FDI in India and Its Impact on Land Acquisition & Involuntary Displacement - A Case Study on POSCO Project at Paradeep in Odisha

Abstract

With the liberalization of economy followed with policy of Foreign Direct Investment (FDI) in India attracted many investors across the world to make direct investment in various fields of manufacturing, finance management, service and infrastructure sector. POSCO of South Korea the fifth largest steel plant in world is one of them. POSCO proposed to make an investment of 51000 Crores for 12 MTPA integrated steel plant in India. This paper contains the background of site selection, land issues, land acquisition, forest diversion and involuntary displacements as well as the frustration of people challenging such acquisition of their land; has been narrated in detailed on the basis of first-hand information.This article is intended to show the land acquisition difficulties as well as poor Resettlement and Rehabilitation benefits leading to Public frustration as well as bitterness against such investment. The incompatibility of foreign companies to the Indian culture, Indian Environment and lack of mutual trust builds breach in understanding the policy of the state has been narrated in different chapters/paras. India was ruled by Britain’s East India Company for almost 200 years. During the ruling people of India have faced various exploitation for which even after 60 years of independence there is a general mistrust on foreign companies. It requires lot of stake holders management starting from managing the people in power and people in administration as well as people on site through different media management and trust building source so that people can look the investors something different from East India Company otherwise Land Acquisition will be very difficult and may take more time than usually taken.An attempt has been made to submit all the stages of activities showing the weakness of the company and defects of the land records maintained as well as faulty policies of the Government which has impacted in the time schedule of the project plan in the state of Odisha by POSCO. It’s a purely academic presentation not intended to show any fault of any body. I wish the discussions made in the article will give insight to such land acquisition Issues in India with a scope to improve the situations and resolve the gaps in the processes to make it more people acceptance and investment friendly. I have a strong belief that there is immense and motivating opportunity for FDI in India; only it requires looking to the consequences of Investment differently not only as an Economic venture but also social and Psychological acceptance to such changes in ground and that should match to the Indian condition and people at large.