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Protest againts Vedanta for its operations in India.

Protest againts Vedanta for its operations in India.

It was a quest for survive that pushed Vedanta to find another, lucrative business. In fact its plan for more than $5.8 billion to increase the Aluminium production has been rejected by the government, due to mounting international pressure to protect the Adivasis in Niyamgiri Hills[1]. The repercussion of that failure is big enough to be the mover for the challenge against Ambani’s Reliance.

 Cairn main assets in India are in Rajastan, a huge field estimated in billions of dollars. That was the jackpot for a small venture like Cairn; But to compete with Reliance, you need to be much bigger and much linked to political power. Requirements that Vedanta matches. On the other hand, to exploit Vedanta’s economy of scale, Agarwal needed to grab any possibility on the market.

The Mannar Basin oil fields were ideal. Unfortunately the Sri Lankan civil war was a major obstacle, with the fierce LTTE ready to go all way for the cause of independence. The Sri Lankan government lacked the political will to annihilate the rebels.

A march of the Balck Tigers, the LTTE special forces for suicidal attacks.

A march of the Balck Tigers, the LTTE special forces for suicidal attacks.

In fact 20 years ago, when the Indian Peace Keepers intervened in the fight, Colombo incredibly re-armed the rebels, just to kick out New Delhi from the island[2]. In 2005 the parties were close to a peace treaty. But while Sri Lanka was ready to devolution, the LTTE wanted a clear path to secession. Meaning: conflict could last for another generation.

So the new President Rajapaksa changed the strategy[3]: now it was complete destruction of the rebels. Why this stance wasn’t adopted earlier? Two reasons: civilian casualties involved in chasing the guerrilla forces. And India. New Delhi never really approved the elimination of the LTTE (though responsible of the killing of Rajiv Gandhi). But in 2006, the Indian position changed. Suddenly New Delhi offered complete support: maritime patrol, electronic surveillance, military and political backing (the Tamil nationalist sentiment in Tamil Nadu were controlled by the then Chief Minister, Mr Karunanidhi, a hard-core supporter of LTTE, but involved in a personal scandal during that period[4]).

In 2009 80000 Tamil civilians have been massacred on the shores of Nandikadal lagoon and in Mullivaikal.

In 2009 80000 Tamil civilians have been massacred on the shores of Nandikadal lagoon and in Mullivaikal.

The rest is history: from the bloody shores of the Nandikadal lagoon, 280 000 Tamil civilian come out, leaving behind possibly more than 80000 dead. The fate of the Tamil population in their land now is the one of an occupied country. The military presence is strangling any activity.

But the Mannar Basin fields are blooming. In 2013 Sri Lanka launched another bidding round, this time everybody in the sector was queuing: Exxon, Total, Gazprom, Eni[5].

Clearly the news of Cairn-Vedanta success reached the big players of oil and gas.

The question now is: who could provoke a radical change in the Indian policy towards Sri Lanka? Cairn is out of the question.

Vedanta entered the game only in 2011, when the war was over since 2 years. If you believe in conspiracy, you could suspect that Vedanta chased the deal much earlier, convinced the Indian government to intervene in its favour and Cairn to spearhead the negotiation to avoid attention.

Of course this is just an exercise of speculation.

The signing ceremony of the agreement of petroleum resources between the Government of Sri Lanka and Cairn India (Pvt. Ltd) . President Mahinda Rajapaksa,  Minister of Petroleum and Petroleum Resources A.H.M. Fowzie and Indrajith Benerjee, Chief Finance Officer and Ajay Gupta Head of Commercial and New Business of Cairn India . Photo Sudath Silva

The signing ceremony of the agreement of petroleum resources between the Government of Sri Lanka and Cairn India (Pvt. Ltd) . President Mahinda Rajapaksa, Minister of Petroleum and Petroleum Resources A.H.M. Fowzie and Indrajith Benerjee, Chief Finance Officer and Ajay Gupta Head of Commercial and New Business of Cairn India .
Photo Sudath Silva

agarwal ambani

Mr Agarwal, founder of Vedanta and Mr Ambani, chairman of Reliance Industries

With the purchase of Cairn India, Mr Agarwal, boss of the mining powerhouse Vedanta resources, officially challenged the dominance of Reliance Industry, the Ambani’s giant in petrochemicals and refining[1][2]. Vedanta and Reliance were undisputed kings in their respective sectors: complementary and parallel. Both can count on mighty political clout and this feud showed their potential: in defence of Ambani’s Reliance went in Mr Sharma, chairman of the state-owned ONGC and Petroleum Secretary Mr Sundareshan. On the camp of Agarwal’s Vedanta, nobody less than UK’s Prime Minister David Cameron[3].

