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DAM-L LS: WCD India Country Study Exposes Failure of Large Dams (fwd)



S  A  N  D  R  P
South Asian Network on Dams Rivers and People
AD/ 53 B, Shalimar Bagh, Delhi 110 052 Ph. 011 - 7484654,  7484654
Email: cwaterp@vsnl.com

PRESS RELEASE
September 20, 2000
_______________________________________
India Country Study for World Commission on Dams
Exposes India's Poor Track Record on Large Dams
________________________________________

"The marginal contribution of large dams to increased foodgrains 
production [in India] is less than 10%". This startling fact was 
among many other findings of the India Country Study (ICS) on large 
dams conducted by a consultant team of five prominent Indian experts. 
The study conducted for the multi-stakeholder World Commission on 
Dams (WCD) exposes the poor track record of large dams in India on 
all accounts - social, economic, environmental and financial as well 
as the availability of better non-large dams options.

Not only is there insufficient internalising of social and 
environmental costs in project design, the report found that "Costs 
are systematically underestimated and benefits exaggerated so that 
requisite B-C [benefit-cost] ratio is shown to have been arrived at. 
Further, during actual implementation, there are enormous escalation 
in costs, considerable delays and changes in design and scope of 
projects. Benefits, on the other hand, fall well below anticipated 
figures as actual irrigated area and achieved yields fall below 
projected levels". Thus the report concludes that the Major and 
Medium Irrigation Projects built in India are unviable. On hydropower 
dams, the report concludes, "Given the high capital cost, long 
gestation period and the environmental and social costs, hydro power 
development is not the preferred option for power generation compared 
to other sources".

The report consistently highlighted the absence in India of the 
political will, legal framework and planning infrastructure to 
mitigate and redress the substantial negative effects that large dams 
have on the environment and society. "Apart from not acknowledging 
the social and environmental costs, most of the dams were also not 
required to internalize the costs of preventing, minimizing and 
mitigating most of the adverse impacts", which have been very 
significant. On options, the report concludes, "If we also look (as 
we must) at the costs and benefits of other, alternative, methods for 
achieving the objectives set out for large dams, then some of these 
alternatives might turn out to be better options then large dams".

The findings of the study are expected to have a significant impact 
on India's large dam policy especially because it is part of the 
WCD's knowledge base. It will be incorporated into the final report 
of the WCD, a body endorsed by various stakeholders ranging from the 
NBA and Government of India to representatives of the industry and 
leading international agencies including the World Bank and IUCN. The 
WCD's final report is due to be released to the public in London by 
Nelson Mandela on November 16, 2000.

Citing other studies where estimates of human displacement due to 
large dams range in India between 30 million and 40 million, the 
report suggests that these figures ring true especially in light of 
the study's own estimates that place the figures at a monumental 56 
million. Even by the most conservative estimates based on Central 
Water Commission (a Govt. of India body) figures, large dams have 
submerged over 5 million ha of forests, affecting the tribals and 
other poor sections of society depending on forests.

Vindicating the stance of critics of large dams in India and outside 
that large dams cater to well-to-do classes at the cost of the poor 
and marginalised communities, the report finds, "Together, nearly 62% 
of the population displaced were tribals and members of the scheduled 
castes. Considering their population nationally is only a little over 
24.5%, clearly their representation among those displaced was 
disproportionately high. For tribals, this was particularly 
significant as their proportion in the national population is only a 
little over eight percent, while their proportion among the displaced 
was over 47%".

Not only that, even the electricity and irrigation benefits of large 
hydro projects routinely bypass the dam affected and other poor 
communities and are disproportionately consumed by landed farmers and 
urban electricity consumers or well to do families in rural areas. 
Thus, on distribution aspects of large dams, the conclusion of the 
study is even more shocking, "Also, the distribution of most of the 
costs and benefits of large dams seems to accentuate socio-economic 
inequities. This seems primarily due to a lack of policy direction 
regarding the equity aspects of projects".

Ramaswamy Iyer, former Secretary, Ministry of Water Resources, Govt. 
of India, who authored the section on "the framework of laws, 
policies, institutions and procedures", eloquently demolishes 
oft-repeated arguments by large dam proponents. Iyer identifies the 
systematic malaise that has led to large scale misery due to large 
dams. He concludes "that some people should be willing to make 
sacrifices for national economic 'progress'... is clearly an 
unacceptable proposition from the point of view of social justice and 
it goes against the Project Affected Persons' right to life and right 
to equality before the law". Iyer points out that the Indian 
framework contains "no effective mechanism for ensuring compliance 
with conditions (where conditions are set) and taking appropriate 
measures in event of non-compliance".

While underlining that large dam planning process in India is done in 
the absence of a comprehensive water policy that explores 
alternatives, the report outlines recommendations for better 
management of water resources. These include:
1.	Before taking up any project, needs assessment for the given 
area must be done, the needs should be prioritised and then options 
assessment should be done to find the optimum way of satisfying the 
needs. The available options must be assessed in terms of being least 
cost (all kinds of costs), viability including from the social and 
environmental point of view.
2.	It is likely that demand side management and more efficient 
use of available systems would be the preferred options.
3.	There should be a national rehabilitation policy based on 
land for land principle. The policy must have a legal backing. Most 
significantly, the report has recommended that those displaced till 
now must be properly rehabilitated and compensated BEFORE any further 
displacement is affected.
4.	Strengthening the institutional framework to ensure 
implementation of social and environmental safeguards;
5.	Independent monitoring of compliance and transparency;
6.	Increased irrigation efficiency and crop yields, better use 
of available irrigation systems;
7.	Soil moisture conservation techniques, Local rain water 
harvesting, small hydro and other non conventional energy 
technologies and watershed development would reduce the need of 
future dams;
8.	"Problems of drainage, waterlogging, salinity, and recurring 
losses against operation and maintenance costs may even require 
abandoning or decommissioning of some existing dams";
9.	Demand-side conservation and increased energy efficiency;
10.	Improved capacity utilisation and distribution loss reduction.

Over Rs. 1567.76 billion (at constant 1996-7 price level), that is 
over 2/3rd of the water resources budget of the nation has been spent 
on large projects in fifty years by March 1997. As the report notes, 
there has been no attempt to really evaluate what has been the 
performance of large dams. As another year of drought faces the 
nation, we demand that a truly independent, credible national 
commission be set up to review the costs, benefits and (intended & 
unintended) impacts of large dams, including who has paid the costs 
and who has benefited. Pending the report of such a commission, it 
would only be logical that no more large dams be started, work on 
ongoing large dams be stopped and the water resources and hydropower 
budget be spent on available alternatives. And as ICS notes, there is 
no dearth of such alternatives.

Himanshu Thakkar
South Asian Network on Dams Rivers and People (SANDRP)
Delhi
cwaterp@vsnl.com

(For the full WCD India Country Study, visit the WCD web site www.dams.org
or write to cwaterp@vsnl.com)

SANDRP is an independent research and networking organization based in Delhi.