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Mar 06, 2007

Naxal issue discussed in Rajya Sabha

Amidst a walkout by the Opposition NDA, Home Minister Shivraj Patil informed the Rajya Sabha on Tuesday that the central government had put in place a mechanism for monitoring Naxal activities to evolve strategies to counter and closely address the problem.

He, however, stressed upon the need for "greater, concerted and cooperative" efforts between the states inter-se as well as between the Centre and states to achieve results that are more acceptable.

In response to queries raised by Chairman Bhairon Singh Shekhawat, the Home Minister said that deceased Lok Sabha member Sunil Kumar Mahato had found his security arrangements to be "adequate". He had been placed under a "Y" category security and 2 PSOs along-with five commandoes had been attached to him, Patil said in a suo-moto statement on the attack on the JMM leader on March 4. Information received from the Jharkhand government, he said, was that Mahato had not informed the district authorities about his programme at village Baguria in East Singhbhum district.

BJP leader Sushma Swaraj — alleging that the Minister's response was of a "casual nature" — had earlier led the NDA walkout, shortly after the Minister had begun responding to clarifications from members on the incident.

Alleging that the Minister's response to issues and concerns raised earlier by members was of a "casual nature", NDA members led by BJP leader Sushma Swaraj had staged a walkout.

Responding to concerns expressed by members in the 90-minute long discussion, Patil said that it was for the state governments to take a call on the issue of providing enhanced security cover to MPs.

On police modernisation schemes for Jharkhand, he said that Rs 182.72 crore had been provided to the state in the last six years while, during the current year, a special grant of Rs 15 crore had been provided to the state for purchase of telecommunications, weaponry and de-mining equipment. Jharkhand has been provided Rs 20.92 crore under Security Related Expenditure (SRE) scheme until date, he added.

The Naxal problem is of a serious nature, but combined efforts of the state and central governments have shown some levels of containment, Patil said, adding that Andhra Pradesh had achieved noteworthy success in controlling the problem through specials forces called the Greyhounds. In the country as a whole, he said, the Naxal incidents declined from 1608 in 2005 to 1509 in 2006 - signifying a 6.15 per cent decline.

Earlier in the discussion, NDA members demanded imposition of President's rule in Jharkhand. Former Finance Minister Yashwant Sinha desired to know why the Greyhounds model of Andhra Pradesh had not been replicated in other Naxal-affected states, while suggesting that armed helicopters should be provided to all "red corridor" states. Ravi Shankar Prasad — another ex-union minister — alleged a loot of government funds in the name of Naxalism, while elaborating that officials and others were actually misusing funds allocated for strengthening security. CPI(M) leader Brinda Karath wanted the government to conduct a review of the functioning of the intelligence gathering agencies.

http://www.hindustantimes.com/news/181_1945993,0008.htm

CPI-M officially confirms death sentence against Mahato

The CPI-Maoists on Tuesday officially confirmed that it had carried out a death sentence against Jamshedpur MP, Sunil Mahato last Sunday as per the dictates of its joint zonal committee overseeing operations along the Bankura-Purulia-West Midnapore-Ghatshila region.

The confirmation of Naxal involvement in the gruesome murder of the MP and three others on Sunday came in the form of posters pasted in Hariyan-Kuriyan villages in Gurabandha on Tuesday. "We've taken the revenge for the Lango lynching of our fellow cadres by killing the MP," the posters claimed.

The action was ratified by the Central Committee as per the pamphlets issued in the Ghatshila areas of Jamshedpur on Tuesday.

The CPI-Maoist Central Committee has also authorised targeted attacks on politicians, police officials known to be stalling its own growth in the areas under command or countering the growth of the organisation in various ways.

In this case, Mahato was seen as the man mobilising the Nagrik Suraksha Samity set up by the state in Ghatshila-Lango areas and responsible for the deaths of squad members in the past.The operation was executed by the urban guerilla squad led by Deepak who had specially come from Andhra Pradesh.

"Area commander Madan Mahato, Gurupado Kisku and women ultras Reena Mondal alias Kalpana Maity, Jamuna alias Jayanti, Jagori Baske and Khepi Singh appeared to have played the lead role in executing the MP assassination operation," intelligence sources claimed.

