Saturday, 11 July 2015

Four years of trials and tribulations, atrocities

After registering a victory on a welfare and development plank in the Assembly polls, ADMK chief Jayalalitha took over the reins of Fort St George for the fourth time on May 16, 2011.The government rolled out impressive schemes like distribution of free mixers, grinders, fans, milch cows, goats, gold coin and solar powered green houses. She promised to make TN a power surplus State and globally preferred destination for investments.
 But four years down the line euphoria has died down. It was said that administrative chaos and paralysis caused by Jayalalitha’s earlier conviction in assets case has impacted governance, bringing most projects to a halt as if earlier during her presence in the citadel of power everything was rosy and the State was on speeding on progressive path. But it is not so and the fact is that it is the cumulative effect of reckless and irresponsible regime for four years led by Jayalalitha directly and by proxy for about seven months now.
While much was publicized about the free schemes, very little was exposed by the ‘investigative, media in Tamil Nadu, which preferred to be more servile on commercial considerations than being, true its readers and self-professed ethics. But the upcountry journals such as Tehelka now and then brought out the mega scandals such as in the free laptop distribution scheme, free milch cows scheme etc., Of course, now there were reports in the local media about diversion of free rice meant for PDS being diverted to ruling party people for their business.
Four years down the line, the State should have been on a fast-track of growth according to the Vision 2023 programme unveiled by Jayalalitha with much publicity. But administrative inefficiency, chaos, confusions and paralysis have impacted governance. As a result, many on-going projects started during earlier DMK rule have been stalled and no new major project has been initiated in all these four years. The proposed global investors’ meet had to be postponed twice, sending the industry into a tizzy. The State is yet to meet and far away from the targets of growth set by the present regime.
Experts say that lack of emphasis on growth and development would make sustenance of welfare schemes precarious in future. The State set an ambitious double-digit growth target year on year, till 2023, but what is achieved is significantly low. “First two years of the governance were full of euphoria, with ambitious and numerous welfare schemes being rolled out, but there has been policy stagnation in the last two years. The State is not able to achieve its potential growth and it is difficult to achieve its initial target, as the necessary base for high growth has not been set. Growth-oriented policies need to be activated in industries, and services sector,“ said D K Srivatsava, a noted economist.
Infrastructure development is not impressive. As soon as she took over power, she stalled major infrastructure facilities such as the Chennai port-Maduravoyal elevated expressway and many national highway projects started during DMK rule. Improvement of Tuticorin-Kanyakumari highway with nine by passes covering 13 towns, three major bridges and one rail over bridge is an ambitious programme for down south. This will ease movement of vehicles from Chennai to Kanyakumari, but only one of the eight packages has begun till date. Government orders are yet to be issued for projects like Rs.1,020 crore performance based road contract for five years in Ramanathapuram and Krishnagiri districts, and Rs 275 crore high-level bridge at five point junction in Salem.
The global economic crisis may have affected the manufacturing hub of Tamil Nadu but the climate could not improve in the State when there was a revival of sorts across the globe subsequently. Inaccessibility of the power centre and very high level of corruption in the administration have slowed down things in the State. “The stagnation will not help meet the target as envisaged in the 12th plan and vision 2023, the ambitious documents targeting growth of the economy ,“ says K R Shanmugam, director, Madras School of Economics.
One of India’s top industrialised States with an 8% contribution to the national output, TN was once the darling of foreign investors. The State attracted a slew of foreign investors. The State’s Oragadam and Maraimalainagar belt currently houses some top automotive names like Ford, Hyundai, Renault-Nissan, Yamaha, Daimler India Commercial Vehicles, Royal Enfield etc and Chennai is a recognised automotive hub.
And not just automobiles. More than 3,000 companies, both Indian and global, have set up base in Tamil Nadu. With an average growth rate of 7.29%, which is nearly double that of the national average of 4.74%, it was one of India’s top investment destinations.
So far so good. The trouble is Tamil Nadu’s reputation as an industrial hub isn’t what it used to be. Several factors have contributed to this. For one, the crippling power shortage that impacted industrial production and sharply pushed up overhead costs three years ago severely dented the State’s investment reputation. Add to that the inaccessibility of the power centre (Jayalalitha) and apathy of the government to intervene and settle labour disputes affected big investors like Ford, Hyundai, Nokia and others and it’s no wonder that TN started losing out to other States in the high-stakes game of attracting big investment.
