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dam-l PR: Authorities Spreading Misinformation on Maheshwar Report - New CBA Needed
Press Release 4 Nov. 1998
- TASK FORCE REPORT ON MAHESHWAR HYDROPOWER PROJECT CALLS FOR A NEW COST
BENEFIT ANALYSIS :
- WORK NOT TO START TILL THIS AND OTHER CONDITIONS
FULFILLED :
- S.KUMARS AND MPEB MAKING MISLEADING STATEMENTS TO GET
FINANCIAL CLOSURE
The Task Force appointed by the Government of Madhya Pradesh to
review and suggest alternatives for the Narmada Valley Projects in
Madhya Pradesh has submitted its Final Draft Report on the Maheshwar
Hydropower Project to the Government. This report has called for, inter
alia, a fresh cost benefit analysis of the project, including the
alternatives, and has said that work should not begin unless these and
other conditions are fulfilled.
The statements appearing in the press recently, issued by S.Kumars, the
project promoters and Madhya Pradesh Electricity Board (MPEB) implying
that the Task Force has given clearance to the Project and that the work
will start soon, are misleading, and made with the possible intention of
securing financial closure, which the project still has not been able to
secure.
The details are as below.
The Report of the Task Force on Maheshwar was submitted by its Chair as
a "Draft Final" report to the Chief Minister of Madhya Pradesh in the
last week of October 1998. Even though it is called a "Draft Report" the
Report was a Final report in the sense that it has gone through at least
two rounds of comments by all the members. Only fine tuning of the
report has to be done. Also, the Task Force's Report on rest of the
Narmada Valley is still to be submitted, and the Maheshwar report
would be integrated into it. For all practical purposes, however, this
is the Final report.
MAIN RECOMMENDATIONS
The recommendations of the Task Force are given below.
"(In the light of the preceding discussion,) the task force recommends
that the following steps be taken before considering resumption of work
of Maheshwar Project:
1. Cost benefit analysis be computed again on the lines suggested above.
2. If the fresh computation also shows greater benefits than cost, a
comprehensive plan for rehabilitation programme strictly following the
rehabilitation policy as being demanded by the Government of M.P. for
Sardar Sarovar from the Government of Gujarat be prepared in a
participatory manner by involving the representatives nominated by the
affected families;
3. This comprehensive plan should specifically indicate the feasibility
of R&R in accordance with the policy particularly availability of land
for allotment to the oustees and resettlement of the villages as
communities.
4. If the model R&R plan is found the feasible implementation be
initiated in an exemplary manner as recommended above with full
participation of the affected families.
5. The rehabilitation and resettlement must be done in such a manner
that rehabilitation and resettlement of families likely to be affected
during monsoon of any forthcoming year should be settled definitely,
fully, finally and satisfactorily by 31st December of the preceding year
without compromise on R&R policy approved.
6. All the conditions imposed by the Ministry of Environment and Forest,
Government of India while giving clearance of the project be complied
with both in letter and spirit for monitoring which an effective
mechanism be evolved.
Only after the above steps are taken, it would be possible to go ahead
with construction of the Maheshwar Project which the task force feels
has more modest submergence and displacement compared to many other
projects."
In the Report, a detailed discussion on the alternatives has been
presented, and the new cost benefits analysis to be computed would have
to include an assessment and comparison of all the alternatives.
A most serious finding of the Task Force was that :
"(Hence,) we came to the conclusion that at present adequate land area
has not been identified to enable allotment to all affected families".
and,
"It was the stand of many members that there is no comprehensive plan of
R&R prepared for the Maheshwar Project. The representatives of the MPEB
also agreed that while there is some plan, it is not a comprehensive
plan for rehabilitation of all the affected families as per the
rehabilitation policy."
It may be noted that the Project authorities are claiming that there is
a full plan, and that land is available. Also important to note is that
MPEB is the agency contracted by the project to undertake the
rehabilitation.
