1 Down the Rabbit Hole What the bankers aren’t telling you! ---------------------------------------------------------- An Analysis of Lending Practices Adopted by Banks to Finance ‘Developmental’ Projects in India The Research Collective - PSA February 2014 2 The Research Collective, the research unit of the Programme for Social Action (PSA), aims to facilitate research around the theoretical framework and practical aspects of development, industry, sustainable alternatives, equitable growth, natural resources, community & people’s rights. Cutting across subjects of economics, law, politics, environment and social sciences, the work bases itself on peoples’ experiences and community perspectives. Our work aims to reflect ground realities, challenge detrimental growth paradigms and generate informed discussions on social, economic, political, environmental and cultural problems. Cover Design : Studio Kirukal Cartoon Illustration : Balaji Mohan R Printer : Jerry Enterprises | 9873294668 For Private Circulation Only Suggested contribution : Rs. 100/- PROGRAMME FOR SOCIAL ACTION H – 17/1, Malviya Nagar, New Delhi 110017. Phone Number: +91-11-26687725 | 26671556 Email:
[email protected] |
[email protected] 3 ACKNOWLEDGEMENT We, at PSA, are happy and excited that our work on scrutinising lending to mega projects, which was initiated in July 2011 and spanned over two years, is seeing the light of the day in the shape of this report. Down the Rabbit Hole – What the Bankers Aren’t Telling You! is a consolidation of the preliminary work undertaken by The Research Collective of PSA. I thank the communities of people in Siang, Singrauli, Lohit, Dhenkanal and Shella for sharing their stories and trusting me with information. Vijay Taram, Ba Chyne, Awadhesh Kumar, Amulya Nayak and Bhakta Bandhu Behera - thank you for enabling my field visits to the project areas and introducing me to the communities.