Issues regarding Industrialisation in West Bengal Industrial land Use

The dismantling of the industrial licensing regime accompanied by various
other liberalization policies from the early 1990s has given the State an opportunity to
boost industrial growth, private investment and employment generation and at the
same time, has created an environment of competition among different States. This
has put a tremendous responsibility on the State Government to adopt appropriate
steps in order to bring about rapid industrialization in West Bengal. Aware of the
opportunities for industrial growth likely to be created in West Bengal, the
Government of West Bengal has been pursuing policies for overall economic
development of the State with a view to achieving growth with equity and social
justice. The State’s Industrial Policy was announced in 1994 with an aim to achieve a
faster industrial development. It encourages private sector investment and envisages
the role of Government as a facilitator of this process.

It should first be noted that the State Government’s policies for land reform
from the late 1970s have made a significant impact on the stagnant food production
scenario. The average annual growth of food output1 during 1980-95 was 5.03 %
compared to 1.22 % during 1970-80. However, the rate of growth of agricultural
output over time has been affected by increasingly dwindling size of per capita
holding of farm land which has come down from 1.20 hectares in 1970-71 to 0.82
hectares in 2000-012, and is thus proving to be economically unviable to sustain a
family. The average size of land holding appears to be one of the smallest amongst the
states and much below the national average of 1.41 hectares.

The recent growth path of the West Bengal economy depicts a picture of
falling share of agriculture in total SDP (State Domestic Product)3 from 27.48% in
1999-2000 to 21.82% in 2005-06 followed by a relatively steady growth of secondary
sector from 14.85% to 16.93%. The share of the tertiary sector has increased from
52.27% to 56.17% over the same period. At the same time, it is felt that the increase
in the services sector cannot be sustained over a long period without an increase in
manufacturing activity.


The last decade had witnessed a steady growth of SDP in the State with all the
key sectors including infrastructure having recorded a significant growth over the last
10 years. The SDP1 recorded a compound annual growth of 7.07 % during 1993-94 to
2003-04 as against the all India GDP growth of 6.23 %. However, in the last two
years, the rate of growth of the State has fallen slightly behind the all-India rate. The
rural economy has witnessed a phase of distinct shift in occupational pattern and life
style which is reflected in the pattern of per capita consumption of non-food items and
also an increasing aspiration towards school and higher education.

The 2001 census reveals that there has been a shift in the occupation pattern of
the main workers in relation to 1991 census data thereby reflecting diversification in
economic activities in the rural economy. The share of cultivators in total main
workers decreased from 30.2 % in 1991 to 20.85 % in 2001. While the share of
agricultural labourers has remained more or less static around 22.7 %, the same for
other workers has increased from 44.3 % to 52.7 % during the same period.

Growth of Industry in West Bengal, post 1991

From 1991 to 2006, 1,439 projects in the medium and large industry sector
involving an investment of Rs. 32,632 crores have been implemented in the State.
The number of industrial approvals granted by the Secretariat of Industrial Approvals,
Govt. of India, from January 2000 to December 2006 stood at 2858 with a proposed
investment of about Rs. 83,858 crores

It may be mentioned that for most of the industrial projects implemented in the
State, land for industries has been mostly purchased by the entrepreneurs directly
from the landowners. The State Government has in recent times also attempted to
carry out direct purchase of land for setting up industrial clusters. The process of
obtaining land through direct purchase has shown a mixed outcome.

The process of direct purchase adopted by the State Government was to set up
a consultative process involving local representatives and local district officials, to
identify land, and develop a consensus on the price of the land. The actual process of
purchase began after such a consensus was reached at. This process yielded the
desired results in the case of the Food and Poly Parks at Sankrail in Howrah district,
the Plasto-Steel Park at Barjora in the Bankura district and industries in Khargapur.


However, the same process ran into problems in the case of the Foundry Park and
Rubber Park in Howrah district due to resistance from various private interests which
had already purchased some of the identified lands across the project area and along
the roads. The inability to buy these plots through direct purchase meant that the road
frontage of the industrial park and contiguity of the plots were adversely affected.
Finally, in order to complete the process of arranging the land, the Government had to
take recourse to the LA Act, to acquire the intervening plots and plots abutting the
road.

However, the State Government’s assistance in the form of acquisition is
required in the case of large projects, where the requirement of land is large.
Examples are the Tata small car project, and the various steel plant projects in the
pipeline. Similarly, in today’s competitive environment, the Small and Medium
Enterprises (SMEs) need to reduce their cost of operation, thereby helping them to
function in a competitive manner and at the same time comply with environmental
norms. Therefore, setting up of small industrial clusters for SMEs, with shared
common facilities, enhances their competitiveness. Government has to step in to
acquire the land and set up these clusters with the necessary common facilities and
infrastructure.

At the same time, many of the existing SMEs may run into environmental
problems in their existing locations, which have become urbanized. Since these
industries would need to relocate to new, environment friendly industrial parks and
obtain environment clearance, it becomes necessary for the State Government to assist
them in the acquisition of land.

There has been a significant investment in the IT and ITeS sectors in West
Bengal. Major players such as Infosys, Wipro, ICICI Bank, ITC Infotech and foreign
companies have evinced interest in setting up IT and ITeS facilities, and most of them
wish to locate in the Greater Kolkata area. Since it is accepted that this sector is also
an engine of growth and employment, the State Government also has to arrange land
in the Greater Kolkata area for this sector.

The projects in pipeline involving large investments in manufacturing sector
for setting up modern and environment friendly production facilities will require large
tracts of land. Moreover, it is always not possible for every industry to locate in a
particular site. Decisions regarding location are based on a number of factors. In
addition to availability of land, quality infrastructure in terms of road and rail
connectivity (as well as proximity to a port for many industries), adequate supply of
water and power, as well as proximity to markets and urban centers are required for
successful implementation of projects within a definite time frame. In order to avoid
the complicated process of purchase of land from a large number of owners and
compliance with existing land laws of the State especially pertaining to land ceiling it
may be necessary for the State Government to acquire the land required to set up
industries.

In the last few years, the State Government has been assisting entrepreneurs to
obtain land through the process of acquisition as well as direct purchase. The State
Government acquired 2102.39 acres along with direct purchase of 1934 acres of land
for setting up industries in the last three years.

In West Bengal, the net sown area1 is 62 % of total reported land area while
another 13.48% in under forest, and 18.52 % is already under non-agricultural use.
The total land in the categories of barren and uncultivable land; permanent pasture
and other grazing land; land under trees and groves not covered in net sown area; and
culturable waste land together add up to 1.42%, (of which culturable waste alone is
0.40 %). For the country as a whole, the percentage of net sown area is 46.07%, while
the percentage of land under categories of barren and uncultivable land; permanent
pasture and other grazing land; land under trees and groves not covered in net sown
area; and culturable waste land together add up to 15.41% (of which culturable waste
is 4.46%).

To minimize usage of agricultural land for industrial use and to achieve a
balanced and sustainable industrial growth, the State Government is seeking to
implement a policy for location of industries in a manner so as to maximize use of
uncultivable land, locate industries in backward areas of the State, develop industrial
clusters thereby using common infrastructure and optimizing available resources. The
State Government is conducting a field survey on the vested land available as per
records and assessing its viability for industrial usage keeping in view its size,
location, contiguity and availability of infrastructure. The State Government is also
trying to use the land locked up in closed and sick industries keeping in view the legal
issues and other complications.


A Policy for Location of Industries:

In pre-independence times, the industrial development in West Bengal centered
around Howrah, Hooghly, Asansol and Barrackpore due to connectivity through rail,
road and river and availability of raw materials. In North Bengal, industrial
development has been mostly confined to tea industry and some food processing
activities in Darjeeling and Jalpaiguri. Thereafter, industrial growth has concentrated
first in Durgapur and then in Haldia. That Haldia would develop as one of West
Bengal’s largest industrial areas was clear once it was decided, in the late 1960s, to
set up the Haldia Dock Complex. Proximity to a port has always been a major factor
in deciding location of large industries.

In order to facilitate planned industrial development, some industrial parks
have in the meanwhile already been developed by the State Government such as
Kolkata Leather Complex; Shilpangan in Salt Lake for light engineering goods;
Paridhan - the Garment Park in Beliaghata, for apparel and garment manufacturing
units; Manikanchan SEZ in Salt Lake for gems and jewellery units; Food Park and
Poly Park in Sankrail in Howrah district; and the Plasto-Steel Park in Barjora in
Bankura district. It is estimated that more such planned industrial parks are required
to accommodate medium sized industries of the State. Growth Centres, i.e., large
industrial estates, have been set up at Kalyani, Kharagpur, Falta, Uluberia, Haldia,
Bishnupur, Raninagar, Dabgram, Malda, Cooch Behar, Jalpaiguri and Bolpur.
Similarly, the MSE&T Department has set up industrial estates in different parts of
the State for the small-scale industries. More such parks are planned by the C&I
Department and the MSE&T Department.

