feeds from sacw.net
print versionFrom: http://leoonpublicmatters.blogspot.com
POSCO loot of our mineral wealth and environment is far worse than that in the 2G scam
Jairam Ramesh’s disastrous decision favouring POSCO comes a day after CBI exposes A. Raja’s shocking loot when in Environment Ministry
Mr. Jairam Ramesh, Minister of State for Environment and Forests (I/C) of the Government of India has today cleared the diversion of 3,000 acres of forest land that is a major part of the 4,000 acres required for the POSCO Steel-power-port project in the ecologically sensitive Jagatsinghpur district in Orissa. This does not take into account additional land required for the project’s industrial township and associated water, road and rail infrastructure.
Ramesh’s decision is based on an unprecedented claim of the need for “Faith and trust in what the state government says (a)s an essential pillar of cooperative federalism†(emphasis in original). The rationale offered is that “(b)eyond a point, the bona fides of a democratically elected state government cannot always be questioned by the Centre†(emphasis added). This even when Ramesh expresses what can be termed as very serious doubts about the capacity of Orissa Government to protect the interest of the State of Orissa and the people of India when he says that the POSCO “MOU had provisions for the export of iron ore which made me deeply uncomfortable with this project†(emphasis added). He also admits that he “could well have waited for the MOU to be renewed and for a final decision of the Supreme Court†which is hearing an appeal on the decision of the Orissa High Court cancelling the Orissa Government’s allotment of unprecedented and out of turn iron ore mining permits benefiting POSCO.
The simple and plain question that cries out for an answer then, is why did he not? Does he respect the Orissa Government more, and the Supreme Court less?
Evidence loses out to “faith and trust†:
Speaking in favour of POSCO and comprehensively rejecting serious contestations over the legality of environmental and forest clearances accorded, Mr. Ramesh has spoken in many ways for the Government of India. After all the forest clearance was perceived as the only major hurdle for this mega project as all other Ministries (such as Coal, Mining, Finance, etc.) were merely waiting for him to make up his mind. In so doing, Jairam Ramesh decided to go with the Orissa Govenment’s claims that the Palli Sabha resolutions of Dinkia and Govindpur Gram Panchayats are “fraudulent†and even invested a lot of paragraphs to ensure that the Sarpanch Shishir Mohapatra who is accused by the Orissa Government of perpetuating this fraud is punished, else “the state government’s argument will be called into serious question†. Thus, admitting he is really not sure about the facts of this critical matter involving forest rights.
His unseemly haste to clear POSCO based on his innovative argument of “faith and trust†as “essential pillar of cooperative federalism†flies in the face of his rejection on 14th April 2011 of the Orissa Government’s claim that it complied with the Forest Rights Act. His argument then was that “(i)gnoring.. two Palli Sabha1 Resolutions and not allowing them to be subjected to a due process of law as enshrined in the Forest Rights Act, 2006 would be tantamount, in my considered opinion, to violating the very essence of this legislation passed unanimously and with acclaim by Parliament†. This position was at least consistent with the findings of the two independent investigative committees that found blatant violation of Forest Rights Act by Orissa State. Not now this decision that rests on “faith and trust†- such spectacular arguments simply have no place in environmental decision making or any public decion process at all.
By so basing his argument, the Minister exposed not only his prejudice claims of forest dwelling communities, but also his utter incapacity to rigorously enforce the due process of law to completely ascertain a fact. Instead, he abandons this critical exercise by saying “I have already examined the legal issues... and therefore there is nothing to be gained by seeking further legal opinion. Similarly the facts of the case... are too obvious to require any further enquiry or verification†(emphasis added). Surely, Mr. Ramesh has is aware that the environmental laws are based on criminal procedure code, and that he has to spare no effort in ensuring that material submitted in seeking clearances are not to be a subject of his opinion or reasoning.
Investigative Committees appointed, and their uncomfortable reports sidestepped:
Only last year Jairam Ramesh appointed very senior and widely respected former bureaucrats and experts in two fact finding committees to investigate into all aspects of the coastal regulation, forest diversion and environmental clearances accorded to the POSCO project. And when the Committees returned with reports exposing extensive illegalities and fraud in the decision making processes, Mr. Ramesh chose to sidestep these reports and in his ’speaking order’ of 31 January 2011, supported the clearances accorded by his scam tainted predecessor, Mr. A. Raja, now in Tihar Jail on corruption charges by CBI.
