RAJYA SABHA SPEECHES OF

Puratchi Thalaivi J JAYALALITHAA

(1984 – 1989)

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PREFACE

Here is a compilation of all the speeches made by Puratchi Thalaivi J Jayalalithaa in the years 1984 to 1987 when she was a Rajya Sabha M.P. and the AIADMK Deputy Leader in Parliament and was also the AIADMK’s Propaganda Secretary. Puratchi Thalaivi J Jayalalithaa’s speeches in the Rajya Sabha have been chronologically arranged subject-wise i.e., the dominant theme, mentioning the occasions on which the speeches were delivered. While Puratchi Thalaivi’s speeches have been given in extenso, the speeches of the other Honourable Members and the Ministers who sought clarification from her on any point have not been reproduced, although the contexts in which Puratchi Thalaivi made her observations have been mentioned in the footnotes. Only those formal parries of Puratchi Thalaivi’s speeches, salutations and other interjectory remarks have been omitted. Portions of her speech delivered in Hindi and the Sanskrit quotations cited by her have been given in Roman script. Puratchi Thalaivi J Jayalalitha’s speeches covering the period 1984-87 give us a glimpse of her thoughts and ideas and are as relevant today as they were then. 3

INTRODUCTION

Puratchi Thalaivi Dr. J Jayalalithaa despite her stormy political career ever since she was inducted into politics by Puratchi Thalaivar MGR has always wanted to be a loner, happy amidst her books and music tapes. But that was not to be. She was steered into politics by her great mentor and with her astounding love for the people of our country, she has been battling all along for their welfare. This is well revealed during her incumbency as an MP in the Rajya Sabha in the Eighties and in her wide ranging speeches which are gathered here for the first time. Her fluency in the English language was admirable and so too her fluency in her mother tongue Tamil and her command of Hindi as well. This did not deter her from seeking a rightful place for Tamil as one of the official languages apart from her enjoining the ruling parties, from time to time, to accord it the status of a classical language because of its ancient origins. Puratchi Thalaivi's speeches in the Rajya Sabha were noted for their incisiveness and deep understanding of the subject under discussion. She never ventured to speak on any topic unless she was conversant with and sure of all the facts. Indeed this was the hallmark of her speeches, serving as a sort of political apprenticeship, enabling her to emerge as the Chief Minister of Tamil Nadu. Puratchi Thalaivi's stewardship of Tamil Nadu from 1991-1996 has always been considered as a golden period in the annals of the State for her many achievements whether it be the great many welfare schemes she launched for the weaker sections of our society, the foundation stone she laid for the industrialisation of Tamil Nadu, or the deep concern she voiced for the problems faced by the people and the resolute action she took in weeding out the terrorist menace in Tamil Nadu. Puratchi Thalaivi Dr. J Jayalalithaa is a national leader in her own right, being a trail blazer in the country's developmental efforts and her rule as the Chief Minister of Tamil Nadu from 1991-1996 brought her encomiums from world leaders like Mother Teresa, specially for her innovative social welfare measures and for upholding women's rights. Significant among the many awards received by her is the World Statesman Award 1999. Dr. J Jayalalithaa holds the honorific title PURATCHI THALAIVI (Revolutionary leader) conferred on her by the people of Tamil Nadu. With the DMK coming to power in Tamil Nadu, she faced vindictive action from the ruling party for daring to rebuild the AIADMK from the trying days it faced after the demise of Puratchi Thalaivar Dr. MGR. Continuous harassment was the order of the day and many political forces were arraigned against her in a bid to 4 destroy her and her party. But the party cadres were one with her in stonewalling such moves. Often-times Puratchi Thalaivi J Jayalalithaa has expressed her immense gratitude to the party workers at the grassroots level reflecting her great love for the cadres. The 1998 Lok Sabha elections proved her great power and political acumen in Tamil Nadu with the alliance parties led by the AIADMK securing a landslide victory. She came once again centre - stage on the national political scene. Once again, because as a Rajya Sabha MP in the eighties she was a veritable stormy petrel. Soon the machinations of the BJP-led Government started working against the interests of the people of Tamil Nadu. Also, the BJP forged an arcane alliance with the ruling DMK party in Tamil Nadu to serve its own nefarious political ends with little or no regard for its own ally, the AIADMK, which had paved the way for the formation of the BJP-led coalition Government at the Centre and also gave the BJP a foothold in Tamil Nadu. None of the demands voiced by the AIADMK and incorporated in the National Agenda of the BJP-led Government was even remotely sought to be fulfilled. During its 13-months rule, the BJP-led Government became a threat to the security of our country, the Minorities were terrorised and the arbitrary exercise of power compelled Puratchi Thalaivi to first withdraw the AIADMK Ministers from the Government and last of all the party's support to the Government. Indeed that was the defining moment. The BJP-led Government sans the AIADMK lost its confidence vote in the Parliament. Despite the best efforts of Puratchi Thalaivi Dr. J Jayalalithaa, the Congress, being then the second largest party in the 12th Lok Sabha, could not form an alternative Government either on its own or by heading a coalition Government in alliance with the other secular parties. The obduracy of some of the leaders of the secular parties was largely responsible for wasting the golden opportunity provided by our Puratchi Thalaivi to form an alternative Government. Thus the Lok Sabha elections were precipitated in September 1999 with the National Democratic Alliance headed by the BJP forming the Government at the Centre. The rest is part of current history. The Rajya Sabha speeches of Puratchi Thalaivi made during the period 1984- 1987 are relevant even today as the very same problems which afflicted our country then vis-a-vis Centre - State relationship, sharing of Cauvery water, taxation laws, status of women, conditions in our jails, the problems of the handloom weavers and police apathy continue to afflict us, only in a greater measure. Puratchi Thalaivi posed the problems in a forthright manner without any ambivalence keeping Tamil Nadu's interests ever at heart. To bolster her arguments during debates in the Rajya Sabha, she cited appropriate quotations from savants, philosophers, our revered national leaders and in relevant contexts from Perarignar Anna and Puratchi Thalaivar MGR's speeches. 5

For the common man in all walks of life, for the Parliamentarians and the wider class of intelligentsia, the speeches of our Puratchi Thalaivi will offer rewarding reading apart from greater outreach. Great has been her grounding in politics, great have been her multi-faceted achievements and great again the expectations of the people of our country from the AIADMK supremo in the centre of the nation's politics today.

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Contents

1. Power Projects for Tamil Nadu ..... 8 - 14 Maiden speech made on 23.4.1984 during the debate on the working of the Ministry of Energy

2. Fair Share for States in a Federal Polity ..... 15 - 22 During the discussion on the Appropriation Bill on 25.4.1984

3. Centre - State Relations: ..... 23 - 33 Linking the Ganga & the Cauvery Apropos of the Finance Bill, on 2.5.1984

4. Overhauling our Educational System: ..... 34 - 44 Stress on Vocational Training Classical Language Status for Tamil Grant for Tamil Research Studies Discussion on the working of the Ministry of Education, Culture and Social Welfare on 5.5.1984.

5. Situation in Sri Lanka ..... 45 - 52 On a calling attention motion on Sri Lanka on 7.5.1984

6. Constitutional Status of Jammu & Kashmir ..... 53 - 61 Calling attention motion on recent developments in Jammu & Kashmir, 26.7.1984

7. Industrialisation of Tamil Nadu, ..... 62 - 70 State Autonomy in Education During the debate on the Appropriation Bill for 1984-85 on 9.8.1984

8. Plight of Handloom Weavers Country-wide ..... 71 - 73 'Special mention' speech on need to enact suitable legislation reserving certain varieties of cloth, 23.8.1984

9. Iniquities of the Dowry System ..... 74 - 76 Debate on the Dowry Prohibition Bill, 23.8.1984

10. Amending Taxation Laws; ..... 77 - 84 Tax Evasions and Cine Artistes Debate on Taxation Laws (Amendment) Bill, 27.8.1984

11. Land Acquisition Act and ..... 85 - 90 Harijan Welfare Schemes Debate on the Land Acquisition (Amendment) Bill, 28.8.1984

12. Thoughts on the 1985-86 Central Government ... 91 - 100 Budget- Accent on Industrial Development Speech made on 21.3.1985 7

13. Evolving a National Textile Policy: ..... 101 - 108 Protecting the Handloom Sector Debate on the new National Textile Policy on 13.8.1985

14. Income-Tax & Wealth-Tax Arrears of Film Artistes 109 - 111 Personal Explanation under Rule No: 241 given in the Rajya Sabha, 19.8.1985

15. Sorry Plight of Women's Homes ..... 112 - 114 ‘Special mention’ in the Rajya Sabha on 20.8.1985

16. The JIPMER Issue ..... 115 - 116 Supplementary question on JIPMER in the Rajya Sabha on 12.3.1986

17. A Case of Police Apathy ..... 117 - 119 Special mention on Police Apathy on Technical Grounds of Jurisdiction made on 13.3.1986

18. Permanent Solution to Flood Havoc, ..... 120 - 125 Integral Coach Factory Expansion, Sethusamudram Project and Rapid Transport System for Madras Speech during debate on Appropriation (Vote on Account) Bill, on 18.3.1986

19. Analysing the General Budget 1987-1988 ..... 126 - 138 Abolition of Personal Income-Tax, Taking India to the 21st Century, Modvat, Career in the Army, Plan Allocation for Tamil Nadu, Second Atomic Power Station for Tamil Nadu, The Cauvery Water Dispute, Water for Madras Speech during debate on the General Budget for 1987-1988, 9.3.1987 & 10.3.1987

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Power Projects for Tamil Nadu

Maiden speech made on 23.4.1984 during the debate on the working of the Ministry of Energy 9

Power Projects for Tamil Nadu

Mr. Deputy Chairman, I thank you for having given me this opportunity to express my views on the subject under discussion - the working of the Ministry of Energy. Since the Hon. Member who spoke before took exactly thirty minutes and since this is my maiden speech, I would request you, Sir, to give me at least 15 minutes. At the outset, I wish to assure you, Sir, and all the Hon. Members here that I am fully aware of the noble traditions of this august assembly which, since its inception has been and continues to be a meeting place of some of the finest intellects in our country - of scholars, statesmen and towering personalities who have distinguished themselves in diverse fields. Much comment has been made in the Press recently about the present infusion of “Young blood” into this House of Elders. I hasten to reassure you, Sir, and all senior Members here that they need harbour no apprehension on this score. I give you my solemn word that I shall never fail to uphold the dignity, prestige and decorum of the Rajya Sabha, and I shall do nothing to detract from the lustre that has been added to it by the luminous personalities who have graced these hallowed portals, who are no longer with us, and to whom I pay my respectful homage as a new entrant. I deem it a great honour to stand here and speak on the floor of the very same Rajya Sabha where 22 years ago, in 1962 our great departed leader ANNA rose to make his forceful maiden speech which electrified the entire nation. While Anna electrified the whole country with his maiden speech, the theme of my maiden speech today is going to be dedicated mainly to the subject of Electricity. My leader, the Chief Minister of Tamil Nadu, Dr. M.G.R., the founder leader of the All India Anna Dravida Munnetra Kazhagam to which I have the honour to belong, has sent me here, together with my colleagues in the party, to echo the voice of the people of Tamil Nadu in this national forum. In particular, I have come here 10

as the representative of the weaker sections of our society, the toiling masses, the crores of humble workers, farmers, poor agricultural labourers and women, to give oral manifestation to their feelings, aspirations and legitimate desires and make them known to the rest of the country. There are many senior Members here, who are far more knowledgeable than I am, and vastly richer in experience. Some of them may disagree with some of the views I put forth. They may dispute a certain point I make, and by virtue of their debating skills they may even win the argument. But such a victory will be only a victory of words, and not triumph over truth. I wish to emphasize the fact that the fundamental purpose of my speaking here in the Rajya Sabha is not to engage in wordy duels with other Members, but to state positive truths to the best of my knowledge and to draw the attention of the nation to certain crucial issues. Tamil Nadu has been facing acute shortage of electricity for more than a decade. The State Government was forced to impose power cuts ranging from 25 per cent to 100 per cent intermittently from 1971-72 onwards to overcome the shortage. As a result of the repeated power cuts, the industrial and agricultural production in the State has been affected adversely and drastically. Tamil Nadu has very meagre hydel potential. Most of the economical hydel potential has either already been exploited or is already on the anvil. The balance potential is either tied up in inter-state disputes or is too small and seasonal for economic exploitation. The only fossil fuel that is available in the State is lignite and efforts have already been undertaken to utilise this potential in an optimum manner. Tamil Nadu has almost exhausted its hydel resources and has no coal resources at all. For setting up more coal based thermal stations, there are formidable constraints in that coal has to be hauled over long distances, either from Singareni in Andhra Pradesh or from Bengal or Bihar, rendering the cost too high and the availability of coal uncertain. It was in this context — that the State Government pressed for the location of the Nuclear Plant in the State -- and the Government of India was kind enough to concede the demand by sanctioning the Madras Atomic Power Project with the generation capacity of 235 m.w. in 1967. Later in the Fourth Five Year Plan, the second unit, also with a generation capacity of 235 m.w. was also sanctioned. At that time, there was a clear understanding between the State and the Central Governments - that the entire output from Kalpakkam would be allocated solely to Tamil Nadu to meet the urgent pressing needs of the State. 11

In the year 1968, when the necessary lands were acquired for the Project, the Government of Tamil Nadu agreed to make available - free of cost - 2,500 acres of land required for the Project. The lands were at that time valued at about Rs. 53 lakhs. This commitment was based on the confirmation given by the Madras Atomic Power Project authorities to the effect that in return, the entire energy output from the project would be sold to the Government of Tamil Nadu or its nominee, and the cost of energy of MAPP would be calculated excluding the value of land gifted by the State Government. This amounts to an irrevocable, immutable contract which cannot be repudiated or rescinded by the efflux of time. The Annual Power Survey Reports - the third published in 1965, the fourth published in 1966, the fifth published in 1968 and the sixth published in 1970 - assessed the full benefits from Kalpakkam for Tamil Nadu. In effect, the above ­mentioned Annual Power Survey Reports clearly showed that the entire power generated from Kalpakkam was intended only to meet Tamil Nadu’s needs and the forecasts of power requirement and availability were projected accordingly. It was only in late 1970 that the then Minister for Industries and Power - Dr. K.L. Rao, suggested that the power from the second unit might be shared equally by Tamil Nadu and Andhra Pradesh. Even at that time, no questions were raised about the allotment of the entire power produced by the first unit to Tamil Nadu. It was in these circumstances that on 3rd June, 1971, the Prime Minister, while answering a question in the Rajya Sabha - Q.No: 590 - raised by Mr. N.R. Munuswamy - gave a categorical assurance that the entire output of the first unit and half of the output of the 2nd unit of the MAPP would be made available to Tamil Nadu and the balance output of the second unit would be earmarked for the neighbouring States in the Southern Region. The Tamil Nadu Government prepared a scheme for the Kadamparai Pumped Storage Project based solely on the assumption that the State would positively be able to avail of the entire power produced by the Kalpakkam Nuclear Plant. In fact, this project was conceived at the instance of the C.E.A. - Central Electricity Authority - to enable the Kalpakkam Plant to operate at its full capacity all the 24 hours of the day. The C.E.A. when it conducted integrated studies to examine the operational feasibility of Kadamparai took into account the availability of the full output from Kalpakkam. The Planning Commission gave its concurrence to the Kadamparai project in its letter No. 1-26(3)/2/72 - P&E dated 13th February, 1973, only after satisfying itself that adequate off-peak power would be available and in its forecasts, the entire output of Kalpakkam was taken into account. If the entire power produced by Kalpakkam plant is not made available to Tamil Nadu, the expenditure on Kadamparai may become infructuous. 12

With the severe financial constraints it is already burdened with, this unfruitful expenditure is something the State Government can ill afford. The Planning Commission while clearing new projects for Tamil Nadu has all along been reckoning the full output from Kalpakkam for Tamil Nadu in its calculations. It must be noted that new projects are cleared only if the State is expected to face a deficit after taking into account the availability from Kalpakkam. As late as 1977, the Planning Commission, while affirming clearance for the Tuticorin plant vide its letter No. 1-26(3) / 76- P&E dated the 14th July, 1977, issued the sanction only after satisfying itself that the State would be facing a deficit even with the full output computed to the Tamil Nadu account. The Tamil Nadu Government has been repeatedly pressing the Centre for the allotment of the entire power from Kalpakkam to Tamil Nadu. The Chief Minister of Tamil Nadu in his D.O. letter dated 1st June, 1982, to the Prime Minister, once again emphatically stressed the need to allocate the entire output from Kalpakkam to Tamil Nadu. The Union Minister for Energy, in his letter dated 15th October, 1982 in reply, while accepting the commitment made earlier, stated that the power from Central Projects would have to be shared by all the States in the Region. The Government of Tamil Nadu cannot agree to this proposition. Firm commitments made by the Centre at a point of time cannot become void simply because of the efflux of time. The Energy Minister stated that the new schemes proposed for Tamil Nadu would be cleared quickly. In this context, it is necessary to accentuate the fact that in the Sixth Five Year Plan the share of Tamil Nadu is 630 m.w. which is dismally low as compared to 19666 m.w. for all India. The primary reason is that adequate schemes were not sanctioned for Tamil Nadu. Between 1967, when the Kalpakkam nuclear plant was sanctioned and now, Tamil Nadu sent 27 schemes for sanction to the Centre but only 11 schemes were cleared by the Planning Commission and that too after considerable delay. The main reasons for this state of attairs are that the hydro-electric schemes proposed by the State are small, seasonal and disproportionately costly as compared to schemes in the other parts of the Southern Region and coal supplies could not be linked. Sanction for the Mettur Thermal Project was delayed for more than six years simply because coal linkage could not be established. Because of the aforementioned constraints, all the Governments that were in power in the State have been pressing for the establishment of a second nuclear plant in Tamil Nadu. However, no favourable decision has yet been taken by the Centre in this regard. Tamil Nadu continues to face a severe deficit and it must be emphasized that the State is still expected to face a deficit even after taking into account all the already sanctioned schemes and the share from Central projects like Ramagundam, the Neyveli 2nd Mine cut etc. The State has sent two proposals, one for the North Madras Station with an estimated generation capacity of 1,050 m.w., and another 13

proposal for extension of the Tuticorin Thermal Station, with an estimated generation capacity of 420 m.w. as early as in 1981. Clearance for these schemes is still pending because coal linkage could not be established. These facts which I have stated, clearly articulate the exigent need to allocate the entire power output from the first unit of Kalpakkam to the Government of Tamil Nadu. I wish to impress upon the Centre that the State Government is pressing for the allocation of the entire power from Kalpakkam, not for the sole reason that the Centre had made a commitment, and the State insists upon its fulfillment as a mere technical formality, but because the situation is genuinely of such import and seriousness, that the interests of the State would be affected adversely, indeed grievously, if the full output is not made available to Tamil Nadu. But the Union Minister for Energy, in his letter dated the 31st March, 1984, has informed the Government of Tamil Nadu that the power from the Central projects would not be firmly allocated to one State or States, but that the Centre would decide the distribution of power from time to time taking into consideration the respective power positions in different States in a Region. The Union Minister for Energy has also indicated that the Central power stations can only supplement the efforts of State Governments. According to the principles evolved by the Government of India in 1978, the power generated from the Central sector power stations to be constructed by the National Thermal Power corporation, N.T.P.C. is proposed to be allocated between the various States in a Region on the basis of past energy consumption and quantum of Central assistance, giving equal weightage to these two factors and after providing for an additional 10 per cent allocation to the home State and keeping 15 per cent unallocated with the Centre for distribution subsequently on the basis of actual deficits at any point of time. This formula is irrational as it reduced the allocation of power to deficit States which can absorb more power, and allots more power to power surplus States which do not need the allocation. The formula has no relevance at all to the actual power needs of each State and allocates power to all States of the Region irrespective of their deficits or surpluses. This will lead to an anomalous situation wherein a deficit State will continue to be deficit even though the Region may be surplus. The deficit States will have to continue to buy power from the surplus States. The deficit States will have to continue to buy power from the surplus States whose surplus keeps on increasing because of this illogical formula. The logical, acceptable principle that should be adopted would be to allocate the power of the Central Sector power stations in direct proportion to the respective deficit of each individual State as assessed by the Annual Power surveys conducted by the Government of India. Tamil Nadu has the largest deficit among the Southern States 14

and is forced to buy power every year from the surplus States of the Region at exorbitant rates. The inappropriate formula already mentioned is now sought to be applied to the second power station being constructed by the Neyveli Lignite Corporation. Out of 630 Megawatts to be produced by the Second Unit, it was intimated in 1980, that only 176 m.w.s. would be allocated to Tamil Nadu. It is significant to point out in this context that before planning the second unit of Neyveli, the Government of India had asked for, and obtained in 1973, a guarantee from Tamil Nadu that the entire power produced would definitely be absorbed by Tamil Nadu. To put it in a nutshell, the project was finalised only on the basis of this firm assurance and categoric commitment confirmed by the Government of Tamil Nadu. The expectation that the entire power of the second unit of the Neyveli Lignite Corporation would be allotted to Tamil Nadu has been the foundation on which the State has drafted its power planning throughout. Given these circumstances, if the entire power from the Neyveli Lignite corporation is not allotted to Tamil Nadu the power scarcity in the State will prove disastrous to its interests. A resolution was moved in the Tamil Nadu Legislative Assembly on 7th March, 1984, and in the Legislative Council on 8th march, 1984, pressing for the allocation of the entire power output from Kalpakkam and Neyveli to Tamil Nadu. In conclusion, I quote from our great departed leader Anna’s speech in the Rajya Sabha in December 1963 : “The working of the federal structure all these years has created a sense of frustration in the minds of the States. The States are fast becoming dole-getting Corporations. They feel that they are relegated to the back­ground and there is the very natural instinct in them that they should be given more power.” Anna’s words hold good even today - 21 years later. I reiterate, Tamil Nadu genuinely feels it should be given more power in 2 contexts. Firstly, more power in the general sense that Anna meant, i.e., more powers for the States. And secondly, in the immediate specific sense that Tamil Nadu feels it should be given more power in the form of Electricity from Kalpakkam and Neyveli. 15

Fair Share for States in a Federal Polity

During the discussion on the APPROPRIATION BILL on 25.4.1984 16

Fair Share for States in a Federal Polity

Mr. Deputy Chairman, Sir, the Appropriation Bill has been discussed in the Lok Sabha and is being discussed in the Rajya Sabha. The Hon. Finance Minister submits this Appropriation Bill to obtain the assent of the Members of Parliament to draw funds from the Consolidated Fund of India for multifarious purposes, to implement various schemes. Those various schemes, we are informed, are purportedly for the benefit of the nation. Sir, we speak of the Consolidated Fund of India. How is this Fund formed in the first place? What constitutes its reserves? Is it not the revenue contributed in several ways by all the States of India that constitutes the Consolidated Fund of India? Through innumerable taxes the States regularly part with massive sums of money - like sacrificial oblations at the altar of the Central Government - and it is the States which keep replenishing the reserves of the Consolidated Fund of India. Sir, we understand very well the necessity for such a Fund. But the rates of taxation are so high and the range of taxation is so all-encompassing that the Centre practically appropriates all the money that is available and the State Governments are left with little or no funds to administer the States they are responsible for. Even the water we drink is taxed. The only item - if I may so refer to it - that is left untaxed is the air we breathe, and even that air is not free - I mean, it is not free from pollution. It is contaminated with smog and harmful oxides and poisonous fumes. As such, is it not natural for the States to expect sufficient Central investment in each State in direct proportion to the contribution the State makes to the gross national revenue? When I speak of the contribution of a State, I use the word “contribution” in a broad, general sense, and I am not referring to any specific mode of contribution, of any specific product or material. That varies from State to State, depending upon its natural resources, climatic conditions and various other factors. 17

