The Govt is Trying to Make it Easier for Industries to Avoid Environmental Accountability

The Draft Environmental Impact Assessment Notification 2020 seeks to create a permanent setup to regularise industrial processes that have evaded environmental clearance.

Note: This article was first published on May 6, 2020 and was republished on August 11, 2020.

The Draft Environmental Impact Assessment Notification 2020 has inverted the logic of ‘precautionary principle’ which forms the bedrock of India’s environmental outlook.

It seeks to create a permanent setup to regularise industrial processes that have evaded environmental clearance and curtail public hearings for many industries.

Interestingly the term ‘precautionary principle’ has its origins in the German word vorsorgeprinzip. Another translation of this word is ‘foresight principle’. Simply put, it asks us to ‘look before we leap’.

If the current pandemic has taught us anything, it is this – we as a species lack foresight and severely so.

Planetary health scientists and virologists had long cautioned that the transmission of disease from wildlife to humans is “a hidden cost of human economic development.” They had predicted that pandemics would come and disrupt global health, security and economies because we are going into largely undisturbed places and inviting exposure to viruses we are unaccustomed to. Kate Jones, a disease ecologist rightly put it a few days back when she said, “We are creating habitats where viruses are transmitted more easily, and then we are surprised that we have new ones.”

Today, the whole world including the most influential economies have been rendered defunct, incapable of protecting the lives of millions. When talk of a ‘new normal’ is rife across the world, where knowledge of the intricate links between the natural world and human society should be at the foreground and the global lockdown has significantly reduced our impact on the environment giving us a window-of-opportunity to address climate change, India cannot walk back into the dark ages.

The new notification comes in the wake of recent attempts to dilute environmental safeguards and follows from a tradition to widen the escape route for violators or environmental regulations.

Only recently the state government of Goa was caught blatantly engaging in fraud. It submitted a false report to obtain clearance for an airport near the ecologically sensitive Mopa plateau endangering not only flora and fauna but also marauding the livelihood of hundreds of farmers. Even after this, neither the government officers nor the EIA consultants who gave false information to secure the clearance were reprimanded. Instead, the Expert Appraisal Committee (EAC) of the MOEF&CC revisited the project and issued a clearance.

Also read: Before Pathogens Become Pandemics, Bring Disease Ecology Into Public Health

Under such circumstances, granting ex-post-facto Environmental Clearance, or legitimising a let-mistakes-be-discovered approach, is dangerous. The Supreme Court, National Green Tribunal and the Madras high court have ruled against it in the past stating that it is “unsustainable-in-law”. India endorses the ‘polluter-pays-principle’, it cannot afford to endorse the “pollute-and-pay” sham.

Further, violators will be relied upon to self-report on violations! We have not forgotten how Sterlite hid its mining business and caused a social uproar, or, how Vedanta violated legal provisions to accrue benefits at the cost of the local tribal community. It is a mockery of the law and public trust to give a free hand to those who are only concerned with economic profits.

In an age which requires sincere efforts to protect the environment and public health, can we afford to let our vigilance take a backseat? Then why does the notification reduce the reporting requirements of project proponents to only once-a-year instead of the previous six-monthly reporting? This gives enough scope to hide or under-report the environmental and social consequences of a project.

Recently, a dyke at a Reliance power plant in Madhya Pradesh broke, spilling ashes over hundreds of acres of cropland, polluting the river and killing many individuals including children. This is the third time such an incident has occurred in a year.

A similar breach at an Essar power plant resulted in 500 farmers losing their crops yet the company alleged it was a “clear case of sabotage”. A government report later pulled up the company for “extreme carelessness by the management”, erecting a “substandard boundary” and “not clearing waste material from the boundary”. Such entities show no ecological and social responsibility and will thrive under the draft notification.

The notification is extremely dubious about trying to silence the voice of the people. Polluting industries like soda-ash, acids, petroleum and petrochemical products, dyes, biomedical waste, treatment plants, synthetics, paints, chemical fertilizers, pesticides and construction industries – all of which pose threats to human health – will be exempted from the public clearance process!

