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23/25, 8'" Cross, Vi9nan Na9ar,
New Thippasandm Post} Batl9a(ore. 5600i5
TeL +91·80-25244988/ 253 44149, rax : 91-80-25J445�17
e-mail: injo@equitabCetourism.or9
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Our Note ...
Dear Reader,
We are happy to share with you the Attached to loans from these two institutions
DocUPDATE for the period January-September pose a serious threat to national sovereignty and
2004. decision-making capaci t y in borrowing
countries. It is now widely accepted across the
January 2004 marks the starting of the World developing world (and by the institutions
Social Forum 2004, which is a people's attempt at themselves) that the IMF has failed in its stated'
a global citizens forum. It seeks to offer 'open mission of ensuring financial stability, and the
spaces' where there is a confluence of values and World Bank has failed in its stated mission of
a noncombative ethos. It was a rallying point for alleviating poverty and promoting economic
all tourism interventions groups across the development. While local and national
world in highlighting the impacts of tourism populations bear the brunt of these failures in
development on local communities, exchanging the form of increased debt burdens, job losses,
experiences, learning from each other, forging and reduced access to food, natural resources
alliances and engaging in global collective and essential services, the IMF and World Bank
actfons. As an outcome of these deliberations continue their operations with immunity from
and a tourism activists strategy meeting, the national and international laws.
"Global Forum of Tourism Activists" was
formed to act as a watchdog on tourism practices India is a preferred client of the World Bank
and development. In the \VSF, tourism activists group of institutions and the Asian
around the world posed the critical question, Development bank (ADB) for financial
"Who really benefits from Tourism?" Because of operations and policy advice. The ADB, which is
this clarion call by tourism interventions groups a regional, multilateral financial institution, is
to the travel trade, governments and consulting formed in the image of the World Bank. The
firms, WTO-OMT responded to the world in World Bank group is now poised to increase
ITB-Berlin in March 2004 with the slogan lending to the country by US $ 1 billion over the
"Tourism Enriches Individuals, Families, next four years, from raising the threshold for
Communities, and everybody in the World!" lending now to a whopping US $ 3 billion per
Engaging with this kind of response will indeed
year. On its part, the ADB has now increased its
be a driving force for all tourism interventions
lending to India to US $ 6.47 bil1�oo for the period
groups in near future with this question: Does 2005-07 with special emphasis on agriculture
tourism tnlly enrich?
and infrastructure in the poor states Their
)
operations in India now include attempts to
2004 marks the 60'" year of the existence of the
shape fiscal management policy, revenue
International Monetary Fund (IMF) and the
collection and management, and sectoral
World Bank. The wealthiest developed
reforms in agriculture, forestry, education,
countries and their corporate lobbies back these
health, roads/highways, energy, and water such
institutions. The financial and economic policies
as introduction of privatization.
promoted by these institutions have deepened
poverty, inequality and economic insecurity in
There have been important changes taking place
every developing country where they operate.
The IMF and World Bank have contributed little, in the arena of international trade negotiations as
to national or local development, and the policy well. The Indian Government has in t:Q.e past six
conditions months initiated
discussions with a wide range of developed and research agencies that have been assigned with
developing countries for entering into more the task of carrying out a feasibility study. The
bilateral and regional trade agreements. While Indo-Thai FT A was signed by the Indian Prime
the Free Trade Agreements (FTAs) already in Minister two weeks after entering office in spite
force are only three: the Indo-Sri Lanka, Indo­ o f the quasi-Government research body,
Nepal and recently signed Indo-Thai, the ones in NCAE R ( National Council for Applied
the pipeline include agreements with the Economic Research), warning the government
ASEAN (Association of South East Asian against doing so. Many of these agreements have
Nations), Singapore, the Gulf Cooperative an explicit services, and within it explicit
as these
Council, South African Customs Uni.on,
tourism components in them, need to be
MERCOSUR (Brazil, Argentina, Uruguay,
thoroughly analysed. The services trade
Paraguay), CARLCOM (Caribbean Community)
agreement being negotiated with USA focuses
and the USA. The trend holds good for most of
on the Business Process Outsourcing sector, but
the developing world, as countries are hesitant
it is least appreciated that there are too many
to make hasty commitments under the GATS
other kinds of services in the Indian economy
(because of its multilateral framework) and
that are not ready to face competition. In the final
t herefore prefer a bilateral method of
analysis, developing countries need to
negotiating for gains in trade. Intuitively, this
consolidate their internal political and economic
method appears safer for a country, after it has
carried out impact studies and discussions with structures before being in a position to support

the relevant Ministers (in the case of India the and benefit from global trade.
Ministry of Commerce and Industry and the
Ministry of External Affairs). Developing The Finance M i n is t er P.C h i d a m b a r a m

countries may sign agreements or commence presented, Union budget o f India for 2004 - 05 in
discussions with other developing countries and a popular tune. There are proposals for tax
satisfy theorists who profess the South-South breaks for farm sector and lower middle class.
trade route out of poverty. But there is an equal He is trying to stick with the Common Minimum
number of agreements, if not more, between Programme of the coalition government. Mr.
developing and developed countries, where the Chidambaram himself described the budget that
trade is bound to be unequal and capable of �fully faithful to the Common Minimum programme
perpetuating such inequalities because of the . (CMP) of the United Progressive Alliance (UPA)
bargaining power of the developed countries. government. This budget is probably called a
'
The NAFTA and the resultant impact in Mexico 'political budget 'targeted p rimarily at the lower
is a significant case in point. It is also worth middle class, farmers and the. left. Despite
noting that when a country enters into bilateral political constraints Chidambanim displayed
trade with countries in almost every his dexterity by incorporating some elements of
geographical region in the world the very reforms like raising Foreign Direct Investment
purpose of signing a bilateral agreement is
(FDI) caps in telecom, civil aviation and
defeated as this only feeds into the process of
insurance. UPA's first budget clearly signals a
multilateral liberalization. The method through
major change of economic and political
which any of these agreements is researched into
direction. The government has redefined the
is not in the least democratic. The non­
rule of the game. From 'India shining', they have
consultative nature of decision-making is a
moved to 'Bharath shining'. This shift is not just
result of the unequal distribution of political
in policy emphasiS but also in political economy
power w it h i n the countries. Political
terms. The finance minister has identified
motivations behind such associations become
tourism sector as his focus area and this shows
evident in cases where agreements are signed
that tourism is considered an important activity
after least negotiations with domestic
by the government. The new schemes and and proportions over the last decade. Every day
benefits to civil aviation, modernization of children are trafficked across the country and
airports and the development of major through out South Asia, with India being the

convention centres are supportive steps to the source country as well a transit and destination
point. They are being trafficked for prostitution,
industry and help to promote tourism. Rs. 500
labour, entertainment and sports, pornography
crores has been allocated to the tourism ministry
and sex tourism, illegal activities like begging,
for the current fiscal (Last year it was Rs.350
organ trade, for and through marriage and
crores) adoption. Even though Child Rights is a global
concern today among most countries, there is a
It may seem that amusement park owners are all continuous and blatant violation of the rights of
set to take entertainment- starved Indians, children that goes unrecognized and un
literally for a ride. The Indian amusement park addressed in the form of trafficking. Tourism as
sector is growing over 100 percentages every an industry is particularly insensitive of local
year. Number of new players is ready to take the community needs. Denial of access to resources,
land accession, change in land patterns and loss
plunge, while existing ones are set to expand.
of traditional and sustainable livelihoods are
According to the 11th Quarterly Survey of
impacts that local communities have to face in
Projects Investments (30 June 2003) conducted
return for the setting up of a world class resort or
by Projects Today, the amusement park industry
hotel in their area. The economic vulnerability
had 258 projects worth Rs.32, 795 crore in created by the tourism industry makes option
various stages of planning and implementation. such as trafficking an option, which is difficult to
The private investments both by the Indian and ignore.
foreign companies is high in this industry.
Government owned p r o j ects would b e Eco-tourism is being promoted vigorously by
eventually given to the private investors partly the tourism industry and by the central and state
governments. The implications of these
or wholly. The whole gamut of the investment in
activities are reflected in the tourism policies at
this sector consists of developing entertainment,
international, national and state levels. The focus
amusement parks, theme parks, golf courses and
of all tourism activity is shifting to eco-tourism.
multiplexes. Between 2001-04, the industry is
What is happening in the name of eco-tourism is
expected to grow three-fold in terms of both a matter of great concern. There are serious
number of parks and total investment intake. threats to our physical and s,?cio cultural
environment in general and our flora and fauna
Health and medical tourism is perceived as one of in particular. There are also growing violations
the fastest growing segments in marketing of environmental legislation and norms 'clearly
'Destination India' today. While this area has so far
reflect the concern of our governments,. policy
been relatively unexplored, we now find that not
makers and planners towards protecting our
only the ministry of tourism, government of India,
biodiversity and environment. However, the
but also the various state tourism boards and even
the private sector consisting of travel agents, tour picture is not too grim. Supreme Court of India,
op e r a t o r s, ho t e l companies and other with its various orders has shown that
accommodation providers are all eying health and environmental concerns are of prime
medical tourism as a segment with tremendous importance.
potential for future growth and medical tourism
-
could earn more than $1 billion annuall y. Karnataka Governments strategy is only to
attract tourists, therefore they are refusing to be
Although trafficking of children is not a new confined by the stringent coastal regulations
phenomenon, it has taken on alarming forms imposed by the central
government, and they are offering 44 locations the hidden treasures of Tamil Nadu and
along the coasts for private investors to start promoting those areas. While the government
tourist facilities. In these places the tourism looks tourism merely as industry that
department has identified the land that is contributes for the state's economic growth it has
available for investors with the ownership lying totally ignored the local community and their
with itself, revenue or forest departments. In livelihoods. For instance in Mahabalipuram the
some places, investors scout for private land, but state as well as the central government has
the department has indicated the potential for involved in creating infrastructure facilities has
setting up particular type of activities. Now the ignored the people's welfare and their
Government is emphasizing on the unexplored participation in the decision making and there
and unknown qualities of its beaches, their seems to be a push towards getting the investors
unspoiled condition making them unique and to undertake tourism projects in Tamil Nadu.
there by making them increase in scope of
commercial development. Keeping in mind the
It seems as though tourism is being replanned to
current scenario only promotion of tourism,
give itself a new dimension. We in EQUATIONS
infrastructure with the help of private public
are trying to analyse the trends and debates that
partnership with no proper guidelines with
are emerging from the tourism and related
which the private entrepreneurs must work and
development area. This edition covers materials
by allowing free hand end up in the lopsided
from Newspapers, Weakly, MagaZines, Journals
development of tourism with deep adverse
and Books. ""'hUe compiling this edition, we
impacts.
have also looked at information available on the
web and that we receive through list serves via e­
Tourism in Tamil Nadu has received a major
mail. The selected information is indicative of
thrust in the last few years. The systematic and
trends in tourism development, especially in
comprehensive efforts taken by the state
India. Issues are presented under headings
government in 2003-2004 has enabled Tamil
based on the sections in our classification code.
Nadu make its presence strongly felt in the
International arena o f tourism sector. Apart from tourism issues, some sections deal

"Enchanting Tamil Nadu Experience Yourself" with issues related to development in general.
campaign, which was launched in 2003-04, has
been carried in an aggressive mode. The Tamil A t this point, the team would like to
Nadu state government has fixed a target to acknowledge the contribtition of Ms. Nina Rao,
increase the tourist inflow by 10 to 12% from the Delhi, Bailancho Saad, Goa, CAG (Citizens,
present level of 7 to 9%. At the same time there is p
Consumer and Civic Action Grou ), Chennai for
an increase in the budget allocation for tourism providing us with regional news clippings and
as 30.35 crores in 2004-2005 from the earlier statewide reports to understand, �alyse trends
budget allocation of Rs 5 crores in 2000-2001. The at the state level and to engage with debates. We
increase in the tourist's arrival has made the state request feedback from our readers about this
government to develop the infrastructure document, its information and features you
facilities as well as identifying would like to share with us.
EQUATIONS Team
Contents.....
A. TOURISM AND TOURISM ALTERNATIVES..................................................................... 1
A 00 Tourism, Travel (General) ....................................................... .............................................................. 1
A 10 Tourism and Development .. ............... . ................................................................................................. 3
A 31 Alternative Development Ideas, sustainable Development .
........ ......... . ......... . ............................... 5
A 80 Tourism Research/Education .............................................................................................................. 5
8. TOURISM POLICY AN D TOURISM DEVELOPMENT ..... ................... .. ........ .... ........................6 . . .

B 01 Special Tourism Areas ......................................... . . . .................. . ..... .. .......................... ...... . . .................... 6


B 20 Tourism Legislation, Rules, Regulations, Acts ................. . .... .
... ... .................................... . ................. 6
B 30 ITDC .......................................................................................................................................................... 6
B 32 Tourism Facilities, Transport, accommodation . . . ..... .......................... . . ....... ....................................... 6
B 60 International Tourism Issues : ..................................................................................... 7
...........................

B 63 International Network. . ................ 7


..........................................................................................................

C. TOURISM ECONOMY, INDIAN ECONOMY . ... .... ...... ............ .. .................. ...... .......... ................ 7 . . .. .

coo Tourism Economy and Tourism Infrastructure . 7 ............................ ....................... .............................

C 03 Tourism Finance ..................................................................... ............... . . ....... . ..................... .................. 8


C 10 Indian Economy . .
.................................. .......................... ......... . . . .. .
. .
. ...... .................................. .......... . 8
...

C 11 Liberalization Policies . . .............. ... ........................................ ............................................................... 10


C 23 Railways . .
...................................... .......... . . . . ..................................................... ........... . . ..................... . 14
...

C 23 a Palace on Wheels and Royal Indian . ................................................. .... . ....... . ...... .. ......................... 15
C 24 Civil Aviation . .. . . . ... ..
.......... .. .. ..
......... . .. . . . . ......... ........... ...... ............. . .
.. .. . . . .. .... . ................ ......... .. ........... 15
C 30 Tourism Industry . .. ..
.......... . . .
..... .......... ..... . . ........ .. .... ......................... ... . ... ........ . ................. .................. 17
C 41 Labour Policy, Legislation, Laws and Implementation .................... . ..... .. . . .. . ...... .. ....... . .... . ............ 17
CO Companies ....... . .
.. . . ........... . ..................... . .
... .................. ...... ........... . . .. .
... ................... . ....... ....... .. ........ . .... 18
D TOURISM PROMOTION AND TYPES OF TOURISM ..... .. ............. .. ...................... .... ... .......... ...1.8 .

D 00 Tourism Volumes and Patterns . . . . . 18


...................... ............................................... ..... ................ ......... ..

D 11 Festivals-India . . . . . ..
................. ................... . . . . .. .... .19
... ................................... .. . ............ ........ .... ... ... ..... .....

D 20 b Recreation and Theme Parks . . . . . . . .... . .. ..


. . . ... .. . .. .. 20
. .. .. .. ............................ ............................ ..... ... .. ... ..

D 20 d Heritage Tourism . . . ... ......... ......... .............. . .......................................... . . ...... . .. ............. .. .... . . .. ...... . .... 20
D 20 e Pilgrimage Tourism . ....... .............. . ............... . ....... . ..... ........................ . ....... .. ....... . ............ .. ...
. ........ . 21
.

D 20 f Health Tourism .. . ...... ......... .................. . ..... .. ................. ....... . ............... . ...... . ....... . ................. . .......... . 21
.

D 20 g Rural Tourism . .......................... .. .


................. .......... ..................... ...... . . .. ..... . ..... ..
. .............................. 22
D 20 h Golf Tourism . .
........... ................... ....... .. ... . .... .. .................................... .. . . ........................................... 23
D 20 i Eco Tourism/Wildlife Tourism ............... . ..................................... ................ . .... . .......... f ............ .... 23 .

E TOURISM, SOCIETY AND IMPACTS .............. ... ....................... .. ....... .......................... ........ ..... . � ..25 .

E 01 Environmental Impact of Tourism ................................................................................................. ;...25


E 01 a Environmental Laws and Policy . . . ... ........... . .......................................... . . ....... . . . ............. . .... .. .......... 25
E 01 b Environmental Issues .................................................................................................................... :::.26
E 01 d Wildlife ... .
......... ..
............. ........ . .
.......... .. .. . . ..
..... . . .
..................... . 27 ...... ........ .. . . ................. ... .. ............. .....

E 41 Prostitution and Trafficking (General) . . . . .. . .


.... . .
............ .. ... . 28 ....... . . . . .... . ..... ............. ............. .............. .

E 42 Child Prostitution/ Child Sex Abuse . . . 28


........................................................ ............................ ...... .....

E 71 National parks and Sanctuaries (General) . .. . . . . .


....... ....... , .......31.... ...... .. ................. ...... ........................

G COASTAL REGIONS ..................................................................................................................... : ..... 31.


G 10 CRZ Acts, Rules, Laws, Violations (General). . . .. . . .
........ 31
............. ........ .. ........... ............... ....... ...........

G 101 Kerala . . .. .
................. ....... . . . . . .
...... ........ ... ............ . .. . . .. .
.. . :.......32
............ ... .......................... . . .. . ............... ....

G 40 Industries on the Coasts (General) . .. .


......... . . .. .. . : .....32
. .................................. ........ .. ..... .. .................. ....

.
1

"�I
--:\:,
G 40 K Karnataka . . .. .. ..... . ...
.... . . ..... . . .. .......... . .
...... .. .. . ....... . ... ............. .. ........ ... ............ . . ....
. .... ... ... ....... . .35
... -
G 90 Coastal Tourism ....... . . ... ...... .. .. ... .... . .. . . .
.. . . ..
.. ..... .. .... . .............. ... ... . . .. . ...... . ......... . .... ..... . .
...
·
. ................. . 35 ..

H HILL AND MOUNTAIN REGIONS ................. ........................... ........... ..................... ...................36


.
. . . .

H 00 Hill and Mountain Regions of India .................................................................................................3 6


H 30 Himalayas (General) ............................................................................................................................36
K KARNATAKA . . .. . , ....................................................................................................................... 37
... .... . .. .....

K 10 Policy, Economy ...................................................................................................................................37


K 12 Infrastructure, Power . . .. . ..
.. . ..
...... .. . . .. . .. . ....... . .. . .. .. ... 37
............. ........ ...... ....... . .. ................. .......... ..... .. . . ... .

K 33 Child Labour .. .. . . . .
............ .. .
. . . . . . .. . .
.. . ... ... ..
......... ... . ..
............ 38 .......... ... . .... .... .. . .... ........ ...... ......... . ...... . . .....

K 50 Tourism/Tourism issues in Karnataka . .. . .. .. . .. . . .. ... 38


................ ......... ...... ....... .. ........ .... . ....... .. ... ..... .....

K 51 Coastal Tourism.. . ... . .. . ....


. ..
. . . . ...
. ...... .. .. .. . ... . ..
.. ......... .... .. .. . . ..
. . 39
...... ...... .. ..... ..... .. ... .. .. .... .. ..... .. .. ..... .... . ......

K 53 Heritage Tourism . . .. . .... . . . ... . . . ..


..... ...... .. . ..
.. .. . .
....... . .. . . . . . 39
.. ..... .... . .. . .. ..... . ........ . .. . ... . . .. ......... . .......... .... .. . . . .

K 59 Golf Tourism .........................................................................................................................................40


L KERALA ....... ............ .... ................. .. ...... .. .......... ........... .......... ........ ............... . ....... ..... ..... . ... .41
. . . . . . . . . . . . . . . . . .

L 00 Kerala-Land and People ......................................................................................................................41


L 10 Policy, Economy ....................................................................................................................................41
L 12 Infrastructure . . .. . . .. ... ..
. . .... . . .. . ..
. . . .
..... . .. . .
.......... . .. .
....... .. .. ..42 . ... .. . ... .. ..... . ................. ...... ............ . ......... .......

L 50 Tourism/Tourism issues in Kerala (General) ...............:...................................................................43


L 56 Wayanad ............................................................................................................................................... .43
L 58 Special Tourism Area-Bekal ................................................................................................................ 43
M TAMILNADU ........ .............. ....................... .............. ................... .................. . ... ... . ... ... ..... .. .44
. . . .. . . . . .. . .. . . .

MIl Planning, Policy ...................................................................................................................................44


M 57 a Ooty ....................................................................................................................................................44
M 57 b Kodaikanal .... .. . . . . .
.. . . . . ............... . ........ .. .... . .. . .
. .. ... ...... . .... .. . ....... . ....... . .............. .. ...... .. . ... .... ... .... ... . .44.. ..

N ANDHRA PRADESH ..........................................................................................................................45


N 00 Tourism Related . . . . . .. .
.... . .
.... ... ..... .. ..
............ . . . .. .. .. ..
......... . . 45 . . .. ........ ... .................... . .. .. ........ . .... . . ... . ..... .. .

P GOA ....................... ................ ............................................................................................ . . . ....... . . ............. .46


P 00 Tourism related . . .. ....... . ...... . .... . . .
... ... ...... . ...... . ..
. ................. ....... .. . .. .. . . .. .... ... . . . ..... .
.. .. ... .. . . . . . . . ........ .. .... . 46
Q NORTH EASTERN STATES ... ............................ ............... .. ....... ... ..... ......... ................ ............. 48
. . . . . . . .. .

Q 00 Tourism related . . .. . . .. .. ... .. .. . . .. . .


.... ........ . .. ...... . .. . . . . . . . .48
.... .. .................. .. .. ... .. ... ... . ....... . . . . ... . ...... .. . .. . . .. . ... . . .

S OTHER STATES ....... ........... ... ................ .. ... ...... ....................... ..... .... ........... ........... ... ... .....49
. . .. . .. . . . . . . .. . ..

S 10 Eastern India-Orissa, West BengaL . . .. . . . .. . .. ... ... . . .. . ..+9


... ................... . . ... ............ ....... .. . ...... ....... . . ....... . .. ..

S 20 North India-UP, Bihar, Uttaranchal . ... .. . . . . .... .. . � . . ...... ... . ... -1-9
.............. .... . .. ......... .. ...... .... . . ..... .... ...... . . .. .. .

S 21 Jammu & Kashmir ................................................................................................: .. : .............................5!


S 30 Western India-Rajasthan .. . .. . . . . . .. ... .
.... . ........ . .. ., ..................5 t
........ . .......... ...... .......... ... .. .. .. .. . ..... . . ..... . ... ...

T FOREIGN COUNTRIES ....................................................................................................:.................52


TOO International Tourism Volumes and Patterns . . . . . .... . .,"' ................52 .. .... . ... . . ..... ...... ............. ...... .. ........

T 10 South Asia ..............................................................................................................................................52


T 20 South East Asia ......................................................................................................................................52
T 30 Communist Asia ................................................................................................................................... 53
T 60 Europe . . . .
...... . . .. . . . .
........ .... . .. . .
... ..... .. . . .
...... . . ... ....
... . . . ... ..53....... ..... . .. ............ . .. . .. .. . .. .. .. .......... .... ... . ..............

T 80 Caribbean/Central and Latin America . . . . . ....... . . . .... . . . . . . . . . . 5-1- .... . .... .... ........ .......... . . . . .. . . .... ..... . . . .... .. . . . . .. .

U INTERNATIONAL ECONOMy...... . ...................... ... . ........... .. ....... .. .. .. .. .......... ......... .. ........ ..... 55
. . . . . .. . .. . . .. . .. . . .

U 00 International Economy, Globalization ..............................................................................................55


U 30 GATT/World Trade Organization (vVTO) .........................................................., ............................57
U 40 International Aid (Bilateral) . . . . . . ...... ..
. . ........ . . .... .
. . . . ................ .. . . .. .. .. . . ....... .. ...... .. . ...
....... .. · ..... . ... .... 58
.... . .

U 41 'vVorld Bank . . .. . .
........... . .. ... ... . .. ...... . ... . .
.. . .... . ...... .......... .. ... . ....... .
. . . . ............... . ..... . .... ..
. ... .......... ..... . . . 59
. .. . ..
U 4 2 International Monitoring Fund (IMF) .......................... ........................... . . .. ..
. ....... . .......... . ..... ... ........ 62
U 43 Asian Development Bank (ADB) . . .. ... . ...... ......................................................................................... 62
X CULTURE AND SOCiETY ..................................................................................................................63
X 11 Social/Political System ........................................................................................................................63
X 12 Tribes and Development . .
................. . ..................... .
......... .................. . . ... 64
...........................................

X 22 a Right to Information .
..................... . . .
...... . ......................................................... . ... 67 ..... .................. ......

X 31 Status of Women (General) .................................................................................................................68


X 34 Women and Development ..................................................................................................................68
Z MISCELLANEOUS ..............................................................................................................................69
Z 10NGOS ....... . .......................................... . .......... . ................ . .......................................................................
.
69
ANNEXURE .............................................................................................................................................. 70
Annexure 1: Critique of EQUATIONS on Draft National Environment Policy 2004 70 .......... . ..............

, Annexure 2: Critique of EQUATIONS on Draft National Tribal policy 2004 . 70


,
........................... ..........

Annexure 3: President A P J Abdul Kalam's Vision of Developed India . . . 75


1 Annexure 4: Biosphere in peril : Sahara Parivar's Sunderban dreams . . . . . 83 .....
.................... .............. . . .

....................... . . ........
.....

........

Annexure 5: An India-US FTA: .Free Trade for America? ......................................................................86


Annexure 6: Incoming Materials Ganuary September 2004) . . 92
..... ..... ....................................................

Annexure 7: EQUATIONS Publications 2004 . . . ................. ... ....................................................... . ............ 94


Indian Tourism: Current Issues... . . . . . . . ... . . .. ............. . .. .. .... ..
. . . . . . . . . . ... .. ......... . ... . .
.. ..... . .. . 95
. .

What we do ...................................................................................................................................................96
Sources Index .
........ ..... .......... ... . ................. . ......................... . . . ...................... . .
. .... . . ... . . . . ................... . . ........... .97

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'eO �
A TOURIS" "'.TOURISWIALTEfJNATIVES

A 00 Tourism, Travel (General) sales as more. as more visit city, B loomberg


Indian tourist is evolving from the shopping London, BL.C, 1 7.8.04, A 00)
holidays in duty-free Singapore and Dubai, to
the package tours of London, Paris and Tourism: The Growth Multiplier: N.K. Singh
have been invited to speak at the 40th Annual
Switzerland, the Indian globetrotter seems to be
Convention of the Federation of Hotel and
acquiring a taste for destinations known better
Restaurant Associations of India on the broad
for art, culture, food and, some adventure. They theme of "India Tourism: The Way Ahead" . This
are all hoping to gain from the generous dollar is for the first time that the convention is being
spends of the Indian tourist who has emerg�d as held outside India and it was not clear whether
amongst the biggest spenders on holiday the young, progressive Vivek Nair, President of
t h e association,
abroad.
had chosen Dubai as a
closest venue t o t h e
The Spanish tourism board, for instance, has
mainland for accommod
estimated that the Indian tourist spends up to ating all the delegates in
euro 568 (Rs 32,000) on a visit, which was second view of the r o o m
only to Japan for the Asian nations. And, while crunch in India, or
Indians may not yet be flocking to Spain, one of because this represents
a genuine effort to seek global perceptions. In
Europe's most popular destinations with 52.4
the old days, religious tourism was popular, but
million visitors each year. The Spanish tourism
Dubai has now proved that tourism itself can
board has identified India as one of its emerging become a religion! There is an old proverb that
markets along with Australia, New Zealand, all that glitters is not gold. However, about
and the Baltic nations. Last year, 39,000 Indians Dubai it can truly be said that all that glitters is
visited Austria, which attracts about 28 million gold looking at the ornate style of its hotels, the
dazzling sheen in its jewellery shops, the opulent
visitors annually. (Indian tourists turn to new
life-styles of the rich and the city becoming a hub
destinations, Tunia Cherian George, BL.B,
for econOII'ic activity and tourism.
2.3.04, A 00)

Central London retail sales rose 3.3 per cent in Dubai, as the participants at the convention will
July from the same month last year, outpacing realise, has merely offered security and quality
growth in the nation as a whole, as more tourists infrastructure to permit freedom in human
visited the capital and discounts lured ingenuity to create a 'meaningful hub of
customers. The increase reported by the London economic activity. Enticing over six million
tourists in a short time with an anibitious target
Retail Consortium followed an annual drop of
of 10-15 million over the next few years, creating
0.4 per cent in the previous month. Nationally, a world-class airport hub and buikiing satellite
sales growth eased to 1.8 per cent in July, the cities by reclamation I"""""':" �=:---:-::-:
_ :" _ :" __:--""
slowest pace in five months, British Retail o f t h e s e a ,
Consortium data showed last week. Growth in e nVi r o n m e n t a l l y
tourism was led' by visitors from Eastern damaging as an elitist
activity for the rich
Europe, China and the Middle East, the LRC
and wealthy tha t
said. Beauty products, including fragrances sold m i g h t be, speaks
well, as did handbags and designer accessories. volumes about an
(London retailers boost July innovative L;";';Y<:S"'�����.J
economic strategy.
There is a lot to be learnt from Dubai. Enticing
*
� ' \
To make a co-ordinated ettort between central
and state governments. Central government
over 6 mn tourists in a short time, creating a grants tax and other concessions only to be
world-class airport hub and building satellite nullified by state governments. The proposal of
cities by reclamation of the sea, speaks volumes the tourism ministry to bring tourism under the
about an innovative economic strategy Concurrent list in the Constitution and to create
* As a means to foster equity. There are few a National Tourism Promotion Board under the
economic activities where the income percolates Prime Minister needs to be actively pursued.
so readily to the average man from being *Fiscal policies need to be aligned with the rates
engaged in vegetable cultivation, maintaining . prevalent in other competing destinations. A lot
food supply chain, carrying out laundry has been done recently but fine-tuning is
functions, not to speak of ensuring regular necessary and there is clamour to secure
supplies of newspapers and periodicals. This is infrastructure status for the hotel industry.
particularly so in smaller and medium cities * Access to affordable credit, particularly by
where many of these activities are manually greenfield hotel entrepreneurs, at affordable
undertaken. cost and innovative ways for adequate equity to
* Increased tourist activity, however, brings with be raised is a challenge.
it new skills, improved practices, technological * Business cycles are part of the ongoing
improvements not to mention the diversity of economic activity. Even while the symmetry
varied cuisines and hopefully fosters greater between boom-burst cycles is making risk
tolerance even in closed societies. management more challenging, the problem of
*Finally, the symbiotic relationship between the travel and tourism industry is more serious.
business activity and tourism. Hospitality A small, exogenous event, like bird flu, a SARS
facilities attract investors in making business virus, a terrorist attack or a local communal
decisions while the converse is also true; the tension can destroy the small and medium
Japanese do not favour India as an investment entrepreneurs. Given the special vulnerability of
destination in the absence of assured high this sector, consideration needs to be given for an
quality sushi and tempura! Insurance Stabilization Fund and arrangement
In the end, no tourism can flourish if economic for debt restructuring during the transition for
growth remains stagnant. However, if we survival of small entrepreneurs with shallower
continue to grow at 7-8%, which we hope to, packets.
* The proposed privatization of airports
tourism can be a growth engine and some of the
obvious steps include: (hopefully on track this time) and easing of
* A sustained mindset change in which tourism
restrictions on private airlines, both for domestic
is not regarded as an elitist activity for the rich and international destinations, will lhave a
and wealthy. It is rather a catalyst with positive impact. So will the exponential
.'-

m u l t ip l ier b e ne f i t s i n c l u d i n g g a i n f ul expansion of domestic tourism based on up


employment, improved income distribution and gradation of national highways, new highway
creation of wealth. connectivity, integration of rural economy
through progressive completion. of rural , ,
-
* Some mindset change has taken place, but it

has to percolate dow n to many state network roads programme.


* Finally, the young demographic profile of
g o v ernments a n d organisations w here
enthusiastic officials still find ingenious ways to India; the shifting patterns of consumption,
redistribution of time between work and leisure,
tax the .sector further or making availability of
creates new opportunities for .exponential
land onerous and unaffordable.
expansion of domestic travel.

I
* The Tourism Policy 2002 remains significantly A 10 Tourism and Development
unimplemented. We require a bolder vision of If there's one state on which nature has not
aiming at 10 million tourists in 3-4 years time showered her riches, it's Haryana. No lush green
yielding an employment potential for 125 mountains; no rolling rivers and streams, and
million Indians and a GDP contribution of 10- not even too hot on the religious circuit. But
12%. For these to be realized, the sector needs to undaunted by the lack of nature's bounty, the
be treated with priority, continuity and state has been a "front-runner" in developing
sensitivity to handle the tourists' psychology. It highway tourism. Some of the well-known
has been said, "large part of tourism is an tourist destinations in the state are Sohna,
engagement of the ego versus the world. The Surajkund, KamaL Panipat, Gurgaon, Tilyar and
world is Hydra-headed as old as the rocks and as Myna (Rohtak), Pinj ore, Panchkula,
changing as a sea enmeshed in the rocks and the Kurukshetra, Hisar, Ballabgarh. According to a
ego wants to be pampered, arrive at places safely PHDCCI paper on Haryana, today the state has
and in time". one of the best wayside amenities and highway
To realise the more daunting vision of the motels. However, the potential to generate more
tourism sector, our policies must aim not only at investments and resultant employment
safe and timely arrival but pamper the fragile opportunities still lies untapped. The chamber
ego of the tourist, both domestic and foreign. sees vast scope for developing amusement
parks, water sports, golf clubs etc. The state
(Here, All Tha t Glitters Is Gold, FE.B, 13.9.04,
tourism department needs to identify new sites
AOO)
and should jointly take up new projects with the
private sector.
India ranks as the third largest country in tourist
arrivals into Singapore. And Indians are also the
THE HOTTEST STATES FOR BUSINESS:
highest spenders, Singapore Tourism Board's
THE OVERALL RANKINGS
(STB) deputy chairman and chief executive Lim
Neo Chian told. According to him, Indonesia Over All Perceptual Factual
State Rank
Rank Rank
and China still retain the top two slot in terms of
tourist arrivals, however, India has 'rebounded 1 Maharashtra 1 1
quickly. While information on the socio 2 Andhra 2 4
economic profile of Indian visitors is lacking, Pradesh
3 Karnataka 3 5
STB officials indicate that majority of people
traveling to Singapore from India are between 4 Gujarat 4 3
5 Tamil Nadu . 6 2
the age group of 24-34. Most travel for the
6 Punjab 5 7
purpose of leisure followed by the business
7 Haryana 8' 11
traveler. STB officials said "India is one of the
8 Madhya 10 8
fastest growing market for us. In fact, July 2004 -.

Pradesh
has been the best in our history when we
9 Rajasthan 14 12
recorded a growth of 24% over January July
10 Himachal 11 15
2002. We have had 4,50,000 Indian arrivals this
-� Pradesh
year as compared to 3 lakh arrivals in 2003.
According to STB officials, overall visitor The chamber suggested a fuulti-pronged
arrivals for 2004 (until July 2004) were 8,02,283 strategy for tourism promotion:
(marking a 12% increase over the last record of
July 2001, where the total visitor arrival was • Promote highway tourism:, Build tourist
714,944). (Indian Tourists Among Highest complexes at strategic points along the
Spenders In Singapore, FE.D, 17.9.04, A 00) highways passing through the stateo
,
,

• Develop destinations around Delhi taking full • Develop destinations around Delhi taking full
advantage of its proximity to the National advantage of its proximity to the National
Capital: tourist complexes can be setup Capital: tourist complexes can be setup around
around Delhi through promotion of leisure Delhi through promotion of leisure tourism
tourism and conferences. and conferences.
• Provide tourist facilities in all districts: Tourist • Provide tourist facilities in all districts: Tourist
facilities at the district and sub-divisional facilities at the district and sub-divisional
headquarters to cater the needs of the local headquarters to cater the needs of the local
people. people.
Interview with .Ghulam Naqshband
Ghulam Naqshband is an expert on the topography of India's inbound market, having dealt with a
variety of clients first as an employee of a leading travel company an<;i then as chairman of his own
top-end tour outfit that now has a turnover of Rs 45 crore. The SO-year old youthful innovator talks to
Narayani Ganesh about top-end tourism:

Why do you advocate promotion ofniche markets? What's wrong with mass tourism?
All tour operat6rsllIrdercut one another. So though you deal with large numbers, returns are limited.
This doesn't happen in the niche market, where you cater to the topend lUXUry segment.

What do luxury travellers seek to experience?


Once the clients reach India, inland travel is by chartered flights. If a road journey is unavoidable, they
are driven in Mercedes cars. Where necessary, escorts accompany them. At every port of arrivaL the
tour operator's representative is there to receive them and takes care of local hospitality and
sightseeing. And they stay only in Suites. The most popular destinations are Rajas than and Kerala,
besides the golden triangle - Delhi Agra-Jaipur. Most are from Europe, especially the aristocracy.
They look for gourmet dining with choice wines, luxury hotels, chartered inland flights and luxury
vehicles on the road.

How can we increase out share in upmarket tourism?


Individual tour operators have to find the right agents abroad. We need to project a good image of the
country and engage in promotional activity with the right segments. Tourist arrivals in India are now
roughly 2.75 million a year. It is nothing compared to what other, much smaller countries with fewer
attractions get tiny Singapore gets nearly seven million visitors. India's share of global tourism has
remained static at 0.3%. In ranking, we've slipped from position number 47 to 53 over the last seven
years, while our neighbors have gone ahead of us. Thirty years ago, Bangkok had Nst two tours -
floating market and temples. Today, there are so many, including new destinations like Phuket and
Pattaya. Submarine tours take you to the bottom of the sea. We need to improvise.

How about tourist spending? ....


An average tourist's out-of-room expenditure is barely $40 a day here. In Singapore, it is $250 and in
Thailand, $78.

You think backpackers don't count?


I didn't say that. Today's backpacker is tomorrow's luxury traveller. Remember, Kennedy's son came
to Delhi as a backpacker and stayed in a Paharganj hotel. If airport modernisation is going to cbst us Rs
5,000 crore, we need both up market tourism and mass tourism. Then yield per tourist will go up.
Once we give them a good experience, traffic will grow through word-of mouth publicity.
Immigration officials need to be more tourist-friendly; tourist police should be trained to help visitors
and deter touts. We want 'responsible tourism' - decent taxi services and fair prices. The government
should help" create better image through hard promotion, regulation and facilitation. The'rest are in

I
the hands of private operators.
How long does it takefor a niche destination like Chhattisgarh to capture and sustain a viable tourist
market?
In two years, since the Chhattisgarh campaign took off, awareness has been created. However, unless
there is easy accessibility and adequate infrastructure, you cannot really expect interest to translate to
footfalls. Take the Chitrakote waterfall in Chhattisgarh that is being promoted as India's Niagra. With
tented accommodation the only option currently, only a very committed traveller would make the
effort to change fl ights, endure a long road journey and then live in tents to enjoy the beauty of the
place. Promotion of a less known place -like Bastar that has great anthropological and environmen1:al
value - through ad campaigns and conferences is important, but alongside, infrastructure has to match
tourist expectations. We need to go to institutions abroad and tell them that this area - which was
inaccessible - is now open to visitors. Orissa, for instance, already has a thriving niche market as far as
tribal tourism is concerned.

(We need up market iii mass tourism., Narayani Ganes", ET. C, 28.8.04. A 10)

A 31 Alternative Development Ideas, A 80 Tourism ResearchfEducation


sustainable Development The Gargi College, therefore, is all set to
The WTI tourism sho w is being billed as a truly introduce a number of new courses in the
international industry event and showcases o ngoing academic year in collaboration with
exhibits from at least about 25 countries with both the government and private organisations,
numerous state tourism boards and airlines. based i n India and abroad. The college will
Qatar Airways is the official airline of the commence courses o n chartered Accountancy
tourism show. Addressing delegates at the (CA) in association with the Institute of
inaugural session, Maharashtra T 0 u r i s m Chartered Accountants of India (ICAI) and
Development Corporation (MTDC) managing company secretariat in collaboration with the
director Ashish Kumar Singh said that with the Institute of Company Secretariat of India. The
country's tourism showing a definite climb most sought after courses include the certificate
upwards, the state of Maharashtra is looking at courses in Travel and Tour Management in
doubling its growth figures this year and is association with the Switzerland based Kuoni
currently i n the process of implementing Academy for Travel and Tour Management and
product improvement work, looking at setting a course in media studies and Media Production
up Aurangabad as an international airport, in collaboration with the Weighan and Leigh
developmental work of the coast line right from University, Londo n. E¥\phasizing on the
Mu mbai to Goa and several marketing sustainable development, the college would kick
initiatives. off a unique course named "Enviro nment and
Development" in association with the Centre for
Deloitte Touche Tohmatsu USA tourism Environment and Education, an "Ahmedabad
worldwide head Alex Kyriakidis said that there based NGO. (Gargi College to start several new
is a huge potential for the Indian tourism market courses, Sonia Sarkar, The Pioneer.D, 14.9.04, A
but what is required is to develop proper travel 80)
\.;.
and tourism infrastructure. He added that India

I�
should also strive for sustainable tourism
development and also said that by 2020, a new
business model will emerge for global travel and
,
tourism, which would entail new customer
segments. (WTI Tourism shows opens in

I
Mumbai, FE.D, 6.2.04, A 31)

..
B. TOURISM POLICY AN D lQU",ISM DEVELOPME� "
B 01 Special Tourism Areas any construction within that limit. Last month,
The Reserve Bank of India has allowed foreign the Delhi High Court had asked the government
companies to set up branch Offices /units in to review its 1992 notification within six months.
Special Economic Zones (SEZ) to undertake It felt that the blanket ban of "no construction
manufacturing and service aftivities s ubject to within 100 metre" of a protected monument
conditions. SEZs at different places in the needed to be relaxed or tightened on a case-to­
country enjoy several facilities including case basis. The new DG of ASI, C. Babu Rejeev,
freedom to import and export goods, tax said a committee is being formed to review the
waivers, zero duty regime, relax labour laws etc. rule.
on the lines of such zones functioning �n (Panel to review construction near monuments,
countries like China. This model has been a huge Saurabh Sihna, HT D 30.8.04, B 20)
. .

success and India wants to replicate the same.


