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J &
K: 55 years & Development
A
sad story of wasteful expenditures, unproductive schemes and wrong
priorities
B
N Kaul
INTRODUCTION
:
One
cardinal principal adopted by Prof. Malanbois in his draft second
FIVE YEAR PLAN was that priority should be given to those schemes
which increase the self propulsive force of economy. Hence he gave
priority to Power generation, Irrigation, Coal, Steel and Cement
production etc.
Unfortunately
in J&K development planning has been always adhoc and dependent
on the political bosses of the day. It is a direct result of this
faulty planning that Jammu and Kashmir has 3 lakh youths unemployed and the government is saddled with an overstaffed strength of
another 3 lakh employees.
ACHIEVEMENTS
OF LAST 55 YEARS:
Before
the deficiencies of planning in Jammu and Kashmir are discussed it
will be relevant to summerise the achievements of last 55 years.
Following
figures published by J&K Government ( Hindustan Times, 15th
August, 2001) are indicative ;
Department 1950
2000
Teachers
441
83630
Edu.
Inst.
1322
15858
Enrolment
1.08 lakhs 11.2 lakh
Milk
Products
0.16 Lakh
11.2 Lakh
Tube
Wells
23
890
Road
lengths
3091 Kms 15225 Kms
Power
Capacity
4.0 MW
1577 MW*
*
includes Central projects
MONEY
PUMPED BY CENTRAL GOVERNMENT INTO J&K STATE:
The
entire Plan expenditure of J&K State is met by Centre.
Following
table gives expenditure under 5 Year Plans and one year Plans from
1950 to 1990.
PLAN
EXPENDITURE
Ist Plan
11.52 Crs
2nd Plan
25.94 Crs
3rd Plan
61..85 Crs
Interium Plan 59.95 Crs
4th Plan
162.85 Crs
5th Plan
278.54 Crs
1978-79
101.64 Crs
79-80
119.72 Crs
6th Plan
918.40 Crs
7th Plan
1400
Crs
The above forms only a percentage of the total expenditure.
the figures
after
7th Plan (85 was starting year of 7th Plan) are not available to
the
writer. The total grant-in-aid in 1988-89 was 1003 Crores and for
2002-2003
Outlay is 2200 Crores. However the figures of 1, 20, 000 crores was given in (Hindu
dated 30th
May
2001) as the total amount paid by Central Government to Jammu and
Kashmir
government for development in last 55 years up to 2002.
WASTEFUL
EXPENDITURE
Irrigation
and Flood Control
Between 1950 and 1985 about 300 Crores were spent on
Irrigation. But the
achievements do not seem to be
commensurate with expenditure. The irrigated
area in Kashmir Valley was 2.2 Lakh Hectres and it did not increase
much up to 1985. Gigantic lift irrigation project like MARAVEL LIFT
IRRIGATION, LETHPORA LIFT IRRIGATION were constructed to irrigate
areas
substantial part of which was already irrigated by ZAMEENDARI
KULS.
Phrases like modernizing, modeling, remodeling were manufactured
to
justify expenditure on the same canal or Kul over and over again.
Scores
of low dams were constructed but did not give intended benefits
because
of bad planning. Many Bonds for reclamation of land
(particularly
around Wular-Lake) proved failures.
In Jammu Division the irrigated area in 1950 was 1.57 Lakh
Hectares
which
increased to about 1.8 Lakh Hectares. Some irrigation projects like DUDHAR
CANAL, UDHAMPUR CANAL. RAVI-TAWI PROJECT, Lift Irrigation Projects
at Jammu, Rajal Nowshehra did give benefits. But no evaluation study
was done to check if the benefits matched with expenditure. Most
of
the money spent in DODA District, upper areas of RAJOURI District on
irrigation
got wasted. All canals like KISHTIWAR Canal, SHIVA Canal, MANDAKWAS
Canal, MALWANA Kul,
NILE Kul were disastrous failuers. In Doda
and Rajouri Districts there was hardly any increase in irrigated
area
of 5000 and 4580 Hectares respectively even after 35 years of expenditure.
