Nara Chandrababu Naidu (Telugu: నారా చంద్రబాబు నాయుడు) (born April 20, 1950) was the chief

minister of Andhra Pradesh from 1995 to 2004.[1] He is also the founder of Heritage Foods. As of August 2009, he is leader of the opposition in the Andhra Pradesh state assembly, and the president of Telugu Desam Party (TDP).

He was the youngest Minister in the Cabinet in Congress. Naidu took over the post of Chief Minister of Andhra Pradesh from his father-in-law N. T. Rama Rao in a political coup on September 1, 1995.

During his tenure as chief minister there were allegations of favoritism shown to Reliance Industries(Reliance Energy is India’s largest integrated private sector power utility company) in exchange for kick backs

HERITAGE FOODS

http://www.heritagefoods.co.in/founder.html

The Founder Chairman

Heritage Foods ( India ) Limited, India

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic, Progressive and Visionary Leaders of the 21 st Century.

With an objective of "Bringing prosperity into the rural families through co-operative efforts", he along with a few like minded, friends and associates promoted "Heritage Foods" in the year 1992 taking opportunity from the Industrial Policy, 1991 of Government of India and he has been successful in his endeavour. At present, Heritage has market presence in the states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Maharastra. More than three thousand villages and three lakh farmers are being benefited in these states. On the other side, Heritage is serving millions of customers needs, employing more than 3500 employees and generating indirect employment opportunities to more than 10000 people. Beginning with a humble annual turnover of Rs.4.38 crores in 1993-94, the sales turnover has reached close to Rs.350 crores during the financial year 2006-2007.

Sri Chandra Babu Naidu was born on April 20, 1951 in Naravaripally Village , Chittoor District, Andhra Pradesh , India . His late father Sri N. Kharjura Naidu was an agriculturist and his late mother Smt. Ammanamma was a housewife. Mr. Naidu had his school education in Chandragiri and his college education at the Sri Venkateswara Arts College , Tirupati. He did his Masters in Economics from the Sri Venkateswara University , Tirupati. Sri Naidu is married to Ms. Bhuvaneswari D/o Sri N T Rama Rao, Ex-Chief Minister of Andhra Pradesh and famous Star of Telugu Cinema. Mrs. N Bhuvaneswari is presently the Vice Chairman & Managing Director of Heritage Foods ( India ) Limited.

Mr. Naidu held various positions of office in his college and organised a number of social activities. Following the 1977 cyclone, which devastated Diviseema taluk of Krishna district, he actively organised donations and relief material from Chittoor district for the cyclone victims. Mr. Naidu has been evincing keen interest in rural development activities in general and the upliftment of the poor and downtrodden sections of society in particular.

Sri Naidu held various coveted and honourable positions including Chief Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small Industries Development Corporation, and Chairman of Karshaka Parishad.

Sri Naidu has won numerous awards including " Member of the World Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), " Business Person of the Year " (Economic Times), and " IT Indian of the Millennium " ( India Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the year 2000 by the Business Week magazine for being an unflinching proponent of technology and for his drive to transform the State of Andhra Pradesh .

Politicians shining: Netas' assets soarhttp://timesofindia.indiatimes.com/India/Politicians-shining-Netas-assets-soar/articleshow/4367

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NEW DELHI: You may not be able to say this about India, but its politicians are certainly shining. Check out the assets declared by candidates in this year's election so far and compare it to what was declared by them in the last election, and you will find a quantum jump in their wealth. In certain cases, the figure has risen by as much as a mind-numbing 3000%.

The richest candidate so far, going by assets declared, is Lagadapati Rajagopal, the owner of power generation and infrastructure company Lanco, and the Congress candidate from Vijayawada. He has shown assets worth Rs 299 crore. In 2004, he had declared assets worth just

Rs 9.6 crore. In other words, during the five-year UPA rule, his assets went up 30 times or by almost 3000%. And Rajagopal isn't the only politician whose wealth has grown. It's a general trend. There are many more who have bigger assets than the Rs 67 crore declared by D K Adikesavulu, the richest MP in the last election.

Samajwadi Party's Abu Azmi, for instance, on Monday declared his assets are worth Rs 124 crore while filing his nomination from Mumbai North-West.

Then there's Karan Singh Tanwar, BSP's candidate from South Delhi. He hasn't filed his nomination so far, but he had declared his assets while filing his nomination for the recently held Delhi assembly election - it was Rs 150 crore.

A lot of political fat cats come from Andhra Pradesh. Chief minister Y S Rajasekhara Reddy might have assets worth just Rs 1.35 crore, but his son, Y S Jaganmohan Reddy is much richer - he has declared assets worth Rs 77 crore.

Telugu film star Chiranjeevi, who has floated his own party, Praja Rajyam, has declared assets worth Rs 88 crore, and TDP leader N Chandrababu Naidu has declared his wealth at Rs 68 crore. YSR acolyte V Balasoury has shown assets worth Rs 45 crore.

Businessman-turned-politician, civil aviation minister Praful Patel has declared assets worth Rs 74 crore. And the man who pioneered low-cost airlines under Patel's watch, Capt Gopinath, has shown assets worth just a shade less - Rs 73.46 crore.

Sharad Pawar's assets are worth Rs 8 crore but daughter Supriya Sule has declared assets worth Rs 53 crore, just Rs 2 crore less than filmmaker and LJP candidate Prakash Jha, who has shown assets worth Rs 55 crore. If Rajagopal's assets have grown dramatically in the last five years, so have those of lottery king Mani Kumar Subba. In the last election, he had shown assets worth Rs 18 crore. This time he has declared that he owns assets worth Rs 60 crore - a three-fold or a 300% jump. Interestingly, Subba's LIC policies alone are worth Rs 100 crore for which he has paid a premium of Rs 1.17 crore.

Compared to these worthies, the wealth of our former maharajas looks small. Jyotiraditya Scindia's declared assets, for instance, are less than Rs 14 crore.

