Friday, November 28, 2008
Thursday, October 30, 2008
Involving Civil Society in CSR: Vedanta shows the way
Corporate Social Responsibility (CSR) has become a fashionable term in Orissa, in recent years. A number of hoarding spread across the cities and advertisements are made in newspapers regarding the company’s claim that they addressing important development needs of the community. However, participation by independent Civil Society member is lacking in most case.
The recent move by Vedanta Aluminium to involve some of the noted Civil Society members – like Bureaucrats, Writers, Women Activist, Academicians and Cine Artists – is a welcome step. It will give a new dimension to the CSR practice in the state. As per the newspaper sources, the company has formed a Corporate Social Responsibility (CSR) advisory board, meant to act as a bridge between the company and the people of Orissa. The board is expected to monitor the CSR initiatives of the company and to ensure that the benefits of CSR efforts reach out to the society at large. Involving the Civil Society in its CSR program, Vedanta has led the way.
Another important aspect is that all the members in the board are Odiya people. The present members are Mr PK Jena Chairman of Institute of Advance Technology & Environmental Studies, Mr SB Mishra and Sahadev Sahoo both former chief secretaries of Government of Orissa, Mr ON Mohanty vice chancellor of Biju Patnaik University of Technology, Mr AB Tripathy retired director general of Police, Mr AB Ota director SC &ST Research and Development Centre, Government of Orissa, actor Mr Bijay Mohanty, besides three women of repute Ms Rita Ray professor, Department of Sociology of Utkal University, Ms Namita Panda chairperson State Women Commission and eminient writer Ms Pratibha Ray. All these people are achievers in their own level and their contribution to Orissa is undebatable.
These people will show the right directions to the Company for their CSR investment for reaching to the people of Orissa in a better way.
Other Companies should also take cue from Vedanta. Such kind of initiatives not only gives a kind of authenticity to the CSR work, but also helps the company in planning and executing the required CSR activities to address the human, social and environmental issues.
The recent move by Vedanta Aluminium to involve some of the noted Civil Society members – like Bureaucrats, Writers, Women Activist, Academicians and Cine Artists – is a welcome step. It will give a new dimension to the CSR practice in the state. As per the newspaper sources, the company has formed a Corporate Social Responsibility (CSR) advisory board, meant to act as a bridge between the company and the people of Orissa. The board is expected to monitor the CSR initiatives of the company and to ensure that the benefits of CSR efforts reach out to the society at large. Involving the Civil Society in its CSR program, Vedanta has led the way.
Another important aspect is that all the members in the board are Odiya people. The present members are Mr PK Jena Chairman of Institute of Advance Technology & Environmental Studies, Mr SB Mishra and Sahadev Sahoo both former chief secretaries of Government of Orissa, Mr ON Mohanty vice chancellor of Biju Patnaik University of Technology, Mr AB Tripathy retired director general of Police, Mr AB Ota director SC &ST Research and Development Centre, Government of Orissa, actor Mr Bijay Mohanty, besides three women of repute Ms Rita Ray professor, Department of Sociology of Utkal University, Ms Namita Panda chairperson State Women Commission and eminient writer Ms Pratibha Ray. All these people are achievers in their own level and their contribution to Orissa is undebatable.
These people will show the right directions to the Company for their CSR investment for reaching to the people of Orissa in a better way.
Other Companies should also take cue from Vedanta. Such kind of initiatives not only gives a kind of authenticity to the CSR work, but also helps the company in planning and executing the required CSR activities to address the human, social and environmental issues.
Tuesday, October 21, 2008
Only Inviting Industry is not Enough
Orissa government boasts to be successful in attracting the highest investment in Eastern India. Offering its huge natural resources, it has been successful in getting investment commitment from some of the big names like Tata, POSCO, Arcelor Mittal, Vedanta etc. No doubt this industrial surge will boost Orissa’s socio-economic development. However, to turn these commitments into reality Orissa government should show genuine interest. It should provide a conducive environment for these Industries to start and operate. Otherwise the situation like Singur may arise.
In a recent decision, the District Collector banned the plying of multi-axled vehicles on NH 201 from Bhawanipatna to Belgaon, citing the poor condition of the road. As per the news report the road is unsafe for traffic movement.
This decision will affect the industry in Kalahandi and Jharsuguda, severely. This is the main route through the industrial houses in Jharsuguda such as Jindal and Vedanta carry their material and machinery from Vizag port. After this ban their business shall be seriously affected.
