Hills in the north-east corner of ap

AnRak Aluminium bordering Odisha.

Another Vedanta in the Making? The AnRak Project

A number of memoranda of understand-
ing (mous) to set up alumina plants were
PATRIK OSKARSSON signed by the erstwhile Y S Rajasekhara
Ředdy (ysr) government between 2005
A bauxite/aluminium project very and 2009. Under these mous, the ap
of central India has become one government would, together with private
similar to the Vedanta project in
Bauxite of of the of
central most
the miningmost
India controversial in has the become tribal issuesissues
controversial areas one in in companies, extract and refine bauxite
Odisha is coming up in
ore. However, while the proposed Jindal
the country and has faced significant op-
Visakhapatnam district of Andhra
position South West (jsw) and nalco projects
locally as well as nationally, the
Pradesh. AnRak Aluminium, a
most notorious in recent years beinghave hit roadblocks, aal has secured all
the Vedanta Aluminium Limited (val)
clearances for its refinery and smelter
company of the government of
project at Lanjigarh in Odisha. A number
complex. Construction is now in progress
Ras al-Khaimah of the United
of similar struggles have been witnessed
at the site in Makavarapalem in Visakha-
Arab Emirates and Penna Cement
in other areas as well including Kashipur
patnam district though the construction
of AP has secured approval for Odisha and the agency areasof roads and other infrastructure for the
in south
of Visakhapatnam
both an aluminium complex and in Andhra Pradeshmines remains incomplete due to signi-
(ap). Though the Fifth Schedule of the
ficant local opposition.
the bauxite mines, but the final
Indian Constitution provides protection In February 2007, a mou was signed
forest clearance for the mines is
to the adivasi (tribal) people living inbetween the ap government and the
awaited. The AnRak project hasareas, also known as agency
scheduled government of Ras al-Khaimah (rak), a
areas, across nine states from alienation
member of the United Arab Emirates, for
replicated the Vedanta model of
of their lands and natural resources to mining and refining bauxite under which
first building the refinery and
non-tribals, one sees that rather than
the ap government promised to supply
then setting up the mine. The the adivasi people's rights to
upholding bauxite via the ap Mineral Development
mine is to be operated by the
land and state Corporation (apmdc), a public sector
resources, government is col-
luding
government to circumvent with private investors to usurp
the entity owned by the ap government, to
these rights. the alumina refinery to be established
ban on non-tribal landownership.
by aal. apmdc would mine the bauxite
At present, the National Aluminium
In fact, the state government
Company (nalco), a public sector under- in the Jerrela Hills of Visakhapatnam
has disregarded the huge taking (psu), is the only company per- district, a scheduled area, and supply it
mitted to mine bauxite in southern to aal's refinery, which would be built
environmental and social impact
Odisha, which it has been doing since outside the reserved tribal area. This
and popular protests against
the early 1980s. However, val haspeculiar not set-up was apparently employed
mining bauxite in the Jerrela
given up hope of mining bauxite in to circumvent
the the tribal land transfer

Hills, inhabited almost exclusively

Narayangiri Hills near Lanjigarh,legislation
further south in ap, AnRak Aluminium
by adivasi tribes who will
be displaced, to safeguard
to gain access to bauxite deposits in
private gain. the state.
Patrik Oskarsson ( poskar@gmail.com ) is
Assistant Professor at the Azim Premji
University, Bangalore.
and that bans private ownership
of land in the scheduled areas in ap.1
Ltd (aal) has made significant efforts
The ap government did not make any
announcement about the signing of this
mou. It was only a month later that an
Andhra daily published a news report
This article questions why aal is being
allowed to become another Vedanta about
bythe venture. At that time little was
following the controversial approach known
of about rak, which was chosen as
splitting bauxite mining and alumina
an investment partner over other inter-
ested companies such as public sector
refining in two parts. Like the experience
of the Dongria Kondh adivasis innalco.
the Indeed, rak did not have an office
Niyamgiri Hills in Odisha where or val
a website at the time; its registered
had made exaggerated claims, aal office
too was a family house in the Jubilee
is silent about the fate of the Kondh
Hills area of Hyderabad. The choice of
and other adivasi communities living
rak as a business partner was unexpected
given that it had no previous industrial
in the proposed mining area of Jerrela

