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Mar 30, 2007

Jaduguda fallout

Despite the December leak of radioactive material into the rivers and rice paddies of Jharkhand, Indian officials are unwilling to admit that their uranium facilities pose a danger to anyone – least of all the affected local communities.

For the past four decades, the indigenous Santhals of Jaduguda, in Jharkhand's Singhbhum District, have lived in the massive shadow of the Uranium Corporation of India Limited (UCIL). India's ambitious and much-discussed nuclear programme is based on uranium mined in this area. In the villages of Jaduguda, most families have at least one member working in either the UCIL mill or the mines. As a result, people in Jaduguda enjoy a degree of prosperity unusual in this impoverished Indian state.

But it is hard to say that this relationship has been a positive one. Ill health is widespread, and accidents can occur anytime. Indeed, on 24 December 2006, in Dungridih village near Jaduguda, a pipe burst, discharging radioactive waste into a nearby rivulet. The pipe was being used to move the waste from a UCIL plant to a storage dam. No alarms went off at the plant, nor did anyone from the mill bother to warn the village people about the leak – although some Dungridih villagers did quickly alert UCIL officials. Lethal sludge continued to leach into the water for nine hours, killing fish and affecting nearby and downstream communities that depend on the watershed for both fishing and irrigation. Anil Kakodkar, the head of the Indian Department of Atomic Energy, when he visited Jaduguda in early February, noted only that there had been a "small" leak in the pipeline, and hastened to say that it was of no risk to anyone.

In the wake of the disaster, the Jharkhand Organisation against Radiation (JOAR), a local resistance group set up in the mid-1990s, has demanded that UCIL decontaminate the soil and water. According to Shri Prakash, a local documentary filmmaker and activist, the company has removed some of the sludge, but much of it remains on the banks, covered by mud.

It is still not clear why the pipe burst. Nor did UCIL make any effort, then or later, to provide an alternative supply of water to the affected community. But all this does not surprise the people here. They have a long history of battling UCIL and the fallout of its uranium mining. Although it is something of a monopoly employer and has an overwhelming presence here, official probes have found that UCIL does not observe even routine precautions when it comes to the lives and health of the local people. Workers, for instance, regularly take their uniforms home, to wash them casually at local water sources. This is not so much due to workers being unaware, but because UCIL provides them with no washing facility on site.

Over the last decade, the local and national press has regularly reported the unusually high incidence of ill health in the area, particularly that of congenital deformities in children. Local groups such as JOAR have also attempted to increase the public's knowledge of the situation in Jaduguda. In 1999, Shri Prakash made a film titled Buddha Weeps in Jadugoda, which documented diseases in the community, including congenital defects in newborns, sterility in young women, and lung disease in mine and mill workers.

Although UCIL management has denied any link between uranium mining and ill health in the area, in December 1998 the Bihar Legislative Council (Jharkhand at that time was still a part of Bihar) sent its environment committee to look into the situation. The subsequent report laid blame for the ill health of people in the area squarely on UCIL operations, as did an accompanying medical team. Following this, the council ordered the evacuation of 46 families to a minimum of five kilometres away from the site, and recommended putting up notice boards highlighting the site's hazards.

What makes uranium mining so hazardous? In a typical extraction process, usable uranium is extracted from the ore-bearing rock, which is ground and then leached with sulphuric acid. The acid picks up the required elements, leaving behind various radioactive waste products, known as tailings. As in similar operations around the world, open ponds are used in Jaduguda to store these tailings. (Dungridih, the site of the recent leak, is occupied by families originally displaced by the construction of such ponds.) Once the pond is created, liquids from the leaching process are left to evaporate; in Jaduguda, these liquids have seeped out and contaminated the area's groundwater. Furthermore, during the monsoon the radioactive slurry regularly overflows the ponds into nearby rice fields. Finally, as the tailings do dry up, a lung cancer-causing gas called radon is released. Being airborne, the radon can be transmitted for many miles, affecting a multitude of people.

In 2000, local grassroots groups conducted a health survey in Jaduguda. The aim was to record the actual public and occupational health status of the uranium mining and milling operations. The survey was conducted in the villages near the tailings ponds, as well as in 'control' villages further away. The survey team found a discernible rise in congenital deformities among people born after the start of mining operations in 1967. In the villages near the UCIL facility, of the nine children who died within a year of birth, eight had congenital deformities. In the control areas, on the other hand, of the six recorded premature deaths, all were due to reasons such as diarrhoea, fever and premature birth. In the nearby villages, 52 men and 34 women had deformities, in contrast to just seven of each in the control areas. The team also recorded extremely high levels of chronic lung disease in UCIL's miners and millers.

None of this should take anyone in power by surprise – neither the UCIL management nor government officials. Jaduguda's is not an isolated story in the realm of uranium mining, either regionally or internationally. Indeed, it is not even unique to the poor industrial regulations of a developing country. In Canada, for instance, two decades of uranium mining in the Elliot Lake area contaminated 80 kilometres of the Serpent River system, including as many as 10 lakes. In the United States, 22 uranium mills, now abandoned, have left behind an estimated 25 million tonnes of tailings in mostly unsupervised ponds. In these areas, too, uranium mining and milling has been linked to high rates of birth defects. Apart from contamination during storage and recycling of tailings, the experience of these countries has also highlighted the danger of mishaps. In Canada, there have been 30 breaches from tailings dams in the Elliot Lake area alone. The US Nuclear Regulatory Commission admits to at least 15 instances wherein radioactive liquid has been accidentally spilled. In a span of 18 years, there have been two floods, six pipeline failures and seven dam breaks in the US alone.

Following the Dungridih leak, JOAR and other groups have called for the emplacement of inspection mechanisms and procedures to routinely monitor the quality and safety of UCIL's facility, its equipment and working procedures. They have also recommended periodic monitoring of the exposure of local communities to radioactive and hazardous chemical contaminants. Of course, the uranium that originates in Jaduguda retains its risks even after it leaves the area – at nuclear-energy plants, in India's weapons stockpiles, or in tests that endanger unwary communities that inhabit the adjacent spaces, as in Pokhran. For its part, the Indian Department of Atomic Energy denies even the possibility of radiation leaks, declaring that all of its establishments strictly follow procedure, and are monitored regularly.

