Monday, April 26, 2010

SEZ – A SLOW RACING HORSE IN INDUSTRIAL SECTOR

The scheme of Special Economic Zone was controversial since its inception itself. However, after the declaration of the scheme in the year 2006, many companies were interested to establish their units under the scheme in the years 2007 & 2008. But, their interest has been slowed down during the previous year and many of them either wish to leave their projects or ask for the extension of period in completing it. Therefore, there is a necessity to analyse their change of minds in this direction. According to the official statement, so far 597 projects have been cleared in principle out of which 335 units are notified. Out of 335 units, some units are working and some units are under uncertainty.

Reasons for attraction towards SEZ.

After declaration of SEZ scheme, many companies were eager to establish their units under it and there were two three reasons for the same. The main attractions were the following :-

i. The zones established under the scheme shall get the benefit of 100% tax benefits including income-tax, and thereafter, for the next five years, there shall be tax concession of 50% and thereafter, 50% tax concession on the profit made from the zones for its reinvestment.

ii. The other point of attraction was that out of the land allotted
for establishing the industrial zone, only 35% should have to be utilized for manufacturing activities and the remaining can be utilized for Administrative Buildings and also for other activities.

iii. Further, the State Governments were ready to acquire the
land for SEZ directly from farmers.

In view of many concessions granted under SEZ, many observers called it as the new advent of Feudalism, however, the Government was committed to go forward with the scheme and many companies shown their interest to establish their units under the scheme till 2008.

The impact of Recession

In view of the global recession which started by the middle of the year 2008, the situation was changed all over the world which affected our country too. Prior to the recession, there were huge demands for commercial complexes and offices and thus the value for real estate property was at higher level. After the recession, there was a downward trend of valuation in property market which affected the rush for the purchase of offices in commercial complexes. Further, the Companies exclusively functioning in the real estate area found it difficult to get the finance, as there was a disinterest amongst the investors in shares in view of lesser value of the real estate properties.

The availability of land

There was a trend to obstruct the possession of land in establishing SEZ units. In the beginning, the Government started to acquire land for public interest by using its legal right and provided to such units for setting up units by private industrialists/business men. However, there was a hue and cry for acquiring the land by the Government for public interest and at the same time handing over to the private parties for making profits. And due to this issue, it was difficult for the Government to acquire the land for SEZ units by using its authority and power. Gradually it became the custom for the private parties to acquire the land directly from farmers for setting up their units, however, such practice also did not sustain for long in view of the opposition from small land holders to sell their land for the project although a large portion of the land was acquired for the zone unit.
There is an opinion that such cases should be resolved by the intervention of the State Government and one another opinion is that the Government should keep away from such disputes. And thus, there is an uncertainty still exists for setting up the SEZ.

Increasing Uncertainties

Now a situation has arisen wherein many companies are not interested to set up their units in an atmosphere of uncertainties. Therefore, the companies which are working in the real estate are started de-notifying their own schemes and also slowed down its activities. The companies working in other fields also are closely watching the chaining scenario, as we can understand the trend from their decisions to extend the implementation of setting up of the projects for a further period. According to the official statement, it is claimed that 101 projects are working at present under SEZ and about Rs. 1.70 lacs are invested by different parties till date. However, the opinion of the observers differ from the official stand, as according to them this is not an extra ordinary achievement and they site that under the normal conditions also there is an increase in investment in our country. And perhaps, without SEZ scheme also, there could have been investment of this order. According to observes, many times, SEZ schemes are compared with the Chinese industrial policy. But the fact is that the Chinese Government on its own sets up Special Economic Zones and there the ownership of the land rests with the Government. As such SEZ is now obstructed from all angles.