"The central committee had come out with a detailed 4-page action plan and guideline last year itself in this regard. They started with West Bengal by carrying out a series of successful attacks against influential CPM politicians. Now the focus has shifted to Jharkhand," sources claimed.

They further reminded of the intelligence input to the state quoting zonal commander Durga alias Dijen who had said recently that their action would now shift from Bengal to Jharkhand-specifically around MGM-Dalma, Chakulia, Ghatshila and Dhalbhumgarh areas.

Police officials said, that the recently concluded national conclave of the CPI (Maoists), held somewhere along the Jharkhand-West Bengal-Orissa border between January 11 and February 19, had resolved to turn the People's Liberation Guerilla Army (PLGA) into People's Liberation Army (PLA).

The conclave, which re-elected Ganapati as the chairman of the central committee (supreme leader) had also reportedly decided to turn the guerilla zone under their control into permanent base.

"No more hit and run. Now time has come to spread in the towns and identify specific targets, hit them precisely and with impunity," sources quoted Ganapati as saying in the resolution passed during the conclave attended by 100 top naxalite leaders from 16 states.

"Mahato was murdered along with his two bodyguards and a fellow party leader from point-blank range after stopping the former on the pretext of garlanding him. This only points to the cold-blooded planning and execution that the resolution talks about," a senior police official said.

He further pointed out that the PO too was neither far from the town nor from the easily accessible road. "No hide and seek, no hit and run in the jungles or hilly terrains. It was out in the open in full public view," reminded the official.

http://www.hindustantimes.com/news/181_1945776,000900030009.htm

India's Wild West

The murder of JMM MP Sunil Mahato is a gruesome reminder of the state of affairs in Jharkhand. Though there are competing versions regarding the motive behind the murder, Maoists are being blamed for the outrage.

The killing is not a singular case of vendetta but a continuation of the political violence that has engulfed large parts of central India.

What is unravelling in the region is a primitive form of capital accumulation. Sections of the Indian state, including the bureaucracy and police, businesses, local mafias, and Maoists are engrossed in a struggle to corner natural resources including land and minerals and funds marked for development.

The violence is both external and internal. Much of this region is rich in mineral wealth and is being opened up for industrialisation.

The entry of modern political and economic institutions, in their crudest possible forms, are transforming social relations.

Old ways of living are forced to make way for private property and modern markets. In the absence of an enlightened political leader-ship, the transition from a largely tribal society to a market economy is turning out to be violent and painful. Corruption and the lack of a progressive political vision have destroyed the legitimacy of the leadership that spearheaded the struggle for statehood.

Those who claimed to represent dissent, especially Maoists, have not been immune to criminalisation. A parallel to the state of affairs in Jharkhand, or parts of Chhattisgarh and Andhra Pradesh, is perhaps to be found in America's Wild West of a century and half ago when the gun dictated the law.

There are no easy or quick solutions to the problem. Beefing up security or pumping in 'funds for development' could even compound the mess.

Worse would be if the Jharkhand government copies the Salwa Judum initiative in Chhattisgarh. Salwa Judum was a state initiative to arm villagers to fight Maoists on the state's behalf.

The result has been disastrous. Villages have emptied out into refugee camps and a state of siege pervades the countryside.

The Forests Rights Bill which was recently passed by Parliament could facilitate a turnaround in tribal villages. The Bill would make it possible for tribals to acquire property rights and control over forest and mineral wealth.

Empowerment of local communities would make it possible for greater transparency and accountability in the use of development funds.

Development has to go beyond politicians, contractors and Maoists for people to have a stake in it.

http://timesofindia.indiatimes.com/OPINION/Editorial/Indias_Wild_West/articleshow
/1728933.cms

India's Internal Terror Troubles

While Kashmir and al-Qaeda-linked terrorism garner front-page play around the world, India's own internal terrorism problem tends to be off the radar of most American news outlets—or, at best, warranting a postage-stamp-sized wire story (NYT) buried at the bottom of an inside page. Yet terrorism-related deaths in the contested territory of Jammu and Kashmir dropped threefold since 2002, according to the South Asia Terrorism Portal report. Violence related to Maoist extremism in India, however, defies New Delhi's counterterrorism efforts. In April 2006, Prime Minister Manmohan Singh called the leftist insurgency "the single biggest internal security challenge ever faced by our country." A new Backgrounder on terrorism in India explores the Maoist insurgency.

