The Tribune, Chandigarh, India

Historic handshake

EVER since its formation nearly five decades ago, the Stalinist state of North Korea has been one of the most vilified regimes in the average American's eyes. Small wonder that the images of Secretary of State Ms Madeline Albright shaking hands with the leader of the rogue regime, Mr Kim Jong Il, in Pyongyang present an incongruous picture. To that extent, hers is a historic visit indeed and can pave the way for the breaking of the Cold War mould of American foreign policy. Both sides know the importance of the visit of the first-ever US Cabinet official to the capital of the most closed nation in the world. Mr Kim Jong Il has been more than effusive in his welcome, detailing thousands of schoolchildren to unroll the red carpet and serenade her with song and dance in a stadium. On the other hand, President Clinton seems to see the contours of a foreign policy victory there, which can overshadow the disappointments he suffered in Israel-Palestinian talks and even in the India-Pakistan standoff. By reining in and opening up North Korea, he can cool off an equally hot spot in northeast Asia. The bold initiative has to be seen in the larger perspective of similar overtures made towards Cuba. Mr Clinton actually met Vice-Marshal Jo Myong-rok, the third highest-ranking North Korean official, during his trip to Washington last fortnight on the specific condition that Ms Albright would be visiting Pyongyang and that Mr Kim Jong-Il would receive her. Not only that, all the planning for the Albright visit was compressed into 10 days flat. It is apparent that she will be able to extract credible assurances on a continued moratorium on missile tests and curbs on exports of missile technology. Above all, the USA wants that North Korea should stop sponsoring terrorism.

The USA is the highest donor of food aid to the North, having sent over a million tonnes. This year, North Korea is particularly vulnerable because of the poor harvest caused by typhoons and shortage of fertilisers. It is in a hurry to seek assurances for economic aid and getting off the US State Department list of countries that sponsor terrorism, before the political changes in Washington. As a reward, the USA has offered to explore the possibility of opening a liaison office in Pyongyang and even a Clinton visit may be planned as early as next month. If it really eschews the spread of nuclear technology that will be good news for India because its clandestine help to West Asia and Pakistan in the ongoing missile development programme and missile part exports is already worth more than $500 million a year. Ironically, while the USA is changing tack, its allies are wary of overtures towards North Korea. Japan has expressed its opposition openly. South Korea and European nations also have their reservations. It has been noticed that Ms Albright's Pyongyang visit coincides with the visit of the Chinese Foreign Minister. This cannot be accidental and has led to many apprehensions. The overall assessment of the historic visit will be possible only after Ms Albright is debriefed in Seoul. While things are moving at a brisk pace on the North Korea-USA front, there are apprehensions that this flurry of activity may be used to delay progress on ties with the South.

Medha: not the right path

MS Medha Patkar's decision to launch a nationwide agitation against the Supreme Court verdict allowing the construction of the Sardar Sarovar Dam is unfortunate. She has earned the respect of environmentalists by compiling data on the forms of flora and fauna which are likely to face the threat of extinction because their natural habitat falls in the path of the proposed dam. She has earned the love and affection of the poor by defending the right of the tribals to stay put on the land which needs to be cleared for constructing the dam. She must also be shown the flip side of the agitation spearheaded by her. The delay in the completion of the dam, because of opposition by Ms Patkar's Narmada Bachao Andolan, has resulted in avoidable cost over-run. But she will not pay even a single paisa out of her pocket as an expression of regret for adding to the burden of the tax-payers. She has a right to feel disappointed, and even express her disappointment in private, over the apex court verdict. However, the utterances she has made and the threats she has issued for continuing with the agitation have shown her in poor light. She is evidently in love with the self-created image of the protector of the rights of the tribals. And she sees in the verdict an attempt to destroy the image she had built up over the years through a mixture of demagogy, theatrics and populism. She, however, lacks the courage to accept defeat with good grace. The threat of a nationwide agitation against the apex court's ruling is literally an attempt at saving face. However, she is apparently not aware that she is setting a dangerous precedent by organising street demonstrations across the country against the Supreme Court verdict. Look at some of the slogans and arguments which have emerged from her camp after the highest court in the land allowed the construction of the Sardar Sarovar Dam. It is clear as daylight that she is deliberately committing contempt of court merely to impress the simple tribals that her heart continues to bleed for them.

