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Indians divided over S Korean plans for steel plant

Monday, 24 September 2007


JAGATSINGHPUR, India, Sept 23 (AFP): Indian farmer Ranjan Mohanty is one of the few people in his poor village who backs South Korean steel giant POSCO's plans to build a mega- plant here, but that support has cost him dearly.
Mohanty, his wife and three children have been living for three months in dingy state housing, after opponents of POSCO's 12-billion-dollar project in eastern Orissa state chased him off his land.
"I'd rather commit suicide than go back to our home now. We've paid a heavy price for supporting POSCO," he says in an interview at his new home, which he shares with 200 other people, crammed into tiny rooms and corridors.
POSCO, the world's fourth largest steelmaker, says it is confident that construction will begin next month, but some villagers say they will fight for their land to the end.
"People will resist this plant at the cost of their lives," says leftist politician Abhay Sahu, who heads the anti-POSCO movement.
"It's a fight for our motherland," he adds, flanked by a dozen men in the village of Dhinkia, the nerve centre of resistance to the POSCO project.
The confict among villagers facing eviction here is part of a growing and often violent discontent in India over land acquisition as the government in New Delhi pushes for industrial development.
The POSCO project represents India's largest foreign direct investment, dwarfing the 2.9-billion-dollar Enron power plant in Maharashtra state. It says the plant will create 18,000 jobs over the next 10 years.
But the South Korean firm has struggled to acquire the land it needs amid the continuing protests by villagers in Jagatsinghpur district.
It so far has just 193 of the 4,004 acres (1,600 hectares) it needs. POSCO says it hopes to buy another 300 acres soon, and has been promised 1,135 acres by the government.
But Sahu says most of the 4,000 families who face displacement in this coastal district remain opposed to the project.
POSCO has tried to sweeten the deal, insisting that displaced families will get "preference" for employment and other forms of compensation in exchange for their land.
"We will offer one job per each displaced family and infrastructure to continue cultivation at another place," said POSCO spokesman Shashanka Pattnaik.
Mohanty says he will start a grocery shop with the one million rupees (25,000 dollars) he gets for his land.
Bishwanath Nayak, who also lives at the shelter, is optimistic about the future, saying: "Industrialisation will bring more schools, colleges, and opportunities for our children."
But opponents say plants should not be set up on fertile land.
"We worship this soil. I will give up my life, but I will not give up this land," says Bansidhar Sutar, 32, taking off his shoes in reverence before stepping on his farmland.
Sutar says he makes about 5,000 rupees (125 dollars) a month by selling betel leaves. Farmers in the district say the rich soil is ideal for betel vine cultivation.
Residents of Dhinkia armed with bamboo sticks guard the entrance to the village, to keep out what they call the three Ps -- police, POSCO and prashasan, the Hindi word for administration.