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Rediff.com  » Business » Lukewarm response to Posco compensation

Lukewarm response to Posco compensation

By BS Reporter
February 15, 2010 12:20 IST
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PoscoThe Orissa government and Posco India's effort to expedite land acquisition for the latter's Rs 54,000-crore (Rs 540-billion) steel project near Paradeep in Jagatsinghpur district has turned out to be a dampener.

Only 21 out of the 2,200 odd families, engaged in betel vines cultivation there, have applied for compensation by February 10, the deadline set by the district administration of Jagatsinghpur.

"Out of 2,200 families, only 21 families have applied for compensation, and steps are being taken to convince the remaining families to apply for the compensation," said Nrusingh Swain, special land acquisition officer, Paradeep.

Lack of co-ordination among the district administration, Posco officials and the land losers, announcement of lesser compensation compared to 2007 and finalisation of the compensation package for the betel vine farmers without consulting pro-Posco outfit United Action Committee are cited as the reasons for the lackluster response.

UAC members said the rising demand for betel leaves and the non-fulfilment of their demands have led to the poor response.

"We have been raising cash crops like betel vines and cashew for so many years. There is no point in applying for the compensation that has been fixed at Rs 7,000 per decimal of land, less than the compensation of Rs 10000 per decimal paid by the company in 2007," said Arjun Swain, a betel vine farmer from Nuagaon.

In 2007, the company paid a compensation of Rs 10,000 per decimal of land, but was stopped in the middle as it was paying more than the amount stated in the Rehabilitation and Resettlement Policy of the Orissa government.

The other betel vine farmers, who are earning Rs 30,000-40,000 per month,  are not willing to give their land at throwaway prices. The overall business of the betel leaves in this region is close to Rs 10 crore (Rs 100 million) per annum.

Posco India is offering a compensation of Rs 7,000 per decimal of land for loss of betel vines, Rs one lakh per acre of prawn gheries and Rs 75,000 per acre of cultivable land.

The UAC members had demanded a compensation of Rs 15,000 per decimal of land for betel vines and Rs five lakh per acre of prawn gheries.

PPL to pay Rs 10 crore

In another significant development, Paradeep Phosphates Ltd, with the help of district administration, has resolved the 28-year long land compensation row.

The locals, who had ceded 1,532 acres of land for the PPL project at Paradeep in 1982, would get a compensation of Rs 21,000 per acre of land.

The move would benefit 1,500 families, and PPL would pay a compensation of Rs 10 crore (Rs 100 million). This decision was taken at a tripartite meeting, involving the district administration, PPL management and the farmers' organisations, held at Paradeep on Thursday.

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BS Reporter in Bhubaneswar
Source: source
 

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