UPDATE
ON DAMS, OPTIONS & RELATED ISSUES
SANDRP
ISSUE TWO
JANUARY 2002
INDEX
DAMS
WTO & WATER
Bhakra-Sutlej Project Impacts, Affected yet to be resettled
WATER POLLUTION: CAG warns on water pollution
Ranjit Sagar dam oustees not resettled
Sutlej turns toxic; HC bans Fishing in Sutlej
Gujarat approves irrigation project :Vyas calls impractical
Yamuna Pollution
V Shiva on Arundhati Roy; Shabana Azmi on Medha Patkar
FISHERIES: Inland Fish production can go up 10 times?
TEHRI
Fishing rights of Adivasis
SANDRP REPORT: No R&R master plan in Tehri project
AGRICULTURE: Pest-related crop damage
SARDAR SAROVAR PROJECT: Rising costs
Board for organic farming mooted
SSP REHABILITATION
Farmers’ suicide in Karnataka
Massive fund misuse by Gujarat Govt. alleged
FOODGRAINS PROCUREMENT
DAM AND DROUGHT AFFECTED JOIN HANDS
FOOD SECURITY
Maan dam affected tribals on the roads again
High price and low purchasing power
Strange case of Maddualasa dam
No food security in the country
GOI on WCD
Supply of foodgrains to drought-affected areas
HYDRO PROJECTS
ABOUT THE UPDATE
Clearance to Lower Subansiri HEP Revoked
2 B lack food security
NHPC pulls out of Koel-Karo project
FLOODS, LANDSLIDES, DISASTERS
Almatti most expensive HEP
Kerala landslide
Failure in NHPC’s Chamera II CAT
National Disaster Mitigation Summit
New Hydro power policy soon?
Damage in AP
Rankings study of Hydropower
POWER FINANCE
Daulasidh project
Govt. plans $1 B power fund
CAG Report confirms S.Kumars financial malpractices
WB loan for Power Grid
Loktak Dam Impacts
PFC to refinance IFCI guarantees
NATHPA JHAKRI: A FIRST RATE SCANDAL
POWER ‘REFORMS’
Malana Project Fined for Environmental Violations
West Bengal proposes law to check power theft
IRRIGATION: Water Ministry wants power subsidy to go
Spectrum Shareholders to move CLB, Cong to CBI
Karnataka Water policy gets cabinet nod
MP power reforms face opposition
Kanyakumari Irrigation in trouble
NTPC notice to UP, MP, Orissa
SOUTH ASIA: Mighty Indus on Deathbed in Sindh?
Proposal to set up 400 power circle profit centres
Pancheshwar DPR delayed
Power Grid notice to Delhi, Bihar, UP
Melamchi Project attains financial closure
T&D loss reduction figures ‘incorrect’
Norway aid for HEP in Nepal
NTPC rules out gas-based plant in Bengal in 10th plan
US JETS HIT AFGHAN DAM; UN fears 'disaster'
WE AWAIT YOUR RESPONSES
AROUND THE WORLD: Capacity shrinks as dams silt up
Ethanol with petrol
QUOTES
Tata Power bags first private transmission project
Pak Mun Gates to remain open for one year: Victory of struggle Scan America proposes to set up three projects in Gujarat
WB’s dishonesty
POWER OPTIONS
WB Approves Bujagali Dam Despite Major Risks
92 paise loss on every unit sold by SEBs
Ilusu Dam in Turkey: Balfour Beatty withdraws
PUBLICATIONS AVAILABLE WITH SANDRP
LESOTHO: Huge Protest Over Large Dams
Gujarat yet to tap wind energy potential
World’s lakes threatened
ENRON SAGA
NGO Statement at the Freshwater Conference
HUMAN DEVELOPMENT ISSUES
WATER OPTIONS: Productive use of wetlands
Central Minister advocates private sector for rural development
More Water for whom?
MDBS
CGWA directs for rainwater harvesting
BIG QUAKES MAY HIT DELHI
WATER SUPPLY: Regulatory Commission in AP
NEW BOOKS, REPORTS
Lokayukta indicts Delhi Jal Board for corruption
Hydropower Schemes of Uttaranchal
CONTACT INFORMATION: Himanshu Thakkar, Bipin Chandra, South Asia Network on Dams, River and People,
C/o 53B, AD Block, Shalimar Bagh, Delhi 110 088. India. Ph: 747 9916. Email: cwaterp@vsnl.com
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
DAMS
Bhakra-Sutlej Project Impacts The ejection of the silt
from an open hydel channel and reservoir of the BhakraSutlej Link projects has ravaged the fertile Balh valley of
Mandi district (HP) since the completion of the project in
1977. The problem of the disposal of the huge quantity of
silt had not been conceived while designing the project
and the BBMB have been evading a permanent solution
for the menace since the past 24 years, as a result of
which a large area of the valley have turned in to desert.
(THE TRIBUNE 29/12/01)
Bhakra Affected yet to be resettled “Many of those
displaced for the Bhakra and Pong dams have still not
been resettled”, said HP Revenue Minister in the
assembly. Once the land was acquired, nobody bothered
and promises of jobs were not honoured. Over 500
families displaced by Pong dam are yet to be resettled.
Over 700 of the Bhakra dam oustees were still awaiting
rehabilitation. The HP Govt. has promised to formulate
an R&R policy. (THE HINDU, THE TRIBUNE 20/12/01)
Ranjit Sagar dam oustees not resettled Ranjit Sagar Dam
oustees of Dalhousie tehsil have resolved to stage a
protest in front of the office of the Punjab Chief Minister
in Chandigarh if members of the 218 (out of total 537)
affected families are not provided with jobs at the project.
The families have written to the Punjab and Himachal
Pradesh Governments many times about their grievances
but to no avail. (THE TRIBUNE 05/12/01)
Gujarat approves irrigation project that Vyas calls
impractical, election balloon The Gujarat govt. has
approved a major irrigation project based on Narmada
waters to be released through a pipeline network in North
Gujarat's Mehsana, Sabarkantha, Banaskantha, Patan and
2
Gandhinagar districts. Narmada waters would be pumped
from two places and released in eight reservoirs like
Dharoi, Hathmati, Meshwo, Dantiwada, Sipu, Guhai and
Chimnabai. The water would result in an additional
agricultural production of over Rs 12 B per annum. The
govt. would also save a sizeable amount of around 25 %
on subsidy given to farmers on power consumption.
However, the former Narmada minister, Jaynarayan Vyas,
has said "it would be a cruel joke on the people of north
Gujarat to show them another impractical dream with just
one and a half years left for the elections". Vyas says the
project would be expensive and impractical and would
need 1,200 MW of electricity for lifting waters to the
dams, considerably more than what the alternative link
canal would need. He insists, "No such alternative plans
should be taken up without concrete study and
discussions with experts and representatives from north
Gujarat." Vyas says the Survey of India has already
completed a study pointing towards the feasibility of the
alternative link canal that would help irrigate 10,000 sq km
area out of a total of 20,000 sq km in north Gujarat. Vyas
has shot off a letter to state finance minister who has
stated that a sum of Rs 1.75 B would be set aside from
this year's budget for the Rs 30 B project. (THE TIMES
OF INDIA-A 28/11/01, 3/12/01)
Govt apathy may delay Kalpasar project The Gujarat
government's Rs 250 B Kalpasar project, which plans to
convert the Gulf of Khambhat into a fresh water lake
would kick-start only after 2011. The govt. has so far
spent Rs 180 M on the pre-feasibility study. The govt.
proposes to pump in another Rs 1.5 B to Rs 2 B on the
feasibility report. As per the pre-feasibility study, even if
the Narmada dam height is raised to 138 metres, 90 % of
Saurashtra and 95 % of Kutch would not get water. (THE
TIMES OF INDIA-A 18/12/01)
Power that comes from fearlessness: Vandana Shiva on Arundhati Roy At a time when the courts are systematically ruling
against the poor and the marginalised and in favour of the powerful and elite interests, against the public good and in
favour of private gain, Arundhati had the courage to speak for justice. The rights of people displaced by large dams have
been trampled upon in the Narmada case. Now the ancient town of Tehri is to be buried under the watery grave of the
Tehri Dam. At a time when few thinkers and writers could find words to respond to the condemnation of the polarised
non-option of “you are either with us or you are a terrorist”, Arundhati did use powerful words. Power that comes from
fearlessness. (THE TIMES OF INDIA-D 30/12/01)
Dis-empowered get further victimized: Shabana Azmi on Medha Patkar This is a woman possessed, a woman
uninterrupted, a woman who has vowed not to rest till the highest echelons of power in the country are forced to reflect
and to answer the simple question she asks "whose progress is this and at whose cost"? It can't be the progress of a few
at the cost of many. If we ask people to vacate their ancestral lands in the name of "development", surely they have a
right to expect to be the first beneficiaries of that "development"? Instead we see again and again that the poor and the
disempowered get further victimised because they are kept out of the decision-making process. How would the people of
Malabar Hill in Mumbai react if they were asked to leave their homes for the "greater common good"? (THE TIMES OF
INDIA-D 30/12/01)
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
3
TEHRI
Chipko leader’s plea on Tehri Mr. Sunder Lal Bahuguna has urged Members of Parliament to persuade the Govt. to
postpone the eviction of residents of Old Tehri town and adjoining areas which would be submerged by the Tehri Dam.
Although the Dam may withstand earthquakes, the surrounding fragile hills that make up the sides of the reservoir may
collapse due to the earthquake and spell havoc to the regions downstream, he said. (THE HINDU-D 29/11/01)
PM to decide on closing key tunnels of Tehri dam The final decision to shut down two diversion tunnels of Tehri dam
would be taken by the Prime Minister, official sources said. Earlier, the project authorities had tentatively decided to close
the two tunnels in October-November 2001. The only hindrance in the work is coming from the local people, living
around the dam, who want adequate compensation. According to the District Magistrate of Tehri, over one lakh people
from 109 villages, which will be submerged in the waters of the reservoir once the two tunnels are closed, are to be
rehabilitated in Pashulok and Pathri areas of Dehra Dun and Hardwar districts respectively. (THE DECCAN HERALD
14/11/01)
Closing down of Tehri dam tunnels The Central govt. has given clearance for shutting down two diversion tunnels (T-3
and T-4) of the Tehri dam and the gates were closed on 30 November 2001. For the first time in history, river Bhagirathi
stopped flowing. The flow of the river have been diverted through the T-1 and T-2 tunnels. The other two tunnels are to
be closed by March 2003 and it will take another two years to fill the reservoir of the highest dam in India. After shutting
down of the tunnels the submergence process of the two-century-old Tehri town has begun. (NAVBHARAT TIMES
01/12/01 & 07/12/01 and HINDUSTAN TIMES-D 07/12/01)
Water enters Tehri town The second phase of construction of Tehri Dam project has started. The water of the reservoir
also entered in to the Bahuguna’s Kutiya. Mr. Bahuguna, who has been opposing the dam for over 20 years now, wished
that the authorities had waited for a decision in the two cases pending before the Supreme Court before flooding the
town. The issue is one of “gross violation of human rights” and a case is pending before the NHRC, he said. (THE
HINDU-D 08/12/01)
Time bomb called Tehri dam The 260.5 metre high dam is located in an active seismic zone in the fragile and young
Himalayan ecology. Between 1816 and 1991, 17 quake have hit the region. Eminent seismologist Mr. Vinod Gaur has
reportedly appealed that the dam could lead to dangerous consequences. The ICOLD has declared the site “extremely
hazardous”. If a quake of magnitude 8 on the Ritcher scale or more hits the dam, Rishikesh could drown in 63 minutes
flat, followed by Hardwar. In February 1980, the Central Environmental Appraisal Committee went on record: “Taking
on consideration the geological and social impacts accompanying the project… the Tehri project should not be taken up
as it does not merit environmental clearance,” the clock, it seems, won’t be turned back. But for the people, it could be
time bomb that goes on ticking. (Editorial in HINDUSTAN TIMES-D 11/12/01)
Apathy drives Tehri people to go on fast Residents of the Tehri town began a fast in protest against the government’s
“indifference” to their rehabilitation in the event of their displacement by the Tehri project. They were also demanding
extension of civic amenities till completion of the rehabilitation process. (THE TIMES OF INDIA-D 12/12/01)
SANDRP REPORT: No R&R master plan in Tehri project A report on Tehri rehabilitation, conducted by South Asia
Network on Dams, River and People, charges that “…no accurate data on the number of people affected is available.”
