Malaysia –Your Business Partner 2 MEDC Governing Board from the President’S Desk MEDC President : He Nation Is Waiting to Know Cdr

FOR BUSINESS EXECUTIVES VOL. XLV NO.: 8 August 2016 60 Pages ` 50

Malaysia –Your Business Partner 2 MEDC Governing Board From the President’s Desk MEDC President : he nation is waiting to know Cdr. Dipak Naik - President & CEO Naik Environment Research Institute Ltd. the fate of the GST bill in the (NERIL) Rajyasabha. The moment GST MEDC Vice Presidents T becomes a reality the ease of doing yy Cdr. Anil Save - Mg. Director business will also become a reality. That Atra Pharmaceuticals Pvt. Ltd. yy Mrs. Meenal Mohadikar - CEO in turn will surely contribute to well being Anand Trade Development Service of the people. yy Mr. Ravi Boratkar - Jt. Mg. Director In the last few decades nations and MM Activ Sci-Tech Coomunications states are measuring their performance MEDC Immediate Past-Presidents : yy Dr. Vithal V. Kamat - Chairman by economic growth. GDP has become The Kamat Group of Hotels the performance indicator for the party yy Mr. Nandkishor Kagliwal - Chairman in power and the heads of governments Nath Group are increasingly behaving like corporate CEOs. Some of them even take Special Invitee : yy Mr. Chandrakant Sadadekar - pride in saying so. I think there is a need to re-examine this approach. If Chairman governments are to be assessed for governance the key result area must Sadadekar Group be spread across the full spectrum of governance. What then should be the yardsticks of measurements of performance of the government? Inequality-adjusted Human Development Index (IHDI). According to the report, the IHDI is a “measure of the average level of human development of people in a society once inequality is taken into account.” These were devised and launched by Pakistani economist Mahbub ul Haq in 1990. Its purpose was,” to shift the focus of development economics from national income accounting to people-cantered policies”. A group of development economists including Paul Streeten, Frances Stewart, Gustav Ranis, Keith Griffin, Sudhir Anand, and Meghnad Desai was formed together with the Nobel laureate Amartya Sen, they worked on capabilities and functions that provided the underlying conceptual framework to produce the Human Development Reports, Haq was sure that a simple composite measure of MEDC Economic Digest Editorial Board human development was needed in order to convince the public, academics, Interim Chairman and politicians that they can and should evaluate development not only by Cdr. Dipak Naik economic advances but also improvements in human well-being. Editorial Advisor : Dr. Prakash Hebalkar, As of 2015 HDI for India stands at 0.609. The top thirty nations of the President, ProfiTech Mr. Ravi Buddhiraja, IAS(Retd.) world are all above 0.8. Within India we have states which stand at half the Mrs. Bhushana Karandikar national average. Maharashtra is at 0.572 at 7th position as against Kerala MEDC Response : with 0.790 on the top of the table. We have come a long way albeit a bit Mr. Suresh A. Ghorpade slowly, but it is about time that our economists, academicians, officials and Dy. Gen. Manager Ms. Ananya Prem Nath above all our politicians commit themselves to the improvement of district Executive (R&BD) wise HDI with missionary zeal. If the planning, execution and assessment Address : process is focused on HDI, the development will be headed in the right MEDC Research Centre, 3rd floor, Y.B. Chavan Centre, Nariman Point, direction. “Achhe Diin,” will then be ushered in for all. Mumbai - 400 021 Tel. : 2284 2206/09; Fax : 2284 6288; The state of Maharashtra has finally seen a good spell of rains in July. Last email : [email protected] two years of water scarcity and draught conditions have been an eye opener. www.medcindia.com Water is the most essential commodity that we cannot afford to squander

3 4 Maharashtra Economic Development Council, Monthly Economic Digest 34 July 2016 away. The cover story for this issue is water. I remember the words of the earstwhile secretary general of International Commission for Contents Irrigation Development, Mr. CD Thatte. He often said that we have  President Page 03 to manage our water resources in a manner that ensures providing  Special Feature “water for food, water for people and water for nature. All three are yy Malaysia - Your Business Partner 06 equally important. This issue brings forth some of the important - Mr. Mazlan Harun aspects of management of water in focus. I am pleased to announce yy Economic Impact of PM’s Visit to 10 Africa that MEDC is embarking upon a mission to focus attention of planners, businesses and industry towards “Blue Economy” We are  Water Management working towards arranging an international summit and an exhibition yy Sustainable Water Management : 12 on the subject of Blue Economy together with FICCI early next A Case Study for Maharashtra – Dr. P. Sekhar year. We live on the water planet. Our oceans seas and rivers hold yy India’s Water Resources and 16 a vast resource that can support the mankind forever. We need to Population : Need fo Interlinking focus towards these resources. That canvas is large. Shipping, In of Rivers and efficient Water Management land waterways, Fisheries, Tourism, Tidal and other alternate energy, - Dr. R.K. Sivanappan Mining, and much more, but more about it later. yy Namami Godavari 21 Month of August brings us our independence day. Malaysia also - Cdr. Dipak Naik celebrates their national day in end August. I must place on record yy Deliberate Efforts Required for 25 Water Conservation my sincere thanks to Mr. Mazlan Harun, the Consul and Trade - Dr. S.B. Goilkar Commissioner of Malaysia in Mumbai, for his prompt response in yy PCP Model for Nira - Deoghar 29 contributing a very informative article titled “Malaysia –Your Business Irrigation Project Partner”, for our economic digest. In another new step forward we yy Ensuring Efficient Use of Water 35 have introduced a few articles in Marathi for the first time in the yy Namami Chandrabhaga Abhiyan 37 history of the digest. “Udyogini” is reproduced courtesy “AMHI yy Global Trade & Investment 38 UDYOGINI”. Do read on..... Trends - Dr. Prakash Hebalkar yy India - Israel Agricultural 41 Relationship yy Empowering Infrastructure 44 Cdr. Dipak Naik Deveopment Machanism President - Mr. N. Vittal yy Safeguarding Borrowers ‘Interest’ 46 in Floating Rate Rigime - Mr. Narayanan Somayaji  Maha - Priyatan yy Tourism : A Major Growth Driver 49 for Konkan Development

 Women Entrepreneurs (GÐeesefieveer) yy Ms. Shaila Nevgi 54

yy Ms. Mansi Bidkar 57

 Entrepreneur of the Month yy Mr. Nandkishore Kagliwal 58 - Chairman, Nath Group

Maharashtra Economic Development Council, Monthly Economic Digest 5 34 July 2016 Special Feature

Malaysia –Your Business Partner

alaysia, a nation right in the infrastructure, innovative and sound Agreement which covers all aspect Mmiddle of the South East banking and financial systems and of trade and investment cooperation Asia region has achieved remarkable logistics to rival the world’s best and between the two countries. transformation from an agricultural provides a conducive environment In addition to the MICECA, there dependent economyto amodern for businesses to thrive.Currently are three other important economic industrialised trading nation with there are over 4,000 international initiatives which involve India and solid economic fundamentals companies from more than 50 Malaysia. The first is the ASEAN– andsupport from its harmonious as countries that have made Malaysia India Free Trade Area (AIFTA) well asvibrant multiracial society. their offshore base. which is a free trade agreement Over the years, Malaysia has attained Despite the current global economic among the ten member states of an enviable record recognised by uncertainty that brought mixed the Association of Southeast Asian international bodies such as ranked fortunes to economies in the region, Nations (ASEAN) and India. The 18th out of 189 economies in the Malaysia’s economy registered a free trade area came into effect on 1 World Bank Doing Business 2016 growth of 5percentin 2015, a better January 2010. Report and 19thposition in the annual than expected performance. Then there is the Regional IMD’s World Competitiveness Malaysia – India Relationship Comprehensive Economic Yearbook 2016. Partnership (RCEP), which is Malaysia and India relationship In term of trade, Malaysia is among currently being negotiated between has been strong and friendly since the top trading nations in the world. ASEAN and its FTA partners, the establishment of diplomatic In 2015, Malaysia was the: including among others, India, relationship in 1957. Being home China and Japan. The 16 countries • 24th Largest Trading Nation in toone of the largest Persons of in RCEP represent close to 50 per the world; Indian Origin (PIO) communities in cent of the world’s population and rd the world, the historical relationship • 23 Biggest Exporter; account for 30 per cent of the has assisted in expending the • 26th Biggest Importer; world’s GDP. Their combined share relationship to covermultifaceted th of global trade amounts to 29 per • 29 in World Commerce- cooperation such as in trade and cent and they attract 26 per cent of Services Trade; and investment; science and technology; th world FDI inflows. • 29 Biggest Exporter of education; human resource Services. development, tourism and culture. Last but not least, the Asian Infrastructure Investment Bank, Being one of the top trading The strong relationship was further which is championed by India. nations of the world, Malaysia’s elevated in 2011 with the signing of Malaysia is one of the 57 founding achievements have been largely the Malaysia-India Comprehensive members of the AIIB, and signed due to a systematic and determined Economic Cooperation Agreement the Articles of Agreement (AOA) approach to develop world-class (MICECA), a bilateral Free Trade for the entity on 21 August 2015.

6 Special Feature

Pics: Visit of the Hon. PM of India to Malaysia in 2015 Malaysia is the 51st signatory of the Investment and Services Sector energy, construction, metallurgical Articles. industries, services, power and India has emerged as one of the telecommunication. Malaysia – India Bilateral Trade main investment destinations for Malaysian companies. Based on the Some of the landmark projects with In general, India is a very important Department of Industrial Policy Malaysian companies involvement market and has always been and Promotion (DIPP), Ministry in India were the Mumbai Monorail; Malaysia’s biggest trading partner in of Commerce and Industry, India, power plant in Chhattisgarh; MCD South Asia. Malaysia-India bilateral Malaysia was the 24th biggest Civic Centre building in New Delhi; trade has increased by more than investor in India from April 2000 to Western Transport Corridor in three-fold for the past 10 years. March 2016 with investment worth Karnataka; Airports in New Delhi From 2004 to 2014, the average USD 807.6 million. However, this and Hyderabad; mixed development trade growth was 14.6 per cent. figure does not include substantial project in Hyderabad; and First With the implementation of the flow of Malaysian investment via City in Nagpur. Overall, Malaysian MICECA, bilateral trade has grown establishment in third countries companies have completed 81 tremendously by 17.97 per cent from which will bring Malaysia’s cumulative projects worth USD 3.8 billion and 2011 to 2014. investment in excess of USD 6 14 projects worth USD 1.61 billion Due to the tough external billion. Malaysian investments in are still under various stages of environment, Malaysia’s trade India are mainly in non-conventional construction in India with India experienced a slight declinefrom USD 13.84 billion in NCER : NORTHERN CORRIDOR ECONOMIC SDC : SABAH DEVELOPMENT CORRIDOR REGION (73,997 sq km) 2014 to USD 12 billion in 2015, (17,816 sq km)  Investment Opportunities :-  Investment Opportunities :- . Tourism, Logistics, Agriculture . Agriculture, Manufacturing, Tourism, & Manufacturing which positioned India as Malaysia’s Logistics and Education & Human capital 10th largest trading partner. ECER : EAST COAST ECONOMIC REGION (66,736 sq km) Malaysia’s exports to India in 2015  Investment Opportunities :- . Tourism, Oil, Gas & Petrochemical, is valued atUSD 8.12 billion with Manufacturing, Agriculture & Education major exports such as palm oil; electrical and electronic products; crude petroleum; chemicals and chemical products; metal products. SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY th ( 70,709sq km) India was Malaysia’s 7 biggest IRDA : ISKANDAR MALAYSIA ( 2,217 sq km)  Investment Opportunities :- . Oil-based products, Palm-oil, Marine Engineering,  Investment Opportunities :- Aluminium, Glass, Timber-based products, Steel, . Tourism, Education, Healthcare, Logistics, export destination and also currently Aquaculture & Tourism Creative industries & Financial advisory and the biggest importer of Malaysian consulting services palm oil.

7 Special Feature Meanwhile, India has been among Malaysian companies. There are Nitrile Gloves used in hospitals and Malaysia’s important source of abundant of business opportunities medical centres to condoms and foreign direct investments in the with Malaysia which could be the other disposable medical equipment manufacturing sector for many years. preferred source for a wide range to tyres and tubes used in assembly Cumulatively as at 2015, there are a of high quality items, becomes for major machinery are also actively total of 130 manufacturing projects technological partner and also being imported from Malaysia to with Indian interest, involving total provides expertise to India. India. investments of USD 1.39 billion, With growing consumer driven Other high potential products are have been approved in Malaysia. market in India, demands are electrical products; machinery; Indian investors are exceptionally rising significantly for Fast Moving automotive parts and accessories; strong in the pharmaceutical Consumer Goods (FMCG) such optical and scientific equipment; products, chemicals & chemical as daily body care products, fashion and its accessories; medical products, textiles and textile cosmetics, personal care, packaged equipment as well as range of green products, machinery and equipment food and others. Food products and environmentally products fabricated metal products and IT. such as confectionaries, chocolates, Apart from products, Malaysia’s Malaysia certainly welcome more biscuits, wafers and other snacks are services providers have also investments from India, particularly seeing a major boom in the Indian been widely sought in the areas in new growth areas with emerging market, with consumers calling for of construction, engineering, technologies, high technology, International quality products. architecture, education, healthcare, capital-intensive, high value-added, Another major import opportunity ICT, printing and publishing services as well as financial services. Today these companies operate around the world on a myriad of projects. Malaysia’s handiworks in infrastructure projects have been seen in many iconic projects in the Middle East, India Sub – continent and South East Asia especially buildings, infrastructure projects, stadiums, sports complexes, convention centres, residential developments, township developments and leisure facilities. Malaysian companies have worked on some landmark knowledge-based, skills-intensive, infrastructure projects such as which can be similarly observed is export-oriented and which provides BurjKhalifa in Dubai, Burj Al- Arab the furniture market. Malaysia is high income jobs. In short, quality in Dubai, Khalifa Stadium in Qatar, extremely strong in the furniture investments which will help to Bahrain International F1 Circuit, Yas section, especially attending to position Malaysia as a country that Marina F1 Circuit in Abu Dhabi, and specific needs for home use, can develop innovative and creative New Doha International Airport in office, commercial outlets, hotel products and services are needed Qatar. and hospitality and etc. Malaysia throughout the five economic has always been among the top Indian businesses are advised to corridors in Malaysia. ten global furniture exporters and contact the Malaysia External Moving Forward it is also well known as one of Trade Development Corporation the leading exporters of Medium (MATRADE), the National Indian companies should fully utilise Density Fibreboard (MDF) to India. Trade Promotion Agency of the the facilities under MICECA and establish smart partnership with Rubber products ranging from

8 Special Feature Government of Malaysia which is to source for suppliers of Malaysian Consulate General of Malaysia, responsible for assisting Malaysian products, services and technologies Trade Section (MATRADE) companies venture into the by furnishing accurate and reliable Suite 301, 3rd Floor, Naman Centre, international market and connect information as well as providing Block G, Bandra Kurla Complex, foreign buyers with Malaysian advice on doing business with Bandra (E), Mumbai – 400051 Suppliers. Malaysia. T: +91 22 2659 7272/3 MATRADE, through its offices in Interested Indian companies may get F: +91 22 2659 7274 Mumbai and Chennai have been in contact with us at: [email protected] actively assisting Indian companies रा煍य शासनाचा मलिे शयन कं पनीसोबत रत े िवकासासाठी दहा हजार कोट�चचा करार

 मु奍यमंतर्ी देव�दर् फडणवीस यां楍या उपिथतीत महारा�ातील र配यांचे सव�क्षण क셂न 配यांचा िवकास करणार साव셍जिनक बांधकाम िवभाग व ‘सीडबी’ यां楍यात आह.े यासाठी ही कं पनी रा煍यात दहा हजार कोटी 셁पयांची करार गुंतवणूक करणार आहे. तसेच नागपूर-मुंबई शीघर्संचार दर्ुतगती मागा셍楍या कामातही ही कं पनी सहभागी हो赍यास  ‘सीडबी’ कं पनी रा煍यात दहा हजार कोटी 셁पयांची उ配सुक आह.े गुंतवणूक करणार  नागपूर-मुंबई शीघर्संचार दर्तगतीु माग셍 िनिमतीसाठी यावेळी मु奍यमंतर्ी शर्ी.फडणवीस 륍हणाले, महारा� हे सीडबी कं पनी इ楍छुक देशातील आिथक, ��ोिगकदृ��ा पर्गत रा煍य. आहे महारा�ातील रते िवकासाम鵍ये मलेिशयातील कꅍटर्啍शन रा煍यातील पायाभूत सुिवधां楍या िवकासात रते िवकास हा इंडटर्ी डे핍हलपमट� बोड셍 (सीडबी) ही कं पनी सुमारे दहा हजार महत्त्वाचा घटक आह.े या पायाभूत सुिवधां楍या िवकास कोटी 셁पयांची गुंतवणूक करणार आह.े साव셍जिनक बांधकाम कामात सीडबी कं पनीने उ配सुकता दाखवून करार के ला ही िवभाग आिण सीडबी होि쥍डग या कं पनीम鵍ये आज आनंदाची गो� आह.े पर्配यक्ष कामे सु셂 झा쥍यानंतर महारा� यासंबंधीचा सामंजय करार मु奍यमंतर्ी दवे �दर् फडणवीस शासन व सीडबी कं पनी यांना पायाभूत िवकासासाठी अिधक यां楍या उपिथतीत झाला. मेहनत 慍यावी लागेल. तसेच सीडबी कं पनीने नागपूर मुंबई वषा셍 िनवासथानी झाले쥍या या काय셍कर्मात ‘सीडबी’चे शीघर्गती संचार महामागा셍ची िनिमती ही ऐितहािसक घटना चेअरमन जुदेन बीन अ녍दुल करीम आिण साव셍जिनक बांधकाम ठरणार आह.े 配यामुळे या िनिमतीम鵍ये सहभागी झाले쥍या िवभागाचे पर्धान सिचव आिशषकु मार िसह यांनी या कं पꅍया या इितहासा楍या साक्षीदार ठरणार आहत.े सामंजय करारावर वाक्षरीे कली. यावेळी मु奍य सिचव वािधन क्षितर्य, एमएमआरडीएचे अितिरक्त आयुक्त पर्वीण जुदेन िबन अ녍दुल करीम 륍हणाले, सीडबी कं पनीने मलेिशयात दराडे, महारा� रते िवकास महामंडळाचे उपा鵍यक्ष तथा पायाभूत सुिवधा क्षेतर्ात कामे लेक आह.े महारा�ातील रते �वथापक�य संचालक राधे�याम मोपलवार, िवभागाचे िनमा셍णातून शा�त िवकास कर赍यासाठी कं पनीला आनंद वाटत आह.े सुरिक्षत आिण ंग쥍या चा दजा셍楍या र配यां楍या सिचव एस.बी. तामसेकर, सी. पी. जोशी यां楍यासह िनिमतीसाठी नािव赍यपूण셍 व नवतंतर्ज्ञानाचा उपयोग कर赍यात `िसडबी`चे दातो सु ली, 煍युलीया बीन, अ녍दलु करीम, अ녍दलु येणार आह.े लितम िथन, झायनोरा झैनल, नु셁ल हयाती खलील आदी उपिथत होते. सौजꅍय : 'महाꅍयूज' ‘सीडबी होि쥍डग’ ही कं पनी मलेिशयन सरकारचा उपकर्म असून ती मलेिशयातील अगर्ग赍यं कपनी आह.े ही कं पनी

