Rise in exports is at the cost of the environment
INDIA is now exports 40 per cent of the iso-proturon (a wheat pesticide) it produces, a far cary from two years ago, when it had to import a large part of its requirement. But in return for the increased in foreign exchange, the country will have to pay in terms of increased pollution and environmental damage.
The production of chemicals such as iso-proturon involves toxic or environmentally hazardous processes, and the rise in exports is the result of increasing environmental consciousness in Western countries, which is forcing them to shift the manufacture of iso-proturon and similar substances to developing countries, in particular India and China.
Indian chemical exports are targeted to touch Rs 4,248 crore in 1992-93, an increase of 64 per cent over the previous year. Exports of dye and dye intermediates are projected to rise to Rs 840 crore in 1992-93, an increase of 68 per cent over 1991-92.
Owners of chemical companies attribute this jump in exports to the lax enforcement of environmental laws in India. K R V Subrahmanian, managing director of Colour-Chem, a leading Indian manufacturer of dyes and dye intermediates, says, "In 40-50 per cent of our exports, the cost advantage is derived from the absence of safety and environmental practices and considerations. The saving on this account is passed onto foreign buyers."
Freedom to pollute From what Subrahmanian says, it is implied the export advantage of the Indian chemicals industry comes from its relative freedom to pollute. Several chemicals and dyes, whose manufacture entails the use of hazardous intermediates, are being shifted to developing countries. For example, Hoechst AG has recently increased its equity stake in Colour-Chem to 50.1 per cent from 40 per cent and Colour-Chem expects a 19 per cent increase in its turnover in the current year.
Bichhri, a village in Rajasthan, is a vivid example of multinationals shifting the onus of producing toxic chemicals to small and medium collaborators. Silver Chemicals Ltd, a small-sector unit in Bichhri that manufactures a dye intermediate called H-acid, has damaged the water supply within a three-km radius of the plant with its highly acidic and untreated effluents. The technology for manufacturing H-acid was transferred to India from the UK by Ciba-Geigy after complaints of effluent-dumping in the North Sea were lodged against the corporation.
Apportioning blame
Major industrialists in India contend a large amount of the pollution blamed on the chemicals industry comes from the small-sector units. Even this, they say, is because these units do not have the money or the space to install effluent treatment plants and also because they are just not aware of the environmental implications. R V Kanoria, joint managing director of the Kanoria Chemical Industries Ltd in New Delhi, says, "Environmental protection is at a premium in the small sector. Large units are more aware of the need to protect the environment -- all the 250-odd large chemical manufacturing units have taken adequate safety measures."
The lack of environmental safeguards in the small sector has serious implications for this sector produces 60 per cent of the intermediates in the chemicals industry. These are more hazardous than the final product and are inflammable, toxic and carcinogenic. For example, the manufacture of H-acid involves the use of biphenyl hydrocarbon, which is carcinogenic and produces acidic effluents. K P Nyati of the Confederation of Indian Industry says, "The waste-generating potential of a small firm is twice that of a large enterprise per unit of output."
Indian industrialists contend also the government has not done enough to make environmental protection economically feasible. "The capital costs of setting up an effluent treatment plant are high as are the interest rates. No rebates are given on electricity used for running these plants and the government subsidies for installing them -- a maximum of Rs 1 lakh -- are far from adequate. Several treatment plants are, therefore, kept as expensive showcases and not operated," says Nyati.
However, Central Pollution Control Board officials say their job is limited to ensuring proper waste treatment and adherence to safety rules. Thus, despite an elaborate system of rules for achieving both these ends, there is nothing to prevent the legal entry of dirty industries into the country.