According to one report, she, along with Ms Arundhati Roy, who has allowed the Booker Prize to get the better of her ability to think rationally , have decided to defy the "state and the law" by holding a demonstration on the banks of the Narmada. Ms Patkar thought that she was giving to the world of letters a quotable quote when she said that "people are bound by life, not just by law". Is it to be presumed that she is determined to protect the right to life, which she would have everyone believe to have been taken away from the tribals by the Supreme Court, by threatening to take "jal samadhi"? The slogans which have been raised at her behest are highly inflammatory and may even result in innocent blood being spilt during the street demonstration in Bhopal today. Someone who does not mind being quoted as having said that "today it is the Sardar Sarovar Project, tomorrow it might be for a Disneyland or a mega city for which the poor tribals and the farmers would be ousted" needs to be taken into protective custody. By equating Sardar Sarovar with "a Disneyland" Ms Patkar has invited the risk of losing the support and sympathy of even her well-wishers. The issue today is not whether the dam should be allowed to be built or not. That issue was settled once and forever the moment the Supreme Court delivered its verdict. The issue now is whether any individual has the right to hold in contempt, through street demonstrations and irresponsible statements, the dignity and legal wisdom of the judiciary. The dispute should not have reached the door of the Supreme Court because the Sardar Sarovar Project did not require interpretation of any point of law or constitutional provision. However, since the issue was taken to the highest court by one of the parties to the dispute, its verdict should be treated as final. Ms Patkar needs wiser counsel than is currently available to her. The presence of Ms Arundhati Roy, who had the audacity to describe the Narmada andolan as second in importance only to the freedom movement, by her side is not a happy sign.

Insured for reform

IN an unusual display of speed and determination for a government agency, the IRDA has formally opened up insurance to the private companies. The Insurance Regulatory and Development Authority (IRDA) issued six llicences, three for life and three for general business, on Monday. The hope is that the licences will start conducting business within a few months, the delay is explained by the need to set up an establishment in various cities. The company promoted by the Reliance group has promised to start the New Year with a new line. A hint of the shape of things to come was available in the initial reaction of one of the new entrants. An official said that he would offer a “new product” by way of insuring company directors against any financial claim. Obviously that is as far as the new insurers can think of in terms of designing and selling their “products” as though they are marketing soaps or towels. Risk cover will now be available for a number of fancy things where the risk will be minimal, turnover elitist and profit large. There is a big market and nobody should grudge the new ones or their “products”. Since most new ideas come from the USA and since most US companies have shown keen interest in setting up shop, much of the “products” will be the brands of that country. IRDA should ensure that it draws up laws keeping Indian conditions in mind and not simply follow the US system. It will have to particularly look into the question of extending tax exemption to life insurance premium and total deduction to companies for general insurance. In fact, LIC rides on the tax exemption clause to boost its premium income, although insurance has intrinsic appeal and utility.

It has been a monopoly for long, 46 years in the case of life insurance and 28 in non-life. In fact, Parliament had to amend the two separate Acts before giving a green signal to the private sector. The result is that every experienced insurance man is an LIC or GIC hand and thus new units have to do their head-hinting from these two corporations. The best of them will find new employers and at fancy salaries. Now there is an Act that prohibits senior bureaucrats from joining a private organisation either during the first three years of retirement or after resignation. If there is no such provision in the insurance sector, the need to bring forward one should be considered. Contrary to fears of the workers, the volume of business of the two corporations will not shrink immediately. For one thing, it takes years to build an organisation and win public confidence. Two, the capital base of the two is very large and the work force huge. This should protect them from a sudden reversal of fortunes. Three, the twosome can always reduce the premium rates, which are obviously on the high side, and make do with a leaner work force. Finally, it should not prevent them from offering stiff competition by mimicking the “new products” and even undercutting competition. Bankmen nursed similar fears before foreign “brands” came in; nationalised banks are none the worse for the experience. If the unity the insurance employees showed during the two years of struggle against privatisation is ideological, they can resolutely work to spread the business to new areas, new groups and new avenues.

