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Goans rally against Modi plan to turn tourist magnet into coal hub

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In the sleepy Goan beachfront town of Cansaulim, Angelo Fernandes and his neighbours stand guard in front of their 236-year-old church, watching a contractor haul away construction materials.

Hours earlier, local residents had been locked in a stand-off with railway workers sent to lay new track to transport coal through the community.

The showdown ended when local politicians intervened, work was suspended and the contractor pledged to remove the building materials. Mr Fernandes was there to ensure the contractor kept his word.

“Now we are wearing masks because of corona[virus], but if coal comes we’ll have to wear them forever,” he said.

The fiery encounter reflects growing anger in Goa against a government plan to turn the coastal state into a hub for the transport of coal through seaside villages and dense forests en route to large steel and power plants inland.

Companies such as JSW Steel and the Adani Group are using Goa’s Mormugao Port to import about 10m tons of coal from Australia and South Africa for use by heavy industries in neighbouring Karnataka state.

But Narendra Modi’s Bharatiya Janata party government is pushing for a massive expansion of the port’s coal-handling capacity to at least 41m tonnes a year by 2035.

To haul this huge quantity of coal from the port to industrial sites, authorities want to widen a highway and lay another track alongside the 153-year-old Portuguese-built railway line. The track runs through sensitive wildlife areas in the Western Ghats, mountains that have been recognised as significant biodiversity hotspots.

The existing line makes a steep climb through Bhagwan Mahaveer Sanctuary and Mollem National Park, passing in front of the Mandovi River’s spectacular 320m Dudhsagar Falls.

Goans are now mobilising to resist a project they believe will both expose local communities to large quantities of highly polluting coal dust, and break up a significant wildlife corridor that is home to panthers, leopards and other endangered species.

Angry flash mobs have forced the suspension of the double-tracking work in several locations over recent months.

Locals fear their ‘world-class’ Dudhsagar waterfall will be destroyed ©  Dmitrii Melnikov/Alamy

“People are asking, ‘What’s in it for us?’” said lawyer Savio Correa, who lives near the Mormugao Port. He added that residents were already plagued by coal dust. “You want to carry coal, but are Goans benefiting, or are we sacrificing our health and our economy for the benefit of somebody else?”

Past talk of double-tracking the railway line was squelched by state-level politicians. In 2013, Goa’s top forest official described the wildlife sanctuary, adjacent to Mollem National Park, as a haven for “highly indigenous and endangered species . . . which will be completely disturbed” by adding an extra track.

But Mr Modi’s government has redoubled its efforts since 2016 as part of a national drive for “port-led” industrial development.

Contentious environmental clearances for the heavy infrastructure in the wildlife sanctuary were granted in a virtual meeting in early April, when Indians were still confined to their homes during a coronavirus lockdown. About 80 hectares of prime forest are now set to be destroyed.

Claude Alvares, director of the Goa Foundation, an environmental campaign group that has filed a lawsuit against the project, said New Delhi appeared to be acting at the behest of powerful corporates.

“Goa is the darling of the country because it’s the greenest place still left,” Mr Alvares said. “This is the place with priceless air. You don’t initiate a programme to fatally damage that air for the next 100 to 200 years.”

He added: “They say it is in the national interest. Our counter is that protecting wildlife is also in the national interest. We are constitutionally required to make sure wildlife is protected.”

Adani said it had “no plans of further expansion of operations” at Mormugao Port, adding that the facility still had spare coal-handling capacity.

“Existing infrastructure is only fulfilling the existential needs,” Adani said. “These allegations of pressurising the government are baseless.” JSW did not respond to requests for comment.

The furore is piling pressure on Pramod Sawant, Goa’s chief minister, caught between an angry public and the national BJP leadership’s development drive. After being criticised at a public gathering, he impetuously pledged coal handling at Mormugao would be cut by half.

But Goans remain wary. In the village of Kullem on the outskirts of the Bhagwan Mahaveer sanctuary, Manish Lambor, the local headman, said many residents depended on tourism for their livelihood, and feared their “world-class waterfall” would be destroyed. “If they disturb the waterfall, what will tourists see?” he asked.

Restaurateur Tribolo Souza, who lives just outside the Mollem National Park where authorities aim to build a four-lane highway, is furious. “The government of the day is not concerned about Goa,” he said. “They are all out to sell Goa.”