Of course Ramesh laboured to justify his claim to being a socially and environmentally conscious Minister by adding dozens of additional conditions, which on close scrutiny are largely seeking rhetorical commitment to safeguarding peoples’ rights and the environment. Many of these additional conditions articulate the need for thorough assessments and comprehensive studies into environmental and social impacts of the project, and thus expose the undeniable fact that the earlier clearance decisions were entirely based on the lack of such relevant material. The conditions also speak of the need for evaluating the high risks involved from cyclones and tsunamis in the coastal site selected for plant, a point not to be taken lightly following the recent Japan experience. This particularly considering the fact that 1,000 acres of the 4,000 acres for the steel plant will be only to dump fly ash and sludge. Moreover, the port is proposed in the Jotadhar creek, a highly sensitive area known for nesting habitats of critically endangered Olive Ridley Turtles and Horse Shoe Crabs, and as spawning grounds for fishes.
Not to be overlooked is the fact that POSCO proposes to raise the base height of the plant from 0 MSL to 6 MSL, largely to avoid any serious impact on its plant from anything like the 5.6 metres tidal wave that slammed this very region in the super cyclone of 1999, leaving a trail of destruction and misery tens of kilometres inland. In a travesty of the well-honed science of environmental decision making, the single largest steel-power-port-township and potentially mega mining project ever conceived in the history of India, and also the largest industrial project conceived in recent decades world wide, has now got the push forward. And this admittedly on the basis of little or no knowledge of its irreversible social and environmental impacts and associated economic and natural disaster risks.
By this decision Jairam Ramesh has thus chosen to overlook the findings of the POSCO Investigative Committee appointed by him with former Environment Secretary Ms. Meena Gupta as chair. The unanimous recommendations made by 3 of the 4 members are:
1.
“....(T)hat in view of the glaring illegalities which render the clearances granted illegal, the EIA and CRZ clearances dated 15.5.2007 for the port and the EIA clearance dated 19.7.2007 for the steel plant should be revoked after following the due process of law.
2.
The project proponent if it so desires may prepare a comprehensive EIA for both the port and the steel plant in accordance with the notifications now in force including all the various component of the project such as rail and road transportation, pipe line, township, mining, etc. for the full capacity of the plant and its components.
3.
If the project proponent applies, a fresh public hearing may be conducted on the basis of the new comprehensive EIA to be prepared by the company.
4.
In the meantime no body should be dispossessed of their land and since all clearances are ..prior to the commencement of construction no alterations of any nature should be permitted on ground.â€
Enormous volumes of public monies and resources were invested in these investigative efforts, and they were meant to assist the Ministry, and the Minister, in ensuring a fair, just and correct decision was made in this mega project. But Jairam Ramesh decided to dump all this into the trash cans of the Ministry raising serious questions about his credibility and that of his Ministry when in a ’speaking order’ of 31 January 2011 he claimed that “(u)doubtedly, projects such as that of POSCO have considerable economic, technological and strategic significance for the country†(emphasis added). Despite all of Mr. Ramesh’s best efforts to avoid the risk of being accused of “filibustering†, he seems to have done exactly that. By overlooking relevant facts, and choosing to grasp on claims of the Orissa Government, he now hopes to distract attention from the shocking finding of the Investigative Committees that serious illegalities and fraud backed key environmental clearance favouring POSCO.
Such argumentation also raises serious questions about his jurisdiction in so deciding for India, when his job essentially is to ensure that Ministry of Environment and Forests is environmentally sensitive, non-corrupt, efficient and just in its decisions, whatever be the ’strategic significance’, scale or nature of the project. A terrible consequence of such subjective reasoning is that it can now be applied to almost all projects: Jaitapur Nuclear power plant, Lavasa, Gundia power project, some windmills in a forest and so on. In the POSCO issue, Mr. Ramesh has irreversibly lost the opportunity of demonstrating his much proclaimed un-yielding commitment to ensure the rule of law, lack of corruption and transparency (which it must be noted is not merely of sharing documents backing his decisions, but to demonstrate the rationale by which he arrived at such).
Cleared by Raja, is POSCO not scam tainted?
A major development that is reported in today’s papers is that the Central Bureau of Investigation (CBI) has begun to investigate into the role of Mr. A. Raja in according environmental clearances during his term 2004-07 as Union Minister for Environment and Forests. The allegations are that Mr. A. Raja liberally gave environmental clearances to 2,016 projects, and that over just two years! His front man in this operation was Mr. R. K. Chandolia, then director of planning and coordination in the environment ministry. Today both are implicated in the 2G scam and are in Tihar jail.
POSCO was one of the projects that Raja cleared, specifically the captive port component. This decision was taken on 15th of May 2007, exactly a month after the controversial statutory Environmental Public Hearings that involved major human rights violations. More importantly, this decision was taken in the final hours of handing over charge of the Environment Ministry and assuming office as Union Minister for Telecom and Communications. On trot with Raja was Chandolia as personal secretary. When it was pointed out that such an appointment of an Indian Economic Services bureaucrat was violative of law, Raja elevated him as Economic Advisor to the Minister, next only to the Secretary.