The ugly and unpredictable face of Maoism

The gruesome killing of 73 CRPF personnel in the thick Mukrana forest of Chhatisgarh’s Dantewada district on 6th April once again proved the lack of efficacy in collecting intelligence outputs and lack of training in jungle warfare to contain the guerilla war strategies of Maoists. The high causality of one of the elite para-military in a single attack shocked the nation and the responsibility for this tragic incident has to be shouldered both by State and Central Government. CRPF team consisting of about 80 personnel including a Deputy and Assistant Command of 68 battalion and a constable of the District Police Force were traveling in a vehicle which was surrounded and ambushed and overpowered by a strong force of about 1000 maoists. They had also triggered a landmine blast, which could blow up the CRPF vehicle and was the cause of maximum unexpected causalities. Although the injured and dead were airlifted to nearby hospitals and reinforcements were sent to track down the naxals and their whereabouts.

There were Naxalite violence and attack in Orrisa and some parts of West Bengal and ofcourse Andhra Pradesh has had the longest history of Naxalite movements. If we analyse the factors of naxal/maoist movements, we can find out the suppression and oppression of the poor and landless farmers by rich landlords and their loss of faith in the existing political system and administration to deliver them justice and come out of their miseries. In fact an organized movement with dedicated leaders made a cadre based party could influence a large chunk of people to the naxal / maoist fold and the members were asked to wage a guerilla war against the state establishments by attacking vital installations and killing the targeted people including the police/para-military personnel. As a matter of fact, the leaders of national political parties started thinking about the root cause of naxalite upheavals after a long drawn out battle to suppress the movement by state force and they realized the emerging scenario that the naxal movements have started spreading to new areas of Maharashtra, M.P., Orissa, Chhatisgarh, Jharkhand, West Bengal etc. and many underdeveloped parts and also in forest areas of these states, their writ runs against the will of the States. Many battles fought with them through the state force could not erase their presence and day by day their area of influence has started increasing. What went wrong for the emergence of such a scenario to develop in these under developed States even after six decades of independence? The simple answer is the failure to distribute equitably the fruits of development and the uncompassionate and insensitive bureaucracy as well as the local leaders to do something concrete for the poorest of poor. Further, they were exploited to the tilt by the local powerful and influential personnel as a tool for their upward mobility and even the Government was also apathetic towards their sufferings and poor social and economic conditions. The spread of media i.e. both print and electronic media coupled with the awareness created by the leaders of naxal/maoist movements made them more tough and they have started organizing the naxal activities with an avowed mission of better tomorrow free from exploitation and suppression and enjoy the pleasure of economic advancement and freedom.

Moreover, there was a great failure on the part of State and Central Governments to find out the root causes of naxalite movements and planning out effective schemes for their economical and social advancement and also monitoring the implementation of schemes already launched. Further, the recent declaration of war against Naxal / Maoist by Home Minister, P. Chidambaram was also uncalled for as it gave them an opportunity to unite various groups and making coordinated attacks on Government establishments and law enforcing authorities. As a strategic measure, the Central Government should have declared more employment generating and anti-poverty schemes in these areas and educating the people regarding their senseless killings of innocent people in the name of their aim and ideology on the one hand and collected more and more intelligence outputs from the people at the grass root level by working amongst them and persuading them the futility of taking weapons against the State thereby demoralizing their leaders to give up the armed struggle against the State establishments for achieving their goals. Unless and until a good rapport and contacts are maintained with the people of troubled areas and understand their woes and aspirations with confidence building measures about their future prospects and progress, it will be a Herculean task for the Government to make a semblance of normalcy in the near future. In order to achieve this, there should have a concrete plan for the amelioration of the poor people and construction of social organizations like schools, colleges, hospitals, better roads, sanitation, drinking water and the sources for continuous employment. And the Government should also propagate and advertise what they are going to do for them and what they have achieved within prescribed period is also must to counter any negative propaganda by the vested interested leaders. Hope, the Government will ponder over all these matters and think afresh for changing their mindsets to wait for some more time for a better tomorrow of their own dreams!