The report notes that the Environmental Impact Assessment for the project estimated the number of affected persons to
be 97,000 in 1999 but data available with the THDC puts the number at a mere 67,500. Report also says, “large number
of affected people are not even included in the R&R package.” The report states “twenty six year after project
construction began, there is still no R&R master plan.” The report shows that nearly 70 per cent of the rural families
affected by the project and 90 per cent of those in the partially affected category have not received their resettlement
benefit. Besides, over 93 per cent of ex-gratia has not been paid yet. At last the report said that, all construction on the
Tehri dam must cease until a just resettlement plan is implemented. (RASHTRIYA SAHARA 26/11/01, HINDUSTAN-D
10/12/01 THE TIMES OF INDIA-D 14/12/01, TRIBUNE 31/12/01)
The full SANDRP report Testimonies from the Ground: A Report on Tehri Rehabilitation was released on Nov. 23, 2001. The
report is available with SANDRP (wee box on publications) and also on internet (www.janmanch.org/newsletters).
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
4
SARDAR SAROVAR PROJECT
Rising costs The cost of the SSP, Rs 64.06 B in 1986-87, was revised to Rs. 130 B by 1996-97. Over the last couple of
years the cost moved from Rs 180 B to Rs 240 B to now at Rs 300 B. SSNNL’s opinion is that the realistic project cost
will be over Rs 400 B. All this financial jugglery is bound to hurt Gujarat. Not surprisingly, the Gujarat Govt. has not
been too forthcoming with the nitty-gritty on the cash to be generated if the project were to achieve financial closure in
the next couple of years. The amount spent so far is Rs 118.2 B. (BUSINESS LINE-D 05/12/01)
SSP REHABILITATION
Gujarat, MP Govts want to give cash compensation The Gujarat govt. is determined to go ahead with the idea of giving
cash compensation to MP oustee families to be submerged because of SSP. "If necessary, we will amend Clause 11 of the
NWDA, which specifically refers to the oustees resettlement issues by introducing cash compensation as an option,
proposed by MP at the last NCA meeting", said a senior bureaucrat. Officials are of the view that there is "no legal
hurdle" in amending the award. (THE TIMES OF INDIA-A 11/01)
*
The MP CM has started making moves to have the NWDT award to be re-opened to allow for cash
compensation instead of land to the people who will be displaced by the SSP. MP CM had an informal meeting with the
Gujarat CM to build a consensus on the issue, where Gujarat CM agreed to pay Rs. 2.39 B to MP for providing cash
compensation. MP will have to rehabilitate the maximum number of oustee families estimated at over 33,000. The four
concerned States and R&R sub Group of NCA, headed by secretary, Union Ministry of Welfare have to be in agreement
to open the award. NBA has called the move illegal and in violation of NWDT and also in violation of the Supreme
Court orders. Prominent persons and various organisations in Maharashtra have condemned the move. They demanded
that, if the state governments cannot provide land for the PAFs, they should suspend the work on the dam, think of
alternatives to the project. (The Hindu-D, Rashtriya Sahara 14/11/01, NBA Press Note)
Brutal lathi charge on peaceful protesters The MP Government continued its spree of police repression in the Narmada
valley as it brutally lathi charged peaceful protestors in the village Chotta Badada (Dist. Badwani, M.P) badly injuring
more than 15 people who have been under arrest and admitted in the hospital at Badwani. MP Government has been
trying to carry out surveys in the villages affected by SSP. However, the people of the valley have been opposing these
surveys as they are saying that the Government has shown no sincerity to resettle the people, the arrangements for
resettlement are not in place and there is no land available for the same, resettlement Master Plan is available. These
surveys are being carried out only to make a show that some work is being done on resettlement. (NBA 25/11/01)
* Narmada Villagers Warn Against State Terrorism in Madhya Pradesh Hundreds of men and women from the villages in
the Narmada Valley were out on the roads in Badwani on Dec. 3, to protest and warn the MP government against the
doublespeak, continuous repression and the inhuman policy of displacing the people by threat and force. The wayward
and heinous method followed by MP government in the villages of Nimad, in the name of surveying the villages, for past
two months was condemned by the people and they resolved to fight against this state-terror and unjust policy. The MP
govt. has been intimidating villagers affected by the SSP, to displace, that too with the cash compensation in violation of
the NWDT provisions. (NBA PR 04/12/01)
No progress in SSP height 1,597 project affected families - 1,217 in Madhya Pradesh, 363 in Gujarat and 17 in
Maharashtra - would need to be resettled in case the Gujarat govt. agrees to take the SSP dam to 95 metres at the next
official meeting of the NCA. The dam height is stationary at 90 metres for the last more than one year. The total number
of PAFs at 95 metres dam submergence level is 9,864 belonging to 110 villages. Out of these, 5,397 belong to 70 MP
villages, 1,700 belong to 26 Maharashtra villages, and 2,767 belong to 14 Gujarat villages. Of these, 5,847 are claimed to
have been resettled in Gujarat, 1,021 in Maharashtra and 1,399 in MP. (THE TIMES OF INDIA-A 07/12/01)
Massive fund misuse by Gujarat Govt. alleged The CAG has said that Gujarat Govt. is guilty of financial irregularities of
up to Rs 29.71 B as on March 2000. The former CM Chhabildas Mehta said that amount was closer to Rs 40 B one year
hence. The allegation of massive fraud being perpetrated by the Govt. on Planning Commission and the State Assembly
points at irregularities concerning 1,268 Public Ledger Accounts. Gujarat financial health is highly suspect as unpaid bills
are piling up in departments for which the funds were originally released in to the PLAs. The SSP is understood be
leading the list in unpaid bills to contractors. (BUSINESS LINE-D 19/12/01)
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
5
DAM AND DROUGHT AFFECTED JOIN HANDS IN MAHARASHTRA
The purpose of this is to keep you informed of this movement and also elicit your support. Some path-breaking and
innovative aspects of the movement are as follows:
Innovative demands and achievements: Equitable water distribution The movements demands that around 2500 to 3000
m3 of water has to be provided to each household from an assured source as a basic service to meet livelihood needs. As
a result of the struggles, the Maharashtra Krishna Valley Development Corporation (MKVDC) had to agree to take up a
`pilot project' in Atpadi taluka of Sangli district and also has agreed to work out a plan to restructure the Tembu lift
irrigation scheme which is to provide water to Atpadi and other adjoining talukas. The movement forced the MKVDC to
have regular joint meetings and now the MKVDC has submitted the alternative proposal to the Government for
approval. The struggles would go on till the scheme is restructured in more equitable lines.
Monthly water stipend (Pani Bhatta) Another innovative demand has been in the case of dam affected persons. Under
the latest rehabilitation package of the government, the oustees are supposed to get alternative land in the command areas
of the projects meaning that the government is supposed to provide irrigation to them. So, two years back, the
movement demanded that the government should pay the difference in production between irrigated and unirrigated
agriculture to the oustees till they get irrigation water. After prolonged and intense struggles, finally the government
agreed to pay Rs. 600 per household per month to the oustees as Pani Bhatta. Even to get this they had to organise
agitations and as a result many of the oustees from dam sites in Satara, Sangli and Kolhapur districts got the Pani Bhatta
for the initial 3 to 4 months. However, there is a backlog, as the government has not paid the Bhatta for the last many
months.
'First rehabilitation, then dam construction' The movement because of consistent struggles could force the government
agree to certain well-defined procedures. In the case of Urmodi Dam in Satara district, a couple of years ago even Bal
Thakarey had to go back without laying the foundation stone, though the programme was announced well in advance,
because of the opposition from the organisation. They allowed the laying of the foundation stone only after they got
written orders for a time bound rehabilitation programme including the 13 civic amenities and also water guarantee for
the alternative land. In fact this has come to be known as the 'Urmodi pattern'.
'First water distribution from old dams, then construction of new dams' The struggle raised the demand that before any
new dams are constructed in the region, the water available from existing dams and sources should be released and
distributed equitably.
The new demand of 'First provide water to the command areas of existing dams; only then will we allow construction of
new dams'. This pertains to providing water in this Rabi season to people in Patan and Karad talukas, by completing the
necessary work on Urmodi, Tembu, Uttarmand and Wang dams. In the meanwhile, water from Koyna and Kanher dams
should immediately be made available to these talukas. If some funds remain available after completing work on all these
existing dams, then alone should new dam construction be allowed. Adequate finances should immediately be made
available for the effective functioning of the Kanher lift irrigation scheme.
Creative organisational strategies A highly innovative and effective strategy adopted by the movement has been to unite
dam-affected people and the beneficiaries of the dam under a common banner.
Another important strategy has been to demand comprehensive information and propose concrete alternatives to Govt.
dam projects. An important example of this approach has been in case of the Uchangi dam in Ajara taluka of Kolhapur
distt. where the movement, with inputs from experts, obtained critical information from the irrigation dept., proposed to
reduce the height of the proposed dam and build another two smaller structures so that the water availability is not
compromised and destructive submergence is also reduced. As a result of the struggles and negotiations the government
agreed to reduce the height by a couple of meters so that no house in the village 'gaothan' gets submerged. The
government also agreed to construct another small dam as suggested by the movement.
Anant Phadke, K. J. Joy, Seema Kulkarni, Nagmani Rao, Sandhya Phadke, Abhay Shukla, R. P. Nene, Prashant Kunte,
Raju Adagale, Shailesh Dikhale, Ulhas Gore, Amulya Nidhi, Amita Pitre, Malavika
(Abridged from a message on DNRM Listserve on December 25, 2001)
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
Maan dam affected tribals on the roads again Nearly 500
Adivasis affected by the Maan dam under construction in
Dhar district in MP marched through the streets ending at
the Collector’s office. The affected Adivasis are
demanding that they be given land as per the
rehabilitation policy and as is their legal entitlement and
that without this their lands may not be submerged. If the
government refuses to give them this land, the people
refuse to leave the lands of their forefathers. The affected
people also demanded immediate stoppage of the dam
work. They pointed out that the NVDD had in its own
report of October 2001 stated that most of the families of
even the initial villages were yet to be rehabilitated. (NBA
PR 25/12/01)
Strange case of Maddualasa dam The construction of a
dam across the river Suvarnamukhi in Vangara mandal of
Srikakulam dist of AP started in 1976 at an estimated cost
Rs 70 M. The total expenditure on the NABARD funded
project so far has been 1.12 B and it is likely to be
completed by next June, to irrigate about 24,700 acres of
land. 25000 people (roughly 5000 families) are going to be
displaced by next June along with 13,500 acres including
8,500 acres of double crop-irrigated land. So far 3000
acres are submerged and the rest of 10500 acres is to be
submerged along with 10 villages once they erect gates.
