Response by Mr. Dilu Panda
 

 

Dear Mr Baral,
I am giving the factual corrections to the letter of Mr Chitta Baral. Some of the
corrcetions are available in public domain and some are common sense.MY REPLIES ARE IN
CAPITAL LETTERS

 
 
Dear Mr. Ratan Tata and Mr. B. Muthuraman:
Tata steel (TISCO) has been one of the major lease holders of mines in Orissa. As you know, mineral resources, once used are gone for ever. With that in mind, we in Orissa are now very
much concerned, and we want to make sure that our precious and non-renewable mineral resources are converted to human resources. We believe that Tata Steel has mostly tried to
look at Orissa as only a resource for raw materials for use in its other locations. Sure, you have taken actions, at times near lease renewal time, to give Orissa hope of other kind of investments, but then after the lease renewals, your actions have been otherwise. A good example of this is the Gopalpur steel plant. Mr. Muthuraman was given charge of planning for a mega steel plant there in 1995 [1], but after three leases were granted in 1997 and 1998
[2] the Gopalpur steel plant is no longer in cards.

MINERALS ARE A NATIONAL PROPERTY AND NOT A STATE'S PROPERTY.  WHEN TATA STEEL PLANT CAME UP IN JAMSHEDPUR WAY BACK IN 1905, IT WAS IN UNDIVIDED ORISSA AND BIHAR. I HOPE EVERYONE IS AWARE THAT TODAY JAMSHEDPUR IS IN BIHAR / JHARKHAND DUE TO OUR THE THEN POLITICAL LEADERS -
DO WE NEED TO NAME THEM ? SIMILARLIY MINES WERE ALLOTED TO TATA STEEL WHEN IT WAS UNDIVIDED ORISSA AND BIHAR. THE DIVISION OF STATES POLITICALLY DUE TO OUR POLITICIANS AHVE CREATED PROBLEMS. IF WE SAY THAT MINERALS IN ORISSA CAN ONLY BE USED BY US, THEN OUR WATER IN MAHANADI WILL DRY UP ( mp WILL NOT ALLOW WATER), OUR PEOPLE WILL NOT GET FISH TO EAT (ANDHRA WILL NOT SEND ANY FISH), WE WILL NOT GET ANY PETROL ( BECAUSE WE DO NOT PETROL RESERVES). THEIR HAS TO NATIONAL PROSPECTIVE TO ALL NATURAL RESOURCES IN THE COUNTRY.  YOU MAY CHECK UP FACTS WITH  WITH THE MINING AUTHORITIES IN ORISSA, TATA STEEL HAS NOT BEEN ALLOTED A SINGLE MINING LEASE AFTER THE 1970S IN THE STATE OF ORISSA.
 
