EDITORIAL
Rail on road
It has been a unique sight
--- railway coaches being driven by a truck to the Valley
--- but it brings home the challenge of development in
the State. There is no other way that this technological
bonanza could have been passed on to the other side of
the Pir Panjal. It became imperative to think of
alternatives in the absence of train track between the
two Capital cities of Jammu and Srinagar. The people on
the top put their heads together to work out a strategy.
First they thought of carrying coaches in a dismantled
condition. The idea was to reassemble them at their
destination in the Valley. It was given up as no such
facility had yet been established locally. Secondly, it
was proposed to airlift the baggage. This scheme also had
to be shelved because no plane in the country was......more
Jammu's treasure
Although no formal study
appears to have been carried out so far it is only too
well known in knowledgeable circles that the State is
getting attention of big companies as a natural producer
of rare herbal plants. Some enterprising individuals who
have got the hint have taken to agriculture only for
cultivating medicinal flora. There is an almost regular
flow of honey and garlic in particular from the hills of
this region to the national capital and other places.
Another item that has become immensely popular is
anardana (it is a Persian expression for pomegranate (anar)
and seeds (dana). It is mostly known as a spice
employed as an acidic agent for chutney and curry making.
Its medicinal properties, however, have got wide
recognition. It stimulates salivary glands promoting
dige.........more
|
|
Confusion in Delhi over Kashmir
Men,
Matters & Memories
By M L
Kotru
Will someone please, in
the name of all the Gods, tell me if there is a voice
emanating from Jammu and Kashmir that represents Indian
aspirations in the on-going Indo-Pakistan parleys over
the future of the State. We have Manmohan Singh,the
Indian Prime Minister tell us one thing, his Security
Adviser telling us another and the Defence Minister who
is no..more
RBI's busy season credit
policy
By
K R Sudhaman
It goes to the credit of
Reserve Bank Governor Yaga Venugopal Reddy who has done a
clever balancing act to ensure that interest rates remain
stable to maintain the high growth momentum and at the
same time sent strong signals that it would take measures
to contain inflation to pre-empt any overheating of the
.......more
Poll-eve political ferment in Bangladesh
By P
Bhattacharya
Descent of poll season in
Bangladesh means India has to brace up for shocks. Last
time around, in 2001 the eastern neighbour had evicted at
least 78,000 of its own citizens, fleeing mortal danger
from Jaamat-e-Islami (JeI) Bangladesh Nationalist Party
(BNP) activists seeking to ensure their opponent, Awami
League loses its electoral bases. This number denotes
only .......more
|
EDITORIAL
Rail on road
It has been a unique sight
--- railway coaches being driven by a truck to the Valley
--- but it brings home the challenge of development in
the State. There is no other way that this technological
bonanza could have been passed on to the other side of
the Pir Panjal. It became imperative to think of
alternatives in the absence of train track between the
two Capital cities of Jammu and Srinagar. The people on
the top put their heads together to work out a strategy.
First they thought of carrying coaches in a dismantled
condition. The idea was to reassemble them at their
destination in the Valley. It was given up as no such
facility had yet been established locally. Secondly, it
was proposed to airlift the baggage. This scheme also had
to be shelved because no plane in the country was big
enough to fly them. Finally they made up their mind to
transport coaches --- each of them 23 metres long ---
through road as trailer to a wagon fitted with powerful
engine. They were fitted with special rubber wheels to be
pulled all the way through the B.C. Road at a slow speed.
Two railway "compartments" have been taken in
this fashion in the first instance. At least 12 more such
trips are in the pipeline. In all 22 more coaches and two
diesel engines are to be "driven" to meet the
deadline of running regular train services within the
Kashmir region in February next year. According to the
original plans, an eight-bogey train must chug off in the
Valley early next year. It will be a historic event and
as all of us are aware making history has never been
simple. Rubber tyres of coaches will again be replaced by
iron wheels at Badgam (it has a railway yard) to enable
them to get back into their normal shape. Who will
remember then that these makeshift tyres had to be
deflated at one stage during their journey to Srinagar?
It was when the vehicles were to cross the Jawahar
Tunnel. It was found then that coaches were six inches
higher than the Tunnel. Air was again pumped into tyres
after the immediate objective was achieved. A cost of Rs
15 lakhs is being incurred on the transfer of each coach.
