CENTER FOR SCIENCE AND THE ENVIRONMENT
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- Title
- CENTER FOR SCIENCE AND THE ENVIRONMENT
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RF_E_4_SUDHA
Av
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Examination of Eiiviroiuneiital Viability and
;
Sustainability of Select Projects
4-
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Hon’ble Supreme Court
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National Environmental Engineering Research Institute
Nehru Marg, Nagpur- 440 020
December 6, 1996
w
2.
Sustainable Development
2.1
Promises and Preconditions
.
| hu Unllud Nulluns UuiiHillusion on Lnviioiiipuiit and Duvulopinuiil (UiunllaiiU
Commission) defined Sustainable Development as a process ip which the
exploitation of resources, the direction of investments, the orientation _gf
•
Hax/oinnmpnt and the institutional chanqes are all made consistent
i
with future as well as present needs.
The principle of sustainable development, as derived from Agenda 21, has
following underlying premises :
.
Symbiotic relationship between consumer human race and producer
natural systems
•
Compatibility between ecology and economics .
The following proconditions must be satisfied lo’enablo discernible movement
towards the goal of sustainable development:
•
Equity and social justice
•
Endogenous choices
%
• ' Economic efficiency
•
2.2
Ecologic harmony.
Ayonda for Suutalnublo Dovolopmonl
Tho concept of sustainable development is closely linked to the carrying capacity
of ecosystems. Accordingly, the underlying correlation between population, poverty and
pollution must be analysed against the backdrop of ecosystem's capacity to provide
supportive capacity for socio-economic development, and assimilative capacity for
maintenance of acceptable quality of environment. With these preconditions, the
following agenda for sustainable development ensues:
.
Carrying Capacity based Planning for Socio-economic Development
•
Preventive Environmental Policy
•
Structural Change in Economy
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Table of Contents
Sr. No
Contents
1. •
Preamble
2.
Sustainable Development
3.
Examination of Select Projects
Page No.
3.1
Ciubli’uu liitugiulud Iblund Duvulopinunl PLin, Kurulu
3.2
1000 MW Coal based Thermal Power Plant of
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e
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Mangalore Ppwer Company (with Cogentiix as
lead partner) at Nandikur, Karnataka
3.3
2,00,000 TPA Paper Industry of M/S Sinar
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Mas Pulp and Paper (India) Ltd near Bhigwan,
Pune District of Maharashtra
4.
3.4
Bandra-Kurla Complex, Maharshtra
43
3.5
Sanghi Jetty/Cement Project, Kutch, Gujarat
55
Conclusions and Recommendations
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List of Exhibits
Page
No.
No.
Description
Exhibit 1
Current extent of Vembanad Lake IRS 1C LISS III,
February 1996
Ecological Pyramid (based on Biomass: Kg Dry Wl Km'2)
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
. Exhibit 7
Exhibits
Exhibit 9
Exhibit 10
Exhibit 11
Exhibit 12
Exhibit 13
Exhibit 14
Exhibit 15
Exhibit 16
Exhibits .
Exhibit 18
for Cochin Backwaters
•
Land use / land cover in Kochi region
Changes in land cover in the region around Kochi
backwater^, IRS 1A LISS II, January 1990 and IRS 1C
LISS III, February 1996
Proposed reclamation and road network in Goshree
Integrated Development Plan at Kochi on FOG of IRS 1C
LISS III, February 1996
False colour composite showing locations of the project
•site of Power Plant and Wharf Jetty of Mangalore Power
Corporation
Land use / land cover In the region surrounding the situ ol
the Power Plant
Ecological Pyramid (based on Biomass : Kg Dry Wt Km‘)
for Mangalore coastal waters
M/S Sinar Mas Pulp and Paper Industry site and land mass
Discharge Point of Wastewater from M/S Sinar Mas Pulp
and Paper Mills Ltd
Changes in land cover in Mahim bay and its surrounding
areas
Ecological Pyramid (based on Biomass :‘Kg Dry Wt Km')
for Mahim Creek, Mumbai
Low water line and High water line in 1990 overlayed on
FCC of IRS 1C LISS III March 1996
Area showing project site for Cement Plant, Mining Lease
Area, and Jetty Site of M/s Sanghi Jetty and Cement Plant
Jetty site and area within 5 km radius Highlighting the
Mangrove
Ecological Pyramid (based on Biomass : Kg Dry Wt Km')
for Kharo Creek, Bhuj (Gujarat)
Violation of Coastal Regulations Zone Notification by the
Projects under examination
Satisfaction (or otherwise) of the attributes of Sustainable
Development by the select projects
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10
12
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30
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39
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62
66
70
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1.
Preamble
I he Hon’ble Supreme Court; in its order dated November 7, 1996; directed
NEERI to examine the environmental viability of following projects based on <he
Oriiiciplo of Sustainable Dovolopmont :
•
Goshree Integrated Island Development Plan. Kerala
PoW°'
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S'nar ““ Pu'P & Paper <lnPia) L,d
' near Bh?gwan VJne
•
Bandra-Kurla Complex, Maharshtra
•
Sanghi Jetty / Cement Project, Hutch, Gujarat.
.
The Hon’ble Supreme Court directed NEERI, through its Director Dr. P,
Khanna, to appoint necessary Teams of Scientists, who may visit the projects
on the spot and after examining all the necessary aspects, includigg the
conformity of the projects with the principle of Sustainable Development, and
various notifications issued by the Government of India regarding Coastal Zone
Regulation, and give its opinion and recommendations to the States concerned.
Copies of the report were also to be filed in the Hon’ble Court.
In keeping with the directives of the Hon’ble Court, Dr, P. Khanna. Director.
NEER! appointed two Teams of 13 scientisis, under the leadership of Dr. P. Rambabu
and Dr. R. Sarin. Thoso teams visited the project sites between November 12-18,
1996, interacted with the concerned State Government officials, representatives of the
project proponents, and representatives of the residents of the areas where projects
are proposed; and conducted field investigations. These teams analysed field data,
and all documents made available to them at the site and at Nagpur. The
observations and recommendations of the NEERI teams are presented in this report.
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■^ujeunoi
2.
Sustainablo Development
2.1
Promises and Preconditions
I no Unllud Nullons Uoniiiilsuluii on Liivlionmuiil and Duvulopmuiit (Uiuntluiid
Commission) dofmed Sustainablo Development as a process,.ii) wh|ch tho
exploitation of resources, the direction of investments, the orientation._of
technological development, and the institutional changes are all made epnsistent
with future as well as present needs.
The principle of sustainable development, as derived from Agenda 21, has
following underlying premises :
Symbiotic relationship between consumer human race and producer
•
natural systems
Compatibility between ecology and economics .
•
The following preconditions must be satisfied to'enablo discernible movement
towards the goal of sustainable development:
•
Equity and social justice
•
Endogenous choices
• ‘ Economic efficiency
•
2.2
Ecologic harmony.
Agenda for Suutulnublo Development
The concept of sustainable development is closely linked to the carrying capacity
of ecosystems. Accordingly, the underlying correlation between population, poverty and
pollution must be analysed against the backdrop of ecosystem's capacity to provide
supportive capacity for socio-economic development, and assimilative capacity tor
maintenance of acceptable quality of environment. With these preconditions, the
following agenda for sustainable development ensues:
•
Carrying Capacity based Planning for Socio-economic Development
•
Preventive Environmental Policy
•
Structural Change in Economy
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2.2.1
Enlarged role - and Objective use - el tools like Linvironrnuiital Impact and
Hisk Assessment, Environmental Audit, Natural Resource Accounting, and
Life Cycle Assessment.
Carrying Capacity based Planning for Soclo-oconomlc Development
Developmental planning in India is based on the concept ot minimum needs in
which the planning priorities and activity targets are established to meet certain basic
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minimum needs of the poorest sections of population. This approach, albeit laudable,
lias led to groator inequality in Indian society as it ovorlookod tho basic- requirement of
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availability of resourcos (viz. ecological, tranformational (technology), distributive and
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institutional) that form the building blocks in developmental process. In contrast, the
developmental planning prpcpss based on regional cqirylnq capacity takes coqni^ancu
of tho fact that the ecosystem, with its biotic and abiotic pompononts, provides the basic
■ resources that support production-consumption activities, and assimilates the residues
produced during the course of these activities.
Sustainable
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pioduclion-consumplion levels
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calls
for
irade-offs
through
the
hainossing of
development
between
desired
the
supportive and
the
assimilative capacities of regional ecosystems. The utilization of carrying capacity, thus,
requires
a series of adjustments to
reconcile competing
aspirations in
the
developmental process. This shift in developmental planning process also brings out
the fact that analytical models could be used to answer technological questions
whereas value judgmonfs must be rnudo in societal and political domains for devising
pragmatic developmental and environmental strategies,
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Given certain inputs of human and natural resources, the carrying capacity
based planning process (uses a holological approach to estimate tho changes in
carrying capacity indicators. Tho differentials between the realized and desired carrying
capacity indicators are ovorcomo through a combination of institutional, informational
and altitudinal strategies aimed at changes in tho exogenous driving forces, systems
□
structure, and the aspirations and tolerances that determine the level of desired carrying
capacity. It Is obvious that the success of this approach depends entirely on its
acceptance by the administrative and political jurisdictions.
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2.2.2 Preventive Environmental Policy
•
Preventive environmental policy (PER), In keeping with the precautionary
Br.inciple, is directed towards the conditions that give rise to environmental
problems and anfcipatpry actipp? to readjust these conditions so as to prevent
potential environmental damage. It must be recognized that the preventive
strategies cannot avoid future environmental damage totally, but can limit it ipore
effectively than the reactive policy,
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Adoption of preventive strategies does not make reactive strategies superfluous
as environmental backlogs must bo cluurod and unlorusuun pioblums dealt with.
P'-agmatically speaking, the preventive and reactive approaches complement each
othur and that is how the logislativo, administrative, Institutional and policy formulations
niubt bo duvisod.
Identification—and—implementation
of
environmentally-sound
and
econonically-efficient,technologies in production sectors within the paradigm of
Preventive Environmental Policy warrant evaluation of various feasible options,
and, the selection of the best option, based on economic, environmental and
social considerations.
2.2.3 Structural Economic Change
Structural change involves large scale technological substitution towards
environmentally-benign
modes
of
socio-economic
implementation of:
development
through
the
,
Cleaner technologies in production processes
Recycle and reuse technologies to substitute end-ol-pipe treatment
processes
Biotechnology for substitution of non-renowablo resources
r^co^;
*with
renewable resource base as substrates in production processes
Integrated technologies that minimize cross-media transfer of pollutants
thus minimizing overall pollution-induced risks in all environmental media.
There are three broadi groups of resources upon which the economic activity is
based, viz. non-renewable resources, renewable resources, and information. The
sectors of economy that deal with non-renewable resources are environmentally the
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most problematic. Restructuring of the economy by substituting environmentally
harmful branches with equally productive, but environmentally compatible ones.
forms an important strategy in environmental policy.
*
Structural change aims at raising the levels of both ecologic and economic
efficiency by increasing material and energy effectivity in production and consumption
processes in order to minimize the expense on environmental protection while keeping
, the cost of natural resource exploitation within acceptable limits. It involves
restructuring of the economy based on ecological principles. Structural change ip
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economy coyld bo brought about by delinking of economic; growth from the
consumption of ecologically significant resQurqQg,
2.2.4 Enlarged role - and Objective use - of tools like of Environmental Impact
and Risk Assessment, Environmental Audit, Natural Resource Accounting,
and Life Cyclo Assossmont
Environmental. Impact and Risk Assessment, Environmental Audit, Natural
Resource Accounting, and Life Cycle Assessment are potentially the most valuable,
inter-disciplinary, and objective decision-making tools with respect to green economy,
alternate routes for development, process technologies, and project sites. These tools
provide an anticipatory mechanism which establishes quantitative values for parameters
that indicate the quality of the environment and natural systems before, during and after
the proposed developmental activity, thus allowing measures ensuring environmental
compatibility with economic efficacy.
These tools could form a major instrument in the assessment of developmental
activities in the context of regional carrying capacity, provided the conceptual framework
is extended to the cumulative assessment of policies, plans, and projects on a regional
basis.
Most ecological problems are the cumulative result of environmental and
BQclgtal Impacts of human activity In a region, planning for austtilpiiblQ
development in the context of ecosystem’s carrying capacity thus requires
systematic
identification,
quantification,
evaluation,
and
management
of
cumula*ive trends in significant environmental variables on a regional basis.
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Functional planning regions need to be identified based on ecological criteria
such as climate, vegetation patterns, and soil classification: and airshe
watershed boundaries rather than the administrative jurisdictions
3.
Examination of Select Projects
3.1
Goshree Integrated Island Development Plan, Kochi, Kerala
3.1.1
The Project
3.1.1.1
The Integrated Island Development Plan, proposed by the Goshree
Island Development Authority (GIDA), aims at the development of a regional
a regional
commercial centre close to the existing Central Business District in Kochi with higher
levels of infrastructure and service facility providing exclusive water front locations; to
h'gh class residential fthd CQmmQrcial areas: hotels and tourism potential areas; and
irnpigyinaito^gnaLocpnomY by topping the inhoiont natural potomipi tor tho
prom^jon oLtourism through {-pclamalion and development of 250 |Ki of land during
I'hapd;!. <>l Vie PJiltL ill 11^0.
construction of
Jour bridges connecting the CQchin (Kochi) mainland and the four
inlands (viz, Than|honni, Bolqatty, Vallarpadam and Vypeen). Reclamation of 110 ha
land around Vallarpadam is envisaged in Phase-ll of the plan.
3.1.2
The Region
3.1.2.1
The state of Kerala is endowed with an expansive body of backwaters
comprising lakes, lagoons, estuaries and mangrove swamps. The population density
along the coastal area is around 2100 porsons/km2 in comparison to the average
population density in the State of Kerala at 748 persons/km2. The Cochin backwaters,
a constituent of Vembanad estuary, have been experiencing high levels of
anthropogenic pressures during the last fivo decades. The population pressure
(population density in Cochin Corporation area is 5500 persons/km2); reclamation of
land (694.19 ha area during 1920-85) for harbour and urban development; intensive
exploitation ol nursery and breeding areas in backwaters; discharge of untreated /
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M-fU/1) )l
partially treated sowago and industrial oflluohls; and over incmasing sediment load
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being transported through uvuts duo to tho duloiustation in uulchmunt aiuus
constitute the environmental pressures on this sensitive ecosystem. The estuaries
o
and the wetlands, that serve as buffer for draining 2100-5100 cumecs of waters
in riverine streams, constitute the nursery grounds for one-third of the
economically important fishery resources of the Country.
3.1.2.2
The State of Kerala is situated along a narrow strip of land between the
Western ghats and the Arabian sea, and has tropical climate. Abundant everqmen
rain forests on the Western ghats, lush-green midlands, and coconut groves in the
coastal zones characterize the aesthetic landscape.
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3.1.2.3
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The chain of brackish water bodies and lakes on the coastal plains are
intor-connoctud by oxtonsivo network of canals suppoiting navigation and other
Iu"ctioris. The, backwaters play a significant role in the socio-economic and
culturaL_hjstory of the State besides constituting an invaluable aesthetic
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resource.
3.1.2.4
One of the major human interventions in recent times in Vembanad lake
was the construction of a bund in 1977 to prevent saline water intrusion into the
cultivated lands in low-lying areas of Kuttanad region. This bund, 1.441 km in length,
has cut off the Vembanad lake from the rest of the backwaters. The reduction in
£lima[Y productivity, fishery resources, growth of sea weeds, and degradation
in water quality, that is well-documented, as a consequence of this intervention
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illustrate the sensitivity of the ecosystem.
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3.1.2.5
Thu Cochin backwaters at the northern tip ot Vembanad lake is a
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tropical positive estuarine system, which is the largest in the west coast extending
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length of 70 kms, and the width varies between 500 to 6000 m. It has a water spread
between 9° 40' and 10°12' N, and 76°10’ and 76°30' E (Exhibit 1). The lake has a
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area of appioxirnatcjly 300 krnK. Water from tho rivoi basins ol Poriyai
and
Muvattupuzhu drains into this estuary which has a tidal area of approximately 500 m*.
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Thu uuu and fresh water mixing is through a channel ot about -150 motors width at
Cochin, and through another channel at Azhikode near Kodungalore. The tides in the
backwaters of Cochin are of a mixed semi-diurnal type with a range of 1 m in harbour
area. The dynamic nature of hydrology of the backwaters is evidenced by the
fact that small land masses within backwaters appear and disappear over a
period of few decades (e.q. Gundu Island).
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3.1.2.6
The salinity gradient in Cochin backwaters supports diverse species of
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flora and fauna according to their tolerance for fresh, brackish or high-salinity aquatic
environments. This tropical estuary with high bioproductivity (primary productivity
being 0.5 to 1.5 gm'3 day'1) also acts as a nursery ground for many species of marine
3
and estuarine fin fishes, crustaceans and mollusks. The low lying swamps and tidal
creeks, dominated by sparse patches of mangroves (with their high capacity of
nutiK.'iit rocyclingL give shnlfor.lp juygnilpfi. of.iLWOy imp.Qj1.an! spocios,. T.hg JUUd .flats
protect juveniles of fish / prawn from the predators. The average number of prawn
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seeds per haul in standardized trap nets ranges between 700-2000/m3. This clearly
indicates that the backwaters support nursery grounds of commercially
important prawns and fishes.
The NEERI’s study on food chain in Cochin backwater during the
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3.1.2.7
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inspection in November 1996 reveals that the principal energy sources in the aquatic
eco-system are me'obenthos, macrobenthos and epifauna. Benthic fauna are primarily
dependent on detritus. The ecological pyramid in this region, estimated by the NEERI
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team based on biomass stock at different trophic levels, show an inverted shape
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(Exhibit 2). However, due to a major contribution of meiobenthos (13.15% of tolal
/
fauna) and epifauna, the pyramid is still in unstable eguilibrium. Any interference
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adversely affectinn meiobenthos which constitute 13.15 % of total biomass
□
(against the desired range of 10-30%) would cause irreversible damage to the
sensitive ecosystem.
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Il»)h pnpnlatinu density
•
thi) ........... .
|hu M|,.h| |o(). u|
Oeoondence of 3.2 % of population on agnatic resources
Thojareposed major Intervention tending ,o urban Qrow|h arn||nf| lhe
^LoOmr.^SAnatrive Vcmnanud estuary, nnrt Jlonq the highly stressed none,a,
a comprehensive
^abjasons/l^^
gH!tgaSI£M^imbp eonte>1 o,
. ............ .
"Y^^'t^^^-^^^tTiSgjmcLM^imilatiyejmEracitjcofJhr^enyironmental media
rlbk cxpoburu.
3.1.3
Project Appraisal Process
3.1.3.1
The Kerala PoUuUon Control Board issued conditional No obienlif,n
Certificate to thrs proposed urban development intervention on April 5, 1995 in
response to the proponent’s application of December 12, 1994. The Ministry of
nwronment and Forest, Government of India accorded conditional clearance to the
project on May ,0. ,995 in response to the proponent’s uppiicat.on alon9»tb the
Rapid Environmental Impact Assessment report of November 30,
1994
The
re,|a,e ,0 nf,s,_nfn,„,
conditions delmnnM by Ilte^aisaljMh^^
mml°r.nq. The post-preleet mpnitnrinn mechanisms are, hoover nn,
the conditional clearance
3.1.3.2
Ihe^following procedural gaps
appraisal process:
•
are discernible in the project
The Information prov.dod for appraisal by the project proponent regarding the
mgron .MimUncfudo the vitat information on agumicue^gy. vi2. id0nl.,icatl0n
nursery and breeding grounds, nutrient recycling function, and details of ecological
pyram,ds, lood-webs, bio-productivily and biodiversity; hydroloqmal functions viz
buffer against flooding, sejt waler intrusion, tidal action; risks due to the
transportation of ammonia barges anrl oil tankers; and stress onTnlrasfrucure. viz~
water, electricity and transportation
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3.1.3.5
The NEERI team has followiriqs additional observations regarding
the appraisal process :
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M<>rF did not lakd coqniz.inco of llio gios:; viol.ilions ol Coastal 7pne
Regulations (CRZ notification, February 1991) involved in the proposed dredging,
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reclamation of land, and commercial development on reclaimed land white
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according its conditional clearance to the project
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The MoEF recommended a study on identification of hydrological implications of
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the project in its conditional clearance (letter of May 10, 1995), whereas the
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availability of details on impacts on hydrology and aguatic ecology was critical for
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initiating the appraisal process
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The MoEF refers to the results of a ‘non-existent’ ‘on-going'1 study being carried
(
out by NEERI (“ordered by the MoEF") on carrying capacity of this region. A major
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urbari-doyplopmonl project in an ecologically sppsitiyo area - Cochin backwaters -
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should be considered for evaluation and assessment only in the context ct
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regional carrying capacity in keeping with the principle, premises and agenda for
Sustainable Development as delineated in Section 2 of this report
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rtiu tacts that the application of GIDA to the Ministry of Environment and Fn,ests
(November 30, 1994) preceded its application to the Kerala State Pollution Control
Board (December 12, 1994), and the declaration on extension of area under the
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Ore a tor Cochin Development Authority in Novombor 1995; which was already a
part of the MoEF’s clearance letter of May 10, 1995 for determining CRZ - ll/lll
areas; indicate that the environmental appraisal process has violated the existing
norms, practices and rules.
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1 NEERI, in collaboration with the local S&T institutions and voluntary agencies, and in
consultation yvith. the Senior Advisor, MoEF had submitted a proposal to the MoEF on ‘Carrying
Capacity based Developmental Planning for Kochi Region’ in July 1994, after §jx months of
preparatory work. The fate of this proposal is still undecided by the MoEF
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3.1.4
Environmental Viability of the Project
3.I.4.1
I lie piopos.il for intenratud (Iuvg’IopiiioiiI ot lour i:.liiink» in Cur I mi
backwaters needs to be assessed in view of the ecological, environmental-and
socio-economic functions of the Cochin backwaters, as also the stress on the
city of Cochin due to the project induced growth.
31.4.2
The following ecological and environmental functions would be impaired
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due to the proposed project interventions :
■
The Cochin backwaters, on an average, drain 2150 cumecs ot water, with a peak
of 5500 cumecs during monsoon, through an opening of 450 m width adjacent to
the Cochin Port. During spring tide, the inflow of water from the seaside into
backwaters is 88 cumecs. The project interventions would lead to attenuated
velocity of flow in tho project area and concomitant increase in siltation. This,
combined with the increasing siltation duo to inappropi late managuinont ot tho
watersheds of draining rivers, would decmasojihc..ret_eiitjpn„c«ij2acity pLbacKwatcirs
<;on-,idnr;ii<ly during tho ..ng/.t do<:.id<>
Thf) .l’l>>J‘’‘.:l ii'lpiyoiltiop:. would . i-agso
'iiyoivioii of .mm.ind !/.)% bl duiining wut'M gUiiiility tv vfhvr uiv<m tvsuliuiu in
c/1cnsiye. floorling in Kochi Melropolilaii aroa
.
The Cochin backwaters, due to their salinity gradient and shallow natuio, aie
breeding grounds for economically important fishery resources, and are principal
sites for me'obenthos that are critical for the stability ot ecological pyramid.
Backwaters are the critical factor responsible for the rich fisheries potential of the
state of Kerala (1/3 of India's fisheries resources). The project interventionjwpuld
reclaim 250 ha (Phase I of the project) of such nursery grounds in addition to
adverse impairment of salinity gradient. The construction phase of the project
)
would adversely affect the me'obenthos concentrations and' their productivity!
(further impairing the ecological pyramid). The operation phase and project
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induced growth would degrade the sediment and wafer guality and impair the
economic potential of backwaters, viz, coastal and deep sea fisheries
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Coastal shelves, lagoons, estuaries, and creeks constitute B % of the earth's
uiiMcu; mid conhihuh, ?•>% ol Ihu global biulogiual pioductivity. Ihu back waters
oLKerafa su^jort as much biological productivity and diversity as tropical jain
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forests. The proposed intervention and the concomitant growth would impair
biological productivity_by adversely impairing $oa - fresh water mixing, light
intensity and salinity gradients, and water guality. The sparse occurrence of
mangroves on the four islands is due to earlier interventions affecting the salinity
gradient in addition to reclamation and lopping
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Tbv VrfllUJUty ni.idy by Nl-LKI luum gp |||V nillHIHUIl! UtlvlUUlMl.Ill uuUdUv.
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H^JtUlhllyy capuo.iY (djluliun potunlidl) in the study region due to the proposed
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intervention is 12%
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The navigational potential is not adversely affected by the intervention but for the
potential increase in siltation in some channels where dredging is proposed
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Edition to air pollution load arising out of the proposed development in year
gOl.LAO, estimated by NEERI team, is 368 kg/hr HC. 408 kg/hr NOX, 24.5 kg/hr
SO? and 1352 kg/hr CO. The existing 24 hourly ambient aii quality in the urea
adjacent to the project site is HC 4.8 ppm, NO, 35 pg/m3, SO, 33 pg/m3 RSPM 57
pg/m3 and CO 7.72 mg/m3. The ambient levels of CO exceed CPCB standards b/
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two folds
•
The supply of 10 MLD of water in the project area is envisaged in GIDA proposal
D
Tor Vypeen island, while the developmental plan of Greater Kochi Development
;>
Authority has no such provision
•
A captive power plant of 250 MW capacity is proposed on Vypeen island to
augment the power supply to Kochi, and also for the proposed residential and
commercial areas on tlio four islands. Thu unviigiunental viability ot such a
Bfofiosaf has not been examined by the MoEF despite the eco-sensitive nature of
the region
O
•
The proposed project, envisaging integrated development of four islands as an
extension of the Kochi's Central Business District, would expose at least a
0
3
J
0
D
population of 5 lakhs to the huightunod risk due to transportation of ammonia
barges and oil tankers through the Kochi's backwaters
■ ''i
6^J
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UUI/JI
u<
I'
fi '•
a~
•
£ 0
1 -
As per NEERI team’s Quantitative
•e Risk Assessment, the navigat.onal risk m the
your 2011 AD would mducu by a I
factor of 20 if 14^00^0^^
are provided. ^^fS^aredjojho alternative of
increasing thejrefluency of ferrys/boats
I
0
3.1.4.3
k □
fc J3
id
The
proposed
Interventions
ol
GIOA
violate
lire
Coastal
FfaloMions (M„EF No.ifanion, February 1M1) ln lho
HmJatnullu.,
--------- Zone
. .......... ...................
other marine life (Section 2, (XI))
'
K J
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T>
f
Compliance with the Coastal Zone Regulations
’
ot currents in the
eou.stul waters lauoons. and .,sr.,afles (Sec,io|, ; ~
i
i
i -
I
of estuaries, crrvl -
‘
I
without recording appropriate rcons (Section li
3
3.1.5
Conclusions / Recommendations
3.1.5.1
The proposed
Ipject involvin
land from the ecological^
iec!amatign_of_25Q ha (Phase I) of
fragile VembanadLlake and estuary would cause
—■ to the hydrological and
aguatic ecosystems, and would
also impair life .support systems of
most vulnerable population in the region
violating the premises
premises and
I££onditions of S„sjainabje Development1
delineated in Section 2 of this
report.
Irreversible dama
o
0
3'1'5'2
S’*
Import b.,tw„Bn V,lnd K„
20
.
I
(
J
3.1.5.3
D
0
The current configuration of the bridges is not environmentally |
sound. The surface transport through a suspension bridge (two way) with
minimal number of piers would be an environmentally viable solution to the
o
o
mainland is a long standing demand of the population on Islands, and has
3
overwhelming support of all sections of the society in Kerala.
|onq standing problems of the islanders. Such linking of islands with the ’
O
3
3-1’G-4
J
' Control
m |||V Lldllk UWl^lkk..
H)'J .L’IIVII‘|IUJI"|||.!| .ippmp.^l
Bouig,
tind
at
tl.-j
Cciilie
(Ministry
of
Er.viro'-rent
and
Fotests)
is
o
lickadriisiciil. The case in point, Goshree Integrated Island Development Plan,
?>
retluctb total lack of regaid to the existing mles, and regulations tonnuluted by the
same Ministry alter years of debate, besides the total absence of sensitivity and
3
willingness for sharing of information with the local population on projects of even
large economic / ecological consequences.
The planning for socio-economic development in the State of
3.1.5.5
?>
Kerala warrants a Carrying Capacity based approach wherein the supportive
capacity
of
the
eco-system
in
the
region,
and
assimilative
capacity
of
environmental media are estimated to facilitate delineation of pieferred seenario
for sustainable socio-economic growth. The preferred scenario would adopt
bottom-up planning paradigm, and would reflect endogenous choices, equity
and social justice, economic efficiency, and ecologic harmony in keeping with
i
the paradiqm of Sustainable Development .
I
I
□
The regional plan, thus prepated, should also provide opeiational directives for
3
1ti<; [>mparation of nia-.tui plans tor eadi uiban/somimban suttlumunt in thu State.
3
Such an endeavour would delineate :
I °
I 3
I 3
I 3
I 3
I
8 0
•
land-use zoning
21
!
1^
I '
•
i
ecologically-hamionious and economicully-etlicient activity typology, and levels of
uacli ui<;livily
I
I *
•
activity zoning
I ”
I ’
•
technological and policy interventions
•
implementation and inonilunng muclianisms.
* I
The regional plan should aim at the following in keeping with the principle of
Sustainable Development:
1
I
•
maximizing equitable quality-of-life for people in the State
•
minimizing ecological loading (natural resource usage) in building regional
economy
•
minimizing environmental-status degradation.
3.2
t
"1000
....... ......
MW Thermal Power Plant Proposed by the Managaiore Power
Company at Nandikur, Karnataka
3.2.1
The Project
3.2.1.1
The Mangalore Power Company proposes to establish a thermal power
plant near village Nandikur in the Dakshina Kannada disliict, State ot Karnataka with
rated c metrical output of 1000 MWs. The proposed unit intends to use low ash (17 “«)
and low sulphur (<0.82 %) imported coal. The construction is scheduled to commence
in 1997, with the plant commissioning in 1999. This Mangalore Power Company
project is in partnership with the Cogentrix, USA and China Light & Power
(International) Limited, Hong Kong.
3.2.1.2
The site proposed for the plant by the Managalore Power Company was
approved by the Government of Karnataka and the Ministry of Environment and
Forests, Government of India to establish a 420 MW coal based thermal power
station by the NTPC in 1992. The site was selected, in 1987, by the Karnataka Power
Corporation based on the availability of the New Mangalore Port for import of coal ano
availability of cooling water from the planned Mulki dam. The proposed site near
w
J
^4^
22
$41 CU)m
J
(
J
o
3
Nandikur is about 35 km from the Mangalore Corporation limits. The site is 3 km to
lhl> wiHilot!her<jhim.huljb vtuhihvi^oniiojjjyi,onmctul Guidclinea for
3
ThermaLPowecPIants.JOBZ. The_distance of nearest plant boundary from the
3
backwaters of Mulki estuary is 300m.
3
3
3.2.2
The Region
3
3.2.2.1
Dakshina Kannada is one of the twenty districts in the State of
3
Karnataka, and is located on the west coast. Geographically, the District is wedged
3
between the Western Ghats to tho oust and the Arabian Sua to thu west. The area ot
3
3
the district is 833, 595 hectares, constituting 4.4% of the total area of the State.
-3
3
3.2 2.2
3
The District is 177 km in length, and is endowed with around 135 km ot
coastline. Thu breadth of thu District varies between 10 km in tho north, to 80 km at
the widest point in thu south.
3.2.2.3
Hie wuutliur in llio logion is hut, and humid for must ot thu year, and the
3
humidity exceeds 85%. The region receives heavy rainfall. Annual average rainfall, in
3
sUolalJLLl^rainy-days per annum, is approximately 4000 mm.
3.2.2.4
2)
Th^g^isjyuli-fprosied and is characterised by nch diversity of flora
and fauna. Five ..major types of forests exist wherein greater variety of plant and
3
a!imaL.specigsj^recom^^
of the Kudremukh National Park.. The
5
?
j.n£l^^na_aciditY_^f^^
'J
forests in the region.
J
regions of the Western Ghats. The District
3.2.2.S
affecting the regeneration of the
The tjeology of the region is dominated by granitic gneiss. These granite
rocks have been laterized forming a vast stretch of laterite soil covering major portion
of the project site area. Thejhreat fo ground water contamination is very high due J
iQj^dLxishncji gcojogical formation and soil conditions.
J
0
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23
>
_ JuJiWU
J
o
0
D
The Soa Board in Dakshina Kannada District lies butwoun 12 27' and
3.2.2.6
13 58 N latitude and 74 35 and 75 49 E longitude. A number of west flowing rivers,
□
□
□
□
-
originating in the Western Ghats, flow through the District into the Arabian Soa. As a
result, a number of estuaries are formed. The most pioducuvc part of the estuaiino
—hi—Ilin—intyrtidilL.mid.JldjaccnJ shallow-watur zoiios. Twelve tamilips of
rn.^hyrnyQS^cgmpnsiijq 22.species, and seven major associations of mangroves with
gfg§§9.§..QndJsrnsM0ccyr in the region. The area is of high coiisQivgtion intpru^f as
1
Ihtffg is wfclynw of IsV^Jl^lLUjVcips, and g pumboi of •pioteclud aieas' toi fish
congg-ryation.exists. It is anticipated that significant pollution problems in the
■si
aquatic
□
□
industnafization in the region is not properly planned and managed in respect
ecosystems
could occur
if
the
planned
and
projected
heavy
of ecological protection , and pollution prevention and abatement measures
3-2.2.?
Marine fishes constitute a major natural resources in Dakshina Kannada
District—and—are—thus_ closely inter-linked
with the
economy
of
the
District.
Environmental degradation of fish habitats through the discharge of sewage arid
industrial effluents, inflow of agricultural chemicals and pesticides through the land
run-off, sediment transport from heavy coastal erosion, and reclamation of mangrove
areas are adversely impacting the fishes, particulaily during the more suaceptibiu
■
2>
■>
7>
7>
0
□
□
□
□
□
□
larval and juvenile stages, through the impairment of their bleeding ai)0 teydinq
grounds.
3.2.2.8
The major economic activities in the region arc agriculture* noniculturo
and fisheries. The region is endowed with rich soeio-cuitural resources.
3.2.2.9
The industrial scenario in the region has transformed after the
establishment of the New Mangalore Port in 1976. At present there are nine large
scale, thirty four medium scale, and approximately 9,000 small scale industries in the
district. If the present rate of industrial growth continues, the gaseous and liquid ’
emission loads would increase by nine and four folds respectively, as per the
d
o
□
0
i "
24
I
•j
r
I J
1 3
I
I J
estimates^ made in the Environment Management Plan for Dakshing Kannada
Dibit let, s»nonbuiod by thu DANIDA.
I
I O
I
I □
. I
I
•
Humid weather, high precipitation, acidity of the soil, and rich horticulture
and forest resource endowment limit the permissible air pollution loads in
the region
•
Geological and soil conditions are prone to ground water contamination
•
If Ulttttiiliyo .• !2L) piolu'-ltlL’ll “I c od I-kt I •i.ivl tjc-lLKtl 11
tcunjttti that support
breeding and nursery grounds for fish and other marine life
«
I
Fisheries,
horticulture
and aaticulture
constitute
the main economic
activities besides the tertiary sector
I
•
I
Region is endowed with very rich socio cuilooi! iHld aesthetic iosquicu;*.
’
I i:
I '
1 -
3.2.3
Project Appraisal Process
3.2.3.1
Sequence of Events
•
Application tor the consent for establishment was made by the MFC to the KSPCB
on June 8, 1995
•
Thu MFC submitted a Rapid EIA report to MuEF alongwith Techno-econonuc
Feasibility Report on Juno 21, 1995
•
1-
K
Delhi on July 20, 1995
•
1°
site on July 22, 1995
•
13
13
13
13
I3
I J
A team of technical experts alongwith the Chairman and Member Secretary of the
KSPCB, and other concerned officers of the Government of Karnataka visited the
4.
p
1?
A technical presentation was made to the Expert Committee (T) of the MoEF at
A Public hearing was arranged during the site visit at Mangalore on July 22, 1995
wherein apprehensions on possible environmental impact of the project were
expressed by the public
25
i
i J
■I
•
I *
The Department of Forest, Ecology and Environment, Government of Karnataka,
(iiio'igh its Lnviiuiimunt Goiniiiiltuu
{ 3
examined the project proposal
□
o
.
0
3
The KSPCB issued condTonalNOC to the proposed site from water, air and solid
waste management point of view on July 25, 1995
.
3
J
.7
i m a spuciel niuulinj held on July 25, 1995
Observations ol tho Export Committee (T) ol MbEF were communicated to the
MFC on August , I. ,g05:
,hoio o|xjo|Vil|io,|B
,usponso
wj
by the-MFC to MoEF on Ducumbur 4, 1905
•
Another looliniGal prosentr.lion was made to the I.Apuit Commiltou ot the MuLl- by
J
the MPC at Delhi on l-cbiua.y 19. 1996. I he additional mtomiution sought by tho
0
MoEF in this meeting was furnished by the MPC on February 27, 1996
•
to the project on June 11, i996.
IheJvloEF^crorded^jdition^
1
The conditional NOC of the Karnataka State Pollution Control Board
3.2.3.2
stated that, after the Environmental Clearance is issued by the Government of
Karnataka and Government ol India, the KSPCB will consider the issue of Consent for
Establishment. This NOC was issued by the KSPCB subject to the public healing that
was scheduled on August 12, 1995. TliirQiearinahas n^Uaken ^20 till date.
