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May 20, 2007

The Acid Wash Effect

SHUCHI SRIVASTAVA, OUTLOOK INDIA, MAY 28, 2007

A government/industry nexus is giving leeway to Dow in the Union Carbide wrangle. Why?

This is the story of an American MNC, accused of bribing Indian officials and influencing policymakers.
It's about The Dow Chemical Company (Dow), the second-largest chemicals maker in the world and an inheritor of our worst industrial accident, the Bhopal gas tragedy.

Apart from Dow chairman Andrew Liveris, the dramatis personae include Planning Commission deputy chairman Montek Singh Ahluwalia, Indian ambassador to the US Ronen Sen, and Tata Sons chairman Ratan Tata, one of the country's most powerful and credible businessmen.

In the recent past, they have all interacted several times with each other. Montek heads the Indo-US Economic Dialogue Committee, which aims to help India become a knowledge economy and usher in a second green revolution in agriculture through technological inputs. An important ingredient of the umbrella negotiations between the two nations is the Indo-US CEO Forum, which is chaired by Tata and includes Liveris, one of the 10 American CEOs handpicked and appointed to the forum by US President George Bush. Ronen Sen is obviously diplomatically involved in all these parleys.

Therefore, it was natural for Dow—and Liveris—to use the interactions to distance itself from the cases relating to the poisonous gas leak from the Union Carbide factory in 1984. After Dow took over Union Carbide's global operations in 2001, the former insisted that it should not be dragged into criminal, environmental and financial liabilities for the incident that led to the death of nearly 20,000 people. In official backgrounders, Dow has consistently maintained that it had "never owned nor operated the (Bhopal) plant" and, therefore, it "has no responsibility for Bhopal".

But in recent times, Dow has been asked by the Indian government to cough up money to clean up the toxic wastes—above and below ground—still present at the factory site. Satinath Sarangi, an International Campaign for Justice leader, explains, "The issue of who will pay for cleaning up of the site remains." In May 2005, while responding to a public interest litigation on the issue, the Union ministry of chemicals and fertilisers (MOCF) urged the Madhya Pradesh High Court to order Dow to deposit an initial amount of Rs 100 crore for the purpose. Adds Yashveer Singh, officer-in-charge, Bhopal cell, MOCF, "This is against a final figure that may be around Rs 400-500 crore."

It's now clear why Dow is not keen to get entangled in the Bhopal tragedy case. On November 8, 2006, Liveris shot off a letter to Ronen Sen saying "it was a pleasure to see you again at the US-India CEO Forum in New York on 25 October. I especially appreciated your support in discussing resolution of the Bhopal legacy issue as a tangible, deliverable outcome for the CEO Forum." The letter added that since the Indian government representatives admitted at the meeting that "Dow is not responsible for Bhopal and will not be pursued by the GoI, it will be important to follow through to ensure that concrete, sustained actions are taken that are consistent with these statements".

The Dow chairman suggested a two-pronged action plan for India. One, the central and state governments should use the opportunity that existed to join hands with local CEOs and foundations to 'remediate' (or clean up) the Bhopal site. Two, the Indian leaders needed "to work closely with all ministries of the central government to ensure that their stated position is reflected in any and all of GoI's statements, legal files, and dealings with the Indian court system". In short, Liveris wanted the MOCF to withdraw its court application asking for the Rs 100 crore deposit.

Despite several telephone calls, Outlook could not speak to Sen in Washington.)

Interestingly, while responding to an application filed by Bhopal's International Campaign for Justice under RTIA, Naseem Ahmad, APIO, Planning Commission, admitted that the Dow chairman had met Montek twice. In a letter (March 14, '07), Ahmad wrote that "Liveris had met Ahluwalia at the Indo-US CEO Forum in New York (25 October) and subsequently he had also paid Ahluwalia a courtesy call at the 2007 World Economic Forum meeting in Davos." But there are no indications whether the Bhopal gas tragedy cases came up during these discussions.

Less than three weeks after Liveris' letter to Sen, Ratan Tata took a seemingly pro-Dow stance. In a letter to Montek, the Tata Group chairman referred to the contents of the Liveris-Sen exchange. He added that the withdrawal of the MOCF court application "is obviously a key aspect and I wanted your assessment as to whether this is possible". Taking Liveris' arguments forward, Tata wrote that his offer "to lead and find funding for the remediation of the site...still stands. Perhaps it could break the deadlock?"

