1

BLACKSMITH INSTITUTE/ POLLUTED PLACES I. Semi-annual Progress Report A. Subproject Information

1. Subproject Title: Polluted Places India 2. Implementing Organization: Polluted Places/ Blacksmith Institute 3. Subproject Start Date: January 1st, 2005 4. Planned/Expected Completion Date: January 15, 2007 5. Reporting Period: January 2005 – June 2005.

B. Activity Summary During the first six months of the Polluted Places India project to date, Blacksmith Institute has outperformed in all areas of its planned work. In summary with respect to this project in India, Blacksmith Institute has:

• received 115 nominations; • reviewed 48 of the nominated sites through the Technical Advisory Board; • conducted Initial Site Assessment studies at nineteen sites; • planned five additional site assessments in July; • initiated pilot interventions at four sites; • begun implementation for a pilot remediation project at one site.

Throughout this period, Blacksmith Institute, in coordination with the Asian Development Bank, has been working with the Ministry of Forests and Environment, the Central Pollution Control Board, various State Pollution Control Boards, and the World Bank, who are planning a project that will provide remediation expenses to the Government of India for sites identified by this project. Initiation of this World Bank project has been triggered in part by this ADB PEP project. The following activities have been undertaken in the first six months of this project: Call for India Proposals: Blacksmith Institute published a call for proposals in the April 15th issue of the Down to Earth magazine, which is a fortnightly publication dedicated to science and environmental issues in India. We have received more than a dozen proposals to date. Currently we are in the process of investigating existing pollution problems in these nominated sites and evaluating whether they meet our criteria. If they do meet our specifications then the site will be visited by Blacksmith representatives and Initial Site Assessments conducted. Nominations: Over a dozen sites have been nominated in response to Blacksmith Institute’s call for proposals. The state pollution control board authorities in the states of Gujarat, Andhra Pradesh and West Bengal also recommended visits to polluted sites in their respective

2

Workers standing atop chromium-soaked leather trimmings in Aruputo

states. Other sites have come to our attention through the NGO and banking communities, and through independent research. In total, 115 sites have been nominated so far out of which 48 sites have been reviewed by the Technical Advisory Board. They have recommended site visits to nineteen of these sites. Five of the nominated sites were visited in January of this year and eleven sites were visited in May. Additional sites in the states of Tamil Nadu, Andhra Pradesh and Maharashtra are scheduled to be visited in July. Initial Site Assessments: In January of 2005, Blacksmith staff visited the following sites in India:

• Edulabad, Andhra Pradesh: Blacksmith Institute is awaiting laboratory results for water samples taken from a local lake Lakshminarayana Chervu in Edulabad. Residents here claim that water in the lake has been tainted by untreated industrial effluents in addition to sewage waste. Future course of action will depend on the outcome of the laboratory tests that will determine if there are any significant health risks and an identifiable pathway into the population.

• Aruputo Village, Kolkata, West Bengal: Chromium-treated scrap leather

trimmings from tanneries around the area are processed in 40 or so unlicensed facilities in Aruputo Village. Wastewater from this process is dumped into open water bodies, used as a drinking water resource by residents. The processed product is sold as fertilizers to the tea gardens in northern West Bengal. Further studies are needed to determine the existence of contamination and its extent, which are planned to be undertaken by the West Bengal Pollution Control Board.

• Tangra, West Bengal: Tangra in Kolkata was dominated by leather tanneries

until a Supreme Court order forced them to relocate. This legacy site is suspected to be contaminated with hexavalent chromium and will warrant further studies to establish the existence of pollution if any and the extent of contamination. The West Bengal Pollution Control Board is managing this site and no further action by Blacksmith Institute is recommended.

• Picnic Gardens/ Tiljala, Kolkata, West Bengal: The secondary lead smelters at

Picnic Gardens are a major health concern as they potentially pose a substantial health risk to the local population, especially children. The lead batteries are melted in outdated furnaces and lead scrap and battery casings are stored inadequately in the open. Obvious signs of contamination can be observed in and around the smelters. Further study and costing is required for this site and Blacksmith Institute is in the process of initiating a pilot intervention to undertake this work.

3

Discarded battery casings at the Picnic Garden lead smelter.

Illegal dumping of hazardous wastes at the Nandesari Industrial area.