In order to create a balanced and sustainable industrial growth in the State and
maximize the use of uncultivable land in the State, it is felt that some parts of the
State can be identified as industrial growth poles, because of factors such as
availability of non-agricultural land, historical industrial presence, and availability of
good infrastructure. This will mean optimal use of the existing industrial
infrastructure, and upgradation of infrastructure where required, and facilitate/create
new industrial infrastructure for projects in backward areas.

It is proposed by the State Government that these focal areas of industry can
be: (i) Haldia; (ii) Asansol-Durgapur and contiguous areas of Bankura and Purulia
across the Damodar river; (iii) Howrah-Hooghly; (iv) Barrackpore; (v) Kharagpur-
Jhargram; (vi) Siliguri-Jalpaiguri; and (vii) Kalyani. At the same time, it is also
proposed to develop small industrial clusters in all districts of the State to meet the
requirements of the SME sector and to create employment opportunities in all
districts.

1 Estimates of Area & Production of Principal Crops in West Bengal, 2002-03
2 Agricultural Census Report, 2000-01
3 Annual Review of West Bengal Economy,2004-05,CMIE
4 Annual Review of West Bengal Economy:2003-04
5 Annual Report, Commerce & Industries Department, Govt. of West Bengal
6 Status on Land, published by the Land &Land Reforms Department, Govt. of West Bengal

SOURCE: www.wbidc.com

CHANGING PHASE IN WEST BENGAL

West Bengal charts its unique path

to progress and prosperity,

despite impediments.

IN 2001, when Buddhadeb Bhattacharjee was chosen to succeed the veteran Marxist Jyoti Basu as the Chief Minister of West Bengal the change of guard itself was perceived as a change of government. And when the Communist Party of India (Marxist)-led Left Front won the Assembly elections by an overwhelming majority for an unprecedented sixth consecutive time, defying the anti-incumbency factor, "do it now" became the new buzzword and the air was full of hope and promise.

Suddenly, West Bengal became the happening place; it was no longer a "graveyard for industries" or the last choice of an investor. Cynics just sat back and watched the process of transformation.

The State registered a consistent growth in real State Domestic Product (SDP) at over 7 per cent in the last few years. Despite being one of the most populous States in India, with the highest population density, it is ranked high in terms of growth in per capita income. In 2004-05, it achieved a growth in per capita income of 5.72 per cent, as against the national rate of 5.2 per cent recorded in the same period. A look at the industrial approvals and investments over the last 15 years will give a fair idea x about the rising popularity of the State among entrepreneurs.
The number of approvals of the Industry Entrepreneur Memorandum (EIM) indicates a rise from 99 in 1991 to 410 in 2005. The number of projects implemented has increased from 26 in 1991 to 227 in 2005. Foreign direct investment (FDI) in fiscal 2005-06, according to the Annual Report of the State government, was worth $119 million. The investors included those from the United States, the United Kingdom, Germany, Japan, Switzerland, Singapore, Malaysia and Hong Kong. Significant achievements have been made in the traditional sectors of iron and steel and petrochemicals and in the sunrise sectors of Information Technology (IT) and IT-enabled services.

The growth of the iron and steel industry in the State can be attributed to certain inherent advantages it enjoys, that is, proximity to raw materials, skilled manpower, port facilities, sufficient availability of power and a huge market for steel products. From 1991 to 2004, as many as 243 new iron and steel units were set up in the State. In the past four years, 108 projects were implemented. Some of the major players in this sector are the Durgapur Steel Plant and the Alloy Steel Plant of the public sector giant Steel Authority of India Ltd (SAIL); Electro Steel Casting, the largest producer of spun-iron pipes in the subcontinent; Gontermann Peipers, the second largest producer of iron- and steel-based rolls in the country; Bhushan Ltd, and Vesuvius India Ltd. The State government has devised a number of policies to encourage the growth of this sector, with a focus to achieve global competitiveness not only in terms of cost, quality and product mix, but also in efficiency and productivity.

INDUSTRIAL HUB

In Haldia, the port city which caters to national and international giants such as the Indian Oil Corporation, Haldia Petrochemicals Ltd, Mitsubishi Chemical Corporation, Hindustan Fertilizer Corporation Ltd, Tata Chemicals and Exide Industries, a mega chemical industrial estate, spread over 10,000 acres (1 acre = 0.4 hectare) has been proposed. The Salim Group of Indonesia is slated to start a multi-product Special Economic Zone (SEZ), spread over 12,500 acres, in near Haldia. The other industrial hubs of the State include the Kolkata Metropolitan Development Area, the mineral-rich Asansol-Durgapur region and Kharagpur, which is home to a large number of engineering industries.

Seeking to tap the enormous potential for growth in the biotechnology sector, the West Bengal Industrial Development Corporation (WBIDC) is planning to set up a Biotechnology Park in Kalaikunda near Kharagpur in collaboration with the Indian Institute of Technology -Kharagpur. The State has traditionally had a climate conducive for the growth of engineering industries. Apart from Hindustan Motors, which entered into a collaboration agreement with Mitsubishi of Japan recently, Tata Motors is expected to start its small car-manufacturing unit at Singur in Hooghly district. The Tata project is expected to give a shot in the arm to the State's industrialisation drive, by facilitating the development of first-tier ancillary units that will supply components necessary for x car production. The Tatas will be setting up an equipment-manufacturing unit in Kharagpur.

Other companies such as Ashok Leyland have also evinced interest in setting up manufacturing units in the State. Another important project is that of the Salim Group's motorcycle plant at Uluberia in Howrah district. The Calcutta Leather Complex, spread over 1,100 acres at Bantola, became operational in July 2005, with its infrastructure including a common effluent treatment plant and a common chrome recovery plant. More than 160 tanneries have either completed or are close to completing construction work. As of mid-2006, 75 tanneries were operational, of which 32 were new ones. It is important to note that West Bengal is one of the leading States in the export of finished leather goods, accounting for almost 25 per cent of the country's leather exports.

The State government is also actively promoting micro and small industries in handicraft, handlooms, textiles, sericulture, khadi and village industries. Over 314,000 registered small enterprises operate in the State, employing more than two million people. The State government has adopted a multi-pronged strategy that offers a mix of institutional, marketing and infrastructure support to the sector.

Apart from rail, road and air connectivity to the rest of the country and prime locations of the world, West Bengal has two modern ports located in Kolkata and Haldia. Together they handled 52.03 million tonnes of cargo in 2005-06, the second highest in the country. The ports are being modernised. A new 3,000-acre port-cum-SEZ, in collaboration with Peninsular & Oriental Ports Ltd, is being planned at Kulpi.

SOCIAL INFRASTRUCTURE

As far as social infrastructure is concerned, the State with its public and civic amenities, and its rich heritage of art, education and culture, offers several educational and social opportunities. West Bengal's educational network consists of more than 66,925 primary schools, 3,159 secondary schools and 9,659 high schools and higher secondary schools. The number of Sishu Siksha Kendras, as on November 2005, stands at 16,117. Apart from important institutions such as Calcutta University, Jadavpur University, the Presidency and St. Xaviers colleges, IIT-Kharagpur, The Indian Institute of Management, Kolkata, and the Indian Statistical Institute, Kolkata, the State has eminent research institutes such as the Saha Institute, the Bose Institute, the Indian Association for Cultivation of Science and the Indian Institute of Chemical Biology.
Census 2001 estimated West Bengal's literacy rate at over 69 per cent as against the national average of 65 per cent.

The State's health care industry is competitive in terms of cost and quality, and is rapidly emerging as a destination for foreign medical tourists. West Bengal's network of health care facilities comprises 433 government and non-government hospitals, and 12,057 health units. There are nine medical colleges in the State and a Health City, which will have medical colleges, nursing institutions, technical training centres and hospital management schools, is being constructed near Kolkata. The State has performed x well in the area of improving life expectancy at birth. According to West Bengal Economic Review, 2005-06, life expectancy at birth stood at 66.08 per cent for males and 69.34 per cent for females, as against the national figures of 64.11 per cent and 65.43 per cent during 2005-06.