B 30 ITDC
However, all these days the government had
Tour operators said that they would seek a
allowed only the domestic entities to do business
meeting with finance minister to suggest
in SEZs. But the Reserve Bank in a notification
withdrawal of service tax on, their foreign
dated January 16 has given "general " permission
exchange earnings. Tour operators, led by
to foreign companies to set up their units.
Indian Association of Tour Operators (lATa),
said that they would, however, resort to an
RBI has, however, made i t clear that the foreign
agitation on the issue after 7 -1 0 days, if the tax
companies will be allowed to establish only
was not withdrawn. Other organisations of
those units where the government has allowed
travel trade such as TMI, TAPt ITTA, UHF will
100 per cent foreign direct investment (FDI) and also join lATa on the issue, lATa president
if they function on a "stand alone" basis". By Subhash Goyal said.
stand-alone basis, RBI has said such branch
offices would be isolated and restricted to the "The Centre and state governments are already
Special Economic Zone alone and no business charging several taxes such as road tax,
activity will be allowed outside the Special passenger tax, luxury tax and sales tax from
Economic Zones in India, which includes tourists. Addition of another tax will make the
branches/ subsidiaries of its parent office in tour packages more costly. As a result India will
India. In the event of winding-up of business become less attractive and in competitive tourist
and for remittance of winding-up proceeds, the destination," (Tour Operators To Meet FM O n
foreign unit will need to confirm that all Service Tax Withdra'wal, FE.D, 28. 08.04, B 30) �
liabilities in India including arrears of gratuity
and other benefits to employees etc. are fully B 32 Tourism Facilities, Transport,
met. Further, no income accruing from sources accommodation i
outside India including proceeds of exports An Indian Hotels Corporation Ltd (IHCL) c:::..
(Foreign
has remained umepatriated to India. official said there has been a tremendous �
finns a llowed to set up SEZ units, DH.B, upsvving in the tourism industry, which has S'
18. 01.04, B 01) greatly facilitated the hospitality segment. Room
occupancy levels have been increasing and with
'"
B 20 Tourism Legislation, Rules, Regulations, the season on full swing, there should be good
Acts growth expected. The up trend in the sector is \:l
(
Good news for people who own properties near mainly due to business and corporate travel, R:\
monuments. The Archaeological Survey of India which has grown by percent due to the upbeat '01
(AS I) has begun the process of reviewing the economic s p i r it and s t a b l e . p o l i tical
.
lOa-metre rule that prohibits environment, says BTI Sita,
'.

I
e ..�

COO Vijay Chadda. He feels the growth will


�$
milestone economic agreement will be signed
sustain, and much depends on the sustain ability during the middle of the year which will further
of information technology sector and future of strengthen the tourism cooperation between
business process outsourcing industry. Coxs & India and Singapore," the Minister said and
Kings head (business development) Gopi R Singapore attached great importance to the
Iyengar said a growth in air travel is welcome, as Indian market as it figured in the top 10 visitors
increased capacity will mean added business for generating market, he said. The members of the
the tourism industry.
MAC (India) sought his intervention in further
relaxing the visa regulations for Indian travellers
Aided by the feel good factor, a lot of domestic
and ensuring "hassle- free" travel arrangements
and international travellers are arriving in the
city. Since Chennai is known as th� gateway of for promoting tourism. (India-Singapore pact to
India from Far East, there has been a spurt of promote tourism, T.S.Shankar, TH.D, 22.2.04, B
arrivals from this region as well as from the 60)
traditional places like the United States and the
B 63 International Network
United Kindom. The government needs to
India has bid to host the fifth World Travel and
increase flights into India, as there is a lot of pent
Tourism Council (WITC) summit next year.
up demand from overseas tourists, which will
India has made the offer to host the event in
greatly help the travel & tourism industry as
well as the hospitality segment, he added. Delhi at the fourth W1TC summit. The offer to
(Tourism Take-OffPilots, FE.D, 25.02.04, B32) host the event was made by the Indian side led
by India Initiative chairman, Mr. Lalit Suri, who
B 60 International Tourism Issues is an hotelier and MP. India's Planning
Increased air capacity between India and Commission member, Mr. N K Singh, also made
Singapore and the twinning of business a presentation at the summit, hosted by Qatar
opportunities and tourism promotion would Airways and Qatar Tourism Authority, on
form the major components of the proposed
"brand India" and sought the support and
comprehensive agreement planned to be signed
cooperation of WTTC to develop the tourism
between the two countries, the Singapore
and travel market in the country. (India places
Minister for Trade and Industry, George Yeo,
bidfor world tourism summit, BL. C, 5.5. 04, B 63)
said. "We are confident that this

C. TOURISM ECONOMY, INDIAN ECONOMY


C OO Tourism Economy and Tourism and Thekkadi. The newly formed King National
� Infrastructure Air Charter has sought DGCA (Director General
! .
of Civil Aviation) nod for chopper operations In
i , :� .. After testing waters in the Kerala. Buoyed by the phenomenal 25 per cent
.• � J� f�L : sh ort-l ived p o l l-tou rism
. ' " "��!;: 2J , j" product, innovation appetite at
"
growth in tourist arrivals in the closing season,
the operations are slated to start by November
:.;, I V��'ll .� . Kerala tourism work stables
.

,
1 • • ••-,.• .'1/,. > .. . ' has turned to chopper tourism. 2004. Kerala tourism has been known to be
receptive to necessities like helicopter taxis to the
·1.:;,' @1
( <;;J It'S �ot the .first time the God's w� country has
.

0 point of offering to construct helipads at tourism


busmess fl hts f fancy, b ut e echon fever has
19 0 1 spots like Vagamon and Ponmudi. (Chopper
the tourism trade going at it ful! throttle. From tourism gaining ground as election fever grips
the coming season, a private helicopter service Kerala, FE. C, 07.05.04, C OO)
has plans to string together hills, backwaters and
jungle destinations like Munnar, Kumarakom
A nice blend of top-class medical expertise at Finding a way out: {f the move on luxury tax is
attractive prices i s helping a growing number of unacceptable what's the alternative being suggested?
Indian corporate hospitals lure foreign patients, Raise the service tax on banquets. At present, it' s
including from developed nations such as the 8 per cent on 70 per cent o f the food bill. Make i t
UK and the US. If livers transplant costs i n the 1 0 per cent likewise, up the sal es tax on food
range of Rs 60 lakh-70 lakh in Europe and double served in five-star hotels from 8 to 10 per cent.
that i n the US, a few Indian hospitals, such as There's a catch, though different departments
Global in Hyderabad, have the wherewithal to handle luxury tax and sales tax. (Govt. greets
do it i n around Rs 15 1akh-20 lakh. Similarly, if a tourists with new luxury tax, S ou rish
heart surgery in the US costs about Rs 20 lakh, . Bhattacharyya, HT.D, 9.9.04, C 03)
the Chennai- headquartered Apollo Hospitals
Group does it in roughly Rs 2 lakh. C 10 Indian Economy
The World Bank's stem warning to state
But, things are going to change drastically in governments that embark on populist measures
favour of India, especially in view of the high like offering free power may come as a surprise
quality expertise of medical professionals, to those accustomed to the Bank's styIe of
backed by the fast improving equipment and functioning. Over the years, the World Bank has
nursing facilities, and above alt the cost­ learnt (the hard way!) to keep a low profile.
effectiveness of the package. I n addition to the Given the sensi tivities o f populations i n
increasingly top class medical care, a big draw developing cOl;!ntries, many o f who resent the
for foreign patients is also the very minimal o r bank's belt -tightening advice to crises Co untries
hardly any waitlist as i s common in European or and see it as a US agent, Bank officials usually
American hospitals. In fact, priority treatment is take care not to ruffle feathers. Which i s why its
provided today in Indian hospitals. (Indian plain speaking on the issue of free power i s
eyeing share in medical tourism pie, M. rather unusual. That does not make it any less
Somasekhar, BL.B, l1.5.04, C OO) timely, however. With the results of the recent
election being interpreted as a vote against
C 03 Tourism Finance
reform by the political class, both Andhra
To raise luxury tax collections to Rs 1 25 crore, it
Pradesh and Tamil Nadu are bending over
has made it mandatory for hotels and inns to
charge the 1 2 .5 per cent luxury tax, which the backwards to offer freebies. Both chief ministers
'"
are perfectly aware that this is not a n
industry says is the highest in the country; on
economically viable solution. O n the contrary, it �
published tariffs (or ' rack rates'), and not the
actual rates that guests pay. Lalit Suri, member do es incalculable harm to the ' long-term fiscal �
of Parliament a11d president of Hotel Association health of the state and given the precarious state �
of I ndia, calls this "a very disappointing move". of their finances, is completely unjusti fied. The '"'
From September 6, guests are being made to pay additional expenditure on these freebi/i.S has to '- "­
a tax o n room rates they were never charged. In come from somewhere - either from increased �
!)
Haryana, on the other hand, there' s no luxury revenue o r from lower expenditure or, when
tax; in Raj asthan, the rate i s 6 per cent on actual neither is pOSSible, from borrowed funds.

rates; i n up, it's 5 per cent. It's a standard Raising more revenue is unlikely to go down
industry practice to charge discounted rates well w i th the e l ectorate. H e rt c e , most ( �

from airline crews, corporate customers, governments try to cut down expenditure. And �
conferences and groups. The average peak since i t is far easier to cut capital rather than V I

season room rate in the five-star sector, for r e v e n u e e xp e n d i t u r e , e s s en ti al capital


i nstance, hovers around Rs 4,000 to Rs 6, 000, but expenditure i s often given the g o by: Where this

I
the rack rates could be Rs 1 0-12,000. has already been pared to the bare
minimum, states have no option but to borrow. reprieve to the industry by reducing luxury tax,
Borrowing to finance current expenditure is, (Public­
Kerala's tax remains substantially high.
however, an invitation to disaster when no asset Pvt partnership in tourism turning sour, c.].
is being created to service the loan. So far, states Punnathaa, BL.C, 23.8. 04, C 10)
have been able to muddle along because, given
the compulsions of federal politics, the Centre Out of all the south Indian states, Tamil Nadu
invariably comes to their rescue at the last (TN) tops the list of states for foreign direct
minute. The World Bank, however, has none of investments (FDI). Karnataka follows TN, which
the compulsions of the Centre. It can afford to is a notch below 1N in the pecking order.
take a purely commercial view of its lending. But Ironically, Andhra Pradesh (AP) is not in the list
will that rein in recl<.less state goverruitents? of top five FDI destinations in the country .
(Welcome can dour, World Bank's Plain speak is According to official estimates, for the January
timely, ET.B. 20.6.04, C 1 0) 1 991 to March 2004 period, TN accounted for
close to 9 per cent of the total FDI, which came
The d ecade-old public/private partnership in into the country. However, of late, there is a
Kerala's tourism industry is turning sour. perceptible shift in FDI inflows away from the
" Beleaguered by inordinate delays in the manufacturing sector t o knowledge-based
decision making process, lack of transparency in d us tries such as IT business p rocess
and a relatively high cost regime, the pioneering outsourcing (BPO) and biotechnology.
partnership between the private and public
sector tourism industry is fraying at the edges,". According to the numbers published in the
These factors have given an inherent advantage Economic Survey 2004, TN has garnered 8.58 per
to neighboring states. "The sleeping giant in cent of the total FD I inflow into the country since
Tamil Nadu is waking up, Pondicherry is January 1991 up to March 2004. This translates to
conjuring up new initiatives and Karnataka has a whopping Rs 25, 071.77 crore or $6. 52 billion
been consistently wooing private sector and new worth of investments. While Maharasthra has

entrepreneurs to explore and exploit its new and cornered a 17 per cent share in total FDI during
the period, Delhi finished second with a 12 per
nascent ferritories/' Mr Jose Dominic, Managing
cent share. Gujarat comes fifth with 6.44 per cent
Director of the CGH group of hotels said.
and Kamataka ranks fourth with a share of 8.26
per cent in the FDI pecking order during the
It had been a tremendous decade for Kerala
period. In domestic investment too, TN finishes
tourism. Revenues had shot up to Rs 6,000 crore
third with an 1 1 per cent s!"tare as of March 2004.
annually, employing six lakh people and
Maharasthra tops the list with 13 per cent and
clocking double-digit growth figures. The
Gujarat comes . third with a 9 per cent share.
demand side is still strong, but the supply side '
Karnataka ranks fourth with 7.5 per cent and
has begun to weaken. Quality rooms are no
Andhra Pradesh finishes fifth with'a 7.1 per cent
longer coming up at the earlier hectic pace. New
share in the domestic investments list. (TN tops
properties have not been coming up in yet to be
FDI list for southern states, ranks third in the
explored virgin regions and the established
overall list, P. VinodKumar, FE.B, 23.8. 04, C 1 0)
destinations are getting overcrowded. "A high
tax structure has been wearing down the
In its 2004 World Investment Report released
resources of the industry and reducing the
here, Unctad said world FDI flows have shifted
quality of service, " the sources said. On the cost
from manufacturing to services, cornering
front, the appendages for the hospitality
nearly 70% of the FOI. The report showed that
industry are among the highest in the country.

I
FDI inflows to India grew by 2'1, %' to $4.26 billion
'While Karnatakaand Tamil Nadu have given a in 2003 over $3.44 billion
in 2002, putting Jn4ia among top 1 0 FDI (Exim) Policy, heralds a major shift in the
destinations among developing economies and Government's thinking on the country's foreign
fourth among Asian nations. trade.

As per international norms, FDI should include Over the past few years, efforts were made to
fresh inflows, re-investments and borrowing by l i b eral i z e t r a d e p o l ic i e s b y r e m o v i n g
foreign s ub s i d i a r i e s fro m their parent quantitative restrictions o n imports and
companies, whereas India only takes into lowering import tariffs. But the accent remained
account new inflows. According to the Unctad mostly on earning foreign exchange for the
estimation, the declining trend of FDI flow country. However, the policy has, for the first
worldwide will reverse in 2004 as worlq time, tried to integrate the trade policy with the
economies have shown some encouraging process of the country's economic development.
figures this year. "Global inflows ofFDI declined
in 2003 for the third year in a row prompted by a While economic reforms since 1991 tried to make
fall in FDI flows to developed countries. a decisive break from more than four decades of
According to a Nasscom report, during the past inward orientation, the economy, even today, is
decade the value of exports of software and hardly in the reckoning as significant players oil
services jumped from less than $0.5 billion to $12 the world scene. India's share in the world
billion in 2003 04. (India A mong Top Four FDI
- exports is a meager 0.8 per cent compared to
Sites In Asia, FE.B, 23.9.04, Cl O) China's 5.1 per cent. Exports accounted for just
around 10.3 per. cent of GDP in 2002-03, while
C 11 Liberalization Policies imports were valued at 12.8 per cent. The new
Coastal Karnataka has enormous potential for policy makes an effort to change the mindset and
becoming a great regional hub and a creative view trade as an engine of growth by emulating
melting pot and economic powerho u s e . the examples ofJapan and China.
Dakshina Kannada, Udupi and Uttara Kannada Objectives and strategies
districts hold o ut immense promise for
investments in tourism, agri-business, food The policy i s built around two major objectives:
processing, IT and IT-enabled services, and • to double India' s percentage sha re of
biotechnology sectors. The proposed Export
global merchandise trade by 2009; and
Promotion Industrial Park (EPIP) and special
• to act as an effective instrument of economic
economic zone (SEZ) will bolster the economy of
growth by giving a thrust to employment
the region and provide vast opportunities for
generation, especially in semi-urban and
downstream industries. The coastal area should
rural areas.
not be regarded as a "captive colony" for the use
of its resc · rces. (Infrastructure development
Important among the strategies spelt <::JUt to
vital for costal region growth, BLB, 12.1.04, C
11) achieve these goals are unshackling of co ptrols,
simplifying procedures, bringing down the
The New Foreign Trade Policy aims to double transaction costs,' and facilitating development
India's percentage share of global merchandise of India as a global hub for manufacturing,
trade by 2009 and spur economic growth with a trading and services. In a major move towards
thrust to employment generation. While trying unshackling of controls, all goods and services
to integrate trade policy with economic exported, including those from Domestic Tariff
development. The first National Foreign Trade Area (DTA), have been exempt from sel-vice tax
Policy, unveiled by the Commerce Minister, M. and all exporters with minimum turnover of Rs 5
Kamal Kath, on August 31, which replaces the crore and good track record have been el(empted
2002-07 Export Import from furnishing bank g uarantees

I
in any of the schemes so as to red uce their
d uty-free import of t r i mm in g s and
transaction costs and procedural delays.
embellishments up to five per cent of FOB value
of exports, which would also be exempt from
The policy also aims at neutralizing the
countervailing duty (CVD); and authorisation to
incidence of all levies and duties on inputs used
the Handicraft Export Promotion Council to
in export products, based on the fundamental
import trimmings, embellishment samples for
principle that duties and levies should not be
exported along with products and services. small manufacturers, who are unable to do this
on their own. It has also been decided to
Thrust areas establish a new Special Economic Zone for
The chosen five thrust areas to promote handicrafts. Promotion of handloom and
employment-intensive exports are: Agricuiture, h a n d ic rafts should h e l p generate more
gems and jewellery, leather and footwear, and employment opportunities in semi-urban and
handloom and handicrafts. A day after the rural areas.
announcement of the policy, the Commerce
Minister', indicated that the Government would Services exports
also bring out special packages for textiles, tea The trade policy has d rawn up an ambitious

and coffee to boost 'their exports. Further, more scheme to provide a major thrust to services

thrust areas could be identified in the coming exports since they account for over 50 per cent of

days. the country's GDP now. For this purpose, it is


proposed to create a ' Served from India' brand,

A welcome feature of the package for agriculture and set up an exclusive export promotion

under the scheme called "Vishesh Krishi Upag council for services sector along with schemes to

Yojana" is the accent on flowers, fruits, assist and promote homegrown service
providers.
vegetables, minor forest produce and their
value-added products and not on food grains.
The Council is exported to map opportunities for
Exports of these products would qualify for
key service in key markets, and develop strategic
duty-free credit entitlement equal to five per
cent of the FOB value of exports. Moreover, market access prograrn..71es, L.'1 cludL'1g brand
building in co-ordination with sect oral
capital goods imported under EPCG (Export
P r o m o t i o n C a p i ta l G o o d s ) s c he m e for players and recognized nodal bodies of the

agriculture would not attract any duty. service industries. Also, Common Facilitv
Centers would be set up for use by home-based

There is now a growing realization that agri service providers, parti):ularly in areas like

export thrust will be meaningless unless the engineering and architectural design multi­

sector's productivity is not enhanced through media operations, software developers etc, to
I
d raw a vast m ul titude o f Home- based
.

increased investments in irrigation and R&D.


professionals into service export aJ;ena.
Also, a number of studies have emphasized time
and again the need to shift from food grains to
other crops which are more labour absorbina H is expected that the new policy will help broad­
"
and which could yield higher incomes. These base services exports from the countrv, which
are currently dominated by software exports.
include vegetables, floriculture, horticulture,
The expectation by that services exports will
animal husbandry and fisheries. Similarly, more
grow to $150 billion by 2009 in which software
employment could be created in rural areas by
encouraging p os t-harvest processing for services will account for about &65 billion.

exports. The incentives offered to handloom and


The other highlights a/the policy include:
handicrafts, which are the p redominant
• A "Target Plus" scheme to reward exporters
achieving a quantum growth in exports;
segments of India's cottage industry include
• A new scheme to establish Free Trade and
Warehousing Zones (FTWZs) to create trade Shortages, have outlived their utility. Though
related infrastructure and to make India a many of these schelJles were intended to be
global trading hub; transitional, they are still continuing because of
• A scheme to set up biotechnology parks strong lobby pressures rather than their
enjoying all facilities available to 100 percent economic merit. A case in point is the
Export Oriented Units (EOUs); and controversial duty entitlement passbook (DEPB)
• Revamping the Board of Trade and scheme, which is being widely misused. The
assigning it a dear and dynamic role. various export incentives cost the Government
Tasks and challenges about Rs 40,000 crore per year and the DEPB
At the outset, the task of doubling the value of scheme alone accounts for about Rs 1 1,500 crore.
merchandise exports by 2009 appears quite
daunting. In 2003-04, India's merchandise Clearly, the time has come for India to get away
exports Were valued at $63.45 billion, accounting from the traditional concept of trade promotion
for 0.8 per cent of world exports. If this share through the plethora of sops and to focus on
were to double to around 1 .5 per cent by 2009, making the Ind ian industry globally
the country's exports would have to rise to
competitive. For this, the industry needs a level
around $150 billion by then taking into account
playing field, freedom to decide on growth
the expect growth rate in the world trade over
strategies, adequate infrastructure support in
the next five years. To achieve such ambitious
the form of modem highways, good roads,
export target, there s h o u l d b e massive
world-class ports and, above all, good quality
investments in infrastructure and far-reaching
power supply at reasonable rates. Hopefully, the
changes must be effected in the domestic
high-powered committee on infrastructure, set
policies, including early deregulation of internal
up by the Prime Minister, Dr Manmohan Singh
market. Some of the areas that will need early
action include removal of 55! reservations in recently, will take a fresh look at the gaps in

most products to allow for economies of scale, infrastructure, induding the power sector

change in exit policy, and changes in labour reforms. Unfortunately, the countries "Foreign
laws. Direct Investment (FDI) policy is mired in
needless controversy because of the stand taken
There is a need to push ahead with the m uch­ by the Left parties that are supporting the
needed tax reforms to make Indian industry coalition Government from outside. Even after
more competitive. These inc l u d e nearly a decade and a half of launching of the
implementation of a full scale countrywide process of liberalization and globalization, India
value-added tax (VAT) on all goods and services has not been able to attract FDI on any significant
and scrapping of all other indirect tax levies by
scale. I
the Central and State Governments and moving
"-
towards a low single tariff rate on all imports
A more aggressive push to FDI is needed both
instead of charging different rates for different
products. This will do away with most for achieving a higher GDP growth and
procedural delays and help reduce the rampant increasing exports of industrial and agro
corruption. products. For FDI is important not only to
increase the rate of investment in the economy
Also, the special packages, sectoral sops and the but also for inducting new technologies and
plethora of export promotion schemes, tax management practices, and scraping obsolete
incentives, import entitlements and so on, which and sub-critical capacities. (Ne'w Foreign Trade
were designed in an era of stringent import Policy, Viewing trade as a an engine of growth,

I
controls and recurring foreign exchange
S.D.Naik, BL.B, 11.9.04, e l l)
e:,.� .!
!..!.,•!.••·
:

.� .�.
.

Though bristling with schemes and plans, the with a large number of outlets covering all
Foreign Trade Policy neither offers convincing CUIsmes and pricing levels and a multi-level
steps to substantially cut transaction costs nor park to accommodate over' nine thousand
spells out international economic strategy. The vehicles."
Foreign Trade Policy ,..,-,.___........
..., _
..., ---,

(FTP) unveiled on August The FTP is not lacking in the prOVISIOn of


31 hopes to double the promotional measures. For instance, the
country 's p e rc e n t a g e Department of Commerce has formulated a
s h a r e o f g l o b a l scheme c a l l e d A s s i stance to States for
merchandise trade within Infrastructure Development of Exports (ASIDE).
=�=.ili�=�=l.U
the next five years, while Funds under ASIDE will be available for States
ensuring export-oriented economic growth and to develop export-oriented infrastructure. In
employment generation. The easy part of the addition to ASIDE, the Department also
Policy is the identification of the special focus provides direct assistance to exporters under the
sectors. These are agriculture, handlooms, Market Access Initiative (MAl) scheme and the
handicraft, gems and jewellery, and leather. In Marketing Development Assistance (MDA)
agriculture, the focus is on fruits, vegetables, scheme. Then there is a scheme for recognition
flowers, minor forest produce, and their value­ and promotion of "Towns of Export Excellence,"
added products. Development of Agri Export
and a slew of facilities and privileges for various­
Zones and duty free import of capital goods are
grades of "Star Export Houses" .
part of the package for agriculture.

For promoting services exports, the FTP


Handlooms, handicraft, gems and jewellery,
envisages the setting up of the " Ex port
and leather have all along been part of the export
Promotion C ouncil for Serv ices " . Many
policy discourse. What, then, is the value
exporters of services will be allowed duty credit
addition in FTP? In handlooms, for instance, the
entitlements under what is called the "Served
FTT' says, "New Handicraft SEZs shall be
from India Scheme (SIS) ". Similar to the SIS,
established, which would procure products
there is the Target Plus Scheme (TPS), which
from the cottage sector for finishing and
allows duty credit entitlement (as a percentage
'U exporting." Duty free imports of select inputs
of the incremental growth). Special Agricultural
"" such as gold of 18 carat and above are to be
Produce Scheme (SAPS) also has d u ty
� allowed to promote gems and jewellery exports.
entitlement provisions to promote export of
The FTP also notes that cutting and polishing of
fruits, vegetables, flowers; minor forest produce,
t:: gems and jewellery will be treated as
and their value added products. Also, FTP has
� manufacturing for the purposes of certain
� exemptions under the Income- Tax Act. The FTT'
one whole chapter (Chapter 1 4) on d u ty
exemption and remission schemeg.. and another
;,� is not just commercei there is considerable
(Chapter 5) on the Export Promotion Capital
! � linguistic enthusiasm expressed in regard to
Goods Scheme. The FTP has special provisions
developing Pragati Maidan. It is to be
transformed into a "world-class complex (with) for Export Oriented Units, Electronics Hard ware
'..: Technology Parks, Software Technology Parks
brand new, stateof-the-art, environmentally­
: ( � controlled, air-conditioned exhibition areas a and Bio- Technology Parks; and the much­
touted Special Economic Zones. The Chapters
. &. large convention center to accommodate ten
I�1 thousand delegates multiple and flexible hall concerned provide the relel{ant rules and

spaces, auditoria and meeting rooms with hi­ regulations, notably in regard to their operations
tech equipment year-round food and beverage (sales in and purchases from) in the Domestic
d estination Tariff Area.
The Commerce Minister's preamble to the FTP and services, arranging for export oriented
outlines a strategy for export growth that foreign investments to produce and export form
includes the u n s h a ck l i n g of c on tr o l s , the Indian soil, exploring vibrant free trade
s i m p lify i n g of proced ures, n e u tralizing agreements in goods and services, and lining up
incidence of all levies and duties on inputs used domestic investor interest for prod ueing
in export products, identifying and nurturing exclusively for export even if those goods are not
special focus areas with scope for additional part of I the Indian consumption basket. To
e m p l o y m e n t o p p o r tu n i t i e s, facilitating illustrate the last point, one should note that a
technological and infra structural up-gradation, few decades ago Japanese exported nylon saris
and "activating our embassies as key players in to South East Asia and West Asia for sale to
,
our export strategy and linking our Commercial d iscerning Indian tourists and residents,
Wings abroad through an electronic platform for notwithstanding the fact that the Japanese
real time trade intelligence and enquiry women never patronized the sari. Early this year
dissemination." A close look at the FTP shows I found in the famed Barnes and Noble
that the policy is rich in words and one must wait bookshops in the US such classics as.
for actions and results. There is bound to be Shakespeare. They are beautiful pocket books
considerable success in regard to setting up with gold coating on three sides. They are priced
more zones (at times it could mean plunder of low and to sell. They were made in China.
valuable land) and spending crores of rupees in
the name of facilitation. One is at a loss to The preamble to the FI'P also I speaks about
decipher how the FTP will help in unshackling "linking our Commercial Wings abroad through
of controls and simplifying procedures. The best an electronic platform for real time trade
way to gauge them is by looking at how far the intelligence and enquiry dissemination." If taken
i n t erface of exporters with government seriously, this is a very important activity given
d epartments, officials and procedures i s that all sorts of non-tariff barriers and other
minimized i n order to bring d own the innovative obstacles to trade will takeover in the
transaction cost. It is difficult to see effective and wake of reduced tariffs under the WTO regime.
con vincing links b e tw een the FTP and We need to know first who is buying what and
substantial reduction in transaction costs. from whom and, then, why. For the first, one
may need to look no further than the Internet;
The FTP indeed identified once again the focus UN data are readily accessible as long electric
areas - about the same as on previous occasions power and phone lines cooperate. For the
when trade policy announcements were made. second, the Internet will be of limited help and
Identification of focus areas, however, is not the needed are dedicated Foreign Service officers
,
same as articulating an effective international supplying the right information at the right time.
economic strategy. The FTP had taken one (Foreign Trade Policy, L ong on intent, short on
exemplary step insofar as the preamble speaks strategy, Bhanoji Rao, BL.B, 28.9.04, e11, The
about "activating our Embassies as key players author, fonnerly with the World Bank and the
in our export strategy" and the idea ends with National University of Singapore, is Professor
the preamble. Emeritus, GITA,M Institute of Foreign Trade,
Visakhapatnam.)
E x p orting successfully involves a t the
government level, the articulation of an C 23 Railways
international economic strategy - comprising the The Indian Railways has op.e n e d the
diplomatic community's efforts o n s uch International Tourist Bureau (ITB) a t the station
to help foreign tourists plan their trav el and buy

I
endeavors as visa-free entry for accredited
'
representatives of major importers of goods tickets if they have a valid
passport and tourist visa. However, everyday
touts do not even let tourists reach this bureau, increase of over Rs. 365 crores in the current
which is located on the first floor of the station fiscal. (Model rail stations to be developed

building. Miranda, a mid-wife from London, (Model rail stations to be developed, TH.D,
who was traveling to Agra, said: "My husband 9.9.04, C 23)
and I had a harrowing time here. We saw the
board directing us to the bureau, so we started Following the commencement of its first
going there when a n u mber of people 'Railotel' Project in Kumta - the Konkan Railway
approached us and told us that it was closed. We Corporation Limited (KRCL) is on the look out
believed them and were about to start for private sector participation from domestic
bargaining about the deal when some official and non resident Indian (NRI) hoteliers in order
told us that this is just another ploy. We reached to strike an alliance for future 'Railotel' projects.
the bureau only to find it open and working." Industry trends indicate that budget hotels
Pierre, a French national who is on his first trip to around railway stations in most cases taste
India, was taken aback when he visited the success. It is a great opportunity to the budget
station. "I had visited the website and had got a hotelier looking at an expansive target base, SV.
clear indication of how I would be able to reach. Ingle, chief commercial officer, KRCL told.
But when I carne here I saw a lot of construction 'Purnima Railotel', the firs t Konkan Railways
underway at the station. Then a man told me that 'Railotel' project, was launched in Kumta near
the office was closed. I wanted to book a ticket Gokama. (Konkan Railways "Railotel Projects
for Jaipur but what the man was offering was Seeks Pvt A lliance, Savio Rodrigues, FED,
five times the fare that the hotel had told me 22.9.04, C 23)
about. So I decided to explore more. Then I asked
at the inquiry counter and was directed to the C 23 a Palace on Wheels and Royal Indian
office which was open." Manager of ITB, 5unita After a lull, foreign tourists are returning to
Matta, said: "We are aware of the problem. When Rajasthan in droves. In fact, that the popular
some tourists complained to us we realized that luxury train Palace on Wheels (POW) has had to
it is an organized manner of operation. So we make advance bookings for the next three years.
have now put up small boards at places Spurred by this unprecedented rush, Rajasthan
informing them not to believe anyone who tells Tourism has decided to hike fares from the
them that this bureau is closed. We have current $ 350 per person by 10 percent from the
mentioned timings also for the benefit of next fiscal. "We have already got 300 bookings
tourists.(Touts stand guard at R ly Station, for 2006-07 and about a 1,000 plus for 200506,"
Foreigners Almost Never Reach International Usha Punia, state minister for tourism told.
Tourist Bureau, Nidhi Sharma, TOI.D, 6.9.04, C (Palace on wheels drives up tourist arrivals in
23) Rajasthan, Sanjay Thapa, FE.D, 7.9103, C 23 a)

The Railways have decided to develop 317 C 24 Civil Aviation


stations with high passenger traffic, out of a total The Centre has agreed to grant Rs 55 crore for the
of 1.8,000, as model stations by March 2005. The construction of the second airstrip at the

stations will have special facilities for the Mangalore airport, according to PG R Sindhia,
disabled such as ramps, toilets, lowheight taps K a r n a t ak a ' s minis ter for : industries,
and parking lots. So far 33 stations have been infrastructure and development he also said that
developed and work is progressing at the others. "this was a long-standing demand by the state
An official release said the Railwavs will absorb government as the current airstrip at the
the increase in its working expe� es, including Mangalore airport is short and requires a good
fuel cost, especially high-speed diesel, which back-up in the form of a second runway. "
caused an Referring t o his recent deliberations
with Union minister for civil aviation Prafu!
Patel, Sindhia said that the Centre has agreed to corresponding period previous year. According

upgrade the Mysore and Hampi airports. Both to the report, there is a marked decline in aircraft
these locations are a major attraction for tourists movement in both domestic and international

frem around the world. "The Union minister has airports. Aircraft movement at Indian airports

agreed for upgrading the facilities at these two (international & domestic) has declined to 5.6

airports. The ministry has also agreed to provide lakh in 2003-04 from 6.3 !akh in 2002-03.

night landing facilities at the Hubli airport," India has recently signed an air services
agreement (ASA) with Thnisia, which adds up to
Sindhia said. (Rs 550' gram M'lore airport,
Central govt's grant for airport's second 101 countries. The government has already

airstrip, BS.B, 1.7.04, C 24) permitted designated airlines of all countries


having ASAs with India to operate up to seven
The decision to develop the Safdarjung Airport services per week each to any of two of the 1 2
area hangs in balance. Union Minister for Civil i n te r n a t io n a l airports on condition of
reciprocity.
Aviation Prafu! Patel decided to "scrutinize the
high-security zone and proposals made for the
Passengers (in Nos) 02-03 03-04
development of the area". Patel had said his
ministry was considering various proposals for International Airports 1,66,50,117 1, 48,25,799
d eveloping the non-operational part of
Domestic Airports 3,20,41,2132 88,97,525
Safdarjung Airport, which included setting u p
o f a cultural centre. He, however, added that the Source: Ministry of Civil Aviation
airport would not be closed for operations. Foreign Tourist Arrivals 2.47m 2.92m
(Safdarjung Airport to stay open, Sheila wants a Source: Ministry of Tourism
cultural center, IE.D, 27.8.04, C 24)

A string of bilaterals, significant air capacity


(The tourists are coming, but not by Air, Rajeev
addition and a buoyant tourism industry failed
Jayaswai, FE.D, 11.9.04, C 24)
to shore up the air traffic movement in the
country during 2003-04. According to the India has approximately 120-130 aircraft while
annual report of the civil aviation ministry, the China has 600. Our business here could grow in
passenger traffic at Indian airports '(both multiples of $240 million. We see the number of
international and domestic) hp.s dropped by 5 aircraft doubling from 120, but continued easing
million or over 1 0 % in 2003-04. Overall of regulatory policy is needed." Ani! Chawla,
passenger movement at international and chief executive officer ot GE Commercial
domestic airports was 48.69 million in 2002-03 Finance-India and Southeast Asi@, added: �
which dropped to 43.72 million in 2003-04. "Look-at what is happening around ilis. The no­
frills carrier growth story has not b�n tapped �
On the contrary, foreign tourist arrivals
increased sharply by 1 8 % from 2.47 million in
yet.

v

2002-03 to 2.92 million in 2003-04, according to A sea of opportunity


figures compiled by the ministry of tourism. • One out of lO planes flyillgl1as GE connection
This has been partially reflected in the number of • Operates in 60 countries
passengers handled by international airports,
• Asset base $35bn, $500 m net
which decreased 11% to 14.82 millionin2003-
• Globally $5 bn invested in corporate aviation
04from 1 6 . 65 million in 2002-03. Traffic
• In talks with several bidders for India's airport
movement in domestic airports too dipped
modernisation
almost 10 % to 28.89 million in 2003-04 from 32.04

I
• In talks with Kingfisher Air
million in the
Chawla is also betting big on corporate aviation security to labourers in these sectors. The law
as well where they have recently done a Falcon will inclu de the agriculture sector as well the
Dassault for Taj Air, Navin Jindal's Cessna d raft bill may be placed before the Cabinet
Citation q 2 and a Gulf stream V for a large committee this year itself. Following the
industrial house. GECAS wants' to be an recommendation, the Labour Ministry under the
NDA Government had drafted a Bill for
integrated financier for the aviation sector. The
"umbrella legislation" at the end of 2003. The
company is also in a dialogue with several of the
Bill, however, failed to receive the Cabinet
bidders for India's airport modernisation
approval Stating that there were many
programme. Liu said: "We will act as a secured
differences of opinion among trade unions,
debt 'financer for equipment, cargo-related
' entrepreneurs in small and cottage sectors, and
Operations security and sensors et al."(GE eyes the State Governments as regards the previOusly
Indian aviation deals, in talks with airlines to drafted bill, sources said that in its fresh attempt,
tap huge growth potential, Sandeep Bamzai, the Ministry was trying to iron out the
HT. D, 1 7.9.04, C 24) d ifferences first. (Draft Bill on social securityfor
unorganized sector soon, Pratim Ranjan Bos e,
C 30 Tourism Industry
BL.B, 10.3.04, C41)
Finance minister P Chidambaram on 4. 8.04
cleared 46 proposals o f foreign direct investment
The Supreme Court has field that "employees
(FDI) amounting to Rs 408.22 crore. The major performing similar jobs but having different
FDI proposals pertain to the sectors of shipping, e ducational qualifications can be treated
tourism, non-banking financial companies and differently" with a higher pay and the doctrine of
software development, according to an official "equal pay for equal work" would not apply. A
release. The biggest FDI proposal, worth Rs three-member Bench, comprising the Chi ef
317.8 crore, is from crore, the Denmark-based Justice V.N. Khare, Justice S.B. Sinha and Justice
Maersk for the setting tip of a new joint venture. S.H. Kapadia, said that "the holders of a higher
This is for the redevelopment of bulk terminal to educational qualification can be treated as a
a container terminal in Mumbai. The second separate class and such classification, it is trite, is
largest FDI proposat worth Rs 5 0 crore, pertains reasonable". The applicability of the doctrine or
to the enhancement of equity of Germany-based "equal pay for equal work" on the touchstone of
Article 39 (d) read with Article 14 of the
BMW Holding from 50 per cent to 100 per cent
Constitution would have to be considered on the
byway of acquisition. The Indian partner is Birla
premise that except disparity in educational
Home Finance Ltd. The next substantial FDI,
� qualification, the nature of work performed Was
proposal amounting Rs 20 is from the Mauritius
identical. The Bench gave the ruling while
't:l based Two Seas Holdings Ltd for the
dismissing the petition from ; the Madhya
development of a deluxe international five star
� Pradesh Rural Agriculture Extension Officers
hotel in Mumbai. The Indian partner is Juniper
'; �
<:> Hotels. (Govt. Clears 46 FDI Proposals Worth
Association challenging a decisiorf'<:lf the State to
prescribe separate pay scales for graduates and
Rs 408 Cr, FE.B, 5.8.04, C 30) nongraduates, though both performed identical
jobs.
C 41 Labour Policy, Legislation, Laws and
Implementation
As part of the common minimum programme,
Upholding the Government decision, Mr. Just ce �
Sinha, writing the judgment for the Bench, s�ld,
the Union Government is giving final touches to "Article 14 (right to equality) does n�t forbld a
draft umbrella l e gislation for increasing reasonable classification. I t forbIds class
productivity in small and unorganized sector legislation but permits reasonable classification
and providing social subject to the
f

conditions that it is based on an intelligible


differentia and that the differentia must have a

to get definite trends. The 20 per cent increase in
tourists is common across the industry. Tourists
rational relation to the object sought to be from UK, France and US have been the largest
achieved." Such a policy decision ex facie could markets for EIH Ltd with Japan, South America
not be termed to be arbitrary or irrational, and Africa opening up newer markets for the
a ttracting the wrath of Article 14 of the company. " (Internationa l Clients At Oberoi on
Constitution. A valid classification could be The rise post Hilton deal, Mahesh Tharani,
made on the basis of their educational
FE.B, 29.6.04, CO)
qualification despite the fact that the employees
had been performing similar duties and
Taj Group, belonging to India's biggest hotel
functions, the Bench said.
chain, India Hotels Ltd, has decided to set up
(Where equa I payfor equal work does no t apply,
four economy hotels popularly known as Taj
TH.B, 8.4.04, C 41)
Budget Hotels in Uttaranchal shortly, according
CO Companies to Uttaranchal Tourism Development Board,
There has been an increase in international additional chief executive officer AK Ghosh.
clients in the properties of East India Hotels "The Uttaranchal government has already
(EIH) Ltd following their strategic alliance with finalized with the Taj Group for setting up t f€se
Hilton' International. Rattan Keswani, senior four budget hotels in the state, two of which will
vicepresident, Oberoi Hotels and Resorts says, be located in the Garhwal region and the other
"We were expecting a raise in clientele with this
two in Kumayun regionll • He said that the
alliance. Though it is too early to find a trend and
U ttaranchal government has' allotted Rs 38 crore
get essential data, we have seen an increase in
for the development of tourism sector for the
customers. The Hilton network has kicked in
current financial year of 2004 -05. "The Union
and people who prefer staying at the Hilton are
government has also committed to provide
1 making their way here (Hilton Towers,
Uttaranchal government with Rs 12 crore for the
Mumbai). The Trident Hilton Gurgaon has also
seen a rise in foreign and domestic clientele due current fiscal, which is much higher than the
to industries set up there." The Hilton Towers, amount: provided by it during the last few years.
M umbai is enjoying a 73 per cent occupancy rate, He said that from: 1 991 to 2000, Union
';.;

an increase of 20 per cent over the previous government's allotment was Rs 6.5 crore, from
"'"
years. The growth however is common to the 2001 to 2004 it was Rs 1 2 crore.
(Taj to Set Up 4
industry and Mr. Keswani says, "We will have to Budget Hotels In Uttaranchal, Sumanta Ray �
wait until November Chaudhuri, FE.B, 21.8.04, CO) .
D TOU R ISM PROMOTION AND TYPES OF TOU R ISM
D 00 Tourism Volumes and Patterns already had success with village t urism," b �
Close on the heels of Haryana launching farm (Go·vt. Plans 'village tourism', Sautabh Sinha, �
tourism, Delhi is soon going to promote some of HT.D, 13.2.04, D OD)
. ' . ry:
its villages as a tourist attraction. The concept is
part of Union Tourism Minister Jagmohan's In a move to boost tourism in the country, parks
decision to allot Rs 50 lakh to states to promote are being renovated and heritage sites spruced


up. Even the tour guides and taxi drivers are �
villages. "We have identified village Nangli
educated on tourism and customer care, which .
Razapur that's off Mathura Road near Sarai Kale
would definitely boost domestic and foreign '<:)'j
Khan ISBT. This village was chosen because of tourism. (Project to boost tourism. This forms a
its strategic location. "Foreign tourists going to part o f a n R s SOO-c rore proje c t b e i n g

I
Agra can easily stop here and get a glimpse of implemented throughout the country, said
rural India. Orissa and West Bengal have Assistant Director of
Tourism, Government of India, V Ezhumalai. D 11 Festivals-India
(Project to boot tourism, IE.C, S.3.04, D 00) So what if the country's broken pearl chain is
strewn miles away from the mainland? Sans the
Indians may not constitute the largest tourist existing six kinds of aboriginal tribes, the

and business traveller community to Singapore inhabited 36 islands out of the total 572
identified islands of Andaman and Nicobar
but they definitely represent the highest
come together in complete harmony to celebrate
spending foreign group at 5$1500 per head for a
the Island Tourism Festival, aptly bagging the
four to five day spell, compared to the global
name 'Mini India' in the islands. These islands
average of S$700 for 3.5 days. The expenditure
have an amazing mix of race and culture, with
includes nearly 70% towards shopping, whith is people of all faiths and languages like Hindi,
lower than some years back when the shar� was Bengali, Malayalam, Tamil, Telugu, Punjabi,
even higher at around 80 % . and Nicobari living in complete peace.
The first half of 2004 has shown 22% growth in (Andamans: not tourism fest but a get together,
Indian arrivals, (2,35,000) into Singapore over Paawana Poonacha, ToI.B, 2 7.1.04, Dll)
2002. The month of July alone has shown a 38%
rise in numbers. The d rivers this year have been The six-month long Taj Mahotsav, to celebrate
MICE (Meetings, Incentive Travel, Conferences the 350th anniversary of the Taj Mahal, got off to
etc) and education traffic. Bangalore is emerging a bad start on Monday, with the President and
central ministers keeping away from the
as a serious contender in the new segments. Its
inaugural show and the U ttar Pradesh
share of Singapore bound travel was 6% in 2002
government having to carry it off alone. With the
(23,341 people) but is expected to grow
Supreme Court not allowing night-viewing and
significantly this year, especially with more air
festivities to be held near the Taj without
connections available now. (Desi tourist top clearance from the Archaeological Survey of
spender in S 'pore, Girish Rao, ET. C, 21.8.04, D India and security clearance from the Union
00) Home Ministry, the grand festival plans seem to
be mired in confusion now. The UP government
Foreign Tourist arrival to India has surged over had allocated Rs 5 crare for the Mahotsav, as part
I '\:; 22 per cent in the first eight months of the current of the yearlong celebrations.

