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STATES, REORGANISATION
Breaking Even
There
was euphoria in the Uttaranchal, Vananchal and Chattisgarh regions when
Parliament passed the bills for their statehood. INDIA TODAY examines
how justified the celebrations were
UTTARANCHAL
Poor Cousin
The
amputation of Uttar Pradesh may not bring prosperity to Uttaranchal. The
only significant earner in the 13 districts that will comprise the new
state is the tourism industry which rakes in about Rs 250 crore every
year. But tourism is a seasonal business and cannot sustain a state. With
no major industries and limited job opportunities, the region subsists
on a "money-order economy", depending almost entirely on remittances
from migrants.
"Those
who question the economic viability of Uttaranchal are conspiring to stall
the creation of the state," laments Naveen Joshi who has been associated
with the Uttarakhand movement and writing profusely in its favour. Joshi
claims the state can be self-reliant and has tremendous potential in the
information technology industry as well as new power projects, besides
the booming tourism industry. He also points at the scope of fruit-processing
units and medicinal plants in making the state self-reliant.
Joshi's
optimism about its potential misses the real tragedy of Uttaranchal. Despite
having scores of rivers and streams, no major hydro-electricity project
has come up in the region since independence. Similarly, hardly any attempts
were made to boost the fruit-processing industry in the region or to initiate
commercial production of the medicinal plants. Harvested fruit often goes
waste or is sold at rockbottom rates to traders from the plains. Medicinal
plants are either smuggled out or sold cheap. N.B. Bhatt, another activist
from Uttaranchal, says the new state will lag because "it would have
the same set of politicians".
The creation
of Uttaranchal may change the political contours of the parent state.
The hills are a traditional saffron bastion with an upper-caste majority.
Though it would have an overwhelming majority in the new assembly with
17 of 22 current MLAs in the House, the BJP would be precariously perched
in the parent state with the loss of so many legislators. However, there
is no immediate threat to the coalition Government led by Chief Minister
Ram Prakash Gupta.
-Subhash Mishra
VANANCHAL
Bread Earner
When
Parliament passed the Bihar Reorganisation Bill, 2000 on August 2, clearing
the way for a new Jharkhand -- or Vananchal -- state, people poured into
the streets in Ranchi to celebrate. Drumbeats and frenzied calls of "Jai
Jharkhand" filled the air while banners hailing the six-decade-long
struggle fluttered gaily in the breeze.
People of
the future Vananchal have reasons to celebrate. One of the many anomalies
in Bihar was that the southern districts contributed almost two-thirds
to the state's revenue collections. Of the Rs 1,700 crore collected in
sales tax in Bihar last year, Rs 1,200 crore came from the districts that
will comprise Vananchal. Of the Rs 850 crore Bihar earns in royalty for
the mining on its land, Rs 700 crore comes from the mineral-rich south.
Major industries like Tisco, Telco and sail too are located in this region.
But in spite
of all this, the southern districts have remained oases of underdevelopment.
Only a fraction of what they contribute is ploughed back into the southern
districts while north Bihar, which has 65 per cent of the state's population
but contributes only a third of the total revenue, gobbles up the rest.
The impending
divorce will change all that. Of the estimated Rs 4,200 crore collected
in revenue annually, the new state will get Rs 2,215 crore while the truncated
Bihar will be able to collect only Rs 1,985 crore. Since assets and liabilities
are shared on the basis of population, the more populous north Bihar will
have to bear a larger chunk of the state's Rs 14,825-crore public debt.
The only
silver lining for the residual state will be the enhanced share in Central
taxes which is also decided on the basis of population. Of the estimated
Rs 5,200 crore received as the share of Central taxes, the residual state
will get about Rs 3,640 crore while Vananchal will have to be content
with Rs 1,560 crore. With a total revenue of Rs 3,775 crore, Vananchal
may be able to climb out of the poverty that north Bihar had imposed on
it.
It is still
too early to say who will form the new government in Vananchal after it
parts with Bihar. The existing MLAs from the region will automatically
become members of the Vananchal assembly. Being the single largest party
with 32 MLAs, the BJP will certainly stake its claim to form a government.
Sources say the likely candidates are Union Minister of State for Forests
and Environment Babulal Marandi or Karia Munda.
But the
Congress (11) and RJD (9) may rope in the support of JMM (Soren) leader
Shibu Soren to form a government. Soren has staked his claim for chief
ministership even though his party will have just 12 legislators in the
82-member House. Vananchal may eventually get a coalition government comprising
the BJP, JMM (Soren), Samata Party (5) and JD (U) (3). The four parties
will have 52 MLAs in the 82-member House.
-Sanjay
Kumar Jha
CHHATTISGARH
Step Child
Chhattisgarh
is among the most backward regions in the country, with a predominant
tribal population and a dominant political class. The region is rich in
minerals and earns a handsome royalty from mining activity for the state
exchequer. The region is also the rice bowl of the state, supplying foodgrain
to almost 600 rice mills. Chhattisgarh accounts for more than 70 per cent
of India's total production of tendu leaves that are used for making bidis.
About 70 per cent of the total revenue generated in Madhya Pradesh comes
from this region, earning Rs 500 crore just from Central excise.
Given all
this, it is inexplicable that poverty pervades the 16 districts comprising
the region. That's because the money that Chhattisgarh earns is not ploughed
back into the region. As a result, the region has for long nursed a grudge
against the rest of Madhya Pradesh which has treated Chhattisgarh like
a colony.
The passing
of the Madhya Pradesh Reorganisation Bill, 2000 by the Lok Sabha on July
31, paving the way for a separate Chhattisgarh state, may change all that.
Once the 90-member assembly comes into being and a government is formed
in the state, Chhattisgarh may expect better days. The Congress, which
has 48 of the 90 MLAs, is all set to form the government. But if BJP leaders
are to be believed, their party -- which will have 36 MLAs in the new
assembly -- has set in motion a "secret plan" to give the Congress
party a tough fight.
Chhattisgarh
is already suffering from an oversupply of politicians. The Congress alone
has over half a dozen leaders with chief ministerial aspirations. Most
have already started lobbying. Among the names doing the round in the
political circles are the Shukla brothers, Vidya Charan and Shyama Charan,
AICC General Secretary Ajit Jogi, AICC acting Treasurer Motilal Vora,
party MP Charan Das Mahant and state ministers Ravindra Choube and Satya
Narayan Sharma.
In the BJP
camp, Ramesh Bais, the party's state in charge Lakhi Ram Agarwal and Raipur
MLA Brijmohan Agarwal are seen as potential candidates for the chief minister's
post.
Leaders
of the both parties have also made the location of the state capital and
high court a point of contention. Some of them are in favour of Raipur
being made the capital while others feel that Bilaspur would be the better
option.
-N.K.
Singh
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