Project Report on Stakeholder Analysis

of
POSCO Steel Project in Odisha

Submitted By
Lovepreet Singh
Jillam Parida
Suman Sekhar Pradhan

Introduction
Who are the people who will benefit from any given development activity?
And whose interests might be harmed by it? Identifying the stakeholders,
large and small, individual & organizational, for any given activity is essential
if all the people who could have a bearing on its success or failure are to
have their voices heard. All stakeholders need to have their opinions taken
into account, even if some are to be set aside at a later date.
Stakeholder Analysis allows managers to identify the interests of different
groups and find ways of harnessing the support of those in favor or the
activity, while managing the risks posed by stakeholders who are against it.
It can also play a central role in identifying real development need and
that may mean devising a different programme from the one you thought
you were about to embark upon. Stakeholder Analysis should be an integral
part of programme design, and appraisal. It is also a useful technique to use
during reviews, missions and evaluations.
Stakeholder analysis is a term used in conflict resolution, project
management, and business administration to describe a process where all
the individuals or groups that are likely to be affected by a proposed action
are identified and then sorted according to how much they can affect the
action and how much the action can affect them. This information is used to
assess how the interests of those stakeholders should be addressed in a
project plan, policy, program, or other action. Stakeholder analysis is a key
part of Stakeholder management

Why do Stakeholder Analysis?

Stakeholder Analysis is used in the design and management of development
programmes to identify:
The interests of all stakeholders who may affect or be affected by a
programme
Potential conflicts and risks that could jeopardize a programme

Opportunities and relationships to build upon in implementing a

programme to help make it a success
The groups that should be encouraged to participate in different
stages of the activity cycle

Definition of Project Stakeholders:

Project stakeholders are individuals and organizations who are actively
involved in the project, or whose interests may be affected as a result of
project execution or project completion.
Stakeholders are all those who need to be considered in achieving project
goals and whose participation and support are crucial to its success. So
identification of all stakeholders is an important activity of the project
manager to ensure project success.
A stakeholder is any person or organization, who can be positively or
negatively impacted by, or cause an impact on the actions of a company,
government, or organization.
A stakeholder is an individual or group influenced by and with an ability to
significantly impact (positively or negatively) the topical area of interestGlicken,

Project: POSCO Orissa Steel Project

Location:
Jagatsinghpur District of Orissa (10 km south of Paradip Port)

Plant Capacity:
The 12 MTPA integrated steelworks will be completed in three phases of 4
MTPA each. In Phase I, hot rolled coil (2.5MT) and slab (1.5 MT) will be
produced. The construction for Phase I is scheduled to be completed by
2017-18.

Project objectives:
The objective of the project is to build one of the worlds most competitive
steelworks with advanced technology and stable iron ore supply from captive
mines, together with the economic development of Orissa

Target group:

The project target group comprises the population in the catchment areas of
project, as the steel plant will improve the road communication and markets
benefit everybody irrespective of income and profession. It is expected that
small and marginal farmers, small traders and micro-entrepreneurs, landless
people and poor women will be particularly benefited due the overall
development of catchment area. It is estimated that the total project
beneficiaries over the project implementation period will reach about an
estimated 48,000 direct and indirect jobs in the region. In addition, the
construction phase will create about 467,000 man years of employment for
the local population.

Potential Trouble makers:

The potential trouble makers in the project would be local communities,
NGOs, opposition parties and some professional associations.
For e.g. the local people in the area demanded a higher compensation with
regard to land that was procured for the project. This particular action of
some people influenced the public as a whole and the consequences were
detrimental. The Company and the Govt. in particular faced a lot of heat to
solve the issue, which in turn affected the planning of the project.
Some NGOs also created a hassle environment for the progression of the
project just to seek public attention with some vested interests. The media
also added to the woes just by continuously casting a negative image of the
project in front of general public.
As, we know in Indian Democracy, the opposition are one of the major
factors as roadblocks in different projects .In this case, the local parties
spread a negative word of mouth to the public in general and influenced
them to ask for better compensation and rehabilitation facilities, which were
in-fact pretty high according to industry standards.

Project Partners
Several Stake holders can become partners in the project. For e.g Suppliers
and Vendors who were supplying raw material to the company can become
one of the partners in the project, along with the existing customer base can
be one of the leading partners in the project. In this case Govt.of Odisha is
one of the partners in implementing the project within the stipulated
timeframe. Likewise, L&T and Hindustan Construction Company(HCC) can be

the partners for developing the industry infrastructure of the project.

Investors and the financial institutions can be the partner in the project.

Stakeholders:

Stake Holder Matrix

EPG
orm
ovpi High
seoi
ryap
ePen
Importanc
e
acm
tesr e
cnsy
tu
s
o Low
m
e
r

l
t
c

l
t
t

Low

Influence

High

SWOT Analysis

Stakehol
ders
Group

Strength

Weakness

Opportu
nity

Threat

Media

Communi
ty

Governm
ent

The ability to
widely distribute
project
information to
widely vast
Audience

Lack of
knowledge
regarding
technical
specification
which can lead
to
misinformation

The exposure of
information
before formal
announcement
made
Knowledge
of Lack
of
local situation
institutional
Creating a very Power
friendly
Lack of Technical
atmosphere
to Knowledge
work
Can
influence
local people
Help
in
implementing
CSR initiative
The
ability
to
provide
administrative
support
The
ability
provide
infrastructure
The
ability
to
influence people
The ability create
a friendly policy
and decision

The tendency to
take
populist
decision
The tendency to
scramble to the
pressure
of
NGOs
and
Opposition
Resettlement
and
rehabilitation
activities

Promote
communicati
on
and
engagement

Inappropria
te
and
misuse of
media
in
different
circumstan
ces

Enhancemen Can
t of Standard influence
of living
local
people
Community
against
Development company
Can create
roadblock
in
executing
the project
Enhancing
the
economical
state of art

Subsequen
t changes
in
rules
and
regulations
Creating
a of
nurturing
governmen
environment t policies
for industry
Unnecessa
ry
roadblock
in
providing
license

and
allocated
resources

Suggestions
The project implementation got delayed due to delayed acquisition of the
allocated land to the project; the situation could have been avoided by
implementing a community development and awareness drive before going
for actual acquisition of land. A more supportive atmosphere could have
been created, if the company would have adopted a fair and transparent
acquisition policy of their own rather than that of Government.
Lack in Community trust building efforts as well as educating the
stakeholders about the positive prospects of the project. This initiative could
have played a vital role in successful acquisition of land as well as getting
the community support for setting up the project.
They could have taken a holistic approach in partnering with the local NGOs
in ensuring the proper allotment of funds meant for development of local
community centers, i.e. schools, hospitals and temples etc. They should have
emphasized on imparting vocational training and skills building to the local
community to enhance their standard of living and in turn enhance their own
credibility among the local community.