Round The States

New Delhi, 4 January 2025

Farmers Protest

SC HELPLESS VIZ CENTRE?

By Insaf 

The Centre has left the Supreme Court exasperated over the farmers protests! On Thursday last, the top court gave a rap to Solicitor General saying: ‘Why can't your client make a statement that it will consider the genuine demands, and we are open to discuss the grievances of farmers, our doors are open? Why can't the Central government make a statement?” The two-judge bench also asked the Centre to respond to a fresh plea filed on behalf of farmer leader Jagjit Singh Dallewal (on indefinite hunger strike since November 26), seeking implementation of the proposal, including a legal guarantee for MSP on crops, made to them way back in 2021, after the farm laws were repealed. The court, however, asked the petitioner ‘not to be confrontationist’ as it had set up a high-powered committee to deal with issues raised. It said: “You are asking for compliance of the proposal. How can we direct it? ...We can’t directly have dialogue with farmers. Probably, the central government, whatever may be the good or bad reasons, it is for them to take a decision.” 

Sadly, the clear impression left is that its hands are tied, and it can’t do nothing! A let down alright. In fact, there’s more. The Punjab government has done precious little to ensure medical aid to Dallewal and the court is upset about its intent to bring about a rapprochement. Other than the governments, the protesting farmers are upset with Diljit Dosanjh’s meeting with Prime Minister Modi on New Year’s Day. They question his commitment to them in 2020. While he described the meeting as a “fantastic start” to 2025, some felt if he truly cared about them “he would have come and joined us in solidarity. Instead, meeting Modi raises doubts about his intentions.” Expectedly, the farmers are way too disheartened. The New Year doesn’t seem to give much hope. Will there be a miracle?  

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J&K Govt Responsive

An elected government in Jammu & Kashmir, it can be said, brings in a first visible change.  After a week-long shut down in Katra, base camp for pilgrimage to Vaishno Devi shrine, the authorities had to relent. Protests were triggered after Shri Mata Vaishno Devi Shrine Board’s decided to go ahead with the ₹250-crore ropeway project, which aims to connect Tarakote Marg to Sanji Chhat, sparing the elderly and others to walk the 13-km-long tough track to the cave shrine. The locals, including pony operators, traders, shopkeepers, palanquin bearers, and hoteliers, opposed the project saying not only does it threaten their livelihood, but also offends ‘religious sentiments.’ On Tuesday last, the government halted work on the project, released all 18 protestors of Vaishno Devi Sangharsh Samiti (VDSS) Sangharsh Samiti arrested on December 25 and agreed that the 4-member committee constituted by Lt. Governor, who is chairman of the Shrine Board, should bring about a resolution. Indeed, a great sense of relief for the pilgrims alright, but for the people of the region. They are being heard! 

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MP ‘Inertia’ Over

For four decades governments in Madhya Pradesh displayed a shocking ‘state of inertia.’ It took a hard knock from the High Court to finally get Relief and Rehabilitation Department to act and shift the hazardous waste from the defunct Union Carbide factory after the Bhopal gas tragedy of December 1984. On Wednesday last, 377 tonnes of toxic waste was shifted in 12 container trucks at night to Pithampur industrial area, 250-km from the capital, through a non-stop seven-hour ‘green corridor’ journey. The 100-odd workers who had loaded the waste in 30-minutes shifts underwent ‘health check-ups.’ If all goes well, the waste shall be incinerated within 3 months, or else it would take 9 months, say authorities. While authorities are ensuring the waste has no traces of toxic elements and that the ash doesn’t come in contact with soil and water, the locals in Pithampur are protesting. They claim that in 2015 when 10 tonnes of the waste was incinerated on a trial basis, the soil, underground water and water sources in surrounding villages became polluted! While authorities deny it, they should ensure the waste doesn’t sit in the area like it did for 40 years! Note, a stitch in time saves nine!