Interestingly, UPA chief Sonia Gandhi's assets amount to about Rs 1.38 crore.

ASSASINATION ATTEMPT

http://www.hindu.com/thehindu/fline/fl2021/stories/20031024004001800.htm

EXTREMISM

A blast and its shock

S. NAGESH KUMARin Hyderabad

Chief Minister N. Chandrababu Naidu escapes an attempt on his life by the People's War but the incident badly dents the already low credibility of the Andhra Pradesh police set-up.

ANDHRA PRADESH Chief Minister N. Chandrababu Naidu has survived the most concerted attempt yet by the People's War (P.W.) to assassinate him. On October 1, P.W. activists triggered a series of nine powerful Claymore mines, which they are suspected to have planted over a

period of time on the ghat road leading to the Tirumala hills from Tirupati, barely minutes after the Chief Minister's convoy had crossed the Alipiri toll gate downhill at 4-12 p.m.

N. Chandrababu Naidu escorted by a security officer after he was rescued from his mangled car.

The impact of the blast was so intense that Chandrababu Naidu's bulletproof car was hurled into the air and landed on its side. Security personnel extricated the dazed and injured Chief Minister from the mangled car in which he was seated beside the driver. Minister for Information Technology B. Gopalakrishna Reddy, the Telugu Desam Party (TDP) Members of the Legislative Assembly (MLAs) from Tirupati and Puttur, Chadalavada Krishnamurthy and R. Rajasekhara Reddy respectively, all seriously wounded, and the driver were also helped out of the wreckage and rushed to hospitals in Tirupati.

A look at the scene of the attempted assassination left no one in doubt that the Chief Minister had a miraculous escape. Had the bulletproof window of the car given way, the shrapnel from the mines would have caused him far more serious injuries than just a fractured collarbone. Rajasekhara Reddy, who was seated in the rear seat which the Chief Security Officer P. Umapathi was asked to vacate, seems to have borne the brunt of the blast, and is still battling for life.

The Chief Minister, who lost consciousness for a full two minutes after the blast and remained dazed for several hours later, said, "My initial reaction was that the car was involved in an accident and had veered off the road. But, if you look at the scene of the blast, it is difficult to believe that anyone could have survived. I am alive today owing to the good wishes of the people and the benign blessings of Venkateswara (the presiding deity at the Tirumala-Tirupati temple)."

Security personnel trying to heave Chandrababu Naidu's car, which fell on its side after being hurled in the air by the blast.

Several leaders, including President A.P.J. Abdul Kalam, Deputy Prime Minister, L.K. Advani, and Karnataka Chief Minister S. M. Krishna, called on Chandrababu Naidu in Hyderabad soon after he returned from Tirupati.

The explosions have exposed grave lapses in the personal security of Chandrababu Naidu, a leader in the `Z' plus threat category. Apparently the police had not learnt their lessons from an earlier attempt on him in 1998 when P.W. cadres placed Claymore mines in a bullock cart alongside a road on which he was to travel during an Assembly byelection campaign in Karimnagar district. The mines were detected in time but the naxalites triggered them by remote control, injuring the constables present on the spot.

The gaping holes in the security were evident from the failure of the Deep Search Metal Detector (DSMD) to reveal the Claymores although the route had been `sanitised' before the VIP's arrival. Routine precautions, such as using an electronic jammer and using a convoy of identical cars bearing identical registration numbers to confuse would-be assassins were not followed. The Centre had offered Chandrababu Naidu NSG cover but he turned it down presumably because its security code would restrict his access to the people.

The mangled car.

It was no wonder then that heads began to roll after the incident: Chittoor Superintendent of Police Navin Chand was suspended and the District Collector and Anantapur Range Deputy Inspector-General of Police were transferred. Other standard measures followed were the appointment of a Special Investigation Team headed by D.T. Naik, for an in-depth probe into the blast and a Commission of Inquiry headed by former Uttar Pradesh Director-General of Police Prakash Singh to study the existing security systems.

Speculations about the identity of the assassins were immediately cleared when the P.W. issued a statement claiming responsibility for the attack. Secretary of the State Communist Party of India (Marxist-Leninist) Committee of the People's War, Ramakrishna, and others justified the attack saying, "Chandrababu Naidu and the State police are enemies of the people. They deserve to be eliminated."

The P.W.'s admission was not surprising since it had issued death warrants against Chandrababu Naidu, West Bengal Chief Minister Buddhadeb Bhattacharjee, and former Jharkhand Chief Minister Babulal Marandi.

APART from creating fear among political leaders about their personal safety, the attack also served to forge a new kind of solidarity among them. Chandrababu Naidu's arch-rival and Congress(I) Legislature Party leader Y.S. Rajasekhara Reddy rushed to Tirupati to call on the Chief Minister soon after the incident. He even staged a dharna in the temple town to protest against the failure of the security apparatus.

AFP

Deputy Prime Minister L.K. Advani with Chandrababu Naidu in Hyderabad two days after the assassination attempt.

Political parties have always been wary of openly criticising the P.W.'s policy of eliminating its so-called enemies, for fear of attracting its wrath. With the P.W. attacking the party's numero uno, the TDP has come out rather strongly saying that the naxalite organisation had no moral right to speak of people's problems after killing innocent people. While the government was not against anyone, it would hit back at forces that attacked innocent people or destroyed public property, the party said.

The attack has thrown up some disturbing questions, beginning with the image of the State police. Rajasekhara Reddy's dharna helped underscore the point that the State bureaucracy had become complacent. This laxity may be in no small measure owing to Chandrababu Naidu's reluctance to wield the stick against some Indian Administrative Service and Indian Police Service officers when the situation demanded.

No action was taken against persons responsible for the security of Panchayati Raj Minister A. Madhav Reddy, who was assassinated by naxalites in a landmine blast in 2000. Madhav Reddy was high on the P.W.'s hitlist for his outspokenness on the issue of naxal violence when he was Home Minister. He was allowed to switch his vehicles in a very casual manner on the night of his murder.