UCIL is now ready to start mining operations in other areas – Mohuldih, Banduhurang and Baghjanta in Jharkhand, Nalgonda and Kapada in Andhra Pradesh, and in the West Khasi Hills of Meghalaya. Huge deposits of uranium ore have been discovered in these areas, and UCIL hopes cumulatively to extract up to 3000 tonnes of ore per day. In each of these places, local communities are protesting the requisition of their land and the dangers of its use for uranium mining. Despite this, and notwithstanding the situation in Jaduguda, the uranium-mining industry is bullish in India, and the Ministry of Environment and Forests has given a conditional clearance to the Nalgonda project. As with projects from the 'green revolution' to the push for large dams, uranium mining seems to be another arena where local communities pay the price for national 'progress'.

http://www.himalmag.com/2007/april/report_4.htm

Small fries feel the heat

Ranchi, March 29: Dinesh Sahu, a vendor selling plastic toys, was an unhappy man today as he could not earn a single penny to feed his seven-member family.

The man, who used to earn Rs 100 per day, remained busy shifting his makeshift toyshop from a corner near the Ranchi Women's College Science block.

However, Sahu was not alone.

There were many vendors like him, who remained busy throughout the day today with the beginning of the anti-encroachment drive after a gap of about five months. Last time, it was carried out in October.

The district administration hit a soft target today during the daylong anti-encroachment drive carried out in various parts of the city following a Jharkhand High Court directive.

Over 100 illegal constructions were demolished under the drive and most of the people affected were makeshift shop owners and roadside food stalls.

The drive was carried out on the either sides of Circular Road under Lalpur police station and a few parts in Chutia under Chutia police station.

However, there was no information of any damage to any big establishment during the drive.

Sarfaraz Ahmed, a youth who earn to run his six-member family by selling exercise books and pens, said the drive came as a curse for poor like him.

"We are not encroachers. We just put up our stalls beside the road during the college hour to sell stationary items to the students. We are poor and by selling these items, we earn a square meal for our families. We are stealing money or doing anything wrong. Despite this, district administration target us during the anti-encroachment drive," he said.

When asked, subdivisional officer Deepankar Panda said the drive was being carried out on the directive of the Jharkhand High Court. The drive, Panda said, would continue for some more days.

"It is not that we target poor people, we look for encroachers and in this phase, only makeshift stall owners encroached illegally. We have demarcated 12 areas and have deputed 12 teams under the leadership of a magistrate for carrying out the work. We have checked it properly, no big establishment falls under the encroached area," he said.

District public relation officer Mukula Lakra said the drive would continue till April 6. "We have prepared a schedule for it," he said.

Encroachment has always been a matter of concern for the district administration. It is a nightmare for both pedestrians and drivers, he added.

http://www.telegraphindia.com/1070330/asp/jamshedpur/story_7584360.asp

Dacoits in police net

Bokaro, March 29: Five youths, one of them a senior office-bearer of the JVM, of an inter-state dacoity gang were arrested today and stolen goods were impounded.

Apart from the politician — Pappu Jha — who was planning to contest Assembly elections in the future, the others arrested have been identified as Ranthu Singh, Rakesh Tewary, Mukesh Tewary and Charak Baraik. All of them, capable of speaking in English fluently, were arrested from their residences in Bahittand, Lohanchal Colony and Kurmidih.

The police displayed several electronic gadgets, which they claimed to have recovered from the arrested youths in the 19 to 21 age bracket.

The law-enforcers are looking for the kingpin and other members of the inter-state gang, which has reportedly committed dacoities in Jamshedpur, Ranchi and Dhanbad.

The dacoits had, with other members of their gang, robbed the residence of an industrialist and director of Mittal group, R.D. Singh, a week ago. The industrialist, in his statement, had said the dacoits spoke English and had dinner at the place where they commit robbery.

After investigation, the police zeroed in on Pappu and Charak and detained them for questioning. The neighbours of the accused had told the law-enforcers that the two were drinking heavily for the past two days and were frequently talking to someone in English over their mobiles. The police arrested the other three thereafter.

According to the police, printouts of the call details of the mobile phones used by the arrested persons would help trace their accomplices.

Superintendent of police (SP) of Bokaro Priya Dubey said the gang members were detected by their habits — both living and talking.

http://www.telegraphindia.com/1070330/asp/jamshedpur/story_7584326.asp

'Female foeticide may cause terrorism'

PATNA: Is there any relationship between female foeticide and terrorism? This question may sound absurd, but renowned population scientist Ashish Bose believes that the ever-increasing female foeticide in different states of India would ultimately lead to terrorism.

If the youths are jobless and find no women to marry, they are likely to turn terrorist, he says.

Addressing the students and faculty members of Patna University (PU) at Patna Science College geology auditorium here on Thursday, Bose, who had coined the popular term BIMARU states (for Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh and Orissa) in the 1980s, has recently coined a new term, DEMARU, for Daughter Eliminating Male Aspiring Rage for Ultrasound which has become quite prevalent nowadays in the states of Punjab, Haryana, Himachal Pradesh and Western Uttar Pradesh.

Even the existing laws against female foeticide fail to deter the educated people of these states from indulging in this unethical and criminal activity.

Bose, who happens to be a member of the National Population Commission, spoke at length about the state of health, rapid rise in population and under-development in such BIMARU states as Bihar and Jharkhand against the background of national scenario.

He expressed his deep concern over the prevailing scenario and the slow process of population stabilisation in the region.

He cautioned the intelligentsia against the unbridled pace of population increase and while suggesting ways for controlling population growth, he argued that both the government and civil societies would have to strive harder than ever before to save the region from demographic disaster.