Contract manufacturer Foxconn shut down its factory in Chennai after the Nokia plant was closed triggering more unfriendly attention on TN’s business climate. “There was a lot of optimism in the beginning when the ADMK government came to power. But that optimism soon dwindled. The auto industry was in recession in 2012 and 2013. Moving forward, we anticipate better days ahead,“ said a senior official of a city based industrial house.
TN is fast getting relegated to the last position in India as revealed by the report of the CSO on GDP growth rate in 2012-13 with Bihar 10.73%, Gujarat 7.87%, Kerala 8.24%, Andhra 5.08%, and Tamil Nadu at 18th place with mere 3.8%. During DMK rule industrial development in 2009-10 was 20.93% and GDP growth 28.18% and now in ADMK regime in 2013-14 it was 1.61% and 1.31% in 2012-13 respectively. The difficulties faced by investors in the State had been pointed out by the media. The industries started during DMK rule were closing down one by one.
Tamil Nadu’s finances are under some strain with commercial tax revenue falling short of expectations, leading to a deficit in the revenue account. The State’s fiscal deficit is inching up to 3% of GSDP , which according to economists is not a good sign. The soon-to-be implemented Goods and Services Tax regime and the pay commission recommendations for government employees set to be implemented later next year may squeeze the State more. Not unexpectedly, Chief Minister O Panneerselvam recently raised an alarm over the fiscal situation and sought more funds for projects from Niti Aayog.
The latest budget revealed the tight finance position. Panneerselvam projected a revenue surplus of Rs 289.36 crore when the budget was presented by him last year. But the State is likely to have ended 2014-15 with a deficit of Rs 3,536.78cr or more. With the situation not likely to improve in the coming year, the revenue deficit is expected to touch Rs 4,616.02 crore. Consequently, the fiscal deficit is estimated to be more than 3 percent for 2014-15 while the Fiscal Responsibility and Budget Management Act says fiscal deficits of States and the Centre should be within 3% of the domestic product.
“The State is more or less dependent on liquor revenue. Nearly 25% of the total tax revenue is from liquor revenue and the State has reached a saturation point from this source,“ said economist R Srinivasan.
With GST’s impact on the State’s revenue unclear and the 14th Finance Commission reducing the State’s share of Central tax revenue, the State administration should tune itself to taxing services better and mopping up revenue other sources, said Srinivasan.
In its 2011 election manifesto, AIADMK had promised to transform power starved TN into an energy surplus State in the first two years. It said it would enhance power generation to drive economic growth. An additional Rs 1.2 lakh crore of income would be generated and the State would emerge as a multi-faceted economic super power, the manifesto claimed. Four years down the line, those promises remain a pie in the sky.
Tamil Nadu was reeling under severe power cuts then, ranging from 12 to 14 hours a day in most rural parts of the State. And ADMK’s promise to remove darkness that had engulfed the State and light it up by harnessing energy from all sources, including municipal waste and solar power caught public imagination. Promises flowed like water. By 2012, the new government had plans to add 5,000MW additional power generation capacity. During the same period, 151 municipalities in the state were to generate 1,000MW of power from urban waste, a step which would have helped transform themselves into carbon-neutral cities.
By 2013, the government had to set up 10 solar power parks, each with a capacity of 300MW (in all, 3,000MW in solar sector). All street lights in rural TN would be powered by solar energy and uninterrupted power supply would be ensured to those below poverty line. And the three-phase power connection would be made available in all villages and towns, it was promised.
The party also had plans to reform the utility to make it more consumer-friendly. The distribution system was to be reconfigured and segregated to create separate feeders for domestic, industrial and agricultural sectors like Gujarat. With a view to checking power theft, it proposed to set up a rapid action team comprising ex-service personnel to carry out raids.
What has been achieved in the last four years terribly falls short of the promises, said retired bureaucrat and power-sector expert M G Devasahayam.“TNEB achieved virtually nothing of what the government promised. The State was saved by some rain and wind energy. The utility survived so far by purchasing power at exorbitant rates, thereby landing itself in a financial mess,“ he said.
On the agricultural front, the ADMK government failed to release water from Mettur dam on the due date in June first week for Kuruvai cultivation in delta districts during the last three years resulting in the failure of crops and mounting debts of farmers. This year also the release of water is uncertain. But Jayalalitha arranged a felicitation function for herself in Thanjavur for getting the final award of the Cauvery River water dispute tribunal notified in the Central gazette. But the notification on papers does not bring water unless the State government fights for its due share and get it. The paddy farmers of delta region were thus duped and betrayed.
