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In addition to the resistance offered by
local farmers, critics also turned the spotlight on what they
alleged was ArcelorMittal's poor environmental and social
record. They cited instances of the company being hauled up for
its business practices in other countries.11
However, the company was quick to give the assurance that it
would address local concerns and also create job opportunities
(5,500 direct and 15,000 indirect jobs respectively). |
Malay Mukherjee, a member of ArcelorMittal's
executive board, said, "We are aware of protests against mega-industries
in Orissa but our approach is different and we will certainly satisfy
the society and take all possible measures to involve the local
population."12
In addition to pledging support to the community, the company
commissioned a New Delhi-based consulting firm IL&FS EcoSmart Ltd. to do
a socio-economic survey and prepare the Relief and Rehabilitation (R&R)
package for people affected by the project.
The company also said that
it would take the Orissa government's R&R policy13 as a guideline for
designing the compensation package.
In early 2008, as the company prepared to put the US$20-billion project
into action, it announced huge community investment plans. In February
2008, the company announced a US$250 million budget for the R&R of
displaced villagers in the two states.14
It also announced plans to establish industrial training institutes, one
in each state, to train young people. In Jharkhand, the company
announced that it would sponsor hockey tournaments and a sports academy.
The company felt that its community-based approach would help it gain
the trust of the communities and also lead to development.15
In April, the company announced that it had earmarked US$500 million for
CSR programs in Orissa and Jharkhand. This would include rehabilitation
of colonies for people who were displaced from their lands due to the
project, compensation to affected families, and provision of basic
infrastructure such as roads, electricity, water, sewage disposal system
and sanitation.16
In a workshop titled 'Development Initiatives for a Better Tomorrow'
held at New Delhi, ArcelorMittal's vice-president (CSR), Remi Boyer
(Boyer), said, "We will spend about $500 million in Orissa and Jharkhand
to achieve an appropriate balance between the Corporate Responsibility
(CR) and the growth in business operations…
This workshop is the first step in changing all stakeholders in a
transparent and regular basis. This is part of the responsible
leadership we want to promote in all our operations."17 Boyer had come to
India with a delegation to review the CSR work in the two states.
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11] Sunita Dubey, "Will Mittal Steel be a
Raw Deal for Orissa?" www.indiatogether.org, August 8, 2007.
12] "Indian Villagers Protest Site of Arcelor Mittal
Plant," www.singur-singur.blogspot.com, January 27, 2007.
13] In 2006, the state government of Orissa
introduced the R&R policy that requires investors to provide a house for
every displaced family, a job to each adult, or cash compensation and
options on preferential shares.
14] Rajesh Chhabara, "Asia-Pacific: ArcelorMittal
- India Steels itself for Land Battles," www.ethicalcorp.com, April 8, 2008.
15] "ArcelorMittal Finalising Blueprint for
India Plants," www.sify.com, February 7, 2008.
16] "ArcelorMittal to Spend Rs 2400 Crore
Towards CSR," www.zeenews.com, April 20, 2008.
17] "ArcelorMittal Plans to Spend $500 mn
on CSR Initiatives," www.economictimes.indiatimes.com, April 18, 2008. |