RAPID URBANISATION

With the steady economic growth in terms of net SDP and per capita income, which has resulted in the creation of higher disposable incomes for a large number of people, it comes as little surprise that West Bengal is the third largest State in terms of savings with commercial banks x accounting for around Rs.854.8 billion. With 60 per cent of the population under 30 years of age, the trend is towards rapid urbanisation. As per Census 2001, the urban population of West Bengal is around 28 per cent, as against the national average of 27 per cent.

All these factors, along with the rise in income level and the unprecedented growth in the service sector, which alone accounts for 57.15 per cent of the SDP, have naturally created greater expectations among people for quality goods and services. Apart from Kolkata, which has a consumer profile of around 10 million, urban markets such as Siliguri, Durgapur, Asansol and Maldah have been showing an upward trend.

The growth in the retail sector has encouraged the mushrooming of swanky shopping complexes and malls, particularly in Kolkata. Retail giants such as Pantaloons Westside, Emami, Shoppers' Stop, Forum and Big Bazaar have set up shop in the State. This has not gone unnoticed by global players such as the French Carrefour, the German Metro AG, and Wal-Mart and McDonald's of the U.S., who are waiting to grab a piece of the retail pie.

There is also an upsurge in real estate business. New townships are being developed to meet the increasing demand in the urban housing sector. The State government has formed eight joint venture companies to expedite housing projects. Apart from New Town, a project spread over 3,075 acres and developed by the West Bengal Housing Infrastructure Development Corporation, the Salim Group is setting up the Calcutta West International City, considered to be one of the largest foreign direct investments in township projects in the country.

The shift in the lifestyle of the urban population is evident in the array of entertainments on offer before them. The city abounds in coffee shops, multiplexes, health clubs, fitness centres and multigyms. Kolkata has a vibrant nightlife in discos, hookah bars and clubs. Large flyovers have come up to ease the pressure of vehicular traffic, which is growing at approximately 11 per cent a year. Kolkata is no longer a city of traffic snarls.

RURAL MARKET

Some major changes are taking place in the rural markets too. The huge potential of this sector has started attracting investors, and the State government is examining proposals from corporates to take up procurement and marketing of produce in a big way.

This will throw open business opportunities in this emerging sector and result in an increase in the purchasing power and consumption profile of rural areas. Agriculture in West Bengal is characterised by two unique features x land reforms and devolution of effective executive and financial power to the elected panchayat bodies. This has revolutionised productivity and growth, leading to equitable distribution of rural wealth. The six agro-climatic zones of West Bengal offer extensive and varied environs for the development of temperate, subtropical and tropical produce, both agricultural and horticultural. The State has achieved significant growth in agriculture in the past decade. It is the largest producer of rice and the second largest producer of potato in the country. It also produces around 0.25 million tonnes of fruits and over 10 million tonnes of vegetables annually.

At the Mullickghat flower market near Howrah

Bridge, vendors arrange seasonal flowers.

The consulting firm McKinsey and Company has asserted in its Vision Document for West Bengal, that the State should aspire to be the food bowl of India by 2010 owing to the self-sufficiency it has achieved in critical food crops and the leadership it has assumed in the production of a wide range of agricultural produce. The State accounts for 10 per cent of the country's edible oil production; it is the largest producer of fish and produces substantial quantities of spices, coconut, cashew nut, arecanut, betel vine and oilseeds.

Agro and food processing industries form an important part of the State's economy. A study conducted by the Government of India estimated that the investment potential in the food processing industry in the State is Rs.154.52 billion over the next 10 years. The State government is devising policies and plans to increase production of vegetables, fruits, rice, poultry, dairy and floriculture.

Some of the key investors in the food processing industry are AsconAgro PE & B Pvt. Ltd, a Pailan Group company, which has entered into a joint venture with AFT/PB Counsiel of France to set up unit in Dhaniakhali, Hooghly, to produce potato flakes; Dabur Ltd, which has set up its unit in north Bengal; Frito-Lay, a division of PepsiCo, which has set up a potato processing unit in Howrah district; and Arambagh Hatcheries, which was set up in 1975 and has grown by over 30 per cent annually. Unilever and Nestle have also expressed interest in setting up food processing units in the State.

West Bengal is also a unique State in that it has practically all landscapes that are required to make it a tourist hub - the Himalayas, the beaches, forests, the Sunderbans, tea gardens, historical sites and places of worship. The State government is sparing no effort to tap this potential. West Bengal is a safe place to be in since the law and order situation is well under control. The State has a long tradition of tolerance, which has resulted in communal harmony and a near-total absence of caste prejudices.

Article written by SUHRID SANKAR CHATTOPADHYAY,

published in FRONTLINE,

Volume 24 - Issue 02

:: Jan. 27-Feb. 09, 2007

Buddhadeb Bhattacharjee: "It is not agriculture vs industry, it is from agriculture to industry' ,

'From
agriculture
to
industry':

Interview
with
Chief Minister
Buddhadeb
Bhattacharjee

CHIEF Minister Buddhadeb Bhattacharjee has many facets to his personality. He is perceived as a man with a mission to overhaul West Bengal's economy and bring back its past glory. "It is my vision that West Bengal assumes its rightful place at the top in the fields of agriculture, industry, education, science and culture," he said in an interview to Frontline, published in Jan. 27-Feb. 09, 2007 issue. Interview taken by Suhrid Sankar Chattopadhay. Buddhadeb spoke about the recent problems and criticisms his government faced, its policies and the need to move quickly from an agrarian economy to an industrial one. Excerpts from the interview:

Q:Last year's Assembly elections set at rest all suspicions and allegations of electoral malpractices and rigging in the State. It was an overwhelming mandate for Buddhadeb Bhattacharjee. Please share with us your vision for West Bengal.

Buddhadeb Bhattacharjee:

First of all, it was not a mandate for just Buddhadeb Bhattacharjee. True, I led the election campaign and the electoral battle, but it was a mandate for the Left Front, for its programmes and policies. Individuals matter but only a little. Looking back on what we have accomplished so far, we realise we have consolidated our success in agriculture. We have attained self-sufficiency, particularly in rice, vegetables and fish, and have been able to guarantee food security. It is now high time we moved from agriculture to industry.

I would like to elaborate a little here. Some people think that we can continue with only our success in agriculture; we can improve the economy of the State only through agriculture; even the problem of unemployment can be solved through agriculture. I don't think this is possible. We are right now in a transitional stage; based on our success in agriculture we are moving towards rapid industrialisation. Agriculture alone cannot create new job opportunities and move the economy further. So, it is imperative to move from agriculture to industry; it is not agriculture versus industry.

It is my effort to develop both the manufacturing sector in the State and knowledge-based industries such as Information Technology and biotechnology. In the manufacturing sector, our priority should be SMEs [small and medium enterprises]. It is this sector that provides job opportunities, rather than big projects - take the case of ancillaries of automobile industries, or downstream industries related to the iron and steel major units. Although we are a bit of a late starter in industrialisation, we have managed to catch up with other States, and as far as IT is concerned, I think we are ahead of any other State. It is my vision that West Bengal assumes its rightful place at the top in agriculture, industry, education, science and culture.

Q:Is this vision shared by the other partners of the Left Front, notably the Revolutionary Socialist Party, the Communist Party of India, the Forward Bloc and all sections of the CPI(M)?

Buddhadeb Bhattacharjee: There is opposition from different corners. There is the extreme right-wing like the Bharatiya Janata Party and the Trinamool Congress, which are opposing us; on the other hand there is the extreme left-wing - the naxalites - who don't really understand anything and live in a fool's paradise. I do not take them seriously. And there is some opposition within the Left itself. Unfortunately, some of our friends in the Front fail to understand the situation. They don't have that vision. They feel what we have achieved is enough. They fail to understand that we cannot stand on that alone - landlessness is on the rise, it is getting difficult to get remunerative prices for agricultural produce because the cost of inputs in agriculture is increasing; in fact it is difficult to protect even the minimum support price. Therefore, it is now time to move from one stage to another. We must move towards industry; that is the general direction of all civilisations - from agriculture to industry, from villages to cities. Let me explain a little further - agriculture's contribution in the SDP [State Domestic Product] is around 26 per cent, that of industry is 24 per cent and the service sector 50 per cent. The service sector is doing fine. But the given ratio of agriculture and industry is not an indication of good health for the State's economy. Ideally, industry's contribution should gradually increase and that of agriculture decrease. This, my critics fail to understand. I am trying my best to convince them.

Q:It is not just your critics. A section of the general public, too, has not fully understood the reasons for the State's industrial drive. There is quite a lot of misinformation floating around too. What are you doing to allay these fears?

