Dear all:
Ratan Tata is scheduled to visit Orissa in a few days.
(I think Samaja/Sambada mentioned the date as Sept 6th.)
I think we should write to the Tatas with cc to the CM regarding how
the Tatas having taken a big chunk of Orissa's minerals have given very little back.
Following is a letter that I am sending. Please read it, and
write your own letter (feel free to cut-n-paste the parts
you agree with, make modifications according to your taste etc.),
remove my name and sign your own name,
and send it to the TATAs with cc to the CM. Please ask your friends
to do the same.
I have tried to do my best in researching the issue. Let me know if i missed
something.
best regards
Chitta
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Open letter to Mr. Ratan Tata and Mr. B. Muthuraman of Tata Steel
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To:
Mr. Ratan Tata,
Chairman
S/o Mr Nowroji Hormusji Tata Bakhtavar
163, Lower Colaba Road
Mumbai 400 005
Mr B. Muthuraman, Managing Director,
muthu...@tatasteel.com
cc: Dr T. Mukherjee, Deputy Managing Director (Steel),
dmds...@lot.tatasteel.com
Subject: From mineral resources to human resources in Orissa
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.
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.
From the above one can compare how you have treated Orissa vis-a-vis
other states.
Where is the Orissa equivalent of a TIFR or TISS?
Where is the Orissa equivalent of a cancer center that you have in
Mumbai and are building in Kolkata?
Where is the Orissa equivalent of a Rs 25 crore/year towards health
of BPL that you agreed for Jharkhand?
Where is the Orissa equivalent of the Rs 150 crore for sports
facilities in Ranchi?
Where is the Orissa equivalent of manufacturing industry like the 1
lakh car plan that you are setting up in West Bengal?
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) and
7.7.98 (Keonjhar, 16.3 hectares, manganeese, 20 yrs).
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-a-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]
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]
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.
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.
(3) Besides your planned 1000 employee TCS center in Bhubaneswar,
you should develop 500 employee TCS operations in Rourkela and
Berhampur each.
(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.
(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.
(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.
(8) You should contribute an amount similar to your contribution to
Jharkhand for funding the health for BPL families in the backward
districts of Orissa.
sincerely,
Chitta Baral
Arizona State University
USA
chi...@gmail.com
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[1]
http://www.iitmadras.org/oaa/daa/list/1997/[2]
http://orissagov.nic.in/steel&mines/pdf/Manual-13.pdf
[3]
http://www.tatasteel.com/company/investments_Dhamra.asp
[4]
http://www.tata.com/tata_steel/media/20050421_orrisa.htm
[5]
http://www.tatasteel.com/company/Orissa.asp[6]
http://www.tata.com/0_our_commitment/community_initiatives/institutes/index.htm[7]
http://www.expresshealthcaremgmt.com/20050915/news02.shtml
[8]
http://www.hinduonnet.com/businessline/2001/10/30/stories/12301801.htm
[9]
http://indica.co.za/tata_steel/releases/20050822.htm[10]
http://www.tatasteel.com/company/ORISSA_keonjhar.asp
[11]
http://www.tatasteel.com/company/ORISSA_chromite.asp[12]
http://www.tatasteel.com/company/ORISSA_belpahar.asp
[13]
http://www.tatasteel.com/company/ORISSA_spongeiron.asp[14]
http://www.tatasteel.com/company/ORISSA_relief.asp
[15]
http://www.tata.com/tata_steel/media/20051227.htm[16]
http://www.tatasteel.com/company/ORISSA_courtship.asp
[17]
http://steel.nic.in/GRANT%20OF%20MINING%20LEASES.pdf[18]
http://www.tatasteel.com/company/ORISSA_intimatebond.asp
[19]
http://www.tatasteel.com/company/ORISSA_joda.asp[20]
http://www.businesswireindia.com/PressRelease.asp?b2mid=10309
[21]
http://www.thehindu.com/2006/07/22/stories/2006072202921800.htm[22]
http://www.rediff.com/money/2006/jul/22anil.htm
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