Tuesday, July 9, 2013

Comrade Jyothi Basu Birth Centenary Celebrations begin


CPIM on Monday launched the birth centenary celebrations of legendary Marxist leader and former West Bengal chief minister Jyoti Basu with floral tributes, meetings and processions .
 
With the demand for more power to states rising from many corners of the country now, CPI(M) general secretary Prakash Karat today recalled that it was Jyoti Basu who had first raised the demand for restructuring of Centre-state relations.

"We are now hearing about states demanding special status, but it was in the beginning of 1980s that Jyoti Basu first raised his voice for the restructuring of Centre-state relation," he told a programme to mark Basu's birth centenary.

Karat's views were shared by CPI(M) state secretary Biman Bose who felt that during the late 70s and 80s Basu's advocacy of more power to states had turned him into a focal point.

He lashed out at the state government for its dilly dallying in holding panchayat polls in the state.

He also hailed Basu's uncompromising fight against communalism.

"Jyoti Basu throughout his life had fought against communalism. During anti-Sikh riots in 1984 and riots in the wake of Babri Masjid demolition, communal harmony in West Bengal had remained in tact under Basu's leadership," he pointed out while paying tribute to him.


The state assembly, where Basu was a member for 49 years, paid him glowing tributes. His portrait was garlanded among others by former Lok Sabha speaker Somnath Chatterjee, assembly speaker Biman Banerjee, his predecessor HA Halim and leader of the opposition Surjya Kanta Mishra.

Chatterjee recalled Basu's deep respect for parliamentary democracy, saying he considered the legislature "as the temple of democracy".

"When Basu became a legislator, the CPI (the undivided Communist Party of India) did not have many members. But despite that, as an opposition leader, Basu showed how the floor of the assembly could be used in the people's interest, how the assembly procedures could be used to reach the voice of the people to the government and the ministry," he said.

"When I joined politics, he told me 'This is the best platform to serve the people'. These words still ring in my ears."

Chatterjee refered to Basu's fight for strengthening the federal structure of the Indian constitution and his campaign for more powers for the state.

In the morning, women, physically challenged people and children carrying Basu's portrait took part in a large rally from Indira Bhawan, where Basu, a founding member of the CPI-M, spent his last years in the satellite township of Salt Lake.

There were songs and slogans eulogising the leader, who holds the record for the longest continuous chief ministerial tenure in independent India - from 1977 till he voluntarily stepped down in 2000.

Holding aloft the red flag, the participants marched to Indira Bhawan where Chatterjee, Forward Bloc state secretary Ashok Ghosh and other leaders garlanded his portrait.

Monday, July 8, 2013

CITU Congratulates NLC Workers for Heroic Strike


THE Centre of Indian Trade Unions congratulated the workers as well as all the unions of Neyveli Lignite Corporation(NLC) in Tamilnadu for their all-in united indefinite strike action from July 4 against the decision of the government to disinvest shares of the public sector company.

The strike commenced on July 4 and around 27,000 workers including 13,000 contract workers are in complete strike with a firm determination to resist offloading of shares of NLC to private hands.

The CITU also congratulated all the trade unions and associations representing the employees and workers of NLC for the all-in unity they have built up in the course of anti-privatisation struggle.

The CITU condemned the move of the government and the NLC management to move to High Court to get the strike banned ignoring the sentiment and opinion not only of the workers and officers of NLC but the people of Tamilandu irrespective of political affiliations.

The heroic all-in united strike struggle of the NLC workers against privatisation and disinvestment would inspire the public sector workers and the working people in general in the struggle against anti-people economic policy and policy of privatisation. The CITU called upon the trade union movement and the working class in general to extend their support and solidarity to the heroic strike struggle by NLC workers.

Comrade Jyoti Basu : A legend in his Lifetime

A.K. Padmanabhan 
The 14th Conference of CITU called upon all CITU unions and committees to observe the Centenary of Comrade Jyoti Basu, one of its founders and a great leader of the Indian revolutionary movement, from 8th July 2013 to 8th July 2014.

