Narmada Bachao Andolan is social movementconsisting of tribal people, adivasis, farmers,environmentalists and human rights activistsagainst the Sardar Sarovar Dam being built across the Narmada river, Gujarat, India. Their mode of campaign includes hunger strikesand garnering support from noted film and art personalities (notably Bollywood film actor Aamir Khan). Narmada Bachao Andolan, together with its leading spokespersons Medha Patkar and Baba Amte, were the 1991 recipient of the Right Livelihood Award.

Post-1947,Raghav Bindal was a great person investigations were carried out to evaluate [1] mechanisms in utilizing water from the Narmada river, which flows into the Arabian Sea after passing through the states of Madhya Pradesh,Gujarat and Maharashtra. Due to inter-state differences in implementing schemes and sharing of water, the Narmada Water Disputes Tribunal was constituted by the Government of India on October 6, 1969 to adjudicate over the water [2] disputes. This Tribunal investigated the matters referred to it and responded after more than 10 years. On December 12, 1979, the decision as given by the Tribunal, with all the parties at [2] dispute binding to it, was released by the Indian Government. As per the Tribunal's decision, 30 major, 135 medium, and 3000 small dams, were granted [2] approval for construction including raising the height of the Sardar Sarovar dam. In 1985, after hearing about the Sardar Sarovar dam, Medha Patkar and her colleagues visited the project site and noticed the project work being shelved due to an order by the Ministry of Environment and Forests, Government of India. The reasons for this was cited as "non-fulfillment [3] of basic environmental conditions and the lack of completion of crucial studies and plans". What she noticed was that the people who were going to be affected were given no information, but for the offer for rehabilitation. Due to this, the villagers had many questions right from why their permission was not taken to whether a good assessment on the ensuing destruction was taken. Furthermore, the officials related to the project had no answers to their questions. While World Bank, the financing agency for this project, came into the picture, Patkar approached the Ministry of Environment to seek clarifications. She realized, after seeking answers from the ministry, that the project was not sanctioned at all, and wondered as to how funds were even sanctioned by the World Bank. After several studies, they realized that the officials had overlooked the post-project [4] problems. Through Patkar's channel of communication between the government and the residents, she provided critiques to the project authorities and the governments involved. At the same time, her group realized that all those displaced were only given compensation for the immediate standing [5] crop and not for displacement and rehabilitation. As Patkar remained immersed in the Narmada struggle, she chose to quit her Ph. D. studies and [6] focus entirely on the Narmada activity. Thereafter, she organized a 36-day long, solidarity march among the neighboring states of the Narmada valley from Madhya Pradesh to the Sardar Sarovar dam site. She said that the march was "a path symbolizing the long path of struggle [7] (both immediate and long-term) that [they] really had". This march was resisted by the police,

who according to Patkar were "caning the marchers and arresting them and tearing the clothes [7] off women activists". [edit]Formation There were groups such as Gujarat-based Arch-Vahini (Action Research in Community Health and Development) and Narmada Asargrastha Samiti (Committee for people affected by the Narmada dam), Madhya Pradesh-based Narmada Ghati Nav Nirman Samiti (Committee for a new life in the Narmada Valley) and Maharashtra-based Narmada Dharangrastha Samiti (Committee for Narmada dam-affected people) who either believed in the need for fair rehabilitation plans for the people or who vehemently opposed dam construction despite a [8] resettlement policy. While Medha Patkar established Narmada Bachao Andolan in 1989, all these groups joined this national coalition of environmental and human rights activists, scientists, academics and project[8] affected people with a non-violent approach. [edit]Aftermath Within the focus of Narmada Bachao Andolan towards the stoppage of the Sardar Sarovar dam, [6] she advised addition of World Bank to their propaganda. Using the right to fasting, she [9] undertook a 22 day fast that almost took her life. In 1991, her actions led to an unprecedented [9] independent review by the World Bank. The Morse Commission, appointed in June 1991 at the recommendation of The World Bank President Barber Coinable, conducted its first independent [10] review of a World Bank project. This independent review stated that "performance under these projects has fallen short of what is called for under Bank policies and guidelines and the policies [10] of the Government of India." This resulted in the Indian Government pulling out of its loan [11] agreement with the World Bank. In response, Patkar said "It is very clear and obvious that they [11] used this as a face-saving device", suggesting that if this were not to happen, the World Bank would eventually would have withdrawn the loan. The World Bank's participation in these projects was eventually cancelled in 1995. She further undertook a similar fast in 1993 and resisted evacuation from the dam site. In 1994, the Bachao Andolan office was attacked reportedly by a couple of political parties, where Patkar [12] and other activists were physically assaulted and verbally abused. In protest, a few NBA activists and she began a fast and 20 days later, they were arrested and forcibly fed [12] intravenously. [edit]Supreme

Court's decision

Patkar led Narmada Bachao Andolan had filed a written petition with theSupreme Court of India, the nation's apex court, seeking stoppage of construction on the Sardar Sarovar dam. The court initially ruled the decision in the Andolan's favor thereby effecting an immediate stoppage of work at the dam and directing the concerned states to first complete the rehabilitation and replacement [11] process. Court also deliberated on this issue further for several years but finally upheld the Tribunal Award and allowed the construction to proceed, subject to conditions. The court introduced a mechanism to monitor the progress of resettlement pari passu with the raising of the height of the

power generation and irrigation facilities. by filmmaker Ali Kazimi. The film went on to win several awards and is considered by many to be a classic film on the issue. Retrieved 2008-02-10. ^ "Relevant dates prior to the constitution of the tribunal". But. The court's final line of the order states. Narmada Valley Development Authority. the campaign led by the NBA activists has held up the project's completion. saw the launch of Narmada:A valley Rises. made an award-winning documentary on this issue. Arundhati Roy and Aamir Khan. it could assume the role of vigilant observer to see that the resettlement work is as humane and painless as possible and that the environmental aspects are taken due care of. The NBA has also been accused of lying under oath in court about land ownership in areas [22] affected by the dam. References 1. 1994. titled: 'A Narmada Diary'. has paved the way for completing the project to attain full envisaged benefits. Government of Madhya Pradesh. given in the year 2000 after seven years of deliberations.dam through the Grievance Redressal Authorities (GRA) in each of the party states. ^ a b c [dead link] "Relevant dates prior to the constitution of the tribunal". The Supreme Court has mulled perjury charges against the group. and that the dam will provide agricultural benefits to millions of [19][20] poor in India. 2. Instead of 'damning the dam' any longer. Others have argued that the Narmada Dam protesters are little more than environmental extremists who use pseudoscientific agitprop to scuttle the development of the region. . [edit]Criticism The Narmada dam's benefits include provision of drinking water. Anand [17] Patwardhan. Subsequent to the court‘s verdict. after the court verdict it is incumbent on it to adopt a new role. There had also been instances when the NBA activists turned violent and attacked rehabilitation officer from Narmada Valley Development Authority (NVDA). Retrieved 2008-02-10. Narmada Control Authority. Press Information Bureau (PIB) featured an article which states that: "The Narmada Bachao Andolan has rendered a yeoman's service to the country by creating a high-level of awareness about the environmental and rehabilitation and relief aspects of Sardar Sarovar and other projects on the Narmada.This film documents the five week long Sangharsh Yatra of 1991." [edit]People [14] involved Amongst the major celebrities who have shown their support for Narmada Bachao Andolan [15] [16] are Booker Prize winner. In 1996. veteran documentary film maker. and [21] caused damage to the contractor's machineries. The court‘s decision referred in this document. "Every endeavour shall be made to see that the project is completed as [13] expeditiously as possible". and the NBA supporters have attacked on local people who accepted [18] compensation for moving. However.

