Emerging Kerala need to empower Panchayats

If Kerala has to emerge, it needs to empower Panchayati Raj without spending Rs 1/- from its exchequer? Kerala had emerged as a Trading post, 2000 years ago when Arabs, Egyptians, Mesopotamians, Chinese and many well trenched economies before Christ sent their dhows and boats to this Coast in search of various products like pepper, spices, ginger, herbs, etc paying in gold coins which has been unearthed from time to time from ancient historical ports of the past and the overstretched hinterland. Emerging Kerala inaugurated by Indian Prime Minister on 12 September was to hearld the born again covenant of kerala’s trade Past to a New Age future of industrial economic growth. It appears that the present day bureaucrats, who were in charge of a movement, forgot Kerala’s history when they planned Emerging Kerala which has already emerged, evolved and endured as a State where retail trade was their economy! Kerala is one state where retailing thrives. There are no industries; hence, there is no industrial economy. FACT, Shipyard and Naval Base and Refineries cannot be catalogued as industrial development projects for spin-off economic growth. The infrastructure project, Cochin port which is worth the entire jewellery sold in India for a year or more as its wealth is inexhaustible, remains lusterless as Tuticorin port formed in 1985 has overtaken Cochin port by miles. We have in our possession, the Jewel in the Crown in the form of Cochin port. It is mainly a Port that caters to import rather than to export. Its marketing prowess is limited. Kerala and its hinterland is not export centric. Has Government thought any plans to boost its revenue so that allied services and economy of service sectors will grow in leaps and bounds? We have no Plan at all to develop Cochin port. Every ambition of Sir Robert Bristow, who is the architect of Cochin port(read Cochin Saga), has been thrown to the Vembanad waters, thereby the Queen of the Arabian Sea remains an old damsel having lost her charm The dilapidated and uncared Vathurthy and vendurthy bridges are typical examples of this neglect. The reclamation in Ernakulam which submerged lands to the extent of miles, which raked for GCDA Crores of Rupees made Arabian Sea furious and she in turn grabbed many miles of inland land from Fort Kochi to Veli and much more. Nobody has bothered about the coastal erosion which is systematically taking place submerging precious lands. Sir Robert Bristow had cautioned that any activity on the peripherals of the Cochin bay will cause tidal uprising. But who reads history when everybody wants a role in history making? And along with that the notional loss on submerged land! Kerala is a land of literacy. It has a developmental model not created by any Economist, but emerged on its own. There was no need for any catalyst to design a model, because it was sayambu. Educational institutions and educational facilities provided in the state helped the people to be top brats who with their immaculate knowledge could be the bench mark of perfection. This attitude came up from dependence of these educated people with other people, as no opportunity is available for these great brains here. Keralian is everywhere with his superior intellect, excellent mannerisms, hard work, except in Kerala! Don’t blame Kerala or its education or its Politics for it. It is a trait, a grit that came from nothing from hard work. Treated worse than David Copperfield, these destitute need care, and protection. When no body offered, they became anti thesis of exemplary work. That agitation resulted in Attimari, Nokkukuli, etc. Kerala workers are the best, intelligent, hard working lot. They work as long as they are wanted to finish the work. They work independently. They do not need a supervisor to guide them. Their fertile imagination is better than that of his supervisor. These are hall mark of greatness. But you don’t see them, anywhere in Kerala, and on account of this, there was no economic or industrial development. The money order economy and remittance to Banks made many Managers to get elevated posts. It was not because of their ability. It was because the hard working expatriate send his money to these banks, and they transferred this sum to the neighbouring states of their bank’s branches so that those states prospered in leaps and bounds with kerala remittance money. Every application received from an entrepreneur was consigned to a closed file with the remark” technically not feasible, nor economically viable. Units of similar category have become Non performing Assets. Hence reject”. Period. Now, with the Emerging Kerala revolution already on, industries are pouring into Kerala. It is a good sign. That a Government at least makes a symbolic gesture to publicise its strong points. THE embassies were represented by the respective Ambassadors. There emerged lot of opinions. Comments. Desires. Some people refined their thoughts. Many decided that it was a new dawn. A new era. New Kerala emerging. Banquet of opportunities. Global connect with Kerala. Is Emerging Kerala, a meet designed to engage in business carriage vis-à-vis entre nous? And how does B2G (Business-to-Government) terminology though euphonious fit in inter alia B2B (Business-to-Business) meet? KSIDC says it has received 140 proposals at B2G meet. Investment and starting of industries, bringing capital, introducing new technology etc cannot in any context be defined as Doing Business with Government. What Government is doing is one of its charters- ushering in industrial growth by publicizing Kerala’s assets. It is not Business to Government, as vouched by the KSIDC spokesman! Just as they discuss any issue, the newspaper fraternity found many areas to criticize. The opposition boycotted the function. Many others who always had a dominant role in extolling the ‘doom’ theory just propelled it. There was controversy over Trade mark of the event. Plagiarism. In the summing up Press Conference, CM said one figure while Industries minister gave another figure while the Government Press note gave a third figure. Now, there are many, who are asking this question, “Who choose the event Partners?” Day in and day out, our indigenous Chambers of commerce is breathing fire- suggesting various bits and pieces on industrialization? Why were they ignored? What is CII to Kerala? NASSCOM is a specialized body, whose services we do not require, because we have a country cousin of that organization in our own Techno Park. We are waiting for the arrival of which industries? What is our menu? We can plan