Earlier, inaugurating the lecture series organised by the Population Research Centre of Patna University, vice chancellor Y C Simhadri observed that among all the states in the country, Bihar recorded the fastest rate of increase in population during the last census decade (1991-2001) adding about 18 million people to India's total population (which is equal to the population of Australia).

prevailing scenario of high fertility combined with the heavy burden of disease in the state are attributed to under-development, bad governance and low levels of social investment in health and education, Simhadri added.

http://timesofindia.indiatimes.com/NEWS/Cities/Patna/Female_foeticide_may_cause_
terrorism/articleshow/1830413.cms

Thwart The Anti-Development Political Conspiracy Of The Opposition: Jyoti Basu

IN a long interview published in Ganashakti daily on March 28 , former Bengal chief minister Jyoti Basu has spoken on various issues concerning development and opposition to it.

On industrialisation during Jyoti Basu's tenure as chief minister and prospects: Bengal could reach its present position overcoming a lot of obstacle. We must occupy the prime position in industrial development in the country soon. Despite our efforts, we have had to confront and overcome a series of obstacles. The obstacles principally comprised central policies including freight equalisation policy, license raj, and the discouragement shown to industrialists about investing in Bengal.

The central government would not invest directly in Bengal as an example of discrimination. Discrimination was also evident in the acts of the planning commission and of the all-India financial institutions. The central government would cooperate with but a few selected states. Discrimination was made against Bengal as against Bihar, Uttar Pradesh, and the north-eastern region.

From its inception, the Bengal Left Front government gave priorities to land reforms, agricultural growth, decentralised rural democracy through the Panchayat system, seat reservation in the Panchayats for women, voting rights for those 18 years of age, improvement in agri-production, emphasising on cottage and small scale industries. We have underwritten the interests of the poor, the khet mazdoors, and the share-croppers. We have redistributed land among the landless.

Our Left Front government would never run from the Writers' Buildings—we move forward taking along all workers, employees, officers, and above all, the mass of the people in all our endeavours. Decentralisation of administrative and financial powers has been done to ensure the involvement of every section of the people with the act of development. What became an obstacle was the policy of discrimination and deprivation of the union government.

We can cite examples of such obstacles. We had to wait for 11 years merely for the permission to set up the petro-chemicals complex at Haldia. In addition, when we approached prime minister Indira Gandhi for the electronics complex at Salt Lake, the response after a period of one year was that permission could not be given because it was near the Bangladesh border. We then went ahead on our own to allot 300 acres of land for the complex to be set up. Today more than 30 thousand young men and women work at that complex.

Priority areas for infrastructural development: We had reckoned with the existing problems and had started work on setting up new industrial areas. Problems included that of power, and this was because all the agencies, including the planning commission and the central government itself had erred. The typical response of the then Congress-run union government to our request for improvement in power generation was that there would not be any further demand for power in Bengal. Then we came to office and set up the Bakreshwar plant and the Kolaghat plant. CESC set up plants at Budge budge and Titagurh. Slowly the power situation took a turn for the better. A better ambience for industrial investment was created. There was a problem of navigability in the Ganges River because of silting. We have repeatedly drawn the attention of the union government in this regard.

We set up several townships like at Rajarhat and Siliguri where land acquisition was never a problem. Kolkata has several flyovers with planning, participation by and loan from Japan but without conditionalities. The conditional World Bank loan we had refused. The ADB gave us loan without conditionalities.

Following the changes wrought in the union government's policies, license system was scrapped and the freight equalisation policy partially withdrawn in the new economic policy of 1991. I would urge upon the entrepreneurs and industrialists to invest in Bengal. I would ask the workers to enhance production. The workers must struggle for their hard-earned rights. They must also look to the interest of the industry itself.

In the past, some industries had grown during the Congress regime when Dr B C Roy was the chief minister. We had not posed any opposition to the initiatives. Durgapur went into a depression but now a fresh wave of investment has appeared.

Post 1994 industrial policy scenario: The Left Front government declared its industrial policy in 1994. The issue was discussed in the Party and was approved at the 1995 Chandigarh Party Congress. The capitalists invest for profit. Industry is needed for development. We welcome foreign investment and technology in mutually beneficent and appropriate sectors. We welcome indigenous investment without forsaking or weakening state sector and joint sector. We have travelled across USA, England, and Japan explaining our stand. The investors there had shown interest.

There was a negative propaganda against Bengal. We have had to face questions at places like the London School of Economic, University of Berkeley, and Oxford. We had to iterate that there was good work culture in Bengal. Over the years, the misgivings have gone. I have also gone to Holland and Germany. Siemens could be brought back. In the past, Bengal had been at the top of the list of industrialised states. We must get back to that position. From the efforts put in by the present chief minister and his colleagues, this will be a possibility sooner rather than later.

Problems of industrialisation and their resolution: For long periods, we have had effective success in agriculture. We have secured complete self-dependency in food production. We are not out-of-our mind that we would destroy our agriculture and build industries. The principal is to set up industries where there is fallow land. If such land were not available in quantities, we would go in for single-crop, and later multi-crop land. The Tata motors were shown land parcels for the automobile factory elsewhere and they chose Singur. The industries minister has explained the terms and conditions involved. There has been provision made for compensation and rehabilitation. Other proposals for investment are in the pipeline: Jindal's steel project at Salboni, Videocon in north Bengal. There are no problems regarding land in these projects. We want an even growth in the state. Big players in info-tech are coming: Wipro, IBM, Cognizent etc. We need land for industries and we must enhance the level of consciousness. We must tell them that industrialisation is needed to tackle the problem of unemployment. We had not anticipated the reaction of the people that would occur in this way. We should have taken steps earlier to increase the people's consciousness. Some amount of perplexity has persisted. This state-of-affairs will surely pass.

Opposition to development and tackling the issue: The opposition is engaged in political sabotage to deter the developmental efforts. They are not able to fight politically. They have all banded together—the Trinamul Congress, the Maoists, the Naxalites, and the SUCI. The extreme right has joined hands with the extreme left. The role of the Congress is not at all good. The chief minister has repeatedly said that if the people of Nandigram do not want industries, there would be no industry set up there. Nevertheless, peace would not return even then and certain developments occur! We have to be more careful about land acquisition. Land maps have been created now and we have to move according to the maps. A huge amount of lies are uttered in campaign of disinformation against us about Nandigram, and such campaign had taken place in the past as well especially in 1967 and 1969, and after 1977. We must take to the streets and through campaign, profile the real picture before the people.

