Wednesday, August 3 2005 16:46 Hrs (IST) - World Time -

Bhubaneswar: Amidst raging controversy over the MOU signed by the Orissa Government with South Korean company POSCO for setting up of a 12 million tonne steel plant, a US-based organization has announced a Rs 22 crore (five million us dollar) fund for rehabilitation of the people to be displaced by the project.

'International Watch', in a release in Bhubaneswar today (Aug 3, 2005), said the tribal rehabilitation fund was meant to ensure 'proper and humane rehabilitation and resettlement of tribals' who would be displaced as a result of the Rs 51,000 crore Korean project.

It said the five million US dollar was the first instalment for the fund and more money would be added as the rehabilitation and resettlement of the tribals moved forward.

Part of the fund would be used to provide micro-economic seed money to tribal entrepreneurs for setting up small businesses, the release said adding as per the Orissa Government's projections around 4,000 tribal families would be displaced as a result of the POSCO project.

'International Watch', whose links with the Korean company could not be ascertained, said it was scheduled to open up an office in Bhubaneswar by August 25 next?

The US organization claimed it was in close contact with Prime Minister Manmohan Singh, All India Congress Committee (AICC) chief Sonia Gandhi, Orissa Chief Minister Naveen Patnaik and various ministers and leaders, encouraging expeditious infrastructure development in the state.

International Watch had made strong pleas to CPI (M) and BJP

'International Watch', the sources said, had made strong pleas to Communist Party of India (CPI) Marxist (M) leaders Prakash Karat and Sitaram Yechuri in favour of the POSCO project. It had also contacted Bharatiya Janata Party (BJP) President L K Advani, CPI general secretary A B Bardhan and Swadeshi Jagran Manch leadership, among others.

The organisation had also requested each political party to nominate a representative to the board of the tribal rehabilitation fund, it said.

Referring to the strong opposition being faced by the state Government from certain political parties and Swadeshi Jagran manch, it said some major domestic steel conglomerates were also opposing the project.

"Such opposition might derail the project, the largest Foreign Direct Investment (FDI) in the history of India", the source said adding Orissa was one of India's most impoverished states with approximately half the population living below poverty line.

"POSCO of South Korea is the first international conglomerate to come to India with a serious proposal and serious money", it said while claiming " POSCO's investment the plant, the port and the mines will lift thousands of poor citizens off a life of abject poverty."