for setting up of industries. But that cannot be at the cost of depriving patches of agricultural lands, as commented by one Planning Lord, because Malthusian theory will operate and is already operating in kerala. The Meet discusses projects having colossal costs, educational institutes of excellence, tourism, infrastructure, metro rail etc. When Vallarpadam Transshipment Container terminal is finding it difficult to put its foot properly with asking amendment to Cabbotage Law and with emerging strong competition from Colombo and Singapore, who are strongly entrenched hub Ports, would Vizhigam Transshipment Container make a viable story.? Adventure, eco, holistic sports and parks have economic sparks. But will they sparkle? Kerala’s Roads, especially Ernakulam roads, Broadway which is the narrowest way was a broad road by existing standards then. 70 feet Mahatma Gandhi road otherwise MG Road was another. When Roads with narrow footpath and crowded commercial shops dotting both the sides, where can one acquire land? It is high time, satellite towns, with all pharafernia need to be created where modern gadgets and modern hi-fi form of transportation can be developed so that it will take congestion off present day Ernakulam. Caveat that new buildings can come up only in the satellite town and counter magnet Cities adjoining Ernakulam having the highest facilities. Housing has come up in the most haphazard way, and has been unplanned, the causality being the civic amenities. Electricity and Water, the two essentials planning has gone awry, because of uneven growth. Planning of industrial parks, which are neither Greenfield, nor dedicated, has created denial of the common facilities to the most of the units. KINFRA had a very queer agenda of industrial growth- its planning and location of industries needed a higher proficiency in terms of planning and locational advantages. Setting of the First Apparel Park in Trivandrum instead of at kannur was a Himalayan blunder. It was disclosed that in the Emerging Kerala meet projects worth 10 K Cr was mooted to come up in Ernakulam, Kollam 3K Cr, Trivandrum, Kasargode, Malapuram 2 K Cr and Kozhikode 1 K Crwhile Alapuzha 0.5K Cr), Kottayam (0.12 K Cr), Wayanad(0.15 K Cr), Kannur 0.03 K Cr), while Thrissur, Palakkad, Idukki, Pathanamthitta meager offering. Government talks in terms of Kochi-Palakkad corridor when enough interest has not been shown by the investors in a congruous manner. If this promised investment pours in, it is most welcome as it will re-draw Kerala’s industrial landscape. Kerala’s industrial Policy is staid. It has a discontinuous programme which does not take off from one Policy to the next because of distortion, inequality and proper allocation. Kerala does not have an Export Policy, even though from time of history, Kerala was a mercantile trade spot. The sea trade brought Kerala Gold, and almost all powers of the trading world then had succeeded in developing ties with Kerala. It was a harmonious relationship lasting at least 2500 years. Spices, black pepper, cinnamon, ivory, were all Kerala’s Unique selling Preposiition. The New Age brought afresh wave of European traders for spices, cashew, marine products, coir, coconuts, tea, coffee, etc. Today, a bunch of Commodity Boards, wayward and isolated as they are, have been able to notch up little improvement in trade, commerce, export without the support of the Kerala Government which has no proficiency in exports. There was a body called KERAXIL. It got the boot. KINFRA is supposed to be the nodal agency for ASIDE Scheme, and ask them their contribution to exports? . The Policy makers have not fulfilled the aspirations of the Policy seekers by going for export options of the existing products and going in for new products. Creating the right infrastructure, right climate with expedious clearance. In today’s situation of the manufacture of motor car industry, automobile spareparts industry is growing at around 40%. Replacement Parts market manufacture can be ideal for Kerala. Textiles with a rough Rs 12,000 cr retail, is there not scope for lady tailor’s co-operatives. In Kerala, one does not even manufacture a hand kerchief, Tie, blouse piece on a mass level. Then needless to say, we do not grab the chances that our neighbour states do to attract funds. Let us experiment with each district or Parliamentary constituency taking it as one unit. We have a Member of Parliament. He has a fund to develop his constituency on an annual basis. There are MLAs representing the different bifurcated Constituencies under Parliamentary constituencies. They have been granted funds for development. Let them group as one unit, with District Collector as Convenor and Panchayat President as Joint Convenor. Let this body forget Politics in this body. Decide on the Sector Plans of the Constituency. Alleppey has coir industry; Kannur has Handloom industry; Aroor has fisheries industry; Kollam has Cashew industry; Idukki has tea estates; spices are pre-dominent in Wayanad, Rubber is the forerunner in Kottayam, etc. The MPs and MLAs will ear-mark a percentage of their development quota as allotment to this corpus. With a well written Scheme after discussing with the stake-holders, go to Delhi and apply for Rs 50 Cr Industrial Infrastructure Up gradation Scheme of the Commerce & Industry ministry, Department of Industry. Micro Small and Medium Enterprises has a Scheme known as MSE-Cluster Development programme with Rs 10 Cr as outlay; Ministry of Rural development has also a scheme known as Swarna Jayanthi Grameen Rozgar Yojana (for Rural development). If we plan and design 6 projects under various Schemes, a corpus of Rs 100 Cr will be available, with the state Government investing nothing. No allotment is required for the Panchayat from the state budget. Panchayat need not even such from revenue avenues for doing these projects. Even Waste disposal project can be undertaken. Six projects worth Rs 100 Cr in a constituency, 20 constituencies can project 20x6= 120 projects; 20x100= 2000 Cr (over a dozen year period), employment, each project 100 direct, 100 in-direct. 24,000 direct/indirect employments. Why not we start. Somewhere, something has to begin. We have Rajya Sabha MPs as well including its Dy Chairman and No 2 in the Indian Cabinet from Kerala. They can make Kerala’s dream to emerge in an industrial Kerala. (Kerala’s Panchayathiraj Plan) If we have to emerge, we have to Endeavour, empower, and evolve. Only then, we can merge the present Kerala with a new Kerala and emerge as a Land of new opportunity. Kerala is on the move. -o-o-o-o-o-o-

