POSCO WAS TRULY CAUGHT UNAWARES BY THE QUANTUM OF OPPOSITION FOR THE STEEL PROJECT. RECENT TRENDS PROVIDE HOPE FOR A BREAK IN THE DEADLOCK
Since the signing of the MoU on setting up of POSCO’s Indian subsidiary, POSCO-India Private Limited in June 2005, the company has been trying to convince the villagers within the project area that they will be suitably rehabilitated for any kind of displacement. POSCO maintains, “We will rehabilitate fully and in fair manner all categories of displaced, be it form of home, land or livelihood, and sincerely try to give a life better than before. We will implement the Government of Orissa’s Rehabilitation & Resettlement Policy-2006, which is called the best in the country, in both letter and spirit.” The company has taken so many confidence building measures to create a welcoming atmosphere among the people. Some of those are :
* POSCO declared in 2006 that 97% of the total employee strength of the plant will comprise of Indians. It also declared creation of about 48,000 jobs directly and indirectly in the region, and approximately 467,000 man years of employment during the construction phase. POSCO launched vocational training at its own cost to both men and women at the proposed plant site.
* It conducted first surgery camp in Orissa for palate corrections and launched mobile health check-ups.
* The company announced that it will provide one employment to all the original displaced families and also families losing all agricultural land in accordance with the provision of the Orissa New R&R Policy 2006.
* An office in Kujanga has been opened to establish a communication channel and address the concerns of the local residents.
While most of the families of Nuagaon and Gadakujang panchyats supports POSCO project, majority in Dhinkia don’t want the project. As a gesture of goodwill, POSCO has been providing Rs.25 per head every day to members of 72 families from Dhinkia and Govindpur villages living in make-shift shelters due to threat of anti-POSCO activities.
As some headway is being made, it is pertinent to note how R&R issues have led to loss of significant time and money for POSCO and also for India, which badly needs such FDI. Land acquisition remains a sensitive issue and companies have to learn from the experience of POSCO’s paper trail that they must factor in the possible repercussions of such issues when they plan investments for India. And for India to improve its standing on the global FDI front, one hopes that the POSCO project sees the light of day, sooner rather than later.
* POSCO declared in 2006 that 97% of the total employee strength of the plant will comprise of Indians. It also declared creation of about 48,000 jobs directly and indirectly in the region, and approximately 467,000 man years of employment during the construction phase. POSCO launched vocational training at its own cost to both men and women at the proposed plant site.
* It conducted first surgery camp in Orissa for palate corrections and launched mobile health check-ups.
* The company announced that it will provide one employment to all the original displaced families and also families losing all agricultural land in accordance with the provision of the Orissa New R&R Policy 2006.
* An office in Kujanga has been opened to establish a communication channel and address the concerns of the local residents.
While most of the families of Nuagaon and Gadakujang panchyats supports POSCO project, majority in Dhinkia don’t want the project. As a gesture of goodwill, POSCO has been providing Rs.25 per head every day to members of 72 families from Dhinkia and Govindpur villages living in make-shift shelters due to threat of anti-POSCO activities.
As some headway is being made, it is pertinent to note how R&R issues have led to loss of significant time and money for POSCO and also for India, which badly needs such FDI. Land acquisition remains a sensitive issue and companies have to learn from the experience of POSCO’s paper trail that they must factor in the possible repercussions of such issues when they plan investments for India. And for India to improve its standing on the global FDI front, one hopes that the POSCO project sees the light of day, sooner rather than later.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
