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                      ON DAMS, OPTIONS & RELATED ISSUES
SANDRP                                                ISSUE THREE                                                 MARCH 2002
Redesigning the Uchangi Dam:                            FLOOD ISSUES
DAMS                                                    Hundreds of houses submerged due to embankment
Bhakra and Pong dam oustees still not rehabilitated     breach
Displaced and jobless by Upper Krishna Project          Heavy floods in Indonesia
Opposition to Pagladia Dam                              WATER SECTOR
Raising of Periyar dam level ‗a threat to biodiversity‘ Dangers of Water Privatization
Alter Tehri power lines, says SC panel                  WATER SUPPLY
Athirappilly HEP Public Hearing becomes Peoples‘        Bore well scandal in Gujarat
Verdict                                                 BOTTLED WATER INDUSTRY
Madras objected to Cauvery dam even in 1911             Bottled water a major environmental concern
Koyna to be quake prone, say experts                    WATER SUPPLY OPTIONS
SUPREME COURT SENDS ARUNDHATI TO JAIL                   Rajkot has Big potential for water harvesting
SARDAR SAROVAR PROJECT: ANOTHER CHAPTER                 HC on Wetland Destruction in UP by WB
HYDRO PROJECTS                                          WATER POLLUTION
Properties of Maheshwar Project to be sold to recover Concern over pollution in Gulf of Khambat
loans                                                   RIVERS RELATED ISSUES
Maheshwar may be another Enron                          AGRICULTURE AND FOOD PRODUCTION
Delays may upset NHPC's target                          FOOD SECURITY
Higher allocation for hydel Sector                      Food security turns in to food stocks nightmare?
IDBI sanctions Rs 3 B for Baglihar project              SUGAR INDUSTRY SUBSIDIES
Tipaimukh Project                                       QUOTES
SOUTH ASIA                                              POWER GENERATION
Costly KG A starts generation in Nepal                  Massive outlay for power generation
Pak may move World Court on Indus Waters Treaty         31 power projects may not see financial closure
Biological and social diversities                       Delhi to set up power projects in Chhattisgarh
Tarbela gets investment offer                           POWER REFORMS
Pakistan in negotiation with China on Ghazi Brotha HEP Public money must for power sector
Arsenic problem in Nepal                                IDBI not to fund power projects sans LC
Melmachi Affected oppose low compensation               ENERGY OPTIONS
12 people die in water conflict                         World wind generating capacity up
AROUND THE WORLD                                        Small hydel projects need of the hour in Kerala
German opposition to dams on the Danube                 WE AWAIT YOUR RESPONSES
Swiss bank quits Turkish Ilisu dam                      ENRON SAGA
Fresh Protests Over Turkish Dam                         No Guarantee for Dabhol-II
Irreparable Impacts of Belize dam                       FIs warn Enron to return Dabhol stuff
Bujagali Faces Delay                                    ENVIRONMENT
WB attacked for ignoring WCD findings                   HP Villagers help regenerate forests
World Social Forum : Conference on Water                'Save Forest' campaign by WB tribals bears fruit
IRRIGATION                                              WB aid for Chhattisgarh
World Bank funded unviable Guhai Dam                    ABOUT THE UPDATE
Cost overruns, under performance of Irrigation Projects HYDROPOWER PROJECTS IN NORTH EAST INDIA
Big increase in water table due to check-dams           SPECIAL REPORT: Big Dams in North East India
Rethinking watershed strategy

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

DAMS                                                                accelerate the construction work to complete the project.
                                                                    (THE ASSAM TRIBUNE 01/11/01)
Bhakra and Pong dam oustees still not rehabilitated
                                                                    Raising of Periyar dam level ‘a threat to biodiversity’ A
Even after four decades, the oustees of Bhakra dam have             study on the ‗Impact of the raising of water level in the
not been rehabilitated. The Chief Minister of Himachal              Mullapperiyar reservoir of the Periyar Tiger Reserve‘
Pradesh Mr. P K Dhumal said that 56 plots had been                  carried out at the instance of the Chief Wildlife Warden of
allotted to the oustees by the present government during            Kerala concluded that a higher dam would lead to a
January 2002 and 137 more plots will be allotted to oustee          drastic reduction in the wealth of flora and fauna. The
families very soon. He said the state government has                raising of Mullapperiyar reservoir water level from the
taken up the matter of Pong dam oustees with the                    present 136 feet to the proposed 152 feet may reduce the
Rajasthan Government and soon plots will be provided to             population of tigers and elephants in the Periyar Tiger
Pong dam oustees. (THE TRIBUNE 19/02/02)                            Reserve. The proposal would also lead to submergence of
                                                                    the grasslands and marshy land on the lake fringe and
Displaced and jobless by Upper Krishna Project When the             would also endanger the safety of the dam as the dam is
UKP gets completed in several phases, 201 villages spread           in seismically active area. (THE HINDU-D 08/01/02,
across five districts and a part of Bagalkot town will be           19/01/02)
submerged to impound water in the Almatti and
Narayanpur reservoirs. An estimated 80,000 families                 Alter Tehri power lines, says SC panel A committee set up
comprising 4,00,000 people will be shifted to new                   by the Supreme Court in Nov. 2001 to study the impact
settlements to facilitate acquisition of 1,44,000 ha of land.       of a 800 mw transmission line of the Tehri project
It will also affect another 20,000 families who will lose           through 36 Km of Rajaji National Park (one of the
their lands for canals and roads in the command area.               country‘s richest elephant habitats), recommended that
Already 41 villages in the Narayanpur reservoir area and            the power line be shifted eastwards, close to the
60 villages in the Almatti reservoir zone besides a part of         Haridwar-Dehradun Road, to exclude the elephant
Bagalkot town have been shifted. Another 41 villages in             habitat. This corridor is already highly disturbed with two
the Almatti area will have to be evacuated. In all, 135 new         highways, two railway lines, three existing power lines,
settlements or rehabilitation centres have been formed.             and industries such as the BHEL and IDPL. The other
The government claims that the evacuation in the UKP is             three routes that were considered were either through the
''very well planned, organised and systematically                   core area of the park, involved defence land, or meant
executed''. But one fact the authorities cannot dispute is          disrupting an area of rich bio-diversity with rare wildlife.
the large-scale unemployment among the oustees.                     Local NGOs had recently alleged that nearly 500,000 trees
Affluent land-holders, who have parted with their                   would be cut for the transmission lines. The Ministry of
agricultural lands, have managed to remain as land-lords            Environment and Forests had referred to the February
by purchasing alternative lands elsewhere, while scores of          2000 SC order that prohibits removal of trees from
agricultural labourers have become jobless. (DECCAN                 national parks and sanctuaries while revoking in June
HERALD 30/12/01)                                                    2001 the original sanction given for the power lines.
                                                                    Power Grid Corp, which was in charge of constructing
Opposition to Pagladia Dam According to the influential             the Power Lines, had filed a petition in the SC. (INDIAN
All Bodo Students Union, 27 villages of Tamulpur and                EXPRESS-D 19/02/02)
Mushalpur Revenue Circle would be completely
submerged if the Pagladia dam is implemented. The                   Police brutality on Tehri displaced The police have beaten
ABSU leaders have raised a strong argument that since               up the residents of Malidewal, Dobra and Sirain villages in
1968 when the survey for the dam was done, the                      the Bhagirathi valley on January 6th when people were
environmental scenario in the area has undergone drastic            demonstrating against the lifting of the red earth for the
changes making the construction of the dam now                      Tehri dam until their demands were met. 24 of them,
irrelevant. The apprehension expressed by the tribal                including 11 women, were arrested. The protesters were
groups that the implementation of the dam in the present            demanding owner rights of the land that had been allotted
form would completely submerge 70,000 bighas of                     to them in Pashulok, on the road to Hardwar, where they
agricultural land cannot be ignored. The Central Govt.              were rehabilitated. The allotted land is forestland and they
has earmarked a sum of Rs 6 B for the project comprising            fear that they would have to face legal disputes.
a huge dam covering a stretch of 23 km. A sum of Rs 400             (FRONTLINE 15/02/02 & PR MATU 07/01/02)
M has been recently released by the Central Govt. to

SANDRP                                                                                                             MARCH 2002