Miles to Go before We sleep

Congress seems to be like humpty dumpty. They seem to be living in a blunder land. Except that the Opposition is in tethers, there is nothing positive about the UPA Coalition which is slowly drowning. Even a massive transplant cannot save India’s grand old party. The party seems to have lost its glow. Its magic wand. Midas touch. It is groping in the dark, and before long, will end up with past legacy. It is a repeat story of mistakes, one after another, due to lack of sagacity, political maturity, and pragmatic realism and brinkmanship. It has many votaries who imagine them to be its spokesmen. But they babble in lot of drab, littering the political landscape with their blunders and howlers. They speak to bring disgrace to the Organization, they represent. All of them have the foot-in-the-mouth disease. Congress party cannot live without power, is accustomed to pampering, which eludes the party from reflecting on its errors and introspection on its failures. The Party does not have intellectual leaders, men on the hour to catch the finest hour, who can call a Spade a spade, and yet win over people for their honesty, sincerity, and humility. Reasoning is not congressman’s forte. It does not dawn on him that he is slowly ebbing out of the mind of the average Indian. The party is in its stupor. It is the indecision that is the hall mark of its working; but when pilloried and blackmailed, takes high voltage decision which aggravates the problem and eludes the solution for which it was taken with hesitation. This happened in the case of Anna Hazare. In the 2G scam. FDI in Retail. When the Prime minister of India stakes his prestige and signs the Nuclear Deal with America, despite the Left who were staunch supporters of UPA opposing the deal tooth and nail, he underscores the need for nuclear energy to solve India’s perennial power problem. Yet, in another breadth, he is candid that United States is trying to sabotage India’s nuclear programme by funding NGOs to spearhead an anti nuclear programme movement in Tamilnadu. Does it mean, US supports India with supply of nuclear energy equipments but opposes India’s dealing with Russia as the fast breeder reactor is from Russia in Tamilnadu? Why did the protestors wait till end of the construction of the plant to start its stir? Sharad Pawar, talks of farmers’ woes when he argues for continuation of Cotton export shipment. He is categorical that such a move would harm the farmer. Cotton exports have exceeded its target of 84 lakh bales by an additional10 lakh bales. Cotton is already in shortage for conversion into value added products. The same Agricultural Minister is happy to import uncontrolled quantity of edible oil, even though it critically affects the homegrown edible oil, solvent extraction domestic industry and oil seed farmers! Mamata may not be happy with the signing of river water treaty with Bangladesh, but her opposition to the UPA of which she is an inseparable part is astounding. Jayalalita’s rouse against the Centre is political. Modi’s anger comes out of the Congresses blatant accusation that he is a villan instead of a hero. Nitesh Kumar, Biju Panaik, and other states ruled by the Opposition cry hoarse against the centre for lack of patronizing them. There is merit in their accusations. But, all states should be taken as equals, and Centre is nothing but a Union of States. It should blend the resources equally to be divided amongst states so that they will beget revenue to embark on economization. Progress must be uniform and over spreading to the near by state from the metropolis. Hosur takes the advantage of Bangalore, while Kasargod is supported by Mangalore. Noida gets the support of Delhi. Government does not have political colour even though the Party that has gained the majority forms the government. Government policies and party politics are divided by oceans, though the waves may flow to and fro the beaches. Congress needs to re-invent. Instead of being passive to the issues, it must be proactive to draw solutions anticipating issues. Both the ruling dispensation and the Opposition can criticize one proposal or policy, if they can point out a viable alternative proposal. Blind opposition will not do the country any good. Today’s Congress leaders do not see the sunshine of tomorrow, but believes that the dusk has come, to postpone its problem to the next day. This is a wrong attitude, please.