9 Special Feature

ECONOMIC IMPACT OF PM’s VISIT TO AFRICA

implemented nearly 140 projects in 41 African countries during this period of time frame. The following Agreements and Memoranda of Understanding (MoU) were signed by India and South Africa: • MoU on ICT • MoU on the Establishment of Grassroots Innovation in the area of Science and Technology • MoU on Tourism; and Programme of Cultural Cooperation

ndian Prime Minister Mr. Narendra is India’s partner in the BRICS The comprehensive Strategic Partnership Modi embarked his journey on 7th (Brazil, Russia, India, China, between South Africa and India, which july’16 till 11th july’16 and during his South-Africa) grouping. New was established through the Red Fort I Declaration (March 1997), and reaffirmed 5 day visit he bought layered agreement Delhi also needs to go in parallel to our country. His first stepped into touch with the African countries in the Tshwane Declaration (October 2006), Mozambique, which was visited by any because these countries are was hailed as an important mechanism that Prime Minister of India in last 34 years, the member of the Nuclear has contributed in the past to both South followed by South Africa, Tanzania and Suppliers Group (NSG), which Africa and India achieving identified lastly Kenya. In which Energy security, India hopes to gain entry into national objectives. Both countries further food security, blue economy, education, soon. Mozambique is the third committed to elevate efforts in achieving health, skill-building and infrastructure largest exporter of natural gas the goals like political freedom, economic were the key topics of discussion during after Qatar and Australia and development & social justice set out in Prime Minister Narendra Modi’s visit to a number of Indian companies the Declaration noting that in 2017 the the African continent previous month. including ONGC have invested twentieth commemoration of the signing of the Red Fort Declaration will be Mr. Narendra Modi first visited to heavily in the hydrocarbons celebrated. Lusophone Africa which is fledged with sector in this country. natural resources and looking for reliable Brief of Modi’s Visit: President of South Africa Mr. Jacob Zuma and Prime Minister of India Mr. Narendra partnerships. About one-fourth of India’s During his visit to Tanzania, Modi discussed intensified collaboration total investments in Africa have been South Africa, Kenya and in the sectors of defense, energy, agro- directed to Mozambique in recent years. Mozambique, Modi’s main processing, human resource development, Mozambique potential to sell natural gas is intention was to strengthen infrastructure development as well as high. India extended generous assistance Indian economy as well as science, technology and innovation. They in healthcare and skill development, and the political ties between the also identified focus areas for deeper concluded an innovative agreement to countries and to further bridge cooperation including manufacturing, help increase production of pulses, with a the gap in key economic sectors mines and minerals, IT, renewable guaranteed buyback arrangement. in BRICS and IBSA. energy, pharmaceuticals, tourism, S&T India has long-term security ties with India’s current trade with Africa and financial services. President Zuma Mozambique and New Delhi provided is around $75 billion and it has furthermore noted and welcomed the coastal security when the African nation granted a whopping $7.4 billion relaxation of foreign direct investment held a summit. State-owned ONGC for various developmental and rules through the lifting of the caps on Videsh Limited and public coal firms are capacity building projects in foreign direct investment in nine sectors also investing in the country. South Africa the past four years. India has of the Indian economy including the

10 Special Feature

Alliance (ISA) as a common platform for cooperation among solar resource rich countries. Prime Minister Modi invited South Africa to the deliberations leading up to the formalization of the Alliance. India extends help for development support to Tanzania and Kenya for Building road and port infrastructure. Also to boost India-Kenya defense partnership, Prime Minister Narendra Modi handed over the keys of 30 field ambulances to Kenyan President Uhuru Kenyatta. Last but not the least our Prime Minister Narendra Modi on his visit to Kenya stated that our historical people-to-people ties provide a strong basis to our wide-ranging defense, food retail, local airlines, private and Indigenous Systems will partnership, which extends: security firms and pharmaceutical sectors, be supported for 14 new joint indicating that the announcement will research projects. • From agriculture and health to have a major impact of attracting foreign Both leaders expressed developmental assistance; investment in these areas, including from satisfaction at the growing • From trade and commerce to South Africa. cooperation in the energy sector, investment; President Zuma furthermore invited and the potential to expand • From closer contacts between our the private sectors of India to invest in cooperation in the renewable peoples to capacity building; and energy sector, acknowledging various sectors of South Africa’s economy. • From regular political consultations to that both countries are leaders Likewise, Prime Minister Modi also called defence and security cooperation. upon the South African private sector to in the field of their own. We hope that this will lead to the betterment consider investing in key economic sectors Also, they acknowledged the of both the side of the economy and the in India. South Africa took note of the launch of International Solar people in respect. many opportunities for the private sector available in the “Make in India” “Made in India” initiative, and the Indian side noted the invitation to take advantage of infrastructure development opportunities in South Africa and the Continent. The leaders expressed satisfaction at the steady pace of cooperation in defense sector encompassing a wide range of engagements including defense production, joint collaboration, manufacturing research and development, training and joint exercises. Eight new bilateral R&D projects for instrumentation development and capacity building in the area of Indian Prime Minister Narendra Modi’s visit to South Africa came to an end on Saturday after he spent time in KwaZulu-Natal, where he visited a settlement establishment by astronomy will be implemented under Mahatma Gandhi, after taking the same fateful train trip India’s national icon undertook the framework of India-South Africa S&T in 1893. cooperation. Agriculture Biotechnology Modi boarded the train at Pentrich Station and travelled to Pietermaritzburg Station – the same trip Gandhi made in 1893 when he was thrown off the train because he was not white.

11 Cover Story Sustainable Water Management – A Case Study for Maharashtra

Dr. P. Sekhar A Brief Water Scenario by 20%, fueled primarily by the 29% of India’s ground water blocks in India industrial requirements which are are considered to be in need of very projected to double from 23.2 careful and judicious use henceforth. ndia represents 17.99% of the trillion liters now to 47 trillion world’s population, has only Sustainable water management I liters. Besides domestic demand is 2.4% of the total surface area of poses numerous challenges: reduce expected to grow by 40% from 41 the world and 4% of the world’s the gap between demand and supply, to 55 trillion liters while irrigation water resources at its disposal. providing adequate water supply will require only 14% more ten years Rain and snowfall offer over 4,000 for agriculture, balancing the hence, 592 trillion liters up from 517 trillion liters of fresh water to our uses between competing demands, trillion liters currently. nation. Large portion of these fresh meeting the growing demands of water reaches to the ocean through Irrational water use has led to higher big cities, treatment of wastewater, many large rivers flowing across groundwater consumption than sharing of water with the the subcontinent. A volume of recharge. Groundwater levels have neighbouring countries and among rain water is absorbed by the soil dropped drastically in the last 60 the co-basin states, etc. and helps recharge groundwater years. The Central Ground Water Tamil Nadu has been one of the supplies. A negligible amount Authority of India assessed all the first states to deploy technology of water is stored in inland 5,723 blocks, 839 have been found to to treat sea water, using water water bodies both natural (lakes and be over-exploited, 226 are classified desalination technology developed ponds) and man-made (tanks and as critical, while 550 are under the by the Department of Atomic reservoirs). Of the 1,869 trillion semi-critical tag. Thus, around about Energy to convert sea water into liters of water reserves, around 1,122 trillion liters can be exploited due to various topographic restraints and distribution effects. The use of water use goes up at a high pace in the past few decades. The present consumption in the country is near about 581 trillion liters with irrigation requirements accounting for a staggering 89% followed by domestic use at 7% and industrial use at 4%. The rapid rise in population, urbanization and industrialization has led to a significant increase in water demand. In the next decade water demand is expected to grow 12 Cover Story drinking water. The mega city’s water (3.08 lakh sq. km.). The State has a Water Desalination & Recycling requirements are met by desalination population of 11.24 crore (Census is Essential to curb water crisis in of sea water for many years now. In 2011) which is 9.3% of the total Maharashtra fact there are over 1,100 small and population of nation. The State is Maharashtra has a huge problem large desalination plants functional highly urbanised with 45.2% people of water scarcity due to low rain in India at present. Fish production residing in urban areas. The State has fall, poor river water availability, in India has increased more than 36 districts which are divided into six low ground w a t e r tenfold since its independence in revenue division’s viz. Konkan, Pune, levels and high demand. 1947. Fishing is a major industry in Nashik, Aurangabad, Amravati and Interestingly, the state also has high its coastal states, employing over Nagpur for administr ative purposes. industrial penetration and demand 14 million people. India has 7516.6 The average water availability in the from industrial users with readiness kilometers of marine coastline, state of Maharashrea cubic km. For to pay high prices for reliable 3,827 fishing villages, and 1,914 two consecutive years 2014 and 2015 water supply. Although high cost is traditional fish landing centers. the State received deficient rainfall involved in setting up and operating India’s fresh water resources consist of 70.2% and 59.4% respectively of a desalination plant, with emergence of 195,210 kilometers of rivers and the normal rainfall. Live storage of of new energy efficient technologies canals, 2.9 million hectares of minor water reservoir was 72.5% in 2014 and solutions desalination is likely and major reservoirs, 2.4 million and 61.4% in 2015 of its respective to become more economical and hectares of ponds and lakes, and total capacity. The total live storage, easily used alternative for domestic about 0.8 million hectares of flood 2014 in the major, medium and and industrial need of water. plain wetlands and water bodies. minor irrigation (State sector) Desalination is a process by which reservoirs taken together was 25,001 Maharashtra Water Sector at a dissolved salts are removed from million cubic meters. This has posed Glance seawater or brines water thereby challenges to meet water requirement converting it into drinkable or usable Maharashtra is the second largest not only for agriculture sector but water in industries. state in India both in terms of also for drinking purposes. population and geographical area Coastal cities or districts of Maharashtra can use seawater for their municipal water supply (around 200 – 300 km distance). Desalination combined with Water recycling is both integral components of our “water crisis” solution. Sewage Treatment Plants in India Besides in India, n e a r l y 62,000 million litres sewage is generated per day in urban areas. In rural India, an estimated 600 million plus people lack sanitation facilities. Out of the total sewage generated from urban areas, only 23,277 million litres is treated. There are around 816 sewage treatment plants in the country, out of which 522 are in working condition, 79 don’t

13 Cover Story

Comparison of Blue Economy Assets The State has 720 km long coastline India Maharashtra with two major ports, operated by Population (in million) 1,335.9 121.36 Mumbai Port Trust (MbPT) and Area (Sq. km.) 3,287,263 307,713 Jawaharlal Nehru Port Trust (JNPT). Coastal Length (in km.) 7,516.6 720 Besides Maharashtra Maritime Coastal district Population (in million) 171 28.6 Board (MMB) has undertaken Major / Minor ports (in nos.) 13 / 200 02 / 51 development of six non-major ports. Islands (in nos.) 1,208 06 Moreover the state has 35 creeks Dams (in nos.) 4,839 1,693 and rivers. Presently, over 96 lakh Length of Rivers & Canals (in km.) 195,210 16,000 people living across the coastal belt Length of Navigable Water ways (in km.) 14,500 462 of the state use water transport every Annual replenishable Ground water resources (in BCM) 431.02 35.73 year. In comparison, over 70.22 lakh work, 145 are under construction of passenger jetties on the Western passengers use public road transport and 70 are proposed. Water shortage Coast of Mumbai from Nariman daily in the state. and waste water treatment for reuse Point to Borivali and on the Eastern Fisheries in Maharashtra in urban areas are acute issues that Coast of Mumbai from South Maharashtra state has a coastline of need immediate assessment in the Mumbai to Navi Mumbai. 720 km with 173 fish current times. Even Israel has always landing centres and the area suitable Even though inland waterways been a leader in water conservation for marine fishing is 1.12 lakh sq. transport is an economical and eco- technology because of its desert km. There are 15,686 marine fishing friendly mode of transportation, it location. Besides United Kingdom boats in operation, of which 12,831 requires initial government support is a leader in smart water metering are mechanised. In addition the area as it has a long gestation period for technology, enabling residents to is suitable for inland and brackish return on investments. monitor their water usage online. water fishing and 3.17 lakh ha and Inland Waterways in Renewable Energy in 0.10 lakh ha respectively in the state. Maharashtra Maharashtra Coastal Region There are 30 fish seed production centres in the State with 2,414 lakh Maharashtra has more than11 Wave energy is, in fact, the storage spawn production capacity per year important west flowing rivers of mechanical energy of wind for catering to inland fishing. During including Damanganga Surya in the sea water. Sea waves are 2014 – 15, the gross value of fish Vaitarna, Ulhas, Savitri, undalika, variable in nature and their height production was INR. 5,900 crore in Patalganga, Vashisti, Shastri, Karli, and width changes with time and Maharashtra. and Terekhol. There are numerous season. Various surveys stat that smaller rivers joining the creeks. coast of Maharashtra has shown Secured Governance (SG) Strategy There are around 1,693 reservoirs that there are some potential sites for Sustainable Economic growth and dams in Maharashtra, few such as Vengurla rocks, Malvan in Maharashtra Water Sector SG of them are Khadakwasla Dam, rocks, Redi, Pawas, Ratnagiri and offers a strategy for the government Panshet Dam, Radhanagari Dam, Girye, possessing an average annual to get all the basic infrastructure Wilson Dam, Ujjani Dam and wave energy potential of 5 to 8 development with a negligible Koyna Dam, the major dam of kW/m and monsoon potential of investment by the Government. It Maharashtra. Approx. 15 million 15 to 20 kW/m. Considering this, is a concept of developing various passengers in the coastal districts of the total potential along the 720 HUBs (Smart Cities) which will act as the state use Inland Water Transport km-stretch of Maharashtra coast growth centre for individual sectors. annually. The State Government has is approximately 500 MW for wave Both inland freshwater & marine recognized the importance of Inland energy power plants. water resources and activities such as Water Transport and development shipping, fishing, tourism and leisure,

14 Cover Story oil & Gas, renewable energy, aquatic plants, marine biotechnology, deep sea mining etc. will come under blue economy concept. Island and inland water bodies are expected to gain more from the blue economy orientation in their development policies. The protagonists of this approach visualize a great potential for growth and job creation in the blue economy sectors. The development of inland water transport, coastal passenger water transport, and cargo movement on rivers will be under the transport corporation. Inland water transport sediments along with close spaced the economy that is directly linked systems which had created an bathymetry, shallow seismic and to the water medium but also in an ecosystem around its services such side scan sonar survey using coastal increase in the ancillary and support as development of marinas, cruise vessels are proposed in the near services associated with the marine services, luxury yachting and cruises shore areas off Maharashtra and and inland water operations. Time on the lines of Palace on Wheels to other coastal states of India. may be opportune to establish a increase tourist turnover and inflows. Off Ratnagiri district (Maharashtra) blue economy platform for state of This will also be done through -5.19 million tonnes value- Rs.1,186 Maharashtra where we can develop private ventures. Maharashtra has crores. secured governance models that can make optimal use of financial 14 rivers and creeks in the list of India has large reserves of beach resources national waterways, including seven sand heavy minerals in the coastal in the Konkan and seven in the areas stretches around the country [email protected] outside it. This includes the Kalyan- specifically in west coast of Views expressed here are personal Thane-Mumbai waterway including Maharashtra. Beach Sand contains Dr. P. Sekhar is a respected development the Vasai creek and Ulhas creek the important heavy minerals such as thinker and an author of well-documented series of 60 plus books on Secured Techno- (NW 99 and NW 49). Titanium bearing minerals including Economic National Growth. These books Ilmenite, Rutile and Leucoxene, as have looked at different Indian states, what Blue Economy Potential in they have and what they need; and different Maharashtra well as Zircon, Monazite, Garnet growth oriented key sectors to assess their and Sillimanite. potential and what is required. He holds a Blue Economy is the long term Master's Degree in Science with a doctorate Conclusion in Solid State Electronics and Nuclear strategy to support sustainable Physics. The path breaking concept of growth in the inland water and “Blue Economy” is a new concept in 'Secured Governance” developed by him maritime sectors as a whole. Inland offers a series of recommendations on water-based economic development various aspects of multi-sectorial growth water systems and oceans are that leads to improve human well- in India to meet the challenges of the 21st century. drivers for the state economy and being and social equity, while have great potential for innovation, He has had the opportunity to present his significantly reducing environmental papers in many international and domestic employment opportunities and risks and ecological scarcities. The forums including global leadership program sustainable economic growth. UK on various topics like smart cities, successful implementation of the blue economy and concept of secured Besides study of geotechnical and Blue economy strategy will not only governance. mass physical properties of seabed result in an increase in activities and

