Environmental Values and Policy: A state-level perspective on Development Dilemmas from India

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Neal Lee Barnett
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1 Environmental Values and Policy: A state-level perspective on Development Dilemmas from India Pranab Mukhopadhyay Goa University Valuing & Accounting for the Environment in Asia-Pacific United Nations Conference Centre, Bangkok, Thailand 8th - 10th October, 2013 South Asian Network for Development and Environmental Economics Kathmandu, Nepal

2 About Goa Goa India Size (Land Area sq kms) ,973,190 Population in millions (2011 census) 1,457,723 1,210,193,422 Per capita Income (Rs. NSDP and NDP Current Prices) ( ) pa Rs 163,404 Rs 60,972 Female Literacy Rate (2011) 82 % 65% Infant Mortality Rate (2011)*** Sex ratio (female per 1000 male)

3 Structure of Goan Economy Sectoral Shares in NSDP at Constant prices ( prices) Primary Secondary Tertiary Source: CSO, Indiastat.com and Economic Survey Goa (various years)

4 Goa: High income but resource-dependent Most important sectors depend on nature s bounty Mining Exhaustible resource Marine Renewable & sustainable if managed well Recreational Beach tourism Livelihood -- Fishing

5 Public Finances 70 Revenue Receipts (percentage shares) Tax revenue/total receipts Non Tax revenue (excluding GrantsIn Aid)/Total receipts Non-Ferr. Mining and Metal Ind/Total receipts Tourism/Total receipts

6 Legislations related to environment in Goa Relating to wild life, forest, air, water, bio diversity, coasts: (i) Wild Life (Protection) Act, 1972 (ii) Water (Prevention & Control of Pollution) Act,1974 (iii-a) Forest (Conservation) Act, 1980 (iii-b) National Forest Policy, 1988 (iv) Air (Prevention & Control of Pollution) Act, 1981 (v) Environment (Protection) Act, 1986 (vi) Biological Diversity Act, 2002 (vii) Coastal Zone Regulation Notification, 2011

7 Mining Area The Western Ghats -- a biodiversity hotspot. A UN Natural Heritage site Dense tropical forests, One National Park and 6 wildlife sanctuaries (FSI, 2009). Watershed for the important water bodies such as Kushawati, Kalay, Uguem, Khandepar, Advoi, Bicholim, Zuari, and Mandovi rivers.

8 Social Cost & Benefit Analysis Social costs of mining loss of ecosystem services Social benefits -- Value of minerals (both export and other processing values), employment generation, etc.

9 CBA of Mining Mining outweighs the losses from forest loss. Net gain from mining is Rs 18,422 million per year (NCAER 2010) (1 USD = Rs 54 approx.) Opportunity cost of disallowing mining is Rs 14,449 crores measured as net present value (NPV) (NCAER, 2010: 50). Deforestation cost due to mining is estimated to be worth Rs 4,680 million (at prices), which amounts to Rs 0.16 million per ha of forest area.

10 Amounts of Compensation Payable for Goa s forests as per SC mandated values Type of forests Amount (Rs) per hectare a Area (sq. kms) b In Rs (billion) c Very Dense Forest 1,043, Dense Forest Open Forest Total Source: a : SC (2008); b : FSI (2009) ; c : Values of a multiplied by b 939, , [i] The area under forests stated by FSI (2009) differs from the figure of 1424 sq km used by NCAER (2010) in their calculations.

11 Comparative TEV (Rs Million) of Goa s forests valued at prices IRADE (2008:88) NCAER (2010: 42) SC (2008) GAISP Values Total Economic Value Economic Value Total Economic Value Economic Higher Lower Value Bound Bound 54,540 6,770 40,670 5, , , ,840

12 Goa s Mineral Reserves 712 MT of Iron ore reserves Geological Survey of India (GSI), as on (IBM, 2009: 47_2) of which: 268 Mt is proven reserves, 190 MT (Probable) 254 MT (Possible).

13 Current stocks In , Goa produced 33 MT of iron oreestimated value Rs 38.8 billion (IBM, 2009) If 712 MT is extracted at 33 MT/year, the resource would exhaust in 21 years. Since 2/3 of these reserves are probable or possible, the proven reserves will exhaust in 8-9 years.

14 Employment claim in Mining 75,000 workers of the state s workforce of 582,274 in (NCAER 2010). Is this an over-estimate? 6,573 (Economic census) 21,872 (Basu, 2011)

15 Mining-affected locals begin hunger strike TNN, 9 March, 06:18am IST MARGAO: Rallying under the banner of Mission Bypass', residents of Curchorem, Sanvordem, Quepem, Sanguem and surrounding areas have launched satyagraha' a Gandhian mode of protest to press for their demand for a bypass road exclusively for mining trucks. Protesting the government's "indifferent attitude" to their demand, protesting residents on Sunday began a sit-in indefinite chain hunger strike in front of the Curchorem Curcora Municipal Council (CCMC) building. Hundreds protest against mining traffic in Bicholim: Block bridge, assault truck driver and puncture tyres BICHOLIM, JAN 28 Hundreds of people blocked the Bicholim Bridge on Thursday while protesting against mining traffic across the bridge. Incidentally, they also assaulted a truck driver and damaged his vehicle when he was trying to cross over the bridge. The traffic was also paralysed along the route for over four hours.

16 Thank you Population in millions (2011 census) Goa Goa India 1,457,723 1,457,723 1,210,193,422 Per capita Income Rs 163,404 Rs 117,602 Rs 60,972 (Current Prices) (NSDP (NSDP (NDP ( ) pa Unadjusted) adjusted) Unadjusted) Female Literacy Rate (2011) Infant Mortality Rate (2011)*** Sex ratio (female per 1000 male) % 82 % 65%

STATE OF ENVIRONMENT ATLAS OF INDIA-OUTLINE

STATE OF ENVIRONMENT ATLAS OF INDIA-OUTLINE Sl. No. Maps Themes Features Data Source I: GENERAL CHARACTERISTICS I. Administrative Divisions International, States, Districts Survey of Boundaries with State