Setback to self-reliance in PVC production? Adani move to suspend Mundra project

By NS Venkataraman*
There are not many project promoters in India who can qualify to be capable of investing thousands of crore of rupees in large projects that could be globally competitive. Most of such large projects have been set up in the past by public sector organisations such as the Indian Oil Corporation.

More recently, several corporate houses -- Reliance, Adani, Vedanta, Birla, to name a few, have announced large sized projects in the private sector in India. However, recent negative campaigns have led to a piquant situation. A few of such projects, both in the private and public sector, have been halted, causing setback to India’s corporate world.
Sterlite Copper in Tuticorin in Tamil Nadu is one such project now remaining closed due to one such campaign against the project with regard to environmental issue. As a result, India, which was a net exporter of copper when Sterlite Copper was operating, has now become a net importer of copper, resulting in huge outflow of foreign exchange.
Sterlite Copper is remaining closed for over three years now. But, there is no change for better in the soil or atmospheric conditions in Tuticorin after the closure. Obviously, this proves that Sterlite has not caused any environmental issue.

PVC project

India is now a large importer of polyvinyl chloride (PVC resin), as demand for PVC is steadily increasing and domestic production could not be stepped up. Main constraint for India in increasing the production of PVC is lack of adequate production of feedstock ethylene by the petrochemical route.
Indian present production of PVC is around 1.5 million tonne per annum. Indian present import of PVC is around 1.73 million tonne per annum. In such scenario, the Adani group came forward to implement large-scale coal based PVC project in Gujarat.
The group's flagship Adani Enterprises Ltd (AEL) had in 2021 incorporated a wholly-owned subsidiary, Mundra Petrochem Ltd., for setting up a greenfield coal-to-poly-vinyl-chloride (PVC) plant at Adani Ports and Special Economic Zone (APSEZ) land in Kutch district of Gujarat.
The unit was to have a PVC production capacity of 2,000 kilo tonne per annum requiring 3.1 million tonne per annum of coal that was to be imported from Australia, Russia and other countries.
The Adani Group has now announced that it has suspended work on a Rs 34,900 crore PVC project at Mundra in Gujarat, as it focuses on resources to consolidate operations and address investor concerns following a damning report by a US-based short seller.
Though the Adani Group has said that they are still committed to the PVC project, one has to keep fingers crossed about the fate of this large-scale and much needed PVC project.

Case study

It all began with a US-based short seller, Hindenburg Research, brought out an adverse report on Adani group which sent shock waves amongst the investors. The authorities in India and their corporate supporters insist, however, it is becoming increasingly clear after detailed investigation by various agencies that the Adani Group has been sinned against rather than sinning.
They also claim, the balance sheet of each of independent portfolio companies of the Adani Group is reasonably strong. The Adani Group says that it has proven project development and execution capabilities, strong corporate governance, secure assets, strong cash flows.
The suspended PVC project proposal of Adani group is a case study as to how strong are financial research organisations, who allegedly focus more on hate campaign with very little understanding of the holistic scenario.
This scenario is causing apprehension amongst many corporate project promoters in India, who fear that any such campaign managing to get media publicity can halt a project, with the corporate sector paying big price.
---
*Trustee, Nandini Voice For The Deprived, Chennai

Comments

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat* Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu. He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Budget for 2018-19: Ahmedabad authorities "regularly" under-spend allocation

By Mahender Jethmalani* The Ahmedabad Municipal Corporation’s (AMC's) General Body (Municipal Board) recently passed the AMC’s annual budget estimates of Rs 6,990 crore for 2018-19. AMC’s revenue expenditure for the next financial year is Rs 3,500 crore and development budget (capital budget) is Rs 3,490 crore.

Licy Bharucha’s pilgrimage into the lives of India’s freedom fighters

By Moin Qazi* Book Review: “Oral History of Indian Freedom Movement”, by Dr Licy Bharucha; Pp240; Rs 300; Published by National Museum of Indian Freedom Movement The Congress has won political freedom, but it has yet to win economic freedom, social and moral freedom. These freedoms are harder than the political, if only because they are constructive, less exciting and not spectacular. — Mahatma Gandhi The opening quote of the book by Mahatma Gandhi sums up the true objective of India’s freedom struggle. It also in essence speaks for the multitudes of brave and courageous individuals who aspired to get themselves jailed for the cause of the country’s freedom. A jail term was a strong testimony and credential of patriotism for them. The book has been written by Dr Licy Bharucha, an academically trained political scientist and a scholar of peace studies and Gandhian studies, who was closely associated throughout her life with those who made the struggle for India’s independence the primar...

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

'A most unlikely Gandhi fan': Ex-Hamas chief who addressed online meeting in Kerala

By Sandeep Pandey* There was much hullabaloo about former Hamas chief Khaled Meshal addressing an online meeting in Kerala during the ongoing Israeli war on Palestine provoked by a Hamas attack on Israel on 7 October, 2023. Hamas is described as a terrorist organization by Israel as well as United States even though it came to power in Gaza through elections. US-Israel refuse to have any dealing with it, instead preferring the relatively moderate Fatah which rules West Bank under the leadership of Mahmoud Abbas.

UP tribal woman human rights defender Sokalo released on bail

By A Representative After almost five months in jail, Adivasi human rights defender and forest worker Sokalo Gond has been finally released on bail.Despite being granted bail on October 4, technical and procedural issues kept Sokalo behind bars until November 1. The Citizens for Justice and Peace (CJP) and the All India Union of Forest Working People (AIUFWP), which are backing Sokalo, called it a "major victory." Sokalo's release follows the earlier releases of Kismatiya and Sukhdev Gond in September. "All three forest workers and human rights defenders were illegally incarcerated under false charges, in what is the State's way of punishing those who are active in their fight for the proper implementation of the Forest Rights Act (2006)", said a CJP statement.

"False" charges may be levelled against Adivasi-Dalit rights leader: Top Dublin-based NGO

Counterview Desk Front Line Defenders (FLD), a Dublin (Ireland)-based UN award winning advocacy group , which works with the specific aim of "protecting" human rights defenders at risk, people who work, non-violently, for the rights enshrined in the Universal Declaration of Human Rights, has expressed the apprehension that cops may bring in "false charges" against Degree Prasad Chouhan, convenor, Adivasi Dalit Majdoor Kisan Sangharsh, which operates from Chhattisgarh.

Search This Blog