Mining – India
1. Tata Steel eyes overseas mines
2. CIL purposes to grow Rs 6,000 crore via stake sale of 10%
3. BJD, Congress have colluded: Samrudha Odisha
4. India Inc cashes in on slowdown to save cost
5. Goa continues to mine illegally
6. UK council urged to prevent bauxite mining in Orissa
7. Consensus on coal block auction system
8. Corporate Round Up: Tata Chemicals, Gujarat NRE Coke
9. Anil Agarwal's Big Bang Theory
Mining – International
10. Exploring Joburg’s mine dumps
11. Northam to raise funds for new mine
12. £26,000 to improve ex-mining village
13. Senate committee to probe farm mining bid
14. African Copper posts H1 profit and restarts Botswana mine
15. No job losses expected in Mudgee mining takeover
Other News
16. Two Maharashtra tribal villages get community rights
17. Dugwell Recharge Scheme to be implemented at a cost of Rs. 1798.71 crores
18. Enforcement of important Environmental Laws
19. Drought: officials told to make alternative plans
20. Drought looms large over Andhra
21. Eco-Clubs in India
22. Science versus drought
Mining – India
Tata Steel eyes overseas mines
; Press Trust of India
NEW DELHI, 16 AUG: Aiming at raw material security, primarily, for its global operations, the world's sixth largest steel maker, Tata Steel, is scouting for iron ore and coking coal mines worldwide and is in talks with two mining firms in Vietnam and in South Africa, respectively, for joint ventures.
“We have an option in a South African iron ore mine to enter into a joint venture with the promoters. This project is currently under evaluation,” Tata Steel said in its annual report for the financial year 2008-09.
Tata Steel will also take a minority stake in an iron ore mine in Vietnam to feed its proposed JV steel unit there. “Tata Steel will take a 30 per cent share in the Thach Khe iron ore mine which is about 60 km from the steel project,” the report added.
The steel maker in 2007 entered into an agreement with Vietnam Steel Corporation to set up a mill. Tata Steel will have a 65 per cent stake in the JV.
The South African mine would primarily cater to its European steel firm Corus which lacks raw material security.
“The highest priority is being given to ... ensuring raw material security for the European operations which do not have captive iron ore and coal resources,” Tata Steel chairman, Mr Ratan Tata, said in the report.
Tata Steel, however, did not give details of estimated reserves of the two mines.
Besides the two mines, the company is also evaluating mineral projects in Brazil and Australia, the report said, adding that “to enrich its raw material supply”, it had set up joint ventures in Queensland, Australia and Thailand.
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=264897
CIL purposes to grow Rs 6,000 crore via stake sale of 10%
Posted August 17th, 2009 by Narendra Jakhad
• Coal India
• Company Updates
• Energy Sector
India’s largest coal mining company Coal India Ltd (CIL), which is keenly acting on the issue of disinvestment with the Centre, purposes to lift Rs 6,000 crore via stake sell of 10%.
Mr. PS Bhattacharyya, CIL Chairman, talked to the Union disinvestment Secretary and discussed the issue.
According to the sources, the modalities are still to be determined.
A senior official stated that they are directing to mop up Rs 6,000 crore through disinvestment of 10% government equity. The proposition is being analyzed by the Centre.
The Union coal ministry wants to first introduce a Bill to improve the existing Coal Mines Act of 1973. The coal major looks for the disinvestment process to be settled within a year. It had laid a tentative timeline of emerging with an initial public offer by September 2010.
The first right to buy shares would be given to the employees of the company. The second option of purchasing shares was for the people whose land was acquired by the coal major for several mining projects.
BJD, Congress have colluded: Samrudha Odisha
Express News Service
First Published : 17 Aug 2009 04:23:00 AM IST
Last Updated : 17 Aug 2009 04:01:07 PM IST
BHUBANESWAR: While the Opposition is demanding a CBI probe into the multi-crore mining scam, Samrudha Odisha, a fledgling political party, has demanded an impartial inquiry by a citizens’ committee comprising mining experts, economists and intellectuals. Alleging involvement of ruling BJD ministers, MLAs, politicians and bureaucrats in the scam, party president Jatish Chandra Mohanty told mediapersons here today that the State Vigilance, being an instrument of the Government, will not be able to expose the scamsters.
Let the people of Orissa be given a chance to make a thorough investigation and recommend to the Government necessary changes in the policy regulating mines and minerals, he said.
As the people have started realising that the illegal mining activities were going on with the connivance of the Government, there is nothing more to expect from the Vigilance probe, he remarked.
Accusing the Congress-led UPA Government at the Centre of conspiring to make Orissa poorer by looting its mineral wealth, Mohanty said that the ruling BJD has a secret understanding with the Congress.
While a handful of non-Oriyas are looting the mineral wealth, the Naveen Patnaik Government has done nothing to prevent it, he said.
As a majority of the mine owners are non-Oriyas, registered offices of their companies are located outside the State. While these mine owners are earning thousands of crores from export of iron ore and other minerals from the State every year, tax on their income goes to other states. Mohanty demanded that companies having mining or mineral business in the State be asked to open their registered offices here so that the Government will benefit from their income tax.
When the State is losing heavily due to non-revision of royalty on minerals and coal, it is unfortunate that the Centre is advising the State to enhance production to earn more.
Silence of the State Government over the issue is more baffling, he said.
Mohanty said that his party would take the issue to the people to expose the Government.
India Inc cashes in on slowdown to save cost
Nevin John & Swaraj Baggonkar / Mumbai August 17, 2009, 0:09 IST
The government may face fresh problems for its mammoth borrowing programme, with several major banks, especially public sector players, expressing difficulty in buying more long-tenure bonds during the auctions owing to growing mark-to-market risks to their balance sheet.
One indication of this was the fact that many large bond buyers stayed away from the Rs 12,000 crore auction conducted on August 7 when Reserve Bank of India (RBI) rejected all bids.
Treasury executives at some of the largest bond buyers said their bank had little headroom to buy government securities and hold these in the held-to-maturity (HTM) category.
Banks can keep securities in the HTM category only up to 25 per cent of net demand and time deposits. These securities remain in their portfolio till maturity, so banks do not have to follow mark- to-market accounting and make provisions if the value of the security drops below its face value.
When banks buy a government bond, they classify them into three categories — trading, available for sale (AFS) or HTM. If a security in the trading portfolio is not traded for 90 days it has to be shifted to AFS. But the RBI expects banks to shift securities from AFS to HTM, or vice versa, at the start of the year and that too with prior permission of the bank’s board or the investment or the asset-liability committees.
With HTM capacity virtually exhausted, any bonds banks buy now have to be classified as available for sale (AFS), for which mark-to-market provisions would be required. Fearing a mark-to-market hit, banks have become reluctant to put the securities in this category since yields are projected to rise. Bond prices and yields have an inverse relationship. So, when bond yields harden, there is price erosion for which banks have to set aside funds and take a knock on their profits.
Many of the treasury heads at the public sector players confirmed that they stayed away from the August 7 auction and at least one of them has also written to the central bank, pointing to its inability to make large purchases.
Bankers said one option for the RBI was to raise the ceiling on HTM classification from the present level of 25 per cent of the net demand and time liabilities. “Even if it is 27 or 28 per cent, we will be able to come back to the auctions,” said a bank executive.