Economic & Political weekly CEE3 December 29, 2012 vol xlvii no 52 29

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experience, not to mention any expertise The main criteria for the selection of a
of Rs 7,000 crore on 1,380 acres of land.
in aluminium. It does have a ceramic Even though the Environmental Impact site next to Makavarapalem appears to
tiles business in ap and as a small, rich be that it was outside the scheduled area,
Assessment (eia) report made it clear that
kingdom in west Asia, it has money the company intended to double output
had a canal next to it to provide water
and oil that could be used to produce in the future, there was always some
and crucially, consisted largely of the
aluminium. Indeed, many west Asian amount of uncertainty about its plans
so-called assigned land, which has come
(Ministry of Environment and Forests
countries such as Dubai, Oman and Qatar to be so popular for industrial projects
2008b; Bs Envi Tech 2008). aal now
are currently either expanding or invest- in ap due to its weaker protection of
reports that it has 1,926 acres of landtenants.6 Also, following common practice
ing in new aluminium smelters fuelled
available
by cheap access to natural gas and oil, (AnRak Aluminium Ltd 2012b)in ap and following Vedanta's example
where
and the rak project is likely to fit into a significant construction work isat Lanjigarh, it was decided to acquire
plan of exporting alumina to a smeltercurrently
in underway. It is unclear whenagricultural land but to circumvent the
west Asia in the future. the complex will be completed; however,villages (Oskarsson 2010; Amnesty Inter-
In 2007, there were rumours about the company's website says productionnational 2011). A visit to the site in June
would commence in June 2012, which2012 made it clear that the villages
the involvement of the locally influential
has already passed. If news reports areremain within metres of the proposed
Penna Cement group in the deal but this
could not be substantiated (Oskarsson correct, it appears that the aal manage-site and its polluting activities. Living
ment is worried about where it will
2010). In 2012, however, this connection next to a polluting industry without any
job appears to be what the aal eia refers
get its ore from since enquiries are being
is clearly evident on the aal website which
says, "AnRak Aluminium Ltd commenced to as land acquisition with "minimum
made about getting supplies from Gujarat
or central India (Patnaik 2012). It is
as a joint venture between Penna group relocation" (bs Envi Tech 2008: 149).
of industries and Ras Al Khaimah Invest-
interesting to note that even as aal is Little is known about the actual land
moving ahead to finish constructing its
ment Authority with 70:30 ratio" (AnRak use before aal moved in. According to
Aluminium Ltd 2012a). A local leader plant, Vedanta's Lanjigarh refinery has the aal eia, "[sjugarcane was the most
suspended operations as it does not extensively grown crop with coverage
opposed to the project at Makavarapalem
described the aal management as beinghave sufficient ore.5 Is this the future of of about 66% of the cropped area. [...]
aal as well?
mainly the Penna group with little oper- Paddy was the second prominent crop
ational influence exercised by rak.2 But covering about 21% of the cropped area"
Land
Acquisition
if the Penna group is the main promoter, (ibid: 77). An moef inspection team
the question is why is the company
Unlike val, aal was able to avoid a public
further reported that "most of this area
called AnRak rather than AnPenna? hearing prior to land acquisition. Thiswas
is under casuarina plantation. Remain-
Is this because there is an attempt one
to mandatory point of information ing area was under paddy, sugarcane,
camouflage the close links between the mango, chilies, etc. Only about 200 acres
sharing and public debate that has, despite
its many deficiencies, remained some-
promoters and the ysr regime that could were under irrigated cultivation" (Ministry
have hampered the deal? The Penna
what of a stumbling block for projectsof
in Environment and Forests 2010: 36).
Cement group was founded by P Pratap According to these sources, though the
ap. In aal's case, however, the ap govern-
Reddy, treasurer of ap Congress during site was cultivated, it was perhaps not of
ment found an innovative way to circum-
the ysr years, and described as a close
vent the process. By notifying the area
the best agricultural quality.
for the aal complex as a special eco-Another concern for local residents
associate.3 With other ap Congress mem-
bers also believed to be investing in nomic
the zone (sez), it was possible for the
and Visakhapatnam city residents is the
project, it is not surprising that the
government to acquire the land without
38 million litres of water per day that has
a public hearing and thus also without been
project has been accorded extremely an allocated to aal from the contro-
versial Polavaram project (gvmc 2008).
eia report, which would have given some
high priority, enabling it to catch up with
the jsw project in implementation.4 detailed information to those affected. The
But Visakhapatnam city is already starved
The initial secrecy surrounding the of water and since the Polavaram project
ability to do this rested on the technicality
deal and the subsequent speed at which
that a multi-product sez is viewed as is anmired in litigation, it is not certain
it has moved, together with the close
industrial park that would have to have when, or if, there will be any water
a number of companies before it could
political contacts and charges of corrup- available at all. Significant protests in
tion, give the impression that this is be
yetassessed on environmental merits. In the city as well as litigation have been
another investment made for political the Makavarapalem sez there was onlyresorted to but without success ( The
rather than public gain. The original one company in the park and it was well-Hindu 2008b, 2009).
environmental application for aal was known
for that it was going to be aal, but Despite the uncertainties related to
a 1.5 MTPA (million tonnes per annum) the principle remained. When the publicwater and land, as well as, or perhaps
refinery, a 0.25 mtpa smelter, andhearing
a was held on 7 June 2008, all the because of, aal's close political con-
90 Mw power plant at Makavarapalem
land was already in the government's nections with the ap Congress, the alu-
in Visakhapatnam district of ap at a cost
possession and there was no protest. minium complex may be completed soon.

