POSCO EMBROGOLIO-WIN WIN SOLUTION

Bikash Choudhury



Second Steel Plant at Paradeep was one of the dream project of Late
Shri Biju Patnaik. Biju Babu wished to add value (Steel Manufacturing)
to abundantly available raw material-the Iron Ore in Orissa; instead of
exporting Iron Ore. That would have substantial Macro-Economic impact
with opportunity for large scale job creation directly and indirectly.
Fortunately, that vision of Biju Babu still holds good and
therefore, ideally, POSCO steel Plant should come up without any further
delay. The extraordinary time lag of six long years has no doubt dented
the Industry friendly image of Orissa and the Country to an
extent. There is an International angle also; as the South Korean Govt.
very keen to see the project through. Therefore, our PMO is backing the
project to the hilt in spite of some genuine concerns of green brigade
of Ramesh & Co. The toughest challenge in POSCO Project has been the
land acquisition in the designated project area of POSCO; in face of
with the organized & motivated opposition from the residents of the
project area. Nowhere in the country the protest against land
acquisition has been as effective as that of in case of POSCO, led by
organization curiously named after POSCO PRATIRODHA SANGRAM SAMITI and
its charismatic & shrewd &Media savvy leader, Shri Abhya Sahu.The
story of their struggle has consumed million pages of Local, National
& International Media. Leader cutting across Party line also supported
their cause vociferously. The face off ask for a win win solution.80%
of the land to be acquired belong to Govt. Therefore, the people of
Dhinkia & PPSS must not hold the Govt. to ransom.Govt. Also should be
sympathetic to its own people. No dispute is as big as to defy an
amicable solution through constructive dialogue. People of Dhinkia and
adjoining area can't live under sanction from their govt. and it is
also equally true, POSCO may not be able to run the plant with
complete Social boy cut in the vicinity of project area. Even if POSCO
manages to run the plant, the cost of operation would be relatively
higher in a emotionally surcharged environment.
Now the moot point is how to acquire the
land peacefully while maintaining social good will for the project in
the area? Social thinker believe, State Govt. & POSCO jointly relocate
the families of project area and their lively hood to any of the
nearby 100-200 villages in the vicinity of 10-20 Sq.Km. with the
consent of villagers; in this method the bounty and pain of the project
can be equitably shared by the community. With input of an ingenious
Architect the old habitat at project area can be identically
replicated at the new location, thereby, reducing the emotional strain
of internal displacement. Creation of conducive Eco-System for
internally displaced people should henceforth be one of the very
important issue for the managers of land acquisition for "The Peaceful
Industrialization" Paradime.The police personnel those who enforce
Govt. policy on land acquisition should & must show empathy towards
people who have to be evicted from their inherited
Eco-System; ownership can't be the sole parameter.
The other aspects of the project are
its "Net Economic Impact" as per the current terms of engagement. At
the moment, there are various shades of public opinion about National
Interest vis-a-Vis Posco Project. A section of people and popular media
believe, POSCO has got it easy. Which has never ever granted to any
domestic player or any MNC before. With 600 million tonnes of Iron ore
mining lease, Captive port, SEZ status and on top of it arrangement to
export Iron ore to parent plant in South Korea.

Orissa would bear the brunt of environmental impact of large scale
mining of the project, pollution generated at the plant and our own
people would have to become refugee in their own land. In exchange our
people get some white collar jobs and some construction contracts at the
max.Is this fare bargain? The provision of SEZ & Iron ore export are
entirely against the interest of people of Orissa; as Govt. would lose
huge amount of revenue in the life span of the project; which otherwise
could have been deployed for uplifting people from bottom of pyramid in
the State. A neutral Economic Impact Assessment of the POSCO Project
would vouch for ten percent equity of State Govt. to compensate
against the Environmental impact and consumption of Natural
resources. If POSCO does not agree, then Orissa Govt. should have the
option to carry on with the project in "Technical Collaboration with
POSCO" in partnership with domestic investors. Time and tide waits for
no Man and no Industry. The FDI perspective and Competitive landscape
has under gone unprecedented changes since the first signing of the
MOU six years earlier; therefore, Orissa Govt. must rethink before
inking the renewal of MOU with POSCO in larger and long term interest
of the State & Nation.