Mr Cameron pubblicly lobbied in favour of Vedanta with Mr Singh.

Mr Cameron pubblicly lobbied in favour of Vedanta with Mr Singh.

The bone of contention is simple: oil. In Sri Lanka[4]. Offshore of the Mannar Basin lie reserves up to a billion barrels. Reliance Industry was drilling on the Indian side of the Strait, but when the government of Sri Lanka offered the exploration rights in 2007, they Ambani’s group declined. Why?

Well there are always a lot of risks associated with oil extraction, first of all, there is no guarantee of discovery, second it could be not commercially viable to extract it.

But the Mannar Basin case was even riskier: it was the theatre of a civil war. The area was under the control of the LTTE, one the fiercest guerrilla army in the world. Surely if you buy, you want some guarantees that your will be able to access your property.

The LTTE navy, the Sea Tigers, guaranteed the security of sea lane supply for more than 30 years.

The LTTE navy, the Sea Tigers, guaranteed the security of sea lane supply for more than 30 years.

Now the company that was awarded the concession was Cairn, a small venture based in Edinburgh (with the bulk of their interests in India). What was the level of political leverage that Cairn could exercise to demand for assurance? Null. The management of Cairn, we are supposed to believe, bought the exploration rights with no further collateral for their purchase, no political promise that their property will be their hand soon.

But in 2011 Vedanta saved the “Scottish” company with their offer[5]. The operation was hardly contested by the Indian government; as we have seen, the move was an aggressive entrance in the landscape of Reliance and Ambani’s clan didn’t particularly welcome the new comer[6].

Agarwal acknowledged the leading role of Ambani: “They (Reliance) will continue to be the largest player. But, at the same time, there is enough water in the sea for other players to also do business.” [7]

If you are familiar with the Indian capitalism, you know very well that the big players are running monopolies supported by political protection. Competition is sacrilegious. So why Agarwal decided to challenge so directly Ambani?

Adivasis fighters.

Adivasis fighters.

Rumours go that he was concerned for his venture in Orissa[8]. Vedanta was involved in a billion mining project; they received of course all the authorization from the central government, but a small detail was blocking the operations: 80 million of Adivasis, the Indian Aborigines. The inconvenience was due to be quickly removed with mass evictions; this led the Adivasis to join the Maoist guerrilla, but Vedanta wasn’t worried: in fact the central government declared this insurgency (sometimes the Adivasis attacked with bows and arrows) as the nation’s main security threat: more than the archenemy, atomic-armed Pakistan. Operation Green Hunt was launched to eradicate the Maoist[9] and incidentally, any obstacle to Vedanta manoeuvres. Unfortunately for Vedanta, public and international outcry sprung in favour of Adivasis and suddenly the big deal, despite all the political support, was in peril[10]. The Orissa crisis urged Vedanta to look for alternative business[11]. Quickly.


mullivaikal

More than 80000 Tamil civilians were killed during the last attacks of the Sri Lankan civil war.

One may be tempted to say that it is not the first case of impunity, not even in recent history. True: in Syria for example there are concurrent narratives of propaganda blaming alternatively the government and the rebels. But the novelty in respect of Sri Lanka is the absence of competitive perspectives. It is well known that China protects Sri Lanka; a little less divulged is the Indian protection of Sri Lanka. But the real point is that the West is actually not interested in accusing Sri Lanka. The US made very bland recommendations to Colombo, in comparison what is at stake. The impression is that the Sri Lankan government shall be charged for mishandling the behaviour of its troops. The boys went too far in certain circumstances, but we don’t have the political will to scold our naughty soldiers.

