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Electoral Funding:POLITICS CHARITABLE? REALLY!, by Poonam I Kaushish,11 July 2009 |
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POLITICAL DIARY
New Delhi, 11 July 2009
Electoral Funding
POLITICS
CHARITABLE? REALLY!
By Poonam I Kaushish
Whoever said charity begins at home was dead on. Specially
when it comes to our polity.
The latest buzz word heard in the corridors of Parliament
are charitable trusts. Ostensibly to clean the clogged, polluted and corrupt
electoral arena. In politics and yet charitable? You got to be kidding me!
Towards that end, the Union Finance Minister Pranab
Mukherjee grandiosely announced major electoral reforms for funding political
parties through ‘electoral trusts’. Though donations to parties are already
tax-free, the trust route would provide an alternative to corporates that wish
to finance polls, but don't want to be identified with a party. This would
bring transparency into party funding, as companies and individuals would be
barred from doing so directly. And help reduce black money in elections, he
added.
So far so good. But the moot point is: does it fulfil its
objectives--stop generation and use of black money, besides getting the parties
to submit their audited accounts regularly. No. Will it stop the use of money
power which has become the bane of India’s electoral polities? No way.
Will it decrease corruption? Not at all. Bring about the much-hyped and
promised transparency? Are you kidding? Or, will it lead to “remote control” of
politicians, parties and even Parliament? And make the political system
subservient to India Inc?
Think. Can donations to political parties ever be
“charitable” in nature? Charitable donations can be to an organisation or trust
for eradication of poverty, spread of education, but “where is charity in
politics? Politics is not a charity” Besides, nowhere does the proposed law
spell out whether the source of the contributions would have to be “revealed”
by the donors.
Not only that. The proposal lacks vision in respect of who
would set up the trusts -- the Government, corporate houses or individuals --
and whether disclosure of the source of money was obligatory on the donors.
Asserted a former Election Commissioner, “Donations are welcome but they could
be an easy way to launder black money if disclosure of the source is not made
mandatory. Transparency on political funding, as in the West, is a must before
exemption is allowed.”
Questionably, would the donations be altruistic? Or will
these be according to the corporates preference for political parties and their
ideologies? Or would these be on the basis of pure simple quid pro quo? How
else does one explain the phenomenon of the donation cup over flowing whenever
a party is in power, at the Centre or in States?
Donations for 2003-04 show how the fortunes of the ruling
party differ from the one out of power. While the Congress ‘officially’
received just Rs 2.81 crore, the BJP managed over Rs 11.69 crore. Money was
paid through little-known trusts, or in some cases, directly by the business
groups.
Interestingly, a cursory glance of affidavits filed with the
Election Commission reveal the bizarre realities of Indian politics. It
showcases significant contributions from several business houses that have
directly benefited from the party in power. A metal and mineral baron who had
funded the BJP in 2000, became the proud owner of 51% of Balco, the PSU
aluminum major.. This was sold for $121 million by the NDA Government sparking
off protests for its alleged undervaluation.
Perhaps taking a cue a steel magnate paid Rs 50 lakhs to the
Congress in 2003 and within months was inducted into the Party. However, in the 2004 Lok Sabha poll he was
one of the highest donors to the BJP even though he contested on Congress
ticket and won. Truly playing both ends against the middle. Scandalously, the
BJP was also funded by a Delhi-based builder, who was rewarded with highway construction
contracts.
Clearly, the relationship between industry and politics has
been symbiotic and part antagonistic. History tells us that during Nehru’s
rule, corporates funded the Congress and secured leverage over the shaping of
policies on state regulation of the economy, obtaining permits, licences and
quotas.
His daughter Indira cleverly amended the Company Law to bar
such contributions ensuring that the
ruling party alone got the funds --- of course under the table. The flood-gates
of corruption were now open. Licences and permits were unabashedly hawked
thereafter --- like chaat and moongphali. Post 1969 became notorious
for "briefcase politics" - the transfer of vast amounts of black
money in the form of cash into the coffers of the Congress.
