Jitamanyu

IN THE MIDST OF GREEN HEDGE AND SILVER HAIR

2012-01-28T07:49:00.001+05:30

I still hold on to a hope that Bhubaneswar would develop to a sprawling knowledge city and would be known, far and wide, as a city of green hedge and silver hair. Dehradun was sometimes described that way. The term would allude to an environment where contended elderly people with silver hair would live happily amidst greenery. Stretching the idea a bit further, I wondered whether this could not mean a meaningful and simultaneous enrichment of both the young and the old. When the Advisor of the Society of Geoscientists and Allied Technologists (SGAT), Mr. BK Mohanty, invited me to the quiz session on the 22nd of this month, I readily agreed; primarily because the occasion would provide an opportunity to be in the midst of the green hedge and silver hair. Meeting some of the best talent in the field that our State produced has always been a great pleasure. Among others, I met the renowned Professor Golak Bihari Misra who retired from the position of Professor in Mining in the IIT, Kharagpur in 1991. He is widely known as an expert in ventilation in underground mining. His expertise was availed of during the construction of the Kolkata underground railway system. He would be over eighty years old but in perfect state of health and mind. I met the evergreen Professor Satya Narayan Acharya, former Vice Chancellor of Utkal University.
“What are the three different things does the name NARGIS is known for?” This question was to be answered in a minute by either or both of the two students of a High School. I was waiting anxiously. Promptly came the answers, like bullets emanating from a machine gun. “(i) Name of a famous actress; (ii) a devastating cyclone and (iii) the name of the world’s seven billionth citizen, born recently in Lucknow.” The answer took most of us by surprise. Twelve High Schools, one each from a mining zone of Odisha, were represented in quiz competition as a part of the state level Environment cum Mineral Awareness Programme (EMAP) this year held in the impressive building of the Society of Geoscientists and Allied Technologists (SGAT). SGAT has been holding this programme every year for quite sometime. EMAP covered this year twelve zones, namely, Gorumahishani-Joshipur ( Iron ore and China Clay); Sukinda-Daitari (Chromite and Iron ore); Boula-Nuasahi-Bangur (Chromite); Matikhal-Berhampur ( Heavy minerals in beach sands and Granite); Panchpatmali-Damanjodi (Bauxite and Alumina); Barbil-Joda- Nuamundi (iron ore and manganese ore); Koira-Tensa (iron ore); Biramitrapur-Lanjiberna-Gomardihi (Limestone and Dolomite); Talcher Coalfields; Ib River valley Coalfields; Lanjigarh (Bauxite-Alumina) and Bhubaneswar (Sandstone and Fireclay). The programme was for the senior level students of Higher Secondary Schools located within the periphery of the mining areas mentioned above. About fifteen schools comprising two students from each school participate in the regional EMAP. From among them are the best teams chosen for the State level EMAP held at Bhubaneswar every year.
During the regional EMAP the students visit the mines; processing units; mineral-based industries; haulage; transportation and loading systems; they visit nurseries; plantations and environment protection measures as well. They are told about identification of rocks; ores and mineral specimen. They appear in a written test and oral quiz. The best teams out of them who come to Bhubaneswar for the State level programme visit the Meteorological Centre; the Regional Plant Resources Centre; the Regional Science and Pre-historic life park; the Regional Museum of Natural History and the State Museum. They get exposure to identification of rocks; ores and mineral specimen; plants specimen and related photographs. They appear in written test; elocution test and an oral quiz. SGAT has been making laudable efforts to encourage the mining community to adopt eco-friendly operations. It has also been drawing the attention of the central and the state governments to the need for framing pragmatic legislations. For sometime the SGAT has been involving the student community in the important area of global concern with the hope that the students, their teachers and the parents would be contributing towards a better environment through appropriate measures. SGAT also makes the younger generation aware of the importance of minerals in economic development.
The event involves a good deal of running around in distant parts of the state. It involves meticulous planning, hard work for activities like setting the questions; arranging accommodation for the participants and their teachers; arranging visits to various places. The efforts of SGAT have made it possible for a student living close to the Bauxite mine of Nalco visiting the mine for the first time. But for the efforts of SGAT, the mine close by would have remained a mystery to the students in the nearby schools. Such efforts sensitise the industries to their responsibilities towards the people living in the periphery. “What makes Mr. BK Mohanty, the Advisor of SGAT, so energetic to organize this event every year?” I asked while addressing the gathering that day. Mr. Mohanty would be eighty years old shortly. Mr Sarangi, the President of SGAT provided the answer to me in his address. “SGAT’, he said, “keeps Mr Mohanty agile and alive.”
Why do I attend this annual function of the SGAT many times I asked myself? I feel I do so as the event makes me aware of my growing obsolescence. Maybe I get to know how committed our teaching community has been in educating our children, Perhaps I get a chance to talk to the children and tell them that they have to do much better to gain competitive advantage in life ahead of them. Every time I return a bit wiser. This year’s knowledge was unique. I realised that Mathematics could be lyrical as well. “Express thirty one (31) by using only one numeral 3”. A team was asked. The students could not answer; nor could I have. We were told the answer as (3x3x3)+3+3/3 = 31. I also learnt that 1729 is the only number that is the sum of two cubes in two different ways--- (10x10x10)+(9x9x9) =1729= (12x12x12)+(1x1x1). The students learnt who Al Gore is and what has been his contribution to the cause of an ideal environment. They were also told that over population; illiteracy; poverty; lack of safe drinking water; depletion of green cover and lack of basic sanitation are the major pollutants and not mining activity.
SGAT has been an ideal forum that demonstrates the commitment of elderly professionals to the need of giving back to the society. It is a case where the silver hair contributes to a luxuriant growth of the green hedge. I was happy about my silver hair and was happier to see the young, agile, efficient and suave civil servant, dear Manoj Ahuja,Principal Secretary to Government of Odisha in the Steel & Mines Department in the gathering also appreciating the efforts of SGAT while displaying his silver hair in gay abandon.
*************

ZERO FOR BRILLIANCE

2012-01-26T13:23:00.000+05:30

I taught Political Science to Post Graduate Students in Utkal University at Vani Vihar as Assistant Professor for about a year before joining the IAS in 1966. I remember the performance of a student whose answer paper I had scrutinised in a class test. The question was to write about the contribution of Mazzini, Cavour and Garibaldi to the unification of Italy. He had written almost six pages , in A4 size paper, on the subject with absolutely no idea of the subject. Luckily the question had revealed that those three had worked towards unification of Italy. Had we asked him on their role in the unification of Germany, I am sure, he would have answered similar way and written six pages. I was taken aback at his ability to write trash so boldly. I remember to have awarded a zero to him for the answer. Now I find that DNA of such genius gets transmitted to succeeding generations as well and the world rejoices at their appearances in various examination halls. The way a brilliant student answered a few questions ‘correctly’ is for you to appreciate. “What is the main reason for failure” he was asked. “Examination” was his answer. “And the main reason for Divorce”? He wrote “Marriage” as answer. “Which State does River Ravi flow in”, was the Question. He replied “Liquid”. “Where was the Declaration of Independence signed”, he was asked. His reply was “At the bottom of the Document.” He too got a zero for his answers.

WE MUST PROHIBIT CELL PHONE TOWERS IN RESIDENTIAL AREAS OF CITIES.

2012-01-21T21:35:00.000+05:30

On many quiet dawns while having my daily walk I used to see a garland of high flying cranes in majestic formation led by the ablest in the group. Such sights are becoming fewer and fewer. We tend to gloss over many aberrations even though these may be happening under our nose. Take the case of crows dying at different parts of the state. It looks as if the days are not far off when we would be deprived of this benign creature which has been, for years, ringing nature’s wake up call at dawn. We may soon be deprived of this gifted scavenger who keeps our cities clean, free of charge. Take the case of the frogs and sparrows; they have become scarcer day by day. This attitude of ours, call it our tolerance or indifference, has led us to a situation where we have chosen to be tolerant even to activities which are positively harmful to our health. The zeal with which we increase the number of kiosks in Bhubaneswar which sell the killer tobacco is indeed amazing. Even kiosks selling ‘healthy’ milk of OMFED flaunt tobacco pouches. We derive pleasure in adulterating milk meant for our young and growing children. We seem to have bought peace with aberrations; we have lost the spirit of combating evils. We look content; even rejoice, at the steady erosion of our valour.

I am discussing today about yet another development. This relates to the sphere of telecommunication. The sector has become especially important in recent years because of the enormous growth of information technology and its impact on the economy. The popularity of cell phones and wireless communication devices has resulted in a proliferation of cell phone towers across Indian cities and towns. While all of us have had our share of wisdom through mobile technology, it is now time to introspect and evaluate the problems that one could face because of cell phone towers being installed in residential areas.

We seem to be unaware that mobile phone towers crowding the city’s skyline are making the air toxic for us. Many people feel that these radiations could be harmful for people living in a 300 meter radius of the towers. Pregnant women and children seem to be in greater danger from cell phone towers than the normal population. It is very unfortunate to see huge cell towers thronging the rooftops in and around the residential apartments, hospitals and educational institutions and this has become more or less a common sight in cities across India. The younger the child, the deeper is the penetration of electromagnetic radiation as children’s skulls are thinner. Children, adolescents and pregnant women could be at greater risk. Radiation related health risks could include memory loss, lack of concentration and digestive disturbances.

In May 2011, the World Health Organisation’s International Agency for Research on Cancer announced that it was classifying electromagnetic fields from mobile phones and other sources as possibly carcinogenic to humans and advised the public to adopt safety measures to reduce exposure, like use of hands-free devices or texting. Some national radiation advisory authorities, including those of Austria, France, Germany and Sweden have recommended measures to minimize exposure to their citizens. Examples of the recommendations are:
 Use hands-free to decrease the radiation to the head.
 Keep the mobile phone away from the body.
 Do not use telephone in a car without an external antenna.
While a person has a choice to use or not use a mobile phone and also has a choice over the extent of use of his mobile phone, a child and a pregnant lady living close to a mobile phone tower has no choice as they have to live at home and willy-nilly suffer the radiation. The state or the society need to intervene in such a situation. Why do we find such towers in residential areas? The telecommunication companies or service providers pay rent for the towers they erect. Property owners find it a good source of income by letting out roof tops or premises for towers. Where competition is high, rent could be as high as Rs30000/- per month in some cities.

It is interesting to find how some people have been taking up cudgels against mobile phone towers in residential areas. For example, Milind Bembalkar, a mechanical engineer, who runs his own business in Latur, 750 km from Mumbai, has been writing articles on the menace in Marathi newspapers and magazines for sometime. When in one article Bembalkar asked readers affected by mobile towers to get in touch with him, he was surprised to receive 300 letters. He also received phone calls from all over Maharashtra expressing concern and helplessness. Activists have realised that law does not help much. They find that Companies first erect the mobile towers and then get them regularised by paying a modest fine to the municipal authorities. Some complain that if a survey were to be carried out, it would show that most mobile phone towers have come up illegally.
It is time we made efforts to ensure that Department of Telecommunications finalised tougher norms for radiation emitting from cell phone towers. When we are convinced that mobile phone towers installed on top of buildings in residential areas could be a threat to human health, we must raise our voice against it. Cellular operators should be made to comply with certain norms. If authorities are slow in ensuring a healthy code, civil society should create a situation that the operators agree to certain norms. For example, no tower should be within a radius of one hundred metres of a hospital or educational institution; residential areas must be avoided; first preference for locating such towers should be given to wooded areas; second preference should be for open or public areas away from residential zones. Erection of towers must have prior permission from the Pollution Control authority and the municipal authority. Many cities have banned installation of such towers in residential area. In Bhubaneswar, however, there seems to be an eagerness for installing such towers in residential area. In BJB Nagar, where I live, I see many towers and apprehend that many more would come. There is need to make people aware of the ill effects of mobile towers in residential areas. A memorandum with the signatures of citizens demanding removal of mobile towers from the residential areas should be submitted to civic authorities. There is need to educate the younger generation on the health hazard of heavy use of mobile phones as well. We need to install hoardings and posters in various towns detailing the ill effects of excessive use of mobile phones and the towers in residential areas. We have downplayed the ill effects of the mobile phone usage and government had put no restraints on installation of the mobile phone towers in residential areas. But after the revelations of the World Health Organisation, government should formulate the laws and guidelines. Such towers which have come up in residential areas must be made to shift to safer zones within one year.
**************

DISTRICT MAGISTRATE FACES A STORM IN THE TEA CUP

2012-01-17T08:36:00.000+05:30

Prime Minister’s visit to a District always meant a lot of activities for the District Magistrate. Minute details have to be attended to to ensure that the visit passes off smoothly. Despite meticulous planning and utmost alertness, there is always a possibility of something going wrong. This is what had happened in my case while I was District Magistrate in 1975 in Sundargarh. Prime Minister was to reach Rourkela. Shrimati Nandini Satpathy was the Chief Minister. She had come; so also did the Secretary to the Chief Minister, Mr Ramakanta Rath. District Magistrate had to issue Pass for selected persons to be present at the Airport when the Prime Minister arrives. The list of the selected persons had been prepared and the Passes were prepared accordingly. These needed to be sent in closed envelopes with a letter to each one of them. The letters were also signed by me. Normally a letter would start with Dear Shri/ Smt/Mr/Mrs. A responsible official was to write the surname or the name of the recipient. In that process some Ministers of Odisha (then Orissa) also received the passes with accompanying letters. Suppose a Minister’s name was Anirudha Misra. He received the letter from the District Magistrate where the officer had addressed him as mere Mr. Misra. After the visit of the Prime Minister passed off smoothly, a few Ministers decided to point out this act of impropriety to the Chief Minister. Clearly this act of the District Magistrate had compromised their august positions. Chief Minister listened to them. I had no inkling of what was going on though I heard whispers of resentment over the issue. Later in the day, I accompanied the Chief Minister in her car to Sundargarh. Mr Ramakanta Rath was also in the car. She consulted her Secretary if she would speak to me on the subject. Mr Rath’s advice I could hear. “In such a situation, District Magistrate’s address to the Ministers can be viewed reverential and appropriate and the issue needs to be closed” he said. The Chief Minister agreed, with a laugh. We had a pleasant journey to Sundargarh.

INDIA BEING BEHIND CHINA IN SCIENCE

2012-01-17T08:33:00.000+05:30

The 99th Session of the Indian Science Congress had its impact on me as well. Our Prime Minister revealed a closely guarded secret that India was behind China in Science. I got worried and resolved that I should catch up with China. As a result, I had a dream, shortly thereafter. I saw in my dream that India had colonised a Planet in a distant Solar system in the galaxy and was hell bent to introduce Democracy with Transparency with the aboriginals there. I was impressed. India decided that the people there should soon have Election. To supervise it the Planet should have a Director General of Elections (DGE). An erudite person named Chawal-Sesna was selected to be the DGE. His first task was to allot Election Symbols to Political Parties. By then many Indian National Parties had set up shop there. Allocation of Symbols would be through public auction, declared Mr Chawal-Sesna. It was interesting that only animals were selected to figure as symbols-- Elephant; Cattle; Lion; Horse etc. The symbol of a calf sucking milk from a protective mother cow fetched the maximum revenue in the auction. I learnt why we are behind China.

CASE OF A DUTIFUL CHAUFFEUR

2012-01-17T08:30:00.000+05:30

Mr Nihar Ranjan Hota was a senior colleague. While he was at Sambalpur as the Revenue Divisional Commissioner (RDC), Northern Division , he had an unforgettable experience which he had narrated to me. Once he was travelling from Bhubaneswar to Sambalpur but had planned to break journey at Dhenkanal; spend the night and attend to official work there the next day. There used to be check-gate a little ahead of the point where National High Way(NH) 42 takes off NH 5. His Driver, known for his integrity and sense of duty, stopped the car at the check-gate and walked up to the staff to let the Commissioner’s vehicle to pass quickly. It was already dark. When the barrier was raised, he returned to the car and drove off. He drove up to the Circuit House at Dhenkanal, a good forty five kilometers away, stopped the car at the portico and opened the rear door to let his Boss come out. Officials were waiting to receive the Commissioner. The Boss did not get down. The good Driver’s response was unbelievably swift. Within minutes,he closed the door with a bang; took his seat and drove off without saying a word to the waiting officials. He drove back again to the check-gate and walked up to his harassed Boss, opened the door to let him to get into the car and drove back to the Circuit House. While the Driver was with the check-gate staff, Mr Hota had got down from the car and walked to a safe distance to ease himself in the dark. Before he could reach his car, it had gone!!

CRAZE FOR FANCY NUMBERS

2012-01-17T08:25:00.001+05:30

Two years ago when I bought a new cell phone connection, the salesman offered me the liberty to choose one from some available numbers and told that numbers which looked impressive, like, say, QMQMQMQMQM or OOOYYYYOOO would be available for a premium. “Such numbers may be more useful for Police Station or Hospital Emergency or Ambulance Service”, I told him and suggested that he should give me any number he likes. “I want a phone connection which works; not a fancy number”, I had told him. He then allocated a lacklustre number that fortunately works as efficiently or inefficiently as any other phone in this city. I had crossed that state of mind when such fancy possessions create ripples in the mind. Maybe I had already tasted the thrill of such frills earlier.
A recall of my experience in this area would be interesting.Government now sells attractive registration numbers for vehicles at a premium. For example if you want a number like, say, 1 or 555 for your car, you pay a price for it. In olden days when government ( or Government servants?) was less commercial and more benign, I had bought a Fiat car in Rourkela in early seventies after I sold my first car, an Ambassador. RTO at Rourkela, Mr Behera, was about to retire shortly. The registration code for Rourkela was about to change—from ORO to OSO. It was entirely his goodness that he volunteered and offered me the first number of the new series and my car got registered as OSO 1. I still remember that he looked happier than I was when he handed me the papers.
Shortly thereafter, the car became known widely in the steel city as the car of the Additional District Magistrate. One day a pious and kindly lady, my wife’s close friend, was returning home in our car. On the car approaching a traffic post, it was received with a smart salute from the traffic constable on duty. This incident caused great turbulence in the humorous lady who, on reaching home kept her and our telephone busy for half an hour laughing and explaining to my wife how she felt to be on cloud nine when the smart police man saluted to an ordinary mortal who is only fit for inconvenient inquisition. I wondered if this was the worth of my dear OSO 1!!

OPEN LETTER TO ODISHA CHIEF MINISTER ON PIPLI GANG RAPE

2012-01-17T08:16:00.000+05:30

Dear Chief Minister
I believe, and, I am sure, many do as well, that in our system, law is supreme and majesty of law is non negotiable. Citizens have certain fundamental rights which have to be protected and defended by the government. Where Government fails; Courts set it right. Police is a very important instrumentality to ensure rule of law and majesty of law.
A girl in Pipili, whose honour was violated, is now fighting for her life; yet the complaint against the culprits could not be registered in the police-station for months. There was no relief from the District Police either.
It is strange that the gravity of the situation and the prevailing rot in the police administration is yet to sink in into the philosophy of governance you seem to believe in. I am sorry, I am using strong words. That is because you seem to be still under an impression that police can use its discretion and not register First Information Report. Do you want us to believe that mere suspension is an adequate step to tackle such intransigence? I refuse to accept such a stance.
I am sure you and your officers are aware that our Constitution has a provision in Article 311(2) (b) which provides for Dismissal without Inquiry. When the victim is in a state of coma, where is the possibility of a normal inquiry for such a grievous dereliction of duty?
I would expect that least that you should do is to dismiss the Police Inspector under Article 311(2) (b). This could be a step to instill discipline in police and make them benign and responsible minions of law.

With regards
PRASANNA MISHRA

STATE BUDGET SHOULD REFLECT GOVERNMENT’S COMMITMENT IN A WELFARE STATE

2012-01-14T18:36:00.000+05:30

In 1970, Indian Detonators Ltd set up their slurry based explosives factory at Sonaparbat in Rourkela. I was then the SDO there and had attended the inauguration. The existing fertiliser factory of the Hindustan Steel Ltd was nearby. Workers of the fertiliser plant used to come to the plant from home either on their own transport or in buses of the Company. We did not have any public transport service in the city. Sonaparbat area in a far end of the Town had the problem of connectivity. The Chief Guest who was perhaps the Chairman of the Company took note of this deficiency in the prevailing urban services and had reminded us in a discreet way that state should never compromise on its fundamental responsibilities. He would have been much more disillusioned today by seeing the extent of service-deficits we suffer. The incoming Budget of the state hopefully would address this issue. I would dwell on a few areas.
The growth of the economy of our state presents a skewed picture. While the state registers an impressive growth for sometime; we are still grappled with severe deprivation issues. A meaningful synergy between industrial growth and agrarian development has eluded us. Rather a confrontationist posture has been emerging that is detrimental to the development of both the sectors. Growth in tertiary sector has been mostly in low end activities. State seems to have opted for deliberate wilting in many critical areas which would have cruel impact on our human resource.
Annual Establishment Review of state government for employees reveals that out of a sanctioned strength of around 5.57 lakh posts of the government, only 4.37 lakh persons are in position in 2010. Vacancy picture has deteriorated over a period of time. Whereas we had 54142 vacant posts in 2001; we have in 2010 as many as 120476 vacant posts. In Higher Education sector 1720 grade-A posts had persons in position; but 1281 Grade-A posts were vacant. This explains the quality of higher education the state government ensures in the state. In Fisheries & Animal Resources sector we have persons in only 79 Grade-A posts; but 363 Grade-A posts are vacant. In Home Department we had vacancies in case of 13460 Grade-C posts most of these would be in the rank of constables and sepoys. As many as 4672 posts in Health sector remained vacant. At the macro level , forty percent of Grade-A posts were vacant. This looks intriguing. This could reflect paralysis in cadre management; it could also provide scope to the government to oblige pliant people with contractual appointments generating widespread frustration among deserving officials waiting for promotion. The fact that the sanctioned posts of around 5.5 lakh have been continuing since 2001 would convey a message that these are useful posts and need manning by suitable persons. When these posts get filled up, financial impact would be sizable. Whether Government would take expeditious steps and fill up the vacancies cannot be said with certainty. I would however feel that it is the bounden duty of a government to discharge its duties efficiently and shortage of staff cannot be an excuse.. Nevertheless this area underlines the financial vulnerability of the government. The incoming Budget should have a satisfactory resolution of this issue.
The other area of concern is the slowing down in the mining sector. Less production of minerals means less of royalty revenue. Transport of minerals by road has been contained. Various factors including the recent hike in export duty to 30% for iron ore would result in thousands of trucks remaining off-road. This development would lead to less tax revenue from motor vehicles. Low sale of minerals would mean less tax receipt. Less number of trucks on the roads means less tax income from Diesel. This development is likely to strain the Budget to some extent. Another area worth planning for relates to the Energy sector. Even in winter we in Bhubaneswar suffer power cut for an hour every day. The vigour of power cut would most likely increase in summer. There could be situation which would make purchase of high cost electricity unavoidable for the Gridco which the existing retail tariff would not be able to service. This would lead to a situation when government would have to extend financial help to the Gridco. This possibility has the potential of straining the state finance.
Urban centres have always been the places for intense commercial activities. Cities have been promoting creation of wealth for the country. Cities provide jobs to thousands of people in various areas of economic activities. We have been witnessing decline of many ancient towns of our state. Urban centres like Berhampur; Jeypore, Rayagada; Sambalpur, Balasore, Bolangir and Baripada are in need of massive rejuvenation. These cities need to have substantial augmentation of urban services. Need is for modern roads; modern sewage disposal system, city transport and more of dwelling units. By promoting urban development we strengthen our tax-base for the future. We need to develop at least one new hill township in the hilly regions of our state. We could develop it as Mohali has developed. We can induce high value economic activities to flow to the new township. Budget needs to reflect this aspiration.
Some seem to be happy at the decline of the contribution of Agriculture to the state’s GDP. They feel that the state’s economy is getting transformed for the better. We need to visit the issue with greater seriousness. The sector has been and will continue to be the job provider to millions of our households. State’s agriculture sector continues to be marked by low productivity and is mired by traditional approach. Budget needs to indicate the new thrust areas and must outline the path. The state needs to accept value addition as the new mantra for the sector. Properly handled, the sector would not only contribute much more to the SDP, it would provide remunerative jobs to many more households than what industrial sector would. We need to make a comprehensive programme for a cold chain and it should get reflected in the Budget.
The state has suffered badly because we did not promote any power project—either hydro or coal based thermal-- for a decade . We should not make similar mistake for solar power. Currently, solar power costs much more to produce than thermal, but this is expected to change. Some experts have been forecasting that cost of solar power would stabilize at Rs 8 in 2014. In the next 10 years, the cost of solar power is likely to drop to match or even beat grid power. According to the central government's estimates, the cost of solar and thermal power will align by 2030. In 10 years solar power is expected to grow rapidly. Signs of that are already visible, with the central government aggressively pushing its agenda to build grid-connected solar capacity of 20,000 megawatts by 2022. Only megawatt-scale plants are eligible for government subsidy. In the past two years, solar plants with a cumulative capacity of 144 MW have begun pumping electricity into the grid. The bulk of these came up only in 2011, and the pace is picking up. A few states including Gujarat are going ahead with bold initiatives in this area. We must do likewise and this resolve should get reflected in the Budget.
Let me hope the coming state Budget reflects the values and priorities of Odisha and its people. No one should have ground to believe that our government is short-changing the people.

********************

HOLISTIC VIEW ON IRON ORE MINING IN ODISHA WOULD BE HELPFUL

2012-01-07T18:11:00.000+05:30

In 2004, Prof. Ray Baughman of University of Texas created a material that is stronger than steel, transparent and yet very light. A sheet of the size of one hectare would weigh just 280 grams. Carbon nano-tubes, a very thin sheet of graphite formed into a tube, are up to 100 times stronger than steel and six times lighter. These are hardest, stiffest, strongest materials known and are among the world’s best conductors of heat and electricity. They can carry some 1000 times more electrical current than copper wire. Nuclear and solar energy may ultimately make coal redundant for energy generation. This would ensure that future generations will never have to worry about possibility of energy resource exhaustion. Further, technological developments are taking place at such a fast pace that one cannot really visualize what the future generation may require, let us say, 100 years hence at that level of technological developments. We are well aware of the plight of mica industry where India had monopoly of mica industry. Consequent upon India putting export restriction, synthetic mica was developed with better chemical and physical properties. As a result, today there is hardly any demand for mica in India as well as abroad. Neither has the present generation taken any benefit of mica resources nor will the future generation; since synthetic substitute has taken over its usage. There is therefore need for a pragmatic approach towards the scale of exploitation of our mineral resources in general and of iron ore in particular.
Are we, in Odisha, mindlessly depleting our iron ore resource? An interesting picture emerges from the statistics compiles by the Indian Bureau of Mines. During the period from 01-04-2005 to 31-03-2010, production of iron ore in Odisha was 338 million tons. During this period the reserve of iron ore improved from 4761 million tons (as on 01-04-2005) to 5930 million tons (as on 01-04-2010) showing net increase of 1170 million tons. The discovery of resources is through sustained detailed exploration which again is possible if mineral bearing areas are exploited and there is a market for iron ore. It is interesting to note that resources of hematite iron ore in Odisha that increased by 1.17 billion tonnes over the period of five years (between 1.4.2005 to 31.3.2010) were from the mines held by the private miners who have to continuously explore to keep up production to feed the domestic industry and, in case it is not required, such as fines, to export. None of the steel plants who have captive mines have reported any enhancement in resources for the simple reason that the areas available with them are far more in excess and they find no compelling reason for exploration. Mine owners, therefore, need to have resources to continue exploration and discover more resources. Government should have been happy if any industry within its domain has surplus profits which enables the Government (State and Centre) not only to generate more revenues but also provides an opportunity to the industry to deploy the surplus in exploration and development of the mines and in down-stream industries.

Unfortunately, Iron ore has been subjected to several kinds of impost in India. Apart from 10% of royalty (the highest in the world) which goes to the State Government, the Central Government has imposed export duty at 30% ad valorem on the exports of iron ore. Further, for domestic sales, there are sales and other municipal/local taxes. In addition, iron ore mining industry has to pay welfare cess and in case the mining area is in forest, then forest produce cess, compensatory afforestation charges as well as Net Present Value ranging from Rs.5.60 lakhs to Rs.9.20 lakhs per hectare. In addition, there are taxes for air, water, etc. under Environment (Protection) Act, 1986. If all these taxes are added together, it will be evident that the Indian iron ore industry is the highest taxed industry in the world. The Mineral Resources Rent Tax (MRT) @ 30% to be imposed by the Australian Government w.e.f. 1st July 2012 is applicable only for iron ore and coal at the ex-mine value. In the 30% MRT, royalty and other taxes charged by various State Governments in Australia, are adjusted and the balance only would go to the Federal Government.
In spite of huge collection of royalty, the basic infrastructure facilities including road, etc. in the mining areas in Odisha remain far from satisfactory. Condition of schools, health services continues to be pathetic causing severe problems to the local people as well as to other commercial activities. Whereas the States like Gujarat, Maharashtra and Chattisgarh are putting 10% of the royalty collection for infrastructure development in the mining areas, Odisha does not earmark any funds out of royalty collection for such infrastructure activities. In fact, we understand that private mine owners of Keonjhar/Barbil region contributed on voluntary basis more than Rs.100 crores for road development but the money is still lying unutilised. The railway sidings have no storage facilities for iron ore despite huge freight being charged from the miners by Indian Railways
An impression is promoted that miners have been making super nominal profit. In fact this is a myth. Rather miners have been incurring loss in export of fines. Railway station-wise net profit/loss to the miners in the eastern sector has been worked out. It is found that except iron ore fines of 63/62% Fe exported from Jaroli railway station through Paradip and Visakhapatnam ports, where there is a nominal profit, in case of the iron ore fines exported from all other stations in the eastern sector miners are making loss. In case of exports of iron ore fines of 60% Fe and 58% Fe, industry is making loss from all stations. For a distance of 660 Kms. from Barbil to Paradip, the Railways charges Rs.910/- for iron ore supplied to domestic steel plants but for exports, the charges are Rs.2879/- i.e. Rs.1969/- per ton more. Similarly, for a distance of 395 Kms. from Barbil to Haldia, the charges will be Rs.587/- if supplied to domestic steel industry but if it is exported, this will be Rs.2842/-, Rs.2255/- more.
Why then should the miners be exporting iron ore if they are making loss? The reason is that unless fines are evacuated from the mines constantly, there cannot be continuity of production of lumps to be supplied to domestic sponge iron/pig iron/steel industry. The price of lumps being good in domestic market, it helps the industry to make up the loss incurred on exports of fines. Even if we take the maximum prices at which the lumps are supplied to the domestic industry and adjust the loss being incurred on the export of iron ore fines, there is no super normal profits of 80% of the sales revenue.
We need to restore normalcy in the sector immediately. It seems now to be in a state of multi-organ failure. Rule Book needs to be followed as much by the miners as by the government. Illegal mining must be curbed by all means but legal mining must be promoted. The attitude of the Odisha Government should not be anti-industry which would be the reason that despite being in possession of huge natural resources and long coast line, the State remains one of the poorest in the country.

**********************************

LIGHTING THE PYRE OF LOK PAL WITH CROCODILE TEAR

2011-12-31T14:37:00.002+05:30

On the 13th of July 2011, I went to the office of the Revenue Inspector in Kalpana Area of Bhubaneswar in the evening and was happy to see the Inspector still working . I was interested to know if I had paid the rent for my homestead land in Bhubaneswar for 2010-11. The official expressed his inability to let me have the information readily and advised me to wait for a fortnight or so. I should have paid the rent for the year even though it could have meant paying the rent twice. I was perhaps a bit obstinate in assuming that I must have paid the rent and would have misplaced the receipt. On that assumption, I paid the rent for 2011-12, the current year, and the helpful Inspector gave me the receipt. I thanked him; though honestly I was annoyed that the Inspector could not let me help me know whether I had paid the rent for the previous year. I recollected my days as SDO in Bonai sub division in late sixties. The Revenue Inspector of Gurundia had always impressed me. He was a person in his late forties and with a heavy body. He did not know cycling; yet he was effective and had total grip over the subjects he was handling. His jurisdiction was very large--- coterminous with the Gurundia Block. He always collected the entire dues of the government for the year. The Tenant ledger he would sit in front of was always impressive and one got to know immediately for which year a tenant had paid the rent. On the 13th of July of this year, if he was the Inspector of Revenue in Bhubaneswar, he would not have disappointed me. Things have changed over years; for the worse, for the citizens. Gurundia area of late has become a favourite zone for the extremists. I visited the Revenue Inspector’s office again, on the 19th December and volunteered to pay the rent for 2010-11 assuming that I had not paid the rent for the year. I was advised by the Inspector to go the other room to pay the rent. A gentleman dug out a slim note book. This was surely not an approved Register in the office of the Revenue Inspector. He looked for some entry in the note book and without any convincing clarification whether I was in arrears, accepted my payment for 2010-11 and issued a receipt. The rent receipts I got from the Inspector’s office in July and December had a stamp that the Revenue Inspector received the payment from me “without prejudice” which would mean that the mere acceptance of rent from me does not prove my ownership of the land. I have the record of rights in my favour; the Inspector would be aware of that; the Tenant Ledger would have my name as a tenant; yet I would receive a receipt of ad hoc nature. This experience shows how disorganised government offices have become. Government talks about e-governance. How long will it take to bring the Tenant Ledger along with other related records online so that I would know my payment-status and can make online payment?
Indian citizen witnesses more of chaos and only a modest dose of order in public offices. The hapless citizenry has got used to it and has accepted it as a normal phenomenon. He has no other alternative to take any other view. In such a situation if a sensitive citizen feels aggrieved when his legitimate grievance does not get redressed after one visit to the official concerned and he narrates his tale of woe to a friend, it is very likely that the friend would find fault with him and advise him not to lose patience so soon and realise that in government working, delay is not only normal but legitimate. We have learnt to see virtue even in an oppressive and exploitative system; thanks to the overdose of negativism we continue inhaling every day. Payment of speed money has assumed legitimacy; jumping the queue looks normal; harassment appears benign; humiliation has become a non issue. All these however have left a lingering rancour in the heart of millions of citizens. People found in Anna a messiah who was sensitive to the silent agony of the oppressed and who had the courage of conviction to call a spade a spade. We found that this man was speaking and standing on our behalf. Anna soon became an icon who boldly put forth a demand before the government to frame a law to punish the corrupt. He emerged as a crusader; he was in great hurry as we had been suffering far too long.
The country witnessed a new phenomenon--- strong articulation of the polity which was strange to the politicians’ ears so long accustomed to language of sycophancy; humility and begging. The voice had the potential of heralding a new era for governance. People in government were used to relishing their MAAIBAAP image which justified populist programmes emanating from the top and going down to the people.It has been always a situation where the high and mighty would grant some benefits to the subjects. Now a new situation has arisen. Civil society through Anna was asking for a specific legislation—wholly citizen-centric and arrayed against the high and mighty. Civil society was now outlining the probity parameters for the rulers and insisting that transgression would be visited by severe punishment. The well fed political class naturally was averse to Lok Pal legislation in private but competed with one another to eulogise in public the incoming institution. Anna and his team were subjected to liberal dose of humiliation. A myth was created and propagated that Anna was posing as someone who is above the Parliament. All that Anna wanted was India’s Aam Admi needed protection from corrupt baboos and netas . He wanted Aam Admi to enjoy his share of the fruits of development. While Anna wanted a charter for the citizens, he also wanted an enforceable code of conduct for the rulers. There was never even a whisper about Anna posing a challenge to the supremacy of the Parliament. It was only a well engineered slogan of people with small mind.
Political class avoided reaching a consensus on the draft legislation while each political formation talked loudly on the need for a strong Lok Pal. The nation witnessed how the Bill could not be voted in the Raja Sabha which was adjourned sine die when the clock struck the midnight hour on the 29th of December.The outcome was exactly as expected. No politician wanted to sign his death warrant as many of today's politicians would die of suffocation in the absence of unfettered privileges as a fish would,taken out of water. Citizens should not now raise their hands in despair. They must not let the process of articulation die down. They must strive for and legitimately expect that citizen-centric governance need not have to wait for a central legislation on Lok Pal.Government institutions must function well. The office of the Revenue Inspector must function properly with regular supervision; so also other public offices. The states should bring in legislation on Lok Ayukta without waiting for a central legislation. The Lok Ayukta should have its own investigating and prosecution wing and the Chief Minister should be under the purview of the Lok Ayukta. The crusade of Anna must continue to let the country have an adequate law on Lok Pal. I would not like to accept that the politicians have lighted the pyre of Lok Pal with crocodile tear.

*****************************

SAMATWAM YOGA UCHYATEY-- WHY DEVIATE FROM NATURAL LAW?

2011-12-24T12:33:00.001+05:30

Severity of winter in Delhi this year was just setting in on the night of the 12th of this month when we three siblings and the ladies decided, in deference to the chill, to cut short our conversation on the garden of my brother’s house after dinner and both of us preferred to get into the waiting car to return to our Hotel. It was ten in the evening; but my brother’s young lawyer son had not returned home from the law firm where he has been working for over a year now on completion of his law course in the Hyderabad National Law School. The lawyer son of the other brother working with a senior lawyer in Delhi for a few months now, also missed joining us for dinner. He too returns home late though not as late as his cousin. Daily habits of the young generation are now at variance with the prevailing pattern in many households. My father used to listen to the evening news at nine everyday and the time-beep heralding the news reader used to be the signal to his children that father would retire for the day after listening to the news for fifteen minutes. I would prefer to listen to the news and follow my father’s habit of going to bed after the news would be over. Even minor news used to sound great when read by the celebrated Melville de Mello. Midnight BBC news at five thirty in the morning in India used to be my obsession and my body-clock would ring the wakeup call in time. I grew up around this daily schedule. Innovations in the television programmes like 24X7 news made deciphering real news increasingly difficult and steadily induced me to focus my contact with the television set confined to only a few Hindi dramas in the evening. This pastime of innocent entertainment keeps me occasionally awake beyond eleven in the evening; but I would generally have my walk around five thirty in the morning in winter and five in other seasons. Our daughter by and large followed our schedule though she had reluctance in leaving bed early in the morning. I find my brother and his wife getting used to the totally different daily schedule of their son. The young man has a set of keys to ensure entry to the house late at night without disturbing the parents. He earns a handsome salary; almost at par with his father; works hard and is shaping to be a first-rate professional. But he does not see the red glow in the eastern sky when the sun rises in the morning; nor is he ever awake early to enjoy the majestic early morning calls of the cock. I wonder if he is doing the right thing by this slow conversion to a nocturnal creature. Dhananjaya is not alone in this transition; many brilliant young boys and girls now are in the same boat.

