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Industrial pollution and control

  1. 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. 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. 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. 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
  5. 5. 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%
  6. 6. 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%
  7. 7. Pollution Hotspots
  8. 8. 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
  9. 9. 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
  10. 10. 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.
  11. 11. 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
  12. 12. • 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
  13. 13. 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
  14. 14. 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.
  15. 15. The Triple-bottom line • Who regulates? CSRCSR Multi stakeholder initiatives/co-regulation Legal regulation Self regulation
  16. 16. 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.
  17. 17. 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
  18. 18. 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)
  19. 19. 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.
  20. 20. 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.”
  21. 21. 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.
  22. 22. Thank You