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Dow wants to pass Bhopal buck to India, letters show

This is a discussion on Dow wants to pass Bhopal buck to India, letters show within the RTI News & Discussion forums, part of the RTI News, Circulars and Decisions category; US multinational Dow Chemicals, facing a criminal suit over the 1984 Bhopal gas disaster, has been trying to get the Indian embassy in Washington to persuade the government to clean ...


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  #1  
Old 04-09-2007, 11:41 PM
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Dow wants to pass Bhopal buck to India, letters show

US multinational Dow Chemicals, facing a criminal suit over the 1984 Bhopal gas disaster, has been trying to get the Indian embassy in Washington to persuade the government to clean up the site of the erstwhile Union Carbide plant, according to information acquired after invoking the Right to Information (RTI) Act.

New Delhi, Delhi, India, 2007-04-09 19:45:02

US multinational Dow Chemicals, facing a criminal suit over the 1984 Bhopal gas disaster, has been trying to get the Indian embassy in Washington to persuade the government to clean up the site of the erstwhile Union Carbide plant, according to information acquired after invoking the Right to Information (RTI) Act.

The matter came to light last month after the Bhopal Gas Peedit Mahila Stationery and Karmachari Sangh, an association of survivors and activists, made use of the RTI act to seek copies of the letter from the Planning Commission.

The letter dated Nov 8, 2006 from Dow chairman and CEO Andrew Liveris to the Indian Ambassador to US, Ronen Sen, said: 'With support of local Indian CEOs and foundations, there is opportunity now for the Government of India to work closely with the state of Madhya Pradesh and the Indian industry to remediate the Bhopal site.

'This should take place expeditiously - beginning immediately with GoI officials and industry leaders meeting with the relevant cabinet secretary (sic) who has executive oversight for the remediation efforts,' the letter said.

At least 20,000 people were killed and several thousands were maimed for life due to the leak of poisonous methyl isocyanate (MIC) gas from the Union Carbide plant on Dec 2-3, 1984, termed as the worst industrial disaster in history.

Dow Chemicals took over the Union Carbide factory in 2001 but has since been evading its responsibility to clean up the area around the closed plant where toxic waste has continued to affect the health of the people living in the neighbourhood.

The letter further added that 'the GoI and the state government will need to work with the court overseeing site clean-up to assure that this effort will pass legal muster as the site's final remediation plan.'

The firm said: 'Leaders need to work with all ministries of the central government to ensure that their stated position is reflected in any (sic) and of GoI's statements, legal files, and dealings with the Indian court system.

'...Specifically, the GoI ministry of Chemicals and Fertilizers applied to the court in May 2005 to order Dow to pay a deposit of Rs.100 crore (Rs.1 billion) or approximately $22 million against environmental remediation costs.

'The ministry should now withdraw its application for a financial deposit against remediation costs. Certainly a withdrawal of the application would be positive, tangible demonstration that the GoI means,' the letter added.
Another letter retrieved using the RTI act finds that Tata group chief Ratan Tata had written to Planning Commission deputy chairman M.S. Ahluwalia supporting the cause of Dow.

'Dear Montek, Andrew Liveris of Dow sent me a copy of a letter that he sent to Ronen Sen, which I enclose for your information. I understand Vipul Shah of Dow India also intends to brief you on this next week,' said Tata's letter dated Nov 28, 2006.

'This is obviously a key aspect and I wanted your assessment on whether this is possible,' the letter added.

The Tata group has formally offered to take up the responsibility of cleaning up the site and pave the way for Dow's investments in India.

Dow wants to pass Bhopal buck to India, letters show - India PRwire
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Old 04-10-2007, 03:38 PM
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Billionaire Offer to Clean Bhopal Derided As Front for Chemical Firm

Quote:
There is one more article in this series. This was forwarded to me by my friend who is actively associated with the Bhopal Movement.
One of India's richest men has been lobbying for the Indian government to drop a court case against an American multinational to pay for the clean up costs of the world's worst chemical accident, according to letters obtained by campaigners.

