Essar pays protection money to Maoists: WikiLeaks

Washington, Sep 6 (PTI) A leaked US diplomatic cable has
said the Ruias-led Essar Group, which has mining interests in
Chhattisgarh, pays protection money to Maoists to safeguard
its operations in the state, a claim dismissed as baseless by
the company.
"A senior representative from Essar, a major industrial
company with large mining and steel-related facilities in
Chhattisgarh, told Congenoff (Consul General Office) that the
company pays the Maoists 'a significant amount' not to harm or
interfere with their operations," a cable dated January 11,
2010, originating from the US consulate in Mumbai and released
by WikiLeaks stated.
"When the Maoists occasionally break this agreement and
damage Essar property or threaten personnel, Essar sets
different Maoist groups against each other to suppress the
situation," it said.
The cable said the Maoists pose a real threat to
development and security in the region and efforts to bring
these areas back into the orbit of the government is
warranted.
But, the Essar group in a statement denied the
allegations as baseless.
"Essar is a law abiding corporate. We don't think it is
appropriate or necessary to react to baseless and unfounded
allegations," the company spokesperson said.
As the government prepared to initiate action against the
Naxals in Chhattisgarh, the US consulate, based on the trip of
its officials to the region, said that the potential for human
rights abuses by the security forces in the state is high.