The Peninsula Foundation

Category: South Asia

  • Effect of Neo-Liberal Globalisation on Women in Garment Industries: A Third World Perspective

    Effect of Neo-Liberal Globalisation on Women in Garment Industries: A Third World Perspective

    Abstract

    Globalisation is a phenomenon that has brought about an effective change in the nature of the economy of the world nations. An inevitable result of this has been industrialisation, from heavy industries like iron and steel to software industries that house recent developments like artificial intelligence. Garment Industries have been a part of this industrial surge and have significantly contributed to the country’s economic growth, involving significant exports. At the heart of this unprecedented growth, an often unsaid and silenced issue remains the labour and lives of millions of women. Women, especially in the so-called third-world countries like Bangladesh,  Cambodia, and India, constitute more than 50% of the labour force in the garment sector. However,  the gender inequality that persists within these industries exists in the form of a lack of safety standards, wage disparity, stringent maternity benefits and improper compensation packages. World organisations like the International Labour Organisation (ILO) have developed projects to ensure decent working conditions. Still, the resultant effect has been scant due to the lack of gendered understanding of the issues. This research aims to illuminate the consequences of organisational patriarchy in comprehending the issues faced by women in the garment sector and subsequent policy framing. The study is based on the assumption that the inclusion of women andan opportunity to voice their concerns is absent. Therefore, there is a need for a gendered lens in framing policies, their implementation and further monitoring. Thus, this understanding will not only enhance the awareness of the working conditions of women in the garment industry but also be an eye-opener concerning the effect of global policies on the female labour force.

    Keywords: Female labour, Globalisation, Gender inequality

     

    Introduction

    The second five-year plan (1956-1961) in India had rapid industrialisation as one of its focuses and followed the Mahalanobis model of production of capital goods. This saw capitalism take the

    reins of development, which later consolidated with globalisation and took the world economy by storm, making possible the impossible, i.e., connecting the global markets. The transnational phenomenon led to the import of frontier technologies, which are highly capital-intensive (Indira  Hirway, 2012). The consequent effect was an improvement in technology and an increase in productivity accompanied by a decrease in employment intensity. This reduction affected the often underrepresented and discriminated group – women. Women’s growth was curtailed by ensuring that patriarchy was perpetuated in the organisational setup as well. The women in the lower strata of the industrial workforce faced the wrath of wage disparity, and the women in the higher echelons had a glass ceiling that prevented them from occupying managerial positions. They also had to endure the double burden of work and household chores, affecting the female labour force participation rate. Garment industries in developing countries like India, Pakistan and Bangladesh have witnessed large-scale employment of women as formal and informal labour to fulfil the needs of international buyers. In this paper, based on secondary research, I would like to traverse the historical aspects that led to globalisation, subsequent policies and the consequential effect it had on women, primarily focusing on export garment industries, which house the highest percentage of employed women.

    Industrialisation and women 

    The post-independence era in India, from 1947 onwards, witnessed industrial growth. The employment of labour also saw a shift from traditional agriculture. “Gender was the primary axis along  which industrial labour and the labour force were constituted.” Very few women worked in factories, and the support and protection they received were also poor compared to men. The policies that catered to labour protection, like the Factories Act (1948),  The Minimum Wages Act (1948) and The Employees’ State Insurance Act (1948) that paraded gender neutrality were gender blind. The ensuing period of globalisation, which questioned the conservative market nature, also brought about changes in the perception of women’s labour. With the world markets creating an arena for exports, the need for developing countries like India to keep up with the race became necessary, and the viable solution was to employ women from the lower strata of the society, mostly Dalits, in the name of empowering them. They were bait in the corporate hawk culture. The governments also failed to visualise the consequences of liberal markets and the capitalists donning the crown.

    As a part of the capitalist world, women were subject to both economic and emotional labour, which affected the female labour force participation rate, and the percentage of women in the informal sector became higher than women in the formal sector. However, there have been a lot of studies on the women employed in the informal sector, and there have also been time-use surveys conducted in this regard. Women’s labour in the formal sector has been consistently neglected due to the common belief that they enjoy the protection of an organised system. This may hold true to some extent, but in the case of garment or textile industries, which are a focus here, women are also the most penalised according to the reports by the International Labour  Organisation (ILO).

    Ministry of Labour and Employment, India – Statistics on Women Labour

    According to the information provided by the Office of Registrar General & Census Commissioner of India in the 2011 Census, the total number of female workers in India is 149.8 million, of which  121.8 and 28.0 million are from rural and urban areas, respectively. Out of the total 149.8 million female workers, 35.9 million females work as cultivators and another 61.5 million as agricultural labourers. Of the remaining female workers, 8.5 million remain in households, and 43.7 million are classified as other workers.

     

    As per Census 2011, the work participation rate for women is 25.51 per cent compared to 25.63  per cent in 2001. The female labour participation rate decreased marginally in 2011 but has seen an improvement from 22.27 per cent in 1991 and 19.67 per cent in 1981. The work participation rate for women in rural areas is 30.02 per cent compared to 15.44 per cent in urban areas.

    As far as the organised sector is concerned, in March 2011, women workers constituted 20.5 per cent of total employment in the organised sector in the country, which is higher by 0.1 per cent compared to the preceding year. As per the last Employment Review by the Directorate General of  Employment & Training (DGE&T), on 31st March 2011, about 59.54 lakh women workers were employed in the organised sector (public and private). Nearly 32.14 lakh women were employed in the community, social, and personal service sectors.

