Showing posts with label POSCO. Show all posts
Showing posts with label POSCO. Show all posts

Saturday, April 21, 2012

Land acquisition fraud continues in Odisha.

Dear Friends/Co-sailors,

Please find below a news which proves how private land is being acquired in this state, illegally, in the name of 'public purpose' for 'private companies'.  The ruling of the Odisha High Court, that exposes this, is very important and we are sure this would have wide scale implication as such faulty land acquisition is a matter of common happening in the state. 


We hope the Govt. of Odisha will learn a lesson from this and provide justice to all the people in the state whose lands have been acquired under similar faulty procedures.

Thanks and regards,

Ranjan

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Odisha to withdraw notification from acquisition of 438 acres of private land in Posco site

The state government has initiated the process of withdrawal of notifications for acquisition of 438 acres of private land in seven villages in the project site near Paradip. The recent verdict of Odisha High Court would compel the state government to withdraw the notification from the acquisition of 438 acres of private land of proposed Posco steel plant.

Sources said that state government had issued the impugned notifications under section 4 and 6 of the Land Acquisition Act 1894 to acquire the lands in favour of the Posco steel plant. The acquisition process had been started by IDCO (Orissa Industrial Infrastructure Development Corporation), a statuary corporation to acquire land in favour of Posco, a company registered under the Companies Act 1956.

The corporation made requisition to the district collector, Jagatsinghpur to acquire the land for Posco steel plant in 2005. Accordingly, section 4 notifications were issued for the public purpose in favour of the Posco Company to set up its steel plant in the acquired land. Later administration issued notifications under section 6 (1) of LA Act in 7th Janauary’2008 for acquisition of land for public purposes for establishment of plant. The above notifications show that the land is being acquired for a public purpose and not for a private company.

Similarly, administration has been passed notification under section 6 of LA Act to give awards and payment of compensation to the land losers of these seven villages of three panchyats, Dhinkia, Nuagaon and Gadkujanga.  As per this process, one revenue officer has expressed that compensation of Rs 1.43 cores has been disbursed for acquisition of eight acres of private land in proposed Posco area at the rate of Rs 17 lakh per acre.

Challenging it as illegal process of land acquisition, six land losers led by Nisakar Khatua of Gobindpur village having lands in Dhinkia, Gobindpur, Bhuiyanpal,Polanga, Bayanalkanda, Noliashai, and Nuagaon had filed writ petition against principal secretary, department of revenue and disaster management, and four others in Odisha High Court for praying to stop illegal and forcibly land acquisition and to maintain status co to check the illegal activities.
Mr. V. Gopala Gowda, Chief Justice of Odisha High Court in his recent verdict has stated that the acquisition of land in the name of Posco company though corporation is not permissible in law as the acquisition of land is in favour of private company. Exercising the power by the state government waiving the statuary right under section 5 (A) of LA Act is bad in law and issue of notifications for land acquisition without there being an order of the state government is a gross and violation of Fundamental and Statuary Rights guaranteed to land owners under articles 14, 19 and 21 Constitutional Right.
It is also stated that corporation is not competent to acquire the lands exclusively for any particular company and could only under certain circumstances , acquire land for an ‘ industrial estate’ or an ‘ industrial area’ as defined Orissa Industrial Infrastructure Development Corporation Act 1980.

High Court has also observed that the impugned notifications under section 6 were published beyond one year from the date of publication of notification under section 4 (1) in respect of the land covering these villages. Similarly, section 9 was issued and served upon the land owners before passing awards by determining the market value of their acquired land and that awards have been passed beyond the period of two years.

High Court has realized that there is large number irregularities in land acquisition for private company and violation of fundamental rights of land owners so High Court directed that status co recently in respect of the private lands in these villages to be maintained till disposal of this writ petition.

Additional district magistrate, Paradip Mr. Surjeet Das has expressed ‘administration is waiting the directive of the state government to de-notify on all 438 acres of private lands for proposed Posco plant. As per section 48 of LA Act, government has liberty to withdraw from the acquisition of these lands of which possession has not been taken’- he added.