The government and RBI have taken several steps to ensure that the Centre’s gross market borrowing, which has jumped from the second half of the last financial year, to fund the stimulus packages, did not upset the financial sector and loan flow. During the current financial year, the Centre has budgeted to borrow a record Rs 4,51,000 crore, of which Rs 2,99,000 crore is to be borrowed by the end of September.
With lower demand for credit, banks have stepped up investment in government securities, which rose to Rs 1,63,000 crore during April-July 2009 against Rs 31,259 crore in corresponding period last year.
A treasury executive with private sector bank said that while banks had the option not to participate in bond auctions, the public sector players had practically no choice but “to pick up” bonds to support the borrowing programme.
“A higher level of the investment portfolio is exposed to ups and downs in interest rates, making the balance sheet volatile for no fault of ours,” said a public sector bank executive.
The company’s net sales dropped 9.5 per cent to $10.18 billion in the same period.
Hindalco was also able to bargain with banks and revised the terms of its $982 million bank loan for the Novelis acquisition.
The Birla group’s other overseas acquisitions, including Canadian BPO firm Minacs ($125 million) and mines in Australia, also dented the group’s bottom-line. So Aditya Birla Minacs, the group’s business process outsourcing (BPO) arm, closed three centres, with a capacity to house 1,200 people, in Canada. The company also downed the shutters of units at Pickering, Saskatoon and Chatham in Canada. The company has 12 centres in Canada.
Faced with high costs and falling demand, the firm is now shifting part of its back-office operations from Canada to India, said a company official. “To consolidate and rationalise costs, we have shifted close to 250 of the 1,200 jobs to India,” he added.
The slump in copper prices and demand forced Aditya Birla Minerals, the Hindalco subsidiary, to close its Mount Gordon copper mine at Queensland in Australia. Mount Gordon produced 17,815 tonne of contained copper in the last financial year against 23,886 tonne last year. “Due to the global financial crisis and significant drop in copper prices, mammoth underground mine operations were put into care and maintenance,” Australia-listed AB Minerals said in its annual report.
The group has few other options. Prasad Baji, senior vice president of Edelweiss, said the costly operating structure of the acquired entities definitely required pruning, mainly to bring them under the low-cost and high operating margin format of Indian companies. “Overhead costs in India are lower than the developed and developing countries. Through rationalisation, the companies are rightly aiming to align costs with their Indian operations,” Baji added.
Although analysts dispute synergies between Tata Motors and Jaguar and Land Rover (JLR), the Indian auto maker is taking steps to save the sinking premium European models. The country’s largest auto house, which took over JLR from Ford Motor Company in June last year, has cut more than 2,000 jobs so far with about 500 more jobs also on the line. Employee strength at the three major manufacturing facilities and two advanced design and engineering centres in UK totalled more than 16,000.
The company appointed KPMG and Roland Berger Strategy Consultants a couple of months back to advise it on cost cutting and cash management. A special team at JLR is also looking at expanding the vendor base in India, east Europe and China to source low-cost components. JLR has already implemented significant cost reduction initiative across the business. Fixed marketing and selling costs have been reduced in line with sales volumes, in addition to headcount reductions.
The Ruias have also joined the queue. Essar Steel’s acquired entity Algoma is also rationalising operations in Canada during downturn. It has, however, taken back most of the 2,500 workers laid off earlier on the assumption that it would require more workers because it is increasing capacity, said J Mehra, chief executive officer of Essar Steel. “Algoma’s annual capacity will be increased to four million tonne from the current 3 MTPA by year-end and later it will to go up to five million tonnes,” Mehra recently said.
Sajjan Jindal-controlled JSW Steel is keen to revive its US mills, which is utilising just 15 per cent of its 1.7 million tonne annual production capacity because it expects higher demand soon. In the June-ended quarter, JSW Steel’s consolidated numbers were marred by demand contraction and low capacity utilisation at the US mills. Later, the company took cost-cutting measures such as lowering fuel consumption and reducing procurement costs.
JSW Group's Chief Financial Officer M V S Seshagiri Rao said the mills will run at 30 per cent capacity within three months as the market recovers slowly. As part of the revival efforts, JSW plans to sell the products from mills in Texas at the African and Latin American markets in addition to the existing markets. Mexico and Chile are next targeted markets for the products.
Goa continues to mine illegally
Mayabhushan Nagvenkar
Mayabhushan Nagvenkar
A polluted waterbody near Bicholim mining site
State government report stops short of taking action
A GOVERNMENT inspection of 48 mines in Goa found 35 of them operating without a lease. Some of them did not have mandatory clearances. A committee chaired by the state’s chief conservator of forests in a recent report highlighted the extent of illegalities in the state’s Rs 6,000-crore mining industry. The opposition BJP alleged the committee did not take action despite chief minister Digambar Kamat’s directive to stop illegal mining on the spot.
The report blew the lid off companies that work without requisite clearances or renewals.
These include heavy weight mining companies such as Sesa Goa Ltd, Salgaonkar and Brothers, and V S Dempo. Sesa Goa’s lease at Advalpale in Bicholim expired in 2007, the report said. The other two mining giants’ leases at Quella in North Goa and Sanguem also expired in 2007. The companies, however, continued to extract ore.
Mining 60 metres from the Netravali Wildlife Sanctuary in South Goa also serves as an example. The forest department had refused licence renewal in 1991 in “the interest of wildlife management”.
But work was on in full swing on about 75 hectares of the mining area, the report said.
“Fresh excavations for…development work to open up mine were observed in the portion of a hillock. A number of trees were also found to have been logged.”
Shashi Kumar, chair of the investigating committee, recommended a notice to the owner, Kunda Gharse of Anvalimola Conserapeda Mines, for mining illegally and chopping trees without the government’s approval. Several mines, the report added, operate near the Bhagwan Mahaveer Wildlife Sanctuary in South Goa.
Why no action taken
Leader of opposition Manohar Parrikar said the report would make little difference. “The chief conservator of forests heads the forest department. In several cases, the mines do not have clearances from the department itself and yet the conservator has recommended cases to the department,” Parrikar said. “He should have acted against illegal miners on the spot. The report is a façade.” The director of mines, on the committee panel, could have acted immediately, he added. “One department will pass the buck to the other and illegal mining will continue.” But the chief minister said the report made it clear the state government was committed to end illegal mining in Goa. “We are not giving new mining leases in the entire Western Ghats,” Kamat said.
The committee was formed in the face of sustained pressure from non-profits and the opposition. They accused the Congress-led alliance of shielding illegal mining. Currently, about 100 mining tracts are leased for extraction of manganese, iron and bauxite ore, which is exported mostly to China and Japan. Illegal mining generates 18 per cent of the revenue.
UK council urged to prevent bauxite mining in Orissa
Press Trust of India / London August 17, 2009, 15:23 IST
The Leicestershire County Council has been urged to put pressure on mining major Vedanta Resources to stop a major project to mine bauxite from the Nyamgiri mountain in Orissa.
The council has invested 2.3 million pound in the company owned by the Indian-origin entrepreneur Anil Aggarwal.
In July, there were protests in London during the company’s annual general meeting (AGM) on grounds that mining bauxite would threaten the ecologically sensitive Nyamgiri mountain, which is a sacred site for the Kondh tribe.