    Feminist Analysis of Existing Laws

    The labour laws in India have thoroughly focused on the idea of promoting growth along with social justice in tandem with the efforts of labour unions. However, despite the state and the unions’ consistent efforts, the laws’ ability to improve women’s living and working conditions was negligible, as described in the landmark report published in 1971, “Towards Equality”. It was an eye-opener to the dire circumstances in which women were surviving with patriarchy clawing its way into not just the domestic sphere but the workplace as well. While acts like the Maternity Benefit Act of 1961 offer relief to women on some levels,  there is a lack of legal awareness among women workers. This is a contributing factor to their being taken advantage of by employers. An analysis of the allocation of Variable Dearness  Allowance of Minimum Wages with effect from October 2022 has no separate mention of women’s labour. The general labour classification in this regard has been Unskilled, Skilled/Clerical, Semi Skilled and Highly skilled are the most probable categories in which women fall under unskilled due to a plethora of reasons. Despite the assumption that the New Labour Code is a relief to women labour across the country, measures must be taken to understand its effective implementation in both the public and private sector organisations.

    Women in Garment Industries

    The garment industries in South Asian nations like India and Bangladesh have been significant contributors to their economies and increased the employment ratio of women in the labour force. “India’s ready-made garment industry contributes around 16 per cent to total export earnings and is the largest foreign exchange earner in the country” (WTO,2019). Post-1980 saw unprecedented growth of the export industry, and the growth chart statistics show that from $2  million in 1960-61 to $696 million in 1980-81, it then increased sharply to $2,236 million in 1990- 91 and to $4,765 million in 1999-2000. The vast wage disparity was the driving force behind the globalisation of the garment industry. Studies have shown that the hourly wage of Indian

    labour is a meagre Rs.8 per hour, whereas a British worker performing the same work received around Rs.420. Thus, the capitalist tendency of the upper class and lower class is synonymous with the imperialist notion of civilised and barbaric groups pushing for cheap labour and higher production of goods.

    The onus of cheap labour fell on women, mainly from the marginalised communities who were desperate for jobs that promised a stable source of income. The Indian state also firmly believed that this was a way to empower women and ensure financial freedom. However, the challenges were masked by the rosy nature of the benefits put forth by the employers. The actual reasons for the employment of women, which were different from the portrayed norms, were: i) the common notion that women in the developing regions were meek beings who would barely retort against any kind of discomfort and would succumb to the system, ii) women will not question the wage disparity for they are fed the patriarchal notion of the superiority of men iii) the stable source of income will not let them rise in protest despite the atrocities meted out to them.

    Here, I would like to discuss a study conducted in Bangalore, Karnataka, which houses more than  800 garment industries and has the largest workforce of women. The exploitative nature of the employment of women in the garment industry is well documented and needs no elaboration. Briefly, the large majority of women, whether working as skilled tailors or as unskilled helpers, do not get even the legally stipulated minimum wage. Workers are frequently required to work overtime, but since this is set against production targets, they are not paid for overtime work. Insecurity of work is one of the most widely reported problems, as employers frequently terminate a woman’s service just before the completion of five years to avoid payment of gratuity. Harsh production targets, sexual and verbal abuse, lack of maternity and other leave, lack of accident insurance, and absence of toilet and creche facilities are some of the commonly stated and widely known features of female employment in garment manufacture. This misery underpins the production of high fashion garments sold in chic stores in the first world and worn by middle and upper-class women who pay for a single dress at a price that exceeds several times the monthly income of a woman who produces it.

    Challenges to women in the garment labour force due to Globalisation

    The post-1991 era in India saw a massive difference in the treatment of women as the labour force in industries, especially the textile sector. Female workers typically migrate from rural areas to work in the garment industry to meet their financial needs. Women labour in the garment industry mostly come from households below the poverty line. Therefore, the proposition for the ’empowerment of women’ through employment in these capitalist industries was thought to pave the road for the emancipation of this vulnerable group. However, with the fast fashion industry booming and the convergence of interests among global consumers, there was and still exists a constant need to satiate consumer behaviour consistently. The mass production of goods became inevitable. This had adverse effects in that it created a hostile working  environment, and reports suggest that it took a toll on the physical and mental health of women:

    i) Impact on physical well-being: The study “Sewing shirts with injured fingers and tears: exploring the experience of female garment workers’ health problems in Bangladesh” found that physical health problems included headaches, eye pain, musculoskeletal pains and fatigue. It further revealed that garment work is also so physically demanding that women cannot work for more than ten years. These findings are consistent with other research, which found that the highest proportion of female workers quit factory work before they reach 40. The workers reported that getting sick and injured was an everyday phenomenon. The doctors thought that women in factories could not work for more than ten years owing to the stressful conditions. This study also described that since the manufacturing units have men as supervisors, it becomes difficult for women to voice their concerns, particularly those related to their menstrual health. Further, this gendered division of labour extends to their home life, where their husbands expect them to fulfil their domestic obligations despite long, physically demanding hours at work.

    ii) Impact on mental well-being: The article “Mental Health Status of Female Workers in Private Apparel Manufacturing Industry in Bangalore City, Karnataka, India” steers the discussion in the direction of the importance of mental health awareness and the need for a safe work environment for women in garment factories. Mental health problems, including depression, have become a global health priority, and socially disadvantaged people are more vulnerable to suffering from mental health problems. There is evidence that scarcity of human resources, limited access to, and cost of mental health services are critical issues in most low- and middle-income countries. Separation from their children is an important issue for them. Most had left their children in their home villages, citing lack of time to care for them due to their long work hours and difficulties in paying for their children’s living costs in the city. They work from morning to night and during weekends, with nobody at home to look after their children. They get to leave only a few times a  year, and the distance to their villages can be up to 10 hours of travel time. As such, they have no option but to leave their children in their village to live with their grandparents. However, avoiding long working hours is impossible, as they need money to provide for their impoverished families.