A Claymore mine of the People's War seized by the police during an operation. The 'box' weighing about 5 kg is filled with blasting gelatin. A bigger version of this was used in the

October 1 explosion.

It was on the strong insistence of some Ministers that the Chittoor S.P. has now been suspended. Ironically, security expert S. Subramanyam, a former NSG chief, appointed to inquire into the security aspects, stated that there was no security failure since security was a "mind game not related to weapons". He said the improvised explosive device (IED) used in this case was unsophisticated and could be prepared even in a kitchen. "There are certain things beyond one's control," he said.

But control was one thing that the Chandrababu Naidu government had lost over the bureaucracy and the police. The Chief Minister speaks to District Collectors and S.Ps directly during his weekly videoconferences and takes decisions bypassing Ministers, thus undermining their authority. While he reviews the activity of other departments through performance indicators, the police never seem to come up for scrutiny publicly.

An illustration of the influence wielded by the police bureaucracy in policy making was the abortive talks with the P.W.'s emissaries, Varavara Rao and Gaddar, last year. Some members of the police top brass were accused of scuttling the peace process. In their line of thinking, any attempt to declare a ceasefire in the absence of the P.W.'s willingness to abjure violence would be disastrous. This contentious formulation at the preliminary stage of the talks left no scope for any forward movement.

K. RAMESH BABU

A security officer carries pieces of wire that were disconnected from unexploded Claymore mines in Tirupati.

Moreover, the militarisation of the police has become a cause for concern. A glaring instance was the shooting down of A.P. Civil Liberties Committee (APCLC) leader Ramanathan in September 1985 after naxalites killed an Inspector, Yadigiri Reddy, at the Kazipet railway station. Retributive violence has become commonplace with the police but this "an eye for an eye" policy has never found acceptance among the intelligentsia though expressions in its support are aired in street-talk whenever naxalites attack a popular leader.

The APCLC claims to have catalogued nearly 4,000 deaths at the hands of the police since the naxalite movement began in 1968. Half of these occurred during the past eight years. Figures from other sources show that 5,639 people have died in left-wing extremist violence during the past 35 years. They include 2,504 extremists, 2,616 civilians and 519 security personnel.

Reports frequently appear in the local media about the involvement of police officers in various illegal deals through surrendered naxalites, sullying the department's image. Kattula Sammaiah, a former P.W. activist, died while being smuggled out of India on a fake passport. He was reportedly accompanied by the son of a top police official.

An unexploded mine found in a bush near the blast site.

The attack on Chandrababu Naidu has come at a time when the credibility of the police set-up is at a low in the wake of the multi-crore fake stamp paper scandal in which a TDP MLA, C. Krishna Yadav, was arrested. During the recently concluded Assembly session, Opposition members highlighted how senior police officers sought to shield the prime accused, Abdul Kareem Telgi, and allowed him to escape.

The explosion has served to deflect public attention from the stamp paper scam and provided relief to those TDP leaders who were threatened to be engulfed by it.

For now the landmine explosion has generated a wave of sympathy for the TDP supremo.

Top Naxalite ‘behind Naidu attack’ shothttp://www.indianexpress.com/news/top-naxalite-behind-naidu-attack-shot/465287/

In a jolt to Naxalites in Andhra Pradesh, the Warangal police on Sunday morning shot two top Maoist leaders, including P Sudhakar Reddy alias Shrikanth, who is alleged to have been involved in the 2003 bid on the life of then chief minister N Chandrababu Naidu and the killing of former home minister N Madhav Reddy.

NAXALITE ATTACKS MNC’Shttp://www.satp.org/satporgtp/sair/index.htm#assessment2

Naxalites declare war on MNCs: In a statement sent to media houses on June 23, the Communist Party of India-Maoist (CPI-Maoist) has declared that they would "rise up as a collective fist to drive out MNCs [Multi National Companies]" from the country. The statement also reiterates that their mission is to wipe away the "treacherous rotten regimes" at the Centre and the States. Business Standard, June 24, 2010.

Maoists: Targeting the Economy

Volume 8, No. 51, June 28, 2010

Ajit Kumar Singh Research Fellow, Institute for Conflict Management

The growing influence of the Maoists over the past years has led to a tremendous increase in attacks on economic targets in the worst affected States. Public and private sector industries, particularly in sectors with sprawling infrastructure, such as railways, communications, power and mining, have borne the brunt of these attacks.

According to data released by the Union Ministry of Home Affairs (MHA), Maoist strikes on economic targets have progressively increased from 71 in 2006 to 80 in 2007 and 109 in 2008. The South Asia Terrorism Portal (SATP) database has recorded a partial listing of 92 such attacks in 2009, and 58 in 2010 (till June 27).

Incidents of Naxal (Left Wing Extremist) attacks on Railway property nearly doubled to 58 in 2009 from 30 in 2008, according to Union Railway Minister Mamata Banerjee. 56 such incidents had been reported in 2007. According to partial data compiled by the SATP, there have already been 26 attacks on the Railways in 2010.

MHA sources have put the total number of attacks on mobile towers over four years between 2005 and 2008 at 69. Crucially, however, just eight such incidents were reported in 2005, five in 2006 and six in 2007. 2008, ho

wever, saw a sharp increase in these attacks, with as many as 43 recorded, of which Chhattisgarh and Bihar, each, accounted for 14 such incidents. The number stood at 40 in 2009, and there have already been at least 13 attacks on communication towers in 2010 according to the SATP database. Private mobile operators pegged the loss in an attack on a single mobile tower at about INR 1.2 million, yielding a physical loss of at least INR 146.4 million, as well as significant losses in disruption of services and loss of business opportunities. With Maoist attacks on communication installations increasing, mobile operators have indicated that it would inevitably affect rollout and, in turn, hamper mobile penetration in rural areas – an objective the Maoists eagerly seek, since mobile penetration has contributed directly to better availability of intelligence to the state’s agencies on Maoist movement and activities.