500 000 Tamil civilians were chased out,through shelling and starvation.

500 000 Tamil civilians were chased out,through shelling and starvation.

The accusation is far from this insipid criticism: the government of Sri Lanka launched a heavy military offensive against hundreds of thousands of civilians. Again, it’s better to have clear in mind that we are not speaking of isolated episodes: the plan was to bring war in the middle of Tamil inhabited areas. The operation was designed to bring havoc in every Tamil house. At the peak of the Vanni operation, almost half a million of people has been chased, starved and bombed out. It is less about the casualties and more about the intentions. The carnage of 80000 civilians is still not the most horrible part of the truth. Soldiers massively brainwashed and put under extreme psychological stress, can eventually go crazy and out of control. This is still criminal and to blame. But the Sri Lankan case is worst: the government planned to massacre the civilians. We are not discussing episodes of crossfire: we are accusing the government of Sri Lanka of heavy shelling on harmless population. Repetitively. It was a decision, it was planned.

united nations

The silence of the United Nations is a crucial accomplice in the massacres.

And the United Nations, the government of USA, UK, India, France, Norway and Japan know what happened. The UN actually published a report where it estimates at 40000 the number of civilian casualties[1]. Moreover an internal inquiry from the UN provided even more critical observations about the accomplice negligence[2].

New Delhi provided military intelligence, electronic surveillance and field support on the ground: India was informed in real time. Actually, it was New Delhi that was informing Colombo about the development of action.

Now such carnage won’t be sanctioned.

Why? Several reasons for the convenience of geopolitical equilibrium. We have some suspicions that the oil discovery in the LTTE[3] controlled area could have been a game changer, especially for India (with Vedanta and Cairn) and European countries, like the UK (again with Cairn and Vedanta, both London-listed), France (with Total); but also Malaysia, with its powerful Tamil presence, was involved through Petronas[4].

The estimated reserves of the Mannar Basin oil field  are up to a billion barrels.

The estimated reserves of the Mannar Basin oil field are up to a billion barrels.

Aside this allegation, the undisputed outcome is that Sri Lanka will walk away from a planned massacre with total impunity, because it made the right diplomatic move. Namely, it sought agreement with every power involved. With the US, Colombo justified the operation with war on terror (it was actually a civil war). With China, it sold out a port facility (to be included in the String of Pearls). With the other Sri Lanka exchanged attractive economic deals (the exploration rights have been ceded at bargaining price). In fact during the final phase of the war, the duo Kouchner-Miliband improvised a timid protest[5], but already in 2011 France was pledging support to Sri Lanka[6] (in 2012 Paris collaborated with Sri Lankan secret service in the extra-judiciary killing of an Ex-LTTE member Parithi[7] and in 2013 Total is ready to join the Mannar Basin deal[8]), while UK was deeply compromised with Colombo for arm trade (see the scandal that led to the resignation of Defence minister Liam Fox[9]) and economic interest (Cameron lobbied in favour of Cairn and Vedanta with Indian government[10]).

This episode will establish an important precedent in international jurisprudence: heavy diplomacy with all the parties, with all the regional and global powers will give you clearance on everything you do. Everything.

Mullivaikkal Massacre May 2009

Mullivaikkal Massacre May 2009


In this video, India’s express Chief Editor Shektar Gupta interviews Sri Lanka’s President Mahinda Rajapaksa for NDTV’s program “Walk the Talk” on 1st of June 2009, in the immediate aftermath of the end of the conflict.

The first, immediate aspect is about a sense of normality, almost familiarity. I don’t want to dig about the mutual propaganda of India and Sri Lanka, but one thing is clear: this interview could not take place with a Chinese journalist.

Colombo is leaning vigorously on the Beijing side and yet this meeting is a reminder that Sri Lanka plays with India, not matter how many billions, tankers or vetoes in the security council arrived from far away, ultimate solutions and persistent problems will concretize in the neighbourhoods.

On this line it is emblematic what Rajapaksa considered Prabhakaran’s biggest mistake: the killing of Rajiv Gandhi (part 1, min 02.20). More than the genuine thinking of the President it is important that he is completely in tune with an Indian audience. For Rajapaksa is not an effort to get in to such character: he’s more than pro-India or India-friendly: he is organic in the Indian vision of politics. This is obvious, regardless the sincerity of the president.

