Madhya Pradesh Chief Minister Shivraj Singh Chauhan is definitely on a dream run as he got a favourable mandate leading to his second innings as the karta-dharta of the state in the year gone by. But he cannot take a breather yet.literally. The latest Central Statistical Organisation (CSO) report has given a thumbs down to the state's growth trajectory. Termed as a BIMARU state by the media and the Central government at large, MP has yet again garnered 4.89 per cent GDP growth between 2004- 05 and 2008-09 as per the latest CSO report. The state is standing where it started from, since Chauhan took over. According to the Planning Commission, MP fared well during 2005-06 standing tall at 6.99 per cent, but it nosedived to 5.19 per cent in the subsequent years to the present-day figure which is half of the national average of 8.49 per cent.
The report also charted out figures on the state's plan size which has blown up from Rs 6,710 crore in 2004-05 to Rs 14,182 cr in 2008-09.
The UPA government has been constantly attacking the BJP government in MP on poor implementation of Centrally-sponsored schemes. Recently, during a press meet, Minister of State for Industries Jyotiraditya Scindia pointed out, "Though the Centre was giving Rs 10,000 cr annually to Madhya Pradesh, the state growth rate was just 4.9 per cent and it was lagging behind Bihar (one of the BIMARU states at 11.03 per cent GDP in 2008-09) on this count. Apart from Rs 10,000 crore, Madhya Pradesh was getting tax and royalty money as well from the Centre."
Apparently, Rahul Gandhi on a recent state visit pointed out that the government neglected Bundelkhand in spite of Rs 3,000-cr funds being released. To this, the CM reacts, "The criticism is for the sake of criticism with no concrete basis. We had been demanding a special package for all round development of the Bundelkhand region and presented a memorandum for this to the Prime Minister. The Centre ultimately declared a package which is inadequate. It should have been of a minimum Rs 24,000 cr. Of this, at least Rs18, 000 cr should have been given for the Bundlekhand region in Madhya Pradesh."Not denying that the CM's army has given it all to develop the state not only on social but economic parameters as well.
Chouhan's democrat schemes and measures to tighten the belts of a slack administration have definitely improved his public image which was also the reason for his comeback. Amongst his popular moves was Jan Sunwai or public hearing programme for open hearing of public and personnel grievances by top government officials. Manthan, an initiative by the government started in 2009, aims at improving governance and delivery systems of government-run schemes. The success of the initiative is visible as the secretariat went for Manthan-II for the bureaucrats to brainstorm on issues pertaining urban administration and development department which included other departmental activities. Alternatively Chouhan's drive against illegal land acquisition and housing cooperatives and a Cabinet committee for pursual of such cases has been widely welcomed. Personnel grievances are also being dealt with. The government has decided to implement a new Police Act for less-political interference in appointments and transfers of police personnel.
Simultaneously, Chouhan seems to be bullish about bringing in fruitful economic partnership in to the state by attracting corporate and NRIs to set up industries and augment investments in various sectors. Chouhan, in the recent Bhartiya Prawasi Sammelan 2010, promised an Integrated Industrial Township for NRIs between Bhopal and Indore and an NRI Cell to look into the problems faced by NRIs to come and set up ventures in the state.
However, Madhya Pradesh, infamous for poor power supply and road infrastructure, proves to be a major halt in the way towards industrial development. The state is thumping to the beats of Incredible India, but is slow as far as industries and commerce is concerned. Chouhan, while addressing the NRI lobbies in the Sammelan, affirmed that a new layout and massive network of quality roads is already on its way of implementation and power supply has also been improved to unmatched levels to what it used to be earlier.
This may be true as the government has recently joined hands with Bharat Heavy Electricals Limited (BHEL) for 1,600-mw thermal power project. The project, which costs around Rs 8,000 cr, is a joint venture in which the state government will have to shell out Rs 400 cr. The Jaypee Group's vertical Jaiprakash Power Ventures is also aiming and investing Rs 2,000 cr for its power projects across India which includes Madhya Pradesh as well.