The power sector has also been badly hit by acts of Maoist sabotage. The pace of work at Abhijeet Group’s flagship project, Corporate Power Limited (CPL), which was setting up a power plant at Chandwa in the Latehar District of Jharkhand, slowed down after extremists gunned down four of its security guards in April 2009. Essar Power(MNC that is India based) is another company, whose projects have been affected due to Naxal violence. The company is setting up a 2000 mega watt coal-based power plant at Chandwa. In one of their most damaging operations, an estimated loss of INR 20 billion was reported when the Maoists blew-up three 132 KVA High Tension towers in Narayanpur District in Chhattisgarh on May 31, 2007. Six Districts were plunged into complete darkness for a week, and normal power distribution could only be restored after a fortnight, causing widespread disruption in communication systems, rail traffic and iron ore mines.

It is, however, the mining industry which has suffered most as a result of Maoist violence in the mineral rich belt of the country that they have come to dominate. The Maoists claim that the Government is not compensating those who live in these areas, and is also trying to displace local populations to benefit industrialists engaged in mining. The States which have suffered most are Jharkhand, Chhattisgarh and Orissa, and, within these, the mineral rich Districts of Latehar (Jharkhand) and Bastar (Chhattisgarh), where some of the most unsettling attacks on the mining infrastructure have occurred.

In the Bastar Division, the Maoists threaten iron ore mining in a sprawling forested region that accounts for a fifth of all iron ore deposits in India. The National Mineral Development Corporation (NMDC), the country's largest iron ore producer and exporter in the public sector, produces roughly 80 percent of its 27-million tonnes per annum (mtpa) iron ore output from the Bailadila reserves in Dantewada in this Divsion. The Bailadila mines and infrastructure has been repeatedly targeted by the Maoists over the years. Notably, on March 31, 2008, the transport of iron ore from the NMDC mines at Bailadila in the Dantewada District was severely affected as no trains plied on the Jagdalpur-Kirandul route during the general shut down called by the Maoists. No specific reporting or data available.

Latehar in Jharkhand accounts for huge reserves of bauxite and coal. On August 17, 2009, 10 HINDALCO(one of the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia.)staff were abducted by the Maoists. Though they were subsequently rescued, the incident came as a rude shock to the company, which has a plant in Muri in Latehar.

Earlier, on April 12, 2009, 11 Central Industrial Security Force personnel and four CPI-Maoist cadres were killed in a gunfight following an attack on an armoury and bauxite mine of the public sector National Aluminium Company Ltd. (NALCO) at Panchpatmali near Damanjodi in Koraput District of Orissa. The Maoists also looted explosives and arms. However, SFs later recovered a substantial quantity of explosives and arms looted by the Maoists.

On April 24, 2008, the Communist Party of India – Maoist (CPI-Maoist) cadres set ablaze 47 vehicles of Essar Steel, which has a 3.2 mtpa plant at Korandul in Dantewada. A pamphlet warned Essar Steel and another private company against continuing their operations in the Bastar region.

On June 19, 2009, the Maoists killed Vimal Meshram, in a busy weekly market near Lohandiguda village in Bastar District for his support to the Tata Steel megaproject for a 5 mtpa steel project in Bastar District.

ArcelorMittal's(ArcelorMittal is the world's leading steel company, with operations in more than 60 countries.ArcelorMittal is the leader in all major global steel markets) USD 9 billion steel projects in Jharkhand and Orissa and the South Korean company, POSCO’s(POSCO-India Private Limited is a subsidiary of POSCO, the world’s fourth largest steel producer and one of the most competitive steel companies. POSCO signed a Memorandum of Understanding (MoU) with the Government of Orissa in June 2005)

USD 32 billion steel project at Jagatsinghpur District in Orissa have stalled due to Maoist violence. Another significant project that has been blocked off by Maoist threats and violence is the Jindal Steel Works’ USD 7 billion steel plant at Salboni in West Bengal.

The Maoists have, over the years, also damaged numerous Government and private establishments. The SATP database records at least 126 incidents of damage to Government and private properties, including 73 school buildings between 2005 and 2010.

Road infrastructure projects, including the Pradhan Mantri Gram Sadak Yojana (PMGSY, Prime Minister’s Village Road Construction Scheme) have also come under sustained attack. Reviewing progress, Chhattisgarh Minister for Panchayat (village-level local self-Government institution) and Rural Development, Ram Vichar Netam, on January 6, 2009, had admitted that the State Government was facing difficulties in implementing the PMGSY in the CPI-Maoist affected areas, leading to delay in taking up construction of 441 roads in the State.

Disruption due to Maoist violence is compounded by repeated calls for bandhs (general shut downs) across the worst affected States. At least 112 bandhs were enforced by the Maoists during between 2005 and 2010. Crucially, the numbers of such general strikes have increased from just one in 2005 to 6 in 2006, 11 in 2007, 13 in 2008, and, spiked abruptly, with as many as 58 bandhs in 2009. 2010 has already witnessed 25 bandhs, many of which virtually bring all economic activity to a halt across vast area. Such bandhs have also been the occasion for a range of compounding subversive activities. In Orissa, for instance, the POSCO Pratirodh Sangram Samiti (PPSS) utilized bandhs to seal off the potential sites of a major mineral processing facility and has also abducted corporate officers of steel firms to discourage investment.

The targeting of industrial infrastructure is not incidental, but is an integral component of Maoist strategy. At its first "Unity Congress" in 2004, the CPI-Maoist leadership had detailed its violent vision for its struggle and their stand on various issues, including industrialisation. "The Call of the Unity Congress", declares its opposition to the present economic policies of "globalisation, liberalisation and privatisation being pursued by the ruling classes." The resolution also calls on the "vast oppressed peasant masses to rise as a storm against these policies to sweep away their oppressors and establishes their own people’s political power in every village." The congress also named "huge projects like POSCO, Kalinganagar, bauxite mines in Orissa; Chargaon and Raoghat in Chhattisgarh, bauxite mines and Polavaram project in AP [Andhra Pradesh], iron ore mines and uranium projects in Jharkhand", accusing them of massive displacement of adivasis and their marginalization. Besides, the Maoists also named the Special Economic Zones (SEZs) for identified opposition. These sentiments have often been reiterated since, most recently in a statement sent to select media houses on June 24, 2010, in which the CPI-Maoist declares that it would "rise up as a collective fist to drive out MNCs" from the country.

