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इस सेक्टर में निजी क्षत्रे को आकर्षित करने के लिए सरकार ने 2016 में इस पर चर्चा शुरू की कि नवीकरणीय ऊर्जा के क्षत्रे को और विस्तृत किया जाए ताकि 25 मेगावाट क्षमता से अधिक के जलविद्युत स्टेशन भी उसमें शामिल किए जा सके। इससे सरकार को 2022 तक 175 मेगावाट नवीकरणीय ऊर्जा उत्पादित करने के लक्ष्य को हासिल करने में मदद मिलेगी।
It is noteworthy that currently, coal-based power projects are under threat due to lack of coal linkages and power purchase agreements, thus stalling many existing power projects and discouraging many companies from expanding to new coal power projects. This would give a boost to hydropower projects in many regions, especially in the Himalayan regions.
Ulka Mahajan on the Context of the Role of IFIs in the Development Agenda
By Joe Athialy
Ever since the first lending from World Bank in 1949 worth $34 million to Indian Railways and the bilateral credit India received from the erstwhile USSR and USA in the early 50s, India has been a recipient of significant funds from different multilateral and bilateral sources.
While each of these lendings came with baggage, and often conditionalities, much of it was justified in the name of nation-building, and critiques of the enormous social, environmental and even economic costs were shut their mouth by the oft-repeated rhetoric of ‘somebody has to sacrifice for greater common good’. This was true not just for lending from international sources, but any investments.
What the Multilateral Development Banks (MDBs) brought, along with its lending, was a host of policy changes in almost all critical sectors. They often influenced and changed the course of development agenda of the country, by providing ‘Technical Assistance’ to governments, being the knowledge provider and taking the role of a development finance gatekeeper with their Doing Business Reports, Investment Climate Reports and many such.
With India opening up her economy in 1991, India has been a destination of many foreign corporations and by late 90s, with all systems in place for their smooth landing, they started pouring, starting with companies like Enron and Cogentrix. With the foreign corporations, came in financial institutions, both private banks as well as Export-Import Banks (ExIm Banks). Some of the institutions operating here in the past have deepened their operations. What was witnessing the past decade or so is an influx of these investments majorly in energy, transport, steel, dams, roads, urban projects, industrial zones/corridors, smart cities and other mega projects. The number of financial sources coming in, the pace in which these investments are finalised and the quantum of money pouring in is alarming and often do not give the opportunity to see the investments in toto.
There have been many struggles – small and big – against these investments and the devastation, which caused to the people – their livelihood and natural resources, and the environment. While the yardstick of measuring the successes and failures of these struggles could vary depending on who does it, the reality remains that the struggles have forced MDBs to relook the way they conduct business in this country, compelled them to adopt safeguard policies and compliance mechanisms and didn’t shy away from confronting them on the ground, on the streets and even at their doorsteps.
The Indian government, for past few decades, has stressed the need for large infrastructural projects for the country’s development and these projects are being seen as a stimulus to the growth of India’s GDP. This aggressive growth comes at the cost of displacing the lives of people who are dependent on land and natural resources for their livelihood and devastating the environment. This also often comes at the expense of displacing existing dwelling communities who are pushed to a life of poverty and whose life and livelihood cannot be commensurably compensated by money – in most cases, not even that.
This document is an effort to compile data of investments coming into India from MDBs, ExIm banks and other bilateral investments, to help understand the landscape of financing from these institutions and helping to understand the overlaps of international financial institutions in certain key sectors.
The data provided in this document is not comprehensive. While information from MDBs is comparatively easy to access, that of ExIms and bi-lateral sources are difficult to compile. Despite our best efforts, there are many we missed. We will keep this as a work in progress and will update the data as and when we get it.
We hope that this data and the broader understanding this document may help provide will strengthen the struggles on the ground as well as critical voices demanding transparency and accountability in financial institutions.
Gujarat groups protest the exclusion of urban poor and civil society groups from AIIB lead up the seminar on urban development in Ahmedabad
April 18, 2018
- Gujarat groups protest the exclusion of urban poor and civil society groups from AIIB lead up the seminar on urban development in Ahmedabad.
- Social Movements to hold a parallel conference in Mumbai along with Asian Infrastructure Bank 3rdAnnual Governors Meeting.
- Demands reorienting of visions from existing Multilateral development Banks towards a people-centric development orientation.
Gujarat groups protest the exclusion of civil society groups in the state and country for the lead-up event for AIIB 3rd AGM on urban development in Ahmedabad. The exclusion of urban poor groups and civil society shows a trend of opacity, non-transparency and indifference to the concerns of various sections of society which inhabit a city.
