Showing posts with label companies. Show all posts
Showing posts with label companies. Show all posts

October 19, 2011

life in general & financial markets: industrialists & politicians get together manipulate good environmental laws



Below is an article written by Centre for Science and Environment's Sunita Narain which talks about an isssue which is yet another revelation of how industrialists, companies and politicians get together to violate good environmental laws




http://downtoearth.org.in/content/bogey-green-clearances

The bogey of green clearances

Sunita Narain
Issue: Oct 31, 2011
imageThe environment is holding up growth and economic development. This is the common refrain in circles that matter. So when the Group of Ministers tasked to resolve the issue of coal mining in forests asked for a report on what needs to be done, it was told that the best would be to dismantle green conditions, almost completely.
The B K Chaturvedi committee recommends that all coal mining projects should be given automatic clearance, with exceptions only for projects in “dense” areas. There is no definition of “dense”, of course, or an understanding of the importance of forests for water and livelihood. Then the committee wants all those provisions that seek to protect the rights of people or the environment to be relaxed. It recommends that the gram sabha, required to give consent to the project, should be held without a quorum. In other words, democracy should be sidelined. Similarly, public hearings should be done away with when it comes to expansion of the current mines. It also recommends that even in areas identified critically polluted new projects should be allowed without check. It has no time to waste on such minor considerations as the health of the people who live in these regions. The horrendous cumulative impacts of these massive projects must be ignored, because we are a nation in a hurry, it says.
This report reflects the general mood. It is for this reason the proposed manufacturing policy, which seeks to create massive areas as national investment manufacturing zones, wants none of these inconvenient green checks. It wants to take away all powers of the environment and forest clearances from the Centre and state agencies and hand them over to the project proponent.
But are green clearances holding up projects? My colleagues spent days poring over the Union Ministry of Environment and Forests’ publicly available database to seek answers. What they found should make us wonder why there is such a hue and cry about the environment as an impediment to growth. In fact, the reverse is true: green clearances are certainly failing to safeguard the environment. This is what should concern us. Make us angry.
First, it should be understood that the scale and pace of green clearances have been unprecedented in the past five years. In fact, the pace doubled, with 203,576 hectares (ha) of forestland diverted for mining and industrial projects in the past five years. Coal mining accounted for more than half the forestland diverted, and as many as 113 coal mining projects were cleared—the highest in a five-year plan since 1981.
Secondly, clearances when added together overshoot the current and future targets. Take power projects. The 11th Five Year Plan targets 50,000 MW of additional thermal power capacity to be created till 2012. In the 12th plan the proposal is to add another 100,000 MW. This is what needs to be built and set up till 2017. Now consider this: in the past five years, till August 2011, the Union Ministry of Environment and Forests has granted clearances for an astounding 210,000 MW of thermal power capacity, that is 60,000 MW more than what has been proposed till 2017. Now also consider the fact that the thermal power capacity built in the past five years was a mere 32,394 MW. What is going on? Why are new projects asking for clearances when the old, cleared projects are still not being built? Is this a land-water-coal scam, given that each project sits on valuable natural resources? Or is it all about getting the licence to pollute?
Take the cement industry. At the end of the 10th plan, India’s installed capacity was 179 million tonnes per annum (MTPA). During the 11th plan, green clearances have been given to an additional 190 million tonnes per annum, which takes the combined capacity to 369 MTPA, far beyond what is operational or what is proposed as the target for this period. This is true for virtually all the industrial sectors we analysed.
There is another layer of misinformation. Coal shortage is being cited as the reason for underperformance of the energy sector, which, in turn, is leading to a strident call to open up more forested regions for digging. The fact is Coal India Limited (CIL) produces over 90 per cent of India’s coal; it controls over 200,000 ha of mine lease, including 55,000 ha of forest area. The estimated coal reserves with CIL are 64 billion tonnes, and the company produces 500 million tonnes per annum. Who is then responsible for the shortage of coal in the country?
What is clear, instead, is that in this haste to give clearances, it is the environment that is being short-changed. Most mining districts of the country have become a living hell. More are emerging as the hotbeds of thermal, mining and industrial projects, and nobody wants to fix the horrendous environmental fallout of this growth.
What needs to be done? In my view, environmental regulations should be strengthened, not weakened. Growth managers must look for other reasons they are failing in pushing up industry numbers. More importantly, environmentalists must see how the regulatory regime can be worked better. This is the agenda that matters.

April 01, 2011

life in financial markets: how companies & politicians collude to damage the environment and violate human rights


In my understanding, Dow Chemicals is a dangerous company. But no dangerous company in the world who causes danger to damage the environment and violates human rights can get away with it for too long.

The Hindu newspaper which has been carrying a series of Wikileaks' documents of US consulate officials in India has a story that exposes Dow Chemicals manipulative activities in India. 

I share below the text of three things -- (1) the US consulate official's cable talking of Dow Chemicals which is published in today's edition of The Hindu, (2) the analytical newsreport carried by the newspaper today on this issue and (3) a statement issued today by the local group of villagers fighting the Dow Chemicals project.

