Vidarbha - Mutually Beneficial to both Vidarbha and Maharashtra- Dr R L Pitale

Vidarbha Rajya

Mutually Beneficial to both Vidarbha and Maharashtra

Multi-faced Rapid Economic Development

At A Glance

Dr R L Pitale*

The Vidarbha region since it became part of Maharashtra in 1960 has suffered economically resulting in unabated suicides of farmers and increasing unemployment of youths during the last 40 years. The region has been systematically neglected by the Maha Govt.. There is lack of Political Will on the part of Maharashtra Government to develop Vidarbha which is amply and exhaustively documented by The Planning Commission’s Fact Finding Committee’s 244 pages Report (2006) and CAG Report (2006-07). Hence unless Vidarbha has the Right of Self determination i.e. unless it becomes a Separate State, it can not make rapid economic progress and avoid exploitation.

The economic, financial and administrative benefits of Separate State are briefly stated below without jeopardizing the economic interest of rest of Maharashtra which are also given in a separate statement.

1. 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 Maharashtra regime will be completed on priority. Out of the total cultivable area of 55 lakh hectares, only 10 lakh hectares is under Rabi Crops. Once irrigation becomes available the Rabi activity will increase and give more employment to farmers and farm labour of Vidarbha. There will be No suicides of farmers in Vidarbha.

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. Maharashtra government even did not think on these lines.

9. Forest based and mineral based activities will be given boost for generating more revenue.

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 Maharashtra. Hence, Vidarbha State has the potential of developing fast once it is detached from Maharashtra.

2. Administrative and Organizational Benefits

1. With Nagpur 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.
2. Ministers and peoples representatives will also be able to intensify their supervision and monitoring of development projects quickly. Administration will be more people oriented.
3. 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.
4. 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.
5. 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.

Vidarbha State

Advantage Maharashtra

Separate Vidarbha State is going to be advantageous economically, financially and administratively to Maharashtra also. The major advantages are:

1. Economic and Financial Advantages

1. With separate Vidarbha, entire revenue of Mumbai will be of Maharashtra. Benefit to Maharashtra.
2. No Winter Assembly session in Nagpur, hence saving of about Rs150 cro.
3. There can be one Governor for Maharashtra and Vidarbha State. Vidarbha will share half the expenditure of Raj Bhavan. Economic benefit to Maharashtra in lakhs of rupees.
4. Current expenditure on Naxal affected Chandrapur and Gachiroli will be net saving in expenditure to Maharashtra.
5. Indivisible Expenditure on administration, law and order, education and welfare schemes etc of Vidarbha will not be required to be done. Saving for Maharashtra.
6. With the economic development of Vidarbha, flow of unemployed of Vidarbha to Mumbai will reduce. Advantage Maharashtra.
7. Reverse flow of population to Vidarbha from rest of Maharashtra once the Vidarbha becomes rich as it was earlier. Advantage Maharashtra.
8. Expenditure on Public sector units/ organizations of Vidarbha will not be required. Financial benefit to Maharashtra.
9. Mumbai has space problem. Vidarbha can lease land on reasonable rate to Maharashtra. Advantage Maharashtra.
10. Maharashtra is deficit in electricity. Vidarbha makes available surplus electricity to Maharashtra at reasonable rate compared to rates charged by private companies. There will, of course, be no free electricity from Vidarbha.
11. Vidarbha Development Board will not be required which saves expenditure of few crores to Maharashtra.
12. All Plan and Non-Plan expenditure of Vidarbha will not be there which is net saving to Maharashtra.
13. On rough estimates of Budget 2009-10, Vidarbha being a State, Maharashtra will 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 Maharashtra government leaving a surplus of Rs.2626 cro.. Size of Maharashtra Budget will be manageable with the exclusion of Vidarbha. This is net gain to Maharashtra once 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 Maharashtra with 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.

2. Administrative and Organizational Gains

1. Once Vidarbha becomes separate State, long distance administrative supervision will not be required. That will save lot of botheration.
2. With separate Vidarbha State, Maharashtra’s geographical management will be

more efficient.

3. Maharashtra will 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.

4. Vidarbha being not part of Maharashtra, Maharashtra government will not be

required to engage in the exercise of diverting funds from Vidarbha to Western

Maharashtra. All funds will be of Maharashtra. There will be no need for

Maharashtra to take away projects from Vidarbha.

5. Problem of backlog will not be there. Benefit to Maharashtra.
6. No Article 371(2), no Directives from Governor, Maharashtra will have all administrative and financial freedom to chart out its course of development.
7. With less MLAs and MLCs in Maharashtra State with exclusion of Vidarbha, more space for Maharashtra MLAs and MLCs in Aamdar Niwas. More Bunglows and space for Maharashtra Ministers. Advantage Maharashtra.
8. Down sizing of Bureaucracy in Maharashtra as part of government servants will be transferred to Vidarbha State. Benefit Maharashtra.

Mutually Agreed creation of Separate State of Vidarbha will generate more goodwill and respect of each other. Let us separate peacefully and amicably. Demand for Vidarbha State is pending with the Ministry of Home Affairs, Government of India. The earlier it is granted, better it is. Central Government need not wait for Maharashtra Assembly to bring the Resolution of Vidarbha State and pass it but can start the process of creating the State on its own. Separate Vidarbha will add to India’s GDP growth.

*Economic Adviser (Retd), Government of India. M 09890279155