``It is difficult to see CP as a movement without a radical change in the business environment and attitudes of the top management. This shift in attitude should begin in the board rooms and not at the implementation level,'' said K P Niyati, head, Environment Management, Confederation of Indian Industry (CII), at the culmination of the session on CP and Industry.
The session also threw up questions about business environment and the corporate response to the need for implementing cleaner production measures. These included:
Can economicadvantage alone push CP?C K Varshney of the New Delhi-based National Academic Director Centre for Research on Environment Ecology and Development feels that the economic benefits of cleaner production have not been sufficiently highlighted in corporate circles. ``The point to be drilled into the heads of CEOs is that at the end of the day CP adds to your profitability. The fact that it also frees businesses from the clutches of the pollution control bureaucracy is a bonus. The moment they realise the economic viability and benefits of cost minimisation which emerge from cleaner production, the CEOs will themselves make sure it is implemented,'' he says.
Surya Prakash Chandak, director, National Cleaner Production Centre, stressed on CP promotion and development through establishment of demonstration plants, training, networking and policy formulations and establishment of pressure points through NGOs working in the field.
Edward Clarence-Smith from the CP and environment management branch of UNIDO,Vienna, feels demonstration projects are the only way of promoting cleaner technologies. ``The demonstration projects can start a multiplier effect through waste management centres and state level cleaner production centres. To this end, the Delhi-based NCPC opened regional cleaner production centres in Gujarat and Karnataka earlier this year. That is a step in the right direction,'' he feels.
Ari Huhtala, project manager (cleaner production financing) with UNEP, Paris, stressed on the importance of creating bankable investment proposals to help small and medium scale enterprises get funds for modernisation.The small scale sector is a special feature of the Indian economy and consists of more than 3 million units. Though they account for over 40 per cent of the industrial output in value terms, it is estimated that pollution generated by them is much more than their share of industrial production.
Deepak Bhatia, managing director of the Kanpur-based Monde Apparels, complained of the low level of awarenessabout the benefits of CP, among small and medium scale enterprises. ``The first apprehension they have is about finance. Even if they overcome it, they don't know what measures to adopt. For us, manufacturing processes are common to a cluster of industries and new technologies should be demonstrated to small entrepreneurs to increase their acceptability,'' he says.
To enhance its awareness, CP needs to be a compulsory component of existing curricula in schools and colleges, according to K R Ranganathan, member secretary, Loss of Ecology (Prevention and Payments of Compensation) Authority, Chennai. ``Educational institutions should integrate cleaner production in the ongoing courses and not as additional subjects,'' said Ranganathan.
The session on CP and institutions saw a consensus on the creation of an environmental services and development fund to support cleaner production centres at the state level. ``The resources for this could come from the Ministry of Environment and Forests and it could have acorpus of Rs 100 crore to begin with,'' suggested P M Belliappa, UN expert on environment.
The level of pollution created by Indian industries per unit of output and its impact on the environment is much higher than in the developed world. Besides improving their competitiveness, the biggest challenge Indian industry faces is environmental performance.
In the absence of effective enforcement by pollution control authorities, and lack of funds to install treatment systems, small industrialists take recourse to cheaper production measures, putting effectiveness on the back burner. CP reduces the generation of pollutants through use of techniques like equipment modification, process optimisation, input material substitution, recycling, technology change and product reformulation. But the cost of technology change is the biggest stumbling block for most SMEs.
Says Girish Mahajan, assistant vice president, ICICI Limited, ``Most of the small and medium scale industrialists are rich in personal assets butmaintain their balance sheets very shoddily. This mars their credit worthiness. Here creation of bankable CP proposals, after verifying the technical, financial and legal aspects of the project is needed. ICICI also pays a lot of attention to environmental clearances from state pollution control boards. We also keep track of the implementation of the project through quarterly reports on its physical progress,'' says Mahajan.
But ultimately, it may be the customer pull factor which may hasten the implementation of CP measures. ``The effort made by UNEP to establish a linkage between ISO 14001 and CP measures may eventually achieve that,'' feels Niyati.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.