Asian Infrastructure Investment Bank (AIIB) the newest of the Multilateral Development Banks Headquartered in Beijing will hold its second Annual Governors Meeting in Mumbai on 25th and 26th of June in Mumbai. India is hosting a number of host country seminars across the country of which the seminar on urban development is being organised in Ahmedabad on 19th and 20th of April. The organisers of the conference have not extended invitations to civil society organisations / social movements who are actively working for equitable, inclusive and sustainable cities.
The issue of urban development is not about creating investment opportunities for corporates but about securing the rights and livelihoods of people who are living in those cities whose voices are not being considered in the planning of cities development. A large number of questions are being raised by various groups across the country regarding massive investments which at one hand will create huge public debt and on the other hand, does not ease living for the masses living in those cities and to the contrary, displace, disposes and derecognise their genuine voices.
A large number of questions have been raised with regards to AIIB as to their perspective on urban development and to the rights of the people who inhabit them. The support to Amravati state capital by AIIB without considering the effects of such massive development project on the environment and livelihoods of the people and without addressing their problems is a case in the point. AIIB could not put together a comprehensive complaints mechanism of its own and policies that will guide their investments and have started funding projects.
About 61 groups across the world including a large number from India have in a statement expressed their concerns about shifting the decision making power to approve projects to that of the Bank Management instead of the Executive Board who are accountable to constituent Governments. Concerns have also been raised regarding AIIB’s proposed investment into National Investment and Infrastructure Fund, which will further reduce the transparency of how this money will be spent in high risk investments without taking proper accountability. We also urge AIIB to halt all investments until all environmental, social and transparency policies are approved through a thorough process of consultation including CSO’s and affected communities.
AIIB being a south led multi lateral development bank should have its ears and eyes close to the ground feeling the pain of displacement and dispossession rather than funding projects that goes against their own said mandate of clean, lean and green. The peoples movements will keep a close eye on AIIBs priorities, policies and investments in the country and how they respond to peoples voices.
Groups across the country will also assemble in Mumbai from 21-23rd, demanding accountability and to reiterate their vision of an equitable society differing from the versions of international financial institutions which opens the planet and people for further destruction.
Finance driven unequitable and unsustainable projects have posed in many problems to the Society and the Government, State of Gujarat is no exception to this. The struggles and resistance movements in various parts of Gujarat are living examples of Non-democratic and consultant driven Urban Development, which has only led to ad-hocism and replaced proper planning processes.
- Mandal-Becharaji SIR./ Dholera SIR.
- Vadodara – Mumbai Expressway.
- Challenge to Urban plans in cities like Surat, Navsari, Bardoli, Morbi.
- Mumbai – Ahmedabad Bullet Train.
- Ahmedabad Metro.
- Ultra Mega Power Plant in Mundra (Tata & Adani).
The Government response to attract the International Finance has been one of undermining all the democratic process, twisting the policies and laws to suit the Financers (Ease of Doing Business) and Amendments to several important laws with far reaching negative consequences on the Public.
- Gujarat Amendment to the RFCTLARR, 2013.
- SIR Act 2009.
- Amendments through Rules in PESA Act.
- District and Metropolitan Planning Committees, under the 74th Constitutional Amendment (Article 243 ZD and 243 ZE)
- Amendments to the Panchayat Act 1993.
- Amendments to Tenancy Act and ULC Act.
Under such circumstances, lack of clear policies regard to Water and Land Use have only led to aggravating the Woes of Public and increasing incidences of sporadic and organised resistances to various projects both Government and Private.
Undermining the Constitutional Provisions and Principles for the sake of attracting finance and corporates to promote the kind ‘Development’ which more than for Public Utility is pushed for Private profits, the Government has increasingly depended on the model of PPP. Which according to us is – ‘Projects for Private Profits’. The major portion of PPPs is financed through Debt and the Banking NPA crisis red flags the perils of depending more on such models.
What is required is people driven planning. Which will be equitable, sustainable and least resisted since the participation of public would be ensured at every stage from planning to implementation.
Krishnakant, Paryavaran Suraksha Samiti
Sagar Rabari, Khedut Samaj Gujarat
Ashok Shrimali, Mines, Minerals and People
Zuber Sheikh, SAATH
The Asian Development Bank was conceived in the early 1960s as a financial institution that would foster economic growth and cooperation in Asia. India was a founding member of the Asian Development Bank (ADB) and is now the fourth-largest shareholder. ADB commenced operations in India in 1986 and has approved 240 loans totalling $36.8 billion.
Asian Development Bank (ADB) has grown to be the third largest source of development finance in the Asia-Pacific region, next to the World Bank Group and the Japanese Government. Documents published in 2017 reveals that from a lending portfolio of just over $3 billion during the first decade, ADB has expanded its lending to $123 billion during the last 10 years.