Buddhadeb Bhattacharjee: I admit there is some information gap. We have to work carefully and patiently. We have to tell the people the whole truth and take them into confidence, or we will not be able to achieve anything. But as I told you, some extremist elements who don't understand the real problems of our economy or the political condition of our country, and who don't even bother to find out, are trying to cause mischief. But I am not bothered about them, or bothered about some unwanted guests visiting our State and making provocative speeches. What I am concerned about is that the people don't misunderstand us, as it happened at Nandigram [local farmers violently agitated on the basis of a mere rumour of land acquisition]. That was a failure of the local administration and we failed to explain to the people what is being proposed there. What is a chemical hub? How did it all start?

It was the Government of India's decision actually. Eight States participated in a presentation, in which West Bengal topped the list as a destination for such a hub. Why Nandigram? Because it is near the Haldia port. But the people [of Nandigram] didn't know what it was about and the local administration, without discussing with them, without taking them into confidence sent a circular that created havoc. We have to correct our mistakes. We have to make the people understand that this project will be good for them and that we are trying to help them improve their standard of living.

Q:The Nandigram imbroglio may have been, to some extent, responsible for the Central government's re-thinking on Special Economic Zones. Do you think the Chinese success with SEZs and export-led growth can be replicated in India, and in West Bengal, in particular?

Buddhadeb Bhattacharjee: India should not follow any model or any country. The Centre evolved its SEZ policy without really giving much thought. It asked the State governments to decide how many SEZs they wanted. China started off with six SEZs, and the decision rested on the Central government there, not the provinces. In our case, each State sent a long list, and ultimately there were 400 SEZ proposals. Now the Prime Minister has realised that it was a mistake and hence a review has been called.

A question that should be asked is what is an SEZ for - real estate or industry? At least 50 per cent of the land in an SEZ should be earmarked for industry. It ended up becoming a real estate business and we are against that. The CPI(M) wants some amendments. In West Bengal we have at present three small SEZs - Manikanchan, Wipro and Falta Export Block. Now we are planning another four or five. For this, we first have to consider the land required and the rehabilitation package for the displaced, and ensure that at least 50 per cent of the land is used for industry.

Q:The problems in Singur and Nandigram seem to have given an opportunity for naxalites to find a foothold in the State. How do you propose to tackle this?

Buddhadeb Bhattacharjee: I don't think so. First of all one should not equate what happened at Nandigram with Singur. As you know, Singur was the Tatas' choice. We showed them various sites, but they settled for Singur. We could not say no to such a project, otherwise it would have gone to Uttarakhand. It is important to note that in Singur, 95 per cent of the farmers voluntarily submitted their consent - it has never happened in any other part of the country. Some naxalites were trying to infiltrate into the villages. In Nandigram too, when the local farmers got agitated, naxalites tried to take advantage of the situation. I don't think we should take them seriously. They have no proper organisation, and ideologically, they are bankrupt.

Q:You had mentioned in an interview earlier that education and health care in the State needed further development. What is the position now?

Buddhadeb Bhattacharjee: The overall situation has improved. The number of schools has increased and the number of dropouts has come down. We provide midday meals in all the schools. These are the good features. But last time, I remember telling you that it was the quality of teaching that was my main headache. We have started a project to provide on-the-job training for teachers in all the primary schools. This will be an in-built mechanism in all the schools, where Key Research Persons will impart training to teachers throughout the year. We have just embarked on this project so it will take a couple of years for the results to show.

As for health, we are trying our best. It is a huge infrastructure to overhaul. But if we can improve the quality of the primary health centres in the rural areas, we will have achieved quite a bit. We are working at improving the health infrastructure and administration at the district level, and at the same time, trying to create a few centres of excellence in Kolkata. There are also some proposals for opening private medical colleges in the State, but first they have to meet the required conditions as set down by the Indian Medical Council.

Q:Your passion for literature is well known. Your translation of Franz Kafka's Metamorphosis was well received. Are you working on anything now?

Buddhadeb Bhattacharjee: I am not writing anything now. Very difficult to find time. But I do still try to find time for my reading, mostly late at night. I am a late riser [smiles].

West Bengal Left Front Government Safeguards The Interests of the People: Buddhadeb

ON the 30th anniversary


of the West Bengal


Left Front government,


the chief minister


Buddhadeb


Bhattacharjee


spoke at length to


Ganashakti.

Excerpts follow:

ON THE SIGNIFICANCE OF THE ELECTORAL TRIUMPH
The electoral verdict of the people is quite clear. The earlier two-thirds majority is now converted, thanks to the people’s verdict, to a three-fourths majority in the Bengal Assembly. We are determined to respect the choice that the people have exercised. We must implement our programme in the rigours of specificity and make the government function in an improved manner and with swiftness.

The continuity of success of the Bengal Left Front in elections and the absence of the anti-incumbency factor here is a rare event replete with political significance. Yet, Bengal is not bereft of the national-level problems and dysfunctionalities plaguing the nation per se.

Unemployment bothers Bengal as it does the rest of India. There is no power supply in 20 per cent of the Bengal villages and hamlets. Road conditions are not ideal. Some amount of problem continues in the health sector, we know. Certainly, these constraints would give rise to the strain of anti-incumbency.

How do we tackle the issue? Well, thanks to the massive waves of organised peasant movements and struggles, the correlation of proprietor ship of the agricultural land parcels have changed, in manner that would allow us to resist and overcome the gusts of anti-incumbency often fomented across the state.

LAND AND LAND REFORMS

You will recall that the land movement in Bengal started with the historic Tebhaga movement. During the all-too-brief tenures of the UF governments in the late 1960’s, an organised peasant movement was able to take over large chunks of illegally-possessed and ceiling-surplus land reposed among the jotdars-zamindars of this state.

Land was occupied and tilled with the ubiquitous plough by the rural poor. Lives of kisans were sacrificed during this period. The zamindari juggernaut was finally stopped and successfully dismantled.

On assumption of office, the Left Front governments in succession established patta rights for the landless and thus provided the kisan with legal right on the land he possessed and tilled. The recording of barga has been an important component of the land movement. The khet mazdoors lead and participated in a strong movement in Bengal. Taken together, these factors have contributed to make correlation of political force come to such a pass that we are able, as I said to tackle and take care of any form of anti-incumbency.

POPULARITY

This indeed is the base of the political power of the Bengal Left Front. No force is able to dominate the rural poor who have stood up for their rights. This is due to the sweeping, redistributive land reforms that Bengal has witnessed. Bengal enjoys unprecedented success in agricultural production. 65 per cent of the people of the state are directly or indirectly dependent on agriculture.

Another base for the Left Front is the popularity it has roused among the youth, and among the workers, the peasants, and in general amongst the rural and urban populace. The support has come up through the experience they have had of the pro-people governance of the Left Front governments in succession. The vast majority of the people of Bengal believe that there is no alternative to Left Front.

INTER-CONNECT BETWEEN LATIN AMERICA AND BENGAL
The situation evolving there in Latin America and here in Bengal is essentially different. Bengal is not a sovereign nation and has to work within the existing centre-state restrictive framework. But we do appreciate the alternative the Latin American countries have boldly put forward to neo-liberalism and globalisation.

British prime minister Margaret Thatcher once put out the slogan that there was no alternative to capitalism, acronymed as TINA or ‘There Is No Alternative.’ Latin America has proved that a viable alternative is very much there.

The Central Committee of the CPI(M) in discussing the developments in Latin American nations recently has noted the growth of the Bolivarian Alternative. The Central Committee will set up a Study Group to observe and analyse the happenings there. We shall identify the essence of Leftism prevailing in Latin America.

It is very important to note that the Latin American nations like Brazil, Venezuela, Bolivia, Uruguay, Argentina, and Ecuador, among others, appear determined to be free of the political, economic, and military hegemony of the United States.

LIBERALISATION AND BENGAL LF GOVERNMENT’S ALTERNATIVE
We have attached topmost priority to the task of providing security to the people being marginalised by the so-called liberalisation. We strive for increasing employment opportunities and enhancing levels of income. We do not agree to the view that market economy will run the government. We are against the concept that market economy is omnipotent.

We believe that the inevitable result of market economy is to immiserise especially the poorer sections of the people. Our government intervenes to protect the poor in the face of the onslaught of liberalisation because we are a government of the Left persuasion.

As alternative, we call attention to land reforms. The land belongs to the poor in the villages – 72 per cent of the agricultural land is under the possession of the rural poor. The rural poor also lead the three-tier Panchayat system and a series of diverse schemes of rural development are implemented.

