Senior IAS officers as District Collectors : Vanam Jwala Narasimha Rao

Senior IAS officers as District Collectors

Vanam Jwala Narasimha Rao

The Hans India (21-07-2017)

With the formation of 21 new districts in Telangana State, there are 31 districts and formation of these many districts is a revolutionary reform in the administrative sector. The formation of new districts paved way for the young IAS officers to become District Collectors and Joint Collectors. It appears that many of them are doing a good job and discharging their duties and responsibilities with dedication and commitment to the job. However, sometimes there is a haunting doubt that here and there all is not well and always it is not on the expected lines. But one must weigh matters correctly to find out the truth. There is a need to have a review and survey on the implementation of development and welfare programs by some of these young IAS officers. One should ascertain with what commitment and dedication all the officials are working. There are apprehensions that some of these young IAS officers are unaware of the social conditions and the political equations prevailing in the districts. It may be true or may not be. There may be some lapses due to ever changing social scenario, inexperienced approach to matters and inadequate training on good practices as well as lack of well laid conventions.

The Indian Administrative Service, referred to as the steel frame of the country by Late Vallabh Bhai Patel came into being after the independence replacing the then British government’s Indian Civil Service (ICS). All those selected for the IAS are brilliant and often come from divergent fields of academics from literature to Medicine and they are cream of the society. Their selection is also done by the UPSC with lot of filtration from Prelims, Mains and Interview and it is done without fear or favour. They have the protection under the Constitution. Sardar Patel used to say that these officers have nothing to fear in discharging their duties and the entire future of the country depends on them.

After a year’s rigorous training in Lal Bahadur Sastry National Academy of Administration Mussorie, they will undergo a year’s training in their allotted states as Assistant Collectors coupled with training in State Administrative Training Institutes like Dr MCR HRD IT and then they are posted as Sub Collectors in a sub division. That is how as Sub Collectors they, for the first time have a direct touch with the people and taste the power and get an opportunity to serve the people. There are many Sub Collectors whose great service people remember for years to come. After the posting as Sub Collector later they become joint Collectors, Project Directors of the Integrated Tribal Development Agency (ITDA). After seven or eight years, they will get a chance to become the Collector. With the formation new districts in Telangana, IAS officers having just four years of service have got a chance to become the Collector. The Magisterial powers the Collector enjoys are unique and in no other position however higher it may be will not carry these.

The specialty of IAS cadre is that of working as a District Collector. Besides the revenue powers, they should monitor the implementation of welfare and development programs and discharge many other responsibilities which exceed the expectations. Despite all the training, heavy job burden may lead to couple of mistakes and lapses.

After serving as District Collectors for about a decade they are posted as heads of the departments, secretaries in the State Secretariat and as Managing Directors of Public Sector Undertakings. They often got these promotions based on their caliber, capabilities and at times due to their proximity to the politicians in the districts. There is a need to make some changes in the set up based on the changing situation. Some feel that it is better to post some senior IAS officers as the District Collectors.  Maybe it is necessary to appoint some seniors in the districts for the better implementation of the welfare and development programs in true letter and spirit.

It may be better to appoint at least in one third of the districts, senior IAS officers of the cadre of Principal Secretary and Secretary as the District Collector! Their seniority will be useful for the administration and the good governance besides getting yet another chance to directly interact with the people and understand the issues. They would be able to understand the rural India. If such a practice is not in vogue, then it should be initiated now. Officers, who are not connected with the schemes that are being implemented at the village level, should not be posted in senior positions just because they are seniors. The Junior IAS officers should work under seniors’ guidance.

There is also a discussion on what kind of relationship should exist between the civil servant and the people’s representative.  Ours is a Parliamentary democracy and we follow the British practices and conventions though sometimes at the implementation level we have evolved our own system.

In the Armstrong Memorandum prepared in the Britain there is clear mention about the relationship between the civil servants and the people’s representatives as well as the duties and responsibilities of the civil servants. According to our Constitution, people’ representatives are accountable to their respective Parliament or Assemblies while the civil servants are accountable to the Ministers. It is understood that the Ministers are accountable to the government. The civil servants have a responsibility to offer their services to the government and the people no matter who becomes the chief minister or which political party is in power and above any political considerations. Their first job is to gain the confidence of the Minister for whom they are working.  The civil servant’s job does not change nor their duties whenever there is a change in the government.  They should offer their valuable suggestions to the minister and government on the administrative matter and cooperate with them. Above their likes and dislikes, they should cooperate and help the government in implementing the promises that the party in power made in its election manifesto.

If the civil servant fails to give proper information, gives wrong advice and causes delay in the Minister’s decision-making process, it shows their irresponsible behavior. The Armstrong Memorandum clearly states that once a decision is taken by the Minister even if it is wrong, the civil servant should implement it with more zeal and rigor. If there is mutual faith and confidence between the Minister and the civil servant the efficiency of the government administration, ability, wisdom increases. It is better that both the ministers and civil servants follow the UK best practices and traditions here. The political bureaucracy and official bureaucracy should work in close coordination and cooperation. Against this backdrop it may be good to appoint some senior IAS officers as the district collectors for the better implementation of programs and schemes for the development of rural areas and for a better administrative set up as well as for good governance.

DOUBLING OF FARMERS’ INCOME ....VIEWS OF THE GOVERNMENT OF TELANGANA : CM KCR in NITI AAYOG MEET

DOUBLING OF FARMERS’ INCOME

VIEWS OF THE GOVERNMENT OF TELANGANA

CM KCR in NITI AAYOG MEET

Chief Minister K Chandrashekhar Rao, during the Niti Aayog meeting held by PM Narendra Modi, in New Delhi on 23^rd April 2017, pitched for various measures to pull the farming sector in the country out of distress.

CM said: “The Government of Telangana is taking several steps to address the agrarian distress and to revive the farm sector in the State and also to revamp the rural economy by reviving the traditional activities such as, sheep rearing, fisheries dairy, etc.  Outstanding agricultural loan of Rs.17, 000 crores was already waived in four installments, thereby benefiting more than 35 lakh farmers in the State.  In addition to this, we have recently announced an innovative scheme to provide investment assistance of Rs.4000/- per acre, in both the crop seasons, towards purchase of inputs such as, seeds, fertilizers, pesticides, labour costs, which will  benefit 55 lakh farmers cultivating over 1.50 crore acres in the State during the Kharif and Rabi seasons. This will go a long way to revive the agriculture sector and help farmers to come out of the vicious cycle of debt trap.  Government of India should support such initiatives by the State Governments to address the present agrarian distress”. 

“In order to achieve the objective of doubling farmers’ income in five years, the following concrete steps need to be taken urgently.

(1)    Entire country needs to be divided into crop colonies for specific crops, based on agro-climatic regions, so that the Minimum Support Price facility can be effectively ensured to benefit the farmers by preventing avoidable glut of certain commodities in the market.

(2)   While agriculture production has increased in the country, productivity has not increased for most of the crops.  For this purpose, continuous Research and Development is required and Government of India should support research through institutions located in different States.

(3)   Vulnerability of the farm sector has to be minimized by taking the following steps:

·           Expeditious completion of all ongoing irrigation projects by providing required support to the State Governments.

·           Supply of adequate and quality power to the farm sector at affordable rates.

·           Reforming the existing insurance schemes by removing the present operational difficulties.

(4)   A thorough review is needed on imports of food-grains, oil seeds, oil products, textile, etc. so as to ensure that the produce of the country does not have to face undue extraneous competition or market manipulation.

(5)   Agro-based industries must be encouraged pro-actively to facilitate value addition and enhancement of farmers’ income.

(6)   Activities supporting agriculture which are in the allied sector, such as dairy, sheep rearing, fisheries, poultry, farm forestry, etc. should be exempted from the purview of income-tax, as these play a significant role in providing supplemental income to the farming community.

(7)   Government of India has enacted the Compensatory Afforestation Fund Act, 2016 and notified the same as Central Act No. 38 of 2016 on 3^rd August, 2016. It is understood that the Ministry of Environment, Forests & Climate Change is in the process of framing of rules and accounting procedures for effective utilization of CAMPA Funds. The process of consultation and drafting of rules is taking unduly long time, leading to inordinate delay in release and utilization of funds.