Kingfisher:Govt's dog in the manger policy

Is the inactiveness of the Government to save the private airline industry due to the fact that in a free trade regime nothing is free? If you want to do business, it is your business, and government has no business to bail you out, if you have problems. What would happen to its impact on the economy, if kingfisher airlines were to shut stop. Airline group chief and billionaire business tycoon, Vijay Mallya is struggling to keep India’s Kingfisher Airlines afloat due to surging fuel costs and fuel taxes. In the past week, the Bangalore-based carrier has cancelled 200 flights in hopes to reduce its debt from Rs. 6,500 crore (about $1.4 billion) to Rs. 3,000 crore ($600 million). Kingfisher has suffered a loss of Rs.1027 crores ($200 million) in the past fiscal year, adding to its mounting debt. Malaya’s friends in the Industry especially a top industrialist like Rahul Bajaj, wants nothing of it saying the vows of the industrialists are his own, and there can be no intervention. People of the ilk like Rahul Bajaj were the beneficiaries of the license era when they capitalized on the monopoly of two wheeler segment. When globalization set in, Hamara Bajaj became one among the two wheeler segment. What are CII and FICCI doing to assist the friendly airline to come out of the woods? There are captains in the capitalist industries who control India’s industrial economy? They do not bother about the loss of jobs, money going bad as investment would go bad, banks’ debt would remain unpaid, goods and services will suffer, the airline’s closure will affect the flight schedules. There will be overall economic effect which would be disastrous start to the XII Five Year Plan. Aviation sector will remain in chaos. With the national airline, Indian, already in the red, the future of the aviation industry looks to be grim and dim. Kingfisher’s plea for government help and the ailing state of India’s ailing aviation industry has raised some questions why the government still has not lifted its ban on foreign airline investment in India. While recent reports suggest that the government has been considering a plan to open up the aviation market, at present foreign institutional investors are allowed to acquire up to 49% in Indian carriers but foreign airlines are banned from investing directly or indirectly in domestic carriers. Kingfisher has been in favor of lifting the foreign investment ban, while Jet Airways has opposed to it. According to the Associated Chambers of Commerce and Industry of India, allowing foreign direct investment is key in helping the aviation sector, along with cutting fuel taxes and lowering airport charges. With the exception of IndiGo, India airline carriers on the whole seems to be taking a hit. Jet Airways reported a loss of $158 million for the quarter ending September. The airline attributed the loss to high fuel and currency devaluation. Spice Jet also reported a Rs 240 crore (approx $48 million) net loss. The Centre for Asia Pacific Aviation (CAPA) forecasts that the industry needs about $2.5 billion of new cash to maintain operations, including $1.32 billion for the state-owned Air India airlines. Now the airline is seeking a government bailout while members on the Kingfisher board are meeting to explore ways out of their financial turmoil, including a proposal to sell more than half its property. Opposition parties in India, including the Bharatiya Janata Party (BJP), strongly oppose a government bailout package to help the cash-strapped airline. Government is unable to do anything to save Kingfisher. In the meanwhile, Income Tax department, Service Tax department, etc have applied Garnishee orders in the a/cs of Kingfisher in various Banks. Salaries for staff have not been paid. Oil Companies are demanding payment of their dues threatening to stop supplies. The airports are demanding payment of landing and take off charges. In the meanwhile, consortium of Banks has declared Kingfishers’ accounts as Non Performing Assets. Kingfisher is choked from all sides, and government’s punitive action is going to dry out the little Oxygen that is available with the airline to come out of the woods. Government escorted Nedungadi Bank out of death by amalgamating it with Punjab national Bank. Any asset if it is turning useless, we need to provide bail-outs and not take punitive action to scuttle its hold ups even in precarious situation. One suggestion is offered. We have Foreign Exchange Reserves to the tune of $ 300 billion. Half of it is invested in debt bonds and government backed securities begetting meager returns. Why not keep a reserve of $ 30 billion, and provide it on demand to the Indian industry instead of asking them to seek External Commercial Borrowings. Money from this Revolving fund can be lent to commercial enterprises like Kingfisher to bail it out, and in the process of doing so, these idle funds would redeem better interests advantageous to the Indian economy. This does not require any political debate, but the amount of good it can do cannot be quantified. But, who would come to the rescue of Kingfisher in its dire need? The “King of Good Times” is facing some grim times at the moment. But the King in the form of Government is sitting in stoic silence thanks to the precarious political situation of their making?

Can Corruption be prevented?

Did you forget Anna Hazare and his fight against corruption which brought fresh air in the polluted political stage of India? Every Political party in India saw to it that the movement died prematurely otherwise, it would grow to monstrous proportions to devour them. But the movement is still evergreen as the People’s tirade against the corrupt polity! Hon’ble Shri Santhosh Hegde, Retd Judge of the Supreme Court, eminent jurist, a leading Advocate, erudite scholar of law, and son of Shri K S Hegde, who was one of the Judges superseded by Mrs Indira Gandhi on 25 April 1973 and appointed Hon’ble Shri Ajit Nath Rai, as Chief Justice of India and Shri KS Hedge (father) chose to resign. He became Speaker of the Lok Sabha during 1977-80. Shri Santhosh Hegde was the Lokayukta of Karnataka who took up some sensational corruption cases. His Report about sequence of corrupt cases included that of Shri B S Yedurappa, who was the then Chief Minister of Karnataka. In a massive report submitted to Governor H R Bharadwaj, Shri Santhosh Hegde, named the BSY as a guilty party having favoured South West Mining Ltd for which he is supposed to have made pecuniary gain through the Education Trust founded by his immediate family and selling own lands to the mining company far higher than the market price. This, the Lokayukta concluded prima facie proved the nexus, and quid pro quo for granting the mining deal in lieu of payment of money which has been received by the kith and kin of the former Chief Minister. This, the Hon’ be Lokayuta concluded was tantamount to misuse of office, hence recommended criminal proceedings against Yedurappa under the Prevention of Coruption Act. The Governor, to whom the Report was submitted, gave permission for prosecution of BSY under PCAct. Shri Yedurappa, filed a writ in the High Court stating that the First Information Report filed against him in the Lokayukta Court was faulty, as it was based on Governor’s sanction which was linked to the Lokayukta’s Report submitted to the Governor by Hon’ble Shri Santhosh Hegde, a legal luminary, who had gone elaborately on the sum and substance of the allegation and collected materials which should have had legal scrutiny. The High Court quashed the FIR, and held the sanction of Governor untenable and unlawful and the report which failed to seek the response of the then Chief Minister Shri Yedurappa. Hence it is tainted with constitutional inadequacy, and principles of natural justice were a casualty. Justice Santhosh Hegde should have known better; a report of Lokayukta, judicial body, should have no bias. Yet, the Report was quashed. Now, the question, the civil society raised on the corruption at high places, who is responsible for action being vitiated? Another Retired Judge of the Supreme Court, Fathima Beevi, appointed Smt Jayalalitha as Chief Minister of Tamilnadu when she was the Governor. Supreme Court held that her decision to appoint Smt Jayalalitha did not have constitutional sanction. Now, did the former Judges of the Supreme Court err? All noise about the involvement of B S Yedurappa in the mining scam based on the report of Lokayukta now remains quashed by the High Court of Karnataka which has appeal jurisdiction. Now, will an appeal be preferred in the Supreme Court? The Karnataka State Government may not do so. Can some private individual under the Public Interest Litigation route file a petition in the Supreme Court against the divisional bench’s order exonerating Yedurappa on technical grounds? Can one assume locus standii as a Public citizen, as did Shri V S Achuthanadan in the Balakrishna Pillai case when state failed to prefer an appeal against the High Court order exonerating him, and the Supreme Court held that VS Achuthanadan had the locus standii to file the appeal as a citizen!

