09-07-09

Mining – India 1
1. Faridabad mining under scanner 1
2. Steel plants to soon get iron ore mining licenses 2
3. Plea to stop illegal mining in Bellary 2
4. AWAITING CLARIFICATIONS FOR 25 PROJECTS 3
5. Government to expedite Posco’s iron ore mining licence 3
6. Coal India to raise indigenous fuel production 4
7. Coal crunch hits Nalco unit 5
Mining – International 5
8. Villagers oppose two mines at Curpem 6
9. Civilians abused at Zimbabwe diamond mines: watchdog 6
10. Robust 10-year Life of Mine Plan for Paddington 7
11. S.Africa mines won't be nationalised: minister 7
Other News 9
12. Chennai Metro: railways wants Maytas to hurry 9
13. Projects will need approval of tribals, forest-dwellers 10
14. Zero Hour Hunger 11
15. Delhi to host global meet on climate change in October 14
16. There's a need to mitigate medium-term risks arising from Budget 14
17. LEGALLY BINDING COMMITMENTS FOR EMMISSIONS NOT ACCEPTED 17

Mining – India

Faridabad mining under scanner
9 Jul 2009, 0512 hrs IST, TNN

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NEW DELHI: Exactly two months after the SC banned mining in the districts of Gurgaon, Faridabad and Mewat, the Haryana government has instituted

an inquiry into reports of illegal mining in Faridabad, even as local mining officials continue to be in a denial mode.

SC had banned mining in these districts in May this year after it found that the principle of sustainable development which was the basis for allowing mining in 1994 is being rampantly violated and the Aravali exploited mindlessly. But according to some recent media reports, stone-laden trucks are back on the Ballabhgarh-Sohna Road and there is hectic activity inside the mines of Khori Jamalpur and Sirohi the only two legal mining sites in the area before the blanket ban happened.

According to the reports, crushers which cannot operate in the area are running day and night and trucks are being loaded inside the mines. TOI had earlier done a series of stories on mining in Faridabad and its repercussions which include dipping groundwater levels, pollution-related diseases among locals and drying of the lakes of Damdama, Dhauj and Badkhal and the famous hot water springs of Sohna.

A Faridabad mining official who was part of a team headed by principal chief conservator of forests Haryana government which visited the area recently, however, said the team has found that no activity in happening inside the area which was earlier a part of the mine-owner's lease.

"It is not possible for anything to be removed from there because we had cut the roads. But there is some lifting of mud and rubbish happening outside that place on private land. We called the villagers to ask if they had indeed given their land and they said yes. The PCCF however has asked us to check once more if the area is under forest land,'' the official said.

http://timesofindia.indiatimes.com/Delhi/Faridabad-mining-under-scanner/articleshow/4754509.cms

Steel plants to soon get iron ore mining licenses
8 Jul 2009, 2050 hrs IST, IANS

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NEW DELHI: India will speed up the process of granting iron ore mining licenses to various steel companies, including South Korea's Posco, Steel

Minister Virbhadra Singh said here Wednesday.

"We are planning to almost double the production of steel and for that we have to speed up greenfield projects," Singh told reporters on the sidelines of a steel conference.

Referring to Posco, which has been waiting for four years to secure raw material for its proposed $12-billion plant in Orissa, the minister said: "We are looking into the matter and will get this done as soon as possible. We are working with the state government to expedite the matter."

Asia's fifth-biggest steelmaker is planning to build a 12-million tonne capacity plant in Orissa.

"We are hoping something good will happen," Posco India spokesman Saroj Mahapatra said over telephone.

Posco has faced opposition in Orissa on the account of land acquisition.


http://economictimes.indiatimes.com/News/News-By-Industry/Indl-Goods-Svs/Steel/Steel-plants-to-soon-get-iron-ore-mining-licenses/articleshow/4754382.cms



Plea to stop illegal mining in Bellary
8 Jul 2009, 2222 hrs IST, TNN

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HUBLI: The National Committee for Protection of Natural Resources (NCPNR) has urged the Union environment and forests minister Jairam Ramesh to

initiate steps to stop illegal mining along the Andhra Pradesh-Karnataka border in Bellary in violation of the Forest Conservation Act.

In a meeting with Ramesh in New Delhi on June 23, NCPNR founder president S R Hiremath said consequent to the ministry's directive suspending operations of five mining companies, one of them owned by a Karnataka minister has threatened to block the survey to demarcate the inter-state boundary.

The request for such an exercise by the Surveyor General of India, in the context of widespread illegal mining in the area, was made by the Karnataka government following the state Lokayukta's report hinting at the nexus between unscrupulous politicians and officials involved in the racket.

In a subsequent letter to the Union minister, Hiremath said that the order suspending mining operations along the border was subsequently held in abeyance. He has demanded that all mining activities in forest areas be suspended immediately till the inter-state boundary is demarcated.

http://timesofindia.indiatimes.com/Hubli/Plea-to-stop-illegal-mining-in-Bellary/articleshow/4754552.cms

AWAITING CLARIFICATIONS FOR 25 PROJECTS
________________________________________
16:24 IST
Lok Sabha

Coal India Ltd. has requested the Ministry of Environment & Forests to expedite the process of environmental clearance.