Also read: Explainer | The Controversy Surrounding Dibang Dam, India’s Largest Hydropower Project

The strong local voice against hydro-electric projects in the north-eastern states was heard in the mainstream despite the North East remaining but a minor blip in the consciousness of the country. For instance, the Idu-Mishmi community raised their voices in each public hearing against the Dibang dam. According to a press report, “almost 99% of the speakers at the public hearing on the Dibang project said that they opposed the project.”

So they were coerced by paramilitary forces followed by an incident where they were fired at and over the years the government’s sustained attack on protestors managed to subdue their morale. All for raising their voice legitimately. Planning to erect such a dam in a seismically active zone is a disastrous and irresponsible decision on the part of the government anyway. But now, hydro-electric power plants are proposed to be exempted from public hearings altogether!

The draft notification comes with several other precarious provisions like the designation of ecologically sensitive areas as per the MOEF&CC. It is well-known that the dry grasslands of Gujarat and Rajasthan are home to critically endangered fauna like the Great Indian Bustard and are used by nomadic pastoralists. Under the current notification, such sensitive ecosystems will be left free to be looted and plundered by the corporate sectors. Sacred groves and numerous patches of remnant forest lands like the Aarey forest, public protests around the degradation of which have made it to the headlines time and again and encouraged environmental activists, are all left out.

Further, the accessory or sequentially dependent components of a project do not fall within the ambit of vigilance. In addition, the study area for Category A projects (i.e, projects with the most harmful consequences) is within 10 km and for Category B projects (i.e., projects with a less severe impact) is within five km. The combined effect of these two provisions could be disastrous. For example, power plants often build their own rail networks to transport materials. Local people have often protested against the transportation of materials for coal mines which leaves a cancerous environment behind. The impact of a thermal power plant can extend way beyond 300 kilometres.

The provisions which allow levelling of land without needing clearance and the preparation of an EIA report with baseline data from only one season other than monsoon are an absolute no-no. Wetlands that provide a lifeline for civilisations are already serially massacred by illegal filling up or levelling. Further, it is absolutely critically necessary to include baseline data of monsoon months in an EIA report on wetlands. The consequences otherwise are disastrous because wetlands purify and store water and are climate regulators. Marginal communities depend on them for sustenance.

Also read: Environment Ministry’s Draft EIA Notification Pushes ‘Investment at Any Cost’

Furthermore, what is the hurry to bring out this notification in the midst of the pandemic? How can public consultation take place during a time of death and disruption?

The current drop in carbon emissions and pollution should be celebrated. After all, air pollution kills over seven million people globally. We need to maintain the new environmental baseline as a country committed to addressing the climate crisis.

Coronavirus has shown us the scale of the response needed to fight the climate crisis and address human sustenance in the post-COVID-19 world. Walking back instead of adapting is out of the question. We are a democracy. The natural resources of India are our lifeline.

Tiasa Adhya has been working on globally endangered wetland species for more than a decade. She also received the Nari Shakti Puroskar award (the highest civilian award for women in India) in recognition of her work.

Citing Anti-Terror Law, Delhi Police Block Global Youth Climate Activism Website 

While a media report said that the Delhi police had now retracted the notice, the website still appears to be blocked.

New Delhi: The Delhi police has blocked the website of a youth climate movement and described the contents of the website as “objectionable” and depicting an “unlawful or terrorist act”. 

The action comes after a complaint by Union environment minister Prakash Javadekar and the notice orders the “alleged” website to be blocked. The notice goes on to say that the contents of the website [https://www.fridaysforfuture.in] are “dangerous for the peace, tranquility and sovereignty of the (sic) India.” 

Fridays for Future India (FFI) is the India chapter of the global youth climate movement founded by Swedish teenage climate activist Greta Thunberg. Under the movement, school students across the globe skip classes on Friday and hold peaceful demonstrations to demand that world governments do more to curb greenhouse gas emissions in order to mitigate climate change. 

According to the Delhi police’s notice, Javadekar had complained about receiving “multiple emails with the subject name similar to “EIA 2020.”

‘EIA’ refers to the draft Environment Impact Assessment notification 2020, which is a new set of environment clearance rules that was introduced by Javadekar’s ministry in March 2020. The changes could drastically change the way environment clearances are given for infrastructure projects such as highways, ports, airports, dams, thermal power plants, etc. 