Report from Amarnath Parida: Orissa Diary, Saturday April 21, 2012
Source: http://orissadiary.com/CurrentNews.asp?id=33358

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Ranjan K Panda

Convenor
Water Initiatives Odisha: Fighting water woes, combating climate change... more than two decades now!
INDIA

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Water Initiatives Odisha (WIO) is a state level coalition of civil society organisations, farmers, academia, media and other concerned, which has been working on water, environment and climate change issues in the state for more than two decades now.

Wednesday, June 8, 2011

Fwd: [samukhya] Nation's conscience must be awakened to anti-POSCO struggle


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Date: Wed, Jun 8, 2011 at 10:19 PM
Subject: [samukhya] Nation's conscience must be awakened to anti-POSCO struggle
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PRESS RELEASE: New Delhi : 07 June 2011

Nation's conscience must be awakened to anti-POSCO struggle
Tackling corruption must begin by scrapping the scandalous POSCO project


The brutal police action unleashed by the UPA Government on Baba Ramdev's fasting camp in Delhi has shocked the nation's conscience; even the Hon'ble Supreme Court has taken suo moto cognisance of the blatant disregard for fundamental rights, and questioned the Government raison de d'etre to so quell dissent. Most mainstream political parties have jostled with each other to gain attention in condemning the incident; and this has by far been the only issue covered and debated non-stop by the electronic and print media for some days now.


However, little or nothing is being said or done about a far more serious situation that is developing in Jagatsinghpur district of Odisha, where villagers of Dhinkia, Gobindpur, Patana, etc., are resolutely and peacefully opposing the forcible acquisition of their private and forest lands by the Odisha Government for the benefit of South Korean steel major POSCO. Over the past few days, at least 26 platoons of riot police (over 1,000 police personnel) have been deployed to ruthlessly beat down women, children, the aged, and men who have kept a day/night vigil and not allowed any State functionary, police or company official to enter these villages; thus continuing a phenomenal act of peaceful resistance to POSCO venture, sustained for six years now under the leadership of POSCO Pratirodh Sangram Samithi.


Brutal police tactics, criminal intimidation and illegal methods are being employed here to wrest from these peacefully protesting villagers 4000 acres of extraordinarily fertile agricultural and forest land to establish the single largest industrial foreign investment conceived in recent times. The project involves the establishment of a mega steel plant (12 MTPA), backed by a massive coal-fired thermal power plant (400 MW expandable to 1,100 MW), and a major captive port for handling the world's largest cargo ships (Capesize, usually more than a quarter km. in length).1 The project involves further land acquisition for a captive iron ore mine requiring 6,100 acres of predominantly forest land in Khandadhar Hills of Sundergarh district and at least 2,000 acres more for a massive gated township to house POSCO employees. In addition, there would be dedicated water, road and rail linkages that will further exacerbate the displacement and environmental destruction caused by the project.


POSCO: A scandal far bigger than 2G scam


It is high time the nation's conscience is affected by what the project affected communities are suffering under the hands of the Navin Patnaik regime in Odisha. It is time to appreciate the fact that the POSCO project is perhaps the most shocking example of corrupt practices legitimised by State support. This is because the project is nothing short of a legalised loot of our natural resources – iron ore in this case. In an unprecedented deal, Indian and Odisha Governments have supported POSCO's demands to mine 600 million tonnes of the finest iron in India on a 30-year lease. Of this, 30% can be exported for processing in POSCO's Korean plants and thus endorsing profiteering abroad! With current fine iron ore rates crossing Rs. 8,000/tonne, it is simple arithmetic to note that POSCO can recover its capital investment of Rs. 52,000 crores in less than eight years, an unthinkable proposition in any industrial venture! Truly, the POSCO venture is a scandal far worse than those involving 2G and Commonwealth Games.


