The Hindu Business Line : Industry township status sought for Jamshedpur

Currently, Jamshedpur has the status of a Notified Area Committee (NAC) and civic services there are provided by Jamshedpur Utilities & Services Company, a Tata Steel subsidiary.

Kolkata , Feb. 5

WHILE the Jharkhand Government appears keen on setting up a municipal corporation in Jamshedpur, industry, businessmen, industry associations, a section of the political leadership, social organisations, and the citizens of the steel city in general aver that it would be appropriate to confer on Jamshedpur the status of an industrial township according to provisions of the 74th Amendment of the Indian Constitution, as has been done in the case of Rourkela.

A majority of the people Business Line spoke to favoured a public-private-partnership (PPP) model for municipal services in Jamshedpur, the first South Asian city to join the select band of six cities in the world for the United Nations Global Compact Cities Pilot Programme.

Currently, Jamshedpur has the status of a Notified Area Committee (NAC) and civic services there are provided by Jamshedpur Utilities & Services Company, a Tata Steel subsidiary.

The land lease renewal agreement - covering a 64 sq km area where civic amenities are provided by the Tatas - states: "Having regard to the high standard hitherto maintained by the lessee in regard to such development, services and amenities, the lessor is of the opinion that, in the public interest, it is necessary that the said development and services should continue to be undertaken and rendered by the lessee as hitherto at its cost and mode of management and realisation of charges for services so rendered in the manner followed so far."

Spearheading the move against the formation of a municipal corporation for the city is Jamshedpur Citizen Forum (JCF), among other 350-odd social and cultural organisations, NGOs, industry houses, etc. Over six lakh suggestions/objections in this regard have been submitted to the State Government.

The move to set up a municipal corporation this time took off with the State Government issuing a gazette notification on December 8, 2005 and inviting representations from members of the public over the next six weeks.

These have since been received and would be considered by the State Government, said Mr R.K. Srivastava, Secretary, Urban Development.

However, Mr Raghubar Das, Jharkhand's Minister of Finance, Commercial Taxes and Urban Development, told Business Line that the formation of a municipal corporation in Jamshedpur would serve two purposes.

First, it would give the citizens of the steel city the right to elect their own civic representatives. And second, its development under a municipal corporation would be faster than under the present NAC dispensation.

Mr A.K. Srivastava, Working President of JCF, Executive Committee Member of FICCI's Eastern Regional Council, and Executive Committee member of several industry associations, said: "After the Jamshedpur land lease renewal agreement was signed, so many MoUs have been signed envisaging huge investment in the State. Tata Steel itself is setting up a greenfield steel plant in nearby Saraikela at an investment of Rs 42,000 crore. An additional Rs 11,000 crore is being invested in the expansion programme of the existing plant. Jamshedpur is an ideal city with world-class civic amenities. Any move to bring civic services under a municipal corporation here would raise doubts in the minds of other investors in the State's steel sector who are also thinking of setting up townships along with their plants."

According to him, Jamshedpur should be conferred with the status of an industrial township. "Let industry provide municipal services on PPP basis and at its own cost. The money saved by the Government can be spent on upgrading infrastructure in the villages."

Mr V.K. Mehta, Past President of CII, Jharkhand and Member of the National Council of CII, said: "The issue is a political one and scheduled areas have been incorporated within the ambit of the proposed municipal corporation. This is legally untenable. While it is true that the boundary of the Tata command area has to be breached if the city has to grow on both sides, to maintain the quality of civic services, an industrial township is the best solution."

An official spokesperson of Tata Steel said: "The Jamshedpur land renewal ensures Tata Steel's right to provide municipal services for the city and industries in the leased area. To continue to provide world-class civic services, Tata Steel would not want to disturb the present arrangement as other arrangements would not be practical and detract from the service levels currently enjoyed. The only tenable solution as provided for under the 74th Amendment of the Constitution of India is in granting Jamshedpur the status of an industrial township, which has earlier been agreed to by the State Government for Bokaro and Jamshedpur."