People's Democracy

ON August 25, with much fanfare, the Jharkhand chief minister Babulal Marandi announced the state’s industrial policy. Five days before, on August 20, at the local Town Hall in Ranchi, the state capital, a convention organised by the Left parties had reacted to the earlier circulated draft of the policy, saying that the policy is not for development but for the destruction of Jharkhand (Yeh Jharkhand to Vikas ke liye nahi, vinash ke liye hai").

The state-level convention on the Jharkhand government’s draft industrial policy was organised by six Left parties --- namely, the CPI(M), CPI, CPI(ML), Forward Bloc, RSP and Marxist Coordination Committee --- and joined by 15 mass organisations of workers, peasants, women, youths, students and cultural activists. The convention, which was attended by about 1,000 delegates, unanimously adopted a resolution rejecting the policy draft. As for an alternative path of development and industrialisation, the convention adopted a 15-point charter of demands. In pursuance of these demands, the convention decided to organise mass mobilisation campaigns in blocks, industrial areas and districts, to hold regional conventions at Jamshedpur, Dhanbad, Hazaribagh and Dumka in September, and to organise a massive joint state-level rally at Ranchi. The date of the rally will be decided later.

The declaration of the convention pointed out that, dictated by the World Bank and IMF, the proposed industrial policy would adversely affect not only the workers and unemployed youth, but also the other toiling sections including the peasants and tribals. The convention demanded preparation of another industrial policy after wide ranging consultations with all trade unions, other mass organisations and all political parties.

Through this industrial policy, the BJP-led state government of Jharkhand is out to hand over the entire job of industrialisation and development of this mineral-rich state to foreign and Indian monopoly capital on their terms. The core issues on which the Left parties and mass organisations have raised objecting are as follows.

Firstly, the industrial policy decided to form a high-power committee to review the "applicability" and "relevance" of the Chotanagpur Tenancy Act 1908 (CNT) and Santhal Pargana Tenancy Act 1949 (SPT). These two existing land acts of Jharkhand provide some protection to tribal lands despite their limitations and loopholes. In violation of the Supreme Court’s "Samta" judgement banning the lease or sale of tribal lands for private industrial purposes in scheduled areas under the fifth schedule of Indian constitution, the state government’s industrial policy allows large-scale acquisition of tribal lands in scheduled areas by foreign and Indian capital.

Further, this high-power committee will review the "applicability" and "relevance" of forest act and all labour laws, inclusive of Minimum Wages Act, Employment Exchange Act, etc, in favour of foreign and Indian capital.

Secondly, the central public sector undertakings (CPSUs) play an important role in the industrial and economic life of Jharkhand. The state has more CPSU workers compared to any other state, due to its rich mineral resources and mining-related activities. It is estimated that about 60 per cent of the state’s population directly or indirectly depends on the CPSUs and related activities. At least one third of the state’s revenue directly and much more indirectly depend on these CPSUs. But the drive to dismantle and privatise the CPSUs, launched by the central Vajpayee government, has had a serious impact on these industries, the workers, the unemployed youth, a majority of the people and the economy of the state. The state is going though a process of rapid deindustrialisation and rising unemployment. The industrial policy of the Jharkhand government does not have any place for the CPSUs and even state PSUs. In reality, the state government’s industrial policy does not have any role for the central and state governments accept in providing land, tax relief and other concessions to foreign and Indian capital.

Thirdly, infrastructure development is being handed over totally to foreign and Indian monopolies, to be undertaken in a "commercial format." On the World Bank model, the power sector will be restructured despite the Enron experience in Maharashtra. Electricity distribution at Ranchi, Dhanbad and Jamsehdpur will be handed over to private companies immediately.

Fourthly, in name of ending the so called "inspector raj," the policy debars the inspection of factories and establishments by factory inspectors and labour inspectors, despite complaints of violation of laws by industrialists. There will only be annual inspections after giving a "proper" notice!

Fifthly, the state government’s industrial policy will lead to another bout of large-scale displacement of the tribals and non-tribal poor. It may be noted that the state has a higher number of displaced persons compared to any other state, due to mining or other industrial and developmental activities. These activities have alienated the unemployed and the people from their lands without proper rehabilitation, compensation and jobs.

The state government’s industrial policy is, obviously, in tune with the Vajpayee government’s economic and industrial policy. The people of Jharkhand, alongwith the people of the rest of India, are already reeling under the onslaught of globalisation. The state government’s industrial policy is going to aid and complement this very onslaught.