Now the question comes, what made the collector to take up such decision. If vehicles are the main reason for poor road condition, where was the district authority before this worse condition? These industries must be paying the taxes for their heavy vehicle movement. Where this money is utilized? Why did not the government take necessary measures to stop this ban?
It is the responsibility of the Government to provide adequate infrastructure support to the industries. If the movement of their material and machinery will be stopped, how can other industry body be encouraged?
In a recent decision, the District Collector banned the plying of multi-axled vehicles on NH 201 from Bhawanipatna to Belgaon, citing the poor condition of the road. As per the news report the road is unsafe for traffic movement.
This decision will affect the industry in Kalahandi and Jharsuguda, severely. This is the main route through the industrial houses in Jharsuguda such as Jindal and Vedanta carry their material and machinery from Vizag port. After this ban their business shall be seriously affected.
Now the question comes, what made the collector to take up such decision. If vehicles are the main reason for poor road condition, where was the district authority before this worse condition? These industries must be paying the taxes for their heavy vehicle movement. Where this money is utilized? Why did not the government take necessary measures to stop this ban?
It is the responsibility of the Government to provide adequate infrastructure support to the industries. If the movement of their material and machinery will be stopped, how can other industry body be encouraged?
Wednesday, October 15, 2008
Do not halt Kalahandi’s development
Kalahandi, one of the KBK districts in Orissa has always been in news due to poverty, hunger, starvation deaths and sale of children. Picture of the hungry people of the district sells well before the international community for mobilization of funding by NGOs. These NGOs and so-called Development Agencies make money and enjoy their life with the money donated for development of tribal people of the district. There has not been any visible change in poverty and development scenario of the state, in spite of huge fund inflow.
In contradiction, Kalahandi district is endowed with huge natural resources. Historically the region was known as Karunda Mandala, due to availability of precisou stones. The district also has huge reserves of bauxite, primary raw material for aluminium. Yet more than 60% of the population lives below the poverty line, as per 1997 Census.
Off late Companies have expressed their interest to utilize the mineral resources and set up aluminium industry. Vedanta Aluminium is the first company to set up the first mega industry in the district. Another company – joint venture of Dubal and L&T – is going to start mining activities in the district, while their refinery and smelter will be located in other districts.
These industries will no doubt influence the socio-economic scenario of Kalahandi district, which is often characterized by unemployment and non-industrialization. The most significant contribution by the industrial activities is employment generation. This is quite evident from Vedanta’s Aluminum Refinery at Lanjigarh. A lot of employment opportunity is available in the locality. The project has provided gainful employment to about 2,500 local people. While about 2,000 people had got direct employment in the refinery, over 2,000 others get indirect income generating opportunities. Local youths are trained on various employability skills and are being engaged in the company or in the contracting company. The number will certainly increase, when ancillary industries will come up. More economic activities will boost local business and more and more people will get business opportunities.
Earlier the tribal people here were getting Rs. 20~30 per day for labour work, now their wage has increased upto Rs. 100. They no more need to migrate to other places, in search of work. Rather people from other areas are coming to this small village for job. This will certainly enhance the socio-economic profile of the area.
However, more initiatives from Government as well as the Company are needed to make people employable in these industries. Only creation of job is not enough. The second step is to train the local people and make them job-ready. Otherwise, Kalahandi people will miss the opportunity. Vedanta has taken up several steps to train people and employ them in the company, directly or indirectly.
Understanding the agrarian mindset and interest of local people the company has initiated a program called Shashya Shilpa Abhiyan, an initiative on vegetable cultivation to give a boost to agriculture in the area. As per the company sources, Nearly 550 farmers from 45 villages are partnered this project. The company bears the expenses for irrigation and diesel pump sets are provided to the farmers. These farmers are growing cauliflower, brinjal, ladyfinger, cabbage, tomato and radish etc. Monthly income of partner farmers has grown up to Rs. 4500/- per month from Rs. 1500/-, on average. Besides, the Company is also providing capacity building and technical support for pisciculture, goatery as well as horticulture. This is really a welcome step. Industrialization has not only created more job opportunities, it is also strengthening local agriculture.
However, more initiatives are desired. People from the entire district should get the training cum capacity building support. The company should set up a permanent training facilities and Skill up-gradation centers. This training center should impart technical training in different areas.
