Corruption, Poverty and Pollution in Vibrant Gujarat. The average GDP growth rate in Gujarat over the past ten years has been above the national average, but Gujrat is behind in growth rates from states like Maharashtra, Tamil Nadu and Delhi . Gujarat’s growth has been achieved at the cost of handing over complete control over the economy to corporates, and wholesale privatisation: ‘Key sectors – traditionally held to be the preserve of the state – such as ports, roads, rail and power have been handed over to corporate capital. This has meant, inevitably, that ...the government has abdicated all decision making powers, as well as functional and financial control over such projects. Nowhere else in the country has this abdication of responsibility been so total, nowhere else has the state given over the economy so entirely to the corporates and private investors”. Infrastructure and access to water and electricity favour industry over agriculture and individual consumers. Employment growth in manufacturing and services turned negative in the last five years, and even prior to that was concentrated in the informal sector (Nigam: 2013). The Modi administration’s largesse to corporates can be judged by two examples. One is the staggering subsidies offered to Tata for its Nano plant and other projects. Against an investment of 2900 crores, Tata received a loan of 9570 crores at 0.1% interest, to be paid back on a monthly basis after 20 years, in addition to land at much below market rates, with stamp duty, registration charges and electricity paid for by the state. Tax breaks mean that the people of Gujarat will not be getting any of this money back in the near future (Financial Express Bureau: 2013) . All the rules were bent to provide Adani with a power supply contract costing the state of Gujarat an excess Rs 23,625 crores over 25 years (Kumar: 2013), and other companies, including Reliance Industries and Essar Steel, were extended similar favours (Press Trust of India: 2013a). So when these companies praise Modi to the skies , support his candidature for PM , use the media they own to promote Modi and silence criticism of him (Vij: 2014) , and put their aircraft at his disposal (Sinha: 2014), this is merely quid pro quo.
Posted on: Sat, 05 Apr 2014 10:00:35 +0000
Trending Topics
Recently Viewed Topics
© 2015