The ADMK promised to pay Rs. 3,000 per ton of sugarcane but on coming to power it kept reducing the State government’s support price by Rs.100 every year from MSP of Rs 650 paid during DMK rule. But even this amount was not paid by private mills for two years and they paid on Rs.2200 instead of Rs 2650. With increasing prices of fuel, fertilizers and production expenses and insufficient prices offered by private sugar mills, sugarcane cultivation is getting reduced every year. Without proper support from the government danger of mills closing down is lurking large. The executive condemns the indifferent attitude of the government and urges it to find solution for the problems of sugar mills and sugarcane growers and pay price of Rs.3,500 per ton.
Ever since Jayalalitha assumed office in 2011, law and order situation has been deteriorating day by day and according to the information of Crimes Record Bureau in 44 months since the ADMK came to power, there were 7,805 murders, 79,305 robberies and 4,697 incidents of rape. In 2014 alone 1,489 property related crimes, 1989 robberies, 1678 murders, 6,826 cases of molestation, sexual nuisance, hijacks and dowry cruelty, 4,254 case under sexual violence act were registered.  A lawyer was murdered in court complex, relative of a minister killed, Ramanathapuram district judge’s house ransacked, schools becoming murder fields, safety of elders, children and women in jeopardy, workers of all parties murdered but even in important cases of murders the culprits were not nabbed.
With O. Panneerselvam as benami Chief Minister administrative chaos and confusion deepened further and no decision could be taken. The administration has been encroached by advisors and oscillating. Many projects started during DMK rule were wound up and no steps taken for improving infrastructure, suitable solutions not found for problems in education and health departments, the annual conference of district collectors and SPs not conducted in 2014.
Ministers were fully engrossed in prayers, yagas, homams, milk pot carrying and other religious offerings for their ‘Amma’ and in ‘collection of bribes’ in their respective departments. The Cabinet meeting was held only once in seven months; competed projects were not inaugurated awaiting the arrival of somebody; though Metro Rail project was ready for inauguration the government was indifferent; the Governor’s address was directionless and opposition parties were not permitted to express their opinions in the Assembly.
The issues of farmers, fishermen, weavers are not resolved. The free goods offered by the government were sub-standard and unusable by people, so also the free cow and goat distribution was a failure. The total debts of the State government had exceeded Rs. four lakh crore. Thus the State administration has deteriorated in all fields and earned the bad name of ‘the last State in India’.
The Tamil Nadu Assembly, with a great tradition, is now witnessing the spectacle of walkout by opposition, Speaker evicting members of opposition parties with political malice, ruling party legislators and ministers criticizing leaders of opposition parties and former CM in undignified manner, the whole stock of ministers raising in protest against any reference to a convicted person, ministers reading out prepared notes for longer times and not allowing opposition members to speak, ruling party members using un-parliamentary epithets for criticising  Kalaignar and Leader of the opposition Vijayakanth and those who protest evicted by the Speaker. The five-time Chief Minister Kalaignar is not provided with seat in consideration of his health consideration by the uncivilized regime. As long as Jayalalitha was the CM she monopolized reading out announcements under rule 110 but none of them implemented and not informed to the ‘assurances committee’ of the House. The working days of the Assembly had been reduced and no time given for raising important issues. The Assembly is misused for singing in praise of Jayalalitha without opportunity for democratic debates and to raise people’s issues and turned into ‘ADMK Peravai’.
Above all, the ADMK regime, which earlier had the notorious reputation of ‘15 Percent regime’ after a Russian firm filed a petition in the Madras High Court alleging that it was denied contact because it refused to pay 15 percent commission demanded by the high command, is not openly branded as ’45 percent commission regime’ by contactors of the PWD, a department held by Chief Minister Panneerselvam. They have publicized the top ten names of engineers who take commissions and also lodged a complaint with the DVAC. Another poster bearing the names of Top 10 corrupt IAS officers who caused a loss of Rs.10,000 crore have been splashed all over the city. But till date the government side either did not deny the allegations or filed defamation cases as it used to be, leading people to believe that they are all true.
Thus, the last four years of the ADMK regime, led directly for most part and through a benami for some months by Jayalalitha, marked the period of trials and tribulations and atrocities and brought ignominy to the State of Tamil Nadu!         r (24-05-15)

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