Chapter=3

The Sponge Iron Factories in Sundergarh District of Orissa: Some Empirical and Policy Issues

Industrialisation is a wide ranging process. It implies not merely development of certain

industries but certain basic changes in the structure, technology and organization of

economic activity. From the economist's point of view, industrialization process is a

change in the mode and organization of production- being based upon machines run by

power and bureaucracy which is the social structure, coordinating the activities of men

and machines for the end of producing a marketable commodity. Simultaneously from

the anthropologist's point of view, industrialization is the emergence of a new culture,

presupposing a whole range of new social structures which must be articulated with a

prior culture (Gould 1961). Thus it brings about a transformation of a simple and non­

antagonistic economic system into a complex and multi-dimensional controlling system ..

Average incomes in agriculture are typically lower than incomes in the industrial sector,

and so economic development has become almost synonymous with increasing

industrialization in nearly all countries.

Orissa has huge resources of iron ore. According to a report in Steelworld, Orissa is

endowed with huge natural resources, especially iron ore. The foremost advantage for

sponge iron factories in the state is easy logistical support. The long coastline has proved

beneficial for existing factories and will enable the cheap export of finished goods to all

possible locations. As a result Orissa has become an attractive destination for steel

makers. l According to the state authorities, Orissa's Gross Domestic Product (GDP) is

targeted to grow at over 7% in the next 10 to 12 years.2 The bauxite deposits of Orissa

have been identified as the biggest reserve of quality bauxite, comparable to the best in

the world, attracting global mining giants like the 15 billion BHP Billiton.3

I Orissa flooded with Iron and Steel Plant proposal, August 1999, Research paper, SteeJworld.com

~ India Infoline News, August 5, 2005.

} Kumar's big bets, Business World, September 29, 2004.

79

In a bid to encourage public sector investment in sponge iron factories, the planning

commission set up a 24-member high level committee headed by the retired bureaucrat

Anawarul Hoda. The committee suggested ways of simplifying and streamlining the

existing procedures for granting reconnaissance permits and leases for sponge iron

factories. Apart from Mr.Hoda as chairman and the Secretary General of the Federation

of Indian Industries as industry representative, some of the other members of the

committee included the secretaries of the ministry of mines, steel, environment and

forests, shipping ,.road transport, highways and revenue, the railway board chairman, the

director general geological survey of India, the controller general, Indian Bureau Of

Mines as also the secretaries (mining) of Rajasthan, Orissa, Karnataka, Chhattisgarh and

lharkhand. Apart from it the policy objectives as per the Factories Act of 1948 and Orissa

Factories Rules 1950 were laid down as follows:

Survey and Identification of Displaced Families

Ordinarily within two months of publication of notice for acquisition of land for

development, a socio-economic survey would be undertaken in the manner to be decided

by the government for identification of affected families and for preparing their socio­

economic baseline. The list of affected families so approved will be displayed at

Collectorate / Block! Tehsil / Panchayat and other conspicuous locations for wider

dissemination. A socio-cultural, resource mapping and infrastructural survey shall be

conducted by an independent agency to be identified by the government to ensure proper

benchmarking. It will be the responsibility of the concerned authority to conduct the

survey within two months of notifying the intention to acquire land under lhe provisiulls

of the relevant laws or under the provisions of this policy. A comprehensive

communication plan for awareness creation shall be formulated and executed in the

affected area. The detailed modalities of this exercise that includes involvement of civil

society will be notified by the government. The cost of implementation of this

communication plan shall be borne by the concerned authorities. The gram sabha or

80

panchayats at the appropriate level shall be consulted in the Scheduled Areas 4 before

initiating land acquisition proposal.

Sundergarh District: Bonai Block, Lauhnipara Block

Sundergarh district was constituted on 1 lanaury 1948 out of the 2 ex-states of Gangpur

and Bonai, which merged with Orissa on that day. True to its name, the beautiful

district of Sundergarh with about 43% of its total area under forest cover and numerous

colourful tribes dotting its landscape and with abundant mineral resources is bounded

by Ranchi district of lharkhand on the North, Raigarh district of Chhattisgarh on the

West and North-West, lharsguda, Sambalpur and Angul districts of Orissa on the South

and South-East and Singhbhum district of lharkhand and Keonjhar district of Orissa on

the East. The topographical location of the District is 21 *36N to 22*32'N latitude and

83*32'E to 85*22'E longitude. The total geographical area of the District is 9712

sq.kms out of which the forest cover constitutes 4232.57 sq.kms. It is the second largest

district in the State accounting for 6.23% of the total area. The total population of the

district is 15, 73,617 out of which the scheduled tribes constitutes 7,98,481 and

scheduled castes constitutes 1,38,157. The scheduled tribes population is the second

largest in the state accounting for 50.69% of the district population. The scheduled

castes constitute 8.76% of the district population. The total literacy rate of the district is

65.22%. Taking into account the socio-economic features of the district it can well be

said that the district provides a strong grounding for the operation of the sponge iron

factories. The total cultivated land of the district is 3,36000 hectares out of which the

high land constitutes 1,86,000 hectares which is uncultivated and uninigated land. The

low and medium land is 1,50,000 hectares. Broadly speaking, it is an undulating

tableland of different elevations broken up by rugged hill ranges and cut up by

4 In the Constitution. the expression "Scheduled Areas" means such areas as the President may by order declare to be Scheduled Areas. See the Scheduled Areas (Part A States) Order, 1950, the Scheduled Areas (Part B States) Order, 1950. the Scheduled Areas (Himachal Pradesh) Order, 1975 and the Scheduled Areas (States of Bihar, Gujarat. Madhya Pradesh and Orissa) Order, 1977.ln the PESA, Panchayats (Extension to the Scheduled Areas) Act, 1996, unless the context otherwise requires. "Scheduled Areas" means the Scheduled Areas as referred to in clause (I) of article 244 of the Constitution.

81

torrential hill streams and the rivers Indravati and Brahmani. The general slope of the

district is from North to South. Because of this undulating, hilly and sloping nature of

landscape, the area is subject to rapid runoff leading not only to soil erosion but also to

scarcity of water, the most essential for agriculture. The average size of the operational

holdings of the district is only 1.73 hectares, out of which if we take into account the

class-wise number of operational holdings, the marginal farmers (owning 1-2.5 acres)

of land are more numbering 65,281 whereas large fanners constitutes a miniscule

number only 584. So the agricultural base is weak and since the region is endowed with

rich natural resources like iron ore, manganese, bauxite, dolomite there is a vast scope

for mineral based industries.

I have chosen Bonai and Lauhnipara Blocks in Sundergarh District for my study, as out

of seventy sponge iron factories in the district, thirty are found in Bonai and Lauhnipara

Blocks.

The scheduled tribes population in Sundergarh district is second largest in the state, •

constituting 50.69%. There are total seventeen Blocks in the district, and the largest

concentration of scheduled tribes population is found in Bonai and Lauhnipara Blocks.

The scheduled tribes population in Bonai Block is 54.1 0% and in Lauhnipara Block it is

66.60%.