(8)   There is a hue and cry among the farmers due to the scarcity of labour force in agricultural operations. In order to make MGNREGA more useful and productive to the agricultural operations, there is an urgent need to dovetail MGNREGA to agricultural operations, by including it under the permitted activities under MGNREGA.  It is suggested that 50% of the unskilled wages may be paid under MGNREGA and 50% by the farmers concerned.  It will not only help farmers in timely agricultural operations, but also help ensure employment to the weaker sections of the society.  This may be extended to those States who opt to avail this”.

Rights of State .... New Chapter in Center-State Relations : Vanam Jwala Narasimha Rao

Rights of State

New Chapter in Center-State Relations

Vanam Jwala Narasimha Rao

On Sunday the 16^th April 2017, when the Telangana Backward Classes, Scheduled Castes and Scheduled Tribes (Reservation of Seats in Educational Institutions and of Appointments or Posts in the Services under the State) Bill, 2017, was passed in the Telangana State Legislative Assembly and Council, it was a historic moment. Simultaneously, yet another historic event has also been unfolded, by way of the firm resolve of Chief Minister K Chandrashekhar Rao asserting the rights of the State and opening up a new chapter.

It may not be out of context to recall here, the PM Narendra Modi statement while he was Gujarat CM, on the 2012 Republic Day that the Center's “systematic onslaught on the federal structure” is causing concern. He said then that, “It is high time the Center realizes that giving to the states what rightfully belongs to them will not weaken the Center. The states must co-ordinate with the Union Government and not remain subservient to it. Co-operative and not coercive federalism must be the norm in our country”.

 Perhaps it is with the same courage and fervor CM KCR confessed in more than several words his strategy towards preparing the ground work for getting the approval of the enhanced reservation quota for the Muslim Minorities in the form of BC-E category as well as that of Scheduled Tribes. During his interventions in the Assembly debate, the CM has categorically said that, “I am not going to beg! I am going to fight! I will mention it in the Niti Aayog meeting. I will approach the Apex Court if needed.”

The CM cited the examples of five states in the country, including Tamil Nadu, which are implementing more than 50% quota. He said the Supreme Court has allowed more than 50% quota under special circumstances, which, he claimed, also prevail in Telangana. The “Quantifiable” and “Impeccable” data that has been mentioned by the Apex Court in its judgment for increasing of percentage of reservations by any state is prudently applicable in case of Telangana according to CM.

The CM said, “The Center should also allow the States to take decisions on certain important policy matters like the reservations based on each state’s requirement and population as well as other ground realities. In a vibrant and matured democracy like ours, the Center should allow the State’s to take a call. The situation now prevailing in the country is vastly different from that of 1947 when the country attained independence. We have made our Constitution 70 years ago. Now there is an increase in population, more awareness and more opportunities. People are demanding more and more. If we want our country to progress and move forward, leave the reservations issue to the respective states. When we fought against injustices and discrimination meted out to Telangana everyone supported us. Unity in diversity is our principle. Decisions should be taken accordingly or else there will be clashes and movements”. 

In this context, he mentioned about the SC Categorization issue, which had broad support from the people in the Telangana State. CM said that: “It may not be an issue in UP but in Telangana it is a big issue. Such issues should be left to the each state government to take a decision. The center should respect our decision. Parties may change at the Center but the Central government is a continuous entity. Tamil Nadu Passed the Bill during the UPA regime and NDA were left with no option except to continue with it”.

This move clearly brings to the forefront perhaps CM’s desire to convert the issue of reservation hike for the Muslims into a national debate and if needed to take along with him the national leaders like Mulayam Singh Yadav of Samajwadi Party and Mayavathi of the BSP. According to Newspaper reports, midway through the Assembly debate on the bill CM closeted with available TRS Party Parliament Members and asked them to hold preliminary meetings with national leaders and prepare the ground for his meeting with them during his next visit to New Delhi. 

As they saying go, ambition should be made of unyielding substance when it comes to helping the needy. This ambition is in abundance with the CM who has taken an historical decision to come to the rescue of the poor and the neglected sectors in the society. Be it fertiliser subsidy of Rs 4000 per acre, total loan waiver and free power supply to farmers, pensions for the single women, Beedi workers, financial assistance to the pregnant women and KCR Kits to the mother and child, or enhancing the reservation quotas to the BC-E Categories and STs…. All these historical and first of its kind in the country policy decisions have one aim in common, all round happiness and prosperity in the Telangana state and its people.

Bold and commendable leader the CM is, on Sunday he himself has piloted and introduced the historic Bill in the Special Session of the Telangana state Legislature, enhancing the quota for BC-E category from 4% to 12% and ST reservation from 6% to 10%. While the Congress and MIM supported the bill, the BJP opposed it. CM in opening brief said that the quota is being enhanced to fulfill one of the major election promises that his party had made. He said due procedure was followed and would be followed to implement the enhanced quota. KCR also mentioned about the necessity to increase the quota for Scheduled Castes by 1% to take it to 16%, which would in proportionate to the SC population in Telangana. Similarly, he said the quota for the Backward Classes would also be enhanced and the BC Commission has already been assigned the task to conduct a comprehensive study on the socio-economic status of BC communities and come up with recommendations to increase the quota.

The Chief Minister expressed confidence of overcoming all legal hurdles to implement the enhanced quota, which touched 62% as against the 50% ceiling set by the Supreme Court as per judgment in Indira Sahanee’s case.

The BJP’s strategy in the Assembly went awry after the Chief Minister intervened in the Council to read out media reports of Modi’s statement made in BJP’s national executive meeting in Bhubaneswar. “It is sheer good coincidence that the PM’s remark should come when a historic debate is on in the Council. PM Modi talked about the backwardness among the Muslims and he also talked about the inclusive growth. This gives me hope that the Centre accepts out bill,” KCR said and added that the way was now clear after the Prime Minister’s observations. “At least you should support the Bill in the wake of Prime Minister’s remarks,” Rao advised BJP.

In all, the Sunday Special session of the State Legislative Assembly and Council which passed the enhanced quota bill for the BC-E and STs, proved that CM KCR has the political will to implement policies that are beneficial to the people in the State. One of the quotes for a true leader is “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” This amply defines CM KCR. What else can be a proof than a letter written by former minister, famous Kapu community leader Mudragada Padmanabham to CM KCR praising him over the passing of the enhanced quota bill and commending him as the true leader of the people? End 

Studying in Osmania University fifty years ago : Vanam Jwala Narasimha Rao

Studying in Osmania University fifty years ago

Vanam Jwala Narasimha Rao

As student of Ricab Bazaar High School in Khammam, and, after passing out in Higher Second Class in the HSc (Higher Secondary Certificate) examination, I enrolled myself in the PUC (Pre University Course) with Mathematics, Physics and Chemistry as optional group subjects in SR and BGNR Government Arts and Science College in Khammam, affiliated to Osmania University then, during 1962-63 Academic Years. That was how I became a student of Osmania University for the first time. There were English, Telugu languages and General Studies subjects too in the curriculum. Having studied in Telugu medium till H Sc and then switching over to English medium at PUC level was a bit difficult task for which gradually we were accustomed. SR and BGNR College, under the private management, was the first college that was set up in Khammam as there were no Colleges in the Telangana region except in Hyderabad in 1956.  The then Chief Minister Late Boorgula Ramakrishna Rao decided to have atleast one college in every district resulting in one in Khammam too.

After entering the portals of a degree college in PUC, I felt elevated. Telugu, English, General Knowledge were taught to the entire Optional groups in combined sessions irrespective of MPC, BPC, Commerce, Economics and Geography. Physics and Chemistry subjects were taught commonly for both the MPC and BPC students. Mathematics was taught for only MPC students. English subject used to have poetry, prose and Grammar. We had very interesting essays in English prose, like, “On Seeing People Off,” On Forgetting”, “On Other People’s Jobs.” We were enthused by the poems of William Shakespeare and William Wordsworth. The lecturers who taught us practical classes for the science subjects were known as “Demonstrators” and they were a bit below the Lecturer in the status. I still remember the instruments like Pipette, Burette, and Common Balance which we used for practical sessions.

