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This is an archive article published on September 4, 2008

Protesting too much

Be it Singur, Narmada or the various SEZ projects, activists are blocking them almost for activism8217;s sake...

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Be it Singur, Narmada or the various SEZ projects, activists are blocking them almost for activism8217;s sake, holding up development which would benefit the larger community. Their response to these claims is 8212; why should the poor have to pay for these larger benefits? They are absolutely correct.

But if we accept this premise, it ultimately boils down to the matter of compensation to the affected community This can be structured to ensure a win-win for all, ideally before starting work. Take Singur: the West Bengal government acquired a thousand acres, handed over to the Tatas to establish the Nano project, which apart from providing employment, would also encourage ancillaries to provide further employment and development, and hopefully attract other automobile majors in the future.

The Trinamul Congress TC is now demanding that 400 acres of this be returned to the owners, who resisted this acquisition all along. This is odd timing, given that the world awaits the Nano launch in October 2008, and 85 per cent of the work is completed. Ratan Tata claims to have sunk 1500 crores, not a small sum. As the 400 acres would not be contiguous, they cannot physically be returned. The TC8217;s Shylockian demand calls up the question 8211; what do they want?

Let us now examine some of problems and see if there are some possible solutions:

1. The compensation paid is not fair or too low.

A. This can be examined and a reasonable figure arrived at based on agreed criteria by all stakeholders, if this hypothesis is proved to be correct.

2.The land was acquired 2 years ago and the value of land has increased exponentially and so the compensation is not adequate today.

A. The reason why the land value has increased in this manner is because of the project and the entire surrounding community has gained from this.

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B. The key to being fair is quick disposal of the compensation amounts so that they can be invested. This is what activists should be fighting for and if delayed, penal interest rates should be applied.

3.Farmers are not used to handling large sums of money and would squander it threatening their futures. Can activists engage the help of financial experts to offer financial products to farmers where they would get as much as they were earning and reinvest a part of the earning to take care of future inflation? The compensation to be arrived at could consider such a scheme.

4.The land is fertile and produces 2 8211; 3 crops per year, so projects like this need to be established in a location which is not as fertile. This should have been addressed at the outset. However, as large opportunities are at stake, let8217;s move forward.

A. Is it possible from the land records to identify the actual number of crops grown on each plot and work out the farmer8217;s net earning from a plot, as per available price data?

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B. Based on this could a preference type of share/debenture be structured by the company or state government, where the farmer would be paid for example, 15 per cent of the earnings from the plot for 10 years, after which it would convert to equity? This as a bonus to the farmer for giving up his land, for the larger good.

C. Could land revenue rates be raised to meet some of this cost as the surrounding community would have benefited?

5.Marginal agricultural workers lose their wages from acquired farms.

A. Could a scheme be provided to agricultural workers involving employment in the factory, to ensure better earnings than working on the farm?

6.The project with its ancillaries would promote large employment opportunities for the community. The activists could try and ensure that affected farmers get priority in employment. It is reported that the Tatas have trained villagers in Jamshedpur for employment at Singur. A great step. However it would be interesting to see if displaced farmers families have benefited or cadres of the Government or TC. Could activists ensure that at least one member of the displaced farmer gets employment? This would provide long term insurance for that family.

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7.It is assumed that companies make reasonable profits from their efforts. Could it be arranged that for a 10 year period, 5 per cent of profits go towards addressing the inflation aspect,s especially for marginal agricultural workers? Could government provide adequate compensation for this through reduced taxes?

This kind of structure would apply to most cases of compulsory government acquisition such as SEZs, dams, industrial or housing estates. The affected families should get preference for possible job opportunities for construction and other work, and in the project when it comes up.

The difference with dams is that families get displaced. The relocation needs to be done sensitively by using the skills of the people. State fisheries departments promote fisheries, so, why not use these people as sounding boards for their schemes with their substantial practical experience in fishing? They could also be used as trainers for schemes. Or since they would be good at making nets for fishing, could the handlooms departments engage them in making hammocks or such products?

Providing economic opportunities in rural areas would not only stem migration to urban areas, but help with reverse migration in the future. If I were a rural migrant, nothing is holding me living in urban slums except the lack of opportunities at home. Look at NRIs coming back in droves today. Can we make the same happen for rural India?

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Activists have an important role to play and are required to ensure that the affected community gets more than a fair deal as it helps the larger community. The role they must play is that of a benevolent middleman, safeguarding their constituents8217; interests as well as ensuring new opportunities for them. Protesting without progress helps no one.

The writer is CEO, Grassroots Trading Network for Women

 

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