Sunday, July 25, 2010

Development should be even, dogmatic,and not political?

Development should be even, if Economic vulnerability be achieved..

Somebody with an Economic touch wrote the Chief Minister Shri V S Achuthanandan’s speech which he made before the elite National Development Council which was presided over by the Prime Minister Dr Manmohan Singh, his council of Ministers, Dr Montek Singh Aluwaliah, Dy Chairman, Planning Commission, with Chief Ministers from all the States attending the same.

Kerala Chief Minister’s speech contained two important grouses. One, Central sponsored Schemes, were altered mid-way, or the financing pattern (Centre-state share in allocation) was tinkered in such a way, or the Schemes were downgraded, so that the number of beneficiaries were lowered. Sometimes, these Central Schemes devised did not have a state flavour, as some states had peculiar geography and some of the Central schemes were obsolete in different States. For example, increasing literacy among the population, Kerala had already attained cent percent in most of the districts with the cumulative average standing at 90.86 as against all-India average of 64.84. Infant mortality rate was 14 male (against 61 all-India), 10 female (against 37 all India) and average 13 male/female (against 55 all India). As far as the banking sector in Kerala was concerned, as against 53,000 banks functioning all over India, Kerala accounted for 2,249 bank branches. While deposits to the order of 70,886 Cr was accounted for by these branches while the advances stood at Rs 47,326 Cr.Moreover, healthy flow of NRI remittances which touched a peak of US $ 20 billion. Kerala, with feeble Commerce Ministry's help posted 100% growth in 2008-9, and achieved 9.4% growth in the first half when all the other states pulled out negative growth figures. The Commerce Ministry gave olive branches to Tamilnadu, Gujarat and Maharashtra. This was stated in the Economic Review(2009-10). But support?

The second grouse exposed by the Chief Minister related to barriers placed by the various agencies of the Central government by refusing clearance for projects of interest to the State sector. Central clearance was taking an inordinate delay. He cited the specific example of Vizhinjam deep water international transshipment container terminal which required no central funding. The Kochi metro project is in deep slumber. The Railway coach factory announced at Alleppey is not even in the preliminary state. The Bharathapuzha Basin Authority could have been conceived which would have helped the people to increase their consumption of per capita water for drinking, if water flow to the sea could be arrested with appropriate planning. We have silent Valley, Thekkadi Forest Reserve. The Fort Kochi beach which was one of the best tourist attractions has become invisible due to coastal erosion. The place where Vasco da Gama landed at Koppal should have been taken over by the Archiological Department and made a national monument. The cenotaph is private property uncared, unvisited at the side of the Koppal beach. Has the Central Government done anything to protect the first trade emporium of India at Kodungallur? The first Church in India built by St Thomas the Apostle in AD 52, the first mosque built at the instance of Malik Ibn Dinar, one of the disciples of Prophet Muhammad (the Second mosque in the world after Medina in Saudi Arabia), and a temple steeped in history and accounted for in Ramayana, Mahabharata, Akannanuru, SILAPATHIKARAM, in the poems of Pathanjali and Kartheyanan, are all here. AncientMuziris (Muchiri) has been a centre of trade, Greeks, Romans, (Yavanas), Jews, Arabs, regularly visited the place. Pliny the Elder, Periplus of the Erythrean Sea, give vivid details of the place which commanded a place on the trade route. Gold coins of Tiberius, Nero were found (Pattanam) in a place around 10 kms from Kodungallur.

As regards power capacity, there is a huge mismatch between peak demand and supply. Kerala’s total power production capacity is 2657.24MW having a consumer base of 1 Cr. Hydroelectric projects contribute 2087.23 MW of Power while NTPC contributes 570.016 MW to the state’s grid. Peak load capacity is 2800 MW. Brhamapura (106.6MW), Kozhikode (128 MW) diesel based power units, Kanzhikode Wind farm produces 2.025 MW. The rest is accounted by Kayamkulam thermal Power station. The state is yet to crystallize its policy of trifurcation of the Electricity Board as envisaged by the Centre. Distribution losses have been a major worry, apart from efficiency, load factor, and collection of arrears. The transmission and distribution losses need lot of correction, meticulous plan. But political will to crack down on power theft and defaulters in payment of arrears is lacking. The state needs to look at renewable and other non conventional sources of energy. Kerala is energy hungry state. If it has to attract crucial industries, the State needs to stay ahead of demand and keep building a surplus capacity. Chronic deficit on the power front would deter investment in the State.

It is a pity that Central investment in Kerala is hardly 2.44% of Rs 7.83 lakh Crore which means, Rs 19,144 Cr is invested in Kerala by the Central Government. This investment translates to job creation of 35,000 people.

Chief Minister’s outburst that the Central Government was bleeding the state white, by thrusting central plans, and the load of ratio of investment on the one hand, and on the another denying and delaying permission for state based schemes, where central investments are not critical.

As a person, who knew the dynamics of getting a plan approved at the Central level, and the passage of time in takes to cut the bureaucratic red tape, a state, which contributes to the literacy, well being of its people, fetches huge foreign remittance which no state does, yet to treat it in a cavalier manner is most unjust. Shri Vijay Kelkar could have done some justice to the state through the 13th Finance Commission. Pranab Mukherjee could have looked at some of the state impediments to growth, Kamalnath, who boasts of having conceived 7000 Km of laying National Highways could have cast his eyes on Kerala Roads, the Agriculture Minister could have looked at Kerala’s pitiable status in regard to rice, wheat availability and the sinking Coconut oil industry, the Power Ministry could have approved some plans for Kerala. What is the use of planning Commission when they cannot distribute money prudently providing cushion to backward states instead of helping states on political considerations. A Pity?

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