Arcelor-Mittal, Posco to focus on employment, training

The Orissa government today asked two major steel companies, planning to set up plants in the state, to focus on employment and training in their rehabilitation and resettlement (R&R) plans.

Emphasising on the need of improving the employability of the locals in the vicinity of the projects, the government categorically told them that it is in favour of economic rehabilitation of the project displaced families.

While Arcelor-Mittal proposes to set up a 12 million tonne steel plant at Patna tehsil in Keonjhar district at an investment of Rs 40,000 crore, Posco has signed an MoU with the Orissa government to set up a steel plant of equal capacity near Paradip at a cost of about Rs 52,000 crore.

The government advised both the companies to start discussion with the local people to know their requirement.

Besides, the government stressed on holding of Rehabilitation and Peripheral Development Advisory Committee (RPDAC) meeting at the local level so that people and other stakeholders came to know what the company exactly wanted to do in their respective areas.

The government’s response came during a presentation made by the Arcelor-Mittal and Posco India on the R&R plan before the steel and mines department.

“We suggested them (Posco and ArcelorMittal) to make employment and training an integral component of their R&R Plan and they have agreed to adhere to it”, Ashok Dalwai, commissioner-cum-secretary, steel and mines department, Orissa government, told Business Standard.

He said, the companies need to provide good housing facilities, common service centres (CSCs) among others while planning colonies for the displaced families.

Though the R&R policy formulated by the Orissa government provides for employment of one from each displaced family, a lot more can be done for increasing the employment opportunities of the locals. As a measure in that direction, the steel units can start training institutions before the start of the construction so that a large number of youths can get employment in the project. “We have told them that the standard of living of the families to be displaced should be much better than what it is now”, Dalwai added.