,�
l �
calendar year to 2.08 million, a significant
growth over the 13.5 percent growth in the same The reluctance of the authorities to permit large­
period last year. During January-August, 2004 scale celebrations at the Taj is understandable as
foreign exchange earnings through tourist the 1995 concert by Greek musician Yanni
arrival also registered 35.9 per cent increase at brought in i ts w ak e c o m p 1jai n t s from
environmentalists that sound vibrations had
Rs. 14163.14 crare over the previous year, says
damaged the structure. The Supreriie Court also
the latest figures released by the government. In
stopped the controversial Rs 175 crore Taj
the first half of 2004, the foreign exchange
Heritage Corridor project initiated by the earlier
earning from tourist has increased by 31.8
UP government, with complaints that the project
percent at Rs 9,985.99 crore as against Rs 7,576
would have destroyed the marble structure. The
crore in the corresponding period in 2003. The guiding principle in all such endeavours
growth in tourist arrival has been attributed to connected w i th the T aj is the Ancient
the increased advertisement and popularizing Monuments and Remains ProteCtion Act, 1958,
drive by the government in the recent past. which forbids construction within 100 metres of
(Tourist arriva ls surge 25 percent in first 8 the two world Heritage Site monuments, the Taj

I
. months, The Statesmem.D, 9.9.04, D 00) Mahal and the Agra Fort, anp.
,

regulates the work within 200 metres radius.


the centre to show the way. The IAAPI has been
Weathering all onslaughts since its completion
constantly approaching the government for a
350 years ago, the Taj Mahal has managed to
uniform tax structure. This should help reduce
remain unscathed, all these years. Mughal
tax and make their parks more viable. That may
emperor Shah Jahan got the Taj Mahal
finally attract the elusive foreign investors. Also,
constructed over 22 years at a cost of Rs 4.2 crore
concerned about the lack of safety regulations'
over the tomb of his beloved Mumtaz Mahal.
for amusement parks, the association has .
One of the Seven Wonders of the World, the Taj
submitted draft safety rules to the Bureau of
Mahal attracts nearly 14,000 domestic and
Indian Standards (BIS) . Pending cabinet
foreign tourists visiting the monument annually.
approval, the rules will become applicable by
A fine balance must be struck between'
law. (Roller coaster ride, High taxation, lack of
protectin g the monument and allowing
celebrations, which will bring tourists, and in
government Support has n ' t s topped the
turn revenue to the exchequer.
amusement park industryfrom growing rapidly,
(Festival Fiasco, The Taj Mahal is too precious, ShefaliAnand, IE.D, 29.1.04, D 20 b)
a heritage site for mindless festivities, DH.B,
29.9.04, D 11) The Survey of India, the country's apex mapping
agency without which most of tre scientific and
D 20 b Recreation and Theme Parks planned development would not have been
A part from the holiness associated with it, possible, is developing a theme park the Garden
pilgrimage center Haridwar was recently of the Great Arc -" over 55 acres of wasteland on
blessed with a new attraction. An amusement its campus here. The Great Indian Arc grew from
park-right next to the temple complex, so, once the baseline measured at St. Thomas' Mount in
you've offered your prayers you have an Madras in 1802 and spread across the entire
opportunity to unwind! The amusement park at length of the subcontinent to reach its pinnacle in
Haridwar is one among the many that constantly the hills o f Mussoorie above the Doon Valley
keep springing up across the country. Today around 1850. This gigantic task undertaken by
nearly every city boasts of medium to large-scale the Survey of India became the basis for
theme or water parks. Estimates about the exact t o p o g r a phi c a l m a p p i n g o f t h e I n d i a n
size of the industry are vague, but the Indian subcontinent. The garden will have a visitors'
Association of Amusement Parks and Industries " -
'-
centre, a restaurant, an amphitheatre, a wetland
(IAAPI), formed four years ago, estimates it to be "'­
with special plants, herbs and aromatic plants, a
worth over Rs 1,500 crore. It claims that the butterfly garden, a rock garden and deciduous �
industry is growing at 40 per cent per annum. trees. Since it will be located next to the National :::
The association puts the number of parks at 100, Institute for the Visually Handicapped,. a section
excluding the innumerable small parks in 'N
'"
will be devoted as a nature study arcil for the
resorts and hotels across the country. Rs 1,500 visually challenged persons. (A theme park for �
crore is no mean amount, but the industry ,"
Dehra Dun, TH.D, 9.4.04, D 2 0 b)

"

remains largely unregulated and subject to high .:)


taxation, thus hampering its growth prospects. D 20 d Heritage Tourism
"We feel like orphans," says Ashok Goel, Realizing that the new State of Chhattisgarh was
'-.;
d irector, Essel World. We are seeking a "full of surprises" - some three years <,lfter it was
regulatory framework that doesn ' t create carved out of Madhya Pradesh - the State t:j
(
impediments, but at the same time, rationalizes Government has started a mo:e to declare it ' as a
.

the taxes we have to pay." Heritage State. A propos al ill this regard was 0 ,

recently submitted b y the Chhattisgarh


"While all players agree that the industry may Government to UNESCO. Though there is still a

I�"i
take another five years to mature, they want long way to go because "

;j
,
of the 'rigorous and cumbersome' process
;· ?�.i*'�hj'·
the Board's establishment and provide financial
adopted by UNESCO the Chhattisgarh Tourism assistance to the State. Mr. Jagrnohan made the
B oard Managing Director, A JayathiIak, observations during a meeting with the
claimed that the 'unchartered' heartland of the Governor, Madan Lal Khurana, recommended
country had all the features of becoming a that a comprehensive plan be formulated for
Heritage State as it was endowed with rich development of pilgrim centres in Rajasthan as
c ul tural heritage and attractive natural the spiritual tourism centres and sent to the
biodiversity. Having ensured 'success' of Centre for its approval, the Board in Uttaranchal
tourism in Kerala as a lead team member there, was now taking steps for development of the
Dr. J a y a th i l a k said the C h h a t t i s ga rh four dhaams of Gangotri, Jamnotri, Kedarnath
Government was working hard and 'had and Badrinath. (Board for spiritual tourism
recently taken several initia tives in this regard. mooted, TR.D, 25.2.04, D 20 e)

D 20 f Health Tourism
Already having an excellent network of roads as
While Goa is being touted as a medical tourism
compared to other parts of the country, he said
destination, the land of the sea, sun and sand
the Chhattisgarh Government has identified 10
now seems to be pushed one step ahead in this
tourism roads. Though less than two per cent of
d i rection - recuperation tourism. Indian
the overall budget of the Public Works
hospitals are planning to offer quick and cheap
Department of Chhattisgarh is demarcated for
medical treatment to British patients, combined
construction of tourism roads, he said this was
with post-operative recreational tours to Goa.
sufficient to attract a large number of tourists as
The packages are part of a drive by the new
world-class tourist facilities, signage's and
Medical Tourism Council of Maharashtra to sell
public conveniences were also being developed
Indian hospitals as a cheaper, quality alternative
simultaneously. Besides taking a number of tax
to a long-wait on the National Health Service in
saving initiatives and giving industry status to
Britain. Patients will be able to choose their
tourism, the Chhattisgarh Government has
doctor and hospital on a website in Britain and
initiated public private partnership to not only
will be met at the airport on arrival in Mumbai
attract tourists, but also preserve and maintain
and taken to the hospital of their choice. The
the rich cultural biodiversity and heritage of the
"U medical tourism council was set up in November
1 State. For instance, the task of excavating an
� ancient Buddhist site has been given to a non­
last to market private Indian hospitals in
Mumbai. (Goa promoted as medical tourism
� governmental organisation. At the same time,
he said measures were being taken to ensure that
destination, Herald. G, 15:2.04, D 20j)
,

the large-scale tourist flow had no adverse
� impact on tribal culture and heritage. "Tourism
'Medical tourism' will account for 3-5 percent of
the total healthcare delivery mar let and could
is being developed in close consultation with
provide as much as Rs. 5,000;:J.0,OOO crore
tribal Panchayat," he informed. (Chhattisgarh to
revenue to hospitals by 2012. These are among
become Heritage State, Lalit K.Jha, m.D, 2.2.04,
D 2 0 d, S2 0) the findings of a study on healthcare carried out
by the Confederation of Indian Industry (ClI)
"
D 20 e Pilgrimage Tourism and the global consultants, McKinsey. The study

h� The Union Tourism Nfinister, Jagrnohan, has


suggested that a Board for promotion of spiritual
says India has immense potential to bring in
people to utilize the country's healthcare

1@t tourism be set up in Rajasthan on the lines of a


similar Board established in Uttaranchal for
facilities in what is being descrtbed as 'medical
tourism' even as medical costs skyrocket in the
development of four 'dhaams' (pilgrim centres). developed world. The Cn-McKinsey study says
The Centre would assist in the
existing market for medical tourism in India is
small and is mainly limited to patients from the Development Programme (UNDP) to promote
Middle Eastern and South Asian economies. tourism in the country .We have initiated a-rural
However, it could grow rapidly if the industry tourism scheme and have tied up with UNDP
re-orients itself to attract foreign patients. and department of economic affairs to create
(Bright scopefor 'medical tourism', TR.D, 9.4.04, tourism software projects. We plan to identify
D 20j) the tourism areas and promote those areas,"
minister of state for tourism Renuka Choudhary
India's health care sector has made rapid strides said. The government had identified 31 sites
in recent years. This $17 billion industry, under the scheme and, in assistance wi th UNDP,
growing at 13 per cent a year, has been attractirtg has allocated Rs 20 lakh per site for tourism
patients from all over the world, particularly development works. Other schemes in the
from Europe and the US, in addition to those pipeline include awareness camps,
from West Asia and neighbouring countries. d e monstration proj ects and green rating
Many of these patients have endorsed the high schemes in addition to a plan, to reduce the
quality of medical services at a cost considerably pressure of visitors in the popular areas by
lower than in the West. In addition, India's creating new tourist attraction spots. (Un backed
specialized hospitals have joined hands with the Rural Tourism Scheme, FE.D, 26.8.04, D 2 0 g)
tourism industry to offer the benefits of high­
class Medicare, coupled with a stay in soothing Rural India has much to offer to the world. Rich
and scenic environs. The country has a growing in traditions of arts, crafts and culture, rural
number of scenic spots where a patient can India can emerge as important tourist spots.
spend time while undergoing treatment by Those in the developed world who have a craze
doctors practicing traditional Indian medicines for knowledge, about traditional ways of life,
and therapies, like Ayurveda, Siddha, Unani arts and crafts will be attracted to visit rural
and Naturopathy. In addition, India is also home India if the concept of rural tourism is marketed
to practitioners of Tibetan and Chinese well. It is not that the concept is not workable. In
medicines and therapies. In the area of allopathic absence of a..'1y promotional activity for rural
medical practices, India has a large supply base tourism, thousands of foreign "tourists visit
with super speciality hospital services in major rural areas in Rajasthan, Gujarat and south India '
cities. This supply base is spread across the every year. This itself is the proof of viability o f "­
country. India has a large supply base in this the concept of rural tourism.
";;::
area, which is available beyond its borders with
such a back-up, many non-resident Indians, and The government, of late, ha�; realized what the :::
even others in the West Asian region, are rural India, can offer to the world. The Tenth ";;::
planning to set up projects here. At present, 1 5 Plan has identified tourism as one of the major N
telemedicine projects are i n the pipeline. Some sources for generating emp loyment and �
private hospitals, like the Narayana promoting sustainable livelihoods. The Union (,:0:
Hrudayalaya in Bangalore, have m a d e ministry of tourism in collaboration with CNDP ..:.J
arrangements with hospitals in Malaysia for has launched the Endogenous Tourism Project
providing the same service from India.
(A dose '"
linked to the existing rural tourism scheme of the
of Medical Services Can boost Tourism, a government. The UNDP has cominitted $ 2.5 �
healing touch without any cost pangs, FE.B,
22.6.04, D 20j)
million for the project. UNDP will help in areas �\
of capacity building, involvement of NGOs, \':)'j
local communities and artisans, forge strong
0 20 g Rural Tourism
community-private and p ub l i c sector
The government has initiated a 'rural tourism

I
partnerships. The government has decided to
scheme' in association with United Nations
e. .
',..· ·

. �. . ··
. .

.�
. .

develop necessary infrastructure for facilitating wildlife, sanctuaries, the State is under the
rural tourism. So far the government has scrutiny of the Supreme Court. Life is traumatic
identified 31 villages across the country as for the people in the mining belt with mining
tourist spots. This does not mean that India has dust and the related pollution, water, shortages
only 31 potential tourist spots in rural areas. and damage to fields and water bodies.
There are many more. These spots have been
selected on pilot basis keeping in view available Need for participatory forestry: Participatory
infrastructure. There are many other spots of forestry is the need of the hour. There is a big
potential tourist interest where adequate biodiversity of ideas and thoughts on nature
infrastructure needs to be developed. The conservation among us. But, who can deny that
central government has pledged assistance to clean water, clean air and clean surroundings are
the states amounting to Rs 0.5 million for essential for any human settlement.
developing a site for rural tourism. (Rural (Eco terrorism grips Goa, Herald.G, 18.1.04, D
Tourism: It's a Niche Tha t India Can Offer, 20i)
Ashok B. Sharma, FE.B, 23.S.04, D 20 g)
Eco-tourism is essentially "nature-based "
D 20 h Golf Tourism
tourism but it concerns
Golf is much more than just a game. It is a multi­
s o c i o - c u l t u r a I IITr-(Vj-\\�i
faceted industry and its influence spans various
e n v i r o n m e n t
other industries. For instance, golf is about
conservation too. It
tourism where the ongoing demand across the
follows s cientific
globe for newer and fresher challenging golf
principles and practices
courses fuels multi billion golf specific travels.
that help avoid or at
Of course the US market demands the most golf
leas t m i n i m i z e t he
holidays although most holidays in the US stay
within their country which has so much to offer adverse impact on

in every season and of course around 25,000 golf environment. It also


follows an aesthetic and L .. :'I.��"'..t1S�:.!'::!:��_
courses to choose from. The next biggest market
for golf tourists is Europe where the cold winter philosophical approach. It is based on small
months cause seasonal migration of millions of group-activity module, which could be
"golf birds" to southern Spain and Portugal in implemented only by professional or
particular. Next is Japan and Korea where the knowledgeable tourism providers an d not b y all
expense and severe shortage of courses and sundry. It ensures local community
generates millions of dollars for the tourism participation and benefits'them economically by
industries of Malaysia, Thailand, Philippines employment generation and . sustainable
and Indonesia. Of course the 12 million Japanese development. Thus it provides not only
golfers have caused courses as far away as enjoyment but also education, 'to ,tourists, who
Scotland, Hawaii and New Zealand to put up observe, experience and appreciate the "value"
(Golf vacations are becoming
signs in Japanese. of Mother Nature and help in nature grand
more popular than ever, ET B, 8.9.04, D 20 h)
. socio-economic and cultural conservation and
sustainable development. There should be
D 20 i Eco Tourism/Wildlife Tourism rationale in the relation between the resource
:-Jature conservation and development have to utilization and their renewal possibilities. There
sail in the same boat. Goa is tiny but its growth should be innovative employment generation
potential is high. We have a fragile coastal belt without any element of enviroilmental conflict
and along the Western Ghat range, particularly built in it. These three breakdown components
along the periphery of the should be put into
force and a scientific analysis and honest data �eed for tourism to be involved with the
should be available with us. Only then we can community he talked about the Himalayan
say that our tourism practices are well in tune tourist code. The international community, said
with the principles of sustainable development. Professor Querini, was extremely conscious of
this factor and according to the code asks tourists
An effective Environment Management System to help avoid deforestation, keep the water clean
(EMS) increases management capacity of the and avoid littering the area. (Protect nature to
corporate, protects its basic assets, improves the promote tourism, says Italian professor, IE.D,
corporate image, guarantees customer loyalty
11.2.04, D 20 i)
and of course saves cost. Such culture of
The Sahara Group is mulling using bamboo as
practicing EMS should be there in every
an alternative to timber at its proposed
travelj tourism or hospitality business venture
townships across the country . The group is
right from its pre-planning stage. Only then eco­
exploring the option of forging an alliance with
tourism will be meaningful.
bamboo plantation owners to source huge
quantities of bamboo required for building these
But how many tourism promotion projects are
townships. The Sahara Group has plans to build
cleared after ascertaining their eco-friendliness
217 townships in India including the big ones
or s o c i o - c u l tu r a l r e s p o n si b i l i t y . More
like Amby Valley in Maharashtra. The Union
importantly, how many so-called eco-tourism government has, of late, identified bamboo as a
projects themselves are really worth their title? huge potential market. The world bamboo
One of the most vituperative criticisms against congress has underlined the potential for
tourism industry worldwide is that it is not bamboos and the country has set a target of
doing anything in the area of " mismanaged and expanding the current market of Rs 2,000 crore to
uncontrolled tourism", which has damaged the Rs 26,000 crore by 2016. Of the 136 bamboo
environment and corroded local cultures. Yet species that are avail able i n I n d ia, the
another censure is against "the darker side of government has identified 12 species to grow
tourism" that i t tries to mislead tourists to make bamboo wood, which can act as a substitute for
short gains by tagging a product "eco-tourism" timber. He also said that bamboo has certain
or whatever! Our eco-tourism packages have inherent qualities like soil conservation and
drawn more flak than appreciation. (Eco­ water retention properties that make it a good
tourism for sustainable development, T. Damu, choice for the growers, Efforts are being made to
IE.e, 2 7.1.03, D 20 i) keep bamboo out of the forthcoming Forest
Conservation Act. (Sahara Plims to use bamboo
Tourism consumes the environment but there is as substitute to timber for proppsed 2 1 7
a strict connection between the two." Professor townships, laidev Majumdar, FE.B, 1 1.4.04, DO
20 i)
Giulio Querini made this observation while ."

presenting a lecture at the Italian Institute of


Worldwide eco tourism is becoming popular,
Culture. Querini, a professor of Economics, said
adding to the growth in the global economy and
that tourism had a strong cultural impact on
boosting the tourism sector. This concept of eco
southern Italy and manipulation of cultural
tourism includes, rural tourism, ethnic tourism,
traditions. "The fastest growing segment in the
religious tourism, farm tourism, nature tourism
tourism market right now is cultural and natural
and adventure tourism. Tourism worldwide
heritage. But the natural heritage segment will accounts for 10 per cent of the global GDP
completely depend upon whether we are generating 8 per cent of employment. The
successful in protecting our environment and multiplier effects of tourism industry adds new

I
ecology," he said. While emphasizing the dimensions
across different sectors directly and indirectly. In
India tourism sector has, of late, started gaining invest Rs 1660 billion and generate export
prominence and it has emerged as the third revenue of Rs 1270 billion. Vision 2020 for
largest foreign exchange earner for the country. tourism in India states that by the year 2020, total
With a 14 per cent rise in foreign tourist arrivals number of persons employed in the tourism
in 2003, Indian tourism sector earned $3.8 billion sector would be 50 million, contribution of
in foreign exchange, marking an increase of 33 tourism to the national GDP will increase to 7 per
per cent over the previous year. However,
cent and number of foreign tourists will increase
India's share of global tourism market is low at
to 40 million.
0.38 per cent.
' It is high time that India should come out with its
wro's tourism satellite account (TSA) has
predicted by year 2014, Indian tourism industry eco tourism policy, which would not only foster
would generate economic activity worth Rs 7000 eco tourism but also sustainable means of
billion, provide employment to 28 million livelihood. (Policy on eco tourism is the need of
people, contribute Rs 2000billion to GDP, the hour, Ashok B Sharma, FE.C, 30. 8.04, D 20 i)

E TOU RISM, SOCIETY AND IMPACTS


E 01 Environmental Impact of Tourism
The Supreme Court Monitoring Committee Management Authority (GCZMA) has issued
(SMq on hazardous waste, which asked' the notices for disconnection of power and water
Kerala Pollution Control Board to send closure supply against 12 units during the last two,
notices to 109 industries in the state, is slated to months. Most of the notices have Initially
visit industries and industrial areas in Tamil focused on v:olations along Calangu te
Nadu shortly. "We intend to inspect industrial Candolim and Colva-Benaulim belts, action on
areas and major industries including the HAL violations in other coastal areas like Anjuna,
factory in Kodaikanal, Sterlite Industries in Morjim, Arambo}, Canacona, P a l o lem,
T u ti c o r i n, the leather b e l t in A m b u r Sernabatirn are in the offing. The GCZMA i s now
jVaniyambadi and the proposed land fill site seeking to move for d emolitions of the
(for dumping hazardous waste materials), at unauthorized constructions as the next step for
Mellakottiyur, just outside Chennai, according clearing. Although the GCZMA had been
to Dr G Thyagarajan. He said almost 80 per cent constituted in Goa following the Apex Court
of the hazardous waste in the country was being directives, the authority had been powerless and
generated in five states - Gujarat, Maharashtra, unable to act against suchlllegalities die to lack
Karnataka, Tamil Nadu and Andhra Pradesh , of cooperation from the Panchayat podies who it
Among these, Maharashtra has taken the lead in claims are primarily responsible fd: authorizing
r e d u c i n g waste a n d a d o pt i n g c l e a n e r construction in each village Panchayat and in the
production technologies. " I n our country, even coastal belts. (Coastal zone violirtors 'in the
the multinational companies that followed high dark', Herald.G, 1 0.2.04, E01a)
environmental standards i n d e veloping As part of efforts to speedily clear projects, the
countries did not care to obey such principles", environment and forests ministry is planning to
he said. (SlWC on Hazardous Waste to visit have single window clearance, even though
Tamil Nadu Soon, Joseph Vackayil, FE.B, these may be linked to other ministries. Replying
03.9.04, E 01) to querie� by members, environment minister A
Raja said, "we are thinking of having a si�gle
E 01 a Environmental Laws and Policy
window clearance for all environmental projects
Dark and dry days await Coastal Regulatory even though it �s linked to other ministries and
Zone (CRZ), violators as theCoa Costal Zone was causing
delay in project implementation" environmental • Identify newer areas for new legislation based
clearance for project proposals is granted on better scientific understanding while
usually within the mandated time frame of 120 fulfilling needs of economic and social
days from the date of receipt of complete development.
information from project authorities. • Review the existing body of legislation in
order to develop synergies among relevant
The ministry of environment and forests has
statutes and regulations and eliminate
undertaken various measures to streamline and
obsolescence.
simplify the environmental clearance procedure
• Ensure accountability of the concerned levels
with a view to promoting time-bound and
of government in undertaking the necessary
transparent decision-making, by amending the
environmental impact assessment and coastal legislative changes in a defined time frame.
regulation zone notifications and making
procedu ral changes. The minister said According to the d raft: "the objective is to reduce
investment limit for new projects has been delays a n d l evels of d ecision making,
doubled to Rs. 100crore from Rs 50 crore. He said decentralization of environmental functions and
a total number of 250 projects in different sectors ensure greater transparency and
are pending for environmental clearance as on accountability." It also re-examines the approach
June 30 last. to deal with violators of environmental laws and
regulations- presently based on criminal
Foreign tourist arrivals: There has been a spurt in processes and sanctions. It argues that although
foreign tourist arrivals in India in the past two criminal sanctions might have a deterrent
years along with the foreign exchange earned impact, in reality they are rarely fruitful. Civil
from them, the House was informed. While the law, on the other hand, offers flexibility and its
foreign tourist arrivals grew from 2.47 million in sanctions can be more effectively tailored to a
2002-03 to 2.92 million in 2003-04, the foreign situation. The policy calls for a judicious mix of
exchange earnings rose from $3029 million to both civil liability laws for non-compliance,
$3833.5 million, minister of state for tourism
criminal processes for serious and potentially
Renuka Chowdhury said during question hour.
provable infringement of laws. The d::aft also
Health tourism has caught up in a big way in
calls for reforms in the way environment and '"
Kerala, Karnataka and Andhra Pradesh, which
forest clearances are done at the Centre. It says �
were promoting themselves as major tourism
destinations, she said, adding Kerala had regulatory authorities at the local level should be
promoted and marketed ayurveda as its core encouraged so that Environmental Impact

tourism product. (Single window clearance for Assessment can be done at the plcuming stage
Eco-projects o n cards, FE.B, 13. 7.04, E 01 a) itself. For critique on the Draft National "
t
E n v ir o n m e n t P o l i c y p r e p a e d b y �

A draft of the National Environment Policy EQUATIONS refer Annexure 1 (Green belt may .-'.)
Prepared by the Ministry of Environment and see refonns, lE.D, 26.08.04, EOla)
Forests, - that was put in the public domain for
comments has called for reforms in the E 01 b Environmental Issues

The Deputy Prime Minister, L.K. Advani, laid (
legislative structure that governs environment,
the draft calls for a "holistic and integrated" the foundation stone of the 277 hectares Aravali ®
approach by revisiting all the laws, the Biodiversity Park, which will preserve the
institutions that govern, penalties and extinct biotic communities found earlier in the
Aravali Ranges. He said the devel opment of the

I
management techniques used for forests
andwildlife. It seeks to: Biodiversity Park was an
able step in the direction of u p gradation of the Buddhadev Bhattacharjee at the state secretariat
environment. Hoping that the concept would be here recently; was quite upbeat about the
replicated and emulated by the other States, he project, which is estimated to cost around Rs 900
also suggested that a film giving information crore. Besides a floating hotel, the project
about the concept and its objective be made and envisages a nature park, boat-ride facilities in the
shown to all the visitors who visit the Park so interiors of the island.(Medha set to take on
that the awareness regarding the benefits of such Sahara India project, DH.B, 12.09.04, E01b)
a project are understood. Averring that
thousands of species will be created and The Sethusamudram project, envisaging the
nurtured in the Aravali Biodiversity Park, he much-awaited maritime shortcut between the
said it would have besides about 30 biotic East and West coasts of the Indian sub continent,
communities and 2000 to 3,000 species; it will has invited the wrath of environmentalists, with

also have water bodies, a rock garden, a butterfly the M umbai-based Bombay Natural History

park and a safari park. The gathering was also Society (BNHS) coming out strongly against the

informed that the Yamuna Biodiversitv Park in project. The society is of the view that the project

an
will have serious impact on the marine
Wazirabad, which carne up on ar� a of 160
environment in the region. Moreover, a project
acres, would be further extended to 500 acres in
of this scale may not be financially viable either.
the near future. (Foundation of Biodiversity
On the environmental side, BNHS pointed out
Park laid, TR.D, 23.02.04, EOlb)
that the project would cause massive migration
of fish, mammals and other fauna into deeper
Severe environmental threats such as rise in the
gulf regions, reduction in the fishing area and
sea level and sea surface temperature, and land
heavy pollution due to the ballast of water of
erosion could render about 30,000 people in the
passing vessels. According to the Society, even
Sunderbans homeless in the islands of the
after the final phase of Sethusamudram Canal is
world's largest delta by 2020. The director of the
completed within the next 10 years, only ships
School of Oceanography, Saugata Hazra, said
with maximum 25,000 DWT will be able to pass
"About four lakh people are already affected in
through it. "T:bis means even our aircraft carrier
the past few years and more than 600 families
INS Viraat and many other deep drafted vessels
have migrated to other islands due to erosion
may not be able to negotiate the canal". Mr
and coastal flooding, while crops and properry
Unnithan said.
worth Rs. 950 million have been damaged. " We
have done a study based on the GIS model about
The worst affected will be local fishermen on the
the environmental situation in the Sunderbans.
ground that the existing fishing areas of local
The sea level is rising there relatively at 3 . 14 mm
fisher folk would be reduced considerably once
per annum and the sea surface temperature is
the canal is opened for traffic. The Society also
rising by .019 degrees Centigrade. (Sunderbans disputes the employment gene�ation factor
under threat, TH.B, 6.06.04, EOlb) pointing out that dredging, marking and
buoying being high tech activity, not much
The proposed mega project of Sahara India
employment generation can be expected.
group in the Sunderbans Island, which has been (Sethusamudram project draws flak from
approved by the West Bengal government, environmentalists, Sanjeev Kumar, TH. B,
might face resistance from environmental 30.09.04, EOlb)
groups and Medha Patkar as they fear the project
would spoil the fragile ecological system of the E 01 d Wildlife

�I
region. Sahara India's CEO Subrata Rov' who The state government will set up the first marine
- '

met Chief Minister park o f the country, costing ardu nd Rs 16 crores,

i
"

at Bri tona, with an objective to give boost to the issue. These have been brought to a head by the
state tourism. The Chief Minister, Mr. Manohar recent High Court order. The court directed that
Parrikar has already given the green signal to the the cubicles used for the sex trade be closed and
proj ect conceived by the Goa Tourism rescued commercial sex workers be deported to
Development Corporation (GTDC), during the their native State. The meeting clearly brought
meeting of the board of directors of the out the feeling shared by the NGOs that the State
corporation held in the city. The project would is doing nothing with regard to the rehabilitation
be completed within a period of 2 years. of the commercial sex workers (CSWs), and
Although the marine park would be set up on alleged that there have been human rights
the lines of such parks existing in Singapore and violations of the CSWs by the State machinery.
Middle East countries, it would display a special (NGOs take up cudgels to defend sex workers,
character linked to the land. The park would H.G, 14.01.04, E 41)
include a number of recreational features such as
speed boa ts, water s p o rts, b o a ts with A National Human Rights Commission (NHRC)
entertainment performances and so o n . report on 'Trafficking in Women and Children in
(Nation's first marine park to beset up at India' has said that the existing system in the
Britona, H.G, 01.01.04, E01d) spheres of prevention, p ro te c t i o n a n d
prosecution was not adequate to tackle the
Twenty conservation groups from across Asia complex problem in a holistic and right manner.
have formed a network to combat illegal trade in The report, prepared by the Institute of Social
wildlife. "The illegal trade in tigers and turtles, Sciences with the financial support of UNIFEM,
as well as the illegal lumbering of tropical wood, r e c o m m e n d s t h a t a l l a n ti - t r a ff i c k i n g
are serious in Asia and most of them are interventions should adhere to the human rights
exported to Japan, " said Masyuki Sakmoto, paradigm to ensure that the rights of the
Chairman of Asian Conservation Alliance Task · trafficked persons are protected. It is imperative
Force. We would like to contribu te to eradicating to understand that this gross violation of human
illegal trade through the international exchange rights occurs due to many socio-economic
of information among conservation groups. To factors that add to the vulnerability of the
prevent wildlife such as elephants, tigers and victims. The study suggests a strong link
rare bird species from going extinct as a resul ts of between trafficking a.T1 d migration with an
the trade, the net work hopes to build a regional added dimension in trafficking because of
conservation framework such means as unconventional means of commercial sex
exchanging information on illegal deforesting exploitation like sex tourism and exploitation in
and smuggling, and conducting l ong-term massage parlours and beer baTs that has created
observation surveys. The alliance consists of a great demand for children. Similarly, there is a
civic groups from china, India, Indonesia, Japan, clear link between trafficking and those reported
N
Malaysia, Nepal, The Philippines, Russia, ffilssmg. "-

_ _

Singapore, South Korea, Taiwan, Thailand and (W�t�en, child traffic�ing: call for communihj
Vietnam. (Illegal Wildlife Trade, FE, 08.08.04, polzcmg, TH.B, 25.08.04, E 41) --I

E01d)
E 42 Child Prostitution/Child Sex Abus e
E 41 Prostitution and Trafficking (General) How dare they use their position to identify
Major social organizations in the State have tourists more commonly called foreigners as
jointly formed a Forum for Justice in Baina, potential pedophiles brushing aside all the good
which will tackle the problems of commercial work that is done by them like ' sponsoring
sex workers, includin g rehabilitation and educational needs, clothing them and feeding
human right violations as they feel that the there families, privately run . organization

I
government has not defined its stand on the funded purely by tourists etc.
Perhaps we should sit down and read the papers
Public awareness and their co-operation
more often. Over the past few weeks there have
not a witch-hunt. Anyone can hand out leaflets
been several rape cases against minors and one
every one can blame others for their failings.
particularly shocking story a twenty year old
Every day we see children digging up roads,
man sexually abused a five month old child, a
working on building sites, begging
school care taker raped a minor, a gang rape etc.
in the markets this is child abuse in any
ete. All these crimes were committed by locals do they
language. Where are these children 's rights officers
not also fall into the category of paedophile? At the
and organizations? You do not need to be a
beginning of every tourist season the word
detective i n finding them, as they are
paedophile comes out and beach shacks are in
everywhere. As for the tourist police, well we all
the words of one owner forced to display posters
know what goes on there; if the children can't
stating that tourists seen with children are to be
pay their fee they get phYSically abused we have
reported to the Police. The, shack owner did not
all seen this yet it is allowed to continue
know what a paedophile was! Perhaps the
reporting the officer means that some one else
tourist minister should inform all tourists not to
benefits from this racket. Abusing children
make contact with children as they could be
physically or verbally is a diabolical crime;
questioned about their intentions relating to
pedophiles are a global menace and not
paeodphiles. I am certain that the tourist
perpetrated by tourists alone as the article
economy would come crashing down. Sex
indicates. (Tourism and children, why blame,
crimes against children are truly hideous and
H.G, 23.01.04, E42)
Should be stamped out but firstly you need

Interview with Asha Ba}pal


Well-known child rights activist Asha Bajpai was nominated by the Mumbai high court to study the conditions in
children ' s remand homes in Maharashtra. VVhile on the Maharashtra State Monitoring Committee on Juvenile Justice, she
probed child sexual abuse cases. Here, she tells Olav Albuquerque about the lacunae in our laws relating to children, and
how tofix them.
Wha t are the conditions like in children '5 insituations?
It is sad that juvenile justice system in India lacks a sense of care. Conditions in children's institutions are
appalling. There are children who've never heard a story being told. The punishrnents are barbaric to say the
least. It is a matter of concern that many children are in institutions just because their parents are unable to
provide them food, clothing, shelter and education. The families of such children should be empowered so that
the children can remain in the families. The laws prohibit the police from detaining juveniles. But some children
told me whenever there are thefts in trains, children found at railway stations are tortured in the police stations
to give information. Children who work as shoeshine boys, vendors, rag pickers and porters have reported how
they are forced to pay hafta. For street children, extortion is an integral part of the process. �
How effective are the provisions relating to child sexual abuse? What sort of legal reforms are ntieded? How do
you make courtrooms child-friendly?
,",.-
Child sexual abuse can take place anywhere - in the family or neighbourhood, in school or on the street. And the
perpetrator can be anyone - a close family member, a neighbour, an uncle, a cousin, a friend, even, a teacher or
doctor. The abuser, generally a male, usually violates a relationship of trust with the child, taking advantage of
his power and position. Girls are more vulnerable. We still don't have any comprehensive law on child sexual
abuse. Such cases are generally tried under different sections of the Indian Penal Code, 1860, .which were not
enacted with the child in mind. The child has to relive the traumatic experience before the police and the courts.
The medical examination is insensitive. Medical reports are vague. The aggressive nature of cross-examination
tries to prove the child victim is a 'liar'. The trial drags for years and those who abuse children often get away.
The language of the child needs to be understood by the legal system. A child's testimony should be permitted
through video recordings. If video conferencing can be used for criminal offences, why: not for the child?
Amendments in the Indian Evidence Act and procedural laws are needed.
What is the extent of child prostitution in India? Are the provisions of IPC and the Immoral
Traffic Prevention Act, 1956, adequate in dealing with it?
Child prostitution does exist in India, Sexual exploitation of children, especially girls, is a global,
multi-billion dollar industry and an organized crime. India has the dubious distinction of being the
source, transit and destination c ountry. The child is also a victim of paedophiles who pose as
tourists. A significant aspect of child sexual exploitation is Internet pornography. The IPC and the
Information Technology Act, 2000, have their uses but they aren't adequate in terms of putting an
end to the practice. We must evolve a rehabilitation policy for sexually exploited children and work
towards international treaties, which facilitate a sharing of data on paedophiles.
Is the new Juvenile Justice (Care and Protection of Children) Act, 2000, an improvement over its
predecessor, the Juvenile Justice Act, 1986?
The Act aims to adopt a child friendly approach. Although it has its limitations, it goes some way in
addressing issues of inclusion and mainstreaming - by way of group counseling - as well as finding
alternatives in{he form of family and community for these children. A significant feature of the Act
is that adoption, foster care and sponsorship are providing as alternatives to institutionalization for
children, irrespective of religion. But the Act needs to be implemented in the right spirit.
Isn't there a needfor one comprehensive law to protect children?
It's true that in India, the age at which a person ceases to be a child varies under different laws. The
lack of uniformity in definitions of the child in different legislatio:Qs and government documents
affects interventions and service delivery for marginalized children. Some o f these age limits
appear to be arbitrary. We have ratified the Convention on the Rights of the Child and, ideally,
anyone under the age of 18 should be regarded a child. We must also work on the implementation
side, because that is an extremely weak area. Ironically, those who flout children's rights are also
entrusted with the task of enforcing the laws.
Will a National Commissionfor Children help in any way?
The idea has come up from time to time. To be effective, however, such a commission must be
conceived as an independent body, a."1
. d given the task of overseeing the implementation of existing
laws for children. It should also review and recast outdated laws for children from a rights
perspective. Unlike other commissions, it should not be just an advisory body without any power. It
should be vested with investigative powers and be in a position to stop ' violations of the law and
provide justice to the child.
Uuvenile Justice, ToI.B, 08.03.04, E 42)
Child rights groups have welcomed the from Rs. 5,000 to Rs. 1 lakh and or �ered the

Supreme Court's stay on a Bombay High Court release of the couple. The High Court ruling
order releasing the Swiss couple, Loshiar and said, commuting the sentence sent out tl}e wrong "-
Wilhelm Marty, who were convicted three years d
message internationally - that in In ia such �
ago by a sessions court in Mumbai of using street abuse could go unchecked. ':"';
children for child pornography. The Bombay
High Court had commuted the seven-year Nishta Desai of the Child Rights Group in Goa, a .�


sentence of the couple to three years and three destination that is increaSingly being frequented
months - the time they had already spent in jail ­ by paedophiles, said that paedophile was not (
increased the compensation amount for the six specific to Goa but was prevalent in other tourist ®
victims spots. In response to campaigns by groups such
as hers, the Goa

I
Government has enacted the Goa Children's Act
2003, which defined sexual offences against South Mumbai, in 1999. (British paedophile
children and laid down stringent punishment. extradited, TS.D, 07.09.04, E 42)
Unfortunately, rules under the act have still not
been notified nor have the institutions, such as a E 71 National parks and Sanctuaries (General)
Children's Court, been established to implement The Sunder bans management programme,

the law.(Stay on release of Swiss couple hailed, which is being jointly carried out by India and
TR.D, 03.04.04, E 42) Bangladesh, under funding by the United
Nations Development Programme (UNDP), will
A suspected pedophile, booked by Mumbai have global participation. Bangladesh forest
police for alleged child sexual abuse in 2001, was officials will get to learn important aspects from
extradited from USA. The US federal authorities the Sunderbans Biosphere Reserve on how to
held Allan Iohan Water, facing an international deal with a stray tiger. Another important aspect
arrest warrant by the Interpol, some months ago will be training the customs officials about
when he was on way to the Pacific island of wildlife artides that are now a thriving trade.
Bermuda. An extradition process was initiated It has been a path breaking experience," claimed
by India thereafter. Colaba police in south M. A m i nu l Islam, UNDP s u s ta i n a b l e
Mumbai will formally place him under arrest
development advisor. Nowhere else in the
today. Water along with fellow Briton Duncan
world have two countries jointly decided to
Grant has been accused by Mumbai police of
conserve an ecosystem which is the world's
sexually abusing street children who had taken
largest mangrove forest. (Sunderbans plan will
refuse in the children's home, Anchorage
Shelter, which the duo had set up in Col aba,
go global, TOI.M, 20.01.04, E71)

G COASTAL REGIONS
j G 00 Coast & Ocean (General) (Goot. gets tough on CRZ violations, NT. G,

1
i
Irregular nesting by the Olive Ridley sea turtles
on the Orissa coast is causing concern to wildlife
9.02.04, G10)

I enthusiasts. They fear that the turnout of his The Centre would take a fresh look "on firm
!
endangered species may fall this year. The scientific principles" at the entire range of issues
'I,;
1
observers monitoring the coast say that the concerning coastal environment management
i nesting is much, lower level compared to the and the 1991 coastal regulatory zone notification
I� previous season at the Gahirmatha, Devi and that ruffled the feathers of several
ministers, Union envirollIDent and forests
chief
Rushikulya river mouths. A large group of
turtles was noticed at Nasi Island in the minister A. Raja said. The major task had become
l� necessary also to ensure that the live)ihood of the
Gahirrnatha marine sanctuary area. But turtle
,I � lovers are keeping their fingers crossed as no
poor people living in coastal areas�· was not hit


due to the 1991 notification, the minister said,
nesting had taken place at the Nasi island in the
Conceding there were "certain difficulties"
past two years. The turtles, which have
implementing the CRZ notification, particularly
congregated since October, are also getting
where it impeded certain kinds of development
' '.i
killed in the nets of mechanized fishing boats.
works without improving environmental
"At least


3,000 turtles have been killed this
conservation, Mr. , Raja said his i ministry had
season, including 838 at the nesting site near the
decided to review the issue "on firm scientific
Devi river mouth in Puri district. Not a single
principles" and had set up an eXRert committee
trawler uses he turtle excluder device. This is a
under agriculture scientist M.s. Swaminathan to
violation of the orders of the Orissa High Court
come up 'with "practical recommendations."
,

and more than 1,10,000 turtles were killed the

,
(Review of coastal zone underway, says A.
past 1 1 y e a r s . ( I r r e g u l a r n e s t i n g by Raja, AA.B, 9.06.04, G10)
G 101 Kerala
Did the IIDC disinvestments spree wrap up a businessmen and lawyers too. (Title Deed Ghost
sale without a title deed? Top honchos of Indian Haunts Halcyon Castle, M. Sarita Varma, FE.B,
banking and corporate landscape like RBI 21.06.04, G10)
governor YV Reddy to Tata group chairman
Ratan who checked into Kerala's Kovalam beach G 40 Industries on the Coasts (General)
would have been unaware of the mystery The Exim Policy of 2000 paved the way for what
brewing around their lodgings. VVho owns seems to be an industrial takeover o f the
Halcyon Castle? For those fragile on fables, a country's coastline. Gujarat, Karnataka and
halcyon is a kingfisher that nests on the sea,· Orissa have been working to get the Centre's
Halcyon is symbolized as the icon of calm approval for the creation of Special Economic
among storm, but nobody can now dispute that · Zones (SEZs) that are seen as a boon to a
eggs of a long-running controversy are hatching liberalizing economy. Recently, the Union
around the sea-nestled Halcyon Castle. Cabinet approved the proposal for a Central
legislation for the establishment of SEZs . The
The Castle, visibly inspired by British fairy tale government machinery certainly works with
castle illustrations, is part of the 65-acre Ashok speed and efficiency in some cases. But when it
Beach Resort, once owned by ITDC. The castle comes t o making changes in the L a n d
used to be the summer resort of the erstwhile AcquiSition Act 1864, and finalizing a national
royal family of Travancore. The sale of the resort rehabilitation policy, urgent steps warranting
to the Oman based Gulfar group for Rs 48 crore
immediate action by development planners,
brought the Halcyon
there has been practicall y no action.