3.2.3.3
The major environmental issues that warranted addressal in the EIA of
0
this thermal power project are the propose^odemxLimpact of coal transport: coal
□
aLplanLsit^impact^Hlue^as eini^n^bi^^ Wlth special
——f-Sll£eJo_sensitjvej^^]or^
•>
of cooling waters: flvash
£ll^P0val/utili^atiojLdjJan2_ancLlQ^oll!c^cnt_-and rehabililMQ.,1 Plan tor the displaced
W-ulaJipn ■
y
7
Apropos the coal transportation, the Hapid EIA conducted by the
0
3.2.3.4
3
proponent considers two options, viz. transportation cd coal through the ocean vessels
?
to the New Mangalore Port, unloading onto rail cars, and transportation by rail to the
)
site through Merry Go Round loop on the Konkan railway; or through a to-be-construct
>
captive port near the plant. !n_eithe!_casexJhe environmental impacts were not
■>
!>
I»
26
i
I
I I
assessed. Also, the proposed coal slocking arrangements and estimates on the
I 3
f
been delineated by the MPG in its Rapid EIA report
I J
I
1 0
3.2.3.5
meeting the water requirements al the power plant, viz. fresh water cooling towers
1 *
w,lh sea water desalination plant to augment the water supply, and sea water cooling
I ~
towers With sea water make-up. to the case gl the termer, the use of water Irnm the
1 3
f
I
I
P
I'’
*
I
,|UV|> nn,
amount of qo.,1 |i, I,., O|o,,,,|. i,, Vi,,w ,,(
Apropos the water, the Rapid EIA report considers two alternatives tor
Mplki dam was proposed. The competing demands for waler, however, have not been
emnaled. |n Both cases, the details of intake stmmires such as the location, desinn
and impacts on aquatic ecology have not been assessed
The MoEF in the
environmental clearance included a condition that only sea water will be used in the
plant, the sweet water requirement will be met through desalination of sea water, and
that do water wdl be drawn from the Muhu nver.
1 •
3.2.3.6
A township is proposed Io bo dovolopod tor aceomodaling SOOO
poisons. Howovor. immoraiied p,an ior tlte s^
wae>
management lacilitios, has not boon prepared
3.2.3.7
■ ne Air quality modolling exorcist) carried out by tlio MFC consultants
using ISC 2 model Indicates that the maximum 98» percentile 24 hourly ambient air
concentrations ol SO2 and NO. win bo 12.6 and 16.2 pg/n? respectively at the
1=
Western Ghats due to the MFC's Thermal Power Riant considering Hue Gar
!?
Desulphurisation (PGO, _i!n„ ,n operato. The air quality modenmg exerose
I L-
Mangalore region (proposed sources indude Mangalore Power Company with FGD
i
incorporating the extsltng and the proposed major industrial point sources (only) of
L°
untt. MRPL-Expansion. JESCO's 1000 MW Thermal Power Plant and JESCO's steel
L?
standard of CPCB for sensitive areas at the Western Ghat.
15
15
i5
plant) indicates that SO, concentration (30.6 un/ir,1) will exceed the stipulated
27
^.'Sjayrnj'
I
3.2.3.8
using
The Air quality modelling exercise carried out by the MPC consultants
numerical model,
Fluidyn-PANACHE,
indicates
that
the
maximum 98lh
percentile 24 hourly ambient air concentrations of SO? and NO* will be 54.0 and 69.4 1 <.*
f. • J |
UQ/mJ respectively duo, to the MPC’s thermal power pl‘ ant considering
’
FGD unit in
I
2P^_r£Align. The__SQ2. and NQX concentrations will thus exceed the stipulated cr " J
------------------------------ JhiiJ
Standards of CPCB tor residcntjal/rura.l areas considering (he existing and
PLPPOkgd major industrial point source^ (only in Mangalore region)
The hazards due to the coal storage arid handling, boiler and furnace oil 1
3.2.3.9
storage have not boon analysed, and tho consequent Disater Management and
^ricrqcricy^rc-i)arc-dn(;ss Plans have not been included in the Rapid EIA re-port/
prepared by tho MPC .
3.2.4
Environmental Viability of the Project
3.2.4.1
The rich aquatic resources in the Mulki estuary and the impacted coastal
regions (Exhibits 6&7) would be impaired by the proposed Jetty / Wharf operations
and run-offs from the coal and ash storages. This would effect the fisheries potential,’
and thus the livelihood of vulnerable sections of the population in the region violating
the_premises of Sustainable Development delineated in Section 2 of this report.
3-2.4.2
In view of higher acidity in soil, that limits the regeneration of vegetation
in evergreen rain forests in the Western Ghats warranting urgent protection and
rejuvenation, lhe_24_hgur!Y and annual average ambient air concentrations for SO^
£l!£iUl£j hV.litn.llgd.lo 20 and 10 i.ig/m3 rcspoctiygly. Tho MFC's prodictions witli the
existing and proposed major industrial point sources (only in Mangalore region)
indicate the following ambient air concentrations at the Western Ghats :
>
t
. - -- -pUU'
-
rT>’
4
i ■
ii
28
!
4
.
;
:iv .
,VU.' • •
SaME
i
Shi
m
t
J
il
I .0
II £ *
Il -1
li J
B
I
. W'l'l
so?
-x
uJ
B
£ 3
£
I
Annual .ivui.uji;
concei ilndion.
lluidynI'ANAI 11|
ISC 2
I luidyn
I’ANACI II
|__
180 2
26.5
30.6
not
carried out
6.7
(wilh FGD in MPCb
Ihurinal power pl.ml)
II II
u JJ
M.ixmiuni 'JBu> poiciynlilu
2*1 houily cunt unli.ilion,
P'lhlHlduf
IkoJiraLid wcL.deuos!lioii rales in the legion are liigli duo to meteorological
conditions particularly because of high humidity and precipitation. The proposed
protect, even with the installation of Flue Gas Desulphurisation unit with 70% SO?
removal efficiency, is environmentally unviable due to the aforementioned reasons.
3.2.4.3
The coal and ash storages have high potential of contamination of
ground water.
1
I
8
3.2.4.4
IhcjictLhorlicultural resources would also be impaired due to gaseous
emissions and potential surface run-offs from the coai and
4
4
• 4 "
4 Z)
4
3.2.4.5
TIhj
sh storage areas.
conducted by thu Ni L Hi loan:, duiuiy iU inspucliun in
November 1996, on food web indicate the instability of ecological pyramid in
Mdliua.l'/iv coa.ylel w.dm (l>!uhiLU) aid.llio chIjcuI loje ulayod by (|H, bunthos (hat
D
inhabit.bottom sediments. The potential run-offs from the coal and ash storage areas.
F4 ’
4
?nd duxlrjing and .Pijerational activities on Jetty would udveisely impact the bottom
4?
4’
4
4 J
4 '
I D
sedimei jts,. biomass of benthos, and the stability of the already unstable ecological
pyramid.
3.2.4.6
The proposed pioiect is not based on endogenous choices of the
contiguous, population. The local population envisions this development as an
aberration to the existing harmonious balance of ecology and economy in the region.
.1 -
ini
31
.i
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< .A
I
3.2.4.7
Compliance with Coastal Zone Regulations
I.ho.Power PlanLby. the Manqaloro Powor Company
at Nandikur village violates the Coastal Zone Regulations (MoEF, February 1991) in
0
the tcllowiixi aspects :
Thu npwrust industrial plant promises arc al a distance ot 300 m Irom tho Mulki
•
estuary backwaters (violation of Section 2(i))
The enwronmental clearance for the construction and operation of Wharf and Jetty
•
at Padrubidrj, aiid the intake of sea water and tho discharge ot wastovyator has pot
?
J
J
3
yet been sought by the MPC (violation of Section 2 (ii, iii and iv)).
3.2.5
Conclusions
3.2.5.1
In view of tho heavy rains for four months, tho storage structures that
could totally prevent the coal and flyash overflows to the agricultural lands, and the
Mulki estuary have not been proposed by the MPC.
3.2.5.2
While the MPC has recorded plans to utilize, flyash through the
establishment of a separate company, India Ash Products Limited, and MoEF has
imposed, in the environmental clearance letter, a condition on the MPC to utilize 190
% of the flyash by the ninth year, provision tor landmass has been made for 25 years
storage of flyash at the site. The land requirement for flyash ponds has thus been
estimated as 581 acres, i.e. 51.7 % of tho total land requirement for the project. Also,
«3
D
details such as the proposed location, capital investment, marketing strategy etc, are
not available on the India Ash Products Limited.
3.2.5.3
In order to moot the land requirement of NTPC’s thermal power project
in 1990 around 2800 acres of land was identified for the purpose of acquisition. The
d
land requirement for the MPC plant has been estimated as 1124 acres. The excess
land has not been denotitied bv the State Government.
0
i
O
33
13
13
r
A
o*<
3.2.5.4
The Government of Karnataka, in July 1995, asked the MPC to decide
the location of treated effluent disposal point in consultation of the NIO. The NIQ was
contacted by the MPC on November 14, 1996 (after the current order of the
Hon’ble Supreme Court in the matter). The response from the NIC on the issue
was not available till the submission of this report. Fuither,iu TOR for the NIQ
study do not include selection of the sea water intake location, and the assessment of
Unpagh on aquatic ecosystem duo Jo tho inph?
W^tef AUld..
.Qi
wastewater.
3
3
J
3.2.5.5
As per the Rapid EIA report of June 1994 of MPC, for which the socio
economic data for tho assessment of impacts of the project on affected population
»
was collected in 1991, around 536 families (4700 persons) will be displaced due to
the project. The proposed project would generate employment for 3500 persons
during its construction phase, and for 500 persons during the operation phase. The
LlUlJlhca (_>! .jlljn.p.ul I.Hjidigs lias Heun mjjoihjd by the.MPC as ?39 in tho piopgsed
Resettlement and I Rehabilitation Action P la n i n October 1996. The i e a s o n s for this
change in the number of project affected families as compared to the Rapid EIA
report (536 families) has not been recorded by the MPC. No primary survey has so far
been conducted by the MPC / its consultants on this vital issue that decides the
resettlement and- rehabilitation packages.
3.2.5.6
Nolwilliblaiidiiiy lliu major agiiculluie / cultivation landust) in the
affected villages, 7.5 % of the total workers in the affected villages earn their
livelihood thiough fishing. No plans have been prepaied by the MPC to generate
employment avenues to the ppoplo who would be without the moans of livelihood due
to the project.
!
J
J
3.2.5.7
The development of transmission corridor has been stated by the MPC.
J
in its Rapid EIA report, as the responsibility of the Karnataka State Electricity Board.
□
1 3
No EIA for the transmission lines has been carried out. Thu power evacuation plan is
I 0
t J
I/"
also no} yet delineated.
\
34
i
i
•
I
3.2.5.8
In .lhe_ahsonoo pl inlonnntion on dolinilp pU,5
...................... .
na^m^o
MwoUPMot. aM fly usli u,,,^,,,..,,,
«■*» ««!
ILshould have Poon dillicl, m, the MoEFIojsssess lhe oneironmenlal imnants of th,.
J
proposed project.................................................................................................................. '
~
3
TheMoEF; as per the provisions-jn EIA Nolltotion, May 1994 (Section
Ma
21,b); should not have considered the project for appraisal without the ’
3
comprehensive intorn.ation on the pro,co,
J
3
,ns,ead. ,he MoEF has ch|_n
grant the conditional clearance to the project.
3
3
3
x - .3
ZmPC3"8 7raUnded
in an
assessment .,v
a9,iCU'“Jr“l 'ant,'
!!!SL-a££^^^
evaluation proposals
impact of coal transport facilities
-----not assessed
3.2.5.10
P-------
in
,
j$ proposed to be toe;
sppraisal Om,-ess In thn mn..appraisal Pr°^ess "I" ehMed population end the enveonmentally awa-e ci,izens
were HQ i id ken into confidence
af0Mh in ,h|s
potential, need he
~ cpanmcnt 01 For”l Froloqy and Fnyironmenl had invited proposals ,n
7
me u mg NEEBJ. Iheenvironmental appraisal for this oronnsod 00wer oroiM anrt ,hp
B^B^^ri£jdUstrial_prpjeets_shoyjdJ|avg_been_carrieiXput_based on resatts o, ,he tobe-conducted carrying_capacity study in the region
3.2.5.12
The planninci for socio-economic devol
warrants a Carrying Capacity based analysis, vjz
3b
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e**r-
onm'lULthe Ulate of Karnataka
support.ive capacity of ecosystem
'xjuy > zt i
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a.n.d < i s si it] ij a live, capac ilY_pf environmental n ledia. Such an exercise would lead to the
ilellll^lion .of. .prolorrud_scar|ario_Jor_sustaiiiabju
I
o
socio economic giowth. The
preferred scenario would adopt bottom-up planning paradigm, and would reflect
fendbgonous .choices, equity and social tustice, economic efficiency, and ecologic
I
J
tEj£n»QJl¥_in Keopih.q willi the paradigm of Sustainable Development.
D
. 3
T.hc..rggional plar^ so prepared, should also provide operational directives for
3
- *)
lbo_I2I9py!21ii£?Q..2t.4QL.pltlQS .fQLcach^uibjin/sginimrlxu]. sottlomonts in the area
3
3
SULl) •Jll <JII<JvdyoiH would.dnli.iio._im ;
3
•
land use zoning
•
ecologically-harmonious and economically-efficient activity typology, and
levels of each activity
•
activity zoning
•
technological and policy interventions
•
implementation and monitoring mechanisms.
*1
w
0
The regional plan should aim at:
•
maximizing equitable guaiity-of-life for people in the State
•
minimizing ecological loading (natural resource usage) in buikiing regional
economy
.0
0
•
minimizing environmental-status degradation.
3.3
:2,00,000 TPA Paper Industry Proposed by of M/S Sinar Mas Pulp and
Paper (India) Ltd near Bhigwan, Pune District, Maharashtra
T
T
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D
3.3.1
The Project
3.3.1.1
M/S Sinar Mas Pulp and Paper (India) Ltd (SMPPIL), a wholly ownud
company of M/t> timur Mac Group, Indonesia owns the largest integrated pulp and
■ paper industry with a production of 1.2 million TPA paper and 0.6 million TPA surplus
pulp. The company proposes to establish an industry near Bhigwan village of Indapur
taluka in Pune district of Maharashtra. State to produce 2,00,000 TPA of paper and
board using bleached pulp imported from Indonesia.
?
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3.3.1.2
I
The civil works for the unit are nearing completion. Most of tho
machinery for the project is already erected, and the balance is available at the
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industrial site.
3.3.1.3
The proposed industry would use 7.57 MCM/year of water drawn from
the impoundaqe of Lljjani dam. Intake pipline from the source of water in Ujjani dam
upto the project site has been laid.
3.3.1.4
The proposed industry requires 40 MW of electricity at peak production.
The Maharashtra Slate Electricity Board has agreed to supply 20 MW power from the
i
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weslurn region grid. Laying of transmission linos toi thu same is in progress. The
induslry propose:. Io o’.1;«hh;.h a coal h.iso<| ca.plivo thermal POWQl Pidht ..y! J3Q
I
I
capacity for which permission has been accorded by the Central Electricity Authority.
I
The Region
1
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3.3.2.1
The site proposed tor the industry is at latitude 18°15’N and longitude
74°45’E sprawling over 365 hectares. The land acquired for the industry includes
parts of Bhadalwadi, Paundawadi and Bhigwan villages in Pune district. The region
has been classified as class C industrial area by the Maharashtra Industrial
Development Corporation (MIDC), the agency which has provided land to the
i
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A
proposed industry. The access to the project site is from the national highway, NH #9,
connecting Pune and Solapur. The nearest railway station is 6 km away at Bhigwan,
and the nearest airport 105 km away at Pune.
3.3.2.2
The project site comprises two stretches of land lying on either side of
NH #9. One of the stretches measuring 205 hectares, most of which is a plateau, is
i I -
acquired on the western side of NH //9, and the other measuring 130 hectares is on
I ’
the east of NH #9. It is proposed to locate the paper industry on the western, and the
I I I L1 1-
township on the eastern side, hi addition, 30 hectarus pf land has been acquired near
I 0
L'
ULUUY/.d-O railway slalioii for handling aiid storage of coal tor the captive power plant.
37
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3.3.2.3
The geology of the region is basaltic flows of deccan trap, and is
traversed with delcrile dykes. The region is rural and sparsely populated. Nearly 85%
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of the area is cultivable with only 30% of the area being irrigated due to the
.oj-w*!!cC Majoi crops grown in the rogion uro sugarcane, jowar, onion and
green vegetables.
3.3.2.4
i
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Nira rivur has gopd vegetative cover.
The proposed treated wastewater discharge is in an open drain which
subsequently joins the Nira river (Exhibit 10).
3.3.3
Project Appraisal Process
3.3.3.1
Ttiu Maharashtra Pollution Contiui Board tssuoc the
CbtuLlibh
i
The rogion is a constituent of Bhima river basin. The landmass with
good capability for agriculture has sparse vegetation (Exhibit 9). The watershed of
3.3.2.S
J
—
to
to 8MPPIL on September 26, 1994. The Irrigation Department of the
Government of Maharashtra permitted the withdraw! of 7.57 million cum per year
water from the Ujjani reservoir to SMPPiL vide ns tetter of Fenruary 1, 1995 The
i
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i
Ministry of Environment and Forests accorded conditional environmental clearance,
based on Rapid EIA report, on April 27, 1995. in wew <4 the represens^rai to the
MPCB and MoEF by the local people about the water scarcity in the region, the^MoEF
revoked the cluaiunco on Juno 16, 1995. At the instance of MoEF, a new sanction
was obtained by the proponent from the Irrigation Department on June 7, 1996 for the
4
I
withdrawal
J
environmental clearance to the project on August 5 1996.
of
water from Ujjani dam. The
MoEF
reinstated the conditional
t
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3.3.3.2
The project proponent has not subrrutied any comprehensive EIA, and
fisk assessment study to the State Department of Environment or to the MoEF on the
project.
i
4.
.1
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c
<77^ A
2
38
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3.3.3.3
** J
Tho h.i/.uds duo tn coal j;lnmgg and handling, boiler oporatjons ajuj
JI.iud_anulysis jgijliujjrgpanitigi£ of Jfeash-i. M.iruigurnont and
□
ip
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and Emergency Preparedness Plans.
3.3.4
Environmental Viability of the Project
3.3.4.1
The industry is proposed to be located at a distance of six km from the li
Ujjani Dam backwaters. The dam is a vital source of drinking water and irrigation for i
nearby villages.
fctjv
3
3
3.3.4.2
3
.Department, Government of Maharashtra to the MoEF, (he total water used for
Based on the data supplied on June 7, 1996 by the Irrigation
drblKipHi irrigation and industrial usages (including evaporation) during 1992-95
waS-fp.f jn excess of the design live storage of the U;jani reservior (116 to 139%).
I
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**
J
3.3.4.3
Tfio intake of water by tho industiy horn the Ujjani dam is estimated to
be 25,000 cum/day. The wastewater generation would be 22,000 cum/day. The
wastewater treatment plant has been designed to achieve Suspended Solids of 5
D
mg/l, BOD of 5 mg/l and COD of 90 mg/l in the treated effluent.
2.
3.3.4.4
D
O
□
D
Treated wastewater is pioposed to be disposed off by the industry
through a 12 km long pipeline into a natural drainage channel which meets river Nira
after traversing another 12 km. As the flow in the nallah/river Nira is not perennial, the
change in ecology of the nalla/river Nira is a major concern in this water scarce
region.
3.3.4.5
The industry has not proposed any measures, in its Rapid EIA
report, on the reduction in the quantity of wastewater, and its recycle/reuse.
3.3.4.6
Solid v/.istes management plan proposed by the industry has not
been evaluated by the Maharashtra Pollution Control Board apropos the
41
'jJcum I
Hazardous
Waste
Management
and
Rules,
Handling
1989
under
the
Environment Protection Actf 1986. Also, no concrete plans have been submitted
either to the Maharashtra Pollution Control Board or to the MoEF on {lyash
j
utilization.
j
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3.3.5
Conclusions
3.3.5.1
In view of the current over exploitation of the live storage of the
Uuaiii
reservoir, even without ttie proposed industry, any water intensive
industry is not environmentally viable in the region.
3
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□
3.3.5.2
JJenvironmental uppraisal piocess undeiesliinated the critical issue of
water scarcity >n lim region, as also the violation of tlk.> pnontizatiun for water resource
3
aliocation, ourlmed in the National Water Policy, 1987. The sequence of events
3
uivMvtf ig a*^ unlii.ij, invoking and f<Kd.itnig of onyiioiinignLd cltMiuncus indicates
J
lack
^3
environmental appraisal in the Country.
of
33.5.3
objectivity and transparency
in
the very
piocess
and
institution
of
in view or the scarce water resources, good Land capabihiy, and
D
mitrcprcncuiiai farming coTnmunrty; the socio-economic duveiopincnt in this region
3
needs to be based on an objective trade-off amongst conflicting demands on the
3
limiting resource of water based on tho promises ol sustainable development
3
3
. I
3.3.5.4
3
The planning for socio-economic development in the region warrants a
carrying capacity based assessment. Such an exercise would require estimation of
3
supportive capacity of resources in the region, and assimilative capacity of
environmental media to facilitate delineation of preferred scenario for sustainable
: i °
socio-economic growth. The preferred scenario would adopt bottom-up piu.
: i 0
: i °
paradigm, and would reflect endogenous choices, equity and social justice, economic
ofliciuncy and Geologic harmony in keeping with tho pamdigm of sustainable
development.
5 I □
•
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>AJiUJrn i
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3
42
0
CJM--
(
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The pioposed regional plan, thus prepared, would delineate :
I f
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ri
3
i D
•
land use zoning
•
ecologically-harmonious and economically-etficient activity typology, and
levels of each activity
•
activity zoning
•
technological and policy interventions
•
implementation and monitoring mechanisms.
The regional plan should aim at:
•
maximizing equitable quality-of-life for people in the region
•
minimizing ecological loading (natural resource usage) in building regional
K
economy
I’
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i
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4’,
't
•
minimizing environmental-status degradation.
3.4
Bandra - Kurla Complex, Mumbai, Maharashtra
3.4J
The Project
3.4.1.1
The regional Plan of Mumbai Metropolitan Region, 1973 recommended
planning and development of alternate growth centers in order to ease the pressure of
residential,
coiiiiiioigiuI
and mdustiial activities on aiioady luiiy developed south
Mumbai. One of those growth centers, identified by the Mumbai Metropolitan Region
Development Autlioiily (MMRDA), was bundle Kuilu Complex (UKC). Thu complex
includes a series of buildings, north of Mithi river, to accommodate residential,
I 1
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commercial, as also institutional activities.
3.4.1.2
The planning proposal for BKC identified various areas, aggregating 430
■ ha, as the development area, out of which 370 ha was treated as the Direct Action
I -
Area. According to the MMRDA plan for BKC, 283 ha of land under Direct Action Area
L’
needed reclamation from intertidal zone of Mahim Bay for development.
I I Z
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The BKC area comes under the jurisdiction of the Mumbai Metropolitan Region
Development Authority. Till 1968, the urban built up area of Bombay Metropolitan
J.
43
)
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Reg,on was conlined !o 235 sq km in Greater Bombay, and accommodated a
1f
population ol around 1,0 lakhs. Since Uro population rtn.wth in Um nryiun |>;„| sljrt„d
1
steeping up from 1950s, alternate growth centers to ease the pressure on the already
I
Z)
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!
facilitate the planning and development of
I
Maharashtra through a notification (BKR-1177/266-UD-5, March 7, 1977) appointed
'I 3
MMRDA, the then BMRDA, as the special planning authority for the area under
j
crowds J Island city were envisaged. One of the growth cantors so iduntifiud in
Mumbai Metropolitan Regional Plan, 1973 was Bandra - Kurla Complex. In order to
the complex, the Government of
Suction 40(1)(c) of the Maharashtra Regional and Town Planning Act, 1966 (MRTP
D
0
Act 1966). The notified area, initially comprising 1269 ha of land, however, was
J
reduced to 630 ha by a subsequent Notification (BKR 1177/262 UD-5 dated May
1979).
>
3.4.1.3
i
i
D
The Bandra - Kurla Complex is divided into nine blocks, viz. blocks ‘A’ to
I. The block 'A' facing the Mahim Bay was earmarked as residential
I
i 2
zone. Blocks ‘E1
and 'G' were proposed as the piimo locus of the commcicial activity in BKC. It was
envisaged that ‘E‘ Block would be developed for public and private offices, and G’
t
i
block for relocation of textile mills located in south Mumbai and for other commercial
3
uses. The 'B', G’ and ‘D’ blocks; where the land is owned by various organizations
3
like
the
Maharashtra
Housing
and
Area
Development
Authority
(MHADA).
Bnlianrnumbai Municipal Corporation (BMC), and Railways; were demarcated for
commercial use. In 'H' block, about 15 lia of land
was proposed for development of a
Natural park, and the rest for commercial and residential use. The block ‘F’ was
demarcated for institutional usage.
Z)
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1 -4
‘ L°
L?
L°
P
I?
I
QuLQL37^ha.of land identified as the Direct Action Area, 283 ha was
not readilyjjsable, as this area constituted mainly of wetlands or low lying areas, at
?
the inception of thejjrgject. In the 1980s, the MMRDA could develop only 19 ha of
land in ‘E’ block, where a number of public and private office buildings and some
residential buildings have been built. Tire remaining aiea was lying untouched, due to
its inaccessibility, till ] 9!J0 wlien the construction of a bridge over Vakola nallah was
44
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J , ..xrjoj n ) i
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B J
k
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3
B JJ
X J
k
I
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completed. Around 169 ha of land in 'G* block has been reclaimed from the wetlands
and marshy areas since then.
To tackle the problem of channelisation of the Mithi river, the MMRDA retained
the Central Water and Power Research Station (CWPRS), Khadakwasla for advice.
The CWPRS, after conducting hydraulic modelling studios and examining several pre
conditions for carrying out the development of surrounding area, recommended the
following:
•
excavation and widening of the channel to 200m width upto the biidgo on
Dhaiuvi-LJundra link road, and bOin width liom Dliuruvi blldgo to Mahim
causeway
•
provision ol sluice gate structure near the Mahim causeway
.
trimming of excessively filled refuge dump near ‘H’ block adjoining Mithi river
3
bank
r
•
strengthening of bridge across the Mahim creek
i ~
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•
construction of protective bunds along the channel, and the protective pitching
j “
and repairs of existing diainagu along the LBS Marg.
3.4.1.5
The planning proposal estimates that, when fully developed, the BKC
would accommodate about 1 lakh population and 1.27 Igkh jobs. Taking note of the
traffic implications arising out of this development, the planning proposal has
suggested suitable increase in the capacity of existing roads, construction of new road
i:
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network, and provision of a bus depot, bus stations, railway station, and paiking
spaces. The fully developed BKC would attract a substantial number of visitors every
day whicti would add on to the infrastructural prossuiu in the legion.
3.4.2
The Region
3.4.2.1
The'Mumbai Muliopolitan Region has a 167 km coastline characterized
with creeks, estuaries and bays. While the seafront consists grossly of sandy
beaches, exposed rocks and cliffs; the area along the creeks are constituted by
wetlane.s, mudflats:
marshes,
mangroves and salt pans. These areas
45
? I
have
undergone extensive change over the past few decades on account of land
reclamation and other anthropogenic pressures.
According to the Draft Regional Plan for the Bdmbay Metropolitan Region 1996
- 2001 published by the MMRDA in 1995, the present area under coastal wetlands
and gigyiHr. is pjtimatgd as 358 sq kin, winch is Bu.i. ot the total aiga^ot BMR. Tliq
area under wetlands, Ilowuvcr, would shiink to 69 sq kmt i o. 2°o ot the total area, as
per the J 2 rgj js ud Jar id use plan. An unsatisfactory explanatioi i tor the reduction in the
wetland area is provided in the Plan.
[•3
I ~
during monsoon, and the discharges from various nallahs joins Mahim bay through
)
I
Mithi river mainly carries overflow discharges of Vihar and Powai lakes
3.4.2.2
■>
the Mahim creek. The .riparian area of the river is characterized predominantly by the
1
wetlands and mangrove forests.
i
3.4.2.3
4
ajc-a of about 183 h.i. Of .this, aioiind _16? ha js thick nuingiove toiest, which _is
III';
iI.hi'I'. .dong tin: Milhi nvfi mid M.ihini rn t k pig-a ntly cc/vu an
estinlatcd to contain about 12 lakhs mangrove plants belonging to six different
5 ic:,, the d < >min m i_t ap ec i os being
men AI bn w I hc h cai t_ grow upto a nc.gl d ot
12 meters.
3
3.4.2.4
Mauyiovu ecosystem is a complex system comprising a variety of flora,
l
invertebrate and vertebrate fauna, micro-organisms and the interacting abiotic
L
chemical and physical constituents of the rnuddy deposits. Mangrove eco-system is
I
□
highly productive, and its bioproductivity is comparable to that of the rain forests. The
plants are characterized by their common ability to thrive along sheltered, inter-tidal
i.
J.
coastlines on sediments that are saline, often anaerobic and sometimes acidic.
□
The ecological functions of mangrove forests and their value as renewable
supplims of goods and services are grossly undergstimated. Mangroves with their
4
unique characteristics, act as a ‘biological filter* or protective barrier preventing direct
entry of wastes into the receiving waters. Mangroves reduce coastal erosion, stabilize
L ~
1 ?
estuarine flood plains, nutrients from mangroves form the food base of many marine
I *
4b
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M 4, ,*1 I . Ji,
)
AjJuu/rn i
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and fresh water organisms, and the branches and aerial roots of mangroves at the
i:
kc.ihont >«jfv<j a*; habitat to many a marine fauna
i
i □
i
i
functions as a breeding ground tor various aquatic fauna. Its unique topographical
3 -
3.4.2.5
fho mangiovo
features help the wet kind ecosystem to act as a flood attenuation system, thereby
reducing the impacts of flooding on the terrestrial environment.
i r□
The Mahim bay at present receives around 146 million cubic meters of
I J
untreated sewage per annum from the adjoining areas through the Mithi river, Vakola
* ?
nallah, and Mahim creek.
This, along with the diffused sources of wastewater
discharges, mainly from the adjoining slums, deteriorates the water quality in the bay.
j
I D
One lakh potential residents of the BKC, along with the 1.5 lakh nonresident
4I
population, would generate over 10 million cubic meter of sewage per annum which
would tuither add to the critical pollution levels in the Mahim bay.
u
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3.4.2.6
I
I
river due to the blockage on the river created by the temporary budge* made up
N-EI HI luam in its study in Mitlii liver basin, in November 1b96.
obseived that the Dissolved Oxygen (DO) levels in Mithi liver aie in the range ot 1-3
.mg.l during high tide which reduce to zero, creating slinking anaerobic coriditioris.
during the low tide periods. On analysing the salinity values for different locati'ans. it
was observed that the tidal influence from the Mahim bay does not reach Mithi
of hume pipes.
3.4.2.7
h
Thu uruu undur mungrovcs in this aiua has shrunk during the past k>w
decades due to the reclamation of wetlands, pollution in the creek, construction
k '
activity, and indisciuninalu cutUng of munyiovus by Ukj inbuduis. The MMKDA in
I '
collaboration with the Worldwide Fund for Nature (WWF), in 1987, initiated a
I?
programme to plant new mangroves in 12 ha of denuded wetlands.
i.5>
L?
3.4.2.8
Anticipating the problems involved in the protection of mangrove areas
and preventing possible diversions of these areas for other purposes, an area of over
H “
170 ha, including the area under the Mahim Nature Park, has boon declared as a
M 0
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47
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« s
f
Vi~--
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Proiccied Forest by a notification (No. FLD 1190/1048/CR-116/F3 of
■J
March 16,
1991) issued by the Itovunuc and Forest Dupailincnt, Govuininont of Maliaiaslitia
under the provisions of tho Indian Forest Act, 1927. I he notification, however, penmts
J
actLY.iiies.and w/orks already undertaken and_in_prgjress.or to he undertaken by the
J
13MC and PWD. lhe above notification did not have
SlalnKd^LbodiciLlikC-
J
aHY..si.qnificant impact on the ongoing destruction of wetlands in the area, since
the_.developinent activities have been continuing even after the notification
J-
came into effect.
J
I
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□
3.4.3
Project Appraisal Process
J
3.4.3.1
Nq environmental appraisal has yet been carried out for the project LH
by the MMRDA, noLsought by the Government of Maharashtra / Ministry of
Environment and Forests.
Thu .cvypf!^ |!h Its study on the chaniuilisalioii of Milhi iiyoi; [bis.failed..lq
J
addious;
J
J
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I
the ucolo(ji(tul impacts of channelisation ol the liver and subsequent act ot
>
reclamation of wetlands
w
?
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tlie sensitivity of the mangrove species to the changes in salinity gcadient
due to chanhelisation.
ELdhL!£.Iim!!y.lecomnu^ndations, like the trimming of the refuse dump near ‘H1
> •
?
)
block artd construction of bunds and sluico gates actoss the rivug ansipq out of the
■
limited study by the CWPRS completed in September 1996, are yet to be
implenlentcd by tho MMAT)A.
□
3.4.3.2
A comparison of classified satellite imageries for the years 1994
J
and 1996 (Exhibit 11) reveals that over 100 ha of wetlands was reclaimed at the
3
site of the proposed ‘G’ block during that period.
♦
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3.4.4
Environmental Viability of the Project
3.4.4.1
The implications of the BKC protect on the wetlands, mangrove
forests and the aquatic environment are delineated hereunder:
•
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has been reclaimed for the development
•
o
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a total of 283 ha of wetlands / mangiovu forests / low lying marshy landmass
out of this area, an aiua of over 100 ha covoiing wetlands and mangiovu
forests, falling under the ‘G’ block, was cleared for the development of the
International Finance and Business Center dining 1994 - 96
J
•
o
y
indiscriminate to well planned dumping of solid waste in the area was practiced
since 1980 to reclaim the wetlands
•
y
reclamation of wetlands / low lying marshy lands along the river Mill'd in the
process of dredging the river
an aoditronal load of around 10 MCM ot sewage per annum wiii oe conlnbuted
•
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duo to the additional population atliaclud to thu lugion due to the piojuct into
already grossly polluted Mahim bay.
Though the MMRDA has adopted certain piecemeal strategies to preserve
mangrove turests ni the region, the damage alic-ady done to me mangrove forests
through the reclamation ot land, and the lack ot an integrated approach to the
management of
.1 □o
“ > I
□
the wetland ecosystem has put the region's ecological wealth
towards the path of irreversible ecological damage.
3.4.4The reclamation of wetlands and dostiaction of mangrove swamps
would increase _tihj jjossibility of flogging along tl»e Mithi rivet and sunoundtnq ureas
LI'"
of Malum bay.
■ I ’
: i5
S.4.4.3
1P
The studies on food web and biological productivity in the region
indicate the instability of ecological pyramid (Exhibit 12). Destruction of mangroves,
and removal of bottom sediments by dredging during land reclamation would
-
adversely affect me'obenthos concentration. This would concomitantly affect the
1
I p
IP
: i^
U
50
YD i
I
I ’
I *
bioproductivity ot the ecosystem, and the ecological recovery, if at all possible,
I ’
gould t;ike a few decades.
I
I 0
I J
4 J
*1 □
I □
3.4.4.4
The ‘G’ block in Bandra -Kurla complex is within the intertidal zone
as per the high water and low water lines demarcated in 1990 by the National
Remote Sensing Agency (Exhibit 13) retained by the MMRDA.
J
I 3
Existence of
mangrove vegetation, as late as in 1994, confirms this fact. The construction of
1
?
1 J
1
J
1 D
D
1
Violations of Coastal Zone Regulations
the International Finance and Business Centre in Intertidal Zone (CRZI) is thus
in gross violation of the Coastal Zone Regulations (Ministry of Environment &
Forests, February 1991).
x
3.4.4.S
In view of ttie surviving mangrove vegetation, and the flood buffering
role played by the Mtthi river estuary; the artHtrary fixation of the Coastal Zone
Ij.
(100-150 m land ward side of HTL), by the Government of Maharashtra, is not
1
1
J □
I
. 1
1
L□
k-'
environmentally viable. It is also violative of the Coastal Zone Regulations,
February 1991, as the reasons for taking this minimum (1OQ m) buffer from HTL
as CRZ have not been recorded by the State Government.
3.4.5
Conclusions
3.4.5.1
The site for the International Finance and Business Centre (BKC
Block_ G ) and parts of other blocks are within the intertidal zone, which is in
violation of the Coastal Zone Regulations (MoEF, February 1991).
3.4.S.2
The mangroves at the proposed site of BKC Block ‘G‘ were destroyed
during 1994 - 96.
3.4.5.3
The reclamation of wetlands and mangrove swamps in Mithi river
estuary would increase the flooding potential in the region, which is already a
recurrent annual phenomenon on the Mumbai coast line.
52
13
A
r
rtli>
. I
3• 4.5.4
6
V
I 0
i ->
The environmental appraisal for such a major urban development
j.dervumion in an ecologically sensitive area has not been carried out. This is a
case in point to illustrate the inadequacy of environmental appraisal process in
the Country.
4
3
3.4.5.5
4
3
Carrying Capacity based approach wherein the supportive capacity of the ecosystems
1 ?
and assimilative capacity of the environmental media are estimated to facilitate
1 3
. .3
delineation of a preferred scenario for sustainable socio-economic growth. The
The planning for socio-economic development in the region warrants a
preferred scenario would adopt bottom-up planning paradigm, and would reflect
.endogenous choices, equity and social justice, economic efficiency, and ecological
't ?
harmony in keeping with the paiadigm of sustainable development.