There are some NGOs and the so-called activists, who project themselves as saviors of tribal community and the environment are deliberately inciting people against industrialization. Whatever their intention may be, the ultimate looser shall be the tribal people. If they are really serious about development of local tribal, where were they five years before? If the industrial activity is stopped, can they provide the improved employment opportunities? No, they will go back, leaving the tribal to the fortune of hunger and migration.
In contradiction, Kalahandi district is endowed with huge natural resources. Historically the region was known as Karunda Mandala, due to availability of precisou stones. The district also has huge reserves of bauxite, primary raw material for aluminium. Yet more than 60% of the population lives below the poverty line, as per 1997 Census.
Off late Companies have expressed their interest to utilize the mineral resources and set up aluminium industry. Vedanta Aluminium is the first company to set up the first mega industry in the district. Another company – joint venture of Dubal and L&T – is going to start mining activities in the district, while their refinery and smelter will be located in other districts.
These industries will no doubt influence the socio-economic scenario of Kalahandi district, which is often characterized by unemployment and non-industrialization. The most significant contribution by the industrial activities is employment generation. This is quite evident from Vedanta’s Aluminum Refinery at Lanjigarh. A lot of employment opportunity is available in the locality. The project has provided gainful employment to about 2,500 local people. While about 2,000 people had got direct employment in the refinery, over 2,000 others get indirect income generating opportunities. Local youths are trained on various employability skills and are being engaged in the company or in the contracting company. The number will certainly increase, when ancillary industries will come up. More economic activities will boost local business and more and more people will get business opportunities.
Earlier the tribal people here were getting Rs. 20~30 per day for labour work, now their wage has increased upto Rs. 100. They no more need to migrate to other places, in search of work. Rather people from other areas are coming to this small village for job. This will certainly enhance the socio-economic profile of the area.
However, more initiatives from Government as well as the Company are needed to make people employable in these industries. Only creation of job is not enough. The second step is to train the local people and make them job-ready. Otherwise, Kalahandi people will miss the opportunity. Vedanta has taken up several steps to train people and employ them in the company, directly or indirectly.
Understanding the agrarian mindset and interest of local people the company has initiated a program called Shashya Shilpa Abhiyan, an initiative on vegetable cultivation to give a boost to agriculture in the area. As per the company sources, Nearly 550 farmers from 45 villages are partnered this project. The company bears the expenses for irrigation and diesel pump sets are provided to the farmers. These farmers are growing cauliflower, brinjal, ladyfinger, cabbage, tomato and radish etc. Monthly income of partner farmers has grown up to Rs. 4500/- per month from Rs. 1500/-, on average. Besides, the Company is also providing capacity building and technical support for pisciculture, goatery as well as horticulture. This is really a welcome step. Industrialization has not only created more job opportunities, it is also strengthening local agriculture.
However, more initiatives are desired. People from the entire district should get the training cum capacity building support. The company should set up a permanent training facilities and Skill up-gradation centers. This training center should impart technical training in different areas.
There are some NGOs and the so-called activists, who project themselves as saviors of tribal community and the environment are deliberately inciting people against industrialization. Whatever their intention may be, the ultimate looser shall be the tribal people. If they are really serious about development of local tribal, where were they five years before? If the industrial activity is stopped, can they provide the improved employment opportunities? No, they will go back, leaving the tribal to the fortune of hunger and migration.
Tuesday, October 14, 2008
Fortune come once: Dongria Kondhs
After several years of poverty and deprivation, an opportune moment has come for tribal people in Lanjigarh to change their socio-economic status. Several tribal people, who were always denied of basic rights such as health and education, welcome the recent judgment by the Supreme Court to allow mining from Niyamgiri Hills.
“The so called NGOs are serving their own interest. Where were they before five years, when there was no road, no medical facility and no education for us”, asks Dhan Majhi. Soon after Vedanta started construction of Alumina refinery, these NGOs came in and are using the names of Dongria Kondhs for their advantage, alleges Baya Majhi.
Earlier, the tribal were being exploited and were given a wage of Rs. 20 per day. People were forced to migrate to different towns in search of employment. There was school but no teacher, hospital but no doctor. However, soon after with Vedanta there is a significant change in their life. Wage rate has gone more than Rs 70 a day for unskilled jobs. No longer they need to migrate to other towns, as they can get engagement in their own village. Rather, people from other areas are migrating to work here, says Ghasi Majhi. Roads and communication facilities have improved. They can get basic health services at their doorstep. Schools and Anganwari Centres are running regularly. “We expect more such measures, once Vedanta starts mining” according to Dhan Majhi.
