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INFO RUEHNE/AMEMBASSY NEW DELHI PRIORITY 1045
RUEHCG/AMCONSUL CHENNAI PRIORITY 0411
RUEHBI/AMCONSUL MUMBAI PRIORITY 0411
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UNCLAS CALCUTTA 000425 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL IN EINV
SUBJECT: JHARKHAND SWEARS IN A NEW CHIEF MINISTER 
 
REF: calcutta 0401 
 
¶1.  (U)  Summary. On September 18, an Independent Member of 
Legislative Assembly (MLA) Madhukar (Madhu) Koda was sworn-in as 
the new Chief Minister of Jharkhand.  Koda is Jharkhand's fifth 
Chief Minister since the state's creation in 2001. Three 
defectors from the previous government - Anos Ekka, Kamlesh 
Singh and Harinarayan Rai were also sworn-in as ministers. Koda, 
who has the support of 42 of the MLAs in the 82-member house, 
has been asked by the governor to prove his majority on or by 
September 25.  He is likely to prove his majority on the floor 
of the Assembly on September 20.  End summary. 
 
¶2. (U) In his first press conference, Koda announced that 43 
agreements reached between the previous NDA government and 
industrial houses including Mittal Steel, Tata Steel and the 
Aditya Birla Group will be reviewed from scratch by his UPA 
government. The previous government had signed 43 MOUs for 
projects with proposed investments exceeding Rs 175,000 crore 
(Rs 4.6 crore is approximately USD 1 million), including a Rs 
40,000 crore steel plant by global leader Mittal Steel.  The 
Birla Group had signed an MOU for a Rs 7,800 crore aluminum 
smelter plant in the state. The agreement review would also 
cover the rehabilitation and health insurance policies of the 
previous government.  For those wishing to invest in the state, 
Koda said, "The UPA government will ensure a friendly 
environment for serious investors who are committed to the 
growth of the state. The UPA government is committed to give a 
friendly investment policy." 
 
¶3. (U) On unemployment, Koda said his government would take 
steps to eradicate poverty, noting that 54 per cent of 
Jharkhand's population lived below the poverty line. Social 
security would also be provided to all sections of society. He 
said the government would also set up institutions of higher 
educations so that students did not have to go out for pursuing 
studies.  Koda added that the new government would churn out "a 
more lucrative surrender policy" to bring Maoists back into the 
mainstream. 
 
¶4. (U) Koda's immediate problem is the formation of his 
ministry. His failure to get a single minister from within major 
UPA coalition partners to join the cabinet indicates that there 
is intense lobbying for ministerial berths within the UPA 
coalition.  Koda appears non-plussed saying that the ministry 
would be expanded only after he proves his majority on the floor 
of the Assembly on September 20. 
 
¶5. (U) The now opposition BJP was quick to predict trouble ahead 
for the new regime. "Why, despite countless rounds of 
negotiations, have Madhu Koda and his UPA patrons failed to 
decide on the names of other members of the new council of 
ministers even four days after Munda's fall? asked senior BJP 
leader Sarayu Roy.  Roy told Post that that the Koda-led UPA 
government "would not last long." 
 
¶6. (U) Bio of Madhu Koda follows: 
 
At 35, Madhukar (Madhu) Koda is the youngest Chief Minister of 
Jharkhand.  Koda ran as an Independent MLA in the 2005 elections 
after failing to get on the Bharatiya Janata Party (BJP) ticket. 
 The BJP did not expect that the short, thick moustached and 
curly-haired Koda, who prefers designer clothes to the khadi 
dress code, would one day emerge as the dark horse to dismount 
the 18-month-old Arjun Munda government. 
 
Hailing from a tribal farming community, Koda began his career 
as a social activist and participated in politics before he 
completed his matriculation.  Joining the RSS in 1990, Koda 
entered the assembly as a BJP member in 2000 from the 
Jagannathpur constituency and became the Panchayati Raj minister 
in the Babulal Marandi government, which was formed soon after 
the bifurcation of Bihar. He has remained a minister since then. 
 
Born on January 6, 1971 at Patahatu in West Singhbhum, Koda 
faced several hurdles in his political career, including the 
failure of his marriage during his tenure in the Arjun Munda 
cabinet.  The soft-spoken Koda continued his balancing act 
deftly, not allowing his personal life to affect his political 
career. "This post is not a bed of roses but a crown of thorns," 
observed Koda soon after staking claim to form the government. 
"If I become the chief minister, it will be the support and 
blessings of god, my elders and friends." 
 
JARDINE