Castle to the new owner's hands. Ashok Beach


These assume great importance as more and
doubts Resort is now the 360-bed that Kovalam
more tracts of land, primarily in tribal! rural
Hotels, managed by Le Meredian Group. "The
areas and rich in biodiversity, are converted into
sale of the Castle and all its papers are under
r e v e n u e-garneri ng faCTor i e s w i th their
detailed examination by government's legal
inhabitants pushed to the margins of well being.
counsel," says Kerala chief minister AK Antonv.
Many areas demarcated for development of
If Kerala gdvernment did not make a claim f�r
the Castle in 2001, that was only because it could SEZs also happen to be fragile ecosystems. These
not produce the Title deed, say state government are the coastal areas, whose dynamic ecological �
officials. Gulfar Group, who holds possession of nature and productivity are yet to be fully
the Castle, initially had some expansion plans studied and appreciated.
for Kovalam Hotels, roping in even its original
designer Charles Correa. The Downsizing of The importance of the coasts wa.s legally ,
these Plans fuelled to the widespread the established when the Coastal RegulatIon Zone ,
management also did not have the benefit of the Notification (CRZ) was drawn up in 1991 under �
title deed. Gulfar director has announced that the Environment Protection Act, 1 986. The CRZ
the position and any debate around the title notification lays down norms for safe guarding
:...
document is baseless. True to the unruffled the sensitive coastal ecology, recognizing that
water bird it is name after, the castle stands these areas form the livelihood base of ( c:;
foursquare and 2-storeyed at the sea of tho u s a n d s o f t r a d i t i o n a l c o m m u n i t i e s . �
discussions around it. For years, the tawn Unfortunately, the notification was amended in 0 :
l i mestone structure on the palm-fringed mid-2002 to allow for the establishm�nt of SEZs,
defying the very spirit of the law. This was

I
Kovalam sands has caught the eye of geologists
and historians. And now it is the turn of despite the concerns raised by environmentalist
,�;
and social activist groups including the National
:��
and institute, a fashion design centre, a central
F i s h w orkers F or u m a n d t h e B om b a y convention centre, and a jewellery exports unit.
Environmental Action Group.
Looking at the possibilities of growth in tourism
State-level policy documents on SEZs may want once the airport comes up, the State also plans to
to stimulate more efficient use of local resources; set up a recreation park - a Disneyland in South
but can end up affecting the coastal ecosystem. Goa. The State government has not yet acquired
State governments too have been quick to land for the proposed airport, the Chief Minister
identify coastal areas and layout the red carpet has ordered the administration to 'freeze the
for private investors. Investors are promised land' so that the owners do not enter into fresh
such support facilities as transpor t . and deals with builders.
communication, which include roads, ports and
airstrips as also healt h, educational and The Positra SEZ in Gujarat will take up 4,600
entertainment facilities. The promotional acres belonging to poor farmers to house textiles,
advertisements almost always mention that the c h e m icals, phar ma, m e tall ur g y and IT
investors will not have to deal with such hassles industries. The area where the, SEZ is to come u p
as resistance from locals unwilling to give up is not vacant; i t is home to some 18,000 people.
their lands; and the livelihood of the local people The Court ordered that while all other work
and their age-old connections with the
related to the SEZ could go on, the villagers were
environment take the back seat.
not to be displaced until the Resettlement and
Rehabilitation scheme was, approved by the
For instance, the Industrial Development
State.
Corporation of Orissa (IDCO), an arm of the
State government, declares in its communication
In Karnataka, SEZs are planned at Tadri in
that its 'experience and expertise makes
Uttara Kannada, Padubidri in Udupi, and
forestland alienation faster'. It also states that
Baikampady in Dakshina Kannada. Padubidri
acquisition of land for industrial purpose is
was where Cogentrix was to set up its power
treated as being for 'public purpose' and that the
plant. The Barge Mounted Power Plant ( BMPP)
emergency clause of the Land Acquisition Act is
and the expansion of Tadri port have been, and
used to speed up this process. If indeed the
continue to be, severely criticised by the local
'rights' of the coastal population are to be
people for the negative social, economic and
upheld, scarce land should not be handed over
to private 'external' parties and for purposes environmental impacts they can have. Tadri is
other than for residences and the livelihoods of situated on the banks " of the fertile and
� t r a d i t i o n a l fi s h i n g a n d a g ri c u l t u r a l productive A ghanashini estuary and the
,
communities. villagers fear the fallout of such 'development'

���
�� A l l o wi n g SEZs here often means l a n d
on their rice-fields, saltpans, fisheries, clam
T
collection and mangrove diversity. adri, in fact,
acquisition and conversion of land use with no had a ship-breaking unit' in the early 1990s. This
c o m m e n s u r a t e benefits to t h e affec ted was shut down under public pressure, on
population and a loss of their livelihoods. grounds of ecological damage, and is reflective
of what the people of this area consider more
The Goa government plans to convert the whole important.
of Pernem taluk into an SEZ. As part of this,
plans for constructing an international airport at The other important issue is that of impact
Mopa village in Pernem have been cleared. Also assessment procedures. Only 'Some of the
planned in the SEZ are a cyber city, a film city projects proposed in the SEZs may come within

-
r
the purview of Schedule of the Environment
Impact Assessment (EIA) notification, 1994. proposed legislation would cover a number of
existing pieces of legislation. Hopefully, the
These projects will have to comply with the other ministries will include Environment and
conditions of organizing a public hearing and Forests, Rural Development, and Tribal Welfare,
allowing local people to voice their objections and they will have something to say during these
and suggestions about the project. The State 'consultations' to protect the constituencies' they
government assesses projects not falling in this are responsible for.
(A takeover ofcoastal areas,
schedule, and the clearance processes does not Manju Menon from Kalpavrisksh BL.B, 20.02.04
mandate a public hearing. Instead of assessing G40)
the pollution load and other aspects of "
individ ual projects, it would make more sense to Beneath the calm exterior of this Bay of Bengal
carry out the environmental and social impact coastline, there is much abuzz. In more than one
assessment of SEZ as assessing the cumulative way, Visakhapatnam is living up to its catch line
impact is crucial. Further, such an assessment - the city o f destiny. After a period of relative
should also be juxtaposed with carrying­
stabilization, the city and its suburbs are
capacity studies of the area. As per the Orissa
readying up new plans, taking on the
and West Bengal policy documents on SEZs, the
development binge with renewed vigour. The
Town and Country Planning Act of an area will
blueprint of the new avtaar is readying for a sea
have no bearing on the SEZ. These zones are to
change of Visakhapatnam, the second largest
function as independent industrial township
areas and they will not be under the Municipal city of Andhra Pradesh. This first step in this
Corporation, the Gram Panchayat or any other sector can be seen in the projects that are being
local body. This is against the spirit of the 73rd signed up, especially in the knowledge sector.
and 74th Amendments to the Constitution, Companies that are buying land in Hyderabad
which give local bodies powers of self­ are being encouraged to take up the second stage
governance. These constitutional provisions of investment in cities like Visakhapatnam.
were designed to allow the local people tohave
c o n t r o l o v e r t h e i r s o c i o e c o n o m i c, The coastal corridor of Andhra Pradesh is the
\
environmental and political governance. route to what promises to be a boom time for
towns located in this belt. The corridor
Associated With development of SEZs are golf encompasses vast industrial land between
courses and hotels at some places. These too Visakhapatnam and Kakina�a. The area is
have been allowed in the sensitive coastal areas endowed with rich natural resources and quality
that were protected under the CRZ regulation infrastructure, which includes a natur!'ll major
until the amendment of May 2002. The CRZ port providing fast access to the markJts of the
amendment of 'May 21, 2002 states that Far East. A ndhra Pradesh I n du s tr i a l
" nonpolluting industries in the fiel d of Infrastructure Corporation (APIIC) has initiated
information technology and other service some major projects in Visakhapatnam, which
industries in the Coastal Regulation Zone of should hopefully be a catalyst to the future
Special Economic Zones, (SEZ)" can be allowed. grow t h of the area. This incl u d e s the
development of Gangavaram Port, Pharma city,
In "First draft o f SEZ legislation ready" (Business Visakhap a tnam I n d u s trial Water Supply
Line, August 22, 2002), the Commerce Secretary, Company and Development of IT Park. The IT
Mr. Deepak Chatterjee, was quoted as saying Park is under state-private partnership and
APIIC has been named as the nodal agency for

I
that his Ministry would hold extensive
consultations with other Ministries as the the project.
A Special Economic Zone is being developed on Transition of industrialists who unable to carry
9200 acres of land that stretches from on with the ind ustrial activity; and setting up of a
Atchut a p u r a m to R a m b i l l i m a n d a l s o f coastal environment agency to monitor the
Visakhapatnam district. Land acquisition is in its environmental impact assessment of industries
final stages. We have already received some in the region. Such an agency should have the
encouraging enquiries but a private developer credibility to monitor the environmental impact
will do the final plan and marketing. assessment of major industries in the region.
The agency should upgrade information on the
The coastal corridor of Andhra Pradesh IS industries of the region and their environmental
impact. It should give a systematic and objective
holding out exciting new opportunities in a
. view of the development of industry and
range of sectors. The time is now ripe for
environmental condition to the public. (Coastal
entrepreneurs to draw up their investment plans
Agenda Task Force awaits Govt nod submit
for the region and offers are up for grabs. The
report, A.T. Viunayak, BL.B, 29.02.04, G 40 K)
sun is just rising on the coastal belt and it is
obvious from the ado in the business circuit. G 90 Coastal Tourism
(Good days for Coastal Corridor, ET.B, 4.08.04, Establishment of "Coastal Tourism Circuit" is the
G40) need of the hour to provide better facilities to the
tourists visiting the region. Mr. A. Srinivasa Rao,
G 40 K Karnataka
president of the Kanara Chamber of Commerce
The Coastal Agenda Task Force (CATF') - an
and Industry told though being a major centre of
advisory body set up by the Karnataka
tourist attraction, there is no tourism officer in
G o v e r n m e n t f o r t h e c o m p re h e n s i v e
Mangalore. The Government should introduce -
development of coastal districts o f Dakshina exclusive luxury buses to tourists to visit various
Kannada and Udupi - is ready with its final destinations in the region. Relaxation of the
report, it is waiting for the Government nod for coastal regulatory zone (CRZ) norms is essential
submitting the report. The taskforce has for the development of tourism activities in the
subcommittees on infrastructure development, district. The relaxation in norms could even help
urban development, agriculture and allied in setting up a "marine drive" in Mangalore.
sector development, social a n d h u m a n Setting up of a permanent centre for organizing
"',I d ev e l o p m e n t, i nf o r m a t i o n t e c h n o l o gy trade fair and exhibitions could add to the
'I:i
·1
' .
,
development, industrial and environment, and
tourism d evelopment.
tourism potential of the district. Mr Rao said that
KCCI will support the free trade market
�l � proposed by the Karnataka Government, and
�,

vI
) N T h e s u b- c o m m i t t e e o n , i n d u s tr y a n d will seek the repeal of Agricultural Produce
,I
"

�{ environment of CATF, headed b y Mr. Murari, Market Committee Act. Stressing the need for
� former CMD of Kudremukh Iron Ore Company the introduction of value-added ] tax, he said
Ltd, is likely to focus its recommendations on traders should be educated about this aspect.
major aspects such as setting up of a single (Set up Coastal Tourism Circuit, BL.B, 30.09.04,
'
window exit agency to ensure the smooth G90)
H HILL AND MOUNTAIN REGIONS

H 00 Hill and Mountain Regions of India councils governing the development. Zoning
New constructions are also under way at regulations of these bodies as well as the
Kasumti about 7 km from Shimla, while the regional development authorities be carefully
Himachal Housing Board is acquiring land for analysed . Property should be bought only in the
development at Wakna Ghat, 30 km from the zone where housing commercial development is
state a capital. Shimla's central town The Mall, permitted. Care should be taken to avoid no
Lower Bazaar and Ram Bazaar is choc- a-block development zones and ecologically sensitive
with old commercial structures and is not a zones for development of the property at hill
favoured destination for get- away properties. stations. (Many hill stations in India have their
On the other hand, those adventurous enough to environmental management plans (EMP) in
risk a brush with the law, can opt for benami place. Development should be done in strict
properties where the title in the name of 'local'. A accordance with the suggestions made in those
favourite is the small town of Barog, around 60 plans. Hill Stations in India are coming up with
km off Shimla near Solan. The Chandigarh­ guidelines to protect built and natural heritage.
based Milan Properties had launched full-scale (Buyers must learn to preserve hill stations,
cottage and estate project at Barog for investors Gurbir Singh, ET.D, 25.2.04, H 00)
and outsider's be fore the state government got
H 30 Himalayas (General)
wise to the el developer's tactics. In the Deep There is no denying the fact that river Ganges
South, Kodaikanal a three-hour drive from forms an integral part of our heritage and
Madurai offers some interesting projects. The civilization. Since time immemorial, the Ganges
advertising agency Ogilvy some- time ago has been home to hundreds of wild animals and
acquired a 55-acre property from Max worth, a birds where they thronged and made India rich
subsidiary of Sterling Resorts b in lieu of debt in wildlife. A number of steps were initiated for
settlement worth Rs 1 .5 crore. This property, 21 its protection, such as declaratiop.5 of national
km from the main Kodai town, has now been parks, wildlife sanctuaries in Garhwal and a
developed into an 'eco-village' with one-acre forest college in Dehradun. In 1935, Lord Haily
properties. The two projects - Ogilvy Eco-Village declared 1,500 square miles of the area around
and Ogilvy Tangerine have been priced at Rs 14 river Ram Ganga as a sanctuary; which later on
lakh and Rs S.5 lakh each. Seeing the potential was declared the National Corbett Park,
the group has also launched a is second 'green' probably one of the best forests in the world .
development closer Kodai n dubbed 'Misty Taking the good wishes and, Players of millions
Meadows' (Rs 16 1akh/ acre),'Green Orchard' (Rs of devotees, this mighty river after a journey of
IS lakh/ acre) and 'Kodai Eco Habitat' (Rs 24 around 2,700 kilo meters finally falls into the Bay
lakh/ acre). of Bengal forming the biggest" delta of the
world. (The Wilder side of Himalayas, the
Most of the hill stations in India have urban local Ganges is home hundieds of animals and birds,
bodies such as Municipal councils or hill JoeILyall, FE.B, 4.3.04, H30)

I
KKAR NATAKA

K 10 Policy, Economy w e r e a l s o u n d e r a c t i v e g o v er n m e n t
Presenting a revenue surplus budget for the first consideration to ensure quality power supply all
time in eight years, Karnataka deputy Chief over the state, particularly in rural areas. The
Minister Siddharamiah, who also holds the minister promised to take a decision on ensuring
finance portfolio said, " this signals the at least 20 hours three-phase power supply to all
commitment to reform state finances and to rural feeders soon after ascertaining the
ensure that the current expenditure is met by generation and demand position.
current revenues." Budget 2004-05 envisages a
revenue surplus of Rs 72.84 crore. "Increased While work on the 220 krn Mysore-Bantwal state
revenue balances in future years will enable highway, costing Rs 226 crore, is expected to
creation of additional assets and also ensure that start soon, tenders have been approved for
the borrowings are only used for capital taking up the 80 krns Medak-Shahapur road at a
expenditure. The fiscal deficit is reined in at Rs cost of Rs 86 crore with Hudco assistance.
4246.64 crore compared to Rs 5564 crore in 2003-
(Karnataka plans Rs. 1,200 crore-power pump
04," Total receipts are expected to be Rs
in, ET.B, 1 7.08.04, K12)
320065.99 crore, comprising revenue receipts of The State Government decided to review the
Rs 5510.31crore and capital receipts of Rs 6555.68 controversial Bangalore- Mysore Infrastructure
crore. Total expenditure for the year is projected
Corridor (BMIC) project, meeting midway the
to be Rs 31591.88 crore, including a revenue demands and counter-demands of the two
outgo of Rs 25437.48 crore and a capital senior political leaders, H.D Deve Gowda and
expenditure of Rs 6154.40 crore. The minister S.M. Krishna. After paying a surprise visit to the
also announced enhancement in allocations in office of the Bangalore Development Authority
key development areas - primary education, here, the Chief Minister, N. Dharam Singh, said
p r i m a r y health c a r e , a g r i c u l t u re, r u r a l the Government had asked the Nandi
development and drinking water. New levies Infrastructure Corridor Enterprises not to take
include a road cess of 10 per cent and up the work on the township projects till the
infrastructure cess of 5 per cent. On the Government clearly spelt out its stand on the
infrastructure front the budget has allocated Rs 5 project. The Chief Minister said there was a need
crore towards the setting up airstrips at Mysore to implement the project to ensure smooth traffic
and Gulbarga in north Karnataka for the current between two cities in future. (Govt. to review
fiscal. (Rs. 72.84 Cr Revenue Surplus Budget For BMICproject, TH.B, 18.08. �4, K12)
K'taka, FE.B, 20.09.04, K10) ,

The Karnataka Government will take steps to


K 12 Infrastructure, Power uf
strengthen the regional air infrastr ture within
Karnataka is embarking on a massiv e the State bv developino- airports and air strips at
0
investment of Rs 1 ,200 crore for improvement of
_

Mangalore, Bellary, Hubli and'" Gulbarga,


_

the power supply system by upgrading as many a c c o r d i n g t o t h e S t a t e I n d u s tr y a n d


as 100 substations this year. The investment Infrastructure Minister, Mr P.G.R. Sindhia. The
could go up to Rs 1,400 crore when completed aim, he said, is to get good industrial
according to Karnataka's Power and Public investments of Rs 30,000 crore ih the coming
works minister H D Revanna. The minister said years. While indus trial growth has been
the government was considering up gradation concentrated in Bangalore, this growth should
of another 100 substations with World Bank be seen in the light of Karnataka's competition
assistance as part of the Programme for with Gujarat and Maharashtra as the top dra'.Y
improving the power distribution system. Plans for investments. However, it was not true that
for installing 6,000 transformers all over the state investors were moving out
I
of Bangalore, Mr. Sindhia said, along with will help link Bangalore, the fastest growing city
industrial growth priority was also being given in the country to other states. The projects, when
to rural development and revival of the small­ completed, will give a major boost to the state's
scale sector. (Karnataka to s trengthen air economy. (Better roads, DH.B, 30.09.04, K12)
infrastructure, BL.B, lO.9.04, K12)
K 33 Child Labour
The Union Government has cleared five road An International Labour Organi�ation (ILO)
projects in Karnataka at an estimated cost of Rs study on the cost -benefit analysis of eliminating
2,545 Crore: Some of the roads are four-lane child labour has found that the net benefits far
highways and some six-lane. The road? outweigh the net costs over a large period of
proposed to come up include a four-lane, 74-km time, with the net financial benefits, worldwide
stretch between KundapurSuratkal on �H 17 at being estimated at $4132.5 billion over a 20-year
Rs 500 crore, the 85-km lane between Bangalore­ span. Even as the study admits that costs during i

I
Kolar-Mulbagal on NH 4 at Rs 400 crore, the'157- the first decade and half would be high, it
km four-lane between Nelamangala-Hassan on emphasizes that the average annual amount
,
NH 48 at Rs 620 crore, Bangalore-Hosur lane on during the first decade pales in comparison with f
<

r
NH 7 at Rs 625 crore and the 19.5-km the burdens currently borne to finance debt r
t
Nelamangala-Bangalore lane on NH 4 at Rs 400 service or the military. ,
,
crore. Another project announced by the Centre
is a 9-km elevated superstructure on Hosur road The study entitled 'Investing in Every Child'
between Bangalore and E lectronics City: says that while the costs might be completed
Estimated at Rs. 400 crore, this project is similar over a period of say 20 years, the benefits
to the one suggested by Mr. Narayan Murthy, continue for as
Infosys mentor. What must be appreciated is m a n y a s 4 0 r-----,;;;:::::J
that IT majors who have been critical of the years past that
abominable infrastructure in the city have point The
aweed to give 33.33 per cent of the funds for this analysis is the
project, while the rest will be met by the NHAI first integrated
and the State Government. s t u d y of t h e
economic costs
Roads constitute an important part o f and benefits of
infrastructure and despite India having the third e l i m i n a t i n g L....-
________ "-----'

largest road network in the world, the growth of c hi l d l a b o u r .


the road network has not kept pace with the throughout the developing aitd the transitional
growth of road traffic. Vehicle population in the world, covering in its ambit, tr,ansition al
country has grown almost hundred-fold and countries such as Asia, Latin Am�rica, Sub­
passenger and freight traffic has increased Saharan Africa, North Africa and West Asia.
exponentially: The need for adequate road
Pointin g out that as per estimates made by the
infrastructure for a country that hopes to become
ILO in 2002, one out of every six children aged
an economic super power has to be taken
between 5 and 17 is exploited by child labour
seriously by the government which must speed
worldwide, the study, conducte d under the
up projects already on the anvil, including the
International Programme on the Elimination of

Golden Quadrilateral project. Passenger and
Child Labour notes that many of these children
freight traffic on roads is growing and moving
are forced to risk their health and their lives and '::
away from the traditional rail route and
mortgage their future as productive adults it also
substandard and inadequate roads will cost the
inc l u ded within its purview; 10.8 million

I
exchequer and the economy: These projects
children in hazardous
should be initiated without further delay as they
occupations and between eight and 20 million in the Government for the development some
'unconditional worst forms' such as trafficking, Hoysala temples and tourist places, including,
bonded labour and prostitution. Hazards as per Ramanathapura, Shanthigrama,
the study could derive from excessive workload Sriramadevarakatte and the Gorur Dam. The
and physical work conditions. For the child Department of Tourism will promote
direct benefits are education and improvements Shravanabelagola a s a tourist- destination
in health. (ILO offers 'feasible' funding to during Mahamastakabhisheka i n 2006. A
eliminate child labour, Indrani Dutta, BL.B, proposal for the develo pment of
6.02.04, K33) S h r a va n a b e l a g o l a w i l l b e s e n t t o t h e
K 50 Tourism/Tourism issues in Karnataka Government soon. A sum o f Rs. 60 lakhs was
World Tourism Day become an occasion for the released to a private company to prepare a plan.
district administration and the Department of However, the proposal did not materialize for
Tourism to ponder why the tourism potential of some reasons. (Tourism potential ofHassan yet
the district has not been fully tapped. According to be tapped, TH.B, 27.09.04, K50)
to an estimate, 2.50 lakh tourists visited the
K 51 Coastal Tourism
district in 2003.
Jungle Lodges and Resorts Ltd (JLR), eco­
tourism arm of Karnataka, will offer ayurveda
Inadequate facilities "Tourists complain of
facilities in its latest property Om Beach Resort
inadequate facilities in the district, especially at
in Karwar in a joint venture with the Delhi-based
Belur and Halebeed, which are known for
architectural splendour". Lack of direct public Kairali group. This is one of the two projects that
transport from Bangalore to Belur is a major JLR has signed with Kairali during the Coastal
problem. Investors Meet held at Karwar. Various
Apathy The famous monuments are crying for ayurvedic and holistic treatment packages
attention. The Channakeshava Temple at Belur incl u ding s pecial .--=�----::::---,
and the Hoysaleshwara Temple at Halebeed P a nchakarma
have become victims of official apathy. treatment for
Miscreants have damaged many monuments. arthritis and facial
The Archaeological Survey of India (ASI), which paralysis will be
has been entrusted with the responsibility of offered under the
preserving the temples at Belur and Halebeed, s u p e r v i s i o n 0 f L:=..._.....::��..:::!!.L�""--.J
has done little in that direction, according to the qualified d o c tors
people of Belur. and trained therapists. The resort will also
Rigid rules Officials of Department of Tourism provide different actiyities including visits to
blame the rigid rules of the ASI for the poor nearby temples of Gokarna, Mur$feshwar and
infrastructure at Halebeed and Belur. A senior Mookambika, water sports such a4 para-sailing
official says that though the department has sent and speedboat rides and also sightseeing to
many proposals seeking better, infrastructure, nearby tourist places. (Ayurvetfa resort in
the ASI ignored them. The officials stressed the Karwar soon, BL.B.. 27.07.04, K51)
need for a comprehensive plan for the
development of Halebeed and Belur K 53 Heritage Tourism
Recovering With one of its foot firrrJy established in Kerala's
The Assistant Director of Tourism, Aadilakshmi, territory, the CGH group of hotels is extending
told the tourism industry, which suffered owing its ambit of operations into Karnataka in a big
t o the Cauvery agitation last year, was way and, Karna::aka is emulating Kerala's
recovering with a 20 percent increase in the pioneering public/pri'7ate initiative to harness
tourist influx this year. A Rs. 26.34-crore the latent tourism potential lying dormant
proposal has been sent to that State. The CGH group of hotels sign an Mo C
with the Karnataka Tourism Department in a bypass and traffic would be hit at the tollgate.
Bangalore, for developing a heritage resort The members of the delegation of the World
property at world heritage site of Hampi. It will Heritage Committee which visited Hampi last
be a joint venture with the Karnataka State June had stipulated that Anegundi bridge
Tourism Development Corporation, where the should be used temporarily and demolished
State's equity will be in the form of 14 acres of within five or seven years.
prime land in the backdrop of the world famous Delay in work: The construction work was taken
Hampi site. The Hampi property, which is slated up in May 2004 and was scheduled for
to open up in March 2006, will be the second completion by July 21, 2004. But it does seem that
property of the group in Karnataka. Work is the construction work will take two more
already in progress at the 'Om' beach resort at months for completion. If the bypass road were
Gokarna, which is slated to open in March 2005. laid and vehicular traffic allowed, it would not
The environmental clearance and coastal only aid in the construction of the hanging
regulations zone clearance have already been bridge but would also be a step towards
obtained for this project and work is progressing including Hampi into the World Heritage List
in full swing. It also plans to extend a tourism again. (Hampi remains on world heritage
circuit linking the exotic destinations of endangered list, Sripad Joshi, DH.B, 29.10.04, K
Karnataka with the well-trodden paths of
53)
Kerala. To provide a rich and vibrant experience
K 59 Golf Tourism.
of history and archaeology to the tou rists, the
It's a concept that fits with Karnataka tourism's
spiritual and yoga experience of the 'Om' beach promotion plans to a 'tee' and intends 'put" ting'
resort at Gokarna, with the backwaters, the s tate on the golf lovers' circuit. Golf is now a
ayurveda and culinary experiences of Kerala. global lifestyle sport: stress-buster, place-to-be
(CGH group to sign MoU with Karnataka seen and, the outd oor boardroom where
Tourism, BL.B, 27.0B.04, K53) strategies are planned and deals clinched. With
three greens in Bangalore and at least 9 s cattered
The 28th convention of the World Heritage across the s tate, Karnataka is attempting to pitch
Committee held in Suzou City, China, has itself as the ideal location for golf lovers in the
expressed its appreciation at the measures country and abroad. "In addition to the regular
initiated by the state government to develop promotions , Karnataka tourism is also trying to
Hampi, while deciding to retain Hampi in the pitch its other strengths for niche segments. We
endangered list. The State government's action have noticed that many business travellers to the
to postpone the construction of the hanging city prefer golfing as a wee.!< end or leisure
bridge between Hampi and Anegundi till a activity to all-else. We are trying to tap this
bypass road is constructed has come in for segment and expand it as a package," l touris m
special praise. department sources said. Golf tourism, purely as
Bridge will do hann: The committee had opined a tourism concept, is yet to pick up. However, we
that the construction of the bridge would harm get a lot of guests who come to the city on
the monuments in Hampi. The panel had business and want to play golf and the number is
suggested the construction of a bypass and stops increasing. There is huge potential for this kind
the construction of the bridge until the road is of tourism because Karnataka has a large
.
laid. If the bridge is constructed without a number of cou rses," says Karnataka Golf
bypass, vehIcles moving towards Hampi from Association president D. Pritham Basappa. On
Anegundi have to pass through Harishankar the other hand, The Karnataka Tourism Forum
tollgate. The committee had objected to this on (KTF) feels small and medium golf tournaments
should be held regularly to create interest, before

I
the ground that Hampi's natural beauty would
be marred if the bridge was constructed without pitching the tourism aspect.
Once the golf circuit is made aware of the
facilities, golf tourism will pick up on its own.
3
Travellers Prefer Golfing As a Weekend or
Leisure Activity, Anita Rao Kashi, Tol. B,
(Golf on tourism palette: Ready to 'putt', 27.9.04, K59)

L KERALA
L 00 Kerala-Land and People crore to be implemented during the current
Water the non-packaged variety - has now financial year. The State Tourism Minister, Mr P.
entered the shopping list of the average Sankaran, said the State had submitted project
household in Kerala. For the river-rich state, proposals worth Rs 73 crare to the Union
which takes for granted its monsoon bounty that Government for its support and has also
is three times the national average, the price of presented schemes worth Rs 150 crore to
'
water has increased beyond any stretch of Housing and Urban Development Corporation
imagination. For initial installation for well­ (HUDCO) for its backing. Bedside's, the State's
water (not purified), the cost comes to Rs 300. If tourism department will spend approximately
the private water-dealer's well is close by, it Rs 74 crore of its own funds on various tourism
costs about Rs 40 for a 20-litre jerry can supply development initiatives, he added. Also on the
per day in recurring costs. The price increases if cards is a proposal to create a 'special tourism
it is to be transported to faraway places. economic zone' along the coastline - from Poovar
Drought cuts across all walks of life. For to Veli in Thiruvananthapuram district. This
instance, many eateries in Alapuzha, the project, possibly the first of its kind in India, has
heartland of backwater tourism, now charge for been (submitted to the Union Government for its
clean washbasins. The lack of water in river approval, the Minister said.
Pamba, near the famous hill shrine of
Sabarimala, forced the 1,000 year old bathing As part of its efforts to develop tourism in the
ritual to be postponed. Even the cremation of an State's Malabar region, Kerala, Tourism will
organize a 'Mappila arts festival' in Malappuram

I
eighty year old woman, who died of fatigue, had
district in January 2005. Similarly, the tourism
to be put off for the lack of water.
department plans to host the 'Mystiques of
I Malabar' travel mart in Kozhikode every two
I The most "Crippling blow came when the state
j
, years, he said. Tourism melas in Wayanad and
I government a p p r o a c h e d the central
\. Kannur districts are some other new initiatives.
J

"
government for Rs 1,359-crore emergency
drought relief but could get a sanction of just Rs
The proposals submitted to the Union ;\1inistry

I �
"
,...
49 crore. Breaking down its own calamity kitty,
the state has put together only Rs 200 crore for
of Tourism focus on areas such as infrastructure
development, quality il11provement, heritage
II operating its crisis management cells. Shift from
preservation and eco-tourism, the MirJster said.
� The development of a Kochi-Kasa�agod tourism
I

paddy cultivation has driven the priorities away
circuit, establishment of a crafts village at
� from conventional water bunds. No study has

'j
V i z h i n j a m n e a r T h ir u v a n a �t h a p u r a m ,


0
been made on the long-term consequences of
development of a cultural village a t Irinjal in
felling of trees and sand mining from riverbeds
! Kozhikode, and creation of a geographical
, for construction activities. What is alarming is
I information system (GIS) for the Kerala Institute
i \;; that the state's drought control measures are
of Tourism and Travel Studies (KIn'S), are
; I' ( �
confined to well-repair and urban water supply.
(Trouble In God's Own Country, M. Sarita
among the 27 projects submitted to the Union

!t �
Government for financia l support.
Vanna, FE.D, 22.03.04, L 00) Establishment of tented accornrnodation at the
Parambikulam wildlife sanctuary and the
L 10 Policy, Economy

I
launch of a luxury yacht are some projects that
Kerala has unveiled a portfolio of tourism­
are a part of initiative to develop the Malabar region
related projects worth approximately Rs 297
as a tourist destination. Integrated, development
of tourism destinations such as Kovalam,
•"
cruise passengers, but also to act as a new crew
changeover port. Towards this end, the port
Kumarakom and Alappuzha, construction of a proposes to set up an exclusive cruise terminaL
building for KITTS, creation of parking facilities The port had sought the support of the shipping
in Kozhikode, development of tourism and tourism ministries in building a passenger
infrastructure in Thiruvananthapuram and so terminal and was also soliciting leading cruise
on are some projects for which Kerala has sought liners in the region to associate with it in
assistance from HUDCO. (Kerala unveils promotion of cruise tourism through the port.
tourism projects worth Rs. 297 cr, BL.B, 18.6.04, Seventeen organizations, including Dubai
L lO) Cruise Terminal, British Maritime Technology,
have responded to the expression of interest
Two Kerala tourism hotspots- Alapuzha and floated by the port for the consultancy service for
Kochi are pitched in a two horse race to emerge setting up the terminaL (Cochin Port Plans
India's first marine, one backed by Belgian Exclusive Cruise Terminal, FE.B, 29.05.04, L 12)
technology and other by Malaysian know how.
The Malaysian firm Trans Resource Corporation The jinx continues for the Rs. 3,OOO-crore
(TRC) which had found the Rs. 245 crore international container transhipment terminal
Alapuzha marina project too cumbersome for (ICIT) plan with the file pending with the Union
its taste, has now turned to pursuing a smaller shipping minister for nearly a month, the last
but more high profile Rs. 60 core marine project hurdle for tins project. According to shipping
in Kochi. A feasibility study on Alapuzha sources, all clearances for the project had been
marina by Chennai based L & T Rambol received and what is needed is 'Just a nod from
bifurcates it as a Rs. 142 crore first phase and Rs. the shipping minister". The contract with the
103 crore-second phase. The Alapuzha marina successful bidder, Dubai Port Authority, ends
despite its array of 3 star hotel, clubhouse and 3 on October20.
km water promenede should be completed in six
months. Much of which venture would make it The Dubai port will have to put in Rs 2,118 crore
first would also depend on the energy that the and the Centre and its agencies Rs 932 crore
new cabinet in Kerala dedicated to it curiously towards infrastructure development. While Rs
enough eve within Kerala Government, the two 33 crore had been sanctioned under the budget
projects are pegged to two separate state plan, the funds could lapse if the infrastructure
ministers, Tourism and ort, promising more development works, like dredging, rail and road
competition in the coming days. (Pitched battle linkages, breakwater activities, etc was not
on for India's first marina, M. Sarita Varma, undertaken. But port authoritit::s say, this work
FE.D, 8.9.04, L 1 0) could be started only after the terminal proposal
got a green signal from the C�ntre. (Kqchi Int'l
L 12 Infrastructure Terminal Awaits Ministry Nod to Get Going,
To capitalize on the boom in tourism industry, Ajayan, FE.B, 1 0.08.04, L 12) I,�

Cochin Port proposes to set up an exclusive


cruise terminal of international standards at an Sagara Rani, the refurbished, air-conditioned
estimated cost of Rs 60 crore, Cochin Port Trust cruise vessel owned by the Kerala shipping and
chairman Dr Jacob Thomas said. Having Inland Navigation Corporation (KSINC), is all
established major cruise destination in the set to sail through the backwaters this Onam
Indian Ocean region by providing seamless season to offer various types of cruises. Sagar a
cruise-oriented service integration, the port has Rani is an old vessel taken over by the KSINC
now embarked upon the task of addressing the from the Sta te Tourism Department and
renovated to suit the modern trends in

I
infrastructure requirements. There was enough
potentials at the port to not only cater to the backwater tourism. . KSINC, had invested
around Rs 2 crore to make the vessel seaworthy
The objective is to explore the vast potential of
(
)�
-;-- -; ;��[>" "
,' :" "
_ :

through the export of coffee alone, has collapsed


-:�;-: :�t �-;-'�
" \t " Z., 0

in the wake of the steady crash in the prices of the


_

backwater tourism in the State as the corporation main agricultural produces of Wayanad. As a
recently embarked on various tourism-related district that produces mainly cash crops and
activities linking waterways. Considering the earns a good share of foreign exchange to the
importance of water-linked tourism, KSINC is national exchequer, the state and Union
also planning to operate tourist boats, government have a special responsibility to
speedboats and luxury yachts. I t recently hired a protect the agro ecosystem and economy of
luxury yacht from abroad to operate in the Wayanad. (Demand for Rs 1000 Crore Special
backwaters for a rent of Rs 10,000 per day and Rs Packagefor Wayanad, FE.B, S.07.04, L56
3,000 per hour. "All these initiatives have been
taken as part of KSINC's diversification L 58 Special Tourism Area-Bekal
programmes and also to remain competitive in After a long promising date, Leela Hotel Group
the changed business environment. The cruises has made an unceremonious exit from the race
include breakfast cruise, lunch cruise, sunset for the Bakel chunk o f Kerala tourism pie. In an
open licensing tender for property licence on
and dinner cruise'. On all cruises, food will be
provided on board. There are also plans to Bakel beach, two other property giants Bharat
include a late night cruise with onboard events, Hotels and UAE-based Holiday Group instantly
replaced Leela's claim. With another hotel major
food etc. (,Sagara Rani' ready for backwater
cruises, V. Sajeev Kumar, BL.B, 19.0B.04, L12) Khanna of Mumbai-based Holiday Inn - signing
a MoU with Kerala government last week, the
L 50 Tourism(fourism issues in Kerala three groups are committed to pumping in Rs
(General) 100 crore investment on the Bakel in six months.
Aided by an allocation of Rs 74.25 crore in the Bakel Resorts Kerala Ltd (BRKL), an outfit
recent State Budget, the tourism industry in sponsored by Kerala government, is the
Kerala is expected to sustain its growth during authority to deal out acquired or negotiated
the coming year as well. The Budget has also property blocks at Bakel beach to interested
made an additional allocation of Rs 10 crore for hotel groups. Taj and Oberoi groups had pretty
marketing of Kerala tourism; Rs 3.5 crore for early laid their finger son two blocks in the BRKL
conserving the State's heritage and a sum of Rs fold. Bharat Hotels and UAE based Holiday
" 47.39 crore has been earmarked for developing Group have agreed to pay licence fee for RS 6
" tourism infrastructure. So far, the State has had a (Resort Site 6) and RS-7 of Bakel on which Leela
good tourist season this year. The revenue from Hotel Group had earlier set its eyes. "Despite
� tourism is also expected to grow - from Rs 950 g e t t i n g t h e fi r s t h e a r i n g f r o m Keral a
crore last year, it is expected to breach the Rs government, Leela Group could not match the
� 1,200 crore mark this year. (Kerala tourism licence-bids made by the other jgroups/ KV
revenue may top. Rs 1,200 cr, BL.B, 20.02.04, L5D) Mohan Kumar, managing director, BRKL told.
The land value fixed for 10.3 hedares of RS-6
L 56 Wayanad
block and 12.9 hectares of RS-7 block are Rs 4.52
A delegation including senior MPs from Kerala
crore and Rs 3.1 crore respectively. (Leela Hotel
has met Prime Minister Dr Manmohan Singh
Group Exits Bakel Fray, Bharat Hotels, Holiday
and sought a slew of measures, including an Rs groups enter the race, ,Y1. Saritq Vanna, FE.D,
1000-crore special package to Wayanad, in the 1 7.02.04, L5B) Kerala gJvernment's Rs 65 crore
wake of the "burning socio-economic crisis"
Bekal Project which involves constructing and
prevailing in the tiny hill district, famous for its running six resort properties in a total land
spices and coffee. The economy of the district, spread of 189 acres in Bekal, a beach destination
which had earned the country foreign exchange
in Kasargod, Kerala, is sef to kick off in
worth Rs 4192.48 crore L'1 the last 10 years September 2004. Four of India's leading hotel
based Holiday Group are involved in the venture, Oberoi through the Oberoi Kerala
development of the project. Of the six resorts, Hotels and Resorts Ltd (OKHRL) and Bharat
Khanna Hotels Pvt. Ltd leads the pack and will Hotels and Holiday Group will be developing
be developing two while the Taj Group through one each. (Six Bekal Resort Projects to kick off in
its Taj Kerala Hotels and Resorts Ltd (TKHRL) September, Savio Rodrigues, FE.B, 3.08.04, L58)