    To improve the health and well-being of female garment workers, steps should be taken to develop health interventions to meet the needs of this important group of workers who contribute significantly to the country’s economic development.

    Way Forward

    Although women are at a disadvantage, the involvement of women in decision-making becomes indispensable. A developmental perspective based on male priorities and the male concept of the role of women in a patriarchal society such as ours cannot alleviate the lot of women already inhibited by traditional gender-role expectations. Stakeholder theory advocates that firms bear responsibility for the implications of their actions, and based on this, women come under the category of normative stakeholders to whom the industry has a moral obligation: an obligation of stakeholder fairness. Also, stress has to be placed on including women in the policy-making process, thereby increasing accountability of the framed policies. Illiteracy is a global problem and one of the reasons for the deterioration in the status of women and the feminisation of poverty. Ignorance of their rights- political, social, and economic- leads to the exploitation of women and their inability to converge to form a pressure group. The interface between the grassroots women and the activists must be used to build awareness and sensitise people, both men and women. Involving men who are sensitive to women’s issues is a healthy practice. It would benefit the cause of women if their struggle is seen as a fight for human rights,  which it is, and not merely as a gender-based movement.

     

    References

    • Ahmed, F. (2004). The rise of the Bangladesh garment industry: globalisation, women workers, and voice. NWSA Journal, 16(2), 34–45. https://doi.org/10.2979/nws.2004.16.2.34
    • Unni, J., Bali, N., & Vyas, J. H. (1999). Subcontracted women workers in the global economy: the case of the garment industry in India. http://www.sewaresearch.org/pdf/researches/subcontracted.pdf
    • Saha, T. K., Dasgupta, A., Butt, A., & Chattopadhyay, O. (2010). Health status of workers engaged in the small-scale garment industry: How healthy are they? Indian Journal of Community Medicine, 35(1), 179. https://doi.org/10.4103/0970-0218.62584
    • Baud, I., & De Bruijne, G. (1993). Gender, small-scale industry, and development policy. https://doi.org/10.3362/9781780442280
    • Oonk, G., Overeem, P., Peepercamp, M., & Theuws, M. (2012). Maid in India: Young Dalit women continue to suffer exploitative conditions in India’s garment industry. Social Science Research Network. https://doi.org/10.2139/ssrn.2119816
    • Carr, M. (2001). GLOBALISATION AND THE INFORMAL ECONOMY: HOW GLOBAL TRADE AND INVESTMENT IMPACT ON THE WORKING POOR. RePEc: Research Papers in Economics. http://info.worldbank.org/etools/docs/library/76309/dc2002/proceedings/pdfpaper/module6mcmc.pdf
    • Hale, A., & Shaw, L. M. (2001). Women workers and the promise of ethical trade in the globalised garment industry: a serious beginning? Antipode, 33(3), 510–530 https://doi.org/10.1111/1467-8330.00196
    • Mezzadri, A. (2014). Indian Garment clusters and CSR norms: incompatible agendas at the bottom of the garment commodity chain. Oxford Development Studies, 42(2), 238–258. https://doi.org/10.1080/13600818.2014.885939
    • Sharma, L., & Srivastava, M. (2020). A scale to measure organisational stress among women workers in the garment industry. European Journal of Training and Development, 46(9), 820–846. https://doi.org/10.1108/ejtd-04-2019-0060
    • Kabeer, N., & Mahmud, S. (2003). Globalisation, gender, and poverty: Bangladeshi women workers in export and local markets. Journal of International Development, 16(1), 93–109 https://doi.org/10.1002/jid.1065
    • ANNUAL REPORT 2022-23. (n.d.). In Ministry of Labour and Employment. Ministry of Labour and Employment, Government of India.

     

     

    Feature Image Credit: www.changealliance.in

  • As the US exits Afghanistan, who is there to tame Taliban?

    As the US exits Afghanistan, who is there to tame Taliban?

    Sometimes, the best way to triumph over an enemy is to quit the game. In an attempt to honour his election campaign promise of bringing the American soldiers back home, President Trump announced the complete withdrawal of American troops from Afghanistan and Iraq. About eight thousand six hundred remaining boys in boots will return from Afghanistan by Christmas this year. The Taliban, whom American forces have been fighting for the last two decades, is now a closed-door dialogue partner of the White House. The arch-rivals in the eerie battleground are now facing off each other in opulent hotels.

    In Doha, the Afghan government caught up with the Taliban at the much-awaited intra-Afghan peace talk, held in September. 

    In the two-decade-long war, America has paid enormously in currency, diplomacy, and defence. It has cost the US exchequer almost $2 trillion. Several efforts to bring peace have gone in vain. Ultimately, Washington has successfully brought the Taliban and the Afghan government to talk to each other. The two belligerent parties are now engaged in the tete-a-tete. In Doha, the Afghan government caught up with the Taliban at the much-awaited intra-Afghan peace talk, held in September. Despite several attempts, an agreement between the Taliban and the Afghan government could not take place earlier as the bellicose force never recognized the legitimacy of the elected government in Afghanistan. In the eyes of the Taliban, the incumbent in Kabul remains a puppet government of the Western powers. What contrasts the most between the present administration and the earlier Talibani rule is their diametrically opposite ideologies. Whereas the present system in Afghanistan runs democratically, the Taliban believes in the Islamic Sharia law. The battle is now between democracy and theocracy.

