Monday, February 8, 2010
COMMON LETTER TO CHIEF MINISTERS OF ORISSA, CHHATTISGRH AND JHARKHAND
TRIBAL WELFARE SOCIETY
(HO:
Zonal Office (East Zone)
[Covering Chhattisgarh, Orissa, Jharkhand and W. Bengal]
A/3, Indrajeet Complex;
Email: tribalwelfare@gmail.com
BY ELECTRONIC MAIL
Dated: 25h July, 2007
I
To,
The Hon’ble Chief Minister
GovT. of Orissa
Bhubneswar, Orissa
AND
The Hon’ble Chief Minister
Govt. of Chhattisgarh
AND
To,
The Hon’ble Chief Minister
Govt. of Jharkhand
Sub : Long term strategic interest of the states of Chhattisgarh, Orissa and Jharkhand / laughable low rates of Royalty on Iron ore, Bauxite etc.,
Ref : Framing of new mining policy in the light of recommendations of the GoM of Govt. of India recommending New Mining policy
Respected Sirs,
Most humbly draw we draw your kind attention to the subject under reference, with hope that it will find best of your attention in the larger interest of the people of your states who are amongst the poorest people of the country despite state possess huge natural wealth. Serious questions are raised, why this scenario?
Many believe that due to rampant corruption such is the situation. How ever, out studies has revealed that it is the faulty mining policies practiced by the states, surrendering to the dictates of the union government. People laugh at the rate of Royalty that is to be paid by the mining companies.
It will be misconceived for the state to consider itself to be the owner of the scare natural resources but infect the same is held in the utmost public trust to serve/ utilize the scarce resources with the care. The resources cannot be spent at the throw away prices. The policy is for a better today and therefore it should be progressive with forward looking cherishing the goals of sustainable development. As such it is not only your moral duty but constitutional obligation also to practice realistic approach based on International market in the long term strategic interest of the state and its people, more particularly when we talk a lot about globalization.
No body is authorized to mortgage long term strategic interests of farmers / tribals who also enjoys equal right to earn livelihood, own property, equal living and above all protect their fundamental rights. While industrialists are pampered by showering huge sops in the name of development, Farmers / Tribals are brutally treated.
While handful persons create huge wealth by the virtual loot of mineral wealth, millions of poor are made pauper by leaving them alone to struggle for rest of their lives. Lack of trust towards the authorities has been exhibited in accidents like Kalinga Nagar and Nandigram. This cannot be defined as development. Our experience so far is that the tribals are the victims of the development and not its beneficiaries.
The doubt of the people that there exists an unholy nexus between the Industrialists and state officials stands exposed by the simple fact that the authorities by issuing Mining licenses at present laughably low royalty rates are infect issuing licenses to commit day light robbery of the mineral wealth. The nexus stands exposed by the simple fact that though the mining and industrial units do huge environmental loss, silence maintained by the state. This is just one proof of the existing nexus, besides the experiences of how the public hearing are held under the barrel of gun to crush the democratic voices of the poor people. It is also not a secret that to grab land of farmers/tribals, how “PRIVATE INTEREST” become “PUBLIC INTEREST”.
There is an urgent need to adopt a realistic mining policy with royalties based on market prices that can be the key to speedy development that can take the state equal to the front runner states of
Under the circumstances, We urge upon you all the supreme authorities of the three natural wealth rich states to form a joint committee to create a pressure group by forming a cartel similarly in lines with Oil Producing and Exporting Countries [OPEC] have formed to demand market based realistic share of the natural wealth like Iron ore / Bauxite and other costly natural minerals. The need is also to strongly oppose jointly the dictates of the central government to harp on the constitutional rights of the states. If center doesn’t agree, you the state have enough power in your hand to ensure that the natural wealth of the state is preserved for future and not looted.
We look forward to all of you with a great hope that your actions will result in the better future for the people of state by proper exploitation of natural wealth.
Thanking you and with warm regards
Yours truly
For Tribal Welfare Society
S/d
(Pravin Patel)
General Secretary, Central Committee and
Director, East Zonal Affairs.