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Toyota faces Thai bribery probe over tax dispute

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Toyota is under investigation in Thailand over allegations that consultants hired by the world’s largest carmaker tried to bribe local officials in a tax dispute, according to Thai authorities, court documents and a person with knowledge of the matter.

The probe followed a filing last month in which Toyota revealed that it had reported “possible anti-bribery violations” related to its Thai subsidiary to the US Department of Justice and Securities Exchange Commission.

Toyota is one of the biggest foreign investors in Thailand, where it makes a large range of cars, vans and pick-up trucks for the local market and for export. The country is Toyota’s biggest manufacturing hub in south-east Asia. Prior to the Covid-19 pandemic, car sales had been strong in a market, where it has a 31 per cent share.

This month, Thailand’s Court of Justice said in a statement that it would take action against any of its judges found to have taken bribes. The statement, which the court described as a move to “clarify facts” in a news report on a foreign website, directly referenced a tax dispute involving Toyota.

“If the Court of Justice has received information or explicitly found that any judge committed an act of corruption to their duty, whether it is about bribery or not, the Court of Justice will resolutely investigate and punish any action which dishonours judges, undermines the neutrality of the court, or causes society [to] lose faith in the Thai justice system,” it said.

According to the court, the case involved a tax dispute worth Bt10bn ($320m) between Toyota Motor Thailand and tax authorities over imports of parts for its Prius hybrid model. 

The affair dates back to 2015, when Toyota’s Thai subsidiary was accused by local customs authorities of understating taxes by claiming that the imported Prius vehicles were assembled from completely knocked down kits, or imported parts that were later assembled in Thailand.

CKDs would have been subject to a discounted tax rate under a Japanese-Thai free trade agreement, but if the cars were fully assembled before being imported they would have attracted a much higher rate. 

Toyota appealed against a decision by customs authorities to impose a higher duty in 2015, but lost. 

Thailand’s Court of Justice has said that it had accepted a petition to review the case, but had not yet begun hearing it.

In its regulatory filing last month, Toyota warned that the US investigations regarding its Thai subsidiary could result in civil or criminal penalties, but the company has not disclosed any detail on the allegations.

In a statement, Toyota said it was co-operating with the investigations and declined to comment on the tax dispute in Thailand. “We take any allegations of wrongdoing seriously and are committed to ensuring that our business practices comply with all applicable government regulations,” it said.

The SEC and the DOJ declined to comment.



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Boris Johnson cancels India trip after Covid cases surge in country

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UK prime minister Boris Johnson’s trip to India this month has been cancelled as the country battles a new variant and a surge in coronavirus cases that is overwhelming hospitals.

A joint statement by the British and Indian governments said the decision to scrap the visit scheduled for next week was prompted by the “current coronavirus situation”.

The trip, during which Johnson had hoped to discuss the prospects of a closer trading partnership with India, was initially planned to run for four days but had been scaled back. The two leaders will speak remotely instead, with plans to meet in person later this year.

The cancellation came as India’s capital city region has been put under lockdown and authorities have prohibited the use of oxygen except for essential services, as the country battles a surge in coronavirus cases that is overwhelming hospitals.

India continues to set single-day records of coronavirus cases, reporting more than 273,000 new infections and 1,619 deaths on Monday, with the number of new cases growing by an average of 7 per cent a day, one of the fastest rates in any big country.

The surge is believed to be linked to a new B.1.617 variant that was first discovered in the country.

British health officials are investigating whether the variant should be reclassified from a “variant under investigation” to a “variant of concern” following the discovery of 77 cases in the UK.

“To escalate it up the ranking we need to know that it’s increased transmissibility, increased severity, or vaccine-evading, and we just don’t have that yet, but we’re looking at the data on a daily basis”, Dr Susan Hopkins, a senior medical adviser at Public Health England, said on Sunday.

Officials in Delhi announced it would impose a strict lockdown for a week, following Mumbai and other cities that have already placed curbs on movement.

States are running short of beds, drugs and oxygen, leading the central government to restrict use of the gas. “The supply of oxygen for industrial purposes by manufacturers and suppliers is prohibited forthwith from 22/04/2021 till further orders,” the central government said.

Arvind Kejriwal, chief minister of Delhi, said “oxygen has become an emergency” in the region because its quota had been diverted to other states. He warned there were “less than 100 ICU beds” available.

