Money does grow on trees, Prime Minister

JASWANT SINGH

Member of Parliament

There is no way we can take lightly the Prime Minister’s recent address to the nation. It was, unarguably, an exceptional step for him to take, renowned as he is neither for his loquacity, nor for his oratorial skills. Why then did he mount his Rocinante of ‘91 vintage and futilely lance opponents of his policies by alleging that they were “spreading canards”? Also, which Sancho Panza on his staff persuaded him to use this insulting noun? But for this, his otherwise rather nondescript address would have been best left to its inevitable fate of oblivion. Not, however, now.

Telephone call

First: this rather admonitory “money does not grow on trees”. Just a day after this astonishing, also so unneeded, reprimand, I received a telephone call from a retired soldier colleague, who had served with me as my tank driver, sharing with me for many years my tank lean-to shelter at night. I save his name lest he be nagged by the otherwise inefficient Intelligence Bureau. “Sahib”, he said in his thick Shekhawati dialect and accent, “please educate the PM that money does actually grow on trees and plants; we get all our fruits, vegetables and animal feed and also firewood from a ‘tree’. So tell him to think of the farmers, not of the ‘foreigners’, who over two centuries back came as a company and took away our land. Not one ‘biswa’ [a measure of land] was left to us”. I promised him I would do so, but advised him not to disturb his retired life over such depressing thoughts, for just as our ‘dhabas’ defeated a rather cocky Colonel from Kentucky, US of A, India will defeat this, too. And not one word of this anecdote is made up.

Therefore, next to the fabled merits of multiple retail shops of (in)famous names.

Please reflect first on the merits of India’s unorganised and widely dispersed retail trade, explained with admirable clarity and succinctness by S. Gurumurthy (“‘Reform’ at Nation’s Cost,” New Indian Express , September 20) : “The unorganised retail trade in India represents the traditional, community-centric, low-cost … employment intense retailing that includes, but is not limited to, kirana shops, owner-run-general stores, paan-beedi shops, convenience stores, and hand-cart and pavement vending. In this model a whole family works in one shop and a whole community is engaged in the trade in a defined area. Most advocates of corporate … and retail firms … ignore [this] critical contribution of the [existing system] to the Indian economy and society (emphasis added). This “multi-layer retailing is the most decentralised economic activity in India after agriculture. Second, it constitutes almost 98 percent of the total trade with an estimated 12 million outlets. In contrast, organised trade accounts for just 2 percent. Third, it is the largest employment provider after agriculture, employing an estimated 40 million people”. In contrast, the world’s largest retail chain, Wal-Mart, employs just about five lakhs. Fourth, being “self-employed … with their families”, this activity comprises “120 million people”.

It is “retailing that continuously generates … huge community-based entrepreneurship”. And then “it contributes over 14 percent of India’s GDP, while all [the] companies in the BSE 500 Index, put together is some 4 percent”. Also that the “unorganised retail segment has been growing at an average rate of over 8 percent a year for the last eight years (1999-00 to 2006-07). … second only to construction …” Let us consider seriously that “if [this] social capital link to retail trade is unsettled, the entire distant and remote supply chain will suffer over a period, disturbing the social equilibrium and the organic social links that have evolved over … centuries”.

There is then a further ‘canard’ spread by our dear PM and his ilk, suggesting that concerns like ‘Walmart’, and others of that variety, overflow with the milk of human kindness and act only out of empathy and compassion for India’s farmers and poor. Gurumurthy very effectively comes to our assistance here, too, the evidence, even in the U.S. being to the contrary: “Walmart entered in Austin neighbourhood of Chicago in 2006. And by 2008, some 82 of the 306 small shops had closed down.” Further, “the Economic Development Quarterly study found the closure rate around Walmart location at 35-60 per cent.” Such studies in the U.S. reject the UPA’s assertion that FDI in retail does not hurt small shops. On job creation, a January 2010 report titled ‘Walmart’s Economic Footprint’, prepared for the New York City Public Advocate, says that “Walmart kills three local jobs for every two it creates”. Jayati Ghosh, an eminent Indian economist cited by Karan Thapar, asserts that “one Walmart store in India will displace 1400 small retail stores costing 5000 jobs”. This, too, is dismissed by the government as “meaningless”.

