Daily Excelsior... Editorial

EDITORIAL

By Manoj Gupta

By Chandra Mohan

Though bio-fuel is touted as one of the better and cheaper environment-friendly alternatives for motor vehicles, it has been attracting a rash of negative publicity particularly after corn-derived ethanol produced in the US has driven up corn prices as a result of which tortilla, a must food item in Mexican homes, is becoming unaffordable in Mexica. ......more

Energy and
Resource Security

By Dr Bharti Chhibber

EDITORIAL

Avoid violence

By no yardstick can the political differences be settled by indulging in violence. Their origin must lie in ideological convictions which are best left for the electorate to accept or reject. This is the way a democracy ought to function. In our country including in this State, however, it seems there remain quite a few knots despite the Election Commission's praiseworthy efforts to enforce all-round discipline. This is perhaps true of every democracy in its initial stages. Even the United States which is presently deemed to be the world's most powerful democracy has not been immune from problems in the beginning. That does not mean that we should lose time in adopting proper perspective and approach. Democracy is adjudged as the best system of governance because it is based on the will of the majority of the people. It gives scope for free expression. It is the responsibility of contenders for power to explain their viewpoint to voters and leave it to them to act according to their perception. It has to be a peaceful process. One is, therefore, dismayed to note that National Conference (NC) and People's Democratic Party (PDP) supporters at times choose to resolve their disputes by ignoring certain acceptable norms. According to a report in this newspaper Mr Ghulam Nabi Lone Hanjura, Chairman of the Legislative Council, was held hostage by a pro-NC mob for an hour in Budgam district. How can the presiding officer of a house of the legislature be met with such treatment? It is anathema to a democratic system. From our report it appears that the NC workers were provoked because Mr Lone's father entered into an altercation with some of them. One of the armed guards of Mr Hanjura's father is said to have struck baton on the head of a NC worker who sustained injuries. This again is something that is to be condemned. Admittedly, the politicians in power and their close relatives have to be escorted by security personnel these days because of threats by forces inimical to this country. The men in uniform have a role to perform. But they can't overstep their prescribed limits. Indeed, they must be reined in by persons whom they are supposed to protect.

Both the incidents are said to have taken place when NC and PDP members came face to face while going for their respective rallies. The NC meeting was addressed by Mr A. R. Rather, Leader of the Opposition in the Assembly. There is a bit of irony about this. Mr Rather is one of the most skilled legislators; he argues his case logically instead of playing to cameras and galleries. How can his associates act differently? Was the provocation too much for them?

Whatever that may be the NC and the PDP should not let the matters drift. The election year has just begun. In the build-up to the polling day they will be called upon to come across each other on numerous occasions. They should exhibit patience and reserve their fire only for speeches. Their pugnacious tendencies can be counter-productive. The two parties have senior leaders at the helm. How can they be unaware that they have common enemies who are also opposed to the elections? The latter variety can exploit their misplaced aggression to its advantage.

Olympic boycott?

Is the boycott of the coming Olympics in China possible? China's conduct vis-à-vis Dalai Lama and Tibet is utterly distasteful and reprehensible. By now it is stated to have crushed for the time being the latest uprising against its rule in Lhasa, the capital of Tibet, describing it as "a life-and-death battle". There is no way, however, that the Dragon can squash the sentiments of a wrong people of a land it has usurped. It is pouring venom against Dalai Lama, the spiritual and temporal ruler of Tibet who was forced to flee from his country in the 1950s. China's description of him as "a wolf in monk's clothes" deserves to be condemned. Who does not know that Dalai Lama has always stood for peace? China has again thrown its iron curtain around Tibet. Is it doing a repeat of Tiananmen Square where it had killed several hundred democracy-loving people in 1989? Its leaders have left no doubt about their intentions: "We are in the midst of a fierce struggle involving blood and fire." How will their misdeeds influence the Olympic Games? The Olympiad is scheduled to begin from August 8. It is a coincidence that a similar controversy had concerned another Communist nation --- the erstwhile Soviet Union --- in recent decades. In fact, many countries had boycotted the Olympics held in Moscow in 1980. They had done so in protest against the Soviet invasion of Afghanistan in the preceding year. The United States had given the call for the boycott and it was joined by quite a few others including Japan, West Germany, Canada and China (it had returned to the Olympic movement by then after a long dispute with the International Olympic Committee over the status of Taiwan). There was a truncated representation from all over the globe. Several countries had allowed their athletes to go to Moscow but in their individual capacity. As a consequence their delegations participated under the Olympic flag and not their national flags. Four years later when the US hosted the Games in Los Angeles the Soviet Union hit back and declared a boycott against "chauvinistic sentiments and an anti-Soviet hysteria being whipped up in the US." It was joined by 13 allies.