'I he regionaI pI<m, thus prepared, should also provide opeiatjonal diiectivos for
*
Ihn t<rgpaiatjon of iiia' ter plan:, for Iho setllonnjnls ju the aiea. Such an endeavour
would delineate :
4
1
•
land use zoning
•
ecologically-harmonious and econoinically-etficiunt activity typology, and
levels of each activity
•
activity zoning
•
technological and policy interventions
•
implementation and monitoring mechanisms.
3
i?
The regional plan should aim at:
e”0
•
maximizing equitable quality-of-life for people in the region
•
minimizing ecological loading (natural resource usage) in building regional
economy
•
minimizing environmental-status degradation.
■'.Amru
54
L..L .2.i 54^44
i
r.-u
^1
r'
!
>
3.5
Sanghi Jetty / Cement Project, Kutch, Gujarat
3.5.1
The Project
3.5.1.1
I he Sanghi cement plant el 2.6 M I PA capacity, based on diy piocess
tuchnology of I ullui Intuinational Inc USA. is undui uoin.Uaction in tliu uiua ol 730 ha
of land, a revenue waste land acquired from the Government of Gujarat, in the
*
villages of Meli Ber and Hothiyay of Abdasa taluka of Kutch district. Tho site is
adjacent to the limestone mine area, and is 3 km away liom the southern boundary of
1
the dc-notified (July 1993) Narayan Sarovar Sanctuary. The proposed use of 730 ha of
p
land by the industry is for the clinkerisation unit, green belt development, and for the
J
housing colony.
J
3.5.1.2
Tire major raw material for the plant is hmestone which is available at
the adjacent sfle. Additives such as clay, lalerile and gypsum are also available in
close vicinity of the project site. The fuel proposed for use at the plant is lignite, which
will be procured from the Gujarat Mineral Development Corporation’s (GMDC) lignite
mines at Panadro ( 40 km away from the site), and transported to the site by road.
Various grades of lignite will be mixed at the site to obtain a uniform sulphur content
' of 1 to 2^%. The lignite has low (10%) ash content. The total lignite consumption is
ustimatud as 1400 tomics/day.
71
Thu captive liinuslono mines leased by the Government of Gujarat to
3.5.1.3
M/s Sanghi Industries Limited is located in the area of 1940.31 ha near village
Jadhwa, f akhpat taluka of Kutch district, which is a donotifiod area of Narayan
Sarovar Sanctuary. The deposit comprises cement grade time stone of marine origin,
which is soft and rippable. The mining activity needs no drilling or blasting, as also
involves small overburden removal.
□
□
3.5.1.4
Ttiu proposed intake of scawalor is 2000 cum/hi out of wliich 1017, 380
and 003 curn/hr would be used as coolant in the desalination plant, power pUnt and
□
Input to -desalination plant respectively.
The desalination plant capacity is 5020
' 1
- ?'>1'
0
.
■xJuurni
I
Ul
I
4
4
I
cum/day. The desalinated water would be used in the process (20G5 cuin/day),
a
domestic and gmunbull duvulopinont of (l;’.|0 cum/day), and supply to neaiby
M
4
4
4
4
4
4
4
4
villages (2215 cum/day). The total generation of wastewater at desalination /
CiU/liyu power plant is 374 cum/hr brine of 68000 ppt and 1399 ciiin/|ir of
(by final discharge alter cooling and mixing in a pond is at 35UC and
45000 ppt- The water intake and wastewater outfall have not yet been identitied,
nor included in the Rapid EIA report.
J
J
I 0
•1
4
3
r
quantity and characteristics of these additives are not specified.
The
The residues of
these additives could have adverse impacts on the marine environment.
The power requirements for the project will be met from the- nueJusl
GSbB substation. I lie woik on 33 km long distnbution line is in progress. The industry
a
u
a 33
i
The biofouling potential of seawater is high (as per NIO study, March
1995) and hence the cooling water would require additives to prevent biofouling
3.5.1.6
it
i
3.5.1.5
has also received a No Objection Certificate from the Gujarat Pollution Control Board
tor establishing a 25 MW Naptna Daseo captive power uiant located at the cement
grinding unit and jetty complex.
3
i
B
4'
I.-'
3.5.1.7
Rie captive jetty and operational backup facilities, viz._clinker / cement
grinding, packing, desalination plant, captive power plant, cooling pond, water intake
and discharge pipelines, clinker stock pile,'transmission belt, and roads are located in
250 ha of land allotted by the Revenue Department of the Government of Gujarat to
M/s Cungtii Industries Limited in June 1995. The land for captive jetty and
operational backup facilities is situated in Kauthar Bet which is delineated as a
I J
I J
I?
k"
mudflat in.the toposheet of the Survey of India, located in the mouth of Kharo
Creek near village Akhri in Abdasa taluka of Kutch district which is about 13 km
from the cement plant (Exhibit 14). The total investment on jetty and approach road
is estimated as Rs 26.50 Crores.
( . K'1
i Ji Ul/<l
u?
56
Hie1
MbH
I
□
u
J
3.5.1.8
I he proposed jelly is tilted with tour combi loaders, with technology from
the SMB ot Germany, and is capable of loading ships with bulk cement or clinker at
rates ot 1000 l/hr. Bagged cement loading can be done automatically at rates ot 125
l/hr. Due to feed belt restrictions, the maximum loading rate is 2000 t/hr, irrespective
u
J
of the number of active loaders.
3.5.1.9
3
3
3
3
The activities proposed within the Coastal Regulation Zone (500 m
trom HTL) are :
•
dotty in the Kharo Creek
•
Approach road to the Jetty from the operational backup area along with the
conveyer for transportation of cement/clinker
•
Intake water pipeline for power plant (cooling) and for desalination plant
•
Discharge water pipeline from the power plant and desalination plant
•
Approach road, desalination water pipeline, and transmission line from the
operatK>nal backup rima (50 m wide and 500m long Ihiough Ihu CH?).
3
3
4
□
3.5.1.10
Status of Project Implementation
3
Limestone mine
3
Mining block Phase I is under preparation. The limestone bed is
exposed to the ground surface. Maximum overburden will be less
3
man 1 m thick
Liniuuionu mu iv is ivudy tor extraction, but no mining operations
3
were ongoing during the inspection by the NEERi team
d
J Wy. Chock dams have been constructed to intercept the rain water
O
I low .iijd email) ailificial losvivoirs. Ono ot lliusu dams is in the mine
J
area and the other near the cement planl site.
0
Cement Plant
J
About
60%
of
the
plant
construction
has
been
completed.
Construction work was in progress during the inspection by the
NEERI team
I?
1?
p
7 (
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SB
Ol
Approach Road / Conveyor Bolt
.
I
B
S
it...
a
About 13 km long andi 20 .lii wide
liaril/mutal
toad bolwoun ttiu plant
and jolty silo has boon coinplulod winch is gbslryeting thg,..UiltJ
a J
pass.iqe ot tidal water. The construction ol the biittge in the inteitidaj
zone has been stopped in accordance with the directives of the
I J
Hon-ble High Court nf Gujar^ on April £3, 1S&3
I ’A
The construction work for the conveyor belt has not yet commenced.
-
1 3
•
D
—
10
3.5.1.11
Captive Jetty
■t ■, -;.■ .y
'T^-I
Activities
within 500 m from HTL on land in the water front
A
; k I i ♦ i e- lAfitKn
I
I 3
h- O
•
An earthern bund of 50m length is constructed
.
Ol the total proposed road length (of around 640 m) to the jetty. 170
&
a J
a
£
in is under construction at ditteienl stages. This includes 110 m .on
IIi> I.uid and 60 iii botwogii tho.land and Ihg high lido lino
.
Some construction
materials
like
MS
Casings,
structural
and
&■J
KHi.lorccinonl stool, aggregate, cement, and constiuction machine^
including piling ngs, clones, and giab are ■ stored in an aiea,
k.-)
apjh.jximately 100m trom the HkihJ ide li.no^
tn J
hA
Activitiu^ between the hTL and the L TL
• •
i
u.J
kA
Approach road to jetty, - 320 m long - was under construction during
the visit of NEEI3I team to the piojuct situ
•
Earthern bund - 470 m long - for piled approach, and 80 m long piled
jetty has been built.
hj. j
w
'SjlAJ r/i)
5
-X3
The observations of NEERI team in November 1996 indicate that the pH value
of coastal water is 8.3 with good buffering capacity (alkalinity 10&-111 mg/l). The
turbidity values (1.6-2.5 NTU) indicate that the coastal water is clear. There is not
much variation in the salinity during the high and low tides.
The salinity of water
varies in the range of 38-39 ppt. Increase in dissolved oxygen during the high tide
indicates good reaeration capacity of the coastal water that supports abundant
aquatic life. Nutrient load in terms of phosphate and nitrate is in the range of 0.10-
0.74 and 1.50-2.35 ing/l respectively.
3.5.2.4
300 m at
The, width of the Kharo creek, wherein the jetty is under construction, is
jetty site and 600 m at sea mouth.
The land cover is predominantly thick
island where the jetty is located as per the
maiiriroy^y cqctation except on the
analysis ol remotely sensed data (Exhibit 15). The navigation along the creek, and
jetty
construction
3.5.2.5
and 'operation
would
affect
adversely
the
mangrove
The scarce water resources, scrub vegetative cover, rich lime
stone deposits, dense mangrove vegetation, cretaceous geological formation
i'Ri I Ul *WI W
and low population density characterise the eco-sensitivity of the region, as
also constrain the developmental options.
3.5.3
Project Appraisal Process
3.5.3.1
Limestone Mining
Thu
proponent
had
applied
Government of Gujarat on July 14, 1992.
lor
limestone
mining
tuasu
to
the
The Government of Gujarat denotified a
pan of Narayan Sarovar Sanctuary on July 27, 1993 and allocated the area for
prospecting minerals by reducing the sanctuary area from 765.79 sq km to 94.87 sq
km. The said denotification was cancelled by the Hon’ble High Court of Gujarat on
March 24, 1995, as the notification was required to be approved by the State
Legislative Assembly. The State Legislative Assembly of Gujarat passed a resolution
I
i |
(
0
to dcnotity- the Narayan Sarovar Sanctuary to 444.24 sq km on July 27, 1995. The
proponent obtained Coju.litionaL.E’IYifoninontid Cleafancci from the Ministiy of
□
Environment and Forests on August 8, 1996 for mining of limestone in this area
J
based on Comprehensive Environmental Impact Assessment report submitted by the
0
J
proponent
J
3.5.3.2
V
J
Cement Plant
The proponent obtained the No Objection Certificate from the GPCB for the
Cement Plant on July 5, 1993. The MoEF exempted the Cement Plant and captive
; O
Jetty from environmental clearance as per its letter of June 16, 1995 on the
J
‘ ground that the proponent had obtained land and the GPCB clearances prior to EIA
Notification dated January 27, 1994 (modified in May 1994) with the condition that the
I
proponent would not undertake any mining activity within 25 km boundary of the
Narayan Saroyar Sanctuary. Subseguently, the MoEF waived this condition (locating
Hh .iwjy lioin Um N.ihiy.in
HiHling ainu
novar San< hiaiy) on Novvmbvi 7, 1QUG
(oji the day of llm isgiaiiGc ol tlio.pHkji of the I lon’t)!^? Supiume Couit in this case),
(
ajld.demanded.ari.IjlyirorHnontal Management Plan hgtoio commencing the cement
3
.
■?•
0
plant operations.
»
The NEERI team notes that the aforementioned exemption given to the
proponent in June 1995 is indeed exceptional as both the public and private .
V
sector industrial projects were under the process of detailed appraisal by the
d
MoEF at that time.
3
3.5.3.°
Captive Jetty
The proponent obtained No Objection Certificate from the GPCB for the
0
J
Jetty on May 9, 1995; and for the captive power and desalination plants on January
24, 1996. The proponent had sought CRZ exemption from the MoEF on July 7t 1995
but the MoEF clarified on February 27, 1996 that the Jetty requires environmental
-
I
I >
k
1
appraisal as per ttic CRZ Notification. The Hon’ble High Court of Gujarat on April 23,
1990 issued u
kiy _p_rd_ci on Jetty coi utmctioir Thu_|)ioj)oncnt mado an application to
the MoEF foi CRZ clearance on May 1, 1996 with the recommendation for clearance
63
jjeurn/
Si J
li J
ki
I
I ~
June
£
Miscellaneous Projects of the MoEF visited the Jetty site during August 26 to 27, 1996
it had obtained from the Sujarat State Department of Forests and Environment on
J
Expert Committee
I
for Infrastructural
Development and
The information on any
known to the NEERI team, till the submission of this report.
3.5.3.4
I J
I J
i J
I J
i ?
The proponent sought separate clearances for the captive lime stone
mines, cement manufactuiing unit, and captive jetty and power plant from the Gujarat
Pollution Control Board, and the Ministry of Environment and Forests spread over the
years 1992-96. The aforereferred environmental appraisal agencies treated these
projects separately, and did not insist on regional E1RA to enable assessment of
cumulative impacts and risks arising out of the total project related activities.
J
I
'l
I
I
I ?
1
1 3
3.5.3.S
. I ?2)
3.5.3.6
I
I
The
further communication in the matter between the MoEF and the proponent is not
I
k
I J
I J
.
1996.
. aQd.submittodjtsjoporUoThoMg^
I
I
I
I
21.
The site clearance for limestone mining (Captive mine for the
Sanghi Cement Plant) was granted despite the fact that the mine is contiguous
to Narayan Sarovar Sanctuary,
The Guideline on siting of industries (1985), viz, minimum distance
from the sanctuaries as 5km, was overlooked by the MoEF while granting
J
clearance to the siting of the Sanghi Cement Plant on November 7, 1996.
. ................
i
—
■
I
J
3.5.3.Z
The Department of Forests and Environment, Government of
Gujarat granted the clearance for the jetty, intake of sea water, discharge of
I 3
saline water, approach road, pipe line, captive power plant, and transmission
lines despite the fact that the above activities are to bo carried QMt Ip OH Island
I ’
(CRZ I area) surrounded by thick mangrove forests, which are ecologically
i
13
13
i3
sensitive.
i
I
5 /^l''
p
i 3
I3
I?
64
p
r
«»*-
r- ■
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■
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I
II
3.5.3.S
II '
failed to include the following:
C
•
fl J
fl
fl
fl
fl
4
1/
The risk assessment excercise carried out by the proponent has
Hazards due to dredging, adverse cyclonic and weather events, seismic risks
(seismic zone V), defuse sensitivity, collision, fire, machine sinking, accidents due
to navigation and communication failure, and sabotage; nor are the Disaster
Man-ujoniont and I’rnurgoricy I’roparodn*.^? Hinn? pivpaind
•
Piuvitj'Jii of firu fighting facilities and training for roscuo teams have not been
dulll
3.5.4
Environmental Viability of the Project
3.5.4.1
In view of the scarce ground water resources, and ven/ low precipitation,
the region cannot support the project induced growth.
fl
11
a
J
J
In view of the imperatives on protection and conservation of rich
3.5.4.2
endowment of aquatic resources and mangrove swamps, the project involving
S
limestone mining, cement manufacturing, and captive jetty and power plant is
2
not environmentally viable.
i ’
fl 3
fl 3
1
The jetty --------------------------------construction and operation
would adversely affect the 11*3
----------------------------------------
3.5.4.3
s
■
t in
mangrove growth whereas fugitive emissions from the nroiect operation v/uuld &
affect the bottom dwellers, viz, meiobenthos. The studies on food chain in Kharo
crock waters rovoal that the ecological pyramid (Exhibit 1G) is stable, the ccntiibution
|£.
of meiobenthos to bioproductivity is high, and that the ecosystem can support higher
fl d
levels of secondary and tertiary' consumers. However, if the bottom sediments that
am h;ibjtats
fl 2
fl J
of
meiobenthos and
primary
productivity
are affected,
th£
. ecological pyramid would become unstable. Similar transition (between 1991 and
1996) due to the establishment of a thermal power plant on the wetlands surrounding
Dahanu Creek in the State of Maharashtra was observed in a NEER! report submitted
IP
U?
to the Hon’ble Supreme Court in October 1996.
I
fl 0
fl°
65
r-
. : . '•'k'-jiM
- “ ■
•
■
'■
.
tiro
3.5.4.4
Violations of Coastal Zone Regulations
,
M/s Sanghi Industries Limited did not seek explicit clearance' from the
MoEF prior to tho initiation of tho construction of tlTe jetty, in violation of Sections
J
3(2)(n) and 3(2)(iv) of tho CRZ Notification (MoEF, February 1991) that requires
I
I
I
1
environmental clearance from the MoEF for any activity in Coastal Regulation Zones,
with an investment above Rs 5 crores.
I ■->
I?
i3
3.5.4.5
The cement manufacturing does not necessarily roguire a sea
front; and hence the location of jetty and allied activities such as the
construction of roads and pipelines in CRZ are a priori violative of the Coastal
Zone Regulations.
a
3.5.4.6
The area around Kharo creek is ecologically sensitive, and has dense
mangrove vegetation. Hence the Coastal Regulations Zone • area between the High
‘ and Low Tide lines and 500m buffer of the High Tide Line - is to be classified as CRZ
J
I as per the Section 6(1). All structures in this region are thus violative of the
Coastal Zone Regulations.
0
i
□
o
3.S.4.7
approach
Location of the captive power plant, construction
of bunds,
roads, and temporary sheds for storage and residence,
and
desalinization plant are gross violation of Coastal Zone Regulations.
i.
I
13
3.5.5
Conclusions
3.5.5.1
The construction of jetty and operational backup facilities including
captive power plant in the coastal regulations zone is in progress, without obtaining
!
J
!1 >u < It mi at it; u fiom tho Ministry of Envlionmunt and poiust^, whtuh Is tuquitud
pot
the Sections 3 (2) (ii) of CRZ Notification of February, 1991.
b
3.5.5.2
The project proponent sought clearances separately for the mining of
limestone, manufacturing of cement, captive jetty, and captive power plant from the
I?
67
cu mi
.
Aj
w
4 •u
GPCB and the MQEF. The assessment of cumulative impacts and risks would have
4 3
w.u i.ji ihj'l ..Ihn— Il'HLlilyniviil—iH—Iho_ llugion.il I nviiuiiinonl.il_ Impact and
J
HisK
Assessment, report by the State Department of ^Forests and Environment / MoEF.
J
However, the aforementioned authorities have granted clearances without a Peqionql
4 J
4 J
Environmental Impact and Risk Assessment study.
J
a JJ
ft
n- □J
3-5-5-3
The—environmental
appraisal
process
was
fragmented
and
uncoordinated as evidenced by the sequence of the events given below:
•
4
The MoEF (Expert Committee for Industry) granted clearance to the Cement Plant
on June 16, 1995 with a condition that the mining of limestone would be 25km
away from the boundary of Narayan Sarovar Sanctuary
•
The MoEF (Expert Committee for Mining) granted clearance to the limestone
mining activity (captive mines of Sanghi Cement Plant) in an area contiguous to
Narayan Sarovar Sanctuary on August 8,1996
•
The MoEF (Expert Committee for Industry) waived file condition on Inraring the
nirriiiifj ukju 2L>kui away horn Narayan Suiovui Sanctuuiy on Novumbui /,1Wu.
4
U
3J>.5.4
fl
lh<;Jocutign of the joU.yjn_an_isjdnd sirrroimdud by dense yogotution of
EkllLqrpvos is environmentally- non-viable. The construction and operation phases of
*>
Lg.tfy..would impair the dense mangrove vegetation and the aquatic ecpsystem, and
H V
are thus not environmentally viable.
«>
-
3.5.5.5
0
tt
The cloud cover in this region is high, and the precipitation very low
indicating the need for improving vegetative cover in the region. In such a situation,
m)
^.g-^QnglLO'catjpn of Narayan Sarovar Sanctuary is not conducive to the ecoloqicaIly
harmonious development in the region.
ftp
ftp
ftp
MP
10.vi.6w of proven lime stone reserves in the region, there are at least
three .pending proposals of| similar nature with various bodies of the Government of
■
Gujarat- The State Government agencies / MoEF should have assessed all these
ftp
prefects after a study on the regional carrying capacity.
M >>
Sxlcx/rx))
i
a’J
i
S’'
I •
I '
I I I -
The planning for socio-economic development in the State of Gujarat
3.5.5.7
vAifi.int', .i Carrying Capacity bar.nd appioaclT whoroin suppoitivo capacityvof the
I
I I
ecosystem in the region, and assimilative capacity of environmental media are
estimated to facilitate delineation of preferred scenario for sustainable socio-economic
growth. The preferred scenario would adopt bottorp-up planning paradigm, and would
choices, equity and social fustico, economic ollicio«icy, and
I -
. h a m tony .in keeping with the paradigm of Sustainable Development,
I
-L-hp leqipnal plan, thus pi epared, should also pi ovide operational diiuctives tor
i3
tne preparation of master plans for each urban/serni-urban settlements in the area.
I
I
13
Such an endeavour would delineate :
I
i ~
I 3
iJ
•
land use zoning
•
ecologically-harmonious and economically-efficient activity typology, and
levels of each activity
•
activity zoning
•
technologrcal and policy interventions
•
implementation and monitoring mechanisms.
I -
□
The regional plan should aim at:
•
maximizing equitable quality-of-life for people in the State
•
minimizing ecological loading (natural resource usage) in building regional
i
economy
‘1
•
minimizing environmental-status degradation.
to
!
4
Conclusion and Recommendations
4*1
Ihe_CRZ Notification of the MoEF; and the premises, preconditions and
agenda for Sustainable Development (delineated in Section 2 of this report) were
overlooked, by the,concerned State and Central Government agencies during their
appraisal of the developmental projects (Exhibits 17 & 18) under examination.
T_be._ environmental appraisal process, both" at the Centre (Ministry of
hOYirpnipent andHorests) and the States (Pepartments of Environment, and Pollution
-P
ip
i ->
Contiol Board!;) is hckadaji;icaj. [hoAip|?j«Hsa!j?rocpss for all the projocts, oxarninod
69
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Exhibit 17
Violations of Coastal Rec jlations z.one Notification by the Projects Under Examination
Name of the Project
CRZ Notification (MoEF, February 1991)
Goshree
MPC
Sinar Mas
BKC
Sanghi
•es
No
NA
Yes
•es
es
No
NA
Yes
•'es
NA
NA
Yes
• es
Coasts! Regulation Zones
identified wrongly (Sectionl,
Annexure-I)
Violation of Development Regulations
in Coastal Regulation Zones
(Anngxure-I)___________ __ _ ___ _—
•es
Yes
NA
Yes
• es
Pjoject involves prohibited
activities (Section 2)
o
IS
* Clearance sought for
regulated permissible activities (Section c
Goshrw*
c' Manga :- Power Company (with Cogentnx as lead partner) at F^andikur. Karnataka
. 1000 MW Coal based Therma’ -0/.-
MPC
Sinar Mas
BKC
Sangh!
. Sinar Mas Pulp & Paper (India; U-
z V
I
s’ashtra
- Bandra-Kurta Complex . Maha'shra
• Sanghi Jetty/Cemont Project. Kutc*.
LLimi
,1
- Kr -2:'.cable
NA
- Goshree Integrated Island Deve'o:--i' Kerale
Q Cz O O U C
u <.
C C
(
1
U C
V
U
O
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I.
<
1
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Exhibit 18
Satisfaction (or otherwise) of the attributes of Sustainable Development in the select project
Condition for SD
Goshree
GIDAs
propzsa'
Equity and social justice
NS
Endogenous choices
NS
Economic Efficiency
NS
Ecoiogic harmony
NS
MPC
Sinar Mas
BKC
Sanghi
NS
NS
NS
NS
NS
NS
NS
S
S
S
NS
S
NS
NS
NS
NS
On!) t-idge
(nc fe:la.T.inaticn)
in rr edified design
(h’EEAls
Recommendation)
S
5
Goshree
- Gosh'ee Integrated ls!a~z Le
MPC
-
130j MW Coal based Tne—= -sac ’ =anl of Mangalore Power C:~pany (with Ccgentrix as lead partner; a: Na'-zxjr. Karnataka
Plan Kerala
Sinar Mas
-
S rar Mas Pulp & Pape’ "ta L ~ -et Maharashtra
0KC
•
Eandra-Kurta Complex V'--•«'ra
Sanghi
• S&rgh' Jehy/Ctment Pro k
NS :
S:
not satisfied
satisfied
S.,arat
5
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1 in. .th.i.s ./.eppit, is found to be fragmented, based on insufficient and inadequate
J
LO.tQf.CPQtion^_ and subfective in nature.
i3
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1
The lack of application,
transparency,
£)j^£Q110t±lhi[ity _and objectivity .while granting clearances / conditional clearances /
.ry.fpsal^ and consequent revoking / reinstating / retracting have caused major delays
in the implementation of the developmental initiatives. The lack of transparency has
■3lso resulted in loss of credibility, which is so crucial for the active involvement of the
£rX2LQLLHJAlitV dI_ L)1 LIL-_ for meaningful intemahsatioi) of enviionmental concerns in
1
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J
3
duyglopmoiilal pl.inning.oriwhich tho Fourth and Fifth National Five Year Plans njado
^c(Jfic c.omrnitmcntt and the same rhetoric reiterated in the Eighth Five Year Plan.
J
J
4.2
3
obiectivity, transparency, and accountability. The sensitivity towards ecological and
The existiiK) institutions tor environmenlal appraisal lack knowledge, skills,
environmental concerns is also conspicuous by its absence in the operation of these
0
J
bodies created specifically for the protection of environment and conservation of
resources.
3
4.3
3
D
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t
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The . institutional mechanisms; viz. MoEF, CPCB, State DoEns. and
SPCBs; established for the protection of environment are ineffective in ensuring
internalisation
of
environmental
concerns
in
the
process
of
economic
development. The trans-sectoral role of environmental function is overlooked in
the existing institutional structure, as the natural resource utilization is the
mandate of the other Ministries. The integration of environmental imperatives
across the socio-economic sectors warrants substantial change in the existing
J
institutional mechanisms. The new institutional mechanisms should facilitate
horizontal interaction of the new institutionfs), proposed in Sectior^ 4-5 of this
rcport, with all the socio-economic Ministries for review and assessment of
J
J
policies, plans and programmes in all socio-economic sectors, as also to
J
synergize the resources of the community in the protection and rejuvenation of
J
3
environment and natural resources.
1
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4
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1
.
(■
.
x
72
A
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M
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4.4
3
mechani^sjQL^
k 3
flreed^xempljfied by the current .recurrent_hurricanes in Andhra Pradesh, with
M
ojncunei^
a u
protection, if the manifestations of the unlimited
in ncijoininc, Orissa (in November / December 1996). arb not
to become a routine and irrepairable ecological backlash looming large on the
i •>
□
country.
4.5
I J
Recommendations
L'J_viewolJhujmI,cH..llve;. t,| accel.u.iiPd economic q.owth and development,
a 3
n J
■■nrLtMc.rying.n.P^Jor^
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The root cause of wjllful default warrants major overhaul in the existing
of environmental concerns in the process of
it is urgently and exphcitly essential to effect
chanfle., in the existing institutional mechanisms for environmental protection and
rejuvenation.
3
•' .3
The, aspirational, goal of sustainable development warrants urgent legal
ft
interventions based on the precautionary principle-. There is thus adeguate
ft J
ft
reason, to take recourse to the Sections 3, 4, and 5 of the Environment
(Protection) Act, 1986 for ensuring effective management of our resources,
. ecology, and environmental quality.
ft v
In order to address the complex issues in planning, management and utilization
of resources, it is prudent that the Central Government considers constituting an
ft
.ft
independent and autonomous National Commission on Environment and Ecology
M
to establish and implement a pragmatic National Sustainable Development Policy
under the provisions of Environment (Protection) Act, 1986; and confers on this
J
ft
authority all the powers necessary to ensure internalisation of environmental and
a
ecological concerns in the process of economic development. The Commission
should be headed by a retired judge of the Hon’ble Supreme Court, and comprise
internationally renowned professionals (engineers and scientists), environmental
l.r/ryi.-is, and public spirited community loaders. Following independent and
ft J
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73
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autonomous, authorities also need to be constituted to function under this
commission :
J
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•
NjliLUM»l Environmental Protection Authority(NEPA)
’
^ional Environmental Impact and Risk Assessment Authority (NEIRAA)
.J
Those indep_endcnt_and autpnomous,alij.h.oriti(?s shouldalso bo headed by the
•uln-fjo.iu,.-, .4 up, llen-L-!*. su1?l.(n,<. (AhM uii!U!!!l|..^m,,|A ut ,„M„t,llu„u|
«
J
r^ute. in the areas of environment, hydrology, oceanography, terrestrial and aquatic
J
ecology, environmentaLenflineerinq, chemical / mining / industrial / civil engineenng
3
3
developmental and environmental planning, and information technology
□
n Authority
J
•
HuaMamaatmUMl long (o.m n.-.donal land usn and Mlo, use plans inMr a|i,,
fficMnajhg delineation of MBlah,1hln agricultural P,aa,nns. huTOn
B^nLSa_^and_Jndustrial
typology
in
consultation
with
the
MinistjiesVPepartme^^
concerned
)
>
bnheJLovamrnen. ol India-State Gneernment^! nnnj se,t Governments the, ha,
4■ t
.
aoyersc hoannap^ocoloaicaHragi^
To .donufy ecologically fragilo rogionr and buffer /onmui. IhLfounuy ami dov.so
pi jjin.tii..
4
•
.!LhJ!£JlIoU?cliun
„cok,o,ca„v „an.,A
Tf ^OIIOIOelilldiM!^^
areas including coastal zones
•
To.t.ml,. end,, eonGman mon^ th,, oafeuyJ,!1.L..l,vl,0ll„u„„.,,
locevolvtnq
prevemive
and mitiqative
plans,
action
and
to
ensure
the
implementation of such action plans
’
^-Pr&rjare (from time to time) region specific environmental
management
guidelines and standards based on regional assimilative capacity
•
Tgjromote cleaner technologies of production in economic sectors, recycle and
rgu.se technologies, biotechnologies, and integrated technologies for management
of environmental quality and conservation of resources
4.
<
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74
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^jujuJYm
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111dVNalinal Rusouicos Accounting to unablu estimation Qf Gross
•
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Fcolt)<jica& Product and advise tho Govornmont on Structural Economic Qhango
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thal is v/a^rantnd to ensiKgj^mpatibiljty.b^
□
ensiiro discernible positive movement towards the overall aspirational qoal^of
J
sustainaUc development
0
To iHidcrt-ikc I ihf Cycle Assessment, paiticulaily gt enviionmuntally destructive
•
' J
3
□
products, with a view to their replacement with environmentally harmonigus
products
•
To build capacity in the existing institutions by effecting changes to ensure
that the scientific mandate of these institutions is respected, and reflected in
□
□
tho ecology pnej the eepnorny jo
their operation
•
To ensure community participation in the management of natural resources and
protection of ecology, and to ensure implementation of afforestation programmes
tor achieving a minimum of 33% forest cover in the Country, over a reasonable
time fiame, as per the National Forest Policy, 1988
•
ecu ii:i:ii linj ciiyii onmont and ecology.
->
g>
To plan,and ensure,compliance with the international agreements and protocols
Mandate for the National Environmental Impact and Risk Assessment Authority
•
To delineate, and implement, the terms of reference for Regional Environmental
Impact Assessment and Carrying Capacity based Planning studies, and the
giiididim :. lor incoqioniting [ho ipsult:; of these sludigs in ni.icio apij IIlicto.lU.Ypl
pl.ii ii in kj loi j-ocio economic development ii i India
D
.
To create viable infrastructure and to delegate responsibility, functions and
accoiiiliability in respect of EIRA to the relevant Cential anil Slate Goveimnent
agencies without ambiguity or redundancy at the two levels
3
D
0
3
J
0
0
o
•
To enable the establishment of a National Environmental Monitoring Organization
to facilitate faster EIRA processes
•
To review terms of reference for EIRA of developmental proposals with potential
adverse
impacts on conservation of
75
natural
resources
and environmental
JuJcurm
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|.KM... I«1, .,!,,,Mis,, C<>„1p«,l,o„?ivf rillA ,.,1,0,1s l,„ ;,«,<„,I,ng ,„,v,„,„,,,,,,,l„
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deaMii^^uid ensure post implementation monitoring through the existinc
k
institutions at the Centre and States
a >>
a □
U 0
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1
extension ot scope ot EIHA to the full range of ecologically and socially,
’
relevant dovelopmental activities
TQ-JpuLIIII^Io.explicit guidelines for EIHA in all ^ocio-economic sectors to aid
a
DJa'ining,. Qxocutipn^^^
il
< n r. 11_>l<j 11. if i•j). ij ynt |hpjuc[. ippi aisnI
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jy!l?|ic LxLrticiL\MioIkJo
apQropriato, Jcgal... nionsures.. Jgr_the . implementation bf
EIF^A
reccinmundatiuns, and post-project surveillance
•
Jo !L<;H.y.^|>caalJi cuiise to acHm consultaiit tor umkal.ikiihi LIHA, and to involve
iecpanisod_yoluntary groups, through appropriate support, in ttie appraisal process
ft
I
a
i: '
i 3
I
i
.
Tojakejujpropriate steps for capacity building on EIRA including the restructuring
111 icijxitjotLjgrjransp;iironL .decision jmpkjtig.Jo enable sustainable socio-
Icvclopment in the Country.
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research and development, and
otinstihitional m^chadTism^arom^jeleva
7o
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STOP^
4
4
/
fi
I
4
The
Derallers’ Guide
To The WTO
A
I
Welcome to the Focus on the
Global South’s Derailer’si
Guide to the WTO
I;
I
I
a-
4
policy makers and trade delegates to immediately
halt the substance and direction of current trade
negotiations and urgently re-think the so-called
Doha Development Agenda.”
2
The Derailer’s Guide to the WTO
As farmers, fishers, indigenous peoples,
provides basic information about WTO agreements,
workers, women, mass organizations, social
what is on the negotiating table for Hong
movements and activists from all over the world
Kong and the remainder of the Doha Round
have repeatedly pointed out, there is nothing
which will likely continue through 2006), and the
even remotely developmental about the
main actors in these negotiations. It also offers
current Doha round of WTO negotiations.
ideas about how all those committed to social and
On the contrary, the Doha negotiations are
economic justice can stalemate, or derail, this
heading in a direction that will lock the world’s
latest liberalization offensive through the WTO
peoples in a trade regime that will have disastrous
parading under the guise of “development.”
impacts on food security and sovereignty, industry, As in the Seattle Ministerial Conference in
employment, the environment, livelihoods and
1999 and the Cancun Ministerial Conference in
the access of millions of people to essential
2003, no deal is better than a bad deal, and
services, technology and health-care.
bad deal is the only possible outcome of the
Any trade deal that emerges from current
direction in which the current negotiations are
negotiations will serve to consolidate the control
heading.
of large national and multi-national corporations
Time is short and the issues are urgent and
on the world’s agricultural, industrial,
many. If we want to protect our commons, and
technological and infrastructural capacity.
our rights and capacities to shape development to
Delegates from several developing countries
meet the priorities of our communities and
— especially Africa, the Caribbean and Pacific
societies, it is imperative that we prevent a new
regions, and Least Developed Countries (LDCs)
trade deal from being reached in the Hong Kong
— also share these concerns. But they appear to
Ministerial Conference and subsequent
be both, unable and unwilling to stop the WTO
negotiations.
machinery in its tracks and to demand the time
That is, we need to DERAIL THE WTO!
and the ‘political space’ they require to fashion
We hope that you will find this
trade policies that truly serve the developmental
DERAILER’S GUIDE TO THE WTO, useful in
needs of their respective populations.
planning your strategies, actions and mobilizations
It is now up to the world’s peoples — all of
towards this goal.
us — to bring pressure on our national law and
prom 13-18 December 2005, trade ministers and
delegations from the World Trade Organisation’s
(WTO) 148 country members will meet in Hong
Kong at the WTO’s sixth Ministerial Conference.
1 To derail the WTO is an active strategy to shut down the WTO by preventing consensus in its negotiations.
2 Ministerial Conferences are the WTO’s highest decision-making body and are empowered to take decisions on all
matters under any of the agreements within the WTO regime. At the Hong Kong Ministerial Conference, delegates are
slated to agree on the elements of a new trade deal to enable negotiations in the four year old “Doha Development
Round" to be concluded in 2006.
2
CONTENTS
1. The End of an Illusion............. ..............
2. Ten reasons why this is not a development round...
3. The Agreements exposed:
- Agreement on Agriculture (AoA)
- The General Agreement on
Trade in Services (GATS)
- Non-Agricultural Market
Access (NAMA)
24
4. With a little help from its friends: WTO, IMF and
the World Bank
28
5. The Colombo Declaration
30
6. The G-Guide Groupings in the WTO Agriculture
Negotiations
.........................................
33
7. Glossary and Trade Jargon
36
3
13
14
21
Printed for limited circulation only by
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Vill. Akajan -787 059
Via. Silapathar, Dist. Dhemaji,
Resource & Layout by:
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l
3
The Deratier’s Guide to the WTO: Section 1\
The End of an Illusion
WTO Reform, Global Civil Society
and The Road To Hong Kong
SUMMARY
The “July Framework Agreement” is the last
nail in the coffin of the illusion that the WTO can
somehow be reformed, either piecemeal or
comprehensively, to serve the interests of developing
countries. More than ever, the Framework and its
aftermath have revealed the WTO to be an iron cage
that traps developing countries in a negotiations
game that is systematically skewed in favor of the
big trading powers of the North.
