India's GVK buys Australian mines

19 September 2011 Last updated at 02:23 GMT Indian companies have been buying coal mines to feed plants at home and fuel India's growth Indian infrastructure giant GVK said it will pay $1.26bn (£802m) to buy a majority stake in coal assets owned by Australia's Hancock Group.

GVK will take a 79% stake in two mines and own a third, as well as a port and rail project, the company said in a statement.

The deal comes after months of negotiations that began in February.

Indian energy firms have been snapping up coal assets in other countries to supply their power plants.

'In-house supply'

Hyderabad-based GVK, controlled by Indian billionaire GV Krishna Reddy, owns airports, power plants and other infrastructure projects in India.

It said it will take a 79% stake in the Alpha and Alpha West coal mines in the Galilee Basin in Queensland, Australia.

The company will also have full ownership of Kevin's Corner coal mine and the rail and port project connecting the three mines.

Production is due to start in 2014 and is expected to bring in more than 30 million tons per year of thermal coal, according to GVK.

"This acquisition builds strong resource business for GVK," said Mr Reddy in a statement emailed to AFP news agency.

"We will now be able to increase the capacity of our coal power business with an assured in-house supply of raw material."

The company said that at full production the mines are expected to produce about 84 million tons per year.

India depends on coal for its power generation needs. Insufficient supplies at home have lead many companies to look to Africa, Indonesia and Australia for the necessary fuel.

Last year, Adani Enterprise bought coal assets from Australia's Linc Energy for $2.7bn.

India's high-profile conglomerates such as Tata and Reliance have also made purchases to supply coal to their power plants in recent years.

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The fight for India's water supply

12 September 2011 Last updated at 23:02 GMT By Shilpa Kannan BBC News, Delhi The last drop: If ground water levels in rural Rajasthan do not improve, these women could be waiting a long time

Surrounded by the rocky Aravalli hills, Rajasthan is one of India's driest states. Despite good rains this year, water has always been an issue here.

But the problem now is that beneath the lush, green, irrigated fields of north-western India, the groundwater is fast disappearing.

In Neemrana, about 150km (95 miles) from Delhi, this has been made worse by human intervention.

Situated on the national highway, this area is part of the industrial development under the Delhi-Mumbai industrial corridor.

The highway is dotted with industries including many water intensive breweries and bottlers.

The state government water board has labelled the district as 'most critical' in terms of ground water, which means the average rate of depletion is more than 0.4m per year.

Irrigating the future

Farmers were first to be affected.

Amar Singh: "Without water, my children and grandchildren have no future on this farm"

Amar Singh's family has been in the business of farming for generations.

His piece of land in Neemrana in Rajasthan is the only source of livelihood for his family.

But as the ground water level decreases, it's becoming harder and harder to get a good yield.

Mr Singh, 65, is worried.

"Water is everything for us. But this is dry land… water is scarce here," he says.

"The water is disappearing so fast that there'll no farmers left. Without water, my children and grandchildren have no future on this farm."

Groundwater is India's lifeline. More than 80% of rural water supply and farm irrigation comes from water sources below the land.

Farmers have been forced to switch to drought-resistant crops like millet

This is water that accumulates in natural cavities and layers of rocks and clay under the ground. This is usually from excess rain water and other surface water that seeps through.

This accumulated water can be just below the surface or deep underground and requires strong motors to pump it up to the surface.

When it rains heavily, these aquifers deep below the ground get fed. The entire area depends on it - leaving farmers reliant on technology to water their crops.

Using sprinkler systems and drip irrigation techniques, the farmers have reduced their consumption of water.

Many here have also switched to more water-efficient crops such as millet and vegetables like garlic, onion, green chillies and okra.

As the sprinklers system comes to life, cool water is sprayed all around Singh's fields. He and his wife check the 1.8m-tall (6ft) millet to see if it is ready for harvest.

Business assistant

Farmers here are getting a helping hand from a local industry that is equally dependent on the resource.

Drip irrigation - using tubes like these - is one way of cutting water consumption

With a brewery in the area, SABMiller India has funded the construction of five water recharge dams. These prevent the excessive run-off of water and help natural water recharge.

