Orissa newsFive years ago, South Korea's Posco proposed to build a 12 million tonne steel project in Paradip, Orissa. Apart from the mandatory government approvals, it had also reached an agreement with some farmers in Erasama block, close to the coastal town, the location for the steel plant, who had agreed to sell their land. This, despite strong opposition from other farmers who were unwilling to part with the land.
But by June 2011, even those farmers who had agreed for a settlement, turned hostile and demanded a review of the earlier compensation. They also joined those opposed to the project and barricaded the entrance to the project site, quelling efforts by the government to revive the land acquisition exercise. The delay has now prompted Posco to consider an alternate site in Karnataka.
The Posco case is not the only example where farmers are reluctant to part with land. Similar sentiments were seen in West Bengal where Bharat Forge decided to shift its power equipment project to Gujarat, due to hurdles in land acquisition. Again in West Bengal, the Bharti Shipyard-Apeejay Group joint venture for a Rs 2,000-crore shipbuilding project, has said it is exploring options to relocate to Gujarat after waiting for two years to buy land for the project.
These two developments come two years after Tata Motors was forced to abandon its project in fertile Singur, and go to Gujarat. The delay in land acquisition has been due to reluctance of farmers to sell fertile landholdings for compensation equal to only two to three years of earning. The Paradip region in Orissa is a fertile land that grows not only rice and pulses, but is also home to a wide varieties of betel leaf plantations, a cash crop.
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