                          Athirappilly HEP Public Hearing becomes Peoples’ Verdict
In accordance to the Kerala High Court orders, a public hearing on the proposed Athirappilly HEP was convened at
Thrissur on the 06/02/02. Of the 500 plus people who came from all walks to attend the hearing more than 400 were
opposed to the Athirappilly HEP. Sixty people representing the audience presented their concerns / views in front of the
panel and submitted in writing the same. Of these 55 people spoke against the project and only 5 found the dam
indispensable to the state of which 3 were KSEB employees. The local body representatives from 7 panchayats spoke for
the hundreds of thousands of people living along the river both upstream and downstream, clearly stating that the river,
with already having seven dams on it will be seriously affected. This will further shrink the drinking and irrigation water
availability. The violation of right to information was also questioned.
Tribal community from Vazhachal and Pokalappara exposed the baseless and cruelly fabricated data in the EIA, which
says that the settlement is 3 kms away from the proposed dam site, whereas actually it is less than 400m, and within the
immediate impact area. The Pokalappara representative Kanchana painfully described that their settlement will be
submerged in the proposed reservoir. The Chalakudy Puzha Samrakshana Samiti in its detailed memorandum (21
documents) touched upon various subjects. Several scientists and engineers exposed the discrepancies, distortions,
misleading and erroneous information in the project report and TBGRI study.
The Expert warned the panel, that once the riparian forests in the proposed reservoir area is lost, the connectivity
between the upstream and downstream remnants of the original vegetation will be broken resulting in total destruction of
the only remaining patch of riparian forests at such low altitudes. A Fisheries scientist, explained that the situation created
here due to the river getting dry for a stretch of 25 kms from 10 PM to 6 am is a most unnatural phenomena, since it
would curtail any long term adaptations of the flora and fauna due to the stressful condition induced through alternate
flowing and stopping of the river.
Experts and researchers pointed out about the rare species of flora and fauna. The Chalakudy river is one of the fish
diversity rich rivers of India (104 species of which 5 are new to science). As per the affidavit submitted by KSEB in the
Kerala High Court, there is no difference in the flow data from 1942 to 1996 though the Parambikulam group dams and
upper Sholayar commissioned in 1960‘s divert 33tmcft. of water to Tamil Nadu and Edamalayar augmentation scheme
divert waters from Poringal reservoir to Periyar basin since 1992. Also the data shows maximum flow in Poringal
reservoir in 1987-1988, which was the drought year in India. (Chalakudy Puzha Samrakshana Samiti 08/02/02)
SC order on Tehri and avoiding road through Corbett On          government, however, did not agree with Benton‘s
Tehri Dam, the Supreme Court has stated, ―the state will        recommendations. (THE TIMES OF INDIA-D 16/02/02)
file an affidavit indicating its stand on the aspects of dam
safety, environmental impact and rehabilitation of the          Koyna to be quake prone, say experts Koyana in
dam oustees. The state will indicate its stand particularly     Maharashtra, the site of one of India's largest dams, will
on the rehabilitation aspects, stating the step taken in that   continue getting up to five magnitude earthquakes for
regard.‖ In a separate petition, the Supreme Court asked        another three to four decades, researchers have said.
the Uttaranchal Govt. to realign a proposed Garhwal-            (INDIAN EXPRESS-D 07/02/02)
Kumaon link road to avoid its passing through Corbett
National Park. (THE TIMES OF INDIA-D 25/01/02)                  SUPREME COURT SENDS ARUNDHATI TO JAIL On
                                                                March 6, Supreme Court bench of Just. Pattanaik and
Madras objected to Cauvery dam even in 1911 Tami Nadu           Just. Sethi sent Arundhati Roy to Jail and also imposed a
counsel on Cauvery Waters Dispute Tribunal told tribunal        fine of Rs. 2000/-. Arundhati said she stands by whatever
that the erstwhile Mysore state had proposed a 124 feet         she said. Media and commentators across the country and
high Krishnasagar dam to store 45 tmc of water in 1911,         outside came down heavily on this judgement. Hundreds
but the then Madras state had objected. The project as          of supports of Arundhati camped outside Tihar Jail till
proposed by Mysore would lead to its failure every three        she came out on March 7. At a jam packed press
years in a block of 20 years and adversely affect irrigation    conference on March 7, beamed live across the country,
to an area of nearly 50,000 acres in Mysore itself – an area    leading national media and public personalities including
accounting for one third of irrigation land in Mysore. The      Vinod Mehta, N Ram, Prabhash Joshi, Ajit Bhattacharjee,
then inspector general of irrigation, Sir John Benton had       Praful Bidwai, Medha Patkar and Prashant Bhushan paid
also noted that the dam over a period of time would             tributes to Roy and demanded removal of criminal
accumulate a large quantity of silt. The Mysore                 contempt powers of the unaccountable higher judiciary.
SANDRP                                                                                                            MARCH 2002

SARDAR SAROVAR PROJECT: ANOTHER CHAPTER                             displaced people were resettled as per norms as that
                                                                    would entail violation of human rights and also violate the
SSP Submergence Area, Affected Population Go Up NCA                 orders of the SC. The signatories include Kuldip Nayyar,
officials agree that the violation of the legal norms is            Surendra Mohan, Mohini Giri, Shanti Bhushan, Admiral
apparent from the fact that people to be affected by                Ramdas, Rajendra Sachchar and Swami Agnivesh. Former
increase in dam height from 90 M to 100 M as being                  SC judge, Jst Krishna Iyer, in a separate letter to MP CM
pushed by the authorities were to be resettled by 31st              has expressed surprise that "your Govt. is party to raising
December 2001 and this has not happened with hundreds               the dam height from 90 M to 100 M. This will be
of families officially balance. Officials confirmed that the        inhumanity in the absence of alternative provision for
MP Govt. has admitted that submergence area has                     land. This would be injustice, violation of the order of SC,
increased by 2703 Ha (12.75% increase) while the number             which may entail serious consequences‖. He urged CM to
of affected families in MP has increased from 33014 to              "stop construction beyond 90 M".
35716 and will surely increase further by ‗few thousands‘.
                                                                    Legal notice to Sub Groups of NCA NBA has issued legal
CAG Reports overpayment and financial loss As per the               notices to the R&R and Env. Sub-Groups of the NCA for
latest report of the Comptroller and Auditor General, the           dereliction of the duty in having failed to ensure proper
Sardar Sarovar Narmada Nigam made overpayment of Rs                 resettlement of affected families and ensuring proper
35.1 M and also paid price escalation by incorrect                  studies and actions on env. aspects of the project. The
application of indices. The Company's failure in securing           notice also warns the Sub-groups from sanctioning any
a valid bank guarantee and undue granting of advance has            further construction, as this would imply the violation of
exposed the Company to loss. In addition, the objective             the resettlement laws governing the project and also
for which the expenditure was incurred has also remained            constitute contempt of Supreme Court directives.
unfulfilled. Investment of Rs 9 M towards the
construction of residential quarters for accommodating              SSP dharna in Delhi About 1000 tribals and farmers of
specific service staff remained idle due to vacant quarters.        the SSP staged a dharna on 7-9 Feb. in front of Ministry
                                                                    of Social Justice and Empowerment, demanding that
MP CM agrees to withdraw SC case on SSP height                      further construction on SSP be stopped before proper
Following the meeting called at PM's intervention on                rehabilitation of affected persons according to NWDT
January 24, MP CM assured to withdraw the case from                 award and Supreme Court. ―The protest is in the context
the Supreme Court pertaining to the height of the dam.              of the PM‘s directive to complete the rehabilitation of at
States to look possibilities of ‘amending’ NWDT award               least 3,000 families who have been affected by the dam
The three-state committee to look into the possibility of           but have not been resettled. Over 4000 families will be
amending the Narmada Water Distribution Tribunal                    affected if the height of the dam is raised from the
Award for allowing MP to give cash compensation to the              present 90 M to 100 M. The dharna ended after the
SSP oustees against the land they would lose has failed to          Minister informed the people that the R&R subgroup had
arrive at any final solution on the issue. A senior official        not given any permission for further construction on SSP.
said, "Of the 3,000 MP oustees at the SSP dam level of
                                                                    Doubts over raising dam height "The NCA's R&R sub-
100 M, 1,043 were to be given land by December 31. So
                                                                    group, which met on Feb. 8 in Delhi, decided that MP
far, MP has given land to a mere 14 families. As for the
                                                                    finish its resettlement work by March-end", said an
rest, even the award has not been declared, not to talk of
                                                                    official. Contrary to the claim, officials clarified, at best,
acquiring land." Officials consider this a clear violation of
                                                                    the dam could be taken to 95 M early March onwards
the SC directive. Gujarat has agreed 'in principle' to allow
                                                                    'provided MP finishes the resettlement work of those
MP to give cash against the land to the oustees (sans
                                                                    families that would lose their land at the 95 M level'. At
amending the NWDT award), and set aside Rs 2.39 B for
                                                                    the 95 M level, too, things are proving to be 'quite
that. A govt. resolution to make cash compensations has
                                                                    difficult'. "Even the land acquisition process of the
'not been put out' by MP despite umpteen promises. MP               villages that would go into submergence at that level has
is finding a pretext to evade rehabilitation: amend the
                                                                    not begun. Nor is MP providing any detail of the number
NWDT award, lest no progress would be made,
                                                                    of families to lose land at the 95 M level‖. (CAG Report
something Gujarat finds difficult to accept.                        Gujarat, commercial 2000, THE HINDUSTAN TIMES-D,
                                                                    INDIAN EXPRESS-D 08/02/02, THE HINDU-D 07/02/02,
PM urged to review move to raise dam height Several
                                                                    10/02/02, THE TIMES OF INDIA 06/01/02, 26/01/02,
eminent persons have written to the PM to reconsider the            13/02/02, NBA PR 19/01/02, 06/02/02, 08/02/02)
decision to raise the height of the SSP even before all

SANDRP                                                                                                               MARCH 2002

HYDRO PROJECTS                                                    capacity addition," NHPC sources said. Almost a dozen
                                                                  projects have been pending with the government for
Properties of Maheshwar Project to be sold to recover
                                                                  clearance at various stages for the last 18 months, some
loans It has now become evident that the S. Kumars have
                                                                  projects were awaiting the clearance of Cabinet
once again willfully defaulted on public money and this
                                                                  Committee on Economic Affairs while others were at the
time around the consequences are disastrous for them.
                                                                  stage of Public Investment Board's consideration. (THE
The S. Kumars group company – the Induj Enertech                  ECONOMIC TIMES 05/01/02)
Limited, which has defaulted on the outstanding
payments of Rs 190 M out of a total tranche of Inter-             Higher allocation for hydel Sector The Ministry of Power
Corporate deposits of Rs 450 M taken from the MPSIDC              has made higher budgetary allocation for the hydel sector.
in 1999-2000 for the purpose of financing the Maheshwar           NHPC is giving priority to languishing state sector
HEP. Following the default, the MPSIDC has now                    projects and levy of 5 % development surcharge to
directed that recoveries against the defaulted sum are to         supplement resources for HEPs, said NHPC Chief. He
be made from the properties of the Maheshwar Project in           said the CEA had prepared a vision paper on
the Khargone district of MP. It has directed that this            development of hydroelectric potential, which envisaged
recovery be made through the attachment and sale of               harnessing of the entire balance hydropower potential of
properties. The MPSIDC has begun legal proceedings for            India by the year 2025-26. During the 10th and 11th plans,
the recovery of this amount and has asked the district            the vision paper envisaged a hydro capacity addition of
administration to make the recovery from the moveable             10,400 MW and 21,300 MW, respectively. The
and immovable properties of the Maheshwar Project.                requirement of the funds for this capacity addition would
This legal action has now put a grave question mark on            be of the order of Rs 1 300 B. (THE TRIBUNE 08/02/02)
the future of this Project. (NBA PR 21/01/01)
 Maheshwar may be another Enron In 1994 before the               India ranks 5th in hydropower potential India ranks fifth
privatisation, the cost of the Maheshwar HEP was                  in the world in terms of hydropower potential as per a
estimated at Rs 4.65 B. After privatisation, the estimated        report prepared by NHPC. At 600 B kilowatt-hours of
cost has increased almost five fold to Rs 22.31 B.                energy annually, India‘s HEP potential is equivalent to a
According to its project report, it will generate power at        nameplate capacity of 1,50,000 MW, out of which 17 %
an average plant load factor of less than 25 per cent, out        has so far been developed. The power demand
of which 80 per cent will be produced during the                  projections made in the 16th electric power survey would
monsoon months when power is least needed. The                    require a need based capacity addition of 55,000 MW and
average cost of power from the project will exceed Rs. 6          52,000 MW respectively during 10th and 11th plans.
per unit at the dam site. Maheshwar power during the              (DAILY EXCELSIOR 24/01/02)
period where it may be needed will cost well over Rs 10
                                                                  IDBI sanctions Rs 3 B for Baglihar project The Industrial
per unit. In the last four years, there has been a
                                                                  Development Bank of India has sanctioned Rs 3 B for the
procession of foreign collaborators for Maheshwar
                                                                  450 MW Baglihar HEP in Jammu and Kashmir being
Project who have come and gone, after the financial and
                                                                  constructed at a cost of Rs 46 B. IDBI sources said that
social nonviability of the project has been brought home
                                                                  the process required for sanctioning of term loan of Rs
to them by the relentless campaign of the NBA. They
                                                                  26.67 B, of which Rs 3 B have been sanctioned. (The
include the US power utility Pacgen, the German power             Economic Times 09/01/02)
utilities, VEW Energie and Bayernwerk and finally
another US power utility, Ogden. Even the proposed                Tipaimukh Project Manipur, which had opposed the 1500
equipment suppliers, Siemens and ABB, had to bow out              MW Tipaimukh power project, has finally decided to sign
because of the refusal of the German and Portuguese               the MoU with the NEEPCO. The NEEPCO official
govts to provide the necessary guarantees. The result of          claimed that the dam would affect eight villages in the two
all this was that out of the total estimated cost of the          districts, of which three would be completely submerged.
project, the total private investment came to be limited to       The firm power of the project would be 411 MW. The
S Kumars equity of Rs 1.36 B (about 6 % of the cost of            revised cost of the project with interest is Rs 63.51 B. The
the project). (THE HINDUSTAN TIMES-D 02/02/02)                    project has to be completed within 10 years and, by that
                                                                  time, the project cost could rise up to Rs 88.67 B. (THE
Delays may upset NHPC's target Delays in government               TELEGRAPH-NORTHEAST 01/02/02)
clearances have crippled several of NHPC's projects
involving 10 000 MW capacity, affecting official target of
adding 100 000 MW by 2012. "After August 2000
government has not sanctioned even a single MW of
SANDRP                                                                                                           MARCH 2002