Often it is said that
civilisation travels on roads. It seems that a country's
intrinsic strength and potential pass through railway
tracks. One can see the boost pilgrimage tourism has
received after this city became a railhead. The traffic
of devotees to the holy Vaishno Devi shrine has shot up
by lakhs. Of course, one reason for such heavy rush is
also remarkable improvement in facilities on the Trikuta
hills. More tourists have heard of Patnitop as a tourist
resort in the recent years than ever before. Passenger
inflow and outflow has necessitated the increase in
number of trains to different corners of the country. The
extension of the railway link to Udhampur has led to the
discovery of an entire virgin territory. It is a
breathtaking trip to remember over high bridges and
through numerous tunnels between Jammu and Udhampur.
Nothing has happened to suggest that the emergence of
Udhampur as railhead has nibbled into the arrivals in
Jammu. Any apprehension, therefore, that this city or
Udhampur for that matter may suffer once Katra (the base
camp of Vaishno Devi cave) too becomes a railway station
appears to be misplaced at this juncture. On the other
hand there is every possibility that the vast railway
network facilitates the surfacing of a larger tourist
circuit. Actually one can only excitedly wait for
miracles to be revealed once the Katra-Qazigund stretch
is completed. It will expose one and all to the splendour
of the Pir Panjal ranges. This hilly part which is the
most testing of the Jammu-Baramulla national rail project
will include the country's longest 11.429-kilometre
tunnel. Undoubtedly this channel will generate thrill
five times' more than that the construction of about
2-kilometre long Jawahar Tunnel had done some years ago.
With the targeted finale
of the Jammu-Baramulla scheme in 2008 it should be
possible for the concerned authorities to settle on new
frontiers. Hopes are rising in Kargil and Leh districts
at the same time. It will take another Herculean bid to
extend the benefit to these areas beyond the seemingly
impregnable Zozila Pass, Drass and the Himalayas. The
progress so far gives one and all cause to think that it
is a matter of time before the entire State has a
reliable and efficient railway system. Human imagination
and endeavour can move mountains. Who will deny this? It
is literally proved in this instance. It is only the bold
and ingenious who can think of putting railway coaches on
road before making them run on the right track.
Jammu's treasure
Although no formal study
appears to have been carried out so far it is only too
well known in knowledgeable circles that the State is
getting attention of big companies as a natural producer
of rare herbal plants. Some enterprising individuals who
have got the hint have taken to agriculture only for
cultivating medicinal flora. There is an almost regular
flow of honey and garlic in particular from the hills of
this region to the national capital and other places.
Another item that has become immensely popular is
anardana (it is a Persian expression for pomegranate (anar)
and seeds (dana). It is mostly known as a spice
employed as an acidic agent for chutney and curry making.
Its medicinal properties, however, have got wide
recognition. It stimulates salivary glands promoting
digestion and appetite and is prescribed for patients
suffering from diarrhoea. In many other states like
Maharashtra, Gujarat, Uttaranchal, Tamil Nadu, Andhra
Pradesh and Karnataka it is being subjected to commercial
exploitation. Our cultivators have been rather slow in
realising its remunerative value. Now that they are aware
it of they are a bit cautious. But it seems that they are
not yet entirely careful as they ought to have been. How
else can one explain the bid to smuggle 90 quintals of
anardana from this region to Amritsar. Luckily, the truck
carrying the forest produce was intercepted and seized at
Lakhanpur. Available details suggest that it was loaded
at Ramban without acquiring necessary permission for
transportation. The total cost of the captured quantity
has been calculated to be Rs 6 lakhs. It does not make
sound business sense and suggests a distinct lack of
knowledge about the price it commands in outside markets.
Let's zealously guard our treasures
 |
Confusion in
Delhi over Kashmir
Men, Matters &
Memories
By M L Kotru
Will someone please,
in the name of all the Gods, tell
me if there is a voice emanating
from Jammu and Kashmir that
represents Indian aspirations in
the on-going Indo-Pakistan
parleys over the future of the
State. We have Manmohan Singh,the
Indian Prime Minister tell us one
thing, his Security Adviser
telling us another and the
Defence Minister who is now the
Foreign Minister giving us a
different take. That is only to
be expected from New Delhi which
has consistently refused to tell
us anything, apart from mouthing
platitudinous homilies which
leave you no wiser than you
initially were.