Recently, Tatas are involved in several other ventures in Orissa, some in line with our "human resource developement goal." These include Tata's involvement in Dhamara port and railway line to it[3], establishment of J N Tata educational center in Gopalpur [4],
upcoming TCS campus for 1000 professionals [4], and plans for Indione hotels to be built by Tatas [4]; the last two with a combined investment of Rs 100 crores [4]. Although, these are
good steps, based on your contributions to other locations (for example, to Mumbai, Jamshedpur and Kolkata), your long history and dependence of mining leases in Orissa, the unbelievably low and slow-changing rates of the leases, and the recent promises by other mine based industry investors in Orissa, your contribution to Orissa has been an insult to Orissa.Perhaps sensing that the Tata Steel web pages have a special section on "Orissa and Tata
Steel" [5] where you try to convince that how Tata Steel does not "look upon Orissa only as a source of raw materials but has woven itself into the fabric of Orissa." We feel that its exactly the opposite. The fact that you do not have such a section with respect to the other states means that it is obvious to people in other states the benefit they derive from having Tatas, while in case of Orissa many people feel exactly the opposite. Hence, you have had to go out of your way to create a page to convince Orissans. But comparative data say otherwise.
In Mumbai, you have established the Tata Institute of Fundamental Research (TIFR), Tata institute of Social Sciences (TISS), and Tata memorial cancer hospital. [6]In Kolkata you are investing 92 crores on a cancer hospital similar to the Mumbai. [7] In Jamshedpur, you have a 740 bed Tata main hospital with annual expenditure of more than 25 crores [8] and in 2000-2001 you spent 120 crores on its civic amenities (out of which 45 crore was offset through revenue collection) [8]. In August 2005 you agreed to fund 50% of a
120 crore scheme of the Jharkhand government which will enable every member of the BPL family to avail of medical care. You promised the annually contribute Rs 25 crore for the next 30 years. You also agreed to contribute 150 crores to set up a modern sports
infrastructure in Ranchi. [9]In comparison, with respect to Orissa, based on the Tata steel web pages, you have medical facilities in Badbil and Joda [10,13], a 30 bed hospital in Sukinda [11] and a 25 bed hospital at Belpahar [12]. The big projects (beyond 1 crore) of your Tata Relief council [14] are Rs 5 crore in 2000 for house construction, Rs 1.6 crore in emergency relief in 1999, Rs 1.15 crore for blankets in 1999, Rs 1 crore for houses in 1996 and also in 1991. Besides that you have given 5 crores towards the Institute of Mathematics and Applications [15]. I hope I am not missing some things, but this is all I could find in your Tata Steel and Orissa pages.
THE FOLLOWING ARE THE FACTS TO THE ABOVE THREE TO FOUR PARAGRAPHTATA STEEL HAS PLAYED A PIONEERING ROLE IN DISCOVERING IRON ORE, MANGANAESE ORE AND CHROME ORE IN THE STATE OF ORISSA. EVEN THE DEPARTMENT OF GEOLOGY OF GOVT OF ORISSA DEPENDED ON THE  DATA OF TATA'S GEOLOGICAL DEPARTMENT TILL 1960 - IS THIS NOT A CONTRUBUTION ?TATA STEEL ALONG WITH THEIR MINING AND INDUSTRIAL OPERATIONS  IN ORISSA, BUILT UP FOUR MODERN TOWNSHIPS NAMELY JODA, SUKINDA, BELPAHAR AND GOMARDIH IN THE STATE, WHICH IS IN
ABSOLUTE INTERIORS OF ORISSA. THESE TOWNSHIPS HAVE ELECTRICITY, WATER, EDUCATION, HOSPITALS AND ALL OTHER CIVIC AMENITIES, WHICH IS ALSO USED BY GENERAL SURROUNDING POPULACE NOT CONNECTED WITH TATA STEEL. IN JODA, WHICH HOSPITAL WILL A POOR PERSON GO - IT IS ONLY TO THE TATA STEEL HOSPITAL , SAME IN SUKINDA AND BELPAHAR - IS THIS NOT A SUBSTATNTIAL CONTRIBUTION
? EVEN OUR PSU IN THE SAME AREA LIKE SAIL, OMC HAVE NOT DOEN ANYTHING.TATA STEEL IN INTIRIORS OF ORISSA HAVE FOUR HOSPITAL WITH 200 BEDS AND MORE THAN 100 DOCTORS AND PARAMEDICS. ONE HAS TO GET ACCESS TO NEW DATA TO KNOW THE ACTUALS AND NOT ONLY DEPEND ON
WEBSITES. IN LAST YEAR MORE THAN 3 LAKHS GENERAL PUBLIC HAVE BENEFITTED OUT OF TATA'S HEAlTH SERVICES IN ORISSA - BUT OFF COURSE RICH PERSONS WERE NOT BENEFITTED ! I HOPE YOU ARE AWARE THAT TATA HAVE SPONSORED FOUR LIFE LINES EXPRESS IN THE INTERIORS OF ORISSA, WHICH HAVE BENFITTED FOR THAN 2 LAKH POOR PEOPLE IN LAST SIX TO SEVEN YEARS. THEY HAVE BULIT A ICU IN BOLANGIR AND CONTRIBUTED HEAVILY TO BARIPADA HOSPITAL ABOUT 10 YEARS BACK TO THE FIRE AFFECTED VICTIMS.I AM GIVING SOME OF THEIR BIG SOCIETAL CONTRIBUTIONS IN ORISSA
 
