Tuesday, July 10, 2012

Jharkhand's Illegal Coal

Sorry I haven't blogged in the past month. I wish I could say it was because I didn't have access to Internet, or I was too busy even in the evenings, but that would be a lie. The real reason? I've just been super lazy.

To recap: since arriving in India, I have spent 2 weeks in Delhi, a week in Ahmedabad with day trips into rural Gujarat, a few days in Pune, a few days in rural Karnataka, and a week visiting villages in Jharkhand.

While traveling around Jharkhand, it is impossible to miss the hundreds of "koyla cycle wallahs" plying the highways. The koyla ("coal") cycle wallahs are men who push bicycles carrying huge loads of crudely-coked coal in jute sacks. My first thought upon noticing these men was this can't possibly be the Big Coal supply chain. Don't the coal companies use trains or at least trucks? They must make millions of dollars a year, so surely they can afford a more efficient transport system than men pushing bicycles! In fact, doesn't their business require a more efficient mode of transport?


koyla cycle wallahs on the Ranchi-Hazaribagh highway

 koyla cycle wallah gliding downhill (they walk the bikes uphill and sit semi-sidesaddle downhill)

My first stop in Jharkhand was Hazaribagh, where I stayed with my friend Surabhi. I asked Surabhi what the deal was with the koyla cycle wallahs. She launched into a rant about how India isn't a developed country like the US and here industries just are not mechanized the way they should be. It may very well be true that India's industries are not mechanized enough, but I didn't believe this could really be the answer in this case.

I joined an NGO called PRADAN around some villages (more to come on that in a future post), and I asked the employees there about the koyla cycle wallahs. They told me that these people are part of an illegal coal mining industry and sell the coal on the black market--so, in fact, I was right to think they were not employees of major coal mining companies. I tried to further probe--where do they get the coal from? are they stealing from the companies' mines or did they dig their own illegal mines? who runs these operations? is there an illegal coal cartel? where are they taking the coal to? who are the customers buying coal from the koyla cycle wallahs? how much money do the koyla cycle wallahs make from one cycle worth of coal? how much coal are they carrying on one bike? how many hours does it take to transport the coal? how many times a week do they do this? where are these guys from, local villages or are they migrants from other regions of India?--but the PRADAN employees told me they did not know anything more.

A few days later I visited villages with another NGO, the Gene Campaign, and I asked them all these questions as well. They told me that the koyla cycle wallahs are their own employers and there is no one orchestrating the operations. They said the koyla cycle wallahs participate in every step of the supply chain: they go into the mines themselves, cut the coal from the rock, coke the coal, load up their cycles, transport the coal, and sell the coal to consumers. The operations, according to this employee of Gene Campaign, are not run by anyone, and the mines are illegally constructed by local villages. It takes 2 days to transport the coal from the mines to Ranchi, and the koyla cycle wallahs earn Rs 1800 in one trip.

Some of this just didn't seem right to me. How could these men really do every part of the supply chain? Their bikes just have so much coal on them, more than could certainly be carried out of the mine by hand (or more likely, on their heads) in one trip. If this activity is illegal, then what would stop someone from stealing the coal off your bike while you go back into the mine for a second or third or tenth load? Plus it would just be terribly inefficient.

A quick Google search brought up this incredible article that answered all my questions: Coal Distribution Network Through Bicycles in Eastern India. According to this article, the koyla cycle wallahs are just one element of the supply and distribution network: different people cut the coal from the rock, carry the coal out of the mine, coke the coal, transport the coal (that's where the koyla cycle wallahs come in), and sell the coal. There is a coal mafia that steals coal from the legal major mines and transports the coal in trucks, but it operates at a much larger scale than the koyla cycle wallahs and does not seem to be involved in their operations. Instead, the illegal mines belong to the villages, and the coal from these mines meet the cooking, heating, and kiln demands of smaller users, such as households, tea shops, dhabas, and local workshops, who cannot acquire coal from either the state-owned companies (most legal coal goes straight to major power plants) or the mafia. The police collect bakshish (bribes) in exchange for turning a blind eye to their activities. Some of the mines are old abandoned mines originally built by large state-owned companies, and other mines are inexpertly dug by villagers. In both cases, the mines are extremely dangerous, because they are not structurally reinforced in any way. Collapses and accidents are not uncommon, and miners have zero safety equipment--no helmets, no headlamps, nothing. The mines are dimly lit with smoky kerosene lanterns. An average mine can produce 10 tons of coal per day. About 1000 koyla cycle wallahs deliver this coal to the town of Hazaribagh daily--and that's only one town. Throughout Jharkhand there must be several thousands of men involved. (Seriously, if you find this blog post interesting at all, you should really read this article.)

 
illegal coal supply chain (source here)

While walking along the highway, I spotted some koyla cycle wallahs taking a break and decided to talk to them. They thought my curiosity was strange and funny, but they were very friendly and patiently answered all my questions. They told me that they purchase the coked coal from a depot located near the illegal mine for about Rs 300, and they sell it to a distributor in Ranchi for Rs 1500 (or do they make a profit of Rs 1500, meaning they sell it for Rs 1800? I didn't have a translator with me so I might have missed or misunderstood some details). The distributors then sell the coal to people who would not otherwise have access to legal coal supplies, as I mentioned earlier. The load they carry on the bikes weighs 240 kg (~530 lbs). It takes 30 hours of walking over two days to reach Ranchi from the mines, and they ride the bikes back to the mines in one day. They make this trip twice in a week. The koyla cycle wallahs are all adivasi (tribal) and belong to villages surrounding the mines (so no, they are not migrant workers), and they often travel in small groups. All activities stop during the monsoon, as some of the mines become filled with water and these men must tend to their fields. The men I interviewed said their families grow rice and some vegetables.

