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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Red flag to green steel

Ex-Maoists forge new destiny in Gadchiroli Gadchiroli: The rugged, forested terrain of Gadchiroli district, long synonymous with the violence and deep-rooted anti-establishment tenets of the ‘Red Ideology’, is now witnessing a remarkable social and industrial transformation. At the Lloyds Metals and Energy Ltd. (LMEL) plant in Konsari, once-feared Maoist operatives are shedding their past lives and embracing a new, respectable existence as skilled workers in a cutting-edge Direct Reduced Iron...

Red flag to green steel

Ex-Maoists forge new destiny in Gadchiroli Gadchiroli: The rugged, forested terrain of Gadchiroli district, long synonymous with the violence and deep-rooted anti-establishment tenets of the ‘Red Ideology’, is now witnessing a remarkable social and industrial transformation. At the Lloyds Metals and Energy Ltd. (LMEL) plant in Konsari, once-feared Maoist operatives are shedding their past lives and embracing a new, respectable existence as skilled workers in a cutting-edge Direct Reduced Iron (DRI) and pellet plant. This ‘green steel’ project, part of LMEL’s push for an integrated steel complex in the region, is functioning not just as an industrial unit but as a crucial pillar in the Maharashtra government’s surrender-cum-rehabilitation policy. So far, LMEL, in coordination with the state government and the Gadchiroli Police, has provided employment and training to 68 surrendered Maoists and 14 members of families affected by Naxal violence, a total of 82 individuals, offering them a definitive pathway back to the mainstream. The Shift The transformation begins at the company’s dedicated Lloyds Skill Development and Training Centre at Konsari. Recognizing that many former cadres had limited formal education, the company implements a structured, skill-based rehabilitation model. They are trained in essential technical and operational skills required for plant administration, civil construction, and mechanical operations. For individuals like Govinda Atala, a former deputy commander, the change is palpable. “After surrendering, I got the right to live a new life,” Atala said. “I am very happy to get this job. I am now living my life on my own; there is no pressure on me now.” Suresh Hichame, who spent over a decade in the movement before surrendering in 2009 too echoed the sentiments. He realized the path of violence offered neither him nor his family any benefit. Moreover, his self-respecct was hurt. He knew several languages and carried out several crucial tasks for the banned organization remaining constantly under the shadow of death. Today, he works in the plant, receiving a steady monthly salary that enables him to care for his family—a basic dignity the ‘Red Ideology’ could never provide. The monthly salaries of the rehabilitated workers, typically ranging from Rs 13,000 to Rs 20,000, are revolutionary in a region long characterized by poverty and lack of opportunities. Trust, Stability The employment of former Maoists is a brave and calculated risk for LMEL, an industry that historically faced stiff opposition and even violence from the left wing extremist groups. LMEL’s management, however, sees it as an investment in inclusive growth and long-term stability for the district. The LMEL has emphasized the company’s commitment to training and facilitating career growth for the local populace, including the surrendered cadres. This commitment to local workforce upskilling is proving to be a highly effective counter-insurgency strategy, chipping away at the foundation of the Maoist movement: the exploitation of local grievances and lack of economic options. The reintegration effort extends beyond the factory floor. By providing stable incomes and a sense of purpose, LMEL helps the former rebels navigate the social transition. They are now homeowners, taxpayers, and active members of the community, replacing the identity of an outlaw with that of a respected employee. This social acceptance, coupled with economic independence, is the true measure of rehabilitation. The successful employment of cadres, some of whom were once high-ranking commanders, also sends a powerful message to those still active in the jungle: the path to a peaceful and prosperous life is open and tangible. It transforms the promise of government rehabilitation into a concrete reality. The plant, with its production of iron ore and steel, is physically transforming the region into an emerging industrial hub, and in doing so, it is symbolically forging the nation’s progress out of the ashes of extremism. The coordinated effort between private industry, the state government, and the Gadchiroli police is establishing a new environment of trust, stability, and economic progress, marking Gadchiroli’s transition from a Maoist hotbed to a model of inclusive and sustainable development.

Outpacing Inflation: Smart Investing for Financial Survival

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In our fast-evolving economy, one of the most underestimated threats to wealth creation is inflation. While many associate inflation only with rising prices, it’s much more than just costlier vegetables or higher fuel rates. In reality, inflation quietly erodes your purchasing power - meaning the same Rs 100 will buy you fewer goods and services over time. And there are two types of inflation that impact your financial health.


Price Inflation (Cost-Push Inflation):

This is the most common and visible form of inflation. Over time, the prices of goods and services - be it groceries, electricity, or transport - rise gradually. This happens due to factors like increased production costs, population growth, and resulting demand-supply mismatches. Historically, India's average consumer inflation hovers around 6–7 per cent annually. That means something costing Rs 1,000 today could cost Rs 2,000 a decade later.


Lifestyle Inflation (Aspirational Inflation):

This is less visible but equally dangerous. As your income rises, so do your aspirations and spending habits. You may upgrade from a sedan to an SUV, shift from home-cooked meals to dining out frequently, or switch from budget holidays to luxury resorts. While these choices enhance your lifestyle, they also inflate your monthly expenses and reduce your ability to save and invest.

When combined, both price inflation and lifestyle inflation can silently eat away more than 10 per cent of your money’s value every year.


The Solution: Inflation-Beating Investments

To preserve and grow your wealth, it’s crucial to invest in inflation-beating assets. These include:

  • Equities (Stocks): Over the long term, equities have consistently outpaced inflation by offering higher returns.

  • Mutual Funds: Equity-oriented mutual funds provide diversified exposure to the stock market and are suitable for everyone.

  • Gold: A traditional hedge against inflation, gold maintains its value during economic uncertainties. So basically, it beats inflation and also acts as a good hedge against equities.


Invest in the above products for your long-term goals.

Keeping your savings in low-interest options like savings accounts or fixed deposits might feel safe, but they often yield returns lower than inflation - resulting in a loss of real value over time. Invest in savings accounts, fixed deposits, or recurring deposits only for your short-term goals (within 3 years)


The Bottom Line:

Inflation is inevitable, but its impact can be controlled. By being mindful of rising lifestyle expenses and choosing growth-oriented investments, you can ensure your money retains - and even increases - its purchasing power. After all, true financial freedom isn't just about earning more; it’s about making your money work harder than inflation.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.

Views personal. He could be reached on 9833133605.)

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