30,000 farmers demand Hirakud dam water

Western Orissa is witnessing an upheaval. In the eye of the storm is the Hirakud dam. Over 300,000 farmers dependent on its water for irrigation are indignant that industries springing up around the dam are sucking away the water they had been waiting for. They are out, in increasing numbers, holding rallies and meetings. richard mahapatra and ranjan panda report from Hirakud and Bhubaneswar that the Naveen Patnaik government's industrialization drive has run into a wall of vehement protests
30,000 farmers demand Hirakud dam water
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Down to Earth
Orissa farmers make it clear that water from the Hirakud dam is for irrigation, not industry

Some 30,000 farmers from eight districts dependent on irrigation water from the Hirakud dam in Orissa's Sambalpur district stormed the reservoir area on November 6. A lot of them were from the dam's command areas where water is yet to be released through planned canal networks 50 years after it was commissioned. They were joined, however, by many who had got water from the dam. The police and the dam authorities, who had brushed aside warnings from the farmers, were confounded. "We could hardly see 150-200 people in early noon. We expected not more than 4,000 people in the worst of scenarios," said a police official posted to control the crowd's entry to the dam. Then it turned into a surge, though peaceful. The police lathicharged, injuring 50. "The farmers immediately came back keeping their promise of holding the protest peacefully.Otherwise it could have meant a huge loss of lives," says Ashok Pradhan of the Western Orissa Farmers Coordination Committee, a farmers' association involved in the ongoing protests against industrial use of Hirakud water. "I never saw the dam and its water, though I have spent my entire life with a promise that water from the dam would irrigate my field. After seeing the water, I am more determined that I am going to fight for it," says 50-something Bisikesan Mishra, a farmer from Sonepur district, some 80 km downstream of the dam on the Mahanadi. The promise of dam water for the district is yet to materialize.

"The protest demonstrated the desperation of farmers over the availability of irrigation water from the dam, a major source for eight districts in the region. It has also spurred people to continue to fight," says Lingaraj, a farmers' leader based in Bargarh district, another area dependent on the dam water. The turnout at the rally has surprised everybody, even the key organizers. "To be honest we were also not sure about the participation as we didn't have resources to mobilize people beyond our immediate neighbourhood," says Pradhan. Elders say the protest, marked by posters and public meetings, was bigger than the anti-dam protests during the early 1950s. "In Orissa where industrialization has become a development buzzword, protests by farmers are treated as stray incidents engineered either by social activists or by political parties. But the current demonstration, and its sheer size, have brought out a major fact there is a genuine deprivation that people want to protest against," says Priya Ranjan Sahoo, a Sambalpur-based correspondent with a national daily.

An uneasy calm prevails in Talab village, near the dam. The village is where a major canal network, the Sason canal, originates. It irrigates 24,280 hectares (ha), benefiting 60,000 households solely dependent on agriculture. From the same location water-guzzling industries are lifting water from the reservoir. Jogesh Bhoi, the 32-year-old president of the local pani panchayat formed to manage the canal, is restless. "For the past five years there has been a war going on here for getting enough water in the canal. The war has reached a decisive phase. We are not sure what consequences it would have but we are firm on getting water," he says. So 10 days after the massive protest, the villagers along with others erected a 16-foot-long wall right above an underground pipe laid by Vedanta Aluminium to take water from the reservoir for its smelter located far away.

The protesting farmers have named the wall Chasi Rekha (farmers' demarcator). From here nobody except farmers can take water from the reservoir. The company has temporarily abandoned the site; the government has maintained a convenient silence on the issue. But it is a flashpoint with the potential of a major flare-up in the Hirakud basin.

On December 2, Hindalco, an aluminium company, started laying pipes for its second water lift-off plant from the reservoir. A massive protest from farmers followed and the work had to be stopped. "The company doesn't have permission for the second pipeline," says Pradhan, adding, "This shows how defiant the companies are and how confident they are of government approval; they could spend money without even knowing whether water will be granted." On December 5, farmers near the Sason canal protested again on hearing that Bhushan Steel was preparing for a second pipeline to the reservoir. The situation is tense.

