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DownToEarthSCIENCE AND ENVIRONMENT FORTNIGHTLY

1-15 MARCH, 2015

SCIENCE AND ENVIRONMENT FORTNIGHTLY Subscriber copy, not for resale `45.00

Biotechnology industry is growing like never before. Can the sector maintain its bull run?

Boom or bubble

01Cover.indd 7 23/02/15 4:34 PM

march15, 2015 Down To Earth IFC

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BUDGET 2015, presented by Finance Minister Arun Jaitley, has a first. In it, India has accepted that it has a de-facto carbon tax—on petroleum products and dirty coal. Arguably, the only big green initiative of this budget is the increase of cess on coal—from `100 per

tonne to `200 per tonne. But the question is: is this carbon tax, imposed on the carbon content of fuel, doing what it should—reduce greenhouse gas emissions that are responsible for climate change? In other words, is there a design behind the carbon tax to ensure we move beyond polluting fossil fuels?

The budget follows from the Economic Survey, which states that high price on diesel and petrol are important price signals to limit con-sumption and, hence, CO2 emissions. In 2014, taking advantage of the global fall in fuel pric-es, subsidy or under-recovery has gone and the government has increased excise duty on both petrol and diesel. So even though fuel is cheap-er, the tax component is higher. The Economic Survey estimates that based on emission fac-tors, currently, India imposes an implicit carbon tax of US $140 per tonne of CO2 on petrol and US $64 on diesel. This is substantial.

The Economic Survey also estimates that the cess of `100 per tonne of coal is equivalent to a carbon tax of US $1 per tonne of CO2. It argues that this cess should be increased so that it can lead to CO2 reduction and also better reflect the health cost of emissions from coal-fired power plants. It calculates that a three-fold increase from the current rate would lead to an annu-al CO2 emission reduction of 129 million tonnes—this is equal to seven per cent of India’s current emissions. A five-fold increase in the cess would equalise price of domestic coal with international and would contribute to annual CO2 emission reduction of 214 million tonnes, which is 11 per cent of India’s annual emissions.

In budget 2015, the finance minister has opted to take the slow road and has doubled the cess on coal to balance the need to tax pollution and the price of power in his words. He also mentions that India’s de-facto carbon tax on most petroleum products compares with international norms. But is this tax an adequate signal to bring about change?

Let’s take petrol and diesel. The fact is that the government has increased the tax on fuel because it is convenient. It will be important

to maintain this “carbon tax”, even when the price of petrol and diesel increases in the international market. But it is also a fact that the price of these fuels is lower today and as far as the consumer is con-cerned, the signal to change consumption is weak and inadequate.

Therefore, not only does the government require to tax these polluting fuels, it also requires to use the tax funds and much more to provide infrastructure to wean us away from cars or using roads to transport goods. What is bad is budget 2015 is doing the re-verse. It says it will set aside ̀ 4 per litre of the excise duty on petrol

and diesel for a dedicated road cess. This tunnel vision of viewing infrastructure for transport as just “roads” is regressive. Instead, what is needed is to reinvent mobility so that it moves goods and people, and not vehicles. The fact is that budget 2015 has recognised that this excise duty is a car-bon tax, which is putting a price on each tonne of CO2 emitted. Now this tax must be used to help shift to less carbon-intensive ways of production.

We also know that the health costs of air pollution are very high. Budget 2015 does little to address this concern. It does not say that the excise duty collected on dirty fuel will be used to upgrade refinery technology so that we can get clean fuel and breathe easy. It is also a fact that

even though the government is no longer subsidising diesel, its price remains lower than that of petrol, mainly because of differential levels of taxation. So, even though there has been a decline in the number of diesel private cars being sold, it is not enough to make a dent in pollution levels. Therefore, what is needed is to tax diesel ve-hicles to equalise the price differential.

This is also the case with coal cess. The government now aims to use this cess to clean the Ganga or build toilets. All this is important but takes us away from the objective of moving away from using pol-luting fuels or cleaning emissions from thermal power.

What is needed is to walk the talk. Not just talk the talk.

WALK THE TALK ON CARBON TAX,

MR FINANCE MINISTER

www.downtoearth.org.in 3 1-15 MARCH 2015

03Editors.indd 3 02/03/15 12:59 PM

SCIENCE AND ENVIRONMENT FORTNIGHTLYDown To Earth

WHAT'S HOT

O N T H E W E B

FOUNDER EDITOR Anil Agarwal

EDITOR AND PUBLISHER Sunita Narain

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ASSOCIATE EDITORS

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vol 23, no 20; Total No of pages 60Editorial, subscriptions and advertisements: Society for Environmental Communications, 41, Tughlakabad Institutional Area, New Delhi 110 062, Phone: 91-11- 29955124, 29956110, 29956394, 29956399 Fax: 91-11-29955879. Email: [email protected] © 2005 Society for Environmental Communications. All rights reserved throughout the world. Reproduction in any manner is prohibited. Printed and published by Sunita Narain on behalf of Society for Environmental Communications. Printed at International Print-o-Pac Limited, B-204, 205, Okhla Industrial Area, Phase I, New Delhi-110020 india and published at 41, Tughlakabad Institutional Area, New Delhi 110 062.To subscribe, sms 'dte Subscribe' to 56070

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COVER DESIGN Ajit Bajaj

COVER ILLUSTRATION Tarique Aziz

Down To Earth editorial does not endorse the content of advertisements printed in the magazine www.downtoearth.org.in

Down To Earth explores how India's biggest financial policy document has evolved over the years. Since it was first presented for the period August 15, 1947 to March 31, 1948, the budget has reflected concerns and priorities

of many policy makers, ranging from measures to enhance foodgrain production and industrial growth to boosting economic liberalisation, incentives for software exporters and social spending.

What the Aam Aadmi Party has promised in its manifesto for a clean and green Delhi

INFOGRAPHIC

BLOGSPECIAL FEATURE

67 years of budget-making

Decoding Aam Aadmi Party's manifesto

Unlike Delhi, Turkey's largest city Istanbul has been designed for people, not cars, says Anupam Srivastava

Union Budget 2015-16The first full-fledged budget of the Narendra Modi government has come after promises of a "transformational" policy document. A cse-dte virtual roundtable along with experts in the field analyses what the budget has to offer for inclusive growth and sustainable development.

SPECIAL COVERAGE

On web Biggest solar plant in Northeast begins power generation

On Facebook Sea that isn't

On Twitter Jan Dhan Yojana: the fine print Modi did not disclose

POPULAR

4 DOWN TO EARTH 1-15 MARCH 2015

04web and credits.indd 4 23/02/15 4:36 PM

Need holistic approach to scienceThis is with regard to "Real pride of ancient Indian science" (January 16-31, 2015). The linking of science and culture by political parties should not be dismissed as a political or Hindu nationalist party tactic. The issue has unintentionally increased peoples' awareness of the linkages between the various fields of study in ancient India. The awareness that arts and science in ancient India were interlinked is critically needed today because science has become over-specialised and heavily partitioned. Also, the average Indian lacks national pride and self-esteem because of being

Environment-related Acts are outdatedThis is with reference to "A continuing disaster" (December 1-15, 2014). Having been involved in the drafting process of various Acts on air, water and environment protection, I would like to make a few points. Unlike what the magazine says, pollution control board officials can enter a polluting establishment anytime and tell the owner that a sample needs to be collected. No previous intimation is needed.

I agree that there is a need to review these Acts since they were drafted decades ago, when the level of industrialisation and environmental problems were very different. With regard to the penalty of ̀ 10,000 prescribed by the Water (Prevention and Control of Pollution) Act, I agree the fine is too low.

The story also says that health impacts of methyl isocyanate (MIC) are not known. This is incorrect. US government's National Institutes of Health sponsored a study on the health effects of MIC at the Michigan State University and the University of Saskatchewan, Canada. The study says inhalation of MIC damages lung tissues, and can cause pulmonary edema, asphyxiation and death. When MIC concentration exceeds 21 ppm, it results in the burning of lung tissues.

D M DAVElett

ers

Statement about ownership and other particulars about Down To Earth, required to be published under Rule 8 of the Registration of Newspapers (Central) Rule, 1956

FORM IV (See Rule 8)1. Place of publication : New Delhi2. Periodicity of publication : Fortnightly3. Printer’s name : SUNITA NARAIN Whether citizen of India : Yes If foreigner, state country of origin : Does not apply4. Publisher’s name : SUNITA NARAIN Whether citizen of India : Yes If foreigner, state country of origin : Does not apply Address : A-17, Green Park New Delhi-110 0165. Editor’s name : SUNITA NARAIN Whether citizen of India : Yes If foreigner, state country of origin : Does not apply Address : A-17, Green Park New Delhi-110 0166. Names and addresses : Owner of individuals who own the newspaper Society for Environmental partners and shareholding more than Communications one per cent of the total capital 41, Tughlakabad Institutional Area, New Delhi-110 062I, Sunita Narain, hereby declare that the particulars given above are true to the best of my knowledge and belief. Sd/- SUNITA NARAINDated: 1st March, 2015 (Signature of publisher)

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05-07Letters.indd 5 20/02/15 3:34 PM

unaware of our rich past. India's decline in the scientific arena today is because it has fallen from being a wisdom-focused society of the Vedic times to an information gobbling/generating society of today.

Consider the healthcare sector. The multitude of problems that ail the sector today are mainly due to our focus on super-specialisation approach to treatment. Such an approach might lead to success but causes many side-effects. Indian Vedic scholars and seers took a holistic view of science or arts. Politicians today may have touched upon irrelevant,

superficial science areas in the debate, but it is a blessing in disguise because we need all the best practices from the past to solve the problems of today. We need Indians, especially the younger generation, to realise that people of those days came up with truly sustainable solutions, living on miniscule resources.

This will also make them think how they can develop such simple, holistic and eco-friendly solutions to solve socio-environmental problems prevailing today and improve the state of science in the country.

BHARATH KUMAR K

* We may continue to glorify the past achievements, but must simultaneously undertake research to establish the claims made in the ancient times. The findings must be put in public domain. Our universities, research organisations and academic institutions should accept the challenge. To improve the level of science and technology, our universities should make their research works available to everyone. The University Grants Commission can set up a portal where research topics, findings, names and contact details of scholars and guides associated with the

lett

ers

The Bihar government has banned the use of plastic packaged water in all its departments with immediate effect. How effective will it be?

http://www.facebook.com/down2earthindia

This is a great move, but now how will the people of Bihar as well as visitors get drinking water?

JAYANTA CHOWDHURY

It should be implemented all over India.KANNAN KSUNDARAM

Hope this will sustain and not fizzle out.SUMAN KUMAR

A question: how will water be bottled now? Not that I support exploitation

of a resource that should be freely available.

MACDONALD DONBOKLANG SUNN

The government has banned use of plastic bottles in its department..It is not for the complete state...

MANISH KUMAR

Lots of applause for the Bihar Government. Please be honest. No mess this time. Good luck.

KULDEEP BENIWAL

TARI

QU

E AZ

IZ /

CSE


05-07Letters.indd 6 20/02/15 3:34 PM

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Our school is located in a quiet, serene and eco-friendly environment where there is nothing that would disturb the tranquility of our life.

KLR Avenue, the place where the school is situated, is just 90 km from Vijayawada, and 160 km from Hyderabad.

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study are listed. This will help scholars and industries use the findings for further research.

K G VYAS

Tomato seeds going waste"Rotten tomato for Monsanto" (January 16-31, 2015) clearly exposed Monsanto's double standards while dealing with patent pertaining to natural tomato and its resistance to a fungal disease called botrytis. The author touched upon a subject whose potential is enormous. I would like to draw attention to another related issue.

Tomato seed and peel are waste products of the tomato ketchup industry, but only a small portion of the seeds is being utilised for regeneration purposes. The remaining is used as animal and bird feed or thrown away as waste. The seed constitutes about 0.05 per cent of the whole fruit. The annual production of tomato in India is about 3 million tonnes. About 15,000 tonnes of tomato seeds with a potential of 3,000 tonnes of tomato seed oil could be produced in the country every year. The technology of seed extraction and refining of tomato seed oil has been perfected by the Oil Technological Research Institute in Anantapur, Andhra Pradesh. Tomato seed oil is similar to sunflower seed oil in taste and has nutritional value.

G AZEEMODDIN

Icons of old wisdom The article "Digging their destinies" (January 1-15) is a heart-warming story, especially for people living in rural areas and staunch environmentalists. Himachal Pradesh has been through a situation similar to that faced by Vidarbha. When campaign for piped water started in Himachal in 1977, little did the protagonists of the campaign care about existing water bodies like ponds, johars, baolies and wells. Instead, these sources were condemned as carriers of water-borne diseases. The departments of water supply and public health went to the extent of publicly dissuading people against consuming water from these sources. As a result, all traditional

water bodies fell into disuse for want of maintenance. But within the next 20 years, piped water became insufficient to meet the needs of the people as well as cattle. Good sense then prevailed and the old water bodies were revived (some are still being revived). Also, new water harvesting structures are coming up as per the government's new water policy. This makes sense. We are rightly going back to these traditional water sources which are icons of traditional wisdom.

L R SHARMA

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SHOLAI SCHOOLLocated in the campus of the Centre for Learning, Organic Agriculture and Appropriate Technology, in a beautiful sylvan valley of the Palani Hills, we are a non-conventional, 70 acre residential School registered with the University of Cambridge International Examinations (IN499). The students take IGCSE (Xth standard) and A level exams. Having a teacher : student ratio of 1:6 we are able to explore learning well beyond the confines of syllabi.

Comprehension of conditioning and its limiting effect on the mind and reflecting on responsibility and sensitivity in relationships are some of the themes explored between students and teachers. Send for brochure to:

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For trade enquiriesThe United Nilgiri Tea Estates Co. Ltd.,Chamraj Estate, The Nilgiris - 643 204, India

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The Bhoomi CollegeThe Bhoomi college requires a farm manager for their Organic Farming Gurukul near Bengaluru. Candidate must enjoy rural living and community building and have minimum 3 years of organic farming experience. Must know Telugu /Tamil / Kannada.Contact: [email protected]

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05-07Letters.indd 7 20/02/15 3:34 PM

cont

ents

28

26

11

THE FORTNIGHT

Survivor, yet victimAcute encephalitis syndrome can lead to disability in children who have survived the disease

Few hits, too many misses

Despite the right diagnosis, NDA's first full budget gives many

important sectors a miss

Bill with holesA new law passed by Karnataka to save its lakes has glaring shortcomings

A link to disaster

The ambitious project to connect the water of

Narmada river to the Malwa plateau is as impractical as

it is expensive

Mind the minesThe new mining ordinance aims to reform the mining

sector, but it is silent on strengthening regulatory

institutions and mechanisms

Biotech boomWill the thriving biotechnology

sector in India prove to be a mere bubble?

COVER STORY

20

22

14


08-09Contents.indd 8 02/03/15 1:50 PM

58

44

46

Winged nuisancePigeons have become a menace in many parts of the world

WILDLIFE

ANALYSISGenes as

cancer cure Personalised cancer treatments target a

patient's genetic code

Livestock losing home

Agriculture and mining are destroying grazing

lands in Rajasthan

HEALTH

42

No beginning, no end

A new study questions the Big Bang, the

most prevalent theory on the

origin of the universe

Climate test Will India buckle under Western pressure on capping agricultural carbon emissions?

SCIENCE

OPINION

48

51

52

Chasing jobs Modi government has no agenda to create jobs for

India's unemployed youth

56

For the women, by the womenA community initiative gives speedy insurance benefits to women during emergencies

41

36

Cushion for the backA plucking basket with improved features will ease body pain of tea garden workers

Pressure on plateauChina is responsible for the gradual degradation of Tibetan landscape, says Canadian author Michael Buckley

TECHNOLOGY

INTERVIEW

GOOD NEWS

46

42

When biodiversity eats into profit Fearing loss in business, manufacturers of traditional Indian medicines protest royalty

A medical gambleIndividual medical studies have to be independently verified to ensure accuracy of the findings

Winged nuisancePigeons have become a menace in many parts of the world

COLUMN

54

gobartimes

20-PAGE DTE SUPPLEMENTW I T H S U B S C R I P T I O N C O P I E S

59-78Supplement Editor: Souparno Banerjee Copy: Prachi Guron, Ajanta SikdarDesign: Kadambari Misra, Surender Singh

www.downtoearth.org.in 9

08-09Contents.indd 9 02/03/15 1:00 PM

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T H E F O R T N I G H T

200 million tonnes or more of fertiliser would be used

globally in 2018

Encephalitis could lead to disabilityC H I L D R E N W H O have survived brain fever or Acute Encephalitis Syndrome (aes) are more prone to mental and physical disability, say researchers from the All India Institute of Medical Sciences and Unicef in Patna, Bihar.