Chromium –contaminated wastes from Hema Chemicals was used for building houses and paving pathways in nearby villages.

• Howrah, West Bengal: Howrah foundry cluster is

one of the oldest and largest cast iron foundry centers in India. The West Bengal Pollution Control Board is very involved in monitoring the pollution stemming from the foundries and their controls seems to be effective. Plans to relocate the foundries are underway. The Initial Site Assessment by Blacksmith Institute concluded no further action was necessary.

In May, additional sites were visited in the states of Gujarat and Tamil Nadu. Brief descriptions of the sites are provided below.

• Nandesari, Baroda, Gujarat: The Nandesari Industrial Estates is comprised of around 1200 small and large scale industries. There are estimated to be around 10-15 illegal hazardous waste dumpsites in and around the estates. The Mini River which passes through the estates was used for accepting wastewater from industries prior to the implementation of hazardous waste laws in 1989 and the sediment is heavily contaminated with toxins. During the rainy season, water from this canal drains directly into the drinking water supply for the city of Baroda. This site will now be assessed for remediation costing.

• Hema Chemicals, Baroda, Gujarat: Hema

Chemicals manufactured chromium salts for use in tanneries from 1965- 2001. During its years of operation the company is believed to have dumped several thousand tons of chromium waste within its premises and in the vicinity. Illegal dumping at this site has spurred the largest Public Interest Litigation in Indian history. The next step is to conduct a health assessment study that will be undertaken in collaboration with the National Institute of Occupational Health.

4

Toxic sludge in a canal in Gujarat

• Ahmedabad, Gujarat: The Pirana/ Narol Industrial area is mostly comprised of textile industries. Wastewater from these industries goes to the sewage treatment plant from where after treatment it drains into the Sabarmati River. Heavy metal and organic contamination is suspected here. There is no clearly identifiable pathway into the population and no further action is recommended at this time.

• Baroda, Gujarat: A 54 kilometer pipeline carries treated wastewater from three

large-scale enterprises: Gujarat State Fertilizers and Chemicals, IOCL Gujarat Refinery and Indian Petrochemicals Ltd from Baroda to the sea. Water from this canal is used for irrigation by farmers from

6-7 villages that fall along its length. There may be possible contamination of food crops irrigated from the waters of this canal. Potential human health risks are low and no further action is recommended.

• Ranipet, Tamil Nadu: A legacy industry,

Tamil Nadu Chromates and Chemicals, lies about 120 kilometers southwest of about 120 kilometers southwest of

Chennai. An estimated 150,000 tons of chromate sludge lies untreated in its premises. Leaching of these wastes has contaminated the groundwater. There are around 150 small-scale tanneries operating here and their effluents are polluting the Palar River that lies five kilometers downstream. This site will probably be chosen for a trial remediation project under the PEP grant.

• Palar River Basin, Tamil Nadu: The Palar River Basin encompasses an area of

18,300 square kilometers. The river is seasonal and for the most part of the year is dry. Tannery, dye and chemical industry effluents have reportedly percolated into the groundwater, which is used as a drinking water resource. The state government is actively involved in trying to reduce the inflow of industrial waste by installing effluent treatment plants and upgrading existing ones. Further monitoring is required.

• Amlakhadi, Gujarat: Amlakhadi is a tributary of the Narmada River. The

Bharauch Enviro Aqua Infrastructure Ltd. collects wastewater from three industrial estates (Ankleshwar GIDC, Jhagadia GIDC and Panoli GIDC) and discharges it into the Amlakhadi after treatment. However dark red water can be observed being discharged bringing into question the effectiveness of effluent treatment processes. The Gujarat Pollution Control Board is monitoring the situation. No further action is required.

Purple-tinged effluents in the Amlakhadi River

5

Hazardous waste dumped at Muthia Village.

• Damanganga River, Vapi, Gujarat: Damanganga River receives most of the effluent load from active industries in the Vapi Industrial Estate. It is also a major source of drinking water. A lot of health problems have been reported in people living around the Vapi industrial area that may be linked to pollution from industries within the estate. This site requires further monitoring.

• Kharicut Canal, Vatva, Gujarat: The Kharicut canal is about 46 kilometers in

length running from the Naroda GIDC to the Sabarmati River. Water in the canal is a dark-red color. It receives waste from three industrial estates: Naroda GIDC, Odhav GIDC and the Vatva GIDC. This canal needs capital work to line most of its length. The cost of this venture needs to be estimated.