In fact, A. Raja, principal accused in the 2G scam, may have facilitated POSCO's entry when as Indian Environment Minister in 2007 he accorded the first major statutory clearance by approving the captive port component, one day before he transited to the Telecom Ministry. This was done without any review and also in response to severe pressure from then Union Finance Minister Chidambaram. Various key environmental and forest clearances quickly followed, all by subverting laws and breaking down the massive industrial/mining venture into little parts to hide their true environmental, social and economic consequences.


Three years later when Jairam Ramesh, the sitting Environment Minister, ordered a comprehensive review of these clearances by setting up two independent investigations, both committees confirmed that the clearances had been secured by fraud and subterfuge, and strongly recommended withdrawal of these illegal approvals. The appropriate action that the Minister should have taken was to cancel these fraudulent clearances and initiate criminal action against all involved in the POSCO decisions. Such action would have been true evidence of the oft-made claim by the UPA Government that it is serious about tackling corruption.


Instead, Jairam Ramesh claimed he was working towards "cooperative federalism" and on the basis of his "faith and trust" in the Odisha Government approved the project's environment and CRZ clearances on 31 January 2011 and subsequently the forest clearance on 2nd May. This was despite absolute evidence that the Forest Rights Act had been fundamentally violated by deliberately overlooking Gram Sabha resolutions (convened by the constitutionally empowered Panchayats in the project affected villages) that clearly rejected the project. Ramesh, thus, became a party to the fraud in environmental decision-making and also directly responsible for the dangerous situation that is developing in the POSCO affected villages today.


We fear that the exigent State police action that is now underway in these villages may result in another Kalinganagar or Nandigram type of situation. The scant attention paid by mainstream political parties, the media and the public is only strengthening the Navin Patnaik Government to disregard Constitution norms and act ruthlessly to secure lands for the advantage of POSCO.


In an effort to prevent such a carnage from taking place, various eminent people in the country have intervened and appealed to the Prime Minister of India to "immediately ask the Odisha government to halt this illegal attack, to withdraw all clearances given in violation of law, and to take an impartial position in the court cases filed by the people. Failure to stop this attack will show that the UPA government's much vaunted concern over issues of displacement, forest rights and "inclusive growth" is simply an eyewash." A copy of this appeal is enclosed.


While endorsing these demands, we additionally urge that:


  1. The Odisha Government must immediately withdraw its police operations and forcible acquisition of land for POSCO.
  2. The Central Bureau of Investigation must immediately expand the scope of its ongoing investigations against A Raja by reviewing his role in the POSCO clearances, and that of all those who have been involved in illegally promoting this scandalous project, possibly including then Finance Minister and presently Home Minister, Chidambaram.
  3. The scandalous POSCO project must be scrapped as its benefits will be accrued mainly by major American financiers (including Warren Buffet) who are major stockholders of this South Korean company.


Issued by: Environment Support Group (Bangalore), Campaign for Survival and Dignity, National Forum of Forest People andForest Workers (NFFPFW), National Alliance of People's Movements (NAPM), Delhi Solidarity Group, All India Progressive Women's Association (AIPWA) and All India Students' Association (AISA)  

Contact numbers: 9560756628, 9868337493, 9868259836 

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Ranjan K Panda

BASERA
R-3/A-4, J. M. Colony, Budharaja
Sambalpur 768 004, Odisha, INDIA
Mobile: +919437050103
Email: ranjanpanda@gmail.comranjanpanda@yahoo.com

Skype: ranjan.climatecrusader

Blog: http://www.climatecrusaders.blogspot.com/

A TRULY EVOLVED BEING IS ONE THAT VALUES OTHERS MORE THAN IT VALUES ITSELF....

Monday, January 31, 2011

Is POSCO decision a Death Certificate to MoEF itself?


Dear All,

We are shocked by the decision taken by MoEF minister Jairam Ramesh on the POSCO plant in Odisha.  Please find attached the decision that came today.  Some of the people who had been thinking Mr. Ramesh a champion of Environment and that of MoEF would find it surprising that he has in fact issued a death certificate for his own ministry by the way he has given clearance to the POSCO plants.  