30 December 29, 2012 vol XLVii no 52 rarH Economic & Political WEEKLY

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However, uncertainty remains over where first level clearance, known as Stage 1, mines will supposedly affect the exact
the bauxite will be sourced from despite and is awaiting Stage 11 approval. same 66 villages. But for want of details
some progress for the proposed Jerrela apmdc, the state mining company about who the affected people actually
mines in the official approval process. which was on the verge of closure in the are, the eia falls back on statistics since
1990s after mounting losses, has drasti- its consultants did not survey the area
The Proposed Mines cally reduced its workforce. Yet it has thoroughly. The report is clear only
Opencast bauxite mining has been pro- been taking part in an increasing number about the consultants' visit to five of
posed for the Jerrela group of hills to of major deals in recent years. On the the more accessible villages (Indian
provide ore to aal's alumina refinery. ground, it has only one mining operation Council of Forestry Research and Edu-
The Jerrela group, close to Chintapalli in - a black marble mine in Kadapa district cation 2008) but news reports indicate
Visakhapatnam district and about 90 km in southern ap. And with only 230 em- that a police escort was required even
from the aal site, contains 246 million ployees currently on its payroll and strict for this brief visit to the area ( The
tonnes of bauxite. These blocks, like other limits on recruitment, the numerous new Hindu 2008a).
bauxite hills in ap, are different from mining projects proposed in its name do The J C Kala Committee was appointed
those in Odisha in that the hills here are not indicate increased mining activity by the moef in late 2011 to clarify the
smaller and pointier with thick deposits by the company; rather it is apmdc's social and environmental impact of
compared to the widespread but thin mine planning section that has taken on bauxite mining in Visakhapatnam. How-
deposits of the latter. In ap, this means a more important role in recent years. ever, this committee could not travel to
that mining will take place on several With its close connections to the state Jerrela due to local protests and there-
smaller hills at the same time with no in- mines and geology department, thefore relied on the same material as the
stalled infrastructure like, for example, mine planners are in a prime position toearlier eia consultants, apart from a brief
nalco's conveyor belt at Panchpatmali apply for new deposits allotted on aaerial survey. The sum of all existing re-
in Odisha. Instead, it seems likely that first-come-first-served basis when these ports is that precious little is known
simple roads will be built to the top of become available (Oskarsson 2010). Ac-about the people who live in the Jerrela
the hills for trucks to transport the ore, tual mining activity, including blasting,area and there is really not much to go
further increasing forest loss. digging and transporting of ore in theon when attempting to understand who
The bauxite deposits in Jerrela are Jerrela Hills, have been assigned to anwill be affected by the mining and how.
proposed to be mined by apmdc in four unspecified "mining contractor", assumed Chintapalli is known for having a
so-called blocks, best understood as four to be a private contractor (Indian Councillarge number of inhabitants of the
separate hillocks within the Jerrela Hills of Forestry Research and EducationKondh adivasi group, the largest of all
area. Mining was initially planned over 2008: 180). groups in Odisha, but also present in ap
1,162 ha in four Jerrela blocks with 3.5 especially as a result of migration since
The Invisible Lives the 1950s. At least one lakh Kondh now
MTPA produced (Ministry of Environ-
ment and Forests 2008a). However, But what about the social impact liveof
in Visakhapatnam district alone.
though mining was proposed in four the mines? The Jerrela eia identifies The other main groups in Chintapalli
blocks, only one detailed eia report hasfour types of tribes: "Valmiki, Kondu,are Bagata and Valmiki, and a number
been made, and that too for the smallestKonduera and Bhagata" (ibid: 34). Doesof other tribes, including Gadaba, also
Block i. The report merely repeated thatKondu refer to the Kondh? And what exist in this very diverse region on the
the other three blocks would be mined is Konduera? Though such details are border of south and central India (Com-
in the same way. This approach was not provided by the eia, it does go onmittee for Relief to Girijan Victims of ap
approved by moef in November 2008 to say that these groups "eke out their1987). One of few available reports on
and later verified by the now defunct livelihood from a range of occupationsthe people of Chintapalli mandai (block)
National Environment Appellate Authority that include hunting, gathering minorstated in the 1980s that "[t]he informa-
(neaa) in an appeal (National Environ- forest produce, horticulture, slash-and-tion so far recorded regarding the eco-
ment Appellate Authority 2009). After the burn ( podu ) agriculture, and dry-wetnomic conditions of shifting cultivation
environmental clearances were secured, cultivation" (ibid). There are 31 villagesin ap is very scanty. No detailed study has
the mining area changed to Block in and within 5 km of the Jerrela Block 1 mine,been conducted probing into the cultural
the production estimates were increased and 66 villages within 10 km of Block 1,background of the tribais who are prac-
to 3.85 MTPA (Ministry of Environment which are almost entirely inhabited bytising shifting cultivation" (Menon and
and Forests 2009). At this rate of mining, adivasi people. The eia figures are basedNag 1988). This, unfortunately, contin-
Block m will last for 17 years while the on Census 2001 data and have not ues to be true. The only thing that has
total ore deposits of 224.60 million been updated. changed is the reason for displacing the
tonnes will be sufficient for about 60 years The same social impact is apparently tribes from forest conservation in the
of aal's operations. The sole approval true for the other proposed mines as 1980s to mining in the 2010s.
remaining for Jerrela is the forest clearance well. Though spread across more than Compared to most tribal groups in ap,
from moef. aal has already received the 1,000 ha, the four blocks of bauxite the Kondh do not speak Telugu natively,