The misunderstanding among LF partners: There should not be a front within a front. We exhort upon the constituents not to forge such fronts. This will weaken the LF and give advantage to the opposition. The United Fronts of 1967 and 1969 broke up and yet, it was through campaign-movement that Left Front grew up later. The LF fought the 1977 elections and won. One or two members of the LF raise the issue that they are not able to know everything that goes on. If there is such lack of coordination, we have to acknowledge it and take corrective measures. The process of discussion must go on. There should be bi-partite discussions held as is being done now, and later the discussion carried onto the LF meetings. The people must realise that it is the government of the Left Front and not of the Party alone. The core committee must be made more active. However, all problems must be tackled at the level of the Left Front. Separate meetings would hardly be of any use.

Left Front and Left Front government: The major principals of the LF government must be decided at the level of the Left Front. The LF must take decisions based on discussions. The LF government would then take the next steps based on the principal decisions taken at the LF. There would be a review later on regarding the steps taken. The implementation process must be further accelerated. The work of the various government departments must be reviewed. The ministers of our Party must review the work of the departments they run. Similarly, the ministers of the constituent parties running their respective departments must review their work. Review must be made of pending developmental projects like the Teesta project of the irrigation department and the road projects. Through such efforts, the successful implementation of the state LF government's projects would be ensured.

Task of the Party workers now: There had been some misunderstanding over the recent developments including that in Nandigram, among our LF constituents, and within the Party. We have held state committee meetings. We have taken a united decision to tackle the present situation. The opposition is indulging in lies and misleading the people. At the same time, they are murdering our Party workers, and ousting them from their places of residence. These are all works of sabotage. This had happened earlier in Keshpur in Midnapore. We had said then that they must return to their places of residence before the autumn festival.

At Nandigram, several thousands of people have been rendered homeless. Normalcy must be returned as soon as possible. We have learned from the Keshpur experience. We shall not allow anarchy to happen in the state. The big responsibility on our Party workers is to tackle the situation unitedly.

Implementation of the LF government's programme in the days ahead: The LF government works within an ambience of limitation. The LF government is not in a position to set up Socialism. It will try to safeguard and advance the people's interests within its limited capabilities, to the greatest extent possible. The power of the LF government lies in its pro-people outlook. Running such a government within the parliamentary system is an example, here in this country, and abroad. We have received a massive support from mass organisations of workers, peasants, students, youth, women, refugees, et al.

I retired from government on the eve of the formation of the sixth LF government. Buddhadeb Bhattacharjee then deputy chief minister, assumed the responsibility of the chief minister. The government has worked with success. We had gone deep amongst the people in the run up to the last Assembly elections, and we had explained the pro-people policies of the Left Front government.

http://pd.cpim.org/2007/0401/04012007_jb%20interview.htm

Channel goldrush

As if there weren't enough, a spate of new television channels will launch this year against all rational thinking, reports Shuchi Bansal

If you want a feel of what's happening in India's broadcasting sector, meet 38-year-old Delhi-based media consultant Sanjay Salil. The news channel specialist is handling a number of projects for wannabe broadcasters in Delhi, Punjab, Andhra Pradesh, Bihar and the North-east.

Clients's names may be a strict no-no, but he admits: "Among others, I'm setting up channels in the news and lifestyle space for newspaper owners, politicians, filmmakers, builders and rich NRIs." On average, he fields 20 queries a month from people keen to own a television channel.

His thriving business — the company, Mediaguru, moved to a swank new office in Noida recently from a small basement operation in Shivalik — reflects two things. One, that Salil is clearly riding on the success of his first two projects — Channel 7 (now IBN 7) for Dainik Jagran and Manorama News for Kerala's premier print company, Malayala Manorama.

Two, and more important, that India's media and entertainment segment is flourishing. Nearly 30 new television channels — national or regional — in the entertainment and news genre are in the pipeline. Already, over 250 channels beam over the Indian skies and reach nearly 70 million cable and satellite TV homes.

In view of the growing craze of companies and individuals wanting to be part of the action in the broadcasting space, it's imperative to ask some basic questions. First, why is everyone so keen on owning a channel? Is the television business minting money? Again, do we have the wherewithal to distribute them, and why should a viewer watch them?

One of the largest channel bouquets perhaps will come from INX Media and INX News set up by former Star Group CEO Peter Mukerjea's wife

Indrani. Mukerjea is bound by a non-compete agreement with Star and cannot engage in the broadcasting business for the next four months. But that hasn't deterred him from taking the plunge through his wife's company along with former Hindustan Times editor Vir Sanghvi who will be CEO of the news business.

On the anvil is an extensive 12-channel television network. Quiz Mukerjea, who seems to spend more time in the Taj Mahal Hotel's tea lounge in Delhi than in Mumbai, about his new business and he grins: "INX Global is a recruitment firm. So many new channels are coming and I am hiring for those."

Another 18 channels, mostly in the news genre, are being promised by Madhur Mittal, managing director, Triveni Infrastructure Development Company. A real-estate developer who likes to monitor his office through close-circuit cameras, Mittal has already acquired "Sadhna", a religious channel, for Rs 15 crore.

Television software company BAG Films' channel plans are also an open secret. Four channels and an investment of Rs 400 crore is on the drawing board, say company insiders. Plans are afoot to set up an earth station in the company's sprawling Noida complex. Add to this another three channels from the NDTV stable that will hit the small screen in the next six months. Former STAR CEO Sameer Nair will be in Delhi in the coming week to announce his plans for NDTV's entertainment channel.

A host of reasons, other than power and influence, are driving people into the television business. For many the "churn" theory is credible. "The broadcast industry is cyclical in nature and goes through a churn every 5-6 years. Star Plus has been number one for seven years. Now the game is changing. It's the right time to get in," says the managing director of a company eyeing the TV business.

Adds Sanjay Salil: "Look at English news. There are no clear market leaders today. Shares of Hindi news channels also change constantly." He believes there's a market for local and region-specific news channels rather than at a national level.

The bullish industry reports also offer an excuse to take the leap. ADEX India, a division of TAM Media, reports that television advertising grew at a healthy 22 per cent in 2006.