(1) The US consulate official's cable:

173725 10/15/2008 4:31 08MUMBAI491 Consulate Mumbai CONFIDENTIAL 08MUMBAI459 "VZCZCXRO5829
PP RUEHBI RUEHCI
DE RUEHBI #0491/01 2890431
ZNY CCCCC ZZH
P R 150431Z OCT 08
FM AMCONSUL MUMBAI
TO RUEHC/SECSTATE WASHDC PRIORITY 6652
INFO RUEHNE/AMEMBASSY NEW DELHI 7890
RUEHCG/AMCONSUL CHENNAI 1897
RUEHCI/AMCONSUL CALCUTTA
RUEHBI/AMCONSUL MUMBAI 1805
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEAIIA/CIA WASHDC
RUEHIL/AMEMBASSY ISLAMABAD 0803
RUEHKA/AMEMBASSY DHAKA 0803
RUEHLM/AMEMBASSY COLOMBO 0794
RUEHKT/AMEMBASSY KATHMANDU 0619" "C O N F I D E N T I A L SECTION 01 OF 03 MUMBAI 000491
SIPDIS
E.O. 12958: DECL: 11/15/2023
TAGS: EINV, EIND, ECON, PGOV, IN
SUBJECT: DOW CONTINUES TO RUN THE GAMUT OF INDIAN POLITICS
REF: MUMBAI 459
CLASSIFIED BY: BANSALG, ECON, ECON, STATE.
REASON: 1.4 (b)
1. (SBU) Summary. On October 1 Maharashtra Chief Minister (CM) Vilasrao Deshmukh ordered a halt to construction of the Dow Chemical Company's Research and Development facility near Pune until a commission can review Dow's plans. The CM ordered this halt to defuse broadening protests against the construction of the facility, which had risen to the attention of major political leaders outside the state. Dow is dispirited by this move, and blames continued local political problems and corruption for the problems. Protest leaders say that Dow needs to answer the villagers concerns, and hope the conflict can be resolved peacefully. Dow is contemplating other options - including pulling out from the site - but fears that protests will dog its investments elsewhere in the country. In this, Dow continues to underestimate the political ramifications of its purchase of the assets of Union Carbide, a company whose legacy in Bhopal still provokes fear and concern in Indian communities. Meanwhile, political opportunists and grassroots politicians seek advantage in the travails of Dow, while senior political leaders find it difficult to confront head on a situation that seems combustible. End Summary.
Maharashtra Chief Minister Puts Dow Project on Hold
--------------------------------------------- ------
2. (SBU) On October 1, Maharashtra State Chief Minister Vilasrao Deshmukh announced that he was ordering a halt to construction of Dow's Research and Development facility for at least 30 days. (Note: Deshmukh made the announcement from London; he had traveled to the U.K. and the U.S. to promote Maharashtra as a good investment destination. End Note.) Dow began construction on the facility -- a $100 million research and development facility outside of Pune which will eventually employ 500 scientists - this year. This facility is located in a new industrial area developed by the Maharashtra Industrial Development Corporation (MIDC) about 40 kms from Pune, rural land that had previously been used for grazing. Dow's facility has been plagued with] protests, largely stemming from Dow's 2001 purchase of the U.S. remnants of Union Carbide, the company responsible for history's largest industrial accident in Bhopal, India, in 1984 where over 3000 people were killed (see reftel for background). When protests at the facility turned violent in July, the state government assigned round the clock police protection to secure the site. Construction resumed, but the agitation against the facility had grown and diversified.
Protesters Increasingly Diverse. And Effective
--------------------------------------------- -
3. (SBU) According to Dow, three major groups have combined to protest Dow's facility. The initial groups consisted of NGOs and activists involved in the campaign for justice on behalf of the victims of the Bhopal tragedy. These activists have targeted Dow since its purchase of Union Carbide, and have protested Dow's operations throughout India. According to Dow, these activists have told villagers about the Bhopal tragedy, and invoked fear that Dow would do the same at this site. The second faction is led by local Shiv Sena Member of Parliament, Shivajirao Adilrao Patil. While Dow has met Patil several times to explain the nature of their facility, Patil has continued to stir up trouble against the company, and has led several protests. The third angle stems from concerns by a popular local religious sect, the Warkaris, who worship at a river shrine about 60 kilometers from the site. They fear that Dow will dispose of chemicals at the site, which will pollute the groundwater and the river they revere.
4. (SBU) Dow representatives told Congenoffs that Warkari leaders met recently with visiting Union Minister for Agriculture Sharad Pawar, who is from Maharashtra, to protest the Dow facility. According to Dow, Pawar dismissed their complaints, telling the religious leaders that Dow is a good company, and that they should not interfere in the industrial policies of the state. This prompted the Warkaries to publicly denounce Pawar and his connection with Dow, and threaten to protest during the Commonwealth Youth Games which are to be held in Pune in October. Dow said that Pawar subsequently asked CM Deskmukh to stop the construction until a commission can review the charges. This will be the second state-appointed commission
MUMBAI 00000491 002 OF 003
to look into charges that Dow could pollute or damage the environment at this site. Dow representatives said that Deshmukh called Dow CEO Andrew Liveris to reassure him about Dow's investments, and said the commission will take two months; Liveris, increasingly frustrated, told Deshmukh that it needs to take less than one month.
Patil Says That Dow Needs to Do More to Meet Village Concerns
-----------------
5. (SBU) In a September 25th meeting with the Consul General, Shivajirao Adhilrao Patil expressed his desire to resolve the dispute peacefully. He informed the CG that he opposes the project because the local villagers are not informed about the project, and do not want it. Even though the state government owns the land, the villagers look after it and they should have been taken into confidence. As a business owner himself, Patil said that he is usually very pro-business and claimed to have helped create one of the largest Special Economic Zones (SEZs) in the country on 5,000 acres in his constituency which already has operations by multinationals like General Motors and Hyundai.