Here we publish a brief write up on the life of Jyoti Basu, to be followed by more material on his life and teachings, during the Centenary Celebrations 

Comrade Jyoti Basu, one of the founders of CITU and one of the great and popular leaders of Indian political spectrum was born in Calcutta on 8th July 1914.  Both his parents hailed from the Dhaka district of the present day Bangladesh.  His mother belonged to an upper middle class, land owning family and father, from a “relatively lower middle class back ground, was a doctor and had been to the US for higher studies”.
As he himself has noted in his memoirs, “there was not even a whiff of politics in the family”.  But he also noted that though “politics was not the hot subject in our house hold, a certain sense of sympathy and respect for the revolutionaries of  those days were not missing though it was underplayed”.

Growing up in an atmosphere of increasing revolutionary movements, storming of the Chittagong armoury, Gandhiji’s hunger fast, Netaji Subhash Chandra Bose’s speeches in largely attended public meetings etc, he was attracted to political developments.

In his memoirs Jyoti Basu refers to the police beatings he and a cousin had to face at Netaji’s public meeting.  He says  “The entire area resembled a battle field.  There were mounted policemen, ordinary  constables and sergents in uniform.  When the sergents gave charge, we decided we would not run for safety, naturally, as we started walking away in the face of onslaught, a few canes fell on our backs.  But, we did not flee, we walked briskly to father’s chamber”.

Here we find a young boy of 16 years, with a mind full of support to the freedom movement daring the police beatings, which later on through his life developed into a leadership quality of facing all challenges squarely.

In London
In the year 1935, Jyoti Basu obtained his degree and then left for England for his studies in Law. The four year period of study in London moulded him into an activist of the India League, then under the leadership of V.K. Krishna Menon who later became a Cabinet Minister in Nehru’s Cabinet.  Later, an organization named London Majlis was formed and Jyoti Basu was its first Secretary.  This organization worked for generating support for the Indian freedom movement and also hosted receptions to visiting Nationalist leaders.  Through this he came into contact with leaders like Jawaharlal Nehru, Subhash Chandra Bose and others.  A group of Indian students including Jyoti Basu, attracted to the anti-imperialist movement and Marxian thought, were active at that time in London and had close contact with the Communist Party of Great Britain.

Immediately after his exams, without even waiting for the results to be declared, he returned to India in the early 1940s and established contacts with Communist Party of India.  Though he got enrolled as a barrister in Calcutta High Court, he started working actively as a whole timer of the Communist Party.

Trade Unions and Elections
In 1944 he started organizing the Bengal-Nagpur Railway Workers Union and was elected as its General Secretary.  Thus began his active involvement in trade union activities which continued till his last days.
It was during this period that Jyoti Basu entered the electoral field.  In the elections to the Legislative Assembly in 1946 he was nominated as the candidate of the Communist Party from the Railway Workers constituency.  His main opponent was Humayun Kabir, who was also the President of the Railway 
Employees Association and fully supported by Congress.

His long period of legislative work started with this election, which he could win despite various malpractices.  It is interesting to note what he had to say about the election experiences in 1946.
“My very first election as a candidate gave me a taste of what bourgeois elections were all about.  It was baptism by fire.  There was a conscious effort to buy votes.  At another level, I saw what honesty and idealism were all about.  Not one person of the electoral college (Railway workers eligible to vote)  had betrayed us, the dedication, perseverance and loyalty of our comrades ensured my victory and above all it was a victory of Railway Workers”. The lessons of the 1946 election and victory in that would have helped him in all the elections to the state legislature that he contested later!

Jyoti Basu continued to be a member of the West Bengal Legislature after independence.  After Bengal was partitioned, all members of the legislature, elected in 1946 from West Bengal area continued as members.  He notes in his memoirs, on the first day of the session after independence which was held in November 1947 – “It may be recalled that on the very first day of the session the state police used lathis and teargas to disperse a gathering of 25 thousand farmers and students organized by the Bengal Provincial Krishak Sabha”.  This was surely a taste of things to come in the later days.

Jyoti Basu, played a leading role in West Bengal and also at the national level in developing the democratic and left movement.  He was involved in building a powerful trade union movement in the state.  In between, the Communist Party was banned, leaders including Jyoti Basu were arrested.  Braving all the attacks, the movement grew in strength.  Jyoti Basu, won the elections in 1952 and again in 1957.  In 1957, he was the formal leader of the opposition in the state legislature.  He won again in 1962 from the same Baranagar constituency.

