Oustees to get jobs before Jindal plant goes onstream

While the West Bengal's rehabilitation package for those who lost land to the Tata Motors' project in Singur has failed to end the opposition to the project, Andhra Pradesh has gone a step ahead.

The state government has announced a job for each of the 600 families who will lose land to the Jindal group's aluminium project, with a monthly salary of Rs 3,000 till the project is commissioned.

This is in addition to the Rs 2.05 lakh per acre compensation and Rs 1.75 lakh worth of shares to each family. Also, a one-time grant of Rs 3 lakh is being offered to families who do not want jobs. The company will also build houses for the displaced families.

The most controversial of all the recent projects, the state government had engaged the Andhra Pradesh Mining Development Corporation (APMDC) to mine bauxite in the reserve forest areas of the Visakha agency while entering into MoUs with the Jindal group a couple of years ago and Ras Al Khaimah recently.

The Jindals and the UAE firm have proposed to set up alumina and smelter projects with an investment of over Rs 9,000 crore and Rs 8,000 crore, respectively. The corporation will supply bauxite ore.

The state Cabinet, which met on Wednesday, cleared the allotment of 1,048 acres to Jindal South West Aluminium Company Limited in the S Kota area in Vizianagaram district along with the rehabilitation package.

Of this, 866.67 acres is assigned land, that is, given by the government to landless scheduled caste and scheduled tribe families. The company proposes to build the phase one of the project within one year from the date it gets the land.

The state government has gone ahead with the MoUs and allotment of bauxite reserves and land, even though the Centre is yet to allot mining licences to the APMDC.

"We expect mining licences soon since the state government has made all the arrangements, including provision of alternative land for afforestation," K Prabhakar Reddy, additional secretary to the chief minister told Business Standard.

The Opposition parties are opposing bauxite mining saying it will displace the tribals in forest areas. According to the Geological Survey of India, about 1,000 million tonnes of bauxite reserves are available in the Visakha agency.

Public sector National Aluminium Corporation Limited (Nalco) is also keen to set up an aluminium smelter plant in Visakhaptnam, according to officials. Earlier, the state government had refused to give mining areas to Nalco.

"The government will now supply bauxite ore through the APMDC to all those who come forward to set up their projects here, including Nalco," said Prabhakar Reddy, who deals with mining in the chief minister's office.

The state Cabinet also cleared the proposal to allot over 1,000 acres to Uranium Corporation of India Limited for mining in Kadapa district. The company is expected to produce 411 tonnes of uranium per year.