Bonai Block:

Bonai started functioning as Bonai West Block with effect from 13.04.1954.

Subsequently it \vas bifilrcated into T\vo R!ocks namely Ronaig!lTh ~nrl (lunlndla in

1961, coming under Integrated Tribal Development Agency (ITDA)5 Bonai from

01.04.1972. The total geographical area of the block is 2934.21 sq.kms. The total

population of the Block as per 2001 census is 62,414 out of which the scheduled caste

5 Tribal development initially was a part of the Community Development Programme. Later, the Blocks with larger tribal population were designated as tribal development Blocks. In the Fifth Plan, Blocks with 50% of its population as tribals were grouped together into a number of Integrated Tribal Development Agencies.

82

constitutes 7,825 (12.53%), scheduled tribes constitute 33,772 (54.10%) and the other

castes constitute 20,817 (33.35%) respectively. The total no of gram panchayats in the

Block are 13. I have taken up two gram panchayats namely Bonai gram panchayat and

Kendrikela gram panchayat for my study as the focus of my study is sponge iron

factories and thirty sponge iron factories are found in these regions. The major ones are

ORES ISPAT, Reliable Sponge, Vishal Mettalicks, Dua and Dua, Siva Mett<'llicks,

Mahakali Ispat In all I have taken up five villages where the above factories are

situated. The respective villages are as follows:

Table: 1

The Villages Taken up for Study in Bonai Block

Sl.No Gram Panchayats Villages

1 Bonai Barhamusa

2 Bonai Jhaliabema

3 Kendrikela Dariekela

4 Kendrikela Pandrisila

5 Kendrikela Upperbahal .- ----

Source: Block Office, Bonai

Village Barhamusa, Bonai Gram Panchayat of Bonai Block

Total Population ST SC Others

724 467 92 165

83

Village Upperbabal, Kendrikela Gram Panchayat of Bonai Block

Total Population ST SC Others

1475 888 65 522

Village Dariekela, Kendrikela Gram Panchayat of Bonai Block

Total Population ST SC Others

388 245 68 75

Village Pandrisila, Kendrikela Gram Panchayat of Bonai Block

Total Population ST SC Others

888 522 65 301

The total area of ORES ISP AT and S.N .Mohanty factories is 60 acres which includes five

villages by the name of Upperbahal, Dariekela and Pandrisila in Kendrikela gram

panchayat of Bonai Block and village Barhamusa and lhaliabema in Bonai gram

panchayat.of Bonai Block. The geographical location of Bonai Block falls between

28*49" Latitude and 85* Longitude.

84

Table- 2

The Sponge Iron Factory: ORES ISP AT

----Name Name Capacity Year of Villages Block Area of Activities Occassions

of of Establis affected Factory

Factory Units hment

ORES Spong 100 1998 Upperbahal, Bonai 30 6,000 18.03.2007

ISPAT e unit (Tons Pandrisila, acres seedlings - Health

per day) Dariekela, namely Camp

Barhamusa, Gambhari,

lhaliabema Saguan, Sal 4.03.2007-

National

Safety day

. . th Source. FIeld Survey Conducted on 9 June, 2007

The ORES ISPA T is located in village Barhamusa of Bonai Block. The capacity of the

factory is 100 TPD (Tons per day). The other facilities available in the factory are an IF

(Induction Fumance), an EAF (Electric Arc Fumance), an RM (Rolling Mill) and an

MBF (Mini Blast Fumance). The total area of the factory is 30 acres. The licensed

manpower of the factory is 100 and that of the casual labourers is 86.

Table-3

Manpower Utilization in ORES I~P A T

Employees 'A.' 'B' 'C' 'D' Total SHIFT SHIFT SHIFT SHIFT 6Am-2Pm 2Pm-l0Pm 10Pm-6Am 8Am-5Pm

Management Officer-6 Staff Staff-4 Operators 14 13 12 3 42 Casual labour 1 1 25 20 30 86 Contractors 0 0 0 0 3

. . Ih Source. FIeld Survey Conducted on 9 June, 2007

85

I

I I I I

Lauhnipara Block:

The Block started functioning with effect from 1.10.1956 as East Block covering the area

of Lauhnipara and Koira Block. Subsequently the Koira Block was bifurcated as a

separate Block with effect from 1960. The Lauhnipara Block is covered under Integrated

Tribal Development Agency (ITDA) Bonai since 1.4.1974. The total population of the

Block (as per 2001 census) is 74,989 out of which the scheduled caste constitutes 4666

(6.22%), scheduled tribe constitutes 49947 (66.60%) and the others constitute 20376

(28.28%). The total number of Gram Panchayats in the Block are 17. I have taken up one

gram panchayat namely Rajamunda gram panchayat for my study. The four major sponge

iron factories dot the region, namely Bhaskar Ferro Alloys, Manik, Bikram and

B.R.Sponge. I have taken up two Villages in the respective gram panchayat. by the name

of Bad Tumkela and San Tumkela. The total area of Bhaskar Steel and Ferro Alloys,

B.R.Sponge, Bikram and Manik factories is 142 acres which includes 2 villages by the

name of Bad Tumkela and San Turnkela in Rajamunda gram panchayat of Lauhnipara

Block. The geographical area of Lauhnipara Block is 77468 sq.kms.

Table-4

The Sponge Iron Factory: Bhaskar Ferro Alloys Name Name Capacity Establishment Villages Block Area Activities Occasions of of affected of Factory Units facto!), Bhaskar Sponge 350 1998 Tumkela Lauhnipara 42 Plantation 18.02.2007 -Steel unit TPD acres 5,000 AIDS and (Tons seedlings Awareness Ferro per day) from govt 4.03.2007 Alloys forest National

dept Safety Day Power l2MW plant -Steel 1 Lakh Melting TPA Shop (Tons (S.M.P) per

Annum) lh Source. FIeld Survey Conducted on 12 June, 2007

86

The Bhaskar Ferro Alloys is situated in village Tumkela of Lauhnipara Block. The

capacity of the factory is 300/350 TPD (Tons per day). The other facilities available in

the factory are an IF (Induction Furnance), WHRB (Waste Heat Recovery Boiler). It

utilizes waste heat from the klin to generate steam and thus electric power and an FBC

(Fluidized Bed Boiler). Coal in combination with char is burnt to generate steam and thus

electric power. The three main units of the factory are the sponge unit for processing

having a capacity of 350 tons per day, the power plant generating 12 MW power and the

Steel melting shop. The per annum production of the factory is 1 lakh. The area of the

factory is 42 acres. Being a large scale unit it has created avenues for large scale

employment. The licensed manpower of the factory is 750. Apart from it the factory

employs casual labourers. The strength of the casual labourers in the factory is 201.

