HISTORY AND BACKGROUND Bhopal is the capital city of Madhya Pradesh, the largest and one of the most economically depressed states in the nation. At 1970s, the public health infrastructure, sewage and waste system in Bhopal are still in very poor condition . Besides, mass casualty emergency response system also lacking in Bhopal. Union Carbide Corporation is one of the largest chemical and polymer companies in the united state. In 1984, Union Carbide operated in 37 host country as well as in its home country, ranking 35th in size among United State . The history of the company in India goes back much further that, to the early 20th century ,when the subcontinent was still part of the British Empire. In 1970s, the Indian government introduced the new policies to encourage foreign companies to invest in local industry. In partly to response to Indian government policies and incentives , the Union Carbide launched a plant for the manufacture of Seven ,a pesticide commonly use throughout Asia on five-acre plot of land in 1969 .Bhopal become the city for the plant due to its location, which is near to the center if India ,with good rail connection to all part of the country . Despite Indian law limiting foreign ownership of corporation to 40%,the United state parent company allowed to retain majority ownership(50.9 percentage ) of Union Carbide India ,Ltd (UCIL). In fact , the plant at first was approved only for formulation of pesticides from component chemical like MIC imported from the parent company , in small quantities. However ,advantage of growing market in India and pressure from other competitors led UCIL to finally opening a full –fledged MIC component with one facility in 1980.This was indirectly lend to more sophisticated and hazardous process . In the 1980s ,a financial crisis hit Indian farmer and they began buying more cheaper pesticides than those Union Carbide could offer .Due to decreased demand
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