Maoist extremists, known as Naxalites for the West Bengali village of Naxalbari where they held their first revolt in 1967, emerged as a renewed militant force in 2004 when various factions aligned in a loose coalition. Bolstered by advances of Maoists in Nepal, the Naxalites are increasingly active in a swath of territory called the " red corridor" running across thirteen states in central and south India.

A report by the New Delhi-based Asian Center for Human Rights documenting the Naxalite rise from the "periphery to mainstream" (PDF) in 2006 estimates the insurgency has as many as ten thousand recruits. Chhattisgarh, an impoverished state where the extremists take refuge in deep forests and reportedly set up local councils that collect taxes from the population, experienced the highest rate of Naxalite-related violence last year. Nearly four hundred people died in clashes between Maoist forces and a controversial paramilitary group called Salwa Judum caused the forcible displacement of more than 43,700 people. The Guardian reports that New Delhi backs the militia Salwa Judum in a struggle over Chhattisgarh's mineral-rich soil.

The Naxalites' growing power also stems from the failure of India's economic boom to trickle-down to the rural, impoverished areas where the Maoists make inroads. A special report by the Economist faults the Indian state with leaving the Naxalite problem to local policing and failing to come up with a consistent national policy. The article says the insurgency attacks India "where it is weakest: in delivering basic government services to those who need them most." The New Delhi-based Institute of Peace and Conflict Studies echoes this sentiment in a report on the leftists that outlines rampant underdevelopment (PDF) in troubled Chhattisgarh: Fewer than half the state's children enroll in primary school, 40 percent of the population lives in poverty, and more than two-thirds of households have no electricity.

The Maoists profess to defend the rights of the impoverished, but their war on the Indian state involves extortion, forcible recruitment, and attacks using homemade bombs and light arms, according to Human Rights Watch. Although the insurgency remains rural in nature, the South Asia Terrorism Portal reports the Naxalites are setting their sights on Indian cities, with plans to recruit students and the " urban unemployed."

http://www.cfr.org/publication/12771/indias_internal_terror_troubles.html?bread
crumb=%2Fpublication%2Fpublication_list%3Ftype%3Ddaily_analysis

Three new IITs during 11th Plan

New Delhi, March 6 (PTI): The government has decided to set up three new Indian Institutes of Technology (IITs) during 11th Five Year Plan, Rajya Sabha was informed today.

In a reply, the Minister of State for Human Resource Development D Purandeswari said the premier institutes will be set up in Bihar in East, Rajasthan in West and Andhra Pradesh in South.

The minister said the government had received a proposal from Kerala to set up an IIT there but Scientific Advisory Committee to the Prime Minister recommended that these should be set up in three states in separate regions.

In another reply, the minister said the government is taking very seriously the reported incidents of suicides at various IITs.

Among the several steps taken by the IIT authorities to check this trend are counselling, holding seminars, creation of helplines and modification of examination schemes so that students do not feel overstressed during the examinations.

The performance of students is also being monitored every semester and mechanisms are being set up so that the families are well informed about the students' performance, the minister said.

http://www.hindu.com/thehindu/holnus/002200703061451.htm

Bihar's 'first' Economic Survey Report tabled

PATNA: For the first time in the annals of Bihar legislature, the state government on Tuesday tabled the Status Report on Economic Survey of Bihar 2006-07 in the Legislative Assembly.

Never before did any state government come out with the survey document which contains factual information about the state's economy.

"Such a paper would also pave way for a public dialogue for attaining the goal of good governance," deputy CM and state finance minister Sushil K Modi said, adding it would now onwards be an annual exercise ahead of the presentation of state budget.

The 2006-07 report indicates Bihar has lagged behind other states on all the developmental indices. The state ranks at the bottom with respect to Human Development Indicator (HDI) with the HDI for Bihar being about 20 per cent lower than the national HDI.

The survey noted the market size in Bihar is estimated to be worth Rs 1,03,600 crore or 4.8 per cent of the country's market size. It has a lower CD ratio than the national average, and despite some improvement it is still one of the lowest in the country. A highly disadvantaged economy is a general phenomenon in Bihar although it is not equally present in all the districts, the report said. The per capita income varies widely between Rs 6,958 (in Patna) to Rs 2,219 (in Sheohar).