URBAN INFRASTRUCTURE
Promises & performance: the big gap
by Satya Prakash Singh

IT is now a decade that restructuring and reforms opera has been unfolding across different sectors of the economy. Commercialisation and privatisation of the urban infrastructure are one of the important scenes of this opera. The sutradhaar, government at the Centre, had provided a promising prologue and seems to be working hard to enact the scene. It is time to review the performance. Has commercialisation been effective in the case of development of urban infrastructure? Has the private sector responded as anticipated in making investment in urban infrastructure projects? Is privatisation per se the solution for the deficiencies and inadequacies of urban infrastructure, or, are there certain necessary conditions for it to be effective?

The issues involved in urban administration have thrown the machinery of urban governance in deep crisis, admits the Minister of Urban Development, Mr Jagmohan. He states: “At present there is no sanitation worth the name for 52 per cent of the urban population. The sewerage system covers only 35 per cent of the population of Class IV cities and 75 per cent of population of Class I cities. About 34 per cent of the urban population does not have any arrangement even for the drainage of rain-water around its habitats. Nearly 60 per cent of the municipal bodies in India collect less than 40 per cent of the urban waste, which is allowed to decompose and putrefy on the road-side and around houses and factories. Quite a substantial portion of it goes into the drains, choking them and creating slush and stink all around, besides providing breeding ground for pests, flies and mosquitoes and cockroaches.”

The facts are indeed painful and ominous. Urban congestion in India is the highest in the world. About 19 per cent of the Indian families live in less than 10 square metres of space, and about 44 per cent of the families in urban areas live in one room only. About 35 per cent of the city population lives in slums. The slums and squatters’ population has been increasing at a rate more than double the growth rate of the overall cities’ population. There are more fatalities each year from road accidents in India than in the USA, though India has only one-twentieth of road vehicles as compared to the States. The nation’s Capital is the fourth most polluted city of the world. The level of suspended particulate matter in the air exceeds the safe limits even in rather smaller cities of Amritsar, Ludhiana and Mandi Gobindgarh of the basically agrarian state of Punjab.

The dust-load in air in the Indian cities is the highest in the world. The polluted air has been responsible for causing a large number of premature deaths, according to a World Bank study. It is estimated that those suffering from air and water-borne diseases occupy about 80 per cent of the beds in our city hospitals. A study conducted by the National Physical Laboratory revealed that Delhi, Mumbai and Calcutta were the noisiest cities of the world. Clearly, the reforms process has not succeeded in achieving its objective.

The problem is serious. The Economic survey-1999-2000 (p.162) published by the Government of India warns, “... the widening gap between the demand and supply of infrastructure continues to raise questions concerning the sustainability of economic growth in future.”

The paucity of financial resources with the government has been well recognised. According to the Minister of Urban Development, at least Rs 20,000 crore per annum would be required over the next 10 years to make good the deficiencies in the arena of urban infrastructure alone. According to the demand put up by the 10 states to the 11th Finance Commission, the total amount needed for devolution to the urban local bodies for the period 2000-2005 works out to Rs 41,000 crore. As against this amount, the commission has recommended only Rs 400 crore for the first year. If the same amount is repeated every year in the coming five years, the total allocation would amount to only Rs 2,000 crore, leaving a demand gap of Rs 40,000!

