Thursday, July 2, 2009

Green stocks flourish despite demand concerns

While green shoots of economic recovery are appearing only tentatively, green stocks are showing no such hesitation.
Since March, clean energy stocks have put together a mighty rally, outpacing the U.S. equities market as a whole. While some see it as a harbinger of increased demand for companies providing cleaner sources of energy, others say it merely reflects the benefit of being on the right side of political trends, thanks to initiatives from China, the United States and other countries.
Three major indexes tracking green energy companies have risen sharply of late. The U.S.-only Wilderhill Clean Energy Index, comprising 51 companies, is up 72 percent since a March 9 low. Its global counterpart, the Wilderhill New Energy Global Index, which tracks 88 companies in 21 countries, is up 66 percent in the same period.
The CleanTech Index, which tracks a broader group, including industries like sustainable agriculture, is up 57 percent. By comparison, the S&P 500 is up 35 percent since hitting a 12-year low on March 9.
Analysts see some of the rally as a corrective recovery after green stocks took a drubbing last year. Hammered by the drop in the price of oil and the credit freeze, the Wilderhill indexes plunged 70 percent, and the Cleantech Index 50 percent, in 2008. The indexes are still off 2007 peaks.
The stocks in question tend to be volatile small-cap and mid-cap names, and so it isn't rare for stocks to move 20 percent in a day -- the biggest company in the domestic Wilderhill index is Applied Materials Inc, worth $14 billion. The stocks are also not widely followed by Wall Street research, causing some swings in pricing.
"When the tape is down one percent, the group is down three percent," says Rob Stone, an analyst at Cowen and Co in Boston.
Stone is bullish on solar stocks, thanks to plenty of initiatives likely to drive demand.
The climate change bill passed by the U.S. House a week ago and now being considered by the Senate could be a boost to all renewables. Even without that, January's U.S. stimulus package allotted $37 billion to clean technology companies, money that should start to flow by the fall.
Large-scale solar power plants are expected to begin construction in coming years in the United States, though the bigger companies, such as First Solar Inc and SunPower Corp, are likely to get most of the business.
China, meanwhile, is set to announce a national feed-in tariff this year that would open a vast market to providers. U.S.-listed shares of Chinese solar companies like Yingli Green Energy Holding Co and Trina Solar Ltd have surged in anticipation.
PRICING PRESSURES
Still, some say the green stocks rally is a house built on the shifting sands of political chance.
"Rather than being judged by consumer preference, these technologies are dependent on temporary political majorities for their viability," says Robert Bradley Jr., chief executive of the Institute of Energy Research, a conservative non-profit.
Cost has also been an issue. Solar is still more expensive than fossil fuels, though Stone points out that polysilicon, the main raw material in photovoltaic solar panels, was trading at $400 a kilogram ($180 a pound) a year ago, and is now $60 a kilogram.

Similarly, the price of solar cells has dropped by about half in the last year as a result of reduced demand and a glut of supply. Analysts eventually hope solar can compete with fossil fuels as an energy source. Prudential Financial has just launched a green commodity index tracking prices of biofuels and other raw materials.
The recession itself is keeping some cautious, and the sharp declines in these stocks in 2008 suggests that investors still cast a fickle eye toward these names. As the industry grows, that belief should change.
"We're in the bullish camp on long-term solar potential," said Matt Schultz, analyst at Battle Road Research of Waltham, Massachusetts.
"Right now, it is in the transition period from growth story to a maturing industry made up of long-term businesses not dependent on government largesse."