SOUTH ASIA                                                         been unable to harness the full hydel potential. On
                                                                   Pakistan threat to move International Court of Justice on
Costly KG A starts generation in Nepal On 24 Feb. 2002,            ―breach of treaty‖ he said, ―Let Pakistan go there, it will
electricity generated by one of the project's three 48 MW          get exposed.‖ (THE HINDU-D 21/02/02)
turbines of Nepal's newest and largest HEP, Kali Gandaki
A was connected to the national grid. The initial cost             Biological and social diversities A public discussion was
estimate for the project was NRs. 25 B, the project was            held at Multan on the issue of development-induced
delayed by two years and the final cost went up by 48 %.           challenges to biological diversity. Farmers, political and
 In comparison, several small-scale power projects                social activists at Multan, denounced the proposed Thal
have also started to come on line but at a cheaper cost. A         Canal and Gomal Dam with particular reference to
24 KW hydropower plant at Gaudi Khola in Baglung,                  already completed Chashma Right Bank Irrigation
which started generating power, will provide electricity to        Project, for jeopardising biological and social diversities.
250 households of Dudilabhati VDC. This project has                Prof. Akram Mirani demonstrated that ecology is a chain-
been completed at a total cost of NRs. 31,02,000.                  like correlation of living communities, including man,
 Similarly, last month the Rs. 19 M Syange                        which have positioned themselves according to their
Hydropower project (183 KW capacity) supplied its first            needs, habits and interdependence. Ustad Ejaz Khan
unit of electricity to the national grid. The 3 MW Piluwa          from Khansar, discussed the importance of local
Khola project is due to start generating power in April.           biological diversities with particular reference to threats
This project will cost US$ 1,200 per KW compared to                posed by Thal Canal. The speakers emphasised that
US$ 3,300 for Kali Gandaki A.                                      biological diversity shapes social diversity i.e. the diversity
 NEA cancelled its agreement of Oct. 2001 with the                of human knowledge, expression and processes, which
Singapore based Elysee Frontiere Trust, to develop the             synchronise themselves into a culture. (PR From
300 MW Upper Karnali Project, because the company                  DAMAAN, Pakistan, Dec. 27, 2001)
failed to show its financing sources.
 Similarly, even after five years of effort, Snowy                Tarbela gets investment offer A US-based energy firm has
Mountain Engineering Company has not been able to do               offered to invest $30 M for the refurbishment and
anything with the proposed 750 MW West Seti Project                upgrading of four power generation units of the Tarbela
because it still has not been able to sign a power purchase        Dam project, Pakistan Power Ministry sources said. The
agreement with India's State Electricity Board.                    company is also pursuing two HEPs of $1.3 B including
Construction of the US$1.2 B project, designed to sell             84 MW Matiltan Power Project in the NWFP at a cost of
electricity to India, was supposed to have started in 2002.        $135 million and 700 MW Kohala Power Project in Azad
India has agreed to purchase the electricity at 5 cents per        Kashmir at a cost of $1.2 billion. (THE DAWN-
                                                                   PAKISTAN 06/02/02)
unit but SMEC wants more. (Spacetime Dainik-Nepal
16/02/02, Kantipur Daily-Nepal 25/02/02, Nepali Times 22-          Pakistan in negotiation with China on Ghazi Brotha HEP
28/02/02 & Nepal Samacharpatra 24/02/02)                           WAPDA was in negotiation with China East Power Co.
Pak may move World Court on Indus Waters Treaty The                on taking over the Ghazi Brotha HEP. Since Sept. 11
Pakistan Government might move the International                   incident, the Italian contractor has given up the
Court of Justice against India, which, it alleges, had             construction. WAPDA hoped that the Chinese firm can
violated the Indus Basin Treaty by building reservoirs on          take over the remaining parts of the project. The 1450
the Chenab, said an official of Pakistan. The official said,       MW dam was planned to be completed by August 2001.
water discharge into the Chenab was abruptly reduced               But the recent incidents has not only the delayed the
from 5,700 cusecs to 3,900 cusecs. Later, the water inflow         completion date, but has also raised the cost of
was reduced constantly below the average level. The                construction. On the other hand, Chinese President has
official said Pakistan would continue its efforts to impress       signed contract with Pakistani President on 7 construction
upon India to stop work on the Baglihar project. But if            projects, including a 1,500 kV power transmission project.
                                                                   (CHINA ELECTRICITY NEWS 01/01/02)
Delhi refused to wind up the project, Islamabad would
approach the ICJ. He said Pakistan felt that India might           Arsenic problem in Nepal Based on the investigation
be diverting water to some canals near Akhnor in                   carried out so far, 1.9 M people in Nepal are using water
Kashmir in violation of the treaty, and storing the water in       with arsenic of 10 mg/litre and about 390,000 with 50
the Salal Dam in Jammu. (THE TRIBUNE 13/02/02)                     mg/litre. A study report shows that 20 districts in Nepal
 CM asked for Review Indus water treaty The J&K                   are using groundwater sources containing arsenic. The
Chief Minister, said that the Indus Water Treaty between           findings show that about 20 % samples have arsenic
India and Pakistan should be reviewed as the State has
SANDRP                                                                                                              MARCH 2002

contamination of between 10-50 mg/1 and 5% have more              the House of Commons, will condemn a branch of the
than 50 mg/1. (KATHMANDU POST-NEPAL 05/02/02)                     Department of Trade and Industry for looking at a US
                                                                  $99 M finance application for the Yusufeli HEP on
Melmachi Affected oppose low compensation With the                northeast Turkey's Coruh river. British engineering firm
affected people refusing to accept the accorded                   Amec first requested Export Credit Guarantee
compensation, the construction work of the Melamchi               Department backing for the dam in 1998. Campaigners
Project has come to a standstill. The affected people of          say the 540 MW dam--which would entail a dramatic
Melmachi Project in Nepal recently lodged a complaint at          reshaping of the local topography--would displace tens of
the Home Ministry saying that they would not accept the           thousands of the area's Georgian minority, disturb a
compensation amount set by the govt., as it was too low.          diverse range of wildlife, and adversely affect monuments
They appealed to stop the construction work until the             from the medieval era. "A minimum of 30,000 people
compensation matter was settled. The Home Ministry                stand to be directly or indirectly affected by the dam,"
sources said that the ministry is now planning to study the       said Kerim Yildiz, executive director of the Kurdish
problem. (THE KATHMANDU POST-NEPAL 09/02/02)                      Human Rights Project, which has been active in protests
                                                                  over previous dam projects in Turkey. ECGD's role in a
12 people die in water conflict 12 people have died in
                                                                  separate Turkish project--the Ilisu dam, which won the
water conflict in southwestern Baluchistan province in
                                                                  personal backing of PM Tony Blair despite concerns over
Pakistan. The conflict started between two groups for
                                                                  the impact on some 50,000 local Kurdish residents--was
irrigation water and after some time it turned in armed
                                                                  called into question last year when British construction
battle. (RASHTRIYA SAHARA 27/02/02)
                                                                  firm Balfour Beatty, with the main stake in the joint
AROUND THE WORLD                                                  venture, pulled out. ( 22/01/02)