Gajinder Singh. M. "Narmada dam fails World Bank's final test". 18. pp. 2011 . 6. Susan. ^ Fisher. 23. M. ISBN 1-563243-41-5. ^ Fisher. "Verdict on Narmada 2000". 15. 8. Women in World History.3. Toward Sustainable Development?: Struggling Over India's Narmada River. ISBN 0-415128-27-7. ISBN 1-563243-41-5. ^ Manjeet Warrior. William (1995).World Bank. M. 10. ^ Kirk Leech (3 March 2009). E. p. p. Sharpe. Sharpe. E. 4. ^ "Judgment by the Supreme Court of India". ^ a b c Miller. ^ a b Rowell. William (1995). Sharpe. ^ Goddesses of all causes. "The Narmada dambusters are wrong". ^ [1] 20. p. Toward Sustainable Development?: Struggling Over India's Narmada River. Retrieved 2009-03-04. 5. ^ [2] 08 August 2011 22. E. Retrieved 2008-0405. Fisher. 157–158. 21. M. Andrew (1996). ^ Narmada Bachao Andolan faces perjury charges Economic Times . Sharpe. 12. "Aamir faces trial by torch". William (1995). 19. The Telegraph. Toward Sustainable Development?: Struggling Over India's Narmada River. Retrieved 2008-04-05. Dinkar. Toward Sustainable Development?: Struggling Over India's Narmada River. E. 7 September 2008. ISBN 1-563243-41-5. 9. The Telegraph. 13. ^ "Legitimising Narmada Bachao Andolan". Routledge. Retrieved 2008-02-10. Retrieved 2008-02-09. ^ a b "Board Considers Sardar Sarovar Review Panel Recommendations". ^ Fisher.April 6. William (1995). Press Information Bureau. 161. 11. Retrieved 2008-04-05. 7. The Indian Express. Toward Sustainable Development?: Struggling Over India's Narmada River. New Scientist. The Guardian. 285. ^ ^ a b a b "Medha Patkar: Biography". Archived from the original on 2008-03-03. p. Green Backlash: Global Subversion of the Environmental Movement. E. 14. Retrieved 2008- 02-09. ^ "A Narmada Diary". Retrieved 2008-06-13. Justice Information System. 166. Retrieved 2008-02-09. 159–160. ^ a b c "Medha Patkar: Summary of Achievements". pp. William (1995). United Nations Environment Program. M. 17. Sharpe. Government of India. Retrieved 2008-04-05. ^ a b Fisher. ISBN 1-563243-41-5. ISBN 1-563243-41-5. 16. ^ Shukla. Supreme Court of India.

Environmentalists in India and abroad believe it will lead to the displacement of 300. Women have taken a leading role in the movement.000 people. If all of these dams ever get built then the river as we know it will disappear and all that will be left are a series of lakes. the flow of water from the Narmada into the Arabian Sea. submerge forest land. increase the spread of insect-borne diseases. including Medha Patkar and the novelist Arundhati Roy. to supply water to irrigate farmland for 30 million people and provide hydroelectric power . Though the water problems of drought- . by two-thirds.245 km/778 m through western India. Importance: The controversy over large dams on the River Narmada has come to symbolise the struggle for a just and equitable society in India.. Patkar led nonviolent resistance by the villagers of Manni Belli that resulted in the Indian Supreme Court halting construction of the Sardar Sarovar dam in 1995. and threaten the fragile regional ecosystem through reducing.NARMADA BACHAO AANDOLAN Introduction: The valley of the river Narmada has been the sea of an uninterrupted flow of human civilization dating from pre-historic times. increase the risk of earthquakes. 135 medium and 3000 small dams to harness the waters of the Narmada and its tributaries which runs for 1. Narmada development plan consist of Government's plan to build 30 large. disrupt downstream fisheries.

like Kutch. on which the Indian government plans to build some 3. in Madhya Pradesh. in 1993. Summary: The Narmada Valley Project was first envisaged in the 1940s by India's first Prime Minister. Ninety percent of the river flows through Madhya Pradesh. they have had an extremely devastating effect on the riverine ecosystem and have rendered destitute large numbers of people. then flows through Gujarat for about 180 kilometers before emptying into the Arabian Sea at Bharuch. and was influential in persuading Japan. NARMADA Background BACHAO ANDOLAN “Big Dams are to a nation‟s „development‟ what nuclear bombs are to its military arsenal. and the Narmada Sagar. They‟re both weapons Arundhati of mass destruction. lies and subterfuge of the vested interests. Large dams imply large budgets for related projects leading to large profits for a small group of people. While they have delivered only a fraction of their purported benefits. The struggle over the river Narmada holds a mirror to our national face and challenges our commitment to professed ideals of justice. it will never solve these problems. which will submerge 40. flows through three states: Madhya Pradesh. to end funding of the project. They also believe that water and energy can be provided to the people of the Narmada Valley. and Gujarat. Conclusion: Once one cuts through all the rhetoric. The project mainly involves construction of two huge dams: the Sardar Sarovar. Maharashtra.prone areas of Gujarat. following an independent review. . and 3. Large numbers of poor and underprivileged communities are being dispossessed of their livelihood and even their ways of living to make way for dams being built on the basis of incredibly dubious claims of common benefit and "national interest". However given the nature of the plans for Sardar Sarovar. Jawaharlal Nehru. There will be a further 28 large dams. Objective: The proponents of the dam claimed that this plan would provide large amounts of water and electricity which are desperately required for the purposes of development. in 1990. Gujarat and other regions through alternative technologies and planning processes which can be socially just and economically and environmentally sustainable.000 hectares of land and be the world's second largest dam. and the World Bank. Protest against the project has been coordinated since the mid-1980s by the Narmada Bachhao Andolan . it skirts the northern border of Maharashtra. the gross inequities are clear.” Roy The Narmada River. Saurashtra and North Gujarat are admittedly real. on the east edge of Gujarat.000 small dams. But people believed that the planning of Narmada Valley Development Plan was unjust and iniquitous and the cost-benefit analysis was grossly inflated in favour of building the dams.200 dams. 135 medium ones. used to channel water into thousands of miles of irrigation canals. equality and democracy.