Table: 5

The Villages Taken up for study in Lauhnipara Block

Sl.No Gram Panchayat Villages

1 Rajamunda Bad Tumkela -

2 Rajamunda San Tumkela

Village Tumkela, Rajamunda G.P of Lauhnipara Block

._---- "

Total Population Scheduled Tribe Ssheduled Caste Others (%)

(%) (%)

1000 550 (55%) 250 (25%) 200 (20%)

Source: Block Office, Lauhnipara

87

In both the Blocks the factories have taken upon private land which was basically un­

cultivated and non-irrigated. In Lauhnipara Block out of a total geographical area of

77468 hectares the high land comprises of 42916 hectares which is non-paddy and

fallow land. The total private land under occupation by four major factories in

Lauhnipara Block are as follows:

Table: 6

The Private Land Under Occupation in Lauhnipara Block

Sl.No Name of Factories Land under occupation by

Factories

1 Bhaskar Ferro Alloys 18.99 decimel tl

2 Manik 14.23 decimel

3 Bikram 46.48 decimel

4 RR.Sponge 20.30 decimel

Source: Block Office, Lauhnipara

The total land in two villages in Rajamunda gram panchayat. of Lauhnipara Block is

520.21 decimel out of which the factories are occupying 100.00 decimel. Similarly the

total land in five villages in Bonai Block is 420.21 decimel and the factories are

occupying 220.98 decimel.

6 Note 100 decimel is equal to 1 acre

88

Table-7

Tables Related to Factories and Villages:

Name of village Area of the No of families Lana acquired Purpose for

village (in affected partly/fully which

acres) acquired

Barhamusa 250 out of 40hhs partly Factories

which 200 acres

acquired for

factories

Upperbahal 250 out of 60hhs partly Factories

which 200 acres

acquired for

factories

Dari ekel a 200 out of 30hhs partly Factories

which 150 acres

acquired for

factories . --

Pandrisila 20hhs partly Factories

Tumke1a 300 out of 60hhs partly Factories

which 200 acres

acquired for

factories

Source: Block Office, Bonai & Lauhnipara

89

Table- 8

The Composition of Various Villages in Bonai and Lauhnipara Blocks

Villages Distance from factory Total population

Barhamusa 300mt 724

Upperbahal 200mt 1475

Dariekela 500mt 388

Pandrisila 300mt 888

Tumkela 300mt 1000

Source: Block Office, Bonai & Lauhnipara

Application of Techniques:

In order to attack the problems in a systematic way, I needed adequate and authentic data.

For this I had mainly to depend upon the field researches. So apart from collecting facts

about the factories from the official records, newspapers and official bulletins etc, I

mainly depended upon the field investigations by applying interview schedules, by

interviewing industrial workers, villagers, contractors and officers and by observing the

ways of the people etc.

In addition to the application of interview schedule, other social anthropological

techniques like participant and non-participant observations, individual and group

interviews, case histories have been applied to collect authentic data on the various

aspects of the social and economic life of the industrial society_

Interview Schedule has been applied in all the sectors- the industrial, the fringe and the

marginal industrial complex. In the industrial sector the interview schedule has been

applied within the industries to know about the industrial progress and also the utilization

of manpower in the industries. This interview schedule was not applied to the workers

but to the officials only to know about the actual facts about industrialization and

90

manpower utilization. As far as the fringe and the marginal industrial complex are

concerned, the interview schedule was applied to collect basic ethnographic information

about the villages, to assess the nature of impact and to know the attitude of the village

people towards industrialisation. Altogether six villages of the fringe industrial core and

the marginal industrial core have been selected. The house holds7 have been selected on

the basis of the size of the landholdings. The various parameters used are:

•

1. Landless

2. Within 1-2.5 acres (Marginal Farmers)

3. 2.5-5.0 acres (Small Farmers)

4. Above 5 acres (Large Farmers)

The maximum affected are in the category of small farmers owning 2.5- 5 acres of

land.

Interview Schedule conducted on Villagers:

Table-9

The Table Showing the Average Expenditure of the Sampled Families

on Different Items

r- Items Monthly average percentage of the income I

I

1 2

Food 50%

Clothing 10%

Education 15%

T ransportati on 5% - ---

Entertainment 5%

Newspaper 5%

Medical 10% --- . th Source. FJeld Survey Conducted on 18 June, 2007

1 A household is defined as one group of family members and other related persons living and eating together in a kitchen_

91

The families of villages Tumkela, Dariekela, Upperbahal, Barhamusa, residing in the

factory area on the whole have a surplus budget. A sample survey of expenditure of the

families shows that an average expenditure on food is 50%. This includes the cost on fuel

and electricity. Generally, they purchase the consumable goods from the nearest market

where the prices are high. Out of 50 sampled families, 49.7% manage to save for various

purposes, only a miniscule number are indebted and are balancing their income and

expenditure.

With the rapid industrialization, the economic system changes radically. In the pre­

industrial age the source of income was mainly agriculture. The economic status and

prestige were judged in terms of larger possession of agricultural land. But in the

industrial society, the main source of income is the employment itself. In each

manufacturing factory there exists an accepted wage structure. It is commonly held as a

value judgement that a worker's earnings should reflect the recognized or accepted value

of his job as well as his ability in perfonning in that job. This competitive nature enables

the fittest person to enjoy the high economic prestige. Since there is a competition for

position, they struggle for a better output. When factories are in the vicinity there is a

source of subsidiary income. Out of 50 sampled families, 20 persons are into contractory,

which comes to 40%. The sand quarry provides employment which is a source of

additional income. In this way those who are not engaged in the factory are also able to

earn. The labour groups in the form of Bharat Mazdoor Sangh and Yuvak Sangh operates

in the village Tumkela. It is through these groups people are getting jobs. In the sand

quarry they are employed as labourers. There is transportation of manganese and iron ore

from Joda Block in Keonjhar District to Bonai Block in Sundergarh District and

transportation of sand from Bonai Block in Sundergarh District to Joda Block in

Keonjhar District. The labourers are employed for both uptrip and downtrip. For big

vehicles, the charges comes to Rs 1501- per trip and for small vehicles the charges comes

to Rs 50/- per trip. Now they are earning Rs 70/- to Rs 80/- as industrial wage earners

which was previously Rs 30/- to Rs 40/- as agricultural labourers. So the earnings have

multiplied. Factories are hiring both skilled and unskilled workers. The unskilled works

92

III the factories include coal loading, unloading, stonework, earthwork, boundary

construction, supervision, soiling etc. For soiling of ordinary soil earlier they were paid

Rs 50/- now factories are paying Rs 100/-. For hard soil earlier they were paid Rs 65/­

now factories pay Rs 135/-. For stony earth earlier they were paid Rs 105/- now the

factories are paying Rs 210/-. For hiring technical workers they are approaching district

employment office. At the same time they ure promoting technical institutes. It is with the

coordination of the factories, the Industrial Training Institute has come up in Rajamunda

Gram Panchayat of Lauhnipara Block.

The table below shows the nature of subsidiary occupations creating additional

employment after the establishment of the sponge iron factories in Bonai and Lauhnipara

Blocks.