    The ongoing peace process is a continuum of American mediation between the Taliban and the Afghan government since February 2020.  White House is nearing an imminent peace deal with the Taliban as they are no longer deeply interested in Afghanistan. Washington’s priority is now countering China’s growing influence.

    In the previous peace talks, the western states sat with the Taliban, disdaining the Afghan government. Even Russia’s attempts failed to produce any fruitful results in favour of Afghanistan. One of the major reasons for the failure is about diluting the Afghan government authority. The Afghan government never endorsed the efforts of foreign nations in the Afghan peace negotiations, in which the Afghan government itself is side-lined. Afghan government affirmed that any kind of peace deal would not be entertained as the legitimate government was not a part of it as it was a clear violation of Afghan sovereignty.  Afghan government took the issue to the United Nations and accused Pakistan of bypassing it in peace talks with the Taliban.

    a large area of Afghanistan and its people are under the Taliban’s control. The Taliban is collecting taxes from the citizens to exercise their undisputed rule.

    Unlike the previous attempts, the intra-Afghan dialogue has raised much hope among the Afghans, the Government, and the international community. But both parties are likely to face many tough challenges to achieve the desired outcome.  The Taliban has already violated the agreement with the United States that resulted in the death of Afghan civilians and army personnel but stresses that it is continuing with the ceasefire. It is possible that by claiming to maintain the ceasefire the Taliban is trying to put pressure on the Afghan government. Despite this hostile situation, the Afghan government has agreed to negotiate with the Taliban mainly for two reasons. First, most of the International Security Assistance Forces and North Atlantic Treaty Organization (NATO) forces have left Afghanistan. The Afghan security forces have neither the training nor the institutional mechanism to provide security to its people. Second, a large area of Afghanistan and its people are under the Taliban’s control. The Taliban is collecting taxes from the citizens to exercise their undisputed rule.

    Unlike the previous peace processes, the current one does not rely much on foreign countries. But the peace deal is likely to affect Afghanistan’s external relations adversely. If the Taliban reverts to its Islamic radicalism, Afghanistan may lose billions of foreign aid it has been receiving since the last decade for the reconstruction of the country. The Afghan government worries that the premature departure of American troops may have a negative impact on international assistance.

    Although both parties agreed to negotiate on the peace deal, there is dissatisfaction within the cadres of the parties. In the recent elections, the two Presidential contestants each claimed electoral victory. A power-sharing arrangement was concluded where Ashraf Ghani is the President and Abdullah Abdullah exercises power as the chairperson of the High Council for National Reconciliation. On the Taliban side, many leaders do not support the peace process as they believe that they could win the Afghan war by military means. They consider  Pentagon’s departure from Afghanistan as a sign of their victory.

    The Taliban continues to maintain its contact with the Al-Qaeda, according to a UN security council report. The US -Taliban agreement of February demands a complete divorce between the Taliban and the Al-Qaeda.  UN reports and the violation of ceasefire show that the Taliban is not adhering to the agreement. Once the peace deal is completed, the Taliban could take advantage of the absence of US troops in Afghanistan and renege on their commitments by maintaining close ties with the Al Qaeda, Haqqani Network, and the other extremist groups. The training camps of these Islamist terrorist groups are being used by Pakistan based terror outfits like Lashkar and Jaish-e-Mohammed. When Soviet troops left Afghanistan in 1989, insurgency and terrorism increased in Kashmir. It saw a drastic fall when Washington waged war on Taliban and other Islamist extremist groups.

    If the Sharia law returns to Afghanistan, all the democratic rights and the freedom that the Afghan people have seen since the last decade, are likely to be lost.

    The consequences would be grave if the peace deal doesn’t fetch the desired results. The peace deal is necessary for the Afghan government in maintaining peace and stability in Afghanistan. If the Sharia law returns to Afghanistan, all the democratic rights and the freedom that the Afghan people have seen since the last decade, are likely to be lost. Even if a peace deal fructifies, it may not ensure peace for every section of society. During the previous Taliban rule, the fundamental rights of women- ranging from education to employment, were denied. Women had to live a sub-human life. At present, women hold 28 percent of the total seats in the parliament. So, if the Sharia law is enacted again, it will deny the basic rights of Afghan women. Millions of Afghan refugees in neighbouring Iran, Pakistan, and elsewhere in European countries cannot hope to return home. The host countries, however, have started sending back the Afghan refugees forcefully amid instability.

    Afghanistan is a country of over a hundred ethnic groups, tribes, non-Muslims, and other communities. Most ethnic groups have a conflict with each other. In recent times, the Taliban attacked the non-Muslim communities, especially Hindus and Sikhs. The Ministry of External Affairs of India facilitated the travels of a few Hindu families to India. Even after the Afghan government concludes a peace deal with the Taliban, conflicts may continue and peace may still be elusive. The effectiveness of the peace deal will depend on the commitments of each party.

    European countries do not have the military or economic strength to prosecute overseas conflicts. The internal mechanism of NATO is weaker than before. And after the Brexit deal, the fragmented European union lacks the political will to intervene in the war-torn state. China’s interests in Afghanistan are mostly commercial. Infrastructures or projects under Belt and Road Initiative can’t be built amid the carnage. China has the political, financial, and military strength to fill the void, after the complete withdrawal of the US forces. The Chinese financial contribution in Afghanistan is a clear sign that the country has a long-term strategy in the region. This apart, China has security concerns as well in Afghanistan. The rise of extremist movements in Afghanistan is likely to impact security in China, especially in Xinjiang province. In recent years, China has increased its military ties with Afghanistan. In the absence of the American troops, Afghanistan may consider China as possible support.

