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UPDATE ON DAMS, OPTIONS & RELATED ISSUES SANDRP ISSUE FOUR JUNE 2002

INDEX NATIONAL WATER POLICY Massive anti dam demonstrations in Spain Jalbiradari opposes NWP2002 Turkey, Canada, Malaysia, China Alternative Policies Irrigation Options PM’s Speech: Extracts IRRIGATION A Comment on NWP WATER SECTOR Some Expert voices on NWP2002 GROUND WATER World Bank’s WRSS: Delhi consultation Groundwater Polluted in Kanpur, Hapur, Delhi, SANDRP Comment on WRSS NOIDA… SSP lobby decides Water Resource Secretary WATER SUPPLY OPTIONS Siliguri meeting on Dams and Development LAKES, TANKS, WETLANDS, GLACIERS DAMS RURAL WATER SUPPLY Can Bhakra give water to nearby villages? PUBLICATIONS AVAILABLE WITH SANDRP Kanhar Dam: Saga of injustice Parliamentary Standing Com on Rural Drinking News from the Narmada valley Water IPT demands halt to Maan construction URBAN WATER SUPPLY Indefinite Fast for Maan R&R BOTTLED WATER BUSINESS Financial Mismanagement in SSP WATER PRIVATISATION HYDRO PROJECTS QUOTES MoP’s Façade on R&R ‘Consultation’ FLOODS A letter to Suresh Prabhu POLLUTION SANDRP note on R&R in Power Projects RIVERS RELATED ISSUES Does MoP Understand Environmental issues? FOODGRAINS MANAGEMENT Teesta Hydel: Too many concerns AGRICULTURE Maheshwar: Anti people decision SUGAR Athirapally Public Hearing throws many issues POWER OPTIONS SOUTH ASIA POWER Pak: Tarbela, Thal, CRBCP, Ghazi Barotha POWER FINANCE NEWS Sri Lanka: Upper Kotmale ENVIRONMENT Nepal: Arun, Melamachy WE AWAIT YOUR RESPONSES AROUND THE WORLD SPECIAL REPORT: KARNATAKA’S BLUFF: THE MAHADAYI DAMS ABOUT THE UPDATE The update will be available both in electronic (text and Apologies for the delay in bringing out this fourth issue word versions) and printed versions. The Updates are of the Update covering mostly the months of March and also available at www.narmada.org/sandrp. April. The Update on Dams, Options and Related Issues is being brought out by SANDRP with a hope that it The suggested minimum annual contribution for the will become a medium of useful information Updates is Rs. 100/-, which would cover the cost of dissemination, information sharing & interaction. The printing and mailing. Please send your check/ DD in update has been produced mainly from media sources, Favour of YUVA, payable at Mumbai and send it to our both from internet and printed editions and also from Delhi address. For checks from banks outside Mumbai, official websites and networks. We would be happy to please add Rs. 15/- for outstation check charges. UPDATE ON DAMS, OPTIONS AND RELATED ISSUES know your responses and suggestions about the update.

CONTACT INFORMATION: Himanshu Thakkar, Bipin Chandra, Ganesh Gaud, South Asia Network on Dams, River and People (A YUVA Project), C/o 53B, AD Block, Shalimar Bagh, Delhi 110 088. India. Ph: 747 9916. Email: [email protected] Web: www.narmada.org/sandrp

SANDRP 2 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES NATIONAL WATER POLICY

National Water Policy adopted The National Water Earlier a Jal Sammelan organised by Rashtriya Jal Resources Council adopted the National Water Policy, Biradari in New Delhi on March 5 & 6, demanded that 2002, which is a modified version of the policy of 1987. let people take care of their water resources the way The revised policy was stuck for the last two years they have been for hundred years. Rajendra Singh of because several states had mainly opposed two issues Tarun Bharat Sangh, discussing Draft National Water related to the policy: the clause on setting up inter-state Policy, said, “While the policy says water is a national river basins, and on drawing up the national policy asset, we feel it is community’s property. The people guidelines for water allocations among the states. have been using traditional wisdom to harvest water at Suggestions made by several States in the meeting were the grassroots level for years. The Govt. is trying to incorporated in the policy, which is a guideline for commercialise water.” He said that instead of planned development and management of water promoting water harvesting techniques, the new policy resources at the national level. The meeting cleared the has completely ignored it. People from 17 states river basin clause after toning down the Centre’s role in gathered to express their views. Well known author and the matter. But the issue of water allocation among senior activist Anupam Mishra said “Earlier people states could not be finalised. States will now have to used to take care of their needs through traditional formulate their own State Water Policy backed by an structures. Now they are dependent on the govt. for operational Action Plan within two Years. The State drinking water and we can see the result. Reviving the Policy will have to take into account community structures and giving technology a cultural dimension participation and evolve its own detailed resettlement can help solve our water problem.” and rehabilitation policies for people displaced by the dams. Alternative NWP People’s Science Institute has  Punjab Chief Minister opposed the revised policy formulated an alternative water policy at a meeting at saying “it did not take into account the riparian Dehra Dun on Jan. 30-31 and plans to advocate that the principles for allocation of water to the basin states”. same be adopted. It also plans to take it across (NWP2002, THE HINDUSTAN TIMES, THE HINDU Himalayan communities as Himalayas is at the focus of 020402) this policy. The policy demands that the ownership of water should be with the people. The policy demands Jal Biradari opposes the NWP2002 The Jal Biradari has that small projects should be taken up for WRD and opposed the NWP2002. It has called for a countrywide power generation. movement to oppose privatisation and encourage  Jal Biradari, at a meeting in Himmatsar in Bikaner community control. The NWP2002 does not fulfil the on Jan. 26 and at a convention in Delhi on March 5-6 people’s expectations. The policy emphasises on private has adopted an alternative water policy, which stresses control by declaring water as an asset questioning the on community ownership of water and denounces any fundamental rights of the people. Supply of safe and move to commercialise, centralize and nationalize water adequate drinking water is the prime responsibility of resources and its development and management. The the Govt. This anti-people policy has been declared meeting in Delhi strongly criticized the NWP draft. The despite the fact that an alternative water policy meeting said that in stead of National perspective, WRD document was debated and prepared by large number of should be carried out keeping in mind the local peoples NGOs and was circulated to all the MPs, leaders of all priorities. About allocation priorities, the alternative parties including regional parties, media and academia. draft called for a distinction to be made between This shows how successfully the govt. has cheated and drinking water and domestic water use. Also, among played with the future of common public. It negates the crops, foodgrains should get priority and among the people’s ownership rather strengthens the centralised industries, non polluting and environment conscious control. It is also shocking to see that water allocation industries should get priority. Rejecting the notion of priorities do not specifically mention about the inter-basin transfer of water as in NWP, the meeting protection of the interest of poor population, said that first all local options must be exhausted before marginalized sections and marginalized areas such as tampering with river flows. On river basin drought prone areas. It should have been clearly organisations, the alternative draft has demanded that mentioned that drinking water for whom, gets priority. such organisations should be formed watershed Similarly, irrigation for which crop and region gets upwards. (RASHTRIYA SAHARA 020302, THE HINDU priority. 040302, 080302, THE TIMES OF INDIA-D 070302, RASHTRIYA JAL BIRADARI PR 080402, others)

SANDRP 3 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES New water conservation law in AP The AP Water, Land and Trees Act, 2002, claimed to be one of the most comprehensive pieces of legislation on water conservation and green cover, would come into effect from June 1. (THE HINDU 230402)

SANDRP 4 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES PM'S SPEECH wherever necessary with appropriate group incentives, AT THE FIFTH MEETING OF THE NATIONAL to harvest rainwater in order to recharge groundwater WATER RESOURCES COUNCIL resources. EXTRACTS Let this meeting of the Council send out a powerful Lakhs of villages in our country have become water- message that "harnessing of every drop of scarce or, worse still, no-source villages. Many towns rainwater" is a national priority. We should lay and cities are facing acute shortage of drinking water special emphasis on localized, decentralized and water for industrial use. Depletion of ground water harnessing of water resources, which is most cost- resources, on which millions of rural families depend effective and which also lends itself to better for their drinking water needs as well as irrigation, community participation. continues unabated. This is made worse by the growing pollution and inefficient use of surface water. Our Our catchword should be: "Catch the catchment". culture and tradition enjoins upon us to treat our Wherever necessary, our farmers and rural communities rivers as sacred. Yet, over the past few decades, should be encouraged to bund every field and bind more rivers are getting more polluted at more places every rivulet. This will prevent soil erosion and silting than ever before. Scarcity of water is compounded by of the reservoirs. There is a suggestion that every its unequal, irrational, and unjust distribution in both village should earmark five percent of its area for rural and urban communities. creation of community water bodies, much like the community grazing grounds that still exist in many Therefore, the situation is forcing us to recognize water villages. It is a powerful idea whose time has come. security as an overriding national objective — both as an inseparable aspect of food security but also in its An issue that demands a critical look is the inefficient own independent right. While we prepare for the use of water in our agriculture and industry. challenge ahead, we should critically re-examine the Technologies and methods are available today whereby administrative framework and the policies we have the agriculture sector could cut its water needs by 10 – actually implemented during the last 55 years for the 50 %, industries by 40-90% and cities by 30 –35 % water resources development. without any sacrifice of economic output or quality of life. We are, therefore, left with no alternative but to think radically, and come up with innovative and Another aspect that I would like to emphasize is bold responses to the enormous challenge that our transparency in the implementation of water nation and our citizens are facing. What we need is an projects. The government spends huge sums on these integrated, multi-disciplinary approach. An approach projects. However, the process of incurring that covers not only technological aspects but also expenditures, and its relationship to intended benefits is social, economic, legal, and environmental concerns. often opaque. The supposed beneficiaries often do not have an opportunity to know the details of expenditure In particular, right to drinking water should be on these projects, or to relate them to the benefits that accorded a priority over every other alternative use. are supposed to follow. Therefore, the National Water The policy should also recognize that the community Policy should start a new culture of public monitoring is the rightful custodian of water. Exclusive control of expenditure and outcomes of water projects. by the government machinery, and the resultant mindset The draft National Water Policy has rightly laid down among the people that water management is the the principle of "polluter pays" as the key to preventing exclusive responsibility of the government, cannot help pollution of water sources. While this is welcome, we us to make the paradigm shift that to participative, should go a step further and make it clear that essentially local management of water resources. Both prevention of pollution and wastage of water is a the Centre and the State governments should, therefore, National priority.” (PIB PR April 01, 2002, emphasis actively seek the involvement of the community at all supplied) levels — from decision-making to monitoring the implementation of decisions. COMMENT: What is noteworthy about the above statements is that most of them are contradicting the Nowhere is community control more needed than in the contents of water policy that the meeting was to pass! augmentation, management, and equitable use of While some have passed it off as another of the April groundwater resources. I would like the State Fool’s day, we see a clear pattern in the dichotomy Governments to actively encourage community action, between what he says and what the water resources

SANDRP 5 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES ministry does. Now some may pass it off as another version of the famous mask, but isn’t the issue too serious for that?

SANDRP 6 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES A COMMENT ON NWP-2002 balanced micro-level water management module. To a greater degree, by presenting watershed approach as an The NWP 2002 document could not come out as a pro- appendix to flood control measure the NWP-2002 has people, environment-sensitive, conservation oriented killed the cause of watershed approach, much of which tool assuring equity, justice and ecological sustenance is already diluted by its populist implementations. vis-à-vis water resources development and management. The limitations of water resources have to be viewed from the micro level and one has to live with the reality There is little rationality in the document with regard to that water deficiency cannot be met with the application conservation of water, its protection from pollutants and of technology that can flood a highland and convert the violations, immediate linkages of the water resources deserts green. with land, forest, flora, fauna, agriculture and ecology. There may be a policy shift that all future growth in The document builds the context for a centralised Industry and Urban development and changes in management of water resources. It is explicit in the cropping patterns must adhere to limitations set out by statements that water – a natural resource can be ‘put to the water resources. Emperor Akbar had created beneficial use’ as ‘one and indivisible’ and that ‘rivers Fatepur Sikri as his new capital that did not last, the and aquifers cut across state boundaries’. This attitude newly built palaces and forts were not razed by natural may also be latent in all other macro management disasters or by enemy attacks, they simply had to be proposals of that envisage inter basin transfer and abandoned as there was not enough water around the regulation of inter-state rivers (articles 3.2, 3.4, 4.2 & place. 21.1). Dilip Fouzdar (C-489, Sarita Vihar, NEW DELHI- Most of the document is devoted to the engineering of 110044, water. Here engineering should mean harnessing, (Comment prepared for the Update) controls and manipulation. In fact the three factors mentioned can also be attributed to the root cause of SOME EXPERT VOICES ON NWP2002 major water crisis in the country. The constructive ingredients – one may like to call them dams or It is a victory for the IMF, the World Bank and the irrigation systems – have emerged as the core theme. multinational corporations, which want to trade on The attitude of the NWP-2002 in this respect is no water. different from the one formulated in 1987. Rajendra Singh, Tarun Bharat Sangh (THE HINDU 090402) Inter basin transfer presupposes that one water basin has surplus water resources to feed another water basin. Even after years of colossal financial failures of This often is built on assumptions rather than proven centralized water management, our policy makers data on specific cases and it (inter basin transfer) often seem to find it extremely difficult to accept that emerges as major source of exploitation. The so called decentralised water management systems must be an water deficient basin may also be a politically stronger inalienable part of a national water policy… But then area to demand more than its natural share of water than what do you expect from the in-the-box-thinking of the other that may be politically mute, ignorant or short- our water establishment? Particularly when the box sighted. has been sealed airtight for so long that that it gets no oxygen and certainly everything inside is long dead NWP2002 does not have corresponding supportive and rotten. policies for the views contained in Article 15. There are Sunita Narain, Director, Centre for Science and options to link the aspects of water availability with Environment agro-climatic regions. These are well recognised – by (THE TIMES OF INDIA 0504002, BUSINESS STANDARD further spelling out the limitations of certain perpetually 160402) dry (arid and semi-arid) geographical regions making choices of cultivating water intensive crops or creating Little is done to discourage farmers from growing urban or industrial centres with water demand higher water hungry crops like sugarcane in relatively arid than its natural share. areas of Maharashtra. Edit (THE ECONOMIC TIMES 050402) Watershed approach (Article 17.6) has been viewed as a comprehensive soil-conservation, catchment area The new policy was drafted in 1998 and the final treatment, forest protection measure and not as a document was to be the product of a detailed national

SANDRP 7 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES consultative process. I was part of the consultation initiated by CAPART... Others who were part of this National Consultative Committee on Water included Anna Hazare, Achyut Das, Vandana Shiva and Rajendra Singh. Senior officials of the Planning Commission and all Ministries concerned attended meetings of this Committee. It is a sad commentary on the state of Indian democracy that not one of the final written recommendations made by this Committee finds a place in the new water policy. Mihir Shah (THE HINDU 070602)

SANDRP 8 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES The World Bank’s Water Resources Sector Strategy and large dams and the World Bank surely shares Delhi Consultation On May 20, the World Bank held its responsibility for these warped priorities, taking away Delhi consultation on its proposed Water Resources the precious resources and development opportunities Sector Strategy. SANDRP was invited at the meeting for the people in drought-prone and flood-affected and some of the comments made by SANDRP at the areas. Any activity by the Bank that fails to correct this meeting and subsequently submitted to the Bank, anomaly and instead puts further resources into large specifically about the India section in the WRSS are projects would not be helpful in poverty alleviation in given below. The fact that the Bank expressed its India. inability to invite some of the most well known people’s movements and organisations for the * Para 169: “Efforts to promote reform, however, often consultation says a lot about the “consultation”. had little result.” This last sentence of para 169 captures the essence of World Bank experience in India. Eight Comments on “What the new Sector Strategy might years ago Orissa was a model state for the World mean in India in general and the state of Andhra Bank with India's first state water resources Pradesh in particular” (pp.55-60) consolidation and power sector restructuring projects being implemented there. Today these World Bank by South Asia Network on Dams, Rivers and People projects are so disastrous that the name Orissa seems to (These comments form part of a forthcoming critique of the WRSS by SANDRP) have become unmentionable. Nowhere in the WRSS is OWRCP mentioned. While the Bank has accepted the The India section does not give an accurate account of major challenge is in attention to the environment, the successes and failures of what the World Bank has managing scarce resources in an efficient and been doing, and is at present doing in India. Because it accountable manner etc, there is little reflection of this gives a false impression of the Bank's work in India, the in the Bank's activities in India. At the same time the contents of the section and its conclusions are by WRSS shows the Bank is ready to support yet more necessity quite misleading. large projects. The case of hydropower development illustrates this. In this para the Bank says there is * Para 167: While it is true that Water Resources opportunity for development here, but it is well known Development has linkages with poverty levels, this does that existing hydropower stations are not performing not mean that the large irrigation projects are best most efficiently, and there is huge scope in improving methods of reducing poverty. In fact, evidence shows their performance and addressing the large unresolved that local systems are far superior at reducing poverty: social and environmental problems caused by these unlike large projects, local systems do not generate any projects, many of them supported by the Bank. poverty, and they have much lower social, Moreover, the Bank's bias for large projects and its environmental, economic and opportunity costs. 70% of equation that development means large projects (one the population is dependent on agriculture, most of can see attempt to see this correlation in WRSS) is once them on rainfed agriculture. Any water resources- again apparent. We do not find the Bank saying that related activity that helps the maximum number of the there are many options for development for water poorest of rural people would have the greatest impact resources and energy, and that least-cost and on poverty and the cost of not doing local systems in appropriate options should be adopted in a participatory terms of impact on poverty is much larger than cost way. In the entire WRSS, there is little mention of local of not doing large systems. Today, India, produces water options, groundwater recharging, demand side about 210 MT of foodgrains, but a very big proportion management and watershed development as an option of poor people still do not have purchasing power to in water resources development, nor is there mention of buy the food. Uneconomic and wasteful storage of over drought-prone areas and flood-affected regions, both of 60 MT of foodgrains at the same time leads compelling which are large in India. loss-making and highly subsidised export of foodgrains. One activity that can surely change this picture is local * Para 173: (Note the lack of any mention of Orissa, water development and management systems. Haryana or Tamil Nadu, where the Bank has implemented Water Resources Consolidation projects * Para 168: The World Bank became a key lender to over the last 7-8 years). The claim that in Andhra Indian water sector only after the early 1970s, leading Pradesh, “This ambitious experiment has proved to be to the construction of many big dams, most of them successful . . . water distribution and overall unaccountable, uneconomic, destructive projects giving productivity improved . . .” are rather early and too self- unsustainable and inequitable benefits at best. Today, congratulatory in the absence of credible figures. Other about 80% of India's water resources budget goes for feedback on the Andhra Pradesh experience raises SANDRP 9 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES questions about the sustainability of the institutional Access to clean water a basic human right According to reform, and whether there has been real benefits from an ICSSR-IDPAD research project on groundwater the program so far. availability in India, the states having higher levels of groundwater development show lower level of poverty. * Para 174. The Bank forgot to mention here that it has Punjab, which is having only 6.16 % of its people under a Haryana Water Resources Consolidation Project. If the poverty line, utilises 98.34 % of its groundwater Haryana farmers are so unhappy with their irrigation resources. Similarly, in Haryana only 8.74 % of the systems, does this not suggest that the Bank's Haryana people are below poverty line and it utilises about 75.61 WRCP has been largely a failure? % of its groundwater resources. On the other hand, in Orissa and Bihar where the proportion of people below * Para 176: The mention of an “integrated river basin the poverty line is more than 40 %, the utilisation of the approach” as central in India's National Water Policy groundwater is at about 15.22 % and 35.99 %. As per only shows how shallow and superficial the Bank's World Bank standards, 525 M people in India are below standards are. It is well known to any objective observer the poverty line. NWP2002 has not given adequate that there is little happening in terms of a river basin attention to the linkages between safe drinking water, approach in India. The same is true for most states and sanitation and health. (THE TIMES OF INDIA-D 160402) their water policies. SSP lobby decides nation’s water resource secretary In a * Para 179: The World Bank's hope of supporting surprise U-turn and gross violation of the govt.’s own private hydropower in India, particularly when the most policy on extension of service to officials, the Centre well-known experience in this regard has been such a has decided to grant a year’s extended tenure to Union disaster (the Maheshwar HEP), shows the Bank is water resources secretary B N Navlawala. In a neat essentially interested in imposing what it considers maneuver, the Centre has decided to continue good for the private sector and neither consulting nor Navlawala’s appointment on contract basis by creating keeping the interests of poor people in mind. the post of adviser. And what in official circles is being * Para 180: the discussion here only goes to show once described as unprecedented and extraordinary step, the again that the option of going in for local water systems adviser has been given full additional charge of the in Godavari basin or the drought-affected portions of secretary’s post. According to highly placed sources, Krishna basin does not even figure in World Bank Navlawala’s unusual continuation has come about thinking. If the large projects option is exhausted, thanks to his Gujarat politicians led by Chief Minister. immediate option looked at by the Bank is long Hailing from Gujarat, Navlawala has been pitching for distance, inter-basin transfer of water. Moreover, there the controversial SSP. Sources said he had even tried to is no attempt to understand the experience of lift schedule a meeting of the NCA on April 29 to decide irrigation systems either. Nor is there any effort to get raising SSP dam height to 100 m. (THE TIMES OF people's views on available options. INDIA 300402) * Para 181: The Bank here does not even mention the SILIGURI MEETING ON DAMS AND DEVELOPMENT basin-wide approaches. Thus if Krishna basin is the issue, the people of the other states of the Krishna basin, At a well-attended meeting On Dams and namely Karnataka and Maharashtra, need to be Development in North Bengal and North East on involved, and it should be decided in a participatory April 20-21 at Siliguri, a unanimous resolution was way what kind of development will thus come about passed supporting the implementation of the Report when the river basin approach is applied with the of the World Commission on Dams. The two-day Dublin subsidiarity principle. Nor is there any mention meeting was jointly organised by NESPON and of the need to assess the appropriateness of existing SANDRP. The resolution also raised many questions cropping patterns. on the proposed Teesta Low Dams Stage III and IV to built on Teesta river near Siliguri and demanded that * Para 182: It is questionable whether the Bank should until the questions raised are answered to the be talking about the appropriate incentive system for satisfaction of all, particularly the local people, the political leaders. Secondly, the strategy of picking up projects should not go ahead. Organisations and the lowest hanging fruit first may not apply in irrigation individuals from W Bengal, Bihar, Assam, Manipur, sector. The jury is still out on whether the sequence of Nagaland and Maharashtra attended the meeting. reforms selected by the Bank in AP is indeed the best available or even an effective option. Chief Engineer of NHPC in-charge of these projects also attended the meeting and was unable to answer

SANDRP 10 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES most of the questions raised at the meeting. Many questions were also raised about the Environment Impact Assessment being undertaken for NHPC by the North Bengal University.