6. (SBU) According to Patil, the villagers learned that Dow was connected to Union Carbide from newspaper stories. Patil said that Dow has drilled dozens of holes near the site and run pipes throughout the area, and villagers feared that Dow will pollute their groundwater and sacred rivers. Patil informed the CG that he responded to the villagers concerns by meeting representatives of the National Chemical Laboratory who showed him that the approvals that Dow had received. These documents showed that the company had received permission to manufacture chemicals. According to the MP, this was startling news. He explained that even the Environment Department had not been aware that the company had received permission to manufacture chemicals.
7. (SBU) In July 2008, Patil met Dow's CEO and stressed that the company needed to explain the project to the villagers, preferably through a public relations agency that was experienced at this. The MP stated that company ignored his advice and decided to rely on police force and started work on the site. Patil noted that it was because of this decision that the Warkaris started protesting and a Dow vehicle was burned.
8. (SBU) Patil reassured the CG that the safety of any American or Indian working for Dow will not be compromised. However, the strong police presence is focusing anger at Dow, and the situation could get out of control. He advised that Dow should go slow for now and reduce the police presence, and work harder to convince villagers that the facility is truly a research and development facility. He still thought that Dow should hire a public relations agency like the one that the local company Bharat Forge hired when it ran into problems, and give donations to local villagers to resolve the situation.
Dow Says Corruption and Politics At Root of the Problem
--------------------------------------------- ---------
9. (SBU) On September 29, Congenoffs met with Rakesh Chitkara, Dow's Head of Corporate Affairs, to discuss the recent developments. Chitkara said that Dow has met with Patil several times to clarify issues. Three months ago, the company hired the public relations specialist Patil recommended for USD 20,000 per month. (Note: Chitkara said that the PR specialist is a ""close associate"" of Patil. End Note.) They have also hired a number of local villagers for construction projects, helped refurbish a local school, expanded water services, and acted on a number of other public works projects that were requested in writing by the local village council.
10. (SBU) On the issue of drilling holes into the ground, Chitkara countered Patil's charges, stating that Dow has been drilling holes to study the soil strata which is standard construction practice; he added that after receiving government approval, four holes had been drilled to ascertain the water content of the subsoil. He noted that the soil contained no water so water is currently being brought to the site by tanker, not the local rivers; furthermore Dow shares this tanker water with a Korean company, Hyundai, which is also building at the site (and has had no problems).
MUMBAI 00000491 003 OF 003
11. (SBU) On the charge that their approval allows them to manufacture chemicals, Chitkara countered that the state application forms do not have a category for R and D facilities, and it was mistakenly labeled as a manufacturing facility. Dow had taken the step to rectify this language to show that manufacturing will not take place at the site. (The facility will be used to research and develop chemical applications for alternative energy and transportation.) He added that all of the information that he had shared with us had already been shared with Patil -- repeatedly.
12. (SBU) Chitkara said that the company was pessimistic that the Maharashtra state government will make any decisions in the time period specified by the Chief Minister. Moreover, Maharashtra Chief Secretary Johnny Joseph called Dow to express his support, but asked for time to defuse the situation. Dow expects the state government to appoint another committee to review the claims against Dow, all of which had been answered before. In the meantime, the company is losing USD 250,000 a month. Dow CEO Ramesh Ramachandran told Congenoffs that these protesters are seeking a ""buy-out,"" but have not yet ""internalized"" that Dow will not pay.
Dow Faces More Problems with Gujarat Project
--------------------------------------------
13. (C) Chitkara said that Dow is also having problems with its investment in a Gujarat state-owned company. The investment requires approval from the Foreign Investment Promotion Board (FIPB), which it expected because of support from the Gujarat government and the Finance Ministry. However, Dow was told that the Ministry of Chemical and Fertilizers has put a hold on the project. According to Chitkara, however, when agents of Dow met with Union Chemical and Fertilizer Minister Ram Vilas Paswan, he demanded a large sum of money from the company before he would support the project. The company refused to pay and the investment remains on hold. Dow has also discussed this problem with Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, who was reportedly sympathetic, but unable to overcome this opposition. [Note: It is unclear at this stage what ostensible reason the Chemicals Ministry offered to the FIPB for not approving what is a routine application. End note].
Comment:
14. (SBU) Dow has told Congenoffs that they do not have infinite patience for the political and other problems faced by their business in India. While Dow could write off the $15-20 million of their investment so far, the company fears it could face protests and harassment wherever it settles in India. Clearly, Dow has become an easy target for politicians seeking to exploit the company's situation, especially as state and national elections are just around the corner. Currently, Maharashtra is run by a coalition under a weak and ineffective Chief Minister. While another commission could put this issue off the table for a few more months, opposition politicians have found a combination of issues close to the hearts of their voters: land, environment, livelihood, and religious devotion. In relying on the promises of protection of the state, Dow continues to underestimate the political ramifications of the company's connection to the legacy of Bhopal and Union Carbide. End Comment.
FOLMSBEE 