A direct consequence
of the confusion in Delhi is the
marginalisation of all the
mainstream political parties in
the State which have in the past
been steadfast in their loyalty
to the Union forced now to talk
in terms that only add to the
confusion. The National
Conference which is the oldest of
the political parties in the
State and its leaders are
expressing doubts over New
Delhi's sincerity.
And to go by their
version, the party leaders have a
point which makes good sense.
When its Government was in power,
the State Legislature passed a
unanimous resolution or was it by
an overwhelming majority. I am
not sure ? reiterating the
party's demand for autonomy
within the Indian Union, as Dr
Farooq Abdullah, the NC patron
and the party chief Omar Abdullah
maintain the Government in Delhi
did very little except promising
discussions or setting up a
committee to consider the
resolution passed by the
Assembly. The party leadership
has now gone back to urge a
return to the pre-1953 era when
the Government led by Sheikh
Mohammad Abdullah (before he was
toppled and arrested in August
1953) did enjoy far more autonomy
vis-a-vis New Delhi. Sheikh
Abdullah's was, if one may
recall, the decisive voice in the
State's accession to the Indian
Union at a time when the late
Maharaja Hari Singh was at best
dithering. The rest is history.
Between then and now
a number of Indian constitutional
provisions have been extended to
the State, a few of these in the
best interests of the State. A
succession of Governments, that
followed the dismissed Sheikh's,
went along with a New Delhi even
as one or two of these had raised
the question of internal
autonomy. Things had nearly come
to a head during the long
negotiations between G
Parthasarthy, one of Indira
Gandhi's most trusted colleagues,
and Mirza Mohammad Afzal Beg,
speaking up for Sheikh Abdullah
and his party.
The Indira-Sheikh
accord which was born out of the
Parthasarthy- Beg encounters and
which brought the Sher-e-Kashmir
back to power had also noted the
Kashmiri leadership's
reservations in certain key areas
and which they had decided to
address later in a less turbulent
atmosphere. The Sheikh died, the
on-again off -again Indo-Pak
dialogues meandered along, with
even Rajiv Gandhi giving it a try
during his talks with the then
Pakistan Prime Minister, Benazir
Bhutto.
The Indo-Pak
dialogue gathered pace, most
surprisingly, when the Indian
Government formed by the National
Democratic Alliance was headed by
the Bharatiya Janata Party's Atal
Bihari Vajpayee. And with the
emergence of a new military
dispensation in Pakistan, under
Gen. Pervez Musharraf, the
dialogue for once looked like
having gathered momentum. But
even at that stage, one regrets
to note, the mainstream,
pro-India parties, were kept at a
distance although it could be
said that Omar Abdullah was a
junior Minister in the Vajpayee
Government. Militancy resulting
in the migration from the Valley
of some 3.5 lakh Kashmiri Pandits
and the wanton killings of
civilians during the past 15
years in the crossfire between
the Pakistan-sponsored militants
and the Indian Security Forces,
is part of the State's recent
grim history. And it was indeed
the scale of militancy which gave
birth to the valley-centric
politics of Kashmir.
Pro-militant, pro-Pakistan bodies
pronounced their arrival on the
scene smultaneously and they have
stayed around ever since though
without having much political
clout.
Coupled with
Pakistan's not-so-covert support
to the terrorists was its open
wooing of the pro-Pakistan
separatists like the Hurriyat:
Musharraf ensured that even New
Delhi accepted their presence,
insisting that the Hurriyat was
the sole
representative of
Kashmiri Muslims. Over the past
five years his persistence
appears to have paid.
The mainstream
parties feel hard pressed even
when they have won in some of the
cleanest
elections to the Assembly in the
State. In desperation people like
Mufti Mohammad Sayeed, an
old-time Congress man and a
Minister in Rajiv's and VP
Singh's Governments, sought to
create a political space of their
own, distinct from that of the
Hurriyat, yet covering some
Hurriyat ground. He formed his
People's Democratic Party,
letting his daughter, Mehbooba
steer its course in the murky
valley waters. Mehbooba
identified herself with anyone
who claimed to have suffered at
the hands of the Security Forces,
visiting distant villages where
any action taken by the Security
Forces had allegedly or in
reality caused death of innocent
people.
