The Tribune, Chandigarh, India

EDITORIALS

Message in Economic Survey

THE annual Economic Survey for 2002-03, tabled in Parliament on Thursday, has a depressing news for the government. It has put a big question mark on the claim to achieve an 8 per cent annual GDP growth rate in the Tenth Five-Year Plan period. The worry stems from the fact that there is a sharp decline in the GDP growth from 5.6 per cent in 2001-02 to 4.4 per cent in 2002-03. As a result, the BJP-led NDA government at the Centre may find itself in a quandary. If it goes by the Survey’s findings, it will have to implement the Kelkar Task Force’s recommendations for tax reforms. But this may not be in accordance with the principal ruling group’s electoral calculations in view of the controversy generated by the Kelkar panel report. Anyway, things should be clear when the General Budget will be presented in the central legislature. It will be interesting to watch the moves of the government to meet this “major challenge” on the fiscal front. The Survey sees a strong case for reforming the regulatory regime for agriculture, considered a major roadblock on the way to bringing the country to the respectable GDP growth level as targeted. The Kelkar panel wants the introduction of an agricultural income tax. The Survey too endorses it. But the ground realities plus realpolitik do not support such a move. Agriculture in India is still at the mercy of weather gods. The monsoon failure hampered agriculture’s performance in 2002-03 and brought down its growth to 3.1 per cent from 5.7 per cent the previous year. This has had its overall impact on the GDP position. In such a situation, the farming sector deserves every kind of help from the government, and not a burden in the form of tax, however tempting it may be for setting the financial house in order. Yet agriculture is a major area of concern because it is playing a negative role. The ever-increasing MSP (minimum support price), swelling foodgrains stocks and unending subsidies on fertilisers and other inputs are making life miserable for the government’s finance managers. Hence the suggestion to encourage farmers to shift their attention from wheat and rice to oilseeds and other cash crops. Theoretically, it looks allright, but there is no mechanism to build the necessary confidence among the farming community, ensuring it that the changeover will not be risky for them. There is a different kind of fear being expressed in this regard. India’s surplus foodgrains position may get dangerously altered in the event of a major crisis caused due to two-three consecutive monsoon failures or other internal or external factors. Thus, agriculture poses a complicated challenge. That is why many economists favour research support to increase farming productivity, which may lead to a reduced cost of production and improved competitiveness.

The Survey presents a rosy picture of almost all other areas. It is heartening to learn that industrial production has doubled in one year, from 3.3 per cent in 2002-03 to 6.1 per cent in the year under discussion. Exports and the services sector too continue to show encouraging performance. There is a clear stress on the need for speeding up the disinvestment process, besides dereserving more areas so far meant exclusively for small-scale industries. This is, of course, the demand of the times. But there is an alarming aspect so far as the SSIs are concerned. In India, the SSIs, like the services sector, provide the maximum employment opportunities. These units, therefore, deserve a considerate treatment. The government must be sure whether the SSIs will be able to face the competition from large units at this stage. If not, they should be helped in different ways to sustain themselves in the larger interest of the nation.

Good turnout

HIMACHAL PRADESH voters have lived up to their reputation of taking part in the elections enthusiastically. The 70 per cent turnout recorded in Wednesday’s poll was only slightly lower than the 71 per cent recorded in 1998. What helped matters was the bright sunshine which encouraged people to come out of their houses in good numbers on the D-day. Had the weather been as bad as it was during the electioneering, the voting percentage might have registered a sharp dip. But ignoring this factor, various parties have claimed that the large voter participation goes in their favour. Leaders of the BJP, the Congress as well as the HVC have asserted that the voters came out in droves mainly in solidarity with their respective parties. Obviously, the electorate has a message to convey. What exactly it is will become known only when the results are out. Till then, every contestant is entitled to his optimism. The voters have become quite mature and do not reveal their mind easily. The presence of rebel candidates, undercurrents of a nebulous nature and high-profile, low-calibre electioneering have all made the elections interesting. Since Himachal Pradesh is being seen as a test case after the Gujarat elections, its importance on the national scene has magnified greatly, so much so that the simultaneous elections in Tripura, Meghalaya and Nagaland have been relegated to the second place. Another noteworthy feature is that the Himachali voters have taken to electronic voting machines enthusiastically. Technical snags did occur at a few places but the EVMs did an impressive job.