This issue has been kept in dark by the state authorities.
The Govt. has given relief for 2000 acres at the rate of
Rs.6000/- per acre for some and Rs. 30,000 for some
others in different phases of the project. They have
provided housing for 750 families of a village and the rest
of the 4250 families expected to fend for themselves. (Email
from
ANDHRA
PRADESH
VRUTHIDARULA UNION, 20/12/01)
VYAVASAYA
GOI on WCD According to information given in the
Parliament, the WCD report has stated that the impact
due to large dams are more negative than positive and
have led to the impoverishment and suffering of millions.
The number of big dams under construction in India is
695 (as per National Register of Large Dams published by
CWC, 1994). There is no proposal to review the policy of
construction of big dams in the country as a result of the
WCD report. India proposes to continue with its
programme of dam construction to create another 200 B
cubic meters of storage in the next 25 years. (PIB
27/11/01)
What is amazing about the above piece is that the
members of Parliament are given unbelievable seven year
old (and mostly unfounded) figure about such gross
aspect like number of dams under construction. Does it
show anything about the state of information with our
water resources establishment?
SANDRP
6
Diversification of west flowing water The average annual
surface water availability in the west flowing rivers from
Tapi to Kanyakumari including the west flowing rivers of
Karnataka and inter-state rivers have been assessed as
200.9 B Cubic Meters by Central Water Commission. As
per CWC drought prone areas in Karnataka has been
assessed as 57,645.54 sq. km. Ministry of Water
Resources have formulated a National Perspective Plan
for Water Resources Development which envisages inter
linkages among the various Peninsular rivers and
Himalayan rivers for transfer of water from presently
assessed surplus basins to water deficit basins for the
optimum utilisation of water resources. The prefeasibility
reports of the above links have been completed by
NWDA. As per the pre-feasibility reports, the irrigation
benefits to Karnataka State from Bedti-Varda and
Netravati-Hemavati links are 60,000 Ha and 34,000 Ha
respectively. (PIB 27/11/01)
HYDRO PROJECTS
Clearance to Lower Subansiri HEP Revoked According to
a letter from Union Ministry of Environment and Forests
dated Nov. 2, 2001, the site clearance given by the
ministry for the proposed 2000 MW Lower Subansiri
HEP in Arunachal Pradesh has been revoked as 42 Ha of
Talle Wildlife Sanctuary would come under the project
and “As dereservation of sanctuary area is prohibited by
the Supreme Court of India vide its order dated
13.11.2000 against write petition No. 337/95”. (SANDRP)
NHPC pulls out of Koel-Karo project NHPC has 'decided'
to wind up the 25-year-old 710-MW Koel-Karo project,
said NHPC Chairman. He said the project remains
grounded despite the assurance of Jharkhand CM. "We
are losing patience," he said. He has given the State
Government three months, till March 2002, to take a
'decision' or allow the project to wind up. (THE
HINDUSTAN TIMES-D 25/12/010)
Almatti most expensive HEP The Karnataka Power
Corporation is likely to derate the capacity of the Almatti
HEP. The capacity is currently pegged at 297 MW. A
derating to about 165 MW would be necessary to bring
down the tariffs to under Rs 3 a unit. The current
estimate of project tariff is in the region of Rs 4.73 a unit
in the first year. This tariff makes Almatti the most
expensive HEP in the country. (BUSINESS LINE-D
31/12/01)
Failure in NHPC’s Chamera II CAT The HP Govt. has
failed to implement the Catchment Area Treatment Plan
for the ongoing 300 MW Chamera II HEP in Chamba
district. The main reason for this reportedly the halfJANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
hearted approach of the govt. besides
mismanagement. (THE TRIBUNE 05/12/01)
7
resource
New Hydro power policy soon? “In two months time, the
govt. will come out with guidelines through National
Hydro power Policy, detailing the ecological and societal
issues to be addressed while coming up with HEPs” and
also set up a Power Fund for power generation by tapping
the foreign and domestic debt markets, Minister of Power
said. (THE DECCAN HERALD 05/11/01)
Rankings study of Hydropower The Brahmaputra River
System with 168 HEP sites has received the highest marks
in the Preliminary Ranking Study by CEA of the potential
of hydro sites for all river basins in the country. India has
a potential of 150 000 MW of hydroelectric power and
24.6 % of this potential has been exploited so far. The
CEA has taken 10 major aspects into account while giving
marks. These are Reform & Restructuring aspects,
International aspects, Inter-state aspects, Potential of the
scheme, Type of scheme, Height of dam, Length of
tunnel/channel, Accessibility to site, Status of the Project
and Status of upstream or downstream hydro
development. The study of about 400 hydro schemes with
an aggregate installed capacity of about 107 000 MW
which are yet to be developed gives weightage ranging
from a minimum of 6 marks to a maximum of 15 marks.
Depending on the marks allotted, the schemes have been
categorized into Grade A (80 marks and above), Grade B
(60 to 79 marks), Grade C (40-59 marks), Grade D (20-39
marks) and Grade E (upto 19 marks). 98 schemes of 15
650 MW are in category ‘A’, 247 schemes of 69 830 MW
in category ‘B’ and 54 schemes of 21 420 MW in category
‘C’. Hydroelectric projects of 16 291 MW and 22 364 MW
have already been identified tentatively for benefits in the
X and XI Plan respectively. (PIB 09/11/01, 05/12/01)
Campaign for Hydropower The Govt. is to launch a
campaign for hydropower. Almost all the hydropower
potential is concentrated in northern and northeastern
states. Govt. had initiated a process of three-stage
clearance of power projects to avoid any cost and time
over-runs. Union Power Minister ruled out single-window
clearance for HEPs, saying various agencies and State
Govts. were involved and clearance from them would be
required. (DAILY EXCELSIOR-J&K 06/12/01)
NHPC plans NHPC has plans to invest Rs 400 B during
the 10th plan for which it has sought a budgetary support
of Rs 200 B. In the 11th plan NHPC plans to invest Rs
570 B including 90 B budgetary support for adding 11 500
MW. NHPC plans to add 13 500 MW during 12th plan at
an investment Rs 980 B. The corporation would invest
over Rs 100 B in MP for 1 000 MW Indirasagar and 520
MW Omkareshwar projects and another Rs 8 B for a 900
SANDRP
MW joint venture project in W Bengal. (THE INDIAN
EXPRESS-D, THE TRIBUNE 25/12/01)
*
The Power Ministry is planning to link the
Centre’s participation in MP’s 1000 MW Indira Sagar
HEP to the settlement of SEB’s dues to the Central
power Sector Undertakings. MP has so far spent around
Rs 11.50 B on the project. As per the cabinet proposal,
MP’s contribution will be treated as equity in the
proposed joint venture. (BUSINESS LINE-D 08/11/01)
Daulasidh project The HP CM has announced that the
work on the 80 MW Daulasidh power project in
Hamirpur district will start soon. The Kangra central Cooperative Bank has offered Rs 1 B loan to the state govt.
for the project. (THE TRIBUNE 04/12/01)
CAG Report confirms S.Kumars financial malpractices
The CAG report for the year ended 31 March 2000
(Govt. of Madhya Pradesh, No.2 of 2000, Commercial)
has pointed out that the S.Kumars have not even paid the
MPSEB, the money that is owed to them, since the
Maheshwar Project was privatised and transferred to the
SMHPCL. In the words of the CAG Report "Maheshwar
HEPS and Pench TPS were sold to private parties in
November 1992 and July 1994 respectively for a value of
Rs. 861.10 M. Till date amount has not been realised."
The report also pointed out that the MPSIDC gave a loan
to the S.Kumars company - the Induj Enertech Ltd. "in
contravention of the powers of the Board as it exceeded
Rs 30 M" and which was "without prior approval from
the state government." Moreover, the Madhya Pradesh
State Industrial Development Corporation had issued a
public notice in the Economic Times of 13/9/01 that
states "Induj Enertech Limited Mumbai (Formerly
S.Kumars Power Corporation Ltd.) & M/s Modak
Rubber Textile Industry Pvt. Ltd. Mumbai companies of
the S.Kumars group are willful defaulter in repayment of
overdue principal and interest more than Rs. 11.08 crores
towards financial assistance given by us on promise of
prompt and timely payment”. (THE HINDU-D 19/11/01)
Loktak Dam Impacts With the Govt. disengaging from
taking up measures to save the Loktak Lake citing
financial constraints, the overall eco-system of the lake
has degraded to a dangerous level. Apprehensions have
been sounded that the Lake may go the way of
Lamphelpat and Keishampat. The shallowing of the lake
that contributes substantially to fish production, water
chestnut, Thangjing for the around 24 lakh people of the
State besides supplying power, is one of the biggest
worries of the environmentalists. Another matter that
needs special attention is the dumping of garbage into the
lake by the Nambul river. (www.e-pao.net http://www.epao.net/)
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
8
WB FUNDED NATHPA JHAKRI: A FIRST RATE SCANDAL
The Nathpa Jhakri Power Corporation is extending the deadline for the completion of 1 500 MW Nathapa Jhakri Project
for the third time, the cost of the project has more than doubled during the execution period. According to NJPC’s latest
estimate, the project will now be completed at a cost of Rs 91.69 B. With the latest revision, the cost of the project will be
more than Rs 61 M per MW, the highest in HP for any HEP so far. The project was handed over the NJPC in 1991 and
by that time its cost had increased to Rs 43.38 B and the generation cost worked out to Rs 1.37 per unit, while it currently
estimated at Rs 3.02 per unit. The WB has suspended disbursal of further loans to the project. Out of its total
commitment of about $ 440 M, the WB is yet to disburse about $ 100 M. PFC has agreed to give Rs 9 B for the project.
Work on the NJP was stopped again (for the second time in this year alone) from Nov. 30 for “serious and continuous violations
of both the Forest Conservation Act and the Environment Act”. The work has reportedly been stopped as special permission to
continue it was not renewed beyond Nov. 30. The Ministry had earlier extended special permission for a second term of three
months after Chief Conservator of the Ministry visited the project site and order suspension of all work in April this year. The
rehabilitation and catchment area treatment plans submitted by the NJPC had not yet been approved. The corporation had not
sought any permission for depositing debris of the 27 km long tunnel along the bank of the Sutlej river which was being done at
a steep angle. Further, no permission was sought for quarrying and mining in the forest area, which was in violation of the
Supreme Court order in writ petition no. 202. NJPC official admit that the Forests and Environment Department has objected to
the dumping of debris, which was partially responsible for the floods in the Rampur area this year. The Ministry gave yet
another extention of six months to the project to continue work on Dec. 18, after imposing “penal afforestation” on the
corporation, to the extent of 89 Ha and reclaim the dumping sites at its own cost. A formal order of relaxation is to be
issued after NJPC submitted a compliance report.