Though her son Rajiv allowed Company donations, the Party
found a novel method. Instead of funds
from corporates it took recourse to kickbacks from foreign firms in defence and
infrastructure deals. Fund-raising became centralised and certain businessmen were
used as conduits and the monies parked in secret bank accounts abroad. La
Affaire Bofors.
Narasimha Rao’s era too was enmeshed in slush funds, the hawala scandal, which highlighted the
sleazy method of political funding. During the coalition era corporates funded
the dominant party in every State, rather than funding only one or two parties
at the national level. Thus, according to its interests, a company ended up
financing one party in a State and its rival in another State.
Following the Supreme Court's order in 1996, that parties
should identify and acknowledge corporate donations in their book of accounts,
both the Congress and the BJP averred that they would prefer contributions from
companies by cheques. However the obverse was true. In 2004 Congress requests
to 25 top industrial houses asking for donations to fight the Lok Sabha
election met with a lukewarm response.
It is no secret that parties spend huge amounts for
elections. But the economics of running an election campaign are a hush-hush
affair. Primarily because they use elections to amass wealth not only for their
parties and themselves but for future elections too. Like politics, elections have become a
business --- like businessmen the politicians in the election business balk at
the idea of controls and regulations. That is why no political party, however
vocal about the matter while in opposition, has made a sincere attempt at
stanching the flow of black money into the electoral arena.
Sadly, there is brazen hypocrisy and humbug in what
transpires under the framed rules. Today, a candidate spends over Rs.10 crore
per election instead of Rs.25 lakhs allowed by the Law. Hypothetically, the
minimum amount needed by each party for the 545 Lok Sabha seats would be
Rs.5450 crore. Multiplied by 10 candidates per constituency, it adds up to a
mind-boggling Rs.54,500 crore. Are we expected to believe that this amount will
now be collected by cheques, only cheques? What would happen to India’s
parallel economy?
True, over the years the Government has tried to bring in
legislation to regulate party funds -- distribution and spending of party funds
during non-elections and elections. Getting them to maintain regular accounts
and make audited accounts available for inspection. It even held out threats of
de-recognition if parties filed false and incorrect election returns. But
nothing worked. Even as poll costs continue to increase.
Unless one determines the sources that should be legally
tapped for campaign expenses there is little hope of minimizing the evil
influence of unaccounted money power and vested interests. Company donations
will at best add up to a few drops in the electoral bucket.
What is the way out? One, donations should be evenly spread
out, not necessarily equally, but perhaps in some proportion to seats in
Parliament. Two, State funding of elections. Three, the fund to be apportioned
on the basis of votes secured by candidates in the election. Four, the amount
be released to individual candidates, and not to political parties. Five, 50%
of the fund to be released as an advance before an election, on the basis of
previous performance.
In sum, given that political parties function as private
limited companies, each with its own secret war chests, we still have a long
way to go before we can make elections honestly free and fair. True, a
beginning has been made. But the licence for brazen electoral corruption and
political ghooskhori is far from
over. ---- INFA
(Copyright,
India News and Feature Alliance)
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Maoists Problem:DON’T STIFLE BASIC RIGHTS, by Dhurjati Mukherjee,3 July 2009 |
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Open Forum
New Delhi, 3 July 2009
Maoists Problem
DON’T STIFLE BASIC RIGHTS
By Dhurjati Mukherjee
The Centre’s recent ban on the Maoists has raised a moot
question: will it solve the deeper issues behind their confrontation with the
State? Undeniably, there is need for a political and administrative solution.
Improving the ground situation may go a long way in getting them to give up the
path of violence. Let the State not take an easy way out and go deeper into the
problem.
The political and economic rights of the people, specially
of the poorer section, are being curtailed. Anyone who dares to speak against
the policies of the State in regions such as Jharkhand, Orissa, Chhattisgarh, West Bengal or Andhra Pradesh are termed Maoists or
Naxalites and arrested and tortured. People fighting against displacement or
for their livelihood are branded as ultra left or anti-socials and arrested and
these include adivasis and tribals. Not only Naxalites and Maoists but Muslims,
dalits and tribals and those fighting for the right to self-determination like
Kashmiris, Nagas, Assamese, the Bodos and the Kamtapuris have become particular
targets by the respective State governments. Are we heading in the right
direction?