German opposition to dams on the Danube The                       Irreparable Impacts of Belize dam Scientists from the
SPD/Green coalition declared itself in favour of a                Natural History Museum in London conducted an EIA of
Danube with no further dams or canalization, following            the proposed dam, which is scheduled to start
the expert hearing of February 20th. This is a clear              construction in Belize in Central America. In their official
decision of the parliamentary majority in favour of the           report, the researchers say that the Chalillo dam would do
"A" solution for the improvement of the navigability of           irreparable harm to one of the most biologically rich and
the Danube. This will keep the Danube free flowing                diverse regions left in Central America, and they "highly
between Straubing and Vilshofen and respect the priceless         recommend" that the scheme be dropped. The proposed
floodplains of the area. This decision will enable the            35-metre dam is to be built on a remote stretch of Belize's
Danube to be developed in an ecological way. The "A"              Macal River and produce electricity for the surrounding
solution, respecting the river structure, can also be             provinces. It would flood 11 square km of the river's
implemented very quickly, is the cheapest solution, and is        pristine forested flood plain in remote mountains near the
the only one to be compatible with European legislation.          border with Guatemala. (New Scientist 19/12/01)
                                                                  Bujagali Faces Delay AES Corp., a US power company
Swiss bank quits Turkish Ilisu dam Switzerland's largest          facing a cash crunch, said a financing shortfall will delay
bank UBS said yesterday it was pulling out of its mandate         construction of a dam in Uganda, only two months after
to advise on the financing of a controversial Turkish dam         the company won World Bank backing for the $550 M
because of fears about the dam's social and environmental         project. The delay in the Nile River project – East Africa's
impacts. "The decisive factor behind this termination is          largest investment ever – comes after AES overruled
that the general progress of the project has been                 years of protest by environmentalists, who questioned the
unsatisfactory in recent years," UBS said in a statement.         cost of the dam and its potential to deliver power to one
"Until now there has been no definitive decision on what          of the world's poorest nations. The Swedish Export
accompanying measures are to be taken to minimise the             Credits Guarantee Board, an agency known as EKN,
social and environmental impacts of the project," it said.        refused AES's application. (IRN PR 22/02/02)
(REUTERS NEWS SERVICE 28/02/02)                                    WB attacked for ignoring WCD findings The WCD
                                                                  report was issued in November 2000 with 100%
Fresh Protests Over Turkish Dam The British government            consensus, and was greeted by cautious optimism by
is considering backing a new dam in Turkey which                  companies, governments and other organisations. But in
threatens to uproot thousands from their homes and                the first test of its shiny-new guidelines, the WB has
destroy sites of historical and environmental interest. A         decided to back the Bujagali Dam even though it
public meeting--bringing together a range of NGOs—in
SANDRP                                                                                                           MARCH 2002

acknowledges that the project is "unacceptable from              WCD has never been implemented in a major dam
environmental and social perspectives." The bank                 project." (Engineering News Records 21/01/02)
rationalises that the WCD guidelines "offer guidance, not
a regulatory framework." The bank also promises that no          2003 to be International year of freshwater The UN
more such dams will be built on the upper Nile. How can          General Assembly in a resolution proclaimed the year
a co-sponsor of this groundbreaking achievement justify          2003 as the International Year of Freshwater. It
ignoring WCD's findings? Any mother of a teenager                encourages Governments, the UN system and all actors
knows the reason: "Everybody does it," or, in the                to take advantage of the Year to increase awareness of the
bureaucratic language of the World Bank's statement, "To         importance of sustainable freshwater use, management
the best of its knowledge [the] process proposed by the          and protection. (PR-RIGHT TO WATER 14/01/02)

                                   World Social Forum : Conference on Water
Water is a fundamental resource for life, and therefore is the common heritage of all. Therefore, it cannot be privatized,
nor converted into a market product. The right to water is an inalienable social, economic, and human right. The existing
economic system has caused the degradation and the destruction of water sources, inequality in access to water and its
growing scarcity, particularly for the poorest sectors of the population, through destructive development projects and
with strong impacts on local populations and the environment. These projects include large dams, polluting industries,
large-scale agriculture, industrial waterways, and mining. The international financial institutions and the WTO are the
financial motors of this process, resulting in the destruction of watercourses and the privatization and mercantilization of
water resources, and the placing of them in the hands of transnational corporations. Sustainable water resources
management, including in its distribution and use is vital to resolve the survival of populations. In order to achieve
sustainable water management, the current economic system will have to change. This sustainable management will also
require the effective participation of local communities in decision-making processes. Civil society organizations should
join at the local, national, regional, and international level to promote changes in the economic system and establish
sustainable alternatives. The victories in local struggles such as that of the Coordinadora de Cochabamba in Bolivia and
others in resisting the privatization process and in re-establishing sustainable community-based water management
systems demonstrates the importance of organizing and in forming alliances at the level of local communities. The fight
against dams is an important part of the struggle by local communities and civil society for control of water resources and
for the right to water, and against the current economic model. In order to achieve change at the planetary level, local
voices must be heard at the international level, and local struggles must be linked to the global level.
For Sustainable Water Management:
 Managing water from its sources, through sustainable management of territories and through the effective
participation of civil society, in particular indigenous communities, in decision-making processes.
 Requiring companies that destroy water sources, including those responsible for unsustainable land uses, mining, and
production of toxic industrial, mining, and agricultural wastes and effluents to repair the social and environmental
damages they have caused and to restore the quality of these water sources.
 Prohibit the use of chemical products that destroy water quality
 Promote campaigns against the conversion of rivers into industrial waterways
 To implement alternative biological systems for sewage management
 To promote rainwater harvesting methods for domestic and agricultural use
The Fight against dams
 To establish a moratorium on new dams until all the economic, social, cultural and environmental impacts they have
caused are resolved.
 To pressure national governments, export credit agencies, and international financial institutions to adopt the
recommendations of the World Commission on Dams.
 To promote a new energy model, based upon efficiency, conservation, and use of alternative energy sources such as
wind, solar, and biomass.
To support and express solidarity with the populations fighting Sardar Sarovar dam on the Narmada river in India by
signing a petition aimed at the Indian Prime Minister. (World Soc. Forum, Feb. 2002, Porto Alegre, Brazil)

SANDRP                                                                                                         MARCH 2002

Dam projects threaten to flood Thai wildlife sanctuary The        in Jan. 1981. Due to increase in cost, benefit cost ratio
Irrigation Department of Thailand has proposed to build           reduced from 1.33 to 1.03 making the project further
two dams in Khao Soi Dao wildlife sanctuary that would            unviable. Total assistance of Rs 155.5 M was obtained
put 4,000 rai of protected forestland under water. The            from WB during 1981-94 on the unviable project. The
department says the projects are aimed at preventing              project was scheduled to be completed by March 1985,
floods and supplying water to fruit orchards in eastern           but full command area was developed in March 1998.
Chanthaburi. The cost of building Klong Ta Lew dam is             expenditure of Rs 678.2 M was incurred upto March
estimated at 1.458 B baht, and Klong Ta Rong dam at               2000. The project was not able to realise even
1.348 B baht. But a local group said the reservoirs would         Maintenance & Repair expenditure during any year. In
not help ease flooding or drought. ``To prevent floods            fact, for the period 1992-2000, the project could generate
and water shortages, we have to protect the forests, not          revenue of only 20% of the M&R expenses on the
destroy them by building reservoirs,'' said head of the           project. (CAG Report Gujarat, Commercial 2000)
Chanthaburi civic group. (Bangkok Post 05/01/02)
                                                                  Rajasthan seeks higher share of water The Rajasthan govt.
New Partnership for Cooperation Over Water? Former                has sought a higher share of water from the Bhakra Beas
Soviet president Mikhail Gorbachev, currently president           Management Board, which decides on release of water to
of the non-governmental Green Cross International and             the Indira Gandhi Canal. (THE HINDU-D 24/01/02)
UNESCO Director-General Koichiro Matsuura have
signed a two year cooperative agreement to pool their             NABARD to give Rs 1.09 B for Rajasthan Canals
complementary approaches to water conservation. While             NABARD has sanctioned Rs 1.09 B to Rajasthan under
UNESCO will continue to develop educational tools                 the Rural Infrastructure Development Fund-VII for the
aimed at decision-makers and governments, Green Cross             Bisalpur Irrigation cum drinking water supply project. The
International will raise awareness at grassroots level. The       sanction under RIDF – VII accorded for second phase of
new initiative is called "From Potential Conflict to              the project – is meant for completion of remaining canal
Cooperation Potential: Water for Peace". Global demand            works, payment of compensation and rehabilitation of the
for drinking water has multiplied seven times during the          villagers coming under submergence area of the project.
20th century. Some 261 river basins worldwide extend              With the latest sanction, it is claimed that it will be
over more than one country and demand for water                   possible to store up to 315.5 M water in the Bisalpur dam
continues to rise and supplies of clean water are limited         and provide irrigation to 81,800 Ha land in Tonk district.
                                                                  (THE HINDU-D 19/01/02)
by drought and pollution. UNESCO will focus its
attention on the Rhine, Aral Sea Basin, Incomati, the             Cost & Time overruns, under performance of Bihar
Mekong, Jordan, Danube and Columbia Rivers. The joint             Irrigation Projects The 14 ongoing irrigation schemes
initiative will contribute to the World Water Assessment          seem to have become a big drain on the Bihar‘s economy
Programme's first World Water Development Report, due             as after consuming about Rs 16 B, additional irrigation
to come out in time for the Third World Water Forum set           facility has been created in only 153,000 Ha so far against
for Kyoto, Japan in 2003. WWAP is a joint response by             a target of 872,000 Ha. While major schemes have
23 UN agencies to address key challenges defined by               remained under construction for the last 21 to 40 years,
ministers at last year's Second World Water Forum in the          the medium schemes have already taken 4 to 29 years and
Hague. UNESCO acts as host for the WWAP Secretariat.              are still to be completed. The cost of Durgawati Project,
The last war over water was 4,500 years ago. (ENS                 which began at an estimated cost of Rs 253 M in 1976,
09/01/02)                                                         has shot up to Rs 2.344 B, the cost of the North Koel
IRRIGATION                                                        Project was originally estimated at Rs 300 M, which now
                                                                  stood at 8.361 B. (THE TIMES OF INDIA-D 11/02/02)
World Bank funded unviable Guhai Dam As per the
norms prescribed by CWC, Irrigation project having                Punjab goes to SC for review of SYL Punjab filed a review
benefit cost ratio less than 1.5 is considered economically       petition before the SC seeking a review of the earlier
unviable and such project should not be taken up. It was          judgement pronounced by the court on the Sutlej Yamuna
however seen that Guhai Reservoir Project across river            Link Canal. The petition follows the SC verdict passed on
Guhai near village Khandiol of Himatnagar taluka of               January 15, where it had given Punjab one year to
Sabarkantha district was administratively approved for Rs         complete the SYL canal. The review has been sought on
80.3 M by Govt. in Dec. 1978 with benefit cost ratio of           seven counts beginning with the SC not treating the case
1.33. The project was thereafter brought under World              as a water dispute, the case not attracting provision of
Bank assistance and estimates were revised to Rs 168.9 M          Article 131 and that of no legal claims of Haryana. It also