The polling in the North-East was marred by violence in which seven persons were killed. These included four BSF personnel, a polling staff member and a driver shot when a BSF vehicle was ambushed in the insurgency-prone Tripura. This might have been the handiwork of the All-Party Tiger Force, which had given a call for poll boycott. A clash between party workers in Nagaland Chief Minister S. C. Jamir’s constituency killed one person. Electronic voting machines were looted at a few places. But these were stray incidents while the elections in the rest of the areas passed off peacefully. What matters most is that voter turnout was fairly large, with Tripura recording 75 per cent and Nagaland 70 per cent. There was good response even in the interior and hilly areas. That is a healthy sign for Indian democracy and a lesson for those who want to disrupt the process through brute force. Even more people would have exercised their right if the fear of the gun was not there.

Getting VAT ready

THE value added tax, better known as VAT, is scheduled to be introduced in the States from April1, 2003. The introduction of VAT is an attempt to unify the different sales tax rates in the states, simplify the tax system, discard the plethora of taxes that have hampered growth and unnecessarily burdened the industry, leading to harassment of industrialists and traders. Multiple tax rates are not only confusing and irritating -- much to the advantage of tax lawyers -- they also lead to a lot of avoidable litigation and jack up the production cost of a product as also its price. The VAT system is expected to ensure that an overwhelming majority of the taxpayers, almost 90 per cent in Punjab, will have an opportunity of self-assessment. As in case of sales tax, there is no provision for the prosecution of a taxpayer unless some fraud or attempt at tax evasion is detected. More importantly, a uniform tax structure will present India as a single market to the manufacturer within as well as outside the country. Another advantage is that it will make the Indian industry more competitive in the emerging economic scenario. In simple terms, VAT means a tax levied at each stage of value addition to a product or service. Like sales tax, it is a state subject. Instead of having a single VAT at the national level, the various states are framing their own legislation. The Centre has already introduced its own value added tax called CENVAT under which a single excise rate of 16 per cent is charged.

In view of the fast approaching deadline of April 1, 2003, the states are busy making hectic preparations for the new tax regime, which on paper at least appears to be more transparent and industry friendly. Madhya Pradesh presented a “VAT-ready” budget on Monday. It introduced VAT at 12.5 per cent, the maximum limit, and expects an additional revenue of Rs 40 crore. Andhra Pradesh is also ready with its VAT. The Punjab Council of Ministers on Monday approved the draft VAT Act, 2003, which proposes 4 per cent tax on all industrial raw materials and 20 to 30 per cent tax on non-merit goods like liquor and lottery. It also has a provision for turnover tax at the rate of 1 per cent. Some have objected to certain clauses of the draft Act. A common worry of the states is that they would lose revenue heavily in the transit period and expect the Centre to bail them out. Otherwise, they say they would be forced to levy alternative taxes like entry tax and turnover tax, which Punjab has already introduced and which obviously defeat the purpose of VAT. On their part, the states have to exercise austerity and cut government expenditure to move towards a regime of lower taxation for faster growth.

FRANKLY SPEAKING

Challenges before new interlocutor
Need for bold politico-economic response
HARI JAISINGH

WITH the appointment of Mr N. N. Vohra, former Union Home and Defence Secretary, as the Centre’s interlocutor for initiating talks with the various groups in Jammu and Kashmir, political activity in the state will pick up considerably in the next few weeks. This is certainly a major initiative on the part of the BJP-led NDA Government to break the deadlock in the dialogue process resulting from the failures of the earlier efforts in this direction.

The question on everyone’s lips now is: Will Mr Vohra succeed where the others failed to break the ice? This is a million dollar question. Neither the mainstream politicians, nor the separatists, nor the common people dare hazard a guess. This is not because one doubts the credentials of the former Principal Secretary to ex-Prime Minister I.K. Gujral. But over the years the situation in Jammu and Kashmir has assumed alarming dimensions defying any settlement.

A number of initiatives were undertaken during the past 13 years to woo separatists and militant leaders with a view to winning the hearts of those who have been supporting the rebel groups, whether out of convenience or conviction.

Right at the start of the rise of militancy, a team of the then Opposition stalwarts, including Devi Lal, Rajiv Gandhi and others, visited Srinagar in early 1990 hoping for some miracle. They failed to achieve anything except causing embarrassment to the then Governor, Mr Jagmohan.

A couple of months later then Union Minister George Fernandes tried to fish in Kashmir’s troubled waters. He did not succeed, though he too created difficulties in the path of Mr Jagmohan.

