Skip to main content

Tata Mundra financier ADB's compliance body finds "major lapses" while identifying adverse impact on environment

Area surrounding Tata Mundra plant
By Our Representative
The Compliance Review Panel of Asian Development Bank (ADB) has come down heavily upon top international banks ADB for committing "major violations" in financing the 4000 MW Coastal Gujarat Power Ltd (Tata Mundra), in Gujarat. This is the second major financial institution for making harsh criticism of its lending to Tata Mundra.
Earlier, the Compliance Advisor Ombudsman (CAO) of World Bank’s International Finance Corporation (IFC), had found serious violations resulting in harm to the people and environment.
The ADB's Compliance Review Panel has noticed that top bankers have failed to "adequately disclose" information about the project and the potential harm it may do to the local people. It has said that there was absence of "timely public consultation" with all stakeholders, "erroneous" Social and Environment Impact Assessment (SEIA) resulting in "failure to identify" potential impacts.
It added, there was "absence" of baseline data and monitoring systems, and "failure "in adhering to the ADB policies on "discharge of water to the sea at a higher temperature resulting in heavy loss to livelihood to fisherfolk. The Report was made public on April 7.
The compliance report further says that these policy violations are manifested on the ground, as there was a heavy drop in the fish catch due to discharge of water to the sea at a higher temperature, resulting in serious livelihood issues among the fishing community; inadequate compensation for the fisherfolk, since they were not counted in the SEIA; and increasing respiratory illnesses among the children and the old.
The non-existent communities affected by Tata Mundra
Reacting to the development, Bharat Patel, General Secretary of Machimar Adhikaar Sangharsh Sanghathan (MASS), which is in the forefront of the struggle against Tata Mundra, said the compliance report chose "not to look into the impacts of the inlet channel of the project, citing that it is shared with the adjacent Adani power project, nor did it look adequately the impacts of coal dust and fly ash pollution on dry fish put in the open, or acknowledge the impacts on horticulture, blaming on the multiplicity of factors”.
Yet, according to Patel, “This is a major victory for the people’s struggle against Tata Mundra and other destructive power projects in Kutch”. MASS is one the complainants to the ADB's compliance body. 
“Since two of the world's largest development banks have come under fire from their own accountability mechanisms for gross violations on the ground, it has only strenghtened our resolve to intensify our voices and struggle for justice and fight this dirty energy,” he added.
"In October 2013 CAO released its findings cited several of the violations for IFC policies", Patel said, adding, "These included violations of environmental and social risks and impacts of the project; lack of social baseline data; refusal to apply land acquisition rules despite physical and economic displacement; inadequate attention to the requirement of biodiversity conservation; failure to review and supervise the impacts on airshed and marine environment; and failure to examine the cumulative impact of projects around Tata Mundra." 
A year long monitoring by the CAO said in January 2014 that "no action was taken by the IFC or the company to address its findings."
Women sorting the catch
“The project is up and running and people, our crops and cattle are suffering from its impacts. ADB finding violations about non-compliance but has refusal to take any action will be a joke on the people. The violator should be taken to task and suspend all work till the issues are adequately settled”, Gajendrasinh Bhimaji, one of the complainants, said.
“No other project in the country has received such serious flak from its financiers as Tata Mundra in recent times. Not taking any meaningful action on the findings will erode people’s faith in institutions like World Bank and ADB further, and will be left with no choice but the challenge them at all fora”, Madhuresh Kumar, national convenor of the National Alliance of People’s Movements (NAPM) said.
"This audit report by reconfirms the earlier CAO findings that both the ADB (and other financiers) and Tata Mundra had faltered on anticipating multiple impacts on communities and planning right measures to mitigate these. It is high time ADB, IFC and Tata Power sincerely engage in serious damage repair mechanism in consultation with the affected communities", said Soumya Dutta, an energy expert.
Souparna Lahiri of NGO Forum on ADB, a watchdog of ADB said, “We welcome the findings. We hope the findings will not remain on paper and the management will translate it into bold actions, sending a strong message to their clients”.

Comments

TRENDING

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative  The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani*  India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor*  Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas*  November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.  

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah  The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad*  On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya. 

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad*  The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor*  Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor*  Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.