Report of the Select Committee on Land and Environmental Affairs on their study Tour to India, dated 6th August 2005, dated 14 November 2005:

The Select Committee on Land and Environmental Affairs, having undertaken a Study Tour to India, reports as follows:

A. Introduction

In its meeting held on 7th June 2005, the Committee agreed to undertake a study tour to India from 6th – 12th August, to meet and discuss with relevant stakeholders issues relating to Agriculture; Aquaculture; Job Creation and Poverty Alleviation.

1. Delegation

A multi-party delegation, under the leadership of the Chairperson, Rev P Moatshe (ANC) included Mr RJ Tau (ANC); Mr CJ Van Rooyen (ANC); Mr A Watson (DA); Mr F Adams (NNP); Ms BN Dlulane (ANC); Dr F Khan (Researcher) and Mr AA Bawa (Committee Secretary).

2. Objectives of the visit

The objective of the visit was to meet some of the various stakeholders to discuss the following issues:

B. Overview of the report

The report sets out the findings of the delegation as it emerged from presentation by the various officials and on site visits to various Aquaculture farms. It provides an analysis of issues and insight to a host of areas such as, Agriculture; Aquaculture; Job Creation and Poverty Alleviation.

 

 

C. Overview of Study tour

1. Background of Indian economy

The performance of the Indian economy was good during 2003-2004 as GDP grew at 8.2% and inflation contained below 7% during that year. On the international front India’s total global trade touched US$ 112 billion and foreign exchange reserves increased to US$ 1444 billion as at May 2005.

The fundamentals of the Indian economy are sound as India’s current account deficit is less than 1%. The Planning Commission, Government of India has estimated a GDP growth at 8%, savings rate at 26% and investment rate at 28% during the period between 2004 – 2008.

1.1 South African Prospects

Given the trend and government policy, it is estimated that the Indian economy would grow at 6%, benefiting South African companies in the following areas:

      1. Growth in manufacturing will ensure surge in imports of key industrial inputs such as capital equipment, minerals, technology, steel and other ferrous and non – ferrous metals from SA.
      2. Growth in electricity, ceramics, cement will further accentuate imports of coal from SA.
      3. Better performance in mining and querying will improve demand for SA mining technology, consultancy services and mining machinery in India.
      4. Execution of performance in infrastructure projects sectors including electricity, water and road construction will create opportunities for SA companies in doing business in India.
      5. Overall performance of the Indian economy will also create demand for SA products such as fruits; wines and other alcoholic beverages.
      6. Growth of agriculture and favorable monsoon will lead to increase in fertilizer imports from SA.
      7. India is quite advanced in biotechnology including biomedicine and bioinformatics, where SA would gain from the Indian experience through joint ventures and training.
      8. Intensify campaign for attracting power intensive industries to SA due to low cost of power, eg TATA steel Ltd.
      9. Capacity building regarding technical / vocational skills such as jewellery making / design, which are labour intensive industries to absorb the abundant labour in SA.
      10. A companies being encouraged to participate in bidding for tenders in India, such as security equipment; power, mining and infrastructure projects.
      11. The ultimate aim is to sign a Federal Trade Agreement (FTA) between South African Customs Union (SACU) and India.

1.2 South Africa India trade

Ever since the diplomatic relations was established between India and SA in 1993, trade has grown rapidly. India’s imports are mainly capital equipment, crude oil; auto components; chemicals, gold, silver and mineral fuels. South Africa could meet some of India’s import requirements.

Exports from SA to India are expected to grow in future in view of India’s commitment in lowering import duties further which was reflected in the budget presented in the Indian Parliament and the trade policy declared on the 8th April 2005.

Some of the large as well as medium enterprisers of India are exploring investment opportunities in SA, just as a number of leading SA businesses such as SAB Miller; De Beers; Denel and Reutech have set up operation in India.

2. Aquaculture

Definition: It is the domestic harvesting of fish and other species living in water.

Aquaculture comprises a whole range of users, systems, practices and species, operating through a continuum ranging from backyard household ponds to large-scale farms. Shrimp aquaculture in its traditional form has been an important source of food and livelihood for coastal people.

During the past two decades, aquaculture in India has become the fastest growing food-producing sector, and is an increasingly important contributor to national economic development, global food supply, food security and nutrition.