We also lay emphasis on industrialisation, and on the extension of industries and trade-and-commerce. We welcome foreign capital in the realm of higher technology and for employment generation, militating against the jobless growth affecting the developed capitalist nations.

In stressing employment generation, we highlight the small and medium industries. We want to make the self-help groups improved micro enterprises. The principal aim is to involve the backward sections of the people, and scheduled castes, scheduled tribes, and women in economic activities.

Other alternatives include total literacy. We have created 68 thousand primary schools. We provide the salary and emoluments to the teachers, and we supply books and exercise books as well as mid-day meals to the students. Government hospitals take care of the treatment of 70 per cent of the ailing people as an alternative to the sweeping privatisation of health services elsewhere in the country.

We are determined to bring up the 20 per cent of the populace who remain below the poverty line. We have been working for the uplift of the poorer villages. We also look into the plight of the workers of closed factories. We provide them with stipends.

We have started Provident Fund benefits for workers in the unorganised sector. Construction workers have been provided with security. The Bengal Left Front government has initiated and unleashed these and other measures as an alternative to the so-called liberalism.

PEOPLE’S DEMOCRACY, July 02, 2006

West Bengal Chief Minister’s Intervention in NDC Meet

The following is the text of speech made by Buddhadeb Bhattacharjee, Chief Minister of West Bengal, at the National Development Council meeting held in New Delhi on December 19, 2007 for finalisation of the Eleventh Five Year Plan.

WE appreciate the convening of this 54th National Development Council meeting on finalisation of the document on Eleventh Five Year Plan (2007-2012). While broadly endorsing the approach of “inclusive growth” as elaborated in this revised Eleventh Plan document, I take this opportunity of drawing your attention to a few areas which have not been given due importance in the document.

Although it has been recognised in this document that reasons behind poverty of a person is his limited endowment of land, capital, labour and skill, yet no substantial commitment, except for passing reference, has been made to increasing the land endowment for the poor, i.e., to land reforms. I must mention that the impressive growth rate of 4-5 per cent in agriculture achieved in West Bengal over a period spread over more than two decades has been largely contributed by our vigorous implementation of land reforms programme, supported by provision of other non-land inputs such as irrigation, improved seeds, etc., by involvement of the local people through the Panchayats.

The findings of the 59th round of National Sample Survey data, which have been referred to in the document, point out that only 27 per cent of the total number of cultivator households received credit from formal sources. This is a matter of serious concern. To achieve the targeted 4 per cent growth in agriculture during the Eleventh Plan, we must assure that the kisan credit card facility is extended to every agricultural household with adequate disbursement of credit.

The plan document has very correctly identified the specific constraint for increasing productivity in West Bengal as flood/water-logging and improper drainage. The funding pattern of AIBP should be modified so as to provide central assistance in the form of grant to the extent of 75 per cent of the project cost to tackle the flood and water-logging problem as well as to extend irrigation facilities.

The scheme for Special Economic Zones (SEZs) requires a fresh look. Industry groups should be identified in the first instance which are to be covered under the scheme, instead of extending it to all and sundry. As the minimum land requirement is prescribed, there should be an upper ceiling of land as well for a particular type of SEZ. Within that ceiling, percentage of land area to be compulsorily utilised for industries as against other uses should also be carefully worked out and prescribed.

It is high time that the industrial incentive scheme of the central government is kept limited to North-Eastern states and Jammu & Kashmir only, as otherwise the neighbouring states have not been getting a level-playing field.

The investment in infrastructure has been proposed to be increased from 5 per cent of GDP in 2006-07 to 9 per cent by 2011-12. To achieve an annual growth rate of 9 per cent, we have to invest much more in infrastructure. It has been estimated in the document that to achieve the targeted annual average growth rate of 9 per cent over the Eleventh Plan Period, the aggregate capital formation in infrastructure over the same period should be to the tune of Rs 20 lakh crore, of which 30 per cent is to come from the private sector, directly as well as through PPPs, where desirable and feasible. In this connection, I would mention that the construction of Delhi-Kolkata dedicated railway freight corridor, the deep sea port and the shipyard as well as the modernisation work of the existing airport in the state needs to be expedited.

To achieve 10 per cent growth in industries sector, the manufacturing sector and particularly the micro and small enterprises (MSE) sector has been projected to grow at 12 per cent. The working group has estimated terms loan and working capital requirement for the MSE sector to the tune of Rs 2.96 lakh crore during the Eleventh Plan. It has been mentioned in the document that the percentage of net bank credit available to MSE sector has been declining. To meet the projected credit requirement for this sector we are required to have sufficient number of specialised SSI bank branches in all potential areas and devise appropriate ways to incentivise lending to this sector. Otherwise, it would not be possible to achieve the target of creating 70 million employment opportunities during the Eleventh Plan.

In this context, I would strongly suggest the need for revising the policy of high interest rate regime of bank loans to industry, particularly to the SME sector, and agriculture. Since the rate of inflation has been reported by the government of India to have fallen over the last one year or so, the rate of interest on bank loan should also be correspondingly reduced together with ensuring adequate availability of credit particularly for agriculture and industry. Otherwise, supply-side bottlenecks will be created which will not only stand in the way of employment generation, but may, in fact, lead to ‘cost-push’ inflation.

I would also mention that National Small Savings Scheme, which is of special social significance in encouraging saving propensity, as well as providing protection to savings of common people, should be protected in terms of attractiveness of all the major small savings schemes in relation to competing saving instruments.

In this context, I would like to point out that while there is a need for limiting the fiscal deficit of the states for ensuring long-term sustainability of their finance, applying the limit mechanically to the states regardless of their initial conditions would unduly restrict the resources mobilisation by the states for financing their annual plans with concomitant adverse impact on growth and employment generation, more so when the states are making serious efforts to improve their finances and deploy additional resources for social and infrastructure sectors.

We appreciate the increase in the proposed outlay under Sarva Shiksha Abhiyan (SSA) programme envisaged during the Eleventh Plan period. It would have been better if, in the interest of universalisation of secondary education and employment generation, secondary, vocational and technical education could also be brought within the scope of SSA and the sharing pattern between the centre and states be restored to the ratio of 75:25.

There was a commitment in the NCMP of UPA government for transferring with funds, the centrally sponsored schemes to the state subjects. This commitment may be fulfilled without further delay. To begin with, at least state-specific flexibility should be provided in the guidelines of all these schemes for paying adequate attention to the local characteristics of each state.

There has been a frank admission in the document that the previous 5-year plans have failed to include many disadvantaged groups, especially the Muslims, into the development net. I had advocated a sub-plan approach for the minorities in my submission before the NDC on December 9, 2006. I would still insist on this, since any half-hearted attempt will fail to bring about a significant change to their lot.

Adequate focus has not been given in the document on reduction of abject urban poverty. The allocation under Swarna Jayanti Sahari Rojgar Yojana (SJSRY) and particularly that under the wage employment component of the programme has been too meagre. It requires massive enhancement to make even fractional dent on urban poverty.

While giving my response on the Approach Paper to the Draft Plan, I had mentioned that the Sunderban delta with its fragile eco-system and the three international rivers – the Ganga, the Teesta and the Ichamati should be treated on a separate footing. I had sought for central support for socio-economic development of Sunderban region, tackling the gigantic problem of Ganga-Padma erosion, the Ichamati drainage problem with cross-border implications and for early completion of Teesta project. I take the opportunity to reiterate my demand on these issues.

In the end, I would mention that if, with joint efforts of the centre and the states, Goods and Services Tax is introduced in the centre and in the states, then there may be revenue gains towards the end of the Plan period, with corresponding implication for the size of the Eleventh Plan.

THIRTY YEARS OF SUCCESSFUL LEFT FRONT RULE

30 YEARS OF SUCCESSFUL
LEFT FRONT RULE

M K Pandhe

On June 20th 2007 the Left Front Government completed 30 years of continuous rule defending the interests of the toiling people in West Bengal. Within the framework of the capitalist system, no party in India could overcome the anti-incumbency factor for such a long time in any state since independence. There is no example of any left party remaining in power in a province of any capitalist country in the world for such a long time.

This unique experience in West Bengal needs to be studied properly. Despite discrimination by the ruling party or combination of parties at the centre, the Left Front Govt. continued to develop the economy of the state despite all limitations of the capitalist system and made a mark of its own in the national situation. Defeating all conspiracies to topple down or weaken, the Left Front Govt. in West Bengal could raise its head high with the determined support of the people of the state.

