Bhopal Gas Tragedy a Case Study Essay Example
Bhopal Gas Tragedy a Case Study Essay Example

Bhopal Gas Tragedy a Case Study Essay Example

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  • Pages: 11 (2759 words)
  • Published: December 26, 2017
  • Type: Essay
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The Indian government's 1948 Resolution on Industrial Policy expressed a preference for Indian enterprise, while also being open to collaboration with foreign companies. The government recognized that foreign capital and industrial knowledge could aid in rapid industrialization, but emphasized the need for carefully regulating their participation in Indian industry for the national interest. Legislation was subsequently introduced to limit foreign shareholding in Indian firms and promote collaboration only when foreigners possessed technology unavailable in India. The government aimed to acquire technology under specific terms, but faced challenges as foreign companies were unwilling to make deals with Indian firms on those terms, including importing at the lowest cost and avoiding paying license fees for more than five years.The Indian government implemented a policy requiring that subsidiaries of foreign companies have Indian nat

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ionals as part-owners and be trained in all aspects of firm operations and technologies. Additionally, any business using foreign technology must obtain a license from the state and the government must approve the type and duration of employment for foreigners hired as managers, technical specialists, or workers. The Company and City Union Carbide (India) Limited (CULL) were operating in India even before Independence, primarily manufacturing and selling dry cell batteries under the "Eveready" trademark also used in the USA by Union Carbide. CULL expanded into producing fertilizers and pesticides in the 1900s as the government encouraged local production to supply farmers with the chemicals needed to raise new hybrid types of rice, wheat, and cotton. This was due to the serious food shortages India suffered in the early 1900s because of drought, and the new hybrid crops offered drought-resistance that appealed to the government, which

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was concerned with feeding a growing population and increasing cotton supply for the growing textile industry. When CULL established its Agricultural Products Division in the mid-1900s, it was located in Chamber near Bombay [Iambi], an area known as "gas chamber" by residents due to extensive air pollution.The central and state governments of Madhya Pradesh were eager to develop industry in the relatively underdeveloped region of Papal. Therefore, Scull's proposal for a chemical plant and an agricultural products R&D center received a warm welcome, with the state government providing land for the chemical plant on a 99-year lease. This led to an increase in employment opportunities, benefitting both higher-skilled technical workers and lower-level employees. CULL's executives also maintained excellent relations with local political leaders. During the sass and sass, Papal experienced rapid growth due to people from the surrounding rural areas seeking better opportunities. However, development was unplanned, resulting in the creation of "headhunts" - narrow strips of makeshift shelters with mud walls and sheet metal or wooden roofs, separated by alleys along already-existing roads.Inhabitants of Papal frequently lacked basic infrastructure such as piped water, sewage, and reliable electricity, and often had to tap illegally into existing power lines. Access to public transportation was also a challenge, even in the more established parts of town. Reliable phone service was limited to government offices, with only approximately 10,000 phones available throughout the city. In 1984, there were only 1800 hospital beds and 300 doctors available to the entire population. Despite these challenges, the area surrounding the CULL plant began to attract newcomers seeking employment as other industrial concerns moved in and brought with them more reliable electricity.

However, this also made the area more attractive to squatters and those posing as landowners, who "rented" huts to others on state-owned land that was less likely to be reclaimed than private land. Although city plans were developed in 1958-59 and 1962-63, they were never carried out.In 1975, the Madhya Pradesh government introduced a new Master Plan for Papal. Among other things, it established a district for "hazardous industry" about 15 miles from the center of town and designated areas for residential and other developments. CULL had been producing pesticides since 1969. In October 1975, the company received a license from the central government to produce up to 5,000 tons of a carbonyl pesticide called "SEVEN." This required new facilities and more complicated production processes. Nevertheless, the state approved both current activity and new construction at CULL's existing location. By 1981, the population of Papal had grown to approximately 896,000 people. In April 1984, the state government gave in to settlements near the CULL plant by granting certificates confirming squatters' ownership of approximately 50 square meters of land where their hut stood.

The decision to allow settlers to remain in the area was motivated by several factors, including efforts to secure electoral support, the inability to relocate the settlers, and a desire to decrease the amount of extortion experienced by the settlers. Despite the fact that many people in the area had illegally tapped into the electric grid, there were no plans by the state or city government to extend piped water or sewer systems. Moreover, there were no attempts to address significant industrial and residential pollution in nearby lakes.

The CULL plant initially succeeded

in producing high-concentrate versions of fertilizers and pesticides for customer use. However, efforts to transition to full-scale chemical production encountered numerous challenges. CULL had intended to produce local regions of Union Carbide's carbonyl pesticides using an alpha-naphtha process developed by its chemists in 1969. However, scaling up production proved to be much more difficult than anticipated. The first alpha-naphtha unit failed shortly after its completion in 1978, and an additional $2 million was spent on its reconstruction. Unfortunately, the reconstructed unit also experienced failure not long after its completion in 1981.