15 Cover Story India’s Water Resources and Population – Need for Interlinking of Rivers and efficient Water Management

Dr. R.K. Sivanappan Introduction: rainfall of 1150 mm as compared to population). In India; the total the world average of 840 mm and available water is sufficient for a ndia is endowed with plenty of about 400 mm is in Israel. Israel water and land resources. India’s population of 1650 million (1500m3 I is managing the water successfully land area is about 2.5% of the world, / per capita/ year) where as in Cherapunchi, India where Water Resources is 4% of global River basins being the basic the rainfall is about 11,000 mm, availability and the population is hydrological unit for assessment of getting water is a problem for 2/3 about 17% of the World. The water resources of the country. The months before the commencement available area is about 165 M.Ha. of monsoon every year. entire country has been divided into which is second highest in the World 20 basins; Comprising of 12 major and similar to that of Population. In Water is most crucial natural basins having a catchment area of 1990’s, about 65% of the population resources and the availability 20,000 km2 and the remaining 8 of India comprised of cultivators greatly influence the health of basins are medium and small. (farmers) and agricultural labours people and development of that indicating the country dependence area. According to the standard The National Commission of agriculture ie land and water. definition; for water availability from for integrated Water resources Therefore the needs for water 1000m3 /per capita / year to 1700 Development plan has assessed resources development for over all m3/ capita / year shortage will be the countries water resources as social and economic development local.. Below 1000m3/per capita/ 195.29 MHM in 1999. According were duly recognized from the very year, water supply begins to hamper to Central Water Commission, the beginning. health, economic development utilizable water resources in all the and human well being. At less than India has abundant water resources, 20 basins is 69 MHM which is about 500m3 / per capita/ year water but water problem is very serious in 35% of the total surface water. This supply is a primary constraint to life many States. This year (2016) Water water will meet irrigation needs for and countries experience absolute Problem /Scarcity was noticed a cropped area of 76 MHa. The scarcity. The 1000m3 /per capita/ in about 10 States i.e Maharastra, inter basin transfer proposed by year has been accepted as a general Rajasthan, Karnataka, Telungana, the National Water Development indicator of water scarcity by World Anadrapradesh, Madyapradesh etc., Agency (NWDA) envisage Bank and other agencies. About 32 crores of the population additional utilization of about 20 are affected even to get drinking 2. Water Resources: – 25 MHM water. Also according water. As a scientist working in this to a very preliminary study about In the world also water resources field for more than 60 years, I was are abundant. The available water is 16 MHM of water resources can be warning /telling for the last 30-40 sufficient even if the population of additionally utilized thro’ artificial years that water problem in India is a the world is increased to 25 billion recharge of ground water totalling man made problem and not the fault (i.e 3 to 4 times of the present about 40MHM. of the Nature. India gets an annual

16 Cover Story The latest assessment of The total storage build up in various per capita water is 680 M3 which replenishable ground water resource basins thro’ major and medium is less than 1000m3/P/Y and this has been made as 43.20 MHM in the projects upto 1995 is about 17.37 indicates the country will face severe year 1994 – 95 by the Central Ground MHM.. The major and medium water scarcity & severe constraint Board. The utilizable ground water under constructions and identified on food production and economic has been assessed as 39.56 MHM would account for 7.54 MHM and development of the country. (7 MHM for the domestic and 13.23 MHM respectively. The total 3. Inter linking of rivers: industrial uses and 32.56 MHM for being 38.15 MHM After taking irrigation) which can irrigate about into account the minor storage Under these circumstances, it is 64 MHa. The total irrigation is about structures including tanks / ponds very essential that GOI must take 140 M.Ha (SW=76 M.Ha, & G.W (about 4 mhm) the total storage action seriously for the inter linking = 64 MHa). The basin wise details capacity would be about 42 MHM.. of rivers in the country to use all of various water resources and their This account for the populations of the available water in the rivers utilization components are given in 1210 million in the storage capacity (195 MHM) without postponing Table1. created in the country per person further. As discussed early, the water comes to about 350 m3 compared The assessed gross available water and availability in the country is plenty, utilizable water to USA 5961 m3, China 2486 m3 but it is unevenly distributed and River flow (surface =195.29 + 43.20 and soon. In this connection, it is hence the water scarcity problem water) + ground water = 238.49 MHM not out of place to mention that The assessed utilizable = 69.00 + 39.56 exists in many parts of the country water =108.60 MHm there are about 45000 large dams in particularly in south and in west the world of which 46% is in China, Based on population of India from The unused water 65% which is 14% in USA, only 9% in India, 1991-2050 (expected) the gross flowing in to the sea should be Japan and Spain are having 6% and availability of water and utilization utilized profitably by diverting from 3% respectively. The above facts water resources per capita / year are sur plus areas to deficiat parts in the indicate that India’s water storage given in Table 2 country. To solve the water problem, capacity and dams constructed are the Govt of India has created The utilizable water resources per very meager compared to various the National Water Development capita per year various from 3020 countries the world taking into Agency (N.W.D.A.) IN 1982. It is an m3 in Narmadai basin and about 180 consideration of the population. autonomous society to work under m3 in sabarmathi basin. Out of 20 From the data / details in Table 1 the over all control of the ministry basins 4 basins had more than 1700 & 2, it is seen that even the entire of irrigation, G.O.I m3 / p/y utilizable water resources, surface water and ground water while 9 basins had between 1000- The main objectives of the NWDA available in the country is taken into 1700 m3, 5 basins between 500- are to study the following 3 inter account i.e. 238.50 MHM for the 1000 m3 and 2 basins had less than linking of river projects to find out Physical population of 1650 million 500 m3 in the year 1991 when the the possibilities of the project: in 2050, the per capita availability population of India was 851 million. of water per year comes to 1450 1. Ganga - Bramaputra-Cauvery The population in 2050 is expected M3 which is less than 1700 and linking or Himalayan River to reach about 1650 million and this indicates water shortage and Development. the food grain requirements of the the country will face water stress country may be around 550-600 2. Inter linking of Peninsular condition according to World bank metric tones, including for losses Rivers ie Mahanadhi, Godavari, / U.N norms.. If the utilizable water in storage and transportation, seed Krishna, Pennar, Cauvery & alone is taken into consideration requirements and carry over for years Vaigai or Peninsular Rivers (108.60 MHM) for the projected of monsoon failures (allowances of Development population of 1650 million in 2050, 15%) etc.

17 Cover Story Proposed inter Basin Water Transfer links will be reaching grand anicut, of this about 100 TMC is proposed to be utilized in the Cauvery basin and balance of about 80 TMC will be used in Vaigai and Vaippar basins, the area which can be irrigated from this water is about 2 M acres. The NWDA has estimated the cost 10 years back at Rs30,000 crores for connectiong Mahanadhi – Godavari – Kaveri and Vaigai having a length of 3716 Km to divert the surplus quantity of about 1000 TMC. (see Fig.1) The author has collected data and worked out the water requirements (demand) of Kerala state and arrived that surplus available is about 500 TMC though the GOI (NWDA) has estimated about 1000 TMC. If this quantity (i.e.500 TMC) is diverted to east (Tamil nadu), it is possible to bring 5 million acres under irrigation in the Southern districts of Tamil Nadu. 3 Divert the west flowing rivers most of the links. in Kerala, Karnataka, Goa & As part of diversion, the NWDA Among the various Peninsular Maharastra to east ie to Tamil has prepared blue prints to divert the rivers, Mahanadhi and Godavari do Nadu, Karnataka, Andhra west flowing rivers to East in Kerala have enough surplus supplies, even Pradesh, & Maharastra States. state. According to which the Pamba after meeting the ultimate projected and Achankoil rivers carry about 250 Though all the 3 proposals are demands of the basin states. It is TMC in kerala can be diverted to feasible & Workable, immediate proposed to provide Mahanadhi – Vaippar river in Tamil Nadu to an action can be taken for items 2&3 Godavari link running along east extent of 22 TMC to be used in the simultaneously as the detailed study coast, to transfer excess supplies drought prone area of Tirunelveli, has been undertaken and the cost is of Mahanadhi to Godavari by Toothukudi, Virudhunagar districts within reasonable limit. gravity flow. This proposal is likely to irrigate about 2.26 Lakhs acres at to irrigate drought prone areas of a) Inter Linking of Peninsular an estimated cost of Rs.1400 crores. Maharastra, Andhra Pradesh and Rivers Yet another project in the minds of Tamil Nadu. Then Krishna - Pennar farmers in Tamil Nadu is Pandiar The NWDA has done an excellent link to meet the enroute irrigation and Punnampuza scheme. This job. It has identified 17 links under requirements in Krishna and Pennar scheme was visualized long back as Peninsular river development plan. It basins. has also prepared the pre feasibility a hydro electric project, but when The Pennar – Kaveri link shall out fall reports of all the17 links along with farmers of Tamil Nadu wanted it into Cauvery at Grand anicut. After completing feasibility reports of as an irrigation cum hydro electric utilizing the enroute, about 180TMC

18 Cover Story project, the Kerala Government without displacement of people, of water in the country. did not give permission. If this divert the West flowing water to the • Systems of rice intensification project is implemented (only Tamil East Tamil Nadu across the Ghats (SRI method) should be Nadu water since the catchment through pump storage schemes, followed in paddy cultivations area is in Tamil Nadu), about 10- utilizing the wasted existing thermal to save water of about 40-50% 12 TMC of water which is flowing power in the night time, during and to increase the yield by to the Arabian sea can be diverted monsoons for removing shortage of about 3/4 Tons/Ha. to Bhavani / Moyar basin in Tamil supplies for irrigation, Industry and • Provide drainage especially Nadu and this water can irrigate drinking water. By this, it is possible in canal / tank irrigation and about 1.2 to 1.5 lakhs in dry districts to use the water in Karnataka and reuse the drained water, if it is of Coimbatore, Tiruppur and share the excess water with Tamil suitable.for irrigation. Erode districts. This project can Nadu and Andhra Pradesh. • Conjunctive use of surface and ground water. be implementd immediately as the The Five projects suggested above, if • Using sprinkler irrigation in NWDA has done the detailed survey implemented, the water and energy canals and tank command areas and it is economical, feasible and problem of southern states namely for all closely spaced crops viable. Andhra Pradesh, Karnataka, Tamil except rice. b) Diversion of West flowing Nadu, Kerala and Puducherry can be • Introducing drip irrigation in rivers in Karnataka to East to solved and all will live comfortably. well irrigated areas for all row use it in Karnataka, Andhra c) Diversion of Ganga crops – cotton, sugarcane, Pradesh and Tamil Nadu Brahmaputra rivers banana, coconut and vegetables, In Karnataka, the Western Ghats or Himalayan River etc. which is about 13% of the development • Irrigation based on water / geographical area of the state has Mean while, detailed study can be fertilizer production function curves 60% of the states Water resources taken up to find out feasibility for in terms of quantity due to high all links to connect Brahmaputra - • Training farmers and extension officers in water management intensity of rainfall and every drop Ganga to other West and Southern of it is running as waste to the sea. rivers of the country to solve water • Conducting seminar / workshop in villages to bring awareness to The balance 87% of the area of the crisis of the entire country(see Fig.2). all farmers to safe water and to state mostly comprising Krishna and The cost of the project may be about increase yield. Cauvery basins have only 40% of Rs.8 to 10 Lakh crores, which is also • Demonstration and workshops the waters for which Karnataka has not much, compared to the benefits. may be organised in village in water disputes with Tamil Nadu and For implementing this project the farmer’s field to use water Andhra Pradesh fighting in courts. cooperation of Nepal, Bangladesh, judiciously. The West flowing rivers in Uttara Bhutan may be necessary, therefore • Extension officers in water Kannada and Dakshin Kannada we can implement the peninsular managements should be created Districts of Karnataka state like river development and divert west in block level as in the case of Nethravathi, Kumardhara, Varahi flowing rivers to East to start with etc have in all about 2000 TMC agronomy, Plant protections, and linking of Ganga – Brahmaputra etc. annually(Table 3) as against Krishna can be taken up later. and Cauvery put together of 1300 If the rain water is harvested, TMC. 4. Efficient water management: conserved and managed properly as detailed above, there should not We can, easily and economically The following are the new irrigation be any water scarcity problem in the without disturbing the environment strategies –Water management country. and ecology of the forests and practices which can be followed / introduced to over come the scarcity

19 Cover Story Table 1 Mean flow, Utilisable Surface and Ground Water Resource – Basin Wise

Sr. River Basin Mean Flow Utilizable flow Replenishable ***utilisable No. Surface Water Surface Water Ground Water Ground Water BCM BCM BCM BCM 1 Indus 73.31 46.0 26.50. 24.3 2a Ganga 525.02 250.0 171.00 156.8 2b Brahmaputra *629.05 24.0 26.55 24.4 2c Barak 48.36 - 8.52 7.8 3 Godavari 110.54 76.3 40.64 37.2 4 Krishana **69.81 58.0 26.40 24.2 5 Cauvery 21.36 19.0 12.30 11.30 6 Subernarekha 12.37 6.8 1.82 1.7 7 Brahmani-Bartarni 28.48 18.3 4.05 3.7 8 Mahanadi 66.88 50.0 16.50 15.01 9 Pennar 6.32 6.9 4.93 4.5 10 Mani 11.02 3.1 7.20 6.6 11 Sabarmati 3.81 1.9 - - 12 Narmada 45.64 34.5 10.80 9.9 13 14.88 14.5 8.27 7.6 14 West Flowing Rivers Between Tapti to Tadri 87.41 11.9 17.70 16.20 15 West Flowing Rivers Between Tadri to Kanyakumari 113.53 24.3 - - 16 East Flowing Rivers between Mahanadi &Pennar 22.52 13.1 11.22 10.3 17 East Flowing Rivers of Kutch &Saurashtra&Luni 16.46 16.7 18.80 17.2 18 West Flowing Rivers of Kutch and Saurashtra & Luni 8 15.10 15.0 0 0 19 Area of Inland Drainage in Rajasthan 00.00 - - - 20 Minor Rivers draining into Bangladesh &myanmar 31.0 - 18.12 16.8 Total 1952.87 690.3 431.32 395.6 Source : CWC, publication 6/93-Reassessment of Water Resources Potential of india. Ground Water Resources of India CGWB – 1995 • : * Includes Additional Contribution of 91.81 BCM being flow of 9 Tributaries Joining Brahamaputra • ** Assessment is based on mean flow of the yield series accepted by kwdt award. The figure of heCWC assessed from run-off data at vijaywada is 78.12 BCM. • *** Computed on proportionate basis from annual replenishemtn. • 10 BCM = 1 MHM Table 2, The Available and Utilizable Wafer per Capita per Year in M3 in India (From 1991 to 2050)

Population Available Water 283.5 MHM per Utilizable water 108.60 MHM per Year Remarks Million capita/year M3 capita/year m3 1991 850 2830 1290 500M3 – absolute scarcity 2001 1030 2316 1055 1000 – Scarcity and stress 2011 1210 1970 910 1700 – shortage will be local and rare 2025 1350-1400 1700 780 > 1700M3 – Water – No Problem (estimated) M3-cubic meter 2050 1650 14445 680 M.H.M. – million hectare meter (estimated) [email protected] The Author is a Founder Director, Water Technology Centre Tamil Nadu Agricultural University Views expressed here are personal Foot note: This article is re-produce from YOJANA Magazine, Ministry of Information and Broadcasting GoI, July 2016 issue (Marathi)

20 Cover Story

“Namami Godavari”

Cdr. Dipak Naik Introduction: The city of Nashik has great religious significance due to its KUNDs, the Kumbha Mela and for being the abode of Lord Rama during his exile of 14 years. The city of Nashik is the administrative headquarters of the Nashik district. The Godavari River originates in the district and drains east towards the Bay of Bengal. Godavari is also revered as the “Dakshin Ganga”. She originates at Trimbakeshwar.. The River is non-perennial as per irrigation department. Irrigation department of Nashik district releases water in Godavari River only in Rabi season at every 15 days interval. Another major river is Girna. Other rivers discharge of 1318.40 cumecs (46560 are 9 radial gates(9.15x6.10 m..each) are Darna,Mosam, Aram, Vaitarna, cusecs). There are 6 irrigation outlets with a discharge capacity of 2294 Manyad and Kadwa. on left bank and 2 irrigation outlets cumecs (81013 cusecs). The dam on right bank. The total catchment has two canals, the left bank canal Hydrology: area is 404 Sq.Km. Live storage of is 64 Km. long and right bank canal a. DARNA DAM:- Darna dam the dam is 202.42 MCM (7149 is 30 Km. long. The total irrigable is situated at 20 Km. from village mcft). Its Gross command area area of this dam is 15960 Ha. The Wadivarhe on the Nashik Mumbai (GCA) is 79697 Ha. Irrigation department releases 4.5 highway.The village Wadivarhe TMC water to the Nashik Municipal b. GANGAPUR DAM: - This dam is 15 Km. from Nashik.This is a Corporation in the Godavari River, is 10 Km from Nasik, near village masonary dam constructed in 1916. on which 1 TMC was earmarked for Gangawadi.This earthen dam was The total length of this dam is 1634 the last Kumbh mela because the constructed in 1954. Its catchment meters, and the height of the dam kunds are dependent on the water area is 357.4 Sq.km. Its is 3810 m.in is 28 meters.There are 50 automatic released from this Dam. length and its height is 36.57m. Reynolds type gates for passing Gross storage of the dam is 215.88 Kashyapi dam the discharge of 2017.55 cumecs Medium Projects*: MCM (7624 mcft) and live storage is near Khadyachi wadi was completed (71250 cusecs). In 1972 additional 203.76 MCM (7200 mcft), which in in 2005. It has a height of 41.75 M 6 radial gates of size 12.19 x 4.27 actual fact may be much less. There and a capacity of 52.43 M. (* Source: m. were constructed for passing the