The triumph of this attitude of course is when Rajapaksa says: I was fighting their war (part 2, min 3.55). Probably there is the intention of favourably influence the Indian public, but he transmits also a degree of submission, almost like a servant delivering the job for his master. Many consider Rajapaksa a cunning fox, which is actually deceiving the Indian partner. But when discussing the timing of Prabhakaran’s killing it is more than obvious that it was prepared in collaboration with New Delhi: even Gupta, in his most than toothless interview, feels the need to highlight the timing (part 2, min 2.00). I want to point out few lines earlier: when discussing the politicians in Tamil Nadu, Rajapaksa doesn’t have the guts to mention their names (part 2, min 1.20). The nationalist Tamil parties are direct in their accusation and they clearly stand as a vocal opposition against his administration. Yet, he is quick in downplaying a straight confrontation.

This overdose of diplomacy sounds wrong, especially when with soft words claims that the Tamil issue is an invention of politicians (part 2, min 5.35). That is a sort of very dark sarcasm, if you consider the numerous progroms against the Tamil since independence. The horror grows in the final, when he assures that he’s looking after the Tamil brothers and sisters in Sri Lanka (part 3, min 5.15).

13 out of 16 division of the Sri Lankan army are stationed in the North and the East; countless cases of abuses against women by armed forces, land grabbing and expropriation. All these episodes are not good example of protection. But the pearl of this exaggeration is not contained in the screened version of the interview; if you go to on-line transcript[1]: he claims that the number of civilians is less than 100. Less than 100!

This would be ridicule if we weren’t talking of one of the most horrendous massacres in recent history. NDTV had the taste of not including these idiocies in their program; on the other hand Gupta certainly didn’t grill his interviewee. The overall impression is that India and Sri Lanka share more than cultural and economic ties: also responsibility for the slaughtering of tens of thousands of civilians, Tamils to be precise, and also for the mediatic cover up of the entire operation.

Well done India!

UNHRC and Sri Lanka

UNHRC and Sri Lanka

The upcoming UNHRC will very likely vote a resolution against Sri Lanka. The US had made clear it is a procedural on and we can expect India to align itself with the Western countries. What does it mean? Absolutely nothing. This is the masterpiece of diplomacy by US, Europe and India, to support the criminal regime of Sri Lanka. In fact all this manoeuvring in Geneva, all this supposed actions against Sri Lanka, in reality are nothing. The 2013 resolution will be merely procedural: it means it won’t bring any novel fact, only it will require to implement the 2012 resolution. It is the case that 2012 resolution, the big betrayal of India against Sri Lanka, was in fact another joke. In 2012 the US sponsored resolution asked the government to implement the LLRC. Now, LLRC was the recommendations for the government by a committee nominated by the government. As you can image, the most serious allegations and issues weren’t touched even marginally: the LLRC was a toothless instrument.

rajapaksa smilingThe focus on LLRC is a diplomatic mirror to elude the reality of fact: the US, Europe and India can confront Sri Lanka on that irrelevant field. Sri Lanka will respond, UN will make more pressure, finally they will find a compromise. Everybody is happy, the West shows it has forgot Sri Lanka, India can say that they fight for the Tamils on the international stage and Colombo can cry on this fake diplomatic defeat.

Can we remind ourselves that the problem in Sri Lanka is not burocracy, or the implementation of a recommendations made by the government to itself, but the serious allegation of war crimes and genocide.

Can someone tell the Tamil diaspora that fighting these risible battles doesn’t make any difference? That if you “defeat” Rajapaksa on this, you are actually losing? Rajapaksa will accept this pressure after long negotiations: do you know that after such compromise, you can’t start to ask something else immediately?

You will win the Geneva vote in 2013 and that will have zero consequence in the process of accountability and even less in the protection of the Tamils in Sri Lanka now.