Note: Confirmation in shape of hard copy goes by regular postal services.
LETTER TO THE CHAIRMAN , SC/ST ASSEMBLY COMMITTEE, ORISSA
TRIBAL WELFARE SOCIETY
(HO:
Zonal Office (East Zone)
[Covering Chhattisgarh, Orissa, Jharkhand and W. Bengal]
A/3, Indrajeet Complex;
Email : tribalwelfare@gmail.com
REGISTERED WITH A/D
20th January ’ 2005
To,
The Chairman
SC ST Assembly Committee
Bhubneshwar. (Orissa)
Sub : Non-Implementation of Rehabilitation package causing hardship and losses to tribals and others at Orissa / Flouting of rules and norms of Rehabilitation of displaced persons at different places of Orissa including Kalinga Nagar. / Criminal activities committed on tribals by non tribals particularly the industrialists. & Indifferent attitude of administrative machinery .
Ref : Discussions with you and other members of the House Committee in the subject at Kalinga Nagar, Dist : Jajpur (Orissa) on dated 17.01.2006
Dear Sir,
This has reference to the discussions undersigned had with you at Kalinga Nagar on 17.01.2006, on the above-mentioned subject. We would like to draw your kind attention to few specific cases where such incidents took place but those poor tribals are still in search of justice due to the indifferent attitude of the administrative machinery. You will agree that such kind of scenario certainly demoralizes the tribals in general and those who have been the victims in particular.
We have also come to know through the newspaper reports which states that outside elements are instigating Adivasis of Kalinga Nagar, including the name of the undersigned as one amongst them. This is far away from the truth, as far as we are concerned. We do not know what others are doing, as it is not our lookout. The fact is that our organization is a National Level NGO, committed to work for the welfare of the tribals. We may further inform you that our Society was born to work for the rehabilitation of the displaced tribals who were the victims of ethnic violence at North Eastern States of our country. The jurisdiction of the Eastern Zone covers the area of Orissa, Jharkhand, Chhattisgarh and W. Bengal. Hope this small piece of information will dispel all your doubts.
We strongly believe that the Kalinga Nagar struggle is a Suo-motto struggle of those Adivasis who are the victims of the wrongly cultivated rehabilitation policy of the Govt. of Orissa. It is also to mention here that those industrial houses, who are competing with one another to establish industries at a very fast rate, in the process have made mockery of the rehabilitation policy. Government of Orissa also is in the grip of those politicians and bureaucrats who are spearheading for a very speedy industrialization, without doing any homework as how those people who will be directly affected by such speedy industrialization will be resettled. It is a hard fact that Adivasis are bearing the maximum burden of displacement and even worst type of air and water pollution. The lives of thousands who are living in the vicinity of highly polluting plants are shattered. State Pollution Control Board has proved to exist on paper only. They are not bothered about the difficulties of the people affected by the polluting industries. Complaints made with the district administration are also going unheard or not replied. This has forced the tribals to believe that the administrative machinery is fully in the grip of the industrialists. Loss of faith and distrust towards administrative machinery is brewing in the minds of those affected persons.
We had drawn your attention that in order to solve the entire situation, one has to address those problems; it should begin with the industrial houses, which have bluntly violated the MOU executed with the state government. All these displacements have been made in the name of giving employment to locals with guaranteed jobs to displaced families. The truth is otherwise. Whiles locals are rushing from post to pillar to get the jobs, people from outside the state of Orissa have been given the reputable positions. Locals are either used in the lowly paid jobs as Rejas or Coolies or as helpers in the name of employment. There are cases where money is paid in the name of employment but no work is taken from them nor are allowed to go within the plant premises. It is a known fact that in the name of providing locals with vast employment opportunities, all this faster industrialization policy of the state is pursued which is evident in the MOUs those companies are executing with Government of Orissa. We bring to you kind knowledge following three cases for conducting a sample survey that will expose the truth.
- Nelanchal Ispat Ltd., at Kalinga Nagar. Jajpur District.
