MAHARASHTRA INDUSTRIAL POLICY: DESIRABLE FEATURES

DRAFT MAHARASHTRA STATE INDUSTRIAL POLICY
(SUBMISSION to the Principal Secretary, Industries,Energy & Labour Department, Government of Maharashtra. DATED 30.6.2011)


PART I - MAHARASHTRA INDUSTRIAL POLICY: DESIRABLE FEATURES

Industry has a major role in the national and particularly Maharashtra economy. The other two major components are the agricultural activity & services. But services are largely dependent on agriculture & industry. Thus industry is increasingly becoming a backbone to provide for basic needs of increasing population, to employ increasing number of working men & women & also to have a proper place of honor in the industry both at national and global level.

The efforts for industrial development during early decades after independence were in line with the planned development model of socialist countries while the efforts since 1991 have been oriented towards IMF/WB model of globalized market-centred private effort approach.

At present the industrial picture is mixed. Thousands of small-scale industries have been closed down & many medium & large-scale industries have become sick or have been taken over by foreign MNCs. New breed of small and medium industries are coming up. Simultaneously several industry-houses have ventured abroad by taking over units there – both small and big. We have to wait and see if they can make a success of them!

1.1 Rquired Bharatiya Perspective
It is necessary to have the Bharatiya perspective of “industry”, lest the policy will conform only to the post-industrial revolution western concepts.

1.2 The Right Development (Samyak Vikas) Path
The industrial policy has to be an integral part of the national (and state) development as well as economic policy. In fact state should first formulate the Right Development (Samyak Vikas) Policy for Maharashtra. The following guidelines are desirable.(Ref 1)

1.3 SAMYAK VIKAS Guidelines for Industrial Sector
1 The economic policies pursued should basically be in tune with the tenets of Samyak Vikas, the right development path must be adhered to in its true spirit.(Ref 2)
2 Integral view of geographical areas, economy sectors, sections of society, all round development of individuals is to be taken. All walks of life including social, cultural are to be optimally developed. Sub–optimization will create problems.
3 Use of natural resources must be within their sustainable capacity. This capacity can be enhanced with benign policies & actions. Sustainable development is an essential constituent of Samyak Vikas.
4 Realize full potential of technology. Use of appropriate technology
5 Development should be through social consciousness (Janachetana)- a mental frame of mind where even common people are inspired by the urge to improve and are ever prepared to work with initiative for realization of the goals.
6 Act on principle of decentralization within the state. Complementary centralized approach for dealing with giant problems & schemes as well as foreign institutions or MNCs may be used as necessary.
7 Dharma as the guiding & regulatory principle. Work for freedom through self-regulation, independent regulation, and government regulation in that order of preference.(Ref 3)
8 Present & implement right yardsticks for development & evaluation.
9 Harness non-economic motivations like patriotism, sense of duty/responsibility, pursuit of excellence etc.
10 Taking the fruits of development to the disadvantaged sections on priority (Antyodaya)
11 Promotion of a concept of “industrial family” balancing and furthering interests of all stakeholders instead of a normal picture of antagonistic stakeholders (owners, managers, workers, suppliers, consumers and the outlying area where the unit is situated)
12 Treating national interests as paramount over any sectional interests

1.4 Objectives of Industrial Policy
1 To realize objectives of national security & self-reliance
2 Fulfilling requirements of the population & primarily its basic needs by converting raw materials into the required goods.
3 To provide gainful employment to the working age population
4 To improve industrial processes for better utilization & conservation of resources
5 To lay basis for long-term balanced, sustainable & rapid development,
6 To foster innovation & benign technological improvements

To achieve the Industrial Policy objectives and under the guidelines of Samyak Vikas, the following policy steps need to be taken.

1.5 Size of industry
A realistic two-pronged strategy can be envisaged as a major component of policy rgarding size of the industry:
1 Co-option & Extension of Decentralized Industrial Network
1.1 With rapid strides in the Information technology and communication sector it is today realistic to think of a national grid of decentralized industries all over the country that are networked. This will blend high technology with traditional skills and thereby set up an industrial base, which would be best suited to our concept of development. Where necessary, infrastructure will need to be built up.
1.2 Such a process of industrialization will sustain environment, utilize local skills and resources. As an added advantage, the industry will move out of the confines of a few urban centers.
1.3 Existing centers of decentralized production offer a good starting point for initiating efforts in this direction.
1.4 The large class of artisans as well as operators of traditional technology can be co-opted, with due training where required.
1.5 In fact the aim should be to make family as basic operating unit as far as possible. With rapid strides in computing, nanotech and flexible operating systems this should be possible to a large extent. This will usher in not only an industrial revolution but a social revolution too by dismantling that baneful crowded factory system.
1.6 The mother industry can take initiative to foster such family units provide them work and guidance and coordinate their work through IT networks.
1.7 Promotional, institutional & legal mechanisms shall be devised to increase appropriate linkages among cottage, small, medium & large industries.
2 World Class Bharatiya Corporations
2.1 The exploitation, inequalities and environmental damage wrecked by Corporations inspired by the western view is too painfully known.
2.2 In order to effectively fight these amoral entities we need powerful economic players. The state shall encourage world class Bharatiya corporations who would view consumption as a means and demonstrate to the world that economic development need not be a zero sum game.
2.3 The twin pronged strategy of reviving the old decentralized industrial network with modern back up and efforts to create world class Bharatiya Corporations based on Bharatiya Vision, will lead to the right form of industrialization.

1.6 Prioritization of industries
1 While setting up new & encouraging existing industries, a sense of priority shall be maintained.
2 Industries to be encouraged
-based on agricultural raw materials available nearby
-based on minerals available nearby or within the country.
-based on talent locally available
-cottage, tiny, small, medium, large industries generally in that order
-industry in co-operative sector where the members themselves are participating in the day-to-day operations.
-labour intensive
-those specified in the plan (national, state, district etc) or fulfilling plan objectives in a better way,
-self-supporting (not requiring permanent props like subsidies, lower taxes etc.)
-producing goods of needs category
-goods with large value-addition using local talents
-industrial units by artisans themselves
- Industries which provide jobs to those who live in the vicinity of the manufacturing unit
3 Industries to be discouraged
-polluting industries
-energy guzzling ones
-harmful products
-hazardous
4 Other industries may develop on their own getting normal facilities

1.7 Balanced industrial development
1 Balanced industrial development of various regions shall be attempted. However certain regions may not be suitable for modern day industries & they may concentrate on non-industrial economic activities.
2 The industrial areas shall be interspersed with residential areas so that the employees do not spend excessive time for traveling to work.
3 Where feasible, educational institutions should also be located near industries so that the students can get practical training & the industry the suitable talent.

1.8 Location of Industry
1 A comprehensive industrial location policy shall be formulated to include & improve upon the various present guidelines
2 Generally big industrial units shall not be located in the crowded cities. Existing units shall be encouraged to move out.
3 Big units can be located in the industrially underdeveloped or undeveloped areas so as to aid spread of industrialization. This will also spur establishment of small & cottage industries in such new areas. The policy should provide incentives to offset the disadvantage of moving in such areas.
4 To the extent feasible large units shall be located near the source of raw material e.g. a power station near the coal mine, textile unit in cotton producing area
5 Fertile land shall not be used for setting up of industrial units
6 After studying the presently operating industrial clusters like Ludhiana, Tirupur etc, new clusters can be planned to be located at appropriate locations.
7 Pollution of any kind & particularly of large water tanks & rivers shall be avoided while locating polluting industries, if any.
8 Hazardous industries should not be located in & around populated areas. Non-disclosure of hazardous nature of products shall be severely punished.

1.9 Land use, acquisition, R&R policy
There have been much debate and agitations against the present policy of government of acquiring large tracts of land and allocating to industry without adequate regard to the interests of dispossessed as well as other dependents. Hence state government must formulate a comprehensive policy covering use of land in the state, acquisition guidelines for various uses and proper rehabilitation of the project affected persons including land holders and those depending on existing arrangement for their earnings and survival. (see suggestions for this mentioned in part III)

1.10 Ownership of industry
1 As far as possible, the industry shall be owned by all those who are regularly working in it in some capacity.
2 The employers must be encouraged to give some ownership of the enterprise to the employees.
3 Apart from ownership, the employees must be given appropriate representation in the management of the company starting from the board to the shop level committee. To make participative management more effective, the employee representatives must be trained, empowered & involved with open mind. They shall also be held accountable for results.
4 Cooperative enterprises, since they bring in democratic spirit, deserve encouragement & some statutory concessions but not subsidies or government contributions. Among the cooperatives those whose members themselves work regularly for the enterprise, shall be preferred.
5 Among the big enterprises 100% owned enterprises by foreigners or small group of persons shall be taxed at highest with some concessions for widespread ownership of equity capital.
6 Experiments like labourization, trusteeship, institutional ownership, independent professional supervisory board shall be encouraged. Proper legal framework & recognition needs to be provided by studying successfully operating models.
7 National enterprises shall normally be owned by nationals. Foreign ownership shall be discouraged.
8 Interlocking ownership & common directorship shall be discouraged to prevent misuse of SSI concessions
9 Where appropriate, municipalities shall be allowed to set up an enterprise related to city administration e.g. waste conversion to manure.
10 Shifting of industrial units to take undue advantage of regional subsidies / concessions should be punished.

1.11 Encouraging Entrepreneurship
1 Entrepreneur is the starting point for a private initiative & needs to be encouraged by various means to start a viable enterprise as per the perspective plan for the area.
2 Entrepreneurship is a judicious combination of the right attitude, dedicated application & variety of skills. This is scarce. Hence not only existing entrepreneurs deserve encouragement but serious steps have to be taken to develop an entrepreneurial spirit among the promising youth. This includes creation of an encouraging atmosphere to be an entrepreneur in industrial training institutes, technical schools & engineering / other technological colleges.
3 Enough attention has to be given to develop professional approach among budding entrepreneurs right in the training school & college. This aspect needs to be stressed at every level even thereafter.

1.12 Starting an Industry
1 There should be no hassles to start an industry particularly cottage, tiny or small scale except that the habitat should not be presented with problems.
2 No licence shall be required for these categories but government or regulatory authority shall have right to refuse registration for specified reasons like national security, criminal activity or violation of laws. Anybody starting an industry should apply for a registration in a specified format & the same shall be automatically deemed to have been granted. All transactions of the industrial unit must quote the registration number auto-generated while applying.
3 The entrepreneur wishing to start an industrial unit must have an appropriate training in that trade before starting the unit. This is essential to ensure better success rate & quality as well technical innovation. Higher technical qualification & practical experience will entitle the entrepreneur to higher initial concessions. For family-based industries or artisans, working in the family unit can constitute the training for eligibility.