The other day I came across an interesting analysis of the advantages in moderation in our eating habit. A new study has revealed that eating less activates a molecule for brain-longevity and helps the brain stay young. Many studies have suggested that obesity is bad for our brain; slows it down, causes early brain aging making it susceptible to diseases like Alzheimer’s or Parkinson’s. On the other hand, caloric restriction keeps the brain young. A team of Italian researchers at the Catholic University of Sacred Heart in Rome have discovered that this molecule, called CREB1, is triggered by ‘caloric restriction’ (low caloric diet) in the brain of mice. They found that CREB1 activates many genes linked to longevity and to the proper functioning of the brain. CREB1 mediates the beneficial effects of the diet on the brain by turning on another group of molecules linked to longevity, the ‘sirtuins’. This finding is consistent with the fact that CREB1 is known to regulate important brain functions as memory, learning and anxiety control, and its activity is reduced or physiologically compromised by aging.

Avoidable life-style like sleeping too late and waking up late; over eating; skipping breakfast ; liberal recourse to medicines including sleep-inducing pills even without advice of doctors; indulgence in fast-food; love for deep fried snacks and indulgence in intoxicants including tobacco has been making thousands of young men and women susceptible to ailments which would have severe impact on the length and quality of the working life of these well educated youth. They know that intake of fresh vegetables would be desirable; yet they would go in for food in restaurants where very often they would settle for spicy and oily dishes. The other day the revelation of an old friend of mine was shocking. He has a family in his house that looks after my friend. The family has three members including a child. Therefore food is made in the house for four persons including a child. They consume at least eight litres of cooking oil per month. My advice to him was to curtail the consumption drastically. “We, five consumers including our support staff, consume 1500 ml of oil per month” I told him. I had to make efforts to make him believe that I was honest.

Many in the society are silent persons by temperament. They prefer to work and read; they would avoid a crowd or commotion. While this trait need not be decried, I would feel that people should not be averse to engaging themselves in lively and healthy discussions. Intellectual conversation promotes efficiency of the brain. Positive thinking is a sure way of keeping our brain in shape.

We do not limit our crusade against our natural endowment only to these aberrations I have narrated above. We have gone beyond. How many of us, including the brilliant ones of the emerging generation derive pleasure in writing by hand? Calligraphy used to get reflected many a time in letters written to friends and near and dear ones. Letter writing is declining. I had great pleasure seeing my grandson writing by hand when he was younger and was completing his home-work. Now I have started seeing his feelings through e-mails. I only hope he does not abandon writing by hand when he grows up. Regular writing by hand—not limited to putting our signature or writing a cheque, keeps our reflexes strong and the fingers agile. Handwriting is a reflection of the state of the brain.

Sadly we seem to be under the impression that the human body is strong enough to withstand relentless abuse. We are wrong. Let us not drift too radically too fast. Dhananjaya and his cousin Varun may keep this in mind and ensure that their friends too enjoy the scene of the rising sun every morning. Bahagvad Gita speaks about SAMATWAM YOGA UCHYATEY. A nice example of the precept is the Anantasayam posture of Lord Vishnu. Appreciation of this precept would make our young generation aware of the virtue in being in peace with self. It will make them see virtue in moderation. They may be convinced that it may not be wise to tinker too much with the law of nature.

**********************

FDI IN RETAIL COULD CREATE VALLEY OF FLOWERS IN ODISHA; LET’S NOT OPPOSE IT.

2011-12-03T14:26:00.000+05:30

Sometime in 2007, a representative from a local TV channel contacted me over phone and sought my views on the ongoing efforts of Reliance Retail to set up outlets in Bhubaneswar. This development had caused some commotion in different parts of the country. “I am supportive of the initiative of Reliance Retail,” I had told the person from the TV channel. He invited me for a live interview. I accepted it. My views along with the views of the person opposing it were telecast. A few days thereafter, I was again invited by the same channel to a programme known as Jana Manch. I accepted the invitation and suffered the journey to the studio, away from the city, in a ramshackle hired vehicle. There was a lively debate on the issue. At one stage, a gentleman, from the trading community, in the heat of the moment, even cast aspersion on me and suspected my motive. He would have persisted with his invective, had my friend, Panchanan Kanungo, also on his side in the discussion, not effectively restrained him. I suffered that experience but stuck to my stand that the advent of Reliance Retail in Bhubaneswar would have no adverse impact on the existing shops; but would generate a new marketing experience. Subsequently, Bhubaneswar, thankfully, hosted such outlets. When I buy frozen chicken lollipops or frozen chicken nuggets or good apples in an outlet of the Reliance Retail or its associate, I realise that I was right when I had raised my voice for it. I feel happy to see some local products on the shelf of these outlets; I am also happy to see the outlets opening for business every morning and transacting business till late evening. I compare these outlets with the kiosks, amidst muck and slush, in the famous daily market in Unit One of Bhubaneswar where bulls; dogs; motor cycles; bicycles compete for space with human consumers; where business hours are erratic and dependent on many variables; where on many occasions I reach a stage of hypoxia. Outlets like Reliance Fresh or Big Bazaar or The World offered a new marketing experience to the consumers in Bhubaneswar. Notwithstanding my liking for these outlets, I continue to patronise my neighbourhood shop as well and occasionally hold out benign threats to the owner that I would switch over completely to the modern outlets unless the décor and display improved in his shop. This has worked. The shop looks reasonably presentable now.
We are presently in the midst of a great outcry over the entry of FDI in retail. The ongoing session of the Parliament has been affected due to opposition to the decision of the Cabinet allowing 51% FDI in multi-brand and 100% FDI in single brand retail business. I would go along with the Prime Minister and also the Akali Dal and look forward to early implementation of the decision. Let me explain why I am for it. This decision would benefit the consumers; it would strengthen the rural infrastructure and help the primary producers. Current size of organized retail in the country stands close to $ 28 billion —a mere six to seven percent of total retail business in the country. The total retail market is estimated to grow to $ 1,250 billion by 2020, of which only 21 % would be in the organised sector. Commerce Minister, Anand Sharmaji, has clarified that the new policy would create 10 million jobs over three years and the entry of FDI will not affect smaller domestic retailers. I agree with him. Government have decided that a minimum FDI of $100 million (about Rs 500 crore) would qualify for the new dispensation; half of the FDI would have to be invested in the back-end infrastructure like cold storage, soil testing labs and seed farming. Foreign companies investing more than 51 per cent in single-brand retail stores must source at least a third of their products from small domestic industries or village craftsmen. The retail chains will be allowed only in cities with a population of more than 10 lakh as per the 2011 census. There are about 53 such cities now. Odisha has none; while neighbouring West Bengal has two; Chhattisgarh two; Jharkhand four and Andhra Pradesh three such cities. At present, India allows FDI only in single-brand retail chains like Nike, Louis Vuitton with a cap of 51%. It also permits 100% foreign investment in wholesale cash and carry format. Big chains like Wal-mart have set up their joint ventures in India, waiting for their full scale entry into multi-brand retailing. With all these safeguards there should not be any ground for opposing the decision unless our plan is to play to the gallery.

It is encouraging to find that the major home players like Reliance Retail; Future Group and Aditya Birla Retail are confident that their business will go on as usual. Many feel that global players will find it hard to make business difficult for the desi operators. This is primarily because Indian space is wide enough to accommodate not only the small local players but even the foreign big players. Captains of Indian organised retail look up beat; they enjoy the advantage an early bird does. Many of them have sizeable presence in different parts of the country and they are still expanding. Some of us would recollect the outcry in Bangalore years ago when Kentucky Fried Chicken made its entry. While in England in early eighties for a few weeks, Kentucky Fried Chicken used to be my favourite destination. I went to the Bangalore outlet with my grandson. The six year old boy liked the experience; I did not. I remembered the fabulous ambience and taste of food in Haldiram’s spacious outlet on the Gurgaon-Jaipur Highway. This illustration shows how consumer’s preference would ultimately determine the success of the venture. Consumers need not be held captive by a group wedded to anachronism and obscurantism. They must have a choice.

We are aware how involvement of numerous intermediaries between farmers and consumers escalates prices for consumers while denying reasonable returns to growers. Producers’ share in the final price paid by consumers is often low, less than 30 per cent for perishable items like vegetables and fruits. This is the reason why despite the high rate of inflation on food items, farmers do not get real benefit of high consumer price. Because of this skewed market mechanism, farmer continues to be indifferent to the need for higher production and productivity. Direct purchase by the retailer from farms always benefits the small farmer. Such farmers in Punjab are selling to Bharti Wal-mart ever since it opened its first cash and-carry store in Amritsar. Large retailers can expect to save 10% to 15 % in commissions by purchasing fruits and vegetables directly. Consumers and producers stand to gain in this situation.

Promoters of organised retail in our country encounter various constraints. We are deficient in infrastructure of the scale available in China or Brazil. Our cities experience frequent power outages; urban traffic continues to be chaotic; rural roads are speed-arresters. Our trucks cover less than 400 kilometres per day compared to 700 to 800 kilometres in the developed world. These deficiencies have led to a situation where forty percent of the produced fruits and vegetables rot before being sold. When foreign players would come they would have to invest in the infrastructure and that will be to the advantage to our producers.

Reportedly, Chief Minister Neveen Patnaikji is against the decision of the central government. Prime Minister has indicated that such of the states that do not agree to the decision are free to be out of it. Though no city in Odisha would now qualify for the outlets, the state government should take advantage of the new policy and facilitate growth of back-end activities that would make Odisha figure in the supply chain of the foreign players. We could work towards development of cold chain between Vishakhapatnam and Phulbani. It would not be a wise policy not to facilitate, say, intense floriculture and horticulture activities in Kashipur-Thuamul-Rampur-Belghar region. Can it ever be an acceptable state policy that would only facilitate spread of extremist activities in the absence of any worthwhile productive activity in the region? I am sure the neighbouring Arakku valley in Andhra Pradesh would soon turn to be a valley of flowers and the produce would get sold in coming years in Wal-mart outlets when these come up in Andhra Pradesh. It would be pity if children of Kashipur-Thuamul-Rampur-Belghar belt would not have similar activity before them and would be doomed to witnessing only gun trotting extremists digging in in the region. Government of Odisha should, therefore, revisit the issue. The new policy deserves a national consensus.
***************************

WHY UMERKOTE? WHY NOT BEDAGUDA?

2011-11-26T17:01:00.003+05:30

On the 22nd of November, on his return from Koraput and neighboring areas, Swayam wrote to me “As you know, for the last few days, most of us were out to Koraput. Just came back this morning. Apart from Crux Power’s stall in the Parab, we did a few activities of "Yuva For Sewa". We surveyed one interior village and then went to a village called Bedaguda having only 18 houses. It is a few kilometres away from Jeypore and there is no road connectivity. We trekked for near about an hour from the base village and reached there. The villagers were very poor. We gave them 18 Kiran (solar) lanterns for free. We raised the cost from our donors. We have identified 40 such villages in Koraput area and will look forward to doing something there in the coming days. Look forward to meeting you soon and updating you further.”

Swayam Prakash Baral is a young man, in his early thirties. He had spent some years in England; studying and working. Chandrashekhar Mishra was an investment banker. Both have come back to Odisha, their home. Chandrashekhar and Swayam are part of Canyon Consultancy Pvt Ltd. Apart from their commendable enthusiasm to make solar power enter meaningfully in Odisha—in this area they have been stonewalled so far by indifference of the government as well as our society—they have an admirable passion for social work. They regularly spend some time with us; perhaps because I and my wife like to listen to them and we smile while they dream. Swayam also sent a few photographs taken in Bedaguda. Two of the photographs conveyed to me a lot, in their eloquent silence. Let me write first about the sweet innocent child with the solar lamp in hand. The accompanying photograph shows her. She looks to be about eight years old; born and brought up in Odisha while the state has been having the same popular leader as the Chief Minister. She came to the world in the twenty first century when science and technology are making spectacular progress to which talented women have also made a lot of contribution. This girl was surely entitled to partake in the process of progress. At her age she should have been radiating brilliance and exhibiting great intelligence. A cruel environment, however, has stunted her potentiality and she is growing in an environment of deprivation and gloom. It is admirable that Swayam and Chandrashekhar with a couple of their colleagues decided to climb up the hills and reached Bedaguda. They probably went there as they thought no one else would. Finding the inhabitants in great need, they decided to hand over eighteen solar lamps to the needy hands in the village. The other picture showed the village houses; none of them appeared to have been made under the Indira Awas Yojana though those poor villagers would have been entitled to have pucca houses under the programmes. One tends to believe that a person eligible for various poverty amelioration schemes in our state always encounters a phenomenon called transaction cost and wherever this cost exceeds the affordability limit of the person concerned, he is deprived of the benefit of the programmes. With this cruel exploitative dispensation, the weak and the poor lose out to the wily and cunning even if they are not eligible for these benefits.

Swayam and Chandrashekhar visited the village when the neighbouring Umerkote area of Nowrangpur District was witnessing the Tandav of Democracy. Many would perhaps describe the prevailing goings on as orgy though for me Tandav is appropriate. Press reports about the camping and campaigning by thirteen Ministers of Odisha and more than thirty MLAs of the ruling Biju Janata Dal for the bye-election to the Umerkote Assembly seat following the murder of the sitting MLA belonging to the ruling Party. Compulsion of the situation seems to have prompted even the Chief Minister, despite his leg injury, to visit the Constituency by air and address the voters at Umerkote and Raighar. This was the occasion when the Chief Minister stepped out of his residence after many days after sustaining injury in the leg that had prevented him from attending even the state Secretariat. One wonders why the ruling Party has mounted such an elaborate and expensive campaign. What is at stake at Umerkote? Defeat of the BJD will not lead to the fall of the government as the Party has a huge majority. It is also not true that its defeat in Umerkote would set in motion a domino effect, hastening the mood of disillusionment among the voters about BJD which may lead to its defeat in the next general election. In the bye-election in Laxmipur some years ago, the Congress had won and BJD had lost despite BJD’s expensive and comprehensive campaigning. This victory of Congress did not get reflected in the next general election. The only stake at Umerkote appears to be vanity of the BJD leadership. The posture also shows that for the leadership, winning election is much more important than governance.

Irrespective of the outcome of the bye –election, I feel the ruling Party and the Government should spare some time for serious introspection and ponder why after their rule for over a decade, our state still has millions of households lacking even basic amenities of life and why the members of these households continue to be victims of very low quality of life. The Party and Government should ask their conscience if it is a humane approach to turn a blind eye to the divine glow in the eyes of that innocent child and of many other similarly placed children. They should ask their conscience if in such a situation of gloom in millions of households in the state, they should be continuing with the indulgence that is being displayed now in Umerkote.

The innocent girl of Bedaguda deserves a kindly treatment befitting her natural endowment. I would humbly request the Chief Minister to reach out to her through the government network and arrange for her free education in the Kalinga Institute of Social Sciences run by Mr Achyuta Samanta. That perhaps would be a modest penance for the Umerkote indulgence and would set right the priority of the government. I feel that important people in the government including the Chief Minister should not have been anxious to rush to Umerkote; they should have responded to the feeble calls from thousands of Bedaguda like villages of Odisha.

*************************

THE POOR IN ODISHA CANNOT AFFORD THE DEMISE OF MFIs

2011-11-19T15:21:00.000+05:30

Why are our farmers increasingly committing suicide? Many people would hold oppressive and insensitive governance responsible for such a situation. Let us take the case of those farmers of Bolangir District who, in good faith, temporarily transferred over 350 acres of their land for three years to some people of Delhi and Agra. To their utter surprise the farmers found that the lessees had completed registration of those lands in their names and swindled them through connivance of people in government. The Revenue Divisional Commissioner reported to government in 2007 recommending action against the concerned people. The concerned file has been lost in the Revenue Department of the Government. If cunning people can circumvent laws and rules and get away with ease, one gets a feeling that governing apparatus is working more for such elements of the society to the detriment of the innocent. In such a situation the hapless citizens lose their balance of mind and some take the extreme step to end their lives. Yet, in most cases government washes off its hand and refuse to own responsibility by passing on the blame to others. In Andhra Pradesh, the Self Help Groups (SHGs) implementing the state government-led programmes reached 54% of the rural households, followed by moneylenders (37%) and MFIs (17%). Yet the MFIs, without any independent investigation, have been blamed for the suicides, as I learn from a statement made by Mr Samit Ghosh, Managing Director, Ujjivan Financial Services.
MFI sector which reached out to the poorest of the poor and added meaning to the slogan of financial inclusion today are gasping for life. On the 22nd of this month Sa-Dhan is organizing the Microfinance Roundtable at Bhubaneswar with the objective of meaningful revival of the MFIs in the state. I would expect that the state government would look at the sector more kindly and appreciate how the indifference of the Banks has spelt disaster to the sector and a situation has been created to add more misery to the lives of the poor. Sa-Dhan is an association of 251 member-organization from 19 states of the country and its Odisha Chapter has 26 member MFIs having their head office in Odisha and 9 national MFIs with the branch offices in the state. The microfinance institutions operating in Odisha reach out to more than 2.5 million clients. On 31st October,2010, these MFIs had an outstanding of over Rs 1800 crores. MFIs confined to Odisha cover 12 lakh clients and their outstanding is around Rs. 500 crores. These institutions are reaching out to the women in backward Districts and disadvantaged communities. Almost all the state level MFIs are NGO based MFIs and have been serving the community for ten to fifteen years by addressing different issues related with health, sanitation, education, child labour & women trafficking, women empowerment, human rights, tribal development, employment generation, livelihood support etc.
It is a paradox that such work is not formally recognised. The sector has been still kept outside the purview of the state and district credit committees. After years of lobbying, the Association of Karnataka Microfinance Institutions (AKMI) has been inducted into the state-level bankers' committee (SLBC). It is necessary to have the representation of Odisha MFIs in the SLBC. I hope the state government would take favourable decision on this soon. MFIs should also get represented in the District Consultative Committee (DCC). The issue of multiple lending is an important one. If a person borrows from different agencies without regard to his capacity to repay, he fails to service the loans. This practice needs to be checked in the interest of the borrowers as well as the MFIs. In many cases MFIs face difficulty in getting the borrowing antecedents of the customers. This deficiency can be got over by having a state level Credit Bureau on the line of Credit Information Bureau at national level. State government could be the facilitator. I would look forward to initiative from the state government on this.
The Micro finance operations in the State were running smoothly. The Ordinance of Andhra Pradesh threw the entire micro finance sector into a crisis. Bankers and lenders stopped new lending and even regulated release of funds for earlier sanctioned loans to MFIs in the state. The state government of Odisha and the Banks operating in Odisha have to appreciate that the microfinance environment in Odisha is different; but the sector is being penalized by being starved of funds. Reserve Bank of India has initiated measures to resolve the liquidity problem of MFIs and advised the banks to ensure the adherence of the regulatory guidelines issued; but the lenders are still maintaining stoic silence. The state government should not be a mute onlooker. It must intervene and ensure resumption of credit to the worthwhile MFIs of the state. If it does not, then within six months most of the small MFIs will be closed.
In this background, the initiative of the Odisha Chapter of Sa-Dhan to have the Microfinance roundtable in Bhubaneswar on 22nd November is both commendable and timely. This occasion would provide a platform to facilitate an interaction among different stakeholders and, hopefully, lead to the survival of the microfinance sector. The extent of success of the event is dependent on the proactive role of the state government. The state government cannot be oblivious to the reality that microfinance, as a movement, has not only provided the communities with requisite financial services but also built the social capital through financial literacy, pension plan, remittance, insurance, understanding peer value, inculcating entrepreneurship, empowerment. MFIs are also serving the community with different intervention-capsules for helping the affected people to come out of economic distress during unprecedented situations like drought and flood.
MFIs would, I am sure, welcome the early passage of the Micro Finance Institutions (Development & Regulations) Bill, 2011. The draft legislation has a number of welcome features like protection of the customers through an Ombudsman; keeping the MFIs-- which are registered with RBI-- out of purview of the State Moneylenders’ Acts; making MFIs eligible to undertake whole range of financial services needed by the poor; making MFIs eligible to tap small savings. The draft legislation does not insist on higher capital requirement for MFIs nor does it enforce consolidation of the industry which may be in the long run anti competitive. The draft Bill also provides for bigger MFIs functioning as Trusts or Societies to convert into more transparent entities as Section 25 Companies or NBFC-MFIs. The draft Bill however stipulates financial product specifications, margins and interest rate caps. I would expect early passage of this long-needed legislation. I believe that a healthy MFI sector is a sure antidote to poor man’s suicide. I would urge the state government and the Banks also to believe this.
*****************

CHANGEOVER FROM ORISSA TO ODISHA COULD HAVE BEEN A GAME CHANGER

2011-11-12T09:10:00.002+05:30

For many of us, the changeover from Orissa to Odisha and from Oriya to Odia was nothing more than a belated step to set right a phonetical aberration. This development could have been a game changer. Unfortunately, it was not. Nor did it herald a new chapter in the lives of the people of the state. It was not like an important family event like the arrival of a bridegroom, riding a mare, to be greeted by fireworks. Our society seems to have viewed the change as a non-event; in the same manner it views many other happenings, including a sub-collector’s arrest for corruption. The quality of the response the news about the change of name evoked in the government only betrayed its penchant for theatrics. The rusticity of the celebration and the anachronism displayed through yet another public holiday should have been avoided and a caring government should have done something noble. It could have promulgated the citizens’ charter that very day and conveyed to the citizens that governance in Odisha would henceforth be citizen-centric. Citizens would then have with them an enforceable system that would have ensured delivery of certain essential government services within the stipulated time.
Let me come back to the issue of phonetical aberrations. People who know Odia have been suffering the discomfort and ignominy for over a decade when names of well known places of Odisha like Baripada are pronounced wrongly in public meetings. Changeover from Oriya to Odia, I am afraid, is not likely to change the situation. People of a state would always like to listen to their Chief Minister talking to them in their own language. If this natural urge is not met then people would have to wait for the second Chief Minister of Odisha to listen to Odia names being spoken correctly. As a young officer in early seventies, I had heard a sweet voice over microphone in Birsa Maidan of Rourkela on the occasion of the visit of the Prime Minister, Indira Gandhi. The speaker was speaking in Odia (then known as Oriya) so fluently, so sweetly and so spontaneously! It was sweet music to my ears. I must confess that I had stopped for a few minutes doing my Magistrate’s duty and listened to the words spoken by Nandini Satpathy. Those were so different from what we have been hearing now. Use of Odia in transactions of official business had for some years helped in demystifying governance and was instrumental in bringing government closer to the people. Now one hardly finds patrons for such a programme. There should be sincere efforts in this regard. If this does not happen, we have to wait for the second Chief Minister of Odisha to bring Odia to the centre-stage of governance.
Shortly after the changeover from Orissa to Odisha I noticed a whiff of fresh air that carried a message— "the worm will turn when trodden upon" meaning that the meekest among us will fight back when provoked. We have now a movement to arouse the collective conscience of the people of the state so that they make generous contribution to Sri Jagannath Temple and prevent sale of the immovable properties of the Lord. Some people are exercised that large chunk of valuable land of the Lord has been sold, wrongly, to a private entity at a very low price. They want that the amount received by the Temple through the sale of the land should be returned to the buyer and the land retrieved. People who have taken this initiative are confident that people of Odisha would come forward with voluntary donations so that the Temple could have sufficient resource to continue with the various rituals of the Lord. This initiative can be viewed as an effort to reinvent Odias. The society, the polity and the people need to be reactive to situations. We cannot be complacent to the extent that we lose the gains from societal dynamics. Sadly, a reaction-less situation has now engulfed the state which can have far reaching consequences. While Mr Narendra Modi justifiably speaks in China about transaction costs being low in Gujarat; here, in our state, high transaction costs even for participating in poverty alleviation programmes is a matter of concern. Bihar is now witnessing a welcome trend of fewer people migrating to other states in search of work. Such a development in Bihar has created a situation of scarcity of farm labour in some states like Haryana and Punjab. In Odisha migration arising out of economic distress, however, shows no sign of respite. Rather it is getting more pronounced, day by day. Mere change of name from Orissa to Odisha would not bring in improvement in this area. Governance would.
Recently, Government of Uttarakhand came out with an elaborate legislation on Lok Pal at the state level and the Chief Minister, Mr Khanduri, feels that the Lok Pal issue could be a very legitimate issue in the coming Elections. Many would agree. What has been the track record of Odisha in this regard? Report after Report of the Lok Pal is not being placed on the floor of the Legislature. Quality of implementation of various poverty-alleviation programmes in Odisha has facilitated the spread of Maoist activities in the state.
As I said, situation in Bihar has changed for the better. Mr Nitish Kumar has been the game changer. Mere change of name in Odisha would not be the game changer. People who matter have proved their inability to be game changer. A leopard, it is said, never changes its spots. In the peculiar situation we are in, the game changer would have to be the educated youth of our state. They have to make a beginning and bring in change in the present deplorable style of governance. I would hope that the youth would take up the issue of a strong Lok Pal for Odisha in the coming election to the Panchayats and spread the message how the Reports of Lok Pal have been kept under the carpet all these years. Such an initiative from the youth would be an extension of the initiative taken by the organisers of the apolitical Odia Swabhiman Yatra who have set on a Rath Yatra that would cover the entire state as a part of Sri Jagannath Surakshya Abhiyan.

*******************

PREVAILING MOOD OF NEGATIVISM IN INDIA LIKELY TO STAY FOR LONG

2011-11-04T23:28:00.000+05:30

While addressing the last meeting of the National Development Council, Prime Minister referred to the slowdown of the economy and expressed his concern; but emphasised that the nation must guard against the mood of negativism “that seems to have gripped the country". He wondered whether a growth of nine percent would be feasible in such a situation—a phenomenon reflecting the highly unstable conditions in the global economy, when growth target is being revised downwards in all the countries. He however indicated that the present situation should be seen as a short-term phenomenon. These words admit that the present going is not good and also hold out the hope of an early revival of the economy. Optimists may expect our economy to perform better in near future. I would also hope that we would do well; but I am unable to agree that the country would be able to get over the prevailing mood of negativism soon. Azim Premji, the Chairman of Wipro the other day, spoke about the complete absence of decision making in India which he perceived as the biggest concern for the country. He warned that growth was bound to be slow unless correctives were applied. A group of prominent persons including Deepak Parekh; Azmi Premji and Keshub Mahindra had written to national leaders expressing their concern over a series of scams leading to governance deficit but they felt that challenges like fighting corruption cannot be met by urban protests and posturing. Many, including me, may not agree with these illustrious persons. I would view urban protests a perfectly legitimate and appropriate response of the civil society to the insensitiveness of the government to the menace of corruption leading to a situation where the common man is always at the receiving end.
Does the common man foresee an early end to the mood of negativism? Our Prime minister has spoken about the compulsions of a coalition government on a number of occasions in the context of aberrations in governance. Such a strange defence of aberrations has only reinforced negativism. Quality of governance at the cutting edge level continues to be poor and betrays a posture inimical to the interest of the citizens. Instances of insensitivity; caprice and malice appear galore in public offices. This explains why the prevailing mood of negativism is not a romantic temporary mental disposition but one that is the unavoidable outcome of the treatment meted out to those very citizens for whose welfare various public offices and institutions have been created. I would like to narrate a few instances to show the existing malady that many offices are afflicted with in Odisha.
.The first case deals with Bharat Ranjan Mishra, who was an officer of the Orissa Finance Service (OFS). He rose up to the highest position the service could offer—the post of Special Secretary to the Government of Orissa. In this rank he was the Member, Finance in Bhubaneswar Development Authority (BDA). He retired from that position on the last day of January, 2011. At least four months prior to his retirement Bharat Ranjan submitted his pension papers and had expected that all his pensionary benefits would be made available to him immediately on retirement. This did not happen. Rather some officers retiring five, six months later got their dues where as Bharat Ranjan was deprived of this entitlement. Some of his papers relating to gratuity and provident fund were kept pending in the Finance Department. Finding no solution, he filed an application under RTI on 22/09/2011. That step resulted in the concerned papers being sent to the Accountant General on 29/09/2011. But no satisfactory reply as to why it took so long for the Department to forward all his pension related matters to Accountant General was forthcoming in response to the RTI application. Bharat Ranjan is presently contemplating to file an appeal with first Appellate Authority. This is a case showing harassment and discrimination, most likely due to personal acrimony. Bharat Ranjan should claim damage in the appropriate forum. That could result in fixation of responsibility on the persons who did wrong.
Another case relates to my experience. A few months ago, the man in charge of our small farm near Nandan Kanan informed me about disruption of electricity to the farm following a gale the previous night. The electric pole close to our farm had broken. I advised him to seek relief from the electric substation at Barang. He informed the concerned persons in the substation; but there was no satisfactoryresponse. After about a month, he sought my approval to spending Rs 300/- to transport a pole from the substation to our site. Though he and I realised that the electricity supplier should restore the electric connection at its cost, I had to agree to bear the cost of transport of the pole and our man brought the pole. After about a month he again complained that no one was listening to his frequent requests and in the meantime the electric wires had also been removed by miscreants. He sought my intervention. All these months our farm had had no electricity but strangely we continued to receive demand notes for consumption of electric energy. I was at my wit’s end. I contacted a senior official working in the energy sector and narrated my tale of woe. A few days thereafter, the pole was erected. Again after about a month, our man contacted me and sounded a bit annoyed with me. The crops in the farm would shortly need water. The pump would not work without electricity. I contacted my friend Mr BC Jena, Chairman, Central Elecricity Supply Utility of Orissa (CESU) and sought his intervention. Mr Jena was nice enough to get in touch with me in the evening the same day to say that the work had been done and the electric supply had been restored. I thanked him and wished him a long tenure in the energy sector. The next day our man reported, in a tone of sheer disbelief, that electric supply had been restored. At last we got rid of the agony of six months. This is a case of insensitivity and harassment. Without Mr Jena’s intervention I would be still suffering. But how many persons would be able to access Mr Jena to get relief? Why should not the junior engineer be sensitive to the requirement of the consumers? That such an approach is missing explains why the mood of negativism prevails..
The other case relates to a close friend, Biman Bihari Patnaik, who retired a few years ago from NALCO. We live in the same area of the city. He had been helping me all these years whenever I ran into difficulty—be it for locating a tax collector of the municipal corporation so that I would be able to pay my holding tax in time; or locating the right person in the Tehsil Office to expedite the change in the land records for which I had made the application in the prescribed form and complied with all other required formalities. Recently he sought my help. I was eager to help. He built the first floor of his house recently. He is planning to shift to the first floor and let out the ground floor. The new tenant would need a three phase electricity connection. My friend goes to the concerned office and makes enquiry about the procedure. Finding it cumbersome and taking into account his state of health, he prefers an agency that could execute a turn-key job for him. Someone in the office assured that a contractor who can do the job would meet him. The person turned up and made an assessment of the job to be done and bluntly told my friend that he had to pay speed money of ten thousand rupees to expedite the work. My friend felt humiliated. I contacted Mr. BC Jena again and tried to be educated if getting a three phase electricity connection was really a complex job. He explained to me it was not and assured that there should be no difficulty. I told him about the plight of my friend. Mr Jena also knows my friend. He was quick enough to respond to the task. I now foresee an early resolution to the problem without my friend being coerced to pay speed-money. This is a case which reveals caprice in public offices.
The system seems to have tilted surely in favour of the affluent, the influential and the bullying segments of the society which our leadership prefers not to admit. That is the reason why the mood of negativism prevails and is most likely to prevail notwithstanding the optimistic prognosis of our erudite Prime Minister that it is a temporary phenomenon.

***************************

CITIZENS SHOULD RECIPROCATE ANNA HAZARE’S EFFORTS BY SHOWING THAT VOTER IS THE KING.

2011-10-29T15:11:00.000+05:30

President Franklin D. Roosevelt of the United States of America had nominated his old friend Felix Frankfurter to fill up the vacancy in the Supreme Court caused due to the death of Justice BenjaminN Cardozo in July 1938. He was confirmed without dissent. The Senate confirmation hearing on the nomination of Frankfurter is notable for being the first of its kind when a nominee for the Supreme Court appeared in person before the Judiciary Committee .He served from January 30, 1939 to August 28, 1962 and wrote 247 opinions for the Court, 132 concurring opinions, and 251 dissents. Widely known for his erudition, he had said “No office in this land is more important than that of being a citizen.” Believers of democracy throughout the world would agree with Frankfurter. It is worthwhile looking at the experience of the citizenry in the area of electoral politics in India.
The first General Election of 1952 had the participation of over sixty one percent of India ‘s voters. It is indeed a matter of concern that despite our country having made rapid strides in various sectors of development over sixty years thereafter, sizeable section of Indian voters has consistently behaved like king only in one respect. They have chosen not to exercise their franchise. The disconnect between citizens and elections has been too pronounced to be ignored. Voting percentage hovered between 55 and 63 percent till the thirteenth General Election in 1999. However in 2004 it plummeted to around 49 percent. In the last 60 years there has been significant involvement of the underprivileged in politics.Unfortunately the middle class that had contributed so much in the struggle for India’s independence, has become lukewarm to electoral politics.
Elections in India involve political mobilisation and organisational complexity on an amazing scale. In the 1996 election to Lok Sabha there were 1,269 candidates from 38 officially recognised national and state parties, 1,048 candidates from registered parties, not recognised and 10,635 independent candidates. Around 592.57 million people voted. The Election Commission employed almost four million people to run the election. A vast number if civilian police and security forces were deployed to ensure that the elections were carried out peacefully. Recourse to technology has been taken to bring in efficiency and economy in conducting our elections. Use of electronic voting machines has done away with the mass amounts of paper that were used earlier. Voter identity cards have made a dent on illegal voting. Number of polling booths has been increased to ensure convenience to voters even in inaccessible areas. While all these steps are in the right direction, we have been very slow in bringing about electoral reforms which are so vital to strengthen our political system
Political parties should have paid more attention to their traditional role of mobilizing public opinion and acting as a medium between people and government. There is an increasing perception that they are in the business of winning elections.This is the reason why selection of candidates is largely made on the ability to win. Candidates who are able to spend more money seem to have higher chance of win. This is also proved by the data from several elections. For example, in the 2009 Lok Sabha election, 33% of the candidates who declared assets of Rs 5 crore and above were elected, whereas less than 1% of candidates with declared assets of less than Rs10 lakh were elected.
Let us look at some of the reform measures contemplated. Curbing criminalisation of politics has been suggested through enforcement of disclosure of criminal antecedents of candidates and eligibility restriction for candidates with criminal cases pending against them. This has been opposed by every political party mainly on two premises, first that generally most of the criminal cases lodged are "false" and secondly, according to law of the land, everybody is presumed innocent until proved guilty. If such rigidity in approach persists, there is little hope that reforms in this vital sector will ever be possible.
There should be a ceiling on the expenditure that a candidate can incur during the election. This ceiling should be fixed, and revised periodically, by the Election Commission of India, without the need of any reference or recommendation to the government .There should be a ceiling on expenses that can be incurred by political parties during the election period. The elected representative should enjoy the highest level of representative-ness . For ensuring this, there is a proposal to ensure that EVMs should have an option or a button for “None-of-the-above”. This would mean that votes cast for the “None-of-the-above” option should also be counted. In case the “None-of-the-above” option gets more votes, none of the candidates should be declared elected and a fresh election should held in which all the candidates in this election are not allowed to contest. In the following elections, with fresh candidates and with a “None-of-the-above” option, only that candidate should be declared elected who gets at least 50%+1 of the votes cast. If even in this round, the “None-of-the-above” option gets the highest number of votes cast or none of the candidate gets at least 50%+1 of the votes cast, then the process should be repeated. This may appear to be a cumbersome and tedious process but it will orient the entire system in the direction of (a) better representative-ness among the elected representatives by reducing the sectarian effects of vote banks, and (b) encouraging political parties to put up better candidates.
The Election Commission has recently sought help of the Institute of Chartered Accountants of India (ICAI) to draw up guidelines concerning the formats, frequency, scrutiny, etc. of the accounts to be maintained by political parties. These guidelines should be made mandatory, and any failure to comply with these should lead to automatic de-registration of the party. A person should not be allowed to contest from more than one constituency at a time.
Inner-party democracy within the political parties should be made compulsory by law. This law should provide for mandatory secret ballot for elections for all inner party posts and selection of candidates by the registered members. Such voting should be overseen by Election Commission of India. There should be limit prescribed for the amount of donation that a political party can accept from an individual, company, organization, or any entity. Political parties should be made legally obliged to maintain proper accounts in predetermined account heads. Accounts of political parties should be audited by auditors recommended and approved by the Comptroller and Auditor General of India and should be available for the information of the public. A comprehensive law should be enacted to regulate the functioning of political parties. There should be a provision for recall of the elected representative due to reasons like non-performance, corruption, lack of development in their respective area, inaccessibility to people. MP, MLA and Corporator local area development fund should be scrapped and the same amount of money should be utilized according to the wishes of local people with proper social and local auditing system.
The progress of electoral reforms has been slow. Elections are becoming increasingly expensive; we have not been able to prevent people with criminal records from contesting elections. It is time the citizens came out with a voluntary code of conduct to bring some order in the prevailing situation. Voters should not vote for a candidate who is seeking election to a position which he has held at least twice earlier. Instead, the voter should cast his vote in favour of a newcomer. Voters should not vote for a candidate who has been an accused in a criminal case. Voters should not prefer a candidate whose party has had no election through secret ballot. Parties who have come out with audited accounts should be preferred by the voters. Voters should not prefer a candidate who is above sixty five years in age. Candidates who have demonstrated their ability in the past in any position should be preferred. Candidate showing wealth or muscle power should not be preferred. Such a voluntary code of conduct by the electorate would hasten the process of electoral reforms. If the electorate all over the country comes up announcing their preferences on these lines, it would certainly be a befitting response to the noble initiative of Anna Hazare. Then only would the voter be really the king.

*******************************

BHAGAVAD GITA SHOULD GUIDE OUR CIVIL SERVANTS

2011-10-22T08:23:00.000+05:30

Twelve years ago, a few friends joined me to start a modest programme to have an annual workshop for school children on the Bhagavad Gita. Since then the programme is on, without interruption, under the auspices of a registered Trust, Swadhyaya Paribar . The annual event brings together hundreds of bright young boys and girls, a few of whom are physically challenged, who display their proficiency in reciting and explaining the verses of the Bhagvad Gita. I am convinced that this modest effort has brought the participating children; their siblings; parents, teachers and neighbours closer to the Bhagavad Gita and its perennial message. I am also positive that these children while growing to their youth and, subsequently, old age, would continue to be guided by the teachings of the Gita and would leave a rich legacy for their progeny. I would welcome if our efforts could be replicated in different parts of the state and the collective efforts could snowball into a movement for righteous living.

While most Indian readers hold the Bhagavad Gita as a religious work containing the words of Lord Krishna, innumerable admirers have seen in the unique verses great words of wisdom which have eloquently declared that a person can attain great heights of perfection through righteous efforts. For them the Bhagavad Gita contains prescriptions and solutions which are secular and which any person can practise, irrespective of religious beliefs.