Can Coir industry stand on its own feet?

Has Coir industry found its feet? Coir industry is Kerala’s poor man’s industry, a legacy of the British, where women outnumbered men in doing jobs that saw Coconut fibre turn into lively brown, which was taunted as God’s Own Country’s traditional industry. The first spinning wheel perfected by the Englishmen, started defibering coconut fibres to coir yarn in 1857 when, elsewhere, Indian soldiers started showing dissidence to their superiors and this unrest was called the First War of Indian independence. Down the line after 150 years, is the Coir industry standing on its firm feet? If we compare the Coir manufacturing industry of 2005, and the Coir industry of now (in 2012), what has been the growth accomplished by the manufacturing sector? Inclusive growth and livelihood betterment of its workers? Government’s direct support to the industry? Market growth- domestic and export? The entire industry was posting a growth of around Rs 350 Cr by way of growth in 2005. The total quantity of coir used was around 1, 25,000 metric tones. The industry has never modernized, stayed put with its obsolete machinery, fresh capital investment was practically nil, and the workforce was around 4.5 lakh, who claimed that they were getting meager wages, and saw no future in the industry hence migrated to greener pastures. Coir industry came out with a Millennium Goal Plan to take the golden fibre of God’s Own country, to new and fresh destinations through avalanche of Schemes. State Bank of India came out with a project Uptech Scheme, which was to provide a cluster model growth. Central Government also sanctioned Rs 50 Cr (in the ratio: Rs 43.5Cr:Rs10Cr) Industrial Infrastructure Up-gradation Scheme. This Scheme has been in operation for the last decade or so. In addition, SFURTI Scheme was introduced to upgrade 4 Clusters in Kerala. None of this had any impact and the severity of the manufacturing problems continued, and the industry was no where, clueless on the directions to take, indecisive on its future and directionless growth. In the meantime, around 2 lakh workers deserted the industry to take to other occupations like the Construction industry which provided them 2 times the wages they were getting in Coir industry. One superficial change occurred in the industrial landscape. Defibering of Coir was done at Pollachi and other Tamilnadu centers. Coir fibre, found surprise buyers from China, demanding around 1 lakh tonnes for which they were willing to give higher prices. Between April-Dec 2011, Rs 89.74 Cr (equivalent to 64,000 tonnes) found way as exports which were more than 25% of the total quantity of Coir end products produced in quantity by us. The handloom mat and tufted mat which had rubber content, saw export value as Rs 254.28 Cr (handloom mat), Rs 253.51 cr(tufted mat), a growth of 9.16% in quantity and 26.67% in value of the total Coir exports in respect of handloom mat and 10.38% quantity and 29.69% value in terms of tufted mats(of Coir exports). Rubber has an enlarged ratio in the end Coir products. Does it augur well for the Coir industry? Coir pith accounted for 49.17% of the total quantity of 2, 95,000 tonnes while its value on total Coir exports was 18.37% of Rs 804.05 Cr. (Direction of Exports) 25.46% of 2,95,000 tones of Coir products were directed at United states, 15.40% to China, 35.74% to Europe. In 2005, Coir industry was getting a Duty Entitlement Pass Book Credit of 1%. Today, they are getting 3.5% Duty drawback for handloom and tufted mats, 5% for Coconut mats(Chapter 57 of the ITC HS Code) under Special Focus product Scheme, Table 2 of Appendix 37D of HBP, Vol I, bonus of 2%, transport allowance of 7.5% from handloom export promotion council. A Scheme to develop the downtrodden labour known as REMOTE was envisaged with an outlay of Rs 243 Cr, with government assistance around Rs 99 Cr. People tend to create a frame around the industry saying that the industry is in doldrums. For every dollar earned, the industry gets 17.5 cents for handloom mats and 10.5 cents for tufted mats by way of inducements. In addition, interest subvention in the Pre-shipment and post shipment Credit, liberal credit under Packaging Credit under Foreign Currency, plethora of Schemes under ECGC, foreign trade participation substantially subsidized are other Schemes that stand to benefit the Coir industry. Kerala has sufficient Coconut trees, and Coconut fibre is available, but why the industry, industrial associations, bodies connected with the state/central government failed to introduce large defibering units in Kerala. It is a mystery, and not a pro -active policy for an industry which has set its eyes on 15% growth in exports. Regarding the quality of Coir fibre, why the Research Organizations in the Coir industry which is spending Crores of Rupees of Tax payers money, has not come out with viable options. Why are new machinery manufacturers not creating new innovative machines, when Jute which is having similar production methodology has introduced them? Tangible investment, higher productivity, new capacities, new innovations, R&D etc will be seen deployed in a growing industry. If Coir industry needs to remain traditional with low economies of scale, then laggard results will affect the industry. Futuristic growth, in these days of competition, must be visible at ground zero. Along with high turnover exporters, and merchant exporters who depend upon the spare capacity of industry, there are medium scale and small scale manufacturers, whose obsolete machinery and environment, and poor returns drive them out of the industry. What seems to be the future in store for them? The labourers per se. Do they get decent wages? Any measurement of growth of any industry depends upon the payment earned by the labourers and their positive attitude to the fortunes of their companies. Are their wages competitive? Is it with the times? What about the Coir markets. Does it have a domestic market? Up-country market? Has market push or market pull ever evolved. Does the industry have a marketing plan to take on the market of contemporary times? What is the contribution of the Coir ministry at the States, this being a subject in the concurrent list and the administrative ministry which administers the commodity board. Has it ever evaluated the entire industry with its futuristic growth projections, skilled labour, R&D growth, and compared the same with the picture of competitive markets? With all the support, benign assistance granted, the industry has not made any notable growth. There may be serious problems at the threshold which may need analysis. If Coir industry needs to become stable, there is a new need for re-oriented approach.