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Bihar Poll Mode

Bihar has started ticking. With the onset of 2025, political activity is picking up steam as it goes to polls later this year. One, Opposition RJD is triggering speculation on alliances. On one hand it comes up with New Year resolutions to overthrow Chief Minister Nitish and his NDA government and on the other, Lalu Prasad Yadav makes an offer: “Our doors are open (for Nitish). He should also unbolt his gates. This would facilitate movement of people from both sides.” Nitish reacts: Kya bol rahe hain (What are you saying)’. But recall he has aligned with RJD twice in past ten years. However, he’s being kept humoured by BJP, projecting him as NDA’s face this poll. On another front, Governor Arif Mohammad Khan meeting Lalu Yadav hours before his swearing-in has raised some eyebrows. Explains Khan to media: ‘like you, would I not like to spend some time with those whom I have known since 1975, (old acquaintances) since I am in their city?”  Be that as it may, it may not be that simple. More so, as a lot of stink had been raised by the Left Front government during his tenure in Kerala. While the ruling combine here will be no problem, reining in the Opposition may be an agenda.    

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Telangana Cong Demand

Will Centre pay attention to Telangana’s request and will Congress back it, is a question doing the rounds. On Monday last, the state Assembly passed a resolution urging New Delhi to confer the Bharat Ratna, India’s highest civilian award, on former Prime Minister Manmohan Singh. Expressed condolences over his demise, it paid rich tributes and acknowledged his invaluable contributions to nation’s progress. Plus, it approved a proposal to install his statue in Hyderabad to commemorate him as a great leader ‘who fulfilled 60-year aspirations of Telangana people’. Importantly, opposition BRS and BJP supported the demand saying he deserves the highest honour. However, the latter only a few days earlier had levelled allegations against Congress leader Sonia Gandhi saying the party had ‘not responded to a recommendation by former President Pranab Mukherjee for conferring the award’ on Singh in 2013. Interestingly, there’s no aggressive denial from the party. Plus, it isn’t even vociferously backing the resolution. In fact, some leaders have merely said it was ‘Assembly’s prerogative to pass resolutions but no communication on it has been given from the party’s central leadership’! A conundrum in the midst of heated fight over a respectable memorial for a Sikh Prime Minister!!  ---INFA 

(Copyright, India News & Feature Alliance)

Round The World

New Delhi, 3 January 2025

India &TheWorld

REFLECTIONS ON  2024

By Prof (Dr) D.K.Giri

(Secy General, Assn for Democratic Socialism) 

At the end of 2024, and in the beginning of a New Year, it is useful to reflect on the year goneby, the highs and lows, successes and disappointments. Such an exercise helps to re-strategise our actions for the next year. Thinking people across the world do this in their respective domains, so do we in this column on India and the world. 

To me, two events highlighted the past year – the re-election of Narendra Modi in India, early the year and the bouncing back of Donald Trump to the White House at the end of the year. Modi’s third consecutive term as the Prime Minister meant maintenance of continuity in India’s foreign policy and resumption of Trumpism in USA and the world, albeit with a bit of difference. One can trust Trump to be unpredictable, surprising the world with dramatic posturing and positions that he is capable of taking. For Modi and India’s foreign policy, it is sticking to the conventional strategy of ‘continuity and change’, although, admittedly, more change and less continuity. These are subjects for analysis in 2025. 

However, the point cannot be missed that Trump’s return has already had and will have in coming days and months, significant impact on the Trump’s partners and detractors in the world. They have begun to re-adjust their policies. Trump may be considered unfortunate andprecise in his public articulations, but he is definite and decisive in his actions. Besides, the Trump-Modi inter-personal equations, supposed to be close, will determine India-US ties, especially with regard to China and Russia. Modi will be nudged to take an emphatic and unwavering position in regard to these two countries. 