However, the Mid-term Review (MTR) of ADB’s strategy for 2015 and 2020 have acknowledged that the Asia-Pacific region faces widening inequalities in income and access to economic and social opportunities. Increased investment in infrastructure has failed to provide inclusive growth and social protection to the vulnerable sections of the populations including the workers and women.
India had about 84 ongoing sovereign loans from ADB amounting to $11.9 billion at the end of 2015. Currently, we have about 170 active projects in the country of ADB alone. The massive Vizag-Chennai corridor, the numerous urban development projects across the country, the ReNew clean energy projects in Andhra Pradesh, Gujarat, Jharkhand, Madhya Pradesh, Telangana and Karnataka, are only a few of the 50 odd active and approved projects. Further 23 projects have been proposed to the ADB waiting for approval. These are just projects covered by ADB, adding them to the projects funded by all IFIs shows the extent of their influence in almost every sector – energy, infrastructure, health, etc. The scale of land grab, loss of livelihood, environmental destruction has been completely overlooked by both the IFIs and the government. The rampant privatisation of all the sectors, including health care, is going to affect all those who would not be able to afford health care. In such a time, holding the development banks accountable has become imperative for one’s survival with some modicum of dignity.
ADB Investments in India. Source: Answer by the government to the parliament of India
ADB 50 campaign in India
The first week of May 2017 was marked by actions across the country against ADB and other IFIs. It coincided with ADB’s 50 years celebrations in Manila. The massive protest actions were intended to send a strong message to the ADB and other IFIs of the havoc their investments have caused. Thousands of people, in over 140 locations spread in over 21 states in India and over 80 organisations, came together to make this campaign a massive success. These protest actions are both a reminder of the reckless lending of ADB and hope to continue the struggle against the IFIs and their inequitable development model.
The coming together of so many organisations resulted in a wide range of programmes, including the public meeting, lectures, demonstrations, and human chains. Activists also made short video clips highlighting the impacts of the investments by IFIs. The protests actions raised concerns about investments of IFIs like World Bank; International Finance Corporation; Japan Bank of International Corporation (JBIC); Asia Infrastructure Investment Bank; New Development Bank; Exim Banks of Korea, United States, China among others. Many of these agencies are co-financiers, with increasing investments in the infrastructure and cross border projects, thus causing irreversible damage to the people and environment, while their policies to safeguard the harm caused by their investments are made opaque and watered down.
The actions mentioned above on the occasion of 50 years of ADB are a part of the continuous struggle of the people from all the regions that have been affected by the projects.
By Maju Varghese
The Constitution of India has accorded the Parliament the supremacy among the three organs of the Union government viz legislature, executive, and judiciary. Parliament not only makes the laws but also enables the citizens to participate in controlling the government. The Parliament applies various oversight mechanisms to ensure transparency and accountability in the system. The two mechanisms available in our country are questions and debates on the floor of the house and various committees which scrutinise the public finances and policies.
The budget session of the Parliament was held between January 31 and April 12, 2017. The session had a recess between Feb 10 and March 8, 2017, during which the standing committees examined the demand for grants from various ministries. The session was convened in the context of upcoming assembly elections and also of post demonetisation distress.
This session was important for many reasons. The budget was introduced on February 1 instead of the last working day of February as per the tradition. The government claims that advancing the presentation will result in necessary legislative approval for annual spending plans and tax proposals could be completed before the beginning of the new financial year. According to eminent economist Arun Kumar, early presentation of Budget will help the entire exercise to get over by 31 March, and expenditure, as well as tax proposals, can come into effect right from the beginning of new fiscal, thereby ensuring better implementation.
Besides advancing the date, the government decided from this year to merge Union Budget and Railway Budget. Earlier, Railway budget was presented first followed by the general union budget. Another interesting development this year is doing away with the distinction of the plan and non-planned expenditure in the budget-making monitoring difficult on capital infusion in developmental planning.
The budget session held 29 sittings for 178 hours in total in which 24 bills were introduced, and 23 bills were passed. Members raise 560 starred questions and 6440 un-starred questions during this session.
Some Major debates in the Parliament
The budget session saw the introduction of some major bills and discussions around those. These are: The Finance Bill, 2017; The Specified Bank Notes (Cessation of Liabilities) Bill, 2017; Bills related to Goods and Service Tax; The Payment of Wages (Amendment) Bill, 2017; the Maternity Benefit (Amendment) Bill, 2017; the Mental Health Care Bill, 2017; and the Employee’s Compensation (Amendment) Bill, 2017.