In fact, the Tata group has been serious about its cleaning-up initiatives. On July 10, '06, Tata wrote to finance minister P. Chidambaram that "remediation of the gas tragedy site be considered because of the likelihood of contamination of the soil and groundwater in the area, which would endanger the health and lives of the people of Bhopal". Talking about a local remediation fund, Tata added that "should the government and the courts endorse such a line of action, an effort could be made to bring (together) like-minded corporate houses to contribute to such a fund. These suggestions are totally independent of the issues being addressed in the courts."

This brings us to several crucial questions. Is the Tata group trying to bail out Dow? Are legal liabilities the only reason for Dow to lobby so aggressively? Why is the Tata group so intent in pursuing site remediation? Finally, is Dow's case being pushed by powerful Indian officials like Montek in any form whatsoever?

The latter dismisses the last question out of hand. "Ratan (Tata) wrote to me about Dow in my capacity as the chair of the Indo-US Economic Dialogue Committee and I have forwarded his request to the MOCF. I can only play the role of a facilitator here as neither am I an expert nor am I authorised to make any such recommendations," Montek told Outlook in a telephonic conversation.

His take on the Tata-Dow connection is simple. "I cannot with all certainty say what is the exact motivation that could have prompted Ratan to take this course. But his role as the chair of the Indo-US CEO Forum could have something to do with it as Liveris is also one of the CEOs representing American business interests in the forum," explains Montek. A statement issued by the Tata group said that its suggestions to Montek or Chidambaram were no different from "any public-spirited initiative to clean a polluted river or a site damaged by some abnormal phenomenon".

"There is a risk that health issues may emerge, which impact not only the unfortunate victims of the Bhopal tragedy but also those citizens of Bhopal who were not affected by the tragedy but who may be impacted by possible contamination of underground water. It is surely imperative that some initiative be undertaken to clean the site, which has remained neglected for the last 22 years," adds the Tata Group statement. Agrees Montek, "I don't think that Ratan's offer to front-end the remediation exercise at the Union Carbide plant should be misconstrued and seen negatively."

But the fact is that if the Tata offer is accepted, it will benefit Dow.

Legally, it will be construed as a signal that the American firm has nothing to do with the Union Carbide cases. And it will force the MOCF to withdraw its application asking Dow for the Rs 100 crore deposit. As Liveris said in his letter to Sen, "Certainly a withdrawal of the (MOCF) application would be a positive, tangible demonstration that the GoI means what it says about Dow's lack of responsibility in the (Bhopal) matter. "

If Dow is absolved of the legal liabilities, it will be in a better position to pursue its strategy to invest $1 billion in India over the next few years. Recently, it received a positive indicator when the industry ministry, after a green signal from the law ministry, approved Dow's collaboration with Reliance Industries. It meant that India had not blacklisted Dow. Clarifies Montek, "Yes, Dow is viewed as a strategic investor. But that will not have any bearing on its legal liabilities and I have not responded to any such requests that have come my way. I believe justice must be meted out in this case given the gravity of the crime... ."

Finally, the Bhopal fallout may impact the investigations in the Dow bribery case too. On February 13, '07, the American firm reached a settlement with the US Securities Exchange Commission (SEC). It agreed to pay a penalty of $3,25,000 for allegedly bribing Indian central and state officials to secure faster registration and approval for three molecular products in the 1996-2001 period. Dow had deliberately falsified records to hide the $1,00,000 payments.

Union agriculture minister Sharad Pawar has stated that India has ordered a CBI probe and asked the authorities to re-examine the clearances of the three products. When asked whether Dow would be blacklisted, Pawar said that "after investigations, definitely action will be taken against the company".

However, the argument for blacklisting Dow in the bribery case may be diluted if it gets a reprieve in the Carbide case. Its supporters will point out that Bhopal is a much bigger issue and, therefore, India should be more lenient in the bribery case too. And if Dow is neither blacklisted nor asked to pay for the Bhopal remediation, it will enable it to quietly pursue its India-specific strategy.

Posted by bhola at 10:46 AM | Comments (0)

May 13, 2007

Zach Coffin and Aishwarya Bachchan's "Bhopal Movie" to start shooting in January 2008

Priyanka Dasgupta, Times News Network, India

[Text]:

CAN YOU GAS THE TRUTH?

Aishwarya Bachchan comes up for air post-shaadi. The Bachchan bahu plays an Indian-American in search of her father, a plant manager on duty the night of the Bhopal gas oil leak, in an international project. CT detects the leak.

While Abiarsh are busy with their French honeymooning, their fans back home are already curious about which projects Ash will take on post-wedding. Her earlier commitments include Sarkar II and an untitled Karan Johar film. The latest post on the Internet Movie Database Site has it that Ash will be doing a film based on real-lifeincidents of the Bhopal gas tragedy.

