Democracy produces stability only when it actually responds to the needs of the people. So India is taking steps to neutralize a Maoist rebellion in eastern India by increasing payments to local people being displaced by mining development.
The government will introduce a new bill, probably in the current session of parliament, to raise the payout to affected people and direct large mining firms to link the payment to their profits, B.K. Handique told Reuters.
“It will not only be a one-time payment. We are thinking of giving them annuity throughout the year from their profit domain,” he said.
For years villagers and tribesmen have opposed several projects such as India-focused miner Vedanta Resources Plc’s bauxite mines and POSCO’s proposed steel plant in the eastern state of Orissa.
The protests have been often violent, with Maoist rebels killing people, disrupting mining operations and damaging property in eastern and central India, saying companies were exploiting the region and its mineral wealth.” Reuters, 22 Feb 2010
It will probably increase the costs but what happens when people are forcibly displaced? Remember Peru last year? Months before the violence turned extreme, even the Economist was saying
Peru’s president, Alan Garcia …has granted land concessions for oil and gas exploration, mining, biofuel crops and logging. The problem is that many of these are superimposed on towns, farms and natural parks. That is a recipe for conflict. March 19, 2009
As harsh as it is, relocation is not a sure thing either. Increasingly, though, mining companies are realizing that perhaps better dealings with the people will yield better results.
…a Chinese company, Chinalco, is proceeding with a plan to move Morococha, a town of 5,000 people, to develop a big copper deposit. This whole project will cost over $2.5 billion… The Economist 1/29/09