Since their construction, the company estimates the local ground water levels have gone up by 17m (56ft).

The company conducted extensive studies in the area to map the water availability. They found that losses through evaporation and run-off are very high in the rocky terrain. Their report showed the shallow aquifer and many community wells were completely dry.

"We have had to spend close to a year in identifying what the shape and form of that structure ought to be," says Meenakshi Sharma, sustainability vice-president for SABMiller.

Meenakshi Sharma at one of the water recharge dams funded by SABMiller

"That has involved the use of satellite data, GPS technology, remote sensing technology and also interactions with the surrounding communities who in their wisdom have noticed the particular points where water doesn't run off but gets percolated down."

But breweries themselves are a water-intensive industry and critics say the company is part of the problem.

"Water is one of the key ingredients of brewing and that's our interest in it," says Ms Sharma.

"Looming scarcity of water in many parts of the world where we are present may actually be a potential business risk for us. In this region... it could be a risk to the livelihoods of small and marginal farmer holders as well."

Water shortage

Two-thirds of Rajasthan is desert and it faces recurring droughts.

Raging thirst: Water is becoming and increasingly scarce commodity in Rajasthan

The government says nearly half the state's ground water zones fall into the "dark" category, where more than 85% of the ground water is developed for use. Many are over-exploited, being 100% developed.

The Neemrana area is categorised as 'most critical' - levels are dropping on average 0.4m per year.

In 2009, a Nasa study said parts of India are on track for severe water shortages.

Nasa's Gravity Recovery and Climate Experiment (GRACE) mission discovered that in the country's north-west, the water table is falling by about 4cm (1.6in) per year.

The scientists said that while they don't know the absolute volume of water in the northern Indian aquifers, they found evidence that the "current rates of water extraction are not sustainable".

Before any group can invest in sustainability programs, they need detailed data about the water balance in the area.

The ancient rulers of Rajasthan used to build step wells like this to store water

So a team of agro-engineers has been employed by the Confederation of Indian Industry (CII). Other than science, they are also relying on ancient knowledge that the region is famous for.

A team led by 33-year-old Vishnu Bhagwat Kelkar studies local step wells in the area.

Historically to combat the scarcity of water, rulers of Rajasthan used to build elaborate step wells or bawaris.

These are structures that store water. But their unique feature is the steps that descend gradually, making access to water easy - even when levels are low.

Mr Kelkar says they study water-bearing formations, look at seasonal changes, monitor different wells in the area and test the water quality.

Vishnu Bhagwat Kelkar is finding out if the ancient step wells have things to teach us

"Once we do that we can map the flow of the water and identify the aquifers. This data helps us determine what is the quantity of water available to the population... and how best to use it."

But these efforts are only a drop in the bucket. With 50% of the villages having no source of protected drinking water, India is a severely water-stressed economy.

And as the scarcity increases, competing demands for water only grow.

The limits to the right to use groundwater were tested recently in the Coca-Cola case in Kerala.

In February 2011, the southern Indian state of Kerala passed a law that will allow people to seek compensation from soft-drink giant Coca-Cola.

Their plant at Plachimada was shut down more than six years ago following a protracted legal battle and a sustained campaign by civil rights groups.

A child waits to fill his water jar from a communal tap

Environmental campaigners had accused the company's bottling operation in Palakkad district of causing a severe water shortage in the area.

Coca-Cola's Indian subsidiary - Hindustan Coca-Cola Beverages (HCCB) - strongly denied any wrongdoing.

At the time, the company in a statement said it was "disappointed" with the new legislation.

"This bill is devoid of facts, scientific data or any input from or consideration given to HCCB," it said.

While scarcity of water is a big reputational risk to companies, it is also a big financial risk to the entire community.

Environmentalists say efficient water management must be supported by stringent laws.

Dr N Janardhana Raju is an environmentalist at the Jawaharlal Nehru University in Delhi.

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If over extraction carries on, there is a risk of land subsidence”

End Quote Dr N Janardhana Raju Jawaharlal Nehru University, Delhi He says in the corporate and agriculture sectors, there is a need "to prevent over-exploitation and to stop further drilling of bore wells".