Having an estimated 90.2 million population (83 million as per 2001 census), the state has 536.91 lakh people living below poverty line (BPL). This when the number of BPL families has reduced at the national level with the national BPL percentage being 19.34 only.

The state's total debt, about Rs 42,000 crore, constitutes 71 per cent of its Gross State Domestic Product (GSDP). The revenue account had a deficit during the three years between 2001-02 and 2003-04, implying that the funds meant for capital expenditure had to be diverted to the revenue account. However, this deficit turned into surplus from 2004-05 onwards.

Similarly, the Gross Fiscal Deficit (GFD) has been consistently high in recent years. In recent years, the state government's internal market borrowings financed its GFD apart from the Public Accounts receipts. The state's development expenditure constituted an average of about 60 per cent of its total expenditure, but its share has declined from 67 per cent in 2001-02 to 56 per cent in 2006-07. The state's own revenue, both tax and non-tax, barely meets 20 per cent of its total expenditure and the rest has to come from the Centre.

The state has a workforce of 4,35,394 as against the sanctioned strength of 5,71,722. One fifth are grade IV and three fourth are grade III employees. The salary and pension constitute the two most important expenditure items. The total expenditure on salary and allowances of these employees was Rs 5, 783.35 crore which is projected to go up to Rs 7,800 crore during 2006-07. The government spends 46 per cent of its total resources on salary and pension alone.

Interestingly, Bihar is among the best paymasters. The average annual salary of a state government employee is Rs 1.8 lakh as against the average Rs 1.21 lakh of a Central government employee. Even "developed" states in the country pay less than what Bihar pays, the report noted.

http://timesofindia.indiatimes.com/NEWS/Cities/Patna/Bihars_first_Economic_
Survey_Report_tabled/articleshow/1729260.cms

Digha goes geo-tech

MIDNAPORE, March 6: The Digha-Sankarpur Development Authority (DSDA) is all set to rope in a new technology for protection of Digha and Sankarpur coasts in Midnapore East, on the recommendation of the National Monitoring Committee for Shore Protection, a Digha-Sankarpur Development Authority spokesman said today.
The 10-member high-profile committee, headed by the renowned earth scientist, Prof Anandadeb Mukhopadhyay, who is also the Digha-Sankarpur Development Authority chairman, recommended that walls made of geo-textile tubes filled with sands will be used to replace the traditional concrete walls for the purpose as "boulder-technology has now become obsolete".
Geo-textile tubes have been found to be effective in checking erosion in different parts of the country already, Prof Mukhopadhyay said.
The committee comprises scientists from Madras IIT, CWPRS, Pune, National Institute of Oceanography, Goa, School of Oceanography, Jadavpur University and the state irrigation secretary and chief engineer.
In the first phase, geo-textile tubes will be installed on 1 km stretch of Sankarpur coast. the work will begin on 18 March in presence of the expert members of the committee.
Later, the experts will discuss the matter at a meeting in Digha during the day. The work is expected to be completed in two months.
Judging its effects in arresting erosion at Sankarpur, the geo-textile tubes technology will be used in Old Digha.
Presently, however, repair-work is on at the Digha coast. But the work is being impeded owing to dearth of black-stones which are supplied from Orissa.
The committee submitted a Rs 32 crore-project to the state government for permanent protection of Digha and Sankarpur coasts.
So far, Rs 8 crore have been allotted for the work. But no sustainable development of Digha or tourism was possible unless science and technology is applied to stop erosion, said Prof Mukhopadhyay.
The Digha-Sankarpur Development Authority chairman is perturbed over mushrooming construction of hotels at Mandarmoni coast in Ramnagar with the approval of the local panchayat violating the vulnerable Coastal Regulating Zone Act.
"The erosion in Mandarmoni will be ten times than that in Digha and Sankarpur unless the hotels are demolished right now," warned Prof Mukhopadhyay and he suggested that Mandarmoni be brought under the purview of the Digha-Sankarpur Development Authority for its survival.
However, the West Bengal Pollution Control Board last year directed that six hotels at Mandarmoni be demolished . The electricity supply to the hotels was also disconnected.
But still undaunted, the hoteliers appealed to the Pollution Control Appeallate Authority challenging the order of the West Bengal Pollution Control Board.
But after an inspection to the site the appellate authority team opined in favour of demolition and asked the panchayat and the police to carry out their directive in two months failing which the hoteliers will have to cough up Rs 1,000 daily as fine to the WBPCB. A high-power committee, headed Mr PN Roy, member WBPCB, has been constituted by the appellate authority to supervise the demolition work.
The committee will comprise WBPCB law officer, representatives from local panchayat and the Coastal Regulatory Zone Management Authority, a DSP and a deputy magistrate