In a first study focusing on survivors, researchers found that out of the 33 aes survivors in Muzaffarpur district, 16

showed disability of various magnitudes. The team suggests that these children might have suffered damage in the veins of their brain that could have led to minor to severe paralytic attacks. The findings, which will be released soon, are expected to force the state government to improvise the treatment given to children suffering from disability due to aes.

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Source: World Fertilizer Trends and Outlook to 2018, Food and Agriculture Organization

11-13The Fortnight.indd 11 23/02/15 4:37 PM


A L A N D S L I D E in the Kargil region of Jammu and Kashmir created a pile of debris on Phutkal river, blocking its course and resulting in accumulation of water. With the snow melt season round the corner, the Centre, fearing flash floods, is planning to blast the debris to create

a channel for flow of water. This was proposed at a meeting chaired by Union minister of state for home affairs, Kiren Rijiju, to assess the risks posed by the landslide. The length of the artificial lake is 15 kilometres, having approximately 24 million cubic metres of water.

Global sea ice is decreasingS E A I C E is being lost at an average rate of 35,000 square kilometres a year since 1979, according to nasa. This is despite a rise in Antarctic sea ice. Claire Parkinson, a climate scientist at the Goddard Space Flight Centre who has conducted the study, explains this is because the decreases in Arctic sea ice far exceed

the increases in Antarctic sea ice. Her analysis of global sea ice from November 1978 to

December 2013 shows that the trend in ice extents was downward in all months of the year. The study has been published in the Journal of Climate.

Kargil landslide dams river

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11-13The Fortnight.indd 12 23/02/15 4:37 PM


U N I O N A G R I C U L T U R E Minister Radhamohan Singh has promised to release drought relief funds for Maharashtra at the earliest. As many as 9 million farmers in the state have been affected by drought till date. Marathwada and Vidarbha regions are the worst-affected, with kharif crop in these areas completely destroyed. In November last year, the state had asked for a drought relief package of ̀ 4,000 crore. The state is also experiencing hailstorm and rain in other parts.

T H E I N T E R N A T I O N A L Atomic Energy Agency has applauded Japan's efforts to decommission the Fukushima Daiichi Nuclear Power Station, which was responsible for the nuclear disaster in the country in March 2011. However, the agency says that the situation remains

complex. While increasing amount of contaminated water poses a short-term challenge, removing highly radioactive spent fuel, including damaged fuel and fuel debris, from the reactors that suffered meltdowns poses a major long-term challenge.

T H E T A M I L Nadu government has taken up a study to determine the population of wild boars in the state. There have been repeated complaints from farmers about wild boars uprooting their crops. Frustrated at the loss, the farmers have also demanded culling of wild boars. The study is expected

to be completed by March. In 2012-13, 290 cases of crop damage due to attacks by wild boars were reported in the state. In 2014, the number of cases rose to 350. Consequently, the compensation paid by the forest department to farmers increased from `26 lakh in 2012-13 to ̀ 32 lakh in 2014.

"Some of the neglected tropical diseases are no longer strictly tropical. The potential for spread provides yet another strong argument for making investments"Ð Dirk Engels, director, WHO Control of Neglected Tropical Diseases Department

Fukushima challenge

Will Tamil Nadu cull its wild boars? Control over mapsThe survey and mapping industry has demanded easy clearances of maps. At present, the control over maps rests with the defence ministry for security reasons. But as the topography of restricted areas can now be seen online, the industry says the monopoly is redundant. Its recommendations have been submitted to the Centre. Another reason for the demand is to make maps easily accessible to the public. The industry has also proposed a shift from 2D maps to 3D maps to reduce costs and the time taken to make calculations for new projects.

Maharashtra awaits drought fund VERBATIM

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11-13The Fortnight.indd 13 23/02/15 11:43 AM

B U D G E TB U D G E T

Whose budget is it, Mr Jaitley?Being the first full year budget of the National Democratic Alliance government, there was expectation that the finance minister's announcements would usher in a new era in the fields of renewable energy, rural development, healthcare and agriculture. But the budget has left a lot to be desired in these areas. One area it does well is in granting more financial autonomy to states. However, it remains to be seen how smoothly the new arrangement works. A Down To Earth analysis on what lies ahead

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14-19Budget.indd 14 02/03/15 1:49 PM

B U D G E T

THE MOST definite message that Union Finance Minister Arun Jaitley gave out in budget 2015-16 was that the Centre will share funds for development schemes with states, but the autonomy which states have been demanding for decades will come at a cost. The budget, as well as the decisions taken by the National Democratic Alliance in the run up, show that the Centre is willing to fund states if they are ready to take responsibility for implementing schemes effectively.

It is pouring money for states. Just days before the budget, the government accepted the 14th Finance Commission recommendation that awarded 42 per cent of the Central tax pool to states, an increase of 10 per cent from the current share. This means states will get `5.24 lakh crore in 2015-16. An additional `3.04 lakh crore will be given to states through grants and plan transfer (see ‘States at centre’).

But with money comes responsibilities. The Centre has decided to retain support for programmes that are a national priority, such as poverty alleviation, while giving states the responsibility to implement others with yet-to-be-finalised budget-sharing mechanism.

The Central government will stop funding eight programmes, including the Backward Region Grant Funds in operation in 250 districts and the National Mission on Food Processing. It will support 31 Centrally-sponsored schemes while 24 will be implemented with states bearing more costs. Under this new mechanism, programmes such as the National Rural Drinking Water Programme and Swachh Bharat Abhiyan will be funded by the Centre and programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (mgnregs) will continue to get full Central assistance.

This change in stance of the Centre was reflected in Prime Minister Narendra Modi’s recent letter to chief ministers in which he said: “In this overall context, when you are flush with resources, I would like you to have a fresh look at some of the erstwhile schemes and programmes supported by the Centre. States are free to continue or change these schemes and programmes as per their discretion and requirement.”

But will the states be able to handle this deluge of resources? They may be rejoicing at this windfall, but their worry starts from here. With massive funds, states need to urgently set up the institutional mechanism to manage this responsibility. They have been grappling with unspent budget allocations for various social sector programmes. One of the reasons for this is the absence of capacity at the states’ level to implement programmes. As currently most development programmes are routed through the panchayats, states need to increase institutional capacity of the local bodies in a big way. States and panchayats continue to fight each other over delayed

States have got an unprecedented share in the Central tax pool

States at centre

Gross Tax receipts

`1,449,490 cr

States' share

`5,23,958 cr

Central government share

`9,19,842 cr

Industry representatives listening to the budget speech in Delhi on February 28

Source: Union budget 2015-16


14-19Budget.indd 15 02/03/15 1:49 PM

B U D G E T

release of funds for programme implementation as well as states refuse to depute functionaries to panchayats to implement programmes. This is the situation after 25 years of enacting the Panchayati Raj system of local governance.

On the other hand, for poor states such as Uttar Pradesh, Madhya Pradesh and Odisha, the spread of social programmes will be big and the budget will be high. Currently, these are the states infamous for bad governance and least capacity to implement programmes. So, the states that host the country’s largest chunk of poor may not get any result in the immediate future due to the financial gain and autonomy to implement programmes. The other important question is how will the Central government monitor the progress of development programmes? The newly formed niti Aayog is empowered to monitor this, as Modi has written to the chief ministers. The new body comprises chief ministers and we cannot expect objectivity in performance evaluation. What’s more, the new body is yet to spell out the specifics of how it wants to monitor states’ performance with the new changes. From this year, the Central government will send all development assistance straight to the common pool of states to be used as budgetary support. This means state budgets will be the new instruments to gauge development performance.

A crisis ignoredDespite falling wages, the government has reduced rural budget

INDIA IS staring at a rural economic crisis, a fact even the latest economic survey accepts. But it looks like the finance minister believes otherwise. The total budgetary allocation for rural development this year—`79,526 crore—is the lowest in the past three years and five per cent lower than last year’s `83,852 crore (see ‘Crucial miss’).

The cut comes at a time when most villages are witnessing reverse migration, which has resulted in a three per cent dip in rural wage growth and a huge backlog of unpaid salary under mgnregs. The budgetary allocation to mgnregs is ̀ 34,700 crore—a marginal `700 crore more than last year’s allocation. The current unpaid wages under the scheme is `4,350 crore. After meeting this liability, the scheme will be left with just `30,000 crore, which is `4,000 crore less than last year’s allocation. Jaitley announced he will “endeavour” to raise another `5,000 crore for the scheme, which will not be part of the budget.

The Centre’s flagship rural road construction programme, Pradhan Mantri Gram Sadak Yojana, has also seen a cut in allocations from `14,400 crore to `10,100 crore. The reduction comes despite the fact that the scheme failed to meet last year’s road target because of budgetary shortage. The budget also reduced allocation for the pension scheme, National Social Assistance Programme, to `9,000 crore from last year’s `10,547 crore. As part of its plan to give autonomy to states, the Centre announced states would design and implement the National Rural Livelihood Mission, which supports self-help groups.

In the case of agriculture, the finance minister got the diagnosis right when he said in his speech that the country’s farmers are struggling with “declining agriculture income” and “farm distress”. But the pill he prescribed for the malady is hardly going to help.

"We had asked the Centre to include rubber in ̀ Make in India' project. That request has been ignored" ÐK M Mani, Finance Minister, Kerala

Total budget expenditure

Agriculture

Rural development

Health & family welfare

Consumer affairs, food & public distribution

Drinking water & sanitation

Environment, forest & climate change

Allocations to key ministries have been reduced

Crucial miss

17,94,892

31,062

83,852

39,238

15,267

1,15,952

2,256

17,77,477

24,910

79,526

33,152

6,244

1,24,419

1,682

Amount raised (in `crore)


2014-15 2015-16

"More power to states in areas such as farming will allow them to prioritise according to regional needs. This will benefit the poor" ÐVinayak Deshpande, Economist


14-19Budget.indd 16 02/03/15 1:49 PM

B U D G E T

In the budget, Jaitley increased the farm credit corpus from `8 lakh crore to `8.5 lakh crore and announced the setting up of a Unified National Agriculture Market to provide farmers better price for their produce. The new market, he said, will replace the state-run Agriculture Marketing Price Committees (apmcs). Currently, 2,477 principal apmcs operate across the country; these regulate 4,843 sub-market yards. But they benefit just 8 per cent of country’s farmers, according to the Shanta Kumar committee report released in January this year.

“The prescription is misplaced and routine,” says Devinder Sharma, agriculture and food policy analyst. His disappointment arises from the fact that around 94 per cent of the present farm credit corpus goes directly to agro-based industries, not to farmers.

Experts say instead of just mindlessly increasing the farm credit corpus, the Centre should define farm credit. “The problem is that the definition of farm credit has expanded over time and now includes retail chains and storage houses that eat into the subsidy,” says G V Ramanjaneyulu of Hyderabad-based non-profit, Centre for Sustainable Agriculture. Experts are also unsure of the Centre’s decision to restructure and delink Centrally-sponsored schemes. The 14th Finance Commission recommendation, accepted by the Centre, say states should be given autonomy over farmer schemes because agriculture is a state subject. “Now each state will have to decide how much budget it needs under the Rashtriya Krishi Vikas Yojana (rkvy),” says Nilachala Acharya, senior research fellow at Delhi-based advocacy group, Centre for Budget and Governance Accountability. “But it is too early to put the responsibility on the states because they do not have the required infrastructure to implement the scheme. This will finally impact farmers,” says Acharya.

Public health in private handsHealth budget cut; push for universal health insurance

FOR THE first time in the past seven years, India’s health budget has been slashed. The allocation this time—`33,152 crore—is `6,000 crore less than last year’s grant of `39,238 crore. Though health budget has seen an increase of 81 per cent in the past six years, from `21,680 crore in 2009-10 to `39,238 crore in 2014-15,

the good run has ended. While presenting budget 2015, the finance minister continued his party’s rhetoric on health, saying that good health is necessary for a person to ensure a good quality of life, productivity and for being able to support his or her family. However,

"The definition of farm credit has expanded over time and now includes retail chains and storage houses that eat into subsidies" ÐG V Ramanjaneyulu, farm sector expert

"Now each state will decide the budget it needs under Rastriya Krishi Vikas Yojana...but they are incapable of implementing it" ÐNilachala Acharya, analyst

From this year, the Centre will send all development assistance to the common pool of states to be used as budgetary support


14-19Budget.indd 17 02/03/15 1:49 PM

B U D G E T

"Allocations to the health sector have been reduced by about 17 per cent. This is unprecedented and shameless" ÐAnant Phadke, activist

" The government is giving tax benefits to corporates, but when it comes to people and their health, it does not have money" ÐT Sunderaraman, activist

his idea of providing healthcare facilities to public began and ended with providing health insurance. “A large proportion of India’s population is without insurance of any kind—health, accidental or life,” he said in the budget speech.

He announced increase in tax exemption on health insurance premium from `15,000 to `25,000. For senior citizens, the limit will be increased from `20,000 to `30,000. “For very senior citizens of the age 80 years or more, who are not covered by health insurance, deduction of `30,000 towards expenditure incurred on their treatment will be allowed,” Jaitley said in his speech. The minister also announced his intention to amend laws and help government employees choose between the government-owned Employees States Insurance Corporation and private health insurance companies (recognised by the Insurance Regulatory Development Authority). But as people opt for private health insurance and move to private hospitals, the state of public health facilities is likely to deteriorate. Jaitley’s announcements are likely to increase patients in private health institutions and put public health in the hands of the private sector. Concrete steps to improve public healthcare infrastructure do not figure in his scheme of things. Public health experts would term this as abdication of duty.

The finance minister did talk about providing medical services to each village and city, but the budget allocated is simply not sufficient. His special scheme to provide physical aids and assistive living devices to senior citizens living below the poverty line (bpl) also lacked focus because he did not mention how many senior citizens come under the bpl

category. It is, therefore, not clear how many people will benefit.

A miss to green energy Allocation to the renewable energy ministry reduced by 35.5%

BUDGET 2015 says the government targets to add 175 GW of renewable energy by 2022. Of this, 100,000 MW would be produced from solar energy, 60,000 MW from wind,

10,000 MW from biomass and 5,000 MW from small hydropower plants. Though these targets are higher than previous ones, experts say achieving them would require substantial investments in generation and trans-mission. But the allocation to the Ministry of New and Renewable Energy has been reduced from `3,941 crore last year to `2,541 crore—a reduction of 35.5 per cent.

There is no change in grants for the Power Grid

The government did talk about providing medical services to each village and city, but the budget allocated is simply not sufficient

ALOK GUPTA / CSE


14-19Budget.indd 18 02/03/15 1:49 PM

B U D G E T

Corporation of India Ltd or for green energy initiatives, such as Green Energy Corridors, says Jyotsna Goel, senior budget analyst. This does not raise much hope. A promise the budget does make is to provide round-the-clock power to the entire country by 2020. This includes providing power to 20,000 villages which have yet not received electricity. Solar power, generated off the grid, would be taken into account for gauging success in reaching this target. A good initiative announced in the budget is for training 50,000 people in solar energy technology. Named Surya Mitra, the programme aims to increase solar power generation by making people aware of the advantages of solar power use. An outlay of ̀ 10 crore has been given to the scheme. Reduction of customs duty on solar photovoltaic cells is also likely to encourage the use of solar energy.

Overall, the planning this time is better than what it was in previous years, says Jasmeet Khurana of non-profit Bridge to India, which works on renewable energy. The inverted duty structure introduced in the budget (a scenario wherein the customs duty on raw material/components is higher than the duty on the finished product) is expected to encourage production of solar power equipment in India, he says.

Dampener for climate action Tax, surcharge increased on fossil fuel, but no concrete plans on how to contain carbon footprint

THE FINANCE minister paid lip service to climate change and mitigation this bud-get. He mechanically increased the cost of diesel and petrol by `3 per litre and hiked clean energy cess on coal and lignite from `100 per tonne to `200 per tonne in a bid to rationalise the country’s carbon footprint.

However, experts say the rise in the cost will do more harm than good. E A S Sarma, former power secretary, says the demand for petrol, diesel and coal is not elastic and therefore, an increase in such taxes will not bring down carbon footprint. Additionally, power manufacturers say the additional surcharge will increase the production cost of electricity and, in turn, impact people.

Experts say that instead of just increasing taxes, the government should devise a mechanism to successfully channelise the already collected money for funding research and implementation of green technology. Their demand seems valid when one considers that just 1 per cent of funds have been used by National Clean Energy Fund, which was created in 2010-11 using carbon tax and clean energy cess to fund clean technology. Till June 2014, the fund had a collection of `40,000 crore, out of which just `400 crore got spent. The story is not much different in the case of the annual cess collected through petrol and diesel sales as Oil Industry Development Tax for conservation and research and development of petroleum resources remained underutilised till 2013. According to an oil ministry note, from December 2013, India’s oil industry had paid `118,500 crore cess of which the finance ministry had paid only `908 crore to the Oil Industry Development Board (see ‘Misplaced focus’).