The number of coal projects pending for environmental clearance is 29, of which 4 projects have been recommended for environmental clearance and in respect of the remaining 25 projects, clarifications sought by the Expert Appraisal Committee (Thermal & Coal Mining) are awaited.

The project proponents have been advised to prepare Environmental Impact Assessment Reports along with Environmental Management Plans to satisfactorily address the various likely adverse impacts on the environment so that the proposals can be expeditiously granted environmental clearance.

Minister of State for the Ministry of Environment and Forests( Independent charge) Shri Jairam Ramesh replied in a written question by Shri. Rudra Madhab Ray and Dr. Prasanna Kumar Patasani in Lok Sabha today.

http://pib.nic.in/release/release.asp?relid=49890

Government to expedite Posco’s iron ore mining licence

Mumbai: The government will speed up the process of granting Posco an iron ore mining licence, seeking to end a four-year wait by the steel maker to secure resources for its planned $12 billion (Rs58,680 crore) venture in the country.
“We are looking into the matter and will get this done as soon as possible,” steel minister Virbhadra Singh said on Wednesday in New Delhi, while attending an industry conference. “We are working with the state government to expedite the matter.”
Land disputes and the delay in getting a mining licence prevented South Korea-based Posco from proceeding with one of India’s biggest foreign investments. Asia’s fifth biggest steel maker has yet to start building the 12 million tonnes (mt) plant in Orissa. Work on the project, announced in June 2005, was scheduled to start in April 2007.
“We are hoping something good will happen,” Posco India spokesman Saroj Mahapatra said by telephone on Wednesday.
Jharkhand, Orissa and Chhattisgarh account for 70% of India’s coal reserves and 55% of its iron ore, according to McKinsey and Co.
Posco faced opposition in Orissa as locals and political parties want the plant to be moved to non-arable areas from farmlands.
Prime Minister Manmohan Singh in July last year told South Korean President Lee Myung Bak at a summit in Japan that he would help Posco start construction work on the plant in August, according to a statement posted on the website of South Korea’s presidential office.
Initially, Posco will build a 4mt plant and set up a 400MW power plant. The company has sought 600mt of iron ore for the steel mill. Posco joinsArcelorMittal in seeking to expand in Asia, where steel demand is growing faster than in Europe and the US.
In October 2005, ArcelorMittal said it would set up a factory with a final capacity of 12mt in Jharkhand and announced another plant of the same size in neighbouring Orissa the following year.

http://www.livemint.com/2009/07/08212143/Government-to-expedite-Posco.html

Coal India to raise indigenous fuel production

Press Trust of India / New Delhi July 8, 2009, 16:38 IST

To increase coal supply to the power sector, state-run Coal India (CIL) will step up indigenous production of the fuel.

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"Coal India will increase the indigenous production of the fuel to meet demand," Minister of State for Coal Sriprakash Jaiswal said in a written reply to Lok Sabha.
The government has envisaged new mining projects with additional capacity of around 310 million tonnes during the current XIth Five-Year Plan (2007-12).
CIL is taking various steps like improvement in equipment utilisation, timely implementation of projects, improvement in productivity both in underground and opencast mines to increase coal mining capacity.
It is also planning new mines with mechanization and introduction of mass production technology in the underground mines.
He added, "Coal imports are planned by Power Sector every year in advance keeping in view its requirement and Coal India is also contemplating to import the dry fuel."
CIL and its subsidiaries are adopting measures to check pilferage of coal, including regular patrolling in and around the mines.
Meanwhile, the government is considering the issue of major restructuring of CIL during the XIIth Five-Year Plan Period (2012-13).
http://www.business-standard.com/india/news/coal-india-to-raise-indigenous-fuel-production/67088/on

Coal crunch hits Nalco unit
8 Jul 2009, 2256 hrs IST, TNN

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ANGUL: A crunch in coal resources has forced authorities of National Aluminium Company (Nalco) to shut down one of its 120 MW units. The

Navaratna status holder company is also thinking of importing coal from abriad to tide over the crisis, Nalco sources said on Tuesday.

Nalco Employees' Sangha general secretary Nirmala Chandra Samal said the coal stock has gone down to 30,000 to 40,000 tonnes. "The plant needs 17,000 tonnes for its captive power plant daily, while it is getting only 12,000 to 13,000 metric tonnes from the MCL," he said.

At present, seven out of eight units are functioning normally. However, if the present condition prevails any longer, they would be forced to cut down on its power generation from other units of the captive power plant as well, besides closing down pot lines in its smelter plant," a Nalco senior officer said.

The power plant has a total capacity of 960 MW, while at present, it is producing only around 650 - 700 MW. The smelter plant needs 800 MW to run its pot line, sources said. Nalco sources said that the daily production of aluminium has also come down from 1,000 tonnes to 900 tonnes.

