EERC Theme: Wetlands and Biodiversity EERC Working Paper Series: WB-4 Economics of Protected Area: A Case Study of Pench National Park Anjali Kulkarni and V M Vaidya Nagpur University, Nagpur Mrunalini Phadanavis Mahila Mahavidyalaya, Nagpur MOEF IGIDR WORLD BANK ECONOMICS OF PROTECTED AREA – A CASE STUDY OF PENCH NATIONAL PARK FINAL REPORT SPONSORED BY INDIRA GANDHI INSTITUTE FOR DEVELOPMENT AND RESEARCH (MUMBAI) UNDER WORLD BANK CAPACITY BUILDING PROGRAMME Principal Investigator Dr. A. P. Kulkarni Head, Department of Economics Nagpur University, Nagpur Co- Investigators Dr. V. M. Vaidya Dr. Mrunalini Phadanavis Retired Professor and Head Head, Department of Economics Department of Economics Nagpur University, Nagpur Mahila Mahavidyalya Nandanvan, Nagpur Research Team Mr. Sarang Bhakre Mr. Prashant Tambe Mr. Babarao Mr. Milind Narnaware P. G. T. D. Of Economics, Nagpur University Campus, Nagpur, 2002 PREFACE Sustainable economic development and environmental protection are the key aspects of modern economic development. Importance of biodiversity conservation through environmental protection and policy of creating protected areas has received worldwide attention as manifested in various conventions on bio-diversity. Bio- diversity conservation has not only ethical and aesthetic implications but also have various economic and social dimensions. These concerns are being increasingly reflected at National and International levels through research and policy programmes as well as related activities undertaken by NGO’s. The present study endeavours to estimate the benefits and cost of P.A. of Pench National Park (PNP) located in central India. This study focuses on rational for creation of protected areas and its direct as well as indirect benefits and costs. It is also an exercise in research methodology where internationally accepted methods like IFRI, TCM etc. have been used for estimation of costs and benefits of PNP. This project has been awarded by IGIDR (Mumbai) under The World Bank Capacity Building Programme. Hon. Chairperson Prof. Jyoti Parikh deserves sincere thank for her valuable feedback at various stages of the project. Our sincere thank also due to Dr. Sudarshan Iyangar who was a guiding sprit behind this work. Dr. Raghu Ram Tata from IGIDR also helped from time to time in the completing this project. The authors acknowledges the facilities extended by the Nagpur University and are grateful to the Hon. Vice-chancellor Dr. A. S. Satputaley, Registrar Mr. S. T. Belsare, Finance Officer Mr. W. S. Kalode and Deputy Registrar (Development) Mr. Puran Meshram and his staff. Our special thanks are due to Shri Ram Indurkar Retd. CCF wildlife, Shri Muzumdar CCF wildlife, Shri Bhagawan, CF wildlife, Shri Chowdhari Deputy CF Wild Life. We are highly indebted to them for their valuable guidance and providing vital information regarding Pench Tiger Project. Deputy C. F. Wildlife, Dr. Jafri, Director Forest Survey of India Nagpur, also deserves special thanks for his willing cooperation and providing valuable information about Pench National Park- Shri. A. R. Khan Dy. Conservator of Forest Research Wing, and Shri B. S. Giri R.F.O. extensively helped during entire project work. We fall short of suitable words to express our deep sense of gratitude for their valuable help. Dr. S. Dwivedi from i Maharashtra Fisheries Development Corporation also willingly extended his help for providing statistical data. ‘SHODH’ the research institute, deserves special thanks for offering consultancy services. The secretary of the institute Dr. Rucha Ghate offered her constructive comments which helped to enrich the quality of work. Our colleagues in the department have been very co-operative in extending all possible help in completion of this project. Dr. Mahore, Dr. Deshpande, Dr. Ghate, deserve sincere thanks for their valuable comments on the research methodology of the project. The research team of the project, Mr. Sarang Bhakre, Mr Milind Narnaware, Mr. Bhushan Lanjewar and Mr. Prashant Tambe spared no pains in bringing this project to the final stage. They need special thanks from us. The non-teaching staff of the department had been very co-operative in extending their helps at various stages on the project. One debt we have to acknowledge, which runs all through this efforts, is that to our family members, who were compelled to bear inconvenience because of our non availability at home and providing us a moral support in completion of the work. They were also a constant source of inspiration to us. Anjali Kulkarni Vijay Vaidya Mrinalini Fadnavis ii CHAPTER I 1.1 Prologue Protected Areas have received a special attention from the cross section of the population for their unique role in biodiversity conservation. Increasingly more geographical areas are being reserved for conservation of natural resources and biodiversity. Bio-diversity represents the very foundation of human existence and a rich source of resources. The loss of biological diversity is causing a major