The chairman of the NJPC (& NHPC) has accused the CEA and CWC of being responsible for delay in the completion
of the project, which has resultantly pushed up its cost by 546% to Rs 91.69 B. He pointed out that the project had
suffered time overrun of more than 5 years as certain designs were not completed by CEA and CWC (engaged by NJPC
as principal consultants) according to the schedule. Work on the Project was suffering because of improper and
unsuitable designs and an investigation by the Power Ministry standing committee should fix the responsibility, NJPC
wrote in his letter to the ministry. The original estimated cost of the project was Rs 16.78 B in 1989, which was revised to
Rs 43.37 B in 1993, to Rs. 76.66 B in 1997. The project has suffered massive landslides of about 1.3 M cubic metres at
the dam site even before the first blast.
As far as mega HEPs are concerned, words like “tomorrow” are just not applicable. One has to think in terms of eternity.
That is what happened in the case of the NJP. Irked by the long delays and escalating costs, the World Bank, which had
provided a loan of $437 M for the ambitious project, has considered it prudent to cry off. The international lending
agency is not new to the Indian pace of work. The tempo shown by this particular project, coupled with indecision and
irregularities, must have been exceptional for it to suspend the loan. That indeed is the case. It was given full 12 years ago
and is the oldest in the WB portfolio of active loans. It was even extended four and half years from its earlier closing date
of Dec. 1997. The delay did not make anyone mend his ways. So what if the cost of the project escalated from Rs 1,678
crore in 1989 to Rs 9,500 crore now! Add to that the loss suffered because of no generation of power for all these years
and you have a first-rate scandal at hand. However, since such "minor troubles" are encountered at almost every project,
no heads ever turn, let alone roll.
Ironically, there is no trace of repentance in the response of those responsible for the timely execution of the project. On
the contrary, they are saying rather nonchalantly that they would now tie up with the Power Finance Corporation to fund
the shortfall, as if the World Bank action is no humiliation. Another bold claim that is being made is that there will be no
delay in the commissioning of the project scheduled for early 2004. That is a tall order as the World Bank withdrawal is
very much likely to set back the project by months, if not years. After all, 2002 is not the last year of the calendar. Years
come and go. Projects must go on! (Edit in THE TRIBUNE 21/12/01)
The World Bank will also have to answer a lot of questions on its continued involved in this project for over a decade.
John Briscoe, Advisor to World Bank president described NJP at a meeting in Delhi in May 2000 as an ideal kind HEP of
India. The question is, if such is the case of ideal HEP, what will the situation of others? WB’s continued involvement in
the project is also questionable from the fact that the Quality Assurance Group of the Bank in 1999/2000 after a review
of the NJ loan rated it as "unsatisfactory at entry". (THE TRIBUNE 30/11/01, 17/12/01, 14/12/01 & 20/12/01; INDIAN
EXPRESS 19/12/01; THE HINDU-D 20/12/01, SANDRP)
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
Malana Project Fined for Environmental Violations
Fearing criminal action for felling 1400 green trees in
Kullu district, the Malana Power Company today
deposited Rs 6.3 M with HP Forest Department as the
price for the trees. The company had felled the trees
spread over 61 Ha at Jari village while setting up the 86
MW Malana HEP. The total cost recoverable from the
company is Rs 12.3 M. The company was forced to
deposit the amount following the state Govt.’s decision to
register an FIR, besides possibilities of withdrawal of the
forest clearance by the MEF. Taking suo motu cognizance
of the report in Indian Express, the HP High Court has
issued notices to the state govt. and Malana Power
Company. (INDIAN EXPRESS 22/11/01, 28/11/01)
IRRIGATION
Water Ministry wants power subsidy to go According to
the ‘Vision document of the water sector in the 21st
century’ prepared by the Union Ministry for Water
resources, the subsidy on power must be reoriented
toward waterlogged areas to encourage conjunctive use of
the surface and ground water. The document calls for a
review of the subsidy on power for agriculture in areas
where groundwater level had gone down considerably.
(THE HINDU-D 14/12//01)
Punjab to continue free power to farm sector A day after
the High Court has directed the PSEB to ensure 3 % rate
of return as per section 59 of the electricity supply act, the
Punjab Govt. has clarified that it will continue providing
free power to the agriculture sector. The target of 3 %
rate of return will be achieved by checking power theft,
reducing T&D losses and, if necessary, by increasing the
tariff which was “the lowest in the region after HP”.
(THE TRIBUNE 09/12/01)
Karnataka Water policy gets cabinet nod The Karnataka
cabinet has approved the state water policy with a firm
commitment to complete all ongoing and committed
projects. Karnataka is only the fifth state in the country to
have a water policy of its own, said Water Resources
Minister. He said, “our priority is drinking water followed
by irrigation, hydro-electricity, aqua-culture, agroindustries, non-agricultural activities, navigation and other
uses. That will be followed by participatory irrigation
management, operational maintenance and repair and
modernisation”. (THE TIMES OF INDIA-BANGALORE
14/12/01)
Kanyakumari Irrigation in trouble The Koondakulam
Nuclear Power Project authorities are going ahead to take
water for their project from the Pechiparai dam in
Kanyakumari district and more importantly, they consider
the Godayar reservoir as the back-up. These two moves
will strike a deadly blow to irrigation activities in
SANDRP
9
Kanyakumari district that depends completely on
agriculture for sustenance and development. Squandering
these water resources will have disastrous effects on the
ecology and social fabric of this district. (The Green Party
of India, Kanyakumari)
SOUTH ASIA
Mighty Indus on Deathbed in Sindh? The water of the
Indus, which used to flow freely into the Arabian Sea, has
now receded. Since 1995, the lower Indus Basin has been
undergoing severe drought conditions. According to one
estimate, over 50 % of the fishermen, who had lived
along the Indus for generations have migrated to look for
alternative sources of income. According to the Sindh
Irrigation Department, seawater intrusion has resulted in a
tidal infringement of over 12,20,360 acres of land in the
Indus Delta – 33 % of the total land in the two districts of
Badin and Thatta in southern Sindh. It was deplored that
Sindh had always been deprived of its national, economic
and basic rights compared to other provinces. Director of
IUCN said that the ecology of Indus delta had been
destroyed due to non-availability of water downstream
Kotri for the last many years. (Women’s Feature Service
11/11/01, The Dawn 12/11/01)
Water Environmental Priority State of the Environment
Reports for Bangladesh, Bhutan, India and Sri Lanka have
identified water as one of the five environmental priorities
in each country. The UNEP with support from the
Norwegian Agency for Development Cooperation
launched the reports at the end of Sep 2001. The waterrelated priorities for each country are: Bangladesh - water
pollution and scarcity; Bhutan - pressure on and pollution
of water resources; India - freshwater resource
management; and Sri Lanka - pollution of inland waters.
(http://www.roap.unep.org/html/nr/inf01-04.htm)
Pancheshwar DPR delayed The India-Nepal joint group
of experts on the Pancheshwar project has decided to
recommend an extension of six months for the
completion of the DPR being done jointly by the two
countries. It was to be completed by Dec. 2001. Both
sides agreed that the power potential studies and reservoir
operation studies of the Pancheshwar reservoir and the
re-regulating structure would be done in a manner that
would not prejudice the existing consumptive uses of the
two countries. It was also agreed that priority would be
accorded to these studies for finalisation of technical
parameters for the various unit sizes of the power
segment. The Joint Group reiterated that officials should
proceed with investigations at both Rupaligad and
Purnagiri by March, 2002 so that the report could be
completed by June 2002. (PIB 27/11/01, THE HINDU-D
28/11/01)
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
10
Agreement with Nepal for power production from eastern
UP rivers? India and Nepal have signed an agreement on
6-7 Oct. for flood control in Rapti, Budhi Rapti and
Budhi Gandak rivers in east UP. HEPs would be set up
on these rivers and 10 % of electricity from these would
be given free of cost to Nepal. (Rashtriya Sahara 25/11/01)
Mahakali Irrigation to be completed in 20 years According
to the feasibility report the third phase of Mahakali
Irrigation Project will take almost 20 years to complete at
total estimated cost of Rs 11.160 B." About 34,000 Ha of
land in Kanchanpur and Kailali districts would get
irrigation facilities from the project. According to the
Integrated Mahakali Treaty reached in 1996 between
Nepal and India, Nepal would receive 1,000 cusecs of
water from Tanakpur barrage, 350 cusecs from the
Indian-built Sarada Canal and an additional 1,000 cusecs
of water from the Sarada barrage of the Mahakali River.
yet, but if it starts to flow thousands of people will face
the threat of death". The dam contained 2700 MCM of
water and produced 150 MW of electricity. It irrigated
land farmed by 75,000 families with more than 50,000
cattle in desert area, where water is precious commodity.
(THE TRIBUNE, TIMES OF INDIA-D 02/11/01)
*
UN fears 'disaster' over strikes on dam The UN
is warning of a "disaster of tremendous proportions" after
US planes bombed a HEP in southern Afghanistan. "If
the dam collapses the whole Helmand valley would be
flooded, risking the life of tens of thousands of people in
addition to destroying the lands benefiting around half a
million people (and feeding around a million people) ... It
is crucial to have the situation at the Kajaki dam/power
plant assessed." The 48-year-old dam is 300ft high, 900ft
long and has a 32-mile long reservoir. (THE
INDEPENDENT, LONDON, 08/11/01)
(KATHMANDU POST-N 21/11/01)
AROUND THE WORLD
Melamchi Project attains financial closure The Melamchi
World water storage capacity shrinking dams silt up Many
Water Supply Project has attained financial closure after
the Swedish government agreed to provide US$ 25 M of
which 50 % is grant. The government of Nepal would
contribute around US$ 116 M. Donor agencies providing
loan for Melamchi Project include ADB (US$ 120 M),
JBIC (US$ 52 M), OPEC (US$ 13.7 M) and SIDA (US$
12.5 M). The government of Japan has agreed to provide
with a grant of US$ 15 M. Norwegian Development
Agency have agreed to provide a grant of US$ 28 M.
(KATHMANDU POST-NEPAL 24/11/01)
Norway aid for HEP in Nepal Norway has given Nepal a
grant of Rs 48.96 M to develop “environmentally and
socially sustainable hydropower projects” from 2001-03.
(KATHMANDU POST-NEPAL 14/12/01)
US JETS HIT AFGHAN DAM US bombs severely
of the world's reservoirs are suffering significant
reductions in storage capacity as a result of sedimentation,
the head of the UNEP told the Bonn International
Conference on Freshwater. Studies indicate that, on
average, one percent of the water-storing capacity of the
globe's reservoirs is being lost annually because of a build
up of silt. The current storage capacity of reservoirs
worldwide is estimated at just less than 7,000 cubic
kilometers. The levels of erosion from hillsides, planted
with crops, are 150 times higher than from the same land
covered with trees, studies show. UNEP has launched a
new Dams and Development Project, to address serious
issues of dam development. Based in South Africa, the
DDP Unit is a follow up to the work of the World
Commission on Dams. (BBC, 04/12/01, Earth Vision
Environmental News 05/12/01) (http://www.ens-news.com/)
damaged Afghanistan’s biggest Kajaki HEP in Helmand
province, cutting electricity to two major cities, but the
giant dam is “safe”. "Water has not started to gush out
QUOTES
The National Agricultural policy aims at promoting technically sound, economically viable, environmentally non-degrading and socially
acceptable use of the country’s natural resources to ensure sustainable development.
Union Agriculture Minister Mr. Ajit Singh, The Tribune 22/11/01
Import of cheap food into the country means import of unemployment… The mischief of the developed nations on the issue of farm subsidies
needs to be exposed at WTO…
The Federation of AP Chambers of Commerce and Industry, The Hindu 08/11/01
The opinion is unanimous that large-scale infrastructure projects (such as roads and hydroelectric projects) have not been beneficial to the
mountain communities due to their goal being to provide power to the State or powerful stakeholders. Not only have such technologies been
environmentally insensitive, the approach and methodology of implementation has had little regard to peoples’ concerns and ecological systems.