Left Front Govt came into being in the process of prolonged struggles by Left forces with the people and for the cause of common people's life, livelihood and democratic rights. With "Operation Barga" it introduced genuine land reforms in the state for the first time in the country. Lakhs of share coppers got their right to till the land which resulted in remarkable improvement in agricultural productivity as well as expansion of rural market. Since it came into being in the process of struggle by the toiling people, people remained with Left Front and It has been the massive support of the rural masses that sustained the Left Front Government in Bengal for three decades, mocking at the lousy noise of so called "scientific rigging". The successful introduction of Panchayati Raj empowered the rural poor to have a role in developmental activities in the State. It cannot be a fault of the Left Front Government that the opposition parties could not get even candidate to contest election against the left front candidates in some places! The Panchayati Raj in Bengal even attracted some foreign countries who sent representatives to study the operation of the system in the State.

The total number of beneficiaries of agricultural land distributed among the land less in Bengal is now 29.14 lakh. The total number of recorded share croppers have now reached 15.08 lakh.
In a memorandum to the 53rd meeting of the National Development Council on Food and Agriculture held on May 29, 2007 at New Delhi the Govt. of West Bengal noted, "In our state, the total production of rice, despite the adverse effects of floods, has been estimated to reach 144 lakh tones in 2006-07, which is higher than the requirement of the State (presently 139.6 lakh MT) and West Bengal occupies the first position in the States in production of rice. Moreover, the production of potato is also estimated to reach 77 lakh MT which is again much higher than the requirement of the State (43.4 lakh MT) and in this regard the States position is second among the states. In addition the total production of vegetables is estimated to increase to 125 lakh MT which is substantially higher than the states requirement (86.7 lakh MT) and in this case also, West Bengal occupies the highest position among the States".

The Left Front Government came in a wake of several struggles conducted by the working class and the toiling masses in defence of their rights. With intensification of class struggles in West Bengal the ruling Congress launched a severe repression on the trade union and democratic movement in early seventies. During the semi-fascist terror launched by the Congress party more than 1200 trade union activists had to lay down their lives braving the attacks by the gangsters and police. Several thousands of activists were evicted from their residential areas and had to take shelter in far away places.

The holding of regular elections in all elective organizations/institutions ensured the democratic process to empower the people and gave them a voice to elect representatives of their choice. The left front Government proved its growing popularity not only in Assembly and Parliamentary polls but in Municipalities and Gram Panchayats. Despite attempts to form Mahajot combining all anti-Left forces, the left front Government continue to win support of the people in the State. The bankruptcy of the Congress policies in the state has brought its strength down to a lowest possible level. The Congress party which ruled the state for several years has become a smaller force than even the Trinamul Congress.

The Trinamul Congress with the backing of lumpen elements and financed by dubious sources has repeatedly tried to destabilize the Govt but failed miserably. Instead of achieving the dream of entering writers building Ms. Mamata Banerjee lost her support among the people. Her ranks are deserting her seeing her maverick policies which only is making her more violent and resorting to gangster methods to prevent further erosion. Her unreliable political behaviour is making her allies skeptical about her policies. The BJP got some foothold in Bengal due to Mamata Banerjee's support to the communal outfit. Within erosion of her own influence in the state politics BJP is facing difficulties to mark its presence in the state politics.

When the Left Front came to power the opposition combine and the press in Bengal initiated a virulent campaign that due to the role of CITU in the state, the industries would not come to invest in West Bengal. They also were campaigning about sickness of large number of companies in the state which they ascribed to the militant trade union movement in Bengal. As a matter of fact most of the units became sick during the Congress regime and refusal of the Central Government to give orders to public sector units in the State and their discriminatory policy against the state.

WHY INDUSTRIALISATION?

Decades of Congress rule brought in widespread industrial stagnation in West Bengal. On the eve of independence West Bengal was second in industrial development which came down fifth due to this policy. After achieving land reforms it was now an urgent task before the Left Front Govt. to develop industrial base and generate employment for lakhs of new entrants in the employment market. Public sector investment came to a standstill due to the policy of neoliberal globalization adopted by the Central Governments. Naturally private sector investment came to the forefront. With the lack of resources with the state Govt. which is further aggravating owing to neoliberal policies, the Left Front Government had to rely on private sector investment. However when the Government adopted a policy of encouraging new investment in the state, the opposition parties made a common cause to oppose every proposal for starting new industrial activities in the state. Singur and Nandigram became symbol of opposition parties' resistance to industrial development. The unfortunate police firing on March 14 at Nandigram was regretted by all and the West Bengal Govt. gave up the proposal to establish a chemical hub in Nandigram; but still the violent agitation continued and law and order was thrown overboard. The proposal of the Left Front Govt. to hold talks to work out consensus on issues of development is being turned down only to continue a situation of lawlessness in the state.

The people will have to counteract such disruptive move of the opposition parties who have made a common cause to create difficulties in the process of industrial development. We are confident that the people of West Bengal will defeat the game of Congress Trinamul Congress, extremists and BJP to obstruct the process of industrial development without affecting the agricultural development.

SECRET BALLOT FOR UNION RECONGNITION

While making serious effort for employment generating investments in the state, the Left front Government never hesitated in upholding the rights of the toiling people including right to organize and right to strike. It was the first Govt. to pass a legislation in the Legislative Assembly providing secret ballot for recognition of a union in the industry. The central Government took more than several years to endorse the Bill and obtain presidential assent to it.

Even now the central Government has not provided through legislation the right of workers to determine their representative union through the mechanism of secret ballot. The desire to impose scab unions on the working class by the management is still preventing such a legislation at the national level. The Govt. of West Bengal did this three decades ago and honoured the commitment given to the working class.

The scheme to pay Rs.500 rupees per month for 6 months for workers who became jobless due to closure of their unit is a pioneering scheme initiated by the left front Government. Despite severe financial constraints, the Left Front Govt introduced provident fund schemes for agricultural workers and unorganized sector workers. The provision of payment of contribution by the state Govt. to the lakhs of unorganized workers in West Bengal is the testimony of its pro-people commitment. This is yet to be implemented by most of the UPA or NDA sponsored Governments in other States. The welfare Scheme for construction workers has also provided much needed relief to these unorganized sector of workers is also another significant step taken by the left front Govt.

While the majority of the working people all over the country are being subjected to repression and widespread violation of labour laws being indulged by the both the state and central administration, the Left Front Govt of West Bengal has always taken forthright stand in support of all the struggles of working class against such repression and violations and also passed a legislation to plug the loopholes of the labour laws for effective implementation. The West Bengal Assembly has already passed legislation containing provision for Recovery Officers to be appointed by the Labour Department for recovery of money due from an employer through attachment of properties, arrest of the employer and detention in prison etc. The legislation is still awaiting assent from the President. The Left Front rule did always remain with the toiling people in all the sphere of its governance which demarcates it from other non-left governments and such demarcation is the source of its strength - the continued support of the mass of the people.

A PASSING PHASE

B.T. Ranadive characterised the Left Front Government as revolutionary outposts of our movements. They fight for alternative policies to the Central Government and oppose the policies of globalization by the Central Government.

However, formation of Left Front Government is only a passing phase of our revolutionary movement. Within the capitalist framework the State Govt. has limited powers since all financial powers are within the Central Government yet the Left Front government is trying to give maximum relief to the working class and the toiling masses.

The ultimate objective of the working class movement is to strive to organize a peoples' democratic revolution in which working class will play a leading role. This will pave the way for building a socialist society, which will abolish exploitation of man by man.

The workers peasant alliance has to play a crucial role in such a revolutionary social transformation. The policies and programmes of the Left Front Government has to encourage the people to move in that direction.

Formation of Left front Government in one state or in a couple of states will not automatically lead to such a revolutionary transformation. The democratic movement must be strengthened in other weaker states so that revolutionary forces become stronger in these weaker states.
There is urgent need to pay attention to these aspects if the left movement has to acquire an all India character in real terms. The people oriented alternate polices pursued by the left front Govt should continue to demarcate it from others. Working class in other states should popularize the achievements of the left front Govts of West Bengal, Kerala and Tripura so that people are mobilized in defence of alternative policies. This alone will make the democratic movement achieve a popular character and develop a nationwide democratic movement for a real democratic change in the present exploitative social system. The strong movement in Left Front led states will be a powerful force to help strengthening of the left and democratic movement in other states.