The latest PricewaterhouseCoopers report on the media and entertainment industry predicts that the medium will continue to grow at 22 per cent Compounded Annual Growth Rate (CAGR) for the next four years taking the television industry from its current size of Rs 19,100 crore to Rs 51,900 crore by 2011.

Do reports exaggerate numbers? No way, says Timmy Kandhari, executive director of the media and entertainment practice at PwC. "The industry is easy to understand. The Indian economy is growing, and in a growing economy companies allocate more funds to advertising."

Agrees Narendra Tripathi, vice president, NDTV Media: "India can take many more channels. Advertising is not dipping in a hurry." Many new product categories such as healthcare and auto ancillaries will start using television for commercials. "Five years ago who would have thought hosiery brands such as Lux, Amul and Cozy would be big on news channels?" he asks.

Channel owners are training their eyes on subscription revenue as well. After all, at Rs 12,000 a year, it is almost twice the size of television advertising estimated to be between Rs 6,000 and Rs 7,000 crore. "This will grow to 25,000 crore in four years," says KPMG's media practice head Rajesh Jain.

In the absence of addressability and transparency in the cable business, hardly 12-14 per cent subscription revenue accrues to the broadcasters. "With increased number of CAS (conditional access system) and DTH homes, broadcasters must claim a 30-40 per cent share of this revenue," says Jain.

Increased TV penetration also has potential. TV homes could grow from 112 million to 200 million. And cable penetration (read pay TV market) could grow from the current 70 million to all TV homes. Entry of CAS and new DTH players like Reliance ADAG and Sun TV will expand the pay TV market.

"Organised distribution will boost revenues. So will the greater demand for TV software in the export market and across media platforms. View this in the backdrop of 15-20 per cent increase in ad spends plus further penetration of the medium. The short term story looks positive," says C V L Srinivas, media consultant and former head of the media agency Maxus.

Is positive business outlook the primary reason for the explosion in the sector? Very few industry experts admit it, but the single most compelling reason driving people into the electronic media segment is the high valuations that the TV companies get.

Remarks Reliance Entertainment president Rajesh Sawhney: "When companies with ad revenues of Rs 200 crore get valued at Rs 2,000 crore, people sit up and take notice." Besides, if you invest Rs 50 crore in a channel and sell it for Rs 150 crore, it looks like an attractive business to be in, he says referring to a channel sale some months ago.

It's easy to be starry-eyed about valuations. Set up a TV company and take some known faces on board. Get the company valued and sell small stakes to private equity investors. "You are not putting in your own money and since the markets are buoyant, the game seems to be working," says a media industry source. Sawhney, whose company is also exploring business opportunities in the segment, warns: "Short term to medium term there will be cash flow challenges. There is no pot of gold waiting for you."

That is the crucial point. How many television channel companies are profitable? Of the 10 Hindi news channels hardly three are making money. The CEO of a news channel admits that it is making losses of nearly Rs 5 crore a month. "How many companies are ready to lose that kind of money?" he asks. "This is not to say that there is no scope in this business, but for the first four years balance sheets will be red all over," he adds.

The state of the Hindi mass entertainment market is no different. You need a minimum Rs 500 crore to set up one channel on the lines of, say, Star Plus. Media industry sources say that of the top three channels in this category, one is already bleeding, though financial details are hard to access.

Privately, top entertainment channel executives admit that their profit margins have been squeezed by 20-30 per cent due to huge cost escalation and stagnant revenues. Advertising is getting fragmented and at 15 per cent a year, growth rates in this genre are slower than those in TV overall.

More channels mean more business for Rajesh Kamat, head of the TV production house Endemol's India operation, but he's incredulous about its sustainable growth. "One wonders about the kind of money being pumped in and whether the returns will be as high. If you ask me, the ad pie is growing but not as much to accommodate such expansion."

Besides, the distribution pipes are also choked and the growing subscription revenue theory does not hold. "The distribution matrix will not change overnight. It will take at least three years," says Sawhney. CAS isn't helping broadcasters either. In fact, pay channels like NDTV have gone free to air in CAS notified areas to prop up their declining viewership. "So what subscription revenues are we talking about here?" asks a cable industry expert. The PE investors may have bought the addressability story but it's not cutting ice with the consumer.

In the short term, the DTH growth story is also flawed. While the penetration of boxes may improve, even DTH platform owners are constrained for capacity. There are simply not enough transponders to take on so many more channels.

Besides, those waiting for broadcasters share of subscription revenue to improve may find Sunil Khanna's remark impertinent: "Who says broadcasters will get more from the Rs 25,000 crore that distributors will collect. There will be a fight for that money, too," says the head of Reliance's DTH business.

There are other challenges as well. The supply chain is choked. There is a shortage of script writers and creative directors. "And where are the studios to create all this programming? There is a tremendous shortage of floor space," says a senior Star India executive. Clearly, the new broadcasters on the block will have to invest in their own infrastructure.

Programming issues lead us to another question. Why should a consumer buy and watch these channels unless there's startling content differentiation? Says Sunil Khanna: "Advertising and subscription revenue will follow only if you have content which people are willing to see and pay for." Agrees Timmy Kandhari: "The adage that 'content is king' will be truer than ever before."

However, he does not believe people are being attracted to the segment for the sake of valuations. "It is not a valuation game. The market is quite intelligent. The fact is, it's expanding and of the total media market, television will be 50 per cent by 2011."

Also, you get a valuation when you have a footprint in the broadcasting market. "TV18 and NDTV have established themselves. New people coming in will have to first sell their bouquets," says Kandhari. Adds TV 18 CEO Haresh Chawla: "If people are looking at our valuation and starting a business, they must remember that we own all the must-watch channel brands built over eight years."

However, Chawla says many serious long-terms players are entering the market too. "The market may be fragmenting but it can absorb these changes. How many channels have shut down in India in the last 10 years?" he asks.

While media industry experts are sceptical about over-expansion, they do not feel the business will burst like the dotcom bubble of 1999. The economy will support the growth though only the top four channels in each category will make money.