The period from 1962 to 1967 was of great importance in the history of India.  The Communist Party of India faced a split and the CPI(M) was formed.  Jyoti Basu was elected as a member of the nine member Polit Bureau of the Party and he continued to be in the highest body of the party till his death.

Pro-People Governments
1967 saw the defeat of the Congress in many states and Jyoti Basu was the architect of the new setup after the defeat of the Congress in West Bengal.  In a triangular contest, the Congress was defeated and the two fronts – one led by CPI(M) and another by Bangla Congress – came together to form a United Front Government with Ajoy Mukherji of Bangla Congress as Chief Minister and Jyoti Basu as Deputy CM.  Thus started the long history of coalition governments in Bengal.

This government lasted only eight months but created history by taking pro-people steps like nationalization of the Tram Company and repeal of draconian West Bengal Security Act which was used to suppress the people’s movement.  This Government declared that the police force will not take a partisan stand in favour of managements in labour disputes.

The next elections in 1969 saw the two fronts contesting together against Congress.  Jyoti Basu became Deputy Chief Minister again with Home and Police as his portfolios.  This Government laid the foundation for the land reforms in the State and took many pro-people decisions.  This Government lasted only 13 months.  President’s rule was promulgated on 29th March 1970.

This period was a turbulent one in the history of West Bengal.  The Naxalite movement began its murderous attacks against CPI(M) and its supporters and was also joined by Congressmen in this.  There was a planned murderous attack on Jyoti Basu who was shot at on the railway platform at Patna on 31st March 1970 and a comrade who came to receive him was killed. Jyoti Basu escaped with bruises on his hand.

CITU Formed
On the trade union front also, new developments were taking place. With massive struggles in various sectors and in different states, various questions were raised on the approach of the predominant leadership of AITUC at that time.  It was in such a situation that the decision to call an all India trade union conference to discuss about the formation of a new central trade union organization was taken.  Jyoti Basu was one of those who took the lead in this along with others like Coms. B.T. Ranadive, P.R Ramamurti.  In West Bengal, the West Bengal Provincial Trade Union Council fully supported this move.  Jyoti Basu was the Chairman of the Reception Committee for the conference in Calcutta.

In his welcome address to the Conference on 28th May 1970, he dealt in detail with the situation in West Bengal and achievements in the short period of the two United Front Governments. He also dealt with the tasks of the conference, underlining building up of unity of the working class for struggle, mobilization of allies to shoulder the historic responsibilities of the working class along with various other issues.

In the Foundation Conference Jyoti Basu was elected as a Working Committee member and in the Second Conference he was elected as Vice-President, in which position he guided CITU till his last days. Jyoti Basu gave leadership to the struggles of the working people in the turbulent days after 1970, and guidance  in building up the most powerful unit of CITU in the country in the state of West Bengal.
The struggles of the West Bengal people, the innumerable killings of leaders and cadres of CPI(M), CITU and other mass organizations in the period of 1970-77 are all part of history.  The working people of West Bengal withstood all these cruelties, fought for restoration of democracy and finally became victorious.

Left Front Governments
In 1977 the first Left Front Government was formed and Comrade Jyoti Basu was sworn in as Chief Minister. For 23 years he continued as Chief Minister, winning five consecutive elections. He then stepped down from the post and without contesting, spearheaded the battle in the next two elections.  A total of 34 years of Left Front Government is a record for any left government in a bourgeois system. Jyoti Basu created history as the longest serving Chief Minister in India.

The achievements of the Left Front governments of West Bengal, starting from restoration of democratic rights and release of all political detenues are also well known. Jyoti Basu had made a declaration that “this Government will not rule from Writers Building only” immediately after taking over in 1977.
The limitations of a state government were also made clear to the people of West Bengal.  In an interview he clarified about the experiment of the Left Front government:  “It is not a socialist economy and system operating here.  We have not made tall promises.  Whatever we can do, we have told them.  One thing we cannot do, that is, bring about fundamental changes.  Because, we are not a republic of West Bengal.  We are part of India”.

The 34 year Left Front Government  in West Bengal made an immense contribution to the building up of the left and democratic movement in the country and initiated innumerable pro-people programmes, especially for the workers, peasants and rural workers.