The socio political developments in the country during last couple of decades point to that tremendous potential of the Left movement and the frontline role of the Left forces in the struggle against communal and divisive forces on the one hand and in combating the onslaught of neoliberal economic policies. In the present correlation of political forces, following defeat of the NDA regime and dependence of the UPA Govt on the Left parties, the contribution of the Left movement has been immense and our Left Front and Left Democratic Front Governments played crucial role in making such contribution effective. The Left-led governments in the three states of West Bengal, Kerala and Tripura are pursuing developmental strategies towards horizontal expansion of the economy based on simultaneous growth of agriculture and manufacturing; they are upholding the democratic rights of the toiling people. They are pursuing such a line, despite all limitations imposed by the policy framework of the government at the centre. Thus, they bear the stamp of clear demarcation from other non-Left-ruled states. This demarcation is the source of their strength to resolutely fight the designs of imperialism and neoliberalism.

In such a background, it is but natural that the right reactionaries, the real votaries of neoliberalism and their cronies, will not miss any opportunity of maligning the Left. Their design is to isolate the Left and weaken their opposition to disastrous neoliberal policies. We must analyse the post Nandigram developments in this backdrop. We have to realise in depth the real import of and the ulterior design behind the recent countrywide vigorous anti-Left tirade by the reactionary forces and counter the same. We must, however, patiently explain to the common people, the importance of the role of Left forces in maintaining and strengthening the democratic secular fabric of society and the political system and in advancing the struggle for a pro-people economic regime and the cruciality of the Left Front Govt's role in the same.

Let the left and democratic movement surge forward so that the objective of ending the present exploitative system by the toiling masses can be achieved as soon as possible.

Defence of the Left Front Govt. has become an important task before the revolutionary movement in our country!

Consolidate This Alternative

Consolidate This Alternative

SITARAM YECHURY

Editorial,
PEOPLE’S DEMOCRACY,
June 24, 2007


BY any standard, in fact, by all standards, the 30th anniversary of the CPI(M)-led Left Front government in West Bengal is a remarkable event. By winning seven consecutive elections to the state assembly, the CPI(M)-led Left Front has established a record not only in India but in any parliamentary democracy globally.

What is more significant is that this remarkable achievement comes at a time when ‘anti-incumbency’ has virtually been elevated to the status of a natural law in contemporary Indian electoral politics. Why has the CPI(M)-led Left Front been able to negate this anti-incumbency factor? One must find the answer to this question in the circumstances that, in the first place, create this phenomenon. In an era of neo-liberal economic reforms, whose unconcealed preoccupation is solely with increasing corporate profits, the people’s livelihood standards, barring a minority, are constantly declining. This is best seen in the continuously widening hiatus between the ‘shining’ and `suffering’ India. Through these columns, repeatedly in the past, we had substantiated this reality. These, hence, need not be repeated here.

The consequent popular discontent over the declining standards of living and the glaring and growing gap between the rich and the poor invariably reflects electorally in the defeat of the ruling dispensation. If the concerns of the poor and their vulnerability are addressed in right earnest by the ruling dispensation, then anti-incumbency is effectively negated. The liberalisation pundits have often dismissed this reasoning by taking recourse to hurling baseless charges of ‘scientific rigging’ against the CPI(M). This was resoundingly debunked in the 2006 elections when the Left Front polled more votes and won more seats under a very strict and unprecedented five-phase election. The Election Commission had chosen to depute on duty security forces and administrative personnel from outside of the state under the apprehension that those belonging to Bengal would be partisan. At that time itself, the CPI(M) had publicly declared that as long as voters are not brought from outside, people of Bengal will not defeat the Left!

How has Bengal been able to cater to the people’s needs while in much of the rest of the country, the onslaught of liberalisation has been generating growing popular discontent?

Let us take a look at the economic development in West Bengal.

In the post-reform decade between 1993 to 2003 the average growth of net state domestic product was 7.10 per cent – the highest amongst the sixteen big states in India. This is well ahead of the media favourities like Maharashtra (4.74 per cent), Gujarat (5.87 per cent), Karnataka (6.27 per cent) Andhra Pradesh (5.27 per cent) and Tamilnadu (5.24 per cent). This is from a study done by the Centre for Policy Alternatives quoting statistics from the Central Statistical Organisation, the Economic Survey and RBI bulletins. Studies by the World Bank (2000); Montek Singh Ahluwalia (2000) corroborate such findings. In terms of per capita income, West Bengal has registered an average growth of 5.51 per cent as opposed to the national average of 4.01 per cent. This has happened despite the fact that the annual population growth was 1.64, much higher than the high flying states like Tamilnadu (1.06). The study notes “without doubt, the seemingly uncontrollable and unabated migration, particularly from Bangladesh but also from Nepal and neighbouring states like Bihar and Orissa, has contributed to this relatively high growth of population. Whatever are the reasons for this we can only surmise that the rise in per capita income could have been higher if there had been no population influx into Bengal.”

The more significant aspect of West Bengal’s performance is the fact that this was a growth led by agriculture in complete contrast to the national experience. Land reforms are often seen purely from the humanitarian aspect of providing a source of livelihood for those who otherwise have none. This is definitely an important aspect. But a proper rational land distribution also contributes to a growth in productivity (both land and labour) and enhances the purchasing power in the hands of a vast majority of the people who otherwise are excluded from the market. All these three aspects are visible in Bengal today. Nearly 13 lakh acres of agricultural land was acquired by the Left Front government and distributed to the landless poor. Nearly 25 lakh of people have benefited as a result. Even if one were to assume the value of one acre of land to be a conservative Rs 1 lakh, then this land distribution amounts to Rs 1,30,000 crores of worth of resource transfer from the rich to the poor. Such a massive redistribution of wealth has contributed to making West Bengal the fastest growing rural economy today. In addition, nearly 20 lakh sharecroppers have been recorded; meaning that the landlord cannot now evict them. They have also been conferred hereditary rights to cultivation. Combined, these two measures have radically transformed the lives of nearly 50 lakh individuals or nearly 2.5 crores of people if we include their families.

Such a massive redistribution of wealth in favour of people is – not surprisingly – resisted by the reactionary vested interests who continue to seek its reversal. Every election an effort is made by all these reactionary forces to try and defeat the Left Front hoping that this would permit them to regain their past glory.

What is often passed off as murderous clashes of political rivalry in Bengal masks this reality. Land reforms in rural Bengal has given a new economic status and the consequent new social and political consciousness to the rural poor that was denied through centuries. Today they seek to defend these rights against attacks by the vested interests.

This is the reality. People support and defend the Left Front in order to defend their hard won rights. It is this simple truth that explains why, unlike anywhere else in the country, the Left Front continues to negate the “anti-incumbency factor”.

West Bengal is the third most intensely agricultural state in India with 76.61 per cent of its land under cultivation. However, only 28.1 of this is irrigated, unlike say Punjab which has 89.72 per cent land under irrigation. Despite this, Bengal today has the third highest average yield in India and its volume of foodgrains production is also third after Punjab and Uttar Pradesh. Today it is the country’s largest producer of rice. In the early eighties the per capita net agricultural product in West Bengal was 18 per cent lower than the national average. Today it stands over 10 per cent higher than the national average.

One may well ask if all this is true, then why all the trouble in Nandigram where it is alleged that the peasants are protesting their land is being acquired for industrial development. The issue in Nandigram, today, has nothing to do with the acquisition of agricultural land from the peasantry. In the initial weeks of 2007, there was a genuine apprehension and concern amongst the people that the government was considering acquiring land for a chemical hub. However, when the people’s reactions were noted by the CPI(M) and the government, in early February, it was publicly declared that no land will be acquired in Bengal against the wishes of the peasantry. Thus, the issue of land acquisition should have simply ceased to exist as a bone of contention. That the agitation is continuing with violence and free flow of arms is a reflection of the contemporary politics in Bengal.

The opponents of the CPI(M) had adopted a technique mastered over a decade or so of entering a cluster of villages with arms, terrifying local population in order to establish their clout and, on that basis, hope to improve their electoral prospects through terror. Much has been written about this in these columns, hence, it would suffice to note that this is a political challenge being mounted against the Left Front government and it shall be met politically like it was done earlier in Panskura, Garbeta etc.

Be that as it may, the situation in Bengal has reached a stage where a further improvement of people’s living conditions can be possible only if on the basis of the agriculture-led economic growth a trajectory of industrialisation takes place rapidly. This is so because as a result of land reforms and the subsequent fragmentation of land, a situation has arisen where more than ten families are dependent together on one single acre of land. This was noted when the number of people who collected their voluntary compensation was a whopping 12,000 for less than 1000 acres of land in Singur i.e. 12,000 owners for 1000 acres!

Clearly, the existing reality was such that many were eking out their livelihood not from land alone but by doing additional sundry work. Unless employment can be generated in a massive way, further improvement in their livelihood is not possible. And, this is precisely what the CPI(M)-led Left Front is seeking in Bengal today – rapid industrialisation.