Misplaced view

As for Walmart offering better prices, please recognise it does not buy or pay for goods over the counter. It purchases the nation’s next harvest in futures market and fixes farm prices. It also “imports cheap goods and destroys local production like it has done in the U.S.” And an outstanding example of this is provided by President George W. Bush, who gratuitously observed “that [rice] prices had gone up because newly prosperous Indians had begun eating more”. In truth, as detailed by USA Today (April 23, 2008) and CNN (April 24, 2008) the “California Rice Commission and USA Rice Federation” denied there was a “shortage of rice”, explaining that it was because ‘Sams Club’ (Walmart’s wholesale division) was holding ‘huge stocks’, and ‘pushing up the prices’.

Two UPA government reports — of the Planning Commission Working Group on Agriculture for the XI Plan (2007-2012), and the 19th report of the Standing Committee of Parliament on Food (2006-2007), to Parliament — “themselves nail the lie that Walmart will link farm-gate to its gate and make Indian farmers rich”.

There is then that absurd assumption that this variety of capital inflow is the answer to our present trade and current account deficits. First, this is neither true nor tenable. Secondly, whose misgovernance/absence of governance has brought about this situation? Please do not place all blame on the ‘global situation’ when you do not hesitate to pat your back about crossing the 2008 fiscal obstacle course. “The trade account deficit of about US$150 billion and the current account deficit exceeding 3 per cent of GDP is very alarming and may lead to a balance of payments crisis of much graver nature than the 1990 position”. It is this continuous pressure on the “trade account and the sudden withdrawal of funds by FIIs from the stock market that has weakened the Indian Rupee”, (Rs. 16 in 1991 to as low as Rs.50 per U.S. dollar) during the UPA-2’s Rule, resulting in a “devaluation of more than 300 per cent”. (Thus becoming) one of “the major causes of imported inflation in the country during the past two decades”. Should our domestic savings, contributing almost 90 per cent of investments in the country, go down, which without fiscal and monetary incentives could well happen, and should the Investment to GDP ratio fall below 30 per cent, then surely we will revert to a ‘sub-Hindu rate’ of growth. That is why prime ministerial favours to foreign investors and step-motherly treatment to our dear desi s is so difficult to grasp.

Finally, a brief word about the totally wrong phraseology, to which all have by now succumbed. The measures recently undertaken are not in any sense ‘reforms’, and I am very glad our distinguished Deputy Chairman of the Planning Commission has candidly and correctly said so. These, at best, are ‘administrative’ measures which the government has now, with much fanfare, announced. Misplaced again, for the first reform needed, the very first is ‘reform of government’, and reforming governance is vital so that corruption is minimised and efficiency in administration maximised. I am doing what I promised my soldier colleague I would do. Are the knights of “El ingenioso hidalgo …” listening?

The U.S. experience proves that big retailers like Walmart are destructive for the community and will not generate the benefits that India has been promised.

http://www.thehindu.com/todays-paper/tp-opinion/money-does-grow-on-trees-prime-minister/article3943962.ece

'No rehabilitation without proper land documents

 

KOKRAJHAR, Sept 24: The rehabilitation of the displaced people staying in various relief camps in BTC region is being made only after proper scrutiny of land and other related documents. Talking to reporters, BTC Deputy Chief Kampa Borgoyary said that no one would be allowed to resettle if they failed to produce land pattas and other documents verifying them as Indian citizens.     Borgoyary said, the BTC administration was gearing up for proper scrutiny of displaced people in the recent violence, for resettling them to their respective villages. He said the scrutiny was just completed in the Chirang district, where people were forced to produce land pattas. Borgoyary said, of 25,000 families affected in the recent conflicts, 18,000 families had filled up the formats of the rehabilitation forms as per the Government norms in Kokrajhar district. He said, nearly 8,000 families were reported to have no land patta while another 8,000 families were recorded as doubtful citizens. On the other hand, 1,077 families have no lands in the region, he said, adding that the BTC administration, in association with concerned department of the State Government has been carrying out the process of resettlement in the region, so that only the genuinely affected people were rehabilitated at the earliest. Borgoyary said, the displaced people would be rehabilitated after the proper scrutiny of the land documents as per the agreement with the group of ministers of Assam Government and BTC administration in August this year.

RSS not averse to Dalit as Sarsanghachalak : Bhagwat

Source: News Bharati English      Date: 9/5/2012 4:51:40 PM

Mumbai, September 5 : A Dalit can definitely become Sarsanghachalak and head Rashtriya Swayamsevak Sangha. We don’t have any restrictions in that regard, stated Sarsaghachalak Mohanji Bhagwat, here on Tuesday.

