POSCO PROJECT IN JEOPARDY

The 12-million tonne steel project in Orissa to be set up by POSCO was acclaimed as the biggest FDI over two and half years back but it seems to be jinxed. From the beginning, it has been facing roadblocks one after another. There was a furore over the company's reported plan to export high grade iron ores and it died down only after the officials refuted such reports.
The site and infrastructure demanded for setting up of a dedicated port at Paradip also ran into rough weather. But the biggest shock the company got when the landowners of the proposed site refused to part with their land. There was considerable media hype that the project would be a boon for the people of Orissa which is one of the most underdeveloped states in India.It was expected by inveswtors as well as the government that people would just lap it up. Instead, organised resistance groups sprang up to protest against setting up of the project for fear of thousands being displaced from their homes and farmers loosing their farmlands.The resistance soon found sympathisers not only among political parties of all hues but also social activists and environmentalists. If one has been following the news reports on agitation that is going on for months, he or she would conclude that the proposed site has turned into a veritable war-zone. Besides regular violence and injuries to protesters as well as lawkeepers, the situation is getting out of hand as people are arming and training themselves to continue their fight against any forcible acquisition of land. Perhaps, the wind of Nandigram has blown to the neighbouring state.
The last straw on the camel's back came by way of the recommendation given by the Supreme-Court appointed centrally empowered committee saying that POSCO should not be given piecemeal forest clearances. It has urged that only after 'considering the ecologicalimportance of the area, number of trees to be felled, adequacy and effectiveness of the rehabilitation and resettlement plan for the project affected persons and benefits accuing to the states', the clearance should be given.
From the hurdles faced by POSCO, it is quite clear that there there has been too many slips 'twixst the cup and the lip. In their anxiety to win some brownie points, both the state and central government have been going gaga over such projects without first tying up the loose ends. The Chief Minister of Orissa has made a bold statement that work at the project site would commence on 1st April, 2008 coinciding with the state's birth anniversary despite such poor progress made by the project in the last two and half years. The first day of April is also used by pranksters all over the world every year to fool people. Let not POSCO steel project provide fodder for April Fool's Day of the year 2008.

Water: Waste Not, Want Not !

Location of steel plants is generally decided upon the proximity to two most important resources – iron ore and coking coal. Surprisingly, the third one – water which is emerging as critical resource is not always given proper consideration. Water scarcity is flaring up often as a serious crisis in several parts of India despite floods ravaging the country for decades. Industrialization has worsened the situation as power and steel plants spring up which are water guzzlers.
Now that India is poised to emerge as the second largest steel producer in the world attaining 180 million tones of annual production by 2016, the crisis of water is going to aggravate with 3-4 mega projects of 6-12 million tones capacities along with dozen of smaller capacities being put on the anvil.
The states rich in iron ore deposits having wooed investors for new steel projects are in an unenviable position. The case of the state of Jharkhand serves best to exemplify. It was reported that 11 companies including Tata Steel and Jindal Power and Steel Ltd have applied to draw water from Subernarekha which has the flow of 1520 million cubic meter (MCM) water against the demand of 1667 MCM. Officials said that nearly 329 MCM is being drawn from the river for irrigation, 220 MCM for potable water and 150 MCM for industrial use.
Indian steel industry’s water usage is abysmally poor. For producing one tonne of steel, according to CSE, steel companies in India use 10-80 cubic meter water where as US plants use only 5-10 cubic meter water. Moreover, approximately 80-85 per cent fresh water used in steel making in India is discharged as effluent although over 90-95 per cent water used for steel making in USA is recycled.
Steel is necessary for development but water is essential for life. For sustainable development, the steel industry in India would have to learn to conserve water and use new technology to minimize its use just as it struggles to reduce greenhouse gas emissions to fight global warming and protect the environment. India’s quantum jump in steel production from 51 million tones to 180 million tones will call for celebration only when the scarce water resources are judiciously used without triggering social conflicts and causing miseries to millions of common man.
It may be recalled that someone had perhaps rightly warned “The Third World War would most probably be fought over water”. Let not steel industry be the villain of piece!