Take the case of Tamil Nadu which I have the honour to represent in this Council of States. The Tamil Nadu Government has requested the Government of India time and again to allot 80,000 tonnes of rice per month from the Central pool. But after refusing point-blank in the beginning and then agreeing to send very meagre allotments, step by step the Centre gradually raised the allocation to the munificent total of 35,000 tonnes per month, which does not amount to even half the allotment requested by the State. For the past two months, the Government of India has been even more lavish in its bounteousness, and has reduced the allocation to only 25,000 tonnes per month. Sir, please consider the circumstances which have compelled the Government of Tamil Nadu to repeatedly implore the Government of India to allot more rice to the State. For the past three years Tamil Nadu was afflicted by severe drought conditions. Due to the failure of the monsoons for three years in succession, not only was agricultural production adversely affected, but people in the State suffered due to scarcity of even drinking water. The long period of drought was immediately followed by unprecedented unseasonal rains which were so torrential as to cause widespread devastation and havoc due to floods. The honourable Finance Minister, Mr. Pranab Mukherjee, is a very knowledgeable person. At one time he was a Professor of Economics and History, I am told. Surely the honourable Finance Minister remembers the elementary principle which every student of economics knows fully well - that a period of depression will usually be followed by a period of prosperity. But Tamil Nadu has experienced the extreme misfortune of proving to be the exception to this golden rule. In Tamil Nadu, unfortunately, calamity followed calamity; one natural disaster has been followed by another. When a State in the Indian Union is battered by such catastrophic visitations of Nature, where else can the State look to for succour and relief but to the Government of India? Is it not the constitutional duty of the Government of India to hasten to provide the necessary relief and assistance when a State is reeling under the dire pressure of such hardship? Yet, despite repeated representations made to the Government of India by the Tamil Nadu Chief Minister and the Food Minister, the Centre still refuses to accede to our request for 80,000 tonnes of rice per month. For flood relief we requested the Government of India to allocate 217.73 crores of rupees, but so far the Centre has allotted to Tamil Nadu the princely sum of Rs. 77.54 crores. The Tamil Nadu Government has, on its own, spent Rs. 114.28 crores for flood relief. Sir, the criterion for judging the progress of a nation is its industrial development. In a country like India where unemployment is rampant, further industrialisation is the only way to wipe out the scourge of unemployment. In the situation obtaining today in our country, a State Government can only encourage and aid the development of small scale industries. To a limited extent a State 18

Government can assist in the development and growth of medium and major industries. But to start any really large - scale heavy industries, it is necessary to obtain the sanction of the Government of India. Between 1977 and 1983, 449 medium and major industries have been started in Tamil Nadu. The Tamil Nadu Government recognises the fact that medium and major industries are necessary for the growth and development of small-scale industries. So far, through these and various other schemes, the State Government has created employment opportunities for 30 lakh people. Despite this achievement, unemployment is still on the increase. During the past three years, the Tamil Nadu Government has sent 384 applications to the Government of India for starting new industries in the State. Out of these, the Government has still not issued Letters of Intent for 123 applications. If these 12 industrial licence applications had been cleared by the Centre, by now we could have provided employment to 50,000 more people in Tamil Nadu. The Tamil Nadu Government is waiting; and is ready to start new industries or render all possible assistance to those wishing to start new industries in the State. The only stumbling block is the inordinate delay in granting clearance by the Government of India. For its part, the State Government is doing everything within its power to speed up the processing of Letters of Intent. Therefore, I request the Government of India to issue these pending 123 Letters of Intent without further delay. Recently, the Government of India has issued revised guidelines for classifying areas as industrially backward. According to the recent Sivaraman Report, 87 districts were declared as backward districts under the new guidelines. I am constrained to point out that not only Tamil Nadu but the entire South has been completely neglected in this regard. Except for one solitary district in Karnataka, no other district in the rest of the South has been included in this list. What is the reason for this blatant discrimination? The Government of India has classified backward areas into three categories - namely, Category A, B and C. Category ‘A’ refers to “No Industry Districts” where the Central capital subsidy would be 25 per cent of the investment, with a ceiling of Rs. 25 lakhs. The reason given by the Government of India for adopting this new yardstick is that many districts in the northern States of India have no industries at all. The Government of India seeks to justify its new policy by citing this as the main reason. Where the northern States of India are concerned, whichever political party has been the ruling party in power at the Centre - has also been the ruling party in those States - all along. If no industries have been started in those northern States all these years, certainly Tamil Nadu or any of the other southern States cannot be blamed for this deplorable state of affairs. If no industries have been developed in so many districts of the northern States, that is entirely due to the gross inefficiency and glaring acts of omission of the governments of those States. Why should Tamil 19

Nadu have to pay the penalty for this gross negligence and maladministration on the part of those north Indian State Governments? Indeed, why should all the four southern States be penalised for no fault of theirs? The Government of India now declares “No Industry Districts” as backward. Previously, the criterion adopted for classifying an area as backward was “Zero Industry Taluks.” I am unable to understand the necessity for changing the earlier guidelines. Tamil Nadu does not have any "No Industry District." This does not necessarily mean that all the districts in Tamil Nadu are industrially well developed. As all the districts of Tamil Nadu are very large, Tamil Nadu has suffered in comparison with other States having much smaller districts. Category ‘B’ refers to taluks where the Central capital subsidy would be 15 per cent with a ceiling of Rs. 15 lakhs. The blocks having investments of more than Rs. 30 crores would be excluded from the list of backward areas. Category ‘C’ taluks would be the nine concessional finance districts in Tamil Nadu, excluding the Category ‘B’ taluks - and they would be eligible for the capital subsidy of 10 per cent, subject to a ceiling of Rs. 10 lakhs. As already mentioned, since most of the districts in Tamil Nadu are extremely large, the State Government has taken up the matter with the Government of India and has requested that only taluks or blocks should be taken as the unit for declaring "No Industry Areas", rather than districts, as the size of a taluk or block is likely to be more or less uniform throughout the country. The decision of the Government of India in this regard is awaited. We hope the Government of India will take a favourable decision in this matter without further delay, or else it will only harden the feeling of the southern States that step-motherly treatment is being meted out to them by the Centre in the area of industrial development. There is the Heavy Vehicles Factory at Avadi. The Tamil Nadu Government has urged the Government of India to set up the planned expansion project of this Factory at Tiruvallur. The proposed expansion project is a factory which will produce modern battle tanks. The Tamil Nadu Government is prepared to extend all possible co-operation if the Centre decided to locate this project at Tiruvallur. The Madras Fertilizers Limited was incorporated in 1966. The naptha required for this plant is supplied by the Madras Refineries Limited, set up in 1965. Today the Madras Fertilizers Limited is operating extremely successfully with a very high margin of profit. The Tamil Nadu Government has been repeatedly urging the Government of India to sanction a Rs. 600 crores expansion project for this plant. We hope the Centre will fulfil this request without further delay. Whenever the Tamil Nadu Government has proposed this scheme for expansion of the Madras Fertilizers Limited, the Centre has cited the shortage of electricity as a reason for turning down the proposal. The Tamil Nadu Government has discovered a new method to overcome this difficulty. It is proposed to generate power in co- 20 operative sugar mills by installing high-pressure boilers and to supply the surplus electricity generated to the Tamil Nadu grid. Two such cogeneration plants will be set-up; one at the Dharmapuri District Co-operative Sugar Mills Ltd., and another at the Kallakurichi Co-operative Sugar Mills Ltd., at an estimated cost of Rs. 900 lakhs each. Since this will be a project for generation of power from “non-conventional sources”, it is expected that the Government of India will come forward to meet the funds required for the project. The Tamil Nadu Cement Corporation has repeatedly been pressing the Government of India to sanction a cement plant at Palayam in Madurai district. This plant will have a capacity of 4 lakh tonnes per annum. This is a project which the Tamil Nadu Government wants to establish by Itself. I emphasise, we have not asked for any Central aid for this project. All that we have requested is the permission of the Government of India to start this project. But the Government of India steadfastly continues to deny even this clearance to the Government of Tamil Nadu. What is the reason behind this strange attitude of the Centre? What is the reason behind this consistent refusal by the Centre to grant sanction for the cement plant at Palayam? There are rumours that it is to please one particular individual: a business magnate, a private cement factory owner, that this sanction is being denied to Tamil Nadu. Is this not a bizarre situation in a democracy, Sir? Which is more important - the welfare of 5 crore people of Tamil Nadu -- or the welfare of one wealthy capitalist, one single individual? I request the Government of India to sanction clearance for the Palayam Cement Plant immediately. When the foundation stone was laid for the commencement of the Salem Steel Project in 1977, it was approved and announced by the Government of India as a full-fledged steel project. However, when the Salem Steel Plant was commissioned in 1981, the whole project suddenly underwent a transformation, and just as Cinderella's coach turned into a pumpkin at the wave of a magical wand by the Fairy Godmother, the promised full-fledged steel project suddenly emerged in the shape of a mere steel rolling mill. In response to the Tamil Nadu Government's repeated demand to implement the Salem Steel Plant as a full-fledged project, the Steel Authority of India Ltd., keeps on giving us the same stock answer - “that the question is under study.” I wonder, when will this study - this endless research come to an end? And when will the Government of India announce its decision in this regard? Sandalwood trees of the finest quality are found in abundance in Tamil Nadu. There is an enormous demand for sandalwood and sandal oil from Tamil Nadu. But the Government of India has imposed a ban on the export of sandalwood from Tamil Nadu. 21

If the export of sandalwood is permitted, the financial resources of Tamil Nadu will be appreciably augmented, and the Government of India will also obtain a lot of foreign exchange. As things stand - the State's financial resources are very limited. On the one hand, the Government of India seeks to further narrow down the State's sources of revenue by trying to appropriate the right to levy several taxes being collected by the State Government. On the other hand, the Government of India bans the export of sandalwood and blocks all avenues whereby the State Government can earn some income through its own natural resources. What justice is there in such a policy? I request the Government of India to forthwith lift the ban on the export of sandalwood. Sir, Tamil Nadu by itself is capable of meeting the entire sandal oil requirements of the whole of India. Yet - in another bid to further narrow down the State's sources of income - the Government of India has permitted the import of synthetic sandalwood oil. Is it fair on the part of the Centre to create a rival market which adversely affects Tamil Nadu's interests? Why go in for artificial diamonds - when we have genuine diamonds right here in the palm of our hand? When Tamil Nadu can supply all the genuine sandalwood oil that India requires, where is the need to import synthetic sandal oil? Tamil Nadu is perennially short of water to meet its irrigation needs. The west flowing rivers of Kerala whose waters just flow into the sea, of no use to anybody, could be diverted so that the river waters could be utilised for irrigation in Tamil Nadu. This is a proposal we have been repeatedly putting forth to the Government of India. Will the Centre ever come forward to implement this project? We understand the Government of India is going to start a second coach factory. The Government of Tamil Nadu has already sent an official letter to the concerned department pressing the Centre to allocate the project to Tamil Nadu. We feel Trichy is the ideal place for this project. However, if that is not feasible, the Centre can expand the Existing Coach Factory at Perambur. I urge the Centre to start a second Atomic Plant in Tamil Nadu; to sanction the expansion of the Ariyalur Cement Plant; and to work out a long term satisfactory plan for the supply of coal to the Tuticorin Thermal Plant, and find permanent solution to this permanent problem. Tamil Nadu has a coast line about 450 miles long. There are many countries in the world, whose entire economy is based upon deep sea fishing. Therefore, the Centre should make good use of the 450 mile long coast line of Tamil Nadu, and envisage and implement a large scale major full-fledged plan for deep sea fishing, if not in the Sixth Five Year Plan then at least in the Seventh Five Year Plan. The distance between Madras and Delhi is 2,540 kilometres. The distance between Tirunelveli and Delhi is 3,000 Kilometres. 22

I beseech the Government of India to think of the plight of a poor man in Tamil Nadu who is compelled to seek justice in a court of law. Even if the need arises - can a poor man from the South even dream of travelling all the way to New Delhi to seek recourse in the highest court in the land - the Supreme Court? Even if he somehow manages to reach Delhi - still there is the language problem. To travel to New Delhi to seek justice in the Supreme Court is not within the reach of the average middle class citizen of India either - not if he happened to live in the South. It is, therefore, essential to establish a Bench of the Supreme Court in Madras - to put justice within the reach of the common man in South India. I also request the Centre to consider setting up a Bench of the Madras High Court at Madurai. I could go on and on in this vein - but I now conclude with these words of Tennyson: “So many worlds, so much to do, So little done, such things to be But there is more than I can see And what I see, I leave unsaid.” Mr. Deputy Chairman, Sir, I do not oppose this Bill. I reiterate that we have no objection to this Bill being passed, provided the States get their fair share, and what is due to them from the Central funds and Central investment. 23

Centre - State Relations: Linking the Ganga & the Cauvery

Apropos of the Finance Bill, on 2.5.1984

24

Centre - State Relations: Linking the Ganga & the Cauvery

Mr. Deputy Chairman Sir - At the outset, I wish to quote a few excerpts from our great departed leader Anna's speech in the Rajya Sabha when he took part in the discussions following the introduction of the Finance Bill in 1966. Anna said: “Whenever we, from this side of the House rise to offer our criticism on any of the measures brought forward by the Government of India - we do so with a kind of hesitation. Because the sincere criticisms offered are, for erroneous reasons, commandeered from the other side of the House as misrepresentations.” Anna goes on to say- “No civilised Government should depend on taxation alone for its welfare measures. A Government if it is to be called a welfare Government, a progressive and modern Government, should not crush the people with taxation, merely because it needs more and more money for expenditure.” The same thought has been expressed by Mr. N.A.Palkhiwala in his own inimitable style in an article which he wrote for the 'Illustrated Weekly of India'. He says: “It is my firm conviction that no nation living today or which has flourished in any past historical epoch would remain on its feet under the giddy rates of direct taxes which prevail today in India. Our people, like any other, fall into three segments: (1) those who would be honest, however heavy the burden; (2) those who would be dishonest, however light the burden; (3) those (and they constitute the overwhelming majority) who are basically not dishonest but the nature of whose response to the Law is conditioned by the quality of the Law. It is our past Legislation (a) if not the first class (b) is preoccupied with the second, and (c) alienates the third" - says Mr. Palkhiwala. At another point - Anna declared in his speech - “since every plan must evoke popular response - if it is to be successful - and since the ultimate objective of planned development is the improvement in the conditions of living of the people the investment on commodity production has to be matched by allocation of adequate resources to those activities which constitute 25

an investment in human resources ..... - so that the common man may feel - that whatever he is paying by way of taxation, he derives benefit from it." Here I wish to lay emphasis on these particular words “allocation of adequate resource to those activities which constitute an investment in human resources.” Can the Government of India honestly proclaim that it has carried out this policy of allotting enough money for social purposes - in respect of human resources? Last year, Tamil Nadu unfortunately found itself in adverse circumstances - due to a prolonged period of drought, unprecedented both in its severity as well as duration. The honourable Finance Minister Shri. Pranab Mukherjee knows very well that the financial resources of a State Government are extremely limited. When a State in the Indian Union is badly hit by unforeseen natural calamities - it is the duty of the Government of India to extend all possible assistance to the beleaguered State Government. The Tamil Nadu State Government formally requested the Government of India for financial assistance - and in the expectation and belief that the anticipated aid would be forthcoming on its own, the Tamil Nadu Government spent Rs. 114.28 crores for drought relief during 1982-83, and 1983-84. The Tamil Nadu Government has only made an application to the Government of India, that the State Government should be reimbursed for the actual expenditure already incurred for drought relief works which have been completed. The State Government has not asked for financial aid for any new projects still to be undertaken under drought relief. The Government of India sent a team to assess the drought situation in the State. The Central study team highly commended the drought relief works carried out by the Tamil Nadu State Government and noted with appreciation that apart from providing immediate relief to the drought stricken people of the State - permanent assets have been created in the State in the form of drinking water sources and irrigation and transport facilities. (Oct. 8, 1983 - HINDU / EXPRESS). Tamil Nadu had barely extricated itself from the suffocating grip of the protracted drought and was endeavouring to restore the economy to normalcy - when the State was ravaged by unusually heavy downpours which created a flood situation and wrought widespread devastation in several districts resulting in heavy damage to property and loss of life. The State Government has asked the Centre to sanction Rs. 128 crores for flood relief. So far the Centre has sanctioned Rs. 41 crores. On its own the State Government has so far spent Rs. 37.54 crores. 26

The Government of India sent a 5-member Central Study Team to assess the flood situation in the State and review the relief works carried out by the State Government - According to the ‘Hindu’, dated Sunday, April 29th -1984 – “The Collectors and other district officials have acted promptly. We are satisfied that whatever should have been done immediately after the floods has been done” the leader of the team Mr. K.G.Paranjpe told newsmen at the conclusion of the team's 4-day visit to the affected areas. Complimenting the State officials on this good work, he said ‘We are happy about the work already done, and we did not hear any complaints from the villagers.’ Since the Central study Team has seen for itself the extent of the damage wrought by floods in the State - the Tamil Nadu Government earnestly hopes that the amount asked for will be sanctioned without further delay by the Government of India. It we study the history of India over the past 100 years we will notice that at regular intervals - not only Tamil Nadu - but the whole of India has been affected by intermittent periods of drought. A study of old almanacs relating to events during the past 100 years will prove that these periods of drought recur at regular intervals. Since this is a known proven fact - it is my request that the Government of India should anticipate these regular periods of drought and chalk out plans so that the Government is prepared to meet the situation when it arises. Similarly - floods occur regularly all over the country. Every year the Ganges - the River Ganga is in spate and causes widespread damage because of floods. So also the river Brahmaputra. Every year a flood situation is created by these 2 Rivers. Whenever this happens - there is a lot of talk about finding a permanent solution to this recurring problem. Then everyone forgets all about it - until the next year - when again floods recur - and again the same remarks are repeated - and yet again the matter is left at that and forgotten. Is it not high time for the Government of India to really do something to solve this permanent problem? Is spending crores of rupees every year on flood relief the only way out? Is this the only solution we can think of? If we calculate the stupendous amounts spent so far since Independence - during the past 37 years - on flood relief operations necessitated by the havoc wrought by these 2 rivers alone - the Ganges and the Brahmaputra - the total adds up to gargantuan dimensions. Instead of regularly incurring this colossal expenditure on flood relief - surely the same gigantic amount could have been better spent and would have been sufficient to implement a permanent solution to this problem? 27

In this context it is vital to seriously consider and expedite a project to link the Ganga with the Cauvery. Indubitably this will involve an expenditure of staggering sums of money. The Government of India could obtain the necessary finance as foreign aid from friendly countries. The linking of the Ganga and the Cauvery will prove beneficial to the whole country in several ways. Not only will it boost the nation's economy - by increasing the production of electricity in the country - not only will it provide irrigation to several thousands, indeed lakhs, of acres of land - but above all- it will foster and nurture a new awareness in the minds of the people that India is one. A scheme to link the Ganga and the Cauvery would be one of the best ways to promote national integration and strengthen national unity. With pardonable pride, I may say that the Chief Minister of Tamil Nadu Dr. M.G.R. has already shown the way to the rest of India - with the active co-operation of the Chief Minister of Andhra Pradesh Mr. N.T. Rama Rao. Breaking through all barriers of red tape - these two Chief Ministers jointly formulated an agreement between the Government of Tamil Nadu and the Government of Andhra Pradesh on 18 April 1983 to implement the Krishna River Water Supply Scheme. This project is a standing monument to inter-State co-operation. The river Krishna has its source in Maharashtra - it flows through Karnataka - and then reaches Andhra Pradesh. Now the waters of the Krishna will also flow into Tamil Nadu - not only will this project provide a lasting solution to the long standing problem of providing adequate drinking water supply to the city of Madras - it will also irrigate several thousand acres of arid, hitherto uncultivable land in the Rayalaseema area of Andhra Pradesh. Exactly a year ago - on the 2nd of May 1983 - the Tamil Nadu Chief Minister Dr. M.G.R. met the Prime Minister Mrs. Indira Gandhi at Delhi - and personally requested the Prime Minister to sanction Rs. 250 crores as grant and Rs. 200 crores as a long term loan from Central funds - to help Tamil Nadu to meet its share of the estimated project cost. The Union Minister for Planning informed the Government of Tamil Nadu that the feasibility of acceding to this request would be thoroughly examined - and that the possibilities for including this scheme under the Plan programme of the Union Planning Commission would also be investigated. We hope the Union Minister for Planning will soon announce a favourable decision in this regard. Out of the total project cost estimated at Rs. 1,907 crores by the time the first stage of the Krishna River Project nears completion - taking into account the probable higher price index at that time - it is calculated that the Tamil Nadu Government will have to incur an expenditure of Rs. 410 crores as its share of the project cost. 28

The Tamil Nadu Government has asked the Government of India for clearance to obtain this amount as a loan from the World Bank. This sanction has not been granted as yet by the Centre. We are unable to understand the reason for this delay. After all, the Tamil Nadu Government has only asked for permission from the Government of India - to obtain this amount as a loan from the World Bank. The Tamil Nadu Government earnestly hopes that this permission will be granted without further delay. As compared to the rest of India - today Tamil Nadu is relatively a haven of industrial peace. Strikes and lock-outs are comparatively minimal in the State. Yet, at present, a lock-out is in force in six textile mills in Tamil Nadu. The Tamil Nadu Government has requested the Centre to take over these six mills. Out of these, with the exception of the B & C Mills in Madras - all the other five are very small mills, employing only 110, or 250, or 700 workers at the most. It should not pose any great difficulty to the Centre to take over the administration of these mills. Only a few months ago the Centre announced its decision to take over 13 sick textile mills in Maharashtra. An erroneous impression should not be fostered in the minds of the people that the Government of India is only too ready to take over sick mills if they happen to be located in North India - but that the same Government of India is indifferent to the plight of mills in a similar state in South India. Therefore, the Tamil Nadu Government renews its plea to the Government of India to take over the six textile mills now under closure in the State. While discussing the Finance Bill - it is relevant to mention the subject of Centre - State relations - which in recent months has become a topic of nation-wide interest on which the nation's politicians, parliamentarians, the public and the press have focussed attention. This subject has a direct bearing on the matter under discussion. With the exception of the appearance of one Non-Congress State Government in 1958 which did not last very long, until 1967 - a single ruling Party governed the whole of India. The same Party which was in power at the Centre was also the ruling Party in the States. Mainly because of this several inherent weaknesses in the Constitution of India went unnoticed. The 1967 elections brought to the fore, the prospect of different political parties being favoured to rule various States of India; and heralded the emergence of Non- Congress governments in several States of India. Since then with regard to Centre - State relations several inadequacies in the Constitution have come to light, and practical experience has indicated the pressing 29

need for effecting certain Constitutional changes - to clearly delineate the respective rights and obligations of the Centre and the States. The Government of India has appointed the Sarkaria Commission to examine Centre - State relations. The Tamil Nadu Government has appointed the Ramprasad Rao Commission for the same purpose. The Tamil Nadu Government proposes to take a decision on the report submitted by the Ramprasad Rao Commission - and in turn submit its recommendations to the Sarkaria Commission. Experts in political economic and legislative matters have more or less arrived at a consensus of opinion, that the Planning Commissions of the Centre and the States should function as autonomous bodies. The degree of financial dependence of the States on the Centre should be reduced to the minimum. The existing financial relationship between the Centre and the States gives the Centre absolute controlling powers. It is the States which mobilise financial resources and collect taxes and send them to the Centre. But it is the Centre which decides the distribution of funds and grants, and even grant of loans to the very same States - which are responsible for mobilising the funds in the first place. Vast resources of revenue are excluded from the distributable pool under the present legislative provision of the Constitution. The State Governments have to implement most of the welfare schemes - but they are rendered ineffective, because they are reduced to a state of penury and absolute dependence upon the Centre. Just now our young friend from the opposite side of the House Mr. Anand Sharma spoke about populist schemes implemented by some State Governments. He said that Central funds were diverted and squandered by certain State Governments in order to introduce certain populist schemes to boost their own popularity. Mr. Anand Sharma did not mention any particular State Government and he did not specify which populist schemes he meant. However, the Tamil Nadu Government has introduced and is implementing the Free Nutritious Noon Meal Scheme which has often been described as a populist measure by Members from the other side of the House. In fact the favourite expression of Members of the ruling party by mentioning the scheme is to refer to it as a populist scheme. I am not going to debate that point now. I do not want to waste the valuable time of the House in arguing over whether the scheme can be described as a populist measure or not. However, since our young friend emphatically stated that Central funds were being diverted and wasted by State Government for their own populist schemes, I wish to make it very clear that so far 30

the Centre has not contributed even one single paisa towards this Noon Meal Scheme. The Tamil Nadu Government has been implementing the Free Noon Meal Scheme at a cost of nearly Rs. 200 (two hundred) crores per annum entirely out of its own limited financial resources. In fact, we have been pressing the Union Finance Minister to include the scheme in the Plan outlay for the State. And we are yet to receive a favourable reply. If not in the present Plan, we hope the Centre would include it at least in the next Annual Plan outlay. It is essential to secure for the States a larger devolution of taxes. The needs of the States are increasing and they far outstrip their actual resources. The funds devolved by the Centre are woefully inadequate to meet the needs of the States. There are certain anomalies in the present system of administration. There is a separate Planning Commission in each State. There is also a Planning Commission at the Centre. Surely the Planning Commission of a particular State would know better how to evolve plans for the development of that particular State? There is a separate Union Minister for Planning and another Union Minister for Finance. The Planning Minister drafts a scheme and sends it for approval to the Finance Minister. The Planning Minister says that a certain amount of money is required to implement the scheme. But the Finance Minister states, that is not possible to allocate the entire amount required. He says only a certain sum of money can be allotted - and asks the Planning Minister to cut down and prune the scheme so that it fits within the limits of the funds that the Finance Minister is prepared to allocate. Because of this existing system - countless schemes are being inordinately delayed. Each year - just for form's sake a minuscule amount is sanctioned by the Centre - which is meaningless in relation to the actual needs of the projects concerned. It is precisely because of this that the Karur - Dindigul Broad Gauge Railway Line Project is being delayed. Every year - the Centre sanctions such a meagre allocation for this project that it amounts to no more than a drop in the ocean - and it is beyond the wildest flight of fancy to even think of completing the project with the funds allotted by the Centre. I urge the Government of India to expedite the completion of the Karur - Dindigul - Tuticorin Broad Gauge Railway Line, as it is not only important to the nation's economy but also strategic to the defence and security of India. I also request the Centre to forthwith expedite the Sethu Samudram Project which again is crucial to India's security. 31