No other species is commercially cultured in India, not even marine fishes. The Rajiv Gandhi Centre for Aquaculture (RGCA) was set up by the Government of India to develop commercial culture technologies for species that command good market potential, particularly marine fishes. In this regard, the RGCA has, for the first time in India, initiated projects for developing marine fish culture in India.

As a first step, RGCA established a commercial hatchery for the production of seabass seeds in India by availing marginal technical advice from the Central Institute of Brackish water Aquaculture (ICAR).

The lack of regulation governing the establishment of shrimp farms, led in some places to improper sitting, overcrowding, changes in land use pattern, and conversion of other habitats. The basic objectives of the programme were the optimum utilisation of coastal saline areas, and for the provision of employment and livelihood security to the more vulnerable sections of the community.

2.1 Development of Fresh Water Aquaculture

The development of Fresh Water Aquaculture is one of the most important production orientated programmes implemented by the States as a Centrally Sponsored Scheme through the Fish Farmers Development Agencies (FFDAs).

During 2000 – 2001, about 36 394 hectare (ha) of water area was brought under scientific fish farming through FFDAs. Government agencies have trained 17 485 fish farmers in improved practices of fish farming and the scheme has benefited about 46 988 people.

In order to increase fish production and promote Aquaculture, four pilot projects were introduced, namely:

2.2 Development of Integrated Coastal Aquaculture

The main objective of this scheme is to utilize the country’s vast brackish water land for fish / shrimp culture as to increase the foreign exchange earnings through increased shrimp production, generation of adequate employment opportunities and to increase the income of farmers.

2.3 Onsite Visits (KOLKATA)

2.3.1. The STATE FISHERIES DEVELOPMENT CORPORATION LIMITED

(S.F.D.C), operating as

NALBAN FISHERIES PROJECT: SEWAGE FED PISCICULTURE FARM

2.3.1.1 History and Objectives

The S.F.D.C was incorporated in March 1966 as a wholly owned Government Company situated in the State of West Bengal, India, also known as Nalban Fisheries Project. It is owned and managed by the State Fisheries Development Corporation Limited and comprises of 174 ha of land, consisting of 3 stocking tanks (164 ha) and 9 rearing tanks (10 ha).

It was previously owned by private parties and in 1979-80 handed over by the Government of West Bengal to the SFDC for pisciculture. The area was developed into a viable sewage fed fishery between 1979–1983, whereafter the commercial pisciculture project started between 1983-84 increasing the cultural area from 49 ha to 174 ha.

The source of the sewage water is the water canal of the Calcutta Municipal Corporation, the flow of sewage water intake and out flow of excess water from the project is regulated by 3 inlets and 3 outlets respectively. The supply of sewage water to the project is normally received 3 days a week, which serves as an ecological way of recycling organic waste.

The objectives of the S.F.D.C are as follows:

          1. Aiding; promoting; scientifically exploiting fisheries and other aquatic products in West Bengal and India.
          2. Purchasing; leasing or taking over rights over tanks; rivers; lakes reservoirs and fresh / salt water bheries.
          3. Carrying on business of fisheries development; any ancillary business and sale / export of fish and other byproducts.
          4. Purchasing; leasing; hiring of boats; ships and fishing equipment.
          5. Setting up cold storage; ice making factory and factory for the extraction / manufacture of fish bye products as well as frozen fish products.

2.3.1.2 Organisational Setup

The management of SFDC is vested in a Board of Directors with the Minister of Fisheries, Government of West Bengal as Chairman. As at 31st March 04 all 3 directors were nominated by the State Government, of which one was the President of SFDC Employees Union, assisted by a team of officers and technical experts.

2.3.1.3 Staff Component

The project has a staff component of a 152 people of which 11 are female, with approximately 65 people daily acting as share catches or daily labourers.

 

2.3.1.4 Species Cultured

The following are species cultured: Indian Major Carp (IMC): Catla; Rahu and Mrigel; Common Carp: Cyprinus; Exotic Carp: Silver Carp and Grass Carp; Air breathing species: Magur; Singhi and Koi; Tilapia: Mozambica and Nilotica

2.3.1.5 Stocking Density

The Nalban Fisheries Project is currently breeding 35 000 – 40 000 fingerlings per hectare per annum.