Whoever works can become a Sarsanghachalak and hence a Dalit can definitely become Sarsanghachalak. But, he will become a Sarsanghachalak not by the virtue of being a Dalit, but for he fulfills criteria of work, Bhagwat elaborated. He was speaking at ‘Idea Exchange’ organized by ‘Loksatta’ express group’s flagship Marathi newspaper. Bhagwat openly discussed many things right from relevance of RSS to daily routine of Sarsanghachalak and how Sangha defines Hindutwa.

RSS makes people forget petty issues. More we talk against the things, they keep on coming forth. Caste is one such thing, because it is there in the minds. RSS tries to clear minds of such petty things. So people of all communities in India have hope and faith in Sangh, Bhagwat said while elaborating his point.  He also stated RSS’s stand on the issue of reservations. Reservations are needed wherever there is social discrimination and it should remain till the discrimination dies away, is what RSS thinks, he said. While accepting the fact that, it can’t be an endless affair and reservations will have to end some day, he opined that a non political committee comprising of experts from various walks of life can be entrusted to decide the time bound course for any action in that direction.  He also said that, RSS has always tried to uproot the social discrimination amongst Hindus. Stressing that, reservations are needed for social empowerment, he said, “it’s a pain that, people have used reservation for politics and not for empowerment of people.” He also appealed people to take care that such an issue of social importance should not become a cause of debate and divide.

While addressing questions regarding membership of RSS, he said that over 90 percent of Swayamsevaks are between the age group of 20-25. RSS attracts youth because patriotism and service to humanity are still the two strongest things that youth want to get identified to. Young people employed in the IT field are getting attached to RSS in large numbers. Organized and cultured society is everybody’s need and RSS has always been trying to achieve this goal, he said. He also said that, Today's generation is socially conscious, they take many things positively.

Swayamsevaks are there in many political parties, not just in BJP. Not only a swayamsevak but anyone can approach RSS for help. All political parties are equal for RSS. We are happy to help any political party who needs help. We have helped even Congress at times, Bhagwat said while addressing a query in that regard.

Bhagwat also set aside allegations made about the organisation’s support to Team Anna during its agitation over the last year. “Anna Hazare has a standing of his own. He is not a swayamsevak. Why should we take credit for his work? We had passed the resolution against corruption and support fight against corruption in any format. It is their efforts and planning,” he said.

With recent terror attacks being attributed to Hindu groups, Bhagwat said that “Hindu and terrorism cannot be termed together”. Hinduism has always promoted the middle path, never extremism. “Allegations have been made against individuals but not yet proven. Role of investigators is also questionable. Let the charges be proven,” he said. RSS uses word Hindu in larger context. No one in India is ‘Ahindu’, we don’t have ‘European Christians’ or ‘Arabic Muslims’ here in India.

Asked about the stand regarding economic reforms, FDI considering their preference for swadeshi products, Bhagwat said the organisation believed in self-reliance and models from across the world should be adopted. We should understand the “Self” of our country and our economic policies should be based on that.

“All countries aim to be independent and self-reliant. We are assembling and not manufacturing goods. Our strengths should define our goals. China and Russia have become super power on their own. It should be such that there is least impact on environment, create employment opportunities here. We should not just be consumers, but producers,” he said.

He opened his mind on many more such issues in the program that lasted for over 3 hours. A detailed account of which is to be published in the Sunday edition of Loksatta on 9^th sep.

'Coal loot took place under PM's nose, he looked away'

Hansraj Ahir, the man who wrote more than 15 letters to Prime MinisterManmohan Singh to alert him about the glaring irregularities in allotment of coal blocks, is an undergraduate.

The self-confessed (Veer) Savarkarite, Ahir isn't well-versed in English but he somehow manages to send letters in Hindi, English and even Marathi, his native language, on the issues as complex as the national policy of allotment of coal.

The central theme of his letters on coal allotment was that coal should not be excavated in haste without realising its real value. Coal, the most important energy source in India's energy sector, meets around 52 percent of primary commercial energy needs as around 66 percent of India's power generation is coal based.

India is the 3rd largest coal producing country in the world after China and the United States. One of the letters to the Central Vigilance Commissioner had been forwarded to the Central Bureau of Investigation and has become the basis of the investigation of the alleged coal scam. The CBI investigation is in full swing which has led to raids at many places on Tuesday.

Ahir, a three time BJP MP from Chandrapur in Maharashtra, also wrote to the Comptroller and Auditor General about "free of charge" allocation of 221 coal blocks to 150 companies by the United Progressive Alliance government. He questioned Dr Singh many times -- Why give away at no cost 21.69 billion tonnes of coal reserves to private parties?

