Nitish’s political master stroke
6 April 2013 3:40 AM GMT
The recent induction of Narendra Modi to the parliamentary board of the Bharatiya Janata Party (BJP), has added one more chapter to the cold war between Janata Dal (United) and its no-as-secular ally. The BJP has been slowly pushing the envelope and this NDA partner has been resisting. When a chief minister of an opposition ruled state makes a visit to the New Delhi Durbar to meet Manmohan Singh, there is reason enough to follow it. When that chief minister in question is Bihar’s Nitish Kumar, one must sit up and take notice. This swift forward move from the backward state’s satrap is partly designed to polish Nitish’s ‘fighter for Bihar’ image. Additionally, this also gives a clear signal to its supposed ally in Bihar, the BJP, that his party is not averse to two-timing. The ball is in the BJP’s court as this puts pressure on it to anoint a prime-ministerial candidate agreeable to Nitish’s party, Janata Dal (United). The BJP secretly wishes that New Delhi does not go ahead and grant a substantial special package or the coveted ‘backward’ status to Bihar. Any such move from New Delhi will constrict the options in front of the BJP even more. It then has to match the Indira Congress bribe or play distant. The matching bribe may come in the form of a more Nitish-friendly prime-ministerial candidate for the NDA. Additionally, Nitish may simply call any grant from New Delhi inadequate and derive some kind of understanding from the BJP in that front if NDA comes to power. In short, Nitish’s Bihar can have its cake and eat it too. Nitish has played a master stroke.
Sometimes such politicking overshadows genuine and substantive issues at hand. Case in point is the whole issue of ‘backward’ status or special financial package for Bihar. Bihar is one of the ‘sick’ or BIMARU states of the Union whose mineral wealth has been actively mined for a very long time. The clues to its special, but not unique, situation are to be found in the enthusiasm with which ruling party leaders from two other states – Orissa and West Bengal, have come out in support of Bihar’s plea and have added their own name to the queue.
To many, this might even appear to be an opportunistic gang-up moment to extract as much as one can from a fragile government with thinning numbers in the Lok Sabha and unsure of the reception at the hustings next time. And that is exactly correct. But what is forgotten in this age of short policy memory is that New Delhi shares a major part of blame for the pathetic industrial scenario in these states for decades – not as an innocent bystander but by active policy.
The mineral rich states of Orissa, erstwhile Bihar (with Jharkhand) and West Bengal have been devastated for decades by the freight equalisation policy of the centre. By this policy, the central governmental would subsidise the transportation cost of minerals from mining zones to anywhere else in the Union. Basic ideas of efficiency and cost considerations were thrown to the wind as the centre decided to create an artificial system by which production factories could now be uncoupled from the mines themselves. The locational and natural advantages of these states were neutralised by subsidisng their deindustrialisation. This process went on for four decades, from 1952 to 1993. In addition to other factors, the present industrial map of India is based on the policy driven destruction of the competitive advantage of the mineral-rich states.
These eastern-states are textbook cases of what devastation centralist policywallahs can do in a pseudo-federal polity. The begging bowls in the hands of these states are not accidental, as these states have never received any reparation for this punitive central policy. That is long due. If the centre is too broke to give reparations, then a genuine federal solution must be found where states would control mineral revenues found under their soil. It is absurd that coal-producing states often pay more to the centre than non coal-producing states to buy their own coal. Revisiting the central, state and concurrent lists are the need of the hour. There is a limit to New Delhi keeping states at tenterhooks by dangling the carrot of central grants. Local control of revenue will blow the cover of this false sense of importance. (IPA)
Sometimes such politicking overshadows genuine and substantive issues at hand. Case in point is the whole issue of ‘backward’ status or special financial package for Bihar. Bihar is one of the ‘sick’ or BIMARU states of the Union whose mineral wealth has been actively mined for a very long time. The clues to its special, but not unique, situation are to be found in the enthusiasm with which ruling party leaders from two other states – Orissa and West Bengal, have come out in support of Bihar’s plea and have added their own name to the queue.
To many, this might even appear to be an opportunistic gang-up moment to extract as much as one can from a fragile government with thinning numbers in the Lok Sabha and unsure of the reception at the hustings next time. And that is exactly correct. But what is forgotten in this age of short policy memory is that New Delhi shares a major part of blame for the pathetic industrial scenario in these states for decades – not as an innocent bystander but by active policy.
The mineral rich states of Orissa, erstwhile Bihar (with Jharkhand) and West Bengal have been devastated for decades by the freight equalisation policy of the centre. By this policy, the central governmental would subsidise the transportation cost of minerals from mining zones to anywhere else in the Union. Basic ideas of efficiency and cost considerations were thrown to the wind as the centre decided to create an artificial system by which production factories could now be uncoupled from the mines themselves. The locational and natural advantages of these states were neutralised by subsidisng their deindustrialisation. This process went on for four decades, from 1952 to 1993. In addition to other factors, the present industrial map of India is based on the policy driven destruction of the competitive advantage of the mineral-rich states.
These eastern-states are textbook cases of what devastation centralist policywallahs can do in a pseudo-federal polity. The begging bowls in the hands of these states are not accidental, as these states have never received any reparation for this punitive central policy. That is long due. If the centre is too broke to give reparations, then a genuine federal solution must be found where states would control mineral revenues found under their soil. It is absurd that coal-producing states often pay more to the centre than non coal-producing states to buy their own coal. Revisiting the central, state and concurrent lists are the need of the hour. There is a limit to New Delhi keeping states at tenterhooks by dangling the carrot of central grants. Local control of revenue will blow the cover of this false sense of importance. (IPA)
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