Geogrophical location of villages at lohandiguda with distan

Seminar at Raipur. Industrilisation of Bastar for whose development? Tatas or Tribals?

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 with Ratan Tata, President of the larger Indian group.

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 Italy as well (…) for his 50-50 alliance with Fiat that could set the paradigm for Italian industry’s ambition (sic!) in India.”

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 Europe. But for the next two or three yrs Corus will remain separated from our Steel business (…) a special committee will work on this gradual integration.”

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 India with an official delegation from Italy. He approached me, together with John Elkann (Fiat Vice-President) and they asked me whether I could help Fiat to regain some market shares in the Indian market. (…) Quite a strange request, coming from a brand that could be considered a competitor in our same segment of market…” Ratan Tata recalls, adding that he was tempted to say No

“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 India and Egypt. They deserved our help…”

“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 Latin America as well. However, the project is already quite advanced, we are planning to sell the 1rst vehicles in 2008 (…) And there are markets that we could develop in Joint Venture, not only with this small car.”

“What sort of philosophy is behind this 2000 Euros car?”

“India is a country with more than 1 billion people, and 40% are below 20 yrs of age. We have a middle class of 250 million people and perhaps 3-400 millions still live below the poverty line. All these people need a way of transport and till now this need was answered by two wheelers. This idea for a small car came to me the day I saw a father who was riding a motorcycle with his son sitting on the tank and the wife behind him, with another baby in her arms. Why they could not have a more suitable, safer mean of transport…

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 West Bengal (where there are some political problems that Tata minimizes - the interviewer is accurate enough… to add). For the remaining 50% we will encourage the creation of a number of small assembly shops, low cost, all over India. This will be our contribution to the entrepreneurship among the youth of India.”

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 incredulous question from the journalist.

“Never from India (…) only from abroad: outside India they say that money belongs to the shareholders. I always explain that doing in the way we do, there is a minor social pressure on the balance sheets of the companies and (sic!!!) a lesser number of strikes. The plus is evident for us …”

Agreement between Tata Motors Ltd., Government of West Bengal and WBIDC

copy of the agreement to manufacture "NANO" at SINGUR
inked by Tata Motors with Government of West Bengal

Agreement between
Tata Motors Ltd., Government of West Bengal and WBIDC

1. Tata Motors Ltd. (TML) was intending to set up a manufacturing Plant for Automobile Products including "Tata Small Car" to manufacture 250,000 cars per annum on 2 shift basis which could be expanded to 350,000 on 3 shift basis. In addition, it would have several Vendors and act as a mother plant for many aggregates to tune of 500,000 cars. In this connection, TML was considering locating the plant in the States of Uttarakhand/ Himachal Pradesh in view of the fiscal incentive package for the rapid industrialization being made available by the Govt. of India to new Industries in these States which has been attracting a large number of industries to these States. The incentive package in Uttarakhand/Himachal Pradesh consists of:-

(a) 100% exemption from Excise Duty for 10 years.

(b) 100% exemption from Corporate Income Tax for first 5 years and 30% exemption from Corporate Income Tax for next 5 years.

2. The Government of West Bengal (GoWB) is keen to take appropriate steps for rapid industrialization in West Bengal and in this connection wanted to attract some major Automobile Projects to the State. The Government of West Bengal approached TML to persuade them to locate an Automobile Project including the project to manufacture "Tata Small Car" in West Bengal. TML showed interest in locating the plant in West Bengal, provided the State gave Fiscal incentive equivalent to the value of total incentives it would have received by locating the plant in Uttarakhand / Himachal Pradesh. GoWB offered to match the financial incentives in equivalent terms and invited TML to set up the Small Car plant in West Bengal entailing investment of over Rs. 1500 crores by TML. In addition, Vendors supporting the project are likely to make further investment of over Rs. 500 crores.

3. Since then numerous discussions have been held and based on this understanding, GoWB proceeded with identification of various lands for this mega project. Land of approximately 1000 acres chosen in P. S. Singur of District Hooghly was finalized with TML. West Bengal Industrial Development Corporation Ltd. (WBIDC) commenced the process of acquisition of this land. The process was completed with the Declaration of Award under Section 11 of the Land Acquisition Act, and thereafter WBIDC has obtained mutation of ownership in its name in the Record-of-Rights, and conversion of usage of the land from agriculture to factory.

4. WBIDC is in possession of 997.11 acres of land, which has been acquired under the Land Acquisition Act. Out of this, an area admeasuring 645.67 acres will be leased to TML for setting up the Automobile Project including the small car plant, while an area admeasuring 290 acres will be leased to the vendors to this Automobile Project approved by TML (ancillary and component manufacturing units), 14.33 acres will be handed over by WBIDC to WBSEB only for construction of 220/132/33 KV substation and the balance admeasuring 47.11 acres will be used by WBIDC for rehabilitation activities for the needy families amongst the Project affected persons.

5. The terms of lease to TML for the 645.67 acres of land for the mother plant are described below. In addition, WBIDC will provide on lease 290 acres of land to the Vendors selected and approved by TML on payment of Premium equal to the actual cost of acquisition plus incidentals, to be calculated on the basis of the total acquisition cost and other incidental expenses expended by WBIDC or any of its subsidiaries (duly certified by its auditor) averaged over the total land acquired. The lease rental payable per year per acre by the vendors will be Rs. 8000/- per acre for the first 45 (forty five) years and Rs. 16000/- per acre for the next 45 (forty five) years. The initial lease tenure will be 90 years. On expiry of 90 years, the lease terms will be fixed on mutually agreed terms at that point of time.

6. The parties also discussed mutually to finalise the package of incentives required in order to enable GoWB to fulfill its commitment to match in equivalent financial terms the fiscal incentive foregone by TML in Uttarakhand. The Net Present Value (NPV) computation of benefits that the project would have received in Uttarakhand is attached in Annexure I which is agreed to by all the parties. Sample computation of benefits in West Bengal with stated assumptions is given in Annexure II which is accepted by all parties as agreed basis of computation. The NPV is calculated @ 11%.

7. Accordingly, it is finally agreed, in supersession of all previous decisions and agreements in this regard, that for this mega project, the fiscal incentives under Industrial Promotion Assistance in terms of the West Bengal Incentive Scheme (WBIS 2004), assistance towards land cost and interest subsidy in the form of a loan against a quantum of the term loan to be taken by TML for this project will be offered by GoWB as follows:

(a) WBIDC will provide Industrial Promotion Assistance in the form of a Loan to TML at 0.1% interest per annum for amounts equal to gross VAT and CST received by GoWB in each of the previous years ended 31st March on sale of "Tata Small Car" from the date of commencement of sales of the small car. This benefit will continue till the balance amount of the Uttarakhand benefit (after deducting the amount as stated in para 7b and 7c below) is reached on net present value basis, after which it shall be discontinued. The loan with interest will be repayable in annual installments starting from 31st year of commencement of sale from the plant. The loan availed in the first year will be repaid in the 31st year and the loan availed in the 2nd year will be repaid in the 32nd year and so on. WBIDC will ensure that the loan under this head is paid within 60 days of the close of the previous year (on 31st March) failing which WBIDC will be liable to compensate TML for the financial inconvenience caused @ 1.5 times the bank rate prevailing at the time on the amount due for the period of such delay.