Table 10

Table Showing the Categories of Subsidiary Occupations

1 2 3

Subsidiary Occupation No ofhhs engaged Percentage

Agriculture 6 12%

Skilled work 20 40%

Unskilled work 7 14%

Clerk 2 4%

Poultry farming 4 8%

Fish cultivation 3 6%

Bookshop 3 6% -- -- - --- - ----_. --- --

Carpenter 5 10%

Total 50 100%

. . th Source. Fjeld Survey Conducted on 18 June, 2007

93

All the 50 hhs surveyed are engaged in subsidiary occupations. Out of these 40% are

engaged in skil1ed work, 14% in unskilled work i.e., as labourers, 4% in clerical job, 8%

in poultry farming, 6% are fish cultivators, 6% own bookstal1 and 6% are doing

carpentary work. Next to skilled work most of the hhs are engaged in agricultural

operations which includes sowing and harvesting in the rice fields during agricultural

time. The sponge iron factories are benefiting the people by providing employment and

encouraging them to produce agricultural products for urban market.

Peripheral Development in Bonai and Lauhnipara Blocks:

As per the Industrial Factories Act of 1948 and Orissa Factories Rules 1950, there is to be

constituted a Peripheral Development Committee in each sponge iron factory at the

district and block level. As per the policy, 40% of the funds for peripheral development

goes to the District peripheral committee whose chairman is the Collector, and rest 60%

goes to the Block peripheral committee whose member includes the BDO (Block

Development Officer), the Sarpanch of the respective Gram Panchayats, DFO (Divisional

Forest Officer) and the factory managers. 3 The BDO is the chairman at the Block level.

As part of the administration of the project, the licensee or lessee should incur the

expenditure for:

a) Reforestation and maintenance of ecology in the scheduled areas;

b) Maintenance of roads and communication facilities in the scheduled areas where

operation of the industry has the impact;

c) Supply of potable water to the tribals;

and providing vocational training to the tribals to enable them to be qualified, competent

and confident in pursuit of employment;

e) Providing employment to the tribals according to their qualification in their

establishment/factory;

8 Data collected from the Inspector of r actories &Boilers, Orissa, Bhubaneswaf.

94

f) Establishment of hospitals and camps for providing free medical aid and treatment to

the tribals in the Scheduled Areas;

g) Maintenance of sanitation;

h) Construction of house for tribals in scheduled areas as endousers.

As per the Abstract of (Supreme Court judgement - Samata V s The State of AP and

others, 2000)9 applicable for scheduled areas, the expenditure for the above development

activities should be part of the annual budget of the industry establishment or business

avocation/venture (Para-1l2).JO On this behalf, at least 20 percent of the net profits

should be set apart as permanent fund as a part of industriallbusiness activity for

establishment and maintenance of water resources, schools, hospitals, sanitation and

transportation facilities by laying roads etc.This 20 percent allocation would not include

the expenditure for reforestation and maintenance of ecology. The above obligations and

duties should be undertaken and discharged by each and every

personlindustry/licensee/lessee concerned so that the constitutional objectives of social,

economic and human resource empowerment of the tribals could be achieved and peace

and good governance is achieved in scheduled areas. (Para-113).

On this behalf a total of four lakhs has been sanctioned towards the peripheral

development of Lauhnipara Block and one lakh fifty thousand towards the peripheral

development of Bonai Block.)) At least 20% of the net profits have been set apart as

permanent fund as a part of industrial! business activity for establishment and

maintenance of water resources, schools, hospitals, sanitation and transport facilities by

9 The Supreme Court judgement- Samata V s The State of AP 1997 prevents transfer of tribal land to intlustries and mines. The Supreme Court's Samata Judgement enjoins upon all states to pass laws similar to that of Andhra Pradesh to protect tribal interest in land. It upholds the Forest Protection Act of 1980, which prohibits mining in reserved areas. It also recognizes the Constitution (73'd) Amendment and the Panchayats Extension to Scheduled Areas Act (PESA), under which gram sabhas are competent to preserve and safeguard community resources, and reiterates the right of self-governance of Adivasis.

10 The expenditure for the above projects should be part of his Iits annual budget of tbe illdustry establishment or business avocation/venture. (Para-I 12) of Supreme Court ludgement- Samata Vs The State of AP and others 2000.

II Data collected from the Office of the Deputy Director of Factories &Boilers, Rourkela Division, Rourkela, Orissa.

95

laying roads etc. This 20% allocation does not include the expenditure for reforestation

and maintenance of ecology. According to the factory owners, the necessary sanction for

exemption of the said amount from income tax liability under Section 35 CC of the

Income Tax Act or similar legal provisions has been obtained and the government has

ensured grant of exemption, looking at the activities undertaken by the factories, carried

out systematically and continuously.

Under the periphery development various activities have been undertaken around the

factories up to a radius of 16 kms. Programmes have been undertaken in close co­

ordination with the state government, district administration as well as the local

panchayats, social organizations and people's representatives of the area. The factories

have made special efforts to initiate new projects in the area of road connectivity,

construction ofbridge/culverts, access to improved water sources etc.

The viIlage Upperbahal of Kendrikela gram panchayat, Bonai block, consists of

scheduled caste-65, scheduled tribes-888 and others-522. The scheduled tribes are in

majority. Several tribal development works have been undertaken by ORES ISP AT and

S.N.Mohanty. For a total population of 1475, 8 tube wells have been provided. During

the year 1999-2000, five sprinkler sets along with D.P set have been supplied to Pani

Panchayats covering Kendrikela gram panchayat and Bonai gram panchayat of Bonai

block by ORES ISPA T. Besides Self Help Groups (SHGs) have been assisted for income

generation activities. They have been imparted poultry training and supplied with chicks

as a demonstration programme. Sensitization training, mud brick training and skill up­

gradation training have been organized by ORES ISP AT in Kendrikela gram panchayat

of Bonai block. ORES ISPAT and S.N.Mohanty have trained five SHGs with twenty­

seven number of beneficiaries. Assistance has been provided to Sevashrams (Residential

Schools) in which scheduled tribes students are enrolled free of cost. Bhaskar Ferro

Alloys have provided assistance to Badhabuin Residential School and Dallsara

Residential School in Rajamunda gram panchayat of Lauhnipara Block.

96

Table: 11

Afforestation Programme

Villges Land allotted for No of plants % of survival

plantation (in survived

acres)

Barhamusa 1000 seedlings 500 seedlings 50%

Pandrisila 1000 seedlings 500 seedlings 50%

Upperbahal 3000 seedlings 1500 seedlings 50%

Tumkela 5000 Seedlings 3000 Seedlings 60%

Source: Block Office, Bonai &Lauhnipara

In village Pandrisila in Kendrikela gram panchayat of Bonai block, ORES ISP AT has

planted Equalyptus, and Akasia trees in 25 decimel land. The land is owned by a

scheduled tribe Phakir Kissan. The plantation has helped the entire village in controlling

pollution. Besides, the barks of the trees are useful for cooking purpose. ORES ISP AT in

Bonai block has allotted Rs 30,000 for forest consolidation and regeneration in 30

hectares in village Pandrisila and Upperbahal in Kendrikela gram panchayt of Bonai

block. By taking up other activities like compensatory afforestation, economic plantation

and assistance to Joint Forest Management (JFM) the factories are assisting in the process

of forest conservation. In the entire Lauhnipara block 50 hectares of plantation has been

taken up so far. The plantation of local species and seed regeneration has further

preserved the ecological integrity in the region. The survival rate of the trees varies from

85% to 100%. The afforestation efforts have been programmed in a systematic way.