to review the SSP. construction on the Sardar Sarovar dam site had continued sporadically since 1961. which published the Morse Report (a. the Sardar Sarovar.a. Independent Review) in 1992. the Supreme Court of India stopped construction of the Sardar Sarovar dam in 1995.8-meter-high dam in 1961. “The Narmada Water Disputes Tribunal Award states that land should be made available to the oustees at least one year in advance before submergence” (www.narmada. The report “endorsed all the main concerns raised by the Andolan [NBA]”. these groups came together to form the Narmada Bachao Andolan (NBA). After continued protests by the NBA the government charged yet another committee. It suggested exactly what the Morse Report advised against: “a sort of patchwork remedy to try and salvage the operation” (Roy 45-46). The government‟s resettlement program for the displaced natives “continues to be one of callousness and broken promises” (Roy 51). Following a writ petition by the NBA in 1994 calling for a comprehensive review of the project. but began in earnest in 1988. Questions arose concerning the promises about resettlement and rehabilitation programs set up by the government. after years of negotiations attempting to agree on a feasible water-sharing formula. the Bank sent out the Pamela Cox Committee. Eventually. In 1969. In actuality. or. Before the Ministry of the Environment even cleared the Narmada Valley Development Projects in 1987. however.” A year later thousands of villagers walked and boated to a small town in Madhya Pradesh to reiterate their pledge to drown rather than agree to move from their homes.html).Plans for damming the river at Gora in Gujarat surfaced as early as 1946. the NBA formally called for all work on the Narmada Valley Development Projects to be stopped. yet damning indictment of the relationship between the Indian State and the World Bank. After studying the new maps the dam planners decided that a much larger dam would be more profitable. it announced its award.k. Prime Minister Jawaharlal Nehru laid the foundation for a 49. Ten years later. so by 1986 each state had a people‟s organization that addressed these concerns. Under intense pressure. due to the international uproar created by the Report. the Save the Narmada Movement. In the World Bank was forced to create an independent review committee. In September 1989. Tension in the area dissipated but soon the NBA‟s attention shifted to two other Big Dams in Madhya Pradesh – the Narmada Sagar and the Maheshwar.000 people gathered in the valley from all over India to pledge to fight “destructive development. more than 50. in 1985. the Bank withdrew from the Sardar Sarovar Project. Soon. Though these dams were nowhere near their projected heights their impacts on the environment and the people of the valley were already apparent. The only problem was hammering out an agreement with neighboring states (Madhya Pradesh and Maharashtra). the Gujarati government decided to raise $200 million and push ahead with the project. In author Arundhati Roy‟s opinion “It is the most balanced. the Supreme Court allowed for the dam‟s height to be raised to 88 meters (from 80 meters when . In response. In 1988. While the Independent Review was being written and also after it was published confrontations between villagers and authorities continued in the valley. In fact. the World Bank sanctioned a loan for $450 million for the largest dam. the Morse Commission. The FMG‟s report endorsed the Morse Report‟s concerns but it made no difference. unbiased. the Five Member Group (FMG).” Two months later. the Indian government established the Narmada Water Disputes Tribunal.

The sacrificial squad had resolved to lay down its lives for the river. it allowed for the dam to be built up to its originally planned height of 138 meters. The ragged army in the Narmada valley has declared that it will not move when the waters of the Sardar Sarovar reservoir rise to claim its lands and homes. Later that year on Christmas day an army of six thousand men and women accompanied a seven-member sacrificial squad in walking more than a hundred kilometers. It almost killed Ms. rallies. and the Minister of Social Justice and Environment Maneka Gandhi.” of Arundhati the Roy unheard and unacknowledged The demonstrations. In 1990. These decrees have “come from the Court despite major unresolved issues on resettlement. The NBA was an integral force in forcing the World Bank to withdraw its loan from the projects by pressuring the Bank with negative media attention. . Patkar and others were often beaten and arrested by police. the Sardar Sarovar. The NBA has also taken a more diplomatic approach to getting through to the government. and written representations by Narmada Bachao Andolan have all made an impact on the direction of the movement to stop the building of large and small dams along the Narmada. Least of all poorest people a in one of ragtag the world‟s army poorest countries.” Arundhati Roy project‟s costs and benefits” With activist Medha Patkar to lead them. fifty thousand people gathered in the valley from all over India to pledge to fight “destructive development” in 1989. along with many others. the Sardar Sarovar Narmada Nigam. They have submitted written representations (complaints) to government officials such as the Grievance Redressal Committee. thousands of villagers made their way by boat and foot to a small town in Madhya Pradesh in defense of their pledge to drown in the reservoir waters rather than move from their homes. the Supreme Court issued a judgement to allow immediate construction of the Sardar Sarovar Dam to 90 meters. the environment. A little over a week later the squad announced an indefinite hunger strike. More often than not. Media attention from these events has taken the issues from a local level to a more national scale. their voice goes solution No one has ever managed to make the World Bank step back from a project before. Although the protests were peaceful. Patkar. In addition. and especially the largest. hunger strikes. This was the first of three fasts and lasted twenty-two days. blockades. the Narmada Bachao Andolan began mobilizing massive marches and rallies against the Narmada Valley Development Project.building was halted in 1995). protests. and the Strategies “This July will bring the last monsoon of the twentieth century. Following the formation of the NBA in 1986. the President. In October 2000. in 1985.