Union Carbide recommended CULL to also import methyl assassinate in addition to alpha-naphtha after considering production costs in 1981. However, the Indian government rejected the import application for MIMIC and set a deadline of January 1985 for alpha-naphtha imports as they were expecting local production. This deadline established a tight timeframe to make the process work. As construction of the methyl assassinate unit was completing by 1982, CULL and Union Carbide both realized that the plant was not economically viable due to changes in the market. Local demand for Scull's pesticides decreased significantly after 1977, and new generation carbonate pesticides under development in the USA and Western Europe appeared likely to make "SEVEN" obsolete at the upper end of the market. Although the Papal plant earned a modest profit in 1981, it operated below capacity and at a loss afterwards. Discussions of various alternatives between CULL and Union Carbide between 1982-84 led CULL to agree with Union Carbide's suggestions for selling all or most of the plant. The plant was operating at about 1/5 of its capacity by fall 1984.CULL and Union Carbide discussed the

future of the Papal plant while experiencing losses. The Papal methyl assassin production unit was trained at Union Carbide's West Virginia plant from 1981-82. As the plant's prospects declined, skilled employees left for better job opportunities and were replaced with less experienced workers. Although production volumes were low, the local labor unions believed that cuts to the workforce were excessive. The workforce in the methyl assassin unit was reduced from 3 supervisors and 12 workers to 1 supervisor and 6 workers, as recommended by Union Carbide. Other areas of the plant were also affected by reductions, leading to ongoing tension between labor and management since a gas leak in 1981. In late 1984, plant operations aimed to use up existing chemical stocks for sale of the plant. In October of that year, the remaining phosgene and amphetamine were combined to produce about 62 tons of methyl assassin, with 22 tons stored in Tank 611 and the rest in Tank 610. However, plans for drawing off one ton of MIMIC at a time for SEVIN batches were disrupted.Following news of Prime Minister Nadir Gandhi's assassination by Sikh bodyguards, rioting broke out in various parts of Papal on October 31st, resulting in a curfew being imposed by city authorities for several weeks. This caused difficulties for the second and third shift workers at the plant, reducing activity for much of November. Additionally, production was briefly hampered due to the inability to pressurize Tank 610, but resumed when operations shifted to drawing from Tank 611. On December 2nd, the second shift supervisor ordered workers to perform a periodic washing of pipes in the MIMIC storage area to control

corrosion, which began around 9:30 pm. However, most of the safety systems were not functioning properly at this time. The vent scrubber which was designed to neutralize gas leaks through the vent, was on standby and appeared ready for operation. The flare lacked sufficient capacity to deal with major leaks as it was shut down a few weeks prior due to placement of a corroded pipe. All relief pipes were directly connected to the gas vent scrubber. The refrigeration system that was designed to keep MIMIC storage tanks cool had been turned off several months before and the Freon drawn off for use elsewhere in the plant.

The firewater spraying systems were operational but failed to reach the top of the flare stack. Meanwhile, the high-pressure escape valve functioned as intended by releasing gas to the vent or flare when the tank pressure exceeded 40 SSI. Although the washing process proceeded despite the absence of a slip blind and blockage in one or two of the bleeder valves, a worker noticed and reported the problem. Nevertheless, water continued to back up and enter Tank 610, passing through an open predestination valve and partly-open isolation valve that should have been closed. Initially, the control room pressure indicator showed a normal increase of Tank 610's pressure from 2 SSI to 25 SSI. But the workers only became concerned around 11:30 pm upon detecting the smell of gas.

During their regular 11am tea break, workers discussed a small leak that Nas had found and set up a water spray to neutralize it. Pressure slowly built up from 25 to 30 SSI on the control room indicator at 12:15am,

but by 12:30am it had reached 55 SSI, surpassing operational limits and gauge error. The control room operator checked the gauges on the tanks, heard a relief valve pop, and felt heat through the concrete covering them. Upon returning to the control room to engage the stack scrubber, the caustic soda failed to flow and a large cloud of gas escaped from the vent stack. The plant supervisor was informed of the problem at about 12:40am and alarm sirens were sounded, but were later shut off. Efforts to transfer liquid MIMIC to another tank failed due to a misunderstanding about its emptiness and attempts to neutralize the gas with water also failed as the spray could not reach the top of the vent stack. The gas leaked for about 2 hours, with an estimated amount of 40 tons escaping. Around 1am, residents in nearby areas began to smell the gas but received no clear instructions on what to do, causing panic and people began fleeing.The Papal police did little to assist after the leak, and medical personnel struggled to treat patients due to a lack of information about the gas and its antidotes. However, an army engineer unit helped evacuate workers from a plant near CULL and transported local residents to hospitals and clinics. Despite efforts to downplay the hazards of the gas by CULL medical officers, the accident resulted in death, injury, and defoliation of trees, soil, and lakes. Estimates vary, but it is believed that the Papal gas cloud caused immediate human deaths ranging from 2000 (according to the official Indian government figure) to 10,000 (according to local activists). The number of people