1.13 Sick Industries
1 Procedure to identify sick industry & to get indications that it is going to be sick, is already in place.
2 The lending banks must take some proactive steps to analyze working of sick-to-be units along with a professional agency. This will put that unit on alert & also it may be possible that genuine help becomes available in time & prevents sickness.
3 Those industries, which are obviously sick, need not be artificially kept alive, as this is counterproductive.
4 New legal methods need to be put in place to utilize assets of sick industries for productive purposes pending final dissolution or takeover or sale. Such arrangement shall be without prejudice to the rights of various parties. If this is not done, such assets are underutilized, get progressively deteriorated or totally destroyed. Such national loss must be prevented or at least minimized.
5 Where industry has turned sick due to the willful default on the part of managing shareholders, their names shall be given wide publicity by lenders so that a pressure is built upon them for payment & others dealing with them are alerted

1.14 Closure of Industry
1 There is hardly any point in keeping a terminally sick unit artificially alive. This must be allowed to be closed temporarily or finally.
2 To explore possibilities of running the unit by another management or with alternative arrangement, three months’ notice shall be given by the closing unit to the government, recognized union in the unit, specified chambers of industry & nationally recognized unions. This will apply for medium & large-scale units. Such experiments will have to be closely monitored.
3 Where the employees want to run the industry themselves, they shall be given priority over others subject to viability.
4 A tripartite committee should be formed to recommend guidelines & the procedure to be followed for revival of industry where closure notice is given.
5 In no case the owners shall be forced to run the industrial unit against their wishes but the disposal shall be as per the guidelines.

1.15 Role of Government
1 Prepare indicative plans for next 1 year as well as 5 years & 20 years
2 To monitor industry economy, publish data regularly & encourage public debate on
- deviations from plans
- possible corrective actions
- unforeseen circumstances & suggestions for response by various agencies Central & State Govts, industry bodies & various sectors.
3 Plan & provide for infrastructure & particularly in rural areas
4 Explore identify, select & initiate R & D efforts to derive maximum benefit out of advances in science & technology.
5 Organize institutional structure for seed capital to
- first generation skilled entrepreneurs
- priority demonstrative projects for infrastructure, employment, novel ideas etc.
6 Regulation of economic activity in the desired channels
7 Encourage creative agencies & experiments. Also weed out destructive tendencies.
8 Even in the changed situation, promotional role of government continues & it must be discharged in an unobtrusive facilitator’s mode. Some new initiatives may also be necessary.
9 Monitoring international scene & apprising local industries of emerging opportunities & threats.
10 Education & training to suit changing requirements will also continue to demand governmental initiative & action.
11 There has to be an active interface between the industry and the academic institutions. This will solve lacunae in having relevant syllabus, proper orientation of students towards the industry etc. Government should initiate and encourage this.
12 Marketing data tehsil wise or district wise shall be collected and made available on website and through local radio.
13 Government may not intervene every now & then & everywhere but it surely can give guidance periodically to the industrial sector which shall not be binding or enforceable. This is essential to counter runaway tendencies due to free market operation. A non-interfering governmental monitoring agency can be set up.

1.16 Licensing
1 Licensing shall be abolished for cottage, tiny and small-scale industries. And also for most of the items except explosives, hazardous substances, defence items etc. This may be retained for foreign enterprises.
2 Registration of every unit undertaking manufacturing activity will be compulsory for monitoring & regulation. Registration shall be automatic.
3 Government shall however retain powers to introduce controls when situation goes out of hand or under extraordinary circumstances.

1.17 Foreign Enterprise
1 Foreign enterprises, if at all they are to be allowed, must be on the test of national interests & their coming, operation & going shall be at the sole discretion of Bharatiya government.
2 Their operation must conform to national interests
3 No extra concession should be extended to foreigners. Reasonable restrictions should apply to foreign enterprises.
4 No government job should be offered to foreigners without first offering to Bharatiya companies. Even if a job has to be offered to a foreign enterprise e.g. due to some unique technology etc., it should be done through a Bharatiya enterprise which in turn can pick up the necessary expertise during this job execution.
5 Utilisation of foreign capital should be in the manner most advantageous to the country e.g. where they have a reach in foreign markets, they can operate 100% EOU

1.18 Public Sector
1 Normally government should avoid carrying out business or establish a manufacturing unit. This is better left to the initiative of the citizens.
2 The case of existence of public sector must be decided upon realistically. It is not an end itself but useful means to fulfill industrial and economic policy aims & march towards achieving developmental goals.
3 Under the following circumstances, a public sector unit can be established
1.For a security related aspect
2.As a public utility which needs to work to promote development & not necessarily on commercial considerations.
3.As one of the many units among a particular sector supplying an essential goods or services e.g. power, water, essential drug, airlines, railways.
4.As a proving unit for frontier technology
4 The following special considerations may also call for a public sector unit
1.Establishing a unit requiring a large investment normally not forthcoming from local private sector.
2.A unit on experimental basis in a very new area where returns cannot be foreseen in the immediate future
3.A unit in a remote area as a pioneer to promote industrial activity.
4.A training unit for tribal areas
However, in case of these units, they should be handed over to the local initiative at the earliest.
5 The political leadership has so far failed to stop day-to-day interference in the working of public sector units in spite of promising to do so. The assets & facilities of public sector units often get used for political ends. This must be stopped & full autonomy given to PSUs. Then there can be a substantial improvement in the performance of PSUs. Even in many advanced countries of the world PSUs are performing better than their counterparts in the private sector.
6 Sick PSUs should be closed down to save on public money.

1.19 Agro-industries
1 First preference for type of industry shall normally be for those based on agricultural raw materials since they have the following additional advantages
1.1 based on locally available raw material which is also renewable & hence enables sustainable development.
1.2 can be in small sector & located in rural areas enabling widespread entrepreneurship
1.3 usually not polluting.
1.4 location in rural areas also dampens urbanization.
1.5 further advantages can be decentralized manufacture, nearness to source of raw materials, reduction in waste of agricultural produce, possibility of local market or in a nearby town or village, agriculturist getting a better price, employment & purchasing power increase in the rural areas.
2 For agro-industries to come up near the farms, available appropriate technology has to be recorded & made freely available to rural entrepreneurs. This has to be backed by extensive massive promotional as well as training programmes.
3 Existing ITI & select engineering colleges can take lead for training, consultancy & extension service for agro industry.
4 Appropriate incentive system has to be put in place by governments with encouragement for village-level infrastructure built-up by the Gramasabha or a co-operative society open to all.
5 A technology mission on Use of Biomass for production of chemicals, oils, fuels, power & plastics needs to be instituted to derive advantages enumerated above.

1.20 Export-oriented Units
1 In spite various schemes for exports promotion & for assistance to exporting units, the real thrust on export front has not emerged when compared to the potential.
2 The NRI community can be persuaded to undertake nursing of exporting units in Bharat. This new initiative can yield handsome results.

1.20 Social Audit
1 Social audit for select public enterprises shall be arranged by government and its results should be published.
2 Private units shall be encouraged to publish such social audits for their enterprises.
3 The social audit, inter alia, should include
3.1 Use of renewable & non-renewable resources
3.2 Conservation & earning of foreign exchange (as long as this item is relevant)
3.3 Employment generated (productive & gainful)
3.4 Inculcation of values among the staff & the students in the surrounding are
3.5 Literacy in the surrounding area
3.6 Primary health services in the area
3.7 Arousal of Janachetana for self-effort in local development
3.8 Promotion of cultural values like caring, truthfulness, integral approach, morally correct & elevating advertisements etc.
3.9 Balancing the interests of all stakeholders including consumers, suppliers, distributors, dealers, employees etc.
4 The social audit shall be compulsory for units with over Rs 500 crores annual turnover.

REFERENCES
(Ref 1) – National Development Policy formulated by Ekatma Vichar Kendra
(Ref 2) – National Economic Policy formulated by Ekatma Vichar Kendra
(Ref 3) – Dharma is a code of conduct for sustenance of society and advancement of individuals materially, morally and spiritually in a harmonious manner. Constitution is a dharma but dharma goes further and gives guidance on moral duties etc. The yamas (ahimsa, satya, asteya, brahmacharya, aparigriha) and niyamas (shouch, santosh, tapas, swadhyaya, ishwarpranidhana) constitute important expectations from everybody for social and individual dharana (sustenance).

PART I I - MAHARASHTRA INDUSTRIAL POLICY: SPECIFIC SUGGESTIONS

2.1 Social framework
1 Government action of promoting industry should not promote urbanization with attendant problems like land shortage and price increase, slums, deterioration of civic amenities, increase in social problems and crime etc.
2 Old artisan class should be supported to become an industry owning class by way of technological, financial and mentoring support. A task force for this should be established to recommend specific actions.
3 Activities like Dalit Chamber of Commerce must be welcomed and supported with complimentary help like entrepreneurship development programme for aspiring dalit entrepreneurs.
4 For small and medium enterprises, cooperative form should be encouraged by giving specific incentives. Also small cooperative industrial estates should be preferred. Similar is the case for cooperative warehouses and small ship repairing enterprises.

2.2 Ecological framework
1 No activity at site should be permitted before environment imact assessment report is prepared, scrutinized and approved authorities.
2 For every project, the government should insist on realistic cost-benefit analysis which should take into account environmental costs
3 Studies should be conducted through universities to assess carrying capacity of environment and recommend ways and means to increase this capacity in select districts.
4 Bio Fuel : As a policy state will encourage use of Bio fuels – ethanol and Biodiesel for mass transportation and stationary engines applications
4.1 Ethanol produced by sugar mills shall be purchased at rates announced by Central Govt time to time for blending it with Diesel (commercial—mineral) at the Depot level of state road transport buses and city transport buses to the extent of 5% to 10% .This will reduce the fuel expenses as well as emissions gases will have less percentage of toxic gases.
4.2 The private efforts of producing Bio Diesel shall be encouraged .The subsidy shall be given for plantation of non edible oil seeds, oil extraction ,filtration,deeterification ,processing machinery etc.No tax will be levied being an agro product. The Biodiesel shall be mixed with Diesel to extent of 20%.
4.3 For the development of this activity a Biofuel development task force/board shall be formed and detailed policy guideline will be prepared.

2.3 Institutional framework
1 It is necessary to increase efficiency of the institutions related with Industry promotion in the state. Clear and comprehensive details and speedy approvals are still a distant dream.

2 Government should collect and publish data on website giving the value of industrial goods brought in from other districts of the state, other states of Bharat and also goods sent out to the other districts of the state and other states of Bharat as well as exported to other countries. This data should be published districtwise. This will enable to gauge industrial progress so far and help planning for future.
3 A tripartite committee comprising of Minister of Industry, industry associations and labour organizations should be formed. Its meetings shall be scrupulously held every quarter and minutes should be put on website.