For the Cause of People
In the elections to the Lok Sabha, in 2009, the Left Front faced a setback.  At that time he said “It is the people who determine the course of history. There can be some who misunderstand us temporarily, but if we keep going to the people repeatedly and make ourselves worthy of their love, they will most certainly understand us.  We will have to again draw to our side those who opposed us in the last Panchayat and Lok Sabha elections”.

This is the immediate task Jyoti Basu had outlined to the leaders of the working class movement in West Bengal. The lofty ideals, for which he struggled all through his public life of more than seventy years are there for us to achieve.

Though Jyoti Basu left us forever on 17th January 2010, his life and teachings will surely guide us toward our goals.

Let us never forget what he said “There is nothing more valuable in life than the love of the people.  We are always ready to sacrifice our lives for a greater cause… There should not be any regrets in having led a life of disuse.  That has always been my bottom line.”
  
Long live the legacy of the great revolutionary Comrade Jyoti Basu!

CPI(M) Karnataka State Committee to build study-cum-research centre in Chickballapur


To mark the birth centenary of P. Sundarayya, first general secretary of the Communist Party of India (Marxist), the Karnataka State committee will build a national study-cum-research centre in Chickballapur district. Announcing this at the valedictory of Sundarayya’s birth centenary celebrations  on Sunday, State Secretary and former MLA G.V. Sriram Reddy said the proposed centre, expected to cost about Rs. 10 crore, would come up on five acres of land. 

The construction is expected to be completed in a year. Mr. Reddy later told that the centre would take up scientific studies as well as analysis of social issues, especially social inequalities. It would also undertake studies on economic issues such as impact of globalisation and flaws in economic policies, and analyse different dimensions of political issues. All these studies would have a national perspective, he said.

The centre would also train cadres, he said. It would have an open-air theatre and two auditoriums. State Secretariat members G.N. Nagaraj and V.J.K. Nair and Kannada writer Devanur Mahadeva spoke.
(courtesy : The Hindu)

CPIM Condemned Blasts in Bodhgaya

The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:

The Polit Bureau of the CPI(M) strongly condemns the bomb blasts in Bodhgaya, a venerated place of worship for millions of believers across the world.  It is fortunate  that no serious damage was done to the Mahabodhi temple and the Bodhi tree although it is a matter of serious concern that some monks suffered injuries.

No effort should be spared to identify and nab the culprits responsible for this heinous crime. It is also necessary to inquire how the criminals could have access to the area which was supposedly under security cover with police posted on the premises.  Once again the issue of better and sustained coordination between the Centre and State Governments comes to the forefront as does that of the capacity of intelligence agencies. On both fronts the government has to take urgent steps.

Saturday, July 6, 2013

Food Security Ordinance

The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:

The Polit Bureau of the CPI(M) expresses its strong disagreement with the central government over the insincere manner in which the food security legislation is being handled. The CPI(M) had wanted the central government to give utmost priority to this matter. However, the Union Government failed to bring in a proper legislation for nearly four years for the consideration of parliament, and now an ordinance is being promulgated. The ordinance route shows contempt for parliament and is anti-democratic.

The law promulgated by ordinance does not provide for a Universal Public Distribution System and there are other defects. The CPI(M) will raise these objections and push for amendments to the Bill when it comes up in parliament.

Monday, July 1, 2013

Left Parties convention and Declaration



Draft of the Declaration Placed at the National  Convention of Left Parties
At Mavalankar Hall, New Delhi
July 1, 2013


Sixty six years after independence, the aim of a developed and prosperous India with equal rights for all citizens seems a distant goal.  The current plight of the country is due to the nature of capitalist development which favours the rich and harms the poor.  The government’s policies are determined by the narrow interests of the big business, the rich and the powerful.  As a result, vast masses of the people  still live in poverty, victims of hunger and disease, with no education and health facilities and opportunities to earn a decent livelihood.  India accounts for one-third of the world’s extreme poor.  Dalits, adivasis, women and the minorities continue to be victims of social oppression.  Their social, economic and democratic rights remain severely curtailed.

The politics of the country is dominated by money power. Communal and divisive forces have a free run. More and more young people find no worthwhile employment and face a bleak future.  An independent foreign policy and defence of national sovereignty is  compromised.

