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This is an archive article published on August 2, 2011

Naxals put price tag on road projects in Bihar

Charge 7-10% of project cost as levy; govt,police say can help only when companies complain.

V N Mishra says he cannot remember how many threat calls he has received since he joined as a project manager on M/s MBL Infrastructure Ltd’s road project in Aurangabad.

Officers at work on projects in Bihar’s Naxal belt have come to expect these calls,as well as demands by Maoists to pay up a levy — one of the worst-kept secrets of the upcoming construction projects here.

Bihar Deputy Chief Minister Sushil Kumar Modi admits Naxals are collecting money to let the projects continue. “The government does not deny levy collection but construction companies have to tell us so we can provide them security cover. We have already given security guards at some places,” he says.

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Several area commanders arrested in Aurangabad and Gaya have admitted to charging levy up to 7-10 per cent of the project cost. “If the quality of work is poor (correspondingly the profit margin of company will be higher),Maoists even bargain for up to 20 per cent levy of the project cost,” said a police officer in Aurangabad.

When the project gets delayed,more money comes in,and consequently,flows into Naxal pockets. One estimate for rise in project costs is an average of at least 20 per cent.

A CPI (Maoist) politburo member arrested recently in Gaya,Jagdish Yadav,reportedly told police he had collected at least Rs 5 crore as levy in the Aurangabad and Gaya jungles.

Forty Central government road projects are under way in areas hit by Left Wing Extremism (LWE) in Bihar — 15 in Gaya,14 in Jamui,six in Aurangabad and five in Jehanabad — all started under the Nitish Kumar regime,the earliest in 2009. The cumulative project cost works out to Rs 497.94 crore,to build 468 km of roads. Till May 27,work was finished on 220.4 km. The Asian Development Bank (ADB) is funding state highways worth nearly Rs 700 crore in Gaya,Aurangabad and Jehanabad.

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Incidentally,Chief Minister Nitish Kumar has been accused of taking a “soft line” on Naxals,in opposing Operation Green Hunt and inviting them to contest elections.

It was in 2009 end that work started on the 78-km Shivganj-Rafiganj-Goh-Uphara-Devkund-Baidarabad road stretch,where Mishra is posted. It is running behind its February 2012 deadline,with Kolkata-based M/s MBL Infrastructure Ltd having completed work only on a 15-km stretch. However,even if they want to step up the pace of work,they can’t continue beyond 6 pm; there is no guarantee of police help as dusk sets in.

The company did try to offer some resistance initially,but paid the price — four dumpers were torched in November 2010 and two JCB machines and two tractors burnt last May.

MBL Infrastucture Ltd’s administration manager H Mishra admits he got an anonymous call to deposit Rs 25 lakh the day after he had joined. All private guards of the company are deliberately kept unarmed to prevent any weapon loot by ultras. Government officials themselves do their best not to stand out in the Red belt. Many park their vehicles at Aurangabad and move around on motorcycles to pass off as locals. V N Mishra says he can’t imagine bringing his family where he works.

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Villagers openly talk of Bihar Jharkhand Special Area Committee (BJSAC) members Bhupendra Baitha and Shivshankar Baitha alias Tyagiji being in charge of levy collection in their area. Lower-level functionaries are sent with the demand,before the “deal” is struck.

Take the case of another major project supported by the ADB — construction and repair of the Dumaria-Imamganj-Sherghati,Guraru-Tekari-Ranitalab road stretch of 153 km. The construction company is M/s Gammon India Ltd,Mumbai. The stretch crosses the Naxal belt of Gaya. Though company officials have not lodged a complaint,they have been apprising police of “disturbances”. Special area committee member Sandeep is in-charge of this area. Gammon India is also way behind its deadline of December 2012.

Says Magadh range Deputy IGP Umesh Kumar: “We cannot deny levy collection from construction companies but none of them is coming forward with complaints.” He says at least some construction companies deliberately delay work,which allows them to extend their contracts. If firms give him a fixed duration for security needed,it can be provided,he adds.

Says the 131 CRPF battalion Commander,B C Patra: “We have nabbed 25 hardcore Naxals in the past three years. All of them have given district police details on how they collect levy. Jay Paswan and Pintu Yadav,now in jail,had told us about 10-20 per cent levy collection.” Three CRPF companies are stationed in Jamui alone to assist state police in fighting Naxals.

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When the police have intervened on the basis of a complaint by a company,the price has been heavy. Last September,eight policemen were killed and three taken hostage after they ventured into Maoist hideouts following complaints by some road construction companies of heavy collection.

Since then,no road company has faced any “problems” in the Banka-Jamui-Munger zone,suggesting money has changed hands smoothly and quietly.

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