Clean energy fund pool increased but most of it remains unused

Misplaced focus

Clean energy cess

Oil development cess


(Till June, 2014)

(Till December, 2013)

Total collection of clean energy cess by National Clean Energy Fund

`40,000 cr

Total Oil Industry Development Tax collected

`1,18,500 cr

Total amount disbursed to Ministry of New and Renewable Energy

`400 cr

Total money disbursed to Oil Development Fund

`908 cr

"There is no roadmap for how the cess collected from petrol, diesel or coal will be utilised "ÐE A S Sarma, former power secretary, Government of India

" The cess will increase the energy charge, making a difference of 10-12 paise per unit of power"ÐRavi Uppal, CEO, Jindal Steel and Power Limited


14-19Budget.indd 19 02/03/15 1:49 PM

WE HAVE no water problems an-ymore. Now, Kshipra ji has sufficient water for everyone,” announces a smiling Manish

Dangi, resident of Mudla village in the water-deficit Malwa plateau of Madhya Pradesh. He is standing on the bank of a con-crete canal filled with swift-flowing water. It takes a while to fathom that the 3 metre-wide canal from the Narmada river feeds the fast drying Kshipra river, and is its new origin.

Just 50 kilometres away, residents of Aatwan village located in the Nimar plains of the Narmada river, are facing severe water crisis. The village is located in the command area of the Sislia reservoir but does not re-ceive a drop from it. “Every day, the reservoir fills up and then, the water disappears,” says Deoram Narvare of Aatwan, staring rueful-ly into the nearly empty reservoir.

This reversal in water situation of the two places is the result of the Madhya Pradesh government’s ambitious Narmada-Malwa river-link project, the first river-linking pro-ject of the country. Under the project, the government plans to transport Narmada wa-ter to the arid Malwa region. This will be done by linking five rivers of the Malwa re-gion—the Kshipra, Gambhir, Parvati, Kali Sindh and Khan—to various dams on the Narmada through canals and pipelines. The government claims that together, these links would provide drinking water to 3,000 villages and 70 cities and irrigate about 680,000 hectares (ha) in the arid Malwa.

However, a close examination of the first phase of the project, linking the Narmada with the Kshipra, shows the `26,000 crore Narmada-Malwa link project is not only ex-pensive, but environmentally disastrous. It was completed in February. While there is no evidence to show that the project would alle-viate Malwa’s water crisis, it is already depriv-ing people along the Narmada of water. Besides, the project is highly impractical as it

As Madhya Pradesh's ambitious plan to transport Narmada water to the Malwa plateau takes shape, it demonstrates the futility of river-interlinking projects

APARNA PALLAVI | indore

Weak link

R I V E R I N T E R L I N K I N G

APARNA PALLAVI / CSE

The canal from the Narmada river feeds the fast drying Kshipra river


20-21River interlinking.indd 20 20/02/15 3:35 PM

R I V E R I N T E R L I N K I N G

requires transporting river water against gravity. This is the reason National Water Development Agency dropped the project from its proposed National River Link- ing Project, which in itself is controversial.

A white elephantThe main problem involved in transporting water against gravity is that it requires an im-practical amount of power. For instance, the `432-crore Narmada-Kshipra link requires water to be transported from Sislia reservoir in the plains of the Narmada to Mudla, locat-ed at a height of 400 metres. For this, the pro-ject employs a 1.82 metre-wide, 48 km-long pipeline. As per initial estimates of Narmada Valley Development Authority (nvda), which is implementing the river-link project, at least 27.5 MW of electricity is required to lift 430 million litres per day (mld) of water. This will cost `119 crore annuallyÐ over one-fourth of the cost of the project’s con-struction. The daily cost of pumping would be ̀ 32 lakh, which translates into ̀ 9 per kil-olitre. Rajnish Vaish, principal secretary of nvda, told Down To Earth (dte) that water for domestic use will be provided to munici-palities at ̀ 15-`17 per kilolitre. It is on a par with the tariff paid by nearby Indore city.

Estimates by Barwani-based non-prof-it Manthan Adhyayan Kendra, however, show that if other operation and mainte-nance costs and losses in transit are consid-ered, the water tariff could go up to ̀ 50 per kilolitreÐ 5-10 times the price that urban consumers elsewhere in India pay. Whether people can afford this water is not yet clear.

Similar misgivings have been expressed regarding accessibility of water for irrigation. Vaish says water for irrigation would be pro-vided at ̀ 10,000 per ha annually, but only for micro-irrigation. A pre-paid water metering system will ensure that farmers do not waste water, he says. Activists working with farm-ers, however, are not convinced. “Pre-paid metering is the most effective ruse for deny-ing water to the poor. Such schemes have failed in Africa and Bangladesh because peo-ple could not pay,” says Chinmay Mishra of features agency Sarvodaya Press, who has been writing on Narmada-related issues. Mishra and several other activists fear that nvda may divert water from the project to

industries and urban areas, mainly those along the proposed Delhi-Mumbai Industrial Corridor. Their contention is jus-tified. While nvda is yet to supply drinking water to beneficiary villages, it has already di-verted 90 mld of water from the Narmada-Kshipra link to Pithampur industrial estate in Dhar district. This was not part of the orig-inal plan. Project in-charge M S Ajnare told dte that nvda is not supplying water to ben-eficiary villages as the infrastructure is not ready. He could not provide a time limit by when the villages would get water.

Meanwhile, desperate farmers have

started lifting water from the Kshipra for irrigation. “All along its 200 km route, the Kshipra is riddled with underground pipe-lines laid by water-starved farmers who rou-tinely lift water from check-dams,” says Shashikant Awasthi of Kshipra Punarpravah Abhiyan, working to restore flow of the riv-er. Dangi says Mudla got water only after farmers forced nvda to provide for irrigation.

The Narmada-Kshipra link has also led to conflicts in the region. Omkareshwar dam on the Narmada was originally meant to ben-efit farmers in the Nimar plains. But now its water has been diverted to Malwa plateau via Sislia reservoir (see ‘Defying gravity’). Early this year, farmers from Nimar filed a petition with the Indore Bench of Madhya Pradesh High Court, demanding a stay on inaugura-tion of the link. In its verdict, the court fault-ed nvda for changing the dam’s command area to include Malwa. “This could mark the beginning of an inter-regional water conflict in the state,” says Rehmat bhai of Manthan Adhyayan Kendra. Linking the Narmada with the Gambhir needs diverting water from Maheshwar dam, while the Kali Sindh and Parvati links will tap Indira Sagar dam.

Alternatives ignorednvda has two explanations for undertaking the Narmada-Malwa river-link project. First, there is no other way to revive the arid Malwa. Second, it is the only way nvda can use up its share of 18.25 million acre feet (22.5 million cubic metres) of Narmada wa-ter by 2025, as awarded by the Narmada Water Disputes Tribunal (nwdt). After 2025, nwdt will redistribute the unused wa-ter among the other Narmada basin states.

Rehmat bhai says, “The project is being pushed at the cost of Nimar plains, which re-ceives lower annual rainfall than Malwa. The share of water allotted could be utilised by fulfilling Nimar’s needs.” Chief Minister Shivraj Singh Chouhan has stated several times that 700,000 micro-water retaining structures have been constructed all over the state during his tenure. dte’s reportage shows such structures have improved condi-tions of water-starved Dewas district (see ‘Penny Foolish, Pond Wise’, January 16-31, 2012). Activists say the government can pro-mote similar structures to revive Malwa. n

The Narmada-Kshipra Link will lift water to a height of 400 metres at a cost of `119 crore a year

Narmada river

Omkareshwar dam

Mudla village in Malwa plateau

Sislia reservoir in Nimar plains

Kshipra river

Defying gravity

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Pump house

Narmada-Kshipra link, a 48 km-long

pipeline

Original Narmada water distribution

system

Source: Narmada Valley Development Authority


20-21River interlinking.indd 21 23/02/15 2:47 PM

SOON AFTER President Pranab Mukherjee signed the ordinance to amend the archaic Mines and Minerals (Development and

Regulation) Act of 1957, Union minister for steel and mines, Narendra Singh Tomar, announced it is a revolutionary step towards reviving the country’s mining sector.

His ministry highlighted that the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015 will address problems that have been plagu-ing the sector for long. These include grant-ing mineral leases in discretionary, non-transparent and delayed ways, problems in renewal of mining leases, illegal mining ac-tivities, reluctance to undertake exploration and investment in the sector, and grievance of the civil society that the mining-affected people are not cared for.

But these problems are not new and ways to address most of them have long been de-bated by the country’s intelligentsia. This in-cludes the report of the High Level Comm- ittee on National Mineral Policy in 2006 by the Planning Commission. In 2011, the then government led by the United Progressive Alliance (upa) introduced a bill to reform mmdr Act, 1957 which later lapsed.

So, what was the urgency behind intro-ducing an ordinance? Is it to reform the sec-tor, as highlighted by the mines ministry, or to give an impetus to the mining sector, by expediting and expanding mining leases? The ministry has several times acknowledged that delays in granting mining leases has been a major factor for “significant reduction in the output of the mining sector”. Sources say the Prime Minister’s Office has already an-nounced a deadline of March 10 to begin the first phase of auctioning of non-coal mines.

Auction is the buzzwordThe ordinance introduces a provision to grant all mineral concessions through auctioning.

However, auctioning is hardly a one-size-fits-all solution.

It is the best way to allocate mineral con-cessions where mineral deposits can be accu-rately established and a proper valuation can be done. This will help the leaseholder cap-ture the windfall profits as well as bring in transparency in the allocation process. However, in cases where mineral deposits are not properly established, auctioning can lead to problems like undervaluation of minerals, leading to lower revenue generation for the government, or overvaluation, resulting in the inability of the concession holder to meet commitments. This will lead to uncertainties in case of pros-pecting-cum-mining leases.

If auction-ing has to be done for prospect-ing-cum-mining leas-es, it can only be done for bulk minerals, such as iron ore,

Ordinance to reform the mining sector will do more harm than good

SRESTHA BANERJEE | new delhi

UNDERMINED M I N I N G O R D I N A N C E

22 DOWN TO EARTH

22-24Mining ordinance.indd 22 23/02/15 4:36 PM

M I N I N G O R D I N A N C E

bauxite and limestone that remain deposit-ed close to the surface, and where substantial exploration work has been done by state agencies. For deep-seated minerals, which require highly specialised human and tech-nical resources and is capital-intensive, “first-in-time” principle (whoever first applies for prospecting permit) is the most certain way of granting mineral concessions.

Revenue, but at what cost?The prime objective of auctioning is to get more revenue for the state government. While this is fair enough, focus on revenue maximisation can lead to a race to the bot-tom, wreaking havoc on the environment, ecosystem and people.

Consider this. Most mineral deposits in the country are located in ecologically sensi-tive areas. A major share of bauxite deposits are found in the hilltops of east coast states such as Odisha, while iron ore, manganese and laterite are abundant in the Western Ghats. Auction guidelines thus need to be

developed to discourage mining in eco-logically sensitive areas.

Environmental concerns increase further when one considers the kind of unscientific and inefficient mining prac-

tices the ordinance encourages.While the mmdr Act grants mining

leases for maximum 30 years and allows it to be renewed for up to 20 years, the ordi-nance grants leases for 50 years without any provision for lease renewal. This also applies to existing mines. Worse, the ordinance puts

a special emphasis on extending the min-ing lease of captive mines. Promotion of captive mines would only aid poor envi-ronmental performance of industries

owning the mines.Analyses by Delhi-based non-profit

Centre for Science and Environment (cse) for the cement sector in 2005 and steel sec-tor in 2012 show that environmental perfor-mance of these sectors largely depends on the way they source raw material from their cap-tive mines. While cement companies were reluctant to invest in proper management of mines, steel companies were hardly develop-ing technologies for efficient use of raw ma-terials. Besides, captive mine allocations in-volve unscrupulous activities. The Supreme Court, in its August 2014 judgement on the

coal scam, noted that the way in which coal blocks were allocated to private par-ties for captive mining was highly “ad hoc”, due to which “common good and public interest suffered heavily”. Given

the inefficiency and non-transparency in allocation and functioning of captive mines, the government should ensure that new al-locations are made through “open auction”

following proper exploration of minerals.The ordinance has done away with the

provision of renewal of leases. Given that as-sessment and monitoring of mines are weak in India, such a provision in the mmdr Act offered an opportunity to assess the perfor-mance of mines, both in terms of productiv-ity and environmental impact. A long lease period without any provision for periodic au-dit would further impact regulatory supervi-sion. So, a mechanism must be put in place to ensure intermittent assessment of a mine’s performance.

The ordinance further states that mines will be re-auctioned after the leases expire. This will discourage leaseholders from in-vesting in progressive closure and rehabilita-tion of mines. The long duration of the lease will also make it difficult to estimate and es-tablish appropriate financial guarantee to en-sure that mine closure will happen. This will encourage the practice of “dig and run”, add-ing to the burden of abandoned mines.

As per 2010 estimates by the Indian Bureau of Mines, there are 297 abandoned mines of major minerals. This does not in-clude abandoned coal mines, which, accord-ing to a 2008 analysis by cse, number at least 240. However, this could still be a gross un-derestimation of the scale of the problem. Former Union environment ministry offi-cials acknowledge the poor documentation of abandoned mines. In December 2014, re-sponding to a Lok Sabha question on the sta-tus of abandoned mines, the Ministry of Mines stated that there are 5,028 non-work-ing mines and that there is no “separate clas-sification” of abandoned or sick mines.

Writing off social contractIt is not just the environment, the ordinance also brushed aside the concerns of mining-affected communities. According to the Union Ministry of Tribal Affairs, 90 per cent

The ordinance highlights auctioning as a key tool to reform mining governance. It remains silent on strengthening regulatory institutions and mechanisms


22-24Mining ordinance.indd 23 23/02/15 4:36 PM

M I N I N G O R D I N A N C E

Union Ministry of Tribal Affairs, 90 per cent of the 104 million poor tribal people in India traditionally live in mineral-rich forest areas. So far, no law addresses this dichotomy or di-rects companies to share profits earned from mining activities with the community. In 2008, cse had initiated this equity debate, which prompted a nation-wide conversation on environmental justice in mining activities. In 2011, the Ministry of Mines recognised the problem in the Sustainable Development Framework formulated for the mining sec-tor by saying that “in recent decades, mining activities have resulted in little local benefit”. To undo this historical injustice, the minis-try that year introduced the mmdr Amendment Bill in Parliament. The Bill specified that for mining for major minerals, the leaseholder shall pay the district mineral foundation (a non-profit body set up by the state government) “an amount equivalent to the royalty paid during the financial year” annually. For coal and lignite, it was to be an amount equal to 26 per cent of the profit after tax.

The benefit-sharing provisions have been diluted in the ordinance. Leaseholders are now required to pay not more than “one-third of the royalty” from the respective min-erals, in addition to the royalty paid to the state. A back-of-the-envelope calculation shows that this will be a 20 per cent reduction in the funds made available to the communi-ty. cse analysis shows that under the profit-sharing provision of the mmdr Bill, the com-munity would have received ̀ 10,500 crore a year. Going by the ordinance, they will re-ceive ̀ 8,320 crore a year at the most.

More displacements, unrest?The mmdr Act empowers the Centre to ex-tend a mine lease up to 10 sq km for “devel-opment” of any mineral. The ordinance ex-tends this discretionary power for development of an industry. With no speci-fication on the extent to which the area can be extended, large areas can now be leased out to cater to industrial demands.

The increase in size of the mine lease area will effectively mean more displacement. An analysis by cse shows that since the begin-ning of the 11th Five Year Plan in 2007, the

area leased out for various mining activities can potentially displace more than 800,000 people. This is a gross underestimation as dis-placement-related information is not avail-able for many projects.

Less benefit with the potential for more displacement only perpetuates the exploita-tion by mining companies. The distrust and anger of the dispossessed is evident in the up-risings in the forested and economically backward mining areas of Chhattisgarh, Jharkhand, Odisha and Andhra Pradesh.

Uncertainties for mining sectorThough provisions of the ordinance may help the mining sector earn short-term gains, it cannot remain immune for long.

The ordinance will hurt the sector in the long-run by limiting innovation and in-

vestments, required to ensure optimum ex-ploration. It promotes “open sky” policy (opening up the scope of exploration) by granting non-exclusive permits, but does not guarantee any return to the investors. To en-sure returns the government should adopt the “first-in-time” principle.

The ordinance has proposed setting up a National Mineral Exploration Trust, which will be created with the two per cent royalty paid by leaseholders. This will at best create a corpus of ̀ 500 crore (about US $90 million). The amount will not be sufficient for explo-ration of strategic minerals required for elec-tronics, renewable energy and advanced en-ergy storage. Australia, with a similar potential of mineralisation, has an explora-tion budget of about US $3 billion. Limiting the scope of exploration will prompt compa-nies to cherry-pick mineral deposits close to the surface, such as bulk minerals, and deep-

seated minerals, such as base metals, noble metals, rare earths, will remain unexplored. The government needs to promote both pub-lic and private sectors for exploration works.