To put in its order, the executive director of Nalco, S&P complex, K S Sreedhar said the company has decided to import 2.5 lakh tonne-coal from Indonesia this year. They will also have to import another 2 lakh tonnes in the coming days, sources said. "Due to less calorific value, the boiler of the Captive Power Plants are consuming more coal. So we have placed an order for washed coal for the plant," The executive director said.

Coal comes to the plant either directly by railways or through conveyor belts. The MCL authorities have allegedly been supplying "G" grade coal instead of the required "F" grade coal to Nalco. While the required gross calorific value of coal needed is 39,000 to 42,000 GCV, "G" grade coal has a capacity to produce less than 32,000 GCV, sources added.

A senior MCL official, however, maintained that due to problem in conveyor belts, Nalco is not able to get its required quota of coal. "Redular supply will soon resume," he added.

A high level meeting, held between the Nalco and MCL officials at Talcher on Tuesday, arrived at a decision to supply 10,000 tonnes of coal from Bharatapur mines, while another 7,000 tonnes of coal will be brought from other mines by railways.

Working president of Nalco Employees' Union Dillip Kumar Mishra said the company is facing serious coal crisis for the past few days. He demanded a separate captive coal mine be allotted for Nalco as the company is facing difficulties in meeting its daily requirement. The executive director said that the management is planning on an open cast coal mine near here in Chhendipada block.

http://timesofindia.indiatimes.com/Bhubaneswar/Coal-crunch-hits-Nalco-unit/articleshow/4754477.cms

Mining – International



Villagers oppose two mines at Curpem
8 Jul 2009, 0602 hrs IST, TNN

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MARGAO: People from the Curpem village in the Sanguem taluka vehemently opposed the expansion and operation of two mines in the village. They

voiced their protest at a public hearing at Curpem recently.

Stating that the operation of the mines will have a catastrophic effect on the local populace, Avdhut Prabhudesai from Rivona said that the area is predominantly inhabited by scheduled tribes who depend on agriculture for their livelihood. He said that mining would destroy all the fields in the village, thus threatening their sole source of sustenance.

Further stating that the villages of Rivona and Curpem were already "overmined", Prabhudesai drew the attention of the authorities to the "hearing problems caused to the locals on account of excessive mining in the area." However there is no mechanism to check their health, he lamented.

Another villager, Rama Velip, pointed out to threats posed to the ancient rock carvings in the vicinity and to the flora and fauna if more mines start their operations. Velip also said that that mining has contaminated the water bodies in the area. While the silt from mines invariably finds its way into the Salaulim irrigation project, the Kushawati river is used to dump mining rejects, Velip rued.

Pointing out that the Sawant and Karapurkar committees have identified the area as private forest, Velip said that operation of mines in the locality would be in direct violation of court directives.

Xavier Fernandes from Colomba urged locals to oppose the mining leases "with a view to protecting the environment for posterity."

While 387 written representations were received against the operation of mines, 135 were in favour of the proposal, sources informed.

Rajendra Kamat, environmental engineer of the Goa State Pollution Control Board (GSPCB) and additional collector (South Goa) Prasanna Acharya conducted the hearing.

http://timesofindia.indiatimes.com/Goa/Villagers-oppose-two-mines-at-Curpem/articleshow/4750600.cms

Civilians abused at Zimbabwe diamond mines: watchdog
12 hours ago
HARARE (AFP) — Zimbabwe's military is involved in illegal mining in diamond mine fields in the country's east where civilians are victims of "horrific" violence, a global diamond mining watchdog said Wednesday.
A team from the Kimberley Process Certification Scheme handed to the government an interim report urging the government to suspend production and the export of diamonds in the eastern Marange district amid security concerns.
The report denounced "unacceptable and horrific violence against civilians by authorities in and around Chiadzwa."
The team visited mine fields in eastern districts last week following allegations of human rights abuses there.
"Our team was able to interview and document the stories of tens of victims, observe their wounds, scars from dog bites and batons, tears, an on-going psychological trauma," team leader Kpandel Fiya said in the report.
"This has to be acknowledged and it has to stop," said Fiya, who is deputy mines minister in Liberia, a country whose civil wars were fueled by so-called "blood diamonds."
"I was in Liberia throughout the 15 years of civil war, and I have experienced too much senseless violence in my lifetime, especially connected to diamonds," he said.
The report also stated that there was "direct involvement of the military in illegal mining and related activities that we observed ourselves."
It also expressed concern about the trafficking of diamonds and "lack of border control or other measures to control smuggling."
The Kimberley team included members of the European Commission, World Diamond Council, US State Department, and the South African Diamond and Precious Metals regulator.
In June, a Human Rights Watch report accused Zimbabwe's armed forces of using torture and forced labour to control the Marange fields, saying more than 200 people had been killed last year -- allegations which Zimbabwe denied.
On Sunday, the Zimbabwean authorities said they will withdraw soldiers guarding diamond fields in the country's eastern district following advice by the Kimberley team.
"We agreed to remove the soldiers but it will be done in phases while proper security settings would be put in place," deputy mines minister Murisi Zwizwai was quoted as saying by The Sunday Mail newspaper.
The Kimberley Process was launched in 2003 to curb the flow of conflict diamonds into the mainstream market following wars in countries like Liberia and Sierra Leone.