The EIA 2020 has been criticised heavily for not being aligned with the objective of environment protection – the objective of Javadekar’s ministry – and instead diluting the environmental protection norms that such projects required to be followed in the past before clearance was granted. 

The Fridays for Future India had launched an online campaign to collect several representations against the alleged dilution of the EIA norms. Under the campaign, a template was prepared which individuals could use to send their own representation against ‘dilution of EIA norms’ in an email to Javadekar.

Also read: The Govt is Trying to Make it Easier for Industries to Avoid Environmental Accountability

After “investigation” into the emails Javadekar received with subject “similar” to “EIA 2020”, the Delhi police found that “mainly” the Fridays for Future website was sending these emails. This, the Delhi police notice claims, could threaten “peace” and ‘sovereignty” of India. 

In the July 8 notice, The Delhi police has also alleged that the website contained “religious hatred content/material” and said that the contents of the website and its action attract the imposition of Section 18 (conspiracy or attempt to commit terror act) of the Unlawful Activities (Prevention) Act (UAPA). The notice also cites relevant provisions of the IT Act 2000 to direct internet service providers to block the website.

Section 18 of the UAPA reads: “Whoever conspires or attempts to commit, or advocates, abets, advises or incites or knowingly facilitates the commission of, a terrorist act or any act preparatory to the commission of a terrorist act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine.”

Notice retracted?

According to a Firstpost report on Thursday, however, Anyesh Roy, who signed the July 8 notice, said that issuing of the notice was “inadvertent” and charges under the draconian UAPA are not attracted. 

Also read: EIA Legitimised Environmental Destruction. Now, Govt ‘Renovates’ it for the Worst.

“Notice was issued under a section that was not appropriate to the matter. And it was immediately withdrawn. The moment the issue got resolved, the notice was also withdrawn. Presently, if the website is not running, it is not because of us.” Roy told Firstpost. 

The Wire tried to reach out to Roy, but our calls to the Delhi police official went unanswered. This story will be updated if and when a response is received.

Apar Gupta, who is advisor and legal counsel for Fridays for Future India, said that so far no communication about retraction has been received and the website remains blocked. 

In their legal representation to the Delhi police, however, Fridays for Future India said that a “basic scrutiny” would show that no emails were sent from their website but from private email addresses of concerned citizens of India.

“Furthermore, the content that was available on the FFF website was only suggested text, subject to any modification that the sender of the email might so desire to make,” it said.

Also read: Environment Ministry’s Draft EIA Notification Pushes ‘Investment at Any Cost’

A Class 12 school student from Delhi, who has been associated with the movement for a year, told The Wire that he could not understand what has happened.

“I still cannot believe it. We have been accused of terrorism? The government asked for suggestions from the people of the country. We as responsible citizens sent our suggestions. What did we do wrong?” he said.

Two other websites also blocked

In the last month, law enforcement authorities also have taken action against at least two other environmental groups, Let India Breathe (LIB) and There Is No Earth B. Along with FFI, both have campaigned against the controversial draft EIA notification 2020.

In its statement put out earlier this month, LIB said that it noticed on June 29 that its domain was rendered inaccessible.

“After technical determination and extensive correspondence with our domain registrar we reasonably determined this was due to a hold on domain of http://LetIndiaBreathe.in placed by the National Internet Exchange of India (NIXI),” the group said in a statement.

“Today, the domain http://LetIndiaBreathe.in remains inaccessible for reasons not disclosed to us. We have not been informed why this was done, nor have we been given a chance to present our defence.” its statement, dated July 13, added.

At the time, several media reports quoted the CEO of NIXI, which falls under the IT ministry, as saying the agency had blocked only the LIB website alone on government orders.

 “We only block a website after getting a government order,” NIXI CEO Sanjay Goel told one publication.

“We get orders from the Ministry of Electronics and Information Technology (MeitY), home ministry and others as well. Our business is to proliferate ‘.in’ websites, therefore more ‘.in’ websites only benefit us. We have very little discretion in such matters,” he said. 