PUC results were out and as expected I secured just the Third Division thanks to the extracurricular activities mostly college politics in to which I was propelled by one of my cousins. Though I got fairly good marks in Mathematics, Physics and Chemistry I could not secure required marks to get a seat in an Engineering College. Hence I took admission into BSc (MPC) in the same College.

In those days if anyone asked as to what a degree student was studying the answer invariably was that they were studying “first year” and add by saying “First Year Rest year!  As there was no public examination at the end of the first year degree, students used to take it very lightly the internal examination. First year degree students were automatically promoted to the second year. In second year there were university examinations for Languages and General Studies. There were six papers then. In the final year there used to be final examinations for the optional subjects.  There were ten papers to be cleared at a time including four in Physics, the extra being Modern Physics. There were no holidays in between two examinations except for Sunday. We had to memorize the three years study to appear for the final examination! Similarly, for Languages, we had to remember what we have studied for two years.

After completing my first year BSc, I wanted to do my second and final year degree in Hyderabad and hence made my trials. DV Dwaraka who was working as Mathematics professor in OU helped me in this.  New Science College Principal C Sudarshan admitted me in June 1964 in B Sc second year in Hyderabad. The College was established on July 17, 1956 by GS Melkote and Sudarshan under the banner the New Vidya Samithi.  The College, which was in Narayanguda, had many prominent lecturers as faculty members. Our class was always vibrant and full of activities.  Some construction work used to take place regularly for additional accommodation as the college was in high demand.

As far as the faculty was concerned it is no exaggeration to say that we had the best of teaching staff, which no other college had then. We had Andhra Mahabharata Upanyasalu as Telugu Text and Purushothammudu as non Detailed besides Halikudu as the drama text.  Out English Text was a compilation edited by EF Dad and it had one essay by AG Gardner. EM Foster’s “A passage to India” was our Non-detailed Text.  For mathematics, we were to study in three parts, Algebra, Trigonometry and Coordinate Geometry. Sahfi-ul Haq used to teach us Algebra, Bhaskar Rao Coordinate Geometry and Kuppuswamy Trigonometry.  Hari Laxmipathy and Prabhakar taught us Physics. We had Organic, Inorganic and Physical parts in Chemistry (Theory). Three different lecturers used to teach these three parts. I still remember the Benzene Ring drawn by Organic Chemistry lecturer Y Suraynarayana Murthy on the black board.  Inorganic was taught by Principal Sudarshan himself. I Think YSM taught us Physical Chemistry too.

While I was in Degree final year there was a clash between the Student union leaders over OU Vice Chancellor Prof DS Reddy. One group was lead by K Keshav Rao, former Congress leader and now TRS Rajya Sabha member and Former Union Minister S Jaipal Reddy and the other group was lead by M Sridhar Reddy, Pulla Reddy Jansangh Narayana Das and other left wing student leaders. In 1966, the then Chief Minister K Brahmananda Reddy removed Prof DS Reddy who was VC of OU since 1957. In his place a Principal from a Guntur College was appointed. He came and could not take the charge as students were protesting. Keshava Rao and Jaipal Reddy supported the decision taken by Brahmananda Reddy. The only fault committed by Prof DS Reddy was to ask for autonomy for OU! Brahmananda Reddy tried bringing an Amendment to the Act to remove Prof DS Reddy who in turn approached the High Court and then Supreme Court and finally won the case. He continued as VC till 1969. In 1968 when Telangana agitation took birth he was the VC and later Prof Ravada Satyanarayana became the VC. When the Court ordered continuance of Prof DS Reddy as VC, the university had given grace marks to the students. Though I did not write the examinations, I got 15 Marks in all the subjects due to grace marks.

My degree final year examinations took place during March-April-May 1966. I wrote mathematics examination and thought would not get good marks. Hence, though, I attended the examinations I did not practically write any.  As expected I failed in all subjects except Maths.  I did not appear for the Supplementary exams and after two three attempts in March 1968 I have cleared Maths and Physics and cleared Chemistry in September. That was how my first phase of Hyderabad life ended.

After my BSc in Hyderabad I did my MA from Nagpur and later joined in job as a Librarian. For the professional degree I again joined OU Arts College during July-Aug. 1973 in Library Science Course. Our classes were held either in Arts College or in the Library building. It was a great experience. The final examinations were held in July 1974 and I got University Second rank in August when the results were declared.

That was how my association with OU started 52 years ago came to an end 42 years ago. I fondly remember those days in OU, the college campus, travelling to Arts College by bus, wonderful time spent with friends, student politics, playing Cricket…and there were many, many more memories that haunt me till date. What a wonderful time it was!

Demonetization…Nation in big Queue : Vanam Jwala Narasimha Rao

Demonetization…Nation in big Queue

Vanam Jwala Narasimha Rao

People are hardly in a position to understand as to what exactly happened when the Prime Minister of India Narendra Modi on 8^th November at 8 PM announced demonetization resulting in stripping the Rs 500 and Rs 1000 currency units of its status as legal tender. Prime Minister, obviously on the advice of one or two close aids of him, unaware of the consequences, might have thought that his decision would make him a Great person and history will record so. The surprise decision of the Indian government to demonetize will certainly impose short term costs. Government described the decision as an act to eliminate black money “which casts a long shadow of parallel economy on our real economy”.

Unfortunately, as a result of this, the whole India is in a big Queue! Millions of households are struggling to cope with the immediate situation. All streets and market places are empty and everyone whether he or she, young or old, possessing black or white money of Rs 500 and Rs 1000 are left with no option except to stand in long queues in front of banks. Money whether white or black, makes the nation dynamic. The money that is in circulation in whatever form is the wealth of the nation. Demonetizing means demonetizing the country and devaluing the country and money. In a poor economy where bulks of the last mile transactions are done in cash, a measure like this was bound to cause fear and panic, and also scarcity of legal currency as people hoard it for safety-net purposes.

This is a big blow to every ordinary common person of all categories. With no money in circulation and with markets having a desert look, it is like a Bharat Band….and that too for fifty days. Imagine the loss the nation incurs with this. The surgical strike on Pakistan about a month ago is better than this, in the sense, that it killed the targeted one once for all, where as demonetization makes the people suffer for long before they are actually killed. Between the announcement of demonetization and actual operations, everywhere an unexpected and unhealthy scenario prevailed.

Whom is the Prime Minister dealing with? Is it the people and the country at large or someone else? India is a big country with varied problems and through demonetization PM Modi has thoroughly gone wrong and created added problems. He pushed the country 30-35 years backwards….an irrevocable backwards. After late PM PV Narasimha Rao’s economic reforms enabling even the poorest of poor possess high denomination currency, this is the best example of digression.  

There are no reliable estimates of the black economy. It is however said that an estimated 17.5 lakh Crores of money is in circulation and whether in black or white 86% of this amount is in higher denominations either in Rs 500 or in Rs 1000 notes. It is also estimated that another Rs 3-to 4 lakh crores of counterfeit money is also in circulation. The remaining 14% is in small denominations. The demonetization literally pushed the 86% part of the total money in circulation out of market. While this is so, for Telangana state for exchange of notes though Rs 6000 crores was allocated it was only just Rs 110 crores that was actually released on the first day in which major portion is in the form of newly printed Rs 2000 note. At best each bank may be able to distribute a maximum of one crore rupees as every individual is restricted initially to Rs 4000 per day and later enhanced to Rs 4500. In any case the entire 86% of high denomination notes will not be deposited in the banks.

How much of this black money will now come out into the open because of this demonetization of high denomination currency remains a matter of assumption. Much of the black money is held in land, property, stocks, gold or foreign currency. Even if the entire black money is deposited in the banks, it will again flow back into the hands of the same people in a different path as the basic job of a bank is lending and the beneficiary is top industrialists. Global experience has been that demonetization remained a one-time measure, and the black economy started building up all over again once the government let its guard down. This has been our experience too with the 1978 episode when the Rs 10,000, Rs 5,000 and Rs 1,000 rupee notes were demonetized.

