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           | Patna, (Bihar Times):For sometime now, I had been going  through the distribution of central academic and research institutions and the  emerging pattern in setting up of upcoming institutions. It has got interesting  story to tell on the mindset of the federal policymakers. Recently, a slew of  institutions related to academics and research has been announced. Going by the  public pronouncements one would have expected that most of these institutions  would be going to the states hitherto deprived of such institutions. Federal  government, in keeping with its own findings as stated on various occasions and  also reproduced by federal authorities in various forums, should have been busy  setting up such institutes in places like Bihar,  Eastern UP, Jharkhand and Chhatishgarh. Unfortunately that is not  the case. Even now West   Bengal gets most of the institutions meant for eastern regions,  even when it is much better than all its surrounding states. Be it IIT, IIM,  IIT equivalent IISET (Shibpur Engineering College),  IISER or even the just announced one "Abdul Gani Khan Chaudhari Central  Engineering Institute at Malda, West Bengal  has got them all. Is n't this kind of policy going to fuel out migration from Bihar even further?
 It is sad that policy frameworks in  regard to enduring economic development invariably overlook the interest of  eastern states, especially, Bihar. It is  difficult to say whether the same is on account of ineptitude of political  leadership of these states, or is some systemic skew which has got built in  over a prolonged period. Situation is so grave now that the prime cause in form  of such culprit policies, by virtue of being in operation for over a prolonged  period is now quite difficult to segregate from the  symptoms. It is still more difficult to  understand how these aberrations were allowed to take shape in the first place.  Perhaps, some indication of the same can be found even in the recent policies  and programs of central dispensation.
 
 Let us take some of the proposed  and ongoing policies to find out how skillfully they are crafted to marginalize  the underdeveloped regions of the country even further.  One of the critical policies, which is being  pushed through at this hour and may have significant bearing on the eastern  states, is a plan for "Western Industrial Corridor (WIC)". Those who  have architected this will definitely argue in support of this visionary  initiative. Nothing wrong with that. However, it is difficult to overlook the  fact that these very people never thought of exploring something like this for  eastern provinces in question. One such option could have been to create an  "Eastern Economic Corridor (EEC)" originating from Paradip and moving  up to Kathmandu, ultimately linking up with  the Tibet Highways & Proposed Tibet Kathmandu railway. It is obvious that  nobody wants to waste time thinking of such ideas for eastern region. Does not  matter even when state plan of Bihar is direct  responsibility of Dy Chairman of Planning Commission. on paper. I'm sure that  EEC would have been as much economically attractive for investing this  country's precious resources. I say this because it has three fold potential of  giving rise to unprecedented growth- in form of industrial activity, in  international trade & commerce as also in terms of tourism. How such a  common place thought can escape mind of all policy makers?
 
 Next, let us take up the recently  concluded "Farm Loan Waiver" scheme. Why the scheme was implemented  in such a way that the most underdeveloped state in the country Bihar got  benefited  only by about Rs 2450 crores  as against Rs 7729  Crores  in case of Maharashtra (source: state advertisement  released to media)? Other major beneficiaries of this scheme were all better of  states like Andhra Pradesh and the other developed states from South India. Also scarcely discussed is the fact that  these very states were given a Rs 16000 crore special package for their 31  agrarian crisis hit districts. Certainly, there could have been other ways of  implementing these schemes without hurting the interest of those states which  deserved better attention. For example, central government could have allocated  the total loan waiver amount of Rs 70,000 crores between various states based  on the 1971 population figures or as per 12th finance commission which recommended  devolution formula for central revenues. In case of any shortfall, the states  should have been asked to make up for the shortfall from their own exchequer.  Does not the loan waiver in its present form hoodwink the recommendations of 12th  finance commission, a supreme constitutional authority in this matter?
 
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 Patna, (Bihar Times): Finance Minister never misses to  point out central investment whenever he makes any provision for the  underdeveloped region. I wonder why he never points out the extent of central  government investment in Tamil Nadu. AS  per MOSPI's data recently released; total central investment in Tamil Nadu  projects, as monitored by MOSPI, is at RS 409 bn as against Rs 289 billion each  for other three states vying for the second position which includes Bihar. Common sense says that central government should  concentrate on underdeveloped regions. This is happening even when states like  TN enjoy a head start over underdeveloped states through favourable treatment  over a prolonged period. Finance minister never misses to highlight whatever he  provides explicitly for underdeveloped states.Why  doesn't he ever look into how much money is  being surreptitiously diverted to better off states using skillfully crafted  policies. Lot of leading commentators have  attributed it to the lack of sub-nationalistic feeling in heartland states. Do  you reward only those states which blackmail the unity of India by  asserting their regional identities every now and then?
 Policies governing other important  schemes are also an unmitigated failure. Take for example the specific case of  NHDPIII projects. Making mockery of even the avowed policies governing this  program which would have implied that a state at national cross road would be  getting more NHDP III for four lane program, we have TN sitting at the head of  table with 3261KM of length. Contrast this with the lengths planned for Bihar,  which is just about 1750 Km. This is when Bihar  is strategically located at the national, and virtually a Trans-Asian, cross  road. This conundrum is difficult to explain even in the light of existing  governing policies for identifying stretches for four lane program. Compounding  it further, even the pace of implementation seems to have been designed to keep  underdeveloped regions even further behind. This prompts me to rename 'National  Highway Authority of India(NHAI)' as 'State Highway Authority of  Tamilnadu(SHAT)'. Machinations of NHAI is beyond my comprehension.
 