The idea clearly was
to occupy the space which
Hurriyat and its ilk had made its
own.
Not to be denied its
share, Omar Abdullah and his
National Conference also started
to espouse the cause of
suffering
Kashmiris. What seemed to have
forced both Mufti and the
Abdullahs to effectively assert
their political clout was the
Centre's failure to take the
mainstream parties in various
regions of the State into
confidence about, for instance,
the kind of out - of
-box solution Prime
Minister Manmohan Singh had in
mind whenever the Indo-Pak
dialogues took place.
Musharraf on the
other hand was handing out
solutions on a daily basis and in
public too. The track-two
dialogues, sponsored for the most
part, only made the mainstream
parties feel further excluded.
Hence the need for them to
publicly air their reservations
about New Delhi's attitude. By
enforcing its agreement with
Mufti Sayeed to share the
six-year term of Chief Minister
with it, the Congress left the
PDP a bit bewildered although the
party has to this day not openly
questioned the Congress Party's
insistence on installing Ghulam
Nabi Azad as Chief Minister.
The upshot is that
the Mufti has moved away a lot
from his original position. He
still talks of the State's union
with India but has since publicly
announced his support to the idea
of self-ruling regions of the
State, each with a
sub-legislature of its own, it
own civil and police services,
appointment of an elected
Governor of the federation of the
self-ruling regions- a kind of a
federation or united
states of Jammu and
Kashmir. He advocates
a similar scenario for
Pak-controlled Kashmir which
would have fraternal relations
with the self-ruling Kashmiri
regions. New Delhi would have no
role in the appointment or
dismissal of a Governor or of the
Government. Of course, his
federation of Kashmir would
remain a part of India. How
exactly, remains to be explained.
The Mufti's grand
design probably approximates to
Musharraf's self-ruled regions of
the State. The Mufti wants to
steal the thunder for his
political survival, if nothing
else, and needs to be different,
even marginally. The National
Conference which had so far
confined itself to implementation
of autonomy will perforce have to
up the political ante and of it
doing just that there are
indications aplenty.
All this may well
have been avoided if Manmohan
Singh had been more forthright in
his dealings with the mainstream
political parties in the State,
the BJP, Panthers, the Kashmiri
Pandits and others included.
Manmohan Singh may be a
well-meaning man but does he have
the vision even at this late
stage to carry the mainstream
parties with him? His approach
to-date does not look very
inspiring. Has he developed a
national consensus on his
out-of-the-box solution ?
|
|
 |
RBI's
busy season credit policy
By K
R Sudhaman
It
goes to the credit of
Reserve Bank Governor
Yaga Venugopal Reddy who
has done a clever
balancing act to ensure
that interest rates
remain stable to maintain
the high growth momentum
and at the same time sent
strong signals that it
would take measures to
contain inflation to
pre-empt any overheating
of the economy.
The
only key rate instruments
the Central Bank hiked
was the repo rate, the
rate at which it lends
short-term funds to banks
by 0.25 per cent to 7.25
per cent to ensure
surplus liquidity with
certain banks are sucked
out. It has left all
other key rates like
bench-mark bank rates and
reverse repo rates
unchanged at six per cent
and Cash Reserve Ratio at
five per cent.
This
means that it wants to
ensure that interest
rates remained stable so
that the high growth is
not dampened by easy
availability of credit.
Indicating the buoyancy
in the economy, Reserve
Bank hiked the growth
projections for the
current fiscal to eight
per cent from the earlier
forecast of 7.5-8 per
cent. It has, however,
retained the earlier
inflation projections of
5-5.5 per cent. By
raising the repo rate,
Reserve Bank has
tightened the policy
stance as banks' right to
access liquidity support
was no longer automatic.
Thus fund starved banks
will have to pay more for
access to money.
As
a result, Credit for
productive purposes would
not get affected but
loans for consumption
purposes might go up.
