How Odisha may Excel post Lockdown 4.0

Namaskaar

These are some top points that came to my mind for rebuilding and expanding growth of ODISHA state. Pls share your inputs as well.

1. Ration & Other Essentials Management : with the influx of native Migrant Workers, the distribution quantities and supply chains intra & inter States need to be reshuffled.
2. Employment Issues :
   • Native Migrant Workers who are going to stay back need to be given jobs. For same type of job, it will be a competition between them and their counterparts already living in Odisha.
   • Skill-sets need to be sharpened or redefined or reshuffled.
   • All these shall apply to both the organised and unorganised sectors.
3. Space Issues : may not be substantial, wherever the native Migrant Workers’ ancestral or/and self-acquired properties are already in place and litigation-free; and with most of offices going online now, in any case, Real Estate prices must be lowered now; Waste Management and Afforestation to be duly maintained.
4. POSCO and Vedanta like mega-projects : let’s try to win them back!!
5. Explore the Bay of Bengal (BOB) : for research on global climatic changes and how to better forecast the weather.
6. Seafoods : catches have to be done without disturbing natural habitats; explore advanced preservation techniques, marketing and increase exports.
7. Food Processing Units : pickles, juices, jelly, dry snacks (baddi, lia, papadd, amba-saddha etc. ) – explore advanced preservation techniques, marketing and exports.
8. Farming & Fruits : explore advanced techniques, graft varieties lawfully, better preservation against pests, bacteria & fungi, and increase exports; ensure direct reachability with Farmers & Fruit-cultivators.
9. Dairy Products and Odisha Sweets : apply the GI tags as soon as possible; better preservation, marketing and exports.
10. Deep-Sea Mining, Minerals & Natural Gas : explore BOB and its adjacent Seas but with due regard to the oceanic environment.
11. New & Renewable Energy : start windmills, install more solar power panels and explore other alternative energy sources.
12. Defence :
    •  increase presence of Navy and Coast Guards along the Odisha coastline.
    • root out Maoists with “sustained” efforts – allow them to surrender and get rehabilitated, or let them face the bullets!
    • increase R&D facilities in DRDO, Chandipur and also build similar new centres elsewhere in Odisha; these centres should be at least supportive in nature to the existing DRDOs in the country.
13. ITI and Diploma Trainings : increase various practical sessions for the youth in the state, so that they find at least some good job after they reach the age of 18; also the industries will need their tremendous support. Redefine their work rates, allowances, bonuses, pension plans, volunteer retirement plans, accident coverages, foreign training options, academic exchange programs, etc.
14. Academia :
    • implement Vedic ways of life in all Schools to enhance discipline, strength, focus and harmony in children i.e. irreligiously!!
    • encourage “fundamental” Sciences, Arts, Humanities & Commerce degrees at par with Engineering or Medical degrees; build more R&D campuses and invite foreign academia, tie-ups, etc.
    • build necessary academies like Law Academy, Music and Film Academy, etc.
15. Hospitals : increase number of quality Government hospitals throughout Odisha; do not limit things only to Bhubaneswar & Cuttack; there should be all departments including special treatment for Acid-Attack Victims, Intellectually Disabled and people affected with Rare Diseases; information databases must be maintained with other good hospitals in the country.
16. Make an all-inclusive Society : build proper & permanent shelter-homes, and good job facilities for Transgenders, Acid Attack Victims and other members of similar category.
17. Panchayats /Sarpanchs : empower them at the grassroot levels; provide them all latest information and adequate support to operate best with transparency.
18. Sea Tourism across Bay of Bengal (BOB): secure fine-weather cruise expeditions to South East Asian countries.
19. Art & Artisans (including Textiles mills) : enhance their work reachability and regularize their due sources of sustainability (including pension, allowances, etc.) from both Odisha Govt and Customers.
20. Historical Revival : of century-old temples, monuments and museums across Odisha; name or rename certain places after the state Freedom Fighters and other personalities e.g. Netaji Nagar, Baji Rout Museum, Mohd. Mohsin Music & Theatre, Ranganath Mishra Law Academy, etc.

Special Category Status of Indian States – Recent Developments

This is a topic on and off the Indian political radar, now particularly as the General Elections are scheduled in the summer of 2014.