2.4 Industry sectors in focus for growth
The following sectors hold a promise for future and hence must be focused upon for action, encouragement and monitoring:

1 Infrastructure : Roads, Water supply, Environmentally safe disposal of effluents(solid liquid) , Power, Telecommunication, Sea/air ports
2 Manufacturing :
2.1 Agro/food processing and fruit processing
2.2 Automobiles and auto components
2.3 Electronics(Industrial & domestic)
2.4 I.T. Hardware & peripherals
2.5 Pharma – Ayurvedic ,allopathic etc
2.6 Textiles & garments
2.7 Mining & mineral processing
2.8 Cement and steel/metals

3 Services :
3.1 I.T. software, IT enabling services
3.2 Biotechnology. Proper regulation has to be ensured by state without totally depending on central initiatives.
3.3 Nano technology. Proper regulation has to be ensured by state without totally depending on central initiatives.
3.4 Health services
3.5 Tourism & hospitality (see suggestions for tourism in part III)
3.6 Entertainment & media (see suggestion under incentives below)
3.7 Financial Services
3.8 Knowledge based services –Audit, Law, KPO

4 SSI Sector :
4.1 Manufacturing and processing local produce
4.2 Cluster development
4.3 Common facilities development for quality control, upgrading ,training
4.4 Preferential purchasing & reservation policy
4.5 Creating separate Norms/standards (e.g. K.V.I.C.)
4.6 Handicrafts & semi mechanized products
4.7 Development of ancillary units/clusters
4.8 Incentive/subsidy Norms

5 Renewable energy sources :
5.1 Power generation by wind energy ,solar PV, Bio mass, Co- Generation
5.2 Development of Bio-fuels,
5.2.1 bending of ethanol with Petrol and /or Diesel,
5.2.2 Cultivation of Non edible oil seeds
5.2.3 Extraction and processing of Bio- Diesel
5.3 Bio Gas development

2.5 Decentralization
1 Government should declare in the policy and also through budget that focus will be on decentralization of industrial sector and particularly on family based manufacture.
2 A standing “Committee on Family-based Manufacturing Structure” should be constituted for a 5-year tenure to work out promotional scheme for this idea.
3 Industries in rural and remote areas should get better incentives based on employment, value added and development of the adjoining area.
4 Growth Centres:
4.1 No growth centre should be planned near existing cities.
4.3 Small growth centres should be planned in rural areas.
4.4 Big growth centre should be planned on a barren land away from any existing city. Such a growth centre will have separate zone for accommodating SSI units and ancillary unit and/or allocation of land for Co-op industrial estate.

2.6 Infrastructure
1 Infrastructure is both a business opportunity for industry and also a facilitative requirement for general industrial growth.
2 Before upgrading the existing infrastructure, optimum utilization of the
existing infrastructure has to be ensured. Refrain from increasing the infrastructure above the sustainable level.
3 Some advance planning for infrastructure has to be done particularly in undeveloped and rural areas
4 Power position in the state has been dismal ever since Enron project was thrust upon MSEB by successive governments. Sadly solution for power relief is not in sight.
4.1 Since government has been unable to do much during the last 10 years a committee of power professionals and potential power producers should be constituted to advise and aid government.
4.2 Distributed power generation by non-conventional means should be encouraged for industrial estates in rural areas
4.3 Power generating unit should be located near the coal pitheads or near the load centre.
4.4 It shall be made mandatory to start co-generation for profit making sugar mills for captive use and surplus be given for state grid.

5 Ports:
Maharashtra has coastline of 720 kms with two major ports Mumbai, JNPT and many medium and minor ports as also fishing ports and private jetty’s dedicated for oil handling for refineries and coal handling for power projects. Three/four privately developed medium sized ports are coming up in the Konkan region in Raigad and Ratnagiri districts ,which will handle cargo (liquid & bulk) containers and oil & liquid cargo, as also perishable / refrigerated goods .All these ports shall have modern facilities for Bulk and container cargo handling ,tank farm, coal handling facility etc and warehouses and cold storages. All the major and minor ports shall have direct connectivity with road to national highways (4 lanes) and rail connectivity with Kokan Railways, Central Railway, as well as western railway for inward connectivity with the rest of the nation.
5.1 Port related activities : a separate Policy shall be designed by Maharashtra Maritime Board for shipbuilding ,ship repairs, dry and wet docks, ship breaking, supply services to shipping & fishing sector activities.
5.2 Developing shipyards involves heavy investment as such these projects shall be in PPP mode and treated as Mega projects with subsidies and tax concessions
5.3 Coastal cargo services shall be encouraged; the facilities for handling and transportation shall be developed.
5.4 The export of perishable cargo and refrigerated cargo shall be promoted to Middle East and nearby countries shall be promotes through these medium sized ports. The warehousing & handling facilities shall be developed through PPP.
5.5 Training ship, naval academy, institutions for Trade related Vocational courses shall be started for gearing up the local youths to take up jobs.

6 Roads :
5.6 All the state highways connecting Mumbai, Pune, Nasik, Aurangabad, Nagpur to nearby Industrial areas also shall be four lanes.
5.7 All the national and state highways shall have all the facilities for fueling vehicles repairing, rest rooms, restaurants etc. (there shall be no liquor shops? Bars on any of the highways to avoid accidents)
5.8 Warehousing facilities, transportation and logistical support facilities for loading/unloading etc. shall be available at all the industrial areas.
7 PURA
Provision of Urban facilities in Rural Areas was advocated by our former President Abdul Kalam. This is very essential to counter urbanization, promotion of industry & employment in rural areas, reducing rising income inequalities. A programme with definite goal posts must be formulated and impelemented.

2.7 Entrepreneurship
1 We still do not have proper institutions where up-to-date data & guidance from industry experts about starting & running an industry is available easily, cheerfully & at minimum cost. Present chain of Small Industry Service Institutes (SISI) & District Industry Centers (DIC) has not lived up to expectations. They need to be revamped to suit present circumstances & also supplemented by NGOs & private professional efforts.
2 The industry associations & senior industrialists need to start a scheme Udyog Saathi (Industry Mentor) to adopt budding entrepreneurs & guide them through initial crucial years. Such mentoring has always shown good results. Arrangements for providing technical training in processes must be made available by Govt. agencies as well as privately. Also marketing assistance needs to be made available.
3 Every government has accepted a need to reduce red tape & reduce ‘inspector raj’ but the problem remains. Government should appoint a private consultant to formulate a regulatory procedure for cottage, tiny & small scale industries. That is likely to be faster & may result into an acceptable piece of legislation.
4 Capital is one of the most difficult hurdles for a first generation entrepreneur. Several schemes do exist to encourage them but they need to be supplemented by Venture Capital Funds.
5 Small-scale entrepreneurs single-handedly deal with marketing, production, quality control, accounts, finance, technical innovation etc. They need a one-source guidance or help in one or more of these matters. A pilot project should be started by a development institution to provide these consultancy services (e.g. MITCON) & also private senior professionals can be encouraged to provide such comprehensive services.
6 Financial institutions & banks need to develop expertise, where necessary with the help of industry experts, to sniff early signals of sickness & take remedial steps including providing special technical, managerial & financial assistance to the affected entrepreneurs. This can prevent sickness in industry to some extent & will also reduce NPA. In case of failure to repay loan installments, the representative of the bank should be suitably involved in decision making in the unit with a veto power.

2.8 Employment
1 Employment is the main source of livelihood and self-fulfillment for most women and men. It is not difficult to recognize that gainful employment is the best development measure for a person.
2 Industries providing more employment (labour intensive) must be encouraged. (see suggestion under incentives below)

2.9 Training
1 Strengthening and upgrading technical competence of labour has to be done on continuing basis.
2 Upgrading of vocational institutions must be done through government or private efforts.
3 Government should encourage industry to set up training, retraining and advanced technology imparting institutes with due incentives near industrial establishments / clusters in cities and rural areas.
4 “Employability” of the prospective and existing employees has to be increased to take advantage of available opportunities. Sustainability aspect should receive due weightage in such trainings.

2.10 Balanced development
1 The employment in five top districts of the state is 51.55% of the total as per the economic census of 2005 - Mumbai 26.26 lakh (22.21%), Pune 11.31 lakh (9.57%), Thane 10.38 lakh (8.78%), Kolhapur 7.34 lakh (6.21%), Aurangabad 5.76 lakh (4.87%).
2 Hence the industrial promotion efforts of the state government must be directed to Vidarbha, Marathwada and Khandesh.

2.11 Incentives
1 A scheme should be designed to encourage employment by giving cash grants, tax concessions, public rewards etc. For this purpose an Employment Index has to be devised so that those who employ “more” and “less” could be identified to reward or penalize.
2 For sectors like media, entertainment etc. affecting social mind, an incentive scheme rewarding “good” and “penalizing” products must be designed. Since these sectors may oppose such scheme by government on the specious pleas of “unfettered freedom of expression”, a Social Responsibility Commission should be appointed to devise the scheme and provide advise in case of disputes.
3 Development of processes and technology as per needs of the local communities of the state is essential. An incentive scheme for recognition and rewarding of such appropriate process and technology development should be instituted.

2.12 Removing Business Impediments – Plugging Loopholes
1 Octroi Abolition: While all over India octroi has been more or less abolished but Maharashtra government sticks to it giving lame excuse of suitable alternative not available. But in Navi Mumbai octroi is abolished and the city is prospering. Where there is a will there is a way! The “progressive” Maharashtra politicians should do away with national waste by abolishing this out-of-date levy which generates huge amount of black money besides wastage of precious fuel and time of all concerned.
2 The government must tighten screws over a class of pseudo-entrepreneurs who only do paper work of starting a unit and pocket subsidies and never establish units.
3 A task force should be appointed to fulfill oft repeated promise of government to reduce “lnspector Raj”. Only one comprehensive law should be applicable to cottage and small industries and there should be only one return to be filed by them.

PART III - MAHARASHTRA INDUSTRIAL POLICY: SUGGESTIONS FOR LAND USE & TOURISM

A) Important elements in the Land use, acquisition, R&R policy
The first step in initiating the use of land for industrial projects is a careful understanding of the different contributions of land to human well-being and the complex nature of rights and entitlements in it.
1 Land Availability
1 We have as much as 162 million hectares of arable land nationally– over 54% of our landmass. China has only 13% of land as arable.
2 We do not cultivate 40 million hectares of our arable land.
3 Net sown area has not risen since ‘70s.

2 Consult grampanchayats
Institutional failure of democracy is apparent when we see that the land acquisitions should have been hotly debated in the gram panchayats and gramsabhas. Make their consent compulsory for land purchase by industrialists or acquisition by government. There should be a set procedure including debate and impartial evaluation if the refusal of grampanchayat is to be set aside.

3 Coopt the land loosers
It is essential to make the land losers also the beneficiaries of acquisition so that the land losers would not feel alienated but would welcome acquisition. It is necessary to evolve tailor-made schemes to suit particular acquisitions, so that they will be smooth, speedy, litigation-free and beneficial to all concerned. Proper planning, adequate counselling, and timely mediation with different groups of land losers should be resorted to.