SANDRP                                                                                                          MARCH 2002

said the construction is not possible or cost effective and          both 60 % of India's area and population could be
that the SC had failed to appreciate Punjab‘s equity while           covered over 20 years. (THE HINDU 29/01/02)
noting the assertions in favour of Haryana. The review
petition claims that the Court‘s findings are not only               TBS water harvesting model for Afghanistan The UN
contradictory but have also preempted the pending                    bodies are keen on introducing the model of Rainwater
decision of the tribunal to decide the sharing of river              harvesting practiced by Tarun Bharat Sangha, in
waters. (INDIAN EXPRESS-D 09/02/02)                                  Afghanistan. The UN Assistant Secretary General and
                                                                     assistant administrator for UNDP Hafiz Pasha said, ―we
IRRIGATION OPTIONS                                                   will request TBS to help us in Afghanistan. The UNDP
                                                                     officials, who are looking forward to rebuilding
Big increase in water table due to check-dams The                    Afghanistan, have invited TBS to visit Kabul at the
construction of 15,000 check-dams during the last two                earliest and teach the people how water can bring about a
years in Gujarat has resulted in remarkable rise in the fast-        sea change in their lives. (THE HINDU-D 16/02/02, PIB
depleting water table, said Gujarat Irrigation Minister. The         27/02/02)
minister pointed out that the storage of 7,500 million
cubic feet of water in thousands of wells and bores helped           FLOOD ISSUES
irrigate 1,50,000 Ha. He said the water table in wells rose
                                                                     Hundreds of houses submerged due to embankment
by three to 12 m following overflowing of check-dams in
                                                                     breach The water of Yamuna entered in the Indira Colony
2001. It may be recalled that in the year 2000, the water
                                                                     slums in Delhi due to breach in embankment of the river.
table in wells had risen from two to 17 m. The minister
                                                                     Hundreds of houses and huts were submerged. The local
said in Bhavnagar district the sub-soil water table had
                                                                     persons have alleged that due to dumping of fly ash of
registered increase of 30.20 m, followed by Junagadh
                                                                     Rajghat power station, the bank of river has reached up to
23.50 m, Rajkot 6.50 m, Jamnagar 9.38 m, Surendranagar
                                                                     embankment level. (RASHTRIYA SAHARA 22/01/02)
7.38 m and Amreli 17.50 m. He said with the construction
of 5,500 more check-dams during 2001-02 an estimated                 Assam flood problem Assam has urged the Central Govt.
55,000 Ha would get additional irrigation, and there                 to take into consideration the urgent need to mitigate the
would be additional water storage of 2,750 MCFt. He said             flood problem of Assam while constructing the multi-
so far 20,500 check-dams had been constructed,                       purpose dam projects like Subansiri and Dehang in
increasing the total water storage capacity to 10,250 MCFt           Arunachal Pradesh. The State Flood Control Minister
and creating irrigation in about 2,05,000 Ha. (THE TIMES             stated that those multi-purpose dams were envisaged in
OF INDIA-A 07/02/02)                                                 order to facilitate irrigation, flood control and power
Rethinking watershed strategy The last four decades have             generation. The Minister informed that as coming up of
seen an increasingly widening gap between the                        multi-purpose dam projects may take long, State Govt.
productivity of irrigated and dryland agriculture. India's           has proposed to enhance allocation to the tune of about
drylands have suffered massive neglect, both in terms of             Rs 26.70 B for the next 10 years for proper strengthening,
public investment and appropriate R&D. These, especially             maintenance and upkeep of the existing short-term
the tribal pockets within them, are the flash points of              measures of flood control. He claimed that short-term
often-violent protests, a reflection of intense                      flood control measures so far executed by the State Govt.
disenchantment with the national mainstream. Micro-                  resulted in protection of about 1.63 M Ha of flood prone
watersheds of between 1,000-2,500 Ha are allotted funds              land. So far 4454 kms of embankment, 850 kms of
at the (recently revised) rate of a theoretical maximum of           drainage works, 667 anti-erosion projects and 85 sluice
Rs 6,000 per Ha. Each micro-watershed can get up to Rs               gates have been constructed as short-term measures.
                                                                     (ASSAM TRIBUNE 16/02/02)
15 M, to be spent in a short span of 5 years. This leads to
a massive concentration of resources in a few villages,              Heavy floods in Indonesia More than 300,000 people of
creating inequities across selected and left-out villages,           Jakarta in Indonesia have been affected from the floods.
especially given the absence of justifiable criteria of              About 40 people had been killed in flooding and
selection of villages, in the first place. There are around          landslides throughout Indonesia triggered by monsoon
600,000 villages in India. 400,000 villages can be said to           rains. Floodwaters have reached up to 20 feet in several
be in need of urgent watershed intervention. If this effort          areas of Jakarta. (THE TRIBUNE 02/02/02)
continues at the necessary pace, over the next 20 years, we
could look forward to 200 M Ha of India's most needy
areas being covered by people-centred watershed
programmes. 600 M people inhabit these areas. Thus,
SANDRP                                                                                                            MARCH 2002

WATER SECTOR                                                          WB-aided Karnataka rural water supply project The World
                                                                      Bank funded rural water supply and sanitation project has
Dangers of Water Privatization The Pacific Institute has              been launched to cover 11 northern districts of
released a new report on water privatization that aims to             Karnataka. The WB is providing Rs 8.108 B of the total
ensure water privatization deals are fair, protect the public         cost of Rs 10.353 B Jal Nirmal project, to be implemented
health, and don't harm the environment. The New Economy               upto 2008. The rural water scheme is part of the six State
of Water: The Risks and Benefits of Globalization and                 projects proposed for a total bank aid of Rs 120 B. (THE
Privatization of Fresh Water is an examination of the issue of        HINDU-D 12/02/02, BUSINESSLINE-D 13/02/02)
water privatization. The report looks at the dangers and
benefits of water privatization and offers case studies               BOTTLED WATER INDUSTRY
from around the world. "Water privatization efforts have
been growing rapidly both in the US and abroad, but                   Indian Railway would launch Railneer The Union Rail
public understanding and oversight of these deals lags far            Minister has announced, ―The Indian Railways will
behind. Water privatization must be subject to much                   manufacture its own brand of mineral water for supply on
stronger public scrutiny," emphasized Dr. Peter H.                    trains and platforms. Currently, the Railway makes use of
Gleick, lead author. "There is little doubt that the                  roughly 200 brands of packaged water. (THE TIMES OF
                                                                      INDIA-D 04/02/02)
headlong rush to private markets has failed to address
some of the most critical issues and concerns about water.            Bottled water a major environmental concern Plastic
How can we protect the world's poorest people, how can                containers are the accepted form for bottled water. 72 %
we ensure that the environment gets a fair share, how can             of bottled water packages in the US contain less than five
water quality be protected for future generations? All of             liters. Every year 1.5 M tonnes of plastic are used to bottle
these questions must be answered before we move                       water and toxic chemicals can be released during the
forward             with          more         privatization."        manufacture and disposal of the bottles. Along with the
(                      problem with bottles themselves is the problem with
WB water projects in UP, Rajasthan The World Bank has
                                                                      getting them to consumers. A quarter of the 89 B liters of
approved two loans which claim to improve income and                  water bottled worldwide annually are consumed outside
fight rural poverty in Rajasthan and Uttar Pradesh                    of their country of origin and carbon dioxide emissions,
through two water restructuring projects totalling $289.2             caused by transporting bottled water within and between
M. The Rajasthan Water Sector Restructuring aims to                   countries can contribute to global climate change. (Earth
                                                                      Times News Service 06/12/01)
promote more sustainable development and the use of
the state‘s limited water resources by improving its                  WATER SUPPLY OPTIONS
management, particularly in the irrigation sector. In UP,
agricultural performance as a share of the economy is                 Rajkot has Big potential for water harvesting A study
dwindling. To enhance rural income, agricultural growth               conducted by Sandipani Institute of Economic Research
needs to be higher than 3 %. In reality, it has averaged 1            has revealed that Rajkot city has tremendous potential for
% in recent years. (BUSINESS LINE-D 21/02/02)                         water harvesting and bore recharging. The study stated,
                                                                      "around 70 % of the houses in the city have domestic
WATER SUPPLY                                                          bores and with the recharging, the water table could come
                                                                      up by 3-4 m every year and the domestic bores could
Bore well scandal in Gujarat The recently exposed
                                                                      meet the demand of drinking water of the entire
financial irregularities in the Rajkot civic body is estimated
                                                                      household throughout the year". At present only 10 % of
to be Rs 300 M just in drilling bores since 1999 to supply
                                                                      the households have adopted recharging of their bores.
water to the city. The standing committee had passed a
                                                                      The paper stated that the aggregate demand of water in
resolution to drill bores at Rs 34 per sq. ft and within
                                                                      the city was 137.18 M litres per day and by 2021 it would
days, the prices were jacked up to Rs 58 per sq. ft.
                                                                      go up to 243.31 MLD. The three main sources of water -
Though the civic body had the machinery and pipes that
                                                                      the Aji, Nyari and Bhadar dams - could supply just 8
could fit only in 165 mm bore, contracts were given to
                                                                      MLD of water and hence, all water supply schemes were
drill bores with 200 mm that were of no use. Bores were
                                                                      an exercise of temporary patch work. (THE TIMES OF
drilled at spots that geologists had ruled out. And where             INDIA-A 02/02/02)
geologists had recommended going down to 600 m,
contractors had drilled just up to 500 m and when water               MCD      to Preserve Water Bodies The Municipal
was not found, the bores were said to have been 'dead'.               Corporation of Delhi decided to preserve and regenerate
(THE TIMES OF INDIA-A 21/01/02)                                       historical water bodies in the capital. The MCD told the
SANDRP                                                                                                                MARCH 2002

