The POSCO Issue:

POSCO is the largest FDI in India and provides an opportunity for any mineral rich State. "Orissa is poor despite its vast natural resources" has become a favourite refrain of all and sundry. A global economic boom is noticeable all round as never before. Indian economy, too, is growing rapidly. This is the best time for Orissa, rich in mineral reserves, to harness these resources to take advantage of the high international price /demand for metals and convert natural resources into actual wealth. In this context, POSCO and other mega mineral based industries offer great opportunities for the State.

Of course, the process of establishing mega ventures should be all-inclusive as Ms. Kiran Bedi has rightly stressed and should address, satisfactorily, issues like environment, rehabilitation and optimal State-interest, I tend to agree with Prof. Indiresan that despite being capital intensive, the direct and indirect benefits of a mega venture would be considerable.

However, in the State's interest, according SEZ status to POSCO is unnecessary and uncalled for. Similarly, the proposal for exporting substantial quantities of mineral ore is outrageous. Thirdly, if the sourcing of water for POSCO is from Mahanadi irrigation system in coastal Orissa as reported, the impact on irrigated farmlands would be considerable. If these issues are re-negotiated and popular consensus at the grass root level for land acquisition is settled through dialogue and if required by redefining the project area, POSCO would be a good harbinger of the State's progress.

Unfortunately, the situation at the project site, as at Kalinga Nagar for the Tata Steel project, is getting more and more complicated, thanks to the inept handling of the situation. The State is over-dependent on bureaucracy and doesn't seem to encourage grass root political mobilization for consensus building. Why can't local MLAs at Kujang and Kalinga Nagar (both most powerful functionaries of the ruling party in Orissa) and PRI representatives of the ruling coalition work towards grass root engagement of affected people through dialogue and persuasion and force their Govt. to apply correctives, as needed? Clearly, the political/administrative leadership of the State is clueless about this messy situation of its own-making and is caught in the quagmire of ambivalence and inaction.
S. B. Mishra