Financial liquidity-are we in the right direction

Stimulus packages and bailouts have become household words. Sovereign countries like Greece are in the midst of getting bailed out by European Central Bank. Countries are facing mounting debts and unease economy, and bailouts by other countries in the Continent are a forgone conclusion. Corporate which were in the Forbes lists are looking to Banks to bail them out? Fortune 500 Companies, most powerful American banks, thriving industrial houses, one after another, went bankrupt, even though partial resurrected by the Government bailouts India and its corporate sector is no better. Some banks were amalgamated with larger ones to save the smaller Banks from bankruptcy. Air India is in the deep red, and every year, the Government doles out tax payer’s money, yet it requires regular loans for survival. It is very near to bankruptcy. Kingfisher is moving ahead with financial woes and mounting liquidity problems. Government says that it is a private airlines problem, though they are keen to see Banks covertly extending support lest aviation sector become topsy turvy. The airline is in the brink of closure. There is another company that is on the threshold of bailout- which was hailed as a navaratna, today close to doldrums, Coal India Ltd. With zero debt, nearly Rs 4.5 bn of cash reserves and consistent cash flows, it is unthinkable that the company would ever become a bailout entrant. After all it is the world's largest producer of coal and the demand for coal is not going to be affected by Law of diminishing returns. It is one of the raw materials for producing power (electricity) in India. Is CIL heading the Air India route? There are reasons for this similarity. The biggest reason is none other than the government itself. Government sees no growth in growth areas. No pragmatic policy where required. Inaction when action should have been initiated, It has men of straw in their Policy and decision making ministries. Government is a big hindrance to the development of the Country. The company cannot increase its production. Production has in fact stagnated. It has no control over the price of its product. CIL already sells its coal at a highly discounted price because it is not allowed to sell at the import parity prices. But the employee strength is rising in Malthusian proportions. . The new mining policy desires that miners share 26% of their profits in the local communities- Corporate Responsibility. Air India or Indian suffered the same treatment. . It milked the company till it dried up into a barren land. Capping revenues while consistently formulating policies that lead to higher costs is what destroyed the company. But history was not a good enough teacher and the government is all set to repeat the same mistake. This time it seems to have chosen the mulching cow. Government is testing Utopian ideas in the fragile Indian economic sectors. Time is not distant when Coal will become a red Company. Coming to Kingfisher, Bank workers union are crying hoarse that no financial bailout should be provided to it. They claim that s 41 lakh Crores is locked up in the name of willful defaulters. SBI’s offer of Rs 1500 Cr to bail out the Company is one of the topics for the Bankers National wide strike on Feb 28, 2012. The same workers do not want smaller Banks to be merged with bigger Banks so as to reduce expenses. But even if the airline fails disrupting air traffic, throwing out many out of jobs, Bank unions feel that they can interfere in issues which are outside their pale of work! King Fisher could have been allowed to get foreign investment by allowing 24% foreign funds in Indian airlines. FCCBs are no longer cheaper because of the grave uncertainty in the forex rates. Government advisors have no clue to solve problems. Problems created by them for short term advantages. A complete rehaul of government departments is called for.