Besides, the much ambitious Rs 3.6-lakh crore Delhi-Mumbai Industrial Corridor, funded by the Japanese government with the help of Japan Bank of Industrial Cooperation, covers 24 per cent of the total area of Madhya Pradesh. The project will lead industrial development in districts such as Indore, Dhar, Shajapur, Ujjain, Dewas, Ratlam, Neemuch, Jhabua, Mandsaur, Rajgarh, Pithampur, Mhow, Nagda and Nayagaon. This industrial development is proposed to lead to a Knowledge City in Ujjain; with global-standard housing and infrastructure; a multimodal logistic hub near Pithampur industrial area, an economic corridor between Indore Airport and Pithampur industrial area, which includes a Bus Route Transit terminal, IT and R&D industries.
Likewise, the Ministry of Roads and Transport has announced to develop 33 national highways, some of which have been identified in Madhya Pradesh. Every project is to cost around Rs 15 crore to the Central government. Hence, there is a lot of industrial infrastructure development slated to be commissioned without much of the state government's efforts. Obviously the state government will have to coordinate and jointly work with the Central government to help do away with operational and administrational hindrances to see quick implementation of the projects.
Hence there is development happening with or without the state government's efforts, but Chouhan still has a long way to go as far as the challenges are concerned because for a state that has developed a habit of sorts to record 0.5-1 per cent growth on an average and then remain stagnant for another two years, it is difficult to come up with magical growth figures in a year. However, it will be a gradual process, but if a state like Bihar can do this with a GDP of 11.03 per cent this time over, then why can't Madhya Pradesh prove its mettle?
Bureaucracy Today spoke to Chief Minister Shivraj Singh Chouhan for his perspective over the issues. Excerpts:
Q: Your government made a second comeback in 2009. What, according to you, were the reasons that contributed to your success in the last assembly elections?
A: The most important reason for this was that the people of Madhya Pradesh were convinced about our bona fides and were impressed by the palpable development works that we carried out on a war footing during our first term. They had seen the worst-ever days before this -- roads in the state were a butt of jokes, the state was plunged in darkness threatened to be drawn back to lantern age, gross neglect of farm sector and irrigation, poor service delivery and so on and so forth. From day one in power, our government pitch in to change the scenario for the better with a firm determination and passion. We paid equal attention to infrastructure and social sector. This made the people realize that our government means business and if returned to power would certainly take the state to new heights of development while at the same time ensuring welfare of all sections of society. So, we hardly had to do anything very special to woo them to vote for us.
Q: There have been some very good efforts from your end to improve the governance in the state. Jan Sunwai or public hearing programme of government officials, right from the State Secretariat down to the district level, has turned out to be a huge hit. What more can we expect on this front?
A: I do not live in an ivory tower. That is why I do not think that all is hunky-dory. I fully realize that a lot still remains to be done in bridging the gap between the system and the people. It takes ages to change the mentality and psyche of those at the helm of affairs in administration and government. The deep-rooted tendency of complicating and inordinately delaying things through official chicanery and officialism will take considerable time to go. However, the practice of public hearings right from top to bottom levels would certainly make a dent in the administrative inertia and inefficiency. Encouraging results have already started coming out. I was told that the number of petitions in the State Human Rights Commission has considerably come down following holding of public hearings. The babus would definitely be rid of the tendency of entangling things in officialese. As I said earlier, it will take time. But one thing that I would like to lay stress upon is that an atmosphere should be created wherein people would not hesitate to speak out against any irregularity or officialdom. Besides, we are making the best possible use of Information Technology for redressal of public grievances. Our Samadhan Online programme is a great success.
Q: There has been constant criticism that Bundelkhand has not been taken seriously by your government in spite of development funds being released by the Centre. How do you react to this?
A: The policy of our government has always been to pay greater attention to less-served and less-developed areas. The criticism is for the sake of criticism with no concrete basis. Bundelkhand has been reeling under a severe drought spell for years together. The Centre provided not a single penny to deal with the situation arising out of years of drought condition and the state government spent over Rs 500 cr from its own resources. We had been demanding a special package for all round development of the Bundelkhand region and presented a memorandum for this to the Prime Minister. The Centre ultimately declared a package which is inadequate. It should have been of minimum Rs 24,000 crore. Of this at least 18,000 crore should have been given for the Bundlekhand region in Madhya Pradesh.
We have tried our level best for development of the Bundelkhand region from our own resources. We have set up a government medical college in Sagar. We have also got the docks cleared for Bina refinery which would greatly help the region in terms of employment creation and spin-offs. We have also set up a Bundelkhand Development Authority which is working towards all round development of the region.