M TAM I LNADU
M 11 Planning, Policy the Nilgiris north division forests. Since olden I

Defending the draft notification making Central days the tribals used to collect minor forest
environmental c learance mandatory f o r· products (MFP) in the above forests and sell
construction of projects by states along coastal them to feed their family members. In 1976
areas, former Union Minister T R Baalu said the LAMP society involving tribals was formed for
Supreme Court, which was now seized of the collecting and selling the forests products. In
matter, could withdraw the notification onlv on J
1994, the tribals formed their own organizations
a direction. . He explained that the power for in their respective villages, and through them,
giving clearance was with the Centre till 1992 they had collected and sold the forest produce.
a n d w a s given to s t a t e g o v e r n m e n t s The testing time started for the tribals in 1997
subsequently. In 1997, the Centre, following when the forest department, Chennai, ordered
several complaints, once again took the power Mudumalai sanctu ary expansion project and
back. " Th e proposed requirement o f under which, the tribal area forests had to be
environmental impact assessments for the merged w i t h the M u d u m a l a i W i l d life
purposes of adequate town planning is a major Sanctuary, compelling the tribals to go out from
step forward," he said, he had cleared 3700 forest inside the forests. The locals have even sold the
projects and 669 environmental projects in 1999- cattle as per the advice of the forest officials and
2003. When he was in office. "My predecessors also have not been allowed to collect cow dung
had cleared only 6655 forest schemes from 1 980 in the forest area also. Earlier, we used to earn a
to 1999," he pointed out. These included the Rs profit of Rs 5 lakh through selling MFPs. (Tribals
348 crore 100 mw project in Ramanathapuram, up in. arms against forest officia ls, lE C,
Rs 436 crore 100 mw power project in North 19.03.04, i\t157a)
Chennai, Rs 977 crore 460mw project in
Tuticorin, Rs 2650 crore 500 mw Neyveli second M 57 b Kodaikanal
The reclassification of land, especially of plans
mine cut, Rs 5250 crore two units of 660 mw each,
on which un-authorized constructions are
at Neyveli and Rs 8000 crore LNG project at
Vembar. (Draft Coastal Area NotificatioTl Can currently in progress in Kodaikanal, sh�)Uld not
be withdrawn only on SC direction, FE.B, be made until further orders, the Mad:t{as High
1 1.02.04, Mll) Court has said and gave the direcJion to
"
Kodaikanal Municipality authoritie S while
M 57 a Ooty passing interim orders on a writ petition from
More than 6,000 Irula and Kurumba tTibals Kodaikanal Environmental Youth Service. By
living in the forests adjoining the Mudumalai virtue of the interim direction, the authorities are
Sanctuary forest area are up in arms against the restrained from reclassifying the land, which
Nilgiris district forest officers for not allowing would result in legitlmlsing the illegal ongoing
them to earn 'income by way of collecting and construction w o r k s . Sinc e 1 9 93, 845
selling minor forest produce. There are 200 tribal unauthorized constructions had been detected
families with a population of 6000 in 13 hamlets, and confirmation orders had been, issued it 802
cases. (Don't reclassify land in Kodaika nal: HC,

I
i n d u d i n g A n a i k a t ti, S r i y u r , S i n ga r a ,
Ma vanallah, Chokkanalli and Vazhaithottam in NlE.C, 1 9.03.04, M57b)
N ANDHRA PRADESH

N 00 Tourism Related World Bank. "To safeguard the reputation of the


If tourism is the buzzword for all and sundry, government, we resolved to respect the
can that 'paan-chewing, rugged' Hyderabadi agreements with the World Bank, though the
auto wallah be left behind? Soon, you will see an Bank has reservations on certain areas like free
army of auto drivers sporting a smile on their power and privatization and we disagree with
faces and 'Tourism-friendly auto driver' badges them." While · explaining the government's
on their shirts, driving their vehicles all around. policy on World Bank financing, the finance
Not only that, they will talk to you in a pleasant minister said that the new Congress government
voice, hold your luggage as you step int9 the would not accept any of the conditions put by
vehicle and hold out a tourism map for you. It's the World Bank for extending the loan. "By now
not just auto drivers. You will find specially it is clear that the World Bank wants us to
trained tourism-friendly tour operators, travel withdraw free power, but the government is
agents and customs official when you go on a persistent on it. The World Bank is also in favour
trip to tourism spots in the State, thanks to an of privatizing corporations like APSRTC. We are
initiative by Union Ministry of Tourism. against these conditions and whenever we go for
(Towards a tourism-friendly Hyderabad, K. V. new loans, we will not accept such conditions. "
Kurmanath, BL.B, 20.05.04, NOO) Further, the finance minister said that the World
Bank had agreed, in principle, to increase
In a move that could slow down Y S Rajasekhara funding for urban development projects from
Reddy's gravy train, the World Bank made it (AP To
the existing $100 million to $300 million.
clear that it has not taken a kind view of some honour ongoing IBRD funded projects, FE.B,
freebies announced by the sate government and 1 7.07.04, NOO)
would review some projects in Andhra Pradesh.
Largesse such as these cold derails the bank's Austria will provide the Andhra Pradesh
reforms process, now on under its structural government with a loan of Rs 3,400 crore for
adjustment Programme, World Bank country hydroelectric power plants, lift irrigation
director Michael Carter said. "Some of the schemes, and other irrigation projects. Andhra's
policies need to be looked at afresh in Andhra minister for maj or irrigation Ponnal a
Pra d e s h . We want to make s u re the Lakshmaiah, who signed a MoU with the
conditionalities for the projects are in Place, Austrian government. The Austrian companies
Carter said, He was talking to reporters in the are leaders in hydroelectric power prod uction as
national capital. The slow implementation of also irrigation. Sixty per ceirl: of the loan will be in
some bank-funded schemes in AP apparently cash and 40 per cent in materials., It would be
spurred the bank to take a critical view Carter repayable in seven years after tfte proj ect is
had a critical view of the Congress government's completed. It would carry an in 1!rest of 4. 9
programme to grant free power to farmers. percent. Austria is prepared to consider
"Such a move would lead to tillers pumping out additional aid, the minister said.
more ground water, which over the years has
already been depleted in several parts of the The minister said Andhra's economic growth
country. This would cause severe damage to the had been six per cent but growth of agricultures
environment." (World Bank Critical of Andhra sector was only three per cent and that too was
freebies, TOLM, 27.06.04, NOO) given to wide variation. Pointirg to another
anomaly, while two-thirds of people dependec.
The finance minister said that the government
on agriculture, it contributed only24 per cent of
has decided to honour all the agreements
CDP. To achieve sustainable economic growth,
entered into by the earlier government with the
.� I
it is necessary to give priority of the rural sector Aimed at transforming the Coastal Andhra
and empower the poor. That is exactly what his region into a 'strategic growth corridor' that
government is doing. Besides, it plans to could attract investments of over Rs 20,000 crore,
undertake four new projects and create a 65 1akh the Andhra Pradesh Government has firmed up
of new irrigation potential in the next five years major industrial development plans for the
besides adding 2000 mw of hydropower. The region that involves connecting the
government has allocated Rs. 46,000 crore for the Gangavaram Port, the Pharma City and the AP
purpose.(AP Signs MoU With Austria For Special Economic Zone (APSEZ) to the National I

Ir
Funding Hydroelectric Plants, FE.B, 8.08.04, Highway, an estimated infrastructure cost of Rs
NOO) 1 82 crore, the first phase of s 6 17-crore
Visakhapatnam Ind u strial Water Supply
Recognizing, tourism as a major growth engine Project, developed by the Infrastructure Leasing
for generating more employment and boosting and Financial Services Ltd (IL&FS) in alliance
r
economic, g r o w th, A n d h r a P r a d e s h is with Larsen and Toubro (L&T) and the Andhra
positioning itself as a favoured international and

Pradesh Industrial Infrastructure Corporation
domestic destination. The state government is Ltd (APIIC) . lAP plans 'strategic growth
chalking out long-term strategies for promoting corrido r' in coastal region, CoR. Sukumar, BL.B,
the state as a favourable destination for both 26.09.04, NOD)
domestic and international tourists. By giving
priority to rural, temple and heritage tourism, P GOA
livelihood of small artisans prod ucing and
promoting the exclusive handicrafts the state are P 00 Tourism related
expected to get a major boost. The government is "There is ample scope for tourism and Central
working on strategies outlined in the plan Bank is keen to finance this sector as well in Goa."
relating to the development of infrastructure, said General :\1anager M B Khurjekar, he also
marketing, human resources management, urged all Goans to avail of the package which
investment and ' institutional structures in consists of various schemes such as Cent
tourism. Tourism contributes about 6.37 per cent Mortga ge (personal loan against property),
of the state GDP and has been growing steadily CentTrade (business loan against property),
with increased tourist arrivals. Cent Rental (advance against rent receivable),
Cent B u y (consumer loan) . and the newly
The state government has decided to work on a introdu ced Cent Multipurpose (combination of
public private partnership model where by the housing loan, education loan, consumer loan
facilitator and the private sector's role would be etc.)(Central Bank to finance tourism industry
encouraged. Working on a new mantra called in Goa, Gomantak Times.P, 1.1.04, P OD).
'Responsible Tourism' the state government i s
taking responsibility for development and The Minister for Panchayat, Mr. Manohar
propagation of tradition and culture, further, the Azgaonkar said, the proposed international
Andhra P r a desh T o u rism D ev e l o p ment airport at Mopa will give boost to the tourism
Corporation (APTDC) has suggested to the activities in the Arambol beach areas, which is
government of India that it be made the regional nearest to it and urged the local peoples
hub for cruise tourism connecting the Andaman representatives to make effort for development
Nicobar and Lakshdweep Islands. (Andhra of tourism infrastructure facilities in the area.
Pradesh Positions Itself As A Favoured Tourist (Proposed Mopa airport to give ' boost to

I
Destination, FE.B, 19.09.04, NOO) tourism, Navhind Times,P, 7.1.04, P 00)
Goa should look beyond the sun-surfs and We can offer that perfect mix of business and
combination and work towards becoming a pleasure at one destination. A Gomes Pereira,
r--::=�----, major destination for area manager for the Travel Corporation of India
conventions. echoed De Souza's view, "The convention centre
Tourism expert is a long dela yed development. Goa has so much
/,;.'-"'�)<l Pranab Pal voiced potential and it will be extremely good for
this opinion. Goa is business. We will definitely see a boost in
very popular with business travelers." (Tourism Industry hails
the charter tourists convention Centre, GT.G, 7.2.04, P 00)
I-__-.:.;;=;;;;;.....;=--'"=.,.� a nd b o a st s 0 f a
tremendous amount of repeat clientele' �hich Singapore Tourism Board has decided to
means that people are going back satisfied. He promote its tourism in Goa, besides making it

I
said Goa is not only the beach. You need to number one tourist destination for Indian
promote the other facets of Goa like the spice travellers, according to marketing manager
plantations, its villages and its natural beauty. (South Asia), Arun Srivastava he also told that
These are aspects that have to be promoted Singapore was the most favourite destination for
urgently at this point of time and one thing that Indian tourists and nearly 3.75 lakh Indians
is needed for Goa to seriously as a tourism tourists visited in the year 2002. It now plans to
destination is a big convention centre. This is one target 5 lakh Indians by 2005. It had 7.5 million
area of tourism activity that is growing inbound tourists in 2002. According to him,
worldwide and we do not have it in Goa. (Goa Singapore was really inspiring place and the best
should explore convention based tourism, tourist destination and a safe place like Goa.
GT. G, 8.1.04, P OO) (Singapore Tourism Board to Promote tourism
in Goa, GT. G, 4.3.04, P 00)
The state government plans to rehabilitate the
displaced persons and sex workers at Baina by The Mormugao Port Trust (MPT) is gearing up
formulating a special scheme shortly and later to s e t up I n di a ' s only s t a te-of-the-art
develop Baina beach as a tourist spot. The international cruise passenger terminal at 'Baina
government has no plans to hand over the Bay' by 2006. The project, estimated to cost about
vacated land to any private parties or to the Rs 200 crore, envisages a full-fledged terminal
Mormugao Port Trust. In response to a demand with customs and immigration counters,
from Mr. Faleiro and Mr. Vaz that the conveyor belts for l uggage, waiting lounges and
� government should part with the land to any a 450 meter-long pier thf.t will be able to
t;: private parties to develop the area, Mr. Parrikar accommodate even the biggest of cruise liners.
� emphasized and said the beach area would be There is also a proposal to set up � Duty Free
converted into a tourist spot. (Govt. to develop shopping center at the terminal. (Bhina Out oj
Baina beach as tourist spot, Herald.G, 21.2.04, P the Red, Reuven Proenca, GT.P, 26.3.84, P 00).
00)
The turtles do not bring any income to these
Goa's tourism industry fast running out of fresh villagers, yet they eagerly await them. These
\,;; ideas to promote itself - has seen new hope in the visitors are none other than the Olive RicHe?
'\:l government's recent decision to set up the turtles, one of the endangered species of sea
largest convention centre in Asia. Chief minister turtles in the world.
Manohar Parrikar announced that the Union Eco-tourism
government will set up the Rs 1500 crore Call i t a mere coincidence or a natural
c o mp l e x w i t h a c ap a c i t y o f 6 , 0 0 0 to phenomenon the tourism and 'the nesting
8,000.delegates, almost double the capacity of seasons begin almost at the same time in Goa,
the Convention Centre of Asia in Manila. between September end and May . While
increasing tourism related activities has had an suspect was presented before a Metropolitan
adverse impact on the nesting activity arrival of Magistrate. Wanted since November 2001,
turtles has in fact promoted eco... tourism in the Waters was brought back to Mumbai yesterday
State. The number of nests, total I number of by a two-member police team, following his
eggs and total hatchings released is as fC!llows ... extradition from New York. Waters was accused
Morjim (9-927...558); Galgibag (14-1,405...922) and by four street children (13...18 years) of sexually
(Decline in nesting of 0 live
Agonda (6...590 ...213) . abusing them at the Anchorage shelters set up in
Ridleys in Goa, Anil Sastry, TH.D, 29.S.04, P 00) 1 995-6 by friend and co...accused, Duncan Grant.
A few street children who used to live at the
This is no ordinary citizen and this is no ordinary Anchorage shelters watched the proceedings.
case," said lawyer Majeed Memon of his British (British paedophile suspect sent to police
client Allan Waters (56), as the child abuse custody, lE.D, 8.9.04, P 00)

Q NORTH EASTERN STATES


Q 00 Tourism related revolve around the mantra, repeated by the
Such knowledge makes it impossible for him to younger set, of "when the tourists come".
remain hungry in the rugged, heavily forested
U n r ea s o n a b l e p o l i t i c s a n d u n r e l i a b l e
hills that rise up from behind his village of
infrastructure are not however what worry the
Khonoma, in Nagaland 's Kohima district. He Khonoma village elders as much as the
likes the taste of chicken, beef, pork and ... feasts unaccustomed attention. India ... all too often,
permitting ... mithun meat too, but is otherwise and sadly, referred to as the "mainland" ... has in
botanically equipped to spot the edible vine, its effort to get the Nagas to abandon their goals
creeper or succulent, bush, fruit, berry, leaf and and ideals used military might and material
inducement. Yet Naga society has never been
tuber to add to his cooking pot, all of which he
held in stasis. From the time of their fierce
does regularly. To walk the Naga Hills is to encounter with the British colonial forces in the
understand a mind and a community that is 19th Century and until today, they have not been
extraordinarily attuned to the environment in passive victims of processes designed to erode
which they thrive, and which has as its culture. Rather, their sense of history and tribal
fundament, the concept that we know and call as identity has been destroyed and disused." A
good bit of that optimism derives from the
sustainability. That, when linked to the catchall
pragmatic approach of the village youth
word "development", the concept is the subject
towards the potential that tourism may hold for
of innumerable working papers, seminars and them. It is a perspective sha:ped by the village ,
\,
conclaves, and otherwise provides tens of council, which chooses to see tourist revenues as
thousands of " development professionals" with onlv one among several streams of communal
a livelihood is hugely amusing to Kevin and his inc�me, and certainly not the most important
despite the beliefs of distant planne.J;S in New
friends.
Delhi and opportuI'ist bureaucrats in Kohima. It
is a step into the unknown for a community that
These are resident skills that the village has been the touchstone of the Naga nationalist
community of Khonoma ... a settlement of about movement, and which is justifiably proud of its
500 houses cradled by the hills is hoping to provenance. It is also one they are taking with
exploit as a tourism winner. Furnished with a the watchful caution that has long characterized (
grant from the Ministry of Tourism and Culture
the Naga soul (Headfor the Naga Hills-Tourism
is coming to a remote village cqmmunity in i,!)
}<:
in New Delhi, and supported by the Nagaland Nagaland and while planners and bureaucrats
State Government, which is bent on turning the see it as a perfect enterprise, N,(.lg(l youth are
illustrating why they will have the final say,

I
village into a showcase €Co ...tourism model, the
village is awash with plans and dreams that Rahul Goswami, TH.B,.28.3. 04, Q 00)
S OTH ER STATES

5 10 Eastern India-Orissa, West Bengal s t a t e . The master plan incorporates


Kolkata has become the country's first city to improvement o f Chardham, d evelopment o f eco
have a floating hotel that arrived here and in turn tourism, d evelopment of ski resorts at Dayara
joined cities like Moscow, St. Petersberg, Vienna, Bugyat development of water sports resort at
Hamburg, Amsterdum, Phnompen, Hong Kong Tehri Darn, improvement of infrastructure
where 'Floatels' are the major tourist and facilities on major trek routs, development of the
business attractions. The four-storied Floatel in area in and around Pithoragarh, Uttarkashi,
Kolkata has been built according to international ChamoH and Dehradun besides development of
four-star standards and was under construction two new circuits Pauri -Khirs u . Officials
for the past four and half years at the Kidderpore revealed that over 100 proposals from private
docks. Mr. Pal said the Floatel, which was being sector have already been mooted. Mr. Prasad
given the look of a ship, would be managed by said the prestigious Taj Group of Hotels are
Orchid International and had been under the establishing a chain of modest economy hotels in
constant scrutiny of the American Bureau of the state, under which the group will set up eight
Shipping, an agency affiliated to the UN's hotels on the Haridwar and Badrinath route to
Interna tional Maritime Commission that attract the middle income group tourist. The
certifies, floating structures on the basis of safety Dehradun airport is also being upgraded and
and security. (First floating hotel in Kolkata, developed and three airstrips in the hills will be
m.B, 18.05.04, 510) operationalised soon.

The West Bengal government s i gned a Two new tourism circuits have also been
Memorandum of Association (MoA) with i d entified between P a u r i-Khi r s u a n d
beyond limit international limited (BLIL), a joint Pithauragarh Munsiyari to promote lesser­
venture company floated by Salim and Ciputra known destinations, removing tremendous
groups of Indonesia, for constructing a mega pressure on popular hill stations such as
township in West Howrah at a cost of Rs 3200 Mussoorie and Nanital. The government has
crore. The township would be constructed for also tied up with a France based public relation
i
residential, industrial and commercial purposes, agency to promote Uttaranchal as modest tourist
I adding that the foreign company had also d e stination in Europe and England.
agreed to provide housing for weaker sections "Uttaranchal has fast merged as a major tourist
within the same premises. Earlier, the state destination, specially because i t is richly
government invited the Indonesian group to endowed with natural splendour. This state
explore the possibility of investing in West provides tourists a breathtaking panoramic
Bengal. The township would also generate view of the Himalavas besides an;unparalleled
;
employment of 3,000 people and the land would
-

world into a rare diversity of flora and fauna. It is


be given on 999 years I ease. an ideal destination for the development of eco­
(Indonesian Group To Invest Mega Township tourism projects and activities like jungle safaris,
Project In WB, FE.B, 8.07.04, 510) trekking, forest trails, nature walks and angling
for Mahaseer. (Rs. 1,187 Cr set aside for
S 20 North India-UP, Bihar, Uttaranchal
Uttaranchal tourism, AA.B, 21.01�04, S20) This
Uttaranchal's unchallenged beauty will now
summer, holidayers will have a new destir.ation
become even more accessible, thanks to its
to choose from the state prison and the holiday
tourism s ecretary N.N. Prasad who has
itinerary; being put together by the Ch.1-tattisgarh
prepared an exhaustive Rs 1 , 187 crore master
T o u r i s m B o a r d ( CT B ) w i t h p r i v a t e
plan to promote tourism infrastructure in the
/ \:

entrepreneurs, includes staying in the prison West Bengal Co-op Spinning Mills L td (Mg Dir), 25,
cell, a special dinner of jail ki roti and dal, besides Ganesh Chandra Avenue, Kolkata 700013: For
games such as escaping through a specially dug supply of machinery for following departments
tunnel. The novel idea is part of the CTB's mega for purpose of modernization: a) Blow-room, b)
drive to promote the state's tourism potential. Carding, c) Draw Frame, d) HS Speed Frame, e)
The board has already acquired an abandoned Ring Frame, f) Post Spinning I) Auto Conerl ii)
state prison in Jagdalpur for the purpose and is Splicer. (M.P. Tourism calls bids for backwater
in the process of inviting tenders from private cruises boats, BL.B, 3.3.04, S20)
hoteliers and hotel chains to operate and manage
the premises. The state is also taking several The Government of India has recommended to
initiatives to generate interest in both the the United Nations Educationat Scientific and
entrepreneur and the tourist in the state. To Cultural Organization (UNESCO) to include the
name a few tourism has been granted industry Golden Temple at Amritsar, Punjab, in the
status; exemption has been granted on World Heritage list. Prof. Enamul Haque, the
entertainment and luxury tax for a period of 1 0 one-man commission on behalf of the UNESCO,
years and the state has cut levy o n aviation I will visit the place this month to make his
turbne fuel to 4 per cent. (Chhattisgarh jail a s s e s s m en t . H e w i l l forward h i s
beckons tourists, Byas Anand, TOI.M, 3.02.04, recommendation, based on historical, cultural
520) and architectural factors, to the International
Council on Monuments and Sites (ICOMOS) /
The following are some of the important tenders UNESCO. In July this year, the UNESCO
floated by various organizations/institutions: inc l u d e d the B r i h a d eesvarar t e m p l e a t
Jharkhand State Electricity Board (CE S&P), Engg Gangaikondacholapuram in Perambalur district
Bldo,
,)
HEe, Dhu rwa, Ranchi 4: For supply of type and the Airavatesvara temple at Darasuram in
tested 11/ 4 KV AI, wound 63 KV AI, CRGSO Thanjavur district, both in Tamil Nadu, in the
core transformers . Qty: 600 nos . World Heritage list of monuments and sites. The
Government of Jharkhand, Civil Aviation Dept,
' Brihadeesvarar temple in Thanjavur tOvvn was
C\1PDI Bldg, Kanke Road, Ranchi: For supply of
earlier included in the list. All the three temples
six to eight (excluding crew member) seater twin are outstanding examples of Chola architecture
engine jet, super king air B-200, King Air C-90 and sculpture. (Government wants Golden
aircraft on lease as & when required basis. Temple to be in World Heritage L is t, T.S.
Subramani.m, TH.B, 3. 8.04, S 20)
National Chemical Laboratory (Sr Stores & Purchase
Officer), Pune 4 1 1 008: For development and The Madhya Pradesh Tourism Development
implementation of an open source Web-based Corporation Ltd (MPTDC) has decid�d to tap
integrated enterprise work flow and the huge domestic tourist potentia!,. and is
information management portal software eyeing a 70 per cent jump in revenues for the
application for National Chemical Laboratory. current fiscal. The corporation is quite clear
MP State Tourism Dev Corpn (DGM Water Sports), about its target. "We are mainly targeting
Gangotri, 4th floor, TT Nagar, Bhopal (MF) 462003: domestic tourists. We are not looking at
Corporation plans to acquire two cruise boats for international tourists, ' said Mr. . Ashwani
launching backwater cruise on Narmada river at Lohani, Managing Director, he also s�id that the
Baro-ee
o
Dam near Jabalour. Cruise boat to be a
< State had taken up a major infrastructure
double decker and twin or mono hull or a development programme. This would connect
combination made on GRP. Carrying capacity 50 all the major tourism destinations yvith good
persons plus soft load of two tonnes. Speed 10 to roads. (MP Tourism to tap potential, BL.B,

I
1 2 knots, which are operational & running. 24. 08.04, 520)
2

� " .
�'
. . .

West Bengal Co-op Spinning Mills Ltd (Mg Dir), 25, of militancy in 1 989-90. For the first time the
Kashmir To urism Department would be
S 21 Jammu & Kashmir participating in a big way in the forthcoming
The recent detente between India and Pakistan Arabian Travel Mart in Dubai. (Peace big boost
has appreciably boosted up the tourist traffic to. to Kashmir tourism, AA.B, 1 9.02. 04, S21)
Kashmir. According to the officials, about 500 Express power golf 2004 starts with tow days of
tourists are arriving in the Valley daily. For the exciting competitive golf and drives hit down
first time the State Tourism Department has the lush green fairways and putts holed on the
started winter sports in the mountain resort of scenic Royal springs Golf Course in Srinagar and
Pahalgam, some 100 km south of capital the Gulmarg Golf Courses in Gulmarg. Express
Srinagar. "A large number of youth are being Power Golf 2004 will host over 90 amateur
imparted lessons in skiing," said one of them, golfers, hailing from the corporate and business
adding that Gulmarg, the famous winter sports arena and professional like Bharat Patel. (Golf in
resort in the northwest of the Valley, has already paradise-Express Power G o lf tees off in
hosted the first part of India's National Winter Kashmir, Shona A Singh, IE.D, 30.08.04, S21)
Garnes. Tourism is an important sector of the
S 30 Western India-Raj asthan
state's economy and employs a large workforce.
After a lull, foreign tourists are returning to
The years of militancy after 1 990 had seen the
Rajasthan in droves. In fact, that the popular
closure of almost all tourism-related activities.
luxury train Palace on Wheels (POW) has had to
"The improving situation is expected to further
make advance bookings for the next three years.
boost tourism activities during the forthcoming
Rajasthan Tourism has decided to hike fares
summer season", they also told the Kashmir
from the, current $350 per person by 1 0 per cent
Tourism Department would b e specially
from the next fiscal. The state tourism ministry
targeting Gulf travelers, who had been visiting
is planning to develop Rajasthan as a 365-year
the Valley in large numbers prior to the eruption
destination.

Foreign Tourist Arrivals In Rajasthan


JAN-JUN 2004

2004 1st Quarter April Mav June Total" Grand total


2003 2,87,661 48/633 27,397 20/953 96,983 I 3,84/644
% Change 1 ,72,103 29,31 5 1 7,688 1 7,321 64,324 1 3�,""1'-
,117
I
-- f

67.1 4 65.89 54.89 20.97 50.77 62.$9

NOTE: the low value in 2nd quarter is due to seasonal factor

(Palace On wheels Drives up tourist Arrivals in Rajasthan.


5anjay Thapa, FE.B, i.09. 04/ 530) I '
T· FOREIGN COUNTRIES

T 00 Internationa l Tourism Volumes and traveling to Sri Lanka would be cheaper. (Lanka
Patterns has plans for Indian tourists, M. Enosh
Sri Lanka is keeping its fingers crossed that the jeremiah, ET.D, 25.2.04, nO)
Indian government's open-skies policy, rocked
by turbulence at the moment, ultimately takes T 20 South East Asia
Booming tourism, neglect and inadequate funds
off. This is because India leads the global tourist
for protection is nibbling away China's Great
pack to Sri Lanka. The island nation is expecting
Wall and just one-third of it remains. Only one­
1 ,50,000 tourists from India in calendar year 2004
third of the 6,350 km of Great Wall, a world
against last year's 93,000. Since an Indian
famous landmark in China, now exists and the
traveler to Lanka offloads $85-90 per day against
length is still shortening. Surviving for
the average $6570 spent by other international
centuries, the Great Wall was listed as a world
tourists, India is definitely one of the thrust areas
c u l t u r a l h er i t a g e s i t e i n 1 9 87 b y t h e
this year for Sri Lanka Tourism, a board funded
UNESCO.
by the government Sri Lanka. Emboldened by
the prospect of Sahara and Jet launching their Investigation showed that the project was part
direct flights to Colombo, the board is also o f t h e p l a n e d H on g y u V i l l a p r o j e c t ,
expecting India to contribute 25-30% to the $11 unauthorized b y the cultural relic department.
million global market and has already launched After being fined 1 00,000 yuan ($12,000) for the
promotional activities across various media, damage to the Great Wall, the investor Zhou
including the i nternet, but the travel i ndustry Wen felt he had been wronged. Booming
may take heart from the fact that possibly tourism, in itself, has increased the burden on
procedural snags are holding up the two private the Great Wall. The Wall has offered popular
airlines from launching their regular flights to scenic spots and brought huge profits in recent
Lanka. While Jet is yet to decide on the exact years. Statistics show it receives about 1 0 million
sector, the airline is likely to announce the visitors every year all over the country.
commencement of a direct flight to Colombo this (Tourism devours China 's Great Wall, ToLE,
month i tself. (Touristy Lanka hopes open skies 27.1.04, T20)
take off, Madhumita Mookerji, ET.D, 1 1 .2.04, T
00) Singapore visitors centre (SVC), the first in
India, was i naugurated i n Chennai b y
T 10 South Asia Shakthidasan, commissioner of tourism, Tamil
Sri Lanka has set a target of wooing one-and-a - Nadu. Set up by Singapore Tourism Board
half lakh Indian tourists during the current (STB), the centre will provide customer �ervice
II
calendar year. It attracted 98,000 tourists from support to Indian travellers to Singapore.
India last year; the island nation has become a Indian tourists to Singapore are the tourth
fav oured destination for many Indian tourists hi ghest spenders. STB has also set up Mark eting
from IT and other corporate sector. "And with Advisory Council to suggest to STB the
growing disposable incomes in many Indian strategies for growth and d evelopment of the
middle-class families, we hope a large chunk of Indian market. STB aim is to create a top of the
them will choose to visit our beautiful drop mind awareness about Singapore, when it
shaped island that offers many attractions comes to tourism, i n the minds of the people.
within their budget." Sri Lankan Airlines (SLA) The number of visitors in 2003 was 6.1 million as
launching its Colombo-Hyderabad Colombo against 7.5 million tourists, who visited the
flight on Sunday, said now that Colombo is country in 2002.(Singapore Tourism Qpens First
directly connected with Andhra Pradesh; Visitors Centre In Chennai, FE.D, 24.2.04, T 20)

I
In a bid to promote medical tourism, the in Hong Kong, estimates mainland visitor
Federation of Indian Export Organizations arrivals to the city will increase by 4 per cent in
(FlEa) would lead a team of 12 Indian Hospitals 2004 to hit 12 million. And, these 12 million odd
on service exports. The team of hospitals would visitors aren't coming to the city to only to take in
visit Singapore, Indonesia and Malaysia. In this the bright big city lights and sights of Hong
Healthcare delegation, the federation would Kong. They are spending. The per capita
focus on presenting to these countries the vast spending is pegged at US$625, which adds up to
range of specialized hospitals, the state-of-the­ US$ 7.4 billion a year. This is an impressive total.
art medical facilities and the high quality of Mainlanders are effectively contributing for as
skilled and trained medical personnel manning
much as 28 percent of Hong Kong's total retail
them. (FlED to promote medical tourism, NEC,
sales equivalent to 1 .5 per cent of estimated 2004
19.9.04, T20)
nominal GOP. Finally, the rise in debit and credit
card ownership in China has also changed the
First it was Hong Kong Tourism Board and
dynamics. The report estimated that 64 per cent
Tourism Malaysia vying for a bigger pie in the
'Indian tourism market but the latest to join in of the visitors held at least one debit card and 75
the melee is Singapore Tourism Board (STB) percent at least one credit card. Despite the fact
which has not only restructured office but has that usage still continues to be low, this does
also moved into more aggressive marketing imply tha t visitors are no l onger cash
initiatives and road shows over the weeks. Its constrained. Hong Kong stands to lose little by
main aim is to promote Singapore as the premier catering to the mainland. (Mainland Tourists
destination important meetings, incentives, Fuel Hong Kong Economy, Gauri Lakhanpal,
conventions and, exhibitions (MICE) and has FEB, 19.6.04, T30)
invested Singapore $15 million on a campaign
called "Make it Singapore. We have never really T 60 Europe
According to trade estimates, the per head spend
focused on individual areas of tourism before
and are now looking at this in a very specific way of Indians is in the region of $2,500-$3,000 in
this year. STB is looking at major branding Europe during a holiday, which includes both
exercises especially for the MICE market. food and shopping. The result is special
According to a trade analyst, as a MICE promotions designed for Indian audiences,
destination Singapore I has 'always been very unique discounts, and acceptance for the Indian
popular and in 2002, this segment attracted 1 .5 rupee even in places as far Glway as SWitzerland.
mil lion visitors and Ingenerated tourism Mr. Fredrick Diveja, seNor vice-president,
receipts totalling Singapore $2.2 billion. (S'pore saTC said that even though post lfberalization
T o u r i s m L a u n ch es N e w P ro m o ti o na l almost all international brands aret available in
Campaign, Candida Moraes, FEB, 24.9.04, T20) the country, Indian holiday makel'S and even
business travellers invariably tend to shop
T 30 Communist Asia
Chinese tourists are becoming a sought after abroad. Indians typically look for perfumes,
commodity in countries around the world. They chocolates, watches, j ewellery and other give­
are to the 21st century what Japanese tourists aways. Tour operators, therefore, tend to put
were to the previous one. Hong Kong is no together packages, which have a reasonable
exception. It is, of course, technically a part of shopping component in it. For instance, SOTC
China but will continue to remain an autonomous European packages spanning 14,18 and 20 days
region till 2047. The territory has been offer shopping space up to two--:a.np -a-half days.
leveraging this very proximity to the mainland
(Shop savvy Indians excite Ell tourism, Girish
to its fullest in its attempts to attract Chinese

-I tourists. A recent report on Chinese tourists


Rao, ET.C, 29.1.04, T60)
T FOREIGN COUNTRIES

T 00 International Tourism Volumes and traveling to Sri L anka would be cheaper.


(Lanka
Patterns has plans for Indian tourists, M. Enosh
Sri Lanka is keeping its fingers crossed that the Jeremiah, ET.D,25.2.04, TI0)
Indian government's open-skies policy, rocked
by turbulence at the moment, ultimately takes T 20 South East Asia
Booming t ourism, neglect and inadequate funds
off. 1bis is because India leads the global tourist
for protection is nibbling away China's Great
pack to Sri Lanka. The island nation is expecting
Wall and just one-third of it remains. Only one­
1,50,000 tourists from India in calendar year 2004
third of the 6,350 km of Great Wall, a world
against last year's 93,000. Since an Indian
famous landmark in China, now exists and the
traveler to Lanka offloads $85-90 per day against
length i s still shortenin g . Surviving for
the average $6570 spent by other international
centuries, the Great Wall was listed as a world
tourists, India is definitely one of the thrust areas
c u l t u ra l heritage site in 1 98 7 b y t h e
this year for Sri Lanka Tourism, a board funded
UNESCO.
by the government Sri Lanka. Emboldened by
the prospect of Sahara and Jet launching their Investigation showed that the project was part
direct flights to Colombo, the board is also of the p laned Hongyu Villa project,
expecting India to contribute 25-30% to the $11 unauthorized by the cultural relic department.
million global market and has already launched After being fined 100 , 000 yuan ($12,000) for the
promotional activities across various media, damage to the Great Wall, the investor Zhou
including the internet, but the travel industry Wen felt he had been wronged. Booming
may take heart from the fact that possibly tourism, in itself, has increased the burden on
procedural snags are holding up the two private the Great Wall. The Wall has offered popular
airlines from launching their regular flights to scenic spots and brought huge profits in recent
LanJ.:a. While Jet is yet to decide on the exact y ears. Statistics show it receives about 10 million
sector, the airline is likely to announce the visitors every year an over the country.
commencement of a direct flight to Colombo this (Tourism devours China 's Great Wa ll, ToI.B,
month itself.(Touristy Lanka hopes open skies 27.1.04, T 2 0)
take off, Madhumita Mookerji, ET.D, 1 1.2.04, T
00) Singap ore visitors centre (SVC), the first in
India, w a s i na u g u ra t e d i n C hennai by
T 10 South Asia Shakthidasan, commissioner of tourism, Tamil
Sri Lanka has set a target of wooing one-and-a ­ Nadu. Set u p by Singapore TOU rism Board
half lakh Indian tourists during the current (STB), the centre will provide customer se:rvice
calendar year. It attracted 98,000 tourists from support to Indian travellers to Singap�re. "
India last year; the island nation has become a Indian t o urists to Singapore are the fqurth
favoured destination for many Indian tourists hi ghest s penders . STB has also set up Marketing
from IT and other corporate sector. "And with Advisory to suggest to STB the
C o uncil
growing disposable incomes in many Indian strategies for growth and development of the
middle-class families, we hope a large chunk of Indian market . ST B aim is to create a top of the
them will choose to visit our beautiful drop mind awareness about Singapore, Vl(hen it
shaped island that offers many attractions comes to t o u rism, in the minds of the people.
within their budget." Sri Lankan Airlines (SLA) The number of visitors in 2003 was 6 . 1 million as
launching its Colombo-Hyderabad Colombo against 7.5 million tourists, who visited the
flight on Sunday, said now that Colombo is (Singapore Tourism Optms First
country in 2 00 2.
directly connected with Andhra Pradesh, Visitors Centre In Chennai, FE.D, 24.2.04, T 20)

I
In a bid to promote medical tourism, the in Hong Kong, estimates mainland visitor
Federation of Indian Export Organizations arrivals to the city will increase by 4 per cent in
(FlEO) would lead a team of 12 Indian Hospitals 2004 to hit 12 million. And, these 12 million odd
on service exports. The team of hospitals would visitors aren't coming to the city to only to take in
visit Singapore, Indonesia and Malaysia. In this the bright big city lights and sights of Hong
Healthcare delegation, the federation would Kong. They are spending. The per capita
focus on presenting to these countries the vast spending is pegged at US$625, which adds up to
range of specialized hospitals, the state-of-the­ US$ 7.4 billion a year. This is an impressive total.
art medical facilities and the high quality of Mainlanders are effectively contributing for as
skilled and trained medical personnel manning
much as 28 percent of Hong Kong's total retail
them. (FlEO to promote medical tourism, NE.C,
sales equivalent to 1 .5 per cent of estimated 2004
19.9.04, T20)
nominal GOP. Finally, the rise in debit and credit
card ownership in China has also changed the
First it was Hong Kong Tourism Board and
Tourism Malaysia vying for a bigger pie in the dynamics. The report estimated that 64 per cent
'Indian tourism market but the latest to join in of the visitors held at least one debit card and 75
the melee is Singapore Tourism Board (STB) percent at least one credit card. Despite the fact
which has not only restructured office but has that usage still continues to be low, this does
also moved into more aggressive marketing imply that visitors are no longer cash
initiatives and road shows over the weeks. Its constrained. Hong Kong stands to lose little by
main aim is to promote Singapore as the premier catering to the mainland. (Mainland Tourists
destination important meetings, incentives, Fuel Hong Kong Economy, Gauri Lakhanpal,
conventions and, exhibitions (MICE) and has FE.B, 1 9.6.04, T30)
invested Singapore $15 million on a campaign
called Make it Singapore. We have never really T 60 Europe
focused on individual areas of tourism before According to trade estimates, the per head spend
and are now looking at this in a very specific way of Indians is in the region of $2,500-$3,000 in
this year. STB is looking at major branding Europe during a holiday, which includes both
exercises especially for the MICE market. food and shopping. The result is special
According to a trade analyst, as a MICE promotions designed for Indian audiences,
destination Singapore I has 'always been very unique discounts, and acceptance for the Indian
popular and in 2002, this segment attracted 1 .5 rupee even in places as far away as Switzerland.
million visitors and Ingenerated tourism Mr. Fredrick Diveja, serlior vice-president,
receipts totalling Singapore $2.2 billion. (S'pore SOTC said that even though post l�beralization
To u ris m L a u n c h e s New P r o m o ti o n a l almost all international brands are (available in
Campaign, Candida Moraes, FE.B, 24.9.04, T20) the country, Indian holiday makel1S and even
T 30 Communist Asia business travellers invariably tend to shop
Chinese tourists are becoming a sought after abroad. Indians typically look for perfumes,
commodity in countries around the world. They chocolates, watches, jewellery and other give­
are to the 21st century what Japanese tourists aways. Tour operators, therefore, tend to put
. [
were to the previous one. Hong Kong is no together packages, which have a reasonable
exception. It is, of course, technically a part of shopping component in it. For instance, SOTC
China but will continue to remain an autonomous European packages spanning 14,18 and 20 days
region till 2047. The territory has been offer shopping space up to two-i:,mq.-a-half days.
leveraging this very proximity to the mainland
(Shop savvy Indians excite EU tourism, Girish