SANDRP 11 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES DAMS Fear of seismic impacts of Mullaiperiyar Kerala govt. has urged the Supreme Court that a detailed study should be Can Bhakra dam please give some drinking water to conducted by credible team on the seismic impacts nearby villages? Himachal Pradesh Chief Minister has before deciding raising of Mullaiperiyar dam from 136 demanded water for drinking and irrigation needs of ft to 142 ft. (THE HINDU 090402) nearby villages from various completed dams such as Bhakra, Pong and the Beas - Sutlej link. (TRIBUNE Panel on Tehri rehabilitation The Uttaranchal Chief 020402) Minister has asked the Centre to release a special financial package of Rs 400 M for the rehabilitation of Opposition to Pagladia dam The people of Bodoland the people displaced by the controversial 1000 MW have formed a committee to unite against construction Tehri-I HEP. He has also constituted a high-powered of the Multi-purpose Pagaldia Project on the Pagladia Coordination Committee headed by the Irrigation river, Bodoland MP S K Bwiswmuthiary said. The 23- Minister, to expedite the rehabilitation. He has asked km-long and 26.20-m-high MPBP has already started the committee to ensure safety of the life and property bringing misery to the people of the region. Thousands of all those who will be affected by the increase in the of people from 33 adjoining villages will be uprooted reservoir waters during the coming monsoons. The from their ancestral homes. Ironically, the MPBP will problems of the PAFs, including 5 000 persons (1 100 provide benefits to only 37 villages in the southern part families) still staying in Tehri town should be sorted out of the NH 31. The ‘Pagladia Bandh Prakalpar amicably and they be shifted to suitable places Khatigrasta Alekar Sangram Sammittee’ has submitted immediately. The new congress govt. has expressed an alternative proposal to the Planning Commission. A dissatisfaction with the rehabilitation plans and wants to memorandum has also been submitted to Prime have a new package. (THE HINDU 120302, 080402 & Minister and Water Resources Minister requesting them INDIAN EXPRESS 110402) to scrap this "inhuman and hostile" dam project.  Safety of Tehri Dam still an open question The Tehri (SENTINEL 080402) Project has been challenged on geological, KANHAR DAM: Saga of Injustice Resumption of work seismological, technical, economic, environment and on 40 m high dam on river Kanhar, a tributary of river social grounds. Critics say, "The project is being Son, has provoked opposition from the local people for implemented for providing water and power to Delhi numerous social, environmental and economic reasons. and other areas. The development of the local After completion it will submerge an area of 3000 Ha. It population is not in the mind of the planners and govt." is expected to irrigate 25 772 Ha of land in district (DAILY EXCELSIOR 070402) Sonbhadra and 8 000 Ha in adjoining districts of R & R in UKP is not complete The ongoing Upper Jharkhand and Madhya Pradesh. The dam is evicting Krishna Project involves submergence of 201 villages, more than 7 500 families from 25 villages from their including part of Bagalkot town. According to the ancestral land and homes to make way for a reservoir commissioner Rehabilitation and Land Acquisition all with a storage capacity of 0.262 M acre-feet. The the 41 villages near Narayanapur dam and 65 in Almatti project got approval in Sept. 1976 from CWC with an had been shifted. Another 35 villages would be shifted initial cost of Rs 277.5 M. It was technically approved this year and the remaining as and when required. The in 1979 with a revised estimate of Rs. 558 M. Inter-state R&R work of phase II of UKP first stage had come in dispute between M.P, Bihar and U.P on submergence for severe criticism by the WB in the early 90s. The land was overlooked by CWC, finally sanctioning a WB, which approved a loan component for the revised estimated cost of Rs 694.7 M. Dept. of programme in 1989, had stopped it midway. The WB Environment of all three states were ignored completely funding concluded in 1997. (THE TIMES OF INDIA- and also no proper survey was made which concealed Bangalore 250402) and overlooked the real picture of the miserable and pathetic condition of tribals. The project is depriving Koyna dam: drinking water first priority The basic rights of affected villagers and tribals. Preliminary Maharashtra Energy Minister said that the first priority figures estimate 900,000 trees, 2500 kuccha and 200 in utilising water from the Koyna dam would be to meet pucca houses, 500 wells and about 30 govt. schools drinking water needs in the Satara and Sangli regions. along with some other buildings shall be doomed under Only then will the remaining water be used for water. People have demanded Resettlement policies on irrigation, while ensuring that the Koyna hydro project the lines of R&R in Sardar Sarovar Project. (From- is not adversely affected. (BUSINESS STANDARD Bhumi Haqdari Morcha Sonbhadra, UP, April 2002) 12/03/02)

SANDRP 12 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES NEWS FROM THE NARMADA VALLEY be entitled to a minimum of 2 Ha of agricultural land and that the responsibility of providing irrigation IPT demands Halt to the Maan Dam construction A three belongs to the state. This will have to be read along member tribunal consisting of former judge of Bombay with section 5.4 of the Rehabilitation policy that a grant High Court G G Loney, Human Rights advocate Vinod will be given to meet the difference between the Shetty and Delhi University Sociologist Dr Nandini compensation amount and the amount required for the Sundar; was appointed by the Indian People’s Tribunal purchase of equal land in a new place, and that for on Environment and Human Rights to investigate the members of Scheduled Castes and Tribes, this grant situation of the people affected due to the Maan will equal the full difference. Section 10.1 states those irrigation project, in view of the impending rehabilitation sites with minimum facilities of submergence in June 2002. The Maan dam is located at electricity, drinking water, school, etc. would be Jeerabad, in Dhar district in MP on the river Maan (a provided to the oustees. It may be noted that although tributary of the Narmada River). The maximum height submergence and filling of the reservoir is only two of the dam is 52.4 M and according to official months away, even rehabilitation sites for the majority estimates, it will submerge 17 villages. According to the of the affected people are yet to be developed. The govt. gazette notification of 29 December 2001, affected people insisted that the govt. must immediately submergence will be complete by June 2002. A public take cognizance of these issues and include all people hearing was held at village Khedi Balwari on 17th who are adults at the time of submergence on 30 June March, which was attended by about 600 people from 2002, as was done in the Bargi dam. (NBA PR 160402) all the affected villages. According to the findings the situation in the villages is in urgent need of redressal. LATEST: INDEFINITE FAST LAUNCHED BY The families of 17 villages are under immediate threat AFFECTED PEOPLE AND ACTIVISTS of losing their livelihood unless alternative land for cultivation and housing plots are urgently provided As we edit this issue, the indefinite fast by four before submergence. Submergence should be postponed activists have entered 27th day, demanding just R&R till the oustees are properly resettled and rehabilitated. of the Maan affected people as per Madhya Pradesh We find it shocking that the resettlement of oustees is R&R policy. It is ironic that Maan is one of the not an integral part of the construction of the dam and smallest of large dams being built in Narmada Valley that even after 17 years of construction; their situation and agitation is not against the project, but for has been ignored. We also find that the concerned govt. rehabilitation of some 5000 tribal people, and yet the officers are not addressing the genuine grievances of the state govt. is unable to achieve satisfactory R&R and people. We call upon the Govt. of MP to take people have had to resort to such extreme measures. immediate cognizance of the genuine grievances of the That too in a state where Digvijay Singh is Chief affected families in all the 17 villages and adhere to the Minister, proving more and more to be good CM only Rehabilitation policy of the MP govt. for the oustees of on paper as Arundhati Roy noted in her reply to the Narmada projects. Since it is not possible for the Govt. CM. to immediately complete the R&R before the monsoon of 2002, the dam construction should be halted urgently Financial Mismanagement in Sardar Sarovar According until such time as R&R is complete. (NBA PR 18/03/02, to a report of Comptroller and Auditor General of India, THE HINDU 26/03/02) the Sardar Sarovar Narmada Nigam Ltd. had incurred  Maan Affected Demand Just Resettlement The MP expenditure of Rs 109.786 B as of March 31, 2001, out Govt. has declared Rs 120 M new financial package for of which, Rs 24.14 B, or 22 %, was towards interest Maan Dam oustees. The oustees marched in Dhar charges and servicing debt liability. The CAG report demanding agricultural land rather than cash said: "the SSP was approved without outlining the compensation for rehabilitation and said that the sources of raising of funds and cost element towards package is inadequate. They demanded that the oustees borrowings. The company borrowed in an ad-hoc must be rehabilitated as a community on large chunks manner and cash flow was not worked out accurately... of fertile and irrigated agricultural land and provided There was no rationale for forming a separate company with all community facilities. The rehabilitation policy to execute the project." Due to huge outstanding of Rs for the oustees of the Narmada Projects that apply to the 5.0237 B as on March 31, 2001, from all the beneficiary people affected by the Maan Project stipulates that the states, SSNNL had to resort to borrowings from other oustee must regain if not improve on his/her standard of sources at 12 - 18 % interest. This has resulted in an living in the new site. Section 3.2 of the policy states avoidable loss of interest of Rs 12.098 B as of FY01 that all those losing more than 25 % of their lands will end. There remained an aggregate amount of Rs 13.813 B as of FY01 end with Gujarat Govt. Though this SANDRP 13 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES money was earmarked for SSNNL, the state govt. did bench could not arrive at common perception of the not permit SSNNL to use it. So, SSNNL had to borrow situation. funds to the extent of balance in PLA and had to pay a huge interest of Rs 2.208 B from 1988-89 to 2000-01. Displaced Tribals get no benefits from Tawa Tawa dam Due to non-reservation of right to redeem the bonds built on Narmada river in Hoshangabad district in MP through a call option, SSNNL would suffer an has displaced tribals from 44 villages but no benefit of avoidable loss of Rs 30.335 B by way of interest on the project has gone to them. Many of them stay within redemption of these bonds on their maturity. Against 1-6 km of the Tawa Canals. Tribals have now the anticipated revenue from sale of water and power of demanded benefits from the scheme and said they Rs 220 M per annum from 1995-96, no revenue was would agitate if this does not happen. (Sarvodaya Press generated till date. (THE TIMES OF INDIA-A 070402) Service 010302)

SSP affected on Dharna in Bhopal The people affected NSP gets Cabinet nod The cabinet on March 19 by Sardar Sarovar Project sat on a dharna at the NVDA accorded clearance to the controversial Indira Sagar headquarter in Bhopal. NBA issued an ultimatum to the power project in MP after almost two years of NVDA authorities saying that they should call for all construction having started. The project was earlier records. They alleged that the MP government had referred to CCEA, which twice refused to take a produced fake records to push the SSP dam height from decision and wanted the matter to be taken up by the 90 m to 95 m before the monsoon. NBA called off full cabinet. Even the full cabinet deferred the decision dharna after meeting with Chief Minister of Madhya at least twice before finally giving a clearance just in Pradesh and receiving an assurance that the demand time to save Rs 4.6 B allocated to the project from would be taken up for consideration by the Cabinet sub- getting lapsed. The project is to cost Rs 43.55 B and committee. The NBA alleged massive irregularities in expected to be completed by May 2005. the rehabilitation of villagers from the areas that would get submerged by SSP at the height of 90 m. The NBA HYDRO PROJECTS wants that a task force on the lines of Maharashtra Ministry Of Power’s Façade of R&R ‘Consultation’ On should be formed and entrusted with the job of May 14, 2002, Ministry of Power called a meeting on checking the actual status of the rehabilitation in the R&R in power sector that looked more like a meeting of villages. (THE HINDU-D 230402, 290402, THE TRIBUNE rehabilitation of power sector mandarins. SANDRP was 230402) invited for the meeting, but had to walk out from the SSP Costs The cost estimate of SSP stood at Rs 260 B meeting. The following letter to the Union Power two years ago, of which Rs 120.98 B has been spent till Minister written the next day and the attached note that Dec. 01. It has been the practice at SSNNL for some was given to Power Ministry officials are self time now to utilise the market borrowings for capital explanatory. Protests letters are understood to have been cost as a good portion of the budget allocation goes written by a number other organisations including towards repaying the market borrowings. Average Narmada Bachao Andolan, Manthan Adhyayan Kendra annual budgetary allocation for SSNNL is around Rs 9 and Matu. B. The latest private placement (with public sector banks, insurance companies, state coop banks and To: Shri Suresh Prabhu Union Minister for Power PSUs) has been underway and has so far collected Rs 3.5 B. (BUSINESS LINE 170402) Dear Sir, LATEST: SC ISSUES NOTICE ON DECISION TO This is to explain to you the circumstances under which RAISE SSP HEIGHT I walked out of the one meeting on “R & R in Power Projects” in protest yesterday at the end of Technical The Supreme Court of India has issued notices to Session One. I had informed Joint Secy Mr. Anil affected states, Narmada Control Authority and the Razdan that I am walking out in protest and had Union Govt. to explain what steps they have taken to requested him to circulate the attached note to the rehabilitate as per NWDT award and Supreme Court participants of the meeting including you. I am orders the people to be affected in SSP submergence attaching that note with this letter in case he has not area due to raising of height of the dam from 90 m to given you a copy so far. 95 m. This was in response to a fresh petition filed in NBA. The bench hearing the petition has referred the I had rather reluctantly agreed to come for the meeting. case to another vacation bench as the first two judge The reluctance was due to the fact that none of the

SANDRP 14 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES important people or organisations that have been doing Himanshu Thakkar some real work with and for the affected people since Brief Note on many years had not received invitation for the meeting Resettlement and Rehabilitation till 13th May 02 morning, till when I was in touch with in the context of Power Projects them. I have mentioned some of the names in the first For a One Day Meeting in New Delhi on May 14, 2002 point of the attached note. I myself received the Called by Ministry of Power invitation very belatedly, only on the 10th May, without any agenda, schedule, names of speakers or any 1. Firstly, I must thank Union Power Minister for material that would reflect the state of thinking in the calling me for this meeting. This was a pleasant ministry on the subject. After receiving opinions of a surprise, at first glance, it seemed. Then I checked with number of colleagues and most importantly, thinking the people and organisations working on these issues that may be the meeting would lead to some progress with affected people for very long time (e.g. Shri L C for the people affected by large dams, some of the most Jain, former member of Planning Commission, Medha condemned people of the country, I decided to go for Patkar of Narmada Bachao Andolan, Chittarupa Palit the meeting. I also thought that may be the ministry and Alok Agarwal, also of NBA, working with should be given a benefit of doubt and may be they had Maheshwar and Mann affected people, Shripad invited some affected people or their organisations that Dharmadhikary a senior activist of NBA also involved I have not contacted or I do not know of. How wrong in the process of World Commission on Dams, which that thinking was! has come out with the most remarkable of report of displacement and rehabilitation, Shekhar Singh of On seeing you, minister of state for power, power Indian Institute of Public Administration, involved in secretary, CEA chairman and joint secy on the pedestal these issues for years and also associated with Union in the first session, on hearing these dignitaries, one was Environment Ministry and Planning Commission for starkly disappointed. On seeing CMD NHPC, CMD many years and whose book on social impacts of large THDC, principle secretary MP and senior Sardar dams have just been published, Ashish Kothary of Sarovar official from Gujarat as scheduled speakers in Kalpavriksha, Girish Sant of Prayas, Vimal Bhai the first technical session on R&R for hydro projects involved with Tehri issues, Prashant Bhushan, a Senior chaired by CEA chairman (only other sessions in the Supreme Court advocate, Ravi Hemadri working with meeting were for thermal and transmission projects), I Bisalpur affected people in Rajsathan, to name just a started wondering if I have come to the right place or few of the important, well known people and was the meeting about R&R of CMDs and power organisations involved in these issues for a long time ministry mandarins? Not one affected person, not one and known to power ministry through our earlier affected people’s organisations and not one non correspondence) and I was shocked to learn that governmental organisation or person among scores of possibly none of them were invited. people working on these issues for decades, surely known to you and your ministry (if not otherwise The amiability thus was quickly replaced by suspicion known, at least through our correspondence a few as to what can be the purpose of a meeting where the weeks earlier) and you have not bothered to assure most important groups were missing. The first point I participation of any of these? About the content of what would like to make is that no such consultation can was spoken at the meeting, less said the better. be worthwhile if the affected people and the groups working with them are not part of the process. This kind of meeting on R&R would be unacceptable to any right thinking person. My continued participation 2. The second aberration that caught my eye was that may provide some legitimacy to a meeting when none invitation came at such a short notice and without any is due, I thought. I then informed Mr Razdan about this background note or papers. Now this is not even mildly decision and walked away. shocking because R&R is not a new subject we are confronted with. And unless we take stock of what we In the twenty first century, when you all do not tire of have achieved over the years, and try and learn lessons talking about participatory governance and sustainable from there, there is little hope from such consultations. development, this kind of event is difficult to imagine. Indian experience in displacing and NOT resettling its If you were really interested in doing something people is possibly most notorious in the world. To date, worthwhile on this issue, the attached note would though Govt of India has yet to come up with any study provide some directions, I hope. or figures of people displaced by large dams, here is what the Mid-Term Appraisal of India’s Ninth Five Thanking you for your attention and best wishes, Year Plan (Oct. 2000) said on the subject:

SANDRP 15 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES 4. Decision making process Without prejudice to what "Systematic irrigation development and construction of I have said thus far, let me come to the issue of R&R big dams in the country have caused land to be policy. The first important issue we would like to point submerged and led to large scale displacement of out is that the issue of social impacts including people from their original habitat. Almost half of the displacement, resettlement and rehabilitation should displaced persons are tribals who have least resources, form integral part of the planning and decision making, experience and temperament to negotiate their lives which unfortunately, is not the case. The Planning after displacement. Due to the submergence the project Commission Document (Oct. 2000) mentioned above affected persons (PAPs) face numerous problems… said on this issue: “The process of decision making on There are no reliable statistics with break-up of social these projects also needs to be made more open so that and economic classification of the people displaced by the public at large, and in particular, those directly each of large projects since independence. Many affected can have access to more information about the researchers place their estimates at between 10 million assumptions and calculations on which the project is and 25 million. The implementation of R&R judged by the authorities to be technically and programmes for the Project Affected Families (PAF) economically viable. This will help the people satisfy has thrown up the following important issues, which themselves that sufficient safeguards have been built need consideration. into the project to take reasonable care of those who are i)Prior Consultation and information to Project Affected affected by the projects and also of the potential adverse Persons ecological consequences flowing from the construction ii) Need for National Rehabilitation Policy of the project and its operation. The people will also get iii) Provision for land from Command area to those an opportunity to place their objections and concerns who bore land in the catchment area before the concerned authorities along with concrete iv) Availability of basic infrastructural facilities like suggestions for alternative, cheaper/safer ways of health, education etc at relocation sites. achieving objectives which the project is supposed to v) Policies to take into account specific problems of serve”. most vulnerable sections of the displaced including tribals." To remind, this is a quote from Govt. of India’s Planning Commission. “ The Central Government is in the process of formulating new national R&R policy. The draft NRR And it implies that BEFORE a decision is taken to go 1998 was prepared and widely debated by the ahead with the project, people, including affected Government. The R&R policy will seek to minimise the people, should get an opportunity to look at the project trauma of displacement on account of compulsory documents to not only look at social and environmental acquisition of land, and establish statutory minimum aspects, but also the technical and economic viability standards for packages and benefits to ensure that aspects, so that people can make, to repeat part of the displaced persons are better off as a result of the quote, “concrete suggestions for alternative, project". cheaper/safer ways of achieving objectives which the project is supposed to serve.” A clear admission, thus that Govt., over 54 years after independence and after pauperising millions have Here a process related issue is that this process cannot neither any record of displacement or rehabilitation nor be entrusted with the project implementing authority or any policy on resettlement or rehabilitation. ministry and there should be an independent authority that would certify that the project has gone through this 3. From generality to specifics Even today, the people process. In case of power projects, we can either have affected by Bhakra, Damodar and Hirakud projects are an independent authority for this or the electricity yet to be fully resettled, even by the admission of local regulatory commissions can be entrusted with this task. governments, not just independent reports. Not a month goes by without Himachal Pradesh CM making some 5. Appraisal Problems One major issue we would like announcement about the pending resettlement of those to flag is that of serious inadequacy in basic appraisal of affected by Bhakra and Pong dam oustees. social and environmental impacts of power projects. To give you a few examples, in Chamera I Project The point we would like to draw from this is that unless implemented by NHPC, an organisation under Power we know what we have done in the past, there is little Ministry, the people had to actually flee when reservoir one can hope from such meetings. was getting filled, as per a field study done by SANDRP. In case of Bargi Project in Narmada Valley

