and economic harmony for the people of bastar province who had been laidback by years? Poverty, Illiteracy, starvation has already eaten for years and so called “Tendu patta”leaves can how long feed their starving stomach?Very recently as part of balancing measures - a farm loan proposed by Govt. of Chhattisgarh of worth Rs.1700 crore and that too with one percent of interest rate for farmers can hardly feed the 45% ofChhattisgarh and 70% of Bastar province tribal population because the land itself has lost its produceand is highly segregated (in pieces).Worry? The gap between domestic demand and availability of steel is met through imports. Finished steel imports have been consistent to five and half million tones for three-four yrs. What is the need for import when the state can produce more than demand?
Kanker is poor in minerals Iron Ore quartzite and garnet minesare found in region iron and ore deposit have been found in theregion of Bhanupratappur. But mining of these minerals have notstarted till now.About 1000 Lacks ton Iron and ore deposits are verified inhahaladdi region of the Bhanupratappur Tahasil. The best qualityof this Iron and are can be utilized in the over all development ofindustries in the district. Black and white granite are found inplenty quantity in the district. Bastar (along with Naraynpur, Dantewada and Kanker) is a tribal district (70 % are tribal). The total forest area is 7112 sq Kim which is more than 75 % of the total area of the district.Dantewada is blessed with various mines and minerals.Bailadila contains one of the largest deposits of Iron Ore inthe world. The Iron content of the Ore is as high as 68%,which can easily be termed as of world class quality Ore. Bastar Division accounts for 40000 square kilometers of area which produces 2366 mn tones of iron ore which is 1/5th of iron ore deposits of country. The major area is densely covered by forests and most of these mining reserve lie in forest ranges. Deforestation (ecological policy compliance – MMDR act) and livelihood on forest produce is the key issue for mining .
Bastar Division Iron ore deposits and Reserves Reserves in million S.No. District Locality Grade Fe% tonnes Bailadila Deposit No. 1 138 60 2 23 68 3 38 68 4 108 64 5 240 68 1 Dantewara 6,7, 9, 12 27 65 8 30 64 10 204.65 68 11 200.22 68 13 317.24 65 14 17.42 61 1343.53 Chhote Dongar Deposit No. 1 0.49 64 2 2.18 65 2 Bastar 3 25.44 64-66 4 5.76 64-66 5 1.44 65 35.31 Rowghat Deposits A 8.06 62.58 B 10.8 50.29 C 55.22 57 3 Kanker D 167 60 E 14.4 52.93 F 476.45 59.62 731.93 Chargaon Deposit No. 1 18.36 60 2 3.44 60 Metabodeli 15.6 65.6 Hahaladdi 12.82 64 Ari Dongri 26 65 4 Kanker Raoghat 20.174 M.T. 60 to 68 Source: Directorate of Geology and Mining, Chhattisgarh.
However – Integrated Steelmanufacturers face TremendousChallenges… - Corruption - Stakeholder expectations - Domination and political clout of incumbent players - Naxalite and outlaw activities - Bureaucracy and slow pace of approvals ?It is estimated that demand of steel will be 220 MT by 2020 and 500 MT by 2050. The requirementof iron ore for domestic consumption alone will be 350 MT by 2020 and 900 MT by 2050. Exportquantity will be over and above this. Iron ore resources of India have been estimated to be 23.5billion tons by Hoda Committee. These targets can only be achieved if setting up of Greenfield steelplants is fast tracked. But how to move forward when concern of stakeholders list is long?
Status of Key Steel Greenfield projects at Chhattisgarh Project Proposed Progress Made/ Likely date of Capacity commissioning/ Issues on Land Acquisition, Environment / Stay Order SAIL- Bhilai Steel 7.00 MTPA December 12 – March 13 (Brownfield (3.93 mtpa expansion) exists) NMDC – Bastar Steel Plant 3.0 MTPA 90% of the land acquired. Date of completion – 42 months of “Zero date” i.e. receipt of all statutory clearance/approvals and placement of orders for major technological packages. Total land acquired 1,948 acres. 63 acres fell in forest areas. Tata Steel – Bastar Steel Plant 5.5 MTPA 2044 ha (5070 acres) of land. Land acquisition problem. Capacity to be achieved by FY 2015. Twice renewal of MoU. Essar Steel – Bastar Steel plant 3.2 MTPA Applied for 608.33 Ha (1509 acres) (Private land – 393.21 Ha & govt. land – 215.15 Ha) Private land passed by the authorities. MoU renewal under consideration. Visa Steel – Rajgarh 2.5 MTPA Total Land 1020 acres. Approx 270 acres land is in possession & further 750 acres land acquisition is under progress. Environmental clearance accorded by MoEF. Likely date of completion of current capacity under execution – April 2013. Jindal Steel and Power 3 MTPA Operational. (Brownfield expansion) Production of iron ore in the public and private sector 2010-11 Sector 2007-08 2008-09 2009-10 (Up to Sept) Chhattisgarh Private 154 250 518 128 Public 30844 29747 25959 13904 India Private 146733 148214 159387 68980 Public 66519 64746 59253 27968 Total (India) 213252 212960 218640 96948 % of total @ private 0.10 0.17 0.32 0.19 % of total @ public 46.37 45.94 43.81 49.71Graph depicts the clear monopoly of public sector units and the non presence of competitiveenvironment for Iron ore produce.
