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The Morung Express
Dimapur VOL. IX ISSUE 289
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www.morungexpress.com
Monday, October 20, 2014 12 pages Rs. 4
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It is better to have a fair intellect that is well used than a powerful one that is idle BJP to govern Maharashtra, looks for Haryana CM [ PAGE 08]
‘Don’t Women, No Cry’
Dia Mirza Marries Sahil Sangha
[ PAGE 2]
Low expectations as China considers legal reforms
[ PAGE 11]
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–Bryant H. McGill
Liverpool edge past QPR [ PAGE 12]
[ PAGE 09]
Nagaland: A casualty of the Dependency Syndrome Moa Jamir
Dependency: An illustration
Dimapur | October 19
Over recent months, political parties in Nagaland state have faulted each other for the state’s precarious financial and economic condition. Figures have been tabled to substantiate claims, and levy blame on past policies (or lack of) for the current malaises. While a “vicious cycle of allegations” continues, howls of grievances emerge from every corner of Nagaland. Presently, Nagaland is infrastructurally limping, financially languishing and economically lagging, but the state seems to be under a perpetual “Rip Van Winkle spell”. Nagaland is “stagnant, under-developed and a dependent economy”, asserts Dr. Zarenthung Ezung, Assistant Professor of Economics, Nagaland University. He adds that Nagaland is lagging behind on all fronts and lacks physical and social infrastructural development. Likewise, Neichute Duolo, CEO and Coordinator of Entrepreneurs Associates says that a “dependency syndrome is the biggest casualty of Nagaland.” “Our economy is driven by government spending. It is based on a salaried economy, propelled by jobs provided by the state establishment.” He reasons that “family, school and society has convinced the youth that government jobs, no matter how unproductive or clerical, is ultimate success…” This, he maintains has “stunted potentials of the youth and their vibrancy in taking up self employment.” Illustrating the enormity of dependency on the government sector, K Wapong Longkumer, an entrepreneur from Dimapur, underlines the need to look at the number of govern-
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A. No. of government employee (regular): 91, 308 (2011 Census). If 1 employee looks after 3 people, nearly 4 lakhs people are directly dependent on government salaries. B. No. of Pensioner: 48,985 (31st March 2014, AG Office) + 2 dependent = 1 lakhs (approx.) C. Work-charged employee (Scaled, Fixed and Casual): 25,00030000 (unofficial) + 3 dependent each = 3×30000 = 90000. A+B+C = 400000+100000+90000 = 5.9 lakhs (approx.) direct dependent on government salaries. Add Govt contractors and other beneficiaries of various government schemes as well as traders, business, schools, and colleges from where the 5.9 Lakhs avail services, the dependency will nearly reach 2/3 of the population.
The Export Promotion Industrial Park (EPIP) in Ganeshnagar, Dimapur which has remained in a desolate state for the “want of appropriate investors” has now been changed into an Agro and Food Processing Special Economic (AFSEZ). The first and only SEZ in NE, NIDC Officials say that inquiries to set-up units have been received from various firms, but due to non-completion of “internal infrastructure”, it remains un-operational so far.
ment employees (both regular and work-charge) and pensioners; and their dependents, to have an informed assessment (See Box). Dr. Ezung, meanwhile, maintains that “corruption and mismanagement of public funds, non-creation of revenue generation in the state” are a major factor. The higher the rate of corruption, the lower the rate of funds available for development, thereby adversely affecting longevity of assets created. A prominent example, he asserts, is the status of roads in the state. A study undertaken by Dr Ezung concludes that corruption curtails developmental funds from the actual amount sanctioned, increasing inequality and employing unskilled/ inefficient manpower. From 1998 to 2010, it informs that Rs 442.56 crores was with-
drawn from various government offices using fake documents. In this regard, the Comptroller and Auditor General’s recent report highlights that Nagaland incurred an average expenditure of Rs 2.24, 10.22 and 45percent respectively on collection of revenue for Sale Tax/VAT; Vehicle Tax; and Stamp Duty and Registration fees in 2012-13 as against all India average of 0.83, 2.96 and 1.89 percent. “Our state’s financial mess is not because of New Delhi, but our own creation. We seem to have a bankruptcy of economic ideas and completely clueless as to how to make Nagaland a Revenue state. It does come as a surprise to see that Nagaland state has never had Economic Advisors to the Government although there has been many
Political Advisors,” argues Neichute. This amplifies how economic issues have been accorded minuscule importance in Nagaland. An independent consultant, Toshi Longkumer, maintains that the state is “too much government sector oriented, entrenched with corruption”. He argues that if the money amassed through corruption were used for investment, it would have generated some employment. A retired Nagaland Industrial Development Corporation (NIDC) official states that, the banking institution lacks confidence in the public and is often reluctant to cater to investment needs. However, their appraisal is valid, he continues, because of people’s tendency to consider loans as a government subsidy and not repay them. “We
NLA Speaker apprises Rijijju on security of NE people Kohima, october 19 (mexN): Nagaland Legislative Assembly (NLA) speaker, Chotisuh Sazo, along with Deputy Speaker Er. Levi Rengma met Union minister of state for home Kirren Rijiju in connection with the assault on two Naga youths in Gurgaon and the killing of one Mizo woman in Delhi. The duo visited the victims from Nagaland and met a few other students’ leaders. Briefing media persons at Hotel Saramati in Dimapur, Sazo said they apprised Rijiju
about the problems faced by the people of the NE in various cities and suggested that a special force/police can be recruited exclusively from NE states to protect NE people from such harassment and also to build confidence. “We appreciated his (Rijiju) concern about our people and his personal involvement in such a cases and also requested to play a role on how to create awareness among our people and plan strategies to change the attitude of the so called mainland Indian to-
wards the northeast people in which a collective efforts of all the northeastern states is being required,” Sazo said. The NLA Speaker said that they also met North East MP Forum secretary general Prem Das Rai and requested that all the North East MPs should come together irrespective of party-line and plan strategies on how to contain or prevent the prevailing problems being faced by the north east people and also to discuss other developmental activities.