SANDRP 16 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES in Madhya Pradesh, which is essentially working as new independent body to assure that this process is hydro project now, the projected submergence was for properly followed. 101 villages, but when reservoir was filled up, it submerged 162 villages, including some of what the 7. Land for Land Policy About the actual measures of authorities chose to call resettlement sites. In case of the R&R, the most important issue we would like to high proposed Teesta Low Dams III and IV projects in North light is that every affected family must be given a Bengal being undertaken by NHPC, the affected people choice of getting minimum Two Ha of irrigated land were not even informed the purpose of the socio- with every major daughter or son on the date of section economic survey being conducted for the project. 4 notice being considered separate family. If any affected family chooses not to take land and go for any If the projects undertaken by Power Ministry are not to alternative R&R measure, that option can be exercised become engines of pauperisation of most marginalized by such failies at a later date, but the authorities in the sections of population, then the projects must have full, first place must offer land as mentioned above. No proper, open, transparent and accountable appraisal. If excuses in this respect should be entertained. an engineer who says 101 villages will be affected and the project submerges 162 villages and yet the engineer, Even Govt. of India has agreed in affidavit after planner, bureaucrat, politician or any other decision affidavit in the Supreme Court that Land based maker gets away without being answerable, then we resettlement is the only just and proper way of resettling cannot continue to believe that we are living in a affected people. civilised society. One major excuse put forward in this respect is that One major issue we would like to flag here is that all there is no land available for resettlement. Past kinds of people who get affected by the project, whether experience has shown that when there is political will, in the upstream, in the submergence zone, in the the authorities have been able to provide land. To give a downstream, or in the command or benefit areas, must famous example, in case of Sardar Sarovar Project, be part of project appraisal and definition of project Govt. was not interested in giving land for resettlement, affected. but it was forced under various circumstances, to agree to give 2 Ha of irrigated land to each affected family, 6. First Principle of R&R Policy Having seen that the including those landless in the affected villages. There story of displacement, resettlement and rehabilitation too, the authorities had raised the bogey of availability shows utter failure of authorities to achieve any of land, which they continue to raise even till date, semblance of resettlement, leave aside the question of showing utter lack of minimum goodwill towards rehabilitation, then the first principle of any R&R affected people. However, till date, the govt. has policy should be avoidance, minimisation, prior allocated over 16000 Ha of land to affected people. This resettlement. That is, first attempt must be to look for is not to say that proper R&R is happening in case of projects that avoids any displacement, and such options SSP. The point to note is that the authorities that were do exist, if we were to go even by the statements of saying there is no land have been forced to find so much India’s Power Minister Shri Suresh Prabhu. land for affected people. When avoiding displacement is not possible, then the To give a more forceful argument, just four days back, option chosen must have minimum social impacts. And on May 10, at a meeting on National Water Policy, it should be shown that indeed the option selected is a Member Planning Commission (Water Resources) and least cost option, in a publicly demonstrable way. former Minister for Water Resources and Agriculture, Accompanied by such choice should be a Shri Som Pal, nailing the bogey of no land available, demonstration, again in a public way that full said that as per Planning Commission figures, 77 M Ha arrangements for resettlement of the affected population of land is available that can be put to use either for is in place, including land availability. And this should agriculture or for forestry. No excuse about no land be shown before taking up the project. No investment or availability can be entertained after getting this from any other clearance should be given to the project India’s current Planning Commission. before this is shown to be the case. 8. Social Rehabilitation One major issue about the The process of showing that this is indeed the case R&R measures we would like to draw here is that of cannot be left to the project-implementing agency. In social rehabilitation. The affected villages must get a the earlier case I had suggested that possibly ERC can choice of getting resettled as a village unit. It is another be involved, but since ERC or CEA does not have matter if some members of the village choose not to capabilities in social issues, we would probably need a SANDRP 17 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES exercise that option. But the authorities must be people. The God, in this case, is not in detail, as some obligated to give that choice to affected people. would say, but possibly in compliance, the weakest point of our God fearing society. The existence of 9. Institutional Issues Besides some of the institutional yawning gap between our words and deeds cannot issues flagged earlier, here I would like to briefly flag inspire any confidence. two issues. First is the issue of Monitoring. The project implementing authorities cannot be entrusted with the South Asia Network On Dams, Rivers and People task of certifying that R&R is actually happening as per May 2002 the policies, provisions and plans. There should be an independent, credible agency appointed for each project Does the Power Ministry understand Environmental to firstly monitor and periodically provide public issues? A half page response feature (THE TIMES OF reports about the state of R&R. Secondly, there should INDIA 180402) by Union Minister of State for Power be a committee which would certify about the progress raises questions if the Power Ministry really of R&R and based on that, approve construction of the understands social and environment issues associated project at each stage. That committee must have with Hydropower projects. Here is a sample of some representatives from affected people, NGOs and such misleading and some patently wrong statements: other credible persons.  Information for land required for the project is not given, but only land under submergence is given. This 10. Confidence Building Measures Indian policy gives a misleading picture as in case of Uri project, makers’ credibility, unfortunately, is very low as far as while 235 Ha of land was required, extent of R&R is concerned. If the claim that proper R&R is submergence given is nil. possible is shown to have any credibility, the authorities  There is column in the first table with heading will first have to show that such is indeed the case. And “Plants affected (number)”. How the authorities could this can obviously not be at the expense of additional have counted the number of affected plants beats displacement. Any confidence inspiring case must come imagination. from resettlement and rehabilitation of people affected  The feature claims, “Hydroprojects do not cause by projects in the past. Until it is seen and shown that any substantial soil erosion”, which clearly shows that people displaced in the past are indeed properly the author does not understand what all activities are resettled, there cannot be any case for fresh involved in hydropower projects. Would be well displacement and until then people will have no advised to read Large Dams in India: Environmental confidence in authorities’ claims that R&R is possible. and social impacts by Shekhar Singh and Pranab Bannerji of Indian Institute of Public Administration. 11. Just and Sustainable Development Dam builders, The statement in the feature “Activities like including govts and other authorities are in the habit of construction/ widening of roads, construction of project calling all those who raise some basic questions on components etc. may further aggravate deforestation” social justifiability and viability of development contradicts the first statement, and goes to show how projects as anti developmental. We hope our Power little the author understands environmental impacts. Minister would not fall in that trap. For, causing This second statement quoted here also contradicts displacement is not the only way of achieving another statement coming later on, “The direct impact development. Moreover, it is nobody’s case that no of run-of-the-river project on flora and fauna is limited development is necessary. However, as we move to the vicinity of the project”. towards Johannesburg and Rio + 10, we can not loose  From the second table of the feature, it is clear that consciousness that any project that in stead of reducing project authorities are not treating full catchment area of poverty, generates more poor people, can neither be the project, required for its sustained existence. They called just, nor sustainable and never a developmental not even treating full free draining catchment areas, project. only a small portion of it. In case of Rangit project, about 16% of freely draining catchment is even claimed 12. Next Steps Full appraisal and addressing of past to be “under treatment” when the project has been social impacts, putting together a transparent options commissioned years ago. No wonder the projects silt up assessment process, legally enforceable R&R policies, so fast. institutional mechanisms mentioned above and holding  On R&R, the feature makes most far-fetched and all displacement related projects on hold till than are unbelievable claims, “Rehabilitation of Project Affected some of the basic next steps that one can think that the Persons receives the due importance in NHPC right Power Ministry can take up, in consultation with the from the stage of planning… The displaced people are people mentioned in first point above and all such other resettled, much in advance of the project

SANDRP 18 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES commissioning.” Nothing can be farther from truth. In serious geological and other impacts for the region. case of Chamera I project in Himachal Pradesh, people This only goes to show NHPC has little respect for had to flee when the reservoir was getting filled as per basic norms. SANDRP survey. 3. The work described in point 2 above is happening in Teesta Hydel project raises concerns The residents of reserved forest area and also entails creation of roads, Kalijhora, Gielle, the Environmentalists of north Bengal lighting and related work. This has already meant and others are irked at the construction of the Teesta felling off a number of trees for which NHPC has no ‘low’ dam projects III and IV, to be built by the NHPC, permission. across the glacier-fed Teesta river. Under the project, a total of 184 Ha of forest land including the famous 4. The project is going to submerge part of NH 31A and picnic spot of Kalijhora will get submerged. Besides, the alternative path that have been marked out, we were 2.5 km of NH 31A will have to be realigned. The Chief told, goes through reserved forest possibly under coordinator of Kalijhora Janakalyan Manch said, “The Mahananda Sanctuary. As per the Supreme Court order, survey report prepared by the North Bengal University no authority has permission to divert any land under is not done properly as the main residents of the area any sanctuary or national parks. Hence, the project were not interviewed. The PWD and the NHPC are would be violating the Supreme Court orders and unless playing the game to remove us from here.” According there is specific permission for this, the project cannot to the Indian Meteorological Department, the area falls go ahead and all related expenses would be a waste. under seismic zone level IV. The continued 5. Teesta Valley has the highest incidence of landslides accumulation of silt and gravel will erode the hillsides in the country. The project area is known to have high flanking the Teesta. Due to underground water seepage density of known land slips. There is also the issue of and the rise in water level, Kalijhora village might get one of the highest siltation rates in Teesta river. Under submerged and their livelihood and habitat destroyed. the circumstances, geological and sediment related (THE TIMES OF INDIA-K 170402) feasibility of the project is under doubt. Sub: Representation RE Teesta Low Dams III and IV Under Section 29 of Elec Supply Act Notification 6. Moreover the projects of this nature would also have serious impacts in upstream regions when large amount A number of organisations including Himalay of water is permanently stored. These impacts do not Paryavaran, SEED, NESPON, Teesta Bachao Andolan seem to have been taken into account while taking up and SANDRP sent representations to NHPC in response the project and unless this is done, the project would to notice of NHPC under section 29 of Electricity bring unforeseen serious adverse impacts. Supply Act (1948), objecting to the proposed Teesta Low Dam projects near Siliguri in northern W Bengal. 7. Teesta valley, like the rest of the Himalayan region, Some of the important points in the representations is highly seismically active area and the project would include the following. not only pose a threat in case of an earthquake, it would also accelerate the occurrence of earthquakes. 1. First point is procedural. NHPC is a project implementing agency and it has already shown to have 8. The project and the intermittenent nature of flow of vested interest in pushing the project. Thus it cannot be water in the downstream region that it would induce entrusted with the task of responding to the would have serious downstream impacts. These will be representations like this one and an independent agency of many kinds. Geomorphologic impacts would be one should be asked to look into and respond in detail to the of them. Coronation Bridge, just 400 mts downstream representations received objecting to the project. of stage IV dam, would be endangered, for example, Accordingly, we are copying this also to Chairman besides many other impacts in the fragile geology of the CEA and Chairman CERC. region. 2. NHPC has been going ahead with some serious 9. There are many serious problems with the way nature of work at the project sites. This is happening, environmental impact assessment of the project seems for example at Kalijhora township and upstream of the to be getting done. The local people of course have no Coronation bridge in case of Stage IV dam. The Chief role in this and they are not even informed about the Eng of the project accepted that a tunnel, 2.2 mts in project, leave aside taking their free prior and informed diameter and 300 mts depth is being done, though he consent about the project. Even while taking up socio called this to be testing work. Work of such scale economic assessment, the local people were not cannot be called testing and would have irreversible and informed about what this is being done for. Any EIA

SANDRP 19 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES done in this manner and any project taken up in this go up to Rs. 4.97 per unit. This does not include the way can have no place in any democratic society and investments necessary for related T&D works. Under the project in any case violates fundamental rights of the circumstances, this is very high priced power. As the local people. we all know, the main problem with the ongoing controversy in Dabhol power project, where the station 10. The Teesta Stage IV project is to submerge the is ready to produce power, is that the power cost is picnic spot and eco tourism developed by the local considered too high even at Rs. 3 per unit at present people with their resources. Livelihood of almost all the cost. It is difficult to imagine who would be able to pay people of Kalijhora township depends on this. And the for the power produced by the proposed projects. In any project authorities, even after repeated questioning, case, this does not seem to be least cost option. have no response as to how the local people will be compensated. On the contrary, as local people told us, 15. Many dams have come up and more are under there is constant attempt to threaten and otherwise take construction and planned on Teesta valley and its away their existing habitations in various ways. The tributaries. There is no attempt to see the cumulative socio economic impacts of the projects would be impact of the project on the society, on ecology, serious and there is no attempt to bring into project geology, hydrology, downstream areas and in holistic parameters. The project authorities do not have any way. Unless this is done, and projects are still proved to R&R policy or plan, least of all credible record or be useful, the proposed projects should not go ahead. mechanism to make this possible. Looking at all the above points, we clearly see that the 11. The projects are supposed to provide peaking project should not ahead in the present form unless all energy as per the presentation made by the Chief Eng the points raised above are addressed in a manner NHPC at a meeting in Siliguri on 210402. However the satisfactory to everyone concerned, local people most proposed projects have no storage capacity and for a importantly. project to provide peaking energy, off peak time water storage facility is required. Alternatively the project NHPC to exit from Koel Karo authorities can choose to shut off the stations during off peak hours, but in that case the project cannot achieve electricity production equivalent to 52% Plant load factor as claimed in the notification of 150302. Hence the notification is clearly giving wrong, misleading information. 12. Moreover, in the notification or otherwise, hydrology of the river at project site is not given or The NHPC has confirmed its desire to exit the project, available to people. As you know, feasibility of the “We have asked the Power Ministry to either help us project cannot be ascertained without knowing the get clearance from the state govt. and the Centre or give hydrology of the river at the dam site. Under the us permission to wind up the project.” The project was circumstances, people are asked to trust the project handed over to the NHPC in 1981. Today the estimated authorities as far as feasibility of the project is cost per unit of power is expected to be between Rs 6 concerned. Past experience of NHPC shows that such and Rs 7. NHPC’s inability to resolve the issue of trust would be misplaced and in any case such huge rehabilitation of around 100 000 people to be displaced amount of public money cannot be invested under trust by the project has been one of the main problems. (THE in a few unaccountable engineers. INDIAN EXPRESS-D 010402) 13. Hydrological feasibility of the project also comes AASU-NHPC controversy The kidnapping of an into doubt as till recently, the installed capacity of stage engineer of NHPC Gerukamukh created a IV project was said to be 168 MW, which has suddenly misunderstanding between the All Assam Students' been envisaged to be 200 MW now. Union and the project officials. AASU called one-day bundh after lodging of false complaint by NHPC and 14. The project cost (which has always proved to an arrest of their Gerukamukh branch president by the underestimate as per past experience of such projects) local police. Dramatically police released AASU leader as given in the Section 29 notification, at Rs. 2.98 per after release of the abducted engineer by unknown unit of electricity produced at bus bar is at Sept. 2001 kidnapper. The controversy started when the NHPC has prices, we assume. When T&D losses prevailing as it launched 2000 MW Subasiri HEP project. The AASU does in W Bengal at 40% are included, the cost would SANDRP 20 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES leaders expressed their resentment stating that the local people are deprived of employment in the Rs 100 B Japanese funding to Hydro projects in India Japan project. (SENTINEL 020402) continues to remain the largest among the bilateral donors funding hydropower and dam projects in India. Nathpa Jhakri Financial Bungling The CAG has taken a Among the projects currently funded by Japan’s ODA serious note of the Himachal Pradesh Govt. retaining include the Paithan HEP in Maharashtra, Purulia Pump with itself loans of Rs 12.577 B raised during 1999- Storage Project in W Bengal, Umiam HEP in 2001 for payment of equity in the Nathpa Jhakri Power Meghalaya, Tuirial HEP in Mizoram, Srisailam left Corporation. The govt. raised loans of Rs 7.57 B Bank HEP in Andhra Pradesh and Tamil Nadu State through the HPRIDC during 1999-2001 by Micro Hydro Power Stations Construction Project. In securitisation of the receipts of free power from NJPC addition, Japan also funds India Gandhi Canal Area for about five years from the date of commissioning of (afforestation and Pasture development), Rajghat Canal the project. The amount was deposited in the govt. Irrigation Project in MP, Rengali irrigation project in account and no equity payment of these loans had been Orissa in irrigation sector and several others (e.g. made to the NJPC up to March 2001. The annual return Kerala Water Supply Project, Bangalore Water Supply of Rs 3.5 B from free power sale from the NJPC had Project, Yamuna Action Plan) in water sector. (THE already been considered sufficient by the govt. to HINDUSTAN TIMES 290402) liquidate SLR - borrowings of Rs 8.99 B made by the state govt. earlier through the HPSEB during 1994- Sutlej Upper Valley Power Corp. HP CM announced that 2000. Securitisation of the same receipts of free power the Sutlej Upper Valley Power Corp. in the joint sector for raising loans through HPRIDC was thus, not with NJPC and other central orgs will be set up. The justified. 400 MW Rampur HEP, 225 MW Karchham-Shongton  Corruption Fresh cases of corruption has been and 400 MW Thpan-Pouwari HEPs could be executed reported in this project. The Jai Prakash construction by the Corp. (TRIBUNE 080302) got an ad hoc payment of Rs 420 M as advance against Larzi Coffer dam breached Sudden rise in the level of the admissible claims of Rs 0.451 M. The vigilance Beas river has led to breach in Larzi coffer dam. dept. has pointed out irregularities in a payment of Rs (TRIBUNE 270402) 28 M to Continental Foundation. (THE TRIBUNE 290302, THE HINDU 140402) CEA Green Signal for Almatti Project The Central Electricity Authority has given its techno-economic Srisailam Project unviable: CAG The Comptroller and clearance for the 290 MW HEP in Karnataka. In line Auditor General of India in its latest report has said that with the Supreme Court order, the CEA had approved the Srisailam project has become unviable on account the Rs 6.74 B project, to be developed by the KPCL, on of a huge escalation in the cost of the project. The the condition that no physical capacity would be created 6x150 MW Srisailam HEP was sanctioned in 1986 but to store water above the 519.6 m level at Almatti Dam. the real work started from 1996 after the JBIC had Karnataka had proposed to raise the water reservoir approved direct payments to the equipment suppliers, level to 524.2 m from 509 m for increasing power and sanctioned the required loan. As against Rs 11.666 generation, which was opposed by Andhra Pradesh. The B sanctioned by the Planning Commission in 1991, the Supreme Court settled the issue in April 2000 by project cost has now escalated to Rs 34.32 B including restricting the water reservoir level to 519.6 m and by IDC of Rs. 9.5 B. The project cost has worked out to be rd imposing a cap on total water utilization by Karnataka Rs 38.1 M per MW. The 3 unit of the project was at 173 trillion cubic m per annum. (BUSINESS commissioned on April 21. (BUSINESS LINE-D 220402, STANDARD-D 06/03/02) 240402) NorthEast Projects Union Power Minister assured Excess Hydro Capacity in Karnataka Karnataka has Mizoram that the 80 MW Bairabi HEP would be taken installed hydro power capacity of 3000 MW, whereas up in the coming Power Minister’s conference and said the thermal capacity is about 2000 MW, thus the state that he would personally ensure that the project is has adverse hydro-thermal mix. (Other states can use implemented. “The project would be made a this to create better hydro thermal mix?) multipurpose project involving different union  Malfunctioning at Sheravathi Tail Race Project As ministries like Water Resources, Rural Development the gate of the dam did not shut in time at the World and Inland Waterways,” he said. He also said that all Bank funded 180 MW Gurusoppa HEP, water (which efforts have been made to begin the works of 210-MW could have yielded electricity worth Rs 1.7 M) leaked Tuivai Hydel project in the State. He dedicated to the away. (BUSINESS LINE 020302, THE HINDU 270402)