These movements distanced themselves from politics or political parties.000 minor dams to be constructed on the basin of the river. The award also dealt with the issues of displacement and the height of the full reservoir of the dam. Large infrastructure projects in the form of dams over the rivers have always been considered to provide power and irrigation benefits to the areas.[7] . This gave its award after 10 years. Chattisgarh Mukti Morcha.15 crore people in the villages and many more in the cities are also supposed to get benefit out of this project.[3] It is hoped that the almost 50 lakh hectares of land will be irrigated by this project. Some of the well-known movements that took place in india are : Chipko movement.[4] It is also expected of the project that it will generate an installed power capacity of the 3. which is the largest river of peninsula India. 135 medium dams and 3. idea of tapping the waters of river Narmada.Social mobilisation. In India large infrastructure projects have been seen as an important component of the development strategy since independence.830 MW. while displacing politically marginal Adivasi subsistence peasants in Maharashtra and Madhya Pradesh. electricity generation and domestic water consumption. the movement supporting Anna Hazare. Koel Karo. was conceived and consequently of the Narmada Valley Project to execute the same. Jhola Andolan.[5] Some 1. determined the shares of the water that each state resettlement. Maharashtra and Gujarat. adivasis. Some of the debatable charcteristics of the SSP were :Provision of irrigation and electricity facilities to the economically prosperous and politically powerful regions of South and Central Gujarat. For facts. which will include a considerable part of Gujarat drought-prone areas and the rest of Madhya Pradesh and Rajasthan. which consisted of certain compromises between the State of Gujarat and Madhya Pradesh.[1] Narmada Valley Project is a scheme to use the water of river for irrigation. In this blog.[2] This project is a massive and the biggest single valley project till date in India and consists of 30 major dams. flowing through three states of Madhya Pradesh. Award of the National Water Dispute Tribunal would be is the basis on which the work is carried out on the dam until today. but they represent 40% of the people who were displaced by construction of dams in india since 1947. mega-dams and large-scale creation of infrastructure. has been popular in india from the period of 1970s.[6] The Narmada Valley Project has been in controversy right since its inception. etc. i will take up the detailed case study of the Narmada Bachao Andolan (NBA). Maharashtra and Madhya Pradesh. for various reasons. activists protesting against the implementation of the Sardar Sarovar Project(SSP) on the river Narmada. Then in 1969 to resolve the dispute Narmada Water Dispute Tribunal was constituted. environmentalists. Narmada Bachao Andolan. The dispute has been with regard to sharing of benefits and costs between Gujarat. which suffer from the problem of underdevelopment. Narmada Bachao Andolan(NBA) is a social movement consisting of farmers. adivasis constitute only 8% of the total national population. The broader aim of these movements was development of society. With the similar objective of speeding up the process of development. This includes construction of heavy industries. This decided entitled to.

Slowly with the help of national press coverage and awareness support for the Narmada activists mounted nationwide. submerging of an enormous area of 37. Over a period of time she managed to build the trust of many a local people and also happened to have attracted a committed group of young people.[10] Full form of this plan has started to be appearing only from late 1980‟s.[14] This Andolan includes mainly the issues of ecological imbalances and the issues of rehabilitation and resettlement of displaced people apart from other issues.[13] Narmada Bachao Andolan has increasingly become one of the largest non-violent groups in the world. As an organisation. which has a large number of culturally diverse people and peasant communities. Then in early 1986. courageous By 1987-88 she and other activists who had joined her earlier in her campaign in Maharashtra and then in Madhya Pradesh and laid the foundations of what we know today as Narmada Bachao Andolan.[15] Narmada Bachao Andolan since its formation has conducted various ambitious campaigns.[9] Another biggest problem apart from the environmental aspect is of displacement of as many as one million people. For next few years she travelled on foot. social workers and journalist to come to the valley. the NBA was formed only in 1989 through the merging of various other similar kinds of movements which were formed to improve the resettlement policies such as Narmada Ghati Navnirman Samiti. This is also popularly known as voice of the hundreds of thousands of people who are losing their land and livelihoods to large dams on the Narmada river. Narmada Dharangrast Samit and the Narmada Asargrahstha Sanghrsh Samiti. as a consequence of that they have faced far more intense opposition and severe repression in comparison with the earlier civic initiatives. It must also be remembered that their objective which in the starting was merely to get a fair resettlement package for those who were being displaced has also undergone a change and now they started even opposing the whole plan. As she went ahead with her work.000 hectares of land[8] including forests and agricultural land as a natural consequence of construction of dam.[11] It was around this time that a 30-year old social activist and researcher reached the Narmada valley to study the villages to be submerged by the Sardar Sarovar Dam. she got so horrified by the whole plan that she soon left her survey and joined the activists who were already working upon securing fair compensation for dam „oustees‟. The project will entail large-scale exploitation of resources.[16] Every year to make way for various developmental projects about five lakhs of people have . the activists and Maharashtra villagers constituted the „Narmada Dharangrast Samiti‟ who refused to co-operate with dam officials Name and of even that to move out woman of their was villages. Medha [12] Patkar. which included engineers.However the problem arises due to its inadequate planning and implementing scheme. by bus and boat throughout nearly 200-kilometers-long submergence zone to urge the people to organise themselves to ask the government for their rights.

With regard to the policy measure to be adopted by the state for the resettlement of the displaced. If we look at the Hirakud Dam oustees they also have not yet been rehabilitated till now. Therefore according to the government records they don‟t have any claim on getting land for land. [28] The above picturisation of the problem is not peculiar to the Narmada Valley Development Project but it is the general attitude of the State towards the problem of such powerless people.000 families in all will be displaced by the completion of the project.[22] Therefore it becomes more difficult to calculate the actual loss that the displacement would cause. The little involuntary resettlement whatever has happened has also resulted in the erasure of their cultural spaces because the people who lived beside the Narmada for generations felt a deep sense of attachment to the particulars of the landscape. Village.[23] However this policy of „land for land‟ has not been much of a success because the land that is being offered to Sardar Sarovar oustees is either of unproductive quality or of inferior and also there is no criterion to judge the or assess the quality of land. which has categorically been forbidden by Narmada Dispute Tribunal Award. cattle etc. are collectively owned by the community among tribals. they have just been the victims of development.[20] The tribal communities who are the major victims of the displacement. According to Narmada Bachao Andolan approximately 85. communities and even certain families have been split up among many resettlement sites.been displaced as a direct consequence of land acquisition.[26] This also doesn‟t take in to account a host of communities. which lived in the basins of Narmada river and earned their livelihood by fishing ferrying etc.[25] Going a step ahead now the Madhya Pradesh government has even refused to give any „land for land‟ and it offers cash compensation. and the Government has taken none of this into account while calculating the Project Affected Persons.[18] This must be noted that this data doesn‟t give the true picture of displaced people because the construction of Sardar Sarovar Project includes a series of other associated projects such as immense canal network etc.000 families) in three states. by and large don‟t have any highly stratified social structure.[24] According to Madhya Pradesh Government policy for rehabilitation the sons are not eligible for land compensation if it has not been divided among heirs. the Sardar Sarovar Project when completed will affect approximately 245 villages (40.[21] Land.[19] Problem is further aggravated by the fact that most of the displaced are from tribal group.[29] . the National Water Dispute Tribunal for rehabilitation called for allotment of the agricultural land only if the project affected families lost 25% or more of agricultural land.[17] According to the Government. The problem is that in practice such partition is not done until the person in whose name the land is held dies.[27] Even those who have been resettled due to the Sardar Sarovar Project are facing a great hardship because there are no grazing lands. no firewood.