‘Open doors to entrepreneurs’
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DimaPUr, october 19 (mexN): Former Finance Minister of Nagaland state, K Therie today stated that the reluctance of financial institutions to open their doors to entrepreneurs is “responsible for stagnancy of our economic growth” and for “migration of our youth to other cities.” The former Minister, in statement, informed that this policy of financial institutions is because “Nagaland’s loan beneficiaries are largely found wanting when it comes to recovery.” Secondly, he stated that the “administration and village authorities do not cooperate in recovering” the said loans. He further lamented that in Nagaland, “People depend largely on political favour and corruption to start their businesses.” The Minister then listed documents “imposed to obtain a loan.” They include a registered sale/gift deed, Jamabandi/patta, mutation order/ certificate, non-encumbrance certificate, land revenue payment receipt, trace map, search report from Civil Judge (Senior
Division), Civil Judge Senior Division and district judge that no case is pending, valuation report from registered valuer (revenue officer) and title investigation report as to the ownership rights as well as permissibility of creation of equitable mortgage of the same by a State Bank of India (SBI) empanelled advocate. These documents, Therie stated, have “disqualified” people of Nagaland who do not possess land or properties in the cadastral notified area. Cadastral areas are only Kohima and Dimapur towns. There is no government owned land in Nagaland and all lands belong to either an individual, the community or the village. The former Minister stated that village authorities are the best authority to certify land and its ownership as only they know whether a land is inherited or purchased. He added that the government does not have any records as to which land belongs to whom except cadastral areas. Further, land and its resources are protected under Art 371(A), he added.
He recalled that the Nagaland state government had amended the Nagaland Land Revenue Regulation Act 1978 in 2003, providing that, land or properties in the whole of Nagaland can be mortgaged by Financial Institutions and Banks and in case of bad loans, the mortgaged properties could be impounded. Therefore, he asserted that imposition of cadastral area rule is “against the spirit of the safeguards provided in the Constitution.” Therie recommended that mortgaging affidavits should specify the area of land with proper boundaries and that non-encumbrance free certificate from Village authority, countersigned by magistrate and market value as assessed by the Deputy Collector/Commissioner should be honored as a valid document for mortgaging. Trace maps, he added should be made for all villages by the Land Revenue Department immediately. He further proposed that the government may create a Debt Tribunal Court, with authority to impound and auc-
tion the attached land or properties to recover bad loans. The area specified in the Mortgaging Affidavit should be treated as identified, he added. Therie informed that the North East Development Finance Corporation Ltd (NEDFi) was created with a Rs 500 Crore authorized capital to benefit the NE by giving loans to establish industries and help entrepreneurs by giving 30% capital and transport subsidies. He said that the state government should coordinate with NEDFi and viceversa to remove difficulties. “It is the moral responsibility of NEDFi to develop the economy of the North East - particularly industries and employment of youths…” he added. “If the Board finds a committed person who has skill, he could be given funds to start straight away. However, if there is lack of commitment and sincerity, the loan should not be given. If one is committed but lacks adequate skills, he should be given skill development opportunities,” he prescribed.