Between 1994 and 1995 the late Rajesh Pilot toured several areas in Kashmir. On many occasions, he drew big groups of youth from whom he extracted assurances that they would help his peace efforts. It was later discovered that those youngsters wanted instant orders from Rajesh Pilot for telephone connections and for setting up PCOs. Pilot went on recommending cases for phone connections of all those who met him. The Chief General Manager and the General Manager, Telecommunication, were, however, forced to turn down Pilot’s recommendations since the telephone exchanges in Kashmir had no capacity to keep pace with the Minister’s orders. Those who were lucky got telephone connections. However, by the time Pilot realised his mistake, many Kashmiris had installed telephones in their business establishments and houses.

Yet another experiment was initiated by three prominent intellectuals, Mr Kuldip Nayar, Mr Rajindar Sachar and Mr Surinder Mohan. Nothing much is known about their success or lack of it, notwithstanding the fact that they interacted with different groups of separatists.

If anybody who has kept open his channels of secret interaction with the separatists and some rebel leaders for the past several years is Mr A.S. Dulat, a former RAW chief and at present OSD in the Prime Minister’s Office. His mission of roping in senior rebel leaders, however, had a limited success. Even his efforts to win over influential commanders of the Hizbul Mujahideen ended in a fiasco when Hizb chief commander Abdul Majid Dar had to face expulsion from his outfit on the charge of having declared a unilateral ceasefire, which lasted just eight days.

Interestingly, some senior separatist leaders admit that Mr Dulat is quite knowledgeable on Kashmir affairs. But after the Majid Dar episode he has been kept behind the scene while giving assistance to the interlocutors.

Ironically, when Mr Dulat was busy adjusting the pawns on his chessboard the Government of India appointed Mr K.C. Pant as its chief negotiator. The All-Party Hurriyat Conference (APHC) boycotted him. But Mr Shabir Ahmed Shah, head of the Democratic Freedom Party, met Mr Pant in Srinagar and Delhi a number of times and later he too maintained distance. The net result was that Mr Pant could not buy peace. He actually needed full-time attention. This was not possible because of his pressing commitments as Deputy Chairman of the Planning Commission.

Mr Pant had not yet opted out of the scene when Mr Ram Jethmalani’s Kashmir Committee got into action. Since the members’ credentials were well known, the APHC and other separatists willingly talked to them. However, several mainstream political leaders in Srinagar and Delhi had misgivings. The Jethmalani panel mainly concentrated on a dialogue with the APHC.

On August 15 last year Prime Minister Atal Behari Vajpayee spoke in favour of a dialogue. In Srinagar Mufti Mohammad Sayeed succeeded in dethroning the otherwise invulnerable National Conference in the Assembly poll on the slogan of settlement of the turmoil through “boli” and not “goli”.

The Central leaders held a series of meetings with the Mufti before the dice was cast in favour of Mr Vohra. He is expected to pick up the loose ends of the thread left by several committees in the past.

Mr Vohra is a seasoned person. He knows what is what and who carries what labels. He enjoys the confidence of Prime Minister Vajpayee and Deputy Prime Minister L.K. Advani. He has also full support of Chief Minister Mufti Mohammad Sayeed and other political leaders in the state.

It must be said that Mr Vohra has considerable understanding of the ground realities. Equally relevant is his clear perspective on Pakistan’s ISI in aiding and abetting the forces of terrorism in Jammu and Kashmir. He is familiar with geopolitical compulsions, especially American interests in the subcontinent.

Viewed in a larger perspective, certain pointers are crystal clear. One, time is running out for India to tackle the problem effectively and set the pace for a negotiated settlement with a view to bringing the various militant groups in the mainstream of national politics.

Two, India has to keep up the momentum for a dialogue with militants before the USA shifts its focus from President Saddam Hussein’s Iraq to Kashmir. Washington definitely wants “a reasonable settlement” of the Kashmir imbroglio since it has been a breeding ground for terrorism for the past one and a half decades.

Three, the Mufti as Chief Minister of the PDP-Congress alliance has generated considerable interest among various militant groups in the valley who now look for a peaceful settlement of the Kashmir problem.

In fact, the Mufti’s party had taken several militant groups along with it during its election campaign. His daughter, Ms Mehbooba Mufti, played a crucial role in creating a climate of optimism in Kashmir. Of course, one may or may not agree with all that the Chief Minister stands for, but he has to be taken seriously by the Centre and given adequate support to come to the grips of problems facing the state.