I
to its fullest in its attempts to attract Chinese
tourists. A recent report on Chinese tourists Rao, ET. C, 29.1.04, T60)
r
Even though Indian arrivals into Spain the further due to this. (Better Scope for Enhancing f

second most popular tourist (54.2 million) Tourist Traffic to Russia, Huma Siddiqui, FE.C,
destination in the world are like a drop in the 18.8.04, T60)
ocean its tourism board is kicking off new
initiatives in the Indian market to double traffic
T 80 Caribbean/Central and Latin America
On his arrival in India, Brazil's President Luiz
this year. Indians have moved up the ladder to
Inado Lula da Silva will see a vibrant country
become the highest Asian spenders in Spain in
that has been growing at 6 % a year for a decade ­
recent years, ahead of favourite like China. In
which is more than twice Brazil's rate. But Brazil,
shopping alone, they spend around £565 per
. with one sixth of India's population, has a much
head, and with a little marketing persuaslOn,
higher per capita income. Currently projected
their numbers as well as the length of their stay,
growth rates say that India will be the fourt�
can be increased. In fact, Spanish tour operators
largest economy in the world in 2025 an� BrazIl
along with local film commissions are visiting
the eighth. The visit has enormous bIlateral
the, country with special packages aimed at
significance as well. The two nations have h �ge
facilitating Bollywood productions in Spain.
and unrealized prospects for collaboratmg
Thou<Th
o
last year Spain received 1 0,000 Indians,
. economically, socially and culturally too both
which is small by any standard, the quahty of the
f a c e i m p o r ta n t s o c io - e c o n o m i c a n d
audience was good. (Spain Wooing Indian
environmental challenges and they can learn
Tourists, Girish Rao, ET.B, 25.2.04,T60)
from each other's development experience. This
potential for learning and exchange makes them
With the Congress in power in New Delhi, talks
natural partners in development. To be sur�,
of proximity to Russia have come alive once
there are major differences in the socio-economIc
again. India wants to begin vvith more people-to­
characteristics of their development patterns. In
people contact. It plans to increase the number of
India, for example, the scale of poverty is larger.
flights to Moscow to achieve this. "There is a
. Brazil, on the other hand, has a more skewed
scope to increase the tourist traffic between IndIa
distribution of income. At the same time, both
and Russia and for this the number of flight
find that economic and social challenges are
between the two countries is expected to be
inter-woven and inseparable. B o t h the
increased," said Mr. Rajiv Dogra, joint secretary
economies see that sust.ained progress calls not
in the ministry of external affairs (MEA). The
only for economic growth but also changes in the
Indo-Russian trade has stagnated to $1.5 billion
quality of growth to include increasing numbers
for several years now. So far, the trading Was
of people in the process. And, ; they share a
done in rupee-basis, but from this year on, India
number of priority focus areas when it comes to
is 0
crradually 0
O"oincr
0
to trade in hard currency on .
the nature of the growth process.
dollar basis, as all countries do. India's debt o f $4
billion from the erstwhile Soviet Union will
The bilateral trade between Brazil and Intlia is
come to an end in three to four years' time. India
only US $ 1 billion a year today, but the large
makes a repayment of $900 thousand every year.
price differentials between the tW? suggest that
Today, exports from India to Russia totaled 1 .34 opportunities exist in pharmaceutIcal dr� gs and
per cent of India's entire exports. And imports in equipment Areas of culture, education and
were just 0.97 per cent in 2003. This is another tech�ology represent promi�ing and un er­ �
cause for the Russian worry. Most Indian goods exploited avenues for growmg collaboration
supplied to Russia are a part of the debt and trade. Reforms g o v e r ning .fo reign
repayment arrangement made by India. The investment matter too: foreign companies
major part of this debt would be repaid in one or relying on Indian participation have triggered
ru:
I
two vears, and Russia is worried that bilateral
� 50% yearly growth of i ormation technology,
trade between India and Russia could fall with $10 billion in exports m 2003.
Brazil and India today are two countries with of their growth will ensure a better life for
enormous possibilities for greater partnership increasing numbers of people to in the current
and growth. The vital question is how the nature and future generations. (Natural partners in
development, ET.B, 24.1.04, T80)

U I NTER NATIONAL ECONOMY


U 00 International Economy, Globalization forum is its strength. The only disqualification
On Most Counts the 2004 meeting of the Wodd for participation is a belief in violence as an
Social Forum in Mumbai has been a resounding instrument for political and economic change.
success. The fourth annual meeting drew 80,000 The WSF began as a meeting place to develop
participants and it had representatives from critiques of economic globalization. However,
around the world, even if the overwhelming its conference agenda has been broadened and
majority came from the host country. The WSF deepened and now covers a range of socio­
was witness to hundreds of seminars and panel political and cultural issues. At Mumbai, the
discussions on a variety of issues related to issues discussed included the u.s. occupation of
globalization. The meeting brought together Iraq, the Kashmir question, caste in India, and
members of some of the most active political and challenges and opportunities in the realm of the
social movements in the world and many media and knowledge, including the free
leading thinkers in politics, economics and software movement.
culture all united by a belief that " another world
is possible". There was also some involvement The open agenda of the programme encourages
of government representatives such as in truly diverse, some would say inchoate,
discussions on WTO issues where senior discussion, and the involvement of some fringe
officials from Brazil and India interacted with elements. But this is a small price the forum has
activists and independent thinkers. The forum to pay to maintain inclusiveness in participation.
has come to be described as a "carnival of ideas" . One criticism from within the anti-globalization
movement is that the forum is but a vast talking
In just three years, the WSF, a platform for shop from which no concrete programme has
discussing alternatives to globalization, has emerged thus far. Yet this complaint ignores the
acquired a profile that matches that of the much very phenomenon that gives the WSF its
older World Economic Forum, the yearly strength: providing movements and
meeting of government policy-makers and organizations from arQund the world a
corporate chiefs usually held in Davos, geographic and even temporary political "space"
Switzerland. In terms of creating an awareness where they can share experiences,! toss around
of alternatives, if not in terms of having a and fertilize new ideas. How successful this
concrete impact on national policies, the WSF p
process will be depends on how the articipants
has been a success story. With the forum moving subsequently build on their WSF experiences .
. outside Porto Alegre, Brazil, for the first time, the The o ther cri ticism, from the so-called
shortcoming of drawing little participation from mainstream, is that all the discussion about
Asia was addressed at Mumbai. The WSF opposing globalization is nothing but tilting at
provides the space for members of a variety of windmills. This too is an unfair criticism. In a
p olitical, social, economic and cultura l world where global capital exercises such a
organizations to discuss and exchange ideas. It dominant role in national economies and
has also become a rallying Point for groups societies, there are few opportuI)itifs available tc

I
hoping to formulate alternative agendas. The debate alternatives or air dissent. That the foruIT.
open and loosely networked organization of the is internationally perceived ,to provide a major
to do this year after year, drawing in new polemic" on farm subsidies. In more sanguine
participants, is heartening from a democratic times, this kind of language at this level was
standpoint. (The WSF phenomenon, . TH-B, unthinkable but trade negotiations are no longer
22.01.04, U 00) cricket, alas!. I remember when we once rejected
a political "favorite" project in the Planning
Buoyed by performance of software services and Commission, bringing out how it leads to
tourism sector, India's balance of payments negative value added, the concerned minister
(BoP) surplus doubled to $1 .8 billion on the also moralized, saying tell me what happens in
current account for third quarter ended ordinary prices. We did bringing out the profit it
December 31, 2003 over the same period would make, but simultaneously the tax loss to
previous fiscaL The earnings from software
the government with its misdeeds. As the
services, including BPO, was pegged at $3.47
developing world takes the moral high ground,
billion in Q3 compared to $2.92 billion dollars in
because we are no longer scared of markets and
July-September 2003 quarter, RBI said. Receipts
know our strengths in competitive games, the
from travel sector more than doubled to $453
arguments on the other side resemble political
million vis-a.-vis $223 million dollars in Q2. The
kitsch. In India this argument has been going on
break-up of various heads that make the forex
for some time.
reserves of the country reveals that foreign
investment including portfolio investment and
In 1996, in a published report, the World Bank
FDI went up by $10.1 billion d u r ing
released new estimates. " Accelerating a trend in
April/December 2003 compared to rise of $3.1
the mid-1980s, the 1991 economy-wide reforms
billion-during the same period last year.
According to RBI, there have been significant virtually eliminated the anti-agricultural bias

changes in the pattern of flows during the period implicit in the trade and foreign exchange
April-December 2003. It said the current account regimes . " These are the kind of concepts
surplus increased to $3.2 billion during April­ Panitchpakadi has used. As Jagadish Bhagwati
December 2003 from $2.9 billion during April­ has been arguing, the WTO does not do much
December 2002. Similarly, there has been a sharp study itself and has to rely on the World Bank or
rise in the net inflows through the capital OECD kind of organizations for its concepts. The
account heads at $17.8 billion during April­ World Bank makes this point somewhat
December 2003 as against $9.7 billion in April­ emphatically for India, which we repeat, since
December 2002. (The forex reserves as of some commentators deny, this conclusion "The
December end has passed the crucial $100 billion estimated mild protection of agrkultural earlier
mark, rising by over $25 billion from the April studies which indicated much higher leyels of
2003 levels: IT, tourism drive India's BoP relative price discrimination", There is rio way
surplus, DH-B, 2.04.04, U 00) that that issue of subsidy can be avoideq. most
certainly not the large ones given by the ED at
A stranger event took place on the road from '-'
economic prices. Also India will have to
Cancun to Geneva. Not commented upon in
negotiate its own interests. The EU, the US, New
India, it is still important, because the issues
Zealand and other countries have been sharply
have been the subject of much vexed debate in
raising these issues in the discussions on India's
this c o u ntry . E u ro p e a n Union Trade
Trade Policy Review, and more is sure to come.
Commissioner Pascal Lamy, one of the most
The debate between Lamy and the, director
powerful men in global trade negotiations,
general of the WTO will have to be understood
lambasted Supachai Panitchpakadi, none other
in India. (From Cancun to Geneva, Yogrnder K.

I
than the director general of the World trade
Organization, for engaging in " dangerous
AZagh, I.E-D, 7. 04. 04, UOO)
Indicating that he was engaged in a "strategic countries than developing countries. The G-20
dialogue" with key countries on trade issues, Mr. has made a submission at the WTO demanding
Zoellick downplayed the idea that the U.S. was changes in the draft. The framework agreement
trying to zero in o n any particular "hold-out expected to be signed at the GC meeting next
country". While "first step" had been taken to week will attempt to re-Iaunch the Doha
climb back from Cancun, the task of clinching a negotiations which got deadlocked at the
multilateral accord is something, by the nature Cancun meet. The group was formed just before
the fifth WTO ministerial meet in Cancun,
of the WTO that we all have to do together. The
Mexico, last September to counter the EU-US
Asia Pacific Economic Cooperation (APEC)
alliance in agriculture. (India to stick to G 20
forum in Bangkok took the first step. Alliance on Agri Issue At WTO Meet, Ami ti Sen,
FE-B, 26.07.04, U 30)
The Singapore Trade and Industry Minister,
George Yeo, said "it will be very good if we can The country's national parks and sanctuaries
put the (Cancun) round back on track by the end will now become accessible to high-end foreign
of the year". Mr. Zoellick said that his talks in tourists and Indian travellers. Keen to tap the
Beijing showed that "the u.s.' and Chinese potential o f struc tured wil d l ife tourism
positions overlap quite welt actually, in terms of initiative, the Taj group has joined hands with
their overall interests". He underlined that he Conservation Corporation Africa (CC Africa)
was "really inclined to listen to others, each step and Cigen Corporation, a part of the Chaudhary
along the way" in the climb-back from Cancun. group, to expand into yet another segment of the
"What all of us (in the mul tilateral arena) have hospitality industry. All .the three players will
recognized is the need to combine working in have an equal shareholding in the joint venture
Geneva with working in the capitals". (Zoellick company. CC Africa is a leading eco tourism
for s tra tegic dialogue o n global trade, company operating 38 high-end game lodges in
P.S.Suryanarayana, m.B, 15.2.04, U 00) South Africa, Kenya, Tanzania, Zimbabwe,
N a m i b ia, B o t s w a n a . The N e p a l - b a s ed
Chaudhary group has interests in food and
U30 Gats / World Trade Organisation
beverages, financial services, infrastructure and
India has decided to stick to the G-20 alliance of the hospitality sector. The Chaudhary group and
developing countries to forward its interests in the Taj group are partners in Taj Asia Ltd, which
agriculture at the General Council meeting of the is the vehicle through which the partners own,
World Trade Organization (WTO) instead of operate, and plan to expand their hospitality
making individual moves. Commerce and interests in the South Asian and Asia-Pacific
Industry Minister Kamal Nath said that the G-20 markets. The project would have a strong
had a lot of credibility and India was confident community focus wherein the local population
that its interests would be fully taken care of by would be given employment and roped into
the alliance. "The G-20 representations anti-poaching activities. (Taj groupiforays into
harmonize the diverse interests of its members. wildlife tourism, BL.B, 5.08.04, U 30'/
That is whv i t has so much credibility." The G-20
alliance co�prises 20 developing co �ntries from India has criticized the draft framework for
across the globe including India, Brazil, China, negotiations circulated by the World Trade
Egypt and Argentina. The group was formed Organisation (WTO) on the grounds that it did
just before the fifth WTO ministerial meet in not provide the required balance, fairness or
Cancun, Mexico, last September to counter the equity between the provisions for the developed
countries and those of developing countries in
EU-US alliance in agriculture. The alliance has
the area of agricul ture. In a statement issued the
taken a strong exception to the first draft of the
commerce ministrv said that mucll work needed
framework agreement brought out by the WTO to be done to mak� the draft accep\able to India.
last week on the grounds that it was more

I
The framework for negotiations is dxpected to be
representative of the interests o f developed finalized when the General Coun:dl of WTO

-
meets on July 27. The statement pointed out that India aims to almost double its annual bilateral
there was a greater level of specificity on matters trade with Germany to $10 billion by the next
of interest to the developed countries and a fiscal, Union Commerce & Industry Minister
greater level of generality in respect of the Kamal Nath said while addressing the Indo­
special and differential treatment (S&DT) German Chamber of Commerce and he stressed
components of the developing countries. "\Vhat the need to tap latent potential in the small and
is disappointing is WTO WATCH the lack of medium enterprises of the two countries to boost
a p p re c i a t i o n of developing c o u n tr i e s bilateral trade, currently valued at $5.5 billion.
sensitivities in agriculture especially where the India currently exports merchandise worth $2.5
rural population is dependent on agriculture for billion to Germany, while imports stand at $3
their food and livelihood security;" the billion a year. If this is combined with German
statement said. investment, I see tremendous scope for
cooperation in infrastructure, roads, ports and
India warned that these issues have to be energy. It provides a win-win situation. The very
suitably addressed in the next few days during investment increases trade and the result of that
the negotiations if there is to be a consensus on investment also increases trade. Germany had
the agriculture framework "We shall be working emerged the sixth largest foreign investor for
with the G-20 on agriculture and jointly put India with annual approvals worth $2.5 billion
forward our concerns in the discussions at and actual inflow of investments of over $1
Geneva," the statement added. In other areas of billion, he observed noting that in terms of
NAMA (Non Agricultural Market Access), foreign collaborations approved in India,
Singapore issues, implementation issues and Germany was second only to the US. (India
special and differential treatment (S&D), India is plans to enhance trade with Germany: With
ready to work with other members of WTO in annual approvals worth over $2.5 billion,
order to arrive at a consensus. The draft
Germany has emerged as sixth largest foreign
framework is a first text and underlines the
investorfor India, DH.B, 30.9.04, U30)
explicit recognition that this would be only a
U 40 International Aid (Bilateral)
basis for further negotiations in view of the fact The World Bank is supporting the Bangalore
that serious divergences in positions of the WTO Water Supply and Sewerage Board (BWSSB)
;"
member countries have emerged as reflected in with an Rs 100 crore loan for a project that would
the c u rr e n t s t a t u s o f t h e n e g o t i a t i o n s . .......
provide Cauvery waters to seven city municipal
Negotiations o n the draft started i n Geneva councils (CMC) and one town municipal council 't::
(WTO headquarters) on Monday and an (TMC) around Bangalore city. Thi9 assistance to �
amended version of the draft, which will be the water project is part of the Bank's rec�ntly
produced after incorporating the responses
't::
sanctioned $39.5 million loan to the Iridian
of WTO members, will be considered by the government and comes with a twenty?year ,
General Council of the WTO next week. maturity period and a five-year grace period. �
The project is expected to provide 100 mId �
The WTO General Council put forward on July (million liters per day) of water to 1 . 5 million
16 a draft framework for negotiations in the people. Under the project, around 15 lakh ' -
WTO in various sectors for the consideration of connections would be provided to residents of

members with a view to making progress on the CMCs and the . TMC. This water project is (
Doha work programme, which was stalled after
the Cancun ministerial meeting in September
expected to cost a total of RS 698 crore (with Rs
355 crore for water connections and Rs 343 crore
§
2003 ended inconclusively. (India Denounces for sewerage) . Rs 78 crore would com� fr9m the

I
vVTO Draft For Negotiations, FE�B, 20.09.04, U state government while Rs 1 20 crore would from
30) CMCs and TMC.


The Karnataka Urban Infrastructure and another $200 from the European Commission.
Development Finance Corporation would Ranjit Bannerji, joint secretary in the Ministry of
extend Rs. 45 crore towards the water supply Finance, and Michael Carter, country director of
project. World Bank's support includes technical the development World Bank, signed the
assistance for Karnataka government's sector agreement. ($ 500 M World Bank loan for
reform agenda and preparation of follow on elementary education, FE.B, 4.6.04, U 41)
inves tment projects as well as p hysical
investments in the three urban local bodies to With a kitty of about $3 billion assistance for
Improve' bulk water supplies. India over the 2005-08 period, the World Bank
has sharpened its focus on helping to improve
Incidentally, the World Bank has also exte�ded the quality of life for some of the world's poorest
a. 5152 million loan to sponsor the second citizens and help India move closer to achieving
Karnataka rural water supply and sanitation, the Millennium Development Goals.
project to increase rural communities' access to Drawing on the Prime Minister, Manrnohan
sustainable drinking water and sanitation Singh's address to the nation, the World Bank
services. The other World Bank supported Vice-President for the South Asian region, Praful
projects in Karnataka include: 5360 million loan Patel, told media here today that the Bank fully
to s u p p o r t K a r n a t a k a S t a te H i gh w a y s agreed with Dr. Singh's contention that equity
Improvement Project, aimed at upgrading the and efficiency were not contradictory, that
state's highway network; 5100 million credit for reforms meant both freeing private enterprise
the Karnataka Watershed Development Proj ect and improving government effectiveness and
(aimed at improving the productive potential of that social objectives and fiscal discipline were
selected watersheds) and the Karnataka tanks' actually complementary. This finds reflection in
community management project with a loan of the new Country Assistance Strategy (CAS) for
$99 million. According to the Bank's website, India, which emphasizes on i mproving
World Bank's baking in the water project would Government effectiveness, investing in people
enhance the efficiency, management, and and empowering communities and promoting
delivery of water supply and sanitation to private sector-led growth. "All of these reflect
Karnataka's urban residents. (World Bank India's own priorities and development goals,"
Support for Bangalore Water Supply, FE.B, he said. We will use these inputs to refine the
3.05.04, U 40) draft, which would then be finalized and
discussed by the Bank's board of director5.
U 41 World Bank (World Bank sharpens attel1tion on poor, TH.B,
The World Bank has agreed to provide a $500- 26.6. 04, U 41)
,
million credit line to India for its $3-5 billion
The World Bank has increased its funding
universal elementary education programme.
commitment to India by $1 billion tQ.s2.5 billion
C a l l e d the S a r v a Siksha A b h i y a n, t h e '
for 2004-05 from the pr�vious year's $1.5 billion.
programme aims t o achieve universal enrolment
The bank has short listed Maharashtra, Madhva
and completion of elementary education - for
Pradesh, Tamil Nadu, Karnataka and Assam for
children between six and 14 years of age by 2010.
funding various projects in infrasttucture power
It also aims to reduce by at least nine million by
and road, agriculture and rural lievelopment,
June 2007 the huge number of children who dro p health and water supply. World Bank India
ou t of school, narrow the existing gender and
director Michael Carter told that as per the
social gaps, and enhanc6 the quality of education
World Bank's calendar year ended on June 30, its
for all s tudents. The government is also
c o m m i tment to vari ous s ta l'ie s for t h e
expecting a $300-million grant from Britain's
implementation o f projects from physical and

I
Department for International Development, and
social infrastructure stood at $1.5 billion.
·r ·
. ,.
c':__

.t
'

another $200 from the European Commission. "For the calendar year July 1, 2004-June 30, 2005
Ranjit Bannerji, j oint secretary in the Ministry of the bank's commitment will be close to $2.5
Finance, and Michael Carter, co untry director of billion for India. He also said that the World
the development World Bank, signed the Bank would finance agricultural project in
agreement. ($ 500 M World Bank loan for Assam, which aimed at increasing prod uctivity;
elementary education, FE.B, 4.6.04, U 41) similar project is being considered in Uttar
Prad e s h . He informed that National
With a kitty of about $3 billion assistance for Agricultural Technology project was also being
India over the 2005-08 period, the World Bank implemented across India and the bank would
has sharpened its focus on helping to improve also provide assistance in the field of irrigation
the quality of life for some of the world's poorest sector.
citizens and help India move closer to achieving

I
the Millennium Development G oa l s . Mr. Carter hailed the United Progressive
Drawing on the Prime Minister, Manmohan A l l iance (UP A) government's Common
Singh's address to the nation, the World Bank Minimum Programme (CMP), which focuses on
,
Vice-President for the Sou th Asian region, Praful rural and agricultural development besides its
Patel, told media here today that the Bank fully resolve to continue the economic reforms with
I
I
agreed with Dr. Singh's contention that equity human face. "Overall the bank's assistance to i
and efficiency were not contradictory, that rural development is focused on attacking
reforms meant both freeing private enterprise poverty and increasing access to natural
and improving government effectiveness and resources in an environmentally sound manner.
that social objectives and fiscal discipline were This can only be achieved by engaging
actually complementary. This finds reflection in communities and the rural poor in the process,
the new Country Assistance Strategy (CAS) for sharing knowledge, and c onveying best
India, which emphasizes on improving practices at local level. According to the World
Government effectiveness, investing in people Bank's CAS for India for 2004-08, major fiscal
and empowering communities and promoting reforms at needed to reduce central state fiscal
private sector-led growth. "All of these reflect deficits, to reorient public spending towards
India's own priorities and development goals," public investment and non-wage operations and
he said. We will use these inputs to refine the maintenance to improve the qu ality and
draft, which would then be finalized and efficiency of government spending, and to
discussed by the Bank's board of directors. increase revenue mobilization simplifying tax
(World Bank sharpens attention on poor, TH.B, structure, eliminating exemption, b'ring services
26.6.04, U 41) into the tax net and implementing a \lalue

The World Bank has increased its funding Added Tax. (World Bank Hikes India Funtling,
commitment to India by $1 billion to $2.5 billion Sanjay Jog,FE.B, 8. 7.04, U 41). .'.
for 2004-05 from the previous year's $1 .5 billion.
The bank has short listed Maharashtra, Madhya First, the good news India ranks among the top 5
reformers in the world for the year 2003. Now
Pradesh, Tamil Nadu, Karnataka and Assam for
funding various projects in infrastructure power the bad India ranks 120t.'-l on ease of doing

and road, agriculture and rural development, business out of a total of 145 countries su{Veye d

health and water supply. World Bank India by the Monitoring AnalysiS and Policy Unit.

director Michael Carter told that as per tJ:>, e (MAPU) of World Bank Group. The 'Doing

B usiness in 2005' report released on September 8
World Bank's calendar year ended on June 30, its
c o m m i tm e n t to various s ta t e s for the morning in Washington ranks China as. th� 42nd
most attractive destination for business. The

I
implementation of projects from physical and
report analys es the laws and regula tions that
social infrastructure stood at $1 .5 billion.
enhance or constrain business investment,
� .•.

In addition to improved level of access to


productivity and growth. The survey focuses on education and health facilities and increased
seven areas (the last two added this year): investments in other infrastructure, the project
starting a business; hiring and firing workers; will also bring opportunities and incentives for
enforcing a contract; getting credit; closing farmers to produce higher yield s and d iversify
business; registering property and protecting
their crops. Substantial employment will be
investors. India is the worst performer among
generated in both new construction and
South Asian countries- Bangladesh, Bhutan,
maintenance of roads. This project is consistent
Nepal, Pakistan and Sri Lanka - when it comes to
with the country strategy for India 'accelerating
time taken to start a business (89 days) and time
rural growth as a major engine for poverty
and cost of registering property. India is second
worst in dealing with insolvency and in reduction.(Rura l roads get $ 400-m boostfrom
enforcing contracts. World Bank, ET.B, 25.9.04, U41).

It takes 10 years to recover 12.5 cents to a $ in case The World Bank has finally announced its mid­
of a bankruptcy in India against 5 years and 25.8 course correction in its funding policy on India.
cents for Nepal, 4 years and 23.2 cents in In short, the World Bank has decided to shift its
Bangladesh, 2.8 years and 38.1 cents in Pakistan focus from the reform-friendly states like
and 2.2 years and 33.1 cents in Sri Lanka. On a Andhra Pradesh and Karnataka and decided to
more general level, the three key findings of the work with poverty-ridden Bihar, Jharkhand and
report are: businesses in poor countries face Orissa, Moreover, it has plans to continue its
larger regulatory burdens than rich countries, focus on Uttar Pradesh. The proposed strategy
payoffs from reform appear to be large, and was formulated after intense discussions with
heavy regulation and weak property rights deter
the government and ministries. It had also taken
women and young people from doing business.
into account the suggestions made by different
The 'Doing Business' report does not emphasize
segments including media and private sector
d er e g u l a t i o n, it argues for r e g u la t o r y
thr o u g h a phased c o ns ultation process,
simplification. "Good regulation does not mean
according to a World Bank statement.
zero regulation," it says. The report indicates it
takes a business in a rich nation an average of 6
procedures, 8 per cent of per capita income and The new strategic focus of the Bank includes
• The Bank will ensure that all the 'largest
27 days to get started. On the other hand, in
South Asia the averages are 9 procedures, 45 and poorest' states are engaged in a
(Ease
percent of per capita income and 47 days. dialogu e on cross-cll tting reforms;
Of Doing Business In India Still A Mirage: • It plans to build productive.development
World Bank Report, FE.B, 9.9.04, U 41) �
relationship with four st tes - Bihar,
Jharkhand, Orissa and Uttar
,"'""
Pradesh -
The World Bank has approved a $400-million where poverty is increasingly
package of assistance for the development of concentrated;
rural roads in India. The main objective of this • It will continue its support for achieving
project is to provide increased access to markets
the objectives of Millennium
and social services by the rural pQPulation. The
Development Goals : (MDGs) by
loan will support the Pradhan Mantri Gram
providing state-level adjustment lending;
Sadak Yojana (pMGSY) - aimed at providing
• The Bank plans to channel its lending to
road infrastructure to rural areas. This is the first
assistance from the bank for the national states on the basis of guidelines set out for
programme on rural roads and further support the sector-specific conditions, which

I
is expected. necessitated due to p; evious experiences .
The Bank's board of executive directors of ensuring an adequacy of international
extensively discussed the Country Strategy for liquidity. However, this is precisely what the
2005-08 for India before releasing it for public. U.S. is now obliging the IMF to do. Developing
The Bank's strategic approach is to help the countries have been less than enthusiastic about
country to achieve its development goals and the new tasks handed over to the IMF but, as in
indicates the level of assistance that would be other matters, their reservations have been over­
provided . (World Bank Makes Mid-course ruled. (Status quo at the IMF and World Bank,
correction In Fundingpolicy, FEB, 28.9. 04, U 41) TH.B, 28.4.04, U 42/41)
U 42 International Monitoring Fund (IMF)
Sounding a note of caution for India's policy
This year marks the 60th anniversary of the
planners, a study by International Monetary
founding of the International Monetary Fund
Fund has advised against hasty privatization
and the World Bank. While this is as good an
and liberalization saying a 7 per cent economic
occasion as any for a rethink on how the two
growth could still be achieved while avoiding
institutions have been functioning, there was no
the mistakes of Latin A m e rica . Hastily
evidence of such a review at their annual Spring
embarking on an overly ambitious agenda of
Meetings in Washington. If anything the signs
economic liberalization and privatization
were o f the Bretton Woods institutions
should be avoided if India wishes to achieve
continuing to function on the direction of the
seven per cent growth rate. The paper said that
Group of Seven advanced economies and not the
kneejerk reaction of many economists to move as
184 countries that are the shareholders. Once quickly and broadly as possible in areas such as
more, the search for a new Managing Director of privatization, especially in infrastructure
the IMF has been taking place not in an open and sectors, labour market reform and capital­
transparent manner but according to a tradition account liberalization has to be tempered with
decided upon by the Cnited States and west serious empirical analysis and an appropriate
Europe: the chief of the World Bank would be concern for social an distributional impacts.
from the former and of the IMF from the latter. However, it pointed out that reforms in India
The numerous calls from the governments of had grown out of the stage from being crisis­
d e v e l o p i n g c o u n tr i e s , a c a d e m i c s a n d driven to success driven, which makes it more
independent experts to make the selection likely that they will be sustained and not s ubject
process more transparent have fallen on deaf to major reversals. Economic growth is best
ears, the IMF preaches good governance, sustained by keeping the private.!3ector excited
transparency, a n d i n c l u sivene� s to the about investincr in the local economy. (L"IF
{)
developing countries but is not following the Study Cautions India Against Hasty Ref.onns,
,.
same standards in the selection of its chief. FEB, 31.7.04. U 42)·
Indeed, the U concern with terrorism has
thrust yet another responsibility on the IMF. The U 43 Asian Development Bank (ADB)
organization has been looking to augment lend "Tax the rural rich to help the rural poor" This is
able resources and has had to close one lending Asian Development Bank's mantra for the
facility, yet a decision has been taken to entrust it crovernment to increase tax collection and widen
with the job of tracking money laundering and fhe tax net. 4\DB also suggested that F,in Min
the financing of terrorism. Both challenges are should focus on debt restructuring to tackle the
no doubt important but this is a job more for the ballooning fiscal deficit. According. to Dr
U.N. than for L1e IMF. A frequent criticism the Sudipto Mundie, ADB's chief economist for
U.s. makes of the IMF is that the organization India and deputy country director, "TheJ.e is no
reason why the rich and moneyed farmers

I
h a s d i lu te d i t s mandate by taking on
responsibilities far beyond its original charter should be exempted from paying tax while small
traders are required to pay them." Meanwhile, approved. ADB will be offering the loan as
ADB pointed out that the direct and indirect tax financial assistance to overcome capacity
policy structures have already been simplified bottlenecks, improve operational efficiency and
and rationalized with the aim of widening the support implementation of reforms to improve
tax base and promoting voluntary compliance. commercial orientation. Delineating social and
The ADB has pegged its total ai d to India in the
commercial objectives and identification of
next four years at $8 billion. (Tax Rural Rich
public service obligations, tariff rationalization,
ADB, Mahua Venkatesh, FE.B, 2. 7-04, U 43)6
rightsizing staff strength, restruc t u ri n g
pro duction uni ts, re-engineering internal
Asian Development Bank (ADB) assistance to
the Railways will be coming in three phases. In business processes and customer interface and
the first two phases, the quantum of assistance strengthening investment planning were the
would be $600 million out of which a loan other areas of reforms. (ADB offers aid to
amount of $ 313.6 million, which has been upgrade railways, FE.B, 10.8.04, U 43)

X CULTURE AND SOCIETY


X 11 SociaJfPoIitical System The prospect of panchayats getting funds
The World Bank, in its report - India: Fiscal directly from the Centre is making states sit and
Decentralization to Rural Government - has said pay heed to fixing the lacunae in their
that the Panchayats should adopt 'hire and fire' Panchayati Raj systems, efforts are on to
policy to enable the local administration to deal complete their activity mapping fixing definite
with resource crunch so as to control their roles and responsibilities within the system. At a
round table held in Mysore the second on
budgets better. "Local governments should have
decentralization the ministers and secretaries for
power to hire, fire a n d d e t ermine the
rural development and Panchayati Raj from 23
c ompensation level for their employees," the
states, besides union Panchayati Raj Minister,
report said, adding that without this power, the
Mr. Mani Shankar Aiyar, states agreed to
gram panchayats cannot control their budgets consider allowing Panchayats to lease common
and handle the serious resource crunch. land to private parties to set up rural business
hubs. (Panchayats May be Allowed to Lease
The bank pointed out that though gram Land to Pvt. Parties, Chitra Phadnis, FE.B,
panchayats had the constitutional mandate to 6. 09.04, XII)
perform the role of local self-governments, "they
do not have enough discretionary resources to The 73rd Amendment to thfi Constitution in 1992
do so in a meaningful way". The bank has also mandated a three- tier structure of panchayats
suggested that states should "avoid" devolving from the village to district in the w�ole country.
responsibilities to panchayats for scheme Articl e 243G therein expects '. that s t a t e
designed c o m p l e t e l y by a hi gher-level panchayats laws will endow pancbayats with
government. However, it has asked the states powers and authority to function as institutions
of self- government. This Article further says
and higher level of governments to 'refrain' from
that such law provides for devolutions o f
u n n e c e s s a r y i n te r v e n t i o n i n the gram
p o w ers a n d r e s p o n s i b i l i ti es, f i r s t , f o r
panchayats matters except to monitor their
preparation of plans for economiC develop pent
performance in shared schemes the report a n d s o c i a l j u s t i c e a n d, ' s e c o n d , f o r
further states that the gram p anchayats should implementation, o f schemes ,fo r economic
be allowed to spend public resources according development and social justice . that may be
to their priorities. ( (World Bank for Hire & Fire entrusted to them. Schedule XI gives an

I
Power to Local Govts, FE.B, 23.06.04, X11) illustrative list of 29 matters for stich devolution.

-
r
. ,
.
,

These exhortations would have produced quick for basic social services and local infrastructure
results if the central and state governments were be transferred to panchayats, untied to any
keen to have panchayats deliver services to the schemes. (Downsize Ministries Dealing with
local population, except where, because of the panchayats, Panchayat functionaries are still
nature and size of work, it has to be done at a vulnerable to the arbitrariness of officials
higher level. But if we remind ourselves of the scrutinizing their functioning; Nirmala Buch,
background to this Constitutional Amendment, FE.B, 22.09. 04, Xll)
we should not to be surprised at their reluctance X 12 Tribes and Development
to make panchayats strong, autonomous and The Supreme Court put brakes on the Centre's
self-governing. Auton o m y to p l a n a n d orders regularizing encroachments in forests
implement needs resources and authority. and giving land rights to tribals. If implemented,
Immediately after the constitutional the o r ders i s s u e d by the Ministry o f
amendment, the Centre introduced the MPs' Environment and Forests, aimed
Fund of Rs. 1 crore each (now Rs. 2 crare) , States at wooing the tribals, would threaten the forest
have similar discretionary fund schemes for cover in over two-Iakh hectares land. (Sc spoils
their ministers and MLAs and sometimes even centre's plan to woo triba ls with forestland,
for mem bers of other elected bodies. These funds IE.D, 24.02.04, X12)
are no longer available for pl anning by
panchayats or by any other planning bodies. The Union Ministry of Tribal Affairs has
clarified that it has yet to finalize the national
The panchayats receive two types of funds at policy on tribals and what has been put out on
present. First, the funds recommended by the the website was only a draft to elicit the
Eleventh Finance Commission, released to them suggestions and vfews of NCOs and others
on the basis of their population. The state finance working in the field of tribal welfare. A
commissions recommended grants, as accepted spokesperson said the Ministry was open to any
by the state governments concerned, which may constructive suggestion for modifications and in
appear as large funds when seen as a total sum, this regard had proposed to hold four regional
but not too large with the number of gram level seminars. The Mi..'1istry, was highly
panchayats (CPs) and the population of their sensitive to the problems of tribals and had taken
rural areas. Some of the states and district up their cause with other Ministries. Steps had
administrations also find ways of earmarking been taken with regard to the development of
these funds for priorities decided by them. The forest villages and conferring ownership of land
Constitution's clear mandate for efficient,
and minor forest produce to tribals. (Policy on
transparent, responsible, accountable to local
tribals not yet fina lized: mihistry, DH.B,
overnment requires that central and state funds
28.09.04, X12)

Tourism and tribal rights ,


Tourism has fetched some benefits to tribal areas, but its overall impact has been negative
In Barra Panchayat of Visakhapatnam district, are among the worlds largest. Dating back to the
Paleolithic Age, the caves, spread over two square kilometers, have been sacred to the tribal people
of the region ever since a shepherd chanced upon a stalagmite in the shape of a Siva 'linga' deep
inside the caves several years ago. Now, with the Andhra Pradesh government promoting tourism
in the area, the caves themselves have become a major livelihood issue for the tribal people.

In 2002, the government, in order to " beautify and maintain" the caves, cemented the floor, lit up
the interiors with 74 halogen lamps that bum throughout the day, and stopped giving the\ tribal

I
people their share of the fee collections as it wished to "get back the money invested" ,
The entrance fee was raised to Rs.25, and a fee of Rs.IO was collected from tourist using a still
camera and Rs. LOO for a video camera. The caves were also "rented out" for film shooting at Rs. I
0,000 a day. Twenty tribal people were "appointed" as guides on a contract, which expires this
year, by the

At the entrance to the Borra caves. Tourism Department on a monthly salary of Rs.3, 000, that is,
at the rate of Rs. lOO a day. As per the contract, the guides have to work from 9 a.m. to 9 p.m. and
even a day's absence would entail a Rs. lOO cut from the salary. The tribal people had no choice
bu t to accept this offer although it meant a su bstantial drop in their income.

According to Ravi Rebbapragada, executive director of the non-governmental organization


Samata, the Tourism Department gets Rs.25 lakhs annually from entry fees. Had it continued the
earlier arrangement of giving the guides 25 per cent of the entrance fee collected, they would
have got an annual income of Rs.6.25 Iakhs. Also, they would have been stakeholders and would
not have felt alienated from the development of the area.

According to guide J. Pandu, during peak season (April to December) over tOOO tourists visit the
cave every day and some 150 during the lean season January to March). Between mid-November
and mid-December, during the Karthigaj festival season, the numbers touch 2,000 a day.
According to guide RB. Ramachander, on some day's during the peak season the collection
touches Rs. 1 lakh. Says guide P. Anand: "We have made representations to the Tourism
Department about giving us a share in the earnings. Our Panchayat has decided to launch a
struggle if they do not relent by the year-end, when our contract ends." Says Indore: "Nothing
works without a struggle."

The income from tourism seems particularly important to the tribal people, as there income from
farming has fallen owing to intense film shooting in the area. According to K Venkat Rao,
secretary of Tribal Education Rural Development Society (Terd), one of the 10 community based
organizations under Samata, several popular films in Telugu and Tamil were shot in these
locales. So much so that film shooting itself has become a major tourist attraction. In fact, the
government did not want to dismantle the sets of the popular films hoping to attract tourists.
The Tourism Department wanted to convert a 'botanical garden' on 250 acres into a pe�manent
structure bu t representations and dharma forced it to give up the idea. ;

According to T. Hari of Panasaputtu village, film shooting 'has spoilt our land". In order to put
up massive structures the topsoil, is heavily disturbed. This prevents seepage of water -and
affects the water level. Disturbance of the topsoil leads to a s ubstantial full in productivity.
According to G. Neelakandan of the village, this is a typical case where the local people are not
only alienated from development but are a victim of it. The tribal people are alienated from land
directly as well, with the government refusing them land pattas.

Tourism has fetched some benefits to tribal areas, but its over all impacts has been�negath'e,

_I
Frontline, Asha Krishnakumar, 24.9.04, K 12

>
T
!
To describe India as a country of amazing who would derogatorily look down on some of !

contrasts has become a bit of a cliche. Yet, the these countries should think twice, since the �
same nation that is admired for its diversity, human development track record of all these
plurality, tolerance and adherence to the highest nations is superior to that of ours.
norms of democracy is also a land of extreme
poverty, deprivation and inequality, not to Pace of human development
mention oppressive social structures. The latest At the same time, one is not for a moment
Human Development Report (HDR) of the arguing that there has been no progress made in
United Nations Develop ment Programme India. It could be contended that the pace of
released on July 15 is a case in pOint. The HDR progress has not been fast enough and few
has praised many aspects of Indian culture - the would disagree with the view that much
theme of the report is "cultural liberty in today's remains to be done to accelerate the pace of
diverse world" - while simultaneously painting human development in the country.
a pretty pathetic picture of the economic state of
the nation. During the decade of the 1 990s, the percentage of
the Indian population that had "sustainable
The bad news first access to improved sanitation" improved
Since the HDR is 285 pages long, roughly half of significantly from 16 per cent in 1990 to 28
which comprises detailed tables and charts, one percent in 2000, while the proportion of people
would necessarily have to be selective about the with sustainable access to an improved water
information chosen to highlight the contrasts source went up from 68 per cent to 84 per cent,
and contradictions that are evident in Indian according to the HDR. The country's adult
society. Let us start with the bad news first. Over literacy rate rose from just under half in 1 990,
the last two reports, India's ranking among 177 that is, 49.3 per cent to 61.3 per cent in 2002. Life
countries in terms of its Human Development expectancy at birth has gone up from 50.3 in the
Index (HDI) has remained unchanged at 1 27. first half of the 1970s to around 64 per cent at
The criteria used to devise the index include life present. The percentage of people in the country
expectancy at birth, adult literacy, school who were undernourished came down from
enrolment and per capita gross domestic roughly 25 per cent in the early-1990s to 21 per
product. Even among 95 developing countries, cent towards the end of the decade. However,
India is ranked 48 in terms of its human and the magnitude of the problem becomes evident
income poverty index. when one considers the proportion of children
below the age of five who are underweight; this
A glance at a few randomly-chosen countries figure is close to half, to be precise 47 per cent.
(with their HDI ranks) that have a superior I
human development ranking in comparison Y-
As far as the population below the povert line is
with India should serve as an eyeopener Chile concerned, betWeen 1 990 and 2002, ovet- one­
(43), Urugua y (46), Cuba (52), Mexico (53), third or nearly per cent of Indians subsisted
Russia (57), Libya (58), Tonga (63), A lbania (65), on less than one dollar a day while almost 80 per
Brazil (72), Columbia (73), Thailand (76), cent lived with income of less than $2 per day.
Lebanon (80), Peru (85), Turkmenistan (86),
Turkey (88), Tunisia (92), China (94), Sri Lanka If one looks at statistics of inequality, in 1999-
(96), Ecuador ( 1 00), Iran (101), Occupied 2000, the share of the richest one-tenth of the
Palestinian Territories (102), Algeria (108), country's population in total consumption was
Indonesia (111), Vietnam (112); Mongolia (117), 27.4 per cent while the comparable proportion
Nicaragua (118), South Africa (119), Egypt (120), for the poorest 10 per cent of the p opuiatlon was

I
Morocco (125) and Namibia (126). Many Indians under 4 per cent Praise in a different context.
Yet, the UNDP's HDR for 2004 has, in a different that India's performance " is particularly
context, lavished praise on India. The country impressive when compared with that of other
"has managed its diverse cultures with longstanding and wealthier democracies"
pluralistic policies and 15 official languages -
and made remarkable progress in economic The report also mentions that India and Canada
growth and in health and education," the report are two countries which have demonstrated that
states while debunking the myth that cultural a proportional representation system in the
diversity is an obstacle to development. The p o li t y "does n o t g u a r a n tee success ful
second page of the main report contains tl;ie accommodation, and a winner-takes-all system
following sentence : "Sectarian violence killed can sometimes be compatible with multinational
thousands of Muslims and drove thousands and multilingual federations".
more from their homes in Cujarat and elsewhere
i n India, a c h a m pi o n o f c ultural Both countries use other measures including
accommodation". affirmative action programme that include
reserva tion of government jobs for those
Despite its long secular tradition, the country belonging to the Scheduled Castes, Scheduled
has experienced considerable co mmunal Tribes and other backward classes - to ensure
violence with rising intensive the report points political representation to various groups.
that more than one-third (36.2 per cent) of the
casualties due to communal violence since 1954 What has been emphasized is the fact that India
took place between 1990 and 2002. \\-'hile has one of the longest histories of any country in
pointing out that India has been very cohesive implementing affirmative action pol icies.
despite its diversity, the report observes that Reservations currently cover nearly two-thirds
"modem India is facing a grave challenge to its of the India population. The OBCs, the largest
constitutional commitment to multiple and and most heterogeneous group, have been able
complementary identities with the rise of groups to greatly increase their representation in
that seek to impose a singular Hindu identity on legislatures , "through normal processes o f
the country". competitive politics". The report explains how
reservations have changed the nature and
It states that these "threats undermine the sense composition of the Indian middle-class.
of inclusion and violate the rights of minorities
in India today" and adds that recent communal A new political class
violence "raises serious concerns for the The beneficiaries of reservation currentlv
� '
prospects for social harmony" that would comprise a "new political class" that has th�
� "undermine the country's earlier achievements".
Congress party's monopoly on p0 't'er. There is
also an entire box in the HDR that deals with the
� ongoing debate over a Cniform qyil Code. It
� The HDR immediately hastens to point out that
mentions that the "arguments fo r women's
� these "achievements have been considerable". rights and principles of equality get entangled
The design of the Indian Constitut i o n with concerns for minority rights and cultural
"recognized and responded t o distinct group recognition", (Human Development Report- The
claims and enabled the polity to hold together Good news and bad news, Pfl;ranjoy Guha
Thakurta, BL.B, 27.07. 041 X22)
,
despite enormous regional, linguistic and
cultural diversity". The challenge lies in
X 22 a Right to Information
"reinvigorating" the cotL'1try's "commitment to •

People are 10si.:1g confidence in obtaining


inform ati o n under the St.a t � s R i 3 h t to
p r a c t i c e s o f p l u r a l i s m , i n s t i tu t i o n a l

I
accommodation and conflict resolution through Information Act because of gaping holes in the
democratic means", the report says. It points out law.