According to him, former prime minister P V Narismha Rao should be blamed for forming and implementing the policy that allowed free allocation of coal. The same policy was continued by the Atal Bihari Vajpayee government but the price of coal was low at that time due to the lack of demand.

During the UPA-1 regime under Dr Singh's watch the government gave away valuable coal for free to the alleged end-users when its market price was rising in domestic and international markets.

Meanwhile, the Singh government did attempt to amend the law and fine-tune the coal allocation policy but only after giving away almost one-seventh of the country's coal reserves for free. It took more than five years to make competitive bidding of coal into a mandatory policy.

The allegation is that the delay helped Dasari Narayana Rao and Santosh Bagrodia, ministers of state for coal, to dole out favours. They ran the ministry as if there will be no tomorrow, Ahir says and adds: "I would say Bagrodia played a huge role in the coal allocation. He knew the real importance of koela (coal)."

Dasari and Bagrodia knew the importance of political patronage to get anything out of the system. Also, they knew coal blocks would move and shake the power sector. The real trigger of 'free allotment' of coal blocks came due to economic reforms in the power sector which created dramatic demand for coal and increased its price manifold, making the Bagrodias of the political world very important in the scheme of things of the business planning of groups like Tatas, Ambani, Adani, Jindal and Mittal.

Ahir, who is fighting a battle to ensure that precious mineral coal doesn't go away cheap, says, "The government did not verify the credentials of applicants and gave away coal blocks to many benami companies."

'My prime contention was that let us not give coal for free'

What inspired you to take up the issue of the coal allotment policy?

My constituency is Chandrapur in Maharashtra. In and around my area, 3 percent of India's coal deposits are located. I got interested in it because in my area the issue of land acquisition for the mining of coal is bothering people.

Second, the pollution due to mining also concerns our people. Three, coal production gives employment. So I have known all issues related to coal mining.

I have got big success in the land acquisition issue. I opted to join the standing committee on coal in Parliament. In 2006, I came to know that we are giving coal blocks to the private sector. Much later I came to know that it will be given free of cost to the corporations. The issue puzzled me. I kept asking why free of cost?

I am a fan of Coal India Limited. It was founded in 1975 by Indira Gandhi. She nationalised the coal sector in 1972. Everyone welcomed it because it was a good decision. It's a successful and a Navratna company. It had coal production of 100 million tonnes in 1980-81. Now it has turnover of over 450 million tonnes.

In 2011, Coal India was termed as the most valued company in the country in terms of market capitalisation. The company's value is Rs 251,296 crore. In view of my understanding of Coal India's working, I opposed the private sector's entry at such careless terms.

I kept writing letters, kept opposing it. I opposed the government's moves in the Standing Committee too. In fact, many MPs supported my stand in the committee.

We were able to see that as coal production in our country was rising, the employment generation was on rise too. Coal India's agenda was to make coal easily available and make it available at a reasonable price.

That was Indira Gandhi's dream. I think, in 2005, some officers of Coal India, some officers of the coal ministry and the power ministry provoked the government to go for free allocation. The ministers bought the idea.

From 2006 to 2010 I wrote some 15 times to Dr Singh. I wrote to the CVC and CAG too. I wrote to the Planning Commission and the finance minister too.

My prime contention was that let us not give coal for free. Second, I insisted that Coal India is a good company. Let us not allow it to deteriorate due to corporate India's interests. Third, I pointed out that those who are getting free coal blocks are dubious. Most of them, not all, don't have the 'end-user' plants.

They are not making cement, power or steel. Why is government not thinking twice before giving away coal blocks to them? I wrote letters pointing out that some allottees have sold the coal blocks. The ownership of rights of mining coal has changed hands in some cases. It's against the law. They changed the management of the company after obtaining the free coal blocks.

I was trying to stop private players in the sector who came in just to make big bucks.

I told my party leaders about the subject. After 2009, I informed Sushma Swaraj and Arun Jaitley. They advised me that I should follow it thoroughly. They said keep working through the Standing Committee. Keep getting information, keep complaining to the government. Whenever the opportunity will arrive the party would turn it into "an issue".

Sushmaji even arranged two national level press conferences of myself and (BJP spokesperson) Prakash Javdekar. We got little bit of coverage. The complaints against the coal allocation increased. The CAG made the draft report. Even, the CVC send my letter to the CBI and investigations began. The CAG's report proves that my complaint has an element of truth in it.

Whatever I have been writing since 2006 and whatever government documents on subject are available say that the country lost money. The coal allocation hurt the national interest.