Over 700 families have been displaced but jobs have been given to only 185 persons from amongst those displaced families, that too after long struggle. Some reports states that those who have been displaced are over 1000 families.
- Bhusan Steel Ltd., at Thelkolei (Sambalpur District)
Over 1000 families have been displaced. Houses and landed property of nearly 600 Adivasis have been lost in the process. We have reports that a very limited number of about only 10 persons from those families have got the job, within the company. Many of those who are said to be employed are not allowed to go within the company premises. They have been ordered to report at a community center at the Rehabilitation Camp and are paid some money in the process without giving them any job to do.
Ex-Army men who were given land for their rehabilitation, that land has also been acquired, and even their pucca constructed houses have been bulldozed in the night hours destroying their belongings also. We also bring to your kind notice that those affected persons have stated to us that till date, no job or compensation has been paid to them and on the contrary, the police authorities have registered false cases against them.
- Orissa Cement Ltd., Rajgagnpur, Sundergarh District.
This company is producing cement on a large area of land acquired from tribals since last many years. The company manages maximum of its work with the help of contractors. Those contractors, flouting labour rules are exploiting laborers by paying them lowly paid wages, making the mockery of the rules laid down for payment of wages to workers in cement industries. Many of those displaced persons have been given VRS. Those who raise their voice to protect their rights are under the threat of being dismissed from service and hence, despite the grievances, are forced to suffer silently.
- Exploitation of natural water resources
Those industrial houses have dug up a number of large diameter deep bore wells through which they are constantly exploiting water resources for their industrial uses, in the process pushing the entire community around the plant to face the water scarcity not only for their agricultural but for drinking and sanitary purposes also.
The uncontrolled exploitation of the water from River Brahmani and Hirakud dam has also vast devastating effects on the people, who were till date depending on those water bodies for their routine needs imperiling the lives of those people coming under its effect.
- Severe Air and Water pollution.
In the mad rush for rapid industrialization, it is a very big question that how despite of strict rules laid down for preservation of Air and Water from pollution, how those highly polluting plants have got clearance one after another. There are cases where there are no Gram Sabhas held, or Gram Sabhas have strongly opposed the setting up of such plants or even without the approval of Maps by the Gram Sabhas the State Pollution Control Board have issued “No Objection Certificate” and also “Consent to Operate” at the scheduled areas, despite the violation of the norms and rules laid down for issue of such statutory permission.
The complaints made to the State Pollution Control Board are not heard nor even letters written to them are not replied. The silence of the State Pollution Control Board despite the lives of thousands of those who are adversely affected, leads one to believe that there is some thing wrong some where.
- Indifferent attitude of the local administration towards tribals
There are examples of Forcible occupation of the land belonging to tribals by non-tribals, Violations of their constitutional rights in the name of Industrialization, Benami transactions of their land in the name of tribal by Non Tribal persons and atrocity committed by non tribals on tribals in collusion with police authorities, all these happenings have taken place at Sundergarh District of Orissa. We here below mention few of the specific cases, for your perusal and purpose.
- Forcible occupation of the agricultural land
Sukra Mahali, a tribal of Village Khairban
A piece of agricultural land belonging to Shri Sukra Mahali (A Tribal) has been forcibly encroached by Shri Santosh Pareekh and few others (All non tribals) who have constructed a Sponge Iron Plant at village Khairban, GP Birkera, Block : Latikata, Sundergarh District. Copy of the complaint filed with National comission for ST, Govt. of India,
Jakarius Munda of Village Budakata.
- Atrocity committed on tribals by Non-tribals in collusion with the police authorities.