21 Cover Story Nashik Irrigation department) the area narrows itself significantly Haridwar and Allahabad, the Purna when the depth reaches the bottom. Kumbh takes place every twelve The Holy Kunds And Their More often a distinguished Kund years at four places, i.e. Allahabad, Design: The Nasik Municipal would have minimum five to seven Haridwar, Ujjain, and Nashik. Thie Corporation (NMC) in its skewed levels starting from top to bottom, last Kumbh Mela at Nashik was wisdom has destroyed the very and a Kund is generally a square held from July to September 2015. basic structure of numerous holy or rectangular in its shape, while a There were 14 Akhadas, of which Kundas in the city by concretization few may be oval or round in their 11 belong to the Shaiva sect (of the of the Kundas. It will be usefull to shape. Apparently the Kund stood 11 Shaiva Akhadasa, one—Bhudada understand the traditional wisdom of as a distinct identity of Indus Akhada—is defunct, while 10 are the design of these ancient structures. Civilization and it’s Architecture. active) and 3 to the Vaishnava sect. The term Kund, its origin, existence Sites, excavations and findings at The Shaiva Akhadas take a holy dip and application, and the resultant Mohenjo-daro, Lothal, Dholavira, at Kushavart in Trimbakeshwar, references are prominent in Puranas, Harappa, etc. are live examples for a about 30 km from Nashik. The epics, Vedic, cultural, and religious thorough study, other than a number Vaishnav Akhadas perform rituals scriptures - references, and therefore of places which accommodate a at Ramkund in Godavari and no exact date or a period can be regular or distinguished Kund across stay at Tapovan.The Vaishnava established, claimed or challenged India. Thus it must be understood Akhadas have Khalsas attached with for Kund’s prevalence while it is that these structures are time tested them. Both Shaiva and Vaishnava quite a common phenomenon in and proven. The NMC’s approach Sadhus used to take the holy dip in the Indian culture. Yagna Kund (for of concretizing the entire river bed Trimbakeshwar, Vaishnavs to move rituals and Vedic sacrifices), Brahma along its length and on banks was a downstream to Ramakunda in Nasik. Kund (for bathing, with sacredness grave thoughtless error. The other most important occasion and medicinal properties) and Snan to be performed at this place is the Kund (for bathing) are three main Faith, Tradition and the Need for post death ritual. It is believed that by features and types of Kund. To Conservation:-Kumbh Mela is the immersing the ashes of the departed understand the design of a Kund in most sacred of all the pilgrimages. person in the Asthi kund here and simple words, with a wide opening at Thousands of holy men and women by taking a dip in the holy Kund the top level, the Kund descends with attend. The Ardh (half) Kumbh thereafter, results in leading the soul reducing area at each level and finally Mela is celebrated every six years at of the dead on to the heaven. Details of the Kunds in Nasik

S.No. Name of the Kunds Size (in meters) Year of Construction 1. Gopikabai Tas 131 × 3.0 ×3.0 1761-1772 2. Laxshaman Kund 20.72 × 16.45 1758 3. Dhanushya Kund 15.24 × 1.52/2.13 NA 4. Ram Kund 25.29 × 12.19 1696 AND 1782 5. Sita Kund 10.00 × 9.14 NA 6. Ahilyabai Kund 18.28 × 12.80 1766-1795 7. Sharangpani Kund 11.88 × 10.36 1779 8. Dutondya Maruti Kund NA NA 9. Panchdevlacha Kund NA 1758-1874 10. Dashashvamedha Kund 78.00 × 40.23 NA 11. Ravnagaya Kund 33.52 × 27.43 1763-1780 12. Peshwas Kund 79.23 × 7.3 1720-1740 13. Khandoba’s Kund 24.00 ×26.52 14. Oak Kund 37.18 × 13.41 1795 15. Vaishampayan Kund NA 1870 16. Mukteshwar Kund NA 1788 and 1828

22 Cover Story NEERI’S Observations: NEERI’S plants in aquatic ecosystems, of the department of Water had conducted a study in the past. are an important component Resources, Government of They recommended following of biological monitoring Maharashtra, The Municipal actions for improving the water programs for evaluating commissioner and the Engineer quality: water quality. They are suited in charge of environment in • De-siltation of Gangapur Dam to water quality assessment the Nasik municipal council, because of their nutrient needs, The members of the Purohit • Maintaining flow in the River rapid reproduction rate, and association and with all the • Storm Water Drainage System very short life cycle. From an active members of very management plan ecological and public health knowledgable and dedicated • Wastewater Management perspective the abundance of NGO “Goda Premi Nagarik” • Solid Waste Management nutrients containing nitrogen led by Mr. Devang Jani. (N) and phosphorus (P) that • Minimize Impacts Due to Findings: From the investigation flow into lakes, reservoirs, Devotees, Disposal of Nirmalya carried out downstream of the streams and rivers resulting in • Prevent Open Defecation Godavari River at Nashik city, it eutrophic conditions. was concluded that the quality NERIL’S Observations : Naik of the Godavari River is severely Environment Research Institute c. Improper management : Most of the live kunds were contaminated. The domestic Ltd (NERIL) during their studies in regrettably concretized with a wastewater of the city was the Nasik have analysed the problems foundation slab before the 2003 major polluter responsible for the of Godavari in Nasik. They had Kumbh Mela, consequently contamination of Godavari The prepared a detailed report for the their water carrying capacity Kunds are solely dependent on the study commissioned by Sir Dorabji is considerably reduced. water released from Gangapur Dam. Tata Trust. The keys issues leading Concreting any natural water Restoration of the original river to degradation of kunds according body is an improper action as bed will help restoring the natural to this report are: it damages and destroys the springs and ground water flows. a. Anthropogenic stress : Kunds riparian region. This will improve the characteristics of Nashik have been lost in the of water in the kunds and will also d. Lack of data about the past process of various anthropogenic meet the religious expectations work done on the ghats/ activities and population of people while also meeting the Kunds: During the interaction pressures leading to unplanned desired health/ hygiene standards. with officials it was noted that urbanization and expansion. The NERIL report has given a no official drawings are available Rest of the surviving lakes, are two stage solution for the remedial with irrigation department as reduced to cesspools due to measures these are as follows: well as NMC for the alteration direct discharge of unregulated done to the River bed and its Immediate Remedial Measures: dumping of solid wastes like surroundings. degraded flowers, plastics, ashes • Removal of Solid Waste etc. Assessment of Kunds: NERIL • Removal of Silt team had barely a month to • Proper flushing of kunds water b. Algal Bloom: - One of the complete the task prior to at regular and frequent intervals. major pollutants in Kunds is the last Kumbh mela. The • Allocation of separate area for blue green algae which are the expert team held discussions washing. Providing dust bins, main cause of eutrophication. with all the stake holders toilets, changing room, Light Algae can function as indicators including the Chief Engineer arrangements, Generator set etc. of water pollution. Algae, a and Superintending Engineer • Providing diffusers and vital group of bacteria and fountains. Aeration and washing

23 Cover Story place: The water in the kund is unscientific and has damaged event of a disaster arising from stagnated during non-monsoon the natural eco-system of the a breach in the Gangapur dam. months. It, therefore, has to river in the kund area. This has • Finally the long term plan and be maintained at river water to be reversed by re-opening the its execution must provide for quality by artificial and forced springs. This will be a delicate operation and maintenance aeration. and fountains and task as use of explosives and mechanism. aerial diffusers. wrong techniques may damage Conclusion: According to the Long term Remedial Measures:- the aquifers. This action has to be undertaken under expert NERIL report, the estimated • Preventing Sewage from supervision by the Department cost of the immediate measures entering the River: Collection of Water Resources or by a forcleaning of Kunds in Nashik and treatment of all sewage has special purpose vehicle formed isRs.4,33,23,353/-. A separate DPR to be efficient.S.T.P installations for this purpose with people’s will have to be made for long term have to ensure that no untreated participation. We recommend measure mentioned above. This will sewage comes in to the river. that the funds required for include removal of concrete beds, The capacity and technology this task may be provided by restoration of natural springs and of sewage treatment has to the Department of Water collection and treatment of sewage. match the needs of desired Resources, Government of To summarize it should be said that water quality. This task has to Maharashtra. the actions necessary to maintain the be taken up on priority by the quality of water in the kund is not Municipal Corporation by use • Provision of green zone only needed for the kumbh mela, but of contemporary technology. particularly in ghat Area.There is also necessary for the entire year. Considering the relegious are hundreds of devotees on In the interest of public health and importance of the Kunds and these ghats / kunds to conduct the future of this city the Irrigation the kumbh mela it is necessary their rituals. A very well thought department and Nasik Municipal that the quality of treated sewage out plan for the development Corporation should start the work at being discharged in the river be of this entire riverfront area the earliest. routinely analysed for desired is needed. It should take in [email protected] quality by a Third Party such to account the need for rapid Views expressed here are personal as MPCB with an appropriate entry and exit from and to the adjoining high grounds. The Author is the President and CEO of Naik involvement of local NGOs to Environment Research Insitute Ltd. (NERIL) ensure people’s participation. Circulation area, Commercial and President, MEDC. areas, edge conditions and • Removal of concrete bed from so on.The location, design The target for “NAMAMI the bottom of kunds and and execution of various GODAVARI” should be to Reopening the blocked springs: conveniences such as washing achieve the standards laid down There were numerous natural by the Central Pollution Control places, clock rooms, toilets, dust springs that enriched the waters Board for river raw water quality, bins, watchman cabin have to of Godavari in this area. The aesthetics to suit the reverence be planned and executed using long term solutions include associated with Kumbmela in architectural design, materials conductivity survey to identify the abode of Rama, aspirations and ethos of the ancient Hindu of a rapidly growing vibrant the acquifers and the original ghats and Kunds. modern city and a bench mark spouts of these spring. These • Provision of a Disaster to emulate for all cities in India springs were the cause of the on the banks of a river under the Management Plan. A detailed original water quality at the ‘Swachha Bharat’ mission. Kund for centuries. The action dam break analysis is needed to of blocking these springs was simulate the conditions in the

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Deliberate Efforts Required for Water Conservation

Dr. S. B. Goilkar he Maharashtra government these purposes, resulting in reckless increase from 1970 to 2011. launched a massive drive in fall of trees. The deforestation is one T It is now an established fact that the last week of June this year to of the reasons for climate change rising temperature of the earth is due increase the green cover across the of the earth, apart from causes to rising greenhouse gases, caused by state, immediately after a good start such as fast developmental process developed living standards of human of monsoon over the state. As part including reckless use of energy being all over the world. Increased of the drive, about 2 crore trees for producing various products, human activities are causing for were planted across the state. The increasing fossil fuel consumption climate change of the earth in a big state government also announced its for various transportation means, way, resulting in imbalance in cycle plan to plant 50 crore saplings in the electricity generation etc. of nature. Climate change refers to next 3 years. The government has Earth's climate is a sensitive system. significant, long-term changes in the finalized 65,674 sites and has created The earth’s atmosphere has always global climate. The global climate is a bank of over 5.32 crore saplings acted like a greenhouse. Atmospheric the connected system of sun, earth for distribution. The effort could be warming is attributed to human and oceans, wind, rain and snow, considered as the first such effort on activities that have increased the forests, deserts and savannas, and a large scale during last some years amount of carbon containing gases everything people do. for tree plantation in a large scale. in the upper atmosphere and to Prime Minister Narendra Modi Global warming has been the increased amounts of tiny particles appreciated the initiative. Now it is most discussed subject during last in the lower atmosphere. Specifically, important to protect these trees. some decades, but only massive gases released primarily by the drive for tree plantation across the The Maharashtra government’s burning of fossil fuels and the tiny world can help to check the rising initiative in massive tree plantation particles produced by incomplete temperature of the earth. Global is appreciable, as the ground water burning trap the sun’s energy in the warming is the slow increase in the level is deepening year after year. The atmosphere. Scientists call these average temperature of the earth’s deepening water level is due to rising gases “greenhouse gases” (GHGs) atmosphere because an increased urbanization, which is considered because they act like the wrong amount of the energy (heat) striking as a rapid economic and social way reflective glass in our global the earth from the sun is being development, reckless deforestation greenhouse. According to some trapped in the atmosphere and not and utilization of agricultural land studies global carbon emissions radiated out into space. and open spaces for setting up from fossil fuels have significantly residential complexes and business increased since 1900. Since 1970, The global warming is mainly activities. Although, the population CO2 emissions have increased by attributed to greenhouse gases being growth rate is down during the last about 90%, with emissions from created mainly by developments decade, the total head count is rising fossil fuel combustion and industrial worldwide. Global warming has been consistently, for which agricultural processes contributing about 78% linked directly with anthropological and forest land is being utilized for of the total greenhouse gas emission impacts, such as the burning of fossil fuel, excessive emission of

25 Cover Story greenhouse gases, and urbanization. believed to be anthropologically increase of global air temperature. Industries such as steel burn power associated, caused by carbon Therefore, we can say that there is a in a big way to melt steel due to emission and urbanization. The relationship between global increase which extreme heat is being created impact of rapid urbanization on in temperature and precipitation in the atmosphere. Reckless use of climate change is the temperature changes beyond the 1970s. sun glasses and air conditioners for increase caused by buildings and Observed climate change impacts big buildings in cities has added urban activities. This increase in are already affecting Earth's physical fuel to the fire, as the heat is being temperature has an immediate effect and biological systems. Many natural created in the atmosphere. All kinds on the global rainfall distribution. ecosystems are vulnerable to climate of transport services including road The study NOAA-NCDC (2011) change impacts. Climate change is likely to alter hydrologic cycles and weather patterns in many ways, such as shifting storm tracks, increasing or reducing annual rainfall from region to region, and producing more extreme weather events such as storms and droughts. While precipitation trends vary widely over time and area, total precipitation increased during the 20th century over land in high-latitude regions of the Northern Hemisphere and decreased in tropical and subtropical regions. If the temperature and carbon continued to go up uninterrupted, a (Source: NASA) day will come to see oxygen shops transport, water transport and air (National Oceanic and Atmospheric every nooks and corner like mobile transport create heat and carbon, Administration, U. S. Department shops we see today. The rising responsible for rising temperature of Atmospheric Administration temperature of the earth is causing of the earth. and National Climate Data Centre) for irregular rainfall over most parts shows the total annual amount of the earth, reflecting in shortage According to NASA so much heat of global precipitation from 1910 of potable water, deepening is being kept inside greenhouse earth to 2010. The changes in average ground water level etc. The rising that the temperature of the earth is precipitation over the period since temperature also has been uneven going up faster than at any previous 1910 to 2010 are seen on a baseline from region to region, causing for time in history. NASA provides an which does not change over time and extreme heat, cyclone, earthquakes, excellent course module on the which is also reflected in the global deficient or scanty rainfall resulting science of global warming. precipitation averages. A further look in drought, cloud bursting etc. According to the University of East at the data shows more frequencies Irregular rainfall witnessed for heavy Anglia's Climatic Research Unit in of negative precipitation anomalies rainfall or cloud bursting, which the UK, there is a distinctive increase from the 1950 to 1970. Beyond 1970, destroys everything, resulting in in temperature after the last decline the frequent fluctuations between floods, flowing the flood water in the from 1945 to 1973. The somewhat positive and negative precipitation sea and very limited water percolate exponential increase, is strongly anomalies follow the dramatic

26 Cover Story trees take in carbon dioxide and produce the oxygen we breathe. According to the U.S. Department of Agriculture, "One acre of forest absorbs six tons of carbon dioxide and puts out four tons of oxygen. This is enough to meet the annual needs of 18 people." Trees, shrubs and turf also filter air by removing dust and absorbing other pollutants like carbon monoxide, sulfur dioxide and nitrogen dioxide. Trees control climate by moderating Source : sciencedirect.com / University of East Anglia’s Climatic Research Unit in the UK the effects of the sun, rain and wind. in rocks due to reckless deforestation efforts are being made to protect Leaves absorb and filter the sun's being taken place. Some other parts the rain water to percolate in the radiant energy, keeping things cool in of the earth witness for deficient or earth. Reckless deforestation deters summer. Trees also preserve warmth scanty rainfall, resulting in drought water percolation process, while by providing a screen from harsh and very little water percolate. As a tar and concrete roads deter water wind. In addition to influencing result, the underground water level percolation process in urban areas. wind speed and direction, they is deepening year after year. Even Forestation helps for root cracks in shield us from the downfall of rain, if the good rainfall is there, a major underground rocks, which can help sleet and hail. Trees also lower the portion of rain water flows into sea for water percolation in a better way, air temperature and reduce the heat and water stored in reservoirs and helping to maintain underground intensity of the greenhouse effect wells fall insufficient after some water resources. Our concrete and by maintaining low levels of carbon months. tar roads do not absorb water, due dioxide. to which water percolation is not The only way to maintain the Both above and below ground, trees taking place alongside roads. Trees underground water level is tree are essential to the eco-systems. Far alongside roads will help for water plantation in a massive way. Trees reaching roots hold soil in place percolation and also help to cover help for underground rock fractures, the roads from sun heat. This will creating ways for water percolation. also help to reduce incidences of Underground water resources are vehicle tyre bursting, causing for being constantly extracting, but no road accidents. enough water percolation is taking place to that extent. As a result, the Root cracks underground water resources are Apart from helping in hydraulic exhausting very fast. cracks, trees furnish two of life’s The water shortage is due to rising essentials, food and oxygen. demand for potable water, reckless Trees contribute to environment deforestation and urbanization. At by providing oxygen, improving the one side ground water resources air quality, climate amelioration, are extracted recklessly to meet the conserving water, preserving soil, rising demand of potable water, and supporting wildlife. During and at the other side very less the process of photosynthesis,

27 Cover Story and fight erosion. Trees absorb and Trees have supported and sustained store rainwater which reduce runoff life throughout our existence. They and sediment deposit after storms. have a wide variety of practical and This helps the ground water supply commercial uses. Wood was the very recharge, prevents the transport of first fuel, and is still used for cooking chemicals into streams and prevents and heating by about half of the flooding. Fallen leaves make excellent world's population. Trees provide compost that enriches soil. timber for building construction, furniture manufacture, tools, Many animals, including elephants, sporting equipment, and thousands koalas and giraffes eat leaves for of household items. Wood pulp is nourishment. Flowers are eaten by used to make paper. Considering monkeys, and nectar is a favorite of this, we can say that only trees can birds, bats and many insects. Animals save the earth and we need to make also eat much of the same fruit that some deliberate efforts to plant more we enjoy This process helps disperse branches keep many animals, such as and more trees and protect them. seeds over great distances. Of birds and squirrels, out of the reach course, hundreds of living creatures of predators. [email protected] call trees their home. Leaf-covered Views expressed here are personal