http://www.google.com/hostednews/afp/article/ALeqM5hpNd_sT1uTI60KQALd3b11lX4p3A

Robust 10-year Life of Mine Plan for Paddington

Norton Gold Fields (ASX: NGF), one of the largest ASX-listed domestically-owned gold
producers, today released an updated Life of Mine Plan for its Paddington project north of
Kalgoorlie.
The Plan shows a 10-year pipeline of gold production from well defined projects at Paddington.
Underpinning the new plan is an increase in Reserves and better definition of Resources, an
increase in gold output to more than 200,000 oz per year, along with the potential to reduce
unit costs.
"The new mine plan drew on the considerable exploration and assessment work undertaken
during the past twelve months across the Company's expanded footprint in the Goldfields
region," Managing Director, Jon Parker, said.
The Plan incorporates the Bellamel projects acquired by Norton in late 2008.
"Paddington is a long life gold mine, and this recent work has delivered an enhanced ten-year
pipeline of production which strengthens Norton's position as a serious gold producer," Mr
Parker said.
"Our production program is ramping up toward our medium-term target of 200,000 oz per year.
Our high grade Homestead underground operation is on schedule to come on stream in the
next six months. It will lift production and reduce unit costs," Mr Parker said.

http://newsstore.theage.com.au/apps/previewDocument.ac?docID=GCA00967689NGF

S.Africa mines won't be nationalised: minister
Wed Jul 8, 2009 3:18pm GMT

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JOHANNESBURG (Reuters) - South African Mineral Resources Minister Susan Shabangu told Reuters on Wednesday the country would not nationalise mines despite calls from the ruling party's allies.
The African National Congress' youth wing and South Africa's powerful trade union federation COSATU have asked the government to take control of mines in a country which is the world's largest source of platinum and a major producer of gold.
"We are definitely not going to nationalise mines," Shabangu said in an interview.
"The ongoing debate will not change the government's policy at all. It must be a concern for investors, but I want to assure them that as government we are not going to go on that route. The South Africa they knew yesterday is the same today and nothing will change. It is a non-issue."
South Africa's new President Jacob Zuma has faced pressure to introduce economic policy changes in the midst of a recession and spreading poverty. Those behind the calls to nationalise the country's mines say they want to protect jobs, many of which have already been lost during the global economic downturn.
"People can talk and explore the issue at an intellectual level according to their persuasions," Shabangu said.
The ANC said this week it would allow debate on nationalisation, but many analysts have said it would harm the biggest economy in Africa if such a policy was adopted.
She said South Africa still held key concerns over Xstrata Plc's merger proposal to Anglo American Plc, including the possible impact on jobs and anti-trust issues.
Shabangu said she had met Xstrata Chief Executive Mick Davis earlier on Wednesday, and was briefed about its merger proposal.
"He came to brief me about their intentions. I still have concerns over this issue, our biggest interest is the preserve of our national interests -- where will they be listing such an entity, how will it impact on the employment situation and also there are issues on the laws of competition," Shabangu said.
She said Davis was still keen to push through the nil-premium merger, which Anglo has rebuffed. She declined to say if Xstrata had indicated whether it could offer a premium.
"It's quite clear from their side they are prepared to move forward with the merger," she said.
Xstrata, the world's biggest exporter of coal for power plants, wants to create a group to rival the global mining sector's No. 1 firm, BHP Billiton, and Rio Tinto.
A combination of the two firms would create the world's biggest producer of zinc, platinum, coal for power stations and ferrochrome and rank as the world's second biggest in coal for steelmaking and copper

http://af.reuters.com/article/investingNews/idAFJOE5670N820090708?sp=true
Other News

