Disinvestment of NPCIL

It is unfortunate to note the central government is resorting to various anti-people measures, conveniently termed as reform.”  One such measure is the disinvestment of public sector undertakings. On September 8, 2013 the government initiated the process to sell stakes in two blue-chip PSUs - NALCO and NMDC. It was expected it mop up around Rs 9,000 crore based on present stock prices. Later it had sought merchant bankers for Neyveli Lignite, where it plans to sell 5% stake, again through the auction route. The total amount expected to be moped up is around Rs. 10,000 crore. The stated purpose of the proposed disinvestment is to bridge the deficit that the Centre. In the cases Neyveli Lignite and NALCO - the share is also said to be necessitated to comply with the new SEBI norms that mandate at least 10% non-promoter holding in listed companies. The government has proposed to sell 10 per cent of its stake in Nuclear Power Corporation of India Ltd (NPCIL) through an initial public offering ( IPO) that will list the company on the stock exchanges. Reports show that a section of the politicians and bureaucrats have developed the mind set against the public sector. They are lobbying to privatise the public sector units, including the profit making units. One of the routes suggested by them is disinvestment.  The assets owned by the public sector units are the property of the people of India. Th government is only the custodian of the property. Therefore, the government should be careful in diluting the assets of the general public. Already vast resources of the people of the country have been looted by the crony capitalists with the support of corrupt politicians and connivance of corrupt officials.  The country has lost nearly Rs.15 lakh core in illegal mining and fraudulent allocation of mining rights, allocation of coal blocks, gas/petroleum blocks, and spectrum, besides allotment of land, quarrying rights,  liberty to collect tolls, etc. As a result, a few industrialists, businessmen, real estate tycoons and others have benefit ted vast amount running to lakhs of crores of rupees.  If the natural resources of the country are fairly and judiciously allocated, the country can raise thousands of crores of rupees every year, which will be more than sufficient to wipe out fiscal deficit of the country, besides facilitating investment in development programmes and welfare schemes. Moreover, hundreds of thousands of crores of public money is lying with banks and post offices as unclaimed deposits as well as interest, and remaining with the insurance companies as unclaimed policies for a long period. Such unclaimed amounts can be mobilised by the government for bridging the fiscal deficit and raising resources for development programmes and welfare schemes. Similarly, thousands of crores of rupees is lying unspent in several schemes and programmes, which can be re-channelised to bridge the fiscal deficit. Moreover, if the  huge amount of black money and property  lying on foreign banks comes back to India, the entire foreign debt can be liquidated. And after paying the entire foreign debt, India will have huge resources to invest in development programmes and welfare measures. Under the circumstances, disinvestment of public sector units is warranted and unadvisable.

Dr.C.Murukadas, The Times of India, Dec. , 1, 2012

Donations/capitation fees in Schools

In 1991, India liberalised the economy by initiating a package of wide ranging reforms known as new economic policy. The neo-liberal policies included opening for international trade and investment, deregulation, initiation of privatization, tax reforms, and inflation-controlling measures. The overall direction of liberalisation has since remained the same, irrespective of the ruling party. After liberalization of the economy, the central and state governments slowly started to withdraw from the policy of providing free education. The education has been thrown open to private sector, which led to commercialisation of education.  Recently a new type of educational institutions has come into existence, namely self-financing (unaided) institutions. These institutions have been promoted by capitalists, businessmen, real estate tycoons politicians, religious heads, communal associations, money launderers, liquor barons, smugglers, profiteers, bureaucrats, politicians  and other such individuals, who rarely cherish the idea to serve the society. Admittedly the growth of such institutions has led to the commercialisation of education. These institution woefully lack infrastructural facilities and qualified teachers. While they collect huge amount as capitation fees and as tuition fees, the salary paid to the teachers (including fully qualified teachers) is often a pittance compared to those employed in government and aided educational institutions. These teachers are not only denied proper salary but also security of service and other benefits.It is quite disturbing to note that    more and more such schools are resorting to the collection of donations/capitation fees in various names and different methods. How is it that the authorities are turning a blind eye when collection donations/capitation fees are prohibited?  Today, more and more people have too much money with them, which is not hard earned but gained through  tax evasion, corruption, bribery, embezzlement, plundering of the resources of the country, black marketing,  hoarding, miss-invoicing, money laundering and other such shadow activities. Such people are prepared to pay their black money to the unscrupulous school managements who indulge in the unlawful act of collecting donations/capitation fees. Such rich parents are making difficult for those who cannot make out huge payments.  Education is like a basic necessity and should be offered free or at nominal cost to everyone. The politicians and bureaucrats are also colluding with these unscrupulous managements of unaided schools which are promoted  for profits. These needs to be changed and the government should take effective steps to curb this unlawful practice of taking donations/capitation fees by school managements.

