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Financial Daily from THE HINDU group of publications Thursday, November 23, 2000 |
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More, the merrier
Ashok Dasgupta
THIS November has been a very productive month as far as the States are concerned. As if over two dozen States were not enough, three more have been carved out in a single month to fulfil the ``aspirations'' of the people at large in three specific regio
ns of the country.
In keeping with the election pledges of the National Democratic Alliance (NDA) as also some of the other parties in the Opposition, the three new States, namely Uttaranchal, Chhattisgarh and Jharkhand, have been carved out of Uttar Pradesh, Madhya Prades
h and Bihar, respectively.
And uniformly, the severed States have been left poorer, denuded as they are, of their hitherto vast forest wealth and rich mineral resources.
As of now, the euphoria apart in the new States, there is definitely a state of uncertainty and confusion in all the six States that are involved in the bifurcation exercise. While the infant States will have to devise ways and means to garner resources
to stand on their own legs, the authorities of the truncated States too, will have to look around for fresh avenues to make up for their losses. For now, it's celebration time in the new States, having obtained a new-found ``freedom'' of sorts from their
``big brothers''. The teething problems -- which were expected -- with regard to setting up the various authorities as also the politically-ticklish problems in choice of leadership as the Chief Minister of the States are just about over. The ruling reg
imes are currently in the process of settling down and prepare to cross a big hurdle -- the trust vote.
Even after that, it's not going to be all hunky dory. None of the six States involved are likely to be any better off. And for a variety of reasons.
Take Uttaranchal, that has been carved out of Uttar Pradesh and essentially comprises the hilly regions of Garhwal and Kumaon. The major resource and revenue-earner of this region is tourism and although it has a number of natural spots of tourist attrac
tion -- apart from the places of pilgrimage -- most of them are still undeveloped and the authorities will have to invest a lot in developing the infrastructure.
Apart from earnings from tourism, the new State will have to depend on the rest of the country for everything else, while UP will have to develop new tourism spots to make up for the current loss.
With Chhattisgarh carved out of Madhya Pradesh, the severed State has not only lost its large forest cover and its produce but also the coal mines and other mineral reserves. To make up for the loss, MP will have to develop its industries at other places
and a consultant is said to have been engaged to draw up a plan of action for fresh industrialisation.
Among the three States which have been bifurcated, Bihar appears to be the worst off as Jharkhand comprises of the belt which has the richest mineral deposits along with forest cover.
In a way, it's a poetic justice of sorts as till now, the ruling regimes in Bihar and its landlords had been exploiting the tribal region no end. And now, with the treasure land out of their hands, the State is left with nothing much to exploit or talk a
bout.
Little wonder, that the politicians of the State have cut across party lines and have formed a committee to work out an economic package for rejuvenation of Bihar.
On final count, who stands to benefit? It's the politicians in the new States who can wield more powers and can aspire to be Ministers. And in the same category are the top bureaucrats as there will be more posts to fill. The more States, the merrier.
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