The ordinance is also weak at curbing the numerous illegalities that plague the mining sector. These include over-extraction of min-eral ore, illegal selling, export and transpor-tation of ore; removal of ore from overburden dumps and selling them without state ap-proval; mining outside the lease area; unsci-entific and unregulated practices in small-scale mines; and carrying out mining in officially closed mines. Tackling the situation requires strengthening the regulatory insti-tutions and mechanisms. But the ordinance calls for increasing penalties for any violation under mmdr Act, and creation of special courts for speedy trial of mining offences.

Tilting the balance?Instead of strengthening institutions and im-proving governance at the state level, the or-dinance allows huge scope for interference by the Centre. Though it allows the state to grant leases, the power to determine terms and conditions for bidding and auctioning remains with the Centre. The Centre will also have the power to direct the state on imple-mentation of various provisions of the mmdr Act. This is in addition to its power to revise any order passed by the state with respect to minerals other than minor minerals. With the Centre having such overriding powers, states no longer remain equal stakeholders in mining governance.

The ordinance has failed to take into consideration the need for reforms to im-prove governance in the mining sector. It also undermines the spirit of co-operative feder-alism, much championed by Prime Minister Narendra Modi to ensure good governance. There is no doubt that our existing regula-tions and institutions need reforms to deliv-er better results on the ground. The country needs a new law and a reformed regulatory mechanism. However, the Act must be for-mulated not only as a mechanism for aiding mining, but to ensure a sustainable mining future, balancing the needs of people, the en-vironment and economy.

With inputs from Manavi Bhardwaj

The ordinance has diluted the benefit-sharing provision in the MMDR Bill, which directed companies to share profits earned from minerals with affected communities


22-24Mining ordinance.indd 24 23/02/15 11:09 AM

25 march 1-15 201525Sintex ad.indd 25 26/02/15 4:23 PM

ON FEBRUARY 9, the Legislative Assembly of Karnataka passed a Bill to create an authority for management of lakes in the state.

The Karnataka Lake Conservation and Development Authority Bill (2014), which has been sent to the governor for approval, provides for a Karnataka Lake Conservation and Development Authority. Though the state already has a Lake Development Authority (lda), it has not been able to check the decline in the number of lakes or the deterioration in the quality of water. lda chief executive officer C K Shivanna says the body is toothless because it lacks legal power. The new Bill seeks to address this shortcoming.

“The number of lakes in Greater Bengaluru has drastically reduced due to anthropogenic factors. From 207 lakes in the 1970s, the number came down to 93 in 2010,” says T V Ramachandra of Centre for Ecological Sciences, Indian Institute of

Sciences, Bengaluru. Lakes such as Madiwala, Bellandur, Horamavu, Akere, Ulsoor and Hebbal are covered by weed as sewage is allowed to flow into them. More than 50 per cent of the lakes in the city have been encroached, says Ramachandra. A survey he did in 2007 showed that 72 per cent of lakes in Greater Bengaluru have seen a loss

of catchment area. His research predicts that if the urban sprawl continues to grow at the current rate, Bengaluru may lose its water bodies, green cover and open spaces by 2020 (see ‘On a downward spiral’). Setting

up a new authority is, therefore, a welcome step, he says.

New set upThe new authority will function through a 16-member governing council, chaired by the chief secretary, and an executive commit-tee. The governing council will also have three government-nominated environment ex-

To counter the rapid decline of its lakes,

Karnataka is creating a new authority with

powers to fine and imprison encroachers

and polluters. Will it be able to reverse

the trend? SUSHMITA SENGUPTA |

new delhi

Saving city lakesOver two-thirds of Bengaluru's lakes have lost large parts of their catchment area

L A K E C O N S E R V A T I O N

A SERIES ON URBAN INDIA'S WATER BODIES

LakesUrban

LEO

SAL

DAN

HA


26-27Lake conservation.indd 26 23/02/15 4:36 PM

L A K E C O N S E R V A T I O N

perts. Its jurisdiction will extend to all water bodies within the limits of all the city corpo-rations in the state and any other water body of the state identified by the government. lda, on the other hand, had jurisdiction only over water bodies in Bengaluru and those wa-ter bodies in the state which are a source of drinking water. The most important differ-ence between the two authorities is in their punitive powers. While lda was not even empowered to remove encroachments, the new authority can remove encroachments, impose fines of ̀ 10,000 to ̀ 20,000 and im-prison violators for three to five years. Even lda officials agree this is the most crucial part of the new Bill.

Gaps in the BillDespite the changes, there are doubts how effective the new authority will be. Leo Saldanha, coordinator of Bengaluru-based non-profit Environment Support Group (esg), says government-nominated experts in the governing council can be removed by the state government. This will prevent them from interfering in controversial matters, he says. He also says that the Bill allows the new authority to utilise or allow the usage of the lakes for drinking water, fishing, irrigation, education, tourism or any other purpose it deems fit. This will give it a free hand to lease out lakes to developers or hoteliers for devel-opment as has been happening under lda .

Further, there is no role of panchayats in the new authority. The Bill also ignores District Lake Protection Committees and State Level Apex (Appellate) Lake Protection Committee which were consti-tuted under the direction of the Karnataka High Court to provide people a platform to seek remedial measures against problems of encroachment, pollution and destruction of lakes. The aim was to settle grievances local-ly and promptly. The order came in 2012 in response to a public interest petition filed by esg in 2008 against privatisation of lakes.

Shridhar Pabbisetty, chief executive officer of non-profit Namma Bengaluru Foundation, also says lack of legal power is not the main problem and even if lda was given legal powers, the situation would not improve. But Sukhdev Singh, chief executive officer of Delhi Parks and Gardens Society,

which comes under the Government of Delhi and coordinates management of parks and gardens in the National Capital Territory, has a different view. He says legal powers are crucial to make such an authority effective. He says water bodies in Delhi are under different agencies for whom conservation is not a priority and Delhi, too, is trying to set up a water bodies protection and development authority.

His view is supported by Malik Tariq, public relations and awareness officer of Lakes and Waterways Development Authority (lawda), a body constituted for the protection of Dal and Nagin lakes of Srinagar, Jammu and Kashmir. The authority operates effectively to conserve the Dal and Nagin lakes. He says it is difficult to take action against polluters and encroachers without effective powers. Tariq cites the example of a demolition drive the authority carried out on January 21 in Srinagar’s Astanpora area which forms a part of the catchment area of the Dal lake.“Since the authority has been formed, we have orgainsed regular drives for clearing the green belt which is a 200 m strip around the lake,” Tariq says. “As and when we get complaints, our enforcement cell along with a deputy super-intendent of police (deputed for this purpose) removes the encroachments,” he says, adding, “Only sending notices to violators does not serve any purpose.” This is exactly what the problem with lda was. It had served notices

to many land grabbers in Bengaluru but could not take action. Karnataka, too, needs to adopt the ways of lawda, says S R Nagraj, executive engineer with lda.

What ails LDA?lda was constituted as a registered society in 2002 by Karnataka to conserve and protect the lakes in Bengaluru and neighbouring area as the city was losing water bodies due to urbanisation and pollution. Currently, its main function is limited to giving clearances to detailed project reports of lake development projects to different authorities. However, it has been authorised to undertake many other tasks, says Nagraj. These include preparing environment impact assessment studies of projects proposed on lakes, environmental planning, gis mapping of lakes, monitoring and management of water quality and lake ecology, and restoring lakes, Nagraj adds.

“But toothless lda is contributing to a slow death of lakes,” says Saldanha. It recently failed to clear encroachments of Chikkalasandra lake, the only water body in Bengaluru South taluk, which has completely dried. The lake is in the custody of Bruhat Bengaluru Mahanagara Palike, which has laid a road on the lake bed. The case shows the utter helplessness of lda in dealing with such matters. However, how effective will the new authority be is yet to be seen because its structure and composition leave a lot to be desired, says Saldanha. n

% o

f lan

duse

80

60

40

20

0

By 2020, the coverage of water bodies and vegetation in Bengaluru will become negligible

On a downward spiral

1973

Source: T V RamachandraLand use categories | Built up: Residential area, industrial area, paved surfaces, commercial areas; Vegetation: Forest, plantations; Water: Tanks, lakes, reservoirs and drainages

1992

1999

2000

2008

2009

2002

2006

2010

2012

2020

(p

redi

ctio

n)

Built up area Vegetation area Water area


26-27Lake conservation.indd 27 23/02/15 4:36 PM

C O V E R S T O R Y

WILL THE BOOM LAST?

ILLUSTRATIONS:SORIT & AJIT BAJAJ/ CSE


28-35Cover Story.indd 28 24/02/15 10:36 AM

C O V E R S T O R Y

Fifteen years after it rose and went limp, the biotech sector, globally, as well as in India has seen a bull run of sorts. In January this year, some 10 healthcare companies went public on the NASDAQ. Meanwhile, India has become the world's 12th biggest biotechnology economy having the second highest number of USFDA-approved plants. But will this boom continue? Or will it prove to be just a bubble like it was in 2000, impacting drug manufacturing companies badly. RICHARD MAHAPATRA and

KUNDAN PANDEY take stock

IF ONE trawls through the vast, virtual world of stock market investors and analysts, one thing strikes the eye: the frequent appearance of the word “biotech”. Dig further into any posting on biotech and the computer screen gets almost deluged with recommen-dations for buying shares of biotech-

nology companies. By the time one presses “quit”, the message hits home overwhelmingly: the global biotechnology industry is booming, and in an un-precedented way.

The news is like soothing balm for the reces-sion-hit world economy. Every new drug discovery or drug approval not only draws cheers from millions of victims of debilitating diseases but also adds value to biotechnology companies. Since the past two years, such discoveries and approvals are happening at an unusual pace, particularly in the US market. One also cannot ignore the length-ening list of generic drugs, mostly produced by small companies. This has, as analysts point out, prompted major drug companies to acquire smaller ones to retain their market share. In a complex play of scientific progress and market forces, the bio-technology industry is recording growth that can


28-35Cover Story.indd 29 24/02/15 12:09 PM

rival the information technology industry boom of the 1990s.

With most conventional sources for invest-ment being looked upon with recession-triggered suspicion, biotech has arguably emerged as a pre-

ferred investment sector. Money is pouring in and analysts are sure the sector will

maintain its blue chip status in the coming years as well.

The boom made global headlines this January during the J P Morgan Healthcare Conference, an annual event that provides a debating fo-rum for biotechnology and health investors. Over four days, some 400 biotech companies cheered the

growth, both in investment and market capitalisation of

the industry. The first presenta-tion by Robert J Hugin, chief ex-

ecutive of Celgene, one of the larg-est biotech firms of the US, captured

the euphoria. “It is an incredibly exciting time for our industry. This is not hype and

smoke and mirrors,” Hugin said. The recent financial performance

data from the US, which controls the global biotechnology market,

supports this claim. To begin with, biotechnology companies have performed

much better than other companies in terms of return on share and market capitalisation in the past six to seven years. In 2014, some 110 bio-technology companies were listed in the US to raise $9 billion from public and financial institu-tions. The nasdaq Biotechnology Index has been up 177 per cent in the past three years, compared to a 52 per cent increase in the Standard & Poor’s

500, the American stock market index based on market capitalisation of 500 large companies. In 2013, the nasdaq Biotechnology Index

rose 35 per cent. One can gauge how big this growth is from the fact that the growth rate was only 11 per cent for the benchmark

Standard and Poor’s 500. In January, some 10 healthcare companies planned to go public on the nasdaq.

According to multinational management consultant network PricewaterhouseCoopers, venture capitalists pumped $5.97 billion into



biotech companies in 2014. This was a 29 per cent increase over 2013. The year saw all sorts of inves-tors—retail, venture capital trusts, emerging market vehicles—investing in biotechnology stocks. They reported more than the expected returns, highly unusual in times of market uncer-tainty. This year, it seems, the industry is going to be much more lucrative, both for investors and buyers. According to journal BioCentury, till February, the biotech industry has already raised $1,819 million, taking the total investment in bio-technology up to $14.9 billion (see ‘Year to watch out for’).

This growth has come almost after a decade. Biotech remained dormant and off the popular investment radar after a market crash in 2000. A few months before the crash, it was the prime choice of investors, riding on promises of progress in human genome science and a boom in drug discovery. Interestingly, the present boom is led by small- and mid-sized bio-pharma companies.

In India, the world’s 12th biggest biotechnol-ogy economy and having the second highest number of US Food and Drugs Administration (usfda)Ðapproved plants, the industry is not only

excited at the revival in the US but also about its domestic prospects. In February, the 15th edition of Bangalore India Bio 2015, the country’s annual biotechnology show by industries, noted the progress. “India’s biotechnology economy will be more than $100 billion by 2025, which will make it level with the information technology industry,” says P M Murali, president of Association of Biotechnology Led Enterprises (able), the coun-try’s only biotechnology industry association.

The Indian bioeconomy grew to $4.3 billion at the end of the 2013 financial year, up from $530 million in 2003, according to BioSpectrum, a widely-read trade publication in India (see ‘Indian biotech’s steady growth’ on p33).

Though concentrated in Hyderabad and Bengaluru, there are units sprouting across the country; currently some 350 companies are in op-eration. The bio-pharmaceutical sector, which in-cludes vaccines, medical devices and stem cells, is the main driver of India’s biotechnology growth, generating close to 63 per cent of the industry’s total revenue in 2013. “Companies are doing well and the sector’s future prospects look bright. Many new start-ups are coming up in the Bengaluru cluster. This is really a good time and there is more innovation happening on the ground now,” says Murali.

Kiran Mazumdar-Shaw, the ceo of Biocon, India’s first biotechnology company, says, “If we compare the Indian biotech industry with its global counterpart, we find that we are going there in terms of capability but as far as investment is concerned, China and America are far ahead. India has a huge market. Going by this, the sector will become only bigger.” Biocon was in news last August when it launched Alzumab, an anti-CD6 antibody for the treatment of psoriasis. The global market for psoriasis drugs is expected to reach $8 billion by 2016. This has excited the attention of investors who look forward to lucrative returns from biotechnology.

“We had the stars aligned very well for us a decade ago, which we did not capitalise on due to ambiguous regulatory policies and knee-jerk reac-tions. Hopefully, the lessons learnt from the past will now be used to accelerate growth in the health and agriculture sector,” says Murali.

The biotech economy boom is definitely not a “gold-rush” kind of phenomenon where desperate investors chase a success story. Since the crash in 2000, many developments have happened in drug

"It is an incredibly exciting time for our industry. This is not hype and smoke and mirrors" ÐRobert J Hugin, CEO, Celgene

177%Increase in NASDAQ biotechnology index in the past 3 years

2015 could be a boom year for US biotech investment

Year to watch out for

Venture

IPO

PIPEs & other equity

Follow-on

Debt

700

1,500

1,000

2,500

3,200

1,800

1,300

300

5,200

6,300

Amount raised ($ million) 2014 2015*

C O V E R S T O R Y

*Till FebruarySource: BioCentury Data (as viewed on February 17, 2014); CAGR: Compound Annual Growth Rate; IPO: Initial Public Offering; PIPE: Private Investment in Public Equity



C O V E R S T O R Y

science and policy, that are fuelling the biotech-nology industry’s growth. It is not just a demand-supply phenomenon. There is an overarching change in drug policy in various countries and a push for freeing drugs from the patent regime. This is leading to a major realignment in the bio-tech industry in terms of investment.

But the primary reasons for the current boom are: a spurt in new drug approvals in the US, discov-ery of new drugs for diseases like cancer, hepatitis C and cystic fibro-sis, and a major phase of drug pat-ents expiry. Besides, recent prog-ress in technology and increased investment on research and devel-opment (r&d) have lowered gesta-tion period of a drugÐ from research level to trial to retail phaseÐ drastically.

Boosted by drug approvals A surge in drug approvals is being cited as the most important booster for the biotechnology industry in the US and, consequently, in countries like India (see ‘Drugs take biggest share’ on p33).

In 2004, the usfda-approved pain reliever, Vioxx, was removed from the market for raising risk of heart attacks. This led to usfda becoming extremely cautious in granting approvals, thus slowing down the arrival of new drugs in the mar-ket. Fast forward to 2014 and the usfda seems to have thrown caution to the wind. It approved 41 new drugs, the maximum for any year since 1997. Six of these were approved under usfda’s Accelerated Approval Program that allows early approval of a drug for a serious or life-threatening illness. Just two years before, in 2012, usfda had approved 39 drugs, the maximum for any year in a decade-and-a-half.

John Jenkins, director of the Office of New Drugs in usfda’s Center for Drug Evaluation and Research, has a word of caution. In his annual state of affairs blog on usfda site, he noted that fast approvals were “more of a health need than any business support”. The newly-approved drugs consist of eight new drugs for treating patients with various types of cancer, four new drugs to treat Type-2 diabetes, four new antibiotics to treat serious infections, and two new products to treat patients with hepatitis C. Given the large number of people suffering from these dis-eases, the approvals came as a major market boost.

