The Tribune, Chandigarh, India

Power politics at play
Consumer pays the price

People in Punjab will pay 12 per cent more for power from April this year. The tariff hike was held up apparently because power regulator Romila Dubey did not want to spoil the Akali-BJP victory chances in the Municipal Corporation and Dasuya elections. Her explanation for the delay – the government did not commit to pay the power subsidy in time – is untenable. It would mean the state government and Punjab State Power Corporation Ltd can decide the timing of a tariff hike. The power corporation further served the ruling parties’ political goal by giving regular power to the poll-bound Dasuya.

There is a case for an increase in the electricity rates. The Planning Commission has said that the distribution companies have not been able to recover the cost of supply through tariffs. Various states have effected substantial tariff hikes in the recent days. The accumulated losses on account of power are very high in Uttarakhand, Jharkhand, Bihar, Uttar Pradesh and Madhya Pradesh. On the other hand, Punjab, Haryana and Himachal Pradesh have brought down the losses. Experts recommend linking the release of funds by the Finance Commission and the National Development Council to states to progress on power reforms. Lately the franchisee model of power distribution adopted in Bhiwandi in Maharashtra is highly recommended for adoption. It has helped bring down the transmission and distribution losses in Bhiwandi from 48 per cent in 2007 to 19.33 per cent now.

Given the political patronage and official connivance, power theft is rampant. Power utilities are run by non-professional, political appointees. In Punjab the situation has deteriorated due to the unmetered free supply of power to farmers and sections of the poor. Since the state does not pay the power subsidy in time, the power corporation’s financial condition has worsened and the debt burden has escalated. Since the unions have resisted retrenchment and reforms have been abandoned, the cost per employee is among the highest in Punjab. The burden of inefficient power management falls on the honest power consumer, who not only pays more but also does not get an assured supply.

Bored to death
Be sustainable with water, or perish

Emperor Akbar built the grand Fatehpur Sikri imperial complex near Agra in a unique mix of Persian and Indian architecture. However, he had to abandon it in 1585, shortly after its completion. Paucity of water was one of the primary reasons. It is today a splendid monument to both human endeavour and short-sightedness. Gurgaon may well be moving towards repeating that. Drive into the Millennium City, and you whizz past glitzy malls in a row. But open a tap at home, and chances are there will be no water. As the city struggles to meet its needs, it is drilling deeper and deeper into the ground to suck out water. Amidst reports that the city may run out of groundwater altogether in a decade, the Punjab and Haryana High Court has banned the use of this source for construction.

The city is founded entirely upon the aspirations of a rising young urban India, backed by the dream merchants called builders. The frenzied construction over the past two decades has depended largely on groundwater. Assuming the court order would be respected — there was a similar order last year too, but hardly implemented — most construction projects should come to a halt. It would be a good time for the government as much as the residents to ponder over water consumption levels, and ways to source it. As builders go on promising a 24x7 supply, the government is unable to launch its delivery plans. The NCR canal is taking forever to flow, as the water treatment plant it is to feed is not yet completed.

There has been a ban on unregistered tubewells in Gurgaon since 2001. That has not stopped thousands of new ones being bored each year. Built-up urban areas do not allow absorption of rainwater into the ground. The result is the groundwater level is dropping by more than 1m a year. Gurgaon — as much as any other city — has to learn to live off less water. Sustainable consumption would include rainwater harvesting, efficient use and prevention of leakages. For a mankind that can build the magnificent cities it does, comprehending this should not be very difficult.

Thought for the Day

The flower in the vase smiles, but no longer laughs. — Malcolm De Chazal

ARTICLE

India’s rending social fabric
Women’s issues not getting proper attention
by B.G. Verghese

Dr Ambedkar was right. If there was any long-term threat to national cohesion, none was more dangerous than the deeply embedded social contradictions in society, exemplified by but by no means confined to caste. These past few weeks have seen singular manifestations of this malaise in various parts of the country. Women, children, the handicapped, underprivileged and minorities are among the worst sufferers. But punishments, if any, seldom fit the crime.

There have been several cases of asault, rape and sexual harassment that have rendered many cities and regions unsafe for women. A privately run Apna Ghar shelter home inmates were raped and children sexually assaulted by its staff in Rohtak. A ghoulish murder of a starlet and her entire family has been unearthed in Igatpuri in Maharashtra. In Assam, a woman MLA was assaulted by goons for allegedly marrying a second time, allegedly without getting divorced from her fist husband. In Bengal, a sopposedly trans-sexual woman athlete was charged with rape and her medical exmination filmed and her private parts shown on TV. In Guwahati, a women coming out of a night club was set upon by goons, stripped and molested on the street and the incident was videographed and uploaded on Y-Tube causing widespread public outrage. In each case, some arrests have been made, investigations are in progress but exemplary punishment is awaited to scotch any sense of immunity or impunity.