Meanwhile, an August 3, 2006, report quoting Home Ministry officials said that property worth INR 116.7 million was damaged by the Maoists in the first six months of 2006, more than double

the figure for 2005, at INR 57.1 million. In 2004, property worth INR 64.7 million was destroyed due to Maoist violence. Though current estimates on the total economic loss due to Maoist activities is available, the amounts would have increased alarmingly in view of the dramatic increases in the number of attacks on economic target and the increasing frequency of bandhs enforced by the Maoists. However, providing a partial index of the magnitude of escalation, on April 23, 2010, Union Railway Minister Mamata Banerjee informed the Rajya Sabha (Upper House of Parliament) that the Railways alone lost over INR five billion in 2009 due to disruptions by the Maoists. In an earlier written reply to a Question in the Lok Sabha (Lower House of Parliament), on September 6, 2007, the Railways Ministry had disclosed losses of just INR 50 million in 2006. However, in 2007, during a Maoist sponsored ‘economic blockade’ alone, the Railways incurred a loss of over INR 38.9 million.

Similarly, on June 23, 2010, Coal Minister Sriprakash Jaiswal stated, "If the law and order situation is improved, coal production can rise by at least 25 percent. Unfortunately, the States that have coal, have bad law and order situation..." India produced 531 million tonnes of coal in 2009-10, which fell short of demand by 70 million tonnes.

The Federation of Indian Chamber of Commerce and Industry (FICCI) taskforce report on national security and terrorism released on November 9, 2009, voiced apprehensions that Maoist insurgency-related violence could cripple India as a growing economic power:

Just when India needs to ramp up its industrial machine to lock in growth and when foreign companies are joining the party – Naxalites are clashing with mining and steel companies essential to India's long-term success. There was growing concern over the widening reach of Maoists as they operated in 30% of India, up from 9% in 2002. The terror groups have already begun operating on the edge of industrialised Maharashtra…

Outlining the implications for India's economic growth, the report noted further that such attacks were sending a signal that "India was not in control of its territory and the ‘investment climate' was worsening."

Governments in Naxalite-infected States have been estimating that a projected USD 112 billion in foreign investments over the next decade could reverse and eventually eradicate the Compact Revolutionary Zone (CRZ) or "Red Corridor". If the Maoists have their way, however, the projected billions will simply vanish.

Maoist violence is inflicting a far greater and insidious toll than the unending death-count on which the media and analysts ordinarily focus, targeting the economic sinews of the nation, and sapping international confidence in India’s capacities for growth and ordered governance.

In an effort to undermine the Maoists, the Union Government has launched a media blitz around the catchphrase, "Who is against development?", focusing on the destruction of vital social and economic infrastructure by the rebels. However, unless the state is able to re-establish its dominance of the afflicted areas, it is unlikely that it will recover legitimacy in the eyes of the people through such stratagems.

http://www.satp.org/satporgtp/sair/archives/4_29.htm

In December 2005 the Naxals made similar comments regarding MNC’s

Volume 4, No.29, January 30, 2006

The Red Revolution’s Economy Saji Cherian

Research Associate, Institute for Conflict Management

On December 14, 2005, at a press conference organised at an undisclosed village along the India-Nepal border in Bihar, the Communist Party of India-Maoist (CPI-Maoist) ‘central committee’ spokesperson, Azad, and ‘member’, Praveen, issued a threat that the outfit would “step up activities” against “big companies”, including Multi-National Corporations (MNCs), which, they claimed, were being set up after “forcibly displacing people”. Plans were outlined to target companies in the mineral rich belts of Jharkhand, Orissa, Chhattisgarh, Madhya Pradesh, Andhra Pradesh and Maharashtra, all States that are varyingly affected by Left Wing extremism.

The industries’ reaction to these threats has been negligible, with a few groups, including the Houston-based International Facility Managers’ Association (which helps managers develop strategies to manage human, facility and real estate resources) advising their Hyderabad-based subsidiaries to watch their back. Executives have been cautioned against frequent travel in ‘lawless terrain’, and Bihar has been placed entirely out of bounds.

The proximity and seriousness of the Maoist threat to domestic industries and MNCs can be assessed, in some measure, by mapping of the Maoist ‘economy’ across the country. It is useful to note, however, that, to date, the only direct act of violence against an MNC was recorded at Atmakaru in the Guntur District of Andhra Pradesh on October 21, 2001, when cadres of the erstwhile People’s War Group (PWG) blasted a bottling unit of Coca Cola, causing damages estimated at Rupees 10 million, but no injuries or loss of life. The attack, however, had no apparent local undertones; the PWG cadres left behind a note stating that

  Also ReadNaxalites: The Economy at Risk - Nihar Nayak

the attack was in protest against the ‘imperialistic actions’ of the United States in Afghanistan. While the Maoist threat is factored into their feasibility studies, there has been little real apprehension among MNCs in India.

By contrast, however, domestic industry has been variously affected by Maoist activities. Threats have largely been at the level of extortion and ‘levy’ charges which, in some cases of non-compliance, have translated into attacks. On October 1, 2005, for instance, Maoists burnt six dumpers and injured more than ten employees at the Phakhar bauxite mines of the Birla Group-owned Hindustan Aluminum Company (Hindalco) at the Baghbana plot in the Lohardaga District of Jharkhand. According to police sources, the Maoists were demanding a ‘levy’ for the ore extraction. Another Hindalco unit at Saridih in Chhattisgarh was attacked on May 9, 2005, with Maoists razing several buildings in the complex, using Hindalco’s own bulldozers.