"We see mergers and

acquisitions in the healthcare

sector being up materially in 2014 at all

size levels and across all

subsectors" ÐJeffrey Stute, head of

healthcare investment, J P Morgan

32 DOWN TO EARTH


C O V E R S T O R Y

In fact, in his blog, Jenkins celebrated the fact that usfda’s approv-

als are now given much before the stipu-lated deadlines. Recently, it approved Lenvima (lenvatinib) for a type of thyroid cancer.

Manufactured by Japanese pharma firm, Eisai, the drug treats progressive, radioio-

dine-refractory differentiated thyroid cancer. The approval was given well ahead of the drug’s official deadline of April 14, making Lenvima the fifth cancer therapy in the past 11 months

to be approved more than two months ahead of its due date.

The change in the US law has also led to fast approvals of antibacterial and antifungal drugs. The government added a provision, the Generating Antibiotics Incentives Now Act, to the Food and Drug Administration Safety and Innovation Act. This new provision is to promote development of antibacterial and antifungal drugs by granting a special designationÐ Qualified Infectious Disease Product (qidp). So far, usfda has granted 57 qidp designations to new experimental products. A qidp designation grants a manufacturer the right to receive “priority review and fast track” status from usfda, significantly shortening the time for drug approval and allowing special consultations during the process with experts from the agency. qidps also receive an additional five years of mar-ket exclusivity.

As mentioned earlier, the new boom is led by small players in the biotechnology industry. Most of these small players are seeking approval for new drugs. Of the 41 new drugs approved last year, 22 are made by little-known companies in the US. This is why the approvals are cited as boosting new business and new investors.

Hans Bishop, ceo of Juno Therapeutics, pointed this out during the Morgan annual con-ference. “While the relentless growth-in-revenue dynamic of big pharma means they face distrac-tion from having to pad their portfolios with fol-

The sector has grown steadily over the years and was worth US $4.3 billion at the end of 2013

Indian biotech's steady growthBio-pharma accounted for 64 per cent of Indian biotech's total revenues in 2013

Drugs take biggest share

Market size at CAGR of 22.2%

2013

2012

2011

2010

2009

2008

2007

2006

$4.3 bn

$4.3 bn

$3.8 bn

$3.0 bn

$2.6 bn

$2.6 bn

$1.9 bn

$1.5 bn

64%Bio-pharma

18%Bio-services

14%Bio-agri

3%Bio-industrial

1%Bio-informatics

Source: BioCentury Data (as viewed on February 17, 2014); CAGR: Compound Annual Growth Rate

41Number of new drugs approved by the USFDA in 2014, the highest for any year since 1997



"There is some hype

but it is not a bubble at all. It

won't burst" ÐKiran Mazumdar-Shaw,

CEO, Biocon

low-on drugs, start-ups, by definition, have no choices but to focus on one new thing,” he said.

The approvals also indicate another key reason for the boom in the industry: advancement in drug development. There have been major break-throughs in treatment of critical diseases like can-cer, diabetes and hepatitis. These three diseases afflict millions of people across the world and there has been enormous demand for new effec-tive medicines. It is for the first time in history that worldwide prescription drugs sale will cross $1 trillion by 2020. From 2013 till 2020, it will grow 5.1 per cent annually. This growth comes af-ter two years of stagnation.

r&d spending by biotech companies has pro-portionately surged. For example, in the US, the value of r&d commitment went up by 46 per cent in 2014 in comparison to 2013, according to EvaluatePharma, a leading research body focused on the biotechnology industry. The World Preview Report 2015, brought out by EvaluatePharma, says that this is the highest figure since 2008.

Bullish on biosimilars The next big push for the industry comes from the unprecedented increase in the market for generic drugs, particularly in the US that controls the glob-al market. Similarly, middle-income countries like India and Brazil are reporting increased demand and local manufacturing capabilities. US President Barack Obama’s healthcare reform is centred on low-priced drugs that can be made possible by ge-nerics. The US is already pressuring drug firms to lower prices to reduce cost of government pro-grammes and to lower insurance rates, which will benefit people. Though at present, generics account for 70 per cent of America’s total prescription sales, market analysts estimate that it would grow further.

But what is fuelling the surge in generic drugs growth? The definition of generics covers a group of medicines called biosimilars. These are termed as the “generic equivalent” of branded biological products or biologics that are created through bio-logical processes instead of chemical synthesis. The world is witnessing an unheard of boom in these medicines. Research and market analysis group Datamonitor estimates the global biosimi-lar market will grow from $243 million in 2011 to $3.7 billion this year. That is a 1,422 per cent growth in just four years. Sandoz, the global lead-er in biosimilars, has estimated that the market could reach up to $30 billion by 2020.

These medicines are popular for treating various cancers, rheumatoid arthritis and ad-verse cardiovascular condi-tions. Patented and brand biologics are expensive and turn out to be prohibitive in case of diseases like cancer and hepatitis. The biosimi-lars are relatively dirt-cheap and are now being support-ed by governments of devel-oped countries precisely for this reason. It is estimated that in 2014, the US accounted for 80 per cent of the global market and European countries are already evolving supportive policies. Initial estimates have pegged drug cost savings at 20-30 per cent in countries that have already approved biosimilars, and one study by global policy think tank rand Corporation es-timates that the US could save $44 billion over the next decade through biosimilars.

Patent cliff Biosimilars are gaining ground for another develop-ment in the biotechnology industry: currently, many global pharmaceutical companies are going to hit the “patent cliff ” or will be facing a situation where a significant number of their patented drugs will be out of a restrictive regime. With a patent, a compa-ny does not face competition in selling the drug for 20 years. But once this period is over, generic drug companies are allowed to manufacture the same drug. Global players like Merck, Pfizer, GlaxoSmithKline and Bristol-Myers Squibb Co are going to lose their patents on many top-selling drugs. EvaluatePharma estimates that $100 billion worth of drug sales will be in jeopardy due to expiry of such patents in 2014 and 2015. By 2018, this amount will increase to $290 billion. This covers popular drugs like acid-reflux pill Nexium (made by AstraZeneca), cholesterol-lowering drug Vytorin (made by Merck), and anti-inflammatory Celebrex (made by Pfizer).

This is advantageous for generic drug manu-facturers. First, the big players have already spent on research and marketing of the drug, thus doing away with the need for spending in these areas. Lower input costs allow generic companies to charge 60 per cent less than manufacturers of

C O V E R S T O R Y



C O V E R S T O R Y

branded drugs. This results in an immediate boost to these companies’ revenue—and their share prices. Generic companies have been quick to snap up the market created by patent expiry. According to Bloomberg, $60 billion in revenue was lost by pharmaceuticals to cheaper generic competition between 2010 and 2012. Another $50 billion may be lost in the next five years.

On the other hand, the big pharma players facing patent expiry are cutting down on human resource and r&d costs, and are thus flush with funds. This extra fund is being used to buy small companies or getting invested in them.

This is leading to a situation where several generic and small biotechnology companies are being bought or merged with existing companies. “We see mergers and acquisitions (m&a) in the healthcare sector being up materially in 2014 at all size levels and across all subsectors,” Jeffrey Stute, J P Morgan’s head of healthcare invest-ment, told Bloomberg. For example, the big com-panies that are going to lose patents are, in fact, ready to pump in money to buy new generic com-panies. Bristol-Myers, flush with billions in cash, has already declared its intention to buy compa-nies manufacturing drugs for cancer, virology and specialty drugs. Merck is looking for similar ac-quisitions. “Based on the strong stock price reac-

tion to strategic m&a announcements, share-holders are telling companies they want them to do m&a,” Stute said.

The bull run continues. But the ghost of 1999-2000 bubble still haunts

the sector. Is the new boom a bubble that might burst?

“There is some hype but it is not a bubble at all and won’t burst. This sector is not facing a

situation similar to what the information technol-ogy sector faced in early 2000s. It is need-based and has to solve many problems,” says an optimis-tic Mazumdar-Shaw. But there is a rider. “In India, no investor or government is even interest-ed in research, which is very important for the growth of the sector,” says Mazumdar-Shaw.

Murali also give his thumbs up to the boom. “There will always be ups and downs. Initially, the sector was hyped but now it is coming close to what is called reality. Now real evaluation of the field is coming,” he says.

But market as an indicator is always fragile and unpredictable. For example, there are some critical voices that raise concerns over the not-so-serious players jumping onto the bandwagon to make quick bucks. In such a case, at the slightest sign of a down in the market, there will be a crash as such investors will quit the sector. However, de-spite the current boom, biotechnology shares have not been overvalued as in 2000. This is an indica-tor that the past may not play out in 2015.

But there are overall apprehensions about the industry. Arjun Kejriwal of Kejriwal Research & Investment Service Pvt Ltd, a Mumbai-based organisation providing financial solutions, down- plays the sector’s eminence in India while hinting that public investment may not be as big as it is made out to be. “As of now, there is no big enthu-siasm to invest in the sector. Whatever investment has been made is because analysts have termed it as a sunrise sector,” he says. It is popularly said money is meant to circulate. Who knows which way it will circulate this time around?

1,422%Increase in global biosimilar market


28-35Cover Story.indd 35 24/02/15 12:08 PM

LIVESTOCK HAS sustained the people of Rajasthan during times of drought or when agriculture was unviable. State government data suggests 80 per cent of rural families in Rajasthan keep livestock in their households, and 35 per cent of the total income of small and marginal farmers

comes from dairy and animal husbandry. But this backup economy of Rajasthan is seeing a slow death because of the state’s narrow-minded policies and the steady disappearance of grazing land due to mining and agriculture.

The 19th Livestock Census released in September 2014 shows that Rajasthan, home to the second largest livestock population in India, has registered a sharp decline in the rate of increase of livestock heads. While livestock population increased by 15 per cent from 2002 to 2007, it grew by less than two per cent in the next five years. Of total livestock, the population of sheep experienced a sharp decline of 19 per cent from 2007 to 2012. The state, which has the highest population of goats, saw an increase of just 1 per cent in their numbers during the same period. However, the steady drop in the number of camels has been the most worrying finding of every livestock census in the past two decades. From 1992 until 2012, the population of camels has declined by more than 56 per cent (see ‘Low on livestock’ p37).

Misguided approachDespite the alarming figures, the state’s livestock policy seems inclined towards protecting only the cow. In 1995, the state government enacted two laws: Rajasthan Go-Seva Ayog Act and Rajasthan Bovine Animal (Prohibition on Slaughter and Regulation of Temporary Migration or Export) Act.

Rajasthan's livestock is facing a threat as grazing lands disappear and laws paralyse traditional economic incentives for keepersJEMIMA ROHEKAR AND JITENDRA | pali and rajsamand, rajasthan

Deserted by policy

L I V E S T O C K E C O N O M Y


36-40Analysis.indd 36 23/02/15 11:10 AM


This January, the Vasundhara Raje-led government appointed Sirohi mla and Raika leader Otaram as the state’s first cow minister. While many Indian states have some sort of legal or executive structure for the protection of cows, none had ever named a cow minister until now. Otaram says, “The ministry wants to open an aadarsh gaushala (model cow shelter) in every district. We want the development of these shelters to be included under the Mahatma Gandhi National Rural Employment Guarantee Scheme.” (See ‘Open forests for livestock grazing’ p38.)

The priority of his department, he adds, is to stop cow smuggling. But experts say the state’s legislation confuses smuggling with sale. Ilse Köhler-Rollefson of Pali-based Lokhit Pashu-Palak Sansthan (lpps), an organisation which works with pastoral communities, says: “The Nagauri cattle breed was in great demand in Bihar and Uttar Pradesh for ploughing. The ban stops the sale of bullocks outside the state. And that leads to deterioration of these cattle breeds.” Experts warn the fall in demand will force keepers to shift to breeds that give

profits, which would result in the neglect of indigenous breeds.

Sinking ship of the desert’After years of neglect, the government recently acknowledged the condition of camels and their keepers. It declared the camel as the second state animal, along with the chinkara, in September 2014. The state Cabinet is also in the process of enacting the Rajasthan Bovine Animal (Prohibition of slaughter and regulation of temporary migration or exports of camel) Bill 2014, on the lines of the cow legislation.

The proposed restrictions on migration have started affecting the sale of camels, the source of livelihood of Raikas, the state’s traditional livestock keepers. Camel herds are composed of a majority of females with only one breeding male. To avoid violent clashes among male camels during winter, their breeding season, Raikas have traditionally sold adult males at Rajasthan’s famous Pushkar Fair held in November every year.

Anticipating legal action and unsure of how the new draft law would affect trade, many camel buyers from neighbouring

Rajasthan, which has the highest population of goats in the country, saw an increase of just 1 per cent in their numbers between 2007 and 2012

While camel and sheep numbers are falling, rise in goat numbers has slowed

1992 2003 2012

(Figures in million)

Source: 19th Livestock Census and Rajasthan animal husbandry department

Low on livestock

Goat

21.6716.81

15.29

Sheep

12.4910.05

9.08

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0.750.500.33

VIKAS CHOUDHARY/ CSE


36-40Analysis.indd 37 23/02/15 11:10 AM


states shied away from the fair last year. The demand fell, leading to a crash in prices. “Earlier, we used to get `30,000-`40,000 for every male camel. But this time, camels were sold for just ̀ 10,000-`12,000, and the younger ones for as low as ̀ 6,000. How will we survive?” asks Gotam, a 55-year-old Raika from Desuri tehsil of Pali district.

While the laws paralyse traditional economic incentives of keepers, a more critical problem threatens the very survival of all livestock.

Shrinking pasture landIn Chhoti Moraval village of Rajsamand district, a thick layer of white marble dust chokes five hectares (ha) of grazing land. Situated in the Aravalli hills, this land was once the ideal pasture for cattle from nearby panchayats. A small natural lake sustained vegetation and provided water. But the land was forcibly acquired by mining companies. The lake slowly dried up, vegetation disappeared and the livestock lost a substantial source of food.

“In revenue records, it is still pasture land,” says Sohan Lal Purohit, a senior government official. “The Supreme Court has strictly prohibited mining on pasture land. But it has been going on unchecked here for eight years.”

Stories of disappearing grazing land persist throughout Rajasthan. The state’s livestock has traditionally relied on gochars (common grazing lands), orans (sacred groves) and forests. Livestock keepers would

migrate over small and large distances in search of fallow land and unsown fields.

“Due to rain-fed agriculture, people used to follow an alternate grazing system. They cultivated half their land and left the remaining half fallow for grazing by domestic animals,” says Anil Kumar Chhangani, associate professor, environmental science, Maharaja Ganga Singh University, Bikaner.

But the 1950s and 60s saw a major shift in Rajasthan’s economy. The Indira Gandhi Canal brought water into seven arid and semi-arid north-western districts of the state. The coinciding Green Revolution meant the population leaned further towards agriculture, adopting tube well- and canal-fed irrigation and intensive cropping practices.

A 1978 paper published in Proceedings of Indian National Science Academy by researchers Amal Kumar Sen and K N Gupta of Jodhpur-based Central Arid Zone Research Institute show that fallow land in the arid districts of Ganganagar fell by 25 per cent, in Barmer by 21 per cent, in Churu by 28 per cent and in Bikaner by 10 per cent between 1957-58 and 1963-64. The paper attributed this change to bringing more land under cultivation for the government’s “grow more food” campaign (see ‘Harvesting doom’).

In the past two decades, agriculture has continued to grow exponentially in Rajasthan. A report submitted by the Agro-Economic Research Centre of Gujarat’s Sardar Patel University to the

You claim to be the country's first cow minister. What is your depart-ment doing for the welfare of cows in Rajasthan?We want to develop the 1,450 regis-tered gaushalas (cow sheds) in the state in such a way that they become self-reliant. We also want to develop

indigenous breeds so that people consider it profit-able to rear them.

But what about small farmers and herds?People will keep cows only if there is potential to earn from them. That is why we want to bring gaush-ala construction under Mahatma Gandhi National Rural Employment

Guarantee Scheme.

What is the status of other livestock animals?As chairperson of Rajasthan Livestock Board, I had started insurance schemes such as Kamdhenu for cows, Avika Kavach for sheep and so on. We have made hostels for children of shepherds who migrate.

The population of camels and sheep has declined greatly. What is the government doing for them?To address this problem, the govern-ment just declared camel the state an-imal and sent a proposal to the Centre to make camel the national animal. It will be a priority for us to stop camel slaughter and we are trying to include camel milk in the Food Security Act.

Livestock keepers say there is not enough fodder. What is the solution?Forests should be opened up for graz-ing. We will send a proposal to the gov-ernment in this regard. We are devel-oping a fodder which grows in 15 days.