Delhi High Court that there are 508 water bodies in the             resulting in rapid decline in mangrove cover. The 7.45 %
capital, which can be preserved and maintained.                     area of the Gulf coast was salt affected in 1960, but rose
According to the MCD, it will initiate steps to preserve            to 54 % in 1984, 57.6 % in 1986 and 64 % in 1993 and is
those wells and acquifers whose minimum wet surface                 about to reach 70 %. (THE TIMES OF INDIA 03/01/02)
area is 4,000 sq. m. Similarly, water-bodies of 4,000 sq. m
will be reclaimed even in rural area. The MCD took this             Water pollution unchecked in Mumbai The latest report
decision after conducting a survey alongwith INTACH on              of CAG reveals that 99 % of the sewage water generated
how many water bodies could actually be preserved and               by municipal councils and over 50 % of sewage
recharged in Delhi. (THE TIMES OF INDIA-D 14/01/02)                 discharged by municipal corporations goes untreated and
                                                                    government had failed to take effective steps to compel
Soil 'loaning' to help Nawabganj bird sanctuary In 'one of          local self-governments to treat waste water and permitted
its kind' tie-up with the National Highway Authority –              their raw discharge into the water bodies. The report said
currently constructing an express highway between                   Mumbai generated 2 562 MLD of domestic effluents, of
Kanpur and Lucknow, the state forest department has                 which only 929 MLD was adequately treated. (THE
sealed a 'contract' to 'loan' out soil from lake and thus           TIMES OF INDIA 09/01/02)
meet the soil requirement of the NHA to level the road
stretch around the Nawabganj area of the highway.                   Polluted Narayani River in Nepal Increasing pollution in
Foresters are happy for two reasons: the uphill task of de-         the Narayani river is spelling doom for its aquatic lives.
silting the 1.5 square km lake at the Nawabganj bird                Locals say the number of aquatic lives in the river—
sanctuary which was shrinking at an alarming pace and               crocodiles, tortoises and different species of fish—have
attracting rare migratory birds back to the sanctuary               started declining due to acute pollution. The river is also
would be accomplished almost free of cost. (THE TIMES               home to dolphins, the number of which has declined
OF INDIA 09/09/01)                                                  because of the dumping of toxic substances. "Now that
                                                                    fish have become so rare in the river, it is impossible to
HC on Wetland Destruction in UP by WB Allahabad High                sustain life by just sticking to the profession," says a
Court has admitted a petition seeking to stop the Uttar             fisherman. (KATHMANDU POST-NEPAL 12/01/02)
Pradesh Govt. from draining the wetlands in Etawah and
Mainpuri, home to the world‘s largest concentration of              RIVERS RELATED ISSUES
sarus cranes. On a Wildlife Trust of India petition, it             Ganga can be as clean as the Thames Mark Lloyd,
directed the UP forest dept. secretary to submit a status           director of Thames 21, a London-based NGO that has
report. Notices have been issued to Union ministries of             been involved in keeping the Thames clean said that the
Agriculture and Env. and Forest. The wetlands are being             only way to keep rivers like the Yamuna and the Ganga
drained as part of a World Bank project to turn saline              clean is by involving the local people. This will help the
wasteland into agriculture land through a 54-km drain.              people reconnect with the river and inculcate a sense of
                                                                    ownership in them. He gave the example about Thames,
WATER POLLUTION                                                     ―We got together to encourage the public and businesses
                                                                    not to allow litter and waste to end up in London‘s rivers.
Concern over pollution in Gulf of Khambat The                       With the help of nearly 5,000 volunteers and four boats,
Paryavaran Suraksha Samiti in Gujarat, has decided to               we manage to clear 1,000 tonnes of waste from 400 miles
take up the issue of industrial waste which is polluting the        of the river annually. (THE TIMES OF INDIA-D 13/02/02)
Gulf of Khambat, and has warned that with the
completion of the Narmada project the only source of                Fly ash flows into Sutlej In a major ecological catastrophe,
fresh water for the Gulf would be blocked. It said 70 %             thousands of tonnes fly ash flowed in to Sutlej River due
of the ground water across the Golden Corridor was                  to breach in the ash dyke of the Guru Gobind Singh
contaminated by polluting industries. The Golden                    Super Thermal Plant. (THE TRIBUNE 24/01/02)
Corridor was well known for its rich water resources from
                                                                    Guidelines for sharing of river waters to be reviewed A
rivers like Sabarmati, Mahi, Narmada, Tapi etc, but due to
big and medium dams on the rivers, the down stream                  Working Group set up under the chairmanship of the
                                                                    Minister for Water Resources, has recommended that the
flow of the rivers had drastically reduced. Now these
                                                                    draft National Policy Guidelines for water Allocation
rivers do not carry any fresh water into the Gulf of
                                                                    among the states be referred to the National Water Board
Khambat, in reality they carry industrial effluents and
                                                                    headed by the Water Resource Secretary. (THE HINDU-D
domestic wastewater discharges. The Gulf has suffered
severe degradation in a short span of 25 to 30 years,

SANDRP                                                                                                             MARCH 2002

India, China sign MoU on river data India and China
signed a MoU to share hydrological data on the rivers               AGRICULTURE AND FOOD PRODUCTION
including Brahmaputra and Siang, flowing through China              Decline in the farm income Agriculture output is
into the country to aid flood forecasting. The MoU on               increasing and boosting the growth statistics but all
making available to India hydrological data has a special           farmers do not benefit, as brought out in an official
bearing on the North-East and is expected to go a long              report. Because all farmers are not protected by the MSP
way in better flood management in Assam and Arunachal               nor by government procurement by the FCI. Only Punjab
Pradesh. Similarly, with Bhutan, a ―Comprehensive                   and Haryana enjoy the privilege of 100 % procurement at
Scheme for establishment of Hydro-meteorological and                the MSP. (THE TRIBUNE 05/01/02)
Flood forecasting Network on Rivers Common to India
and Bhutan‖ is in operation. (ASSAM TRIBUNE 16/01/02)               Panel    Advises diversion of farm subsidies M S
                                                                    Swaminathan Committee report on agriculture and allied
India, China to conduct hydrographic studies of Sutlej
                                                                    sectors for Tenth Plan said some of the subsidies like free
India and China are likely to go in for joint hydrographic
                                                                    electricity for ground water use and canal irrigation have
studies of the Sutlej river in Himachal Pradesh to enable
                                                                    adversely affected natural resources and financial health of
flood control as this had been causing immense damage
                                                                    states. ―While subsidies may be desirable to adopt
to the state. The exchange of information on the river had
                                                                    improved production technologies and entrepreneurship
been stopped since 1962. (Rediff News, 23/01/02)
                                                                    the ones adversely affecting natural resources have to be
Centre takes up Karnataka cause in Cauvery row The                  redeployed,‖ the report said. It also recommends a bigger
Centre has filed an affidavit in the Supreme Court, in              role in some of this for private players. (THE ECONOMIC
Cauvery water dispute between Karnataka and Tamil                   TIMES-D & THE TIMES OF INDIA-D 04/01/02)
Nadu, supporting the stand of Karnataka and seeking                 Tamil Nadu to develop 2 M Ha of wasteland In order to
dismissal of the suit filed by TN. TN, in its suit, had             promote the development of the farming sector, the TN
sought a direction to Karnataka to comply fully with the            Govt. has proposed to develop 2 M Ha of wasteland over
various interim orders of the Cauvery Tribunal and also a           the next five years. (BUSINESS LINE-D 07/01/02)
direction that Karnataka should release one tmcft of water
daily to TN to save the withering crops. The 11th meeting           AP to continue power subsidy for farm sector The Andhra
of the Cauvery monitoring committee decided that the                Pradesh Government will continue the power subsidy to
CWC would rework formula for sharing the Cauvery                    the agriculture sector. The govt. will bear an additional
waters in a distress year, after taking in to consideration         burden of Rs 8 B, over the committed subsidy of Rs 15.62
the comments of the State Governments. Karnataka said               B during the current year. (BUSINESS LINE-D 05/02/02)
that as per the interim order of the tribunal, the State was
required to insure a flow of 205-tmc ft at Mettur in a              Quick reforms in farm sector urged The Associated
water year from June to May. TN urged the Cauvery                   Chambers of Commerce and Industry has called for
Tribunal to treat the entire Cauvery basin comprising               carrying out urgent reforms in agricultural sector. These
Karnataka, TN, and other riparian States as one Zone and            include freeing crop-pricing policy from controls and
evolve a formula for equitable distribution of water as per         removing or relaxing export ceiling on commodities. IT
the requirement of the each State. (THE HINDU-D                     would like the Govt. to increase public spending on
13/02/02 & 15/02/02)                                                physical expenditure to stimulate demand for basic and
                                                                    capital goods industry. (BUSINESS LINE-D 23/02/02)
Demand for Partial Removal of Dam A coalition of
environmental and other groups have filed objections to a           A treaty to establish the gene pool as a global commons
plan for dredging the Lower Snake River. As part of its             Biotech activists from more than 50 nations announced
20-year, multimillion-dollar plan to maintain the channel           their support for a treaty, which would establish the
and dispose of the sediment, the Army Corps of                      earth's gene pool as a global commons. NGO leaders say
Engineers plans to begin dredging the river next winter.            they will challenge govt. and corporate claims on patents
The environmental groups maintain the plan will not                 on life in every country. The treaty is the first globally
solve the long-range problem of persistent sediment                 coordinated campaign among biotech activists, and
buildup behind Lower Granite Dam. "Raising the levees               already has the support of over 250 organizations. The
and dredging are not long-term solutions," Bowler said.             Treaty Initiative is being announced simultaneously in
"The best long-term, safest and most cost-effective way             New York at the UN preparatory meetings for the Rio
out of this predicament is to partially remove Lower                Plus 10 meeting, and in Porto Alegre, Brazil at the World
Granite Dam." (Associated Press 07/01/02)                           Social Forum. The Treaty Initiative to Share the Genetic
SANDRP                                                                                                             MARCH 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES                             14

Commons aims to prohibit all patents on plant,                              SUGAR INDUSTRY SUBSIDIES
microorganism, animal,   and     human    life.
( 01/02/02)                                         TN may privatise sugar co-operatives The Tami Nadu
                                                                            govt. is mulling to privatise some of the unlivable co-
                                                                            operative and public sector sugar mills. The Govt. would
FOOD SECURITY                                                               also consider converting into equity the ways and means
Food security turns in to food stocks nightmare? The food                   advances amounting to Rs. 3.5 B granted earlier.
                                                                            (BUSINESS LINE-D 17/01/02)
subsidy has almost doubled in last four years – Rs 136.70
B in 2001-02 from Rs 75 B in 1997-98. But Rs 56.80 B                        Sugar decontrolled The Central Cabinet has approved
out of the Rs 136.70 B food subsidy bill is wasted in only                  complete decontrol of sugar during 2002-03 after futures
maintaining the huge foodgrains stocks in the                               trading in sugar kicks off in November. This implies that
government‘s godowns. 58 MT of foodgrains were in the                       the existing levy sugar system and quota release
gowodns – wheat stocks at 32.4 MT, were four times the                      mechanism for sugar would be abolished. Currently,
requisite buffer stock requirement of 8.4 MT. Similar was                   under the levy sugar system, sugar mills are required to
the case of the rice stocks of which were estimated at 25.6                 sell 15 % of sugar production to the govt. at an
MT, around three times the buffer stock norm of 8.4 MT                      administered price that is below the market price. Also,
as on January 2002. (Indian Express-d 27/02/02)                             under the quota release system the mills can sell only a
                                                                            government prescribed quota of sugar in particular
Plan panel recommends smart-card system for PDS The
                                                                            quarter in the open market. (THE ECONOMIC TIMES-D
Tenth Plan Working Group of PDS & Food Security has
recommended introduction of smart-card system in the
form of a credit or debit cards to eliminate the rampant                    Plan for vitamin ‘A’ added sugar The Govt. is to start a
corruption in the PDS. The food credit cards may be used                    programme in which vitamin A-added sugar would be
by the poor to buy foodgrains at subsidised rates from the                  distributed by PDS for BPL people. National Cooperative
open market and the retailers may claim the subsidy from                    Sugar Mills Organisation has started a pilot unit at Dhule
the government later, say once in the month. (INDIAN                        in Maharashtra for production of vitamin A-added sugar.
EXPRESS-D 08/01/02)                                                         (RASHTRIYA SAHARA 10/01/02)