The gun, after all, cannot solve any problem in a democratic polity. Even the most complex problems have to be tackled through a meaningful dialogue. True, the past initiatives for peace have failed. But in the prevailing circumstances, the Central and state authorities have to work in total understanding and coordination to get the desired results.

Four, it needs to be acknowledged that Pakistan’s appeal in Jammu and Kashmir has declined, though its nuisance value continues. What happened at Kuala Lumpur during the NAM summit is yet another pointer to General Musharraf’s sick mind and his one-point obsession with Kashmir.

The situation is surely very dicey. There cannot be readymade answers to the problem. All the same, the dialogue must go on. This is what the USA and major powers expect from Indian leaders.

What, then, is the remedy. One simple answer will be: “Handle Pakistan militarily or through diplomacy.” Handling Islamabad militarily does not mean invading the neighbour. All the same, infiltration has to be stopped and operations on a massive scale need to be carried out against the rebels within the state. And New Delhi has to take steps to force the international community, especially the USA, to mount pressure on Islamabad to stop crossborder terrorism.

New Delhi’s consistent efforts in this direction have failed. Hence it is necessary to take special measures to make things hot for the militants. Once the rebels are tamed, separatists of different hues can be forced to withdraw to their cosy rooms.

The Mufti has set the ball rolling for a dialogue. But he has to be backed up with a lucrative economic package from the Centre. One cannot win over those who have tasted blood, or those who have made fortunes through the gun or grenade fire by mere assurance and hollow promises or by sermons.

Conditions must be created in Jammu and Kashmir to create job opportunities for the unemployed. The pace of development works needs to be accelerated so that common people reap the benefits. One must not expect hungry stomachs to sing praises either for the Mufti or for Mr Vajpayee.

Mufti Sayeed has been a strong votary for ending the people’s alienation. This cannot be done by able interlocutors alone. Everything has to be backed up by economic packages for the people.

And past experience has shown that even hardcore militants can be won over provided they are assured of suitable rehabilitation. But the successive state and Central governments have erred on this count. Several hundred militants had surrendered before the security forces during the past over 10 years. Most of them had been cooperating with the security forces which helped them to eliminate a large number of local militants and foreign mercenaries.

The first blunder Mr Farooq Abdullah’s National Conference government committed when it came to power in 1996 was to disown these renegade militants. True, they had started indulging in extortion and excesses but they should have been bridled and not disowned. The result was many renegade militants lost their lives and others were forced to rejoin the rebel outfits. If surrendered militants are suitably rehabilitated, this could encourage other rebels to lay down their arms.

Keeping these facts in view, Mr Vohra would do a big service to the people if he succeeds in resolving the conflict among those seeking greater autonomy and those aspiring for full integration of the state with the rest of the country.

Mr Vohra’s role will be appreciated if he is in a position to remove the people’s misgivings on regional disparities and recommend to the Centre a definite plan for pulling the state out of the economic morass it finds itself in. In this setting, the plight of Kashmiri Pandits cannot and must not be overlooked.

MIDDLE

Theatre shame
Roy Eagleton

“Did you see The Play?”

“But of course, where were you?”

“I was there — but I didn’t see you!”

“I was in the third row back. Did you enjoy it?”

“Well — Yes, it was okay, but what a dump!”

“I beg your pardon?”

“I said — What a dump.”

“It’s the best theatre in Chandigarh.”

“May all deities help The Theatre in Chandigarh — It was quite obscene!”

“I suppose it was somewhat approaching the avant garde, with all those sexy reminiscences and references to things considered unmentionable in polite society.”

“No, not the content of the play, I didn’t mean that. In that respect it was only fractionally way out and quite refreshing considering you can’t even mention bras and panties, cricketers, boxes or athletes jockstraps in ordinary conversation here, without inviting censure. I meant the Tagore Theatre is a dump — In fact it’s a bloody-awful dump.”

“Don’t swear.”

“That’s rich, after watching the play, bloody seems quite innocuous to me and if they can get away with that in Chandigarh then why should I bowdlerise my conversation.”

I suppose I could go on in that light-hearted vein, but really it is quite disgusting — Bloody disgusting in fact.