http://www.thestatesman.net/page.news.php?clid=23&theme=&usrsess=1&id=149028

Dozens hurt in Orissa in clash over POSCO plant

BHUBANESWAR, India (Reuters) - More than 50 people have been injured in eastern India in clashes between supporters and opponents of a steel plant planned by South Korean firm POSCO, witnesses and police said on Tuesday.

The violence over the past three days has erupted in Jagatsinghpur district in Orissa state where the $12-billion plant, India's single largest foreign direct investment, will be built. It is expected to start production by 2010.

A split between villagers who believe the plant will bring jobs and development and those who say that some 20,000 people will be displaced sparked this week's violence.

Ten people were hurt in the latest clashes on Tuesday as police reinforcements were sent to Jagatsinghpur, 100 km east of Bhubaneswar, capital of the coastal state.

"We are still trying to diffuse the situation and hope peace will prevail," said police officer Yeshwant Kumar Jethwa.

The latest protests were triggered by the state government's attempt to hand over land to POSCO for the plant.

But POSCO, one of the world's largest steel makers, said last month it had not been able to secure enough land for the project.

The company requires 4,000 acres but has managed to get only 1,135 acres, with village groups putting up barricades and refusing to vacate their land.

"We will start a public contact programme very soon to persuade the villagers to support the project," a spokesman for POSCO said in Bhubaneswar.

The Orissa government says only 500 families will be affected by the land transfer and thousands of jobs created in a largely poor area.

Easy availability of raw materials such as iron ore has attracted steel majors like POSCO to Orissa.

http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2
007-03-06T192205Z_01_NOOTR_RTRJONC_0_India-290154-1.xml&archived=False

Coming up: Fortune Tower II

BHUBANESWAR: With more IT companies scouting for space and horizontal growth of the temple city is no more possible, the Information Technology Department has planned a second Fortune tower.

A seven-acre land between Satyam Development Centre and Fortune Tower has been identified for the proposed Fortune Tower-II which will be 17 storeys.

The Fortune Tower-II will have two lakh square feet usable area apart from parking slot and other recreational facilities. Construction of the building has been handed over to the State-owned Infrastructure Development Corporation of Orissa Limited (IDCO), a senior officer of the IT Department told this paper.

According to preliminary estimate, the Fortune Tower-II will cost about Rs 20 crore. The IT Department has already placed Rs 3 crore with IDCO for construction of the tower. IDCO has been asked to give special emphasis on the architectural aspect of the building.

IT majors like Tata Consultancy Services (TCS) has acquired 36,000 sq.ft in Fortune Tower for its development centre and 20 percent extra space for front office staff and managers.

A number of IT companies are approaching the Government for land within the city limits to set up their facilities. With no space in the Infocity, the Government has acquired 154 acres at Gothapatna to develop another IT hub. About 24 acres of land from Infocity-II has been allotted for an International Institute of Information Technology (IIIT).

The Government has also allotted one wing of the Toshali Plaza in Satyanagar to the IT Department for IT purpose.

While another wing of the massive building which is lying unutilised since its completion will be housing the office of Information Commissioner, the General Administration Department has already instructed all the administrative departments to shift their offices working from rented building in the city to Toshali Plaza.

Although Toshali Plaza located almost in the heart of the city, this is not suitable for IT companies keen to set up their facilities because of lack of parking space. Besides, as the approach roads to the Plaza are too narrow, it will create a lot of inconvenience to the local residents, the officer admits.

http://www.newindpress.com/NewsItems.asp?ID=IEQ20070306033801&Page=Q&Title=ORISSA&Topic=0