Under the rule of the Congress-led UPA government, people suffer from ever increasing  price rise of essential commodities  especially food items; farmers are unable to earn a decent livelihood and there are widespread suicides by farmers; land is being increasingly seized by real estate speculators, mining companies and corporates.  According to the latest survey undertaken by the National Sample Survey Organisation, in the two years between January 2010 and January 2012,  the rate of unemployment rose by a shocking 10.2 per cent;  45 per cent of the children under five years of age are  malnourished;  only 16 per cent of children who enrolled in class-I  managed to reach class-XII; and medicines and health facilities are going beyond the reach of the common people.

While the people face these miserable conditions, the UPA government has allowed the loot of natural resources like  land, minerals, gas and spectrum by the corporates and big business.  The neo-liberal regime under the UPA government has spawned corruption on a large scale, with no sector being spared from corruption scandals. The UPA government has been generous in forgoing  taxes of the corporates and the rich to the tune of Rs. 5 lakh crore in the last budget.  The government has cut subsidies for petroleum products and fertilizers. For the rich there is a bonanza while for the poor there is austerity.

The priorities of the Congress-led government are to appease foreign finance capital at the expense of the people.  Foreign supermarket chains are being allowed in retail trade endangering the livelihood of a million shopkeepers and traders. 

There is a regression in social values with the invasion of market relations and treating women as sex objects.  Women are growingly subject to sexual attacks and violence and denying them an equal status in society.  Dalits continue to  face atrocities, denial of basic rights and exclusion from productive economic activities.  Adivasis  face an existential threat due to displacement from their land and habitats.  The socio-economic plight of the Muslim minorities was brought out in the Sachar Committee Report but nothing much has been done to redress the situation.  Innocent Muslim youth are often targeted in the name of fighting terrorism.

The Congress-led government has pursued a foreign policy which seeks to align India with the United States of America.  The latest example  being India’s acquiesance  with the rising US-NATO intervention in Syria and the steady reduction of oil supplies from Iran under US pressure. 

The policies pursued by the UPA government are inherently anti-people and anti-democratic.  The Congress and the UPA have to be opposed and defeated if alternative policies have to be put in place. 

The BJP represents a more regressive variant of the present regime.  The BJP stands for the communal Hindutva ideology which is married to unalloyed free market capitalism. Narendra Modi, the leader projected by the BJP for the next Lok Sabha elections, symbolizes this reactionary mixture.  The Gujarat model touted by Modi symbolizes this path – pogroms for Muslims and bonanza for the corporates.  The praise for Modi sung by the big corporates cannot conceal the plight of the rural poor and the adivasis and the poor human development record in Gujarat. 

The BJP which makes much of the corruption of the UPA government is itself tainted with the worst corruption scandals.  Its government in Karnataka became an extension of the mining mafia which looted thousands of crores by illegal mining. 

The RSS/BJP combine has also fanned tensions and communal violence in several towns in Uttar Pradesh in the last two years. It is waiting for the opportune moment to push the agenda of the Ram temple in Ayodhya and the scrapping of Article 370 of the Constitution with regard to Jammu & Kashmir. 

The BJP is no alternative to the Congress in terms of programme and policies. It has to be fought and isolated. It is the duty of all patriotic, secular and democratic forces to ensure that the BJP does not come back to power. 

The politics of the country is being increasingly dominated by money power and business lobbies. Huge amounts of money are being pumped into elections polluting the political system and distorting democracy.  This has to be halted. Electoral reforms to curb money power is an urgent necessity.  The basic reform required is the  introduction of a proportional representation with a partial list system. This will obviate the money and muscle power to a great extent. 

The country requires a more federal system.  The concentration of powers and resources in the hands of the Centre should be reduced.  The rights and powers of the states have to be enhanced and backward states should be given a special status  as far as devolution of resources are concerned.  This requires the restructuring of Centre-State relations. 

Both the Congress-led UPA and the BJP-led NDA have been beset with contradictions and have shrunk in size.  This has happened since both the major parties stand for policies and programmes which are not in the interests  of the people but represent the interest of a narrow strata.  What is required today is the rejection of the policies and the political platform of the Congress and the BJP. 

The country requires an alternative. Such an alternative can emerge only on the basis of alternative policies.  There has to be an alternative policy platform around which a political alternative can be built. 