Naxalism: A Major Bottleneck of MiningHalf of the Chhattisgarhs 18 districts have come under the category of worst Naxal-infested districtsenabling it to be covered under Centres security-related expenditure (SRE) scheme. Adequate protection of mining operations and people therein is the sole responsibility of Govt. and people. If it fails to do so the objective of socio-economic harmony can not be met. However, the steel cluster has a hope that as the economic prosperity takes over the poverty, starvation and unemployment, sooner or later; the people alone would be the guardian of protecting themselves and mining fields from moist operation.. Also needless to say that people engaged in moist operation will also move forward to join the main stream as the means of personal development would have been addressed by the very steel cluster. • From January to September 2010 there have been 134 encounters between Maoists and security forces in which 160 security personnel have been killed in Chhattisgarh. • Mines on target of Maoists in Chhattisgarh • CPI-Maoist cadres have stopped work of 300 roads which were to be constructed under the Pradhan Mantri Gram Sadak Yojana (PMGSY) in the Bastar region • States Police department facing shortage of weapons & Police Personnel • Half of Chhattisgarhs diamond belt in Maoist strongholds
The biggest bottleneck forGovernment as well as SteelManufacturers is Land Acquisition.Availability of land records, tribaland forested land, R&Rprocedures add to acquisitiondelays:Forest Land: Involvement of multiple state and central government agencies in forest landacquisition leading to inordinate procedural delay.Tenancy Land: There are no proper Rights of Records not being available with SGs foridentification of ownership of land, along with lack of support from local administration and localgovernments.State government, as the custodian of the mineral resource, has failed to help these investors byexpediting their applications on the basis of a fair and transparent implementation of the guidelinesoutlined in the MMDR Act. State government has continued to sit on the applications for years thusignoring the development of their people and economy. The point is they can sit based on the positionalpower they bear but as long as economic viability of the project is there the investor is there, which theyshould mind for. The very negligence leaves a bad impression on potential investor sentiments andmotivation. Chhattisgarh government is vying for potential investment in services sector but has beenunable to locate them. Services will only grow when there is skilled labor, infrastructure and governmentprotection.
A matter of concern for Bastar division landThe sale price of Iron ore in India varies between Rs. 2500-3500 per tonne. The cost for mining per tonneof iron ore comes to be around Rs. 500. While this drives the motivation of large players, the bettingconcern of land acquisition problem for steel plant does not end here… Company Capacity addition Land Required NMDC 3.0 MTPA 1948 acres Tata Steel 5.5 MTPA 5070 acres Essar steel 3.2 MTPA 1509 acres Visa Steel 2.5 MTPA 1020 acres Total 14.2 MTPA 9547 acresAccording to above figure obvious info is VISA steel has low land requirement. So considering the base ofVisa steel .5 MTPA of steel plant demands 204 acres of land. Based on the same hypothesis the scenariois as follows: Company Capacity Land Difference (%) NMDC 3.0 MTPA 408X3 = 1224 acres 70.98 Tata Steel 5.5 MTPA 408X5.5 = 2244 acres 277.06 Essar Steel 3.2 MTPA 408X3.2 = 1305.6 acres 19.94 Visa Steel 2.5 MTPA 408X2.5 = 1020 acres 0It is two way round. Government itself is not liable for the delay; the delay is because of greed toacquire more land. It’s a serious concern. Isn’t it? A framework is therefore needed to control themechanism of land which halts other eminent players in expansion, as the motivation thrives amongpeople from one example to another who contimues to protest the steel manufacturers. So if TataSteel project land acquisition is having a problem because of huge land mass to operate the otherplayer will face the same consequences too, which is obvious now…
Govt. must promote integratedplayers (steel + mining) above 2MTPA and cut aside obstructions toachieve social, environmental andeconomic balance…Iron ore mining in India is only 10 per cent by the big players. The rest is all with the unorganized andsmall players. The same is in context with steel manufacturers. Sponge iron producers in Chhattisgarhare in large size which gain iron ore from NMDC. The steel makers in the state purchase 3 million tonnesof iron ore per annum from NMDC.As per State Investment Promotion Board, Chhattisgarh, generally units up to 50 TPD capacity areclassified as “Small” (investment below Rs 5 crore) and units up to 100 TPD capacity are classified as“medium” (investment below Rs 10 crore). Based on this criteria 31 units are covered under “small &medium scale” to whom NMDC is supplying iron ore. According to 2009-10 estimates these 31 unitsconsumed 1.99 Lakh tones of iron ore by NMDC. There is no doubt that five and ten crore investmentfirm will not do efficient conversion of iron ore because of lack of technology and skills required. Thisresults in also huge proportion of air pollution causing environmental degradation. It is not that they arenot bothered of but their financial liberty and project viability does not allow for the same.Details of iron ore supplied by NMDC to these Industries during past three years:Type Nos. 2007-08 2008-09 2009-10Small Scale 10 0.31 0.22 0.03Medium Scale 21 1.83 2.07 1.96Total (S+M) 31 2.14 2.29 1.99
How beneficial could be theseGreenfield projects at groundlevel? Environmental Provide strength Reduce poverty and balances will be among people to fight bring tribal population maintained as part of against Naxalism to in mainframe further CSR, balancing socio- protect their cutting Govt. environ harmony livelihood expenditure Provide Boost agriculture infrastructure productivity (Roads, drinking (financial liberty) water, schools, and cut Govt home etc.) as part of expenditure CSR and R&R Utilization of workforce in mining and steel manufacturing
The steel production has toincrease at a fast rate to keeppace with the GDP growth rate of9% being projected in the comingyears. In order to transform thisfledgling steel industry into aflourishing and competitive one,a concerted step aimed atachieving competitiveness is notan option but an urgent need ofthe hour…
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