Many persons throughout the world have seen in the Bhagavad Gita profound management concepts. Management Schools have been teaching the students the prescriptions enshrined in the Gita which have bearing on sound management practices. I would plead for bringing our public servants, elected representatives of the Panchayati Raj Institutions (PRIs) and legislators to a meeting platform where they could also benefit from these concepts. I am sure such an effort would bring in a good deal of difference. We may briefly discuss a few of the principles which have a bearing on management and governance.

Just before the Mahabharata war, Duryodhana sought for Sri Krishna's large army while Arjuna opted for Sri Krishna for support. Duryodhana also speaks in the first chapter (1.10) to Dronacharya about the unlimited army of theirs positioned on the battle-field under the command of Bhisma as against the modest army of the Pandavas under the command of Bhima. This provides some idea about effective management. In some cases, a manager chooses numbers but fails while some one choosing wisdom wins .

We learn that whenever there is deterioration of Dharma, God manifests to protect good people, destroy the evil ones and restore Dharma in the society. One notices in these verses a profound management concept. When any system attains disequilibrium and instability it needs to be regenerated so that it does not go out of control. Engineers speak about regenerative points in a system in the absence of which a system becomes dysfunctional. One can relate this to areas of economics and management as well. The Governor of Reserve Bank of India enhancing the interest rate can be viewed as application of the regenerative process in the economy.
Very often we notice that many people do not enjoy the work they are doing. We notice the ‘boredom’ syndrome even with children and there is a craze for “unwinding” on weekends. This tendency arises because we fail to have the right attitude to work. Very often, work appears to be a drudgery. The basic tenet of the Bhagvad Gita is antithesis to this idea. We learn from the Gita that there is nothing like state of no work. “NAHI KASHCHIT KSHYANAM API JATU TISTHATI AKARMAKRUT”—verily none even can ever remain for even a moment without performing action. Everyone helplessly works according to the qualities born of Nature(3.5). This is the state of affairs in any organisation as well. We find persons of Satvik ; Rajashik and Tamashik temperament in every organisation. In such a situation the ideal course would be to keep in view the teaching of the Gita that our right is to work only, but never with its fruits. The Lord commands that the fruits of action should not be our motive (rajashik), nor can we let our attachment be to inaction (tamasik)2.47. When a man completely casts off all the desires of mind and is satisfied in the Self by the Self then is he said to be of steady wisdom. STITAPRAGYAN TADA UCHYATE 2.55. We learn that there has to be the right orientation for the work we do. We need to engage in the chosen or assigned work with total commitment and derive supreme bliss of the Self. In such a situation there will be no craving for benefits from our work which are sensual in nature. A perfect manager or a public servant should aspire for a state where the mind is not shaken by adversity, he does not hanker after pleasures, is free from attachment, fear and anger. A person of such disposition is viewed as one with steady wisdom --STHITADHIH MUNIH UCHYATE, 2.56. Such a leader or a manager does not rejoice in pleasure nor is he averse to pain that may befall him or the organisation he is in charge of. He should not praise anybody when the latter does any good to him nor should he censure anyone when one does him any harm. His efforts should be to attain evenness of mind in order to be able to cast off in his life both good and evil deed and acquire skill in action. YOGAH KARMASU KAUSHALAM 2.50. Work performed with motive towards fruits only can bind a man. It will bring the fruits and the performer of the action will have to take a path of indulgence to enjoy them. If work is done with evenness of mind, with the mind resting in the Lord, work will not bind us. Most of us have come across situations when we have remained engrossed in intense activity our work has generated and yet at the end of the day we have a sense of fulfilment. This feeling is so enriching that any monetary or sensual incentive are no match in compensation. This orientation towards work as we find in the Bhagavad Gita should continue to draw attention of all our public servants. They need to draw inspiration from the verse 5.10 which says that our action should be offered to Brahman and should be done by abandoning attachment. By doing so we are not tainted, just as a lotus-leaf is not tainted by water.
Management of stress has emerged as a big issue today. Even experts would accept stress as unavoidable and would prescribe how to minimise its adverse effects. There is little guidance on how we can engage in vigorous activity and yet prevent stress. Most of the knowledge and help we get from the modern day thinking is to suppress or divert our attention from the issue of stress. We do not seem to address why one should get stressed in the first place. The Bhagavad Gita as a unique treatise on activity (KARMA) provides the insight to how tranquillity of mind and intensive activity can go on in harmony. The Gita makes us understand that understanding problems in the right perspective is crucial to managing them. The idea of managing the world of duality—SAMATWAM YOGA UCHYATE has been one of the key messages in the Gita.
Lord Krishna explains about the immortality of the soul and the impermanent physical body that bears it. Just as a person discards an old and a torn shirt and wears a new one, He says, the soul also discards an old body and acquires a new one. This verse can be viewed in a different perspective. An organisation needs to discard old ideas and mindset, adopt new ones and grow healthy. Management is about organising people and making them focussed to achieve the management objective. To achieve this, the manager has to be effective. He achieves excellence through managing himself. If the leader wavers and is overwhelmed by sensual objects, the organisation gets derailed and the manager no more has a committed workforce but a motley crowd.

We find in the Bhagavad Gita the way how a person can cease to be unsteady ( AJUKTA); vulgar(PRAKRUTAH); unbending (STABDAH) or procrastinating(DIRGHASUTRI) and how he can be free from attachment (MUKTASANGA); non-egoistic(ANAHAMBADI) and would remain unaffected by success or failure. I would cherish our public servants to be MUKTASANGA AND ANAHAMBADI; they should follow the golden principle that SAMATWAM YOGA UCHYATE, so that we can make a dent on the growing governance deficit.
*****************

CAN WE AFFORD A RUNAWAY GOVERNANCE DEFICIT?

2011-10-15T14:16:00.003+05:30

Greater a man, the more is he accessible. I hold this view. I have learnt it from experience. Years ago, in early seventies, while I was serving as Additional District Magistrate at Rourkela, both I and my wife had paid a visit to the Missionaries of Charity in Kolkata. I recollect the warmth of reception we received from none else than the legendary Mother Teresa who spent almost two hours of her valuable time showing and explaining to us various activities in the campus and talking to us with great interest as if she knew us for years. There was no barrier of officialdom; no showing off; no inner chamber which was out of bounds for ordinary mortals like me. “Atithi Devo Bhava”, the great Indian tradition which treats the guest as God, was the pervading atmosphere where the noble Mother was the presiding officer. Another experience comes to my mind. About a month before I was to retire from the IAS, I requested the Secretary to the President if I could have the privilege of a courtesy call on the President. He was nice to remember and about a fortnight later, I was informed that a meeting with Rastrapatiji had been fixed. I called on the President, Dr APJ Abdul Kalam, in his office and had exclusive time for an hour with the great Indian. The simplicity and the versatility of the person and his eagerness to listen to you left an indelible mark in the memory. A leader has a natural urge to reach out to the people. If he is genuine, he not only makes himself available to hear the people and talk to them; he does his best to meet their aspirations. He redresses their grievance too. I remember a case when a group of people called on the then Chief Minister, Biju Patnaik, and conveyed their anxiety over the proposed location of an establishment of a para-military organisation just at the entrance to their village ( not far from Bhubaneswar) which would cause a lot of inconvenience to the villagers, particularly, the ladies. Chief Minister immediately asked the concerned officer to visit the spot and furnish a factual report. The report in hand, Chief Minister was convinced of the genuineness of the grievance and a decision to shift the location of the establishment was taken soon thereafter. But what happens if a Chief Minister, for years, prefers not to meet any one in his grievance cell? One finds government functionaries becoming increasingly inaccessible or-- to be fair-- selectively accessible. There is a widely held perception that a person getting elected or selected into an office, soon chooses his priorities. These are mostly pursuits meant to benefit him in the short and long run. He looks for the advantages which the office is capable of offering. With such an attitude, the person opts for inaccessibility. I would view this malady as a major contributor to governance deficit. There are of course exceptions. Even today one can have pleasant response from some offices at times. The other day, a person who earns his livelihood by selling milk and who lives with his animals on a big piece of government land just close to our house in Bhubaneswar, came to me to request that I talk to the municipal authority to arrange for the removal of the carcass of a bull in his compound. The poor man was in distress as the stink was getting unbearable. I rang up the concerned office. Luckily some one answered; but he could not offer any help. But his tone was helpful. I was surprised. Encouraged, I requested him to let me have the cell number of the Health Officer. Surprisingly, he did not choose to withhold the phone number. I was exceptionally lucky. I rang up the Health Officer. I had no previous acquaintance with him. I was lucky again. The officer was quite responsive and helpful. He promised that the carcass would be removed soon. How I wish everyone in government was equally responsive and helpful.
Two other aberrations have also contributed to deficit in governance-- the diminishing majesty of rule of law and increasing recourse to discretion as a major tool of governance. The systemic failure the country witnessed in the sordid saga of 2G scam stands out as a glaring example where government allowed free play to caprice, whims, venality and conspiracy showing scant regard to basic tenets of governance. Mining scam in Orissa again is an example of governance deficit when everyone looked the other way to the mafia-politician nexus and allowed day-light robbery of our natural resources.
Political managers and strategists seem to have realised that a wealthy person is better equipped to represent poor people; a manipulator would be a winning candidate; a person with criminal records would be fearless and win election; progenies of political families have a divine right to rule; without objective evaluation of their performance some people should be fielded candidates for six, seven and eight times simply because of their clout. These factors have converted our democratic polity into an oligarchy. That such transformation has been brought about and appears to be deeply entrenched in a country where there is no dearth of talent is an unfortunate development. Here is a distorted democracy we seem to have been sucked into. The oligarchy at the political sphere in turn has promoted oligarchy in bureaucracy as well. A system which makes entry of the most deserving ones into the political sphere impossible is enhancing deficit in governance.
With growth of a culture that veers round ensuring safety and pampering of a coterie, the steady erosion of the majesty of government is overlooked. Government is supposed to be the repository of power and authority. However, we have been witnessing instances where the state is being humbled time and again – be it when the police armoury gets looted by armed extremists at Nayagarh or when innocent citizens fall victims to explosives planted by terrorists in Delhi. The phenomenon of the state being humbled also gets manifested in the sustained indifference of the government that does not do anything beyond soft pedalling of the issue of black money stashed abroad. One is yet to see in India even a small fraction of the state’s will that was demonstrated by the USA in liquidating Osama Bin Laden in the heart of Pakistan. Stable governance presupposes the indomitability of the state. Deficit in governance has reached such depth that state’s authority continues being challenged very often. This has a debilitating effect on quality of governance. Pride in being part of governance wanes and there is little capacity or enthusiasm to achieve anything worthwhile. One gets confirmation of this psyche by seeing the pace and quality of work on important projects. The fly-over in the heart of Bhubaneswar remains incomplete even after years. The important Cuttack-Paradip Highway remains under construction for years. The hapless population in interior pockets of tribal sub plan area of Orissa with inadequate government protection simply wait for cholera to strike them again to take a heavy toll of human lives.
Growing disconnect between citizens and people in charge of governance is the outcome of the non synchronisation of expectations. The road in front of my house is in utter state of disrepair. I and my neighbours would expect the road to be repaired soon and the work is done well. The municipal authorities could have other priority and may not attend to our road for years. Even if the municipality would agree to take up early repairs, the concerned engineer and the chosen contractor may have their own priority.
It is time all stakeholders realised that the prevailing situation can no longer be described as temporary aberration. We need to comprehend the seriousness of the malady and admit that the deficit has become unsustainable and has been eroding the credibility of the state. An erudite Oriya writer had conveyed a terse message in a subtle way which is relevant to this discussion. In one of his stories, two characters were discussing the present state of decadence in the society. One of the two was wondering if really the words of the Lord in the Bhagabad Gita “Paritranaya sadhunam; binashaya cha duskrutam; dharma sansthapanasthaya samvavami yugey yugey” would ever be realised. The other promptly replied that the society had already reached that state and God has arrived. “Where is He?” asks the other, in disbelief. “In our forests; in the garb of armed men and women”, replies the other. The story is certainly a wake-up call.
**************************

COAL SHORTAGE POISED TO HIT ECONOMY HARD

2011-10-08T09:07:00.001+05:30

In an impressive ground breaking ceremony on September 29, 2011 at Bhubaneswari Coal Mine near Talcher, Mahanadi Coal Fields Ltd (MCL) commenced the development of a huge coal deposit through the Essel Mining & Industries Ltd (ESSEL). The mining company of the Aditya Birla Group would produce twenty million tons of coal every year from the mine that would make Bhubaneswari the third largest coal mine in India and the largest in Orissa. This development is a noteworthy one; particularly in the context of the present difficult phase of coal shortage the country is passing through. More such projects in coal sector all over the country, in quick succession, seem to be the need of the hour. India's power sector appears to be heading for a serious crisis as many new plants would have no fuel to burn, lenders are reluctant to fund new projects, and state distribution utilities are in a financial mess to such an extent that while some power generating companies have power; consumers face long blackouts as the distribution companies have no money to buy power.
Ministry of Coal projected coal demand at around 700 million tons (mt) in 2011-12 (terminal year of Eleventh Plan). Availability, however, is only around 560 mt leading to a shortage of around 140 mt. Shortage of domestic coal has made the country increasingly dependent of foreign supplies. Import of non-coking coal is on the rise. From the level of 25 million tons in 2006-07, import has gone up to 48.6 million tons in 2009-10. We imported around 25 million tons of coking coal in 2009-10 and the total quantity of imported coal in the year was 73 million tons. Importers are wary about the recent hike in coal price in Indonesia—the country that exports good quantity of non-coking coal to India. In this situation of shortage, Coal India won't promise fuel unless a new power project has made substantial progress on the ground. Till recently, lenders were happy to part with funds provided companies arranged for fuel supply within a year of first disbursement. Now some financiers would like to ask companies to have fuel agreements in place before disbursing loans. Power producers, financers and analysts feel that the country is undergoing the worst crisis in the sector since 2003, when a path-breaking Electricity Act was expected to herald rapid growth in generation, transmission and distribution of power to fuel the rapidly expanding economy. An environment was emerging for a larger space for the private players. But companies that can build this additional capacity now seem to apprehend that many new projects may collapse as they cannot se ll electricity at remunerative rates even if they get fuel to fire their plants. Lack of distribution reforms and low power tariffs may force investors to stay away from the sector. The problem has worsened as cash-strapped state distribution utilities are not buying power and resorting to load shedding. In the present analysis I am confining the discussion to availability of coal.
The issue of improving availability of domestic coal has assumed great importance. Let us see if adequacy of coal resource in the country is a relevant issue. As per the latest assessment of Geological Survey of India, a total of 285862 million tons of geological resources of coal have been so far estimated in India up to a maximum depth of 1200 metre. Jharkhand has the largest resource—78936 mt—followed by Orissa at 69159 mt. The proved reserve of the country is 114002 mt and at the current level of production, the proved reserves are expected to last for over 100 years. Availability of resource is therefore comfortable. Has there has been any flaw in the policy frame-work? This needs a careful look. Under the Coal Mines (Nationalisation) Act, 1973, coal mining was mostly reserved for the public sector. By an amendment to the Act in 1976, two exceptions to the policy were introduced viz.(i) captive mining by private companies engaged in production of iron and steel and (ii)sub-lease for coal mining to private parties in isolated small pockets not amenable to economic development and not requiring rail transport. Considering the need to augment thermal power generation and to create additional thermal power capacity during the VIII Plan period, the Government decided to allow private participation in the power sector. The Coal Mines (Nationalisation) Act, 1973 was, accordingly, amended with effect from 9th June, 1993 to allow coal mining for captive consumption for generation of power, washing of coal obtained from a mine and other end uses to be notified by Government from time to time. This was in addition to the existing provision for captive coal mining for production of iron and steel. The amendment was carried out in Section 3(3)(a)(iii) of the Act by a Gazette Notification dated 9.6.93. Under the powers conferred on the Central Government by Section 3 (3) (a) (iii)(4) of the Act, another Gazette Notification has been issued on 15.3.96 to allow production of cement as an end use for captive mining of coal. The June, 1993 amendment to the Act as well as the Gazette Notification of 15.3.96 apply to both the public sector and private sector companies desiring to mine coal for captive consumption. The Central Government, a Government company (including a State Government company), a Corporation owned, managed and controlled by the Central Government are eligible to do coal mining in India without the restriction of captive consumption .A person can have a sub-lease to a coal asset, subject to the conditions that the coal reserves covered by the sub-lease are in isolated small pockets or are not sufficient for scientific and economic development in a coordinated manner and that the coal produced by the sub-lessee will not be required to be transported by rail. Any of the companies engaged in any of the approved end-uses indicated above can itself mine coal from a captive coal block. Some of the companies who were offered captive coal blocks expressed their difficulties to do coal mining on the ground of lack of experience in coal mining. Keeping in view the difficulties experienced by such companies, Government have allowed the following dispensations:-
(a) A company engaged in any of the approved end-use can mine coal from a captive block through an associated coal company formed with the sole objective of mining coal and supplying the coal on exclusive basis from the captive coal block to the end-user company, provided the end-user company has at least 26% equity ownership in the associated coal company at all times.
(b) There can be a holding company with two subsidiaries i.e. (i) a company engaged in any of the approved end-uses and (ii) an associated coal company formed with the sole objective of mining coal and supplying the coal on exclusive basis from the captive coal block to the end-user company, provided the holding company has at least 26% equity ownership in both the end-user company and the associated coal company.
(c) An independent coal/lignite mining company can also be allowed a captive block on condition that the entire coal/lignite so mined would be transferred to an end user company/companies for their captive consumption in the specified end uses if the mining company has firm back-to-back tie up with specified end user company supported by legally binding and enforceable supply contract/agreement.
Under the provisions of Section 5 (2) of the Coal Mines (Nationalisation) Act, 1973, the Coal India Limited enjoys the status of becoming the deemed lessee of the concerned State Governments in relation to all the nationalised coal mines. Under the provisions of Section 11 (2) of the Coal Bearing Areas (Acquisition & Development) Act, 1957 also, the Coal India Limited acquires the same status of becoming deemed lessee of the concerned State Governments in relation to the lands over the coal bearing areas acquired under this Act. The deemed leases being in the nature of statutory leases, the Coal India Limited does not have to obtain separate leases under the MMRD Act, 1957 from the concerned State Government in respect of the nationalised mines and the coal bearing lands acquired under the CBA Act. However, in case any of the companies eligible to do coal mining in the country including CIL and the other Government and private coal companies want to acquire coal bearing lands under the Land Acquisition Act, 1894, they will be required to obtain coal mining leases from the concerned State Governments under the MMRD Act, 1957. Coal being a mineral listed in the First Schedule of the MMRD Act, 1957, the State Governments can grant coal mining leases only with the previous approval of the Central Government accorded under the proviso to Section 5 (1) of MMRD Act.
Before the previous approval of the Central Government is accorded, the coal mining company is required to get the mining plan for the proposed coal mining area approved from the Central Government. The coal mining leases under the MMRD Act are now granted for 20-30 years initially and can be renewed for a further period of 20 years with the previous approval of the Central Government. The coal mining leases under the MMRD Act, 1957 are ordinarily subject to a ceiling of 10 sq. kms. area.
Given the increasing demand for coal blocks, a more objective system for allotting coal blocks needed to be put in place. As the existing law did not permit auction of coal blocks, efforts were initiated in early 2005 to make necessary amendments to the law. One of the major reasons for the delay in finalization of a draft bill in this regard was the objection of the trade unions and Governments of coal bearing States. Eventually, it was agreed that the entire proceeds from the auction would accrue to the relevant State Governments and the draft bill was moved in Parliament in 2008. No fresh coal blocks have been offered for allocation under the existing system since the introduction of the draft bill as the intent of the Government was to get the amendment to the law passed speedily and allot coal blocks through the auction route. Amendments could be passed only in 2010. Necessary mechanisms are being put in place in order to operationalise the new procedure.
The policy framework seems congenial for wholesome development of the coal assets; particularly, the open cast mines though there is need for innovative policy for quicker and more scientific exploitation of our underground coal mines. There is however delay in commencing production in a very large number of coal blocks. This calls for more stringent monitoring at the macro level. It is a matter of concern that even Coal India’s production remained at the level of 2009-10 in the subsequent year.
216 coal blocks have been allocated so far to eligible public and private companies. Out of these, 24 coal blocks have been de allocated. 2 of these de allocated blocks have been reallocated to eligible companies. Net allocated blocks are 194 out of which only 28 have come into production. Rest are in various stages of development. Development of a coal mine takes 3 to 7 years for reaching optimal production capacity. As per guidelines, coal production from open cast captive block needs to commence within 36 months (42 months in case it is in forest) and in case of underground mines the period is 54 months in forest land and 48 months elsewhere. In case the block is not explored, two years are allowed extra for detailed exploration.
So far, 17 coal blocks have been allocated in Orissa to different parties for setting up power projects. Only one of these blocks, allotted to Hindalco Industries Ltd, has commenced production. The block allotted to NALCO in 2004 is yet to commence production. Forest clearance and Land Acquisition are yet to be completed. Four blocks have been allocated in Orissa under tariff based competitive bidding for power. Selection of developer has not been done. Eight blocks in Orissa have been allocated to different parties for steel sector. None has commenced production though one was allocated in 1999 and two in 2003. Two blocks in Orissa were allocated for commercial mining; one to Orissa Mining Corporation in 2003 and the other to Orissa Mining Corporation along with AP Mining Corporation. Neither has commenced production. Two Orissa coal blocks have been allocated (first in the country) for Coal to Liquid (CTL) sector in 2009. This analysis reveals that out of a total of 33 coal blocks allocated in Orissa so far for various end uses, only one has commenced production. The matter needs greater monitoring of the state government since the advantage of higher coal production would benefit the state’s economy. Mahanadi Coal Fields Ltd is presently the most profitable subsidiary of Coal India and is poised to emerge as the largest producing subsidiary of Coal India Ltd. MCL faces problems like accumulation of coal at pitheads and rehabilitation and resettlement related issues. A wholesome development of MCL and quicker development of the various coal blocks allocated so far would trigger a lot of economic activities in Talcher and Ib Valley regions of the state. It would also lead to development of railway infrastructure in the state. The CTL projects, however, need closer appraisal to come to a conscious decision if the projects would be worthwhile in the ecologically fragile environment of Talcher region.
************************.

ORISSA AGRICULTURE POLICY SHOULD ENSURE GREATER APPLICATION OF SKILL AND HIGHER INCOME FOR LABOUR.

2011-10-01T09:26:00.001+05:30

It is desirable to transform agriculture into an enterprise. To let this happen, we should facilitate capital investment in critical areas. However, while doing so, we need to take note of the skewed land holding pattern in Orissa where 20% families own 80% of the land. Can we in effect ensure successful transition from traditional agriculture to entrepreneurial farming by bestowing state largess only on the affluent segment of our farming community? This is what Orissa’s present policy seems to be prescribing. This approach overlooks the basic fact that expenditure in any farming enterprise comprises—apart from the cost of land—capital and recurring expenditure and cost of human labour. It seems our policy makers do not foresee any problem on labour front to make our agriculture run like a successful enterprise; presumably on the assumption that the large pool of poor small and marginal farmers as well as landless labour would be contributing overwhelmingly and enthusiastically to the process of transition of our agriculture sector. We need, however, to appreciate that the labour force, being members of the same society in which the potential entrepreneurs live, are also equally keen for a handsome share in the commercialisation drive. Unfortunately, being resource poor, they neither have enough land nor money to contribute their share of investment. As a result, most of the small and marginal farmers and agricultural labourers will be unable to participate in the planned transition. This appears to be a serious drawback in the present approach and calls for a solution.

We must appreciate the indispensable role of human labour as an important input along with machines in agricultural operations. Here institutional ownership of machines does not prove an effective solution. At the same time, individual entrepreneurs may prove too self-oriented to be trusted to extend fair benefit to landless labour or small and marginal farmers who would like to participate in the process of commercialisation. Therefore, we shall have to equip labour with bullocks; bullock drawn improved implements and appropriate hand tools. So equipped, these people may form small labour groups for taking up operational contracts from different entrepreneurs. When demand for their skilled work increases, they could be encouraged to own small machines like power plough, power weeders and power threshers cum winnower to improve productivity with proportionate increase in daily earnings. If any enterprise is big enough, they may hire several groups. We need to promote such organised and skilled labour groups so that the genuine expectations and interests of the labour-- fair wage, insurance benefits etc-- are safeguarded. Then only will the idea of commercialisation succeed. Wadakkancherry Panchayat in Thrissur District of Kerala came up with an innovative way to deal with shortage of agriculture labour in Kerala. The Panchayat created a skilled labour Bank, called the Green Army, comprising persons adept in agricultural techniques and in the use of agricultural machinery. This went a long way in easing the labour shortage. As a result, the area under cultivation in the Block increased. They are now trying to increase the strength of the Green Army and ensure that the members get work for 200 days every year. There is also a plan to provide them with insurance cover and pension. This is definitely an innovative plan that could be adopted elsewhere as well. In Orissa we could work towards such arrangement and government could make provision of subsidy up to 90% on various items so that the labour can be well equipped. Loan without any collateral may be made available to such groups with Government guarantee. Unless this kind of intervention is made, scarcity of motivated and skilled agricultural labour would persist, which will compel the entrepreneurs to give up commercial agriculture. As a result, most of the medium and large holdings will be left fallow. We should earnestly try to organise the needy small and marginal farmers and landless labourers, viewing them as equally important partners (as human capital) for meaningful participation in any enterprise. This will enable a landlord to carry out on-farm operations on contract, while he may concentrate on the off-farm activities (processing/marketing & management etc).

Such a policy will ensure greater employment opportunities for the small &marginal farmers as well as landless labourers while enabling entrepreneurs to spend time on the commercial aspects, leading to ultimate success of the enterprise. Agricultural wage rates are usually low because individually labourers lack bargaining power. In order that they are able to bargain with the entrepreneurs for a fair wage, they need to be initially empowered by equipping them with a pair of bullocks, necessary improved implements and hand tools. Later they may think of acquiring small power tools like a power plough and a small electrically operated power thresher cum winnower as well. The farm mechanization program should ensure easy and adequate availability of equipment catering to the needs of these groups.

With such an approach we can trigger commercialisation in large and medium holdings and make a large number of landless labourers and small and marginal farmers partners in prosperity as well. But, we should also make the right intervention for small and marginal holdings and their modest owners so that the intended transformation process does not remain confined to only the affluent segment of our farmer community. For this a few programmes, discussed below, may have to be taken up.

Even if we are able to diversify crops in uplands, rice will continue to be cultivated in medium and lowland. These lands will need up gradation. Irrigation facilities created so far in the state has been modest. Design of our irrigation projects has been such that the projects utilise only 12% of rainfall received in their catchments. Bulk of the rain water is wasted as run off. When the coverage of irrigated land in the state is small, investment on other inputs like high yielding seeds, fertilizers, soil amendments and machinery is very likely to lead to sub-optimum utilisation. Investment on pumps and tube wells may ultimately prove futile without water, retention of which after runoff and evaporation losses is mere 10% in the rain fed areas. Pumps are lifting devices, they cannot create water. We have to make meaningful amends and ensure much higher absorption of rain water at the place it falls. If we succeed, agriculture will provide greater job opportunities to the small farmers and landless labourers and would lead to higher productivity.

While we may plan to raise the production of certified paddy seeds we need to pay attention as well to preserve the germ-plasm of around 200 varieties of local paddy seeds by encouraging their continued use. Besides low production cost, the local seeds have a reasonably long dormancy period, which becomes a useful feature in case of late rain; preventing sprouting of seeds in the field or threshing yard. Farmers should be encouraged to take up organic farming which, being less costly, is beneficial for the small and marginal farmers. Organic farming would lead to extensive use of home-made organic compost. Bio pesticide prepared with cattle urine, neem and karanja seeds should be promoted to cut down cost of farming.

We should give much greater thrust on SRI (System of Rice Intensification) method of cultivation for rice and other field crops. It, combined with organic farming, could be a key factor in boosting production . This method can combat drought in rain fed areas. This is because placing seeds/seedlings wide apart (250mm X 250mm) with no standing water promotes profuse root development enabling the plants to collect moisture from deeper levels. Since scarcity of water is becoming an important concern, a more vigorous drive on SRI method than what is currently being planned appears to be the need of the hour.

Integrated farming--- maintaining dairy, poultry, fishery, bee colonies etc along with growing crop--- is becoming rarer by the day because these are labour intensive activities and need close supervision. Large farmers are slowly moving away from this activity. Through suitable partnership between large and small farmers we can revive such activities,

An agriculture policy that is tilted in favour of larger land holdings-- our state policy looks that way--- cannot be an appropriate vehicle to ensure the intended transformation in the agriculture sector. Millions of our people revolve round agriculture and we have to take them along to transform the sector. The need of the time is to equip them well; to make them acquire necessary tools with state support and improve their productivity so that their participation adds value to our agriculture.

************************

SHOULD FERTILE LAND BE GIVEN TO INDUSTRY AT THE COST OF FARMERS?

2011-09-25T05:54:00.000+05:30

We may recall the days when Singur and Nandigram sneezed and soon thereafter, the entire country caught cold. Mamata Banerjee won widespread acclaim by assigning the landowners their rightful place in the scheme of things. Overnight the landowners realised that their net-worth was much higher than what the law book on land acquisition prescribed. After this, at many places in the country, farmers and landowners appeared in a new posture which was viewed by many as "confrontation", giving rise to tension. Nandigram and Singur underlined three very relevant issues. Voluntary consent to the acquisition; undesirability of using fertile and irrigated land for industry; and inadequacy of land acquisition Act which quantifies the loss of the land only in monetary terms were the issues which sensitised the landowners all over. At many places unscrupulous forces took advantage of the situation and resorted to undesirable tactics to liquidate resistance. Where the administration or its political masters was opportunistic and lacked in commitment both to economic growth and social equity, it adopted a casual attitude and gave out signal that every methodology was fair if it led to victory of the money bag. In such turbid situation, fair play became a casualty. But this did not happen everywhere. The land owners sometimes showed grit and held on, to fight a prolonged confrontation. This was, however, never a fight between equals. While one side had all the facilities like single-window clearance, mineral concession, tax holiday etc; the other party faced the prospect of complete displacement--lock, stock and barrel! Where, however, the civil society demonstrated concern for equity and administration's posture was humane, there was effort for a lasting solution. The process sometimes got a helping stroke from some enlightened entrepreneurs. Some states revisited the issue of equity and brought about changes in the existing law to ensure liberal package to land owners when their land was acquired. Orissa unfortunately continued, by and large, to be indifferent to the genuine interest of the land owners. The prevailing picture betrays reluctance to bring the weaker partner—in this case, the landowners-- to the centre-stage. The R&R policy is crowded by pious declarations with weak enforceable arrangements. We have instances where rehabilitation colonies have not been declared as "villages" in the revenue records even after fifty years. It is a settled fact that an ordinary citizen, pitted against an insensitive governing apparatus, is always a loser.

Central Government finally responded to the issue and placed the draft National Land Acquisition and Rehabilitation Bill, 2011 in the public domain to enable public participation in the passage of an appropriate law on the matter. The draft Bill prohibits acquisition of multi cropped irrigated land. It also stipulates that the award of compensation and solatium for rural land would be at least six times the original market value of the land. It provides that land acquired for five years and not used for the purpose it was acquired, would be returned to the original owners. The rehabilitation package stipulated in the draft Bill is elaborate and includes subsistence allowance at Rs. 3000 per month per family for 12 months; Rs 2000 per month per family as annuity for 20 years, with appropriate index for inflation; a constructed house (in case the house is acquired) and Rs 50,000 for transportation. It provides for mandatory employment for one member per affected family or 2 lakh rupees if employment is not offered; and provides for offer of shares up to 25% of the compensation amount. The draft Bill proposes that the consent of 80 per cent of the project-affected families will be mandatory if the government acquires land for use by private companies for stated public purpose or PPP projects other than that for national highway. It also states that the public purpose once stated cannot be changed. The draft suggests that government will not be acquiring land for private companies for private purpose.

Against this backdrop, let us examine one case in Orissa, about a Power Project, and see if the interest of the people of the area has been looked after. The case relates to a coal based thermal power station being set up at Kamalanga village of Dhenkanal District by the GMR Energy Ltd. This site was perhaps selected by the promoter due to various advantages like proximity to source of water; nearby coal mines and other infrastructural facilities including the power grid sub-station at Meramandali and rail and road connectivity. The promoter had a MoU with the state government in June, 2006. While the land details etc submitted by the promoter for administrative approval were under scrutiny by the IDCO and the state government, the promoter requested IDCO to recommend to the Water Resources Department for changing the proposed alignment of distribution canal system of Rengali Right Bank Canal System coming within the proposed plant area. IDCO moved the Water Resources Department for favourable consideration of the proposal. Irrigation authorities took a view that while allocation of land for industries in the command areas of irrigation projects should be avoided, in exceptional cases like the case of the GMR Energy, the loss in the ayacut may be compensated through creation of at least the same extent of irrigated area elsewhere through lift irrigation facility and the GMR Energy should bear the cost and the project be completed within one year. Irrigation authorities also decided that the GMR Energy must bear the cost incurred by the Government in Rengali Project in respect of that portion of the work which would be rendered useless due to the requirement of the power plant of around 455 heactare of land in the command area of the Irrigation project. It was also recommended by the Irrigation Engineer in Chief that the Power Plant would be given water only after the compensatory lift irrigation project was made fully operational. Government in the Water Resources Department agreed to the exclusion of 455 hectare of land from the benefit of irrigation so that the power plant would be set up. Government also decided that 16.72 acres of land acquired for the irrigation project which is within the GMR project site and required to be alienated in fovour of the GMR must be paid for at the present market rate. While the Tahsildar, Odapada assessed the rate at Rs 7.50 lakh per acre, ADM assessed the rate at Rs3.50 lakh per acre. The land had been acquired for the Rengali Irrigation Project; but now this land is being transferred to an industry. This does not seem to be legally permissible.
The Coal Block allotted for the project is not in the vicinity of the plant. Coal would have to be hauled from great distance. This takes away a lot of justification for the Power Plant being at Kamalanga. The Project would lead to reduction of the ayacut area of the Rengali Irrigation Project. Owners of the land who would have enjoyed the facility of perennial irrigation would now be ousted because a power plant would be set up on their land. The MoU stipulated that the Power Plant would be commissioned within five years. Since the MoU was signed in June, 2006, the power plant should have been operational by June 2011. This has not happened. The Industry has been allocated 50 cusecs of water from the River Brahmani.

The case throws up many issues worth pondering. Whether it was in public interest to set up a thermal power plant in the ayacut of an irrigation project? Whether from the point of view of equity and fair play, it was desirable to reduce the ayacut by 455 hectares to accommodate the power plant? Whether any sane farmer would be volunteering to be ousted from his land which in near future would be irrigated and would have three crops a year? Whether the promise of having compensatory irrigation through lift points would be effective and durable and would benefit the farmers who would be uprooted from their land now coming within the Plant premises? Whether at this stage the Plant should not be relocated and the interest of the farmers protected? Whether it is legal for the Government to hand over around 16 hectares of land which was acquired for the Rengali Irrigation Project and on which canals etc were constructed, to the private entity for the Power Plant? I wonder whether the approach of the state government in respect of this power project gels well with the philosophy underlying the new law being contemplated by the Government of India.