With even greater intransigence on the part of
the trading powers of the North today, as highlighted
by their paltry pre-Hong Kong offers in October and
November 2005, it is difficult to elaborate any other
strategy to protect the interests of the developing
countries and global civil society than the one that
was developed for Cancun-that is, derailment of the
WTO Ministerial.
Essentially, derailment involves zeroing in on the
key point of vulnerability of the WTO: its consensus
system of decision-making. Concretely, it means
working to prevent consensus from emerging in any
of the key negotiating areas prior to and during the
Sixth Ministerial in Hong Kong.
A strategy of derailment, to be successful, must,
in the months leading up to the Sixth Ministerial,
articulate lobbying and mass pressure in Geneva
with national mass campaigns directed at specific
governments, culminating in a coordinated program
of mass actions and lobby pressure in Hong Kong
and globally on D-day in the middle of December ' '
2005 (13th-18th).
1. SEES AW STRUGGLE
The last few years have seen a seesaw struggle
between the World Trade Organization and civil
society. In Seattle, big power disagreements, the
revolt of the developing countries, and massive civil
society mobilization brought down the “bicycle of
liberalization”, to borrow C. Fred Bergsten’s
description
of the WTO as bicycle which can only remain
upright while it is moving forward with its free-trade
agenda. (1)
The bicycle was set upright in Doha, when the
absence of civil society mobilizations allowed the big
trading powers to bamboozle developing countries to
sign on to the so-called Doha Development Agenda to
expand the ambit of the WTO. Then in Cancun, in
September 2003, a better-organized South cum civil
society mobilizations inside and outside the Cancun
Convention Center, the tragic climax of which was the
suicide of Korean farmer Lee Kyung Hae, brought the
bicycle of liberalization down again.
Our victory was short-lived for the equivalent of
a coup was mounted at a General Council meeting in
late July 2004 in order to restart the stalled “Doha
Round” of trade negotiations on terms favorable to the
North. The WTO is upright again and is moving with
momentum towards the 6th Ministerial in Hong Kong
to be held in mid-December 2005.
Despite the apparent current stumbling blocks in
pre-Hong Kong negotiations (for example over tariff
reduction formulas, disciplining domestic support and
the elimination pf export subsidies), there are
disturbing signs of convergence. For example, India
and Brazil may be further co-opted into meeting the
demands of the EU and US in exchange for market
access (for Brazil) and concessions on the movement of
persons abroad to supply services (Mode 4) (for India).
That the WTO is an institution that can be
reformed to serve as a vehicle for a more benign kind
of globalization is one of the illusions that has been
left behind by these developments. The one positive
element in the 2001 Doha Declaration-the clear
statement that public health concerns take precedence
over “intellectual property rights”-was nullified by Big
Pharma’s successful effort to make well nigh
impossible the export of generic life-saving drugs from
developing countries with manufacturing capacity
to developing countries with none by imposing
onerous stipulations on both importers and exporters
4
So unacceptable and cumbersome were the
conditions imposed by the drug companies in the
decision adopted in August 2003 that no developing
country facing an HIV AIDS emergency took
advantage of the temporary waiver from Article 31
(f) of TRIPs provided for by the decision.
That reform is mission impossible was
underlined by the Cancun ministerial in September
2003, when the EU and the US provoked the
collapse of the ministerial rather than significantly
reduce their high levels of support for their agricultural
interests or retreat in their effort to expand the
WTO’s jurisdiction to investment and other
economic activities beyond trade. The historic
walkout from the Green Room led by African
delegates was the only appropriate response to the
intransigence of the North.
The so-called July Framework adopted at the
WTO General Council meeting in Geneva in the late
summer of 2004 is another glaring example of
stonewalling by the developed countries. Practically all
the key concerns of the South were subordinated to the
industrial countries’ agenda of defending their high
levels of agricultural subsidization, bringing down
non-agricultural tariffs, pushing the so-called “New
Issues” agenda, and pressing developing countries
make offers for the liberalization of services. In
contrast to more optimistic earlier assessments of the
possibilities of advancing developing country
interests in the WTO via a strategy of reform, Oxfam
International, for instance, bleakly characterized the
July Framework as “a minimal agreement that keeps
talks and the WTO afloat, but fails to bridge continuing
stark disagreements between developing and developed
countries, let alone guarantee a pro-development
outcome.” (2)
Not surprisingly, there is little talk these days
about “social clauses,” “environmental clauses,”
measures to institutionalize the priority of public
health concerns over patent rights, or agricultural
market access reforms as the key demands of an
agenda to reform the WTO. In the months leading
up to the Cancun meeting, civil society, operating
under the principle that no deal is better than a bad
deal, eventually coalesced around a strategy of
derailing the ministerial. If anything^ the prospects
of a good deal are even more distant as we move
towards Hong Kong. The strategy of derailing the
ministerial is even more relevant today.
The July Framework’s key agreements illustrate
why reform of the WTO is a dead end as a strategy for
developing countries and global civil society.
2. THE KEY AGREEMENTS
A) INTRANSIGENCE IN AGRICULTURE
See Section 3, Part 1 of The Derailer’s Guide to the
WTO for further details)
In Cancun, the firm stand adopted by the Group of 20
and Group of 33 against the demands of the United
States and the European Union for more access to
their markets while maintaining the high levels of
subsidization of American and European agriculture
prevented the initiation of negotiations for a new
Agreement on Agriculture that would be detrimental
to the interests of the South. Also key in frustrating
the agenda of the North was the tough stand of four
West African cotton producers-Benin, Burkina Faso,
Chad, and Mali-who demanded elimination of US
cotton subsidies that were ruining their production
as well as compensation for their losses.
Yet the “Framework for Establishing Modalities
in Agriculture” that emerged out of the late July
meeting produced agreements that were clearly
detrimental to the developing countries. Since July
2004, there have not been any developments in the
offers made by the rich industrialized nations of the
north which would address these concerns.
Essentially, the Agricultural Framework:
1) maintains or expands the key mechanisms of
“domestic support” or subsidization of EU and US
agriculture, the so-called Blue Box and Green Box;
2) creates a new restrictive category-that of
“sensitive products”-to hamper market access for
developing country products; while
3) makes conditional and non-time bound
commitments to eliminate export subsidies; and
4) pays lip service to the developing countries’
demands for the designation of “special products”
and other forms of special and differential treatment.
The flurry of proposals put forward by the EU
and US, in October and November 2005, have made
their offers in agriculture conditional on concessions
in services and industry. There is little being offered
in terms of Special Products or Special Safeguard
Mechanisms, and yet there are even greater demands
on tariff reductions and market access in developing
countries. At the same time, there is still little
progress on disciplining the Blue Box, capping the
Green Box or firmly eliminating export subsidies.
The balance of gains and losses is clearly on
the side of the trade superpowers of the North,
particularly the United States. On top of this,
developed countries rejected the demand of the West
5
African cotton producers that the elimination of cotton
subsidies and compensation for damages to their
production be treated as a separate, stand-alone item
of negotiations. Instead, the issue would be subsumed
under the general agricultural negotiations,
thus guaranteeing that its resolution would be
hostage to progress in these talks. This underlined
how eliciting even the slightest concession on an
issue that involved such manifest injustice was
next to impossible, even if that item had been a
central factor contributing to the collapse of the
Cancun Ministerial. (3)
(B) RATCHETING UP THE PRESSURE
IN SERVICES
(See Section 3, Part 2 of The Derailer’s Guide to the
WTO for further details)
The Framework Agreement eliminates the room for
manoeuvre of developing countries in the negotiations
on the General Agreement on Trade in Services
(GATS), which were previously pursued on a separate
track from the Doha Round negotiations. (5) By
formally including them in the Doha Round, thus
effectively making them part of the “single
undertaking,” the Agreement increases the pressure on
developing countries to open up their services.
Indeed, the text calls for governments to submit initial
or revised offers of services to be opened up by May
2005. To date only about 92 developing countries
have submitted offers owing to technical difficulties
assessing which service sectors to open up owing to
great uncertainty as to how liberalization would affect
these sectors. (6)
By formally tying the services negotiations to
the negotiations in other areas, the Framework allows
the EU and US, in particular, to hold the negotiations
in agriculture hostage to the services negotiations,
and vice versa, by conditioning their “concessions” in
one area dependent on their gains in the other.
With 50 per cent of the GDP of developing
countries now accounted for by services, access to
this market is the dominant concern of the Framework.
At stake is the privatization of public services (such as
energy and education) and the commons (such as
water) by foreign owned multinationals. Under GATS,
governments are effectively prevented from exercising
national control over these companies and would
therefore be unable to regulate prices, ensure universal
coverage of services or oversee labour standards.
Such policies and practices will be locked by GATS
and will not be able to be changed, even where they
negatively impact upon the population or the
economy.
Under current proposals, any commitments to
liberalisation in Mode 4 (presence of natural persons
abroad to supply a service) appear to be limited to the
temporary movement of skilled professionals. There is
also ambiguity and a lack of predictability with respect
to the current offers. (7)
Developed countries, led by the European Union
(EU), are now proposing a “benchmark” approach to
speed up the negotiations. This new approach aims to
identify 10 key sectors in the GATS, from which
developing countries will be asked to choose 6-7
sectors in which they must make minimum
commitments on. This process, known as
benchmarking, would remove any flexibilities under
the existing request-offer model, and enforce the
reduction of tariffs on commercially sensitive
industries vital for development.
This accelerated and binding process may be the
death knell for public services.
(C) NON-AGRICULTURAL
MARKET ACCESS AND THE SPECTER
OF DE-INDUSTRIALIZATION
(See Section 3, Part 3 of The Derailer’s Guide to the
WTO for further details)
The give-no-quarter posture of the trade superpowers
was evident as well on the issue of market access for
non-agricultural commodities (“non-agricultural
market access” or NAMA).
The agreement on NAMA, and subsequent
proposals by the US and EU, are based on the so called
“Derbez Text” floated during the Cancun
ministerial (named after the Mexican Secretary for
Foreign Affairs Luis Derbez, who was chairing the
ministerial), which was rejected by many developing
countries.
The key reasons for the rejection were a nonlinear
formula for tariff reduction, sectoral negotiations,
and weak special and differential treatment. The
non-linear formula, notes UNCTAD, would require
“deeper cuts for higher tariffs,” so that it “would result
in greater tariff cuts for many developing countries
because they generally maintain higher bound tariff
structures.” (4) This would be contrary to the provision
of “less than full reciprocity” for developing
countries under the principle of Special and
Differential Treatment. Despite this concern, the July
Framework provides for continuation of work on a
non-linear formula.
Developing countries with already relatively low
tariffs on non-agricultural products also expressed
concern over the “sectoral initiative” that proposed
deep tariff cuts on 100 per cent of all categories of
6
imported commodities falling under a designated
industrial sector such as, for instance, “electrical and
electronic products” or “textiles and garments.” As
UNCTAD has noted, “Many developing countries and
LDCs have already liberalized unilaterally, including
under structural adjustment programs, and thenapplied rates are often low. Binding those rates close
to applied rates may thus limit their policy space for
industrial development purposes.” Indeed,
deindustrialization, which began under structural
adjustment programs, is feared to accelerate under
NAM A. On the other hand, the US National Association
of Manufacturers saw the July Framework’s
provisions on NAMA as “a huge accomplishment, and
a big win for the WTO, the United States, and the
World economy. The really big accomplishment is that
all countries have accepted the principle of big tariff
cuts and sectoral tariff elimination.”
NAMA, together with agriculture (AoA). may be
the deal breaker at the WTO in December. There is still
a lack of consensus over a number of issues including
the tariff reduction formula, the binding of tariffs, the
status of the July Framework text and acceptability of
the so-called Pakistan compromise. At the same time,
there are disturbing signs of convergence as we
approach Hong Kong.
3. PLACING THE DEVELOPMENT AGENDA
ON THE BACKBURNER
Like the Doha Declaration of 2001, the July Framework
and on-going negotiations in the lead up to Hong
Kong, give short shrift to the main concerns of
developing countries:
Patenting under TRIPS. There are outstanding
issues related to the Trade Related Intellectual
Property Rights Agreement (TRIPs) such as the
revising Article 27.3 (b) to prohibit the patenting of
life; the relationship between TRIPs and the Convention
on Biodiversity; and the protection of traditional
knowledge and folklore. However, there is simply an
affirmation in the July Framework to move ahead in the
negotiations with no specific goals, except for members
to submit new or revised offers by May 2005.
Neither are there guidelines to revise TRIPs Article 31
(f) to institutionalize the Doha Declaration’s putting
public health concerns over intellectual property
rights.
Special and Differential Treatment. The
institutionalization of Special and Differential Treatment,
a key principle of development, remains as
distant as ever, with the Framework simply providing
for work to continue to outstanding issues. The
reason for the lack of movement here is that “developed
countries refuse to make Special and Differential
Treatment (SDT) operational and effective until the
more advanced developing countries are graduated out
of SDT. This premise is fundamentally flawed, as all
developing countries need special and differential
treatment, given widespread poverty and the need to
protect infant industries in the developing world?
Denying them SDT would amount to kicking away the
ladder.” (8)
Implementation. Implementation has been a
burning issue for most developing countries owing to
the cumbersome process and, for many, high costs of
making their trade policies, regulations, and laws
“WTO -consistent.” Yet the July Framework does not
mention any implementation issue of significance to
the developing countries. In contrast, the only
implementation issue explicitly addressed is one that is
of concern mainly to the developed countries: the
extension of additional protection on geographical
indications (GI) on commodities other than wines and
spirits.
4. PROCESS: INTIMIDATING AND
OUT-MANOEUVERING THE SOUTH
How could such an Agreement come about after
Cancun, when the developing countries appeared to
have come some way towards altering the balance of
power?
The answer is by regaining control of the
negotiating process via divide and conquer tactics,
unfair negotiating tactics, and, most important, an
institutional coup. As Oxfam International saw it, “The
[July 2004] Council meeting was... characterized by a
non-transparent, non-inclusive process, dominated by
big trading powers and characterized by brinkmanship
and power play.” (9) The lesson: the procedures of the
WTO are heavily weighted against the South.
(A) DIVIDING AND NEUTRALIZING THE G20
The G20 formation of big developing countries “broke
the monopoly over trade negotiations formerly
enjoyed by the US and the EU,” according to Brazilian
Ambassador Clodoaldo Hugueney during the Mumbai
Social Forum in January 2004. The G20 was not alone,
however, with the G33, which was formed mainly by
smaller agricultural countries, and the G 90, which
formed in opposition to the new issues, playing
important roles. (10)
Initially, the US response was to pursue a
unilateralist course outside the WTO via a dual
strategy of sewing up bilateral and multilateral free
7
trade agreements, while at the same time destroying
the G20. (11) By the?spring of 2004, however,
Washington’s two-track strategy was running into
trouble. The Free Trade Area of the Americas (FTAA)
that it wanted failed to materialize at the ministerial
summit in Miami in November 2003, and it also began
to realize that bilateral agreements could complement
but never substitute for a comprehensive, multilateral
free trade framework to promote corporate trade
interests. At the same time, the G20, despite the initial
defections, held firm.
To get the WTO restarted, Washington, working
closely with Brussels, shifted gears. Instead of trying
to destroy or undermine the G20, they moved to make
its leaders, Brazil and India, a central part of the
negotiations in agriculture, which was the key obstacle
to any further moves at liberalization. Thus was formed
in early April the informal grouping called the Five
Interested Parties (FIPS or G5), composed of the US,
EU, Australia, Brazil, and India. The ostensible aim of
this move was to organize the discussion with close to
100 developing countries’by having India and Brazil
“represent” them. The FIPS, jn short, was intended as
some sort of Green Room, exdept the representation of
developing countries in it was far more limited than in
the regular Green Room. It was in close consultation
with this exclusive grouping that WTO Agriculture
Committee Chairman Tim Groser produced the proposed
agriculture text of the July Framework.
The US-EU strategy was apparently to bring
Brazil and India into the core group of the negotiations,
and then accede to these countries’ core
demands in order to detach them from the rest of the
developing countries.
India. The key concern for India was to avoid the socalled
“Swiss Formula” for cutting tariffs that would
require deeper cuts on its highest agricultural tariffs
relative to other tariffs, something on which it saw eye
to eye with the European Union. According to one
developing country negotiator, India’s main focus for
the General Council was protecting its tariffs and it
was not going to push hard on the issue of eliminating
agricultural subsidies so as not to endanger the
EU’s support for its position on tariffs. (12) Both the
EU and India were comfortable with a “Uruguay
Round” approach to tariff cuts that would focus on an
average cut across all agricultural lines and not
“discriminate” against their highest agricultural tariffs.
Such a formula, they felt, would allow them to
maintain tariff levels that would be high enough for
their most protected commodities to survive another
round of cuts. There were developing countries,
however, for which even a Uruguay Round approach
would be too drastic, for example Honduras, Sri Lanka
and Indonesia.
Brazil. For Brazil on the other hand, removing
agricultural subsidies Was its concern, and here it got
its way-or thought it did. The final text affirmed the
phase-out of export subsidies as well as certain
categories of export credits. The big winner with the
phase-out df subsidies is Said to be Brazil, with some
estimates placing its gains as some $10 billion.
According to Brazilian Foreign Minister Celso Amorim,
the July decision marked the “beginning of the end” of
export subsidies. Yet, as noted earlier, the Brazilian
“gains” are nbt secure unless locked in by the
modalities of the negotiations. A specific end-date for
the elimination of export subsidies will only be
clinched in the next phase of discussions. Moreover,
even when elimination has supposedly taken place,
the EU has been known to replace export subsidies
with indirect export subsidies by, way of direct
payments to farmers under the Green Box. This is, in
fact, the intention of the current Common Agricultural
Policy (CAP) reform. Furthermore, the framework left
untouched the Green Box, which houses up to 70 per
cent of US’ total subsidies. Even the most optimistic
analysts cannot say for certain that overall levels of
support from the two agricultural giants will be
brought down. In fact, it is predicted that subsidy
levels will be maintained if not increased.
It was not that India and Brazil were not sensitive
to the demands of other developing countries. In
fact, they were given high marks for consulting the
different developing country groupings. It was simply
that by becoming central actors in the elaboration of
the proposed framework, they had put themselves into
art impossible situation. And the more meeting their
own interests began to diverge from a strategy of
promoting the interests of the bulk of the developing
countries, the more they trumpeted the claim that the
July Agreement on agriculture was a victory for the
South. It is testimony to the prestige of India and
Brazil among other countries in the South that it was
only belatedly, a few weeks after the July Accord, that
the reality began to sink in among many developing
countries that they had been out-manoeuvered.
With a framework agreement on agriculture—the
most decisive negotiating area for most developing
countries—in place, the trade superpowers rode the
momentum to pressure developing countries into
agreements on NAMA, services, trade facilitation and
other areas.
8
(B) WILY NEGOTIATING TACTICS
In addition to veiled threats and power plays, a wily
negotiating strategy on the part of the EU and the US
was another reason.for the developing Country
setback. The moves of the trade superpowers were
calculated to put the developing countries on the
defensive. Often, working together in a coordinated
fashion, they had the negotiating advantage vis-a-vis
a much larger set of countries whose many interests
had to be reconciled with much effort into common
negotiating positions. One example of the
Washington’s skillful exploitation of its negotiating
advantage was its strategy on the Blue Box in the
agricultural talks. To get a new, expanded Blue Box,
Washington distracted the developing countries’
attention by putting forward the demand that they
reduce their de minimis domestic supports (that is, the
allowable rate of subsidization of their production).
Thrown on the defensive, these governments spent so
much energy justifying their subsidies that they were
only too relieved when the US stepped back to
compromise on the issue in return for their agreeing to
the expansion of the Blue Box. Similarly, just before
the General Council meeting, the European Union
suddenly introduced the proposal for “sensitive
products” to protect some 20-40 per cent of its products
from significant tariff cuts. Worried that the EU might
put blocks to their demand for protecting “special
products” or commodities essential to their food
security, the developing country negotiators
acquiesced.
(C) INSTITUTIONAL COUP
But probably the most important process or procedural
victory registered by the trade superpowers was to
shift the effective locus of decision-making from the
ministerial to the General Council -though this was, of
course, accomplished with the support of influential
governments such as India and Brazil.
After the collapse of the Cancun ministerial, the
developed country governments apparently realized
that the ministerial, the prime decision-making
mechanism of the WTO, is also its key point of
vulnerability. The WTO Consensus rule-a process that
has been managed by the so-called Quad, composed of
the US, EU, Japan, and Canada —works best in
smaller, more non-transparent settings. (13) In a larger,
more open meeting, it can become a disaster.
Ministerials, the trade superpowers realized,
invite a debacle for several reasons:
■ They attract citizens and ditizens’ groups,
thus subjecting negotiators to popular
pressure.
■
They ensure the presence of the press, thus
forcing the proceedings to be less non
transparent than usual.
■ They highlight the contradiction between
formal sessions, which are reserved for
speechmaking, and informal meetings where
the real decisions are made, thus exposing
the organization to the charge of being non
transparent and non-democratic.
■ They bring representatives of national
governments, such as trade ministers and
environmental ministers, many of whom are
more sensitive than Geneva-based
negotiators to popular pressure and are not
socialized into the Geneva culture of
negotiations.
The interaction of these elements produced the
collapse of the third ministerial in Seattle and the fifth
ministerial in Cancun, with the role of civil society
mobilizations being clearly most decisive in Seattle.
The absence of one vital element-civil society
mobilizations- in Doha, Qatar, contributed to a
manageable, successful ministerial that was a disaster
for the developing countries. (14)
Learning from Doha, the trade superpowers, with
the acquiescence of influential countries like India and
Brazil, manoeuvered to push the General Council,
which meets in Geneva, to make the major decisions
that traditionally belonged to a ministerial. The
Council meeting in Geneva at the height of summer
consisted mainly of professional negotiators and other
governmental representatives of non-ministerial rank.
Indeed, there were said to be only around 40
ministerial level representatives out of 147 present.
Equally important, there was but a sprinkling of civil
society organizations, and those who were present were
prevented from demonstrating by the Swiss police.
Many of them were also banned from being present at
the WTO proceedings, thus severely restricting their
interaction with delegates. In a very real sense, then,
the July General Council meeting was an institutional
coup, one that could provide a precedent for future
decision-making. UNCTAD warns that Hong Kong
may be transformed into a ‘stocktaking session’. (15)
5. A DERAILMENT STRATEGY FOR HONG
KONG
A) NO DEAL IS BETTER THAN A BAD DEAL
The dynamics of the July Framework make it highly
unlikely that the developing countries will get a
ministerial decision which would serve their interests.
The psychological war that was so prominent in the
lead-up to the July Agreertient is again in motion in the
9
<
lead up to Hong Kong. Already, developed country
groups have warned that unless the poorer countries
make better offers on their services, “Hong Kong will
fail.” (16) Likewise, at a recent meeting in Mombassa,
Kenya, developing country demands for movement on
Special and Differential Treatment met with the same
response: the more advanced developing countries
should be graduated out of SDT. (17) But on 1
1
November 2005, the G33 appeared to stand firm that SP
and SSM must be included with the same level of
specificity as the other areas of market access pillar.
Also, there is as yet no sign that the EU is prepared in
Hong Kong to set a specific date for the ending of
export subsidies. (18) At the same time, France is
questioning the EU’s capacity to negotiate tariff and
subsidy reductions on its behalf, and is threatening to
veto EU proposals, And the US has reiterated that it is
no mood to make concessions on Mode 4 of GATS.(19)
The US-EU “psywar,” unfortunately, is taking
its toll on the South. Instead of standing up to
pressure from the North, the G20, in its final
declaration after its meeting in New Delhi on the
third week of March 2005, stated that an agreement
on modalities in the Hong Kong ministerial must be
compatible with the July Framework and in line with
the Doha Declaration; that negotiations on agriculture
must be “intensified to stimulate progress in all
other areas of negotiation” (a persistent demand of
the EU and US); and that a first “approximation” of
modalities must be ready for the General Council
meeting in July 2005.
With little chance of getting a conclusion to
the Doha Round that would be beneficial to the
interests of developing countries, the only viable
strategy is to prevent a ministerial agreement that
would simply perpetuate the inequities of the
current system. In Cancun, the developing countries
and civil society ultimately came around to the
position that no deal was better than a bad deal.
With the July Agreement already serving as a
framework for the Hong Kong Ministerial document,
a strategy to derail the Ministerial is even
more valid today. No deal is better than a bad deal
since the only possible deal is one that would
further consolidate the underdevelopment,
marginalization, and immiseration of the South.
In brief, here are some reasons why:
1. The Framework Agreement for Agriculture is
nothing but a massive dumping enterprise aimed at
developing countries that will exacerbate the
massive displacement of small farmers taking place
under the current Agreement on Agriculture.
2. NAMA (Non-Agricultural Market Access) is a
prescription for the deindustrialization of developing
countries, increased unemployment, and bankruptcy
of small, medium, and even big national enterprises.
3. The July Framework creates unwarranted pressure
fon developing countries to open up their services to
<transnational corporate control.
4. Trade facilitation negotiations are mainly the
opening wedge for the other, more threatening new/
Singapore issues (investment, competition policy,
government procurement)
5. The July Framework and subsequent negotiations
prioritise the agenda of the developed countries and
disregards the primary concerns of developing
countries, which are special and differential treatment
and implementation issues.
(B) NO TO A “STOCK-TAKING MINISTERIAL
If derailing the ministerial is the key strategic objective,
then it is important first of all to make sure that the
ministerial is a decision-making ministerial and is not
converted by the developed countries into a stocktaking
exercise whose input would feed in to a General
Council Meeting like the July 2004 meeting. This
danger must not be underestimated since, as noted
earlier, the big trading powers have become paranoid
about the way large mobilizations can interact in
unmanageable ways with the postures of the developing
countries at the height of negotiations.
(C) PREVENTING CONSENSUS
Assuming that the ministerial remains a decision making
ministerial, the movement must focus on the
key point of vulnerability of the WTO decision-making
process: the consensus rule. Concretely, it will mean
preventing consensus from emerging either before or
during Hong Kong in any of the key negotiating areas.
The earlier gridlock can be brought to prevail in the
negotiations the better it will be for the developing
countries.
6. TAKING STEPS TO DERAIL HONG KONG
Derailing the ministerial will be a complex operation
that will involve articulating mass campaigns at the
national level and Geneva-based lobbying and
mobilization leading up to coordinated lobby work and
mass mobilizations in Hong Kong and elsewhere
durirtg the mid-December ministerial.
(A) LOBBYING YOUR WTO TRADE
DELEGATION
Much of this work can take place by lobbying your
WTO trade negotiators based in your capitals or in
Geneva.
10
• Pressure Brazil'and India not to take any more
unilateral initiatives and to carefully coordinate
their moves not only with other members of the
G20 but also with other blocs, such as the G33
and the G90. India and Brazil should be pressured
to leave FIPS (Five Interested Parties) and
pyt pressure on all parties (e.g., G20 and EU) to
dissolve FIPS. To achieve this, other developing
countries should be encouraged to openly speak
up against FIPS as the main negotiating forum
for the agricultural interests of all developing
countries. This is rather urgent since the FIP
process has resumed following the mini-ministerial
in Kenya in early March, with much the same
dynamics. As a TIP/IATP update on events in
Geneva warns, the process has dangerous
implications not only for the agricultural negotiations:
“Some sources in Geneva say this type of
process-possibly with the addition of a few more
key cduntries-is considered as a possible model
for other areas' of negotiations, such as NAMA.
This approach to negotiations shows the
continued tendency for WTO Members to
conduct negotiations that claim to be on behalf
of everyone, yet only reflect the interests of the
biggest powers.” (20)
• Pressure the G20 to push a strong collective stand,
especially against the Agriculture Framework and
NAMA.
• Pressure G33 to strongly protest and resist efforts
by the EU to impose the category of sensitive
products and expose the lack of real commitment of
developed countries to special safeguard mechanisms
and special products.
• Pressure G90 especially to stymie negotiations on
trade facilitation by portraying this as really an
opening wedge for other, more threatening new
issues.
•Raise the process and democracy issue strongly by
denouncing the General Council as usurping the
functions of the Ministerial. Denounce and oppose
efforts to make Hong Kong a “stock'taking”
session rather than a decision-making session.
• Oppose the holding of more “mini-ministerials”
and other informal decision-making processes.
Justified as necessary to facilitate the negotiation
process, WTO mini-ministerials, where a few
handpicked countries are invited to attend, are
informal processes that have actually been used
to undermine the formal decision-making process
of the WTO based on majority rule. Not surprisingly,
mini-ministerials are often used to reach
decisions unfavorable to the South. (21) Already,
in 2005', mini-ministerials have been held in
Davos, Switzerland, in late January, and
Mombassa, Kenya, in early April. A miniministerial
on NAMA is slated for Tokyo on April 10 and another
for Paris on May 3-4. Also to be opposed are informal
group decision-niaking meetings such as “Senior
Officials Meetings” (SOM), one of which will be
hosted by Canada in Geneva on April 18-19, where
about 30 countries are expected to attend.
This proliferation of informal meetings
dominated by the North reveal that as Hong Kong
approaches, the decision-making process is
becoming more informal and non-transparent to
conceal the escalation of pressure on the developing
countries to make concessions.
B) NATIONAL MASS CAMPAIGNS ’
At this level, the priorities should be to:
•Expose the transnational corporate agenda behind
the agreement on agriculture (AOA), NAMA, and
GATS.
• Concentrate on building up comprehensive national
mass campaigns against the July Framework. This
will mean getting?NGOs working on the WTO to
work more closely with trade unions, farmers’
groups, and other social movements.
• Create or consolidate lobby work on legislators and
trade bodies, and coordinate this with national
mass campaigns.
’
• Coordinate national level lobby work and national
mass campaigns with pressure work on government
negotiators in Geneva at critical junctures.
• Work closely with media in order to get them to
report more critically on WTO processes.
C) HONG KONG, D-DAY, 13-18 DECEMBER
2005
Hong Kong must be seen not as the start but as the
culmination of an international process that began
months before.
As in Cancun, numbers will make a difference.
Thus no effort must be spared to draw thousands of
demonstrators from all over the world, but particularly
from North and Southeast Asia and from Hong Kong
itself. Mobilizing the numbers for Hong Kong must
be a central part of the agenda of the national mass
campaigns, especially those in Northeast and Southeast
Asia. Mass demonstrations should be staged in
other parts of the world, along with acts of civil
disobedience, and these actions should be synchronized
with the Hong Kong actions.
I
11
We must prepare not only for demonstrations
and teach-ins but also for massive civil disobedience.
In this regard, organizers must be prepared to appeal
to Hong Kong authorities’ rhetoric about respecting
individual and civil rights to create maximum space for
different varieties of mass action. Drawing from the
successful tactics of the Our World is not for Sale
(OWINFS) network in Cancun, there must be effective
but flexible coordination of lobby strategy within the
ministerial, civil protest within the ministerial premises,
and mass protests and civil disobedience outside the
ministerial meetings.
The Hong Kong People’s Alliance on the WTO
is the coordinating center for major activities.
Broad unitary coordination with tactical
flexibility should be the principle of the mass/lobby
actions.
7. DON’T FORGET THE SECOND FRONT
i
I
J
I
While making the Hong Kong ministerial a major
objective, we should not lose sight of the fact that the
WTO is one of two fronts where the trade superpowers
are pursuing their trade liberalization agenda. The
other is regional and bilateral agreements such as the
Free Trade of the Americas and the US-Thailand Free
Trade Agreement. The trend is disturbing. There are
215 regional trade agreements in force today and the
number is expected to exceed 300 by 2007. (22) Many
of these are North-South RTAs where “negotiations
tend to result in deeper market access and higher
regulatory standards than negotiations at the multilateral
level.” (23) Thus’even as we focus on the WTO,
we must not let down our guard against developed
country initiatives to corral developing countries into
FTAs and RTAs. At the same time, we should not be
fooled into believing that the WTO is more acceptable
than FTAs and RTAs because it is a multilateral forum
with “universal rules” that every country, big and small,
is supposed to comply with. If recent US and EU
diplomacy is any indication, FTAs and RTAs are seen as
complementary, not contradictory to the WTO, in
pushing the interests of the trading powers. The WTO
sets an initial level of mandatory liberalization that RTAs
can build on for more thoroughgoing liberalization.
8. ALTERNATIVES
Following a derailment strategy will bring up the
inevitable question about what the alternative is.
Components of an alternative framework could be
informed by the following:
• the WTO is a relatively new organization, and
world trade functioned pretty well without a
centralized institution and system of rules before
its establishment in 1995;
• the alternative to a centralized global institution like
the WTO is not “chaos,” as the big trading powers
would like to paint it, but more space that would
enable countries to adopt diverse national strategies
that respond to the values, priorities, and rhythms of
different societies (as opposed to the neo-liberal, oneshoe-fits-all model imposed by the WTO);
• the interests of developing countries can best be
served by a pluralistic system of economic governance
in which many institutions such as the United Nations
'Conference on Trade and Development (UNCTAD),
International Labor Organization, multilateral
environmental agreements, regional economic blocs,
and a radically scaled down and disempowered WTO,
check and balance one another and thus provide
countries with developmental space”;
• regional economic blocs formed on the principle of
subordinating trade to development needs and
coordinating economic activities other than trade
while respecting the principle of subsidiarity (that
is, that production should, as much as possible, be
locally based) may be an important cbmponent of
the alternative to the WTO-centered governance of
» neo-liberal globalization.
9. CONCLUSION
The stakes are high as we approach Hong Kong.
One outcome could be that the WTO finally gets to be
consolidated as the engine of liberalization of trade
and other key dimensions of economic activity such as
investment. Another is that it unravels a third time and
becomes permanently crippled as an agent of the
global neo-liberal agenda. Hong Kong could be the
Stalingrad of the WTO, its high water mark, when the
drive to roll it back gets the upper hand and gains an
unstoppable momentum. The outcome, to a great
extent, depends on us-our determination, our strategy,
our tactics.
* This article first appeared in Focus bn Trade
#108, April 2005. http://www.focusweb.org. It is updated
as at November 2005. Focus would like to thank Aileen Kwa
and Alexandra Strickner for their assistance in the preparation
of this
*
paper.
12
Endnotes
1. C. Fred Bergsten, Director of Institute of International
Economics, Testimony before US Senate,
Washington, DC, Oct. 13, 1994.
2. Oxfam International, “Arrested Development? WTO
July Framework Agreement Leaves Much to be.
Done,"August 2004, p. 1.
3. Many civil society organizations see the problem with
the AOA as going beyond the US and EU’s efforts to
retain their subsidies. Even if the EU and US were to
do away with their subsidies, they argue, the
resulting global free trade framework would be
detrimental to smallholder peasant agriculture, which
would be forced to turn from serving the domestic
market to competing as well in the international
market. In this process, economies of scale, capital
needs, and effective market penetration would
unleash a process of concentration that would lead to
the displacement of small farmers and to
concentration of production under agribusiness.
Under a WTO framework, small farmers would also
continue to be subject to a patent regime serving not
their interests but those of northern agribusiness.
For these reasons, many farmers' organizations
such as Via Campesina no longer see the WTO as a
suitable framework within which to promote the
interests of small farmers, both ih the South and in
the North.
4. United Nations Conference on Trade and
Development (UNCTAD), "Review of Developments
and Issues in the Post-Doha Work Program of
Particular ConcernJo Developing Countries: a Post
UNCTAD XI Perspective," Note by the UNCTAD
Secretariat, Aug. 31, 2004, p. 12.
5. Alexandra Strickner, IATP, Personal Communication,
Porto Alegre, Jan. 29, 2005.
6. Estimated from UNCTAD, p. 13, and “Countries Warn
on Services Market Access, Fear Hong Kong
Failure,"Inside US Trade, Dec. 10, 2004
7. UNCTAD, p. 14.
8. Oxfam International, “One Minute to Midnight: Will
WTO Negotiations in July Deliver a Meaningful
Agreement?,” Oxfam Briefing Paper, No. 65, July
2004, p. 8
,
9. Oxfam International, “Arrested Development...,”p. 1
10. See fuller account of this in Walden Bello and Aileen
Kwa, “G 20 Leaders Succumb to Divide and Rule
Tactics: the Story Behind Washington's Triumph in
Geneva, ” Focus on the Global South website, posted
Aug. 10, 2004: http://www.focuweb.org/main/htmi/
Artcile 408.html? In fact, as Dot Keet reminds us, it
was the G 90, not the G 20, that started the walkout
that brought down the Fifth Ministerial. Statement at
Seminar on G 20, Porto Alegre, Jan 30, 2005.
11. Walden Bello and Aileen Kwa.. A longer account of
this is given in Walden Bello, Dilemmas of
Domination: the Unmaking of the American Empire
(New York: Metropolitan, 2005), pp. 179-192
12. The Indian government’s position on subsidies had •
been watered down by its informal alliance with the
EU on the tariff issue after the Doha Ministerial
before the EU abandoned the Indians to align
themselves to a common position with the US in the
period leading up to Cancun.
13. Bergsten.
'14. It must also be pointed out that there was one other
contextual factor working to the disadvantage of the
developing countries: the post-Sept. 11 atmosphere,
which the US exploited by claiming that failure of the
developing countries to move forward on multilateral
negotiations was tantamount to abetting terrorism.