Industries
and Mining:
From 1950 to 1985 213 Crores spent on Industrial development
and yet
there
was no perceptible increase in production. the value of production
of
medium INDUSTRIES was 347 Lakh in 1970 and 1471 Lakh in 1985 which
does
not indicate any increase in quantity if allowance is made for inflation
(index in 70 was 38 and in ‘85 it was 120.)
Lignite Bricqueting plant was established and Lignite mining
started
at
Handwara
but was abandoned as it did not prove economically viable. A
huge
organisation “J&K Minerals” was established and under it a
Thermal project
at Kalakot was constructed for 20 MW. After construction it was found
that there was no coal and the entire money got wasted. Industrial
Estates
were constructed in all important cities in the State but there
being
no power available soon these buildings housed BSF and other Central
police forces. It was not realised that for Industrial development
Power was essential for which nothing was done from 1953 to
1966.
Despite being saddled with half a dozen Directors the Silk
production
in
the State fell from 38295 Kg to 23704 Kg between 1974 to 1985.
Match Factory at Baramulla was purchased from its owner but
it soon
became
defunct. Brick Factory, Lime Factory and Joinery Mills were established
and proved only partially successful. Ply Board Factory at Pampore
and Creamics Factory at Kathua proved failures.
Huge number of Small Scale Industries were established but
generally
they
cornored Import Quota (salable in Black Market) and Subsidies available.
The state of Industries in Jammu and Kashmir were described
by CAG
Report
(Times of India dated 9-11-2001) which quoted the instance one
Deputy
Director reporting (on physical verification) that half of the Registered
Units were untraceable.
Dr.
Mustafa Kamal told the State
Assembly recently that out of 365, 10
small Scale Units only 16219 were
untraceable and 5146 Units were Sick (Excelsior
dated 16-3-2002). The CAG Report cited above stated that J&K
Government invested Rs. 3500 Crores in State Undertakings which
fetched only 2 percent returns.
POWER
GENERATION
In
1950 Kashmir Valley had only MOHRA (4 MW) and Jammu had 2 MW Powerhouse.
Ganderbal Project (9MW) started by Sheikh Mohammed Abdullah in1948
was completed in 1957. From 1953 to 1966 not a single Power Project was
started. Thanks to efforts one brilliant Engineer (Mr. Mir
GulamRasul) Sadiq Sahib stared Upper Sindh Hydel Project (22 MW)
Lower Jehlum Hydel Project (100 MW), Chenani Project (22 MW) which
were completed by1978.
(These projects were started in 1966). From 1966 upto 1984 not a single
new project was started despite timely warning by Mr. R. S. Gill Commissioner
PDD J&K 1972-79) that J&K Government should immediately
start URI Project (480 MW). This Project was later on started by
Central Govt and completed recently. J&K Government gets only 12
percent free power out of this project.
The
tragedy with Hydel Power Projects is that in winter (when Kashmir
Valley needs most power) due to non-availability of water power generation
reduces by 66 percent (i.e. only1/3rd capacity becomes operational).
Thus in winter Kashmir Valley has tremendous
power shortage) and hence no industry can be viable in
Valley. R S Gill again had
warned the Govt that 440 KV Transmission line to carry power from Jammu
should be erected immediately.
This also was not agreed to by Syndicate (a group of officers who
formed a Think Tank for all regimes after death of Mr. G M Sadiq)
dominated J and K Govt.
The
result was that in winter Kashmir Valley even now continues
to suffer become of tremendous shortage
of power. I
will not discuss here the huge Transmission losses (Power thefts) and huge Power arrears.
In Frontline dated 24-12 1999, it was stated in an article that 500
Crores were cumulative arrears of Power Charges and Rs.600 crores
are lost in Transmission in a single year.
NON-PRODUCTION
ORIENTED SCHEMES:
It
has been feature of planning in J&K that unproductive (schemes received
greater funds in the name of welfare of people. Thus from 1950to1985
out of 3700 Crore plan outlay as much as 1900 Crores were spent on Buildings
Roads, Construction of Tourists Bungalows, Tourist
huts, Office buildings, School Buildings and Public health.
From
1978 to 1990 again substantial
part of funds were spent on Sheri Kashmir (Medical) Institute,
Convention Complex ,attached to Centaur Hotel, Dal Development,
office Buildings, hospital Buildings Nallah Mar Road, scores
of tourist huts, money was spent also on fancy schemes like international
Golf course at Gulmarg and srinagar, chair car rope way at Gulmarg.