Economic & Political weekly E33S3 December 29, 2012 vol xlvii no 52 31

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thereby creating a barrier to integration - two elected representatives have been While this article has described the
into the state. The main issue between killed, one in 2007, and another in 2010 close support aal has received from
the Telugu-speaking "local" tribes and( The Hindu 2007; Oneindia News 2007; leading state-level politicians, sections of
the Kondh is that the former have beenNarasimha Rao 2010). the central government have expressed
able to cultivate land outside of the The counter-insurgency operations have concern about the consequences of
placed the entire area under significant mining. Union Tribal Welfare Minister
reserve forest and get at least some form
of recognition of the right to use this
strain with a majority of the population and Visakhapatnam mp Kishore Chandra
caught between two sides known to Deo opposes the project and has asked
land for settled agriculture and coffee
use violence in favour of their causes, the ap governor to cancel the mining
cultivation. The Kondh, on the other hand,
despite having lived for many decadeshistorically as well as in the present leases. Similarly, Union Rural Develop-
now in ap, continue to use marginal (Balagopal 1988, 2006). Local activists ment Minister Jairam Ramesh has voiced
find themselves either framed as govern- concern (Sehgal 2012; Deccan Chronicle
borderland areas for shifting cultivation
and forest product collection. ment collaborators or as Maoists, depend- 2012). The cpi and cpi(m) along with
Since the Kondh living close to the ing on the position they take vis-à-vis many non-governmental organisations
Odisha border do not have recognised mining. In this tense scenario, very little (ngos) and other groups are also pro-
landholdings, and their villages do spacenot exists for a peaceful resolution oftesting against the unpopular bauxite
appear on official maps, they remain issues. Also, it is not completely insigni- mining part of the project. In the mean-
ficant that the Communist Party of India while, landowners at the aal site in
invisible, or at the very least at an unclear
state, when environmental consultants
(Marxist) - cpi(m) - and Communist Party Makavarapalem have received some cash
of India (cpi) enjoy some support in the for their land but will have to continue to
make their eia reports. The topographic
area. A network of local journalists dis- live Vedanta-style right next to a pollut-
map from 1983, which is the most detailed
map available in the public domain,
seminates information of daily events; ing alumina complex without any mean-
shows a handful of villages in the valleys
and, away from Jerrela a large number of ingful way of making a living.
individuals and organisations support
surrounding the Jerrela group of bauxite The project is now moving ahead
reserves, but otherwise shows the landthe tribal people (Oskarsson 2010). It is despite significant political as well as
Actloose network, which forms the anti- local opposition, particularly in relation
as a reserve forest. The Forest Rightsthis
bauxite movement that can prevent an- to the mines. That the company is willing
has so far not been able to make signifi-
cant changes to this picture. While some
other Vedanta in Visakhapatnam district. to spend thousands of crores on an un-
individual titles have been issued, the certain project is quite surprising. Is it
Conclusions
general experience in the bauxite min- that strong political support makes the
At
ing area is that applications are denied present, aal is pursuing its alumina
company certain that mining will even-
without reason, even when not inter- tually
project with scant, if indeed any, public start? At this juncture, when the
benefit while concealing adivasi groups
fering with the immediate area planned state is in a political crisis due to internal
for mining (Rebbapragada et al 2010). political party feuds, corruption accusa-
in the proposed mining area from official
Chintapalli has also for a long time tions, and the Telangana struggle for