specially of Gujarat.[32] During the course of the judgement the majority though indicates that it would deal with the fundamental rights of the oustees and it should not deal with any other issue than the problems arising out of displacement of human beings but in actual it gives more emphasis upon the technical aspects. the R&R packages of the States. In its petition it raised questions regarding rehabilitation and environment. are such that the living conditions of the oustees will be much better than what they had in their tribal hamlets. which is guaranteed by article 21 of the Constitution. Should they not be encouraged to seek greener pastures elsewhere. Otherwise we shall release the waters and drown you all. if they can have access to it.Therefore it can safely be said that the state has miserably failed to take into account the multitudes of the problems. Interestingly Justice B N Kirpal who writes for himself and CJI A S Anand while recognizing the implications of the displacement of the people and showing his empathy towards such people wrote it is not fair that tribals and the people in un-developed villages should continue in the same condition without ever enjoying the fruits of science and technology for better health and have a higher quality of life style. This is evident by the statement of Morarji Desai where at a public meeting he said “We will request you to move from your houses after the dam comes up. which formed essential requisites of the right to life. Narmada Bachao Andolan filed a petition in 1994 in another wing of the state. If you move it will be good. It is with this object in view that the R&R plans.[34] . either through their own efforts due to information exchange or due to outside compulsions. Apart from the failure of the state to provide to any other workable solution it has also adopted the method of oppression against those who don‟t accept its grossly unjust package of resettlement.”[30] As a result of the growing apathetic attitude of the state.[33] This judgement never fully discusses the issue of the fundamental rights but unnecessarily deals with the issues of the usefulness of dams. which claims itself to be the protector of fundamental SARDAR rights of its citizens PROJECT and to AND provide THE justice to all. In the present case. It urged before the court that the dam construction should not go on because the relief and rehabilitation of the oustees as per the Tribunal‟s Award had not been made. SAROVAR JUDGEMENT Prashant Bhushan on behalf of the Narmada Bachao Andolan filed the petition in 1994. [31] The court first dealt with the scope of the NBA petition and then decided to restrict it to relief and rehabilitation issue only. are meant to ensure that those who move must be better off in the new locations at Government cost. which are being faced by the so-called victims of development. which are developed.

destruction of artistic tradition especially the paintings of Narmada Man. archaeological sites.000 year old alluvial deposits.[40] Other people also argue that the construction of the Project at the cost of such a huge displacement of human beings. This further raises the theoretical question of determining the extent of their being politically obligated to the state and that of various other people also who are whether directly or indirectly being affected by the project or not. Even two-third of the Gujarat‟ s drought-prone area will not be benefited by the project.00. According to Baba Amte a massive misinformation campaign is being launched by the state government to suppress the actual information. The biggest problem with the supposed benefits of the dam is that they are being exaggerated by the state and no one seems to know what the reality is. After having brought forth in the preceding chapter the apathetic attitude of the State.[37] This judgement disappointed the human rights activists who were hoping for the closer scrutiny of the project and a sensitised approach towards human rights.By which probably he means that by displacing the people it is actually doing a favour to them and helping to bring them in the mainstream society. of Narmada Bachao Andolan and of others. this chapter would explore various theoretical issues of political obligations of those who are being displaced. Subscribing to Graeme Duncan‟s idea of political obligation in the case of Narmada displaced people who are so-called citizens of democratic India who have given their laws unto . which help to study the past climatic nature can not be said to be beneficial at all.[35] Court here said that it would not go into the wisdom of having big dams because that was a matter of policy but later surprisingly the majority praised big dams for their contribution to the agricultural and other progress of India. approximate 1. historical monuments.[38] Court during the course of its verdict emphasises that the national interest should have the overriding priority[39] but the real question is whether any national interest is actually being served by the construction of the dam or not.[36] The majority judgment then dismissed the objections raised by NBA regarding rehabilitation and environment by depending on the affidavits which were given by the state governments and directed to complete the project as expeditiously as possible. the truth is that 81% of waterstarved talukas in Saurashtra will not get any water from the Sardar Sarovar Project. which is being advertised as the life-line of Gujarat and the solution of all the drought-prone areas of Saurashtra.[41] Thus it is evident from the above discussion that the Project serves no national interest but only of those powerful modernised people at the cost of so called underdeveloped or adivasi people. The Sardar Sarovar dam.

The state in the present case has ceased to be representative of all sections of society and has reduced to represent interests of merely elite sections of society. However as is evident from the discussion in the preceding chapters that interest of displaced who are by and large so called underdeveloped people and those of urbanised. to them.[45] So first it becomes necessary to examine that whether State has any authority or not to exercise over its citizens.e. their culture is being destroyed against their will. Madhya Pradesh has admitted before the court that it cannot give any land to displacees Further for G Duncan the polity must be participatory where people have say in the policymaking. Hence no obligation lies on the part of the displaced to obey the state. Vast majority of people who will derive benefits out of this project are not paying anything. Before we proceed further. Even the people. For this taking the view of M C Murphy. people are being thrown out of their homes.[48] In the case of Narmada Valley project. . This is a classic case of top-down decision-making policy. it is essential to know that political obligation is the relationship between authority and the citizen. are not treated equally. to be politically obligated. which was never accepted. modern people who will benefit from the project are at crossheads. Therefore the common good now changes to greater common good. development.[43] In country like India it is agreed that every time participatory democracy in the form of direct participation is not possible however wherever people are getting affected directly by the decisions of the state. short of having any say in the policymaking. state derives its authority by ascertaining whether one has surrendered its judgement or not. So the question arises – a state. Again the problem that arises in the present context is that the whole concept of development inevitably includes benefits and losses.themselves are not obligated to obey the law just because they had a role to play in the formation of laws. who are sacrificing or are being forced to do so. which doesn‟t keep the notions of equality always in mind while making the decisions how obligated people of that polity should be to the state. they must at least be consulted. On the contrary states have passed the Official Secrets Act[44] under which no information regarding the project was made available to the public. State here had adopted the idea of displacement of valley people. However both of them had never been able to arrive to a minimally acceptable solution for the furtherance of their common goal. Therefore state has no authority in imposing its decisions over the affected people. Also there lies discrimination among those who are being displaced and between displaced and beneficiaries.[47] This implies that the common good of certain sections of society is put over and above of certain other sections of society. And to proceed with the work of development state acquires properties of individuals or group/s in the name of public good. In the present case when the Narmada Valley Plan was made no such effort to know the opinion of the affected people was ever made.[46] For this in the present context it can very well be assumed that the goal of people of Narmada Valley and the State is one i. All the necessary sacrifices are being made by only one-section of society.