Chennai Metro: railways wants Maytas to hurry

Hyderabad/Chennai: Maytas Infra Ltd, which on Tuesday lost the Hyderabad Metro Rail contract after failing to raise finances, has run into trouble in Tamil Nadu (TN) as well, with some of its projects likely to be delayed by up to nine months.
Southern Railway has issued several notices to Maytas in the past few months to expedite Rs250 crore worth of mass rapid transit system (MRTS) projects in Chennai, a top railway official said.
“We are worried over the delays in execution of the works awarded to Maytas Infra, which seems to have landed in some financial troubles early this year,” R. Ramanathan, chief administrative officer (construction) at Southern Railway, said over the phone on Wednesday. “The works are not progressing at the expected levels and we are disturbed over the delays.”
The Hyderabad-based infrastructure firm has lost several contracts in recent months after its main promoter, B. Ramalinga Raju, confessed to India’s largest accounting fraud at Satyam Computer Services Ltd in January. His son B. Teja Raju is Maytas Infra’s CEO.
On Tuesday, Maytas lost its biggest contract, the Rs12,132 crore Hyderabad Metro Rail project. The Andhra Pradesh government scrapped the award after Maytas failed to achieve financial closure even three months after the deadline expired.
As to the TN projects, Ramanathan expects delays of at least three-four months in the elevated Metro extension and modernization works in Chennai and up to nine months for laying double tracks on the Chengalpet-Villupuram route.
Southern Railway had awarded seven projects to Maytas—four relating to MRTS in Chennai and three track laying works on the Chengalpet-Villupuram route. Maytas won contracts to extend Chennai’s elevated rail line by 5km from Velachery to St Thomas Mount, between January and April 2008, and the track laying project in December.
Southern Railway can terminate and re-tender the works awarded to Matyas Infra, but is not keen on exercising that option. “We are worried that re-tendering and subsequent legal issues may further delay the works, which we are not interested, keeping in view the inconvenience to commuters,” Ramanathan said. “That’s why we are pressurizing the company to expedite the works and are constantly reviewing the works.”
A Maytas spokesperson, who didn’t want to be named, blamed the delays on incessant rains, transport strikes and non-availability of land.
The firm expects to complete the Metro extension project by September and the track laying works by July 2010—“as per the timelines sanctioned by railways”, he added.
The deadline for doubling the tracks on the Chengalpet-Villupuram route is April 2010, Ramanathan said. Maytas, he added, was given 18 months for the Rs72 crore Metro extension project, but the firm would now be able to complete work on two of the three stretches only by June.
Maytas had to drop out of the third stretch, worth Rs30 crore, as it wasn’t given land by the state government, he said. Another Southern Railway official said a re-tender has been called for the last stretch.
station in Chennai and carrying out modernization works at other existing stations. The firm is also constructing an MRTS
Following the fraud at Satyam, Maytas Infra landed in trouble with the Karnataka government, which cancelled two airport projects in Shimoga and Gulbarga, worth a combined Rs200 crore, it had awarded to a consortium led by the firm. (On Monday, the state government decided to award back the contract to Maytas.)
Soon after, London-listed Vedanta Resources Plc. cancelled a contract with Maytas Infra citing slow progress of work and failure to pay contractors. The agreement was for building a township for staff at the group’s mining operations at Jharsuguda in Orissa, valued at Rs232.69 crore.
State-owned Power Grid Corp. of India Ltd also revoked several rural electrification contracts, worth Rs395 crore, it had awarded to Maytas Infra under the Rajiv Gandhi Grameen Vidyutikaran Yojana.
Following a representation by the lenders of the infrastructure firm, the Company Law Board on 5 March appointed its nominees on the board of Maytas Infra, who have since then successfully negotiated with lenders and obtained a debt restructuring package for the firm.
c.sukumar@livemint.com

http://www.livemint.com/2009/07/08232352/Chennai-Metro-railways-wants.html?h=B

Projects will need approval of tribals, forest-dwellers

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Chetan Chauhan, Hindustan Times
New Delhi, July 08, 2009
First Published: 00:45 IST(8/7/2009)
Last Updated: 00:48 IST(8/7/2009)
Soon, government clearance will not be enough to start an industrial or development projects in the forests. It will be mandatory to get the approval of the tribals who live in these forests.
Even projects that don't involve people being displaced but are close to a dwelling cluster, the permission will be a pre-requisite.
A notification to this effect — with the aim of protecting the land rights of tribals and forest dwellers like any other Indian citizen — will be issued by the end of this week, a senior official of the Environment and Forests Ministry, who was not willing to be quoted, said.
Projects like the construction of road, coalmines or steel factories are allowed mostly in degraded forests — which constitute over 60 per cent of forests in India. For any project, approval of the Forest Appraisal Committee of the Ministry of Environment and Forest is a must. But prior approval of the people on whose land the project is to be set up was not a condition.
“On official records, the land was not owned by tribals or forest-dwellers. It was government land and therefore, their approval was not required,” an environment ministry official said on condition of anonymity.
There is a practice of holding public hearing at project sites — a requirement for forest clearance — but Environment Minister Jairam Ramesh recently admitted these were mostly “fixed”.
Things have changed to a great extent since the new law — the Scheduled Tribes and Other Traditional Forest-Dwellers (Recognition of Forest Rights) Act, also known as the Forest Rigths Act — came into force from January 1, 2008.
It provides for registration of land in possession of tribals and forest dwellers for three generations in their names and gives rights over minor forest produce. Before it came into force, 83 per cent tribals in Madhya Pradesh and Chhattisgarh had no legal rights over the land they owned for generations and the forest produce.
Since the implementation of the law, over 60 per cent land claims of tribals in the two states and Orissa have been settled. “Land has been registered in their names,” said Shankar (who only uses his first name) of Campaign for Survival and Dignity, a body representing tribals.
“Diversion of forestland without respecting people’s right is illegal and in violation of the government’s commitment to forest-dwellers,” Shankar said.
Ramesh agreed. “It is an issue and we are moving in that direction,” he told HT.

http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=IndiaSectionPage&id=a29bc28b-a9c9-4d3f-96eb-92a7b087c8ee&Headline=Projects+will+need+approval+of+tribals,+forest-dwellers