Adivasis revolutionary fighters

Adivasis revolutionary fighters

What is the biggest threat to India’s security? You could think of further terrorist operations orchestrated by their arch-enemy Pakistan, the so called containment strategy of China with the String of Pearls, but no, you would be wrong. Surely the Indian armed forces and the RAW, the secret service are taking into account these issues as future menaces. But the current, biggest threat to internal security is the Maoist guerilla of the Naxalites, which count amongst its file indigenous warriors armed with bows and arrows. Members of the Adivasis, the indigenous ethnicity of India, more than 80 millions, are fighting back against the oppression by the central government and joined the Maoist militia in several states. The some of the Adivasis are tired of being discriminated and most of all expropriated of their land rights.

Adivasis's rally

Adivasis’s rally

And New Delhi, the biggest democracy of the world, the strong ally of the good Western government amongst the dodgy, authoritarian Asian states, responded with a responsible, measured, contained military operations, called Green Hunt. In collaboration with the regular forces there are also paramilitary troupes, funded by private stakeholders. These are the best practices exported by the USA during the Afghanistan and Iraq wars and we should admire the consistency of India in aligning itself with the best Western policies.

Adivasis' protest against Vedanta

Adivasis’ protest against Vedanta

You may ask why the Indian government is so upset with indigenous populations, who lived for millennia in their forest, with unchanged habits and astonishingly sustainable behaviour, why they are fighting these groups rather than picking them up as global models? Easy to answer, it is the case that they live where there are enormous reserve of metals and minerals. And given the needs of the growing Indian economy and the worldwide prices, many companies are salivating at the idea of grabbing those mines. In particular the giant Vedanta secured vast concessions. And they want to exploit them, so they supported this massive campaign to evict the Adivasis from their property.

Sri Lanka Defence minister Gotabaya Rajapaksa, with alleged blood stains on his shirt.

Sri Lanka Defence minister Gotabaya Rajapaksa, with alleged blood stains on his shirt.

A generous offer of consulting about the matters arrived from Sri Lanka. Gotabaya Rajapaksa, brother of the president Mahinda and plenipotentiary minister of Defence, not to mention acclaimed leader of the army and potential war criminal for the massacres of 2009, offered his help1.

Mr Rajapaksa exposed his rationale: we have matured an extensive experience in counter-insurgency and we learned how to deal with fighters mingled with civilians. You have only to control the media and position yourself wisely in the international scenario, then you can do whatever you want. Seriously, you can slaughter hundreds of thousands (yes, around 3 times the victims in Sirya) of civilians and nobody will mind your business.

If you think that I’m exaggerating, many Indian commentators thoroughly studied the Rajapaksas’ strategy and compiled a brief guideline that is precisely mentioning control over the media, international relations and steel determination to achieve the goal, regardless of civilian casualties2.

Gen. Bikram-Singh visits Sri Lanka President Mahinda Rajapaksa.

Gen. Bikram-Singh visits Sri Lanka President Mahinda Rajapaksa.

Finally Rajapaksa can offer an already integrated plan of action: Sri Lankan and Indian forces not only conducted joint operations in the past. During the IV Eelam war, military officer from the Indian forces were actually on the field, monitoring, observing, advising and cooperating with the Sri Lanka’s Army. New Delhi is perfectly aware of what happened in 2009 and the fate of the so called “brethren” Tamil. Tamil Nadu politics is based on the support to the Tamils on the other side of the Strait. At least this is the main characteristic of one of the most important politician, Mr Karunanidhi, who was Chief Minister of Tamil Nadu during the final days of the war and who didn’t move a finger to safe his beloved bretheren because was involved in a massive scandal of corruption.

In a matter of days, India answered, that, yes, they are quite interested in the Sri Lankan offer to train them on counter-insurgency. Quoting Gen. Singh: “With significant experience on both sides, we have a lot to learn each other and we look forward to reinforcing our cooperation in the military domain further”3.

Sri Lanka granted exploration right to Cairn back in 2008

Sri Lanka granted exploration right to Cairn back in 2008

A final note: in the Mannar Basin, offshore from the coast controlled by the LTTE and scenario of the massive, brutal counter-offensive of the Sri Lankan army, in which almost 440 000 civilians have been chased like wild animals for months, it has been found oil.