ActionAid, a campaign group that coordinated the protests, has urged the council to act to ensure that the company drops its plans to create an open-pit mine Meredith Alexander, ActionAid's head of trade, said.
"Shareholders including Leicestershire County Council are investing in a mine that will destroy a community's way of life and irreversibly damage a unique environment. The council must ask Vedanta to withdraw from the project. The destruction of the Kondh's homeland is imminent. Shareholders have a final chance to refuse to allow their money to be used in this way," he said.
The council’s fund manager Colin Pratt said, "Under law, trustees have to act in the best interests of beneficiaries. Lower investment returns mean that more money has to be paid into the fund by the employers, and higher employer contributions will inevitably impact on council tax rises and/or cuts in service."
"The fund has a holding in Vedanta Resources that is valued at 2.3 million pound, which is 0.13 per cent of total fund assets. This holding was built up in April and May and is showing a 1 million profit against cost," he added.
Mining companies constituted about 10 per cent of the UK equity market and it would be impossible for the Leicestershire fund to avoid investment in the sector without taking an unduly large risk, he said further.
Rejecting claims by ActionAid, a Vedanta spokesman said, "The project will bring urgently needed and important benefits to the region, one of the most deprived in India. The Supreme Court of India, in its decision to give approval for the project, has taken into account the views of the community and the many benefits that the project will bring."
"We urge organisations to respect the decision of the legitimate authority in India, the world's largest democracy," the spokesperson said.
Consensus on coal block auction system
________________________________________
Auction system will motivate new players to develop the blocks more speedily.
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The broad consensus evolved at a Centre-State meeting on August 10, on the issue of introducing an auction system for allocating coal blocks, is likely to smoothen the passage of the amendment of the Mines and Minerals (Development and Regulations) (MMDR) Act, 1957, which is needed for bringing forth this system.
At the New Delhi meeting, the State governments underscored the importance of attractive and fair resettlement and rehabilitation packages for the project-affected families so that the process of land acquisition could be completed smoothly.
The States were also keen that the private sector coming through this route should make firm commitments on corporate social responsibility at the time of bidding itself. There was divergence of opinion on the issue of reserving the coal-bearing areas only for mining. The State governments felt that there were multiple demands on land for alternative uses and the priority would have to be determined having regard to local conditions and circumstances.
A very recent case that exemplifies this issue is the spat between the Bengal Aerotropolis Project and Coal India. The Rs. 10,000-crore airport-city project would block substantial coal reserves, a study done by the Central Mine Planning and Development Institute (CMPDI) has revealed.
Why auction
Under the Coal Mines (Nationalisation) Act, 1973, coal mining was mostly reserved for the public sector. However, through subsequent amendments, and following the liberalisation measures since 1991, captive mining for some specified end-uses was permitted.
Thus, at present, a company engaged in producing iron and steel, generating power, producing cement, coal gasification and coal liquefaction can carry on coal mining for captive consumption.
While state-owned entities too could carry on mining, the earlier restrictions imposed were removed through a liberal policy framework in 2001, which put state public sector enterprises on a par with Coal India. However, despite all these measures, coal-raising through these initiatives did not really come about.
A total of 229 blocks now under the production plan of CIL, or Singareni Coalfields Company (the joint venture between the Andhra Pradesh Government and Singareni Collieries) were identified and the mining dispensation was based on merits of individual cases through inter-ministerial and inter-governmental consultations.
Till May 2009, the Ministry has allocated 201 blocks with geological reserves of about 45 billion tonnes of coal to government and private sector companies for both captive and commercial mining. Of these, 97 blocks have been given to government companies with coal reserves of 27 billion tonnes while the private sector got 104 blocks with reserves of 18 billion tonnes.
However, so far, only 25 blocks have come into production with the progress in respect of the state PSUs being even less encouraging. The Parliamentary Committee felt that if coal blocks already allotted were not being developed as per the time-frame set by the Coal Ministry, then their allocation should automatically stand de-allocated and such coal blocks might be disposed of through the new policy initiative now being contemplated.
Arguing in favour of the auction route, the Planning Commission said that when they get the coal through auction, new players would have a more direct stake in premium they would have to pay by way of bid amount and this in turn would motivate them to develop the blocks more speedily.
The increased economic activity would also boost the states which could help by giving faster clearances according to existing rules.
INDRANI DUTTA
http://www.business-standard.com/india/news/uk-council-urged-to-prevent-bauxite-mining-in-orissa/70967/on
Corporate Round Up: Tata Chemicals, Gujarat NRE Coke
17 Aug 2009, 0632 hrs IST, ET Bureau
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The Rallis India scrip gained over 10% in the last three trading sessions to close at Rs 760.8 on Friday following the news that Tata Chemicals
would buy out stakes of other promoter group companies in Rallis. With this arrangement, Tata Chemicals will increase its stake in Rallis from the current 9.4% to 45.2%, thereby giving it the management control of Rallis.
Tata Chemicals’ board has approved to buy Tata Tea’s 24.52% stake in Rallis, 7.52% held by Tata Sons, 2.42% stake of Tata Investment and 1.35% stake of Ewart Investments at a price not exceeding Rs 850 per share. This will result in a maximum cash outgo of Rs 365 crore for Tata Chemicals, which was carrying Rs 990 crore of cash at the end of FY09. However, the other promoter group companies have not conveyed their approvals so far.
The asking price set by Tata Chemicals values Rallis India at a little above Rs 1,000 crore, around 10% higher than the latter’s current market capitalisation of Rs 911 crore. Although it’s difficult to evaluate the immediate operational benefit due to this transaction, the valuation appears fair for retail investors of Rallis India.
Since the transaction amounts to inter se transfer of shares among promoter group companies, Tata Chemicals need not come out with an open offer for Rallis India shareholders.
This transaction is the first step in the unification of the chemical businesses of the Tata Group. It will also create better co-ordination between the two companies, both of which have the same target customer, viz. the farmer. The group companies have long been sharing each other’s marketing infrastructure to increase customer reach.
The arrangement does not impact fundamentals of Rallis in a big way. However, considering this as an endorsement of the current valuation of Rallis India, long-term investors should continue to remain invested.
Mining expansion
Gujarat NRE Coke, the largest independent producer of low ash metallurgical coke, is slated to more than double its total annual mining capacity to 2.5 million tonnes. It is commissioning its longwall mining, a high-end mining process that increases the productivity of coal mining, at its Australian mine operated through its subsidiary called Gujarat NRE Mineral (GNML).
It produced only 0.18 million tonnes of coking coal from this mine in FY09 and this would increase almost ten-fold to 1.5-1 .7 million tonnes per annum. The coking coal available in these mines is of very high quality. The company also has one more mine called NRE No.1 in Australia, which currently produces 0.7 million tonnes of coking coal.
With half of the year being passed, the company would produce only 0.8-0 .9 million tonnes from this mine in FY10 and the entire 1.5 million tonnes from FY11 onwards. Hence the impact on its coke production volume will be minimal in FY10 but would be significant from FY11 onwards. The company’s total production volume of coking coal would be around 1.5 and 3 million tonnes for FY10 and FY11 respectively. The company is also increasing its coke making capacity, its main product, from 1 million tonnes to 1.25 million tonnes in the next one year. It means the overall impact on its topline will be marginal for FY10 but will be much higher from FY11.
