Bamboo in Orissa: Trade and Livelihood Perspective - Vasundhara

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2004. See also the box 'The Naxal effect'). As a follow up to that, in 1993 OFDC
‘appointed’ several paper mills first as 'labour contractors' and then as 'raw material
procurers'(RMPs). This enabled them to control the harvesting operations as per their own
need. However, the system itself was controversial. In late 1960s, the system of appointing
'labour contractors' had been abolished in India since it led to large-scale corruption and
practices harmful to the interest of the state/nation. Through OFDC's initiative, the same
system was revived again in violation of a nation-wide policy decision of 1960s(Saxena,
op.cit., p.14) on the plea of state interest. In his letter # 22812/F&E dated 8-10-03, the Joint
Secretary to the Govt(Forest and Environment Deptt.) intimated the Managing
Director,OFDC that ‘the State Government, with a view to increase the production of
bamboo in forest areas and to get a better royalty’ had approved the proposal for
appointment of labour contractors under OFDC on the basis of following terms and
conditions:
• The labour contractors would work for 12 years.
• The system would be reviewed in every two years.
• All the bamboo produced by them would have to be lifted by them.
• The silvicultural responsibility would lie with OFDC (Source: Forest Department
files).
The PCCF informed all the Conservator of Forests(territorial) on 5 th November 1993 that
M/S. Ballarpur Industries Ltd., Straw Products Ltd., and Orient Paper Mill had been
appointed as labour contractors, and that the coupes be delivered to OFDC so that they
could either work directly or through labour contractors. Then the Joint Secretary to the
Govt(Forest and Environment Deptt.) wrote to the MD, OFDC that M/S. Ballarpur
Industries Ltd. had been appointed as labour contractor for the forest divisions of
Nayagarh, Rairakhol, Athamallik, Athagarh and Boudh; and that the ‘terms and conditions
for the engagement of labour contractor for these areas may be finalised in consultation
with them (vide his memo # 25766, dated 20-11-93). This indicates the extent to which a
lobby successfully worked behind the decision of appointing paper mills as labour
contractors. This labour contractor system was replaced by the RMP system in 1994. It
may be mentioned here that the lobby that worked in the interest of paper mills was
uniform in its approach, but the vested interests were not uniform as a result of which some
got more benefit and some got less, leading finally to a litigation in the Orissa High Court.
The HC directed to the govt in 1994 for equitable distribution of bamboo and bamboo
growing areas on the basis of installed capacity of the individual paper mills(Source: Forest
Department files).
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