(2) The analytical story in The Hindu newspaper today

THE INDIA CABLES
April 1, 2011

Sops for chemicals?
Sarah Middleton
Nirupama Subramanian

The U.S. Consulate in Mumbai reports on the manoeuvres of the Dow Chemical Company to get its plants cleared, and the contradictory responses of powerful politicians
The Dow Chemical Company, an American multinational that bought the infamous Union Carbide, appointed a public relations manager recommended by a Shiv Sena parliamentarian at a generous monthly salary of $20,000. This was done in the hope that it would put an end to the protests the politician was spearheading against its proposed research facility in Pune.
Over in Gujarat, the company had to put on hold a proposed investment by its European arm in a state-owned unit because a Union Minister allegedly “demanded a large sum of money” to clear the project, which Dow refused to pay.
These allegations are contained in a confidential Mumbai Consulate cable sent to the U.S. State Department in late-2008 and accessed by The Hindu through WikiLeaks.
Asked by The Hindu to respond, the two politicians, Shiv Sena MP Shivajirao Adhalrao Patil and Ram Vilas Paswan, at the time the Union Chemicals and Fertilisers Minister, denied the allegations as totally baseless. Attacking Dow and Union Carbide as “criminals in my mind,” Mr. Paswan asserted that they were trying to tarnish his image because he and his Ministry “strongly opposed their plans to establish a presence” in Gujarat even while “the case of remediation costs for the Bhopal disaster” remained unresolved.
The cable was sent under the name of Consul-General Paul A. Folmsbee (173725: confidential, October 15, 2008) after Consulate officials reported they had heard detailed separate versions of Dow's troubles from company representatives and the Shiv Sena MP, Shivajirao Adhalrao Patil.
The cable drew an outline of politicians seeking to exploit Dow's handicap in India – arising from its association with Union Carbide and the legacy of the 1984 Bhopal gas leak disaster – for direct or indirect personal benefit. But even where politicians and government functionaries were reassuring or sympathetic, when crunch-time came, they were of no help.
As for Dow, the Mumbai Consulate concluded it did not have the nous to grasp the political implications of being associated with Union Carbide and the legacy of the Bhopal gas disaster, especially with the 2009 parliamentary elections just months away.
Dow's Pune facility was to come up on 100 acres of grazing land in Chakan, Shinde village. Just a day before the Maharashtra government ordered a temporary halt to the construction at the site on September 26, 2008, and appointed a commission to inquire into the complaints against it, the Consul General had met Mr. Patil, the Shiv Sena MP from Shirur in Pune district, to talk about the protests against Dow.
Dow's behind-the-scenes manoeuvres
The politician had expressed “a desire to resolve the dispute peacefully.” The villagers should have been informed about the project, he said.
The Mumbai Consulate noted that the Warkaris, a local community, worshipped a river shrine and were convinced that Dow's activities at the facility would pollute the river and groundwater sources.
Mr. Patil told the U.S. officials that the villagers had learnt about Dow's connections to Union Carbide. He said the approvals Dow had received for the facility related to the manufacture of chemicals, which was at variance with Dow's description of the facility as a scientific research centre.
The Shiv Sena MP also said he had advised Dow to explain the project to the villagers, “preferably through a public relations company that was experienced at this.” However, he lamented, the company had ignored his advice and instead relied on police force and started work at the site.
“Patil noted that it was because of this decision that the Warkaris started protesting and a Dow vehicle was burned,” the cable informed the State Department.
Mr. Patil then reiterated advice he said he had given Dow in July 2008 about hiring a public relations outfit for this purpose — “like the one that the local company Bharat Forge hired when it ran into problems, and give donations to local villagers to resolve the situation.”
On September 29, Rakesh Chitkara, Dow's Head of Corporate Affairs, met Consulate officials (the cable does not name them). He told them that three months earlier, Dow “hired the public relations specialist Patil recommended for USD 20,000 per month.” In parenthesis, the cable added: “Chitkara said that the PR specialist is a ‘close associate' of Patil.”
Dow had also hired a number of local villagers for construction projects, helped refurbish a local school, expanded water services, and acted on a number of other public works projects that were requested in writing by the local village council — all to no effect.
Mr. Chitkara's version was that Dow had met Mr. Patil several times “to clarify issues.”
Patil's denial
However, when The Hindu asked Mr Patil for a response, he characterised the allegations as “101 per cent baseless information.” He said he had opposed the Dow project, which was in his constituency. He also flatly denied he had recommended any PR agency or specialist to Dow: “There is no question of advising Dow on hiring anyone or convincing anyone. I don't know any PR agency and never advised Dow on whom to hire.”
Warkaris meet Pawar
As reported in the press at the time, Warkari leaders had made a representation to Union Minister for Agriculture Sharad Pawar on September 25, only to have their complaints brushed off by the Minister. But when the Warkaris publicly denounced Mr. Pawar and threatened protests against the October 2009 Commonwealth Youth Games in Pune, the senior Union Minister beat a swift retreat.
“Dow representatives” told the Mumbai Consulate officials that Mr. Pawar then instructed Maharashtra Chief Minister Vilasrao Deshmukh to order a halt to the construction and appoint a commission to review the charges. This is what Mr. Deshmukh did.
The commission would be the second to enquire into Dow's Chakan facility; a first commission had already given it a clean chit.
“Dow representatives” further told the Consulate's officials that the Chief Minister also called Andrew Liveris, the global head of the company, “to reassure him about Dow's investments, and said the commission will take two months; Liveris, increasingly frustrated, told Deshmukh that it needs to take less than one month.”
Maharashtra Chief Secretary Johnny Joseph did his bit too. He called Dow (the cable does not say who in Dow) “to express his support but asked for time to defuse the situation.”
Dow CEO Ramesh Ramachandran told Consulate officials (the cable does not specify if they met him with Mr. Chitkara or separately) that the protestors were “seeking a ‘buy-out' but have not ‘ internalised' yet that Dow will not pay.” Mr. Ramachandran said the company was losing $250,000 a month.
The cable said “Dow representatives” (it is not clear if this reference throughout the cable is to Dow officials other than Mr. Ramachandran and Mr. Chitkara) had told Consulate officials that Dow “do not have infinite patience for the political and other problems faced by their business in India.” The company could write off $15-20 million of its investment in the country so far, but feared it would face similar protests and harassment wherever it went, the cable noted.
As it turned out, the second commission cleared the Chakan project. But the protests continued and on September 10, 2010, Dow announced scrapping it. The company returned the land to the Maharashtra government, and said it would scout for an alternative location.
At about the same time its troubles in Chakan intensified in 2008, Dow's troubles with its Gujarat project came to a head. In April that year, Dow Europe GmbH and Gujarat Alkalis and Chemicals Ltd had signed an MoU for a joint venture but unexpectedly, this had to be put on hold.
At his September 25, 2008 meeting with officials of the Mumbai Consulate General, Mr. Chitkara said the investment needed approval from the Foreign Investment Promotion Board (FIPB), which it had expected because both the Gujarat government and the Union Finance Ministry supported the venture.
However, Dow had learnt that the Union Ministry of Chemicals and Fertilisers had put a hold on the project.
“According to Chitkara, however, when agents of Dow met with Union Chemical and Fertilizer Minister Ram Vilas Paswan, he demanded a large sum of money from the company before he would support the project. The company refused to pay and the investment remains on hold.”
Paswan's denial
Asked by The Hindu about the allegation contained in the cable, Mr. Paswan said it was a “total lie.” He said no one from Dow had even met him to discuss the matter. “If they are saying this, they are lying.”
Mr. Paswan added: “The Dow company and Union Carbide are criminals in my mind and I strongly opposed their plans to establish a presence here. That is why they are trying to tarnish my image. The Commerce Ministry gave clearance for the [Gujarat] project without asking us. Our Ministry opposed this because the case of remediation costs for the Bhopal disaster was still unresolved.”
Dow even took its case to the powerful Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia. He offered them sympathy, “but [he was] unable to overcome this opposition.”
Writing on the wall
The Mumbai Consulate was able to read the writing on the wall.
“Clearly,” its confidential cable observed, “Dow has become an easy target for politicians seeking to exploit the company's situation, especially as state and national elections are just around the corner.”
It commented that Maharashtra was run by “a coalition under a weak and ineffective Chief Minister” and the Dow case had presented to opposition politicians “a combination of issues close to the hearts of their voters: land, environment, livelihood, and religious devotion.”
On the other hand, the Mumbai Consulate concluded, Dow just did not get it.
“In relying on the promises of protection of the state, Dow continues to underestimate the political ramifications of the company's connection to the legacy of Bhopal and Union Carbide.”
But the story does not end here.
The Hindu forwarded two questions to the Dow Chemical Company through its Mumbai office.
The first question related to the privileged information provided by American sources that in September 2008, Mr. Chitkara met U.S. consulate officials in Mumbai and reported that the company had hired the public relations specialist whom Shivajirao Adhalaro Patil, MP, had recommended for $20,000 a month to deal with public protests against the proposed Pune project. So what was the name of the PR specialist and for how many months did Dow retain his or her services?
The second question related to information gained from the same sources that Mr. Chitkara had told them Dow was having trouble get FIPB clearance for an investment in a Gujarat state-owned company. What was the name of that company and was FIPB clearance eventually secured? If so when?
The written response from a Dow spokesperson was this: “Like all global companies, it is common for Dow leaders to meet with government leaders and officials wherever we do business and have plans to grow. It is also common for companies to discuss challenges and opportunities related to investment. This is an important part of doing business in any geography. The questions raised by you pertain to US Government's internal correspondence and should be directed to them.”
It sounded very much like the good old runaround.
(With inputs from Meena Menon and Siddharth Varadarajan)
(This article is a part of the series "The India Cables" based on the US diplomatic cables accessed by The Hindu via Wikileaks.) 


