Tata’s initiative comes after Dow Chemicals President and CEO Andrew N Liveris expressed his apprehension in making large-scale investments in India after the Department of Chemicals and Fertilizers filed an application in a PIL in a district court suggesting that the $46-billion chemical giant should contribute Rs 100 crore ($22 million) for remediation of the site.

At the India-US CEO forum meeting in New York last October, Liveris pointed out that the liability, if any, is of Union Carbide, which still exists as a separate company, and no liability rests with Dow as it was not in the picture when the disaster took place 22 years ago. Dow purchased Union Carbide Ltd in 1999.

While Dow has made it clear that it would be willing to contribute voluntarily to the remediation of the site as part of the Indian CEOs’ corporate effort, it wants the government to clarify that it does not hold Dow legally responsible for the liabilities of Union Carbide.

Writing to the MEA on November 8, Liveris, who is a member of Indo-US CEO forum, said that it was not possible for Dow to invest in India unless the issue was cleared. The Dow CEO said that it wants to work with the local industry CEOs, Madhya Pradesh Government and New Delhi to expedite the remediation efforts.

However, the positive note is that Dow has been allowed collaboration with Reliance Industries Ltd by the Ministry of Industry after taking a green signal from the Law Ministry. The foreign collaboration approval was given to Dow in October, signalling that India has not blacklisted Dow as an investor.

Dow now has large-scale plans to invest in Madhya Pradesh and proposes to even employ relatives of the Bhopal gas tragedy survivors. West Bengal Chief Minister Buddhadeb Bhattacharjee has also indicated to Ministry of External Affairs (MEA) representatives that he is looking towards Dow setting up a chemical industry in his state.

So in a bid to break the deadlock, Tata wrote to Planning Commission Vice Chairman Montek Singh Ahluwalia on November 28 that he was willing “to lead and find funding for remediation of site above and below ground” in Bhopal.

It is understood that Tata wants to set up a corpus with the help of other Indian companies and Dow to clean up the Bhopal plant site. Given that the issue is complex and has implications for investors, the UPA government is toying with the idea of setting up of a Committee of Secretaries under Cabinet Secretary B K Chaturvedi to examine Tata’s proposal and implementation of the site remediation plan. An alternative is an inter-ministerial meeting with Tata or his representatives.

Dow Chemicals purchased Union Carbide after all civil claims were settled as per the Supreme Court’s decision. However, NGOs, in a PIL filed in the district court, have claimed that Dow must be held responsible for the remediation measures at the Bhopal site.

But Dow says that while it is comfortable with the case against Union Carbide proceeding in the court, it finds the Department of Chemicals suggestion that Dow fork out Rs 100 crore as an interpretation that the government was holding Dow liable. In a letter to the Ministry of Industry on December 8, the Charge d’ Affairs of the US Embassy in Delhi urged the government to withdraw the Rs 100-crore claim on Dow.

While the top leadership of the UPA government is in favour of burying the legacy, a senior Cabinet Minister told The Indian Express: “It is a sad history but should not bring about a stalemate. Dow has come to work in India, it is not shying and running away... if we do not help Dow settle this, then the company will move to Thailand or Vietnam.”