Boosting MSMEs to fortify rural belt: Raghubar Das

Interview with Chief Minister, Jharkhand

The first 15 years for a state with immense potential, given its rich mineral resources, have not been as speedy as expected, thanks to political instability and bureaucratic hurdles. RAGHUBAR DAS, Jharkhand’s 10th CM in 15 years, tells Kumar Akash & Bhaswar Kumar about the initiatives taken to improve business environment. Edited excerpts:

Jharkhand is known for its rich mineral resources. How do you plan to tap this bounty for the state’s development?

Initially, effective use of rich mineral resources for the state’s development proved a challenge; proper planning and strategy were required. So, we set up a team to focus on industrialisation of the state. Things have been made easier for entrepreneurs through a single-window portal for investments and setting up of industry, among other things.

Jharkhand has so far received Rs 320.84 crore from coal block allocations. What could be the long-term benefits for the state? How will these funds be used? How do you see the new allocation policy vis-a-vis the previous mechanism?

We have entered into an agreement with the Union railway ministry and Coal India for developing two railway lines and 10 new sidings in the command area of Central Coalfields Ltd, to facilitate movement of people and freight. For this, we have formed a joint venture (JV) with the Centre; the state government owns a minority stake of 10 per cent in the JV.

Besides, a memorandum of understanding (MoU) has been signed with National Mineral Development Corporation for proposed mega steel plants in the state. The coal companies in Jharkhand have been told to spend half their mandatory two per cent corporate-social responsibility (CSR) spending on our recommendation. These funds will be used for uplift of the deprived classes.

We are hopeful that the new allocation would, with fair practice, bring revenue and jobs.

Jharkhand’s per-capita power consumption, at 846.8 kWh in 2012-13, was lower than the national average. And, as of September this year, the state had electrified only 1.47 million of its 4.69 million rural households. In view of the Centre’s aim to provide 24x7 power to all, what does Jharkhand plan to do to take affordable electricity to the masses?

Electrifying the households is one of our key responsibilities and we are committed to fulfilling it. We have entered into a joint venture with NTPC to revamp and augment capacity at Patratu Thermal Power Station (PTPS) and set up 4,000 Mw of capacity — five phases of 800 Mw each — over 1,850 acres. The first phase of 2,400 Mw is expected to be completed by 2019-2020, while the rest will be implemented by 2024. Jharkhand will be self-sufficient in the next five years and a power-surplus state thereafter. Under the JV, in which the state will have a 26 per cent stake, NTPC will provide 85 per cent of the electricity produced to Jharkhand at a lower rate.

Besides, the Tenughat Vidyut Nigam Ltd (TVNL) plant will be revamped and other private companies reviewed. We are also committed to tapping our huge resources to develop a base for clean and renewable energy. Jharkhand has about 300 days of sunshine every year, a great solar power potential. With 680,000 acres of forest-free land, the estimated potential can generate 18,000 Mw of renewable energy.

The state has also become the first to join the centre’s Ujwal Discom Assurance Yojana (UDAY), which will help in financial revival of power distribution companies and ensure a sustainable solution to the problem.

A product of political turmoil since Jharkhand’s formation 15 years ago is a bureaucracy-heavy administration. Has that proved a hurdle for industrial development in the state? If so, how do you plan to mitigate the situation?

True, it was proving a hindrance for the state’s growth and development. A fair bit of damage had already been done by the time we took office. However, after coming to power, we made it clear that the work culture needed to change. Bureaucrats in the state used to lobby with influential politicians for transfers and postings. So, I ensured no bureaucrat visited my place without a proper reason.

Instructions were sent out that no uninvited government officer should visit the residence. Officials were asked to be ‘Karmayogi’, as the state cannot wait to climb the success ladder. It was made clear that “transfer-posting industry” would not be allowed to function; postings will depend on merit and work. Better policing, improved infrastructure, speeding up of development projects, spending plan budget, providing piped water to all households by 2017, and empowering vigilance was put on priority. It was necessary to lay a strong foundation for the growth and development of the state.

Your state has a large number of micro, small and medium enterprises (MSMEs) but not many large industries for them to feed. How do you plan to improve this?

We are banking on the concept of ‘Make in Jharkhand’. Under this, even as we welcome big corporate houses to the state, our focus is on strengthening the MSMEs to fortify the rural belt. Under the Jharkhand industrial policy, large public and private industries are directed to prefer local small-scale industries for sourcing raw materials. For greater facilitation, bi-monthly meetings among MSMEs and corporate heads are to be organised. MSMEs are being advised to focus on quality, to suit the needs of quality-conscious industries.

Your government completes a year in office on December 28. What have been your biggest achievements so far?