Analysis of Questions in Parliament
During the budget session, about 6440 un-starred questions and 560 starred questions were admitted in the parliament. However, the lack of interest in the functioning of the IFIs was evident as just 7 questions asked on the topic in Lok Sabha out of 5203 questions, and 7 in the Rajya Sabha from the total 5064 questions. The break-ups of the questions are given below.
|IFI Name||Lok Sabha||Rajya Sabha|
Rising NPA’s and Parliament
The debate on Non-Performing Assets continued to be debated in the parliament with many parliamentarians raising the issue through questions. There were about 18 questions asked in the Rajya Sabha and 21 questions in Lok Sabha. K.V Thomas, then chairman of the standing committee on public accounts, said that the current non-performing assets stood at 6.8 lakh crore or 6.8 trillion of which 70% are those of big corporate houses. There were debates on the bad bank and how the banks could be cleared of the mounting NPAs. Interestingly, the same bankers who were asking the state to take care of their bad debts came against debts being waived off for farmers who are facing an acute crisis due to a variety of reasons leading to suicide deaths.
New trend of undermining democratic institutions
The Parliament is witnessing a new trend of bypassing Rajya Sabha in important matters including amendment of acts where both Lok Sabha and Rajya Sabha is responsible. The introduction of the Finance Bill first with 10 amendment of acts and later to change 40 different acts including Reserve Bank of India Act as well as the Representation of the People Act was according to opposition first in the history of Parliament itself. This act has robbed the Parliament its right to refer the bill to a standing committee or to scrutinise it clause by clause as to every amendment and the power of Raja Sabha to discuss, propose and incorporate amendment.
The very fact that the finance bill is a money bill gives the option of not incorporating Rajya Sabha view in the bills. All the five amendments passed in the Rajya Sabha was not incorporated into the finance bill, and it was passed as such. Centre has got 22 Money bills passed in Lok Sabha ignoring the Rajya Sabha, and this has kept a bad president for the functioning of the democracy as such.
Executive legislation through Ordinance rather than legislation
The ordinance is an independent legislation brought out by the Executive; it is the wisdom and authority being exercised by the Executive. An Ordinance can only be done in extraordinary situations when the houses are not in session or a critical condition. The Ordinance encroaches the right of the parliament in law making.
The government seems to issues ordinance after ordinance despite the fact that this could be brought before the parliament for legislation in the first instance. According to the PRS Legislative, the government in the last three years has promulgated 27 ordinances, including the ones on land acquisition, demonetisation, payment of wages bill, etc. Many of the ordinances were promulgated multiple times. It is interesting to read the observation of the Constitution Bench of the Supreme Court observation in Krishna Kumar Vs State of Bihar delivered on January 2, 2017, that promulgation of ordinances is a fraud on the Constitution and a subversion of democratic legislative processes. The latest subversion is the Banking Ordinance, on which the finance minister refused to share details of the ordinance before Presidential assent.
While there were interesting debates in the parliament this session, it seems some of the issues are not being captured in the discussions. This includes life and livelihood issues of people who are getting displaced/ affected by development projects, investments of bilateral and multilateral agencies including World Bank, Asian Development Bank, IFC and new development banks like New Development Bank, Asia Infrastructure Investment Bank, etc. A point to make in this regard is about New Development Bank, a multilateral Bank initiated by BRICS nations. There seems to be no real engagement of the Parliament in influencing the nature of the Bank given that Mr K. V. Kamat is the chief of the Bank. The Bank is in the process of developing its policies with regards to the environmental and social framework, disclosure policy, etc in their lending.
The other major lack of oversight is on negotiations in the trade policy. India is Negotiating a free trade agreement, Regional Comprehensive Economic Partnership – RCEP  in the Asia Pacific region. According to India FDI Watch, “In the past four years and to this day, no text has been made available to members of the public, parliamentarians, civil society or media,”. The trade negotiations are happening under a veil of secrecy where Parliament and parliamentarians are kept in the dark.
Parliament does not have an institutional space like Standing Committee where trade negotiations, Indian investment abroad and Multilateral and Bilateral investments to India and its effects on Indian policy environment is being discussed. The failure of the Standing Committee to come out with a report on the demonetisation in this session with full facts and figures were a let down on the process particularly when it was announced that it would come out before the end of the budget session.
 The finance bill is for ordinarily introduced to give effect to financial proposals of the Government of India for the following fiscal year and not to make permanent changes in the existing laws unless they are consequential upon or incidental to the taxation proposals.
 RCEP is a 16-nation trade pact that includes the Association of Southeast Asian Nations (ASEAN), along with China, Australia, India, Japan, South Korea and New Zealand, a region that accounts for 46 percent of the world’s population and that produced nearly 30 per cent of global GDP in 2016.