Currently, India has 11 ‘special category’ status states. They are Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Jammu and Kashmir, Himachal Pradesh and Uttarakhand. It is usually given to states which have distinct features like international boundaries, hilly terrains, special environmental issues, different socio-economic patterns and where infrastructural investments or public services are very difficult to be implemented. And most of these states bear a large tribal or economically backward population.

The country’s apex decision making body National Development Council headed by the Prime Minister and all the Chief Ministers and Union Cabinet Ministers on board, is the competent authority to grant ‘special category’ status to a state based on a set of criteria as per the Gadgil formula. This formula was evolved in 1969 by Dr. D. R. Gadgil, the social scientist and first critic of the Indian Planning Commission. Since then, the formula has been applied, modified and re-applied because of various reasons (statistical or changing social indicators, political, financial, etc.) and in various ways.

The states which enjoy the ‘special category’ status are given 90 per cent grant as assistance for externally aided projects. For the general category states, there is usually no grant and resources flow to states as back-to-back loans.

In March-2013, Bihar’s Chief Minister Nitish Kumar had remarked “Whoever empathises with and helps backward states will come to power in Delhi“. In May-2013, the Finance Minister P. Chidambaram said that a high-level sub-committee would be constituted under the then Chief Economic Advisor to Government of India, Raghuram Rajan (now the Governor of Reserve Bank of India) in order to determine the criteria of backwardness of a state. Further, Mr. Chidambaram added “… going by whatever information that I have, Bihar will certainly qualify under the new criteria”. Assuming that the Minister rightfully pre-possessed some good data about Centre’s likely financial assistance, tax-waivers and performance-linked-incentives, I believe it were apt if the statement was made by him with certainty but only after the criteria of backwardness was re-defined. Otherwise, the statement still leaves behind a gap that may rather mean that the criteria be re-set so as to accommodate Bihar in the ‘special category’ status !

Anyhow, this gesture by the Congress-led UPA Government was interpreted as a sign of wooing Mr. Nitish Kumar away from his alliance with the Opposition party, BJP and gaining his party, the JD(U)’s support. From the aamjunta, there was hardly any amount of noticeable discussion on this deal just focussing on Bihar’s genuine needs.

In August-2013, the expert committee under Mr. Raghuram Rajan identified 10 parameters for a new Composite Development Index for the allocation of Central funds to backward states. The new index considers the rating of states on the basis of their distance from the national average on parameters including poverty rate, consumption, education, health, female literacy, urbanization, household amenities, connectivity, financial inclusion and share of SCs/STs (Scheduled Castes /Scheduled Tribes) in total population. Some states like Bihar have also insisted on the inclusion of per capita energy consumption as a measure of development. Overall, if this new index rates Bihar as a backward state, then it will definitely do the same for Odisha and few other states as well.

It has been reported that ‘while Bihar was given Rs 12,500 crore as part of a special development plan, Odisha’s eight Kalahandi-Bolangir-Koraput (KBK) districts, more backward than many of Bihar’s districts, should have received an allocation in the same proportion’. As the discussions and rallies were being held by various groups seeking the ‘special category’ status for Odisha, the Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia cited the state’s stable finances and “sound indicators of fiscal deficit, outstanding liabilities and interest payments” as reasons for non-consideration !!

Being born and brought up in Odisha, I can vouch that while the state is rich in many natural resources and abounds in several industrial potentialities, it is economically backward due to meagre or non-sustained patronage from New Delhi. Odisha dramatically boosts the national treasury through trade in various minerals and industries namely coal, iron-ore, bauxite, manganese, power, steel, railways, shipping, commercial ports, fishery, agriculture, art, craft and tourism. One of the most significant DRDOs of the country – testing of missiles, is based in this state only.

There are at least 32 primitive tribal groups (the state has 22.8% tribal population, higher than the 8.6% national average) and according to the Planning Commission, about 155 lakh people in the state are suffering from acute poverty. The literacy rate is low and infant mortality rate high. Health and sanitation issues have just started getting mobilized towards a better future. Only then, would come the next arduous task of strengthening the education sector.

It is a fact that Odisha does not have an international border but some analysts are of the opinion that the 480 km coastal line can be treated as a substitute. This gets pronounced considering massive environmental factors like the Paradip cyclone, 1999 and the recent Phailin cyclone, 2013 hitting the state from across the vast Bay of Bengal, the waters of which are known to whirl some of the most dreadful tropical storms and cyclones ! This coastal line, if not guarded properly, is also vulnerable to illegal trades and anti-social activities, including infiltration.