(3) Statement by the local NGO issued today in response to the Wikileaks document published in The Hindu newspaper


From: shashi sonawane
Date: 2011/4/1
Subject: Wikileaks vindicates our stand on Dow Chemicals Pune project. Demand Judicial Enquiry - YUVA BHARAT (Shashi Sonawane)
To:  

Friends,
 
The Dow chemicals pune project which was burnt down by the Warkaris under the leadership of Banda Tatya Karadkar Maharaj, respected Kirtankar of Maharashtra has also been legally thrown out and the company has withdrawn from  the said site.
 
However, the skeletons of malpractices, corruption and the political manouvreing capabilities of Dow have now been unearthed thanks to Wikileaks !
 
The latest report published in The Hindu (1st April, 2011) has brought forth the facts which we as agitators were knowing about. The wikileaks has authenticated our information and vindicated our stand.
 
As you all know, since 16th January, 2008 the agitation against Dow Chemicals  so-called R&D project was started by the Shinde Vasuli and surrounding villagers. On that day with the initiative of Lokshasan Andolan, Yuva Bharat, the villagers had formed the "The Bhamchandra Dongar Bachao Warkari Shetkari Sangharsh Samiti" under the leadership of Justice B.G. Kolse-Patil (retd.) and Com. Vilas Sonawane and the construction work was completely brought to halt by the Samiti. On the very same day, Gram Sabha was convened it passed resolution unanimously against the coming up of this project on their village common grazing land.
 