Preliminary notification on sanctuary issued

The government has issued gazette notification declaring its intention to constitute the proposed Malabar Wildlife Sanctuary. The sanctuary will consist of 7,421.50 hectares in Chakkittapara and Chembanoda villages of Koyilandy taluk in Kozhikode district. These include the reserve forests of Pannikottoor and Kakkayam and vested forests of Karampara Mala and Olathukki Malavaram and Sankaranpuzha, Athikode and the water-spread area of the Kakkayam reservoir. Out of about 2,200 hectares of Pannikottoor forests, about 400 had been excluded from the sanctuary. Of that, about 115 hectares had been identified for the proposed Tiger Safari Park while 94 hectares had been leased out to the Indian Institute of Spices Research. The balance is fragmented areas. From the vested forests, nearly 557 hectares of ecologically fragile lands have been excluded as disputes over their takeover remain to be settled. The notification said that the richness of biodiversity and conservational significance of the proposed sanctuary area had been identified by various agencies. So, the government found it necessary to declare the area as a wildlife sanctuary for protecting the ecological, faunal, floral, geo-morphological and natural wealth and ensuring its long-term conservation. Since the rights over the said reserve forests and vested forests were yet to be settled, the government had decided to notify the proposed sanctuary under sub-section (1) of Section 18 of the Wildlife (Protection) Act. (This enables the Collector to settle the claims within the area intended to be declared as a sanctuary). Preliminary ecological studies of the forests of Kakkayam by the Malabar Natural History Society have shown that the area was rich in diversity of flora and fauna. Topographically, the area is situated in a plateau rugged with steep hills of the Western Ghats, which suddenly rises from 50 metres to 1,600 metres within the reserve. It was once a good patch of wet evergreen forest, fragmented later by the construction of the Kuttiyadi hydro-electric project, plantations and human settlements. Now, it is the only evergreen patch left in Kozhikode district. Once the area was contiguous with the forests of the Brahmagiri Hills. The forests form the catchments of the Kakkayam and Peruvannamoozhi reservoirs. More than 40 species of mammals have been recorded from the reserve, including three endemic to the Western Ghats. Brown Palm Civet, one of the rarely recorded civet species of the Western Ghats, occurs in the area besides elephants, a small population of lion-tailed macaques and other animals. The area also harbours more than 110 species of birds, including eight endemics, six restricted range species and two globally threatened species (Kerala laughing thrush and Wayanad laughing thrush). It is also the habitat of king cobra, python and many rare and endemic amphibian species. Endangered game fish Mahseer has also been reported from there. In addition 94 species of butterflies (including 14 endemics) and 24 species of dragon flies have been recorded in the region.
Â

Kerala - General Environment

Kerala State is situated between 8 o 8' and 18 o 48' North latitude and 74 o 4' to 77 o 50' East longitude, along the windward side of the Western Ghats of Indian Peninsula . The State is located in the tropical region of Indian Peninsula and extends to an area of about 38863 km 2 , which accounts for about 1. 2 per cent of the total geographical area of the country. The State is bordered by Tamil Nadu State on its South and part of the East, Karnataka State on the North and part of the East, the Lakshadweep Sea on the West and the Indian Ocean along the South. The State has a total coastline of about 560 km and from sea level it rises to about 2694 m above msl.
Because of the location of the State along the windward side of the Western Ghats , it receives an average yearly rainfall of about 3000 mm, and the precipitations in the South-West and North-East Monsoon period, may go even up to 5000 mm, especially in the higher altitudes of Wayanad and Idukki plateaus. The average temperature of the State at 1ow and medium elevations ranging between 0-700 m is about 23 o C. Between 700 - 1400 m above msl, the temperature fluctuates between 16 and 23 o C and in the high altitude areas along the crests of the Western Ghats , it is about 15 o C during the coldest months. Above 1400 m elevation, the average temperature is even less, ranging from 13.5 to 16 o C, and it is in this zone that the shola forests, with similarities in species representation with the temperate Himalayan forests, are distributed in the State.
Physiographically, the terrain has three natural regions namely, lowlands, midland, highlands. A physiographic classification, identified mainly in terms of broad geomorphic surfaces and altitudinal characteristics, is also used in the parlance of geographers (CESS, 1984). It has five physiographic zones, namely, high ranges with elevation above 600 m, foothill zone between 300 to 600 m, upland regions between 100 - 300 m, midland between 20 - 100 m and coastal areas and low land below an altitude of 20 m.
Kerala has 44 perennial rivers, of which three are East flowing and the remaining 41 are emptied into the Lakshadweep Sea , along the western side of the State . Rivers are generally swift flowing having very steep gradients in their higher reaches. Absence of delta formation is characteristic of Kerala rivers. The general drainage pattern of these rivers is dendritic, although at places trellis, sub-parallel and radial occur. The segments of river courses are nearly straight, indicating structural control, coinciding with the prominent lineament directions (NW-SE and NE-SW). As per national norm (Rao, 1979), there are no major rivers in Kerala. The four medium rivers, namely Chaliyar, Bharathapuzha, Periyar and Pamba have a total drainage area of only 8250 km 2 with length 169 km, 209 km, 244 km and 176 km respectively. The length of rest of the rivers varies from 16 km to 130 km, with an average length of 62 km and total drainage area of 19,485 km 2 . The river flow is modulated by about 30 reservoirs, mostly located in highlands (KSLUB, 2002; CWRDM, 1995). There are two fresh water lakes in the State namely the Pookot and Sasthamkottah. The State is also having a total of 46.13 km 2 of estuaries and backwaters. The important backwaters are Vembanad and Ashtamudi lakes
Ten broad groups of soils based on morphological features and physico-chemical properties have been identified in Kerala (Anon, 1978). They are red soil, laterite soil, coastal alluvial soil, riverine alluvial soil, grayish Onattukara soil, brown hydromorphic soil, hydromorphic saline soil, acid saline soil, black soil and forest soil.
The major forest types represented in the State (Champion and Seth, 1968) include the dry deciduous, moist deciduous, semievergreen, evergreen and shola forests . Within these four major forest types are also several subtypes and derivatives, differing in species composition and vegetation characteristics
Almost 78 per cent of the total land area of the State is under agriculture and dwelling, and the remaining 22 per cent of the land is under forests and forest plantations. Quite obviously, the pristine status of nature is better protected only in a limited area, and that too in the higher altitudes, whereas, most of the remaining area of the State is subjected to degradation and transformations of various types

