*Published: 22:45 IST(28/11/2007) *
**
*Anti-industry movements in tribal areas have gained momentum, especially
with no uniform policy on the allocation of land for industries in the
state.

The Hindustan Times carried out a reality check on project costs, capacities
and land requirements of several big steel and aluminium plants coming up in
the state. For example, both South Korean steel major Posco and
Arcelor-Mittal have signed MoUs with the Orissa government for constructing
12 million tonne per annum (MTPA) steel projects in the state.

Although the capacities for both the Posco and Arcelor-Mittal projects are
same, Posco has asked for 4,000 acres of land, while Arcelor-Mittal has
asked for 8,000 acres.

Similarly, Aditya Alumina (Hindalco) has signed a MoU with the state
government to set up a 2,049-acres project in Rayagada district at an
investment of Rs 5,000 crore. But the Vedanta Alumina project in Lanjigarh
block of Kalahandi district with a lower investment of Rs 4,000 crore has
asked for more land than Aditya Alumina. Vedanta wants 2,278 acres.
Discrepancies like this are endless.

Industries minister Biswa Bhushan Harichandan told Hindustan Times, "There
is no fixed criteria on how land is allocated to the industries. Technical
experts fix land requirements after going through project proposals."

Bhakta Charan Das, convenor of Green Kalahandi, which is spearheading the
agitation against Vedanata Alumina's plant in Kalahandi, said: "Vedanta has
asked for excess land and the same has been granted by the state government.
Excess land results in extra displacement play a crucial role in
anti-industry protests. Land requirement in some cases are being decided in
an arbitrary manner."

A senior official involved with land acquisition said: "We asked
Arcelor-Mittal officials why they need 8,000 acres when Posco was setting up
a similar project on 4,000 acres. They told us that since the MoU has
already signed to hand over 8,000 acres of land to Arcelor-Mittal, we should
stop raising any further questions."

Sources in Arcelor-Mittal said, "There is no excess demand for land. As per
the MoU, 6,000 acres would be required for the plant, 1,000 acres for the
captive power plant and another 1,000 acre for the township."

The draft National Tribal Policy circulated by the Union Ministry of Tribal
Affairs in 2006 provides answers on why companies seek excess land to set up
industries especially in tribal areas. "Since tribal land is generally
non-transferable, the land markets are underdeveloped and the cost of
acquiring land in tribal areas is extremely low, the rate of compensation is
inadequate, usually based on national market value. The difference in the
cost of acquisition of the lands and the subsequent value of the land in the
zone of influence after implementation of the project is enormous. The value
of the property goes up substantially due to direct/ indirect downstream
benefits from the project. This encourages the tendency to acquire land in
excess of the requirement," the draft policy says.*
**
hindustantimes.com/StoryPage/StoryPage.aspx?id=bc27d010-ba51-4f3a-a405-1050715c1191&&Headline=No+yardstick+for+industrial+land+allocation+in+tribal+areas


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