We have been talking of reforms and privatisation for the last 10 years as if privatisation is the panacea for all this... However, for
privatisation there are no bidders and buyers waiting at our borders… The ground level work has to be done first. In fact, that has been the
problem with the reform process in Orissa…
The lesson we have learnt is that the base line data and information that should have been gone into was not complied with… when we went in
for privatisation in Orissa, the T&D losses, estimated at about 23-24%, eventually turned out to be in excess of 50%. That is one of the root
causes of the failure of the Orissa reforms programme…We have decided to do a proper appraisal of the Orissa model… Increase in tariffs
cannot be the criterion of success of the reform process. We must make sure that reforms really lead to tariff reduction…
I am thoroughly convinced that if anybody has to come to power, in the next five years, it should be public money. Nowhere in the world has any
country achieved self-sufficiency in power through private money. France today is an example where power continues to be a public monopoly. It
is only later that private money comes in, after the sector starts functioning well. We have not reached that stage yet, as 65% of the rural
households are still without electricity. The remaining 35% complain about the quality of electricity… In China, 99% of the capacity addition
has been through public investment… In the last 10 years, we thought private and foreign money would solve our power problems. It has not
come true… But if you expect that the private sector will come in to create that platform, then we are living in wonderland… But fortunately
for us, the Deputy Chairman of the Planning Commission and our Finance Minister agree with the perception that power sector development
and creation of new capacities must necessarily come from public money…
Our experience over the last decade shows that whenever we tried to tap private investment into generation, we had to necessarily rely on counter
guarantees… It means we are actually creating a contingent liability from day one. And we have to pay for it eventually because when
contingent liabilities are created and structural changes are not implemented, it is sure way to ensuring that the contingent liability becomes a
real liability down the line and has to be paid for…
                                            Union Power Minister Suresh Prabhu (THE BUSINESS LINE-D, 22 & 23 Jan. 2002)

SANDRP                                                                                                                            MARCH 2002

POWER GENERATION                                                   years period. The tie up will help the Indian Railways save
                                                                   close to Rs 10 B annually on the energy bill. The
Massive outlay for power generation With an expected               investment requirement in the joint venture would be
55,158 MW of additional power generation capacity                  around Rs 80 B. The Railways and NTPC will hold 50 %
planned for the 10th Five Year Plan (2002-07), an expert           of the equity each. (BUSINESS LINE-D 19/02/02)
group set up by the planning commission has estimated
that fund requirement to achieve the target would be               Delhi to set up power projects in Chhattisgarh The Delhi
about Rs 5 660 B. The break up provided by the                     govt. is exploring the possibility of setting up a 1 000 MW
commission shows that the bulk of the funds, Rs 3 235.33           TPS in Chhattisgarh. (THE HINDU-D 23/01/02)
B, would be required for new generation schemes. The
nuclear projects would cost Rs 281.27 B. The supporting            POWER REFORMS
infrastructure for T&D would call for an expenditure of
                                                                   Public money must for power sector The Union Minister
Rs 1509.57 B while load dispatch and telecommunication
                                                                   for Power Mr. Suresh Prabhu has said, ―The very fact that
would cost about Rs 8.77 B. Rs 122.26 B would be
                                                                   you are starting a fresh means that the ten years of
required for Renovation & Modernisation of the existing
                                                                   reforms have failed.‖ The Government has decided to
generating units while research and technology
                                                                   adopt a six-level strategy. The Central Government will
development would cost about Rs 50 B. The additional
                                                                   have to do needful such as introduce the Electricity Bill.
investment is expected to be Rs 429 B for Rural
                                                                   The Second level is the States and the third is the SEBs.
electrification while the demand side management would
                                                                   The fourth layer is the district, the fifth the feeder and
cost about Rs 25 B. (THE HINDU-D 22/01/02)
                                                                   sixth and final level is the consumer. The government has
 Outlay for energy sector In the Ninth Plan, the total
                                                                   now decided to convert the entire country on the basis of
investment in the private and public sectors in the energy
                                                                   63-feeder/distribution circle. Currently about Rs 200 B is
sectors has been less than Rs 750 B. The Ninth Plan
                                                                   lost due to thefts and this amount, if made good through
outlay for the entire public sector was just about Rs 6 500
                                                                   better technology, should be passed on to consumers.
B with the total gross budgetary support at Rs 3 250 B for         One way to of preventing thefts of electricity is to switch
all sectors combined. (BUSINESS STANDARD-D
                                                                   over to high voltage T&D. At the feeder level, we are
                                                                   bringing the accountability so that the blame can be
 In the 10th Plan 28,000 MW additional generation
                                                                   pinpointed at each feeder for theft and high T&D losses.
capacity is to come from Thermal, 17,000 MW from
                                                                   (BUSINESS LINE-D 22/01/02 & 23/01/02)
Hydro and rest are planned from other sources. In 9th
plan the target had been set up for 40,245 MW additional           Bengal power bodies to contest new tariff rates All the
capacity, but in first four-years 15,751 MW capacity               three major power utilities in West Bengal are preparing
addition has been achieved. In 8th plan the achievement            to challenge their new tariff rates in the High Court. The
was 16,422 MW, while the target had been set up for                West Bengal Electricity Regulatory Commission recently
30,538 MW. (RASHTRIYA SAHARA 11/01/02)                             completed its process of announcing the tariff revision
                                                                   for all the five utilities under its jurisdiction. (BUSINESS
31 power projects may not see financial closure Of the 40          LINE-D 03/01/02)
independent projects expected to come up in the country,
the ministry of power has narrowed its focus on nine               Uninterrupted power supply for villages in AP The Andhra
projects with a generation capacity of 4 287 MW, which             Pradesh CM has announced that uninterrupted power
have reasonable chances of achieving financial closure             would be supplied to all non-agricultural services in all
over the next years. A total of 31 projects, with a                villages by August this year. (THE HINDU-D 03/01/02)
cumulative capacity of 18 715 MW, are stuck with no                 Free power supply ruled out Ruling out free power
hope of achieving financial closure in the near future. A          supply, Union Power Minister and AP CM termed the
majority of these projects are in the doldrums on account          demand by political parties in this regard as "most
of non-availability of escrow cover and inability of the           unreasonable" and "unjustified". (Daily Excelsior 23/02/02)
states to extend guarantees. (BUSINESS STANDARD-D
21/02/02)                                                          WB argues small farmers' case in AP Even as the state
                                                                   govt. subsidy bill is of over Rs 15 B on supplying power at
NTPC, Railways sign pact on power plants The NTPC                  nominal rates to farmers, the World Bank has expressed
will create additional capacity of 2000 MW from its joint          the view that the small and marginal farmers of AP are
venture with the Indian Railways by setting up power               paying a bit too much for electricity. In a document titled
plants to meet the energy requirements of the Railways.            India Power Supply to Agriculture — AP Case Study
The projects are likely to be commissioned in around five          (report no. 22171-IN), the bank says these farmers are
SANDRP                                                                                                            MARCH 2002

paying a higher price than revealed by the state‘s power             ENERGY OPTIONS
utility. The poor quality of power supply is adding to
farmers‘ costs on account of various factors including               World wind generating capacity up The world wind power
frequent motor burnouts, interruptions due to                        generating capacity has climbed from 17,800 MW in 2000
transformer burnouts, unscheduled power cuts, which                  to an estimated 23,300 MW in 2001—a dramatic gain of
erode crop yields. However, the document also                        5,500 MW or 31 %. Since 1995, world wind-generating
recommends a hike in tariff for power supplied to the                capacity has increased an astounding 487 %. In wind
farm sector, as the current charges are inadequate to                electric-generating capacity, Germany leads the world with
recover costs. ―The present tariff in the state, based on a          8,000 MW. The US follows with 4,150 MW. Spain is in
flat rate structure, is regressive and is penalising marginal        third place, with 3,300 MW. Denmark, which is fourth
and small farmers who are using less electricity for a given         with 2,500 MW, now gets 18 % of its electricity from
connected capacity,‖ the document says. (THE TIMES OF                wind. Two thirds of the capacity added in 2001 was
INDIA 05/01/02)                                                      concentrated in the top three countries: Germany added
                                                                     1,890 MW; the US, 1,600; and Spain, 1,065.
Karnataka to privatise power sector after forming DisCos             (
The Karnataka Govt. has decided to kick off privatisation
in the power sector next fiscal once the four distribution           Small hydel projects need of the hour in Kerala Experts in
companies are set up. These DisCos will comprise                     the power sector are of the opinion that the KSEB
Bangalore, Mangalore, Hubli and Gulbarga centres.                    appeared to be sidelining the very high SHP potential of
(BUSINESS LINE-D 21/01/02)                                           the State, despite the fact that, if fully exploited, it could
                                                                     very well solve the power crisis. A survey conducted by
IDBI not to fund power projects sans LC IDBI has                     the KSEB has identified 76 SHPs with a total potential of
decided to insist on a three-tier security mechanism                 405 MW. The installed power capacity in the state has
including escrow or Letter of Credit mechanism as a pre-             increased from 1,505.5 MW in 1996 to 2,385.5 MW by
condition for taking up fresh power projects in any of the           Dec. 1999. (THE HINDU-D 03/01/02)
states. The FI has also decided to ensure escrow cover to
projects before commencing disbursements of the                      NABARD funds small hydel plant in MP NABARD has
sanctioned loans to such projects. IDBI board has                    sanctioned Rs 540 M for construction of a small hydel
approved the new decisions regarding the power sector                plant, five minor irrigation projects and other projects in
financing. IDBI, which had earlier decided to ‗go slow‘ on           Madhya Pradesh. The hydel plant would be constructed
financing projects in the power sector, has now almost               on the left bank canal of Bargi diversion project in
decided against extending finances including the                     Jabalpur district. The hydel plant, first ever to be
sanctioned loans to many of the projects, which are still            sanctioned by NABARD, would generate 43.848 M units
struggling to take off. The decision apparently is because           of power. (THE ECONOMIC TIMES 18/01/02)
of the looming threat of a sizeable part of its exposure in
                                                                     World’s first wave energy generator Scientist have
this sector turning into NPA. (THE ECONOMC TIMES-D
10/01/02)                                                            successfully developed the world‘s first commercial wave-
                                                                     power station. (THE TRIBUNE 19/01/02)


