HYDROGEN & ETHANOL As Fuels + Monsoon Rains + Corporate Agriculture + Employment

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In This NEWS Bulletin ******************************* On ECO-FRIENDLY FUELS--- 1. CCEA to take up issue of mandatory 10% ethanol blending 2. Hydrogen fuel research needs sops: Montek 3. Monsoon in Mumbai by mid-June On NREGA - for rural employment --- 4. CEFS social audit finds tribals hardpressed for work in Kalahandi CORPORATISATION OF INDIAN AGRICULTURE------ 5. Govt mulls farmland companies 6. Rs 19.5 cr sought for co-op schemes ----------- CCEA to take up issue of mandatory 10% ethanol

blending http://www.financialexpress.com/fe_full_story.php?content_id=166683 ASHOK B SHARMA Posted online : Wednesday, June 06, 2007 at 0000 hours IST NEW DELHI, JUNE 5: The Cabinet Committee on Economic Affairs (CCEA) is slated to deliberate on the issue of increasing the blending of auto-fuel by ethanol from the existing 5% to 10%. At present there is a mandatory provision for 5% blending of auto-fuel by ethanol. This scheme, which began initially in select 9 states, was subsequently extended to cover the entire country. However only five states have not been able to implement the scheme. With a view to bail out the sugar industry from the present critical situation, the

Union food and consumer affairs ministry in a note to the CCEA has proposed to increase the ethanol blending to 10%. At present the sugar industry produces about 550 million litre of ethanol, which is sufficient for the 5% blending programme across the country. Industry have assured the food and consumer affairs ministry, that they are ready to more than double the ethanol production, in case 10% ethanol blending becomes mandatory. Sugar industry is also planning to introduce a more cost-effecting method of extracting ethanol directly from cane. At present ethanol is produced from molasses. The proposal for 10% mandatory blending of auto-fuel has been opposed by a section of the chemical industry and the breweries who apprehend that they will not be able to get enough rectified spirit, molasses or alcohol for use as raw material as sugar industry would be diverting ethanol for

blending of auto-fuel. Though ethanol pricing is quite remunerative at Rs 21.50 per litre, the sugar industry has demanded that the ethanol price should be at parity with the landed price of crude oil. In a note to the CCEA, the food and consumer affairs ministry has cited sugar industry being in a critical situation with an estimated high production of 27.7 million tonne coupled with falling prices, leading to an accumulation of Rs 6,000 crore payable to cane growers as arrears. Therefore, the sugar industry needs to given the option to earn through allied activities like production of ethanol, power cogeneration. The blending of auto-fuel with ethanol would be eco-friendly and also reduce the dependence on import of crude oil.------ Hydrogen fuel research needs sops: Montek

http://www.financialexpress.com/fe_full_story.php?content_id=166159 ASHOK B SHARMA Posted online: Tuesday, June 05, 2007 at 0000 hours IST NEW DELHI, JUN 4: The Planning Commission has favoured subsidies for hydrogen fuel. It suggested subsidy on research as a better option. Inaugurating a conclave on national hydrogen energy road map here on Monday organised by the Union ministry of new and renewable energy alongwith industry bodies, deputy chairman of the Planning Commission Montek Singh Ahluwalia said: “Subsidy is necessary for the scheme aiming at one million hydrogen-fuel driven vehicles by 2020. But we need to ascertain at which point we need to subsidise. It would be better to subsidise research.” Singh said that experiences have shown that subsidies do not necessarily increase the competitiveness of the product or the application. He admitted that the cost of developing was very high and therefore subsidy was necessary. “We need to decide whether subsidies should be given on research or on the product,” he said. Saying that subsidy was necessary to jump-start the programme, he cautioned “It is unlikely to become a plausible solution in the energy security if it continued to be subsidized perpetually.” Delivering the presidential address Union minister of state for new and renewable energy Vilas Muttemwar said his ministry was confident of achieving over 10% of the total installed power generating capacity in the country by 2012 from renewable sources. About 10 lakh solar photovoltaic systems were being used for