What is the actual value of Rs 2.5 lakhs which an individual is allowed to deposit in banks without any questions not requiring IT scrutiny? These days even a small agriculturist, a provisions vendor, a shepherd, an employee, a small hotel owner or to that matter almost all middle class people keep with them more than this amount which is purely white in nature. The cost of land these days is anywhere Rs 2.5 lakhs per quarter of an acre…the cost of a sheep is anywhere Rs 50, 000. This needs to be given thought. Disabling cash of an individual over and above 2.5 lakhs is a long term disaster on nation’s economy. This also amounts to devaluation of assets and its impact will be snowballing.

What has happened, what is happening and what is likely to happen is not understood by even some of the best of the bureaucrats at the helm of government business in general and that of finance in particular. Even the best of the economists seems to be not aware of the consequences.

Perhaps this might be the reason why, as reported in press, Chief Minister KCR took along with him the Chief Secretary, the Finance Secretary and his own Principal Secretary to the Governor-the Head of the state to apprise him the consequences of demonetization, the pros and cons and the effect on state finances in future. To quote a media report: “the Chief Minister is understood to have explained to the Governor with supporting statistics about the adverse impact the Centre’s demonetization decision would have on Telangana….The Chief Minister is also understood to have highlighted the problems to be faced by small traders, who would generally rely only on cash for their transactions, due to restrictions on exchange of currency….”.

The State Owned Revenue (SOR) of Telangana State during the first six months from April to September during the current financial year registered a growth of 16.1% (from Rs 40, 400 Crores during 2015-2016 to Rs 46, 932 Crores means about Rs 6500 Crores rise). In fact the State owned Tax Revenue (SOTR) itself too had a growth rate of 13.5% during the same period (from Rs 21, 390 Crores to Rs 24, 168 Crores). The GSDP growth rate during the same period is 21%. The expenditure during the same period accounts for Rs 49, 594 Crores and if we add the out of budget expenditure it would be much more. In this proportion both revenues and expenditure should register more in the second half of the financial year. Now, with demonetization the scenario would be totally different and will have a serious effect on the state economy.

In Telangana as in other states debt services are mandatory. There will be essential and inescapable and unavoidable expenditure. If there are no receipts due to market collapse where from the money will come to the treasury? For instance employees salary bill, payments for welfare measures like Aasara pensions, rice scheme, Kalyanalaxmi, shadimubarak, two bed room houses etc which accounts for almost Rs 5600 Crores per months. Will there be any cuts? Or deferring to a later date some of these? There are also developmental activities and expenditure for irrigation projects.

This may not be just the case with Telangana….perhaps in every state with minor changes and proportionate changes…and ultimately in the whole of the country including the central finances will adversely affect if not checked scientifically. The economy of every state collapses. The situation would be worse in states with rural economy and tribal economy base. Every state has to die. It is just like abruptly cutting the pipeline or switching off lights in a room suddenly and inviting darkness.

The world over natural phenomenon is nations undergo rapid changes. They undergo evolution due to various reasons. The experience however reveals that even in the worst of calamities wise men prevail and survive. One of this is in the form of black money circulation. Whether it is possible to cleanse this or not depends on lots of factors. It however requires a scientific process and an acceptable process. The way this is done now in our country is different and a deviation from this. India is shaping as one of the biggest economies in the world. Purchase power has gone up multi-fold. In the process of this development, whether accepted or not, those who have black money are also partners in a way. This is where we should think how best they may also be brought in to picture for a better clean-up process. Ours is a cash based economy and not cheque based or on-line based. Yes…it is agreed that the black money holders are to be disarmed. Once upon a time the scenario was that, common men were angry on black money holders. Today it is different and in the ever changing scenario everyone possesses the so called black money-may be in a different form. In a way this is their hard-earned savings. 

According to an expert who was associated with RBI in a very senior position and also with experience of working in central government’s ministry of finance, all currency issued by the Reserve Bank carries a promise by the Governor to pay the bearer a sum equivalent to the value of the currency which is a legal obligation. He says that, curiously, neither the government nor the Reserve Bank has actually used the term “demonetization”. The press release issued by the government talks only about “cancelling the legal tender character” of the high denomination notes, raising questions about whether they are drawing a fine distinction between delegalization and demonetization.

            According to him the extent the high denomination notes are destroyed as they were not returned to bank, the liability of the RBI should come down by that amount. The amount may be anywhere between 4-6 lakhs crores. Will the Reserve Bank treat “the promise to pay” as a continuing liability and transfer an amount equivalent to the wealth destroyed to a special reserve? Or will it treat this as an extinguished liability and account for it as “profit”?

Several questions arise here:

Can the Reserve Bank withdraw from its obligation to pay the bearer a sum equivalent to the value of the currency? Therefore, is there a subtle distinction between “cancelling the legal tender character of the currency”, the phrase used by the government and RBI, and demonetization? If the Reserve Bank decides on treating the liability as extinguished, what is the cut-off date when it will happen? How will the RBI treat the reduced liability – as a special reserve on which the government has no claim or as regular profit which lawfully has to be transferred to the government? If the existing law is unclear on this, will the government amend the law so as to establish its claim to this money? If indeed, the “profit” is to be transferred to the government, how will the transfer of such a large amount be managed? In particular, how will it be phased out so that it is non-inflationary? Is the government well prepared on this?

Against this background, there would be severe hardships to people for activities like marriages (particularly in this month), vegetable purchase, agricultural needs, construction labor wages needs etc. No one can buy even a bottle of liquor or a branded shirt. Then where from the tax come to the governments? Media already reported how the hotels and theaters are with an empty look.

It is almost chaos everywhere and as such it is high time that the Modi government initiates steps to come to the rescue of common people. Real estate sector in this country which is almost a professional activity has come to a grinding halt. The money for various real estate transactions that has been given as advance from Kashmir to Kanyakumari to a tune of thousands of crores with yesterday’s value is in doldrums. No agricultural land sales are reported and even if any they would be distress sales. Normal life is disturbed. Entire economic dynamics have changed. Small traders who buy in whole sale and sell in retail are badly affected. Industry is collapsing. State Governments might face paralyzing affect. A currency ration is seen and felt. The situation is explosive. There is every possibility of artificial scarcity of everything. This will have cascading affect.   

Why not these issues be addressed? Why did not the government prepare the common man for this? Where is the preparedness for an easy exchange of high denomination notes? Did the government make available in adequate quantities in the banks? The answer is no. Is there any estimate in advance as to how many normal people would be put to unavoidable trouble? Why should there be a panicky situation?

Perhaps one option could have been making yet another voluntary disclosure offer, say on 50-50 percent basis-an amnesty scheme with additional benefits. In which case, it might have been possible, for both the black money holder and government getting equal benefit, the former getting back in white form and the later increasing its income. The black money holders, in the alternate, should also have been offered a chance to invest in various infrastructure development programs of the government. That might have paved way for a vibrant India. There should have been a positive approach for cleaning black money instead of a negative one.

It is evident that majority of Chief Ministers are not in favor of Modi decision. Almost none of the CMs including from BJP ruled states have come out openly in support of Modi decision. Why? Almost all renowned economists, from India and abroad, are critical of Modi decision. Will all this lead to large scale dissent?

A person of Prime Minister’s stature should understand the country and its needs…the difficulties of common man when a decision is taken. There cannot be any place for self-righteous and complacent attitude. One cannot be angry on even a small section of populace not to speak of entire population. There cannot be an attitude of “point of no return” and “I am always right and others are always wrong”. Prime Minister Narendra Modi is visibly angry…angry on all those who did not pay attention to his earlier warning to deposit black money as voluntary disclosure.  Anger is no solution. Revenge on people is no answer. Comments like “even if I am burnt alive...” are also in bad taste.

Why Modi is antagonizing all sections? The question before PM is whether he would sustain the wealth of the country or destroy? No one is against demonetization but the timing, process and preparedness is debatable. End

Needless row over Creamy layer : Vanam Jwala Narasimha Rao

Needless row over Creamy layer

Vanam Jwala Narasimha Rao

The Hans India (03-01-2016)

State Government decision to implement creamy layer formula in reservations is opposed by some people belonging to the Backward Class. The Creamy Layer is used to differentiate socially economically developed persons in a caste from those who are deserving of reservation and empowerment. In fact Government of Telangana in November 2014 has merely adopted all the criteria to determine the creamy layer among Backward Classes and the annual income ceiling limit as fixed by the Ministry of Personnel, Public Grievances and Pensions, Government of India and as adapted by the Government of undivided Andhra Pradesh, as Rs.6.00 Lakh per annum for determining the Creamy layer among the Backward Classes. However income from the salaries and income from the agricultural land shall not be taken into account.