We waited some time to get in, the doors guarded by two charming girls who did well to keep a “gathering” of VIPs from charging the locked doors fearing that the front rows would be nobbled by the proletariat up the stairs. It was a bit like the RAH on a promenade night but quieter and less boisterous. “They’re letting them in up there,” somebody muttered. The door guards began a frantic drumming inviting the attention of those inside to the fact that the VIP doors had not been opened. Shortly afterwards they did. “Women and children first,” I cried, but was unable to practice what I preached, as I was carried forward by the surging tide of presumably lascivious humanity. (Some had obviously read about the play.)

Dear Chandigarh Administration people, go and have a look in the hard light of day and with the lights turned fully up. Sit in any row, but not for too long or you’ll get pins and needles in your a... (I’d better keep it slightly watered down). Then look down, beyond your feet. You’ll see a mess of accumulated dust, fluff and debris that clearly show that the place hasn’t been swept or vacuumed for yonks. Then look around at the walls — chipped and cracked. Look at the front of the state all pitted and scratched paintwork. Look at the curtains of the stage — seemingly about to fall from their runners due to the weight of dust and dirt they bear. Look at the floor of the stage and ask yourself. “Would I go barefoot on that, as the artists did?”

I only went from car to stairs to seat and back. I had no opportunity to see more. Perhaps fortunately nature didn’t call though I have no reason to believe that the loss are as bad as where I sat. I would think that an inspection of the “bowels” of the establishment would find a situation to blow the mind. It seems to me that the dirtiest, most unmentionable word in the Tagore Theatre’s repertoire is “maintenance”. Perhaps too much of their income goes to charity and they should start to let some of it, untaxed, stay at home.

IN THE NEWS

Difficult assignment for Urdu scholar

URDU critic Prof Gopi Chand Narang perhaps faces the most challenging assignment in his long career. As President of Sahitya Akademi, Prof Narang’s primary responsibility will be to enhance the richness of Indian language and literature by spreading its development. To be sure, his election to the helm at the Sahitya Akademi was preceded by controversy and mudslinging. For the record, Prof Narang defeated his more illustrious rival and Magasaysay and Jnanpeeth Award Winner Mahashweta Devi by 26 votes — a wide enough margin where the number of voters are less than a hundred.

Prof Narang, born in Dukki (now in Pakistan), is a name to reckon with in Urdu literature and written extensively on the subject. He has authored as many as 53 books, 12 of them in English and has contributed a substantial section on Modern Urdu Literature in Hindi Sahitya Ka Brihat Itihas.

An Honours Graduate in Persian and Urdu from Punjab University and Master’s and PhD from Delhi University, Prof Narang started his academic career as a Research Scholar in the Department of Urdu in the University of Delhi before moving to become a lecturer in the prestigious St. Stephen’s College. A post-doctoral degree holder in Acoustic Phonetics and Transformational Grammar from Indiana University, he was a Visiting Professor at the University of Wisconsin and the University of Minnesota.

He was awarded the Padma Shri. He is also a recipient of the President of Pakistan’s Special Gold Medal for distinguished scholarly work on the poet Iqbal.

Prof Narang has brushed aside the controversy preceding his election as the President of Sahitya Akademi. He has also donwplayed the accusations of political one-upmanship in his election. The margin of victory has belied the expectations of Ms Devi’s supporters but her comment that the voters’ list did not have the names of many writers is seen by many as more than a casual remark.

Prof Narang has to ensure that the internal bickerings at Rabindra Bhavan do not push the primary objective of the growth of Indian languages and literature into the background.

Lifetime award

For Keshub Mahindra, the 79-year old patriarch of the diversified business conglomerate, the Lifetime Achievement Award confered by the All India Management Association (AIMA) is not only individual recognition but also reflects the contribution of family-run businesses in the growth of Indian entrepreneurship.

Educated in Wharton at the University of Pennsylvania, Mr Mahindra has successfully presided over the one billion-dollar Mahindra and Mahindra (M&M) Group — one of the most respected business houses in India.

According to friends and peers, he is one of the few corporate titans in the country who have both witnessed and actively participated in India’s industrial transformation by spearheading the movement. His contemporary business leaders say that Mr Mahindra’s clear vision and astute business acumen and excellent leadership skills have earned him the enviable distinction of being a symbol of admiration and respect for over two generations of Indian entrepreneurs and managers.

Even today at the ripe age of 79, Mr Mahindra holds positions in various companies and has appointed by the Government of India to serve on a number of companies. He is a member of the Trade Advisory Council, the Board of Trade and the Indo-UK Technical Committee. He was earlier a member of the World Bank Group’s Private Sector Development Research Advisory Group and the International Finance Corporation.