4 government should refrain from acquiring
1 fertile land
2 land under well or canal irrigation
3 land near urban agglomeration
4 land from coastal areas as far as possible
5 land from ecologically sensitive area

5 priority for land acquisition should be
1 barren land with minimum rainfall
2 land turned infertile due to various reasons
3 land away from urban agglomeration
4 land which cannot be profitably used for agriculture
5 land with low agricultural output and productivity

6 for important projects like power plant etc. land bank should be created by the state government, it should be developed, environment clearance obtained and then auctioned for the approved type of project. This will avoid hassles for the industrialists and government will make money which can be ploughed back for more land development.

7 Industry can be allowed to directly purchase land from land owners subject to certain limits and avoiding prohibited / areas and also giving due consideration to the ecological sensitivities.

8 The tendency of industry to possess excessive land must be curbed allowing for due expansion at that site. Excess land should be transferred back to the government even when the entity is sold out.

9 Rehabilation of project affected persons (PAPs)
9.1 The PAPs should be provided with
- compensation at market rate or opportunity cost, whichever is higher, for the land acquired
- employment opportunity for the person or his dependent. One-person-per-family principle
- displaced persons to be trained in ITI or such other institution
- Deposits in Bank, the interest of which accrues to the displaced persons on a regular basis or annuities for 35 years
- some equity in the project
- some land or unit near project after development by the project authorities for establishing profitable enterprise
9.2 Acquired area residents shall be provided with
- excellent urban facilities including special focus on education and health
- Primary health centers in the surrounding areas
- Potable water scheme
- Road network improvement in the area
- Skill training facilities in the area

10 There should be a limit on acquisition of land in a given district / taluqa

11 Review this policy after every 25 years or earlier if warranted by a peculiar situation.

B) Important elements in Tourism policy
1 In Maharashtra the no. of tourists in 2009 were 2.37 (domestic) and 19.99 (foreign) lakhs. Domestic tourism is likely to grow at 20% p.a.

2 Given the low level of exploitation of India’s tourism potential, there is scope for tourism encouragement.

3 Cost of employment creation is low in the tourism sector, and hence the opportunities in this sector must be utilized to better the lot of people who can use this opportunity.

4 Objectives of tourism development
4.1 to foster understanding between people, promote national integration among Bharatiyas
4.2 to preserve, enrich and promote Bharat’s cultural heritage.
4.3 to create employment opportunities and bring about socio-economic benefits to the community

5 The safety and security of tourists are of primary importance both from the point of view of tourism development and the national pride.

6 Government must introduce regulatory measures to ensure social, cultural and environmental sustainability and also to avoid possible adverse effects such as cultural pollution and degradation of environment. The principle of sustainable development stipulates that the level of development does not exceed the carrying capacity of the area.

7 It should be the policy of government to encourage people’s participation in tourism development including Panchayati Raj institutions, local bodies, Co-operatives, non-governmental organisations and enterprising local youth. It has to be ensured that the local community is fully involved and the benefits of tourism accrue to them.

8 Focused attention should be given for the integrated development of identified centres with well directed public participation.

9 Medical tourism is growing exponentially in Bharat due to state-of-art medical facilities, expert doctors and low cost of treatment. Proper review of this and planned development to utilize this opportunity are necessary.

10 Adventure tourism is also growing. This should be regulated from safety and environmental point of view.
11 Important pilgrimage centres of Vaidikas, Jains and Buddhists should be provided with facilities

11 Socially corrupting tourism like casinos, indecent exposure on beaches, rave parties etc should be banned forthwith.
12 Government should undertake research, prepare master plans, and facilitate formulation of of promotional and facilities planning strategies.

संपूर्ण रोजगार परिचर्चा_ १९ ऑक्टोबर २०१०

चर्चेमध्ये उपस्थित विविध बिंदू --
रोजगार हा विषय आर्थिक नियोजनाच्या केंद्रस्थानी नाही.
ह्यासंदर्भात श्री अमित भादुरी यांच्या "प्रतिष्ठापूर्ण विकास" ह्या पुस्तकाचा विशेष उल्लेख झाला.
रोजगार, बेरोजगारी, ह्या शब्दांच्या नेमक्या व्याख्या नाहीत.
तसेच अशा कोणत्याही व्याख्येच्या मर्यादा राहणारच.
वर्तमान अर्थव्यवस्थेच्या संदर्भ चौकटीत राहून रोजगाराच्या समस्येला उत्तर मिळणार नाही.
बालमजूरी बद्दल संपूर्ण निषेधाची भुमिका न घेता बालक शिक्षणापासून वंचित राहणार नाही हे पाहिले पाहिजे.
पाश्च्यात्य अर्थचिंतनात मात्र समृद्धी हीच महत्त्वपूर्ण मानली गेली आहे तर भारतीय चिंतनात समृद्धीला मर्यादा मानली गेली आहे.
जीवनानंद मिळवण्यात बाधा निर्माण होणार नाही ही समृद्धीची मर्यादा मानली गेली आहे.
सेवा क्षेत्रात प्रभावी back up system च्या front end ला असलेला रोजगार अकुशल/ अल्प-कुशल व्यक्तीला देखील मिळू शकतॊ.
समृद्धीची मर्यादा निश्चीत केली की त्यावर आधारीत उत्पादनाचे मॉडेल ठरेल.
रोजगार वाढवण्यासाठी skill education ची गरज आहे.
शेतीतील संधी वाढवण्यासाठी cash crop चे प्रमाण तसेच mechanisation ची पातळी ठरवावी लागेल.
प्रस्तावित national employmentavailability program वरही चर्चा झाली