SANDRP 21 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES nation the 75 MW Rs 8 B Doyang HEP built by Central issued to confiscate company’s movable properties. The sector NEEPCO in Nagaland’s Wokha district. NBA demonstrated that while the power from the MHP  CEA approves Mizoram HEP The CEA has is prohibitively expensive, over 60,000 people would accorded techno-economic clearance to the Bairabi stand to lose their lands, homes and livelihoods because HEP. Located on the Bairabi River a 62 M high and 180 of the project whose rehabilitation is well nigh M long earth fill dam would be built to generate 210 impossible. The departure of five US and German MU of electricity annually. The dam would, it is power utilities from this Project and the refusal of the claimed, will provide a 180-km waterway for German and Portuguese govts to stand guarantees have transportation of goods from the capital Aizwal to also demonstrated that the Project is socially, Silchar. The project is likely to be developed in 7 years technically and financially unviable. (THE HINDU-D and is estimated to cost Rs 5.226 B. The proposed 30/03/02 & 07/04/02, BUSINESS STANDARD-D 2/04/02 & reservoir would submerge 6 villages with a total NBA PR 05/04/02) population of 6 500. (ASSAM TRIBUNE 030302, 040302 SENTINEL 030302 PIB PR 120302) Time and Cost over runs in J&K HEPs The Minister for Power said that an MoU has been signed between the Kerala signs pact for rubber dams The Steel Industrials State Govt. and the Union Ministry of Power under Ltd. of Kerala has signed an agreement with which 7 HEP have been handed over to the NHPC for Hydroconstruct of Austria for construction of rubber execution. The Minister said for completion of Upper dams in the country. The SILK sources said that rubber Sindh Hydel Project-II, Sewa-III and Chenani-III loan dams as old as 25-30 years are in operation in many assistance has been arranged from PFC while as REC is countries such as US, Canada, Japan, Australia, Austria, providing loan for execution of Haftal, Sanjak, Indonesia, China and the Philippines. They are ideal for Marpachoo, Pahalgam and Bhaderwah projects. He said total water resource management such as irrigation, the Sawalkot Hydel Project has been contracted to NCC groundwater recharging, flood-control and hydropower led consortium of Norway. 450 MW Baglihar project generation. According to preliminary studies, rubber will be commissioned by 2004. dams would find wide application in rivers such as  Dulhasti According to the Standing Committee’s Bharathaouza, Periyar and Pampa in Kerala. The total 23rd report, the cost of Dulhasti, which has been cost of rubber dams will be lower than that of delayed by four years, increased from Rs 12.629 B to conventional concrete dams. The rubber dams can be Rs 35.598 B. The report recommended that shifted around provided the site parameters are similar. responsibility should be fixed for huge time and cost They can also be used in catchment areas for generation over-runs. (DAILY EXCELSIOR 080302, 180302) of power. (BUSINESS LINE-D 040302) Ranganadi HEP commissioned The NEEPCO with Conditional approval Rs 3.30 B bonds for Maheshwar assistance from the NE Council has commissioned all The Madhya Pradesh Cabinet has given its approval in the 3 units of 135 MW each of the 405 MW Ranganadi principle for giving a standby guarantee for Rs 3.30 B HEP in Arunachal Pradesh, the largest HEP convertible bonds being issued by the Maheshwar commissioned in the North East. With this, NEEPCO Hydel Power Corporation. For securing the guarantee, has achieved its capacity addition target of 654 MW the company will have to ascertain all financial during the 9th plan period and raised its installed arrangements and complete necessary formalities within capacity to 1105 MW. The project comprises of a 68 m six months from the date of letter of intent. It will have high concrete dam and a water conductor system of to renegotiate with the loan providers about the rate of length 10.78 km passing through a difficult geological interest and make it at par with the current market rate. terrain. The diversion dam is located at Yazali on River The company will have to devise measures to lower the Ranganadi and the powerhouse is located 29 kms away project cost and maximum possible limit of interest at Hoz on the bank of river Dikrong. Annual envisaged during the period of construction. “Though the govt. energy generation is 1876 Gwh (i.e. 52.8% PLF is on will make amendment in PPA, there is no written very high side). (PIB PR 280302) agreement on reducing the power tariff which is expected to touch Rs 5.06 per unit on the completion of Public hearing on Athirappilly Some of the important project in 2005-06,” Official said. observations and recommendations of the Kerala State  The NBA has demanded that the project be Pollution Board Panel on the Public Hearing of the scrapped, all public money withdrawn, and punitive Proposed Athirappilly HEP conducted on Feb. 6, 2002: action taken against all officials. The NBA questioned  The public contended that the EIA was not the State Govt.’s stand saying that the decision to conducted properly and entirely. Some of the extend guarantee came at a time when orders had been studies were conducted during rainy season only

SANDRP 22 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES and round the year study was not conducted. The of the controversial Athirapally HEP in central Kerala project proponent did not cover many aspects has suggested a Niagara and Victoria model of project, primarily required for EIA. which combines power generation with tourism. At the  The matters related to deforestation, socio- famous falls on the US-Canada border, water is stopped economic aspects and impact on downstream sites during the night for power generation and allowed to were not dealt with in the EIA in detail. cascade down during the day. However, it is indeed  The “Rapid EIA” done by the project proponent is very strange to see that an academic body, who was incomplete, inadequate and a comprehensive EIA is entrusted the task of doing an EIA for the project, is necessary for actual assessment of the environment now seen to be publicly advocating that very project, impacts. thus proving that the body has abdicated the  The concept by the KSEB that ‘the downstream responsibility of a responsible EIA agency, raising area will get a constant flow due to power many questions on the EIA study. (THE TIMES OF generation’ is against facts and baseless. The INDIA 310302) quantity of the constant flow throughout 24 hours is not specified in the EIA. The water budgeting Iruppu HEP in Karnataka rejected The forest dept has aspects with respect to irrigation, water supply and rejected the Environment study report of the proposed salinity intrusion is not considered. The aquatic Iruppu HEP in Brahmagiri Wildlife Sanctuary of organisms will be seriously affected and damaged Kodagu district. The Deputy Conservator of Forests of due to the significant changes in the flow pattern Kodagu has drawn attention to many mistakes and especially during night time. contradictions in the report done by Institute of  There is no adequate water for power generation. Catchment studies and Environment Management. As The present water scarcity in the downstream side the project region comes within the limits of Wildlife of Chalakudy River will be aggravated and the sanctuary, it is not possible to give permission for the irrigation and water supply schemes will be affected project; the Chief Wildlife Warden has clarified. adversely. There will be salt-water intrusion. (KANNADA PRABHA-B 110302)  The EIA is silent about the impact in the river SOUTH ASIA system during summer season. The storage of water in pits and rock pools is not sufficient to maintain Pakistan: Tarbela-affected still await resettlement the life in the river and the non-availability of water According to a report, many of the people affected by will completely damage most of the aquatic Tarbela dam are still not resettled after 26 years. These organisms. people allegedly refused to settle in Sindh when the  The KSEB admitted that the costs due to social and govt. was forced to offer them land there under a WB environmental impacts were not accounted while condition for the release of $ 2.5 B for Ghazi Barotha fixing the cost of electricity. Power Project. The Social Organisation for Mutaasirin-  The absence of Athirappilly waterfalls and i-Tarbela claimed that in 1996, a WB team held Vazhachal rapids after 6 pm will affect the life in meetings with the affected people of Tarbela, collected the river stretch up to the Kannankuzhy and this is copies of the claims and found out that more than 3 000 not acceptable as the natural system of waterfalls is claims had not been entertained. An Independent completely lost for 12 hours besides the ecological Tarbela Commission was then constituted. ITC received impact due to absence of water that is essential for 11 000 applications, out of which 5 000 claims were for the existence of the aquatic life. residential plots and 6 000 for agriculture land.  The panel observed that the impact on the tribes at However, the applications were unilaterally processed Vazhachal (60 families) should have been and out of 6 000 of them, only 1 954 were declared considered and there should have been genuine. The deputy secretary West Pakistan had issued rehabilitation plans. orders for the allocation of 40 000 Ha of land in Sindh and Punjab for resettlement of the displaced people. So 145 representations were received in response to the far, only 12 000 Ha has been allocated, which means public notice on the public hearing. During the public that 70 % of the cases are still outstanding. (SUNGI hearing 117 representations were received. The entire Development Foundation-Pak 21/03/02) project affected people who attended the public hearing opposed the implementation of the project. (PR Pakistan to pay Impregilio for Ghazi Barotha Pakistan "Chalakudy River" 260302) has agreed to pay $ 45 M to the Impregilio lead  Niagara-like project for Athirapally suggested In a consortium constructing the $ 2.5 B Ghazi Barotha questionable move, the environment impact study HEP. The payment is required by the consortium to agency Tropical Botanic Garden and Research Institute resume construction of the project. The contractor SANDRP 23 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES submitted claims worth $ 70 M after the suspension of Sri Lanka to commence Upper Kotmale HEP The Japan work following the 11 Sept. attacks. The project is funded 150 MW project to be completed in five years already behind schedule by 2 years. (DAILY will cost $ 336 M. Power Minister assured the local EXCELSIOR 040402) residents affected by the project would be given housing and job opportunities. (Xinhua News Agency Opposition to Thal Canal project in Pakistan The Chief 260402) Executive Secretariat decided to review the controversial Greater Thal Canal Project, increase water Nepal: Arun HEP The water resources and energy supply to Sindh to facilitate sowing of Kharif crops, and secretaries from Bangladesh, Bhutan, India and Nepal, approach the Supreme Court over the interpretation of have agreed to develop the Arun Valley HEPs. Clause 14-B of the Water Accord, 1991. As a According to the plan, Arun River cascading down the consequence of the decisions, the construction of Thal eastern hills of the Nepal will have 1 100 MW capacity Flood Canal, which had been started by WAPDA even — with the Arun III to have 401 MW, Upper Arun 350 before ECNEC could have accorded approval to it, MW and Lower Arun 355 MW— that would feed a would be stopped. The meeting agreed on preparing a sub-regional grid interconnecting the national systems fresh PC-1 of the Thal Flood Water Canal, and restored of the four neighbours. The ADB has agreed to analyse its earlier nomenclature 'Greater Thal Canal'. Under the the detailed financial, technical and implementation 1991 Water Accord, no irrigation project could be aspects of the projects, and provide technical assistance undertaken by the federal government or any provincial for the studies. However experts say that the project government without prior certification of the Indus may not move ahead in the light of the country’s River System Authority (IRSA) about the availability of worsening security situation. The feasibility studies of water. Arun III had been finished in 1993. But the then Govt.  Sindhi Activists from different part of UK gathered was forced to abort it after the WB, which had on 23 March in front of Pak High Commission in supported it for 10 years, decided to pull out in 1995. London expressed their opposition to the construction There are experts who say, "Nepal will not have any of Greater Thal Canal Project. problem so long as the development cost is at par with  PNRDP Resolution The participants of the the international price—that is less than $ 1,200 a KW." political dialogue on "Greater Thal Flood Canal" (KATHMANDU POST 120302) scheme under the auspices of Pakistan Network Of Rivers, Dams and People, unanimously rejected the Reliance, Sahara interested in Nepal Hydro? Reliance decision of ECNEC & CDWP of approving the project. and Sahara Groups have separately shown interest in They also termed this decision as detrimental to the setting up HEPs in Nepal. Reliance had earlier shown national interest as well as social, political and interest in 300 MW upper Karnali HEP. It was environmental interests of lower riparian. They ultimately allotted to Elysee Frontiere, a Singapore demanded immediate release of water from Mangla for based French company. That allocation now stands the Kharif crops of Sindh. (Sindh Water Committee PR cancelled and the project is available for allocation to 210302 DAWN 190302 PNDRP PR 160302) any company. However, the Nepalese officials are hopeful that Reliance would take up much more Opposition to CRBCP in Pakistan The govt has allocated ambitious, 10 800 MW Karnali Chisapani project, in Rs 3.1 billion for Chashma Right Bank Canal project, which the infamous Enron group had earlier shown which will now, to be completed in 2004. The Chashma interest. (THE ECONOMIC TIMES 230302) irrigation was an ongoing project, which envisaged construction of 170-mile long canal taking off from the Expensive Melamchi water The $ 468 M Melamchi Right Bank of Chashma Barrage at River Indus and Drinking Water Project in Nepal would supply water 700-mile long distributaries and minors. The project from 2007. The executive director of Environment and was being implemented in three stages. Besides other Public Health Organisation said, "On completion of the reasons the project could not take off due to differences Melamchi project, 10,000 litres of water will cost Rs. between Punjab and the NWFP. 440, which is available at Rs. 40 these days." Five  After ADB’s inability to solve the problems due to NGOs, including ENPHO, have formed a consortium to CRBC, the affected people and Sungi Foundation has study the availability, price and quality of drinking sent a petition to the ADB inspection panel that the water in the Valley. According to their calculations, the project violates fundamental policies of ADB. (Dawn water will cost Rs. 30 per 1,000 litres per month for 190402, PNDRP) first 6,000 litres and Rs. 65 up to 15,000 litres and Rs. 85 for over 15,000 litres of water. They alleged that the Govt. did not ask for any suggestions from the locals

SANDRP 24 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES before bringing in such an extravagant scheme for less objected to what they say is a potential reduction of the than a million people living in the Valley. The local water flow in the River Tigris. (BBC News 270202) govts. like municipalities were not involved in the decision. According to the new provision, all the AMEC pulls out of Yusufeli Dam in Turkey Just before connections, including the public tap stands will have the launch of a major campaign against AMEC's meters. Homes and business houses with deep tube participation in the controversial Yusufeli Dam in wells will need to have a licence and make payments Turkey, the company has announced its withdrawal. for the water they extract. (KATHMANDU POST 260302) The company was seeking a £ 68 M export credit for the project from the UK Export Credits Guarantee Department. Export credits are also being sought from COFACE, France's export credit agency, by the French AROUND THE WORLD company Spie Batignoles, in which AMEC has a 46 % share. The Executive Director of the Kurdish Human Massive demonstrations against Big Dams in Spain On Rights Project said, "We are delighted that AMEC has March 10 some 300 000 people demonstrated in the withdrawn from this project. For minorities on the streets of Catalonian capital, protesting against Spain ground whose homes livelihood and ways of life are govt.’s 15 year old proposal of Euro 4.2 B project that threatened by this project this a huge victory." (IRN PR include over 100 dams and vast network of canals to 130302) divert water from the river Ebro in the North to the southeast of the country. One of the demonstrators said, China: Three Gorges a toxic bomb The Chinese “What Medha Patkar and Arundhati Roy have done to academics and govt. advisers say officials are rushing increase awareness about the damage that such the job, leaving a “time bomb” of toxic waste in the megalomaniac projects can cause is phenomenal. Their form of 3-G reservoir on the Yangtze river. That would dedication has told us that intellectuals must also create a tragedy of astonishing proportions as the become activists if humanity is to progress”. (THE Yangtze basin is home to 350 M people. The dam HINDU 140302) threatens a double blow to the Yangtze’s water quality. Not only will pollutants on the reservoir bed ooze into Canada scrapes costly dam proposal Alberta and the water, but also some 155 B cubic feet of Saskatchewan scrapped plans for a multibillion-dollar wastewater, which currently reaches the sea, will dam in the western Canadian provinces, saying the concentrate behind the dam. That will stock a cocktail costs would outweigh the benefits. A study into the of arsenic, mercury, lead, cyanide and other cancer- Meridian Dam, commissioned by the two govts. last causing heavy metals in reservoir designed to water year, concluded the cost could have been $ 2.3 B to $ some of China’s most fertile farmland. It is also due to 3.5 B. (IRN PR 130302) provide drinking water for millions. Beijing gave final approval last year to the largest water diversion project Demolition of Juru Dam in Malaysia The problem of in history, the South-to-North project, which will divert flash floods faced by some 120 000 people living in fresh water from the Yangtze to the northern cities. housing estates and traditional villages in Malaysia will Critics say the clean-up plan concentrates on removing be resolved to some extent when the Juru Dam built in physical threats to navigation- such as buildings, trees 1950 is demolished. The dam was built for irrigation and bridges – and largely ignores the domestic and and to restrict the flow of seawater. (Bernama (Malaysian industrial pollution which encrusts the river’s banks or National News Agency), 220202) lies buried in the earth. The dam will flood 137 cities Swiss bank quits Turkish dam Switzerland's largest and towns; 1300 factories; 1100 villages; 4000 hospitals bank, UBS, has pulled out of a controversial Ilisu dam and clinics; 40 000 grave-sites and at least 178 rubbish project in Turkey, saying it was concerned about its dumps containing 2.8 million tonnes of garbage. social and environmental impacts. Its future had already  China plans to resolve funding problems for its $ 22 been thrown into doubt after the main contractors in the B Three Gorges HEP by offering shares on the domestic $ 1.5 B project - British consortium firm Balfour Beatty stock market and through a Hong Kong listing. It could and Impregilo of Italy - withdrew in Nov. 2001 for also seek a listing in London. The 18 200 MW similar reasons. Critics have argued that it would flood generating capacity of the world's biggest dam will be hundreds of sq km of land, including the sites of ancient injected into the listed company at a cost of about $ Ottoman and Byzantine towns and villages. More than 12.2 B, making it potentially China's largest listed 30 000 local people, mostly ethnic Kurds, would be company. The project will require the mandatory displaced. Neighbouring Syria and Iraq have also resettlement of more than 1 M people, and it may

SANDRP 25 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES increase the risk of earthquakes. (IRN PR 130302, THE HINDU-D 170302) IRRIGATION

IRRIGATION OPTIONS Canal irrigated area comes down In the period 1990-98, the net irrigated area has increased from 48.023 M Ha Local Water Development Project brings prosperity A to 54.563 M Ha, an increase of about 6.5 M Ha. As a project under Kandi (Integrated Watershed) percentage of net sown area, in this period, net irrigated Development Project has brought posperity to farmers area has gone up from 33.61% to 38.42%. Most of the of Pargana village in Nurpur Subdivision. A 400 m long increase has come from tubewells. The net irrigated canal dug from Jabber rivulet made possible by area under tubewells has increased from 14.257 M Ha contributions of the village and the project, has created in 1990 to 18.432 M Ha in 1998.In the same period, the a perennial irrigation source for the farmers. (TRIBUNE net sown area under canals has come down from 17.453 040302) M Ha to 17.092 M Ha. Some of the agricultural states are allocating less to irrigation. e.g. in UP, the Rajkheta: Where every drops counts Rajkheta one of the allocation for irrigation & flood control came down backward and drought prone villages in Chhattisgarh from the peak of Rs 14.341 B in 1996-97 to Rs 9.07 B has shown what people’s participation in water in 2001-02. (THE ECONOMIC TIMES 260302) conservation can achieve. Catching water where it falls has been the driving dictum in the efforts by a small Move to privatise irrigation in East? Union Agricultural group of people under the aegis of the Surguja Gramin Secretary has said that it has been decided to allow Vikas Sansthan. Bunding of arable fields, check dams private sector in irrigation water management in Eastern and in situ water conservation has led to dramatic rise in India. Govt. will give soft loans to private companies water table by 20 to 30 feet, as against 50-60 feet depth for this. Discussion is also on to allow private in the past. Five years back only 0.2 % of the 4 998 Ha companies in foodgrains market. (RASHTRIYA SAHARA was under some form of irrigation. Irrigation to 243 Ha 050402) of land is now assured: a significant gain of 230 Ha in CAG: Financial bungling in Orissa irrigation projects less than 5 years with well irrigation within reach of The latest CAG report submitted in the Orissa most of the 249 households in the village. The total Assembly pointed that there was 26 % cost overrun in investment made was Rs 3.1 M with tribals contributing capital projects in the state. The irregularities involved additional Rs 0.6 M by way of labour. (Third World Network Features 220302) extra and unproductive spending to the tune of Rs 11.152 B, which constituted nearly 36.24 % of the total Gujarat Water Conservation Gujarat govt. has decided expenditure of the WRD during the last five years. to implement the Sardar Patel Sahbhagi Jalsanchay Despite increase in assured irrigation potential from 17 Yojana all over the state instead of Saurashtra alone to 43 % during 1993-2000, foodgrain production where it has met with success. About 40 000 checkdams sharply dropped by an alarming 28 % owing to the lack will be constructed under the scheme for which the of maintenance of irrigation facilities. [Incidentally this Govt. will allocate over Rs 248.4 M. The minister said is the same period when WB funded Orissa Water the govt. had in last four years increased the irrigation Resources Consolidation Project was in operation.] potential to 2.7 M Ha as compared with 1.93 M Ha in There is a gap of nearly 47 % between the creation and 1998. (THE TIMES OF INDIA-A 230302) utilisation of irrigation potential. (DAILY EXCELSIOR 240302) WB loan for Tanks The WB has approved a $ 98.9 M credit for the Karnataka Community-Based Tank No tangible benefits from Kerala Irrigation projects The Management Project that supports a local approach to Evaluation Division of the Planning Board, which managing water resources in rural communities by evaluated nine irrigation projects in Kerala, has found returning the responsibility for tank development to that after spending Rs 12.89 B, these projects have not village-level user groups. This project will revitalise brought any tangible benefits. As per revised estimates about 2 000 existing tank systems to benefit about 1.5 at 1999 rates, the total cost of these nine projects stood M rural households. (http://www.worldbank.org.in) at Rs 24.629 B, the actual cost likely to be much more. The increase in cost in the original estimate was as high Kindi dam in Karnataka The Govt. is constructing Kindi as 3329 % for some projects. The Kallada Irrigation Dam to be built across the river North Pinakini, at a cost Project was the biggest irrigation scheme in the State, of Rs 8.7 M to provide irrigation to over 700 Ha of land taken for execution in 1961 at an estimated cost of Rs and arrest depletion of the water table in and around 132.8 M. The revised estimate as per the 1999 rates Gowribidanur taluk. (THE TIMES OF INDIA 280302) stood at Rs 7.60 B. A huge amount of Rs 6.20 B had