domestic lighting purposes, he added. The National Hydrogen Energy Road Map has proposed major initiatives for developing hydrogen-powered engines and fuel cell-based automobiles. Chairman of the steering committee of the National Hydrogen Board Ratan Tata said though the technology remained elusive and posed problems, “the challenges are not insurmountable.” India has largest programmes on renewable energy technologies in the world. The total power generating capacity in the country as of March 2007 was about 1,33,000 MW. Renewable power generating capacity is about 10,252 MW, which contributes 7.75 % of the installed power generating capacity. - Monsoon in Mumbai by mid-June http://www.indianexpress.com/story/32922.html ASHOK B SHARMAPosted online: Thursday, June 07, 2007 at 0000 hrs New Delhi, June 6: The US-based Centre for Ocean Land Atmosphere studies (COLA) has predicted that monsoon would reach Mumbai by June 13. The normal time for the arrival of monsoon in Mumbai is around June 10. There will be heavy rains on the west coast at least till June 21. The situation leading to the emergence of the cyclonic storm Gonu had virtually stalled the progress of the monsoon since May 29. Monsoon has not yet reached Goa after touching the Kerala coast on May 28. Thanks to the subsidence of Gonu, the decks are now cleared for further movement of the Southwest monsoon. Monsoon is also slated to arrive in the next 72 hours in the Northeast region. “The subsidence of Gonu will now cause the monsoon system to come back to its normal state. The winds, which were concentrated on the western Arabian Sea, would now move eastwards and facilitate further movement of the monsoon system along the western coasts of India,” Advisor in the Union Ministry of Earth Sciences Akhilesh Gupta said. The European Centre for Medium Range Weather Forecast has also predicted heavy rains on the western coast and in the southern part of the peninsula in June. According to India Meteorological Department (IMD) the severe cylonic storm which recently generated over northwestern Arabian Sea has moved northwestwards and crossed Oman coast during morning hours of Wednesday, the June 6. Later on, it emerged into Gulf of Oman and lay centred near Lat. 23.5°N and Long. 59.5°E.. The system is likely to weaken gradually and move in a north-northwesterly

direction.--- NREGA SCHEME FOR RURAL EMPOYMENT CEFS social audit finds tribals hardpressed for work in Kalahandi http://www.financialexpress.com/fe_full_story.php?content_id=166766 ASHOK B SHARMA Posted online: Monday, June 11, 2007 at 0000 hours IST NEW DELHI, JUN 10: There are no smiles on the faces of the poverty-stricken tribals of the infamous KBK hunger belt of Orissa. The government’s ambitious National Rural Employment Guarantee Scheme, being implement in the region, has turned out to be a mockery, largely benefiting the implementing authorities at the expense of poor tribals, according to a

survey by Centre for Enviournment and Food Security (CEFS), conducted under the Union government’s social audit programme. The erstwhile Kalahandi-Bolangir-Koraput (KBK) has been divided into six districts, namely Bolangir, Nuapada, Kalahandi, Koraput, Nabrangpur and Rayagada. As the region was known for starvation deaths, it was declared as the region for special attention. According to the survey, there are irregularities in entries in job cards, maintenance of muster rolls and disbursement of payments to the intended beneficiaries. CEFS conducted a survey of 100 villages in the six districts in the last two months. Among the major findings of the CEFS report social audit has not been conducted in any of the 100 villages and the muster rolls have not been checked by the village people. In none of the villages under survey 100-day employment was given. No job cards are issued in 11 villages, no

work was undertaken in 37 villages after issuance of job cards and after 16 months of the launch of the scheme. Job cards issued in 23 villages are not given to the workers, they are still in the custody of panchayat executive officers (PEOs) and junior officers. In 25 villages under survey partial payments have been made to workers and in three village no payments have been made even after 4 to 8 months of work. In 6 villages in Kashipur block in Rayagada district work is being undertaken without issuance any job cards “Our findings reveal a nexus between a chain of officials, from state to village levels, responsible for implementation of the scheme. Benefits are not reaching the beneficiaries," CEFS director, Parashuram Ray told FE.He said the BDO of Nandur block in Koraput district, Jyoti Rajan Mishra had instructed the PEOs not to show any muster rolls to the visiting CEFS team. The PEO of Raisingh gram panchayat, Nagesh Choudhary has given in writing that he would not show any muster roll without the permission of the BDO. The next day when the CEFS team contacted the BDO he said that the permission from the district collector was necessary. The CEFS team even contacted the state commissioner-cum-secretary of panchayati raj, Rabindranath Dash to resolve the issue, but failed. Ray said despite such hindrances, the CEFS team could get some interesting accounts from the people. In Maagaral village card no 2401 was issued to Hari Sisa for 59 day-work, but actually he was offered work for only 20 days. According to the study, there are six enteries in the muster rolls in the name of Hari Sisa. Similarly job card no 2335 was issued to Mini Budi Khilo for 36-day work while he was offered work for only 8 days with three entries in the muster rolls. Balaram Sisa was issued job card no