15. UNCTAD, p. 7
16. “Countries Warn on Services Market Access...,”
Inside US Trade, Dec. 10, 2004
17. Washington Trade Daily, March/, 2005.
18. Owing to strong reactions from developing countries,
however, the EU may set a phase-out date before or
s during the Hong Kong Ministerial. Nonetheless, as
we have pointed elsewhere, subsidization will
continue via other channels, like the Blue Box or the
Green Box. t
19. "Countries Warn on Services Market Access...,”
Inside US Trade, Dec. 10, 2004
20. Carin Smaller, “Too Much, Too Fast: What Happened
to the Doha Development Agenda," Trade Information
Project/lnstitute for Agriculture and Trade Policy
Geneva Office, March 24, 2005.
21. See Fatoumata Jawara and Aileen Kwa, Behind the
Scenes at the WTO (London: Zed, 2003), p. 280.
22. UNCTAD, p. 19
23. Ibid.
13
The Derailer’s Guide to the WTO: Section 1§
Ten reasons why no deal
is better than a bad deal
At the 6th WTO Ministerial in Hong Kong, no deal is
better than a bad deal since the only possible deal
that can come out of ongoing negotiations is one that
would further consolidate the underdevelopment,
marginalisation and immiseration of the South. Here
are ten reasons why:
1. Dumping: A new deal would force developing
countries to open their agricultural markets further to
the entry of highly subsidized products, thereby
undercutting the prices of local produce, undermining
local livelihoods and exacerbating distress migration.
2. Domination: A new deal is about domination of
the world’s markets by the trading superpowers and
their transnational corporations, at the expense of
peoples’ rights and livelihoods.
3. Denial: Developing countries have repeatedly
called for mechanisms to protect their food security
and the livelihoods of their rural populations under the
Agreement on Agricutlure. The US and EU have
consistently denied them of these options.
4. De-Industrialization: A new deal would lead to
de-industrialization, and the killing off of fledgling
local and domestic industries in developing countries,
which will result in job losses, unemployment and
greater poverty.
5. Destruction: A new deal would force developing
countries to liberalise sensitive sectors such as
fisheries and forestry on which millions of rural
livelihoods depend. The Non-Agricultural Market
Access agreement (NAMA) would push for more
exports of fisheries and forestry products, destroying
small scale fisheries and communities.
<
6. Deprivation: A new deal would open up the
services sector to liberalisation, including critical
public services such as water, power, health and
education, limiting access to these services to only
those who can afford it and depriving everybody
By letting the Trade Related Intellectual Property
(TRIPs) Agreement remain as it is, millions of people
the world will be deprived access to essential and
saving drugs.
7. Disempowered: The General Agreement on
Trade in Services (GATS) would ‘lock-in’ countries
liberalization of services and limit the options for
developing countries to regulate these service sectors
in accordance with their development priorities. The
new proposed “benchmarking” approach in GATS
would force countries to open up sectors that they
not want to liberalize and undermine public interest
everywhere.
8. Diminished: By further entrenching the power
the rich trading nations of the North, a new deal would
aggravate the imbalance in world trade instead of
address it. This will diminish any hopes for least
developed and developing countries to have true
development.
9. Danger: A new deal would lead to more not less
WTO-plus bilateral and regional free trade agreements,
as it would set the ground for deeper and faster
liberalization. Intellectual Property Rules (IPRs) under
the WTO and WTO-plus trade agreements will deepen
threats to bio-diversity, traditional knowledge and
rights of indigenous peoples all over the world.
10. Development: And finally, no deal is better
a bad deal because there is nothing developmental
about this round and there is absolutely nothing for
developing countries and majority of the world’s
peoples to gain from this deal.
V
14
The Derailer’s Guide to the WTO: Section 3 Part 1\
Intransigence in Agriculture
Agreement On Agriculture (AoA)
What is the AoA?
The Agreement on Agriculture (AoA) is one of the
most controversial agreements under the World
Trade Organizatiom (WTO) regime. The objective
of the AoA, which came into effect in 1995, is to
reduce barriers to trade (such as tariffs, quotas and
subsidies) thereby making domestic and global
agricultural sectors more market-oriented. The rationale
is that the removal of such trade-distorting
measures will increase the volume in trade from which
all countries, including developing countries, will
benefit. Focus on the Global South however
questions the validity of this neo-liberal argument,
citing countless reports detailing the negative effects
of WTO-enforced liberalization on developing
countries and their mostly rural populations.
The AoA is anchored on three main provisions
or ‘pillars’ - Market Access, Domestic Support and
Export Competition. Negotiations at the WTO are
currently taking place in all three of the pillars, and
cover such topics as tariffs, export subsidies and
the permitted levels of support provided to farmers.
The three pillars of the AoA are: 2
Market access is the extent to which a country
regulates the importation of foreign products. The
market access provisions of the AbA aim to progressively
lower protectionist barriers to trade. The
agreement calls for the conversion of all non-tariff
barriers (such as quotas) to tariffs, in a process
known as tariffication, and the reduction of all
tariffs:
■ by 36% on average, and a minimum of 15 % per
tariff line for developed countries; and,
■
by 24 % on average, and a minimum of 10 %
per tariff line for developing countries.
Members are also directed to make concessions
liberalization through other mechanisms such as
tariff rate quotas (TRQs) and minimum access volumes
MAVs).3
The importance of this pillar lies in the ability of a
country to protect its domestic agricultural production
including essential crops such as rice and com), its
local farmers and the livelihoods of its rural
populations.
That is why many developing countries are
opposed to cuts to their existing tariffs, which in the
absence of expensive subsidies, have been their only
means to support their farmers. They are demanding
mechanisms to be established to protect them from
surges of commodity imports or a sudden fall in the
world price of commodities. At the same time, many
developing countries are also demanding greater
access to developed country markets, through the
reduction of developed countries’ import tariffs, so that
developing countries are able sell their agricultural
production overseas.
I
Domestic Support refers to monetary support given
governments to their agricultural producers either
for production, or in more general forms, such as
infrastructure and research. The AoA classifies these
supports into three boxes:
■ the Amber Box for production and trade
distorting subsidies;
■ the Blue Box for direct payments under
production limiting programmes; and,
■ the Green Box for minimally or non-trade
distorting support.
Support is also classified as either those with
ceiling levels and those without ceiling levels (caps). A
minimis clause in the agreement allows countries to
maintain a certain level of trade and production
distorting support (measured as Aggregate Measure of
Support or AMS).
1 All words in bold are defined in the Glossary included at the end of this Guide.
2 Bello, Walden and Kwa, Aileen, Guide to the Agreement on Agriculture: Technicalities and Trade Tricks Explained’,
Focus on the Global South, 1998.
3 TRQs and MA Vs are based on a percentage of volume of consumption for the base year of 1986-88. MAV is a
commitment to allow importation at a lower tariff rate called "in-quota tariff.
»
15
For developed countries this level can be up to 5
% of the value of production for both individual
products (product specific) and 5 % of the value of
total agricultural production (non-product specific).
For developing countries, support of up to 10 % is
allowed in both categories.
Domestic support is one of the most controversial
issues being negotiated at the WTO. That is
because much of the support that the EU and the US
provide to their farmers is hidden or wrongly classified
in the boxes. The result is that support, which should
be illegal or at least disciplined under WTO rules,
continues to distort trade. Developing country farmers
feel the effects of this the most, as trade distorting
domestic support depresses world market prices and
results in dumping of cheap products in developing
country markets. By shifting their support for farmers
into an (expanded) blue and (uncapped) green boxes,
the EU and US will continue to dump their products
on the developing world (see below for further details).
The Indian dairy sector under threat
from dumping
Export Competition refers to support or subsidies
that allow countries to directly support their exporters.
The consequence is that the rich developed countries
of the north are able to export goods on the world
market at prices lower than those in their domestic
markets, and often at prices which are significantly
lower than their cost of production (also known as
dumping). As Oxfam points out, the EU exports sugar
and beef at 44 and 47 per cent respectively of their
internal cost of production. Similarly U.S. wheat is sold
abroad at an average price of 35% of what it cost to
produce it and cotton is sold abroad at an average
price of 47% of what it cost to produce.4
The AoA aims to set disciplines in export
subsidies, including among others:
■ direct subsidies, including payments in kind,
contingent on export performance;
■ sale by governments or their agencies of
noncommercial stocks at prices below
domestic market prices; and,
■ internal transport subsidies for exports.
However, the reality is that developed countries
continue to dump goods on developing countries. The
latest negotiations under the July Framework do not
explicitly set a time frame for the elimination of export
subsidies.
Government of India statistics illustrate the
consequences of subsidised commodities^
■ sugar imports increased from 29000 tonnes
in 1996- 97 to 932,300 tonnes in 2004-05;
■ edible oil imports increased from 1.061
million tonnes in 1995-96 to 5.290 tonnes in
2003-04; and,
■ cotton imports increased from 29200 tonnes
in 1996-97 to 387000 tonnes in 2001-2002.
In India, the dairy sector has been hit hard by
subsidised exports from the EU. In 1999-2000 India
imported over 130,000 tonnes of EU skim milk
powder. This was the result of EUR 5 million export
subsidies that were provided to EU producers. EU
subsidies to butter exports are also extortionately high.
Consequently, butter oil import into India has grown at
an average rate of 7.7% annually. This has had a
dampening effect on prices of ghee in the domestic
market. Ironically, India is the biggest producer of milk
in the world. What is more worrying for India is there
are now signs of declining productivity growth for
many agricultural products in India, which will have
severe implications for the majority of the population.
Devinder Sharma, WTO and
Agriculture: The Great Trade Robbery,
20035
The impact of WTO induced trade liberalisation
coupled with the removal of quantitative reduction
QR) (under WTO obligations) and the reduction of
import tariffs, has resulted in the prices of several
commodities falling sharply.
For example in Kerala, since the removal of QRs
on 714 items in April 2000, most of the agricultural
commodities of Kerala have been showing a steady
decline in the market prices. The unprecedented fall in
prices of all cash crops have devastated the farmers of
Kerala.?
According to Department of Agriculture,
Government of Kerala, during 2000 the farmers of
Kerala have suffered an annual loss of Rs. 6645 croress
4 Oxfam International, A Round for Free, How rich countries are getting a free round on agricultural subsidies at the WTO,
June 2005, page 3, accessed at www.maketradefair.com
5 As quoted in the Practical Guide to the WTO for Human Rights Advocates, 3D and FORUM-ASIA, 2004, page 62.
6 Statistics from the Director General of Commercial Intelligence & Statistics, Ministry of Commerce, India.
7 The coconut price collapsed from Rs. 6 per piece in 1999 to Rs. 2 in Jan 2001. Similarly the price of coffee is down from
Rs. 68/kg to Rs. 26/kg.
8 One crore is 10 million.
16
due to the price fall of major plantation crops alone,
such as coconut and rubber, making the Kerala
economy fragile and vulnerable.
‘The large scale of farmers suicide in India in
recent years is one of the severe impacts of WTO. In last
10 years and especially since (ndia joined WTO in 1995,
more than 25000 farmers in different parts of the country
have committed suicides and it is still continuing. One of
the key reasons of the farmers’ suicide is the surge of
cheap subsidised imports of agricultural commodities.’
- Senior farmer leader, Mr. Mahender Singh Tikait
of Bhartiya Kissan Union (BKU), India.
From Doha to Cancun
Focus on the Global South called for the rejection of
the draft text for it “[the text] does not redress the
existing imbalances in the agriculture agreement. There is
no attempt to reduce domestic supports and export
subsidies, a$ called for by the majority of developing
countries and also no attempt has been made to address
concerns of small farmers. In fact, it will increase these
imbalances since it very clearly allows developed
countries to continue their subsidies and dumping, even
as developing countries are asked to take on drastic tariff
cuts!”ioThe Ministerial Meeting in Cancun collapsed
with no agreements on key areas of negotiations
including agriculture, non-agricultural market access
(NAMA - see the relevant section of this Guide for
further details) and the new issues.
WTO Ministerials take place every two years and
bring together the trade ministers from all the WTO
Revival through the July framework
member Countries to make final decisions on trade
The Doha round negotiations however were quickly
negotiations. The period from the Doha (4th) to the
revived with the forging of an agreement on a framework
Cancun (5th) Ministerial saw developing country
for the negotiations at the General Council Meeting in
priorities and demands sidelined in the interests of the
Geneva in the last week of July 2004. The negotiations
larger northern trading powers.
that produced Annex A of the so-called ‘July Framework’
At the WTO 4th Ministerial Meeting in Doha,
for agriculture were held only among a small group of
Qatar in November 2001, a new comprehensive round
five countries (Five Interested Parties or FIPS) which
of trade negotiations was launched. In agriculture, the
included the US, EU, Australia and two of the most
Doha Development Agenda (DDA) mandates ‘substantial influential members of the Group of 20 (G20) - Brazil
improvements in market access; reductions of, with a
and India.
view to phasing out, all forms of export subsidies;
The second draft of the framework was written by Tim
and substantial reductions in trade-distorting
Grosser the chairperson of the Committee on Agriculture
domestic support.’ The DDA also mandated the
based on the FIPS discussions. The second draft was then
establishment of new modalities for further
discussed by a group of around 20 countries in a green
commitments.
room process.u The outcome was a draft endorsed by the
What was labelled by some as a development
20 countries. This draft was then presented to the other
agenda, in fact turned out to be nothing more than a
WTO members. Wjth endorsement already secured from
continuation of the WTO’s liberalisation agenda.
the major players, there was intense pressure for all
The draft documents on new modalities were
members to agree to the July Framework’s terms.
circulated from February to March 2003 by the WTO’s
Agriculture Committee, which was headed at that time
What’s wrong with the new proposal?
by Stuart Harbinson. The ‘Harbinson document’ as the
The framework for the agriculture negotiations will
text came to be known was a highly bracketedp
remain focused on the three pillars - market access,
document that pushed for further market concessions
domestic support, and export competition despite the
- with tariff cuts ranging from a low of 25 % to a high
many issues and problems that have arisen since
of 60 % reductions — and the retention of domestic
Doha, and the collapse of the WTO Ministerial
subsidies in the North in the form of blue and amber
Meeting in Cancun in September 2003. These much
box supports.
broader concerns include dumping, declining commodity
The 13 September 2003 draft text on agriculture
prices, food security, livelihoods, and rural development.
was heavily criticized during the 5th WTO Ministerial
WTO orthodoxy is that all of these (pillars) must
Meeting in Cancun.
be cut - despite a decade of evidence that the model
9 In WTO negotiations, the number of brackets in a document indicates the level of disagreement between negotiators.
10 Focus On The Global South: Call On Governments to Reject Agriculture Text, September 2003 Press Release.
11 A green room process refers to informal discussions among a select number of WTO members. Such processes have
been criticised because they are exclusionary (particularly towards developing countries) and unaccountable.
12 Murphy, S. A "Truly Historic" Trade Agreement: Analysis of the Institute of Agriculture and Trade Policy. August 2004.
17
of agricultural ‘liberalization’ supported by these
“pillars” has been disastrous for farmers and rural
development everywhere. 12
Despite the Special and Differential
Treatment (S&D) rhetoric in the Doha Declaration,
the AoA remains one of the most iniquitous
agreements in the WTO, in effect providing special and
differential treatment to developed countries rather
than developing countries. The promised benefits from
agricultural liberalization and subsidy reduction in the
OECD countries under AoA have not been fulfilled. 13
A number of issues put forward by developing
countries on inter-linkage mechanisms (to allow
flexibilities for adjustments on tariff levels as a means
of protection against subsidized imports), cotton, and
special products (to protect food security, livelihood
security and rural development) among others have
been included in the framework. The inclusion of these
sections is an attempt on the part of the WTO
Agriculture Committee to reflect the demands made by
developing countries in negotiations prior to Cancun.
Like many other demands from developing countries
however, the sections which would potentially favour
developing countries remain vague and without any
detail on clear commitments or ways to move forward.
On market access the objective of the
negotiations is to realize substantial improvements in
market access based on the following principles: [1]
tariff reductions will be made from bound rates, [2]
each member (other than LDCs) will make a
contribution, and [3] progressivity in tariff reductions
will be achieved thrpugh deeper cuts in higher tariffs
with flexibilities fry; Sensitive products. Substantial
improvements in market access (meaning tariff
reductions) will apply to all products, w
The framework mandates the use of a single
tiered formula approach for market access, but in
different bands. Tariff reductions would have to be
applied on the bound rates (something to benefit the
rich nations). Many of the issues about the number of
bands, percentage cuts for each bands, and tariff caps
remain under negotiation.
Like many other provisions in the framework, the
one on sensitive products will hurt developing
country interests twice over. First, the text recognizes
and gives a go-ahead signal for developed countries
to protect “sensitive products”, meaning rich nations
would also be given the flexibility to protect some
products that are deemed sensitive while calling for
tariff quota expansion and tariff reduction on all other
products including products of interest to developing
countries
In the area of Special Products for developing
countries, there are no details given, which the SP
group have been calling for - such as self-selection on
the basis of stated criteria and no tariff reduction. This
discussion has evolved over 7 years - from the
development box (positive list) to the negative list
approach, to strategic products and now Special
Products. The original recommendations have been
diluted each step of the w^y. Developing countries
have shown great flexibility in their proposals
regarding Special Products, but to date have not
received anything in return. 15
On domestic support, the section at first
glance appears positive in favor of realizing substantial
reductions in the huge trade distorting domestic
support provided by developed countries to their
agriculture 16. But what this tiered formula actually
does is:
■ expand the definition and scope of blue box
subsidies; and
■ redefine the overall base of all trade distorting
domestic support - to include the Final Bound Total
AMS, the permitted de minimis level, and the level
agreed for Blue Box payments—upon which
reductions will be based.
Furthermore, the text actually forces
developing countries to reduce their de minimis levels
of support which now stands at 10 percent of total
agricultural output.
The expansion of the Blue Box category legitimizes
the box-shifting tactics of the United States
US). The US has been demanding an amendment to
the blue box provision to allow it to continue its
counter-cyclical payments to its farmers under the
notorious US Farm Bill of 2002. This redefinition will
allow the US to shift some $9-10 billion from the
Amber Box to the Blue Box. Since the US has
currently no subsidies in the Blue Box, the agreement
thus gave the nod for the US now provide support
under the Blue Box to levels up to 5 % of agricultural
production value of period to
13 Fatoumata J. and Kwa A. (2003) Behind the Scenes at the WTO: The real world of international trade negotiations,
London: Zed Books. Pp 26-27.
14 Raghavan C. Agriculture Annex contrary to some understanding. South North Development Monitor (SUNS #5627)
August 2004.
15 Kwa. Aileen. WTO Vehicle: A Catastrophe for Development. 30 July 2004
16 Estimated at around $320 billion.
18
be established. The EU makes significant use of the
blue box subsidies!?, above the proposed 5% limit, but
has already planned to transfer a large part of these to
the Green Box, and therefore should be able to meet
the target without effectively reducing the level of
support it provides to its farmers.is
bands and percentage cuts are prescribed per band.
A proposal from the G20 however is now being
touted as the compromise formula and the starting
point for continued negotiations. The G20 proposal
incorporates the “banded” approach of a Uruguaytype
formula with the ‘harmonizing’ effect of a simple
Swiss formula by subjecting products in the higher
Far from moving towards substantial reduction
bands, meaning those with higher initial tariffs, to
of subsidies, the framework actually provides a
higher cuts than those in the lower-bands. Tariff caps
cushion to the US and EU to raise farm subsidies from
would also be imposed to address the issue of tariff
the existing level.
peaks, so that no tariffs would be higher than 150 per
On export subsidies, the section does not
1 cent for developing countries and 100 per cent for
prescribe clear end dates for elimination of these
developed countries. The G20 compromise formula
subsidies. The framework prescribes only that
however would undermine the interest of many
commitments and disciplines will be implemented
developing countries that still maintain relatively high
according to a schedule and modalities to be agreed. It
tariffs and countries that maintain a uniform tariff
goes on to state further that commitments will be
structure for most if not all of its products. The
implemented by annual instalments with equivalent
banded approach would force these countries to and parallel commitments by Members.
drastically and uniformly reduce all their tariffs.
With the removal of QRs and protection of
Negotiations update
special safeguard mechanisms not available to every
In agriculture, which clearly remains the key area of
developing country, a further reduction and binding of
negotiations and on which progress on negotiations in
tariff at the lower rate would be detrimental to the
the other areas are hinged, the debate is over the level
agricultural based economies of the developing
of ambition of proposed tariff reduction formulas and
countries like India.
clear schedules for the elimination of domestic support
and export subsidies.
On the areas of Special Products and the
October 2005 witnessed a series of proposals
Special Safeguards Mechanism, which are of
submitted by the US, EU, G20, G33, ACP countries
interest to developing countries, the G33 (see the
before and after the General Council in Geneva to
GGuide) is calling for greater flexibilities for developing
speed up the AoA negotiations. However the US and
countries in the name of rural development, livelihoods
EU have made their offers conditional on the progress
and food security. There are however unrelenting
in liberalisation of manufacturing and services sectors.
efforts on the part of developed countries to limit the
In exchange for its trivial offers in agriculture, they
scope and effectiveness of any SP/SSM provisions.
have placed extremely heavy demands on developing
On 1st November 2005, the G33 warned the Chair of
countries to open up their markets under industrial
the WTO General Council Ambassador Amina Mohamed
tariff and services.
of Kenya, the WTO Director-General Pascal Lamy and
This would be contrary to the Doha round, and
the Chair of the agriculture negotiations Ambassador
of significant concern to developing countries who
Crawford Falconer of New Zealand that for the G33, “it
maintain that these negotiations should remain
would be difficult to agree on any text where the issues of
separate.
SP and SSM are not given the same level of specificity as
On the tariff reduction formula, the US is
others in the market access pillar.”
pushing for a more ambitious formula that would
“harmonize’ tariff rates among countries. This
The negotiations on the elimination of domestic
harmonizing formula or the simple Swiss formula
support have barely moved at all, with the US remaining
would deal deeper cuts to products with higher tariffs.
firm on maintaining its huge subsidies to its
This could be disastrous for developing countries with
farmers contained in the US Farm Bill of 2002.
hightariffs, as the formula would require more drastic
While there remains no clear timetable for the
reductions to their level of protection. The EU on the
elimination of export subsidies, the EU has hinted of a
other hand wants a less ambitious “Uruguay Round”
possible date for the phase-out of its export subsidies.
type formula where tariff rates are categorized into
The EU’s announcement of this possible date might
17 The EU has Blue Box subsidies amounting to Euro 14.31 billion.
18 Khor, M. Preliminary comments on the WTO’s Geneva July Decision. Third World Network.
I19
just cause movements in the other pillars of the
agreement.
In short, while the negotiations for a new agreement on
agriculture appear to be stalled at the moment, the
possibilities for movement and therefore another
lopsided agreement in favor of developed countries
before or during Hong Kong remain firmly on the
table.
In view of the plethora of proposals on Agriculture,
it is extremely important for the developing
countries to evaluate them with great care. They
should not let this exercise turn into a mutual
forgiveness between US and EU for extraction of
concessions from them in industrial tariff and services.
The developing countries must do their best to protect
the food sovereignty of their people and interest of
their farmers in the forthcoming negotiations at the 6th
Ministerial in Hong Kong in December 2005. As aptly
put by a leading farmer leader of the Via Campasina
from India, Chukki Nanjundaswami who demand the
removal of agriculture from the purview of the WTO
because ‘agriculture is too important to leave at the
mercy of rich nations’. 19
PRESSURE POINTS
1. The US-EU disagreement on
subsidies and tariff reduction
The EU and US have unveiled their WTO “offers” with
much fanfare. It looked as if huge concessions to the
developing world had been made. In reality, the same
game of box shifting and creative accounting, as was
the result of the Uruguay Round, has once again been
reproduced, only this time, with a much higher price
demanded of developing countries.20
The US proposal has prompted a response from
the EU that has caused quite a stir among Members of
the European Union. France has threatened a veto on
further concessions on tariff and subsidy reductions
which would have an impact on their farming sector.
Peter Mandelson, the EU Trade Commissioner has
been put in the hot seat with France questioning
whether the “final offer” that he made on behalf of the
EU to reduce farm tariffs by 60 % and eliminate farm
subsidies is too much and whether he has the authority
to make such an offer.
We should:
■
DERAILING the AOA
Focus on the Global South’s strategy is to derail
the WTO by actively preventing consensus in WTO
negotiations. The aim of the Derailer’s section is to
highlight where there is that lack of consensus and to
suggest ideas and strategies for promoting disaccord
among WTO country members.
How do we prevent consensus
in agriculture?
To prevent consensus we should continue to exert
pressure on the most vulnerable points or the cracks in
the negotiations. In agriculture the critical issues to
exploit are the formula for tariff reduction, the
modalities and timeframes for the elimination of
domestic support and export subsidies, including the
controversial blue box expansion, and sensitive issues
like cotton.
■
■
■
■
highlight the reality that these proposed cuts
are “paper cuts” amounting to no substantial
reduction of EU or US subsidies. It may in
fact result in expansion of support.
expose the expansion of the blue box and fhe
box shifting strategy of the US as part of their .
squid tactics to skirt around commitments to
reduce subsidies.
draw attention to the fact that there are still no
restrictions on the use of the Green Box
despite recent rulings in the WTO (like the
cotton case) that certain subsidies under the
green box are in fact trade distorting.
highlight that these “paper cuts” touted as
“bold moves” on the part of the US and EU in
order to “save the round” would in fact
perpetuate dumping.
19 Said at a massive protest by farmers in Mumbai (India) on 2nd October 2005 (Remove agriculture from WTO’s
purview’, Hindustan Times, 3rd October 2005).
20 Kwa, Aileen. ‘Analysis of US and EU Packages: No concessions, but high price demanded of developing countries',
Focus on the Global South, 16 October 2005.
21 Kwa, Aileen, Analysis of US and EU Packages: No concessions, but high price demanded of developing countries',
Focus on the Global South, 16 October 2005.
20
2. Developing countries who would
pay dearly for further tariff reductions
Whilst effectively nothing is being offered by those
that most distort agricultural trade, the US and EU are
attempting to use this occasion to extract yet more
market access openings from the developing world. A
minority of developing countries will stand to benefit
(the corporate farmers in a small number of countries)
from new market access openings, but the majority of
the developing world will not.21.
We should:
through out the developing world for greater support
and protection. What farmers in these countries need
is a respite from tariff reduction. Arguing over a new
formula is tantamount to asking whether we want a
slow or a quick and sudden death for farmers.22
3. Maximum Demands
on Special Products
The engagement with the G33 on the issue of Special
Products (SP) should be based on a maximum demand
for protection of agriculture in developing countries
on the basis of food security, rural development and
livelihood concerns. The flexibilities under the SP/
SSM provision should include exemption for further
tariff cuts, the right to impose additional duties against
subsidized imports and the right to re-instate
quantitative restrictions on certain products.
draw attention to the possible effects of
further tariff reduction on the lives of the most
vulnerable sectors in these countries.
■ plug in the numbers to show what the
proposed formula would mean to local
farmers and come up with case studies
showing the impact of further tariff
concessions.
We should:
■ highlight the plight of small farmers in those
countries whose livelihoods have already been
■ continue to put pressure on governments
devastated under a liberalized regime - such as in
within the G33 to ward off attempts by the
the Philippines, Thailand, and Indonesia which
developed countries to reduce the scope and
have already relatively low agricultural tariffs.
effectiveness of SP/SSM. Key countries here
include Indonesia and the Philippines.
The debate over the level of ambition of a new
■ keep up the pressure on their negotiators to
tariff formula misses the whole demand of farmers
oppose a new deal that would undermine food
security, rural development and livelihoods.
■
.5
22 Purugganan, J., ‘Philippines Cannot Afford A New Deal’, paper presented before the Philippine Congress, Focus on
the Global South, 31 August 2005.
21
The Derailer’s Guide to the WTO: Section 3 Pai
Ratcheting up the
Pressure in Services
General Agreement
on Trade in Services (GATS)
What is the GATS?
The World Trade Organisation (WTO) describes the
General Agreement on Trade in Services (GATS) as
‘perhaps the most important single development in
the multilateral trading system since the GATTi itself
came into effect in 1948\ The GATS is one of 18
agreements that fall within its ambit.
of individuals to a country to consume a service).
Example: Tourists traveling overseas or patients taking
advantage of cheap health-care abroad.
Mode 3: Commercial Presence (where a
foreign company sets up a subsidiary or branch within
another country in order to deliver the service locally).
Example: Foreign Direct Investment in banks,
hospitals and power plants.
The focus of the GATS is on the liberalisation
and deregulation of the services sector. The scope of
what is defined as services is deep; over 160 services
sectors fall under its jurisdiction. Almost no service
sector is excluded. It includes basic services such as
water, education and health. It also covers
infrastructure services such as energy, transport and
telecommunications. Critical sectors such as finance
fall within its ambit. The world’s largest industry travel and tourism - is also included under GATS.
These sectors represent the era of deep liberalisation
and the next frontier for corporate-led globalisation.
The subject matter of GATS is incredibly broad as
there is yet no consensus on its coverage. According to
David Hartridge, Former Director of Services Division
of the WTO, ‘‘the push to include services within its
framework is the result ofpressure and lobbying efforts
by the USfinancial services sector The aim of the
GATS is to promote unrestricted trade in all types of
services and to remove all forms of governmental
intervention that may be viewed as “trade restrictive.”
Mode 4: Presence of Natural Persons (where
individuals travel to another country to supply a service
there on a temporary basis).Example: Software
programmers, nurses or doctors working in another
country. This is different from immigration because
GATS explicitly deals only with temporary movement.
GATS has been promoted as a “bottom-up”
treaty rather than a'“top-down” treaty since in theory
it allows governments to select which sectors they will
open up and when. This is called the request-offer
model, whereby WTO Member governments can
submit requests on which service sectors they want
another country to open up and in the offers, a
government can list which service sectors they choose
to liberalize. This model of negotiations is currently
under threat, with proposals from developed countries
requiring all countries, including developing countries,
to open a minimum number of services sectors and to a
minimum extent (see below for further details).
The GATS identifies four modes (or types) of
supply of a service:
Mode 1: Cross Border Supply (where the service is
supplied remotely from one country to
another).Example: Citibank customers in the
US get service help from a call center based in the
Philippines.
Mode 2: Consumption Abroad (movement
What does GATS mean
for developing countries?
Once a country agrees to liberalize a service sector
under the GATS, it has certain obligations from which
they cannot deviate:
1) National treatment. Once a country has fully
committed a sector to liberalisation under the GATS, it
is prohibited from discriminating against foreign
1 All words in bold are defined in the Glossary included at the end of this Guide.
22
companies and corporations that provide services in
that sector, even if such services are currently provided
domestically by public or private means. National
treatment is an extremely important commitment
in the GATS and addresses qualitative restrictions
that a government may place on service provision
in a committed sector. Concretely, this means that
governments cannot set performance requirements
specifically for foreign companies. This includes, for
example, domestic environmental or labour laws,
quality standards, obligations to hire and train local
staff, or requirements to build local/domestic capacity
in their particular areas of operation. Nor are they
required to source raw materials, goods or support
services domestically.
2) Market Access. Market access rules cover all
quantitative limits on services, whether they apply to
foreign or domestic firms. They also provide
opportunities for foreign firms to challenge domestic
regulation if these regulations are perceived as
restticting the entry of firms into domestic markets.
Once a government has committed a sector to full
liberalisation, it must provide foreign corporations
access to domestic markets through “least trade
restrictive” business and investment policies.
3) Most Favoured Nation (MFN) Status. Host
governments must provide equal market access to all
trading partners in a service sector that has been
opened up — he., they must provide Most Favoured
Nation (MFN) status to all WTO members. This means
that the national treatment must be applied
horizontally,” or across the board to service providers
of all WTO member countries. Host governments
cannot choose which foreign entities get national
treatment and which do not. Governments then, lose
their rights to develop preferential trading
arrangements for social or political reasons, or to enter
into special service agreements with regional partners.
What’s wrong with the GATS?
The GATS has proven to be one of the most
controversial of the WTO agreements and going
through it shows the many dangers that it poses to
people of both the developing and developed world if
fully implemented.
1) What was once public becomes private:
The GATS threatens public services including health,
education and water. The agreement opens up these
sectors to transnational corporations and accelerates
the process of privatizing essential public services,
thereby limiting access to services to only those who
can afford them. There are many examples of how
privatization has resulted in excluding the poor from
essential services. For example in Cochabamba,
Bolivia, the World Bank encouraged privatization of
water which resulted in water prices reaching $20 per
month, compared to the minimum average wage of
$100 per month.2 Public services and the so-called
‘commons’ including water, education, health care,
social welfare and energy, should not be subject to
multilateral liberalisation or privatization.
2) Loss of national control: Because of the
national treatment clause, governments are prevented
from exercising national regulation especially on
foreign direct investment. In some cases, governments
would have to rewrite their constitutions in order to
adhere to this. For example, the Philippines has a 60-40
regulation, which requires at least 60 percent of a
foreign company to be owned by a Filipino and a
maximum of 40 percent to be owned by a foreigner.
This will no longer be allowed under the national
treatment clause of the GATS.
3) Investment Rules: The WTO calls the GATS the
world’s first multilateral agreement on investment,
since it includes the right to set up Commercial
Presence (Mode 3 in GATS language) in another,,
country. The National Treatment clause prohibits
WTO members from treating foreign investors less
favourably than domestic service suppliers. The
clause on market access ensures effective market entry
provisions. Once countries make binding commitments
under these two clauses, GATS rules can reduce the
ability of countries to use policies that ensure equity
ceilings, obligations on technology transfer, universal
services provision (legislation that obliges private
providers in basic services such as health, education,
water to supply services to marginalised sections of
the community) and employment of local labour. The
GATS framework maximises investor rights at the cost
of development.
4) Locking bad policies into place: A
government cannot reverse a commitment made under
the GATS even if it proves detrimental to its national
economy. Developing countries are already grappling
with the adverse impacts of privatisation.
2 As a result of massive protests and public outcry, water was eventually restored to public ownership. Vandana Shiva,
Water Wars: Privatization, Pollution and Profit, New Delhi, India, Research Press, 2002.
■
23
Take the example of Telecommunications in
India. India reoriented its Telecom policy in 1994 and
argued that liberalisation and private participation
would provide the additional resources for connecting
all its villages by 1997. More than 10 years after this
there are nearly 70,000 villages without telephones.
The rural - urban divide is growing with a dismal
teledensity of less than 2 phones per 100 in rural areas.
The private players have provided only'about 14,000
Village Public Telephones and met only about 10 per
cent of their license commitments. The benefits of
liberalisation have been concentrated in big cities and
larger towns - which is only 20 percent of the country.
If the Indian government wants to provide rural
telephony it must strengthen the public provider and
improve regulations that force private providers to
adhere to social obligations.
Binding commitments under national treatment
and market access will not allow the Indian
government to use such policy mechanisms.
From Doha to now
The Doha Ministerial was responsible for fasttracking the GATS negotiations. The Doha Declaration
set dates for when the request phase of negotiations
would commence and when the offers phase would
start. To date, 92 of 148 member countries have
already submitted offers in the GATS, while all
developed countries have made offers.
Developed countries are fast overhauling this
request-offer framework, which offers some degree of
flexibility to developing countries. Developed
countries, led by the European Union (EU), are now
proposing a “benchmark” approach to speed up the
negotiations.
4
This new approach aims to identify 10 key
sectors in the GATS, from which developing countries
will be asked to choose 6-7 sectors in which they must
make minimum commitments on. The EU is also
demanding that countries bind sectors already
liberalized through autonomous national policy or
under structural adjustment policies of the International
Monetary Fund (IMF). This means that these
levels of liberalisation outside of the GATS will
automatically come under GATS rules in the future.
These new proposals, also called “complementary
approaches” have been met with tremendous
opposition from developing countries because they:
■ Remove the flexibilities originally available
under the request-offer framework;
■ Require all developing countries, including
Least Developed Countries (LDCs), even if
their economies are not ready, to commit a
significant number of commercially-important
sectors to liberalization and to deepen these
commitments by removing restrictions on
market access and national treatment; and,
■ Are one-sided as they largely focus on Mode 3
(commercial presence) where corporations ave
an interest, asking for a minimum of 51%
foreign ownership.
■ The new proposals sideline developing
countries’ demands on operationalising the
mandated assessment of the GATS before
they are asked to further open up.
Like all WTO agreements, GATS is being negotiated
with little public oversight. The conclusion of these
negotiations in favour of multinational corporate
interests will mean the death knell for public
services. The entire GATS package is serious setback
to public participation and democratic oversight in the
formulation of national policies, laws and regulations.
DERAILING GATS
Focus on the Global South's strategy is to derail
the WTO by actively preventing consensus in WTO
negotiations. The aim of the Derailer’s section is to
highlight where there is that lack of consensus and to
suggest ideas and strategies for promoting disaccord
among WTO country members.
In the run-up to Hong Kong we should:
■
■
■
■
■
■
Call for an immediate halt to market access
talks under the GATS;
Unequivocally oppose all proposals for
“benchmarking” or “complementary
approaches” to services liberalisation;
Reject the Mode 4 approach of some countries
such as India that are focused on the
movement of only skilled labour; and
Demand a comprehensive assessment of the
impact of past liberalisation and privatisation
of services.
24
The Derailer’s Guide to the WTO: Section 3 Part j
NAMA and the Spectre
of De-industrialisation
Non-Agricultural Market Access (NAMA)
What is NAMA?
NAMA and the July Framework
NAMA refers to non-agricultural market access. As its At the Cancun WTO Ministerial in 2003, a draft text
name suggests, it is a proposal for an agreement under
called the ‘Derbez Text’? with provisions for tariff
the World Trade Organisatiom (WTO) regime that binding and tariff reduction for NAMA was rejected
covers non-agricultural products, or all products
by member countries.
outside the Agreement on Agriculture (AoA).