The documents, acquired under India's right to information law, show industrialist Ratan Tata writing to ask whether the Indian government could "withdraw [an] application" to make Dow Chemicals pay $22m [£12m] as an initial deposit against "environmental remediation costs".

Dow owns Union Carbide, whose pesticide plant leaked deadly white gas killing thousands in Bhopal in 1984. The company claims it bears no liability for the site as it has since sold up and left India.

After an international outcry that the site had not been decontaminated more than 20 years on, the Indian government launched a legal case to recoup money from Dow in May 2005. Campaigners say there is evidence that the disused plant still has 170 tonnes of toxic waste leaching into the soil and poisoning groundwater.

Studies show that 57 out of 120 children who grew up near the abandoned plant suffered from cerebral palsy. More than 26,000 people still drink "dirty" water.

Mr Tata, who runs the £30bn Tata group, says his company could break the "dead lock" and fund a clean-up of the site.

A letter from Dow says it is "critical" the government of India drops its legal action and that the resolution of the issue must be seen as a "tangible, deliverable outcome" of a newly formed US-India business forum which Mr Tata oversees.

Tata group said its chairman's suggestions were "totally independent of the issues being addressed in the courts. It is imperative some initiative be undertaken to clean the site."

Campaigners said Dow Chemicals was using an "Indian front company to do its dirty work".

By Guardian Unlimited © Copyright Guardian Newspapers 2006
Published: 4/9/2007

Billionaire Offer to Clean Bhopal Derided As Front for Chemical Firm
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Old 04-10-2007, 07:50 PM
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Thank you maneesh for furnishing an amplified information on the role of Tatas in this sad saga. Now Ratan Tata should explain to the nation at large, the rationale for prevailing upon the GOI to withdraw a $22m suit and also the quidproquo for the Tata group in the process. That is the least he could do to convince the nation that he is on the right track.
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Old 04-10-2007, 09:35 PM
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I guess the thanx is much more deserved by my activist friendh Shalini Sharma, India coordinator for "Students for Bhopal (SFB) ", a global association of people fighting for justice for the victims of Bhopal gas tragedy
Kudos to her and all the people fighting for the cause.

Last edited by maneesh; 04-10-2007 at 09:36 PM.
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Old 04-11-2007, 07:01 AM
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Maneesh,
It looks like you have forgotten to mention that she is also a member of our forum here. I wish her and her team all the best in their fight for such a noble cause.
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Old 04-11-2007, 03:56 PM
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You are right, i just checked. Thanx
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Old 06-10-2007, 08:58 AM
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Re: Dow wants to pass Bhopal buck to India, letters show

BHOPAL GAS TRAGEDY: ONE OF THE SPEAKERS AT THE PRESS MEET SAID THAT THE PLIGHT OF THE PEOPLE IN NANDIGRAM IS SIMILAR TO THE VICTIMS OF THE TRAGEDY

Gas tragedy survivors oppose Dow Chemical’s entry in Bengal


Kolkata, June 5: A delegation comprising members of different organisations seeking justice for the victims of the Bhopal gas tragedy said that it would not allow Dow Chemical to set up base in the proposed chemical hub in West Bengal till the latter accepts its pending liabilities towards the victims of the tragedy.
Dow Chemical is the parent company of Union Carbide, which owned the chemical factory in Bhopal from where the leak of toxic gases in December 1984 killed over 20,000 and injured several others.

Speaking during a press meet today, Rashida Bee, a member of the Bhopal Gas Peedit Mahila Stationary Karmchari Sangh, said that the plight of the people in Nandigram is similar to that of the victims of the tragedy. “The world has learnt its lesson from the biggest industrial tragedy, only in India we are committing the same mistakes again.”


When asked about the future course of action, Satinath Sarangi, a member of the Bhopal Group for Information and Action, said that it was going to use the Right to Information Act (RTI) as a “weapon” to generate awareness among the people. “We will oppose any effort on the part of the West Bengal government to let Dow Chemical come to the state,” said Sarangi.