China's decision to keep off the Moscow Games but go to Los Angeles is described as one of ironies of the Cold War. Now it is faced with a predicament of its own making. Tibetan activists like Hollywood star Richard Gere are leading the movement for the global sporting community to keep off Beijing: "In this situation if the Chinese do not act in the proper way, change their ways, acknowledge what is going on, allow free access to communication, then I think that absolutely we have to boycott." Human rights leaders have seized the chance to drive home their repeated complaint about "the long and well-documented history of torture of political activists by China's security forces." The Olympic movement is not supposed to be an arena of politics. Its very objective is to strengthen human bonds regardless of other considerations. It favours international cooperation and fight against social exclusion. Yet, it is not free from other global pressures. It has been often witnessed. The fate of the Beijing Olympics will, therefore, be watched with interest.

Promoting entrepreneurship

By Manoj Gupta

Looking for a job? Why not be an entrepreneur instead? The Small Scale Industries in India have a tremendous potential for turning our teeming millions into entrepreneurs. The small scale sector has a long history of promoting inclusive employment-oriented economic growth. The Micro, Small & Medium Enterprises are contributing significantly to employment generation and poverty alleviation. The micro and small enterprises constitute an important segment of Indian economy in terms of their contribution to country’s industrial production, exports, employment and creation of entrepreneurial base. The Central and State Governments have been implementing several schemes and programmes for promotion and development of these enterprises.

Training

Entrepreneurship development or training is one of the key elements for development and promotion of micro and small enterprises, particularly, for the new or first generation entrepreneurs. Entrepreneurship Development Programmes (EDPs) of various durations are being organized on a regular basis by a number of organizations e.g. national and state level Entrepreneurship Development Institutes (EDIs), Micro, Small and Medium Enterprises Development Institutes (MSMEDIs) [earlier known as Small Industries Service Institutes (SISIs)], national and state level Industrial Development Corporations, Banks and other training institutions/agencies in private and public sector etc., to create new entrepreneurs by cultivating their latent qualities of entrepreneurship and enlightening them on various aspects necessary for setting up micro and small enterprises. Besides, various Industrial Training Institutes (ITIs) and private training institutions are also organising vocational training (VT) programmes, skill development programmes (SDPs) and entrepreneurship-cum-skill development programmes (ESDPs).

After Training, What?

There are wide spread variations in the success rate, in terms of actual setting up and successful running of enterprises, by the EDP/SDP/ESDP/VT trained entrepreneurs. It has been observed that new entrepreneurs generally face difficulties in availing full benefits under available schemes of the Government/financial institutions, completing and complying with various formalities and legal requirements under various laws/regulations, in selection of appropriate technology, tie-up with buyers and sellers etc. In order to bridge the gap between the aspirations of the potential entrepreneurs and the ground realties, there is a need to support and nurture the potential first generation entrepreneurs by giving them handholding support during the initial stages of setting up and managing their enterprises.

A Handholding Scheme

Shri Mahabir Prasad, Minister of Micro, Small and Medium Enterprises launched a new handholding scheme for the prospective first generation entrepreneurs called ‘Rajiv Gandhi Udyami Mitra Yojana’ (RGUMY) in New Delhi. The scheme aims to provide handholding assistance to first generation or new entrepreneurs through lead agencies or Udyami Mitra, who shall provide guidance to the potential entrepreneurs and help them in completion of various tasks and formalities necessary for the establishment of the enterprise.

Eligibility For Udyami Mitras

Under RGUMY, financial assistance would be provided to the selected lead agencies i.e. Udyami Mitras for rendering assistance and handholding support to the potential first generation entrepreneurs. Following agencies/ organizations can be appointed as the lead agency i.e.Udyami Mitra:

Existing national level Entrepreneurship Development Institutions (EDIs);

Micro, Small and Medium Enterprises Development Institutes (MSMEDIs)/Branch MSMEDIs.