1) XIMB ( 50% COST)
2) PATHANI SAMANTA PLANETORIUM ( 80% COST)
3) CONSTRUCTION / FACILITATION OF INFRASTRUCTURE OF MORE THAN 180 SCHOOLS IN LAST 15 YEARS
4) INSTITUTE OF MATHEMATICS
5) JRD TATA TECHNICAL EDUCATION CENTER
6) UPCOMING STADIUM AT KEONJHAR
7) STADIUM AT PATNAGARH
8) 7 CRORES FOR RELIEF AND REHABILITATION DURING SUPERCYCLONE
9) 3 CRORES FOR FLOOD RELIEF IN THE YEARS OF 2001, 2003 AND 2005 TO MORE THAN 10,000 FAMILIES
10) IT SERVES IN 500 VILLAGERS AND BENEFITS 20,000 FAMILIES ANUALLY THROUGH ITS SOCIETAL INTITIAVES
AND THERE ARE MANY MORE TO LIST -  THERE IS A INVESTMENT BY TATA IN ORISSA OF rS 35,000 CR STARTING FROM STEEL, TO POWER, TO PORT, TO SEZ, SOFTWARE AND HOTELS - ALL ARE COMING UP WELL
 
 
From the above one can compare how you have treated Orissa vis-à-vis other states. Where is the Orissa equivalent of a TIFR or TISS? THIS IS A CONTRIBUTION TO THE NATION AND
NOT FOR ANY NARROW REGIONAL ASPIRATIONS. INSTITUTE OF MATHEMATICS WILL DEFINITELY BECOME
LIKE THIS
Where is the Orissa equivalent of a cancer center that you have in Mumbai and are building in Kolkata? I AGREE WITH THIS
Where is the Orissa equivalent of a Rs 25 crore/year towards health of BPL that you agreed for Jharkhand?  NO IDEA
Where is the Orissa equivalent of the Rs 150 crore for sports facilities in Ranchi? IT IS COMING UP IN KEONJHAR
Where is the Orissa equivalent of manufacturing industry like the 1 lakh car plan that you are setting up in West Bengal? THERE IS A INVESTMENT OF rS 35,000 CR STARTING FROM STEEL, TO
POWER, TO PORT, TO SEZ, SOFTWARE AND HOTELS - ALL ARE COMING UP WELL
This is more frustrating because Tata steel has been mining in Orissa since around 1911.
Your website says [16] that prior to 1911 the ruler of Mayurbhanj, Ramchandra Bhanj Deo,
"granted the mining lease at very liberal terms." Since then some of the recent leases that
Tata Steel has been granted are [2]:
13.8.70 (Keonjhar, 822 hectares, Iron and Manganeese, 20yrs),
27.1.84 (Keonjhar, 2819 hectares, Iron and Manganeese, 20 yrs),
15.5.85 (Keonjhar, 464 hectares, Iron and Manganeese, 20 yrs),
16.3.85 (Keonjhar, 169 hectares, manganeese, 20yrs),
6.3.93 (Sundargarh, 372 hectares, Dolomite, 20 yrs),
18.12.97 (Keonjhar, 671 hectares, iron, 20 yrs),
18.5.98 (Jajpur, 406 hectares, Chromite, 15 yrs)
7.7.98 (Keonjhar, 16.3 hectares, manganeese, 20 yrs).
APART FROM THE 1970 ONE - THE REST ARE FALSE AND NOT NEW LEASES
The lease rates are often set very low by the Indian government and are not quite at par with the market. For example, recently, the Orissa government stated [17] that during a short period of time when the lease rate went up from Rs 24.5 to Rs 27.5 there was a five fold increase (on an average) in iron ore price.
With respect to the importance of the mines in Orissa to Tata Steel, your website [16] mentions how the initial lease granted by Bhanj Deo met the iron ore requirements of your Jamshedpur works and that the major source of your iron ore at present is located in Joda [18], and that you acquired the lease at Joda in 1925. It also says that your company has had lease for chromite mines in the Sukinda region prior to 1953 [11] and you have a Ferro-alloys plant in Joda since 1958 to supply manganese alloys to Jamshedpur [19].
Being dependent on Orissa so heavily for close to 100 years, having been granted mining lease at liberal and slow-changing terms, when one compares what you have given back to Orissa vis-à-vis Jamshedpur, Mumbai or Kolkata, it is an insult that you say [16] that "the initial romance between Tata Steel and Orissa is now a happy "marriage" solemnised by Tata Steel's continued development of Orissa."Now let us compare what some of the others have brought to Orissa's table recently. Anil Agarwal of Vedanta has promised to establish a Rs. 15000 crore Vedanta University in
Orissa with a personal endowment of $1 billion. [20] I HOPE IT WILL ONLY COME UP ?