Representatives of the Bhopal Survivors’ Organisations said that they are going to form an all-India council and send a delegation to the West Bengal government.

Sarangi told the media that in accordance with the “polluter pays” principle, Dow Chemical is legally liable to pay for the clean up of chemical waste and pay compensation to the victims of the tragedy. He informed the media that the Indian government has sought Rs 100 crore from Dow Chemical as advance for cleaning up the hazardous waste from and around the Bhopal factory. However, the company, through its counsel, had told the Madhya Pradesh High Court, which is hearing the case, that it was not bound by its ruling as it is a USA-based company.

Sarangi said that the US Security and Exchange Commission had penalised Dow Chemical for financial irregularities, including its attempt to bribe Indian officials. He alleged that the motive behind the bribe was to introduce Dursban, an insecticide banned in the US for its harmful effects, in the Indian market. The CBI is also investigating the case.

Yesterday 21 members of the Bhopal Survivors’ Organisations visited two areas of Nandigram and talked to the locals there.

Gas tragedy survivors oppose Dow Chemical’s entry in Bengal
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Old 07-01-2007, 09:48 AM
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Re: Dow wants to pass Bhopal buck to India, letters show

Govt tries to cleanse Dow investment of Bhopal stain

</ARTTITLE>
NEW DELHI: In a bid to clear Dow Chemicals, the American giant that took over Union Carbide in 2001, of civil liabilities in the Bhopal gas tragedy — said to be the worst industrial disaster in the world — the Centre is making a concerted effort for an out-of-court settlement with it.

The victims of the tragedy may find this hard to believe, but documents with TOI show that the PMO, backed by finance and industry ministers and the vice chairman of the Planning Commission are trying to find ways to clear Dow Chemicals of any legal liability, so that the company agrees to invest in India.

Key issues of the 1984 disaster remain unresolved. While direct victims of the poisonous gas leak have been compensated, toxic waste from the plant in a 7-hectare area is said to have contaminated Bhopal’s ground water.

While the case is going on at the Jabalpur bench of the Madhya Pradesh HC, Union Carbide was bought over by Dow. With that, it would have taken over Carbide’s civil liability. In the Jabalpur court case it is named as one of the respondents and the chemicals and fertiliser ministry has raised a demand of Rs 100 crore from Dow to clean up the contaminated factory site in Bhopal.

Faced with this, as well as the prospect of higher demands if the court holds it responsible for the ground water contamination, Dow first offered in 2005 to invest in a giant petrochemicals hub, covering 250 sq km, and then showed its reluctance to do so, citing the potential risk to its investment should liability come on it from the Bhopal case.

This is where, it appears, government machinery got whirring to allay Dow’s fears by seeking to reach an out-of-court settlement and thus pave the way for the investment in the petrochemicals hub. Documents acquired through an RTI application show a series of rapid-fire moves.

Govt tries to cleanse Dow investment of Bhopal stain-India-The Times of India
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Old 07-01-2007, 09:53 AM
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Re: Dow wants to pass Bhopal buck to India, letters show

If settled out of court, Dow won't have any liability</ARTTITLE>

NEW DELHI: Documents in TOI's possession show that an offer by Ratan Tata, who heads the Indo-US business council, to take up ‘remediation' - in plain words, cleaning up - of the Union Carbide plant site has been picked up by the PMO and top ministries to find a way out for Dow.

The problem with this, say activists, is that once settled out of court, Dow will no longer be responsible for compensating for the water contamination.

In other words, while the site might be cleaned up with the help of Tata and other industrialists, the indirect victims of Carbide's cavalier factory management might be left high and dry. What do the documents show? They consist of several notes generated by the PMO, finance and industry ministers, the Planning Commission and the Cabinet Secretary.