The Maoists have also targeted the state-owned industries like the Oil and Natural Gas Corporation (ONGC). Armed guards are now deployed to provide security to ONGC officials involved in the exploration of coal-bed methane in the North Karnapura coal fields of Jharia and East Bokaro in Jharkhand. In January 2006, the Union Home Ministry instructed law-enforcement agencies to strengthen security for the Eastern Coal Fields Ltd (Sitalpur, West Bengal), Central Coal Fields Ltd. (Kargali, Jharkhand), Singareni Collieries Ltd. (Andhra Pradesh), and Neyveli Lignite Corporation (Chennai), in the wake of intelligence inputs indicating possible Maoist attacks. Intelligence officials add that the targeting of coalfields serves two specific purposes: the looting of explosives used for mining and the extraction of ‘levies’ from officials working on mining projects.

Prime Minister Manmohan Singh drew attention to the scope and impact of Maoist extortion when, in December 2004, he wrote to Kannabiran, one of the mediators in the failed peace talks in Andhra Pradesh, that “Extortion demands, in particular, are causing a great deal of unease and the State Government has been compelled to take steps to allay fears of a virtual collapse of law and order.”

A deeper scrutiny of the spread of Maoist influence demonstrates that it overlaps with areas that are rich in forest and mineral resources. Further, a comparison of the Maoist-affected districts (estimated to be 165 in 14 States in November 2005) and the Forest Survey of India-2003 map indicates that dense forest areas, particularly in the states of Chhattisgarh, Orissa, Jharkhand, Madhya Pradesh and Andhra Pradesh, provide a natural base for the Maoists. One study in 2005 indicated that, “Different Naxal groups now control 19 per cent of India’s forests.”

Not surprisingly, some of the districts worst affected by Maoist violence in different States are those that account for a high percentage of forest cover, mineral wealth and, crucially, a substantial tribal population:

State District Fatalities in 2005*

Forest Cover^

 

Mineral Wealth Tribal population

#

Chhattisgarh Dantewada 93 64.24% Iron ore, Tin ore 78.51%Maharashtra Gadchiroli 16 69.87% Iron ore 38.30%Orissa Sambalpur 8 49.39% Coal, Bauxite,

Limestone 34.49%

Jharkhand Palamau 12 41.13% Iron ore, Dolomite 18.69%

A P Visakhapatnam

14 30.27% Bauxite 14.54%

Madhya Pradesh

Balaghat 0 52.65% Bauxite,Manganese, Copper, Molybdenum

21.79%

*  Institute for Conflict Management data^  Forest Survey of India-2003, Ministry of Environment and Forests, Government of India#  Census of India report, 2001

Across the spectrum, the forestry and mining industries have been the most affected by the Maoist threat, primarily due to their location. However, the degree of Maoist threat to industries varies in different States, depending mostly on the nature of industry and its location.

In Jharkhand, for example, an elaborate machinery for ‘levy and tax’ collection has been created. A levy is imposed on Government contractors and industrialists, who are required to pay at monthly intervals, while those earning from forest products and mines are charged an unofficial ‘tax’ ranging between two and 20 per cent. Documents seized during special operations in the Garhwa-Palamau areas of what was then Bihar (now in Jharkhand) in January 2000, provided evidence of enormous and organised financial operations in which targets and ‘block budgets’ were defined for each ‘squad’ of the erstwhile Maoist Communist Centre (MCC). One such squad had raised Rs. Seven million in a single year and, for the year 1999, had informed its command that its target was Rs. Ten million. In addition, Local Guerilla Squads (LGS) exercised a monopolistic control over forest produce and Government contracts in their areas of dominance, and also received a substantial share of all development funding flowing into these areas.

In a recent revelation, a senior leader of the CPI-Maoist arrested by Jharkhand police from Hazaribagh on December 27, 2005, Tilak Ganju, told his interrogators that about Rs. 30 million had been collected by the Maoists from contractors, traders and industrialists of Bihar and Jharkhand in 2005 alone. A diversity in the extortion mechanism is, thus, visible across the country: areas that have low forest cover, for instance in Bihar, rely heavily on ‘tax’ and ‘levy’ charges on local industrialists and contractors.

Non-conformity to these Maoist demands is often met with attacks and destruction of equipment. Prominent instances of such retaliation include:

May 30, 2003: Naxalites of the erstwhile Maoist Communist Centre (MCC) abducted six persons, including a contractor who had refused to pay ‘levy’, in Narayanbeda village, east Singhbhum district, in Jharkhand.

June 2, 2003: MCC cadres attacked the office of a private company engaged in executing the Sone Canal project, setting ablaze dumpers, vehicles and furniture at Nawadih village in Rohtas District, Bihar. Property worth over Rupees 20 million was destroyed as the company had refused to pay ‘levy’.

January 3, 2005: Maoists burnt a camp office of a West Bengal-based company near Paraiya police station in the Gaya district of Bihar for refusal to pay ‘levy’. The company was engaged in replacing wooden sleepers with aluminum on railway tracks in Gaya-Mugalsarai section.

A 21-page report, prepared for discussion during the meeting of Chief Ministers of the Maoist-affected States in New Delhi on September 19, 2005, had mentioned that the Maoists have benefited through the illegal trade in Khair trees (Jharkhand), Tendu leaves (Madhya Pradesh and Chhattisgarh) and sandalwood (MM Hills-Sathyamangalam forests in Karnataka).

In August, 2000, the Commissioner (Land Records) and Chief Conservator of Forests (Land Management) of the then undivided Madhya Pradesh had admitted that the Naxalites had forcibly

occupied 20,000 hectares of forest area in Bastar Division (now in Chhattisgarh) and appointed their own ‘rangers’ and ‘deputy rangers’. Similarly, Balaghat in Madhya Pradesh, despite having among the richest deposits of Manganese and Molybdenum, has very few industries. Police officials cite the presence of three or four Maoist Dalams (squads) in the district as one of the primary reasons. Towards the Maharashtra-Andhra Pradesh border, police officials in Gadchiroli say they have evidence that the District had been coughing up nearly Rs. 140 million every year from the trade in tendu leaves and bamboo produce. Way back in December 2000, Maharashtra’s Principal Secretary (Home) M.R. Patil, while deposing before the Estimates Committee of the State Legislature, had warned that forest contractors, tendu leaf traders and local businessmen in the Naxalite-affected areas of Maharashtra were being forced to fund Naxalites in the State out of fear.