Despite the rejection of the Derbez Text at
The objective of the negotiations is greater
Cancun, negotiations were resurrected through the
market access in non-agricultural products. That is,
July Frameworks in July 2004. The July Framework
non-agricultural products should be freely traded
defines the parameters for establishing modalities in
without (or with very limited) tariffs, quotas or other
market access for non-agricultural products. It has
importing/exporting restrictions.
been criticized for resurecting the major elements of
Unlike the AoA which has three pillars —market
the Derbez Text.
access, domestic support and export subsidies,
What are the elements of NAMA
NAMA’s sole objective is market access.
under the July Framework?
In WTO language, market access revolves
1. Coverage. The July Framework provides for 100
around the issue of tariffs - the reduction and
%
coverage with no a priori exclusion. This
elimination of tariffs, tariff peaks, and the
comprehensive
prevention of tariff escalation as well as bound
coverage means that there is no possibility of
tariff rates.
exemptions similar to the provisions in the Agreement
NAMA is an agreement for binding and reduction
on Agriculture (AoA). As a result of NAMA, it is
of tariffs not just on industrial products but on
expected that developing countries will be unable to
products like fish and fishery products, shoes, toys,
protect domestic industries crucial to their own
jewellery and almost anything outside the ambit of the
development.
AoA. The significance of this agreement lies in the
2.
Tariff Reduction Formula. Based on the July
scope of products and sectors that fall within its terms.
Framework,
tariff reduction shall commence from
Many of these are of vital importance to the
bound
rates
after
full implementation of current
development of developing countries and the
concessions.
The
formula for tariff reduction is likely
livelihoods of their populations. Denied the ability to
to be the non-linear Swiss style approach so that
protect their emerging industrial sectors, there are
developing countries which have higher tariffs will be
grave concerns that developing countries will be lead
required
to make proportionately greater cuts.
down a path of deindustrialisation.
3.
Tariff
Binding Formula. For unbound tariffs, the
This is because any existing domestic industries will be
basis
for
tariff
reduction shall be (2) times the MFN
unable to compete with industrial products likely to
applied
rate
in
the base year defined as 2001. This
flood their markets as a result of liberalisation. NAMA
would
would further reduce the development options for
require all countries to bind their remaining unbound
developing countries as it would undermine their
tariff
lines according to the agreed-upon formula.
already limited capacity to develop their industrial
base.
1 All words in bold are defined in the Glossary included at the end of this Guide.
2 The text was named after the Chair of the Cancun Conference, Mexican Foreign Minister Luis Ernesto Derbez.
3 Annex B of the July Framework sets out the details for NAMA.
25
Why is NAMA problematic for
developing countries?
1. The Derbez text was already rejected The
July Framework resurrects the Derbez Text, which was
already rejected by majority of the WTO-member
countries in Cancun. Once again, the position of
developing countries has been sidelined by the
interests of the richer industrialised nations.
2. An obligation to cut tariffs across the board.
It locks-in countries to tariff structures that would be
difficult to change in the future. Some say the
obligations would be irreversible. For developing
countries this would mean closing the doors on the
use of tariff policy and the protection of key industries
as an integral part of a development strategy.
3. De-industrialistaion. Policy space for protection,
which allowed developed countries to achieve
industrialization at the turn of the 19th and 20th
centuries, is now being closed to developing countries.
This could be disastrous for developing countries,
who in the absence of a growing industrial
sector, will be forced to continue to rely solely upon
their agricultural sectors. It is feared that the •
deindustrialisation
process which‘began under structural
adjustment programs will accelerate under NAMA.
4. Drastic tariff cuts. They would bring industrial
tariffs to the lowest levels since the 19th and early 20th
century. Also the harmonization of tariffs between
industrial and developing countries is anchored on the
principle of full reciprocity - that is that tariff reductions
should be undertaken by developed and
developing countries alike. This is contrary to the
principle of Special and Differential Treatment.
5. NAMA requires the binding of previously
unbound tariff lines. On tariff bindings, compared to
agriculture where almost all products were bound under
the AoA with few exemptions, not all non-agricultural
products were bound under the GATT-Uruguay Round.
A considerable percentage of products and tariff lines
remain unbound. The July Framework would force
countries to bind these products.
For countries like the Philippines, whose average
applied non-agricultural tariffs amount to a mere 4.3 %,
tariff binding in fact is a critical issue. The Philippines for
example would be forced to now bind more than 39 % of
its products previously outside the ambit of the WTO.
This would include 95% of tariff lines for fisheries that
are still unbound.
Binding of remaining tariff lines now would be
tantamount to closing the door to any prospects for
industrialization in the future.
6. The inclusion of fisheries. The fisheries sector
is considered an economically important yet sensitive
sector in many developing countries. It is a sector that
provides livelihoods to millions of small fishers.
Across the globe however, small fishers remain one of
the poorest sectors.
In the Philippines for example, tariff rates on
fisheries are already quite low owing to previous
unilateral liberalization of the sector. Following the
proposed formula in NAMA would force the country
to bind fish and fishery products at rates no higher
than 20 %. A level of tariff protection that many in the
sector argue is not enough to address the many
threats facing the sector.
Furthermore, the main issue for fishers is not
market access but protection of their livelihoods that
are constantly under threat from tremendous pressures
on the resource base and the lack of government
support.
Market access would further aggravate the bias
of government in favor of export-oriented sub-sectors
like aquaculture over the interest of small fishers.
Where do country groupings
stand on NAMA?
Developed countries like the US, EU and Korea are
pushing for NAMA.
Other developing countries like Kenya, Nigeria,
Egypt, and Indonesia oppose NAMA.
Argentina, Brazil and India (ABI) have proposed
less ambitious formula for tariff reduction.
Least Developed Countries (LDCs), although
exempt from making any commitments, have opposed
NAMA on the grounds of erosion of preferences.
In general, it appears though that developed
countries are united in NAMA while developing
countries are still divided on the issue. The devil,
however is in the detail (see below).
What is the current status
of negotiations?
Apart from agriculture, NAMA could be the possible
deal maker or deal breaker of the Hong Kong
Ministerial.
At this stage, there remains major disagreements
within member countries on NAMA, particularly on
the formula for tariff reduction and binding:
26
1) Divergence of views on the July Framework.
Developing countries site paragraph 1 of Annex
B of the July Framework which states that the content
of the agreement is still subject to negotiations and
that no agreement on the formulas prescribed in Annex
B has yet been reached. Hence, they refrain from using
the exact language in Annex B so as not to establish a
language norm which will be used in future
negotiations.
Developed countries on the other hand are
liberal in using the language and proceeding as if
NAMA is already a done deal. The reference to
paragraph 1 is where the proposal of Argentina, Brazil
and India (known as ABI proposal) is coming from.
2) Conversion of complex tariffs into their ad
valorem equivalents (AVES). The majority of the
member countries already use the ad valorein tariff
system with the exception of countries in the European
Union which maintains complex tariffs. There is a need
to convert these complex tariffs into their ad valorem
equivalents in order for the tariff reduction formula to
apply3) Differing positions on the tariff reduction
formula. There are countries like US and EU that are
aggressively pushing NAMA who want a Swiss
Formula for tariff reduction (also see glossary for
further details on tariff reduction formulas). This is an
ambitious formula that would effect bigger cuts to
higher tariffs. Countries like Argentina, Brazil, and
India (ABI) on the other hand have proposed a less
ambitious ‘Swiss-type’ formula applied line by line to
countries’ bound rates which considers average tariff
rates as part of the formula in the name of greater
flexibilities for developing countries. The ABI proposal
is for different rates of tariff reduction for developed
and developing countries in accordance to the
principle of “less than full reciprocity” and special
and differential treatment.
The US and EU criticize the tariff reduction
formula proposed by ABI as not being ambitious
enough and in fact ‘a step backward’ from the NAMA
mandate. The US also argued that getting rid of high '
tariffs and tariff peaks is expected to be done by all
members and not j'ust developed countries.
While the negotiations appear to have been
marked major disagreements there are also disturbing
signs, however, of a convergence occurring:
Despite much initial grumbling after the July
Framework deal, the developing countries have
accepted the “Derbez text”, which they rejected in
Cancun, as the basis of negotiations, as proposed by
the Framework;
There is now consensus on a non-linear Swiss or
Swiss-like formula for tariff reduction, which would
apply to all products and subject higher tariffs to
greater proportional cuts than lower tariffs, thus
disadvantaging many developing countries, which
maintain relatively higher tariffs on many key industrial
goods than developed countries.
A Uruguay Round formula, which would stipulate
an average tariff cut across industry but leave it up to
national authorities to determine the rate for particular
products, is not even in discussion, although it is
favoured by most developing countries;4
The so-called Pakistani compromise
The latest formula to emerge is the so-called Pakistani
compromise” which would factor into the formula the
average bound tariff rate, then run a coefficient of six
for developed countries and 30 for developing
countries. This would, according to the Pakistani
proponents, significantly bring down product tariffs
for everybody (a developed country concern),
harmonize tariffs within each grouping (a WTO
objective), and still preserve at least some of the
difference in average tariff levels between the developed
and developing country groupings (a developing
country concern).
It is likely that the Pakistani proposal - which
nobody rejected outright although some developing
countries were appalled - or a version of it will become
the basis of the NAMA talks when they resume.
It was more than just spin when US Deputy
Trade Representative Peter Allgeier issued the
following upbeat statement on July 28: ‘The path
ahead on NAMA is much clearer, given the work that
has been done in the past several weeks....Several
constructive ideas are on the table. There have been
signals of flexibility from all sides about finding the
right formula and the use of coefficients to realize real
market access opportunities.’s
DERAILING NAMA
Focus on the Global Souths strategy is to derail
the WTO by actively preventing consensus in WTO
negotiations. The aim of the Derailer’s section is to
highlight where there is that lack of consensus and to
suggest ideas and strategies for promoting disaccord
4 Bello, Walden. Are the WTO Talks in Trouble? Don't Bet On It. Focus on the Global South. August 2005
5 Ibid
27
among WTO country members.
The NAMA negotiations are now racing to meet
the objective to come up with “full modalities” by '
Hong Kong. Full modalities means that final figures
are
plugged into the formula already. “This is number
crunching time; no numbers by Hong Kong would
make it highly unlikely for us to conclude the Round
as desired,” according to Ambassador Stefan
Johanesson, the Chair of the NAMA Committee.6
The priorities according to the NAMA chair are
defining formula flexibilities and the getting
consensus
over the issue of unbound tariffs based on a number
of proposals on the table which include the mark-up
approach of Canada, the ABI proposal and the
proposal from Pakistan.
We should:
Expose the consequences of developing countries
absorbing tariff cuts to their industries, as is required
under current proposals. As country negotiators are
now grappling with the numbers, campaigners
should
also be ‘plugging- in’ the numbers based on the
proposals on the table. This should strengthen our
argument against further liberalization especially of
important and sensitive industries and sectors.?
Exert pressure on countries with a substantial
percentage of unbound tariffs to refuse binding of
their unbound tariff lines on the basis that binding
would further restrict policy space in using tariffs as a
tool for industrialization and development.
Dramatize the plight of small fishers and how
NAMA would aggravate their already impoverished
conditions. We should continue to work with fishers
groups around the world to amplify their voice in
opposition to liberalization of the fisheries sector and
their demand for WTO to get out of fisheries.
Sensitize industry groups, thereby broadening the
base of opposition to NAMA to include industries and
sectors that would have to face the entry of cheaper
imports, as well as trade unions.
6 Statement made by Ambassador Stefan Johanneson at the Lobby Meeting with civil society in Geneva on 17 October
2005
e
7 The latest and thus far most ambitious proposal from the EU to have a coefficient of 15 for developing countries and 5
for developed countries would be a good basis to make the projections on future tariff cuts.
28
The Derailer’s Guide to the WTO: Section
With a little help from its
friends...
How the WTO completes its stranglehold on
global and national policy making
The World Bank (the Bank), International Monetary
Fund (the Fund) and the World Trade Organisation
(WTO) are three faces of a powerful international
system that is increasingly dominating national and
global policy making, at the cost of the well-being and
livelihoods of the majority of the world’s peoples.
Their operating ideology is neo-liberah and their
driving interests are corporate.
The Bank and Fund have played significant
roles in -weakening policy autonomy and dismantling
domestic self-sufficiency in the developing countries
that borrowfrom them. Their infamous structural
adjustment programmes - now called Poverty
Reduction and Strategy Papers (PRSPs) — have
created and entrenchedpolicy inducedpoverty
across the developing world. Privatisation,
liberalisation and deregulation are the distinguishing
features of all Bank-Fund programmes and are
necessary conditions to all Bank-Fundfinancing.
Most major bilateral donors and the United Nations
(UN) agencies have aligned their aid programmes to
Bank-Fund policyframeworks. The more a developing
country liberalises its economy along the lines
prescribed by the Bank and the Fund, the more
bilateral and multilateral aid it is likely to receive.
The Bank and Fund believe that international
trade can play a crucial role in poverty reduction by
providing jobs and driving economic growth for
developing countries and that rapid economic growth
can be best achieved if countries enter export markets
through trade and strengthen their links with the
global economy.
Despite proclamations by the Bank that high
tariffs and Non-Tariff Barriers in wealthy countries
undermine the potential for economic growth and
poverty reduction in developing countries, the Bank
and Fund are unable to force the rich countries of the
OECD to reduce their own subsidies and dismantle
their trade barriers.
On the other hand, developing countries under
Bank-Fund loan regimes are exhorted to undertake
drastic policy reforms in all their sectors, from banking,
finance, public expenditure and trade to agriculture,
services, investment, infrastructure and even the
judiciary. The main purpose of these reforms is to open
up developing country markets to access by foreign
private investors and corporations and to remove all
barriers to international trade ahd investment in
developing countries. Over the past 15 years, BankFund imposed trade conditionalities have included the
removal of non-tariff barriers and quantitative
restrictions,
and tariffs and customs administration reforms.
According to the Bank and Fund, the Doha
Round “offers an unprecedented chance to free up
trade and contribute to poverty reduction on a global
scale”2 which can only be achieved through an
ambitious outcome”3 in the Doha negotiations. The
Bank and Fund believe that market access in agriculture
through large cuts in bound tariff rates and
bound levels of domestic supports and subsidies is
the key to success in the current negotiations. While
they accept that developed countries must take the
lead in this, they call upon middle-income countries—
especially those in the G-20—to remove tariffs and
other barriers in their agriculture markets, reduce tariffs
in manufacturing, and open up their services markets
for liberalization. Instead of pushing for “policy
space,” all developing countries must use the opportunity
of the Doha negotiations to lower trade and
investment barriers. The Bank and Fund broadly describe
their trade related work in developing countries as “aid
for trade.” World Bank “aid for trade” activities include
technical assistance, capacity building, institutional
reform, investment in trade related infrastructure, and
assistance to “offset adjustment costs”, i.e., to make the
1 All words in bold are defined in the Glossary included at the end of this Guide.
-------------------------2 Aid for Trade. Competitiveness and Adjustment. Development Committee, the International Monetary Fund and the
World Bank, April 12, 2005.
3 Ibid.
29
4
liberalization in their domestic economies. In
transition from tariffs to other sources of revenue.
particular,
Much of Bank lending for trade has gone towards
the IF ensures that poorer member countries
trade facilitation in more than 50 countries. Basically,
incorporate
the Bank works with its debtor governments to shape
“
appropriate trade reforms” into their national
national institutions, laws and regulations,
development policies through PRSPs, which form the
infrastructure,
basis for loans by the Bank and the Fund.
services, financial systems and other sectors of
the economy to facilitate trade liberalization. The Bank The IF is financed through a trust fund to which
the Bank has already allocated USS 1.5 million, and
also conducts training programs through the World
which has total pledges from donors for US $30.1 ,
Bank Institute to prepare the policy ground for trade
million. The IF has initially been implemented on a
liberalization, often in partnership with leading think
pilot basis in Cambodia, Madagascar and Mauritania,
tanks, universities and other teaching institutions in
and was the driving force behind Cambodia’s rapid
developing countries.
accession to the WTO. The IF was then extended to
The IMF on its part claims that, “The work of the
Burundi, Djibouti, Ethiopia, Guinea, Lesotho, Malawi,
IMF and the WTO is complementary” and that, “The
. Mali, Nepal, Senegal, Yemen, and Eritrea. At the end
two institutions work together to ensure a strong
of
system of international trade and payments that is
March 2005, 2% LDCs were at different stages of the IF
open to all countries.’^ The partnership works on
process. During the September 2005 World Bank IMF
many levels, to ensure greater coherence in global
Annual Meetings, the Bank-Fund Development
economic policymaking. A cooperation agreement
Committee endorsed a proposal for an enhanced IF
between the two organizations, covering various
that could be expanded to all countries that receive
aspects of their relationship, was signed shortly after
concessional loans from the Bank’s International
the creation of the WTO. The IMF has observer
status at the WTO, and IMF and WTO staff participate Development Association (IDA).
High-ranking staff of the IMF, World Bank and
actively in each others’ meetings, committees and
the WTO maintain close contact with each other and
working groups. Trade policy issues feature
with major bilateral donors to ensure that developing
prominently
countries do not stray away from the liberalization and
in Fund surveillance activities and the WTO is
privatization paths. The Bank and the Fund produce
required to consult the IMF on issues concerning
several research and analytical documents every year,
monetary reserves, balance of payments, and foreign
that promote trade and investment liberalization and
exchange arrangements. In April 2004, the IMF
private sector development. Much of the “technical
established the Trade Integration Mechanism (TIM), a
assistance and “capacity building” they provide to
special facility to lend to WTO member countries
developing countries actively support the WTO
whose balance of payments positions suffer as a result
of multilateral trade liberalization. The IMF anticipates framework and disciplines.
As the two of the most powerful pillars of the
that its cooperation with the WTO will intensify in
current global economic and financial architecture (the
WTO agreements on financial services, trade
third being the WTO), the IMF and the World Bank are
facilitation,
well positioned to ensure that their liberalisation
and agriculture (in particular, the cotton sector).
dogma is embedded deep into the domestic policies of
A highlight of Bank-Fund-WTO collaboration is
developing countries, even larger and more influential
the Integrated Framework (IF) for Trade-Related
ones such as India and Brazil. Fighting the WTO
Technical Assistance to Least-Developed Countries
regime therefore demands that we also fight the World
(LDCs). The IF is a multi-donor program that aims to
Bank and the IMF and the neo-liberal corporate
strengthen the capacity of LDCs to formulate WTO
compliant trade policies, negotiate trade agreements,
agenda they force on the people.
and tackle production issues in a manner favourable to
4 http://www.imf.org/external/np/exr/facts/imfwto.htm
}-
30
TheDerailer’s Guide to the WTO: Section ig
The Colombo Declaration:
10 Years is Enough No Deal at the WTO Hong
Kong Ministerial Meeting!
Declaration of the Organizations, Movements and Individuals
Gathered for the Asian Strategy Meeting on the World Trade
Organization, Colombo, Sri Lanka, June 6-7, 2005
From December 13 to 18, 2005, the World Trade
Organization’s Sixth Ministerial Meeting will take
place in Hong Kong . This event will have massive
consequences.
Either the WTO finally gets consolidated as
the prime mechanism of global trade liberalization, or
it unravels a third time, possibly crippling permanently
its usefulness as an institution for the promotion of
the interests of Northern transnational corporations
(TNCs).
Dismal Decade
That the WTO is suffering a deep crisis of legitimacy
and credibility as it marks its 10 th year of existence
comes as no surprise to us in Asia . When it was
founded in 1995, it was sold to developing and least
developed countries as an institution that would bring
about growth, reduce global poverty, and decrease
income inequality by expanding free trade. A decade
later, the evidence is undeniable that the WTO has
brought about exactly the opposite effects.
The Agreement on Agriculture (AOA) has proved
to be nothing but a gigantic dumping mechanism
for cheap subsidized grain and foodstuffs from the
United States and the European Union on the
agricultural markets of developing and least
developed countries’, destroying the livelihoods of
hundreds of millions of farmers and agricultural
workers and provoking the suicide of many of them
and their dependents.
The Trade Related Intellectual Property Rights
(TRIPs) Agreement has functioned to rob our
communities of their collective right to resources,
seeds, indigenous knowledge and even life itself,
and to thwart development by allowing
transnational corporations to monopolize technological
innovations throughout the whole range of
industries. It has seriously undermined people’s
food sovereignty. By putting corporate profits
above public health concerns, TRIPs has facilitated
a public health crisis in the form of HIV-AIDS that
has drastically setback many parts of Asia as well
as Africa .
The General Agreement on Trade in Services
(GATS), with its central principle of “national
treatment” providing foreign investors equal rights
as national actors, is proving to be an extraordinarily
powerful tool for TNG entry into and control of
the service sector. This situation is particularly
acute for developing and least developed countries
which accounts for more than 50% of their gross
domestic product. Especially threatened are water,
electricity, telecommunications, health, educational
and other essential services that necessitate public
generation and delivery systems in order to assure
all citizens equitable access to them. GATS will lead
to the shrinking of the public sector, threatening
national sovereignty and provoking serious social
unrest.
Although it claims to provide potential benefits
to LDCs, the GATS Mode 4 (the movement of natural
persons) carries a big risk of allowing big business
control of the movement of people, resulting in the
trampling of the rights of migrant workers.
WTO-mandated liberalization and WTOsanctioned
dumping have resulted in job losses and
welfare erosion across the board, but the brunt of their
negative impacts have fallen on women, who make up
more than half of the work force in agriculture,
I
31
industry, and services in many countries but receive
' lower remuneration, arp subjected to worse working
conditions, are less protected by labor and human
rights codes, and face greater job insecurity than men.
Indeed large numbers experience outright exclusion
from the labor force, leading to the forced-migration of
many. Privatization of basic services also increases the
burden of social reproduction for women.
WTO rules also accelerate the marginalization of
already vulnerable groups such as dalits and indigenous
people who now comprise a significant number .
of the poor and hungry.
The Anti-Development
July Framework Agreement
In a stupendous display of cynicism, the trade
superpowers have labeled th^ current round of trade
negotiations the “Doha Development Round.” Yet
there is nothing in the Doha Agenda that promotes
development. In fact, everything in the so-called “July
Framework Agreement” that serves as the basic text to
conclude the current round is profoundly
antidevelopment:
The framework on agriculture is designed to
maintain or expand such mechanisms of massive
subsidization for Northern agricultural interest such
as the “Green Box” or the “Blue Box” while
demanding
market access to Southern agricultural markets
through a new round of steep tariffs cuts, if not
outright elimination of tariffs.
The framework for non-agricultural market access
(NAMA) aims to radically bring down and bind
industrial and manufacturing tariffs to allow TNG
products to flood Southern markets, resulting in
unemployment and contractualization, as well as
deindustrialization and the inability of developing
and least developed countries to use trade policy as
an instrument of industrialization. It will also result
in greater hardship for already suffering fisherfolk,
particularly those in tsunami-ravaged countries,
whose livelihoods will be further eroded by
NAMA’s proposed liberalization of fisheries.
The July Framework relegates to the backburner the
principal concerns of developing and least developed
countries, which are development, the
institutionalization of Special and Differential
Treatment and addressing problems associated with
the high cost of implementing previous liberalization
commitments,
People’s Resistance and Corporate Response
Not surprisingly, the pro-corporate agenda of the
WTO has provoked massive resistance over the last
10 years. In Seattle in December 1999, the combination
of the refusal of developing and least developed
countries to rubberstamp a new round of liberalization
and massive anti-WTO mobilization by global civil
society brought about the collapse of the third
ministerial meeting. In Cancun in September 2003,
resistance by developing and least developed countries
organized into the G-20, G-33, and G-90, where the
least developed countries played a critical leadership
role, combined with civil society demonstrations and
actions inside and outside the Cancun Convention
Center that led to the collapse of the fifth ministerial.
To salvage the WTO as an instrument of the
TNC agenda, the United States and the European
Union successfully mounted an institutional coup in
July 2004 wherein the WTO General Council came out
with a decree that could only legally be issued by a full
ministerial meeting: the now, notorious July Framework
Agreement. This maneuver, however, could only
succeed owing to the cooptation of G 20 leaders Brazil
and India as full negotiating partners in the so-called
Five Interested Parties (FIPs), with the EU and US
designating them to “represent” the South. Once
again, the big Northern powers deployed divide-andrule
against the South; once again they succeeded.
Once again, the Northern elites stoked the ambitions
of their Southern counterparts; once again they
succeeded in turning them against their people.
Nonetheless, the resort to threat, deception, and
cooptation underlines the fact that developing and
least developed countries have lost all faith in the
possibility of reforming the WTO so that extraordinary
methods must be used to bring them on board.
Why No-Deal-in-Hong Kong
is the only Viable Strategy
With nothing to gain and everything to lose by
agreeing to the July Framework, the developing and
least developed countries must resolutely stand their
ground and refuse to make the latest concessions
demanded by the big trading powers. Global civil
society must consistently pressure the governments
of the South to reinforce their determination and force
them back into line should they, like the governing
elites of Brazil and India , falter. In this connection, we
demand that governments put the interests of people
above that of transnational corporations.
By refusing to give their consent to the pro-TNC
agenda in each of the key negotiating areas in the
I
32
negotiations leading up to the Hong Kong meeting and
during the Ministerial itself, the developing country
governments have it in their power to stalemate the
latest liberalization offensive. This strategy would, of
course, be tantamount to preventing a deal from being
reached at the sixth ministerial, but, as in Seattle , as in
Cancun , no deal is better than a bad deal.
Derailment of the sixth ministerial will not end
the threat of free trade to the developing and least
developed countries. They will still have to contend
with bilateral trade and multilateral trade
agreements—the so-called WTO plus agreements—
pushed by the US , EU, and Japan . Nevertheless,
given the WTO’s centrality in the TNC agenda, a
failed ministerial could help bring about a new
global power equation marked by more favorable
conditions for the achievement of what we consider
to be strategic prerequisites for the success of pro
people sustainable development:
the expulsion of the WTO from the domains of
agriculture and fisheries, services and intellectual
property rights;
frustration of the WTO’s aim to de-industrialize the
developing countries and least developed countries
and make them captive markets for the TNCs;
and the creation of a trade regime that genuinely
promotes pro-people and rights-based sustainable
development.
In conclusion, we declare our solidarity with
peoples and communities fighting back against the
WTO and bilateral, regional and multilateral free
trade agreements in Asia, Africa, Latin America ,
and other parts of the world.
We call all to participate in activities taking
place within the next few months aimed at
preventing a deal from being reached at the Hong
Kong Ministerial, be these lobbying activities, mass
mobilizations, and non-violent direct action. We
also urge civil and political movements to mobilize
and organize activities and actions designed to
pressure national governments to protect the
peoples’ interest. We urge everyone to mobilize
their co-workers, families and friends and bring
them to the “derail-the-ministerial ” demonstrations
and events in Hong Kong in mid-December. We
also call on developed country governments to
desist from the tactics of intimidation and,
manipulation that they regularly employ in
negotiations...
We, workers, organized and un-organized,
peasants, dalits, indigenous peoples, fisherfolks,
women, students, migrants and other marginalized
communities of Asia in solidarity with other
peoples of the world will stand at the forefront of
the global struggle against the Hong Kong
Ministerial Meeting.
DUMP THE ANTI-DEVELOPMENT
JULY FRAMEWORK!
NO DEAL IN THE HONG KONG
MINISTERIAL!
PROTEST AGAINST THE WTO!
33
The Derailer’s Guide to the WTO: Section
The ‘G-Guide’ groupings in the
WTO Agriculture Negotiations
G 20
Argentina, Bolivia, Brazil, Chile, China, Cuba, Egypt, India,
Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Philippines,
South Africa, Tanzania, Thailand, Venezuela and Zimbabwe.
The G20 currently comprises 19 developing country
members of the WTO. Led by Brazil and India, the G20
has become one of the most important groupings in
the WTO negotiation since the Cancun ministerial in
2003. The group has recently proposed a compromise
formula for tariff reduction (middle ground between
the Swiss and Uruguay round approach), which has
been widely accepted as a basis for further negotiation.
While arguing for the limited use of “sensitive
products” (a mechanism which would mainly benefit
developed countries), the group is more supportive to
the “special products” (SPs) and “special safeguard
G33
mechanism” (SSM) favoured by the G33. The group
has an offensive interest in reviewing domestic
supports, especially on the use of the Blue Box where
the group is the main driver of the review process to
ensure that payments under this provision are less
trade distorting than AMS* measures, and on the
Green Box where it wants to see new disciplines to
avoid box shifting. On export competition, the group
has proposed a five-year deadline for eliminating all
subsidies. (*Aggregate Measurement of Support:
support measures that need to be reduced under the
AoA, known as the Amber Box.)
Antigua and Barbuda, Barbados, Belize, Benin, Botswana,
China, Congo, Cote d’Ivoire, Cuba, Dominican Republic,
Grenada, Guyana, Haiti, Honduras, India, Indonesia, Jamaica,
Kenya, Republic of Korea, Madagascar, Mauritius, Mongolia,
Mozambique, Nicaragua, Nigeria, Pakistan, Panama, Peru,
Philippines, Saint Kits and Nevis, Saint Lucia, Saint Vincent and
the Grenadines, Senegal, Sri Lanka, Suriname, Tanzania,
Trinidad and Tobago, Turkey, Uganda, Venezuela, Zambia and
Zimbabwe.
The G33, or known as “friends of special products”
is understood to comprise of 42 countries. On the
tariff reduction formula, the group is opposing the
harmonization of tariffs across countries, and
insisting on taking into account the different tariff
structures of developing countries. The G33 is the
main proponent of SPs and SSM (see G20 above).
On SPs, it insists on self-selection on the basis of
the indicators developed. On SSM, it proposes that
this mechanism should be open to all developing
countries for all agricultural products. Moreover,
the SSM should be automatically triggered by
either import surges or prices falls. The group is
also very vocal on rejecting the developed countries’
proposal of cutting de minimis provision
allowed for developing countries.
34
Cairns Group
Argentina, Australia, Bolivia, Brazil, Canada, Chile,
Colombia, Costa Rica, Fiji, Guatemala, Indonesia,
Malaysia, New Zealand, Paraguay, Philippines,
South Africa, Thailand and Uruguay
The group comprises of traditionally agricultur
exporting countries. The Cairns Group has an
obvious offensive interest in market access. It
seeks harmonisation of import tariff across WTO
members, and, like the US, views the G20 proposals
as “lacking ambition”. The Cairns Group would like
to limit as far as possible the sensitive products,
but the group is divided on the SPs & SSM, which
610
is also the case regarding the issue of trade distorting
domestic support, where some members are
significant users of the Amber Box. Concerning the
Blue Box, Green Box, and export competition, it
shares a similar offensive position as the G20. That
means the group is seeking restrictions in subsidies
predominantly used by developed countries.
Bulgaria, Chinese Taipei, Republic of Korea, Iceland, Israel,
Japan, Liechtenstein, Mauritius, Norway and Switzerland
wants to maintain the status quo of the Blue Box. Also,
This is the group of ten countries with the most
it opposes the proposal to review and clarify criteria
defensive interest in the agriculture negotiation. It
for the Green Box. As for export competition, the G10
opposes the G20 formula, particularly the tariff
capping element. It argues for a free determination of wants a long time frame for the elimination of export
subsidies. Moreover, very much like the EU, it links
products to be designated as sensitive. The GIO also
this particular issue to outcomes in other areas of
has strong defensive position regarding domestic
negotiation such as NAMA and Services.
support. Like the EU, it is not interested in
I
expanding criteria, but
African Union/Group, AGP, least-developed countries
(also known as the G90)
Angola, Antigua and Barbuda, Bangladesh, Barbados, Belize, Benin, Botswana,
Burkina Faso, Burundi, Cambodia. Cameroon, Central African Republic, Chad,
Congo, Cote d’Ivoire, Cuba, Democratic Republic of the Congo, Djibouti,
Dominica, Dominican Republic, Egypt, Fiji, Gabon, The Gambia, Ghana,
Grenada, Guinea (Conakry), Guinea Bissau, Guyana, Haiti, Jamaica, Kenya,
Lesotho, Madagascar, Malawi, Maldives, Mali, Mauritania, Mauritius, Morocco,
Mozambique, Myanmar, Namibia, Nepal, Niger, Nigeria, Papua New Guinea,
Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines,
Senegal, Sierra Leone, Solomon Islands, South Africa, Suriname, Swaziland,
Tanzania, Togo, Trinidad and Tobago, Tunisia, Uganda, Zambia, Zimbabwe
I .
35
This grouping, also known as the G90, has 64 WTO
member countries. Although members of the group do
not share all positions in the negotiations, the most
crucial and common concern of the group is the
preference erosion, which is related to all three pillars
of the agriculture negotiation. Many of the countries in
the group are very dependant on certain Northern
markets for their agriculture exports due to the existing
preferential schemes. Countries in the G90 want to see
specific and concrete solutions to the problems of
preference erosion. Many suggest that preferences
should be maintained until such time as all domestic
and export subsidies are removed that affect their
commodities.
United States
While having a very offensive position on market
access, the US adopts almost an opposite approach
on domestic support. It views the G20 formula
proposal as not ambitious enough, and emphasizes
the limited scope and flexibility of sensitive products.
Plus, it strongly opposes SSM by arguing the
duplication with SPs. At the same time, it does not
want to see changes to the Green Box status quo.
The US is the main proponent for the expansion of
the Blue Box criteria, which would allow for its
counter cyclical payments to continue and expand.
The US is the main user of export credits and food
aid schemes to deal with its over supply of agriculture
products. Thus, it has adopted h defensive
position in export competition in the Aspects linked
to these two elements.
European Union
The EU has been taking a rather defensive approach
in the market access negotiations. Although
accepting the G20 proposal as a starting point, it
criticises the formula as too ambitious. However,
unlike the GIO, the EU also has offensive interest in
accessing other countries’ markets. At the same
time as it argues for a flexible use of sensitive
products, it exerts pressure on developing countries
to restrict the flexibility regarding SPs & SSM.
On domestic support, the EU wants to maintain the
status quo in both the Blue Box and Green Box and
opposes the review proposals. It has a very
sensitive defensive interest in the export competition.
It argues for a long time frame for the elimination
of export subsidies, and hasn’t so far given
any end date for these subsidies. Plus, it has put
forth several pre-conditions in order to achieve this
elimination, including the ambitious liberalizatioh in
other areas such as non-agricultural market access
(NAMA) and services (GATS).
36
The Derailer’s Guide to the WTO: Section
Glossary and Trade Jargon
Agreement on Agriculture. Part of the Uruguay
Round agreement covering issues related to agriculture
— e.g., market access, export subsidies, and
internal support.
Aggregate Measure of Support (AMS). An index
that measures the monetary value of the extent of
government support to an economic sector. As defined
in the Agreement on Agriculture, the AMS includes
both direct and indirect government supports to the
sector, if they are judged to create distortions in the
market. For example, it includes both direct payments
to farmers, such as payments to guarantee them a
higher than world market price, as well as indirect
payments such as taxes on food at the point of sale to
consumers that are used to support farm programmes.
The AMS is different from another broader concept of
agricultural support called the Producer Subsidy
Equivalent (PSE) because certain PSE policies are
excluded from the AMS, and because of the methodology
used to compute direct payments and market price
support benefits.
Amber Box. A popular expression referring to the set
of domestic supports which are considered to be
production and trade distorting and are measured by
an index termed the Aggregate Measure of Support
AMS).
production. US’ Deficiency payments were exempt
under this provision as compliance with acreage
reduction programmes was required for eligibility, and
payments were made on no more than 85 per cent of
established base acreage, and individual farm yields
had been fixed since 1996. Blue box policies are
contained in Article 6.5 of the Agreement on Agriculture.
Bretton Woods. The United Nations Monetary and
Financual Conference held at Bretton Woods, New
Hampshire, in 1944 produced charters for the World
Bank (WB) and the International Monetary Fund
(IMF). It also proposed the establishment of the
International Trade Organization which turned into the
GATT which in turn led into the WTO.
Country Schedules. The official schedules of
subsidy commitments and tariff bindings as agreed to
under GATT for member countries.
Decoupled Payments. These supports paid to
producers are not dependent on prices or production
levels. In theory, no production is required to receive
these payments, though in reality, production continues
while payments are made based on some other
criteria. In the AoA, decoupled payments are deemed
to be non-trade distorting and are allowable under the
green box.
Bound Tariff Rates. Tariff rates resulting from
GATT negotiations or accessions that are incorporated
as part of a country’s schedule of concessions.
Bound rates are enforceable under Article II of GATT.
If a GATT contracting party raises a tariff above the
bound rate, the affected countries have the right to
retaliate against an equivalent value of the offending
country’s exports or receive compensation, usually in
the form of reduced tariffs of other products they
export to the offending country. However, countries
are free at any time to reduce their bound tariffs still
further. Bound tariffs can be lowered but not raised.
De Minimis Provision. This provision allows
countries to maintain a certain level of AMS. For
developed countries this level can be up to 5 per cent of
the value of production for individual products (product
specific support), and 5 per cent of the value of a
country’s total agricultural production (non-product
specific support). For developing countries, support can
be up to 10 per cent. Within the Agreement on
Agriculture, however, countries can only provide these
levels of support if they are within the 1992 support
levels because of the due restraint clause.
Blue Box. A popular expression to represent the set
of provisions in the Agreement on Agriculture that
exempts from reduction commitments those program
payments received under production limiting
programmes — if they are based on fixed area and
yields or a fixed number of head of livestock, or if they
are made on 85 per cent or less of base level of
Deficiency Payment. This was allowed under the
blue box since, in the US, compliance with acreage
reduction programmes was required for eligibility. It is
a direct government payment made to US farmers who
participated in wheat, feed grain, rice, or cotton
programmes prior to 1996. Deficiency payments
bridged the gap between a the national average market
price and a politically determined target price to
37
support farm incomes which were set by the US
Department of Agriculture (USDA). The total payment
to a farmer was equal to the payment rate, multiplied
by a farm’s eligible payment acreage and the
programme yield established for the particular farm.