However, bankers have
indicated that home and
auto loan rates would not
go up though there are
possibilities of loans
for personal purposes and
commercial real estate
becoming costly. By
making funds costly for
banks depending on RBI,
is an attempt to make
those banks to balance
their portfolios to
tackle demand pressures.
As
Reddy himself said :
The RBI will
ensure that appropriate
liquidity is maintained
in the system so that all
legitimate requirements
of credit are met,
particularly for
productive purposes,
consistent with the
objective of price and
financial
stability.
This is the fourth repo
rate hike the Central
Bank has made in the last
one year, signalling
caution in credit growth.
As Reddy himself puts it
in the statement that
banks need to know that
liquidity is not
available on tap from the
Central Bank and that
they need to balance
savings and investments.
Tightening
of monetary policy on
this front, however, has
to be measured as housing
sector is prime mover of
the economy providing
necessary employment and
multiplier effect. What
is more significant in
the monetary policy is
the slew of measures
taken to move towards
fuller float of rupee.
After Prime Minister
Manmohan Singh earlier
this year asked Finance
Ministry and Reserve Bank
to work towards fuller
capital account
convertibility, the
policy had taken the
first major steps in this
regard.
With
focus on rate hikes and
inflation, the efforts on
capital account
convertibility has
somehow have not been
paid that much attention.
The policy has doubled
the limit of individual
dollar remittances from
the present level of
25,000 dollars to 50,000
dollars annually. It has
raised the external
commercial borrowings and
allowed foreign exchange
earners to retain all
their earnings in the
foreign currency
accounts.
Banks
have also been permitted
to borrow external funds
from overseas branches.
The RBI also proposed to
raise the ceiling of FII
investment in Government
securities to 3.2 billion
dollars in phase by March
2007 from the present
level of two billion
dollars. The overseas
investment ceiling for
mutual funds was raised
to three billion dollars
from the present level of
two billion dollars.
Pre-payment of External
commercial borrowings up
to 300 billion dollars
has been allowed without
prior RBI approval.
The
slew of measures toward
capital account
convertibility would
enable corporates borrow
more from overseas
markets. The monetary
policy also provides for
India Inc to take bigger
loans from Indian banks
to fund their overseas
acquisitions. Indian
firms have also been
allowed to borrow an
additional amount of 250
million dollars by way of
ECB through the automatic
route. This is over and
above the existing limit
of 500 million dollars
under the automatic route
in a financial year.
Corporates
have also been allowed to
pre-pay their foreign
borrowings up to 300
million dollars from the
present 200 million
dollars. The monetary
policy also provides
two-year breather to
smaller banks to
implement the Basel-II
prudential norms. They
have got more time to
gear up to meet stringent
norms on capital
standards set up by the
Bank of International
Settlements (BIS). It has
apparently followed some
of the Central Banks in
the Asian region which
have pushed back the
deadline.
Originally
the deadline was April
one, 2007. Now foreign
banks and those Indian
banks which have an
overseas presence would
be required to adopt
Basel-II norms by April
one, 2008, while the
other banks will have to
conform to the norms by
April one, 2009. Basel-II
norms make it imperative
for banks to provide
additional capital on
account of operational,
market and credit risks.
The amount varies from
bank to bank. Giving the
reasons for extending the
deadline, Reddy said
with some
banks implementing it, we
will be able to capture
the global experience
while other banks will
get to learn from the
experience of these banks
with overseas
presence.
On
movement towards fuller
capital account
convertibility, it has
rightly adopted
gradualism to ensure
there is no flight of
capital.
PTI
Feature
|
|
|
|
 Poll-eve
political ferment in Bangladesh
By P Bhattacharya
Descent of poll
season in Bangladesh means India
has to brace up for shocks. Last
time around, in 2001 the eastern
neighbour had evicted at least
78,000 of its own citizens,
fleeing mortal danger from
Jaamat-e-Islami (JeI) Bangladesh
Nationalist Party (BNP) activists
seeking to ensure their opponent,
Awami League loses its electoral
bases. This number denotes only
those who were in relief camps
run by the likes of the BJP and
the VHP, informed people say.
Many others had crossed and had
melded in the Indian population.