Though the present BJD government led by Chief Minister Mr. Naveen Pattnaik has taken good measures towards developing some areas of the state, much of the state funds are spent either in administration or repayment of huge Central loans; therefore, it is not adequate in helping all the economically affected people and developing remote areas. Inadequate solutions and non-uniform development of a region, both are largely detrimental to the inclusive concept of growth. A sustained development model, as also envisaged by world-bodies, can gradually come into the picture only at a later stage.

The demand for ‘special category’ status for Odisha was first raised in 1979, but successive governments at the Centre have not paid heed. On one occasion, Mr. Naveen Patnaik has led a 30-member delegation comprising Odisha ministers, BJD MPs and MLAs to President Mr. Pranab Mukherjee. They have submitted a memorandum and one crore signatures collected from the state voicing their concerns and demands. But any noticeable step is yet to be taken by the Central government.

Last week, the state of Seemandhra (earlier part of high-ranked Andhra Pradesh) has been granted ‘special category’ status by the Centre, as quickly as it was curved out. Whereas states like Odisha and Bihar, whose demands have been far more justifiable and long-standing, still continue to be ignored. These type of callous decisions quite seem to be linked to political bias, appeasement tactics and ploys for vote-banks. Ultimately, the citizens suffer ! One better ranked region steadily rises up the development ladder; whereas other regions, in actual needs, may still continue to falter, under-perform and remain almost stagnant for years. This undoubtedly leads to  undesirable issues of inter-state migration or over-populated urban areas where people from low-ranked states flock in search of employment and social upliftment !! Thus, it is negatively cumulative in effect.

So, when is any Central government going to think cogently and channelize the available resources in a proper direction for the long-neglected states ? In fact, not only should it provide the necessary financial grants to economically backward states but also assist them with proper and timely guidance through various advisory bodies or committees working successfully in various parts of the country. This shall expedite development in these low-ranked states and be one of the ways to compensate faster for all the years of neglected work. No Central Government should ever make the blunder of political discrimination (for vote-banks, rivalry, etc.) among states because that will create a huge social mess in the long run !

Aamjunta – What do you say ?

Similar article by aamjunta – Odisha Assam mein hai na!

Foreign Direct Investment (FDI) – A Necessity in India !!

There are arguments and counter-arguments on FDI or Foreign Direct Investment in India in the Parliament, in election rallies, in TV-debates, in newspaper articles, in general strikes in the country or Bharat Bandhs… There are obvious fears by the farmers, retailers, small-scale manufacturers, and the common man on the effect of FDI in India. Some say that FDI in India will bring major Multi National Companies (MNCs) in India which will abolish small-scale retailers and businessman. There are arguments saying that the MNCs will have a monopoly in the market resulting in a sharp rise in price of items in India. Further, there is also a fear that the country’s security – both internal and external, will be at stake due to the involvement of MNCs in Telecom, Internet, Aviation, Infrastructure, Retail, Healthcare, Insurance, etc.

Not that all the above arguments against FDI are invalid. However, with a positive mindset, we can certainly overcome such apprehensions. This can certainly be done by bringing reforms in our Judicial system, and by resetting a stronger regulator like the Competition Commission in the line of Election Commission of India or Auditor General of India. Moreover, Vigilance Commission has to be more responsive and aggressive in its activities. Along with these, the concept of Lokpal needs to be operational in India and the nature of functioning of the Central Bureau of Investigation (CBI) needs to be completely autonomous in this regard. And of course, the public (consumers) must be aware, prompt and pursuant with regard to issues and their solutions ! With a proper check-and-balance policy implemented, we can  certainly reap benefits from FDI in India. In the current economic scenario – stiff rise in corruption, lack of accountability and transparency – FDI seems to be the right answer and is a dire necessity in India.

Here are some reasons favouring FDI in India…

It is really surprising to know that only 2-3% Indians pay Income tax. Does this figure say that the income of 97-98% Indians are less than the taxable limit (INR 2 Lakh/year) ?? A serious doubt. There are many reasons to it. The first and foremost is the lack of transparency and lack of accountability in our financial transactions – be it in income or expenditure. People prefer cash transaction over card or cheque while buying any item in India. Starting from a kirana shop (local general store) to a jewellery shop, everybody prefers cash transaction and giving and taking a bill /receipt is mostly discouraged. Some feel it is a taboo to ask for a bill, and some think ‘why to pay tax and take a bill’ ? But have you ever wondered that in not asking for a bill /receipt, who is getting benefited – the customers or the aamjunta ?!? ‘No’ – they are the losers only !!!

