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NDTV Report on AID's Bhopal Campaign |
Dow distances from Bhopal gas tragedy
Sarah Jacob, NDTV
Sunday, July 1, 2007 (New York):
In
2001, Dow Chemical bought Union Carbide for $9.3 billion, despite this,
Dow has refused to accept moral responsibility or be held accountable
for the Bhopal gas tragedy.
It argues that Union Carbide had
sold its shares in Union Carbide India before Dow Chemical acquired it
and that Dow had never owned or operated that plant. It now seems that
the Commerce Minister has concurred with this view, saying that Dow
cannot be held accountable for Union Carbide's liabilities.
As
Union Commerce Minister Kamal Nath sold American investors the India
story at the annual US-India Business Council Summit in Washington DC,
outside the conference protesters held their ground.
The group,
Association for India's Development or AID has charged the Commerce
Ministry of working behind the scenes to absolve Dow Chemical, the
American corporation that took over Union Carbide in 2001 of legal
liability for the Bhopal Gas Tragedy in return for investing in India.
According
to documents obtained through a Right To Information application on
February 7, 2007, Commerce and Industry Minister Kamal Nath wrote to
the PMO saying: ''While I would not like to comment on whether Dow
Chemical 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
Chemical, 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.''
Legal liability
AID
claims that despite what the Minister says about leaving the issue of
Dow's legal liability to the court, this letter is a clear indication
of where his sympathies lie.
In response to a PIL, the Jabalpur
High Court had ordered Dow Chemical to deposit Rs 100 crore for the
clearing up of toxic waste and contamination in and around the Bhopal
factory site. Protesters claim that since the issue of Dow's liability
is being heard in court, it is improper for a Cabinet Minister to take
the matter up directly with the Prime Minister.
"Sure, they can
improve the business climate in India but they should send a signal to
corporations that when some thing like the Bhopal disaster happens, the
company will be held fully liable for all the damage that it has done
and not send a signal that we are going to be soft. We are going to let
them off the hook," said Kiran Kumar Vissa, Director, AID.
Dow
Chemical's official stance is that the plant was owned by Union Carbide
India - a joint venture between Union Carbide Corporation, the Indian
government and private investors. Union Carbide had sold its shares in
Union Carbide India in 1994, seven years before Dow acquired it.
The plant is now controlled by the Government of Madhya Pradesh and Union Carbide India is now renamed Eveready Industries.
Inherited integration
"The
tragedy was at Union Carbide and Dow by integration inherited it. Union
Carbide-Dow themselves had no status in this. So, that does not affect
Dow's investments. Of course with the court cases, the court procedures
will continue. But we like to see this resolved and to see that this
chapter is put behind us," said Union Commerce Minister Kamal Nath.
At
the Doha Round of talks on the WTO, India, under Kamal Nath, emerged as
the voice of the developing world. The Bhopal Gas tragedy has
historically been rallying point for the need to hold corporations
socially responsible in developing countries.
The Indian
Government is trying to balance the need to attract foreign investment
with that of keeping corporations accountable in a democratic society,
where perceptions of succumbing to corporate pressure can be as
damaging as actually doing so. As it attempts to bring closure to this
issue, it is clear that it will receive careful scrutiny from both
foreign investors and domestic activists.
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