(Synthesis of an Electronic Conference of the Asia-Pacific Mountain Network (APMN)
by Sudhirendar Sharma, http://www.mtnforum.org/apmn/SynthesisReport1.htm)
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
Pak Mun Gates to remain open for one year: Victory of
struggle The Thailand Cabinet agreed to the PM Office
proposal that the Pak Mun Dam sluice gates will remain
open for one year. The Cabinet in April ordered the
Electricity Generation Authority to open all of the dam's
gates for four months from May-Sept. However, villagers
affected by the dam argued four months would not give
the govt. long enough to study the changes in the river.
11
environmental and social issues inherent in the project. A
comprehensive environmental impact report was carried
out by a team of international experts to the best available
international standards as defined by the US Ex-Im Bank
and the OECD. Accordingly, in concert with its partner
Impregilo of Italy, it has decided to withdraw from the
project. Years of campaign has made this possible.
(THE NATION-THAILAND 12/12/01)
(Independent,
Guardian
www.irn.org 13/11/01)
WB’s dishonesty "The World Bank, as a key sponsor of
LESOTHO: Huge Protest Over Large Dams Over 2000
the WCD, should be actively incorporating the
Commission’s findings into its own policies and practices
and encouraging others to do so. Yet the Bank has
refused to adopt any of the WCD's recommendations into
its binding policies and has made only vague
commitments to follow some of the WCD's
recommended approaches. The Bank is also
misrepresenting or ignoring the Commission's findings on
the Bank's role in promoting poorly performing and
destructive dams." (The Development Group for Alternative
Policies and International Rivers Network PR 09/11/01)
WB Approves Bujagali Dam Despite Major Risks The
World Bank has approved Bujagali dam in Uganda that
could prove to be a disaster for that nation's citizens,
while enriching the US-based AES Corp., the largest
independent power producer in the world. The $ 520 M
Dam will destroy the culturally significant Bujagali Falls a national treasure, which also supports a growing
whitewater tourism industry - and possibly lead to the
extinction of rare fish in the Nile. Thousands of people
will lose land and access to river resources. The dam will
also lead to significant increases in Ugandans' electricity
bills. "The WB predicts that Bujagali will cause the price
of electricity to rise to 10.5 cents per KWh, and go as high
as 12.5 cents in the early years of operation. This is an
extremely high rate where the average annual per capita
income is approx. $ 300. It is not obvious how supplying
electricity at these extraordinarily high rates in such a poor
country will contribute to poverty reduction, or for that
matter, even to economic growth." The WB's own Project
Assessment Document indicates that if the Bank's very
optimistic prediction for Ugandan GDP growth of 6.3%
through 2010 does not pan out, Bujagali could prove to
be an economic disaster. The Uganda govt.'s contract
with AES commits Uganda to pay AES about $ 100 M in
US$ annually for 30 years no matter how much power is
actually produced. (IRN PR 18/12/01)
Ilusu Dam in Turkey: Balfour Beatty withdraws Balfour
Beatty, the international engineering, construction and
services group, announces that it has decided not to
pursue its interest in the Ilisu Dam. The decision follows
a thorough and extensive evaluation of the commercial,
SANDRP
14/11/01,
www.foe.co.uk,
demonstrators converged on three major dams in Lesotho
on Nov. 19 during a massive protest. Police responded
violently at Mohale Dam, injuring three elderly women.
The demonstrators, all impacted by the Lesotho
Highlands Water Project, were protesting the lack of fair
compensation for property lost to the dams, and
unfulfilled promises of development in affected
communities. The WB funded LHWP is the biggest
infrastructure project in sub-Saharan Africa. The $5 B
project is designed to divert water from Lesotho to the
urban and industrial Gauteng region in South Africa
through a series of dams and tunnels blasted through the
Maloti Mountains. The first three major dams in the sixdam scheme affected 27 000 people. Approx. 2000 of
them were resettled. Crowds of about one thousand
affected people gathered at both Katse and Mohale
Dams, while about 300 more marched at Muela Dam.
(Transformation Resource Centre (Lesotho) PR 26/11/01)
Lesotho, South Africa, WB clash over corruption The
Lesotho and South African govt.s are headed for a clash
with the World Bank after the Bank reneged on a promise
to fund the legal costs in a crucial corruption case. The
WB undertook in Nov. 1999 to help pay Lesotho's legal
costs in a court case in which major Western
multinationals (including from Canada and Germany)
stand accused of bribing officials involved in the Lesotho
Project. The project's former chief executive has been on
trial since June 2001 for allegedly accepting 12 M rand in
bribes. The trial in the internationally watched cases is due
to start in 2002. (BBC 10/12/01)
World’s lakes threatened Holding nearly 90 % of all
surface liquid fresh water, the world's five million lakes
and reservoirs are being overdrawn by irrigation projects
and contaminated by toxic chemicals and nutrients from
industry, farms and sewage. Even though the amount of
fresh water currently stored in lakes worldwide is about 35
times the amount found in rivers, govts. and
conservationists generally have ignored lakes, according to
Hideaki Oda, secretary general of the Third World Water
Forum, scheduled for 2003 in Japan. "Natural lakes,
especially large ones, are of great economic, ecological,
and cultural importance, with at least one B people
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
depending on them for their livelihood and for drinking
water," he said. In China, 543 large and medium-sized
lakes disappeared between 1850 and 1980 when water was
diverted for irrigation. Since 1900, annual water
withdrawals world-wide have increased to 3,800 cubic
kilometres, from 578 cubic kilometres. The global fresh
water consumption rose at more than twice the rate of
population growth. Most of the world's lakes suffer from
eutrophication, i.e. an over-abundance of nutrients from
agriculture or industry causing a rapid growth of aquatic
plants that choke off other organisms. 54 % of the lakes
in Asia suffer from this, compared to 53 % in Europe, 28
% in N America and 41 % in S America. (The Dawn-Pak
14/11/01)
NGO Statement at the Freshwater Conference We
welcome the initiative to invite NGOs and other Major
Groups to participate in Multi-Stakeholder Dialogues and
in Working Group and Plenary discussions. This
procedure should be adopted in discussions on water
management on all levels. We also welcome the statement
by Minister Wieczorek-Zeul that the German government
is prepared to support a multi-stakeholder review of
private sector participation in the water sector. In
particular we welcome the inclusion of a statement in the
Recommendations that private sector participation in
water supply should not be imposed on developing
countries as conditionality for funding. Governments
should ensure that everyone has a lifeline supply of 50
litres per day of safe water. We note that relevant UN
Conventions, particularly regarding the Rights of the
Child, refers to the right (of the child) to water. This
principle should be applied throughout the UN system
and to all humans. The character of water as a vital
resource requires that it be managed as a common good
carrying social, cultural, spiritual, as well as economic
values. The problem of over consumption should be
adequately addressed, and such non-sustainable patterns
of water use strongly discouraged, by bodies discussing or
making decisions on water management. Governments
and international agencies should adopt and implement
the recommendations of the World Commission on
Dams. With all its associated values, water resources and
water service delivery should be kept out of international
agreements on trade. (www.irn.org 07/12/01)
WATER OPTIONS
Productive use of wetlands Wetlands in urban areas
provide the ideal ground for integration of low-cost
sanitation technology with sewage-fed aquaculture.
According to a paper on wetlands presented at the 17th
National Convention of Environmental Engineers held at
Thiruvanthapuram wetlands that are essential life support
systems could play a vital role in cleaning the environment
SANDRP
12
and controlling water cycles. Dismissing the general
perception of wetlands as wastelands, it said they would
help to preserve the ecological balance of the
environment by their capacity to generate oxygen,
consume pollutants, preserve the topsoil and recharge
groundwater besides serving as drainage accommodation
basin. (The Hindu 29/11/01)
More Water for whom? In developing nations, up to 95 %
of sewage and 70 % of the industrial waste is dumped in
to surface water, adding to the burden of disease. In
India, 60 % of the total deaths are caused by water-borne
disease. The mid-term review of the 9th plan says, “During
April-May 2000, when the Maharashtra govt. was
supplying drinking water through tankers in about 3,000
villages, many rich farmers were irrigating sugarcane crop
with groundwater.” As per World Population Report
2001, total annual cost of environmental degradation in
India is Rs 1800 B, including Rs 360 B for soil erosion.
(THE TIMES OF INDIA-D 08/11/01)
Rs 2 B fund for watershed project A Rs 2 B fund has been
created for watershed development from which State
Govt. can avails loans, said the Union Minister for
Agriculture. The NABARD has contributed Rs 1 B and
the Agriculture Ministry has given an equal amount. (THE
TRIBUNE 22/11/01, 06/12/01)
Centre to rope in Rajendra Singh Magsaysay winner
Rajendra Singh and Tarun Bharat Sangh provided water
in 600 villages through 4,500 structures with just Rs 44.5
M. Rural Development Minister, who wants to get water
for all by 2010 with his sector reforms programme (SRP)
at Rs 10 B, has decided to set up a national advisory panel
to guide his ministry. Singh expressed skepticism about
minister’s SRP. (INDIAN EXPRESS 01/11/01)
CGWA directs for rainwater harvesting To arrest the
declining ground water levels and deterioration of ground
water quality, the CGWA by a Public Notice has directed
all Group Housing Societies in the NCT Delhi (except
those societies located in Yamuna flood plain area or
where water levels are within 8 mtrs below ground water
level) that are exploiting ground water, to adopt Roof Top
Rain Water Harvesting System for ground water recharge
in their premises. (PIB 29/11/01)
RWH Calculator? The Tamil Nadu Water Supply and
Drainage Board has taken to the Internet to break the
barriers of reluctance to rainwater harvesting, with a
website exclusively on RWH (www.rainwaterharvest.org,
www.about_rainwaterharvesting.com,
www.aboutrainwater.com). The website has a rainwater
harvesting calculator that is a simple device to help a
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
prospective investor decide if RWH would be worth the
money. (THE HINDU 27/11/01)
WATER SUPPLY
Regulatory Commission in AP The AP Govt. has decided
to set up an independent water supply regulatory
commission on the lines of Electricity Regulatory
Commission. The proposed commission will have powers
to review existing water charges and decide charges to be
paid in each urban body on cost-effective basis and also
maintain water supply quality. (BUSINESS LINE-D
09/11/01)
Lokayukta indicts Delhi Jal Board for corruption The
Lokayukta has indicated DJB for irregularities in awarding
contracts for laying sewer lines in Delhi. In his final factfinding report he has shown CM’s sister and her officer
on special duty as being involved in the corruption case.
(THE TIMES OF INDIA-D 11/12/01)
Water desalination in nuclear power station? The
Kalpakkam nuclear power complex is expected to have
the world’s largest sea water hybrid desalination plant to
be coupled to a nuclear power station. It is to produce 6.3
M litres (ML) of potable water a day using a thermal
method (4.5 ML) and a reverse osmosis system (1.8 ML).