Full interview on www.downtoearth.org.in

`Open forests for livestock grazing'

19.38

11.22 11.4810.28

19.2321.74

Mill

ion

hect

ares

22

19

16

13

10

With people taking to agriculture in the desert state of Rajasthan, pastoral lands have seen a steady dip

Harvesting doom

1990-91

Source: Rajasthan government *Total pastoral land consists of permanent pastures, cultivable wasteland and fallow land

2000-01 2009-10

Total cropped area

Total pastoral area*

Otaram DewasiRajasthan's Minister of

Dairy, Devasthan and Gaupalan department


36-40Analysis.indd 38 23/02/15 11:10 AM

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Union Ministry of Agriculture states that from 1990-91 to 2009-10, the gross cropped area in Rajasthan increased from 19.4 million ha to cover almost 22 million ha. In the same period, land under permanent pastures reduced from 1.9 million ha to 1.7 million ha. Cultivable waste land dipped almost 20 per cent to 4.5 million ha.

With shrinking grazing lands, domestic animals are facing a severe shortage of fodder. A 2012 report by the environment assessment team for the Rajasthan Agriculture Competitiveness Project states that fodder is likely to grow increasingly scarce. It estimates that by 2016, only 62 million tonnes of fodder will be available as against the demand of 84 million tonnes.

Minister Otaram, however, does not see any conflict between farms and pasture lands yet. “Before Rajasthan can progress in agriculture, it will have to arrange for water,” he says. “As of today, millions of bighas of land (1 bigha = 0.2 ha) are lying uncultivated. Villages don’t have water for basic needs. So how will people cultivate land? There is no shortage of land.”

Experts, however, caution that the changing pattern of agriculture and industrialisation is resulting in climate change. N V Patil, director of Bikaner-based National Research Centre on Camel, says, “Camels are adapted to high day and low night temperatures. Canal and tube well irrigation and intensive cropping cause an increase in humidity. Combined with

elevated night temperatures, this leads the temperature humidity index level to exceed 70, causing thermal stress to animals.” High humidity allows vectors to multiply and camels fall prey to diseases, some fatal.

Forests: No entry for livestockTola Ram, 45, is a shepherd from Jatungura panchayat in Pali district. His herd of 200 sheep has shrunk to 80 in the last decade. He blames it on the ban on grazing in the Kumbhalgarh Wildlife Sanctuary.

“Before it became a wildlife sanctuary, the Kumbhalgarh forest was open for grazing,” he says. “But forest officials now fine me ̀ 6 per head if I enter with my herd. I paid ̀ 480 in fines last year. What can I do? I have nowhere else to take my animals.”

Under rain-fed agriculture, farms were sown before the rains and would remain off-limits for livestock throughout the season. Keepers would turn to the forests, which would provide animals with a mix of nutritious trees, shrubs and plants. But in 2002, the Supreme Court placed a ban on all human uses, including grazing, in sanctuaries to curb the transmission of diseases to resident wildlife.

Chhangani explains that forests, wildlife and livestock have always been

inter-dependent. “Vegetation in forests around the Aravallis has appeared because of grazing. Sheep, goats and camels help in seed dispersal. When grazing is banned, biodiversity disappears.”

Since the Forest Rights Act, 2006, Köhler-Rollefson says lpps has supported several Raikas to make their claim on these grazing lands. “But the claims have not been acted upon yet,” she says.

The ban on cow slaughter revises our understanding of the animal’s economic utility, placing focus entirely on promoting cow milk. Köhler-Rollefson wants the government to evolve a similar policy for other animals. “The draft camel law, for example, pulls the plug on the current camel economy. Since it is not used as a draught animal anymore and slaughter is not allowed, the government must create other positive incentives for camel keepers. If small scale industries could get some incentives to develop the camel milk market, woollen and other products, it would make a big difference,”she says.

The National Research Centre On Camel says that camel milk has proven benefits in the treatment of Type 1 diabetes, tuberculosis and even autism. But the delay by the Food Safety and Standards Authority of India in recognising camel milk fit for human consumption has stalled the development of this product into a full-fledged business model. The urgent need, however, is to bring a balance between agriculture and livestock rearing. n

In the absence of regular fodder, camels are chronically hungry and predisposed to diseases

By 2016, only 62 million tonnes of fodder will be available as against the demand of 84 million tonnes

JEM

IMA

ROH

EKAR

/ C

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36-40Analysis.indd 40 23/02/15 11:10 AM

T HE UNIVERSE did not start with the Big Bang. It did not have a beginning, nor will it ever end. It has been present forever, says a study which has formulated an equation. The most prevalent

theory of origin of universe says it all began 13.8 billion years ago when everything was condensed in an infinitesimally small point, or singularity, and exploded and expanded. Mathematical calculations and Einstein's Theory of General Relativity explain the Big Bang and what happened after it, but they do not explain singularity or what happened before it. The new study claims to have prepared a model which suggests that singularity did not exist and gives the universe an infinite age. Physics Letters B, February 4

A study has challenged the most prevalent theory on the origin of universe, reigniting an old debate

Resilient to mass extinctions E A R T H H A S witnessed five mass extinctions which changed the face of life on the planet. But plants coped with these events better than animals. The difference was most visible during the Cretaceous-Paleogene mass extinction, caused by the impact of an asteroid off the Mexican coast 66 million years ago. The event killed almost all the dinosaurs, but had limited impact on plant diversity. Negative rates of diversification (a scenario where more species die than are formed) never continued for long periods for plants. Over 20,000 plant fossils were analysed during the study. New Phytologist, January 26

E C O L O G Y

S C I E N C E

Sleep loss means weight gain E X P E R T S H A V E claimed for years that lack of sleep leads to weight gain. It has now been proved true. Not only does a sleep-deprived person eat more, he/she also tends to eat more fat and less carbohydrates. It was thought that hormonal disturbances were behind this, but a study says salience network, an area of the brain, is the key. The five-day-four-night study on 34 people, whose brains were monitored through MRI, found that sleep-deprived subjects had an increased connectivity in salience network. It has a key role in determining responses to hunger stimuli. Scientific Reports, February 3

There was no Big Bang

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Iron, key to strong beaver tooth B E A V E R S D O not brush yet their front teeth are strong enough to cut trees. This is because their teeth contain small amounts of iron that protect the enamel from wear and tear and acidic substance. Iron is present in an unstructured phase around the well-ordered "nanowires" that form the enamel's core. The find can be used in studies on tooth decay in humans. Science, February 13

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41S&T Bytes.indd 41 20/02/15 3:35 PM


CANCER IS one of the few scourges that have been known for thousands of years but scientists are yet to find a de-finitive treatment for it. According

to who, cancer is a leading cause of death worldwide, accounting for 8.2 million deaths in 2012; the number will increase by 70 per cent in the next two decades. The problem is there are hundreds of types of cancer, and they are all caused by cells dividing interminably. So, conventionally they are treated by excising malignant tumours or backing up the surgery with drugs, chemotherapy and radiotherapy. But these standardised treatments evoke dif-ferent responses, depending on the physio-logical and genetic make-up of the patient.

This crudeness of treatment, however, is rapidly changing. In the past few decades, scientists have realised that the possible cure lies in the patient’s cells, in the genes. Decoding the genes will not only help un-derstand the tumours and predict the risk of cancer but tailor the treatment (see ‘Tailor thy treatment’ on p43).

Since making its debut in the early 1990s,

personalised cancer therapy has revolution-ised cancer screening, prevention and treat-ment. It is broadly classified into two types: targeted therapies and pharmacogenomics therapy. While pharmacogenomics focuses on the way a person’s genes control the body’s immune reaction, in targeted therapy, drugs are targeted on specific molecules, proteins or genes in a tumour that contribute to cancer.

Of late, targeted therapies are in vogue in India, says P P Bapsy, who heads the oncology department at Apollo Hospital, Bengaluru. It is a blessing for those suffering from ad-vanced stages of lung and kidney cancer and early stages of breast cancer. “We use target-ed therapies as the first line of defence in ad-vanced stages of lung and kidney cancer.”

However, the treatment is still in its nas-cent stage.

To tailor the therapies, scientists use the patient’s genetic make-up and tumour bi-ology. But tumour sampling and genetic or molecular testing (for biomarkers to iden-tify gene mutations) is time consuming and expensive, often ranging from `5,000 to

`25,000. Even if one gets it done, mutations can be targeted only with approved drugs or a new drug under clinical trial. This makes the cost of therapy prohibitive even for those in high income countries.

Gordon B Mills, an expert in the field who has several research studies and awards to his credit, demystifies the scope of person-alised therapies. “Our ability to analyse tu-mours at a molecular level has demonstrated remarkable heterogeneity between patients, that is likely to explain the plateau,” says Mills, chairperson of department of systems biolo-gy at the University of Texas M D Anderson Cancer Center, US. For instance, there are four to 20 kinds of ductal breast cancer, each requiring specific therapy. This understanding has resulted in only 1-2 per cent of improve-ment in breast cancer treatment in the past 15 years. Besides, all types of cancer do not have personalised treatment options. Mills says, “Even following testing, only about half of patients have abnormalities that could be treated with targeted therapies. Only about 15 per cent of patients who undergo testing

The war on cancer intensifies as scientists try to tailor treatment according to a patient's genetic make-up INDU MATHI S

H E A L T H

Getting close and personal

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42-43Health.indd 42 23/02/15 11:11 AM


actually received targeted therapies.” Besides, in some patients the therapy abruptly stops working for unknown reasons.

Martine Piccart, president of the European Society of Medical Oncology (esmo), in a patient’s guide released in 2013 admits this limitation. “Currently, we are not yet in the era of personalised oncology but in the era of stratified oncology, which means we are able to classify cancers according to critical targets against which we hope to de-velop effective drugs,” Piccart states. Modern technologies such as deep dna sequencing will be powerful tools in the future allowing us to identify drugable mutations, he adds.

Making of wonder drugsAt present, personalised therapies are most-ly restricted to clinical trials and may take some time to get approved. Research is also under way to decode cancer biology and to find more molecular weak points in differ-

ent types of tumours to perfect personal-ised therapies. In recent years, a paradigm shift has also been observed in targeted ther-apy research wherein researchers are now increasingly focused on therapies that can trigger the immune response against cancer. The November 27, 2014 issue of the journal Nature published five studies on personalised therapies that target immune system to act against cancer.

For example, certain tumours can express a protein called PD-L1. The protein sends the immune system to hibernation when it binds to PD-1 receptor, and the cancer cells remain undetected. Targeted therapies can block either PD-L1 or PD-1 to activate the immune system.

A study published in November 2014 found that targeted therapies that block PD-1 receptors are successful in treating bladder cancer. The researchers used an-ti-PD-L1 antibody drug to target tumour

in bladder and found high response rates from the immune system of the patients. The drug was considered a breakthrough by the US Food and Drug Administration in February this year.

Clinical trials on targeted drugs are on full-swing across the world and the key play-ers include global pharma giants such as Novartis, AstraZeneca and Pfizer, among others. According to a report by ims Institute for Healthcare Informatics released in 2014, there are currently 374 experimental can-cer drugs in mid-stage trials, and the glob-al spending on oncology drugs is expected to reach US $100 billion in 2018.

Although personalised therapy for can-cer is well known, the concept can be used for treatment of diabetes, heart disease and Alzheimer’s that are often caused due to ge-netic factors. To support studies on personal-ised treatment for bowel cancer, asthma, hy-pertension and lupus, UK’s minister for life sciences, George Freeman, in January this year unveiled a US $21 million funding. That month, US President Barack Obama also an-nounced a plan for his country to be a world leader in precision medicine.

Personalised therapy requires genetic testing which is not only time-consuming but also expensive. Not all kinds of cancer have personalised treatment options

Tailor thy treatmentPersonalised cancer therapy is designed by identifying tumour biomarkers which can be genetic materials, protein or metabolic profile that can predict the patient's response to a specific therapy

Genetic/molecular profiling Prognostic markers

Markers predictive of drug sensitivity/ resistance

Personlised drugs

Markers predictive of adverse events

Source: University of Texas MD Anderson Cancer Center, US

42-43Health.indd 43 23/02/15 11:11 AM


FOR MOST of us, the very mention of Assam conjures up an image of lush tea gardens sprawling over vast stretches of the state. Assam is the

world’s largest tea-growing region, and its tea has gained global prominence for its strong flavour and bright colour. About half the workforce in Assam’s tea gardens is women, as their nimble fingers are consid-ered better for plucking the leaves. But what often goes unnoticed is the hard work it re-quires and the accompanying health risks.

The plucking process is a highly repetitive task, involving long hours of hand work. “Pluckers work for over seven hours a day, with an hour-long lunch break and a 10-minute drinking water break in between their shifts,” explains Nandita Bhattacharyya, associate professor at the College of Home Science, Assam Agricultural University (aau), Jorhat. The tea-plucking basket further aggravates the burden of work as workers have to carry heavy load throughout the day. The problem could soon be resolved as a worker-friendly basket, aimed at reduc-ing physiological stress of the workers and increasing their work efficiency, is likely to hit the market.

The new basket has been designed by the College of Home Science, aau, and funded by the National Tea Research Foundation (ntrf). The initiative followed an ntrf-sponsored study in 2003 on “posture assessment of workers in performing different activities in tea gardens”. The study highlighted that the tea-plucking basket is a major reason for various health problems faced by women working in tea estates.

Weighty issuesThe bamboo basket traditionally used by pluckers is strapped to their back, the belt of which rests on their head. The full basket,

T E C H N O L O G Y

Comfort backpack An improved plucking basket promises to alleviate muscular pain and fatigue,

two major health problems faced by tea garden workers

AMARJYOTI BORAH | jorhat, assam

SAYANTAN BERA / CSE

44-45Technology.indd 44 20/02/15 3:35 PM


which weighs about 5 kg, is emptied into a bigger basket. Throughout the day, the big basket is loaded four to five times. When a shift gets over at 5 pm, a worker walks several kilometres to deposit the tea leaves, carrying the big basketÐ a load of at least 20 kgÐ on her head. This is much more than the permissible limit of 10 kg, prescribed by the National Institute of Occupational Health and Safety. Moreover, the entire load falls on the head and neck. “This exerts pres-sure on the spine and back and often results in neck and back pain. The workers also have difficulty sleeping at night because of the pain,” Bhattacharyya says.

“It becomes difficult for us to continue working once we develop body pain, more so because we are paid minimal wages and do not have health insurance,” says 38-year-old Sumi Orang, who works in Hahchurah tea estate in Sonitpur district.

Easy on bodyThe new basket was conceptualised keeping in mind the ergonomicsÐ the body structure of the workers and their working conditions.

“This basket fits the back curvature of the women, which keeps it in place unlike the existing round basket,” Bhattacharyya says. The “tapering shape”

also allows easy movement through the bushes. The basket is made of cane and has more capacityÐ it can hold up to 8 kg of tea leaves. But since it is loosely woven, its weight is almost as light as the bamboo basket, which is more compact. The new basket also allows passage of air and water during the rains, which ensures that the leaves are not damaged. Its belt can be adjusted to carry the basket like a school bag so that the weight does not fall on the head but is distributed evenly on the shoulders (see ‘Light load’).

Bhattacharyya and her team conducted initial trials of the new basket in September-November of 2004 in Silikha tea garden in Jorhat district. After that the design re-mained at a discussion stage for further im-provements. During the trial period, the heart rate, cardiac cost (strain on the heart during work) and muscular pain of the work-ers were monitored and the results were com-pared to the three parameters while using the traditional basket. Bhattacharyya says muscular stress on the head, neck and upper back as well as pain in the buttock re-duced to a great extent while using the new basket. Muscular pain reduced by 60 per cent. The average heart rate was recorded as 96.26 beats per minute, compared to 102 beats per

minute in case of the existing basket. The basket is now ready to be manufac-

tured for commercial purpose. Researchers are also re-designing the bigger basket for the plucked leaves.

While the existing basket is priced between `100-`300, the new one will cost ̀ 650-`700 due to design modifications and use of skilled labour. But the price is like-ly to reduce if it is purchased in bulk. “It will be a win-win situation for both tea garden owners and workers. Improved health of workers will result in more output for the tea garden,” Bhattacharyya says.

Tea garden workers who tried the new basket are eager to use it. “It will help us pluck more leaves but would not strain our back. We hope the new basket gets introduced in all tea gardens soon,” Orang says. Tea garden owners are interested too. “We will approach the university for some baskets,” says Pankaj Gogoi, director of Khuwa tea estate. “If it can ensure workers’ health and improve produc-tivity, there is no reason not to use it,” he adds.

Vigyan Prasar, an autonomous body un-der the Ministry of Science and Technology, has expressed interest to promote the product. Researchers hope entrepreneurs would come forward to develop the basket commercially and create a manufacturing unit as it will generate employment opportu-nities, besides addressing the health problem of tea garden workers.