Even if we assume the lower profit of Rs 1200, this is significantly more than the koyla cycle wallahs could make in a week of wage labor. The going rate in Jharkhand for labor is Rs 120/day. If you work all seven days in a week, you would earn Rs 840/week--versus Rs 2400/week schlepping coal. The income doesn't even compare, so it is clear why someone with no employment opportunities would choose this work, despite the dangers.

When I asked the koyla cycle wallahs what they use the extra money for, they told me they spend it on higher quality food for their families and their children's education. One man told me that the nearest secondary school was several kilometers away from his village, and the daily public transportation is expensive. He wanted to ensure his sons could go to this school so that they would not also have to become koyla cycle wallahs to support their future families (this man didn't mention whether or not he had daughters, and I didn't want to ask because that could have come across as accusatory, like how could you not educate your daughters?).

Arundhati Roy, a very outspoken author-activist who considers herself a champion of adivasi rights, famously wrote back in 2009, "will someone who's going to the climate change conference in Copenhagen later this year please ask the only question worth asking: Can we leave the bauxite in the mountain?" Well, Roy, I have a question for you: What if the adivasis don't want to keep the bauxite--or in this case, coal--in the mountain? What if mining, whether in legal state-owned mines or in small illegal village-owned mines, presents relatively lucrative employment opportunities that adivasis would otherwise not have? (If you click on the link, you'll see that she argues the Naxalite (Maoist) insurgency is evidence that adivasis do not want these mines. The truth about the Naxalites is more complex than she lets on. A lot of intimidation goes on to force villagers to support them.)



a similarly dirty industry--the legality is unclear--exists in the villages: stone crushing near quarries. all the haze in the photo was produced by the stone-crushing machines. people who work here can get lung cancer.

 a closer view of the stone-crushing machines. women do most of the heavy lifting here (note that woman carrying a dish of rocks on her head). sorry for the blurriness; I took this photo from a moving motorcycle.

In a related story, sometimes the Naxalites hijack coal trains and take the driver and goods hostage until the companies cough up a heavy "levy" to allow their train to continue to its destination, as was in the news yesterday (thanks Vincent for the link!). These Naxalite activities are separate from the mafia I mentioned earlier.

In an unrelated story, on the road toward Jamshedpur, a.k.a. "Tata Nagar" (it's a town completely created by Tata where they have many of their major factories, such as steel and car production) ("nagar" means town), I noticed there is an unusually large number of trucks. These trucks must be part of the huge Tata supply chain. I was bored during my travels so I started playing the license plate game, but only with trucks (all of you Americans reading this must know what I mean by the license plate game: I was counting the number of states the plates belonged to). During this game I noticed a disproportionately large number of NL, or Nagaland, license plates, and zero other license plates from the Northeast states. And then I noticed that the drivers were most definitely not Naga (Nagas look more similar to Southeast Asians than to "mainland" Indians, for lack of a better term). Upon investigation, I discovered the reason behind this profusion of NL plates: Nagaland's truck taxes are the cheapest of all the states in India, so many transport companies register their vehicles in Nagaland, even if they have no intentions of running operations in the state. Or at least this is what I was told by someone who runs a manufacturing equipment supply firm in Jamshedpur. Jharkhand was the first place I've ever noticed so many NL license plates, and I play the license plate game quite often--I wonder why trucks in other regions of India don't take advantage of the low Nagaland taxes to the same extent.

Alright, well, I think I have bored you sufficiently. I'm out.

5 comments:

  1. Shaabaash! Someone needed to write about the cycle coal-wallahs, and I'm glad you did. I'm so jealous that you were in Jharkhand as well!

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  2. I think you got the rates wrong, I don't think they get half of what they must have told you. I am planing to write a story on them but I am confused on them or a international scam.

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  3. Lisbon Ferrao,

    I don't think the rates are wrong (or at least, if they're wrong, they're not too far off) because (a) the koyla cycle wallahs have no reason to lie to me about what they earn--they know full well that a foreigner is not going to purchase coal from them, so they aren't trying to extract a higher price from me--and (b) I have confirmed those rates from other sources. It is highly unlikely to be an international scam; most scams in India are domestic. There is definitely an illegal mafia-run coal business that may or may not have international ties (I know nothing about that), but the koyla cycle wallahs I discuss here are involved in a completely separate business. They do not work with the mafia. If you want to write a story on the koyla cycle wallahs, the best thing you can do is go speak with them, their suppliers, and their customers. The article I reference above is the result of thorough research and is chock full of great information. It's a good place to start. The link, again, is: http://www.eoearth.org/article/Coal_distribution_network_through_bicycles_in_eastern_India

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  4. well, I been here since the past few months (company work) and I have a local friend who tells me about them. However, I will cross check but it really does not matter (the rates) I like the article a lot, its very accurate. About the international scam, I was not talking about the coal stuff, its something going in Ranchi, thought I write about it.
    Thank you very much for the link.

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