The need for commercialisation and privatisation in order to supplement the government resources and efforts originates in the above facts. This need has been well accepted by the decision-makers on behalf of the government ever since the dawn of Manmohanomics. Therefore, several initiatives have been undertaken. User-paying instruments for different sectors, given as under, have been promoted:

The water supply sector (advance registration charges, water benefit/ water tax, betterment charges, development charges, octroi, property tax, sale of plots and charges for water kiosks), the sewerage sector (connection charges, sewerage cess/tax, conservancy tax and sale of renewable waste, sludge and nutrient-rich water), the solid waste management sector (collection charges, cess, sale of renewable waste, generation of power, fine for dumping waste), and the transport sector (toll tax, use of land as a resource, advertising to generate resource, surcharge on tickets, toll tax, user charges, developments above and around the terminal, advertising rights).

The initiatives for private sector participation include a Pali bypass in Rajasthan on a Build-Operate-Transfer (BOT) basis, a mechanical compost plant to convert solid waste into manure at Vijaywada, a water supply scheme through private sector involvement in Pune, the Karur road bridge across Amaravathi river on a BOT basis, and a toll-based bypass at Coimbatore on a BOT basis.

In addition to the budgetary support by Central and state governments, HUDCO, LIC, ICICI, IDFC and IL & FS are the major agencies involved in financing urban infrastructure projects. The need for creating synergy among technology, finance and subsidy has been appreciated by the agencies involved in urban infrastructure development. Measures like single-window clearance, joint appraisal and monitoring of projects have been, thus, initiated.

Municipalities have started tapping capital markets for financing their projects. For example the Ahmedabad Municipal Corporation issued a bond based on octroi revenue in January, 1998.

The initiatives taken in the direction of commercialisation for augmenting the budgetary resources are indeed welcome. However, what is pertinent is to ascertain if such initiatives will succeed particularly when the empirical evidence of a decade of reforms is not encouraging in the case of urban infrastructure. The user-paying instruments, their novelties notwithstanding, may not be effective due to certain basic reasons. The implementation cost of the initiatives due to administrative complexities, agency costs, and rampant corruption involved in the public dealings of government officials and political interference may be much higher than the additional revenues generated. The common man suffers from the inefficiencies in delivery of public utilities. In addition, often, the rich manage to reduce/shift the burden of the incidence/while the poor are unable to do so. The pilferage of electricity through kundi connections of slum-dwellers is, perhaps, insignificant as compared to the loss due to the organised theft of electricity committed with the help of officials by their more resourceful brethren, the industrialists and other businessmen.

The payment systems in the case of the government-run infrastructure services, although initially intended to be progressive (where the incidence decreases with income), may turn out to be excessively regressive in effect (where the poor pay at a proportionately much higher rate). When the burden on the large masses of the poor becomes unbearable, it results in social strife leading to enormous social costs. Commercialisation without effective management that realistically takes into account urban politics, besides being honest and efficient, may become counter-productive.

Has the private sector responded enough? No doubt, one is impressed by several significant achievements of the reform process through the initiative of the private enterprise of a global market. The economy is flooded with high quality cars. Tremendous success in the telecommunication sector — Internet, fax, e-mail, e-commerce, e-business, e-governance, etc — has totally changed the quality of life. Yesterday’s fiction is today’s reality. The speed and comfort in travel and transport by air, road and rail have increased. The quality of medical services and education has improved significantly. But all that is only for the rich and the elite.

There is little improvement in the infrastructure meant for the teeming millions in the cities as well as in the countryside. Travel by trains in second class is like a journey in hell. Money-orders sent by poor labourers of Bihar who work day and night in the fields of Punjab to earn a below-subsistence living may take a month or so to reach their villages, if at all. The roads in most parts of the country are in such a bad condition that a bus journey gives you the experience of a camel ride. Private vehicles in Bihar and Uttar Pradesh carry human beings in a manner worse than commodities. The number of people sitting on rooftops and hanging outside a bus is generally more than that of those sitting inside. And the condition inside the buses is so pitiable that people prefer to sit on the rooftops or hang outside!