Sampoorna Rojgar : Samsya and way out

Sampoorna Rojgar : Samsya and way out
By Anil Javalekar
Introduction
Rojgar samsya is one among others which can be said as man made. The economic model of selfish and one sided materialistic approach leading to accumulation of property and maximisation of profit is the base for destroying the society’s basic fabrics, showing disregard for environment & natural resources and concentration of sources, capital or otherwise, resulting ultimately in exploitation of every possible but un renewable source, inequality, unemployment and poverty. While studying the Sampoorna Rojgar, we may have to remember this because whatever solution we provide or search for should be comprehensive and long lasting .The solution has to come from the self reliant economic system evolved and not from factored programmes or plans, government sponsored or otherwise, including the commercialised development of agriculture, industries or services as is presently being done.
1. Present Unemployment Problem
i. I will not go in statistics as the unemployment problem is visible in every family and every village/town or city. The Planning commission and so many national surveys are doing the job of identifying the unemployed and measuring the number of unemployed though they are struggling to define the unemployment or quantifying it. In simple way we can say that the persons seeking jobs are not getting it. It is agreed by experts and planning commission that the number of persons entering the job market is more than the number of jobs generated.
ii. The unemployment problem is considered as problem but the solution is being searched either through the factored programmes, sponsored or otherwise, or through trickle down economic growth. This way ‘Sampoorna Rojgar’ or full employment has been given a residual treatment and was considered as a byproduct of economic growth and never treated as goal leading the society towards integral humanism.
iii. What has happened through the years or decades is that the employment generation was not enough. The latest NSS results show that the total employment created, according to the usual status, between 2005 and 2008 was only 2.4 million, which was just 0.8 million per year or a mere fraction of the 12 million created per year between 1999-2000 and 2004-05. The total number of workers increased from 457.9 million in 2004-05 to 460.2 million in 2007-08, a growth rate of just 0.17% per year as against the 2.85% per year growth rate achieved between 1999-2000 and 2004-05. This is the lowest rate of em¬ployment generation in the last three decades, even lower than the previous spell of jobless growth of 1993-2000 when employ¬ment increased by less than 1% per year1
iv. The unemployment problem is aggravating with the entry of nuclear family where each member is seeking job. This is truer when we see that more women are entering the job market. Thus making the family as unit for employment is becoming difficult.
v. The current education system created mainly to cater needs of British Empire is still doing the same job and not helping persons to fetch the job in the present global markets as the requirement and available skill are not matching. It is said that when there were about 2945 courses were taught in the world; only 171 courses were taught in India. This has complicated the unemployment issue.
vi. Many consistent efforts were made to develop new entrepreneurship through various training programmes in the hope that youth will take self employment but in vain. Only traditional families are entering successfully in the entrepreneurship or self employment. Therefore policies to promote self employment are not helping to solve the unemployment problem
vii. The efforts through employment exchanges to help unemployed and the industries to match each other requirements have totally failed. The placement agencies in private sector are catering to the needs of higher strata of society as they charge fees and are of limited use or no use for rural unemployed youth.
viii. The policies of recent liberalisation in the name of globalisation closed the doors for Indian youth for self employment and entrepreneurship because of the entry of corporate and big brothers. The corporate entry was not limited to the industrial sector but in agriculture and allied activities as well as small service sector.
ix. The banking and financial sector after nationalisation was initially providing concessional finance to small and village home based industrial or service sector. But this has changed after liberalisation. Now big brothers and corporate get cheap finance compared to small manor unemployed.
x. The government sponsored schemes and programmes meant for unemployed either to get direct employment under NREGS or self employment under schemes like SGSY or SJSRY, are lost in corruption and cannot be considered as reliable solution to the unemployment. Moreover, self employment schemes are subsidy schemes linked with bank loan.
2. Present approach to solve the unemployment problem
One of the objects of the various Indian Plans was to increase employment opportunities and to raise the standard of living of the masses. Various measures were taken in this regard and programmes were implemented accordingly, last being NREGS. Among the measures intended to tackle the problem of unemployment were as under:
i. Foremost consideration was given to the rural sector on account of the magnitude and seriousness of the problem there. Moreover, offer of better employment opportunities in the rural sector was considered to have a salutary effect on the unemployment situation in the urban sector.
ii. It was thought that the large-scale unemployment and under-employment in rural areas can be tackled only by providing ‘the village community with other avenues of employment in addition to agriculture’.
iii. In the beginning, the policy was to expand the Public sector in every sphere of economy so as to help generate employment.
iv. The revival and development of rural industries have found a central place in the rural development programmes.
v. Equal importance was given for the revival of old handicrafts.
vi. The undertaking of public work programmes in slack agricultural seasons was an important aspect in reducing the pressure on employment in rural areas.
vii. Banks were nationalized so that easy and concessional finance is made available to rural people and rural areas
viii. Government and various agencies including banks initiated various programmes for skill development so as to help self employment and established training institutions for the purpose.
ix. Efforts were made to increase the productivity of agriculture so that it help generate income and employment in rural areas.
x. Government initiated various sponsored programmes like SGSY for rural aras and SJSRY in urban areas to generate self employment.
3. The leading sectors and employment generation
i. The agriculture and allied activities have been traditionally providing employment to most of rural people. In fact this was ‘Jeevan Nirvah sadhan’ for humans for major period of life after settlement and this is still true for majority of Indians. From the point view of Ekatma Manav Darshan, this kind of employment is desirable because this is a self employment; guarantee the jeevan Nirvah Sadhan and Jeevan Nirvah simultaneously apart from contributing towards satisfaction of society needs. However, the property rights, commercialization and mechanisation apart from land acquisition for industry and urbanization have changed the scenario. The dependability on agriculture has not changed much as the agriculture sector still provides employment for more than 50% workers though its contribution to GDP has come down to 18%.The sector is considered as surplus with labour and cannot be expected to absorb the rising unemployment in rural areas.
ii. The industrial sector has gained importance due to its ability to provide direct guaranteed employment with periodical salary component. It had also potentials for generating more employment opportunities due to growth of subsidiary sectors-industries/services. In India, the employment was generated substantially after independence due to public sector and small scale sector. However, with the recent changes in the policy towards liberalization in the name of globalization, the employment generation in organized sector, particularly public sector has stopped and the existence of SSI sector is at stake due to withdrawal of support. One of the reasons for high level of unemployment is these policy changes.
iii. After agriculture, the service sector is major sector generating opportunities for direct and indirect employment. This sector contributes 55% of GDP and share more than 35% of employment. The services sector is currently the fastest growing sector of the economy, and employment growth in the sector has remained more than 5% per annum since the 1990s as compared with the aggregate employment growth at less than 2%. This sector has the unique opportunity to grow due to its labour cost advantage, reflecting one of the lowest salary and wage levels in the world coupled with a rising share of working age population.
4. How the problem should be viewed
i. The problem of Sampoorna Rojgar must be treated as journey from Jeevan Nirvah to Jeevananand. There should not be any need to create Rojgar opportunities as is presently done, but the economic system should have inbuilt arrangement for assured work and Nirvah sadhan. In the present system of development, both employer and unemployed have to search each other resulting mismatch most of the time. This can be said as main reason for frustration among the youth. If we develop a system, where individual is assured, by the time she approaches the completion of her tender age say 15-16 years, the best suitable opportunity she is capable of, we may probably start our journey towards solving the problem of sampoorna Rojgar.
ii. Indian philosophy or ‘Hindu Arthshastra’, if you call it, never described rojgar concept the way it is described today. In our thinking ‘Rojgar’ is not simply getting employed somewhere and earn some money in return, but it is linked to ‘Jeevan Nirvah’ and ‘Anandi Jeevan’-the concepts goes far beyond employment and earning. The system prescribed was able to first assure ‘Jeevan Nirvah’ to each one and in return each one was able to contribute towards the fulfilment of some needs of society and secondly, directing each one towards ‘Anandi Jeevan’ under the guidance of ‘Dharma’. Therefore, while approaching the problem of ‘Sampoorna Rojgar’, we should remember that each one of us, including the unemployed, is a part of society.
iii. I will not go in to the details of how the Indian ancient system was evolved but would like to highlight some of the thinking and components. First and foremost important thing was that the economic system was not controlled by political system but was inbuilt in the social fabrics guided by integrated human values and had arrangement for fulfilment of basic minimum needs of all the members. It had it needs identified and had made arrangement for meeting the same by way of allotting the work to each family. The family in turn was assured the returns in proportionate to their labour. This way there was no question of berojgar. The education, particularly the skill development, was the responsibility of the family and it was through the family efforts. The political system was to maintain the system. The Indian economic system developed or expanded in the various areas/fields relating to products and trade or services but these basic fabrics remained same.
iv. I will not name it as varnavyvastha or the balutedari etc or propagate it as it will be immediately discarded and I will be branded. We should be open to take what is good and help us to find long lasting solutions for today’s problems. Here I intend to propagate the principle behind the relationship between Demand and supply components of those system-Needs of society and involvement of family as unit to meet the same.
v. In all, the materialistic approach, where everything and anything produced is counted for growth has to be discarded. This materialistic system has no governing authority except the self satisfying interests and profit. The production, distribution and consumption are governed by only these instincts and there is no relevance to social life. In this system everything is available to everybody if the required price is paid irrespective of age sex, place etc. and this is the reason why men women and children are treated as commodities. They are simply placed or displaced according to their utility value to profit. This only leads to employing best and throwing out the worst making the dream of Sampoorna Rojgar unaccomplished. The concepts of growth or development thus need some guiding principles and values of the integral humanism.
5. Some way out
i. First and foremost important thing is that the issue of Sampoorna Rojgar is crucial one from the point of view of individuals-Men and women and therefore it should get independent and central treatment in the strategy of development and not of residual outcome of economic growth.
ii. The employment policy should be comprehensive enough to accommodate all types of individuals, men-women, the educated-uneducated, skilled –unskilled, young-old etc and create an economy so as to give them a minimum decent work and work culture.
iii. In India, family is still important and it should be given importance along with scope for Self employment. All policies should help the home based economic activities as base of economic model. It should be seen that each family is generating employment on its own at home and contributing to the needs of society. For this, decentralized economic model leading to self reliant family and rural life is must. All policies promoting the production of consumption goods should be restricted to this home based sector. For this purpose a reference may be made to the wage goods model suggested by Dr P R Brahmananda, in 50s.
iv. The education system should be completely redesigned so that the young ones are prepared for the skills required for the home grown industries and entrepreneurship. The specialized and higher education system should be separated from the basic skill development. The basic education in regard to the cultural values and building general capabilities and abilities required for a good citizen or member of society should be designed in such a way that it gets completed by the age 10-12 years and growing of child accordingly should be responsibility of the family. After this a young child of 12- years should be groomed for skills required as per the aptitude and attitude so as to increase their employability. Specialisation should be limited for those who are interested and with bend of mind.
v. The property rights and profit maximization should be revisited as these concepts are destroying the society’s basic fabrics and allowing for disregard for environment and natural resources apart from concentration of sources and exploitation leading to inequality, unemployment and poverty.
vi. There is a need to declare a ‘National Work Availability Programme/Scheme’, for all those capable and willing to work and should become a major central thrust in national development. Various Governments sponsored programmes/schemes need to be combined in one to provide guaranteed work for every willing person below 50yrs of age. This will help boost home sector
a. The scheme should be in rural and urban areas and should be designed in such a way that it should address all types of unemployment.-educated-uneducated, Skilled-unskilled, Young-old, Men-Women, etc.
b. The schemes should be mix up of direct employment as well as self employment.
c. Direct employment schemes should concentrate on building of productive assets with guaranteed wages including food for work. Self employment schemes should guarantee the support for income generation with survival kit with minimum needs fulfilment including food.
d. Self employment schemes should be environment friendly and can be taken up in agro-management e.g., forestry, fruit cultivation, reclaiming of wasteland etc as well as in industrial and service sector.
e. The schemes should be through budget provision and direct instead of through subsidy linked with bank loans.
f. The schemes should be implemented through NGOs/SHGs and politicians and bureaucrats should have no role.
g. The industrial and service sector should be participant in the self employment schemes and their commitments particularly with reference to skill development, marketing support, technical knowhow etc. should be obligatory in nature.
h. The above NAWP should initially be on pilot basis and slowly be extended. All preparatory work on schemes to be taken up (e.g. survey, estimate, drawings, techniques etc.) and must be ready in advance.
vii. The employment exchanges should be revamped so as to become to employment information centres and placement coordination centres and it should further include collection of data on the skill requirements, both present and future, in industry and services. NGO sector also should be allowed to establish such centres for rural youth and specific grants may be provided for the purpose.
viii. A Standing Conference on Employment should be constituted and should include representatives of agriculturists, academia and consumers etc. The conference should deliberate on ways and means of achieving Sampoorna Rojgar as well as improving the quality of Rojgar.
ix. The child labour should not be condemned if they are working with their families. Instead these should be treated as employment grooming centers and should be valued/ assisted accordingly.
x. Efforts may be made to devise “Employment Index” to judge employment contribution of a unit or an industry or a sector to administer reward/ penalty. Government must publish a data for each type of industry giving indicative norms of desired generation of employment per unit of capital (a scarce resource) used. The industrial units should be allowed to choose their combination of labor & capital but any extra use of capital compared to the norm (varying with time), must attract “Employment Shortfall Tax”. This tax amount must go to a fund to be exclusively used for National Work Availability Scheme.


-----

References
1. Economic and Political Weekly EDITORIALS - 25.09.10
2. Vikalp vedh
3. The Planning Commission Approach -11th Plan
4. Sampoorna Rojgar backgrounder
5. Seminar on sampoorna Rijgar held on 02.10.10 and its Discussions