CAG Report: • Expenditure on salaries increased by a 108.41 % from 1249.39 crores (2008-09) to 2603.87 (2012-13). • 91% of the total revenue of the state comes from Centre with 15 percent as Central transfer and 76% as grant-in-aid. • Revenue expenditure varied from 76.60 to 81.66 % of the total expenditure during 2008-2013 implying that it was used for past obligation such as interest payment or salaries without adding anything to State’s infrastructure only change our lifestyle when we get loans instead of making a productive investment.” He further attributes a major part of the fault to political pressure on the screening process and appraisal of loan seekers. As a result, the scheme does not reach genuine entrepreneurs and those selected consider the loan as government largesse. According to an NIDC Annual Administrative Report, the cumulative non-performing assets (NPAs) of bank as of March 31 2014, considered as “loss” was 43.92 crores and “doubtful loan” comes to nearly 25.15 crores. The cumulative disbursement of loans was 158.76 crores. In this context, a recent survey by Mokokchung Entrepreneurs Consortium on the status of government sponsored loans through various banks in Mokokchung quoted
a bank manger of a Nationalised Bank saying “The beneficiaries are availing the loans for the sake of enjoyment and personal purpose… the projects proposed is for the selection process and implementation is almost 95% on negative trend and recovery is almost less than 10% in actual terms.” Commenting on the investment scenario, Duolo maintains that the state has a “weak capitalist economic model” lagging in entrepreneurial activity. “During the last decade, the state has seen mushrooming of first generation traders who are yet to become Model entrepreneurs,” he adds. He further says that a vibrant financial service is key to the economy’s progress. Terming the state’s economy as a “Ping Pong economy,” Duolo states, “Money comes
from New Delhi and it goes back to main land India.” “All the essential commodities supply in Nagaland are controlled and managed by non Nagas. Profits are naturally not invested in Nagaland by such business groups. Money flows out of Nagaland.” Toshi talks about the outflow through higher education. “A rough estimate in Delhi shows that more than 2000 students taking varied course. If we take conservative monthly expenses of Rs 8000 per month, the monthly outflow is Rs. 1.60 crores and 19.20 annually. If we add tuition fees and other expenses, it will nearly reach 50 crores alone in Delhi”, he maintains. A recent HRD Ministry mandated report, Annual Status of Higher Education of States and UTs had reported that Nagaland, with 52 colleges, has a share of 0.16% of all colleges in India and ranks 25 in terms of total colleges in any state in India. It also has 20 colleges per lakh population in comparison with the all India average of 23 colleges per lakh population. According to Dr Ezung, there is “huge outflow” as people have become too dependent and “have forgotten to work for ourselves”. “We locals have dignity of Labour just on the day those organisations we are affiliated to declares a day of social work, but we don’t have dignity of labour as a profession”, exclaims Wapong adding, “Everyone wants security without working for it. Our vision as a welfare state maybe was not realistic after all”. The commentators while acknowledging the security situation in the state as an issue however lament that this has become a “convenient excuse” for corruption, inefficiency and mismanagement.
‘If you till the land, income will come’
Parliamentary Secretary for Excise and Housing, T Torechu (4th left) along with Horticulture officers of Kiphire district, farmers and others at the training programme on ‘Winter vegetables production’ held at Pungro village.
Morung Express news Pungro | October 19
In continuation of the State Horticulture department’s initiative to boost vegetable production in interior parts of Nagaland, Pungro village in Kiphire district was declared a “Vegetable village”, the fifth vegetable village in the district. The declaration of “Pungro Vegetable Village” was made by parliamentary secretary for Excise and Housing, T Torechu, during the training programme on ‘Winter vegetables production’ with the theme “Vegetables for sustainable development” and distribution of seeds organized by the Horticulture Department at a farmhouse in Pungro village on October 16 last. Torechu in his address said local farmers must make the best use of the training and “translate into reality” what they have learnt from the training. He said the training and distribution of free vegetable seeds by the department is a rare opportunity for villagers of Pungro area to become self-sufficient in vegetables. “Let us learn to be productive and self-sufficient in veg-
etable production. Why should we always import vegetables from other districts when we have enough fertile land to meet our vegetable requirement? If you till the land, then income will come”, Torechu said. The parliamentary secretary reminded that the key to success is “hard work.” To further encourage vegetable farmers to give their best, Torechu also announced that he would give a cash award to the best vegetable farmer of the area. District horticulture officer (DHO) Kiphire, Kilemsungba, said with announcement of Pungro as a vegetable village, Kiphire district has the highest number of vegetable villages (five) with other districts having three vegetable villages each. This is keeping in mind that Kiphire is one of the most interior districts and import of vegetables has become a costly affair for the poor villagers. Horticulture officer, Kiphire, Senka Jamir, said Pungro area with its fertile soil has the potential to contribute in a huge way to the vegetable basket of the state. He also said the area with favourable climate has good prospects
for seed production farming like Himachal Pradesh and Jammu and Kashmir. EAC Pungro, Chonpenthung Ezung, in his address said farmers should take the initiative and not wait on the government alone to assist them in every manner .The EAC also stressed on the role of women in agriculture and vegetable farming. Chonpenthung further cited success stories of vegetable farming like Zhavame village in Phek district to encourage the farmers. Yarba, a progressive farmer from Longkhum village in Mokokchung district also shared the success story of Longkhum vegetable village. In the technical session, the resourcepersonsandtopicsincluded Senka Jamir, HO Kiphire (‘Factors determining production of vegetables’), Arila Thonger, horticulture extension assistant (‘Commercial cultivation of winter vegetables’), Lhuveto Keyho, horticulture extension assistant (‘Integrated pest and diseasemanagementofwintervegetables’) and Wapng Jamir, technical assistant MIDH (‘Nursery and seedling management of winter vegetables’).
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