Saturday, February 02, 2008

The ball is really in the CM's court. - Sandip K. Dasverma

As I am slowly getting aware of the OHSDP, issue & problems which is not surprising to me. Year before last at Washington DC, OSA convention(July 2006), there were two cabinet ministers from Orissa. Shri Prafulla Ghadei and Shri Surya Narayan Patra and a MLA Mr. Kalpataru Das.
I asked a question, while they were all present together to Prafulla babu. He was lecturing us that theirs as the cleanest Govt ever in Orissa. I asked: "How and why do you think - the same old corrupt people will behave differently, today? After all, they are the same old wine, just in a new bottle?"
His answer was both tactful and tactical: He said the main difference is: "We have a clean leader in Naveen Pattnayak". I was not convinced and skeptical, but it rested there. Because I knew even incorruptible Late Naba Krushna Choudhury could not turn the Govt around from it's corrupt ways, in spite of his personal integrity. I just hoped, that this time around, it will be different.

In America, where the system has similar faults but once you are caught - you are gone. Not so in India. So the corrupt, even those who are caught, survive. This encourages them, all. Particularly, when stealing is so lucrative and so useful, for the family. Smart people learn fast it is the way to go - because it is beneficial, profitable and there is no penalty.

I think this makes the difference between India and America and Indian and American success. That is why I wanted ex-PM Narsingh Rao to go to jail. It was a open and shut case where bribe money was collected and deposited in a Bank A/c. Yet, it did not happen. Because in India law does not rule, people do. It is not "Rule of Law".

So it goes on. But due instant communication, it can't be kept hidden any more,.
After the two ministers went back merrily and the scandals started coming one after another.

* It started with the NREGA scam - alleged to be 555 crores out of total of 755 crore program. Still not resolved.
* Then came Nayagarh female foetuside scandal.
* Then followed the Kantabanji spurious drug scandal.
* And now the World bank scandal.(OHSDP sacandal)
* Of course Richa Mishra suicide scandal preceded, these.

There have been many small scandals but these listed above are the major scandals in about an year's time.
This is actually a chance for the CM to prove his innocence and competence by nailing the real culprits - else he can't any longer claim to be clean.
The ball really is in his court.

Competing states, ORISSA, 36Garh and Jharkhand have practically out done the Pandabas in Mahabharat: - Sandip K. Dasverma

The issue of water is of primary importance. In attempt to out do each other the competing states, ORISSA, 36Garh and Jharkhand have practically out done the Pandabas in Mahabharat. They have put everything on the Chess board, forgetting the industries should be good tax paying citizens.
The industries should pay for their inputs, like water, Coal, Iron Ore, Lime stone etc and should plan to dispose / treat their out put. This is well defined practice of the 1st world.
Unfortunately, GOO has promised everything to Integrated Steel Plants, like Judhisthira did in Mahabharata. While playing the dice, they have bet everything and very little is left to bet, to get the POSCOs. Just the give away of Iron Ore alone, will result in a yearly loss to Govt of Orissa to the tune of $2 billion per year or 9000 crores, at current exchange rates and prices charged as Royalty.
The Math is simple:
A 12 million tonne plant will need 20 million tons of Iron Ore.
International market price of lump Ore is approx $100/tonne and likely to go up another 30% this year.
20 million tonnes*$100/tonne = $2000 million=8000 crores ( exchange rate Rs 45/$)

Considering that the cost of raising is $10/Tonne the ISP(Integrated steel plant) gets a subsidy of $90/Tonne of which 50% should come to state as Royalty, for instate plants.

For plants in other states it should be 60% and for export it should be 80% of International Market price.

Similarly all other items, like Coal, Water and other ores should be paid for at Market prices.
News paper report, ( http://www.orissalinks.com/orissagrowth/?cat=162 ) states that Mittal are willing to pay the market price for all inputs. So why not POSCO and TATAs? Whose "Jwain"(son in law) are they?

The three state Governments should get together and do it, asap.
The best would be to keep the above 50%, 60% and 80% as the base prices and then go for an open bidding, so due competition the price of inputs in short supply will be highly remunerative.

I personally do not know Mr. Navin Patnaik but as a CM I believe that the buck should stop at his desk. He has no option to play ignorant.
Right now the MOU terms indicate that the interest of Orissa is compromised and needs solid path correction.

Sunday, January 27, 2008

My take on World Bank Health project (OHSDP) scandal

http://infosources.blogspot.com/2008/01/corruption-plagues-world-bank-aided.html
Dear Sachi babu:
Wish you all the success in your OTV exposure to the Orissa and National audience on OHSDP, issue.
I am slowly getting aware of the problems which is not surprising to me.
Year before last at Washington DC, OSA convention(July 2006), there were two cabinet ministers from Orissa. Shree Prafulla Ghadei and Shree Surya Narayan Patra and a MLA Mr. Kalpataru Das.
I asked a question, while they were all present together to Prafulla babu. He was then claiming theirs as the cleanest Govt ever in Orissa. I asked: " How and why do you think - the same old corrupt people will behave differently, today? After all, they are the same old wine, just in a new bottle?"
His answer was both tactful and tactical: He said the main difference is: "We have a clean leader in Naveen Pattnayak". I was not convinced and skeptical, but it rested there. Because I knew even incorruptible Late Naba Krushna Choudhury could not turn the Govt around from it's corrupt ways, in spite of his personal integrity. I just hoped that this time around, it will be different.

Because in America, where the system has similar faults but once you are caught - you are gone. Not so in India. So the corrupt, even those who are caught survive and this encourages all of them. Particularly when stealing is so lucrative and so useful for the family. Smart people know it is the way to go - and there is no penalty.

I think this makes the difference between India and America. That is why I wanted ex-PM Narsingh Rao to go to jail. For a open and shut case where bribe money was collected and deposited in a Bank A/c. In other words it is not rule of law.

So it goes on. But can't be kept hidden any more, due instant communication.
The ministers went back merrily and then the scandals started coming one after another.

* It started with the NREGA scam - alleged to be 555 crores out of total of 755 crore program. Still not resolved.
* Then came Nayagarh female foetuside scandal.
* Then followed the Kantabanji spurious drug scandal.
* And now the World bank scandal.(OHSDP sacandal)
* Of course Richa Mishra suicide scandal preceded, these.

In between there have been many small but these are the major scandals in about an year's time.
This is actually a chance for the CM to prove his innocence and competence by nailing the real culprits - else he can't any longer claim to be clean.
The ball is in his court.
Best wishes,
Sandip