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Prime Minister Narendra Modi's idea of cooperative federalism is on display as the Centre increasingly engages with states on policies many of which were partly executed by the United Progressive Alliance.
In a little over a month and a half the National Democratic Alliance has been in power, there has been discussions with states on drought, inflation, housing, cleaning up the Ganga, mining bans, a tobacco tax, drug prices, land acquisition and food security. The dialogue could mean anything from tweaks to drastic policy changes, officials said.
In perhaps one of the earliest responses to drought, the Centre has set the ball rolling for a 50 per cent subsidy on diesel and restructuring of crop loans, key demands from states when the monsoon falters. The Centre also allowed state governments to mark at least 10 per cent of funds allocated under the Rashtriya Krishi Vikas Yojana for drought management. This would immediately put around Rs 900-1,000 crore in the states' kitty for drought relief.
The Centre is teleconferencing with state government officials every week to understand their problems and gather updates on drought mitigation efforts. "It is a two-way system--on the one hand, state governments are being assured of help, at the same time there is also a sense of accountability," an official from the Union agriculture ministry who did not wish to be named said.
In another step, Union Agriculture Minister Radha Mohan Singh has written to chief ministers inviting their suggestions on framing a national crop insurance scheme.
On food inflation, the Centre called a day-long meeting of state ministers and officials recently and prepared a six-month plan to check prices. Union Food Minister Ramvilas Paswan has toured key states to figure out ways of tackling inflation. The Centre extended the Food Security Act by three months and is reviewing its provisions on demand from many states.
Responding to resentment among states over clauses in the Land Acquisition Act, the Centre held a discussion with them to understand their objections and is in the process of sending a report to the Prime Minister's Office.
Homes for all by 2022 was a Bharatiya Janata Party manifesto promise and a recent Centre-state conclave discussed rolling out a scheme for affordable housing soon. Representatives at last week's meeting adopted a national declaration on housing for all. Details of the scheme are not available though.
The Modi government is also reviving the bill to create a real estate regulator. Union Urban Development Minister Venkaiah Naidu said the earlier bill had lapsed and the government was looking to revise it incorporating suggestions from states and industry.
In health, consultations with states have been fast-paced. These include deliberations on setting up of AIIMS-like institutes in states, promoting safe and nutritious food, encouraging primary and preventive healthcare measures and an anti-tobacco drive. Besides writing to chief ministers, Union Health Minister Harsh Vardhan has met the chief ministers of Rajasthan, Kerala, Nagaland and Chhattisgarh.
There is increased coordination in monitoring drug prices. The National Pharmaceutical Pricing Authority has asked state governments to identify expensive and commonly used medicines they think should be brought under price control in the public interest.
On environment-related issues, a major hurdle for industry during the UPA regime, states are being consulted as well. If no-go areas were hazily defined by the previous regime for mining, the current dispensation is in the process of describing "pristine forests" to draw a line for industry. Even for cleaning up the Ganga, the Modi government is in a huddle with stakeholders, including states.
