Budget 2008: Some Exhilarating Proposals for Intellectual India

Many like me must be excited about FM’s proposals about the education sector significant increase in allocation for education- Sarva Shiksha Aviyan, extension of Mid-day Meal for 13.9 crore children and up to upper primary schools, setting up of 6,000 high quality model schools, some more Jawahar Yuva Kendras, Navodaya Vidyalayas in additional 20 districts, and 410 new Kasturba Gandhi Balika Vidyalayas, instituting a large number of scholarships, taking major steps to create knowledge society, establishing new IITs and other institutes of national importance, and awarding three institutes of excellence. Some more ambitious ones may find it inadequate, but the priority has got now the governmental attention.

The total allocation for the education sector (including NER) will be increased by 20 per cent from Rs.28, 674 crore in 2007-08 to Rs.34, 400 crore in 2008-09. What percentage of GDP is allocated to education? Is it now 6% as promised?
Will the extension of Mid-day meal to 13.9 crore children to all upper primary classes stop dropping out? Is it incentive enough to go to schools? Will the teachers be going for refresher courses to update themselves, or be showing more compassion and paying more attention to their students? Will the teaching become interesting enough for the children to enjoy the hours in the schools? The Finance Minister’s intentions are clear, but the roadmap is missing. “The focus of SSA will shift from access and infrastructure at the primary level to enhancing retention; improving quality of learning; and ensuring access to upper primary classes.” FM has mentioned of some of the work done and the new interesting proposals:

Institutes of national importance: An IIM at Shillong; three IISERs at Mohali, Pune and Kolkata; and an IIIT at Kanchipuram have started functioning. Government will establish one Central University in each of the hitherto uncovered States. We propose to make a beginning in 2008-09 by establishing 16 Central Universities. Besides, we propose to set up three IITs in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Tiruvananthapuram; and two Schools of Planning and Architecture at Bhopal and Vijayawada. Eleventh Five Year Plan appears to be giving education its due importance.

Deccan College Post-Graduate and Research Institute, Pune one of the oldest institutions of modern learning in India gets a grant of Rs.5 crore. Three institutions of excellence- Mahatma Phule Krishi Vidyapeeth, Rahuri, Maharashtra; University of Mysore, Mysore; and Delhi University, Delhi will get a special grant of Rs 100 crore each. I dream of the day when 150- year old Presidency College, Kolkata gets a recognition as a heritage educational institute.

Science and Technology: To encourage the students to take to careers in science and research and development, Ministry of Science and Technology will introduce a scheme called Innovation in Science Pursuit for Inspired Research (INSPIRE) that will include scholarships for young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years). FM has provided Rs.85 crore in 2008-09 for this inspired contribution to building a knowledge society.

Government has accepted an important recommendation of the National Knowledge Commission to inter-connect all knowledge institutions through an electronic digital broadband network that will encourage sharing of resources and collaborative research. FM provided the Ministry of Information and Technology Rs. 100 crore for establishing the National Knowledge Network.

Information Technology: FM has enhanced the allocation to the Department of Information Technology from Rs.1,500 crore in 2007-08 to Rs.1,680 crore in 2008-09 for driving the growth of Information Technology and Information Technology Enabled Services. A scheme for establishing 100,000 broadband internet-enabled Common Service Centres in rural areas and a scheme for establishing State Wide Area Networks (SWAN) with Central assistance are under implementation. A new scheme for State Data Centres has also been approved. FM has provided Rs.75 crore for the common service centres, Rs.450 crore for SWAN and Rs.275 crore for the State Data Centres.

One day in an integrated public-private initiative, all the 6.5 lakh schools of the country, including those in rural India must be part of the knowledge network and get benefit of online education.

Let the country get status of knowledge-predominate country. ‘Tamso Maa Jyotir Gamay’.