This year has been designated by the United Nations as the International Year of Human Rights “to broaden and deepen
human rights learning on the basis of the principles of universality,
individuality, interdependence, impartiality, objectivity and non-selectivity,
constructive dialogue and cooperation, with a view to enhancing the promotion
and protection of all human rights and fundamental freedoms”. The Centre has
all along been clamouring for human rights in official meetings and
conferences. But does it show sincerity? It is necessary to critically examine
the record of the country in the sphere of socio-economic and political rights
that our citizens enjoy.
As is well known, the policies of globalization and
liberalization pursued for the last few years have boosted the GDP growth and
raised the average incomes of the rich and the upper middle income sections of
society, who contribute merely 15 to 18 per cent of the population. But around
70 per cent of the population, which constitutes the economically weaker
sections and below the poverty line groups has been suffering from hunger,
malnutrition, displacement and various other problems.
As Jeremy Seabrook, renowned journalist and author, in a
recent article pointed out: “it (globalization) turns sacred forests and
groves, rivers and springs into timber and water resources. It evicts people
from subsistence for the sake of cash crops, introduces a global market in
places where people had survived immemorially within the limits of the local
resource base”. On the one side, we have increasing leisure and amusement
while, on the other, the survival of the poor is at stake. Thus there have been
no perceptible development in their standards of living and they continue to
languish in poverty and squalor.
It is thus argued by a section of economists and development
experts that wealth is being concentrated in a few hands and the vast section
of the masses have been left impoverished, deprived and discriminated. People
have been fighting for their land, for the rights of self-determination for the
empowerment of women against social injustice and displacement. In the face of
people’s resistance, which are quite natural and just, the State acts as an
oppressor in a violent manner by curbing mass movements, conducted in a
democratic manner.
In different regions of the country’s jails, political
prisoners, who are at the forefront of highlighting political demands, have
been languishing in pitiable conditions. Most of these prisoners are considered
a “threat to security”. In spite of tall talks of human rights, the prisons
where these prisoners are kept cannot be considered a place worthy of living of
human beings. Moreover, there are many cases where prisoners have been
languishing without trial, thereby affecting human mind and body.
The inhuman torture, specially of Maoists and Muslims, in
the name of security has raised a demand for proper treatment of political
prisoners and release of those against whom there are no specific charges. In
fact, a Committee for the Release of Political Prisoners (CRPP) was
formed, last year to coordinate the work at the all-India level, involving activists
from all parts of the country including Punjab, Tamil Nadu, Andhra Pradesh,
Maharashtra, Delhi, the North East (including Assam and Nagaland) and West
Bengal.
Following brainstorming sessions, the Committee put forth a
list of demands which need to be considered. These include: doing away with
illegal detention of political prisoners and giving them special status and
rights of political prisoners; as more than 230 countries of the world have put
an end to capital punishment, this barbaric punitive instrument should be
repealed as it does not address any social or political malady; putting an end
to the worst form of atrocities ( as is the case with gangs like the Salwa Judum in Chattisgarh, the Sulpha in Assam, the death squads of
Punjab, the Ipwan-ul-Muslim in Jammu
& Kashmir, the Green Tigers and Narsa Cobras in A.P., the Nagarik Suraksha Dal in Jharkhand and Harmad in West Bengal) in the name of
national security and scrapping all anti-people laws that have given blanket
power to the State.