"We also have to encourage local communities to harvest rain water. Then only we can maintain ground water levels. If over extraction carries on, there is a risk of land subsidence also.

"Ground water regulation is so weak. That's why we need to revise the regulations and go for much stricter laws."

India is the world's largest groundwater user in terms of volume pumped and number of users.

The government planning commission estimates demand will double by 2050.

Agriculture is still the single biggest consumer of water, with 83% of all water available being used for irrigation. And as this grows so does the 'water footprint' of the entire sector.

Women digging ditches for water storage

This footprint also applies to companies that depend on produce from the fields to make their products.

For example, the Water Footprint Network estimates that the global average water footprint of one 250ml glass of beer (from barley) is about 75 litres.

The group defines the water footprint of a product as the volume of freshwater used to make it through the various steps of the production chain.

People have not given up hope.

Digging trenches along the road, a group of women hope to collect precious drops of rainwater. Fill our pots with water, they pray to the gods.

Water-intensive industries have to work with local communities for effective water management.

But it is only going to get scarcer as the population grows and industrialisation intensifies.

If more is not done to save this precious commodity, both people and industry will be left thirsty.

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Briefcase bomb kills 11 near India's High Court

NEW DELHI — A powerful bomb hidden in a briefcase ripped through a crowd of people waiting to enter a New Delhi courthouse Wednesday, killing 11 people and wounding scores more in the deadliest attack in India's capital in nearly three years.

An al-Qaida-linked group claimed responsibility, though government officials said it was too early to name a suspect. The attack outside the High Court came despite a high alert across the city and renewed doubts about India's ability to protect even its most important institutions despite overhauling security after the 2008 Mumbai siege.

Story: Suicide bombers kill 20 in Pakistan

"Have we become so vulnerable that terrorist groups can almost strike at will?" opposition lawmaker Arun Jaitley asked in Parliament.

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The bomb left a deep crater on the road and shook the courthouse, sending lawyers and judges fleeing outside.

"There was smoke everywhere. People were running. People were shouting. There was blood everywhere. It was very, very scary," said lawyer Sangeeta Sondhi, who was parking her car near the gate when the bomb exploded.

The government rallied Indians to remain strong in the face of such attacks.

"We will never succumb to the pressure of terrorists," Prime Minister Manmohan Singh said during a visit to neighboring Bangladesh. "This is a long war in which all political parties and all the people of India will have to stand united so that this scourge of terrorism is crushed."

Story: Pakistan arrests 3 in 'another fatal blow' to al-Qaida

The bomb exploded about 10:14 a.m. near a line of more than 100 people waiting at a reception counter for passes to enter the court building to have their cases heard. The blast killed 11 people and wounded 76 others. Their identities were not available, but no judges were among the victims.

People ran to assist the injured, piling them into three-wheeled taxis to take them to the hospital. Ambulances and forensic teams rushed to the scene, along with sniffer dogs and a bomb disposal unit, apparently checking for any further explosives.

Renu Sehgal, a 42-year-old housewife with a case before the court, had just received her pass and was standing nearby with her uncle and mother while her husband parked their car when she heard the explosion.

'Big panic'
"The sound was so huge and suddenly people started running," she said. "We were all in such a big panic. ... I'm lucky I survived."

The court building was evacuated after the attack.

The blast probe was quickly turned over to the National Investigation Agency, established after the Mumbai siege to investigate and prevent terror attacks.

Police were scouring the city for possible suspects, searching hotels, bus stands, railway stations and the airport, said top security official U.K. Bansal. All roads out of the city were under surveillance as well, he said.

Late Wednesday, police also released two sketches they said were based on descriptions given by eyewitnesses who claimed they had seen someone with a briefcase waiting in line outside the building.

"We are determined to track down the perpetrators of this horrific crime and bring them to justice," Home Minister Palaniappan Chidambaram told Parliament.

An email sent to several TV news channels claimed the bombing on behalf of Harkat-ul-Jihad-al-Islami, an extremist group said to be based in Pakistan. The group has been blamed for numerous terror strikes in India, and the U.S. State Department says it has deep ties to al-Qaida and some members have trained at al-Qaida camps.