Impregnable and imponderable Malayalee mindset

Kerala is nature’s paradise with greenery, enchanting flowery plants with coloured flowers, mystic , cosmopolitan, with age old traditions, culture, and with temples, churches, mosques, synagogues, built during pre-dated historical times. It is god’s Own Country. From time in memorial, travllers and merchants came to this tiny land with their wares and took back spices, ivory, herbs. Christianity was established here even before Europe was aware of it; the most mosques were built here, way back in the 7th century. Vasco-da-Gama, landed on her shores, which led way to other European settlements. Today, Kerala can boast of human indices which have no par with amongst other states of India. It has 100% literacy, and the highest newspaper readership, women overtaking men in Census, expatriates around 1 million who remit money back to their homes which accounts for around 8% of the Foreign Exchange Reserves which is equivalent to 80% of the foreign institutional investment in India. The private sector which provides higher educational courses provides a strong climate for bringing out high professionals in medicine and engineering. Kerala has the highest suicide rate in India. The Banks do not recycle money to productive activities so that production units can manufacture goods getting income to distinct people at different stages making money circulate. Instead of putting money into commodities, the Banks do not circulate the money in Kerala which would have caused manufacturing expansion, capital money circulating brings about employment, realize itself in an expanded value. Money does not circulate in the state but is siphoned off to nearby states for disbursal as credit and creation of capital there. Capital and Labour are mobile. That is what is happening in Kerala. Those sectors which have production facilities like Coir, banks heavily on raw materials from Tamilnadu- coconut fibre has to be transported from Tamilnadu while manufacturing units are in Kerala. Kerala produces 93% of natural rubber, to feed manufacturing units mostly concentrated in North India. Absence of industrial landscape makes Kerala, a consumer state. Its production base being zero, whether in vegetables, or others, it banks on import from other states. Kerala has plenty of abundant water with 41 rivers flowing west and three flowing east, crisscrossing the state. Yet, in terms of per capita consumption, the state is next to Rajasthan, in the 20th place amongst the States. Kerala’s economy is imponderable. It has sky rappers like any metropolitan city. The fleet of cars imported with flashy bodies, colours, engines, worth Crores is seen on the roads. Even National Highways and Street Highways which may look like Village Roads do not have the capacity to hold the traffic. Investment in concrete jungles, highest pollution, has made people here susceptible to diseases. In this State Build, Operate and Transfer won’t work. First, people may not surrender their land. Secondly, they won’t pay any toll. Another reason why there is no economic activity is on account of heavy spending of household on Gold. India’s 10% of gold sold is in Kerala with an annual growth of 20%. Liquor is another industry that thrives. Tourism brings in foreign exchange but the visitor is the medium end traveler whose spending capacity is narrow. One of Kerala’s best natural Ports, Kochi, seem to await cargo. It deals more with import cargo, rather than export cargo. It lags behind the latest Ports like Tuticorin and Vishakapatanam. It can at best be a transshipment port. Export cargo should come from different places. There is a need to amend the Cabbotage Law. Kerala's industrial policy seems to be devoted to service sector only. It does not imbibe the export policy nor does it care for high end manufacturing sector. Secondly, export sector consist of commercial crops, while value addition is very little or meagre- spices, cashew, coir, coconut, fisheries, rubber, etc. Kerala has many political leaders, who had held very important portfolios at Delhi. Unlike other state ministers, they seldom use their position to bring giant projects to India. Textiles units and telecommunications, Software units are all over the state of Tamilnadu. Railway connectivity is 100%. Kerala is no where in the picture. Kerala’s bureaucracy is apolitical with a few with definite leanings, but none of them are development oriented. Kerala’s communism has made the state liberal in outlook. That was why Kerala executed the Mullaperiyar agreement in 1970 revising the original agreement signed on 29 Oct 1886. If Tamilnadu was in Kerala’s shoes, would they have signed this agreement? It was during Pandit Jawaharlal Nehru’s time, Kerala came into being in 1956. It was PM Shri Nehru, who dismissed the first Communist Government which was elected to power in Kerala in 1960. Pt Nehru seemed to find in Kerala’s intellectual traditions exactly what he needed in order to understand the troubled mind of India. He attributed Adi Sankara’s intellect to be the reason for his Advita thoughts (Glimpses of World History). However, in his Discovery of India, while praising Sankara’s striving to synthesize the diverse currents that were troubling the mind of India of that day, Pdt Nehru had mistakenly stated that Adi Sankara was born in Malabar, while he was actually born in Kaladi, the present day Angamali. Distorted history and impregnable virtues of a Malayli makes Kerala look for greener pastures. Kerala gets handful, but it deserves more than it gets. But it does not yearn!

Where is India, heading?

India is a vibrant democracy, having moved spaces to become a dominant power in the World. India has been described as ‘world’s largest democracy”, thanks to the pillars performing their role in the Constitutionalism of the Country. Despite its vast masses, variety of babel of tongues, religious heritages, cultures dating back to BC, India’s unity in diversity makes it a highly democratic country. India merged independent from the ‘sun never set empire’ on the mid night of 14th August 1947. Its founding fathers believed in Republicanism, wanted a vibrant democracy and bequeathed a written constitution after hurricane discussions lasting two years before it was adopted. Called the Constitution of the 20th century, there was a Centre and states carved out on linguistic basis. People prefer to call themselves as Malayalis, Tamils, Kannadigas, Kashmiri, Bihari, Maharashtrian, Gujarati, forgetting the Indian ness in them. I am a Britisher, German, Russian, American, but the Indian is a Malayali, Gujarati, and Maharashtrian. Is it an identity crisis? What have we become? Are we, a nation of people with liberty, equality, justice for all or a bunch of opportunists stepping on each other’s liberties to achieve self centered happiness? Where is the unity that binds us in diversity? The Mullaperiyar dispute between Kerala and Tamil nadu? Kaveri water dispute between Karnataka and Tamilnadu? Telugana problem? Belgaum, Karwar, should be part of Maharashtra. Idukki, part of Tamilnadu? Metropolitan cities, which has international and blue star companies must only employ locals is the cry of some political parties. Tamilnadu has been largely developed economically and industrially with telecom companies, auto components and automobile industry, heavy industry, textile mills and garment manufacturing industries. Good 6-way lines, number of SEZs, new Ports, increased railway lines, investments from MNC, Blue chip cos, etc. Gujarat was another beneficiary when influx of companies both national and international made it economically strong. Developed states invested in infrastructure building, which reduced the gaps, constraints and costs, inviting new companies. They had a reduced unemployment problem. There were many under developed states, which could not manure industrialization due to plethora of reasons. Unemployment rose. Disparity between states caused low plan allotment and central assistance. People’s anger manifested in the form of ‘Occupy Wall Street, Occupy London, Arab Spring movement, and in India the greed of the market, disparity in income and human development”. There are two India’s. One, called the Below Poverty Line whose expenditure is limited to Rs 32/- per person per day& another Indian Corporates in the Forbes list of first twenty. Is it not what we call technocratic governance driven by arrogant credentialed experts? Laissez faire policies should not disrupt orderly economic growth. What is very uncommon in the world is common in India. Neither are WE in the past, nor in the Present. WE expect the future to redeem us. Indian Constitution has three Pillars as its foundation- the Legislature, Executive and Judiciary. Each is independent of one another and cannot encroach upon each other. The demarcation is clear and in perfect language which gives no ambiguity for confusion. The Constitutional institutions have suffered a trust deficit, more so, in recent times. Political paralysis, lack of direction and leadership, weak political system, political parties without decisive philosophy, has made the Political elite losing touch with their democratic base. The Political gridlock has resulted in Parliament’s stalemate. Policy making body ceases to function. Executive running away from legislature, the Opposition group preferring to stall the House for a whole Session, yet both of them wants Parliament to discuss. Politics of confrontation. The disruption is pre-determined and not on the spur of the moment decision upon some deadlock. If the House does not function, legislative business suffers, bills get delayed, and policy decisions get hung. The majesty of Parliament must be restored by the sane elements of all Political parties. The Parliament member can record his dissent. The party can walk out, expressing its resentment. They can agree to disagree. But the Parliament should continue to run. Is it not the thrust of the democracy? The Prime Minister is the head of the Executive. The Opposition calls him as a weak prime minister, asks him to resign, says he is controlled by remote control, he does not have Political will, etc. This is most unfair. The Ruling party members criticize the PM. The Coalition parties in the ruling group oppose what he proposes. The Regional satraps, the Chief Ministers, wantonly disgrace him forgetting protocol for political reasons. The Cabinet team is not decided by the prime Minister. They are decided by the Leaders of the Coalition parties. If one minister resigns, the minister ship should be given to another party man. Short term gains which are the vision of the Indian polity occur; country misses the long term benefits. Cash for Question scam, Cash for Vote, 2 G scam, CWG scam, and many other scams, scandals and corruption at high places, have sent down shock shivers among the people. This has been exaggerated by the TV channels, one competiting with another, and there are expert opinions pouring in by truck loads on various sides of various issues. Civic Society, NGOs, group of People has taken to the streets complaining about the democratic procedures not being applied sufficiently and stringently to vicious corruption. People have expressed their distress against the Political class as a whole. Is democracy safe in their hands, question these silent protestors. Another Policy, the ruling elite obsessed is with the emotions of minorities. Quota is often used as a Political tool even though the founding fathers used this safeguard to improve educational and employment opportunities alone. Another Pillar of Constitutional safeguard is the “judiciary” with covenants, rules, and procedures. The three important cardinal pillars like Legislature, Executive and Judiciary have to work in tandem; one does not have overpowering power over the other. Every one of these pillars justifies the ends and means of getting their way over the Constitution by usurping more powers. Are they constitutional? Matters of policy, administration, appointments, governance, are the functions of the Executive who needs to address them, and the responsibility of legislating, questioning the government’s justification, laying down rules are overseen by the Legislatures. The Courts have entered their domination into every thing, including the realms of Policy making. We should strictly follow the Code of Civil and Criminal Procedure, according to the statute, otherwise Rule of Law will get a back seat.