In addition, the Committee made a note that as prisoners
from the Muslim community, the Kamtapuris, the people of Manipur, Nagaland and Assam, the
Maoists have been facing the worst form of humiliation and torture in the
prisons. Thus, there is a need to improve conditions in these places and
judiciously follow the jail manual. It even sought the lifting of the ban on SIMI (Students Islamic Movement of India)
and the seven mass organizations including Damana
Pratirodh Manch of Orissa and stopping of torture through unscientific
tests like Narco analysis, polygraph and similar third degree methods; treating
prisoners of war as human beings and in accordance with Geneva Convention to
which India is a signatory; and lifting the ban on all parties, organizations
in the schedule of Unlawful Activities (Prevention) Act.
Many activists are of the opinion that whether it is the
tribals, women, minority communities, the displaced or the Maoists, the State
has let loose a reign of terror. It has been trying to project the Maoists and
the Muslims as demons or witches who could be hunted and killed in cold blood,
which reminds us of the days of witch hunting in medieval Europe.
Clearly, the protests time and again for political and
economic rights of the poor and downtrodden people has become manifest in the
country and people from all sections of society, which include intellectuals,
advocates and students are coming forward to raise the banner of revolt. This
has become even more pronounced since the report of Debabrata Bandyopadhyay, Retd.
IAS, submitted to the Planning Commission on increase in the popularity of the
Naxalites. The report sadly points out that there has been wrong treatment of
the Maoist problem. This is not at all a law and order problem but basically a
socio-economic problem. Indeed, isn’t it time that the powers-that-be give a
serious thought to what ails the society and consider providing the
underprivileged the basic necessities of life? --INFA
(Copyright,
India News and Feature Alliance)
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Hillary Visit:INDIA SHOULD BE FIRM, by PK Nigam,8 July 2009 |
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Events & Issues
New Delhi, 8 July 2009
Hillary Visit
INDIA SHOULD
BE FIRM
By PK Nigam
US
Secretary of State Hillary Clinton and other U.S.
officials are soon going to descend on New
Delhi. A big number of US and UK leaders such as Condoleza Rice and the
British Foreign Secretary, David Milibrand visited Delhi shortly after the Mumbai blasts. Their sole
aim was to prevent any strong action against Pakistan
in view of the anger in India
and the public condemnation worldwide. Clearly, the intention of both the
Americans and the British was to use India
and Pakistan to fight the Taliban,
which is fighting against the US
and the NATO.
The
two did succeed in pacifying the UPA Government. Young ‘Milibrain’ (which
describes Milibrand better) posing as a great champion of truth claimed: “I
have no evidence of Pakistan
state directing terrorist activities against India. I would never make that
claim without that evidence.” Either Milibrain’s claim was due to ignorance
(which shows British Intelligence in a very poor light) or for ulterior
motives. The latter is more likely. Europeans think that the Albino is a big
intriguer and a liar. The real reason is “tilt” towards Pakistan, which was England’s creation. The truth is
conclusively proved in following paragraph:
Ahmad
Rashid, the famous Pakistani journalist and an authority on Taliban has written
in his widely-acclaimed book, “Descent
into Chaos/ The U.S. and the Failure of Nation Building in Pakistan,
Afghanistan and Central Asia”: “The
ISI (and Pakistan army) has for more than 20 years, for its own purposes,
deliberately and consistently funded and incubated a variety of Islamist
groups, including in particular Jaish-e-Mohammad and Laskhar-e-Taiba. Since the
days of the anti-Soviet Mujaheddin, the Pakistan army saw the Jihadis as an
ingenious and cost-effective means of both dominating Afghanistan – something
they finally achieved with the retreat of Soviets in 1987 – and bogging down
the Indian army in Kashmir – something they succeeded in achieving from 1990
onwards.” ... “Hamid Gul, (the then director of ISI), who was largely
responsible for developing this strategy, once explained to me, “if the ISI
‘encourages the Kashmiris, it is understandable”
It
is more than seven months since the Pakistani terrorists, trained and armed by the
ISI and its government, struck in Mumbai. Though the US
and the UK preached New Delhi to fight terror in cooperation with Islamabad, as both were fighting a common enemy, Pakistan has
done nothing concrete to punish the terrorists involved in Mumbai or in closing
down the numerous terrorist training camps and hate-preaching Madarasas even
now. According to some estimates, there are 20,000 Madarasas in Pakistan. Saed,
who founded the Laskhar-e-Taiba and master-minded the Mumbai attack, was let
off by the court in Pakistan.