Deficiency payment programmes in the US were
eliminated in the 1996 Farm Act and have since been
replaced by another subsidy programme, the production
flexibility contract payment.
Derailment of the WTO. Derailment involves
zeroing in on the key point of vulnerability of the
WTO: its consensus system of decision-making.
Concretely, it means working to prevent consensus
from emerging in any of the key negotiating areas prior
to and during the Sixth Ministerial in Hong Kong.
I
■i
Dispute Settlement Body (DSB). The General
Council of the WTO, composed of representatives of
all member countries, convenes as the Dispute
Settlement Body to administer rules and procedures
agreed to in various agreements. The DSB has
authority to establish panels, adopt panel and Appellate
Body reports, maintain surveillance of implementation
of rulings and recommendations, and authorize
suspension of concessions or other obligations under
the various agreements.
Due Restraint Provision. The UR Agreement on
Agriculture provision that sets a 9-year period during
which domestic support policies and export subsidy
arrangements are exempt from GATT challenges.
Dumping. Occurs when goods are exported at a price
less than their normal value, generally meaning they
are exported for less than they are sold in the domestic
market or third-country markets, or at less than
production cost.
a
Export Subsidies. Special incentives, such as cash
payments, extended by governments to encourage
increased foreign sales; often used when a nation’s
domestic price for a good is artificially raised above
world market prices.
Formula-based Tariff Reductions. A method of
negotiating tariff reductions using an agreed upon
formula applied to tariff rates (with limited exceptions
being granted for very sensitive items) by all contracting
parties. GATT (General Agreement on Tariffs and
Trade). An agreement originally negotiated in Geneva,
Switzerland in 1947 among 23 countries, including the
US, to increase international trade by reducing tariffs
arid other trade barriers.
The agreement provides a code of conduct for
international commerce and a framework for periodic
multilateral negotiations on trade liberalization and
expansion.
THE FORMULA AS A HARMONIZING FORMULA:
when a formula is referred to as having a “harmonizing”
effect it is designed principally to make steeper
cuts on higher tariffs, so as to bring all the final tariffs
closer to the same level. A COEFFICIENT: the number
that determines the final tariff rate for each product.
For example, if the coefficient is set at 25, then the
formula will be designed to bring the final tariffs close
to or at 25 percent. SWISS FORMULA: this is a
harmonizing formula that uses a single mathematical
formula to produce a narrow range of final tariffs.- A
“simple” Swiss formula will select an arbitrary
coefficient for all countries irrelevant of their starting
point so that everyone’s tariffs are set at the same level.
For example, countries would select a single coefficient
and all WTO members will have to bring their tariffs
close to that level.GIRARD FORMULA: this is a
harmonizing formula that uses a single mathematical
formula to produce a narrow range of final tariffs. It
differs from the simple Swiss formula in that each
country has its own coefficient calculated on the basis
of the country’s national tariff average. It is often
referred to as a “Swiss-type” formula. URUGUAY
ROUND FORMULA: this is the formula that was used
in the Uruguay Round for agriculture tariff reductions.
Tariffs are cut by a percentage average over a number
of years. For example, developed countries agreed to
cut tariffs by an average of 36% over six years with a
minimum of 15% on each product. The combination of
average and minimum reductions allows countries the
flexibility to vary their actual tariff reductions on
individual products so that some cuts will be greater
than others.CANADIAN “INCOME TAX” FORMULA:
this is a new formula that was proposed in June 2005 in
the Committee on Agriculture. It is a harmonizing
formula. Instead of applying a single cut to the entire
tariff, different percentages are applied to different
portions of the tariff, in a similar way to which European
income tax is calculated.ABI FORMULA: the
Argentina, Brazil and India (ABI) proposal for formula
in NAMA. The formula is essentially a Girard formula.
GATT. Launched in 1947, the General Agreement on
Tariff and Trade, was established to provide and
administer the rules for a multi-lateral trading system.
Green Box. A colloquial term that describes domestic
support policies that are not subject to reduction
38
commitments under the Agreement on Agriculture.
These policies are said to affect trade minimally, and
include support such as research, extension, food
security stocks, disaster payments, and structural
adjustment programmes.
July Framework. A framework agreement mainly on
agriculture reached at the General Council of July 31,
2004 in Geneva, Switzerland. It provides the operative
framework for further negotiations on agriculture,
nonagricultural market access and other issues.
Liberalisation. A process of removing the barriers to
trade in order to achieve the free trade of goods,
services, intellectual property and investment across
international borders. A market-oriented trading
system is one which has liberalised its trading system.
Market Access. The extent to which a country
permits imports. A variety of tariff and nontariff trade
barriers can be used to limit the entry of foreign
products, thereby reducing market access.
Modalities. Methodology to be followed during the
Negotiations
Most-favored-nation (MFN) Status. An agreement
between countries to extend the same trading privileges
to each other that they extend to any other
country. The MFN rule is a founding principle of the
WTO. Under a most-favored-nation agreement, for
example, a country will extend to another country the
lowest tariff rates it applies to any third country. A
country is under no obligation to extend MFN
treatment to another country, unless they are both
members of the WTO, or unless MFN is specified in an
agreement between them. The WTO allows some
exceptions to the rule, for instance to allow developed
countries to extend more favourable trading terms to
least developed countries.
Neo-liberalism. Neo-liberalism is an economic
ideology centered around the values of globalization free market, free trade and the unrestricted flow of
capital. This rejects government intervention in the
economy.
New Issues. See Singapore issues.
Non-tariff Barriers. Regulations used by governments
to restrict imports from, and exports to, other
countries, including embargoes, import quotas, and
technical barriers to trade. These include health and
environmental standards.
OECD (Organization for Economic Cooperation
and Development). An organization founded
in 1961 to promote economic growth, employment, a
rising standard of living, and financial stability; to
assist the economic expansion of member and
nonmember developing countries; and to expand world
trade. The member countries are Australia, Austria,
Belgium, Canada, the Czech Republic, Denmark,
Finland, France, Germany, Greece, Hungary, Iceland,
Ireland, Italy, Japan, Luxembourg, Mexico, the
Netherlands, New Zealand, Norway, Poland, Portugal,
South Korea, Spain, Sweden, Switzerland, Turkey, the
United Kingdom, and the US.
Peace Clause. See Due Restraint Provision.
Privatisation. This is the transfer of ownership from
the public sector to the private sector. Privatisation
has been pushed by international financial institutions
as an economic tool to make the exploitation of
resources be as efficient as possible. This has been
the central issue of many struggles across the globe as
in many cases, it has limited access to essential
services to only those who can afford it.
Producer Subsidy Equivalent (PSE). A broadly
defined aggregate measure of support to agriculture
that combines into one total value aggregate, all the
transfers which arise from the different instruments of
agricultural support, both trade ahd supposedly nontrade
distorting. In the US, these include direct
payments to producers financed by budgetary
outlays, such as deficiency payments, budgetary
outlays for certain other programmes assumed toprovide
benefits to agriculture (such as research and
inspection and environmental programmes) and the
estimated value of revenue transfers from consumers
to producers as a result of policies that distort market
prices. The PSE seeks to reflect the frill range of
economic distortions arising from agricultural policies.
Production Control. Any government program or
policy intended to limit production. In agriculture
these have included acreage allotments, acreage
reduction, set-asides, and diverted acreage.
Production Flexibility Contract Payments
(PFCP). Direct payments to US farmers for contract
crops through 2002 under the US 1996 Farm Act.
Payments for each crop are allocated each fiscal year
based on fixed percentage shares specified in the act.
The percentages were based on the Congressional
Budget Office’s March 1995 forecast of what deficiency
payments would have been for 1996 to 2002
39
under the 1990 farm legislation. PFCPs were initially
higher than deficiency payments paid to farmers.
However, they have been set on a descending scale,
heading for zero payments by 2002.
Sanitary and Phytosanitary (SPS) Measures.
Technical barriers designed for the protection of
human health or the control of animal and plant pests
and diseases. Special Safeguard provisions. Provisions
within the UR Agreement on Agriculture
designed to protect the products that were subject to
tariffication (as a result of implementation of the
Agreement) from surges in imports or large price
declines.
Singapore Issues. The Singapore or New Issues are
investment, competition policy, government procurement
and trade facilitation. They are called the
Singapore Issues because of the working groups
established on each issue at the WTO’s first Ministerial
in Singapore in 1996. Developing countries are
largely opposed to the inclusion of the Singapore
issues in current negotiations.
I
Sensitive products. This would allow developed
countries to designate certain sensitive products
which they could continue to protect. Developing
countries argue that this will prevent them from having
access to developed country markets.
Special and Differential Treatment. SDT or S&D
is less arduous treatment conferred on developing
countries in the implementation of WTO rules. For
example, developing countries may have lower tariff
reduction requirements or longer phase in periods.
Under SDT, ‘less than full reciprocity’ is expected of
developing countries in that they need not offer
reciprocal treatment to developed countries. It also
includes the proposed Special Products and the
Special Safeguard Mechanism (SSSM). Developing
country demands for SDT have largely fallen on deaf
ears in recent WTO negotiations.
Special products. The concept of Special Products
SP), would allow developing countries to have the
guaranteed flexibility to designate an “appropriate
number” of products for less market access reduction.
The operational criteria would be based on food
security, livelihood security and rural development.
(
)
Special Safeguard Mechanism, a proposal to
allow developing countries to increase their protection
in times of import surges or fluctuations in world
market prices,
Special Treatment Clause. A clause in the UR
Agreement on Agriculture that gives countries the
option of foregoing tariffication on some commodities
and instead requires minimum imports above the
minimum access commitments of 3-5 percent of
consumption. This clause was added to temporarily
placate Japan and South Korea by providing protection
for their rice sectors. In the case of Japan, for
instance, the minimum import requirements for rice are
at 4 percent of consumption in 1995, rising to 8 percent
in 2000.
Tariff. A tax imposed on imported products by a
government which consumers have to pay. A tariff may
be either a fixed charge per unit of product imported
specific tariff) or a fixed percentage of value (ad
valorem tariff). Tariffs are generally imposed when
governments do not want imported products to
compete with locally made ones. Tariffs are also
sometimes used to tax exports, in order to generate
revenue, or to keep certain products available on the
domestic market.
Tariff Escalation. When import duties are higher on
semi-processed products than on raw materials, and
higher still on finished products. This escalation
serves to keep the global market open for raw materials
but ensures that the countries producing higher-end
processed products are insulated from competition.
Effectively, this entrenches developing countries inthe
position whereby tjtey remain exporters of cheap raw
products since their processed products, if any,
are barred from entering the global market.
Tariff Peaks. High tariffs (far above the average
tariffs of a country) used to shelter some ‘sensitive’
industries or products, such as textiles, leather goods,
and food products.
Tariff-rate Quota. Quantitative limit (quota) on
imported goods, above which a higher tariff rate is
applied. A lower tariff rate applies to any imports below
the quota amount.
Tariffication. The process of converting nontariff
trade barriers to bound tariffs. This is done under the
UR agreement in order to improve the transparency of
existing agricultural trade barriers and facilitate their
proposed reduction.
40
Trade Liberalization. A term which describes the
complete or partial elimination of government policies or
subsidies that restrict trade. The removal of
tradedistorting policies may be done by one country
unilaterally) or by,many (multilaterally).
UR (Uruguay Round) Agreement. The Uruguay
Round of multilateral trade negotiations, conducted
under the auspices of the GATT, is a trade agreement
designed to, open world markets. The Agreement on
Agriculture is one of the 29 individual legal texts
included in the Final Act under an umbrella agreement
establishing the WTO. The negotiation began at Punta
del Este, Uruguay in September 1986 and concluded in
Marrakesh, Morocco in April 1994
Sources:
Bello, Kwa, Guide to the Agreement on Agriculture:
Technicalities and Trade Tricks Explained, Focus on the
Global South, 1998
Smaller, Carin, Formula One Racing: Who’S Going to Win
the Grand Prix?, TIP/IATP, June 2005
Goode, Walter, Dictionary of Trade Policy Terms, World
Trade Organization, 2004
Dommen, C. and Kamoltrakul, K., The Practical Guide to the
WTO for Human Rights Advocates, 3D and Forum Asia,
2004.
Wikipedia, the free encyclopedia
i?
World Trade Organization (WTO). Established
January 1, 1995 as a result of the Uruguay Round,
the WTO replaces GATT as the legal and institutional
foundation of the multilateral trading system of
member countries. It provides the principal contractual
obligations determining how governments frame and
implement domestic trade legislation and regulations.
And it is the platform on which trade relations among
countries evolve through collective debate, negotiation,
and adjudication. AO
Other organizations to check out:
there are a whole lot more,
these are just to start you off in the right direction)
Christian Aid: www. christianaid. org. uk
GATSwatch: www.gatswatch.org
Global Exchange: www.globalexchange.org
Hemispheric Social Alliance: http://www.asc-hsa.org
Institute for Agriculture and Trade Policy (IATP):
www. iatp. org/global
Institute for Global Justice (IGJ): www.globaljust.org
Our World is Not for Sale: www.ourworldisnotforsale.org
Oxfam: http://www.oxfam.org.uk
Polaris Institute: www.polarisinstitute.org
Seattle to Brussels Network (S2B): www.s2bnetwork.org
Thai-US FTA Watch: www.ftawatch.org/eng/
Third World Network: www.twnside.org.sg
Via Campesina: http://www.viacampesina.org
The Derailer’s Guide to the WTO: Section 8
The Road to Hong Kong
1996 Singapore: the first WTO Ministerial.
It was here that the proposal was made
to include investment, competition policy,
Government procurement and trade facilitation
in the negotiating agenda.
1999 Seattle: Proposals for &
new round of negotiations are
set against demands for an
assessment of the impacts of
the Uruguay Round. The event
is disrupted by tens of
thousands of protestors calling
for an end to the WTO and its
negotiations. WTO trade
talks collapse for the first
time.
•r-
2001 Doha: Provided the ‘mandate’ for
the launch of new multilateral trade
negotiations in the WTO. It produced the
Doha Development Agenda (DDA). The
‘development’ rhetoric was put in to ease
the concerns raised by developing
countries’ implementation issues
2003 Cancun: Supposed to be a ‘stock taking’ exercise
to assess how far the DDA negotiations have gone, yet
there were concrete proposals to begin negotiations on the
Singapore issues. Developing country groupings like the
G20, G33 and G90 emerged challenging the US-EU
agenda. Korean farmer Lee Kyung Hae takes his own life
under the slogan ‘WTO kills farmers’. WTO trade talks
collapse for the second time.
2005
Hong
Kong:
‘Strike
three and
you are
out’ for
the
WTO?
f
Page 1 of 6
Main Identity
rrom:
To:
Sent:
Subject:
"ESG, India' <esg@bgi.vsni.nei.in>
<sochara@blr. vsnl. net. in>
Monday, June 02, 2003 8:07 PM
6 MAJOR DAMS, A NUCLEAR POWER PLANT, A PAPER MILL AND NOW ANOTHER DAM?
6 MAJOR DAMS. A NUCLEAR POWER PLANT, A PAPER MILL AND NOW ANOTHER DAM?
JOIN THE KALI BACHAO ANDOLAN TO SAVE WHAT LITTLE IS LEFT OF THE KALI RIVER
Join the Kali Bachao Andolan (Save Kali River Movement). On June 5th 2003, World Environment
Day, various representatives of the Kali Bachao Andolan will rally in Bangalore to demand fiom the
Chief Minister of Karnataka to order NO MORE DAMS ON THE KALL Here’s why.
Facts
The 184 kms. long Kali River in the Uttara Kannada district of the Western Ghats region in
Karnataka, already has 6 major Hydroelectric dams. In addition, the river supports the only nuclear
plant in a forest in the world - the controversial Kaiga Nuclear Power Station. Over 1200 MW of
power is already generated fioin these dams, and an additional 440 MW from Kaiga. There is now a
serious attempt to build a 7th dam on the Kali River, near Dandcli. by Murdeshwar Power
Corporation Limited (MPCL).
- The MPCL dam is proposed to generate only 18 MW of electricity. This at the cost of submerging
210 ha of foresis along the Kali. If allowed, the last stretch of Kali that is flowing undimmed, will be
lost for posterity Over the decades over 32,000 acres of forests have been submerged in this district
to build the six dams. This last stretch assumes a lot of importance when wo appreciate the fact that
the last riverine stretch of forest left along the Kali would be lost forever, if MPCL were allowed.
Construction of this new dam is also a significant violation of the 19th May 1987 Government of
Karnataka order (No. FFD 242 FGL 83) that no further projects involving diversion of forest land for
other uses will be undertaken on Kali River or its tributaries. Latest Supreme Court decisions have
upheld the spirit of this order.
I
• llie Government claims upto 1700 MW of power can be generated from the river. However, there
is very little of the river left, to dam. The MPCL dam is an incremental attempt at snuffing out what
little of the river is left.
• Almost all the power that is generated from the district is exported to other regions. Uttara
Kannada uses only 17 MW of the electricity' produced. Many parts of the region languish in
darkness. Simply put. this region’s cry tor enough "development" by "dams" needs to be addressed.
Now.
• A! Rs. 180 crores (US S 40 million approx.), the MPCL dam project is one of the costliest ever
piuposed. Some re polls project the cost to be 15 times that produced by KPCL. Legally this project
has to be abandoned, for besides the cost factor; the proponent along with its consultants arc guilty of
6/3/03
Page 2 of 6
presenting two fraudulent Environment Impact Assessments, one by M/s Ernst and Young, and
thereafter by M/s Tata Energy Research Institute. Environment Support Group and Parisara
Samrakshana Kendra exposed both frauds during 2000, and per the Environment Impact Assessment
Notification, this is a case fit for rejection absolutely. Based on this expose’, the Deputy
Commissioner of Uttara Kannada district, on the basis of an affidavit filed by Environment Support
Group, and other evidences gathered during an Environmental Public Hearing held during January
2001. has recommended that the project not be allowed. The District Forest Officer has also found
that the claims of the proponent that there arc no forests in the submergence area is false, for this
area constinnes an assemblage of moist deciduous and evergreen forests, supporting a range of
wildlife, including the occasional tiger. Vet there is veiy high pressure to build this dam
■ The Dandeli Paper Mills throws out large volumes of its untreated effluents into the river. For the
communities who depend on this river, adverse impact of the accumulated pollutants has been
tremendous. Losses in agriculture, dairy fanning and fisheries are a common tale here, and cattle
deaths are regularly reported. Farmers in direct contact with the water suffer from a variety of skin
diseases caused due u> pollution of the river. Very little is known of the impact on wildlife. The
concerned regulatory agency, the Karnataka Pollution Control Board has done very little to contain
<he damage, thereby allowing the Mills a free run on its polluting spree. Only recently, due to
pressure from local communities under the banner of Kali Bachao Andolan. has there been some
response with the local Assistant Commissioner initiating criminal proceedings against the
company, i he demand is not a closure of the Dandeli Paper Mills. Rather it is to get the mill to
clean up its operations for the benefit of all - including the employees of the mill
• There are various other threats to the river. Sand mining is of particular significance here, for it is
illegal and continuing on a rampant scale in the Supa Dam area, resulting in serious disturbances to
the river’s ecology. The people of the region are now pleading for an end to this endless misery.
Parisara Samrakshana Kendra (PSK). along with several local community organizations and tribal
villages, have formed the Kali Bachao Andolan in order to build awareness on the threats to the Kali
River, and to stop further dammine and pollution. Pandurang Hegde, leading the Kali Bachao
Andolan, and several others conducted a Padayatra (an awareness - building and protest walk along
the entire course of the river) in February this year. Sunderlal Bahuguna, leader of the Chipko
Andolan, launched this Padayatra. There has been overwhelming response from local communities
to this effort. Environment Support Group (ESG), Bangalore, is an active support organization of the
Kali Bachao Andolan.
Bangalore Dhama on World Environment Day to protest the destruction of Kali River, and demand
no more dams or pollution:
Under the banner of the Kali Bachao Andolan, PSK and ESG, have organized a Dhama (peaceful sitin) to protest the destruction of the Kali Paver on June 5th 2003, World Environment Day. The
protest will be held at 10 a m. at the Mahatma Gandhi Memorial (M. G. Road), Bangalore. A wide
variety of representatives from affected communities, including tribals, village and community
organizations, fisherfolk and local NGO's from Uttara Kannada region will participate in this
Dhama . Following a Rally, a memorandum will also be submitted to the Chief Minister of
Karnataka and Karnataka’s Minister for Environment and Forests.
6/3/03
Page 3 of 6
we invite you to participate in this Dharna, as a mark or support ror this movement and in
meaningful commemoration of the World Environment Day. We urge you to enlist other supporters
in this effort. For further details contact: Bliaigavi S. Rao and Padmashree at ESG.
Appeal to the Chief Minister of Karnataka:
1 he memorandum to be submitted to the Chief Minister will contain names and addresses everyone
who has supported this demand for NO MORE DAMS OR POLLUTION OF THE KALT. We are
enclosing a letter addressed io the Chief Minister of Karnataka, Mr. S. M. Krishna. We encourage
you to endorse this letter by mailing/emailing the Chief Minister and marking a copy to the Union
Minister for Environment and Forests, Mr. T. R. Baalu. Please include your full name, affiliation (if
any) and address (required), before sending this letter, and remember to mark a copy to ESG (address
as below). We will take a printout of all the letters and submit the same to the Chief Minister Do
encourage your friends and associates to sign and send many more letters. It is inqx^nant that you
send these letters before the 5th June.
Your voice in support of the Kali Bachao Andolan could go a long way in supporting the cause of
this river.
Contribution*
There aie various expenses we are incurring in organizing these efforts. We rely on your donations
to cover the cost of this effort , Please do donate generously in support of the Ka li Bachao Andolan.
All financial contributions (Chequc<DD,MO/Cash) should be in favour of’’Environment Support
Group6, and should be send to Environment Support Group indicating that the contribution is for
Kali Bachao Andolan. Al! monetary contributions benefit from income tax exemptions under Sec
SOG of die income Tax Act
Involve in organising;
There is simplv no substitute tor actively participating in the Kali Bachao Andolan. Any small effort
is welcome to make this campaign a success. Do callzcmai]Avritc to Environment Support Group for
details on how you can support. Contact persons: Nitya Reddy and Harminder at ESG.
Thank you for taking time to care ,.
Leo F. Saldanha/Subramanya Shastry
Environment Support Group ®
S-3, Rajashree Apartments, 18/57,
1st Main Road, S. R. K. Gardens,
Jayanagar, BannerghaUa Road,
Bangalore 560 041. INDIA
Telefax; 91-80-6341977/6531339/6534364
Email: esg@bgl.vsnl.net.in
I
Pandnrang Hegde
Faiisara Samiakshana Kendta
Parisara Samrakshana Kendra
Hulemalgi Building, Chowkimath
Sirs! (Uttara Kannada Dt.)
6/3/03
Page 4 of 6
Karnataka 581401
Tel: 91-8384 425139/425039
Fax: 91-4435450/427839
Email: appikcxitt/sanchamcLin
30 May 2003
APPEAL LETTER TO CHIEF MINISTER OF KARNATAKA. INDIA
May 30,2003
To
Mr. S.M.Krishna,
Chief Minister of Karnataka,
Vidhana Soudha
Bangalore 56001 INDIA
Email; smkrishna@bangaloreit.com <mailto:smkrishna@bangaloreit.com> or
cmkrishna@bangaloreit.com <maiito:cmkrishna@bangaloreit.com >
Reg.: A World Environment Day appeal to Save Kali River for posterity
Honourable Chief Minister,
LWe appeal to you to address the concerns raised by the Kali Bachao Andolan (KBA) formed by
several local community organizations and tribal villages to highlight severe threats to the Kali River
and protect it for posterity.
There arc already 6 major hydel plants on tlic river and there are serious attempts to build another
dam near Dandeli. which will submerge over 210 hectares of forests that abuts the Dandeli Wildlife
Sanctuary consisting of rare Hora and fauna. The existing 6 dams have already submerged over
32,000 acres of forests m uttara Kannada. The over is also being polluted bv the Dandeli Paper Mill
which discharges its untreated liquid effluents directly into the river. In addition, there is also illegal
sand mining on the banks of the Kali River that has been reported widely in the regional newspapers.
Murdeshwar Power Corporation Limited (MPCL) proposed the 7th dam to generate an additional
power of 18 MW, but the dam will significantly add to the burden on the river, which has been
dammed repeatediv to generate an excess of 1000 MW of electricity, in fact, the total power
6/3/03
r
Page 5 of 6
requirement of the Uttara Kannada district is only 17 MW. Yet, there are villages in Uttara Kannada
that languish in darkness. Clearly, Uttara Kannada has already been producing a lot of power for the
rest of the state at high costs to the rich forests of the district and the people who depend on the river
and the forests for their livelihood. Besides, this power from MPCL will cost over 15 times the cost
of hydel power produced by the state-run KPCL according to some estimates. The forest and
ecological wealth of this area is invaluable for lhe people of Karnataka and needs to be protected
from further destruction by adopting sound developmental and ecologically appropriate development
policies. The increased power requirements of the state could be alleviated by vigorously exploring
other alternatives, like improving the efficiency of the existing hydel plants on the Kali River and by
constructing several micro-hyde! and pico-hydel schemes that generate power at minimal costs with
no submergence.
Construction of this new dam is also a significant violation of the 19th May 1987 Government of
Karnataka order (No. FFD 242 FGL 83} that no further projects involving diversion of forest land for
oilier uses will l>e undertaken on Kali River or its tributaries. Several directions of the Honble
Supreme Court endorse the spirit of this decision. Particular note has to be taken of the fact that
MPCL, along with its consullanls Ernst and Young and Tala Energy Research Institute, have twice
attempted to get environmental clearance for this dam on the basis of fraudulent ElAs. On exposure,
and on the basis of Statutory' Environmental Public Hearings conducted, the Deputy Commissioner
of Uuara Kannada has recommended xhai ihe dam should not be allowed. 1 his view is echoed by the
District Forest Officer in his recent survey on the submergence caused by the dam
Apart from being dammed, the Kali River is also being polluted by the Dandeli Paper Mills that
discharges large volumes of its untreated effluents into the Kali River. The once beautiful and clear
river has been turned into an obnoxiously smelly gutter of pulp waste and sewage at Dandeli.
Repeated appeals by local communities and environmental groups to gel this plant to clean up its act
have had little support from the regulatory agencies. The Kali Bachao Andolan is not demanding a
closure of the Dandeli Paper Mills - which will alfcct the employees of the mill. Rather, the
emphasis is on getting the mill to clean up its operations which will be of benefit to all, including the
employees of the mill.
On the occasion of the World Environment Day, we appeal that you should take the initiative in
ensuring Kali is saved for posterity. Please ensure that:
a) No more dams will be allowed on the Kali.
b) The serious pollution of the Kali from the Dandeli Paper Mills and other sources is ended now.
c) Illegal sand mining on the Banks of Kali and its tributaries is stopped.
Wv support Iho aspirutioris of the people of Utiara Kannada who want Hie Kali Rowing and alive
with lite. Not clammed, polluted and dead.
Sincerely,
(NAME)
6/3/03
Page 6 of 6
(AFFILIATION)
(ADUKtlSS)
rpXA ATT Try jf
1
cow:
a) Shri T. R.. Eaalu, Union Minister of Environment and Forests, Government of India, Paryavaran
Bhavan, Lodi Road, New Delhi i iu OOi. Email: mef@menf.delhi.nic.in
. Cniailtomef^menf ctelhi mcin> or mef@envfor.de1W .nic.-in <mai1to:mef@envfor. delhi. nic. in> and
secyi@envfof.dclhi.mc.m <maUto;secy@envfoi.delhi.nic.in>
b) Kali Bachao Andolan. C/o ESG or PSK Email: esg@bgl.V8nl.net,in <mailto:esg@bgl.vsnl.net.in>
or appiko@saachainet.in <mailto:appikov@sanchainet.in>
PS: If you need a formated version (in Word/'RTF) please email us your request.
PPS: If you have already requested not to be part of our mailing, we apologise. Our software may
have slipped. Kindly let us know and we will exclude you from future postings.
6/3/03
CSE
CENTRE
FOR
SCIENCE
AND
ENVIRONMENT
807 VISHAL BHAWAN, 95 NEHRU PLACE, NEW DELHI-110 019.
March 28, 1981.
Dear Member,
As you know our activities started in full swing from
January 1981.
We plan to have our Annual General Body Meeting at 6.30 P.M.
on Thursday, 16th April 1981 at B-12, Press Enclave,
New Delhi - 110 017.
We will be grateful if you can attend the meeting.
Please confirm the same at the earliest.
Papers regarding our activities will be mailed to you
shortly.
Thanking you.
Yours truly.
BHARTENDU PRAKASH )
CHAIRMAN - EXECUTIVE BOARD
A non-profit society registered in New Delhi, No. 11126
/ Registered Address : D-81 Gulmohar Park, New Delhi-110 049 Tel : 662698
c^iL. A b/aoti ij s
bTi^uC^^ OF CdB
i
s
CoE Organisation structure has three tiers.
Its .cte^ers- citizens of India interested in the study
and application of science and technology for
development - meet every year for the annual general
meeting to elect the executive board for a -period of
two years.
The Executive Board consists of both young
and eminent scientists, journalists, economists and
field workers. The Board meets twice a year and guides
the activities of the Centre. The Chairman of the
Board and the Director of the Centre are nominated
by Board.
The Board has set up a management committee
vzhich c nsists of senior staff >ae.oers of toe Centre
and includes two nominees of toe uOard* (The current
nominees of the board are jjr.V.Garde and
Dr. Narender nehrotra). The management committee,
under authority from the Board, takes decisions in
day to day activities and projects of the Centre.
The Centre also has an advisory council wnicn
consists of eminent scientists and economists fiom
India and abroad.
I1
Ce ntrers St ru ct u re
Annual General Meeting of
Members
ADVISORY
COUNCIL
Executive Board
(meets twice a year)
Management Committee
(meets once a month )
I to II1 !’l
CE_ JTRE ”S ACT
1.
s
The specialised feature service in Indian languages
for Regional Newspapers on Science, Tecnnology
and Development issues :
Indidii language nev/spapers nu.iiber more than
five thousand with a circulation of ;xoout 12 million
covering a readership which must be larger. They originate
Hiostly from small towns and bigger villages, and
therefore, lack resources and capabilities. The Centre
-proposes to supply tnem with information not only about
general scientific and technical issues out also about
subjects of interest to the readership of small towns
and villages such as : low cost health services,
appropriate prescribixig practices, new agricultural
techniques, new developi.ients in small scale and cottage
industries, enviroauient issues like soil fertility,
deforestation, sanitati>n, rural energy systems. Tne
Centre will .make its iiif JHiiation availaole to s.aall
newspapers in the form of articles translated in a range
of region il languages and written in u simple st^xe
easily comprehensible co tie readers. Tne Centre mas to
work closely with health one. family planning welfare
Organisati->as like the Indian Council of i-iedic-’.l
Research, the Fo-aily Planning Associacion of Inciia, in
the preparation of the articles.
/hi ore
2
If this project succeeds and we find good response
from the newspapers we will have to seek more sustained
funding for co rtinuiag toe project. Costs for these services
will be nigh. Since it is unlikely that the costs can oe
covered throujn subscription raised from sm ill newspapers,
the service may h j.vo to be perpetually subsidised.
2. A feature service f<.r leading Newspapers on Science,
Technology and bevelopment issues :
It is felt that the .aedici doe,J not have access to
relevant inforuiation about scientific and technical issues
though there has been a perceptible grov/th of public interest
in them. The service will piv-viae both short news stories
and good analytical articles, written by qualified science
w ri te rs and p ru f e s s i on al s • The a rti c 1 e s, de nli n g wi th
science and technology aspects of sectors like energy, health
human settleiiients, agri cultural research, industrial
development and rural developiiient, will re o ised on
experience derived by inaividunls '.. r/. i.xsti tuti-as in
applying science and tecanology for purpose of development.
To -xelp us build up the c •.pu.oility for tnis service
the UN Centre for Ihumaa settlement in Nairobi ( due to
the special interest t J;un by Dr.
.Kam:•.chnndran) has
given us a sum of $ 10,000 to produce 15 articles on
Technology and xianagemeat related issues c xieerning Human
settle-.tents.
/mo re
3
The UM Information Centre in dew Delhi has given us
a small project to produce six articles on renewable energy
research in India v/hich they intend to release to the Indian
Press before the dairobi Conference on, the subject in
August. The Indian preparatory committee for the c^nfer^nce
has asked the UdIC to produce these articles. The project
has helped one of our members to get a good insight into
renewable energy research in India.
We also have a contract with the dational bevelopxnont
Research Centre in Ottawa which will take 24 of our articles
for the year and pay us for the articles used in their own
feature service which is mainly picked up in "West Africa and
thu C a ribb e an.
The funding prospects in this activity are therefore
reasonably good. Interest in the meULa is growing fur materialon science and technology and over a period of time the
service snould become econuxiiically self-sufficient.
3. Research on major science and technology issues line
Energy, Eaviron.nent, Technology Choice s/io. rmployeient/
Human Settlements', etc :
Vjc have prepared project proposals on the follov.ing
subjects for which we are now socking funding :-
(.hLl.A AA-h
The purpose of this stucy is to lodk into the future
and see how pollution is likely to gr..’..- with increased
industrial, agricultural and uroan duv^lopid^nt in th<j basin.
will not generate any data ourselves out try to pull
together as niuch as possible the existing data from various
organisations including state and central govcrnHieat. The
Central Water pollution Central Board shoul.o, be of help
in providing us tills data.
/mo ru
4
n
like to assess how
We would, through interviews,
„
-role for whom the Ganya wate e
this pollution affects ^ople
th. ,M1n source ȣ llvollhooa.
, cU
on au, fish catch froa the river end accordrag to
.
q frnA th c ntral Xnl^ Fishery Research institute
received from the Central
polluted areas
at Burrackporc fish catch in certain h . of the
the river is going downh
like to Study the possible heUltn
VJc would also
e general population inthousands
effects of pollution oa fnir drinking water straight front
of vill-'.ges Welch draw the
river.
considering the most Indian cities today ua e
it, -id i-hat within 25 years unis uroan
intermittent wat-r supply and tha
,-£ the
■Dopulntio i is expected t-j dou.ola, unless p°
popur aL.xe.1 .
.
rii rficult even to
river is controlled it may he extremely o.niicui
r , .ds of -the urban population,
find water sources to mewt dv
.
, composite and
We would like to stivey these iSoUe. i. ■simply written pamphlet of -about 50-70 pages
g
: Jr to creari a ceaseless ibout the state - - -.i
and the way we are managing a major natural
ree
i
e
,
-i bv U.-I.ChnkraVorty ano. nail ^y-a..a
report Will oe Wxltuel
u.e.
(b) Inprovemo It Of cooling, stoves
‘VJri 13 =
COdSciCU^cCC ChOUf the
to
itv'ilability of fire wooc. m tne cJirur, . ee
increase t.ie av .11 uoiJ. a
. rixth
t . .a to jo unaertakoa ia tae si^uu
-oecial forest orogramnies aeeQ to .
e. ■- i orove the traditioaal
plan together witn progreuimos eo i c
fficiuacy. ;Sovera
ehulh-i- wnich are of abysmally low efficiency.
chulha. v,. ica ar
^sign
. tO CiOVelOO
organisations' have tried m tae pie
_
.
t i xr 4-u > ^roolua cioos not s
uo -o^
chulhns and tocnnologicnlly tn- piooi
insuperable. But so little is known aoout those various
attempts that the problem is apparently Mom
soci .1
/mor^j
'-.id
5*
1 - -1 and one of cd.ssoiainoting the
organisational- in
nature
report which pulls
know-how• The Centre proposed to prepare a
together all the listing information on the subject/
especi illy with a
view to the dissemination of the know-how.
base for further progress in research in
It will provide a
teis field. The report will be written by Rajiv Guptu and
Anil Aganval.
(c) Ru ral s ani t ati
;
growi.ig
bou.y of iaforniation which
There is a •
that the clean water supply prograuime will have
clearly shoves
0.1 t.1^ 1mlth of the people u-iless accompanied
little effect
by a sanitation progranune. Several iiTtjor rural sanit.ition
progr a iuues vzore att-
aipted in I.iaia curing 1950 .out idany of
social -.aci behavioural
th-ia failed bee .use of technolo giC ■ -I /
proiiio tiag
factors. Very littl governaieat funds are spent Oil
rural sanitation progr hUus. The Centro proposes to do a
popular out well researched p-uaphlet of ooout 50-60 pages
which looks at the cunt at state of kauwluego regarding furnl
ifitioa pre.-r aiu’es su as to create
greater public
aware.less moat the aued. to uncert .he a spect .1 ef_ej.t
tills direction. The .• iper will bo written by Dr. Kit ■ hukherjU
i.id technology
p?.^pl- i < t-1. hill
(d) The lafouiiation Progr ninie on sea
effect! xg. tll;^ lives pf
BeC us
.ice
of the Cl Se r.-lati -Ji hip We W JuVe
hr. Chancli Pr’.shad Bhatt/
Axiool ’u i i Uttar ik/;-'. id., it ni.'u
of
i
t.4^ le .dors -ef cue ChipkO
.. .,ssible for us to i.iitiate
on a Sxdall o -.sis a ’
People’s Sci^-Ce .-xov-aieat*
Uttnrakh?.nd regie.i/
bJae..lrit on tue lines Qf exxe xdoveuient
ia trie
in Kerala organised by the Kerala bastra SXxitya Purisanc.
