Naxalites

Financing

Naxalites conduct detailed socio-economic surveys before operating in a target area and depend on diverse resources. Studies have indicated correlation between the core area of insurgency and the areas with extensive natural resources. The mining industry is a major financial source, wherein they collect about 3% of the profits from each mining company that operates in the areas under Naxal control as a means to continue mining operations and for "protection" services which allows miners to work without having to worry about Naxalite attacks. A 2006 report indicated that the Maoists extorted about ₹14 billion (US$150 million) annually. The organisation also funds itself through the drug trade, where it cultivates psychoactive plants such as marijuana and opium, which are then distributed throughout the country by middlemen who work on behalf of the Naxalites. About 40% of Naxal funding comes through the cultivation and distribution of opium. A surrendered Naxal claimed that they spent some of the money on public infrastructure while the rest is used for the sustenance of the group. In 2011, the Indian police accused the Chinese government of providing sanctuary to the movement's leaders, and claimed that the Pakistani ISI was providing financial support.