There is a big gap between what is needed and what exists as regards the infrastructure for the common masses, which is a “merit want”. The field is open for the private sector. Yet, why is the private initiative not forthcoming to fill the gap? Why is private participation so negligible (refer, only five examples of private participation quoted above from the Economic Survey-1999-2000) in spite of the governments’ fervent appeals? The simple reason is that the private sector responds to a need only if it is backed by the consumers’ ability to pay a remunerative price. And that remunerative price is not there in the case of many utilities meant for the masses. The marketing feasibility studies that are crucial for private sector investment look for a “demand gap”, not the unfulfilled social needs!

It is commonsense that a private entrepreneur looks at the risk-return combination of projects. “Higher the return, better is the project. Lower the risk, better is the project.” He makes a ranking of the alternative projects, albeit in some subjective manner, on the basis of the above criterion and chooses the best. Thus, if the infrastructure projects that serve the need of the masses involve a low return and the high risk, the motivation for private investment is very low. The logic applies with at least the same force in the case of foreign investments too. The entrepreneurs may seek government subsidy to compensate for low-expected returns. They may seek some kind of government protection against the risks involved. Inability of the government to provide subsidy and/or protection results in private investment not forthcoming. In any case, dependence of the private sector on the government is not in line with the modern reform process that relies on the free-play of the market to guide the allocation of resources.

Privatisation per se may not ensure efficient and a high-quality delivery of infrastructure service either. The efficiency of a private enterprise-based system is crucially dependent on the extent of competition among the suppliers in the market. There are two models of private participation in the urban infrastructure services. In one model a project is identified, private participation is invited, and a contract is awarded to the party that gives the best bid. Thus, there may be some kind of competition among the bidders at the time of entry. But once the contract is awarded to an entrepreneur, he becomes a kind of monopolist who can exploit the consumers. Things become worse when he has to share the booty with corrupt government officials and politicians. The case of roads, bridges and public buildings of poor quality built by private entrepreneurs falls in this category.

Projects of water and electricity supply, sewerage, solid waste management, etc, with private participation may also fall in this category. The contract is given to one or a few to provide for a service in a city, a town or a geographical region. Thus privatisation only changes hands from one monopolist — the government — to another, the private entrepreneur. The result may again be a poor quality of service and the exploitation of the consumers with a highly inelastic demand and weak bargaining power. The success story of a few private sector projects to provide efficient and effective infrastructure service is due to the quality of their management and their commitment to quality, and not due to privatisation per se.

In the second model, a particular service or product is open to private participation in the free market. Several entrepreneurs enter the market and compete among themselves to supply it. In such a case, due to competition the efficiency of supplying quality products or services goes up. The inefficient have to make a exit. The fittest survive. For example, if there are several entrepreneurs who ply their buses on the same route of a city, the quality of the srevices is expected to improve.

The nature of most of the urban infrastructure projects — huge investment requirements, indivisibility and unattractive return-risk position — is such that the second model of private participation may not be feasible in the near future. Privatisation per se does not appear to be the answer to the deficiencies of urban infrastructure which the current fashion in arguments and public rhetoric seems to imply. One can visualise the emergence of large companies, both national and international, with sector-based sophisticated and specialised technologies to provide quality infrastructure efficiently and economically in, say, next 10 to 15 years. Until then the user public will have to manage by learning proper utilisation of the limited infrastructure like responsible citizens. There is much to be desired regarding the attitude of the public, both rich and poor, towards the environment in general and urban infrastructure in particular.

The writer is Professor, University Business School, Panjab University, Chandigarh.

My little lake
by O. P. Bhagat

MORE dusty than green in the lawn in front of my block. No grass grows on several patches. Standing out among them is the one in the middle — quite large but a bit low.