*******************************

CITIZENS’ JOURNEY THROUGH THE PLATEAU OF INSENSITIVE GOVERNANCE

2011-09-16T21:14:00.001+05:30

That thousands of cases would be pending in various Courts and Tribunals of the country where the citizens would be craving justice for wrongs committed by the Government is a matter of great concern. I am yet to come across a sustained programme of the government which has effectively addressed this issue. Plight of the citizens continues; there is no sign that the insensitivity of the governing apparatus is on the wane. The time and resources needed in the fight of a citizen against the government to get what is due to him are beyond his capability. In many cases a citizen dies before getting justice. One of the persons killed in the terrorist attack in Delhi High Court this month had been to the Court in connection with the case of compensation for the death of his father in a road accident. Now he is dead and a large family has been left behind.
The National Litigation Policy aims at ensuring conduct of responsible litigation by the Central Government and urges every state government to evolve similar policies. The Policy recognizes that Government and its various agencies are the pre-dominant litigants in the Courts and Tribunals in the country. The policy aims at transforming the Government into an Efficient and Responsible litigant. It recognizes that Government’s responsibility is to protect the rights of the citizens and to respect their fundamental rights. Efficient litigant is about focussing on the core issues involved in the litigation and addressing them squarely; managing and conducting litigation in a cohesive, coordinated and time-bound manner; ensuring that good cases are won and bad cases are not needlessly persevered with. It is about a litigant who is sensitive to the facts that Government is not an ordinary litigant and that a litigation does not have to be won at any cost. Responsible litigant believes that litigation is not to be resorted to for the sake of litigating; that false pleas and technical points will not be taken and shall be discouraged. It means ensuring that the correct facts and all relevant documents will be placed before the court; that nothing will be suppressed from the court and there will be no attempt to mislead any court or Tribunal. Government must cease to be a compulsive litigant. A responsible litigant never believes in a philosophy that matters should be left to the courts for ultimate decision . The easy approach, “Let the court decide,” must be eschewed and condemned. The purpose underlying this policy is also to reduce Government litigation in courts so that valuable court time would be spent in resolving other pending cases so as to achieve the goal in the National Legal Mission to reduce average pendency time from 15 years to 3 years.
Unfortunately such a shift in the attitude of the government is yet to be perceived. Rather some amount of determination , through action or inaction, is discernible, to push the citizen to the wall and leave no other option for him than going to the Court. Why has such aberration taken firm root in our system? The Mahabharat provides insight into the malady.
“How should a king behave?” Yudhistira asked Bhisma.” Righteousness”, Bhisma answered,” is the watch word of a king. Nothing is greater than that in this world. Malice should have no place in the heart of a king. His senses should be perfectly under control. He should use his intelligence and he will then be glorious: swelling in greatness like the ocean fed with the waters of a thousand rivers.” “Poison kills but one man: so does a weapon. But wicked counsels destroy an entire kingdom with kings and subjects. The highest good is righteousness. The one supreme peace is forgiveness. Supreme contentment is knowledge. Supreme happiness is benevolence. A king can easily become great by doing just two things: refraining from harsh speech and disregarding those that are wicked. Three crimes are considered to be terrible: theft of another’s property, outrage of another man’s wife and breach with friends. Three things destroy the soul: lust, anger and covetousness. Three are essential: a follower, one who seeks protection and one who has come to your abode. These should be protected. A king, although powerful, should never confer with these four: men of small sense, men that procrastinate, men who are indolent and men who flatter. Five things have to be worshiped: father, mother, fire, the preceptor and the soul. Six faults should be avoided by a king who wishes to be great: sleep, drowsiness, fear, anger, indolence and procrastination. These six should not be forsaken: truth, charity, diligence, benevolence, forgiveness and patience. A king should renounce the seven faults [which are women, dice, hunting, harshness of speech, drinking, severity of punishment, and waste of wealth]. Eight things glorify a king: wisdom, high birth, self-restraint, learning, prowess, moderation in speech, gifts given with discrimination, and gratitude. This human body is a house with nine doors, three pillars, and five witnesses. It is presided over by the soul. The king who knows this is wise. These ten do not know what virtue is: the intoxicated, the inattentive, the raving, the fatigued, the angry, the starving, the dejected, the covetous, the frightened and the lustful.” (Mahabharata, translated by Kamala Subramaniam, published by Bharatiya Vidya Bhavan, Bombay).This explains why a citizen suffers at the hand of the government. Wherever the citizen comes across noble persons holding public offices, his sufferings end early and he gets justice. The experience of an elderly citizen of Bhubaneswar substantiates this assumption.
Orissa Human Rights Commission in OHRC Case No 2015 of 2010 dealt with a matter related to a seventy year old citizen who was aggrieved by the refusal of permission by the Orissa State Housing Board to sell his house at Baliapanda in Puri town and had prayed for intervention of the Commission. The Housing Board took the stand that Government in Housing & Urban Development Department issued a press note on 30-09-2000 imposing ban on sale/transfer/granting lease and construction activities over land measuring 705 acres of land at Baliapanda including the land on which the petitioner’s house stood, for preservation of sweet water. Secretary of the Housing Board admitted that permission was granted to some allottees even after publication of the press note. His defence was that the press note was not in the knowledge of the authorities of the Housing Board. The Commission in a landmark Order stated that it was not clear from the report of the Housing Board if the Government had taken any conscious decision imposing ban on the sale/transfer/granting lease and construction activities over lands measuring 705 acres in Baliapanda for preserving underground sweet water. In the absence of government order, press note imposing the ban was non-est in the eye of law. The Commission also held that in the absence of law it was not permissible to impose such a ban. It held that persons who purchased the houses from the Housing Board at Baliapanda were the owners of the respective houses and those were their private properties. An owner of the immovable property has a right to transfer it by way of sale, lease etc. The Government or the Housing Board cannot deprive them of their right by issuing a press note or by an executive fiat. For doing this, a law has to be made.
This Order put an end to suffering and harassment the senior citizen suffered for years solely due to an insensitive government system that seems to have lost the power of discrimination apart from being indifferent to the rights of the citizens and its own duties towards them. This senior citizen could get the sale deed executed by virtue of the Order of the Human Rights Commission. He thereafter went to Puri to get the sale deed registered in the office of the Sub Registrar. All these years of running from pillar to post had made him bitter about the existing system. He was however pleasantly surprised by the helpful attitude of this young officer , a young lady with a PhD in Sociology, who was not only extremely courteous but established the right rapport by calling the elderly person “Mousa”(uncle) and offering him a chair. She waited till the buyer of the property reached her office and the document was accepted for registration.
The reason I write this piece is to highlight the great service these two public institutions rendered by upholding the rights and dignity of a citizen. I would only hope that other institutions whose primary duty is also to serve the citizens of our country drew inspiration from this case.
*************************

DREAM OF A BUREAUCRAT (PART II)

2011-09-09T08:03:00.003+05:30

Koraput district then was witnessing a lot of social transformation. Vinobaji spent many days in the district receiving great response to his call for Bhoodan and Gramdan. Many social workers of national eminence were working in different parts of the district. My father was working as a teacher in a school near Gudari. After the Block Development Project was inaugurated, he tendered his resignation and started working in a remote part of the Block to arouse social awakening among the simple but poor people of the area. The only other breadwinner of the family was my uncle who was working as a Forest Guard. He encouraged me to continue my studies despite the fact that my father was no longer in a position to help me financially. Six months after, funds for a tank in my native village were sanctioned. My uncle being a respectable person of the village suggested that with the funds sanctioned, we should have two tanks for which there was need. This would be possible if the villagers agreed to accept lesser wage on the ground that the tanks would be for the benefit of their own families and their domestic animals. Over this suggestion, the villagers got divided and the group opposed to the suggestion of my uncle, succeeded in getting a contractor fixed up for the project. Only one small tank could be constructed; that too, after a lapse of three years! My uncle left the government job and the village after his suggestion was not accepted and the villagers got divided. This decision of my uncle meant disruption of my study. I got myself trained at Wardha to look after the health of cattle through the kindness of one of the social workers who happened to know my family. Compulsion of poverty made me join the Government service. It also provided me wonderful opportunity to mix with the poorer segments of the society. I was posted as a livestock inspector in this area twenty-one years ago. Six years after joining my job, I met a young man in Karlapani in whom I found a rare mission of life. I was convinced that I could achieve something worthwhile. Both of us discussed on and on for many days on various options to improve the lot of our own people. We decided at last to concentrate on one village to which I am guiding you this night," he said.
"Please be mindful of the narrow bridge," Jitamanyu cautioned me. We negotiated, what I later come to know, was a sophisticated suspension bridge, narrow, barely wide for a bullock-cart to pass. I noticed in the predawn light the remnant of an old car, upside down, like a dead cockroach, in a ditch by the side of the road, on the bank of the rivulet that we had just crossed through the bridge. "That is the father-in-law's car," he said. I was no wiser with this clarification. "Whose father-in-law", I asked. He had a laugh. "This is a long story", he continued. I was reassured that an interesting narration would follow which would make the rest of the journey even more amusing. "Gitimoy had won a scholarship to study, but decided to join the Civil Service primarily with a view to participating in rural reconstruction. He would have been the first person from this village to join the IAS. It was in the month of May; Gitimoy was preparing for joining the training course. An unknown gentleman called on his poor parents and made an abrupt proposition for matrimonial alliance between Gitimoy and his daughter. He introduced himself as a very rich contractor, based in Calcutta, and offered a lot of gold; a house in the city, a lot of cash and a car to the boy. The gentleman was persuaded to stay on for lunch. He obliged. While he was resting after a simple village meal, the villagers had decided to convey to him a unique message. Gitimoy had his tacit consent to the decision. The wooden bridge over the rivulet was dismantled in a hurry in order to make it totally unfit for the car of the visitor to leave the village. The villagers came up to the rivulet to bid him farewell and requested him to leave his car as dowry to the village. Shortly thereafter Gitimoy married the daughter of a freedom fighter who had died years ago leaving his wife and the lone child in the care of the villagers of Karlapani.
This event was a turning point in the lives of the villagers. Gitimoy decided not to join the coveted service. Instead, he set up a modest laboratory in the village for working out innovation in agricultural activity. I had been working as a Livestock Inspector in this part of the district for years and did whatever was possible to help the villagers in improving the cattle stock. Within three years all the households of Karlapani had improved calves. Villagers started selling surplus milk in hundreds of litres. You know, the village has a population of 750; but the 185 families have 750 high yielding cows.
Gitimoy spoke and the villagers listened. He would produce seedlings in his laboratory; he would recommend use of improved seeds and the villagers, without exception, would use them. He would talk about the collapse of the international power structure based on bipolarization; he would explain the futility of the ethnic cleansing operations indulged in by intolerant groups in different parts of the world. He would talk at length of the philosophy of Emperor Ashoka as enshrined in the rock edicts near Bhubaneswar after the Kalinga war. The villagers would listen to him and would appreciate. They agreed that all voters of the village should always exercise their franchise in every election; but they would have nothing to do with boisterous propaganda; processions; speeches over microphones; posters & hoardings in the village. The villagers would put a big wooden box tied to one end of the narrow suspension bridge at the entrance of the village. The box would have a slit at the top; candidates or their representatives would put copies of their manifesto into the box. Each voter would go through them and decide whom to vote for. "That sounds interesting!" I said. "But what about government functionaries? Do they visit the village?" I asked, "What is the use?" Jitamanyu replied. "The villagers run their own school; enrolment is universal. They maintain their roads; they have community lighting arrangements by optimum utilization of solar energy. There are biogas plants; both for the community and for individual use. We have no problem of faulty electric meters; no such innovation for stealing energy through hooking of low-tension lines!"
Since there is no motorable road to the village after the wooden bridge was dismantled and the narrow suspension bridge erected, high functionaries of the government are disinclined to visit the village. And what should they come for? To see how well a system can be run through people's participation and without any interface with government? Jitamanyu reasoned. I smiled. "What about dispensation of justice?" I asked. "Why should people of Karlapani take recourse to injustice?" He retorted. "We have a community hall; meetings are held there regularly. Differences are thrashed out through discussion".

By now we had entered the village. Jitamanyu escorted me to a beautiful bungalow that, he said, was the guesthouse. Cycling in darkness was a queer feeling but it was a refreshing experience. I was ushered into a room and was made to settle down on the sofa and Jitamanyu left the room. Shortly thereafter I saw a healthy, handsome eight-year-old child coming into the room. He offered me a glass of butter-milk which had liberal application of garlic paste; salt and mint; made just the way my wife makes for me. I was curious to know about the boy. As if he could read my mind. “Jitamanyu is my name. I am the only child of Gitimoy Choudhury,” he said almost immediately; "And what about the older Jitamanyu who had escorted me in the darkness?" I asked. He withdrew a bit and almost whispered "uncle died eight years ago. He initiated all the good things in the village you see and the villagers continued walking in the same direction even after his death. To continue his legacy, my father calls me Jitamanyu. I was born shortly after the older Jitamanyu passed away".
( CONCLUDED)
********************

DREAM OF A BUREAUCRAT- Part I

2011-09-04T21:24:00.003+05:30

I was not sure if I really heard someone knocking at the door of the suit in the circuit house at that hour of the night. After reflection over a few moments, I dismissed the matter. After a pause, however, there was yet another volley of sound on the door, though each one was gentle. I could no more dismiss the phenomenon as a trick of a benign spirit determined to enter my subconscious frame to recount in my dream my failures in life. I had difficulty in locating the torchlight as the circuit house had been plunged into total darkness immediately after eleven. The idea of enjoying my sleep without feeling suffocated inside a mosquito net had to be abandoned in deference to the hordes of mosquitoes which descended on me after the room was plunged into darkness. My refuge inside the mosquito net brought little relief in the mid-May summer. To add to my discomfiture, nearly two dozens of determined mosquitoes had managed to sneak into the net and found their lone target handy to feast on. After a while, I stopped hitting different parts of my body in my determination to kill each one of them. I realized that I had not been able to reduce their number, as the number of simultaneous pricking sensations on my body did not seem to lessen. Instead, I started tossing my frame constantly and in that process my tiny torchlight had rolled into a nice crevice that was at the disturbed joining-line of the two foamy mattresses on the wide bed on which I was the sole occupant. After groping in the dark for some time, I did retrieve the useful instrument and extricated myself from the bed to proceed towards the door to see the visitor. Before opening the latch I wanted to be sure about the time of the night when I was about to open the door to meet, in all probability, a stranger. My strong and bulky frame somehow reassured me that it was safe to see the caller. I opened the door and without making any effort to know who the caller was, ushered him into my room. I succeeded in locating a candle and the matchbox, which the thoughtful manager of the circuit house had managed to be kept in the room. The candle would not keep itself erect on the coffee table. I managed to tuck it into an unusually large porcelain ashtray. The room was sufficiently lighted. The stranger had a weak physique, a feature that was of great assurance to me. Even if he were up to some physical harm, he would be no match to me; at least so I reasoned within myself. In a huff however, I bolted the door from within. This was done to ward off any outside support that he would have banked upon to inflict physical harm on me. Thus, after making the battleground absolutely safe for me, I showed a human face at the stranger and enquired if I could be of any help to him at that hour of the night. He was quite aware of the mess he had landed himself in and was apologetic both in his appearance as well as in his tone. I had a feeling that I had seen that man somewhere in course of my hectic touring during the day; but since he must not have been an important functionary, he could not perhaps interact with me directly though he was with the accompanying team of local officials. I recollected that on a couple of occasions, this man, with a sharp nose and a pair of sunken eyes, had tried to attract my attention by way of suggesting clarifications sought by me on a few specific issues related to the prevailing situation in the villages I visited. The near-total absence of bovine wealth in a big village, primarily inhabited by people who, by caste, are traditional keepers of cows, was a matter of concern to me. The village had been visited by drought for three consecutive years and this had taken a heavy toll of the fortunes of even the richer segments of the villagers. The plight of the poorer was miserable indeed. How many twists and turns the fate of a poor man takes during his life span! I wondered. Every turn only pushes him further downhill into more and more misery. Gradually, all the cows and bullocks had been sold off so that a few human beings, their erstwhile owners, could live for a few more years. I was trying to assuage the sagging morale of the villagers and promising them of liberal government intervention. In course of my talk, I must admit, there was a great deal of patronizing. This gentleman had pushed himself forward to come near me and had almost said that it was easier said than done when he was pushed back by a few villagers and a couple of officials. "I would seek your forgiveness Sir," he said," for having been so impertinent as to disrupt your hours of rest and force myself into your company at this part of the night." I made him feel comfortable by saying that the hot summer night without electricity was bad enough; but armed with a determined battalion of mosquitoes, the hot night had indeed been militant; I being at the receiving end! I sincerely wanted a respite and his visit, therefore, provided the much needed relief. "In fact I am grateful to you for your visit." I said. "I shall be brief Sir," he said. "Since you would be leaving this place next morning for your headquarters, I would request you to consider changing the schedule for I have something to show to you and you alone tomorrow. I would like you to accompany me to Karlapani village so that I could show to you something worthwhile. It would indeed be a unique experience if we could reach the village to witness the sunrise there. Strangely, this invitation from an unknown person to visit an obscure village had an overwhelming impact on me. Without bothering to know what was in store for me, I agreed to accompany him but suggested that he should look for the driver of my vehicle so that we could commence the journey without delay. He smiled and suggested that we perform the journey in bicycle, as the village could not be approached by a motor vehicle. "But how do I find a cycle for me and also for you, at this hour of the night?" I asked. He requested me not to worry. He had made arrangements and two cycles had been kept ready at the portico of the circuit house, he said. I washed my face and splashed cold water into my lazy eyes to keep them wide open; changed my dress; silently bolted the door from outside and wheeled away from the circuit house, almost silently with my stranger friend. “What is so special about your village Karlapani," I asked him, 'which you would like me to see?' "First of all let us get introduced to each other rather well", he suggested with a smile on his face. "I am Jitamanyu Pradhan, about two years older than you. I work as a livestock inspector and I have been in my present place of posting for twenty-one years. Do you remember when Gudari Block Development Project in Koraput district was inaugurated?" He asked me suddenly. "On 5th May, 1955 (5.5.55)." I replied almost instantaneously for that was a date that was easy to remember and also because I had, out of curiosity about how a project gets inaugurated, had accompanied my father to the place. He laughed, a bit loudly and told me that he had seen me, son of the Collector sahib, on that day at Gudari. "Those were the days when I was studying in Ninth Class and you were perhaps in Class Seven. (To be concluded) *******************

FONDNESS FOR WORKING SLOW MAKES US LESS COMPETITIVE

2011-08-27T12:39:00.002+05:30

Shri Bhagawat Dayal Sharma, the then Governor of Orissa, while speaking in the farewell function held in his honour in Soochana Bhavan in Bhubaneswar sometime in 1980, recollected his sweet experience in Orissa ; but made a very interesting observation which I remember. Widely known as a devotee of Lord Jagannath, he used to make regular visits to the temple. He wondered why the road between Bhubaneswar and Puri remained always under construction during his entire stay in Orissa for about thirty months. His parting advice to us was “complete projects on time”. It is sad that our fondness for working slow and working with a very casual approach are widely known and adversely commented upon. This characteristic feature manifests in many ways. Files in public offices move slow; cleanliness in public offices and sanitation in government hospitals become victims in such a situation. Prevalence of such an environment for long make people accept even an unhealthy and unhygienic environment as normal. A non responsive public office also is the outcome of such a situation.
Mr. SL Maddox, ICS; Settlement Officer, in the final report on the survey and settlement of the province of Orissa for the period 1890-1900 made interesting observations about us (Uriyas). A few of his observations I have placed in this piece that can provide opportunity for introspection.
“An Uriya can hardly be made to hurry himself, and he regards absence without leave and disregard for orders as the most venial of offences. He would as a rule far rather make Rs12 a month by a moderate amount of work than half as much again by staying over time. The same love of ease and dislike of hard work permeates all classes. When times were hard and numbers of agriculturists were driven to do earthwork on the railway, they might easily have earned four annas or more a day, but as a rule they would only make two annas or three annas, and then would go home for rest two days in the week.
There is no doubt that the last century of unrest and oppression by the Moghuls and specially by the Mahrattas, before the British accession, made some permanent effect in the Uriya character. To sow year after year without knowing by whom the fruits would be gathered, to be continually harried and plundered must necessarily discourage thrift and promote improvidence. For this reason it seems to me that in his own country at any rate the Uriya is not disposed to be a hard worker”.
One may agree; one may not, with these observations. Let us see how we are performing even now; one hundred and twenty years after Mr Maddox wrote his extremely readable and informative Report. Can we explain why does the fly over project at Raj Mahal Square , in the heart of the capital city of Bhubaneswar remain incomplete for years, without any public knowledge about when it would be completed? Can we explain why the important state highway between Cuttack and Paradip would be on renovation for years without any enforceable assurance about the date of its completion? Why, one would like to ask, should Dengue break out; or, for that matter Cholera. These two diseases are related with the general hygiene of the environment. Fortunately Mr Maddox related the resigned and fatalistic attitude of the Uriyas to the sustained exploitations of the Mughals and the Mahrattas. There is no reason why the race would still suffer the same sense of deprivation after hundreds of years and remain contented with a modest output. Government projects and programmes need to acquire a much greater urgency to dispel the lingering feeling about our race being easy going or slow moving. The other tool could be through government policy that does not promote slowing down of productive activities in the economy. It is now widely discussed that availability of labour for agricultural activities has been adversely affected due to the two rupee rice as people have no motivation to earn extra by working in the fields. We seem to lose sight of the rationale behind cheap rice. It is meant to avoid deprivation and ensure food security. It also enables the poor household to be more productive. The programme is never meant to promote improvidence or encourage an idle life. Government needs to revisit the issue and ensure that the real needy alone becomes the beneficiary of the cheap rice programme.
Our society stands to lose heavily if our love for working slow continues. Industrial activities have been throwing up opportunities for skilled work. Productivity of a person has emerged as a major tool for gaining entry into the arena of industrial activity. It is time we appreciated that employment of the sons of the soil cannot be ensured at the cost of productivity. Flexing muscles to ensue skilled jobs for our local people would only be counterproductive as new enterprises would be shy of coming to a state where work-culture gets poor score. In such an environment, there is greater chance of even existing enterprises going sick.
Many corporate hospitals have come up in different parts of the country. After Apollo’s entry, some more such hospitals may be set up in Orissa too. A well equipped modern hospital has the potential of creating jobs at the rate of eight per bed. Our nursing sisters and para medical staff have to exhibit great professionalism to gain entry into such medical institutions. If they are found less professional or slack in their dedication, better personnel from other places could prevent our boys and girls getting into this sector. Our state is likely to witness housing activities on a scale much larger than what is going on at present. This sector too needs skilled workers. We see deployment of such workers from other states. Our youth must take advantage of the possibilities in this sector.
Unfortunately young boys and girls of our state have not been in jobs abroad on the same scale as has been the case in respect of some other states. Those who have experience of good earning abroad have realised that good earnings have been possible only through good workmanship and higher productivity. When such people return home, they become messengers of this principle and they motivate others. Such an atmosphere is yet to set in in our state. Our youth therefore is most likely to lose out in the race in the days of market liberalization unless we make them realize that the youth must demonstrate that it is no less competitive and productive. I remember an interesting interaction with a young man years ago in a flight from Delhi to Bhubaneswar through Varanasi. I used to take this flight for many years and would always find that many passengers with heavy baggage and electronic equipment would get into this flight from Delhi. One would know that they were returning home from the middle east. Most of them would get down at Varanasi. One of them did not in one of the flights taken by me in this route and I decided to talk to him. This young man had left for the middle east shortly after his marriage and would see his son for the first time in his village in Jagatsinghpur District. He was a mechanic in an automobile workshop.” How long would you be away from your family and work abroad” I asked. He would return, he assured me, after a few years. “Where would you work on return”? I asked him. “Not in Orissa”, he replied. “Why”? I asked. “Here the atmosphere is somewhat different. I would go home; my mother would plead with me to stay for a fortnight longer; I would oblige her and finally decide to leave when I would hear wife crying with a plea to stay on till the coming puja. I cannot have truce with such an environment because I want to work. I would return to India ; but would prefer to be away from home”, he finally told me with conviction. He diagnosed our society, I am afraid, correctly; hundred years after Mr. Maddox wrote his Report.
It is high time we introspected and reinvented ourselves. This exercise needs to be done by our government as well. We need to be in tune with the time.
********************

ANNA HAZARE-- THE JUGGARNAUT

2011-08-20T19:53:00.001+05:30

What does the icon called Ann Hazare stand for? As a person, he has been subjected to the choicest of abuses by the spokespersons of a major political Party which only demonstrated a puerile mindset and convinced millions of Indians about the depth of decay the Party has descended to. A leader of another Political Party displayed his perversion by saying that he once asked Anna to name the civil society that elected him the leader. I am sure he would have got an answer after seeing the rain drenched thousands on Delhi streets on the 19th August when Anna emerged from Tihar Jail and proceeded to the Ram Lila ground. Many started portraying the Anna Brigade as usurper of power, set to hijack the functioning of the Constitutional institutions of the country. They could not appreciate that the government has failed to address the vital issues relating to the millions; they also failed to notice when the government gave out unmistakable signal that looting is the primary function of people in power. People of the country have given a resounding response to the call of Anna. The corrupt ones are a worried lot today. So are the bribe givers, who have spread their empire far too long. Anna has emerged as the mascot of hope for the common man. In him a rickshaw puller sees a better tomorrow for himself and his family. Anna’s constituency spreads to every nook and corner of the country where the suffering citizens had almost accepted an unjust and inequitable system as absolutely normal and realised that all men cannot be equal. They had accepted the tormentors as well as their depredation as divinely ordained. Fortunately the Juggernaut of Anna’s caravan rolls on and is gaining momentum and the common man is now gaining strength to believe that change is possible. One is now optimistic that the text of the Lok Pal Bill would undergo meaningful changes. It now looks possible that satisfactory arrangement, not necessarily in the Lok Pal Bill; but acceptable to all stake holders, would be made for covering the judiciary as well.
I would like to see this movement as the beginning of a widespread cleaning operation. Such a process, unfortunately, is yet to start. Governments in different states would have by now initiated meaningful reforms to ensure an entitlement package for the citizens. What would the package look like? Some illustrations would be helpful. A citizen not having a ration card should have a hassle free procedure to have an application form. He would just fill it and put it in a drop box kept in the Panchayat Office. He need not run from pillar to post. He gets the card as his entitlement after a week as per the declaration in the application form. If a citizen wants to covert his lease hold land to free hold in Bhubaneswar, he need not go into the State Secretariat. I see no rationale in having the government estate wing in the Secretariat where accessibility is a difficult issue. Conversion into free hold should be automatic after the lessee goes through a simple procedure. Why should a citizen run to the office of the Bhubaneswar Development Authority to get a small modification project approved for his house? Why should mutation cases remain pending for months and years and the chaos would continue without any sign of reform? Seeing the ingenuity of perverse minds collectively working overtime to make the life of the citizens more and more miserable through maize of rules, regulations and procedures one realises today that only a gifted genius would have invented the austere post office where a person pays even now the official price and gets a postcard or a postage stamp. If a student wants to avail of a loan for higher studies, he goes to the nearest branch of a Bank to get a copy of the application form free of cost. I understand that such copies are invariably not available. One runs to the right man, pays a price and gets a copy. Should such a thing continue? No government office would give you a firm date when you would receive the response from government.
I remember an experience of mine years ago while I was Chairman of the Paradip Port. I had attended some programmes at Manila and Yokohama and on my way back, I had to stay for sometime at Bangkok. I thought of having a visa to avoid any inconvenience. Our embassy was quite helpful and I deposited the application in Thai embassy at Manila. I was told to come the next day at a particular time. I did and the visa was ready. How many public offices in our state give such precise advice and act on it? A visit to the Tehsil office in Bhubanswar would any day be a memorable experience. It is difficult to know who among the laughing or gossiping persons in the hall or office room is an official with whom you would like to interact. Should we continue with such chaos that pervades most public offices? Functioning of government must reflect that it is in tune with a civilized society. Didn’t Mahatma Gandhi say, “A customer is the most important visitor on our premises. He is not an interruption in our work—he is the purpose of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to serve him?”
The situation in the field, by and large, remains uninfluenced by the rolling Juggarnaut , that Anna is. The howling winds still keep many unaffected. An illustration would be relevant. Through a question raised recently in a state legislature of India, a legislator wanted to know the number of times the Chief Minister of the state had attended to public grievances in his grievance cell in a year. The Minister did not have the figures with him. He assured the House that information would be furnished later. Only very few of the readers of this column would have difficulty in knowing the state and the Chief Minister the question was related to. In such a state of mal governance how can the common man expect that he would get justice? I would only hope that lovers of Democracy through out the country should seize the opportunity offered by Anna. Government machinery and the Civil Society activists should launch local initiatives without delay for a clean and honest system that respects the dignity of every individual. Should not the youth of our state make a beginning by initiating a movement to minimize the role of money in every election at different levels—be it the Panchayat or the Cooperative or the College Union? The countrymen would fail in their duty if Anna’s initiatives do not engulf the entire polity. Time has come to prove our worth and make Anna and the common man succeed.
************************

WE MUST IMPROVE CROPPING INTENSITY IN IRRIGATED AREAS IN ORISSA

2011-08-13T13:14:00.000+05:30

While writing on utilization of rain water, I had indicated that even in unirrigated areas of our state, we can have two crops in a year. If we take note of the annual precipitation of Orissa, one wonders why we should have any scarcity of water. Khariff crop requires 4800 cubic meters of water per hectare whereas rainfall per hectare is 15000 cum. The uncropped area also gets rain. This means that for every hectare of cropped area, nature gives us much more of rain water than the requirement of khariff. If we plan for three crops a year, the annual requirement would be 3 times 4800 cum i.e. 14,400 cum, which is less than the rain fall per hectare of cropped area. For an irrigated ayacut we collect water from a catchment that is generally three times the size of the ayacut. Availability of water should be 3 times of 15000 cum plus 15000 cum direct rainfall over the ayacut. These add up to 60,000 cum per ha.

Irrigation ayacuts are normally planned at 150% cropping intensity. Therefore consumption is not more than one & half times 4800cum i.e. 7200 cum per ha. The ratio of effective utilization of available water resource works out to about 12%. Where does the balance 88% water go? If it is going out without being utilized, then we should not have collected it at all. The paradox has been that we have a cake, eat only12% of it and throw away 88%. Can we afford this wanton wastage while the state suffers scarcity of water that manifests not only in drought but in dry ponds and dry wells? Should we not aim at 300 % cropping intensity in irrigated areas of the state? This is the background against which I had a discussion with the erudite Banamali Naik, the renowned Agriculture Engineer.

“Obviously the current technology is highly inadequate”, Mr Naik said. “Not only it is incapable of utilizing bulk of the available resource, it also fails to address many other vital issues of public interest”, Mr Naik told me, drawing his long experience of Hirakud command. He is quite confident that we can have over 250% cropping intensity in the command. To make this happen, he said, there has to be coordination between the Irrigation and Agriculture Department and both should take farmers into confidence. I agree.

We lose good amount of water of the reservoir through evaporation; there is conveyance loss too. Many lose their homes and land to make room for the reservoir; the dam and the canals. Are all these losses compensated by enhanced productivity in the ayacut? 65% of the water in the system goes unused, where as about 40% of the Rabi command remains fallow. If 35% water could command 60% of the Rabi ayacut with paddy, we need to make use of only 23% out of the unused water to cover 100% of rabi ayacut with paddy, Mr Naik reasons. Even if we use this much still we are left with a large quantum of water to think of a third crop like mustard and field pea in between two paddies in Hirakud ayacut.

We find that area under non-paddy crop has become significantly low in Hirakud command whereas Paddy area coverage has increased significantly not by drawing more water as would normally be expected but by utilizing less water than what has been originally allocated. If one looks for the changes in the system that has led to increase of Rabi paddy coverage, it has been through wide spread canal cutting. We need to identify where modification is needed. Our irrigation management recognizes only two seasons --- Kharif (1st June to 31st December) and Rabi (1st January to 30th April). It speaks of one opening date and one closing date for canals. In addition, it gives irrigation according to the need of the dominant crop during the season. Currently it is paddy. If any body wants to grow any other crop, the law says, he has to do it at his own risk. Under this operational principle, who would risk growing other crops? Thus paddy has remained the dominant crop because supply is given suiting to its need. For this reason, there has not been optimal utlisation of land and water in the Hirakud command.
If we want that non-paddy crops should also come up, one has to pay attention to the irrigation need of such crops. Let us take the example of mustard crop. Its growing time is 1st November to 15th February. The growing time partly falls in Kharif season and partly falls in Rabi. Since the predominant crop in Rabi also is paddy, how can mustard thrive? No body would like to grow it in lieu of paddy. If it is facilitated, at best people may be willing to grow it as an additional crop in between two paddy crops.
The optimum time for sowing mustard is first week of November. During this time half of soil pore space in the root zone should have been filled up with water and the other half should have air. In order to provide such moisture regime in uplands, the canal supply should close 10-15 days earlier (say by October 20) so that the soil in uplands gets sufficient time to get rid of the excess moisture, if any, and the farmer is able to complete harvesting of the kharif crop and prepare the land for sowing mustard. Canal supply schedule is the determinant factor. If it is planned based on crop need, any desired cropping pattern can be promoted. Mustard would need irrigation at flowering time i.e. about a month after sowing. For that the canal should open during 1st week of Dec (say on 1st Dec). When irrigation is given to mustard crop the entire root zone gets saturated. Saturation should be temporary. The soil must be given opportunity to get rid of the excess moisture. For that matter the canal supply must stop after giving one round of irrigation. This illustration explains how changes in canal management are key to raising cropping intensity.

We must adjust the agricultural seasons, Mr Naik feels, to accommodate three crops a year. The possible dates for the new seasons could be as follows: We have a period between 1st June and 20th October. We may call it new Kharif season. Paddy will be the dominant crop. We release water according to need from 1st June for raising early nursery. There may not be sufficient water in the dam. We have to maintain a carry over stock form previous Rabi. The period between 1st November and 31st January can be called winter Rabi. Non paddy crops can be made dominant during this season. If we are to grow a non-paddy crop in winter Rabi, it has to be preceded by a short duration paddy crop in Kharif. Kharif paddy in lowlands should adjust to the new release pattern. Period between 1st February and 30th April may be called summer (daluo) season. We should make paddy the dominant crop and release water according to its need. Tail ends of canals will go dry in this season but drains will be running full because of aerobic irrigation. Tail ends of canals can be given water by pumping from drainage ways as well as from waterlogged lands. Pumping cost would work out to be nominal when compared to the value of additional production it can promote. It will also relieve water logging. Irrigation efficiency will also improve.

We should persuade farmers to adopt SRI method of paddy cultivation and thereby we economise on water and farmers grow their preferred crop. In a democratic set up, we can innovate in agriculture only with willing participation of people. Just by adjusting the dates of opening and closure of canals, we would be able to take cropping intensity beyond 200% and that too at no additional cost. I would hope that government would initiate meaningful initiative to make it happen in all irrigation projects. We have seen huge wastage of irrigation water far too long.

*******************

WHILE DEMAND AND PRICE KEEP INCREASING FOR GOLD, POOR FAMILIES NEED HELP FOR DAUGHTERS.

2011-08-06T10:05:00.001+05:30

One finds reference to gold in ancient Indian mythology and religious scriptures. Gold is believed to be the metal with maximum potency and healing effect on the user. Karna, known for charity and sacrifice, was said to have been gifted with golden armour and a pair of earrings since birth. The armour protected him from the deadliest of weapons. It was deceitfully taken away from him by Lord Indra which eventually led to Karna’s death. Love for gold by Indians is not only demonstrated by the their fondness for jewellery, it also manifests in the use of gold in our great temples like the Golden Temple at Amritsar and in the Temple of Lord Venkateswara at Tirupati. As per one assessment, India is home to over 18000 tonnes of gold, accounting for about 12% of the global stock. According to figures with the Multi Commodity Exchange of India, the total stock of gold in the country is about 13,000 tonnes, about 9 percent of the world stock. India is the world’s largest consumer of gold in jewellery, with an annual demand estimated at about 800 tonnes. While the country exports about 60 tonnes of the metal annually, it imports about 600 tonnes. In 2009, total Indian gold demand reached US$19 billion, accounting for 15 per cent of the global gold market. Since the last ten years, the value of gold demand in India has increased at an average rate of 13 per cent per year. In India, gold is perceived as a symbol of security and as a sign of prosperity. Purchases of gold jewellery are considered as a form of liquid and tradable investment. Gold jewellery accounted for around 75 per cent of total Indian gold demand in 2009.
Currently only a few designated agencies such as MMTC are allowed to import gold bars. Since 1997 the RBI has authorised these agencies, including commercial banks to import gold, but only for sale or loan to jewellers and exporters. At present 13 banks are active in the import of gold. Under a decentralized gold import regime, there could be as many as 2,000 importers. There seems to be a case for developing a gold deposit market in India. Consumers could then buy standardised gold of smaller denominations at retail counters, and could keep them with banks in exchange for gold certificates. The development of a more robust market for the yellow metal will also kill the residual hawala that might be taking place through gold smuggling because of the marginal premium commanded by the metal in the domestic market, caused at present by restrictive imports. A thriving gold deposit market in the future could also help monetise large amounts of gold lying with households. This could help divert such savings for productive investments in the economy.
Gold price has been moving northward. While gold per gram was available at only Rs16.82 in 1974, a gram of gold cost Rs 2301.91 on July 29, 2011 representing an increase of 13588.38%. Yet we are nowhere in a mood to avoid purchasing gold. The trading community as well as analysts are hopeful that the growing middle class; the growth of our economy and our abiding faith that weddings would have to be associated with gold ornaments are factors that lend strength to such assessment. Gold has been in the official reserve of various countries though its share on the total reserves varies considerably from country to country. In case of USA, the gold reserve of 8134 tonnes represents 72% of the official reserve. Euro area holds 10793 tonnes of gold representing 58% of the official reserve. In case of India gold held by RBI is 558 tonnes representing 7% of the official reserve. In case of China, gold held is 1054 tonnes but it is only 2% of the official reserve. Reserve Bank of India purchased 200 tonnes of gold in 2009 when the price was Rs 49000 per ounce (28.35 grams). This gave a signal to the trade that purchasing gold at this rate was a sound proposition.
Though India is the largest gold market in the world, millions of households do not possess the precious metal. Consumption intensity of jewellery, which means per capita consumption of jewellery, is only 0.4 grams in India. Per capita consumption in Thailand and China is still lower. In case of countries like Saudi Arabia; Turkey and Italy, per capita consumption is higher. How much gold one buys in a year in Orissa should be a difficult question to answer; but it is worth making a guess. In case of Orissa we may assume that the per capita jewellery consumption in a year would be around 0.3 gram. On this basis, one would think that the people of Orissa would be buying gold to the extent of 10000 to 12000 kilograms (ten to twelve tonnes) per year worth Rs 2500 to Rs 2750 crore.
Gold has been closely tied to Indian weddings. Purchases for weddings account for half of the annual demand for jewellery. Half of our country’s population comprises persons below the age of twenty five and it is expected that there would be around 150 million weddings over the decade. In case of Orissa we can anticipate 5.5 lakh weddings per year. I would assume that in about four lakh weddings, brides would be from BPL (Below Poverty Line) families. I would suggest that government gift a Mangal Sutra having five grams of gold to these brides. This measure would mean an annual buying of two tonnes of gold, the cost of which at the present rate would be around Rs 460 crores. Such a measure would promote economic empowerment of the women. Various political parties may take note of this proposal and consider making appropriate announcements at the opportune time.
Should economically well off people of Orissa prefer to buy gold like rich people of other states? Should we treat gold as a necessity or luxury? These issues merit some discussion. Some years ago I invested on mutual funds. After a few years there was turmoil in the market and prices dipped. I held on to my investments for sometime and then started offloading. In some cases I gained and in some I lost. On the whole, the return on my investment worked out to about eight percent per annum. I bought a car for Rs five lakh and after four years, sold it for only Rs 1.50 lakh. I disposed of a television set purchased for Rs 20000 some years ago for only one thousand rupees. For my music system there was no buyer and I gifted it to a reluctant beneficiary. Had I invested in gold in stead, I would have been much better off. I am sure such reasoning would be motivating many whom I see in jewellery shops in Bhubaneswar. People who have money and no need for ornaments, are increasingly buying coins or bars. This trend would continue. Parents would continue to buy gold jewellery for their daughters for wedding. Craving for gold by families who do not have it would also increase. However, there is need for moderation instead of obsession in our approach to gold. Those who watched the live telecast of the wedding of Prince William and Kate Middleton (now Duke and Duchess of Cambridge) on the 29th April, 2011 would surely remember the elegant ring (made of rare Welsh gold which is in use by the Monarchy in Royal weddings for 88 years) the prince put in the finger of his wife. That should be our approach towards gold as well. Let’s buy just that much gold for the bride that is absolutely necessary. After all a woman loves her man for his qualities; not for the gold he gives her.

***********************

APPRECIATION OF SOIL-WATER-PLANT RELATIONSHIP WOULD LEAD TO FARMER-FRIENDLY TECHNOLOGY

2011-07-29T21:22:00.001+05:30

Top three meters of the earth’s surface is formed by natural disintegration of the parent rock. The process creates voids between the adjacent pieces. The aggregate voids amount to about 40-50% of pore space inside the overall volume which, in appropriate condition, can provide storage for rain water. This concept, if widely implemented, could render necessity of huge irrigation reservoirs redundant. In the context of the growing articulation of unavoidable trauma arising out of displacement of people due to various projects, we should seriously consider alternative solution to irrigation through conventional system. I do not expect that our irrigation engineers and their supporters would agree to this approach immediately; but time for an urgent discussion on this alternative to facilitate a consensus on the issue seems to have arrived.