The Planning Commission of a State should formulate the schemes for the State's development. The State Government should also be empowered to utilise the financial resources it mobilises - for the implementation of its schemes. A representative of the Government of India could participate in the discussions and offer guidelines when necessary. This would definitely generate more enthusiasm in the States and accelerate the rate of progress and development of the whole country. In various spheres, there are separate schemes envisaged by the Centre. The States also have their own schemes in the very same spheres. For example - in the field of agriculture - there are certain special schemes of the Government. of Indla. In actual practice, it is the State Governments which implement these Central special schemes. If these schemes are entrusted to the State Governments right from the initial stage - the State Governments could implement these scheme in a much better manner - and more speedily as well. This is a lesson that practical experience has taught us. The Central Government sends a new scheme to a State Government for implementation. The State Government develops some doubts regarding the scheme. To clarify the doubts the State Goverment again consults. By the time the Centre finally conveys its reply or decision - several months passed by - and the time is just wasted with nothing being done. By that time, usually the financial year will be drawing to a close. A specific amount allocated for a particular project has to be spent by the end of the month of March. The State Government is advised to somehow utilise the funds allotted before the 31st of March. This leads to squandering of precious financial resources because of lack of time for proper planning. This again is a lesson we have learnt through practical experience. That is why we suggest that it would prove to be generally more beneficial, if such schemes were entrusted to the State Governments right from the planning stage. There is a separate department for highways at the Centre, Each State has a department for highways as well. The existence of two such parallel departments leads to exercises in sheer futility. I cite the example of the Pamban Bridge. The National Highways Department is responsible for the planning - but it is the engineers of the State Highways Department who are responsible for executing the project, While construction work on the Pamban Bridge was underway - it was interrupted by a natural calamity which caused damage to the work already completed. 32

The contractor who had undertaken the construction called a halt to work on the bridge - and refused to continue until and unless he was recompensed for the financial loss he had incurred. The question arose, as to exactly how much the contractor should be awarded as reimbursement for the loss he had suffered. The National Highways Department directed the Highways Department of the State Government to decide the amount to be paid as compensation. But the State Highways Department was reluctant to commit itself, for fear of getting embroiled in a probable controversy. So the State Department of Highways washed its hands of the responsibility, and once again requested the National Highways Department to decide the compensatory amount. The Central Department throws the ball into the court of the State Department. The State Department flings the ball back into the court of the Central Department. While the Central and the State Departments play volley ball with each other - the Pamban Bridge stands incomplete - desolate, abandoned - with no prospect of the project nearing completion in sight. This is only one classic example of the imbroglio and utter confusion prevailing throughout the country .... with every major scheme in a mess and a muddle, due to the muddle brained system of having parallel departments in practically every sphere, both at the Central and at the State levels. In Madurai District - at Sothupparai near Periyakulam the Tamil Nadu Government wishes to construct a storage dam. The State Government has the constitutional right to build the dam. But the State Government has to first secure the permission of the Government of India, before it can actually proceed with the construction. We are still waiting for Central clearance. So we are unable to build the dam. This is only one among numerous development projects held up in the State, simply because of the delay in obtaining Central clearance. Scarcity of power is a nation wide phenomenon in India. The Government of India is reported to be considering taking up the entire responsibility for power production. There is a genuine doubt in my mind, in relation to this proposal of the Government of India, on which I hope the Centre will shed some light. If the Centre takes up the entire responsibility for production of power - does that guarantee that the Central officials will really be able to increase the output? Who exactly are these Central officers? Are they not deputed to the Centre from the various States of India? 33

In effect - the Government of India would have us be-lieve, that an official working for the State Government is incapable of increasing power generation. But if the same official is transferred to the Centre he is automatically invested with magical powers and suddenly becomes capable of rapidly increasing the production of electricity. This belief of the powers that be at the Centre, defies all logic. The Centre declares there should be an uniform rate of sales tax throughout the country. We do not dispute this policy. But the Centre next proposes to appropriate the right to levy sales tax all to itself. How can the State Governments accept this proposal? The Centre may issue guidelines to the States with regard to rates and methods of taxation. But if the Centre plans to take away the very right of levying taxes from the States -how can the States consent to this total denial of all rights? On the one hand, the Centre threatens to arrogate to itself, the sole right to levy sales tax. On the other hand the Centre also announces, that it is considering taking over not only the production, but the distribution of power as well. One by one - if the States are gradually stripped of even the few powers they possess at present - where will this end? What will be the outcome? The system that the founding fathers of our Constitution had in mind was clearly enunciated by Dr. Ambedkar -.who said that a Federal Constitution means, that the provinces are as sovereign in their field, as the Centre is, in the field which is assigned to it. In conclusion, I wish to remind the Centre, of the words contained in the memorandum submitted to the First Finance Commission, by the Government of West Bengal under the Chief Ministership of Dr. B.C.Roy - "An attempt to build a strong Centre on the foundation of weak States, is like an attempt to build a strong building on the foundation of sand. "

34

Overhauling our Educational System: Stress on Vocational Training Classical Language Status for Tamil Grant for Tamil Research Studies

Discussion on the working of the Ministry of Education, Culture and Social Welfare on 5.5.1984.

35

Overhauling our Educational System: Stress on Vocational Training Classical Language Status for Tamil Grant for Tamil Research Studies

Sir, although there has been a great deal of talk about the crying need to completely restructure the whole system of education in our country, nothing much has really been done about it. What is the situation that is prevalent everywhere in India nowadays? For the most part we find there is absolutely no relation between the education a student receives, and the vocation he later takes up or is forced to take up by circumstances. Graduates who have obtained B.Sc., degrees in chemistry apply for the position of a clerk. B.A., and M.A., degree holders send in applications and wait with crossed fingers hoping to secure at least the job of a bus conductor. The British who ruled India until 37 years ago - needed a vast number of clerks to run their administration. So they evolved a system of education geared to produce competent clerks to meet their needs. We shook off the British yoke and won our national independence. But we have not yet managed to liberate ourselves from the shackles of the educational system evolved by the British in India. On the one hand, there is widespread criticism that standards of education have deteriorated in India. There is a growing feeling that teaching standards have also fallen - that teachers themselves are not up to the mark. On the other hand, there is an almost universal complaint that there is a total lack of discipline among students today. An honest analysis will reveal that the root cause of the general malaise that has afflicted not only most of our student community but indeed is responsible for many 36

social evils and imbalance is that the education taught in this country is mostly aimless. A student joins a degree course in a college. At the advent of his 2nd year in college - grave doubts and misgivings begin to swirl in his mind. He begins to wonder - "What am I studying for? To what end? What will be my fate - my position - after I complete this course?" The future appears bleak - without hope. Even while still studying, the student is gripped by a feeling of despondence - of despair. This in turn leads to restlessness and anger. The desperate need to give vent to their feelings of frustration drives students to conduct agitations to voice their demands. More often than not these agitations invariably take a violent turn. Our entire educational system urgently needs to be re-structured to provide a means of livelihood for the students. The education a student receives - right from the earliest stage - must be aimed at equipping him with the specific knowledge and skills he will require for the particular vocation he will take up when he completes the course he is studying. It is to fulfil this pressing need that the Government of Tamil Nadu has courageously stepped forward to introduce bold, innovative and significant changes in the system of education in the State. The Tamil Nadu Chief Minister Dr. M.G.R. fully compre-hends the seriousness of the students' predicament and the urgency of the need for drastic reform in the educational system. That is why the Tamil Nadu Government is concentrating on introducing technical education and vocational training at all levels of education in the State. Today Tamil Nadu is in the forefront in India in imparting vocational training to students at the Higher Secondary School level. The State Government wishes to proceed much faster in this regard - but is hampered due to paucity of funds. Despite the financial constraints - the Tamil Nadu Chief Minister Dr. M.G.R. is determined to implement the Vocationalisation of education in the State. This year - right from Elementary schools to Secondary and Higher secondary schools - the State Government plans to introduce vocational training at all levels of education on an experimental basis. Our aim is that the moment a student completes his edu-cation - he should be able to find gainful employment com-mensurate with the knowledge he has acquired. Or else he should at least have acquired the necessary technical know- how to start his own business or industry. For this the State Government is prepared 37

to render all assistance as well as security free loans up to the value of to Rs. 10,000/- . When compared with other States - student agitations in Tamil Nadu are relatively minimal. Educational institutions in Tamil Nadu do not remain closed for months at a stretch as in some other States. One reason for this is that the State Government takes immediate action to settle the problems of students and teachers amicably - whenever any such issues arise. Another reason is that students have begun to realise that vocational training provides a guarantee for a safe and secure future. This has helped to instil in them a much needed feeling of security and confidence. Hence they are able to concentrate on their studies with peace of mind. 99% of the students who studied at the various polytechnic institutes in Coimbatore were able to find gainful employment instantly, upon completing their courses. Tamil Nadu is justifiably proud of this achievement. To totally eradicate the nation-wide problem of unem-ployment - vocationalisation of education is a must. Therefore, the Centre should step forward to render all possible aid to the States to implement this scheme successfully. In Tamil Nadu 22% of the students are in the vocational streams in over 50 trades. Vocationalisation in plus two is very popular. A pilot review of the scheme in one revenue district in North Arcot has revealed very encouraging results. An independent review conducted by the District Head-masters' Association revealed that 47% of the vocational students have gone in for higher studies and 49% of the students have been gainfully employed. This is a revelation. If the vocational sector of plus two is brought under a Centrally sponsored scheme - with cent per cent Government of India assistance as it was originally conceived -vocationalisation in Tamil Nadu will receive a much needed boost. With pardonable pride I may say that Tamil Nadu has been a pioneering State in the field of education - and has taken gigantic strides forward in this field - given its limited resources. Tamil Nadu has achieved phenomenal success in enrolment of children in schools. 38

In the age group 6 - 11, we have enrolled more than 95% and in the age group 11 - 14, the enrolment is 61 %. To realise the ultimate objective of 100% coverage - we have been offering incentives such as free midday meals -free books - free slates and uniforms - and free residential accommodation wherever possible. Under the Free nutritious Meal Scheme - about 65 lakh children - in the age group 2 - 10 years are covered. In the year 1984-85, 15.53 lakh more children up to the age of 15 years will also be included. In order to improve the quality of education at the Primary level, the Government of Tamil Nadu took the momentous decision is 1981 - to make nearly one lakh primary school teachers Government servants - with the laudable objective that education should be handled by specialists in the field - namely educationists - and not by Block Development Officers - whose priorities are not the same as ours. Within the past 37 years - a great number of Primary -Secondary - and Higher Secondary schools have been started in the State. In Tamil Nadu - out of a total of 36,000 schools -3,511 are Government High and Higher Secondary schools. But many schools still do not have permanent buildings. Essential facilities such as science laboratories are lacking in many schools due to scarcity of funds. We know the same situation obtains in other States as well. Lack of money for building stands in the way of further successful extension of vocationalisation. To take up the construction and renovation programme of Government High School buildings - a huge amount would be necessary. This cannot be met from the meagre resources of the State. As an eye-opener to the rest of the country - the Tamil Nadu State Government under Dr. M.G.R. implemented the Self-Sufficiency Scheme in a phased manner in 3 years - under which each and every village in the State has been provided with basic amenities such as protected drinking water - link roads - culverts - rural dispensaries, maternity and child welfare centres, etc. Under this scheme the Government has constructed buildings for primary schools in the rural areas. But, for construction of buildings for secondary and higher secondary schools - a minimum amount of Rs. 95 crores at least is required. The State Government simply does not have the funds for this. The State Government approached the Centre for financial aid in this regard. But the Centre was not prepared to finance the construction of school buildings. As early as 1981, the State Government requested the Government of India, Ministry of Finance to at least allot L.I.C. funds as loans for the construction of school buildings. But the Ministry of Finance in its D.O. letter dated 17, Feb. 1981 said it would not be possible. 39

The State Government then pleaded with the Ministry of Finance to at least arrange for loans from Nationalised Banks at differential rates of interest. But even this proposal was rejected by the Government of India, Ministry of Finance. The Union Finance Minister Mr. Pranab Mukherjee, in his letter No. 14(68)/82.CP VIP dt. 16, Sep. 82 addressed to the Tamil Nadu Education Minister, very politely turned down the request with deep regret. Between 1980-81 and 1981-82, within the span of just 2 years the State Government has constructed buildings for 7,134 primary schools and high schools at a cost of Rs. 33 crores. This is lauded as a praiseworthy achievement. But with regard to the construction of buildings for secondary and higher secondary schools - the State Government is helpless and nothing can be done unless assistance from the Central Government is forthcoming. It is our request that the Centre should provide this assistance not only to Tamil Nadu but to all the State Governments. It is up to the Centre to work out the modalities for extending this aid. It is the students now going in for vocational training who will in future be making a significant contribution to the nation through increased productivity. They are going to be the bulwark of the nation's economic progress and prosperity. Does the Government of India expect these students to acquire vocational and technical expertise under the shade of banyan trees or in ashrams like students of yore who were sent to gurukulams in ancient times to learn the shastras? When Nationalised Banks can provide financial assistance for the development of privately owned industries - in the private sector - why should they not provide financial aid for such a noble public cause as education in the national interest? After all the Tamil Nadu Government is not asking for charity. It is only asking for a loan - for which the State Government is prepared to assume full responsibility. In India, several laws have been enacted on paper to afford equal rights to women - in theory. But in practice .... ? Although under the Indian Constitution, women are entitled to many rights - our society is such that it imposes several restraints on them so that women are not able to enjoy those rights in reality - to which they are entitled by law. Thanks to the Tamil Nadu Chief Minister Dr. M.G.R.'s pioneering efforts - The Mother Teresa Women's University recently inaugurated at Kodaikanal - is going to specialise in furthering the advancement of learning - and prosecution of research in studies on Women's Welfare - and provide consultancy and monitory service for any welfare scheme for women. In particular in addition to 8 other departments - the University will have a 9th department for “Status of Women and Advanced Economics” - and a 10th department for “needs of widows and disadvantaged women.” 40

We may safely say that this University meant solely for women and staffed entirely by women is unique and there is not another one like it anywhere else in the world. We welcome the suggestions of the Government of India concerning the role of education in National Integration. We shall do all that is necessary to see that text books are screened effectively so that the theme of National Integration runs right through. At the same time Tamil Nadu wants to go a step further in international integration. The Tamil Nadu Government intends the Mother Teresa Women's University at Kodaikanal to be an international educational institution which will attract women students from all over the world. We hope most earnestly that the Government of India will render all possible assistance to make this women's University one of the major international universities in the World. The demand for more powers for the States is becoming more forceful and vociferous all over the country. But instead of conceding the demand, step by step the Centre is divesting the States of the few powers they already possess. Education - which was Constitutionally a State subject before the 42nd Amendment was taken away from the State list and brought under the Concurrent list by the 42nd Amendment. Several attempts were made earlier but they proved unsuccessful until the 42nd Amendment. In this context I would like to remind the Centre about the clarification provided by Mr. T.T. Krishnamachari in the Constituent Assembly of India on 2.9.1949 - to the effect that - it would be sufficient if the Centre takes only such powers as are needed to co-ordinate the educational activities of the States in: * the field of technical education * in the field of vocational education - and * in the field of scientific research - and to quote Mr. T.T.K.'s own words - “ ... that is about so far as it is safe for the Central Government to go; it would not be wise for any Central Government to go beyond that limit.” “I think that is about the best that we can possibly do, consistent with the idea of having States with a large measure of autonomy for themselves - and the Centre taking up the education of security, defence, and general well-being of the country - leaving other things to the States.” These are Mr. T.T.K.'s own words. The same words serve to aptly reflect the policy and thinking of the A.I.A.D.M.K. 41

Frequently, All India Conferences of Education Ministers from all the States are held in New Delhi. The resolutions adopted at these conferences have been implemented to a major degree only by the Tamil Nadu Government. Though education has been brought into the Concurrent List - the Centre does not allot any additional funds to the States. The Tamil Nadu Government which is in the forefront in several fields, is also in the forefront in the field of education. If education is returned to the State List again - and if the States are given full powers in the field of education - the States will advance much more rapidly in a keen spirit of competition. The Government of India recognises Sanskrit as an ancient classical language and spends vast sums of money for research and development in the interest of preserving our ancient cultural and literary heritage. Tamil is also a very ancient language. In fact Tamil is not only the oldest language but the oldest living ancient classical language in the world today. The Government of India has formulated a yardstick - a list of conditions which form the criteria for recognising a language as a classical language. According to the Government of India - the characteristics of a classical language are 7 in number. The first condition is: (1) It should contain a body of literature and grammar which is ancient. Tamil has a body of literature called the Sangam Anthologies and the grammar called Tolkappiyam - which are assigned to the first few centuries before the birth of Christ even by the most sceptical historians of literature. It is doubtful whether any other language can match Tamil in this regard. Probably only the antiquity of Greek can be compared with the ancientness of Tamil. Out of the 7 conditions set down by the Government of India for a language to be officially recognised as a classical language - Tamil fulfils 6 of the conditions. But the 7th condition is not applicable to Tamil. What is the 7th condition? "That the language is rarely spoken and its text is understood with the help of dictionaries or specialists." Is it only a language which has been totally forgotten by the people that can be accepted as a classical language? Is it only a language which survives with the aid of a few pandits that should be recognised as a classical language? How can this be considered fair or just? What justice is there in this sort of a stricture? 42

Classical languages which satisfy all 7 conditions, including the want of speakers in modern times are Latin and Sanskrit. Whereas Greek, Arabic and Tamil continue to be spoken by millions today. Classical Greek or Arabic or Tamil is different from the modern dialect of Greek or Arabic or Tamil. Hence classical languages are divided into those with continuity and those without continuity. Sanskrit, Latin etc. - belong to the second category i.e., - without continuity. Greek, Arabic and Tamil belong to the 1st category i.e. with continuity. Since the discovery and publication of the Tamil Sangam Classics were late - there was an early erroneous impression that the Dravidian literature is a derivate of Sanskrit. This impression was dispelled as soon as the Tamil Sangam classics were published. The fact that this independent and secular body of literature and grammar had influenced all the Southern Languages and even the Vedic and Classical Sanskrit was established by eminent research Scholars like Gundert - Caldwell - Kitel, Burrow etc. and the influence of the ancient Tamil Sangam literature on Sanskrit has now been argued cogently by George Hart. Recognition of Tamil as a classical language by the Government of India is long overdue. Just as the Government of India has accorded Sanskrit recognition as a classical language it should also accord the same to Tamil. Such recognition will enable this country and the world to appreciate the antiquity of the Tamil language and the great diversity of its literature and add glory to the cultural heritage of the country. The great Tamil poet Bharatidasan has magnificently described the genesis of Tamil in the following exquisite words. Bharatidasan says: When the moon first began its orbit - when the sun first shone forth in all its brilliance - when the skies were first created - when the radiant stars were first born in the skies - when the first cloud formations began to gather _ when the waves in the ocean first began to surge forth that was when our great Tamil language was also born in all its resplendence. We, the Tamilians, were born along with that age-old Tamil language. I have the honour to come from and represent that glorious land of the Tamils - Tamil Nadu. The firm language policy of the Government of Tamil Nadu will be to implement - the 2 language formula which has been consistently enunciated by our great Dravidian leaders Periyar E.V.R. and Anna. lt is the same policy which the Tamil Nadu Chief Minister Dr. M.G.R. has been reiterating time and again. 43

The Government of Tamil Nadu has stated in unmistakable terms that, Tamil and English can serve all our purposes - Tamil as the official language of the State - and English as the link language. Even the most emphatic and ardent protagonists of Hindi - do accept that English can serve admirably as a link between our country and the outside world. Then why plead for Hindi to be the link language here? When English serves to link us with the outside world - it is certainly, capable of rendering the same service inside India as well. English is foreign, some argue. Have we destroyed or given up everything that is foreign? Do we not bring in foreign wheat in foreign ships? Do we not seek foreign aid not only in the form of money - but also in the form of technical expertise? Does a single week pass without some leader or the other - a Minister - or an M.P. or an M.L.A. undertaking a journey to the West or East - to secure whatever foreign aid it is possible to secure? On top of all these things we have given up so many systems peculiarly our own. We are not content with rural economy. We want Trombays and Ennores. And we are not conscious of their being foreign. Only in the matter of language - we pose as ultra nationalists and dub the English language as foreign. (Addition here in Hindi) “Quit India” - we said to the British. The British were able to understand us. Simply because we said "Quit India" in English, they understood us. Had we said that in Hindi they would not have been able to speak Hindi. I am asking you in Hindi not to foist Hindi upon us - Similarly, you should not say that since I know Hindi, I should accept it as a national language. That should not be the policy. There is no justice in such a policy. I am requesting the Government of India, through you, not to foist Hindi upon us. Now, Sir, take for instance the cricket test commentary which is given in the country through AIR and Doordarshan. I am only pointing out that the Hindi language does not have the required vocabulary; it does not contain enough words in the lexicon. Now the Government of India has made it compulsory that the cricket commentary should be broadcast in Hindi as well as in English. Now, Sir, if you listen to the Hindi commentary on a cricket test just for five minutes, and people all over the country follow the international test cricket match commentary with great interest, you will find that 99 per cent of the commentary is in English. They simply have not been able to coin words in Hindi for the usual terms used in cricketing jargon. Now, if you listen to the commentary, you will find that except for the most mundane phrases such as “Wo dowdkar aaya - woh balle baazi kar rahe hai...", "Aur unhone gend phenk di ...” other than that 99% of the commentary 44 is in English. To describe field placements such as slip, gully, mid-off, mid-on or technical terms such as wicket, batting-average, or bowling average or maiden over - there are simply no words in Hindi for these terms. Who is benefiting by this? Is this not an enormous waste of time and money? It may as well be that the whole commentary is done in English. The one thing that the listeners are interested in is the score. And that is the one thing they invariably give in shudh Hindi. It makes the listeners want to cry, to tear their hair in frustration. Sir, I just want to conclude with one reference to the recent historic space flight of Squadron Leader Rakesh Sharma. I beg the Honourable Members not to misconstrue my remarks. I am not trying to belittle this historic achievement in any way .... Everyone knows that the venture was given wide coverage on TV. In particular the conversation between the Prime Minister of India and Squadron Leader Rakesh Sharma was watched by millions of people all over the country. What I am trying to point out is the limitation of the Hindi language. When Squadron Leader Sharma tried to describe the technical details of the space craft and the flight, he had to resort to English words. He simply could not find the terms in Hindi, he did not know the terms; in fact there are no terms in Hindi. Since my first day in the Rajya Sabha, I have been listening to many of the speeches in Hindi by many of the Honourable Members here and I find there is a liberal sprinkling of English words in practically every Hindi speech. When there are no words in the Hindi language to describe a particular event, or a particular article or a particular object the speaker who is using that language has to resort to another language and that language usually turns out to be English. So why not allow English to continue as the Official Link Language? In conclusion - I wish to remind the Government of India of the assurance given by the late Pandit Jawaharlal Nehru. Pandit Nehru has stated that, English would continue as the associate official language indefinitely - as long as the non-Hindi people wanted it. We hope the Government of India will honour this promise made by the late Prime Minister. 45