Hardy species of Acasia, Karanja, Equalyptus have been painstakingly planted and

nurtured to ensure a near complete survival. The medicinal trees such as Neem, Amla and

Tamarind in tum provide opportunities for employment of the tribals. Even efforts have

been made to nurture local species in the nursery. The nursery has specific focus on seed

collection and treatment for augmenting gennination in and around natural tree cover in

the surrounding areas.

97

~ -.-

Overall Development in Lauhnipara Block:

Table: 12

Development Works Undertaken in Lauhnipara Block

Sl.No Name of the Name of the work Category Estimated Cost village (Rs in lakhs)

1 Tumkela Completion of the Boundary 50,000 boundary wall of wall UP school

1--Improvement of Road 50,000 2 Tumkela road from lharasahi to Brahmani river

3 Tumkela Improvement of Tank 25,000 Tumkela tank

4 Tumkela Improvement of Road 50,000 road from tumkela, Majhansahi to Kamarsahi

5 Rajamunda Improvement of Pond 25,000 Rajamunda Kata Bandha

6 Rajamunda Construction of the Bus stand 45,000 bus waiting hall at Rajamunda

17 Rajamunda Construction of Boundary 35,000 boundary wall of wall I

t market complex 18------ Rajamunda Construction of road Road 25,000

I from Pandasahi to i Kisansahi via ;

I Goudasahi, Telisahi

19 Lauhnipara Construction of Boundary 35,000

! boundary wall at wall i I Lauhnipara High i I Schoo1 l·~ --

i 10 !

Lauhnipara Construction of Tank 25,000 ! Tank at Lahangapad I -III Lauhnipara Improvement of Road 35,000 I road from I Lauhnipara , , I (patibandh to I I I sahajbahal) ,

l-Total 400000 . th . Source. FIeld Survey Conducted on 19 Junc,2007

98

Overall Development in Bonai Block:

In the Bonai block of Sundergarh district, in the vanous stages of its progress,

Industrialisation has expanded communication, health and educational facilities and

created new avenues for income generation in the region. Before the establishment of

the factories, there were no vehicular roads and people had to walk miles to the nearest ,

railway station. Now the villages are connected with metalled roads, with an improved

transport system. Earlier, there was only one allopathic dispensary for the people of the

entire region. In the 1990s the block came up with one sub-divisional hospital, one

Public Health Centre (PH C), one Additional Public Health (Additional PHC), two

homeopathic dispensaries, three ayurvedic dispensaries, two vetinary dispensaries with

a number of auxiliary nurse-midwives (ANMs) in the villages. Apart from it in

educational front also the block made progress. In the 1990s the block came up with

four private colleges and four government high schools. The Tribal literacy rose from

43.53 % in 1991 to 62.73% in 2001. In the place of an agriculture- based livelihood, the

block now provides 55.01% employment in trade and commerce, 22.74% in transport

and communication and 23.20% in other services.

The socio-geographical setting of the respective villages in both the blocks, after the

establishment of sponge iron factories, reflects the positive impact of the factories.

Bonai block in Sundergarh district is endowed with rich natural resources. The Bhaskar

Ferro Alloys is 20 kms from Lauhnipara block and ORES ISPA Tis 15 kms from Bonai

block. The heavy concentration of factories in these regions (Bonai Block and

Lauhnipara Block) has brought about far reaching changes in the socio-economic

structure of the people in these regions. Emergence of a few islands of modernity has

articulated the life of the people in these regions.

99

Table: 13

The Occupational Distribution of the Population in Lauhnipara Block

Total Population 74,989

Agricultural Labourers 10,800

1) Marginal Fanners (1-2.5 acres) 6,490

2) Small Fanners (2.5- 5.0 acres)

4,310

Industrial Wage earners 64,189

Source: Revenue Inspector, Lauhnipara Block

Table: 14

The Occupational Distribution of the Population in Bonai Block

Total Population

Agricultural Labourers

3) Marginal Fanners (1-2.5 acres)

4) Small Fanners (2.5- 5.0 acres)

I Industrial Wage earners

Source: Revenue Inspector, Bonai Block

62,414

9,600

6,400

3,200

1 52,814

In Bonai block and Lauhnipara block, the number of industrial wage-earners due to the

incoming of sponge iron factories in the area increased by 50 to 60 % respectively.

100

Majority of the people in the respective blocks belonged to the category of agricultural

labourers and poor cultivators who joined the ranks of industrial wage-earners. The initial

impact the establishment of sponge iron factories in Lauhnipara and Bonai block has

made on the tribals can be seen in the in the increasing number of industrial wage­

earners, in-migrants, land alienation and gradual monetization of the tribal economy. In

Bonai block and Lauhnipara block, the number of industrial wage-earners has increased

by about 70 %.12. Taking into account Sundergarh district as a whole, the percentage of

industrial wage earners has increased as per the Census data 2001.

Table 15

The Percentage of Main Workers in Sundergarh District

Sl.No Main Workers Male Female

1 Cultivators 45.02% 19.52%

2 Agricultural 8.75% 7.96%

Labourers ..,

Industrial Workers 56.28% 26.03% -'

Source: Census Data 2001

The percentage of workers employed in mining and quarry has also increased, with

percentage of male being 9.44% and female 8.02%.They have acquired technical

efficiency and other skills needed for becoming full members of an industrial society.

Majority of them are literate and trained in some technical job. Knowledge of technical

know-how and entry in the administrative wing of the sponge iron factories has elevated

their social position. As a result, they have now every claim to a respectable place among

the outsiders. There is an inclination towards modem life with a progressively developed

sense of money economy. The monetization of the tribal economy has created a sense of

12 Land alienation among tribals: Unpublished paper by Sujata Kartikeyan ex-Collector. Sundergarh.

101

competition among them. Those who are more trained and educated aspire to migrate to

other fields which could help them in enhancing their social prestige:

Eighty percent of the villagers interviewed feel that the factories have opened new areas

of employment for them. It corroborates the observation of the village leaders. About 85

percent of the village headmen consider the factories as a market with good opportunities

for selling labour both skilled and unskilled and local agricultural and non-agricultural

produce. According to the respondents, the establishment of the factories has helped them

improving their economic condition and elevating the social status of their original

families in the villages. Earnings from work in the factories are much more assured (at

least in the case of permanent workers) as compared to the earnings from agriculture or

any other traditional family occupation. Moreover, the earnings from factories are in cash

unlike the produce of agriculture, of which a major part is still evaluated and paid in kind.

The rise of factories has made the people of the respective villages money conscious

which has encouraged the practice of saving among them. A good number of families

have invested money in cultivation which includes purchase of land, construction of

homesteads and improvement of irrigation. The investment ranges between Rs.I00 to

Rs.4000.

Apart from it Tumkela village in Lauhnipara block now boasts of five hotels, one dhaba,

one guest house, two STD booths and four ration shops. The owners of the above are now

';;arning a good income.