Women’s issues have not been dealt with the earnestness they merit for fear of upsettng traditional values. Thus the utter disdain with which the constitutional directive to legislate a uniform civil code has been treated acoss the board by all parties. The Constitution does not mandate a UCC but urges the government “to endeavour” to introduce a uniform code. The reason this has not been enacted rests on an ancient shared lie across party lines that a UCC would be violative of personal laws which would stand abrogated were a uniform code to be introduced. This is pathetic nonsense. A unform code would be optional and would facilitate inter-faith marriage and help usher in a uniform and equal citizenship without prejudice to resort to personal law as a matter of choice. Goa has a UCC, a Portuguese legacy, and since marriage and divorce fall in the State List, it is open to any state to legislate a UCC. That insistent advocates of a UCC like the BJP have not done so testifies to their using this reform as no more than a stick with which to bait and beat Muslims. They are essentially opponents of the idea.

The reason a UCC has not been adopted, other than through the Special Marriage Act, is because male chauvinists do not wish property to pass into the hands of women who by marriage “migrate” to another family. Alas, all politial parties have been pusillanimous and womens’ rights groups supine. By blocking a uniform code, the state has only empowered bigoted religious heads to exploit their communities and rule the roost.

Women’s representation in legislatures can be easily and sensibly achieved by enhancing the strength of the House and electing the additional members by proportional representation under a list system with the stipulation that 20 or 30 per cent of of all party candidates must be women, half that number being on the list.

Another level of social breakdown was seen in Kolkata recently when a victim of an early morning train accident was brought to hospital and stitched after minor surgery by a ward boy. The hospital staff was changing shifts and therefore momentarily short of doctors! Was this a case of all hands on deck in an emergency or poor management? Many thought the latter as some Kolkata hospitals have earned a certain notoriety in recent times. Mamata Bannerjee’s Health Minister questioned the media’s right to probe the incident while the Chief Minister herself is so busy administering West Bengal from Writer’s Building that she could only attend 17 of 61days the State Assembly has sat since she assumed office.

Though khap panchayat decisions have been declared illegal by the Supreme Court, these medieval bodies continue to lay down the law. A village panchayat in Baghpat in UP, near Delhi, has banned love marriages and women below 40 going to the market or using mobile phones outside their homes. Partners of love marriages are to be banned from living in the village. The police and National Commission for Women are seized of the matter. This is all right. But unless condign punishment follows, such feudal practices will contiune. There has been endless pussy-footing on such events which has only encouraged offenders to continue in their unregenerate ways. That khaps are age-old institutions cannot shield them from downright illegal and unconstitutional conduct.

That caste is well and flourishing was again reflected last week in the swearing in of the new Karnataka Cabinet under Jagdish Shettar, the thrid Chief Minister since the BJP assumed office. The ministry has two Deputy Chief Ministers so that all three major castes —Lingayat, Vokkaliga and Kuruba — are represented at the top. Other parties too balance caste. Competence and commitment to mandated programmes are unimportant. The Governor too has had no compunction in publicly critisising the Chief Minister for appointing “tainted ministers” against his advice. What is going on?

In the past few weeks several toddlers have fallen into open manholes, dug wells and drains left as roadside traps for unwary children. Some have drowned leaving behind parents and relatives traumatised by civic neglect. Responsibility should not just be fixed at the lowest level and punishments should be condign. They are not so.

In Bihar, today an educationally backward state, two Central Universities are to be set up in place of one on the Chief Minister’s insistence that Motihari should be selected on account of its backwardness whereas the Centre preferred Gaya in view of its better infrastructure. The allocated expenditure will now have to be equally divided to create two sub-standard universities. Who gains?An audit investigation of the Bihar Governor’s secretariat reportedly finds the Governor has abused his position and appointed an “ineligible” person as vice-chancellor of a certain university. These are shameful developments and betray many adverse trends: poor selection of Governors, impunity, immunity.

The Naresh Chandra panel has reported on a broad spectrum of defence and national security reforms. When will this be published and acted upon? This is the nth commiitte on this supremely important topic and should not meet the same fate as its predecessors – being swept under the carpet until overtaken by events. The matter is too important to be shelved or acted upon incrementally and should be speedily implemented with bipartisan cooperation which will surely be forthcoming. There is no need to await fresh elections and a new government. Please let not national defence be made a political football.