Importantly,
the US could have put
effective pressure on Islamabad to close the terrorist
training camps and Madarasas, as it keeps a bankrupt Pakistan afloat. On the other hand,
the US is flooding Pakistan with
money in the name of fighting terror. This only emboldens Islamabad
to attack India.
Despite our protests, since the birth of Pakistan,
the US has been giving arms
and economic aid to Islamabad
under various pretexts such as fighting communism and now terror. However, all this is being used against India.
In
the past, Pakistan loudly
said and is saying even today that its main enemy is India. We are now being told by the
US that we have nothing to
worry about other than liberal economic aid to Pakistan (when the US, itself is
bankrupt today). Sadly, this is a repeat of the old song. Moreover, Pakistan army
is putting up a show of fighting the Taliban and making false claims of
victory. Hence, we should not expect any help from the US, our
so-called partner in the fight against terror. Both Pakistan
and the US
are playing a double game. The main question for us today is: what do we do to
protect our national interest and our people?
We
should not take a defensive posture in our incoming talks with Hillary Clinton and
other US
officials and tell them firmly our policy. We will neither reduce any troops
from our western border nor will we give up our nuclear arsenal. The two are
absolutely necessary for our national defense, in view of Pakistan’s
hostile and offensive posture. Sending terrorists to India is an offensive posture. Islamabad has very clearly said that India is its main
enemy and its nuclear arsenal is against it only. The US was saying
so also. Thus, our nuclear arsenal ensures that Pakistan can never use any nuclear
bombs against us.
As
far as Kashmir is concerned, it is a bilateral matter, between India and Pakistan, to be resolved peacefully
and bilaterally according to the Simla agreement. We do not want the U.S. as a mediator, facilitator or
under any other fancy name. Nehru had correctly said that Kashmir is not the
cause but a symptom of Pakistan’s
hostile attitude. More than the US
or any other country, we want to live in peace with Pakistan for the benefit of both of
us.
Gandhiji
had agreed to the partition of India
in 1947 on the condition that it will be between two brothers. Any pretension
of the Pakistan
government, that it is the protector of Muslims interests is hollow and devoid
of truth. An objective study of conditions of Muslims in pre-partition India shows that they are much better off in
Indian than Muslims in Pakistan
with its murderous military dictators. This goes to prove that the claim of Pakistan and its former president Parvez Musharraf
that it has a natural interest in Kashmir is a
fabricated excuse for creating trouble in the Valley.
Hence,
we have to protect our national interest and our people on our strength, based
on our own judgment. The only concession we can give to the US is that we will take a defensive posture and
not attack Pakistan,
unless attacked overtly or covertly. This should enable Pakistan to
fight the Taliban without any danger from us. ---INFA
(Copyright, India News and Feature Alliance)
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Mamata’s Rail Budget:DERAILED BY INTER-STATE DIVIDE, by Insaf,9 July 2009 |
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Round The States
New Delhi, 9 July 2009
Mamata’s Rail
Budget
DERAILED BY
INTER-STATE DIVIDE
By Insaf
The much-hyped pro-janata
Union Railway budget appears to have got caught in the vortex of inter-State
warfare. Specially, those States due to hold Assembly elections in a few
months. Accusing the Union Railway Minister Mamata Banerjee of rolling out her
‘‘goods train” for West Bengal, MPs cutting
across States and Party lines said, “Sab
kuch Bangal, baaki sab kangal.” Reminding her that the Railway Ministry did
not “belong to West Bengal but to the entire
country,” they insisted that the “States’ demands be incorporated.” Specially
against the backdrop that of the 309 model stations proposed, 40 are from
Kolkata and 97 from Bengal, with Bangalore
being “off the radar.” Playing States’-pooper, Maharashtra
however, which too is going to the polls this winter took a contrary view:
there was no budget-election co-relation. Given that few new trains had been
sanctioned for the State.