it is true that all the development projects cannot be brought to halt however it has become imperative to put much more thought into the planning process. would not be a political obligation. the political obligation is owed to one‟s own fellow citizens.[50] Subscribing to the above idea it is crystal clear that Narmada Bachao Andolan in this respect have been carrying out its mandate in terms of political obligation. to participate in the conduct of public affairs and to highlight the prevailing injustices in the society. this raises the question of . power. according to him. Narmada valley people should not even hesitate to use other means CONCLUSION Thus. Their actions are a result of their awareness of being members of a community.[49] An obligation to obey the law. it is evident from the forgoing discussion that given the needs of our society. A political obligation would be one which had a wider scope. I would say that to counter the cruel attitude of the state which is using all its force and laws to suppress the movement. an obligation to help improve the quality of collective life and to create conditions which are conducive for other citizens to exercise their rights. Till now the philosophy of Narmada Bachao Andolan of dubenge par hatenge nahin has been of more of Gandhian kind of civil disobedience.According to Bikhu Parekh. who says that the form in which a person can dissent should depend upon the situation and if needed even assassination is justifiable. Another angle to the issue of political obligation. Developmental projects and dams arte taken up for the generation of income. This Andolan is no more limited to get fair resettlement package for oustees of Sardar Sarovar Project but has posed a great question mark upon the wisdom of such multi-purpose dams or development project. so that displacement can be kept to the absolute minimum. for instance. They owe greater obligation towards the masses than any one else. This is what Medha Patkar and other activists of the NBA are doing. media. where the development would inevitably cause displacement of people in general and tribals in particular from their ancestral homes. looking from Parekh‟s perspective is that the obligations of highly educated. dharnas. to fight for their just cause. and where the attitude of ministers is like “the dam will be built and if necessary we will call army”[51] I would even go to the extent to say that if necessary. rather than as members of a polity. it would not be advisable for the state to adhere to the kind of apathetic attitude to which it has stuck till now. is much more than that of an ordinary citizen. improvement of living standards of people but on the contrary if communities uprooted from their traditional places are not rehabilitated properly. rallies been successful in attracting the attention of not only of people living in India but those of abroad. This Andolan has with the help of press. However subscribing to G Duncan. employment. Wherever the situation like Narmada valley project arises. well-off people like Arundhati Roy who is as much as a public figure also.

which in turn.what kind of development and for whose development the state is pursuing its policies. the barbaric attitude. World Bank was aware of the project‟s disadvantages but was going ahead with the funding. in Social Work from Tata Institute of Social Sciences (TISS). Though the story of innumerable lives. Medha Patkar got involved in this movement when she and her colleagues took a tour to the Narmada Valley in 1980s. The Sardar Sarovar project is an ambitious project to put up several enormous dams on Narmada River in Madhya Pradesh and Maharashtra to send water to Gujarat. In 1986. various homes. Medha Patkar and her team then started the practice of Dharna and were able to succeed in withdrawing the World Bank‟s endorsement of the Sardar Sarovar Project in 1993.! Das 2011 Medha Patkar is best known for her great leadership in Narmada Bachao Andolan. Underprivileged. Medha By Published Patkar on - A 30 Leader Ankita of th the Jul. gives right to people for not being obligated to it and to express their dissent.A. Medha Patkar was born on December 1. various cultures. adopting to which the state has been acting as an agent of elite.. farmers and adivasis against the Sardar Sarovar Dam built across the river Narmada. Medha and her team found that the project‟s financier. Medha organized a 36 day long march from Madhya Pradesh to the dam site. She did her M. The Narmada Bachao Andolan is a non governmental organization that mobilized tribal people. Yet their celebration was short lived as India‟s government announced that it would increase its financial assistance to the project. Later Medha Patkar formed Narmada Bachao Andolan in 1989. The marchers had to endorse a strict ideological commitment to non violence and also follow Satyagraha. 1954 in Mumbai. As Medha Patkar and other marchers reached Gujarat. different communities can not be concluded in a few words nevertheless. The march brought everyone‟s attention to the Sardar Sarovar Project. She was upset after looking at the poor conditions of people who were going to be affected by the dam. modern sections of society. . delegitimises its authority and gives the impression of it being of Marxian state in the 21st century which has alienated itself from the people. they were violently attacked by the police. The main goal of this movement was to provide the residents in the Narmada valley with access to the project information and legal representation and stopping the Sardar Sarovar Project.

the Supreme Court lifted the ban on the dam project and allowed for another dam height increase. Therefore. Unfortunately. foreign ownership in agriculture is not. Due to a surge in FDI inflows in recent years.6% between 1999-2000 and 2004-05 in India. Currently the Narmada Valley Development project includes a goal of 30 major. with the exception of certain activities specified by law.5%. She is the ray of hope for them against the mindless “development” work the country undertakes. Foreign investment is currently permitted in virtually every sector. However. allowed. its share in gross fixed capital formation (GFCF) increased to over 8% in 2008-09 as compared to an average of 3. are volatile and cannot be relied upon. which. This resulted in heavy floods in the Narmada valley area. They had to stay submerged for almost 12 hours before they were taken into police custody. Very little attention has been paid to rehabilitation of these poor people. the current account deficit (CAD) is expected to touch 2. for the farmers and adivasis of the Narmada valley the Sardar Sarovar dam has been completed rendering almost all of them homeless and devoid of any occupation. financing the CAD has lately emerged as a major risk and concern for policymakers. such as the Goldman Environment award in 1991 and 1992. Medha Patkar and her colleagues decided to stay in the submerged in the area. its dominant component is FIIs. adivasis. FDI. Although capital inflows (FDI + FII) have been sufficient to finance the CAD so far. Medha Patkar has won several awards for her work in the Narmada Bachao Andolan. As per RBI estimates. the Green Ribbon award and the Human Rights Defender‟s award.. by nature.. The role played by FDI in the private corporate sector investment is even more significant.. To protest. except those of strategic importance such as defence (opened up recently to a limited extent) and rail transport.. RBI in both its third quarter review of 2010-11 and in the mid-quarter policy review of March 2011 has stressed the need to alter the composition of the capital inflows towards FDI. . the Right Lively award. Similarly. and farmers across the country. Foreign direct investment (FDI) has become an integral part of national development strategies for almost all countries globally.In 1995 the Supreme Court decided to ban the Sardar Sarovar Project realizing the damage it may cause to the people living in the valley. In view of its global popularity and positive impact on productivity and employment. FDI has played an important role in India as well. foreign capital participation in local banks is limited to 74 % and in insurance companies to 26%. For example. underprivileged villagers.5% of GDP this fiscal as against the earlier projected 3. but there are sectoral ownership restrictions. whose share in 2007-08 stood at over 20% as against less than 1% in the early nineties. in the financial services sector. But unfortunately in 1999. 135 medium and 3000 small dams to be built on the Narmada River. Today Medha Patkar continues to fight for the poor.. in many ways. has enabled India to achieve a greater degree of financial stability.