The Ugly Face Of BALCO Privatisation

THE privatisation of BALCO has been the most bizarre instance of crony capitalism in the post 1991 era of structural reforms followed by successive Indian governments. BALCO was the foremost public sector run integrated aluminum producer in the country prior to the selling of 51 percent of its shares and transfer of its management to a strategic partner, M/s Sterlite Industry in 2001 during the NDA regime. This strategic sale was opposed tooth and nail by the BALCO trade unions and the Left parties. There were serious charges of gross undervaluation of assets, collusive bidding leading to the sale of prime public assets at a throwaway price to M/s Sterlite, which became a subsidiary of M/s Vedanta Resources, a London stock exchange listed company. The 7,000 strong workforce put up a stiff resistance through a continuous strike for 67 days after the sale of BALCO, which, apart from highlighting the shady deal, symbolised their genuine apprehensions about their job security, sustenance of existing terms and conditions of work as well as the future of local development in the backward area of Korba in Chhattisgarh where BALCO is located.

Some of these concerns are addressed in a study titled "Impact of Privatisation on Labour: A study of BALCO Disinvestment" conducted by Dr. Babu P Remesh for the V.V.Giri National Labour Institute, an autonomous body under the ministry of Labour, government of India. The study examines the impact of privatisation on labour, employment and livelihood aspects of workers and worker communities. This is the first time that any such study has been made by a reputed institution under the aegis of the government of India.

In August 2006, CAG report no. 17 of 2006 affirmed in no uncertain terms that BALCO was indeed grossly undervalued and now comes this well documented study report from VVG NLI reconfirming the torrent of complaints from thousands of suffering employees of BALCO about gross violations of labour related clauses of the shareholders agreement between the government and Sterlite.

The study was based on an analysis of both primary and secondary data. The broader contextualisation of the disinvestment of BALCO was attempted through a detailed analysis of the available secondary information, and the material available from the department of disinvestments, government of India. Subsequently, the field work of the study was carried out in and around BALCO Nagar, Korba, during February – July 2005. The following sections of the report substantiate the charges of gross violation of labour related clauses of share holders agreement in letter and spirit.

ISSUES RELATED TO VRS – OPTIONAL OR IMPOSED?

The report says:

"From detailed interviews with the VRS optees, it was evident that various modes of coercion were engaged in implementing the VRS agenda by the new management. Many of the respondents felt that they were forcefully dragged into the scheme, though there was no open or direct threat from the management to accept the VRS. A commonly used methodology was to prepare the workers to accept the VRS by creating ambiguities and uncertainties. According to some of the respondents, prior to the introduction of each VRS offer, the management was resorting to many indirect pressurisation tactics at workplace, which forced the workers to seriously think of leaving their job, whenever a suitable situation comes.

An important strategy adopted by management was to humiliate the workers by directly attacking their self-esteem and questioning their loyalty to the firm. Many of the respondents suggested that one of the major considerations while contemplating VRS was the demoralisation and trauma that they had experienced at the workplace during the post-disinvestment period. It was widely reported that Sterlite appointed some youngsters, who were given 'huge' salaries and positions, bypassing all the existing norms in recruitment. The major qualification for these managerial staff was their proximity to Sterlite authorities".

DEFERRED PAYMENT – A CLEAR VIOLATION OF SHAREHOLDERS AGREEMENT

"A major reason for dissatisfaction of the VRS beneficiaries was the arbitrary decision of the management to follow a deferred payment system, whereas the VRS compensation amount is paid only in five installments with a gap of 6 months between each payment. This act of the management is a departure from the standard procedure, as noted earlier by the FFC. Many of the retirees cited that this deferment of payment had created lots of problems in future household planning. Instances were cited where the retirees had to find out other sources of finance for certain already committed heads of expenditure, in anticipation of the realisation of the VRS amount in single payment. These include: completion of construction/renovation of houses and marriage of daughters, following pre-committed obligations. It was also widely complained that while payment of ex-gratia was made in five installments, all payable amounts and recoveries from the workers to the firm were deducted from the first installment itself. Many of the retirees as well as trade unionists functioning in BALCO accused that while the workmen were given their dues in five installments, the ex-gratia to the company's executives was paid in one go. It was also cited that the management had deducted a sum from their VRS amount, to recover the advance payment made to them at the time of resuming duties after the 67 days' strike, following the direction of the apex court".

ON POST VRS DUES

"More than 80 per cent of the VRS optees complained that they did not receive the VRS amount immediately and had to wait for one-three months or even more. Many of the retirees had really tough times approaching the concerned officers repeatedly and requesting to release their VRS dues. It was generally felt that the management had not shown much interest in ensuring the timely payment of VRS amount and at times the retirees even had to bribe the concerned staff, the amount of which was reported to vary from Rs. 100 to Rs. 2000".