This educated tribal explains how the mining activities will not affect the environment. The mining activities shall be limited to the surface 10-15 metres down in selected areas in the hills. So the forest in down area will not be affected, he assures. Experts say that there wont be any significant environmental impact due to the bauxite mining. Referring to the example of mining activities in Panchpat Mali hills by NALCO, they say that No river or stream has dried up there.
“Our principles are to protect the environment, ensure safety, ensure development of the local area and ensure participation of the community”, assures Dr. Mukesh Kumar, Chief Operating Officer. As per the order of the Supreme Court 5% of the profit or 10 crore, whichever is higher shall be spent for local area development. For the purpose a Special Purpose Vehicle (SPV) for Scheduled Area development of Lanjigarh shall be formed with the State Government, Orissa Mining Corporation and Sterlite Industries as Stakeholders. The amount shall be deposited with the SPV and the accounts shall be prepared by the OMC. The Auditor General of Orissa will audit the accounts. “Just imagine what kind of development will happen in the area with this much amount”, asks Mr. Prasanna Kumar Panda, Vice President (Mining).
Intellectuals in Kalahandi welcome the Supreme Court judgment and Vedanta’s socio-economic development initiatives. Though there exists abundant mineral resources in and around Kalahandi, the district had no big industry till date. Opposition by the activists has always foiled the attempts to establish aluminum industry, even during the pre-independence times. Vedanta is the first Company to establish such a mega Alumina Refinery in the district, which is known for its poverty and underdevelopment. Success of Vedanta can motivate other companies to set up their operation in the district and in the state.
The organizations that are crying for the Dongria kondhs wont be there, once the company goes back. However, these people will remain in the same socio-economic deprivation. These NGOs should leave us alone, says Dhan Majhi.
“The so called NGOs are serving their own interest. Where were they before five years, when there was no road, no medical facility and no education for us”, asks Dhan Majhi. Soon after Vedanta started construction of Alumina refinery, these NGOs came in and are using the names of Dongria Kondhs for their advantage, alleges Baya Majhi.
Earlier, the tribal were being exploited and were given a wage of Rs. 20 per day. People were forced to migrate to different towns in search of employment. There was school but no teacher, hospital but no doctor. However, soon after with Vedanta there is a significant change in their life. Wage rate has gone more than Rs 70 a day for unskilled jobs. No longer they need to migrate to other towns, as they can get engagement in their own village. Rather, people from other areas are migrating to work here, says Ghasi Majhi. Roads and communication facilities have improved. They can get basic health services at their doorstep. Schools and Anganwari Centres are running regularly. “We expect more such measures, once Vedanta starts mining” according to Dhan Majhi.
This educated tribal explains how the mining activities will not affect the environment. The mining activities shall be limited to the surface 10-15 metres down in selected areas in the hills. So the forest in down area will not be affected, he assures. Experts say that there wont be any significant environmental impact due to the bauxite mining. Referring to the example of mining activities in Panchpat Mali hills by NALCO, they say that No river or stream has dried up there.
“Our principles are to protect the environment, ensure safety, ensure development of the local area and ensure participation of the community”, assures Dr. Mukesh Kumar, Chief Operating Officer. As per the order of the Supreme Court 5% of the profit or 10 crore, whichever is higher shall be spent for local area development. For the purpose a Special Purpose Vehicle (SPV) for Scheduled Area development of Lanjigarh shall be formed with the State Government, Orissa Mining Corporation and Sterlite Industries as Stakeholders. The amount shall be deposited with the SPV and the accounts shall be prepared by the OMC. The Auditor General of Orissa will audit the accounts. “Just imagine what kind of development will happen in the area with this much amount”, asks Mr. Prasanna Kumar Panda, Vice President (Mining).
Intellectuals in Kalahandi welcome the Supreme Court judgment and Vedanta’s socio-economic development initiatives. Though there exists abundant mineral resources in and around Kalahandi, the district had no big industry till date. Opposition by the activists has always foiled the attempts to establish aluminum industry, even during the pre-independence times. Vedanta is the first Company to establish such a mega Alumina Refinery in the district, which is known for its poverty and underdevelopment. Success of Vedanta can motivate other companies to set up their operation in the district and in the state.
The organizations that are crying for the Dongria kondhs wont be there, once the company goes back. However, these people will remain in the same socio-economic deprivation. These NGOs should leave us alone, says Dhan Majhi.
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