The email demanded the immediate repeal of the death sentence handed to Afzal Guru, a Kashmiri man convicted in the 2001 attack on India's Parliament, and threatened to target other courts, including the Supreme Court.

'Not possible to name any group'
"We cannot say anything about the email until we have investigated it thoroughly," NIA chief S.C. Sinha said. "At this point the investigation is fully open and it's not possible to name any group."

The court bombing was India's first major attack since a trio of blasts in Mumbai killed 26 people on July 13. Suspicion fell on the shadowy Indian Mujahedeen, though no one has been arrested.

The bomb struck the High Court, an appeals panel below India's Supreme Court, even though the capital is on high alert because Parliament is in session. A small explosion on May 25 in a court parking lot appeared to have been a failed car bomb.

After the 2008 Mumbai attacks, the government expanded police recruiting and training, set up the NIA and established commando bases across the country so forces could react swiftly.

Jaitley, in Parliament, said the court bombing raised "deep concern" about "the kind of institutions and systems we have to build to fight this menace."

But officials say the number of targets in a nation of 1.2 billion makes it impossible to provide full security.

Dharmendra Kumar, a senior police officer, told reporters the court building itself was strongly protected by police but the explosion hit a busy main road outside.

K.P.S. Gill, a former senior police official, said Kumar's comment showed the police had a "ridiculous mindset" and India needed to rethink its strategy on preventing terror.

"If the public collects there, then you must protect that area," Gill said.

"Notice that this comes just days before 9/11, so the government should have expected something like this," said independent strategic analyst Maj. Gen. Ashok Mehta.

Memories of 2008
The attack rekindled memories of the string of deadly bombings that rocked the country in 2008, including a series of coordinated bomb blasts in New Delhi on Sept. 13 that killed 21 people. Many of those attacks were blamed on militant groups composed of disaffected Muslims furious at perceived injustices at the hands of India's Hindu majority.

That violence mostly abated after the November 2008 siege of Mumbai, when 10 Pakistan-based militants terrorized India's commercial capital for 60 hours, killing 166 people.

However, smaller attacks recently have raised concerns violence was returning.

Last Sept. 19, two gunmen on a motorcycle shot and wounded two Taiwanese men outside a famous New Delhi mosque. A few minutes later, a bomb rigged to a nearby car malfunctioned. On Dec. 7, a bomb exploded in the city of Varanasi, killing a 2-year-old, and a few months later came the failed attack on the High Court in New Delhi.

Wednesday a statement from Pakistan's government expressed "deepest sympathies" for the families of those killed in the explosion and the government and people of India.

U.N. Secretary-General Ban Ki-moon and the U.S. State Department also condemned the attack and offered condolences to the families and the U.S. offered assistance to the investigation.

The Associated Press and Reuters contributed to this report.

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Briefcase bomb kills 9 near India's High Court

NEW DELHI — An explosion near a crowded gate to the High Court in New Delhi killed at least nine people on Wednesday, officials said.

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The bomb appeared to have been hidden in a briefcase, Home Ministry official U.K. Bansal told CNN-IBN television channel.

Television images showed scores of lawyers in black coats running from one of the main gates of the building. Police cordoned off the area, not far from parliament and the prime minister's office.

'There was panic everywhere'
Police said Wednesday morning's blast hit an unsecured area outside a gate where the public gathers to enter the court complex. The High Court is an appeals court below India's Supreme Court.

"There was a bomb blast where you enter the court ... there was panic everywhere," witness Kriti Uppal told CNN-IBN.

Home Secretary R.K. Singh told CNN-IBN that the blast killed nine people and wounded 45 others.

It was the first major terror attack in India since a string of bombs exploded in three busy Mumbai neighborhoods on July 13, killing 20 people. Suspicion for those attacks fell on the shadowy extremist network known as the Indian Mujahedeen, though no one has been arrested.

The blast was the second explosion at the High Court this year. On May 25, a small explosion that appeared to be a failed car bomb erupted in the court parking lot.

Pakistani-based militants attacked Mumbai in coordinated assaults that killed 199 people in 2008, raising tensions with nuclear-armed arch rival Pakistan.

The Associated Press and Reuters contributed to this report.

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