Central/ State Government Public Sector Enterprises (PSEs) involved in promotion and development of MSEs e.g. National Small Industries Corporation (NSIC) and State Industrial Development Corporations etc.

Selected State level EDIs and Entrepreneurship Development Centers (EDCs) in public or private sectors;

Khadi and Village Industries Commission (KVIC)

Special Purpose Vehicles (SPVs) set up for cluster development involved in entrepreneurship development;

Capable associations of MSEs/SSIs;

Role And Responsibilities Of Udyami Mitras

The selected lead agencies i.e. Udyami Mitras would be expected to render following services:

Networking, coordinating and follow up with various Government departments/agencies/ organizations and regulatory agencies on the one hand and with support agencies like Banks/financial institutions, District Industries Centers (DICs), technology providers, infrastructure providers on the other hand, to help the first generation entrepreneurs in setting up their enterprise. Udyami Mitras are expected to help the first generation entrepreneurs in:

Identification of suitable project/product/enterprise and preparation of bankable project report for the same; creation of the proprietorship firm/ partnership firm/ Company/ Society/ Self Help Group (SHG) etc.; filing of Memorandum (as prescribed under MSMED Act 2006); accessing bank loans, admissible capital subsidy/ assistance under various schemes of the Central /State Government and other agencies/organizations/financial institutions/ Banks etc. by networking with respective agencies; assistance and support in establishment of work shed/office; sanction of Power load/Electricity connection; selection of appropriate technology and installation of plant and machinery/office equipment etc.; obtaining various registrations/ licences/ clearances / No Objection Certificates (NOCs) etc. from the concerned regulatory agencies/ Government departments/ local bodies/ Municipal authorities etc.; allotment of Income Tax Permanent Account Number (PAN) and Service Tax/Sales Tax/ VAT registration etc.; sanction of working capital loan from the banks; arranging tie up with raw material suppliers; preparation and implementation of marketing strategy for the product/ service and market development; establishing linkage with a mentor for providing guidance in future and creation of web page and email address.

Once the enterprise has been successfully set up, the Udyami Mitras would also monitor and follow up on the functioning of the enterprise for a further period of minimum 6 months and provide help in overcoming various managerial, financial and operational problems. (PIB)

Bio-fuel: end or beginning

By Chandra Mohan

Bio-fuel has been painted as a villain that will inflict a more serious problem on the hapless planet earth. A report prepared by British members of parliament says that bio-fuel often increases greenhouse gas emissions and exacerbates the climate change that it is supposed to avoid. Merely increasing the use of bio fuels will not mitigate the problem of climate change and the harm it is causing to man and his planet.

It is widely believed that the food crops that go into the production of bio-fuel will increase food prices manifold, which in turn may lead to worldwide hunger. The message is grim because grain production is already in decline the world over.

The cry against bio-fuel has not subsided even when $100 a barrel looks like the base price of crude oil and its climb towards the $200 a barrel mark in maybe less than a year does not sound like a wild guess. Some analysts say it will hit the $250 a barrel mark. It will probably be a matter of debate which of the two is a nearer and more serious threat: pollution or the astronomical levels of crude oil.

For countries like India the global tirade against bio-fuel may be especially embarrassing as the campaign for popularising it in the country remains in place despite the gathering storm against it. For instance, it was only in February 2007 that the government of Haryana had signed seven MoUs with independent power producers to set up 21 biomass-based power stations at eight different locations to produce 686 mw of power. The 'raw material' to be used includes rice and wheat husk and also sugarcane straw, all from an area within a radius of 15 to 20 km of the plants.

Haryana has identified a potential of 1400 mw from biomass. But that is only a fraction of its projected need for 2010, which is 40,000 mw. Meanwhile, officials continue to sing praises of Jatropha, a bio-fuel crop that is seen as India's answer to the oil crisis caused by rocketing prices and the country's insatiable hunger for oil, thanks to its galloping economy.