    Once the US exits, Kabul will have an option to raise the peace issue in the Shanghai Cooperation Organization (SCO). The SCO can be the main military and economic block in Asia. Except for Turkmenistan, all the bordering countries of Afghanistan and other major players in South Asia have either members-status or observer status at the SCO. It can certainly play a very effective role as the peacemaker providing its members, each with considerably different stakes in Afghanistan can get their act together.

    The Taliban in the Afghan government would provide political leverage to Pakistan over India.

    If the Taliban assumes power, India-Afghanistan bonhomie will turn frosty. Unlike other countries, the Indian government never supported the Taliban. India has been a staunch supporter of Afghan-led, Afghan controlled and Afghan-owned peace deal. Pakistan has always been supportive of the Taliban as it serves its strategic interests. The Taliban in the Afghan government would provide political leverage to Pakistan over India. Seeing that it has been left out of the Afghan peace talks, it appears that India is coming around to talk to the Taliban.

    Afghans are exhausted from bloodshed in the last few decades. The region has turned into a breeding ground for Islamic State in Khorasan, Al-Qaeda, and other terrorist groups. A stable and democratic Afghan government is necessary for maintaining peace in the South Asian region. As the effectiveness of SAARC continues to be hampered by India-Pakistan animosity, other South Asian states, Organization of Islamic Cooperation member states, and other Islamic states like Saudi Arabia or Turkey should act to restrain the Taliban and pave the way for peace in Afghanistan.

     

    Image: US Secretary of State Mike Pompeo meets with Taliban’s Mullah Abdul Ghani Baradar and members of his negotiating team. Credit: www.voanews.com

     

  • The Law of Armed Conflict and its continuing relevance to the South Asian Region

    The Law of Armed Conflict and its continuing relevance to the South Asian Region

    The South Asian region has had its share of recent historical experiences with large scale violations as well as allegations of large scale violations of international humanitarian law (IHL).2 This applies as much to instances of international and non-international armed conflict as it does to the situations created by new threats to peace and security such as terrorism. Memories of some of these unfortunate events have not faded over the years. For the sake of convenience, the paper is divided into two parts. The first part elaborates specific examples of IHL related issues in South Asia and also deals with some of the major thematic issues in the context of the region. The second part highlights the challenges to IHL application and implementation in this region. The conclusion summarizes the main strands in IHL’s relevance to the South Asian context. The most interesting aspect of our enquiry that stares us in the face is the fact that IHL related issues apply to almost all South Asian countries. The degree of intensity may differ but the fact remains that acts that attract universally applicable IHL provisions are found aplenty in the region.

    Image Credit: New York Times

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    The Law of Armed Conflict and its continuing relevance to the South Asian Region

  • Modi’s move to engage SAARC on COVID-19 shows his capacity to surprise

    Modi’s move to engage SAARC on COVID-19 shows his capacity to surprise

    Category : Global Health/SAARC

    Title : Modi’s move to engage SAARC on COVID-19 shows his capacity to surprise

    Author : Kanwal Sibal 16-03-2020

    Former foreign secretary, Kanwal Sibal, observes that Prime Minister Modi’s initiative to organise a video-conference of Saarc leaders to develop together a roadmap to fight the challenge of COVID-19 is a well thought out strategy and shows his capacity to surprise. Modi’s move could inject new life into Saarc, just when India was seen as downgrading the Saarc platform for stronger regional cooperation and promoting Bimstec.

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  • India and Nepal: Energy Cooperation

    India and Nepal: Energy Cooperation

    Introduction

    Sustained availability of energy at affordable cost is an essential prerequisite for the growth of a country. Currently the energy consumption per capita in case of Nepal is134 KWH per capita per year, as against world average of 2674 KWH per capita per year.

    GDP Per Capita in $ (PPP)

    Country Energy Consumption in kWh per capita per year GDP Per Capita in $ (PPP) GDP Per Capita in $ (Nominal)
    World Average 2674 11673 11673
    Bhutan 2779 3392 3392
    India 1122 1980 1980
    Maldives 1122 9802 9802
    Pakistan 471 539 539
    Sri Lanka 414 4135 4135
    Bangladesh 351 1564 1564
    Myanmar 193 1256 1256
    Afghanistan 141 538 538
    Nepal 134 900 900

    Table-1: Energy Consumption Vs Gross Domestic Product
    Source:  1.GDP figures for 2017 vide https://www.worldometers.info/gdp/gdp-per-capita
         2.World Fact Book: Power consumption for various countries of the World.

    Although correlation between energy consumption and the prosperity depends on a number of factors like population but a fact which clearly overshadows others is that as energy consumption increases the prosperity increases. This relationship is equally valid for reverse relationship, i.e. as prosperity increases the necessity for additional energy becomes obligatory. Another interesting observation can be made based on the content of this table. Bhutan is a land locked country which has hardly any major industry in that country, yet their GDP per capita is more than India’s. An examination suggests that Bhutan has adequate hydro resources and hydroelectricity generated exploiting her indigenous resources is far more than her requirement. This surplus generation is sold by Bhutan to India. Revenue thus earned has transformed the country from a poor developing country to a prosperous country quite distinct from other South Asian countries. For the record Bhutan’s revenue from hydro power is 27% of the entire govt revenue and is 14% of Bhutan’s GDP. This also flags an approach which can also help other South Asian countries to improve their economic strength by exploiting their indigenous resources. Another country of South Asia; Nepal can benefit from the model which Bhutan is currently following for sharing its energy resources with India in a ‘win-win’ situation.