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Budget 2008: Terrible, Historic, Sweeping, Election, or Election-oriented

I thought I must also write about my views on the budget 2008 presented yesterday. For senior citizens, the exemption limit has been raised to Rs 2.25 lakh. I don’t bother about enhancement of exemption limit at my age when I don’t have that high an earning. I don’t know how many of senior citizens who are retired are earning good enough money for paying taxes. It must be a miniscule percentage. Even after working for almost 39 years, though in private sector, many like me hardly get any significant pension earning. As such the prices of all the commodities of daily use have gone so expensive that many a times we are forced to think before buying some essential things too. Even many, and I am also one among them, do take the risk of major illness. The premium of medical insurance for persons above 60 years of age is either pretty high or the insurance companies don’t have anything for them. And the cost of hospitalization and treatment as well as medicines has skyrocketed. It may be cheap with respect to the cost in UK, or US but for a retiree like me it is exorbitant.

All the time I wish some finance minister will introduce a scheme in which the persons paying significant income taxes for 20 years or more will be covered by some respectable medical insurance scheme, at least for major hospitalization. However, I don’t think it to happen ever.

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Budget 2008: Failed Promises of water Bodies and Industrial Training Institutes

I listened to the budget speech as religiously as I used to do earlier when it was necessary for adding to my professional excellence at work.

Mr. Chidambaram had proposed two missions in his first budget as UPA’s Finance Minister in 2004 that I got interested in. Both were of immense importance. First was his missionary zeal to get all the old water bodies in the country that were getting silted and vanished, renovated. It would have helped in irrigation, fishery, and tourism too. The FM never tells how many of the water bodies have been repaired and put back to their old glories. However, the FM has not dropped it from his agenda and has smartly put in to the sates’ responsibility with a statement: “Agreements have been signed with the World Bank by the Governments of Tamil Nadu, Andhra Pradesh and Karnataka under the project to repair, renovate and restore water bodies. The three agreements are for a total sum of US$738 million that will benefit a command area of 900,000 hectare. I am confident that similar agreements will be signed soon between the World Bank and the Governments of Orissa, West Bengal and some other States.” Why couldn’t the FM give a figure of the water bodies repaired in different states? Perhaps, the states didn’t take up the project seriously and carry out the work. Why can’t the creation of water bodies be a prime task of NREGS in rural areas where water scarcity causes poor farming yield? It can also be good prevention for the flood too, if carried out in a planned manner.

The second of his proposal right in 2004 budget was to upgrade the large number of Industrial training Institutes that was getting ineffective in providing the skilled manpower for the industrial development. Unfortunately, though the Finance Minister as well as CIIs and FICCI have been taking steps, but the progress is dismal. It hardly shows the tremendous need of the industry that look for double-digit growth. Let us look at what the FM has talked about it in the budget speech. “Under the World Bank assisted scheme, 238 ITIs are undergoing upgradation. Under the PPP scheme, 309 ITIs in 29 States have been identified with corresponding industry partners and agreements have been signed in 244 cases. 300 more ITIs will be upgraded in 2008-09.”

I think all the institutes would have undergone up-gradation by now. CII also has failed to keep the promises. Basically, India requires these institutes in thousands in both types Industrial Training Institutes that provides diploma courses as well as trade schools or vocational training institutes that train for trades of all types. And all these institutes would have been attached with some or the other private companies that would have been made responsible for the upgradation at least as its contribution to inclusive growth. The announcement of setting of a non-profit corporation with Rs 15,000 crore as capital from government, the private and public sector and bilateral and multilateral sources to address the major concern of skill shortage and skill development in the Budget 2008. Only time will tell if it succeeds to meet the challenges of manpower requirements of the country.

Today, India is really sort of skilled manpower. As many from the industry, particularly the booming realty sector point out the serious scarcity of masons, plumbers, electricians, carpenters, fitters, and persons of many other skills. As reported, in some state of south, people from Sri Lanka are joining the labour force. Where are the trade schools for filling this vacuum? Can the formal training institutes meet the demand? I feel the education at secondary and higher secondary level must make the training in one employable skill as compulsory for every student. Another institution that can be called on to help in building the skills among the willing young men and women of the country is the defence facilities, if the facilities in the industrial enterprises of various sectors are not sufficient.

