Though people of western Odisha were jubilant after inauguration of the Khordha-Balangir rail line on Thursday, people of Jagatsinghpur termed it a black day for the entire coastal region with news flying thick and fast that South Korean steel giant Posco had decided to freeze its proposed steel plant project near Paradip.The development sparked mixed reactions from both pro and anti Posco sympathizers living in proposed project site spread over three gram panchayats in Dhinkia, Govindapur and Gadakujang under Ersama block.
People across Jagatsinghpur district dubbed Posco’s decision as spelling the end of a ten-year battle. The project billed as the largest ever foreign investment in India had faced hurdles from political, administrative and local resistance. Posco sent a message that Jagatsinghpur is not an attractive destination for any major industrial project in coming days.Posco’s pact with the Odisha Government just a decade ago to build a steel plant and set up its own captive port facilities in Paradip offshore had drawn locals’ wrath. There was a prolonged resistance from Posco Pratirodh Sangram Samiti (PPSS) which had forced Posco to scale down its project and its requirement of land. It reduced its production capacity and eliminated anti-Posco bastion Dhinkia village from project ambit.
Environment clearance for the project, however, was one of the biggest stumbling blocks besides getting captive mines. Accessing to iron ore, the main item in making steel, accorded as an important factor for Posco, was a difficult job with the Government not being able to hand over the Khandadhar Hills in Sundargarh. The locals gave a stiff resistance to the handing over of the verdant hills to Posco for mining iron ore. The last straw that broke the camel’s back was the MMDR Act of the new BJP-led NDA Government. Posco was required to participate in auction to get lease of the mines instead of the recommendation of the State Government for prospective licence. Posco pleaded that if it was to procure iron ore on commercial terms from elsewhere in India, it would be highly costly.
The Posco project received major jolt due to prolonged resistance from affected residents those who have been protesting acquisition of their land. The Government’s efforts at acquiring land were opposed from humanitarian, economic, environmental and livelihood points of view. However, amid stiff protests, the Government was able to acquire 2,000 acres out of the targeted 2,700 acres and had handed over the land to Posco for its proposed steel plant in the year 2013-14. Posco had built a site office in nine shipping containers and began boundary wall construction. It had said the project work would continue at great speed subject to Odisha Government’s transfer of the required land.
Civil and police administrations have been accused of targeting those who voiced against the Posco steel project with violence, arbitrary arrests and detentions including both physical and mental tortures. Allegations were reported that police had lodged fabricated criminal charges against individuals and anti industry brigade. Hundreds of such cases are pending in several courts till date.
The anti-Posco movement had created an impact beyond India with many environmentalists and human rights activists protesting the project in several countries. Even, the UNO had asked for submitting a report in this regard.The potential problem for the Posco project was clearance of trees to make way for the project. As many as 2 lakh trees had to be axed at project site. This was challenged at the National Green Tribunal, an apex body to assure citizens’ right to a healthy environment. The tribunal said the Odisha Government was not authorized for the felling of trees and stopped the tree feeling process.
Political hurdles marred the project severely. The project MoU had been inked when there was a coalition Government of the BJP and the BJD in 2005. However, the BJD parted ways with the BJP in 2009 general elections. Soon afterwards, the BJP began opposing the Posco. The saffron leaders vehemently opposed Posco’s prospective licence for Khandadhar mines and supported anti Posco resistance. The Congress, left parties, NGOs, rights activists across the globe joined a single platform opposing Posco.
Virtually, the State ruling BJD was struggling single-handedly to save the project. Party’s Jagatsinghpur leaders Minister Damodar Rout and district BJD president Bishnu Das were blowing hot and cold in regard to the fate of the project. Their stand was not clear, and hence, they were not able to create a favourable atmosphere for the project.
Be that as it may, Posco’s decision to give up the project has created serious resentment among people of Jagatsinghpur. The resistance has lost its direction as people of the project site are largely in favour of it. The atmosphere is conducive, by and large. Posco Chairman Kwon Oh Joon’s revelation to hold up the eastern India project at this juncture is unfortunate and neither the South Korean company, nor the Governments in the State and the Centre would be able to compensate the loss, harassment and trauma sustained by the people of the project site over the last ten years.