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.

... contd.