Since 16th January, 2008 to July 25th, 2008 the samiti spearheaded the agitation. The villagers bravely withstood the police atrocities. Finally on 25th July, 2008, the construction work of the Dow chemicals was completely burnt down and destroyed by the Warkaris under the leadership of Banda Tatya Karadkar.
 
During this entire agitation, the role of Shiv Sena leader and local Member of Parliament Shri. Shivajirao Adalrao Patil had been suspicious. Apparently he took position against the project under the pretext that the Dow chemicals was not taking people into confidence (read he was not taken into confidence). To increase his nuisance value he had even held 3-4 meetings in the village. Since the role of Shiv Sena for past 40 years has been that of sabotaging peoples' agitations, the villagers did not give any response to him. The villagers did not even attend his meetings !
 
It is obvious that the authorities and the who's who in the administration were bent upon to speed up the construction fo the project. Of course each carried a price tag. The wikileaks has exposed the well known nexus of the US administration with Dow  Chemicals and the Indian administration. Right now we have come to know only about Adalrao Patil's PR price tag of $20,000 per month which he has promptly denied. The wikileaks India cables have also exposed the role Ram vilas Paswan the then Minister for Chemicals and Fertilizers, in connection to this project as well as Dow's Gujarat project. It has also exposed the eagerness of the state govt tosupport Dow. The role of Johny Joseph, the then Chief Secretary of Maharashtra Govt. needs to probed.
 
Dow chemicals is notorious for its influence over the governments. It has been successful in making its way by pocketing bureacrats and politicians. The wikileaks cables have brought this fact into public domain with reference to India.
 
We demand independent Judicial enquiry to probe the possible kickbacks, the unwarranted interests shown by Shri. Adalrao Patil, the local Shiv Sena MP and State and Central Administration's undue eagerness to support Dow Chemicals especially the role of Shri. Ram Vilas Paswan, the then Union Minister for Chemicals & Fertilisers and Shri. Johny Joseph, the then Chief Secretary of Maharashtra. 
 
In Solidarity,
 
Ha.Bha.Pa. Shri. Banda Tatya Karadkar Maharaj
Adv. Datta Patil (President, Mahamumbai Shetkari Sangharsh Samiti)
Com. Vilas Sonawane (One of the leader of Anti- Dow agitation)
Adv. Meghnath Patil (Working President, Mahamumbai Shetkari Sangharsh Samiti)
Adv. Dhananjay Patil (Secretary, Mahamumbai Shetkari Sangharsh Samiti)
Shashi Sonawane (National Convenor, Yuva Bharat)
 
 

November 18, 2009

life in financial markets: rare action against listed companies


Securities market regulators, including stock exchanges that regulate their intermediaries and issuers, tend to show weakness when it comes to non-compliance of disclosure or any other rules of a stock exchange.


In India, although cases (occasional or frequent or a bit of both, I don't know) of delayed, improper, misleading disclosures by listed companies happen, the National Stock Exchange and the Bombay Stock Exchange have never imposed a hefty monetary penalty on any of their listed companies that will send out a clear message to future potential miscreant companies.

No wonder then I was pleasantly surprised yesterday in learning that London Stock Exchange
(LSE) imposed an unprecedented amount of monetary penalty on one of the companies listed {Regal Petroleum, see its price graph below (click on image to see it enlarged & clear)} on


its Alternative Investment Market (AIM). Read LSE's official press release below.


The real challenge before LSE, however, is to keep an intense eye on what their Main Market listed companies. The AIM is for small and medium companies and the Main Market has all the biggies. It is easier to go after the small fish. Therefore, a standing ovation beckons a stock exchange that dares to go after the big fish.

Of course, if there are no violations by any of the big companies then what can you do? But that is an illusion created by the strong lobby groups these big companies manage to create and successfully use in excessively influencing government ministers and regulators' chiefs. You just have to look at India's one-year old Satyam Computers case to see how not a single rupee or dollar fine has been imposed yet by Sebi on the company for rigging its accounts and inflating its profit figures for 3-5 years.

Here then is LSE's press release of yesterday:


17 November 2009

REGAL PETROLEUM PUBLICLY CENSURED AND FINED £600,000

("Regal" or "the Company"). These sanctions were imposed by the AIM Disciplinary Committee for numerous, serious breaches of the AIM Rules in connection with its oil exploration wells in the The London Stock Exchange today issued a public censure and fine of £600,000 against Regal Petroleum plcKallirachi Prospect, an area in the North Aegean Sea.

On 11 separate occasions, Regal failed to take reasonable care to ensure that its announcements were not misleading, false or deceptive, and did not omit material information. On two occasions, Regal also failed to release price sensitive information without delay.

In particular, Regal contravened AIM Rule 9 (equivalent to the current AIM Rule 10) by:

using language in its announcements that created a misleading impression as to the potential commercial viability of the Kallirachi Prospect;
being over-optimistic in the information it notified, focussing on the higher end of expectations without adequate explanation of this fact, and omitting an adequate description of the risks associated with the Prospect; and
not accurately reflecting in its announcements the test results from the Kallirachi wells or the conclusions of independent experts on which the announcements were based

In contravention of AIM Rule 10 (equivalent to the current AIM Rule 11), Regal failed to announce without delay poor test results and the plug and abandonment of the two wells drilled within the Kallirachi Prospect.