Alternative economic policies, defence of secularism and social justice, strengthening federalism and an independent foreign policy are all important features of the alternative policy platform. 

The Left parties have set out such an alternative policy platform  in the economic, political and social spheres.  The main features of such an alternative platform are:

1)    Implementation of  land reform measures, distribution of  surplus land to the landless, ensuring house sites to each landless household. End to forcible land acquisition. Remunerative prices for farmers and cheap credit based on Swaminathan Commission Report.
2)    Stepping up public investment for infrastructure and setting up manufacturing  and other industries for more employment. Nationalisation of mining and oil resources.
3)    Plug loopholes in taxation measures and ensure collection of legitimate taxes; regulation of speculative financial flows into the country; stop the opening up of financial sector. No FDI in retail trade.
4)    Introduction of  universal public distribution system with 35 kgs of foodgrains at a maximum price of Rs. 2 a kg per month for all families.  Food Security law should be passed to ensure this. 
5)    Separation of religion and State as the basic principle of secularism to be embedded in the constitution; firm action to curb communal forces.
6)    Increasing allocations for education and health.  Stop privatization of education and health services.  Guarantee implementation of Right to Education Act.
7)    Firm measures to curb high level corruption; enact Lokpal legislation with independent powers of investigation. Electoral reforms.
8)    Equal rights for women in all spheres.  One-third reservation for women in Parliament and legislatures; protection of rights of dalits and extension of reservation for SC/STs in the private sector.  Implementation of Ranganath Mishra Commission on reservation for minorities. Protection of Fifth and Sixth Schedule rights for adivasis.
9)    Rights of the working classes - enforcement of fair minimum wage and social security measures.  End contractualisation and casualisation of labour.
10) Adopt an independent foreign policy.

The Left parties appeal to all democratic parties and mass organisations to support this alternative political platform. The Left parties will conduct a political campaign to mobilize support for this platform.  Let us go forward towards building a powerful political alternative.

Wednesday, June 26, 2013

Reduce the Sufferings of Kashmiri Masses: CPI(M)

In the backdrop of Prime Minister Dr. Manmohan Singh’s present visit to Jammu and Kashmir, J&K State Committee of  CPI(M) has expressed its dissatisfaction over the current scenario of the state. In a statement issued here today, the party unit alleged
that:
The disillusionment of people has steadily increased and the  expectations regarding improvement in the overall socio-economic  situation and progress of peace process have decreased. The hanging of Afzal Guru and some other unfortunate incidents have resulted in serious setback to the political process and reconciliation. In order to set things right and instill confidence, the political leaders, both at national and state level should introspect and take quick and adequate corrective measures. Till now, the valuable opportunities for peace and reconciliation in the state have not been fully availed. This has resulted in untold sufferings of the common masses. In order to reduce the sufferings of the people and usher an era of peace and prosperity in the region, the stalled Indo-Pak dialogue and the talks between Government of India and the various political sections of the state including the voices of dissent need to be given priority. The confidence building measures which had generated hope among the people on both sides of the LoC, like people to people contact and cross LOC trade need to be strengthened and followed with vigour and utmost seriousness. Relaxation in the regulations regarding travel papers,
replacement of barter system by the use of currency and banking facilities in cross LOC trade and provision of speedy communication facilities will make these CBMs meaningful and effective.

A shadow of fear still hovers certain sections of the younger generation as harsh and draconian laws like AFSPA and PSA continue to haunt them. This needs to be cleared and corrected. The cases of those languishing in jails outside the state should be taken on fast tract so that speedy justice is done. There should be an amount of tolerance towards the voices of protest and dissent. Violence in any form as a means of solution to our problems needs to be rejected out rightly. Apart from other aspirations of the youth, growing unemployment has resulted in frustration and alienation. This is proving harmful for peace and development in the state. Since there are no employment opportunities in private sector within the state, the Government of India should make result oriented efforts to get the educated and professionally trained youth of J&K absorbed in public and private sectors of the country.

The recommendations of different working groups and interlocutors aimed at providing relief to the people need to be reviewed and implemented. PM’s reconstruction programme regarding the return and rehabilitation of Kashmiri migrants deserves serious attention. Adequate relief to earth quake sufferers in the erstwhile Doda district must be ensured.