Irrigation vs industry
The wall has turned into a symbol of the ongoing protests by 300,000 farmers dependent on the dam for irrigation against the government's decision to allow a large number of industries to source water from the same reservoir (see graph Hirakud users). Farmers say there is already a reduction in irrigation from the reservoir. The allocation of water to upcoming industries will make the situation worse. Since industries were allowed water from the dam through a government order in 1990, there has been a gradual increase in industrial water use from the dam. But post-1997, the industrial water allocation has gone up six times, coinciding with the state's industrialization drive. In the Hirakud dam's command areas, agriculture sustains close to 90 per cent of the state population. "Either we win the fight or there is going to be an unheard-of situation," warns Murari Prasad Purohit, a resident of Sankarma village, downstream of Talab.

Down to Earth In the past one year, the protests have attracted huge public participation. On October 26, 2006, more than 20,000 farmers formed a 20 km-long human chain around the dam. This was the first sign that the farmers across the dam's command areas were emerging as a united force. In January this year, the farmers again assembled in nearby Bargarh town and demanded that the irrigation problems be fixed.

All this while, the state government did not respond positively. All it did was send a few intelligence officials to check whether political parties or Naxalites were involved in the farmers' agitation.

The latest surge in protests came from Talab. In June 2005, villagers read in the newspapers that water was already being released from the reservoir to the canal. But to their surprise the canal remained dry till July. Their crops were damaged. They approached the district magistrate, who visited the reservoir. It had dried out completely around the canal head, an unheard-of event in the dam's history. This triggered the inquest. Later they found out that a Bhushan Steel plant in the vicinity had built a 2 km-long kuchha road up to the reservoir to access its water off-take point. The off-take point is where the tributary Ib merges with the reservoir. This area also forms the canal head. With the road obstructing the flow of water from the Ib and the company lifting most water, the canal head was left dry.

The same situation prevailed in 2006. The local magistrate threatened to stop water to Bhushan Steel if the road was not distroyed. When Down To Earth visited the area recently, the road was still there, though under water. "In the summer the road will again stop the flow of the Ib water into the reservoir. This is how the Sason canal didn't get water," explains Bhibu Prasad Patnaik, convenor of the Sambalpur District Pani Panchayat coordination committee.

Interestingly, this is the same area where Vedanta is also setting up a water lift-off facility. The company's contractor was laying the pipes without any notice or permission from the dam authorities even though the area is a highly restricted point. The villagers stopped the work. A few other companies are also setting up water-lifting plants in the same area.Down to Earth "Industries have been setting up water-lifting plants very near the canal head, thus, affecting availability of water in the canal that operates on gravity principle," says Hemanta Rout, village forest president of Khinda, just beside the Bhushan Steel's water off-take plant.

The state government's own technical committee set up to examine the Vedanta and Hindalco's water off-take plants recommended in August 2007 that their locations would impact water availability for agriculture. The locations have, however, not been changed. Vedanta is now working on a second water pipeline along the existing one.

Damage control
The scale of the protests has left the government in a fix. A worried Chief Minister Naveen Patnaik is addressing the media four times a day. Not known for his appetite for discussing development issues in public, he convened 13 meetings with his cabinet and ministerial colleagues in a fortnight to talk about the fallout of the protests. For him it is both a personal and political crisis. Political because the protesting farmers came from 46 assembly constituencies and the state elections are just a year away. Personally, his industrialization drive now faces the severest criticism. "Even the Kalinganagar incident where the police had killed 13 tribal people protesting land acquisition did not deter the chief minister as much as the current," says an adviser to the chief minister.

Immediately after the November 6 rally, Patnaik issued a statement that not a single drop of water would be given to industrial units. Within a day he changed his statement, saying only "surplus" water from the dam would be given to the industries. Next he promised to raise the height of the dam to increase water and also to desilt the dam. He sent four cabinet ministers with these proposals to talk to the agitating farmers. The ministers stayed for a few days in Sambalpur but none of the farmers agreed to meet them. They have rejected all suggestions of the chief minister as "musings of a mad man", citing the water resources department's reports and assessments on why the dam could not be desilted or its height increased.