The Author is the Sr. Econmicst

Maharashtra Economic Development Council, Monthly Economic Digest 3 August 2016

28 Cover Story Nira-Deoghar Irrigation Project - A Brief Extract of A Study by MEDC of A Uniquely Designed Through Public Community Partnership (PCP) Model for Nira-Deoghar Major Irrigation Project

calling for an immediate, but holistic and broad-based policy response. Not surprisingly, the project sponsor, MKVDC Ltd, one of whose objectives is to utilize to the maximum extent the State’s limited water resources thought it appropriate to assign to the MEDC the task of undertaking such a comprehensive study. Further, it was specified that we needed to explore some creative out-of- the-box solutions, including the f expansion of the irrigation under cultivation is about 22.5 mn. possibility of an appropriate Public Isector is stalled for either Hectares, and only 18% of it comes Private Partnership [PPP] model/s. physical, technical, environmental within the assured irrigation facility. In particular, the PPP framework or fiscal constraints, it will short- Balance of land under agricultural derived its relevance not only circuit in the coming decades operations is dependent on the because it has been in operation in Maharashtra’s ambitions towards vagaries of the monsoon. We, thus, many other infrastructure sectors, economic resurgence in general, continue to carry large downside albeit with mixed record of success, and agricultural development in risks to economic growth prospects but also due to the urgency of particular. We must recognize that all the time. bringing in large capital infusion in slower agricultural growth will short time. Also, it is imperative to In a sense, this Prefeasibility Study not only frustrate the progress of harness the private sector efficiency of Nira Deoghar Irrigation Project the farming community, but also in mitigating delays in the project Under PCP Model is a reflection undermine the stability of the rural implementation. of serious concerns of all the sector and in turn, the overall growth stakeholders about imperatives of “The three irrigation systems potential of the State’s economy. getting off the ground various stalled namely Vir (on river Nira), Nira We, therefore, strongly believe that irrigation projects in the State. In -Deoghar and Dhom Balkawadi expansion and access to irrigation the course of the Study, it has been and their command areas are closely water must assume topmost priority found that steep cost escalations, interlinked with each other. It is, in the evolving new planning and sluggish project implementation and therefore, necessary to carry out development strategy of the State. inadequate budgetary allocations their study together instead of As such, Maharashtra has a very have severely damaged economic looking at them as three independent limited irrigation potential, and and financial viability of several projects. Considering that the scope of which not even one-third has irrigation projects in the State. of work of the present assignment so far been converted into actual And this problem is becoming was limited to finding alternative irrigation. The State’s land-mass progressively intractable, thereby means of taking the Nira-Deoghar

29 Cover Story Project to its intended completion, stressed that the research team was Bank (ADB) to progress further the present study has not looked into by no means restricted to a study with project implementation. this aspect”. of PPP models. Indeed, the terms We must admit that though our brief of reference gave it the freedom to The scope of our project also did was to suggest ways and means to explore other alternatives as well. not allow us to indulge into an overcome the shortcomings in the Accordingly, the Report offers assessment of correctness of costs financing of the project, and our ruminations, discussions and analysis as that may well be a subject of recommendations have more than of the research team with the active another study. As a result, the costs adequately covered all aspects, we and whole-hearted participation of as stated by the MKVDC offices realized that we could also come up officials of MKVDC and MWRRA. are taken as the targeted amounts with game changing solutions which needed for completing the project. Amongst many distinctive features could not only pay for the costs, but The project in its present details of of this Report, what is most also fetch substantial revenues to the cost benefit analysis, beneficiaries striking is its extensive and intensive government. This could be done by and cropping pattern; has adhered research work, discussions and effectively utilizing the land potential. to the technologies and planning interactions with eminent persons We were tempted to go further in practices being followed for the last from the State’s irrigation sector as the matter but the data regarding the many decades. “It must be stated well as various other stakeholders, lands touching the lands acquired that for an investing private project especially farmers and their leaders, for the purpose and also lands proponent, the cost benefits and cooperatives, NGOs, opinion belonging to the government in the accruable sources of income have makers, representatives of Krishi villages through which the canal to be based on newer technologies Vikas Kendras, representatives of passes were not readily available. If of distribution and usage of water selected industrial houses, and so on. this data is made available, a separate and newer allocation to competing The research team has meticulously pre feasibility report covering this sectors such as Industry, Animal sifted through all such massive inputs approach can be made. Husbandry, Horticulture, Food and data, and evaluated various case We, in the MEDC, are greatly pleased Processing and so on. For a project studies as well to generate relevant to see the successful completion of this kind of large investment to international experience in the field. of this assignment of preparing a be successful, urbanization along the It must be pointed out that the NDIP Pre-Feasibility Study. We now look ribbon of water availability may well project has all the required clearances forward to receiving a favorable be advised”. from various Departments of response from the Department of Based on various discussions on Govt. of Maharashtra as well as Irrigation, Govt. of Maharashtra project details jointly by MEDC of the Govt. of India. The project and MWRRA for the subsequent and GIPE with the project sponsor envisages substantial irrigation aspects of this project, namely, [a] MKVDC, it was finally decided capacity covering 43,050 hectares Feasibility; and [b] Detailed Project to work out a model promoting in 157 villages of four Talukas. Report [DPR]. We are confident private initiative in the completion Some part of the project is already that this Report will facilitate in of NiraDeoghar Irrigation Project implemented. But to complete the providing crucible for new ideas [NDIP]. It was further proposed to balance work of the project, the and new direction to transform the phase out the assignment in three Report does well to evaluate various irrigation landscape of the State stages, namely, the preparation of alternative scenarios of PPP model. based on acceptable format of PPP [a] Pre-feasibility; [b] Feasibility; Effectively, it recommends the models. Such efforts would go a and [c] Detailed Project Report framework of Private Community long way to resuscitate and recharge (DPR). Accordingly, the present Participation (PCP) Model and a rural and the overall economy of Report covers all the pre-feasibility scheme of Soft Loan from World Maharashtra. aspects of the NDIP. It must be Bank (WB)/ Asian Development

30 Cover Story EXECUTIVE SUMMARY July 2003], in the completion and Maharashtra Economic • Irrigation, for past four decades of various irrigation Development Council, (MEDC), has played an important projects through private Mumbai in collaboration with role in the rural economy of entrepreneur(s)/ contractor(s) Gokhale Institute of Politics Maharashtra. Irrigation sector, on Build, Operate and Transfer & Economics, Pune (GIPE). like many other sectors in (BOT) basis. However, these Based on the primary discussion government is facing multifold efforts have proved futile given a proposal was prepared which challenges of finance and asset the reluctance of private players phased out the assignment in management. The budget to get involved. Reasons include three phases viz. provided for this sector is meager the low returns from water a) Pre-feasibility and meeting requirements to charges alone, which cover only b) Feasibility and complete the ongoing projects Operation and Maintenance c) Detailed Project Report seems impossible with the (O&M) expenses not capital (DPR) cost. government funding available • The scope and objectives of • In this context, it was decided for the same. work to be carried out in pre- to work out a model promoting • In this regard, the Govt. of feasibility phase are elaborated private initiative in the Maharashtra (GoM) issued in Terms of Reference (ToR). directions for involving the completion of NiraDeoghar ToR consists of broadly private sector through a Irrigation Project (NDIP). The three parts a) Review of legal Government Order of 2003 agreement to this effect was issues and farmer’s involment and [GoM Resolution no.702/ signed between Maharashtra contribution b) Financial viability (425/02)/MP-1, dated 15th Krishna Valley Development and c) Irrigation design. Corporation, Pune (MKVDC); Details are available in concerned chapters. Scope Methodology Review of related (a)Act, law, statutes rules & regulations Study of reference material of state & central Govt. (b)various water resources schemes, reports and policies Assessment of the set of legal, environmental and Interaction with office bearers and eminent persons from infrastructural requirements Irrigation sector perticularly Maharashtra Water Resourse Regulatority Authority (MWRRA). Water balance study of Project in order to assess the Study of the data maintained by Water Resources Depatment quantum of water, sector wise availablity and assessment (WRD) at project level offices of the water from one sector to another in jurisdiction of this project. Exploring farmer’s aspirations towards change in Focus group discussions with farmers, Interviews with the cropping pattern, new orgnizational structures etc. representatives of Krishi Vikash Kendra (KVK) suggesting desirable crop mix. Assessing the possibilites of part contribution by the Focus group discussions with the farmers, in-depth farmers towards the capital cost of the project discussions with progressive farmers community leaders, cooperatives, NGO’s and opinion makers Determining the capital and Revenue Expenditure need Study of the record maintained by Water Resources for the completion of the project (based on project Department at project level offices. proposal prepared by ID) Probing with various industrial associations in order to Interview with the representatives of selected industrial understand the investment milieu houses and industrial organizations in command area and also outside the command area.

31 Cover Story

Scope Methodology Suggesting a proper mix of surplus generating activities I Financial analysis 1) To ascertain the capital cost, cash flow, ways and means by which the long term revenues increases, 2) To identify potential users for the surplus water and power from the project 3) To work out the viable concession period for recovering the private capital cost along with a reasonable profit. II. Irrigation Design The objective of the irrigation design should be to explore and suggest methods to enhance the surplus water. III Analysis of farmers response to the irtroduction of This component will involve the estimation of the impact of irrigation irrigation on decisions of the farmers with respect to a) Crop mix b) Cropping intensity c) Farm diversification IV Prospective interested industries. a) Meetings and in depth interviews with potential clients b) Ideas - Acceptable and implementable for e.g. primary, secondar and tertiary sector V Infrastructure required to attract Agro- Based a) Identification of location in the command area Industries b) Connectivity infrastructure including roads, transport and communication c) Social infrastructure- hospitals, eduction, recreationand housing. VI Identification of possible investors in this The consultant shall take all efforts to find out the possible infrastructure work on PPP investors through advertisements/ personal approach etc Status of the Project • The original project report was prepared in the year 1984, and since then it has been updated twice as shown below:

Items Reports Report -1 (Original) Report - 2 (Revision) Report - 3 (Revision) May 1984 May 2000 October 2002 Irrigable Command Area-ICA (ha) 31,214 41,400 43,050 Water Utilization from the Storage 237 368 368 (Mcum) (75% Dependability) (50% Dependability) (50% Dependability) Cost (Rs. Crore) 61.5 588.7 910.9 • The ICA of the project is 43050 ha covers four Talukas (157 villages). • The project is cleared by various Departments of GoM and Government of India (GoI) and water use proposed at the project is 367.51 Mcum, which is based on 50% dependability. • Two types of irrigation viz. identified and planning is done; • It appears to be difficult to flow irrigation under canal and but co-operative lifts have not propose any diversions of lift irrigation are proposed, come up on the Nira-Deoghar water, as already water proposed comprising four Govt. lifts Right Bank Canal (NDRBC) as for (i) industries & (ii) command covering 13,320 ha and five co- they were originally proposed to. of Dhom-Balkawadi Project operative lifts covering 7,320 Their present form is discussed in first revision, was already ha area. Govt. Schemes are in the following section. dropped in second revision of

32 Cover Story Nira-Deoghar Project (NDP). saving is possible, if the micro the area in early seventies. Some The demands of industries in irrigation is planned instead of of them are still in function. Khandala, and Phaltantalukas OFD-I in the chaks. Hence, one can expect that are already met with from the the farmers will cooperate in Veer storage on Nira River. Legal Issues any participatory project. The farmers during the Focus Group But it appears that farmers are • While assessing the pre- Discussions (FGDs) and during still pursuing the idea of pumping feasibility, the consultants have the survey have confirmed this of water in Khandalataluka looked into the legal aspects observation. from NDRBC to the canal related to water governance of Dhom-Balkawadi. Such in particular and to project • During the survey majority of proposals appear to be difficult governance in general. Various the farmers showed readiness to implement in Maharashtra Acts have been mentioned to participate in WUAs and as (i)all Irrigation Projects are and some provisions therein farmers groups. This sentiment planned independently, (ii) discussed with a view to avoiding among the farmers can be issues related to the diversion further stumbling blocks. capitalized upon for the strong of water from one valley to institution building necessary others will be involved, (iii) • The new experience of Public for successful implementation the existing canal network Private Partnership (PPP) of the project. may not be suitable for such model in MKVDC has a • The farmers have already shifted transfer due to the capacities of bearing over other sectors to cash crops after availability the canals which are designed also of Department of Water of irrigation facility. Majority according to the crop patterns Resources. Hence, people’s of the farmers (about 42%) of the different projects, (iv)it participation in not only expressed their desire to go for is learnt that such proposals are water management, but in the perennial crops like horticulture already studied by the MKVDC, capital cost as well needs to be or sugarcane after having and unless some new aspects emphasized for the promotion assured water supply through emerge, there will not be any and sustainability of irrigation this project. They are ready to need to review them. In this projects in future. cooperate with the companies respect, it is learnt that instead who may come to this area. of left bank canal (21 km) off • Along with Water User • It is true that very few farmers taking from NDRBC at 6 km, Associations (WUAs), therefore, have answered affirmatively farmers are considering for a the consultants have strongly to the question regarding direct canal with a tunnel from recommended promotion of the contribution for capital the left bank-hills. This proposal Farmers’ Producer Companies expenditure. However, during is under study of Nira-Deoghar (FPCs) to guard both-- the FGDs the farmer community Project Division (NDPDn). assurance of water and their had not rejected the possibility However, it is recommend pipe financial interests as well, under of farmers’ contribution. They, distribution system instead of the existing framework of law. in principal had shown readiness open channel system for (i) to contribute towards capital Interaction with primary stake distributaries & Minors and cost. holders (farmers) (ii) On Farm Development –I • The farmers, on an average, have (OFD-I). This will save the • The farmers in the command spent Rs. 194,000 per ha to avail water to the tune of around 71 area have history of cooperative the facility of irrigation. Taking Mcum at Dam outlet. Further culture. Various lifts on this into consideration and cooperative basis were started in

33 Cover Story the experience in the German Financial Analysis in part (4.25% of the invested Project i.e. Minor Irrigation • Balance work of the project amount) as annuity after successful Programme– Maharashtra will be completed within completion of the entire project with (MIP-Govt. of Maharashtra) , it four years from the year of performance audit. The repayment is in the realm of possibility that commencement i.e. starting period will be 11 years including the farmers will contribute to from 2015-16. gestation period of construction. the extent of Rs. 50,000 per ha, • Financial analysis is based on The rate of interest will be 12% per of course this will be achieved the structure of the project annum. through rigorous follow-up and discussed under the title ( awareness creation among the 3) Scenario III: Soft Loan from “Project Governance”. farmer community. World Bank (WB)/ Asian • Two approaches are pondered Development Bank (ADB) Cost Scenario and Irrigation upon: Distinct from first two scenarios, in Design a) Complete the entire balance this scenario Government is expected • The Cost of balance work as in work of the project through to approach the international or 2013-14 with Pipe Distribution Public Private Community national financial institution for for Distributaries, Minors etc Partnership (PCP); obtaining soft loan. The repayment and OFD-I isRs. 1348.4Cr b) Complete one lift irrigation or period will be 50 years. The rate of considering the cost of land as a distributary system through interest will be 4 % per annum. per the new Land Acquisition PPCP as a pilot scheme. bill and assuming that I-head • Under approach b), two works and 20% of flow • In total five scenarios have been scenarios have been discussed distribution work of the project discussed under two approaches. to complete one lift irrigation is completed. • Under approach following three and one distributary with pipe scenarios have been suggested : distribution system as a first • Main canal is proposed with the step. Cement Concrete lining. (1) Scenario I: PPP Repayment • Cost for cooperative lift Model- • Scenario III has been strongly irrigation schemes has not been Under this scenario, it is assumed recommended to complete considered. that government will pay the entire the balance work of the amount to complete the main project as Private Community • Broad plan is prepared to canal and third party bears the cost Participation (PCP) Model. complete the balance work of laying down the network of within four years with the *Report copy available in MEDC distributaries with closed pipe line. assumption that the cost will office The amount invested by the private increase every year at 6% p.a. firm will be repaid in the annual • The Consultant feels that some installments. The repayment period points need to be considered will be 50 years. The rate of interest such as (1) ICA reduction due will be 12 % per annum. to various reasons, (2) provision of pipe distribution in place of (2) Scenario II: Annuity Model- open main canal, (3) separate In this scenario it is assumed that the main distribution pipe line for a Government will invest 70% of the taluka or a group of talukas, and total cost of project and remaining (4) holistic approach for all or contribution (30%) will come from most of the irrigation projects the private sector. Government will in Nira Valley. assure the return of entire amount