MIDDLE

For a glimpse of Dara Singh
by Mohammad Imtiaz

IN Malerkotla, a small town of Punjab, everybody was shuttling between hope and uncertainty. Huge crowds were drawn to the stadium with people anxious to get a chance to see world-famous wrestler and Bollywood actor Dara Singh in person.

The moment came and eyes got widened in joyous wonder to see chief guest Dara Singh coming on the stage. The occasion was a “dangal” for the Rustam-e-Hind title between two biggest wrestlers of the country — one from Punjab and the other from Delhi.

Before the title clash began other matches were going on. But the people were more eager to get a glimpse of the yesteryear champion. Many, using their connections in the organising club, started taking photographs with him and with world champion Kartar Singh, who was also sitting beside him. With the help of my uncle, I too got a chance for a photograph.

Dara’s huge persona was leaving a mesmerising effect with a smile on his face. The grey-haired veteran was appearing much younger in a red shirt and black jeans. He was not looking the least bothered about people coming and sitting beside his chair in a frank manner. He even did not forget to pat the back of a single wrestler coming on the dais to touch his feet after finishing every match.

On the request of the organisers, he also took a round of the stadium to cheer the spectators. Mood in the air got joyful and there was no halt to applauses. In a few words of his speech, he wished if he would have been young to show some tactics of the game to his fans.

The final match ended in a controversy. Amid clashes, Dara Singh tried to move away silently, rolling a white “lohi” around his shoulders. Suddenly, the organisers noticed their mistake and rushed towards his car to persuade him to come back. They honoured him with mementoes and other gifts before seeing him off.

For many days, the effect of their hero’s visit was obvious in people’s talks.

Being in teen-age, I also felt an urge to imitate him. Soon I realised that the desired result lies in years of hard work, not in following the dress or style.

OPED — DEVELOPMENT

Land Bill: Lawmakers leave out loopholes
The parliamentary committee’s report on land acquisition advocates unnecessarily harsh measures and yet fails to fully protect the interests of farmers and the agriculture sector at large
Ram Singh

Land must be used efficiently — fertile land for cultivation and less productive for other activities — Thinkstockphotos/Getty images

THE Parliamentary Standing Committee (PSC) on Rural Development has submitted its report on the Land Acquisition, Rehabilitation and Resettlement Bill (LARR). The report provides credible criticism of the Bill, especially for allowing land acquisition for private companies and all sorts of activities. Besides, the report makes the following laudable recommendations: narrowing of the scope of acquisition under the guise of ‘public purpose’ and ‘infrastructure’; an active role for local bodies in the preparation and implementation of a relief and rehabilitation package; and bringing under LARR all of 16 Central Acts that cover various aspects of the land acquisition law.

Misuse of PPPs

Nonetheless, the report has several shortcomings. It confuses the public-private-partnerships (PPPs) with private companies, and recommends an absolute ban on land acquisition for both. PPPs are quite different from companies. Moreover, the range of PPPs is wide which varies greatly in terms of funding and ownership structures.

Some PPPs are indeed formed to acquire land for companies under the guise of public good such as infrastructure. The Yamuna Expressway and the multi-product Special Economic Zones are examples of such partnerships. Real-estate considerations are the main force behind such ventures. So land acquisition for such PPPs is problematic.

However, PPPs are also formed to consciously attract private funding for truly public interest projects – for example, PPPs on national highways. These PPPs have no real-estate component, and do not create private ownership on any kind – only limited period revenue rights are granted to the investors. It is a mistake to ban acquisition for such PPPs. Land acquisition should be allowed for privately funded projects, provided the project is for a genuine public good, has no real-estate component, and does not create private ownership.

Manipulation of the law

Its extreme stance notwithstanding, the report fails to recognise several loopholes in the Bill. In the past, the states have resorted to following manipulations of the law: acquisition of land citing some public-purpose but covertly diverting it to essentially private ends; adoption of pick-and-choose methods for selecting project sites; and the use of the de-notification clause to exempt land belonging to the powerful but simultaneously acquiring all neighbouring properties.

States can engage in similar practices under the proposed law as well. Clause 93 of the Bill permits changes in the use of the acquired land; original purpose can be changed to a ‘related one’. Clauses 94 and 96 allow the transfer of the acquired land to private entities for a consideration as long as a fraction the resulting profit is shared with the original land owners.

Furthermore, Clause 87 allows for mid-way de-notification as well! The report does not take note of these provisions. Moreover, going by media reports, the government has no intention to rule out land acquisition for companies. So the risk that some of the past abuses of the law will continue is real.

Moreover, the vicious cycle of litigation and the resulting wastage of private and public resources seem to have gone unnoticed in the report. The excessive litigation over compensation under the existing law is due to the fact that the land acquisition collectors (LACs) and courts use a different basis for determining compensation – generally, LACs use circle-rates but courts tend to use relatively high-value sale-deeds.