The current commissioning is well in line with the company’s goal of achieving total annual mining capacity of 7 million tonnes of coking coal from ‘14. It has already spent around 300 million Australian dollars (AUD) for developing these mines and plans to spend another AUD 400 million in the next four years.
Fast forward
With the acquisition of AIG Systems and Solutions (AIGSS), Bangalore-based IT firm Mphasis has joined the likes of TCS and Wipro. Each of these Indian IT players has acquired the captive IT/BPO units of global financial institutions in the last three quarters.
This confirms a trend among Indian IT exporters of ensuring their future revenues via inorganic route at a time when organic growth faces challenges from declining global IT spends.
The AIGSS deal is of great importance to Mphasis in a way that it would help the latter in arresting a drop in its revenue from the banking and financial services andinsurance (BFSI) vertical. Its share of BFSI revenue dropped 400 basis points (bps) to 39% in the April ‘09 quarter from the previous quarter. AIGSS provides application development and maintenance services to companies in the AIG group worldwide. Its acquisition would increase Mphasis’ revenue from BFSI application services two-fold .
It is difficult to ascertain the financial impact of this deal since the deal size and other details about the size and profitability of AIGSS have not been disclosed. However, on the operational front, the acquisition is expected to add new competencies for Mphasis in the areas of retirement products, personal auto and global insurance products.
The takeover would increase Mphasis’ current application services team of over 11,500 by another 800 associates. The takeover would also help Mphasis strengthen the three-year old existing customer relationship with AIG. All this bodes well for the Indian IT exporter, which is a subsidiary of HP India, when looked against the backdrop of slowing revenue from new client accounts due to the economic downturn.
The stock of Mphasis has gained over 5% in the last two trading sessions after the deal was announced. At Friday’s close of Rs 528.4, the stock was traded at a trailing twelve month P/E multiple of 17. The valuation is steep when compared to the P/Es of other bigger IT companies. However, this does not take into account the accretion in the bottomline once the financials of AIGSS are consolidated with Mphasis.
(Contributed by Ramkrishna Kashelkar, Santanu
Mishra, and Ranjit Shinde)
Anil Agarwal's Big Bang Theory
Billionaire Anil Agarwal avoided aggressive expansion during the commodity boom. Now when rivals are licking their wounds, he begins his game
by Prince Mathews Thomas, T Surendar | Aug 17, 2009
The first move came out of the blue. In April 2007, Anil Agarwal, the scrap dealer-turned-metals billionaire who runs Vedanta Resources, paid $1 billion to buy Sesa Goa, an iron-ore company. By all accounts, it appeared like straying from its core business. Vedanta had always been known for copper, aluminium and zinc and this entry into iron ore sent confusing signals to investors. There was also this feeling that Agarwal may have overpaid for Sesa Goa, just to wean it away from rival suitors steel baron Lakshmi Mittal and the Mumbai-based A.V. Birla group. Vedanta’s stock plunged in the next two sessions of trade, reflecting investor disapproval.
The second move came in June 2009. Vedanta acquired another iron ore business in Goa, this time from V.S. Dempo. A name probably better known for football than iron ore, Dempo nevertheless was welcomed gleefully by Vedanta investors. The stock shot up in value. It was a striking contrast to their mood just two years earlier. It was a clear sign the investors were at last beginning to make sense of Agarwal’s game plan.
Anil Agarwal, the scrap dealer-turned-metals billionaire runs Vedanta Resources
Related
• 'We Are Sitting on the Tip of an Iceberg'
What had seemed a random acquisition at first glance was actually the first step in a calculated strategy being put in place by Agarwal. Tie in the two acquisitions and the picture becomes clear. Today, the mine-scape of Goa is being changed forever by Agarwal who is slowly but steadily taking over a dominant position there. His interest in iron-ore mining, which started at zero in 2007, is set to reach 50 million tonnes per year by 2012. And this is just one detail in a grand global plan that the shrewd businessman is unraveling.
Ask Anil Agarwal about it and he first underplays it: “I don’t look at the nitty gritty of business these days. I focus on the big picture.”
Nevertheless, for someone who claims to stay away from the details, Agarwal rattles them off pretty nicely. He wants to become the fifth largest metals and mining company in the world by 2012. He wants India to account for a tenth of all global production of copper, aluminium and zinc and his operations in the country to account for all that share. In iron ore, his latest passion, he wants to control 10 percent of the world’s reserves. His investment bill? Rs. 95,000 crore in the lightening span of three years. That’s Rs. 87 crore each day.
He talks as if these plans are already cast in stone and it is just a matter of execution. Then, what is he going to do as the group patriarch? Agarwal offers a dry laugh for a response. There is work to do, he says. “I am going to see to it that all my plans get executed by their deadlines,” he adds. In short, for the first time in nearly three years of thinking big, Agarwal is folding up his sleeves to get to work.
A Formidable Agenda
There is a lot of work — dirty work — to do. His companies have gained notoriety on charges of harming the environment. Most of his projects in India have been extremely controversial, delayed by green concerns and there has been a lot of mystery around the Vedanta brand name.
Agarwal will need to expand his bauxite mining operations in Orissa, which were started early this year after stormy negotiations. He will have to crank up some old iron ore mines, long given up as inefficient. He then has to sew up a pending deal with Asarco, the third largest copper maker in the US, and build power plants with a capacity of 11,000 megawatts. Finally, he has to negotiate a deal with the Indian government to sell its residual stake in Bharat Aluminium Company (Balco) and Hindustan Zinc (HZL), which he bought a few years ago
A typical businessman would have relied upon his deputies to execute his vision, but not Agarwal. He has padded up and come to the middle of action. The Big-Picture Man is looking at the details and taking spot decisions to speed up execution. And his decisions are making a difference in the energy levels of senior management as well as the rank and file.
Take the scene at Sesa Goa, for instance. For long, the company’s production has been stuck at about 10 million tonnes a year. All these years, its management had been saying that at best, it could be expanded to 12 million. Enter Agarwal and the equation changed. He gave them the mandate to increase the output to 25 million tonnes. When awe-struck managers asked him to explain how, he did so with a few touches of his own. He had paid a premium to buy the company and he won’t tolerate status quo. Sesa Goa’s practice of making only incremental capital expenditure and minor tinkering with mining capacity must go. He reportedly told them to take Rs. 500 crore and replace old equipment, even the ones in good, working condition. This eventually helped crank up production and made 25 million tonnes look like a realistic target. “Agarwal most often has simple solutions for big problems,” Sesa Goa’s managing director P.K. Mukherjee sums up. A similar boost with substantial investment is being given to Dempo’s facilities too.
The investment banker who advised Dempo on the sale says the facility passed on to good hands. “We had seen what Vedanta Resources had done with Sesa Goa within two years of acquiring it. They have brought aggression, increased production and retained the management,” says Ashim Bhuwania, vice president at Ambit Corporate Finance.
In earlier acquisitions like Balco and HZL too, Agarwal had done the unthinkable. He retired workers whose employment was guaranteed earlier by the state and increased production by more than 300 percent in under three years. Agarwal personally supervised the procurement and planning of capacity addition and the negotiations with the local government. Says a senior executive in Vedanta’s copper making arm Sterlite Industries, “His presence changes all equations.”