परिचर्चा सारांश :- २७ ऑगस्ट २०१०

• श्री सतीश मराठे -- भारत हा नेहमी औद्योगिक देश होता पण परकीय़ आक्रमणाच्या काळात व्यापार व उद्योग नष्ट झाले त्यामुळे शेतीवरील दबाव वाढला.आज पुन्हा urbanisation होत आहे हे त्या ऎतहासिक काळात घडलेल्या प्रक्रियेचे correction मानावे का ?त्यामुळे city centre चा विकास योजनाबद्ध करावा का ? बंगलोर मध्ये आंध्र प्रदेशातील लोक येतात कालकत्त्यात ओरिसा -बांग्लादेश मधील लोक येतात .महाराष्ट्रात सिंचन मर्यादित आहे .त्यामुळे विकसित होत असलेल्या ५००० urban coglemaration चा विचार केला पाहिजे.urbaisation plan करण्याची गरज आहे.
• श्री दि वि अलाटे -- मुंबईत ५०% लोकसंख्या झोपडपटटीत राहते.नवी मुंबई वसवून वाढत्या लोकसंख्येच्या राहण्याचा प्रश्न सुटला नाही पुणे येथे ही अशीच वाढ होत गेली आहे तिथे त्यामुळे वाह्तुकीचा प्रश्न जटील झालेला दिसतो.कारण vision चा अभाव होय. मुंबईला वीज देण्यासाठी बाहेर लोडशेडींग करतो.सेवा क्षेत्र व SEZ हे विकेंद्रित करता येतील.शेती कडे महाराष्ट्रात दुर्लक्ष झाले आहे. गुजरात मध्ये शेतकर्याला मातीचा पोत बघून पीक ठरवण्याबद्दल सल्ला दिला जातॊ त्यासाठी soil card दिली आहेत.crop pattern बदलण्याची गरज आहे.
• श्री रविंद्र महाजन -- शहराकडे ओढा स्वाभाविक आहे. पण त्यामुळे शहरातील सेवांवर ताण निर्माण झाला आहे.त्यासाठी शहरातील सेवा ग्रामिण क्षेत्राला पुरवण्याची माजी राष्ट्रपती अब्दूल कलाम यांनी सुचवलेली PURA योजना उपयुक्त ठरेल.Agro Industry तसेच विकेंद्रीत Industrialisation करावे लागेल. आजपर्यंत केलेले उपाय पुरेसे न ठरल्याने काही drastic उपाय योजावे लागतील.उदा. खेड्यात राहण्यासाठी विशेष भत्ता देणे,factory system मुळे शहरे वाढली.IT मुळे household industry वाढवणे शक्य आहे.production सुद्ध decentralise होऊ शकते.
• National Policy ON Urbanisation ची गरज आहे.त्यासाठी घटनेत असलेल्या provisions चा वापर करणे. केवळ एखादे शहर अथवा राज्य ही समस्या सोडवू शकणार नाही.per capita वीज वापर जास्त म्हणजे विकास असे निकष अयोग्य आहेत. तसेच Urbanisation म्हणजे विकास हा निकष अयोग्य आहे.
• श्री सतीश मराठे -- everything done by Govern ment हा approach असल्याने private initiative ला प्रोत्साहन मिळत नाही.गत १० वर्षातील ह्या दॄष्टीमुळे उर्जा क्षेत्रात खाजगी क्षेत्राचा सहभाग वाढला आहे.त्यामुळे नफ़ेखोरी देखील वाढली आहे.खाजगी क्षेत्र सरकारी योजनांना सहाय्यक होऊ शकते.
• श्री दि वि अलाटे -- पं नेहरुंनी खाजकीकरणाला विरोध केला.टाचणी बनवू शकत नव्हतॊ.technical manpower नव्हती.१९६० पर्यंत ही स्थिती होती.त्यामुळे स्वातंत्र्यानंतर लगेच privatisation मधून विकास अशक्य होता.privatisation मध्ये concentration of wealth चा धोका असतो.सरकारी धोरण संपत्ती चे वितरण सर्वांपर्यंत जावे असे होते. पण सरकारमधील अनेक IAS विकले गेले आहेत. नारायणमूर्तींनी IAS नको असे विधान केले आहे. १९९१ नंतर इन्स्पेक्टर राज संपले पण आर्थिक concentration वाढू लागले आहे.खाजगी क्षेत्रातील तरूणांसमोर अशाश्वती ही समस्या आहे.
• श्री अरुण करमरकर -- privatisation चा विचार करताना फ़क्त privatisation of production चा विचार नको.planning चा अभाव ही देखील समस्या आहे.सरकारी धोरणावर दबाव टाकणे हे स्वप्नाळू चित्र आहे जे अत्यंत अवघड आहे.
• श्री किरण लिमये -- NREG देशभर लागू होण्यामागे NGO चा दबाव हे महत्त्वाचे कारण आहे. सरकारी धोरणांवर दबाव टाकणे ही प्रक्रीया सुरु झाली आहे.
• श्री विवेक गणपुले -- मुलतः नियोजन आवश्यक आहे का ? पूर्वी भारत निर्यात प्रधान देश असताना शासकीय़ योजना नव्हती फ़क्त शासन करांद्वारे नियंत्रण ठेवत असे.सरकारने अधिक हस्तक्षेप करु नये अशी त्यावेळी मान्यता होती.
• श्री रविंद्र महाजन -- Public Sectorचा role आहे उदा mtnl असल्यामुळे मोबाईलचे दरांवर नियंत्रण राहते.तसेच सरकारि धोरण ठरवताना सक्षम अनुभवी सरकारी अधिकारी प्रत्येक क्षेत्रातील उपलब्ध होतात.
• श्री पद्माकर चव्हाण -- शेतीसाठी सोयी नाहीत.शेतीमालाला दर नाही.
• श्री किरण लिमये -- बाजाराच्या शेतकर्याला मोबदला देण्यावर मर्यादा आहेत.
• श्री दि वि अलाटे -- हिवरे बाजार सारखे प्रयोग होण्याची गरज आहे.
• श्री अरुण करमरकर -- ग्रामविकासाच्या प्रयोगांचे सार्वत्रिकीकरणाचे प्रयोग अपयशी आहेत.
• श्री दि वि अलाटे -- कमी पाण्याची पिके तसेच मिळणारे सर्व पाणी साठवणे यामध्ये NGO चा role महत्त्वाचा आहे.
• श्री सतीश मराठे -- महाराष्ट्र शासनाने NREG ची स्वतः ची स्वतंत्र योजना केली आहे. उदा शेततळे योजना प्रगती प्रतिष्ठान तर्फ़े जव्हार तालुक्यात राबण्यात येत आहे.
• श्री शरदमणी मराठे -- महाराष्ट्र semi erid प्रदेश असल्याने मुळातच शेतीविकासाला मर्यादा आहेत.धरणे बांधण्यात महाराष्ट्र अग्रेसर असूनही सिंचनाखालील क्षेत्र मर्यादित आहे.
• श्री दि वि अलाटे -- बर्वे कमिशन ने २२% पेक्षा अधिक क्षेत्र सिंचनाखाली येऊ शकत नाही असे मत व्यक्त केले आहे.त्यामुळे कमी पाण्यात उत्पादनासाठी ठिबक सिंचनासारखे प्रयोग करावे लागतील.
• श्री सतीश मराठे -- प्रगती प्रतिष्ठान च्या प्रयोगातील अनुभव उदा महिलांनी crop pattern बदलताना देवपीक घेणे सोडणार नाही असा आग्रह धरला. देवपीक ही नाचणी आहे .(जव्हार)
• विदर्भात आत्महत्या ग्रस्त क्षेत्रात शेतकर्यांनी commercialisation मुळे crop pattern बदलला. तेथील ज्वारी हे देवपीक घेणे बंद केले.देवपिक ही संकल्पना नष्ट होऊ नये यासाठी NGO चा Role महत्त्वाचा आहे.
• श्री रविंद्र महाजन -- ग्रामविकासच्या विविध प्रयोगांचा अभ्यास करण्याची गरज आहे.NRD foundation ह्या संस्थेने खाजगी प्रयत्नातून व्यावसायिक तत्त्वावर हे करण्याचा प्रयत्न केला आहे.त्यांच्या घोषणा - गाव का छोरा गाव में / गाव का पानी गाव में/ गाव का पैसा गाव में
• श्री सतीश मराठे -- प्रगती प्रतिष्ठान च्या माध्यमातून सुनंदाताई पटवर्धनांचे जव्हार तालुक्यात चाललेले प्रयत्न प्रभावी ठरत आहेत. २५० गावातील २५०० शेतकर्यांचा सहभाग ह्या मध्ये आहे. ३५ चेकडॅम्स बांधले आहेत. पम्प बॅन्क काढली आहे. उत्पनात ४०% वाढ झाली आहे.
• श्री रविंद्र महाजन -- परिसर ह्या पुणे येथील संस्थेने विकासावर पुस्तक तयार केले आहे.
• श्री विठ्ठल सोनटक्के -- धामापूर येथे school without wall असा प्रयोग सुरु आहे.
• श्री विवेक गणपुले -- महाराष्ट्राचे विकासातील + ve / - ve बिंदूंची सूची करण्याची गरज आहे.उदा.स्रीशिक्षणात महाराष्ट्र अग्रेसर आहे power generation मध्ये महाराष्ट्रात खाजकीकरणाचे प्रयोग पूर्वीपासून झाले आहेत.
• श्री दि वि अलाटे -- co operative activity चा अभाव आहे.
• श्री रविंद्र महाजन-- + ve / - ve बिंदूंची सूची करण्यासोबत पुढील नियोजनाच्या दृष्टिने काय बोध घ्यावा अशा बिंदूची सूची सुद्धा काढणे योग्य ठरेल.
• श्री पद्माकर चव्हाण -- CSR ह्या विषयाचा उपयोग होऊ शकतॊ. त्यासाठी विकासाचे प्रयोग आणि corporate ह्यांच्यात cordination करणे त्यांच्या पैशाचा योग्य विनियोग होण्यासाठी प्रयत्न करणे यासाठी व्यावसायिक प्रयत्नांची गरज आहे.
• श्री रविंद्र महाजन -- मुळ टीपण HDI च्या नुसार लिहला आहे.endowments कोणत्या? strong points कोणते? भविष्यातील दिशा ,प्राथमिकतेचे विषय यानुसार मांडणी ची आवश्यकता आहे.
• श्री विवेक गणपुले -- fishing क्षेत्र महत्त्वाचे ठरू शकते कारण महाराष्ट्राला ४५० किमी चा किनारा आहे.
• श्री सतीश मराठे-- छोटया स्तरावर processing युनिट चा प्रयोग यशस्वी झाला आहे . प्रगती प्रतिष्ठान ने महिला SHG च्या मदतीने नाचणी/वरी बिस्कीटस बनवण्याचा यशस्वी प्रयोग केला आहे.
• श्री रविंद्र महाजन -- प्रत्येक तालुक्यात शैक्षणिक केंद्रांचा विकासासाठी आधार म्हणून केला पाहिजे.Education SEZ सारखी संकल्पना राबवण्याची गरज आहे.निवृत्त शिक्षकांचा उपयोग होऊ शकतॊ.तेथे वेगळे नियम, सवलती देऊन entrprenership development साठी प्रयत्न करावेत. ग्रामविकासाचे प्रयोग करण्यासाठी incentive देऊन त्यांना काही क्षेत्र दत्तक द्यावे.
• श्री सतीश मराठे -- Labour laws मध्ये बदल करण्याची आवश्यकता आहे. productivity, social security, exploitation ह्या निकषावर बदल होण्याची गरज आहे.contract labour पद्धतीत शोषण होते त्यासाठी alternative labour laws हवेत. ह्याकामी NGO 's नी पुढाकार घेण्याची गरज आहे.
• श्री किरण लिमये -- labour laws सुधारले तर employment वाढेल.
• श्री सतीश मराठे -- employment केवळ legal contract नाही तर social contract मानले पाहिजे.multiple skill development during employment ह्याचा विचार करुन labour laws modify करता येतील.ह्या विषयाकडे केवळ Hireand Fire ह्या संकुचित दृष्टिने न बघता व्यापक विचार करण्याची आवश्यकता आहे.
• श्री किरण लिमये -- योजनांच्या अंमलबजावणी expenditure चे बजेट देखील महत्त्वाचे आहे.त्याचाही विचार policy सुचवताना होणे गरजेचे आहे.
• श्री दि वि अलाटे -- Emphasis on pressure group development -- दबाव निर्माण करणारा गट हवा आहे.सर्वत्र स्वच्छता व शुद्ध पाणी ह्या गोष्टी लोकसहभागातून घडवता येतील.तसेव शिक्षणामध्ये व्यायाम व व्यक्तिगत आरोग्याचे शिक्षणाचा समावेश केला पाहिजे.

Maharashtra-Economic Policies

(Note for Paricharcha By Shri Anil Javalekar on 27/08/2010)


1. Introduction

‘Maharashtra’, as the name suggest, should be real Maha-Rashtra,in every sense of governance. The state is definitely leading, compared to other states, in the areas of governance and becoming of a welfare state in the present accepted meaning of governance and welfare state. Its achievements are far better while dealing with poverty, unemployment, education and other areas of economic development including agriculture, industry, services and infrastructure. However, the problems for which it was struggling at the time of independence or becoming of a state are not only remained same today but aggravated in most of its intensity and spread. This is the point we should think. There must be something basically wrong with the approach and policies adopted or simply the mode, methods and procedures adopted were incorrect. Or above all, it may be that the people or the participants or the beneficiaries were not worth it. Then what is that what went wrong? My request to you is to open your thinking and start questioning the basics of all the three aspects of governance and welfare state.