Preserve environment: Students

Three hundred students of S.D. Senior Secondary School marched through the city streets here today to mark the World Earth Environment Day - 1999. The celebrations were organised in collaboration with the Children's Alliance for Protection of the Environment (CAPE). They carried placards proclaiming Save the ozone layer, Save humanity.
Union Ministry of Environment and Forests Joint Director K.K. Garg flagged off the march which was led by school principal Vishwa Bandhu and environment teacher Ajay Sharma. Addressing the marchers, Environment Society of India president S.K. Sharma stressed traditional practices in environmental conservation. The school student's have pledged to take care of some 200 saplings planted by CAPE.
In similar celebrations, the Green Environment Club, Chandigarh, organised an awareness programme on the theme Keep our water sources clean at the premises of the Government Central Crafts Institute For Women. Prof S.C. Jain of Panjab University's Department of Chemical Engineering, spoke on the occasion. He stressed the need to preserve and protect water resources and urged people not to dump garbage, filth and human waste in water. UT Technical Education Director S.K.Aggarwal also spoke. S.K. Sharma gave away prizes to the winners in various competitions relating to World Earth Environment Day. A programme of songs and dances was presented.
The National Service Scheme, Punjab University, and the Government College for Girls, Sector 11, also jointly organised celebrations of the ``World Earth Day'' at Janta Colony, Sector 25 this morning. The celebrations were attended by a number of social workers, community leaders, teachers and NSS volunteers. Dr C.L. Narang, Programme Coordinator, PU, stated that due to ecological imbalances there is a threat of natural calamities in the near future.
Vijay Laxmi, principal of the GCG, said that man had made a blunder in using nature for his vested interests

Industry must contribute to safe environment: Experts

Industry cannot grow at the expense of environment. This was the unanimous opinion of experts at a seminar on `Corporate Environment Initiatives', organised by the Confederation of Indian Industry (CII), in association with the United States Information Services (USIS) and USAID, here today.
Douglas Weinfiled, environmental director, Manufacturers Alliance, USA, focused on short and long term opportunities for gaining financial benefits from environmental management. He presented various case studies, mainly from among the Fortune 500 companies, which clearly illustrated how a company could do well financially by addressing environmental concerns.
He added that environmental management systems were similar to any other system and that every organisation must allocate adequate resources to achieve its environmental goals.
Michael A. Toman, another expert from Washington, said that diffusion of environment-friendly technology was the key to improving corporate environmental performance. Clean technology was fundamentally an economic and social phenomenon, not merely a matter of engineering, he added. However, it was essential to lower the market barriers, which were hindering the penetration of new technologies, he added.

