‘‘Superpower
US among weakest economies, says TU leader
The United States of America
which champions the cause of free market regime is itself among
the weakest economies of the world and the economy badly needs
state’s support. Apart from being the most indebted country the
super power also faces problems like a high fiscal deficit, rising
unemployment and economic recession. In such a condition the US
government is forced to resort to subsidies and other similar
doles to support the economy. Whereas the same America has been
preaching against such practices in the name of free trade, said
the President of All India Insurance Employees Association E M
Sundaram.
The eminent
trade union leader was speaking at Ruikar Memorial Lecture series
organised at Ambedkar College.
He added that
the Federal Government has a high fiscal deficit of 4 per cent,
while the states’ deficit quantum is not released at all he
said.
The pension
funds in that country are going bust, and the fund managers are
turning to the government for support. Except India the country is
indebted to most of the south east Asian countries including China
and Japan, he said. “If countries like India and China wake up
to their potential, then the American economy can collapse in no
time,” said Sundaram,
Arguing against
the theory of economic liberalisation which allows a free play to
the market forces with gradual reduction of the state’s
intervention, he said if the US government is forced to intervene
in the economic process then why should it not happen in other
countries.
He said free
trade can never be fair for the people, and there is always a need
for the government to intervene for the masses’ benefit.
Even the
capitalists supported government intervention and resource
mobilisation in order to boost the economy. This is a part of
keynisian theory of economics. Now if the state control is
withdrawn in the name of free trade or reforms it will mean going
150 years back when the classical theory of economics professed by
Adam Smith was prevalent.
Whereas the
real economic reforms undertaken after the World War II had a
scope for state’s intervention, he said .
Lashing out at
the UPA Government, he said that the Prime Minister, Manmohan
Singh and his colleague P Chidambaram should keep in mind the
domestic scenario while framing the policies rather than working
on theories of growth borrowed from the West.
He doubted if
the government has enough ways and means to fulfill the promises
made in the common minimum programme (CMP). “Chidambaram
declared a zero resource budget, and while there is a lot to be
done under the CMP,” he said.
Sundaram also
lamented about lack of enough credit to the agriculturists. While
on one hand if the government wants to step up farm credit, the
capital adequacy norms based on Basle accord do not allow the
banks to lend the farmers. If
the government indeed wants to ensure better credit inflow to the
farmers, there should be a proper amendment in the rules, said the
expert.
Sundaram said
that Indian banks need not follow the Basel norms which are
nowhere in lines with the local conditions.
Eminent
economist Professor S Khandewale was also present in the meet.
Khandewale in his speech also criticised the free trade regime.
Others present included Malti Ruikar, Yugal Rayalu, and
others.
MOIL
bags National Safety Award
Manganese Ore
(India) Limited (MOIL), a ‘Miniratna’ public sector enterprise
and a premier mining organisation engaged in mining of manganese
ore, has bagged the prestigious National Safety Award for the year
2001 for its Gumgaon mine.
The trophy was
presented by Union Minister for Defence, Pranab Mukherjee, to
MOIL’s Chief (Mines) A K Biswas and Anantram Bhoyar who
represented Gumgaon mine’s workers. Union Minister for Labour
and Employment Shesh Ram Ola was also present at the function
which was organised at New Delhi recently.
Other present
included MOIL’s Chairman-cum-Managing Director P M Reddy,
Director (Production and Planning) S M Bothra, General Manager
(Safety and Training) C P N Pathak and Senior Deputy General
Manager (Mines) A K Nag along with MOIL Kamgar Sanghathan’s
President Ramkripal Khursel and General Secretary Ramavatar
Dewangan.
The Gumgaon
mine of MOIL has been has been adjudged as the best underground
mine having the lowest injury frequency rate.
This same mine
had won the award for the year 2000 too. These awards are given
after a careful scrutiny of mine safety records by the office of
the Director General of Mine Safety (DGMS).
Beef up rural power
infrastructure: CPM to Govt
Business
Bureau
The Communist
Party Marxist (CPM), is pressing the government to come up with a
rural electrification programme for rest of the country in lines
of one which is existing for north east and Jammu and Kashmir.
This was
informed by Basudev Acharya, the leader of CPM in the Parliament,
during an interview with The Hitavada. Acharya was in the city to
attend the national conference of All India Civil Accounts
Employees Association.
The proposal
has been cleared by the Power Ministry, however it awaits the
Ministry of Finance’s endorsement, he said.
Under the
proposed plan, the unelectrified villages would be provided power
through 90 per cent
of grant and 10 per cent loan, he added.
The demand was
raised recently, and is apart from the proposed agenda in the
common minimum programme, said Acharya.