We call India a democracy and here two independent committees detailed the fraud in clearance (forest and environmental), and two of the three statutory committees recommended against the coastal and forest clearances granted (only the Environmental Clearance Committee gave a somewhat questionable OK to it) , the Environment Minister has left it to the Odisha Government to give an "assurance" that the Forest Rights Act is not violated.  The same government who has been found cheating is now given the task to judge the theft?

This is a clear cut indication of the Ministry being sold out to Foreign Direct Investment and can be said that this decision challenges the very existence of the Ministry of Environment and Forests itself.  No balancing act between environment and development this; rather its a complete sale of natural resources to be destroyed by unsustainable industrialization.

The additional conditions that Mr. Ramesh has put are merely eye wash.  Further, the way it vests all the monitoring to be done by the state government and the other regulatory agencies (the ones who have pathetically failed to regulate and monitor pollution in this state) is a clear cut indication of the eye wash.  There is no condition laid out for the company and state government to return the land to the displaced people and environmental condition to the 'previous stage' if the conditions are not met by the government.

We had been demanding fresh EIA for the project since there was no comprehensive EIA done keeping in mind the various places and spheres of resources to be affected by the project.  Even the government of Odisha had itself said that it was assessing fresh the water allocation from different locations than the Jobra barrage.  However, there is no consideration of it given and serious environmental concerns have been conveniently ignored.

On January 21st this year news papers reported how visiting South Korean Trade Minister, Kim Jong-Hoon, on Thursday said India should not “disregard” the importance of the proposed $12-billion Posco steel project as the project would bring in a great deal of value for industry in the country and generate thousands of jobs.  And as we all know Mr. Ramesh was under pressure from almost everyone, including the Union Steel Minister.  So, finally, he has succumbed to the pressure of trade and given a ditch for his own environment.

We strongly urge upon him to reconsider this decision and order for fresh independent environmental appraisal of the projects that POSCO is proposing.  Or else, we are sure, he is just clearing the path of issuing a death certificate to his own Ministry.  This is a biased and political decision under pressure of capitalism.  This cannot be termed as the decision of the Environment Ministry.

Thanks and regards,

Ranjan Panda

Black Day for India's Environment!

As Jairam Ramesh, our so called Environment Minister succumbs to the pressure of huge foreign investment, and  sells out the Environment for a company's profit, I have only to say the following:


Come POSCO, come VEDANTA... 
come.. come the WORLD.. 
Our FORESTS, our WATER, our AIR and our PEOPLE are on a SALE. 
We have got a perfect SALESMAN in our very own JAIRAM RAMESH... 
Come take the opportunity, 
take our ENVIRONMENT, 
just give some crores to Party Funds and 
to kiths and kins of the politicians....

Friday, November 12, 2010

Cry, beloved coastline - Cover story on POSCO by retired senior IAS officer.

Dear All,


Please see what a retired senior IAS officer has to write on the POSCO episode in gfiles.  Gfiles, as the site puts it, is the country's first independent magazine written, designed and produced for India's civil services—the vast and formidable network of bureaucracies and public sector organisations that provides continuity and stability to this nation's governance.


Thanks and regards,


Ranjan Panda


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COVER STORY
posco
Cry, beloved coastline
Is this $12-billion project a sleight-of-land venture to short-sell Indian resources and seafront heritage?
by MG DEVASAHAYAM
POSCO-India’s project to build a steel plant yielding 12 million tonnes per year in Orissa, with a captive port and iron ore mines, is acclaimed as the single largest infusion of Foreign Direct Investment (FDI) since the Indian economy liberalized in 1991. Estimated at $12 billion (Rs 52,000 crore), the project, said the Orissa government, would “bring prosperity and well-being” to its people through industrialization based upon exploitation of its natural resources. However, the project has faced strong resistance from a vigorous people’s movement on the ground, comprising villagers apprehensive of losing land and livelihood. Consequently, five years after the project’s launch, POSCO has yet to acquire a single acre of land and is embroiled in legal, logistical and procedural quagmires.
Perhaps to rescue the company, Minister of State for Environment and Forests Jairam Ramesh appointed a fourmember committee comprising Meena Gupta, former Secretary, MoEF, V Suresh, a civil liberties lawyer, and Devender Pande and Urmila Pingle, experts on forests and tribals, respectively, to go into all issues relating to the environmental and forest clearances granted to the project. Ironically, the committee’s majority report (3 to 1) has further pushed the company into the slush by recommending revocation of the environmental, coastal and forest clearances granted.