TML & GoWB will make best efforts to maximize sale of products from the "Small Car Plant" in the State of West Bengal.

(b) WBIDC will provide 645.67 acres of Land to Tata Motors Ltd on a 90 year lease, on an annual lease rental of Rs. 1 crore per year for first 5 years with an increase @ 25% after every 5 years till 30 years. On expiry of 30 years, the lease rental will be fixed at Rs. 5 crores per year, with an increase @ 30% after every 10 years till the 60th year. On the expiry of 60 years, the lease rental will be fixed at Rs. 20 crores per year, which will remain unchanged till the 90th year. On expiry of 90 years the lease terms will be fixed on mutually agreed terms at that point of time. The benefit on account of land would be calculated as the total land area leased out to TML multiplied by the cost of acquisition calculated in the manner as provided in para 5 less NPV of rent payable during 60 years.

(c) The West Bengal Govt. will provide to TML a loan of Rs. 200 crores bearing @ 1% interest per year repayable in 5 equal annual installments starting from the 21st year from the date of disbursement of loan. This loan will be disbursed within 60 days of signing of this Agreement.

(d) The West Bengal Government will provide Electricity for the project at Rs. 3/- per KWH. In case of more than Rs. 0.25 per KWH increase in tariff in every block of five years, the Government will provide relief through additional compensation to neutralize such additional increase. 8. It is also agreed that the computation of the comparison of benefits in Annexure I and II will be changed if there are any changes in the rates of excise duty and corporate income tax during the next 10 years.

----------------------------------------------------X-----------------------------------------------------

TATA KE REVADI BAT RAHI HAI APNO KE NAM

TATA KE REVADI BAT RAHI HAI APNO KE NAM

By Pravin Patel

As per a report published in a local newspaper published from Jagdalpur, lower level revenue staff of the Lohandiguda area have misused their official position by arranging to get the compensation paid to their relatives despite they are not the lawful owners of the land.

One example to expose the fact is that the persons named here below who all are the relatives of the Deputy Tehsildar and Patwari have managed to get the compensation award in their favour on the government land at Kumhli, even not registered in their name.

1. Jetendra Singh son of Joginder Singh Khasra No. 605
2. Chandra Sekhar son of Joginder, Khasra No. 605 /1G
3. P. Gautam son of Narayan resident of Santoshi Ward, Jagdalpur Khasra No. 536
4. R. Shakuntala Meshram, Khasra No. 507 / 1G
5. Yogita wife of Dinesh Thakur Khasra No. 680

It has also come to our knowledge that these persons are also being favored to get the permanent jobs in the company in return of the undue favours granted to the project proponent to crush the voice of the tribals.

GAMES PLAYED IN THE NAME OF PAYMENT OF COMPENSATION

Many of those who are the residents of Jagdalpur and Narayanpal, and had no land at Dhuragaon have suddenly become the land owners, once the steel plant was proposed in that area. Another interesting fact is that most of those persons are the relatives of the revenue staff officials of state government. Few examples are stated here below to expose the fact:

1. Suraj son of Bipin Behari Das
2. Sushma son of J.Devangan
3. Shanti wife of late K.Devangan
4. Bimal son of Kamal Meshram
5. Bijeta wife of Rajendra Sethia
6. Kundan Meshram
7. Binay Kurup
8. Karuna son of Shivnath
9. Jyotidas wife of Prabudas
10. Priyanka Rani.
11. Satyanarayan son of Bhairam Singh
12. Vikas son of K.Devangan
13. Father James son of Mathew
14. Er. Arjun Rao son of Satyanarayan Rao
15. Vedanta son of Rohini Shrivastava
16. Hargovind son of Bhairam Singh Sethi

Most of the above persons have collected the amount towards compensation in lieu of land but had no record of land ownership before the steel plant was proposed in the area. Suddenly, they have become the owners of the land mostly in sizes of 20 decimals each and have put their claims for getting permanent employment in the proposed steel project.

The matter needs to be investigated to bring the culprits out in public to expose the truth of the claims of the government. While the actual land owners are forwarded to jails, coerced and compelled to receive compensation, the near and dear ones of the district administration officials are making merry of the situation by not only receiving money in the name of land lost but also becomes eligible for getting employment.

The statement of the SDM Neelkanth Tekam that he has not seen the documents pertaining to those land and only after going through the same, will be able to say something.

Great! Mera Bharat Mahan.

• Misuse of official power to pressurize tribals to take compensation:

The said report also further states that tribals of Belar village have openly accused SDM, Jagdalpur Shri Nilkanth Tekam by denying bail to the tribals who have been sent to jail on false cases under section 107, & 116 by stating they he will grant the bail only when the compensation is received by them through their relatives. This is another glaring example of how the official position is grossly misused to harass and pressurize tribals to accept the compensation, though they are not at all interested to receive any compensation since they do not want to give away their land. It is also stated that 29 tribals are in jail under section 107 & 116 since more than one and half month.

It is also pertinent to mention here that the above also includes few of those tribals who were detained on 11-12-07 when they were en-route to meet His Excellency, the governor of Chhattisgarh to apprise him of the excesses committed on them by the district authorities every now and then including clamping of false cases against them and putting them behind the bars for the only reason that they are refusing to accept the compensation despite pressure exercised on them by the district authorities.

It is also further stated that one lawyer Shri Girjuram Kashyap was also arrested and sent to jail only for the fault that he was assisting his clients to prepare bail petitions and other legal assistance. The involvement of the Collector in the matter stands exposed by the fact that when a delegation of lawyers went to his chamber demanding immediate unconditional release, the statement of the Collector was that to do leadership is not the job of lawyer. A lawyer should limit himself to the profession and keep away from taking leadership of others. It would be necessary to remind him that Motilal Nehru, Mahatama Gandhi, Sardar Patel, Lok Manya Tilak and many other great leaders of the freedom movement of India are all lawyers. Even the present speaker of the Lok Sabha Shri Somnath Chatterjee, Arun Jaitley, Kapil Sibbal, Chidambaram, Abhishek Manu Singhvi, and Ravi Shankar Prasad are all very senior advocates as well as senior leaders also. The statement of the District Collector thus exposes his mindset that who ever is helping those tribals who are opposing to give away their land and also helping those persons whose relatives have been pushed to jail for false cases will be dealt with in similar manner, irrespective of wither he is a lawyer, People’s representative, Member of Parliament, Human Rights Activist or any body, no body will be spared if he becomes an obstacle to his designs of any how forcibly acquire land or to say in more blunt language to grab the land of tribals by use of force and misuse of official position.

• Tribals are forced by the administrative officials to receive compensation

As per another report published, Shri Hirmuram Mandavi of Takraguda, has alleged that administrative officers are coercing farmers to receive compensation in lieu of their agricultural land for proposed steel plant.