Agricultural soil supports crop life. If 50% of the pore space within the topmost layer is filled with water, soil is said to be saturated. If water stands on such soil, it is said to be super saturated. We must appreciate that only less than half of the water available at saturation is utilisable by crop plants. While many crops, besides paddy, can tolerate presence of the excess water at saturation/super saturation state; many other commonly grown crops need unsaturated soils for survival. This shows that for growing different crops, availability of water has to be different. Soil-moisture regime (percentage of water-filled pores in soil) is the determinant factor for crop choice. High land and medium land are ideal for non paddy crops. If these lands are oversaturated, we lose this vast natural asset for growing non paddy crops. The reason why our irrigated commands are not having mixed pattern of cropping is due to non appreciation of this basic concept. If we continue to saturate all types of land; viz, upland; medium land and low land; paddy would continue to be the dominant crop and growth of other crops would continue to elude us

When irrigation is given, top soil gets saturated first. In order to lessen wetness of such soil, the incoming flow of water of the canals must stop long enough so that excess water drains out to make room for air. Canal water must stop flowing for some more time to allow at least half of the available moisture to be used up by the crop. Irrigation may resume only after that. For this to happen, our irrigation engineers have to reorient their perception. Fortunately about 50% of the total water available in saturated soil is loosely held (termed as gravitational water) and, if given sufficient time, can be easily drained out by gravity, leaving the other half which remains adsorbed by soil particles. Only half of it can be used through transpiration by plants. The rest cannot be easily extracted by plants. It remains in the soil and should be discounted from the next irrigation. Such management is possible if the command areas of our irrigation projects are put to detailed investigation for assessing the moisture regime at micro level. It would be improper exploitation of our land and water if we do not do this analysis on the plea that an irrigation project is too vast an enterprise to warrant detailed analysis of the ayacut and make release of water dependent upon the result of such analysis. Our irrigation systems, created with huge investment, nevertheless need fine tuning to make agriculture productive.

The subsurface water moves along the hydraulic gradient which keeps on changing from point to point according to the resistance offered by the sub surface soil. Technology is available to track the spread of subsurface water. We can locate areas within the ayacut which are water enriched through gravitational flow. Such area should receive discounted irrigation. Scientists working as system users had tried this principle and had successfully segregated non-paddy and paddy area in Hirakud command during 78-79 to 81-82.It is possible to repeat such experiment. Characteristics of the soil must be considered to get the desired effect. Lack of understanding of soil-water-plant relationship has led to a paddy dominant crop pattern in all irrigation command of Orissa. Pattern of moisture extraction by crop plants is a feature our irrigation engineers should make increasing use of. Irrigation laws drafted in India years ago look anachronistic today and need refinement in view of the evolution of large number of photo-insensitive varieties of different crops. Delivery patterns have to be re-fixed accordingly.

Scarcity of water at tail ends of the canals is widely known in the command area of Hirakud Irrigation project. In spite of spending crores of rupees repeatedly on repairs, tail end scarcity continues to be an issue and only confirms that such repairs are not a solution. It is possible to make tail ends as green as the head ends with right measures.We have to note that for every unit of water consumed by paddy, two units are required to help carry it around. Ultimately the unconsumed part finds its way to the drain. At least one unit out of this must be collected and put back to the canal. If it is said that ‘canal cutting has come to stay’ it is not without any basis. Farmers have done it as a measure of desperation. They noticed that under the continuous supply pattern, the highland and medium lands were getting too wet for any non-paddy crop. Initially they left such lands fallow. Soon they discovered that paddy can be grown on them provided some additional water could be organised later. Initially water had to be taken stealthily because it was resisted by farmers at the tail end. A game of hide and seek went on for some time till the farmers at tail end gave up fighting. Thereafter canals were cut openly and paddy area increased close to 100% in all the head end outlet areas. All the while people were observing that the water being drawn through the cuts was becoming surplus for the head end outlet commands and was flowing down the drain. They soon found a way to irrigate the lower part of the tail end outlets. The upper part remained un-commanded because outlets were dry. The only option to enliven the dry outlets was to pump water from drains and put it in the dry canals. Through a pragmatic approach, but in violation of the existing law, the irrigation system has been tinkered with but paddy area in rabi increased.
We have to rationalize the delivery pattern as per the people’s need. There is every reason to believe that conjunctive use of water will lead to a win-win situation. Antagonism among farmers in different reaches of the ayacut will end; harmony will be restored. Repeated use of used water is the only option. Twice the volume of water required for irrigation flows into the drain/ sub-surface layers as surplus. If this water is left unused it will create drainage congestion. If we cut open drains to let it out of the irrigation commands the efficiency of water use will remain low, while a sizeable part of the command will be deprived of water. We have now two situations. On one hand we could have 50-70% Rabi command lying fallow and have 65% of water in the drains causing water logging. Need is to relieve drainage and provide irrigation to the rabi fallows. We have to adopt “Irrinage”. This term is being suggested in the world forums to give equal importance to drainage with irrigation.
Recycling by pumping has many advantages. Apart from removing drainage congestion and removing tail end scarcity, it has great scope for inducing a productive cropping pattern. Pumping from the drains also induces depletion in the moisture level of low lands. Paddy yields respond very well to the oxidized root zone environment. In addition such an environment lends itself excellently well for a third crop to thrive. This will mean a three crop pattern in low lands without additional irrigation. Let me hope government would take a holistic view and help our farmers.

****************

.

WATERLOGGED LANDS IN IRRIGATED AREAS IN ORISSA NEED REDRESSAL

2011-07-23T12:03:00.000+05:30

Under rain fed condition, the best lands are the valley lands. They have the best soil having been formed out of deposit of washings from the upper reaches. Percolated water eventually finds its way into these lands and therefore drought is never an issue with the fortunate farmers of valley lands. These lands retain optimal water saturation till end of December and therefore host the longest varieties of paddy. Yields are therefore quite high. Even with casual management, the farmer gets a yield of three tons of paddy per hectare; but the yield, under proper management, could be as high as five tons.
It is unfortunate that such precious natural assets, at many areas of Orissa, have degenerated into pits of misery. During my interaction on the subject with Mr. Banamali Nayak, a renowned agriculture engineer of the state, he was candid and told me, “Think of the psychology of the owners, when such lands are turned to Daldals, making it unfit for normal cultural operations. Yields have reduced to less than five quintals per hectare. This is a bright example of pushing an ill conceived technology. The concerned Department of the Government, that is the creator of this mess, hardly takes any responsibility. They seem to explain away the situation casually, stating that such a situation has arisen as a result of growing paddy in all types of land contrary to the design of the ayacut”. Reservoir technology is imported and some knowledgeable people think that it does not fit to our situation. It has been creating more problems than it is solving. One problem, entirely a creation of reservoir technology, is “Daldali”, which is the worst kind of water logging. The valley lands, which were the most productive lands under rain fed conditions, are made unfit for cultivation. The soil is converted to a kind of slurry, which looses its bearing capacity. Both man and animal sink about a meter or more, which renders normal cultural operations impossible.

In Hirakud command alone, extent of area affected by Daldali is about 10,000 ha. Other commands have their share too. “It is true that we would like to have irrigation so that productivity of all kinds of lands improves; we surely would never have desired that our best lands would be spoilt and no body would own responsibility for doing that!” Mr Nayak tells me. I agree.

In every irrigation system, substantial portion (40-60%) of the water released at the head regulator is lost during conveyance. The loss is unavoidable. The lost quantity is no doubt duly discounted to arrive at the net water available for irrigation. But the matter of concern is the ill-effect of the lost water on the irrigation command. This is yet to be effectively dealt with.
Oxygen contained in the locked up water is consumed by the flora including crops and eventually depletion of oxygen converts the locked layers to a reducing zone (one devoid of oxygen). The resulting bio-chemistry converts the soil into a daldal. Experiments for reclamation of these lands have been attempted by several scientists and it has been found that if a deep longitudinal drain is opened along the valley, the locked up soil water gets a chance to be renewed and the daldal is reclaimed into normal land.

Unfortunately open drains are damaged due to excessive runoff during rains and the treatment does not stay long. Tile drains and vertical drains are alternatives but expensive. Our irrigation engineers should not be disinclined to integrate them into normal management practice. If one perceives Government and people as two antagonistic entities such that each minds its own business then all developmental expenditure would appear uneconomic to the Government. Most of our farmers being small and marginal they would be unable to pay even the minimum amount of financial contribution in the daldali rejuvenation projects as their share. Alternatively, if the Government’s perception accepts that any government expenditure that enables people to produce more is the business of Government then the public expenditure could appear economically viable. In Orissa one of the major constraint on exploitation of ground water for irrigation had been the rigidity and myopic government’s thinking that drawing the electric line and installing the step-down transformer needed to be paid for by the farmer. The right approach should have been to view the cost of additional food grain the availability of water to the farmer would have ensured. Many states adopted such approach and flourished. We merely kept looking and blaming our poverty. There is therefore a case for the government bearing the total expenditure in worthwhile projects. Removal of water logging in irrigation commands should be one such activity.

In order to remove “daldal” we need simply to facilitate renewal of the soil water in a sustainable manner. Large number of ponds and dug wells at appropriate locations so as to facilitate pumping either to the dry canals or to the uplands will set up the needed hydraulic gradient for renewal of soil water. Pumping will pay for itself as it will promote additional cropping. Orissa commands are connoted by shallow disintegrated zones which get saturated when canals start operating. The percolated water (around 65% of the release) divides into two parts. 25% of it flows in surface drains and 40% flows out in subsurface layers. This water has to be pumped up and put to use. Deep tube wells are unsuitable because we do not have deep aquifers. There has to be surface pumping directly from drains, from large diameter dug wells sunk along the valley lands. Shallow tube wells maybe suitable in coastal commands. Tile drains may be laid in between and connected to the sunken pond/dugwells to facilitate renewal process.

We should not be averse to installation of public lift points within the command area of irrigation projects. That it would contribute to enhancing productivity should not be lost sight of. Even the advanced state like Haryana have water logging problem because their flow system is no more efficient. The difference is they have been able to find out solutions to their problem, where as we seem to have been bugged down under distorted perceptions. Haryana has solved this problem by promoting “conjunctive use” of water. They have used tube wells as a means of lifting water. There are both public and private tube wells. The public tube wells pump water back into the canals to augment tail end shortage where as private tube wells are encouraged for augmenting supply within individual holdings. Both help keep the water table low enough to permit meaningful agriculture.

Water logging in the command area of our irrigation projects has caused a lot of misery far too long. We must give the affected farmers the appropriate environment to produce more. There is need for a time-bound programme.

******************

POLICE MUST FOCUS ON SAVING LIFE, DIGNITY AND PROPERTY OF CITIZENS

2011-07-15T07:50:00.002+05:30

She brought in happiness and excitement and walked into our house. My wife named her Chitra. All of us liked the name. She jelled well with the cows and calves we had. The elderly cow accepted the new arrival with love and affection. She symbolized the wealth and splendour of the forests of Koraput region of Orissa where I used to go regularly on work during my tenure as Managing Director of the Tribal development Cooperative Corporation (TDCC) in seventies. She needed a home and I had volunteered to be of help. That is how the cute deer came to our house and grew in the warm ambience of love and affection. When I moved to the Planning & Coordination Department, she had grown bigger and stronger. In a winter morning, my father thought that Chitra should have a good exposure to the sun in the lawn of our house. He volunteered to keep a watch over Chitra and simultaneously glance through the morning newspapers. She was tied to a long rope. After sometime when father had had his reading, he looked for Chitra. She had disappeared. This threw the entire house into turmoil. I got a call while in office. By the time I realised the seriousness of the incident, it was late enough. I remembered Mr Somanath Misra, IPS, with whom I had worked years ago in Rourkela. Mr Misra served the police with distinction and retired from the position of DG, Police. His efficiency and sincerity had always impressed me. I contacted him over phone and sought help. “What is the time of occurrence”? He asked me, in typical police parlance. “About two hours back”, I fumbled out. “You know, the deer being fleet footed would have gone far by now”; he said. “I know; but you can do wonders”, I pleaded. “Let me see”, he assured me. After some time, a police officer with the police dog arrived in a vehicle. The dog sniffed and went up to the nearby BJB College field and then gave up. Around two thirty in the afternoon, a harassed police officer returned home in the complex of the Fire Station and asked for food quickly. “Search of a deer has completely exhausted me today; let me have some food quickly and again look for the animal”, he told his wife. “Some people have captured a deer and kept it in a house in the vicinity. They are making arrangement for a feast at night”, his daughter said. The police officer forgot his lunch and ran to the house. Chitra was back in our house soon thereafter. That is what the police can do and that is my expectations of the Orissa police. Shortly after her miraculous escape from certain killing, we became concerned about her safe upkeep and offered her to Nandan Kanan. She left us for the zoo leaving all of us with moistened eyes.
About a year back, a close friend narrated the harrowing experience his wife went through in an important locality of Bhubaneswar. She was walking back home in the morning after buying some vegetables and milk. A miscreant came from behind; overpowered her and snatched away her gold necklace. My friend was a senior officer in the Home Department. The couple met the top police official. The case would have ended as a “case true but no clue.” On hearing his tale of owe I recollected my experience years ago. One day, early in the morning, I noticed a young boy on the wall of the house of Mr Durga Madhav Misra, a former IPS officer and DG, CISF. The boy was confidently plucking flowers from a tree in the compound. His companion was waiting in a cycle. After a while he perhaps thought that he could also act noble and should not waste his time on a cycle. He picked up a stone, aimed at the street lamp in front of the bungalow of Mr Misra and in a moment, the stone smashed the electric bulb. That was the time I almost reached the spot and shouted at the boys. They looked at me and the hit-man greeted me with a mouthful of choicest filthy language with a menacing gesture. I would have been more angry that morning had I understood the meaning of even half of the slangs he uttered. They left and I continued my walk. I again met them after ten minutes or so. On seeing me, the linguist of the two resumed his abuse. I kept my cool and walked away. I informed the police about this incident. The next morning I had had no ugly incident while I had my walk. Around ten in the morning, the police Inspector came to our house and requested me to see about a dozen young boys the police, in plain clothes, had picked up from the locality in the morning. The boys had been brought to our house and I recognized the linguist. I left for office thereafter. In the evening, an elderly person came to our house and pleaded that his son should be let off. I came to know that his son was studying in a college. That piece of information was more shocking. The swiftness with which the police had apprehended the miscreant did impress me. This is my expectation from the Orissa Police. Sadly, however, things are deteriorating.
Capital city of Orissa has been witnessing cases of snatching of huge sums of money in broad light in busy city streets; trauma of snatching of gold ornaments from persons of unsuspecting ladies has been troubling hundreds of households. Theft of bicycles has become so common that people feel that police is reluctant to register such cases. Many have personal experience of mobile phones being stolen. Gruesome murders are on the increase. Cases of cheating over land are many. The other day my laptop computer was stolen from my bedroom through the window; the out house of my compound got ransacked by thieves who made entry by cutting lock after lock and they took away cash of the occupier in his absence. After this incident was reported to the police, police came in promptly. I had expected higher professionalism in handling of the case. I checked up the crime statistics from the published reports of the National Crime Bureau to see where our state stands. The latest figures relate to 2009 which states that Orissa is among the four worst states so far as the value of property stolen is concerned. Our state stood below Maharastra, Delhi and Kerala. In respect of percentage of recovery in property offences, our state is among the four worst performing states. We are below Nagaland, Delhi and Goa. Percentage of recovery in our case is just eight percent.
Public confidence of the police does not necessarily improve by seeing swanky police office building or moving police vehicles. The confidence level is linked with the professionalism of the police. Professionalism becomes a casualty with political patronage and protection. I remember the suggestion of Mr Somanath Misra, the then Superintendent of Police years ago in Rourkela. “In IAS”, he had told me, “you handle activities and affairs of different sectors. You should advise concerned people to appreciate that the state police should be made focussed only on crimes dealt with in the Indian Penal Code(IPC). The energy of the state police should not get dissipated by associating it with activities of other Departments”. Today I realise how far sighted he was. Citizens today are witnessing freedom of criminals who are striking at places and time of their choosing. In some case the complainants are being made to run from pillar to post on wrangling over jurisdiction. There seems to be severe shortcomings in detection as well as prevention of crimes. Police is yet to demonstrate that it is acting professionally as is the case in a modern civilized society.
*************************************

SOCIETY LOOKS ON WHILE GOD IS DENIED FOOD AND DEVOTEES GO HUNGRY

2011-07-08T10:48:00.000+05:30

“Why do I visit a temple?” I very often ask myself. “Do I show up before my Lord only after taking off my mask which I wear day in and day out? Do I prefer an eyeball to eyeball contact with the Deity by positioning myself in a posture of confrontation?” These are just a few thoughts out of many that cross my mind. During my last visit to the great temple at Puri and I chose to watch the playful hide and seek of my Lord by positioning myself behind the pedestal of the Garuda and recollected my days of childhood and the visits with my pious grandfather who would tell me many interesting things about the temple. One of those related to the finger marks of Chaitanya Dev on the wall behind the pedestal of the Garuda. Chaitanya was, I was told, was standing behind the pillar with great eagerness to have a glimpse of the Lord, his heart pounding with aroused expectations. Suddenly he had a glimpse of the Lord and was so ecstatic that he lost control of himself and his hand sought support of the nearby wall. The ecstatic force was strong and warm enough to leave the finger impression deep on the rock of the wall. I would have touched those marks a number of times in my childhood. During the recent visit I found men, women and children seeking those marks of faith on the wall. The temple truly speaking is the place where my faith gets rekindled and my awareness about my being nothing beyond a transient spec in the universe becomes stronger. That is the place for gaining strength through surrender.
World over, faith and love for charity have been inseparable in different religions. In case of Hindus there has been no exception either. Depth and extent of charity among Hindus have been demonstrated in the massive treasures of Sree Padmanabhaswamy Temple, one of the most famous Lord Vishnu Temples in Thiruvananthapuram. Lord Vishnu is enshrined there in the Anananthasayanam posture (in eternal sleep of yognidra), lying on Sri Anantha, the hooded snake. According to traditions, Sree Padmanabhaswamy Kshetram is believed to have been worshipped by Chandra (Moon God) and Lord Indra (the head of the Devas). The idol is made up of 12008 salagrams. Followers believe that the Lord has personally come in disguise and had saved many times the Travancore Kingdom from the clutches of enemies. Similar treasures in Somanath Temple had prompted invaders to plunder the temple many times. Many believe that the Temple of Lord Jagannath could have been equally resplendent with treasure had there been no invasion in the past and growing mismanagement. Materialistically speaking, the Temple at Puri has been the major driving force of the city’s economy; it has enriched some families. The temple sadly has not been the major beneficiary of the charity of the devotees.
The temple and its presiding deities are an integral part of the Oriya psyche. The origin of the worship as per legend was the devotion of the savara king Viswavasu to Lord Neela Madhav. Having heard about the deity, King Indradyumna sent Brahmin priest, Vidyapati, to locate the deity, worshipped secretly in a dense forest. Vidyapati tried his best but could not locate the place. He married Viswavasu's daughter Lalita. Viswavasu conceded to the repeated requests of his son-in-law and took him, blind folded, to a cave where Lord Neela Madhav was worshipped. Intelligent Vidyapati while going to the cave blindfolded, dropped mustard seeds secretly on the ground and seeds germinated after a few days. This led to the discovery of the cave. King Indradyumna proceeded on a pilgrimage to see and worship the Deity. But the deity had disappeared. The king was disappointed. The Deity was hidden in sand. The king was determined not to return without worship and observed fast unto death. His prayer was answered. Afterwards the king built a magnificent temple for Vishnu. Sri Narasimha Murti brought by Maharshi Narada was installed in the temple. During sleep, the king had a vision of Lord Jagannath. An astral voice directed him to receive a sacred log on the seashore and make idols out of it. Accordingly the king got the image of Lord Jagannath, Balabhadra, Subhadra and Chakra Sudarshan made out of the wood and installed them in the temple. The temple in its present form was completed by King Ananga Deva in 1174. Worship in the temple continued until 1558, when Odisha was attacked by the Afghan general Kalapahad. The Deities were taken into safe custody by devout sevayats ( servitors) who kept them in hiding. Subsequently, when Ramachandra Deb established an independent kingdom, the temple was consecrated and the deities reinstalled.
Most Oriyas are aware of this hoary heritage .The Temple and the presiding Deities are held in great awe and respect by the Hindus throughout the world. Antics like seeing the Lord face to face at the sanctum sanctorum; positioning oneself inside the temple precincts to watch the pahandi (ceremonial carrying) of the Deities to the chariots or sitting comfortably on a spongy chair on the top of a roof and watching the chariots rolling on the road below appear to be a cocktail of arrogance, immaturity and ignorance. Our society must severely condemn such aberrations. Many other aberrations are equally disturbing. One relates to the climbing the chariots and touching the Deities while the chariots with Deities wait on the road even at night. An acquaintance of mine, financially solvent enough to spend lavishly, had confided in me how he along with some of his equally enthusiastic friends regularly drive down to Puri from Bhubaneswar around midnight after the Rath Yatra (chariot festival) and see the Deities on the chariots near the Gundicha Temple by climbing the chariots. Many embrace the Deities. I find no trace of faith in such acts of bravado. I only see crash commercialisation and huge risk to the Deities. We must put an immediate stoppage to such acts of hooliganism.
Rath Yatra, for millions, is the symbol of the quest of the Lord for His devotees. This is the occasion when God seeks His beloved; like a crawling hungry crying infant seeking its mother. The occasion has been attracting devotees in millions from distant and near places for ages so that they have a glimpse of the Lord. The festival is symbolic of an egalitarian society where the King also does the royal duty by serving the Lord. He sweeps the floor of the chariots in great devotion and humility. Why do then some people on the chariots position themselves in such a manner that the devotees find it difficult to have a glimpse of the Lord? The chariots stop at the grave of devotee Salabeg, himself a Muslim, and the Lord pays tribute to the great devotee. We seem to have lost sight of the significance of the great tradition. Millions of devotees fast till the Lord have His food. This year a situation arose when the servitors of the Lord did not perform their duty and the Lord had had no food while the Deities were on their chariots. Thousands of devotees who looked forward to Mahaprasad could not get it as there was no feeding of the Lord. Those who decided not to perform the rituals of the Lord cannot be said to be serving the Lord. The incident was not the sole instance of highhandedness. There have been precedents. Our society and government have been exhibiting lamentable inaction to stem the rot.
That such a painful happening took place while our Lords were on their annual sojourn to be with the devotees perhaps was a part of Divine design to trigger the wake up call to our society and the government that are enjoying a stupor. We have to seriously initiate reforms that would necessitate a critical visit to the existing practices and legal status. We should be guided by the historic state actions that had made possible accession of hundreds of princely states to the Union of India and the abolition of privy-purse of the ex-rulers of erstwhile princely states. We should think whether the rights of servitors should be hereditary or be based on suitability and professional qualifications. We have to decide whether the present practice of building chariots in wood every year should continue or we should make our chariots that would be changed only during Nabakalevar when the Deities get the new outer wooden frame. We must legally ban climbing the chariots by unauthorised persons as such action, apart from being ethically obnoxious and offensive is fraught with serious security risk.
Restoring the glory of our Lord has become an immediate necessity. We must not succumb to the arm twisting tactics of the vested interest. Our Lords have been kept in hostage far too long.
*******************

POSCO PROJECTSHOULD MOVE BEYOND HUMPS AND HICCUPS

2011-07-02T05:20:00.000+05:30

While visiting places and meeting people concerned with the Energy and Health sectors in UK, while I was the Finance Secretary, I had a discussion with a gentleman in Newcastle on Tyne who talked to me on some aspects of electricity distribution management. At the end of our talk he indicated that he had an appointment with labour union on some demands. “Have you decided to concede to their demands”? I asked. He would agree, he said, to some which were reasonable; “but only after the labour meets my demands that would bring in more gain to my company than what I would give them today”. I appreciated the approach. On many occasions, in the government, officials tend either to be unnecessarily obstructive or to concede without any quid pro quo. In handling the proposal of the POSCO for the twelve million ton steel project, the state government should have been exhibiting better professionalism. Consistent mishandling has kept the proposal hanging for six years. I however strongly feel that we should have the Project despite vested interest working overtime to thwart it. The Project would bring in new technology; make use of iron ore fines; lead to new high-ways; railway lines and new port. The project would, I am sure, set benchmarks on productivity both in steel making and running of a port. Indian economy stands to gain. There are, however, a few areas of concern which should be satisfactorily sorted out. While renewing the MoU, I would hope the state government addresses the areas of concern adequately.
Many people, however, are critical about the project. For example, a friend of mine, a reputed Engineer, sees little economic rationale for the Project which, according to him, will only spell disaster to our state and people. Our economic pundits, he regrets, have been overlooking the losses to the state and the serious impact on ecology/environment on account of granting mining leases to POSCO. Today POSCO is buying iron ore and coal from international markets at 170 to 180 dollars per ton (and the cost is rising) for its Plant in Korea ; whereas, by granting mining leases for iron ore and coal, POSCO will get iron Ore and coal at its proposed plant in Paradip at a mere 20 dollars a ton. POSCO will use, almost for free, our land, our water and air and produce semi finished steel in the forms of slabs, plates and coils and export the same to Korea for producing downstream high value steel items, dumping mounds of slag and ash to the tune of 12 to 15 million tons per annum, year after year. Has any one visualized, he wonders, the far reaching consequences of such massive solid waste in sensitive and bio-diversity rich pristine Mahanadi delta? POSCO for its Korean Plant of 18 million tons per annum employs about 7000 persons. The proposed 12 million ton Plant near Paradip, using latest Finex technology is not expected to have more than 5000 direct employees including Korean technicians. Employment share for Odisha may not exceed even 2000. As the semi finished steel would be exported to Korea through their captive Port, there will be very little development of down stream industries. Some intellectuals are going gaga over the FDI of 12 billion dollars, forgetting the fact that POSCO Steel Plant with latest steel making technology will warrant almost 100 % import of plant & equipment which will amount almost to 8 to 9 billion dollars. Thus the lion's share of investment will go to other countries including Korea which will manufacture the plant and equipment for the modern plant. Even for the construction of the plant, the technological structures (which may account for one billion dollars) will be supplied by Korean Companies. Thus almost 75% of the investment will be spent outside India, benefitting other countries including Korea. Further, as the promoters are expected to use modern construction technology with thrust on mechanization and automation, the labour content in site construction will be minimal and the average total labour strength at the site is not likely to exceed 2000 comprising mostly Korean technicians. Only some unskilled labour may be hired from Odisha. Therefore the POSCO project, according to him, is a big time economic disaster for our people and the state. He feels that any wise and patriotic person will not buy the POSCO proposal in its present form.
Another friend writes to me from USA and pleads that POSCO should establish in Orissa something akin to POSTECH. POSTECH, promoted by POSCO, is now one of the world’s leading science and technology research oriented universities. Its 3000 students; 800 researchers and 230 faculty members represent the brightest minds, studying and researching on a large 165 hectare campus located on the southeastern coast of South Korea. POSTECH hosts many research centres including the country’s largest biotechnology centre; the National Centre for Nano materials & Technology and South Korea’s only intelligent robot research centre. It has the world’s only Graduate Institute of Ferrous Technology. Orissa, he feels, should have a clone of POSTECH, maybe as a research institute. Posco should run it for ten years and develop it to the scale of 60-75 faculty members. After ten years, we should push Government of India to take it over.
Many critics seem to overlook the fact that a few leading steel makers of the country also have captive iron ore mines but they feel uncomfortable if Posco would have such an asset. India’s law also permits producers of steel to own coal mines; but they would be uncomfortable if Posco would have one. I would feel that the Posco should have iron ore and coal assets. However, no part of the produced iron ore should be exported even for use in Posco’s offshore facilities. Government should ensure this. There are many applicants for our free iron ore reserves. Allocation of any free asset to Posco has to be within the legal frame-work and such a thing to happen may take long time. The most pragmatic way of implementing the project soon is by developing a good mine of the Orissa Mining Corporation jointly with Posco. This mine, maybe Daitari or Gandhamardan, could be developed as a separate company with share-holding by OMC and POSCO on 51:49 ratio; but the cost of development should be borne by POSCO. Posco should buy the rawmaterial from this company at a negotiated rate.
The other issue relates to land. Government must ensure that the affected persons get handsome amount of money for the assets they part with for the Project. Given the size of investment of the Project, even if the price of land is fixed at fifty lakh rupees per acre, one thousand acres of private land would cost only five hundred crore of rupees which is a small fraction of the project cost. How can we think of any meaningful industrialisation of the country by making our own people disgruntled? A liberal approach need not be viewed as one that would scare away new industries; rather with this approach, local population would view industrialisation as a harbinger of equity and prosperity. It is indeed sad if government decided to sell government land to Posco at the rate of only twenty five thousand rupees per acre. In case such a decision has been taken although government policy was for a higher rate, then the matter should have been placed before the Cabinet. In case there is no Cabinet approval, persons who made it possible should be prosecuted for causing great financial loss to the government.
The other area relates to the public perception of the project. By now, Posco has been in Orissa for six years. This is a long enough period for Posco to have grounded a clone of POSTECH in Orissa. Such an initiative would have drawn the Company much closer to the people of the state. Investors should appreciate that CSR is much more than organizing an Eye camp. It is much more than a sponsored trip for media men and government officials to foreign lands. CSR is about an abiding love and respect for the people and the area where the project operates. Such an initiative is yet to be seen in case of Posco. It is never too late to start.

***************************

MANAGEMENT OF OUR RAIN WATER

2011-06-25T10:04:00.000+05:30

While in Finance Department I once saw an interesting official document of the Agriculture sector that spoke about the mission of the state to double the agriculture production in five years. This bluff was too brazen to be swallowed. However, keeping the need for propriety and civility in view and keeping in mind the primary duty of a civil servant to translate knowledge to action, I had pointed out the fallacy of such a statement. No one disputes the urgent need for having the right strategy for increasing the agricultural production and productivity. A small dedicated group of Farm technologists of the state under the able leadership of the erudite, Banamali Naik, has been working in this field with great determination. BB Consultants promoted by him in Bhubaneswar has been spreading the idea of rain water management and implementing a few projects. Mr Naik and his able colleague, Bimal, shared their ideas with me and I thought it relevant to share it with the readers.
Over the past several generations, our farmers have developed the infrastructure to do Kharif cropping over 65 lakh hectares of land. One cannot say that our people who performed this feat, apparently without any Government help, are either a lazy lot or are devoid of any wisdom. The socio economic and political changes after independence have somehow taken a toll on their initiative and have made them unnecessarily dependant on sources beyond their control. It is time to reignite in our people the dwindling initiative and empower them to manage the rain that falls in their land.
Bulk of the rain comes during monsoon months once a year. It has therefore to be stored so that it can be used during the dry months. The usual practice is to store water in surface reservoirs. If we talk in the context of Orissa, which is located in the high rainfall zone, the aggregate volume of the created storage capacity cannot hold more than 10% of the total volume of precipitation received in the state. Thus, 90% of the rainfall is being lost in various ways. Through surface run-off we lose about 40%; bulk of it while it is still raining. Not only does it take away water from the place of use, it also causes flood downstream. We should minimize it by enhancing infiltration into the soil, where it falls, so that drought is prevented in the uplands of inland areas and minimise the incidence of flood in the coastal plains. We lose about 37% through unproductive evaporation.
The soil mass, a porous medium, given adequate time, can absorb the entire precipitation. The aggregate volume of porosity is 2-3 times the volume of precipitation received in a village. Thus storage space provided by Nature is more than adequate. The limiting factor is the time for in-filtering the desired quantum. Under the current situation, it hardly stays for about 30 minutes. Not much can happen within such a short time because the rate of infiltration is only 75mm per hour. Thus if we want 750mm, which the volumetric water requirement for a 200% intensive is cropping, the quantity of runoff required to be in filtered must stay within the village for at least 10 hours.
Time has come to make use of our natural endowment and traditional wisdom to meet the challenge. The inland areas of Orissa are hilly and had rich forest cover. Forests are a natural in-filtering agent of rainfall. They facilitated storage of rain water and its slow release throughout the year. Every village in the inland areas had forest around it and enjoyed the benefit of spring flow from the forests. Through traditional wisdom, the entire area of the village was used to grow different kinds of crops including rice and sugarcane. Villagers grew a variety of pulses and raised flourishing orchards. The coastal plains thereby received only moderated floods where the soil was regularly enriched with silt deposits. Vanishing forests have left huge land mass behind, which is still in the same shape as it was when forest cover was there. These can be reshaped to create an alternative flow path, which will be long enough to touch all uplands and flow long enough to slow down the speed of water so as to gain the needed 10 hours to in-filter at least 750mm of rainfall.
The finest particles of soil are clay. When they come in contact with water they have the property of adhering to each other and form a crumbly structure. If one visualizes each elementary particle as a tiny sphere, there will be some space between them when they touch each other. These spaces are called micro pores. When water enters into them it gets so firmly held that even gravity cannot remove it. It can only be extracted by plant roots. Thus once in-filtered, it stays in the micro pores for direct use of plant life. The beauty of this design is that each of these crumbs now forms a larger sphere and can attach to each other as such leaving larger gaps between them. These gaps are called macro pores. Water can be stored in them as well. Difference is that it can be moved by gravity in the direction of the hydraulic gradient. Normally, nature fixes this direction in a given situation. Due to this property, water can move from an upper location to a lower one. If one finds the direction undesirable it can be changed. Therefore human intervention is needed only to in-filter more and more water into the soil.
The sub soil water moves almost at the same rate at which the rain water in-filters into the soil i.e.75mm per hour. This speed is 30000 times slower than the average speed of surface runoff. At this slow speed water will travel only 1.8 meters per day, which means it will remain inside the village for 556 days. It means once in filtered, it will take more than a year to leave the village. In other words the next year’s rain would have arrived before the last rain water would have drained out. At present the rainwater stays for about 30 minutes within a village. This should be extended to at least 10 hours to achieve retention of 750mm. To achieve this, the length of travel should be increased and gradient causing flow decreased. This can be done by retaining rainwater inside the plots as long as possible and, when necessary, spilling to the side plot instead of plot below. All this can be achieved as has been established from studies made inside the state. There will be no out flow from the village during normal showers. Run off / out flow during prolonged showers will be so much regulated that there will be no scouring of drainage channels. However, if necessary, underground cut-off/diaphragm wall shall be provided at the outfall point of draining line to present loss of groundwater from the village/watershed.
The technique required to ensure this, does not disturb the present land configuration of the village and, therefore, eliminates the problem of land acquisition / rehabilitation. The whole village becomes drought free and the water table rises to such an extent that Rabi crop become possible. Low lands become fit for summer paddy. The entire aquifer below becomes saturated and dilutes the ground contamination to such an extent that ware becomes fit for drinking. All the ponds and tanks in the village remain full throughout the year. After the rain stops, the stored water is released slowly to the drains as off season flow thus making available water to villages in lower reaches. This creates enough employment inside the village thus reducing the menace of seasonal migration. This soil engineering work can be taken up over all the lands of each village. There is no masonry work involved. This programme can easily be undertaken through the national employment guarantee programme ( MGNREGS).
When mal governance has brought disrepute to the state that funds for employment guarantee are being misappropriated, I would urge our youth to create awareness throughout the state that a good portion of the money be used for the management of our rain water the way as shown by Banamali Naik and his team.

******************

SHOULD WE ONLY LOOK ON AND DO NOTHING?

2011-06-18T07:28:00.000+05:30

"The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing." said Albert Einstein. Swami Ramdev did precisely what he thought he should do. Anna Hazare is also on the same path. A man from Bihar had come all the way on a bicycle from Bihar to Ramlila Maidan in Delhi to join the gathering and lend support to Swami Ramdev. He was not allowed to take his bicycle into the venue. He still preferred to join the mass fasting and continued his satyagraha while cycling in the vicinity. That symbolized the determination of many people who felt strongly against the prevailing corruption and also wanted the tons of illegal money stashed in foreign Banks to be brought to the country to be utilized for the development of the country. I fail to appreciate the logic advanced by the some politicians that a few self appointed leaders of some groups from civil society cannot usurp the function of the elected government. Nor am I able to understand the logic of some intellectuals who say that bringing illegal money stashed abroad cannot be done quickly. Country attained independence in 1947 and the fact that our elected governments have failed to show any progress report on this speaks volumes about the lack of sincerity of the elected governments.

Pranab Mukherjee’s clarification that the government has nothing to hide does not convince me. Finance Minister tried to make us understand the issue by saying that no information can be made available unless there is a legal framework. Government has names of Indian account holders in Liechtenstein's LGT Bank and information given by German banks, but the Finance Minister said the government cannot reveal the names right now because of the secrecy clause. Names of Indian account holders have been given to the Supreme Court in sealed cover. Many people like Ravi Shankar Prasad of the BJP would feel that the clarifications are vague and evasive. Many of us take note that the USA and certain other European countries have been able to get information from the Swiss authorities on their nationals holding accounts in Swiss banks. The total amount of black money deposited in foreign banks by Indians is unknown, but one estimate by R Vaidyanathan, a Professor of Finance, estimated the total at over Rs 7,280,000 Crores (USD $1.4 trillion or 1400 billion US Dollars). Who have plundered India the most? Are they the invaders or the imperialists or some ofthe Indians?