Directed and produced by Zachary Coffin the film’s about an Indian-American debutante in search of her father, the plant manager on duty the night of the gas spill disaster. Ash, who is also the executive producer of the film, will play the role of Jasmine Singh. This is Coffin’s debut feature film. He has earlier been an assistant director for a 1998 release –– Simple Gifts.

Talking about the project Coffin said, “I want to make a film that’s as world class as Gandhi. Ash and I had agreed to do this project in December 2004. The script took time to develop and now I’m aiming to start shooting from January 2008. There are schedules in Hollywood and India. There is a huge amount of pre-production work in the film as well.”

Ash, Coffin insists, is perfect for the role. “It’s a very difficult role and there is no other Indian actor who can play it. From the very outset, it was agreed upon that she would act as well as be the executive producer of the film,” says the director. Unlike Provoked’s, Kiranjit Ahluwalia, Ash’s character in the film isn’t based on any one real life character. “The character is fictional but her experiences are based on real issues,” the director explains.

Coffin hopes that the changing dynamics of Ash’s marital status will not change her commitment towards the film, the working title of which is Bhopal Movie. The perception of an actor giving up her career post-wedding is only prevalent in India. In Hollywood, most of the actors are married. Hence, Ash’s changed marital status is a non-issue for me.”

Other members of the cast include Anujam Kher, Irrfan, Shobana, Tannishtha Chatterjee, Kumud Mishra and Nagesh Bhonsle. Legendary
theatre personality Habib Tanvir is also doing a cameo in the film. Having directed a play titled Garam Hava, it was only a “blessing” for Coffin to have got Tanvir on board as an advisor too.

When CT got in touch with Irrfan, he said, “The director has taken my consent. Due to legal issues, I’m not supposed to name my character.” Shobana also confirmed the news from Chennai, saying, “It’s been a while since I acted in Hindi films. I have signed this film.”

Tannishtha, on her part, says, “I play a character who suffered
from the tragedy and even after so many years is still fighting for her rights. In a way she is silent in her protest and I find that challenging to portray on screen.”

Though Ash herself was unavailable for comments, her secretary Hari Singh confirmed that she had earlier committed to do this film. “She wll be returning mid-May and then complete Jodha Akbar. That film will need to be completed before the monsoons. Then, she has given commitments to Sarkar Part II and the Karan Johar film. I know about this Bhopal film and artistes and producers must make more and more such films based on real life. Although she had given her consent, I need to check out the revised policies after the wedding.”

Coffin, who is off to the US from Mumbai on Sunday, is coordinating with Ash’s international manager Simone Sheffield for her January dates.

priyanka.dasgupta@timesnewsnetwork.com

Posted by bhola at 02:19 PM | Comments (0)

May 08, 2007

Dow worker involved in chlorine leak dies, but cause is undetermined. Says Dow, “Our drive-to-zero program is a vision of zero incidents, zero accidents, zero emissions.” And zero truth.

John Lowman, The Facts, May 8, 2007

FREEPORT — The Occupational Safety and Health Administration has fined Dow Chemical Co. $10,000 for four alleged safety violations.

In a document with an official release date of April 30 but available Monday, Dow is fined $5,000 for two alleged offenses and not fined for two others. The action comes after an investigation of a small chlorine release in November.

Dow officials will meet with OSHA representatives today to discuss the citations, company spokeswoman Tracie Copeland said.

The four-point citation states written procedures did not address normal operation, Dow did not implement safe work practices for employees for control of hazards during some operations, did not document equipment compliance, and did not perform appropriate checks and inspections of equipment installation consistent with design specifications and manufacturer’s instructions.

Two of the citations include $5,000 fines. The document is signed by OSHA Houston Area Director Charles E. Williams.

All four are listed as “serious” and involve the Chlorine Liquefaction unit, A-19 block.

However, they do not link Dow to the death of process operator Gerald Hamilton, 36, of Galveston.

On Nov. 15, Hamilton was apparently clearing a pipeline at the plant when less than a third of a gallon of chlorine was released into the air. The next morning — about 12 hours later — he died at Brazosport Regional Health System of an undetermined cause.

Hamilton, who worked at Dow just more than a year, was wearing a breathing apparatus attached to an oxygen tank while he was clearing the line. It is not known if he inhaled any of the released chlorine and an autopsy report is still pending.

Hamilton’s body was sent to Galveston County Chief Medical Examiner Dr. Stephen Pustilnik’s office.

“We still have not completed that,” a spokeswoman with Pustilnik’s office said Monday. “We had to get medical records from other hospitals and we have all that, but there’s nothing on the case yet.”

Dow reserved comment on OSHA’s findings.