2. The basics of Governance and Welfare State

i. After independence Indian Government accepted that the state will be a welfare state and not a property like ownership of a family or a coterie of persons. It will work mainly for the material welfare of all the constituents of the state including its population. The first and most important aspect of it was acceptance of democracy as a mode of governance and second was to take a lead in economic development through planning and direct intervention where ever necessary. The formation of states on the basis of language has led to creation of Maharashtra. But all other things of governance and welfare state are the same as accepted by central government.
ii. The democracy gave us the constitution separating the Judiciary, Legislation and Administration. The Planning gave the approach towards economic development and policies to intervene. These became the tools of welfare state and everything what state was doing was implemented through mode, methods and procedures suggested and adopted by the agencies created under this umbrella-Bureaucracy and politicians were most important among all.
iii. The welfare state though a wide concept, has, in the time process, taken a limited view of material welfare of the people whom the politicians and bureaucrats considered worth it. Thus discrimination and favoritism were main tools of its welfare programmes and policies of intervention. The geographical areas and the sectors/activities were benefited depending on the choice of people or group of people. This practice and policy led to conflict and competition within the state/areas/groups/sectors/activities resulting in for lobbying.

3 Basics of present Economic policies


I. The basics of economic policies are same for Maharashtra as adopted by central Government at national level. The goal declared was to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community The main focus was for industrial development as this was thought as solution for all economic ills-backwardness, poverty and unemployment. The agriculture was considered surplus in employment but deficient in production.
II. The Industrial Development was approached in two ways, one by leading the economy through Public sector and two, allowing SSI sector taking major role for production and employment. This was revised since 1992 and in the name of liberalization and globalization; the private corporate sector was allowed to lead the economy.SSI sector was asked to compete with private corporate sector for its production activities but expected to continue to provide employment.
III. Agriculture sector was left for cooperative sector for its credit and marketing needs. As agricultural production is directly dependent on water: major irrigation projects were undertaken controlling and directing the river water. Supply and use of HYV seeds along with fertilizer and pesticides were thought essential to increase food production.
IV. The experience of industrial sector, whether public, private, cooperative or SSI, in providing employment or creating prosperity in rural areas was not adequate and therefore, since 1970, direct approach to poverty and rural unemployment was adopted leading to implementation of various programmes for alleviation of poverty and creation of employment in rural areas. These programmes were mainly intended to create self employment opportunities or directly increase the income of rural poor families. Banks nationalization was one effort in this direction so as to make easy and cheap credit to rural poor people. The policy toward banks has now changed and this being again liberalized to minimize public sector role.
V. Initially, infrastructure was considered a states responsibility and all efforts were directed to create infrastructure in public sector. Now with the liberalization this has undergone a change. Now private corporate sector was allowed to lead the sector.
VI. All economic and financial policies were initially focused on controlling the domestic and international trade so as to benefit the agriculture and other domestic sector and help to move towards self-reliance. This has now changed. Now protection of agriculture and domestic sector is being removed.
VII. Public sector was considered essential as provider of Major and important services such as railway, airways, road transport, Banks, finance and insurance, telephone and communication, supply of water and electricity, generation of power, petroleum products etc. Now these services allowed to be provided by Private corporate sector.
VIII. The responsibility of providing essential commodities at fair prices was with the state and entire PDS structure was created for the purpose. Now Government thinks it not necessary.
IX. In Maharashtra particularly, cooperative sector was given a role in the production and marketing and farmers were organsied successfully in a group so as to have a influential cooperative sector. Now neither state nor the politicians are interested in this sector.
X. State took initiatives as policy matter to create infrastructure so as to impart skill among the rural youth and many skill development institutions came up. Now the policy is to allow private sector to do the job.

4 The result of the approach/Policies with reference to Maharashtra

I. Though the Maharashtra State has been recognised as the country's industrial powerhouse and maintains the position of being the most industrialized state, rest of Maharashtra, except Mumbai, is considered poor and lacking every aspect of development. Mumbai has around 12% population contributing more than 20% NSDP. Thus, a striking character of economic development in Maharashtra is the wide disparity in income across districts. Mumbai accounted for about 21% of the NSDP followed by Thane (12%), Pune (11%) and Nashik (6%). In other words, these four urban districts alone accounted for about 50% of the NSDP in Maharashtra.
II. The majority of Maharashtrians were engaged in agriculture but remained neglected at the hands of the ruling classes. Much of pro-people development is reflected in the Human Development Index (HDI). The sorry state of Maharashtra is that almost 12 of its 35 districts figure in the 100 lowest HDI districts of the country. No district of another state in the developed category figures in this list. Some districts in Vidarbha and Marathwada have a lower HDI than that of the backward districts of Orissa and Jharkhand.( Anand Teltumbde EPW may 8, 2010 vol xlv no 19 ).
III. Rural poverty in Maharashtra was generally higher than the national average. Urban poverty was less than the national average till the mid-1980s but has crossed it since then. ( M H Suryanarayana Economic & Political Weekly EPW june 27, 2009 vol xliv nos 26 & 27 )

IV. The policy towards water, electricity, roads transport, communication, production and distribution led to a crisis in every sector. It led not only to misutilisation of natural or otherwise resources but deterioration of the same making its total unavailability to future generations.

V. Commercialization of everything and profit motif at any cost made the affairs complicated reaching to non return stage whether it is education , poverty alleviation programmes, employment generation, infrastructure development building and construction ,production and distribution of essential goods and services or even administration of law and order.

5 Alternate approach
i. The basic problem is with the approach of commercialization and profit in everything. Secondly the short vision while dealing with human and natural resources has led to creating more problem than solving it. Role of politicians and Bureaucracy should be minimum and concept of trusteeship should be brought in.
ii. There is need to understand the problem in its own perspective and take visionary approach to solve it. For instance the water problem. Directing and forcing river water and using water for drinking and industrial purpose has led the problem of deserting some other areas and not helping to agriculture as well. Excess drawing of water has led to non availability of ground water. So it is necessary to think of approach by which indiscriminate use of water without the responsibility of recharging stopped. Similar approaches are needed for other such problems.
iii. Industrial development with help of SEZ approach is nothing but wasting common resources for private use. It will only create rich hub with no benefits to poor. The approach of self reliant villages should be given priority. This will help optimum utilization of village sources and stop migration
iv. Development in relation to nature and other habitat along with definite goal of Anandi Jeevan should be base of all economic policies and exploitation of sources just for profit or satisfying of some undesirable needs should be stopped.
v. It should be understood that the goal of current economic policies of just providing equal standard of living to all is not required and is against the nature. Stratification of society is a part of any society and economic development should take this in to account and work towards satisfying needs commensurate with the stratification of society and help society to produce the required goods and services instead of any type of goods and services and making arrangement for its supply. This has led to all the current problems leading to crisis.

Future Economic Policy for Maharashtra

Future Economic Policy for Maharashtra – Important Points

– by Shri D. V. Alate

INTRODUCTION:

Economic policy is a very important part of the Development Policy. Our strenuous efforts to advance the state of Maharashtra economically can be successful if we have the right Development Policy based on national ethos viz. Ekatma Manav Darshan (Integral Humanism). Development can be defined in general terms as ‘meaningful progress towards the chosen goal’. Copying somebody else’s development path does not serve all purpose fully. We will have to have our own development path viz. Samyak Vikas (see appendix1).

Maharashtra State having population over 10 crores is ‘number two’ state in India, next to Haryana when per capita income is considered. Considering “ Human Index Indicators” which takes into account in addition to per capita expenditure on consumer items, life expectancy, literacy, primary ,secondary and higher education & infant mortality rate etc the index works out to be 0.672(as against all India – 0.590 ). However the regional disparities in the state are wide which need urgent attention while considering the economic policies in the development of the state. While Konkan region including Mumbai has an index of 0.723, Aurangabad has 0.613. These existing disparities in a developed state like Maharashtra are alarming. No wonder Vidarbha Region desires a separate state. Considering this, it is essential to evolve economic policies which would help backward regions to come up fast.

One more aspect needs to be thought of the dependence on Govt. efforts alone has not yielded the desired results in the past. The stray efforts by NGOs in different areas have also not yielded spectacular results. Hence it is suggested that henceforth voluntary and cooperative efforts on large scale from NGO’s will be most desirable. NGOs should also strengthen monitoring of development efforts along with the government. Following suggestions take into account some such efforts in the near future. This dual policy should be the soul of the overall economic policy in the future.

Decentralization of planning, decision power, resource mobilization implementation and monitoring of results is essential to increase people’s participation, efficiency of development work and greater percolation of benefits. Arousing of Janachetana (see appendix1) should receive due recognition and priority.

ECONOMIC POLICIES IN FUTURE IN DIFFERENT SECTORS FOR THE DEVELOPMENT OF MAHARASHTRA STATE

(1) Population: Although the population growth rate is decreasing in the past, albeit slowly, it needs further impetus when considering other leading states such as Tamilnadu, Punjab, Karnataka etc. The growing industrialization and growth in services in the state is said to be accompanied by increasing immigration from other states. The alarming situation is seen for Mumbai, the financial hub of the country. With limited land of the city and consistently incoming population, the city is facing infrastructure problems to such an extent that a time has come to restrict the incoming population by making special legal provisions as provided in the Constitution. The future economic policy of the state must give urgent attention to this population problem.

(2) Agriculture: Performance of this sector is very poor; more than half the population of the state depends on agriculture and allied activities. The govt efforts have not yielded desired results; regional disparities are also notified. Following aspects therefore should be seriously considered.

(a) Water is inadequate and uncertain, irrigation projects are generally delayed with cost rising skyhigh and improved seeds are not timely distributed to all farmers. Hence the policy should be more on ‘self help’ as has been done by all exemplary villages ‘Hivare Bazar ‘where the rain water is stored in tanks and used by farmers reducing the dependence on Rain God. It is suggested that all villages where rainfall is generally inadequate and uncertain, the local people should follow Hivre Bazar approach. The policy should also insist on economic use of water by adapting drip irrigation and sprinkling technology. Water must be used economically. In addition the farmers should know the deficiency in the land/soil and understand the need for proper inputs i.e. water, seed and credit insurance etc. Money would be required in a big way but more urgent are continuous education of farmers and efficient agro-services catering to them.

(b) At the same time, the ongoing irrigation projects must be completed as per time schedule. The enlightened citizens should bring pressure on govt to do this.

(c) Wherever river joining projects are suggested] give top priority and compel govt to finalize such projects after due ecological studies. The people pressure should be increasing; in fact NGOs should follow this policy in a big way in practically all sectors.

(d) There is a need for changing age old cropping pattern. For any change, people generally do not accept immediately. Hence scientific approach should be the policy and existing agriculture university centres should be asked to give right solution. The future agriculture policy should follow directives from the agriculture universities.

(e) Agriculture allied activities, including agro-processing, should be given more priority.

(f) More afforestation is necessary. Local people should be given guidance in implanting necessary trees in villages. Area under forests should be grown more. Expert forest officers should provide guidelines areawise for choosing trees to be planted.