However, there are many glitches in the way. The Goan government has recently come down heavily on mining companies, saying that the fragile ecosystem of the state cannot bear further mining. Though mining employs a lot of the locals, citizens of the tourist haven have been against industries. Anil Agarwal’s plan to dig up the state may turn them against him.
Exploring Joburg’s mine dumps
Johannesburg artist Hermann Niebuhr documents Joburg's quickly-disappearing mine dumps in his exhibition of oil paintings called "Mine".
The exhibition opens on Wednesday 11 November 2009 at 6pm at the Gold of Africa Museum Gallery, AngloGold Ashanti Building in Newtown.
Johannesburg artist Hermann Niebuhr finds unlikely wonder in the Johannesburg mine dumps.
In his new series of oil paintings, "Mine", Niebuhr documents Joburg's mine dumps and finds three major themes: a landscape that refuses to remember itself; a city built on fate and the forces of a gold rush; and the paradox of poisonous beauty - the mine dumps may look like mountains of gold dust but their bleached appearance is actually the result of the toxic process of gold extraction.
The mine dumps are disappearing, cleared to recycle their minerals and to open new spaces for development. Landmarks that people have known for years will be gone - but since mine dumps have no names, they will not be commemorated. Niebuhr finds a certain pathos in their disappearance.
Johannesburg would not exist but for the gold mines, and the dumps are their remnants. Niebuhr says, "That's why the mine dumps are so specifically Joburg: they are man-made, iconic, and represent the reasons we are here."
Last, Niebuhr says he has been drawn to the mine dumps despite their toxicity. "I've climbed them at dawn and at sunset," and he keeps coming back for more.
Using the Top Star drive-in cinema as a central point, he has been documenting the mine dumps from Randfontein on the West Rand to Boksburg on the East.
Born here, Niebuhr has been painting Johannesburg for nearly a decade. Working from his studio in Fordsburg, he makes cityscapes and urban portraits to capture the flux of decay and growth which so characterise Joburg, and "Mine" is his latest statement on a city he considers truly his.
Northam to raise funds for new mine
CHARLOTTE MATHEWS Published: 2009/08/17 06:39:05 AM
NORTHAM Platinum, which is planning to develop a substantial new platinum mine at Booysendal on the eastern limb of the Bushveld complex, was likely to finance it through a combination of its own cash, a rights issue and short- to medium-term debt, CEO Glyn Lewis said on Friday.
He said he could not give details of the amount of money needed, but the rights issue would probably occur ahead of Mvelaphanda Resources ’ unbundling of its stake in Northam, which was due to be completed by March.
The feasibility study on Booysendal would be finalised next month, but further work had to be done on the economics and design of the project before Lewis could give details of costs and the date of first production. Power and water supply to the site had been secured and construction of infrastructure would begin early next year.
Booysendal would provide Northam with a second, shallower mine, reducing the operational risk inherent in having only one mine, Zondereinde.
Zondereinde, unlike some other platinum complexes in SA, was cash-positive in the past year, and expected to remain so in the next year, Lewis said.
In the year to June, Northam’s revenue dropped 18% to R3,2bn compared with last year, reflecting weaker prices for its basket of platinum group metals, offset by a 21,7% increase in sales volumes to 333159oz.
The cost of sales rose 47,2% to R2,4bn because of higher volumes, the purchase of more lower-margin concentrate from third parties, and a 14% rise in unit costs owing to pressure on prices of power, water, steel, chemicals and labour.
Because of its looming commitments on Booysendal, Northam has increased its dividend cover. It declared a dividend of 78c for the year compared with 330c last year, after a 73% drop in headline earnings to 168,6c a share.
Imara SP Reid analyst Steve Meintjes said Northam’s results were reasonably good under the circumstances . He did not consider the increase in unit costs excessive as all SA’s mines had faced challenges in the past year from rising prices of steel and electricity.
At the end of June, Northam held R921m in cash. It spent R330m on capital projects last year, mainly on its 18-level deepening project, metallurgical plants and routine items, and would spend R270m in the next financial year, of which about a third would be on the level-18 project.
Lewis said after the volatility and uncertainty in markets last year, Northam was hopeful the early signs of improvement in demand for platinum would continue. Demand from the motor catalyst market was recovering, while jewellery markets had been resilient, with strong sales from China and Japan so far this year. Investment in exchange-traded funds had remained substantial.
Though the picture from markets was mixed, there were pockets of renewed demand , he said.
£26,000 to improve ex-mining village
Part of the former pit site at Allerton Bywater
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Published Date:
17 August 2009
By David Marsh
Community projects in the former mining village of Allerton Bywater are to receive a £26,000 boost.
The schemes include improvements to the village's allotments, where there will be changes to fencing to stop cars parking on a grassed area.
Kitchens at the Old School, which provide childcare facilities, will be upgraded and Allerton Bywater Rugby Club will get money for entrance gates, fencing around the pitch and floodlighting.
Coun Andrew Carter, executive member for development and regeneration, said: "These community projects and clubs, currently running in Allerton Bywater, already have a hugely positive impact on the local community and give a great deal back to the area."
As part of legal agreements attached to planning approvals in the village, a £500,000 community initiative fund was created in 2002.
There is £270,721 remaining which has to be spent by 2017.
Senate committee to probe farm mining bid
By Fidelis Rego
Posted Mon Aug 17, 2009 8:44am AEST
Updated Mon Aug 17, 2009 8:43am AEST
• Map: Toowoomba 4350
A Senate committee will investigate a controversial mining application on farming land in northern New South Wales and southern Queensland.
Farmers on the Liverpool Plains and parts of the Darling Downs are campaigning against mining developments on agricultural land.
NSW Nationals' Senator John Williams put forward the motion that led to the investigation.
He says while mining applications are state issues, the investigation is still relevant.
"What we're doing with this committee is actually forcing Labor senators up there because they have to be up there for a quorum for the committee," he said.
"So it's one way to make the other side of politics, those in the Government, actually get out there and see this agricultural land that we believe should be protected forever for farming."
Senator Williams says he would like the Federal Government to create "national farm areas" to protect land from mining developments.
"We have national parks, well national farms would be a declaration on areas where that land can only be used for farming," he said.
"It can't be planted down to trees, it can't be mined, it can't be disturbed in any way.
"I'd like to see some of the prime agricultural land in Australia be declared national farms so that land is protected."
African Copper posts H1 profit and restarts Botswana mine
Monday, 17 Aug 2009
Reuters reported that African Copper Plc posted a H1 profit aided by a reversal of impairment and said it restarted the operations at its mine in Botswana and was confident about the future sending its shares up as much as 21% in early trade.
The AIM listed miner also said it appointed Mr David Rodier as its new chairman.
African Copper which had put its Mowana mine on care and maintenance in January pending completion of certain financing talks said that it had received USD 41 million in funding from mining investment firm Zambia Copper Investments Limited. The company said that the recapitalization would help African Copper's operations to grow to their full potential.
Mr Chris Fredericks CEO of said in a statement that "Following the ZCI funded recapitalization; we look forward to the monetization of our reserves base through near term production and sales. Production is planned to commence by the end of August 2009."
For the 6 months ended June 30th 2009, the company posted a pretax profit of GBP 27.7 million as compared with a loss of GBP 2.6 million in 2008.
The company said that about GBP 29.6 million of previous impairment costs recognized in 2008 were written back to its balance sheet.