-
" \ r
The Lok Ayukta's office has repeatedly which is due to her. (Women's status in Goa
requested the state to amend the law so that looks down, GT.G,2 7.02,04, X31)
heads of government departments take timely
decision on citizens' complaints against officials X 34 Women and Development
who fail to furnish or d ivulge correct In December 1 992, when Parliament passed the
information. However, the Act does not provide 73rd and 74th amendments to the Constitution,
for any penalty or action against them if they fail making the panchayats and municipalities
to do so. This loophole has allowed the heads of "institutions of self government" and reserving
d epartments to sit endl essly, on these not less than one-third seats for women in these
complaints without deciding the appeals within bodies, it was hailed as the beginning of a silent
the stipulated 60 days. "Citizens should not get revolution. In 1994, all Indian states passed the
the impression that the government is only Conformity Act reshaping their Panchayati Raj
paying; lip-service to accountability and (PR) system according to the new amendments.
transparency." Under the Act, if the public Today, out of 3,200,000 members elected every
information officer of a department does not five years to panchayats and municipalities,
more than 1 million are women. Women head
furnish details sought by a citizen on time, the
complainant can file an appeal before the one-third of all local bodies.
appellate authority. The second level of appeal is Of course, there are aspects of PR that we can be
thenthe Lok Ayukta's office under the Act. So, legitimately proud of. The last 10 years have seen
when the appellate authority fails to decide the a steady inclusion of marginalized sections in
case on time, complainants then me their the decision making process from the village to
appeals before the final deciding authority, the district level. About 3 million women are
which happens to be the Lok -A yukta. (Right to now contesting the elections to panchayats and
infonnation Act has loopholes, says Lok municipalities; no mean achievement in a
Ayukta, TOI.M, 2S.03.04, X22a) hierarchical and male-dominated society. The
myth that only the kith and kin of known leaders
X 31 Status of Women (General) or those connected to them in some way will
The status of women in Goa is not all that rosy as enter the local bodies has also been proved
painted by government machinery. Goan wrong. The common complaint - it is the men
women though capable and talented lack "-
folk in the families who control the elected
opportunities by and large to unleash their "
women members may be partly true; bu t studies
potential. While work conditions for women are show that the situation is rapidly changing. The ',..;.
'.i

unfriendly, crimes against them have increased.


\:.:
number of women getting elected �rom general
On the other hand, government pays a lip constituencies ( d efeating men) i s a l s o
service to recommendations made by Goa State increasing. For instance, i n Karnataka, 4j, per �
Women's Commission and other NGOs in L"le �
cent of those elected to local government are

interest of women. "If we really want to women.

<.-

empower women, give them economic


The challenge facing India today is: Can it turn ry:
empowerment and freedom from ignorance and
the present phase of women becoming victims of
knowl edge for decision making. Women
oppressive structures into one of gender equity '-
generally s u ffer from lack of financial
and create a public life of dignity for all? It is


empowerment." Highlighting the importance of
encouraging that enlightened citizens, NGOs
woman in shaping the mind set and attitude of and the media are taking the initiative t9 meet
the younger generation, it is a paradox that on this challenge with some measure of success.
one hand the women is worshipped like a (Woman p ower- Silent Revolution in Lpcq l Self
goddess in a temple, on the other hand the

I
Government, George Mathew, TOI.B, 29.04.04,
society refrains from bestowing the grea tness X34)

......
Z MISCELLANEOUS

Z IO NGOS It is best for NGOs devoted to raising the quality


Such of those non-government organizations of public life to decline the membership of
(NGOs) as are working for clean politics and b o di e s fun c t i o n i n g under the aegis of
good governance need to exercise vigilance in government o r political parties, so as to ward off
order to preserve their independence and
extraneous influences on their work. Once an
faithfulness to the causes they espouse.
NGO fighting for, say, electoral reforms,
eradication of corruption, and accountability
The caution is not as self-evident and simple as it
and rectitude of elected representatives, public
seems. For the more effective and focussed a
reformist NGO is, the more is it likely to ruffle servants and corporate executives, is itself lured

entrenched vested interests that are affected or into becoming "embe dded" in the power
exposed by its activities. They may be anti-social 'structure, it loses all its credibility. (Look at the
mischief-makers, corporate bosses, and political fall from grace of the US media once it allowed
highfliers, ruling establishments or any coterie its correspondents to get "embedded" in military
or cabal with axes to grind. It is important for formations in Iraq. Apart from these traps, the
those running public-spirited NGOs to be domestic and foreign funding organizations
conscious of these risks and be on guard against
themselves may seek to use the NGOs .as cats'
overt or covert attempts at softening them, by
paws to promote their own agendas by d irectly
exploiting common human weaknesses. One
or deviously prescribing particular priorities,
such weakness is the desire to be one up on
approaches or courses of action. If it is
others. Another is the craving for invitations to
participate in national or international seminars remembered that some 21,000 NGOs have been

with all expenses paid. The third is to covet permitted to receive foreign contributions
official recognition by being made part of some amounting to an equivalent of more than Rs 5000
commission, committee, council or delegation. crore, the nature of the care and watchfulness
The fourth is to hanker after awards and honors required becomes obvious. Is it not time for a
conferred by governments, and national and code of conduct for NGOs to be drawn up and
international organizations. adopted? (Code for NGOs, BL.B, 16.7.04, Z 10)

I
ANN EXURE T
Annexure 1: Critique of EQUATIONS on Draft National Environment Policy 2004

Foreword We were one of the first signatories to the


The initiative of the Ministry of Environment & Convention on Biological Diversity (CBD) in
Forests to c o me o u t with the National 1992 and ratified it in 1994. The outcome has
Environment Policy [NEP] is commendable. The been the for m u l a ti o n of the National
concluding section [5.7: Review of the Policy] Biodiversity Strategy & Action Plan (NBSAP),
has made a provision for continuously evolving which the NEP has not taken into account, and
the NEP to a ddress b o t h n ational and found not even worth mentioning. Similarly it is
international developments and corresponding disconnected from international environmental
environmental issues. This provides a space in covenants like the Commission on Sustainable
future for all stakeholders to contribute to the Development l(CSD), UN's Agenda 21 and Man
evolution process. & Biosphere Program. Enormous efforts and
The premise of environment i s overarching and inputs from national and international civil
it has cross linkages with many other areas society groups and a g encies have been
beyond industry/ c o m merce and local neglected. However, it is noteworthy that the
communities issues. Therefore, a n environment Ramsar Convention on wetlands has been at
policy is comprehensive when it takes into least mentioned elsewhere.
account existing policies on other directly
related or indirectly related areas. This would be The NEP looks at inward linkages from other
applicable to policies both at national & environmental management policies as stated in
international levels. The NEP is very inward sec1 para 2. Although it mentions integration of
looking and watertight. environmental concerns in economic and social
development [3.iv & 4.:-<i], it is limited to only to
The NEP is development oriented and addresses agencies charged with implementation of
environmental protection from the viewpoint of environmental policies. It does not give policy
providing solutions in post mortem stage. The d irectives to a gencies involved in
process for ensuring minimum impact on the developmental activities like the Ministry of
environment from the preliminary stage is not Tourism and State Departments of Tourism. ;.,
clear from social, politicaL legal and economic The NEP has not mentioned its connections to "
angles.!t is alarming that ecotourism is being other policies like the National Tourism Policy,
proposed in areas where negative impacts and Industrial Policy and Education Policy. It
conflicts are being reported. provides a backdoor entry to "international :::;
There is omission of crucial habitats that are development partners II who are they a4d what ':;;
bearing the brunt of unplanned and unregulated role d o they have in environmental protection is
tourism development. skeptical �s international free trade anB open ,

Our commitments to ongoing international market regime� are demanding relaxation of r
conservation initiatives have been overlooked. already inadequate and d i l u ted existing ­
environmental legislations. The free trade laws
1. Preamble are also in contradiction to international
The r\EP only states our role in international e n v i r o n m en t a l covenants. Like t h e, (;
environmental initiatives and refers to national Envi onment l (P�otection) Act, 1
.� �
�86
it is no � an �
commitment to a clean environment. 'antl-mvestof' pohcy but IS commg at a tlme 'V ;
when the W o r l d Trade OrgaI!izfl tio n i s
Our commitment is also at the international demanding

I
level.
notorio u s for i t s opulence and wastefu l use of
'The CSD is an instrument to review the commitment of member
resources, be it direct consumption of water,
countries to the outcomes of the Earth Summit, Rio de Janeiro 1992, 'The
World Summit on Sustainable Development, Johannesburg 2002 has land and other natural resources, or indirect
provided guidelines forsustainable tourism development
consumption like that of wildlife. The conflict
harmonization of inter alia environmental laws here is between the uses of resources related to
to facilitate free trade. survival versus the lavish use of resources by
tourism industry. The industry is capable
Participation of experts and stakeholders in enough to bypass laws while the community
formulating the NEP is questionable. Section 6.0 does not posses the sophisticated skills in
has been left blank. Transparency a,n d bargainin g even for their basic rights.
p a r ticipatory principles demand that all " Favouritism" o f p o l icy makers and the
information is disclosed to the public and civil government machinery towards tourism is also
society a t all stages. evident. Also, the conflict that arises o ut of
modifications and amendments o f such laws to
2. Key Environmental Challenges: Causes and suit the needs o f tourism would jeopardize
Impacts conservation efforts, rational use of resources
The NEP has overlo o ked t o urism as an and survival of many of local communities and
impacting agent. Poverty i s made the primary endangered biodiversity.
accused here and the wasteful expenditure o f
Absence of regulatory frameworks for tourism
resources by affluent sections o f the society,
development in PAs/ non-PAs and any other
urban & semi-urban centers across the country,
heal thy, fragile, vulnerable or sensitive
and resource intensive activities like tourism is
ecosystems is evidently overlooked as one o f the
amiss.
causes and impacts.

Discussions on tourism development i n a 3. Objectives


country like India are to be seen in the context o f Environmental governance: how is this going to
what attracts tourism. The rich natural heritage be achieved is not clear in the Policy. The main
and biodiversity hotspots spread out along components of governance are its various
coas ts, backwaters, fores t s and mou ntain s takeholders. The nuances of understanding
" regions are major attractions on which tourism stakeholders i s absent and all have been
" industry banks. Protected Areas (PAs), which c a t e go r i z e d as p u bl i c aa
o
encies, l oc a l
� hitherto had seen limited tourist activities, are communities, investors and v o l u n ta r y
� targets of intensive tourism development. The o rganizatio ns. '
'N industry vouches its ability to boost the
4. Principles ;,
'" economic potential of these natural reso urces,
Under sub-section ii. Right to Develop ment, th e
, which were otherwise what the industry and
decision for agreeina to 0'0 in for d�elo pmental
� tourism proponents describe as 'idle' resources o c

activities needs to be elaborated u p on.


8" and the economic potential had remained
untapped.
With whom does this decision rest is a crucial
'- At the same time, these are areas where rural question not answered by the NEP. Many times
populations survive on the life supporting tourism plans are created at the state level or
reso urces. While d is c u s s i n g tourism central level and imposed on local communit:es.
development, the conflicts with biodiversity The commercialization of env ironmen t a l
conservation, natural resources and wildlife, services in v. Economic Efficiency would cpen
up a host of problems, as these are vulnerab;2 to
and the communities who survive on these

I
manipulations and distorti
resources arises in this context. Tourism i s OI; s. .
Assigning a economic value to wildlife for
protected areas and/ or areas of significant
instance, as has been done in the case of
ecological values like wildlife; though the kind
indigenous cultural aspects, would mean
of tourism being promoted and practiced is very
neglecting their roles in the i ntangible benefits
much mainstream tourism; only the locations
that they provide and objectifying them for more
have become much more fr� gile than the
tourism purposes.
cultural and resort-tourism destinations that
!he. d �cision rests with local community
had been developed in previous decades.
mstitutions and they can decide if they do not
Although ecotourism has a reference from the
want to adopt other developmental activities. If
economics of the tourism industry as a form of
yes, the kind and intensity of development is
nature-based tourism, it has been formulated
also decided by them. Such d emocratic
and studied as an instrument for s ustainable and
principles have not found place in the NEP.
equitable tourism by various individuals and
organizations. These studies have shown that
5.
Strategies and Actions
the impacts are far from conservationist or
Under 5.1.1. Revisiting Legislative Framework,
sustainable; indigenous communities still face
there is a possibility of further dilution of the
evictions f.rom within the wildlife sanctuaries
CRZ and ErA Notifications under EPA, which
and national parks; forest-produce gatherers
would open up areas for intense tourism
and pastoralists continue to be kept o u t,
development.
sometimes leading to c onflicts with the Forest
D ep a r t m e n t s . In such a scenario, the
The proposal for institutionalizing regional and
introduction o f tourism i n the same protected
cumulative EIAs under 5 .1 .3.1. needs to be
areas is, in a way, doing injustice to the whole
assessed after clearing existing flaws with the
conservation debate. Hence, the connotation to

met od in which EIAs are done and public
ecotourism is both conceptual and socio­
hearmgs conducted. Extrapolating it to the next
economic.
level would mean side-stepping the c urrent
Issues.
vVhen experiencing nature is redefined as
tourism - an industry thatis recognised as capital
Under 5 . 2 E n ha n c i n g a n d C o n s e r v i n g
intensive, it also raises serious c oncerns in the "
Environmental Resources
Deserts have been excluded.
absence of precautionary legal guidelines and �
principles. Under s u ch circumstances the 'so
5.2.2 Forest and wildlife areas are being targeted
practice of tourism can onlv be termed as mass '.;
for promotion of ecotourism.
tourism. The recent tenden�y to qualify tourism �

in ecologically sensitive regions, like the;forests �


The term ' ec otourism' was c oined by a
and the coast, as 'ecotourism' or 'nature tburism'
marketing a gency that was promoting Costa
is too vague a terminology as it is appliedfor the �
Rica as a rainforest destination and since then it
has been seen as a niche market by agencies like
convenience of tourism service providers . The . �
very reason why tourism industry opted for this v
the World Tourism Organisation, as it uses
terminology was because wherever tourism is
resources that are linked to biodiversity and
p ra c t i c e d it proved disastrous to the
cul tural pluralism of third world cou�tries,
environment, social fabric and promoted \j
which have been forced into tourism as a core
dehumanising situations like displacement, ( ,
co mpetency area by i nter-governmental
agencies for development. Ecotourism has come
marginalisation of local communities, siphoning §
of natural resources and violation of basic
to be mistaken synonymously with tourism in
human rights.

I
tourism providers today define ecotourism to
their convenience and advantage. A solar The NEP needs to draw policy guidelines from
heating system, water recycling unit or use of international environmental covenants for
paper bags is good enough for a hotelier to lay infusing sustainability and involvement of local
claim to the ecotourism label. However they communities in tourism development. The
would evade putting into practice certain B iodiversity and Tourism sub-chapter of the
broadly evolved and accepted norms of
CBD, the CSD & WSSD 's guidelines, UN's
sustainable tourism. This contradiction would
Agenda 21, Draft Declaration on Rights of
continue as long as governments see tourism as a
Indigenous Peoples and WTO-OMT 's Global
means to economic development and thereby
Code of Ethics for Tourism.
necessarily ignoring its impacts. Sustainable
tourism is based on principles of participation; "
Endnotes for Framework of values for sustainable
consultation and sharing of benefits among all
tourism development
stakeholders especially the local community on
whose resources ecotourism thrives. The Convention on Biological Diversity (CBD)
The CBD recognizes the need to eosme that tourism is developed and
managed in a manner that is consistent with, and supportive of. the
5.2.6 Islands A&N and Lakshadweep have been objectives of the Convention on Biological Diversity with regard to the
made to miss the bus. These islands are being conservation of biological diversity and the sustainable use of its
components, as well the basic concepts underlying the implementation
targeted for large scale tourism development,
of the Convention, such as the ecosystem approach and the sustainable
thus throwing them in peril. use of biological resources, as well as guidelines concerning the respect,
preservation and maintenance of knowledge, innovations and practices
of indigenous and :ocal communities for their well-being and survival.
. 5.2.7. (iii) a) mentions use of incinerators for toxic
The CBD affinns the need for benefits of tourism to be shared in a fair and
and hazardous wastes. It has failed to take into equitable manner with indigenous and local communities involved in, or
account the carcinogeniC effects of incinerator affected by, tourism development, and which therefore share in the costs
of such development.
emissions.
The UN's Agenda 21
5.2.7. (iii) c) refers the onus of solid waste The relevant chapters of the Agenda 21 that describe the Participatory
Approach are Cha?ter 26 that deals with recognizing and strengthening
the role of indigenous people and their communities and Ch p ter 34a
management to local bodies. What about
industries and agencies facilitating large scale outlines the proceduraJ steps for transfer of environ..'11entally sound
technology, cooperation and capacity-building.
infiltration of the wastes? Progressive measures
The Chapter 3 afthe Agenda 21 - combating poverty: enabling the ,0001' to
like Extended Producer Responsibility (EPR) to achieve sustainable livelihoods expresses lhe importance of ber:ef::
tackle the menace of plastics and other sharing with local cmnmunities.

TIle UN!s Commission on Sustainable Development's (CSD) sustainable


packaging wastes, especially i n tourism
destinations like Mahabalipuram where the tourism guidelines �
problem is of gigantic proportions, find no -

In 5(a), it states "Io promote sustaina ble tourism development in orde" to ':::
mention. And so do initiatives like Ooty increase the benefits from the tourism resources for the popu!ation in tr:e
Municipal Corporation to impose fines on host cOJnmunit�es and maintain the ;:ultural and envi;,o nen l

ty
r integ::i �
of the host community; to encourage cooperation of major groups at al!
plastic carry-bag users. .
levels with a view to facilitating Local Agenda 21 initi� ves and �
promoting linkages the local economy 1I1 order that her.elits m.1Y
within �
Biosphere Reserves have not found mention in be more Wldely shared; to this end, greater efforts should be um:ertak2r. ,�
any part of the NEP. This shows a careless for the employment of the ioeal workforce, and the use of local :Jroducts J
and skills."
attitude to our international environmental
commitments. Further, areas like the Gulf of And in "10. The Conunission invites the United Nations Secretariat ar..ci '"'
Mannar Marine Biosphere Reserve, which are the World Tourism Organization, in consultation with major groups and
other relevant international orgar.izations, to jointly facilitate �!ie f �
unique in the country. establishment of an ad hoc infonnal open-ended working group on �.
tourism to assess financial leakages and determine how to :na;<lmize \.2) 1 '
Recommendations: benefits for indigenous and local conununities; and to prepare a j0inr
initiative to imvrove information availability and capadty-build:r: s:: :OT
. Crucial habitats that are being targeted for
� p
participation, a d address other matters relevant to the-im lement;t:o;:

I
tourism development need to find mention in of the international work programme on susta'inable :0uris:n
the NEP . development."
.
consumptive and eco-tourism. taking into account the spirit 01 the
Interna tional Year of Eco-tourism 2002, the United Nations Year for
The UN-CSD's World Summit on Sustainable Development (WSSD) -

Cultural Heritage i n 2002, the World Eco-tourism Summit 2002 and its
FinalPlan oflmpltmtentaHon

The Plan of Implementation induded in the W%D Final Report, agreed Quebec Declaration, and the Global Code 01 Ethics for Tourism as
by Heads of State at JOhannesburg during September 2002, includes the adopted by the World Tourism Organization in order to increase the
following paragraph (No. 43) concerning Tourism: benefits from tourism resources for the population in host communities
while maintaining the cultural and environmental integrity of the host
Promote sustainable tourism development, including non-consumptive communities and enhancing the protection of ecologically sensitive areas
and eco-tourism, taking into account the spirit of the International Year of and natural heritages. The UN's Draft Declaration 0" Rights of ["dig,,,olls
Ecotourism 2002, the United Nations Year for Cultural Heritage in 2002, Peoples
the World Ecotourism Summit 2002 and its Quebec Declaration, and the
Global Code of Ethics for Tourism as adopted by the World Tourism The UN's Declaration on the Rights of Indigenous Peoples in Part V sets
Organization in order to increase the benefits from tourism resources for out the Tights of indigenous peoples to participate in decisions and ·
the population in host communities while maintaining the cultural and developments which affect them. Indigenous peoples must participate

environmental integrity of the host communities and enhancing the in, and give their consent to, decisions and law making that affect them.
protection of ecologically sensitive areas and natural heritages. Promote' They have the right to their own economic activities and to special

sustainable tourism development and capacity building in order to measures to improve their economic and sodal conditions. Part VI sets

contribute to the strengthening of rural and local communities. This out the rights of indigenous peoples to their land. They have the right to

I
would include actions at all levels to: maintain their distinctive spiritual relationship with their land, waters
and resources. They have the right to own and develop their land, waters

Enhance international cooperation, foreign direct investment and and resources, and to the return of land taken without their consent.

partnerships with both private and public sectors, at all levels; Their environment and their cultural and intellectual property must be
protected. Indigenous peoples have the right to control development of
I

I
Develop programmes, induding education and training programmes, theirland.
that encourage people to participate in ceo-tourism, enable indigenous
TheWTO-QMTsGIQbaI Code of Et�

I
and local communities to develop and benefit from eco-tourism, and
enhance stakeholder cooperation in tourism development and heritage The Preamble of the Global Code of Ethics in Tourism considers that

preservation, in order to improve the protection of the environment, with an approach to sustainable tourism. all the stakeholders in tuurism
development - nationat regional and local administrations, enterprises,

I
natural resources and cultural heritage;
business associations, workers in the se�tor, non-governmental
Provide technical assistance to developing countries and countries with organizations and bodies of all kinds belonging to the tourism industry,
as well as host communities, the media and the tourists themselves, have

!
economies in transition to support sustainable tourism business
development and investment and tourism awareness programmes, to different albeit interdependent responsibilities in the individua; and

!
improve domestic tourism, and to stimulate entrepreneurial societal development of tourism and that the formulation of their

development; individual rights and duties will contribute to meeting this aim.
,\.rticle 3 dealing w:th Tourism as a factor of sustainable development
states (in point 2) All fonns of tourism development that are conducive to
saving rare and precious resources, in particular water and energy, as
Assist host communities in managing visits to their tourism attractions
for their maximum benefit, while ensuring the least negative impacts or.
and risks for their traditions, culture and environment, with the support well as avoiding $0 far as possible waste production, shou:d be given

of the Wor;d Tourism Organization and other relevant organizations; priority and encouraged bv r,ational. regional and local public
authorities,
Promote the diversification of economic activitjes, including through the

The Global Code of Ethics in Tourism, Article 5: Tourism, a beneficial


facilitation of access to markets and commercial information, and

activity for host countries and communities states that: 1.


participation of emerging ;ocal enterprises, especially small and
medium-sized enterprises, Local
populations should be associated with tourism activities ar,d share
44, (b) Promote the ongoing work under the Convention on Biological
equitably in the economic, social and cultural benefits they generate, and
D1versity on the sustainable use on biologicaJ diversity, particularly in the creation of direct and indirect jobs resulting from
them.

At the national level, the NEP needs incorporate


Recommendations for any form of tourism
recommendations of the sub-thematic paper on
development should be on the basis� of careful
BiodiverSity and Tourism from the NBSAP.
evaluation and participation. i

The NEP needs to give see tor specific guidel ines for
The NEP needs give guidelines fd; tourism
regulation and development of activities like tourism
development in areas under protection of law
instead of opting for sub-components like ecotourism
as the panacea for negatively impacting factors.
and other regions not protected by law - healthy,
fragile, vulnerable or sensitive ecosystems, as in
including on sustai�able tourism, -�s a cross-cutting issue relev��� the case of the Wild Life (Protection) Act, 1972 's
different ecosystems, sectors and thematic areas.
provision in section 28(i) d . that generally
permits tourism in protected areas,

'
The sustainable tourism guidelines in the World Summit on Sustainable
Development in its Fir.al Plan of Implementation (point 43) states to
promote sustainable tourism development and capacity building in
order to contribute to the strengtherungoi rural and local commur.!ties. The NEP needs to be outward looking and
In the Final Plan of Implementation, the sustainable tourism guideEnes should address and link to exis g social and tir;

I
I
in World Summit on Sustainable Development. it outlines the need to
(point 43) Promote sustainable tourism development, including non- economic policies of India. ,
i
!
i
Annexure 2: Critique of EQUATIONS on Draft National Tribal policy 200482

Foreword However, it should develop specific Policy


1 . A Draft National Policy for tribals is indeed framework for those of the Sixth Schedule and
overdue. But it would be a huge mistake if the the Fifth Schedule. At the moment, the Draft
Central Government seeks to "assimilate" and Policy is confusing and unclear in its basic
"mainstream" ST communities. This is a clear approach for it lumps all these groups together.
contradiction: you cannot assimilate groups (in As a start therefore, the National Policy must
this case a larger group is seeking to "bring STs divide the "tribal groups" into the Fifth and
into the mainstream" without destroying their Sixth Schedule communities and make specific
distinct culture. recommendations for each group. The work of
the National Commission to Review the
2. The reason is simple: there are huge Working of the Constitution (Consultation
differences between tribal groups within a Paper on Empowering and Strengthening of
region as much as in different regions, not Panchay at Raj Institutions / A utonomo u s
merely in their demeanour and attitudes but also District Councils/Traditional tribal governing
in their culture, traditions and religion. institutions in North East India) would be
helpful in this exercise.
3. The tribes of Central and Western India are
completely different from tribal communities in Ove ralL the D raft Paper s h o u l d avoid
the North East, where there is better education nomenclature which is cliched and which
and other facilities and indeed, where tribal " tribal" groups would find'offensive and which
political elites have been in power for nearly 50 are also not politically correct. Phrases and
years as in the case of the Khasi, Jaintia and Garo words such as " mainstream", primitive" and
Hills, which became Meghalaya in 1972. One others of a similar lexicon should be abjured
could remark that the so-called primitiveness of because they give the i m p r e s s i o n that
the tribes is more in the Fifth Schedule states government regards such groups as outside the
where education, political awareness and pale of civilized society. It raises questions
empowerment as well as health facilities are about the so-called "mainstream" of other parts
extremely poor and income levels at the bottom. of India. What is this " mainstream" what
The "mainstreaming" of these groups, where language does it speak, what faith does it "­

their lands have been taken over by plains espouse, what history does it hold, what is its ,
settlers and others, has not really helped them politics. To regard groups as "outside the '-:::
very IlJ.uch. Indeed, it has devastated their mainstream" is, in my view, quite incorrect. �
culture, their environment and their social Those who see themselves in thJ? supposed
'-,:,
standing as well as economic status. There have " maInstream
, " may regar d t h emse
' I ves as �

become politically influentially in real terms "better" than others: this is a wrong approach, �
only in the past few years with the formation of which should be rejected forthwith.

states such as Chhattisgarh and Jharkhand. r::---.:
Others have benefited at their expense. It should be noted that many "tribal" are as
/I advanced and developed" as the so-called
4. Thus, a national policy for tribal can make /I mainstream " ; they find such' definitions -
general observations for the main, which would offensive as also descriptions of them as PTCf -:::
include " feel good factors" such as better (Primitive Tribal Groups this is how others se �,
education, non-interference in their essential them and not as they see themselves ). -....J .

I
lifestyles, improved health facilities and
..' . infrastructure without rpt without destroying One is not aware where the phrase Nehruvian
the ecosystems upon which they depend. Panscheel evolved. (Page one of Draft) The two
:
i
forewords by Pandit Nehru to Verrier Elwin's
Where will the funds corne for mid-day meals
book, A Philosophy for NEFA (Directorate of
Centre of States when the latter are heavily
Research, Government of Areunachal Pradesh)
indebted and raise no resources of their own (90
of 1957 and 1958 clarify that he believed in " five percent grant and 10 percent local resources) and
fundamental principles". Points two and three
they cannot even pay their employees on time
are quite specific while the others are not: 2.
Sixth point on teachers from distant places: the
Tribals rights in land and forests should be
policy must take cognizance of a reality that
respected (Fifth and Sixth Schedule) and 3. In
many teachers drawn their salaries without
Nehru's words not of the Draft Policy) "We
teaching and open put in replacements who get a
should try to train and build up a team of their
percentage of the salary paid to the "main"
own people to do the work of administration
teacher.
and development. Some technical personnel
from outside, will, no doubt, be needed,
Instead of Pedagogy, the Policy should speak of
especially in the beginning. But we should
Ed ucation. There is no need for such Latin words
avoid introducing too many outsiders into tribal when a simple English equivalent exists. Point
territory." The fact is that in most of the
seven and eight on curriculum and co­
Northeastern states s uc h as Meghalay a,
curriculum should be combined while last point
Manipur, Mizoram and Arunachal Pradesh
on vocational e d ucation should incl u d e
where tribals are a majority, it is the tribal
processed foods, floriculture, bamboo and cane
officers and specialists who are running the
processing/ development, headings under these
administration. The number of "outsiders" is a
last five heads not only have potential but also
bare handful.
are doing well. .

Spec�fic comments:
Traditional Wisdom
Formal Education�
The data relating to formal education is not It must be clarified that there will be no transfer
correct as far as the North East is concerned of knowledge to non-tribal areas without
where states such as Mizoram has the second ensuring that the repository o f such knowledge
highest literacy in the country, after Kerala. A and skills, especially in herbal medicines, is
survey of the statistics of the North Eastern protected by lawf the patent convention and they
Council would be relevant here. What the Draft get a return on their knowledge. Otherwise this
Policy has done and inappropriately is lumped should not be permitted. There have been cases
all the information on education etc. together for of foreign as well as Indian corporates (includes
all tribals. This is not a scientific approach to the those associated with people in Government)
problem. The draft policy must make it clear seeking to extract such information from hill
where the anomalies in backwardness lie in the herbal practioners for a price. This should ;;�e
Fifth Sched u l e areas in particular. The stopped. Therefore Point Three of Heath section
Northeastern tribal states are above the national on patents should be placed her e and
average except in a few areas. The overall rate is emphasized.
brought down by the CHJH states (Chhattisgarh
and Jharkhand as well as Gujarat) Health:
The program of schools and hostels to be opened
in areas where no facilities exist (see Formal AIDS is not a venereal disease as the 6t'n
line of the
e ducation section) is laudable what will first paragraph in this segment suggests. The
Government do in insurgency prone areas and phrase Primitive Tribal Groups must, be

I
disturbed areas where instability affects all exorcised from and banned from government
sectors of activity. lexicon. It is offensive and insulting. Surely
there can be other phrases to describe such any obfuscation and must involve the people
groups: such as Economically Backward or who are directly affected so that they have a say
Disadvantaged Groups among Tribes. The in their own future, instead of letting their lives
British coined such phrases as 'criminal tribes', be controlled by others who have little stake in
which has devastated the image and condition o f how they live or indeed where they live.
s uch groups; it is time, 57 years after
independence that we did away with such How are the displaced to be provided " a better
phrases. standard of living" (Para four). This should be
clarified.
It is inappropriate to combine such vastly
different sciences as ayurveda and siddha with Forest Villages
tribal herbal systems. Let the latter remain as is,
but with improved facilities such as OPDs, The proposal to convert forest villages into
research, places for growing their medicinal revenue villages appears well-intentioned buy
plants and making their potions etc. as well as likely to lead to more problems. These are the
herbal centres in each district where they can issues that should be discussed with local
practice. At the money, they are completely l e a d ers and representatives of affected
disadvantaged esp. on the NER where they communities.
reach c ommunities untouched by government
systems but get a pittance for their work and At no point during this section of the Draft
have no place, barring their poor homes, from Policy, does the policy say anything about
where they can see patients and practice. It improving forest cover, improving forest-based
would b e far better for government to support ecosystems etc. The emphasis is on building
these systems by strengthening and recognizing roads (which is a clear sign for felling and official
the practioners, not weakening them., which nexus with contractors) and legitimizing the
would happen in the proposed synthesis as the illegal. What should be developed is a
other forms of medicine are far better organized, compromise, which takes care of local concerns
with stronger lobbies and funds at their disposaL and also the regeneration of forests, not their
destruction.
The point about tribal remedies is changed to
herbal practitioners. This should not include Also it is unclear what is meant by "integrated
shamism, which is prevalent in various parts area development programs should be taken up
"
such as Arunachal Pradesh and has no basis in in and around forest areas". New settlers have
science. encroached heavily into a National Pilrk such as
Kaziranga and the Nambhor Reserv� Forest in
Displacement and Resettlement: Assam, destroying habitat for wi1dlite and the
natural balance. Why is the Draft Policy silent
The issue of displacement must be reviewed in on these issues? It must make clear that such
the context of the Sb:th Schedule form the NER. violations will not be tolerated and that
The Sixth Schedule gives extremely wide­ government will back resourceful officers who
ranging rights to tribal communities under the fight such depredations.
District Council system. The fourth paragraph of
the Draft Policy talks about when it becomes Shifting Cultivation:
" absolutely necessary" . . . U in the larger interest" Again a broad-brush sweep paints all tribals at
this is too sweeping a statement. VVho decides the same level of development a�d iagricultural

I
what is in t.1-te " larger interest": a few politicians production. There may be some groups, which
and bureaucrats. This must be specified without are not committed to the land, pu t as the paper
'.

itself says most tribals only have land as their


only possession and despite the complex pattern ALL REFERENCES TO PRIMITIVE TRIBAL
of land tenure, this is what they see, naturally, as GROUPS SHOULD BE DELETED AND
their birthright. BANNED

So, if there is anything to be done, it is along the Scheduled Tribes and Scheduled Areas:
A fourth point should be added: Traditional
lines of modified land tenure acts which will
forms of democratic governance among the
allow investment and a return on the lands for
tribes, especially after involving women and
the owners as well as moving farmers to settled
ensuring representation to other ethnic groups,
agriculture. Much research has already been
. should be involved and strengthened as the
conducted in this field.
third-tier o f governance. (see recommendations
of NCRWC, Consultation Paper on the North
Land Alienation:
East).

Anti-alienation laws already exist and must be


Administration of the Policy should clearly say
tightened to plug loopholes, which allow non­
that recognized and respected non-government
tribals to hold lands as non-owing " sleeping
groups should also be involved in policy
partners". But lands belonging to non-tribals,
formulation and review of imple mentation of

I
which are hereditary, must also be protected.
the objectives.
You cannot have laws, which favour groups,
which are already a majority (tribals in
Meghalaya and Mizoram for example) to the Participatory Approach:
detriment on non-tribals, who also have been Last paragraph must be changed to involve

there for decades. All land records and holdings recognized NGOs and VAs in all aspects of
policy formulation, prioritization of strategies,
must be computerized and be accessible through
fixing of goals and m o nitoring/ review
the Internet to the public. The Freedom of
mechanisms across state and sectors to ensure
Information Act guarantees this and is a basic
transparency and proper implementation of
right of every citizen.
policies and projects.

The traditional systems of governance such as


The segment on Assimilation to be dropped and
the dorbars, Dolois, Nokmas in Meghalaya and
replaced with a more visionary approach,
village gao buras in Arunachal and Nagaland
deleting such offensive language as "primitive
apart from similar systems among the Nagas
traits" and including wording that speaks of the
( different tribes have different systems) and
need to preserve and protect forest habitaeand
other groups should become the third tier of
ecosystems on which many of their traditions
governance in tribal areas. Women and non­
are rooted.
triba!s should also be accommodated, the latter
where their populations are substantiaL This is
Indeed, the "primitive traits" may be more
applicable here and in this section under the visible in the so-called " mainstream."
heading Scheduled Tribes and Scheduled Areas.

Intellectual Property Rights:


The Draft appears unaware o f the ongoing work
of the Law Research Institute under the auspices

I
of the Guwahati High Court, Guwahati, which is
working on codification of tribal laws.
Annexure 3: President A P J Abdul Kalam's Vision of Developed India

President A P J Abdul Kalam detailed his, while When I see the industrialists, entrepreneurs and
delivering the inaugural address at the 23rd connected members from different countries, I
India International Trade Fair in New DeIhl. was thinking what thoughts I can share with
you.
Friends,
I see there are industries from developed
I am delighted to participate in the inauguration countries and also from developing countries.
of 23rd edition of India International Trade Fair Therefore, I will be talking to you about the
(IITF) 2003. 'Dynamics of Development.'

The Fair provides a platform for a wide range of Law of development


b us i ne s s o p p o r t u ni ti e s by showcasing Last two years, I was studying the development
technological strength in different sectors o f the patterns and the dynamics of connectivity
economy. between nations, especially in trade and
business.
I greet the organisers, contributors and
As you all know the world has few developed
participants from various nations of thls mega
countries and many developing countries. What
event, which is becoming a reliable barometer of
is the dynamics between them and what
industrial progress.
connects them?

The theme of the Fair this year is 'Tourism' and


A developed country have to market its
'Promoting Exports by Small and Medium
products in a competitive way to different
Enterprises.'
countries to remain a developed country.

ALL REFERENCES TO PRIMITIVE TRIBAL GROUPS SHOULD BE DELETED AND BANNED

Scheduled Tribes and Scheduled Areas:


A fourth point should be added: Traditional forms of democratic governance among the tribes,
especially after involving women and ensuring representation to other ethnic groups, should be
involved and strengthened as the third-tier of governance. (see recommendations of NCRWC,

Consultation Paper on the North East).

Administration of the Policy should clearly say that recognized and respected non-g�vernrnent
groups should also be involved in policy formulation and review of implementation of the o�jectives.

The developing country, to get transformed into developed country, they too have to market their
products to other countries ina competitive way.
Competitiveness has three dimensions:
• Quality of the product;
• Cost-effectiveness; and
• Supply in time.

I
"

indeed this dynamics of competi tiveness in


marketing o f products b y developing and developed • Education and Heal thcare: To provide
countries is called the law of development. social security and eradication of
illiteracy and health for all;
Our technological strength • Info rmation and Communication
Technology: This i s one o f our core
• India is today a developing country and we competencies and wealth generator.
have a vision to transform India into a ICT can be used for tele-education, tele­
developed nation by 2020, using technology as
medicine and e-governance to promote
a tool.
education in remote areas, healthcare
• With the growing economy and strong
and also transparency in the
internal market, India is destined to make
administration; and Critical
competitive products using technological
. technologies and strategic industries
innovations.
witnessed the growth in nuclear
• Software and Pharma products have shown
technology, space technology and
the lead.
defence technology.
• I see the emergence of steel technology, space
technology and defence systems going to the
These five areas are closely inter-related. Since
international markets in addition to
the theme of the IITF this year is 'Tourism' and
conventional products.
'Small and medium scale industries,' which
• The initiatives taken in solar farming to
can be derived from the above areas, I would
generate energy, desalination plants to
like to dwell on the role, these sectors can
generate drinking water will soon be mission
reinforce the n a tional development i n
mode programmes offering a large business in
India and outside. particular the rural development.