It is alleged that SDM, Jagdalpur Shri Nilkanth Tekam is misusing his official position to harrash and coerce tribals to receive compensation. He cited few of the examples which are stated here below:

1. Narsingh son of Rukdhar of Badanji was denied the bail of his younger brother who has been in jail. Only on his receiving the compensation, his brother was released on bail within no time.

2. Wife of Lachu Thakur received compensation on being threatned to dismiss her husband from the service.

3. Jahadaram son of Budhram of Belar village was forced by Dinesh Thakur, Patwari on the pretext that he will not give any land papers if they do not receive compensation.

4. Kailash son of Aaitu and also Patiram son of Hidma, both resident of Dhuragaon were blackmailed that if he receives compensation, then only they will be given the land ownership documents of the government land under their occupation.

5. Dumarram son of Budhram of Chindgaon was forced to receive compensation by threatening of one Mr. Patkar who is an employee of the agriculture department, Lohandugda that the land is not in his name and if doesn’t receive compensation, his land ownership rights will not be recognized.

6. Radheshyam Nag, son of Charan Singh of village Badanji whose son is an employee at the education department of the state was paid compensation in the name of his father, on the threat to take compensation or face disciplinary action to dismiss him soon.

7. Munnaram son of Bundi of village by mischief committed by Bimal Meshram who first by taking him in to confidence and then falsely told him that every body has received the compensation and if does not receive now, he will have to make several rounds of the earth but even that he will not get the compensation.

8. Turubai of village Kumhali was threatned inside the jail by the village kotwar Kapurchand to take the compensation.

9. Suresh Kumar Bhardwaj son of Amarsingh Bhardwaj was threatened to be dismissed from service and was thus coerced to receive cheues for the compensation amount in the name of his elder brother, father and Uncle.

The list is long with names of Sukman, Laluram, Lachindhar, and so on with the similar stories. This is the truth of how the compensation money for the land to be lost is being paid but still publicity is made as if those land losers are gladly accepting the same.

===================================================================

Comments also welcome at tribalwelfare@gmail.com

Why so much noise at Singur

Monday, September 15, 2008

MoUs at Jharkhand with Four Lakh Crores &
at Orissa with Five lakh crores investment but
Not a single inch of land acquired

BUT NO NOISE!

Why so much noise at SINGUR
for a comparatively very small investment of only Rs. 1500 Crore that is also not made.

By Pravin Patel, Human Rights Activst.

We see in news channels, in print media, in discussion forums and every where people discussing Singur every where be it in the state of West Bengal, other parts of our country as well as attracting international attention. This can not be a coincidence until and unless something is very special about the repeated drum beating of SINGUR, SINGUR, SINGUR… every where Singur… There is a hue and cry every where that leads one to believe that with exit of Tata's dream $ 2500 / 2000 Euro or Lakhtakia car project from Singur, sky is going to fall on West Bengal. Illusion has been created in the minds of people of the state that the Tatas small project at Singur to assemble / make a small car is the ultimate solution to the acute unemployment problem faced by the state. However, there are many hidden faces that need to be exposed to clear the clouds of confusions. However state government prefers to hide them under the veil of secrecy confirms the very doubt that every thing is not gold that glitters at Singur in the name of producing & selling dream one lakh rupees car.

Ratan Tata himself stated before a year that even at gun pointed on his head, he will not move and is the same person who now says though they have invested Rs. 1500 crore at Singur, they can move. It is to keep in mind that farmers of Singur had never gone to Mumbai, inviting Tatas to take away their precious farm land but the fact remains that the day Buddhadeb Bhattacharya was sworn as CM of West Bengal, Ratan Tata announced the dream small car project to be set up in West Bengal which can not be a mere coincidence. Double talks of Ratan Tata has proved beyond doubt that he is playing black mailing tactics to create further pressure on those persons in the corridors of power who have already bowed down on their knees, both eyes closed and shutters of mind pulled down to ink on the dotted lines. Bankruptcy of their mind stands exposed in trying to justify their deeds allowing Tatas at Singur only to see that Ratan Tata cancels his ticket to the rural hilly difficult interior terrain of Pantnagar in Uttaranchal. Are those people idiots that they can not find difference between Pant Nagar and Singur close on the heels of Kolkatta Metro? What an ordinary citizen can see that there is a hell and heaven difference between Pant Nagar and Singur is not seen by very those people who have bowed down on their knees, mortgaging the interest of the farmers of Singur and played with pride of people of state.

What is the secret of keeping the tripartite agreement a secret document from the very people in whose interest the agreement is inked? The fact is that the government wants to keep its people in dark so as to ensure that truth is never allowed to come out. Is this the way to deal with the people who have voted them to power? Is this not a breach of trust? Even a poor person of the state has right to know what is promised at their back in which he is also supposed to make sacrifices so as to fill the coffers of the house of Tatas. Big games are played behind the back and SINGUR is one such example.

A bare perusal of the secret document, it is found that land is virtually given for free; with only Rs. One Crore to be paid as annual lease rent for the entire land that values not less than Rs. 800 Crores as on date. As if this was not enough, at clause 7 (c), state has promised a loan of Rs. 200 Crore on a laughably low rate of interest of just 1% per annum to be repaid in five equal installments starting from 21st years from the date of disbursement of the loan. Loan is already disbursed. Monetary concessions in shape of differed payment of VAT for 30 years and other sops are extra gifts. As if this is not enough, state has promised to reimburse Excise duty and corporate income tax for 10 years besides promising a fixed power rates at clause 7 (d) that promises to provide relief through additional compensation to neutralize additional increase in power tarrif rates. This is one of the rarest of rate example of the largest investor of the country, a fifth generation industrialist with a begging bowl that is to be filled by the sacrifices of hard earned money of the poor people of the state.

If every thing is fair, Why Tatas have taken shelter of the Hon'ble High Court of Kolkatta to obtain a stay to keep the agreement a secret document. Are the people fools that they do not understand the games played behind their back? If it would have been a document with their 50: 50 partnership with Fiat of Italy, or agreement with vendors who are going to supply spares from out side Singur, or bankers it is a different matter altogether where secrecy can be linked with business but state being a welfare state, inks a document in the name of development of the state and its people in the largest democracy of the world, people are not allowed to know what is promised by their government, to whom they have voted to power. Great !!!!!Keeping things secret further confirms the doubt that even dipper conspiracy has been hatched. What are the hidden costs and at what consequences on the people of the state? Government being a welfare state can not behave as an agent of any private corporation, as is demonstrated at Singur. Creditability of the government of West Bengal, more particularly of the Chief Minister and Industries Minister is at the lowest as both of whom have totally failed to protect strategic interest of the state and its people.


