12 - Chapter 3 PDF
12 - Chapter 3 PDF
12 - Chapter 3 PDF
HISTORY OF
ROURKELA STEEL PLANT
Rourkela is not only the symbol of modern india’s aspiration to achieve the
technological advancement but also represents a bold experiment in human settlement
where people from all parts of our country have been living in peace and harmony
as members of a large family . Rourkela is a rich mosaic of India’s culture with
its basic theme of unity in diversity.
In 1908 , the first steel plant in India was set up at Sakchi (now Jamshedpur)
by Jamshedji Tata. During the next four decades a few more plants were installed
in different parts of India .But even at the time of India’s independence , the various
steel plants in the country where hardly producing 1.5 million tones of steel.
This was a serious weakness of the economic structure of India. The Government
of India estimated that by the end of Second Five Year Plan the requirements of
steel would be nearly six million tonnes . In view of the strategic importance of
steel for the industrial development of India , the government of India decided
to install a number of plants for the manufacture of steel. Therefore an autonomous
body i.e. the Hindustan Steel Limited was instituted in December 1953 to enhance
steel production in our country . With the passage of time , it was entrusted with
the task of setting up a steel plant at Rourkela, Orissa. The steel plant at Rourkela
was set up with the collaboration of a private German firm “ Krupp Demag” ,
which served as consultants and advisers to Hindustan Steel Limited, on the matters
relating to the lay out of the plant and the choice of the equipments . The steel
plant was also partially financed out of credit made available by Germany at the
initial stage.
The project report for the steel plant at Rourkela was finalised in November
1955 and was accepted by the Government of India in February 1956 . The first
cold earth was moved in October 1956 for the construction of the plant and on
February 3 , 1959 it was commissioned.
The setting up the plant was a landmark in the strides of the nation towards
progress and prosperity . But it also meant displacement of a large number of
persons mostly tribals who inhabited the region before the plant was set up. Many
of the displaced person could ultimately re- establish their homes, many homes
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were disrupted , many individuals found themselves hurled at the bottom of an
abyss. It is this human aspect of the growth of the giant enterprise at Rourkela.
The Rourkela Steel Plant (RSP) a unit of Steel Authority of India Limited,
has the distinction of being the country’s first integrated public sector steel plant
set up during the Second Five Year Plan to lay the foundation of a strong industrial
base and heralds the renaissance of the Indian economy. It was the great vision
and the dream of Pandit Jawaharial Nehru, the first Prime-Minister who considered
the steel industry as the ‘modern temple ‘ for the rapid economic growth and
always in favour of mixed economy, the first ever public sector steel plant was
a reality at Rourkela , Orissa.
The success of RSP comes not only from technological expertise and adaptive
excellence of the people of but also from its locational advantages in the state
of Orissa rich in natural resources like iron ore, dolomite , limestone, coal and
manganese necessary to produce steel . The proximity of major hydel project
of Ilirakud has been of the added advantage to the Rourkela Steel Plant.
The conception of RSP from a calm sleepy village to an active nerve centre
for growth , forms a golden chapter in the history of India’s economic development
. An agreement was signed in December, 1953 between the Government of India
and the West German combine, Krupp-Demag , representing the steel firms of
Fried Krupp, Essen and Demag A Ktiengesel Schaft, Duisburg for the setting up
of an integrated steel plant at Rourkela with an initial capacity of 5,00,000 tonnes
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of steel at an estimated cost of Rs. 90.5 crores. When the final project report was
received in January 1955, it was decided to increase the plant capacity to one
million tonne per annum, as a result a supplementary agreement was signed on
21 st J uly 1955. It came into production when the first blast furnace was inaugurated
by Dr. Rajendra Prasad, the first President of India on 3rd February, 1959.
Thus , RSP joined the select band of steel makers of the world designed to
produce plates, sheets, strips, tin plates etc. and large diameter pipes with a capacity
of one million tonne at the initial stage and further expanded to 1.8 mt. during
1965. RSP came into existence a new generation of steel making facility for
independent India.
RSP's fully mechanised captive mines meet its bulk requirements of iron ores
.lime stone and dolomite.
(i) Iron ore : Captive mines at Barsua. High grade
ore is obtained from Kafta and purchased from MMTC.