34 Cover Story

Ensuring Efficient Use of Water oday, a year after the Devendra in Maharashtra,” he told The Sunday on the completion of its one year, Fadnavis government completed Guardian. He has himself visited 10 the only grievance it had against the oneT year in office in Maharashtra, districts where the work is going on. scheme was that it was not new. “It everyone seems to be talking about was during our tenure that these The goal of the programme for the his flagship scheme Jalayukta Shivar schemes were launched. It is just that first year was water budgeting. For Yojana, which has been appreciated the state has brought it under one the second year now, the government across political lines. But very few umbrella. There is nothing new in wants to focus on ensuring efficient know that the seeds of this flagship it,” said Dhananjay Munde, leader of use of water. programme, which was hugely boosted opposition, Maharashtra Legislative by Devendra Fadnavis and Pankaja The government claims that while Council. But many opposition leaders Munde, lie in a micro-irrigation and they have not been able to keep the have unanimously agreed that the watershed management programme contractors at bay, they have kept their work is proceeding at phenomenal implemented successfully in Pune participation minimum. “Plus checks speed. “No doubt, the scheme is region three years ago. have been put on them by ensuring working well,” said a staff member that payment for their projects is not of Munde’s office, on condition of “When we had conceptualised the made unless the work is declared as anonymity. NCP leader SharadPawar programme in the year 2011, there satisfactory by the respective gram too has appreciated the programme. was no specific name given to it. sabha,” claimed Prabhakar Deshmukh. The idea was to converge different “Yes, we agree there is nothing new water management schemes, and “Also, the tendering system has about the schemes under Jalayukta bring them under one roof. When been transparent in the state due to Shivar Yojana. We have just brought we implemented it in Pune region e-tendering for any project above the the schemes together intelligently, and for two years - 2011-12, 2012-13 - a cost of Rs 3 lakh,” pointed out an have worked hard to implement it on taluka was considered a unit. We had official at the Chief Minister’s Office. ground,” said a senior administrative ensured people’s participation in it,” The one thing the government officer. said Prabhakar Deshmukh, secretary, has done consistently is getting Background Water Conservation and Employment people involved in the planning and “In 2011, the district administration Guarantee Scheme. implementation of the project. It conceptualised a decentralised The same idea has been used for might be one of the very few projects water management programme for Jalayukta Shivar Yojana, which is where people contributed over Rs Pune region. It aimed at creation of an umbrella scheme converging 14 300 crore to get water management decentralised water bodies in rainfed different water management schemes. work done at their villages. From areas, which is the key to making The idea is to create a tailor-made government employees and ministers agriculture sustainable,” Deshmukh programme which suits each village contributing a part of their salaries to said. according to its water budgeting. For big corporates and social organisations the state, the shift from big dams adopting villages, the participation in In two years, Rs 600 crore were to smaller and decentralised water the programme has been immense. spent on the entire programme. This included building series of check structures was a radical one, but a The Maharashtra government has so strong political will is what pushed the dams, involving people in the work. far spent Rs.1400 (Rs 2,053) crore The programme earned quick results. entire machinery ahead. on the project. It has been able to The groundwater level increased by Today, Jalayukta Shivar Yojana has successfully generate 24.59 TMC water 1.5 to 2 meters in the four districts of been validated by none other than storage in 6,200 drought-affected Satara, Sangli, Kolhapur and Pune. India’s water man Rajendra Singh, villages. In fact, the prime criterion who has won this year’s Stock for selecting the village for the project During the implementation of that holm Water Prize. “If done with was the severity of drought for a long programme, the tahsildar was made public participation, by keeping the period of time. the nodal officer and the taluka was identified as a unit. After the contractors away, this programme has Recently, when the opposition success of this programme, the a great potential to replenish water targeted the current government

35 Cover Story JalayukataShivarYojana was chalked people’s contribution. so far uploaded 96,000 digital photos out. online,” Deshmukh said. Secret Of Success Drought Situation Also, third party evaluation of Decentralization of power is the contracts is done from time to time With the state staring at a drought secret of the administrative success to keep a check on the contractors, situation, the main concern was to the scheme has achieved so far. The government officials claimed. solve the question of potable water Collector has been made the captain and provide protective irrigation for of the project at district level. She “The objective of the programme is at least one to two crops. “I designed heads the committee appointed for to make Maharashtra drought-free the programme in November. A GR this purpose, and oversees the work. by 2019. It will target 25,000 villages was thereafter issued on 5 December “We have given complete power to in five years. Till now, 1,20,485 works 2014. In December and January, we the Collector. He is made responsible have been completed in the 6,200 created a village level action plan by to implement the programme. The villages which have been chosen undertaking water budgeting for each instructions are very clear - your in the first phase. In close to 3,000 village,” Deshmukh said. performance will be evaluated on villages, over 4,000 works worth the basis of implementation of this Rs 300 crore were done through The 6,200 villages chosen in the first scheme,” Deshmukh said. And in people’s participation. At some places, phase are the ones which are the many districts, the Collectors seem people lent their machinery, at others, worst-affected by drought. “The two to have delivered. “In Solapur, the they lent their manpower,” said Priya major challenges were insufficient Collector has identified 6,000 old Khan. rainfall and untimely rainfall. We had structures that can be restored. Such to make action plans to ensure that On Field identifications help bring down the there is sufficient water for drinking, cost of the project further, while Complaints have started flowing in for cattle and for protective irrigation not compromising on the goal that about the work given to the contractors. for two crops during major dry spells,” needs to be achieved,” said Priya “But they are very, very few. On the he said. Khan, officer on special duty, Chief background that 1,20,000 works have Meticulous Planning, Continuous Minister’s Office. been completed, 10-15 complaints Meetings have been made,” Deshmukh said. None of the programmes were In January this year, Maharashtra submitted to the state for sanction. The mood on field is positive. decided to allocate Rs 1,000 crore for “We didn’t sign a single paper. We only ChandrashekharChincholkar from the project. 14 water management held division-wise meetings with all Nagpur says he hasn’t seen so much schemes under different departments the district-level officers regularly, to of water in the five villages in Katol, were identified to be brought under sensitise them about the programme,” Narkhed belt for years. “The water the programme. Deshmukh said. level had gone below 500 feet in these five villages. Today, it is replenished to The departmental machinery Maintenance of transparency is 15-20 feet. The villagers can take two spent three months to arrive at the another important factor. The water crops for sure, if not three. There is estimation of works that needed to be budgeting is done in consultation enough water for drinking, for cattle,” done. Simultaneously, the government with the villagers. They are actively he said, showing photographs of formed a committee at each district involved in identifying aquifers and water-filled bunds. He worked with level to look after the planning and working to replenish them. The plans NGO Centre for Rural Welfare from implementation of the programme. In are approved by the gram sabha. Nagpur, to implement the programme the mean time, the state administration Moreover, if a task is handed over in the five villages. held various meetings at district level to a contractor, his work is evaluated to spread awareness about the plan. and cleared by the gram sabha. Only Foot note: During the implementation of the after that, payment is made to the  This article is re-produce from Sunday programme, most of the budget has contractor. Gurdain. The author is the resident editor. been spent on widening and deepening She has written on of Nov. 2015. Through the help of satellite imagery, of nullahs. Over 1,500 kilometres  the government is also working The facts and figures quantities and of nullahs have been widened and to upload photographs of all the figures are updated and are mention in deepened. Of these, the work on 748 completed works on a state-run parenthesis after the original figure.” kilometres has been done through website. “Through MR-SAT, we have

36 Cover Story “We want Chandrabhaga to flow in its pristine crystal natural clear form, restoring its beauty and reviving the life along its holy banks,”

- Shri Devendra Fadnavis, Hon’ble Chief Minister, Maharashtra Clean *Chandrabhaga River Campion

n the west coast of Maharashtra, she bless everyone equally. Pilgrims the life along its holy banks,” said Bhima is flowing very magnificently when set foot in Pandharpur cleanse Fadnavis. At least 200 experts Imaking her unique way in midst their body and soul in the pure and participated in the sessions providing of lofty hills of Sahya also called divine waters of Chandrabhaga. The technical knowledge for executing the as Bhimashankar Hills. From greatest devotee Pundalik was blessed mega project. Bhimashankar Kshetra river flows by Lord Vithal himself by his presence, In his 2016-17 budgets, state finance in the south east direction within the Pilgrims lined up to pay their tribute minister Sudhir Mungantiwar has states of Maharashtra, Karnataka, to this Holy devotee. Chandrabhaga mentioned the project. He said the Andhra Pradesh crossing the long is blessed with divine beauty with its government would make allocations distance of 500 miles i.e.861 km.& magnificent crescent shape its Desert and also seek the Centre’s help for merges into the Krishna river. provide resting place to many great cleaning the river on the lines of Pandharpur is a situated on bank of saints and warmth to all the pilgrims Namami Gange. river Bhima or call also Bhivara, in visiting Pandharpur during their Chandrabhaga originates in the river this place the river takes the shape in journey. Bhima in Pune district. But when it half moon so the river is called in this Chief Minister Devendra place Chandrabhaga also. The River Fadnavis announced the Bhima is called Chandrabhaga some constitution of Namami stories. The cursed Moon bath in this Chandrabhaga Authority, place and he is curse free then the for a comprehensive river are flows in half moon shape so development plan for people called it. Chandrabhaga. Some river cleaning on the lines Researchers thought Bhagwat Skanda of Namami Gange, a pet 5 adhyaya 19th 18th Shloka describe project of Prime Minister entity of Bhagirathi, Chandrabhaga Narendra Modi. in the Hindusthana’s glorious rivers, Fadnavis was on a visit or the mention in same Mahabharata to the temple town Bhishmaparva adhya 9th, also describe Pandharpur. He said, “I take up the reaches Pandharpur, it appears like in Bhima River in Anand Ramayana. challenge of restoring the golden a crescent moon, thus deriving the Lord Shri Ram visiting the same shrine glory of river Chandrabhaga, which name Chandrabhaga. It flows in a 370- outward journey on lanka for his has nurtured our ancient heritage and km stretch between Pune and Solapur beloved Shri Mata Sita. rich culture in its warm cushion.” districts overwhelming thet city. Many great saints have devoted their However, over the decades, this sacred Let’s wait and see the benefits of the life in service of Lord Vithal in the river, which is sacrosanct to lakhs devotees. heart of sacred Chandrabhaga Desert of warkaris — pilgrims who throng * The Bhima River known as to be able to touch live as them, to Pandharpur to worship Lord Vitthal ‘Chandrabhaga River’ especially feel the love of Chandrabhaga is — have been in a state of neglect. at Pandharpur, as it resembles the considered as attaining divinity by all shape of the Moon is a major river Industrial and domestic effluents have the pilgrims (Warkaris). in South India. It flows southeast for badly polluted the river. 861 kilometres (535 mi). Chandrabhaga has an utmost respect “We want Chandrabhaga to flow in in the heart for everyone irrespective its pristine crystal natural clear form, of their caste and creed. Chandrabhaga restoring its beauty and reviving doesn’t differentiate between anyone

37 Global Trade and Investment Trends

Dr Prakash Hebalkar his column focuses on owned arm Antrix (Debleefj#e), the to wireless (radio) Spectrum trends in global trade and second involved Cairn and the Allotment. investmentsT in the past month. third involved Tata Indicom. As Antrix Devas deal one understands the issues, the It has been pointed out In a setback to New Delhi correctly that modern mind boggles at the potential consequences of such a dispute over annulment of the deal Diplomacy increasingly involves between Antrix Corporation, serious peacetime tensions in arising during the subsistence of a TPP-like trade pact with an the commercial arm of Indian negotiating trade and investment Space Research Organisation 1 increasingly common inclusion treaties . This subject is front (ISRO), and Bengaluru-based and center in Donald Trump’s of the Investor-State Dispute Resolution provision favoring startup Devas Multimedia, the election campaign for the US Permanent Court of Arbitration Presidency. On international investor/, including companies, as against contesting national (PCA) tribunal at the Hague free trade agreements like has held the Indian government NAFTA, TPP and TTIP2, a governments even when matters of public policy are at the heart liable to pay compensation to the major concern was brought tune of 40 per cent of investment to the readers’ attention in an of the dispute, should India become party to such a trade made by foreign investors of earlier column and that relates Devas Multimedia. to the Investor Protection agreement either voluntarily or provisions relating to Investor- under international pressure. The 2005 deal, for the State Dispute Resolution and The Antrix dispute involved manufacture and launch their potentially insidious an American company that of two satellites to utilise consequences of superseding negotiated for development the S-band or space band national laws especially relating and use of certain broadband spectrum available to the to environmental issues, communications facilities country, was cancelled in consumer or worker protection, using satellite technology 2011. The Hague tribunal, etc. to be provided by Antrix which addresses disputes in agreements signed under the This month saw three Investor Corporation. The dispute arose after the Spectrum Scam hit rules of the United Nations State disputes relating to India Commission on International making the news. The first the news and at its essence was the manner in which spectrum Trade Law (UNCITRAL), related to the telecom sector passed its order Monday. ...“In and involved the government had been allotted for exclusive use apparently in violation of the UNCITRAL arbitration 1 http://www.gatewayhouse.in/imperatives- between GoI and Mauritius of-regulatory-diplomacy/ July 27, 2016 the government policy relating 2 Transatlantic Trade and Investment based investor s of M/s Devas Partnership. Multimedia Private Limited,

38 under the Indo-Mauritius BIPA should be paid after the “substantial damages, between (Bilateral Investment Promotion annulment of Devas’s rights,” $600-900 million” against it for Agreement), the Arbitral Devas Multimedia Chairman the fall in value of the Edinburgh Tribunal have issued their award Lawrence Babbio said in the head-quartered company’s on jurisdiction and merits on July statement.In September 2015, residual holding in Cairn India 25, 2016,’’ the DoS said. a tribunal of the International Ltd. as a result of severalfactors. Chamber of Commerce in Paris Source: Business Line “The Tribunal has said had awarded Devas Multimedia that GoI’s essential security The TataIndicom dispute “damages and pre-award interest interest provisions of the relates to a contractual agreement totalling USD $672 million”. treaty do apply in this case to between the Japanese investor Source: Indian Express July 27, an extent. The limited liability and the Indian company relating 2016 of compensation shall be to the terms of disinvestment limited to 40 per cent of the The Cairn dispute relates to the by the Japanese company and value of the investment. The apparent imposition of vicarious its violation of government precise quantum has not been liability on a child (subsidiary policy relating to uniform rules determined as yet,’’ the DoS company) for the tax liability on disinvestment by foreign statement said. arguably befalling theoverseas investors at market values3 and parent(company)for profits not some artificial contrived The 2005 agreement was from the transfer of ownership formula. annulled by the UPA of the child to another overseas government in 2011, citing Tata Sons, the holding company person (company). usage of the S-band spectrum of India’s largest conglomerate, for security purposes. The deal Cairn Energy’s dispute with has been ordered by the was called off via a decision the Indian revenue authorities London Court of International of the Cabinet Committee on over unpaid tax dates back to Arbitration to pay $1.17 Security amid the 2G scandal when it reorganised its Indian Billion to Japan’s Docomo after questions were raised subsidiaries before the flotation for breaching an agreement over S-band spectrum worth of Cairn India in 2007.Cairn over Tata Teleservices Ltd., crores being handed on a Energy sold a majority stake in Docomo said in a statement on platter to a new firm. Cairn India, which has lucrative Friday. In return, Tata Sons will oil reserves in the desert state of receive or designate a recipient In a statement Tuesday, Devas Rajasthan, to Vedanta Resources for Docomo’s entire stake in Multimedia said the PCA for $6.5bn in 2011.Source: Teleservices, according to the tribunal “found the Government FT.com statement. of India’s actions in annulling a contract between Devas and Cairn Energy plc could seek a …….While the ruling -- Antrix Corporation Ltd and claim of as much as $900 million representing about half of the denying Devas commercial use from the Indian government purchase price -- is a victory for of S-band spectrum constituted for ‘losses’ caused to it by the Docomo, it would only cushion an expropriation’’. latter’s actions as part of a $1.6 3 RBI has said that the exit price in case of a billion tax dispute, warned a listed company will be at the market price as “With today’s PCA award, determined on the floor of the exchange. In law firm representing the case of an unlisted company, the exit price two international tribunals London-listed company. The should be less than the return on equity as have now unanimously agreed per latest audited balance sheet. Indian government could face http://www.business-standard.com/article/mar- that financial compensation kets/rbi-clears-the-air-on-use-of-options-by-foreign- investors-114010800184_1.html

39 what’s turned out to become one energy storage devices.. The Tesla's partner, Panasonic Corp. of the company’s worst overseas visit of Transport Minister — which has invested $1.6 billion investments. The case went into Gadkari to Tesla’s Fremont, into the factory — is installing international arbitration last California electric vehicles plant machines in sealed, humidity- year amid Indian restrictions on (a repurposed former Toyota- controlled rooms that will start foreign investors ability to sell GM car JV factory) provided making battery cells before the out of their investments in the further relevance to the event. end of this year. country. Tesla Gigafactory located in The factory's name stems from The Japanese phone operator Sparks, NV, on Tuesday, July 26, "giga," a unit of measurement paid 266.7 billion yen ($2.6 2016 that represents billions. One billion) in 2009 and 2011 in gigawatt hour is the equivalent Sparks, Nev. (AP) -- It's Tesla exchange for a 26.5 percent stake of generating one billion watts Motors' biggest bet yet: a in the Indian cellular service for one hour — one million massive, $5 billion factory in the provider. In July 2014, Docomo times that of one kilowatt hour. Nevada desert that could nearly said it exercised its right to double the world's production Tesla says the factory will request a suitable buyer at a fair of lithium-ion batteries. be producing 35 gigawatt market price or 50 percent of hours of batteries by 2018. the acquired cost, whichever Most immediately, Tesla needs That's the equivalent to the is higher. As Tata Teleservices the batteries for its fourth car, entire world's production in continued to post losses, the 50 the Model 3 sedan, which is 2014. Tesla CEO Elon Musk percent was higher. scheduled to go on sale at the end has said the factory has of next year. At a starting price Still, according to Reserve the capacity to produce 150 of around $35,000, the Model Bank of India guidelines, an gigawatt hours if it needs to. 3 will be Tesla's least expensive international firm can only exit To put that in context, New vehicle, partly because of battery its investment at a valuation York City uses around 52 cost reductions. The batteries “not exceeding that arrived at on gigawatt hours of energy per for Tesla's current vehicles, the basis of return on equity.” year. Source: http://bloom. the Model S sedan and Model Source: Bloomberg.com bg/2a7Xina XSUV, are made in Japan. Tata Sons had applied to the RBI [email protected] Tesla unveiled the Model 3 at the to purchase NTT DoCoMo’s Views expressed here are personal end of March. Within a week, stake but the central bank ruled The Author is a Public Policy Consultant more than 325,000 people had that when the put option is and President of ProfiTech, a strategic put down a $1,000 deposit to Consultancy also Member of MEDC Economic exercised, it should be based Digest Editorial Board reserve the car. After seeing that on the prevailing return on level of demand, Tesla moved equity at the time the option its production plans forward. is exercised and not based on The company now says it will a pre-determined valuation. make 500,000 vehicles per year Source: Times of India. by 2018, two years earlier than On the technology front, scheduled. Sustainable Energy was in focus To meet that goal, Gigafactory with the inauguration of Tesla’s construction is proceeding at a Gigafactory to make renewable furious pace. Inside the factory,

40 India - Israel Agricultural Relationship

MEDC Resarch Team

srael is today an industrialized played an Icountry with most of its important part in manufacturing, including many Israel's economy traditional fields, based on intensive for over five and sophisticated research & decades. development and hi-tech processes, Agricultural tools, and machinery. This is the output in 2015 outcome of very rapid and intensive was worth about development not only in the field of $3.3 billion, of technology but in the agricultural which 20 percent sector as well. was exported. and Punjab. Nearly ten India- Today's dynamic, widely diversified Exports brought in seven percent Israel Centers of Excellence for industrial sector was developed less than the previous year, due to cooperation in agriculture have been from small workshops, originally a combination of foreign currency set-up so far. Four more such centers established since the end of the fluctuations (i.e. lower shekel prices) are expected to be established in 19th century to manufacture farm and smaller quantities. The price of 2014-15. implements and process agricultural inputs climbed 10 percent in 2000- India has benefited from Israeli products. 2016, to about $12.2 billion. expertise and technologies in Agriculture represents a 8.4 percent Agricultural Agreement horticulture mechanization, of the Gross Domestic Product and protected cultivation, orchard India and Israel have a bilateral four percent of exports, compared and canopy management, nursery agreement for cooperation in to 30.3 percent of exports during management, micro- irrigation agriculture. Under the bilateral the 2000- the heyday of the famous and post-harvest management Action Plan for 2012-2015, orange. Nevertheless, despite the particularly in Haryana and agriculture cooperation has been decline in its importance relative to Maharashtra. Israeli drip irrigation expanded to seven states including other economic branches, agriculture technologies and products are Haryana, Maharashtra, Karnataka, has grown in absolute terms and widely used in India. Some Israeli Rajasthan, Gujarat, Tamil Nadu

Export of Fresh Agricultural Products (% of value), 2015 Agricultural Output (% of value), 2015

Source: Statistical Abstract of Israel, 2016

41 companies and experts are providing Among all the sectors that Israel the large number of agreements expertise to manage and improve and India are engaged in – both on on cooperation, the exchange of dairy farming in India through their the Government to Government technology, the strategic partnerships expertise in high milk production level and the company to company exchange of professionals and of milk animals in hot climatic level, the two most active ones are the joint ventures that have been conditions and genetic engineering. Agriculture and Water. These sectors established over the last couple of in particular has been borne out by years.