To begin with, it was heartening to note that 2024 marked the rise of interest in India’s media, academy, and civil society in foreign policy. It has been an elite domain so far. The growth in the economy and in the ambition of a world role have persuaded the informed Indians that the country is in the cusp of breaking into the theatre of world power politics. In the past, the leadership was content in managing India and retaining their influence in the neighbourhood. In 2024, the leadership seems to have acquired a new confidence in venturing into the world. The Prime Minister and foreign minister openly expressed their readiness to mediate, if asked to, in both the dreadful and devastating wars in Ukraine and Gaza. 

New Delhi pursued its strategicautonomy in her response to the wars and other developments in world politics. It continued to expect the onset of multi-polarity as Ministry of External Affairsarticulated and government-supportingcommentators and ex-diplomats endorsed it.Both the strategy and assumption would be put to test in 2025 with Trumpism lurking around the world. The foreign policy has not been deeply debated in the public discourses in India, nor has it been a focus in the parliamentary debates. Although it is a non-partisan subject in many countries, in a democracy, it is expected to be contested by those disagreeing with the government line.   

Despite Modi’s open support to Trump in 2019 in the American presidential elections, the ties between India and the US under Joe Biden remained normal, or rather improved. This is largely because of huge convergence of strategic interests between both countries. At the same time, Indian-Russian relations experienced a voluntary dilution, mainly due to the mess Russia has got into in unwisely invading Ukraine, and failing diplomatically to deal with the Global West.Russia may have fallen to a Chinese trap of making Moscow vulnerable and more dependable on Beijing. Modi managed to keep both the US and Russia on friendly terms. Although the stance of neutrality may not be viable in practical terms in the long run. 

Despite several negotiations between the Chinese and Indian armies, New Delhi has not been successful in pushing Beijing back from the borders and containing its predatory approach in claiming Indian lands. Some patrolling and grazing rights in the friction areas of Depsangand Demchock have been retrieved. But the crux of the Chinese game is that it continues to occupy 38,000 km of Indian land. It continues to weave the ‘string of pearls’ around India. 

One major success in the last year is the emergence of India as the authentic voice of Global South since hosting the G-20 Summit. In the same Summit in New Delhi, India incorporated the Organisation of African Unity (OAU) into the G-20, which was a major achievement. Last year, New Delhi hosted the third virtual Voice of Global South (VOGS) Summit in August. Prime Minister Modi hosted the Inaugural Leaders’ conference. Although BRICS provides an alternative to countries to global South, many countries look at India in taking such strategic decisions. India’s of blending democracy and development attracts many countries. 

In the neighbourhood, it has been a mixed bag. Sri Lanka seems to be making up with India while partially shedding its China fascination. The new president Anura Dissanayake has a left background, but in the office, he is displaying pragmatism in pursuing his country’snational interest.His maiden overseas visit to New Delhi went off well. The Sri Lankan President publicly acknowledged India’s timely support and made relevant promises on regional security etc. He committed not to allow his country to be used against any ani-India activity. 

Bangladesh gave quite a bit of tension with a political upheaval in the country that brought unprovoked violence against Hindu minorities and anti-India posturing by the current government. This shift took place following the flight of the former Prime Minister Seikh Hasina into India where she is being sheltered. President Mohamed Muizzu of Maldives mellowed towards India last year with two visits to New Delhi. He had begun his campaign for his election on an “India Out” plank. Nepal has not moved away much from India last year perhaps because of the instability of governments. 

Modimade good impact in distant shores with strategic visits to countries like Poland, Nigeria, Brunei, and Kuwait. All these visits were after a long gap, 45 years after the visit of last Indian Prime Minister to Poland and 43 years to Kuwait. In both countries he got good reception. Kuwait honoured him with the highest civilian award and Poland raised the scope of deepening ties. 

Another avoidable hiccup in 2024 was the verbal assault of Canadian Prime Minister Justin Trudeau on India with his unsubstantiated charges in relation to the Khalistan supporters in his country. His dependence on a Sikh party for political survival reflected unhealthily in his policy towards India. 