(ii) Lime Stone
BF - Grade — Puninapani and Biramilrapur
SMS - Grade Salna
(iii) Dolomite
BF - Grade -- Biramilrapur
SMS - Grade — liirri (Bilaspur)
■iv) Coal : Jharia and Kaigali
There are two captive power plants . CPP -I is designed to produce 128 MW
of power but due to aging of equipments it is producing hardly 25 MW of power
pere day. CPP -II is a 2 x 60 MW Unit. The daily requirement’s around 140 MW.
The rest of the power obtained from Orissa State Electricity Board.
Besides these, there are centralised services like production , planning and
control perspective planning, Energy management, research and control laboratory
, R & D department, Design and Project Engineering, Safety Engineering, Industrial
Engineering , Statistical Quality Control, Electronic Data processing , Training
and Development Centre etc. to integrated the total system functioning.
RSP has provided adequate housing facilities in the township for its 35,000
employees and their families . The plant provides adequate medical care, education,
electrical and water supply facilities to its work force. Ispat General Hospital
(IGH) is one of the largest equipped hospital in the state which cater to the needs
of plant employees as well as outsiders. A large number of ancillary units have
been developed (around 245 SSI units registered till 1991) in and around Rourkela
to provide related items to the plant for continuous production. Moreover, RSP
spends a sizable amount every year in its Peripheral Development Scheme and
tor controlling environmental pollution.
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2:4 (a) Factors responsible for selection Rourkela as the site of the project :
A technical survey made in 1953-54 revealed that the area around Rourkela
could be one of the best site for setting up a steel plant . Good quality of iron
ore deposits are found in abundant quantity within a distance of 80 kilometres
from Rourkela. Limestone and dolomite essential as fluxing materials are available
at a distance of hardly 30 kilometres . Manganese ore is also available in abundance
in the nearby mines. Hirakud Dam situated at a distance of 150 kms. is able to
supply nearly 55 M.W. power.
The water requirement of the plant can be largely met by Brahmani river.
All these considerations led to the selection of Rourkela as the site of project.
To ensure the supply of adequate water during lean period , an earthen dam
was constructed on river Sankha at Mandira. This was ancillary to the steel pro ject.
At the initial stage it was provided that the Hindustan Steel limited at Rourkela
would have a capacity of producing one million tonnes of steel ingots per year
. but in the Third Five Year plan it was decided to raise the capacity to 1.8
million tonnes . For this purpose , provision was made for three new plants , viz,
electrolyting tinning plant, continuous galvanising plant and a plant for steel
sheets . By 1963, the steel plant at Rourkela reached 76% of its target.
By the end of the fourth Five Year plan the capacity of the plant is proposed
to be raised to 2.3 million tonnes . The master plan also provides for the setting
of a number of auxiliary industries at Rourkela. Important among them are the
pine plant, grey-iron foundry and fertilizer plant.
In the master plan, it was envisaged that when the industrialization of Rourkela
would be in full swing the population of the township would be around one lakh,
siteluding the employees of the steel project as well as the auxiliary industries
. the personnel engaged in various servicing institutions, commercial entciprises
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etc. A steel township with 19 sectors (now 21 sectors ) was therefore , planned
. Provision was made for the construction of 14,000 houses. Among the servicing
institutions included in the plan , most important are the educational institutions.
Provisions were made for starling a number of primal)' and secondary schools
, one science college and one engineering college. For building up technical manpower
for the future expansion programme of the steel plant, a full fledged training
institute was also envisaged, problem of health of the inhabitants also received
due attention. Provision were made for a well equipped modern hospital, several
health centres and small dispensaries. Shopping centres and recreation centres
like park, cinema hall etc. were also included in the plan.
As the plan was drawn up, it became obvious that for the location of the
sled plant and ancillary industries , and also the various conveniences and servicing
institutions, vast stretch of land, would have to be acquired.
hi January 1955. the Hindustan Steel Limited , submitted its blue print to
t;ie government of India, indicating the lay out of the township, the steel plant
and other industries. The blue print covered an area of 207.37 square kilometre
(80 square miles) including 10,500 acres for the township.