RIGHT TO EDUCATION ACT

The enactment of Right to Education is considered as a proactive legislation intended to ensure free and compulsory schooling to children of the age group of 6 – 14 that has come into force since April 1, 2010. India has also joined with the other 130 countries for providing free and compulsory education to children as a legal guarantee under the provisions of the Constitution. RTE enables any child to walk to his/her neighborhood school and assert the right to be admitted. Although, it may be boosted as an achievement by a section of the society, one has to be cautious about its implementation in toto in view of the poor track records of such model legislations in the past.

Our Constitution guarantees education as one of the fundamental rights of a citizen, a large chunk of Indians are not even aware of this noble piece of constitutional provision and our leaders are also seem to be less concerned to make effective measures to make it as a success. This is because of the fact that the poor are struggling to have the basic necessities of day to day life and in such a scenario, they also turn to their children for their contribution to support the family in whatever way possible. According to a rough estimate, 150 million children work as bonded laborers in our country and it is also a well known fact that they are half starved and malnourished in comparison with their counterparts in developed countries.

As a matter of fact that our constitution enshrines guarantee against discrimination, but it is vague regarding the right of life and livelihood, and there are restrictions of converting to religious faith of one’s choice etc. The constitutional provisions to protect the civil rights of a citizen are quite often not implemented and the authorities who are concerned to oversee its effects sometimes abuse and harass the people. There are countries which do not provide any guarantee for free and compulsory education to children. However, they are having the resources and abilities to influence the parents to send their children, so that they may not be a burden to the society later on and further the educational system itself is designed in such a way that when they grow up they will not have any difficulty to earn their bread and butter. It is a rosy picture of one side of the coin, but the other side is the discrimination and unsupportive attitude of the authorities to maintain the status quo of a particular section of the society due to social and historical reasons. But, their miserable stories are not highlighted in the media and no one is interested to report their social, cultural and economic status, since it would not be an attractive job. Although such a situation exists in developed nations, thousands of Indians are prepared to spend a considerable portion of their savings or by borrowing the money from financial institutions to settle in these countries with a dream of better tomorrow.

The model laws enacted for social justice seldom help the concerned sections of the society, as the levels of dishonesty and corruptions prevailing in our country make hurdles for its sincere implementation. Not only that unscrupulous elements extort money from hapless people including women, who can not run from pillar to post. Nowadays, we hear the cases of judges and cops whose roles to grease the palms of the culprits to make fast buck close their eyes conveniently before the rule of law and fair legal system which should have been worked for the welfare of the general public.

Our MPs are asked to vote for a particular legislative piece by their party do not have th right to open their mouths and hence they have become the tools of manipulators and lobbyists who are in need of various concessions for their trade and business whose interests are to earn money from the people without giving much to the price paid by them. Therefore, without proper infrastructure and addressing most important issues like unemployment, under wages and lack of support from the concerned authorities, RTE is not going to become a successful tool to support the have nots to stand up on their own feet thereby to achieve economic independence and status in the society.

The declaration and commitment of our Hon’ble Prime Minister that financial constraints do not hamper the implementation of the Right to Education Act. He knows the financial implications of implementing it in a time frame of six years and the gigantic sum required for the same. According to eminent educationist, Vimala Ramachandran “It’s not just about hiring 12 lakh more teachers, how are you going to get teachers to go and each in these government schools, especially in North India, West Bengal and Oriisa, where they are not functioning. The right is not just about the building of school, but the learning experiences”, she reminds.

Kapil Sibal is quite proud to announce that the RTE provides the opportunity to “do away with the myth that government can’t provide quality education”. However, in stark reality, even the lower middle class people prefer to send their wards to private schools show that there are very less takers for his bold statements. It means that the Government Schools have to come out with concrete measures and show that deprived sections are serious in their educational facilities offered by a Government School. Further, The earmarking o 25% seats in private schools for children hailing from economically weaker sections may become a impractical proposal, as who will see minutely regarding their sincerity and honesty in the matter ?

