Orissa, Jharkhand investors add humane touch to funding

The companies, which are eyeing the mineral-rich states of Jharkhand and Orissa, are lending a soft touch to their investment packages with a slew of welfare measures.

Welfare is a natural constituent of the project, given the huge displacement of people involved in such large projects and the consequent hurdles in land acquisition. Also, the projects require immense support from the local people.

While the investments, which have been announced in Jharkhand so far, add up to over Rs 2 lakh crore, those in Orissa amount to around Rs 1.6 lakh crore, excluding the Mittal Steel project.

The welfare measures assume special significance given the dominance of the weaker sections in the two eastern states. In Orissa, 62 tribes account for 22.15 per cent and 93 of scheduled castes make up 16.12 per cent of the total population.

The population in Jharkhand living below the poverty line (BPL) accounts for around 54 per cent of the state's total population.

Mittal Steel India, which has announced a 12-million tonne plant in Jharkhand and is considering a similar project in Orissa, as well, is planning integrated townships in both the states. Chief Executive Officer Sanak Mishra said, "We know the social requirements and will do it."

While the company would build the townships, the facilities could also be outsourced, Mishra said, adding "that's the modern model".

Posco India, the other mega steel project in Orissa, will soon start a socio-economic survey for a township for the displaced people "� in addition to the township for its employees.

Deputy Managing Director Tae-Hyun Jeong said, "We don't yet know how many people have been displaced. Once we do the socio-economic survey, we will have an idea."

The South Korean steel major has already made a beginning with its CSR (corporate social responsibility) initiative, which entails health camps and education.

But, it is not just the foreign companies that are investing in developing social infrastructure in the country.

Home-grown entities like the Tata, the Aditya Birla, the Essar and the Jindal groups have also initiated the first domestic public-private partnership, by forming Sarva Swasthya Mission Trust, to ensure medical treatment for Jharkhand's BPL population.

The Tatas have confirmed a yearly contribution of Rs 25 crore for a period of 30 years to the trust. Of course, the group already has a long association with the Jharkhand government by virtue of its Jamshedpur unit.

Tata Steel has a 5-million tonne plant in Jamshedpur, and it expects to double the unit's capacity to 10 million tonne a year. Moreover, the company manages the city of Jamshedpur.

A company spokesman said Tata Steel, on an average, spends around Rs 100 crore a year in Jamshedpur infrastructure, including hospitals.

Besides, the company has an MoU with the Jharkhand government for a 12-million tonne greenfield project in Seraikela-Kharshawan district.