To attain an egalitarian society, there is an urgent need to remove socio-economic inequalities. Benefits of reservation must be delivered to only those who really deserve it. Unless the creamy layer is removed from admissions and service reservation, the benefits would not reach the actually deserved. In one of the important cases Supreme Court has aptly observed that reservation is given to backward classes until they cease to be backward, and not indefinitely. It further said that, "Society does not remain static. The industrialization and the urbanization which necessarily followed in its wake, the advance on political, social and economic fronts made particularly after the commencement of the Constitution, the social reform movements of the last several decades, the spread of education and the advantages of the special provisions including reservations secured so far, have all undoubtedly seen at least some individuals and families in the backward classes, however small in number, gaining sufficient means to develop their capacities to compete with others in every field. That is an undeniable fact. Legally, therefore, they are not entitled to be any longer called as part of the backward classes whatever their original birthmark. It can further hardly be argued that once a backward class, always a backward class. That would defeat the very purpose of the special provisions made in the Constitution for the advancement of the backward classes, and for enabling them to come to the level of and to compete with the forward classes, as equal citizens."

In a historical Judgement delivered on 16^th November 1990 the Supreme Court made some interesting observations on creamy layer. It signifies imposition of an income limit, for the purpose of excluding persons whose income is above a specified limit. Petitioners in the case submitted that some members of the designated backward classes are highly advanced socially as well as economically and educationally and hence to be treated as forward. However respondents strongly opposed and argued that 'creamy layer' is but a mere ruse, a trick, to deprive the backward classes of the benefit of reservations. They also argued that few of the seats and posts reserved for backward classes are snatched away by the more fortunate among them is not to say that reservation is not necessary. Responding to theses arguments the Judges observed that the very concept of a class denotes a number of persons having certain common traits which distinguish them from the others. If the connecting link is the social backwardness, it should broadly be the same in a given class. If some of the members are far too advanced socially, economically and also educationally the connecting thread between them and the remaining class snaps. They would be misfits in the class.

Illustrating the point the Judges observed that there are several practical difficulties too in imposing an income ceiling. The line to be drawn must be a realistic one. Another question would be, should such a line be uniform for the entire country or a given State or should it differ from rural to urban areas and so on. Further, income from agriculture may be difficult to assess and, therefore, in the case of agriculturists, the line may have to be drawn with reference to the extent of holding. The income limit must be such as to mean and signify social advancement. At the same time, it must be recognised that there are certain positions, the occupants of which can be treated as socially advanced without any further enquiry. For example, if a member of a designated backward class becomes a member of IAS or IPS or any other All India Service, his status in society rises and hence he is no longer socially disadvantaged. His children get full opportunity to realise their potential. They are in no way handicapped in the race of life. His salary is also such that he is above want. It is but logical that in such a situation, his children are not given the benefit of reservation. For by giving them the benefit of reservation, other disadvantaged members of that backward class may be deprived of that benefit.

Keeping in mind all these considerations, the Court directed the Government of India to specify the basis of exclusion - whether on the basis of income, extent of holding or otherwise - of 'creamy layer' as early as possible. On such specification persons falling within the net of exclusionary rule shall cease to be the members of the Other Backward Classes. Government of India in obedience to this issued instructions in September 1993.

27% of the vacancies in civil posts and services under the Government of India, to be filled through direct recruitment, shall be reserved for the Other Backward Classes.  Candidates belonging to OBCs recruited on the basis of merit in an open competition on the same standards prescribed for the general candidates shall not be adjusted against the reservation quota of 27%. The rule of exclusion will not apply to persons working as artisans or engaged in hereditary occupations, callings.  The OBCs for the purpose of the aforesaid reservation would comprise, in the first phase, the castes and communities which are common to both the lists in the report of the Mandal Commission and the State Governments’ Lists.  The aforesaid reservation shall take immediate effect. 

Consequently instructions were issued saying that, while applying the Income/Wealth Test to determine creamy layer status of any candidate income from the salaries and income from the agricultural land shall not be taken into account. Subsequently Government of India have revised annual income criteria to exclude socially advanced persons /sections (Creamy layer) from the purview of reservation for Other Backward Classes from Rs.1.00 Lakh in 1993 to Rs.6.00 lakhs in May 2013 from time to time.

Government in the erstwhile Andhra Pradesh, have issued orders on 4^th April 2006, to adopt all the criteria to determine the Creamy Layer among the Backward Classes, as fixed by the Government of India, except the annual income limit, which was fixed by the Government of India at Rs.2.5 Lakh per annum and by erstwhile Government of A.P. as Rs.4.00 Lakh per annum with effect from 4^th April 2006 and enhanced the income criteria by raising the income limit from Rs.4.50 Lakh to Rs.6.00 Lakh per annum on 9^th December 2013.

The process has thus begun with Supreme Court direction followed by Government of India orders and adopted by both erstwhile AP Government and the present Telangana State Government. Then why few people make it a controversy? End

Chief Minister in China-Successful ten day visit:Vanam Jwala Narasimha Rao

Chief Minister in China-Successful ten day visit

Vanam Jwala Narasimha Rao

All-round development in the Telangana State in general and on the industrial front in particular has attracted many individuals and organizations within the country and abroad. On several occasions invitations have been pouring in from several international organizations requesting Chief Minister Sri K. Chandrashekhar Rao to visit their country. One such was from the Switzerland based “World Economic Forum (WEF)”, which is committed to improving the state of the world. In a letter addressed to CM, the Managing Director and Member of the Managing Board Phillip Rosler in the last week of July 2015 extended an invitation to him to the World Economic Forum’s Annual Meeting of the New Champions 2015, to be held in Dalian, People’s Republic of China, on 9-11 September in close collaboration with Chinese Government.

In his invitation the MD mentioned that, given the unique challenging task of administering inclusive growth in India’s most newly formed state (Telangana), the Chief Minister’s views will add great value to the conversations on infrastructure development, urbanization and innovation led development. The CM was also requested to bring a business delegation of non-forum member companies to actively participate in the deliberations.

In the invitation letter it is further mentioned that, as the foremost global meeting on innovation, science and technology, the proposed annual meeting of the new champions convenes the next generation of fast growing enterprises shaping the future of business and society and leaders from major multinationals, government, media, academia and civil society. It was further mentioned that the World Economic Forum that is now officially recognized as an International Institution for public private cooperation, feels that the Chief Minister’s and his team’s contributions to the high level discussions during the leading annual meeting are highly anticipated as they will help advance understanding around how technology and innovation will shape inclusive, sustainable and economic value. Since its inception in 1971, the World Economic Forum has become the world’s foremost multi stakeholder organization and has been a driver for reconciliation efforts in different parts of the world, as well as the catalyst of numerous public-private partnerships and international initiatives. The Annual Meeting of the New Champions brings together more than 1,500 participants from 90 countries to share strategies and solutions and discuss global issues and risks. CM accepted the request and agreed to participate along with a business delegation.

Accordingly Chief Minister and his 16-member delegation team left on 7^th September 2015 for China and Hong Kong on a 10-day tour that has been mainly organised to take him to the annual new champions meeting of WEF at Dalian in China on September 9. A tight schedule has been drawn for the CM to participate besides in the WEF meet, in many other programs ranging from industrial interactions to industrial promotion visits to places like industrial parks, bilateral meetings and visits to places of tourist attractions as well as participating in business seminars. These are to be in Dalian, Shanghai, Beijing, Shenzhen and Hong Kong.

On knowing that Chief Minister KCR is leading a delegation to China to participate in the WEF meeting and also scheduled Telangana Investment Promotion visits to other major cities in China, requests have come from China based organizations to include their place also in his schedule. One such is the request from Mr. Jiande YE, President of China Council of Promotion of International Trade (CCPIT) Shenzhen Council. In his letter addressed to CM he said that Shenzhen based companies are increasingly keen to invest in foreign markets and are looking for opportunities abroad including in India. The President requested CM and his delegation accompanying him to visit Shenzhen on 14^th September 2015 for exchanging ideas on mutually beneficial cooperation in trade and investment. The Chief Minister agreed to the request and has scheduled the visit.