Both Swami Ramdev and Anna Hazare received great public support in their crusade against black money. Congress Party pressed the panic button. Government’s ruthless action on the peaceful Satyagrahis at the Ramlila ground in Delhi at dead of night revealed the extent of panic of the government. Overnight, the Swami was condemned as a villain. The way invectives were showered on the Swami revealed the decadence of a great political party. A great son of the country who taught the countrymen the science of Yoga and brought benefit to millions of Indian households was condemned to be a front for the RSS. The affable Anna Hazare and his team realized that the response of the government towards the Lok Pal issue was lacking warmth. Annaji received the title of unelected tyrant. He has also been accused of being a front for the RSS. Government by its action and conduct has convinced millions of Indians that a proactive civil society needs to be crushed through brute force. Managers of this strategy also feel that self-esteem of the leaders of the vocal civil society should be damaged through malicious propaganda against them.
But the question still remains about whether the government will ever retrieve the black money that is kept in foreign banks and whether the bizarre depredation of the corrupt would continue for ever in this land of ours where Satyameva Jayate (Truth alone triumphs) remains the national motto of India and is inscribed at the base of the national emblem.
I met a well educated elderly person the other day in the neighbouring cricket club where he, like me, was waiting to pick up his grand son after the game was over. We talked for a while and I conveyed my anxiety over the recent developments in the country and the rough weather Swami Ramdev and Anna Hazare are facing. He looked unaffected. For him corruption and crimes remained an integral part of the society. Maybe, over time, he said, these have grown in magnitude and are now getting wider publicity through a hyper active media. He recollected the days when he stared his business about thirty years ago and strived hard to sell an earth moving equipment of moderate value to a public sector company. He met the Minister and the top official a number of times. He had had no success. He was getting desperate. One day he met a middle ranked official of the company and struck a deal to pay him one percent of the value of the equipment. He got he order. The equipment was delivered and he went with Rs 7000/- to the official. The officer greeted him with a smile; offered him tea and they talked sweet for a while. My friend handed him the envelope containing one percent of the value of the equipment. He received it and kept it. After the pleasant conversation, the officer handed him back the envelope with an advice that with this money he should buy a nice sari for his wife and a good dress for his son. “But the money is yours”, yelled my friend. “Yes”, the officer replied. “After I accepted the money, it became mine and I am doing with my money whatever I want. That is why I am asking you to buy the sari for my Bahu (younger brother’s wife) and your son”, he said. “Why are you embarrassing me like this”, my good friend pleaded. The officer tried to explain. “Our organisation did not need the equipment when you wanted to sell it. But I watched you spending hours with the Minister and others; running from pillar to post. Time passed, our activities increased and we needed the equipment. I called you because I realized that you were desperate to sell your first equipment. I do not need money to do my job. I come from a rich family and I get pleasure doing my job well”, the officer said. My friend therefore felt that society has good people too. He feels unperturbed at the monster of corruption and black money. I met yet another person. He is a man of great discipline. “What should we do in this hour of crisis”? I asked him. He smiled. I persisted on getting his response. “Are we perfect”, he asked me. “We should first reform ourselves and reform in the society would follow” he said. I was losing my cool. “But there are enough people in our society who are reformed and they have jumped into fire for a cause. Should we not do something soon” I pleaded. He remained unmoved. His priority was to reform our children.
This is the dilemma of India. Many of us merely look on, like the illustrious men in the court of Duryodhan while helpless Draupadi’s honour was getting violated.The wily and the vile have a field day due to the silence of the millions. We seem to have singularly failed to appreciate why even a noble bird like Jatayu fought against the mighty and vile Ravana and why even the humble squirrel preferred to contribute its labour to the construction of Ram setu to Lanka.
Should we look on if, say, a Prime Minister prefers to make the common man lose its sleep at dead of night so that the corrupt and mighty enjoy their sleep? Should we look on if, say, a Chief Minister wrecks the Constitution by handing over the entire executive responsibility to an extra constitutional entity that is responsible to none? Such disasters are possible if a nation prefers merely to look on.
**************************

DERAILMENT OF POWER REFORMS IN ORISSA

2011-06-11T08:54:00.001+05:30

The proof of the pudding is in the eating. A consumer likewise must feel that the power sector has been performing well. I for one curse myself very often when I find my house in the capital city of Odisha going without electricity for hours through intermittent interruptions almost for 200 days in a year. My computer stops working when I am in the middle of writing a piece and it disturbs my thinking process. I watch an interesting programme in television and the power goes off. At the sight of the clouds in the horizon, power goes off. Sometimes I fail to run my water pump to lift water to the overhead tank. Last summer we faced great difficulty in getting adequate water from the Public Health Department run town water supply scheme. The high duty motors of the PHD pump houses would not run due to low voltage. I spent money to get a bore-well in my compound. After suffering a power interruption for a few minutes, I would always make a phone call to the sub-station office. On most of my attempts I would receive a pre-recorded reply of the BSNL that the phone is out of reach. This has been the perception of the outcome of reforms for me. It is ironic that I, as the then Finance Secretary of Odisha, had been to Washington to be in the team to negotiate for and be one of the signatories of the World Bank Loan for the Power Sector Reforms.
The second unit of Ib Thermal Power Station was commissioned in 1996. Thereafter 4 (four) units of Indravati Hydro Project were synchronized with the state grid during 1999-2001. Odisha thereafter witnessed a power holiday. The Reforms got derailed when the government led by Naveen Patnaik failed to add new generating capacity in the state for years. It failed when the government could not appreciate that the Distribution Companies (DISCOMs) are just not functioning. We failed to make any headway in harnessing our hydel potential though the cost of hydel generation is low and the source renewable and environment-friendly.
Government preferred to bemoan that the distribution companies have been deprived of government subsidy. The latest official utterance on the subject one finds from the notification of the Department of Energy dated 21st October, 2010 on Capital Expenditure (CAPEX) Programme for the Distribution Companies of Orissa. It stated, interalia, that most of the electrical networks are now almost 45 years old and after reform and restructuring of electricity sector in 1996 Government subsidy has been withdrawn and no transitional support has been given to the sector. As a result there has been no infusion of funds to the distribution section leaving the distribution networks in a dilapidated condition.

Government took the decision to help the Distribution companies. The scheme envisages investment of Rs.2400 crores over the period of four financial years i.e. FY 2010-11 to FY 2013-14, out of which Government of Orissa will provide Rs.1,200 crores and DISCOMs will invest Rs.1,200 crores from their own source/ or through market borrowing. State Government support of Rs.1200 crores comprises grant of Rs.500 crores from Finance Commission, to be initially passed on as loan with 0% interest; Rs.166.67 crores of matching State share against Finance Commission grant as loan with 0% interest; Rs.366.66 crores as budgetary support in shape of soft loan with 4% interest and Rs 166.67 crore as loan to GRIDCO. Loan of Rs.666.67 crores bearing 0% interest may be considered for conversion into grant after full utilization of the loan for the specified purpose and achievement of loss reduction target of 3% per annum. Loss reduction of 1% leads to a saving of Rs50 crores.

I would view the decision of the state government as rewarding some one for sustained dereliction of duties. Over the years, the losses in the distribution sector do not show any substantial declining trend. The actual distribution losses for the three successive years up to 2008-09 for different DISCOMs indicate that in case of CESU overall distribution loss in 2006-07 was 43.52%; for 2007-08 it was 41.51% and 40% for 2008-09. For NESCO the losses were 33.22%; 31.17% and 34.57% respectively. The corresponding figures for SOUTHCO were 43.55%; 45.44% and 47.78% and for WESCO 36.36%; 36.13% and 33.55%. On Micro-analysis, it is observed that the performances of some distribution divisions in Orissa are very dismal. Many distribution divisions are not able to collect even 30% of the energy consumed.

Distribution loss is a controllable input of tariff. The Regulatory Commission had approved a loss reduction trajectory in its Business Plan Order for the control period 2004-05 to 2007-08. As per these principles, any loss incurred by DISCOMs beyond the level approved in Business Plan shall be borne by them. Therefore, the DISCOMs have been bearing the non-achieved part of the reduction of distribution loss. The quantum of unachievable loss eats into their approved amount of O&M, Return on Equity and investment, etc. As the revenue of DISCOMs is escrowed with GRIDCO, they have little left in their account after full due is paid to GRIDCO. The liquid cash crunch has made them helpless to arrest huge distribution loss which can be met only through investment in a number of technological fronts. As a result of poor or negligible maintenance, the snapping of old conductors, uprooting of poles and burning of transformers have become order of the day. This has led to plaguing of vast areas with frequent power interruption.

Distribution Loss at LT Level (in %)
(Based on Filing of Licensees)
01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09
NESCO 65.1 58.8 62.1 60.6 59.2 59.5 59.3 59.4
WESCO 63.3 58.6 63.4 65.0 65.5 65.0 65.3 65.6
SOUTHCO 46.7 45.9 50.2 47.8 49.6 52.4 54.9 57.1
CESU 54.5 49.6 46.4 47.4 49.7 53.2 53.8 52.0
ALL ORISSA 57.6 53.1 54.9 54.9 55.8 57.5 58.2 58.1

There has always been a clamor in different quarters for a better quality of electricity service. DISCOMs have completely failed in meeting the expectation of the consumers. The DISCOMs have to raise funds either from the consumers in shape of tariff hike or go to institutional lenders like PFC and REC or bankers for loan by mortgaging their distribution assets. Hypothecation of these assets is not possible unless GRIDCO cedes the first charge against the hypothecated assets. Even if the DISCOMs go for loan, this will come with a cost which will be eventually passed into the tariff.

Sometimes it is incomprehensible to accept a high figure of, say, 65% of LT loss arising due solely to technical reasons. Part of the loss appears to be euphemism for corruption. Indian system of corruption is too organized and entrenched to let a consumer enjoy electricity by not paying. If he is not paying officially to the DISCOM he surely is paying to some one else unofficially. DISCOMs certainly are not immune from this malady. Enforcement has been extremely poor. This reflects in poor detection of hooks and number of cases registered with police.

This analysis would indicate that the DISCOMs are afflicted with terminal illness; and not remediable ailment as the government would like us to believe. Government needs to realize that in the present state of civilization, electricity is an essential part of life and is to be accepted as a person’s entitlement. Management of such a resource cannot be made casually. Government rightly expects that in pursuance of National Electricity Policy and National Tariff Policy to provide power to all households by 2012, around 54 (Fifty Four) Lakhs households including 36 (Thirty Six) lakhs BPL households needs to be electrified and added to the existing consumer base of 31 lakhs . We whould therefore have an enlarged clientile who would need dependable and quality power. The DISCOMs are ill equipped to meet the challenge. Nor is the CAPEX going to usher in a new era.
I would most seriously plead for converting DISCOMs into fully government owned companies and government must run them well. A responsible government can ill afford total chaos in retail management of electricity.
**************

GROWING MARGINALISATION OF THE POOR

2011-06-04T11:17:00.001+05:30

I told a friend recently that in case he wanted to see the common man’s determination to live, he could spend a few hours, incognito, in the chamber of Dr Senapati, Oncologist in the Acharya Harihar Regional Cancer Centre at Cuttack. One would see how the young, the middle aged or the old, afflicted with the fearful disease, would patiently listen to the doctor; would wait for the prescription to be handed over to him and take leave of the doctor with gratitude and a smile. I had watched this scene one day for hours and never did I notice fear or anxiety in the face of any patient. Hope was writ large in each face. That was the message I received that day; the message that the Aam Admi wants to survive; he wants to surmount challenges howsoever daunting the task may be. It however looks strange that while the political system we are in draws its power from the people most of whom are poor; yet in the day to day life we all realise that the system is heavily tilted in favour of the richer class.

The other day, most of the important streets and markets of Bhubaneswar displayed fruits in good quantity. Fruits were in great demand for a very important occasion; Sabitri Brata, when the wife prays for the long life of the husband; she is on fast and breaks fast with some fruits. She worships Sabitri, the epitome of feminine strength, chastity and integrity. She puts on a new sari. Shops do brisk business. Prices reach dizzy heights. Behind such exuberance, however, there exists a zone of silence; where the poor lives. That is the zone where many families do not have the resources to buy a sari or the fruits. Such harsh reality showed itself just on the eve of the Sabitri Brata in the suburb of Bhubaneswar when the young wife of a carpenter took her life following the inability of her husband to buy her a sari for the occasion. Most likely the husband was finding his meagre income too inadequate even to service the debt of the family. The news was cruel enough to disturb one’s conscience. The picture of a young housewife hanging dead leaving behind a two year old crying child while the husband was away haunted me for quite some time; even while I joined the crowd in the filthy daily market of Bhubaneswar to buy a few things for my wife to observe the Brata the next day. Nor could I respond with adequate warmth to our daughter’s delight who called from Naperville (near Chicago) to let us know that for Sabitri Brata she was able to get six pieces of bangles for three dollars from a local shop. There was yet another gruesome death when an old couple, unable to bear the pangs of poverty, decided to end lives in Ganjam District. The man and wife consumed poison. They had left a written note stating that they had been deprived of essential facilities like a house under the Indira Awas Yojana and a ration card. One of them died and the other was taken to the hospital in a serious condition. Acute poverty and abject deprivation manifest in such tragic ways in our society where one witnesses excessive indulgence of the rich. Though the poor exhibits great determination to live, he suffers a life of great tribulations and many end their lives. Sometimes it looks as if the society has lost its sensitivity to the issues of deprivation and sufferings of fellow countrymen. It seems it has become insane and looks the other way when calamity of the type described here strikes poor families. Is it because we have lost the basic human trait to respect human life? Ours is the country where the maximum number of babies are born in a day—as many as seventy thousand, out of 353000 babies born in a day the world over. This profuse production perhaps generates a feeling of complacency and laxity and we tend to be indifferent and do not invest in our human resource the way we should.

Had Orissa been a separate country, it could have been in the list of thirty five most populous countries of the world. Countries like Canada, Romania, Australia, Netherlands, Malaysia, Sri Lanka and Venezuela have less population than Orissa. Let us have a close look at the annual personal consumption expenditure in Constant 2005 International Dollars ($) for three of these countries. In case of Canada, personal consumption was $15094 of which Health accounted for 575 dollars; Housing 5613 dollars; Food 2271 dollars; Clothing 823 dollars; Education 387 dollars and Transport 2886 dollars. For Australia, personal consumption was $14036; Food accounted for $2429; Health $724; Clothing $557; Housing $4240. For Netherlands, total personal consumption was$13282; Food accounted for $2299; Clothing $904; Health $474. In case of China, the total personal consumption was $2292 of which Health accounted for $159; Housing $440; Food $932; Clothing $63.
In case of India one gets details of the household expenditure from the survey made by the government from time to time. A sample of 31673 rural households and 18624 urban households spread over the entire country was surveyed in the Consumer Expenditure Survey of the 64th round of NSS, carried out in 2007-08. It revealed that the Average Monthly Per Capita Consumer Expenditure (MPCE) in 2007-08 was Rs.559 in rural Odisha and Rs.1438 in urban Odisha at 2007-08 prices. In rural household in Odisha, the per capita expenditure on pan, tobacco and intoxicant comes to Rs 13.48 and on beverage etc Rs37.80 making a total of Rs51.28—much more than the man spends on milk and milk products which account for only Rs10.50. In urban Odisha, expenditure on pan, tobacco, intoxicants and beverages etc comes to Rs 142.17 with beverages etc accounting for Rs125.97. A person on the other hand spends only Rs57.34 on milk and milk products. I would not exactly know what the term beverages etc means which is placed under Food items. I would however rule out the item being a substitute for health drink like chocolate milk or Chyavanpras. My guess is that it could be liquor or beer or both. On cereals, a person in rural Odisha spent Rs136.57 out of his total monthly expenditure of Rs558.95. He spent Rs37.29 on clothing; and Rs 11.87 on education. On an average, a person in rural Odisha consumed 13.13 kg rice in a month. If he had a ration card and did receive the cheap rice, then he would have spent Rs 26.26 on rice. If he had no ration card as the old man in Ganjam who consumed poison in desperation, he would have spent around Rs 150 to get the rice and his wife would also have needed a similar amount. Since they could have not afforded this expenditure they preferred to die. This is not an ideal story in a welfare state.

Analysis of the per capita expenditure indicates a depressing scenario. The rich human resource of the state needs to be guided to improve the quality of the life. In Canada the number of babies born per day is around 1000 where as in Odisha around 2300 babies are born per day. Sadly Odisha continues to be home of a large number of poor people. We must have a more meaningful approach to governance to prevent recurrence of traumatic manifestation of deprivation. It is certainly possible for a Block Development Officer to visit each household in a Block. He needs to do that and he must spend quality time with each family. If a householder does not have a ration card, the BDO should have the authority to issue one on the spot. The old couple who preferred poison could have had a meaningful life with a ration card. The countries I have referred to have smaller populations than ours. Yet the countries have progressed well. We also can, provided we face the prevailing problems with far sight and dedication. We should not promote further marginalisation of the poor. It would be an act of cruelty to stifle his potential through mal governance.

BELIEVERS IN BIJU LEGACY MAY WORK TOWARDS ANOTHER REGIONAL PARTY

2011-05-26T10:05:00.002+05:30

What does Biju legacy connote to a common man of our state? To me it is about a tall personality stoically walking the Agnipath—a path aflame. No one, I am pretty sure, would ever associate Biju legacy with something less thrilling. Biju legacy is about a child playing with lion cubs like young Bharat; Biju legacy is never about a puppet dancing to the tune of a puppeteer. Biju legacy is about a person possessed with a mission; about a person volunteering to jump into the sea like Dharmapada, for a cause. It is about renunciation rather than about contriving to stick to creature-comforts. Biju legacy is about indomitability of human spirit; not cowardice. It is about transcending defeats in the ballot boxes to walk into the hearts of millions. It is about creating tranquillity out of turbulence and creating wealth for the motherland rather than stealing or giving away its wealth. It is about swimming against the current. It is about walking, if necessary, alone, with head held high. The legacy is about spending years in exile like Lord Rama; not about indulgence in power. It stands for life in one’s years; not the years in one’s life.
DNA structure of such unique legacies has always been far too complex to adopt a simple linear succession channel. The legacy manifests sometimes in unexpected places. Gandhi legacy influenced Martin Luther King. Biju legacy may influence students, aspiring entrepreneurs or politicians. Mere claim that “I am the bearer of the legacy” would therefore not be correct unless such claim is consistently demonstrated by the actions of the claimant. Many lovers of the state would look forward to application of the Biju legacy in the political arena for the state’s overall development.
The outcome of recent elections in West Bengal; Tamilnadu; Kerala and Assam and the result of bye-elections in Andhra Pradesh would very likely lead to certain realignments of political forces in the country. The present composition of the UPA may change. We may see new Ministers in the Central Council of Ministers. Going by the continuing uncertainty about the new President of the Orissa Pradesh Congress Committee, one gets a feeling that this could be due to serious thinking at some quarters to fine tune the Pradesh Congress for a position akin to the stature the Party enjoys in, say, Bihar, Uttar Pradesh and Tamilnadu. The national Party could consider it more relevant and expedient to seek alliance with a major political force of the region and seek its support in forming a stable Congress led government at the Centre in future. The trouble of rebuilding the Party in the state may therefore be considered a secondary priority. The sudden silence of the articulate Jagdish Tytler and slowing down of the frequency of his visits to the state, point to such a possibility. I would therefore not rule out the possibility of the Biju Janata Dal joining the UPA in the next reconstituted Central Cabinet. There could be direction to the state organisation of the Party to dismantle its present adversarial posture towards the BJD and assume a collaborative posture. That may require a different mindset of the Pradesh Congress leadership and this could explain the delay in selecting a new PCC Chief.
Such a development may or may not materialise. In either eventuality, however, there seems to be a necessity for realignment of the political forces in Odisha. Socio-political forces that view the growing corruption with great concern would like to come together. Forces that genuinely feel committed to Biju legacy would like to come together. Forces those are wary of the style of working of the leadership in the functioning of various Political Parties may like to come closer. Forces which are convinced that the overall interest of the various regions of the state can be served better by a new regional Party could come together. Such realignment could cut across political Parties.
At the present juncture, the state seems to be in dire need for upholding the Biju legacy and make it the sheet-anchor to rebuild the state’s shaky socio-economic fundamentals which have suffered serious onslaughts of mal governance. Maybe, the state would witness a new political formation in the shape of BIJU CONGRESS that would truly strive to materialise the dreams of the legendary leader. I wish to share an experience of mine with the youth of the state many of whom would like to know what he was like and how his thoughts were. While I was Chairman of Paradip Port Trust, Biju Patnaik, the Chief Minister, had come to Paradip to have a discussion with the POSCO team from South Korea for setting up of a steel plant at Paradip. Chief Minister had a long and elaborate discussion almost throughout the day with the team. I was present and so was Arvind Pande from the Steel Authority of India. Chief Minister was staying in the Jawahar Guest House on the shore where waves keep colliding against the sea wall day and night. He was in a suit on the first floor and had advised the guest-house staff to let him be alone in the evening. Late in the evening, I, however, arrived at the Guest House and went to the first floor to meet him. The spacious verandah was without light and the Chief Minister, on a chair, looked totally immersed in deep thoughts. Perhaps he was playing with the high tide of his thoughts in solitude. The calm sea in the horizon; the turbulent sea at the shore, the determined collisions of the waves against the sea-wall, the millions of emerging water particles on one side and a silent, thoughtful Biju Patnaik in a chair in a dark verandah with his far reaching thoughts created a unique and unforgettable environment. He was happy to see me. We talked for a while and I took leave. I had no clue about his thoughts that evening when there was nothing between him and the roaring sea. Maybe he was conscious that after a long journey, the sea dissipates all its energy by hitting against the sea-wall and converts its life-force into tiny molecules of water to spread all over; like a brave soldier who, after many battles, overcoming innumerable hurdles, converts himself finally into millions of tiny atoms containing the spark of his indomitable spirit, to arouse and motivate posterity.
The emerging void in the political universe has been too big to go unnoticed. An appropriate political formation to respond to the requirement of the youth of the present century needs seems to be an urgent necessity. The new formation needs to have the intellectual strength for understanding the challenges Odisha faces and the leadership should have the ability to deliver. Such a new formation would not come on its own. It needs to be created. It however requires tall people who would prefer to walk the Agnipath that Biju Patnaik walked. I would refuse to believe that our state does not have adequate number of such people. I would remind the readers of the determination of thousands of Oriyas who perform during Jhamu Yatra every year.
***********************

GOVERNMENT CAN CONNECT BETTER WITH PEOPLE THROUGH RIGHT TO INFORMATION ACT

2011-05-20T08:05:00.000+05:30

Every public authority is required under the Right to Information Act, 2005, to publish particulars of recipients of concessions, permits or authorizations granted by it. The Act also requires the public authority to publish all relevant facts while formulating important policies or announcing decisions which affect public. It also states that it shall be a constant endeavour of every public authority to take steps to provide as much information suo motu to the public at regular intervals through various means of communications, including internet, so that public have minimum resort to the use of the Act to obtain information. It looks rather sad that government of our state has not made even reasonable use of this statutory requirement. Most of the important decisions, grant of concessions etc do not get revealed in the manner stipulated in the law. Governance in a democracy needs to be based on transparency. Transparent functioning also facilitates informed discussion on various issues of importance. In such a situation there is no room for the people to resort to conjecture nor is there scope for wild allegations. Government should therefore reveal as much as possible to ensure healthy governance.
Here I cite a few important events where a meaningful recourse to RTI Act could have been helpful. Let me mention first about the Posco Project. Following Jairam Ramesh showing the green light for de reservation of the forest land, the issue of industrialization and its impact on our farmers has again become newsworthy and the Project, kept in suspense for more than six years, is again being talked about. I am,however, doubtful if the Project is really back on rail. The state government is yet to work towards a civic consensus for meaningful industrialization of the state. In such a situation, one is likely to see opposition to the Project at various stages like allocation of water; allocation of mines and on captive port facility. Unlike some of my friends who do not see much merit in the Project, I have been supportive of the Project right from the beginning. We should have more steel production in the state rather than continue to export our iron ore. We must have competition in steel manufacturing as well as in Port operations. We should promote best international operation practices in our industries rather than continue with a business as usual approach. At the same time, genuine concerns expressed about this Project relating to generation of huge quantities of waste materials and their disposal in an ecologically sensitive area of the state needs to be addressed. One is yet to come across a suo motu revelation under the RTI about the state government’s policy for grounding this mega project
The second issue relates to water. Water for industries has emerged as a sensitive issue in Orissa. Many people genuinely apprehend that industries have been allowed water from the Hirakud Dam at the cost of irrigation. Rengali Irrigation Project, many feel, is not moving fast enough and our farmers in the region are apprehensive that industries of the region would take the water of the River Brahmani leaving little for irrigation. Government should have come up with suo motu revelations on this issue under the RTI. By not doing that, government is only making people more apprehensive and a distrust situation is emerging.
Another important development in Talcher area is worth mentioning. This region has emerged as a highly polluted area of the country. It deserves healing touch rather than further onslaught of new industries. We are now faced with the two mega projects that would convert coal to liquid. I had earlier written in The Pioneer against such a move as the projects would harm the environment apart from utilizing huge quantities of precious water. According to many, liquid coal simply makes no financial or environmental sense. Liquid coal would emit ten percent more global warming pollution than gasoline, all at a time when we are wrestling with how to slow and reverse global warming. It is also extremely wasteful - taking 3.5 gallons of water to make just one gallon of fuel. USA seems to be looking at the associated issues cautiously and have not been in a hurry. China is going ahead with CTL project with the flagship project of Shenhua Corporation with a production capacity of only 20,000 barrels per day. If this succeeds, they plan to augment the capacity to 80,000 barrels per day. Recently China took a bold step when it announced that it was halting immediately its plans to build all but two of its proposed coal-to-liquid projects due to environment and economic concerns. We seem to have opted for a model of 80,000 barrels from the beginning. Each of the two Projects would be mining close to 30 million tons of coal per year in huge underground mines the like of which India never had. Such huge mining operations would surely throw up serious environmental issues. Both the Projects would need over 8000 acres of land and would be in need of huge quantity of water. Talcher does not seem to be the ideal area for such projects. The advantage of producing 160000 barrels of oil per day with unavoidable mass scale degradation of the environment in a highly polluted region of the state looks prima facie unreasonable. At this stage these two projects need to be thoroughly discussed by all stake holders including the people of the area. Government should initiate an informed discussion through suo motu revelations under the RTI Act. The projects need to be kept on hold.
Yet another matter which people would even now like to know relates to the circumstances that led Industrial Development Corporation (IDCOL) to lease land to another Company to set up its fabrication and structural yard to pre-fabricate steel structural for its new Steel Mill in Kalinga Nagar. This land of IDCOL, close to its Ferro chrome plant was meant to be used for the expansion of the Plant. One wonders if the lease was in IDCOL’s interest. Suppose a widow of a valiant member of our Army who laid down his life in Kargil had made an application to IDCOL to lease out only one acre of land out of the forty acres to start a small industrial unit for her livelihood, would IDCOL have leased out the asked for land to her? Was this largess in public interest? Government should explain through RTI Act. Many also would welcome if Government would clarify if the continued retention of thousands of acres of land by a corporate at Gopalpur for a steel mill is as per law and there is no violation of the Land Reforms law even after the company has abandoned the idea of setting up the steel mill there. Suo motu revelation through RTI Act would clear the issue.
It is sad that that various schemes of Agriculture Department are not being conveyed to farmers. Let us take yet another case; of allocation of Government land in Bhubaneswar. Many commercial establishments have come up by the side of important streets of the city. Who are the owners of the land on which big commercial establishments have come up? Have such plots of land been settled through public auction or settled in favour of the most deserving of the applicants who responded to a public notice? The present price of a small piece of commercial land along Janpath would be phenomenally high. People would like to know the names of persons who have been granted government land for commercial purpose in Bhubaneswar in the last twenty five years for appreciating the rationale of such allocations.
The law has been in existence for five years. People should not feel that the Government is not making adequate revelations suo motu. This was never the intention of the framers of the RTI Act.
. *************************

THE FIRST ORIYA LADY ACTUARY IN LONDON PREDICTS GOOD OPPORTUNITY FOR ACTUARIS IN INDIA

2011-05-08T09:23:00.000+05:30

Many talented Oriya ladies have received honours in various walks of life and made us proud. In this piece I introduce yet another illustrious lady, Manasi Panigrahi, who is the first Oriya lady, and possibly the first Indian lady, to be a Fellow of the Institute and Faculty of Actuaries of UK. She joined Life Insurance Corporation of India as a direct recruit officer in 1990. She went to UK when her husband Bijaya Padhi, another direct recruit officer of 1983 batch, was posted as Chief Manager of LIC's London branch office. While in UK, she became a member of Institute of Actuaries and pursued the actuarial profession. She became a FIA (Fellow of Institute of Actuaries) in 2008.Currently she is working for Friends Life owned by Resolution, a FTSE 100 company. (100 most highly capitalised UK companies listed on the London Stock Exchange). The UK Institute has a membership of 20,000 out of which there are 10,000 Fellows (i.e. people who have completed the accreditation process). Women constitute roughly 20% of this Fellow population. About four Oriyas so far have been Fellows of the UK Institute. Indian actuarial population is represented by the Institute of Actuaries of India which currently has a membership of around 10,000 (growing from a meagre 1,800 in 2002). Currently there are 216 Fellows of IAI. Within a few years, the actuarial profession in India has positioned itself as one of the most intellectually challenging professions that only the best would aspire of joining and also as a highly financially lucrative career. While most of the actuaries in India are working for the Indian insurance companies, in recent years; Smt Manasi Panigrahi feels, there is a trend to offer the services to the global market from India - a high end Knowledge Process Outsourcing. While felicitating Smt Panigrahi for her commendable professional accomplishment, I would like to sensitise the meritorious youth of Orissa having penchant for mathematics; statistics and economics to get interested in this profession. That is why I give an account of the role of the actuary.
The actuarial profession goes back to 18th century with the establishment of the Society for Equitable Assurances in London in 1762. Despite the long history, not many people are familiar with this profession. There could possibly be two main reasons why it is so. Firstly, the profession has traditionally been associated with the insurance industry. For this industry, all along, the salesman (i.e. agent selling the policy) has been the public face rather than the professional behind the design and management of that policy. Secondly, the actuarial community is quite small. This is due to the daunting and intellectually challenging accreditation process. The profession expects a very high standard from the prospective candidates in three main competency categories - knowledge, application and communication. Apart from sound knowledge of mathematics, statistics and economics, it has also to be demonstrated that the candidate has the capability to apply this knowledge to the insurance concepts and problems. These days the application also involves competence in various actuarial software and models. Communication is an integral part of the accreditation because an actuary has to explain the rationale behind the actuarial judgements and assumptions in a clear and transparent manner to the wider audience; keeping in mind that the target group may not necessarily have the same level of technical knowledge (e.g. some members of the Board and the policyholders). It is, therefore, not uncommon for many people to give up half way through the examination process or to take a very long time to qualify.
While insurance industry has been the main user, the profession has wider applications in dealing with financial impact of risk and uncertainties in business. Actuaries apply financial and statistical theories to solve real business problems. In effect, they use their skills in mathematics and statistics to create theoretical models of the world around them. A typical business problem might involve analysing future financial events, especially when the amount or timing of a payment is uncertain. But it could also involve understanding something like the weather. So a lot of the work an actuary does might be thought of as risk management. For this reason, actuaries are essential to the insurance sectors; both life sector (life, health, and pension) and non-life sector (general insurance). As the profession would like to say about itself- ‘actuaries make financial sense for the future’.
In some countries, such as France, most study takes place in the university setting. In others, such as the U.S. and UK, employers recruit university graduates as “actuarial student” and support them through “study package” (paying for study material, examination fee etc and offering paid holidays for preparing for the exams) while providing on the job training simultaneously. Examination success is incentivised financially. However, on average students take 5-6 years to qualify as a Fellow (qualified actuary). Institute and Faculty of Actuaries is the body in UK that conducts the exams and offers Fellowship.
Some universities offer actuarial degree which translates to partial/full exemption from the actuarial examinations depending on the grades achieved. However, candidates with exemptions are generally not viewed favourably by employers due to their lack of work experience. Most actuaries, therefore, come through the graduate recruitment scheme followed by on-the-job training.
The supply side constraint due to the rigours of the process ensures high demand for the expertise offered and consequently actuaries are highly paid for the services they render. This global phenomenon is very much pronounced in upcoming actuarial markets like China and India. Prior to nationalisation of insurance industry in India, there were a number of actuaries with UK accreditation. After nationalisation, LIC encouraged the profession by introducing a fast-track system where graduates from mathematics and statistics disciplines were recruited as “actuarial assistants”. They were rewarded with financial remuneration and promotion on passing the examinations. This scheme attracted talent at the time when the scope for upward mobility within LIC ranks was few and far between. However, this scheme was discontinued in 70s. This happened at the time when rapid expansion for LIC saw creation of lots of opportunities and quick promotion. By the time the sector was open to private companies, the actuarial population had dwindled down significantly. The subsequent demand for actuaries by all these companies has resulted in a booming actuarial market in India. Currently an Appointed Actuary, i.e. the head of the actuarial functions in a company can command a salary package of between Rs 60 lakhs and Rs1.5 crores depending on experience and expertise.
The “Institute of Actuaries of India” is the professional body representing the actuaries in India. It follows the same system of accreditation as “Institute and Faculty of Actuaries”, UK. Although theoretically it’s very much possible for an actuary to work in both India and UK, practically there could be a couple of issues. UK insurance market is much more complex and hence actuaries tend to specialise in a particular expertise. Indian market is comparatively new and there are fewer actuaries. So actuaries are generalists rather than specialists. An Indian actuary will have exposure to many areas (product development, premium setting, underwriting, and valuation) unlike his UK counterpart. The complexity of UK market has led to considerable model development. UK actuaries have a comparative advantage over system, process and actuarial software over their Indian counterparts. Indian market is untapped and expanding. Hence there is a particular demand for actuaries with knowledge of product design and pricing. UK market is saturated; the priority is risk management of the existing portfolio of business that is embedded with substantial guarantees. Both countries have different regulatory regimes. The difference will be more conspicuous from 2012 when the European Union Solvency II regime comes into force.