Nick Bayley, Head of UK Regulation at London Stock Exchange Group, said:

"Today's public censure and fine closes an exceptional case in AIM's history. It is unprecedented in terms of the seriousness of the rule breaches involved and the resultant market impact. These factors contributed to the AIM Disciplinary Committee's decision to impose the highest fine in AIM's history.

"Following an investigation by the Exchange and the FSA, the Exchange's action was contested by Regal, resulting in lengthy disciplinary proceedings. Today's action demonstrates that the Exchange takes the accurate and timely disclosure of price sensitive information by quoted companies very seriously. Whatever the size, profile or complexity of the breach, the Exchange is prepared to take firm action against companies that fall short of the required standards."

Full details of the breaches can be found in the censure.
- ends -
For further information please contact:
Patrick Humphris / Alastair Fairbrother
Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com

Background to Regal Petroleum:
Regal Petroleum, a company focussing on exploration, development and production of oil and gas assets in various countries including Greece, Ukraine and Romania, was admitted to AIM in September 2002.
Relevant Regulatory Provisions:
All references to the AIM Rules in today's censure are to those in effect at May 2003. While the AIM Rules were amended during the Relevant Period, the rules that are the subject of this censure remain unchanged, other than in respect of their numbering. The equivalent rules currently in force are Rules 10 and 11 of the AIM Rules for Companies, June 2009:
AIM Rule 10
The information which is required by these rules must be notified by the AIM company no later than it is published elsewhere. An AIM company must retain a Regulatory Information Service provider to ensure that information can be notified as and when required.
An AIM company must take reasonable care to ensure that any information it notifies is not misleading, false or deceptive and does not omit anything likely to affect the import of such information.
It will be presumed that information notified to a Regulatory Information Service is required by these rules or other legal or regulatory requirement, unless otherwise designated.
AIM Rule 11
An AIM company must issue notification without delay of any new developments which are not public knowledge concerning a change in:
♦ its financial condition;
♦ its sphere of activity;
♦ the performance of its business; or
♦ its expectation of its performance,
which, if made public, would be likely to lead to a substantial movement in the price of its AIM securities.

December 08, 2008

life in general&financial markets: terrorism of companies

Just like religious extremists get misled on 'religion' and become terrorists, the ultra-affluent industrialists and companies get misled on 'development' and become terrorists.

See how the so-called largest democracy on Earth, India, treats any one who campaigns for human rights and environmental rights -- click here. The guy in the video is shown chained to a hospital bed after being arrested for campaigning against the illegal eviction of villagers/tribals and others and illegal environmental pollution at the Posco manufacturing sites in Orissa. (the pic below is a snapshot from the youtube video whose link I have given above)
One mainstream media newsreport on it here. Tehelka, a mainstream publication but not afraid to write about the issues affecting tribals and adivasis of India had written about Abhay Sahoo about a month back -- see here. The police, acting on behalf of the state that in turn is acting on behalf of the company, claims that Sahoo has indulged in various law-breaking acts. My take on this is: surely, no mass leader will be free of some acts that won't be legal in the strict sense but the punishment has to fit the nature of the crime and the other activities of the person. Nelson Mandel was too known to have been a bit violent at the beginning of his fight against apartheid in South Africa. Of course, most mass leaders also later realise the futility of most kinds of violence and shun it but thats a process of learning.

But the bigger point is that the companies in India are getting away by violating any law and every law, enivronmental, civil or criminal. The police looks away and does nothing because the state deliberately does not want to invoke the law against the companies. Why are company chiefs and chairmans such as Mukesh Ambani and Ratan Tata never chained and handcuffed? Does this not shatter the illusion that democracy in India is for all its people? Well, Indian democracy is only for a few as I said in an earlier post.

The anti-Posco people's movement leader, Sahoo, has been a member of the Communist Party of India. I rate the communist parties of India as bad or not-so-bad as any other party in India including the BJP. Communism, capitalism, socialism are all isms that many people choose to categorise themselves in. But ultimately its about the greed and excessive ego of people in power and people with influence that determines whether this ism or that ism will bring more good or more harm to Earth and its inhabitants.

Here's some more on the Posco steel company's matter in Orissa followed by another similar matter of tribals (adivasis) being the victims of companies-state terror in Jharkhand:

1)
From: Campaigns and Advocacy Desk - TOM

Date: 2008/12/8
Subject: Please Endorse: Appeal Letter To Orissa Governor Demanding Proper Treatment to Abhay Sahoo & Other PPSS Leaders
To:
Dear Friends,
As you might aware, Abhay Sahoo, one of the prominent leaders of the anti POSCO movement in Orissa was arrested on 12th October 2008 under various false charges. Abhay Sahoo who is diabetic and has blood pressure problems had to be admitted to Cuttuck Medical College hospital on 3rd December 2008. Despite his fragile health condition State is continuing with its inhuman atrocities even in hospital. On the pretext of non-availability of bed in the hospital, Abhay Sahoo whose condition is critical has been kept on the floor and he has been handcuffed and chained. He is being treated like a dreaded criminal.
This calls us to come together and show our solidarity with these movements and strongly demand from State to act sensibly by respecting people’s rights. This Appeal letter written to Orissa Governor demands to stop continued harassment of Shri Abhay Sahoo and other POSCO Pratirodh Sangram Samiti leaders in Jail, ensuring immediate proper medical care of Abhay Sahoo and withdrawal of false cases against POSCO Pratirodh Sangram Samiti activists.
Please send your endorsement by tomorrow afternoon.
In solidarity
Bipin Kumar

