Events & Issues

New Delhi, 17 August 2011

Regional Development

BOOSTING GROWTH IN EAST

By Dhurjati Mukherjee

The Centre’s decision to overhaul governance in Naxal States is well taken. The scheme, Central India Tribal Plan, is expected to come into operation next year. However, it is hoped that the Central Government has done its homework well and also kept in mind the needs of the entire region. More specifically of the Eastern States, which are lagging behind in many areas as there is an imperative need for their robust development.

Despite being home to 28 per cent of the country’s population, the Eastern and North Eastern (E&NE) States have been lagging behind in key parameters such as per capita income, literacy, education and health care. What is indeed distressing is the fact that the contribution of these States towards the net domestic product for the entire country is less than 18 per cent and remains relatively backward.

While Bihar which was earlier considered a BIMARU State has achieved commendable progress in the past two-three years, Orissa too is fast developing. Though there has been a turnaround in these two States, a lot more needs to be done and the region as a whole has to develop much faster, keeping in view its population increase and the socio-economic conditions of the people.

It is time the question of development becomes a core issue in the East and the North East. In one of its recent reports, the KPMG has delved into the economic status of these States and has come out with interesting observations.

It has stressed on development of agriculture and food processing, steel and mining and infrastructure development, specially power generation and also IT and tourism. Experts have repeatedly pointed out that the green revolution had not touched the East& the NE States and that there is an imperative need to boost up production and productivity. Keeping this in view, the Budget for the current year (2011-12) allocated Rs 400 crores for promotion of the green revolution in the eastern region though the amount is too meagre to improve rice-based cropping system in Bengal, Assam, Orissa, Bihar, Jharkhand, Chhattisgarh and eastern Uttar Pradesh, according to experts.

The decision to set up 50,000 pulse villages in rain-fed areas through an allocation of Rs 300 crores is another good beginning and self sufficiency could be achieved if the programme continues for a few years. The launching of the National Mission for Sustainable Agriculture -- aimed at promoting organic farming methods and combining modern technology with traditional farming practices -- may also yield the desired results as both soil erosion and fertility has emerged as major problems in this region.

Another decision to increase storage facilities of 150 lakh metric tonnes through private entrepreneurs and warehousing corporations has been a good decision. Figures revealed that an addition of 2.6 lakh tonnes of capacity should have been added by this March and that it would go up to 40 lakh tonnes next year. Importantly, the promotion of agro processing centres in rural areas is a vital need, specially in the Eastern region, as this would result in the minimization of post-production losses and production of value-added products for consumers at an affordable price.

In view of the above, the report has very aptly recommended: Creation of farmer cooperatives for pooling of resources, particularly land and irrigational assets; technical and financial support to the farming community; corporatization of storage and marketing facilities to reduce intermediation and wastage in the supply chain; and

stress on animal husbandry to make the second white revolution a reality.

A point not clearly mentioned, however, is the need to focus on agricultural research which has to be field-oriented so as to ensure efficient use of resources and conservation of soil, water and ecology on a substantive basis along with introduction of newer technologies, encouraging production and use of bio-fertilizers and application of bio-genetics for improved plant and horticultural products. Then only can the second green revolution, which is being discussed at every level, become a reality

Regarding mining, the availability of coal and iron ore has attracted 98 million tonnes per annum of steel production capacity in the region. But land availability for mining as also for power generation projects has become a critical problem as the population living on mineral-bearing areas is dependent on agriculture and forestry for its livelihood and has limited means of transforming communities towards alternate sources of income.

This makes land acquisition difficult, more so because of the density of population, most of which is very poor, which is further compounded by current norms/policies that are not too favourable for relinquishing land. However, there is a need to come out with specific suggestions to boost up mining operation, keeping environmental considerations and the requirement to adhere to rules.

Around 100 million tonnes of coal production is constrained in the three States of Chhattisgarh, Orissa and Jharkhand due to inadequate infrastructure. The report has rightly outlined the need for an immediate strengthening of the railway infrastructure in IB Valley, North Karanpura and Talcher coalfields; improving railway sidings and extending lines to pitheads and increasing port capacity in Orissa and West Bengal to enable movement of domestic coal and also handling imported coal. Union Railway Minister Dinesh Trivedi should make a note of it.

At the same time, there is need for development of urban clusters around the present metropolises complete with necessary infrastructure such as water, sewerage and transportation. Special emphasis has been laid on road infrastructure, development of regional airports and upcoming ports in Orissa and West Bengal. For Bihar, Orissa and Jharkhand, this may facilitate revival of manufacturing industry, which is very much needed for job creation. It is a well-known fact that the urban population is low in Bihar (10.5 per cent), Assam (12.7 per cent) and Orissa (14.9 per cent) and the development of such clusters would have a positive effect on the economy of all these States.

In the past, the Government had formulated a Look East policy with the vision that the whole of East & the NE regions of the country and the South East Asian economies are similar and that a strategic push would be mutually beneficial to all. Importantly, building of a Southern corridor and the sub-regional South East Asian corridor will provide these regions access to the Far East countries via Bangladesh and Myanmar. As part of the Trans-Asian Railway agreement, India is expected to build railway links with Myanmar in projects that are expected to cost around Rs 29 billion.

The overall development of the East & the North-East States has become imperative at this juncture not just for economic growth but also to tackle the growing ultra left activities in the region which, experts believe, is the result of lack of development and inadequate opportunities for sustaining livelihood and improving the human development index. The condition of the tribal and backward areas of the region is in a pathetic state and there is need for proper focus and sustained initiative to improve the quality of life of the tribes and the dalits. Clearly, the challenge of development can be met through three elements: “Innovation in governance, risk-taking in industry and enterprise in people”. Will the Centre pay extra heed? ---INFA

(Copyright, India News and Feature Alliance)