102

Table-16

The Socio-Economic Structure of the People in Bonai and Lauhnipara

Blocks:

Sl.No Family Possessions Number Percent

1 Electric heater 40 80%

2 Sewing machine 20 40%

3 Radio 45 90%

4 Refrigerator 15 30%

5 Telephone 45 90% . Ih Source: FIeld Survey Conducted on 18 June, 2007

The Table shows that out of 50 sampled families, 40 (80%) have electric heaters, 20

(40%) own sewing machines, 45 (90%) have radios, 15 (30%) refrigerator and 45 (90%)

families own telephone. It shows an enhancement in their economic status after the

establishment of the sponge iron factories.

Social Organisation:

The people of an industrial society are the member of a wider group engaged in several

activities The factories have fostered fellowship and a sense of belonging as a whole

through closer association of employees with management by way of participation in

various jOi111. buJies and ihrough these machineries incuicating in them respect for theIr

occupation and tools of production and dealing fairly with recognized representatives of

workers and encouraging in them healthy Trade Union practices. In the different villages

surveyed namely Tumkela (Lauhnipara Block), Upperbahal and Dariekela (Bonai Block),

Trade Union exists in the name of Bunai Sponge Iron Mazdoor Sangh. It is affliated to

Bharatiya Mazdoor Sangh as an independent Trade Union, under Trade Union Act, 1926.

It accepts the aims, objectives, means and constitution of Bharatiya Mazdoor Sangh and

103

rules and regulations framed there under from time to time. It maintains a complete list of

its members in Form' F' prescribed under the Orissa Trade Union Regulations, 1941. The

Limestone and Dolomite Labour Welfare Fund Act 1972 and Factories Creches Rules

1996 have been implemented, according to which the provision of creche and sanitary

facility for women workers, maternity and other benefits have been ensured. Besides,

occupational safety and security in work place are observed. Basic safety instruments like

shoes, glass and helmet are given to workers. Minimum wage, equal wage for male and

female workers, housing, health and education facilities are provided

In Tumkela village the Bonai Mazdoor Sangh and Yuvak Sangh is helping the labourers

to get job. Apart from working in factories they are getting employed in sand quarry.

Their tasks include loading and unloading in dumpers. For big vehicles they are paid Rs

150/- per trip and for small vehicles they are paid Rs 50/- per trip. Even if not employed

in factories they are engaged in subsidiary occupations due to the sand quarry owned by

Bhaskar Ferro Alloys. According to the respondents loading and unloading in dumpers

fetches them good money. The dumpers carry iron ore and manganese from Joda block in

Keonjhar district and unloads it in sponge iron factories in Bonai block of Sundergarh

district. On its return journey it carries sand from the sand quarry to mines in Keonjhar

district. In this way labourers are employed for both uptrip and downtrip.In this way the

Trade Unions are helping all the three parties the owner, the driver and the labourers of

the respective blocks. They are apt about labour laws or industrial relations. The

labourers do not generate the leadership from amongst their own ranks, to represent them

with the management and the authorities. Therefore they have to tum to outside Trade

Union leaders, who ensure proper payment of wages, welfare and safety measures. The ~1 _.l-~. _.1. n .. 1.""''J'" ,. _... _"........ _4~ .-unaI at jYJaLuuur ;)angn ana me Y uvak ~angn operatlllg Jl1 me tour VIllages undertaken

for study namely Tumkela, Jhaliabema, Upperbahal and Barhamusa ensures the

implementation of the Contract Labour (Regulation & Abolition) Act 1970 to stop the

grossest malpractices related to payment of wages and maintenance of minimum working

and safety conditions. They have developed a type of integral Trade Unionism aiming at

social refonn, struggle against a\CohoIism, education, saving etc. The respective Trade

Unions take up the issue and organize demonstrations to achieve the desired goals. One

104

such social organisation "The Occupational Safety and Health Association" have

requested the factory authorities to repair the Electrostatic Precipitator (ESP) in their

factories and complete the construction of bag filters (in coal handling area) to control the

pollution.

The Impact of Outsiders:

The impact of outsiders can be widely felt due to the development of factories. As far as

mechanical and technical works in the factories are concerned, outsiders are hired for

their expertise in the field. The factories are playing an enabling role in helping tribal and

affected people to organize co-operative ventures of their own, for taking care of groups

of marginal workers, slag and rag pickers and to obtain all the benefits. The tribal people

usually find it difficult to manage such co-operative ventures entirely on their own, but

welcome the assistance of a well meaning outsider.

Industrialisation has brought increase in income, political conSCIOusness, education,

influx of outsiders with all their peculiarities. Now the people have various outlooks in

their mind viz; industry and business. The people who got the charm of industrial life

have spread their heads in the industrial work. The nature of society and problems arising

by it has changed to a great extent. The labour leaders and political leaders are the

agencies through which they try to settle their grievances and disputes, as most of the

problems these days have become industrial and individual. The industrialization has

given birth to a new class of wage earners. I have conducted 4 case studies to study the

impact of sponge iron factories on the livelihood of the people in Bonai and Lauhnipara

blocks of Sundergarh district which are as follows:

105

Case Studies

Amongst the seven villages surveyed, village Tumkela in Lauhnipara block, where due to

the impact of four factories (Bhaskar, Vikram, Manik and RR.Sponge) development has

been witnessed on different fronts. Due to the influx of outsiders, metalled road has been

constructed connecting Tumkela to National Highway (N.H.23). The Village Tumkela is

centrally located connected to Rajamunda gram panchayat 4 kms and Bonai block 2 kms

on either side. The principal employment of the people is contractory and fish cultivation.

According to one of the interviewees by the name of Renujhara (an SC), the village

Tumkela has witnessed development on different fronts. Now there are five hotels, one

dhaba, one guest house, two STD booths, four ration shops, five dumpers, three

commanders, three tractors and thirty motorcycles. Now the village can boast of

engineers from Industrial Training Institute (ITI). As far as his personal life is concerned

now he earns Rs 30/- to Rs 40/- monthly which was previously Rs 20/- to Rs 25/-. His

monthly income has increased. In addition to Rs 2000/- he earns a supplementary income

which comes from boat ferrying. Now after the establishment of 4 Factories the labour

strength has increased, they are frequenting the village, as they find boat ferrying

cheaper. Moreover it is a shorter route to reach the village. According to him now 15

days in a month his income is assured-as he is now ferrying 50 persons a day and charges

Rs.IO/- each which comes to Rs. 500/- per day. In 15 days it comes to Rs 7500/-. His

economic status has increased. Now the family owns two cycles, a fish net, two boats,

T.V, phone, two ceiling fans. Apart from it his livestock includes cows, hens and goats.

Now there is demand for houses on rent in the village. The outsiners need hOllse on rent

which includes the labourers, the industrial workers and the managers. According to

Basudev Rana (an SC) previously the house rent which was Rs.500/- now has increased

to Rs. 1500/-.to Rs. 2500/-. Besides, the above sand quarry and fish cultivation is adding

to the overall income of the '.'illagers. Because of the river Brahmani flowing through the

village, fish cultivation is a thriving business in the village Tumkela.