"We develop body and shoulder pain very early. After working for a few years, most women have difficulty sleeping at night because of the pain" Ð Rupa Kurmi, tea grower in Amchanga tea estate in Sonapur sub-division, Kamrup Metro district

"Women in tea gardens have to carry heavy load. Workers who tried the new basket reported reduced muscular stress on the head, neck and upper back"Ð Nandita Bhattacharyya, faculty, Assam Agricultural University, Jorhat

Improved features of the ergonomically designed basket

Light load

New design

keeps basket in place

Belt can be

adjusted to carry the basket like a school bag so that its weight is

distributed evenly on shoulders

Bigger in size, can

hold up to 8 kg of tea leaves

Loosely woven to allow

passage of air and rainwater so that

leaves are not damaged

44-45Technology.indd 45 20/02/15 3:35 PM

OUR BODIES and minds are prisoners of modern science. Not a day goes by without newspapers, TV channels and the Internet plying us with the latest medical “insights” into the workings

of maladies such as diabetes, or the promising results of a clinical trial of a drug for Alzheimer’s.

As most such studies are published in peer-reviewed journals of repute, even peers and practising physicians trust them, let alone the lay public.

However, the truth is shockingly contradictory. In the last one decade, a series of metastudies (study of studies) has revealed that a large number of studies, especially in medical science and psychology, are either shoddy or statistically manipulated, and hence false.

John Ioannidis, an epidemiologist at Stanford University, was the first to blow the whistle in his provocatively titled 2005 paper, Why Most Published Research Findings are False. He demonstrated that in studies characterised by researcher prejudice, greater flexibility in design and technique, high glamour quotient, and high financial stakes (all of which is true of most studies), the researcher is likely to come up with an erroneous result.

In 2012, researchers at a US biotech firm, Amgen, reported that they could replicate

no more than six of the 53 “landmark” studies in cancer research. Likewise,

in 2011, researchers at Bayer found they could not verify more than 20-25 per cent of the research papers on cancer, cardiovascular and women’s health studies. Ominously, between 2000 and 2010, no fewer

than 80,000 patients enrolled in clinical trials based on

research that was later retracted because of

errors or fraud.

Arguably, that is only the tip of the iceberg. Most drug companies are extremely secretive about data on clinical trials. Ben Goldacre, a British doctor and author of the bestseller Bad Science, is campaigning for penalising them if they don’t make full disclosure.

To verify, and not simply trust, a research finding is the lynchpin of modern science’s prerogative to objective truth. That scientists are not interested in replicating the findings of their peers is behind the current crisis of fraudulent research.

Statistical errors, inadvertent or otherwise, is just one of many factors that perpetuate bad science. Peer reviewers have been found guilty of oversight when it comes to spotting errors. To make matters worse, professional rivalry coupled with competition for a shrinking pool of funds and jobs encourages a publish-or-perish culture, which clearly affects the quality of papers published.

There is danger that some of these shoddy scientific claims might get reflected in medical practice. Besides, it also means that precious funds, a significant amount of which comes from the taxpayers’ pocket, are squandered on bad or useless research.

Alarmed by the scale of the problem, some organisations have begun to put replication back on the table. Notably, in 2012, plos one, an open access journal, launched the Reproducibility Initiative, a service through which life scientists can get their work verified by an independent lab for a fee.

Unfortunately, even as India expands its medical research footprint, there are no signs of alarm over this worrisome issue. How much of Indian medical research is verified is anybody’s guess. But it’s high time the scientific fraternity started a public debate on this subject that has bearing not only on the quality of research but also on the lives of millions of Indians.

Ioannidis is all for making it a public affair but he is not very sanguine that this will happen quickly, though. He told The Atlantic magazine: “It’s difficult to change the way that everyday doctors, patients, and healthy people think and behave.”

Hope he’s wrong.

C O L U M N

Disease of flawed insights Independent verification of medical research is a must to ensure that the findings are correct

HEDGEHOG TALES RAKESH K ALSHIAN

TARIQUE AZIZ / CSE


46Column.indd 46 20/02/15 3:36 PM

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Tibetan landscape may soon disappear

In the 1980s, when very few people visited Tibet, MICHAEL BUCKLEY, an Australian settled in Canada,

wrote the first Lonely Planet guide to the region. A regular visitor to the world's highest plateau for the past 30 years, Buckley says he has

witnessed Tibet's landscape deteriorating. He recently wrote a book, Meltdown in Tibet, in which he has held China responsible for the

degradation. In an interview with ANUPAM CHAKRAVARTTY, he says China has big plans to build mega dams in Tibet and is collaborating with multinationals to extract shale oil and minerals to provide electricity and

fuel to its urban centres and industries. Edited excerpts

DENNIS JARVIS

1-15 MARCH 201548 DOWN TO EARTH

48-50Interview.indd 48 20/02/15 5:09 PM

From tourist guidebooks, you shifted to writing on Tibet's environment. What made you write Meltdown in Tibet?When I first arrived in Tibet in the 1980s, the landscape was fairly pristine. There was not much activity. There were no mines or dams. I always assumed that this landscape at a high altitude, with snow-capped mountains, grasslands and beautiful lakes, would be there for future generations to see. But the scenario is rapidly changing, especially after the train to Lhasa was started in 2006. I thought somebody should say something about this because it is going to get worse. If the Chinese authorities do not stop what they are doing, the landscape will soon disappear. You might ask, “How can a landscape disappear?”

The fact is that if you have mining, if you remove mountain tops to extract minerals, if you change or drain a lake, you can change the whole ecosystem within a matter of years. And we have already witnessed this in some places. This upset me and I started to write about it.

What is the significance of Tibet for the whole of Asia?If you look at the map of the Tibetan plateau, the highest plateau on Earth, there are 10 major rivers emerging from it. That puts Tibet in an unusual position. It is a provider of water to all of South Asia, East Asia, to about 10 different countries in the downstream. Over 2 billion people depend

on that water. If somebody wants to divert that water, which is what China wants to do, it becomes a serious issue for the people living downstream.

Not much information is available on what is happening in Tibet. What does your story say?Journalists do not have access to central parts of Tibet where most of the mining activity is taking place. They may get access to eastern Tibet in Amdo and Kham provinces. But if you go as a tourists, you have a better chance of getting access to mining areas. I always go as a tourist, which is what I am. I am a freelance journalist, not affiliated to any news agency.

Hydropower and mining projects are under way in Tibet to fuel industrial projects in southwest China

Cost of China's growth

T i b e t a u t o n o m o u s r e g i o n

Q i n g h a i

Yu n n a n

S i c h u a n

G a n s u

Hydroelectric power projects: Most of the operational, under-construction and proposed projects are concentrated in southeastern Tibet

Source: Meltdown in Tibet

Mining: Oil, shale and natural gas are being mined in northwestern Tibet, while uranium, copper, rare earths are present in southern Tibet. Gold deposits lie in eastern and north-eastern Tibet

C H I N A



I N T E R V I E W

The lack of information in the public domain is also because there is no link between Tibetans living in Tibet and those staying outside—their communication lines are blocked. They cannot send e-mails critical of the government because they will get arrested. They do not have access to usual social networks, such as Facebook, in China. Tibet does not get news from the outside world, and news from Tibet does not go out either. So we do not get a clear picture of what is happening.

What is China's big plan in Tibet? What is it seeking to do by building dams across rivers or diverting rivers?Chinese authorities do not reveal much of their plans. They will release information only after the plan is executed. But it is clear that they plan to construct mega dams on Tibet’s rivers and link the hydroelectricity generated to national grids. The developers have saturated the rivers in southeastern China with dams and are now looking towards western China. They are moving to higher grounds. They are adding cascades to the dams to ensure turbines run smoothly. They have built cascades in the lower Mekong and are now moving to its higher reaches in Chambo, which is in Tibet.

The demand for electricity is not much in Tibet because only 6 million people live in the whole of the Tibetan region. They would fit into half of the Chinese city of Chongqing. You do not need a 500 MW dam for Tibet. The electricity generated from these dams will be transmitted to areas like Beijing and Shanghai, where there is demand for power, and to factories in Chengdu and Chongqing in southwest China where most of the industries are planned. Basically, they are exporting power from Tibet.

The other thing that is planned is water diversion from eastern Tibet to northeast and northwest China, where there is a huge demand. Northwest China has the Taklamakan desert where there are plans for mining, and you need large amounts of water for that. There is already mining going on for shale gas, tar sands, shale oil and oil sands, to name a few. In the northeast, they need water for people. There are about 300 million people in this part with very few water

sources. They already have two diversions running from the Yangtze river. The third is planned from the Tibetan region. Nobody seems to know how exactly these plans would be executed, but it will probably involve a huge amount of tunneling and a large number of dams. The facts and data have not been released.

There are also big plans for mining in Tibet. The region is a major source of lithium, copper, gold and silver, which are desperately sought by China. Lithium is used in batteries

for electric vehicles, among other things. In future, there will be a huge demand for lithium in China. It could come from Chile and Bolivia, too, but getting the mineral from Tibet will be a lot cheaper.

Is it just China which is in need of these resources? Who are the people operating in these areas and who gets the benefit?I am from Canada and the major mining companies involved in Tibet are Canadian companies. There are about a dozen companies helping their Chinese counter-parts with exploration by bringing the technical know-how and supplying mining equipment which are not locally available. But when it comes to actual mining, these companies get bullied by their Chinese counterparts. Once Chinese companies get the required technical support or understand various processes involved in mining, foreign counterparts are shown the door. It has been happening for many years.

There are also ethical and environmental

violations by these Canadian companies. There have been movements in Canada to make these companies conform to the same standards in China that are applicable to them in Canada. The biggest mining company, China Gold International Limited, has 60 per cent of its stake in a Chinese government-owned corporation, but it is listed in the Canadian stock exchange in Vancouver. It has a big mine in Gyama in east Tibet. This is actually a Chinese company masquerading as a Canadian one and raising money in the Vancouver stock exchange.

There are European companies involved as well. Shell, an Anglo-Dutch company, has a major contract for shale oil drilling in Sichuan. There are half-a-dozen European companies manufacturing silicate chips. American companies such as General Electric and Canadian companies such as Bombardier are involved in the train project between Lhasa and the rest of China. The bottom line is that Tibetans do not have any control over their resources and the foreign companies are plundering these resources.

What are the specific impacts of various projects on Tibet and its neighbourhood?I am not an expert in climatology but China claims that environmental degradation that is happening in Tibet and elsewhere is because of climate change. But the fact is that China is driving the climate change. It is the biggest emitter of carbon dioxide (CO2). It has surpassed the United States. In 2013, 27 per cent of CO2 came from China. (US was at 15 per cent and India, 6 per cent). This is contributing to the glacial melting in the Himalayas. The rate of melting in Tibet is twice as fast as global melting of glaciers.

The other factor that is contributing to the glacial melt is the emission of black soot due to inefficient burning of fossil fuels. Black soot is essentially composed of tiny black specks. They accumulate on glaciers, turning them grey. This attracts more heat from the sun. The more the black soot accumulates on glaciers, the more rapid is the melting. This has been underestimated by some scientists but it possibly contributes to 50 per cent of the melting. We still do not know as we do not have exact data.

"You do not need a 500MW dam for Tibet... China needs the power... So the plan is to hook up these power generating dams to the national grid and feed factories in Chengdu and Chongqing in southwest China, where most of the industries are planned"



WHAT'S GOOD for biodiversity is not always good for business—or so it appears. The long overdue guidelines on access and benefit sharing (abs) of biological resources

notified by the Union Ministry of Environment, Forest and Climate Change (moef&cc) in November 2014 is proving to be bitter physic for the makers of ayush or traditional medicines who fear their healthy profits will decline. ayush is an acronym for traditional Indian medical systems of ayurveda, yoga, unani and siddha apart from homeopathy.

In just two months after the guidelines were issued, states have issued notices to hundreds of units that use herbs and plant resources to make traditional medicines to pay the abs royalty. The rules, intended to promote sustainable use of bio resources, give state biodiversity boards (sbbs) the power to determine the amount of royalty or benefit sharing to be paid by makers of ayush products that are enjoying a boom. But if the cries of protest are anything to go by, industry is unlikely to accept the new dispensation meekly after the free run it has enjoyed for the past decade through successful lobbying.

Although India passed the Biological Diversity Act (bda) in 2002, the mandated abs guidelines were held back by the government because of pressure from the ayush industry. With traditional systems of medicine increasingly finding favour with patients who suffer from a host of ailments and diseases that the allopathic system is unable to treat, the market has been growing at a fast clip both here and abroad. The reluctance of moef&cc to notify the rules for so long is said to have helped ayush makers to avoid paying any royalty to sbbs, a sum that is said to run into several thousand crore rupees. An unnamed official of the Kerala sbb was recently quoted as saying the states lose as much as `10,000 crore annually while the apex

National Biodiversity Authority (nba) is deprived of another ̀ 5,000 crore.

Under the new rules, domestic and foreign companies will have to pay 0.1 to 1 per cent royalty on their gross sales of products using biological resources and traditional knowledge. Those who fail to do so face jail terms of three to five years with fines. abs has to be paid by any ayush unit that extracts plant based materials for commercial purposes. Domestic manufacturers cannot use these bio resources without getting the permission of their respective sbbs, while foreign companies must approach nba.

sbbs, fund-starved and champing at the bit all these years, have been enthusiastic in issuing notices to

ayush units in recent weeks. News reports say that the Kerala ssb, the most exemplary in protecting its bio resources, has issued notices to 800 ayurvedic manufacturers while a newly galvanised Maharashtra sbb has asked 1,500 ayush units in the state to comply with the latest bda guidelines.

But these guidelines are vague and confusing, claims industry which is palpably worried by the hit it will take on profits. For the industry’s lobby group, the Ayurvedic

Drugs Manufacturers Association (adma), the key issue revolves around what is known as the “normally traded as commodities” or ntac list. Those plant varieties listed as ntac are exempt from the purview of bda.

The ntac list has been highly controversial. In 2009, the environment ministry had put 190 bio resources on this list, prompting an outcry from conservationists who alleged this had been done at the behest of industry and trade which had brought in the powerful Ministry of Commerce to weigh in on their side. adma, which is confronting the newly empowered sbbs, now says the ntac is being “wrongly interpreted”.

Hopefully, however, the fight between profits and conservation may be more evenly matched this time.

C O L U M N

PATENTLY ABSURD L ATHA JISHNU

Bitter ABS medicine for AYUSH Manufacturers cry foul as they receive notices from state boards to pay royalty

TARIQUE AZIZ / CSE

www.downtoearth.org 51 1-15 MARCH 2015

51Column.indd 51 23/02/15 11:11 AM

O P I N I O N

INDIA'S CLIMATE DILEMMA

Will India toe the US line of capping carbon emissions from farming?

VIJETA RATTANI

SORIT / CSE

52-53Opinion.indd 52 20/02/15 3:37 PM

INDIA SEEMS to be bowing out of its long-standing position on climate change, as far as the farm sector is concerned. On January 19 this year, the Prime Minister’s Council on

Climate Change, in its first meeting since it was re-constituted under the current government, discussed cutting emissions from the agriculture sector. The proposal was put forth by the Union Ministry of Agriculture.

Over the past few years, developed countries have been campaigning to force developing countries to cut emissions from agriculture and livestock. Till now, India has vehemently opposed bringing farm emissions within the ambit of climate action in an effort to safeguard its farmers, who are mostly small and marginal landholders. This has been an important component of its international climate position. The new proposal, if accepted, will dilute India’s position on the matter.

According to World Resources Institute’s (wri’s) 2011 data for sector-wise emissions, agricultural emissions account for 15 per cent of total greenhouse gas emissions worldwide. The same institute ranks electricity and heat sector as contributing 36 per cent of total emissions. Total greenhouse gas emissions from India in 2011 were 2,486.17 million tonnes of CO2, of which the agriculture sector accounted for 14 per cent. In line with the global trend, the energy sector was responsible for 77 per cent emissions.

The Western countries, led by the US and the EU, have pressed for the need to reduce emissions from the agricultural sector as they consider it a “significant” proportion of the total emissions, especially in developing countries that have substantial area under agriculture and large population of livestock.

During the 2013 Warsaw climate change summit, India and China vehemently opposed the US’ and the EU’s proposal to adopt emission targets for the agricultural sector. Moreover, in India, the agricultural sector, which is a major source of employment, is vulnerable to the vagaries of extreme weather events. It hardly uses modern agricultural techniques and equipment. Therefore, India has stressed on the need for assistance from developed countries to adapt to climate change.

But now, with the latest proposal to discuss reduction in agricultural emissions, India seems to be giving in to the developed countries’ agenda. On a general note, climate negotiations are West-centric. An overview of the climate talks makes this clear.

The cornerstone of the climate regime, enshrined in the UN Framework Convention on Climate Change, is the principle of equity. This principle advocates “differentiation”, meaning it recognises the historical responsibility of Western countries to address climate change while taking into account developing countries’ right to growth and their need for

financial and technological support from developed countries to undertake domestically suited climate actions.