Let Us Make 'Green' Steel

India is already the seventh largest steel manufacturer in the world making 44 million tonnes of steel during the year 2006 and is aspiring to catapult to the second position by the year 2020 with a production capacity of 180 million tonnes. While such targets have caused excitement and euphoria, little has been heard or talked about what impact the massive steel industry expansion would have on the environment.
The whole world has accepted the contention that development should never take place at the cost of environment; it is high time that such issues are discussed and settled here too. Due to stringent environment laws prevalent in USA and Europe, steel units have fallen from grace of general public as one of the main culprits for environmental degradation and have closed down unable to make steel economically.
While India has got an enviable iron ore reserves which ought to be exploited fully for its own economic growth and providing job opportunities to the millions of jobseekers, we cannot afford to turn a blind eye to the environmental issues while planning to boost steel production capacity four-fold within a span of just 12 years.
The environmental damage can be somewhat controlled if steel is brought under eco-labelling umbrella. A license is granted to a product based on a basket of criteria including sources and types of raw materials used, judicious use of natural resources, energy-saving production processes, waste management and the product's bio-degradability. Though the general public is somewhat aware of ISI mark as a sign of quality assurance given by Bureau of Indian Standards(BIS) to a wide range of products such as consumer products, consumer durable products and iron and steel products, it is still not known to many that BIS also issues EcoMark which is an eco-labelling scheme. There are already 16 product categories covered by it which includes electrical goods, lubricating oils, textiles and plastic products but not steel products so far. Interestingly, BIS does not charge anything for EcoMark for those manufacturers who have licenses for ISI mark.
For the sake of protecting environment, let our steel manufacturers produce 'green' steel with with EcoMark labels. Merely making steel to IS specifications will not suffice to vouch for their social responsibility to protect the environment. The new generation steel consumers may insist on buying only 'green' steel as the awareness grows and everyone's 'carbon' footprint is closely watched.

Changing Lifestyles to Fight Global Warming

"The threat of climate change is real and unless we alter our lifestyles and pursue a sustainable model of development, our future will be at peril."
You must have read it - the message was given by Prime Minister Manmohan Singh to his 1.1 billion countrymen on World Environment Day. That he finally turned his attention to the imminent global crisis is surely a consolation to many even as other nations have already taken several measures to reduce greenhouse gas emissions.
In my post 'Global warming: Challenges for The Corporate World', I had touched upon a few steps the corporate world can embark upon to save the planet Earth from unimaginable devastation due to climate changes. As individuals, we too can fulfill our social responsibility in this war against global warming which ironically has been brought about by man himself by his lifestyles with no thoughts spared for the damages they cause to the environment. Experts suggest changes in lifestyles can defer and reduce the severity of global warming. Some of them are:
1. How you go from place to place
The least damage you can cause to the environment in going short distances is to walk down. Cycling may the next best thing to do. For longer distances, public transport should be availed. In case cars are to be used, let the fuel-efficient small cars using bio-fuels be the natural choice and certainly not big cars or limousines which are fuel-guzzlers. Similarly, train journeys will reduce the greenhouse gas emissions several times over compared to plane travel.
2. What are your food habits Organic foods and vegetables should be part of your menu as without use of fertilizers and pesticides, these are eco-friendly. For those having preference of non-vegetarian food, it should be admitted that the environment gets unduly burdened to support the animal livestock.
3.The way you live in your home CFL lighting saves energy by 80% and should replace all lighting by incandescent bulbs. Saving energy is the best way to save the environment. Even using showers instead of buckets of water for baths is a luxury one better avoids for fighting global warming.
4. Keep the family size small Since man is directly and indirectly polluting the environment, less population will automatically bring down greenhouse emissions. So smaller the size of the family, the more 'green' will be its carbon footprint.
Can we really bring about such radical changes in our lifestyles? Perhaps it would need all sincerity and commitment on the part of every individual to make an impact on the environment. It would be indeed a daunting task in a world whose privileged class does not want to sacrifice anything for the sake of benefiting the masses - the empty rhetoric of politicians notwithstanding. Will they ever set examples for others by practicing what they love preaching? The swanky offices and homes of ministers and MPs, the convoys of cars used often for every occasion by them, the traffic snarls (read more pollution) their movements cause are just a few examples to show where a beginning can be made for emulation by others. But that sounds like a pipe-dream.
Is it not?

Do You Believe India's Economy Will Be Second Largest By 2050?