106

According to Basudev Rana an SC, his main source of income is pottery. There are nine

members in his family amongst which five are males and four are females. He was paid

Rs 1 lakhs and 30,000 as compensation by factory owners as per the market rate. The

family possesses T.V, motorcycle, telephone, two hens, two cows and four goats.

According to him his business is thriving after the establishment of the factories. He

presented a contrasting picture. Previously he sold big size pots for Rs 25/- now it is Rs

50/-. Medium size was Rs 20/-, now it is Rs 40/- and small size was Rs IS/-and now it is

Rs 30/-.Now it is convenient to carryon his business, demand for his products has

increased and moreover there is an added advantage of good transportation facility.

Previously transportation was a problem, he had to cover 6 kms walking down, but now

he can hire a vehicle and is charged Rs 5/- per trip. It is cheaper and he is earning double

the amount of what he earned. He takes his products to Lauhnipara block which is 6 kms

from Tumkela village. Now there is ample opportunity for employment in factories. One

of his sons is employed as a supervisor in Bhaskar Ferro Alloys and is earning Rs 70/­

per day, which comes to Rs 2100/- per month. It's an additional source of income. He

now owns a pucca house and has given a portion of it on rent and is getting Rs 2500/- a

month. Besides construction of mettalled road from Lauhnipara to Kalipasa is going on.

The factory owners have started it as a part of peripheral development. Both male and

females of the village Tumkela are employed. male are paid Rs 60/- per day and females

are paid Rs 50/- per day.

According to Brindavan J it and Purnachandra Sahoo, both residents of Tumkela village,

the factories have taken up plantation in the village. The different species which have

been planted are 1500 teak trees of 15 years longevity, 3,000 teak trees of 12 years 1 .~ ....l C AAA 1 ., ,"",,1 .""1 _ • .. 'I .. • .. .. 11..· ;ongeVhY aiiu J,VVV KaJU lrees. VHler mIscellaneous lI1cJUaes snisnu ana gambnan.

R.R.Sponge has planted krushnachuda trees in one and a half acres ofland.

Bidyadhar Kisan a scheduled tribe in village Pandrisila of Kendrikela gram panchayat of

Bonai block owns a ration shop. He is a whole sale dealer in rice and kerosene.

According to him earlier it was difficult to earn Rs 200/- per day, now it has increased to

Rs 500/-. Because of the coming of the factories in Bonai block, hotels and dhabas are

107

coming up. Within a period of 1 year twenty dhabas and ten hotels have come up in the

area, because of which consumption of rice and kerosene has gone up. Now rice is being

sold for Rs 12/- per kg which was earlier Rs 8/- per kg. Likewise kerosene which was

sold for Rs 5/- per litre is now Rs 15/- per litre. According to him his business turnover

has increased at the same time labour cost has increased, now they are earning more,

. employment is more. Earlier they were paid Rs 30/- to Rs 35/- as unskilled labourers,

now it has increased to Rs 50/- to Rs 55/-, employed in factories as mechanical helper,

trainer and stockyard maintenance. Now as the labourers are earning more their

consumption has gone up, due to the improvement in their economic status. According to

him the labourers of ten villages are dependent on three ration shops and his shop is one

among them. Again the dhabas and the hotels are dependent on the ration shops to meet

the food demands of the labourers and the factory managers. Thus the incoming of the

factories has had an impact on the livelihood of the . ration dealer, in terms of

enhancement of his economic status.

Overall Development of the Village Tumkela

The sponge iron factories have accorded high priority to those programmes which have

strengthened the tribal economy. Taking into account the overall resource availability in

the region the factories have taken up development of available resource potential,

restoration of ecological balance adding to the long term viability of the regional

economic base and utilisation of available manpower. Since the area is predominantly

agricultural, the bulk of the activities taken up are in the agriculture and allied sectors like

horticulture, plantations and forestry. As the potential for these activities is high, each of

them has created a sizeable demand for reguiar iabour. At the same time the minimal ,

infrastructure needed for the development of the programme in agriculture and allied

activities has been taken up which includes construction of roads, godowns and other

facilities. A metalled road connecting village Tumkela to National Highway (N.H. 23)

has been constructed and at the initiative of the factories water spraying is done regularly

to control dust pollution. For fonnulating and executing the various plans the factories

108

have developed linkages with various Self Help Groups (SHGs) and Non-Governmental

Organisations (NGOs) working in the area.

Networking with NGOs (for Benchmark Surveys and Human Resource

Surveys)

Tribal welfare officers and community development workers, men and women specially

trained in counseling, are employed by Bhaskar Steel and Ferro Alloys and ORES

ISP AT. They work within the factories as well as in the neighboring villages, so that the

workers and their families are helped to cope up with the stresses of factories. This kind

of service is shared with the effective Non-Governmental agencies operating in the area.

As a part of their networking with the Non-Governmental Organisations (NGOs) the

prominent being Adarsh and Asha in Bonai block, health camp on AIDS awareness and

National Safety Day are organized. Awareness programmes are organized to help the

tribal workers to cope with considerable stress which manifests itself in drinking,

absenteeism, family problems and children having difficulties in continuing their studies.

Such problems have been met by individual counseling and through awareness building

in the community. The respective Non-Governmental Organisations (NGOs) are aware of

the problems as well as the opportunities that change poses. They are taking up the

responsibility for the factories and coordinating efforts for the promotion of self­

employment and tribal welfare in an integrated approach. These organizations are also

providing employment including pre-employment training to the workers and other

displaced persons, whose land is acquired for the purpose of starting the factories

concerned. A close rapport has been developed by the social change agents of the Non­

Governmental Organisations (NGOs) with the tribal and local people of the 3 villages

namely Upperbahal, Dariekela and Barhamusa of Bonai block, which has been affected

by the establishment of the factories, so as to gain the latter's confidence. According to

the managers of the factories (Bhaskar F eITO Alloys and ORES ISP AT), networking with

the Non-Governmental Organisations (NGOs) has helped in fostering interaction

between the tribals and non-tribals, so that each group is benefited from the plus point of

109

the other group. The NGOs. have served as an aiternative channel for upward

communication to government and factories, regarding the impact of the latter's policies

and programmes, and how these are viewed by the affected. The Trade Unions by the

name of Bonai Sponge Iron Mazdoor Sangh and the Yuvak Sangh operating in 3

villages namely Upperbahal, Dariekela and Pandrisila in Bonai block, have been

collaborating with the NGOs in educating the people on how to invest compensation

money and also on the importance of saving for the future. These NGOs have come up

with training facilities in and near the factories, which is helping the candidates to find

admission in Industrial Training Institutes (ITIs) and training the affected persons in

trades which do not require formal qualifications such as entrepreneurship for small

shops and services. They are providing the training space in communication skills,

especially on how to go through the selection procedure and face an interview. The

NGOs are playing a vital role in helping the tribal communities to redefine its identity

and its values in the new context of Industrialisation and express these through dance,

song, literature, folklore and other art forms. Through sincere dialogue, counseling efforts

have been undertaken for the affected and obtaining feedback from them as to how

policies for their welfare are implemented.