Commerce and industry minister Kamal Nath wrote to the PMO in February 2007, ‘‘While I would not like to comment on whether Dow Chemicals has a legal responsibility or not, as it is a matter for courts to decide, with a view to sending an appropriate signal to Dow Chemicals, which is exploring investing substantially in India, I would urge that a group under the chairmanship of the Cabinet Secretary be formed to look into the matter in a holistic manner.''

He added,” In a similar manner as was done with respect to the Enron Corporation with respect to Dabhol Power Corporation.''

In the Dabhol case, an out-of-court settlement was reached with its now defunct promoter, Enron. Deputy Chairman of Planning Commission Montek Singh Ahluwalia wrote to the PM, Finance Minister P Chidambaram and Kamal Nath in December 2006:

‘‘Ministry of Industry has granted foreign collaboration approval for a technical collaboration between Dow and Reliance. This was greatly appreciated as a signal that Dow was not blacklisted.

‘‘However, they have sought a statement from GoI in the court clarifying that GoI does not regard Dow as legally responsible for liabilities of Union Carbide. Similarly Shri Ratan Tata has written to the FM suggesting that we should launch an industry led intiative. Dow Chemicals indicated that they would be willing to contribute to such an effort voluntarily, but not under a cloud of legal liability.''

Ahluwalia goes on to advise: ‘‘Cabinet secretary should be asked to try and resolve the issue in an inter-ministerial meeting including Ratan Tata or his representative.''

Earlier, Tata wrote to Ahluwalia in November 2006: ‘‘Dow has mentioned in their letter that it is critical for them to have the ministry of chemicals and fertilisers withdraw their application for a financial deposit by Dow against remediation costs, as that application implies that the Government of India views Dow as liable in the Bhopal Gas Disaster case. This is obviously a key aspect and I want your assessment as to whether it is possible.''

He also wrote to Chidambaram. The finance minister concurred with Tata while writing in December 2006 to PMO: ‘‘I think we should accept this offer and constitute a Site Remediation Trust under the chairmanship of Shri Ratan Tata and including executives from the private sector.''

Dow, in the meanwhile, was in touch with top officials in PMO, in which they got the advice to consult top lawyer and Congress spokesman Abhishek Manu Singhvi. Documents show the legal advice given by Singhvi saying that Dow could not be held responsible for the disaster and also not be held liable for any alleged contamination and consequent cleaning up of the Bhopal site. This advice forms part of the PMO file.

When contacted on the advice given, Singhvi said, ‘‘I have been appearing as a senior counsel in this case for over 18 months. I was engaged by a leading solicitor firm. I am not in any manner engaged in any matter of the case except appearing at the Jabalpur High Court case and advising Dow on various legal aspects involved in those proceedings. I am not aware of anything else.''

Eventually, in April 2007, the cabinet secretary put up a note that says: ‘‘It stands to reason that instead of continuing to agitate these issues (Dow's legal liability) in court for a protracted period, due consideration should be given to the prospect of settling these issues appropriately. An important aim is to remove uncertainties and pave the way for promoting investments in the sector.''

It adds that instead of leaving the matter to be settled by the court, the government should reconstitute the existing group of ministers (overseeing the work at Bhopal site) with an appropriate mandate.

If settled out of court, Dow won't have any liability-India-The Times of India
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Old 05-13-2008, 07:17 AM
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Re: Dow wants to pass Bhopal buck to India, letters show

As reported by Sreelatha Menon in rediff.com on 13 May 2008:
Law ministry shows thumbs down to Dow

Law ministry shows thumbs down to Dow

Dow Chemicals, which has been insisting that it was not liable to clean up the toxic dirt left by its Indian subsidiary Union Carbide, does not seem to have any support for its position from the Union law ministry.

An internal note obtained by activists from the Prime Minister's Office and dated February 2 this year says that the Ministry of Law believes that 'irrespective of the manner in which Union Carbide has merged or has been acquired by Dow, if there is any legal liability it would have to be borne by Dow Chemicals.'

The note also puts a question mark on the prospects for future investments by US-based Dow in India.