The farmers' association wants a few demands to be met before any discussion with the government. "First, the government should give an assurance that the promised irrigation under the original plan of the dam should be made available," says Pradhan. This means another 40,470 ha have to be linked to the dam's irrigation canal network. This is a gigantic task given that the dam has not been able to reach water regularly to the 215,655 ha currently irrigated. The government's own assessment shows that of the areas served by the existing irrigation network, 8,090 ha no more get water due to silting and damage to the canal network.

"Our village is right beneath the dam and beside the main canal. Despite this the areas irrigated by the canal have reduced by 280 ha in the past 10 years. We see further reduction as water is now being diverted to industries," says Shyam Lal Bhoi, the president of the Talab village farmers' association.

To pacify the farmers, the government has ordered its officials to plan the canal network needed to reach the entire command area as planned originally. Local water resource offices do not have the original plans. "Overnight we have been told to lay out the canal network. It is impossible. The existing network is also in ruins," says a tehsil office surveyor in Sambalpur. It is a similar situation in Sonepur, Bargarh and Jharsuguda districts. "Officials are taking it very casually as they know the order is for public consumption rather than any serious attempt to reach irrigation water," says another official.

In another twist, on November 26 the chief minister met farmers' "representatives" in Bhubaneswar.He addressed them in Sambalpuri, reading out from a note in Roman script, and declared a Rs 200-crore "package" for renovation of the canal network in Hirakud. Going by reports in local media, the "farmers' representatives" were brought to Bhubaneswar by two mlas belonging to the ruling Biju Janata Dal. The "package" is, in fact, part of a proposed World Bank loan for the Orissa Water Sector Improvement project. "We don't know the farmers' representatives the chief minister spoke to. I think this is a ploy to split the farmers' association," says Lingaraj.

On the political front the chief minister is going through his worst ever crisis. The opposition Congress held a mamoth meeting of 40,000 farmers in Sambalpur on December 2. The party declared it would reconsider all industrial water allocation in the state if elected to power. The chief minister has been ridiculed by his cabinet colleagues for his "immature" promises tarnishing the credibility of the government. The opposition parties remind him of his promise at every public meeting and in the legislative assembly.

"He should deliver his promise of not giving water to industries. Then we will resume business with the government," says J B Patnaik, the leader of the opposition. After failing to conduct business in the assembly for seven days, the government declared the winter session over.

Pressure Inc
The government is also under tremendous pressure from the industrial lobby not to cancel water allocation to industries from the dam since it could impact their operations in areas surrounding other dams in the state as well. The state government has signed mous worth Rs 300,000 crore with industry in the past few years, mostly to mine and use the state's vast mineral resources. It attracted business investments citing abundant water and mineral resources in the state. Within a day of the chief minister's assurance to farmers on water allocation, industrial houses began meeting government officials to get a sense of the situation. "The pressure is so high on the chief minister that he discusses the Hirakud issue in private conversations with his cabinet colleagues instead of cabinet meetings," says a senior government official.

Down to EarthThe Confederation of Indian Industry (cii) vice-president, S K Mohapatra, suggests, "We should go for a proper assessment of water required for agriculture and industries." cii is coming out with the same argument that the government has been giving for the massive industrialization in the state--wealth generation for development. "If one calculates, the water required for industries will not cross 5 per cent of the state's total water reserve. However, on returns, the industries trigger 85 per cent of the wealth generation," says Mohapatra.

Arcer Mittal, a major investor in the state, has declared it will have its own reservoir. In fact, this is something the state has been encouraging under its new industrial policy--the government has been considering allocating areas around the Hirakud and other reservoirs where private companies can build water enclosures. Among the key issues, the technical committee was to "suggest technically feasible and practical ways by which industries drawing water for (sic) the reservoir can contribute to the creation of additional storage facilities in the reservoir/on the fringe of the reservoir." This does not make a case for not using the Hirakud water for industries.