    Topography of Nepal

    topography-of-nepal

    Map1: Nepal and its Rivers and Physical features
    Source: https://en.wikipedia.org/wiki/Geography_of_Nepal 

    A report of International Hydropower Association, “Bhutan” uploaded on https://www.hydropower.org/country-profile/bhutanography_of_Nepal 

    • Lie of the country is such that all the rivers flow from Nepal to India.
    • High Himalayas separate Nepal from Tibet, whereas southern side of the country is having  a terrain which is plain and that separates Nepal from India therefore while Northern Areas of Nepal act as a barrier between Nepal and Tibet, plains in southern side of the country lends itself for cooperation between India and Nepal. Recent operationalization of an oil pipeline from Motihari in Bihar to Amlekhganj in Nepal is a manifestation of such a cooperation (Little more about it a little later.)
    • Nepal has a huge hydropower potential. In fact, the perennial nature of Nepali rivers and the steep gradient of the country’s topography provide ideal conditions for the development of some of the world’s largest hydroelectric projects in Nepal. Current estimates are that Nepal has approximately 43,000 MW of economically feasible hydropower potential. However, the present situation is that Nepal has developed only approximately 753 MW of hydropower. Therefore, bulk of the economically feasible generation has not been realized yet. Besides, the multi-purpose secondary and tertiary benefits have not been realised from the development of its rivers. Nepal is utilising only 2% of it (i.e., 98% remains unutilised). It may be noted that an optimum exploitation of the hydro resources will contribute substantially to the financial well-being of Nepal. However, it is also a fact that Nepal neither has the financial muscle nor technical knowhow to harness its hydro resources. Therefore, support from friendly foreign countries becomes essential. China has been trying to make inroads into Nepal but whether it can be cost-effective or not is something that needs to be examined in carefully. India, on the contrary, has everything in her favour to support hydro power exploitation by Nepal. In fact power generated in Nepal can also be shared with Bangladesh using Indian grid system, which will be an excellent example of Nepal-India-Bangladesh cooperation, and still better as a BBIN (Bhutan-Bangladesh- India-Nepal) initiative and will be a ‘Win Win’ situation for all three countries.  India will have to use all its traditional heft with Nepal, its diplomatic skills, financial support to beat China who is trying hard to gain a foothold in Nepal’s Hydro energy exploitation domain as they are desperately wanting power.

    Map-3: River Systems of Nepal
    Source: Firoz Alam et al, “A review of hydropower projects in Nepal1st International Conference on Energy and Power”, presented during ICEP2016 at RMIT University, Melbourne, Australia, 14-16 December 2016 and Available online at www.sciencedirect.com ScienceDirect Energy Procedia 110 (2017) 581 – 585

    • While planning hydro power plants in Nepal, some extra care would be required to be undertaken. Nepal’s topography is unstable due to seismic activities. Hence, all hydropower plants with dam must be well planned and designed to mitigate the environmental impact. Also most Himalayan Rivers contain huge quantities of sediment with hard abrasive particles. The region’s climate and tectonic conditions as well as human activities are highly conducive for erosion and sedimentation. Therefore, sediment management is paramount for the safety, reliability and longer life of infrastructures (hydropower dam, equipment, roads, bridges, irrigation systems and drinking water).

    As close neighbours, India and Nepal share unique ties of friendship and cooperation characterised by an open border and deep-rooted people-to-people contacts of kinship and culture. There has been a long tradition of free movement of people across the border. Nepal shares a border of over 1850 km with five Indian states – Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand. The India-Nepal Treaty of Peace and Friendship of 1950 forms the bedrock of the special relations that exist between India and Nepal. Nepalese citizens avail facilities and opportunities at par with Indian citizens in accordance with the provisions of the Treaty. Nearly 6 million Nepalese citizens live and work in India. However Nepal is still not well developed and as has been explained earlier suffer from lack adequate energy to fuel its development. India has been a major partner in exploiting its indigenous energy resources and also making up the shortfall on this account.

    Potential and Scope of Hydro Power Cooperation

    Certain studies have been done to ascertain scope for the Indo-Nepal Cooperation in the domain of energy. It has been concluded that in the high build scenario, Nepal’s hydropower capacity is estimated to be 4551 MW. The generation cost in an arrangement of Indo-Nepal combined system would fall by approximately US $106 billion per year. This enhanced capacity will help Nepal to increase her power export to India by 60%. However Nepal’s high build out hydro resources would be fully utilised if operations between Nepal and India are further coordinated and an economic union strategy adopted by the two countries. Effectively, this would mean that trade with Nepal is institutionally is same as trade is between Indian States. Such enhanced power generation will help Nepal to become net exporter of power during dry as well as wet season, with reduced generation cost. On the contrary India ranks 81st in overall energy self-sufficiency at 66% in 2014 . Primary energy consumption in India grew by 7.9% in 2018 and it happens to be the third biggest consumer after China and USA, with 5.8% global share.

