Mittal India to use own R&R package for Orissa plant

Mittal Steel India, which will require 8,000 acres""a mix of government and private land""in Keonjhar, Orissa, for its proposed 12 million tonne plant, has decided to develop its own rehabilitation and resettlement (R&R) package in line with the guidelines set forth by the state government's policy.

Sanak Mishra, chief executive officer (CEO), Mittal Steel India said, even though it was not part of the memorandum of understanding signed with the Orissa government, the company would come out with its own R&R package. "It has become a requisite given the scenario," he said. The company would appoint an agency to work on the package by the end of the month.

However, the move was not linked to the Posco hostage crisis, where two of the company's executives were made captive by villagers of a gram panchayat last week as they did not want their land to be acquired.

Mishra said, "We are watching the situation and learning from it." The agency would study the demography, income generation possibilities and income aspirations of the people at the project site. The 8,000 acres included 1,000 acres for the captive power plant and 1,000 acres for the township. The study would be completed in five months' time. The Orissa R&R policy also features convertible preference share as one of the options for compensation.

The policy states that at the option of the displaced family and subject to the provisions of relevant laws in force for the time being, the project authority might issue convertible preference shares or secured bonds up to a maximum of 50 per cent out of one time cash assistance.

Mishra said he was not sure whether the people would understand the concept of equity. Mittal Steel has appointed an Orissa-based company to collect the land revenue records to determine the extent of government and private land. There were patches of forest land too.

The process would take five months, said Mishra. The arrangement is that the Orissa government would acquire the land for the company. However, in the case of Posco, the state government had encouraged direct negotiation with the displaced villagers after prolonged problems on acquisition. Mishra said, direct land acquisition would be the last option for the company because there were too many people involved.

Mittal Steel has also shortlisted a consultant for drawing out the detailed project report, which would be complete in a year's time.