A good beginning. The content is rich and well selection very appropriate. The range of issues is as broad as it should be!
What about having people struggles as a category, only with law and policy issues?
Medha Patkar, Narmada Bachao Andolan

We are thankful for the SANDRP update you have started sending us. We are finding it useful in our struggle forward.
S. Unnikrishnan, Chalakudy Puzha Samrakshana Samithi, Kerala
Your Update has come out well. It creates an impact in the mind as its contents flow from Dams to people though I saw
very little on rivers.
Dilip Fouzdar, Delhi

I just received SANDRP January 2002 update and it seems very informative on diverse issues. Keep it up.
Naeem Iqbal, Pakistan Network on Dams, Rivers and People

SANDRP                                                                                                                MARCH 2002

Generation electricity from mud Research conducted by            FIs warn Enron to return Dabhol stuff IDBI led Indian
University of Massachusetts microbiologists concludes            lenders have asked DPC to return e-chips and coded
that certain micro organic matter commonly found at the          CDs, among other equipment and documents, as early as
bottom of the ocean can transform into electrical energy.        possible to the plant site. DPC had removed equipment
(THE HINDU-D 24/01/02)                                           and documents to Enron‘s headquarters in Houston,
                                                                 citing possible vandalism. IDBI officials said they were
Power plant to run on Municipal solid waste TIFAC has            not initiating any legal action against DPC. (THE
evolved a technology by which power plants can be run            ECONOMIC TIMES-D 17/01/02)
on solid fuel derived from processing the Municipal Solid
wastes. A 6.6 MW power plant will be integrated with the         Four petitions against DPC Four petitions have been filed
Municipal Solid Waste processing plant commissioned in           in Bombay high court challenging the legality of the 2184
Hyderabad. The project is expected to cost about Rs. 280         MW DPC, the PPA between DPC and MSEB, tariff
M and completed in about a year. The Municipal waste             charged by DPC, and guarantees provided by the
plant, also developed with TIFAC technology, processes           government to the US multinational. The petitions were
about 700 tonnes of wastes per day from which 210                mentioned by advocate Rajiv Patil before justices Ajit
tonnes of solid fuel can be produced. (PIB 11/02/02)             Shah and Vijaya Tahilramani who decided to hear them.
                                                                 (Rediff News 24/01/02)
                                                                 Maharashtra sets terms for Dabhol power offtake The
No Guarantee for Dabhol-II The Finance Ministry has              Maharashtra govt. has set pre-conditions for evacuation
informally told the FIs that it is not willing to offer          of power by the MSEB. The state govt. has asked that
guarantees to them to finance the remaining portion of           mega power project status should be accorded to the
the Dabhol Phase II having a generation capacity of 1,444        2,184 MW project. It has also sought a refund of the
MW and a five mmtpa LNG regassification terminal. The            customs duty paid on the import of capital equipment.
FIs had earlier proposed to the govt. for sovereign              (BUSINESS STANDARD-D 14/02/02)
guarantees amounting to Rs 21.55 B as one of the
sacrifices on the part of the Centre to make the project
competitive. (BUSINESS LINE-D 02/01/02)

                                              JUST PUBLISHED!
Power Finance
Financial Institutions in India‘s Hydropower Sector

A Report by Peter Bosshard
Published in India by
South Asia Network on Dams, Rivers and People
Pages 132, (Suggested Minimum Contribution) Rs. 100/-
The report analyses the new trends in power finance. It looks at where the money comes from,
which policies funders apply, and who can eventually be held responsible for particular
―The most percipient analysis of India‘s hydro finance that I have ever seen‖
- Robert Goodland, former environment advisor, the World Bank Group
Send your orders to SANDRP, c/o 53-B, AD block, Shalimar bagh, Delhi 110 088
with a Demand Draft in favor of Yuva, Payable in Mumbai.
Add Rs. 20/- for postage and packing.
SANDRP                                                                                                        MARCH 2002

ENVIRONMENT                                                         850 sq km. In 1993, the area of forestland in Assam was
                                                                    24,508 sq km, which came down to 23,688 sq km in 1999.
HP Villagers help regenerate forests The people of Chail            (SENTINEL 16/02/02)
Chowk valley of Gohar forest division in Himachal
Pradesh have regenerated the forest with the joint efforts          Affected would not get land right in MP The list of Tawa
of village forest development committees and forest                 dam, Proof Range and ordnance factory oustees, prepared
department. Astonishing results have followed. The oak              by Hosangabad district administration, is faulty and
and wild fruit trees made their appearance within just one          incomplete. In this list very big part of the oustees have
year and villagers harvested a bumper grass crop. Over              not been counted. Kishan Adivasi Sangathan of
160 families have been associated with this effort. The             Hosangabad has written a letter to the DM and demanded
thick growth of forest has given yet another surprise to            immediate meeting in this regard. It is clearly written in
villagers. Their only source of water – Dari spring –,              the decision of revenue department that the definition of
which was drying up, has recorded three times increase in           the affected would be taken as that in the Narmada
the water level. It is an open demonstration to the people          project. According to this definition, each adult member
that forests play such an important role in the                     of affected family would be entitled for 5 acres of land.
conservation of water. (THE TRIBUNE 07/02/02)                       Instead, the district administration has taken only those
                                                                    who were listed in land acquisition list. Hence none of the
'Save Forest' campaign by WB tribals bears fruit Shambhu            forest villages have been counted. (SARVODAYA PRESS
Charan Kerayee, living in the dense forests of Uishiya              SERVICE 15/02/02)
village in Noamundi block of West Singbhhum, is a proud
man today. He has succeeded where the govt. has failed.             In quake prone zones HP government okays for five floors
It was in his village one-and-a-half decades back that the          The Himachal Pradesh govt., in a complete reversal of its
"Save Forest" movement began. The movement has now                  own decision, has okayed construction of all buildings up
graduated to a regular committee of 42 villages, which              to five storeys. Less than a year ago the govt. had frozen
frames its own rules to protect the forest and also                 the limit to three storyes and imposed a complete ban on
punishes anyone found violating the rules. The committee            construction of new buildings in Shimla‘s green belt areas.
is now actively engaged in protecting and regenerating              It is well known that Shimla and other areas of the HP are
more than 2 000 Ha of forest. Almost 70 % of the                    in the heavy quake prone zone. (THE INDIAN EXPRESS-
population of Noamundi comprises of tribals, mainly                 D 30/01/02)
from the Ho community, who reside in 67 villages in the             Fertiliser scam in Bihar According to the report of
block. In August 1988, a group of villagers decided that it         Finance Management and Internal Resource committee of
was time to take forest management in their own hands.              Bihar Legislative Council, the nexus of govt. persons and
(THE TIMES OF INDIA-Patna 23/01/02)
                                                                    big fertiliser companies has led to a Rs 580 B fertiliser
Assam forests do the vanishing trick despite SC ban                 scam. (RASHTRIYA SAHARA 22/01/02)
Despite the Supreme Court ban on felling of trees and
                                                                    WB aid for Chhattisgarh The World Bank has approved a
movement of timber in 1996, the forest cover in Assam
                                                                    Rs 3 B aid to the Chhattisgarh Govt. for forest
has declined during the last five years. In 1997, Assam
                                                                    development in the state. Chhattisgarh has a forest cover
ranked 11th in the country‘s list of states having
                                                                    of 44 %. (THE HINDU-D 06/02/02)
forestland. However, it came down to 12th in 1999.
During this period, Assam‘s forestland has reduced by
                                                   ABOUT THE UPDATE

This Update on Dams, Options and Related Issues from SANDRP is being brought out with a hope that it will become a medium of
useful information dissemination, information sharing and interaction. The update has been produced mainly from information from
media sources, both from internet and printed editions and also from official websites and existing networks. We would be happy to
know your responses and suggestions about the update.

The update will be available both in electronic (text and word versions) and printed versions. The Updates are also available at and

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send your check/ DD in Favour of YUVA, payable at Mumbai and send it to our Delhi address. For checks from banks outside
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SANDRP                                                                                                               MARCH 2002


1. Power Finance, Financial Institutions in India’s Hydropower Sector, By Peter Bosshard, Published in India by SANDRP, March 2002, pp
132, Rs. 100/-
2. Bade Bandh, Bharat ka Anubhav Hindi Translation of WCD India Country study, By R Rangachari, Nirmal Sengupta, Ramaswamy
Iyer, Pranab Banerji & Shekhar Singh, SANDRP, 2001, pp 268, Rs. 100/-.
3. The Drought, the State and the People: An Experience in Gujarat SANDRP Dossier on Gujarat Drought 2000, Edited by Sanjay Sangvai,
pp 90, Rs. 75/-.
4. Large Dams and Their Alternatives: South Asia Consultation Dossier on WCD South Asia Public Hearing, 1999, pp 166, Rs. 100/-.
5. Report of the Daud Committee on Sardar Sarovar Displaced, Govt. of Maharashtra, SANDRP a co-publisher, pp 54, Rs. 30/-.
6. Dam Vs Drinking Water: Exploring the Supreme Court Narmada Judgement, by L C Jain, Parisar Publication, 2001, pp 131, Price Rs. 75/-.
7. Proceedings of the Consultation on the Report of the World Commission on Dams, Ranchi 7-8 August, 2001, Edited by DK Mishra, Barh Mukti
Abhiyan, Oct. 2001, Rs. 40/-.
8. Testimonies from the Ground: A Report on Tehri Rehabilitation by Vimal Bhai and Preeti Sampat, SANDRP, Nov. 2001, pp 35, Rs. 20/-

Please send your orders with check/ DD in favour of YUVA, payable at Mumbai and send them to SANDRP, c/o 53B, AD block,
Shalimar Bagh, Delhi 110 088. Add Rs. 15/- for check realization charges if check is drawn on a bank outside Mumbai. Add Rs. 20/-
for postage and packing charges for all publications.

SANDRP                                                                                                                      MARCH 2002