To
Shri Murlidhar Chandrakant Bhandare
Governor of Orissa
Raj Bhavan
Bhubaneshwar

Sub: Appeal to instruct Orissa Government to stop its continued harassment of Shri Abhay Sahoo and other POSCO Pratirodh Sangram Samiti leaders in Jail, ensuring immediate proper medical care of Abhay Sahoo and withdrawal of false cases against POSCO Pratirodh Sangram Samiti activists

Dear Sir,
We are writing to condemn the continued imprisonment of Shri Abhay Sahoo, leader of the POSCO Pratirodh Sangram Samiti (PPSS) and other six PPSS leaders on account of several false cases in order to suppress anti POSCO people’s movement in Jagatsinghpur District. As you might be aware, tens of thousands of people in Jagatsinghpur District, Orissa, have put up an exemplary, ‘non-violent’ resistance for the past three years against forcible take-over of their lands and resources by the Korean steel giant POSCO. The state’s dubious plans to build a mega steel plant on their lands will not only devastate the sustainable livelihood systems of thousands of local people; it will also pauperise many more lakhs considering the port and iron-ore mining necessarily associated with the project.
State repression on the movement started right from the day one and it reached a high point when the president of PPSS, Abhay Sahoo, was malafidely arrested on 12 October 2008 evening near Paradip. Now even after period of nearly two months there has been hardly any progress on litigation part. Clearly Orissa Government in synchronization with POSCO is trying to delay judicial proceedings to languish Abhay Sahoo and others for longer period of time with these unjustified and unfair legal tactics. One can understand these legal maneuverings with the fact that State is still piling false cases against these leaders, allegedly very recently six new cases has been framed against Mr. Sahoo.
Sir, its not only that State is employing legal plotting to defame and unjustly detain Abhay Sahoo and others in order to silence people’s voice but dangerously they are also playing with lives of these protestors who are in jail, especially with the life of Abhay Sahoo. It’s a fact that Abhay Sahoo was arrested while coming back from hospital after attending his on going treatment sessions. After his arrest, due to deliberate negligence of his fragile health status on the State part he is under consistent life threat. Only after his health status turned from bad to worst jail authorities bother to admit him to hospital on December 03, 2008. Apart from other health problems Mr. Sahoo is acute diabetic and patient of blood pressure. Even in hospital Police is continuing with their inhuman atrocities, not only he has been kept on the floor but also Mr. Sahoo has been handcuffed and chained like a dreaded criminal.
We therefore call upon you to ensure:
· Ensuring human treatment and immediate arrangement of proper medical facilities and care for Mr. Abhay Sahoo
· Immediate release of Mr. Sahoo and all other arrested PPSS leaders and withdrawal of false cases framed against them
· Restraining Police from carrying their physical and mental atrocities with these leaders
Prosecution of all those responsible for human rights violation of these leaders
Sincerely,

2)
From: Campaigns and Advocacy Desk - TOM
Date: 2008/12/8
Subject: Against unlawful police firing on peaceful demonstration in Dumka
To:
Action Alert: Police firing against peaceful adivasis protestors in Jharkhand : Write to CM & NHRC
by Mukta Srivastava, 6 December 2008
Voice your protest
Write to the Jharkhand CM and NHRC
Against unlawful police firing on peaceful demonstration in Dumka
Against unjust corporate-led mass displacement of adivasis
We, members of people’s movements unequivocally condemn the unlawful obstruction of the peaceful protest of 7000 adivasis from the Dumka region in Jharkhand and the police firing unleashed against them today afternoon at Kathikund that has left 5 people battling for their life. We are receiving messages from Jharkhand that even now the firing is on and the situation is quite tense and Section 144 has been clamped in the area.
The adivasis in the Dumka region of Jharkhand have been struggling against the plunder of natural resources and destruction of livelihoods by the giant mining corporates and are asserting their right to community control and ownership over their resources, including land, water, fish, forests and minerals. They started a new phase of their Satyagraha today, which also took the form of a Jail Bharo Rally, strongly protesting against this unjust displacement and the false cases being foisted against the local activists and movement leaders, including Amelia Hansda of the Jharkhand Ulgulan Manch Leader and National Convenor, NAPM.
It is notable that in addition to the two strong people’s movements in the region, including the Jharkhand Ulgulan Manch (JUM) and Jharkhand Hulgulan Mahila Manch (JHMM), the mass movements of the local adivasis with local leadership, the Gram Sabhas of the regions, which repeated denied land for acquisition through oral and written means were also fully involved in organizing the non-violent demonstration.
Many leaders of people’s movements, including National Convenors of the NAPM had very recently written to the CM of Jharkhand to take a firm position against the unjust displacement of the people by holding a conclusive and intensive dialogue on the issue and ensuring that all the due process as enshrined under the Constitution and the PESA Act are implemented.
We mark this day of violence and repression as one more Black Day in the history of peaceful people’s struggles in this country agitating for a constitution-based movement for basic rights and call upon all progressive minded individuals and groups to strongly condemn the unlawful corporate-state tyranny.
Mukta Srivastava, Anand Mazgaonkar, Simpreet Singh, Shrikanth