The plan, however, was drastically changed and finally the government agreed
to transfer 5,181.86 acres of Govt, land to the Hindustan Steel Limited, and also
to acquire 15,305,.92 acres of private land for the purpose of the project.
in 1951 , the Government , took the first step for acquisition of land for the
project and survey authorities began to visit the villages. At that time the local
people had little idea of What was going to happen . Some of the more influential
ganjus’ or village headman like Monidhar Naik of Rourkela, Durjodhan Sandliya
of Guadehi, Joseph Trikey of Bhangamunda, Mangni Chandra Duirehi of Mahuipali
. who were in contact with government officials of the subdivisional and district
head quarters, vaguely knew that a steel plant was going to be installed. But they
were under the impression that a few acres of ‘gora’ (upland) type of land would
be acquired for the project.
By the end of 1952 , the site for the steel plant was finally selected and h
was known to the people that the villages of Guradehi and Bhangamunda would
be acquired . Durjodhan Sandliya, ganju of Guradehi, belonging to Munda tribe,
approved . Vinod Trikey an influential Oraon leader of Bhangamunda resented
that they should jointly put resistance.They held responsible, the missionary of
the Luthern Church for it. In support of this view, they cited as an alible the fact
that the Germans were concerned about the success of the project.
The displaced persons from Guradehi were not only unhappy about the response
that they received from the people of Bhangamunda about their proposal of staging
a joint opposition , but they were unhappy about the attitudes of the people of
Rourkela, Jharbahal, Milmili and Raghunathpali. It is alleged that , the people
of Guradehi were opposing the installation of the plant, as the lands of ‘Ganju’
of Guradehi were going to affected. It is further alleged that the Brahmins of
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Tumkela and Mahulpali did not join the agitation against installation of the plant,
because they did not like to be led to by Durjodhan Sandliya a tribal.
It is reported that only after the government issued notification to all the villages
to the effect that lands under their respective jurisdiction would be acquired , the
Ganjus of five villages viz, Guradehi, Bhangainanda, Jharbhal, Milimili and Mahulpali,
decided to take united move in this matter . Here it is to be noted that, though .
in all these villages, the tribal people were predominant in number , the dominant
tribe was Munda, at Bhangamund and Mahulpali it was Oraon and at Jharbhan and
Milmlili it was Bhumij . It therefore , appears that at the face of adversity, the inter
ethnic prejudices did not impair common action at that stage at least.
Sometimes towards the end of 1952, the ‘ganjus’ of the above villages convened
a public meeting at Mahaniabagan , where about 200 persons participated. The
meeting resolved that the people did not want the steel plant in their area. If ,
however, the Government was bent upon setting up a plant, it should be located
near Bonai, Where existed vast forest tract of forest land. Further it was resolved
that, if the Govt, felt that there was no alternative to the establishment of the
plant, on the site already selected , the displaced cultivators should be given
equal amount of agricultural land as compensation. To place their demands before
the Deputy Commissioner, a committee consisting of Sri Durjodhan Sandilya ,
Vinod Tirkey and Dhanurjaya Mohanty was constituted.
In the beginning of 1953, it was known that the lands under jurisdiction of the
villages Hamipur, Ahirabandh, Tangarpali,Purunapani and Uparambaha! would be
acquired for the steel township. By this time, the people of these villages were
a ware of the lead taken by Durjodhan Sandliya, D. Mohanty etc. ,in other villages
. t he Ganjus and a few leaders of these villages met at Ambagan. In this meeting
they decided to press upon the Government, the fact that the agricultural lands in
the villages under their jurisdiction , were most productive in the region, hence
such lands should not be diverted to other use, the Government should acquire the
‘gora’ lands of Tumkela, Dahiposh, Kantajhar and Raghunalhpali for the purpose
of steel township . They also decided that they should form an united front along
with the ‘ganjus’ of Guradehi, Rourkela, Bhangamunda etc. for pressing their demand.
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Whatever might be their underlying belief, the people started to organise
themselves , in early 1953. An organization called “steel plant site people’s federation”
was formed with D. Mohanty as its president, D. sandliya as Vice-President, J.
Sahu as Secretary and L. M. Panigrahi of Ahirabandh as Treasurer.
At the initial stage, the people did not know that the steel project would
affect them very much. They thought that only some of their uplands would be
acquired by the govt, on payment of compensation , hence they did not have any
objection to the establishment of the plant in their area. In fact many of them
welcomed it , as a potential source of additional income.
