2 years of sixth term, little to show

Pratibha Chauhan

For the past two years since he has been in office, the defining moment of Himachal Pradesh Chief Minister Virbhadra Singh’s tenure has been the one he would rather forget: the defeat of his two-time MP wife Pratibha Singh in the Mandi Lok Sabha election in May this year. That probably exemplifies why “impressive” would not be the correct description of his sixth term as Chief Minister till now.

If his government has gone all out against the previous BJP chief minister Prem Kumar Dhumal, who alleges political vendetta as being his successor’s prime achievement, Virbhadra Singh himself too has had to spend a considerable amount of time dealing with the corruption cases against him.

At one time, the court cases even threatened his continuation in office, but Virbhadra remains his dogged and fighting self even at the age of 80. Whatever be his performance, the “Raja” of Rampur Bushahr’s remarkable connect with the people of the state remains intact. It’s a fact that the Congress high command tried to ignore at its own peril not once, and had to quickly retreat every time. The dissidents within the party too seem to have reconciled to the fact that ousting him is a distant dream.

Virbhadra had first occupied the Chief Minister’s chair in 1983, and over the years his grip on the bureaucracy and the knack of getting things done became well recognised not just in the hill state. That trademark hold on the administrative machinery, and leaving his imprint on everything he did, is now evidently slipping. Most ministers and Congress legislators also concede how the sluggish approach of the bureaucracy has impacted the functioning of the government. The bureaucracy is not only divided but various power centres are seen to be working at cross purposes.

Another key impediment has been the grave financial crisis the state government is facing, which has made the Chief Minister’s task of ensuring all-round development rather arduous.

With a galloping debt burden of over Rs 30,000 crore, the government is finding it increasingly difficult to foot the whopping salary burden of 2.78 lakh employees. The fact that 73 per cent of the state budget is spent on salaries and pension of serving and retired employees leaves little at the disposal of the government to speed up development.

Virbhadra himself, however, remains upbeat about the financial health of the state, an optimism not shared by many. “I disagree that we are faced with a severe financial crunch though I admit that I should have enough resources and their long-term guarantee for planned and uniform development, plus sustaining the ongoing works. We inherited an economy which was in a complete shambles and it took us some time to put it back on track,” he says.

The 13th Finance Commission gave an enhancement of just 50 per cent as grants to Himachal as compared to 126 per cent to some states, he says, terming it a raw deal “because of the failure of the then BJP regime to plead the state’s case properly”. The government’s now sent its Annual Plan of Rs 2,600 crore for 2014-15 to the Planning Commission.

Prof Dhumal is quick to counter the argument. “Development has virtually come to a standstill as there is a severe financial crunch due to mismanagement by the Congress regime. During our tenure, there was no crisis as there was proper fiscal management and no wasteful expenditure. Neither was there a delay in payment of salaries, pensions or other dues to the employees, nor was the pace of development impacted. Rather, it was during our tenure that we bore the huge financial burden of paying arrears to employees on account of the implementation of the Pay Commission,” he says.

He also points to how instead of curbing its wasteful expenditure, the government is trying to pass on the burden to the common man by raising the value added tax (VAT) on diesel and petrol.

Meanwhile, the possibility of Himachal getting Rs 4,200 crore as power arrears from its share in the Bhakra Beas Management Board (BBMB) from Punjab and Haryana also seems bleak, despite the Supreme Court orders.

“We are a state which believes in peaceful resolution of matters, which works constitutionally and legally but the states who have benefitted from the sacrifice made by the people of Himachal are denying us our right,” says the Chief Minister. “Despite Supreme Court directives, our neighbours have yet to pay us Rs 4,200 crore on account of power arrears in the BBMB projects and even the displaced families are yet to get their due. I have no hesitation in admitting that Himachal is paying the price for being a peaceful state,” he reasons. This has left the government with no option but to go in for public-private partnership for implementing various projects, be it in urban development, transport, tourism or other departments.

Virbhadra feels his government has actually done very well in the fields of industry, health, education, road infrastructure, urban development, transport, horticulture and power. Where the government has been unquestionably proactive is introducing industry-friendly measures to sustain the existing units during the last one year. The money-spinner tourism sector though did not get the attention it deserved (see boxes).

For all his criticism of the state BJP, the Chief Minister says “by and large we are getting good cooperation from the Modi government except one or two ministries”. He also expresses the hope that the replacement of the Planning Commission should not just be sympathetic towards the backward and hill states but more generous “as our needs are very specific and different from other states”.

Back to the business of politics now, and the beginning of 2014 saw Virbhadra come under tremendous pressure in wake of the ongoing investigation in the income tax returns and alleged corruption cases, which are pending in courts. The Opposition BJP disrupted the Assembly proceedings, but Virbhadra braved the storm.

The Lok Sabha elections, however, brought a huge setback. The Congress received a drubbing at the hands of a resurgent BJP, losing all four seats, but personally disheartening for Virbhadra was the loss from Mandi of his wife Pratibha Singh. “It was the complacency of our party cadres and the fact that the Narendra Modi wave swept Himachal like the rest of the country. Never before in my political career of over 50 years have I seen such a high-blitz campaign revolving around an individual and not a party. What the Congress did to counter this propaganda was too late and too little,” he reasons.

Notwithstanding the BJP accusation of unleashing political vendetta, Virbhadra kept the heat on his political rivals as the Vigilance and Anti-Corruption Bureau vigorously pursued the charges contained in the Congress chargesheet. It was the Himachal Pradesh Cricket Association (HPCA) headed by Anurag Thakur, Hamirpur MP and Dhumal’s son, which came under scanner. In fact, both Dhumal and his sons Anurag and Arun were named in at least half a dozen cases.