Zero Hour Hunger

The only worry is that the proposed National Food Security Act of the Congress-led regime should not push the hungry deeper into a virtual hell
Devinder Sharma Delhi
The path to hell, they say, is paved with good intentions. The way to feed the hungry and impoverished in India - and I am talking of the world's largest population of hungry and malnourished - too seems to be driven by good intentions. My only worry is that the proposed National Food Security Act should not push the hungry deeper into a virtual hell.
For over 60 years now, the poor and hungry have lived in a dark abyss, waiting endlessly for their daily morsel of grain. The new food security law, with the underline promise of food-for-all, surely, provides a ray of hope for the hungry millions. It can be a new beginning, if enacted properly, and can turn appalling hunger into history.
From what I read in the newspapers, and what is emerging from the hectic parleys that the Union food ministry as well as the Planning Commission are engaged in, the path being developed is unlikely to deviate from the direction to hell. If re-classifying below-poverty-line (BPL) families by identifying the real poor who are entitled to 25 kg of grain (wheat and rice) at Rs 3/kg is the primary objective, than we have missed the very purpose of bringing in a statutory framework to ensure the right to food.
What makes it more apprehensive is the urgency with which the proposed law is being drafted. Meeting the deadline of putting this law into gear in the first '100 days' of UPA-II without first adequately debating the finer details, and trying to work out a plausible structure for a long-term food security plan - is fraught with dangers. Merely replicating the public distribution system (PDS) in a new avatar will not be sufficient to pull out the hungry from a man-made vicious circle in the margins, designed over the years by the power establishment at the top.
At present, the government provides 35 kg of foodgrains, including wheat and rice, to 65.2 million families classified as living below the poverty line (BPL). These subsidised rations are made available at a price of Rs 4.15 per kg for wheat and Rs 5.65 per kg for rice. For the 24.3 million families classified under the Antyodya scheme (also part of the BPL category), the price of grains is reduced to Rs 2 for wheat and Rs 3 for rice.
In other words, PDS on paper caters to 316 million people. These are the poorest of the poor, and the way the BPL line has been drawn (which should be basically called a 'starvation line'), the PDS should be providing them their daily need. If the PDS had been even partially effective, I see no reason why India should be saddled with the largest population of hungry in the world.
There is no reason why Punjab, for instance, the best performing state in terms of hunger, should be ranked below Gabon, Honduras and Vietnam in the Global Hunger Index.
Any programme aimed at providing food-for-all on a long-term basis has to look beyond food stamps and PDS. India must move to a Zero Hunger programme by attacking the structural cause of poverty and hunger.
Creating adequate employment opportunities and promoting sustainable livelihoods by involving the village communities have to be woven in any long-term food security plan. Better healthcare facilities, access to safe drinking water and sufficient micro-nutrient intake will ensure that food is properly absorbed.
An empty stomach cannot wait. With the passage of time, it will lead to social upheavals and the repercussions can be more damaging to society. It is so painful to see that while the government is trying to fight the growing menace of naxalism, it actually is creating conditions that helps promote extremism. Agriculture is being sacrificed for the sake of industry, mining and exports, land acquisition is divesting the people from their only economic security and farmers are being forced to quit agriculture.
The proposed National Food Security Act cannot be a stand-alone activity. It has to be integrated with various other programmes and policy initiatives to ensure that hunger becomes history. To achieve this objective, the food security plan should essentially aim at adopting a five-point approach:
Public policies for zero hunger: A combination of structural policies aimed at the real causes of hunger and poverty, specific policies to meet the household needs for long-term access to food and nutrition, and local policies based on local needs keeping the concept of sustainable livelihood in focus. For instance, all policies should be aimed at reversing rural-urban migration. The more the migration, more urban centres will be choked and more will be the burden on government support for fighting hunger. Agriculture and rural development remains the best defence against the growing threat of naxalism.
Sustainable livelihoods: In a country where agriculture is the mainstay of the economy, all efforts must be to strengthen low external input sustainable agricultural practices. There is an urgent need to revitalise the natural resource base, restore groundwater levels, and provide higher incomes to farmers. A monthly take-home income package based on land holdings has to be worked out for farmers. The NREGA has to be integrated with agriculture, and the interest on micro-credit for the poorest of the poor has to be brought down to 4 per cent from the existing 20-48 per cent.
Public distribution system: There is an urgent need to dismantle the PDS except for the Antyodya families. The present classification of BPL and APL need to be done away with. The recommendation of the National Commission on Enterprise in Unorganised Sector, which states that 836 million Indian people are able to spend only a paltry sum of less than Rs 20 a day, should be the criteria for a meaningful food-for-all programme. The average ration per family at 25 kg also needs to be revised upwards, and there is a need to expand the food basket by including coarse cereals and pulses.
Foodgrain banks: The dismantling of the PDS has to be followed by setting up of foodgrain banks at the village and taluka level. Any long-term food security plan cannot remain sustainable unless the poor and hungry become partners in the fight against hunger. There are ample examples of successful models of traditional grain banks (for instance, the famed gola system in Bihar), which need to be replicated through a nationwide programme involving self-help groups and NGOs. We need to draw up programmes and projects that have long-term sustainability and become viable without government support in a couple of years, involving charitable institutions, religious bodies, self help groups, and non-profit organisations to ensure speedy implementation.
International commitments: Global commitments and neo-liberal economic policies should not be allowed to interfere with the food security plan. The WTO agreements, the Free Trade Agreements (FTAs) and various bilateral trade deals should not be allowed to displace farming communities and play havoc with national food security. For instance, India cannot compromise agriculture in the ongoing Doha Round of negotiations in WTO and allow cheaper and subsidised imports. Importing food for a country like India is like importing unemployment thereby adding on to hunger.
JULY 2009