There are many examples to illustrate this fact. However, Few of them are brought to your notice for your kind perusal and purpose.
i) The house of Shri Dashrath Mahali a tribal of village Khairban, GP Birkera, Latikata Block of Sundergarh District was damaged by the dumper truck driven by the drunken Supervisor of Shree Balaji Metallic Pvt. Ltd., Despite his complain filed with the local police station, no action has been taken against the driver, nor the vehicle has been seized, nor the owners have been prosecuted, nor the poor tribal has been compensated. Copy of the complain filed with the National Commission for Schedule Tribe, Govt. of
ii) Ms. Christina Xess a tribal lady of village Khairban, GP Birkera, Latikata Block of Sundergarh District was publicly humiliated by Shree Santosh Pareekh, owner of Shree Balaji Metallic Pvt. Ltd., ( A Sponge Iron Plant) She was first dashed by the car that was driven by Santosh Pareekh and subsequently, she was pulled by her clothers and pushed aside, tearing her blouse in the process. Copy of her Compalin lodged with the local PS is enclosed herewith. You will be surprised to know that instead of taking action against Santosh Pareekh, the poor tribal lady was arrested from her house during mid night hours.
iii) Few tribal youth have been severely assaulted within and outside Kinjirkela Police Station by few antisocial elements, who are engaged in carring on illicit liquor trade etc. Those tribal youth have been sent to jail on falsely created criminal cases that never happened. Our complain in the matter sent to The National Commission for Schedule Tribe is enclosed herewith.
You will be surprised to note that the so called investigation report that has been sent to the National Commission for ST, Govt. of India, exposes more that what it tries to hide. All those tribal youth have been stated to belonging to Schedule Castes and while those who have been named as accused, suffered severe skull injuries,. No mention has been made about their hospitalization and on the contrary, they have been termed as absconders and so on. Police have managed to send to jail many tribal youth on false charges of attacking police station. Who will believe the planted story of the OIC of Kinjirkela Police Station. Copy of the complain is enclosed herewith along with the letter of the National Commission for Schedule Tribe and copy of report of the S.P. Sundergarh in the matter.
Besides the above, there are instances of the following at Sundergarh District in the matter of
(i) Violations of the constitutional rights of the tribals in the name of industrialization.
(ii) Dishonoring the wishes of the villagers passed through the Resolutions passed by the Gram Sabha at Panchayat level.
(iii) Economical losses and humiliation to live like a second class
citizen in my own village due to the pollution emitted by Shrishti Ispat Sponge Iron Ltd., at Budakata, Shree Balaji Metallic Pvt. Ltd at Khairban, OCL’s Sponge Iron Plant at Jampalli and many more can be seen at Sundergarh, Keonjhar and Jahrsuguda District.
As assured by you, we look forward to the visit of House Committee to all those affected areas where above-mentioned incidents have taken place so as to repair the demoralized moral of the poor and downtrodden tribals. Your visit will certainly add to the chances that the justice will be done to the victimized Adivasis.
Looking forward to getting your full support and co-operation in the matter.
Thanking you and with regards,
Yours truly,
For Tribal Welfare Society
Director – East Zone Affairs. And
General Secretary, Central Committee.
Encl: As stated above with Index.
Kendu Leaves collection Makes State Rich and Tribals poorer
PRAVIN PATEL
Panchayati Raj governance and Forest Rights Act can help the tribals to revive their economic status, writes Pravin Patel, director, Tribal Welfare Society and Public Eye Swiss Award 2008 nominee
More than 10 lakh (1 Million) tribals and other forest dwellers are engaged in the Kendu Leaves (KL) collection in the state of Odisha. Kendu leaves trade in Odisha was done by few private contractors who made huge money in this lucrative trade. Those private contractors were so powerful that they successfully managed to interfere in state politics but also got the ministers of their choice. The interferences were tolerated in exchange of huge donations to political parties to buy favours. The instability of the Odisha governments during 1960s is largely attributed to the powerful Kendu Leaves lobby.
Immediately on coming of the late Indira Gandhi to the centre stage of National Politics; through the then chief minister late Nandini Satpathy nationalized the trade in the year 1973 to get rid of the private contractors. Big claims were made that KL contractors are exploiting poor tribals, as such to save them from being exploited, the trade will be conducted by the state
With change in the players, Private traders' monopoly has been replaced by the Forest Department monopoly. Since 1973, a long period of thirty five years has passed. It can be safely assumed that the plight of the tribals must have changed within this period in the KL trade that generates annually about Rs 500 crore (INR 50 million) from average production of five lakh quintals. We were shocked to see that the plight of the tribals has on the contrary worsened. Poor tribals have become pauper. The very fact that almost half of the population of Odisha lives Below Poverty Line (BPL), which must be 80% or more amongst the KL pluckers. Besides acute poverty, lack of quality education, corruption in Public Distribution System (PDS) and lack of health care has resulted in malnutrition that has pushed them to their premature death.