However, from the Kyoto summit in 1997, which was the first comprehensive global summit on climate change, to the Lima summit in December 2014, this landmark principle of equity has been diluted. Developed countries have nearly succeeded in bringing all countries, whether developed or developing, on the same platform to address climate change. Instead of focusing on historical emissions, current international climate change negotiations are deliberately focused on current emissions, in the process denying developing countries their basic right to grow and develop.

India, like other developing countries, has meekly bowed down to the Western countries’ ploy of altering the course of the climate talks to suit their interests. The Lima climate change summit testifies to this.

In the final text adopted at Lima, the principle of differentiation expressed in the legal language as “common but differentiated responsibility” has the additional phrase “in the light of national circumstances”. This is touted as one of the major outcomes of the Lima summit, where the Western

countries in a rather hegemonic manner re-interpreted the basic principle of the 1992 UN Convention.

Thus, in one stroke the rich countries shrugged off their historical responsibility to address climate change, limiting the developing countries development right. It is against this backdrop that the latest proposal in India to discuss cutting emissions from the agriculture sector needs to be understood.

Though it has not been approved yet, it could very well happen in future meetings. If approved, this could be disastrous for developing countries in view of the approaching Paris summit this December, where a new climate agreement is scheduled to be formalised.

With growing economic and political clout, India is a crucial player in the climate regime. The meeting of Prime Minister Narendra Modi with US President Barack Obama on occasion of the Republic Day was crucial in this regard, when both leaders reiterated the need to address climate change and hoped for a successful outcome in Paris. Now in the run up to the summit, India must not under any circumstance give in to the demands of the West to further cut its emission targets or announce its peaking year or add agricultural emissions under climate action.

It is high time India got its act together in securing its right to develop and be energy sufficient. It should fight to bring equity back on the climate agenda by agreeing for a review of “intended nationally determined contributions” and play a pivotal role among developing nations to secure an inclusive and fair climate deal. n

During the 2013 Warsaw summit,

India and China had vehemently opposed the US' and the EU's proposal to adopt

emission targets for the agricultural sector


52-53Opinion.indd 53 20/02/15 3:37 PM

W I L D L I F E

Pesky pets

One of the first species domesticated by man, the pigeon is now an invasive species and a pest in many parts of the world KAUSHIK DAS GUPTA

THEY ARE not the cleanest neighbour unless you prefer a house that looks like someone is throwing raw eggs at it on a regular basis. Almost every day, we have to scrub away crusty pigeon poop,” lamented Durban resident, Walter. He believes the South African city has been overrun by pigeons. “They get easy

access in open plumbing ducts and find good nesting area on pipes and parapets inside the duct. They make nests and lay eggs there. The ducts are full of bird droppings,” says his neighbour, Chandran.

Durban is not the only South African city with a pigeon problem. A document of the country’s urban affairs ministry notes, “The appearance of many of our finest buildings is marred by the birds. They render foodstuffs inedible; introduce insects, mites and diseas-es harmful to man and cause breaches of the Public Health Act. Pigeon droppings damage masonry, block drains and cause structural damage.” The pigeons in question are

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54-55Wildlife.indd 54 20/02/15 5:53 PM

feral. In August 2014, the country’s Department of Environmental Affairs listed the feral pigeon as an invasive species. “Activities including importing, breeding, trading and translocation of pigeons are now listed as prohibited,” according to a press release of the department.

Daniel Haag Wackernagel, a biologist based in Basel, Switzerland, who has studied pigeons for more than 20 years, says that sev-eral other countries, including the US, have declared the feral pigeon as a pest and their menace has earned them the derisive moni-ker, “flying rats”, in many parts of the world. “Feral pigeons are free-roaming descendants of once-domesticated birds. The pigeon was one of the first bird species domesticated by man, more than 5,000 years ago. Millions were raised in ancient and medieval Asia and Europe. They arrived in Africa and the Americas with the Europeans in the 17th century. Another batch appeared in Africa with the Asians two centuries later,” the biologist explains.

Wackernagel ascribes the menace from the birds to several factors. “The ideal habitat and nesting sites for pigeons are sea-cliffs, preferably those affording caves and crevic-es. But the pigeon is a highly adaptable bird. High buildings that border streets form gorges resembling rocky cliffs, their original habitat. Pigeons, thus, adapt easily to the structure of our towns. Vast food sources are available nearby through accumulation of rubbish, accidental spillage and deliberate feeding by people,” he explains.

Wackernagel adds that in most parts of Europe, Asia, North America and Africa there is one pigeon for every 20 human be-ings. “The explosion of the pigeon population in many parts of the world is, in some meas-ure, due to the large food supply. After World War II, food became cheap in relation to in-come. This was initially so in parts of Europe and America, where society produced abun-dant pigeon food through wasteful practices. Pigeons living in urban areas have expanded their originally granivorous diet to eat all kinds of filth, to the extent that town pigeons are now omnivorous,” says the biologist. Besides, in most parts of the world, feeding pigeons is regarded as a wonderful experi-ence. “Feeding animals is probably an innate

human instinct. Children in particular enjoy feeding pigeons,” he adds.

Chandran agrees, reminiscing days when he would huddle with his grandparents feed-ing grains to pigeons. Wackernagel says this is not necessarily a healthy practice (see “The Basel experience”). “Pigeons are extremely fast learners and immediately get used to a reliable food source. Knowing quickly the habits of their fanciers, the birds arrive in

good time for a rendezvous with the food provider. Pigeons can eat their daily food requirements of 20-50 gram within a few minutes. And as they are fed, they no longer have to look for food by foraging for hours and can spend their gained ‘spare time’ in breeding instead,” he explains.

Curt Vogel, a German biologist who has studied the feeding habits of pigeons, says, “Pigeon milk is produced under the influence of the hormone prolactin, by cells in the wall of the crop of both parents. It is extremely nourishing since it consists mainly of proteins and fats, together with water.” This concentrated, rich nutrient enables nestlings to double their weight within 34 hours after hatching. That is why pigeons are one of the fastest-growing vertebrates. Crop milk makes the parent pigeons independent of special foods during the breeding season, while an insect-eating bird like the great tit, and even seed-eating birds like finches, have to search diligently for adequate nutritious food—small insects—to offer to their nest-lings. “So parent pigeons can simply enjoy chocolate, sausage or whatever they find to eat and transform it into ‘all-round baby milk,’” Vogel adds.

Pigeons also transmit diseases and para-sites that can attack man, says Wackernagel. “They pass infections like ornithosis, crypto-coccosis and toxoplasmosis to people. Soft ticks like Argas reflexus, fleas and red mites that disperse from pigeon-breeding places can attack people,” he adds.

The expansion of the bird population, besides being inimical to humans, is not good for the pigeons themselves. “As the density of nesting and roosting pigeons increases, the quality of life of a population deteriorates, just as in human populations,” says Wackernagel. Excessive population density exposes the bird to diseases and attacks from parasites. Crowded breeding places make pigeons behave more aggressively, which mostly affects nestlings and juveniles that are the weakest members of the population. “Pigeons would probably never behave this way in their natural environments. Territorial behaviour as well as other regulatory mech-anisms, including predation by birds of prey, would keep pigeon population at levels where they lead less stressful lives,” he adds. n

The Basel experienceI N 1 9 6 1 , Basel in Switzerland began rapaciously culling a population of what the municipal authorities believed were 20,000 pigeons. Trappers and marksmen depleted some flocks by 80 per cent, only to watch them return, sometimes in greater numbers, within weeks. The shooting spree went on for 25 years. The city finally stood down, having killed 100,000 pigeons. There were still 20,000 pigeons in Basel!

In 1988, biologist Daniel Haag Wackernagel embarked on a programme to check the city's pigeon population. "Our intention was to reverse attitudes towards pigeon-feeding, convincing the public that feeding ultimately harms the pigeons and is counterproductive. We demonstrated the negative effects of feeding with pamphlets and posters and tried to explain the complicated relationship between feeding and overcrowding by pigeons," he says.

Wackernagel's team built supervised pigeon lofts to house a small but healthy population of pigeon. "These lofts prove that we do not intend to exterminate the pigeons at all; we want to develop a small but healthy pigeon stock," the biologist notes.


54-55Wildlife.indd 55 20/02/15 5:52 PM

G O O D N E W S

Insured by community

GONI BAI, a woman from the Gond tribe in Madhya Pradesh, became a widow last year. Her 35-year-old husband, Lakhan, died of an un-

known illness. The family was already in debt and Lakhan’s sudden death came as a blow to his wife as she had no means to repay the medical arrears. It was in this time of crisis that a community-run insurance programme came to her rescue.

The cooperative effort is an initiative of nearly 7,500 women from villages across Panna district in the state. Most of them are members of various self-help groups (shgs), although a non-shg member can also be a part of this initiative. The project, which started informally in 2011, provides insur-ance of ̀ 15,000 on submission of an annual

premium of `300. In November 2013, the women registered under the non-profit, Saksham Mahila Samuday Kalyan Mandal (literally, community welfare fund of capable women), which lends money to its members to meet emergency expenses.

Goni Bai was entitled to the benefit as her ailing mother-in-law is an shg member. She got ̀ 5,000 the day her husband died and received the remaining amount in 10 days. She used the money to settle her debt and pay the medical expenses.

In the first two years, 86 insurance claims were settled under this project. Although the insurance can be availed by both husband and wife for a premium of ̀ 150 each, the initia-tive is aimed at empowering women. Thus, a widow can claim the money, but a widower

Death of a tribal woman in Madhya Pradesh prompts community to provide speedy insurance benefits to women during emergencies JITENDRA | panna

JITENDRA / CSE

56-57Good News.indd 56 20/02/15 3:37 PM

cannot. A married member can claim it for herself and her husband, but a man cannot claim insurance if his wife’s membership of the non-profit ceases at her death.

Quick funds, no hasslesWhat makes this initiative unique is the fact that beneficiaries can get emergency funds immediately, without any paper work, says Anil Namdeo, a state government official who facilitates micro-finance to shgs through the District Poverty Initiative Programme, a poverty-alleviation project of the state.

In the event of a death, usually of the bread-earner in the family, members of the non-profit are informed by word of mouth. One of them approaches the benefi-ciary and gives her ̀ 5,000 either on the same day or the next. The remaining amount is dis-bursed within 10-15 days after a district committee meeting of the non-profit. Chaired by 26 members, the committee holds a fortnightly meeting where they re-view the claims pending settlement. They

discuss when and how the remaining amount should be transferred to the beneficiary and also check whether the bene-ficiary has deposited the premium. In case of any anomaly, the beneficiary’s membership is cancelled.

The project has become more popular than the much-publicised Pradhan Mantri Jan Dhan Yojana. The Union government’s financial inclusion plan was launched in August last year with the purpose of connecting every rural family with the bank-ing sector. But many people, like Goni Bai, have not heard about it. She is also not famil-iar with the state government’s insurance scheme, Aam Aadmi Bima Yojana, for families below the poverty line, under which, the state claims, 8 million families have benefited so far. There is no data or study on the government’s performance. “I have not heard about any of the government insurance schemes. I only know about our community initiative,” Goni Bai says.

Outcome of a tragedyThe idea of community insurance evolved in 2011 after the death of Ramesh Bai. She had helped form more than 50 shgs in her village, Kherwa, and other neighbouring villages in Panna district. These include Sirsawaha, Dharampur, Gurha, Pali and Matlipeta villages. Her tips and training to women on micro-savings made her a popular shg volunteer in her community.

But her life was cut short at 40. Ramesh Bai was expecting her sixth child. There was no basic healthcare facility in her village or in the nearby panchayats. When she went into labour, she was taken to the Panna district hospital, where she was referred to a private hospital in Satana district, 80 kilometres away. The doctors declared her dead on arriv-al. “The hospital demanded ̀ 5,000 to give us her body, and that was all we had. Since we had no money left to arrange for a car, her body was stranded on the roadside,” says her husband, Malakha Gond.

The disgrace with which Ramesh Bai was treated outraged the women. “Her death was a big loss to the shg movement and it

humiliated all its members,” says S B Singh Baghel, project facilitator and team coordinator, National Rural Livelihood Mission.

The incident sparked a dis-cussion among the women in

shgs in Kherwa and neighbour-ing villages, who came together to help

each other financially in times of crisis. “We decided to keep aside some money out of our savings to help women in difficult times,” explains Maya Kumari, an shg member from Kherwa.

After consultations with insurance agents and local government officials, the women struck on the idea of a “risk management fund”. “An account was opened at Regional Rural Bank in Panna and the amount collect-ed from the initial premium was deposited,” Namdeo says. “In 2012, nearly 1,000 women across Panna came forward to be a part of the initiative. By October 2014, the number in-creased to 7,000,” says Rajkumari Yadav, pres-ident of the non-profit.

The initiative has struck a chord with the people. “I did not trust the project at first as I had once been cheated by a non-banking firm. But when I saw two families in my village getting the benefits, I asked my wife to join the initiative,” says Bhagwan Ram, a resident of Bhagoha village in Panna.

Helping with loan, too The women, however, feel the initiative has to be more organised in terms of documen-tation. “Our members are spread over 339 villages in Panna, but other districts also want to join. As the scope is expanding, there is need for more staff who can look after the renewal of the insurance policy and collec-tion of premium,” Yadav says.

Since last year, the non-profit has also lent money to a local farmers’ federation named Karnavati Agri-Producer Company Limited, a seed-making venture started in 2006. The amount to be lent is used from the premium and the interest charged is lower than that of the banks. While the fed-eration got a loan of ̀ 5 lakh, the non-profit has got ̀ 1 lakh as interest so far. “We settled six insurance claims with this money,” beams Yadav.

Women who are insured get `5,000 immediately and the remaining amount is handed over within 10-15 days

premium. In case of any anomaly, the beneficiary’s

The incident sparked a discussion among the women in

shgs in Kherwa and neighbour

M A D H YA P R A D E S H

U T TA R P R A D E S H

Panna


56-57Good News.indd 57 20/02/15 3:37 PM

BARACK OBAMA'S town hall speech at Siri Fort at the tail end of his India visit captured the country’s imagination and, very likely, touched its soul. That’s as it should be. Such a stirring “address

to the people of India” on the sensitive issue of religious tolerance is unusual from a visiting head of state. But there was another speech by the American president that did not get enough play in the media and that’s his address to the US-India Business Council summit a day earlier. It was not the kind to move hearts but it should certainly have worried our policy makers.

Here, Obama made no bones about what the US wanted from its partnership with India and how this was already paying off for his country. Since he outlined his vision of the economic partnership during his 2010 visit to India, bilateral trade has gone up some 60 per cent to nearly $100 billion a year. This was undeniably a win for the US and its workers because exports to India are up nearly 35 per cent and, as Obama exulted, those exports “support about 170,000 well-paying American jobs”. At the same time, Indian investment in the US had been growing, too. “And those Indian investments are supporting jobs across America. We’ve got high-tech

jobs in upstate New York, manufacturing jobs in North Carolina, engineering jobs in places like

Michigan and Ohio.” Bully for America. But

what of India which des-perately needs to create

12 million jobs for its ever increasing legions of young un-employed? As Prime Minister Modi responded with a platitudinous delivery at the high-level business meeting it was clear that the government still has no idea how to create the much-needed jobs for its huge workforce that swells by 10 million annually.

At the recent Aero India 2015 in Bengaluru, Modi came out with an idea—not a blueprint—that local defence production would be the heart of his Make in India programme. His logic was rather simple. Since India was the largest importer of defence equipment, a 20-25 per cent reduction in imports could directly add up to 120,000 highly skilled jobs. But it was more a flight of fancy since he knows as well as anyone else that such skills are thin on the ground in India’s poorly educated and largely untrained workforce. To believe that foreign companies in the high-tech defence sector could use India as part of their supply chain and an export hub is merely wishful thinking.

For investors to consider India as any kind of manufacturing base there needs to be a major overhaul of its infrastructure and ways of doing business. The fact is for all his rhetoric about turning India into a manufacturing powerhouse, Modi has been unable to impart any dynamism to the economy. The latest criticism came from a doyen of industry, Deepak Parekh, chairperson of hdfc Bank, who bluntly said that after nine months of the Modi government, very little had changed on the ground. If anything, ease of doing business had become a little more tough since it took more time for his bank to get approval to raise capital than in earlier years.

The bigger issue remains jobs. Modi must be well aware employment in the formal, organised sector is stagnating owing to higher automation. According to official data, 400,000 people lost their factory jobs in India during 2012-13—at a time when Obama was setting a record by having created 4.5 million jobs, a figure that seems a pie in the sky for us. Modi needs more than catchy slogans to give the young the jobs they desperately need.

L A S T W O R D

RIGHT TO DISSENT L ATHA JISHNU

We create jobsÐfor the US Modi government still has no clear strategy for creating employment for the hordes of the jobless young in India

TARIQUE AZIZ / CSE


58Last Word.indd 58 23/02/15 11:12 AM

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