IMPLICATION ON LOCAL LEVEL DEVELOPMENT

The wider impact of privatisation and VRS on the community and service providers to the employees, as well as the local development of the area, was also studied in detail. The report elaborates the following on this issue:

"Another major concern that was addressed in the study was the impact of privatisation on the development of the locality – i.e., BALCO Nagar and the villages around it. It was anticipated that the shift of management from the public sector to a private strategic partner may lead to certain changes in the approach of the management in addressing issues related to local level development. This aspect assumes added importance, as all the public sector undertakings set up in backward and developing regions (such as Korba) were specially known for their concern for regional development in terms of provision of employment to local people, creation and provision of basic amenities and services free of cost or at moderate / subsidised rates (which include, water, sanitation, electricity, creation of roads and so on). In this line, BALCO, before the disinvestment, had a commendable track record of contributing towards local development. A considerable share of the workforce in the company was inducted from local people."

After privatisation, the scenario changed completely, as the report points out:

" They pointed out the case of a new unit, which has been launched under the aegis of Vedanta, a sister concern of BALCO, where a majority of the workers inducted so far are non-locals. They also cited that the presence of workers from Chattisgarh is minimal among the contract workers involved in this project as well as in the other construction ventures in the locality. In the construction sites, the contractors mostly engage migrant labour. The contractors are getting most of the workers from other states such as Jharkhand, Orissa, Bihar, West Bengal and so on. They recounted that during earlier times, around 60-70 per cent of the contract workers were selected from local areas, though the contractors were often outsiders. Now, both the contractors and manual workers are outsiders".

"The two schools located inside BALCO Nagar had been the major educational institutions in the area, apart from a few government primary schools. Due to the subsidised fee structure and other benefits available to the mostly within the BALCO employees, the enrolment in these schools was mostly from within the BALCO community. Of late, due to the cumulative effect of several factors, there is a visible decline in the school enrolment rates. In the light of this development, the new management closed the junior wing of the school functioning within BALCO Nagar (in 2004) and integrated the remaining students and teachers to the Main School. However, it was pointed out as really painful by many of the respondents that now the company is using the junior school building as a warehouse/godown."

As a worker reacted: "They (the new management) have converted it as a godown. It's not because they don't have any other building or space to store the gunny bags. It is just to show us that this is what they think about the education of our offsprings and the development of this locality."

"The local people increasingly feel that their township has become more alien to them. The schools are unaffordable and getting closed; the hospitals are not meant for local people; even entry of locals into the BALCO township area for vending or petty business purpose are highly monitored and scrutinised. The people also believe that the new management has no interest in maintaining the green belt in the region and upgrading the public utility services in the region, though development activities are being carried out for private use of the company on emergency basis."

The present study by Dr. Babu P. Remesh has unmasked the ugly face of privatisation of the public sector undertakings as a whole and BALCO in particular. The report itself is a document which clearly exposes that M/s Sterlite and its present holding company, M/s Vedanta have flagrantly violated all labour clauses of the Shareholders Agreement in letter and spirit. This is a breach of the contract on which the unholy deal was finalised by the NDA government. Does the UPA government possess the courage to cancel the deal with Sri P.Chidambaram, the erstwhile Director in M/s Vedanta Resources at the helm of its Cabinet?

More such studies should be conducted of the other companies which were privatised during the NDA regime, like the Modern Foods, Centaur Hotels, VSNL, Hindustan Teleprinters, etc. so that the social and economic costs of privatisation are revealed in all their stark and brutal reality.

http://pd.cpim.org/2007/0304/03112007_dipankar.htm

Duty holds up ore exports from east zone

BHUBANESWAR: Iron ore exports from Paradip, Haldia and Vizag have come to a grinding halt from Thursday following the imposition of Rs 300-per-tonne export duty, industry sources said. All the exporters of iron ore have stopped their operation in Orissa, Jharkhand and Andhra Pradesh and have cancelled their ship bookings.