    Details of Completed Projects for Energy Cooperation between India and Nepal

    Motihari-Amlekhgunj Oil Pipeline: On 10th September 2019, the Prime Ministers of Nepal and India jointly inaugurated a cross-border oil pipeline through video conferencing. This line will transport fuel to the landlocked country. The aim of this pipe line is to cement India-Nepal ties in the face of major inroads made by China into the Himalayan nation, and seeks to repair the trust deficit between the two countries due to an economic blockade allegedly imposed by India in 2015 to persuade Nepal to change some provisions in its new constitution. Basically the protests at that time were done by people of Madhesh (region bordering India) as they felt that there were certain provisions of the constitution of Nepal which were discriminatory against them. India said at that time that the trucks laden with fuel and medicines, besides other essentials, were stopped by sections of Nepalese population (Madheshis) unhappy with some provisions of their constitution, which they felt were practically disenfranchising them. Nepal, however, viewed it as if India was blocking the supplies to compel Kathmandu to amend the provisions of the constitution that was seen as disenfranchising almost half of the Nepalese population. Therefore, the current initiative seeks to rebuild the confidence between the two countries and will help to bind Nepal closer to New Delhi, economically and strategically. The development comes against the backdrop of recent plans for a rail link between Nepal and China cutting through the Himalayas. There were also plans to link Nepal and China through an energy pipeline running through the Himalayas. Both were seen as means by Nepal to find an alternative to its dependency on India. The 69 km pipeline will transport fuel from the Barauni refinery in Bihar to Amlekhgunj in south-east Nepal and is the first cross-border petroleum products pipeline in South Asia. The Motihari-Amlekhgunj oil pipeline project was first proposed in 1996. The project was put back on the agenda during Prime Minister Narendra Modi’s visit to Kathmandu in 2014. The two governments had signed an agreement to execute the project in August 2015. Construction had begun in April 2018. Construction of the pipeline was undertaken by the Indian Oil Corp. Ltd (IOCL), India’s largest refiner, with an investment of over ₹324 crore, in collaboration with Nepal Oil Corp. Ltd (NOCL). The two sides are also working on building additional storage facility at the Amlekhgunj Depot, wherein NOCL has committed an estimated ₹75 crore. The pipeline can carry up to 2 million metric tonnes of petroleum products each year. Currently, petroleum products are carried from India to Nepal using oil tankers as part of an arrangement which has been in place since 1973. The NOCL not only hopes to save ₹200 crore annually with the new pipeline but will also ensure the transportation is no longer vulnerable to any kind of blockade.

    Power Supply from India to Nepal: India and Nepal have a Power Exchange Agreement since 1971 for meeting the power requirements in the border areas of the two countries, taking advantage of each other’s transmission infrastructure. There are more than twenty 132 kV, 33 kV and 11 kV transmission interconnections which are used both for power exchange in the border areas and for power trade. For enhanced transmission of electricity, the first high-capacity Muzaffarpur (India) – Dhalkebar (Nepal) cross-border power transmission line (initially charged at 132 kV), with GoI Letter of credit (LoC) funding of US$ 13.2 million, was completed in 2016. Two additional 132 kV cross-border transmission lines between Kataiya (India) – Kusaha (Nepal) and Raxaul (India) – Parwanipur (Nepal), built with GoI grant assistance, were completed in 2017. India is currently supplying a total of about 450 MW of power to Nepal. An Agreement on ‘Electric Power Trade, Cross-border Transmission Interconnection and Grid Connectivity’ between India and Nepal was signed on 21 October 2014. The Agreement is aimed at facilitating and further strengthening cross-border electricity transmission, grid connectivity and power trade between Nepal and India. The Agreement provides a framework for power trade between the two countries, import by Nepal from India until it becomes power surplus and subsequent import by Indian entities from Nepal, on mutually acceptable terms and conditions. Two mechanisms, Joint Working Group (JWG) and Joint Steering Committee (JSC) envisaged under the Agreement have been established. Joint Technical Team (JTT) was formed for preparation of a long-term integrated transmission plan covering projects up to 2035.

    Cooperation in the Domain of Hydro Energy: Cooperation in water resources primarily concerning the common rivers is one of the most important areas of bilateral relations. A large number of small and large rivers flow from Nepal into India and constitute an important part of the Ganges River basins (Refer Map-3 above). These rivers have the potential to become major sources of irrigation and power for Nepal and India. A three-tier bilateral mechanism was established in 2008, to discuss issues relating to cooperation in water resources, flood management, inundation and hydropower between the two countries. A Development Authority was set up in September 2014 to carry out the Pancheshwar Multipurpose project. A Power Development Agreement (PDA) for the 900 MW Arun-III hydroelectric project between India’s Satluj Jal Vidyut Nigam Limited and the Investment Board of Nepal (IBN) was concluded in November 2014. Also, a PDA for the 900 MW Upper Karnali hydroelectric project was concluded between IBN and M/s GMR in September 2014.