- 6 ‘Wo could begin by producing literature on the ecology/
research endovzniaonts# health and human settlements aspects/
industrial ana agricultural development aspects of the region
which could bo dissoxainatod through the nowsp ipors of the
region and given to school teachers there through tno Chipko
Ando1 in volunteers. The project would help people to get
better u.iderstanding of how local resources could be better
utilised for their developm^. its..
stiff iduiiib^rs
This unuld bo a xiiajor project and .ill
of the Centro will have to conttibuto : subs t 'iu ti •’ll p ropo rti on
of their tinie fc r it. ‘We would/ t.xjrufoitt, ii.Lvo to sc-k n
major funding 3< urc~ unci work jointly with orgn.iisations Ilk j
The G indhi Peace Foundation/ Kerala b istra Sanityu Parishud
etc •
>
- 6 -
Wo could Degin by producing literature on the ecology,
re scorch ^ndowriiaents, health and human settlements aspects,
industrial and agricultural development aspects of tne region
which could be diss> xainat-d through the uewsp ipers of the
region n.id given to school teachers there tiirough the Chipko
Andol :.n volunteers • The project would help people to get
better understabiding of how local resources could be bettor
utilised for their developments.
This ";-;Uld be a major project ind all the staff metd>urs
of the Centre will hn.Ve to contribute a substantial proportion
of their time fir it. We woulo. therefore,, n.'.Ve tO ScJi O
hinjor fu.iding S'. urc~ and work jointly with organisations like
Th
Gandhi Pe \ce Foundation, Kerala bastra Sniit-a Parishad
etc <
V
*
1
v o i_> Luu x x At^ij /aS
T<j luplionjj
: Getting
telephone is
proving to be n oig problem t/j us especially with
cl'ie fr^uzi ig of the xSIehru Place e change.
Vic can neither got a nev; connection nor
get an old one transferred even though a friend
has offered his for our use.
Wo would very itiuch apiorociate if our
iix^cutive Soard insiders can h^lp us to got u t-l^ph^no
soon.
CSE/iiBy A£ri 1.1
S?WT FUR 1980
During 1980, must of tho activities wuro
aimed at building up the Centre. Total sum of
was spent on acquiring registration,
Rs. 6099.52/-
equi^nent like typewriters, steel and wooden racks
for books etc.
AS
there vzere no funds in the Centre except
Rs. 3oo/—
which WQ received as mehiOersnip
fee for 1980, to finance the .above purchase, the centre
received leans from ^r. Anil Agarwal, Dr. Jareader
hehrotra and ar. P.n.anuji of .o. 15300/, Rs.1450/-
and Rs. 120/-
respectively.
A sum of Rs. 4191/30
14r. Agnrw al • Moweve r.
h '.s o-cn lutunuid to
:.ill tli- siiais r^a-iia outstanding.
We hope that in 1981, We v.'ill pay back tlisjir loans.
The Centre is using ar. Agarwal’s personal
r
library for its work aid receiving newso .pers and
■publications from him. lie also ca atinu^s to work
.s a
iienorary Director. The Centre bears only his travel
^SvpexiSeS in D-lhi.
»
AT I Oil. OF A PPOXpTi ppT_ OF, APPA^Q.^ s
Wc 1'1 avc requested iicssrs. VJary.ni biagh
C co. to De vur auditors. They have -.Ireudy prepared
our balance sheet for 1980. V:e seek the approval of
the executive Board to ratify this appointment.
c3£,/£B/^J.3' ri 1
1 ,/iAltc -VJI
TxiE Cl^IGE JEN, bIR£CT-.jR
As .1^. Ag?.rwal will
extremely busy with
th<j public-iLioii uf Juumul on bciunce and
Tuchaoljgy c-s its Editor, he weuld like to resign
fr.jia th- post of director of thu Centre. I-Ie would,
however,
rcHi?.in closely ass-ci.it—d ?_s Editor or
th- C-ntre’s public ation a ad also cOxitiaue to
suiv- o.i its Er.ecutivo Board and .aaiiag-nieat
coiamitt-u. In his place, w- would like to propose
Dr. Rariidal D isgupta, f under Assistant Ecat->r
of t...- Diadustaa Tildes to w-rk is i_/ir-ctor.
I
I
■
I
TIu-; QHAJGB IN DEPUTY DIRECTOR
”**
**
•* ’*
**■
*
**"' *"
•’•
•
*
-•** •••
W«
w
*-•••
M
4V
•
».wa
x-irs. Sumi Chouhzin is extrcidely ousy
\.ith various other activities uud she cannot
devote mucli time. Therefore, she would like to
resign fr^hii the post of Deputy Director of the
Centre.
She would, however, continue as th
xil^atbcr of the r,! ecu civ. Board. In her place, wo
would like to propose jDr< ^areader Aiehrotru who
is .ueiilber of ti
Dnecutiv^ Board to work as
Deputy Director.
CSE
CENTRE FOR SCIENCE AND ENVIRONMENT
807 Vishal Bhawan, 95 Nehru Place, New Delhi-110019
INFORMATION SERVICE ON
Science and Society-Related Issues
1981.
EMBARGO : Use on or after KlUtsday August 6,
SHOPS WHICH SELL SC TENT IFIC ANSWERS
coW«w'*'’V rtStVw»'k’’'o0‘>
In almost every university in Holland there is a ‘science
shop' where you can get an answer for any scientific or
technological problem you may have. The shops clients have
got to be poor, with no recourse to the established scientific
structures of the country, to get help from these shops.
Author Rita Mukhopadhyay is a research associate with the
Centre for Science and Environment in New Delhi and
specialises on problems of health.
Copyright CSE 1981
1050 words
The Centre for Science and Environment is a non-profit, non-governmental, quasi-academic research organisation that has been set up
to increase public awareness of the role of science and technology in national development. The information service issues news
and feature items in six languages—Engjish, Hindi, Marathi, Bengali, Malayalam and Punjabi—prepared by a research team consisting of
professionals qualified in science and technology.
Director: P. Dasgupta
Director of Research : Anil Kumar Agarwal
CSE/1
SHOES WHICH SELL SCIENTIFIC ANSWERS
By Rita Mukhopadhyay
HOLLAND August 5 (CSE) - Almost every University in Holland
has a shop where anyone can ask for scientific information
free of cost.
These ‘science shops’ especially serve those
groups and individuals who have little money and little access
to the established structures of scientific and technological
research: trade unions, women’s groups, environmental action
groups, neighbourhood committees, etc.
Science shops do not undertake any research themselves.
Th^ir job is to find a researcher who is prepared to solve
the problem. As Mr. Hans Kluyfhout of the Amsterdam University
Science Shop puts it: ’’Science develops within universities
end society develops outside it. Science shops are called in
to intermediate between the two.”
Science and it'$ use in society is determined, like any
other commodity, by an economic demand and supply relationship.
Those who are poor and cannot demand science do not get
supplier. Science shops in Holland are a part of a movement
that began in the early 1970’5 to provide a counterweight
to the industrial domination of the country’s scientific
research.
Concerns like the energy crisis, the growing economic
power of multinational corporations, increasing environmental
pollution, and new automation technology leading to mass
unemployment and greater control of workers, have all fuelled
the Science shop movement in Holland.
In 1977 the University of Amsterdam decided to start
an Agency for Socially Relevant Research and made a beginning
by planning an inventory of probable questions from trade
unions and environmental groups.
The idea of a science shop
/more,..
CSE/2
was born soon after.
i
Science shops generally respond to clients who need
information to solve personal, social and
problems.
occupational
Customers who require information for financial
gains are refused.
The shops arrange to get the research done by students
and teachers from within the university but sometimes also
from outside.
The problems are often taken up as dissertation
topics by students or included in the existing curriculum by
the faculty. ,No monetary transact ion is involved at either
end.
The academic does the research on a voluntary basis;
Th© problems posed to the science shops have covered a
wide range of subjects but mostly concern industrial hazards
and occupational health.
For instance, the science shop at
the Delft University of Technology was asked to investigate
on the possible effects of keeping small storage tanks of
liquefied petroleum gas (LPG) within residential areas. The
basic questions asked by the residents were s a) what are the
risks of injury or death from explosion of an LPG tank; and,
b) what arguments can be used to convince local authorities
about the risks?
While the first question related to physical and chemical
research, the second concerned the complex social, political
and psycological attitudes of the public and the authorities.
As a result of the findings of the science shop, the LPG
storage tanks were indeed removed frorn the residential areas.
The science shop at the University of Amsterdam was
once asked by the employees of a newspaper printing press
to investigate why people working with a certain 1 letterflex
process 1 inevitably suffered from skin and eye irritation..
The Department of Chemistry found that the process involved
/more. . •
CSE/3
handling dangerous chemicals.
The Labour Inspectorate
recognised the conclusion and ordered the producer of the
letterflex machine to supply details of materials used.
But in many cases the shops find that scientists themselves
do not want to take up research.
Tn one case, for instance,
a science shop found it very difficult to get any scientist
to investigate a problem posed by a group of women prisoners.
No researcher wanted to do anything with convicted people.
Finally when the research was undertaken, the concerns of
prisoners were proved
right.
In another case, a shop found it impossible to get anyone
to investigate an enquiry about the impact of uranium radiation
on people's health in factories. Professional self-interest
prevented nuclear scientists from getting involved.
Scientists anywhere face the choice of either doing
curricular science without questioning its social relevance or
working towards social causes, gaining in the process unpopularity
from university authorities.
In Holland an attempt is being
made to avoid this to some extent by institutionalising science
shops. The science shops are now being integrated into the
university structure.
The funds provided by the university
are mainly used as salaries for part-time shopkeeperso
Some
representatives from the shops are also included in the
advisory board of the university's governing council. ’’These
incentives have made it easier to obtain student cooperation,
continuity of projects is guaranteed; and the security of the
shop is now considered a matter of contract”, explains Mr. A.
Weidemeijer of the science shop at Delft.
But there are fears that this institutionalisation
process could lead to pressure on the shops. “The risk is
higher in technological universities where most of the funds
are controlled by industrialists.
They want to convert us
/more...
CSE/4
Their idea is, if you cannot beat
them - join them", quips Mr Weidemeijer.
into a technocratic forum.
Some science shops try to retain their freedom of action
by remaining department-based, like the Chemistry shop in the
University of Utrecht®
Meanwhile the changing attitude of the
student participants in the science shops is also posing a
, problem. Their stand has shifted from social relevance to one
more of material expectations in the form of cash or academic
credits. This is likely to cause a shift in the priorities of
the shops. They may no longer remain platforms for protest.
But one thing the science shops in Holland are certain
about: they do not wish to take up questions from outside
Holland even as their fame does spread abroad.
A science shops
was recently asked by a minority group from South India living
in Sri Lanka how is it that they are mainly undertaking one
type of job:construction and maintenance of telephone cables?
Any Researchers for such a problenuhere?
CSE
CENTRE FOR SCIENCE AND ENVIRONMENT
807 Vishal Bhawan,
95 Nehru Place,
New Delhi-110019
INFORMATION SERVICE ON
Science and Society-Related
Issues
EMBARGO: Use on or after Thursday, July 30, 1981.
DEVELOPING COUNTRIES NEED
SUN AND 0IL-
The developed countries will be able to avoid confrontation
with the Third World at the UN Conference on New and Renewable
Sources of Energy scheduled to be held in Nairobi next month
(August 10-21) f if they do not take- a stand ’you use. the sun
while we keep the oil1. In an interview, the Secretary*
General of the conference-^ Dr. Enrique Iglesias says "this
conference is going to be both political as well as
technical.11
Author Rally Ghpta is a research associate with the Centre
for Science and Environment in New Delhi and specialises
on problems of rural energy.
Copyright CSE 1981
1050 words
CEtL
560 001
The Centre for Science and Environment is a non-profit, non-governmental, quasi-academic research organisation that has been set up
to increase public awareness of the role of science and technology in national development. The information service issues news
and feature items in six languages—English, Hindi, Marathi, Bengali, Malayalam and Punjabi—prepared by a research team consisting of
professionals qualified in science and technology.
Director: P. Dasgupta
Director of Research : Anil Kumar Agarwal
i
'll
(,f"'
i
I
'
I
* 1
11 ■ ;
CSE/J.
DEVELOPING COUNTRIES NEED BOTH SUN AND OIL
By Rajiv Gupta
The Hague, July 29 (CSE) - Renewable energy is politics,
according to Dr. Enrique Iglesias, the Uruguayan secretary
general of United Nations Conference on Nev/ and Renewable
Sources of Energy scheduled to be held in- Nairobi next month
(August 10 21) a
;
"This conference is going to be both political as well
as technical". Dr. Iglesias told journalists from developing countries at a seminar organised recently in The Hague.
,by Earths can.,. a UN-supported media information agency.
Some 3000 delegates from nearly 150 governments are
expected to attend the NV
bi conference. Several.-headset
of state and-oxccutive chiefs are^expected to attend,
including Prime Minister Indira Gandhi of India.
"For the first time in hnman history the impending
world energy rfensition necessitates th'^t the internBtiona.1
community work and debate collectively dn possible energy
options" explained Dr* Iglesias, probably the seniormost
Latin American official in the U.N.
But how important is the role th^t renewable energy
can play in this transition and what support are the
developed—countries prepared to provide to developing
countries to smoothen this transition, are some of-.the
political questions that developing countries are.asking
in the-context of the conference.
Tuere are many experts who fear that renewable energy
is simply a slogan that is- being used by developed countries
/more...
CSE/2
to push developing countries away from the use of oil
Deve-
loping countries depend heavily on. oil but together they use
only eight per cent of the world’s oil supply.
If the developed countries were to set their houses in
order, that is, make less wasteful and reduced use of oil and
make special efforts to see that developing countries have
easy and preferential access to their miniscule use of world
oil resources, developing countries would face few problems
in meeting their energy needs.
’’Development of renewable
energy must not be interpreted as a rationale for limiting a
developing country’s access to conventional sources of energy”,
says Dr. Iglesias.
’’Oil”, he says, "will continue to dominate the world’s
energy scene for the next three decadeso
New and renewable
sources of enercy can make a significant contribution, but
their role and potential should not be overstated.
Howeverz Dr. Iglesias hopes that the conference will
He
not turn into a renewable versus oil debating forum,
believes that developing countries need both.
Though the
short-term role of renewable energy may be limited, the long
term potential is an open question and may well be very large.
Therefore, it is important that all attempts be made to
develop sources of renewable energy.
Secondly, Dr. Iglesias argues that renewable energy is
equally good for both developing and developed countries.
Un
fortunately, much of the debate in the West has associated
renewable energy with a certain moral and political mystique,
and with value-loaded names like ’green’,
’soft’ and 'appro
priate ’ energy, arguing that these forms of energy are espe
cially suited to developing coutries.
As a reaction to this, several experts from developing
countries have labelled renewablerenergy technologies as
/ more,o.•
second class, backyard technologies that the West wants to
push onto an unsuspecting Third World.
They claim that the
tenor of the renewable energy debate in the West reveals yet
another example of the determination of the rich countries of
the world to .keep the third world in economic and technological
subjugation.
There is a fear that the developed world, in its current
self-centred mood set by the governments led by President
Reagan and Prime Minister Thatcher, may just want to offer a
few palliatives or crumbs to the Third World at the Nairobi
Conference.
A global fuelwood programme, for instance, would
certainly help over a billion poor people whose energy
supplies are today under enormous pressure.
But most deve
loping countries possess the skills and the resources to
By
organise fuelwood plantation programme on their own.
focussing on firewood as the major item for north-south
cooperation, the devcloned countries would avoid assisting
the developing countries with better access to more sophisti
cated renewable energy technologies like solar cells, which
are today becoming increasingly controlled by large multi
national companies.
North-South cooperation in renewable energy should
take place not only in the context of overall development
goals and energy planning but also in the context of all
relevant renewable energy sourceso The issue at hand is
not whether an energy transition will occur but whether
the international community will manage the inevitable
shift in an orderly, progressive and integrated manner,
asserts Dr. Iglesias.
The plan of action prepared by the secretariat, which
will be debated at the conference, focusses on the development
of local capabilities for national energy planning and
/ more
CSE/4
research and development; integration of renewable energy
into overall energy programmes; implementation of national
policies and development of institutional arrangements
that promote the use of renewable energy; and, mobilisation
of adequate resources at national and international levels.
"Develoninq countries'1, says Dr. Iglesias, "should
not be used as guinea nigs and so the conference will give
particular importance to develop proper facilities for
testing and demonstration of new energy technologies o ■’
Several developing countries have bought immature solar-
powered equipment which has broken down fast*
"The Nairobi conference can become an historical
event if taken in the right perspective", believes Dr.
Iglesias.
It certainly will be an historical event for
the United Nations which has not yet discussed the subject
of energy in any form uptil now, despite the overriding
international importance of the subject.
The OPEC member
states have generally opnosed any discussion on energy with
in the UN and their wishes have been consistently respected
by the countries as a block.
Most developing countries will
orobably opnose any Western stance which tells the OPECs
"you created the problem, you solve it’-— in other words
that the major funders for any large international programme
in renewable energy should be just OPEC.
CSE
CENTRE FOR SCIENCE AND ENVIRONMENT
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DEATH BEFORE BIRTH ; THE FATE OF THE UN FUND ON SCIENCE AND
TECHNOLOGY ?
The fate of the prestigious UN fund on science and technology
today hangs in balance. Unless the current mood to cut
international aid spearheaded by the governments of Britain
and USA changes after.the North-South meeting in Cancun,
Mexico in 1 at-Q_’October - which will also be attended by
rime Minister Indira Gandhi ——the fund could disappear
altogether. This development coming soon after the refusal
of the leading Western governments to set up a new UN agency
to promote- renewable sources of energy at the UN sponsored
conference held in Nairobi in August, shows the depth to
which the spirit for international cooperation has plummeted.
Author zHiijL Ag^rwcil is Di rect or of Re s e o rch t Centre for
Science and Environment in New Delhi.
Copyright CSE 1981
930 words
The Centre for Science and Environment is a non-profit, non-governmental, quasi-academic research organisation that has been set up
to increase public awareness of the role of science and tebhnology in national development. The information service issues news
and feature items in six languages—English, Hindi, Marathi, Bengali, Malayalam and Punjabi—prepared by a research team consisting of
professionals qualified in science and technology.
Director: P. Dasgupta
Director of Research : Anil Kumar Agarwal
i
!
DEATH BEFORE BIRTH : THE FATE OF THE UN FUND ON SCIENCE AND
TECHNOLOGY ?
By Anil Agarwal
NEW YORK, September 25 (CSE) - As a result of the steady
deterioration in North-South relations, the fate of the United
Nations science and technology fund today hangs in balance.
The fund was set up after protracted, and often painstaking,
negotations at the world conference on science and technology
for development held in Vienna in 1979.
But unless the current
mood to cut international aid spearheaded by the governments
of Britian and USA changes after the North-South meeting in
Cancun, Mexico in Imbo October — which will also be attended
by Prime Minister Indira Gandhi — the science and technology
fund could disappear altogether.
The intergovernmental committee (IGC) which oversees the
fund met in New York in late Augu.st (August 24-Septembcr 3)
and failed to agree to convert the current status of the fund
from that of an interim to a. permanent fund or even to extend
the life of the interim fund itself. The intergovernmental
committee has simply requested the General Assembly of the
UN to take a decision instead on the fund during its current
session.
If the Assembly fails to do so, the interim fund
will run out of a mandate to exist after December, 1981. The
General Assembly is not expected to discuss the fund before
late November or even early December and this has left the'
fund‘s secretariat in a state of jitters.
This development coming soon after the refusal of the lending
Western governments to set up a nc?w UN agency to' promote
ronewab1e sources of energy at the UN conference held in
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Nairobi in August, shows the depth to which the spirit for
international co-operation has plummet eel.
✓
The Vienna conference had decided to set up fund on an interim
basis for two years initially,it would provide time to work
out the details of a permanent financing system. An expert
group set up in 1980 under the chairmanship of Lars Anell, director
of the Swedish Agency for Research Cooperation with Developing
Countries (SAREC), submitted its report in July, 1981.
The
group recommended that some US $1.2 billion be raised for the
period 1983-85.
The administrative costs of the fund, it said,
should be raised through compulsory assessed conftrib.utions
from each member-nation of the UN in the same way as the UN
raises funds for its regular budget.
The IGC ironically never got down to discuss this report.
At its August meeting, the Western countries argued that they had
not had sufficient time to study the report.
The EEC proposal
that the interim fund be extended was opposed by a unanimous
'•hird W^rld which felt that as it had already been agreed at
Vienna that the full-fledged financing system w'uld begin from
January, 1982, this was going back on an earlier international
agreement. It was, however, preferred to accept an extension
of the interim fund only if there was a simultaneous declaration
about when the permanent fund wuild begin.
But the delegations from the donor countries, especially
the US, argued that th y could not commit themselves to the
establishment of a new UN entity until their country’s i
administrators and legislators had given them a mandate to do
so.
Given this impasse, the TGC simply passed on the report
of the expert group to the General Assembly for its consideration.
/rn''rc» . a
CSE/3
Meanwhile, Tunisia has taken the initiative to sponsor a
delegation consisting of ministers*from 12 developing countries,
This delegation was visiting ’Washington, Bonn, Paris and Brussels
(EEC) last week to canvass support for the fund and it hoped
also to convince the leading Western governmonts tQ put science
and technology on the agenda of the Cancun meeting. In July,
another similar delegation had visited Venezuela and various
oil-rich Arab countries to seek the support of the OPEC nations.
This delegation was especially Well received in Saudi Arabia
and as a result a Saudi prince had joined the second delegation
last week.
Funding pledges for the interim fund remain well below
the promises thnt had been made at Vienna , where it was resolved
that the fund would raise at least US $250 million for the
two year period 1980-81.
But the fund has been able to get
for only about US: $40 million and only US $19 million
in cash uptil now. Most of these funds have come from smaller
European countries, mainly Holland, Austria, Italy and the
Scandinavian countries. The US has not made any contribution
un<3 this has kept Ssucli and other Arab funding away as well.
pledges
The Swedes too are now talking nb^ut 'burden-sharing
by the
larger Western powers.
The US delegation at the Vienna Conference had informally
talked about providing US $50 million for the interim fund
but later the Carter administration talked about c antriDutiag
only US $15 million or 20% of the total contribution^ made
by other countries, whichever was less.
Even this did not get
pass the US Congress. The Reagan administration hod made
no effort to contribute to the fund and, in fact, is said to
have scriius misgivings about the fund, especially about
whether it is any different from existing UN funds.
/more..•
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In its two ye^rs, the interim fund has certainly shown .that
there is considerable demand for science and technology projects
in the Third World.
The fund has received over US $1 billion
worth of proposals, nearly a quarter, of which arc for research
on renewable sources of energy. The fund is different from
!
other U.N. funds like UNDP in that it is not just prepared to
support immediate problem-solving projects but also support
programmes aimed at building long-term national capabilities
in science and technology.
CSE
I
1
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ALL THE WORLDS COCONUTS
Coconut^-research needs a revolution,
The tre.€; is under
attack from diseases, many of which are still ii
stood by scientists.
Indian scientists are now making
an attempt to collect coconut varieties from all over the
world, which may give them disease—resistant genes* Last
j
week, three scientists left for a tour of seven Pacific
islands to collect coconut germplasm.
4•
Author Ujjayant N, Chakravorty is a research associate
with the Centre for Science and Environment in New Delhi,
Copyright CSE 1981
65< ^ords
The Centre for Science and Environment is a non-profit, non-governmental, quasi-academic research organisation that has been set up
to increase public awareness of the role of science and technology in national development The information service Issues news
and feature items in six languages—English, Hindi, Marathi, Bengali, Malayalam and Punjabi—prepared by a research team consisting of
professionals qualified in science and technology.
Director: P, Dasgupta
Director of Research : Anil Kumar Agarwal
ALL THE WORLD’S COCONUTS
By Ujjayant N. Chakravorty
PORT BLAIR August 2 (CSE) - Scientists in India are giving
tetracycline injections to coconut trees but with little
effect.
This is part of a despe.rate attempt to combat plant
diseases, many of whic>\ are of unknown origin and are
afflicting.nearly 30 per cent of the area under coconut
plantations in the country.
The annual loss is estimated
to be 300 million.;nuts worth about Rs 700 million.
This is a colossal waste of coconuts, especially at a
time when there is a global shortage of vegetable oil.
Moreover, the coconut tree yields not only oil but also
food, fuel., coir and wood for building.
Amongst trees, coconut is affected by a surprisingly
large number of diseases - about 25 - all of which a.re
baffling researchers the world over.
The root wilt disease
of Kerala (a debilitating disease comparable to tuberculosis
in man) is a major killer.
Cadang-Cadang of the Philippines
(in local terminology ’kill-kill’) and the lethal yellowing
disease of the West Indies, are other major diseases.
Because of the havoc created by these diseases, a large
\
■
number of coconut varieties are becoming extinct.
This
erosion of the coconut ’genetic stock* in nature has le$ to
worldwide concern. It is important to preserve all these
varieties to breed new and better varieties for future
plantations..Leading coconut growing aJMfe of the world like
X
the West Indies and the Philippines are already planting
hybrid varieties for increasing productivity of coconut,
plant art ions.
.“There is a need to internationalize this research effort”,
t
says Dr. N.M. Nayar, the director of the Central Plantation
Crops Research Institute (CPCRI) located at Kasaragod in
/
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y
CSE/2
Kerala,
The Institute, with 65 years of experience in coconut
research, is going ahead with a plan to create a world coconut
germplasm centre in the Andaman Inlands to collect, preserve
and breed most of the world’s coconut .varieties.
(The word
H
germplasm" essentially means a seed but for a scientist it
means the part of the cell that reproduces).
The CPCRI has obtained a grant of US $ 50,000 from the
International Bureau of Plant Genetic Resources in Rome, an
affiliate of the Food and Agriculture Organisation of the United
Nations.
Last week, three Indian scientists started a tour
of Papua New Guinea and various Pacific islands like the
-Zlsinrds Solomon^/Ttew Ca/edonia, Fiji, Tonga, Samoa, and T: ■i.:i.i
thousand seedlings of different varieties of coconut trees wii
be collected.
The Institute proposes to raise these seedlings off the
■ Wandoor coast, 20 kms from port Blair in the Andaman and
Nicobar Islands .
The Tarmugii island, five kms. away from
Wandoor, has been earmarked for housing the world centre but
the infrastructure still has to be built,
"The Andamans are
a natural coconut growing area and, hence-, ideal for a coconut
research centre". Dr, Nayar points'out.
Additional funds are being sought from the United Nations
Development Programme (UNDP) to send similar expeditions to
other pacific islands and coconut growing areas of the world.
According to Dr. Nayar, the FAO is showing keen .interest
in the establishment of a world centre for conservation of
coconut germplasm.
By using these different varieties of coconut trees,
scientists hope to breed not only new coconut plants which are
immune to plant disease but also plants with higher productivity,
more sugar content, rapid maturity and other desirable qualities.
/more...
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There is a strong need for more collaboration in coconut
research/ argues Dr. Nayar. Isolated research projects like
the FAO-funded project on Cadanga-Cadanga in the Philippines
and British sponsored research on lethal yellowing have all
yielded good results.
But a coordinated international effort in evolving new
coconut strains would be a better approach, Similar efforts
in rice and wheat have revolutionized world agriculture in
cereals.
In this context/ the proposal fora world coconut germplasm
centre is indeed a step in the right direction/ feels Dr. Nayar.
CSE
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CALCUTTA : PLANNING FOR DREAM TOWNS
Very soon, Calcutta will have 22 new work towns to accommodate
incoming migrants as well as the cityfs poor. This grandiose
scheme comes close on the heels of glaring failures like the
Kalyani township which stagnates even to-day. Can Calcutta
afford 22 more Kolyanis ?
Author Ujjayant N, Chakravorty is a research associate with
the Centre for Science and Environment in New Delhi and
specialises on problems of human settlements♦
Copyright CSE 1981
1475 words
The Centre for Science and Environment is a non-profit, non-governmental, quasi-academic research organisation that has been set up
to increase public awareness of the role of science and technology in national development. The information service issues news
and featuie items In six languages—-English, Hindi, Marathi, Bengali, Malayalam and Punjabi—prepared by a research team consisting of
professionals qualified in science and technology.
Director: P. Dasgupta
Director of Research : Anil Kumar Agarwal
I
CALCUTTA :-PLANNING for dream towns
By Ujjayant N< Chakravorty
CALCUTTA September 13, (CSE) - 'Township development' is thenew catchword in Calcutta's urban planning. The Calcutta
Metropolitan Development Authority is going ahead with
ambitious plans of building 22 now satellite towns on the
metropolitan fringe. This follows the CMDA's strategy of
developing poly-nodal growth centres to contain the onrush o
■massive rural migration’ to the city. In fact, work has
already started on three of these townships, namely Kona (m
Howrah)and Vaishn-vghata patuli and Dhapa in East Calcutta.
Each of these 'work towns' is also intended to house selected
groups of population, for instance the washermen, milkmen and
tanners already living in East Calcutta or the small scale
industry and foundry workers in West Howrah.
Over the years, however, hinterland development has reduced
migration into the city to a trickle. Calcutta city is
growing at only 0.6 to 0.7 percent every year, compared to
2.4 per cent for the Calcutta Metropolitan District which
comprises 33 municipalities and three corporations. On the
other hand, the Metropolitan District has a much lower
population density - 6000 per-square km. as against 31,00for the city.
of 22 new work towns on
And so the case for the creation
and costing
the premise of increasing rural migration,
is yet to be
anything between 600-1000 crores of rupees.
established •
from
Even the other objective of housing selected groups
looks hazy. Strangely, the CMDA seems
within the city,
to how such masses of people could be shifted
ignorant as
these towns from their existing locations. A range of
to
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IP
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CMDA officials were interviewed but none could provide a
s at i s f a ct otry an swer. The CMDA secretary Mrs e Leena Chakraborty ’ s
comment was characteristics "Nothing is finalised yet. The
programme is still to be worked out.”
Why then spend crores
on a project so ill-conceived ?
One reajson is the powerful contractors’ lobby.
Calcutta’s
contractors have been making big moijiey out of the CMDA'1 s
projects’.
They have also come to wield cansiderar.le influence
(An instance is the recent, case of a
on it s functioning.
Rs. 2.75 crore job which was awarded to a totally fictitious
contractor by the CMDA) . Massive projects like bull :ing
22 townships would mean a bonanza for them.
Most of these projects are being funded by the World Bank,
and Bank Missions come from Washington six times a year.
Most of the programme guidelines too are formulated by trie
funding agencies.
thinking.
The CMDA hardly does any original
No wonder the CMDA officials are ignorant about
the implementation mechanism of the township programme.
A top official of the Urban Development secretariat of the
West Bengal government commented : "With money from the
Dutch Government, hundreds of ’khatals1 (cowsheds) are being
built.
But whether any ’gwalas1
(milkmen) will at all go
there is anybody’s guess."
All this comes at a time when the CMDA’s massive slum
impr*ovement programme is already under way to . improve living
conditions for Calcutta’s three million slum dwellers.
Why
try to uproot them now by creating townships outside the
city ?
What is of concern is the continued obsession with
grandiose schemes like nefa townships without learning from
the glaring follies of the past. In the 50s and 60s,
Calcutta’s urban planners had proposed a bi—focal groxvth
/more .. •
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strategy for the region based on Kalyani-Bansberia on the north
and Calcutta-Howrah on the south.
Crores of rupees were poured
into the development of Kalyani as a satellite metropolis»
The project was a financial disaster. Kalyani failed to
attract people or investment. Its population has remained
stagnant at 20,000 over the last 25 yearsT
More recently, the Salt Lake township was built at a
cost of 40 crores of rupees, after filling in 10 square km. of
marshy land in East Calcutta. Even after 10 yearsz this township,
with a holding capacity of half a million, houses only 25,000
people. Can Calcutta afford more Kalyanis and Salt Lakes ?
Indeed ’New satellite towns’ which do not mature turn out
to be a double financial loss. Firstly, because of the
astronomical costs which have to be incurred for land development
and township building; secondly, because of the low turnover
of population the common services are less used, resulting
in poor tax recovery to pay for their maintenance or for other
developmental expenditure* The capital investment thus never
gets repaid.
This open-plot development for low and middle-income
housing, which the World Bank calls the ’sites and services’
programme, is not at all relevant to Calcutta for no other
reason than that the target population will never be able to
afford it. The urban poor in the metropolis alone number four
millions,including the three million slum dwellers and three
lakh pavement squatters. Not only is this serviced plot on
the outskirts of the city quite out of bounds for most of
them, they can not also pay for it. There is, moreover, the
problem of the lost job opportunities, higher transport costs
and the brake-up of deep-set socioeconomic tics that such a
/more..o
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i
shift would entail.
Inevitably,such expensive.sites and services
projects have endec! up by housing the urban middle and upper-middle
classes, as is clearly evident from Salt Lake.
*
Through a policy of cross-subsidization, the CMDA is now
planning to allocate 80 percent of these sites to some 60--70,000
poor people.
The three townships Kona, Vaishnavaghata Patuli
and Dhapa, are scheduled to be completed by 1985.
But in view
of the expected time lag of five 'to ten year^ between building
the infrastructure and its capacity utilization by a settled
community (Kalyand. is still grossly underutilized and so is
Salt
Lake), can wo afford to wait till 1995 for some milkmen,
washermen and foundry labour to settle in these townships ?
The East Calcutta township is on the swamps of Dhapa,
three to four kms. further away from the fringe slums of Kasha,
Tiljala and Tangra.
The West Howrah site is 10 to 12 kms,
from Howrah station and eight kms. from the thickly built-up
Howrah industrial area whose industries too are to be shifted
to this township site. Most of these industries —heavy
engineering, jute, small foundry workshops —are already
stagnating due to scarcity and high prices of raw materials,
acute power shortage -md a poor market.
Moving these industries
to new sites may cripple them to a point of no-return, simply
because they will not be able to afford any new investment
in machinery, transport or infrastructure.
Zi major component of the West Howrah township is the
development of a wholesale trading complex-cum-truck terminal
at Kona, All the heavy trucks will then have to unload their
goods to lighter goods carriers for haulage into the city
(13-14 kms. away). Apart from straining the existing transport
capacity, freight costs would increase appreciably and get
passed on to the consumer. The CMDA has alternative plans for
dispersal of city transport, but why complicate the s ituation
by linking it to the new township project ?
/more .
CSE/5
k
Similarly^ mass eviction nf dhobistto far-flung, localities
outside the city w/uld endanger their mears rf livelihood.
Widespread use of detergents has already caused enough damage.
As it is the dhobis in Calcutta arc being exploited by a
string of middlemen — the’absentee landlords who oyzn the. .
water bodies, lease them to other groups who in turn rent out
the dhobi ghats v (washing platforms) to thikadars. The thikaefars
collect orders from laundries and engage the dhobis on wages
as low as Rs. 3-5 a. day.
Settling 1700 of these dhobis out of
some 60-70,000 in the city and that t - o at a cost of Rs. 18 lakhs
is indeed a poor solution.
The East Calcutta townships a re being equipped with
facilities for housing ‘cattle colonies’ which will replace the
’khatals’ (cattlesheds) of the city.
existing
There are 2500
Ratals in the city and their removal will surely
ond
the
insanitary conditions they create in most of the bast is. (The
Dutch government is ass ist inc w ith 7.5 crores of rupees). But
what is perhaps not understood by most planners is the dual
human and economic aspect of the khatals in these bastis.
There
is very little infrestructur-l investment? the sheds have
thatched roofs and arc ^-pen
the sides thus accommodating lot
Most of the milk serves the surrounding residential
The cowdun;- proviles the only srurcc nf ccokir<r fuel
of cattle.
areas.
for hundreds of neighbouring slum homes, The cat11e a11 endants
actually live with the cattle and often sleep on top of the
sheds.
This long and intimate association between man
animal
is rarely given its due weight while planning fer modern cattle
colonies. And herein lies the crux of the Calcutta problem.
Copybook solutions transplanted from the West may just not
work. Every human settlement has some '..©finite s^cio-ec uomic
rationale for growth. Calcutta1 s planners ouchr to question the
insensitivity which isthe basic feature of these plans•
I
/ CSE
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The Centre for Science and Environment is a non-profit, non-govermental, quasi-academic research organisation that has been set
up to increase public awareness of the role of science and technology in national development. Its executive board consists of :
Dr. Bhartendu Prakash (Chairman), Dr. M. S. Swaminathan,
Mr. Ajit Bhattacharjea,
Mr. Chandi Prasad Bhatt,
Dr. V. Ramalingaswami, Dr. Vijay Garde,
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Mrs. Sumi Krishna Chauhan,
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Mr. Krishna Pal Singh. Chauhan/ Mr. B. D. Dikshit, and Mr. Parvindera Singh Mauji Mr. Anil Kumar Agarwal (Director)
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INFORMATION
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Dr Bhartendu Prakash (Chairman). Dr. M. S. Swaminatban.
Mr. Ajit Bhattacharjea,
Mr. Chandi Prasad Bhatt.
Dr. V. Ramalingaswami. Dr. Vijay Garde.
Dr. Narendra
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Mr. Devend,a Kumar,
Mrs. Sum, Krishna Chauhan
Mr. T. N. Nman,
Mr. Krishna Pal Singh Chauhan. Mr. B. D. Dikshit, Mr. Parvindeia Singh Mauji and Mr. Anil Kumar Agarwal (Director)
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