Despite change in policy that promised them to bail out of exploitation, despite spending huge money on several developmental heads, if this is the reality, Questions are raised why? Whom to blame? What can be done? To find answers we need to look at reasons one by one.
The first reason is the dictatorial attitude of the forest officials who have replaced private traders. KL activities have been a milking cow particularly for field staff like for rangers and forest guards. Fictitious purchases; under counting of leaves and various tricks played in quality gradation of the processed leaves are some of the sources of eating away the money.
The other reason is the overall neglect of the tribals by the state in practicing anti-tribal policies for the comforts of Biri manufacturers, Industrial and Mining Corporations. It is shocking to know that while Iron Ore, Bauxite and other natural mineral wealth are allowed to be virtually looted at laughably low rate of royalty, for example Iron ore, it is only Rs. 4/- at the lowest and Rs. 27/- per MT (International market rate is about Rs. 10,000/-)
Bamboo is another example. Under management of OFDC, Bamboos were supplied at a highly subsidized rate to paper mills. When the paper mills can be supplied bamboo at only 49 Paise each piece, why tribals needs are ignored? Why tribals are harassed on false cases despite those tribals need Bamboos to weave baskets and make other products for livelihood. Even the artisans' needs are ignored
Games played in Kendu Leaves trade
State share of earnings in shape of royalty and taxes is more than 40%, where as 10 lakh pluckers gets only about 25%.
The above facts makes it amply clear that the state policies are drafted to help those who can buy favours where as the poor tribals are denied their legitimate rights. State must accept the fact that its wrongly cultivated policies have failed to save tribals from being exploited or improve their economic and social conditions. The result of thirty five years of failed policy has pushed them to absolute poverty.
Newspapers have reported of selling children and wives at Bolangir district, where KL of best quality is collected that fetches highest rates in the country. Exporters compete with each other to buy those leaves at the highest rate in the country, those who collect the leaves are extremely poor.
The story is not limited to Bolangir only. We find in newspapers reports about protesting tribals from many areas of the state that even after months payments to the KL pluckers are not made. KL pluckers mortgage their cards to the money lenders, who collect the money on behalf of the pluckers. Delay causes further losses of high rate of interest charged by the money lenders.
It is painful to note that the Kendu Leaves Coordination Committee chaired by Chief Secretary, finds it difficult to even increase a paisa or two per bundle of 20 Kendu leaves by stating that any increase in purchase price will make the KL business less lucrative. Even when the decisions are taken with great difficulty, it is publicized as if great favours done on KL pluckers. This exposes the mentality of the state who exploit tribals as a tool to earn Rs 500 crore but even a token increase in KL purchase prices, their eyebrows are raised. From the air conditioned comforts they expect tribals to defy scorching summer sun with mercury touching 48 degree to collect KL.
From the above facts, we can conclude that monopoly of the state, dictatorial attitude of the forest officials at the field level, inept police to crack on illegally operating money lenders and lack of accountability at all level by the concerned officials is the root cause of misery to the tribals. The very purpose to save the tribals from being exploited at the hands of private contractors for which the trade was nationalized stands defeated.
The present policy practiced from last 35 years has failed. When there is a need to completely change the policy, tribals are lured by playing cheap vote bank politics by promising to give them shoes / chappals for free. Nationalization of Kendu Leaves is a glaring example to demonstrate how blindly a failed policy can be pursued so long for political games and satisfying Biri industries. Where the tribals should go?
After a long struggle to get justice by the tribals and civil society organization, it took 60 years to the Indian parliament to admit the 'historic injustice' done to the Scheduled Tribes and forest dwellers to get rid of the corrupt forest and revenue department officials. "The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006" finally recognized their rights, but the rules were framed much later i.e. w.e.f. January 1. 2008. The delay in implementation of the act is largely due to the strong opposition by a certain group of people who desperately tried their best to see that the tribals are not given their rights.