The government will cut a sorry figure if it renounces the bio-fuel policy after investing a great deal of money and thought into it. But with questions being raised over the efficacy of bio-fuel the government may have to decide if it wants to continue with active bio-fuel programmes vigorously or put in slow motion. The present position of the government is that it will continue to encourage Jatropha cultivation for bio-fuel production but on degraded land. It may be a signal for a change in the bio-fuel policy, but it has to be pointed out that it has come without any assessment of Jatropha's adverse impact on the cultivation of bio-fuel crops.

Of course, the embarrassment is not confined to India. The European Union had announced some time ago that by 2020 it wants the fuel for 10 percent of cars in its member nations to come from bio fuels. The target, which was set with a view to lessening the impact of climate change, has not been given up, as far as one knows. The issue of climate change has been agitating the world seriously for almost two years now when the fear of its serious consequences has forced a change in the earlier lackadaisical approach towards it.

Roughly speaking, anything that burns but made with vegetable matter can be called bio-fuel. It was initially hailed as one of the best solutions for dealing with the problem of climate change because bio-fuel use can, at least so it was believed then, reduce greenhouse gas emissions. Its application in the transport sector was greatly advocated.

But the 'vegetable matter' needed for producing bio-fuel is grown on farmlands. Now experts say that 9 percent of the world agricultural land will be needed to replace just 10 percent of the fuels used by the transport sector. The figure does not suggest that bio-fuel is a better source to counter the emission problems arising from the transport sector.

It is furthered strengthened by a UN study, which says that bio-fuel will be a more effective alternative if it is used for heating and generating power rather than used in the transport sector.

So, there is still some reason to produce and use bio-fuel. Recently developed technologies enable bio-fuel to be produced from waste from cash crops and also from hardy plants that grow on poor soils. In a given area it is possible to grow two crops, for food and bio-fuel. This can even make food cheaper as farm incomes rise from two crops. A lot of hope rests on the second generation of bio fuels.

However, it was never claimed that bio fuels alone can address the problem of climate change. The issue is about alternatives to fossil fuel, which are many but so far their application has, for various reasons, been limited. The world is still to exploit the energy potential of wind, thermal, solar and ocean currents. As the harmful effects of climate change become more and more evident much of the world is committing itself to reduced emissions. Even the hitherto reluctant US is likely to come on board. Thanks to the relentless upward ride of crude prices, the world has hardly any option other than marching towards 'renewable' and 'alternative' sources of energy. And bio-fuel does figure in this picture. (Syndicate Features)

Energy and Resource Security

By Dr Bharti Chhibber

Resources security, refers to access to both non- renewable resources like strategic minerals and fossil fuels as well as renewable water and marine resources including fish. In terms of renewable resources, resource security is usually discussed as security of production and supply. The main objective of energy security is to assure adequate and reliable supplies of energy at reasonable prices and in ways that do not jeopardise higher national values and objective. The 1970's oil crisis brought the issue of energy security to the forefront aggravated by the fast depletion of fuel wood as a source of energy. Today we are straining the Earth's carrying capacity (the largest number of any given species that a habitat can support indefinitely). Part of this could be attributed to the process of modernization. What is needed is environmentally sustainable economic growth. Individual states especially in South Asia and Southeast Asia cannot protect themselves from these energy security threats alone. So, to deal with these problems, they should regionally cooperate.

The need for energy security is an important dimension of both ASEAN and SAARC security that has environmental implications. Energy was one of the important areas identified by the Second Meeting of Planners for possible cooperation among the SAARC states. A workshop on "Renewable Energy Resources" was held in Pakistan in 1986. In 1989, as a follow up to the decision of the ninth session of the Standing Committee, a meeting of experts in the field of Energy Modelling Techniques took place in New Delhi. One of the important recommendations of the Expert Group Meeting is that each member state drew up a list of institutions and agencies working in this area for circulation through the SAARC Secretariat so that an effective networking arrangement could be eventually set up for ensuring regular exchange of information and expertise. The fourth SAARC Summit held in Islamabad in 1988 decided to commission a study on the Greenhouse Effect and its Impact on the Region. The study shows that for SAARC countries the energy sector is the primary contributor of carbon emissions. The fuel source, however, varies between countries depending on the energy base of their economy. For example, in India coal is the major contributor to emissions; in Sri Lanka and Nepal it is biomass particularly fuel wood; in Bangladesh it is natural gas; while in Pakistan it is oil and gas. The study concludes that the largest impact will be on Bangladesh where there will be a 1.5 metre rise in the sea by the middle of this century. The rise is expected to inundate about 15.8 per cent of the total area of Bangladesh. As a result 13.74 per cent of the net cropped area and 28.29 per cent of forest area of the country will be lost. Similarly, in Sri Lanka, if the present trends in rainfall and temperature variations continue, there is likely to be change in the present boundaries of the agro-ecological zones with definite effects on agriculture.