Situation in Sri Lanka

On a calling attention motion on Sri Lanka on 7.5.1984 46

Situation in Sri Lanka

While speaking about the Sri Lanka Tamils issue - I wish to clarify one point at the outset. Whatever be the foreign policy of the Government of India that is also the policy of the A.I.A.D.M.K. Time and again this has been reiterated by the Tamil Nadu Chief Minister Dr. M.G.R. I also express my gratitude to the Hon. Minister of External Affairs for the statement he has made today in response to this calling attention notice. However today - there is one burning question which is smouldering like a simmering volcano in the heart of every Tamilian. What is India going to do - to safeguard the lives and rights of the Sri Lanka Tamilians - to rescue them from tyrannical oppression - and to see that justice is rendered to them? We all know about the horrifying occurrences that transpired in Sri Lanka in the month of July last year. Not only Sri Lanka Tamils - not only Tamils of Indian origin settled there - but all Indians in Sri Lanka - even pilgrims and tourists from India - were indiscriminately attacked and subjected to ghastly cruelties. Fiendish atrocities defying description were perpetrated on them. Their properties were looted, their factories and business houses were destroyed, their homes were ransacked and set ablaze. Thousands were sadistically butchered in the most brutal, diabolic manner. Hundreds of our Tamil sisters were raped and dishonoured and forced to suffer a fate worse than death. The Sri Lanka Army was in the forefront in committing these heinous crimes against humanity. 47

After a considerable length of time had elapsed - the President of Sri Lanka Mr. Jayawardene, belatedly expressed regret for the appalling incidents that had taken place in his country. At that time we too believed - albeit reluctantly - that Mr. Jayawardene spoke the truth when he said that he had temporarily lost control over the Sri Lanka Army, which, he said, had run berserk. But today - the same Mr. Jayawardene performs a complete volte-face, and loudly proclaims that “even a hundred Indians cannot subjugate Sri Lanka”. We are compelled to assume that it is the encouragement and support provided by some foreign superpowers, that has given the Sri Lanka President the courage to make such statements, which should otherwise be dismissed as sheer bravado. There have been reports in certain sections of the Press that during the past six months or more, the Sri Lankan troops have been receiving intensive training by Israeli Commandos. We have heard that one of our neighbouring countries, in our immediate vicinity, as well as one of the Far Eastern countries have also assisted Sri Lanka by imparting military training to the Sri Lankan Armed Forces. It is no coincidence that all these countries which have of late been lending a helping hand to Sri Lanka - fall within the orbit of the shadow cast by the protective umbrella of one major foreign superpower. We are all well aware of the identity of that superpower. It is with those countries that the Sri Lanka Government we suspect - is seeking to forge a military alliance - under the guise of a friendship pact - and we also suspect that this proposed military arrangement or alignment is directed against India. Time and again, the Indian Government has clearly defined its stand to the Sri Lanka Government in unequivocal terms - which is, that it is India's sincere aim to find a political- not a military solution to the ethnic problem of Sri Lanka. When Mr. Jayawardene initiated the Round Table Conference talks - India welcomed the move to find a political solution to the ethnic problem. But the talks dragged on inconclusively. Then came an abrupt announcement that further talks would be postponed until the month of May. Following this announcement - all of a sudden -- Armed Forces were deployed in strength all over Jaffna - the northern parts of Sri Lanka predominantly populated by Tamilians. The entire area was cordoned off from the outside world. A naval blockade was imposed. Rail, road and telecommunication links have been cut off totally. 48

Once again innocent Tamilians are being methodically shot down and killed by the Sri Lankan Armed Forces. To put it plainly - they are being cold-bloodedly murdered under the guise of stamping out Tamil terrorism. I have here numerous newspaper clippings which substantiate these reports. The recent happenings in Jaffna lead us to believe that the Sri Lanka Government is carrying out a premeditated, carefully planned scheme of genocide - to completely wipe out all traces of the Tamil race in that country. Even those who want to flee the country are not being allowed to leave. They cannot escape by sea because of the Naval blockade. They are not allowed to leave by air either. Every route of escape to safety and freedom has been blocked. The sounds of gunfire in Jaffna can be heard by us in the Southern coastal areas of Tamil Nadu. The heartrending cries of our Sri Lankan Tamil sisters can be heard by us in Rameswaram. We must consider the background of the ethnic conflict in Sri Lanka - which has now escalated to cataclysmic proportions. According to Harold Laski - equality is not identity of treatment but affording equal opportunities for all. Be it a question of securing admission to medical colleges - or job opportunities in Government service - in the Armed Forces - in the Police Force - or whatever - equal opportunities are being systematically denied in every sphere to the Tamil minority in Sri Lanka. It was the Tamils of Sri Lanka who stood in the vanguard in the forefront - during the country's struggle for freedom and made great sacrifices to win for Sri Lanka its independence. Freedom from colonialism should logically bring more fulfillment to the people of a nation. In the case of the indigenous Tamils of Sri Lanka - independence only resulted in their being relegated to the position of second rate citizens. The fate of the several lakhs of Tamils of Indian origin was infinitely worse. They were relegated to the position of third rate citizens. The forefathers of these Tamils were taken to Sri Lanka from India as cheap immigrant labour by the British. These Tamils have been living and working there as labourers in Tea, Coffee, and Rubber plantations for generations - not just for decades - for centuries. It is their labour which accounts for a major part of Sri Lanka's earnings in Foreign exchange. 49

Immediately after achieving independence in 1948 - the very same year a Citizenship Act was enacted by the Government of Sri Lanka - as a result of which at one stroke these Tamils of Indian origin were reduced to a Stateless minority. They were denied the right to vote. They were denied even the primary basic right of citizenship. Until this day - they are Stateless - which means they have no rights at all. Step by step the Tamils of Sri Lanka have been calculatedly put down by successive Sinhala dominated Governments. Normally - any democratic country extends special concessions to its minority communities. But in Sri Lanka today - the entire Tamil population of that country has been totally stripped of all basic human rights. It is difficult - well nigh impossible - to think of a parallel situation to this - existing in the world today in any other country which calls itself a democracy. There is only one God and only one race - the human race. We are firm believers of this doctrine which our great leader Anna - inculcated in us, his followers - and this belief has become indelibly ingrained in our consciousness. We do not recognise or believe in any distinctions or discrimination based upon religion or language or any other such consideration. The decision taken at the last Round Table Conference to confer citizenship on the Stateless Tamils of Indian origin was unanimously accepted by all groups in Sri Lanka - even by the most fanatical hard liners - the Buddhist monks. But later, the Sri Lanka Government reneged on its earlier decision and announced instead that it would conduct a plebiscite with regard to this matter. It is not difficult to guess what the outcome of the plebiscite will be - since the vast majority of the people in Sri Lanka are Sinhalese. Although the Minister said in his statement that the Sri Lankan Minister for National Security said, there would not be a plebiscite. Has such an announcement been made in Sri Lanka? We do not know. Today in Sri Lanka - the Government - the Ruling Party - the Armed Forces - are all entirely dominated by Sinhala fanatics. Against this backdrop instead of waiting further to see how the defenseless pawns are kicked and shuffled around on the chessboard of Sri Lanka politics - it is imperative for India to take speedy steps to protect the lives, properties, and rights of the Sri Lanka Tamils. During the struggle to achieve liberation for Algeria, Pandit Jawaharlal Nehru openly declared his support to the people of Algeria in 1960. This gesture was widely appreciated throughout the world. 50

In the same way - Prime Minister Indira Gandhi has openly expressed her support to the Palestine Liberation Organisation Movement. This again has been warmly welcomed by most of the world. Not only India, but most of the countries in the world have vehemently denounced South Africa's apartheid policy which is an affront to the basic dignity of humankind - and have united with India in boycotting South Africa in all respects. When such is India's foreign policy - are the 68 crore people of India going to stand idly by - while thousands of their Tamil brothers and sisters are being savagely butchedred within hearing distance - within a stone's throw from the Southern most tip of India? Very recently - in a press interview - Mr. Jayawardene is reported to have said that if India does invade Sri Lanka then that would be the 'end of the Tamils' in his country - to quote his own words. As of and until this moment - India has not the remotest intention of invading Sri Lanka. Yet Mr. Jayawardene threatens to annihilate the entire Tamil population of Sri Lanka. Mr. Jayawardene has also stated that his country has the right to forge any sort of alliance with any other foreign power and asks what right India has to question any such pact. Geographically, Sri Lanka happens to be one of India's closest neighbours. If a neighbour living just next door to me, insists upon setting fire to the roof of his own house - I who live in an adjacent house will also be affected by the fire. Naturally I have every right to be concerned about it in the interest of my own safety. It is India's earnest desire that the entire Indian Ocean area should remain a zone of peace. Sri Lanka also professes to have the same desire. Such being the case - if Sri Lanka intends to forge an alliance with a foreign superpower that could prove to be detrimental to India's interests - if such pact poses the threat of danger to India's security - then India has the indisputable right to voice its concern about such an alliance, and is perfectly justified in doing so. India has always adopted a conciliatory attitude towards its neighbouring countries and has made several major concessions in the interest of maintaining peace and friendly relations. India gave away Berubari to Pakistan. We hoped that this gesture of goodwill would evoke similar goodwill from Pakistan. But instead of reciprocating India's friendliness - Pakistan declared war upon India - and until today - displays consistent animosity towards India. 51

In the same way - India parted with Katchatheevu and gifted it away to Sri Lanka. Instead of appreciating India's well meant gesture of friendship - today the Government of Sri Lanka is indulging in anti-Indian propaganda. India's magnanimity and good intentions have gone unrecognised. Therefore I request the Government of India to be less accommodating and adopt a firmer attitude in its relations with other countries in future. The fishermen of Tamil Nadu have been consistently harassed by the Sri Lankan Navy in recent times. Sri Lankan Naval vessels have been intruding into Indian waters and attacking Indian fishermen. The all party delegation led by Tamil Nadu Chief Minister Dr. M.G.R. which met the Prime Minister on Saturday had requested protection for the fisherfolk. We hear from reliable sources that now the Government of India has announced that henceforth - the Indian Navy will provide protection to the fisherfolk of Tamil Nadu when they set out on their fishing expeditions. If this is true - I express my whole hearted gratitude to the Government of India and the Prime Minister Mrs. Indira Gandhi for this timely decision. If such a decision is yet to be taken - I request and plead with the Government of India to speedily arrive at a decision in this regard. The Tamils of Sri Lanka are our brothers and sisters. Whatever action the Government of India may take to see that their rights are restored to them - I appeal to all the Members of the Rajya Sabha to arrive at a consensus to stand solidly behind the Government of India - and unite in co-operating with whatever decision the Prime Minister Mrs. Indira Gandhi may take in this regard. Indeed I made this appeal to everybody in the nation - let us not fight and bicker between ourselves. Let us not fritter away our strength. I wish to remind you of these words of Tennyson - “Deliver not the tasks of might To weakness, neither hide the ray From those, not blind, who wait for day, The sitting girt with doubtful light.” In conclusion I wish to ask the following questions: 1. Does the Government of India propose to raise the issue of atrocities on Tamils in the Jaffna region at the U.N. Human Rights Commission? 2. My second question - what action does the Government of India propose to take - to see that the rights of the Tamils of Indian origin in Sri Lanka are restored to them? 3. Thirdly - many of the refugees from Sri Lanka who escaped to India have been staying with friends or relatives. Those who have no such contacts have been staying in refugee camps. 52

Many of the refugees who had been staying with friends or relatives - found they were no longer welcome there. They requested admission to the refugee camps. At first the Government of India granted such permission in its letters dated 29.2.1984 and 30.3.1984 to the Tamil Nadu Government. However in its letter dated 23.4.1984, the Government of India, Ministry of Rehabilitation informed the Government of Tamil Nadu that it had consulted the Ministry of External Affairs and felt it would not be advisable to admit such Sri Lanka refugees to camps as it would lead to more and more similar requests from those staying outside the camps. We wish to point out that refugees from Sri Lanka cannot hope to stay indefinitely in the homes of others - nor can those families be expected to support the refugees for a prolonged period of time. Therefore since such helpless refugees have nowhere to go the Government of Tamil Nadu requests the Government of India to grant permission for such refugees to be admitted to camps. In anticipation of further requests of a similar nature - we also request the Government of India to sanction permission and Central aid to establish more such refugee camps. And now Sir - to substantiate whatever I have said so far I have a bundle of photographs here with me depicting the atrocities committed by the Sri Lanka Armed Forces on the Tamils of that country. I would like to place them on the table. 53

Constitutional Status of Jammu & Kashmir

Calling attention motion on recent developments in Jammu & Kashmir, 26.7.1984 54

Constitutional Status of Jammu & Kashmir

At the outset I wish to make one point very clear. It is my own strong conviction as well as the staunch belief and precept of the A.I.A.D.M.K. - that such a constitutional provision should not be allowed to exist in a democracy whereby, a democratically elected government which has won the popular mandate of the people, can be dismissed and thrown out of office with a mere flourish of a pen on paper - with one single stroke of a pen - whereby the signature of one individual has the power to render null and void - the mandate - the sanction and authority to govern a State, which has been bestowed by several millions of people. Jammu & Kashmir is one of the most sensitive border States of India. It is an indisputable fact that various foreign powers have been consistently trying to infiltrate and utilise this State to achieve their own nefarious ends - detrimental to the interest of India. We are faced with the threat of destabilisation both in the North-East and the North-West where secessionist movements are being carried on - which amount practically to unending armed insurgency. Jammu & Kashmir is one such region. There can be no disagreement on the imperative need for particularly strong and tight security in this region. Anyone who has the welfare of India at heart will agree that we cannot afford any laxity in the matter of security and vigilance in this State. We must review some of the recent happenings in Jammu & Kashmir and the explanations that were given in relation to these incidents. Last year on August 15, during the Independence Day parade at the main stadium in Srinagar - when the then Chief Minister Dr. Farooq Abdullah was taking the salute, a crude bomb was hurled and went off in the midst of the stadium. One day earlier, on August 14th - Pakistan's Independence Day - there were scenes of jubilation in various parts of Kashmir. The Pakistani national flag was hoisted on Indian Soil. 55

But when our own Indian National Independence day was being observed the next day - bombs were hurled to disrupt the celebrations. Next, there was also an attempt to blow up a transmission tower on top of Srinagar's Hari Parbat using high explosives. Again in October there was the infamous incident in Srinagar, when the one-day cricket match between India and the West Indies was nearly abandoned as agitating hordes broke through the fencing and pelted the Indian players with stones. These militant elements raised slogans of “Pakistan Zindabad” and attacked our Indian cricketers. On that day our Indian players remarked “Are we in India or Pakistan? We really wonder whether we are playing in our own country.” Our cricketers could not go beyond making such mild comments. But when such disturbing incidents occur in succession, what is one to make of them? Are we not led to believe that anti-national elements were given a free hand to assert their presence and militancy in Kashmir? What was the action taken with regard to these incidents? The State Government took a very ambient, leisurely view of these matters. No timely action was taken. No proper investigation was conducted. Finally the Union Home Minister was compelled to begin an independent inquiry into the incidents. When Maqbool Butt the secessionist and terrorist was hanged for murder in Tihar Jail last February 11, he was glorified as a martyr in Kashmir by various groups, who led demonstrations protesting against his execution, and forced the closure of shops and offices. Now I personally, am not trying to insinuate that Dr. Farooq Abdullah has any covert or overt links with Pakistan - but it is very interesting to note that similar protests and demonstrations were held in Pakistan at the same time. All these happenings are a clear indicaion of the extent to which anti-national elements; secessionists, terrorists and' extremists have been allowed to flourish and gain strength in Kashmir in recent times. So far 7 Indian Airlines planes and 2 Air India planes have been involved in hijackings. Five of them have been hijacked to Lahore in Pakistan. Out of these, in 3 incidents it is noteworthy that the hijackers boarded the plane at Srinagar airport in Kashmir. There were serious charges that secessionists and terrorists were being given combat training in several camps in Kashmir. To these accusations the then Chief 56

Minister of Jammu & Kashmir Dr. Farooq Abdullah replied, that it was only religious training and could not be interfered with or stopped. Afghan rebels are being given training in arms in Pakistan. We all know the identity of the foreign powers which are supplying the weapons and the finances for such training. When the Government of Afghanistan makes this charge what is the explanation that the Pakistan Government offers with regard to this? The same explanation that Farooq Abdullah preferred that it is only religious training. Does this not provide food for thought? With reference to the recent occurrences in Punjab - vast quantities of weapons and highly sophisticated arms were discovered which had been stockpiled by terrorists involved in the incidents there. There was another serious charge levelled by the Centre that the weapons were smuggled from Pakistan through Kashmir to reach Punjab. What was Dr. Farooq Abdullah's reaction to this extremely grave charge? Dr. Farooq Abdullah replied that it was not the responsibility of the State Government. He contended that the State Police was responsible only for maintaining law and order in the State - and could not be expected to keep a watch over smuggling activities. He insisted that it was essentially the Central Government's responsibility to maintain vigilance with regard to smuggling of weapons through the State of Jammu & Kashmir. Dr. Farooq Abdullah has been making repeated declarations about his undiluted patriotism, and his unshaken fervent belief in national unity and stability. Personally, I do not doubt Dr. Farooq Abdullah's loyalty to the nation, to India. But does not his reply to the Centre contradict his own claim about his patriotism? How are we to reconcile his assertion of unshaken loyalty to India with his reply to the Central Government? When the Centre discloses that weapons have been smuggled from a foreign country into India through the State of Jammu & Kashmir - the then Chief Minister responds with the contention that it is not the job of the State Government to keep a watch over such activities. What conclusion would one logically deduce from an answer such as this? Is this the reply expected from a patriotic Indian citizen holding the responsible office of Chief Minister of a sensitive border State? I would request everyone concerned to carefully consider the sequence of events in Jammu & Kashmir during the past one year - and the explanations that were given in relation to those events by the persons responsible for the administration of the State. Because I say this, it does not mean that we support the dismissal of the Farooq Abdullah Government. 57

The A.I.A.D.M.K. Government in Tamil Nadu was dismissed in 1980. Whatever feelings we experienced then, when our State Government was dismissed, we feel the same when we consider the fate of the Farooq Abdullah Government in Jammu & Kashmir. But we must also bear in mind certain other important points in this connection. With reference to the change effected in the Jammu & Kashmir State Government many political parties in the country are denouncing it as a “murder of democracy”. My question is this: How many of these parties have the moral right to do so? One of the parties which is crying itself hoarse about this murder of democracy is the D.M.K. It is the leader of the same D.M.K. who played a key role in bringing about the dismissal of the A.I.A.D.M.K. Government in Tamil Nadu in 1980. The D.M.K. leader camped in New Delhi for several days exclusively for this purpose. He persuaded those at the Centre to dismiss the A.I.A.D.M.K. Government. The very next day after the dismissal was announced, the D.M.K. leader returned to Madras triumphantly. The next morning, when he landed at Meenambakkam Airport in Madras he was accorded a rousing, tremendous reception and hailed as a conquering hero by his partymen. He was garlanded profusely. For what? For bringing about the dismissal of the A.I.A.D.M.K. Government, a Government democratically elected with the overwhelming support of the people. But the very same D.M.K. leader today denounces the change in the Jammu & Kashmir State Government as a murder of democracy. Is this not the greatest irony, the biggest, bitterest joke of the 20th century? The A.I.A.D.M.K. firmly believes in the principle that any democratically elected Government should be allowed to function for its full period. This is our firm policy. At the same time the A.I.A.D.M.K. also maintains that any activity which leads to the disintegration of the country or endangers the security and unity of the nation should not be permitted - not only in a sensitive border State - but in any State in the Indian Union. Another party which condemns this so-called murder of democracy is the Janata Party. The Janata Party, I presume, is a national party. At least that is what we were led to believe until recently. I have a great deal of respect and regard for the Janata Party leaders. 58

But let us take a look at Karnataka. It is the Janata Party which is in power in that State. The Janata Government in Karnataka has decided to accept in toto - the recommendations of the Sarojini Mahishi Committee’s report on job reservation opportunities in public sector undertakings. The recommendations essentially boil down to two dangerously disruptive demands - namely - that in public sector industrial and commercial undertakings in Karnataka - 80% of jobs should be reserved exclusively for Kannadigas - and secondly - the remaining 20% jobs should be given only to those who know the Kannada language. Both demands are dangerously chauvinistic and parochial - containing every element guaranteed to undermine Indian unity and destroy the common rights of Indian citizenship. Yet the Janata Party Government in Karnataka has accepted these recommendations in toto. This is all the more amazing since the Janata party claims to be an all-India party and therefore answerable to the people living in the different States of the Indian Union. If all States were to follow this principle what would happen? The Indian Union would cease to be one country - but get reduced to different countries. Today, when the Farooq Abdullah government is dismissed in Jammu & Kashmir under the provisions of the Constitution of Jammu and Kashmir - the Janata Party denounces this as a gross violation of democracy. Yet when the same Janata Party came to power at the Centre in 1977 - did it not dismiss several non-Janata State Governments, making use of Article 356 of the Constitution of India? Arguments may be advanced, differentiating between the merits of each case. But the plain unvarnished truth is that when it had the power to do so - the Janata Party did not hesitate to make use of that power, to do exactly what it is protesting against so vehemently today. Next, let us consider the Telugu Desam Party, which is most vociferous in denouncing this murder of democracy. On his return from the United States of America, the Telugu Desam leader, Andhra Chief Minister N.T. Rama Rao has gone on record saying that India has made no progress at all in the 37 years after Independence. The Telugu Desam leader is full of praise and is all adulation for Yankee enterprise and Yankee culture. 59

He has gone to the extent of saying that the American roads are more beautiful than the bedrooms of Indian houses. Yet Mr. N.T. Rama Rao the leader of the Telugu Desam Party tries to project himself as a patriot and a national leader. One can say that one's State, or one's community or the poor and underprivileged sections of the country have not progressed sufficiently, but how can one say that the country as a whole has not progressed at all? It should be borne in mind that in 1947 the population of India was 30 crores. Today in 1984, it is 75 crores. In the 37 years since Independence India's population has more than doubled itself. Despite the severe economical restraints - inspite of having to shoulder the massive burden of caring for, feeding and housing such a vast population - nearly one-sixth of the entire human race in the world today - yet, India has emerged as a colossus among developing countries. Today India is considered a major force to reckon with, respected even by the world's super powers. India has taken gigantic strides forward in the fields of industry - energy - science and technology. Despite our enormous handicaps, still India has succeeded in establishing itself as one among the 10 nuclear countries in the world. We have sent a scientific team to Antarctica. We have sent an Indian into space. India has several magnificent achievements to her credit. How can anybody say India has made no progress at all? Unfortunately, the Telugu Desam Chief Minister does not seem to regard all this as progress. Does the leader of the Telugu Desam Party, who so openly declares that he is ashamed of his own country - have any moral right to speak about the murder of democracy in this country? Has he not murdered the image of India in the eyes of the world? Now Mr. N.T. Rama Rao has gone to the U.S.A. again for heart surgery. We extend our best wishes to him for a total recovery and for a long life. Before his departure, while referring to the daily allowance in foreign exchange permitted to him by the Government of India - Mr. N.T. Rama Rao angrily asked - “Am I a coolie to be given such a paltry amount as daily allowance?” Is this sort of attitude democratic? I have mentioned these issues only in order to make one point. 60

Amongst the various political parties which are raising a hue and cry about the murder of democracy in Jammu & Kashmir, and claim to be interested in national unity and the welfare of India - whether it be the D.M.K., the Janata - or the Telugu Desam - these parties should first do some soul searching themselves - and others should also give deep thought to the same question - as to whether these parties can truly claim to be national or democratic in character and outlook. I would like to remind them that people who live in glass houses should not throw stones. It has been announced that a session of the State Legislative Assembly of Jammu & Kashmir will be convened very shortly - and an opportunity will be given to both groups of the National Conference - to prove on the floor of the House which group has a real majority and is constitutionally entitled to form the Government. Meanwhile - the main issue has yet to be resolved - as to which is the real National Conference - and whether the defectors have voting rights or not. Dr. Farooq Abdullah's Government has been far from ideal. I am not holding any brief for Dr. Farooq Abdullah. However I do strongly submit that instead of allowing a government based on defections to administer Jammu & Kashmir - it would be better to place the State under Governor's Rule - until such time as the Centre decides fresh elections may be held. In conclusion - I wish to point out that so long as such a provision which deals with dissolution of a State Assembly or dismissal of a State Government is retained whether it be the Constitution of India or the Constitution of Jammu & Kashmir it is bound to be used again and again by the Central Government - irrespective of which party is in power at the Centre. Given certain circumstances, no Central Government can resist the temptation to make use of this provision in the Constitution to suit its own ends. The Congress-I Party has made use of Article 356 to dismiss non-Congress-I State Governments. The Janata Party has also made use of it to dismiss non-Janata State Governments. As mentioned earlier, we ourselves, the A.I.A.D.M.K. have been victims of this provision in the Constitution. The dismissal of the Farooq Abdullah Government in Jammu & Kashmir under the provisions of its separate Constitution is nothing new. It is not the first, nor is it going to be the last such instance in Indian history after Independence _ as long as such a Constitutional provision is allowed to remain. Therefore - if we really want to prevent the recurrence of such undesirable events again - the one and only way is to abolish - to scrap - to completely do way with Article 356 of the Constitution. There is no other way. Finally - I now pose 2 Questions to the Hon. Minister for Home Affairs - 1. Will the Centre consider placing Jammu & Kashmir under Governor's rule? 61