(FRONTLINE 21/12/01)
WB credit for Karnataka The World Bank has announced
$ 151.6 M credit for taking up the 2nd Karnataka Rural
Water Supply and Sanitation Project, to be implemented
in 11 districts of N Karnataka. (THE HINDU-D 20/12/01)
Asbestos pipes causing cancer in W Bengal? Scores of
people in the districts of Midnapore and South 24
Pargana in W Bengal have contracted cancer due to the
carcinogenic effects of asbestos pipes that supply drinking
water to most villages, voluntary organisations say. In
1996, the WHO recommended that asbestos be replaced
by safer substitutes. WHO says exposure to chrysotile
asbestos poses increased risks for asbestosis, lung cancer
and mesothelioma. But the West Bengal govt. claims the
pipes it uses are quality controlled and asbestos causes
cancer only when inhaled. (IANS 22/12/01)
Hudco’s loan for Gujarat water projects The Housing and
Urban Development Corp. has sanctioned Rs 7.22 B for
five major projects on water supply and drainage in
quake-affected Gujarat. The bulk water transmission
pipeline projects in Kutch, Rajkot and Jamnagar districts
is estimated to cost Rs 9.53 B of which Hudco will
provide Rs 7.22 B. (THE TIMES OF INDIA-A 02/12/01)
WTO & WATER
SANDRP
13
The European Union, including the UK, is pushing for
further liberalisation of trade in services including water
services through the General Agreement on Trade in
Services. The plan is being promoted despite the fact that
water privatisation so far has often been bad news for
vulnerable communities and the environment. In
developing countries, water prices have often increased
and level of service decreased when multinational
companies have been given concessions.
The WB and the IMF are aggressively promoting water
privatisation in developing countries, opening the door
for huge transnational water corporations to profit from
water delivery and wastewater treatment. 'Full costrecovery' - the principle promoted by the IMF and World
Bank that people should pay the full cost of water, or go
without - would effectively be enshrined in law by GATS.
Sustainable water distribution practices could also be
undermined as charges could be introduced, for example
for the collection of rainwater. Under this new WTO
provision, a domestic rule that protects water as a public
service and a human right could be considered a "nontariff barrier" to trade and eliminated, as could any rule
that attempts to limit privatisation. Water is clearly a
"good" in GATT. Article 11 already rules out any
quantitative restrictions on the export of a good, but
allows tariff measures, such as taxes or dual price systems.
But the new text proposes to do away with such export
controls, making it illegal to restrict the export of bulk
water for commercial purposes. GATS could also
undermine environmental protection as it contains only a
very narrow environmental exception. Governments
could find that laws and measures they have introduced
for environmental protection and water conservation
could be classified as barriers to trade and be overruled by
the WTO. (“GATS 2000" 02/11/01, right-to-water@iatp.org
08/11/01)
WATER POLLUTION
CAG warns on water pollution The CAG has stated, in its
final report on water pollution, that despite laws and
schemes, rivers in the country are getting dirtier, polluting
industries are functioning without much check, sewage is
finding its way in to water bodies and the drinking water
supplied to towns does not meet set parameters posing a
health risk to residents. In Haryana, 611 of 2,87 polluting
units identified were functioning without the mandatory
permission. In HP only one of 58 municipal committees
had permission from the state pollution control board.
None of 122 government hospitals or public health
centres had even bothered to apply for permission. In
Karnataka, out of 6,891 industries, 2,169 were functioning
without consent. The Maharashtra, Orissa, Rajasthan,
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
Gujarat were also guilty of neglect. (THE TIMES OF
INDIA-D 14/12/01)
Sutlej turns toxic In a major disaster, thousands of fish
and now even birds have perished in and around the
Sutlej near Nangal, allegedly due to the release of toxic
waste in the river. The birds feeding on the dead fish
floating on the river have started perishing. The two
chemical plants in the nearby area belong to NFL and
Punjab Alkalis and Chemicals. The Fish Farmers
Association, Punjab has demanded that criminal cases
should be registered against those responsible for the
death of fish in the Sutlej.
*
HC bans Fishing in Sutlej On the direction of the
Punjab and Haryana High Court, the fishing and the sale
of fish from the Sutlej River has been banned till further
order. According to the interim report submitted by the
Fisheries department, a team of fisheries experts has
estimated that about 30 quintals of big fish and seed fish
of the small fish have perished.
*
Fish death due to lower amt. of oxygen A lower
amount of dissolved oxygen, allegedly caused due to the
release of some industrial toxic affluent, caused the mass
mortality of fish in the Sutlej. The normal value of
dissolved oxygen in the water should be 8-10 mg per litre.
(THE TRIBUNE 24/11/01, 28/11/01, 30/11/01, 7/12/01)
Yamuna Pollution Water in the river Yamuna contains
coliform beyond the permissible level of 5,000 per ml,
Parliament was informed. The dissolved oxygen level has
been ‘Nil’ (min. desirable limit is four milligram per litre)
at all the monitoring locations, the minister of
Environment and forest said. (THE TRIBUNE 24/11/01)
FISHERIES
Inland Fish production can go up 10 times? The total area
of India’s irrigation bodies, including man-made lakes and
canal network is about 7 M Ha, which produces about 2.5
MT of fish annually. If certain strategies are adopted, the
country’s fish production could be raised to 30 MT by
properly utilising nearly 300 large irrigation projects,
around 950 medium projects and over 40,000 minor
irrigation projects. (THE ECONOMIC TIMES-D 03/11/01)
Fishing rights of Adivasis The MP government has
promised that the interests of Adivasis displaced by Tawa
and Bargi reservoirs would be fully protected while
renewing the fishing rights in the reservoir. The societies
formed by the Adivasis displaced by the Tawa reservoir
were given fishing rights for five years and the deadline
for this arrangement is soon to expire. About 450 families
are earning Rs 1000 per month from the Tawa reservoir
through fishing activity. (THE HINDU-D 13/12/01)
SANDRP
14
Two states clash for fishing rights The Uttar Pradesh and
Uttarnchal have been finalising the fishing contract for
the “same waters” of the Sharda Sagar Dam. The Sharda
Sagar, fed by the Sharda river, is a gigantic man-made lake
created along a 22.2 km long earthen dam constructed in
the 1950s. Of this, 17-km fall in the Pilibhit district of UP
and 5.2-km lies in the Udham Singh Nagar district of
Uttaranchal. After the intervention of the Supreme Court,
the UP fisheries department auctioned the fishing
contract of the Sharda Sagar Dam for Rs 5.1 M. The
Uttaranchal govt. has now fixed date to auction the
fishing contract of the same dam. (THE TIMES OF
INDIA-D 12/12/01)
AGRICULTURE
Pest-related crop damage One third of the global food
production potential is lost due to pest infestation and
other damages. The crop losses in India range from 10 to
30 % depending on the crop, region and severity of pest
infestation, said Union Minister of state for agriculture. In
monetary terms, the loss is estimated at more than Rs 500
B per year. (THE ECONOMIC TIMES-D 21/11/01)
Rs 75.03 B plan to boost farm sector The working group
for agricultural infrastructure and marketing for the 10th
plan (2002-07) has proposed outlay of Rs. 75.03 B in a bid
to help farm sector realise its full potential. An expert
group conceded that with the increased production of
foodgrains likely at 230 MT by the end of 10th plan,
increased capacity of warehouse/godowns ought to be
created. The concept of “Rural Grain Bank” needs to be
introduced as the total additional storage capacity required
is 7.78 MT valued at about Rs 12.59 B, which entails
allocation of Rs 3.15 B as subsidy. It is proposed to
involve private sector for creating food storage facilities
on BOO basis. (BUSINESS LINE-D 07/11/01)
Slowdown in agri-exports During April-September 2001,
agriculture exports declined by 2 % as against the increase
of 21.5 % during the corresponding period last fiscal.
(BUSINESS LINE-D 17/11/01)
Board for organic farming mooted A task force on organic
farming has recommended a national-level permanent
board to oversee the promotion of Organic farming in the
country and coordinate with various Union Ministers,
state agencies, research institutes and universities. Organic
farming is expected to get a token amount of Rs 1 B
during the 10th Plan. (THE TIMES OF INDIA-D 01/12/01)
Farmers’ suicide in Karnataka Over 80 distressed farmers
have ended their lives this year in Karnataka. Untimely or
inadequate rains leading to crop failure and slump in
prices of agriculture commodities due to overproduction
force them to commit suicide. (THE HINDU-D 15/12/01)
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
15
FOOD SECURITY
Fertiliser scam in Bihar A scam has been detected in
High price and low purchasing power The annual
Bihar involving over Rs 10 B in which 23 companies got
government subsidy without even selling the nutrients.
The State Agriculture Ministry agreed to order a CBI
probe into the matter. (THE HINDU-D 27/12/01)
production of 200-210 MT of foodgrains production
translates into an annual availability of 200-210 kg per
capita per year. From mid 1960s to ‘99, per capita
availability of coarse cereals has plummeted from 42.5 kg
to 25.5 kg, while that of pulses has dropped sharply from
23.2 kg to 13.3 kg per year, which is just 36 grams per day!
Each Indian’s consumption of cereals has declined from
173 to 154 kg per year in rural areas, and from 134 to 124
kg per year in urban areas. On the other hand the cereals
price have jumped 30 % in real terms in the past decade.
