Info pages

Thursday, May 17, 2007

Tathagata Sathpathy - Editor Dharitri on What Orissa MPs can do?

Sections

What Orissa MPs can do? They can do better by asking for royalty of Iron
Ore to be linked 80% of world market price and no SEZ.



It is really commendable that MPs from Orissa have stood up at long last in the parliament on the IIT issue and made voice of Orissa, heard. As we know the protest has not yielded any result, at least immediately. Govt. of India, has gotten accustomed to an acquiescing Orissa, with little or no protest on such issues, even as much as a squeak. My suggestion to our MPs would be: don't waste your energy in begging. I was checking yesterday and found that 46.7 million tons of Iron Ore have been raised last year from the mines of Orissa. If we could charge the world market price to the buyers, Government of Orissa(GOO), would have earned: ($84.4-$10)*46.5 million =$3.5 billion $$. Where $10 (Rs. 450) is the raising cost. If we get this money then GOO can have: Fifteen, Rs. 1000 crore IITs. And if Orissa MPs can collaborate with MPs of Jharkhand and 36 garh, we will be in a position like OPEC countries to pay our way to a developed condition. Now some one may ask me, how do we get this done? This is money that the mine licensee are minting(and integrated steel plant owners) – how does Government of Orissa / 36 Garh / Jharkhand can earn it? My answer is through – Orissa Mining Corporation. Even if the cost to OMC is $15 due it's inefficient & higher cost ways (no corrupt practices will of course be allowed), the money thus earned can be given back or donated to GOO prescribed causes and spent on the mined/mining areas for their development. There will be enough, Rs.15000 crore of earning for every cause in Orissa, every year, at the present rate. If GOO gets $60 as royalty - there still will be $25 for mining and transportation etc. It is OK to have the pit head steel plant but that they can be given the license so the state gets it's $60 or 80% of world market price which ever is greater. Posco/ Mittal or TATAs will still have 5% advantage over others to locate the steel plant in Orissa or 36 Garh or Jharkhand, considering there is a 10 to 15% disadvantage of backward area due unavailability of ready made infrastructure. Let our MPs do us a favor, demand to GOI to raise and link the Royalty to 80% of the world Ore price permanently. And let GOO ensure that there is no stealing of Ore from the mines as is prevalent. And Orissa will then have money for everything and to spare. We need to spend the money to make our 7,011 high schools were functioning in the State (now 7800) Oriya medium High schools, 44,416 Primary Schools, 14.233 Upper Primary Schools, comparable to the English medium schools or better like it was in 50s and 60s, when a Purusottampur High School, produced a topper in High School Certificate examination. ( An educated citizenry can take care of themselves.

Best wishes,
Sandip Dasverma

----------------------------------------------------------------------------------------------------------

Dear Mr Dasverma

I am so happy that atleast one person is logical. While most of our energy is wasted dancing to the tune of email senders and asking for an IIT, our basic education level has dropped beyond recognition. In most rural schools of Orissa, we barely have oneteacher for nearly 4 or 5 classes. Each containing not less then 40 students. Most primary schools have no class rooms. We have to resort to desperate exerciseslike Mid Day meal schemes to entice the children to keep coming to school. Our drop out level is not only the highest in India, it is higher than most Africannations. Mid Day meals, as you know well, keeps that single teacher busy throughout the entire working dayprocuring food stuff, cooking and serving the kids. If she/he is found failing in that, then out they go from the job. Are you also aware that most Sikshay Karmisdid not join their assigned posts? First, they did not ind the pay packets attractive. Second, they wantedto be posted in their own village, not even the same Block suffised. And most interestingly, they went on a strike last year without commencing work for even a day. When you say--"An educated citizenry can take care of themselves", I assume you did not imply a techie from some IIT but general people who are educated enough to understand which way the nation goes.And I fully agree with you. I, as an editor and also as an MP, have been demanding publicly that mining in Orissa (iron ore, coal, chrome and all)should be handed over to professional mining companies who would bring in latest world class technologies and ensure no theft or pilferage takes place. The ores thus lifted should be graded and stacked in government alloted stockyards. OMC will operate escrow accounts with these private companies. Genuine end users (first preference for industries within Orissa,not by compromising price but when stocks are limited only) will bid and buy the ores at international prices by paying OMC. Since the account will be of a particular nature, the mining company can not be harrassed by the bureaucrats in getting itspayments. This payment will include cost of raising and also the profit margin.OMC would give the Central governement its dues and keep the State's cut as its profit. The highest bidder is then directed to lift its required ore from a designated yard. Quantity of ore available in each yard would be daily updated on the net by the mining company.This would ensure no mischief by OMC and also immediate delivery to the bid winner. This way Orissa avoids the huge loss of precious minerals being incurred due to loss in mining thru archaic technology.Theft will dwindle since private motivated guards will replace inept mining department officials. Daily output from each mine, amount transported, stock level, bid amounts accepted and stocks lifted etc could all be on the net and transparent to the public. Then OMC could single handedly finance all development projects in Orissa. The best example of this kind of an exercise could be seen in the steps taken by President Hugo Chavez of Venezuela. But then.....who has the time to think of Orissa. We are all soooo busy with our fanciful thoughts.


Tathagata Satpathy
Editor

2 Comments:

  • A nice answer from a Orissa MP. he sounds so helpless. He seems to know all the answers, but what can be done. And this in a country where a single man like M.K.Gandhi shook the foundations of the mighty british empire.
    Indeed, we people of Orissa are locked up in our mediocrity, is there no one to challenge this? We need to rise as a people and move pragmatically and with our inner strength. Are we getting exploited by the central governments step-motherly treatment?
    Or is raising a voice against the centre will be against the constitution? I don't think in the land of civil disobdience.

    Thanks for some wishful thinking.

    By Blogger Tarun, at 11:18 PM  

  • Attn.

    Secretary,Finance
    Development Commissioner
    Meenakhi Nath and Supriya Pattanayak, DFID


    Our sources have learnt that DFID has been compelling Govt of Orissa to choose among big bad boys (KPMG, E&Y, PwC and Delloitte) to advise Orissa on Governance.

    A paper clipping as published in Buisness Standard (13th April 09) is enclosed that speaks volume of all these agencies complicity in fraud.

    This is not a global issue. Look at Satyam what PwC had done.Interestingly E&Y was also involved with Maytas. Further one of the PwC partner Rupen ray used to this wheeling dealing has joined Deloitte.KPMG is recently idcited in UK so also ASI.

    These agencies take cover under respected agencies like NIPFP and ASCI. Take them as consortium and then marginalise them.

    Orissa will not learn Governance from this big scamsters.

    I hope good sense prevails.

    Regards

    P.Pattanayak

    Association for Accountable Administration
    Cuttack

    By Blogger Unknown, at 5:25 AM  

Post a Comment

<< Home