Nobody takes care of the lawn. Nobody, except the area sweeper who sweeps it now and then. Children go and play there. Sparrows and some other birds too pace and peck around there.

If it rains for some time, water collects in the middle of the lawn. After the rain children rush there. Some set their paper boats sailing on the water. Others look at the boats and talks and laugh.

While all this goes on, some naughty boy tries to sink a boat. This triggers a loud protest or a quarrel, even a fight.

The water stands there for two or three days, until it slowly seeps into the soil and evaporates. This pool is what I call my little lake. Childish, you will say. Maybe. From the balcony of my flat I often look at it. Sometimes I go down to the lawn for a closer look.

While the rains last, I see the lake form, expand, shrink, vanish and form again. It all depends on how much and how often it rains.

No grass grows in it, but it is somewhat green — with moss. In the water swim scores of tadpoles. They are like tiny black balls with thin, wriggling tails.

Some tadpoles have already turned into small toads. Lightly they hop about on the banks or on the grass nearby.

Sometimes sparrows come to the lake. Like the children, they too have plenty of fun there. They jump into the water as do bathers into a swimming pool. But they splash about and not swim there.

Dipping their breasts in the water, they flutter their wings repeatedly. Drops of water rise into the air and fall about them like the spray from a fountain.

They do it again and again, rapidly and rapturously. When they come out of the water, their feathers have stuck together. As though they had been starving, they look emaciated. And quite unsightly too.

Soon they fly up and perch on the parapets and shrubs around. There they shake off most of the water. Then they puff and preen, until they look smart as before.

Mostly the lake is calm. It looks like a lucid but shapeless sheet of glass. In it you can see the bead tree that stands on one side of the lawn. So sharp is the image that you can make out every leafy branch and every bunch of green beads or berries.

Also reflected are parts of the flats behind. So clearly that you can spot the windows in the yellow-washed walls. Now and then you see in the water the bird that flies over it. Or the white or grey cloud in the blue of the sky.

It is always a lovely picture.... Suddenly a bead falls from the tree. It creates circles on the water’s surface. The picture quivers and disappears.

As the circles smooth themselves out, the lost picture comes into focus again and looks lovely as before.

The sun sets. Scraps of clouds are dyed red, orange and gold. They lend a new charm to the evening. My lake too looks different. It seems to be full of red and orange and golden water, or glowing with red and orange light.

Dusk creeps in. From green the bead tree looks almost black. Under it the lake too turns dark and gloomy. As night falls, the grass and the water seem to be one smudgy piece of ground. The show is over....

No. A light is switched on in the flat behind. With that a lighted window appears in the dark lake.

You’d say that there is a fairy palace in the depths of my little lake.

Funds for Narmada dam assured
From Thakor Patel in Gandhinagar

Gujarat has enough money to raise the height of the Sardar Sarovar dam on the Narmada river to 138 metres, Chief Minister Keshubhai Patel has said.

“Finance will never be a constraint for the dam,” he says. Though the World Bank and Overseas Economic Cooperation Fund (OECF) of Japan withdrew from the project after committing aid, the Chief Minister said the State Government would not hesitate to approach them and the Asian Development Bank (ADB) again, if need be.

The World Bank had committed $450 million and the OECF had sanctioned credit amounting to Rs 1.50 billion. However, they withdrew from the project following controversies over the environmental impact of the dam.

The Sardar Sarovar Narmada Nigam Ltd, the nodal agency to implement the Rs 370 billion project, then raised money by floating Narmada bonds.

The government plans to resume work on the dam on October 31, the birth anniversary of India’s first Home Minister Sardar Vallabhbhai Patel after whom the dam is named.

However, finances for the dam is again in focus as the government is reeling under a severe resource crunch, forcing it to cut its budgetary expenditure and disburse only 50 per cent of the festival bonus due to its employees. Gujarat has spent nearly Rs 100 billion so far on the project and needs to spend another Rs 10 billion immediately.

