Identifier
Created
Classification
Origin
06CALCUTTA535
2006-11-24 11:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Kolkata
Cable title:  

RESOURCE WEALTHY JHARKHAND FACES INSTABILITY AND RISING

Tags:  PGOV PHUM IN PTER 
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RUEHCI/AMCONSUL CALCUTTA 1578
UNCLAS SECTION 01 OF 03 CALCUTTA 000535

SIPDIS

SENSITIVE
SIPDIS

PACOM FOR POLAD

E.O. 12958: N/A
TAGS: PGOV PHUM IN PTER
SUBJECT: RESOURCE WEALTHY JHARKHAND FACES INSTABILITY AND RISING
MAOIST INFLUENCE AS GOVERNMENT REMAINS WEAK

1: (SBU) Summary: On November 13-14 Poloff visited the capital
of India's youngest state Ranchi, Jharkhand. After a rapid
succession of 5 governments in the last 6 years, newly-installed
Chief Minister Madhu Koda leads a fragile coalition government
that will likely last no more than six months. Jharkhand is
rich in resources but plagued by lack of development and
poverty, particularly among its tribal population. Displacement
of tribals from traditional landholdings for industrialization
and development has spawned controversy and a tribal resistance
movement that has rendered many areas susceptible to Maoist
influence. Eighteen of Jharkhand's 22 districts are already
affected by various levels of Maoist activity. With an unstable
government unable to make decisions, Jharkhand is falling behind
as India pushes for double-digit growth rates. End Summary.


Introduction
--------------


2. (U) Following nearly a century of agitation by tribal
groups demanding a separate state, Jharkhand was carved out of
mineral-rich southern Bihar on November 15, 2000. The state
has a population of 26.9 million and extends over 79,714 square
kilometers. With West Bengal in the East, Orissa to the South,
Chhattisgarh and Uttar Pradesh to the West and Bihar to the
North, this fledgling state has a 27 per cent tribal population
(consisting of 32 tribes) who mostly live in abject poverty
without basic amenities. 54 percent of Jharkhand's population
lives below the poverty line in spite of the state's huge
mineral (coal, iron, copper, bauxite) and forest resources that
account for 38 percent of India's total natural resources. Key
industries in Jharkhand include steel, coal, aluminum, uranium,
iron ore and bauxite, with two major manufacturing centers at
Jamshedpur and Bokaro. At the time of its formation, Jharkhand
had the rare distinction of being an Indian state with a budget
surplus. However, administrative mismanagement and corruption
have lead to a budget deficit.


Political games
--------------


3. (U) With 5 governments in the last 6 years, political
instability has plagued Jharkhand since its inception, and

electoral politics has turned into a mere "numbers game."
Jharkhand has 14 members in the Lok Sabha, and 81 elected
representatives in its state legislature. In 2000, the
Bharatiya Janta Party (BJP) formed Jharkhand's first government
with tribal leader Babulal Marandi as Chief Minister, but he was
replaced mid-term by fellow party member Arjun Munda. More
recently in March 2005, Jharkhand Mukti Morcha (JMM) leader
Shibu Soren took over as CM. He lasted 10 days. Once again,
Munda took over but his government was toppled in September 2006
by the defection of three Independent legislators (reftel).
Madhu Koda, the Independent who replaced Munda as CM currently
governs the state with a fragile coalition that has only 2 more
legislators than the opposition. His government enjoys the
"outside support" of the Congress party, the JMM, and the
regional party Rashtriya Janta Dal (RJD).


4. (SBU) During Poloff's November 13-14 visit to the state
capital, Ranchi, the current coalition was seen as "shaky."
Former Director General of Police R.R. Prasad said that Koda's
focus is to "keep an eye on the 42nd legislator" to ensure he
does not desert the governing coalition and topple the
government. Current Director General of Police J. Mahapatra
noted that the Koda has to consult the RJD or the JMM leadership
before making even minor decisions. BJP Spokesperson R. Pushkar
proclaimed that his party is preparing for new elections in the
next six months.


5. (SBU) Tellingly, RJD State President G. Rana observed that
Babulal Marandi, who broke away from the BJP and now heads his
own unregistered party, the Jharkhand Vikas Morcha (JVM),is
actually the most popular political leader in the state as
proved by his 194,000-vote victory in the recent Lok Sabha
by-election in the Koderma district. Marandi won votes not only
from his usual supporters, the tribals, but from a cross-section
of non-tribal communities like the Yadavs and Muslims. He

CALCUTTA 00000535 002 OF 003


campaigned on an anti-BJP platform, accusing his former party of
corruption and lack of a vision for development in the state.
(Comment: Marandi's overwhelming win could cause further
political destabilization as members from the BJP may desert
their party and join him. Marandi, himself, predicts that
Jharkhand will eventually see the dominance of one national and
one regional party, implying that the Congress and the JVM will
be the survivors of the current multi-party battle. One
political observer told Poloff that the RJD and JVM will likely
form an alliance. Therefore the BJP's position in the state is
likely to deteriorate. End Comment.)