(3)Industry: (a) Industrial units are concentrated in Mumbai Pune Nasik areas. While government has created basic infrastructure in and around various cities, the pace of industrialization has slackened in the past few years. This should be changed.

(b) Big industrialists should be requested to move to regions away from big cities and they should be given extra infrastructure facilities and financial concessions. Already some such steps are taken but this has to be vigorously pursued. Our future policy should be to give boost to this (The government should have managed to get NANO car project in Maharashtra). SEZ policy should be modified to exclude fertile or irrigated land. Farmers should be benefited from the point of employment and they should get proper compensation for the loss of farmers and remaining are not devoid of power and water, the major problems of today.

(c) Small scale industrial units are wiping out from the industrial scene. This needs special attention by the government and the NGO’s alike so that the SSI units survive.

(d) Research in industries is slowly waning out. This should be stopped. The policy would encourage the units having R & D.

(4)Power: The state government has neglected power generation activity since a long time. In the past the state was surplus in electricity generation. It used to supply neighboring states. However of late it is has taken up new projects and is hopeful to eliminate load sheding by 2012 i.e. in the next two years.

At the same time usage of power by consumers has to be very economical and electric power should not be misused. Using power economically at every level should be our target which is possible through public communication.

Losses in distribution of power should also be curtailed to a large extent. Individual consumption of electricity should also be reduced so that people will have ‘power’ in future. Future policy for power should include all such economic aspects.

Use of Solar energy for residential purpose should be made compulsory in big towers/buildings. Technology has proved successful in some areas. If biogas technology is adopted the shortage would came down some villages have been successful in generating power sufficient for their village. Government should sponsor research projects in this area. This movement can then spread to a large extent.

There is also good scope for generating power by wind mills. This should be done on large-scale at the right place.

(5)Transport & communication :

To speed up the transport and communication system the govt has already taken up various schemes; it has also opened this sector for private sector. The qualitative aspect however should be given top priority.

Roads are constructed but potholes are innumerable in a short time. It is high time that this aspect is not considered very seriously by the government. Maintenance of transport system needs special attention. The policy of this sector should be to lay more emphasis on this aspect.

Road network connecting all villages is not yet complete. This rural road network also needs to be improved qualitatively.

Transport activity has been quite spectacular in the state but timeline is not maintained .The age old buses need to be replaced by new ones. Our policy thus aims at improving the existing transport system on war footing.

Emphasis should be on public transport and private transport need not be incentivised as is done now by levying lower tax in some cases.

Transport subsidy should be removed to encourage local units.

For communication, the state has made appreciable efforts; however the usage of computers as yet to increase to speed up the communication. In Mantralaya Secretaries are not well versed with computers; so must be the case in many offices. There is a tremendous demand for this skill. The future policy should emphasis this aspect. The computer use would speed up the implementation faster than hitherto and save time energy simultaneously.

(6)Education:

While primary and secondary education is spreading fast the policy should be to provide min essential infrastructure in all the schools. In villages and also in urban areas separate facilities for boys and girls are inadequate. Pure drinking water facility is not available in many corporation schools. There are no play grounds for the schools. Very few schools have libraries.

Our education policy would involve provisions for all these infrastructure facilities and most important is to provide good and dedicated teachers in the schools. There should compulsory cleanliness and physical exercise fitness among the students. The student must clean teeth twice a day and take min exercise. In fact if these two things are not done regularly in growing age student should not be allowed to appear for the examination. Importance of healthy children is to be imbibed in all.

Teacher’s ability to teach should be examined every 3 years. The policy would be to provide good teachers in the schools which would finalise the students at large.

Higher education should be given special attention because the society needs educated students as well as research students. The present day gloomy picture is that bright student does not opt for research this has to e changed.

(7) Health:

Following measures need to be taken up in order to provide basic facilities in this field.

(1 ) Public health care facilities must be extended to more areas and their services to be improved

(2) Charitable institutions should be encouraged to provide health facilities on affordable rates.

(3) Provide all basic infrastructure facilities in existing government corporations hospitals and insist private hospitals also to have the basic infrastructure facilities would include --

(a)Adequate supporting staff i.e. nurses, ward boys etc

(b) Min cleanliness is observed in the hospitals/wards etc.

(c) Necessary machinery in update condition.

(d) Cleanliness in Hospitals to the maximum

(e) Adequate medical staff available throughout day and night.

The corporations/municipality/nagarpalika should see that in the residential areas cleanliness observed; there are enough dust bins and nowhere ‘kachara’ is seen. Strict rules should be made and implemented for maintaining cleanliness in the city/town/village. No spitting on roads or public places. NGO’s should help the corporation in awakening citizens/public at large. School children should be taught.

Enough greenery should be maintained in every ward/village localities Necessary trees are planted on roads sides.

No Street shopping permitted, no hawkers, necessary mandis/malls be built.

No eatables would be sold in open spaces on streets (like Wada paw) All restaurants/hotels would maintain cleanliness standards, corporation authorities should inspect and penalize if found guilty.

All primary health centres would be equipped with doctors. At present MBBS doctors are unwilling to go to PH centres. Provisions has to be made by approaching other doctors such as RMP

Necessary colleges to start the three years course for RMP and also other barefoot doctors for rural areas.

Mobile medical vans with facilities needed for heart patients would be provided at all primary health cetres. Through mobile; the doctor would start suggesting treatment immediately on call before he reaches the patient.

Use of generic medicines must be made compulsory in public health facilities and public should be educated on this besides persuading the medical practitioners to prescribe on generic basis only.

Make Yoga compulsory in schools besides sports.

(8) BPL – People Below the Poverty Line

(1)Although the percentage of people BPL is slowly decreasing actual number of persons is increasing. It is high time that these people need special attention. It was Maharashtra state which had started Rogajar Hami Yojana to help such people, especially in rural areas. Yet the effect is not substanti

In 2004-05, 30.7% of the population was below the poverty line, the % was higher only in Bihar (31.4%), M.P. (38.3%) and U.P. (32.8%) All India figure was 27.5%

Our policy for this situation should be:

(a) Give them easy laons for constructing katccha, semi pucca houses and

provide necessary bricks and cement/mud etc.

(b) Give them some productive work at least to one person in each family/provide

cottage industry type work such as cleaning the cereals/pulses, making

Udabattis, cotton yarn on Charkha, brick making etc.(list can be made)In turn

they would be given meals.

(c) NGO’s can be the handling authority on the experimental basis. Once a

member gets the requisite skill, jobs and regular payment, the family would

be taken out of BPL scheme and it would not get BPL advantages. The family

would come out of BPL stigma (the details of such a scheme could be

decided later)

(9) Housing -- It is seen that almost all cities /towns/ villages have housing built in haphazard manner. After some years redevelopment of big houses/chawls/residential buildings is more or less essential. The corporations would evolve a scheme where the redevelopment of houses would have to follow some rules which will not only benefit the residents but also help the corporation for maintaining civic amenities. This means housing plans should be ready with municipal authorities. The schemes should add to the beauty of the village/town/city and at the same time, there would not be any scope for creating unclean areas which give rise to various diseases.

(10) General – Among other things, the following also needs to be tackled successfully for better economic progress:

(a) policies to counter rapid urbanization.

(b) reducing corruption level in public services by

- further increasing transparency

- citizen monitoring of major decisions and projects

- automatic and quick prosecution of culprits and confiscation of ill-

gotten gains

(c) to reduce malpractices and contrived shortage of seats in the education

sector, remove licensing by issued guidelines for proper control

(d) consider advance action on the broad-band network to take a leap in

public information and spreading gains of IT.

Above suggested policies in different sectors should be discussed in detail, NGO’s should insist the government/ local self government to implement them. NGO’s should voluntarily give cooperation to government and/or undertakings a few schemes.

In nutshell the suggested policies are:

(1) In future emphasis should be given to remove the economic disparities in different regions of the state.

(2) The government efforts have been either inadequate or exorbitantly costly than envisaged. Hereafter all the schemes undertaken by the government should be scrupulously monitored by NGO’s and they should point out the deficiencies to the government and thus restrict the corruption practices if any.

(3) NGO’s should take up some schemes in cooperation of the citizens just as what happened in Hivare Bazar for restoring rain water in lakes and proper distribution of the same . This it is a tremendous task.

(4) Bring pressure on government to restrict the inflow of population in Mumbai and in other cities since the infrastructure would be inadequate in future to meet the requirement. Steps should be taken in advance.

(5) Government should strengthen its monitoring of development work and can profitably involve NGOs in this.

(6) Decentralization at all levels and to the extent feasible should be practiced.

(7) In agriculture, NGO’s have to play key role; right from getting fine seeds, manures, changing cropping patterns if needed and useful too all. Forestation should be given priority.

(8) In Industry the depression of industries is to be kept in mind. SEZ policies should be studied from district to district.

(9) Electric power generation should be given top priority. See the distribution channels work properly. No theft or minimum distribution losses. All kinds of power generation should seriously studied and tapped.

(10) Transport/communication: In the past the sector was not given priority. Now it should be the quality aspect has to be observed. Here NGO’s should have say in the govt.

(11)Education: (a) Insist for good teachers

(b)Higher education should be given special impetus so that research should be taken up on large scale.

(c) Job oriented education should be given priority.

(12) Health: (a) in hospitals/nursing houses the lacunas should be removed.

(b) Start RMP course so that rural areas would get general medical health services.

(c) Cleanliness in and around the cities/ towns? Villages would be given priority. Thus would nullify the source of various diseases.

(d) Pay attention to health right from school days.

(13) BPL: Special schemes to e executed to remove or reduce the no of people below poverty line.

Appendix 1

SAMYAK VIKAS – IMPORTANT PRINCIPLES

Samyak Vikas or Samvikas or right development will mean fulfilling physical and psychological needs and leading towards the spiritual fulfillment individually and also a happy, contented, prosperous society leading to the common weal.

The following constitute the important principles of right development

1 Integral view of geographical areas, economy sectors, sections of society, all round development of individuals is to be taken. All walks of life including social, cultural are to be optimally developed. Sub–optimization will create problems.

2 Getting more happiness out of minimum consumption.

3 Use of natural resources within their sustainable capacity. This capacity can be enhanced with benign policies & actions

4 Realize full potential of technology. Use of appropriate technology

5 Development should be through social consciousness (Janachetana)- a mental frame of mind where even common people are inspired by the urge to improve and are ever prepared to work with initiative for realization of the goals.

6 Act on principle of decentralization within the country. Complementary centralized approach for dealing with giant problems & schemes as well as foreign governments, institutions or MNCs may be used as necessary.

7 Dharma as the guiding & regulatory principle. Work for freedom through self-regulation, independent regulation, and government regulation in that order of preference.

8 Present & implement right yardsticks for development & evaluation.

9 Harness non-economic motivations like patriotism, sense of duty/responsibility, pursuit of excellence etc.

10 Taking the fruits of development to the disadvantaged sections on priority (Antyodaya)