(With inputs from Anuj Srivas)


Update (July 24, 10:37 PM): In a clarification sent to The Wire on Friday night, NIXI confirmed that it had put a domain hold on letindiabreathe.in as per orders from Law Enforcement Agency. The agency also noted that no action had been taken on the domain fridaysforfuture.in.

As the Delhi Police notice embedded to the beginning of the article noted, it appears to be a block carried out by ISPs. 

India’s Power NPA Puzzle, Both in Gujarat and Elsewhere, Is Unlikely to Be Resolved Soon

While the legal battle over private plants in Gujarat could take up to next April, for the broader industry, the more important cues are the next Supreme Court hearing and how the Section 7 battle plays out.

New Delhi: The Supreme Court may have allowed India’s central electricity regulator to consider reopening the power supply contracts of the loss-making generating stations of Tata, Adani and Essar in Gujarat, but it does not mean that the matter of compensatory tariff for these plants has been settled. Far from it.

Consumer forums can still continue their legal battle all the way up to the apex court to challenge grant of compensatory tariff for these plants, which would entail additional burden of Rs 1.29 lakh crore on consumers over a 30-year period.

“We make it clear that our judgment will not stand in the way of maintaining such applications. We also make it clear that each of the consumer groups, who had appeared before us and who have appeared before us today, will be heard on all objections that they may make to the proposed amendments to the power purchase agreements (PPAs), after which, it will be open to the Central Electricity Regulatory Commission (CERC) to decide the matter in accordance with law,” said Justice Rohinton Fali Nariman in his October 29 order while disposing of Gujarat government’s petition.

“Given the conclusions in the high power committee report, we are of the view that the CERC should decide this matter as expeditiously as possible, and definitely within a period of eight weeks from today,” the order added.

According to experts The Wire spoke to, it is clear from the SC order that options are open for consumer bodies to challenge grant of compensatory tariff for these plants in the CERC and the Appellate Tribunal for Electricity and finally in the SC.

That means the matter is unlikely to be settled anytime before general elections, which are due by April.

Banking sources said some of these plants have already missed loan repayment schedules. Loans to Essar’s plant have even turned non-performing asset (NPA), sources added.

Also read: If Gujarat Power Plants Bailout Is Approved, Consumers and Lenders Will Pick up the Tab

Now the question arises, how long can these plants can avoid being dragged to the bankruptcy court?

The Supreme Court is also currently hearing petitions from power producers challenging validity of the Reserve Bank of India’s (RBI) February 12 circular, which stipulates default even if there is just one day’s delay in payment of interest or principal.

All those who have defaulted on loans of over Rs 2,000 crore were given six months’ time to regularise their accounts or get ready to be dragged to the national company law tribunal (NCLT).

The deadline ended on August 27. Defaulters, however, have got a breather until November 14, which is when the next Supreme Court hearing is due.

If the apex court declines to further extend the stay on the RBI’s new guidelines for identification and resolution of defaulted loan accounts, lenders will have no option but to initiate insolvency proceedings against these plants immediately.

Tata power plant in Mundra. Credit: PTI

Lenders have argued for reopening existing PPAs to allow these plants to pass on increased fuel costs to consumers as they fear they could lose over Rs 30,000 crore that they have lent to these plants. For the recovery of loans, they have even agreed to take haircuts of Rs 17,000 crore.

But if the apex court declines to maintain stay on the RBI circular beyond November 14, lenders will have to drag these plants to the bankruptcy court. They cannot wait for a final resolution of the compensatory tariff dispute.

The apex court has transferred to itself all petitions filed by industry bodies in various high courts against the RBI’s circular.

These cases have been filed by Independent Power Producers Association of India, Association of Power Producers, Shipyards Association of India, Dharani Sugars and Chemicals Ltd and the South Indian Sugar Mills Association.

“Status quo, as of today, shall be maintained,” ordered the bench of Justices Nariman and Indu Malhotra while hearing the matter on September 11.

Section 7 wrinkle via Allahabad

Earlier, the Allahabad high court too declined to stay implementation of the RBI circular.

However, it threw in an extra wrinkle by asking the Centre to look at directing the RBI to dilute its guidelines for the power sector by invoking Section 7 of the RBI Act.

