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Subject: PR: Victory Celebrations At Maheshwar Dam Site
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PRESS RELEASE
Tuesday, February 3, 1997
Patrick McCully
Campaigns Director
(510) 848-1155

Protesters Celebrate Victory At Maheshwar Dam
State Government Agrees to Halt Construction, Review Project

Thousands of Indian villagers are today gathering on the banks of the
Narmada River in central India to celebrate victory in their year-long
campaign against the Maheshwar hydropower dam. The Madhya Pradesh state
government has suspended project construction pending a complete review of
its costs, benefits, and environmental and social impacts.

Late in the night of January 30, the state's Deputy Chief Minister gave the
several thousand protesters at the construction site written assurances
that work on the dam would be suspended. The protesters, led by the Narmada
Bachao Andolan (NBA - Save the Narmada Movement), then called off their
20-day occupation of the Maheshwar site and a five-day-old indefinite fast.

One of the six fasters, NBA activist Mr. Alok Agarwaal, was admitted to
hospital in a critical condition after stopping his fast. He is now said to
be recovering rapidly. The other fasters were local villagers and Mr
Sitarambhai from the submergence area of the infamous Sardar Sarovar Dam
downstream of Maheshwar. Construction on Sardar Sarovar has been suspended
since January 1995.

Excavations for the foundations of Maheshwar Dam began last year. Work has
been stopped since January 21 when 10,000 villagers, the majority of them
women, invaded the construction site. The dam would submerge some 2,500
acres of land, affecting around 2,200 families in 61 villages.

The concession to build and operate the 400 megawatt Maheshwar Dam was
given to S. Kumars, an Indian textile and tires company with no prior
experience in dam projects. Financing was being sought from private
investors in India and abroad. Swiss-Swedish engineering giant ABB and
German firm Siemens were to supply generating equipment. Maheshwar would
have been the first privately financed large hydro project in India.

NBA leader Ms. Medha Patkar says:

"In 1993 we threw the World Bank out of the Sardar Sarovar Dam, now we have
thrown the private companies out of Maheshwar. This struggle has been led
by women and financed by the farmers of the
valley. This will send a strong message to Indian and foreign corporations
that privatization will not be accepted on their terms. The people will
decide how development proceeds in the Narmada Valley."

Ms. Patkar and Mr. Agarwaal will both be members of the Task Force to
review Maheshwar, along with experts on alternative energy generation and
water management, and Madhya Pradesh government officials. The Task Force
was formed in late December to prepare a framework for redesigning the
entire Narmada Valley Development Project (NVDP). The NVDP is a gargantuan
plan to build 30 major, 135 medium and 3000 small dams on the Narmada River
and its tributaries. The Narmada is India's longest westward-flowing river.

Medha Patkar says:

"The Task Force will give priority to reviewing Maheshwar. This will mark
the beginning of a basin-wide process of developing alternatives to the
Narmada Valley Development Project, village by village, watershed by
watershed, with the full participation of local people."

Maheshwar is the second big hydro project embarrassment for ABB in the last
six months. In September, ABB lost its largest ever contract - a $5.4
billion agreement to build Malaysia's now indefinitely postponed Bakun Dam.


Patrick McCully, Campaigns Director of International Rivers Network, says:

"ABB should get out of the hydropower business now and save itself further
embarrassment and financial loss. IRN and other dam critics warned them
that Bakun would collapse and we warned them about Maheshwar. Maybe now
they will start to listen to dam opponents."

ENDS

For more information:
Patrick McCully, IRN, Berkeley, California +1 510 848 1155
Medha Patkar/Shripad Dharmadhikary, NBA, India +91 265 382232

INTERNATIONAL RIVERS NETWORK
1847 Berkeley Way, Berkeley, California 94703, USA
Tel: (510) 848-1155 / Fax: (510) 848-1008 / irn@irn.org / www.irn.org