The poorer sections are going to be squeezed out of the
market being forced to consume less then before. (THE
Akali Dal to move SC on WTO The Shiromani Adali Dal
of Punjab has reiterated to challenge in the Supreme
Court the signing of the WTO agreement by the center
without consulting the states. (THE TRIBUNE 17/11/01)
FOODGRAINS PROCUREMENT
Farmers forced to give ‘post-sale bribe’ The farmers of the
Doaba region in Punjab are facing forcible deduction of
“post-sale bribe” to the tune of Rs 250 per tonne from
their dues by commission agents. The farmers who
oppose the deduction are threatened with non-purchase
of their crop next year. (THE TRIBUNE 08/11/01)
ECONOMIC TIMES-D 09/11/01)
No food security in the country The Union Minister for
Agriculture, Mr. Ajit Singh said that despite achieving selfsufficiency in foodgrain production, India has failed to
provide food security, resulting in millions of people
going hungry everyday. (THE TRIBUNE 29/11/01)
Fund diversion in Punjab The Punjab govt. has diverted
funds released by the RBI for the procurement operations
in Oct. and Nov. for payment of staff salaries and
allowances and repayment of the loan interest. The state
has exhausted the entire cash-credit limit extended by
RBI, and asked for more funds from the bank to clear the
farmers’ dues amounting to Rs 8 B and Rs 1.5 B owed to
paddy millers. (THE TRIBUNE Edit 28/11/01)
Supply of foodgrains to drought-affected areas Central
Govt. has been allocating foodgrains (rice and wheat) to
the drought-affected States free of cost for food for work
programme. Foodgrains are also being allotted to the
States for calamity relief such as drought, flood etc. at
rates applicable to BPL families i.e. Rs. 5650 per tonne for
rice and Rs. 4150 per tonne for wheat for distribution to
the affected families. As compared to this, the export
price of rice fixed by the Government is Rs. 5650/- per
tonne for raw rice and Rs. 6000/- per tonne for parboiled
rice. The current export price of wheat is Rs. 4200 per
tonne and that of ‘lustre lost’ wheat of Punjab and
Haryana Rs. 4150 per tonne. (PIB 29/11/01)
Greater decentralisation of PDS mooted The working
group on PDS and food security for the 10th plan has
recommended greater decentralisation of PDS and said
that the states should be given the responsibility of fixing
the quantum of total food subsidy to be provided, fixing
the price and the amount of foodgrains to be distributed
per person. The Centre would continue to provide food
subsidy. (THE INDIAN EXPRESS-D 26/12/01)
ABOUT THE UPDATE
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The update has been produced mainly from
information from media sources, both from internet
and printed editions and also from official websites
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SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
2 B lack food security According to the UNPF’s State of
World Population Report (Footprints and Milestones:
Population and Environment Change), by 2025, 3 B people will
live in 48 water-stressed countries. About 800 M people in
developing countries were chronically malnourished and 2
B people lack food security. The report suggests that
there is a direct relationship between poverty, high fertility
and environment degradation. (THE TRIBUNE 08/11/01)
FLOODS, LANDSLIDES, DISASTERS
Kerala landslide In a massive landslide 36 persons has
died at Amboori in Neyyatinkara taluk. The calamity
occurred when a portion of a 700 metre-high hillside
strewn with boulders came tumbling down in a heavy
rain. It swept away four houses that stood in its nearly
one km downhill path. (THE HINDU-D 11/11/01)
National Disaster Mitigation Summit The Confederation
of Indian Industries organized a two-day summit in Delhi
on Nov. 23-24 on Disaster Mitigation. It was attended by
a select group of people and addressed mostly by the
Chief Executive Officers from the National organizations,
among
them:
HUDCO,
India
Meteorological
Department, General Insurance Corporation, Central
Water Commission, Indian Institute of Public
Administration,
National
Centre
for
Disaster
Management, National Safety Council, Central Pollution
Control Board. Among the information that was shared
by all was that the Government of India has raised a
Working group on Disaster Management under the
Indian Institute of Public Administration. Senior Civil
Servant (presently, Mr. Anil Sinha) who also holds the
position of Head, National Centre for Disaster
Management, heads it. CII also supports a Disaster
Management Committee. The present Chairman of the
Committee is V. Suresh, Chairman and Managing
Director, HUDCO. Dam break was not discussed at the
summit. (Abridged version of a SPECIAL REPORT SENT
FOR THE SANDRP UPDATE BY DILIP FAUZDAR)
Damage in AP The 11-member central team that visited
four southern districts in Andhra Pradesh to assess the
damage caused by floods in Oct., has termed the
devastation 'unprecedented'. The state government put
the total loss due to floods at Rs 11.85 B. While 167
persons died, 22 persons were reported missing in the
wake of the floods. 26,910 houses were fully damaged,
and 104,753 houses suffered partial damage. In all,
61,681 people were evacuated to safer places during the
floods in Nellore, Chittoor, Cuddapah and Kurnool
districts. Minor irrigation tanks and 602 rural water
supply sources were damaged. (http://www.rediff.com/
08/11/01)
SANDRP
16
Dam bursts flooding village in east Guyana A breech in a
huge dam in Guyana's East Coast has resulted in the
flooding of a village of some 8000 people. (BBC 03/11/01)
POWER FINANCE
Govt. plans $1 B power fund The govt. proposes to set up
the India Power Fund to mobilise $1 B for meeting the
investment requirements in the power sector. PFC is
expected to contribute Rs 500 M towards the seed capital.
PFC seeks to rope in FIs like IDBI, GIC, LIC, ADB, and
the WB. A special purpose vehicle would be created
which will pick up 49 % equity stake in a power project
being planned by the concerned state. The state govt. will
hold the remaining 51 % stake, which will not seek
management control in spite of holding majority shares.
The fund is also expected to have domestic debt fund and
foreign debt fund. (THE ECONOMIC TIMES 02/11/01,
THE HINDUSTAN TIMES-D 21/11/01)
WB loan for Power Grid PGCIL has received $450 M loan
assistance from the WB to enable it to move a step
towards establishment of a National Grid in the country.
(THE HINDUSTAN TIMES-D 27/11/01)
PFC to refinance IFCI guarantees PFC has agreed to
takeover guarantees of over Rs 5 B extended by IFCI Ito
foreign lenders in three power projects in operation. Two
of the projects involved are 360 MW Lanco Kondapalli in
AP and 200 MW GMR Vasavi power project in Chennai.
(THE ECONOMIC TIMES-D 02/11/01)
Russian credit for Kudankulam project Russia will extend
soft credit worth Rs 64.16 B to India to part-finance the
Kudankulam 2000 MW nuclear power project in Tamil
Nadu. The project that has been hanging fire for over a
decade is to be implemented with an overall investment
of Rs 131.71 B. (THE HINDUSTAN TIMES-D 04/11/01)
POWER ‘REFORMS’
Funds for Haryana power centres The ministry of power
has sanctioned Rs 3 B to the Haryana government for
opening four centres for power supply distribution. The
Karnal, Sonepat, Hissar and Faridabad districts in the
state have been chosen as “model power centres”, among
60 other districts all over the country. Money sanctioned
for these model power stations will be utilised for
upgrading the transmission mechanism and thus reducing
the losses incurred in T&D. (THE TRIBUNE 20/11/01)
West Bengal proposes law to check power theft The govt.
is planning to introduce new legislation to check power
theft. For this it has decided to follow similar legislations
enacted by Karnataka, UP and Delhi. WBSEB has
committed itself to reducing its T&D loss from around 50
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
per cent now to 39 per cent by 2005. (BUSINESS LINE-D
30/11/01)
Spectrum Shareholders to move CLB, Cong to CBI On
issues such as non-payment of dividends, corruption, etc,
the shareholders of the Spectrum Power have decided to
approach the Company Law Board. AP Congress has
demanded CBI investigation into the irregularities
committed by IPPs like Spectrum and GVK, APTransco
and central and Financial Agencies in executing power
projects in AP. (THE ECONOMIC TIMES 03/11/101,
09/11/01)
Delhi for private power distribution AES, BSES, Reliance,
CESCON, China Light and Power International & Tata
Power have been short listed as the strategic partners of
DVB for privatisation of power distribution. DVB is
being split into one generation, one transmission and
three distribution companies. (THE HINDU-D 24/11/01)
MP power reforms face opposition MP has embarked on a
Rs 16.40 B power reforms plan including strengthening of
the T&D system. Organisations like Jan Sangharsh
Morcha, the AITUC, the MP Vidyut Karamchari Janta
Union and Jailok Study Circle have opposed the
privatisation and trifurcation of MPEB being thrust at the
instance of the WB and the ADB. They have demanded
that the govt. withdraw from disastrous Projects like
Maheshwar. (BUSINESS LINE-D 17/12/01, NBA PR
25/11/01)
NTPC notice to UP, MP, Orissa UP, MP and Orissa
which together owe NTPC about Rs 60 B in dues, have
been served notice by NTPC to cut power supply if they
failed to clear their outstanding and did not agree to sign a
tripartite agreement to guard against future dues. NTPC’s
total outstanding from the SEBs is Rs 208.77 B as on
30/11/01. (BUSINESS LINE-D 03/12/01)
17
Proposal to set up 400 power circle profit centres The
Power Ministry has drawn up a plan under which it
proposes to set up 400 power circle ‘profit centres’ which
will be given the task of managing the T&D activities at
the grassroots level. Each power circle will be allocated
funds of Rs 800 M, of which the WB under the EPDP
programme will provide 50 %, and rest is proposed to be
put in by FIs. (THE ECONOMIC TIMES-D 03/12.01)
Power Grid notice to Delhi, Bihar, UP The Power Grid
Corporation has warned Delhi, UP and Bihar, which
together have outstandings of Rs. 8.55 B, to pay up their
dues by the month end or face a cut in supplies. (THE
HINDUSTAN TIMES-D 07/12/01)
T&D loss reduction figures ‘incorrect’ Figures provided
by the SEBs about reduction in T&D losses are
“doctored and cooked up” as full metering is yet to be
achieved, according to Mr. Hanumantha Rao, former
member of the TNERC. According to projected figures,
the T&D losses came down to 23 % in Orissa, to 14 % in
TN and 18 % in AP. (THE HINDU-D 12/12/01)
Gujarat to allow third party sale of power by IPPs The
Gujarat Govt. has decided to allow the third party sale of
electricity for IPPs. The dues to the IPPs from the
Gujarat SEB now stands at Rs 8.80 B. The govt. is
expected to face a similar demand from the Captive
Power Producers. The CPPs have an installed capacity of
over 2 500 MW as against 1 500 MW by the IPPs.
(BUSINESS LINE-D 14/12/01)
NTPC rules out gas-based plant in Bengal in 10th plan The
NTPC has ruled out the possibility of setting up any gasbased power plant in W Bengal during the 10th plan as its
own 1 600 MW capacity thermal power plant at Farakka is
running at 40 % plant load factor due to poor demand.
(BUSINESS LINE-D 17/12/01)
WE AWAIT YOUR RESPONSES
UPDATE is so well edited and well made that it covers a large area in an unimaginably small space.
Joya Mitra, Asansol, West Bengal
I am glad to go through the UPDATE on Dams, options and related issues of November 2001 issue by SANDRP. Very
relevant issues of Socio Techno Economic aspects are highlighted.
Prof. B S Thandaveswara, IIT Madras
UPDATE seems an excellent and comprehensive compendium of sources on water-related issues like dams, and is a
good way to stay in touch with issues for people who perhaps don't have time to read each new development on
exhaustively but want to know whats going on. I like that further links and sources for information are provided, that
there is a good balance between scientific and human-angle information as pertains to issues like dams, that it explores
alternatives and action, and the scope is larger than one country or project.
Ajay Gandhi, IDRC, Delhi
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
Ethanol with petrol The Union Minister for Petroleum
announced that sale of petrol blended with ethanol at the
rate of 5 % will be implemented in two phases. The Govt.
has also decided to amend the Sugar Development Act,
1982, so that production of ethanol and cogeneration of
power from Bagasse would receive financial assistance
from Sugar Development Fund. The sugar industry has
welcomed the move and demanded that such blending
should be mandatory. (BUSINESS LINE-D 11/12/01)
Tata Power bags first private transmission project Tata
Power has picked up 51 % stake in the first transmission
project in the country that was thrown open for private
participation by the govt. The 1500-km, 400 KV Tala
Transmission Project, which will cross three regions –
North East, East and North – is expected to cost around
Rs 12 B and will have capacity to carry 3 000 MW. The
lines would primarily evacuate power from 1020 MW Tala
Project in Bhutan, expected to be operational by 2004-05
and will also carry surplus electricity from NE states to
the power deficit northern belt. The lines could also be
used to carry electricity from possible Nepal HEPs. (THE
ECONOMIC TIMES-D 04/12/01)
Scan America proposes to set up three projects in Gujarat
Scan America Energy has proposed to set up three power
projects of a total capacity of around 1 150 MW in
Gujarat. To be set up in three phases on BOOT basis, the
power plants would be located in the region between Gulf
of Kutch and Gulf of Cambay. The first phase of the plan
includes a fast track 200-400 MW combined cycle gas
turbine barge mounted power plant. The second phase
would be of 225 MW vessel mounted power plant while
the third phase would consist of 525 MW CCGT BMPP.