2397 for 30-day work, but was offered work for only 5 days. Hagu Hemendru was issued job card no 2360 for 58-day work, but was offered work for only 6 days.-------- Govt mulls farmland companies http://www.financialexpress.com/fe_full_story.php?content_id=166485 ASHOK B SHARMA Posted online : Friday, June 08, 2007 at 0000 hours IST NEW DELHI, JUN 7: After toying with the concept of contract farming, the Union agriculture ministry is now planning to promote land share companies. This concept is quite new, where farmers' land can be considered as an equity in the company. The farmers can form a company of their own in the process and if they

need any capital they can invite investments from any processing company. At present land share companies do exist, even though there is a legal framework for formation of producer companies. According to this new concept of land share companies, farmers from any specified village or a cluster of villages can become shareholders in proportion to their size of holdings. In this case the land would be lease out to the company and the farmer would receive a share in the profit of the company. At the same time, he can lease in land including his own land from the company for cultivation for a fixed rent. A farmer thus can benefit from farming and as well as share in the agro-processing unit. The policymakers feel that such participatory land share companies would accelerate the pace of agricultural growth and increase farmers' income. However, there is a fear that the farmer may be alienated from his land in case

the company suffers a loss of liquidation. Keeping in view this apprehension, the government is planning some safeguard mechanisms According to a proposal access to shares in the land share company should be largely restricted to farmers and up to 25% of the paid up capital of the company can be d to in cash by others, including an agro-processing unit or a trading company. The land share company would operate on commercial basis and the management should be vested in an elected board of directors. Voting rights should be on the basis of cooperative principles - one member, one vote, irrespective of the value of share of each member. Farmer's sons or descendants can inherit the shares in the company. A farmer can sell his share to other farmers, but the shares should not be traded through public issue as there may be risk of takeover by corporate houses or other

entities. In case of liquidation of the company, the shareholders, particularly the farmers and tribals would get back their land rights. The liability of the company should be met by disposing off non-land assets. The government feels that the concept of the participatory land share company which is a midway between contract farming and direct corporate forming can ensure faster growth in the farm sector and increase farmers’ income. At present there are not many cases of direct corporate farming in the country. There are tea companies. The ITC has been traditionally growing tobacco in Andhra Pradesh and Pepsico has recently started growing potatoes, tomatoes, chilli and rice in Punjab, Maharashtra, Karnataka and West Bengal. The Mittals, in collaboration with the UK bank Rothschild, have started cultivating several crops in a big way. In 2002, the Tamil Nadu government initiated the programme of

leasing out wastelands to corporates for 30 years for growing commercial crops like cotton, flowers, fruits and vegetables and spices. The Gujarat government has also leased out wastelands to corporate houses for cultivation up to 2000 acre for 20 years. - Rs 19.5 cr sought for co-op schemes http://www.financialexpress.com/fe_full_story.php?content_id=166487 ASHOK B SHARMA Posted online : Friday, June 08, 2007 at 0000 hours IST NEW DELHI, JUN 7: The National Cooperative Development Corporation (NCDC) has chalked out a programme of Rs.19, 640 crore for various cooperative development schemes in the country

during 11th Plan. An outlay of Rs. 2000 crore has been approved for the programme activities for the current financial year. The Union agriculture minister, Sharad Pawar presiding over the 64th Meeting of the General Council of NCDC here today said that NCDC would continue to support and supplement the efforts of the state government for the development of cooperative activities in agriculture and allied sectors. The major thrust would be on marketing and distribution of inputs, consolidation of existing processing facilities by way of modernization or expansion, rehabilitation of sick and dormant units, development of weaker section activities like fisheries, dairy, handlooms, area development programme on integrated basis, creation of adequate infrastructural facilities like cold storages and other storages, development of horticulture, improving production and productivity of plantation crops and

agriculture credit, he added. The minister informed that the committee constituted by the general council to suggest measures for rehabilitation of sick processing cooperatives has since finalized its report and the agriculture ministry would give due consideration to its recommendations. Pawar commended NCDC for its spectacular performance in terms of record financial sanctions of Rs. 6253 crore and highest ever disbursals of Rs. 4009 crore during 2006-07.

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