Anil Ambani has promised to develop a 12,000 MW thermal power plant in Orissa with an investment of Rs. 50,000 crore and another Rs. 10,000 investment towards transmission and evacuation of power. With that he brought forward ideas of setting up a Health City in Bhubaneswar with an investment of Rs. 500 crore, and an institute of higher learning in information technology (IT) with an investment of Rs. 1000 crores. [21,22]
THIS WAS DONE TO SAVE RELIANCE CONTROL OVER POWER DISTRIBUTION COMPNAIES IN ORISSA AND ON THE DAY IT WAS ANNOUNCED, THE OERC WROTE OFF 1000 CRORES FOR RELIANCE
We do agree that your recent involvement in Dhamara port and railway lines to it, TCS center for 1000, and IndiOne hotels are good investments for Orissa. However when one compares them
to your contribution to Jamshedpur/Jharkhand, Mumbai and Kolkata/West Bengal, your contribution to Orissa is way behind and insulting.
THE INVESTMENTS IN ORISSA IS FAR MORE THAN OTHER STATES. THE INVESTEMENT IN WEST BENGAL IS
ONLY A CAR PLANT OF RS 2000 CRORES, MUMBAI THERE IS NO INVESTMENT, JHARKHAND THE INVESTMENT
IS RS 25,OOO CRORES, WHILE THE TOTAL UPCOMING INVESTMENT IN ORISSA, WHICH HAVE ALREADY
STARTED HAPPENDING RS 35,000 CRORES ( POWER, PORT, STEEL, SOFTWARE, HOTELS)
Nevertheless we have great respect for the house of TATAs for their contribution to India as a whole and we hope that you will sincerely reevaluate your give-n-take relationship with Orissa, compare it with you relationship with other states and cities, compare it with other industrialists recent courtship offers to Orissa that I mentioned above, and make urgent amendments. Following are some big and small ticket suggestions that if pursued together by the TATAs will help revive their image among many in Orissa. (As a guideline to what you should spend in total on these you may look at Anil Ambani's offers as a lower limit with respect your future planned investments in Kalinganagar and other places, consider what you have taken from Orissa in the past and what you should have given back to Orissa in the past.) We suggest that you do at least 80% of the following:
(1) You should establish a medical and nursing college and hospital in Keonjhar district where most of the mines you have leased lie. The college should have 50% free seats for students from the districts where you have mined for the next 20 years.
(2) You should establish 10 institutes like the one you established in Gopalpur distributed
across ten industrial districts of Orissa.WHO WILL EMPLOY THEM ? ALREADY WE HAVE 15,000 SEATS IN ORISSA AND UNEMPLOYMENT IS HIGH. WE SHOULD HAVE QUALITY EDUCATION NOT QUANTITY EDUCATION
(3) Besides your planned 1000 employee TCS center in Bhubaneswar, you should develop 500
employee TCS operations in Rourkela and Berhampur each.
THE BHUBANESWAR TCS IS ITSELF 2000
(4) You should contribute half the cost of the Khurda-Balangir railway line or the Talcher-Bimlagarh railway line so that one of those lines can be finished by the Indian Railway on priority basis.
(5) You should further fund the Institute of Math and Application and develop it as a full fledged Tata Institute of Science and Technology aiming to make it at par to IISc Bangalore
(which your predecessors established) in 15 years. THIS IS ALREADY HAPPENING
(6) You should go beyond the R & R requirements of the Orissa government and the Indian government for people displaced due to your operations by allocating each child already born to a displaced family a sum of Rs 300 per month for tuition and Rs 2000 per year for clothes and books, until they are 18, so that they can study in whatever school their parents/guardians choose for them.
I HOPE YOU ARE AWARE THAT TATA STEEL IS INDUCTING EACH DISPALCED FAMILIY IN A CONCEPT NAMED
AS TATA STEEL PARIVAR AND GURANTEEING THEM IMPROVEMENT IN OVER ALL QUALITY OF LIFE INCLUDING
 IMRPOVED INCOME GENERATION WITHIN NEXT 5 YEARS, WHICH IS MORE THAN WHAT HAS BEEN ASKED FOR.
(7) With respect to the land you have accumulated with Orissa government help in Gopalpur, you should either use it in a tax generating enterprize within a year or handover the land back to IDCO (at the cost you received it) so that Orissa can use it for other purposes.
ALREADY SEZ HAS BEEN ANNOUNCED