SANA

NEW DELHI: The Maoists are taking a cut from government contracts awarded in their areas of influence, in effect making the taxpayer fund their activities. Security agencies estimate the amount to be between Rs1,400 crore and Rs1,600 crore annually, a substantial portion of which is used for procuring — and even manufacturing — arms.

The rebels have institutionalised the system in Jharkhand, Bihar, Chhattisgarh and Orissa, states awash with contracts for mining, logging and road works. Contractors for coal mining are made to pay 20-30% of their earnings and for roads 15-20% of the contract amount.

“The percentage of the cut is decided by senior Maoist members and the task of collecting the amount is the district commander’s,” said a senior Union home ministry official. “We came to know of the rates through the contractors and arrested Maoists. The rebels also charge from truck drivers; depending on the size of the load, the amount is Rs100-150.”

He said when it came to logging for catechu — an Acacia extract used in tanning besides other things — the workers are paid so little that they contact local Maoist commanders and ask them to extort money from contractors. “The businessmen dealing in catechu are often threatened by the Maoists, but sometimes it is their own fault. They bribe local government officials to exceed their contract quotas.”

On arms procurement by the Maoists, Ajai Sahni, executive director, Institute of Conflict Management, said: “It has been established that northeast-based terrorists have supplied arms to the rebels.”

Sahni said, “The weapons are bought from Southeast Asian countries and smuggled inside India through Bangladesh. Ulfa (United Liberation Front of Asom) is one of the organisations doing business with the Maoists.”

Sahni said the Maoists have used funds to start arms manufacturing units and give contracts for developing rocket launchers. “Several businessmen were contacted [by the Maoists] in the past to make rocket launcher parts.”

Recently, a factory making weapons for the Maoists was busted in Chhattisgarh; similar factories have been discovered in Bihar and Jharkhand as well. During encounters in Jharkhand and Chhattisgarh in the past two years, security forces have recovered Chinese, American, Israeli and Belgian guns, small arms, rifles and grenade launchers. Home ministry officials say of 230 weapons seized, about 80 are Chinese.