According to information available here, leading exporters like SL Mining, SK Sarawugei, KN Ram, MR Mining, Bagadiya Brothers, Sesa Goa, Core Minerals and Taurian Iron & Steel have cancelled ship bookings in the wake of the Union Budget 2007-08 imposing export duty of Rs 300 per tonne on iron ore and concentrate of all sorts.

Rungta Mines and Sara International, which were engaged in loading iron ore in two ships at Paradip, were the first victims of the new export duty on iron ore export by coughing up Rs 75 lakh and Rs 1 crore respectively. Both the companies had no option but to pay the duties as the ships had already called at the port, source said.

In a letter to finance minister P Chidambaram, the Eastern Zone Mining Association [EZMA] has sought immediate withdrawal of export duty levied on iron ore fines of all grades. "What we understand that Hoda Committee had recommended imposition of duty on +65% iron ore lumps and not on iron ore fines as there is no domestic demand within the country. And moreover, any imposition of export duty on iron ore fines will have a detrimental effect as the entire industry will come to a grinding halt," the letter said.

The EZMA has also made it clear that as and when the demand for iron ore fines would go up in the domestic market, the members would discontinue exports and sell the fines in the country.

Iron ore come in two forms — iron ore lumps (calibrated ore) and iron ore fines. Both the forms of iron ore are produced together. Out of every 100 tonnes of iron ore produced, 60 tonnes are fines and 40 tonnes are iron ore lumps, which are used by sponge iron and pig iron industry.

No other steel makers in the eastern India other than Steel Authority of India and Tata Steel utilise fines. Both the steel majors have captive mines. Even they are unable to utilise all the fines generated in their mines. Incidentally, SAIL alone has an accumulated stock of 80 million tonnes of fines, which is creating pollution problems. SAIL periodically sells the fines through traders.

"It is a compulsion for us to export iron ore fines as there is no domestic demand for fines.. Moreover, an imposition of Rs 300 per tonne export duty will make all our exports of iron ore fines unviable as the logistic cost in the eastern sector is very high and profit margin is very low in export of fines, contrary to what has been propagated by the steel lobby," the letter said.

Exporters said they get only $2 [ about Rs 100] per mt and export duty of Rs 300 makes the iron ore exports unviable. Each year, about 20 million tonnes of iron ore is exported from the ports in the eastern zone, fetching the country foreign exchange worth Rs 5,000 crore.

Of late, there has been a spurt in economic activity in the hinterland of Orissa and Jharkhand largely due to mining activities. More than one crore people are directly or indirectly involved with the mining industry. "As the iron ore mining is the mainstay of activity, our decision to stop exports will hit the livelihood of these people," Manas Daspatnayak, director, PK Ores, told ET on Monday.

"During the last few years, iron ore has seen a boom in its sales. This has led to tremendous spurt in economic activity in Orissa. The levy of export duty will have consequent negative impact on the iron ore industry, and more importantly and sadly, on the struggling citizens of the poverty-stricken state," said Mr Daspatnayak.

During the last five years, the life style of people of Keonjhar, Sundergarh, Mayurbhanj, Cuttack, Jajpur and Jagatsinghpur districts has undergone tremendous change. This has happened simply because more than 15,000 trucks ply daily from mining industry to the ports of Haldia, Paradip and Vizag, carrying iron ore fines for exports. Barbil, a small town of 50,000 people, now has as many as 50 hotels to cater to the needs of the people connected with iron ore export industry and thus bringing substantial economic gains to the common people.

In a letter to chief minister Naveen Patnaik, Mr Daspatnayak urged him to take up the issue with the Centre. "While Orissa government has been insisting for an increase in royalty on ore, the Central government has found every pretext to stop the same. How has the same Central government not hesitated for a moment before levying a duty which is 2,000% of the royalty rate? If indeed the move is to stop precious minerals exports, why levy customs duty, why not allow the state government to levy additional royalty?"

The letter alleged the role of an industrialist-turned-MP behind the export duty. "It is common knowledge that a big industrial house (having its owner a member of Parliament for the ruling party) had indeed lobbied and written repeatedly during the last six/seven months for a ban on exports of iron ores. This very industrial house has no compunction in irregularly in occupying and running a mining lease in Odisha (in Thakurani hills) to take away the ore in millions mt without any benefits shared with the local population whatsoever," it said.

http://economictimes.indiatimes.com/News/News_By_Industry/Indl_GoodsSvs/Metals
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