The country has 9.5 lakh schools and 220 million schools students. How can there be a shortage of manpower of all the skill levels required from this big a mass? Why do the children drop out from the school? Mid-day meal can keep it only to a very little extent. Scholarship also can make only a little contribution. Education at school level must be made interesting and attractive enough for the kids who come there. Parents as well as the children themselves not start feeling the education as difficult to understand or useless I their perception. Schools from the primary to all levels must have more thrust on exploiting and nourishing their latent talent and creativity with more labs and laboratories to create or experiment with their ideas. Formal traditional knowledge from books is essential but not sufficient enough to keep them attached to the education process.

Why the FM and his government can’t keep the promises made? Why should a person like me who keep on following some specific promises believe in what he promises in the present budget such as IITs in Bihar, Andhra, and Rajasthan? And further will the next government or the FM if not UPA or Chidambaram comes back again have any commitment for the projects? For instance, what happened to five AIIMS promised or interlinking of rivers?

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Economic Survey 2007-08: Some Observations and Views

The survey tabled by the Finance Minister has some interesting data about the country’s economy and obviously for its people to look at future with hope. It also says that with some constraints on the road to growth removed, the country can easily attain a rate of growth that can alleviate the curse of poverty among a significant section of the population faster.And so all sacrifices, if any, are justified for getting into a growth rate of double digits. Mainly, some political parties must change its mindsets.

The full year gross domestic product (GDP) at factor cost at constant 1999-2000 prices is to grow at 8.7%.

GDP at current market prices is projected at Rs 46,93,602 crore in 2007-08 – making it the first time that the size of the economy at market exchange rate will cross $1 trillion. At the nominal exchange rate (average of April-December 2007), GDP is projected at $1.16 trillion during the year while the per capita income is pegged at $1,021. GDP growth at market prices has exceeded 8% in every year since 2003-04. The rate of growth of per capita income has sharply climbed to 7.2% per annum – implying that average income of the Aam Aadmi can virtually double in a decade. Private final consumption expenditure at per person level is up and so are the saving rates. The growth rate of consumption has almost doubled to 5.1 per cent per year during the subsequent five years from 2003-04 to 2007-08, with the current year’s growth expected to be 5.3 per cent, marginally higher than the five-year average.

The rate of investment (gross capital formation) rose to an unprecedented 35.9% of GDP in 2006-07, and is projected to increase in 2007-08. Similarly, the savings rate scaled new highs in 2006-07 reaching 34.8% of GDP in the year.

The total number of IPOs issued in 2007 was 100 when compared with 75 in the previous year. Rs 33,912 crore was mobilised by initial public offerings (IPOs).

Assets under management (AUMs) of domestic mutual funds grew 1.7 times from Rs 3.23 lakh crore during 2006 to Rs 5.50 lakh crore in 2007. Valuation of Indian stocks, as reflected in the price-to-earning multiples, of around 27 times at end December 2007 was the highest among emerging market economies. At present, the market capitalisation as a percentage of GDP is 150 – higher than economies such as China, Japan, South Korea and America.

Interestingly, as reported, the tax collection both the direct and indirect has been rising significantly.

Direct tax collection till February 15, 2008 had registered 41% rise, while the budget had assumed about 17% growth over the revised estimates for 2006-07. The total receipts rose by 22.4% (with net tax revenues rising by 29.3%), according to provisional figures released by the Controller General of Accounts (CGA).

Corporate tax receipts, which now account for about three-fifths of direct taxes, rose to Rs 1,27,683 crore, a growth of 39.84% compared to the previous April-December period. Personal income tax, which accounts for the rest of direct taxes, rose to Rs 77,380 crore, a growth of more than 50% from the last comparable period. Exceeding indirect tax receipts for the first time, direct tax collection now looks set to cross Rs 3 lakh crore or (Rs 3 trillion) this fiscal. The budget estimate of a tax (both direct and indirect) to GDP ratio of 11.8% is likely to be exceeded.


But 41% rise of tax collection raises certain queries. It must be because of the significant rise in the revenue earning and so the output of the taxpayers, both individuals and corporate. It means the individuals and corporate are working hard and efficiently, producing more, perhaps with better productivity, and growing richer. Why does it not reflect in GDP growth rate too that has gone down actually compared to last year?

The rise of tax collection certainly indicates the efficiency of the tax administration and its officers and better compliance of the taxpayers. Should not the tax rates be reduced to reduce the unbearable load on the existing taxpayers and to encourage those who must pay but don’t pay in the net willingly?