It has been reported that one of the letters that was sent to the RBI under Section 7 was to start consultations into reclassifying power NPAs although it’s unclear how this will proceed in the coming days and how it will reconcile with a potentially unfavourable apex court decision.

As many as 60 corporate loan defaulters and 34 power companies – including GMR Chhattisgarh, Ind-Barath Energy (Utkal), Lanco Anpara and Jindal India Thermal Power – and non-power sector players such as Bombay Rayon, Gitanjali Gems, Gayatri Projects, Patel Engineering, Gammon India, GTL Infrastructure, Punj Lloyd, Reliance Defence & Engineering, Bajaj Hindusthan, Pratibha Industries and McNally Bharat Engineering Co are on lenders’ hit list.

These companies together owe about Rs 3 lakh crore to banks and financial institutions. Of this, Rs 1.75 lakh crore is owed by stressed power projects.

The RBI circular has laid down strict timelines for banks to initiate insolvency proceedings. The loan account becomes NPA if payment gets delayed by 90 days. Following that, lenders have 180 days’ time to implement a resolution plan. Failing that, they must initiate insolvency proceedings for the recovery of loans.

A recent CRISIL ratings report noted that a “successful resolution” of NPAs worth Rs 1 lakh crore in coal-based power projects is possible with a 40-60% haircut.

Gujarat Government May Take Over Tata, Adani, Essar Power Plants

The three companies had earlier offered to sell a 51% stake in their plants for Re 1 to the Gujarat State Electricity Board.

The three companies had earlier offered to sell a 51% stake in their plants for Re 1 to the Gujarat State Electricity Board.

A technician repairs power supply lines at a power plant of Adani Power at Mundra Port in Gujarat April 2, 2014. REUTERS/Amit Dave/Files

A technician repairs power supply lines at a power plant of Adani Power at Mundra Port in Gujarat April 2, 2014. Credit: Reuters/Amit Dave/Files

Mumbai: The Gujarat government and lenders led by State Bank of India are working on a resolution plan for the electricity generation units of the Tatas, the Adanis, and the Essar group in Gujarat that are making huge losses due to an adverse Supreme Court judgment.

The judgment has prohibited coal-based plants from passing on their increased cost to customers.

This resolution plan, now in an advanced stage, comes in the backdrop of the lenders agreeing to invoke the strategic debt restructuring (SDR) plan for Essar Power. Under the plan, all its interest and principal payments have been frozen for the next 18 months.

The three companies had earlier offered to sell a 51% stake in their plants for Re 1 to the Gujarat State Electricity Board (GSEB), but with the assembly elections scheduled to take place in a few months, the government has deferred any decision till the end of the polls.

Once the elections were over, the GSEB would take 51% equity in the three units, industry sources said.

Tata Power, Adani Power and Essar Gujarat Power – with a combined capacity of more than 9,800 MW – were impacted by the Supreme Court judgment, under which the companies were denied permission to charge higher tariffs, the need for which arose because imported coal from Indonesia became more expensive.

Essar executives said on Tuesday the SDR was invoked by the Joint Lenders Forum of the banks in the last week of September and it had become effective from the end of July. Essar has debts of Rs 5,000 crore and Rs 2,600 crore of equity for its 1,200 MW plant.

“The company has decided to end the issue and not pump in more equity and approached lenders to take a majority stake,” said an Essar executive.

Essar would continue to operate the power plant and the account had not become a non-performing asset, the official said.

The company had to go for SDR because the selling price of electricity to the state boards was far lower than its cost price, and it was unable to service its dues.

After the lenders take control of the asset, they would invite bidders to buy their 51% stake in Essar unit. If the projects, including those of the Adanis and the Tatas, are bagged by a government entity, it would become easier for the three units to buy coal from local sources.

The companies are hoping that with this resolution in play, the value of their residual 49% stake in these subsidiaries would rise and it would be able to exit at a profit.

In a recent interview with this newspaper, A. M. Naik, chairman of L&T, said there were power projects of 20,000 MW that were up for sale in India with no takers.

In arrangement with Business Standard.