• Muthia Village, Naroda, Gujarat: Several

thousand tons of hazardous wastes have been dumped in the village mostly from dyeing enterprises. Water drawn from a local well was yellow-colored. No cleanup activity has been initiated so far. Costing analysis needs to be undertaken.

• River Par, Atul, Gujarat: Par River is a drinking water resource for several

villages including the Umarsadi and Haria villages. Earlier reports indicate high levels of lead in the water. The river receives industrial waste from the Atul complex and several tons of sludge has accumulated along the river banks. More studies are required to determine the nature of the contamination and its extent.

Detailed initial site assessment reports are provided in Appendix II. Additional site assessments are underway while this report is in preparation in Tamil Nadu, Andhra Pradesh and Maharashtra.

6

Preliminary Intervention Design and Remediation: Blacksmith Institute has initiated four pilot-scale interventions at the following sites: Daurala, Meerut, Uttar Pradesh: Daurala, a suburb of Meerut city, is home to large industries like the Daurala Sugar Works and Daurala Organics. Daurala Sugar Works is a distillery and Daurala Organics manufactures various drugs and pesticide intermediaries. Although the villagers living in the vicinity of these enterprises suspect that they are the source for these toxins in the groundwater, there is no clear indication that these particular industries are responsible. Further testing and monitoring of these industries waste is required to reach a definite conclusion about the responsible party. Water drawn from wells has a yellowish tinge and Blacksmith Institute staff observed black effluents in the rice fields. Daurala villagers reported that they have discontinued use of water from four out of the twelve wells at their disposal because of apparent contamination. Daurala residents complained of increased incidence of bronchial asthma, gastrointestinal diseases and throat cancer. They estimated that there were as many as 35 deaths from throat cancer in 2003 and at least 300 people severely ill with cancer. Tests conducted by the Center for Science and Environment in Delhi revealed that groundwater samples collected from the locality were contaminated with heavy metals. Much of the drinking water supplied in Meerut has been found unfit for human consumption. Blacksmith Institute has provided support to the Janhit Foundation, an NGO which addresses pollution and other environmental issues in Meerut, to undertake studies to identify pollutants in the groundwater and their specific sources. Picnic Gardens, Kolkata There are around 34 small-scale lead smelters in Tiljala, an eastern suburb of Kolkata. The smelters here still employ primitive technology and have little or no pollution control equipment in place. To make matters worse they are located in close proximity to dense residential areas. Studies conducted in the area by the School of Environmental Studies in Kolkata reveal that there are high levels of lead in the soil and dust. Obvious signs of contamination can be observed around the smelters and what appears to be lead dioxide covers the area. A study conducted by a local scientific institution has indicated high lead content in the blood stream and lungs in children living close by. Blacksmith Institute has met with the West Bengal Pollution Control Board authorities to discuss probable solutions to combat the smelter pollution. Together we decided that further health studies need to be conducted in order to determine the extent of health risk to the local population. Preliminary studies will include water, soil and drinking water analysis, testing of metals in vegetation and testing blood lead levels in children. Geography of the area will be mapped to reflect the various degrees of contamination and