2. Why delay Jammu & Kashmir being integrated with the rest of the Indian Union and why not bring it under the purview of the Constitution of India, - in conformity with all the other States of the Indian Union? 62

Industrialisation of Tamil Nadu, State Autonomy in Education

During the debate on the Appropriation Bill for 1984-85 on 9.8.1984 63

Industrialisation of Tamil Nadu State Autonomy in Education

Although this Appropriation Bill seeking supplementary grants from the Consolidated Fund of India, for the financial year 1984-85, is in respect of numerous services and departments, the limited time allotted for discussion does not permit one to go into detail regarding all of these services and departments. Therefore I shall confine my remarks to only a few specific points. First of all - I wish to draw the attention of the Government of India to the functioning of textile mills in the country. Not only in Tamil Nadu, but in many other States including Gujarat, several textile mills have remained closed over a period of not just weeks or months, but years. The workers or labourers cannot be blamed for the closure of the mills. The fault lies squarely with the proprietors of the mills and their mismanagement which has resulted in the mills being shut down. In Tamil Nadu the B & C Mills in Madras is under closure. Since 1982, the Coimbatore Padma Mill; the Tiruppur Tamil Nadu Spinning Mill; the Tiruppur S.R.C. Mill; the Coimbatore Janardhana Mill; and the Pudukottai Kaveri Spinning Mill have all been shut down. The Tamil Nadu State Government has written to the Government of India time and again, repeatedly urging the Centre to take over and reopen these six sick mills. But no action has been taken by the Centre in this respect so far. At the same time, 13 sick textile mills in Maharashtra have been taken over by the Centre, through the National Textile Corporation of India. Why does the Centre not display the same concern with regard to the sick textile mills in Tamil Nadu? With the exception of the B & C Mills, all the other 5 mills are small mills. 64

The National Textile Corporation could very easily take over the administration of these mills. Why does the Centre not pay any heed to these repeated requests? Once again, I urge the Centre to take over the six sick mills in Tamil Nadu, including the B & C Mills, as well as the Anglo French Textile Mill in Pondicherry, which is also closed since a very long time. I request the Government of India to take immediate action to re-open these mills and provide employment and relief to thousands of suffering mill workers and their starving families. Next - the Tamil Nadu State Government had drafted a Bill seeking to afford more protection to workers whereby an unjustly dismissed worker could straightaway move the courts for justice. The Tamil Nadu State Government drafted this Bill and sent it to the Centre for the assent of the President of India, in 1981 This Bill is still pending clearance by the President. In labour disputes, under the existing laws, very often it is impossible to reach a settlement, because some industrialists simply refuse to turn up for talks. Therefore the Tamil Nadu State Government proposed to enact a legislation whereby summoning powers would be given to the labour officers to serve summons on the concerned industrialists, thereby making it mandatory for the industrialists to appear for discussions. This Bill was also drafted by the Tamil Nadu State Government and sent to the Centre for the President's assent. Until today, the State Government is yet to receive the President's sanction for this legislation. It is my urgent request on behalf of the people of Tamil Nadu and the State Government - that these two laws which seek to safeguard the rights of labourers and afford them greater protection, and which are definitely in the larger interest, should be granted sanction by the President of India without further delay. Throughout last year and the two years preceding it, Tamil Nadu suffered in the grip of severe protracted drought. There was acute scarcity of even drinking water in the State. Time and again the Tamil Nadu State Government was reduced to the level of having to implore and supplicate the Karnataka State Government to release water from the Cauvery. Despite all our pleadings, because adequate Cauvery River water was not released from Karnataka, Tamil Nadu was adversely affected on several fronts. Agricultural production was badly hit. The State's hydro-electric power stations came to a standstill. Because of this power generation was severely affected, and consequentially industrial production as a whole suffered in the State. Talks between the State Government of Tamil Nadu and Karnataka to settle the Cauvery River water dispute have dragged on and on inconclusively. 65

Yet even while the talks are in progress, the Karnataka State Government has proceeded to build several new dams and reservoirs. Ironically this year, because of unusually heavy downpours in Karnataka, all its dams and reservoirs are overflowing, and even though Tamil Nadu has not made any request, the Karnataka State Government has voluntarily opted to release large volumes of Cauvery water to Tamil Nadu, to prevent damage due to flooding and breaching of dams in Karnataka. According to the Cauvery Fact Finding Commission, in the year 1971-72, the Karnataka State Government utilised 176.82 TMC ft. of Cauvery River water and 6.825 lakh acres of land were under irrigation. But even after 1972, 9 big storage dams were built in Karnataka, and 7 more reservoirs are in the process of construction. After 1971-72, the Karnataka State Covernment has been utilising an additional 255 TMC ft. of Cauvery water and has brought an additional 19.878 lakh acres under irrigation. Because of this, the Mettur Dam in Tamil Nadu which should have received 280 TMC ft. of Cauvery water has received only a drastically reduced volume of 55 TMC ft. Tamil Nadu has been deprived of its rightful share of 280 TMC ft. and has received only 55 TMC ft. instead. These figures clearly indicate the extent to which Tamil Nadu's interests have been grievously affected, Tamil Nadu will not raise any objection to any number of storage dams or reservoirs being built in Karnataka, so long as Tamil Nadu's interests are not adversely affected as a result. But when Tamil Nadu is deprived of its legitimate share of Cauvery water, and as a consequence when Trichy and Thanjavur Districts are totally affected, we cannot remain silent spectators. Thanjavur is called the “Granary of Tamil Nadu.” We cannot afford to let that granary become dry, barren wasteland. Therefore we request the Centre to find a settlement to this vexatious problem which has plagued the State of Tamil Nadu for too long. In respect of the implementation of the Krishna River Water Supply Project jointly agreed upon by the State Government of Tamil Nadu and Andhra Pradesh, and which is intended to supply 12 TMC ft. of water to Madras City and permanently solve the drinking water problem of the citizens of Madras, there are some minor hurdles which are holding up the project and which can be easily cleared by the Centre. Phase I of the Krishna Water Supply Project to Madras City involves the digging of a canal from the Tamil Nadu border to the Poondi Reservoir. This in turn 66

involves the acquisition of 437.61 acres of land, of which 27.72 hectares are reported to be forest lands. Even out of these 27.72 hectares, except for an extent of 9.83 hectares of forest lands in Nayapakkam village, the other areas are only non-forest waste lands and they do not come under the Forest Conservation Act. Several letters have been addressed by the Tamil Nadu State Government to the Government of India for the Centre’s approval to deserve or denotify these lands. But the Government of India informed the Tamil Nadu State Government that in order to have an overall picture of the loss of forests, the details of forest lands required for the Project in Andhra Pradesh are also needed. The Andhra Pradesh Government is implementing its Telugu Ganga Project with a view to irrigating the hitherto arid barren lands of the Rayalaseema region. But in so far as the Tamil Nadu State Government is concerned, we are interested in the Krishna Water Supply Project only as a means to procure 12 TMC ft. of drinking water every year for the citizens of Madras city. Our only concern is to see that this project is completed as speedily as possible because supply of drinking water to Madras city is a perennial problem and in so far as Tamil nadu is concerned, the extent of forest lands involved is only a measly 9.83 hectares in Nayapakkam village, Chengalpattu district. The clearance of the Government of India is awaited. Should a project of such magnitude which will bring succour and relief to millions of inhabitants of Madras city be held up only because clearance is withheld by the Centre for a paltry 9.83 hectares of forest lands? The Chief Minister of Tamil Nadu has also addressed the Prime Minister to use her good offices in getting the approval of the Government of India for denotification of the 9.83 hectares of forest lands. The Prime Minister herself inaugurated this project which is a standing monument to inter-State co-operation and sets a precedent worthy of emulation for all other States in India to follow. If this project is held up due to other reasons, the Centre itself should question the State Governments of Tamil Nadu and Andhra Pradesh as to why this project is being delayed, but if the Centre itself is responsible for the delay, how is this fair or just to the people living in the two States of Tamil Nadu and Andhra Pradesh? In Periyakulam taluk of Madurai district, the Tamil Nadu State Government plans to implement the Sothuparai Reservoir Scheme which contemplates the formation of a reservoir with a capacity of 100 M.C. ft. across the River Varagha Nadhi. 67

This scheme aims to irrigate an extent of 1000 acres of new dry land besides bridging a gap of 67 acres of wet land and stabilising 1825 acres of wet land. This scheme has been approved by the State Government for Rs. 791 lakhs. Since the Sothuparai Reservoir Scheme has been declared as a minor scheme by the C.W.C. its concurrence is not required. Again, the implementation of this scheme is held up for want of forest clearance. All that is required is for the Government of India, Ministry of Agriculture and Co- operation to accord its permission under the Forest Conservation Act. 1980 for the diversion of 20.96 acres of forest lands for the proposed Sothuparai Reservoir Scheme. The State Government of Tamil Nadu has already written several times to the Government of India, Ministry of Agriculture and Co-operation in this connection. Their reply is still awaited. Here again we have another instance of a scheme which will boost rice production and provide irrigation to a total extent of almost 3,000 acres of wet land, being held up for want of clearance of a mere 20.96 acres of forest land. I request the Government of India not to hold up projects of such immense magnitude and benefit to the people of the country for such trifling reasons, and to sanction the necessary clearance for the aforementioned projects without further delay. Since 1967, the Centre has not encouraged the growth of major industry in Tamil Nadu. I am not ascribing any political motives to this, but only pointing out a stark truth. After 1967 the Centre has not located any major heavy industrial plant in Tamil Nadu. At least now I hope the Government of India will take step to remedy this injustice to Tamil Nadu in the sphere of industrial development. The Government of India proposes to set up a second Railway Coach Factory. Tamil Nadu which already houses the first coach factory at Perambur, was the first among all the States which have staked their claims for the second factory. Rail India Technical and Economic Services Limited has been entrusted with the selection of a site. Officials of RITES have visited sites in various States. Very recently officials of RITES visited Tiruchi in Tamil Nadu and declared themselves fully satisfied with the facilities available there. About 250 hectares of Government land is available near Tiruchi and it has all the potential for development. A satellite township called Navalpattu on 400 acres has already come up here and the Housing Board plans to acquire another 1000 acres. The Housing Board will be able to fully meet the housing needs of the employees of the proposed coach factory. 68

The Golden Rock Railway Workshop’s modernisation has been cleared, and there are facilities to manufacture under carriages for coaches. There are over 300 ancillaries in and around Tiruchi. In short, there cannot be a better location for the proposed coach factory. Therefore, I request the Government of India to locate its second railway coach Factory at Tiruchi in Tamil Nadu. With reference to the Tuticorin Thermal Power Station, the Chief Minister of Tamil Nadu has already written to the Union Energy Minister, seeking the Centre's permission to import 5 lakh tonnes of coal, since coal shortfall has forced the authorities to use the vastly more expensive furnace oil to maintain generation. The Tamil Nadu State Government has already pointed out in detail the constraints and consequent delays in transporting indigenous coal which has necessitated the present use of furnace oil. The State Government suggests only a one-time import of 5 lakh tonnes of coal to build a buffer stock, to enable the thermal station to operate at its full capacity until such time as delayed arrivals of indigenous coal supplies are received and transportation is regulated. It has been pointed out by the State Government that if the deficit in indigenous arrivals is to be made up by burning furnace oil, the TNEB (Tamil Nadu Electricity Board) will have to spend about Rs. 4.5 crores a month. The State Government has argued that the 5 lakh tonnes of imported coal will cost Rs. 43 crores - a sum that will buy the requisite furnace oil for 10 months. But for the same amount, the imported coal stock will be good enough to last 25 months. The saving in foreign exchange is estimated at Rs. 68 crores. Therefore, I request the Centre to grant permission to the Tamil Nadu State Government to import 5 lakh tonnes of coal immediately. I also request the Centre to expedite the implementation of the Sethusamudram Project without further delay. Finally - with regard to education - the A.I.A.D.M.K. has always taken the stand that education should be in the State List of subjects. Before the 42nd amendment to the Constitution, education was in the State List. Education was transferred from the State List to the Concurrent List during the Emergency. Even in such small countries like the United Kingdom, with an Unitary Constitution, informed opinion is against centralised control in fields like Education. It is interesting to read the views of C.Northcote Parkinson in “The Law of Delay” especially in the Chapter “Principalities and Powers.” 69

“What no one out of bedlam could propose is a system by which an educational policy agreed upon at Edinburgh has to be debated again in London. That way lies madness, as must be obvious to anyone of even average intelligence. Our administration is cumbersome enough as it is. To add to it costly complexity, would be tantamount to suicide.” If this is the view prevailing in a small country like the U.K. - it is all the more unwise to talk of retaining education in the Concurrent List in such a vast country like India with a Federal Constitution, when the founding fathers of the Constitution of India, with their combined knowledge and wisdom, had originally rightly placed Education under the State List. Today a situation has been created wherein it seems that not content with having brought Education into the Concurrent List, gradually, step by step, the Centre is arrogating more and more powers to itself through which education will finally end up in the Central List of subjects. Now a comprehensive legislation to reorganise the management of educational institutions including Colleges and Universities has been enacted, whereby State Governors are vested with more powers to appoint Vice-Chancellors without being guided by the advice of the Chief Ministers. In the wake of recent developments in the Calcutta University of West Bengal and Sri Venkateswara University of Andhra Pradesh - this particular legislation appears to be politically motivated. It further curbs the powers of the States and this will only harm higher education. It is true that the Governors of respective States are the Chancellors of the Universities in those States. But it is also true that in 9 cases out of 10, the Governors are in no way connected with the States they are assigned to, and consequently they know very little about those States. Such being the case, surely the Chief Ministers and the Ministers of the State Governments can logically be expected to know better than the Governors, which persons are most suitable and qualified to be appointed Vice- Chancellors of the Universities in those States? With regard to the functioning of Universities, no matter what transpires therein, where are questions raised in relation to those Universities? The questions are raised in the Legislative Assemblies of the States concerned. It is the State Government which is answerable to the people of the State, and has to give explanations in the State Legislature. When such is the case, if Governors are empowered to appoint Vice-Chancellors at their own discretion and pleasure, not only does it amount to depriving the State Governments of their rightful powers, but problems are bound to arise, which the State Governments will not be able .to solve. Therefore, the only acceptable procedure is that the Governor should necessarily appoint Vice-Chancellors only 70 after consulting the Chief Ministers of the respective States, and in deference to their views. 71

Plight of Handloom Weavers Country- wide

'Special mention' speech on need to enact suitable legislation reserving certain varieties of cloth, 23.8.1984 72

Plight of Handloom Weavers Country-wide

Through you, sir, I wish to draw the attention of the Government of India, Ministry of Commerce, Department of Textiles, to a matter of urgent public importance, concerning the plight of millions of handloom weavers all over the country. The Government of India statistics reveal that crores of people depend on the 30.5 lakh handlooms in India for their livelihood. Handloom weavers in India, at present, suffer for want of continuous jobs and regular income, and they are unable to extricate themselves from the clutches of poverty. A situation of accumulation of handloom stocks has resulted, on account of certain imbalances in the textile policy of the Government of India. One of the main reasons for heavy stagnation of hand loom goods is that the powerlooms, flouting the Government laws, produce goods on a large scale and sell them in the market at a cheaper rate. The powerloom goods are labelled as handloom goods and sold both in the domestic and foreign markets. powerloom goods are exported under the label of handloom goods. To protect the handloom industry and to encourage millions of workers engaged in this profession, as early as 1953, Rajaji, the then Prime Minister of the Madras Presidency moved a resolution which was unanimously adopted in the State Assembly. The resolution urged the Central Government to reserve certain specific varieties of cloth like sarees and bordered dhoties exclusively for the handloom industry. This went unheeded by the Centre. Again, in 1968, the then Chief Minister of Tamil Nadu, Anna reiterated the same demand by adopting a similar resolution. This again was unheeded by the Centre. Again, when Dr. M.G.R. became the Chief Minister of Tamil Nadu, he reiterated the same demand before the then Prime Minister Shri. Morarji Desai who also turned a deaf ear to this request. 73

In 1980, Dr. M.G.R. impressed upon the Prime Minister Shrimati Indira Gandhi the need to reserve certain items exclusively for the handloom industry. During the last Budget session, the Union Industries Minister had announced that a suitable legislation reserving certain items to be produced exclusively by the handloom sector would be brought on the Statute Book shortly. However, despite the Union Minister's announcement, such a legislation is yet to be enacted. The most important and justifiable and legitimate demand of the handloom sector is that powerlooms should not be permitted to weave cloth of more than 36 inches width. The Tamil Nadu Handloom Weavers Co-operative Society Ltd., has already submitted a memorandum to the Hon. Prime Minister Shrimati Indira Gandhi. One of the main demands included therein is that all lungis - palayacot varieties with bi-colour yarns - Madras checks - Bleeding Madras - real Madras handkerchiefs etc., should be reserved for the handloom industry, and a statutory ban should be imposed on both powerloom mills and the powerloom sector, preventing the manufacture of such items, except, ofcourse, with the provision that they can do so only when they do not exceed 36 inches. Sir, in Tamil Nadu, the State Government purchases handloom goods worth about Rs. 25 crores. Similarly, in situations of stagnation like this, the Central Government should also come to the rescue of the handloom weavers by issuing instructions to all the Central Departments, Defence Department, the Posts and Telegraphs Department to purchase their requirements from the Apex Weavers Co- operative Societies. And the Apex Weavers Co-operative Societies should be exempted from participating in the tenders for supply of goods. I appeal to the Central Government to expedite this legislation reserving certain items specifically for the handloom sector. Certain vested interests are engaged in intensive lobbying to prevent such a law being enacted. But, I submit that the welfare of millions of handloom weavers is more important than the prosperity of a few hundred mill-owners. Therefore, I appeal to the Central Government to take a humanitarian view and expedite the passage of this Bill. 74

Iniquities of the Dowry System

Debate on the Dowry Prohibition Bill, 23.8.1984 75

Iniquities of the Dowry System

Mr. Vice Chairman, I wish to make a few remarks in connection with the Dowry Prohibition Bill. As early as in 1950, the State Government of Bihar enacted the Bihar Dowry Restraint Act of 1950. In 1958, the Andhra Pradesh State Government enacted the Andhra Pradesh Dowry Prohibition act of 1958. These Acts were enacted with the sole purpose of eradicating the practice of the evil system of dowry in the respective States. In 1959, the first Dowry Prohibition Bill of 1959 with the main object of eradicating the evils of the dowry system, was introduced by the Government of India in the Lok Sabha. This was the Parent Bill of the subsequent Dowry Prohibition Act of 1961 which was passed by both the Houses of Parliament. Twenty five years have elapsed since the introduction of the first Parent Bill in the Lok Sabha in 1959. Yet, dowry deaths are on the increase. Almost daily in the newspapers we see reports of deaths due to so called "accidental" stove bursts which are anything but accidental. Almost always the persons involved in these tragic incidents are young married women who are done to death in a cold-blooded, calculated, pre-meditated manner- all for the sake of dowry or because of lack of it. Therefore, it is evident that more stringent measures and draconian laws are called for to stamp out this murderous dowry system which has already claimed so many innocent lives, and reduced to ashes innumerable young girls in the flower of womanhood, and has mercilessly crushed countless young blossoms which should have been nurtured and cherished instead. In countries like America, Japan, Australia, there are Family Courts which are functioning very well. In India, apart from the Family Courts, Special Courts should also be set up to deal exclusively with dowry cases. This is because dowry is a widespread social problem peculiar to our country. The Family Courts will have to handle cases dealing with property issues, divorce cases, cases dealing with judicial 76

separation, claims to legitimacy and so on and so forth. If the dowry cases are clubbed with these other cases in the Family Courts, once again the sheer volume and number of cases, will considerably delay the judicial process. In dowry cases, it is imperative that justice should be rendered swiftly with all possible speed. For this, separate courts for dowry cases are a must. Women affected by the dowry problem should be given free legal aid. Complaints regarding dowry should be entertained whenever they are made, at any point of time. In certain cases when women have tried to make complaints with regard to harassment they have been questioned, “You left your husband's home five years ago. Why are you com-plaining now?” This sort of questioning should not be allowed because in many cases, although a woman may be forced to leave her husband's home because of the dowry problem, she may wait for some years in the hope that her husband might change his mind and take her back. Therefore, this should also be taken into consideration. Legislation should be passed that persons convicted for any offence under the provisions of the Dowry Prohibition Act, should automatically be disqualified for election to Parliament or State Legislatures or even local bodies such as Panchayat Boards. Such convicted persons should also be disqualified for employment in Government service at any level. Declaration by Government Servants against giving or taking dowry should be made compulsory under law. Incentives should be offered for intercaste marriages. All marriages must be compulsorily registered just as births and deaths are registered. People can have religious ceremonies as per their choice. Dowry Prohibition Officers should be appointed. They should have the same powers as Police Officers. The punishment provided for in the present Amendment as it exists is insufficient. Another Amendment has been suggested extending the term of imprisonment from two to five years or two to seven years and a fine extending up to Rupees ten thousand or five times the amount of the dowry. But still I say this is insufficient, because the punishment hardly fits a crime of such magnitude, when the demanding or extortion of dowry results in such grave consequences as the death of the bride and the ruination of whole families in their efforts to satisfy dowry demands. For a woman trapped in such a situation marriage is tantamount to life imprisonment which more often than not ends in her death. Therefore, I submit that offenders should not be let off lightly. Punishment should fit the crime. Death sentence or life imprisonment should be awarded as maximum penalty. Offenders should not be let out on bail. This should be declared a non- bailable offence. 77

Amending Taxation Laws; Tax Evasions and Cine Artistes

Debate on Taxation Laws (Amendment) Bill, 27.8.1984 78

Amending Taxation Laws; Tax Evasions and Cine Artistes

Mr. Deputy Chairman, Sir, this Bill is really a very extensive document, almost boundless in its sweep and range. Although the Hon. Minister of Finance has stated that these Amendments are intended mainly to streamline procedures to avoid inconvenience to tax-payers and remove certain anomalies in these enactments, the very presentation of the Bill is anomalous, in that it incorporates as many as 84 clauses with the addition of any number of sub-clauses. As it is, our tax laws are so complicated that they are beyond the comprehension of the layman. The average educated citizen of this country with a reasonable intelligence quotient, cannot even dare to contemplate the idea of assessing and filing his own income-tax returns. The services of an auditor or a chartered accountant are indispensable. By making the taxation laws so convoluted, the Government of India has already seen to it that chartered accountants are a flourishing breed in India. Now by adding to the already existing complexity, by introducing the numerous Amendments proposed in this Bill, the confusion has been compounded, and the Government of India has ensured the continued prosperity of the chartered accountants in the country, and has earned their undying gratitude. Sir, the great Roman philosopher, Seneca, said that; “It is not because things are difficult that we do not dare; it is because we do not dare that things are difficult.” But Seneca who lived from 4 B.C. to A.D. 65 could not have foreseen the maze of involuted taxation laws which the Government of India would create 20 centuries later, when he made this profound observation in the 1st century. Seneca himself, were he alive today, would not advise any layman to attempt to solve the intricate tangle of present day Indian taxation laws without expert professional guidance and assistance. Some of the measures being introduced in this Bill are very welcome indeed. 79