2.3.1.6 Harvesting of Fish

There is a daily harvesting by one departmental team of 16 permanent workers and also a daily harvesting by 4 parties of share catches of 60 / 65 men who get a cash commission of 2 rupees a kilogram.

 

 

2.3.1.7 Marketing

Besides that which is consumed locally, the bulk of the fresh fish is sold through fish auction centre’s.

2.3.1.8 Other activities

A boating facility has been established in the Nalban Fisheries Project as a source of recreation for the city people, this activity brings in an additional source of revenue for the Corporation.

2.3.1.9 Fish Production

The Nalban Fisheries Project has since 2002 produced the following amount (Metric tons):

 

2.3.2 MUDIALY FISHERMEN’S CO-OPERATIVE SOCIETY LTD (MFCS)

NATURE PARK

2.3.2.1 History and Vision

In November 1961 the Fishermen’s Co-Operative Society named Mudialy Fishermen’s Co-Operative Society Ltd was registered and got a water area on license from the Culcutta Port Commissioner, who retained the right to reclaim any portion for development or any other purpose. The Calcutta Port Trust (CPT) exercised this right in 1988 when the water area was reduced from 250 ha to only 70 ha.

The MFCS has also built this into a "NATURE PARK" comprising the greenery of water bodies, enclosures for Deer; Rabbits; Peacocks and also attracts a variety of migratory and local birds because of the large number of trees planted there.

The MFCS manages an Angan-Wari school under the integrated child development scheme and is responsible for the education; health care and nutrition for nearly 50 children of the community. It has also opened a consumer store to cater for the needs, such as clothes and food at a fair price and to extend good service to the local community.

The vision of the MFCS is to:

The central theme / aim of the co-operative is the production of quality fish using industrial and domestic waste water. The activities of the society evolves around 5 themes, namely:

2.3.2.2 Treatment of industrial and domestic waste water

The average daily loading of sewage water is approximately 23 million liters, of which 70% is from industries and 30% domestic sewage which is passed through 6 ponds called anaerobic tanks, where water is treated manually using liming or biochemical’s. Water hyacinth are usually kept near the anaerobic tanks to facilitate absorption of the oil grease in the effluent, these tanks are often dug in order to reduce the sludge deposition. The second tank where water flows into is the breeding ground for exotic fish which can survive harsh conditions, include omnivorous fish like Tilapia; Nylotica and air breathing fish like Singi; Magur and Koi.

The water is then allowed to flow through the other ponds further improving water quality, permitting better utilization of the recycled nutrients and mineral contents of the sewage in fish culture before being released back into the canal system.

2.3.2.3 Species Cultured

The following are species cultured: Indian Major Carp: Catla; Rohu; Mrigala and Bata; Exotic Carp: Common Carp; Tilapia; Silver Carp; Grass Carp and Nilotica.

2.3.2.4 Fish Production

The MFCS has since 2001 produced the following amount (Metric Tons)

 

3. Poverty Alleviation

The government of India’s poverty alleviation programme can be broadly classified under the following categories:

3.1 Self Employment Programmes

Self employment programmes were introduced at a national level in the late 1970’s and were designed to provide skills, subsidised credit and infrastructure support to small farmers and agricultural labourers so that they could find new sources of income. In 1999 several self – employed programmes were integrated into the Swarnajayanti Gram Swarojgar Yojana (SGSY) programme.

The key aim of the SGSY programme is that it does not seek to promote individual economic activities, but rather seeks to promote self – help groups that are trained in specific skills so that they can formulate micro-enterprise proposals. Such projects are based on activities that are identified for each block on the basis of local resources, skills and markets, which are supported by bank credit and government subsidies.

3.2 Wage Employment Programmes

The first major wage employment programme was introduced in the 1960’s to provide employment to the rural unemployed particularly during the lean agricultural season. The objective of the scheme is to provide additional wage employment with food security in rural areas where beneficiaries are temporarily employed to build community assets and infrastructure. The central and state government shares the cost of the scheme, which includes the distribution of food grain. In 2002, the central government released around 4 million tones of food grain under this scheme.

