Thursday, October 4, 2012

Central government is planning to sell surplus government land





It is quite disturbing to know that the Central government is planning to sell surplus government land to generate cash to ease financial pressures based on the suggestion by the Vijay Kelekar Committee on Fiscal Consolidation. Vijay Kelekar, by all means, is an agent of crony capitalists, who are in great hurry to loot the natural resources of the country with the support of dishonest politicians and corrupt bureaucrats. Already the scarce natural resources of the country have been looted by crony capitalists with the active support of corrupt politicians and connivance of bureaucrats. The country is reported to have lost lakhs of corers of rupees in the allotment of mining rights ( especially iron ores, copper deposits and bauxite and so on), assignment of coal blocks, allotment of oil/gas blocks, permission for granite quarrying, issuing sand mining rights allocation of spectrum, ect. The complaint is that Dr. Manmohan Singh has been keeping silence over the organised looting. But many also believe that he is not a silent spectator, but an active participant in the scams, particularly in the coal-gate scam, which has caused an estimated loss of about Rs. 1.86 lakh crore to the exchequer and huge amount as bribe to politicians and bureaucrats. Appropriate assignment of the natural resources could have fetched hundreds of thousands crores of rupees to the central and state exchequer, which could have been used to promote investment for economic development of the country and to provide welfare measures to the down-trodden people. In addition to looting huge amount, illegal and unscientific mining of scarce minerals, it has caused colossal damage to environment and ecology of the nation. It has already begun to have an adverse impact and unless there is a check, the country will enter a calamitous zone of environment degradation. Now the rich and powerful wants to grab as much of the nation’s wealth that they can lay their hands on. They have been lobbying and putting pressure on the government for quite some time to put the land under the control of the government as well as public sector enterprises for the use of private sector either by direct sale or on long lease particularly in the metropolitan cities. The politicians and bureaucrats seem to be too happy to allow them to grab lands. Today, in India, the major hurdle for rapid infrastructural development and industrial progress as well as implementation of public housing schemes is the non-availability of suitable land. Land is a scarce resource and once it is alienated and handed to private individuals/organisations over public interest, the government will have to chuck out huge amount for the acquisition of land for public purposes. One estimate reveals that more than 5 lakh acres of land will be needed for industrial, infrastructural and housing requirements in urban areas. The land can be used for the above public purposes rather than handing over to land tycoons.
Land is a scarce resource and once it is alienated and handed to private individuals/organisations over public interest, the government will have to chuck out huge amount for the acquisition of land for public purposes. Estimates reveal that more than 5 lakh acres of land will be needed for industrial, infrastructural and housing requirements in urban areas. According to conservative estimates, at present, nearly 50,000 acres of surplus land is with various government departments and public sector undertakings such railways, shipping, defense, posts, airport authority, etc., besides 3.0 lakh acres possessed by port trusts. These lands could be utilised for industrial purpose, infrastructural facilities, and social housing, besides for constructing offices for central and state governments as well as local bodies.
Industrial Purpose:  Availability of cheap and suitable land is the foremost factor in the establishment of industries. In the past, land was not a limiting factor and the government was also able to allot adequate land for industrial purposes. While cheap land is still available, suitable land at strategic locations has become not only scarce but also exorbitantly costly, besides there is public resistance to the establishment of factories in certain localities. Therefore finding adequate land at affordable cost has become a serious issue. The availability of suitable land for industries will become a much more serious problem due to rapid population growth and urbanisation. It is estimated that thousands of hectares of developed land will be required for industrial purposes in India in the next two decades. Therefore, the government can make use of the surplus land   available with the government departments, public sector undertakings and port trusts for building industrial estates, industrial parks and special economic zones.
