International opinion divided on funding
AT THE World Bank (WB) executive committee meeting in October 1992, held to decide future funding for the Sardar Sarovar project, the opinions expressed were in three main categories:
China, Libya and Kuwait felt the WB should continue funding and reject a report by Bradford Morse, a former US senator and head of the UN Development Programme, appointed by the WB to head an independent committee to review the project. The Morse Committee report submitted in June 1992 recommended the WB should "step back" from the project.
Germany, Canada, Japan, Norway and Australia, suggested suspending disbursements for dam construction but continuing funds for studies and technical assistance.
Gambia, Chile, Saudi Arabia, Venezuela and the Philippines, wanted WB aid to be suspended for six months and resumed if India fulfilled WB-stipulated nine benchmarks by then.
In other reactions, Malaysia took the position that the WB must address the serious concerns raised by the Morse Committee to maintain its credibility, but must not withdraw from the project. The UK and the Netherlands called for continued funding because they estimated India could meet the WB benchmarks.
Meanwhile, an appraisal by officials of the Union ministry of water resources, the benchmark-monitoring agency, says all procedural matters have been completed. But they concede delays have left the contentious benchmarks involving studies and land acquisition behind schedule.
BENCHMARK
A.Behind schedule
• States sharing cost of rehabilitation and resettlement. Presently, Madhya Pradesh, Maharashtra and Rajasthan owe Gujarat about Rs 300 crore.
• Preparing reports on economic analysis and environmental impact assessment for command area.
• Preparing cooperative rehabilitation and resettlement packages for different components of the project. Recently, the Union ministry of environment and forests refused to transfer 1,500 ha of forest land in Taloda, Maharashtra, for resettling tribal oustees. MEF based its refusal on the Forest Conservation Act.
• Preparing socio-economic surveys of canal-affected people and their interim rehabilitation, reports on project implementation and on the Narmada basin environmental management plan.
B.Prepared on time
• Certification procedure for linking dam construction to rehabilitation and resettlement. • Posting of staff.
• Review of construction schedule and constitution of land purchase committee.
• Environment work plan.
• Implementation of processes and appeals mechanism for the rehabilitation and resettlement package.