"The rest will either merge or be acquired," predicts Salil. His contention is that corporate India will enter the broadcasting sector through acquisitions. "That will be the turning point in the business," says Salil, as he takes a call from a shipping tycoon in Bangladesh who hired Mediaguru to launch the country's first 24-hour private news channel. Maybe Salil will need a still bigger office soon.

http://www.business-standard.com/common/storypage_supp.php?autono=279432
&leftnm=2&subLeft=0&chkFlg=Features

Villages around Nalanda to be developed

PATNA: Two hundred villages around a proposed international varsity at Nalanda will be developed in Bihar.

A day after the Bihar assembly unanimously approved the University of Nalanda Bill for setting up an international university, the villages around the proposed site are hopeful that the university will establish linkages with them that will result in their economic development.

Chief Minister Nitish Kumar, in an assembly speech earlier, said the government planned to develop 200 villages around the Nalanda University-the famous Buddhist centre of learning-like in the days of yore.

"At least 200 villages used to be attached to the ancient Nalanda University. We plan the same for the proposed university, to create a near-original ambience and to benefit the local population," he said.

The chief minister had requested the Patna-based K.P. Jaiswal Institute to start identifying villages that used to be attached to the ancient university. All the basic amenities, including, schools, roads, safe drinking water and electricity, will be provided in these villages and job opportunities will also be created for the villagers.

Nobel laureate Amartya Sen and British businessman Meghnad Desai have agreed to be part of an international group of consultants for setting up the university. The state government will also rope in experts from Singapore and Japan for the university.

Japan and Singapore have shown interest in investing about Rs.4.5 billion ($100 million) in the university. Tibetan spiritual leader Dalai Lama has offered to donate Buddhist artefacts to the proposed university.

Nitish Kumar described the bill approved by the state assembly early this month as a great opportunity. The University of Nalanda Bill, 2007, states that the international university would strive to create a world free of war, terror and violence.

"This (bill), which is not only for Bihar or even India, will act as a facilitator for what will emerge as a centre for renaissance of the east. I strongly feel that the university will become a reference point for international relations and a centre for peace and resolution of disputes," he said.

http://timesofindia.indiatimes.com/NEWS/India/Villages_around_Nalanda_to_be_developed
/articleshow/1816343.cms

Tata Motors in biggest ever inclusive development project at Singur

KOLKATA, MAR 29 : Tata Motors has pledged to undertake inclusive development at its Singur plant on a scale not seen in the company's other sites at Jamshedpur, Pune and Uttarakhand.

"We are looking at inclusive growth at our plant in West Bengal on a scale much bigger than what we have done anywhere else," managing director Ravi Kant said Thursday while delivering the Sir Jehangir Ghandy Memorial Lecture organised by the Calcutta Management Association.

Later in the day, Ravi Kant went to Singur accompanied by commerce & industry secretary Sabyasachi Sen and West Bengal Industrial Development Corp managing director Debashis Som to review the progress of the project work.

To highlight the importance of Singur for the state's economy, Kant rattled off names of Tatas rivals, the likes of Mahindra & Mahindra, Bajaj Auto and Ashok Leyland, who have set up their auto ancillary units at Uttarakhand near Tata Motors' another upcoming plant. These big names could get attracted to Singur as well.

"Our Uttarakhand plant would go on stream early next week and we have some 40 auto ancillary vendors who have now set up their units," Kant said.

On the social front, Kant talked of steps that the company would take or has already taken to involve the local people.

Some of the steps are: getting the women of Singur involved in the project; helping the local youths acquire skill to make them employable at Tata Motors' own plant or facilities of the vendors; helping others to get self employment and tying up with various vocational training institutes.

"For inclusive growth, we have already involved the women of Singur to operate a canteen for those who are working at the site. For creating skill in automobile engineering we have already tied up with Bengal Engineering College. And to enhance employability elsewhere, we have tied up Ramakrishna Mission for imparting vocational training. Some other tie-ups with other organisation are also being considered," the Tata Motors MD said.

Kant said he find nothing wrong in either asking for incentives from the state government or deciding to set up the plant on farmland, issues that have raised dust and were also raised by CMA members at Thursday's meeting.

"Incentives by local governments to attract investments is not something unique to Indian states – it's prevalent in Western countries as well. We have decided to set up the Tata Motors European Technology Centre in United Kingdom. Other centres were also eyeing the project. It was then for the local governments to decide what they want to do to attract the project," Kant said.

As for setting up the plant on farmland, Kant said: "It was not us who identified Singur. We were shown six sites, out of which we picked up Singur. It is the prerogative of the state to decide which site to offer us."

http://www.financialexpress.com/fe_full_story.php?content_id=159519

Santa Claus visits the Tatas - Freebies from a debt-ridden government

The uproar over Nandigram — and Singur — in West Bengal will not die away soon. Competitive democracy has its own laws; those opposed to the party ruling in the state will try to squeeze the maximum advantage from the discomfiture it has brought upon itself.

Speculation continues on the riddle as to why, despite repeated assurances to the contrary, the state administration fell back on a colonial-type police offensive to re-assert its authority in Nandigram. The underlying reason, informed sources suggest, was a strong message from the Salim group, who were promised vast stretches of land in the area for their chemical hub project; they might move away elsewhere, the message said, if the land was not handed over to them within the next few weeks. That set the panic bell ringing; the sequel has been horrifying.

Nothing illustrates more glaringly the spell globalization has cast on the country, even on those whose ideology and praxis should have prepared them to cope with it in a better manner. Industrialization, the rationale of which few will dispute, is being taken to be synonymous with industrialization under private auspices. To talk of industrial growth in the state sector is assumed to be heresy. Questions such as whether a particular private project will actually lead to a net increase in employment or output are discouraged too. Fables are having a field day: the private sector means efficiency to the nth degree, public enterprise is the other name for sloth, incompetence and wastage. The stunning achievements of the National Thermal Corporation, Bharat Heavy Electricals, Nalco, the Oil and Natural Gas Commission, the Gas Authority of India or the Indian Oil Corporation in recent years are conveniently ignored. Also brushed aside is any reference to the huge resources at the command of public sector fiscal agencies such as the Life Insurance Corporation of India and the Unit Trust of India.

