South Korean steel behemoth POSCO had to abandon its plans for setting up a 12-million-tonne steel mill in Odisha’s Jagatsinghpur district a few years ago in the wake of protests by the local people. The withdrawal of POSCO, whose project constituted the biggest foreign direct investment (FDI) proposal in the country when it was made, was a huge embarrassment for the government of Odisha. It was a setback to the government’s massive industrialization drive. Notwithstanding the fact that the state government too had a few reservations about the project when it came to renewing its memorandum of understanding (MOU) with the South Korean company, there is no denying that it would have been extremely happy and satisfied to see the plant coming up.
The epicentre of the protest against POSCO was the Dhinkia village in Jagatsinghpur’s Kujang area. The so-called popular movement against the company had the backing of some political parties who made the job of land acquisition extremely difficult for the government. The lucrative compensation package offered by the company was categorically rejected by the movement leaders. They even dismissed the state government’s resettlement and rehabilitation (R&R) policy, which was touted to be the best in the country, as unsatisfactory. Similarly, there was also a popular movement against the company’s bid to acquire the Khandadhar iron ore mines. Left with no choice, POSCO finally bid adieu to Odisha.
A POSCO re-run seems likely in the Kuganj area, with a public movement building up against another proposed steel project by an Indian company. Once again, a chorus for the withdrawal of the project is building up with roadblocks being created in its way. The same old issues of environment, forest and livelihood are being raised with local residents being misled by vested interests. The fact is that a handful of people have been trying to block not only industrialization but also other kinds of developmental activities as this serves their own interests. Protection of the environment has become a convenient excuse for them to carry out their anti-development campaign.
Being endowed with rich mineral resources, Odisha has a distinct advantage over many other Indian states. It needs to leverage this advantage to the fullest to accelerate the pace of industrialization. But this cannot happen unless the government creates a conducive atmosphere for the growth of industries. Investors are unlikely to stake their funds in Odisha if they face problems of land acquisition and hooliganism. The government has to take care of possible law and order problems while ensuring a smooth acquisition of land for projects.
POSCO’s withdrawal from Odisha was a bitter lesson for the state government which should change its approach towards industrialization in the light of that experience. It should put down mischievous attempts at blocking industrial projects with an iron hand. While genuine concerns of people must be addressed sympathetically, no one should be allowed to hijack a project to fulfil their own vested interests.
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