The state water resources principal secretary Aurobinda Behera says there is no compulsion for the state government to give water to industries under various agreements. "The government will give water to industries only after taking care of the irrigation and drinking water needs. After this we have a surplus of 10 per cent water in the reservoir. That is meant for industries. In this case also we have no legal compulsion to give water to industries. I don't feel farmers' apprehension of water shortage is valid," says Behera.

Farmers are not buying these assurances. In Talab their organizations are planning the next level of agitation. "The government makes people militant by not listening to them when they are peaceful," says Dillip Padhi of the Hirakhanda Nagaraika Parishada, a citizens' association in Sambalpur. In the next two months as the farmers sow the rabi crops, any spark provided by a dip in irrigation water can flare up the situation. The sharp polarization between farmers and industries over water use is worrisome. The wall demarcating this in Talab is a stark reminder.

Down to EarthThe Hirakud reservoir cannot provide water for both irrigation and industries

Farmers say they are not getting enough water for irrigation. The government claims surplus water in the Hirakud dam. Why the contradiction? The answer lies in the dam's history, its reduced storage capacity and water inflow, and the changed cropping pattern in the reservoir's command area.

Dam planners in the early 1940s did not foresee these changes, while today's policy-makers remain blind to them. "It is a fight of perceptions without any objective evaluation of the dam's capacity. There are enough indicators that water in the dam is not as it is made out to be," says Karunakar Supakar, former chief engineer of the Hirakud dam.

To begin with, the Hirakud irrigation system is one of the most inefficient irrigation systems in India.Down to Earth A study, titled 'Tail Enders and Other Deprived in the Canal Water Distribution', carried out by the planning commission in 2003 found that 80 per cent of the tail area in the Hirakud command system did not get water for irrigation. "Head-reach farmers could irrigate 100 per cent of their land, but only 35 per cent villages in the middle-reach were irrigated, in the tail-end areas water reached to only 18 per cent of the designated land," the report stated. In the current protests over the Hirakud water, all these three categories of users are participating. Even farmers cultivating close to the dam area say they are not getting enough water. While the head-reach farmers feel threatened by diversion of water to industries, the other two categories, facing acute water scarcity, feel their agriculture would be completely destroyed.

The dam became functional in 1957 with the prime objectives of flood control in the Mahanadi delta, irrigation to the famine- and drought-ravaged western Orissa districts and power production. It was not meant to provide water to industries. However, since it is located around a major mineral belt--the Ib valley has one of the largest coal deposits in Asia--from the day it was commissioned, industries started mushrooming around the dam, hoping for quick access to water.

While the demand from industry is increasing, the dam's storage capacity is decreasing. A sedimentation study conducted by the Central Water Commission using remote-sensing technique in 1995 showed that its capacity for usable amount of water was reduced from 4.72 million acre feet (1.22 million litre) to 4 million acre feet since commissioning. The state's technical committee found that at this rate of sedimentation, the usable storage capacity of the reservoir in 2007 would be 3.77 million acre feet, a 20.12 per cent loss in storage over 50 years. In 1990, for the first time the irrigation department (now the Department of Water Resources) earmarked 0.350 million acre feet a year for industrial use (see graph: Hirakud users). This decision was made on the presumption that the reservoir had a usable storage capacity of 4.72 million acre feet, but the capacity has been falling all these years.

Water inflow to the reservoir has also come down drastically. Several studies, both by government agencies and independent technical experts, show this. A retired chief engineer of Orissa, Bishnu Prasad Das, estimates that by 2025 inflow to the reservoir will fall to 8-10 million acre feet. To be functional the dam needs at least 15 million acre feet of water. According to the dam authorities' figures, the minimum flow to the reservoir was supposed to be 25 million acre feet. But by 2000, it came down to a precarious 16 million acre feet. In 1965, 1966, 1979, 1987, 1996, 1997, 2000, 2002 and 2004 the water inflow to the reservoir was in the range of 9-16 million acre feet.