(Sourced from Reuters)
No job losses expected in Mudgee mining takeover
Posted 8 hours 36 minutes ago
Updated 8 hours 37 minutes ago
• Map: Mudgee 2850
A mining analyst says it is "unlikely" a takeover of a company which owns a Mudgee-district mining venture will result in job losses.
Yanzhou Coal has made a $16.95 per share cash offer for Felix Resources which owns the Moolarben coal project that is under construction.
The board of Felix has recommended acceptance subject to a range of approvals, and shareholders are expected to vote on the takeover later this year.
The head of research at brokerage firm Fat Prophets, Gavin Wendt, says it is unlikely to affect local jobs.
"There may be some trepidation that work practices might change and that sort of thing, well that won't be the case," he said.
"Any mine that operates in Australia has to operate in accordance with Australian work practices etcetera, so I don't think on the ground there's going to be any change and I don't think there's any issue with any of these mines being closed down."
Mr Wendt says he expects the Chinese company to export the coal for use in China's growing steel industry.
"I would think that there is going to be more Chinese involvement in the coal sector here and that is going to present a problem for the Government," he said.
"This deal will have to undergo a Foreign Investment Review Board approval and there is going to be the issue of whether we want to see these deposits, these sort of resources falling into foreign hands."
Other News
Two Maharashtra tribal villages get community rights
Two tribal villages in Gadchriroli district got community rights over forest around them under the new tribal act known as Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forests) Act on Independence Day, here.
The villages have been identified as Mendha-Lekha under Dhanora taluka and Merda near Pategaon, both in Naxal infested Gadchiroli district, official sources said.
Maharashtra Food and Civil Supplies Minister Ramesh Bang announced the decision during Independence Day celebrations.
With tribal act, both the villages Mendha-Lekha and Marda will have legal rights to manage and utilise about 1800 and 880 hectares of land respectively.
The tribal act provision allows the village community access to cattle fodder, collection and storage of minor forest produce, resource management and disposal, the sources said.
Dugwell Recharge Scheme to be implemented at a cost of Rs. 1798.71 crores
________________________________________
16:1 IST
The State sector scheme of ‘Artificial Recharge to Ground Water through Dugwells’ has been formulated by the Ministry of Water Resources. It is being implemented in 1180 over-exploited, critical and semi-critical blocks of hard rock areas in the seven States namely Andhra Pradesh, Maharashtra, Karnataka, Rajasthan, Tamil Nadu, Gujarat and Madhya Pradesh at an estimated cost of Rs. 1798.71 crores including the subsiding component of Rs. 1499.27 crore.
The details of dugwells being covered are given below:
State Total no. of Dugwells
Andhra Pradesh 737436
Gujarat 558536
Karnataka 154493
Maharashtra 328322
Madhya Pradesh 360088
Rajasthan 1065051
Tamil Nadu 1250730
Grand Total 4454656
The funding of the Scheme is being done by Ministry of Finance through NABARD. It is being implemented on ‘Cluster approach basis’ in a time span of three years from 2007-2010. A National Programme Monitoring Committee (NPMC) has been set up by the Ministry of Water Resources for monitoring the progress of the Scheme.
Total number of irrigation dugwells proposed for recharge is 4.45 million. Of which 2.72 million dugwells owned by small and marginal farmers and 1.73 million dugwells owned by other farmers. The average cost of recharge structure per well is Rs. 4000 which varies from Rs. 3600 as in Maharashtra to Rs. 5700 as in Andhra Pradesh. The beneficiaries would be farmers having own wells in their agricultural land.
SK/BS
Enforcement of important Environmental Laws
________________________________________
17:6 IST
Backgrounder
A number of environmental and forestry and wildlife related statutes have been enacted from time to time to address the challenges of environment, forests and wildlife management .The Environment (Protection) Act, 1986 is an umbrella legislation under which various rules and notifications have been framed and issued to take care of the different dimensions of environment challenges. The review of the statutes and rules is undertaken by this Ministry in consultation with various stakeholders from time to time depending on the experience gained in the course of their implementation. The coming National Conference of Ministers of Environment and Forests will review the enforcement of the environmental laws. There are main nine important Environmental Acts.
These statutes and rules are being enforced through the Central Government, State Government, Central and State Pollution Control Boards, National Biodiversity Authority and State Biodiversity Boards.
The Water (Prevention and Control of Pollution) Act, 1974 represented India’s first attempts to comprehensively deal with water pollution issues and creation of institutional set in the country. The Act prohibits the discharge of pollutants into water bodies beyond a given standard, and lays down penalties for non-compliance. The Act was amended in 1988 to confirm closely to the provisions of the EPA, 1986. It set up the Central Pollution Control board(CPCB) , which lays down standards for the prevention and control of water pollution. At the state level, the State Pollution Control Board function under the direction of the CPCB and the State government.
The Water (Prevention and Control of Polltion) Cess Act, 1997 provides for a levy and collection of a cess on water consumed by industries and local authorities. It aims at augmenting the resources of central and state boards for prevention and control of water pollution. Following this Act, the Water (Prevention and Control of Pollution ) Cess Rules were formulated in 1978 for defining standards and indications for all kind of and location of meters that every consumer of water is required to install.
The Air ( Prevention and Control of Pollution) Act,1981 seeks to combat air pollution by prohibiting the use of polluting fuels and substances, as well as by regulating appliances that gives rise to air pollution. Under the Act, establishing or operating of any industrial plant in the pollution control area requires consent from state boards. The boards test the air in air pollution control areas, inspect pollution control equipment, and manufacturing processes. The board has power to cancel consent on non-fulfillment of the conditions.
The Environment (Protection) Act,1986 is an umbrella legislation designed to provide a framework for the co-ordination of central and state authorities established under the water (Prevention and Control) Act,1974 and Air (Prevention and Control ) Act,1981. Under this Act, the Central government is empowered to take measures necessary to protect and improve the quality of the environment by setting standards for emissions and discharges; regulating the location of industries; management of hazardous wastes, and protection of public health and welfare. Notifications under the EPA for the protection of ecologically sensitive areas or guidelines are issued time to time.
The Public Liability Insurance Act (PLIA), 1991 covers accidents involving hazardous substances and insurances where death or injury results from an accident. The Act makes owner liable to provide relief as specified in the Schedule of the Act. The PLIA was amended in 1992, and the Central Government was authorized to establish the Environment Relief Fund, for making relief payments.
The National Appellate Authority Act,1997 provided for the establishment of a National Environment Appellate Authority to hear appeals with respect to restriction of areas in which any industry operation or process or class of industries, operations or processes could not carry out or would be allowed to carry out subject to certain safeguards under the Environment (Protection) Act,1986.
The Biological diversity Act, 2002 was enacted under the United Nations Convention on Biological Diversity. It is to “provide for the conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of the benefits arising out of the sued of biological resources, knowledge and for matters connected therewith or incidental thereto.”
The Wildlife (Protection) Act (WPA),1972 provides protection to listed flora and fauna and establishes a network of ecologically important protected areas. It empowers the central and state governments to declare any area a wildlife sanctuary, national park or closed area. The Act prohibits hunting of animals except with permission of authorized officer when animal has become dangerous to human life or property or so disabled or diseased as to be beyond recovery.
The forest (Conservation) Act,1980was adopted to protect and conserve forests. The Act restricts the power of the state in respect of de-reservation of forests and use of forestland for non-forest purposes.
