Predatory State Writ Large

The central government's ministry of environment has given its clearance for the setting up of a nuclear power plant in Jaitapur, Maharashtra, on the Konkan Coast. This is an ecologically sensitive area, with fragile bio-diversity. Jaitapur is close to Ratnagiri, where the world-famous Alfonso mangoes come from. A nuclear accident here would be an unmitigated disaster - affecting even Goa, which lies a little south. It is also a fact that Parliament has passed legislation to the effect that, in case of nuclear accidents, liabilities will be "limited." So, if Ratnagiri mangoes and Goan tourism are wiped out, no one will bear responsibility.

But is a nuclear accident possible?

First: If such an accident was impossible, why would Parliament be so keen to pass legislation limiting liability - and why would the suppliers of equipment insist on such legislation? Indeed, such legislation provides them with the incentive to supply sub-standard equipment.

Second: The news report on the environmental clearance for the Jaitapur nuclear power plant contains this chilling sentence:

Jairam Ramesh, central environment minister, "pointed out that his ministry has no jurisdiction over radiology emission — a major concern among locals and environmentalists."

I also found this statement nonsensical:

"We need to change our fuel mix as 35 per cent of our carbon dioxide emissions come from electricity,” said Ramesh.

According to me, what we in India need to do urgently is change our electricity supplier - from The State to private businessmen. Let these private businessmen decide on the fuel. And let there be full liabilities in case of accidents - thereby giving them the incentive to take full precautions.

When I was in Mangalore many years ago, I was pleased to find that a barge-mounted power plant had come up on the sea, built and operated by a private company, using naptha (or was it gas?) as fuel. This is the way to proceed - especially in this ecologically sensitive Konkan Coast. If barge-mounted power plants become the norm, there would be no need for what the Maharashtra government has just announced: that "a group of ministers was working on the compensation package for the 2,335 farmers who are expected to be affected by the project." 2,335 farmers means more than 10,000 individuals if we include their families - and many thousands of hectares of precious land. This is, once again, a violation of Property.

The news on television mentioned that this nuclear power plant was being hurriedly cleared with an eye on President Sarkozy's visit to India - as this plant is to be built by the French company Areva.

This is a very big black mark on the CONgress-led government of Chacha Manmohan. His emphasis on nuclear power plants operated by The State is flagrantly anti-people - and anti-business as well. It is also anti-growth - because chronic power shortages are crippling economic activity throughout this vast sub-continent. Privatisation of power ought to have been top priority.

I found another black mark against Chacha's government this morning, in this editorial in Mint, which comments on his management of State finances. I quote:

The second supplementary demand for grants, tabled in Parliament in this session, when combined with the first one, pushes up the government’s spending plans by Rs74,400 crore, close to 1.1% of GDP, roughly 7% higher than the original budget. Much of this expenditure is on account of food and fertilizer subsidies, oil under-recoveries, defence and internal security expenditures. This spending will practically wipe out all the surplus revenue garnered from the 3G spectrum auction. In effect, recurring expenses have been met by the sale of a one-off item. There are plans to fund future expenditures of this kind by selling the government’s stake in public sector undertakings.

As the italicised portion in the quote above shows, our The State is WASTING the money it has received from the 3G auction - and it is this that should be considered a scandal. The huge amounts 3G operators have had to pay for spectrum is affecting consumers, who have to pay more for 3G services: lose-lose. Further, the manner in which 3G revenue has been wasted indicates that the "corruption" in 2G spectrum allocation was a "good thing" - for private businessmen saved money that The State would have wasted anyway. This ToI blog post by Rajeev Mantri echoes my sentiments.

Whereas Chacha Manmohan's record in misgovernment speaks loudly for itself, I found Ratan Tata's endorsement of his premiership most surprising. In this long interview, one that was broadcast on TV yesterday, here is what the chairman of the Tata Group said of Manmohan:

...he [Manmohan Singh] is a tremendously good man, we’re very lucky to have a prime minister like him.… he is one person who is truly above the allegations that have been thrown at him, a person who we are very lucky to have because it is his face that has been the face of a transforming India. And it is this person who has commanded the respect of leaders in major countries.

Let us now turn our attention to how poor people and very small entrepreneurs view our The State. Niranjan Rajadhyaksha, editor of Mint, has written a brief column on this today, from which I quote below:

The poor live with corruption as a fact of life. Almost every transaction they have with the Indian state involves payment of a bribe. The Indian chapter of Transparency International published a study in 2008 on corruption faced by below poverty line (BPL) households across the country. Eleven government services were rated according to the prevalence of corruption. Transparency International points out that the highest corruption is in need-based services that are monopolies (police) or involve asset creation (land records or housing).

Rajadhyaksha calls for police reforms and computerisation of land records. I would have preferred the words Liberty and Property. That is - not "police reform" but "constitutional reform."

Thus, to me, there is no doubt about it. Ours is indeed a Predatory State. Even the ministry of environment is a predator. If "environmental clearances" have to be given, these should come from local institutions - and not the central State.

To poor people, the police and the land administration are predators.

We Indians must think of another way - Liberty, Property, Localism, Catallaxies.