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Israel is being hailed as an “agricultural superpower” across India, a spokesperson for the Israeli Consulate in New York told The Algemeiner, as plans to open up new “Centers for Excellence” in India were announced this week by Israel’s Ministry of Agriculture. Shimon Mercer-Wood, who is also a former political affairs officer at the Israeli Embassy in New Delhi, made the comment in response to an interview given by Agriculture and Rural Development Minister Uri Ariel to The Hindu, in which he revealed Israel’s plan to more than double its agricultural Centers of Excellence in India. According to Ariel, Israel currently operates 13 such centers and, in the next few years, that number will increase to 28. In a visit to India next week, Ariel will inaugurate a new center in Haryana. The announcement comes as both countries seek to bolster bilateral cooperation in the field of agriculture. Israel, with its innovative farming technology, has greatly influenced the agricultural sector in India, stated Mercer-Wood, adding that the Israeli drip irrigation method is a favorite of many Indian farmers. “If you go to the state of Haryana, an important agricultural state, and ask a farmer about Israel, they will say irrigation,” Mercer-Wood said. “The most impressive parts of the agricultural cooperation between Israel and India have been these networks of Centers of Excellence,” he explained. “What these are are demonstration farms where Israeli technology, know-how and expertise are deployed and Indian farmers are brought to learn Israeli techniques to apply in their own farms.” Over the last five-six years, the Centers of Excellence, according to Mercer-Wood, have been very successful and “opened up doors to many parts of India that are more interested in cooperating with Israel.” Israel’s recent decision to double the number of these demonstration farms signals that “the single greatest scale of agricultural cooperation Israel has” is with India. The on-the-ground impact of the Israeli-run agricultural centers on the lives of many Indian farmers has been profound, he said. “The main goal of these farms is always to increase yield. The farmers manage to harvest more crops…fruits, vegetables and high valued crops.” Mercer-Wood recounted how Israel had set up a Center for Excellence in the field of growing mangoes. “This was quite chutzpadik and presumptuous,” he said, using the Yiddish term to describe the boldness of Israeli agriculturalists in telling Indian farmers how to grow mangoes, a national food treasure. After studying typical Indian mango-farming techniques, “The center found Indian farmers were letting mango trees grow to great heights, and therefore the farmers couldn’t harvest the fruit at the top. The simple advice they gave the farmers was to crop the trees and let them grow in breadth instead.” The advice worked, he said, because in the end, “the farmers managed to get a lot more fruit.” However, he added, the Centers of Excellence go well beyond dispensing agricultural advice. “They are also about building relationships, acquiring trust. It’s not enough to tell farmers to cut their trees. They are traditional people and have been farming the same way for many many years,” he said. “Only after building the relationship will they take the advice and benefit greatly. One farmer put it very simply: ‘The tree is like my son. I can’t cut it.’ When those at the center managed to speak to him freely and get him to trust them, only then were they successful in updating the farming techniques.” Mercer-Wood explained that Israel’s growing agricultural ties with India reveal a greater public shift in bilateral cooperation, and have serious political implications, as well. “The relationship between Israel and India has been growing tremendously and steadily for the past two decades. Since establishing diplomatic relations in the early 90s, cooperation in agriculture, defense, trade and more recently technological and scientific research and development, has grown in leaps and bounds,” he said. “In the last two years, all these existing fields of cooperation have been enhanced, and in addition, the relationship has been given a much more salient public profile in the form of high-level visits, most notable the historic first visit of the president of the Republic of India to Israel late last year, as well as a more friendly posture in international forums such as the UN.” The program of Initiating Centers of Excellence in India is gathering steam. This far, 30 such centers were planned. While some have starting operating, work on others is on. Apart from this there has been substantial rise in trade figures in water and agro technologies like horticulture, arid farming, greenhouses and playhouses,

42 irrigation-drip and sprinkler, animal cooperation agreement, it was applied research and the farmers. husbandry, agriculture equipment, decided to establish “Agricultural This function is carried out by the aquaculture, desalination, municipal Centers of Excellence” (CoE), government extension officers water treatment & recycling, water funded by both the Federal Progressive Farmers are conservation & filtration and more. Government NHM and by implementing the technologies Indo-Israel Agriculture Project individual State Governments, that demonstrated at the Centers and act are also responsible to allocate land as role models to other farmers. Introduction and professional manpower. Sustainability- IIAP is a self- Based on Israel's unique expertise Agricultural Centers of sufficient platform in the aspect in Agriculture, India and Israel Excellence of HR, accumulated knowledge & have signed the Agreement for operating capabilities. And there is Agricultural Cooperation in The Centers of Excellence provide a lot more to do that. 2006. This evolved into Indo- suitable platform for a rapid transfer Israel Agriculture Project (IIAP), of technology to the farmers. Conclusion implemented by MIDH (Mission Protected cultivation, drip irrigation India is presently in the midst of its for Integrated Development of and fertigation, canopy management, second “Green Revolution”. During Horticulture) and MASHAV- nursery production, Integrated the first “Green Revolution”, India Israel's Agency for International Pest Management technologies are achieved self sufficiency in the supply Development Cooperation under demonstrated at the centers and later of food grains, an extraordinary the Ministry of Foreign Affairs. adopted by the farmers to increase achievement. While dealing with a high rate of population increase, the issue of food security has become crucial, leading the country to a compelling need to find alternative ways to feed its 1.2 billion people. Throughout the years the State of Israel developed unique expertise and approaches to sustainable agricultural and rural development under semi-arid and arid climatic conditions. Based on these achievements, NHM chose Israel as IIAP's main Goals are: their yields and income. a partner to promote the goals of a. Increasing crop diversity the Indian “Green Revolution”. The Centers of Excellence target b. Increasing productivity both small and large farm holders, Popularly by the name itself the c. Increasing resources use thus offering a wide range of unique concept of “The Centers efficiency agricultural practices in order to of Excellence” under this joint Within this framework, the State enable all to benefit from the new collaborative umbrella provides a of Israel is contributing its best- technologies. suitable platform for a rapid transfer of technology to the farmers. We practices and knowhow, and Applied Research provides hope this co relation would last long. provides capacity building through solutions to the farmers, mapping professional training programs by the challenges and adjusts the MASHAV, conducted both in Israel technology to local conditions. and in India. Field Extension Officers (SMS) To achieve the goals of the the linking element between the

43 Empowering Infrastructure Development Mechanism By Implementing Secured Governance

Mr. N. Vittal nfrastructure is the prerequisite production process, especially services is an essential ingredient Ifor the development of safe drinking water and sanitation, for productivity and growth. If any economy. Transport, basic educational facilities strongly these facilities and services are not telecommunications, energy, water, influence the quality of life of the available in that place development health, housing, and educational people. Infrastructure investment will be very difficult, it will lead facilities have become part and is an important driving force negative effect on the production parcel of human existence. It is to achieve rapid and sustained activities of the economy, which difficult to imagine a modern world economic growth. means lower levels of production without these facilities. These capacity is always leads to the Regions with high infrastructure are vital to the household life as under utilization of the resources, level usually have higher per capita well as to the economic activity. scarcity of goods and services. The income, a smaller proportion of Infrastructure plays a crucial role pursuit of higher level of welfare the primary sector and bigger in promoting economic growth for the citizens of countries in population density. In regions and thereby contributes to the the era of globalization requires having a good basic facilities like reduction of economic disparity and efficiency, productivity and health, educational, transport, deprivations in a country. Greater growth in all spheres of economic communication, water, sanitation, access to education and health activities. A well-functioning energy, housing, etc. it will attract services, water and sanitation, road infrastructure including, electric more investments especially the network and electricity is needed power, road and rail connectivity, small and marginal entrepreneur to bring equitable development telecommunications, air transport, starts their production activities. and social empowerment. It is and efficient ports required for Good transportation, low cost an important pre-condition for rapid growth. Without any of of electricity, availability of sustainable economic and social these either economic production skilled lobar facilities always development. Infrastructural will suffer or the quality of life negative effects on the cost of investments in transport (roads, will deteriorate. One could thus production, positive effects railways, ports and civil aviation), view these activities as essential on production as well as profit power, irrigation, watersheds, and inputs to the economic system. levels. Inadequate infrastructure hydroelectric works, scientific In this respect, adequate and and services become the burden research and training, markets and efficient infrastructure is crucial for infrastructure suppliers, and warehousing, communications and because of its impact on efficiency led the low efficiency of output. informatics, education, health and and growth of other economic Socio-economic development family welfare play a strategic but activities, and in turn, on the can be facilitated and accelerated indirect role in the development welfare of the society. Apart from by the presence of social and process, but makes a significant growth linkages, infrastructure economic infrastructure. It has contribution towards growth by has a direct relationship with been universally recognized that an increasing the factor productivity environment, health, poverty, adequate supply of infrastructure of land, labour and capital in the equity and the general quality of

44 life. The higher affluence of the in its region while nurturing other the unintended consequences developed countries with advanced allied sectors. This methodology of the communication and IT infrastructure bears testimony to aims at creating a self-sufficient revolution covering a whole new this relationship. developmental model with range of threats. The knowledge minimum involvement and revolution about which we are also Underlining the importance of funding from the government. proud has also spawned e-crimes, Infrastructure in the economic Government’s role is majorly terrorism, hacking and other frauds progress of a nation, Dr. P. curtailed to being a facilitator which have no national boundary Sekhar has developed a holistic – monitoring the progress of limitations. His approach to secure infrastructural development projects and development through infrastructure never loses sight of framework under his concept of a pragmatic approach. It lays this aspect. Hence it is inherently “Secured Governance”. Facilitating emphasis over the Private Public robust. balanced and responsive growth Partnership and is in tune with the with convergence of various India needs to urgently bridge the existing guidelines. It streamlines sectors of the economy while infrastructure gaps that industry and promotes efficiency in the giving due importance to their and people face every day. All functioning of the various aspects interdependencies is something policy makers need to be sensitized of a nation’s governance, while at the core of this methodology. and educated about this aspect, facilitating all-round development Development of “Secured which makes Dr. Sekhar’s initiative of the economy and its people. Governance” Hubs and their supremely significant. economic linkages or Techno- Dr. Sekhar has added a new Views expressed here are personal Economic Corridors form an conceptual and vital tool in important basis of the concept. the area of policy and strategic The Author is a Former Central Each Hub as an independent planning which fills a vital gap in Vigilance Commissioner entity, promotes the primary sector our thinking. It takes into account

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aharashtra conoic eelopent ouncil onthl conoic igest ul 45 Safeguarding Borrowers ‘Interest’ in Floating Rate Regime

Mr. Narayanan Somayaji resulted in insulating us safely in to existing borrowers). However, it is he retail housing loan borrower, acocoon against the domino effect unfortunate to observe that though Tin India, is one of the most of the sub-prime crisis faced by the the intention of the RBI may have un organized and un-represented United States of America from 2008 been positive, the implementation entities in the Country. of this intent definitely Though there are blogs leaves a lot to be desired. and forums which may attempt to consolidate To press home this point the views of the retail let me introduce a case borrower, the writer study. Our Mr. Borrower, has not witnessed any who was otherwise pressure group and/ eligible, applied for a or representative forum home loan in 2002. The taking up issues of this banks, in those days, segment, against the oft had a differential pricing witnessed professional between the floating misconduct by the rate of interest (7.75 organized lenders. Early % per annum) versus in year 2000, our banking fixed rate of interest and loans started (9.25% per annum). A witnessing a sea change. differential increase of 150 basis points was My observations on the subject are onwards. That being said, it is felt applicable for fixed rate of interest restricted to this newly unfolding that there is a need to take a closer borrowing on the day when our Mr. scenario especially in the housing look at the role of the regulatory Borrower approached the lender’s loan segment. authority in India, and whether it has representative. The representatives a focused approach to protect the India arguably has one of the of the lending institution would interest of the home loan borrower. highest margin requirements to be also hint that due to the continued provided by a potential borrower, The RBI, with a view to offer economic progress of the country, to obtain a sanction of a home potential retail borrowers the the interest rates were likely to come loan from any financial institution. benefits of any future reduction down drastically in future and hence (In addition there is an exhaustive in the interest rate regime, allowed opting for a loan product carrying a list of eligibility criteria that have our banks to offer loan products fixed rate of interest would not be to be fulfilled by the borrower). carrying “Floating Rate of Interest” such a wise option. He would then The RBI has effectively enforced (simultaneously it also enabled the also convince Mr. Borrower that this requirement, andthankfully lending institutions to utilize this opting for the fixed rate would shut so because the same prudence, loan product and pass on any upward off any opportunity to enjoy the stringent laws and restrictions, movement in the interest rate regime benefits of a fall in interest rates

46 in future. Greed and gullibility Unfortunately, the financial interest when loans are given to combined with advice (largely institutions/banks made merry with a consumer received from the representative/ these loosely worded directives of (ii) The banks are directed that they agent of the lending institution) the RBI. Any tightening of the should decrease the interest drives Mr. Borrower to opt for a loan interest rates in the domestic markets whenever the rate of interest carrying floating rate of interest. were promptly passed on to our Mr. goes down and they cannot take Borrower, and at the same time, the To a layman, it is extremely difficult the plea that the public lending same lending institution laid a honey to comprehend the role of the rate has not come down and trap for potential new customers, Regulatory authority here. The therefore the interest rate is not by offering lower floating rate of lending institution offered to lend being reduced.” interest to the new clients, while an amount of Rs.10 Lakhs to Mr. The Honorable Competition charging a higher rate of interest Borrower at a fixed rate of interest Commission was also forced to from the existing clients who had of 9.25% per annum in 2002, observe that the practice of charging opted for floating rates earlier. They for 20 years, versus 7.75% per prepayment penalties/charges the also effectively created a barricade annum floating rate. It is obvious banks were reducing the choice of to prevent existing floating rate/ that the lending institution would the customer and by doing so the fixed rate interest clients from pre- have sourced funds at such a rate banks were killing the competition paying loans and/or moving to other that ensured some profit is made in the home loan market, and hence lending institutions, by levying a irrespective of the future movement this practice was held as void. penal “PREPAYMENT CHARGE” in the interest rate regime. By no The RBI report of Working from the customer. stretch of imagination, it can be said Group on Pricing of Credit, that the lending institutions were This was objected to as a restrictive dated 10.04.2014, in the Chapter 4 ready to suffer losses for a borrower trade practice before the Competition “Pricing of Floating Rate of Loans who opted to borrow funds at Commission of India, in Case No.s in India – Underlying issues”, has fixed rate of interest of 9.25% per 7/28, 25/28, 8/28, 9/28 and 10/28, made various suggestions, including annum in 2002, in relation to the in the case of Shri V Ramchandra discontinuation of the practice of borrowing of our Mr. Borrower. Reddy & Others V/s HDFC Bank levying prepayment charges on early Hence, it would be safe for me to Ltd. & Others. The order of the closure of loans. Later in April presume that in 2002 the cost of Competition Commission of 2014, the RBI has issued instructions funds for the institution plus its India dated 31.05.2011, is indeed to financial intuitions, effectively administrative expenses and some noteworthy and with far reaching prohibiting them from charging pre profit was adequately covered in the effect. They observed the most payment penalty for early closure of lending rate offered which was fixed evident malpractices adopted by loans. interest bearing. This presumption financial institutions. These are Having seen how the events is based on the fact that in both reproduced below: unfolded from around year 2000 to cases, the funds had to be arranged “By the virtue of Section 27 of 2014, It will be appropriate to place a by the financial institution prior to its the Competition Act, the banks are few observations before the readers: disbursement, and any subsequent hereby directed 1. RBI as a watchdog has effectively changes in the liquidity and/or monitored data regarding loan lending scenario would hardly (i) To stop the practice by which repayment / defaults leading affect this arrangement. Hence, the they charge higher rate of to NPA and has specialized financial institution was bold enough interest to the old borrower and monitoring reports which is to offer fixed interest bearing loan at low rate of interest to the new based on data to be provided by a slightly higher rate for the entire borrower. The banks cannot the banking institutions. tenor of loan. charge discriminatory rate of