The note referring to comments of the law ministry in a Cabinet note prepared by the department of chemicals on Dow's legal liabilities in Bhopal says: "It has categorically stated that in view of the pendency of the writ petition in Madhya Pradesh High Court and the legal position stated above, it cannot be said that the investment proposed to be made by Dow Chemicals will be immune from the orders of the court."

This is with reference to the proposal of Dow Chemicals to invest $1 billion in India. This document contradicts Dow's stated position to its shareholders, and clearly outlines the risks faced by Dow Chemical's investments in India.

The document was unearthed on May 8, 2008, through Right to Information from the PMO by survivors organisations of 1984 Union Carbide disaster in Bhopal.

In 2005, Dow began intense lobbying for legal immunity against Carbide's liabilities prompted by a May 2005 application by the Ministry of Chemicals in a case relating to toxic waste clean-up in the Madhya Pradesh High Court.

The application sought Rs 100 crore ($25 million) from Dow towards clean-up costs. Dow claims that its 100 per cent subsidiary, Union Carbide, is a separate legal entity with its own system of liability management, and that Dow has inherited only assets and not Carbide's liabilities.

Responding to requests from Dow and its allies, the prime minister instructed the chemicals ministry to prepare a note on Dow's legal liabilities in consultation with the law ministry.

While the actual note prepared by chemical and law ministries is not available, the internal briefing note prepared by PMO director Shaleen Kabra dismisses any possibility for immunity.

Bhopal activists said they will bring the law ministry's opinion to the notice of Dow shareholders at the company's annual general meeting at Midland, Michigan, on May 15. The company is keeping its shareholders in the dark about its business in India, said Rachna Dhingra of the International Campaign for Justice in Bhopal, an organisation which has been protesting in Delhi since last month seeking justice for victims of the 1984 Bhopal tragedy.

Giving a background for the preparation of the Cabinet note mentioned above, the note marked 'internal' says: Department of chemicals and petrochemicals sent a Cabinet note on legal liabilities of Dow Chemicals for environmental remediation of plant site.

The matter was referred to the department on the basis of deliberations of Trade and Economic Relations Committee in the PMO in which it was noted that Dow Chemicals was proposing an investment of $1 billion in India and was seeking an assurance from India that their executives should be able to visit India freely to take care of their business interests.

Referring to these, the note says: At the same time, the ministry has mentioned that the company's executives have been moving around in the country freely and taking care of their business interests.

According to the note, the department of chemicals has suggested that the orders of the high court be awaited since the matter is sub-judice.

A Dow India spokesperson, when asked to comment, said reaction was awaited from the main Dow Chemicals office in the US.

The note obtained from the PMO has comments from Prime Minister Manmohan Singh saying that while his office need not give any comments on the Cabinet note, it should be sent to industry ministry, finance ministry and Planning Commission for their comments.

Commerce Minister Kamal Nath, Finance Minister P Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia had earlier written letters to the PMO recommending the case of Dow Chemicals for consideration with reference to its legal liabilities in the Bhopal case.

"The Industry and Finance Ministers and Planning Commission's Montek Singh Ahluwalia are the ones to watch out because they endorsed Dow's demand for immunity in 2006," said Satinath Sarangi of Bhopal Group for Information and Action.

The revelations could have ramifications on the joint venture agreement between Dow Chemicals and Gujarat Alkalies and Chemicals Ltd last April to set up a 200,000-tonnes-per-annum chloromethanes factory in Dahej, Gujarat.

This is Dow's first major investment announcement since its acquisition of Carbide. Dow has shied away from large investments in India, both because of its perceived risks and the hostile reaction to its entry from various quarters.

In January this year, Dow Chemical's attempts to construct a Rs 300-crore R&D facility in Chakan, Pune, was stalled after villagers dug up approach roads to the construction site. The villagers have forced the government to rethink the permission given for Dow's proposal, says Sarangi.