    Projects under Planning/Execution

    Pancheshwar Multipurpose Project: India and Nepal had signed a Treaty known as Mahakali Treaty in February’1996. Implementation of Pancheshwar Multipurpose Project is the centerpiece of the Mahakali Treaty. Required field investigations for the Pancheshwar Multipurpose Project have been completed by a Joint Project Office (JPO-PI) in 2002 (except for some confirmatory tests). But mutually acceptable DPR of Pancheshwar Project is yet to be finalised. The constitution of Pancheswar Development Authority has already been notified. Pancheshwar Multipurpose Project (PMP) is a bilateral project, primarily aimed at energy production and augmenting irrigation in India and Nepal. A Treaty known as “Mahakali Treaty” concerning the integrated development of the Mahakali River, which included Sarada barrage, Tanakpur barrage and Pancheshwar Dam Project, was signed between the Government of Nepal and the Government of India on February 12, 1996. During the year 2009, pursuant to the Article-10 of the Mahakali Treaty, the Government of India and the Government of Nepal agreed and framed draft ToR for setting up the Pancheshwar Development Authority, as an independent autonomous body, for development, execution and operation of the Pancheshwar Multipurpose Project. To accomplish this shared goal, the Terms of Reference (ToR) of the PDA as agreed upon by the two Governments and as may be amended from time to time, were created. As per the Statute of PDA the administrative organs of the authority are the Governing Body (GB) and the Executive Committee (EC). In order to execute the specific tasks assigned to the Governing Body, five meetings of GB have taken place so far. Pancheshwar Main Dam is proposed on River Mahakali (known as River Sarada in India), where the river forms the international boundary between the Far Western Development Region of Nepal and State of Uttarakhand in India. The dam site is around 2.5 km downstream of the confluence of River Sarju with River Mahakali. The project would comprise of a rock-fill dam with central clay core of 311m height from the deepest foundation level. Two underground power houses at Pancheshwar dam, one on each bank of Mahakali River, each with a capacity of (6×400 MW) with the total installed capacity of nearly 4800 MW are proposed to be constructed. The power plant at main dam will be operated as the peaking station to meet energy demand in India and Nepal. A re-regulating dam at Rupaligad is proposed around 27 km downstream of the main dam to even out peaking flows released from Pancheshwar power houses for meeting downstream irrigation water requirement. Here, two underground powerhouses on both sides of river with total installed capacity of 240 MW (2 x 60 MW on either bank) are envisaged. The main dam (when impounded with water up to Flood Regulating Level (FRL)) will form a reservoir of around 11,600 hectare area with a gross storage volume of about 11,355 million cubic metres. The submergence area on Indian side is 7,600 hectare, covering districts namely Pithoragarh, Almora and Champawat in the state of Uttarakhand whereas remaining 4000 hectares of submergence will be in Nepal. The project aims at producing hydro power and enhance the food grains production in both the countries by providing additional irrigation resulting from the augmentation of dry season flows. Year round irrigation will be possible in agricultural land in Kanchanpur district in Nepal due to enhancement in flows during non-monsoon months. The project will generate Two underground power houses at Pancheshwar dam, one on each bank of Mahakali River, each with a capacity of (6×400 MW) with the total installed capacity of nearly 4800 MW are proposed to be constructed. The power plant at main dam will be operated as the peaking station to meet energy demand in India and Nepal. Power generated will be shared equally between both the nations as per Treaty. Irrigation benefits in form of annual irrigation will be about 0.43 Mha, out of this, annual irrigation in Nepal would be 0.17 Mha and remaining 0.26 Mha in India. In addition, due to moderation of flood peak at reservoir(s), incidental flood control benefits for both the countries are also envisaged from the project. Pancheshwar Multipurpose Project is one of the top priority projects to be implemented in phased manner to reap the benefits of the project as early as possible. The work of preparation of Detailed Project Report (DPR) was entrusted to Water and Power Consultancy Services Limited (WAPCOS) by PDA and WAPCOS have in turn submitted the draft final DPR of the project to PDA in November, 2016. At present the finalization of Detailed Project Report (DPR) of the project is underway. A Team of Experts/Officials has been formed by both the countries for discussing and resolving all issues towards finalization of the DPR. After finalization of DPR, the Pancheshwar Development Authority shall undertake the execution, operation and maintenance of the project, including the work of re-regulating dam at Rupaligad site in an integrated manner.

    Sapta-Kosi High Dam Project and SUN Kosi storage cum diversion scheme: After exchange of letter of Understanding between the two Governments in June’ 2004, a Joint Project Office (JPO) was set up in August’ 2004 to undertake detailed field investigations for preparation of DPR of SaptaKosi High Dam Project at Barakshetra in Nepal.  DPR is under progress.

    Kamla and Bagmati Multipurpose Projects The JPO-SKSKI has also been entrusted to undertake the feasibility study of Kamla Dam and preliminary study of Bagmati Dam Projects. These studies are in progress.

    Project Completion Prospects

    Hydro power projects have a long gestation period and therefore, it can safely be assumed that the export from Nepal of power will not be able to commence before 2025. Nepal will be able to export 18 billion kWh in 2025 which will go up to 93 billion kWh by 2035 and then will start flattening and by 2040 it would be 115 trillion Watt hour because by that time it is anticipated that because of the growing prosperity domestic consumption will also pick up. In rainy season when the reservoirs will be at their peak capacity, it is estimated that by 2030 13 GW would be available for export.

    Conclusion

    Notwithstanding the political division within South Asia, it is important to appreciate that the energy resources are monolithic in nature. Due to topography of the country most of the hydropower resources are concentrated in the Himalayas; spanning Nepal, Bhutan and Indian states of Arunachal Pradesh, Sikkim, Uttarakhand and Himachal Pradesh. Hydro power is a form of green energy and it would be ideal in case a mechanism can be evolved to exploit it for common good. It is essential that India, in conjunction with Nepal, Bhutan and Bangladesh, needs to make attempts to make use of energy resources available in all these countries; hydro power is one such resource. In this connection the platform of BBIN (Bhutan-Bangladesh-India-Bhutan-IndiaNepal) needs to be exploited. In fact recent pipeline laid by India between Motihari in Bihar and Amlekhgunj in Nepal is great example of cooperation that benefits the region and the parties involved.