Infrastructural Development: Major hurdle for adequate infrastructural development is lack of suitable land. When major development works are undertaken acquisition of land becomes the greatest problem. The surplus land   available with the government departments, public sector undertakings and port trusts  can be exchanged to the  land  owners for the land acquired from them for development projects. Moreover, cross the country, there have been reports of grain going to waste for want of proper storage facilities while hundreds of thousands continue to starve.  Hundreds of thousands of tonnes of grain continue to lie in the open and rot due to lack of storage facilities. Referring to CPI(M) member Ms Brinda Karat showing samples of rotten wheat and rice in the House, the  then Finance Minister, Mr Pranab Mukherjee, said in the Rajya Sabha, “I do admit.” He also agreed that the country needs to create a big storage capacity as the food grains production has grown fast in the wake of remunerative prices given to the farmers. Therefore, of the surplus land   available with the government departments, public sector undertakings and port trusts may be allotted to Food Corporation of India for building godowns to store food grains. Such lands can also be used for cold storage facilities for preserving vegetables and fruits.
Public Housing: At least 80 million people are homeless in India despite the country growing at a high rate. Homelessness is the condition and social category of people who lack housing, because they cannot afford, or are otherwise unable to maintain, a regular, safe, and adequate shelter. The number of people living in slums is around 93 million in 2011. Some of the problems leading to homelessness include: lack of affordable housing, unemployment and poverty, and high cost of land and building materials. Therefore, the surplus land   available with the government departments, public sector undertakings and port trusts can be used for housing purposes for the government servants as well as the public, which will lead to building of adequate number of affordable houses. Moreover, recently, the government announced its plan for making Indian cities slum-free within a period of five years (during 2009-2014). It is a wonderful idea to have Indian cities without slums. Of course, slums constitute the abodes of misery and destitution in the cities. Improving the living conditions and living environment of about 93 million slum dwellers over a short period of five years is really a gigantic task unparalleled in history. Apart from the difficulty in raising the enormous funds required to meet the expenditure for executing the plan, there is serious difficulty in finding adequate land for implementing such a massive scheme. The surplus land   available with the government departments, public sector undertakings and port trusts can be allotted for resettlement of slum dwellers, instead of resettling them in ghettos in the outskirts of the cities.
Construction of Government Offices:  Many central, state local government offices as well as post offices are functioning in rented buildings all over the country paying huge amount as rent. Moreover, most such buildings are old and dilapidated due to lack of proper maintenance by the landlords. If the surplus land   available with the government departments, public sector undertakings and port trusts is allotted for the purpose of building office complexes, the governments can save huge amount paid as rent, besides crating better working environment.
No Moral and Legal Rights: Moreover,  the UPA government has no moral rights the policy  to initiative such a vital policy decision because it  government is now reduced to a minority status. Trinamool Congress has already announced the withdrawal of support to UPA government. The second biggest allay, DMK, has also said categorically that it would not back the government on any resolution brought against the government on FDI in multi-brand retail trade. The Tamil Nadu Chief Minister, Dr. J.Jayalalithaa, has vehemently opposed the decision to allow 51 percent FDI in multi-brand retail. Samajwadi Party (SP) supremo Mulayam Singh Yadav has expressed support to Mamata Banerjee's resolution. Likewise, almost all opposition parties such as BJP, CPM, CPI, Janatha Dal (United), Telugudesam Party, Bhahujan Samajwadi Party, and a host of other minor parties such as DMDK and MDMK have expressed their strong resentment. Therefore, there is no chance for the UPA government to survive any no confidence motion brought by Trinamool Congress or any other party. Dr. Manmohan Singh and his associates claim that India has achieved unprecedented economic growth since 1991. Then, what is the rationale behind alienating the government land to real estate tycoons and crony capitalists? Many people believe that extraneous considerations other than raising resources seem to play a dominant role. It is also believed that a gigantic ‘land-scam’ is in the offing.
Under the circumstances stated above, the idea to hand over the surplus land   available with the government departments, public sector undertakings and port trusts is brazen and ill-conceived. Land is a scarce resource and once it is alienated and handed to private individuals/organisations over public interest, the government will have to chuck out huge amount for the acquisition of land for public purposes. Moreover, no other country in the world has resorted to sale of land to private individuals/corporates to tide over financial crisis.
The Times of India, Oct. 3, 2012@ Oct.5, 2012

