Multi-faced Rapid Economic Development
At A Glance
Dr R L Pitale*
The Vidarbha region since it became part of
The economic, financial and administrative benefits of
- Economic and Financial Benefits
1. Separate Vidarbha will be surplus in electricity. There will be no load shading and all villages and towns will have uninterrupted supply of electricity year round.
2. This will connect all pump-sets to irrigate the farms of the farmers. Existing irrigation potential will be fully used.
3. All irrigation projects which are languishing in
4. Agro-processing industries and horticulture will be developed that will further boost the farm economy.
5. Electricity using small, medium and large industries will be set up with more incentives to industrialists with backward area concessions.
6. For MIHAN project that needs the feed of passengers and cargo, a Master Plan for the same will be designed and put into operation in the next two years. This will generate technical and ancillary employment.
7. The much neglected Tourism Sector will get a special attention and investment allocation. Vidarbha has number of tourists destinations which Maharashtra Government did not care to develop.
8. Vidarbha can resort to low cost organic farming suiting its dry land area, give remunerative prices to farmers and arrange for their export to European Union countries who have abandoned GM Crops. There is huge market for organic food including organic cotton.
10. More thermal electricity generation to sale it to other States to generate more income/revenue.
11. Vidarbha will establish balance between revenue and expenditure for multi-faced development. Vidarbha’s estimated Budget 2009-10 is of the order of about Rs.24,000 cro with its revenue and expenditure balanced. Haryana and Punjab which are comparable in area and population to Vidarbha, have budget of Rs.28000 and Rs.30,000 cro. respectively. Harayana and Punjab do not have Mumbai and still they have progressed faster than
- Administrative and Organizational Benefits
as the capital of Vidarbha, the seat of decision making will be easily accessible for the common people. In a short period of one to three hours people can contact the administration personally. Nagpur
- Ministers and peoples representatives will also be able to intensify their supervision and monitoring of development projects quickly. Administration will be more people oriented.
- Ministers and MLAs will not be able to shirk their responsibilities by pointing that Mumbai Sarkar is not listening to them. They will be more responsible.
- Number of public sectors are less in Vidarbha. The size of the government will be kept to the minimum and more private participation will be encouraged which will increase administrative and organizational efficiency.
- Right of self determination will make all the difference in fully utilizing resources and Vidarbha’s resources will not be exploited by others as is happening now.
- Economic and Financial Advantages
- With separate Vidarbha, entire revenue of Mumbai will be of
Maharashtra. Benefit to Maharashtra.
- No Winter Assembly session in
, hence saving of about Rs150 cro. Nagpur
- There can be one Governor for Maharashtra and
. Vidarbha will share half the expenditure of Raj Bhavan. Economic benefit to Vidarbha State Maharashtrain lakhs of rupees.
- Current expenditure on Naxal affected Chandrapur and Gachiroli will be net saving in expenditure to
- Indivisible Expenditure on administration, law and order, education and welfare schemes etc of Vidarbha will not be required to be done. Saving for
- With the economic development of Vidarbha, flow of unemployed of Vidarbha to Mumbai will reduce. Advantage
- Reverse flow of population to Vidarbha from rest of
Maharashtraonce the Vidarbha becomes rich as it was earlier. Advantage Maharashtra.
- Expenditure on Public sector units/ organizations of Vidarbha will not be required. Financial benefit to
- Mumbai has space problem. Vidarbha can lease land on reasonable rate to
Maharashtra. Advantage Maharashtra. Maharashtrais deficit in electricity. Vidarbha makes available surplus electricity to Maharashtraat reasonable rate compared to rates charged by private companies. There will, of course, be no free electricity from Vidarbha.
- Vidarbha Development Board will not be required which saves expenditure of few crores to
- All Plan and Non-Plan expenditure of Vidarbha will not be there which is net saving to
- On rough estimates of Budget 2009-10, Vidarbha being a State,
Maharashtrawill have to incur expenditure on purchase of about 2500/3000 MW electricity costing about Rs 4500 cro.and there will be loss of revenue which roughly adds to Rs.18,952 cro. But this will be financed by reduction in expenditure on Vidarbha to the tune of about Rs.22601 cro which will over compensate Maharashtragovernment leaving a surplus of Rs.2626 cro.. Size of Maharashtra Budget will be manageable with the exclusion of Vidarbha. This is net gain to Maharashtraonce Vidarbha becomes a State. This is a matter of detailed calculations which can be undertaken in a separate Meeting. Earlier some leaders from Vidarbha had spread mis-information that Vidarbha will not be economically viable. If Maharashtrawith its public debt of Rs 1 lakh and 86 thousands cro. can be viable then Vidarbha will also be Viable. No state has been created on the basis of economic viability but on the basis of economic development with right of self determination for realizing the economic benefits denied to the people of the region.
- Administrative and Organizational Gains
- Once Vidarbha becomes separate State, long distance administrative supervision will not be required. That will save lot of botheration.
- With separate
Vidarbha State, Maharashtra’s geographical management will be
Maharashtrawill be absolved of its responsibility of economic development of
Vidarbha for which it has no Political Will as pointed out by the Planning
Commission’s Fact Finding Committee’s 244 pages Report 2006 and CAG
Report of 2006-07.
- Vidarbha being not part of Maharashtra,
Maharashtragovernment will not be
required to engage in the exercise of diverting funds from Vidarbha to Western
- Problem of backlog will not be there. Benefit to
- No Article 371(2), no Directives from Governor,
Maharashtrawill have all administrative and financial freedom to chart out its course of development.
- With less MLAs and MLCs in
with exclusion of Vidarbha, more space for Maharashtra MLAs and MLCs in Aamdar Niwas. More Bunglows and space for Maharashtra Ministers. Advantage Maharashtra State Maharashtra.
- Down sizing of Bureaucracy in Maharashtra as part of government servants will be transferred to
. Benefit Vidarbha State Maharashtra.
Mutually Agreed creation of
*Economic Adviser (Retd), Government of