&&&&&&&&&&&&&&

VOICE OF THE STATUES IN THE TEMPLE CITY

2011-05-08T07:44:00.002+05:30

“You take this seat; the seat of the rapporteur”, a man holding an umbrella told me. I obeyed; meekly. The locale looked familiar; almost like the Procession Avenue of the Temple city of Bhubaneswar, between the Master Canteen and the office of the Post Master General. The fire-tender; the long, thick and meandering sisal ropes; the barricades and the police vans had not arrived. Not even a single person in khaki uniform was to be seen. Absence of these road-blocks to freedom of expression made me wonder if Ram Rajya has really arrived. Then I realised that the state Legislative Assembly not being in session, loud expression of dissent, even in the Procession Avenue perhaps was in order. Even then I was anticipating their arrival any moment. Suddenly I heard the approaching footfalls. It was a strange sight, the sight of a galaxy of statues of illustrious sons of the soil. They had left their pedestals and descended on the Procession Avenue. Those were the people whose pictures one rarely sees these days on the walls of the school buildings. Being persons of great sagacity, they did not waste time. The wise men commenced business promptly. Each one had the right to express his views. Without any debate, the saintly person with the umbrella was requested to conduct the proceedings of the meeting. He looked at me and smiled when he saw my laptop ready for recording the proceedings.
“I feel lonely on the street after the traffic police manning the post leaves at night. The apprehension of a tipsy driver hitting his huge sports utility vehicle (SUV) hunts me. I am equally nervous with a young motor cyclist when he displays his driving skill to the girl companion and speeds through the narrow space between two moving cars and narrowly misses hitting my pedestal. I do not even have the small privilege of a blinking red lamp on my head to show my status while I was alive. Nor do I have a chair to sit on. How long does one keep standing? My regal attire gets soiled by the bird droppings. I am denied the privilege of even a single bath for months.” Another speaker attired in Dhoti and Kurta with thick moustache bemoaned his plight. “I have been provided with a Book; but I go without a pen. How does a poet write without a pen and that too in a standing posture? I needed a scenic environment; not a huge hospital in the vicinity. I look forward to a flowing stream; peacocks dancing on the bank of the hill stream; not the shrill siren of an Ambulance.” The third speaker spoke of “Many things are really happening over a cup of coffee”. The presiding officer looked a bit perplexed. “Why bring in coffee” he asked. Someone, familiar with the subject, whispered “Cafe Coffee Day”. “Many more things keep happening around me with luxurious hotels and swanky restaurants on both sides. I never lose my cool. Neither does the celestial charioteer, Lord Krishna; nor His worthy disciple Arjuna in the chariot placed nearby. It is the outdated mindset which makes you uncomfortable with mere coffee,” a tall articulate figure said, with a husky voice. Many people looked at one another in silence.
Someone referred to many statues of the same person in different places of the city. “What is the harm”? Someone else wondered. But the speaker was unmoved. He referred to a long waiting list of completed statues awaiting installation. No convenient place for making pedestal for these statues has been arranged. It was therefore suggested that the concerned persons should voluntarily surrender a few pedestals and limit their presence at best to two places in the city. An erudite looking, bespectacled figure volunteered. “I surrender the perilous pedestal close to the place where the foundation stone was laid for the state capital”. He had his justification. He was feeling uncomfortable having been placed too close to the edge of a precipice. He was feeling giddy at this position. Moreover, the sculptor had made a mess of his towering personality. He preferred his presence at least at two places. One place of course was understandable; in front of the state Library where the pedestal provided the much needed chair. The ambience was appropriate for the leader whose intellectual prowess was widely known. The other locale was a modest park; not big enough to host such a personality but was certainly much better than the Raj Mahal Square which is fast degenerating to an epitome of urban chaos and squalor. The gathering of illustrious men respected the wishes of this leader. One of them raised the issue of yet another statue that became victim to the fly-over project. That statue, one of the oldest in the city, the speaker said, had been subjected to years of cruelty. For years, the statue remained in a cage. The speaker was sounding emotional. Then it was subjected to the company of shoe stalls. “Where has the statue been taken”? The speaker asked. There was no answer. The best oratorical display, however, came at last. A warrior had come with his horse. He complained of increasing deficiency in hearing. He had his hearing ability severely impaired due to the explosive noise of the vehicles at an important crossing of two National Highways. He was gracious enough to remember yet another valiant son suffering the same fate near the Museum. “Who looks at us”? Pointing towards the man with the umbrella he wondered if the present generation even recognises him. “What has been our contribution to the enrichment of the society? Are we relevant today? Even if we are positioned throughout the temple city and even if our number increases do we make any impact” he wondered.
The man with the umbrella signalled that the discussion should close and some resolutions passed. He looked at me to be sure that I had not gone to sleep. By that time the moon had moved almost to a position of 45 degrees from the western horizon. Seeing me still awake and active with my computer, he had a smile; of reassurance. The assembly of statues decided as follow:
The statue in front of the Raj Bhavan must not continue where it is now positioned. The illustrious son of Orissa must receive due respect in the green garden nearby. All statues standing as lone sentinels on the roads must be shifted to good gardens. Not more than two statues of the same person should remain in the city. The locale of the statues must have correlation with the professions or liking of the concerned persons. In this connection the assembly commended the decision of those that made it possible to have the statue of the celebrated musician close to the Ravindra Bhavan. Statues should be shown the courtesy of appropriate illumination at night. The statues must be cleaned regularly. All the statues must have a short narration about them so that the younger generation derives inspiration. The assembly also was of the view that the preceding recommendations were only for an interim period; to be followed till the existing statues exist. Upon these statues wearing away with flux of time, the society should restrain itself from the temptation of replacing the worn out statues by new ones. Nor should it erect statue of any other personality in the temple city. Instead of deification of mortals, howsoever worthy they have been, the society should henceforth only patronise great works of art in different parts of the city to promote lofty concepts like equality among people; value of liberty and indomitability of human mind. It should also promote such works of art that decry sycophancy and servility. The assembly commanded me to report the event in the most truthful and objective manner.
~~~~~~~~~~~~~~~~~

IMPENDING CABINET RESHUFFLE ----- IT COULD BE AN ENGINEERING MARVEL OF REWARDING MERIT OR A BAD ENGINEERING FEAT OF PUTTING A SQUARE PEG IN A ROUND HOLE.

2011-04-28T16:27:00.002+05:30

Local press for sometime has been reporting about imminent reshuffle of the Orissa Cabinet. Spectrum of speculations on the matter varies. Some opt for a low band-width and anticipate a minor reshuffle where as some mention about a sweeping change. Imaginative reporting has been even referring to the glow (and lack of it) on some faces. There is talk that Chief Minister is in need of a new -look Cabinet. This could be political engineering to make people forget those who have brought blemish to the otherwise lily like clean government. Many keep reminding the readers that choosing or dropping a colleague and assigning duties to a colleague are the prerogative of the Chief Minister. One, however, does not feel convinced that the least performing Ministers have always been shown the door. The way the Indian political scene is developing, it has become difficult for the Prime Minister or the Chief Minister to form a Cabinet entirely the way he would like to have. We have heard Man Mohan Singh talking about compulsions of a coalition government. Even in case of a government formed by a single Party, a Chief Minister has no unfettered freedom to choose his colleagues. He has been guided by the high command of the Party. In case of a regional Party, the matter may look relatively simple; but the Chief Minister has to take into consideration various factors including factionalism in his Party. He has to satisfy regional aspirations; he has to consider factors like loyalty; merit and seniority. If there are forces in the Party that are stronger, more wily and manipulative, then the Chief Minister, even being the head of a regional Party, does not succeed in having a Cabinet totally to his liking. A powerful caucus may like a pliable person to get into the Cabinet so that the caucus can call the shot in some key Departments. The Radia tapes throw some light in this regard.
Coming back to the Orissa scene, I would expect a harder introspection while looking at the issue of a reshuffle of the Cabinet. Whenever I see a photograph of Orissa Sachivalaya, the picture of a bent Deodar tree in front of the building offends my sensitivity. Ideally, Ministers, bureaucrats and trees should grow erect. Stooping is unbecoming. There is increasing perception that the Ministers in Orissa are mostly fulfilling an unavoidable constitutional requirement. One does not see a Minister in Orissa talk or function, the way, say, Pranab Mukherjee or Chidambaran or Jai Ram Ramesh or Kapil Sibal does. Most Ministers appear to be functioning under constraint. In such a situation, I am pretty sure hundreds of thousands of citizens like me today feel unconcerned about the composition of the Cabinet. This growing ‘disconnect’ between people and the governing machinery leads to disillusionment for the citizens on the one side and drift in governance process. In such a situation I do not blame myself when I tweeted “If Government shuts down, would cuckoo stop singing in my garden? Would my grocer stop home delivery?” A friend of mine could even tweet “If I do not cast my vote in an Election, would my television stop telecasting cricket matches or Hindi serials?” Our Constitutional Fathers did not visualize a citizenry afflicted with withdrawal syndrome. But then why blame the citizens? They are only reacting to a perverse situation. Political managers therefore must assume responsibility and stem the rot. I would therefore address this piece to the political managers and leaders.
Chandra Babu Naidu performed and, apart from doing many good things, developed Hyderabad as a world class city. The city has become home to activities that are relevant and critical to the economic, scientific and technological development of our country. He lost the election; but he is remembered as a performing Chief Minister. I would also believe that successful Chief Ministers like Nitish Kumar or Narendra Modi are doing the thing that needs to be done. Both are ensuring a sound synthesis between good governance and wholesome development of their states. There is no diarchy where de jure power rests with the Chief Minister and de facto power with some extra constitutional entity that is without any accountability to any Constitutional institution. Neither Gujarat nor Bihar has a system where the bureaucracy seeks/receives orders from any extra constitutional authority. Such a system would not only be a subversion of the Constitutional arrangement; it would lead to injury to the constitutional authority. Style of governance in Orissa for more than a decade -- a long enough period—is before the people to judge if the Orissa model is the ideal one for being emulated elsewhere. I would think that both Narendra Modi and Nitish Kumar would be remembered for long by posterity not so much for the length of time they would be in power but for the way they performed. How right Abraham Lincoln was when he said “and in the end, it’s not the years in your life that count. It’s the life in your years.” It is time aberrations in governance process in shape of extra constitutional power-centre, wherever it exists, was put an end to. “Some cause happiness wherever they go; others whenever they go”, Oscar Wilde had said.
Rules of Business framed for transaction of government business, among other things, stipulate the matters which would be decided by the Minister and which, by the Chief Minister. If working of a Department displays total chaos, it surely would indicate systemic failure. In such a situation, the Minister cannot be held solely responsible. Mere change of a Minister either through resignation or dismissal does not improve the situation. The reference to Prime Minister’s role and the role of the PMO by the Committee on Public Accounts of the Parliament on 2G spectrum scandal points to the consequence of a systemic failure. In a democracy, the Chief Minister or the Prime Minister cannot and should not escape blame. Orissa has been witnessing glaring instances of administrative and financial irregularities ranging from widespread corruption in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme to massive theft of iron ore; from unmerited allocation of natural resource like sea-front for port development to continuance of thousands of ghost ration cards; from corruption in the implementation of feeding programmes to illegal acquisition of thousands of acres of heritage land for a private party for a fancy project.
I am not sure if the much speculated about Cabinet reshuffle would materialise. Even if it does, it may or may not be a major one. It could be a bad engineering feat like a square peg in a round hole; it might as well be an excellent feat of rewarding the most meritorious. Neither, however, is the real relevant issue today for the people of Orissa. The issue is the prevalence, tolerance and promotion of aberrations in the functioning of the Orissa system that has led to steady deterioration of the quality of governance. I quote the Bible for a remedy. “Physician, heal thy self.”

###################

DESPITE ANNA HAZARE, STATE OF INDIAN CIVIL SOCIETY IS UNLIKELY TO CHANGE SOON

2011-04-22T06:19:00.000+05:30

Indian polity seems to be on a mission mode to transform its democratic ethos. It also appears to be in a hurry to bestow exclusive ownership of its natural resources to the chosen few. It has been zealously nurturing some political parties towards a culture that draws inspiration from an oligarchic system. More and more persons from political families are getting into Parliament. The statistics provided in the recent book of Patrick French are quite revealing. It mentions that every MP in the Lok Sabha under the age of thirty had inherited a seat; every MP of the Congress under the age of thirty five was a hereditary MP and nearly forty percent of the sixty six Ministers from Lok Sabha were hereditary members. Corruption today has become the closest companion of the aam admi and greets him on high ways and bye lanes. No wonder our country now occupies a not respectable position (87th among 178 countries) in Corruption Perception Index of the Transparency International. Factors for measuring corruption in public sector in any country include desire for personal enrichment , lack of transparency , arbitrary career promotion, abuse of power by public officials , lack of clear rules and standards of conduct , pressure from superiors/high-ranking persons, excessive patronage and tutelage and a general view that everyone else does it. These are factors every Indian is so familiar with.
Indian society of late has been witnessing the bizarre dance of the rich. Opulence is gaining fantastic heights with great speed. Former MP and President of newly-floated YSR Congress Party, YS Jaganmohan Reddy, and son of the late Andhra Pradesh Chief Minister Y S Rajasekhara Reddy, declared movable and immovable assets of Rs 365 crores while filing his nomination for the recent bye poll to Kadappa Lok Sabha seat. Mr. Jaganmohan's wife reportedly owns assets worth Rs 4133 crore. In 2009, while filing nomination for Kadappa Lok Sabha seat, Mr. Jaganmohan had declared assets of Rs 77 crores. That someone who had declared assets of say one hundred crores of rupees only two years ago would declare the present asset to have multiplied nearly five times, is a matter which should receive much greater scrutiny by the civil society. An indifferent approach would only point to the depth of decadence of social conscience. If our Parliament is getting more youngsters who are successors to father, mother or grandfather in the Parliament, no wonder an ambitious, competent and educated youth feels today thoroughly marginalised and wonders how he or she could enter the political mainstream.
In this depressing set up when Anna Hazare took up his crusade against corruption, it was only natural that the marginalised citizenry responded with alacrity. It suddenly felt empowered and realised that it also has some relevance in the society. Despite the success of Ann Hazare to make the Government agree to a high level drafting committee for the Lok Pal Bill and despite the helpful response of Smt Sonia Gandhi to the call of Anna Hazare, not even the most robust optimist would entertain any illusion that the Indian civil society would soon release itself from the vice –like grip of corruption even after the Bill is enacted. Indian civil society has shown its passionate love for silence and tolerance. Such a posture betrays negligent indifference and timidity. It is also an opportunistic posture so that the wily one can take advantage from a chaotic situation whenever and wherever possible. The present rot is too deep to ensure an imminent and successful journey to El Dorado for India’s youth.
Yet more and more people who have been at the receiving end of a corrupt system are pinning hope that things would start changing. Why has this been possible? I would tend to believe that the psyche of India’s youth has accepted Anna Hazare as the most appropriate leader who has the moral conviction and strength of character to secure for the youth a better India. There is widespread societal acceptance that Anna Hazare can stake his life for a cause. Political Parties realise this too and have found it expedient to extend support, at least in public.
While many feel that India’s civil society has become proactive and healthier over the issue of corruption; civil society in Odisha seemed to have been only marginally affected. By and large, it continues to be afflicted with a long stupor. Even the super cyclone of 1999 was too weak to disturb it. Of course there have been a few instances when civil society articulated its strong feelings. I remember the days when one Advocate General had become the centre of controversy. The Press had taken up the issue most commendably. Late Pradyumna Bala of the Pragativadi had displayed remarkable courage of conviction through his lucid and forceful writings. Government ultimately respected the public sentiments. Of late, the civil society seems to be responsive on some issues. It has shown remarkable determination to keep alive the issue of the mining scam. People are more reactive to the issue of displacement arising out of industrial projects. In Rourkela, civil society’s response to alleged highhandedness of the police has been a commendable display of people’s growing frustration. The same city has been showing its concern over the highly unsatisfactory rail services. The other day some ASHA workers reacted to alleged unbecoming behaviour of some employees of the Capital Hospital towards some expectant mothers who had been brought to the Hospital from distant places for safe delivery. Ultimately such response of the members of the society would have far greater impact than selective action of the state vigilance organisation in curbing corruption. In Bolangir, the civil society has been displaying its frustration over the continuing shortage of teachers in Government College. While these instances are welcome developments, these are far too feeble . The state’s civil society continues to be indifferent to a number of issues which have weakened the vitals of our polity as well as its economy. Large scale mismanagement in the education sector ; government’s whimsical policy that would soon make most of our schools and colleges go without Headmasters, Principals, Teachers and Lecturers (and entrust the future of our young children at the mercy of people of lesser intellectual calibre engaged through contract), are issues that ought to sensitise the civil society. Migration of young men and women on the lookout of jobs and the increasing trafficking of girls has reached alarming proportions. Our civil society can ill afford not to take note of these developments. Nor should the society ignore the growing tendency of our police not to lodge FIRs. For example, it is difficult to register FIRs in Bhubaneswar on theft of bicycles. In the absence of registered cases, a rosy picture on the crime situation can be engineered. While the police can earn praise from the credulous masters, at least the affected citizenry should devise ways to checkmate such disturbing trend.
A mute citizenry has been, and, will continue to be, anathema to democracy. A polity does not turn into a democracy by a declaration in the Constitution of the country. A real democracy has to be a functioning democracy which is enriched by an alert and articulate society; where articulation of views is a spontaneous phenomenon and where no truce is made with forces that are not friends of democracy. It may be relevant here to mention that the draft Bill prepared by Anna Hazare’s group is known as “The Anti-Corruption, Grievance Redressal And Whistleblower Protection Act, 2010”. On the flip side, a whistle blower has relevance only when the political masters are not hard of hearing. In Orissa many would like to be assured that the hearing faculty of concerned persons is not impaired.

&&&&&&&&&&&&&&&

RESUMPTION OF CREDIT TO NOT-FOR-PROFIT MFIs WOULD FACILITATE FINANCIAL INCLUSION.

2011-04-15T08:25:00.002+05:30

I had a memorable encounter with a moneylender while working as District Magistrate in Sundergarh in 1975. On receiving complaints about illegal money lending activities at Lefripada, I had made a surprise visit to that important village, not far from the District headquarters. It was a day of weekly market and the den of the moneylender was in close vicinity to the market place. My informer, inside my vehicle, pointed towards a house. I stepped out and ran into the house. The atmosphere inside was orderly; business was brisk. Rules were simple; easily understood by the needy simple village folk. Cases of default were rare. I was impressed with the professionalism in book keeping but was shocked at the usurious rate of interest. It was a whopping 130% per annum. The moneylender was not a local person; he came from the southern part of the country but operated very successfully in a district of Orissa. My intervention put a stop to his activities; but the people of the area came to me after about a month to plead for an alternative arrangement to get loans to meet their needs. I was not sure if the cooperatives or the commercial banks would be of real help. The moneylender in Lefripada was operating for profit; he was acting against the prevailing law; but he was serving a need. I had found him obnoxious as his activity was not lawful; his profit was excessive and modality exploitative.
Thirty five years after this experience, I am now associated with micro finance through my association in a not-for-profit MFI, Swayamshree Micro Credit Services (SMCS). Crisil had put this MFI in the list of country’s top fifty MFIs. We have consciously decided to limit SMCS’s clientele to two hundred thousand and serve them optimally. In this section 25 Company, we have excellent people who work more for a cause. One of them is Shrimati Rama Sahoo, Loan Officer, who explains to the members of SHGs the nuances of micro finance through her persuasive poem and sings JIBANARA CHALAPOTHEY HAARIBANI KEBEY (Never shall we be defeated in our mission). Members understand and sing in chorus. She works with dedication, devotion and commitment and performs better than many MBA professionals. I am convinced that financing the poor can be done equally well even without profit-motivation. I had watched the euphoria when a huge micro-finance oriented NBFC came out with a public issue. I respect this new approach. I also respect the sagacity and financial prudence of our Banks who extend support for such venture.
But I am sad that today the Indian banking system won’t finance a not-for-profit MFI, be it a Section 25 Company or a Society or a Cooperative. I wish to believe that the present embargo is not open-ended; but it has been far too long. Can the small MFIs remain afloat even for a fortnight without finance? A poor lady as a member of a SHG can ill afford even a short interruption in her modest economic activity. If she and her Group have been disciplined borrowers, is she not entitled to the privilege of continuity in flow of credit? If she loses confidence in these MFIs, moneylenders only would emerge winner.
A huge percentage of our population is in need of meaningful financial inclusion. Level of economic, social and educational development varies from place to place. Needs of the clients also are different. A uniform approach for the MFI sector would be inadequate to address the complexities of the requirement of the clients. NBFCs which operate in many states and work with a motive of profit need to be placed under a different regulatory discipline. Because of their size and spread, NBFCs, despite sincere efforts, may not be able to effectively address the localised deprivation issues in remote areas. A region specific MFI therefore is more likely to succeed in its objective and make meaningful financial inclusion easier since its personnel and management, drawn from the same milieu, would be more sensitised to local issues and needs. The outstanding loan portfolios of MFIs which are not for profit Trusts, Societies and Section 25 Companies constitute 19% of MFI finance and they occupy an important and critical space in the MF sector. Malegam Committee should have given due attention to these MFIs.
Though the role of such MFIs is important for the economic empowerment of the poor, absence of a supportive and facilitating central legislation has been a constraint on more orderly and widespread micro financial services. There are many reasons why microfinance loan has remained costly even with well run not-for-profit MFIs. Small ticket size loans, door-step service and operations in remote and difficult terrain add to the cost. These are essentially highly supervised operations requiring intensive deployment of sensitive and enlightened personnel carefully chosen and adequately trained. Money is spent by microfinance institutions on group building and preparing the clients. This helps in enforcement of repayments through peer pressure as a substitute for physical collateral. Most MFIs have low business volumes and high transaction costs; as a result, the operation becomes costlier. There is need for cheap credit for the poor. Not-for-profit organizations should get Bank loan at DRI of 4%. Loan may be sanctioned to them from a consortium of Banks as this would promote better transparency on book-debt. Since these MFIs lack capital base, these MFIs should get adequate support from a dedicated central fund. They may also be permitted to tap saving deposits from members which would make the SHGs and the members more integrated with these MFIs. All these interventions would substantially reduce the interest burden on the borrowers. Banks find it easier to meet their lending target to priority sector and weaker section by financing SHGs through MFIs. To me such an approach appears both pragmatic as well as desirable. Such a hand in hand approach would facilitate the programme of financial inclusion. For financing such MFIs, simplified norms have also to be made applicable. The problem of over borrowing can be tackled if only one MFI lends to a borrower and multiple borrowing is not allowed. However, where a Bank has financed a person, another MFI may be allowed to finance him to supplement his requirement. Credit Information Bureau at the state level on the model of Andhra Pradesh may be formed to ascertain details on borrowing of the SHGs/individuals.

Long freeze on fresh inflow of credit has affected the MFIs; whether they are big or small. Relatively bigger ones are seriously considering various strategies for survival. Debt recast seems the only option for them to secure funds, as banks and financial institutions continue to shy away from securitisation and purchase of loans. While most microfinance institutions apprehend that debt restructuring would affect their reputation and credibility yet some MFIs, faced with deteriorating liquidity, have initiated talks with bankers on restructuring of debts in view of absence of preferred alternatives like securitisation deals.

The not for profit MFIs however look today more vulnerable though they seem to be more appropriate institutions to address the issue of poverty and financial inclusion as well as the attendant issue of equity. Credit flow to these MFIs should commence without delay. If these institutions wilt due to inadequacy of government policy and face credit-crunch as faced by them now, they would surely wither away and unscrupulous moneylender would emerge winner.

*************

PROMOTION OF SOLAR POWER IN ODISHA IS AN URGENT NECESSITY (Let’s make Bhubaneswar the solar city of India)

2011-04-15T08:19:00.000+05:30

Years ago, solar cooker had fascinated me. The humble salesman told my wife that the real worth of the cooker is its inability to convert either the rice, dal or curry into charred powder through overheating even if the housewife has forgotten to take out the cooked food from the cooker in time. We used the humble instrument for some months and gifted it to someone needier so that he could cut down his expenditure on fuel. While interacting with the Port workers in Paradip, particularly the group known as Port labour, I must have extolled the virtue of the solar cooker on a number of occasions. My fondness subsequently shifted to the sleek solar lantern. I got one and we used it most intensively for years. I remember I did cause some surprise in amiable Prof.VS Ramamurthy, then Secretary,Science & Technology, Government of India during our interaction in Moscow-- where we both were in an official delegation—when I told him that my solar lantern has been serving me for more than a decade with small maintenance expenditure. My fascination for the lantern has never diminished. It still works, thanks to the kindness of Sanjay Dhavan, the suave and enlightened owner of the Solar Shop at Bhubaneswar. Subsequently, I got attracted towards the home lighting system and got one installed in our small farm warehouse near Nandan Kanan, thanks to the help of late Nikunja Kishor Mohanty, an Agriculture Engineer of exceptional merit and dynamism, and Sanjay Dhavan, We made use of the device for some years. My tryst with these useful gadgets convinced me about the sagacity of our ancestors who had been worshipping the Sun as the perennial fountain of divine energy and illumination.
A meaningful promotion of solar energy should make these appliances available to the general citizenry throughout the state irrespective of whether the place has the facility of electricity or not. These appliances should be made available to the holders of ration cards with a reasonable government subsidy. Let us aim at making Bhubaneswar the solar city of India which would be known all over as the city where every householder uses solar cooker; a home lighting system and also has a solar lantern. It will make an impact.
We have not gone as fast in tapping this abundant source of energy as we ought to have. Apart from the susceptibility of the conventional sources of energy to fast depletion, the recent disasters like the Deepwater Horizon oil spill in the Gulf of Mexico, damage to the nuclear facility at Chernoby and the Tsunami devastated Japanese nuclear facility at Fakushima Dalichi power plant should spur political leadership, the world over, to provide the desired impetus to the exploitation of solar energy. Every step we take in this direction should be welcome. The time to think solar in our daily life has arrived.
We should now think of Odisha Solar Mission. I am impressed that a group of young professionals led by Chandrashekhar Mishra, under the aegis of Canyon Consultancy Pvt Ltd (www.canyonconsultancy.com) have been striving for the blessings of the government for such a Mission in Odisha.
We must ensure that in Odisha industrialization and environmental protection go hand in hand. We should address the issue of increasing ecological degradation. Odisha is blessed with abundant Solar Energy and if harnessed efficiently, the state is capable of producing billions of kilowatt-hours of electricity. As per OREDA estimation, there is a solar potential of 14,000MW in the state of Odisha. But, considering the improvements in the technology Canyon Consultancy believes that this could cross 20,000MW. It is time all relevant stakeholders came together and took initiatives to create conducive investment environment for tapping this huge potential.
States like Gujarat, Rajasthan, Tamil Nadu and Madhya Pradesh have been moving fast. The largest solar park in Asia in Gujarat has drawn attention from many quarters. Initially up to 500MW would be generated over an area of 5,000 Acre in Charnaka village of Patan District by harnessing solar energy. In the first phase of the project, 15 solar power generation companies would produce 176MW.The project will offer solar power manufacturing, assembly, as well as research and development-related facilities at a cost of Rs.10,000 Crore. There would be a training centre to train local people. The Gujarat Power Corporation (GPCL) has been appointed as the central agency to establish, operate and maintain the Park and 15 companies have already been provided with plots. The state government has also agreed to purchase 993 megawatts worth of power from the site to encourage development. Planning Commission has approved a one-time additional central assistance of Rs.210 Crores for development of the Park. The Asian Development Bank has also approved a soft loan. We should also have similar project. I find great worth in Canyon Consultancy’s advocacy for a policy which would also offer solar power manufacturing, assembly, as well as research and development-related facilities in the state. The solar village, under the policy, should lease plots to companies and provide water, electricity, roads and power transmission services at one place. When completed, the 1,000MW facility would have made great impact. We need to create land Banks in such Districts that have greater potential for harnessing solar energy. Private sector developers should be able to access these land Banks for selection of sites for development of Grid Interactive Solar Power Projects.
Government should permit a single entity for solar cell/module manufacturing as well as running a solar power project. For example, if one manufacturer wants to put-up a 100MW cell/module manufacturing facility in Odisha, then the State government should also allocate up to 25MW of solar power project licence to the same party. This will promote solar manufacturing and generation of solar power.
As of now, 30% capital subsidy and/or 5% interest rate loan from banks funded by NABARD through refinancing scheme are available for off-grid solar applications. Government of Odisha could provide another 10% capital subsidy. Under this scheme, Government of India has a target of 200MW by 2013.Till now, except the 50kW SPV lighting system project for the Secretariat, no other project has been forwarded to Government of India, whereas Rajasthan, Gujarat and Punjab have much better performance. The state government should make it compulsory for high power consuming units to go for solar off-grid applications.
There is great merit in Canyon Consultancy’s advocacy that Government of Odisha should opt for a Mandatory Solar Generation (MSG) regime for environment polluting industries including Thermal Power Projects, Mines, and Chemicals etc. that would require these industries to set-up solar power units that would produce 5% of the total power consumed or power produced. The State can develop 50 MW SPV and 50 MW Solar Thermal power Plants through selection of developer(s) by the tariff based competitive bidding process on concept of bundling of Solar Power with equivalent amount of conventional power. The successful bidder will set up Solar Power Plant in Odisha and Supply equivalent amount of conventional power from Power Plants located anywhere in Odisha or rest of India. The entire power should be purchased by GRIDCO on tariff determined by a process of competitive bidding and approved by OERC.
State should also promote decentralized and off-grid solar applications to meet various electrical and thermal energy requirements for home lighting and for activities like solar PV pumps for farmers, powering computers in schools, refrigeration for medicines in primary health centers, running milk chilling plants. The off-grid solar applications should be promoted also for replacement of diesel based generators sets.
Our worthy ancestors had created the engineering marvel in Konarka in such a manner that the first rays of the Sun fell inside the Temple where God Sun was the presiding deity. We should strive to be as worthy. Let us formulate an ambitious solar policy and implement it with dedication.
*********************

GOVERNANCE DEFICIT IS MOSTLY ABOUT INADEQUACY OF LEADERSHIP

2011-04-01T06:45:00.000+05:30

On the 18th of March I was in Mumbai. I remember the day for two reasons. One related to me as an Indian and the other as a former member of the country’s bureaucracy. I spent the day in the iconic Taj Mahal Palace Hotel. The Hotel is back to normalcy after renovation and was bristling with activity. I viewed the restoration as a testimony of the indomitable Indian spirit. The vibrant Hotel convinced me that acts of terrorism can never match our commitment to democracy, secularism and economic progress. The other reason which made the day a special one was that per chance I watched, in my room television, Narendra Modi’s address at the Tenth India Today Conclave in New Delhi. I view Narendra Modi, as any apolitical bureaucrat would; more as the Chief Executive of Gujarat and less as a leader of a political party. Eulogizing him is not an endorsement of the political party he belongs to. BJP is in power in a number of states but progress or standard of governance has not been uniform in all these states. Gujarat, however, has emerged as a shining example of what can happen with good governance. “Gujarat is showing the country what is possible”, Narendra Modi said that day. Gujarat's formula for balanced economic success is to avoid over-dependence in any sector. He has evolved a three-part development model for Gujarat where one-third is industry; one-third is services sector and one-third agriculture. He mentioned about Gujarat’s stupendous growth rate of 12.8% in agriculture over the last 5 years (2001-02 to 2006-07) compared to the country’s overall slow growth rate in agriculture. Seven to eight years ago, Gujarat's agricultural income was Rs.90 billion, now it is over Rs.500 billion. Farmers have gained from high-value fruits including papaya, kesar mango and dates. Where once droughts were common; new crops like sugarcane are flourishing, supported by drip-irrigation technology. In Gujarat laws allow farmers to sell direct to private buyers. Companies buy crops from farmers one year in advance; thereby reducing risks and encouraging investment. Many multinationals have established processing units in Gujarat and farmers are benefitting. In Gujarat, electricity shortages were common before 2003. From 2006, Gujarat's Jyotigram initiative has been giving 24 hour electricity and connectivity to 100% of villages. With round the clock power, women in villages work with electrical appliances, children study in the night and rural businesses are growing. More people now are returning to villages. I feel people of Odisha too deserve such privileges.
At the end of the address he took a few questions from the audience. One came from an IAS officer, now on an academic research assignment. He mentioned about unanimity among many captains of industries of some countries about the lack of corruption in Modi’s regime and wanted to know how it has been possible. Modi clarified his stand most lucidly. He debunked the oft-mentioned clarification that corruption is the unavoidable outcome of compulsions of electoral politics. The value of truth, according to him, should strengthen our resolve to make decisions that would benefit our people, and not serve personal interests. This Indian ethos he draws inspiration from.
Another question related to the sector of health. Narendra Modi, in reply, referred to the infant mortality rate (IMR) of Gujarat and spoke about the initiative he has taken in this sector. He is not happy about the prevailing IMR of 48. He is keen on improving the situation. He referred to the special intervention through the Chiranjeevi Yojana that ensures the BPL families to improve access to Institutional delivery. The scheme, initially a pilot project, has now been extended to the entire state. Private medical practitioners (mainly gynaecologists) have been empanelled in the scheme to provide maternity health services. These providers are reimbursed a fixed rate for deliveries carried out by them. It has been recognized that mothers who belong to Below Poverty Line (BPL) families are the most vulnerable to death during delivery since they face significant risk owing to their poor socio-economic status and limited access to healthcare services.
Integrated health policy for Odisha (2002) had the goal of reducing the IMR to 45 by 2010. Had this happened, we would have been in the company of Himachal Pradesh and Jammu & Kashmir and would have been ranked 23rd. Assuming the present population of the state at 427 lakhs , I would think that around 9.70 lakh babies are born in our state per year. Out of them, around 67000 babies are dying before celebrating their first birthday. This is the implication of the IMR of 69. IMR in Kerala is only 12. In case Odisha achieved this level of IMR, the state should be able to save the lives of around 55400 babies in a year. With IMR at 69, Odisha’s present inter-state ranking is 34; and the state is almost at the bottom; just above Madhya Pradesh where IMR is 79. Bhadrak has the lowest IMR at 40 and Malkangiri, the highest, at 103 followed by Rayagada at 92. The state has of course moved away from the much grimmer situation of 2001 when the IMR was as high as 91. National Rural Health Mission has made it possible for the expectant mothers in the rural areas to have increasing access to public health delivery services even though the benefits have not accrued uniformly in all the areas of the state. I made an analysis of the situation in the District of Jagatsingpur. This District with the present population of around 13 lakh would be having around 29500 live births per year. Institutional delivery figures indicate that only around 12000 births are taking place in a year now in hospitals of the District. This indicates that only around 41% of the live births take place in the hospitals of this fairly developed District where more than 80% of people are literate. The situation would be quite alarming in KBK Districts. It would have been a timely intervention for the government to have put in place an imaginative policy like the Chiranjeevi Yojana in Odisha.
Doctor-population ratio in Odisha is quite unsatisfactory. There seems to be one practising doctor (Registered with MCI) per 2500 people. Karnataka has 1 doctor per 794 persons; Tamil Nadu, one per 861 and Kerala, one per 953. We have to have about 40000 Doctors (against the present level of 15000 Doctors) in the state to get closer to the ratio of 1:1000. This shows the magnitude of the task before us. We need to make a meaningful beginning by opening more Medical Colleges, if necessary, by providing liberal state incentives. In 1980-81 Maharastra had 13 medical colleges and in 2006, the number increased to 39. Tamilnadu added 16 colleges during this period and the number went up to 25. Andhra Pradesh added 24 colleges and Karnataka 27 colleges. During this period, however, Orissa added only one College and the total went up to four. We should have at least ten more Colleges within two years. KBK Districts should have at least four of them. State Government and Nalco should jointly ponder whether this Navratna PSU has done enough towards its Corporate Social Responsibility. Nalco should be remembered in Odisha more as promoter of two Medical Colleges at Angul and Damanjodi than for the gold bars seized by the CBI. Rourkela Steel Plant should also have a Medical College in Rourkela. Tata Steel, Vedanta and Jindal Steel & Power have good presence in the state and these corporate houses too should promote Medical Colleges in the state.
Gujarat has shown what an enlightened leadership can achieve. In the ultimate analysis, Governance deficit, wherever it exists, is largely about inadequacy of the leadership.
******************

QUALITY SUPERVISION AND APPLICATION OF TALENT MINIMISE GOVERNANCE DEFICIT

2011-03-29T17:32:00.000+05:30

Supervision is an essential tool of governance. Institutions and organisations have wilted where supervision was either poor or absent. This is true also in our tiny personal universe. We have a small plot of farm land of half an acre in a village near Bhubaneswar where I had been trying to find whether a marginal land holding would be a profitable proposition for a farmer. This farm therefore had been my laboratory for making a few experiments in this regard. In one season we had grown okra (lady finger) for producing seeds. I was irregular in my visits to the farm. Once when I visited, I had a sudden encounter with a huge monkey who emerged from the thick growth of the plants. I looked at the trespasser with consternation; but he looked into my eyes with furious indignation for my act of trespass into his domain! Similar experience I had once in SCB Medical College as well. I was Additional Chief Secretary. My wife was hospitalized for a few days and I was attending on her. One day, early in the morning I went out of our room to have a walk. While passing through a ward of indoor patients I encountered a yelling man selling newspapers. I stalled his progress and asked him to go out. Surprised, he looked at me with an air of defiance. His demeanour conveyed that I should not interfere in his domain. Later I shared my experience with Dr Ratnakar Das, the Superintendent, who had been trying to bring in order in the campus. He had promised to take action. I remember the sense of disbelief of a junior colleague who during his tour to a District far away from Bhubaneswar had discovered that an employee in a government agriculture farm had rented out a portion of the farm land to a trader for making bricks. I remember a surprise visit to a Primary Health Centre with the Director of Health Services, Dr Jhasketan Sahu . It was not far from Bhubaneswar. I wanted to see the labour room. It was locked. I wanted the room to be opened. The man with the key was not available. We waited. He arrived. The dark room smelled of long neglect .The bed was full of cobwebs. The unkempt bed had looked to me as the burial ground of the dreams of many young expectant mothers of my own state who would have dreamt of safely delivering their babies and becoming proud mothers under the care of a caring government. Raj Kishore Bhujabal, as Chief Secretary, was keen on overall improvement of the Capital Hospital. I was Finance Secretary. He had been the Health Secretary and Finance Secretary in the past. He discussed with me. I accompanied him to the Capital Hospital. We went round. One room was smelling. We peeped in. People had defecated on the floor and the entire floor had been covered with human excreta.
Government institutions and programmes need to be regularly supervised. Touring of senior officers must be purposeful and regular. Heads of Departments must visit field programmes for most days of a month. Sadly these areas are not receiving due attention. There has been an unfortunate but growing practice of utilising the Heads of Departments as staff officers in the Secretariat. The Development Commissioner and Agriculture Production Commissioner should make intensive field visits every month rather than attend routine meetings in Secretariat. I feel a little awkward at the occasional expression government’s concern that Secretaries to Government are not touring the Districts allocated to them. This does not seem to be the appropriate approach. Revenue Divisional Commissioners should conduct intensive and quality touring in their jurisdiction.
Application of talent brings in handsome dividend; non application great loss. I would cite a few examples. Some portions of the bridge on River Tel were washed away by high floods in 1977 whereas the Railway Bridge constructed much earlier was not affected. I had an occasion to examine the relevant records while I was the Additional Secretary in the Planning & Coordination Department. Deficiency in investigation and designing of the project was detected. The foundation of some of the wells of the Bridge was found to have rested on calcareous rock. Proper investigation of the site should have avoided the washing away of the bridge.
I remember an interesting incident told by Pravat Misra , the Engineer in chief of Water Resources Department. This was about his interaction with Mr Freestone, World Bank Consultant on the Subarnarekha Project. Mr Freestone had reservation on the authenticity of the peak flood volume measurements for the River. At two places the volume had been measured; at Mango Bridge, in Jamshedpur and at Ghatsila, downstream. The volume measured downstream strangely was lesser. Pravat Misra explained to him why this could have happened and had suggested that the reading at Ghatsila should be acted upon. The current measuring instrument lowered from the deck of the Mango bridge into the flowing Subarnarekha could have drifted away on touching the surface of the water in view of the swift current and would not have gone into the desired depth of the River for accurate assessment of the average velocity. Recording of the velocity on top layer of the flowing River could have led to high recording of the peak flood volume.
River Subarnerekha is an interstate River. 45 Thousand million Cubic metre (TMC) of water of the River has been apportioned among erstwhile Bihar, Orissa and West Bengal. Orissa’s share is 12 TMC; West Bengal gets 1 TMC and the rest is for erstwhile Bihar, now Jharkhand. The Project included a Dam at Chandil and a Barrage at Galudihi. A link canal, about 52 kilometres long, would carry share of Orissa’s water to our state. The water would feed three Reservoirs at Haladia; Jambhira and Baura. For moderation of flood in the River in Orissa, we had paid around Rs 60 crore to the then Bihar Government to create a flood reserve of 47000 hectare metre (hm) in the Chandil Dam. Later, we realised that the this storage would really not ensure moderation of flood as the large catchment below the Chandil Dam would always push a lot of water during monsoon to create flood in the state. Our Engineers therefore suggested that 30000 hm of water out of the 47000 hm kept as flood reserve should be made available to us for irrigation. By the time this water reaches our territory we would get, after transmission loss, around 24000 mh that would ensure irrigation of 34000 ha in our state and there would not be any need for creating the Reservoir at Baura. In other words, the space we created at our cost at Chandil would be utilised as substitute for the Baura reservoir for which we would have spent about Rs 200 crores. This is a good example of the benefit that accrues to the state through application of talent available with the government.
Another example comes to my mind. This also relates to the same Project. For many reasons, execution of this multi state project was getting delayed. Our farmers in Mayurbhanj District were in need of irrigation. Nabard’s fund for creating rural infrastructure was used to create a truncated facility on River Jambhira (known as Jalaka River in Balasore) pending creation of the full potential through the Subarnarekha Project. Even a truncated Dam and a spillway would need a lot of money- much more than what was available from Nabard. A spillway of a capacity of 514 cumecs would cost around Rs 37 crore. Pravat Misra, the then Chief Engineer of Subarnarekha Project, thought of a different design deriving inspiration from the concept developed by a Russian Engineer Dr Pradivets. The step spill way with a capacity of 514 cumecs was designed and could be completed with an expenditure of only Rs 1.8 crores. I had an occasion to see the spillway, the first of its kind in our state. The historic flood in 1999 had had no adverse effect on this structure. Jambhira truncated irrigation facility could be dedicated to our farmers most economically through the talent and skill of our Engineers.