SANDRP 26 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES been spent on it. The original estimate of the (five bond programmes aggregating Rs 21.34 B), Idamalayar project was Rs 178.50 M when commenced Konkan Irrigation Development Crop (Rs 310 M), Tapi in 1981. The latest estimated cost is Rs 2.986 B. The Irrigation Development Corp (Rs 910 M) and Vidarbha project was schedule to be completed by the end of Irrigation Development Corp (two issues – Rs 3.08 B) Eighth Plan. The project is now proposed to be under ‘watch with negative implications’ following completed by 2007-08. (THE HINDU-D 290402) delay in interest payment. Since the bond issuers were unlikely to generate adequate revenues for debt Rs 720 M drain on 12 J&K irrigation schemes According servicing, the budgetary support by state govt. would to the report of CAG, top officials and other concerned support such obligations. These ratings, are thus agencies in J&K are responsible for massive reflective of the credit quality of GOM, says CRISIL. irregularities and mis-appropriation of public funds Projects like MKVDC have been adjudged by the rating worth millions and wasteful expenditure of over Rs 720 agencies as economically unviable. (BUSINESS M on the works, which lacked administrative approval STANDARD 180402, INDIAN EXPRESS 200402, THE and requisite technical sanctions. The officials of at ECONOMIC TIMES 210402) least 17 Divisions in the State have been held responsible for creating extra liability of Rs 170 M by Water thefts by ‘big’ farmers in Haryana Farmers in the executing un-approved works for which no funds were villages falling under the jurisdiction of the Rai Water ever allotted. The department has failed to provide any Service Division and Samalkha subdivision have been relief to the people despite the expenditure of Rs 4.149 facing an acute shortage of canal water for irrigation for B during the period from 1997-2001. The loan of over the past few months. They alleged that theft of Rs 300 M taken from NABARD and Central irrigation water by influential farmers backed by Government during 1996-2001 was inefficiently political bosses of ruling party and some officials is utilised. At least 12 irrigation schemes taken up for rampant. (THE TRIBUNE 200302) execution during the period 1972—84 were incomplete Rs 1800 B required to complete ongoing projects Due to as of April 2001. The revised estimated cost of these endemic and chronic time and cost overruns in major projects has increased to 359 %. Funds over rupees 70 and medium irrigation projects, at least Rs 1800 B will M have already been spent on these schemes in last be required during tenth and eleventh five year plans to over 25-30 years. Earlier the estimated cost had been complete some 160 ongoing projects. assessed as Rs 7.6 M but now it has been shot up to Rs  Budget hikes allocation for irrigation The Union 3.52 B. (DAILY EXCELSIOR 110402) Budget for 2002-03 has raised the allocation for Heavy Leakage in canals in Karnataka A WRD survey Accelerated Irrigation Benefit Program to Rs 28 B from has revealed leakage to the extent of 15 - 18 tmcft in 37 Rs 20 B. The allocation for RIDF, a substantial portion main canals and distributaries of major and medium of which goes for irrigation, has gone up from Rs 50 B irrigation projects, assuming water release for 180 days to Rs 55 B. (THE ECONOMIC TIMES 250302, BUSINESS in a year. The Water Resources Minister said the study STANDARD 010302) was taken up after he was convinced of the truth of Balh irrigation project HP govt. has approved the Rs. complaints of leakage during a visit to Malprabha 420 M Balh valley medium irrigation project to irrigate Project due to poor quality of work or lack of areas on the left bank of the Suketi, a tributary of the maintenance. The leakage in the Malprabha (leakage Beas. (THE TRIBUNE 020402) 500 cusecs), going on for years, was to the extent of 20 %. (THE HINDU-D 140302) Canal system for Chhattisgarh A Rs 1.75 B canal system for irrigating 68 000 Ha of land in Chhattisgarh will be Maharashtra Irrigation Corps default, Ratings down in place by June 2003. The 834 km canal is the biggest MKVDC, an undertaking of the govt. of Maharashtra, irrigation project in Chhattisgarh and will be completed have defaulted on interest payment of around Rs 740 M. in a period of 15 months. (THE HINDU-D 190302) The district central cooperative banks and the apex cooperative banks have an exposure of Rs 10 B in the WATER SECTOR bonds. The cooperative banks have to incur losses if they try to sell the bonds in the market. MKVDC owes WB loans for Rajasthan Water Project The WB has contractors around Rs 20 B. The corporation was forced approved a $140 M IDA loan for the water sector to raise new loans to service old loans and to pay off restructuring project in Rajasthan. “The project is aimed contractors’ dues. at use of state’s limited water resources by improving  CRISIL has placed the ratings assigned to its management, particularly in irrigation sector,” a state Maharashtra Krishna Valley Development Corporation Govt. official said. According to 1996 data, the state’s

SANDRP 27 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES total availability of water was estimated at 50.6 BCM, Groundwater pollution in Nawanshahr As per a survey of which groundwater accounted for 28 %, internal by Punjab Pollution Control Board, groundwater within surface water 37 % and inter state surface diversion 35 two km radius of Toansa industrial belt has become %. (BUSINESS STANDARD-D 060302) highly polluted with very high content of fluorides, chlorides, BOD and COD and is unfit for human Inter State Water Disputes Act amended The Parliament consumption. The pollution is attributed to mainly two has approved a series of amendments to Inter-State units: Ranbaxy Laboratories and DSM Anti-Infectives Water Dispute Act of 1956. The changes empower the Ltd and has been going on for years, without either the Union Govt. to fix limits on the time taken by tribunals state govt. or the PPCB taking any action. constituted. (THE TIMES OF INDIA-D 120302) (HINDUSTAN TIMES 200402)  TN Objections TN govt. has objected to introduction of a provision in the amended ISWDP 1956 which calls Groundwater pollution in Hapur According to CGWB for verification of river water and reservoir data the groundwater pollution levels in and around Hapur supplied by the States and appointment of empowered have been found to be very high including contaminants persons to summon the records and information from like Carbonic Acid, Chromium and Fluorides. Industrial the state govts. concerned. (THE HINDU 020402) units are pumping industrial effluents into groundwater. (RASHTRIYA SAHARA 200402) WB Credit for UP Water Sector The $ 149 M loan is meant for UP water sector restructuring project. (THE Groundwater pollution in Kanpur Groundwater in and ECONOMIC TIMES-D 090302) around Kanpur is found to be contaminated by nitrates and toxic agents discharged by tanneries and chrome GROUND WATER plating factories. (THE HINDUSTAN TIMES 090402)

Heavy metals in Faridabad Groundwater High Groundwater quality monitoring project in Maharashtra concentrations beyond permissible limits of Iron, Directorate of Groundwater Surveys & Development Copper, fluoride and sulphates found by CGWB in Agency, Pune has invited bids to set up groundwater groundwater in and around Faridabad has been quality monitoring facilities for 3370 Base Line attributed to the discharge of untreated industrial stations, 1191 trend stations and 1734 trend-cum- effluents. (THE TIMES OF INDIA 110402) surveillance stations, to be set up under the World Bank funded hydrology project. (INDIAN EXPRESS 130402) Groundwater pollution in Delhi In a test conducted by Development Alternatives under its Clean – India 2000 Grim Groundwater scenario in UP As per a survey done project at 54 locations in Delhi, it was found that the for the World Bank funded Swajal Project, there are 44 groundwater was contaminated with chemical pollutants over exploited, 171 critical and 54 semicritical blocks in like Fluorides, Nitrates and Iron due to excessive the state which add up to 33% of blocks. Worst affected withdrawal and leakages from industrial effluents, solid is the western UP, where there are 37 overexploited, 77 waste and chemical fertilizers dumps. CGWB agreed critical and 20 semicritical blocks. In western UP, that groundwater in Delhi has these and also excess groundwater level has fallen by 4 mts or more in 19 salinity. (THE HINDU 070402 THE TIMES OF INDIA blocks over the last decade. Ten districts which need 080402) urgent attention are: Budaun, Baghpat, Ghazipur, Farukkhabad, Kanpur city, Lucknow, Sitapur, Sant Toxics in Ghaziabad Groundwater The chromium (a Kabirnagar, Shravasti and Pratapgarh. (THE TIMES OF known carcinogenic) content in Ghaziabad groundwater INDIA 150402) has been found to be almost five times the permissible limit. Since over three years, reports of untreated CGWB’s National Recharge Master Plan CGWB has industrial effluents being pumped into groundwater are prepared a Rs 245.13 B master plan to recharge the coming, but no action have been taken. The toxics groundwater in the country. The plan for Punjab, traveling to Delhi groundwater is not ruled out, agrees Haryana, HP, J&K and Chandigarh is for Rs. 15.78 B. UPPCB officials. Ghaziabad UPPCB chief says it is not It includes rooftop-harvesting structures; recharge practical to take action. (THE TIMES OF INDIA 010402) shafts, revival of ponds, trenches, check dams and gabian structures. (TRIBUNE 190402) Groundwater pollution in Noida A joint survey by the Central and the UP Pollution Control Boards have Privatisation and globalisation of pump markets in East? described Noida’s groundwater “unfit even for The International Water Management Institute claims agriculture”. Yet, 200 MLD water supply is from that the best way to promote groundwater irrigation in tubewells. (THE TIMES OF INDIA 010402) India’s groundwater rich eastern region would be to

SANDRP 28 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES remove pump subsidies and open up the pump market reservoir and Chandratal – situated not far from Nahan to international suppliers. “Subsidies and import in lower Himalayas was in the list of dying lakes till restrictions have kept pump prices in India artificially recently. Now Ministry of Env. and Forests have started inflated by over 35-45 % over those in neighbouring efforts to stop silting and start desilting. (INDIAN Pakistan and Bangladesh”, it states. In east UP, local EXPRESS 030302) irrigation pump dealers are already acting as implementers of govt.’s pump subsidy programme. Deterioration of Ajmer Lake Ajmer’s Annasagar lake (BUSINESS STANDARD 230402) has shrunk from 16.4 Ha to 10 Ha. Govt. has built colonies in the catchment area of the lake since 1971, WATER SUPPLY OPTIONS which then disgorge their sewage into the lake. Just 2% of lake catchment is free from encroachment. (INDIAN Khatris of Himachal Even as people of Hamirpur, EXPRESS 280402) Kangra and Mandi districts face drought like water scarcity, people in a number of villages are using Khatri Melting glaciers due to global warming At least 44 (pits dug in rocks to collect rain water or seepage water) glacial lakes in the Himalayas are filling so rapidly they water to solve their water problems. This is a traditional could burst their banks in five years sending millions of water harvesting method in these areas. (TRIBUNE gallons of floodwaters swirling down valleys, putting at 230402) risk of thousands of lives. The UNEP sources said, "Our CGWB Master plan for HP The Rs 4.655 B master plan findings indicate that 20 glacial lakes in Nepal and 24 in involves revival of springs and ponds, construction of Bhutan have become potentially dangerous as a result check dams, rooftop rainwater harvesting and sub- of climate change." The UNEP and ICIMOD survey has surface dykes. (THE TRIBUNE 140402) identified 3 252 glaciers and 2 323 glacial lakes in Nepal and 677 glaciers and 2 674 glacial lakes in Haryana plans for land treatment The govt. plans to Bhutan. The data indicates that the glaciers in Bhutan spend Rs 300 M in the next fiscal in treating about 10 are retreating at a rate of 30 to 40 m a year. The 000 Ha of land to check soil erosion and restore the Tradkarding Glacier, which feeds the Tsho Rolpa capability of degraded land in the Shivalik foothills, glacial lake in Nepal's Rolwaling Valley, retreated 100 under the Integrated Watershed Development (Kandi) m in some of the years within the last decade. In August Project. The state Govt. has released over Rs 240 M to 1985, a sudden outburst flood from the Dig Tsho glacial treat 8 000 Ha during the current year. Around 7 000 Ha lake in Nepal destroyed 14 bridges and $ 1.5 M worth falling in the districts of Ambala, Panchkula and of damage was caused to the nearly completed Namche Yamunanagar had already been treated. (BUSINESS Small Hydropower Plant. India has refused access to a LINE-D 270302) major study that could stop hundreds of Himalayan lakes from devastating collapse. President sets an example The groundwater level over  Studies conducted by Geological Survey of India the past two years has risen by 2 mts due to rainwater has shown that Gangotri, Pindari and Milam in harvesting in Rashtrapati Bhawan. The cost diversion of Uttaranchal have been retreating at the rate of 24.6, 23.4 drains into existing wells was Rs 1.6 M. and 12.5 m and Bara Shigri in HP at the rate of 31.2 m  Rainwater harvesting in Delhi AIIMS Housing annually. These glaciers are the key modulating the Society, Charak Sadan, has put in place rainwater climate and hydrology of the subcontinent. Yet, less harvesting capacity of 1195 cubic m in an area of 6330 than 30 out of 5,000 glaciers have been studied and sq m. (THE HINDUSTAN TIMES 050302 THE HINDU barely ten for 10 years continuously. The govt. has 080402 TRIBUNE 240402) decided to set up a National Centre for Field Operations LAKES, TANKS, WETLANDS, GLACIERS… in Himalayan Glaciology under Dept. of S & T, to begin with, for studies in the Indus, the Ganga and the Lakes and Tanks in Delhi Delhi High Court, in response Brahmaputra basin. These rivers satisfy 80% of to a PIL by NGO Tapas, has given a notice to Union country’s needs of drinking water and irrigation. (ENS Env Ministry and Archeological Survey of India 180402 IANS 160402 THE INDIAN EXPRESS 280402 regarding upkeep of 508 lakes and tanks of Delhi. The RASHTRIYA SAHARA 020302) Court has directed PWD to stop broadening of Aruna Asaf Ali Road as it was leading to filling up of a tank. Demand for Chhatisgarh Tank Board Constitution of a (INDIAN EXPRESS 090302 RASHTRIYA SAHARA 100302) Chhatisgarh Tank Board has been demanded for the management and maintenance of huge water bodies like Hope for Renuka Lake Renuka, one of HP’s three the Telibandha and Buddha Talab. (THE HINDU 060402) national status wetlands – the others being Pong

SANDRP 29 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES RURAL WATER SUPPLY German aid for Rajasthan Rajasthan has so far received World Bank in Monitoring RWS The Water and 95 M DM (about Rs 19 B) – DM 55 M grant & the rest Sanitation Program-South Asia of the World Bank is loan - from Germany for supplying drinking water from providing support to the govt. of India’s Rajiv Gandhi the Indira Gandhi Canal to 141 villages in Churu, National Drinking Water Mission to develop and Jhunjhunu and Hanumangarh districts. (THE HINDU implement a monitoring and evaluation system. The 020302) Mission is implementing a Sector Reforms Project in Rural Water Supply aimed at institutionalizing Water crisis grips Karnataka districts The villages in community participation in planning, implementing, nearly 40 % of the 175 taluks in Karnataka are to operating and maintaining RWSS. (THE TIMES OF witness shortage of drinking water in the coming INDIA 140302) months, the drought-monitoring Cell has predicted. The monsoon shortfall witnessed last year is considered to Villagers boycott the ballot The villagers of Malegaon be the worst in the last 30 years. (BUSINESS LINE Theka in Wardha district have boycotted the election 160302) process in the recently concluded Jila Parishad and Arvi Assembly by poll. Surrounded by five big or middle- WB Credit for Karnataka The 6-year $ 151.6 M Credit sized irrigation dams (Bor, Mahakali, Borkhedi, for rural water supply & sanitation project is supposed Panchadhara and Madan, all in the radius of 10 km, to assist in increasing rural communities’ access with the last one just 2 km away), they have no water drinking water & sanitation services; decentralisation to for their farms as village is at an elevated level. 15% gram panchayats and user groups. (ECONOMIC TIMES people have migrated in the past few years. (THE 090302) INDIAN EXPRESS 030302)

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SANDRP 30 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Recommendations (Extracts) 2.19 The committee finds that the actual ground reality in respect of coverage of habitations is something Parliamentary Standing committee on Urban and Rural different. They have repeatedly been stressing on the Development (2002) Govt. to find out the ground reality by conducting Ministry of Rural development survey by independent agencies. Besides they have also (Department of Drinking Water Supply) Demands for grants: 2002-2003 been recommending to have some in built mechanism Thirty Second Report for such survey after a fixed period of time. They find that the Department has agreed for such a survey after a 2.16 The committee finds that there are certain period of five years. They hope that such a survey will disturbing features with regard to the implementation of be started very soon. They would also like that position one of the top most priority programmes of the Govt. of slippage of FCs category to NC and PC categories i.e. to provide potable drinking water to the rural and PC to NC category is also taken care of during the population. The shortcomings as noticed by the said survey. committee are as below. (i) The availability of the funds is less than one third of 2.23 It is really a matter of concern that after more than the estimated requirement in the comprehensive five decades of independence and the plan development action plan. In view of the inadequate in the country, most of our school are yet to be provided allocation, the committee expresses their doubt the facility of drinking water, which is the basic about the fulfillment of the set targets in the necessity of life. The Department’s claim to cover all National Agenda for Governance of coverage the habitations by 2002-2003 by providing drinking of all rural habitations by 2004. water seems unrealistic when the overall position of (ii) Not only inadequate allocation to the Department, coverage of schools is analysed. Even if the Govt.’s but what is provided at BE stage is reduced at data is believed, about 44% of the schools could only be RE stage. provided drinking water so far. They also find that the (iii) Whatever allocation is provided it is not being data as given by the Department may be only of Govt meaningfully utilised. There is huge schools. When the data regarding other schools i.e. underspending as regards the release of funds private and public included, the situation may be further by the Centre to State Govts. Besides, the alarming, while the school coverage was taken into position is alarming when the States’ physical consideration under ARWSP since 1999-2002, the and financial progress is analysed. performance is very dismal. The Committee strongly (iv) There is huge underspending with the State Govts. recommends that all the schools should be provided drinking water within minimum possible time. 2.17 The Committee feels that under-utlilisation of th resource is the main reason for getting the lesser 2.29 The Committee finds that the projection of 10 allocation for Planning Commission/Ministry of Plan in respect of proposed targets under drinking water Finance. Besides the Members find that the Department supply programme are three times of what was th is not serious in the reasons for the dismal performance allocated during 9 Plan. The Committee has their of such an important programme. Whenever asked doubts about getting the adequate allocation from the th about the reasons for slippage of targets, routine reply Govt. The actual allocation during the first year of 10 stating that NC and PC habitations are located in the Plan is an example in this regard. The Govt has difficult terrain etc. is furnished. The committee has provided nearly one-third of what was projected during been receiving this type of reply for the last two three 2002-2003. If similar trend is followed, the Department years. This shows the casual approach of the Govt. would be getting more or less the same of what they got th Further, they are unhappy to note the reply of the Govt. during 9 Plan. There is doubt in achieving the laudable th that underspending is due to surrendering of Rs 61.82 targets set during 10 Plan. The Committee, therefore, crore to non-lapsable pool of resources for North-East. urges Govt to persuade the Planning Besides, the Committee finds that the targets set during Commission/Ministry of Finance to accept the urgency each of the year are somehow unrealistic. The of providing adequate outlay for this sector. As stated Department has set the targets to cover 17,479 NC by the Secretary during the course of oral evidence habitations, whereas they could cover 6,655 and 1,627 some efforts are being made to get the funds from habitations during 2000-2001 and 2001-2002 various international agencies like World Bank. respectively. 2.35 The various issues with regard to providing drinking water to rural masses were discussed in the recent Conference of State Ministers in charge of rural SANDRP 31 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES drinking water supply and various valuable 2.83 While going through the data furnished by the recommendations were made in this regard. One of the Department with regard to the expenditure made during recommendations was to revise the norms, which were 8th and 9th Plan on sub-mission programmes to tackle fixed years back during 1972-1973. While quality problem, the Committee concludes that much recommending for revision of the said norms, the emphasis is not being given in this regard. They also Committee would like the first priority is accorded to find that 10th plan Working Group has recommended for cover all rural habitations within the existing norms. Rs 10 000 crore exclusively to deal with quality problem in drinking water. 2.48 The Committee is concerned to note the dismal performance of Sector Reform pilot projects as could be 2.84 The Committee notes that in Rajasthan, to tackle seen from data given by the Department. They fail to the quality problem on a temporary basis, domestic understand how the Department could be contended water filters have been provided under ARWSP. with such slow progress of the pilot districts. 2.85 the Committee is concerned to note that there is no 2.49 The Committee finds that the Secretary during the research institute in nodal laboratory dealing course of oral evidence has acknowledged that to make exclusively with water quality R&D. they also note that these pilot projects successful, there is a need to change the Government have proposed to set-up a Centre for the mind set of the people. Excellence for arsenic in Kolkata. 2.59 The Committee is disturbed to note the position of 2.86 The Committee finds that a major pollutant of availability of the drinking water in various schools in drinking water is fluoride. To tackle this problem North-East, as acknowledged by the Secretary, very few adequate steps have not been taken by the Govt. They schools could be provided with the drinking water would like to recommend that the Govt. should set-up a facility. fluorisis control cell at the Central level comprising of officials of both Rural and Urban Ministry and other 2.77 The Committee observes that ensuring concerned Ministries like Health, Water Resources. sustainability of drinking water sources is the major challenge that has to be faced by the country in the 2.102 Regarding the system of monitoring of rural coming years. Due to uncontrolled extraction of drinking water supply programme, the Committee Groundwater in various parts of the country, water table would like to recommend that the Department should has reached a precarious situation. They also note that think of devising a mechanism of having periodic the various Centrally sponsored schemes depend totally meetings of concerned Union Ministers alongwith on ground water. More stress to be given to alternate Central officials. They should also think of inviting sources of water like, maintaining traditional sources of MPs/MLAs of the State at the said meetings. water and rainwater harvesting, etc. While noting that some of the states have done excellent work in this 2.110 The Committee is also unhappy of the manner in regard, specifically Mizoram, the Committee urges the which the Government instead of improving of existing Govt. to make the other States aware of the success schemes and consolidating their gains, if any, go on stories of these States. launching new schemes which again suffer for want of proper infrastructure are admitted by the Government in 2.79 The Committee finds that the problem their written note. sustainability of water resources is being tackled by different Central Ministries like rural Development, 3.16 Though the Committee has repeatedly been Agriculture, Water Resources. They recommended that recommending that the Central Rural Sanitation the Department of Drinking Water should coordinate Programme be given more importance and adequate with these Ministries. outlay should be provided for the purpose, the following facts speak otherwise: 2.82 As regards the quality of drinking water, the (i) the targets fixed during 10th Plan to cover 50% Committee finds that sufficient attention is not being of the population in the rural areas were paid in this regard. They are constrained to find the reduced to 25%; huge number of water treatment plants going defunct. (ii) The outlay provided during 2002-03, the first They also recommend that further emphasis should be year of 10th Plan is nearly 1/5th of the proposed given for having a mobile water-testing laboratory in outlay; each district in the country. (iii) From 2000 onwards the number of toilets constructed is showing a downward trend

SANDRP 32 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES (iv) Only around 9% of the schools could provided with lavatory facilities and out of that only one half of the schools could be provided separate toilets for girls; School sanitation is a hygienic aspect of the national health of the younger generation. However, the attention given to it has not been to the optimum level. It is disheartening to note that the Govt. is playing with statistics only, whereas on the ground, very negligible work has been done. A school without a toilet and washing facilities is unthinkable and below any civilised norms of the society.