 Situation is no better in relation  to other critical infrastructure programs like National Gas Grid. Here also,  policy seems to favour developed regions in west and south. East and North East  have been virtually ignored. I don't understand how these regions are going to  compete with rest of India  when they are put to such disadvantages in matter of all these crucial  infrastructure?
 
 Let us take some other example,  like distribution of academic and research institutions as also distribution of  institutions of economic and strategic importance. This again leads us to  complete failure of central policy makers.   While HRD minister waxes eloquent about lack of technical and higher  education institutes in Bihar but when it comes to locating any such upcoming  institute, he goes into selective amnesia. Till very recently, Bihar which is one of the most populous states had hardly  anything to show, even when, all major states boasted of over 30 academic and  research institutions. This number for developed states jumped to over 40 if we  add other institutions of economic and strategic importance.  Nothing significant to show for Bihar even then. Paradoxically, no effort is being made  even now to rectify this prevailing imbalance.
 
 It is difficult to explain what  leads to mixing of the policies and programs favouring underdeveloped regions  at the very outset. What can be more evident than the failure to move ahead  with harnessing of the water resources of rivers originating from Nepal for the mutual benefit of the two  countries, especially, eastern UP and Bihar in India? The matter has been  entangled into excessive diplomatic dialogue, whereby, it has fuelled  apprehensions in Nepal.  Giving some benefit to its smaller neighbour, if India  can stop this massive wastage of natural resource, it can do a lot of good for  its own economy as also for the economy of Nepal. However, it seems that even  diplomatic dialogues are designed to checkmate the interest of Bihar and UP.
 
 Similarly, there are many other  policy anomalies. It can be seen in the outline of JNNURM as also in  traditionally followed metro-centric development approach. If it is high speed  train or expressway it must lead to metro cities always. Why these cann't be  between any other two capital or other important cities?  Why all head offices, nodal offices,  regulatory offices must always be located in certain preferred cities  only?  Why courts, registrars etc in  these four cities should have more authority than others. Why a state owned  inland water vessel of Bihar has to be registered at Kolkata and not at Patna? There was no  credible effort ever made to develop cities like Ranchi,  Patna, Allhabad and Banaras  on the line of other big cities even when they merited such a treatment all  along.  Ranchi  has all the potential to be on par with Bangalore  and Pune, where as Patna could have been  developed like Delhi.  Gaya and Banaras  had potential to be developed into an international city. However, this would  have required central government offices, CPSU head offices, academic and  research institutions being located in these places. It seems no one ever  thought of these things till now.
 
 People easily recognize the policy  biases like freight equalization, or for that matter location of head offices  of CPSUs and Banks. However, it is sometime difficult to realize the damages  done by induced critical delays, which keeps some regions perennially backward  by putting them at competitive disadvantage perennially, especially, during the  important phase of dependent economic activity. Even more difficult to see  through is the impact of policy decisions like one time measures on the pattern  of farm loan waiver. This is because these policy biases though high in impact  are 'point of time' in nature.
 
 It is very important that Eastern  States which are potentially the richest, based on their agro and mineral  potential, do recognize the root causes of their underdevelopment. It is high  time that complete control and full right to exploit the mineral resources be reverted  to states owning the reserves of these  minerals. It does not help, if we protect the regional identities as  ferociously as we are doing today, and still have federal control on state  specific resources. This single act can solve a lot of problem of  underdevelopment of mineral rich regions of Jharkhand, Orissa, Chhatishgarh and  Madhypradesh.
 
 If the facts indicate to cotrary as  evidenced in backwardness of regions which should have been the richest in  first place, there is something seriously wrong with or economic and  developmental policies.
 
 Recommendation:
 
 To stem this rot emanating at  central administration level, Bihar government  can do well by setting up a special cell under the state planning board for  scrutinizing central government’s policies, plans and programs. Additionally,  this proposed cell should also monitor the state specific projects stuck at the  central level. This cell must have an expert full time member, with their  employment period co-terminus with state government. It  should scrutinize the impact of each and  every central government policies and programs on the state. It should be  suitably empowered and must have the mandate to take up the issue with  concerned central ministries and departments as it may deem fit. Besides, these  members shall also be responsible for enunciating programs and policies at the  state administration level. They should also be entrusted with the task of  monitoring the implementation and should be empowered enough to take remedial  action riding roughshod over the bureaucratic bottlenecks.
 
 It is high time that positive  changes are induced in the central policies and programs to enable  underdeveloped regions to do better. It can be nobody's case to rob Peter to  pay Paul as is being done today. Neither such policies are economically  justified nor do they serve any useful purpose in the prevailing  socio-political milieu of the country.
     
      
     *A Financial Sector Consultant and Research Analyst 
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