http://www.hardnewsmedia.com/2009/07/3086

Delhi to host global meet on climate change in October

Press Trust of India / New Delhi July 9, 2009, 11:05 IST

With clean technologies playing a key role in tackling climate change threats, a two-day global meet is being held in the national capital in October to promote international technology development and transfer within the developed and developing nations.
The conference, likely to be inaugurated by Prime Minister Manmohan Singh on October 22, will bring together governments, experts, industry bodies and civil society from various nations to help formulate a roadmap for technology in the context of climate change mitigation and adaptation.
"The conference is in context of the Bali Action Plan for enhancement of long term cooperation for implementation of the United Nations Framework Convention on Climate Change (UNFCCC)," a senior Environment Ministry official said.
To help pave the way for a successful outcome in Copenhagen slated in December, the conference will seek to advance understanding on key actions needed to accelerate technology development and transfer in all countries in accordance with their national needs.
The conference would also throw light on technology scenarios, institutional and business models of development and deployment, mechanisms to promote technology transfer to developing countries, and to enhance the scope for cooperation on research and development.
Besides environment ministry, the conference is being organised in collaboration with the UN Department of Economic and Social Affairs.
http://www.business-standard.com/india/news/delhi-to-host-global-meetclimate-change-in-october/67156/on

There's a need to mitigate medium-term risks arising from Budget
Mukul G Asher
Thursday, July 9, 2009 1:22 IST
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There is general consensus, even in official circles, that India's highly expansionary Budget for the 2010 fiscal carries significant medium-term risks for growth and price stability.
This column focuses on the reasons for the above consensus concerning medium-term risks, and suggests measures which could help in mitigating them.
First, projected fiscal deficits in FY 2009 (6.1% of GDP) and in FY 2010 (6.8% of GDP) are more than twice the targets set under the Fiscal Responsibility and Budget Management (FRBM) Act of 2003.
Moreover, the projected fiscal deficits are in the context of dangerously high internal public debt to GDP ratio of 66% in 2007-08. This ratio is expected to rise further as both the Centre and the States pursue short-term growth through government expenditure expansion financed by borrowing. The Budget has already relaxed the FRBM targets for the states to 4% of States' GDP instead of 3.5%. The anticipated development of the municipal bond market, while meriting serious consideration, would also raise the total government debt further.
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Budget 2009
Second, the lack of urgency and focus on fiscal consolidation will severely constrain future fiscal flexibility in allocating expenditure in areas that will enhance growth and social cohesion, and meet India's urgent external and internal security needs as a rising power. Thus, for the Central government alone, interest payments are projected to be 3.8% of GDP (about a quarter of its current expenditure) in FY 2010. If salary, pension and other statutory expenditures are added, very little will be left to meet changing priorities.
As an example, increasing life expectancy of an average Indian (an Indian reaching age 60 is expected to live another 20 years on the average, and this will rise in the future); and prevalence of lifestyle diseases will require much greater expenditure on healthcare for people at all levels of income. Much of this increase will need to be financed from public sources.
The mandatory New Pension Scheme (NPS) for civil servants introduced in 2004 has already had a positive impact on the expenditure discipline as the government must set aside pension liabilities each month instead of meeting such expenditure from current revenues. But the NPS will not be able to generate fiscal savings until much later as it covers only those who have joined the civil service after January 2004. Moreover, as the number of elderly increases, the budgetary expenditure on social assistance or pensions to the elderly will need to increase considerably.
The Budget could have given greater impetus to the voluntary NPS available to all Indian citizens from May 1, 2009 by rationalising the tax treatment to provide a level playing field with other retirement products such as the mandatory provident funds.
It is encouraging that the government intends to introduce the Pension Fund Regulatory and Development Agency Bill in 2009. It is hoped that this Bill will provide sufficient incentives to voluntary participation in the NPS, and enable these funds to be channelled into infrastructure and other priority areas. Given India's demographic advantage reflected in the rising working-age to total population ratio till about 2035, such savings can be an important avenue to mitigate the crowding-out effects of higher government expenditure.
Third, while the Budget has several positive features on the revenue side, these are not likely to assist in fiscal consolidation in the short term. The Budget abolishes the fringe benefit tax and commodity transaction tax. There is an assurance that the basic consensus on the goods and services tax (GST) has been reached among the Centre and the States. It promises a draft of the new income tax code within in 45 days, with enactment during the later part of 2009.
The emphasis in the Budget on lowering administration and compliance cost of taxation is also in the right direction. But, this will require restructuring the tax administration, with increasing focus on specialisation and professionalism of its staff. This should be backed by application of modern technology, and data mining capabilities.
India requires two major broad-based taxes: the income tax and the GST. Progress in this direction will provide greater flexibility and resilience to India's tax system.
The construction of a modern tax system will, however, need to be integrated with civil service reform. It is hoped that the recommendations of the second Administrative Reform Commission set up in 2005 will be given much greater consideration and weight than has been the case so far.
Fourth, the Budget proposes significant increases in social sector schemes (such as those under the National Rural Employment Guarantee Act and under Bharat Nirman) and for infrastructure in both urban and rural areas. In particular, funds for Jawaharlal Nehru National Urban Renewal Mission have been increased by 87% to Rs 12,900 crore; and for the National Highway Authority of India by 21% to Rs 15,900 crore. The agricultural sector has also received well-deserved attention.
The focus of the Budget, however, is on increasing the outlays, without elaborating on the governance and delivery of services reforms emphasised in the President's address to the Parliament on June 4, 2009. While there has been rhetoric about obtaining greater outcomes from given budgetary outlays, the political and civil service leadership to translate this rhetoric to measurable, visible progress has been lacking.
The finance minister must realise that ever increasing outlays, without commensurate improvements in quality and quantity of public services, is a recipe for anaemic economic growth and high inflation. These adversely impact the aam aadmi the most.
Such improvements, in turn, will require greater urgency in budgetary reforms (for example, shift towards accrual budgeting, which will enable construction of both the income statement and the balance sheet must be accelerated); in greater competency in engaging in public-private partnerships; administrative reorganisation; much greater application of economic reasoning in design, implementation, and assessment of various government schemes; and more effective use of the skills and talents of the civil servants in carrying out their responsibilities.
India's political economy and temperament is more suited to incremental, often decentralised piecemeal reforms. Perhaps, there will be greater clarity concerning fiscal reforms once the 13th Finance Commission submits its report in October 2009. Failure to mitigate the medium-term risks of the FY 2010 Budget will be a severe setback to the hopes of a rising India in the 21st century.
The writer is professor of public policy, National University of Singapore