As in the other poorer countries, here too fiscal devices are introduced at the behest of US-led international financial institutions to compel ruling politicians to desist from taking new initiatives in the public sector. The Fiscal Responsibility and Budgetary Management Act is being applied to admonish both the Centre and state governments not to 'fritter' resources on public sector extravaganzas. There is, in consequence, a gradual maturing of the belief that industrial activities are a natural monopoly of private entities, foreign as well as domestic.

The Left Front in West Bengal is the product of a historical movement which had as its credo the expansion of public goods and industrial growth through the deus ex machina of the public sector. Those currently in charge of the Front government in the state have apparently convinced themselves that, in the era of globalization, ideological shibboleths are poison, development ipso facto is development sponsored by the private sector, the government has only the residuary obligations to acquire land, on behalf of private tycoons, on which industry is supposed to be set up, and, in addition, provide costly infrastructural facilities the private sector will not build on its own because of their low profitability.

Once development is defined in such constricted terms, maximizing the rate of return for private operators becomes the only criterion by which to judge success. The logic is simple: if private profit expands, capitalists feel good; if capitalists feel good, they will expand their activities and the economy will have growth. The state government does not dare to enquire whether activities undertaken by capitalists will be on the basis of any careful analysis of costs and benefits, or whether in deciding the technology for the investments undertaken, alternative choices will be considered. Fifty years ago, when official faith in economic planning was still extant in the country, any investment proposal would be examined, taking into account the expected rate of income growth, the expected rate of employment growth and the expected rate of surplus or profit. With the eclipse of the planning era, such elementary practices have gone the way of all flesh; the only desideratum regarded as relevant is the expected rate of generation of private profit.

This transformation is illustrated most luridly by the details the state administration in West Bengal has finally been forced to disclose concerning the agreement it has reached with the Tata group apropos the small car project at Singur. The Tatas are, of course, rolling in money. Only a couple of months ago, they invested a sum roughly the equivalent of Rs 50,000 crore to take command of a giant international steel complex. To persuade this fabulously rich group to start a modest-sized car factory here, the state government has already spent something around Rs 150 crore to acquire close to 1,000 acres of land. The least that was expected was that it would recoup this amount from the Tatas. Nothing of the sort. Instead, the Tatas have been handed over this entire tract of land on a ninety-year lease without any down payment at all. For the first five years of the lease, they will pay only one crore rupees; for the next twenty-five years, the payment will increase by 25 per cent at five-year intervals; for the next thirty years payment will be raised at five-year intervals by 33 per cent; for the final twenty years, the rent will be only Rs 20 crore per year.

The discounted present value of what the Tatas have agreed to pay, any respectable accountant will vouchsafe, will hardly exceed Rs 50 crore. Equally necessary to take into account here are the historical trends in the rate of inflation and the likely explosion of real estate values through the decades of the 21st century. The conclusion is incontrovertible: the government is, really and truly, making a free gift to the Tatas of the land in Singur.

That is, however, only a minor part of the story. The state government is, in addition, offering the Tata group a gift coupon in the way of a loan worth Rs 200 crore carrying a nominal interest of only 1 per cent (as against the rate currently charged by the banks of at least 10 per cent); the principal, one suspects, is never intended to be returned. Finally, in terms of the lease agreement, the entire proceeds for the first ten years of the value-added tax on the sale of this precious car in West Bengal are proposed to be handed back to the Tatas, again at a nominal interest of only 1 per cent. If 40,000 cars are sold every year in West Bengal — not an unreconcilable assumption — with a value- added tax at 12.5 cent, this particular act of magnanimity on the part of the state would ensure an extra bonanza of more than Rs 500 core for the Tatas.

All told, therefore, the group is being offered the allure of around Rs 850 crore by the state government, apart from their being spared the bother of acquiring the land through their own efforts. The deal does not though mention what the Tatas are, in exchange, offering West Bengal. There is not even a stray reference to the likely employment, direct or indirect, consequent to the setting up of the plant. Were the employment generated not to exceed 10,000, that would just about equal the number of share-croppers and landless farm workers displaced at Singur following the acquisition of land. The state's outlay of Rs 850 crore would be for nothing.

Suspend the debate over the ideology of development. Also steer clear of the pastime of apportioning moral responsibility for the deaths and other incidents in Singur and Nandigram. Forget for the moment the dubious economics too. What about one's sense of aesthetics though? Does it not appear obscene that a state government, carrying a burden of debt of more than Rs 150,000 crore and with a countless number of problems, would offer a freebie of Rs 850 crore to an industrial group which has made an outlay of over Rs 50,000 crore only the other day to satisfy their expansionary ego overseas?

http://www.telegraphindia.com/1070330/asp/opinion/story_7580979.asp

Bamboo Gate Obstructs $12 Billion Investment

Indian villagers protest against the plans of South Korean steel giant

In eastern India the state of Orissa has attracted big corporations like the world's number one steel company Arcelor-Mittal, South Korean steel giant Posco and many domestic players like Tatas, Jindal, Ambanis and others. However, it is unable to implement several projects.

The reason? In all the cases, the government has to confront locals who are unwilling to vacate their lands to make way for the industries.

Take the instance of South Korean steel maker, the Pohang Steel company (Posco), which signed a Memorandum of Understanding (MOU) with the government of Orissa for the setting up of a 12 million ton per annum (mtpa) greenfield steel plant near Paradip Port, at an investment of Rs 5,200 crore (US$12 billion) in June 2005.

The company's investment proposal is considered to be the biggest foreign direct investment (FDI) into India.

But this top global company has failed to acquire an inch of land for its proposed plant even though it has been assured of 4,004 acres of land for the purpose.

The local people have raised an outfit titled Posco Pratirodh Sangram Samiti (PPSS), which literally means Posco resistance group, to oppose the company.

Even the company officials were unable to enter into the proposed plant site area to undertake survey work due to stiff resistance at the ground level.

The company's top officials have already "wasted" 21 months in their bid to get the land in order to execute construction.

A top Posco executive said that they might be forced to call it a day in India, if things did not fall in line soon.