“It would be premature to talk about the details of this at this time,” Copeland said. “Serious is the second from the bottom in regards to severity of violation or citation, with the bottom being the lowest level in this case. I’m confident in Dow’s safety and operation procedures and policies. The company’s focus on employees and the community is strong, and our safety and environmental polices and procedures are outstanding.

“Our heart goes out to the family and co-workers of any employee who passes away,” she said. “They are part of our family, too.”

Charlie Singletary, business manager for Union of Operating Engineers Local 564, is concerned that the chemical industry as a whole is more interested in safety records than the safety of individual workers.

“The union feels that the culture of the petrochemical industry as a whole has been to drive injuries and incidents to zero,” Singletary said. “The employees feel that in doing so, instead of reporting near-misses and accidents, it’s easier to make it go away. We’ve had a pretty good relationship with the Dow Chemical Company over the last several years and hope to maintain that, but we need to seriously look into safety.”

Companies share information industrywide, and Dow employees are urged to report any mishap, Copeland said.

“My experience with Dow is the consequences of not reporting an incident, injury or near-miss far outweigh any consequences of doing so,” she said.

The 10-page citation gives Dow until May 24 to remedy alleged violations.

John Lowman covers industry for The Facts. Contact him at (979)237-0151

Posted by bhola at 05:15 PM | Comments (0)

May 07, 2007

Toxic waste not Ankleshwar's cup of tea, says German study, but director confident of disposal

Indian Express, May 3, 2007

Vadodara, May 2: It is not just the experts who contended that the Bhopal Gas Tragedy waste cannot be disposed off at the Ankleshwar incinerator. An independent study conducted barely two months ago by German company GTZ based in Frankfurt, raised doubts about the capacity of the Ankleshwar incinerators to handle the disposal of toxic waste. The study, carried out in conjunction with the Karnataka State Pollution Control Board, throws up some startling facts about the Ankleshwar incinerator like its small size, high emission of dust and gases and untreated ash disposal.

Speaking to The Indian Express, Ashok Panjwani, Director of Bharuch Enviro Infrastructure Limited (BEIL) that runs the incinerator said he had no misgivings. "Technically, there is no problem, we have been handling chemical waste for about one and a half years. The protests are more emotional than technical," Panjwani said.

The major difference that GTZ found between the two incinerators was in size and capacity. The report states that while the Biebesheim incinerator could handle drums with a capacity of 200 litres, the Ankleshwar one could handle only those drums that were lesser than 60 litres. According to the report, this aspect might disturb the thermal destruction. The report found no fire detectors in storage areas and no on-site fire brigade. Also, drums larger than 60 litres must be manually emptied and repacked in plastic bags, which could harm the employees in Ankleshwar, stated the report.

Commenting about the emissions after incineration, the report stated that after incineration, the emissions of total organic carbon and nitrogen oxide (mono, di and so on) at Ankleshwar might exceed the German permit limit value by a factor of 2 and emissions of dust and acidic gases by factors of 4 and 5. The GTZ researchers also found that the residual ash from incineration was disposed without further treatment in the Ankleshwar landfill. This residual waste might contain heavy metals that were volatilised during combustion, which poses a serious health hazard. Also, this residual ash was found not suitable for landfill disposal according to German standards.

The study report, which The Indian Express possesses, was aimed at comparing incinerators, facilities and procedures for hazardous and toxic wastes in India and Germany from the technical and ecological point of view. It also assessed the differences in equipment and environmental management of incinerators.

When asked, Panjwani agreed that though many such studies have been carried out, the BEIL incinerator had already handled waste more toxic than that of the Union Carbide's. "This incinerator was built according to our requirement, I do not know what the German incinerator was required for. But I am sure we can handle this," he said.

Posted by bhola at 08:09 PM | Comments (0)

May 05, 2007

Indian government assures action against Dow Chemicals

The Statesman, New Delhi, May 4, 2007

NEW DELHI, May 4: The government today assured that it would take
action against Dow Chemicals, the multinational company which took
over the controversial Union Carbide in 2001, if the company is found
guilty with respect to reports that it bribed Indian officials to get
its products registered.

Ms Brinda Karat of the CPI-M alleged in the Rajya Sabha that these
products are banned in the US and other developed countries due to
adverse effect on children, and demanded blacklisting of the company.
The issue was raised by BJP MP S S Ahluwalia who cited reports of US
Securities Exchange Commission (SEC) about confessions by Dow
Chemicals regarding it having bribed Indian officials some years ago
for securing approval of its products.

The MP also queried the minister about the MNC allegedly pressuring
the government to get rid of its financial liability for clean up of
the Bhopal toxic waste.

For more stories on this subject see our "Dow in India" section

Posted by bhola at 09:05 AM | Comments (0)