http://www.dnaindia.com/money/comment_there-s-a-need-to-mitigate-medium-term-risks-arising-from-budget_1272370

LEGALLY BINDING COMMITMENTS FOR EMMISSIONS NOT ACCEPTED
14:14 IST
Factsheet

The world believes that it may be difficult for India to accept emission reduction targets on a national basis, why does it oppose the setting of such targets on a sectoral basis for carbon and energy intensive industries? Here, different aspects like inputs, skill level, technology etc have to be considered which are ignored by the world. Beyond this they also feel that India can set these targets taking into account the different levels of economic development of different countries. This will also address the apprehension of developed countries that assumption of strict emission standards by them would render their industries uncompetitive relative to those in major developing countries. India firmly believes that the issue of global trade negotiations should not be dragged into Climate Change deliberations.

India has an Energy Conservation Act under which it has identified 9 energy intensive industries for observance of mandatory energy efficiency standards. The NAPCC also has a National Mission on Improving Energy Efficiency. India also encourages Indian Industry to collaborate with its counterparts across the world to exchange best practices and improve energy efficiency through better management and/or technological innovation. However, the setting of global standards for efficiency and/or emissions on a sectoral basis, as legally binding commitments, is a different matter altogether. First, such standards cannot reduce to a single benchmark, wide differences in industrial processes even within the same industry, on account of differences in input use, the technology adopted, the skill level of personnel employed and the overall social and economic context in which production takes place.

Secondly, if sectoral standards become the basis, as is being argued, for the imposition of compensatory tariffs to ensure a so-called “level playing field”, then protectionism will become rampant under a green label.

Thirdly, global action on Climate Change, based on the UNFCCC, is not conditional upon maintenance of trade competitiveness or level playing fields. These issues belong to global trade negotiations not to Climate Change negotiations. Introducing these new dimensions into the Climate Change discourse, would make our task more complex and difficult than it already is. Climate Change negotiations should remain focused on addressing the grave implications of Climate Change and should not impose conditionality or additional burdens on developing countries.

Climate Change negotiations are taking place against the backdrop of an increasingly globalize and interconnected and interdependent world economy. Development must, therefore, remain at the centre of the global discourse. Action on Climate Change must enhance, not diminish the prospects for development. It must not sharpen the division of the world between an affluent North and an impoverished South, and justify this with a green label. What we require is a collaborative spirit which acknowledges the pervasive threat of Climate Change to humanity and seeks to find answers that enhance, not diminish the prospects of development, particularly of developing countries. All members of our common global family should have equal entitlement to the fruits of prosperity.

The world is undergoing an unprecedented financial and economic crisis hence financial resources, may not be forthcoming. In this regard, India believes that investment in addressing Climate Change, especially in renewable energy, could create new industries, new jobs and spur technological innovation. Action on Climate Change must become part of the solution to the financial and economic crisis, in its causality. It is in this context, that India has welcomed US President Barak Obama’s plan for a 10-year, US $ 150 billion Renewable Energy Initiative and expressed its readiness to become an active partner.

http://pib.nic.in/release/release.asp?relid=49975