7

a plan developed to relocate the smelters to a more suitable location if these studies reveal a need to do so. The Energy Research Institute has agreed to take up a blood lead study in the areas affected by the smelter pollution. Hema Chemicals, Baroda: Hema Chemicals, a chromium sulfate manufacturing unit in the Gorwa industrial site of Vadodara (a city about 115 km south of Ahmedabad) was functional from 1965-2001. During its years of operation the company disposed 77,000 tons (estimated by the Gujarat Pollution Control Board) of toxic chromium waste in areas neighboring the factory. The laborers working in the factory, unaware of its potential health risks, took the chromium-rich sludge to fill up low-lying ditches in the neighborhood. They also mixed it with cement to construct their houses and spread it around the boundaries of surrounding fields. There is no definitive account of how much toxic chromium waste has been disposed of in this fashion between 1965 and1989. The abandoned plant site itself comprises about 15,000 square feet and is highly contaminated with chromate salts. Yellow discoloration is obvious throughout the site and on building structures. This site clearly is in need of remediation. The illegal dumping areas may comprise as much as seven kilometers of fill along roads in the vicinity of the factory. A study of this region is being conducted (under the direction of the GPCB) by the Delhi-based National Productivity Council. Results of the study should be available in June of 2005. Illegal dumping at this site has spurred the largest Public Interest Litigation in Indian history as the GPCB has sued the owner of this facility for 17 crore rupees (approx. US $ 4 million). The case is under appeal in the Supreme Court at this moment. Blacksmith Institute has met with officials at the Gujarat Pollution Control Board to discuss alternatives to resolve this problem. A study of blood chromium levels is required to determine how extensive the problem is. This study will be conducted by the National Institute of Occupational Health that has substantial expertise in this field and will be co-financed by the Blacksmith Institute and the Gujarat Pollution Control Board. Kanpur, Uttar Pradesh: Kanpur is the largest and most industrialized city in Uttar Pradesh. Jajmau that lies in the eastern part of the city has a cluster of more than 350 tanneries. Toxic wastes from the tanneries have contaminated the groundwater and found their way into the water supply of Kanpur. Blacksmith Institute is working with the Central Pollution Control Board and Ecocycle to implement the first pilot-scale groundwater remediation project in India using biotechnology, details of which are provided below.

8

Remediation Plans Blacksmith Institute has its first trial implementation site to remediate hexavalent chromium in India, specifically in the groundwater of Kanpur. The Central Pollution Control Board (CPCB) authorities in Kanpur and Ecocycle will partner to implement this pilot project. Blacksmith Institute has been supporting CPCB Kanpur to conduct initial groundwater studies in Kanpur. Regular monitoring of bore wells has revealed that hexavalent chromium has leached into groundwater and been penetrating deeper underground through time. Hexavalent chromium has been detected in concentrations ranging from 6 mg/liter up to 18 mg/liter. Data is available for readings taken from 15-20 meters depth for an area encompassing 2-3 square kilometers. Detailed information about the vertical distribution of the hexavalent chromium in the bore-wells, hydrogeology of the area, water table elevation, water table elevation and GPS latitude/longitude maps is available. Ecocycle Corporation is an environmental service firm providing environmentally friendly products & services by integrating biotechnology and chemical engineering. They have developed EDC-M, a biostimulating agent for the remediation of hexavalent chromium contaminated sites. This technology has been successfully implemented in Japan and monitoring studies over a year has confirmed that the remediation is long lasting. The process consists of injecting this biostimulant EDC-M, into the contaminated groundwater. Native microbes capable of reducing hexavalent chromium to trivalent form are stimulated. Trivalent chromium is insoluble in water and gets precipitated out. Thus the groundwater is free of hexavalent chromium. The reduction process is irreversible under normal groundwater conditions. A teleconference meeting was held between Blacksmith Institute, Ecocycle and CPCB Kanpur representatives on June 27th, 2005 to discuss a pilot-scale groundwater remediation project in Kanpur. The meeting was a success and we expect to implement remediation activities later on this year. This project will be the first of its kind in India and will also serve as an example for the proposed World Bank project to conduct extensive remediation of multiple contaminated sites. Ecocycle Corporation will be implementing the remediation process and the Central Pollution Control Board will be responsible for monitoring the situation over a period of time. India suffers acutely from water shortages due to groundwater contamination from industrial sources, which has severe human health consequences. The successful implementation of this bioremediation technology could hold the key to solving one of India’s major environmental problems that has plagued the nation for decades. Among the 16 sites visited, we have prioritized a few other sites for further investigative studies based on our impressions during the site visit. The short-listed sites include but are not limited to:

• Nandesari, Gujarat; • Ranipet, Tamil Nadu.