Dr.C.Murukadas, The Times of India, Nov.27, 2012

Smt. Indira Gandhi is one of the tallest leaders of India.

Smt. Indira Gandhi is one of the tallest leaders of India. Notwithstanding certain unpopular actions such as declaring emergency,  she has been a seen as an able administrator and pro-poor. Her contributions to the growth and development of the country are numerous. Like Jawaharlal Nehru she had great faith in the public sector for the rapid development of the country. Her contributions towards ushering in green revolution and self-sufficiency in food   grain production are noteworthy. In fact the special agricultural innovation programmess and extra government support initiated in the 1960s finally transformed India's chronic food shortages into surplus production of wheat, rice, cotton and milk. That achievement, along with the diversification of its commercial crop production, has become known as the "Green Revolution". At the same time, the White Revolution was an expansion in milk production which helped to combat malnutrition, especially amidst young children. 'Food Security', as the program was called, was another source of support for Gandhi in the years leading up to 1975. In 1969, Prime Minister Smt. Indira Gandhi took the historic decision to nationalise 14 major banks with a view to promote economic development and widening access to banking facilities. Banks were given targets for lending in priority areas (like agriculture) and were directed to offer banking services to poorer members of Indian society who had been neglected by the private banks. Under the nationalization drive, the number of bank branches rose from 8,200 to over 62,000, most of which were opened in the unbanked, rural areas. The nationalization drive not only helped to increase household savings, but it also provided considerable investments in the informal sector, in small and medium-sized enterprises, and in agriculture, and contributed significantly to regional development and to the expansion of India’s industrial and agricultural base. In 1969, while she was addressing a meeting of the Student Congress leaders in Chennai this commentator put the following question to Madam Gandhi: “Dear madam will you tell why the banks were nationalised?” She quipped, “You said you are a PG student of Economics; you are a youth, wait and see, time will tell you why banks are nationalised.” Now I have realised that nationalization of banks has greatly contributed to the growth and stability of the country. Let us not forget this great  leader of India!

Dr.C.Murukadas, The Times of India, Nov.19, 2012.