concern all over the world. However, population explosion and changing character of human wants are eroding this very essential capital at an alarming rate. Today, the biological wealth is threatened by an overexploitation of natural resources, resulting in devastation of habitat and ecosystem. In this situational matrix, conservation of biodiversity has rightfully received an impetus in the form of coming into force the Convention on Biodiversity in December 1992. The current debate is centered around demonstrating the economic values of biological resources in the contexts where the values are often not reflected in market process. There is also a need to explain why despite those economic values, biodiversity continues to be threatened. The debate is also concerned about the ways to capture or realize economic value. 1.2 Private & Social Costs of Biodiversity Use: Private costs and benefits refer to those losses or gains as perceived by the immediate user of the environment: the farmer, the industrialist, the consumer. Social costs and benefits refer to the losses and gains that accrue to the society as a whole. Social and private interest often do not coincide. What is good for one as an individual, may impose costs on the rest of the society (externalities). Sometimes what is good for the world as a whole is also good for a person as an individual. But no institution exists to capture the “global value”. 1.3 Biodiversity & Market: The need to declare certain areas as protected areas arises out of the need to conserve valuable natural resources or to prevent loss of biodiversity. Since markets may fail to reflect the benefits and costs of protected area, the need arises to highlight the issues associated with creation of Protected Areas- National Parks or Tiger Projects. 1.4 THE PRESENT STUDY: The present study has been undertaken to focus the benefits as well as costs and other issues related to Pench National Park (PNP) arising from the conservation of its rich natural resources. PNP is considered as a custodian of the valuable flora and fauna, which is representative of this region. ‘It is argued that creation of network of national parks or Tiger Project is a transition from Anthropocentric (human centered) to bio-centric (human as only one element in the ecosystem) philosophy’. Emerging from this philosophy are some radical conclusions drawn by the deep ecologists that intervention in nature should be guided primarily by the need to preserve biotic integrity rather than need of humans.i It is also argued that the Project Tiger, hailed by the International Conservation Community as an example of outstanding success, sharply protects the interests of the tiger against those of the poor peasants living in and around the reserves. This exclusive concept of management of PAs does not take into account the livelihood implications of wild-lands/life preservation. Until recently wild-land/life preservation has been identified with environmentalism by the state and conservation elite. As a result of which the problems which impinge far more directly on the lives of poor- fuel, fodder, soil erosion, air and water pollution have not been adequately addressed. 1.5 Forest of Pench: Pench in Maharashtra was declared as 25th Tiger Project in 1999. It is a magnificent forest and it boasts a healthy population of predators and prey. Previously in 1975, it was declared as a protected area entitled ‘Pench National Park’. Years of protection have paid off and ultimately it was included in the Network of Project Tiger. Project Tiger is committed to the philosophy of total habitat protection, with management practices restricted to reamelioration of the land and selective repair of damage caused by past biotic interference. The Pench Tiger Reserve (blessed with National Park Status of 257.26 sq. km.) derived its name from the river Pench that flows through the reserve in a north- south direction. It is about 67 Km from Nagpur by road on Nagpur Jabalpur National Highway No. 7. 2 The rich diversity of flora and fauna has already found it a deserving place in literature dating as far back as 17th century. The track has been mentioned by several famous naturalists like Captain J Forsythas the high lands of Central India, A.A. D. Brander Wild Animals in Central India and even the famous Rudyard Kipling, author of ‘The Jungle book’. An exceedingly vital ecological zone, Pench is fortunate to be blessed with contiguous forests extending east, north and southwards. The general physiognomy and floristic of the tiger reserve are indicative of two main types of forests- southern tropical dry deciduous teak, and southern tropical mixed deciduous forests. There are, of course, numerous other co-dominants and associates of teak, along with many other species of trees, shrubs and climbers. There is also a great variety of herbs and palatable grasses for the wild ungulates to subsist on. The park supports a high density of mammalian prey-species such as chital, Nilgai, Wild pig and Languor.