SANDRP 33 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Thousands of Gujarat villages to go thirsty The worst Budgetary resources not enough? The Union Minister of affected districts include Rajkot, Bhavnagar, Amreli State for Urban Development has stated that the water and Jamnagar in Saurashtra region and Banaskantha, supply and sanitation problem cannot be addressed Patan and Mehsana in north Gujarat. In Amreli, 400 of from budgetary resources. "As against the investment 613 villages are dependent on tanker water. In Rajkot, requirement of Rs 220 B annually as per India by mid May, 700 of 976 villages will be facing scarcity. Infrastructure Report, the budgetary support from govt. In Porbandar district, 65 of 155 villages are already sources are available only to the tune of Rs 50 B per dependent on tankers. Across Saurashtra, some 3200 annum thereby leaving a gap of nearly Rs 170 B per villages are already dependent on tankers. The govt has annum." The statement seems to have been made to so far spent more than Rs 30 B on laying two major push for privatisation. (PIB PR 100402) pipelines for Saurashtra, which is yet to bring any benefits. State Water Supply Minister claims it would BOTTLED WATER BUSINESS solve drinking water problem of over 3500 villages. He BIS Certificate is a must As per the Prevention of Food said Rs 85 B will be spent on these projects in the next Adulteration Rules (6th amendment), 2000 no person 2-3 years. can manufacture, sell or exhibit for sale, packaged  Narmada waters for Ahmedabad, none for drinking water or mineral water without the certification Saurashtra villages The Saurashtra villages continue to mark from the Bureau of Indian Standards. (THE TIMES face drinking water scarcity even as Narmada waters OF INDIA 220402) are available to big towns like Ahmedabad. This when the Narmada project was pushed and justified in the Bottled Water Business Railways plan to provide Rail name of Saurashtra and Kutch and there was supposed Neer in trains and at platforms, bottled at its own plants, to be NO ALLOCATION for towns like Ahmedabad for which tenders have been invited. from drinking water share of SSP. (THE TIMES OF  Parle’s Bisleri claims over 40% share in the INDIA-A 170402, INDIAN EXPRESS 270402) organised market, though it is now declining, while Kinley (launched in Aug. 2000) with 28% market share URBAN WATER SUPPLY is ahead of Aquafina, which is third with 10% share. Double water tax in Rajkot The residents will now have Last summer, the Bottled water category grew by 24%. to pay Rs 480, as against the present charge of Rs 240. Nestle (selling in India at Rs 70 per litre) is finding it (THE TIMES OF INDIA 080302 & 090302) tough in water business. Nestle’s Perrier brand was disallowed in India as it does not confirm to Indian Water shortage in Delhi A study by TERI claims that the standards of acidity and calcium content. Total market water table in most parts of Delhi is falling rapidly and for bottled water in India is estimated to be over Rs 8 B. in many places in South Delhi it is almost bone dry. The Pepsi plans to set up at least three more plants in scarce rainwater runs off without being tapped. Delhi addition to its existing five plants, investing Rs 100 M receives approximately 1150 MCM surface water from in each plant. Coca-Cola plans to set up another 10-15 Yamuna, Ganga and Bhakra and of this, 60 % is from plants by the end of 2002, in addition to its existing 15 Yamuna. (THE TRIBUNE 150402) plants.  Hello water claims to sell 10000 Bottles of 20 L Untreated water supply for drinking The latest report of each and Parle claims to sell 12000 bottles of 20 L each CAG of India has revealed that the drinking water daily in Delhi, the business is growing at 25% per supplied by some projects, started by the Ministry of annum. Urban Development and Poverty Alleviation is not  According to a study, after the bottled water giants made suitable for human consumption. The main aim of entered England, water rates increased 450%, company the projects started in 1994, was to supply sufficient profits zoomed 692% and the salaries of the CEOs of potable water to 2 151 towns below the population of the these companies have gone up 708%, and finally, 20 000. The Ministry has prepared Rs 20 B action plan. the dysentery has gone up 600%. But up to March 2001, only 575 towns could be  Groupe Danone, a mineral water MNC known for included and Rs 4.79 B has been released. According to premium water brand Evian (the world’s biggest global report, water has not been tested in UP, Karnataka, mineral water brand in terms of volumes, though Nestle Orissa, Manipur, Himachal Pradesh and Maharashtra is first in value terms), has been given permission to set before supplying as drinking water. Report also up a office in India. It is negotiating to acquire discloses large-scale fund diversion from the schemes. Himalayan, a natural water brand. (JANSATTA-D 050402)

SANDRP 34 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Mineral water plant leaves villages dry A Kinley mineral Chhattisgarh for water supply in the new capital being water plant at Sattupalli in Khammam district in AP is planned provided the management is given to private drawing 0.225 M litres of groundwater daily, drying up parties. (THE HINDU-D 180402, BUSINESS STANDARD the water sources of the villagers. There are two Kinley 190402) bottling plants in AP, the third one is coming up. (BUSINESS STANDARD 040302, 130302, 010402, The water privatisation push The fact that 1.1 B people, BUSINEE LINE 130302, 030402, THE TIMES OF INDIA mostly in the developing countries, lack access to 180302, INDIAN EXPRESS 260302, THE ECONOMIC adequate clean water is reason enough for the growing TIMES 110402, 120402) water industry to rejoice. Estimated to be worth $ 7 trillion, the global water industry has assured itself of No check on quality of water sold in jars According to profits at least for the next 25 years, during which time the Prevention of Food Adulteration Dept, there are the number of people without access to potable water over 50 brands of water being sold in jars and most of will move closer to 3 B mark. Water privatization is one them are non-ISI. The PFA dept is the only agency to of the many conditions that determine the extent of check the quality of packaged mineral water. It lifts loans under the WB’s Country Assistance Strategy. samples of only 1,2 and 5 litre water bottles. In the last Paraguay is the latest victim of this strategy as the Bank three months, 9 of the 68 samples lifted by the dept suspended a $ 46 M loan for not complying with the were found adulterated. According to PFA dept, stipulated conditions attached to the loan. For accepting samples of water being sold in over five litre unsealed its pre-condition to raise water tariff by 95 % the WB jars are not tested. (HINDUSTAN TIMES-D 300402) had approved a similar loan of $ 110 M for Ghana in WATER PRIVITISATION July 2001. If the recent violent protests in Bolivia and the emerging opposition in Ghana are any indication, Trashing water is good business for water companies In privatisation of water is being resented by the civil Chennai, two sister companies, French multinationals society. Yet, there is no let down as govts in developing Onyx and Vivendi, are working at cross-purposes. countries succumb to donor pressure for facilitating While Vivendi is in partnership with civic authorities to privatisation of their water utilities. convert scarce fresh water from a public service to a  In India, already some 30 cities in Maharashtra, commercial product, Onyx collects the city's garbage Karnataka, Andhra Pradesh and Rajasthan are bidding from three key areas and dumps it in one of the most their respective municipal water supply to handful of important freshwater ecosystems in the city. The powerful multinational corporations specialising in experts maintain that if what remains of the city’s vast water. Tirupur town in Tamil Nadu and Hubli-Dharwad network of tanks and natural lakes is taken care of, the in Karnataka has moved closer to privatisation of their city can be self-sufficient in water and even meet future water utilities. Delhi’s water supply will soon be in the needs. At a cost of Rs. 650 000, CES Onyx collects and hands of infamous Vivendi. The govt. has estimated disposes at least 1000 tonnes of garbage everyday in that $ 65 B would be required in water and wastewater and around the freshwater wetlands of Pallikaranai sector over the next decade and has urged the state towards south of the city. Onyx is the garbage govts to raise water tariffs to become eligible for credit. management arm of the French MNC Vivendi, which is Interestingly, crucial decisions about water privatisation also the largest water company in the world. Vivendi and cost recovery between donors and key govt. leaders has a special consultancy with Metrowater to help are made behind closed doors and without the improve the management of water supply to Chennai. knowledge and consent of citizens. (DECCAN HERALD Municipal waste dumping in Pallikarani can have a 100402) deadly effect on water bodies. The Onyx’s source says Delhi Jal Board to go into private hands The Finance that that the decision to dump in Perungudi/Pallikaranai Minister of Delhi has announced that the Delhi Jal was the Municipal Corporation's. In fact, Onyx is Board would be privatised in due coarse of time. merely continuing the decade-long tradition of dumping Following advise of the WB private consultants Price on wetlands. Metrowater, which manages the city's Waterhouse Coopers, Netherlands based DHV and Tata sewage, discharges "treated" sewage water directly into Consulting Engrs were appointed in 2001 to carry out a the wetlands. Chennai Municipal Corporation is now study and suggest steps to re-structure DJB. Consultants considering handing over the city's water supply and will submit the report by Oct. 2002. The Bank also distribution to private companies. (www.corpwatchindia.org 250302) proposed that if it improves the position of DJB then Bank could give Rs 16.25 B for investment in water WB push for privatisation in Chhatisgarh The WB has sector. WB has given the grant of Rs 75 M to the Delhi agreed to provide financial assistance to the govt for consultancy. Some pilot projects have been

SANDRP 35 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES started for privatisation. DJB will hike the water tariff monopoly to Aguas del Tunari, part of the British before privatising the sector and a regulatory body is company International Water Ltd., in turn owned by the being suggested for fixing tariff. The cost of supplying US engineering giant Bechtel. The new owners, who 1 KL of water is Rs 0.4, whereas water rate for the same had been granted a 40-year concession, announced price quantity is Rs. 0.035. The WB had recently dubbed the hikes before they even began operations; in a region board as worse than any public utility in sub-Saharan where the minimum wage is under $ 100 per month, Africa. (RASHTRIYA SAHARA 270302 & THE TIMES OF people faced increases of $ 20 per month and more. INDIA-D 250402) Peasants now had to buy permits to collect rainwater from their own wells and roof tanks. All autonomous WB push for privatisation criticized A National Water water systems had to be handed over without Parliament, called in Delhi on March 22, criticized the compensation. People revolted against all this. The role played by the World Bank in using its loan Coordination for the defense of water and life organised conditionalities (e.g. in Delhi, UP, Orissa) to promote the first protest in Dec. 1999 and numbers of protest privatisation of water resources, violating people’s later on. For two months no one paid water bills. Police constitutional and natural water rights. (THE HINDU fired on the crowd: hundreds of people were injured and 230302) two youths were blinded. President Banzer declared War against privatisation in Bolivia In a defining martial law on 8th April 2000. The water privatising struggle against globalisation, the people of company made an exit from the country. La Cochabamba, Bolivia took back their water from the Coordinadora talked with a Govt. delegation and they hands of a corporate conglomerate. The WB had agreed that the water contract should be broken. The pressurised the Bolivian Govt. into privatising water Cochabamba water revolt became an inspiring and companies in 1990. It refused credit to the public powerful international symbol in the struggle for global company which ran the water services, recommended to economic justice. (Kashmir Times180302) pull out public subsidies, and insisted on giving a

QUOTES The trend of globalisation is that surplus capital is moving from the periphery countries to the centre, which is Unites States. George Soros, International Financier (THE TIMES OF INDIA 220302) Liberalisation and privatisation have been pursued as ends in themselves rather than as a means to attain more basic objectives of faster and equitable growth, or greater economic stability. Worse, these have been pursued even when the consequences have worked against the basic objectives. N A Mujumdar, former principle adviser to RBI (BUSINESS LINE 060402) It is strange that at a time when the govt. cannot find money for food-for-work programmes, it can spend crores on storage facilities. Prof. Jean Dreze of Delhi School of Economics (OUTLOOK 040302) The concept of self-sufficiency in foodgrains production is obsolete… Yashwant Sinha, Union Finance Minister (BUSINESS STANDARD 250302) 94 % of the rice procurement is from Punjab, Haryana and AP while 81% of wheat is procured from Punjab, Haryana and UP. The rest of the 10 crore farmers in the country have to resort to distress sales… The pulses and oilseeds import bills have touched Rs 100 B. Shanta Kumar, Union Food Minister (INDIAN EXPRESS 250302) Considering that part of the food subsidy goes towards subsidizing the wheat exports to be used as cattle feed in sundry parts of the world, this scam has gone on for too long. Editorial comment (THE ECONOMIC TIMES 040402) Private monopolies (as planned in Delhi power distribution reforms) are patently unconstitutional; they abrogate fundamental rights and are anathema to democratic philosophy… All this will Dabholise the DVB… The manner in which huge guaranteed returns have been assured after shortlisting of bidders vitiates the entire exercise… the consumer will end up paying over 27% by way of annual return on equity during the next five years. There is

SANDRP 36 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES hardly any competition as only three bidders are in fray for three circles… Two of the bidders have a track record of defaulting on payment to state owned entities by almost Rs 10 B each. Besides, if the Discoms reduce thefts beyond the agreed level, they can keep half the gains… Can a civilized society allow a policeman to retain 50% of the value of stolen goods recovered? This could tempt the policeman to declare an honest person a thief… this will lead to Orissa like fiasco… Gajendra Haldea, head of the Centre for Infrastructure and Regulation, NCAER (THE TIMES OF INDIA 070302) Inter-basin transfer of water was the only permanent solution to tackle drought and floods. [Will the minister reply if full potential of local water system has been realized in even one river basin in the country?] Arjun Charan Sethi, Union Water Resources Minister (THE HINDU 170802)

SC okays GAP Phase-II The Supreme Court gave the FLOODS green signal for the resumption of the Rs 2.5 B Ganga Plan panel for new Flood Commission The working Action Plan Phase II, which was held up for some time group on flood control for the 10th five-year plan has by stay orders from courts. The Project includes five suggested that the govt. should set up an integral flood effluent treatment plants, designed to meet the management commission to review the progress of the requirements of Varanasi for the next 30 years. The flood management programme and implementation of National River Conservation Directorate pointed out to the National Flood Commission recommendations. It the Court that of the 240 M litres a day of sewage, only has recommended a combined central and state outlay 80 M litres was being treated and the rest flowed of Rs 106.32 B to protect about 2.8 M Ha in the 10th untreated in to the Ganga. (BUSINESS STANDARD 230402) plan. (BUSINESS STANDARD-D 030402) Project to reduce river pollution launched Rs 33.29 B Sudden Releases from Tajewala creates flooding Sudden action plan for pollution reduction along stretches of 27 release of water into Yamuna River from the Tajewala rivers, including the Ganga, the Yamuna and the headworks on the Haryana UP borders without prior Cauvery, has been launched. The Union Minister for information to the villages along the river badly affects Environment and Forests said that the impact of the at least 50 villages every year, destroying crops and scheme under the National River Conservation Plan in fertile land. This year the release also affected 152 towns in 16 states would visible after the work, thousands of people staying in slums along the river in which is to be completed by 2005. (THE HINDU-D Delhi as the water level in Yamuna river suddenly rose 160402) without prior information. (RASHTIRYA SAHARA 060302, 070302 TRIBUNE 080302) Yamuna Pollution in Delhi While the Yamuna river traverse the 22 Km Delhi stretch of its 1,367 km long Villagers oppose another bundh Residents of more than journey for Yamunotri to Allahabad, where it merges dozen villages of the Mand area of Kapurthala in with the Ganga, it gets 80 % of its pollutants. About 1 Punjab have said the construction of another proposed 800 M litres of untreated domestic waste and another advance bundh to be built adjoining the Dhussi bundh 300 M litres of industrial waste ends up in the river by the drainage department should be stopped to save daily. (THE TIMES OF INDIA 230402) their land from floods. The Deputy Commissioner directed resurvey of the proposed bundh to be Environment Atlas CPCB and National Atlas & constructed from Darewal Bharona village in order to Thematic Mapping Org has brought out an save more than 1 300 Ha of land from floods. (THE Environmental Atlas of India. (THE TIMES OF INDIA TRIBUNE 040402) 250302)

400 Ha destroyed due to TPS effluent About 400 Ha of ISSUES ABOUT RIVERS agricultural land in Panipat district in Haryana have been flooded and destroyed as drain no 3 passing Supreme Court admits petition on Bheema waters The nearby have been silted up by the effluent from the Tau Supreme Court had admitted a public interest litigation, Devi Lal Thermal Power Station since last seven years. which has sought to ensure supply of water in the river The drain has not been desilted for many years. for people to have access to their drinking water (TRIBUNE 180402) throughout the year. The court has issued notices to POLLUTION Karnataka, the Union Govt. and the Central Water Commission. The petitioner, the Bheema Nadi Neeru Rakshana Raithavarga Samithi contended that the

SANDRP 37 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Bheema river remained dry between Nov. and May Pradesh govt. and various NGOs to bring back the every year since 1998. This caused hardship to 0.3 M Bhagirathi to the city banks and make it pollution free. people living in 134 villages on the banks of the An ambitious Rs 3 B Ganga Barrage project and Bheema in Karnataka, as they did not have access to movement for cleaning the river form part of these water. This also caused adverse impact on the flora and efforts. Recently, the State govt. had sought an fauna in the region and caused ecological imbalances in assistance of Rs 3 B from the Japanese govt. for the river system. The petition alleged that the depletion strengthening facilities of sewage and effluent treatment of water was caused by Maharashtra as it was storing plants and for diversion of sewage drains. However, the and utilising more than the quota allotted by Bachawat mining of sand in the riverbed poses a major threat. Tribunal. Farmers were very happy with what they (BUSINESS LINE-D 020402) called the first victory in their agitation. (THE HINDU 090402) China to give Hydrological Data to India According to a recently signed India-China agreement, the three Indus Water Treaty review demand The J&K Assembly hydrological stations, all located along the Yarlung has called for a review of the Indus Water Treaty Zangbo (Brahmaputra) River, will offer hydrological between the India and Pakistan so as to reduce the data to India from June 1 to Oct 15. The forecasts will alleged losses being suffered by J and K since 1960, help cut losses caused by floods. (People's Daily 250402) when the treaty was signed. According to discussion, when the treaty was signed the interests of J and K had Bihar sanctions 1 B for GAP The Bihar Cabinet has not been kept in view. approved a Rs 1 B proposal for work under the Ganga  Demand unjustified The govt. should pay no heed to Action Plan of the Bihar State Water Board to be used such demands. The proposition is dangerous, as it for repair of sewerage plant and other works relating to would legitimize counter calls for the bombing or GAP. (THE HINDU-D 070302) sabotage of Bhakra-Pong and other Indian dams. The Hotel owned by politician’s family fined Rs 1 M The treaty permits India to formulate schemes for rural and Supreme Court found a hotel owned by the family of a urban water supply in J&K as far the three western senior political leader guilty of environment rivers of Indus basin are concerned. Other non- degradation and asked it to pay a fine of Rs 1 M as consumptive uses are also permitted. The treaty allows damages. Noted lawyer M.C. Mehta, had filed a suit India to build storages aggregating 3.60 M acre ft on the against building a motel in Kullu on the banks of the three western rivers in the J&K: 1.60 MAF for Beas River in Himachal Pradesh. Following damages hydropower, 0.75 MAF for flood moderation and 1.25 due to floods on Sept. 5, 1995, the hotel management MAF for general storage for non-consumptive uses, attempted to divert the flow of Beas upstream from the including power generation. The western rivers hotel with total disregard of its impact on people or collectively have an assessed hydropower potential of environment. The order referred to the report of the 8825 MW at 60 % load factor. At the turn of the CPCB, which enumerated activities of Span Motels century, however, under 1400 MW has been harnessed, which "constituted callous interference with the natural only 4 MW of this on the Indus itself. India is entitled flow of the river Beas, resulting in the degradation of to irrigate 0.54 M Ha from the three western rivers the environment and which have interfered with the against which only about 0.324 M Ha are currently natural flow of the river.” The court had found in 1996 irrigated. One negative byproduct of the Indus Treaty that Span Motels Private Limited owned a resort near was the callous disregard of R&R of the large numbers the Beas and had encroached upon 30 000 square mts of displaced by Mangla Dam on Jhelum in Pakistan protected forestland. The court has also held HP govt. occupied Kashmir. This caused thousands of Mirpuris guilty of “patent breach of public trust”. (IANS 150302, to migrate to the UK in the 1960s. Pakistan now INDIAN EXPRESS 180302) contemplates raising the height of the Mangla Dam, which needs watching. On the whole, the demand UNESCO and Green Cross International Join forces to comes from megalomaniac politicians. (THE TRIBUNE avert Water Conflicts Mikhail Gorbachev, President of 040402, 290402) Green Cross International, and UNESCO Director- Ganga is changing its course The river Ganga, which General Koïchiro Matsuura signed a two-year used to flow along the Kanpur ghats about 50 years ago, agreement aimed at joining forces to help avert started to change its course in 1960s and gradually potential conflicts over the world's water resources, drifted away toward Unnao and the main stream now particularly the 261 river basins which extend over flows about 9 km from the Bhairon ghat intake point in more than one country. The joint UNESCO/GCI Kanpur. Efforts are being made by the Centre, the Uttar initiative will contribute to the World Water