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Rail Budget 2008- Nightmare or Dream

Every one who watched the news channels during the time Laluji presented the Railway Budget 2008 in Lok Shabha yesterday must have observed three distinct happenings on the screen. I don’t understand why the budget presentation should be so long and boring. Who are supposed to listen that and for what purpose? Even with all the dramatic of gestures and dialogues, some very original ones and some PJs, Laluji at end had to rush through the reading of his papers. I reminded of a school student who has been participating in a speed reading competition. Why should Laluji read all the routes of the newly introduced or extended trains with names of the places? Was it to tell the members of the region in an easy-to-understand way?

And then the members created the din and bustle that they are famous for and it became very difficult to even understand what Laluji was saying. And I could see the Somnathji as a helpless class teacher of present era, appealing and requesting in vain. Why can’t the MPs behave a little more soberly for a change? Can the voters in general or a representative body of theirs can do something or warn them somehow?

But the most visible scenes on the screen were those of the dancing coolies (porters) at stations around the country. Lalu had announced that all, about 37,000 licensed porters would be absorbed as gang-men, regular employees of railways. What a daring decision! It can be only Lalu who can do that. The jubilation was justified. Who doesn’t want a secure job rather than a humiliating one right from the connotation ‘cooli’? I don’t understand if the porter system at the railway station has been abolished. Will there be sufficient number easy-to-handle airport type trolleys?

But there are some more aspects of the budget that requires adulation for Laluji.

· The turn around of railways with Rs 25,000 crore as cash surplus for 2007-08 is a great performance.

· Proposal for free passes for girl students up to graduate level, and 50% discount for women senior citizens have real humane face.

· Queue free ticket counters in next two years, Up-gradation of some railway stations to world class standard, and green toilets in all trains in four years are dreams that every Indian will like to take with certainty of executions even though delayed.

But I still wish the railway employees and managers must start working for a clean station and passenger friendly attitude without waiting for the complete overhaul in these big projects. I am sure late running of train is one that can be solved by the change in the mindsets of the employees.

Let him introduce a Rajdhani Express for his village. (As reported, work is in full swing to lay tracks connecting his Phulwaria village with Selar Kelan, wife Rabri devi’s native place three kilometers away) How does it matter? After all, he hasn’t built any international class airstrip that a CM of a poor state built in his village that he will never use?

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Manufacturing Moving Marvelously

Many things are happening in the country that assures of a great going in manufacturing sector. While the big manufacturing companies are trying to expand the wings, even SMEs are contributing in a major way. The opening of defence equipment for private sector, many SMEs are trying to get into it. As ‘India Today’ reported recently, M Kumar Udyog (MKU), a small Kanpur-based company produces some 25,000 ballistic helmets costing $200 (Rs 8,000) each in a month and exports to the armies of over 40 countries, including the police and homeland security forces of the US.

Neeraj Gupta, who heads the MKU’s foreign sales department, narrated an interesting aspect. Five years ago, foreign firms cited lower costs in China to counter his price. Recently, Gupta bagged a $15-million (Rs 60 crore) order to armour Turkish naval frigates despite his quote being 40 per cent higher than his nearest competitor’s. Gupta proudly says, “When I recently asked a foreign defence company if the Chinese were not competing any more, they said they were looking for armoured protection, not soft toys.”

5,000 SME companies in India are supplying 20-25% of the components such as helmets, electronic processors, nuclear fallout selters, simulators and unmanned aerial vehicles to state-owned defence firms. According to the Pune-based Defence Electronics Manufacturers Association (DEMA), an SME grouping, there are about 150 major SMEs, located around Pune, Bangalore and Hyderabad, with a combined annual turnover of Rs 1,500 crore.

Even the big manufacturers such as Mahindra & Mahindra, and Tata Motors are getting into defence sector. The Tatas had teamed up with the Defence Research and Development Organisation (DRDO), to make Pinaka rocket launchers. Pinaka was the first defence contract given to private companies in India. The strategic electronics division of Tata Power is manufacturing Pinaka launchers along with Larsen & Toubro. Recently, two Tata group companies–Tata Power and Tata Advanced Systems–had signed agreements with Rafael and Israel Aviation Industries to manufacture a wide range of defence products.