Employment Generation:

According to the manager of the personnel department, the number of casual workers in

Bhaskar Ferro Alloys are 201 and number of regular workers are 750. Altogether there

are 951 workers amongst which 45% are tribals. Similarly for ORES ISPAT, number of

casual workers are 86 while number of regular workers are 100. So total comes to 186,

out of which 50% are tnbals. Besides hundreds are gettings jobs from local contractors as

shovel men, to sweep out spillage and drain slurry. The technical requirement of the

factories has affected the class and family structure. The machine requires the right man

to operate it. The division of labour has led to the creation of a number of technological

and managerial sections. In the sponge iron factories there exists seven departments in

all. The following table shows the division:

] 10

Table-I7

The Different Departments in Sponge Iron Factories

Sl.No Name of Departments Functions

1 Processing Regulating the temp per

hour

2 Mechanical Greasing, feeding the raw

materials

3 ESP Pollution control unit

4 RMP Raw material production

5 House-Keeping Stock house, to store the

raw materials

6 Laboratory A laboratory is planned for

the sample preparation and

chemical analysis

7 Electrical and The electrical and

Instrumentation instrumentation has been

designed to meet the

continuous operation of the

factories. Since the factories

runs 24 hrs, in 3 shifts, the

necessary power supply,

illumination,

, instrumentation and control

system is regulated by the

electrical and

instrumentation unit. .

Source: Dlstnct Industnes Centre, Sundergarh

1 1 J

Besides in every department there exist four hierarchical posts in the form of production

manager, shift-in-charge, trainer and the helper. In the production stage of sponge iron

various steps are involved which leads to larger absorption of both skilled and unskilled

manpower.

Absorption of Labour Power in Sponge Iron Factories:

The basic raw materials required for the production of sponge iron are iron ore, coal and

limestone. The plant consists of iron and coal crushing plant. The iron ore is crushed to

the required size and fed to the coal bins. The coal will also be sized and screened. The

different size fractions are fed to separate coal bins. The finer size is used for blowing

from the discharge end of the klin, and the coarser sized coal is fed along with the iron

ore, coal and limestone. The sized materials are stored in coal bins, from which the raw

materials are fed to the rotary klin through the volumetric feeders at a predetermined rate.

The iron ore is pre heated and reduced in the rotary klin and passes to the rotary cooler

where it gets cooled. The cooled material then passes to the belt conveyer system to the

production separation system. A junction house is provided to take care of any

eventualities occurring due to the breakdown of the product separation system. The hot

gases will be cooled in the wet scrubber and cleaned before being discharged through the

chimney. Emergency stack is provided for the escape of gases when there is a breakdown

of the waste gas treatment system. Control room has the PLC operation from which the

complete control and operation of the plant is carried out. The product, which consists of

sponge-iron and non-magnetic such as char etc., is screened to different size fractions and

then magnetically separated by means of magnetic separations. Sponge iron is taken to a

storage bin for dispatch. The char, which is non-magnetic and contains carbon, is taken

into a separate bin and can be recycled if found suitable or alternatively sold as fuel for

applications such as in brick making. Thus the entire process from the collection of the

raw materials to the final production of sponge iron increases the requirement of

manpower both in terms of skilled and un-skilled manpower.

112

The non-technicians are employed as helpers. Each individual has created his own social

position by his own labour. This was not the case in the non-industrial society, where a

farmer's son became a farmer, a craftsmen son became a craftsmen and the priest son

became a priest. But in the industrial era this is not the case, a farmer's son may become a

skilled machine operator, a potter's son may become a managerial staff and so forth.

The position of the women has changed considerably. The main changes are in the nature

of their work. Previously they used to work in the agricultural field with their men-folk

and sometimes confined to their houses and take care of their children and used to do all

other domestic works. After the coming of the factories, they are working on an

independent basis. They are also earning more money and financially helping the family.

In Tumkela village of Lauhnipara block 3.9% of the total female population belonged to

the class of earners in the past, but today the figure has touched 14.2%.

Table-I8

Employment Generation in ORES ISPAT Factory

No of casual No of regular Percentage of Skilled workers Unskilled

workers workers Tribals workers

50 70 60% 40 80

Source: District Industries Centre, Sundergarh

Tab1o- 10 • ;"",.&/

Employment Generation in Bhaskar Ferro Alloys Factory

No of casual No of regular No of Tribals Skilled Unskilled

workers workers Workers Workers

100 220 162 120 200

Source: Distnct Industries Centre, Sundergarh

113

When large-scale public sector undertakings are installed, the local people undergo

uprooting and displacement in order to accommodate the project. There are various

economic changes in the area. The problem of socio-economic changes as well as

displacement is inextricably related to broad pangs of the problems of development.

However, in the process a lot of benefits have been generated, the sponge iron factories

being no exception licensed and registered under the different sections of Factories Act of

1948 and Orissa Factories Rules 1950, they have provided for various welfare norms. To

prove their accountability they have earmarked a stipulated amount for the development

of the designated areas on the periphery of the factories. The factories have framed the

welfare norms drawing its strength from Orissa Resettlement and Rehabilitation Policy

2006. They have undertaken a Social Impact Assessment (SIA) which among other

things, takes into account the impact that the factories will have on public and community

properties, assets and infrastructure and it is reviewed by an independent multi­

disciplinary expert group, which includes social science and rehabilitation experts. The

infrastructure facilities and basic amenities have helped to a great extent.

The beneficial effects of sponge iron factories far outweigh the adverse and negative

effects. The social transformation is very fast. The establishment of factories has

brought significant positive impact due to direct and indirect employment opportunities,

upward mobility in occupational pattern, increase in income and consumption level,

development of socio-economic infrastructure, growing consciousness about education,

health and hygiene and commercialization of agriculture and allied sector and thereby

creating employment opportunities for local people. As far as the food consumption

pattern is concerned it is favourable from the nutrition point of view, as the strategy

introducing new crop. The existing crops include: (i) paddy in low-lying areas, (ii)

maize in backward areas. With the introduction of high-yielding varieties of paddy like

Pathara, in place of age old varieties like Chipty and Ambo, the per-acre yield has now

gone up to 15-20 quintals. The entire expense of this experiment has been borne by the

factories. The factories have also encouraged vegetable farming on a large scale. They

have started a social forestry scheme with a view to strengthening the afforestation

I 14

programme on a community basis. The villagers are provided with fertilizers, pesticides

and training free of cost.

Thus the sponge iron factories in Bonai and Lauhnipara blocks have contributed to

gradual urbanization and industrialization of the area with its consequent impact on

society and environment. Though people are affected due to the establishment of

factories, it has not reduced their access to the available infrastructure facilities. Rather,

it has given them access to higher social and economic overheads and to more non-farm

jobs. One of the social objectives of the factories remains to improve the lots of the

affected people. There is an overall improvement of the level of living of affected

people expressed in terms of per capita 'realisable' income (calculated as current

income plus potential income from the assets owned minus liabilities) as well as

expenditure saving patterns.

.i.'_

115