Denigration of the Nadar community in the CBSE Class 9 Social Science textbook

We wish to thank Dr. Jayalalitha for taking up the issue  of denigration of the Nadar community in the CBSE Class 9 Social Science textbook with the Prime Minister of India, Dr. Manmohan Singh, and requesting him to direct the appropriate authorities to remove the defamatory remarks immediately. The Chapter entitled, "Caste, Conflict and Dress Change" in the above said book has wrongly depicted members of the Nadar community as migrants. The statement that the members of the Nadar community are migrants is not only incorrect but also mischievous. Nadars are one of the earliest settlers of South India. Their history dates back to antiquity.  Although Nadars are found all over the South, the density of their population is high in the southern districts of Tamilnadu and south eastern part of Kerala. They are also found in large numbers in Karnataka. The Nadar community is not a lower caste as mentioned in the CBSE book. There is no doubt that Nadars are descendants of those who ruled the Chera, Chola and Pandya Kingdoms. They have also been rulers of South India at one point of time. For some time they were persecuted and their belongings were looted by the Palayakarrars, especially by Kattabommulu, who   were the feudal class of territorial administrative and military governors appointed by the Nayak rulers of South India (notably Vijayanagar Empire, Madurai Nayakas and the Kakatiya dynasty) during 16th – 18th centuries). In south east Travancore also they were ill-treated and mercilessly persecuted by the Nair rulers.  In order to escape persecution they moved to down south and on the hillocks. But they, through hard work, converted large tracts of arid land into fertile cultivable land. The bleak and barren slopes of the hills were also converted into resplendent vegetations, and food crops of various kinds. They tapped palms for toddy and sweet juice and jaggery. They were the sole manufactures of   salt. They had also developed spinning and weaving as a cottage industry. But after independence, the Nadar community rose against persecution and ill-treatment through hard work. Today its members form the largest trading community in Tamil Nadu. They have established business all over Tamilnadu and various other cities in India, including Mumbai, Bangalore, Thiruvananthapuram, etc. The literacy rate of the Nadar community is highest among the big communities of India. In News Paper and IT industry also they have laid the stamp of supremacy. The Nadar community was the earliest group to establish schools and colleges and provided free education to all irrespective of caste, religion and creed in their institutions. Moreover, they have contributed a lot during the freedom struggle and after Independence in shaping the Indian polity, especially Tamilnadu.  India is yet to find a better administrator (Chief Minister) than Perunthalaivar K.Kamaraj.

Walmart probe

“But even if they (charges of corruption and bribery) are found true, that would be no reason to block FDI in multi-brand retail. FDI in retail must be allowed not because Walmart or some other foreign retail chain wants it, but because it is in the interests of India's consumers and farmers.” The above view of Times is not only unfortunate and brazen but also reprehensible. It reminds me of an old adage, “Now, it has come to light ….the bridegroom is a burglar and a murderer; but the marriage to be solemnized as all arrangements are over; everybody has come; said so, the mediator.”  Everybody, including Dr.Manmohan Singh and the so called votaries of FDI in mutli-brand retail trade,   knows that “FDI in retail trade will not serve any purpose. It will do more harm than benefit the people.” In fact, in 2002, as leader of the opposition in Rajya Sabha, Dr.Singh fought tooth and nail against the introduction of FDI in retail. His colleague Mr. Priya Ranjan Munshi castigating the BJP, which was in power then and who tried to bring FDI in retail, said “it is anti-national to bring FDI in retail.”  Now, Dr. Singh says that FDI in retail is pro- national and is to be welcomed, irrespective of merits or demerits. What is cause for the somersault by Dr.Singh and the Congress party? Is it not an open secret that they have fallen prey to the powerful lobbying by Walmart and other multinational retail giants and the pressure exerted by their home governments? Does it not mean that erroneous factors and extraneous considerations have played foremost roles? Now the retail giant Walmart having disclosed that it is investigating alleged violations of the US anti-bribery law in India, China and Brazil, who are the beneficiaries of the kickbacks (bribery)?  These aspects have to be investigated and the culprits have to be severely punished. As far as your view that FDI  in retail must be allowed in the interests of India's consumers and farmers. It is   nothing but a deceptive propaganda, which is not supported by facts. This commentator has done extensive research on the pros and cons of FDI in retail trade in India. The results have been published in the form of a book entitled, “FDI in Retail Trade in India: a Retrograde Step” by M/s RAC Publications, No. 38 (Old No. 76-A) Choolaimedu, Chennai-60094. The study concludes as followers: “Evidences from various parts of the world indicate that   widespread   emergence of big format retail super stores have lead to extensive ruin of retail stores/shops thereby resulting in the loss of employment and livelihood to millions of persons involved in retail trade.… FDI in retail trade will not serve any purpose. It will do more harm than benefit the people.”The general perception is that the government has resorted to the recent measures with a view to divert attention of the public  from various scams, sandals, frauds and other such shadow activities perpetuated during the past few years.

Dr. C.Murukadas, The Times of India, Nov. 17, 2012