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Globalisation has led to opening up of the mining sector in India to private companies and has seen major investments in this sector. Jharkhand is fast emerging as the destination for the existing companies to expand their operations for new mega companies to set up their plants due to huge reserves of minerals which contribute to 12.5% of all minerals produced in India. The negative impact of the mining activities is severly felt by the indigeneous communities which adversely affect the living conditions of the poor and vulnerable groups. It becomes obligatory for extractive industries to mitigate the negative impacts and create opportunities by increasing positive impact of their operations. MDG framework would provide the necessary opportunities to mitigate the negative impacts.

Improving the quality of life of vulnerable population vis a vis MDGs through Corporate and its multi-stakeholders engagement in Jharkhand, India

In the above context, we engaged in a collaborative project with ICCO to observe a few prominent examples of responsible business behaviour within the MDG framework demonstrated by mining companies in Jharkhand. The objectives of the project are:

To understand the relationship between extractive industry and poverty.
To improve extractive industries commitment to being socially responsible.
To encourage and enable extractive industries to increase the adoption and effectiveness of pro poor business practices and activities with a special focus on the local goal’s Vis, a Vis MDGs in Jharkhand.
To empower tribal grassroots associations and users’ groups including women and other marginalized groups , so that they would become more capable to plan, implement and manage their own development and to negotiate with the relevant industries and government authorities to harness the necessary resources.
To develop partnerships with government and CSOs to sustain and improve their positive impacts on poverty.
To influence policy environment for extractive industries which encourages them to commit improved impacts o n poverty?
To involve local media in promotion of CSR and partnerships.

Present Status :

In first phase a detailed study was conducted to find out the base line data on different HDI vis a vis status of MDG and CSR in Jharkhand . The study was undertaken by Madhyam Foundation with a specific objectives of identifying status, drivers and scope for enhanced poverty impact while looking at the business behaviour of Tata Steel and Usha Martin, two prominent steel industries of the country, having their base in Jharkhand. The study generated responses from different stakeholders such as senior bureaucrats of the State, key officials of Tata Steel/TSRDS and Usha Martin / KGVK and the community from 31 identified villages in and around mining operations.

Based on the study findings, an action plan has been developed for the second phase of engagement to achieve MDGs through CSR activities. The second phase will start from April, 2006 and will cover 34 villages in two districts of Jharkhand namely Hazaribagh (coal mine Tata Steel) and Singhbhum West (Iron ore mines of Tata Steel and Usha Martin)