Meanwhile, Uttar Pradesh, described by some as the “nation’s
dil (heart)” too echoed similar grievances, notwithstanding the
retinue of Prime Ministers (Nehru, Shastri, Indira, Rajiv, Vajpayee et al) from
the State. Demands for a number of new trains/connections from Lucknow have been hanging fire for the past
five years. Acknowledging that the Railways was the “lifeline” of the nation
and promotes “national integration”, the Railway Minister disputed the
complaints made by the States. Said she, “UP has been given 21 new trains, Maharashtra 19 and Orissa seven. What more do you want”,
she told the States’ representatives. Adding, “I am not a magician but am
willing to consider requests.” It remains to be seen if Mamata will show some mamata and redress the States’
grievances or let the regional drift widen?
* * * *
States On Mat For
NREGS Non-implementation
All States have been put on notice by the Centre vis-à-vis the implementation of the
National Rural Employment Guarantee Scheme (NREGS). Given the States abject apathy
towards meeting the 100 days of employment target. In a chat with Insaf, the Union Rural Development
Minister C P Joshi asserted that the “programme was not working properly. There
was no monitoring of works in the pipeline and those concluded resulting in
corruption, malpractices and various acts of omission and commission.” Pointing
out the anomalies in the NREGA Act, Joshi added, “the Centre provides
three-fourth of funds and the balance is put up by the respective States but
the onus for implementing the scheme is with the States, which have failed to
perform.” Specially, in the implementation of roadworks. What is more the
‘rogue’ States are those boasting of a large poor population. Shockingly,
instead of 100 days of guaranteed employment the national average has been
between 42 and 48 days. It remains to be seen if Joshi’s whip-cracking will get
the States to get their NREGS act together!
* * * *
Drought Woes In Northern States
With the monsoon playing truant in the northern States,
‘drought’ clouds are hovering over the UPA Government. The nation’s
granary—Western UP, Punjab and Haryana, have had almost nil monsoon showers, as
against a spurt in the monsoon in east and central India. The sowing of paddy crop is
not only far behind last year’s levels, which had seen early monsoon, but also
behind the sowing pattern in 2007-08. The maize crop is affected in Himachal
Pradesh as there has been 59 per cent shortfall in pre-monsoon rains. The Met
office has already rung the alarm bells by saying that the monsoon was
deficient by 44 per cent and worse, that the next 10 days will only have scanty
rain. A worried Union Agriculture Minister Sharad Pawar held a meeting with top
officials of his ministry, Meteorological and Water Resources Department on
Wednesday last to review the kharif season, which is in danger. To top it all,
the poor power situation in north India is adding to the government’s
woes. All eyes are on the sky.
* * * *
Punjab &
Haryana Show The Way
However, with monsoon blues staring them in the face, both Punjab and Haryana, are trying to overcome their power
shortage woes with stern orders. Last week, the Haryana Government banned air
conditioners in all its offices. An official communication sent to various
departments, said the ban would be implemented “in both letter and spirit”.
Except for hospitals, ACs are not to be used in government offices,
corporations, universities, boards, local bodies et al, within and outside the
State. Neighbouring Punjab, however, has done
one better. It has not only banned ACs in Government offices, but asked the
public servants to report to work at 7.30 a.m. and shut office at 1.30 p.m.
Other than saving electricity, the Government can also hope of getting a more
efficient staff. Will others follow?
* * * *
Andhra Hub of
Counterfeit Currency
Andhra Pradesh is acquiring a notorious reputation with
capital Hyderabad
becoming a hub of counterfeit currency. According to reports, the Task Force of
the State police has recovered a whopping amount of Rs 2.80 crores in
counterfeit notes of Rs 500 and Rs 1,000 denominations. An analysis has
revealed that notes were printed in sophisticated mints in Pakistan and were routed to Hyderabad and various other places through
the UAE. Till end-June, the police have unearthed five major rackets, but fear
that this is only the tip of the iceberg.
