Press release : 27 February 2007

Widespread Environmental and Social Concerns Brushed Aside during Envtl Public Hearing on massive expansion plans of West Coast Paper Mills, Dandeli, Karnataka
Financiers of Expansion plans include IFC (World Bank) and ICICI Bank

The 20th February 2007 Environmental Public Hearing for the proposed Rs. 1260 crore expansion and modernisation of West Coast Paper Mills Limited (WCPM) was marred by chaotic scenes of heckling, intimidation, and hooliganism. A team from Environment Support Group, Bangalore visited Dandeli and participated in this public hearing. Even as the presiding officer Ritesh Kumar Singh (District Commissioner of Uttara Kannada District of Karnataka) struggled to restore order to the proceedings, a large group of vocal individuals disrupted the proceedings and misbehaved whenever anyone attempted to express any sort of concerns about WCPM’s operations. As a result, the supposedly ‘public’ hearing was reduced to a promotion event for WCPM with company supporters exclusively waxing eloquent about ‘contributions’ to Dandeli and the surrounding areas.

It is ironic indeed that the public hearing under the Environment Impact Assessment (EIA) Notification, 2006 (as part of the mandatory environmental clearance mechanism for pulp and paper manufacturing industries) did not permit fair expression of the very significant environmental and health impacts that WCPM has been repeatedly accused of over the years. It is also shocking that potential social and environmental implications of WCPM’s proposal to secure 68,000 hectares of land (680 sq. km, an area larger than Bangalore) within a 250 km radius of Dandeli were not discussed during the Public Hearing or in the Rapid EIA Report prepared for the proposed expansion.

WCPM was promoted in the year 1955 and is a part of the Kolkata based Shree Kumar Bangur Group of Companies. The company, which is located in the Dandeli reserve forests (and less than 10 kilometres from the Dandeli Wilife Sanctuary), draws all its water requirements from the Kali river. Ever since it commenced operations in 1959, WCPM has been discharging effluents from its industrial processes into the Kali river. The mill, which had an installed initial capacity of 18,000 Metric Tonnes Per Annum (MTPA) in 1959 has since increased its capacity almost ten-fold to 1,76,221 MTPA in 2005-06. WCPM now proposes to carry out an expansion cum modernization program to almost double its overall capacity to 320000 TPA. The expansion is likely to be financed by the International Finance Corporation (World Bank group) and ICICI Bank of India.

WCPM has a proven record of non-compliance on various grounds: production in excess of consented quantities, water use in excess of consented limits, effluents discharged in excess of permitted limits, effluents discharged that violate environmental standards, and illegal use of forest land in contravention of stated purpose. All of the above non-compliances are well-documented, either by regulatory agencies like the Karnataka State Pollution Control Board or the Central Pollution Control Board, or by research institutes and NGOs. Yet, there has been no record of redressing these past violations in any manner either by the regulatory agencies or the ministries concerned.

As a result of continued pollution of the Kali river, there has been sufficient empirical evidence of health impacts (in Dandeli and also in downstream areas) on livestock and human beings from a variety of sources including commissioned studies. The most egregious case was that of an outbreak of gastroenteritis in the region in 2003. There is also sufficient recorded empirical evidence of adverse impact on fishes and fisheries, as well as on the impact of using the Kali water for irrigation on agricultural land. Yet, there has not been any study of these impacts and no serious attempts at redressing the damage done thus far. Even if WCPM has cleaned up its act and has installed a functional Effluent Treatment Plant (as has been claimed), these past damages cannot be ignored and have to be redressed. Most notable is the paucity of information on social and environmental implications of WCPM’s proposed use of 68000 hectares (captive plantations to source raw materials).If people are going to be displaced, WCPM has to rehabilitate them prior to any permitted expansion.

All these matters need be addressed before considering WCPM's application for environmental clearance for the expansion of its production. Undoubtedly, Dandeli’s economy and employment is vitally linked to WCPM’s operations, but this cannot excuse the company’s non-fulfilment of legal and social obligations.
A written representation by ESG highlighting these issues was subsequently submitted by ESG to the Uttara Kannada District Commissioner, and a copy of the representation can be downloaded from www.esgindia.org.
Leo Saldanha
Coordinator
Environment Support Group