The Bill proposes substitution of the ADJ court with the ‘Land Acquisition Rehabilitation and Resettlement Authority’ to adjudicate disputes over compensation. All that the report does is insist on the use of highest value sale-deeds as the basis for determining compensation.

Incentives to litigate

If anything, litigation is likely to intensify further. The existing law provides for compensation, including solatium equal to 1.3 times the market value of the property. The proposed law increases it to four times for the rural areas; and two times the market value for the urban areas.

Now, consider an agriculture land measuring just 100 square metres. Suppose, an LAC uses a circle-rate of say Rs 1,000 per-sq-metre for determining compensation, and the court uses a sale-deed rate of say Rs 1,400. Under the extant law, since the multiplier is 1.3, the total compensation will go up by Rs 42,000. By comparison, under the proposed law since the multiplier is four, the compensation will increase by Rs. 1,60,000! That is, gains from litigation will be much greater under the proposed law, given the proclivity of the LACs and courts to use a different basis. The gains and, therefore, the incentive to litigate increases further as the land size and/or the difference between sale-deeds and circle rates goes up.

In order to mitigate this problem, it is important that the initial compensation itself is determined by using all relevant information such as records of sale-deeds, land-type, its future value, etc. More importantly, all this information should be provided to the compensation determining authority and should be shared with the affected parties before an award is made. Moreover, the LARR Authority should be made independent and representative.

The writer is a Commonwealth Fellow, London School of Economics

Land regulation still a muddy state issue

THE Parliamentary Standing Committee on Rural Development has made some important recommendations which can be summarised thus: a drastic reduction in the scope of compulsory land acquisition; to ensure food security, an upper limit on acquisition of all cultivable land; and, protection of the domain of the states under the federal structure of the Indian polity. The PSC report is against a Central law on the limit on acquisition of agriculture land, relief and rehabilitation etc. as these belong to the state domain. The recommendations are highly desirable. However, the political economy of land use poses a serious challenge to the realisation of these objectives. The report seems to be oblivious of this fact.

Efficient use of land

Demand for land from non-agriculture sectors is bound to increase. For over-all development and to eradicate poverty, non-agriculture sectors, especially manufacturing, need to grow to employ a larger fraction of the population.

Therefore, for the restriction on compulsory acquisition to be practicable, voluntary land transactions for industrial and developmental projects need to be facilitated. Given the scarcity of land, concern over food security is also genuine. So land must be used efficiently — fertile land for cultivation and less productive for other activities.

The greatest threat to these aims —voluntary land transactions and food security — comes from the change-in-land-use (CLU) and other regulations on the use of agriculture land for other purposes. The formal and informal (kickback) costs of these regulations are said to be significant. Unsurprisingly, these costs preclude a large number of potentially desirable voluntary land transactions, threatening the realisation of the first goal. Besides, they put heavy downward pressure on the price of agriculture land, thereby affecting the distribution of surplus among farmers.

Threat to food security

The regulations threaten food security as well. To see how, remember that the limits proposed by LARR and the report apply only to the compulsory acquisition of agriculture land – not to the indirect transfer of agriculture land to other activities by using these regulations. Moreover, these regulations make no distinction between fertile and unfertile lands. So, not only agriculture land itself but any amount of fertile and multi-crop land can be transferred indirectly to other sectors without violating the proposed limits!

Things can be much better if the devious CLU and other regulations are replaced with transparent, objective and ex-ante zones. Different zones can be set up for different activities. Plausibly, all of multi-crop and irrigated land should fall in the agriculture zone, allowing only agriculture and related activities. For this zone there can be no acquisition save for linear infrastructure projects like roads and railways. Industrial, commercial and the mixed-use zones can be set up on less fertile land. As long as the land is used for the permitted purposes, the state should have no role in further governing land transactions.

High transaction costs

The transaction cost of direct purchases can be reduced greatly by making ownerships and land-type records clear and verifiable. The poor records and resulting disputes have held back the development of land markets. Besides, vague land titles cannot serve as collaterals.

Consequently, farmers’ access to bank credit and the overall development are also hampered. Land records need to be updated, digitalised and made available publicly for owners, potential buyers and courts for verification. Collective bargaining and ‘contingent contracts’ also can reduce transaction costs.

However, agriculture land, its usage and contracting are all on the State List. Therefore, the initiatives can be undertaken only by the states. The problem is that decision-makers in state governments do not have any incentive to reform the land regulation framework, as it would dilute their power of rent-seeking. The issue requires serious thinking. The PSC and other such entities can play a crucial role in building a consensus. — Ram Singh