NBA STAND VINDICATED
These recommendations of the Task Force clear vindicate all that the NBA
has been saying, and demanding regarding the project. In sum, NBA has
been saying that the project has a flawed cost/benefit analysis, and
there is a need to re-look at this, including several cheaper and better
alternatives suggested by it and some experts. NBA has also been
pointing out that there is no rehabilitation plan, nor is there enough
land available for resettlement of the project affected people. There
have been serious violations of basic human rights and the
rehabilitation policy in case of even the few people who have been
displaced so far.
MPEB AND S.KUMARS DISTORT THE TASK FORCE RECOMMENDATIONS
As soon as the Task Force report was submitted, the Government issued an
Order based on the report. It is indicative of the enormous pressures
that the Private company is bringing on to the Government that this order
deleted the most important and significant of the recommendations - that
of a new cost/benefit analysis. It just said that the C/B analysis is not
required as the project already has techno-economic clearance from CEA.
This was a complete distortion of the Task Force report as the Task
Force had given this recommendation knowing that the project had
techno-economic clearance but it still felt that the new C/B is
required.
Based on this Government Order, S.Kumars is now saying that the
project has secured all clearances, and it will soon start construction.
This too is a distortion, as even the other conditions have to be
fulfilled yet. Information from sources reveal, however, that the real
interest of S.Kumars in issuing these statements and to get the
Government Order issued is to use these to secure the financial
closure of the project. In other words, it is to be used to mislead the
financiers of the project also.
NBA'S WARNING
The NBA has warned the Government of Madhya Pradesh that it will not
take such distortions of the Task Force Report lying down, and has
demanded that the Government immediately withdraw the Order and issue a
new Order requiring the fulfillment of the conditions set by the Task
Force, which includes the condition that no work should be allowed till
these conditions are fulfilled.
NBA has also warned that if the Company tries to re-start the work on
the project, it will launch a massive agitation at the project site.
It may be re-called that the Task Force was constituted after a
indefinite occupation of the Maheshwar dam site in January 1998 by
several thousand project affected people which lasted 20 days, including
a six day long hunger strike.The Order constituting the Task Force also
laid down that the construction on the project would be stopped till the
report of the Task Force is obtained. The Task Force was Chaired by Shri
S.C. Behar, former Chief Secretary and currently Advisor to Chief
Minister of Madhya Pradesh. The Task Force consisted of senior
technical and other officials of the Government of MP, including
Members of NVDA and MPEB, independent experts and NBA representatives.
The Maheshwar project is a 400 MW hydropower project being constructed
on the Narmada river near Mandeleshwar in Khargone district in Madhya
Pradesh, just upstream of the Sardar Sarovar. It is a part of the
ambitious Narmada Valley Development Project of MP, which includes
construction of 29 large dams, 135 medium and over 3000 small dams on
the Narmada and its tributaries, all in MP. The project is to affect
61 villages directly by submergence, and displace 2200 families, a
figure which NBA believes is a serious underestimate. It will also have
several other impacts and costs which have not been counted. Maheshwar
is among the first hydropower project in India to be privatised and the
promoters are S.Kumars, the textile company. A total of 66% of the
equity is held by German companies Bayernwerk, VEW Energie and Siemens.
The German Government has already put on hold the Export Credit Guarantee
and Investment Guarantee to the project pending resolution of the R&R
issue.
Since two years, NBA has organised local people who are fighting for
their rights, and have been calling for the stoppage of work and full
review of the project.
Shripad Dharmadhikary
Narmada Bachao ANdolan
and, Member, Task Force on Narmada Valley, Madhya Pradesh
_________________________________________________
Those desiring a full copy of the Task Force Report on Maheshwar, or any
further information, can contact :
Narmada Bachao Andolan
B 13 Shivam Flats
Ellora Park
Baroda (Vadodara)
INDIA 390 007
Ph : +91-265-38 22 32
Fax : c/o +91-265-330 430 Attn. NBA