India has become an attractive destination for all the global manufacturers. Nissan Motor and Renault last week signed a MoU with Tamil Nadu government to set up a state-of-the-art automotive facility on 678 acres at Oragadam, near Chennai; and have envisaged an investment of Rs 4,500 crore ($1,140 million) over seven years through their 50:50 venture for creating a capacity to produce four lakh cars per annum.

Honda Siel Cars India has inaugurated a new manufacturing facility at Greater Noida increasing its capacity from 50,000 to 100,000 units per annum investing Rs 1,620 crore. Honda will launch Civic hybrid in a couple of months, and the company’s small car, a petrol version, will be launched in 2009. Honda’s Rajasthan plant will be operational in the last quarter of 2009 that will ramp up its total capacity to 200,000-240,000 units in India. Honda will initially invest Rs 1,000 crore in Rajasthan plant, which is likely to go up to Rs 3,000 crore.

Ashok Leyland, the flagship company of the Hinduja Group, has decided to double investment in Uttaranchal from Rs 1,000 crore to Rs 2,000 crore as a part of its expansion plan. The company would be manufacturing 40,000 annually, according to sources.

India has been doing pretty good in manufacturing of automotive sector. India is the second largest two-wheeler, the 11th largest passenger car and the fifth largest commercial vehicle producer in the world. The sector can create a ripple effect and generate huge number of employment. An additional car manufactured generates five jobs, a commercial vehicle 13. India can certainly become a manufacturing hub of small cars, and even compact cars. ‘Nano’ has laid the roadmap. The government’s Automotive Mission Plan 2006-2016 (AMP) aims to make India a global automotive hub, accounting for 10 per cent of the GDP and creating 25 million additional jobs by 2016. The industry is investing over Rs 75,000 crore, nearly 50 per cent of the investments envisioned in the AMP.

As a welcome change, even the PSUs are getting into global game of excellence. PSUs can outsource and create or support a large number of small manufacturers creating a lot of employment. Potential is huge.

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Indian Railway- Claims or Dreams

I am reading these days two books related to the emerging India: ‘Planet India’ by Mira Kamdar, a Senior Fellow at the World Policy Institute, and ‘Billions of Entrepreneurs‘ by Tarun Khanna, the Jorge Paulo Lemann Professor at the Harvard Business School in USA. Both in their books have talked about their experiences of the Indian Railways while on visit in India. Mira writes about her railway journey from Dadar to Nagpur. ‘But the moment I entered the carriage, all the romance of train travel in India, especially on an overnight train, came rushing back… Traveling by train in India is a nineteenth-century experience.’ Tarun writes, ‘Families stood, sat, or milled about, patiently waiting for a train that would leave at some future, indeterminate time’, in a section ‘Making the Trains Run on Time’.

Since my childhood I have been traveling on the Indian railway. Most of the times, it was a nightmarish suspense right from the beginning to the end. While I faced a burglary right on the Rajdhani at New Delhi station, I still can’t dare to take a train from an intermediate station for indeterminate delays. It is also difficult to locate the bogey you are booked in. No railway staff is present on platform to help the passengers who are booked even in AC classes. I have never asked for a car to receive me at disembarking station, because I never was certain about the delays.

Lalu Yadav, in last four years that he has been the boss of Indian railways, has sold his ministry well. Media have kept on singing the songs of his contributions to improve the performance of Indian railways from loss-making to a profiteering enterprise and even the IIM-A also placed him on a high pedestal. Some have even pronounced him as the best minister.

The profitability of railways might have improved, but during my travels in last one year, I didn’t find any significant difference. With one more budget on anvil on February 26, can Laluji present something really new and innovative? Railway is working on many dream projects. I have selected two of them: the conversion of New Delhi and Patna Railway station to world class level, and the rail link to Srinagar in Kashmir. With the present efficiency of project execution of railways, I don’t know if I shall be able to see the projects completed in my lifetime (now at 68 only). I know for sure that none of the big projects sanctioned for Bihar by Paswan, Nitish, and Lalu as railway ministers has got completed or get completed in next 2-4 years.