*****************

“YOGAH KARMASU KAUSHALAM” SHOULD BE THE MANTRA OF A CIVIL SERVANT.

2011-03-17T15:23:00.000+05:30

In civil service, wisdom has not been the winner always. On many occasions it has been a game of “hide and seek” between wisdom and expediency and wisdom has been humbled. There have been many cases where expediency and wisdom looked the same. I remember an interesting discussion between Mr. Somanath Som as the Forest Secretary and Mr. Sudhanshu Bhusan Mishra, Secretary to the Chief Minister. In fact one always learnt by listening to Mr Som arguing. He did it with gusto and style. At the end of it, even if he was overruled, he would end up with a benign smile. I had never seen him conceding without a fight even if the discussion was with the Chief Secretary. In this case that I am referring to, I found him agitated over a matter related to some crocodiles in a pond in Nandan Kanan. The alligators and their habitat were part of a research project. The project was financed by the central government and was under close technical supervision. Som’s worry was that the contemplated visit of some important persons, unconnected with the experiment, to watch the alligators as curious tourists with possible coverage of the visit by movie and still cameras and the resultant unscheduled footfalls in the vicinity of the pond, would affect the behaviour of the alligators and compromise the integrity fundamentals of the scientific project. I do not recollect if the visit was called off in view of the reservations expressed by Mr.Som. I however felt that Mr, Som was right. VIPs in India are known for their intrusions. Don’t we find hordes of them even inside Sri Jagannath Temple during the Rath Yatra enjoying the “pahandi” ritual!!
In another case, I was a part of the game of hide and seek with Mr. PC Hota . He was on deputation with the Rourkela Steel Plant as Town Administrator and I was the Additional District Magistrate at Rourkela. The Plant authority was constructing a perimeter wall around the steel mill. The wall could not be completed as a few graves of persons who were followers of the GEL Church, came on the way. Intervention of the District Administration was sought for. Mr. Hota, I found, was inclined towards a course of action that the area should be cleared of obstructions so that the wall could be constructed. I did not agree. The land, I was told, had been acquired for the steel mill. I was not impressed. They were advised to avoid construction over the land where the graves existed. The wall was made by changing the alignment. No harm was made to the graves. Mr Hota even now recalls the incident when we meet in course of our post retirement assignments. He still holds that the ADM’s advice was a sound decision. Mr Hota’s persuasive capability was always handsomely aided by his oratorical prowess; but he would respect dissent. The high positions he held always sat lightly and elegantly on his head.
Yet another incident comes to my mind. This related to the government decision in 1997 regarding purchase of Hybrid Rice seeds. The programme, unfortunately, had not yielded the desired result. Rather many farmers faced difficulties. Following complaints from various quarters regarding poor performance and low productivity of hybrid seeds in the State, Government in Agriculture Department had constituted an Expert Committee under the Chairmanship of Dr. P.J. Jachuck, Principal Scientist, Plant Breeding & Genetics Division, CRRI, Cuttack to go into the details of such failure and to find out remedies. The Committee in its report found that poor yield, much below the expected level, was due to very high percentage of spikelet sterility (upto 60%) resulting in chaffy grains. It identified the lack of genetic purity of the parental line used in the seed production plots as one of the possible reasons for the poor performance.
Later, as Agriculture Production Commissioner, I had examined the case. I found that spread of hybrid rice cultivation in India during Khariff season of 1996 was very modest; only over 60,000 hectares were covered under hybrid rice cultivation in the country. Against this modest achievement, Orissa Government organized hybrid rice cultivation of a very huge area of more than 32,000 hectares in Khariff 1997 in the State without the backing of scientifically developed appropriate hybrid seeds. I had viewed that this was not a prudent decision. I had also come to a finding that one of the two varieties of seeds purchased -- variety PRH-6201 -- had not been released but was only recommended for pre-release multiplication and even by April 1999 this variety had not been released or notified. The state however had used such a variety over a large area. The other variety-- MPH-303-- did not even appear to have been recommended for pre release multiplication. Purchase of this variety was totally indefensible. ICAR had categorically stated that no rice hybrid had been recommended by them for cultivation in Orissa. As regards private hybrids, ICAR had no comments but had advised that government should use their own experience and discretion but should go for seeds based on results of authentic experiments. I found that District Agriculture Officer, Bargarh reported to Director of Agriculture about the very poor performance of hybrid seeds in the irrigated Blocks of Bargarh Agricultural District during Khariff 1997. His report described how due to pressure from higher quarters all out efforts were made by the field agency to utilize the entire hybrid seeds even by giving the seeds to farmers on credit. He had indicated that despite all efforts, there was high percentage of chaff, high incidence of pest attack and diseases and poor performance of the variety in comparison to high yielding varieties like IR-64, Lalat and Swarna. He also mentioned that farmers from irrigated Blocks were coming to his office frequently and demanding compensation.
In Khariff 1997, subsidy for medium and late varieties of high yielding paddy (HYP) seeds was about Rs.425/- per quintal; whereas the subsidy for the hybrid paddy seeds was Rs.3,330/- per quintal. One acre of paddy crop required about 30 kgs of HYP seeds where as one acre of hybrid paddy needed 6 kgs of seeds. Therefore Government subsidy for HYP seeds for acre would be about Rs.127.50 (30 kgs) and for hybrid paddy seeds, Rs.199.80 (6 kgs). In other words, with the same amount of subsidy, Government could have brought 1 ½ times the area under high yielding variety than what was achieved through hybrid paddy cultivation. OUAT’s multi location trials in Khariff 1997 revealed that Pro Agro 6201 variety yielded 49.58 Qtls./ha; whereas check variety, Konarka, yielded 46 Qtls. and BHOI yielded 55 Qtls./ha. Grow out test conducted in Khariff 1998 in Government & OUAT farms which were analysed by the Expert Committee revealed that at Gambharipalli the yield of 6201 variety was 25.3% higher than the yield of the check variety where as it was 6.23% lower than the yield of the check variety at Barchana farm. Even if we assume that the yield of 6201 was 20% higher than the HYP then also the State would have ensured a higher production of paddy in Khariff 1997 by promoting high yielding paddy with the money it spent on hybrid paddy seeds. This case therefore highlighted the desirability of informed deliberations before embarking upon ambitious programmes. Wisdom should have prevailed.
Wisdom should always be the real asset of a civil servant. In the ultimate analysis, wisdom emerges as the most reliable tool in the art of governance. That is why we were taught at the beginning of our career that skill in action is yoga--“YOGAH KARMASU KAUSHALAM”. It is another matter whether this golden truth of the Bhagabad Gita continues to be the guiding force for the civil servants.
.

********************

AGENDA FOR A VIBRANT ODISHA

2011-03-10T20:00:00.001+05:30

While some one talks about a vibrant Gujarat, it makes sense. Some of us even can feel the vibrations of development in Gujarat from a distance. If someone says that there is also a vibrant Odisha; even an ardent lover of the state would blink his eyes in disbelief. If he is a robust optimist he would most likely tamper his reaction with caution and would be hesitant to visualise a vibrant Odisha even as a distant possibility. The state has had uncertainty on mega industrial projects over years .The government machinery is busy talking about such projects while small and medium scale industries are not receiving the desired attention. Manufacturing sector is yet to receive meaningful importance. Services sector‘s performance is overstated. The state is witnessing distress and frustration induced migration of young men and women of the state on the lookout of jobs of any kind varying from working in the brick kilns in Andhra Pradesh to manual jobs of drudgery in the affluent city of Surat. We seem to cheer at the growing state domestic product and the impressive per capita income; hardly bothering to realise how illusory these figures are at the grass-roots level. If the distribution of income within a country is skewed, a small wealthy class can increase per capita income far above that of the majority of the population. Let us take the case of Barbil. Suppose five mine owners living there had an income of a thousand crores in a year and other ten thousand persons living there had total annual earnings of twenty five crores of rupees at the rate of twenty five thousand rupees per person. The total income in Barbil becomes one thousand twenty five crores of rupees and per capita income is an impressive ten lakh twenty five thousand rupees. This is a myth. What people should be told about is the per capita personal income in Odisha households. To me, a vibrant Odisha is about a situation when maximum economic development accrues to the maximum number of people. Such a vision to be a reality in a short span of time requires immediate redrawing of our priorities and strategy and our ability to implement them.
The share of agriculture in the state income is shrinking. This should be a matter of concern; not because industries and services sectors which now have a larger share of the state income should not grow. The concern arises due to the present state of our agriculture. The profile of state’s agriculture must change fast. There is no point lamenting the growing indifference of the educated youth to agriculture. Paddy cultivation may not be of interest to the young educated son of a farmer but cultivation of, say, strawberry would surely make him interested in farming. Government farms still have the traditional activities. These farms must transform to be in tune with the time. Farmers must be helped to transform farming to agri-business. Thereby, farm sector would generate more wealth and provide gainful employment to more people. Share croppers are yet to have legally recognised and enforceable status. It is a matter of concern that we are not moving fast in this direction.
India is now getting ready to ensure faster growth of the manufacturing sector. Share of manufacturing in GDP is expected to grow from about 16 per cent to 25 per cent over a period of 10 years. Government will be coming out with a manufacturing policy to facilitate this. This policy needs to be taken advantage of in Odisha. Our emphasis on chasing mega projects has slowed down the desirable growth of meaningful manufacturing activities. Development of the ports, rail and highway networks are critically dependent on the growth of manufacturing activities in the state. A new port on Odisha coast, in case “business as usual” approach to development continues, would not have enough cargo for viable operation. If more and more iron ore fines are pelletized and transport of ore is increasingly made through slurry pipe-lines, truck operators and drivers would have much less demand in the state. We must produce more of manufactured goods.
We need to promote services sector more comprehensively. Growing urban centres have promoted services sector all over the world. We have been extremely incompetent in developing meaningful urbanization in the state. It is unfortunate that we have not developed even one hill station so far in Odisha though we love to describe Daringbadi as the Kashmir of Odisha. Government, unwittingly, seems to have handed over our picturesque hill ranges, peaks and jungles to the extremists. We must create urban growth centres in different places which are known for their natural beauty and splendour. These centres should not have tourist facilities in shape of a dirty tourist bungalow of the government; but should have modern residential units; hospital; residential schools; swanky hotels. Besides, our ancient towns like Berhampur, Jeypore, Balasore, Sambalpur, Baripada, Parlakhemundi etc must have comprehensive urban regeneration. These steps would make our services sector thrive and open thousands of job opportunities. This would generate new demand on agriculture too. These developments would also trigger growth of tourism. We should have a cruise terminal developed through competitive bidding. Such a terminal would facilitate arrival of tourists through sea route. Bali Harichandi seems to be an ideal location for the cruise terminal. Thousands of tourists from Kolkata would love to use this facility. International tourists would also be interested to visit the state in liners.
A vibrant Odisha is about a happening state where wealth is created in plenty but in an equitable manner. A vibrant Odisha would mean a situation where conspicuous consumption does not coexist with acute deprivation. A developed state calls for an enlightened governing apparatus. It may be a good idea to introduce a feedback folder which a visitor to any government office would use to record his level of satisfaction after the visit. The folder should be scrutinised by the next higher authority to get a feel of the quality of work in various offices. Working of government needs to be more and more transparent. The reach of our government is far and wide and the number of government functionaries is quite large. The only way to ensure that the system serves the people is by keeping the system within the fetters of law. Such an arrangement demands least recourse to discretion. If decisions taken at the highest level are not impartial, or bestow favour on some at the cost of more deserving ones; then such functioning only unleash cruel ripples all over the system where even a small functionary feels encouraged to act whimsically. This is sadly what the state is presently witnessing where corruption is raging as wild fire. Widespread disillusionment has created an ambience in which extremism finds a convenient incubator. Poor governance, greed of important players and stark favouritism are factors, which would increasingly pose as roadblocks to meaningful development that is essential to create a vibrant Odisha.
*******&*******

2011-03-05T15:12:00.000+05:30

RESCUING THE DISTRICT COLLECTOR--- ABJECT CAPITULATION OR BOLD INITIATIVE?

2011-03-02T07:47:00.000+05:30

The District Collector of Malkangiri, R Vineel Krishna, chose to walk the extra mile to reach the most marginalised Aam Admi, living in difficult areas in the midst of jungle and hills with little amenities, and to address their needs. Most likely, he had no stronger official directive to do so than his sense of duty. Going by the prevailing style of governance which makes little distinction between a performing civilian and a non performing one, it was hardly expected that Krishna would ever have been accused of dereliction of duty if he had chosen not to visit the cut off area of his District even once during his incumbency. Have we heard of any Collector in the last ten years having been punished for staying away from his District and spending quality time with right people in the City of Indulgence that is Bhubaneswar? In fact a nonperforming official today is more likely to receive favour if he has right connection. In Krishna’s case, however, priorities could have been different and nobler. Government’s response to the crisis when Krishna, the District Collector, and Majhi, the Junior Engineer, were taken hostage by Maoists in the cut off area of Malkangiri District on the 16th of February, 2011 was exuberant..
The rescue operation set on motion, however, had some special features. The state police seemed to have been kept out of it except for certain logistical support activities like movement of some prisoners from one jail to another. Ministers seemed to have had no role in the operation either. Some may feel that the police chief could have been kept out of the team of core operators because of the failure of the police and its intelligence wing to anticipate such kidnapping. The District Collector, known for his sincerity and enthusiasm, should have been provided discreet security cover, particularly when he was touring the cut off areas. Did the government finally wake up to the growing unprofessionalism of its police organisation? Or was it the result of voluntary confession of the police that it just does not have the stomach or ability to fight insurgents? It could be a possibility that the government has redrawn the priorities of the police so that police would have more time and resources for other activities
Krishna’s captors organised a public meeting in Tenduliguda village on the afternoon of the 24th February which was attended by more than a thousand persons. At the meeting, Maoist leaders delivered speeches on development and mining issues. Following this, Krishna was taken to Chitrakonda, about 80 km away, from where he reached home. The rescue operation had looked impressive to me; but, in the light of some revelations in the press in the meantime, I would now moderate my assessment. There are reports that the District Collector, in captivity, was in touch with the outside world. Some reports even indicate that his comforts during captivity were not compromised with in the absence of tooth paste; tooth brush and shaving-kit. Video clipping of the people’s court also displayed the stoic, clean face of the Collector. It is most likely that Government was aware that captors were not harsh towards the Collector. Therefore Government should have realised that the captors would not harm him. Why then did the Government react the way it did? Why was there complete acquiescence in whatever demands emanated from the mediators? Maoists had kidnapped government officials elsewhere in the past. No state government had responded the way Odisha government did. The decision on stoppage of combing operation should not have been taken unilaterally without consulting the centre and the neighbouring states. Prime Minister Manmohan Singh had described left-wing extremism as the gravest internal security threat and had called for a nuanced strategy to tackle the Naxal violence. State government, by suspending combing operation in the affected areas, seemed to have differed from the perception of the Central Government about the Maoist menace. The state government’s action conveyed a feeling that no area of the state now is afflicted by Maoist-menace. Why then did the Chief Minister plead for central force in the past? Why did the Chief Minister plead for inclusion of more Districts as Maoist-affected? Will the Districts, now receiving central grant meant for Maoist-affected ones, lose the central funds?

Political considerations could have influenced the state government. Since the decision marked a major policy shift, this issue should have received the approval of the Cabinet. Is the ruling Party getting ready to enlist the Maoists’ support for the next Panchayat election? Is it the new political strategy to fight the BJP and the Congress Party in areas where these Parties have good popular support? The new stand on left-wing extremism could as well be a move to project Naveen Patnaik as the friend of the proletariat and the underdogs of society. Perhaps such new attire was expedient to counter the increasing popular perception that he has been promoting industrial houses far too long. If captains of industry take note of this transformation, they may perhaps like to have a closer look at the state before investing. During negotiation, the concerned civil servants should have exhibited greater circumspection because the stakes were much greater than mere securing release of the officials.

A bridge in Kashmir called Aman Setu (Bridge of Peace) connects Srinagar with Muzaffarabad of Pakistan Occupied Kashmir and facilitates the bus service 'Karwan-e-Aman' (Caravan of Peace). If the state government wanted to negotiate with left-wing extremists then it could have made them agree to construction of an “Aman Setu” for the cut off area to ensure early construction of the bridge over the Gurupriya River to connect Janbai with Chitrakonda in Malkangiri District. Maoists have resisted construction of the bridge for years. During the dialogue between the state government and the Maoists through their chosen mediators, the state government should have made the Maoists agree to shed violence and the government would have halted combing operation as a quid pro quo. Then the MoU would not have appeared as an instrument of capitulation. That would have made everyone believe that Odisha’s policy towards left wing extremism is indeed a bold one and not dictated by expediency.

People of the cut-off area do not ask for the moon. Their expectations are modest; they want to live their humble life with dignity. They want more motor launches to resume service, BPL cards, houses under Indira Awaas Yojana for all families, Primary Health Centre and High School in every Gram Panchayat, cessation of police atrocity leading to abduction of tribals in the name of fighting Maoists. They need electricity and potable water. After securing release of the abducted officials, Government should be more responsive and meet such demands on a war footing. Government should urgently put a pontoon bridge over the Gurupriya River. These would make extremist movement lose its appeal in the region. However, going by the performance record of the government, one does not foresee appreciable improvement of the situation in the cut-off area. In all probability the bonhomie between Maoists and the BJD would be made use of for gaining political mileage. Issue of economic development would take a back seat as has been the case so far. I would love to be proved wrong.

*****************************

YES MINISTER IS GOOD BUT NO MINISTER IS SOMETIMES BETTER

2011-02-24T19:52:00.000+05:30

On promotion to the super time scale of the IAS, I was posted as the Chairman of the State Civil Supplies Corporation. The office was located in a busy commercial area of Bhubaneswar. It was a strange feeling to spend hours of a working day in my office room close to a show room, displaying new cars, and a car servicing-station. I missed the quiet, intellectual environment of the Planning & Coordination Department of the Secretariat. After a couple of months I got an additional responsibility and joined as Secretary of the Food & Civil Supplies Department and moved to the Secretariat. Kishore Chandra Patel was my Minister. We faced shortage of rice in the state and government felt that the Corporation should purchase rice from the market and have a reasonable stock of rice to meet any difficult situation. I visited a few markets in Andhra Pradesh and elsewhere with a team of officials in this connection. Many traders and middlemen were active in Bhubaneswar eager to sell rice. Some people would meet me and offer good quantity of rice. I would take note of the sample and the rate. Talk of huge purchase of rice and favour shown to traders began spreading and there was a lively debate on this issue in the Legislative Assembly. Minister was explaining to the best of his ability the prevailing market situation and the efforts of the government to ensure availability of rice in good quantity in different parts of the state. Able legislators from the Opposition however were determined to get at the truth and know if rice had been purchased from traders and if so the quantity purchased and the price paid. Minister needed details and hurriedly I scribbled something on a piece of paper and handed it to a waiting messenger on the floor of the Assembly who gave it to my Minister who thereafter informed the House that no rice had been purchased and no favour had been shown to any trader or middle-man. There was cheer in the Treasury Bench. I noticed from the officers’ gallery the beaming smile of the Minister. I also noticed that another Minister was looking smilingly and approvingly at me. I had no previous acquaintance with him. He was Basant Kumar Biswal who was then the Minister of Housing & Urban Development. He was reputed to be a very powerful Minister. After a brief stay in the arena of food and civil supplies, I moved as Secretary of the Housing & Urban Develoment Department. Basant Kumar Biswal was dynamic; believed in performance and always seemed to be in great hurry. He had his admirers and detractors. He was hilarious and generous with friends but was at his best while handling critics and cynics.
Later, while I was Chairman of Orissa Mining Corporation, I had an interesting interaction with Basant Kumar Biswal in an exclusive meeting in the presence of the Chief Minister, Janaki Ballav Patnaik. This related to the Klockner case. He wanted my views on the desirability of going in for an amicable settlement with Klockner instead of fighting the case in England in an arbitration proceeding. I expressed my disinclination for any negotiated settlement. “I would prefer to fight the case”, I said. “What happens if you lose”? He asked me. “We would not lose as our case is strong” I said and explained to him about the case. He said while laughing “You have to pay from your pocket if OMC loses”. I smiled and stuck to my views. CM was a quiet listener, watching and had only said “You argued like a lawer”. The discussion ended there. This incident appears to me relevant today because it illustrates a situation where a civil servant must follow the provisions of a contract rather than deviate from it and take recourse to an informal modality to arrive at a settlement to a dispute. Had I agreed to a negotiated settlement, government could not have defended such a decision.
The case related to an agreement of OMC with M/s.Klockner & Co (Klockner), West Germany in 1982 for sale of 2,50,000 MT of charge chrome that will be produced by OMC Alloys, a wholly owned subsidiary of OMC, in the international market through Klockner. This agreement was valid for a period of 5 years or till the quantity was sold in the international market through Klockner. Klockner would locate a buyer in the international market, conclude a contract with it and send the concluded contract to OMC for acceptance. Klockner was entitled to a commission of 4% on FOB price for the shipped quantity. About 1,08,000 MT of charge chrome could be sold through this arrangement till September,1991.
OMC Alloys was merged with OMC with effect from 31.8.1991 and became the Charge Chrome Division of OMC. Government of Orissa acquired the Charge Chrome Division of OMC through an Ordinance on 24.09.1991 and subsequently sold the plant to M/s.TISCO on 27.09.1991. OMC was therefore incapable of performing the agreement for the balance quantity. Sometime in 1992 Klockner made a demand on OMC for supply of the balance quantity and the commission it would have earned. It also indicated that it would move International Chambers of Commerce, London for realization of its lost commission by invoking the arbitration clause of the agreement. OMC filed a suit in the Sub-Judge Court of Bhubaneswar for restraining Klockner from filing arbitration dispute before the ICC at London. OMC had taken the stand that since Klockner had not concluded any contract with any foreign buyers after September, 1991 nor forwarded any concluded contract for acceptance to OMC and no commitment of OMC had failed, the claim of Klockner could not be treated as a dispute arising out of the agreement.OMC could not get relief in the Court of The Sub-Judge. Klockner moved ICC and filed claim for the opportunity loss on account of 4% commission on the balance quantity. The arbitration proceeding was to be conducted under English Laws and in London. OMC made an appeal in the court of Additional District Judge, Bhubaneswar; but lost. OMC filed appeal in the Hon’ble High Court and the case went in its favour. Klockner filed an appeal by way of special leave petition (SLP) in the Hon’ble Supreme Court. The Hon’ble Supreme Court disposed of the case during 1996 advising OMC to appear before the ICC to defend its case. Klockner thereafter approached Government of Orissa and OMC for an amicable out of court settlement of the Claim. OMC did not agree to the proposal and it was decided that OMC would appear before the ICC at London and would await a pronouncement of the judicial forum. The single arbitrator Mr. Francoi Knoefler awarded its judgment in favour of Klockner. OMC was directed to pay the claimed amount of around Rs.21 crores. Klockner thereafter suggested to the state government and OMC for an out of court settlement. The proposal was accepted. Government constituted a committee comprising K.B Verma, J.P. Dash and me for negotiating with Klockner. It was settled at 2 million dollars which was around Rs.8.5 crores. This was approved by the Government and the amount was paid to Klockner.

**********************

NEW PORTS IN ODISHA--- TRANSPARANCY WOULD BENEFIT THE STATE

2011-02-17T04:08:00.001+05:30

India’s ports today have a capacity of one billion tons of which the major ports account for about 600 million tons. Ports in the private sector are increasing their share of the country’s sea-borne traffic. Only ten years ago, such ports accounted for only 5 % of the sea-borne cargo; but their share increased to 27% in 2008-09 and reached 34% in 2009-10. In five years their share is expected to be 50%. Government is making efforts to increase India’s share of world trade to 3.25% by 2020 from 1.64% in 2008. About 95% by volume and 70% by value of the country’s international trade is presently carried on through sea. India’s coast line of over 7000 kilometres has twelve major ports and about two hundred minor ports. Capacity of major ports was 20 million tons in 1951.Major Ports handled 562.74 million tons of cargo in 2009-10. Paradip handled 57 million tons. Central Government are contemplating to develop two new major ports, one on the east and the other on the west coast. The average turnaround time for ships at Indian ports was 3.85 days in the year ended March 31, 2009, compared with 10 hours in Hong Kong. The pre-berthing waiting time at major ports was ten hours in the year ended March 31, 2009. Maritime Agenda released on January 13, 2011 envisions India’s port-capacity at 3,200 million tons by 2020.
Major ports are moving towards capacity addition as per the consolidated Port Development plan of the Government of India. As per this plan, the total traffic in Major Ports would reach 1595 million tons in 2025-26 when these Ports would be equipped to handle 336 million tons (mt) of POL (161); 140 mt of iron ore (96); 190 mt of Coal (75); 680 mt of Containers (84); 37 mt of Fertilisers (15) and 213 mt of other cargo (81). Figures in brackets indicate the forecast of cargo for 2007-08. This plan indicates that the real surge in traffic is expected to be in the area of container traffic. Major ports handled only 6.60 million TEUs in 2007-08 --- Nhava Sheva’s share being more than 61%. Container cargo represents only about 30% by value of India’s external trade as against the global containerized cargo average of 70-75%. At the current rate of growth, India's container throughput is estimated to be around 21 million TEUs per year by 2016. China, on the other hand, has already constructed capacity at its ports to handle more than 100 million TEUs per year. The maximum amount of cargo per TEU is approximately 21,600 kilograms. India just built her first single operator container terminal at Vallarpadam which is the first such terminal in the country to operate in a special economic zone. The terminal makes Kochi a key centre in the shipping world reducing India’s dependence on foreign ports to handle trans-shipment. The terminal would be handling one million TEUs by end of 2102. Its capacity would ultimately be 5.5 million TEUs Strategically located on the main east-west global shipping lines and offering draft of about 16 m, Cochin is poised to develop as the premier gateway to India and also is offering an alternative to Sri Lanka and Singapore for containers being transhipped for the Indian market. Another noteworthy development in the port-sector has been the growth of Ennore Port. This is the first corporate major port which has moved from a coal handling port, as conceived originally, to an all cargo port having the potential to develop as a hub port of the eastern coast. The inauguration of the car terminal at Ennore Port in January,2011 is a testimony of its capability for diversification. Besides a terminal for cars, the port also got equipped with the Common User Coal terminal and Iron Ore Terminal.
Greenfield ongoing port projects are mainly in private sector. In Major Ports too private sector is increasing its presence through PPP. It is actively participating in port support and logistics activities. Mundra Port and Pipavav are established private sector Ports. Greenfield Ports commissioned recently include Krishnapatnam and Gangavaram in Andhra Pradesh; Karaikal in Tamilnadu and Jaigarh in Maharastra. First phase of development in these ports is complete but these ports are going ahead with subsequent phases with huge capacities. Some of the green field port ventures expected to be commissioned in near future include Dhamra in Odisha; Adani(Petronet), Dahej’s solid cargo port terminal in Gujarat and Dighi port in Maharastra. Private port ventures, however, have not always been a success story. Problems like land acquisition; environment clearance, delay in connectivity projects have cropped up.

In order to improve efficiency, productivity and quality of services as well as to bring in competitiveness in port services, the port sector has been thrown open to private sector participation. The Major Port Trust Act, 1963 permits private sector participation in major ports .Foreign Direct Investment (FDI) upto 100% under the automatic route is permitted for construction and maintenance of ports and harbours. Private sector participation has been allowed in a variety of ports services which includes construction and operation of terminals/berths, warehousing/storage facility, dry docking and ship repair facilities.

Construction of two Dedicated Freight Corridors (DFC) has been taken up in the country which has a bearing on quality of freight movement. Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 90 billion covering an overall length of 1483 KMs between the political capital and the business capital of India .This corridor would be passing through six States - U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai. This DFC envisages a high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives. The Delhi - Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor. This corridor will be equipped with an array of infrastructure facilities such as power facilities, rail connectivity to ports en route etc. This project incorporates Nine Mega Industrial zones of about 200-250 sq. km., high speed freight line, three ports, and six air ports; a six-lane intersection-free expressway connecting the country’s political and financial capitals and a 4000 MW power plant. Several industrial estates and clusters, industrial hubs, with top-of-the-line infrastructure would be developed along this corridor to attract more foreign investment. This offers immense opportunities for development of an Industrial corridor along the alignment of the connecting infrastructure. A band of 150 km (Influence region) has been chosen on both sides of the Freight corridor to be developed as the Delhi-Mumbai Industrial Corridor. The vision for DMIC is to create strong economic base in this band with globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investments, real-estate investments and attain sustainable development. In addition to the influence region, DMIC would also include development of requisite feeder rail/road connectivity to hinterland/markets and select ports along the western coast.Work for Eastern Dedicated Freight Corridor has commenced. In the first phase of this mega project, work is being started for laying 25.41 kilometres of new dedicated line from Dankuni to Chandanpur. Eastern Corridor will finally traverse a length of about 1806 kilometers from Dankuni to Ludhiana. The freight corridor is being designed for a maximum speed of 100 kmph for train operation. The Eastern Corridor extends from Dankuni to Ludhiana and Khurja to Dadri. It will pass via Asansol, Dhanbad, Sonnagar, Khurja and Saharanpur. It will be electrified single line on the Ludhiana-Khurja portion and electrified double line on the remaining portion. India’s largest infrastructure project would also help segregation of passenger and freight traffic on these routes. We have to address the issue of connectivity of the places identified for port. The freight corridor now being executed by the Railways from Delhi to West Bengal would be a convenient channel for transport of export-import cargo.

We should look at the prospects of new Ports on Odisha coast keeping in view the macro environment as outlined above. Paradip Port is the only major port on Odisha coast. Despite being in operation since 1966, the port is still to have satisfactory connectivity with the hinterland. Nor has the hinterland developed industrially even reasonably to ensure intensive use of the Port. In respect of Paradip, the traffic projection is 163.30 mt of cargo in 2025-26. Deep draft potential of the port may not be a great advantage if poor internal logistics system, long procedures and delay in capacity addition continue to plague the Port. High costs of operation may be another area of concern. Poor organizational structure and inefficient port labour; low level of mechanization need to be addressed. It could act as a gateway to landlocked regions; but low availability of port areas may pose a constraint. Though fifteen locations on the Odisha coast have been identified as suitable places for Ports, the hinterland seems to justify viable operation of only about three public ports besides a few captive ports. While Dhamra Port is almost ready for operation and Port at Gopalpur is being made, progress is likely in case of captive port at Chudamani and of POSCO. Only Paradip and Dhamra ports are most likely to operate as viable public ports on Odisha coast for quite some time. Other ports may not be viable unless there is appreciable industrial activity in the hinterland or on the coast. We should work towards a cruise terminal at Bali Harichandi. We should also work towards integrating Paradip and Dhamra with the Eastern Freight Corridor. Paradip and Dhamra should also plan for handling Containers at an appropriate time. At the present state of economic development in the region, Kirtania and Astaranga do not look promising to develop much. People need to be assured that these ports were awarded to the best parties with satisfactory financial credentials and previous experience in establishment and running of port. It may perhaps be desirable if the Comptroller & Auditor General looks into these cases and finds out if financial prudence was maintained.

MoU route in selection of developers should not be the preferred route. This route is not transparent. It does not ensure best financial returns to the government. Nor does it ensure the selection of the best party. Proposals for port development from entrepreneurs need to be evaluated against carefully prepared pre qualification criteria. We must see that speculators do not creep in through political manoeuvring and position themselves in various locations on the coast. In the context of the lukewarm industrial development in the region, there is need for much greater care in selecting a developer of a green field port in Odisha. MoU route has relevance only in case of captive ports. For other ports the builder should be selected though open bids and preference be given to parties who are of proven competence in port development; are financially sound and can facilitate industrial activities near the port. Such a policy alone is relevant for new ports on Odisha coast. It looks intriguing that MoU route continues to find favour with Government of Odisha.

**********************

CORRUPTION SHOULD NOT BE THE SIGNATURE TUNE OF GOVERNANCE

2011-02-11T19:27:00.000+05:30

In my last piece I had highlighted the sacred duty of the civil service towards the poor and down-trodden segments of our society. While the state is witnessing a murky phase of governance in the feeding of contaminated Dal through government programme, I am sad to say that the civil service has faltered. A government that swore from the roof-top about its transparency and honesty today unfortunately finds skeletons in its cupboard. The mask has fallen and people now see the real face. A government which for years fed millions of people with contaminated food has lost moral legitimacy to remain in office. Vigilance wing or CBI should make a thorough probe to identify the culprits. The scandal is shocking. Perpetrators of the crime who supplied the contaminated Dal have not been arrested. Dal was supplied throughout the state. Vigilance organisation should have conducted simultaneous operation in all Districts of the state.
Feeding school children under the mid-day meal programme and feeding the pre-school children and expectant and nursing mothers under the supplementary nutrition programme are two important programmes of the government. These programmes must have been reviewed at the level of the Chief Minister. If the quality of the Dal being used in the programmes never disturbed the conscience of any one despite complaints to this effect being on record; people have a right to protest and point it out boldly. The purchase rate of Dal was enhanced to Rs 75 per kilogram reportedly with approval of the competent authority. Top advisors to the Government should have realised that suppliers who had made purchases of Dal when the government rate was much lower, would make huge profits by selling at the enhanced rate if they continue to supply the commodity. Government therefore should have made specific decision that for supply of Dal at the higher rate, there has to be fresh tender and no previous contractor would be made eligible to participate in the fresh tender. People have a right to know if such a decision was taken. It is rather unfortunate that Collectors were just told to take appropriate action in the matter. Since there are two feeding programmes where Dal is used, was the order enhancing rate of Dal for both the programmes issued at the same time? If not, who is to be blamed for this?
The scam has two dimensions. One relates to consideration shown by the government to the suppliers by enhancing the rate of Dal. The other relates to the cruelty of the government in ruining the health of lakhs of tender children and mothers of the state. How many cases of chemical analysis were done by the government to ensure that the Dal being used in the programmes were of acceptable standards? If regular analysis had not been made then this omission would have been flagged as a serious lapse when the implementation of the programmes was being made at the level of the Chief Minister. Reports in the press speak of concern over the role of the Chief Minister’s Office (CMO). It is highly unlikely that CMO was in the know of written complaints of contaminated pulse being supplied for the feeding programmes. If that was the case, CMO surely would have taken timely and effective action in the matter. It is also unlikely that CMO was in picture when the price of Dal was enhanced to Rs 75 per kilogram. Had it been so, very clear instructions would have issued to the Collectors. But since the issue is very sensitive and reference has been made about the CMO, Chief Minister may like to visit the issue and clear the air.
Another important issue on food relates to the availability of cheap rice to the poor people. Government seems to have faltered in this area also. Thousands of poor tribal families today do not have ration cards. No wonder many of them fall back upon mango kernel. Though the PDS Control Order, 2001 provides that the State Government shall conduct periodical checking of ration cards to weed out ineligible and bogus units in ration card, no checking for weeding out of ineligible or bogus ration cards or bogus units in ration cards has been undertaken by the state. The prescribed arrangement is that a ration card shall be valid for a period of five years from the date of its issue unless it is suspended or cancelled earlier. A ration card should be issued afresh after fresh verification of and such other checking as may be prescribed by the State Government in this regard. No such exercise has been undertaken by the State Government. PDS Control Order 2001 provides that elimination of bogus ration cards shall be a continuous exercise by the State Government to check diversion of essential commodities. Justice Wadhwa Committee has observed that this exercise has never been undertaken and hence there has been a complete failure on the part of the Government to reach at a correct estimation of BPL families in the State. The Committee has also observed that there is rampant political interference in the selection of storage-agents and retailers and all procedures are given a go bye by the department if there is a ‘political’ recommendation. Public Distribution System needs a wholesome overhaul so that the deserving persons are not left out of the benefit of the system for which the central and state governments are spending huge sums of money.

While dealing with the problems of the poor and while taking decisions affecting them, we should derive inspiration from Mahatma Gandhi’s teaching. Bapuji had said “When you are in doubt or when the self becomes too much with you, apply the following test: Recall the face of the poorest and the weakest man whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him.” I wonder if the government thought of the poorest and the weakest of Gandhiji’s description when the rate of the Dal was enhanced or reports on contaminated Dal were received from different quarters were taken note of by the government. Corruption should not be the signature tune of governance. People of the state would always expect fair-play and probity from the government.

CONTAMINATED DAL & GOVERNANCE

2011-02-01T16:28:00.001+05:30

“You are about to join the civil service,” my father had told me on the eve of my joining the IAS, “and you will have many occasions when you have to dispense justice where two parties with equal merits are pitted against each other. In such situations tilt the balance of justice in favour of the humbler.” He had also told me that the quality of governance is known by the ability of persons in government at making judicious decisions. He himself had benefitted from such a system at the very beginning of his career as a Deputy Collector in the province of Bihar & Orissa in 1936. He was posted in Ranchi when Orissa attained statehood. He was selected to join Government of Orissa solely on consideration that among the eligible officers, he was the senior most. While I was Finance Secretary, one day Chief Minister, Biju Patnaik, called me to his chamber in the State Assembly to assist him in sorting out an issue. On my enquiry on the nature of the issue so that I could have some time to think on the issue and offer him possible solutions, he said, rather vaguely, that it related to allocation of responsibilities to two senior officials. It had nothing to do with the affairs of Finance Department of which I was in charge. The officers concerned were senior to me and I would not be comfortable at suggesting something over what could have been suggested on the issue by the Chief Secretary. I therefore went to the Chief Minister a bit reluctantly but only after meeting the Chief Secretary, RN Das. I informed him about my task before the Chief Minister. RN Das told me that while both the officers were good; neither should have a feeling of having been wronged and more particularly the humbler between the two should also feel that his capabilities have been recognised. He was only pointing out to me the same golden principle of governance that my father had spoken about in 1966 when I left Bhubaneswar to join the National Academy of Administration. I met the Chief Minister; he had kept his aides away from the discussion. After talking to me, Chief Minister took a decision on the issue in his own way. Chief Secretary, RN Das, had sensitised me about yet another important principle which helps in governance. He once told me that if an officer while examining an issue—say, granting of permission for construction of a building on a piece of swampy land-- takes a stand that it cannot be granted as per the existing rules, then he should have the moral conviction to stick to his stand even if he is prompted by the highest authority to grant the permission. Instead of doing that if he succumbs to pressure and accords permission by giving a new interpretation to the rules; he should be viewed as an officer amenable to pressure. If he acted on pressure, he could have acted independently as well when he came across the issue at the first instance. In other words he had advised me to have a proactive and positive attitude to governance. While a new national programme known as Integrated Tribal Development Programme (ITDP) was launched, I was Collector in Sundargarh in 1975. Chief Minister, Nandini Satpathy was to formally launch the programme in a village near Sundargarh. A few days prior to the inauguration, I had gone to a goat market with a few officials and we bought a few goats. In the absence of a safer home for them, those animals were kept in the spacious official bungalow of the Collector. After a couple of days, a few kids were born and these cute kids would freely walk into every room of ours. It was great pleasure when the Chief Minister handed over these lively goats and the kids to the eligible families during the inauguration of the ITDP. I was happy that the animals I had bought with care and love for the poor people went to the deserving families to help them earn more income through goat farming.
Bureaucracy has to serve its clients with love and sincerity. The benefits meant for the people must go to them and bureaucracy has to ensure this. Governance cannot have any nexus with criminals. The performance of the civil service has to be commensurate with the expectations of the society. It is agonising to note that a massive government programme of feeding school children, expectant and nursing mothers would be implemented for years with criminal motivation of making profits by devilish forces of society enjoying political protection and the beneficiaries would be fed with contaminated pulses. It is shocking that the voice of protest and cry for remedy emanating from the civil society would evoke no response from the government. When the political set up is afflicted by corruption and insensitivity; it is expected that the civil service should rise to the occasion to set things right. It cannot be a mute spectator nor should it be a facilitator of mal governance. It cannot be an accomplice to the heinous crime. Decadence in governance has reached its nadir. Society needs to be saved.
Let us also take note of another disturbing and shocking development in the working of government offices. This relates to manipulation of official records. One is not sure today if the vital land records in the offices of the Tahasildars of Odisha have remained tamper –proof any more. With price of land shooting up at many places and, particularly, around urban centres, instances of illegal transfer of land including government lands are many. Has there been system-failure on a massive scale? This issue is of great importance and Revenue Department must rise to the occasion and assure the public that the system has not been compromised. For a couple of months the press has been reporting on the alleged manipulation of official records in the preparation of enabling dossier of a few officers for consideration for appointment to a constitutional post. Of the three officers who had been short-listed for consideration for the post, one had been charge-sheeted in a criminal case for certain actions while he functioned as a Secretary in a Department of a state Government. It is reported that the dossier was carefully made by omitting this period of the officer’s service and placed before the competent committee. If this is true then such manipulation could have been possible either through pressure or inducement.
Should government be run by people who like to operate as conspirators to achieve something unethical or act in an unfair manner or act with criminal intent? This is the issue that confronts the bureaucracy today. This is issue which is now disturbing the conscience of many people of the country. I call upon the bureaucracy-- that was home to me for thirty seven years-- to ponder over the couple of holy principles of governance I mentioned at the beginning of this piece of writing. Would the bureaucracy let the future of the young mothers and the tender children of the state to be ruined in order to fuel the unbridled hunger of the corrupt elements of the society enjoying political protection? I would only expect that it should stand united and be courageous enough to stem the rot.

********************************