Qn: Madhya Pradesh scored an average rate of 4.89 per cent DGP growth between 2004 and 2008-09, according to the latest CSO report. What are the challenges that the government faces in the present-day scenario to achieve better growth?
A: I have some reservations about the statistics. In fact, by dint of our prudent fiscal management, the economy has been constantly looking up over the last six years. GDP, economic development rate and per capita income have increased, which has been praised by the Central Government. Madhya Pradesh posted an impressive GDP growth rate of 5.57 per cent, as per advance estimates of year 2008-09, which was 4.75 per cent in 2006-07. This achievement assumes greater importance in view of the fact that the All India Growth rate has constantly decreased. It was 9.75 in 2006-07, 9.01 per cent in 2007 and 6.7 per cent as per the advance estimate of year 2008-09.The state has been able to properly utilize the funds for development. Plan expenditure of the state in 2003-04 was only 26.26 per cent, which has gone up to 38.91 per cent in 2008-09.
The public expenditure is 23 per cent of the GDP whereas at national level, it is only 17 per cent. While criticising the present government, one should remember that in the last four years of the Digvijay regime spanning ten years the growth rate of Madhya Pradesh was stuck at -1.44 per cent, whereas in our six-year regime, it has gone up to 6.11 per cent, despite world wide economic slowdown and widespread drought situation in the state. The salary bill has swelled from Rs 8,000 cr to Rs 14,000 crore. The state share from the Centre is also likely to be reduced by Rs 1,200 cr. We have never crossed the debt limit fixed by the RBI and the funds obtained thus are not being diverted to unproductive works. However, I do not claim that all is gas and gaiter. We still have a long way to traverse. Things are looking up.
Another point that I would like to stress is that the CSO statistics do not include the figures of 2008-09. In fact, we have been best in agriculture, mining and infrastructure sectors. In the agriculture sector, the all India growth was 1.6 per cent against which it was 5.61 per cent in Madhya Pradesh. The state registered a growth rate of 4.1 per cent against 3.6 per cent at the all India level in the mining sector. Similarly, Madhya Pradesh registered a growth rate of 4.4 per cent against 2.4 per cent all-India level in the manufacturing sector.
Q: In recent review of utilisation of budget of various departments in the state, the Planning Department found that several important departments failed to use funds allotted to them within the designated time-frame. What is your reaction to this?
A: As far as the overall utilization of funds against the budgeted provision is concerned, the percentage has been increasing on year-to-year basis. In order to utilize the allocated funds within a designated time-frame, all round efforts are being made by gearing up the state machinery as well as by putting pressure on release of funds from the Central ministries.
Non availability of timely release of Central shares of various Centrally-Sponsored Schemes is also one of the major reasons for the slow pace of expenditure. Then there are elections end on end - first Parliamentary elections followed by Assembly and then Panchayat elections. The model code of conduct that comes into force for these elections brings all development activities to almost a halt.One thing that I would like to specially mention here is that though the utilization of Additional Central Assistance (ACA) is the best in the country, as admitted by the Planning Commission of India, we are making efforts to secure the release of allocated ACA in full and ensure its utilisation too.
Q: What made you feel the need of a new industrial policy that is slated to be on tables till April 2012. The Singur like flare-up against an Essar plant in Singrauli district. Now a revolt is brewing in Narsinghpur district against a similar project. How is the government planning to tackle this? What are its preparations?
A: In MP the situation is not like that of Singur. We are live to the issue and have full sympathy for the farmers affected. We have taken steps to address the grievances of the farmers and I have come out openly in favour of the ones who got hit on account of industrialization of this nature. My government is committed to the cause of the affected families. We are constantly talking to the concerned people so that no one misuses communication gap of any sort.
Q: In the recent Pravasi Bharatiya Sammelan, the announcement of an independent industrial township developed for NRI between Bhopal and Indore and an NRI Cell has raised some hopes among corporates to set up industries in the state. What are the developments on this front?
A: The industrial policy of the state is being made investor-friendly on the basis of the inputs we received from the prospective investors and on our own experiences. As for setting up of a township and the cell is concerned, this is a very recent announcement and we are working out the nitty-gritty. We are committed to making it happen.