9

We are currently in discussions with the state governments about the feasibility of conducting trial remediation projects at these sites. Nandesari, Gujarat: Many villages around the Nandesari Industrial Estates have been used as random dumping grounds for hazardous wastes. The water drawn from wells and soil in several places are discolored from leaching or dumping of industrial wastes. Soil and water samples have been collected from such locations and sent for laboratory analysis to determine the levels of contaminants present and then design a remediation strategy based on the findings. Ranipet, Tamil Nadu: A legacy industry in Ranipet is believed to contain 150,000 tons of untreated chromate sludge in its premises and hexavalent chromium has leached into the groundwater. Clusters of small-scale tanneries also discharge untreated effluents into the waterways. This site would be ideal for replicating the pilot-scale remediation project in Kanpur pending successful completion. Additional soil and water samples have been collected from other sites visited and sent for analysis to laboratories in Delhi. Based on the results, Blacksmith Institute will decide whether the pollution poses a significant threat to human health and whether it would be feasible to undertake remediation activities there as stipulated in the Blacksmith-ADB agreement. Sites selected for remediation must demonstrate significant health hazard to the community, have low remediation costs and be attainable using simple methodologies. Remediation activities undertaken at the sites will serve as pilot programs in accomplishing remediation in other sites in similar circumstances around the country. After identification of such sites Blacksmith Institute will send an expert with a great deal of experience in the field of remediation and remediation costing, to these sites to conduct a costing analysis. This will serve as a guideline for Blacksmith Institute to design an effective and long lasting remediation design. C. Performance: The Blacksmith project under the ADB PEP grant has been progressing as outlined in the Work Plan from January to June, 2005 listed in Appendix I of the proposal. Our achievements so far have been:

• World Bank Coordination: The Ministry of Environment and Forests, and

Government of India have requested the World Bank to design a project in excess of $ 110 million to conduct, amongst other things, remediation of polluted sites that we have identified in India. The site assessment work conducted under the ADB PEP grant is being coordinated with senior World Bank staff and local government agencies in India. In addition there are opportunities for ADB to further participate in remediation work under this World Bank venture through co-financing.

10

• Hiring of Blacksmith staff in Delhi: In January of this year, Promila Sharma joined the Blacksmith team as the India Coordinator. She has extensive experience working in the environmental field in India and will provide program oversight for all Blacksmith projects initiated under the ADB Poverty and Environment Program grant. She will also be involved in conducting site assessments in nominated sites throughout the country, and meeting with the Central and State Pollution Control Board authorities as required. Blacksmith Institute has also hired additional staff to conduct site assessments. Dr. Suneet Dabke has joined the Blacksmith team as a consultant. He holds a PhD degree in biotechnology and has five years of extensive experience in the environmental field in India.

• Collection of site nominations: Blacksmith Institute received many nominations

in response to the call for proposals in the April issue of the Down to Earth magazine. Additional nominations were accrued from various State Pollution Control Board authorities during our meetings with them. Other sites have been nominated by various NGO’s and through independent research.

• Initial Site Assessment Studies: Sixteen site assessments have been conducted so

far this year. Detailed site reports are attached in Appendix II. This aspect of our project has gone exceedingly well as we had targeted only 4-5 site assessments in the period from January to June 2005 according to our original proposal submitted to ADB.

In January Blacksmith representatives visited nominated sites in the states of Andhra Pradesh and West Bengal where they met with the State Pollution Control Board authorities. In West Bengal the Howrah foundry cluster had been recommended for a site visit by the Technical Advisory Board. A site visit there revealed that the situation was not as bad as originally portrayed. The West Bengal Board is actively monitoring the foundries and there are plans for relocation. The Pollution Control Board recommended several additional sites on their environmental priority list that were suspected of having adverse health impacts to a significant population. Lead smelters on the outskirts of Kolkata pose significant health hazards to the population living nearby. The smelters employ outdated technology and do not have adequate pollution control measures in place. The lead smelter we visited in Picnic Gardens/Tiljala is located right next to a water body and a white dust, possibly lead dust, envelopes everything in its vicinity.

In May Dr. Jack Caravanos, a technical advisory board member accompanied Blacksmith staff in conducting Initial Site Assessments in the states of Gujarat and Tamil Nadu. Dr. Caravanos is the Director of the MS/MPH program in Environmental and Occupational Health Sciences at Hunter College, New York. He holds certification in industrial hygiene (CIH) and industrial safety (CSP) and prides himself as being an “environmental health practitioner”. He specializes in

11

lead poisoning, mold contamination, asbestos and community environmental risks. Dr. Suneet Dabke also accompanied our staff at many of these visits.

The golden corridor of Gujarat is an industrial belt with thousands of industries that were indiscriminately dumping toxic and hazardous waste prior to passage of environmental regulations in 1989. Illegal hazardous waste dumping is very much prevalent in these estates as can be seen in the photographs taken during our visit there. Visible proof of pollution can be seen in the colored water flowing in rivers and colored water drawn from wells. Soil and water samples have been collected from the sites visited and sent to laboratories for testing to determine the presence of contaminants if any and what health hazards they pose to the population exposed to it. A summary of the sites visited can be found in the beginning of this document and detailed site assessments have been attached in Appendix II.