3.3 Area Development Programmes

This type of programme was introduced in the 1970’s to prevent environmental degradation and provide employment to the poor in these regions. In the mid 90’s, the environment management aspect of these programmes was strengthened by the introduction of watershed development programmes.

Later a scheme was developed to tackle the problem of extreme deprivation in rural parts of the country, with the aim of promoting focused development programmes for rural areas that would help reduce imbalances, speed up development and help rural areas overcome poverty.

3.4 Social Security Programme

The Social security programme was launched at a national level in the 1980’s together with an old age pension scheme, namely:

3.5 Food for Work Programme

An important element of India’s food security regime has been the Food for Work (FFW) programme, which provides poor people with food – typically foodgrains – during periods of unemployment resulting from external calamities such as drought, floods and earthquakes. This programme was started in 2000/01 as a component of the Employment Assurance Scheme (EAS).

FFW is one example (in many countries, an important one) of transferring public resources to identifiable groups of poor people who are vulnerable to crisis or chronic disadvantage of one kind or another. It does so by offering able-bodied people food in exchange for unskilled labour in public works.

The basic principle of FFW is to provide employment to the poor during hard times, to create community assets through labour-intensive work and to pay the labourers in foodgrains or other food items. FFW therefore aims to create win-win situations all round and has been popular among poor countries worldwide.

FFW is perceived as gender-neutral or even pro-women because women within the household are more likely to have control over the food received.

3.6 Special Programme for the Informal Sector – National Policy on Street Vendors

The National policy on Urban Street Vendors which was announced in 2004 was formulated with the objective to give street vendors recognition for their contribution to society and support to a dignified livelihood.

The aim of the Policy is:

To recognise the service rendered by the venders to the economy and promote a supportive environment for them to earn a livelihood.

To recognise their right to a livelihood and give dignity to the informal sector.

To review the legal framework in order to legitimize street vending

To facilitate the use of identified space without obstruction

To regulate street vending through participatory mechanisms and self compliance.

To promote organisations of vendors to facilitate their empowerment.

To strive for promoting social security and financial services by providing access to credit through promotion of self help groups and co-operatives.

4. Tourism Development

The Department of Tourism functions under the auspices of the Ministry of Tourism and Culture and is a nodal agency for the development and promotion of Tourism in India.

Up until recently India relied mainly on domestic tourism, now realizing the huge foreign tourist market with a tourism contribution to the GDP of 4.9% during 2004. India realized that they could not rely on the small tourist information centers and launched the Incredible India Campaign on a national level in order to attract the local and foreign markets.

India has a huge domestic market with regard to pilgrims coming from all parts of India to visit holy sights / shrines and has also embarked on a programme of selecting certain rural areas which are easily accessible and establishing these areas as tourist attraction. These rural villages are set up with the infrastructure to accommodate tourists staying there to experience what rural living is all about and at the same time buy the products which are made by the local people. The revenue generated from this is partly reinvested into the infrastructure of the village empowering the people to become self sufficient.

The Incredible India campaign is aiming to make people aware of the importance of tourism and how it contributes towards poverty alleviation and job creation by offering training courses to taxi driver; customs and immigration officials on how to better service delivery. As part of the campaign India has eased some of their visa restrictions, also opening more air routes to allow for easier access to those wanting to visit India.

In the next 5 years India forecasts that between 15 – 20 million foreign visitors will be entering India, creating approximately 26 million jobs in that period. Domestic travel is encouraged and also traveling of Indians abroad as India has a huge number of scientists; doctors, bio-chemists and IT specialists living and working abroad in countries like the USA, Canada and the UK , thus generating much need revenue.

Under the Incredible India campaign the tourism infrastructure, such as ports of entry are being upgraded and computerised making India more accessible and user friendly.

To date the country’s tourism development plans have resulted in the following:

With regard to plans for the future growth of the tourism industry in India, a number of challenges and constraints have been identified. These include:

 

5. Forestry

Forests provides for major ecological benefits to India such as soil and water conservation, providing a habitat for wildlife and conserving genetic diversity. They also maintain the local micro – climate and help eliminate various pollutants in the air.

These ecological functions are essential for life support, livelihoods and the economy, but the diversion of forests to non-forest use results in the reduction in the flow of such ecological services. In order to compensate for reduction of such ecological services, Central Government has stipulated that those agencies seeking the diversion of forest land to non forest use must compensate indigenous people.