Comparatively small investment of only Rs. 1500 crores, (though actually it is much less) Tata Motors, will hardly employ 500 persons is not a solution to the huge unemployed problem that the state is facing. It is surprising to see lot of noise is made in the matter of Singur as if the Sky will fall on Singur or State if Tatas finally decides to move out. Tatas know the problems in those states who invite him are much more and difficult. Five crore worth MoUs at Jharkhand, but not a single inch of land could be possessed. What has happened to the survey staff of Bhushan Steel, close to Tatanagar is seen by every one media. They had to bite their shoes and paraded. At Kalinga Nagar Tatas are not able to put a single brick; At Chhattisgarh also, they are sailing in extreme rough weathers. POSCO with Rs. 52000 Crore investment is trying hard to even enter those areas on which they have set their eyes but have failed time and again. Tatas knows much better than any body else how difficult the situation is elsewhere. National Highway 200 at Kalinga Nagar in Orissa was totally under seize for over 14 months; Economic blockade continued even after those 14 months. Though this must be a world record, hardly any noise was made outside the state. Few days of democratic agitation at Singur on express highway saw people from all sections of society, crying and shouting at top of their voice, as if the future of Bengal is sold out. Sky is going to fall on West Bengal if Nano is born outside the state. This raises another question, why people of the state and more particularly the youth are under illusion?


Tata's Rs. 10,000 crore green field steel plant project has also run in to difficult waters at Bastar in Chhattisgarh state. Tribals have strongly protested to give even an inch of their land. They are firm in their determination to resist any move of the state to forcibly displace them. No body should be surprised if another Nandigram or Kalinga Nagar at Lohandiguda is repeated, if state tries to act heavier on its own people. But no noise.


Now finally, there are confirmed reports that 1000 Nanos are all set to be born at Tata Motors Pune Maternity Home that raises the curtain of another part of the drama. This may be a political gimmick to impress upon the people of West Bengal that we did it every thing, but farmers and few political persons who are opposed to industrialization, to the growth of the state, those who oppose for the sake of opposing. If the state plays game to create a similar impression in the minds of the unemployed educated youth, we should not be surprised. The famous proverb comes in my mind, " One wrong spoken by 100 persons, makes others to believe it as right. This is the reality of Singur.


People of the state of West Bengal know much better, what is good and what bad, politics apart is. To those who want to see Singur as Jamshedpur should also visit the habitats of the people living in the periphery of that city or meet the workers at Tata Refractory at Belpahar and iron ore mines in Orissa, meet the victims at Tata Salt plants at Gujarat, they will see for themselves the truth. Clouds of illusion will vanish in thin air within no time. There are many stories to expose the truth. It is now up to the government of West Bengal, how they deal with the situation in the long term strategic interest of the state.

======================================================================
Comments welcome

MOCKERY OF PESA ACT MADE IN FULL PUBLIC VIEW AT LOHANDIGUDA FOR TATA'S STEEL PLANT

Tribals of lohandiguda in bastar have fallen victims of state excesses
to translate the pre determined decisions into manufactured mandate
of Gram Sabha by making mockery of PESA 1996,

A report

Pravin Patel

The protests of Tribals of Lohandiguda area not to part with even an inch of their land and the protests and agitation from time to time is to save them from being ruined and fear of being uprooted from their own soil. It is pity to note that though those tribals, despite of being protected by the virtue of special provisions of the constitution, that protests their property rights are victims of the excesses committed on them by the state actors and more particularly the district administration to ensure that the land of theirs is grabbed at any cost to facilitate the construction of a steel plant by Tata Steel company.

The statements issued by the district administration from time to time also makes systematic efforts to give an impression that Tribals have willingly given their consent, to give away their land and have accepted the R & R package of the state. The systematic attacks on all those who are working for the protection of the rights of the tribals of Lohandiguda are labeled as anti developmental forces. Meetings are organized at the office of the District Collector where one sided decisions are taken to facilitate the establishment of the steel plant at any cost. The decisions are taken in the name of development of tribals but at the same time, those tribals from the Lohandiguda are never consulted but on the contrary, they are expected to sign on dotted lines.

Even for a minute we accept that the tribals have agreed on their own, and then questions are raised, why all these agitation and protests, that often results in violence. We need to analyze the facts and explore the situation at the ground level. We begin with what happened on 4th June, 2005.

On this date, Government of Chhattishgarh inked a MoU with the biggest investor of the country, TATAs, for their proposed Greenfield 5 Million Tonnes Per Annum Steel Plant to be set up on 2500 Acres land located at Salepal and Barupata of Bastar District. This MoU is inked by Mr. Shivraj Singh, in the capacity of being the Principal Secretary, Govt. of Chhattishgarh, Dept. of Industries and Mr. M. Muturaman, M.D. of Tata Iron & Steel Company Ltd., in presence of Mr. S.K.Gupta, as the Addl. Director of Industries. Govt. of Chhattishgarh and Mr. T. Mukherjee, Dy. M.D. of Tata Steel.

The doubts on the role being played by the state government, working as the agent of Tata Steel grew in to suspicion since the state government kept the MoU, a secret document. Even its contents were not disclosed to the people or their elected representatives. Right to Information Act, 2005 also explored but in vain. If there was nothing in the MoU that goes against the interest of the people of the state, why the contents are not disclosed?

The doubts gained weight by the fact that though the MoU speaks of 2500 Acres of land to be acquired at Salepal and Barupata, in Bastar, the actual land acquisition process starts for over 5300 Acres of land at 10 villages of Lohandiguda area. The famous tourist place in shape of Chitrakut lies at the dead end of the road. Department of tourism also has not objected. It is also interesting to know that for a bigger 6 Million Tons per Annum steel plant, the same Tata Steel has inked a MoU where also land requirement is stated as 2500 Acres, where as the company is allotted less than 2000 Acres. Naturally for a smaller plant at Chhattishgarh would require less than 1900 Acres of land then from where this 5300 Acres has jumped in? Where is the home work done by the bureaucrats who have inked the MoU? Can we take it for granted that without any application of mind, bowing down to the knees of a private industrial house, our bureaucrats have signed on dotted lines? The subsequent actions of the district officials to forcibly uproot the tribals at Lohandiguda area confirms the doubt as all sorts of gimmicks are played to push out those poor tribals, against their will, even though that much land is not required.

Tribals of the 10 villages of Lohandiguda area made it very clear that they will not part even a single inch of their land, nor are interested to get displaced. Fact is that those tribals also have legal protection on their side, in shape of the constitutional provisions as laid down under the Panchayat Extension of Scheduled Area Act, 1996, known as PESA Act. As per the provisions of the PESA Act, tribals enjoy extra ordinary powers to protect their interests as their approval through a Gram Sabha is mandatory. The rules also lay down the norms and modalities of how the gram sabha are to be held. However, making mockery of the said provisions, government made repeated attempts to any how get the mandate of the tribals through the Gram Sabha. The first attempt failed. A second attempt was made. This also failed. State actors became furious, as they wanted to ensure that the mandatory resolve of the tribals must be secured at any cost.

Sweeping changes were made in the district administration by bringing in a bureaucrat with a single point agenda to get the pre determined decisions translated in shape of a resolution duly passed by the tribals at the Gram Sabha, that they are ready to give away their land for setting up of a steel plant on their land.

