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dam-l LS: Siemens Response to Maheshwar Declaration

SIEMENS                 Power Generation (KWU)

July 17, 1998




Re: Your Letter to Dr. Heinrich von Pierer of June 12, 1998, concerning the
Maheshwar Hydro Power Plant Project


Dear Mr. McCully,

As you surely know, the economic and social development of India urgently
requires expansion of the country's power supply. India still has a major
potential for the expansion of hydro power which is the most important CO2
-free energy source for power supply.

You will certainly agree as well that each hydro power plant project must
be evaluated separately, with its advantages and disadvantages given due
consideration. The decision on the implementation of such a project and
thus the appraisal of the economic, ecological and social advantages and
disadvantages are alone the responsibility of the competent state
institutions. We however convince ourselves of the plausibility of the pros
and cons. We also did this in this case.

The Maheshwar hydro power plant can reduce the country's major peak load
deficit which is hindering economic and social development in Madhya
Pradesh. The power plant will therefore make a contribution toward faster
development of the region. As a run-of-river power plant with a capacity of
400 megawatts it only occupies a decidedly small area of about six square
kilometers. Part of the area is anyway regularly flooded during the monsoon
season. Around 2200 families are to be resettled on the basis of fair and
justified criteria, e.g. the new living accommodation is to be provided in
the immediate vicinity.

Given these facts and given the possibility for Narmada Bachao Andolan to
take part in the Task Force Madhya Pradesh established early this year to
ensure that project work and resettlement are done properly we see no
reason to doubt the decision taken.

Siemens is in charge of supplying the electrical equipment for the
Maheshwar hydro power plant, including turbines, generators and I&C
equipment. We are convinced that our participation in this project serves
the interest of the people of Madhya Pradesh.

Siemens has always been in favour of dialogue, and therefore our company
has decided to take part in the work of the World Commission on Dams.

Yours Sincerely,


Mark Derbacher
Press Officer
Siemens Power Generation Group



==============================================
        Susanne Wong
        International Rivers Network
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