Forest rights act besides recognizing ownership of occupied land in the forests and provides rightful access to collect 'minor forest produce', including Kendu leaves, Bamboo, Honey besides other minor forest produces. FRA provides unrestricted collection of minor forest produces by tribals and other forest dwelling communities. It also allows one time processing and sales to whomsoever they wish. However, in absence of clear rules, some confusion remains on how to transport the material from the forest to the customer's destination.
As per a report, Odisha has lost more than 25% of its forest cover during the period 1972 to 1999, which is much before the Forest Rights Act has come in to force. This further exposes the hollow charges of the officials who have not only failed in their duties to protect the forests. Is it a secret that timber and forest mafias have eaten away most of the forests including the Simlipal reserve forest! The so called plantations done by the forest department has largely remained on paper only. Money is spent but trees are not seen in itself; complains of corruption in the department. Where has the money gone that has been spent in the name of plantations?
Government policies and institutions have failed to raise the economic condition of the tribals all these years. Panchayati Raj governance and Forest Rights Act are two legal provisions that empower tribals to shape their future and improve socio economic conditions. A beginning has been made but lot more needs to be done. There is an urgent need to spread awareness amongst tribals about their rights on forest produces including Kendu Leaves; Bamboo; Sal Seed and other forest produces so that they can demand justice and start using those rights for their speedy economic recovery.
Pravin Patel
SAFEGUARDS AVAILABLE TO TRIBALS UNDER THE CONSTITUTION OF INDIA
SAFEGUARDS AVAILABLE TO TRIBALS
UNDER THE PROVISIONS OF CONSTITUTION OF INDIA
I. Educational & Cultural Safeguards
Art. 15(4):- Special provisions for advancement of other backward classes (which cludes STs);
Art. 29:- Protection of Interests of Minorities (which cludes STs);
Art. 46:- “The State shall promote, with special care, the educational and economic interests of the weaker sections of the people, and in particular, of the Scheduled Castes, and the Scheduled Tribes, and shall protect them from social injustice and all forms of exploitation,”
Art. 350:- Right to conserve distinct Language, Script or Culture;
Art. 350:- Instruction in Mother Tongue.
II.Social Safeguard
Art. 23:- Prohibition of traffic in human beings and beggar and other similar form of forced labour;
Art. 24:- Forbidding Child Labour.
III. Economic Safeguards
Art.244:- Clause(1) Provisions of Fifth Schedule shall apply to the administration & control of the Scheduled Areas and Scheduled Tribes in any State other than the states of Assam, Meghalaya, Mizoram and Tripura which are covered under Sixth Schedule, under Clause (2) of this Article.
Art. 275:- Grants in-Aid to specified States (STs&SAs) covered under Fifth and Sixth Schedules of the Constitution.
IV. Political Safeguards
Art.164(1):- Provides for Tribal Affairs Ministers in Bihar, MP and Orissa;
Art. 330:- Reservation of seats for STs in Lok Sabha;
Art. 337- Reservation of seats for STs in State Legislatures;
Art. 334:- 10 years period for reservation (Amended several times to extend the period.);
Art. 243:- Reservation of seats in Panchayats.
Art. 371:- Special provisions in respect of NE States and Sikkim
V. Service Safeguards
(Under Art.16(4),16(4A),164(B) Art.335, and Art. 320(40)
(1) The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act,1989 and the Rules 1995 framed there under.
(2) Bonded Labour System (Abolition) Act 1976 (in respect of Scheduled Tribes);
(3) The Child Labour (Prohibition and Regulation) Act1986;
(4) States Acts & Regulations concerning alienation & restoration of land belonging to STs;
(5) Forest Conservation Act 1980;
(6) Panchayatiraj (Extension to Scheduled Areas) Act 1996;
(7) Minimum Wages Act 1948.