The committee’s majority report (3 to 1) has further pushed the company into the slush by recommending revocation of the environmental, coastal and forest clearances granted.

The finding is as damning as that of the NC Saxena Committee in the case of Vedanta: that these clearances were secured through suppression of relevant information by the project proponent, that regulatory agencies systematically overlooked critical concerns, and that key appraisal bodies of the MoEF and the Orissa government ignored experts’ demands for comprehensive inquiry and rushed the clearances through regardless of the project’s irreversible and widespread social, environmental and economic consequences. 
At the outset, the appointment of Gupta, who was Secretary of the Ministry when the clearances for POSCO were accorded, as the committee chairperson was a case of conflict of interest. There was obviously a hidden agenda which is revealed in her highly opinionated “minority” report starting with her objection to the Terms of Reference of the Committee to “review compliance with statutory provisions, approvals, clearances and permissions under various statutes, rules, notifications, etc.” She also castigated the other members when they wanted to assess not merely the compliance with the clearances granted, but the grant of the clearances per se. Her report recommends adoption of a “business as usual” approach i.e. the POSCO project should go ahead, while some more comprehensive studies could be undertaken though they will have no bearing whatsoever on mitigating the project’s massive environmental and social impact. She also did not want anyone to even question the legitimacy of the clearances given when she was at the helm of affairs. 
GUPTA’S shenanigans appear to be not merely to cover up her own role but also the continued complicity of the MoEF. This is evident from the fraudulent manner in which POSCO obtained the Environmental and Coastal Regulation Zone (CRZ) clearances. To start with, this massive project was deliberately unbundled into its smaller parts and applications moved to secure their clearances as though they were independent projects (4 MTPA steel complexes, 400 MW power plants and captive “minor” port), even though they constituted one project and were situated within one complex and POSCO had clear intentions of ramping up production to the full capacity of 12 MTPA in just six years (by 2011). These clearances were given on the strength of a single- season rapid EIA instead of full-year comprehensive EIA, as required.

Gupta covers up her own and the MoEF’s complicity. This is evident from the manner in which POSCO obtained the environmental and related clearances.

The township project, requiring considerable additional land, as well as the huge water requirement for the project were suppressed. Claiming the port to be a “minor” one is a major fraud. The port was designed for Capesize ships – 170,000 DTW capacity, each approximately 280 m in length, perhaps the largest built in Asia, to come into the ecologically sensitive Jatadhar creek. This would require 12-km channels and tranquil berthing facilities for which there would be massive sea walls built – one 2 km and another 1.6 km long. The devastation that such massive infrastructure facilities would cause is unimaginable, considering that the Jatadhar creek is an important nesting site for the critically endangered Olive Ridley turtles. This is the region of paan kethis (betel vine farms) where sand dunes provide sweet soil and water and also protection during cyclones.

The people deserve an answer from Jairam Ramesh, the scholarly Minister striving to bridge the “cultural divide” between environment and development.