The state of Tamil Nadu is home to India’s largest tannery cluster. Small-scale tanneries are believed to be responsible for contaminating the waterways with hexavalent chromium. An estimated 150,000 tons of chromate sludge lies untreated in the premises of a legacy industry in Ranipet.

Five more assessment studies were conducted in Gujarat in late May. The rivers in Gujarat receive most of the pollutant load from active industries within the industrial estates. The common effluent treatment plants at these estates are not equipped to deal with heavy metals and hazardous waste. Upgrading the existing technology may be one option to regulate discharge of partially treated waste into rivers, which people depend on for their drinking water supplies.

Additional field visits are scheduled for July in the states of Tamil Nadu, Andhra Pradesh and Maharashtra. Dr. Caravanos will be accompanying Blacksmith staff to conduct site assessments. Sites recommended for visit by the technical advisory board including villages in Andhra Pradesh that have been severely impacted by pollution from the Patancheru Industrial Estate are scheduled for visit.

• Progress report to ADB: An initial summary report had been submitted to the ADB India office in May of this year for work done from January through April 2005. This report outlines our progress from January through June, 2005.

• Sites chosen for intervention: Preliminary intervention design and remediation

activities were conducted for four sites in this project period. Kanpur has been identified as one of the sites for pilot intervention in the next 6-month period. Kanpur in Uttar Pradesh is well known for its leather industry and tannery effluents have led to severe groundwater contamination. The Central Pollution Control Board discovered a plume of hexavalent chromium in the water supply in a Kanpur neighborhood in 2003. Local residents continue to drink and use water from the contaminated wells. Around 25 villages situated downstream from the tanneries are severely impacted by untreated effluents from the tanneries.

12

• Institutional capacity building: Blacksmith participated in a workshop on strengthening institutions for sustainable growth from analysis to practice in New Delhi in late April. The workshop was jointly organized by the Ministry of Environment and Forests, Government of India and the World Bank. The objective of the workshop was to develop report sharing capacity among various institutions and organizations involved in the environmental field and thus embark on a project for capacity building for industrial pollution management effectively. The pilot remediation projects that will be undertaken by Blacksmith Institute under ADB’s Poverty and Environment Program will serve as the foundation for a much larger venture by the World Bank and other partner organizations.

Part of our objective for this project was to initiate broader scoped remediation projects in India that would facilitate remediation in areas severely impacted by environmental pollution. The proposed World Bank project seeks to address and remediate pollution problems in the states of Gujarat, Andhra Pradesh, Maharashtra, Orissa and Tamil Nadu.

13

D. Financial summary

1. Expenditures in the period (January-June, 2005)

Item ADB BI Total Staff expenses Local staff

Local travel

Admin. & Overhead

NYC project oversight Staff Admin. & Overhead International travel

2,400 3,728.93 1,206.52

2,400 2,843.33 1,564.87 8,500 5,638.29 15,767.5

4,800 6,572.26 2,771.39 8,500 5,638.29 15,767.5

Implementation Costs 16 Site assessments Field Visits Local meetings Sampling Lab. Analysis Pilot intervention & Remediation

4,055.81 1,325.38 2,650.89 7,719.48 15,654

1,829.08 1,482.73 3,873.27 2,922

4,055.81 3,154.46 4,133.62 11,592.75 18,576

TOTAL 38,741.01 46,821.07 85,562.08

14

2. Expenditure planned for the next period (July-December, 2005)

Item ADB BI Total Staff expenses Local staff

Local travel

Admin. & Overhead

NYC project oversight Staff Admin. & Overhead International travel

3,000 3,800

3,000 2,200 3,000 8,500 6,000 10,000

6,000 6,000 3,000 8,500 6,000 10,000

Implementation Costs 5 Site assessments Field Visits Local meetings Sampling Lab. Analysis Pilot intervention & Remediation

2,000 500 1,000 5,000 45,000 26,000

7,500 12,500

2,000 500 1,000 5,000 52,500 38,500

TOTAL 86,300 52,700 139,000