adverse political climate in india

8/3/2019 Adverse Political Climate in India

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BY

DINESH BHATI B64SURAJ WARGHAT C 45

SUSHANT NAWALE C50

RAJESH YADAV C58


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Political Climate is off to India for a few days to participate inan event looking at linkages between technology, economicopportunities and finance. Its being organised by TERI which

partners with ippr in the Global Climate Network of think

tanks.

Our crude understanding of Indian climate politics is that itsgovernment, elected last year in a surprise landslide, mustdeliver on its mandate from poor, rural communities first andforemost. While India has in place a climate change plan ofaction, it is rural poverty that hampers its development; climate

policy must serve Indias social and economic goals.


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1. Establishment of technological and research institute

Indian govt. has established 500 technological institutes for providing education to Indianstudents. It has also established 1080 research institutes. In these institutes major names likespace research centre, medical research centre and agricultural research centre havedeveloped India technically.

2. Positive Technical policy

India has strong and positive technical policy for technological development. This policy opensdoor to import technology from foreign countries for increasing agricultural and industrialdevelopments.

3. High Growth Rate of Information Technology in India

In India, IT sector is developing with 35% growth rate, India is second country after China who isusing internet at large scale for e-commerce , e-education and e-accounting .

4. Incentive for promoting Technology in India

Indian Govt. has given 100% income tax exemption for expenses incurred in research oftechnology in India.


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Financial environment includes bond markets, forex markets,

stock markets, commodity markets, OTC markets, Real estate

markets and cash or spot markets. All these markets play an

important role in raising finances for the companies and at thesame time give profits to the investors. Basically a financial

environment comprises of the public sector enterprises, legal

authorities, fiscal authorities which are directly or indirectly

impact the financial system

, monetary institutions, financial

institutions, and official organizations. All these organizationshave a direct impact on the financial system of the companies

including private and public.


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Enron is a majority owner of Dabhol, a massive combined-

cycle power plant on the western coast of India's Maharashtra

state. The Dabhol power plant was initiated in 1992 and took

nine years to commence operation. The total project cost is

$2.9 billion. Enron owns 65%, Bechtel Enterprises owns 10%,

General Electric owns 10%, and the Maharashtra State

Electricity Board owns 15%. The project is 2,200 megawatts,

which Enron says is the largest gas-fired power plant in the

world. The plant closed in June 2001, due to a payment and

contract dispute between the Maharashtra state government

and the plant owners. Enron says it incurred over $1 billion

in costs for the plant.


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Founded :Omaha, Nebraska, 1985

Headquarters: Houston, Texas, United States

Key people: Kenneth Lay, Founder, former Chairman

and CEO

Industry: formerly Energy

Revenue: $101 billion (in 2000)

Employees: approx. 22,000 in 2000approx. 4 as of 2008

.Website: http://www.enron.com


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No impact study; no alternative site

Use of drinking water from population

replacement of 10% of water for villages

Pollution of rivers by used waters

Contamination of sea-water (down-load of 13

million liters of warm water per day) Destruction of plantations (mango, cashew) and

fisheries

Environmental Scandal: Ecological Abuse


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hidden debts

Artificial increase of stock value

In 2001, power from Dabhol was four times more

expensive than that from domestic power producers

New York Times stated: From the beginning, critics in

India warned that the power plant was economicallyunsound, and there have been suggestions that

corruption was involved in the awarding of the

contract


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29 top executives : 1M $ in stockoptions before bankruptcy whereasemployees were forbidden to sell

their options CEO alone : sold 67m $ worth of

options

4 500 employees were laid-off.Severance package: 13 500 $ peremployee

63% of the 21,000 employees lost

all their pension plan (plan 401K)

Political Scandal: Lack of Equity


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Displacement of 2 000 people andappropriation of land without priornotification

Arrest of 300 pacific protestors a day,

average of 8-day detention period,without trial and with violation ofhuman dignity

Demonstrators, mostly women,dragged from their homes, and beaten

(lath charge, tear gassing,helicopters), detention, humiliation,intimidation


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Ethics cannot be fragmented

Company governance must integratethe active participation of all

stakeholders who affect theorganization's activities or who areaffected by these activities

And in all four domains : profitability,

equity, dignity and viability


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Union CarbideCorporation.


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Occurrence: 3rd December 1984.

Place of occurrence: Bhopal, Madhya Pradesh, India.

Company: Union Carbide Corporation.

Chemical: Methyl Isocyanate (27 tons)


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Union Carbide Corporation


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Started in 1969 in bhopal

Phosgene, Monomethlyamine, Methyl Isocyanate (MIC) and the pesticide Carbaryl, also

known as Sevin.

Taken over by DOW Chemicals in 2001.

DOW refused Union Carbides Liabilities in Bhopal, India.


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Gas Vent Scrubber Gas Vent Scrubber Stack


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Respiratory Disorders Irritation to the lungs, causing coughing and/or shortness of

breathing. Higher exposure caused build up of fluids (pulmonary edema). Caused

Asthama.

Cancer Hazard Caused mutation (genetic changes). It caused cancer.

Reproductive Hazard Association between exposure to Methyl Isocyanate and

miscarriages. It may damage the growing fetus.May also affect fertility in men and

women.

Traces of many toxins were found in the Brest Milk of mothers and were inturn transmitted

to the recepient babies.


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Lead, Nickel, Copper, Chromium, Hexachlorocyclohexane andchlorobenzenes were found in soil samples.

Mercury was found to be between 20,000 to 6,000,000 times thestandard level in soil.


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Compensation of $470 million ($500 per dead).

Twenty years of passiveness.

Case was reviewed and put up in American Court.

DOW Refused Union Carbides Liabilities in Bhopal, India.


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The gas-affected people of Bhopal continue to succumb to injuries sustained duringthe disaster, dying at the rate of one each day. Treatment protocols are hampered bythe company's continuing refusal to share information it holds on the toxic effects ofMIC.

Both Union Carbide and its new owner Dow Chemical claim the data is a "tradesecret," frustrating the efforts of doctors to treat gas-affected victims. The site itself

has never been cleaned up, and a new generation is being poisoned by the chemicalsthat Union Carbide left behind.

It wasnt until 1989 that Union Carbide, in a partial settlement with the Indiangovernment, agreed to pay out some $470 million in compensation.

The victims werent consulted in the settlement discussions, and many felt cheatedby their compensation -$300-$500 - or about five years worth of medical expenses.

Today, those who were awarded compensation are hardly better off than those who

werent. In 1991, the local government in Bhopal charged Warren Anderson, Union Carbides

CEO at the time of the disaster, with manslaughter. If tried in India and convicted,he faced a maximum of ten years in prison.

Union Carbide's charges?


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Values your opinions


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Its a singapore based firm.

Corporate fraudeluent

1) Multilevel marketing firm pretends market reaserch firm.

2) Owe money from the people in form of registration fees

adverse political climate in india

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