‘ The prime minister didn't understand coal'

Which individuals should be blamed for the allotment of coal blocks to unfit 'end-users'?

The bureaucrats in the coal and power ministries, who were serving between 2005 to 2008, were playing games. Two Congress ministers of state, namely Rao and Bagrodia were fully involved in allocation of coal blocks when Dr Singh was heading the ministry.

I would say that Bagrodia has played a huge role in the coal allocation. He can be faulted for certain wrongdoings.

Why did Dr Singh, who is considered as Mr Clean, not get alerted when an MP like you was pointing out the grey areas of the policy?

I would say that the prime minister didn't understand 'coal'. He didn't take the issue of free allocation seriously. Far from the talk of him being Mr Clean, I would say right under his nose the loot took place and he looked the other way.

Who played the fixer and how?

When the UPA-I started allotting the blocks they were looking at the end-use of the coal. It was decided that the coal will be used for a specified purpose and won't be 'sold' for any other use. In the process, the government didn't give enough attention to the mining experience of the allottee. The companies came to coal ministry. They were showing everything just 'on paper'.

They told the government while applying for free coal blocks that "we have land here, we have the plant there, we have got the permission from the state government...from the ministry of environment... etc, etc."

They spoke some truth, some lies and managed to get the coal blocks. The way these applicants were treated by the coal ministry, and the way they got the coal was wrong. The officers of the coal ministry were hand-in-glove with the applicants.

'Ex-MoS Bagrodia has played a huge role in coal allocation'

After the exit of Shibu Soren, the ministry was handled by the PM Singh, Rao, and later, Bagrodia came in as deputies. Out these two MoS, who was more active in the allotment of coal?

The fundamental fault was in the policy itself. I would say Bagrodia  has played a huge role in the coal allocation. He knew the real importance of koela (coal). The coal is a national asset. It doesn't belong to the Congress party, minister or to anybody.

Why is it for free? They told me that the country needs coal. Whoever can mine it and produce energy or other important things they should get coal easily. The argument of the UPA was that mining of coal too requires investment. So, if coal is cheap or free then coal-based power will be cheaper.

I believe there is no high technology involved in it. Coal India can develop further and make it more efficient. Coal India has been asking for coal blocks from this government. Since 2008, they have applied for 100 plus coal blocks but this government has not given it any.

SAIL, NALCO, NTPC and the mining development outfits and many other government or semi-government companies are applying for it. They have not been getting free coal blocks.

What was the UPA government's vested interest in allotting coal only to private companies? What is the logic behind not giving coal mines to Coal India which is a Navrtatna company and which is engaged in generating employment?

Once Coal India had 8 lakh people working now it has only 3.65 lakh. This fall is due to the UPA government's policy and ill-treatment of Coal India.

There are so many discrepancies in implementation of coal policy that this government won't be able to answer.

There was one important condition before getting absolutely free coal. The applicant had to give the bank guarantee against royalty. The condition was that if the allottee didn't start coal production in 42 months then the allotment of free coal blocks would be cancelled, the company would be prosecuted and fifty percent of the bank guarantee would be encashed.

However, this government has failed to encash the bank guarantees from the 56 allottees who are not yet mining.

According to our estimate the coal ministry failed to collect bank guarantees amounting to Rs 247 crore from the failed ventures. Many defaulters, who are still holding coal blocks, haven't renewed the bank guarantee. This is the violation of norms. The norms say that 50 percent of bank guarantees should be against the start of production and the balance 50 percent with guaranteed production.

The government has cancelled 24 coal blocks including nine belonging to the private companies but not one company's bank guarantee has been enscashed. Why? The government is saving them, defending them! There were bogus companies working in the field and they are let off. This is a crime.

According to the CAG report, out of 149 companies, 114 companies are such whose time limit to open the coal blocks is over. They have not mined coal. Under the law, which is unambiguous, right now, today itself the coal ministry can cancel the blocks and encash bank guarantees. Why it is not done? Why are you defending the companies who are doing wrong?

(Coal minister) Sriprakash Jaiswal is misleading the country. The government says they would not cancel the coal allotment.

They argue if they cancel the coal allotment there will be loss of power production. This is a lie. They have not been mining coal so where is the question of electricity? Today, electricity is being produced from imported coal or the coal supplied by Coal India.

http://www.rediff.com/news/slide-show/slide-show-1-coal-loot-took-place-under-pms-nose-he-looked-away-hansraj-ahir/20120904.htm?print=true