Why is this happening? Over 90 per cent of Hirakud's catchment area lies in Chhattisgarh, which has constructed five major and medium dams on the Mahanadi and its tributaries upstream of the Hirakud reservoir in the past 50 years. According to Das's estimate, water flow to the reservoir from Chhattisgarh is falling at a rate of 5 per cent a decade. The state technical committee also reported less inflow to the reservoir during the monsoon period (see table: Shrunk reservoir). Orissa does not have a water-sharing agreement with Chhattisgarh, but now it is raising the issue at several fora.

Even cultivation in the dam's command area has shifted to water-intensive paddy. Among rabi crops, the area under paddy cultivation has almost doubled (see table: Thirsty crops). So today the average withdrawal for irrigation in the non-monsoon season has increased to 1.364 million acre feet from 1.25 million acre feet between 1967-68 and 1981-82.

But in terms of area, the government is yet to deliver irrigation water to the promised 230,670 ha, which is already 15 per cent less than the original target of 271,950 ha. At present, the Hirakud water is irrigating 215,655 ha. Keeping both farmers and industry happy is a near-impossible task.
The challenge of development lies in balancing competing water demands

Hirakud is only the tip of the iceberg. Across India, industrial demand for water is set to grow exponentially. If this demand is not carefully planned, water will become the biggest point of conflict between industry and the people who currently use this water. In the industrialized world, industry and urban households use over 70 per cent of the water resources, while agriculture gets 30 per cent. In traditional water economies like India, the reverse is true: agriculture consumes over 70 per cent and industry and urban areas the rest.

The transition towards the industrial economy can thinly stretch water resources. This is what is happening in Orissa. In the past seven years, 70 industries were allocated water from various river basins in the state. Since the Brahmani has been extensively exploited, the Mahanadi has emerged as the next big source.Down to Earth Half the upcoming industries in the state are in the Mahanadi basin. Within the Mahanadi, the major burden of meeting water demand--31.44 per cent--has fallen on the Hirakud reservoir (see graph: Claiming Hirakud water).

Even before it could meet its original irrigation target, the Hirakud dam is being exploited to provide water to industries. In the past decade, 27 major industries around the dam have been given permission to draw water from it. Twelve of these are already using its water, while the rest are setting up their plants (see table: Water-guzzling industries). Invariably, all these industries are water-intensive: 22 are sponge iron plants, one power plant, two big aluminium units and one steel and one iron factory. In addition to these, the recently approved mega power plant of Reliance will get water from the dam and the Mittal steel plant has been given in-principle permission.

This as an alarming situation for farmers. The dam will have to supply about 1,170 million litres of water every day to industries proposed in Sambalpur and Jharsuguda. The Reliance plant, proposed at Hirma, will draw another 1,468 million litres. "One cusec of water per day (2.5 million litres) can irrigate 40 ha.Down to Earth This means a major loss of irrigation if all industries are given water from the dam," says Lingaraj, basing his estimate on the current irrigation profile in command areas.

Blind facilitator?
The state government, eager to attract investment, has not only allowed industries to draw water from the existing irrigation projects but also given them the incentive of low water charges. Industries in Orissa are getting water at half the price the farmers are charged if the water is sourced from government facilities like the Hirakud reservoir.

Ever since the state water resources department formed a committee to monitor distribution of water to industries in April 1997, industrial allocation from rivers and reservoirs has shot up--by 2.5 times in just six years. According to the government's statement in the assembly on February 20, 2006, industries and mining companies have been allowed to withdraw 871 billion litres of water in a year. This is what we know. What about industries using groundwater? No one is keeping a tab on how much water they pump up (see box: Unaccounted for groundwater).

And the demand is only going to go up. In the past five years, the state government has signed agreements with 66 industries, most of them steel manufacturers. Projects worth Rs 300,000 crore are likely to be implemented in Orissa in five to seven years, a majority of them mining and mineral related. Industries are flocking to Orissa because it is mineral-rich and its per capita water availability of 9,203 litres a day is impressive in comparison to the national average of 4,986 litres.