On 8^th September the second day of his arrival, Mr. Leo Wang, Chairman of Leo group of companies met the CM and expressed his company’s willingness to invest in Telangana in manufacture of heavy duty pumps. Investment of around Rs. 1000 crores is the possibility as a result of the meeting. CEOs of top 40 companies located in Liaoning State had a long meeting with CM and his delegation and exchanged views. Interaction meeting was organized by CCPIT Daliyan. They had discussions on possibility of investments in Telangana. Indian Ambassador to China Mr. Ashok k Kantha and his team of officials from Indian embassy have briefed the CM on the China country situation and prospects and potential of Chinese companies to make investments in India, especially in Telangana.

On 9^th September, the third day of his stay in Dalian, Chief Minister had a meeting with Professor Klaus Schwab, the Founder and Executive Chairman of World Economic Forum (WEF) in the morning at the Annual Meeting of the New Champions. It was the foremost global business gathering in Asia, which is known as the “Summer Davos.” They both had discussions for about 30 minutes. Among others, CM had requested Klaus Schwab to host WEF annual conference in Hyderabad for which there was a positive response from him. CM briefed him on various economic and social aspects of Telangana state, including significance of Hyderabad City in India.

Chief Minister and Schwab exchanged ideas about promoting economic development. CM explained the Single Window Industrial Policy of Telangana, the best of its kind in the world and how the new policy has brought in approximately Rs. 12,000 Crore investments from 56 industrial companies in less than 3 months. He explained the innovative feature that gives investors the right to obtain timely clearance and puts the onus on government officials to clear large projects in less than 15 days. Schwab praised Telangana as a state renowned for social and economic innovations. He said, “I enjoyed meeting the Chief Minister of a state renowned for social and economic innovations in India.  We look forward to his participation at our Annual Meeting of New Champions in China.” Responding to Schwab CM said that “It was wonderful to meet Klaus Schwab and learn about the tremendous impact that the World Economic Forum has had. I am impressed by him and his team.”

The Chief Minister also met Ms. Hilde Schwab, the Chairperson of the Schwab Foundation for Social Entrepreneurship founded in 1998 to promote entrepreneurial solutions and social commitment with a clear impact at the grassroots level. Each year, the Foundation selects a Social Entrepreneur of the Year in India. CM thanked Schwab for her work in promoting social enterprise and he noted that three of the Indian social entrepreneurs of the year were from Telangana and that Hyderabad had become a social enterprise with a variety of organizations and a host of social impact funds.

During the WEF morning session on urban development challenges, Chief Minister has lucidly explained his vision on Hyderabad development. He shared his ideas and experiences with Mayors and vice mayors of very important Chinese cities like Guangzhou, Yuwi etc. CM has requested to help Telangana in sharing their experience and expertise on city developments. In the evening session Chief Minister participated in a discussion on “Emerging Markets at Cross Roads” at the WEF Meeting. The CM in his brief observation on the subject said:

 “In India states have a major role to play. Realizing this aspect the Government of India has devolved more powers and funds to the states. In place of the earlier Planning Commission an organization called NITI Ayog consisting of all the Chief Ministers of all the states with Prime Minister as its Chairman has come into existence. We call this as Team India. With Prime Minister as Chairman and CMs as members, we all together plan the development of country as a whole and also the states’ development as well. In a federal structure like the one India follows, states have a major role to play. For instance our state Telangana the newest and youngest 29^th state of India has laid down an excellent industrial Policy. We made it a law in the state legislature. We have made it as a right to the investor to get the clearances within the stipulated time of two weeks. We have already given clearances to 56 companies in the recent past to the tune of close to 2 billion US dollars investment. This speaks the mind set of India today to the whole world. I can certainly say that the market of India is a huge consuming market and exporting market as well. So we are stable and definitely we will continue to grow. We have a Prime Minister who is on the path of reform. He is very firm. He was quite successful as Chief Minister of Gujarat state”.

“Ups and downs are normally seen and normally observed. What I believe is that the way china pursued is to be seen as a best example. 30 years ago it was a different China. Today the world sees a highly grown up developed China. One should learn from China. What not to be learnt from china? We can learn everything from China. We strongly believe that we will grow and the trend is in our favour. We are the biggest oil importer and oil prices have come down now. We are happy for that and we will certainly make use of the situation and continue to grow further. This is our advantage”.

“May be economies of other countries are at the cross roads. I can certainly say that definitely India is not at cross roads. The Government is on the path of reforms. We are moving with greater speed. India is saving lot of money on oil import. With that we have a lot of scope to create more infrastructures for the poor people and India is marching towards inclusive growth. We give utmost priority for the inclusive growth of the society and country and we believe in that. Structural changes will take place when poor remain poor and rich become richer. That will be a cursing point which is undesirable. We should maintain equilibrium taking care of the poor and maintaining the dignity of poor”.

“In my state, though it is a new state, I have started a two bedroom house scheme for the vulnerable and disadvantaged community. We are spending lot of money on providing drinking water and creating infrastructure in the city of Hyderabad and laid down very good industrial policy. I appeal to the world business community that India is a fairly good place for investment. I welcome all business worlds to come to India in general and particularly to Hyderabad and Telangana where we have a huge land bank to allot for industries. The industrial policy like ours is no where in the world. There are single window policies in the world, but the single window of Telangana, I can certainly say, is without grills. The officers who delay in delivering the required permissions and allocations will be penalised. We made it a right to the investor to get the required permissions, required allocations and required clearances within the stipulated time other wise it can be deemed to have been given and the business house can go ahead. I welcome the business world to come to India, invest in India and invest in Telangana and let us go together”.

The way CM defended Indian Economy and its policies, the way he certified China’s development and confirmed its potential in coming out of its financial setback, the way he projected Telangana reiterates that KCR is a global person with vision and foresight. His observations in the WEF meeting signalled the world in general and India in particular that KCR is not only a regional party leader who championed statehood movement but also a progressive visionary and statesman with a foresight of inclusive growth.

On 10^th September his fourth day stay Chief Minister had a 40 minutes meeting with Mr. KV Kamath, President and Mr. Xian Zhu Vice President of New Development Bank Shanghai. The Bank of Shanghai is a very new bank in the process of formulating funding policies. They focus on infrastructure development in developing countries. It was a very interesting meeting. CM sought their help in funding Urban development projects, including waste to energy, irrigation etc. They positively responded.

The Chairman mentioned that KCR is the First chief minister to have visited and interacted with NDB since its operationalisation two months ago. The Chairman clarified that focus of NDB is on Lending to developing countries and the Focus will be on setting up infrastructure. He further clarified that NDB, unlike other multilateral agencies will listen to borrowers and will design its lending portfolio and its terms and conditions accordingly. NDB typically provides lending for a period of 15-20 years. CM initiating the discussion informed various infrastructure and welfare schemes Telangana has, initiated since its formation. He informed that the State has planned to revive, as its first green initiative, all its irrigation tanks numbering 46,400 in a span of five years and as part of this, about 6500 tanks have already been taken up in first year. The total estimated expenses will be about Rs 25000 Crores said CM.

CM further informed that the situation of power deficit, which the State inherited, was not only solved within 6 months but a detailed action plan has been put in place to generate an additional 20000 MW and that financial closure to the tune of Rs 40000 Crores has already been achieved through REC & PFC. Chairman NDB wanted to know more details of the financial closure and CM said that CMD GENCO will make a detailed presentation to NDB shortly. 

CM informed that the state has also initiated “Safe drinking water to all” mission and to this affect, a loan of Rs. 15000 Crores from HUDCO has already been tied up.  Further, the State has initiated major actions in the areas of Education, Health and other Welfare Activities and has been a pioneer in most of these schemes.

CM informed that there is an urgent need for Urban renewal and infrastructure for 5 major cities including Hyderabad. While a number of roads based infrastructure projects are already tied up with an outlay of about Rs 21000 Crores further assistance is needed for “waste to energy” proposal in Hyderabad and projects relating to roads, sewerage and drinking water in other 4 Corporations. NDB welcomed these proposals and suggested that DPRs of these projects may be submitted to take them forward. CM further mentioned that Warangal is being planned to be the Textile centre of the country and State plans to set up a fully integrated, state of the art textile park. DPR shall be submitted to NDB shortly. 