Yes, I do. After all, I am a hard optimist. Why should I doubt the findings of a study that places India in No2 position ahead of USA by the year 2050 especially when the report has been prepared by the internationally reputed Golden Sachs. It had earlier projected India to No3 position just after China and USA by 2032 overtaking Japan.
The sweet music now released also says that India's GDP will quadruple from 2007 to 2020 and the per capita income will increase 35 times by 2050. This will enable Indians to buy cars five times and increase consumption of crude oil by three times. I do not know whether to rejoice at such projections. The scenario of so many cars in congested cities polluting dangerously the already highly polluted environment besides causing other problems is nightmarish and has been touched in my post 'Small cars boom spell urban doom'.
How I wish each word of the projection comes out true by 2050. Many readers may be around then to determine how much of it was realistic and how much was hog-wash. Of course, it is well known that war, natural calamities, epidemics like AIDs and political upheavals may upset the applecart. Nevertheless, I have a wish-list which should materialise preceding what has been forecast by Golden Sachs. My wishes are:
1. India is a strong, vibrant democracy where honest and capable people get elected as their representatives - not by rigging elections, or by use of money or muscle power.
2. India has eliminated hunger and poverty.
3. Every Indian has access to education, health care and social benefits. Cast, creed, language divide created and perpetrated by wily politicians no longer matter.
4.Every village has electricity as well as drinking water and every citizen has a roof over his head
5. Every nook and corner of the country is easily accessible by modern transport.
6. Every citizen is conscious and concerned about environmental degradation and reaches out to do his part to fight air, water and noise pollution.
7. Corruption has been removed from the public life. No one needs to grease the palms of anybody for getting things done.
8. AIDs and other serious diseases have been controlled or eradicated.
9. Women empowerment is visible in every walk of life.
10. Merit has become the sole criterion for advancement and selection in all spheres of life. Political interference, nepotism and sycophancy no longer work. If my wish-list becomes reality, how glorious it would be for India even if the projections of Golden Sachs attain only 50% accuracy.
Is it not?

Small Cars Boom Spell Urban Doom

India is basking in the sunshine for the robust growth of economy and the inevitable consumerism it has spurred by way of higher spending and improved lifestyles for Indians. Car - the ubiquitous status symbol delineating the rich from the poor is expectedly much in demand. The nation's image as the one afflicted with widespread poverty has taken a backseat after 1.3 million automobiles have been manufactured during the year 2006. In my previous posts 'Small Is Beautiful' followed by 'Small Cars Make Big News', I had hinted at small cars becoming cynosure of automobile manufacturers.
The year 2007 may see the launch of over 40 new models - many in the small car segment. The scenario is becoming all the more exciting with the international giants Honda, Toyota, GM and Fiat eyeing small car markets and planning huge investments in India. Their combined committed investment in the Indian automotive sector is reported to be a staggering Rs60,000 crores (exceeding $13 billion) over next 4 years. If this is not enough to celebrate, then the forecast made by Golden Sachs that India will have the largest population of automobiles by the year 2050 calls for uncorking Champagne definitely.
Just wait! We should also take into account what is lurking in the darkness. The Indian cities and towns are, as it is, notorious for endemic traffic jams caused by narrow roads with fast moving automobiles vying with slow moving handcarts and three-wheelers besides bicycles for right of way. The air and sound pollution far exceeds the prescribed safe limits. The road accidents in India are also the highest. So if more and more small cars are made, their highly competitive market may benefit the consumers who will also have the luxury to choose from a wide range of models at affordable prices. But it will spell doom for the millions living in the cities. The car density, likewise, will increase several folds from the measly four cars per 1000 people. The boom in the automotive sector will also generate jobs for a few thousand people. However, the flip side is too catastrophic to celebrate India's boom for small cars. Let the government ensure that environmental damage will not take place and more cars are not going to bring more problems in the lives of people.
Then I would also like take part in the celebrations. How about you?

Ah, Plant Trees And Get Tax Concessions!