Political paralysis led economic crisis

India’s Growth story can be compared to the Bharatyanatyam dance, a popular dance form in South India; for every two step the dancer takes, she retreats two steps backwards and is in the maiden point. India is suggested as one of the growing economies of the world which is expected to hit the top by 2030. 2011-12 was a year of economic upheavals and surprises. The growth rate plummeted. Manufacturing growth touched negative growth during Oct 2011. Import between April-Nov 2011 was $ 309.53 bn(Rs 14,35,304.79 Cr) against $ 231.66 bn(Rs 10,85,780 Cr), an increase of 30.24%(in $ terms) and 32.19%(in Rupee terms) Year-on-Year. Similarly, Exports during the same period touched $ 192.69 bn (Rs 8, 93,094.16 Cr) against $ 144.66 bn(Rs 661,055.88 Cr) in the same period2010, with a growth Year-on-Year at 33.21(dollar terms) & 35.10 %(in Rupee terms). The world growth was perhaps obstreperous. Political paralysis seen in United States and Europe as governments are at an inflection point. Shaky Europe tries to muddle thro’ uncertain of which path to take, and takes the uncertain path. Government in Greece, Italy, and Spain have collapsed or voted out. In Russia and France, problems persist. Tea Party movement in United States, occupy Wall Street (especially Manhatten Zucasthi Park civil disobedience programme), Arab Spring, Tahir Sq protests, fall of dictatorship in Libya, Egypt and other countries, Greece and Ireland trying to get emergency loans, show popular expression of breakdown of Trust. Growing wealth inequality, protest against greed, lukewarm legal recourse against closed banks and bankers for their demure and financial mess, have created a deficit trust and political gridlock. Niall Ferguson, a prominent Economic historian at Harvard felt that ‘for the better part of 500 years, it was the western in both sides of the Atlantic who could say they had the best economic system, best political organizational structure, and so forth. These claims have increasingly become hallow.’ John Maynard Keynes must be laughing in his grave. Everywhere, cutting spending during slump worsens the slump. Spending cuts saw further erosion in consumer business confidence, increased unemployment, and reduced growth. Like Indian political elite, obsessed over short term deficits, considered it as an actual problem, and in trying to ease the process, created the real problem- a depressed economy, mass unemployment and lower economic growth. In India, regulatory crisis, policy paralysis, divided coalition of parties, both in the Ruling and opposition political parties, ambitious regional satraps who want to carve a place for themselves, uncontested competition between states. Prime Minister calls an ally Chief Minister who refuses to come. After voting with the Government, opposing the same Bill in the other house, what Policy reform is possible. It only causes erosion of Prime Minister’s powers. The Prime Minister of India cannot act like Aristotle in Lyceum! India develops on their critical manpower talents- the service sector. That is the economic potential that needs to be managed to create capital. Pressure for Reforms arise when capital moves or labour moves. In India, both Capital and labour move. The credibility of Political system looks compromised, because of Coalition politics. Will parties become disciplined; otherwise, lawmaking Politics and contagion will drive the underperforming economy to the oblivion.