Tuesday, October 2, 2012

Tamil Nadu wakes up to granite plunder



More than the loss thousands of crores of rupees to the state exchequer, granite quarrying in Madurai District has caused irreparable damage to the ecology and massive destruction of the environment. It is distressing to note that the livelihood nearly 10,000 agricultural households have been destroyed due to encroachment of agricultural land, destruction of water bodies and   irrigation canals, besides the devastation of many hillocks that serve as the source for the water bodies in the region. This commentator was rudely shocked to see the total destruction of farming in about 30,000 acres.  Moreover, more than 20 water bodies (irrigation tanks) have vanished due to total defacement and destruction. The whole area looks like a locally completely destroyed due to bombing in a war. Most dastardly act is the destruction of all the hillocks that used to be not only the source of water for the tanks but also a beautiful location.  It is reported that water canals in the entire region have disappeared with granite firms constructing their factories, stock yards and polishing units on them. The affected areas are also those irrigated by canals fed by rivers in the region such as Periyar and Vaigai. What is more  even land, protected by the Archaeology Survey of India for the presence of ancient Jain rock monuments, have also been blasted for granite blocks.  All these destruction of land, tanks, canals and hillocks started with irrational granting of twenty-year mining leases granted to firms for quarrying granite on patta as well as government land through tender-com-actions. The situation became severe due to encroachment on government land by these firms with the connivance of corrupt officials. The government should take severe action against the firms that destroyed the areas and against the officials  who colluded with them  by taking bribery.
 Dr.C.Murukadas,  The Economic Times, Oct. 2,2012

How graft grew on Granite



The reports on granite quarrying in Madurai distract of Tamilnadu is an eye opener. It is not only an issue of looting  thousands of crores of  rupees worth granite  and huge  loss  to the exchequer through illegal quarrying with political patronage and connivance of corrupt officials, but also the enormous damage caused to the ecology, environment, agricultural, ground water, natural streams, ponds, canals, biodiversity, etc. It is incomprehensible to note that for more than a decade there has been unrestricted, unchecked and unregulated granite quarrying in this region, which made the quarry owners rich and richer and the politicians and bureaucrats wealthier and wealthier through large scale corruption. It is painful to note that the officials were well aware about non-compliance of conditions and other illegalities/irregularities happening in the quarries and that the regulatory mechanism has been entirely collapsed and irregularities due to maladministration have risen to its peak. In a way, total damage has been caused to environmental sustainability and ecosystem due to indiscriminate quarrying. The entire area has been rendered environmentally unsustainable and unusable for cultivation. It is distressing to note that the livelihood nearly 10,000 agricultural households have been destroyed due to encroachment of agricultural land, destruction of water bodies and   irrigation canals, besides the devastation of many hillocks that serve as the source for the water bodies in the region. This commentator was rudely shocked to see the total destruction of farming in about 30,000 acres. Moreover, more than 20 water bodies (irrigation tanks) have vanished due to total defacement and destruction. The whole area looks like a locally completely destroyed due to bombing in a war. Most dastardly act is the destruction of all the hillocks that used to be not only the source of water for the tanks but also a beautiful location. It is reported that water canals in the entire region have disappeared with granite firms constructing their factories, stock yards and polishing units on them. The affected areas are also those irrigated by canals fed by rivers in the region such as Periyar and Vaigai. What is more  even land, protected by the Archaeology Survey of India for the presence of ancient Jain rock monuments, have also been blasted for granite blocks. All these destruction of land, tanks, canals and hillocks started with irrational granting of twenty-year mining leases granted to firms for quarrying granite on patta as well as government land through tender-com-actions. The situation became severe due to encroachment on government land by these firms with the connivance of corrupt officials. The government should take severe action against the firms that destroyed the areas and against the officials who colluded with them by taking bribery. The same is the situation in other parts of the country. Therefore, both the central governments should wake up and take steps to stop this pernicious practice of illegal and unscientific mining and quarrying so as to save the country from environmental and ecological disaster, besides preventing the looting of public money by unscrupulous elements with the support of the corrupt politicians and bureaucrats.
Dr.C.Murukadas, Financial Express, Oct. 2, 2012.