Fruit Mandi, National High Way bye pass in addition
to making drinking
water schemes for villager Wool Grading factories etc were
established but soon become defunct become of lacking of power in winter.
In Dal Lake two roods and desetting
basis (of very doubtful utility were constructed much against
advice of British consultants.
There may be two opinion on the Urgent
necessity or otherwise of the scheme, but one fact is clear that
there schemes were not production oriented.
ELITE-CLASS
FRIENDLY SCHEMES
Educational
Policy
Bakshi
Sahib on talking over as CM in 1953 announced free education upto
Post Graduate level. Although on first appearance this looked
laudable but in actual practice it so happened that children
of elite class (because better schooling)
reached graduate
classes and received their Engineering, Medical and Scientific
education at the cost of Public exchequer, while their bothers in
Govt School in villages
became school dropouts.
An
analysis of social background of
Engineers, Doctors Scientistsproduced by J&K University will show that they belonged to
well-to-dosections of Kashmir society whose parents could well have
afforded togive such education on their own. This policy had two
results
(i).
In course of time higher eduaction (Engineering, Medical
andUniversity) ate away most of the education budget leaving very
littlefor the School education in rural areas. The village Schools
continuedto be without rooms, blackboards
producing school dropouts in plenty.
(ii).
The second consequance was
a large number
of Engineers and Doctors produced when it was not possible to
accomodate them in Government Service. Even
now there is
a backlog of 5000 Engineersand
Doctors awaiting posting.
On
the other end it produced a huge number of educated
peoplematriculates and non-matriculates who were cut off from the
professionsof their forefathers, considered it infradignitum to do
manual work andlooked for a clerk or a daily wagers Job. No wonder
that Governmentafter Governmentt had to expand estalishment and
increase army of dailywagers to cater for this vocal section of
society. At present the salarybill of Jammu and Kashmir
Government is reported to be Rs. 3000 Croresas cost of
establisment alone .
An
instance of reckless expansion pf government apparatus is given the
way Corporation after Corparation (like Small Scale industries
Developement Corparation, Tourist Development Corparation,
FinanceCorporation ......... were setup). Mr Jagmohan in his
“FrozenTurbulance” has cited how 11 such Undertakings ran a loss
of 71 Croresin a single year alone.
INDUSTRIAL
POLICY:
How
most of industries setup by government failed has been
discussedearlier. How muchgovernment money was wasted in failed
industries issomething which will be known after deeper study. The
money advanced toprivate individuals (again belonging to elite class
having clout amongpower that be) also has gone waste. The money
advanced by StateFinancial Corporation (SFC) increased from Rs. 4.01
Crores in 1960 to Rs14.87 Crores in 1985. Bank advances increased
from Rs. 1.23 Crores toRs. 260 Crores in 1984.
RISE
IN BANK DEPOSITS:
Between
the year 1961 and 1983 the bank deposits rose from 10.98 Crores to
548.90 crores which shows an annual growth of 19.5 percent
against2.4 percent rise in GDP.
CONCLUSIONS:
From
the above the Conclusions are:
a.In
entire 55 years emphasis was not on such schemes which would
increase production and self propulsive force of economy but unproductive
(many times anfractuous), welfare oriented schemes without a long
term perspective.
b.Inspite
of the fact that Central government aid per capita for J&K was
high (2291 against 192 for Bihar, 233 for Tamil Nadu and 331 for
Karnataka). The real progress in J&K was very low. An idea of
non development expenditure per capita is given in article by Mr
Jagmohan (Hindustan Times dated 25.5.1995) and is quoted below:
J&K
= 699
Bihar
= 64
Rajasthan
= 64
Utter
Pradesh = 20,
Tamil
Nadu = 73.
c.To
a large extent it is these wrong policies
which created a fertile ground for militancy in the State.
Inspite of 3 Lakh employees in its over staffed establishment it has
a backlog of three Lakh semi-educated youth.
The
author has Retired as Chief Engineer of J&K State.
By
arrangement with Kashur Gazette, New Delhi.
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