Sunday, February 7, 2010
Extracts of a large full page interview of Ratan Tata published in the main daily paper, IL CORRIERE DELLA SERA.
Extracts of a large full page interview of Ratan Tata
published in the main daily paper, IL CORRIERE DELLA SERA.
(07.02.2007, pag 27, full page)
Extracts from the Interview
Tata/Fiat? A strategic alliance. We will start from the ‘low-cost’ Champion of spiritual capitalism: ‘Wealth must be shared with the people’
By Danilo Taino, who previously published a couple of enthusiastic articles about what he calls “capitalismo d’assalto” (“energetic capitalism”) featuring ‘new Shining India’.
“For the global markets he is the man of the moment… (in connection with the Corus acquisition, the largest Indian one, $ 11 dollars, ever attempted abroad)… and he is now a key figure for
The journalist goes on sketching in short the man:
“69 yrs, heir of a Parsi family of iranian origins, that over the yrs was able to build in India a conglomerate that goes from cars to steel, from tea to the hotels, from HT consultancy to mobile phones, in this interview Ratan Tata has agreed to speak about the history of the partnership with Fiat, from its initial steps; and about its development in the future. A relationship that he defines as ‘strategic’. As for his view on capitalism: he underlines his enlightened, so-called “spiritual” approach, to business”.
Questioned about what will change in Tata after the acquisition of Corus, he answers that
“something will change, from a turn over of $ 23 billion last year, we’ll be beyond $ 40 billion: we will be more international, with a stronger presence in
As for the possible decrease of engagement in the Motor Sector:
“The Motor sector has always been not less important for us than the steel sector (…) if the steel is our raw material, the brand and public visibility come from the Auto sectors, from cars.
“Talking about cars, how did your partnership with Fiat develop?” the interviewer asked at this point.
“It came with the fact that at some point Luca Cordero di Montezemolo (Fiat President) was in
“And why did you decided to accept?”
“For two reasons. 1rst Jrd Tata was a great friend of Gianni Agnelli (the late Fiat supremo, and a glamorous figure during Italian post-war period), therefore it was a friendship between families that I wanted to honour. 2nd: I considered that Fiat was responsible for the beginning of the motor industry in so many developing countries like
“Such a risky decision” is the Interviewer comments at this point “
Fiat was in those days breaking a deal with General Motors, it was in deep crisis!”
“For us it was mainly an emotional issue” answers Ratan Tata magnanimous. “Tata is a group that never refused to help a competitor when he was in difficulty. (…) I considered at that point a completely different set of questions : how could we help each other? How to build platform in common? How to share the individual technologies with mutual benefit? And how could it be possible to develop a market in the interest of both?”
At this point the crucial question:
“Could Fiat be in partnership also for the project of car for the masses (sic), the famous One Lakh Car, the 2000 Euros Low-cost car?”
Answer: “Sergio Marchionne (Fiat General Manager) seems very interested, he believed that through Fiat’s channels this car could be sold in
“What sort of philosophy is behind this 2000 Euros car?”
“
We explored the feasibility of this idea for a couple of years: a scooter with four wheels? A differently assembled scooter? At the end we decided to come out with a new project, starting from scratch.”
And here the crucial question: “What about the production facilities?”
“We will produce it for the 50% in a new plant in
Last but not least about philanthropy:
“Yours is a group famous for being a workplace where workers are treated better than anywhere else: the children of your employees had free school going back to 1917, how can it be possible?”
“In our family we always believed that the wealth has to go back to the people. It has been for us a main pillar of behavior over the centuries. The 65% of Tata Sons is owned by philanthropic funds: therefore, also the 65% of the dividends goes in favor of various projects, from education to medicine, to the general betterment of lifestyle of the people, in terms of donations. In total: 45 million dollars, last year. On top of that: 85 million dollars given away directly from the various branches of the conglomerate.”
“And nobody ever protested, among your Indian investors?” is the
“Never from
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TRIBAL WELFARE SOCIETY (HO: New Delhi ) Zonal Office (East Zone) [Covering Chhattisgarh, Orissa, Jharkhand and W. Bengal]...