While government and the agents of the Tata Steel company tried their best to sell the day dreams to tribals that with the proposed project of Tata Steel Company in their area they will be running fast on the road to their economic development. An impression was created amongst the tribals that with the industrial development, their area will also develop. Even the R & R policy of the state was sold to them as the best in the country. But the tribals were not in any mood to compromise their long term strategic interests. The example of what has happened to their displaced brothers and sisters at NAGARNAR was in front of them. They also heard the stories of brutalities unleashed on the tribals at Kalinga Nagar in Orissa that took away the precious lives of 13 tribals and causing serious bullet and other injuries to many.

For tribals, this is not a question of development versus displacement; it is a question of a project that is going to uproot them and against their will. They were worried to even think of their uncertain future and loss of livelihood. They were expected to convert themselves in to a daily wage earner from land owners. They worried as why they are expected to get them changed from farming activities and to learn other trades that they are not interested nor are capable of doing. Those poor tribals are not entrepreneurs that they can manage the cash they receive against the land. But what was important is not what they think but what is going in the minds of the district administrators and the project proponent, who wanted those tribals to be driven out at any cost to ensure that their land is acquired in the name of setting up of a steel plant.

With changed district administration, a third attempt was made. This time, it was well planned to ensure that no civil society organizations, Human Rights Activists or those social activists working for the protection of rights of tribals are kept away. The villages where gram sabhas were to be held were fortified. Barricades were erected on all the roads to block the entry of the people. Only those persons were allowed who were considered to be working for the interest of setting up of the steel plant and in favour of the land to be forcibly acquired. Leaders of the political parties and other private musclemen type of people took the centre stage. Armed police took the control and under barrel of gun, the predetermined decisions of the government was managed as if the tribals have resolved at a gram sabha, as per the norms and legal requirements as laid down under the PESA Act, 1996. If some one wants to learn how to make mockery of the PESA Act, the area was a best exhibition ground for them. Despite of all the drama, district authorities could manage only at 8 Gram Sabhas and their attempt failed at two villages. A fourth attempt was made and there also against the wises of the tribal, the drama to make mockery of the PESA Act was played again, to show off, that at last those tribals have also paved way for the plant.

The story doesn’t end here. The subsequent actions of the government also faced severe resistance of the people. A massive rally of the Adivasi Maha Sabha at Jagdalpur and clamping of false cases on those who took leadership initiatives are also part of the excesses committed by the state. Even the local officials have been pressed into service to see that the cheques of the amount of money in lieu of land gets deposited in the bank accounts of the those whose lands are targeted to be grabbed in the name of acquisition. Those tribals protested but who bothers when the very people who are constitutionally duty bound to protect their interests are themselves indulging in unleashing harassment on them. Even one advocate who is also from the area was also put to jail for his only crime that he was giving legal advice to the tribals in whose account the money was forcibly deposited. Tired of all such actions, more than 100 tribals in two buses were en-route to Raipur to submit a Memorandum to His Excellency, the Governor of Chhattishgarh. Worried about the out come of such meeting of the tribals with the constitutional head of tribals in a state, the authorities immediately swung in to action. Police raided both the buses and took it under their custody. RTO was summoned from his residence, where he was sleeping in the night hours to seize both the buses. All the tribals were forced to sit at the police station through out the night and detaining 34 of them who took leadership initiatives. Besides the state actors, there are a number of persons who are acting as fiddle to the district authorities and project proponent company to silence any voice that speaks about the rights of the people. We now see the statement coming in news papers that a Hon’ble Member of Parliament will not be allowed to reach Lohandiguda. This is what is happening in the largest democracy of the world.

Other related issues:

LAND: Lohandiguda is just the beginning. Many more tribals from other areas of Bastar are also required to move out. The land required for captive iron ore mines; for captive coal mines; for captive Lime stone mines; for captive dolomite mines; to lay private railway lines and construction of private roads linking those mines with the plant; for construction of weirs at rivers and pump houses to pump water from the rivers to the Steel plant and Mines; for laying of service pipe lines and for power transmission lines.

WATER: This is not the end. Company is promised to allow exploitation of 35 Million gallons of water per day to be met through by the exploitation of river waters over which the company is allowed to construct weirs. For mining and allied operations, as well as townships to be established, government has assured to allocate the company to meet its requirement by exploiting any suitable source (s). The guaranteed water supply from local rivers is going to threaten the drinking water sources and create problems for farmers at Bastar region.

Time Schedule to arrive at full operation: The plant will come in two stages. The first state of 2 MTPA is likely to come up in 48 to 60 months from the date of receiving all clearances and the second phase will take next 36 to 48 months from the date of completion of first phase. Thus to arrive at full operation, company is going to take up to 9 years from the date of getting all clearances. 2007 is already over. The land acquisition is in great dispute. Even if we take middle of 2008 to get all clearances, it will not be before middle of 2017 at the earliest when the full operation of the company will take place. Company says in its MoU that company will employ large work force at full operation.

It must be remembered that over 25% of the total population of tribals in the country have already been displaced. Many more are going to join them at Bastar, the way the present mind set of the state government is seen. Exploitation and intrusion in to the rights of tribals taking benefit of their poverty and illiteracy, in it self invites attention of all those social and human rights activist to stand with those poor persons who are the victim of the state oppression in the name of their development.

Pravin Patel
Human Rights Activist

Comments are welcome at tribalwelfare@gmail.com

MoU betwen TATA STEEL and GOVERNMENT OF CHHATTISGARH on dated 4th June,, 2005

Reproduced version of MOU
inked by Tata Steel with Govt. of Chhattisgarh

MEMORANDUM OF UNDERSTANDING

between

THE GOVERNMENT OF CHHATTISGARH

and

The TATA INRON AND STEEL COMPANY LIMITED

at Raipur

dated 4th of June, 2005

This Memorandum of Understanding is made on the 4th day of June 2005 between the Government of Chhattisgarh on the one part and the Tata Iron and Steel Company Limited on the other part.

1. The State of Chhattisgarh endowed with abundant mineral resources and adequate water resources, has immense potential for industrial development. The Government of Chhattisgarh recognizes the need to safeguard their long-term strategic interests along with the State’s environment and culture, while embarking upon a path of rapid economic growth. The Government of Chhattisgarh is, therefore, desirous of creation of a favourable investment opportunity of facilitating the setting up of industrial ventures in the State by responsible corporate houses with proven track records.

2. The Tata Iron and Steel company Limited has its registered office at Bombay House, 24, Homi Mody Street, Mumbai 400 001 (hereinafter referred to as Tata Steel, which expression shall, unless repugnant to the context or meaning thereof, include its successors, executors, administrators, representatives and assignees.)