I would have liked if Laluji would have awarded a project to IIM-A or IIT- Delhi, if not to RITES, to suggest a low-cost and quickly implement-able roadmap to make the railway stations look decent and efficient.

Can’t Laluji find another Indian consultant or institution for finding ways and means to make possible the timely running of trains? Why should he presume or accept his babus’ excuses that it can’t be done?

Again, can’t railway ensure that a passenger gets a train ticket in five minutes so that huge wastage of man-days standing in queues at the hundreds if not thousands of ticket booking counters of the country is saved? If any one doubts it, he can visit the counter in Brahamputra complex, the only reservation counter in Noida.

Lastly, can Laluji ask the railway employees to be on platform at the railway stations and help the passengers instead of sleeping on their chairs in cabins? I wish he could remember how much troublesome it is to get any information on the railway station. Many improvements can come with just better work practices and without any investment and budgeting for it.

Unfortunately, the railway being a PSU, perhaps we can’t expect any significant improvement. It is surprising that railway has not an office or website that can give the best train route if I wish to see Ajanta & Ellora, Rameshwaram, and Hampi and return to Noida. Do any of the readers know about it? Please let me know so that I can correct my misgivings.

Laluji claims to be one from the masses and rural India. Can’t he provide some suitably designed trolleys for the porters (coolies), many of whom are pretty old and week?

What is the use of the budget full of false promises with no accountability, if not completed?

PS: At least Laluji appreciated one of the issues I wished to be sorted out. He has promised ‘Termination of queues at ticket counters targeted in two years’ in the budget presented today.
Highlights of railway budget 2008
Lalu’s promise: No long queues from 2010.

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CMs of UP and Bihar! Are you listening?

Media organized many debates on its channels. People in general were critical of Raj Thackeray and also his cousin now. But many raised a question, why should the CMs of the states not create jobs for their men? With employment being acute in all states, the people of Bihar and UP will no more be welcome in the other states where they used to migrate for livelihood.

I myself tried to look back and think over on the subject and the efforts made by the political leaders of the states. Except for blaming the central government or opposition parties, the people in power did only amass wealth or did everything right or wrong to please their sycophants party men or the so-called vote bank. They completely neglected to work out a strategy for creating jobs for teeming millions of unemployed youths joining the workforce every year.

It is surprising that a bigger percentage of the young men and even girls from Bihar and UP are manning even the tech industry in South. Last year, three of the children-one girl and two boys, of my relatives (naturally from Bihar) graduated in engineering from three different private colleges from West Bengal have got jobs in South. Is it so difficult to create an environment and provide infrastructure to have the IT and ITeS set up units in Bihar? Did the CMs make an effort and failed to attract the industrialists? The ruling class in UP has totally neglected eastern region. With IITs at Kanpur, and Varanasi and other institutes, UP could have created an IT sector in around Kanpur, Lucknow and Varanasi. Thanks to the proximity with New Delhi and other national capital region townships, a number of IT companies are located in Noida. I don’t know if the CMs of the states, be it Kalyan, Mayawati or Mulayam in UP, Lalu, Rabari, and even Nitish have any knowledge and understanding about the sector and its potential to create an employment base for educated youths. Perhaps, they know only about the ‘sarkari’ jobs of police, teachers and clerks in government that can bulge their coffers. Many a time, I feel like they must learn about the IT’s role from their children (at least Mulayam, Nitish and Lalu), if they can.

Even with all the humiliations that the people of the state are facing in Assam, Maharashtra and may be soon everywhere in the country, they will hardly wake up. I wish the CMs of Bihar and UP could sit with some of the teachers of NIT, Patna and IIT, Kanpur or some state conscious intellectuals working in different states or abroad, however not the sycophants to find some solutions to the unemployment.