The new restrictions have been imposed even as Prime Minister Narendra Modi and his ruling Bharatiya Janata party have hosted huge political rallies and allowed religious festivals attended by tens of thousands of maskless people in recent weeks.

Amit Shah, India’s home minister, told the Indian Express newspaper that he was “concerned” about the variant and the “surge is mainly because of the new mutants of the virus”. But he was “confident we will win” over the disease and said there was not yet a need to impose a national lockdown.

Bed shortages in India have forced authorities to re-establish emergency coronavirus hospitals in banquet halls, train stations and hotels that had been shut down following the previous peak in September. Crematoriums in the state of Gujarat and Delhi are running 24 hours a day, while cemeteries are running out of burial spaces.

Coronavirus patients have also been struggling to access medicines. More than 800 injections of remdesivir, an antiviral drug commonly used in India as part of Covid-19 treatment, were stolen from a hospital in Bhopal, Madhya Pradesh, at the weekend.

India is also facing a vaccine supply crunch and has frozen international exports of jabs to meet domestic demand. New Delhi pledged on Friday to increase monthly production of Covaxin, a vaccine made by Indian manufacturer Bharat Biotech, to 100m from 10m by September. The government also said last week that it would fast-track the approval of foreign vaccines in an attempt to boost supply and cleared Russia’s Sputnik V for use in the country.

The majority of the more than 120m Indians that have been vaccinated have received the Oxford/AstraZeneca jab manufactured by Serum Institute of India, the world’s largest manufacturer. The Serum Institute has struggled to increase its monthly capacity of more than 60m doses a month due to a fire at its plant earlier in the year and equipment supply shortages from the US.

Additional reporting by John Burn-Murdoch in London





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The limits of China’s taming of tech

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The record fine handed out this month to Alibaba, the Chinese ecommerce giant, was a welcome step toward combating anti-competitive behaviour. The $2.8bn penalty put Alibaba and other tech companies on notice that creating siloed fiefdoms designed to trap customers and merchants within their ecosystems will not be tolerated.

It was addressing a longstanding problem. Many of China’s ecommerce companies operate “walled gardens” that prevent interactions with rival platforms. For example, Alibaba’s Taobao ecommerce app keeps users from paying for goods using the payment app of rival Tencent. Tencent’s social media app, WeChat, prevents clips from being shared directly from ByteDance’s video-sharing app. 

Last week China’s internet and market regulators signalled the seriousness of their intent. They gave tech companies one month to fix anti-competitive practices, telling them to conduct “comprehensive self-inspections” and “completely rectify” problems, following which they would need to publicly promise to abide by the rules. The aim is create a commercially open and competitive internet.

It is tempting to argue that regulators in the west could take a leaf out of China’s book. But to hold China up as an example of competitive best practice would be to ignore the elephant in the room. Although Beijing is giving its monopolistically-minded internet companies — which are almost all private enterprises — a rap on the knuckles, it shows no sign of applying the same standards to vast swaths of the economy that have been dominated by state-owned giants for decades. 

The market dominance of these behemoths of state capitalism is an issue that affects not only domestic competitors but also foreign multinationals that operate in China. A trenchant joint paper last week from the European Council on Foreign Relations, a think-tank, and the Rhodium Group, a consultancy, took aim at the increasingly unfair advantages that this system gives China.

While it is true that China has opened up sectors such as financial services to foreign capital in recent years and allowed foreign brands to win market share in luxury goods and pharmaceuticals, broad sectors of the economy remain fully or partially closed or to overseas investors. 

Often the barriers erected to block or stymie competition are informal. Authorities can deliberately favour domestic companies in public procurement, are more ready to grant approval for licenses, subject foreign firms to arbitrary inspections or require them to re-engineer products to meet idiosyncratic domestic standards.

Such drawbacks are not new. But they are taking on an extra urgency as Chinese companies become leaders in an increasing number of industries and the country’s technological prowess draws level with the US and Europe in a list of industries. The key problem now, says the ECFR/Rhodium report, is that Chinese multinationals are using the advantage of a protected home market to build up resources that they then deploy in competition with western counterparts abroad.

This sets the scene for friction. China should extend its anti-monopolistic scrutiny from its own privately owned internet companies to several state-dominated sectors of its economy, taking care to open to foreign multinationals as much as domestic competitors. If it decides against doing this — as is likely — it will be furnishing Europeans and Americans with ammunition to argue against extending access to Chinese corporations in their own markets.



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