• I would like to discuss the areas which require


attention for transforming India into a
Tourism
developed country.
• Transforming the nation into a developed • The vast civilization heritage of our country -­

country, five areas in combination have been ranging from the Himalayas to
identified based on India's core competence, Kanyakumari, Jammu & Kashmir, central
natural resources and talented manpower for India, North-Eastern s tates, Bihar, western
integrated action to double the growth rate of States, the large coastal line, Andaman,
GDP and realize the Vision of Developed Nicobar and Lakshdweep islands -- have a
India. lot to attract the tourists. _

• In spite of this vast potential, Indian tourism


appears to have a very small market shaJie of
These are: 0.38 per cent with total arrivals of 2.64 milhon
• Agriculture and food processing- with a in the overall global scenario. ;,
target of doubling the present production of • This can certainly be increased keeping in
food and agricultural products by 2020. mind India's unique positioning as a multi­
• Agro food processing industry would lead to dimensional country with many tourist
the prosperity of rural people, food security attractions.
and speed up the economic growth; • After my visit to almost all the regions of the
• Infrastructure with reliable and quality country, I have realised that the tourism
electric power including solar farming for all industry has a tremendous prospect for
parts of the country, providing urban wealth generation and should operate as a

I
amenities in rural areas and interlinking of
mission with higher targets. . \
rivers;

L
• To succeed in this mission tourism has to be • The number of small-scale units has increased
developed and promoted as a common from an estimated 0.87 million units in the
endeavour by all concerned government as year 1980-81 to over 3 million in the year 2000.
well as private sector agencies. • The small-scale industry sector in India creates
• A constructive partnership between the priva te largest employment opportunities for the
and public sectors has to be established and Indian pop ulace, next only to agriculture.
sustained for growth. • The 55I sector plays a major role in India's
• We need to establish innovative products and present export performance. About 45 per cent
world-class infrastructure. Thrust is required to 50 per cent of the Indian exports are
to be given for inland water navigation, hotels, contributed by the 55I sector.
communication, entertainment and tourist • Direct exports from the 551 sector account for
promotion. nearly 35 per cent of the total exports.
The private sector and the state and central • Besides direct exports, it is estimated that small­
government agencies have to work together to scale industrial units
create the right environment and act as proactive • contribute around 15 per cent to exports
facilitators and catalysts to promote sustainable indirectly. This takes place through merchant
tourism. exporters, trading houses and export houses.
• It would surprise many to know that non­
• Tourist management leaders should be trained traditional products account for more than 95
to create a people friendly approach among per cent of the 55I exports.
the tourists so that he/ she becomes a • The product groups where the 55I sector
promoter of business through word of mouth dominates in exports are sports goods,
and experience sharing. readymade garments, woolen garments and
• The places of tourist interest have to be knitwear, plastic products, processed food
maintained and kept neat and tidy to provide and leather products.
a harmonious atmosphere to the tourists. The • The strategy for enhancing the exports of
people of the region have to have moral goods and services from 55! sector has to be
strength to welcome the tourist with b as e d technology u p gradation, value
happiness. a d dition techniques, credit support and
• We have to start a 'Welcome Tourist' export marketing zones.
movement. The Indian-ness has to be • Big ind ustries should ensure timely payments
packaged from the time the tourist enters into for the products they receiye from small scale
industries. '
the country till he departs in all aspects of his
life during the stay. • Also IITF should find from the international
traders where Indian 55Is can far J better in
global competition in areas of;, quality,
Sm alI- and medium-scal e industries / quantity and schedule.
enterprises • This promotion will enable the 55I industry to
• The small-scale industries sector plays a vital grow much faster towards its target of Rs 5
role in the growth of the country. It contributes lakh crore (Rs 5,000 billion) of export
almost 40 per cent of the gross industrial value performance by the year 2020.
added in the Indian economy. • The small- and medi um-scale indus tries need
• It has been estimated that the turn over to an exclusive umbrella organization to
capital employed is approximately 4.62. The promote productivity and market their
small-scale sector has grown rapidly over the products, including exports. i

I
.

years.
Providing urban amenities in rural areas
India has large potential for tourism. I suggest that
• In India there are about six lakh villages and
two to three un-inhabited islands in Andaman,
around 70 per cent of our population resides
Nicobar and Lakshadweep are to be developed as
in them. Hence the villages have to play a
crucial role i n bringing about overall model tourist destinations with infrastructure, air
development in the country. and sea connectivities.
• The prosperity of these villages can come only
through providing infrastructure, industrial India with its large manpower needs many
support and e m p l o y m e n t challenging missions like this. The driving force
opportunities. Providing urban amenities in for economic development in rural areas is
rural areas envisages four types of providing urban ameni ties in rural areas.
connectivity: Physical, electronic, knowledge
The small-scale industrialist should become CEOs
and economic connectivities for sustained
development in village clusters. and consider each providing urban amenities in
rural areas complex as a tremendous business
• The government has decided to implement the o pp o r tu n i t y and provide four types of
'providing urban amenities in rural areas ' connectivity.
strategy in 5,000 rural clusters as a model
across the country in the next five years. They should establish the market, run schools,
• But the success of this programme is depends maintain hospitals and above all generate
on the collaborative efforts and active business enterprises g e n e ra t i n g large
participation of industries, particularly small­ employment and producing best products using
scale ind ustries.
the core competence of the village for supply to
• Thus providing urban amenities in rural areas
national and international market.
p r o v i d e s a s e a m l e s s connection a n d
movement of molecules (people), atoms
Presently most of the industries are located in
(material) and electron (knowledge).
urban areas, whereas 700 million people living in
• IITF should promote the concept of providing
rural areas require s table employment.
urban amenities in rural areas in the next
international trade fair to enable participation
Dispersion of medium- and small-scale indus try
of in this programme by the industrial and
business community. in the rural areas can only provide employment to '"
the rural population. "
Conclusion �
India International Trade Fair has to become a Such dispersion will also be useful to "the industry �
'...;;
window through which we can see the scene of in terms of reduction in cost of manufacture due to
....
".,...
development in different sectors including availability of raw material at lower overh<tads
j
industry, service and agriculture. and transportation cost.
i.l r
,

The i n d u stry fair ra ises the hope and Trade fair can take a lead role in creating the s.:s
aspirations for different industries to field their product market linkages for our village ind ustry.
prod ucts in a competitive environment.

Transforming India into a developed nation needs
With growing economy India is advancing in wealth generation. Tourism and small- and ( Ij
n u m b e r o f a r e a s w i th t e c h n o l o g i c a l
innovati ons. I suggest the Indian industry must
medium-scale industries should provide the ® '
required momentum for the mission,
develop quality products in time and cost
effective manner, for becoming globally
I wish the India International Trade Fair a igreat

I l]
competitive and must p e n e tr a t e into
success.
entrenched market.
Annexure 4: Biosphere In peril: Sahara Parivar's Sunderban dreams

... And what i s responsible is a corporate project would set new standards in hospitality and
that has all the ingredients of a modem day entertainment. Some of the facilities planned for
tourism blockbuster, and one that could well this dream destination are: modem aqua sports,
sound the death knell of this unique ecosystem. a mini golf course, a spa, a health centre, a club
How long will it remain a picture of house and a casino. About 75 per cent of the
tranquility? ac c o m m o d a t i o n would be on fl o a t i n g
It cannot get bigger, more ambitious or boathouses and 25 per cent as on-shore cottages,
expensive than this. At least that is how. it is stylish huts and fabulous tents. The exclusive,
being projected. beautiful virgin beaches of the region would be
preserved in their pristine glory. The complex
The location is the famous Sunderbans in the would also have a 30-seater, multi-utility high­
State of West Bengal. The largest delta and speed power craft for a floating clinic, a fire
mangrove forest in the world, the Sunderbans is fighting unit, an ultra modem security system
spread over 1 0,000 Sq.k m in India and and both small and big ships. All cottages and
Bangladesh. Of this roughly 4,000 Sq.km lies house boats would be equipped with broadband
within Indian boundaries and roughly 2,500 internet facilities, video on demand with
Sq.km is being conserved at the Sunderbans interactive dish antenna".
Tiger Reserve.
The Sunderbans Tiger Reserve is home to the "Virgin" islands and beaches of "pristine glory", a
largest contiguous pop ulation of the p r oj ec t with "global s t a n d i ng " , dream
endangered Royal Bengal Tiger. It also plays destination, floating boathouses, and a casino.
host to 50 of the 60 mangrove species found in Throw in a tiger breeding centre (it's been
India, hundreds of species of migratory birds, advertised) and even scuba diving facilities . . .
and a wide range of biological diversity. The sea and y o u have it all perfectly laid out a modem
and the creeks support significant populations tourism (it's also being pushed as eco-tourism)
of marine life including crustaceans, molluscs, blockbuster if there was one.
crabs, dolphins, and sea turtles that nest on some
of the beaches here. It is an extremely rich and Importantly, this time, even the "Leftist" State
productive eco-system that supports millions of Government is playing ball. It is the vital signal
families and l iv e l i h o o d s . Thanks to its that West Bengal is coming of age, that this is a
uniqueness and importance it has been declared State that welcomes large� projects and large
a "World Heritage Site" and was also made a money and that the right cli�ate for investment
biosphere reserve in 1989. and growth has been created. It is oaly one in a
slew of many mega projects of variouS kinds that
The "It" (in paragraph one) is the over Rs. 500 the State is welcoming with gusto. �,

(rores Sunderbans Tourism Project, which itself


is a part of the Sahara India Pariwar's huge In January 2004, th e West Bengal Government
Integrated Sahara Tourism Circuit In West and the Sahara group signed a Memorandum of
B e n g a l . T h e A i r S a h a r a Agreement for the project as well. It will be a
we bsi te(http://www.airsahara. net/airsahara/Sunde joint venture with the State making available
rban.jsp) presents as rosy a picture as is possible. about 750 acres of land on the islands of the
"The Sahara Group", the website says, "will Lower Long Sand Island, Sagar, Frasergunj, L­
develop five virgin islands in the 36,000 Sq.km of Plot, Jharkhali and Kaikhali for a paltry sum of
water area in the Sunderbans . . . as tourist only Rs. 20 crores. The respdnsibility of

I
destinations of global standing . . . these islands developing and running the initiative would be

-
T
that of Sahara India Pariwar's sub-agency the
Sahara India Tourism D e v e l o p me n t Unless these are available, there is no basis for
Corporation Ltd. such a project being cleared. Yet, the State
Go v e r nm e n t ' s expert c o m mittee on
If all seems in place then what is the problem?
Environment Impact Assessments (EIA) is said
to have cleared the project.
Simply, that a project with this investment and
ambition, could well sound the death knell of the
There are a number of laws that the project and
extremely fragile and unique Sunderbans. It will
government authorities are either ignorant of, or
kill the golden goose, the very ecosystem that
are deliberately violating. Both, of course, are
makes it such an attractive tourism proposition
inexcusable.
in the first place. The impunity with which
The project proposes a number of activities that
environmental and social concerns have been
neglected in the planning of this project could are strictly prohibited in CRZ I areas. These

certainly be called spectacular, if indeed they include dredging in creeks and water bodies and
were not so serious and "deadly". There i s the use of coastal salt marsh for developmental
violation on every single front, a s was found b y a activities during the construction phase.
team of i ndependent o b s er v e r s who Nothing is known of the plans for the disposal of
investigated the project area in March this year. waste and sewage; neither of those to deal with
This included among others, representatives of the inevitable oil, grease and other forms of
People United for Better Living In Calcutta pollution resulting from the operation of the
(PUBLIC), Kolkata; Bombay Environment boats, barges and floatels.
Action Group (BEAG), Mumbai, and the
Bangalore-based EQUATIONS that works on There is serious concern being expressed about
issues related to tourism. availability of fresh water, which is already a
problem in this marshy and saline region.
"It is important to remember," says Samir Mehta Presently available only at a depth of about 1,000
of BEAG, "that the entire Sunderbans, including feet, many a re worried that t he huge
all the project sites, has been notified as a Coastal requirements o f the project will only worsen the
Regulation Zone (CRZ) I region." It is an situation for the environment in general and the
acknowledgment of the fact that this is an local populace in particular. One such large
extremely sensitive zone and any activity has to requirement is for a mini golf course at L-Plot.
be initiated with care and concern. None of this
is, however, evident in any of the project There have been serious problems with the
documents of the promoters. "First and probably
public hearing process that is mandated f4r
most important," he points out, "is the violation
projects of this kind. Bonani Kakkar of PUBLI£
of the Environment (Protection) Act (EPA) 1986.
pointed this out after participation in the hearing
As per the Memorandum of Agreement, what
that was held on January 28, 2004, at Ramganga
we have is only a Rapid EIA and this," he
in the 24 Parganas district. While the project is
s tr e s s e s , "is nowhere s u ff i c i en t or
multi-locational, the public hearing was held in
comprehensive enough to deal with a project
only one place.
this size." Further, the West Bengal Coastal Zone
Management Authority (WBCZMA) has not yet
In a letter written to the West Bengal State
prepared the Area Specific Management Plan
Pollution Control Board, the agency responsible
and Integrated Coastal Zone Management Plan
for the public hearings, PUBLIC also pointed �ut
for the Sunderbans, as mandated by the Ministry
that the average time required for people to
of Environment and Forests.
travel from places like Jharkhali, L-Plot and We should also notforget that the Sunderbans
Kaikhali to the site of public hearing was about extends into Bangladesh as well and any
five hours one way, and that most people in attempt on the Indian side to upset the already
these locations had not even heard of the public stressed fragile ecosystem/' he warns, "could
hearing. "This is not surprising," the letter have serious international and politica l
c ontinues, " c o ns i d ering that two s m all implications. "
advertisements were placed in newspapers and
the print medium is hardly read in these areas". In another significant move, it has apparently
been decided that fishermen will not be allowed
(Sahara, on the other hand often releases three to
to fish in areas where Sahara has its project or the
four full pages in leading newspapers for 'their
creeks where their boats will ply. Presumably,
own advertisements).
they want their "virgin" beaches and islands. It's
also become clear that this project will not only
"There is also the crucial issue of forest lands
harm the environment but also adversely affect ,
and those being protected here in the interest of
the local population, by direct displacement and
wildlife, " points out Syed L iyakha t of
by the restrictions on their fishing activities.
EQUATIONS. Certain critical parts of land and
Another area of controversy that has now arisen
forests to be developed for the project are
is to do with a directive that no other tourism
already designated as reserve forests under the
operator will be allowed into the Sunderbans
Indian .Forest Act (IFA) 1927, and will need
without the permission of Sahara. Some
special permissionfor dereservation.
competition that would be!

These have not been sought. Further all the


There has been international concern too. The
project sites, with the exception of Gangasagar,
London based Environmental Investigation
are within a distance of 10 km from the
Agency (EIA) recently issued a briefing note
boundaries of the Lothian and the Saj nekhaIi
challenging Sahara's claims that this was an
wildlife sanctuaries or a wildlife corridor. The
ecotourism project (www.eia-intemational.org).
Indian Board for Wildlife that is chaired by the
They have pointed out that the project does not
Prime Minister had taken a decision in January
adhere to; rather clearly violates basic principles
2002 that all areas within 10 k m of th�
� l i ke those of ensuring cons erva tion,
boundaries of national parks and sanctuaries
environmental sustainability, involvement and
and the wildlife corridors would be declared as
benefits to the local communities and ensuring
eco-sensitive under the Environment
cultural respect; principles that guide and define
(Protection) Act 1986,
an eco-tourism project.
� "State governments had even been asked to list ;
I

All put together, it's not clear how the project can
, out such areas and furnish detailed proposals
� for their notification. How then, " questions go ahead at all. It has all the poterftial for an

(3'3 Liyakhat, "can the project be a llowed to go environmental disaster. "The earlier experience
of the Sahara group in creating the Amby Valley
ahead in this context? The problem with tourism
� dev elopm e n t, " h e conti n u es, "is th at Lake city near Lonavla in Maharashtra does not
Governments and tourism developers have inspire any confidence either," says Mehta.
always overlooked environmenta l concerns and
tried corrective measures only when the damage He should know, for i t was BEAG that had
has already been done. In the case of the highlighted the serious environmental problems
Sunderbans, however, there is too much a t stake and many of Sahara's legal wrong d oings here.
vis-it-vis the ecosystem and natural resources to There are even serious doubt� about its

I
repeat the mistake. economic viability if the marketing; rather the
lack of its success, in Amby Valley is anything to impacts on the economic, political and social
go by. fronts.

The Sunderbans, it appears, can certainly do India and US economic relations: A balance of
without this Sahara. payments?

(Pan kaj Sekhsaria is a member of the According to a BusinessHne article, the US now
environmental action group Kalpavriksh, TH. accounts for 28 % of India's trade. The total value
13.6.2004). . amounts to $18 billion/year. Two lakh Indians
are currently employed through BPO, most for
t\nnexu re 5: An India-US FTA: Free Trade
US companies. The US is also India's biggest
for America?
investor at 20% of the total FDI. On the other
HII "/,, I , d l .... /Idlllill I (JU \ I I( ) \ .... Hil lI',lI lort'
hand, India accounts for less than 1 % of the US
global trade. Apparently India's " untapped
There are rumours that the Congress-led
retail market" values at $180 billion and is
Government is set to decide upon a potential
predicted to double by 2010. The implication,
Free Trad e Agreement (¥fA) with the US
government. Strong lobbies such as NASSCOM according to this Business line article, is that
(National Association of Software Companies) India needs the US much more than the other
are pushing an FT A for services with the belief way around, espeCially when it comes to trade
that it will resolve their BPO (business process and investment.
ou tsourcing) problems. Those painting glowing
II
all gain, no loss" scenarios of an FTA where However, the reality of who benefits from whom
Indian companies can " render unhindered might be something else. In agriculture (a sector
services in the US" and where Indians " can take India is keen to promote in the export market),
up jobs without worrying about HIB visas"
the trade to the US in edible fruits and nuts
seem to be utterly ignorant of the complex
declined by 13 % and from coffee and tea by 4 % in
p ol i tics and legal l oopholes of tra d e
2003. On the other hand, US trade to India in
negotiations, much less of internal US politics
and the global competitiveness of Indian fertilizers increased by 206% in the same year.
services. A reality check is in order. India's cotton yam and fabric trade to the US
dropped by 12% while from the US increased by
While India has played cautiously in the v\lTO 40 % to India. India is the ne�t biggest
on services and investment, a potential India-US destination for US products after China with a
FTA now could undermine its work in the WTO growth of over 22.5% in 2002. In the same ye�r,
and handicap government (and industry) ability services exports (though economists admit that
to pursue long term development strategies.
statistics are hard to track) from the US to Indla
Insight into how the US has treated its "FTA
were double those from India to the US in with
partners" both weak and strong can give us an
US accruing $6.8 billion and India, $3.5 billion.
ex-ante look at what India can expect when the
Perhaps, the US " needs" India more than we
US comes to the "negotiating table." This article
presents a brief and preliminary look at think it does. The US has a $300 billion services
implications of an India-US FTA through a industry that is eager to get its hands on India's
wider lens. It addresses the India-US economic growing market. What will happen to the
relationship, the US FTAs with other countries Indian Services industry when the flood gates
and lessons India can draw from potential open? .

I
,
H owever, before j umping o n the FT A Mechanisms targeted are often those that protect
bandwagon, perhaps India needs to weigh how countries from US dumping. This is clearly
other US FTA partners have fared in this game. visible in the case of Mexico and Chile.

The US Negotiation Agenda in FT As: A look at In Mexico, there are at least 2 million corn
the weak and strong producers. Mexico was importing 2.5 million
tons of corn prior to NAFTA (1994). By 2001, it
The US has been steadfast and unrelenting in its was importing 6 million tons of corn that the US
commercia.l interests i n FT As, acquiring sold at 30% below the cost of production.
commitments from both strong and weak Mexican com prices paid to farmers fell by 70%
nations that far surpass any commitments the after large quantities of US yellow com was
US is able to get through the WTo. The dumped on the Mexican market. Even as
European Union is playing a similar game. The Mexican farmers (who had no o th e r
race is on between the two major powers on who employment alternatives) produced 1 8 miIlion
.
can capture developing country markets faster. tons of com in 2001, 3 million went unused. This

Covering all areas-- intellectual property; has created immense political problems for the
Mexican governrnent and contributed to severe
a gr i c u l t u r e ; s er v i c e s ; m a n uf a c t u r i n g ;
poverty amongst com and other farmers in
investment and even governrnent procurement­
Mexico who comprise 70% of the Mexican
-the US has negotiated well for its multinational
population.
companies. Here are some key areas where the
US has been able to gain:
Chile used to have a "price band" system that
would stabilize the prices of cheap imports such
Agriculture
as wheat and sugar in order to support its
200,000 farmers who specialize in products such
Hiding behind the European Union, the US is
as wheat, dairy, beats (which they primarily sell
actually one of the biggest contributors of low
to their domestic market). The US agribUSiness
world prices of major agriculture commodities
sold wheat to the world market at 44 % below the
(wheat, com, cotton, soybeans, rice etc.) . A US
cost of production in 2001. When Chile
� based NGO, the Institute for Agriculture and
negotiated its FTA with the US, it was forced to
'" Trade Policy (IATP) calculates US " dumping"
remove this price band.
� (the selling of products below the �ost of
Intellectual Property: Access to Medicines
production) of crops as 57% below the cost of
t::: production for cotton from 1990-2001, 30%
Another area of kev US interest is intellectual
� below the cost for corn and 40% below the cost
property (IP) right� and thus markets for its
� for wheat. The mass quantities �f t ese cro�s � pharmaceutical and biotech indus try . The US
distributed by powerful US agrlbusmesses m
� typically demands monopoly rightff of patents
� tum put local farmers in developing countries
out of business because they can no longer
up to 20 years. It also demands provisions that
limit governrnents from enacting laws that
compete with the cheap imports from the US.
promote cheap generics and issuing co�puls ?r:;
'" These imports also crowd out developing
� country exports.
licenses to combat epidemics. Such hcensmg
allows rapid and cheap distribution of drugs ��
\3i The US is an a 00
O"£1'essi ve ao
O'ricul
.
ture negotiator in
ti:nes of crisis. In country after country, the C5
has targeted IP laws and forced governments to
FTAs, demanding extremely low or zero tariffs
adopt WTO-pl u s commitme � ts th ereby
on commodities and regulatory changes in .

I
violating the ,,\lTO declaration tbat'recogruzes
agriculture schemes.
i
the right of governments to regulate in the
The company saw this as "expropriation"
interest of public health.
denying the company profits that it felt it was

In the Australia-US FTA Australia is fighting to owed. In another case, the US's United Parcel
preserve its Pharmaceutical Benefits Scheme Service (UPS) challenged Canada for denying it
(PBS), which the US congress might find similar treatment as was granted to the
objectionable. Immense pressure has been put Canadian Postal Service (essentially UPS
on Australia to change its scheme that allows claimed that Canada denied it market
consumers to benefit from affordable medicines.
opportunity for delivering packages). IX

Negotiations between the US and Bahrain are


These examples show that local and national
resulting in similar conditions placed on Bahrain
laws and regulations could be subject to court
that would limit its ability to bring and market
generics for Bahrainian consumers. It is generic claims if they are considered to violate IIA rules
medicines that induce competition for lower and obligations. These could also include
priced medicines. AIDS anti-retrovirals that obligations to refrain from using certain
once cost up to $15,000 n o w c o s t performance requirements (a policy tool
$140/year/ patient. The US is demanding essential to ensure that countries benefit from
similar provisions in FTAs with Australia, Chile,
FDI) regardless of the public good they may
Morocco, Singapore and in the Latin America­
provide. Essentially, Investor-State processes
wide Free Trade Agreement of the Americas
(FTAA). grant more powers to foreign companies than to
governments and their national interests. Such
Investor to State processes are an essential feature of recent US
An important feature in the US approach FT As, such as the Singapore-US.
towards international investment agreements
(HAs), is Investor-State dispute settlement.
Under these rules (enshrined in NAFTA in Services
many bilateral investment treaties and in the Similarly, US FTA negotiations on services are
most recent US FTAs), investors can sue host extremely ambitious and demand drastic and
country governments for an alleged breach of unconditional cuts on tariffs while major
HA rules and obligations. The claim can be
elements of services negotiations are still ill­
brought either to the ICSID (the International
defined and unclear in the W:rO GATS
Center for Settlement of Investment Disputes, at
the World Bank), UNCITRAL (United Nations
negotiations (such as classification, government �


Commission on International Trade Law or regulation and rules regarding governm�nt - ,
other arbitration bodies. Under these systems, procurement and subsidies). The US servi<;,e,s
the companies and governments fight it out industry usually knows exactly which national �
behind closed doors, the public unaware of the and sub-national laws of any given country to
proceedings. target for market accessthis is obvious from the
'.:,
few leaked US GATS requests in Geneva.

As a result of such an "Investor-State" suit under
NAFTA, Mexico was ordered to pay around
Meanwhile, understanding US national, state �\
and municipal laws and regulations on various ;{) 1
$ 1 6 . 7 million to an American company
(Methalclad Corp) because Mexico's local services sub-sectors requires expertise that the
Indian services industry and the gover�e". t is

I
administration prohibited the company to build
a toxic-waste dump in the area. currently ill-prepared to handle.

J.
Industry pundits such as CII's Senior Advisor, Rural farmers are being
".
/[ " "
" " "

U
"
" "
"

squeezed between
,
"

TK Bhaumik rightly suggests that most of India's falling output prices and rising input prices"
services are still unorganized and the time has with limited support from India's banking
not yet arrived to engage in a sweeping services structure for credits. As a result, numerous
agreement with the US. He notes: one or two farmer suicides and increased landlessness in
strong sectors (i.e. software) "does not make the the last six years have occurred. It has, in turn,
whole sector competitive." Importantly, he drastically reduced the purchasing power of
suggests that an FT A on services would have
60% of the Indian popUlation, even to purchase
implications for other sectors such as in9ustrial
foodgrains. This phenomenon led to the famous
goodsanother area of aggressive market
"60 million tonnes" of foodgrain stocks in 2002
interests for the US.
even as many in the countryside went hungry.
During the following year and half, India
Implications for India exported 17 million tones of foodgrains.
Economic and Social Consequences According to Utsa Patnaik's research, the latest
In Febru ary of this y e ar, US Trad e NSS survey of 1999-2000 cites 75% of the rural
Representative (USTR) Robert Zoellick stated population in India as suffering from poverty.
that India's average applied tariff in agriculture In Andhra Pradesh, one of the largest agriculture
is 38%, three times the level of the United States producing states, as much as 84 % of the rural
and the US manufacturing tariff at 3 % compared population was in poverty.
to India's 20% . And he wants further reductions
from India. Given that the WTO has taken away Before India engages in further tariff reductions
other types of border measures, tariffs are the in goods or services (as it continues under­
last remaining resort for India to collect revenues investing in the agrarian sector and/or is
and to protect its domestic agriculture and prevented from doing so through FTAs and
manufacturing industries. In an FTA, these multilateral agreements), it might want to
applied rates would drastically come down with reconsider the dire economic and social
the US having to make little compromise from its consequences for the majority of the Indian
own minimal tariffs. Meanwhile, agriculture population. Without purchasing power, there is
dumping and protection of its steel and other no Indian market to speak of, be it for domestic
manufacturing sectors would continue. or foreign companies.

.
India boasts of having protected its small Political Consequences
farmers and allowed for potential to export An FTA with US will have bro�er political
agriculture into the world market through its impacts. In May of this year, the US named India
;,
new deal at the WTO in July of this year. The once again on its "Special 301 Priority Watch
reality is that actual details are yet to be List" for " weak protection and enforcement of its
negotiated in the WTO and will do nothing to intellectual property rights laws." From 1992-
curb US agriculture dumping on Indian farmers 2001, the US removed India from its Generalized
since all of the US support schemes come under System of Preferences (GSP) scheme which
" no n - d i s to r t i n g " or " minimally trade allowed duty-free entry to Indian products
distorting" categories i n the WTO. Over 60% of valued up to $1.1 billion. It did so, on the
India's population depends directly or indirectly grounds of "inadequate intellectual property
,
on agriculture and currently the countryside is rights protection " . ,

I
in deep trouble.
.
, 1
watchful of its IP interests and is targeting India. On the other hand, a stronger hand of US business
The more dependent India is on the US market could also force India to increasingly cater towards
(as opposed to numerous markets in demand of
US interests at the threat of economic sanctions, It i s
India's cheap medicines), the more vulnerable
India will be to economic and political pressures a double-edged sword,
by the US. This is at a time when India's AIDS
epidemic is just coming to light (5.1 million Clearly, the US unashamedly used the trade
Indians recorded as infected as of 2003), India's weapon with Chile during the finalization of the
ability to produce and distribute cheap drugs is
Chile-US FTA when Chile refused to support the
essential.
US war in Iraq, The formal signing of the
The experience of Mrican governments in the agreement was held up for several months when
WTO shows that treme ndous trade! aid
Chile refused to give its support to the US at the UN,
dependency on the US or the EU leaves these
USTR's Zoellick was quoted as saying " the U.s.
governments virtually powerless to assert their
government expects 'cooperationor betteron
own national interests, Though India is not
there yet, it may want to consider whether it foreign policy and security issues' from its potential
wants more o r less vulnerability to the US partners in trade agreements" ,
government and its commercial interests. Isn't
allowing the US dominated World Bank into 'the Final Comment
Planning Commission's consultative Given these preliminary considerations, perhaps

committees for the X th Five Year Plan (2002- India should consider taking care of its business at
20007) enough? home first with its "$180 billion market." Rather

than eagerly sitting down with the US at the


Academics and World Bank officials suggest
"negotiating table," India might be wiser to
that an FTA with the US could " strengthen
India's hand in its broader strategic engagement continue building South-South relations as it is

with the U.s. by creating a stake for American doing with China, Brazil, South Africa and in its
business in India," own backyard,

I
Annexure 6: I ncoming Materials January September 2004 Books

Name Author/publisher
A Naga Village Remembered Easterine iralu
Ecology and land use pattern in Gudalur taluk nilghiris: a Arun Kumar Singh
geographical study
Tourism scenario and its potentiality in Nagaland Wezote Khutsoh
Nagaland (1993-2002)- A decade of stability, progress and Govt. of Nagaland, Kohima
development.
The karnataka Municipal Corporations Act, 1976 Karnataka law Journal
Publications
Karnataka Budget 2004-2005 Karnataka Law Jouna!
Publication
GATS 2000: New Directions in services trade liberalization Piette Sauve
A Citizens guide to the libalisation of finance Kavaljit Singh
Sheep and Lambs: An empirical study of women in local self FStephen ::-J. Raja Sekaran
:
Governance in Karnataka
Communitization: Experiences of the first year Govt. of Nagaland, dept. o f
Healt � & Family Welfare
Does community-based conservation make economic sense?: Sushil Saigal
Lessons from India
Coastal conservation through enterprises at Rekawa Lagoon, Sri U.K. Ekaratne
Lanka
Protected areas in India: A Profile Roshni Kutty and Ashish
Kothari
Proceedings of the workshop on sea turtle conservation Centre Marine Fisheries
Research Institute
Where Communities care: Cor:ununity baSed wildlife ilnd Ashish Kothari
ecosystem management in south asia
The state of the rights of the child in Nepal 2003 CIWN
Statistical Hand Book of Nagaland 2001 Government of Nagaland
Foreign Direct Investment and Development UNCTAD
World Social Forum- Challenging Empires Jai Sen, Anita Anand, Arturo
Escobar, Peter wat�rman
Journal of Indian Ocean Studies Society for Indian 6cean
Studies
Small is beautiful E.F. Schumacher
Dalits betrayed DR. B.D. Sharma

Status of Women in Keraia Kerala Women;s Commission

Who 5 Where Grace Fernandez


-�
Research for Development Sophie laws with Caroline
Harper & Rachel Marcus .

I
Reports
ICRIER: Distribution services: India and the GATS 2000 ArpHa Mukherjee
Negotiations
ICRIER: Economic Reforms: Policy and institutions some Arvind Virmani
lessons from Indian Reforms
KRIER: Impact on Government Policies and Investments Rashmi Banga
Agreements on FOI Inflows
Imndian export by countries and commodities: Modelling RIS
of Export sector for short-term forecase
ICRIER: Indian's trade in maritime transport services Arpita Mukherjee
under the gats framework
ICRIER: India's Trade potential in Audio-visial services Arpita Mukherjee
and the GATS
ICRIER: Trade liberalization and price cost margin in Bishwanath Goldar
Indian insustries
ICRIER: Trade in Land transport services: Railways ArpHa Mukherjee
ICRIER: Outsourcing and job loss: A protectionist fallacy Rajeev Ahuja
Poverty reduction and the world bank The World Bank
IMF conditionality and country ownership of Mohsin S.Khan
programmes
Bridging the differences: Analyses of five issues of the L. Alan Winters
WTO agenda and Pradeep. S.
, Mehta
A brief report on Higher and technical education C.Khalon g. Ao
Nagaland: Kohima
""
Report on Laws and legal procedures concerning the ECPAT, Plan
commercial sexual exploitation of children in India "

Situational analysis on trafficking of women and children ActionAid �


in Pakistan- Shattered dreams and Jiving Nightmares

CEDAW- Restoring rights to women UNIFEM, PLD
Traffic in persons for commercial sexual exploitation' : �
Legislation, role and effectiveness of the law enforcement
and law adjucation machinery Iv


RIS Discussion papers- Environment issues in free trade
agreements in Asia & the post-cancun challenges: issues
Sachin Chaturvedi
S'
and policy options
Priya Narula & �
The campaign against sexual ik.rassment at the
workplace- A training manual Cathering siuggett. N

( '"

I
A compilation of the Karnataka (India) Coastal Investors center. The project violates the Coastal Regulation Zone &
Meet. This is a tool towards building awareness and action Environmental Impact Assessment Notifications and all
for protecting the coastal ecosystem and ensuring existing environmental laws and regulations of india. It is
development that is just and equitable. also threatening displacement of many villages and
Suggested contribution: INR 50 or US$ 3. affecting livelihoods.

Doc-Up date: A half yearly compilation of latest media Suggested contribution: INR 100 or US$ 5.
reports on tourism and developmental issues. The Doc­ Tourism &: Displacement: PILIKULA Karnataka's
Update aims to provide an analytical perspective to the "Model" Tourism Project: Report
debate on tourism and development. Useful for Description o f problems and impacts on local
researchers, tourism institutes, and activists. communities due to unplarmed tourism development.
Subscription: INR 500 per issue or US$ 15. Suggested contribution: INR 50 or US$ 3.

Indigenous Peoples, Wildlife and Ecotourism - Towards Democratising Tourism: Report


emerging issues and trends: Dossier Understanding Development through
Issues of ecotourism compiled from various sources to Tourism: A critique and strategizing of
reveal some of the reservations about alternatives; interventions of International
ecotourism in a more detailed marmer. It Tourism NGOs in the World Social Forum
strives towards influencing international, 2004, M umbai, India.
national and state policies on ecotourism, Contribution: NIL; complimentary copy.
keeping democracy, protection of the
environment and indigenous peoples
rights as inalienable benchmarks. Weighing the GATS on a development scale, the case of
Suggested contribution: INR 250 or US$ Tourism in Goa: Research Study Report
10. Prov i d i n g insight on how r e c e nt
developments in the tourism industry in
Goa have affected small communities in
Nilgiris Biosphere Reserve Fading Glory: Dossier light of both current developments and
With focus on the fragile ecosystem, environment hazards potential developments as per India's
and tourism induced development of the commitments within the World Trade
Nilgiris Biosphere Reserve (India). It also Organizations G AT S (General
attempts to raise pressing concerns and A g reement on Trade i n Services)
priorities from the ground and seeks framework. Suggested contribution: INR
interventions to redeem the glory of 150 or US$ 5.
Nilgiris Biosphere Reserve. Suggested
contribu Hon: INR 50 or US$ 3. We Won Cancun: Dossier
Meant to serve as a reference for civil society activists on
some of the debates, actors, issues and events before,
Rescuing Child Labourers: Report during and affi!r the Cancun meeting
A documentation on raid and rescue of the WTO in September 2003.
operation undertaken to rescue 104 Suggested contribution: ; I�R 100 or
l
children from the residential, small­ US$ 5.
scale jewellery units of Bangalore. ,,'
Based on an analysis of the child labour Veegaland A m us emen t Park: An
Investigation R eport
rescue practices observed during the
process, a framework for conducting Amusement parks & water L.'1eme
parks are threatening depletion of
rescue operations in the child-sensitive
water r e s o u r c e s in s t r e s s e d
manner involving various
environmental and political situations_; Investigation
report of a case study in KeraIa. Suggested contribution:
stakeholders. Suggested contribution:
INR 250 or USS 10.
Resisting the Sell-out of the Sunderban Bi osp here INR50 0r US$3.
Reserve: I nve sti gation Report
Write 10 usforyour requirements. Please add INR 50fe r pos:::lge
The 'Integrated Sahara Sunderban Circuit' project is an
in India and US55 for overseas . We recom1Jlertf m:d�;pie-c'2py
ambitious project to develop the country's biggest delta &

I
mangrove forest in West Bengal into a world- class tourist
ordersforeconomy in postage.
Indian Tourism: Current Issues
1
A Statement of Concern
As EQUATIONS enters its 19'" year of experience and existence in critiquing tourism issues in India, it is
challenged by several concerns on the horizon today, a scenario that is likely to persist and extend in
both magnitude and implications as we approach the 21" century.

Towards a Critique: Some Statements

In the context of neo-colonisation

• Tourism has to be viewed in the context of a development model which has a political character;
• Tourism development has taken place along with increase elitism, authoritarianism, militarism
and various forms of state repression in different parts of the World: all of these are threats to the
cuI ture, economy and empowerment of communities;
• Tourism development along with globalization process threatens the sovereignty of a nation (in
the broadest definition of nation);
• Tourism eulogizes a certain consumptive and luxurious lifestyle which is unsustainable by any
means;
• Tourism promotes net outflow of capital to global market economy especially to the so called
development nations;
• Tourism is based on the objectifies view of the world where beaches, sanctuaries and so on are
seen as objects of pleasure which negates the sanctity of the objects as well as of possible
meaningful relationships between peoples and their environment.

Our vision for Tourism

An EQUATION seeks a world where wealth, resources and benefits are much more equitably
distributed between North and South. Our vision of tourism fits within that framework. While there is
no one transposable model which will work in all situations, we are working towards tourism which

• Bring economic benefits directly to all segments of the host community, particularly including
women and indigenous people;
• Is subject to local, democratic control, so that communities are making their own decisions about
how tourism should be permitted and regulated;
• Is integrated into other community activities, so that it is culturally appropriate and sensitivelto
the inequities between hosts and guests;
• Enriches both host (economically, developmentally and in terms of control) and guetfs
(culturally, re-creationally).

This is in contrast to many current tourism models, which are imposed from the North, requires the
extensive use of imports, is overly commercialized, and reinforced inequities rather than challenges
them.

EQUATIONS sees tourism not as a means to bring Southern communities into the Northern
mainstream, but rather as one ofthe way to work towards a more just world.
, \

I
.. �
a5: ...
.
. ..
. . . ...•.'.
.
.

The varying roles that EQUATIONS plays includes advocacy, center for information resources,
eclucator, watchdog, helping hand, publisher and producer of materials.

At the local level

• Focus on a particular place or issue


• Documents the tourism movement ilself
• Conduct survey with local groups
• Produce background materials on particular situations
• Facilitate scientific research on environmental and related issues.

At the national level

• EQUATIONS identifies itself as an Indian group, not a global one


• EQUATIONS historical role is as a pioneer who put tourism on the agenda of the national
development debate
• EQUA nON provides research and publications and is a resources center.

At the i nternational l evel

• Provide direct support for local action in South Asia


• Provid e resources and information for local action elsewhere develop training and seminars for
groups worldwide
• Participate integrally in the new global tourism s tructure when it emerges.

Information Collection and Dissemination

• Collaborate with local groups to collect information/inform them about parameters and
standards
• Produce brief fact sheets in Basis English so they can readily be translated, and some in local
languages
• Produce guidelines for assessing tourism from different perspectives

Lobbying

• Make the concerns and interest o f local communities visible


• Empower them to lobby for themselves and training
• Offer workshops on fundamental tourism issues
• Provide "how to" sessions on: participatory research, communications (including how to
publish a newsletter and present audiovisual programs), options for strategy (induding legal
options)
• Tailor each subject t o the particular groups situation and priorities.

I
1
• Learn about hotels entering India, including their investments, corporate behavior elsewhere,
I
and structures.
• Monitor tourism policy, and legislation when will affect tourism issues
• Network with others who can be /I eyes and ears"
• Follow global development that affect tourism
• Produce an annual audit showing how tourism in India is faring, from a critical perspective.

Sources Index
AAD Asian Age, Bangalore
AAB Asian Age, Bangalore
BL.B Business Line, Bangalore
BL.C Business Line, Chennai
BL.D Business Line, Delhi
BS.B Business Standard, Bangalore
BS.D Business standards, Delhi
DH.B Deccan Herald, Bangalore
ET.B Economic Times, Bangalore
ET.C Economic Times, Chennai
EHC Express Hotelier and Caterer
ETT Express Travel and Tourism
FE.B Financial Express, Bangalore
FE.D Financial Express, Delhi
GT.G Gomatak, Goa
GN.G Goan Times, Goa
HT. D Hindustan Times, Delhi
HE.G The Herald, Goa
IE.C Indian Express, Chennai
IE.D Indian Express, Delhi
NT.G Navhind Times, Goa �
TOLB Times of India, Bangalore '"
TOLD Times of India, Delhi -...,.
\;:..
TOLM Times of India, Mumbai
'"
"
TH.B The Hindu, Bangalore
m.B The Hindu, Bhuvaneshwar -...,.
\;:..

TH.C The Hindu, Chennai


TH.D The Hindu, Delhi . ' "
TH.o The Hindu, Orissa �
cy::
TP Travel Plus

Readers are welcome to write to us for any of the material listed in the Update, though we request
contribution towards photocopy and mailing expenses. The data at the end of each item indicates the <::l

@l
sources. Please refer the source index for abbreviations used.

EQUATIONS (Equitable Tourism Options) seek to situate the tourism critique within the overall
development debate. Our activities include doc umentation, publications, research and supporting
. I

I
individuals and group involved in concerted action on tourism issues.
�.
'5. Majumder "India-US BPO spatAnswer may lie in FTA" Businessline, April 14, 2004

"Data i n this paragraph from the F ICI website : w ww.fici.or.,g : " India-US Economic and Commercial Relations"

"'Ritchie, Mark et al. " US Agriculture Du mping on Worl d Markets" Cancun Paper Series No. 1, 2003,
www.tradeobservatory.org

'�Public Citizen. "NAFTA Truth and Conse uences: Com" March 31, 2004, www.citizen.org
q

' Langman , Jimmy. "Chllea n Far mers Protest Trade Pact" Miami Herald, June 1 1, 2003

� Australian Associated Press. "US Free Trade Deal Locked In." August 12, 2004

"'Data in this paragraph from Center for International Environmental Law (CIEl). Report of the TEPAC on The US­
Bahrain Free
Trade Agreement, July 12, 2004, www .del.org/ P ublications/TEPAC_Bahrain_14Ju104.pdf

"'''De Palma, Anthony "NAFTA's Powerful little Secret" New York Times, March 11, 2001

"Ibid

'Bhaumik, TK. "Take Stock of the Pros and Cons: An Indo-US FTA in Services is an Idea Whose Time Hasn't Come
Yet" http://www. finallcialexpress.comife full story.php'content id=66139

"Ibid

" 1.,;STR. Hobert Zoeilicks Press release: "US has a 9 billion 5 deficit with India and a 5500 billion deficit in the world"

"'Data in this paragraph from Vtsa Patnaik, "Principle Task on the Agrarian Front" India: An Economic Agenda for
2004. SAH'vlAT: July 2004

'''K:ollstadt, Alan. "India: Chronology of Recent Events" CRS Report for Congress, US State Department, July 28. 2e04

"FICI website: ""-'-'-"-"�""""� "India-US Economic and Commercial Relations"

" From India/South Asia Roundta ble: India-U.S. Economic Relations: A Free Trade Area or the Democracies ? SDoeakel's:
'
Aaditya Mattoo, The World Bank and Arvind Subramanian, Harvard University at the' Brook �ngs Institute
,

""Hansen -Kuhn, Karen, " FTAA Fails to Gain Support from Citizens and Governments Across the Regiop" Foreign
Polley In Focus. Pol i cy Brief: Volume 8. Number 3, November 2003, wwwfpijorg
,.