You may be thinking that it must be a joke. I, too, accepted the news appearing in Economic Times with a pinch of salt. It says the government or more precisely the ministry of Environment and Forests is contemplating to offer tax concessions as incentive for afforestation. Before you start imagining that your personal tax liability will be somewhat reduced if only you planted trees as per the scheme, let me reluctantly pour cold water on your hope clarifying that the whole scheme of things is for the industry.
Be that as it may, I see a ray of hope of such afforestation scheme bearing fruit as no other palliatives worked better than tax concessions for the industry. The appalling deforestation has been largely the result of rapid industrialisation. Industries polluting air, water and land have been held responsible for the impending catastrophe arising out of global warming. Though belatedly, nations have agreed to abide by Kyoto protocol which offers incentives by way of carbon credits for reducing mainly carbon dioxide gas emissions, many are yet to take initiatives as they find that the benefits accrue only on long term even as spending on emission control measures has to be made initially.
I think this new scheme of giving tax concessions when implemented will get good response because of the indication given by the officials that the compensation could be in the form of land tax concession or providing relief from land ceiling. The ministry, as reported by Economic Times, is proceeding on the premise that the country's forest and tree will cover one third of the geophysical area by 2012.
The irony in the scheme has not been lost. Since industry has been the culprit that has played havoc with nature, it is now being made to undo the colossal damage to the environment. It is a classic example of the saying 'sow the wind and reap the whirlwind'.
Is it not?

Carbon Credits As Sops Sap Poor Nations

The good earth cannot take any more. With reckless deforestation and wanton industrialisation necessitating rapid transportation of men and materials by automobiles causing carbon dioxide emissions ceaselessly, the die has been cast. Global warming is a stark reality now which cannot be wished away any longer. The changing and unpredictable weather all over the world has been serving as a constant reminder of nature's wrath against human excesses.
Now the death-knell has been sounded by the former Chief economist of World Bank, Mr Nicolas Stern, as appeared in Econmic Times, who has warned that 'the impact of global warming on world economy can be as apocalyptic as that of the Great Depression of the 1930s'. He minced no words to depict the horrifying scenario by saying "in the absence of significant cut in greenhouse gas emissions (GHG), the world economy will shrink by 20% in the decades to come. The rising temperature leading to floods may also displace about 200 million people globally."
The irony has not been lost in the report by raising his finger against industrialised countries as the worst offenders of carbon dioxide emissions. Contrary to the popular belief due to misinformation campaign, India and China have been absolved of customary charges of causing global warming. There is already a system of rewarding and punishing parties depending upon their share of reducing or increasing carbon dioxide emissions. I think carbon trading as prevalent now is not a fool-proof control to reduce carbon dioxide emissions. It is just a way of giving sops to the nations which are able to earn carbon credits by reducing GHG emissions so that the cash-rich nations can continue to do the damage by paying penalty in being the credits.
Already as per a survey 'Voice of the People,2006'conducted by Gallup International and TNS, FDIs are perceived by the majority to help the rich only rather than the masses. In the name of economic development, new mega projects are coming up mostly in developing countries. The damage to the environment and the misery of millions who are routinely displaced as a fallout of these projects will more than offset the so- called benefits of employment generation and raising standards of living. GHG emissions, unfortunately, do not affect selectively but pervade everywhere. So the rich as well as the poor will suffer unimaginable losses in the long-term and we will be leaving the planet in much less habitable condition for the future generations.
What a ghastly scenario! What do you say?

How To 'Tide' Over Energy Crisis

As the population explodes and economy expands, energy needs are multiplying on the expected lines. The unexpected answer is provided by what is abundantly available in nature - tide and wind. Of course, the conventional fossil fuel is also a gift of nature to mankind. But its excessive use has not only depleted already the reserves but also cause new problems of global warming. The search for alternative fuels has found that tide can be a dependable and clean energy source. Unlike the destructive power of tsunami which unleashes devastation and death all round, tidal waves can be tamed and transformed to useful energy.
As time and tide wait for no one, India is going to set up its first tidal energy plant of 3.5 MW capacity to generate power in Sunderbans, West Bengal at a cost of Rs 40 crores($0.9 million). Sunderbans has otherwise been known so far for the famous Royal Bengal tiger reserve. In the whole world, India will become the fourth nation to produce power from tide after Russia (400 MW), France (240 MW) and Canada (20 MW).
In a report appearing in Economic Times, the combined potential for tidal energy in Sundarbans, Kutch and Gulf of Cambay has been estimated at a whopping 9000 MW by the Ministry of Non-conventional Sources (MNES).The best part of the proposed plant spreading over 120m wide and 8500m long area is that it would not necessitate human migration nor would it cause any environmental harm.
Can anything be better than this?