And guess who is taking control of those oil field? You’ll never get it. It’s Vedanta again!

So Vedanta is conducting paramilitary operations in India to evict Adivasis, and then it turned to Sri Lanka to expropriate the Tamils because of the oil, using the ruthless Rajapaksa regime as (happy) executioner of the dirty job. If it was a Hollywood movie, you had say that the figure of the evil company exploiting natural resources and killing poor indigenous would have been too clichè to be true. As usual reality is more surprising than fiction, much more.

290 000 Tamil civilians come out from the last siege of the Sri Lankan army.

290 000 Tamil civilians come out from the last siege of the Sri Lankan army.

IV eelam warIn this year, the IV Eelam War broke out. After the attempt of the Peace Talks from 2001 to 2005, both parties strove to resume hostilities. Many reasons have been added for the failure of the peace process. For the LTTE and especially its leader, Prabhakaran, the agreement was to far away from full independence. Of course that target was impossible to reach through negotiations, therefore only the military way was open for that purpose. On the other side the Sri Lankan government had promised even too much in the eyes of its more nationalistic constituency. Therefore in 2006 everybody was keen to start again the war.

Erik Solheim and Velupillai PrabhakaranPhoto nation.lk

Erik Solheim and Velupillai Prabhakaran
Photo nation.lk

The biggest loser was Norway. The Nordic country in fact dedicated a lot of efforts to find a deal. If you consider that from 2001 TGS-Nopec, a company specialized in seismic survey for oil exploration, was showing enthusiastic reports about the possibility to find petroleum reserves, you may guess that the government in Oslo had some undisclosed interests. If you add that the special envoy, Mr Erik Solheim, just on the brink of the Peace Talks ending was nominated Minister for International Development1, with specific interest in the oil sector, for the Norwegian initiative “Oil for development”,Norad2, (see Solheim’s activity in Ghana3, Sudan4, Angola5).

 But Norway is not the only country in the world searching for opportunities in the oil sector. China and India in the same period were involved in a tough race to secure contracts for natural resources

Union Petroleum Minister Mani Shankar Aiyar with the President of China National Petroleum Corporation, Chen Geng in Beijing on January 13.

Union Petroleum Minister Mani Shankar Aiyar with the President of China National Petroleum Corporation, Chen Geng in Beijing on January 13.

around the world. The competition was so strong, that their bidding war was driving prices up everywhere. Thus the two Asian giants decided to form an alliance. “The agreement aimed at preventing the two nations competition for oil assets pushing up prices, symbolises their increasingly assertive role in global energy politics” (source: Financial Time).6

 One of the first country to test this alliance, was precisely Sri Lanka. President Rajapaksa, soon after he received information about the possible presence of oil in the Mannar Basin, decided to get rid of Norway and offered India and China one block each 78.

We are far from saying that the Peace Talks were interrupted for the oil discovery; we are also not affirming that the IV Eelam War was oil-driven and that the India and China support of Sri Lanka was motivated purely by the natural resource deal.

We can see a series of coincidences and we argue that oil played a role in Sri Lanka, maybe only a secondary one, but not completely marginal. Norway is our first indicator; the Nordic country didn’t though it could provide more transparency on its conduct, but had clearly a vested interest in the peace process in relation to the oil reserve. China and India had additional reasons to back

Anti-lankan protest led by politician and activist Vaiko in Tamil Nadu.Photo onlanka.com

Anti-lankan protest led by politician and activist Vaiko in Tamil Nadu.
Photo onlanka.com

Colombo, but it was a clever and opportune gift from Rajapaksa to offer natural resources in exchange of their help. In particular it could have represent the convincing point for New Delhi, to intervene without hesitation. India has oil operations on its side of the Strait, and the idea of leaving oil reserve in the hands of the LTTE or China alone could have been the decisive argument to make move. The energy sector is more vital and strategic for India that any other alliance of convenience between China and Sri Lanka.

If you think that oil doesn’t play any role in conflicts around the globe, then you can ignore our thesis. On the other hand, if you assume that natural resources are too important in contemporary geopolitical scenarios, and so are always involved, maybe to different extent, you may be tempted to spend more time on this hypothesis.