In Andhra Pradesh, Intelligence sources, in the year 2000, had indicated that roughly Rs 400-500 million was extorted by the erstwhile People's War Group (PWG) alone, each year. The Advocates’ Committee on Naxalite Terrorism in Andhra Pradesh (appointed by the High Court of Andhra Pradesh by its order dated April 4, 1997) had noted, “the extremist groups are collecting crores (tens of millions) of rupees from all types of traders, contractors or any other persons engaged in any economic activity. They are also imposing levy on the farmers. Collection of money is so easy that many unemployed local rowdies are finding it an easy way of making money.” The Maoists have continued with extortion as one of their chief means of sustenance, even during times of ‘peace’. Chief Minister, Y.S. Rajasekhara Reddy, on May 21, 2005 stated, “A rough estimate made by the Department was, in the first five or six months we gave them an opportunity to talk and police action was suspended, a rough estimate is that about Rs. 50-60 crore (Rs.500-600 million) has been collected by them and they did produce good weapons.”

Further, displacement of populace, especially tribals, due to setting up of new industries, has been viewed by the Maoists as an ideal issue to bolster their ranks. In their December 14, 2005, statement, spokesman Azad mentions that MoUs have been signed by different State Governments with the Jindals, Tatas, Posco, Essar-Ruia and Reliance in the past one year, ‘forcibly displacing people’. “We aim to turn this fear into a Red tornado by converting lakhs (hundreds of thousands) of sympathizers into action-oriented squads of the Peoples Liberation Guerrilla Army. The MNC incursion has already brought thousands into our ranks,” he added. Although, this pronouncement may sound vainglorious, it contains elements of a real threat and reflects the Maoists’ broad strategic orientation.

The mobilization of tribals around a range of grievances, both real and invented, is central to the Maoists’ strategy. A case in point is the January 2, 2006, death of 11 tribals in Orissa’s industrial hub, Kalinganagar in Jajpur district. The tribals, who were complaining of inadequate compensation packages, were protesting against Tata Steel’s proposed plant in the area, when the police fired at them. Even as reports point towards growing Maoist presence in the area, Union Home Secretary V.K. Duggal warned that “the Naxalite leaders would try to exploit the situation by trying to propagate that the state was ruthless and not worried about their welfare and we are worried about it.” In response to the incident, the CPI-Maoist Central Committee appealed “to people of all walks of life to condemn the ongoing repression on the tribals of Kalinganagar and support all struggles of the adivasis.” It added that “the committee would extend support to the struggles in Andhra Pradesh among various other regions.”

Although the Maoist spectre is largely concentrated in the rural areas, their presence and operational activity has been noticed in the mofussil towns and other semi-urban concentrations. This is clearly in line with the strategy of a protracted ‘People’s War’ and the principle of ‘surrounding cities from the countryside’. As the ‘People’s War’ spreads from forested areas towards the urban expanse, the structure of ‘revolutionary taxation’ and reprisals for non-compliance can be expected to follow. Despite periodic declarations on moving their war into urban areas, however, this eventuality is still a somewhat distant prospect, and one that can still be averted by effective state action – which, unfortunately, still remains substantially lacking.

Naxalites: The Economy at Risk

Volume 3, No. 31, February 14, 2005

Nihar NayakResearch Associate, Institute for Conflict Management

"We will come back soon." This was the message left in Telugu by the Communist Party of India-Maoist (CPI-Maoist) activists after their attack on the 9th Battalion of the Karnataka State Reserve police (KSRP) camp on the night of February 11. Six police personnel and a civilian were killed and five others injured when an estimated 300 Naxalites (Left Wing extremists), including some 50 women, attacked the KSRP camp with hand grenades, bombs and AK 47 assault rifles at Venkammanahalli under Pavagada revenue division of Karnataka's Tumkur district 130 kilometers from the State capital, Bangalore. The Naxalites took away 10 self-loading rifles, while six unexploded bombs and some grenades were subsequently recovered from the compound. A landmine was also spotted by a police rescue team at Kyatacherlu, an adjacent village, under a bridge on the main road leading to the spot where a tractor had been parked to block the security force (SF) movement. After the Naxalites exchanged fire with the police at Venkatammanahalli in April 2003, a platoon of the KSRP has been deployed in Tumkur as the extremists were frequenting the border villages.

The attack came five days after the police shot dead a top Naxalite leader, Saketh Rajan, and his associate in the Kallugudde forests in Chikmagalur district on February 6. Interestingly, the Chief Minister of Karnataka, Dharam Singh, had ordered an investigation into Rajan's killing after human rights activists charged the police with faking the encounter.

Over the past five years, Naxalite activities have increased in the districts surrounding Bangalore city - India's 'Silicon Valley'. Both Tumkur and Kolar districts share borders with Andhra Pradesh, and are situated to the North and East of Bangalore, respectively. The Naxalites have been active in both districts since the 1980's. They also have a strong presence in the Pavagada taluk (revenue division), 130 kilometers from Bangalore, where leaders such as Yenti Muthyalappa and Kurubara Banadiah contributed to the growth of the movement.

To the West of the city, the Naxalites have increased their activities in the Malnad region of the Western Ghats, comprising five districts: Shimoga, Udupi, Chikmagalur, Dakshin Kannada, and Hassan. Though initial Naxalite activity was concentrated in Tumkur, Kolar, Bidar, Gulbarga, and Raichur districts, they have progressively extended their base in the Western Ghats. In June 2001, coordinated agitations by various organisations, including the Kudremukh Rashtriya Udyana Virodhi Okkuta, Karnataka Vimochana Ranga, and Nagarika Seva Trust, against the eviction of tribal people from the Kudremukh National Park (KNP) area helped the then People's War Group (PWG) to establish its base by taking up the cause of the tribal people.