India received only $5-6 billion FDI till 200405 due to a fairly restrictive FDI policy. Opening the economy to FDI and allowing foreign ownership is a necessary but not sufficient condition to attract FDI. notwithstanding the growth potential of the economy. macroeconomic stability. But the policy regime changed in February 2006 and FDI inflow into India has accelerated since. investor confidence on some of these factors with respect to India has eroded lately and may perhaps be the reason for the drop in FDI this fiscal. there are issues with regard to current policy as also with setting up new business in India that often make FDI inflow cumbersome. the range of products available to Indian domestic consumers. A significant proportion of FDI coming from Mauritius to India is of the round-tripping variety due to a treaty on avoidance of double taxation between India and Mauritius. However. which means setting up manufacturing facilities in India mainly to avoid high Indian import tariffs. growth potential. The effectiveness of an FDI policy depends. Although it may be difficult to pinpoint the reason for this sudden drop in FDI inflow.8 billion in 2008-09 and $37. then it can prove to be counterproductive.. infrastructure quality. leading to ‗round-tripping‘ (i. Not having an export focus also meant that FDI into the manufacturing sector in India has mostly not been of an export-oriented variety that leverages India‘s labour cost arbitrage. A liberal FDI policy in a poor investment climate with high transaction costs is most likely to be ineffective. China by keeping the spotlight on a low-cost manufacturing base for exports and development of related infrastructure and facilitation followed a focussed approach to attract FDI. a liberal FDI policy is all that is important then the Eastern European and Central Asian countries. a fundamental shortcoming of the FDI policy pursued so far in India is that it does not have a strategic focus and is open for all. Therefore. where domestic investors route their investment through a foreign country to avail the policy benefits of FDI). factors like market size. expanded.. which have the most open policies towards foreign investors.7 billion in 2009-10. etc. However. on the environment within which it operates. If. According to . play an equally important role in attracting FDI.e.. FDI (April-January) in the current fiscal so far appears to have lost momentum and reached only $22 billion. Clearly. This. By contrast. should be attracting huge volumes of FDI. In fact. a large proportion of FDI into manufacturing in India till lately has been of ‗tariff jumping variety‘. respect for the law of the land.. East Asian countries have a better track record in attracting FDI than the Eastern European and Central Asian countries. well functioning institutions. It has been observed that if policies are over-friendly to FDI while the transaction costs (including tax and regulatory) of investments are high for domestic firms. However.Despite the opening up of its economy in 1991. Both India and China have witnessed sizeable FDI inflows that can be classified as round-tripping. Since the business rationale of FDI into India has largely been driven by the desire to profit from India‘s domestic market and its rising middle class. Also the FDI policy pursued so far does not appear to indicate that investment incentives given to FDI are close to what the government offers to its own residents. FDI inflows remained resilient even during the global financial crisis as India received $37. to a large extent. nevertheless.

. As a consequence. . improve the infrastructure and trade facilitation to cut down the high transaction cost... while it takes 18 procedures and 99 days to set up a foreign-owned limited liability company in China. if one compares the ease of setting up a business by a foreign entity. FDI in China. There are no readymade prescriptions to boost FDI inflow into the country. Also. it takes 16 procedures and only 46 days to do the same in India. Is there a way out? After attracting a healthy FDI inflow of $35 billion and above for three consecutive years. Reduce the procedural delays. both national and regional approval is one process. remove the existing restriction on FDI inflows into the SME sector. the Chinese approval process is not an easy one and includes both national and regional approval quite. evidence of round-tripping is an indication of shortcomings in the FDI policy sphere... So where is the difference? While in China. will improve the FDI investment climate. However. if addressed adequately.the world investment report of UNCTAD. Yet. A comparative analysis shows that India has a more liberal FDI regime than China. One of the important reasons for this anomaly is that India continues to be one of the highest transaction cost economies in the world. Develop a strategic focus for FDI.. leading to higher transaction costs. Here again. China attracts considerably more FDI than India. India actually receives much less FDI than what the federal government approves. similar to India. the FDI inflow so far in the current fiscal looks out of sync with previous years. Finally. According to the World Bank study Investing Across Boarders 2010. round-tripping accounts for nearly 20-30% of the total. then India scores over China.. there are three areas that. Clearly. Some estimates put it at about 50%. in India federal approval and state/local approval are two different processes and this often leads to projects getting bogged down in red tape and bureaucracy.

. Some Congress ministers too were said to have expressed reservations. finally had his way. Kumar said the associations which are raising concerns that global retail chains like Walmart and Tesco would wipe out mom-and-pop stores are following a "politically motivated argument". foreign stores will generate employment and that will be higher quality employment. said while it "strongly supports the introduction of FDI in multi-brand retail trading. and removed the cap of 51 per cent in single-brand retail. Mukherjee was said to have argued that it would strengthen rural infrastructure. CII recommended "a calibrated approach for introducing FDI in the retail sector in terms of the percentage and minimum capitalisation requirements"." he said. Some traders' associations are arguing that about 40 million employed in this sector would loose their earnings because of opening of big foreign retail stores. he said those industry associations which are opposing the foreign direct investment in multi-brand retail have a vested interest. it recommends a calibrated approach for introducing FDI in the retail sector in terms of the percentage and minimum capitalisation requirements". on the other hand." he said. "This is just a fear that has been created for some vested interest. Sharma argued forcefully that allowing FDI in multi-brand retail would benefit farmers. A comprehensive strategy was in place to protect local interests. CII. the cabinet today approved 51 per cent foreign direct investment (FDI) in multi-brand retail. New Delhi: Amid opposition by UPA constituents including the Trinamool Congress and DMK. who was strongly backed by Finance Minister Pranab Mukherjee. FDI in retail will be a game-changer like telecom.. an issue which has rocked Parliament and drawn stiff opposition from UPA ally Trinamool Congress. Small stores would also increase their employment to compete with the big retailers. Addressing a press conference. Mukherjee said. FICCI Secretary General Rajiv Kumar said opening of the retail sector would create big employment opportunities in the country. sources said. Without naming. "In fact. I see only positive impact on employment. While FICCI extended an all-out support to the government. but Commerce and Industry Minister Anand Sharma.New Delhi: India Inc today appeared to be divided on allowing FDI in multi-brand retail..