To date Compensatory Afforestation has taken place over approximately 1 million ha of non-forest and degraded forest land. The National Forest Policy of 1988 safeguards the traditional rights of forest dwellers including tribal communities, as the aim of the policy is sustainable development and the involvement of people in protection and regeneration of the forests and environment with shared benefits.

In order to achieve the National Forest Policy goal of 1/3rd forest and tree cover in the country, the Ministry of Environment and Forest (MOEF) have implemented a National Afforestation Programme (NAP) through the decentralised set up of Forest Development Agencies (FDA) at the Forest Division level and Joint Forest Management Committees (JFMCs) at the village level.

The overall objective of the scheme is to develop the forest resources with people participation, focusing on improving the livelihood of forest communities, especially the poor. The NAP programme aims to support and accelerate the ongoing process of devolving forest protection, management and development functions to decentralised institutions of Joint Forest Management Committees (JFMCs) at the village level and Forest Development Agency (FDA) at the forest division level.

Financial support under the NAP scheme is available for:

- Artificial Regeneration

- Bamboo Plantation

- Cane Plantation

- Mixed Plantations of trees having medicinal value

- Regeneration of perennial herbs and shrubs of

medicinal value

- Pasture Development

The Ministry of Environment and Forests have come up with a Research and Development scheme promoting research in multi-disciplinary aspects of environmental protection, conservation and development. The objective is to generate information required to develop strategies, technology and methodologies for better environmental management.

The Ministry of Environment and Forests have identified 3 programmes, namely:

Ecosystem Research programme, which emphasizes on the ecological approach for studying the relationship between man and environment.

Environment Research Programme, which deals with problems related to air, water, soil pollution and development of suitable technologies addressing the pollution in the environment.

Eastern and Western Ghats Programme, which addresses the location of specific problems of resource management in the Eastern and Western regions of the country relating to bio-diversity, land use and the impact of development activities.

6. Agriculture

India is mainly an agricultural country with about 43 % of India's geographical area being used for agricultural activity. With the emergence of new farming techniques and irrigation high agricultural productivity was attained, addressing the issue of producing sufficient food for the increasing population.

India has the world's largest cattle population (193 million), large numbers of sheep and goats, and more water buffalo and camels than any other country. This has placed heavy demands on the grazing lands, both grasslands and forest areas suffer as a result.

The Indian Government has a pricing policy for agricultural products, attempting to ensure favorable prices to the farmers, for their produce, with a view to encouraging higher investment and production. Minimum prices for major agricultural products are announced each year, which are fixed after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP).

With regard to regulations and control, there are no industrial policy licenses required for almost all of the food and agro processing industries, except for some items such as beer, potable alcohol and wines, cane sugar, hydrogenated animal fats and oils, etc.

The agriculture sector has performs a vital function in the economic development of India as it contributes approximately 29.4% of the Gross Domestic Product (GDP), and employs about 64% of the workforce. Significant strides towards ensuring food security have been made in agriculture production.

The following challenges have been encountered by the agricultural sector:

With regard to Genetically Modified Organisms (GMO), India has made some major developments with regard to GMO technology and foresees that in the next 20 years India will be self sufficient with regard to food and wheat security.

The common misconception about GMO is that the seeds can only be used once, but if used properly in conjunction with natural farming it will yield the same results for at least one generation.

The legal framework for GMOs is constituted by the Rules for the Manufacture Use, Import, Export and Storage of Hazardous Micro Organisms, Genetically Engineered Organisms or Cells (1989) adopted under the Environment (Protection) Act.

7. Pollution

The Ministry of Environment and Forests primary concern is the formulation and implementation of policies and programmes relating to conservation of natural resources, biodiversity and prevention of pollution. The overall objectives are the conservation of flora and fauna, prevention and control of pollution, protection of the environment through environmental management programmes and afforestation.

The country’s national policy for environmental management is contained in the national Forest Policy Act of 1988, National Conservation Strategy and Policy Statement on Environment and Development and the Policy Statement for Pollution Control. Recently, a National Environment Policy was drafted and introduced as a guide to implement regulatory reforms, programmes and projects for environmental conservation.