(b) When the people came to know that agricultural lands also were being acquired
in some villages, they began to feel uneasy. They were prepared to advent of a
new economy in the region without disturbance to their agriculture, but when
agriculture itself was affected, resistance developed from among them . In this
resistance , leadership was provided by the ‘ganjus’ or traditional village headmen.
(c) It appears that at the initial stage there was some hesitation among the different
groups of people , in deciding what attitude they should take about the project.
As a result, some suspicion grew up among the different villages about one
another and rumours spread that some communities were not falling in line with
others , because of extraneous influences .In course of time , however most of
the villagers over came their initial hesitation and tried to come together to safeguard
(heir interest.
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(d) As organisation in response to the situation began to emerge at the regional
level, slight change in the nature of leadership took place, persons with political
contact at the district level, were able to consolidate their leadership . They, however,
were local people and operated through the ‘ganjus’ or local traditional leaders.
It seems that an alliances of the local traditional elite and the political elite at
the district level, was taking place.
After taking into consideration the value of agriculture lands in Orissa and
the rates of compensation paid to the displaced persons at Hirakud Dam of Orissa
, and at Hatibari and other places of Bihar the Government of Orissa decided to
pay compensation on an average rate of Rs. 500.00 per acre of agricultural land.
Compensation was also to be paid for trees, crops, irrigation tanks, huts etc.
f or huts compensation was to be paid on plinth area basis. For this purpose
. the rates prevalent in the area at the time of notification of section 3(1) of Act.
VII! of 1948 were to be taken into consideration . Depreciation charges were to
be deducted according to the condition of each house .
The rates per square foot (.09 square meters ) of plinth areas as well as for
the walls , roofs, etc. of different types were fixed as follows by Orissa Government.
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Walls of sundried bricks , lhacthed roof,
mud floor, height 4.57 meters i.e. I5feet....... Rs. 2.68
2. Walls of sundried bricks , and mud plastered
on both sides, country tile roof and mud floor,
height 4.57 meters............................. Rs. 2.81
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2:2 (d) Press note related to rehabilitation programmes :
2. First and foremost , with the start of the construction of the factory and
township, a large number of people now in occupation of the 20,000 odd
acres of land immediately required for construction of the factory and township,
will have to give up their hearth and homes and resettle themselves elsewhere
Everyone may not be required to leave at once, but once construction starts
in full swing , it would become increasingly inconvenient for persons to
continue occupying the existing villages. This disruption of normal life would
affect about 2,000 families and their resettlement in the shortest possible
time is therefore an operation of some magnitude. The entire population
will therefore, have immediately to be found , alternative sites for building
new villages and also as much agricultural land as is possible.
3. In order to cope with this problem and to ensure that the evacuation and re
settlement is made as expeditiously as possible and at the same time with
the least hard ship , Government have decided to appoint the present District
Magistrate of Sundergarh as Deputy Commissioner land acquisition and
resettlement in a addition to his own duties to make all necessary arrangements.
This officer will be responsible under the general supervision of the member
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Board of Revenue, Sambalpur for payment of compensation for acquired
land, houses, etc. as also for ensuring that all employable persons among
the persons displaced are given gainful employment in the construction of
the steel factory.
5. A certain amount of new forest land will be leased out for reclamation to
those who prefer to continue agriculture. The leased area will mostly be in
the commanded areas of miner irrigation projects under construction , although
for certain portions, irrigation facilities cannot be guarantee. As the land
will require to be reclaimed , before it can grow crops the displaced persons
who are allotted these lands , will be given some subsides, in additions to
the compensation for their land. It is also proposed that displaced persons
should be given subsides to help them to construct new house in the new
village sites.
It seems that the press note failed to quell the situation; rather, the pressures
mounted up more and more . The steel plant site people’s Federation, formally
demanded that the affected people of Uditnagar and that agricultural land should
be gi ven to them in such areas which were easily approachable. While the government
agreed to provide facilities for the settlement of the desiring persons, near the
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plant sites , they could not accept the proposal of allotting agricultural lands in the
adjoining areas, as such lands would be required for ancillary industries. It was
decided that three colonies would be set up near Rourkela and that lands would be
provided in 15 far flung forest areas for being reclaimed for agricultural purposes.
fhe rates of compensation for agricultural land, crops were re-fixed by the
government as follows
Bahai 900 75
Bern a 600 60
Mai 401 45
Gora 200 30
K udar 227 30
Gharbari 227 —
Barchha 748
By the end of 1956, the govt, had paid compensation amounting to Rs.
