Jairam Ramesh’s point on Orissa broadening its horizon
Marine products, Prawn cultivation June 21st. 2007, 2:25amUnion minister Jairam Ramesh during his visit stressed that Orissa broaden its horizon beyond minerals and metals. Some of his points were sensible and some others politically motivated. In another posting we give a rejoinder to his politically motivated comment on IIT in Orissa. Here we present some of his good ideas excerpted from a Statesman article.
The export of marine products should grow from its present level of Rs 370 crore to Rs 1,000 crore in five years, he said and added that an action plan to this end had been submitted to the state government. The MPEDA has given an action plan and it proposes to focus on shrimp and prawn cultivation over 20,000 hectares along Balasore and Bhadrak districts. Earlier, Mr Ramesh inaugurated the Quality Control Laboratory’ of the Marine Products Export Development Authority (MPEDA) here today. This laboratory is the fourth in its kind in the country.
Organic ginger and turmeric, coffee and other items can be grown in tribal areas of Orissa and “we have a proposal pending since long with the state government for an organic export zone to be set up at Kandhamal district,” he said. Shellac cultivation was another area where Mayurbhanj district of Orissa has been identified as one of the four districts in the country for promotion of shellac cultivation he said.
He also criticizes Orissa’s focus on mines and metal processing industries. Orissa has the mines. What should it do? Hide it? It can’t. The Hoda committee recommends that if states delay in making a recommendation then the central government can make a unilateral recommendation. Now if that happens the minerals may go out of state and the state, which now only gets paltry royalty due to central govt. craziness of having very low royalty rates, will lose out on development associated with value addition(like making steel). Value addition leads to infrastructure developments such as roads, railways, ports, townships, etc. So unless Orissa pays attention and follows through on its policy of only recommending mines to companies that will do value addition, and helping the companies to do the value addition, it will lose out a lot. So Orissa’s focus on the mines, steel and aluminum is not misplaced. However the point about looking at other sectors is a good one.
June 21st, 2007 at 4:22 am
Following is my mail to Mr. Ramesh.
Mr. Ramesh:
You are mostly right that Orissa is focusing too much on mines and
corresponding value-addition industries and should focus on other aspects.
Thank you for some of your specific suggestions on that.
However, perhaps it is a curse, Orissa has the minerals. What should it do?
Hide it? It can’t. The Hoda committee that your government appointed
with planning commission member Mr. Hoda as the chair recommends that if states delay
in making a lease recommendation on iron ores then the central government can
make a unilateral recommendation. Now if that happens the minerals
may go out of state and the state, which now only gets paltry royalty
due to central govt. craziness of having very low royalty rates, will lose
out further on development associated with value addition(like making steel).
Value addition leads to infrastructure developments such as roads,
railways, ports, townships, etc. So unless Orissa pays attention and
follows through on its policy of only recommending mines to companies
that will do value addition, and helping the companies to do the value addition,
it will lose out a lot. So Orissa’s focus on the mines, steel and
aluminum is not misplaced.
Similarly, with the upsurge in demand for power all across the country,
many companies would like to get Orissa’s coal. Here also Orissa
has to waste time repeatedly telling the central govt to revise the coal
royalty rates when it is scheduled to be revised and your government
for some reason has been very tardy in that. Following up on that
the Orissa govt. has to waste time convincing the central govt the
environmental impact of having thermal power stations in Orissa
and how if all the power is exported Orissa does not get any revenue
out of that.
In other words, a lot of the time Orissa govt. has to spend on the mines and
steel and other plants is because of the unhelpful attitude of the central
government.
Nevertheless, your point is a good one. Orissa has to find
time to focus on other employment generation
industries. It knows that and it is trying. See for example the MOU with ICICI.
But it needs to do much much more and your help is most appreciated.
best regards
Chitta
June 26th, 2007 at 3:07 am
News reports suggested that Mr.Naveen Patnaik did not want to meet Mr. Jairam Ramesh since, he understands that all the power is in the hands of the senior power in Commerce ministry i.e. Mr. Kamal Nath. Jairam Ramesh is just a minister of state in the Commerce ministry.
Today’s news reports suggest that Mr. Kamal Nath in the commerce ministry is considering Orissa’s proposal for a National Institute of Design favourably.
http://www.kalingatimes.com/orissa_news/news/20070626_Orissa_short-listed_for_NID.htm