KP /
Drought: officials told to make alternative plans
STAFF REPORTER
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As the district continues to experience the dry spell, Collector Gopalakrishna Dwivedi ordered the officials concerned to make out alternative plans to mitigate the impact of drought and to set up control rooms in the offices of Agriculture, Horticulture, Irrigation, Medical and Health Departments and revenue divisional offices to extend necessary help to the needy. Special officers were appointed for 26 mandals to tackle drought. Control rooms have to be opened in Rural Water Supply and MPDO offices in the mandals hit by drought.
The emphasis is on drinking water and irrigation facilities and the National Rural Employment Guarantee Scheme (NREGS) which helps prevent migration by providing wage employment to the distressed people.
It has to be ensured that every person seeking employment under NREGS got it. The officials of Civil Supplies Department have been ordered to keep a close watch on the prices of essential commodities which had a spurt in the recent times.
The Agriculture and Irrigation Departments have to make coordinated efforts to take proper care of the sowing operations which have almost been completed throughout the district.
Minimum water supply has to be maintained to the agricultural fields while the farmers got the necessary inputs so that they could carry out their field works without any hitch.
Drought looms large over Andhra
K Rajani Kanth & Ch Prashanth Reddy / Hyderabad August 17, 2009, 1:16 IST
State govt hopes for some wet respite in next fortnight, begins fallback relief
Also Read
For Golla Buddanna, 65, a farmer in Sankireddipalli village in Kotta Kota Mandal of Mahaboobnagar district, hanging on to his 10 acres of dry land and waiting for a buyer has become a part of his daily routine. However, there are hardly any takers for his land, as the semi-arid area has been witnessing erratic rainfall and overexploitation of the meagre groundwater resources.
“While last year was much better, the situation this kharif season is worse, as we still have no rainfall and our borewells have completely dried up. While the cotton seeds didn’t even germinate, the castor crop was half sprouted, leaving me a loss of Rs 20,000. The land is not even suitable for growing forage crop. With milking now being my main cash flow, I had left the castor crop for my buffalo herd to graze,” says Buddanna.
He is one of the 1,800 farmers in Sankireddipalli hit by the drought conditions, throwing them into a debt trap. The village, which has 700 acres of wet land and 2,000 acres of dry land, has a lift irrigation canal, constructed at a cost of Rs 8.13 crore to bring 2,131 acres of ayacut under cultivation.
“The canal dried up much before the groundwater resources depleted. Almost all the farmers had abandoned farming this year and now barely 85 acres in the village is under paddy, jowar, red gram and castor cultivation. Many of these farmers are carrying the debts of the previous years and had borrowed more for this kharif season. About 800 farmers migrated to Hyderabad, Karnataka and Maharashtra to find jobs to support their families and re-pay debts, while some, along with their cattle, migrated to the Jurala irrigation project area in search of greener pastures,” says Sankireddipalli village head, S Damodar Goud.
Things are no different for the farmers of Palem, a 1,000-acre revenue village in the same mandal. However, the implementation of the National Rural Employment Guarantee Scheme (NREGS) has come as a boon for them during these turbulent times.
Says Ramulu, owner of an eight-acre paddy field and one of the 280 farmers now engaged in land levelling, jungle clearance and land development on 300 acres under the NREGS: “Though the Rs 100 that I earn now from the NREG scheme every day is enough to support my family, I am finding it difficult to pay the Rs 300-per month fee of my two children who are studying in a private school in Kotha Peta. Now I am planning to admit them in a government school.”
The situation is much worse in Shankaraiah Palli in Jadcherla mandal of the district, where about 1,500 acres of agricultural land was devastated due to lack of rainfall and the prolonged ‘summer-like’ weather this kharif. Devili, owner of four acre, was abandoned by her two sons, who migrated to Hyderabad to work as daily labourers in construction projects. Now, her only livelihood is agriculture.
“I made a profit of Rs 20,000 in the 2008 kharif season. This year, I sowed jowar, maize and cotton in my four acres. Bores had dried up already and with the lack of rainfall and record temperatures, the entire crop was scorched dry. I had borrowed Rs 25,000 from a money lender to invest in seeds, fertilisers and to hire a tractor to till the land. Now, I don’t know how to repay that debt,” she laments.
After four years of bountiful rainfall, drought is looming large over Andhra Pradesh, with 1,028 out of the 1,128 mandals and 21 of the 23 districts in the state receiving 40 to 50 per cent deficient rainfall during the current kharif season.
Till August 10, according to official estimates, the state had received an average rainfall of 155.8 mm, as against the normal rainfall of 352.8 mm. While 11 districts received deficient rainfall, 10 others received scanty rainfall.
Consequently, the area under crops sown so far has drastically declined to 3.8 million hectares (mh) from a normal of 5.6 mh and against last year’s 5.15 mh. Compared with last year’s kharif season, the area under paddy declined by 273,000 hectares to 723,000 hectares. East Godavari, West Godavari and Krishna districts, considered rice bowls, have reported deficit rainfall ranging from 40 to 65 per cent.
More than the paddy farmers, the groundnut cultivators seem to have been worst affected by the prolonged dry spell. Groundnut has been sown only in 457,000 hectares in the current season, against 1.2 mh in the same period last year.
However, Chief Minister Y S Rajasekhara Reddy is yet to declare the state as drought-hit. He is hoping that the situation might change in the next fortnight, when the state normally receives the second spell of rains under the South-West monsoon. “Drought will be declared in the state, if there are no rains by the end of August,” he said.
Nevertheless, he announced a contingency plan that envisages sowing of alternative crops, organising cattle camps and providing employment to the people in drought-affected areas under the NREGS.
The chief minister said Rs 7,000 crore would be spent under NREGS to provide employment. Special officers would be appointed for undertaking drought relief measures in each affected mandal and revenue divisional officers would oversee payment of wages to NREGS beneficiaries.
The relief measures announced by the state government include sanction of Rs 35 crore for promoting the cultivation of alternative crops like maize, jowar, castor, sunflower and redgram in about 1.1 mh. This apart, Rs 5 crore would be given for vegetable cultivation, Rs 7.95 crore for subsidised seed to farmers for growing fodder and Rs 3.5 crore for setting up cattle camps in 10 districts.
Eco-Clubs in India
________________________________________
17:2 IST
Eco-clubs are functioning in the country in large numbers. They undertake various activities. 111609 Eco-clubs were provided financial assistance during 2008-09. They are:
i. Organise seminars, debates, lectures and popular talks on environmental issues in the school,
ii. Field visits to environmentally important sites including polluted and degraded sites, wildlife parks etc.
iii. Organise rallies, marches, human chains, and street theatre at public places with a view to spread environmental awareness.
iv. Action based activities like tree plantation, cleanliness drives both within and outside the school campus.
v. Grow kitchen gardens, maintain vermi-composting pits, construct water-harvesting structures in school, practice paper re-cycling etc.
vi. Prepare inventories of polluting sources and forward it to enforcement agencies.
vii. Organise awareness programmes against defecation in public places, pasting posters in public places and to propagate personal hygiene habits like washing hands before meals etc.
viii. Maintenance of public places like parks, gardens both within and outside the school campus.
ix. Mobilise action against environmentally unsound practices like garbage disposal in unauthorised places, unsafe disposal of hospital waste etc.
x. Organise seminars, debates, lectures and popular talks on environmental issues in the school,
xi. Field visits to environmentally important sites including polluted and degraded sites, wildlife parks etc.
xii. Organise rallies, marches, human chains, and street theatre at public places with a view to spread environmental awareness.
xiii. Action based activities like tree plantation, cleanliness drives both within and outside the school campus.
xiv. Grow kitchen gardens, maintain vermi-composting pits, construct water-harvesting structures in school, practice paper re-cycling etc.
xv. Prepare inventories of polluting sources and forward it to enforcement agencies.
xvi. Organise awareness programmes against defecation in public places, pasting posters in public places and to propagate personal hygiene habits like washing hands before meals etc.
xvii. Maintenance of public places like parks, gardens both within and outside the school campus.
xviii. Mobilise action against environmentally unsound practices like garbage disposal in unauthorised places, unsafe disposal of hospital waste etc.
