How healthy is the health of Nagaland PSUs?

 How healthy is the health of Nagaland ?

 "No one will take Sugar Mill even free" - Late Khekiho, 1995

New Delhi 

"In his keen memory he stored

His silences like mistresses

And it isn't my intention

To disturb the symmetry of holes".

- 'Remarks of An Early Biographer'

The debates on economic issues, budget making and the road map to the future are the flavours of the season. Chief Minister Neiphiu Rio's Budget speech has made news and has been lauded. Maybe even the Budget speech writers among Babus did not expect such a response. But the appreciation is essentially driven by political motives. 

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We do not mind that, but discussions on certain vital economic issues and matters concerning industrialisation are also must.

There is no doubt that the economic growth and development of a modern but small state like Nagaland is inextricably linked to the small scale and medium sized industries. Private participation is must and on this the Modi government's initiatives on 'Make in India' and 'Act Local and Think Global' also could be scrutinised closely. BJP national vice president M Chuba Ao in his statement has referred to Atmanirbhar Bharat - the saffron party's slogan of self reliance and this is vital. 

For someone like me who has covered Nagaland in the 1990s, it is important to admit that nothing much

was done by successive state governments, or rather the efforts did not yield expected results. Before

trying to diagnose the causes of the malady, one can refer to the Assembly debate of 1995. The Non Payment

of salaries to employees of Nagaland Handloom and Handicrafts Development Corporation and 

Production issues concerning the Sugar Mill at Dimapur had figured prominently. Notably on one occasion both

the issues were raised by former NSF President R Paphino, a dynamic legislator belonging to NPC. 

Responding on behalf of the Industry Minister, the then Chief Minister S C Jamir had said that the Dimapur Sugar

Mill had turned into a 'very very sick unit'. He listed out four point charter of ailments which according to him had

plagued the Sugar Mill. -- One, excessive number of workforce, secondly, encroachment into land for sugarcane

cultivation, third, gross failures to pay sugarcane growers for raw materials and fourth, improper transportation

of sugarcane and related problems. 

Late Khekiho Sema was an Independent legislator and his flamboyant

style he had said - "Even if it is given free, there will be no one to accept the Sugar Mill". 

Predictable to Naga mannerism, the entire House burst into peals of laughter. Chief Minister Jamir was definitely unhappy

and for a change his friend but political rival Vamuzo almost sympathised with him when he said the 'mismanagement'

in the Sugar Mill was chronic. Of course he said during the UDF/NNDP stint it was doing well and there was another problem

that "the land allotted to people for cultivation of sugarcane was used for other purposes".

Members also maintained that with the work culture doing a vanishing act, the industries could not come up. I had met

S C Jamir (in 1995) on the issue and tried to raise some uncomfortable questions related to not tapping the potentials

of small scale industries in Nagaland over the years. Some of the issues that came up during discussions were 'rampant

dishonesty' associated with subsidies. I was told that about 30 percent of small scale units that benefited from subsidies

were 'not traceable' as if some magic spell had vanished them. Over 25 percent of such units were closed permanently

and some still enjoyed the 'benefits and aid' from various financial institutions without even thinking on how to repay the

loans.

Well, many years later some of these issues related to the poor state of industrialisation still exist. Extortion though

is a very serious issue, the Chief Minister and his 'dedicated G-60' will not like to raise it for the time being. But extortion

is only part of a problem. In fact, it will not be erroneous to say that Extortion itself is a good industry by itself post

1998. 

During his election rally in February in Dimapur Prime Minister Narendra Modi raised the issue displaying his

concern. Earlier R N Ravi had raised it and he was got rid off.  

Now, what the Prime Minister of India flagged off is not discussed in the Assembly. This means something is wrong 

somewhere. Either Modi was right or he was wrong; and if PM was wrong; any NDPP MLA could have 

censured the PM in the House.

But extortion is a reality and it's in the air people breathe. 

But on extortion, now the PM has to back his Feb 24 speech with concrete actions. The onus will of course

fall on Chief Minister Rio and his Home Minister and deputy CM Y Patton, who is also the BJP floor leader. 

In his statement, Chuba Ao raised the issue of a growing number of police forces. But we know the Khaki force

was not able to act against extortion menace. 

The 'opposition-less' House missed the opportunity to discuss and debate all these while they dedicated

the deliberations to appreciate Mr Rio's Budget presentation. Maybe the debate would have raised some

hopes for the helpless voters that people's representatives were willing to speak about real issues 

concerning common people in Nagaland. 

Before I conclude, one would like to refer to a statement made by a former Union Finance Minister, Prof 

Madhu Dandavate. "All talks of closing down the loss making sick public sector units is as meaningless

as killing those citizens who are sick". In Nagaland context too, the solution to the stalemate in public sector

units did not lay in closing them down. Instead there should be efforts to overhaul them.

Lastly, a sound atmosphere for SME development is linked to lasting peace and the end of militant-military

conflicts. Divergent interests have come into play in the peace parleys that began in 1997 and 'officially' 

concluded in October 2019. The status quo is only a reflection of distrust and the new government in Kohima 

will have to restart the tightrope walking to help carry forward the negotiations. 

It will do well not to try to bask in the reflected glories of some appreciation and laudatory

words by some MLAs on the Chief Minister's Budget speech. Economic growth of Nagaland is linked

to the Solution to insurgency cobweb and not in keeping the status quo.

ends