I refer to Clause 50, which seeks to amend section 273 A of the Income-Tax Act. Sub-clause (a) seeks to insert a new Explanation 2 to subsection (1) to provide that; where any books of account, other documents, money, bullion, jewellery or other valuable articles or things belonging to a person are seized under section 132, and within fifteen days of such seizure, the person makes a full and true disclosure of his income to the Commissioner, such person shall, for the purposes of clause (b) of the said sub-section, be deemed to have made, prior to the detection by the Income-Tax Officer of the concealment of particulars of income, or of the inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, a disclosure of such particulars. As I have stated earlier, this new Amendment is to be welcomed. But I respectfully submit that the Amendment as it stands is incomplete. First of all, the time allowed to the assessee to make a voluntary disclosure is inadequate. Instead of 15 days' time, the assessee should be given three months, or at the very least, one month, to make a full and true disclosure. Persons conversant with the technicalities of auditing of accounts, will agree that such a laborious procedure, involving voluminous paper work, will require a minimum of three months time, if the assessee is to make a full and true disclosure of income and assets. Secondly, this particular Amendment should be expanded to include the provision, that once the disclosure is made, the Commissioner must complete the assessment of the case on the basis of disclosure, without further harassment of the assessee, and the assessment should also be completed within three months from the date of disclosure. Next, I refer to clause 47, which seeks to amend section 263 of the Income-Tax Act, relating to revision of orders prejudicial to revenue. Sir, sub-clause (b) seeks to substitute sub-section (2) of Section 263 by a new sub- section. Under the existing provisions, a Commissioner is debarred from revising an order of reassessment made under Section 147 of the Income-Tax Act. The sub- section also provides that no order of revision can be made by the Commissioner after the expiry of two years from the date of the order sought to be revised. Under the substituted sub-section, it will be permissible for the Commissioner to revise even an order of re-assessment made under Section 147 of the Act. Further, the time limit of two years for the purposes of making an order under this section, shall be reckoned from the end of the financial year in which the order sought to be revised was made by the assessing Officer. This new provision simply does not make sense. Under Section 147, any such re-assessment is made only after getting the approval of the Commissioner. 80

When such is the case, after the Commissioner himself has given his seal of approval to the re-assessment order, where is the question of the Commissioner again re-opening the case? In the first place, it is the Commissioner who approved the order of re- assessment. Then, how can the Commissioner again be permitted to revise the order. In effect, this means that the Government of India is giving the Commissioner legal sanction to have second thoughts and that too at his leisure - about a case that has been closed. It also means that the Government of India, through this legislation is wielding a big stick to threaten, brow-beat, harass and intimidate income-tax assessees. This can work two ways. It can be applied in the opposite direction as well. In the case of certain individuals whom the Government wants to favour, concessions can be awarded through this piece of legislation. It follows that once the Commissioner is empowered to revise an order of re-assessment, the revision can be either upwards or downwards. Therefore, since this particular sub-clause so patently lends itself to implementation as an instrument of misuse of authority, I strongly submit that this sub-clause should be revoked. Next, I refer to clause 54, which seeks to amend section 5 of the Wealth-Tax Act relating to exemptions in respect of certain assets. Item (ii) of sub-clause (a) seeks to amend clause (iii) of sub-section (1). Under the existing provisions, an assessee being a person of Indian origin who was ordinarily residing in a foreign country, and who, on leaving such country, has returned to India with the intention of permanently residing in India, is entitled to exemption for seven years in respect of moneys and value of assets brought by him into India, and the value of the assets acquired by him out of such moneys. The proposed Amendment seeks to extend the aforesaid exemption to Indian citizens. While wholeheartedly welcoming this new proposal, I submit that it should be further amended to exempt the income arising out of such assets from income-tax also for the same period of seven years. It has been stated by the Hon. Minister of Finance in the Statement of Objects and Reasons on page 31 of the Bill, that certain Amendments have been included in the Bill to “counteract tax avoidance and tax evasion." To the best of my knowledge, the Government of India is actually getting Rs. 4,000 crores by way of direct taxes. Another Rs. 5,000 crores that should accrue to the Government of India is lost annually because of tax evasion. What action has the Government initiated, what steps have been taken by the Government of India, to stop this stupendous evasion of tax payment? Much publicity is given by the Government of India to the Income-Tax raids conducted on film-artistes. A deliberate impression is sought to be created that only 81 film stars are the culprits when it comes to tax evasion and hoarding of black money. The Government tries to foster a false image of very conscientiously trying to unearth black money and counteract tax evasion, by giving enormous publicity to the income-tax raids on film personalities. But if one cares to examine the details, it can clearly be seen that these raids conducted on film artistes yield very meagre returns, which hardly amount to a drop in the ocean of tax evasion. I have here with me a statement that was laid on the Table of the House on the 7th August, 1984. This statement, referred to in reply to part (a) of the Starred Question No. 226 in the Rajya Sabha, contains the names of 104 film personalities against whom income-tax demands exceeding Rs. 1 lakh were outstanding during the last three years. In its eagerness to condemn film stars, the Government of India, Ministry of Finance, which issued the statement, has not even bothered to take note of the fact that among the names mentioned in the list, many names are those of film producers or film directors who are not actors, but has lumped all the names together under the common nomenclature "film stars". However, this is not the point I seek to highlight. If the demands outstanding in column 5 of the statement are added up, the sum total of the demands outstanding as on the 31st of March, 1984, comes only to Rs. 5,90,30,000 that is, roughly only Rs. 5.9 crores. But the total amount of tax evasion is Rs. 5,000 crores. Out of this, by the Government's own admission, the tax evasion by leading film personalities accounts for only Rs. 5.9 crores, which is but an infinitesimal fraction of the grand total. Yet, so much adverse publicity is given to these film personalities. What about the remaining Rs. 4,994 crores? Who is responsible for the massive tax evasion? Has the Government of India cared to disclose this in Parliament? Has the Government of India, Ministry of Finance, revealed the names of those who have been cheating and defrauding the Government of Rs. 4,994 crores through tax avoidance and tax evasion? No. The real tax evaders are the big companies, the large industrial houses. In the year 1979- 80, out of 101 top-most companies only 23 companies paid tax. Seventy-eight companies paid no tax at all. In the year 1981-82, out of 76 highly profitable companies, 42 companies did not pay any tax at all. The Government of India knows about this only too well. But the Government has done nothing about this colossal tax evasion. Has the Government of India ever disclosed these details in Parliament? Have they ever revealed the names of these delinquent tax dodgers in Parliament? Have they given them all-India publicity by making a statement about them in Parliament? No. The answer is a resounding "No". They have never done it. Yet, they do not hesitate to reveal the names of cinema actors and actresses who owe only relatively minor amounts in tax arrears. The Government publicises their names as though they are the worst of criminals. In the statement already referred to, they have even included the names of those film personalities who have cleared their tax arrears and who have no demands outstanding as on 31.3.1983 and 31.3.1984. In the list, the Government has included 82 the name of the Chief Minister of Tamil Nadu, Dr. M.G.R. although he has paid his tax arrears in 1982 and has no demands outstanding as on 31.3.1983 and 31.3.1984. The Government of India refuses to reveal the names of those industrialists who have been amassing wealth to the tune of crores of rupees and have never paid a rupee by way of taxes. But the Government of India has no hesitation in needlessly dragging in Dr. M.G.R.'s name in a statement issued in Parliament on 7th August, 1984, which clearly shows that he has settled his tax dues two years before, and has no demands outstanding for the last two years. The Government of India makes frequent pronouncements about dispelling economic disparities. Among the large industrial houses in the topmost bracket today - when the British left India the wealth of these industrial houses was Rs. 25 crores - their wealth is Rs. 250 crores at present. Many of them are neither paying any income-tax nor any wealth-tax. Their children would not be paying any estate duty. If the total loss to the Government of India through all these years is computed, the sum total would be of staggering proportions. How will economic disparity disappear if such a state of affairs is allowed to exist in the country? Until today, there is no record of the Government having arrested or raided or having initiated legal proceedings against these tax evaders, who have defrauded the nation of incalculable sums of money, which, when computed, would run into thousands upon thousands of crores over several decades. Individual members belonging to large industrial houses show in their accounts that their wealth is steadily decreasing over the years. Are we expected to believe this? People who have amassed huge fortunes and accumulated wealth around Rs. 2,000 crores and more, manage to manipulate things so that they wriggle out of the tax net. They pay no income-tax, no wealth-tax, no estate duty. The Government of India allows the really large fishes to escape from the tax net. The huge whales and the sharks are allowed to go scot-free. But the same tax net inextricably enmeshes and ensnares the pathetically small fishes. Persons who earn their livelihood by performing genuine service to the nation and hard work are forced to pay income-tax, and they are the ones who are harassed and hounded by the Income-Tax Department. So much so that their lives become a living hell. Where cinema artistes are concerned how many people care to analyse the fact or realise the truth that their earning span is limited to only a few years? So much adverse damaging publicity is given to film stars - so many myths are built around them - that the harsh realities of their existence are clouded over by deliberately nurtured wrong impressions. 83

Is there any guaranteed income for a cinema artiste? None at all. There are no rules or regulations that guarantee a steady income in the cinema industry. There is not even the assurance of a minimum wage. In Government service, if a person qualifies as an IAS Officer, he is assured of a steady job and a regular salary, and he has the security of assured employment until the age of retirement after which he is entitled to receive a pension and provident fund upon retirement. He has something to fall back upon. In the cinema industry there are no guarantees or safeguards for anything. Out of the thousands of eager aspirants to stardom, how many are really successful? How many reach the top income bracket? Only a handful. And even in these cases there is no guarantee as to how long the period of success will last. Everything depends on that most elusive and unreliable factor called luck. A very few persons may continue to earn for a long period, but in many cases the earning span of a film artiste may be limited to just two years or three years. Their income depends on their popularity with the masses, and popularity is a very ephemeral, transient thing. It is here today, gone tomorrow. No one can predict how or when this may happen. There have been several cases of cinema stars who faded out after just one or two years of success. It should be borne in mind that the income such a person manages to earn within the short span of those two years, has to last him or her for the rest of his or her life-time. Most of these persons are not qualified to enter any other kind of service. They have no other means of earning a livelihood. When cinema artistes lose their popularity and grow old, nobody comes forward to support them. The Government of India which squeezes the life-blood out of such artistes in their hey-day, does not come to their rescue in their old age, or when they fall upon hard times, after their earning span is over. Many of the senior Members in this House who have seen Hindi films in their youth, will certainly remember the famous dancer Cuckoo, who was a rage in the early days of the Indian talkies. Cuckoo was the highest paid actress of her time. In those days, when even the topmost actress was paid Rs. 2,500 for playing the female lead in an entire film, Cuckoo was paid Rs. 10,000 just for a single dance sequence in a film. But all too soon her glory faded. Audience tastes changed. Fresh new faces arrived on the scene, and inevitably, after a brief spell of dizzy success, Cuckoo was consigned to oblivion. Her last years were truly miserable. She lived in a dismal one-room apartment, which was really only a shed, a hovel, in one of the slum areas of Bombay. She was reduced to absolute penury. She literally had to starve. In addition to all this suffering, she was stricken by cancer. 84

Her sufferings exceeded all descriptions. In her last days, it was Mr. Sunil Dutt and the late Mrs. Nargis Dutt, who was an Hon'ble Member of this House, who discovered Cuckoo's pathetic condition. The Dutts had her admitted in the hospital and paid for her medical treatment, but it was too late. Just a few years ago, Cuckoo died, lonely, forgotten, unwept, unhonoured and unsung. There was no one to even claim the body or arrange for the funeral. I can give you many more such examples, some of which I have seen with my own eyes... I myself, during my tenure in films saw the sudden rise and fall of many such personalities. I also saw how they were hounded and harassed by the Income- Tax authorities during their all too brief spell of success, and even long after they had ceased to earn any income. But I do not want to take the valuable time of the House by narrating any more such details. I think the example of Cuckoo will suffice to make my pomt. It is a myth that blackmoney is hoarded only by those in the cinema industry. BIack money is generated and circulated not by a handful of actors or actresses but by wealthy capitalists and smugglers. Many well-known, notorious smugglers openly declare how much money they have given to which political parties and which politicians. There are politicians who, in public, touch the feet of smugglers and pay obeisance to them. Why do they do it? Because they need money for elections. Smugglers have the money, and they are willing to donate liberally to politicians in exchange for favours. The money provided by smugglers to finance elections is black money. Therefore if the evil of black money is to be rooted out, one of the important steps towards the achievement of this goal is to enact the necessary legislation whereby the entire election expenses will be borne by the Government through the Election Commission. With these words, l support the Bill, but with the few reservations I have mentioned.

Sir, on a point of order. The Hon. Member should not make remarks about a field of work, of which he knows nothing. It is absolutely wrong to say that people in the film industry work for only two hours or four hours. What does the Hon. Member know? I have worked for 16 years in the film industry. I have worked for 24 hours round the clock, six shifts a day. So, he should not pass such remarks. We have worked under the hot sun with bare feet on blazing rock. We worked in rains. Our work is no less easier than that of any labourer who pulls carts, lays bricks and breaks stones. He should not pass a remark about a field of work, of which he knows nothing. 85

Land Acquisition Act and Harijan Welfare Schemes

Debate on the Land Acquisition (Amendment) Bill, 28.8.1984 86

Land Acquisition Act and Harijan Welfare Schemes

Madam, Vice-Chairman, the Land Acquisition (Amendment) Bill, 1984, seeks to amend the principal Act, namely, the Land Acquisition Act, 1894, i.e., Central Act 1 of 1894. I am aware that the subject matter of the legislation falls under entry 42 of the Concurrent List of the 7th schedule of the Constitution, namely, “requisitioning and acquisition of property”. Thus, both the Central and State Governments have the power to legislate on this subject. The principal Act, namely, the Land Acquisition Act of 1894 is a pre-constitutional law. The power to acquire any land belonging to a private person for a public purpose by the Government is well recognised, and such a right of the Government is accepted under the constitutions of all countries. The counterpart to the Law of Eminent Domain of America, or the Law of Compensation of England, is the Law of Land Acquisition and Compensation of India. Like the Land Clauses Consolidation Act, 1845, of England, the principal statute in India is the Land Acquisition Act, 1894, which forms the present Act and is the basis of all Central and State laws relating to compulsory acquisition and compensation payable. It is well recognised that the sovereign power of a State has adequate authority to command and appropriate for itself lands situated within its jurisdiction, provided it is for purposes of some public utility. The famous maxim “SALUS POPULI EST SUPREMA LEX” which means the welfare of the people is the paramount law, is the corner stone of the law of land acquisition. In other words, public necessity is greater than private necessity. With the growing importance of progressive industrialisation of the country, and the welfare measures taken by the State, it becomes necessary for the State to acquire lands belonging to private persons for public purposes. To suit the growing needs of the State Governments, and the law being a law made in 1894, many local Amendments have been made to this Act by the State Legislatures. 87

It is true that when any land is acquired, even for a public purpose, because it belongs to a private person, compensation should be paid for the compulsory acquisition. Our experience is that many land acquisition proceedings undertaken by the State Government in respect of many welfare measures, could not be pushed through speedily, however laudable the public purpose might be, because of the stay granted by the Courts. The cardinal rule is, no doubt, that there should be compensation for acquisition. 'Article 31 of the Constitution of India, which confers the Fundamental Right to hold property, and provides that no such property shall be acquired without paying the holder an amount by way of compensation has been omitted (by the Constitutional 44th Amendment Act, 1978). Now the right to property is only a statutory right, and no longer a fundamental right under Part III of the Constitution. Article 300-A of the Constitution provides, that no person shall be deprived of this property, save by authority of law. However, our experience is, that even after the right to hold property ceased to be a fundamental right, still the law of acquisition, namely, the Land Acquisition Act, when implemented by the State, even while acquiring lands for the purpose of providing shelters to Harijans who are homeless, or for sinking a public well in a Harijan colony or for constructing tenements for slum dwellers, the State is confronted with serious difficulties, and such welfare measures are unnecessarily delayed, because of litigants misusing and prolonging the judicial process. I may state here that the Tamil Nadu Acquisition of Land for Harijan Welfare Schemes Act, 1978, has been enacted in Tamil Nadu with the laudable object of acquiring lands for the Harijan Welfare Schemes. The Harijan Welfare Schemes under the Act, include the provision of house-sites for Harijans, for constructing extending or improving any dwellings or houses for Harijans or providing any burial or cremation grounds, or for providing any other basic amenity for the benefit of Harijans. The Act vests the State Government with power to acquire lands for these purposes and also to provide a machinery for determining the amount of payment by way of compensation, on the pattern delineated in the Land Acquisition Act, except for certain deviations which have been provided, to enable the determination of the amount of compensation. It has been clearly provided in the Act, that the Land Acquisition Act shall cease to apply, in respect of any acquisition of land for Harijan welfare schemes. I am constrained to say that unfortunately, in spite of the clear provision made in the Act, that the Land Acquisition Act will not apply, and in spite of the objectives of the Act being laudable, the Madras High Court has struck down the Act, on the ground that it violated Article 14 of the Constitution, in the sense that the provisions made therein, are not the same as in the Land Acquisition Act. It may not be the intention of the legislature that all acquisition of land, for any purpose, can be only under the Land Acquisition Act. For any urgent and important purpose, there seems to be no legal bar or constitutional infirmity, either for the Parliament or State Legislature, to undertake a legislation providing for acquisition of land, with certain modifications from the Land Acquisition Act. 88

Otherwise, we would be driven to the conclusion, that only the pre- constitutional law of 1894 should continue to govern all the land acquisitions to be made by the Government, even in the wake of industrial progress and social welfare schemes, which the Centre and the States are bound to implement urgently. Not only has our Law providing for acquisition of land for Harijan Welfare Schemes been struck down but even the acquisition provisions in the Tamil Nadu Slum Areas (Improvement and Clearance) Act, 1971, for improving and clearance of any slum areas in the State have been struck down by the High Court, following the earlier judgement of the Madras High Court. In this context, I wish to refer to the Directive principle enshrined in Article 46 of the Constitution, providing that the State shall promote with special care, the education and economic interest of the weaker sections of the people, and in particular, of the Scheduled Castes and Scheduled Tribes, and shall protect them from social injustice and all forms of exploitation. It has been specifically declared in our Act, that it is a law which seeks to give effect to the policy of the State, towards securing the principles laid down in part IV and in Article 46 of the Constitution. But unfortunately, notwithstanding this declaration, the State law providing for Acquisition of land for Harijan Welfare Scheme has been struck down. Although, the judgement of the Madras high Court has been taken on appeal to the Supreme Court, and the same is still pending before the Supreme Court, yet, I am referring to this only to emphasise the point that even in carrying out welfare measures intended to benefit Harijans, the State Government is confronted with serious legal impediments, and as a result, the implementation of the welfare measures gets delayed, and the proceedings are stalled. If any notification under section 4(1) of the Land Acquisition Act is issued for acquiring some site, to provide for a burning ghat or public well in any Harijan colony, and even if the State Government is satisfied that it is a long felt need of the public, and such a scheme should be urgently implemented, and the usual procedure of conducting section 5(A) enquiry is to be dispensed with, and a declaration to that effect is made, it is common knowledge that any land owner may go to the Court, and obtain an injunction or stay, thereby restraining the State Government from proceeding further with the Land Acquisition. Any suit or writ filed in the Court, thus takes time for final disposal, and once stay is granted, it is very unlikely that the stay is vacated. Not only is the aim of the State Government not fulfilled immediately, but if ultimately on any technical ground, the preliminary 4(1) notification is set aside by the Court, the State Government is put under the legal obligation to issue the 4(1) notification again, to remedy the defect or technical irregularities. If such a notification under section 4(1) of the Land Acquisition Act is issued, then during the interregnum, the market value of the land would have gone up, and only the enhanced marked value as on the date of the revised 4(1) notification has to be paid to the land owner, thereby increasing the cost of acquisition for the State Government. In turn, this increases the cost of the schemes 89 also. These procedural wrangles definitely put a great strain on the limited finances of the State Government. It is for us to think of ways and means, as to how best the provisions of the Land Acquisition Act can be amended. Further, under the Land Acquisition Act under section 17(4), it is open to the State Government to dispense with 5A enquiry, in cases where the State Government is satisfied, that the provisions of section 5(A) for conducting an enquiry should not apply, and the Government can make a declaration to that effect. In such cases, immediately after the 4(1) notification, a declaration under section 6 can be made, at any time after the publication of 4(1) notification. In some cases where the State Government is satisfied that the welfare measures and schemes are to be implemented urgently, the 5(A) enquiry is dispensed with, with a view to take possession of the land and execute the work speedily. But even here, our experience has been that many land holders rush to the Court and stall the proceedings on the grounds that the Government has not presented a convincing argument in regard to the urgency of the measure or on some ground or other and obtain a stay. Here again, the land acquisition proceedings come to a standstill, and the immediate welfare measures planned by the State Government cannot be implemented, even by invoking the urgency provisions. As such, it becomes necessary to provide, that in cases where the State Government decides that the urgency provisions are to be invoked, the decision of the State Government should be final and the same shall not be questioned on the ground that there is no real urgency. In other words, the question whether there is any real urgency or not should be left to be decided by the State Government and to their subjective satisfaction on the materials available before them. The Courts should sit in judgement in regard to the sufficiency of the materials or otherwise, in regard to the invoking of urgency provisions, except in cases where there is arbitrary exercise of power on the part of the Government, or where the power exercised is malafide. I would plead for the Act being amended on these grounds. It may be stated that under the proviso to section 6, the declaration under section 6 has to be made, within three years from the date of publication of 4(1) notification. But it has been our usual experience that a land owner or a person having an interest in the land, goes to the Court immediately after the publication of 4(1) notification and obtains a stay, and consequently, the declaration cannot be published within the time-limit stipulated under the Act. As the Tamil Nadu State Government has experienced considerable difficulty, the State Government has brought forward the Land Acquisition Amendment Act, 1980 (Tamil Nadu Act of 1980) and has also given effect to it from 20th January 1967, by adding an Explanation to the first proviso to section 6. The said explanation specifically provides that in computing the period of three years for the purpose of publishing the declaration after the 4(1) notification, any period during which any action to be taken in pursuance of this notification issued under sub-section (1) of section 4, is held up on account of the stay or injunction by order of a Court shall be excluded. 90

So, even as early as 1980, the State Government felt the need for this amendment, and brought forward the amending Act for this purpose. These facts would show that the very object of the Land Acquisition Act, is to recognise and affirm the sovereign power of the State Government, to acquire any private land for a public purpose. The Act and the Amendments now proposed should enable the State Governments to acquire the necessary land without procedural difficulties or obstacles, and should not permit any litigant to stall the land acquisition proceedings by raising any hyper-technical grounds. I am sure the Government would consider all these aspects and make the Land Acquisition Act, a really purposeful and meaningful legislation to help the State Governments in implementing their social objectives and welfare schemes, to achieve socio-economic justice for the common man, and to give effect to the Directive Principles enshrined in the Constitution, particularly in Part IV, article 46 of the Constitution. We should bear in mind the consciousness that any progressive law should suit and accommodate the changing and growing needs of the common man, and contemporary society, as otherwise the law will be outmoded. After all, law is only a means to achieve justice and not an end in itself. Viewed in this light, the Land Acquisition Act, including the Amendments we propose, should seek to achieve the rendering of justice to the common man, and fulfil the pressing needs of our society. 91

Thoughts on the 1985-86 Central Government Budget- Accent on Industrial Development

Speech made on 21.3.1985 92

Thoughts on the 1985-86 Central Government Budget - Accent on Industrial Development

The Central Government's Budget for 1985-86 is fully in harmony with the general feeling of euphoria which is now prevalent all over the country. This euphoria is not confined to the urban areas nor is it limited to the wealthy or middle class or poor, or anyone particular segment of our society. The feeling is universal. It is in reality a deep, long felt, fervent desire for change -change for the better - and this mood of euphoria has over-taken the nation, because at least now we have a youthful and dynamic Prime Minister Shri. Rajiv Gandhi, who in his own person, symbolises that desire for change. Shri Rajiv Gandhi has fired the imagination of all sections of the popu-lation by holding out the promise of bringing about this long awaited and much needed change, and has inspired the hope that he will indeed fulfil this promise. The Budget on the whole, strikes a happy note, and is entirely in consonance with the plans, aspirations and dreams our young, ebullient Prime Minister has for this ancient nation. His equally youthful and talented colleague, the Union Finance Minister Shri Vishwanath Pratap Singh, who has proved that he is gifted with prescience, deserves the highest praise for presenting a bold and innovative Budget which can be described as the most important Budget since Independence. It is not an exaggeration to say that the Finance Minister Shri V.P. Singh has covered himself with glory by presenting this Budget, which reflects the vision and image of a Gov-ernment keen and intent on progress, with an emphasis on removing fetters on growth. 93