To conclude, India managed to hold its own in world politics, despite a few challenges and broke new grounds in certain areas and countries. The economy did not grow as it should have in keeping with New Delhi’s targets and aspirations, but did not do badly. All in all, 2024 has been a balanced year for India’s foreign policy.---INFA 

(Copyright, India News & Feature Alliance)

Economic Highlights

New Delhi, 30 December 2024

Tough Governor, PSU Sales

LEADS JOBLESS GROWTH

By Shivaji Sarkar

Dr Manmohan Singh had semi-political and political stints long before he rose to become a finance minister, bestowed with credits for being ‘The Great Liberaliser’ or reformer of the Indian economy and ‘not a politician’ as prime minister.

Despite his academic credentials, the sweet, sober gentleman had a knack of keeping all he was close to in perfect humour and rub no one the wrong way. He had wisdom. So from Member-Secretary of Planning Commission in 1982, then Prime Minister Indira Gandhi moved him to Reserve Bank of India (RBI) as the Governor from September 16, 1982 and held office till January 14, 1985.

Singh protested high statutory liquidity ratio (SLR) – the portion of bank deposits to be mandatorily invested in government securities – at 36 per cent. He turned down a request from the Government for increase in SLR by two more percentage points as it would have diverted about Rs 1,550 crore from non-food credit to the Government.

The RBI has been doing the sheet anchoring of the Indian economy and many finance ministers, as even at present, never liked an upright Governor. Singh acknowledged in the book ‘Strictly Personal: Manmohan and Gursharan’, authored by his daughter Daman Singh, that he did have serious differences with the then Finance Minister Pranab Mukherjee when he was RBI Governor. Singh advised the government against granting approval to Bank of Credit and Commerce International (BCCI) — a foreign bank promoted a decade earlier by the Pakistan businessman Aga HasanAbedi — to open a couple of branches in India. However, the government wanted the RBI to grant BCCI a licence and directed it to approve the application. With the RBI led by Singh opposing it, the government took to the Cabinet a proposal to strip the RBI of its power to license foreign banks.

Singh protested and sent his resignation to Mukherjee and the Prime Minister. However, he was persuaded by the government to continue as the Governor. Singh and Mukherjee reportedly had differences of opinion on the hostile takeover plan of Escorts and DCM by UK-based industrialist Swaraj Paul.

In 1990-91 the current account deficit swelled to 3 percent of the GDP, a level highest by far in two decades. The import cover afforded by India’s reserves plummeted to a historic low of three weeks at the peak of the crisis. At this critical time, Prime Minister PV Narasimha Rao inducted him as finance minister. Singh, as Finance Minister, abolished the ‘Licence Raj’. He liberalised the Indian economy, allowing it supposedly to speed up development. Rao is stated to have rejected his original budget draft, and he had to redo. His new draft opened up avenues for closure of PSUs, job losses and the end of the monopoly laws and competition. The central government’s immediate response was to secure an emergency loan of $2.2 billion from the International Monetary Fund by pledging 67 tonnes of India’s gold reserves as collateral security in 1991.

From1979-80, India started facing the balance of payment (BoP) crisis. By the end of the 6th Five Year plan in 1985, India’s BoP deficit rose to Rs. 11,384 crores (from a BoP surplus of Rs. 3082 crores during the 5th Five Year plan ending in 1978).

His new 1992-93 budget could not absolve Singh of the stock market debacle. Unprecedented stock price rises initially filled the powers that be with great joy. It was believed that the world had given a laudatory approval to liberalisation and globalisation raising false hopes that investments were pouring in. It turned intoa concern in days.