Environmental management in India is maintained through various means, such as:

Impact assessment of Developmental Projects and its re-engineering based on experiences;

Adoption of Cleaner Technologies;

Pollution Control through Preventative Strategies;

Setting up of environmental standards for emissions and effluents;

Scientific Management of Hazardous Waste including Bio-medical Waste and

Networking of Institutions for sharing and exchanges of environmental information

A multi pronged approach combining enforcement of standards, control mechanisms as well as economic instruments are used to deal with the prevention and control of pollution. Great emphasis is given to the formulation of emission and effluent standards for various categories of industries and their implementation through regular monitoring for environmental compliance.

The legislation for pollution control include:

The Indian government came to realise that Small Scale Industries (SSI) contributes to pollution in a major way due to financial constraints and training manpower. This prompted government to undertake a Centrally Sponsored Scheme enabling SSI businesses to set up Common Effluent Treatment Plants (CETP) to control pollution.

The Indian government also gives financial support to various State Pollution Control Boards, Universities and Technical Institutions for upgrading of technologies and capacity building, ensuring better environmental management.

A charter on Corporate Responsibility for Environmental Protection (CREP) has been introduced as a road map for the adoption of improved environmental management practices. With the introduction of various control measures, pollution has been decreased together with an improvement in environmental quality.

8. Challenges facing India

The major problems facing India are the issues of food security for a ever growing population, which has been addressed by the Government of India’s huge capital investment made in GMO technology. The Indian government foresees that in the next 20 years India will be self sufficient with regard to food and wheat security.

Tourism Development is also a problem as India lacks a proper tourism infrastructure, which is being addressed by the Ministry of Tourism under the Incredible India Campaign.

Under this campaign, the infrastructure is being upgraded and computerised, making it more user friendly and has also initiated tourism awareness programmes.

D. Conclusion and Recommendation

Having undertaken the study tour the Committee has noted how India is addressing the issues regarding Food Security, Poverty Alleviation, Tourism Development and Aquaculture.

The Committee aims to give input by means of upcoming legislation from experiences on its Study Tour to India. Thus enabling a better understanding of these issues in order to contribute to the upliftment and enrichment of the lives of average South Africans.

E. List of participants

Department of Animal Husbandry and Fisheries:

Mr A Bhattacharya: Head of Fisheries in the Department of Animal Husbandry and

Fisheries.

Mr PMA Hakeem: Secretary to the Department of Animal Husbandry and

Fisheries.

Ministry of Rural Development

Mr P Sinha: Secretary; Land Reform and Rural Development

Mr VS Sampath: Additional Secretary; Department of Land Resources

Mr BK Saranji: Director Land Reforms

Ministry of Tourism

Mr AK Mishra: Secretary; Ministry of Tourism

Mr A Kant: Joint Secretary; Ministry of Tourism

Mr A Chaturvedi: Director; Ministry of Tourism

Mr R Talwar: Additional Secretary; Ministry of Tourism

Ministry of Water Resources

Mr JH Naryan: Secretary; Ministry of Water Resources

Department of Environment and Forest Conservation

Mr S Chandra: Special Cell; Forestry Conservation

Ms M Gupta: Special Cell; Environment and Forest Conservation

Department of Fisheries; Government of West Bengal

Mr K Nanda: Minister in Charge; Department of Fisheries; Government of

West Bengal

Mr RPS Kahlon: Secretary; Fisheries Department; Government of West Bengal

Member of the Department – Related Parliamentary Standing Committee on Science, Technology, Environment and Forests.

Mr PG Narayanan: Chairman

Prof SD Soz

Dr S Chakraborty

Mr J Singh

Mr DS Judev

Dr R Singh

Mr KK Rai

Mr B Singh

Mr F Fanthome

Mr A Gudhe

Mr RCS Reddy

Mr SS Badal

Mr AV Naik

Mr D Venugopal

Mr SR Yadav

South African High Commission – New Delhi

Mr F Moloi – High Commissioner

Mr D M Nxiweni – Deputy High Commissioner

Mr M Ntshinga – First Secretary: Political & Acting Economic Representative

Mr SE Mayoli – Second Secretary: Political

Mr SC Pradhan – Senior Advisor: Department of Trade and Industry

Report to be considered.