CPM has also
opposed the draft power policy of the United Progressive Alliance
(UPA) Government on various counts, he said. The draft policy
which is a review of the Electricity Act 2003, has been sent to
various states for its consideration around a couple of months
ago. However, the CPM which is supporting the Congress-led UPA
Government has vehemently opposed some of the points in it, he
said.
The CPM is
against the unbundling of state electricity boards (SEBs) and
opening up of transmission and distribution functions for the
private sector, added Acharya.
Similarly the
CPM has also approached the Ministry of Finance against downsizing
of Income Tax Department and outsourcing of various jobs in this
department, he said. Acharya said he had earlier written a letter
to the Finance Minister P Chidambaram and the latter has assured
to look into the matter. A meeting will be held in this regard on
November 19, he said. He will also take up the issue of rural
electrification during the meet.
CPM has also
succeeded in preventing the government from coming up with an
ordinance amending the Patent Act 2001. The Minister of Commerce
Kamal Nath wanted to bring some changes in the act through an
ordinance so as to comply with the World Trade Organisation
(WTO) conditions by January 2005.
“However, our
party has asked him to have a bill passed
in the Parliament. The Minister was suggested to put up the
proposed bill before a select committee so that it can gather the
views of those concerned with new thr law,” said Acharya.
Later a special
session of three days should be held in the Parliament to discuss
the bill. The Marxists apprehend that the new law in its present
form would prove detrimental to the indigenous pharmaceutical
industrie’ interests, he said.
It is expected
that the bill will be tabled for discussion in the winter session,
mentioned Acharya.
He also
criticized the pension plan for unorganized sector introduced by
the previous government. “The plan introduced by the then
Labour Minister Sahib Singh Verma was a hoax. It had no
mention of how the pension scheme would be funded. The common
minimum programme has social security scheme for the unorganized
labourers in its agenda,” and will be implemented soon, he said.
‘FDI is OK
where it doesn’t hurt’
The Communist
Party Marxist (CPM) is not averse to foreign direct investment (FDI)
in those sectors which do not hamper the indigenous industry.
Replying a question on why CPM-ruled West Bengal itself is keen on
inviting foreign investment, he said that it is only in a few
sectors. The indigenous industries do not face any threat if there
is a hike in FDI these sectors which include— electronics or
other technology-related industries. However the party would
certainly oppose increasing the FDI cap in sectors like insurance,
aviation and telecommunication as it feels this would harm the
nation’s interest, he said.
MPCB
directs closure of Trimurthi Ispat
In a major
exercise, Maharashtra Pollution Control Board (MPCB) has issued
closure notice to M/s Trimurthi Ispat Private Limited, Kalmeshwar
for causing excessive air pollution in the area.
The notice,
issued on Tuesday, has directed Trimurthi Ispat to shut down its
operations immediately. The closure will remain in force till the
unit installs the required pollution control systems.
“We have also
submitted a copy of the closure notice to MSEB and MIDC and have
asked them to disconnect electricity and water supply,” the
Regional Officer of MPCB, V M Motghare said while talking to The
Hitavada. The notice has been served under various sections of Air
Act 1981 and Water Act 1974.
The MPCB action
follows several complaints made against Trimurthi Ispat.
Interestingly, most of the complainants were fellow industrialists
having their units around the polluting unit.
Trimurthi Ispat
is a sponge iron plant manufacturing iron and steel. The unit uses
coal, diesel and other inflammables for burning raw alloy in
furnace. Consumption of raw coal is around 40-50 tonnes per day.
Due to huge consumption of coal as well as inadequate pollution
control system, carbon dust emanating from chimney spreads over
nearby areas causing a major health problem to residents as well
neighbouring industrial units, it was alleged in the complaints.
According to
the complaints, people working in neighbouring units are suffering
from problem of asthma and other ailments. Some of the units near
Trimurthi Ispat are in the food and textiles sector. The carbon
dust emanating from Trimurthi Ispat spoilt the quality of their
products, causing them huge losses, it was alleged.
Among the units
which complained against this pollution are Navjivan Dall Mill,
Sultana Oil Industries Private Limited, Anant Extrusions Limited
and Laxmi Poly Product.
The
complainants said that the law has put several conditions for a
sponge iron unit. It should be set up on at least 10 acre land.
The unit should be at least 15 km away from residential area. The
unit should also create a huge open space for collecting carbon
dust particles, they said.
However,
Trimurthi Ispat is situated on an area of just 6,000 sq meters. It
is close to Kalmeshwar and villages like Seloo and Brahmi.
As there is no
open space, the carbon dust particles spread to these villages
posing a grave health hazard.
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