POSCO also did not come clean on the fact that it would raise the entire base of the 4004-acre plant area by five metres by dumping millions of tonnes of sand dredged from the sea to protect the plant from a supercyclone like the one that slammed Orissa in 1999 (with wind speeds of 260 kmph, waves of 5.6 m height and 100 km length). It swept some 20 km into the hinterland and killed 15,000 people. 
That the ramifications of such a plant design will devastate the ecologically sensitive estuarine and deltaic complex and potentially increase vulnerability of surrounding regions was clearly not a concern for POSCO or the MoEF authorities. 
The “majority report” is clear that there was comprehensive violation of the due processes of the Forests Rights Act by the Orissa government and suppression of critical concerns of environmental and social impacts of the project, raised in the Orissa State Pollution Control Board, Regional Office of MoEF (Bhubaneswar) and in initial meetings of the Environmental Appraisal Committees of the Ministry. Hence the recommendation for their immediate revocation.
THE majority report reveals from file notings that there were pressures – especially from the Union Finance Ministry, then headed by P Chidambaram, a former Director in Vedanta. It says: “The committee is constrained to comment that the proximity of dates between the letters from the Finance Ministry and the hasty processing of the approvals by the MoEF and the EAC despite the serious shortcomings and illegalities is more than a mere coincidence. It is very clear that not all is well with the functioning of the MoEF. We are also constrained to observe that the brazen interference by the Ministry of Finance into functioning of another Ministry is most unfortunate, highly improper and against public interest.” It has also been revealed that where there should be only one set of minutes of the final decisions of the Expert Appraisal Committee of the MoEF, there are actually two, the unofficial version amended by the chair to benefit POSCO. 
What all this reveals is that the POSCO project, like the Vedanta one, is a sleight-of-hand joint venture to short-sell India’s natural resources to corporate moneybags. Were one to factor in the issues involved in the mining clearances, not yet secured, particularly the revenue stream losses – given the pathetically low royalties now required to be paid – the project is certain to be an exemplary carpet bagging exercise.

Efforts are on to bring about an image makeover for the project. Certain media groups have joined this charade by calling the independent majority group a “kangaroo court”.

Intense efforts are on to bring about an image makeover for the POSCO project. Certain media groups have joined this charade by calling the independent majority group a “kangaroo court” without any expertise while hailing the pliable former bureaucrat as an expert. The Vedanta and POSCO episodes raise a critical question. What is the mandate of the MoEF? Is it to protect and safeguard the environment and natural resources of the country, which is the common heritage of its 1.2 billion people? Or to function as a midwife chaperoning corporate investors and carpetbaggers in mindlessly exploiting our natural heritage by willfully violating the laws of the land? There is another reason for concern. 
Recently, a new entity – a “road on stilts”, an euphemism for an 18-ft high and 80-ft wide concrete monstrosity on massive pylons – was smuggled into the CRZ draft notification to make it a permissible activity on India’s sandy beaches over the waves. Given the potential this has for devastation of the Indian coastline by opening it up to huge construction and commercial real-estate development, it is easy to guess who are behind this crude manipulation. The people deserve an answer from Jairam Ramesh, the scholarly Minister striving to bridge the “cultural divide” between environment and development.

Wednesday, November 3, 2010

POSCO Update - FAC recommends scrapping of forest clearance for Posco

Dear All,

Hope you will find the following news on developments with regard to POSCO project useful.

Thanks and regards,

Sincerely,

Ranjan Panda

Water Initiatives Orissa: Fighting water woes, combating climate change…more than two decades now!

======================

FAC recommends scrapping of forest clearance for Posco
BS Reporter  | 2010-11-04 01:21:00

In yet another setback to the Rs 54,000-crore Posco project, India's biggest FDI, the Forest Advisory Committee, a panel under the Union ministry of environment and forests (MoEF) has recommended scrapping of forest clearance given to the project.

The FAC has claimed that it has found ample evidence of the violations of Forest Rights Act (FRA) at the Posco project site. The statutory body has made the recommendation for withdrawal of forest clearance in its assessment report submitted to the MoEF.
The MoEF is likely to take a decision on the Posco project next Monday.

The FAC's recommendation follows similar demands made by the Saxena committee as well as three members of the Meena Gupta panel. Both the panels were constituted to look into different issues pertaining to the mega steel project.

The report submitted by the three other members of the Meena Gupta panel- Urmila Pingle, Devendra Pandey and V Suresh had called for immediate revocation of the environmental clearance granted for the steel plant and the captive port project even as the panel leader Meena Gupta in a separate report opined for allowing Posco to go ahead with the project subject to completion of a comprehensive environment impact assessment (EIA) and imposition of certain conditions.