  Also ReadNaxalites: What, Me Worry? -- Ajai Sahni & Saji Cherian Left Wing Extremist Consolidation Undermines Electoral Processes -- Sanjay K. Jha

In addition to the park issue, 'exploitation' by the landlords was another issue that helped the Naxalites to expand their activities.

The southern part of Bangalore city shares its borders with the Dharmapuri district of Tamil Nadu, which has been under Naxalite influence for the past two decades. While the movement was substantially contained through the 1980's, it had regained strength by November 2002, when the authorities conducted a major crackdown. In addition to Dharmapuri, the Naxalites have a presence in at least another three districts in Tamil Nadu: Salem, Coimbatore and Madurai. On October 10, 2004, the Tamil Nadu Government had banned the PWG under the Criminal Law Amendment Act, 1908, in order to protect its territories from infiltration by extremist cadres from neighboring states such as Andhra Pradesh and Karnataka. Dharmapuri's strategic location appears to be a compelling factor in the Naxalites' choice of the district for their operations.

Following the killing of six of its policemen at Venkammanahalli, the Karnataka Government has identified 33 police stations across 10 districts in the State as "hyper sensitive and vulnerable" to attack by the extremists. Of these, 23 are spread across seven districts - Bidar, Gulbarga, Raichur, Bellary, Chitradurga, Tumkur and Kolar - which border Andhra Pradesh. Police Chiefs of these districts have been directed to declare a red alert in the areas within their jurisdiction and to fortify police stations. The remaining 10 police stations are spread across Shimoga, Chikmagalur and Udupi districts in the western part of the State.

The economic impact of the Naxalite rampage is potentially devastating. Prime Minister Manmohan Singh, on a visit to Bangalore on February 12, expressed concern over the growth of Naxalite activities in the country and accepted that Left Wing extremism was gaining momentum in Central India. He noted, further, that these were the "areas where the greater part of India's mineral resources, hydroelectric and other resources are located". US Ambassador to India, David Mulford, recently expressed concern that the growing Naxalite violence in the country could hit the inflow of foreign investments in the country. Among India's southern States, Tamil Nadu tops the list for foreign direct investment (FDI), followed by Karnataka. Unsurprisingly, despite the hype about 'Cyberabad', Andhra Pradesh is not in the list of top five FDI destinations in the India. Karnataka, the second largest FDI recipient in the country, approved 934 FDI proposals worth Rupees 7,826 crore (Rs 78.26 billion) during the year 2003. However, it slipped to the fourth rank in 2004. If trend in the proliferation of violence continue, India's target of US$ 15 billion in FDI in the year 2005 may not materialize. On February 9, 2005, Union Minister of Commerce & Industry, Kamal Nath, sought FDI into the country's sluggish infrastructure sector and reiterated Prime Minister's assessment that India would require an investment of at least US$150 billion over the next 5-10 years to upgrade its infrastructure. According to the Federation of Indian Chambers of Commerce and Industry (FICCI) FDI Survey, 2004, "While the outlook for FDI inflows into India in the near to medium term remains positive, security and terrorism concerns weigh heavily on the minds of foreign investors."

In addition to the activities of Indian Naxalites around Bangalore, the presence of the Young Communist League (YCL), a front organisation of the Communist Party of Nepal - Maoist (CPN-M) appears to be active in Bangalore. Slogans such as "Long live YCL Nepal" and "Maobad Zindabad (Long Live Maoism), Communist Party of Nepal" have been found plastered

on the walls in various localities, including the Lalbagh West Gate. Sources indicate that YCL has been collecting funds in India and was mobilizing Nepali students and workers for its activities. Ram Charan Shresta, a Kathmandu-based ideologue of the YCL, who is also believed to be linked with Pakistan's Inter Services Intelligence (ISI), coordinates the Indian operations. A former Chief of the Karnataka Police Anti-Terrorist Squad has claimed that the Nepali Maoists were in league with the Naxalites of the PWG. Such linkages and activities, while they are yet to translate into violence, can only further undermine investor confidence in Karnataka, and particularly in Bangalore.

Unfortunately, there appears to be little coherence in India's response to this challenge, and the wider problem of the rampaging growth of Left Wing extremism across large parts of the country. Over the past year, the Naxalites have been extending their areas of activity at the rate of an average of two districts each week, and have gone from just 55 districts in nine States in November 2003, to as many as 170 districts in 15 States by February 2005. In just the past 44 days, 106 persons - 32 civilians, 32 security personnel, and 42 extremists - have been killed in Naxalite-related violence, much of it directly connected with the call for a boycott of the Assembly elections in Bihar and Jharkhand. In Jharkhand, some of the Naxalite affected districts experienced a voter turnover of just 29 per cent, among the worst ever in the State. Nevertheless, the official response continues to be lack-lustre, and Defence Minister Pranab Mukherjee on January 29, had said that the Naxalite violence in the country was "manageable".

But efforts to 'manage' this 'manageable' problem are riven with contradictions. In Andhra Pradesh, the Greyhounds, a special force of the Andhra Pradesh Police, had cornered CPI-Maoist State secretary, Ramakrishna, and a number of other Naxalite leaders in the Nallamala forests in the Prakasam-Kurnool district border on February 3, 2005. Some frantic lobbying by sympathizers and front organizations in Hyderabad resulted in political intervention that forced the compliant Police to pull back and allow the extremists to walk free. The nexus between political parties and the Naxalites has been crucial to the long-term survival of this extremist movement, as well as to its extension over widening territories.

Prime Minister Manmohan Singh has now issued a call for a 'comprehensive strategy' to tackle the Naxalites. Regrettably, there is little evidence that the present regime at New Delhi or, for that matter, in any of the capitals of the affected States, have the political acumen or strategic foresight to deal effectively with this growing challenge.