Left extremism
--------------


6. (SBU) Jharkhand is part of the "red corridor" of Maoist
activity stretching from Bihar to Andhra Pradesh. Eighteen of
Jharkhand's 22 districts, primarily the tribal-inhabited forest
areas, are affected by Maoist activity. In some areas the
Maoists run parallel governments in what have become "no-go
zones" for state security and government officials. Home
Secretary J.B. Tubid estimated the total number of Maoist

SIPDIS
workers at about 2,000, with the number of hardcore elements
ranging between 300-500. Others put the number higher at
approximately 3000 members.


7. (SBU) The primary factor underlying the Maoists' presence in
the state is neglect by state administration and a deep-rooted
feeling among tribal groups of alienation from the government.
Police DG Prasad pointed out that prior to Jharkhand's
formation, the government of Bihar deprived southern Bihar (now
Jharkhand) of development funds for decades. Basic amenities
like drinking water and electricity were scarce. The state
suffers from that legacy even now and people in the tribal
districts have a natural dislike and apathy for the government.
Prasad also said that there is no central leadership or
organization of the Maoists in the state. According to him (and
corroborated by Home Secretary Tubid),Maoist leaders are based
in neighboring West Bengal and Orissa, and meet from time to
time. A level of competitive militancy exists among some of
Jharkhand's Maoists who belong to different social groups such
as the Yadav and Ganju clans. Officials have not seen much
evidence that the local Maoists work in coordination with
Maoists in Nepal.


8. (SBU) In Jharkhand the Maoists' main targets are security
personnel who are either not allowed into Maoist territory, or
are "entrapped" into entering and then killed before they can
leave the area. However, some politicians also maintain links
with Maoists who are able to "influence" electoral decisions.
Maoists raise funds by extortion and levies on contractors
operating in their areas. Another source of income is trade in
locally grown ganja or opium. In some pockets, local officials
survive by paying the Maoists protection money and negotiating
with them unofficially for peaceful coexistence.


Tribal displacement
--------------


9. (SBU) During Munda's tenure as Chief Minister, 53 Memoranda
of Understanding were signed with private companies including
steel barons like Mittal, Jindal and Tata. This has given rise
to tribal grievances on the issue of displacement from their
traditional landholdings. Impoverished as they are, the tribals
feel that their only source of identity and livelihood - land -
is threatened by the government's new policies. Tribal
organizations like the Jharkhand Janadhikar Manch are struggling
to safeguard existing rights under the Chhotanagpur Tenancy Act
and the Santhal Parganas Tenancy Act which provide safeguards
against land transfers. According to tribal leaders, the
state's tenancy laws stipulate that tribal land is inalienable,
yet already thousands of them have been dispossessed. Tribal
leader Ratan Tirkey told Poloff that the government intends to
overturn the provisions in these acts to enable greater
industrialization and urbanization. In fact, the Panchayati Raj
(local self-governance) Act which advocates community
participation in governance and development has been ignored -

CALCUTTA 00000535 003 OF 003


Jharkhand has had not Panchayat elections since its formation.


10. (SBU) Another point of contention is over the Land
Acquisition Act (LAA),a colonial era law that gives sweeping
powers to the state in matters of land purchases. The
government officials and industrialists we spoke with believe
that the LAA permits the government to "acquire" land, even
tribal property irrespective of the two tenancy acts, and
irrespective of the Indian Constitution which contains specific
provisions protecting tribal rights. Home Secretary Tubid, a
tribal himself, said that only tribal land is being allotted for
industries. (Comment: The continuing dominance of some colonial
era laws cripples the implementation of legislation that
protects tribal property. Contradictions between different laws
and policies, and their varied interpretation by courts and
politicians, have complicated the situation. Moreover, there is
no suitable resettlement and rehabilitation policy in place. A
conservative estimate puts the total number of displaced people
in Jharkhand between 1951 and 1995 is about 1.5 million.
However, one tribal leader observed that at least 10 million in
the region have been displaced since India's independence. End
Comment.)


11. (SBU) Comment: At the time of the state's formation, a
spirit of optimism prevailed amongst Jharkhand's population.
Today, Jharkhand's government teeters on the brink of collapse,
as political parties jostle for power and political alliances
come and go. In our estimate, the current government is
unlikely to last more than 6 months. Jharkhand will fall
further behind the rest of India until strong leadership can
bring all parties, including tribal groups, to the table or at
least backing a common agenda for the state. With political
upheavals and corruption becoming the order of the day, most
contacts did not appear hopeful for significant progress the
near future. However, Jharkhand's natural resources sustain
business' interest in the state with hopes of tapping the great
wealth beneath the state's surface.
JARDINE