Earlier in the morning CM and delegation accompanying him reached Shanghai from Dalian after attending WEF meeting. Shanghai, on China’s central coast, is the country's biggest city and a global financial hub. Its heart is the Bund, a famed waterfront walkway lined with colonial-era buildings. The CM and delegation traveled by Maglev High Speed Train which moves with 300 KM per hour, from Airport to city.

Later in the evening Chief Minister addressed a meeting organized by CII and Government of Telangana to explain the investment opportunities in the state in which more than 65 Chinese entrepreneurs and companies participated. It was a huge success. The CM explained the details of single window industrial policy, the availability of land bank, hassle free permissions and approvals, zero corruption etc. He mentioned about chasing cell in CMO to take care of processing applications of investors and within a stipulated time of 15 days required permissions and approvals would be given. CM invited them to invest in Telangana. Many industrialists evinced keen interest and expressed their desire to invest in Telangana. Earlier in the presence of CM, MoU was signed between Celkon and Makeno for investment of 20 million US Dollars in Hyderabad to set up LED TV unit.

Two more Chinese companies in cell phone components and headphones have come forward to invest in Hyderabad. Shanghai Electric Corporation Vice President Mr. Shao having a 40 Billion Dollar company met CM. They have expressed their interest in setting up manufacturing and supply units of high powered pumps and electrical equipment in Hyderabad. CM extended an invitation to them and requested their team to visit Telangana.

Before leaving Shanghai for Beijing, delegation members in the team of Chief Minister visited Suzhou Industrial Park Located in Suzhou, a city known as "the paradise on earth". Suzhou Industrial Park (SIP) is an important economic cooperation project between Chinese and Singapore government and covers a total jurisdiction area of 288 sq km, among which 80 sq km area belongs to China-Singapore Cooperative Zone. It is a pilot zone of reform and opening-up and a successful model of international cooperation. It is one of China's fastest-growing development zones with the most international competitive edges. It has been ranking the first for years among China's development zones in using foreign capital.

As China's modernization drive gained momentum in the late 1980s, many Chinese delegations visited Singapore to learn modern management methods, while Singapore was also planning Economic Regionalization focusing on overseas investment. Both governments decided to join hands in developing a modern industrial park in the east of Suzhou. The China–Singapore Suzhou Industrial Park (CS-SIP) was thus born on February 26, 1994 when Chinese Vice-Premier Li Lanqing and Singapore Senior Minister Lee Kuan Yew signed the Agreement on the Joint Development of CS-SIP. The China-Singapore Joint Steering Council led by Chinese Vice-Premier Wu Yi and Singapore Deputy Prime Minister Wong Kan Seng will hold meeting every year to give directions for the development of SIP.

The delegation members had an interaction with Mr. Yu Cai Zen, member of China–Singapore Suzhou Industrial Park Committee. Mr. Yu briefed about the origin and development of the park and said that there are about seven Lakhs of employees working in the park. Ministers Sri Jupalli Krishna Rao and Sri Jagadish Reddy and other members of the delegation appreciated the development there. They shared with Park Committee members details of Telangana State Industrial Policy. They also requested Mr. Yu and his team to extend their cooperation in developing such industrial parks in Telangana.

On day five the 11^th September Chief Minister along with the delegation accompanying him participated in the dinner, hosted by Indian Ambassador in Beijing Mr. Ashok K Kantha in the evening. On arrival for the dinner CM signed in the Guests’ register at Ambassador’s house. The Ambassador told CM that several industrialists and Chinese companies are showing interest to invest in Telangana State after CM’s address in the World Economic Forum in Dalian.

Earlier he reached China capital from Shanghai after staying two days there. While in Shanghai, CM had an interaction with Mr. Yogesh Wagh, Director of Anju Infrastructure, a China based leading company. The CM explained in detail the Telangana State Industrial Policy to Mr. Yogesh who evinced keen interest and expressed his preparedness to invest in Telangana State. CM invited him to visit Telangana for which he responded positively.

            On day six the 12^th September Chief Minister had a series of bilateral meetings at the Raffles Beijing Hotel in Beijing with leading Chinese Industrial Companies and prospective investors. They include Chongqing International Construction Corporation, Inspur Group of Companies, China Fortune Land Development Company, China Railway Corporation and SANY Group. The Chief Minister briefed the representatives of these companies in detail about the facilities available in Telangana for them to invest in their respective fields of operation. In return they have shown keen interest in the state and expressed their willingness to visit the Telangana State as early as possible for further discussions.

The Chongqing International Construction Corporation (CICO) has been represented by Mr. Du Xian Zhang Vice-President and General Manager. Other members who participated in the meeting are DGM Mr. He Yujun, Executives Ms. Han Yinlu, Mr. Gou Xueyuan and Vice-GM Mr. Wen Yan. CICO was established in 1985 with a capital of 120 Million US Dollars. CICO is an infrastructure company in construction, project consulting, architectural design, mechanical and electrical installation, materials production, EPC projects etc. It has two projects in India namely Medical Institute in Bihar and Light Railway Project in New Delhi. It has branches in several countries including Sudan, Tanzania, and UK. It encourages PPP mode in infrastructure construction in road building and power station in India. It plans to cooperate with Indian Company for engineering contracting project. Discussions between CM and CICO rotated round their participation in Telangana State.

Chief Minister along with delegation had a meeting with representatives of Inspur Group led by its Vice-President Mr. Zhang Dong who is also President and CEO of Inspur India. The other members of the group are: Mr. Terrence Du, Head of Key Accounts and Inspur India, Mr. Snighk Soog, Head of Government affair Inspur India. Inspur group intends to invest in India in the field of electronics and Hardware. It began its operations in January 2015 in India with opening its branch office in Gurgaon. Inspur Group is one of the leading companies in the field of total solution and service provider of cloud computing in China. The server sales volume ranks number 5 in the world and number 1 in China. It provides IT products and services for 50 countries and regions in the world. They have shown interest to start its operations in Telangana also.

Chief Minister and his team had yet another bilateral meeting the same day in the afternoon with representatives of (CFLDC) China Fortune Land Development Company. CFLDC is lead by its Vice-President Mr. Liang Wentao and consisted of Director Planning Mr. Zhang Qitan, Assistant to President Ms. An Jing and Indian Consultant Mr. Sonny Badiga. CFLDC is interested to develop new industrial city in India. They shared their experiences with each other and explored the possibilities of CFLDC investing in Telangana State.

China Fortune Land Development provides investment, development, and operation services for industrial cities in China. It is a leading developer of new industrial city, industrial zone, theme zone, headquarters of industrial zone and standard workshop area. Its industrial cities comprise scientific and technological cities, and industrial complexes. The company was founded in 1998 and is based in Beijing, China. CFLDC asset size exceeds 16.7 billion USD and the overall sale in the first quarter of 2015 was over 5 lakhs USD. The registered capital reached 440 million USD. At the end of 2014 its total investment is more than 20 billion USD. It has an employee strength of around 12, 000. Some projects developed by it in China include, Guan Development Area, Dachang Chaobai river development area, Jiashan HSR new city, Shen Shu Eco Technological innovation city and China Fortune Innovation Park. The meeting concentrated basically on CFLDC participation in developing such industrial cities in Telangana.

Chief Minister’s another meeting was with representatives of China Railway Corporation. China Railway Corporation (CRC) is the national railway operator in China and manages all commuter rail and freight transport. With 5,700 train stations, they support the largest population in the world. Another meeting was with SANY group. It is a global company in the construction machinery industry with a vast product range of concrete machinery, excavator, hoisting machinery, pile driving machinery, road construction machinery, port machinery, and wind turbine. SANY became the unique company listed among the world’s top 500 companies in China’s construction machinery industry.