SANDRP 38 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Assessment Programme's first World Water critics of the scheme rubbish it on two counts: first that Development Report, due to come out in time for the it will create a mini Enron situation and second that the Third World Water Forum in Kyoto, in March 2003. solution lies in feeding malnourished millions in stead (www.greencrossinternational.net) of storing more and more. The food subsidy bill has gone up essentially because storage costs have gone up The state of Indus River Keti Bander in Pakistan, once a to Rs. 50 B per annum as the offtake of wheat from FCI bustling city and important seaport, is now reduced to a has actually fallen since the introduction of targeted tiny village of a few hundred inhabitants, who are PDS in June 1997. (OUTLOOK 040302) deprived of all basic facilities. Drinking water is transported from distance of 75 kms. Local residents Leave it to Panchayats Many farmers feel the govt. and experts attribute the problems of this region with should leave the business of storing grain to the village the continuous decrease in the flow of fresh water in panchayats rather than opting for desperate measures Indus. Not a single drop of fresh water has flown in the like privatisation. This will lead to building of delta downstream of Kotri barrage for last several years. permanent assets in the villages. Farmers from Bhiwani About two-thirds of the population of this area is (Haryana), Kalahandi (Orissa), Darbhanga (Bihar) and fisherfolk, depending on fishing for their livelihood. Banda (UP) believe this will be the best option. This Now the fish resources are also depleting making will save transportation costs, and reduce losses, as earning of livelihood hard for these fishermen. After the farmers know how to store without losses. construction of Sukkur Barrage and Indus Water Treaty  Community Food Banks M S Swaminathan has in 1940 and 1960, respectively, Indus water was suggested that a grid of community food banks should diverted to agriculture land, storage for reservoirs and be set up. Green Revolution’s strategy of food security for hydropower generation. On the one hand, flow of through increased production alone has clearly reached fresh water into the delta is stopped while on the other a dead end. (THE ECONOMIC TIMES 270402 (Edit), hand, agriculture; industrial as well as urban effluent of INDIAN EXPRESS 180402) the entire country is being dumped into the Indus Delta. Presently, more than 2 500 cusses of Left Bank Out Fall Parliamentary committee criticizes foodgrains situation Drain effluent comprising poisonous pesticides residues The Parliamentary Committee on Food, Civil Supplies are thrown in the delta daily. (SUNGI Development and Public Distribution has said that lack of uniform Foundation-Pak 260302) procurement policy has led to distress sales in States such as Bihar, Gujarat, MP, UP and Orissa. It said FOODGRAINS MANAGEMENT NAFED should be asked to procure coarse grains. It is estimated that the transit and storage losses during Private Sector Foodgrains Storage proposal: Another 2000-01 were Rs 1.72 B and Rs 2.27 B respectively in Enron? The new private sector participation policy in addition to loss of Rs 2 M as thefts. About 0.2 MT of foodgrains storage announced by the centre has all the non-issuable foodgrains stagnating in godowns should trappings of another Enron. The private sector, invited be disposed off quickly. The committee has strongly to construct foodgrains storages of 2.1 MT on BOO opposed the Planning Commission move to discontinue basis, is guaranteed 100% capacity utilisation for a construction of small godowns of 2000 T capacity and decade and 75% for another decade. Even if this means has asked the ministry of food to pursue with the state that the FCI godowns remain empty. In addition, a tax govts. (THE HINDU 260402) holiday for five years and a partial holiday for another five years. Not to mention heavy incentives for financial Court Stay on FCI Tenders FCI had brought out a tender institutions putting money into the project. Not on April 16 for selling “low quality” rice and wheat, to surprisingly, 65 companies including big names like be closed on April 18! This when time required to fullfil Cargill, Reliance, Mitsubishi, L&T, etc have shown the conditions require two days at the least. Smelling interest. Currently, says secretary food and civil corruption, the Mumbai High Court gave a stay on the supplies, around Rs. 3.5 B worth of foodgrains is lost tender and have directed FCI to give minimum of 15 annually in transit and storage. But the excess payouts days time in the tenders. (RASHTRIYA SAHARA 270402) to private sector would amount to Rs. 3.57 B per year for two decades! The FCI’s current annual carrying cost Foodgrains related restrictions removed Effective from is Rs 2300 per tonne and the private sector will get Rs. 170302, the central govt. has removed restrictions 4000 per tonne, meaning thereby, Rs 8.4 B windfall for regarding buying, selling, storage, transportation, etc of the private sector, exclusive of the tax benefits. Food wheat, rice/paddy, coarse grains, sugar, edible oilseeds ministry officials admit that the investment required and oils. The govt. adv. claimed: “This decision will would be Rs 30 B, roughly Rs 15 000 per tonne. The facilitate farmers to get better prices for these items and

SANDRP 39 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES the poor in all parts of the country to get foodgrains at date this year has almost all gone to Cargill as the main reasonable prices”. (THE TIMES OF INDIA 230302) trader (Toepfer, also an MNC, being another), through STC, MMTC, Markfed, others. (THE HINDU 080302, Storage Costs are 42% of food subsidy The buffer BUSINESS STANDARD 050302, BUSINESS LINE subsidy as a percentage of food subsidy, a mere 12.5% 060302, THE ECONOMIC TIMES060302 & 290302) in 1997-98 (Rs 9.37 B out of a total of Rs 75 B) had  Scam in Rice Exports? Traders are buying high reached 35.2% (Rs 42.33 B of a total subsidy bill of Rs quality (5% broken) rice from FCI at low price of Rs 120.10 B) in 2000-01 and then to 41.6% (Rs. 56.8 B out 5.65 per kg, sell it in open market at high rates and of Rs 136.7 B). Thus, while the food subsidy rose by prepare bogus export deals. (THE ECONOMIC TIMES 82.27% from 1997-8 to 2001-02. The actual distribution 090402) subsidy, however grew only by 21.74% in the period as the buffer subsidy rose by an unbelievable 519%. The Export Subsidy While the support price for wheat is Rs proposals lying before the finance ministry to reduce 6100 per tonne, after adding transportation, storage and APL and BPL issue prices and raise quantum allocated administrative costs, it becomes Rs 9000 per tonne. The to both groups was not approved. exporters buy wheat from the govt. at Rs 4250 per  The food subsidy was Rs 28.5 B in 1991-2. tonne, which is 53% below the cost price. Exporters get According to estimates, over 30% of the grains allotted white rice at Rs 5650 per tonne, almost 50% below the for BPL families find their way to the open market. cost. Even through TPDS was started in 1997, some 11 states  Transport subsidy for exports The Union Commerce and four UTs are yet to identify families below the Minister has announced transport subsidy on foodgrains poverty line. moved from FCI godowns to the nearest port for export.  The food subsidy presently includes purchase levies  The new exim policy will further widen the gulf taxed by states on procurement. The amount involved is between the rich and the poor farmers. Only the close to Rs 30 B annually. The centre now plans to recession-hit businesses and industries will be enthused make this amount part of MSP so that the states can to exploit the subsidies. The policy of the govt. is levy purchase tax only at the expense of farmers and rendering the agrarian sector vulnerable to cheaper and food subsidy comes down to that extent. (THE highly subsidised foodgrain imports. Instead of ECONOMIC TIMES 080302 & 230402, BUSINESS LINE squandering public money on a section of the exporters, 300302) the emphasis must be on benefiting the small and marginal farmers. (THE ECONOMIC TIMES 130302 India holds 33 % of the world wheat stocks, 25 % of rice BUSINESS LINE 010402, 220402) The Global stocks of wheat are pegged at 152 MT, while the rice stocks are estimated to be 125.9 MT at Foodgrains rot According to the Ministry of Food & the beginning of the new marketing year 2002-03. Civil Supplies, over 250 000 tonnes of foodgrains have Wheat stocks held by the FCI are likely to be around 27 been damaged in FCI godowns due to inefficient MT by March 31 2002 (expected to be 47 MT by May procurement last year. The govt. has taken action end). Rice stock is expected to reach 30 MT by Oct. against 82 officials of FCI in this regard. (RASHTRIYA  The food subsidy for 2002-03 is billed at Rs. 212.00 SAHARA 020402) B, up from Rs. 136.75 B budgeted for 2001-02 and Rs. PDS Price for APL cut again The Union cabinet 176.12 B as per revised estimates. Removal of announced reduction in the issue price for foodgrains restrictions on new mills processing capacity has also for APL families by Rs 1 per kg for three months to been proposed in the budget. (BUSINESS LINE 01/03/02, THE ECONOMIC TIMES-D 06/03/02) reduce the foodgrains stock. Wheat would now be available at Rs. 5.1 per kg and rice at Rs 7.3 per kg. The Foodgrains export Just a day after India became the scale of issue for the APL, the BPL and the Antyodaya seventh largest wheat exporter (5.025 MT exported households has been raised from 25 kg to 35 kg per between Nov.00 and March 02, the bulk quantity sold house per month. PDS price for the non-poor for animal feed abroad, though Union govt. consumers have now been reduced twice since July advertisements in newspapers on 110402 claimed that 2001. This two-stage reduction of cereal prices for the India is now removing hunger from the world) in the non-poor is final acknowledgement that the decision world, the govt. has removed quantitative restrictions taken in March 2000 to sharply increase these rates on the export of wheat, pulses and coarse grains to was a colossal mistake. That decision, meant to reduce boost exports. The Economic Survey 2001-02 had noted the food subsidy, actually ended up increasing the that area under pulses and coarse cereals has fallen in financial burden on the govt. (TRIBUNE 240302, 290302) comparison to 1980s. 4.2 MT wheat shipped out till

SANDRP 40 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Food insecure population in south Asia on the Rise Loan recovery in agriculture high According to National According to FAO, the number of food insecure people Institute of Bank Management, the loan recovery in in South Asia today is 300 M, up from 288 M in 1991. agriculture is 66.8%, much higher than about 50% in (BUSINESS STANDARD 290402) other sectors. (BUSINESS STANDARD 230402)

States oppose Central Plan Punjab, Haryana, Kerala and New scheme for East India The centre has launched a AP have expressed strong opposition to the proposed new scheme "On-Farm Water Management for decentralised procurement system on grounds of increasing crop production in East India" in all the bottlenecks in implementation. These states feel that districts of Arunachal Pradesh, Assam, Bihar, preset system of centralised procurement would work Chhattisgarh, Jharkhand, Manipur, Mizoram and Orissa well with some modifications and a proper network of besides 35 districts of East Uttar Pradesh and nine roads and market places should precede a decendralised districts of W Bengal. An amount of Rs 150 M has been system. Otherwise farmers would continue to resort to released during 2001-02 to NABARD as the share of distress sales and only traders would benefit. The the govt.’s assistance under the scheme. An allocation procurement of rice from AP by FCI has gone up from of Rs 115 M has been proposed during 2002-03. (PIB 1.081 MT in 1971 to 7.1 MT in 2001-02. Decentralised PR 120402) procurement of foodgrains is now implemented in UP, MP and West Bengal. UP has threatened to withdraw MSP for Rabi crops The Central Cabinet hiked the from the scheme due to the problems encountered in its minimum support price for wheat by Rs 10 per quintal implementation. (THE TRIBUNE 240302, THE HINDU to Rs 620. The Cabinet also hiked MSP for rapeseed 100302) and mustard, safflower, gram and masur by Rs 100 per quintal each. The Commission for Agricultural Cost and AGRICULTURE Price had recommended a freeze on MSP for wheat in order to encourage farmers to go for corp NO to Corporate Farming: Agriculture Minister Union diversification. (THE INDIAN EXPRESS-D 030402) Agriculture Minister has ruled out introduction of corporate farming. “We cannot allow corporate farming Chhatisgarh attempt at crop diversification To promote because it will lead to displacement of millions of crop diversification, the state govt. has announced that farmers in the country,” he said. He said subsidies given free irrigation water given to any farmer willing to grow to other sector far exceed those given to the agriculture crop other than paddy and no water would be given to sector. (BUSINESS LINE 210402) farmers growing paddy this summer and if paddy is found to be grown using canal irrigation, such farmers Foodgrains Production The Agriculture ministry has put would be charged double water rates. (THE HINDU the likely foodgrains production at 211.17 MT in 2001- 040402) 02 compared to 195.92 MT in 2000-01. Sugarcane production is likely to be 289.4 MT in 2001-02 SUGAR compared to 299.2 MT in 2000-01. (BUSINESS STANDARD 060402) Sugar Exports (= water exports) In 2001-02, by Oct. 2001 India has exported 1.042 MT of sugar valured at Cut in farm sector outlay The Parliamentary Standing Rs 12.36 B compared to export of 0.331 MT in the Committee on Agriculture has recommended that the previous year valued at Rs 4.28 B. (TRIBUNE 110402) budgetary allocation for the farm sector not be cut. In the 30th report, the committee has observed that, Bihar Sugar Industry In 1942-3, Bihar had 32 sugar “continuously for years together, less than 50 % of the units out of a total of 140 units across the country. Now required amount is being allocated by the Planning Bihar has 10 units out of country’s total of 495 units. Commission.” The committee said the Dept of Then Bihar contributed 40% of national sugar Agriculture had sought an outlay of Rs 182.538 B for production, compared to 2% now. Some of the reasons the 9th five year plan, but was provided Rs 78.137 B, for the decline include water logging; poor transport, only 43 % of the demand. Dring the 10th plan, as against poor irrigation & poor power supply. (BUSINESS LINE a demand of Rs 250 B, the sector was given Rs 130 B, 150402) 52.8 % of the demand. Against the projected demand of Sugar Decontrol The Sugar industry has welcomed the Rs 51.64 B for 2002-03, the department was given Rs Union Finance Minister’s move cutting the levy 21.67 B, only 41.96 % of the demand. (THE HINDU-D 280402) obligation of the sugar industry as a step towards total decontrol. With mounting sugar stocks, supply being higher than demand & low prices in international

SANDRP 41 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES market, sugar industry is facing a challenge. (BUSINESS Maharashtra, Andhra Pradesh, Haryana and Karnataka. LINE 010302) (Prayas study; FRONTLINE 290302)  Out of Rs 1127 B worth of electricity produced in India to stay in global sugar club The Union Cabinet the country, only 55% that is electricity worth Rs 620 B decided that India should continue to be a member of is billed and only 41% that is Rs 460 B is collected, the International Sugar Agreement 1992, which has says Union Power Minister. (THE ECONOMIC TIMES been extended till 2003. Being the world’s largest 260402) producer and consumer of sugar, India intends to increase its share in the global trade. India has been a Posh colonies at the top in power theft The DVB data member of ISA since its inception in 1937, first as shows that the volume of power theft is much more in importer till 1942 & as exporter since 1958. (BUSINESS posh colonies than in the lower and middle class STANDARD 030402) colonies. DVB’s Enforcement Wing says the power theft in one posh house in south Delhi equals that in 500 Maharashtra sugar coops to set new trend Some 30 houses in resettlement colonies. In March this year, out Sugar Cooperatives (20% of total units) in Maharashtra of 546 detected cases of power theft, 109 were from the are now moving towards reducing the proportion of posh colonies where the percentage of total power theft sugar they produce and instead, opting for conversion came to around 53 %. In Sept 2001, residents of posh into ethanol to a substantial extent. Ethanol is currently colonies were involved in 75 % of the total power theft being touted as the best means to reduce import bill of caught. (THE HINDUSTAN TIMES-D 270302, 200402) petroleum products. (THE HINDU-D 230402) Incentive for efficiency In the new conditions under India, Brazil in Technology sharing pact for Ethanol Memorandum of Agreement that Union Power Minister India signed an MoU with Brazil for sharing the know- wants to sign with the reforming states, if the SEB is how to blend ethanol with petrol or diesel. According to able to improve its revenue generation without adding the Union Minister for Petroleum, India has started 5 % to capacity or tariff hikes, it will be eligible for a blending of ethanol in petrol in phases, beginning with matching grant from the Centre. (THE ECONOMIC eight sugarcane growing states in the first phase. In the TIMES 110302) second phase, blended petrol would be made available throughout the country. In the third phase, ethanol Bhakra Power Capacity Up Renovation has led to content in petrol would be increased to 10 %. (THE increase in capacity of Bhakhra Right Bank Power HINDUSTAN TIMES-D 090402) House from 660 MW to 785 MW. The original plant with 600 (120 X 6) MW was upgraded to 660 MW in POWER OPTIONS 1980 through the help of the original Russian firm. The The great power robbery According to a study done by cost of the renovation was Rs 9.2 B, i.e. Rs 7 M per Prayas Energy Group large scale power theft is rampant mw. The work on upgradation of the five units of Left among industrial consumers who avail of high tension Bank Power House, remaining one unit of Ganguwal and extra high tension supply. The study suggests that and Kotla Power Houses and two units at Pong Dam, the ambitious objective of 100 % metering should be would be taken up during the 10th five year plan to add deferred in favour of more pragmatic, cost effective and 108 MW capacity. manageable solution, namely metering HT/EHT  R&M Potential of 20 000 MW According to Union consumers immediately. Yet policy makers tutored by Power Minister, through R&M of existing power their reform consultants, would have us believe that projects, an additional capacity of 20 000 MW can be theft occurs only in rural areas and among urban slum added at a cost of Rs 100-120 B. MD of Powerplant dwellers. In order to target thefts, they have been Performance Improvement Ltd, a 50:50 joint venture zealously advising the SEB/utilities to undertake “Total promoted by BHEL and Siemens AG says, “There is 20 Energy Audit” and install 100 % metering – a virtual 000 MW of installed capacity out there locked up in impossibility in such a vast country with several million aged and rundown plans which are delivering anywhere connections. The study based on data submitted by the from zero to 50% of their nameplate capacity. Much of utilities to their respective regulatory commission, this capacity can be brought back to a PLF of 75% or shows that the industries using HT and EHT lines are above through a process of rehabilitation. There are involved in large-scale thefts. Even a small percentage many advantages of such renewal. Execution would be of losses in HT/EHT supply can mean a substantial loss quicker. Investment needed was just Rs 10 to 15 M per of revenue to the utilities, owing to the large quantum MW as compared to Rs 40-60 M for new plants, and of power consumed by industry. Prayas studied states of social and environmental costs would be lower. That this is possible is shown in the renewal results of

SANDRP 42 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Durgapur and Kothangundem plant. (TRIBUNE 170302, generated by the sugar factories with Bagasse as the THE HINDU 250402) feedstock. Till now only around 212 MW generation capacity has been installed and 245 MW capacity is Kerala Plan Panel for Small Hydro The State Planning under implementation. (BUSINESS LINE 22/03/02) Board has called for a special priority for tapping the state’s small hydel sources. (BUSINESS LINE 080302) Energy saving potential India’s energy saving potential is estimated at around 30 000 MW of which 15 000 CFL Potential in Kerala A study done by the Agency for MW is in the industrial sector alone. (BUSINESS LINE Non-conventional Energy and Rural Technology 230402) reveals that Compact Fluorescent Lamps can be an important component of load side management to Bhoruka plans Bhoruka Power Corp, a leading small substantially bring down peak hour power requirement. hydro developer plans to invest Rs 3 B in the next 30 If half a million (out of total of 4.5 M) households in months to increase its installed capacity from present 33 Kerala replace 5 bulbs of 100 W by CFLs of 18 W each, MW and 22 MW under implementation to 100 MW. It then the annual saving in energy would be 292 MU and plans to access debt fund to the tune of Rs 2.1 B from would be equivalent to a generating capacity of 73 MW. IREDA, IDBI and IDFC. (INDIAN EXPRESS 110302) The recently approved state renewable energy policy has made the use of CFLs mandatory in new hospitals, Small power projects 201 sites for small HEPs with hotels, govt. offices and offices of PSUs. (BUSINESS combined installed capacity of 1207.27 MW have been LINE 010402) identified in J&K. As per the Ministry of Non- Conventional Energy Sources, about 4096 sites have Policy on renewables The Minister of state for non- been identified so far across the country for generating conventional sources of energy announced that a draft 10171 MW. The broad estimates of potential available national renewable energy policy is at the final stage of from SHP up to 25 MW has been assessed at 15 000 formulation and will be announced shortly. He also MW. In 1989, when the subject of small hydro up to 3 stressed the need for incorporating a provision on the MW capacity was transferred to MNES, the total electricity regulation act for making it compulsory to installed capacity from SHP projects was 63 MW which produce minimum 10% of the total generation capacity has now risen to 219 MW. The MNES has set goal of from renewable energy sources. He has urged the 2000 MW capacity addition from SHP by 2012. finance minister to retain 100% depreciation enjoyed by (DAILY EXCELSIOR 200302) the renewable energy sector and not bring it down to 60% as proposed in the budget. (BUSINESS LINE Wind-diesel project in Bengal The World’s third and 230302) Asia’s first wind-diesel hybrid project has been inaugurated in Sagar Islands in the Sundarnabs of W Gharat potential Some half a million multi purpose Bengal. The Rs 60 M project is being implemented by gharat (micro hydro) are on the verge of destruction for the W Bengal Renewable Energy Development Agency lack of govt. attention. These can be used to produce in two phases with assistance from the Canadian govt., some 2500 MW of power at the rate of 5 KW per which has given around Rs 15 M of the Rs 20 M cost of gharat. The govt. seems to have no definite policy about the first phase. The remaining funding is coming from sustaining and upgrading the gharats. By proper repair the MNES and the State govt. The project has an initial and upgradation, the gharats can also add about 20% to capacity of 175x2 kWh using the diesel mode and 110 the irrigated area in Uttaranchal. (RASHTRIYA SAHARA kWh of wind power capacity. (BUSINESS LINE 040402) 190302)  Call to keep watermills running Dr Anil Joshi of Plan to add 6 000 MW wind power India plans to add 6 Jalandolan has expressed shock over the Uttaranchal 000 MW to its wind power capacity over the next govt.’s move to demolish some watermills and cover decade. With the present level of wind power installed the canals in a bid to widen the roads in Dehradun. capacity of over 1 500 MW, India is among the top five There were about 70 000 watermills in the state out of countries in the world. The Minister of State said that which only half are functional and there is need to already over 3 400 MW installed capacity is based on systematically rejuvenate, repair and modernize to turn renewable energy sources and India has plans for the watermills into micro hydel stations. (THE HINDU capacity addition of 10 000 MW from renewables by 270402) the year 2012. India ranks first in biomass gasification. In the field of solar photovoltaic, India ranks fifth and Cogeneration potential As per the draft Sugar in biogas application India ranks second in the world. Development Fund (amendment) bill 2002 placed in (PIB PR 020402) Loksabha, an estimated 3500 MW power can be