A statement showing State-wise breakup of the Eco-clubs supported is enclosed at Annexure – I.The State-wise details of financial assistance provided to these clubs during last three years and the current year are given in the statement at Annexure – II. A statement providing details of the activities undertaken by the Eco-clubs is enclosed at Annexure – III.
Annexure - I
Financial Assistance Provided to Eco-Clubs During Last Three Years and Current year
States/UTs No. of Eco-clubs
2008-09
Andaman & Nicobar Islands (UT) 346
Andhra Pradesh 5750
Assam (NE) 4695
Bihar 8473
Chandigarh (UT) 115
Chhattisgarh 3932
Delhi (NCT) 2000
Gujarat 6500
Haryana 5000
Himachal Pradesh 3000
Jammu & Kashmir 5500
Karnataka 8000
Kerala 3500
Maharashtra 8898
Madhya Pradesh 12000
Orissa 7500
Puducherry (UT) 550
Punjab 5000
Rajasthan 8000
Tamil Nadu 7500
Tripura (NE) 600
West Bengal 4750
Total 111609
Annexure - II
State-Wise Details of Financial Assistance Provided to Eco-Clubs During Last Three Years and Current Year
STATE/UT 2006-07 2007-08 2008-09 2009-10
Amount (Rs.) Amount (Rs.) Amount (Rs.) Amount (Rs.)
Andhra Pradesh 15466250 15697500 15697500 ---------
Andaman & Nicobar Islands (UT) --------- --------- 896112 ---------
Arunachal Pradesh (NE) 1620929 --------- --------- ---------
Assam (NE) --------- --------- 12313583 ---------
Bihar --------- 19598456 23080000 ---------
Chhattisgarh 10715207 10741500 10741500 ---------
Chandigarh (UT) 303338 322750 324529 ---------
Delhi (NCT) 4237079 4066733 4887587 ---------
Goa 1357625 1323190 --------- ---------
Gujarat 16750000 17712500 17745000 ---------
Haryana 13242978 --------- 13242978 ---------
Himachal Pradesh 4391975 --------- 7877425 ---------
Jammu & Kashmir --------- --------- 14300000 ---------
Karnataka --------- 23189957 18648000 ---------
Kerala 9119252 --------- 9439500 9447375
Madhya Pradesh 20160000 32160000 32760000 ---------
Maharashtra 23730000 23253249 23635348 ---------
Manipur (NE) 3663018 3663018 --------- ---------
Mizoram (NE) 3128200 3447500 --------- ---------
Nagaland (NE) 5652500 5247500 --------- 539500
Orissa 16100000 --------- 20275000 ---------
Puducherry (UT) --------- 1477270 1519640 ---------
Punjab 11390000 13552500 13650000 ---------
Rajasthan 21440000 21440000 21725002 ---------
Tamil Nadu 20099609 20107802 20327027 ---------
Tripura (NE) 1680000 1680000 1680000 ---------
Uttarakhand --------- 5111829 --------- ---------
Uttar Pradesh 9683084 --------- --------- ---------
West Bengal 12730000 12350000 13585000 ---------
Total 226661044 236143254 298350731 9986875
**********
KP/
Science versus drought
Henry I. Miller / WSJ
News that India may suffer a weaker than normal monsoon this year is raising concerns about crop yields and food supply. As worrying as these reports are, however, this is only a short-term element of a much bigger problem with the availability of water in the country. Even when the rains do come, India’s water usage will still be at unsustainable levels. Better crop plants that use water more efficiently could be a big part of the solution—if only bureaucrats and activists would get out of the way.
India is the world’s second largest producer of cotton, the thirstiest of crops: It takes 11,000 litres of water to produce a single kilogram. In just one example of the consequences, consumption from irrigation and other human uses is depleting groundwater in north-western India despite consistent rainfall levels, according to an article published in the British journal Nature.
The results of this research should get policymakers to focus on how water is being used. The introduction of plants that grow with less water would allow more to be freed up for other uses. Plant biologists have identified genes regulating water utilization that can be transferred into important crop plants. Some modifications allow plants to grow with less or lower-quality water.
Pest- and disease-resistant strains also indirectly help water efficiency. Because much of the loss to insects and diseases occurs after the plants are fully grown—that is, after most of the water required to grow a crop has already been applied—the use of crop varieties that experience lower post-harvest losses in yield means that the farming and irrigation of fewer plants can produce the same total amount of food. Around 13 million farmers in at least 25 countries are already using genetically modified crop varieties to produce higher yields with lower inputs and reduced impact on the environment. In 2008, India ranked fourth in the world in cultivation of genetically modified crops, with 7.6 million ha.
But research and development are being hampered by resistance from activists and discouraged by governmental over-regulation. There are at least a dozen vocal and radical activist groups around the world opposed to this kind of technology. They have concocted tales in developing countries about genetically modified crops causing homosexuality, impotence, illnesses such as HIV/AIDS and even baldness. One of the most vocal activists is New Delhi-based Vandana Shiva, who denies not only the manifest benefits and potential of genetically modified crops, but even derides the 20th century’s stellar Green Revolution as having inflicted violence on the environment.
This pressure both encourages over-regulation in response to questionable science and offers cover to those who want to over-regulate these crops for other reasons. The UN agency that sets international food standards has established requirements that are hugely expensive—and that could not be met by any food derived from conventionally modified plants. The Cartagena “biosafety protocol”, crafted under the aegis of the UN Convention on Biological Diversity, has created unscientific and burdensome regulations of field trials and transport of genetically modified organisms.
Meanwhile, governments interested in protecting their agricultural sectors from foreign competition are all too happy to use spurious fears over genetically modified crops to erect trade barriers. Witness the EU’s unscientific, protectionist restrictions on the import of genetically modified products.
Water scarcity has the potential to destabilize industrialized and developing countries alike. It hinders economic development; excessive water extraction lowers ground levels and exacerbates rising sea levels; and poor water quality makes populations vulnerable to water-related diseases. Especially during drought conditions, even a small reduction in the use of water for irrigation could result in huge benefits.
Some of the planet’s biggest drought fears may be in India today, but no one will be immune to water worries in the future. It’s essential that bureaucrats and activists stop blocking technologies that can give us more crop for the drop.
THE WALL STREET JOURNAL
Edited excerpts. Henry I. Miller is a fellow at Stanford University’s Hoover Institution and author of The Frankenfood Myth (2004). Comments are welcome at otherviews@livemint.com
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