47 2. RBI also seeks reports/data by RBI for the continuous In conclusion it is my considered on FEMA related matters to shortchanging of un-organized, opinion that: un-represented retail a) If the RBI is to be unbiased and borrower by organized equally concerned for banks as lenders. well as the welfare of the retail 4. RBI feels it borrower, they should peg appropriate to the maximum rate of interest peg the floating chargeable from the floating rate rates of interest borrower to the fixed rate of with continuously interest offered by the financial fluctuating benchmark institution on the day of lending rates, however, it turns while allowing the borrower to a blind eye to the fact benefit from any reduction in that, (as seen from the the rate of interest by linking it example of our Mr. to the market factors. Borrower) there is also b) The RBI, while introducing a comparable fixed rate “BEST PRACTICES” followed of interest offered by internationally by the financial the lending institution sector, should also ensure that effectively reduce any monitor on the day of borrowing. these new introductions are and act upon any irregularities. Presuming that the financial adequately modified to suit 3. However the RBI did not feel institution, being a business Indian environment. Let us the need to seek reports or entity working for profit, was not forget that we in India still monitor whether there were sure of profitability even if the do not have the practice of any restrictive trade practices client chose the fixed rate of ‘class action suit’ filed against followed by the financial interest. Why are they being malpractices, as is done in the institutions until individuals had to appeal before the Honorable Competition Commission of India against these unfair trade practices. The so called Regulatory Authority felt it appropriate to issue instructions directing the banks to refrain from adopting the unfair trade practice of charging “Prepayment penalty” for early closure of loans. Yet the same authority is silent on the allowed to reap bumper profits USA, and also that our financial issue of refunding the already by pegging future floating ecosystem does not have any illicitly charged “Prepayment interest rate determination threat of punitive action to act as Penalty/Charges” by banks for on some unknown parameter deterrents for the unscrupulous transactions prior to issue of instead of a known parameter financial institutions. these instructions. This speaks viz. the rate of interest offered [email protected] volumes for the concern shown at fixed rate of interest? Views expressed here are personal

48 Maha-Priyatan Tourism : A Major Growth Driver For Konkan Development The Economic Digest is introducing this feature on tourism in Maharashtra. We intend to high light the economic potential together with the needs for MEDC Resarch Team development of tourism Introduction: Mumbai, Raigad, Ratnagiri and Sindhudurg. Of these Mumbai ourism is one of the largest being Metropolitan city inhabited global industries with most of T by people from all parts of India the growing market focused around does not share the character of pristine natural as well as cultural rest of Konkan. While all the other environments. It includes coastal districts of Konkan have a distinctly and marine areas, forts, forests, different character. The older wildlife sanctuaries, temples, etc. inhabitants are Kolis, Agris, Warli Tourism plays an important and vital tribes, Kunbi, Bhandari, Brahmin role in the economic development with a fair sprinkling of Muslims. of the developing country like Konkan is an example of religious India. Its creates opportunities for harmony and mutual acceptance. employment for employment in the The people of the Konkan (Kokani following main service industries as they and their language is called) • Transportation : Airlines, Cruise have adapted to frugal living and ships and Taxicabs hard work. They earn their livelihood • Hospitality : Accommodations mostly by fishing, rice cultivation, in hotels and resorts mango, cashew nut, jackfruit, kokum symphony of waves, prestine dawns plantations and so on. Poverty • Entertainment venues: and economic compulsions have Amusement parks, casinos, and dusks, watching the sun go down at sea, the mystique of starry resulted in urban migration mostly shopping malls, music venues to Mumbai. Virtually every village and theatres. moon lit crests of waves breaking on the beach and many more moos has their connection with their own Tourism can benefit local of nature from the angry storms kith and kin in Mumbai who are communities and government to placid calm. Being by the beach split between the pull of home land through revenue generation and makes us one with nature. and compulsions of livelihood in employment but threaten the the big cities. Festivals then become resource by destroying habitat, Maharashtra is blessed with a long the occasion for all urban Kokanis disturbing wildlife, affecting water and beautiful coast from Dahanu to unite with their roots and people quality and threaten communities to Terekol. The vast expanse of back home. the Arabian sea to the west and by over-development, crowding and The Konkani People are a hearty disruption of local culture. the majestic and green Sanhyadri range to the east provide the natural and festive by nature. Their love Konkan the Pride of Maharashtra. boundaries to distinguish KOKAN for celebration is deeply rooted The coast line always holds a magical from the rest of Maharashtra. It is in their culture and it finds its sway on human minds. The rhythmic made up of 5 districts viz. Thane, expression through the various

49 Maha-Priyatan festivals celebrated throughout excellent beaches, the year. Main festivals are: Diwali, dense forests and Dassera, GudhiPadwa, Ganesh teeming marine Chaturthi, Naralipoornima, Holi, life. Konkan has Nag Panchami and MakarSankranti all the requisites as besides the ‘Jatra’ of their local the ultimate tourist daities. destination. I.e. Sea, Sun, Sand and Surf. Marathi and Kokani are the main indelible mark on the art canvas of languages besides Hindi, Urdu and Maharashtra. Folk art in the villages Forts: The entire area of Konkan is English. Even though Konkani is and tribes of Konkan has its own a hilly region bounded by Sahyadri widely spoken, each region has a rich style and unique history. Some Ghats to the East side and sea to different dialect, pronunciation style, classical arts date back to over the West. For those who have a vocabulary, tone and sometimes, thousand years. Some are tribal special interest in forts and their significant differences in grammar. dance traditionally practiced in history. Konkan is the perfect place In fact the discerning few can place various villages of Konkan. There is to start on an enlightening tour. No the person within his precinct by the also a unique tradition of the dance other coast in India offers such a nuances of his speech. dramas associated with temples. vast choice of majestic forts like Vasai, Khanderi, Underi, Colaba, Konkanand Its Culinary Arts. Its content is drawn from epics Alibag, REvdanda, Korlai, Murud- Each region of Konkan has evolved of Mahabharata and Ramayana. Janjira, Suvarandurg, Ratnadurgh, its own distinct way of cooking. Dashavatar (the ten incarnations of Pratapgad, Raigad, Jaigad, Purnagad, North Konkan has its own way Lord Vishnu) is the most famous VijayDurg, Sindhudurg and many of cooking while the Raigadh one. Fugadidance, Gof, Govinda, more. Murud-Janjira, Suvarnadurg, and Ratnagiri hold their own. Adivasi dance, Bhajan, Keertan, Vijaydurg, and Sindhudurg are sea Further south in Sindhudurg, they BharudJakdi, Naman, Chitrakathi, forts. In recent times, development are perhaps known more by the Pangul, Gaja (Dhangiri dance). of adventure and fort tourism has ‘Malawani’ food than the name of Attractions of the Konkan seen growing interest. Due to the their district. The Konkani cuisine Tourism: Konkan, Maharashtra’s unplanned development of tourism uses Coconut liberally in various 730 km. untouched, serene coastline around the forts, our valuable forms such as grated, dry grated, in the Arabian Sea, starting from historical treasure is wasting. fried, coconut paste and coconut Dahanu and Bordi in the north up milk. A lot of fresh condiments are to Goa proceeding southwards, is Beaches: There are many gorgeous used which have dry Red Chilies and characterized by abundant sunshine, beaches along the Konkan coast. other spices like coriander seeds, Peppercorns, Cumin, Cardamom, Ginger, Garlic … and the list goes on. Some dishes also use Kokum, dried Kokam (Amsul), Tamarind, and Raw Mango (Kairi). Sea food in all its hues dominates the Konkani cuisine. Traditional Art and Craft. Kalsutri Bahulya (Puppets), Dayti, Chitrakathi , Warli Painting and wooden Toys and Utensils have made their own

50 Maha-Priyatan

Most of these beaches are not yet of backwater activities in the region Waterfalls: The high intensity of truly discovered bythe tourists and of Sindhudurg Fort, Tarkarli and the rainfall and Sahyadri Mountains are far better than the so-called Devbaug, Development of Marine combine to provide beautiful popular beaches in India. The 720 km – life sanctuary, Malwani recipes waterfalls. Chinches near Vasari, long coastline starting from Bordi, for sea food are admired all over entire Mashej Ghats area, Savatkada, Maharashtra. Garambi, Nivali, Pandavgat, Peb and Gavlideo are some of the significant Temples: waterfalls of the region. Konkan has the religious milieu Hills Stations: The Western Ghats, and known as blessed by the altitude of the the Land of Sahyadri Ranges, envelop little sleepy ‘Parshuram’. hollows. These petite hill-stations, The various popularized by the British Raj to temples of the beat the Indian heat, are jewels in region attract the the hills. In the mornings, sunbeams religious tourists. play hide-and-seek through the near Dahanu and stretching upto The major temples of the Konkan rolling dawn mist. By afternoon, Terekhol, is endowed with excellent region include Choul, Hariharewar, they are still cool thanks to their scenic locations with coconut Kelshi, Anjarle, Guhagar, Pavas, height. As evening falls, they bundle groves, white sand, safe beaches Parushuram, Chandikadevi, up in blankets of fog, toasty aromas and a lot of varied marine life. The wafting from local Bordi, Adhanu, Kelve, Alibag, pots. Nagaon, Kashid, Kihim, Revdanda, Murud, Srivardhan, Harihareshwar, From north to Bagmandla, Diveagar, Kelshi, Karde south, the Western (Murud), Guhagar, Velneshwar, Ghats rise steep. Hedvi, Ganpatipule, Bhandarpule, Some ranges dip Nevare, Are-Vare, Ratnagiri, Bhatye, straight into the Malvan, Tarkarli, Kunkeswar, Arabian Sea, while Devbag, UbhaDanda, Mithbav, others meander Dhutpapeshwar, Kunkeshwar, Bhogave, Nivati, Sagarewar, around, jumping over waterfalls Malrleswar etc. These temples ShirodaVelegharand Vengurla- and lakes. Each of the major cities enhanced the development of Mochemad are thesome of the in Maharashtra has the bounty of tourism in Konkan. ‘DashaGanpati’ captivating beaches along the a hill-station within a few hours’ (Ten places of Ganapati) is also Konkan Coast. Most of the northern driving distance. a famous tourist attraction in this beaches are the weekend attractions region. There are Mahaganpati Konkan region have two well for the people of Mumbai-Pune – Titwala, Siddhivinayak of know hills stations Matheran: metropolitan region. Nandgaon-Murud, Suvarna Ganesh- t a time when even some of the most UbhaDanda, an absolutely virgin Diveagar, KadyavarchaGanpati – remote tourist places have begun beach of Vengurla, located very Anjarle, Dashabhuja Ganesh Hedvi- to suffer from pollution, primarily close to Goa, is very rarely visited Guhagar, Swayambhu Ganesh due to the increase in vehicles, can by tourists. Waters of Malvan are – Ganpatipule, Jay Ganesh-Malvan, there be a hill station which can lay rich in corals and marine life. For Redi Ganesh – Vengurla, also claim to being totally free of such developing tourism in the area, there Asthavinayak Ganpati of Balaleswar ill-effects? Surprisingly, there is are opportunities like , development – Pali and Varadvinyak, Mahad. one, and it remains free of noxious

51 Maha-Priyatan

en route the pretty tunnels were required to complete city of Ratnagiri, or this railway track. According to move up from Goa, sources the amount of input to places like Malvan. required to construct this line was There are direct buses one of the most difficult tasks from Mumbai (both undertaken to be completed in 20th privately operated century. ‘Konkan railway’ in itself and state transport) is an unparalleled achievement of to different coastal engineering excellence. towns in the Konkan To promote tourism in the Konkan pollutants mainly because no like Ratnagiri, Malvan, region, The Chief Minister of motorized vehicles are allowed on its Chiplun, etc.. You can also enter the Maharashtra DevendraFadnavis tiny roads or the pathways that lead Konkan region from slightly inland recently said that, “the government into deep woods. This is Matheran, cities like Pune and Kolhapur. plans to introduce the Tourism Asia’s tiniest hill station but with Service Bill under the Ease of lots to offer by way of scenic view The New Wonder–Konkan In July1990, this region doing Business initiative. “The points, long treks through forested Railway. opened up with the advent of tourism department needs various areas, and a quaintness of its own. NOCs for which it has to depend Matheran is well connected on several departments. This Act with all modes of transports will facilitate coordination between and very near to Mumbai the departments and ensure speedy and Pune. delivery of NOCs,” he added.A Amobili: at an altitude of special subsidiary company on the 690 m. is the most beautiful lines of the Maharashtra Tourism hill station in the Konkan Development Corporation will be region. It has wildlife and formed for Konkan with the help of dense forests which add to Maharashtra Maritime Board. the overall attraction of the place. the ‘Konkan Railway’. During its The Major weaknesses for Tourists can spend many hours entire course it passes through tourism in Konkan are as follow: angling for fish at HirenKeshi or several rivers, mountains and along picnic at the Nagatta Falls. Mahadev the Arabian Sea thereby making • Lack of entrepreneurship Gad and Naryan Gad forts. A the construction of railway track among the local people drive in the Amobli Ghat is an almost impossible. Once the line • Lack of innovations in the unforgettable experience. A lot could was completed it offered some of locality be done to develop this hill station the spectacular into a favorite tourist attraction. natural scenery Konkan is a perfect destination during its journey. for water sport like Para sailing, As the railway Snorkeling, Scuba diving, Kayaking, line is sandwiched Jet skiing and so on between the Arabian Sea on There are several Reaching Kokan. one side and the ways to get into the Konkan belt. Western Ghats One could drive south from Mumbai, on another,2000 hitting Alibaug, Kihim and Dapoli bridges and 92

52 Maha-Priyatan

• Lack of co-operation from the development of tourism by using • Use of Eco-Friendly natives from the region sustainable tourism development Products: Need of • Lack of analytical data approach. The following are the environmental sustainability, major recommendations for the the focus should be given on • Lack of quality human resources sustainable tourism development the use of eco-friendly products • Psychology of the local people that take advantage of its strengths by the various stakeholders. If • Outmigration towards and opportunities while reducing its strict laws should have shaped metropolitan cities like Mumbai threats and weaknesses. and applied in the locality and Pune • New opportunities: By otherwise sustainable tourism • Undulating physiography of the resurfacing of approach road development will be dream only. region. to UbhaDanda beach from Conclusion: The Konkan region Major Opportunities for tourism Vengurla, it could become an has the strength and opportunities development in the region: excellent tourist attraction. for the sustainable tourism • Development of Eco-tourism, Availability of good quality fish development and the challenges lies adventure tourism, rural at Vengur laharbor, provides in not losing the identity of Konkan tourism, health tourism, etc. excellent opportunities for region while developing the tourism setting up specialty sea-food • Some of the tourist destinations industry. The best model to follow restaurant near Vengurla port. are not yet truly discovered by would be that of “Eco- Tourism” in the tourists. Hence there is a • Hospitality: A few restaurants this ecologically sensitive area. The scope for the development of which will offer good quality locals must se the value and obtain tourism at such locations. Malwani food in a village livelihood by conservation of their ambience could be developed ecological and historic heritage. • Proximity to Arabian Sea can along one of the beaches. enhance ocean tourism in the The tourism must be encouraged locality. • Create viable investment to, “ Take only photographs and environment: At present Major Problems faces by Konkan leave only foot prints” ..tourism in investment in the tourism Tourism ANTARTICA By Dilli Roe! industry in the Konkan region, • Encroachment from the by the government and private Mr. Suresh Ghorpade outsiders in the tourism sector is less as compared [email protected] industry, it may cause loss of the to other states like Goa and & environment and local people Kerala. Promotion should Ms. Sonali Jakatdar will not be benefitted. be given to investment in the MEDC Research Team • Carelessness attitude towards tourism industry by the NGO’s, our historical monuments and Private Owners and should be other treasures. incentivised. It may enhance • Environmental degradation. the potentiality of the tourism “The government plans to introduce the • Projects and constructions industry in the locality. Tourism Service Bill under the Ease of doing Business initiative. “The tourism department which is not in tune with the Lack of • Training Program: needs various NOCs for which it has to depend natural surroundings. trained quality human resources on several departments. This Act will facilitate Recommendations for is harmful for the development. coordination between the departments and Sustainable Tourism Tourists are unable to get proper ensure speedy delivery of NOCs,” Development in Konkan: information on about the - Hon’ble Devendra Fadnavis, Konkan region has great destinations due to unavailability Chief Minister of Maharashtra potential and opportunities for of trained guides

53 Women Enterpreneurs

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55 Women Enterpreneurs

Maharashtra Economic Development Council, Monthly Economic Digest 31 August 2016

56 Women Enterpreneurs

Maharashtra Economic Development Council, Monthly Economic Digest 32 August 2016

57 Entrepreneur of the Month

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59 Publishing date on 5th of Every Month RNI No. 22816/73 Posted at Mumbai Patrika Channel Sorting Office Postal Regd No. MCS/038/2015-17 License to post without prepayment th Mumbai - 400 001 on dated 5 of Every Month WPP License No.: MR/Tech/WPP-245/South/2016

Printed, published & edited by Mr. Suresh A. Ghorpade of behalf of Maharashtra Economic Development Council (MEDC), Printed New Media House, 1, Akbars Villa, Near Old SBI Stop, Marol Maroshi Road, Andheri (East), Mumbai - 400 059. And published from Maharashtra Economic Development Council, Y.B. Chavan Centre, 3rd Floor, Gen. J. Bhosale Marg, Nariman Point, Mumbai - 400 021. Editor. Mr. Suresh A. Ghorpade Maharashtra Economic Development Council, Monthly Economic Digest