It would be specious to believe that Raja and Chandolia began their corruption racket only in the Telecom Ministry. It is for this reason that CBI is now investigating the decisions these gentlemen took while they were in the Environment Ministry. The specific charge is DB Realty which benefited from the telecom scam had also benefited in securing easy environmental clearances when these two men operated in the Environment Ministry. Could it be possible that their corruption was strictly limited to benefit only DB Realty? Not POSCO or any other project?
The unseemly haste by which Raja cleared the port component of the massive POSCO project was a strong indicator of favourable decisions that were meant to follow. Ms. Meena Gupta, who took charge as Secretary of Environment Ministry on 1st June 2007, ensured that the environmental clearance to the steel plant was accorded on 19th July 2007 without much ado. At that time the Ministry was without a Minister and was directly under the supervision of the Prime Minister of India – offering not much of a chance for a close look-see over executive decisions. Despite all this evidence, or probably because of such, Ramesh appointed Meena Gupta to officiate the Investigation Committee into POSCO, resulting not surprisingly in her dissenting note favouring the decisions taken.
The Korean/US TNC POSCO project proposal (Warren Buffet who recently toured India has a major stake in the project) has a capital outlay of Rs. 51,000 crores (by 2005 prices) and involves production of 12 mtpa of steel. It also includes the promise of according iron ore mining rights of a stupendous 600 million tonnes over 30 years. With a captive port accommodating the movement of the largest commercial ships ever built, and also of a power plant, this is undoubtedly a peach of a deal for any industrial house. The unprecedented nature of profits that accrue from such a mega project demands without any doubt a rigorous and serious scrutiny. Far more seriously than efforts now underway to uncover the scam in the Commonwealth Games, 2G telecom deal, Bellary mining, etc.
A review of the Environment Ministry’s clearance records reveals that no other project has been accorded such hasty and favourable treatment as with the POSCO project. There are tens of small and medium projects that have fully complied with procedural requirements, and yet do not secure environmental clearance within weeks of a Public Hearing. POSCO already was of ’strategic significance’ then, at least to Raja it was. Now that Jairam Ramesh has endorsed Raja’s decision, it won’t be long before Karnataka’s Chief Minister Yeddyurappa accuses Ramesh of bias for rejecting the Gundia power plant which the former claims is of ’strategic significance’ to the state. Similarly, Goa will make a case that mining in the Western Ghats is of critical economic importance. Mr. Sharad Pawar, Union Agriculture Minister, has for some time now been berating Ramesh’s moratorium on Monsanto’s Bt Brinjal claiming it is critical to secure the future of Indian agriculture!
CBI enquiry into POSCO is a must now:
There is simply no option now but to ensure that the CBI completely examines all decisions taken by Raja during his time in the Environment Ministry, and not only those relating to DB Realty. This is of strategic importance to our country, especially considering the discomfort expressed by none less than Mr. Jairam Ramesh over the unprecedented “export of iron ore†involving 170,000 DWT CAPESIZE super tankers – the largest commercial ships ever built in the world – that POSCO proposes to employ in its shipping out activity.
As revealed in the stupendous iron ore mining scam in Bellary, there is far too much money to be made in the POSCO deal. The POSCO kind of loot of non-replenishable natural resources, associated with the destruction of thousands of natural resource dependent livelihoods and the environment, is a far worse scandal than the 2G scam. Airwaves are ambient, can be reallotted and the perceived loss is essentially in money terms. Iron ore, forests, coastal areas, livelihoods, critically endangered species simply aren’t.
True Federalism is to respect Local Governments as equals:
In the federal structure of governance in India, local elected governments are in no way inferior to the elected bodies at the State level. Ensuring such separation of powers and autonomy in functioning is the whole purpose of the Panchayati Raj Act and the Forest Rights Act and other such provisions in the Constitution. When such is the law of the land, a Minister does not enjoy privileges of over-rating the State’s position over that of a Panchayat, on the basis of specious reliance on “faith and trust†. Not to be missed is the fact that Jairam Ramesh was aware that the CBI had begun investigating Raja’s possible corruption while in the Environment Ministry. And could thus have waited for the CBI to give a clean chit to Raja’s role in the POSCO decision. But Jairam Ramesh chose not to, and in fact announced his pro-POSCO decision the very next day.
All these circumstances demand that the POSCO project decisions must be thoroughly investigated by the CBI. It is high time that our Parliamentarians also focussed their attention on the POSCO decisions, in addition to the 2G and such other scandals.
Leo F. Saldanha
Coordinator
Environment Support Group
leo@esgindia.org
02 May 2011
