Financing a 'revolution' is not a child's play. It is all the more tough when the organisation is proscribed, and hence, has to operate underground, secretly. For the Indian Maoists, also known as Naxalites, the conditions are a little more unfavourable because they claim to be fighting for the deprived and neglected sections of the society, who are poor; and the Maoists do not enjoy the support of the affluent sections of the society, against whom they are waging their so-called revolution.

But still, the Maoists are being able to collect and manage vast sums of money. According to a media report of April 9, 2008, the annual 'extortion' by the Maoists is a whooping Rs 1,000 crore. On the other hand, Mr Vishwaranjan, a former senior official of the Intelligence Bureau, India's internal intelligence agency, and currently Director General of Police (DGP) of the central Indian State of Chhattisgarh, told this author nearly a year ago, on July 16, 2007, that the annual extortion is Rs 1,500 crore! This is truly impressive.

The question that naturally arises is: how is this possible? The answer is not far to seek. The Naxals extort money from those who they can reach, and those who have ill-gotten wealth. The fear of violent retribution makes people pay money. Those who pay-up to the Naxalites include politicians -- big and small, corrupt government servants, businesses and rich landlords. Besides, the rebels also raise funds through contributions from sympathisers and activists.

According to the 'Constitution' of the Maoists, which was prepared in September 2004, during the foundation of the CPI (Maoist), and reportedly amended at the Unity Congress held in January 2007, each cadre (party member) has to pay an 'annual subscription' of rupees ten. Besides, the rebels will decide upon the amount to be paid annually by over-ground supporters, who are, naturally, gainfully employed.

Writing in December 2001, well-known environmental writer Richard Mahapatra claimed that, in Orissa, bamboo fellers, who have been organised by the rebels, 'contribute' rupees five every day from their wages.

Similarly, poor tribals who are engaged in the collection of kendu/tendu/beedi leaf (similar to tobacco) that is grown in forest areas also contribute to the Maoists. They have reason to do so. The rebels have organised them, fought for their cause against the beedi leaf contractors and ensured that they get at least the minimum wages stipulated by the government, if not more. In the seventies, when the minimum wage prescribed was five naya paise for a bundle of 100 leaves in Andhra Pradesh, the beedi leaf contractors were paying four naya paise.

And then, the Naxalites came on to the scene. After that, every year they have been able to successfully negotiate with the beedi leaf contractors and secure better wages for the tribals. This has, in fact, been the greatest success of the Naxalites. On the other hand, they also 'extort' huge amounts from the beedi leaf contractors themselves, in order to allow them to do business. In fact, extortion from beedi leaf contractors is the single largest source of 'income' for the Naxalites.

A variety of businesses pay-up money to the Naxalites. A senior intelligence official in Andhra Pradesh told this author, on conditions of anonymity, that Class A, B, C and D public works contractors pay eight, six, four and two percent respectively, of the total bid. That apart, for instance, a large paper mill in Andhra Pradesh is believed to have paid Rs 50 lakh every month in 2001; the current figures are not available. Similarly, a rayon factory, also in Andhra Pradesh, pays rupees one crore annually to the Maoists alone, a Senior Superintendent of Police told this author.

The Naxalites demand and secure money from politicians of various hues and from different levels. The Home Minister of one of India's highly affected States is said to have paid a huge sum to the rebels to get elected from his constituency. Another top political leader, who went on to become a Cabinet Minister in the Union government, paid rupees seventeen lakh to the Maoists to facilitate his election, a senior intelligence official from Jharkhand told this author in February 2007. Reportedly, a former Union Minister, Chandradeo Verma, who is an accused in the fodder scam, paid money to the Naxalites to win the elections by defeating his CPI (ML) rival in Bihar. These are mere illustrations, and numerous such cases abound.

One junior Central intelligence official in Visakhapatnam district of Andhra Pradesh told this author in April 2006 that, government servants, including teachers, in GK Veedhi mandal were asked to pay a 'fine' of approximately one month's salary for continuously being absent from work.

Moreover, Harivansh, Chief Editor of the Ranchi-based Prabhat Khabar, assumed to be the largest circulated Hindi daily in Eastern India, told this author in January 2005 that in Bihar and Jharkhand, "they [the Naxalites] have even circulated a limited number of booklets listing the sources of [their] funds. Reportedly, some government employees too have paid levy to the Naxalites. It might not be incorrect to term this 'state patronage' of the Naxalites". To buttress his assertion, Harivansh went on to add: "in 1993 senior officials admitted to the Chief Secretary and the Director General of Police that they paid a levy to a Naxal group. In 1997, at a meeting called by the then Bihar Chief Minister, a Superintendent of Police went on record as having paid a levy. A few years back, the Chatra District Commissioner paid a levy to the Naxals".

All this persuades one to wonder if Naxalism is indeed not a thriving business proposition!


Dr. P V Ramana is Research Fellow at the Institute for Defence Studies and Analyses, New Delhi. The views expressed here are his own. He can be contacted at: palepuramana@gmail.com.