According to the book‘A Fly on the RBI Wall’, published by Rupa Publications, “When the Harshad Mehta scam was unearthed, it was RBI Governor S Venkitaramanan, who understood the connection between trading in banker’s receipts (BRs) and the rising stock market, which was what Harshad Mehta was engaged in.Harshad borrowed money from banks through BRs, invested it in ‘badla’ in the stock market, and returned the money to the banks two days later when the ‘badla’ transaction would unwind.”The Joint Parliamentary Committee (JPC) intense probe proved the scam, and it was found that Mehta defrauded banks, financial institutions, LIC, GIC, Unit Trust and host of others. It caused a loss of estimated Rs 50 lakh crore to government bodies. The JPC recommendations led to a major overhaul of the Indian financial system, including setting up of Securities and Exchange Board of India (SEBI).

Singh was accused by some journalists of most large newspapers in early 1990s of being the agent of International Monetary Fund, World Bank and MNCs, as his moves facilitated many foreign companies increase their stake at low costs. Today, those newsmen writings are all laudatory for him, after his demise.

Singh’s move for putting the PSUs on sale block had his successors in United Front circumspect and set up Disinvestment Commission under GV Ramakrishna in August 1996. The commission,in 1999, submitted reports on 58 PSUs, recommending disinvestment of up to 49 percent in core sectors and 74 percent or more in non-core sectors. This led to sale of some of the iconic PSUs like HMT that turned the country into an international watch-making hub. It was apparently done to facilitate a large private house’s new watch-making facility.

Often it is said that Singh’s prescription added to GDP growth. Partially correct. The GDP growth rate in 1993 was 4.75 percent and in 1995 and 1996 – 7.5 percent. But manufacturing growth remained stagnant, and the country was losing jobs – adding to the epithet – “Jobless Growth”.  By 2019, it, according to Singh, had turned into “job-loss growth”.

Singh as prime minister during UPA-I had given the country the Right to Information (RTI) Act, MGNREGA for adding to the rural jobs, National Food Security Act, Right to Education Act, Direct benefit Transfer, Nuclear Agreement with the US and Land Acquisition Act. The Land law is playing havoc with severe depletion of agriculture and forest land. The nuclear deal with US raised a storm in teacup by the Left parties even with a no-confidence motion in 2007, which Singh managed to win. In hindsight, none but the Left lost in the deal that remained virtually stillborn, except some minor deals with the US.

The UPA-I strategy helped Singh return to power with a larger number, 205, seats in 2009. It was considered his gain and not so much of the Congress party. After the 2008 Lehman sub-prime meltdown, Singh succumbed to the lobbying of corporate, granting them huge incentives (loans) from public sector banks. This led to a severe NPA or losses to banks, inflation – mehangaidayankahyajaathai(inflation is called a witch), an unstable political situation and losing out in the 2014 elections to a virulent campaign by the BJP-RSS. The rest is history. ---INFA

(Copyright, India News & Feature Alliance)

Economic Highlights

New Delhi, 23 December 2024

DND Toll Chinks

18 LAKH CR PETROCESS GUFFAWS!

By Shivaji Sarkar

Indians tormented by high prices, high tolls and irrational so-called fastag got a minor relief on consideration of the concept as anti-people.The Supreme Court ruled that the 9.2km Delhi-Noida-Direct (DND) flyway will be toll-free as it dismissed a plea by a private firm challenging the 2016 decision of the Allahabad High Court order asking it to stop collecting toll from commuters.

In effect the SC upheld the concept that awarding a contract to private firm Noida Toll Bridge Company Ltd (NTBCL) to collect toll from commuters plying on the DND flyway was unjust, unfair and arbitrary. This is the sine qua non of a continuous strife going on with both the Central government and its National Highway Authority of India (NHAI), which go on imposing irrational toll on people’s highways, a road they won and land purchasedwith the taxpayers’ money.

The landmark judgement may ensure all highways remain free of charges to users and no levying of arbitrary and illegal fee on NHAI road users. It would cut costs of commodity prices too.

The top court’s DND judgment is virtually a challenge for imposing any tax on the travelling people, who are the real owners of the road. Petrol cess earnings of Rs 18,02,463 crore was not revealed as NHAI earnings during 2018-2021. This can change the toll scenario all over India.

