Controversial plans to build a port and steel plant – part of a memorandum of understanding with the Orissa government affecting over 4000 acres of farm and forest land – have come under further criticism after a public hearing effectively barred many people affected by the giant project from attending.

South Korean steel company POSCO’s plans for mining, processing and exporting – valued at over 520,000 million rupees (US$12bn) and India’s largest foreign investment to date – could displace over 20,000 people in Orissa and lead to environmental problems.

Last month clashes between police and villagers opposed to the port and steel plant – the first part of the project – led to 50 people being injured. Protestors have blockaded villages in an attempt to keep their land.

Although the state is legally bound to hold an environmental impact meeting, the one held on Sunday (April 15) was organised some 25 kilometres away from the planned site, requiring a journey that few poor farmers and villagers could afford.

“If the government has any decency they would declare this hearing null and void,” said ActionAid programme manager Madhumita Ray who was at the hearing.

“The meeting was held too far for many affected people to take part, in direct contravention of environmental impact assessment guidelines.”

As a result, out of the 500-600 people attending, under 20% were from the eight villagers that the project will flatten.

Despite assurances from Orissa state government that just 500 families will be affected and promises of a comprehensive compensation package, many at the meeting were sceptical.

One retired teacher said he had “seen so many companies come and go with false promises about employment and local benefits.”

“These industries do not provide employment to our people and they want to grab our land,” he said.

“The mood was against the POSCO plans. People clearly do not want to see mass displacement from land and livelihoods and have serious concerns over the social, environmental and economic impact,” added Ray. 

While Orissa’s chief minister Minister Naveen Patnaik today assured that the project would be carried out with "a humane face and in a peaceful way," protestors hope that plans can still be blocked.

Scientists have also raised serious concerns. The proposed port near Paradeep in the district of Jagatsinghpur “would play havoc with Gahirmatha marine sanctuary, protected forests and the migratory path of endangered Olive Ridley turtles,” says environmentalist Biswajit Mohanty.

Last month, neighbouring West Bengal state mothballed plans to hand over farmland to a new chemical complex after 14 protestors were killed by police, while earlier in January plans by Tata Steel to open a new plant in Orissa were overshadowed by the deaths of 13 people in Kalinga Nagar.

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