However, much of the political opposition to the CPI(M)-led Left Front has often charged that under the Left Front government, no industrialisation is possible. The oft-repeated charge that under the Left Front, there was, in fact, deindustrialisation continues to be hurled even today while the same forces prevent the new initiatives for industrialisation that are being undertaken. Those who hurl such charges deliberately conceal the full story.

Being the most industrialised state at the time of independence, there was a conscious decision by the government of India that in order to have a more balanced economic development in the country as a whole, it was necessary to prevent further growth of industries in West Bengal. The licence-permit system ensured that this happened. Further, in order to make investment in West Bengal less lucrative, a policy called ‘Freight Equalisation’ was implemented which made production of similar goods in West Bengal more expensive than in other parts of the country. Both these measures deterred the further industrialisation of West Bengal for full four decades after independence. While the first prevented the entry of new industries, the second encouraged the flight of existing industries to outside West Bengal. To attribute this flight of capital merely to "trade unionism" would be too facile. This situation, however, is fast changing with the dismantling of earlier policies. The significant factor heralding such a change is the growing purchasing power of the people. Calcutta was once considered as the jewel of the British crown. Kolkata is destined today to emerge as the jewel of modern India.

The future of Bengal and improvement of the living standards of the vast majority of the people lies in this trajectory of rapid industrialisation on the bedrock of the unprecedented advances made in agrarian Bengal. This is not a trajectory of industrialisation at the expense of agriculture and the peasantry. This is industrialisation based on the consolidation of the gains made in agriculture and safeguarding the rights of the people in rural Bengal.

It is this that the CPI(M)’s political opponents in Bengal oppose through methods of armed violence and terror. The reason for their opposition is simple. If the Left Front succeeds, then it shall once again negate the anti-incumbency factor sealing the fate of their electoral and political future.

The challenge before the Left Front government as it completes its three decades is to show the rest of the country that even under the present liberalisation onslaught, it is possible to safeguard people’s livelihood and improve it on the lines of the above strategy. Herein lies the alternative for the people of India and the partial redemption from the continuously growing onslaughts on their livelihood status under liberalisation. The advance of this alternative strengthens the struggle for the complete liberation of the Indian people through the establishment of the Socialist Republic of India.

On Incidents at Nandigram

Statement by
Chief Minister,
Buddhadeb Bhattacharya,
in the West Bengal Assembly
on March 15, 2007
On Incidents at Nandigram

A proposal for setting up a mega-chemical hub and a multi-product Special Economic Zone (SEZ) over about 10,000 acres of land in Nandigram Police Station of Purba Medinipur district was under consideration of the state government. Though no final decision has yet been taken about the exact location of the projects, on December 29, 2006 an informal notice for public information regarding likely location of this project was circulated by the Haldia Development Authority to all blocks and Gram Panchayat offices of the area. This notice was by way of information only. No specific location of the project had yet been decided by the state government. Once this notice reached various block offices, there was massive resentment among those people who feared that their land would be acquired. A number of political organizations and parties formed a Bhumi Uchhed Pratirodh Committee. On January 3, 2007, an unruly mob of about 3,000 people attacked a police party under the charge of officer-in-charge, Nandigram police station and set fire to a police jeep. In another incident on the same day, another police jeep was set on fire at Garchakraberia Bazar. 23 police personnel also received injuries in these clashes. Three cases were registered in Nandigram police station over these incidents.

These incidents were followed by several meetings between the administration and the opposition parties in which it was clarified by the district administration that no notification for acquisition of land had yet been finalized. In spite of that, local feelings ran very high and a bandh was declared in Nandigram police station area on January 4, 2007. Following this, peace meetings were held in several places of Nandigram police station on January 6, 2007, but even after the meetings, the situation turned violent. In the night of January 6/ January 7, 2007 there was a major clash between two groups – one owing allegiance to the Bhumi Uchhed Pratirodh Committee and the other owing allegiance to the ruling Left Front. In this clash, four people, who were residents of various villages of Nandigram police station, were killed and two separate cases were started over this incident. This was followed by ransacking of CPI(M) Party Offices at several places and incidents of violence and arson at the residence of several local leaders of the CPI(M). The agitators also damaged many bridges and culverts and dug up several roads as a result of which, the movement of vehicles became impossible after January 7, 2007.

In a series of peace meetings convened by the district Magistrate, Purba Medinipur over this issue starting from January 8, 2007 it was unanimously decided that all parties would take necessary steps to restore peace in the locality and police camps would be set up at the disturbed places. Despite these resolutions, however, it was not possible to repair the damaged roads, culverts and bridges and it was also not possible to deploy the state police within the affected parts of the Nandigram police station. Despite several measures initiated by the district administration to restore peace, execution of all government projects and schemes came to a standstill since no government officer was allowed to enter the affected areas. Gradually, a number of people owing allegiance to CPI(M) had to move their places of normal residence in Nandigaram police station and take shelter in several temporary camps at Khejuri. Tension between the two rival groups kept on mounting. There were several incidents of violence between February 03, and February 06, 2007 in which fire was exchanged or bombs exploded between the rival groups. On February 07, 2007 a sub-inspector of police, Shri Sadhu Chatterji had gone to investigate a report received about destruction of road communication. He was waylaid by an unruly mob and killed. His dead body was recovered only on February 10, 2007. Over this incident also, a case was started but all these cases could not be investigated properly because the police was not able to enter the affected areas.

On February 11, 2007, the chief minister in a public meeting at a place close to the affected area made an open commitment that no land for setting up the chemical hub and SEZ would be acquired at Nandigram if the people of Nandigram were against such acquisition.

However, sporadic incidents of violence involving displaced people in the camps at Khejuri and the people of Bhangaberia and Sonachura areas of Nandigram police station continued. It was resolved in one of the peace meetings that both parties would maintain peace during the Madhyamik Pariksha (Class-X) which was going on. The Madhyamik Pariksha was over on March 5, 2007. The district magistrate, Purba Medinipur again convened an all-party peace meeting. In this meeting he proposed that peace should be restored, police should enter the affected areas of Nandigram police station, damaged bridges and roads should be repaired and normalcy restored to the entire affected areas. However, the representatives of the Trinamool Congress and the Indian National Congress did not attend this meeting.

It was decided that this law-less situation in Nandigram and its surroundings should not be allowed to continue, the damaged roads, bridges and culverts should be repaired without any further delay and police should take up the investigations in the cases of murder. Thereafter, police force was mobilized and it was decided that the force would enter Nandigarm through three separate routes under the leadership of senior offices. The police force was asked to exercise utmost restraint. They were further directed to use loud hailers to explain the purpose of the movement of the police party to the people of that locality which is to establish peace and restore normalcy.

Ultimately, the police movement started about 10.00 a.m in the morning of March 14, 2007. While one of the police parties could move into Nandigaram without any resistance two other police parties were confronted by large gatherings of hostile people. When the police asked them to disperse, they paid no heed and resorted to heavy brick-batting causing injury to some policemen. To disperse the mob, police lobbed tear gas shells. The mob them became more agitated and started hurling bombs followed by opening of fire. A few policemen sustained splinter injuries. To control the situation, police initially fired rubber bullets, but this, again, yielded no results. Ultimately, the police had to open fire in self-defence causing dispersal of the mob. This incident took place near Bhangaberia bridge. Another police party also met with violent resistance at Adhikaripara where heavy brick batting, bomb throwing took place. As a result, some policemen were injured. In both the incidents, 12 policemen including Additional S.P, Tamluk and Assistant S.P. (Probationer) received splinter injuries and injuries due to brick batting. Serious and extensive injuries could be avoided as all the policemen were in protective gear. However, a number of people were injured in the police firing and it is believed that some of the agitators were also injured by the bombs that they were hurling. Till 8.00 p.m on March 14, 2007, according to the report received at the State Headquarters, 14 people died including some critically injured people who succumbed to injuries. In addition, there were 63 injured people of whom 29 were shifted to Tamluk district hospital for treatment. 5 people were released after treatment to minor injuries and the rest were still at Nandigarm Rural Hospital to receive treatment or awaiting transfer to Tamluk Sub-divisional hospital. This is in addition to the 12 policemen injured in the incident who received medical attention separately.

Following the above incidents, there was no further organized resistance to the movement of the police party who were now able to move to Sonachura and establish a temporary camp there. Police was also able to reach a few other neighbouring villages. In course of police search, 8 illegal fire-arms were recovered which had probably been used against the police party.

There is high tension prevailing in the area but the situation is currently under control. Police camps have been set up in the disturbed area. Senior police officers are also camping and making efforts to restore peace.