Vedanta on Volcanoes
11 Aug, 2008 · 2648
Ranjan K Panda argues that mining projects in Orissa offer little benefit either to its people or the state
Vedanta Resources, the London-based mining and aluminum major has almost become synonymous with controversies in India. Even though the Supreme Court on 8 August gave its branch, Vedanta Alumina Ltd., the final go-ahead to mine bauxite in the Niyamgiri hills of Orissa, the protests have not abated, erupting instead in unique ways more recently. The Niyamgiri hills are sacred to the Kondh, a primitive tribe native to the region and an international aid agency, Action Aid, therefore, submitted an application to the City of London requesting demolition of the St Paul's Cathedral - a historical and religious landmark in London. The Cathedral is a sacred monument for the Londoners and Christians who the agency argued would certainly not demolish it to make profit, thus drawing parallels with Niyamgiri.
Vedanta's repeated arguments that it would put one of the best environmental standards may have convinced government officials in India, but the Kondhs are worried about the depletion of resources itself. In addition to being supremely holy to the Kondh, the mountain is also important because it hosts one of the richest bio-reserves of the country on which many tribals and other rural people depend, and which, with its 27 perennial streams, is the source of two very important rivers in the south Orissa and the northeast Andhra Pradesh.
A unique feature of the protest campaign has been its new strategy of establishing direct contact with the board members and shareholders of the company. The protests were deliberately held during the Annual General Meeting (AGM) of the company held in London. The campaign sought to educate Vedanta's shareholders and investors and influence them to refrain from supporting this eco-cultural crime being committed by Vedanta. Its efforts have definitely met with initial success. Apart from the tribals who flew to London from far off Kalahandi in Orissa, some of its shareholders too joined the bandwagon in demanding the stalling of the project owing to the tremendous environmental costs and religious issues involved.
Orissa holds a key position as a mineral producer in the country. In 2004-2005, besides being the lead iron ore producer, it accounted for 41 per cent of India's total production of bauxite. It is therefore attracting a number of mining companies including Vedanta. However, the latter's operations have always faced stiff opposition because it is regarded as a villain of the local environment and people including the indigenous communities. The operations of Sterlite Industries (India) Limited, a subsidiary of Vedanta Resources, in Lanjigarh in the Kalahandi district ousted 103 households form their land and homestead. The company says 67 people from the 103 displaced families have sought jobs in the company and that it would enable them to get employment. However, the Lanjigarh households had clear title over their land, but the tribal people in Niyamgiri do not have clear title deeds despite their occupation of the land for decades and their plight can well be imagined.
Opposition to Vedanta is not confined to Niyamgiri alone. The company's lease application to mine bauxite from another eco-shrine, the Gandhamardan hills, has also caused people to protest. Gandhamardan, it must be recalled witnessed Orissa's first ever successful people's struggle against the state-owned mining giant, BALCO two decades ago. It forced the company to wind up despite having spent crores of rupees in trial mining and infrastructure building. The people of Gandhamardan region recollect how BALCO had lured them with promises of employment but then soon realized that the employment was not to last for long and that the environment that sustained them would be lost forever. That realization was the essence of what was probably one of the most successful environment and livelihood-saving campaign carried out by local people in the country.
Mining-induced deprivation is a major cause of growth of the Naxal movement in the state and this has been reestablished in a recent Task Force report of the Planning Commission. Areas like Gandhamardan and the Niyamgiri, which are being eyed by big companies like Vedanta, are not far off from the epicenter of the Naxal movement. In fact, this has already been indicated by government intelligence sources. In essence, the Vedanta kind of development model which erodes local natural resources neither benefit neither the state nor its people. Even though the state's mineral industry has registered a jump of almost three times from 1997-98, with a growth of 27 per cent per year since 2002-03, the contribution of mining to the GDP has been insignificant. It stood at only 6.6 per cent in 2003-04, much lower than 33 per cent contributed by agricultural and allied activities. Meanwhile, Vedanta is virtually sitting on volcanoes in Orissa - opposition to such projects is here to stay.