* * * *
Bihar & Orissa
Working In Tandem
Bihar and Orissa have bandied together in
accusing the Centre of adopting “double standards” on calamity relief funds.
Adding insult to injury asking the respective State Governments to return money
provided to them under that head. Working in tandem, both parties stalled
proceeding in the Lok Sabha earlier this week when the Union Home Minister P
Chidambaram denied the charge of seeking return of relief money from the
States. Later talking to Insaf, the
JD(U) President Sharad Yadav reiterated his charge. “The Centre gave Rs 1000
crore to West Bengal for Cyclone Alia but wants Bihar
to return the monies given as relief for Cyclone Kosi.” Added a BJD MP, “Ditto
the case with Orissa.” It is another
matter that till yesterday, the two satraps of Bihar
and Orissa, JD(U)’s Nitish Kumar and BJD’s Naveen Patnaik respectively were
being ardently wooed by the Congress prior to the General elections.
* * * *
Assam’s ‘New Born’ Scheme
Grandmother skills are much in demand in Assam, what
with infant mortality figures giving the State health department sleepless
nights. The latter has embarked upon a one-year project entitled Sakhi, (friend), wherein grandmothers or
the elderly village women, well-versed with traditional methods for care of
both the newborns and their mothers, will be hired by hospitals. They are
expected to give tips to the mothers-to-be and help the department bring down
the mortality figures, which in 2007 were 66 infant deaths per million births
as against the national figure of 55. This apart, another scheme, Mamata has been designed for rural areas
to ensure that the newborn stays in hospital care for at least 48 hours after
birth. Gifts such as baby blanket, towel and other childcare items to be handed
to the mothers for the hospital stay are expected to do the trick. --INFA
(Copyright,
India News and Feature Alliance)
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Mamata’s Kolkata Budget:MIX OF SPARK & BUREAUCRATIC TRAP, by Shivaji Sarkar,4 July 2009 |
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Economic Highlights
New Delhi, 4 July 2009
Mamata’s Kolkata
Budget
MIX OF SPARK &
BUREAUCRATIC TRAP
By Shivaji Sarkar
The earthly Maa, Maati,
Manush, Mamata Banerjee was expected to bring in the people’s vision into her
budget. Unfortunately, she has got caught in the bureaucratic trap. The innovation
she may have had in her mind appears to have got lost. She got enamoured by the
high-speed but low-achievement syndrome – bureaucratic malaise afflicting the Indian
Railways for decades.
Mamata made a candid admission: there was nothing hunky dory
during the last five years and promised to come out with a White Paper on it.
She also called her predecessor Lalu Yadav’s projection as unrealistically high
and as the new Railway Minister pointed out that at least one Rs 3400 crore
public-private partnership (PPP) was mere publicity, so she had to give it up.
This apart, the revenue projections too have been reduced
from the interim budget projections, which under pressure from Lalu did not
take into account the slowdown in loading of goods to two per cent of the
target last fiscal. Consequently, gross revenue projections have been reduced
to Rs 88,419 crore from Rs 93,159 crore of the interim budget. Overall surplus
has too been brought down to Rs 2,642 crore from 5,572 crore of the budget. However,
the Railways borrowings and central budgetary support have increased to Rs
15,800 crore, a raise of Rs 5,000 crore thanks to the Finance Minister.
In such a situation, instead of announcing new trains, many
of which are often not introduced, she could have taken a pique at trains like
the pride of the 50s –the Janata Express.
It was a new classless fast train with the latest cabin type coaches, a first
those days. The train still runs, a favourite of the poor, but is in ramshackle
condition. No railway minister has ever taken an interest in it. Even earthly
Mamata missed the opportunity to revive the Janata
and similar other trains. Sadly, the Railways do not need gimmickry by
reintroducing all that is there but strengthen what it has with it.