Posco officials have, meanwhile, approached all the concerned authorities including the government of India's ministers for commerce, finance, and steel, and Prime Minister Dr Manmohan Singh.

But all in vain.

The locals have their reasons to oppose the entry of Posco into the area because it is there that their houses are located on multi-crop lands.

Posco's proposed project area, Erasama of Jagasinghpur, which was devastated by a 1999 Super Cyclone, is a rich area so far as agriculture economy is concerned. Farmers produce betel leaves, which have a thriving market in India.

Posco is supposed to acquire seven villages of the area.

One of the major villages is Dhinkia, where 1,266 acres of land was to be acquired by Posco.

But the villagers of the area have erected two bamboo gates to obstruct outsiders from entering the village. These have been standing for 21 months.

So a bamboo gate, literally, is obstructing the entry of foreign direct investment worth $12 billion, said an official.

"How can we sacrifice the lands for a steel plant?" Asked PPSS president Abhaya Sahu, who is a native of the village.

Sahu is not the only person who is opposed to Posco. Many villagers refuse to accept rehabilitation and compensation in order to vacate their lands, and have rejected the rehabilitation and resettlement offer of the government of Orissa.

"We do not want to sell away our integrity and self-esteem. We do not need any help for a living. We are self-sufficient and never hope for handouts from anyone under the sky," said Manorama Khatua, a woman agitator who is among the 500 persons that have formed "self-sacrifice" squads, ready to commit suicide for their cause.

In this situation, the Orissa government and its Chief Minister Naveen Patnaik find it "very difficult" to force the villagers to vacate the land.

"We would never use force [them] to vacate lands for the company," said Orissa home department principal secretary T.K. Mishra.

Posco is not the only global company that faces problems in Orissa.

The world's numero uno steel company Arcelor-Mittal has signed an MOU with the state government for setting up of a 12mtpa steel plant in Orissa's mining belt, the Keonjhar district. It is also caught in a similar situation.

The company has proposed to invest Rs 40,000,00 million in its greenfield project.

The villagers at Patna, the proposed plant site for Arcelor-Mittal, oppose the company's plans.

"Mittal may be richest person in the world. But we love our land, forest and mines. We would not allow it to be given to any company," said Duryodhan Majhi, a local leader.

While the Orissa government has signed at least 45 MOUs with different companies for setting up of steel industries, it has failed to find room for the big ticket investments.

"At least 24 small and medium companies have, however, started production within last three years," Orissa Chief Minister Naveen Patnaik claimed.

The top bureaucrats in the administration recall how they had to suffer after police opened fire at Kalinga Nagar killing 13 tribals during a land acquisition for Tata Steel, who recently acquired Corus Steel.

Jajpur district magistrate Dr Arabinda Padhee blames the Maoists for encouraging the locals' agitation against the industries.

Orissa attracts investments from different parts of the globe for its rich minerals, surplus power and cheap labor.

Orissa is rich in iron ore, and has an estimated 33.2 percent of the total Indian reserve.

With this huge deposit of iron ore Orissa has been able to attract Posco to invest in a big way. But the billion dollar question is whether the government will be able to hold and carry on all these investments and translate them into reality, or will they remain on paper?

While the number of MOUs is rising by leaps and bounds, the problem at the grass root level is equally daunting, say corporate honchos.

Chief Executive Officer (CEO) of the Arcelor-Mittal Group L.N. Mittal said the speed at which the process of land acquisition is happening is a "genuine" problem, he was echoing the concerns of the mega steel companies, which are facing uphill task to acquire farm land for their greenfield projects.

"All the greenfield plans are facing the same problem. Local people should understand that plants would help the process of development," he said.

Similarly in Nandigram of West Bengal, a neighboring state of eastern India, plans to seize farmland for a Special Economic Zone (SEZ) for a Singapore based multinational company were shelved after police killed 14 protesters.

Officials in Orissa feel the Nandigram killing will cast a shadow over Orissa's attractiveness as star investment destination.

But the Orissa government's steel and mines minister Padmanabh Behera is hopeful about settling the problem within three months.

He says the government's rehabilitation and resettlement policy for displaced farmers is among the best, offering cash and employment for at least one member of each family losing all its land.

http://english.ohmynews.com/articleview/article_view.asp?no=352974&rel_no=1

Maoists' poor hotbed is rich in ore

Maoists are not the favourites of Bastar tribals. For the traditional inhabitants of forests, these men represent death, terror, destruction and a perpetuation of poverty. For businessmen, they act as natural repellants.

For a state so rich in mineral wealth, the tribal parts of Chhattisgarh have had remarkably little investment in the last two years. While the Vedanta group set up shop at Korba for aluminium and also a captive power plant with an investment of around Rs 15,000 crore last year, this is far away from Naxalite areas. Not one paisa has been invested in Kanker and Dantewada -- both loaded with iron ore, but also the heart of Naxalite insurgency.

It was on May 8, 2005, that Maoists picked out a mining unit of Hindalco, India's largest aluminium and copper producer, for the biggest guerrilla attack on a corporate facility in the country.

Around 200 Maoists stormed and shut down operations of Hindalco's aluminium mining unit at Saridih in the Maoist heartland and razed several buildings in the complex. Production remained affected for about a month.

The second attack came a year later. On February 10, 2006, hundreds of Maoists raided the magazine of National Mineral Development Corporation (NMDC), India's largest iron-ore producer, manually carrying away enough explosives to fill six trucks.

The NMDC's entire stock of explosives, used in mining, was stored at Hiroli in Dantewada district and was guarded by the Central Industrial Security Force.

On October 30, 2006, rebels raided NMDC again, this time at Bacheli, and destroyed a conveyor belt. Production remained affected for more than 15 days, causing a huge loss to the mining major.

Though the rebels have opposed the proposed steel plants of Tatas and Essar in the Bastar region, stating that they would not allow the companies to exploit minerals, they have not come out in the open.

The villagers are opposing land acquisition by both companies. But the Maoists are yet to share the dais with them, as in Nandigram.

http://inhome.rediff.com/money/2007/mar/17mao.htm

news@jharkhand.org.uk Jharkhand News Network www.jharkhand.org.uk

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