Even as Industrial Policy Resolution-2007 (IPR-2007) has failed to accelerate rapid industrilasation in the State. Especially in Angul, various ongoing and proposed industrial and mining projects have failed to take off due to stiff opposition from the locals and failure of the Government to provide the key supports.
The weak industrial performance can be attributed to ineffective State-business relations (SBRs) which means lack of maintenance of benign collaboration between the agents of the State and business.
Effective SBRs would have led to credible commitment on the part of the Government to certain policies, which would in turn minimise uncertainties in the minds of the investors and increase the rate of investment. But it did not happen, observed experts.
Now, while MCl has no land for mining in Angul district, it is facing stiff opposition from the affected people on issues of employment, rehabilitation compensation and pollution. Mining and industrialization in Angul-Talcher region have been more than double in last 30years.The agricultural land and forest cover area have decreased in the region due to increase in opencast mining activities of the MCl. Because of heavy machineries and extra activities, the compactness of soil has increased affecting the quality of soil in and around the mining area. Huge amount of overburden dumps and other mining wastes have been deposited on useful land. No serious efforts have been done to contain pollution, said sources.
The Jindal Steel & Power limited (JSPl) is setting up a 6.0 MTPA integrated steel plant and captive power plant at Angul. The company has already invested over Rs 17,000 crore in the project. The first phase is almost ready with the commissioning of Steel Melting Shop (250 T Electric Arc Furnace, largest Electric Arc Furnace in India), Plate Mill (1.2 Million Tons per annum - India’s widest 5.0 meter Plate Mill) and 6 units of 135 MW Captive Power Plant (CPP). The coal gasification plant is in the final stage of commissioning and is expected to be ready by the end of November next. The CGP – DRI route, once ready, will mark the completion of the 1.5 MTPA facilities of the first phase. For the next part (4.5 MTPA facilities), further construction and infrastructure development activities related to the plant, the JSPl is in advanced stages. The company has also lined up an investment of Rs 60,000 crore on a coal-to-liquid (CTl) complex at Durgapur in Angul district. The project includes a 1,100 MW CPP and 50 million tonne per annum coal washery.
Ensuring coal and iron ore for the plant is the key challenge for the JSPl. The iron ore mine is also a pending issue and is getting critical as it is very important for the operation of the plant. Execution of mining lease for the Utkal B1 coal block is pending for a very long time.
Another important requirement of the plant is water connectivity. Completion of 28.8 km long cross country pipeline from Samal barrage is a critical need. Out of this, only 3.16 km in Kankarai and Pirakhaman villages is completed. This is a major concern for the JSPl as the plant is almost ready for commissioning and regular supply of water is not ensured.
Around 1,800 acres of land has already been acquired and registered by IDCO in favour of the company. However, the JSPl is yet to get physical possession of the land. As the first part of the project is nearing completion, there is a need that the work force has to be utilized in other areas. Therefore, the next logical step is immediate, uninterrupted commencement of work over 1,800 acres of land.
The JSPl is facing stiff opposition from the local people on issues of employment. However, the company told that out of total employment, local people constitute 98 per cent , 66 per cent and 47 per cent of (i) unskilled / semi skilled, (ii) skilled / high skilled and (iii) supervisory and managerial category as against the HlCA Guideline of 90 per cent, 60 per cent and 30 per cent, respectively.
The JSPl at the present stage barely needs support of the Government and local people for key enablers like the raw material linkages and the physical possession of the land and sustainable sourcing of water.
Most disturbing factor is that, the JSPl, even after production, has no coal mine, no required land and no water connection. Under these circumstances, it is difficult for the firm to operate coal mine and acquire the required land.
Nalco has shut down 335 pots out of total 960 pots of its Smelter Plant and 4units out of total 12 of its CPP at Angul due to acute coal shortage. Due to stiff opposition of the local people, it has failed to acquire land for its captive coal mine. Despite being a public sector unit (PSU), the company has failed to win the confidence of the local people as a result of which, its expansion projects have been hindered.
Industrialist, social activist and Citizen’s Action Forum chairman Santi Bardhan Mishra said, “The programmes envisaged in the IPR-2007 are not implemented economically, efficiently and effectively so as to achieve the objectives. Programme-specific operational guidelines, as well as financial rules and regulations, were not duly complied with in the process of implementation of the IPR. The IPR-2007 had delineated a multi-pronged approach for industrial promotion by providing infrastructure, institutional and pre and post-production incentives. While the IPR was designed to support industrialisation in general, it stressed on efforts to incentivise investment in thrust and priority sectors with a view to maximizing the triple objectives of value addition, employment generation and revenue augmentation.
Now, time has come to review the IPR and its implementation for industrial growth of the State.”