Environmental Compliance: A case study of the Alang ship-breaking yard

Abstract

A study of the Alang Ship-breaking Yard, Gujarat was undertaken to examine the factors responsible for environmental non-compliance. Levels of pollution can be lowered through effective environmental regulations. The effectiveness of environmental regulations is dependent on the cost of mitigation, the extent of mitigation sought and the nature of instruments used. The earliest efforts made to control pollution in India date back to the nineteenth century, in the pre-independence period, pollution and environmental degradation were addressed in a very general manner, mostly as a response to nuisance and liability. The post- independence era, saw a spate of legislations with the active intervention of the judiciary in the nineties, as the environmental pollution did not abate despite the laws. Their effectiveness in having the desired effect of mitigating pollution remains problematic. Environmental non-compliance, as seen from literature, could be either due to the costs of mitigation itself being very high; or the laws being very ambitious that they raise the cost of mitigation so that no adherence is possible; or the probability of the cost of being so low, that firms prefer to stay non-complaint since the firms are also lax. To examine the above three scenarios in greater detail and to arrive at the casual factors for non-compliance, a study of the Alang Ship breaking Yard, Gujarat was undertaken. Alang has a market share of 46 percent, which translates to 2152 lakh Metric Tonnes of LDT in 1999-2000. Ship-breaking is a highly labour-intensive sector with an annual turnover of almost Rs. 550 crore. The main stakeholders at Alang are the ship breakers; Gujarat Maritime Board [GMB] and the labourers. GMB’s revenue out of Alang has been in the form of lease payments and other facilities for ship-breaking that have been provided. Contribution to the State Domestic Product of Gujarat has been approximately Rs. 160 crore; of which the contribution of Alang has been close to 30 crore {18. 75 per cent}. When the ships come for dismantling, they contain many hazardous substances that need careful disposal; and compliance to the norms laid down assumes paramount importance. But it is seen that there is gross violation of norms. Because of external pressures in the form of Greenpeace and Supreme Court judgments, compliance is reportedly better but in truth is very different. Facilities and norms as required by law are seemingly in place, but their functionality is non-existent. The stakeholders namely the Gujarat Maritime Board and the ship-breakers seem to be jointly indulging in rent-seeking behavior. inspections are very Few and insignificant, thereby reducing the probability of detection. Punitive measures are very low. The laws have been formulated keeping international norms as the standard and are stringent. While the Ministry of Environment and Forests lays down these regulations, State Pollution control Bodies have the authority to make them more stringent, if required. With no economic incentives for compliance, one finds few takers for these laws. The ship-breakers have a strong political lobby that is successful installing any change process initiated by the judiciary. The judiciary is forced to intervene due to the political inactivation of the legislature. Environmental norms are not adhered to. Hazardous substances from the ships to be dismantled are either sold or discarded by dumping into the sea as the facilities for disposal to be provided for by GMB, are non — existent. Safety nor for dismantling are not adhered to; resulting in serious accidents and deaths in a month. The reported and evidence are destroyed. On an average, there are close to 5-8 deaths in a month. The migrant laborers who have no association of their own to represent them are at the receiving end. Poor and hazardous working conditions low wages and insecurity of job, lack of basic amenities like food and water are the means through which the labor is exploited. The only way to bring about better compliance in Alang seems to be in empowering the labour and bringing to light the conditions at Alang; about which great secrecy is maintained both by the ship-breakers and the government officiais. This would bring about greater pressure to comply both on the part of the ship-breakers and the Government officials. The punitive measures decided by the judiciary could be raised {from the existing] levels so that they may prove to be deterrents.