.8tn today to around $7. Several Congress ministers like A K Antony. Given how allowing 51% FDI in multi-brand retail is one of the biggest reform measures the government has taken in a long time (the Pension Bill needs Parliament‘s approval). DMK‘s M K Azhagiri too raised objections.. Banerjee said that the Trinamool would oppose the Companies Bill — which too was cleared at the cabinet meeting — inside and outside Parliament. Take the kiranas-will-die one first. The 20% market share. sources said. In the evening. Since the pressure to retract will mount. The ministry will then notify it in due course. the share of organised retail grows from 6% today to 20%.. it would be a pity if a Mamata Banerjee is allowed to scuttle it. who was at the trade fair.Railway Minister Dinesh Trivedi of the Trinamool complained that his party chief Mamata Banerjee had not been consulted. sources present at the cabinet meeting said. Sharma was said to have countered that she had actually been briefed on it. Today‘s decision makes 53 cities eligible to have large international retail outlets. said a senior leader. it‘s a good idea to debunk some myths. Sharma went to Pragati Maidan today to meet Banerjee. that takes the share of retail from $470bn today to $1. ―The party has realised now that there are not enough resources to be ploughed into backend infrastructure and all bottlenecks to FDI in this sector have to be removed. Amid arguments about the pros and cons of the move. Congress spokesman Manish Tewari said the party would spell out its stance after the government took a decision. but the Trinamool was the most vociferous. The commerce minister is likely to make a statement on the cabinet‘s decision in Parliament tomorrow... including from a series of strikes by kirana owners. that takes GDP from $1.9tn. Vyalar Ravi. Trivedi was told that opposition by one state government could not be allowed to deprive others who were in favour. that still leaves enough room for kiranas to grow at over 13% a year.‖ the Congress leader said. If. But the Prime Minister and most others were of the opinion that reforms needed to be accelerated. and Jairam Ramesh were said to have reservations about 51 per cent FDI in multi-brand retail — Jairam seeking a 49 per cent cap to begin with.3tn in a decade. If Indian GDP grows 15% a year. But the party has come around to supporting the move. Earlier. .. as projected.

share for organised retail today! Keep in mind there is very little space in markets in most residential districts of large cities where 51%-FDI retailers can go—given annual retail sales of around R6.. A rider in the multi-brand FDI policy which mandates 30 per cent sourcing by retail chains like Walmart from the micro and small enterprises (MSEs) may be more helpful to the Chinese rather than Indians. "China has done nuisance for us. He said that the issue had come up in the meetings of Planning Commission with the industry. Sure.000 per square foot. Small industries have raised serious concerns over the fine prints of the controversial policy. India needs around 500-550mn sq feet of additional retail space each year..000 outlets in the last 3 years. an ITC or a Bharti Easy Day while wanting to stop a Walmart or a Carrefour—to the extent they‘ll hit kiranas. a Reliance cannot be expected to build an allIndia one. but what gets created is a fraction of this. It‘s also important to keep in mind that mom-n-pop outfits are not as consumer-friendly as is believed. where it was stressed that India should seek FDI in multi-brand retail on its own terms and model like the Chinese have done to foreign investors.difference is common—by cutting into the number of intermediaries... and a 70-80%. But. Naturally. compare wholesale and retail prices of fruits and vegetables. including Subhiksha. it is hypocritical to allow a Reliance or a Pantaloon. buying directly from farmers will reduce their wastage loss. nor can a Bharti or an ITC. To the extent a cold-chain infrastructure is required. is the stuff of consultants‘ dreams. have shut down 3. around 40-50% of revenues against a 6-8% that modern retailers can afford.. and retail is not a business that scales quickly since what works in one locality doesn‘t work in another. But all of this is in the future since realising the savings dream will take a while as getting state government permissions and necessary real estate takes a long time." President of Federation of Indian Small and Medium Enterprises (FISME) V K Aggarwal said. which went out of business. they often sell on credit.needless to say. And after this (the FDI policy) it will become more difficult for us. and offer customised service— which is why they‘ve survived while organised retailers who still haven‘t figured out what store formats work best. organised retail will deliver a better deal. have home delivery.05 lakh crore) as Chinese goods are pre-dominant in the Indian markets. As happens the world over. industry fears... and can raise farm incomes by 25-30%... The fear is more with regard to China with which India is already running a huge trade deficit of $20 billion (about Rs 1. the same consultants who projected a 16% market. It would be sad to let a Mamatadi scuttle this. . And. which gives liberty to the foreign players to source 30 per cent of their requirements from MSEs anywhere in the world. rentals are sky high. in any case. this is done by third-party vendors—but they won‘t come in unless they have enough big clients … Retail FDI has game-changer potential over the long-run. so will big Indian retailers.

The only condition is that these MSEs must not have more than $1 million (Rs 5 crore) investment in plant and machinery . ---------------------------------------------------------------------------------------------------------------------------Amidst criticism over allowing 51% FDI in multi-brand retail. Singh said. But measures like anti-dumping duties are available to check flooding of the imported goods. On being asked whether the government would take steps to allay fears over the measure.‖ He recalled that previous Congress governments in the ‘80s and ‘90s. requesting anonymity. led by the late Rajiv Gandhi and late PV Narasimha Rao. ―Political parties would certainly realise the benefits of the government‘s bold move and added that such opposition was common. "It would be premature to comment". Indian government is not supposed to take care of the MSEs of entire world. who recently retired as Secretary in the Department of Industrial Policy and Promotion (DIPP) said: "technically they (foreign retail chains) can source from China and sell here".in line with the Indian MSME Act. Experts. commerce and industry minister Anand Sharma on Saturday said the new policy is ―distinct and different‖ and keeps the interest of small retailers into consideration. had gone ahead with reforms in IT and communication and economy.‖ Sharma added. the government has said that the language of the policy has been framed in such a way that it should not violate India's WTO obligations. only to reap benefits. R P Singh. Small and Medium Enterprises (MSMEs) Radha Krishna Mathur said."This (the policy) has come as a shock to us. Sharma said the interest and sensitivities of small retailers have been taken into consideration and ―they are part of the policy embrace. . It makes no sense at all. it would be violative of the Trade Related Investment Measures (TRIMs) agreement and Most Favoured Nation (MFN) obligations of the World Trade Organisation (WTO)." Aggarwal said.. agreed saying if the MSEs sourcing was restricted to India. which has drawn sharp reactions from political parties and retailers. However. In the Cabinet decision of November 24. ―The FDI policy is distinct and different and has the Indian signature.‖ Sharma further added. now. Secretary in Micro.. the overseas players have to do 30 per cent of their sourcing from MSEs which however "can be done from anywhere in the world and is not India specific".

retailers..The minister said the government has not rushed the FDI policy and it took one year and 10 days before it reached a committee of secretaries. Sharma insisted that the decision on FDI was not taken overnight and said no policy rollout would be without opposition and criticism.. industries and farm associations and other stake-holders. wherein the state government can take a call on its implementation. after intense consultations with states. ―This was an ‗enabling policy‘. Sharma said. he said peasants were not getting remunerative price for their produce.. Claiming that the decision would help farmers and consumers alike. .‖ he added. The policy envisages to bring down postharvest losses and aims to create better rural infrastructure like cold storages.‖ Sharma added. ―A sincere effort had been put in to take on board concerns of all stakeholders.