Meanwhile, Dow's attempts to forge alliances with the Indian Institutes of Technology have also run into rough weather. Citing Dow's mishandling of the Bhopal issues as a reason, students and teachers at six prestigious engineering institutes around the country have joined hands to bar the company from any truck with IIT.
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Old 05-22-2008, 08:35 AM
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Re: Dow wants to pass Bhopal buck to India, letters show

As reported by Tarique in indianmuslims.info on 21 May 2008:
40 Bhopal Gas Victims Chain Themselves to PM's Residence Seeking Justice | Indian Muslims

40 Bhopal Gas Victims Chain Themselves to PM's Residence Seeking Justice

Bhopal: Forty Bhopal survivors, including 15 children and 23 women, chained themselves to the fence around the Indian Prime Minister's residence in Race Course in New Delhi demanding speedy resolution of their demands. They are asking for legal action against Union Carbide and Dow, and an empowered Commission for rehabilitation of Bhopal victims.

Some such as 11-year old Yasmin Khan are among 50 Bhopalis who reached Delhi on March 28 last having walked 800 km from Bhopal. Survivors of the 1984 Union Carbide disaster and victims of water contamination from Bhopal have been on "dharna" (sit-in) in New Delhi for last 55 days. The first request for a meeting with the PM was sent in January last.

According to a Press release despite the long wait, and more than 3000 faxes that have flooded the Prime Minister's Office, (PMO), from more than 18 countries, the PMO has refused to give any time frame for resolution of the 23-year old legacy.

"Twenty three years is too long. This is a matter of our lives and liberty, and our children's health. We are not prepared to wait, and will do what it takes to ensure that the Prime Minister realizes that we, and not American corporations, are his priority," the survivor organizations said. On May 5, mothers, tired of waiting for the Prime Minister to respond, brought children born with congenital deformities to the Prime Minister's residence. More than 80 of them, including children and babies, were arrested by the police and later released.

The cause of the Bhopal survivors is being spear-headed by NGOs namely Bhopal Gas Peedit Mahila Stationery Karmachari Sangh, Bhopal Gas Peedit Mahila Purush Sangarsh Morcha and Bhopal Group for Information and Action.

According to estimates by the Centre for Rehabilitation Studies, a Madhya Pradesh Government agency, at least one gas victim succumbs to the long-term effects of the toxic gas every day. Other anecdotal evidence and community surveys are revealing that Bhopal's Generation Next is already suffering the hand-me-down effects of the poisonous gases, and the toxins still found in the groundwater.

The Bhopalis charged the Prime Minister for being personally insensitive to the plight of the victims and their children, and for breaking his promise. In April 2006, the Prime Minister had met a delegation of Bhopal "padayatris" (foot-marchers) and promised to do all within his power to rehabilitate them, and all within law to hold the corporations to account. Two years hence, even the simplest demand of clean water remains unfulfilled.

Meanwhile, rather than take legal action against Dow and Carbide, the Government has actively promoted its investments in India, and shielded the companies from legal fall-out relating to a host of cases including bribery and sale of confiscable goods. In 2007, Dow was fined by US financial regulator the Securities Exchange Commission for having bribed Indian agriculture ministry officials for expediting registration of three toxic pesticides. At least one of them is banned in the US. The Government has banned the sale of the illegally registered pesticides be revoked.

In another move, touted as an "encouraging signal" to Dow Chemical, the Government of India has cleared Dow's sale of Union Carbide's Unipol technology for Reliance Industries polypropylene plants in Jamnagar. Union Carbide is a proclaimed absconder since 1992 in a criminal case that has been filed by the Indian Government in the Chief Judicial Magistrate's court in Bhopal. Carbide was acquired by Dow Chemical in 2001, but Dow claims that it only acquired Carbide's assets and not its liabilities.

Not only has the PMO delayed justice in Bhopal, but it has also actively prevented Bhopalis from learning the reasons why. Bhopal survivor Hazra Bee, who filed a Right to Information request to inspect files on April 1, has not been given complete files till date. An inspection done on May 9 revealed that the PMO had wrongfully withheld information. This is an offence under the Act. The applicant has filed a complaint against the PMO with the Central Information Commission.