These three members felt that there have been serious lapses and illegalities in the EIA process. They held that the EIA prepared for the Posco project was a rapid EIA, based on one season data without taking into account all the components of the project like township project, water project, rail road and transport facilities.

They had stated that there was documentary as well as oral evidence to support the presence of Other Traditional Forest Dwellers at the Posco project site. They also alleged that the Jagatsinghpur district administration has not been fair and democratic in implementing the FRA in the project affected villages.

They held that there has been lack of adequate publicity, awareness campaign, training as required to the people and the Palli Sabha specially, in the project affected villages, about various provisions of the FRA and the process which forms the first link of the FRA implementation.


Won’t implement forest act again, says Orissa
2 NOV, 2010, 04.43AM IST,ET BUREAU

NEW DELHI: South Korean steel maker Posco’s `12,000-crore project in Orissa appears to be in for the long haul. Even as the Forest Advisory Committee is considering its recommendations on the project’s compliance to forest laws, the Orissa government has stressed that a demand to open the issue of claims under the Forest Rights Act, could result in violence in the area.

The state government has made it clear that there is “no question of implementing the Forest Rights Act again” as the law as been administered in its “true spirit”.

Sources said that the state government has in a written submission indicated that attempts to implement the Forest Rights Act in the project area “all over again” could “lead to violence”. Even as it raised the spectre of violence, the state government has fallen back on its record of implementing the Act to stress that all claims in the project area have been settled.

The Posco review committee appointed by the environment ministry has clearly stated that the implementation of the Forest Rights Act has been incomplete in the project area. Both the majority and dissenting reports of the Posco review panel have clearly stated there have been shortcomings and inadequacies in the state’s implementation of the Forest Rights Act.

Three reports — two by the Posco review committee and one by a subcommittee of the joint panel of the ministries of tribal affairs and environment — have documented that the claims of “other forest dwellers” in the project area have not been settled. “Other Forest dwellers” refers to non-tribal population who have been dependent on the forest for their livelihood for the last 75 years or three generations.

The Orissa government assertion that all claims have been settled has not been backed up by the requisite gram sabha resolutions. As per the August 2009 order of the environment ministry, forest clearance cannot be given till all claims under the Forest Rights Act have been settled and the gram sabha passes a resolution to this effect. The Orissa government has not been able to provide the environment ministry with the gram sabha resolutions.

POSCO exaggerated job potential - Report

Dear All,

The following news is important considering the fact that yesterday the Chief Minister of Orissa came in the media telling POSCO will create a lot of jobs and hence is essential for growth of the state.

Thanks and regards,

Ranjan K Panda

Water Initiatives Orissa: Fighting water woes, combating climate change... more than two decades now!
========================== 

POSCO exaggerated job potential - Report

Did POSCO exaggerate the employment potential of its INR 50,000 crore plant in Orissa? A group of US based experts has accused the Korean steel giant and Orissa of fudging statistics on potential jobs to hard sell the integrated steel plant.

A paper prepared by Mining Zone Peoples' Solidarity Group, a collection of economic professors and engineers and others based in the US, has unraveled the figures estimated in an NCAER report that POSCO funded to find that the project at best will bring only 17,000 jobs in the first year and not more than 50,000 jobs for the state with 0.99 million unemployed.

POSCO had claimed that its project in Jagatsinghpur would bring unemployment down from 0.99 million to a mere 0.12 million.

The paper states that "The employment potential of the project has been grossly exaggerated by POSCO and Orissa government, based on an inaccurate study by NCAER. A careful breakdown of the much touted '8.7 lakh man years of employment for 30 years' claimed by the NCAER study shows only 7,000 direct jobs and a maximum of 17,000 direct and indirect jobs in the next 5 to 10 years."

The paper states that this would mean only a "maximum of 1.7% reduction in current unemployment levels as against the exaggerated claims by POSCO".