plans. Instead of moving towards increased
transparency for contentious mineral
been the base of Maoist groups but lately statehood, it is not clear how anybody
development, the aal project has can
the AP government's special police have moved
be certain what will happen. Even if
managed to drive these groups across the refinery starts operations without
towards further camouflaging intentions
the border to Chhattisgarh and Odisha.
and preventing deliberations. Theguaranteed
actual ore supplies from nearby, it
will
investors were unknown for a long
However, the security situation remains be a loss-making affair just like the
time.
tense and the Maoists return from time Once it became clear that Penna Cement Vedanta Lanjigarh refinery.
to time. Nowadays, much of the violence was in fact the largest shareholder, ques- The Dongria Kondh are the invisible
is related to the unpopular bauxite min- tions were naturally raised both aboutadivasis of the Jerrela Hills, but their
ing. One example of this is how the work the company's lack of relevant experi-
numbers are not known. The moot ques-
tion is how do they make a living at
to improve a road meant to transport ore ence in the industry as well as its close
by trucks down the hills to the refinery political connections, rak is also with-present and what will they do in the
was disrupted in June 2012 by a Maoist out previous experience in aluminiumfuture if this mining project goes ahead.
Official
group. In this attack, construction workers and seems to disproportionately invest plans do not answer these
were beaten up and machinery set on in AP, again raising questions about important questions in a meaningful way.
fire. This was close to Chintapalli town, the influence of ap Congress politicians.If the project continues, we will never
i e, before the road had come close to the And APMDC appears mainly as a frontknow since these peoples will simply
proposed mining area around Jerrela, for private miners (who are banned in have to get up and leave.
more than 15 km away, indicating that the ap scheduled areas) given that it
the actual mining will happen only many has no experience of bauxite mining, noNOTES
years in the future. Maoist violence has manpower, and no equipment to get
1 The Andhra Pradesh Scheduled Area Land
affected other supporters of the mining the work done. Transfer Regulation 1959 as amended up to

32 December 29, 2012 vol XLVii no 52 Q223 Economic & Political WEEKLY

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Orissa (London: Amnesty International vember
UK).2012, http://news.0neindia.in/2007/ cessed on 17 March 2010, http://www.thehindu.
Anrak Aluminium Limited (2012a): "About 05/29/maoists-shoots-zp-vice-chairman-to-
Us", ac- C0m/2009/07/3i/st0ries/2009073i60i70300.
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Economic&PoliticalwEEKLY
Balagopal, K (1988): "Chintapalli Again: One
Eventful Day in a Lawless Life", Economic & Po- EPW 5-Year CD-ROM 2004-08 on a Single Disk
litical Weekly, 23(5): 180-83.
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varipalem Mandai, Visakhapatnam District,
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Committee for Relief to Girijan Victims of AP
researchers and executives in government and non-government organisations, social and political
(1987): Chintapalli Arson Case-Petition, Calcut-
ta, accessed on 20 August 2012, http://www. activists, students, corporate and public sector executives and journalists.
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Indian Council of Forestry Research and Education
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sessment and Environment Management Plan for
Jerrila Block I Bauxite Mines, Visakhapatnam Circulation Manager,
District, Andhra Pradesh, Dehradun, India. Economic and Political Weekly
Menon, T C and J Nag (1988): Report on the Chinta- 320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel,
palli Arson Case, Indian People's Human Rights Mumbai 400 013, India
Tribunal, Delhi, accessed on 20 August 2012,

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