With direct and organized marketing which will mainly result out of FDI, the financial transactions will be mostly transparent and will be accounted for. Payments will be mostly in online mode. This will not only improve the tax scenario in India but also curtail huge corruption in India. Poor customers will not be cheated… and even if they are cheated, with a valid bill /receipt, necessary complaints can be conveniently filed in the Consumer Court. The investigation process will also become  easy and quick as everything would be duly accounted.

In India, we have the wide concept of “Middle-Man” or “Agent” or “Broker”, who always demands his/her share in every deal; sometimes even more than the actual cost of the product or service, without actually doing any thing or adding any value to it. The concept of direct marketing is hardly available in India, especially in Agriculture, Medicine, Grocery and Household items, etc. Surprisingly, there are many middle-men involved in the process – from the farmer to the consumer, from the factory-worker to the customer, from the laboratory-technician to the patient, and from the poor manufacturer (workmen) to the average consumers. This not only increases the price of the items but also encourages hoarding, corruption, unethical practices in business, unfair trade dealings, and above all the big bug i.e. inflation.

As per a study commissioned by the World Bank, farmers in India hardly get anything more than 12-15% of the price consumers pay at the retail outlet for Agricultural products. The reasons being –  (i) lack of education or awareness (ii) poor infrastructure (machinery) (iii) poor storage system (more than 25% food-grains are wasted in India today due to poor storage system) (iv) poor transport (e.g. non-urbanized roads leading from the agricultural fields to the towns) (v) middle-man (market-domination). With direct marketing as expected because of FDI in agriculture, the involvement of middle-man will be minimized in the process. Both the farmer and the consumer will be benefited largely – quantitatively and qualitatively. Direct sell by the farmers to organized retailers can render them a profit about 60% higher than that via ‘mandi‘ (a big un-organized wholesale /retail market in India) or the middle-man ! This will also check inflation of food items. Moreover, FDI will also ensure adequate storage facilities for food items, improve infrastructure scientifically and transportation facilities.

Like Agriculture, Retailing in India also requires FDI and organized marketing. The quality of the products will be improved and at the same time the price of the retail items will reduce severely. Moreover, it will also generate employment in India. With India’s traditional family system, culture, population and needs, the small retailers will also remain fully functional… but with enhanced accountability – in services and products. It will create a healthy atmosphere for a sustained competitive market.

Other than Agriculture and Retail, FDI will also benefit India to improve its Telecom penetration, Internet affordability, etc. At present, Broadband Services are mainly available in cities only. With better infrastructure and technology, it can be expanded to villages or rural areas at a lesser cost. Growth of Telecom and Internet in India will lead to better Governance, Healthcare, Insurance, Education, etc. This will ensure more and more participation of the common man in day-to-day services or the Public Services of the government. All services can be improved and a better lifestyle can be provided to the common man.

With FDI in Healthcare and Insurance, better care facilities can be provided at a lesser cost in the villages and expert advices can also be effectively delivered through e-health programs. Cost of Medicines will also come down drastically, if the system of generic medicines is adopted in India. In any case, with no middle-man involved, the prices of medicines can be brought down at least by 15-20%. Awareness for insurance schemes – be it life insurance or crop insurance or health insurance – will also greatly benefit the people in general.

What we need is very simple – accountable and transparent services at a better price with growth-oriented policies; create more jobs and provide better services. Political parties – ruling or opposition – must explore maturity levels in understanding the various issues by discussing and debating these in the Parliament, and not on the streets and election rallies ! Nation-wide or state-level strikes must be discouraged outrightly as these activities often spread the wrong message to the unaware folks. Parliament can introduce or change Laws and Institutions such that things can be improved to a larger extent in the interest of the common man.

Many may differ regarding the implementation, policy and the limits of FDI in various sectors. But if FDI brings organized market, with accountability and transparency, then it should be definitely welcomed in India, without any politics.

Recently (May,2013), the Supreme Court of India has aptly remarked that ‘Consumer is King‘ !!!

So, let the consumer decide…

Aamjunta – what do you say ?