Certain provisions of RTE Act such as quota for poor sections are not going to be smooth, as the private schools have started asking whether the Government will hike the fees of the Schools or Grants will be allotted to them in lieu of their loss of 25% seats.

On the one hand the parents are already reeling under crushing inflation shall have to eke out something from their pockets directly or indirectly to support education under RTE. In order to achieve a sembalance of success of RTE Act, the first and foremost task is to improve the infrastructure and quality of education in government run schools and for this there must be popular support in favour of the new Act by augmenting their sources of income to donate a part for the welfare of the children belonging to poorest of poor section of the people of our country.

In order to revolutionise the existing system, it must be mandatory for every candidate who may contest in the next general elections to withdraw their kins from reputed and costlier private schools and put them in government run schools to show the world that they have no inhibition to send their wards to such schools which in turn would create an impression that change is taking place in government schools. Otherwise, this Act will be another tool to squeeze the pockets of already burdened geneal public to pay the tax in some or other ways to implement the Act without having any vision and mission and thus the middle men, unscrupulous elements and vested interested sections will usurp the money meant for this model and ambitious RTE Act.

Monday, April 5, 2010

SHALL THE EDUCATION BILLS TRANSLATE THE DESIRED CHANGES ?

The higher education scenario in our country is going to be changed within a short span of time. HRD Ministry has taken a series of measures to clean up the mess and would like to bring in accountability and transparency in Technical, Medical and Educational Institutions. The UPA Government has taken up this initiative based on the widespread allegations from various student bodies, parents associations and NGOs related with education that higher level education especially in private sector has become a commercial activity and the hype generated through various media channels have in real sense turned out to be an eye wash at the cost of quality education. Further, the students are forced to pay additional fees including exorbitant capitation fees to the authorities if they want admission in higher level educational institutions.

Quite often it has been observed that these educational establishments do not have the required infrastructure, experienced and qualified faculty and they have a tendency to promote their institutions by painting the excellent results with a view to encourage a prospective market at the cost of quality. How far such a scenario should be allowed to go unchecked is a million dollar question? Whether the Regulatory Authorities working under the HRD Ministries of State and Central Government are capable of controlling the widespread allegations against the higher level educational and technical institutions and have enough autonomy and power to take punitive actions or corrective measures? There are many such issues which churn the minds of right thinking educationalists and citizens of our country to create the cream layer of our future generation more worthy and knowledge oriented and become efficient and effective in their work spheres.

This is because latest knowledge of technical skills and educational background are required to carryout their duties, but definitely not the Certificates issued to them with certain percentage as their achievement in a particular area. The new era of globalization needs sharp minded technocrats having excellent educational and technical background to perform their roles with perfection by contributing their own share to make the products and services competitive and qualitative in the fast changing scenario of the modern world.

All the above factors including the large scale migration of students for higher level technical education to foreign universities and also the eagerness of the foreign universities to enter into the educational scenario of our country in view of its emerging role as a dominant economy has forced the Central Government to take some drastic changes in the existing regulatory system of higher level education. Four new bills such as Foreign Education Provider, Educational Tribunal, Accreditation and Prohibition of Education Malpractices have already been cleared by the Group of Ministers and approved by the Cabinet and the fifth bill calls for Amendment in the Architecture Act.

These bills are going to be tabled in the Budget session and expected to become law by Monsoon session. These steps of the Central Government is going to change the face of higher education in the area of accreditation of higher educational institutions and setting up of education tribunals and curbing the existing malpractices practices and empowering the students and parents to take punitive action against erring institutions.

The present monopoly of the Government run accreditation agencies are going to be curtailed and as per the proposed law, there will be multiple accreditation agencies mostly private with their actions being monitored by a National Authority for regulation of Accreditation of Higher Educational Institutions with an autonomous body on the lines of Sebi for regulating the Accreditation Agencies. The term of the Members is for five years and they may not be eligible for further employment in any higher educational institutions of Central and State Government. Accreditation Agencies will accredit Institutions in the areas of teaching, learning and research, human resource and research infrastructure, placement, governance structures and course curriculum.

