Economic Highlights

New Delhi, 3 July 2017

Niti Aayog Decisions

HALF-BAKED, NEED RETHINK

By Shivaji Sarkar

The State cannot abandon its duties and abdicate its responsibilities. The NITI Aayog (NY) has to realise this basic point. Unfortunately, it is suggesting steps that are not in the interest of the poor and apparently is favouring abdication of the onerous task of universalising standardising, diversifying, creating ethical norms and universalising education that public institutions are entrusted with.

It has gone to an extreme by suggesting merger, closure or corporatisation (privatisation) of 42 of the 114 autonomous bodies. The Centre is planning a review of 679 existing autonomous organisations spread across 68 Ministries. Most of these institutions were created between 1950s and early 70s. Together these organisations have annual budget of Rs 72,000 crore, employ over 15,000 and serves over lakh knowledge seekers every yearly.

It is not surprising as it comes soon after its recommendation to sell off fund-guzzling Air India, which has an accumulated loss of Rs 52,000 crore. But its recommendation to close down Burn Standard Company Limited (BSCL) that produces railway wagons and equipment in West Bengal and seeks to raise Rs 100 crore through sale of surplus but prime land in Jabalpur is beyond comprehension to turn it profitable.

The BSCL has just received Rs 50 crore orders for wagon production from Bangladesh and is likely to receive more. The move though may have been taken with honest intentions is to benefit some private sector Kolkata firms, which see Burn as a competitor. The BSCL closure recommendation was apparently given without giving much thought.

It is surprising that the officials responsible for merger of profit-making domestic carrier Indian Airlines with the international airlines Air India have gone scot free. They drove it to maladministration, surrender of profitable routes, acquiring of unnecessary unproven aircraft, selling of various other aircraft and led it to huge losses. It is strange that those who took those decisions have never even been questioned. Some of them are occupying prime offices post-retirement.

It is one of the biggest scams in the history of world airlines. In the present circumstances, the decision to hive it off appears prudent. It is a wonder why successive governments have not ordered a detailed probe to find out who benefited from “planned slow-poisoning” of the national carrier.

The NY’s decision not to sell it as one-entity and hive off its land, real estate in prime areas across the country and other assets from the main operations is sensible. It would save public property while the government would be freed from the huge debt and other burden. Some private entities including a large corporate that owned Air India before its nationalisation have also evinced interest.

But the autonomous bodies, mostly registered under the Societies Act, imparting education, training and other services to strengthen the democracy, should not be put on the same platform as Air India.

Since the 1991 liberalisation, profit has become aim of the government and government-run organisations. Profit is not a bad word. This nation, however, since ancient times, has never considered imparting of education and empowering the people with skills and ethics as profitable business. Education and imparting of knowledge, that vidya sums up, is not for sale, ancient wisdom tells. It is for daan (charity) – bestowing and there cannot be any price on it. Thus the decision of NY per se is faulty.

It must revisit the basic concept through which since 1950s so many institutions were built. Each of these has a motto and vision. Yes, there can be review. But it should be for making these organisations more effective, efficient, people-centric for improved functioning of the society. But thinking of closing it down because that suits the whims and fancies of some officials in the name of “cutting” expenses is imprudent. The organisations are contributing in myriad ways and providing affordable education.

The proposal to close down institutions or merging them with any other university or organisation or privatise would be a body blow to the ethos they are meant for. Who can forget the contribution of Film and Television Institute of India (FTII) in changing the scenario of film-making in India? The Indian Institute of Mass Communication (IIMC) has been singularly responsible in introducing and standardising media education in the country.

Yes, for the virtual misutilisation of over Rs 72 crore, the fund allocated to it by Planning Commission in 2010, for turning it into an international university through a parliamentary law, the institute today is not in a happy state. Those who misutlised the funds have never even been questioned. The NY needs to look into these issues. This is perhaps not an isolated incident. Other institutions may have similar tales.

Many are welcoming the decision for their merger with some universities because the institutes were not allowed to blossom, particularly during the last ten years. These despite their noble memorandum of associations were allowed to drift as interference in their functioning increased.

Different other organisations such as the Indian Council of Philosophical Research (ICPR) and Indian Council of Historical Research (ICHR), National Council for Promotion of Sindhi Language have contributed in their own way. Would merging these with JNU, Jamia Milia Islamia or any other organisation lead to any solution? Or would they be subjected to more rifts or disorder?

The targeted reduction of budgetary allocation would not happen but complications in their functioning might multiply. Of late, the Children’s Film Society of India is less functional. So is the Film’s Division. How would the merger of the former with the latter be helpful is difficult to comprehend. The NY suggestions should not be wavering. These must be pointed. The manner in which recommendations have been given, are open to many interpretations. This gives officials either more discretion or allows them to drift.

The NY has to look into each case singly in detail, seek suggestions from its staff, not the top man, who in many cases are novices, and then give specific suggestions. It also needs to be remembered that many of these are institutions with international standing. The NY should not be in a hurry.

Decisions cannot be taken on institutions with diverse aims in a wholesale manner. Each requires separate diagnosis and closure, merger or supposed corporatisation is never the solution. The path has to be found out for the maximum utilisation and excellence. Nothing can be done piecemeal and saving money alone cannot be the criterion. The NY has to uphold the concept of bestowing of vidya for the benevolence of society. –INFA

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