Though the Tatkal
scheme has been streamlined a bit, it has not been reduced to Rs 100 as claimed
in her speech. It is Rs 100 for Sleeper Class and Rs 200 for AC Class as fixed
charges plus there would be 10 and 15 per cent surcharge on the basis of the
fare. Her speech neither indicates that the seats in this category would be
reduced. Clearly, she needs to make a clear departure from Lalu’s unethical
convoluted Tatkal system.
Again, there is little substance in her Duranot non-stop trains. The Sampark
Kranti non-stop train was introduced by the NDA railway minister Nitish
Kumar. Mamata should have reviewed the technical and track capacity of the
railways before introducing the so-called new trains. She should have ensured a
culture of sustaining and improving what exists. Introduction of every new
train has only resulted in the slowing down of the existing trains including the
Rajdhanis and the Shatabadis.
In her reply, to the Budget she still has the option to
introduce her new vision. She has it. She only needs to push through it, overlooking
bureaucratic objections. Mamata also needs to introduce hop-in and hop-out long-distance
trains free from harassment by railway ticket conductors.
The Yuva train
also looks impractical. It is supposed to be 1500-km all-seated air conditioned
train for Rs 299 and Rs 399. The youth may be strong but can anyone endure a 20-hour
journey sitting all through?
There are, however, some sparks. But these are restricted to
her Kolkata vision. For years, journalists have been agitating about the
Basumati press, a historic institution with nostalgic connection for the Bengalis
during the freedom movement. Bengal’s elite
was associated with it. The State government did little by taking it over to
finally virtually shutting it down. Mamata’s offer to take it over for use by
the Railways is not only to restore the Bengali pride but also to resuscitate
an institution.
In Europe, many such
institutions are kept alive for the new generation take a glimpse of a living
past. It is called industrial archaeology. By default Mamata may have
introduced this here. But, she wants to play politics too. The Basumati press
is with the Left Front government. If it parts with it, then it draws flak from
its cadre and if it doesn’t it loses popular support. Either way Mamata is a
winner.
She has also exhibited that spark in the takeover of the wagon
units of Burn Standard and Braithwaite, under the Ministry of Heavy Industries.
The companies, based in West Bengal, are in
poor health. Their closure would lead to job losses. The decision to take these
over in the so-called “reforms’ – privatise and perish - era shows her real
concern and “mamata” for the Bengal’s poor. She
has also tried to exemplify that an elected leader, rooted in grassroots can go
against the lobbyist-oriented politics of “reform generation”. It would not
cost the Railways much but would instill hope among the poor - a real
prescription to counter recession.
At the same time, the Eastern part has benefited least from
the reforms era. Her concept of using the railway land along the freight
corridor as land bank to set up industry is again a clear rebuff to those
propagating Nandigram-type special economic zones (SEZ) or Singur-type land
acquisition. How much it earns for the Railways is not the issue, but creating
industry on the existing land, next to the freight corridor, should be
considered an innovative approach. It would certainly make transportation
easier and cheaper if properly implemented. Importantly, it could also bring in
an industrial revolution in the East, long stalled by the conservative
socialist-minded people.
Likewise, the past five years had ignored the wagon
manufacturing sector. Now the Railways has decided to acquire 18,000 new wagons
to replace its ageing fleet. It would give a boost to the Railways PSUs apart
from making goods movement, often stuck by derailments caused by poor rolling
stock, smoother.
The PSUs that are likely to gain from her new policies are
Ircon International, a turnkey infrastructure construction company, Railtel
(Telecom), Rites and Indian Railway, Tourism and Catering Company (IRCTC). The
allocation for new railway lines has been increased to Rs 2921 crore from Rs
1100 crore in the interim budget. Apart from taking care of the safety aspects,
the move would also generate business for the sagging public sector SAIL.
But Mamata needs to widen her vision. She need not have
robbed Bihar of the two projects to create a
new coach factory at Kanchpara in her State. Possibly she has settled the score
of losing Dhanbad from the Eastern Railways. Well, the budget has some
difference but it is not different. Would she be able to revise it by the time
she prepares her reply to the budget debate? ---INFA
(Copyright, India News and Feature
Alliance)
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