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:
The Odisha Government must immediately withdraw its police operations and forcible acquisition of land for POSCO.
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.
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