WASHINGTON: The World Bank has rejected the view of environmentalists that the Narmada Dam project in Western India is uneconomic and asserted that its rate of return will be 12%.

It also overlooked other criticism as either having been met or in the process of being considered.

On the Singrauli project, the Bank, in its first annual report on the environment, says it agrees with “many of the criticisms” by the environmentalists.

However, even there, it says separate interventions are being considered either as part of existing projects in the states bordering ‘Singrauli or as components in new Projects.

Analysts here said the statements in the bank’s annual report were a guarantee that criticism by Indian. Environmentalists and their supporters in the U.S. would not be allowed to torpedo these major projects.

“The resettlement issue has been the main focus of attention by critics…all the affected states— Gujarat, Madhya Pradesh and Maharashtra—have now adopted new policies for resettlement and rehabilitation…to date there is no shortage of alternative land for resettlement,” the report said.

“Some claim that the Sardar Sarovar dam will inundate forces areas. The fact is that very little ‘forest’ (in the ecological sense) is at stake, since the areas of inundation designated ‘forestland’ are virtually devoid of trees or other vegetation…, it added.

Article extracted from this publication >> October 5, 1990