If govt is falling, we will definitely give it a push: Sharad Yadav



The Janatha Dal Party chief and Chairman of NDA Coordination Committee  Mr. Sharad Yadav has openly stated   that if the UPA government is “falling anyway, we will definitely give it a push."  As his statement came a day after Trinamool Congress chief Mamata Banerjeesaid that her party planned to bring a no-confidence motion against the UPA government in the next session of Parliament and sought support of other political parties in this regard, it has to be treated as another death knell to th the UPA government headed by Dr.Manmohan Singh and directed by Mrs. Sonia Gandhi, the Congress Party President. Trinamool  Congress, the biggest coalition partner of UPA,   has already announced the withdrawal of support to the present UPA government because of its strong opposition to the recent anti-people measures initiated by the government in the name of so called “reform”. The second biggest allay of the UPA, DMK, has adopted a resolution at an emergency meeting of DMK Executive, on October1, 2012, demanding reconsideration of the decision to allow FDI in the multi-brand retail sector.  DMK has also and said it would back any opposition-sponsored resolution that may be brought on the issue in Parliament. The government has lost its credibility and moral rights once Trinamool Congress withdrew its support. Now that the DMK has said categorically that it would not back the government on   any resolution brought against the government against FDI in mult-ibrand retail trade, the Manmohan Singh Government is in a precarious condition and counting its days. Moreover, Samajwadi Party (SP) supremo Mulayam Singh Yadav has said that he would not oppose such a resolution. The Tamil Nadu Chief Minister, Dr. J.Jayalalithaa, has vehemently opposed the decision to allow 51 percent FDI in multi-brand retail and demanded its withdrawal while declaring that Tamilnadu will not allow the measure. She has affirmed that: Likewise, almost all opposition parties such as BJP, CPM, CPI, Janatha Dal (United), Telugudesam Party, Bhahujan Samajwadi Party, and a host of other minor parties such as DMDK have expressed their strong resentment.  Therefore, there is no chance for the UPA government to survive any no confidence motion brought by Trinamool Congress or any other party. In all likely hood elections may be held sometime in the early 2013.

Dr.C.Murukadas, The Times of India, Oct. 2,2012

Retail FDI: Creation of 10 million jobs not practicable.

Creation of 10 million jobs is not practicable.
It is true that a few thousands of literate/educated youth will get job in
retail chains and get attractive salary too. Most of those jobs will be
generated at the front-end, in positions such as sales associates, cashiers,
customer services staff, security guards, in-store security personnel, IT and
systems for retail staff, customer relationship associates, loaders/ unloaders,
merchandise refilling staff, department managers, store managers and regional
and national managers. Some of the new jobs will be in warehousing and
logistics-related areas. The rest will come in manufacturing services such as
per-processing and processing. But what is the guarantee that the displaced persons
belonging to the unorganised retail sector will find employment in the
multinational retail outlets. A few corporate brokers will also get opportunity
to earn considerable amount of brokerage.Coming to reality, the creation of 10
million jobs is unachievable even in the long-run, leave alone in just three
years, as against the contention of Mr.Anand Sharma, the Union Commerce and Industry
Minister, who failed to elucidate the ways and means of creating such a large number of jobs,
say in millions, by the multinational retail giants. Various studies on the impact of global retail
giants setting up retail stores confirm that job losses have occurred
everywhere and as a result disrupted the livelihood of the people. The study by
David Neumark of the University of California and his colleagues in 2007 revealed that for every
job created by Big Box retail, 1.4 jobs are lost from smaller retail stores in
the neighbourhood. Another study by Emek Basker of Missouri University in 2005
concluded that up to 60 jobs might be lost in 5-6 analysing US
counties with an average population of 78,000 (during 1977-1998). Another study
on opening of retail shops by the global giants in Jakarta (the capital city of
Indonesia, found that 2 jobs were lost in the unorganised retail sector for
every one job created by the Big Box retail). According to the Madras Kirana
Merchants' Association: “It (FDI in retail) is an act not desirable for any
country to create a situation in which a few retail giants monopolize the major
portion of retail trade, This is particularly applicable to India where large
numbers of people (who cannot be employed elsewhere) are employed by this
trade. This move of the Government will affect the presently unemployed force
of India and also affect the presently employed force in future.
Dr.C.Murukadas, First  Post.Economy, Oct. 2, 2012