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Economic Effects, Escalating Threat, Naxalite

Jharkhand In Focus: The Naxalite Tax

11.30.07 | By Shlok Vaidya | Comment?

The Price of Doing Business 

The Jharkhand Naxalite operating budget is based on extortion:

  • Rs. 70,000 per coal firm per year
  • Rs. 25,000 per transportation firms per year

The Rewards of the Shadow Economy 

This money flows in the black market:

  • Individuals earn between Rs. 1,000 to 3,000.
  • The terms of their employment includes a life insurance payout of Rs. 125,000.

The Naxalite Tax 

The return on the Naxalite investment in the their extortion rackets is an annual budget of Rs. 3.2 billion ($80 million). 

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