However, inspection of the incomplete file did reveal that the PMO was briefed of the fact that the Law Ministry had opined that Dow would have to pay up if Union Carbide was held liable, and that Dow's investments in India were not immune to court orders. Speaking through its allies in the Government, namely Union ministers Kamalnath & P. Chidambaram and Planning Commission vice chairman Montek Singh Ahluwalia, Dow has sought immunity from Carbide's liabilities in return for a promise of more than a $1 billion in investments.

An application filed on April 23 has also been stone-walled. The application sought details of the persons who met the Prime Minister over the last two months, and the time lapsed between when they sought a meeting, and when they were given an audience.

The Bhopal groups have said that they will not allow the Prime Minister to put off dealing with the Bhopal issue any longer, a release added.
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Old 05-23-2008, 11:43 AM
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Re: Dow wants to pass Bhopal buck to India, letters show

Great information karira, Your tireless work is making rtiindia a very useful resource
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Old 05-25-2008, 07:46 AM
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Re: Dow wants to pass Bhopal buck to India, letters show

As reported by Jayanta Roy Chowdhury in telegraphindia.com on 22 May 2008:
The Telegraph - Calcutta (Kolkata) | Nation | Ministers to fix Dow’s gas burden

Ministers to fix Dows gas burden

New Delhi, May 22: A group of ministers will decide if US-based Dow Chemical should be made to pay for the clean-up of Bhopals air and groundwater pollution, a fallout of the 1984 gas tragedy.

The Centre has decided to refer the matter to the group of ministers after the ministry of chemicals and fertilisers and the commerce ministry failed to agree on the subject.

The chemicals ministry has written to the Union cabinet that it is against letting Dow walk away without paying for the clean-up of the toxic waste left behind by the gas leak from Union Carbides Bhopal plant in December 1984.

Dow bought Union Carbide in 2001, 17 years after the gas killed an estimated 8,000 people and maimed tens of thousands, while the contaminants it left behind continue to endanger the health of 20,000 people through their drinking water and food.

However, the commerce ministry feels that allowing Dow to invest in India without burdening it with liability from a past with which it was not actually associated would send the right signal to US investors.

The chemicals ministrys stand is that the courts should fix corporate responsibility, and that since Dow had bought Union Carbide, the responsibility of the clean-up could be pinned on it under Indian corporate law.

It feels that a failure to fix responsibility would be a poor precedent for future global corporate take-overs that have a bearing on India.

An alternative proposal by industrialist Ratan Tata is not acceptable to the chemicals ministry, which represents the government in all legal cases relating to the gas tragedy.

Tata, co-chair of the Indo-US CEO Forum that has Dow president Andrew N. Liveris as a member, has proposed that Indian and US companies jointly set up a corpus to clean up the site. But the ministry says this goes against the principle of making the successor pay.

In response to a public interest litigation, Jabalpur High Court has already ordered Dow to deposit Rs 100 crore for the clean-up, and chemicals ministry officials say they support this. About 70 tonnes of poisonous residues have contaminated the soil and groundwater in the factorys neighbourhood, and penetrated vegetation and animal tissues.

There have also been demands for compensation to the 20,000 endangered people.

Dows official stance is that the plant was owned by Union Carbide India a joint venture between the US-based Union Carbide Corporation, the Indian government and private investors. Union Carbide sold its shares in Union Carbide India in 1994, seven years before Dow acquired it.

The plant is now controlled by the Madhya Pradesh government, and Union Carbide India has now been renamed Eveready Industries.

NGOs and associations representing the gas victims have been demanding that Dow pay for the environmental and health damage caused by reckless dumping of hazardous chemical wastes on the factory premises.

The NGOs accuse the Centre of being wishy-washy. Documents they have procured under the Right to Information Act appear to suggest that Union cabinet members would prefer a compromise that helps Dow invest in India.
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Old 05-30-2008, 07:37 AM
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