(THE ECONOMIC TIMES-D 21/12/01)
18
92 paise loss on every unit sold by SEBs SEBs are losing
92 paise per unit on electricity sold, resulting total loss
being Rs 260 B per year. Due to the T&D losses, only 55
% (Rs. 620 B) of electricity is billed and cost recoveries
are only 41 % (Rs. 460 B). The average production cost of
a unit of electricity has reached up to Rs 3.04, while
income is only Rs 2.12. The Union Minister of state for
Power also informed that the average rate of power
supplied by the NTPC during 2000-2001 was Rs 1.57 per
unit. (PIB 12/12/01, RASHTRIYA SAHARA 09/11/01)
T&D losses in India The overall T&D loss in India is
worked out to be 25% and the actual figure could be even
higher. Ironically, the States that underwent restructuring
in their Electricity Boards show the figure of 35-50% of
loss. The figure was hovering around 15% that was at par
with developed countries till 1966. Equal amount of
investment has to be devoted for power generation on the
one hand and transmission, distribution and rural
electrification on the other. But the reality is that for every
rupee invested on generation, only 3 to 7 paise is
earmarked for transmission, distribution and rural
electrification. India has the capability to bring the losses
below 15%, but commercial losses due to theft and
pilferage accounts for the higher figure. (PIB 10/11/01)
*
Govt. Target The govt. has pegged an ambitious
target to reduce T&D losses across the state below 15 %
from current levels of around 50 %. According to CEA
estimates, reduction of the technical T&D losses would
mean augmentation of capacity by almost 10,000-12,000
MW. Another statistics put the commutative commercial
losses of all SEB’s at staggering Rs 260.13 B in 2001-02.
The government is also claimed to have initiated demand
side management to save upto 30-40 % of power. (THE
ECONOMIC TIMES-D 21/11/01)
POWER OPTIONS
PUBLICATIONS AVAILABLE WITH SANDRP
1. 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/-.
2. 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/-.
3. Large Dams and Their Alternatives: South Asia Consultation SANDRP Dossier on WCD South Asia Public Hearing, 1999,
pp 166, Rs. 100/-.
4. Report of the Daud Committee, Govt. of Maharashtra, SANDRP a co-publisher, pp 54, Rs. 30/-.
5. Dam Vs Drinking Water: Exploring the Narmada Judgement, by L C Jain, Parisar Publication, 2001, pp 131, Price Rs. 75/-.
6. 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/-.
7. 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, 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.
SANDRP
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
Power from garbage in Delhi? The Lt. Governor of Delhi
has approved setting up of a garbage treatment plant,
which will produce 25 MW of power, to be built at a cost
of over Rs 2 B. The first such plant of Delhi had
completely failed and not generated any power, in stead
caused air pollution. A number of environmental groups
have said that the plant will be economically unviable and
environmentally unacceptable. (HINDUSTAN TIMES
27/11/01, TIMES OF INDIA, THE HINDU 1/12/01)
Rural electrification Plan The Govt. is planning total rural
electrification in the country by 2012 and the estimated
cost for this has been worked out to around Rs 100 B,
comprising Rs 46 B in the first phase for 62 000 villages
to be covered by 2007 and Rs 54 B in the second phase
which will connect 18 000 remote villages by 2012. (THE
HINDU-D 08/12/01)
Gujarat yet to tap wind energy potential Gujarat has
virtually turned a blind eye to the potential of generating
as much as 5 000 MW of power by wind. With the state's
policy on tapping wind energy left untouched since 1993,
Gujarat has been generating a meager 166 MW as
compared to 800 MW generated by TN that tops the list
among the states in generation of wind energy. (THE
TIMES OF INDIA-A 12/01)
Germany commits fresh aid The German govt. has
committed a fresh aid of about Rs 14 B (DM 664 M) this
year. The fund would be utilised for different projects
including for the rehabilitation of HEPs, private sector
investments in infrastructure and improving the efficiency
of TPSs. (BUSINESS LINE-D 06/12/01)
ENRON SAGA: Proving many critics of the Dabhol
projects right, the Enron Corporation has filed for what is
history’s biggest case of bankruptcy in US courts on Dec.
2, 2001. With that the fate of Dabhol Power plant has
gone further into limbo.
FIs open to fund acquisition of foreign equity in DPC FIs
are open to the idea of funding the acquisition of the 85%
foreign equity in DPC. BSES and Tata Power have
expressed interest to purchase 85% shareholding of DPC
held by Enron and its associates subject to certain
conditions. (THE ECONOMIC TIMES-D 13/11/01)
FIs ask govt. to finalise incentive package for DPC FIs led
by IDBI have urged the Centre to finalise the package of
incentive along with allotment of a distribution area for
about 1,000 MW to the Enron-promoted DPC. IDBI has
identified these as two major prerequisites for smooth
induction of a new sponsor in place of Enron in the 2,184
MW project. (THE INDIAN EXPRESS-D 27/12/01)
SANDRP
19
HUMAN DEVELOPMENT ISSUES
Plight of Adivasis in Orissa Data collected through a
survey in Orissa during April-May 2000 by the CSDS,
Delhi highlight that 23 % of adivasis are “non-workers”
implying that they did not get any work. The survey
confirms the govt. figure that nearly 48 % of people in
Orissa live below the poverty line but for Adivasis this
figure stands at nearly 72 %. Only 9 % of Adivasis have
access to electricity. (THE HINDU-D 06/11/01)
Mother gives away her baby due to poverty Due to
poverty, a newly born male child was handed over to a
couple looking ‘for a son’ in Bolangir district (Orissa)
hospital. (THE HINDUSTAN TIMES-D 21/11/01)
Police firing on adivasis in Orissa Police firing killed two
adivasis and critically injured eleven on the 11th Nov. 2001
at a rally of around 8000 women in Nabrangpur district.
The rally was organised to protest against the death and
arrest of tribals in Raigarh around 2 weeks ago, i.e. on 30th
Oct. 2001, when armed police had entered Rengabhati
village in the Raigarh police station of Nabarangpur
district and opened fire at a gathering of 400 adivasis. In
the earlier firing, two were killed on the spot while the
third succumbed to injury in a govt. hospital. Another 50
sustained serious bullet injuries. (E-mail by ncas@vsnl.com)
Child mortality in Maharashtra In a startling revelation, a
combined study by a group drawn from 13 NGOs in
Maharashtra has revealed that about 80 % of child deaths
go unreported on Health Department records every year.
According to the study, of the about 200 000 deaths
known to have occurred in the last two years, only up to
40 000 deaths were reported. Highest child mortality rate
of 126.9 was found to be in the adivasi area of Amravati
district. (INDIAN EXPRESS-D 28/11/01)
Orissa Govt. fail to utilise plan allocations The rural
development department of Orissa had spent only 18.46
% of the total allocation of Rs 1.86 B for 2001-02 till
October end. The water resource department was able to
spend 31.59 % of the annual plan allocation of Rs 6.215
B. Of the annual allocation of Rs 8.856 B, the energy
department was able to spend only Rs 1.72 B. (THE
HINDUSTAN TIMES-D 13/12/01)
Central Minister advocates private sector for rural
development The Union Minister for Rural Development
said the task of rural development in the country can not
be carried out without participation from the private
sector. (BUSINESS LINE-D 16/12/01)
MDBs The ADB is currently in the process of drafting its
first Environmental Policy. (www.bicusa.com)
JANUARY 2002
UPDATE ON DAMS, OPTIONS AND RELATED ISSUES
20
BIG QUAKES MAY HIT DELHI Parts of Delhi and
S Meinzen-Dick and Mark W Rosegrant This 29 page
many of the country's principal cities could be hit by highintensity earthquakes in future, destroying life and
property, a new Indo-US study has said. A study on the
Black Mango Fault, a seismic fault that passes through
Haryana, has shown that the Indo-Gangetic plain may be
hit by big quakes in future, as reported in Science.
report is part of IFPRI’s exercise towards 2020 vision for
Food, Agriculture and Environment. The sentence in 2
page overview “However, water harvesting can be
expensive per unit of water, and is unlikely to be able to
meet rapidly growing water demands” possibly shows a
bias of the report. While being critical of large dams and
inter-basin transfer of water, the overview does not even
mention the word equity.
(http://www.rediff.com 30/11/01)
NEW BOOKS, REPORTS Overcoming Water Scarcity
and Quality constrains, IFPRI, Oct. 2001, Edited by Ruth
___________________________________________________________________________________________________________________________________
Hydropower Schemes of Uttaranchal
Completed Projects
Project
Maneri Bhali St-I
Tanakpur
Khatima
Patheri
Dhakrani Y St-I
Dhalipur Y St-I
Chibro Y St-II
Kulhal Y St-IV
Ramganga
Chilla
Khodri Y St-II
Khara
Total
Capacity (MW)
90
120 (40x3)
41.4 (13.8x3)
20.4 (6.8x3)
33.75 (11.25x3)
51 (17x3)
240 (60x4)
30 (10x3)
198 (66x3)
144 (36x4)
120 (30x4)
72 (24x3)
1160.55
Agency
UHPC
NHPC
State Sector
State Sector
State Sector
State Sector
State Sector
State Sector
State Sector
State Sector
State Sector
State Sector
River
Bhagirathi
Sharda
Sharda
Ganga Canal
Yamuna
Yamuna
Yamuna
Yamuna
Ramganga
Yamuna
Completion Year
1984
1992
1956
1955
1965,66,70
1965,66,70
1975
1975
1975,76,77
1980,81
1984
1992
Info. Sources
TOI-D 23/12/01
NHPC Brochure
CPGP (Page 12)
CPGP (Page 12)
CPGP (Page 13)
CPGP (Page 13)
CPGP (Page 13)
CPGP (Page 13)
CPGP (Page 13)
CPGP (Page 13)
CPGP (Page 13)
CPGP (Page 13)
Projects Under Construction
Project
Tehri Stage-I
Tehri Pump Storage
Koteshwar
Dhauli Ganga St-I
Maneri Bhali St-II
Total
Capacity (MW)
1000
1000
400
280
304
2984
Agency
THDC
THDC
THDC
NHPC
UHPC
River
Bhagirathi
Bhagirathi
Bhagirathi
-Bhagirathi
Status
Completion by Aug. 03
DPR being updated
Work started
Compln. By March 05
Work started (2003-05)
Info. Sources
CEA Annexure-IV
TOI-D 23/12/01
CEA Annexure-IV
NHPC Brochure
TOI-D 23/12/01
Projects Under Planning
New Projects
Capacity-MW Agency
River
Status
Bharon Ghati-I
324
UHPC*
Bhagirathi New Project
Bharon Ghati- II
240
UHPC*
Bhagirathi New Project
Loharinagpala
620
THDC
Bhagirathi New Project
Palamaneri
460
UPIPP
Bhagirathi New Project
Lakhwar Vyasi
420
UPHC*
Yamuna
10th Plan
Kishau Dam
600
UPHC*
Yamuna
Early Decision
Vishnu Prayag
400
Jaiprakash Group Alaknanda Prv. Sector (10th Plan)
Srinagar
330
Duncans Group
Alaknanda Prv. Sector (2005-06)
Tapovan Vishnugad
360
-Bids Invited
Tiuni Plasu
42
UPHC*
-Proposed
Katapathar
19
NHPC
-To be taken up (05-06)
G Ganga
70
NHPC
(11th Plan)
Total
3885
CPGP: Compendium of Power Generating Plants, CEA, New Delhi, July-1997
POD PPS: Power on Demand by 2012, Perspective Plan Studies, CEA, July-1999
SANDRP
Info. Source
TOI-D 23/12/01
TOI-D 23/12/01
TOI-D 23/12/01
TOI-D 23/12/01
CEA Annexure-IV
TOI-D 23/12/01
CEA Annexure-IV
CEA Annexure-IV
SANDRP Database
POD PPS
CEA Annexure-IV
POD PPS (Page 43)
JANUARY 2002