I appeal to the CMs of Bihar and UP to read the lead article- ‘The Bhaiyya Effect’ written by Vir Sanghvi in Hindustan Times Sunday, February 24. I quote few sentences for all who matter in the state of Bihar and if they can listen:

Once, Bihar was India’s best-administered state (do not laugh: an international study came to this conclusion in the 1950s); now, it is seen as a wasteland.
The net state domestic product of Bihar was Rs 51,194 crore in 2004-05. In contrast, the state domestic product of Maharashtra was Rs 3,28,451 crore, over six times the figure for Bihar. Even poor, backward Orissa did better than Bihar at Rs 52,240 crore.
The contrast is more striking when you look at per capita figures. In 1993-94, the per capita domestic product of Bihar was Rs 3,037. Eleven years later, in 2004-05, that figure had gone up to Rs 5,772 which, when you adjust for inflation, probably means that income hardly went up at all, and may even have gone down.
Now, look at the figures for other states. In 1993-94, Maharashtra’s per capita domestic product was Rs 12,183 – already four times the figure for Bihar. By 2004-05, it had gone up to Rs 32,170, nearly six times the figure for Bihar.
Uttar Pradesh has fared a little better. In 1993-94, its per capita income was Rs 5,066. In 2004-05, it went up to Rs 11,477 (largely on the basis of Noida, but that’s another story). This makes it better off than Bihar but still worse off than every other Indian state.
As far as the rest of India is concerned, Bihar has become a wasteland run by mafia dons who are pursued by Naxalites. The rule of law does not exist, and politics is largely a question of caste.

I request the CMs to work for providing skills to every young men and creating employment instead of putting forward the excuses. If Bihar could have a Dalmianagar (almost ghost town today), the second largest industrial township to Jamshedpur in 50s and 60s, why can’t it happen today? Hazipur, Barauni, Mokama, Barh, Jamalpur, all can get on the industrial map of Bihar. If Maharashtra can become a hub of sugar industry, why can’t Bihar be one? With co-generation, and ethanol, the sugar industry can easily transform a major part of Bihar as prosperous. If Jawahar Knowledge Centre in Andhra Pradesh can bring a revolution in rural area, why can’t Bihar emulate that? If Andhra can have 200 professional colleges, why can’t Bihar have it? Why can’t the engineer CM of Bihar initiate an action plan for irrigation in draught prone north Bihar instead of blaming his predecessors? It will be prudent for Nitish to cooperate with the central ministers to get NREG and Bharat Nirman executed that will provide employment to the people of Bihar.

It is a shame that the legislators wish to solve the problem in Maharashtra by embarrassing and humiliating Bihar’s Maharashtrian Governor Gavai. They thereby are only encouraging the mob for taking the law in their own hands and create what happened in Hazipur.

It is only the politicians of the state of UP and Bihar who have failed its people. Let the politicians of the state listen the warning in time and change themselves.

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A Lunar Eclipse and Columbus

I found the main door of Shakti Mandir closed. Only after going through the newspaper on return from the walk, I could understand the reason of the closure of the temple. The temple was closed, as it was a period of lunar eclipse that is considered inauspicious. Yamuna says, “When the god (Moon) is under trouble, how can we take any food? She had put ‘Tulsi’ leaves in all the cooked food items in refrigerator. In this era when we know why the lunar eclipse is caused, it is difficult to blindly agree about the age-old belief. I asked Yamuna jokingly, ‘did my prayer to God reach the right place or not? I am sure there were not sleeping or had gone out.’ And I keep on saying, India lives simultaneously in different ages starting from stone era to perhaps 22nd century.

It was interesting to read a story about Columbus and how a similar eclipse saved him.

An eclipse is credited with saving the life of Christopher Columbus and his crew in 1504 in a most amazing manner.

Stranded on the coast of Jamaica, the explorers were running out of food and faced with increasingly hostile local inhabitants who were refusing to provide them with any more supplies. Columbus, looking at an astronomical almanac compiled by a German mathematician, realized that a total eclipse of the Moon would occur on February 29, 1504.

He called the native leaders and warned them if they did not cooperate, he would make the Moon disappear from the sky the following night.

The warning, of course, came true, prompting the terrified people to beg Columbus to restore the Moon – which he did, in return for as much food as his men needed. He and the crew were rescued on June 29, 1504.

With ‘Chadrayan’ in preparation to take a flight to moon, should we still keep on worshipping Moon God? Perhaps, the answer may be in affirmative. Someone will plead that it will please the God and He will make the journey safe!

