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Growth Agenda for the Morning after 2009 Elections

By: Kishan Bhatia
Jun-09-2009
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Elections are over. Prime Minister Dr. Manmohan Singh was sworn in on May 22, 2009 for second time and some elected representatives are now jogging for a place in the cabinet. Personal ambitions and agendas of elected politicians are on display. However, India has to stay focused on its priorities for aam aadmi. Outlined here are details of Bharat Nirman Yojanas that potentially can make India a developed nation in about a decade.

Foreign and Regional Reactions

Foreign press is relieved to see that politically India is stable with a Prime Minister they respect. However, leading foreign press editorials are not above offering an agenda of their own. For example, the New York Times (May 18) carried a self-serving editorial titled "India"s Challenges: it is time for India to exercise the kind of regional and global leadership expected of a rising power" (see http://www.nytimes.com/2009/05/19/opinion/19tue1.html?_r=1). Thanks but India has better ideas for its economic growth. As it regains economic growth momentum after set backs delivered by the disastrous global economic down turn of 2008 the regional and global leadership is sure to follow.

India"s annual defense spending is under 3% of its GDP and that of Pakistan is close to 5% of its GDP. Pakistani Op-ed writers (Brown sahibs!) suggested India should decrease its defense budget to please Pakistani establishment that is openly hostile in deeds contrary to its public relations pronouncements on global stage. Unlike Pakistan India is surrounded by three hostile powers one each to west, south-east and North West. India is in no position to relax its military guard.

Pakistan extracted in 2009 from America triple of last six-year"s annual financial aid package to redeploy about 15,000 of its 700,000 troops from boarders with India to Swat Valley to root out an estimated 4,000 Taliban extremists that have deprived it the writ of the nation in the region. That was the right thing to do under the circumstances to please its benefactors, America and Arabs. Pakistan continues to deploy most of nearly 700,000 troops against its imagined enemy to the east.

Mr Brown sahib, why not ask Pakistani establishment to change its foreign policy of acting as a "Muhale-ke-Dada" (or local thug) for America and Arabs of Persian Gulf and Red Sea in exchange for the diplomatic oil or military aid and billions in petrodollars to sustain a missile and nuclear armed 700,000 men army facing an imagined enemy to the east? How about Pakistani rulers adopting policies that should lead it to a path of sustainable self-reliance for developing its economy using proven techniques of human resources development and not the kind that promote global jihad and extremism to extract rent from America and Arabs?

How about for change Pakistani establishment abandoning the regressive policies adopted by following the Arab examples of 13th century Islamic practices? Instead, they can and should learn from the recent European history for invasion of France and rest of Europe that the revanchism brought disaster for Germany at the conclusion of WWII? European nations are prospering today after nearly seventy years of peace (1940s to present) that has allowed it to capitalize with human resources development to place each nation on a reliable, sustainable and self-reliant path of economic growth for good of its masses.

Bharat Nirman Yojanas

Indian leadership knows that in addition to maintaining power, both military and economic that is second to none in the region, for India future lies in strengthen ongoing programs of rural development, social spending for poverty alleviation, employment generation, and infrastructure and skill development to capitalize on its youth (ages 18 to 31) that constitute 51% of its 1.2 billion population. Its leadership knows that future will be shaped by increases in spending on education, health, employment guarantees and development by aggressively implementing Bharat Nirman Yojanas that focus on rural development in areas of irrigation, rural roads, digital connectivity, eliminating power and water shortages and providing rural housing with PURA facilities. A summary of various yojanas follows:

1. Irrigation:

. Bharat Nirman has set the target of creation of additional irrigation potential of 1 crore hectare under irrigation project in 4 years (2005-06 to 2008-09) through the following means
. 42 lakh hectare by completing such major and medium projects
. 10 lakh hectare through implementation of extension, renovation and modernization of schemes along with command area development and water management practices
. 28 lakh hectare through ground water development
. 10 lakh hectare by way of minor irrigation schemes using surface flow.
. 10 lakh hectare by way of repair, renovation and restoration of water bodies and extension, renovation and modernization of minor irrigation schemes.

2. Rural Roads

. To upgrade rural infrastructure, a commitment of Rs. 174,000 crores has been made to Bharat Nirman. As part of the programme, Government of India intends that by end of financial year 2008 - 2009, every village of over 1000 population, or over 500 in hilly and tribal areas, have an all-weather road.
. To achieve the targets of Bharat Nirman, 146,185 kms road length is proposed to be constructed by 2009. This will benefit 66,802 unconnected eligible habitations in the country. To ensure full farm to market connectivity, it is also proposed to upgrade 194,132 kms of the existing associated through routes. A sum of approximately Rs. 48,000 crore is proposed to be invested to achieve this.

3. Telephone Connections

. Telecom connectivity constitutes an important part of the effort to upgrade the rural infrastructure. Under the Bharat Nirman Programme, it will be ensured that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), shall be covered by November 2007.
. Out of the above villages, connectivity in 14,183 remote and far-flung villages will be provided through digital satellite phone terminals.
. Assistance for both capital as well as operational expenditure for these VPTs will be met out of the Universal Services Obligation Fund (USOF).

4. Rural Electrification

. Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) was introduced in April 2005 with aims to provide electricity in all villages and habitations in four years and provides access to electricity to all rural households.
. Under RGGVY, the plan is to establish Rural Electricity Distribution Backbone (REDB) with at least a 33/11KV sub-station, Village Electrification Infrastructure (VEI) with at least a Distribution Transformer in a village or hamlet, and standalone grids with generation where grid supply is not feasible.
. This infrastructure would cater to the requirements of agriculture and other activities in rural areas including irrigation pump sets, small and medium industries, khadi and village industries, cold chains, healthcare and education and IT. Subsidy towards capital expenditure to the tune of 90% will be provided, through Rural Electrification Corporation Limited (REC), which is a nodal agency for implementation of the scheme. Electrification of un-electrified Below Poverty Line (BPL) households will be financed with 100% capital subsidy @ Rs.1500/- per connection in all rural habitations.

5. Rural Water Supply

. Bharat Nirman covers 55,067 uncovered habitations and provides additional coverage to 2.8 lakh habitations that have slipped back from full coverage. Potable water is to be provided to 2,16,968 villages affected by poor water quality

6. Rural Housing with PURA facilities to industrialize rural communities.

Future of India"s growth is tied up in the infrastructure and skill development with emphasis on the Human Resources Development as for wealth generation the need is for skilled labor force globally in demand. India also knows that for an estimated 400 million very poor with earning capacity of Rs. 20 to 40 per day it has to:
1. Provide a monthly supply of 25 kilos of grain at Rs 3/kilo for poor families
2. Continue with populist moves like loan waivers, subsidized grain for consumers, and higher support prices for farmers and
3. That it has to continue implementing affirmative action for scheduled castes and tribes in the private sector by convincing the private sector that it should welcome and proactively pursue training and skill development programmes for historically handicapped sections.


Kishan Bhatia

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