3. Tata Steel greatly values its association with the State of Chhattisgarh and its people and is keen to strengthen this bond by significantly contributing to the rapid industrialization and economic development of the State. Towards that end Tata Steel plans to set up an integrated steel plant of five million tones per annum capacity in the State in phases. The first phase of the steel plant consisting of two million tones per annum capacity is likely to be set up within 48 months to 60 months from the date of receiving of statutory clearances and the second phase of the steel plant will be set up within 36 to 48 months from the date of completion of the first phase. Tata Steel will submit the timelines for the two phases within 3 months of signing of the Memorandum of Understanding. The steel plant will employ a large work force at full operation and will lead to an even larger scale indirect employment, arising out of numerous services that a steel industry generates. The steel plant will also contribute substantially to the State exchequer both directly and through the enhanced level of industrial activity in the State.

4. The Government of Chhattisgarh and Tata Steel have, therefore, come together to record their intentions through this Memorandum of Understanding (MOU).

5. The proposed steel plant at Chhattisgarh will have a capacity of approximately two million tones per annum in the first phase with a provision of expansion to a total capacity of approximate five million tones per annum at a later stage.

6. This MOU reaffirms the commitment of Tata Steel for establishing an integrated steel plant and the commitment of Government of Chhattisgarh for providing suitable land, iron ore, coal, limestone, dolomite, other minerals required for steel manufacturing at present or in future and infrastructure facilities including required linkages for the purpose.

7. Tata Steel requires the help and co-operation of the Government of Chhattisgarh in several areas to enable it to construct, commission and operate the steel plant. The Government of Chhattisgarh agrees to extend all help and co-operation in the following major areas.

I- Land:

(a) For the purpose of setting of the integrated steel plant and associated facilities, Tats Steel will require approximately 2,500 acres land. Based on preliminary study, Tata Steel has identified the propose site at Salepal and Barupata at Bastar District. In the event any difficulty arises to obtain clearances for the proposed project at the said site, or the proposed site is not found suitable after the detailed feasibility study, the Steel plant would be set up at an alternate location in the same region, as mutually agreed between the State Government and Tata Steel. Any payment made by Tata Steel towards government land, compensatory afforestation, net present value, etc, at Salepal and Barupata would be adjusted towards payments for the land at the alternative location. Private land acquired by the Chhattigarh State Industrial Development Corporation (CSIDC) for the steel project would be transferred to Tata Steel, free of all encumbrances whatsoever. The location and the area for the township will be identified and indicated by Tata Steel to the Government of Chhattisgarh in due course of time.

(b) Tata Steel will communicate the exact details of the required land to Government of Chhattisgarh. The Government of Chhattisgarh will hand over the land to Tata Steel within a period of six to nine months of the receipt of formal application by the State government for allotment of land, free from all encumbrances whatsoever, for construction of the steel plant, allied facilities and township. The required land would be handed over to the Tata Steel on long term renewable lease of 99 years for which a lease deed will be executed and registered as required under the Indian Registration Act. The Government of Chhattisgarh / CSIDC will take expeditious steps to obtain all statutory clearances for the proposed site required under the Environment Protection Act, 1986 and the local applicable laws.

(c) The land identified by Tata Steel at Salepal and Barupata comprises of the following three categories

1) Private Land including some abadi areas:

2) Government land attracting the provisions of Forest Conservation Act

3) Other Government (revenue) land

In respect of Private Land, Tata Steel shall, on receiving written request from CSIDC, deposit the requisite amount as per law with the CSIDC immediately prior to the passing of award by the appropriate authority.

In respect of government land attracting the provisions of Forest Conservation Act, 1980, Tata Steel shall on receiving written request from CSIDC, deposit with CSIDC the amount payable as per rules towards fees, net present value, compensatory afforestation etc, as and when such amounts are required to be paid to the statutory agency (ies).

In respect of the rest of the government land, payment will be made by Tata Steel at the time of execution of the lease deed in favour of Tata Steel for the entire land mentioned in 1), 2) and 3) above.

d) For avoidance of doubt, it is clarified that while the State Government / CSICD and Tata Steel would complete all steps to acquire the land at 1),. 2) and3) above, the actual acquisition and the payment for the land would be made by Tata Steel only upon detailed feasibility being established for the above site and written communication is sent by Tata Steel to the State government to this effect.

e) In addition, the Government of chhattisgarh agrees to make available, land required for power transmission lines, roads, railway lines, water and other service pipelines etc., The cost of land and connected other payment will be borne by Tata Steel.

f) All the land required for this project, shall be allotted to Tata Steel on long term renewable lease of 99 years.

II – Iron Ore mines and coal mines

The Government of Chhattisgarh and Tata Steel recognizes that while State of Chhattisgarh is ideally suited for setting up a coal based steel plant because of availability of iron ore and coal in the State; steel can be manufactured at competitive cost only if captive iron ore reserves are allotted for the project and the project’s coal requirement is available at a cost that will meet the cost competitiveness of the project. The parties to the MOU recognize that allotment of suitable iron ore reserves within the State and availability of required coal reserves for the project are condition precedent for setting up the steel plant.

A. Iron Ore Mines.

a) The Government of Chhattisgarh recognizes that allocation of captive iron ore reserves is critical for the setting up of the steel plant.

b) The Government of Chhattisgarh recognizes that over the 50 year life of the integrated steel plant in Chhattisgarh, Tata Steel will require around 500 million tones of mine able iron ore reserves. The government of Chhattisgarh has identified two ranges, Bailadila and Rowghat for the proposed steel plant and agree to meet the requirement of iron ore of Tata Steel as follows:

1. Recommend, subject to statutory provisions, grant of mining lease in favour of Tata Steel for Bailadila Deposit –I (said to contain geological reserves of approximately 140 million tonnes) or any other equivalent deposit (s) as mentioned herein below.

2. Recommend, subject to statutory provisions, grant of mining lease in favour of Tata Steel for iron ore deposits of Rowghat Deposits (said to contain geological reserves of approximately 250 million tonnes) or any other equivalent deposit (s) as mentioned herein below. The Government of Chhattisgarh will help and assist Tata Steel for getting mining lease over the above mentioned said iron ore deposits.

3. Recommend / facilitate linkage or iron ore from National Mineral Development Corporation to meet the balance requirement, if any.

The State Government of Chhattisgarh appreciates that for the phase one of the steel plant, 200 million tones of mine able reserves of iron ore is required. The State Government would, immediately after the receipt of application for allotment of land from Tata Steel, send its recommendation forthwith for allotment of mining lease in favour of Tata Steel for Bailadila Deposit –I or any other equivalent deposit (s) and so much of Rowghat deposit that the mining leases recommended meet the requirement of the above 200 million tones.

Upon submission of the timelines for the phase two of the steel project,. Or immediately after the commencement of physical work at the site for the first phase of the project, whichever is later, the State Government will send recommendation to the Central Government for allotment of mining leases in favour of Tata Steel for the balance quantity mentioned in 6) 1. and 6) 2. above.

c) The Government of Chhattisgarh will assist Tata Steel in obtaining all clearances, including environment and forest clearances from the State Pollution Control Board, and the Ministry of Environment and Forests, Government of India under the Environment (Protection) Act 1986 and under the Forest (Conservation) Act 1980 for opening up the iron ore mines, laying roads, and constructing townships etc.

d) Tata Steel will invest in plant and equipment for mining of iron ore.