9,1 17,279.05 paise to the displaced persons. Out of the above amount Rs. 1,216,581.25
paise were paid as compensation for housing and building and the rest were paid
as compensation for agricultural lands, trees and other effects.
By the passage of time , the state Govt, and recruitment body of steel plant
promised to give employment opportunity to one member from for a displaced
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family. At Jhirpani, at least one member from each Oraon household got employment
in plant. The Rourkela steel plant also started launching many welfare programmes
in the resettled colonies and various peripheral villages around plant. Some of such
programmes help the natives of Rourkela in general and Oraon in particular to elevate
their socio-economic standings to a significant extent. A brief account of the welfare
measures undertaken by the plant has been presented below (SAIL Report, 1984) :
There are in total 121 villages situated within a distant of 8 kms. around the
acquired area of Rourkela steel plant. Out of these , 63 villages have been selected
which are mostly situated within 5 kms. distance for peripheral development,
works. 1 hese villages are mostly inhabited by tribals who form about 90% of the
total population which will be around 1,39,000. These villages have been divided
into 12 zones and a central village in each zone has been chosen to provide all
the facilities so that all the surrounding villages can derive the benefits.
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In furtherance of the objectives , various welfare and developmental works
already been executed in some of the neighbouring villages . Some details of the
works executed so far and work under execution are given.
ki) Donation of Utkal Navajeevan Mandal for construction of a crech centre for
working women at Jalda.
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(a-iv) Conslrnet ion of school Buildings :
One High school at Jalda, one High school with latrine and bath at Deogan
, one High school at Jhirpani, One M.E. school at Luakera, One M.E. school at
Jobghat, one High school at Kalunga,one High school atLungei, one M.E. school
at Brahmanijarang, one U.P. school at Jhirpani, one M.E. school at Balijodi, one
M.E. school at Nuadera and in other placed were established.
One poultry society has been organised in village Jamsera where 300 units
of poultry farm will be given through finance. The society will be given veterinary
care, transportation and marketing of eggs and unit of 100 birds will earn a
minimum profit of Rs. 200/- per month. Around 300 families will be benefited
through this scheme.
(a) The following industry based co-operative societies have been organised
and given suitable grants for the purpose of machines and tools,i) Kuarmunda
carpentry industrial co-operative society.(ii) Padampur pottery industrial co
operative society.(iii) Kansar Mahila industrial co-operative society.
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(b) One society lias been organised for manufacturing of hand -made paper in
village Jhirpani , a resettlement colony of local displaced persons where
Khadi and Village Industries Commission has already given a grant of Rs.
2,32,000 and a loan of Rs. 68,000 . There are 100 members in the society
out which 94 are schedule caste and schedule tribes.
(a) Provision of Rs. 20,000 /- has been made for giving improved seeds and
fertilizers to small and marginal farmers.
(b) Another Rs. 7,000/- has been spent for providing electrical power to lift
point which will irrigate around 100 acres of land.
(c) Two nos. of vegetable grower and marketing co-operative societies have
been organised (with 200 members) and a massive plan for vegetable growing
in the area is being taken up. For marketing of these vegetables , a central
periphery market is being constructed where the Adivasis can market their
products.
(a t Missionaries of charity of Mother Teressa, who are serving the poor, down
trodden, destitute, ailing and other have notes in multifarious ways in and
around Rourkela in bustees and villages, have been given grant of Rs. 1000/
- pet month for purchase of medicines etc for treatment of the poor and
destitute.
(b) It was extended medical facilities at Jalda and Jhirpani re-settlement colonies
with the help of Indian Medical Association,Rourkela branch.
(c) Free medical treatment is given by the doctor of the Ispat General Hospital to
the inhabitants of Jhirpani and Jalda re-settlement colonies and village Jobghat,
Dalakudar, Ramjori and nearby areas (SAIL Report).
Realising the above socio-economic opportunities given by Rourkela steel plant
to the native villages, we have made here an humble attempt to examine the
impact of industrialization upon the socio-cultural life of the Oraons of Rourkela.
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