Conflict between ambition and local aspirations lies at the core of every big ticket project, and whether it is the big daddy of all Greenfield projects – POSCO’s originally proposed 12 million tonnes steel plant in Odisha’s Jagatsinghpur district, or the alumina refinery project which a joint venture (JV) project between Odisha Government and Sterlite Industries in Kalahandi – both have emerged as prime examples of this in recent times.
That the interests of the original inhabitants – be they villagers, forest dwellers, tribals or townsmen – are supreme, has been proved on several occasions. And if any ambitious project has to move forth, the rights of those on whose lands the foundation of such endeavours is to be laid, have to be preserved.
The Supreme Court’s April 18, 2013 order directing Odisha Mining Corporation (OMC) and Sterlite Industries (which is a subsidiary of london-listed Vedanta Resourcs Plc) to go back to Gram Sabha of Kalahandi (where lanjigarh alumina refinery is located and where also Niyamgiri hill is situated, housing bauxite reserves) and seek clarity on issues related to the religious sanctity of the proposed mining site and consequences of mining activities on the religious beliefs of the local tribes – significantly underlines this aspect.
Though Vedanta officials told The Pioneer that the SC order actually opens for them a window of opportunity as far as the future of the 1 million tonnes per annum lanjigarh alumina refinery project is concerned, experts explain that interests and concerns of locals – whose land is primarily required to set up any project – should never be ignored.
While refusing to directly comment on the SC order, those directly involved with the project on condition of anonymity said that on closer scrutiny, the apex court has said that the Gram Sabha has to consider whether tribals “like Dongria Kondh, Kutia Kandha and others, have got any religious rights i.e. rights of worship over the Niyamgiri hills, known as Nimagiri, which is the hill top known as Niyam Raja… Gram Sabha can also examine whether the proposed mining area Niyama Dangar, 10 km away from the peak, would in any way affect the abode of Niyam Raja”.
The order further said that in case the mining area affects the religious rights of the tribals, then “that right has to be preserved and protected”. The apex court found that this aspect of the matter has not been placed before the Gram Sabha for its active consideration.
While Vedanta sees hope in this development especially in the light of the fact that the refinery as well as the captive power plant had to be temporarily shut down in December 2012 after Environment Ministry had withdrew Stage II clearance for the project and suspended Stage I clearance – the underlining aspect remains that local interests can’t be undermined at any cost.
“Whatever be the concerns of the local population, they have to be kept in mind by those who are starting projects. It should be seen that questions being raised by the affected parties are not ignored while initiating ambitious ventures,” said Arvind Mahajan, Partner for Advisory practice and Head of Energy & Natural Resources and Global Infrastructures practices of KPMG in India.
Industry watchers echoed similar sentiments, saying that increasingly it has been noticed that concerns of those at the grass-root level are taken for granted by entrepreneurs and later on these neglected issues snowball into major obstacles for such ambitious projects.
South Korean Steel major POSCO’s ambitious steel project in Odisha’s Jagatsinghpur district, which was originally envisioned in 2005 to be a 12 million tonnes capacity venture with an investment totaling $12 billion, is yet to take off mainly owing to issues to land acquisition.
Acquiring land for this project became a problem as local tribals and villagers literally stuck to their ground, refusing to part with their lands. Subsequently the project had to be downgraded after reconciliation was reached to acquire 2,700 acres of land, considerably down from the originally planned 4,000 acres. Resultantly it was decided by the project management that they will now produce 8 million tonnes per annum from the proposed steel plant.
In case of Vedanta’s lanjigarh refinery project also, while the plan was to expand it from the existing 1 million tonnes per annum capacity to 6 million tonnes per annum, due to the issues related to the site from where it plans to mine bauxite for the project, its future now lies in the hands of the Kalahandi Gram Panchayat.