B. Coal Mines

a) The Government of Chhattisgarh recognizes that allocation of captive coal reserves is critical for setting up the steel plant and manufacturing steel at competitive cost.

b) The Government of Chhattisgarh recognizes that Tata Steel requires around 500 million tones of mine able coal reserves, preferably open cast, to meet the requirements of the proposed integrated steel plant in Chhattisgarh. Tata steel is in the process of identifying the coal blocks with the desired quality of coal. The Government of Chhattisgarh agrees to extend to Tata Steel such assistance as may be necessary / required under the applicable law and policy of government of India on the subject, for acquiring the coal blocks identified by Tata Steel, for the proposed integrated steel plant complex in Chhattisgarh.

The assistance of the Government of Chhattigarh would include acquisition of coal blocks and assigning these to Tata Steel, or formation of joint venture directly with Tata Steel or through Chhattisgarh Mineral Development Corporation or in any other manner as permitted by the policy of Central Government in this regard.

c) To fulfill the requirement of coal for the integrated steel plant project, the Government of Chhattigarh agrees to recommend grant of prospecting license/mining leases for captive use over such areas as may be available in the State of Chhattisgarh for this purpose in line with the applicable law and policy of the Government of India for allocation of coal blocks for captive use for the steel sector projects.

d) Until the captive coal mines are made available to Tata Steel, Government of Chhattisgarh will help and assist Tata Steel to secure adequate supply of coal to the proposed steel plant in Chhattisgarh through linkage (s) from coal companies including South Eastern coalfields Limited (SECL).

e) The Government of Chhattisgarh will assist Tata Steel in obtaining all clearances, including environment and forest clearance from the State Pollution Control Board, and the Ministry of Environment and Forests, Government of India under the Environment (Protection) Act 1986 and the Forest (Conservation) Act 1980 for opening of the coal mines, laying roads, rail, constructing township etc.

f) Tata Steel will invest in plant and equipment for mining of coal.

III- Limestone

The Government of Chhattisgarh recognizes that Tata Steel requires at least 65 million tones of limestone reserves to meet the requirements of the proposed integrated steel plant in Chhattisgarh, Tata Steel is in the process of identifying the limestone blocks with the desired quality of limestone. The Government of Chhattisgarh agrees to recommend the blocks identified by Tata Steel, for captive use of the proposed integrated steel plant complex in Chhattisgarh. The Government of Chhattisgarh will grant in favour of Tata Steel mineral concessions for limestone bearing area for the State of Chhattisgarh to identify the required quality of limestone and fulfill the above requirement.

IV- Dolomite

The Government of Chhattisgarh recognizes that Tata Steel requires at least 10 million tones of dolomite reserves to meet the requirements of the proposed integrated steel pant in Chhattishgarh. Tata Steel is in the process of identifying the dolomite blocks with the desired quality of dolomite. The Government of Chhattisgarh agrees to recommend the blocks identified by Tata Steel, for captive use of the proposed integrated steel plant complex in Chhattisgarh. The Government of Chhattisgarh will grant in favour of Tata Steel mineral concessions for dolomite bearing areas for the State of Chhattisgarh to identify the required quality of dolomite and fulfill the above requirement.

V - Other Minerals

The Government of Chhattisgarh agrees to assist/ recommend that Tata Steel be allocated /allowed to acquire mining lease for other minerals required for captive use of the steel plant operations.

VI - Water

a) The requirement of water for the steel plant is estimated at 35 MGD at a capacity of five million tones of steel per annum. The Government of Chhattisgarh agrees to allocate the required quantity of water from any suitable river(s) as identified by Tata Steel, in close proximity to the proposed site. The requirement of water will proportionately increase in line with the increase in steel production.

b) The Government of Chhattisgarh agrees that it will facilitate all required permissions / clearances for the construction of weir on the river source identified by Tata Steel.

c) The Government of Chhattisgarh agrees to give requisite permissions/ clearances to Tata Steel to build necessary infrastructure to pump required amount of water for the operation of the steel plant and township and the Government will grant permission for the same.

d) The requirement of water during the construction phase is estimated at 5 MGD. The Government of Chhattisgarh agrees to allocate to Tata Steel this requirement of water from nearby sources/ground water sources etc.

e) The Government of Chhattisgarh will allow Tata Steel to lay necessary pipelines for supplying water to its plant and township. If additional land is required for the purpose, government of Chhattisgarh will provide necessary assistance. The cost of such land will be borne by Tata Steel.

f) The Government of Chhattisgarh agrees to allocate to Tata Steel the requirement of water for the iron ore mines for mining and allied operations, as well as for townships to be established in these areas, from any suitable source (s) in close proximity to the proposed site identified by Tata Steel. The Government of Chhattisgarh further agrees to facilitate the drawl of the allocated water for this purpose from the identified source (s) by Tata Steel.

VII - Power

a) The Government of Chhattisgarh agrees to arrange for supply of power to the steel plant through Chhattisgarh State Electricity Board (CSEB) / distribution licensee. The requirement for the first phase will be about 322 MVA. The details of the year-wise build up of power requirement will be worked out by Tata Steel and indicated to the Government of Chhattisgarh / distribution licensee.

b) The power requirement at the construction stage is estimated at 10 MVA. The Government of Chhattisgarh agrees to arrange to supply the required power through CSEB / distribution licensee.

c) The Government of Chhattisgarh agrees to arrange for supply of the required power through CSEB/ distribution licensee for the water supply, township and mines.

d) Tata Steel may install a power plant by itself or through a joint venture or otherwise to augment the supply of power to the steel plant and allied activities. The Government of Chhattisgarh agrees to provide all necessary assistance to clear such a power project. The Government of Chhattisgarh also agrees to give Tata Steel right to receive power from CSEB / distribution licensee and distribute the same along with the power to be generated by the power plant to the steel plant complex, Tata Steel/joint venture partner will be permitted to transmit and supply/sell or deal with the power from the power plant, as and when the need arises, to its other units/industries/CSEB/distribution licensee or any other consumers as permitted under the Electricity Act 2003.

e) The power plant proposed by Tata Steel may also use coal for power generation. The Government of Chhattisgarh agrees to extend such assistance / make recommendations for the grant of necessary coal mining leases to Tata Steel, as may be necessary under the applicable law and policy of the Government of India in this regard.