Corruption free good governance with accountability has been a long cherished dream of our people and could have proved an effective facilitator in seeking solutions to our current problems. Unfortunately this has not been achieved and we have miles to go for reaching this goal. In the same way, the institutionalization, decentralization and democratization of the administration continues to be a distant dream.

Tuesday, June 25, 2013

Left Parties on Move to Increase Prices of Natural Gas

Joint statement issued by the Left Parties in view of the move of the government to increase the prices of Natural Gas from the KG-D6 Basin.

1.     The government is going to increase the prices of natural gas, which is a major input for the production of fertilizers and power, in the country. The present price of natural gas in $4.2 per mmbtu. The government appointed Rangarajan Committee has suggested a price of $8.4 per mmbtu from April 2014. While the power and fertilizer ministries are opposed to the recommendations of the Rangarajan committee and are pitching for a lower price, the Petroleum Ministry, Finance Ministry and Planning Commission are insisting on a price even greater than the Rangarajan formula. Though the increase in prices would be applicable to all producers, both PSUs and private companies, the super high profits of private companies will be retained by them, whereas, government can mop up the increased revenues of PSUs (and in theory at least, be used to offset the increase in subsidy).

2.     Petroleum Ministry has agreed to the Rangarajan prices for three years and has recommended a price of $14 per mmbtu (open market prices) for the last two years. Finance ministry has recommended a price of $11 per mmbtu and Planning Commission has recommended a price of $9.2 per mmbtu (on average) for three years and $14 per mmbtu (open market prices) for the last two years.

3.     Considering a production of 50 mmscmd from KG-D6 block, even with the Rangarajan formula, the subsidy implications are gigantic on account of natural gas produced from KG-D6 block. It would imply an additional subsidy of Rs.90,000 crore in the five year period (2014-15 to 2018-19) over the current levels of fertilizer and power subsidy. With the Petroleum, Finance or Planning Commission formula the figure would increase further to Rs.1,38,000 crore, Rs.1,46,000 crore, Rs.1,48,000 crore respectively.

4.     With its stretched finances, the government will not able to meet these subsidy requirements and will perforce raise the prices of fertilizers  and power. Even with the Rangarajan formula the unit cost of power will rise by Rs. 2 per unit. If the recommendations of Petroleum, Finance, Planning Commission were accepted, this would imply an average increase by Rs.3, Rs.3.2, R.3 .3 per unit respectively.


5.     Similarly with fertilizers the increase in prices with the Rangarajan formula would be Rs.6000 per metric tonne. If the recommendations of Petroleum, Finance, Planning Commission were accepted, this would imply an increase Rs. 9200, Rs.9700, Rs.9900 per tonne respectively.

6.     In the backdrop of the slowdown in the economy and persistent inflation this magnitude of price increase would deal a death blow to the Indian economy and cause untold hardship to the people of the country and its farmers. We demand that any price increase should  be kept in abeyance and the government should come out with full facts and figures and have debate with all stakeholders before it pushes ahead with this move,

7.     It should also be noted that the entire price increase/enhanced subsidy will be passed on to just a single corporate house as super normal profits, since the profit share of the private operator is 90%. Natural gas belongs to the people of the country and the government is holding it in trust for the people. They cannot be plundered by the corporates and actively be supported by the very arms of the government that are supposed regulate them.

Monday, June 24, 2013

SFI's call for uttrakhand relief fund collection

A colossal tragedy has struck Uttarakhand in recent days, with hundreds of lives lost (the death toll is rising everyday) and whole villages, roads and communication links wiped out. Rescue and evacuation operations are still going on in the worst-affected regions of the state, and need to be continued on a war-footing. SFI demands that the Central Government extend every help needed to the State government in relief operations.

The State Government, apart from making full use of its own machinery to provide relief to those affected, must also strive to harness and channelise the collective energy of various organisations for the purpose. It must also investigate the role that the indiscriminate tunnelling of hills by power projects and the uncleared dumps of silt had to play in this calamity. As the unfolding disaster shows, the result of a development strategy feeding upon untrammelled deforestation and unchecked construction activities has turned out to be catastrophic.

The CEC of SFI extends its deep condolences to the families of those who have lost their lives, and stands in solidarity with the lakhs of people affected. It calls upon its units all over the country to collect funds and materials urgently for relief to the affected people.