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Innovating India-2

It is not only the biggies of India Inc that are innovating new products such as ‘Nano’ of Tata Motors. Even at grass-root level, many unknown innovators are doing their best to inventing products and processes to bring a significant quality change of doing things in new ways. I knew about Prof Gupta of IIM-Ahmedabad pioneered the subject of grass-root innovation in India with National Innovation Foundation Dr. Abdul Kalam has been a great source of inspiration for innovation and knowledge dissipation right up to the bottom of the pyramid. I was delighted to know about Paul Basil and his Rural Innovations Network RIN. Nitya Varadarajan reports in ‘Business Today’ about these grass-root innovators and Paul.

· Anna Saheb Udgave, 75, is a farmer from Belgaum district in Karnataka created a rain gun that could simply harness groundwater and spray it across fields covering a particular distance in all directions. The rain gun uses 50 per cent less water than the regular irrigation mechanisms. Called the Varsha Rain Gun, the instrument has since become a huge hit with the receptive farmers in the region and made Udgave a household name.

· J. Meghanathan, 30, a resident of Pinayur, a small village 55 km from Chennai and a history graduate, has developed a semi-automatic brick-making machine. This would reduce labour drudgery while increasing production. This machine is awaiting technology transfer to an SME before it goes into full-scale production. His idea: to make a machine that increases productivity through some form of automation and yet keeps it simple, resulting in better efficiency and profits. Meghanathan’s brickmaking machine has found more buyers for technology transfer than he ever imagined.

· P. Kumar’s, a farmer in Dharmapuri district with a 50-acre holding has developed a self-driven, fuel-run Weeder. Developed at a cost of Rs 45,000, this gadget is a great substitute for the acute labour shortage in the area. It runs about 80 minutes on one litre of kerosene or petrol and is ideally suited for cultivable land of 5 acres and above. Kumar is busy fine-tuning the product with the help of IIT Madras to bring the cost down to a more affordable Rs 30,000.

· As reported, an innovator developed paralysis spraying chemical pesticides and this prompted him to develop an herbal pesticide, while another person has invented a stem injection route for banana plantation as an alternative to spraying medicines.

· K. Murugan of Tutikorin is planning big to scale up his banana synthion separator (that removes silky thread from the banana stem) to put up a factory costing several crore.

· At a small village near Madurai, a family that was once below poverty line, now sucessfully uses the rotary extraction machine to take out herbal extracts for hair oils, face packs and other cosmetics for direct selling to beauty parlours.

Rural Innovations Network (RIN), a non-profit NGO, and its Chief Executive Officer and Founder Paul Basil, himself a mechanical engineer has provided the necessary assistance required to make the modifications in the ideas to make them work effectively RIN turned the crude innovations into viable products. It is great that Paul Basil is focused “on areas relating to water, agriculture, dairy and energy, while other areas were looked on case-for-case basis.”

RIN has a tie up with IIT Madras. Many programmes such as Lemelson Recognition and Mentoring Programme (L-RAMP) http://www.lramp.org/ are trying to bring out the grass-root talents. Even companies such as Tata Consultancy Services (TCS) are trying to encourage the concept.

An SME entrepreneur Servals Automation have partnered with RIN to popularise the Vincent burner for kerosene stoves, which sells 25,000 units a month and the Varsha rain gun. This company is one of the contenders for Meghanathan’s semi-automated brick-making machine.

Similar grassroot innovations are reported from many parts of the country:

An Std VI pass-out who comes from a village in Uttar Pradesh has developed a stove, which uses polythene as a fuel. Four students from the SP Jain Institute of Management and Research (SPJIMR) have stepped in to market the product.

A farmer from Saurashtra improvised a cruiser bike to plough, sow and weed fields! Called ‘Bullet Santi’ (bullet plough). For farmers this is like the Nano car. It costs less than a mini tractor. The maintenance cost is lower than keeping a pair of bullocks.

I wish at least one from every institute of national institute work on the grassroot innovation to exploit and encourage the talent in vast rural and urban areas of the country. For every institute and teacher, the mission must be to explore the creativity of the students and direct it to a right cause to improve the living conditions of those who are still left behind.

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