VIII - Railways and Roadways

a) The Durg – Rowghat- Bailadila – Jagdalpur railway line is the essential link for transportation of minerals and it is, therefore, necessary that this link, be established as soon as possible. Government of Chhattisgarh will pursue with the Government of India, Ministry of Railways, for the completion of the Durg – Rowghat- Bailadila – Jagdalpur railway linkage. Tata Steel has been given to understand that the project for the construction of this Railway line forms a part of the plan of the Central and the State Governments. – Rowghat- Bailadila – Jagdalpur railway is taking proactive measures for early commencement of implementation of the approved project.

b) The Government of Chhattisgarh will make available necessary land for railway link from the nearest railhead to the mines and steel plant for transportation of raw materials and finished goods. Tata Steel will pay for the cost of such land as per rules.

c) The Kirandul – Kottavalasa railway line is important for movement of raw materials and finished goods, for the proposed integrated steel plant. The Government of Chhattisgarh and Tata Steel would follow-up with the Ministry of Railways for strengthening and development of adequate rail network, in Bailadila – Vishakapatnam area capable of movement of traffic keeping in view the increase in traffic in this area. The Government of Chhattisgarh will recommend to the Union Ministry of Railways to accord priority for the movement of the goods for the proposed integrated steel plant on this route. Strengthening the railway network for raw materials movement into the steel plant and finished products movement out of the steel plant is fundamental to the economic viability of the steel plant.

d) The Government of Chhattisgarh agrees to allow Tata Steel to strengthen approach roads to the steel plant as well as connection service roads to the iron ore and coal mines.

IX - Monetary and Fiscal Concessions / Incentives

The Government of Chhattisgarh appreciates that for a major steel plant and its associated facilities(i.e. township, mines etc.) such as being proposed by Tata Steel, financial viability is of critical importance. Therefore, the Government of Chhattisgarh agrees that Tata Steel will be entitled to all financial concessions and incentives as per the applicable Industrial Policy Resolution (IPR) of the Government of Chhattisgarh. Tata Steel understands that the concessions available to these projects under the relevant IPR will not be adversely affected by subsequent changes in the IPR.

Keeping in view the special nature of the project, due to its high level of investment, and having regard to the fact that the project is supposed to be set up in the most backward region of the State, the State Government will consider grant of benefits/concessions available under the Industrial Policy of the State Government for a period longer than the period provided for the said policy.

X - Environment

a) The Government of Chhattisgarh agrees to assist Tata Steel in obtaining no objection certificate (NOC) through the State Pollution Control Board for the construction and operation of the plant, the housing colonies, mines, water supply infrastructure, power projects etc.

b) The Government of Chhattisgarh agrees to assist Tata Steel in obtaining all clearances from the Central Government.

c) Tata Steel will arrange to conduct a rapid Environment Impact Assessment (EIA) and detailed EIA and prepare an Environment Management Plan (EMP) for the project. The Government of Chhattisgarh agrees to extend any assistance sought during the time the EIA is conducted and the EMP is prepared.

d) Tata Steel shall install state-of-the-art pollution control equipment and take all possible steps to manage the environment effectively. Tata Steel has been a pioneer in this field and would not only endeavor to continue this effort but would accelerate its effort keeping in mind its pioneering stature.

e) In the event any forest land is required to be diverted for industrial purpose, the Government of Chhattisgarh will make available such Government revenue land for compensatory aforestation as may be required under the law.

8. The area of co-operation mentioned above highlight only the major issues involved in setting up of the steel plant. Other issues, as and when they arise, and sharing of the responsibility between both parties shall be decided through mutual agreement on a case-to-case basis. In general, the Government of Chhattisgarh agrees to render all assistance to Tata Steel and its affiliates in establishing the steel plant and is associated facilities (i.e. township, mines etc.).

9. The Government of Chhattisgarh appreciates that the “House of Tata” is a responsible corporate house with high involvement in employee welfare and social development. The Government of Chhattisgarh therefore, expects that Tata Steel will bring this philosophy to the steel plant project being set up at Chhattisgarh, to ensure the well being of the people of the adjoining areas in particular and the people of Chhattisgarh in general.

10. Any information exchanged shall be kept confidential and may only be used by either party, its employees, consultants (including affiliate companies, employees and consultants) for the purposes of the review and at no time shall the information be provided to the third parties during the period of this MoU or after the expiry of the MoU, unless such information is:

a. In public domain at the time of disclosure to the third party or thereafter enter the public domain without breach of the terms of this MOU.

b. Is already known by the parties at the time of disclosure.

c. Is developed independently and in good faith by or on behalf of the parties for the purpose of this MOU.

d. Becomes known from a source unconnected with either of the Parties hereto without breach of the terms of this MOU.

e. Or disclosed in response to any interrogatory or order issued by any administrative agency, Government body or court provided, however, that whenever possible a notice will be given by the party to other party within a reasonable time.

f. Except as required by law or regulation neither party shall disclose to any third party the content or nature of their discussions without the prior consent of the other party.

11. The Government of Chhattisgarh and Tata Steel agree to meet periodically and inform and update each other on the developments and steps taken by the respective parties concerning facilitation/implementation of the project.

12. The Government of Chhattisgarh with its natural resources will attract industries, especially the steel industry and steel based industries. Establishing a steel plant, however well endowed a State may be with natural resources, is a very challenging task with many complexities in actual implementation. In view of this, the Company entering into MOU for establishing a steel plant will need a comfort that the raw material sources promised and committed for the steel plant is not promised or committed for any other steel project during the pendency of the MOU or completion of feasibility study and firming up the decision to set up the plant, which ever is later. Tata Steel seeks such an assurance from Government of Chhattisgarh and Government of Chhattisgarh assures such a comfort.

13. This MOU is an instrument of understanding and shall be valid for three years from the date of signing the MOU. Further extensions, if necessary, shall be as peer mutual agreement. This MOU will be converted into formal agreements with the concerned agencies/departments of the State Government in due course.

14. If implementation of this MOU and /or performance of any of the obligations of any Party hereto is prevented, suspended, delayed, restricted , and /or interfered with by reason of force majeure, such as but not limited to acts of god, typhoons, storms, tidal waves, earthquakes, floods, fires, accidents, epidemics, strikes, riot, civil commotions, sabotage, insurrection, rebellion, hostilities between nations, war, embargoes, actions by any relevant governments, or any subdivision, instrumentality, entity, and /or agencies of any relevant government or any relevant laws, decrees, orders, rules and/or regulations, and such other similar contingencies beyond the reasonable control of the Party concerned, the Party so affected shall, upon prompt written notice to the other Party, be excused from the performance of its part or parts of this MOU but only to the extent of such prevention, suspension, delay, restriction, and/or interference. In all cases, the Party so affected shall, however, exert its best efforts to avoid, remove and /or forestall such causes of non-performance and to remedy and complete performance with utmost dispatch.

Signed on the date mentioned herein above at Raipur, by the authorized representatives of the parties to this Memorandum of Understanding.

For and on behalf of the Government of Chhattisgarh

S/d
(Shivraj Singh,
Principal Secretary, Industries and Mineral Resources Department)

For and on behalf ofThe Tata Iron and Steel Company Limited

S/d
(B. Muthuraman,
Managing Director)
Tata Steel


Witness
Signature: S/d
Name: S.K.Gupta
Designation: Addl. Director Industries , Govt. of Chhattisgarh


Witness
Signature: S/d
Name: T. Mukherjee
Designation: Dy. M.D. (Steel)
Tata Steel