The SC decision on ending DND toll in the heart of Noida and Delhi, will benefit lakhs of people who commute daily on the flyway as well as highways in future. “There is no reason for the collection of user or toll-tax to continue. We hold that the agreement (for toll collection) is invalid,” the bench of Justices Surya Kant and Ujjal Bhuyan held.It finds the company realised costs within a short span.

Virtually tolls on all roads are imposed with such arbitrary conditions be it of state governments or NHAI. It pulled up the NOIDA authority for delegating toll collection to private firm NTBCL, which did not have any prior experience and said it has resulted in unjust enrichment. The bench said that NOIDA overstepped its authority by delegating the powers to NTBCL to collect or levy fees and it has led the general public to part with hundreds of crores of rupees.

The high court, in October 2016, had ruled following a PIL that there would be no toll collected from those using the 9.2 km-long, eight-lane Delhi-Noida Direct flyway.

Broadly toll imposition on highways are no less arbitrary. In an over 100-page judgment, the high court had held, “the user fee which is being levied/realised is not supported by the legal provisions relied upon by the Concessionaire (Noida Toll Bridge Company), Infrastructure Leasing and Financial Services (promoter and developer of the project) and the Noida Authority.” It had said the “right to levy and collect user fee from the commuters suffers from excessive delegation and is contrary to the provisions of the UP Industrial Development Act”.

The PIL, filed in 2012, had challenged the “levy and collection of toll in the name of user fee by the Noida Toll Bridge Company”. The SC validates the petition the petition for DND operational since 2001. The toll was removed on court orders in November 2016

It further suggested that the Prevention of Corruption Act could have been invoked had it not been for the long passage of time. It held “this blatant misuse of power and breach of public trust has profoundly shocked the conscience of the court”.  The formula used to calculate the total project cost, the court endorsed findings from the Controller and Auditor General (CAG) report, which highlighted serious lapses, including inflated project costs and an assured return rate of 20 percent, far above market rates. 

This is a landmark judgment in Toll Grey Areas. All over the country, the state government or other toll provisions apparently have less of clarity. It is expected to have impact all over the county on the toll rates, cess collections, land acquisition, and levying of toll on the land acquired with the taxpayers’ money for his own use. In other words, could there be toll on a land acquired by the road user himself?

There are too many grey areas. In 2024, toll collection revenue on national highways was over Rs 648 billion, a 35 percentincrease from the previous year.  Despite that since 3 June toll rates are hiked by 5 percent, without an explanation. The total toll length in India has increased from 25,996 km in 2019 to 45,428 km as of November 2024. 

The year-wise revenue collected as cess on petrol (quietly rephrased Excise duty) on all petroleum products during the last three years i.e. 2018-19 – Rs 2,14,369; 2019-20 – Rs 2,23,057; and 2020-2 1 is Rs 3,71,726.  It is a huge fraud committed on the road user. The figures if added to Toll levies mean almost 50 percent extra amount is collected for the purpose of road construction and diverted.

The non-mentioning of petrol cess in 2018-19 was Rs 5,75,632; Rs 2019-20 was Rs 5,55,370 and Rs 6,71,461 in 2020-21, total of Rs 18,02,463 crore, according to answer inthe Rajya Sabha on August 11, 2021 by Minister of Petroleum Rameshwar Teli. It raises costs of all commodities adding to severe inflation.

This calls for scrapping of all tolls collected by the NHAI. The year 2024-25 could be unique if the DND toll principles applied universally over all NHAI tolls ensuring recoveries from the NHAI and state highway systems.

A Japanese study found that the effect of highway construction and increase in travel distances on retail prices of butter in Japan rose by 5.3 percent between 1966-80. India has yet to do such a study. But Indians could have immense relief if the DND principles are applied widely to end the highway toll for all classes of vehicles.---INFA

(Copyright, India News & Feature Alliance)