Brief review of industrial pollution, compliance methods like CSR, and other methods to control pollution in Telangana, India

1. 04/06/17
1
INDUSTRIALINDUSTRIAL
POLLUTION ANDPOLLUTION AND
CONTROLCONTROL
Dr. Prabha PanthDr. Prabha Panth
Prof. of Economics,Prof. of Economics,
Osmania University,Osmania University,
HyderabadHyderabad

2. • Economic development: is synonymous
with industrial development.
• Investment ⇒ Capital formation ⇒
Industrialisation.
⇒ Economic development as structure of
production changes ⇒ mechanisation.
• Industrial growth leads to Economic
growth
• increase in output, employment, exports.
• This is its positive side.

3. Environmental Impacts
• Negative side of industrialisation are its
adverse environmental impacts.
• Pollution and natural resources depletion
are the negative impacts of industrial
growth.
• More production → more natural
resources needed as inputs → natural
resources are depleted.
• More production → more pollution →
Environment is destroyed.

4. Industrial Pollution
• Industrial pollution is an externality,
causing immense environmental
damages.
• Air and water pollution, solid wastes,
radiation, noise, and vibrations released
by industries are all adversely affecting the
environment.
• Health of the people is being affected,
• Ecological systems are destroyed
• Natural resources are depleted

6. Industrial Emissions
Share of Suspended Particulate Matter Load
(tonnes/day) by Different Categories of
Industries (With Control Device), Total Load =
5365 tonnes/day
Sugar
10%
Thermal
Power
Plants
82%
Others
1%
Cement
7%

7. Share of Sulphur Dioxide Load (Tonnes / day)
By different categories of Industries
(Total Load = 3715 Tonnes / day)
Others
1%
Oil Refineries
3%
Sulphuric Acid
Plants
2%
Thermal Power
Plants
89%
Steel
5%

8. Pollution
Hotspots

9. Quality of Water Bodies in AP
(2009)
Water body BOD mg/l All India
Polluted Rank
River Musi, Hyderabad 225 4th
Saroornagar tank ,
Hyderabad
71 12th
Gandigudem
groundwater, Medak
Dist.
60 13th
Hussain Sagar Lake,
Hyderabad
33 25th
CPCB BOD standards for drinking and bathing = 2 to 3 mg/l

10. Chart 1. Red Operating Units - District wise
Mahaboobnagar
3%
Nalgonda
5%
Hyderabad
5%
Visakhapatnam
5%
Nellore
3%
Krishna
9%
East Godavari
7%
Sangareddy-II, Medak
6%
Sangareddy-I, Medak
5%
Srikakulam
1%
Kadapa
0%Vizianagaram
1%
Khammam
1%
Anantapur
2%West Godavari
3%
Guntur
3%
Nizamabad
0%
Ranga Reddy-I
14%
Ranga Reddy-II
15%
Ranga Reddy-II Ranga Reddy-I Krishna East Godavari Sangareddy-II, Medak
Visakhapatnam Hyderabad Nalgonda Sangareddy-I, Medak Mahaboobnagar
Nellore Guntur Chittoor Kurnool West Godavari
Karimnagar Anantapur Adilabad Khammam Warangal
Prakasam Vizianagaram Srikakulam Kadapa Nizamabad

11. Control Measures
• Polluter Pays Principle
• Environmental laws, including industrial
pollution control laws are passed by the
Ministry of Environment and Forests.
• Pollution control laws are implemented by
the CPCB at the centre, and SPCBs at the
state level.
• Violation of pollution norms invites various
penalties – such as fines, payment of
compensation, closure of units, etc.

12. Cost of Pollution Compliance
• In a research project
conducted by us, we
estimated the
average annual cost
of compliance (fixed
plus running costs) for
different sized Red
and Orange firms in
AP for the year 2007,
per annum:
Small scale
units
Rs. 1.5
lakhs
Medium
sized firm
Rs. 13.11
lakhs
Large
scale firm
Rs. 1990
lakhs

13. • Industries feel that the cost of pollution
control will reduce their profits.
• They try to sidestep pollution control
regulations.
• Lax implementation of environmental laws,
• Corruption and bribery,
• Flouting Court orders
• Political clout,
• International clout
Reasons for non-compliance

14. Voluntary Measures to reduce
Industrial Pollution
• Industries have been asked to take the
responsibility of their environmental and
social impacts.
• Different methods have been formulated:
– CSR: Corporate Social Responsibility
• Reduce wastes at source:
– Cleaner Production methods
– Waste Minimisation
– Recycling – wastes and water

15. Corporate Social Responsibility
• Objective: To include social and
environmental accountability into the
activities of corporate, financial and other
companies.
• Corporate sector expected to be
increasingly more responsible, and
accountable to society as a whole.
• Take corrective action to mitigate the
negative impacts of their production.

16. The Triple-bottom line
• Who regulates?
CSRCSR
Multi stakeholder
initiatives/co-regulation
Legal
regulation
Self
regulation

17. Some findings:
• In a survey of 1000 large firms by
karmayog, hardly 50% conducting some
type of CSR.
• None of the companies rated a full 5 points,
• Almost 50% had zero rating,
• Only 1%, i.e. 10 out of 1000 companies had a rating of 4.
• This includes: ethical practices, environmentally safe
products, at least 2% of sales revenue on CSR, etc.

18. Pollution Violation Penalties
• Penalties on defaulting industries. But
these are not very effective:
– Closure: 285/2301 or 12.4% of Red units
closed for non-compliance in India in 2004
– Fines or Bank Guarantees : MPCB collected
Rs.63.95 lakhs as bank guarantee in 2005

19. Pollution Violation Penalties
– Court cases: 586 filed by MPCB, only
– Compensation: Reddy labs to pay
compensation Rs.0.42 million to villages in
Bollaram area in 2002-03.
– (Average profit of a Reddy unit in Bollaram:
Rs. 357 million)

20. Green Washing?
• CSR criticised as it leads to “green
washing” by rouge industries.
– Infamous Bhopal Tragedy: In 2001, the US-
based gigantic Dow Chemical purchased
Union Carbide, thereby acquiring its assets
and liabilities.

21. Green Washing?
– But steadfastly refusing to clean up the site,
provide safe drinking water or compensate
the victims, or even disclose the composition
of the gas leak.
– But with annual sales of $28 billion, it says in
its web site: “committed to the principles of
Sustainable Development and to balance
economic, environmental and social
responsibilities.”

22. Green Washing
 COCA COLA: CSR statement: “To socially and
economically empower communities around our
operations, by creating enabling environment around our
plants, for the betterment of communities through
sustainable projects”
But has been sued for depleting groundwater and
dumping toxic waste around its Palakkad plant between
1999 and 2004.
Has been asked to pay $47 million compensation for
causing environmental damage at its bottling plant in
Kerala, March 22, 2010.

24. Thank You