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Land scam

  • 14/04/2006

Land scam Wood-based industry says that it needs land, because it needs continuous and sustained supply of raw materials. In addition, there are new demands on this land. There is growing interest in biodiesel, with many Indian and foreign companies jumping into the fray to produce fuel from plants. There is the possibility of earning carbon credits, as trees sequester carbon. There is money in forests. And industry wants it.

The logic that the pulp and paper industry is selling is simple. It needs to grow and according to estimates, in 10 years there will be a demand gap in paper and paper-boards of 5-6 million tonnes. It needs 1 to 1.2 million ha of degraded forest land to grow its raw material. This will give it its competitive advantage and it can increase its share in the global market. If this happens, it will need another 1 million ha of degraded forest land to produce "surplus' for export. In all this, the country benefits. Foreign exchange is saved. In addition, wood is grown, employment generated. In addition, carbon credits are pegged at us $30 per ha, meaning industry would earn Rs 173 crore annually from carbon trading. Things can't get better.

True or false?
Critics of the scheme to give land to industry say while it is the case that industry needs raw material, the question is why it needs captive plantations. The Saxena report pointed out that if this is done, then all other industries based on agricultural raw material should make their growth dependent on being given land

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