Impressive it is, but not enough.The current spate of industrialization needs more than this water. Consider the scale of water use: in 2002-2003, Orissa produced 52.21 million tonnes of coal, using 10 billion litres of water, according to the Industrial Development Corporation of Orissa. This is 50 times the total urban water supply in the state. How much will the new projects guzzle? The proposed production of steel, for instance, will require 1.2 billion litres of water every year. This is more than five times the total urban water supply, which is mostly sourced from the state's 11 rivers.

Down to EarthAccording a report by the state water resource department, by 2051 the Brahmani river system will have to import 2,288.47 billion litres from the Mahanadi to meet growing demands. The Mahanadi's water needs for industrial use will double by then. So it is doubtful that Orissa will be able to meet water supply committed to upcoming industries.

It is also important to note that industry not only uses water but also discharges waste, degrading available resources. Orissa's high-level technical committee states that the industries should return 80 per cent of the water they used after treatment. But how diligently industries follow pollution guidelines is anybody's guess. But the state government is playing the role of a blind facilitator. An official note on industries' water needs shows that new industrial units will require 6.22 billion litres of water per day in the next five years. This much of water can support 60 cities the size of Dhanbad. Of this, 3.52 billion litres a day is allocated or recommended and proposals for 2.34 billion litres are under consideration.

Clueless
Now contrast this with the state's own assessment of agricultural and irrigation needs. The state had, going by the water resources department data, 6.59 million ha of cultivable land in 2005, of which 5.9 million ha had the potential for irrigation. Only 2.65 million ha could be irrigated. In the latest economic survey, surprisingly, all these figures have changed, for the worse. Cultivable land has come down to 6.17 million ha, of which 5 million ha has the potential for irrigation. Only 2.73 million ha is being irrigated. Cultivable land to the tune of four lakh ha just vanished from the government's estimate.

Down to EarthInterestingly, in an assembly statement on November 23, 2006, the chief minister put the total irrigated areas at 2.16 million ha. "There is confusion over the basic irrigation data. One thing is clear that the state needs irrigation desperately; 40 per cent more. Industrial priority in water use from existing sources is not understandable," says Barendra Krushna Dhala, an economist. The government's argument is Orissa needs economic development. Two million people in the state are unemployed and another 2 million underemployed. Will mining and industries change this? The proposed investment in Orissa can create not more than 175,000 jobs. "Industry's economic contribution is so little that to make it a prominent sector would be asking for unprecedented growth in the sector. That is not attainable," says Vaidyanath Mishra, former state planning board deputy chairperson.

The ground reality is that Orissa is the only major state in the country where the percentage of population dependent on agriculture has increased, even when agricultural production has come down (see table: Dependence on farming). Nearly 85 per cent of its population lives in rural areas and most of them are dependent on agriculture and allied activities. Industry is marginal to the state economy. "Both on creation of employment and income generation, industries have failed," says Sudhir Patnaik, a social activist.

What is true for Orissa, is true for India. Water competition is leading to conflicts across the country. In 2005, for example, in two separate incidents in Rajasthan farmers were killed when they rioted against withdrawal of water from reservoirs and canal for distant cities. The water crisis is about the management of competing needs--the vast rural economies, which need water for their food and livelihood and the newer growth economies of modern and industrial India. But this is not possible without a clear assessment of industrial water need.

Currently, there is very little or conflicting data on the use of water by industries and its future demand. In its report of 1999, the Union Ministry of Water Resources estimated that industrial sector used 6 per cent of available freshwater use. As per a 2000 report of the Central Pollution Control Board, industry accounted for roughly 8 per cent of the water used in the county. The World Bank estimated this to be 13 per cent in early 2000. Given this lack of clarity, the reallocation of water--from agriculture or cities to industry--is done without policy direction.

Also, the use of water in industry is inefficient and wasteful. India can turn this challenge into an opportunity--leapfrog into a process of industrial growth that is water-efficient and, therefore, waste-reductive.
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