Their evaluation of the NCAER study and POSCO’s claims shows that even when the plant is running at its full capacity 1-30 years from when it starts construction it will only provide 48,000 jobs which is still just 4.7% of current unemployment. That too if one assumes that the number of unemployed remain static in time and doesn't increase with time and population. (Sourced from Times of India)


Tuesday, November 2, 2010

Posco's chances dim as another panel says no

Posco's chances dim as another panel says no
Nitin Sethi, TNN, Nov 3, 2010, 01.41am IST

NEW DELHI: The deck's being stacked against Posco. In the biggest blow yet to the South Korean giant's Rs 54,000-crore project in Orissa, a key committee of the environment ministry has recommended the withdrawal of forest clearance to the multinational's plan to build an integrated steel plant. If accepted by environment minister Jairam Ramesh, the recommendation of the forest advisory committee (FAC) could sound the death-knell for the country's biggest FDI project. What adds significance to the FAC's red signal is the fact that it's a statutory body and Ramesh has rarely overturned its recommendations.

The report comes on the back of two adverse reports, with Ramesh citing violations of envirionmental laws by the Korean promoters of the mega industrial project and the Orissa government.

If the content of the report of the FAC, about to be submitted to the ministry, marks a blow, the timing was hardly propitious either. It came on a day when Congress chief Sonia Gandhi identified environment protection as one of the party's top concerns.

The environment ministry, remarkably proactive under Ramesh, had earlier stayed the clearance for Posco after the N C Saxena panel had pointed to violations of the Forest Rights Act by the Orissa government while carrying out acquisition of land for the project. The environment ministry awaited the report of the Meena Gupta committee set up specifically to review Posco for compliance with all green laws.

Three out of the four members of the Gupta committee pointed to grave violations of FRA and other green laws as well as collusion and fabrication by the state government in an attempt to secure the forest clearance.
The report was referred by the ministry to the FAC to take a view on the forest-related violations of the project. The brief for the FAC was clear. If it agreed with the Saxena and Gupta panel reports that the Orissa government had not settled rights of forest dwellers under the FRA and evidence for the same was not presented to environment ministry, it would have to withdraw the forest clearance as per the ministry's August 2009 directive.

The FAC, which has three non-official members on board and is loaded with forest officials, initially dithered from following the parent ministry's directive. It decided to throw the ball in the tribal affairs ministry's court. But an internal review within the FAC of its stand made it clear, sources said, that there was ample evidence of violations of FRA and the ministry's directive made it an imperative that the forest clearance be withdrawn.
Though the FAC is only an advisory body, Ramesh could now find it hard to go against the recommendations of the statutory FAC and two other special committees--one under NAC member N C Saxena and another under ex-environment secretary Meena Gupta. It would also be difficult for Congress to sidestep violations of an Act that it had just recently used in the Vedanta case to prop-up Rahul Gandhi's image as a pro-tribal leader.

The majority report of the Meena Gupta committee had also pointed to serious violations of other green laws--the CRZ rules and the environmental clearance regulations. These are being assessed by different divisions of the ministry separately and sources in the environment ministry said the nature of violations seemed to be as serious in these cases as well.

Posco may not be seeing the end of the road to the current site location yet but the FAC's recommendation will definitely make it difficult for the government to now allow the project in its current shape.
The Orissa government, if it wants to help Posco, could still undertake the settlement of rights under the FRA before applying for a fresh forest clearance with environment ministry but it has in a written submission to the Centre challenging the FRA itself and, playing the law-and-order card, has said that undertaking FRA processes again could lead to violence in the state.

The Orissa government had not been able to settle the forest rights of the people on the location under the Forest Rights Act. It has not been able to secure the mandatory approval of the gram sabhas (village councils) permitting diversion of the forest land. Instead, the two environment ministry panels had stated that the state government had presented fabricated documents to claim it had done so.

Sources said while difference of opinion had existed between the FAC members at the initial stage, it was accepted that Posco had failed in compliance of its conditions laid out while giving the conditional forest clearance earlier. The conditions included one requiring Orissa to furnish proof that FRA had been followed.
Orissa was unable to provide the documentary proof and instead tried to skirt around the requirements of FRA by stating that it had followed another process to do the same.