SANDRP 43 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES REC, IDBI to fund small power projects REC and the of target of 40 245.2 MW) was achieved in just IDBI are putting together a scheme to finance small concluded ninth plan. While state sector has achieved power projects. The plan envisages funding power 84% of the target and added 9064 MW, central sector plants of about 25 MW, each of which would cost about has achieved 40% of target and private sector 29%. Rs 1B to 1.2 B for completion. IDBI has alone MoP claims that the better performance in the state cancelled sanctions to about 15 large power projects for sector was largely on account of the accelerated failure to achieve financial closure. (BUSINESS LINE-D generation and supply programme, under which 5144 160302) MW (out of total of 5219 MW in all sectors, the remaining 75 MW being in the central sector) was POWER added in the state sector during the ninth plan. (INDIAN Many questions as BSES chief becomes Union Power EXPRESS 110402, THE ECONOMIC TIMES 230402, Secretary “The issue is not one of bringing a public or 280402, BUSINESS LINE 290402) private sector man at the helm. It is a question of having Draft Power Tariff policy The tariff policy drafted by the a power secretary coming from a group which has MoP and to be finalised in a month, says mobilisation serious power ambitions and which could create conflict of resources for fresh investments should be a factor of interests. Everybody knows that BSES is part of guiding the tariff setting process. The draft policy has Reliance Group”, says an economist. Today, BSES is a noted that regulators need to determine operational fully integrated power juggernaut involved in the norms and permissible costs while setting tariffs and generation, transmission and distribution of electricity. these should be uniform for the same category of What’s more, it is at the forefront of any bid, which projects. Central utilities like NTPC could derive spells power. (BUSINESS STANDARD 130402) mileage from the clause because the main argument Tenth Plan Targets According to a piece penned by against the CERC ABT tariff was that their capacity Union Power Minister Suresh Prabhu, 46 939 MW addition programme would be affected if the CERC capacity is to be added during the Tenth Five year plan order were implemented. NTPC has also been objecting (2002-07) and 61 000 MW in the eleventh plan. In the to differential treatment to its plants under the ABT tenth plan, 28 000 MW would be in thermal sector (12 order. Other stipulations in the draft policy will help 000 MW of this in central sector, out of which NTPC CERC in encouraging efficiency. The draft says the share to be 9 000 MW), 1330 MW from Nuclear plants principles of the common minimum tariff to cover 50 % and the rest from hydropower. In Prabhu’s scheme of of the cost of supply in three years need to be things, unfortunately, energy conservation efforts, implemented at the earliest. Tariff based bidding should demand side management and setting up a National grid be the route for the development of new power projects figure much lower than huge capacity addition in the private sector. A higher rate of return in the initial programs. Contrary to Power Minister’s earlier transition period for private distribution companies to statements that T&D sector should get at least same (it encourage tackling of distribution losses is justified. should be higher if we consider the backlog of Where tariffs are not determined through a competitive investment requirement in T&D sector even for existing process, these will have to be determined by regulatory generation capacity) fund allocation as generation commissions as provided for in the ERC act 1998. sector, the envisaged allocation for T&D is much lower. (BUSINESS STANDARD-D 160402) The tenth plan working group has estimated that the Fixing power tariff is policy matter The Supreme Court overall fund requirement for power sector would be Rs has ruled, “Fixing electricity tariff (by the regulatory 5.66 T, out of which Rs 3.5 T would be for capacity commission) and providing for cross subsidy is addition, Rs 1.5 T for T&D, Rs 0.43 T for rural essentially a matter of policy and normally a court electrification and Rs 0.12 T for renovation and would refrain from interfering with a policy decision modernisation. unless the power exercised is arbitrary or ex facie bad in  Power Secretary R V Shahi says, “In fact, in the last law.” The Bench upheld the decision of the AP ERC in 3 years, the MoP has acknowledged that reforms on the fixing electricity tariff for the year 2000-01. (THE distribution side would have been more fruitful than HINDU 130302) laying over emphasis on the generation side”. But where is the reflection of this admission in financial Captive Generation to be Taxed in AP Andhra Pradesh allocation? CM hinted at a move to levy duty and wheeling charges  Huge short falls in Ninth Plan targets While 16422.6 on captive generation plants in AP (1800 MW) as a MW (53.77% of target of 30 538 MW) capacity move to lure them back to grid. As a direct result, five addition was achieved in eighth plan, 20 525 MW (51% of the six ferro alloy units in the state are facing closure

SANDRP 44 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES as they find the new duty unbearable. The policy goes Rs 30.83 B of its dues recovered through the against the MoP’s Captive Power Policy circulated in securitisation scheme of the SEBs. July 2001.  DVC plans Damodar Valley Corporation is planning  At least six states (Delhi, Karnataka, Punjab, Tamil to convert its power stations in to separate profit centres Nadu, Kerala and Bihar) have responded favorably to and bring power generation and distribution under two centre’s proposal to liberalise captive power capacities. strategic business units. It has undertaken an ambitious Captive power installed capacity has been rising at 8% plan to add 6210 MW thermal capacity at an investment per annum over the last two years. MP and Maharashtra of Rs 260 B during the 10th plan. The ten outdated are most reluctant to liberalise captive power plants. generating units out of a total of 17 will be renovated (BUSINESS LINE 260302, THE HINDU 020402, INDIAN and mordenised at an estimated cost of Rs 13.64 B EXPRESS & BUSINESS STANDARD 110402) adding 1092 MW to the DVC’s present generation of 1100-1200 MW. (THE HINDU-D 190402 BUSINESS BOT projects in power generation in Kerala The KSEB LINE-D 110402) has approved in principle BOT policy mainly for small hydel projects and captive power plants under power Delhi Cabinet rejects bids for DVB discoms The Delhi purchase agreement. (PTI 300302) Cabinet rejected the bids submitted for the DVB’s distribution companies by Tata Power and BSES. The CCEA clears one time settlement of power dues The govt. has said that the bids cannot be accepted in its Cabinet Committee on Economic Affairs has cleared present form as the targets for T&D loss reduction are the MoP’s proposal on one time settlement scheme of too low and bids have riders and conditionalities, which the Rs 435 B outstanding of SEBs to Central PSUs as should not have been there. The govt. has authorised the per the recommendations of the Ahluwalia committee. core committee of officers to “explore all other It also agreed to extend the cut-off date for tabulation of options”. The Chief Minister accused the companies of dues to Sept 30, 2001 and waive 60% of interest forming a cartel in the bidding process. Delhi Power amount of Rs 157.46 B. The scheme, which envisages Minister slammed the “black mailing tactics” of the two the issue of tax-free bonds through RBI at an interest bidding companies. One of the conditions imposed by rate of 8.5 %, will mean that SEBs will have to function the bidders was they should get guaranteed 16 % return on commercial lines. So far ten states have come for the next 30 years. Delhiites are likely to pay 8-10% forward for implementing the scheme. Where fresh higher power tariffs once DVB is privatised. defaults in payment exceed 90 days from the date of  A petition has been filed by an IAS officer in Delhi billing, the Centre would recover those dues by High Court challenging the DVB privatisation move. adjusting them against transfers due to the states from  At a latter date, the privatisation move was through the Centre. (BUSINESS STANDARD-D 250302, 220402 after some fresh negotiations. How this could be THE HINDUSTAN TIMES-D & ECONOMIC TIMES possible after the serious charges leveled as mentioned 250302) above is a mystery. (THE TIMES OF INDIA 110302 Inadequate grid causes power crisis in Delhi The Power INDIAN EXPRESS 060402 THE HINDU & THE Grid Corporation in its recent report has said that the ECONOMIC TIMES 120402) city was having more than 1 000 MW of additional No tax on inter-state sale of power The Supreme Court power available, but the DVB’s existing capacity was has held that power produced in one state and unable to take it. At times the DVB resorts to power distributed to other states could not be taxed by the state cuts even when it has enough power, because of the where it was generated. (BUSINESS STANDARD-D poor infrastructure. On April 25, on the one hand, DVB 240402) had to ask its Badarpur TPS to reduce production from 650 MW to 507 MW (and similarly for other power MoP sets up IT thrust group The MoP has created an IT plants) as Board was unable to distribute the available technology group to look at the possibilities of using IT power and frequency had shot upto 51.07. (THE in boosting efficiency in the power sector. The potential HINDU-D 01/04/02, RASHTRIYA SAHARA 260402) of IT in the power sector is estimated at $ 40 B over the next ten years. (BUSINESS STANDARD 220402) DVC dues The DVC’s dues amounted to Rs 38.36 B, with the Jharkhand SEB being the biggest defaulter Loss due to low quality of coal According to a report by with unpaid bills of Rs 12.54 B. The total amount CAG, due to supply of poor quality of coal, Orissa receivable from the PSUs was Rs 1.75 B. CESC with Power Generation Corp has suffered loss of Rs 478.2 an outstanding of Rs 790 M was the largest defaulter in M. The quality test has not been done by the OPGC the private sector. Now the DVC is hopeful of getting before using of coal. (RASHTRIYA SAHARA 210402)

SANDRP 45 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES Court orders CAG investigation in equipment purchase No reduction in losses in Rajasthan Since the RSEB was The Delhi High Court has ordered CAG to investigate unbundled in July 2000, the companies have not been the purchase of equipment for the controversial able to reduce their losses significantly, despite the Timarpur Power Plant, which was to produce electricity steep hike in power tariff in April 2001. (THE from the municipal waste. The equipment has been ECONOMIC TIMES 190402) purchased from Denmark based company at the cost of Rs 200 M in 1987. Till date the electricity generation POWER FINANCE NEWS could not been started, while Rs 20 M has been spent in Stalled IPPs Of the 40 IPPs that were expected to come the name of maintenance. India lost a case against the up, 31 projects with a cumulative capacity of 18 715 Danish company in the World Court. (RASHTRIYA MW are stuck with no likelihood of achieving financial SAHARA 260402) closure according to Crisis Management Group of MoP. Exporters to get Power Subsidy The new Exim policy The rest of 9 projects (6 of them from AP) with allows exporters to set up captive power plants and in capacity of 4 287 MW have reasonable chance of the process claim rebate on fuel costs so that energy achieving financial closure over the next year. input cost of exported items is comparable to (BUSINESS STANDARD 150302) international levels. (BUSINESS STANDARD 010402) Union Budget impacts The allocation under APDP in the N Power too expensive Electricity Boards are finding the Union budget proposed for 2002-03 has been increased power from the nuclear power stations too expensive from Rs 15 B in 2001-02 to Rs 35 B and the scheme has and are not keen on purchasing power from NPC. CMD been renamed as Accelerated Power Development and of NPC agreed there was a problem. (THE HINDU Reform Programme. The following day, the shares of 040402) electrical equipment manufacturing companies like Crompton Greaves, Siemens, BHEL and ABB surged UP Power Crisis The power blackout faced by UP in the ahead in Mumbai Stock Exchange. Two Mumbai based first week of April is not due to non-availability of power utilities BSES and Tata Power are expected to power, but due to financial sickness of SEB. (THE gain significantly from the Budget 2002. “We will HINDU 040402) definitely benefit from this,” said R V Shahi, CMD of BSES. (Shahi, incidentally, became Union Power Orissa to supply 250 MW to Karnataka Gridco is to enter Secretary a few days later. Reliance Industries hold into agreement with KPTCL for supply of 250 MW of 37% (reached that level just a week before Shahi took power at the rate of Rs. 2.35 at Jaipur (Orissa) busbar. over as Power Secretary) stake in BSES and maintains The existing power transmission facility has capacity to that BSES spearheads all its interest in power sector.) wheel only about 150 MW from eastern grid to  APDP disbursement only 28% Disbursement under southern grid. (BUSINESS LINE 160402) APDP, touted as major reform initiated under power  Orissa stops power supply to AP Orissa had been ministry, for 2001-02 has been just Rs 4.25 B from the supplying 150 MW of power to AP since seven years. provision of Rs 15 B in the budget estimates. (THE It has now been stopped as the agreement has been ECONOMIC TIMES 020302, BUSINESS STANDARD terminated. NTPC has reduced power supply to Orissa 020302, 060302, 180402) due to mounting dues. (RASHTRIYA SAHARA 170402) FIs target Spectrum IPP Financial Institutions led by Orissa Reforms fails? Power sector reform that began IDBI are moving in to change the management of under the World Bank loan six years ago with much Spectrum Power Generation in AP, India’s first fast publicity has not helped greater recovery of bills. track IPP to go on stream, as empowered by a Supreme Billing remains at 54% and collection 77% of the Court judgement. (THE ECONOMIC TIMES 220302) amount billed.  BSES units in mess The financial institutes ADB loans for Gujarat The MoP said that the govt. has including UTI, GIC, LIC and IDBI, which together received two loans from the ADB for its power sector hold 36% equity in BSES, are worried that the three reforms programme in Gujarat. The policy programme BSES distribution units in Orissa are in mess and are loan for reforms and restructuring in the power sector not preparing balance sheets. An IDFC study in Dec. totalling $ 150 M will be released by this year-end, 2001 says that the blame squarely lies with BSES as while the project loan totalling $ 200 M will be come due diligence was not done. (THE ECONOMIC TIMES by mid-2005. (DAILY EXCELSIOR 250402) 200402, THE HINDUSTAN TIMES 290402) ADB loan for Kerala The ADB is to provide a loan of $ 500 M in two installments. The first installment of the

SANDRP 46 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES 300 M for fiscal reforms would be disbursed this year. ENVIRONMENT The disbursement of $ 200 M for power sector reforms was slated for the next year. (THE HINDU 300402) Law Commission to study Environment Laws Following the Supreme Court request in Dec. 2000, the Law Power projects in MP The MPSEB will spend about Rs Commission will be reviewing the whole range of 31 B on strengthening the T&D system during the 10th environmental legislation in the country with a view to five-year plan. The board will get financial assistance consolidate and codify. (THE TIMES OF INDIA 220302) from ADB and the NABARD. The PFC has sanctioned Rs 14 B loan for the 500 MW 5th unit of the proposed AP govt. to relax Environment laws In an attempt to Sanjay Gandhi Thermal Power House in Sahdol district. improve the investment climate, PwC has suggested The total cost of the unit has been estimated at Rs 20 B. major changes in the EPA 1986. While the Act provides The ADB is likely to provide Rs 920 M aid to the for multiple and surprise inspections, the govt. plans to MPSEB during 2002-05. (BUSINESS LINE 060302 introduce a system of common inspections under all BUSINESS STANDARD 220302) pollution laws only once a year and surprise inspections in exceptional cases. (BUSINESS STANDARD 220302) Projects in North East Union Power Minister has launched APDP in Mizoram and Nagaland. He said that HP assembly for change in forest act The Himachal three circles viz., Guwahati, Jorhat and Dibrugarh have Assembly unanimously adopted a resolution urging the been brought under the APDP. He laid the foundation centre to amend the Indian Forest Conservation Act to stone of the Rs 17.9 B gas-based power project at empower the state govt. to grant permission to use Monarchak in West Tripura District. (ASSAM TRIBUNE forest land for development activities. (TRIBUNE 030302, 040302 & SENTINEL 030302) 010302)

WE AWAIT YOUR RESPONSES I liked the piece on Uchangi Dam (Update 3). It is important to highlight such experiences as examples of positive approaches to resolving conflicts arising from water projects. Good luck. Prof. A Vaidyanathan, Madras Institute for Development Studies, Chennai Thank you very much for sending us issues on Update on Dams, Options and Related issues. We are finding this informative and we wish to continue to receive for the benefits of our students and faculty. Prof Arun Kumar, Head, Alternate Hydro Energy Centre, IIT, Roorkee Update is an excellent publication fully packed with information required in our conservation movement. I wish you all the success. VS Vijayan, Director, Salim Ali Centre for Ornithology and Natural History, Mumbai The UPDATE is quite appropriate, and it comes with a ‘perspective’, which I feel is very important. Once you go over each issue, definitely one would feel that one is learning the 'actuals' since at one place and at one go, it gives information from a broad spectrum of sources. Importantly, we get a national picture, which is missing, in most of the publications.

However, I feel the layout, the colour, and other aspects need to be made more attractive. The Update has to lie on the top of the pile. You can also add your viewpoint or other viewpoint on current issues. We need a short essay or comment on water sector in India. I liked the last pages in both the issues, about the World Bank projects and data on projects. D Narasimha Reddy, Executive Director, Centre for Resource Education, Hyderabad

SANDRP 47 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES SPECIAL REPORT KARNATAKA’S BLUFF: THE MAHADAYI DAMS On Fool’s Day, the National Water Resources Council chaired by the Prime Minister adopted the NWP 2002. As far as Karnataka is concerned, the PM’s speech could not be more perfectly timed! For years, the State’s decision makers have fooled around with its natural resources, particularly its rivers. This time it’s a game not everyone wants to play. Pursued with increasing intensity since 1998, Karnataka’s latest obsession is the resurrection of a project dreamt up in the early eighties - the Mahadayi Diversion Project, in Belgaum district of North Karnataka. However neighbouring Goa has opposed the plan and with good reason. Originating in a profusion of over 30 streams in the jungles of the Western Ghats at Degaon village of Belgaum, the Mahadayi runs a total length of over 80 kms with a catchment of 2008 sq kms of which 445 sq kms is within Karnataka. It crosses rainforests and the Sahyadri crestline to enter Goa as the celebrated Mandovi – Goa’s lifeline and main inland waterway, and finally meets the Arabian Sea at Panjim.

Three Goa-Karnataka meetings with the Central Water Commission to facilitate a decision on the project have ended in a stalemate each time. The latest meeting with the CWC held on the 27 March 2002 resulted in an adjournment till June. The rationale for the Mahadayi Diversion Scheme is to salvage from blunder Karnataka’s the Malaprabha Dam at Naveelteerth (there are more dams down stream!) on the Malaprabha River – an east flowing tributary of the River Krishna. This dam was designed to meet 90% drinking water needs and 10% irrigation needs. Now, this proportion has been reversed with the dam catering largely to water guzzling sugarcane instead. The fact that the Malaprabha Dam’s capacity was an over estimation by a whooping 36%, has been exposed. It has a capacity of 47 TMC but receives only 30 TMC and has filled to capacity only 3 times in the last 25 years! The absurdity is compounded by the fact that it looses 7.8 TMC (26%) of water from leakages for close to a decade now as the Minister himself revealed to the press! The Minister’s fantasy project on the Mahadayi involves the construction of six diversion dams with a total length of 1.6 km, 6.4 kms of tunnels through forested ridges and 3.5 km of open channels. Consolidated figures of areas lost to submergence for the entire project: 1720 Ha of forestland, with an additional 400 Ha of agricultural land. Aside from destroying the entire Mahadayi and the ecological wealth around it, just what this ‘Malaprabha Cover- up Scheme’ foretells for Goa’s Mandovi is anybody’s guess.

Ironically this project has been sited in the finest stretch of the Western Ghats. There exists a plethora of communication between the Ministry of Environment and Forests at the Centre and the Karnataka State Govt. on the need to protect exactly this region. The final outcome of this exchange and dialogue was a clear directive from the Centre, followed by a decision of top Forest and Wildlife officials of the State to declare the region as the Bhimgad Wildlife Sanctuary. The Mahadayi Valley is the habitat of the Wroughton’s Freetailed Bat recorded nowhere else in the world but in the Barapedi cave of Talewadi a totally evolved grassland ecosystem. This species is listed in the IUCN Red List of Critically Endangered Species. The Theobald’s Tomb Bat is another species found 2 kms away at Krishnapur, which is its third only home in India. Such close proximity of species’ sites is an indication of the rich biodiversity of Mahadayi valley. The Mahadayi Dams will be definite violations of the highest environmental and wildlife laws of the country. Specifically, neither Forest Clearance nor environmental clearances have been obtained. The affected Panchayats have recorded their opposition to this project. Information on the project is well - concealed. Mandatory Public hearings have not been conducted, and NEERI’s Environment Impact Assessment Report is nowhere to be found. Lamentably the Karnataka Irrigation Minister continues to his claim of having ‘obtained’ all the required environmental clearances. Leading environmental organisations including the WWF, IUCN, BNHS, etc have strongly advocated legal protection for this region. In Sept. 2000, a Committee appointed by the MoEF identified an extensive list of criterion to declare regions ‘Ecologically Sensitive Areas’ as per provisions of the Environment (Protection) Act. The contiguous

SANDRP 48 MAY 2002 UPDATE ON DAMS, OPTIONS AND RELATED ISSUES forests of this region fulfill at least ten of the thirteen criteria when it takes fulfillment of just one criterion to merit such declaration! Meanwhile the NWP2002 is being criticized extensively. What about the longstanding protests rising from the forests and villages like Nerse, Ashoknagar, the latter being victims of double displacement – first being oustees of the Hidkal Dam. The message to the Centre is that as far as the serious action for safeguarding the country’s life giving ecological resources is concerned, every day is Fool’s Day for the merry State of Karnataka.

About the Authors: Nyla Coelho and Aarthi Sridhar are members of the Sahyadri Ecologically Sensitive Area (SESA) Group

SANDRP 49 MAY 2002

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