The city built and controlled by the Tatas for over 100 years has long been controversial. A Supreme Court petition has challenged the right of an unelected private entity to administer Jamshedpur. The Jharkhand government has tried to preempt a court decision by declaring it an “industrial township.” We look at what that means—and what is at stake in this battle.
Researched by: Rachel John & Anannya Parekh
First, a brief history of Jamshedpur
Origin story: Inspired by the steel mills of Pennsylvania, Tata founder Jamsetji Tata began to scout around for reserves of iron and coal in India—which were found in Domuhani by geologist PN Bose. Tata Iron and Steel Co. Ltd (Tisco) soon set up shop—and were manufacturing ingots by 1912. The town that grew around these factories was carefully and lovingly planned:
Much of Jamshedpur’s subsequent success stems from its early design. India’s industrial pioneers often built homes and schools for their workers. But Tata took these commitments more seriously than most, inviting British socialists Sidney and Beatrice Webb to help plan out the city’s social services. “Be sure to lay wide streets planted with shady trees [and] space for lawns,” he wrote. “Reserve large areas for football, hockey and parks. Earmark areas for Hindu temples, Mohammedan mosques and Christian churches.”
The town was first named Sakchi—after a village nearby—and later renamed as Jamshedpur after World War I by the British. It was a tribute to the Tatas’ contribution to the British war effort.
Bit of notable trivia: When the Allies were in desperate need of armoured vehicles, the Tatas attached armour-plate hulls to imported Ford truck chassis—and sent them to the front. They were known as Tatanagars.
The era of Tata rule
In 1919, the Tatas set up Town Services to administer the rapidly growing town. And in 1929, it took formal ownership of 15,449 acres from the provincial government under British rule. The Tatas spun out a separate entity in 2004—called Jamshedpur Utilities and Services Company Ltd—to take over the reins. In 2015, the Financial Times said this of a ‘company town’ with 800,000 residents:
The man now responsible for delivering [Jamsetji Tatas] vision is Sunil Bhaskaran, a veteran Tata Steel executive with a bushy black moustache and jolly demeanour. His title is vice-president of corporate services, but the job is more akin to an American mayor, with $30m to spend each year on the city’s upkeep. Bhaskaran laughs off the mayoral comparison, but talks animatedly about plans for road widening and sewerage treatment, all to be undertaken by Jusco, the city management company Tata spun out in 2004.
‘Golden’ city: Over the years, Jamshedpur has attained near-mythic status in the press—a lotus flowering in the surrounding muck of Jharkhand:
The results are impressive. Jamshedpur’s neat dual carriageways are free of pot-holes. Power cuts are unheard of. Uniquely for a big Indian city, it is safe to drink water from the tap. In many ways, the city provides a glimpse of what India might have looked like, had its government been as efficient as China’s… “Jamshedpur is like an oasis in that part of the world, a beacon in eastern India,” says Ishaat Hussain, former finance director at Tata Sons.
Point to note: Jamshedpur’s facilities—including its lush golf courses—are provided to all residents—whether they work for the Tatas or not.
The other not-so-pretty Jamshedpur
Much of the debate over who rules Jamshedpur centres on inequality. Activists point to the ugly sprawl that lies right out the Tatas’ pristine city—where the janitors who service leafy executive bungalows live:
Beyond Tata’s central citadel lies a tougher problem: Jamshedpur’s sprawling outer city, run by regular municipal authorities, over which Tata has no control. Add in this area and the population jumps to 1.4 million. Outside, development is chaotic, with frequent power cuts and dirty drinking water. “This causes resentment, no question,” Bhaskaran says. Tata’s executives complain of frequent incursions to steal electricity or build illegal housing.
Lack of representation: No one is accountable for how Jamshedpur is managed—either in its inner sanctum or in its grimy outskirts. The Tatas refuse to take responsibility for the greater city—unwilling “to bear the heavy costs of providing its services to the rest of the city, as is often asked to do, viewing it as one long-term charitable headache the company could do without.” But the company has also resisted multiple efforts to set up an elected civic body. As a result, the other Jamshedpur—outside the Tata bubble—has been left to the whims of bureaucrats.
The legal battle: Over the years, various NGOs and governments have tried to set up a civic body. There have been three previous attempts—dating back to 1967. Each fiercely resisted by the Tatas:
The late Mody, then chairman and managing director of Tisco, had at that time famously said he would take on the state administration and the judiciary by the horns to prevent Jamshedpur from being overrun by elected representatives.
The latest attempt: is a Supreme Court petition filed by respected activist Jawaharlal Sharma—who has battled the Tatas since the 1980s. Sharma essentially argues that the status of Jamshedpur violates the basic democratic right to representation:
The basic purpose of the 73rd and 74th amendments was to ensure devolution of powers to the local elected body accountable directly to the people. Decentralisation is one of the most important pillars of democracy.... However, the objective is defeated if the state government in collusion with an industrial house refuses to establish a municipality by delaying the decision for several decades.
The Supreme Court is expected to issue a ruling in the case this month.
Enter, the ‘industrial township’ of Jamshedpur
Last week, the Jharkhand government moved swiftly to preempt the Supreme Court ruling. It declared plans to classify the city as an “industrial township”—under a little-known constitutional clause.
Say hello to Article 243Q: It requires every rural or urban area to be administered a Nagar Panchayat or a Municipal Council or Municipal Corporation. But it makes a key exception:
[T]he Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit, by public notification, specify to be an industrial township.
This industrial township can be administered by a private entity—as opposed to an elected body.
The Jharkhand plan: is to set up a municipal council with members nominated by the government and the Tatas. The Jamshedpur Industrial Township (JIT) will be administered by a 27-member committee—led by the minister in charge of the district. The deputy commissioner and a vice President from Tata Steel will serve as vice-chairpersons. In sum, there will be six seats allotted to the government, 11 to the Tatas, and another ten to “local representatives”—including MLAs and other local leaders. All members will be nominated–not elected.
Point to note: The announcement was not notified by the governor—as required by Article 243Q.
The bottomline: While others inequality and representation, some Jamshedpur residents have more pressing concern—that “Jamshedpur would cease to be the prized abode for Tata Steel and its people.” Hmm, then who will maintain the golf courses?
Reading list
There isn’t a lot of recent reporting on Jamshedpur—other than this Finshots explainer. The best pieces on the battle over Jamshedpur are this 2015 report in the Financial Times and a 2018 feature Mint. Economic Times reports on the PIL—while Hindustan Times has the latest notification. Mint has the behind-the-scenes negotiations.