The BNP-JeI had also
raised the demon of 'Indian
hegemony,' to fan the flames of
chauvinism so the results at the
hustings could be in their
favour. India had reacted with a
conspiracy of silence. The
National Democratic Alliance
(NDA) Government wanted not to
endanger its fledgling
relationship with the Bangladesh
Army-backed BNP and conversely,
may have also thought reactions
to the cross border atrocities
would solidify anti-Muslim
sentiments in the east. And the
West Bengal Government refused to
acknowledge the problem because
it did not want people's hackles
to be raised against a proximate
neighbour.
No one raised the
issue of growing Islamisation of
Bangladesh. Result were reports
about the rise in the next five
years of such organisations like
Harkat-ul Jehad-al-Islami (HUJI)
and heightened influence of al
Qaeda. The BNP chief, Begum
Khaleda Zia's obvious fascination
for collaborationist forces,
including in the JeI, has
provided Pakistan's infamous
Inter Services Intelligence (ISI)
and their understudy, Dhaka's own
Directorate General of Foreign
Intelligence (DGFI), a ready
talent pool of operatives
ideologically attuned with
Islamism.
This time the
situation may not be changed in
any major way. Five years of BNP
- JeI rule has created a wave of
anti-incumbency. To counter that
these parties may seek to raise
the spectre of 2001, only more
strongly this time as they
otherwise have their backs to the
wall. A split on 27 October in
the ranks of the BNP has created
a fresh centre of Zia-ur Rehman's
ideology of 'Islamic roots of
Bangladeshi nationalism' in the
newly formed, Liberal Democratic
Party (LDP). An inveterate
resentment against Begum Zia's
son, Mr Tareq Zia is providing to
be a polarising factor in the
country's politics.
Long time Bangladesh
watchers say the obvious. The LDP
will be joining hands with the
14-party alliance of the Awami
League (AL) under the leadership
of former Prime Minister, Sheikh
Hasina Wajed. But all political
realignments in the country's
politics may not be complete yet.
For the Islami Oikya Jote (a
seven party group of Islamists)
have just left the BNP-JeI
alliance. They had positioned
themselves as more hard-line than
the JeI. Impact of their move is
yet to be gauged, as the country
lurched into unmitigated violence
as Begum Zia sought to install a
supportive member of the
judiciary as the 'Chief Adviser'
at the head of the caretaker
Government. It was to take over
after he ended her term in
office.
Supporters of the
AL-led alliance took to the
streets seeking to reverse the
decision. Finally, the President
of the country had to step in
appointing himself as the chief
adviser. He was served with a
four-day notice by the AL to
prove his 'neutrality."
Clearly, the road to the polls
will not be smooth.
India will have to
remain alert this time around so
that there is no repetition of
2001. A massive attempt to drive
people out of Bangladesh on
account of their political
allegiance cannot be accepted as
a standard operating procedure of
democratic political activity. On
the other hand, New Delhi will
have to be attentive to the fact
that it does not appear to be
taking partisan sides in the
polls. For that would only fuel
more charges India's influence in
Bangladesh's politics.
In any case, those
who believe that Sheikh Hasina
Wajed will be a major improvement
upon the record of the BNP-JeI
alliance in terms of reducing
Islamic influence in the
country's politics need just to
check her record in office last
time around. She seldom took on
the JeI attempts at infusing
Islamist principles in rural
Bangladesh. Some say that she was
told by Islamist elements in
party that she would lose
electoral support if she was seen
to be siding with the
secularists.
That might have been
the reason she failed to address
any of the issues India wanted to
engage her. Questions of trade,
transit and trans-shipment
remained unresolved. Bangladesh's
inability to divorce chauvinism
from commercially sensible
decisions about supplying its
natural gas to India has resulted
in the former country's economy
taking major hits. In the process
Bangladesh economy got not a
spin. This had an adverse impact
on the entire polity vitiating
the entire political atmosphere.
If the Bangladesh is looking for
pressure points on India, Dhaka's
manoeuvring apparently back
fired. In addition it has
acquired a dubious distinction of
a safe haven for Pakistan trained
terrorist across the globe.
Yet, India's
strategic interests are hinged on
a successful democratic exercise
of popular elections in
Bangladesh. For a failed
democratic experiment in the
country could plunge entire
region into turmoil. CNF
|
|
|
|