Indian states back special projects for tribals

At a recent meeting in the capital, state ministers for tribal affairs backed a plan to run special projects in 54 identified tribal pockets, aimed at improving the lives of tribal populations and ensuring that funds earmarked for tribals are not diverted
A number of Indian states are expected to come out with a special monitoring scheme to check the diversion of funds earmarked for tribals, and to ensure time-bound implementation of various tribal schemes. State tribal affairs ministers have also agreed to run special projects in 54 identified tribal pockets that have low female literacy rates, and will initiate action plans to develop the habitats of primitive tribes. The states agreed to give high priority to students from scheduled tribes (STs) and help prepare them for study at prestigious institutes, in a scheme in which the Centre will fund their studies. These and a slew of other measures aimed at tribal development were announced after a meeting of state ministers for tribal affairs in New Delhi on February 14, 2007.
Inaugurating the meeting, Union Minister for Tribal Affairs P R Kyndiah voiced his concerns over the lack of allocation of funds for tribal welfare schemes in some states. He said that the Tribal Sub-Plan, which had fallen into disuse over the years because of non-implementation by state governments, would be revived. States have been asked to create a separate head for the Tribal Sub-Plan -- first started in 1974 -- so that funds under the plan could not be diverted.
Under the Tribal Sub-Plan, the states are supposed to earmark funds exclusively for the welfare of STs in proportion to the population of scheduled tribes. Kyndiah said his ministry had written to the Planning Commission not to clear the annual plan for the year 2007-08 for states that had failed to implement the Tribal Sub-Plan. He also urged states to implement tribal welfare programmes in a focused and integrated manner.
In a briefing on the Centre's latest initiatives, Kyndiah said that the ministry had identified 75 primitive tribal groups that would receive insurance coverage under the Life Insurance Corporation's Jaishree Bima Yojana. A scheme for development of their habitat has also been drawn up.
The ministry has decided to involve banks in giving loans for income-generation under the National Scheduled Tribes Finance and Development Corporation. Earlier, loans were disbursed only through the State Scheduled Tribes Finances Corporation that often faced a shortage of funds. Self-help groups would also be involved in disbursing loans at low rates of interest.
The minister expressed his hope that these measures would help prevent tribals from falling into the debt trap.
Sufficient funds have been provided under a special programme to provide 100% financial assistance to the states to take up minor irrigation schemes for scheduled tribes.
Underlining the importance of the recently-passed Scheduled Tribes and Other Traditional Forest-Dwellers (Recognition of Forest Rights) Act 2006, Kyndiah said that the ministry of tribal affairs had constituted a 19-member committee to draft the rules within three months so that the Act could be implemented.
Headed by retired bureaucrat S R Sankaran, the panel will include officials from the ministries of tribal affairs, forests and environment, rural development and panchayati raj, besides representatives from state governments and experts.
The Forest Rights Bill was passed during the winter session of Parliament and received the President's assent on December 29, 2006. It will be another month before it is actually finalised and implemented, according to Union Tribal Affairs Secretary Meena Gupta.
The 2006 Act recognises and vests forest rights and occupation of forest land with scheduled tribes and other traditional forest-dwellers who have been living in the forests for generations but whose rights have never been recorded.
Gupta said the ministry would also develop over 2,700 forest villages, and an amount of Rs 15 lakh per village had been earmarked for the purpose. As many as 13 states would be covered under this scheme that seeks to provide roads, electricity and water to the villages.

Wednesday, July 1, 2009

A new strategy to end farmers' woes

newly-developed scientific strategy may finally end the woes of farmers by averting the possibility of lower crop production or even crop failure and higher food prices in the event of delay in monsoon rains.
The four-pronged strategy developed by the International Crops Research for the Semi-Arid Tropics (ICRISAT) will also help vulnerable farming communities cope better with drought, global warming and other associated effects of climate change, according to a research paper of the institute.
"Climate change is real and its implications are going to be borne by the poorest of the poor," says William Dar, ICRISAT's director general.
"Delayed monsoons as well as below normal rainfall are not something new as these situations occur in rainfed areas very often," he says and recommends adoption of the strategy developed for improved crop production under rainfed conditions.
The strategy calls for growing of drought tolerant and climate change ready crops to match the available length of the growing season and low soil moisture, a contingency plan for replacement of crops affected by drought, efficient management of natural resources and empowering stakeholders through capacity building.
This science-based strategy has been showcased by an ICRISAT-led consortium at Kothapally in Andhra Pradesh. This model is being sealed out in 240 micro-watersheds in India, northeast Thailand, northern Vietnam and China benefiting 250,000 people, officials said.
The ICRISAT-led consortium observed that vast rainfed areas in Rajasthan, Madhya Pradesh, Andhra Pradesh and Tamil Nadu are critically deficient in micro and secondary nutrients and hence, soil health needs to be improved urgently. ICRISAT uses new science tools like crop-growth simulation models, water balance techniques and geographic information systems for assessing the length of the crop growing period and drought characterisation.
Analysts describe India's agriculture as a gamble with the monsoons. However, ICRISAT believes that by implementing the above steps, farmers won't have to gamble and India will be better prepared against the effects of climate change, enjoying sustainable food security over the long term.