Maritime Accidents and Environmental Disasters

During 1978-94, 58 vessel casualties in the Strait of Malacca resulted in oil spills, and as many as 8 liquefied gas tankers were involved in accidents in the area. The worst of the oil spills occurred in 1992 when the tanker "Nagasaki Spirit" collided with the container ship "Ocean Blessing", resulting in a spill of approximately 13,000 tonnes of oil. n 1993, the worst oil spill for India took place when the tanker "Macrsk Navigator", carrying 300,000 tonnes of light crude, collided with another tanker, the "Sanko Honour" in the Great Channel of the Andaman Sea, at the entrance to the Strait of Malacca. An estimated 18000 tonnes of oil spill took place. Fortunately, the impact of the oil spill was negligible on the Indian EEZ in the Andaman Sea.

Coal is India's most abundant indigenous energy resource, supplying over half of India's total energy demand. India imports coal to meet only 20 per cent of its total energy demand, but it must import approximately 60 per cent of its oil. With the increase in South Asian region's dependence on imports of petroleum products, pressure will increase on their foreign exchange reserve.

Full and proper exploitation of unharnessed and untracked natural resources like Bangladesh where large deposits of natural gas have been found recently, exploitation of hydel resources in Bhutan and Nepal offers a way out through regional cooperation. Non-conventional energy sources such as wind power, solar power and bio-gas are already being developed in the South Asian region. As these cannot meet all the needs of the region, hydropower is the best option in terms of cost effectiveness as well as environmental safety. A report published in 1999 highlights, "Amongst the best sources of hydropower are multi-purpose hydel projects. These yield irrigation, flood-control and navigation benefits in addition to producing electricity. It can preserve and protect the watersheds of these river systems thereby compelling the upland environmental protection. The South Asia Region has one of the richest sources of hydel power in the world. Against a very staggering estimated regional hydro-power potential of the countries of the region, a very small proportion (hardly 11 per cent) has been exploited so far."

Energy Cooperation at Sub-regional/bilateral level

Vast water resource of Bhutan remains untapped as it does not have a major domestic market for electricity. Till 1987, only about 3.5 MW electricity was generated in seven micro-hydel stations and another 10.5 MW in some diesel stations. First major hydro scheme is that of Chukha hydro power project on Wangchu river. India built and financed the 336 MW Chukha I project with an estimated cost of Rs 245 crore. Sixty per cent out of this was given on grant basis and the rest as loan. Bhutan earns Rs 360 mn from power exports through this project. The success of the project has opened further avenues for cooperation in this field. India has agreed to purchase all the energy available for export. Transmission lines connect Chukha to the East Region Electricity Board in Kolkata. The Indian States of West Bengal, Sikkim, Assam, Orissa and Bihar share this power.

Further, many Mekong riparian states are promoting the GMS cooperation to exercise some influence over China's plans to build more than a dozen power plants in the river zone, which poses potentially serious environmental security problem of intense water resource competition between the upper and the lower Mekong states. In 2007 ASEAN members and Australia, China, India, Japan, New Zealand and South Korea signed an agreement at Cebu (The Philippines) to help reduce their dependence on conventional sources of energy and promote biofuels.

Thus energy and resource security component of broader environmental security is vital for the sustainable development of any country, any region. In fact, Greater Mekong Subregion Cooperation as well as Bangladesh export of natural gas to India show how interrelated politico- strategic, economic and environmental issues are. Apart from economic benefits, better management of resources, avoidance of energy disasters that the GMS cooperation projects entails, some ASEAN members (Thailand and Vietnam) also see it as a stepping stone to develop good friendly relations among themselves. ASEAN states also want to tie China to a sub- regional cooperation. It is very important that the agreements are implemented more so in the case of SAARC. Side by side bilateral dialogues should be encouraged and so is the role of NGOs. Enhanced people to people contact play a vital role in today's environment. -CNF