treated for gas exposure and continuing to suffer ill-health over the next several years has been estimated at 200,000 to 300,000. By 1990, the government of Madhya Pradesh listed individuals who had died from the effects of gas exposure at 3,000. The accident also left thousands too ill to work.Due to limited knowledge regarding the gases released from the plant, the lack of information provided by Union Carbide and CULL, and the uncertain long-term effects of exposure to MIMIC and related gases, medical treatment of survivors was complex. Additionally, it was unclear which toxic chemicals, aside from MIMIC, had poisoned the victims. The deaths caused disruption in family lives, as the surviving members often moved in with relatives. This was particularly difficult for poor families who struggled to provide care for those needing ongoing medical attention. Union Carbide was blamed for the accident both locally and globally, with many believing they were responsible for the plant's condition and staff training. This resulted in an influx of US lawyers seeking clients for lawsuits against Union Carbide and environmentalists highlighting their weak safety record as a symbol of transparency issues in the chemical industry.The West Virginia plant had a series of gas leaks in 1985 and this prompted an investigation by the US government. Criminal and tort charges against Union Carbide and/or its executives were expected in India. However, investors imposed penalties more quickly by lowering the company's credit rating to the lowest investment grade, and dumping shares causing their stake to fall from 65% to 35%. By December 1985, about 30% of the company's stock was owned by rival firms or speculators who were ready for

a hostile takeover. Union Carbide spent years resisting takeover offers by selling off its more profitable divisions to raise funds for legal settlements, while also setting aside money for such payments. In 1994, the company sold its 50.1% stake in CULL to an Indian firm and used the proceeds to establish a hospital for gas victims in Papal. The last remaining parts of Union Carbide were acquired by DOD Chemical Company in 2001. During early 1985, the victims filed lawsuits against both Union Carbide and the Indian government (for failing to regulate effectively) in India and the USA.In March, the Indian Parliament introduced legislation empowering the government to sue on behalf of victims, leading them to file their own lawsuit in US courts. The US courts combined numerous private claims with the government's suit and held a hearing in the Federal District Court for the Southern District of New York. Although settlement negotiations failed due to the Indian government's objection to Union Carbide's compensation offers, both parties disputed over whether to hold trial in Indian or US courts. The Indian government and claimants' lawyers argued that a US hearing would offer more opportunities for class action suits and higher compensation for victims, while Union Carbide advocated for dismissing the case in favor of hearings in Indian courts where events took place. However, the US District court ultimately ruled in favor of holding the lawsuits in India, potentially reflective of respect for Indian legal traditions or a Union Carbide win. Despite this ruling, negotiations for a global settlement involving all cases continued under pressure from India's Supreme Court.A settlement of $470 million, approved by a panel

of the Indian Supreme Court, was ordered to be carried out, despite objections from victim advocates who were seeking $3 billion. The court also required Union Carbide to fund the building of a hospital in Papal to treat surviving victims. However, in 2003, a new dispute arose over what to do with the remaining $390 million that had earned interest between 1989 and the payout. The Indian Supreme Court ordered the government to use the funds for programs that assist victims. The settlement did not address concerns about liability for cleaning up the plant site. Although Union Carbide and CULL conducted some cleanup work under Madhya Pradesh supervision from 1986 to 1998, Scull's successor returned the land to Madhya Pradesh in 1998. Efforts were made to file class action suits in the USA in 1999 and 2007 to compensate victims for later exposure to contamination and clean up of the plant site.

In 1999, a lawsuit was filed which was subsequently rejected in 2004 and 2005. Another lawsuit in 2007 was suspended while awaiting the outcome of appeals against the earlier rulings. DOD Chemical in the USA and Eveready Industries in India, successor companies to Sac's and Scull's, are currently being targeted by transnational campaigns on behalf of the victims. The term "Papal" has come to symbolize corporate greed and indifference for anti-corporate and anti-capitalism activists, while for the victims and their supporters, it represents their government's continuing inaction. The disaster also prompted a widespread need for better regulations addressing chemical plant safety, toxic chemical information, and contingency plans for managing gas leaks. This process began in Western Europe following the 1976 Sevens gas leak

in Italy. In the USA, policy initiatives were more numerous following a significant leak from Union Carbide's MIMIC plant in West Virginia in early 1985 that sent local residents to the hospital. However, there was a weaker reaction in India due to less developed environmental law and weaker citizen environmental movements.

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