The height of the dam stands at 85.3 metres and the Supreme Court has allowed Gujarat to raise the height to 90 metres. Thereafter, it will require the Narmada Control Authority’s clearance for every five metres of construction to take it to the envisaged height of 138 metres.

“At present, we have enough money for the dam. The government will consider issuing bonds for the dam if need be. Besides, we will also try to collect the dues of other beneficiary states — Maharashtra, Rajasthan and Madhya Pradesh — towards construction of the dam,” Patel said.

Work on the dam remained suspended for several years because of a case filed in the Supreme Court by the Narmada Bachao Andolan (NBA). However, the Chief Minister said the government did not plan to take any legal action against the NBA.

Patel said more than 200 km of the main canal was ready. “A lot of progress has been made in water deficient north Gujarat and Saurashtra. But a lot of work is yet to be done. I have requested the Chief Ministers of Maharashtra, Rajasthan and Madhya Pradesh, the Union Water Resources Ministry and the Environment Ministry to cooperate with us for speedy implementation of the project,” Patel said.

On Madhya Pradesh’s opposition to raising the dam height beyond a limit, Patel said: “I have written to Madhya Pradesh Chief Minister Digvijay Singh that we have lost six years. Now that the Supreme Court has given its judgement, let us join hands. It is a national project. People of four states are going to benefit. I have expressed Gujarat’s gratitude to Maharashtra and Rajasthan for their cooperation so far. I am sure they will continue to extend help in the future too.” — India Abroad News Service

Islamic museum a non-starter
From Mohammed Shafeeq in Hyderabad

Ambitious plans of the Andhra Pradesh Government to set up India’s first Islamic culture museum have failed to take off with both the State Archaeological Department and the Wakf Board, which looks after Muslim religious affairs, unable to evict squatters from an ancient monument.

The encroachments at Badshahi Ashoorkhana, the second oldest monument in the city after the famous Charminar monument, have been hampering plans of the Andhra Pradesh Tourism Development Corporation (APTDC) for more than a year.

Conceived as a part of a major initiative to boost tourism, the proposed museum will be dedicated to Islamic culture and will be a showcase of history, art and culture of the Islamic world and of Hyderabad in particular.

It will have a collection of antiques representing Islamic history, art, calligraphy, pottery, metal work, glass, lacer work, costumes, textiles, embroidery and jewellery.

“Hyderabad, with its long history of Muslim rule and rich cultural heritage is the most suited place for country’s first Islamic cultural museum,” G. Kishan Rao, Managing Director of APTDC, said. He said there was no museum in the country depicting Islamic culture and few such museums worldwide.

Delhi-based EDWA Consultants had prepared a feasibility report one-and-a-half year ago and noted that such a museum would have tremendous tourism potential. It suggested that the museum should be housed at Badshahi Ashoorkana.

This area was identified as it has many monuments with great historical significance and architectural value. The Badshahi Ashoorkhana or a sacred place for the chiefs is only a kilometre away from Charminar and was constructed by the founder of Hyderabad, Mohammed Quli Qutub Shah, in 1596 AD, two years after he built Charminar.

The Tourism Department plans to construct the proposed museum on the vacant land in front of the monument but a number of encroachments are hampering these plans.

The APTDC had written to the State Archaeological Department to evict squatters occupying the premises of the monument. The Archaeological Department, which is responsible for the upkeep of the protected monument, passed the buck to the Nizam Religious and Charitable Trust, saying that the trust was in possession of the land and was receiving rent from the tenants.

The trust, however, said it had no tenants and that the occupied land was a Wakf land. The state Wakf board, in turn, said it was helpless in the matter as the squatters were there for last 50 years and that it had no proof to wage a legal battle.

The Tourism Development Corporation has now asked the Hyderabad district collector Rajeshwar Tewari to either take steps to remove the squatters from the monument or show it a suitable alternate land for setting up the proposed museum. — India Abroad News Service