However, the Education Tribunal Bill calls for a three tier structure to deal with disputes between students and institutions, teacher and institutions as well as dispute in connection with affiliation, unfair means adopted by students in examination and also by the Institutions. As such National Education Tribunal Bill may not adjudicate the matters concerning recognition and shall have the power to adjudicate any disputes between two or more statutory regulatory bodies and also the affiliation disputes of higher educational institutions including the affiliation of University controlled by the Central Government.

As regards the status to be given to foreign universities, HRD Ministry has left it to Government to decide about their role and regulation to be made in their routine activities. However, it has become certain that “Deemed University” will soon cease to exist and any foreign education provider may have to approach the proposed national commission for setting up their campus in India for higher education and research.

Malpractices Bill enlists about 25 major malpractices being practiced an followed by the Institutions. The proposed Bill has provisions impose hefty fines upto Rs. 50 lacs and imprisonment for a period of three years for collecting capitation fees and also for giving wrong information about faculty and facilities, overcharging on various heads including non-transparent admission procedure and also the failure to provide quality education. The Police is empowered to arrest the administrative officials of such institutions without producing any warrant and charge sheet.

The omissions and failures on the part of the institutions are adjudicated as criminal or civil offence depending on the nature of the crime. The collection of capitation fees from the students and failure to practice the terms and conditions mentioned in the practice shall be considered as criminal offences and it shall be tried in a Court of law, while civil offences will be tried in Educational Tribunals and it has the power to settle the dispute regarding any type of malpractices or harassment against the students.

Although the various provisions are provided in the Educational Reforms Bills are praise worthy and would become a model law for the lacunae existing in the educational scenario of our country, it has to be seen how the laws are applied at the ground level and its success rests upon the enforcing authorities and their sincere and dedication to implement as per the letter of spirit. HRD Ministry has a gigantic responsibility to set up the organization chart of each department to tackle the menace and spoils of the present educational system that has emerged as an entity with unquestionable underground practices and customs and no one to question its supremacy in implementing its will with impunity and making the students as its subservient in every step of its activities.

The Tribunals should have enough teeth to punish the guilty and providing speedier justice to the students as well as to the Institutes, in case unscrupulous cases are filed against them out of prejudice or influenced by the external forces inimical to the growth and interest of an institution.

Further, making the admission procedures transparent and appointing honest and dedicated officials in the selection procedure of faculties, infrastructure and also supervising the examination and curtailing the malpractices with an iron hand.

Nowadays, there is a belief that any influential person can approach the higher level educational and technical institutions through the network of politicians and their nexus with officials working therein to shower the favours to the wards of influential people in our society. But, the nation has to suffer a lot if such students are offered jobs in sensitive technical institutions on the basis of the certificates obtained from a reputed educational establishment without testing their actual knowledge and ability in the fields where they are certified with merit as successful in view of the higher connections of their parents and also influencing the officials with money power or political influence.

Our country has to take all precautions to see that our traditional and reputed Universities are not just taken over by the foreign universities in view of their image and reputation at international level. While encouraging the foreign universities, it is our bounden duty to upgrade our Universities and ask them to follow the paths and procedures adopted in the working of well known foreign universities which may set up their campus in our country. Further, it has to be seen that the students hailing from middle class and poor sections of the society are given adequate support and incentives by the Government to compete with the students of well-off sections and as such it is the responsibility of the Government of India to see that the youth of this country is provided with equitable opportunities so as to make it as a welfare model state.

Now the ball is lying with the court of the Government to mould a vibrant and resourceful generation by providing opportunities to all sections of the society to avail the higher level educational opportunities and creating an atmosphere of social justice through proper regulatory measures and intervention for uplifting the weaker, poorer sections of the society to taste the fruits of development taking place in our country.