Wide ranging incentives have been provided to give the maximum possible impetus to growth oriented industries like electronics and to promote technological innovations in industry. There is an earnest endeavor to usher in an era of greater social justice through a package of schemes aimed at providing a measure of social security to the poorest of the poor. Impressive structural reforms resulting in simplification and liberalisation in the areas of taxation have been introduced, both in the individual and corporate sector. This Budget is characterised by boldness coupled with judiciousness. It shows that this Government is not afraid to break away from the shackles of self defeating tradition. In short, this Budget has something positive in it for every one. There has been a sincere attempt to cover all sections of the population and all areas and aspects of the economy. Coming to specifics, the salient features of the Budget which elicit unanimous praise and approbation are: 1) The Crop Insurance Scheme with low insurance charges and subsidy to marginal and small farmers; and the increased subsidy on domestic and imported fertilisers. These measures are indeed a boon to agriculturists. 2) The Social Security Scheme to cover the risk of death by accident in respect of earning members of poor families comprising landless labourers, small and marginal farmers traditional craftsmen and others not covered by any insurance scheme or workmen's compensation arrangements, shows the Government's genuine concern for the weakest sections of our society. 3) In the realm of industry, the proposal to introduce special legislation for sick units is laudable. In fact I would say that the most significant and forceful feature of this Budget is that mismanagement of industry is now going to be treated as a grave offence. In particular, I welcome the Finance Minister's statement that those who are deemed to be responsible for mismanagement will not have access to assistance from financial institutions even in new ventures. It had become an accepted fact in our country that industrialists made themselves rich at the expense of the industries involved, and needless to say, at the expense of the hapless workers employed in these units. Over the years it had become the norm, the usual practice for industrialists to declare their units sick and order closure, thereby victimising the poor workers who were laid-off and also coolly and nonchalantly crying a halt to industrial growth, while the industrialists themselves walked away with their personal coffers enriched to begin the same process all over again elsewhere. 94

By squarely laying the onus for reporting sickness on the management of the units themselves, the Finance Minister has evolved a bold and positive new policy. To quote the Finance Minister's own words, "Bad managers, like bad currency, have to be kept out of circulation" and this new policy, if strictly adhered to, will definitely ensure that they are kept out. The proposed establishment of a new corporation to rehabilitate sick units or promote the merger of profitable and weak enterprises is equally welcome. 4) At long last workers have been given due recognition as the real backbone and builders of the nation. By the decision to introduce the necessary legislation so that legitimate dues of workers rank pari passu with secured creditors such as banks in the event of closure of the company, and by the declaration that worker's dues will rank above even the dues to the Government, the Finance Minister has elevated the status of workers all over the country. Worker's participation in management is essential, and I hope the Government of India will speed up the introduction of the proposed scheme to encourage this. 5) The raising of the Bonus Limit to Rs. 1,600/- per month from Rs. 750/- and 6) The elevation of the ceiling of Death-cum-Retirement Gratuity from Rs. 36,000/- to Rs. 50,000/- for Central Gov-ernment employees are also very welcome measures. 7) The structural reforms in the system of personal taxation are such that at last, honesty will become a practical proposition. Until now, there were many tax payers in this country who were not chronically dishonest, and who really had no desire to evade taxes and get into trouble. But the imposts were such that they would take away a man’s entire income altogether if he genuinely tried to be honest. Our earlier taxation laws themselves proved to be a formidable barrier against honesty, and indeed worked as a disincentive and discouragement to those who were basically honest. By abolishing the surcharge on Income-Tax; by lowering the effective tax rate in the highest bracket from 67.5 per cent to 50 per cent; by giving reliefs all down the line and reducing the number of slabs from nine to just four, and raising the exemption limit from Rs. 15,000/- to Rs. 18,000/- a year, at one stroke the tax structure has been vastly simplified. As a result, out of 40 lakh tax payers, nearly 10 lakhs will now be freed from the tax net altogether. 8) The abolition of estate duty and compulsory deposit are also welcome measures. The Compulsory Deposit Scheme served no other purpose except to act as an irritant to already harassed tax payers. 95

The abolition of compulsory deposit evokes a huge collective sigh of relief from millions of assessees, which I am sure must be echoing in the Finance Minister's ears. Though the repayment of compulsory deposit made by the tax payers in the past has been postponed by one year, interest will accrue to it. This cautionary measure is understandable and justified because of the need to restrain excessive expansion of money supply and the necessity to impound a part of the bank's loanable funds, to ensure a stable and balanced economy. 9) Among the plethora of other concessions and reliefs offered, the most noteworthy are: a) The proposal to raise the monetary ceiling on the exempt amount of retrenchment compensation received by industrial workers from Rs. 20,000/- to Rs. 50,000/- and b) the exemption to imported wood pulp and wood chips from customs duty. 10) I wholeheartedly endorse the reduction of customs duty on medical equipment such as Nuclear Magnetic Reso-nance Scanner, CAT Scanner and Linear Accelerator to 45 per cent ad valorem. With regard to sophisticated medical equipment for which no indigenous substitute is available in our country, I request the Finance Minister to consider doing away with customs duty altogether. As it is, the actual cost of such imported equipment is prohibitive. Only very wealthy medical practitioners and a few big medical institutions are able to afford to import them. By totally exempting such highly sophisticated medical equipment from customs duty, and if possible, by subsidising the Import of such equipment by smaller medical institutions the Government of India will be taking a step forward to put the best, most advanced medical treatment within the reach of the common man. 11) The scheme to give suitable concessions to sportsmen is very welcome and it shows that the Finance Minister has not let any area escape his searchlight. I only wish that in his speech, the Finance Minister had also included the word “sportswomen”, because on some occasions our sportswomen have distinguished themselves and done India proud, far better than sportsmen. 12) The proposal to dispense with the requirement of taking out licences for television sets, radios and VCRs is bound to be welcomed by all. 13) Exemption of excise duty for the small scale sector is also a step in the right direction to encourage growth. 14) The provision of free education for girls up to the hIgher secondary level is a measure that deserves unstinted praise and in this regard I am reminded of the words of Maxim Gorky, “The measure of culture is one's treatment of women.” 96

So far all my remarks have been positive and highly appreciative. They can be regarded collectively as part A of my speech. Now I come to part B of my speech. I do hope that my following remarks will not be construed as negative criticism, but viewed in the proper perspective as well- meaning, friendly suggestions. At the outset of the latter part of my speech, first I would like to make a general point. 1) Under our administrative system, all schemes of development and welfare measures of the Government ultimately have to be implemented through the civil service. This civil service, however, has not been freed from the enervating mental tension caused by petty economic worries due to the practical difficulties of making both ends meet, with regard to the requirements of daily living. A discontented, dispirited, grumbling civil service will not be able to effectively assist the Government in transforming or translating into reality, its dreams to taking the nation forward into the 21st century, on a par with the most highly developed countries in the world. I have been informed through reliable sources, that while the emoluments at the lowest levels or rungs of the civil service have gone up by three times i.e., by 300 per cent between the period 1973 and 1985, those at the highest levels have gone up by only 70 per cent during the same period. These increments have hardly kept pace with inflationary spirals and the consequential economic pressures, besides suffering further erosion by taxation. The pay at the highest levels in the civil service, in net terms, is actually less today than what it was in 1973. Here is an area where bold and innovative measures are definitely called for. In fact, they are sorely needed and long overdue. Some reliefs in areas like housing, transport etc., are necessary for the civil service. Needless to say, it is at the highest levels of the civil service that the ultimate responsibility lies for implementing any and all progressive schemes of the Government. As such it is essential to ensure modicum of relative freedom from petty economic worries for those engaged in this service. I am well aware that charges of "elitism" could possibly be levelled against the Government if such reliefs are provided. However, such considerations do not take away the substance from the main thrust and logic of my argument which is, that the agency for implementing the various programmes of the Government, namely the civil service, has to be a 97

contented one, if it is to function wholeheartedly as a committed partner of the Government in the development process of the nation. It is in the larger interests of the nation to have a contented, committed, responsible and honest civil service, rather than encourage corruption and slackness in this most vital area, by not providing the sorely needed relief which is long overdue to it. 2) An outlay of Rs. 400 crores has been announced for the Rural Landless employment Guarantee Programme. The Finance Minister himself has stated that this allocation has been kept at the same level as in the current year. I strongly submit that this amount is insufficient and has to be enhanced. We have to bear in mind that now educational institutions in the country are larger in number and as a natural corollary, the number of educated unemployed youth is also increasing. 3) With regard to the increased duty rates prescribed for household, laundry and toilet soaps, I very strongly feel that this measure could have been avoided. The Finance Minister himself admits that the incidental revenue gain from this measure is only Rs. 1 crore. The common man will be hard hit by this measure. After all, cleanliness is next to godliness, and household, laundry and toilet soaps are essential items which are a prerequisite for cleanliness and can hardly be considered luxury items. It will not do at all to put items such as soap out of reach of the poor. The Finance Minister is a man gifted with imaginativeness, and I am sure he will be able to conjure up without much difficulty in his mind's eye, an image of an India populated by hordes of unwashed, foul smelling people wearing soiled clothes, emitting an even more offensive odour, living in dirty unclean dwellings - all because they cannot afford to buy household, laundry and toilet soaps. There is already a budgetary deficit of Rs. 3,985 crores. A deficit of just one more crore of rupees is not going to make much difference to the Budget. When the Government of India feels it can meet deficit financing to the tune of Rs. 3,985 crores it can very well manage to find one more crore of rupees in the interests of the common man. By scrapping this measure which would bring in a revenue of one crore, the Government of India would be benefitting innumerable crores of Indian citizens, and the common people of India would be eternally grateful to the Finance Minister for doing away with the increased duty rates on soaps. Even now it is not too late, it can be done, and on behalf of the crores and crores of common people of India, I earnestly beseech the Finance Minister to scrap the additional duty on soaps. 98

In addition, I entreat the Finance Minister to look into the possibility of further lowering the existing duty rates on soaps, so as to make cleanliness a cheaper and more viable proposition for the common man. 4) Auxiliary duty on crude petroleum has been raised from Rs. 100 to Rs. 300 per tonne. In addition, a basic customs duty of 10 per cent ad valorem is also proposed to be levied. I admit that the import price of oil has been rising sharply due to the appreciation of the dollar in which oil prices are designated, and therefore probably, the Finance Minister has no other option but to drastically increase the levy on crude oil. But it is my duty to point out that this increased levy coupled with increase of freight rates in the Railway Budget, cannot but affect one and all. Inter-State movement of all kinds of goods including food grains such as rice and wheat, is an integral part of our economy. This inter-State movement of goods has to be either by road or by rail. Now that both have become costlier, the cost of both production and distribution of goods will go up at least by 10 per cent. Ultimately it will be the consumers who will be the worst sufferers as the prices of practically all goods are bound to go up. 5) Increased electrification is vital if the country is to make real progress. It is stated in the Budget that by the end of the Sixth Plan period, additional power generating capacity to the extent of 14,000 M.W. would have been added. This is hardly sufficient for a country which plans to take rapid strides forward in the spheres of industry, science and technology; and not at all adequate if the Government means to fulfil its dream of taking India into the 21st century on an equal footing with other developed nations. I fully appreciate the Finance Minister's decision to complete projects already under implementation rather than taking on new ones. I also agree that it is wise and prudent to provide more for projects which are in an advanced stage of execution and which can be commissioned more speedily so that the benefits can start flowing to the economy as early as possible. Nobody can disagree with the wisdom and necessity of these decisions. Yet, I feel sufficient emphasis has not been laid on increased power generation in the Budget, and this is one area that we cannot afford to neglect at any cost. Electrification is the one thing on which the whole country depends, and will have to depend upon increasing in the years to come, if we are to make any real, meaningful progress. Viewed in this perspective, the additional power generation capacity of 14,000 M.W. is woefully inadequate and falls far short of the real needs of the country. 99

More emphasis should be laid on increased power generation and the necessary funds for it have to be found somehow. 6) The Finance Minister has emphasized in his Budget speech, the importance of the need to conserve scarce foreign exchange. There is a huge balance of payments, repayments of the International Monetary Fund loan etc., and India needs all the foreign exchange it can get. In this context, I wish to point out that the marine industry of Rameswaram must not be neglected. Before the outbreak of the ethnic strife in Sri Lanka with its fallout of refugees and the subsequent attacks on the fishermen of Rameswaram by the Sri Lankan Navy, Rameswaram was able to record a turnover of Rs. 20 lakhs every month through fishing alone. Middlemen used to buy the catch from the fishermen at Rs. 10 to Rs. 15 per kg and sell it to the wholesalers or exporters at about three times the seashore price. Thus the cumulative worth of the transactions was around Rs. 60 lakhs per month. Since February this year it is zero, according to statistics provided by the Fishermen's Association of Rameswaram. Nearly Rs. 60 lakhs worth of transactions per month have ground to a standstill. As most of the catch is for export purposes, the foreign exchange loss to the country should also be taken into account. India can ill afford to lose Rs. 60 lakhs every month i.e., roughly Rs. 7.20 crores a year worth of foreign exchange. Therefore, in the larger interest of the nation's economy it is essential to reinfuse life into the now almost dead fishing industry of Rameswaram. Since the reasons for the enforced cessation of fishing activity are external, it is up to the External Affairs Ministry and the Ministry of Defence to do something about it. 7) Finally, with regard to the Finance Minister's reference to optimum utilisation of our main resource, i.e., human labour, I wish to make a few remarks. I am all for the rapid development of science and modern technology, and the encouragement of technological innovations - in particular, computers. These are essential and indispensable for progress, if we are to keep pace with the modern world. However, we should not forget that in many Western countries and in highly developed countries of the East like Japan, one of their main problems is under population, and as a result, they face acute shortage of human labour. Hence their increasing dependence on ever more sophisticated technology. In India our problem is quite the reverse. We have a problem of over population and ever increasing unemployment. We constitute one-sixth of the human race in the world and jobs have to be provided for all our citizens. 100

Therefore, we should see to it that the speedy growth and development of technological innovations in industry, while indispensable to progress, does not result in further aggravating the vexed problem of unemployment in India. To sum up, in conclusion, I would like to say that our youthful, dynamic Prime Minister Shri. Rajiv Gandhi has kept his promise to the nation, and our equally dynamic Finance Minister Shri Vishwanath Pratap Singh has ably reflected his ideas in the Budget. Through the presentation of this Budget, the Prime Minister and the Finance Minister in collaboration have jointly succeeded in giving new life to these memorable words of Franklin D. Roosevelt: “We build and defend not for our generation alone. We defend the foundations laid by our Fathers. We build a life for generations yet unborn.” 101

Evolving a National Textile Policy: Protecting the Handloom Sector

Debate on the new National Textile Policy on 13.8.1985 102

Evolving a National Textile Policy: Protecting the Handloom Sector

Mr. Vice-Chairman, Sir, I will try to be brief in my remarks on the new National Textile Policy announced by the Government of India on June 6, 1985. Much has already been said on this subject in the other House as well as this one. Not only the members in the opposition but even most of the ruling party members who participated in the discussion in the other House, have expressed grave misgivings about the new textile policy. I find myself quite in agreement with the doubts and apprehensions already expressed, and the criticism already voiced against this new textile policy. I do not wish to repeat what has already been said, since most of the Honourable Members in this House would have gone through the speeches made by the Honourable Members in the other House on this subject. I shall therefore confine myself to a few important points. It has been announced by the Minister for Textiles that the proposed restructuring of the textile industry will have three main dimensions, namely: (a) The industry shall be viewed in terms of the stages of its manufacturing process, namely, spinning, weaving and processing; (b) The industry shall be provided with fuller flexibility in the use of various fibres, and (c) The industry shall be subject to more pragmatic policies regarding creation or contraction of capacities by units, in order to increase competition and promote healthy growth in the industry. As regards Clause A, I see nothing wrong in it. In Clause B, there is a catch. There is more to it than what meets the eye in this seemingly innocuous statement. As for Clause C, it is positively dangerous. It is as deadly as an atom bomb, whose 103 nuclear fallout will spell the doom of lakhs of workmen employed in the mill sector. But I will come to that later. At another point in the text of the new textile policy, the Minister has announced a whole plethora of steps running into 8 sub sections. These measures are purportedly designed to ameliorate or better the lot of hand loom weavers, and in addition to all this, two more schemes have been enunciated to provide benefit to handloom weavers - namely: (1) A contributory thrift - fund scheme to provide assistance to the handloom weavers during times of need, and (2) A workshed-cum-housing scheme to provide a better place for work and living to the handloom weavers. At first glance, all this looks very nice on paper, and it also sounds very wonderful when we first hear it. But what is the reality? An in-depth analysis of the new textile policy reveals that it is heavily loaded in favour of the mill sector. This new policy offers maximum concessions and a tremendous fillip to the rich tycoons and magnates of the mill sector, and pays only lip service to the needs of more than 75 lakhs of poor, humble handloom weavers all over the country. This new policy is not going to restructure and promote the healthy growth of the entire textile industry in the country. It is going to boost up the structure of the mill sector only. The powerloom sector will also benefit as it is closely linked with the mill sector in several ways. It is the hand loom sector which is going to receive a death blow if this new policy is followed. As a result of this new policy, in about 3 to 4 years time, the structure of the handloom sector will not be restructured or built up or shored up - instead this new policy will completely demolish and destroy the structure of the hand loom sector, culminating in the total obliteration of the hand loom industry. If this policy is followed, in about 4 years' time, the hand loom sector will be killed - wiped out totally. I am being very blunt, I know, but this is the truth which is plain for all to see, if this new policy is viewed with an unbiased mind. Can the country tolerate or withstand this? In Tamil Nadu alone there are more than 25 lakh workers in the handloorn sector. What about the hand loom workers in other States? In particular, what about the handloom weavers in the North Eastern States of India? The North East is well known for its beautiful traditional hand loom textiles. The Government itself admits that 75 lakh weavers are engaged in the hand loom industry. I am sure the actual figure must be much higher, since whole 104

families of weavers engage themselves in hand loom cloth production, which is their only means of livelihood, and on which they depend totally for their very existence. What is to be the fate of these lakhs of poor workers? The Government speaks of a scheme to help them in times of need. As far as the handloom weavers are concerned, they are always in need. They are already, since time immemorial, living and existing in pitiable, miserable conditions of abysmal poverty. In this regard, I must mention that the A.I.A.D.M.K. Government in Tamil Nadu is the only State Government which has enacted an unique Act for the payment of minimum wages to the hand loom weavers. It would be a good thing if the Union Government came forward to enact a similar Minimum Wages Act for handloom weavers throughout India, and the minimum wages prescribed for production of controlled cloth must not be lower than the wages paid in accordance with the Tamil Nadu Act. Referring to the workshed-cum-housing scheme for handloom weavers now announced in the new textile policy, if I am not mistaken, I recall even 2 years ago, the Central Government announced that the implementation of the scheme for building houses for handloom weavers and beedi workers would be accelerated, and measures would be taken on a war footing - but what has been done? What happened to this grand proclamation made two years ago? I ask the Central Government - have you even moved a little finger in this direction? If you say you have, I am sorry to say that I am not able to see any tangible evidence or results. Can you provide details of where such houses have been built, and how many such houses have been built for hand loom weavers during the past two years since that scheme was announced? I now refer to the release of funds by the Government of India for the hand loom sector. If we take a look at history, we find that unfortunately or otherwise, through the years, the whole concept of the hand loom industry has historically become a subsidy-oriented one. By observing a special Handloom Week or Weeks, as the case may be, every year, huge rebates upto 30% are given to the co-operative societies, as incentives for increasing sales, and to dispose of accumulated stocks. This 30% rebate is supposed to be shared in equal measure by the Central Government and the State Governments. The Centre is supposed to give 50% and the States 50% of the rebate. Because of huge resource constraints which the States are constantly facing, some State Governments may not have released their share of the rebate amount. But, I ask the Centre, have you released your share of the rebate amount to the States, at least to prove your bona fides? As I have already admitted, some State Governments may not have released their share of the rebate amount. 105

But at least the Centre can prove its bona fides, by coming forward to release its share of the rebate to the States with the condition that the States should disburse their share of the rebate within the same period, or within a stipulated time limit such as three months or so, failing which, the amount will revert back to the Centre. Surely, the Centre can do this much. But you have not done even that. In addition to all this, by way of further repression the Government has reduced the number of annual rebate days for handlooms from 60 days to 30 days. The Sales of handlooms in Tamil Nadu touch 75% of the total production only during rebate days. In the larger interest of handloom weavers, the Centre must again restore the number of rebate days to 60 days. I fail to understand the rationale behind the Centre's decision to reduce the number of rebate days from 60 to 30. On the one hand, the Government talks of encouraging the handloom sector and on the other hand the Government does everything possible to stifle it. The Government has now reserved the production of controlled cloth exclusively for the handloom sector. Controlled cloth is the poor man's cloth, no doubt - but that is also precisely the reason why movement of such cloth will be slow, and the remuneration to the handloom workers will be less, and needless to say, the profits will also be so low as to be of no account, or practically non-existent. Now the entire burden of producing less remunerative, non-profitable controlled cloth has been thrust or dumped on to the hand loom sector. Yarn is being manufactured by mills, and this yarn is the raw material for the handlooms. Yarn supply is controlled by the mills. So they can gradually tighten the noose and kill the handloom sector which is at their mercy. Controlled cloth stocks have already piled up and are not moving. In Tamil Nadu alone, Rs. 9 crores worth of stock has accumulated in the co-operative handloom sector, and they are unable to move the stocks. There is nobody to purchase it. Ministry of Defence and other Public Sector Undertakings should purchase handloom goods and place more orders and encourage the handloom industry. And in this regard, I must mention that I have already spoken about this last year in this very House. Several times, representatives of the Tamil Nadu Government and of the hand loom industry have pleaded with the Centre that the Ministry of Defence and other Public Sector Undertakings should purchase handloom goods and encourage the growth of the handloom industry. Only yesterday, I met and spoke to some handloom workers from Tamil Nadu. They have come all the way to New Delhi, to plead with me to take up their cause in Parliament. They are convinced that this new textile policy spells their doom, and is specifically designed to finish them off once and for all time to come. 106

It is up to the Government of India to allay their fears, and give them reassurance and encouragement in practical, concrete terms, mere lip sympathy will not do. There is. no doubt that this new textile policy is heavily weighed - in fact loaded, in favour of the wealthy mill sector and the powerloom sector which is closely linked with it. I appeal forcefully to the Government to reconsider its new textile policy, with regard to the handloom sector. The Government should increase the number of items reserved exclusively for handlooms and not just quantitatively, but high profit-earning items which will substantially benefit the handloom sector, should be earmarked for exclusive production by the handloom sector. I come now to the mill sector. The categorical provision in the new textile policy that mills can contract their capacity while at the same time allowing the import of highly sophisticated technology, is very, very, dangerous. It poses serious threat to the livelihood of workmen in mills. What is going to happen to thousands or lakhs of these textile mill workers as a result of this policy? What will be their fate? If a free hand is given to the mill owners for contraction of their units at will, while simultaneously permitting import of highly sophisticated technology, from this, even a nitwit can deduce that this will automatically result in several thousands of mill workers being deprived of their jobs. More sophisticated technology naturally means less need for human labour. If units are going to be contracted, what about the workmen already employed in those units? Are they going to be retrenched? Are they going to be provided with alternative employment elsewhere? Or are they just going to be thrown out to starve and fend for themselves? Is the country really going to gain anything by increasing unemployment in leaps and bounds by this retrograde policy, when the problem of unemployment is already so acute? Instead of creating more jobs for the unemployed, the Government is adopting a policy which is going to deprive lakhs of workers already employed of their jobs, and throw them into the wilderness to starve. Is this the way you are going to develop the country? I strongly submit that unless and until adequate compensation or alternative employment is assured for the workers in the mill sector - unless the future livelihood of the workers is guaranteed before-hand, so that they will not suffer, the Government should not permit the contraction on any units in the mill sector. You cannot play with the lives of lakhs of hard working mill labourers like this, in order to benefit a few wealthy tycoons of the mill sector in the textile industry. If any mill owners are going to contract the capacities of their units, let the owners first tell us what they are going to do, to compensate the workers who will be thrown out of their jobs. 107

I repeat - unless and until the workers' future is satisfactorily assured, unless solid guarantees are provided, no mill should be allowed to contract the capacity of its units. I now come to the final part of my remarks. I do not vouch for the veracity of what I am now going to refer to - but I understand from very reliable sources, that Mr. Dhirubhai Ambani - it is needless for me to say who he is - and his close associates, were openly flaunting copies of the New Textile Policy, several weeks before it was officially announced by the Government. And, what is more, after the official announcement was made, it was found to be an almost verbatim copy of what Mr. Dhirubhai Ambani was flaunting and boasting about, well in advance of the Government announcement. Now what does this prove? From this, it is obvious that those who constitute the powerful mill lobby, have either shaped the new textile policy themselves, or they have been a party to influence its shaping. The major point to be stressed here is that the report of the Experts Committee on Textiles, on whose recommendations the New Textile Policy is supposed to be based, has not been made public. It has been classified as ‘secret’. Despite this point having been raised by several members in the Lok Sabha, the report has not been made public. It is now confirmed that even the State Governments had not been consulted at the time the policy was formulated, or at the stage of finalisation. Handloom industry is a State subject and so is employment. Any adverse consequences on employment would have to be borne by the State Government. These two points - one about the report of the Experts Committee being withheld from the public, and the other about non-consultation of the State Government in evolving such an important policy, illustrate the process used for evolving such an important policy, of such significance. The Indian Cotton Mill Owner's Federation is claiming that all its demands have been conceded in the New Policy. This could have happened only if its members had full access to the Textile Ministry and Experts Committee. The Hon. Member Mr. Jacob who spoke on behalf of the ruling party, commended the Experts Committee for having finalised the new textile policy in the very short time - at record speed. No wonder! After all, the policy had already been formulated by the likes of Mr. Dhirubhai Ambani, and all the Committee had to do was to put its stamp on it.

