THE UPA Government is pushing the country into imports trap under pressure from motley of foreign lobbyists and NGOs.
The shift from self-reliance and self-sufficiency to imports dependency is endangering India’s food security, energy security and overall national security.
The shift is also leading to denial of job opportunities for millions at home. Simultaneously, the imports bias is generating employment overseas with Indian investments in different projects. All these factors would hasten the country’s march towards socio-economic turmoil.
Be it agriculture, be it minerals, be it coal-based power generation, be it atomic power, be it engineering, be it pharmaceuticals, be it fertilizers, the shift towards imports is discernable.
Take the case of agriculture first. A Chief Ministers’ Working Group on Agriculture Production (WGAP), for instance, has recommended long-term arrangement for import of pulses and oilseeds.
In its draft recommendations, WGAP suggests: “Indian companies can be encouraged to buy lands in countries like Canada, Myanmar, Australia and Argentina for producing pulses under long term supply contracts to Indian canalising agencies. Similarly, such arrangements can be arranged in ASEAN countries for securing oilseeds supply. When these arrangements are being tried for crude oil, they would also be considered for food crops. Alternative arrangements like entering into long term supply contracts with farmers’ organisations in these countries or trading companies should also be considered. We should seriously consider these options for at least 2 million tonnes of pulses and 5 million tonnes of edible oil for 15-20 years.”
WGAP, chaired by Haryana Chief Minister, was constituted by the Core Group of Union Ministers and Chief Ministers on prices of essential commodities in April 2010.
The attempt to draw parallel between crude oil and pulses & oilseeds is fallacious.
Crude oil is a mineral. We all know the country is not well endowed with modest reserves of oil and gas, necessitating imports. Burgeoning imports of crude oil and gas is major reason for India’s imports outpacing exports year after year, resulting in widening trade deficit that amounted to $ 6.65 billion during April 2009-April 2010.
Pulses and Oilseeds are not natural resources buried in the soil. They are cultivable. They are renewable. There is no reason why India cannot attain self-sufficiency and later generate surplus for these two crops as well as for other food crops.
All that is required is a combination of genetic engineering, drip irrigation, good crop insurance, remunerative crop prices and latest agronomic practices.
This strategy of growing crops abroad for grain shipment to India does not take into account the risk of countries imposing ban on exports or imposing export duties when they themselves face food shortages.
As it is, several Indian companies have acquired land abroad to raise plantations for edible oilseeds, for producing pulp for paper and viscose and for growing horticultural crops to sustain food processing business.
Irrational logic similar to petroleum-pulses-oilseeds parallel has been advanced by vested interest to justify the Government’s craze for coal imports including acquisition of coal mines abroad. The temptation to imports at the cost of indigenous production is also visible in uranium, aluminum and other metals.
Take the case of atomic energy. The Ministry of Environment & Forests (MOEF) last month turned down Department of Atomic Energy’s (DAE’s) application to explore uranium in South Garo Hills district of Meghalaya.
The Standing Committee of National Board on Wildlife (NBW-SC) took this decision under the Chairmanship of Environment and Forests Minister Jairam Ramesh.
The MOEF said: “The standing committee took this decision keeping in view the sentiments of local people and a number of representations received from local civil society groups.”
The no-exploration decision was taken knowing well the fact that India’s atomic power generation and nuclear self-defence is constrained by shortage of uranium. Clearly, parochialism has overtaken nationalism.
The MOEF and its appendages have indeed relegated energy security to the background by giving over-riding importance to environmental concerns and NGO’s outbursts.
This is leading to delays in clearance of several power projects, rejection of others and complete ban on new coal mining projects in large tracts across the country.
The other MOEF’s Expert Appraisal Committee for Environmental Appraisal of Nuclear Power Projects did not fix the terms of reference (TOR) for not even a single atomic power project. TOR is green signal for an applicant to undertake environmental impact assessment and associated studies for securing public consent and MOEF’s environmental approval.
The committee considered application of Nuclear Power Corporation of India Limited (NPCL) for projects with aggregate capacity of 16,200 MW on June 15, and deferred all of them. It asked the company to submit detailed information on each project to enable it to fix TOR.
Several coal-based power projects have been either deferred or rejected on different grounds such as concern for wildlife and environment and absence of coal linkage for the project.
And the coal linkages are becoming difficult to secure with MOEF identifying no-go areas in nine major coalfields where it would not consider fresh applications for forestry clearance for coal mining to protect forests and wildlife. A similar exercise for the remaining major coalfields is underway.
Thus, 35 per cent to 44 per cent of the country’s coal-bearing area is expected to come under the no-go category. A similar exercise for the remaining major coalfields is underway.
The red banner against coal mining in large tracts across the country is further pushing the companies to opt for imported coal-based projects in coastal areas.
Many companies have already acquired coal mines abroad, thereby creating job opportunities for people of those countries. No one visualised the fate of imported coal-based power generation in the event of those countries putting tariff and non-tariff barriers against coal imports. Indonesia and Australia are already thinking of such barriers.
If India can impose export duty on iron ore exports and even consider banning such exports, why should other countries not take initiatives to conserve their natural resources?
India’s quest to emerge as major exporter of metals such as steel and aluminium has been smothered by delays in grant of approvals for mining of iron ore, bauxite and coal.
Instead of producing export surpluses in agriculture, metallurgy and other sectors to generate foreign exchange to finance oil and gas imports, UPA is opting for soft, short-sighted and easy option of imports in other sectors too.
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