We have taken several measures for the state’s development. We are getting global recognition, too. World Bank has ranked Jharkhand third in its ‘Ease of Doing Business’ list, next only to Gujarat and Andhra Pradesh. In terms of fastest-growing states, we are fourth. The law-and-order situation in the state today is much better than before.

We have also completed India’s first solar energy-operated government complex in Khunti. There are e-governance and mobile-governance mechanisms in place. The state, which did not have its own Vidhan Sabha building in these 15 years, is going to get one shortly. Also on anvil is a new high court building.

To retain talent and address the ‘brain drain’ issue, we are working to create attractive jobs in various government departments. And to curb graft, we have set up a strong anti-corruption bureau, instead of vigilance bureau. Many corrupt officers have been arrested lately.

Jharkhand is the first state to have set up a Corporate Social Responsibility (CSR) Council, and introduced sports universities through CSR.

We aim to transform Jharkhand through agriculture and industry set-ups. For agriculture, Base for the Indian Farming Research Institute has been structured. The toll-free number 181 has been launched to expedite problem solving through direct communication.

Talking about the ‘Ease of Doing Business’ ranking, what steps did you take to improve your state’s performance, and what do you plan to do to improve the ranking?

See, it is a result of comprehensive efforts and coordination among different government departments. Various reforms have been undertaken. It is in view of ease of doing business that we have started the single-window system for industries. Besides, we have the Jharkhand Industrial Park Policy, Jharkhand Food Processing Industry Policy and Jharkhand Export Policy. All of these are focused on improving the business environment and easing the process for investors. Also, our labour department is the only one in the country that is 100 per cent compliant with the labour regulations. We score 100 per cent on all four parameters considered in the assessment across all seven processes.

Among structural changes, we have initiated nearly 100 reforms to simplify and rationalise rules. This will translate into more job opportunities for skilled and unskilled manpower and create a more conducive skill ecosystem.

A timeline has been delineated for project approvals. Rules and guidelines for information have been simplified. Barriers to investment have been identified and suitable measures have been taken, especially with regard to labour, land, water and environment. I believe Jharkhand will excel with its comprehensive labour management system to enable entrepreneurs and investors to access services like licensing, online returns, renewal of licensing, etc, all on one portal.

According to census 2011, the gap between male and female literacy rates in Jharkhand was 21.42 percentage points, compared with the all-India average of 16.7 percentage points. What steps are you taking, especially in light of the centre’s Beti Bachao, Beti Padhao’ scheme, to remedy this?

No state can imagine its development without the participation and prosperity of its female population, and quality education. Our government is working on a paradigm shift for the education system. We have established a State Development Council, as well as a CSR Council. The schools in the remote areas are getting better teaching facilities. Even in colleges and universities, a two-shift system has been introduced. The lack of proper toilet facilities in schools had been an issue, especially for girls. We are ensuring each school gets separate toilets for boys and girls.

Security is another important aspect. We have started a helpline number for women, to address issues like eve-teasing. As a major step against female foeticide, strict actions have been mooted against those perpetrating this heinous act.

Sample Registration System’s 2010-12 figures for maternal mortality rate for Jharkhand stood at 219 per 100,000 live births, compared with the all-India average of 178. Has the situation improved? What steps is the state taking to remedy this?

We are still working to improve the conditions for the health care sector. There is a toll-free helpline 104 available to citizens. Besides, we have signed MoUs with leading diagonistic chains Medal and SRL for pathological labs at all government hospitals. The state government is also constructing 150 health sub-centres at 30 primary health centres. The departments of state health and family welfare, in partnership with Unicef, are distributing Vitamin A supplements for women and children. To expand and improve medical services at state hospitals in Hazaribagh, Palamu and Dumka, we have roped in technical experts and consultants. Maternal mortality rates have started showing diminishing trend.

The 2011 census data show that only 22 per cent households in Jharkhand had latrine facilities within premises, against the all-India average of 46.9 per cent. Amid the Centre’s commitment under the Swachh Bharat Mission (SBM), what steps is Jharkhand taking to improve the situation?

Under SBM, people are already being sensitised about cleanliness and the importance of basic sanitation. In Jharkhand, people in remote areas are not able to provide themselves good living conditions. Under our smart village programme, we plan to developing civic amenities and infrastructure akin to urban areas by 2018.

According to the Economic Survey of Jharkhand, 2013-14, the share of education, sports, and art & culture in total revenue expenditure dropped from 21.0 per cent in 2009-10 to 18.9 per cent in 2012-13. The corresponding figures for health & family welfare stood at 4.0 per cent and 3.5 per cent, respectively. What explains this drop in allocation to education and health?

These might be the result of poor infrastructure which our government is trying to improve. As for revenue from sports, art & culture, we are committed to encouraging this in our state. We have signed an MoU with Central Coalfields to set up a Jharkhand Sports Academy and Jharkhand Sports University.