Chief Minister visited the Forbidden City in Beijing in the afternoon accompanied by the delegation visiting China with him. The Forbidden City was the Chinese imperial palace from the Ming dynasty to the end of the Qing dynasty. It is located in the centre of Beijing and now houses the Palace Museum. It served as the home of emperors and their households as well as the ceremonial and political centre of Chinese government for almost 500 years. Built in 1406 to 1420, the complex consists of 980 buildings and covers 180 acres. The palace complex exemplifies traditional Chinese palatial architecture, and has influenced cultural and architectural developments in East Asia and elsewhere. The Forbidden City was declared a World Heritage Site in 1987 and is listed by UNESCO as the largest collection of preserved ancient wooden structures in the world. CM enquired about the city and about facilities available for the visitors there.

Chief Minister on day seven, the 13^th September reached Shenzhen in the evening along with the delegation. Before leaving for Shenzhen, CM along with the delegation members visited places of interest in Beijing. Beijing, China’s massive capital has history stretching back three thousand years. Yet, it is known as much for its modern architecture as its ancient sites. The city among others has the massive Tiananmen Square, the Great Wall of China and many more interesting places to see.

CM with his team first visited the Tiananmen which is a large city square named after the Tiananmen gate separating it from the Forbidden City. The square contains the monuments to the heroes of the revolution, the great hall of people, the National Museum of China, and the Chairman Mao Zedong Memorial Hall. Tiananmen Square is within the top five largest city squares in the world. It has great cultural significance as it was the site of several important events in Chinese history.

The next visit was to the Great Wall of China. It is a series of fortifications made of stone, brick, tamped earth, wood, and other materials, generally built along an east-to-west line across the historical northern borders of China to protect the Chinese states and empires against the raids and invasions. It is the largest man-made monument ever to have been built. The Great Wall has on and off been rebuilt, maintained, and enhanced. The majority of the existing wall is from the Ming Dynasty. Other purposes of the Great Wall have included border controls, allowing the imposition of duties on goods transported along the Silk Road, regulation or encouragement of trade and the control of immigration and emigration.

CM and his delegation team spent couple of hours to go round the two places. CM evinced keen interest to know details about these two places, their historical and modern importance and also elicited information about the tourist and other importance of these places.

On day eight the 14^th September Chief Minister along with the delegation members accompanying him had an exposure visit to Shenzhen High-Tech Industrial Park (SHIP) in Shenzhen. Earlier CM had been to China Council for Promotion of International Trade (CCPIT) and had a meeting with their representatives. Both the groups exchanged ideas on international trade. CM briefed them about the Telangana State Industrial Policy and about opportunities to invest in Telangana. The (CCPIT) is a trade body of the Chinese Government founded in 1952. The CCPIT develops business cooperation and exchanges with foreign countries. It produces economic data, and is involved with diplomacy and with trade arbitration issues.

In the SHIP CM and his team of delegates first visited the premises of ZTE Corporation (Mobile Device Future Concepts) which is a prominent electronic hardware manufacturing company in the park.  ZTE Corporation is a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen. ZTE operates in three business units - Carrier Networks, Terminals and Telecommunication. ZTE's core products are wireless, exchange, access, optical transmission, and data telecommunications gear, mobile phones and telecommunications software. ZTE is one of the top five largest Smartphone manufacturers in its home market and in the top ten, worldwide. CM and representatives of ZTE had discussions on the possibility of establishing similar units in Telangana.

CM had lot of appreciation for the SHIP founded in September 1996 and has been listed among China's five state-level high-tech parks. SHIP covers a total area of 11.5 square kilometres in Nanshan District. Supported by the municipal government, the industrial park provides integrated services to enterprises, researchers and investors. It has been selected by national authorities as the country's Export Base of High-tech Products, APEC (Asia-Pacific Economic Cooperation) High-tech Industrial Park, Advanced State-level High-tech Industry Area and National Software Industry Base.

Authorities concerned briefed the delegation that the park has attracted many global high-tech giants and internationally famous enterprises including IBM, Philips, Compaq, Olympus, Epson, Lucent, Harris and Thomson, as well as the leading domestic players including Huawei, ZTE, Lenovo, TCL, Skyworth, Great wall and Powerise. In the Park, there have been a group of national grade scientific research institutions which are leading and have formed a development team consisting of a big group of talents with doctor’s degree and master’s degree. The management of the park currently focuses on promoting the development of key industries including computer, telecommunication, networking, integrated circuit, optical electronics, biological engineering and new materials.

CM and the members of delegation while going round the park had interaction with persons associated with various enterprises in the park and enquired about their functioning. CM also explained them about the opportunities in Telangana for investors.

After staying for a day in Shenzhen and after visiting the SHIP CM and delegation members left for Hong Kong. In Hong Kong CM schedule included industry interactions besides visiting couple of places of interest. Hong Kong on the southern coast of China is known for its skyline and deep natural harbor. It has a highly developed public transportation network covering 90 per cent of the population, the highest in the world, and relies on mass transit by road or rail.

On day nine, the 15^th September, a day before leaving for Hyderabad, Chief Minister participated in a seminar on “Business Opportunities for Hong Kong Companies in the State of Telangana” at Renaissance Harbor View Hotel in Hong Kong in the forenoon. CM offering his remarks on the seminar proceedings explained about Telangana State Industrial Policy, the single window system, hazel free clearances and timely approvals. Mr. Prashant Agrawal Consul General of India in Hong Kong welcomed the participants. A five minute documentary on Telangana State was shown to the participants. Sri Arvindkumar Secretary Industries and Commerce, Government of Telangana made a presentation on business opportunities in the state of Telangana and its new industrial policy. There was a question answer and interaction session as part of seminar. Concluding remarks were given by Mr. Arunachalam, Chairman Indian Chamber of Commerce Hong Kong. After conclusion of seminar CM along with Consul General and all participants had lunch together.

After the seminar held in the forenoon, CM along with the delegation members and Consul General Hong Kong Mr. Prashant Agrawal visited the place of Big Buddha generally known as Tian Tan Buddha and had been to the Peak where the statue is situated. This is a large bronze statue completed in 1993, and located at Ngong Ping, Lantau Island. The statue symbolizes the harmonious relationship between man and nature, people and faith. It is a major centre of Buddhism in Hong Kong, and is also a popular tourist attraction. The statue is 112 feet tall, weighs over 250 metric tons and was constructed from 202 bronze pieces. In addition to the exterior components, there is a strong steel framework inside to support the heavy load. Visitors have to climb 268 steps to reach the Buddha. The Tian Tan Buddha was constructed beginning in 1990, and was finished on 29 December 1993, which the Chinese reckon as the day of the Buddha's enlightenment.

After meeting couple of business delegates as a follow-up of previous day’s seminar on “Business Opportunities”, CM and his delegation left Hong Kong in the afternoon of 16^th September 2015 and reached Hyderabad the same evening.

The delegation that accompanied CM for the WEF consisted of Sarvasri K. Keshava Rao MP, K. Swamy Goud Chairman Legislative Council, K. Madhusudhana Chary Speaker Legislative Assembly, Jupally Krishna Rao Minister for Industries and Commerce, Jagadish Reddy Minister for Power, S. Venugopala Chary Special Representative at Delhi, Koppula Eshwar Chief Whip, Guvvala Balaraj MLA, S. Narsinga Rao Principal Secretary to CM, Shanthi Kumari Additional Principal Secretary to CM, Arvind Kumar Secretary Industries and Commerce, Shivadar Reddy IG Intelligence, Mahesh Murlidhar Bhagwat IG Security, Rajashekhar Reddy Special Secretary to CM, E.V. Narasimha Reddy MD TSIIC, J. Santosh Kumar CMO and Subash Reddy CMO. 

Post Script:

Two weeks after CM participated in the WEF meeting, its Managing Director and Member of the Managing Board, Philipp Rosler in a letter to the Chief Minister, on behalf of the World Economic Forum, thanked him for his active participation and engagement in the 9th Annual Meeting of the New Champions in Dalian. He said that it was a great pleasure to meet CM and to learn about his vision for reshaping Telangana Industrial Landscape. He wrote that “as I am sure you could sense in your various sessions and interactions, the robust discussions and exchanges as well as the exceptional level of participation illustrate the importance that leaders place on enhancing value through innovations, advancing scientific research, and fostering greater innovation and entrepreneurship towards a more sustainable future”. Rosler further mentioned that the Forum will remain in close contact with CM’s office to ensure that his government can leverage future opportunities to collaborate with the World Economic Forum. He expressed the hope to meet the CM again soon.