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Case Study 4 February 2000

The Narmada Valley Development Project

Context
There has been a great deal of controversy in recent years regarding large scale river dam projects, such as the Three Gorges Project in China. Whilst such projects offer the prospect of abundant hydroelectricity, water supply and irrigation they frequently involve the flooding of agricultural land and the submergence of settlements. One of the most controversial schemes at present being implemented involves the Narmada River in India.

What is the Narmada Valley Development Project?
The Narmada River rises in the Maikala Range, to the south-east of Jabalpur in central northern India. It flows west through a broad and fertile valley to join the Arabian Sea via the Gulf of Cambay (Figure 1).

The Indian government's plan is to construct 30 large, 135 medium and up to 3,000 small dams to harness the waters of the Narmada and its tributaries. The government has put forward several reasons for the dams :-

  • there are serious water shortages in parts of Gujarat (see Figure 1), which has been prone to droughts
  • water for irrigation would open-up marginal land for agriculture and increase overall production
  • electricity (from H.E.P.) will help India along the path of development

Why is the plan controversial?
There are a great many opponents to the plan, both at home and abroad. The International Rivers Network campaigns against large scale dam projects (Figure 2) and it cites several reasons why the Narmada plan should not go ahead in its current form :-

  • the plan is unnecessarily large and costly. Smaller, more sustainable and localised projects, perhaps using alternative technologies, could help to relieve some of the water shortages in Gujarat.
  • some of the areas in greatest need of irrigation are planned to be at the far end of the irrigation canal network and would not receive water until 2020
  • the plans are based on insufficient hydrological and seismic data - in the past, severe earthquakes have been linked to reservoir construction
  • the potential benefits are being grossly exaggerated and have been based on inaccurate cost-benefit analysis
  • up to 1 million people will be displaced and will need re-settlement. The development of the largest dam, the Sardar Sarovar (see Figure1), alone is estimated to result in the displacement of 32,000 people. It will affect the livelihoods of thousands of others.
  • the riverine ecosystem will be severely affected by the construction of the dams

The Maheshwar Dam
One of the 30 large dams in the Narmada Valley Development Project, the Maheshwar dam has been particularly controversial. It is India's first privately financed dam, a decision made necessary by the withdrawal of support from developmental organisations following massive public protests to the Narmada Project as a whole. With an estimated construction cost of $US 530 million, it is planned to generate 400 Megawatts of energy.

The dam and subsequent flooding of the valley upstream is estimated to displace 35,000 people and submerge 61 villages. Some of these people make their living from the river, fishing or extracting silt and sand - they are landless and look likely to receive no compensation. Whilst the law requires land-for land rehabilitation, critics report that some people have been offered cash alternatives because there is insufficient land available (some 100,000 are still awaiting resettlement in the state following earlier dam projects!).

Up until 1998, despite work having already commenced on the dam construction, there had been no local participation in the planning process. In 1998 a Task Force was set up consisting of representatives from the affected peoples, planners, and the dam builders. Doubts were expressed about the cost-benefit analysis (the cost of resettlement had been massively underestimated) and the Task Force recommended suspension of work on the dam. The recommendation was ignored by the Madhya Pradesh government. A report published by the German NGO Urgewald in 1999, following a study of the project, concluded that "if compensation at replacement value would be undertakenthe project would very likely not be economically viable".

Following the publication of the report, two German backers (Bayernwerk and V.E.W.) pulled out on social and environmental grounds. Whilst there are still some foreign companies involved, including the German company Siemens, it seems increasingly likely that investment will need to come from within India itself.

Meanwhile the protests continue. They have taken the form of mass rallies (one involved 12,000 people) and sit-ins (dharnas), some of which have resulted in violent actions by the police, such as teargassing. With the huge upwelling of local and international concern, the future of the project is by no means secure and it remains a risky proposition for investors.

Extended Activities and Internet Research
The Narmada Project is very much a current issue and details are changing all the time. Whilst this case study gives you a good grounding of the 'story so far', you should conduct your own research using the internet to update this study.

To start with, try www.narmada.org. There is a great deal of information here and some useful links to other organisations (e.g. International Rivers Network - www.irn.org) and to newspaper articles.

Produce a report about the project, considering the potential benefits and the reasons why so many people are against the project. Try to be as objective as you can. Many of the organisations you will come across, such as the Narmada Bachio Andolan (NBA) have a particular point of view. Try to track down the Indian government's position. What do you think should be done?

Figure 1


Map reproduced with kind permission of International Rivers Network
http://www.irn.org/programs/narmada/map.html

Figure 2

The failure of large scale dam projects
'Large dams imply large budgets for related projects leading to large profits for a small group of people. A mass of research shows that even on purely technical grounds, large dams have been colossal failures. While they have delivered only a fraction of their purported benefits, they have had an extremely devastating effect on the riverine ecosystem and have rendered destitute large numbers of people, whose entire sustenance and modes of living are centred around the river. For no large dam in India has it been shown that the resettled people have been provided with just compensation and rehabilitation.'
The International Rivers Network


 

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