“I was never a part of the chargesheet committee which framed the document but being in the Chief Minister’s chair, I am duty-bound to get it investigated. Those who have done no wrong need not fear as investigations are being done strictly as per law” is the Chief Minister’s defence to BJP charges of political vendetta. It’s something former chief minister Dhumal brushes aside. The BJP leader also alleges that the mining, forest and land mafia is active and the “illegal properties attached by our government are being returned to the offenders, sending very wrong signals”.

Virbhadra rejects the charges and says his eyes are set on development. He  has another three years to show proof of that.

Incentives to industry

• With major incentives of the central industrial package having lapsed, the Virbhadra Singh government has reduced the stamp duty by 50 per cent, frozen any power tariff hike till 2018 and cut Electricity Duty.
• The state managed to rope in 56 projects worth Rs 5,826.99 crore with the potential to employ 6,654 youth in comparison to the 62 projects cleared last year with an investment of Rs 1,755 crore. Majority of these though deal with expansion of existing units. The major investors include TVS Motor, Vardhman Textiles, Mankind Pharma and L’Oreal.?The industry also saw the re-introduction of the Central Investment Subsidy Scheme.?An Investor Promotion Cell too has been constituted to specially facilitate speedy clearances.
• Though simplification of the stringent Section 118 of the HP Tenancy and Land Reforms Act, 1972, was undertaken and industrial plots were exempted from its binding, the investors are yet to see its impact. Reduction of VAT from 5 to 4 per cent also brought some cheer to the industry though the state government failed to announce the new industrial policy.?
• A serious effort to rope in investors from across the country was initiated by holding meetings in Mumbai, Bengaluru and Ahmedabad.

Surplus power, not many buyers

• The decline in revenue from the power sector has been a worrisome factor. While there is ample surplus power, but in the absence of any buyers and that too at good rates, the power market scenario continues to remain grim in Himachal Pradesh. It is for this reason that the state government decided that rather than looking for buyers and then endlessly awaiting payments, the better option is to offer incentives to the industry by freezing the power tariff for the next five years
• Barring the 412 MW Rampur hydro-power project, no mega project was commissioned this year
• The death of 24 engineering students from Hyderabad in the gushing waters of Beas river near Thalout in Mandi shook the nation, with disbelief and anger at the callousness of the Larji power project authorities, which released huge volumes of water without warning. It took a tragedy for the government to ensure strict adherence of safety norms laid down in the State Hydro Power Policy- 2006

 
Tourism left stranded

• The tourism sector, which could be the biggest revenue contributor and employment generator, failed to receive much attention of the government. No major projects barring the ones being undertaken under the Asian Development Bank (ADB) funding for restoration and conservation of heritage buildings, strengthening of facilities at tourist and pilgrim centres and Pong Dam have been pursued.
• Despite being promoted as an international destination, the state still cries for reliable air connectivity. Barring flights from the Gaggal airport in Kangra, the airstrips at Bhuntar in Kullu and Jubbar Hatti near Shimla have been almost non-operational. The high tariff and weather vagaries no doubt make these routes very uneconomical for airline operators, but then reliable and regular air connectivity is a pre-requisite for tourism promotion.
• Efforts to set up an international airport near Kandaghat in Solan district have also not fructified in the absence of availability of land.
• The Chief Minister is candid enough to admit that tourism did not get the kind of attention he would have wanted. “But now a number of projects have been planned, including setting up of new hill stations, aerial ropeways and promoting water sports at Pong Dam and Gobindsagar,” he says.

What political heavyweights say

The contribution of BJP, which was against the very grant of statehood to Himachal, has been very little in the overall development of the state. Unlike BJP’s discriminatory approach, the Congress is committed to the balanced and uniform development of every part of the state. — Virbhadra Singh, Himachal Chief Minister

All that this government has done is to unleash political vendetta against opponents by framing them in false and fabricated cases. Development has virtually come to a standstill because of the severe financial crunch due to mismanagement. And where is the unemployment allowance that the Congress had promised? — Prof Prem Kumar Dhumal, former Chief Minister

Virbhadra Singh should have risen above petty political considerations and tried to do his utmost for the state. Unfortunately, this tenure of his has been the most dismal one with governance being the biggest casualty. The mining, forest and land mafia are having a field day. There is nothing that this government has achieved except getting back at its political opponents. — Satpal Singh Satti, state BJP president

Considering the meager resources and pitiable condition of the economy that we inherited, the Virbhadra government has done a commendable job. The four BJP MPs should now make efforts to get the maximum possible financial assistance. The Congress’ endeavour will be to bridge the gap with the government so the party workers can convey the problems of the common man for redressal. — Sukhwinder Singh Sukhu, state Congress president

Despite financial constraints, the government has done a good job though there is a need to create more jobs by also roping in the private sector. The Skill Allowance Scheme for educated youth has been well received. In the coming days, the government is likely to take some major initiatives like creation of a Skill Development Council, which will focus completely on creating jobs. The recent investors’ meets was a step towards creating jobs in the remote and rural areas. — Vikramaditya Singh, state YC chief and CM’s son

It’s a government full of contradic-tions and indecision, with no accountability of the ministers or bureaucrats. No decision has been taken on the site of AIIMS or even the Central University in Kangra. The Congress has failed to fulfill the promises made in its manifesto. It is toeing the line of BJP on the issue of opening of private universities.— Mahender Nath Sofat, Himachal Lokhit Party spokesperson

The issue of financial crisis is a very grave one. Had the BJP or any other party been at the helm of affairs, the situation would have been no different. The government should convene an all-party meet to create public opinion and jointly all of us can put pressure on the Centre to protect the interests of the people of the state. — Rakesh Singha, former CPI(M) MLA