All along, the Government of India, in the larger interest of the country, has been advocating a textile policy, taking into account not only the needs of the mill sector, and that of the powerloom sector, but also keeping in mind the ancient 108

heritage so special to handlooms - and in particular the special requirements of the hand loom sector. But now, after the Bombay Textile Mill Worker's strike in order to give a fillip, a boost, to the mill sector, instead of taking into account the basic requirements for long overdue modernisation, and replacement of obsolete equipment, and instead of giving special incentives for this purpose, the Government has tried to dodge this issue, and instead of ensuring the continuity and safety of both sectors - here I say both because I am clubbing the mill sector along with powerlooms, and taking the hand looms as the other sector, the Government has moved in the wrong direction by giving an enormous boost to the mill sector at the expense of the handloom sector. In effect, the hand loom sector has been sacrificed like a sacrificial goat, at the all - powerful altar of the mill sector. In view of the more than 75 lakhs of poor hand loom weavers, whose whole families depend entirely on the handloom industry for their very existence, I feel it is the handloom sector which should be considered more sympathetically by the Government, and this consideration should be extended in concrete practical terms, instead of just paying lip service to it. This statement of mine should not be misconstrued, because I say this, it does not mean that I am against the mill sector. I am not against the mill sector.

What I am saying in effect is that let the mill sector also grow and flourish. The growth of all sectors is necessary for the nation's economic progress and development. But, in any policy decision, the Government should ensure that the growth of one sector is not at the expense of the other. The crux of my statement is this - the Growth of an already strong sector should not be encouraged to such an extent, as to practically obliterate and wipe out from existence the weaker sector. The Government should evolve a more balanced and fair policy. That is all I am saying. With these remarks I oppose the policy in toto and conclude. 109

Income-Tax & Wealth-Tax Arrears of Film Artistes

Personal Explanation under Rule No: 241 given in the Rajya Sabha, 19.8.1985 110

Income-Tax & Wealth-Tax Arrears of Film Artistes

On Tuesday, 13th August, 1985, in a reply to Unstarred Question No: 1876 put by Shri. Pyarelal Khandelwal, as to the names of film artistes against whom income- tax and wealth-tax arrears amounting to more than rupees one lakh are outstanding at present, the Minister of State for Finance, Shri. Janardhan Poojary released a list of several film personalities, in which my name was also included. I would like to clarify the true position, since my personal prestige and reputation are at stake, and particularly because I have been subjected to great embarrassment, because this news item has been sensationalised in the vernacular Tamil press, and has been blown up out of all proportion. Since my personal integrity is at stake, I express my profound gratitude to the Hon'ble Chairman for permitting me to make this Personal Explanation under Rule No: 241 of the Rules of Procedure and Conduct of Business in the Council of States. The truth of the matter is as follows: I have always been very prompt in paying all my tax dues. In fact, several times I have paid excess amounts, and I can proudly say that I am one of the very few film artistes who has frequently been the recipient of refunds from the Income- Tax Department because I had paid more than was due. The amount in question is only for the assessment year 1976-77, which has been disputed, and an appeal has been filed to the Commissioner of Income-Tax (Appeals) Madras. A refund is also due to me from the Income-Tax Department and after the disposition of the appeal, if the disputed amount has to be paid, it will be adjusted against the refund. Therefore, it cannot be classified as arrears. The important point to note here is that I should not be subjected to embarrassment or penalised, because of the inordinate delay by the Income-Tax Department in disposing of cases. 111

In this particular case, even in the year 1976-77 an appeal had been filed, and the case was set aside by the Commissioner of Income-Tax (Appeals) at that time. Now, for reasons best known to itself, after a lapse of 8 years, the Income-Tax Department has suddenly decided to take this case for re-assessment and referred it once again to the Income-Tax Officer. Hence, once again, I have filed an appeal with the Commissioner of Income-Tax (Appeals). My argument is this: If the Commissioner of Income-Tax (Appeals) had decided 8 years earlier that the amount in dispute should be paid as tax dues, I would have paid it then and there itself. But the Commissioner of Income-Tax (Appeals) set it aside at that time, and the matter rested there for the past 8 years. Now all of a sudden, the Income-Tax Department decides to take up this case for re-assessment, after 8 years. It seems to be a case of the Income-Tax Department having second thoughts or afterthoughts about this matter. Is this my fault? Certainly not. Therefore, I respectfully submit that since the Commissioner of Income- Tax (Appeals) has not yet decided whether the amount is payable as tax dues or not; and since there is already an amount pending as refund to me by the Income-Tax Department against which this can be adjusted should the need arise, this cannot be termed as Income-Tax arrears, and my name should not have been included in the list of persons against whose names income-tax arrears are outstanding. 112

Sorry Plight of Women's Homes

‘Special mention’ in the Rajya Sabha on 20.8.1985 113

Sorry Plight of Women's Homes

Mr. Chairman, Sir, I thank you for permitting me to make this special mention in the House today. Through you Sir, I wish to draw the attention of the Government of India, in particular, the Ministry of Social and Women's Welfare to a news item entitled “Sorry Plight of Women's Home” in “The Indian Express” dated 19th August 1985. It graphically describes the inhuman, barbaric and horrifying conditions in which the women inmates of a Women's Protection Home are forcibly kept, in the Mahila Ashrya Garh in Bharatpur, Rajastan, which is run by the Government. The women inmates are treated worse than animals. They are not provided with even the basic, elementary necessities for human existence. They are tortured and beaten by male and female chowkidars even during pregnancy. They are not even provided with soap to clean themselves. They are given only one saree to wear, and when that single saree is washed and dried, they have nothing with which to cover themselves while that one saree is drying in the sunlight. In short, this co-called "Mahila Ashram" is worse than a medieval jail where the women inmates have to starve for everything including water, food, proper clothes and sanitation. They are kept as bonded labourers and tortured and beaten at the slightest pretext. The deplorable horrific conditions in this Women's Home are nothing new. Though it is shocking to hear about them, we are inured to such shocks as such instances are common place in our country. Probably we would be really shocked if we came across a Women's Home which is genuinely well run and where the inmates are decently treated for a change. The point to note here is that this matter would never have come to light but for pure chance. A local newspaper published a story about this Women's Home on July 15 this year. Justice G.M.Lodha of the Jaipur Bench of the Rajasthan High Court happened to read this news report. It is our good fortune that Justice Lodha 114

happened to be a very humane, kind-hearted person. Realising that the miserable inmates of the Women's Home could do nothing and had no means to obtain justice for themselves, the humanitarian Justice Lodha decided to treat the local newspaper story as a writ petition, and on that basis appointed the Chief Judicial magistrate of Bharatpur to go into the working of the Women's Home and prepare an inquiry report. After going through the report of the Chief Judicial Magistrate, Justice Lodha admitted the petition and observed that (quote) - “Prima facie, the inquiry report reveals inhuman, barbaric, primitive slum conditions of the Ashram, and the stepmotherly treatment to inmates is heart-rending, nerveshocking, and makes a mockery of social justice ensured in the Constitution to all citizens and particularly to the weaker, suppressed, oppressed victims in Society” - (unquote) Justice Lodha has given several ad-interim directions regarding provision of amenities, better treatment to the inmates, renovation work to be carried out in the Women's Home etc. While admitting the writ petition, the Justice has issued notice to the Chief Secretary of Rajasthan, and the Director of the Social Welfare Department. He has also directed that copies of his order be sent to the Chief Secretary; Director of Social Welfare; the Collector; Chief Judicial Magistrate; Superintendent of Police; Social Welfare Officer; and Executive Engineer, PWD of Bharatpur District. What I would like to point out is that there is only one such humanitarian Justice Lodha but there must be many more such Women's Homes all over the country, in similar appalling condition. Here, in the case of the Bharatpur Women's Home it was a sheer accident of fate that Justice Lodha came across such a newspaper report and was concerned enough to act upon it himself and order follow-up action. There must be hundreds or thousands of other such Women's Homes all over India. We cannot expect that the condition of all such Homes will be discovered and remedied in the same way. We have a separate Ministry of Social and Women's Welfare, with a Lady as Minister of State with Independent Charge. Very often we receive tour programmes of this lady Minister. We do not know for what purpose she undertakes these frequent tours. I suggest that it would be a good thing if the Minister of State for Social and Women's Welfare, undertakes frequent tours of all the States, and conducts a survey of all such Women's Homes run by Government; and takes necessary steps to implement remedial measures on a war footing with all speed. It would also be welcome if the Minister discloses the findings of such a survey to Parliament. 115

The JIPMER Issue

Supplementary question on JIPMER in the Rajya Sabha on 12.3.1986 116

The JIPMER Issue

Sir, we all know that very frequently the portfolios of Ministers are changed but still I think that there cannot be any sufficient grounds for Ministers to give wrong answers in the House. Just now the Hon. Minister admitted that the All India Medical Council had sent a notice to JIPMER which contained a threat of de- recognition, and then the Minister stated that the All India Medical Council itself withdrew that notice. But I recall that in this very House, last year the Hon. Member, Mr. Gopalsamy raised a half-an-hour discussion on this very subject and at that time, the Minister in charge of this portfolio then, Mr. Yogendra Makwana, denied that any such notice was at all sent by the All India Medical CounciL And today the Minister in charge of the same portfolio admits that such a notice was sent and then it was withdrawn by the Council. Sir, one question I would like to ask through you: Is it proper for Ministers - I do not want to use the word perjury - to give false replies in the House? 117

A Case of Police Apathy

Special mention on Police Apathy on Technical Grounds of Jurisdiction made on 13.3.1986 118

A Case of Police Apathy

Mr. Deputy Chairman, Sir, through you, I wish to draw the attention of the House and the Government of India, in particular of the Minister in charge of Internal Security, to a serious case of police apathy, callousness, inaction and indifference on technical grounds of jurisdiction. In the early hours of Sunday morning, that is, March 9th, there was a case of armed dacoity and murder in the border area between Delhi and U.P. at Ghaziabad. Technically, the place where the incident took place is in U.P., but the nearest police station is in Delhi. It is a very lonely road, a lonely rural area, and there are no neighbours around. When the dacoits attacked the family, the family members started shouting for help. So, the dacoits first ran away. Then they went up to a certain distance and found that no one was coming to their aid and no one was around. Then they came back, attacked the family and murdered one of the members of the family. Immediately after this incident took place, members of the family ran to the nearest police station in Delhi. But the police refused to act on the ground that it was not within their jurisdiction. They refused to act on technical grounds of jurisdiction. Similar incidents have occurred even In Delhi several times where one police station refused to act on a complaint lodged by someone because the place where the incident took place does not come within its jurisdiction. Sir, I would like to say that this kind of apathy and inaction on the part of the police can actually be construed as conniving at, aiding and abetting the crime. The police are the custodians of law and order and the police personnel are the people in whom direct authority is vested, who can take direct action, and who are the ones who should take direct action for the implementation of law and order. In many cases like the one I have mentioned now, it so happened that the culprits were allowed to get away and go scot free because the police refused to act on technical grounds of jurisdiction. In this particular case which I mentioned just now and which occurred in Ghaziabad, the nearest police station is in Delhi. Had the Delhi 119

police acted immediately as soon as the complaint was received, they could have nabbed the culprits. Later, the complaint had to go to the D.P. Police. When they conducted the investigation, it was found that the dacoits who escaped had gone towards Delhi. Sir, the point I am trying to make is that certain guidelines should be evolved and certain instructions should be given so that in real emergencies such as these when lives of innocent citizens are lost, when murders take place and when armed robberies take place, the police should not display such utter callousness and refuse to act merely on technical grounds of jurisdiction. Instructions should be given accordingly. In this connection, I would also like to point out that not only in Delhi, but practically in every State in India, the number of police personnel is woefully inadequate when compared to the total population. Again, people in high positions of authority say time and again that we should stop this overcrowding of urban population. Sir, how can we prevent people from coming and flocking to urban centres, how can we induce people to go and settle in remote areas when even the basic protection is not provided in those areas, in rural and remote areas. In rural and remote areas where incidents such as these take place, there should be ample protection provided for these people. Also I make a further request that proper instructions and guidelines should be evolved so that in future, police inaction such as this, police apathy such as this, does not result in the culprits escaping merely on grounds of technical jurisdiction. 120

Permanent Solution to Flood Havoc, Integral Coach Factory Expansion, Sethusamudram Project and Rapid Transport System for Madras

Speech during debate on Appropriation (Vote on Account) Bill, on 18.3.1986 121

Permanent Solution to Flood Havoc, Integral Coach Factory Expansion, Sethusamudram Project and Rapid Transport System for Madras

May I make an interruption with your permission? I am saying this in support of the Finance Minister. Just now you made a reference to the press and the mischievous propaganda in the press. There was a report, I recall, just two or three days earlier in one of the financial papers in which it said that there was a letter of protest from the Industry Ministry to the Finance Ministry. Sir, this is a very mischievous report from your view point. So, Sir should you not refute this, at least take action against the concerned paper or make a refutation because it implied that the Union Government are not pulling together as a whole? The report in the paper regarding your Budget proposals was that the Industry Minister had sent a secret letter to you. Mr. Vice-Chairman, I thank you for giving me this opportunity to speak on the Appropriation Bill, 1986. At the outset I wish to make it very clear that 90 per cent of my speech is going to be repetitive. I am not going to say anything new. As Dr. Johnson said, “It is not sufficiently considered that men require more often to be reminded than to be informed.” So most of my remarks today have to be considered in this context. The points I make may seem repetitive. They are repetitive but they are also essential, necessary and important because I have already informed the Centre, the Government of India, through my earlier speeches in this very House about what we require. So today the nature of my speech is not to inform the Government but to remind the Government of what we need. While replying to the debate on the Appropriation (Vote on Account) Bill, 1986, in the Lok Sabha the Minister of State for Finance, Shri. Janardhan Poojari, said, “The larger assistance to States on account of drought had upset the Budget Estimates necessitating the present demands for grants.” He said that against the Budget provision of Rs. 270 crores, the actual spending on assistance to State for natural calamities amounted to Rs. 1,015 crores during the current year. In this 122 connection again now I am going back to what I said in this House before in my speech on the Finance Bill in 1984 - at that time I had said that if we study the history of India over the past 100 years, we will notice that at regular intervals not only in Tamil Nadu but in the whole of India, the State has been affected by intermittent period of drought. A study of old almanacs relating to the past 100 years will prove that during this period droughts occurred at regular intervals. Since this is a known proven fact it is my request, I repeat this request, that the Government of India should anticipate these regular periods of drought and chalk out plans so that the Government is prepared to meet the situation when it arises. Similarly, floods occur all over the country. Every year the river Ganga is in spate and causes widespread damage because of floods. So also the river Brahmaputra. Every year a flood situation is created by these two rivers. Whenever this happens, there is a lot of talk about finding permanent solution to this recurring problem then everybody forgets all about it until again the next year the floods occur and again the same remarks are repeated and yet again the matter is left at that and forgotten. This happened with monotonous regularity every year. Isn't it high time that the Government of India really did something to solve this problem on a permanent basis? Is spending crores of rupees every year on flood relief the only way-out? Is this the only solution that we can think of? If we calculate the stupendous amounts spent so far since Independence during the past thirty nine years on flood relief operations alone, necessitated by the havoc wrought by these two rivers alone, the river Ganga and the river Brahmaputra, the total would be of Gargantuan dimensions. Instead of regularly incurring this colossal expenditure on flood relief, surely the same gigantic amount could have been better spent and would have been sufficient to implement a permanent solution to this problem? In this context, I repeat it is vital and necessary to seriously consider and expedite the linkage of the Ganga with the Cauvery. Indubitably, this will involve an expenditure of a staggering amount; I do not deny that. But the Government must obtain the necessary finance probably as foreign aid from friendly countries. The linking of the Ganga and the Cauvery will prove beneficial to the whole country in several ways. Not only will it boost the nation’s economy by increasing the production of electricity in the country, not only will it provide irrigation to thousands, indeed, lakhs of acres of land, but it will also, above all, foster and nurture a new awareness in the minds of the people that India is one. A scheme to link the Ganga and the Cauvery would be one of the best ways to promote national integration and strengthen national unity. Now, sir, I come to the specific points in relation to the State of Tamil Nadu. Regarding the Salem Steel Plant, in the Seventh Five Year Plan, only a sum of Rs. 16.06 crores has been provided and I submit that a minimum amount of at least Rs. 50 crores should be allotted. Regarding industrialisation in Tamil Nadu, Sir, this has been repeated ad nauseum by all the Members from Tamil Nadu, not only from my party, but from other parties as well. After 1967, no major industry has been started 123

in the State and at least now the Centre should think of doing something in this regard. Regarding the Hindustan Photo Films Factory at Ootacamund, a Polyester- based Films Project has been included now which is estimated at Rs. 163 crores. For this year, Sir, the Finance Minister has sanctioned Rs. 20 crores. But the file is now with the Industries Minister and the Industries Minister is sitting on that file. So I appeal to the Finance Minister to see that the file is moved and that the amount of Rs. 20 crores reaches the State as soon as possible. Regarding the expansion of the Integral Coach Factory at Perambur, Sir, this demand we have reiterated over and over again and all the Members from Tamil Nadu have done this. Yet we have been told that they are going to start a new coach factory at Kapurthala in Punjab. I think I should reiterate that this will involve an enormous expenditure for the Government because as far as the Integral Coach Factory at Perambur is concerned, we have all the necessary infrastructure right on hand. Not only that, now they have to start from scratch in Punjab. When you compare the costs, this will be very minimal. I suggest expansion of the already existing project and I must also point out that in and around Tiruchirapalli in Tamil Nadu, we have over 200 ancillary units, workshops, etc., which will be very beneficial and it will be very easy and they will contribute greatly to the feasibility of immediate expansion of the Integral Coach Factory at Perambur. Regarding the Third Mine Project at Neyveli, Sir, there was a proposal from the Neyveli Lignite Corporation for the Third Mine Project and three Super Power Thermal Projects during the Current Plan. I would like to know what the position is regarding this Third Mine Project and I would also request that this Third Mine Project be expedited without further delay. Regarding the Sethusamudram Project, Sir, this again is something which has been repeated ad nauseum in both the Houses by all the Members from Tamil Nadu and by other Members also. Now, Sir, the Minister of Planning has said that this project is not viable economically. He says that it is not viable on economic grounds, on financial grounds. Sir, I dispute this. Economic grounds and financial grounds cannot be the only consideration or cannot be the only criteria. The Sethusamudram Project is vital to the nation's security. This is a very important consideration. Supposing that fifty years earlier or 84 years earlier the estimated cost would have been Rs. 43 crores, today, the estimated cost for this project would be something in the vicnity of Rs. 240 crores. Even supposing that we spend such a big amount of Rs. 240 crores, the port that will benefit, Tuticorin, will attract so much revenue that within no time, the amount that is spent to implement the Sethusamudram Project will be earned back through the revenue which will accrue to this port. So, I fail to understand on what grounds, on what basis, the Government of India says that this is not economically viable. 124

Then, sir, I wish to request for more 'Vayudoot' services for Tamil Nadu. If we look at the civil aviation map of India, we can see that in Northern India, practically for every distance of fifty to sixty kilometres there is a Vayudoot service. But the same does not apply to South India, particularly to Tamil Nadu. (Time Bell) Sir, I request that there should be ‘Vayudoot’ flights, most importantly from Salem to Thanjavur, from Tiruchy to Thanjavur, from Madras to Neyveli, from Madurai to Kanyakumari, from Coimbatore to Ooty, etc. Sir, I also wish to request the Government to expedite the completion of the East Coast Road from Madras to Nagercoil. This project has been on the anvil for 50 years and it has been the subject of serious discussion, very serious, heated discussion, for the past 10 years. But still it has not taken off. At least now I request the Government of India to see that this project takes off and the East Coast Road Project from Madras to Nagercoil is implemented without further delay. Now, Sir, as regards industries, according to the action plan programme prepared by the District Industries Centre as per the norms given by the Industries Department of the Government of India, it was stated that the criterion for developing or starting new industries should be “a no-industry district.” And now this study team sent by the Centre conducted a survey in Tamil Nadu which can be declared as “no-industry district”. Now, sir, this is a very misleading conclusion, a very misleading assumption. In Tamil Nadu the districts are so vast they are so huge, that no matter which district you take up, you will find at least one industry there. It is impossible to find a “no industry district” in Tamil Nadu. But, at the same time, we are often subjected to attacks by people from the treasury benches, by Hon. Members from the treasury benches, and even the Central Ministers coming to Tamil Nadu say that the State is industrially backward, that there is no development of industry, that Tamil Nadu is industrially backward. And yet the study team sent by the Centre says that there is no district which can be declared as a “no industry district”. Therefore, Sir, taking into consideration the fact that the districts are so vast and so huge, I would submit that the criterion should be taluks and, if possible, even Panchayat unions. So you should not take up this criterion for starting new industries area-wise, it should not be considered as district, but at least as taluk, and probably in the future to the Panchayat union level. Then, Sir, more Central assistance is definitely needed for the Mass Rapid Transit System for Madras. This, again, is something which has been ad nauseum, again and again, repeated in this House by Members of Tamil Nadu. That is why, at the outset, I said that this speech of mine today is more in the nature of reminding the Hon. Finance Minister and the Government of India, rather than informing the Finance Minister of our specific needs. Regarding the much publicised raids to unearth black money, I am happy that the Finance Minister has promised a review of the sweeping powers of search and seizure by the income-tax officials, I would not like to repeat what has already been 125

said. But it is a fact that these raids have proved to be counter-productive. It is indisputable that serious infringements of the rights, privacy and freedom of the tax payers are being perpetrated for purposes that do not and cannot bear scrutiny. And, this is happening on a sufficiently wide scale to demoralise or alienate the most dynamic sections of the community on whose well-being and prosperity the Government's tax collections ultimately depend. Therefore, I would make a further submission to the Finance Minister to review the provision that under the New Finance Bill, powers of search and seizure can be vested not only in income-tax officers but even in income-tax inspectors. What is more, they can exercise them without a search warrant. They will also have the right to enter an assessee's residential premises, though for all practical purposes they were not debarred from doing so even hitherto. While the Finance Minister has indicated his willingness to retrace his steps and jettison some of the provisions of the new Finance Bill, he needs to go further. He must, I feel, withdraw the draconian powers enjoyed by the investigative agencies at present. Yes, Sir, I am concluding. In conclusion, I would also like to remind the Finance Minister about another point which has been raised in this House earlier by other Members belonging to my party and belonging to my State with regard to unearthing black money. Just as there was a Voluntary Disclosure Scheme announced earlier, I would request the Finance Minister to seriously look into the possibility of bringing out another such scheme announcing bonds, such as Railway Bonds, and provide the people an opportunity to come forward voluntarily and declare their black money by purchasing these bonds. The Finance Minister can provide them with a guarantee that they will not be subjected to any kind of punishment or harassment. With these words, I conclude. 126

Analysing the General Budget 1987-1988 Abolition of Personal Income-Tax, Taking India to the 21st Century, Modvat, Career in the Army, Plan Allocation for Tamil Nadu, Second Atomic Power Station for Tamil Nadu, The Cauvery Water Dispute, Water for Madras

Speech during debate on the General Budget for 1987-1988, 9.3.1987 & 10.3.1987 127

Analysing the General Budget 1987 -1988 Abolition of Personal Income-Tax, Taking India to the 21st Century, Modvat, Career in the Army, Plan Allocation for Tamil Nadu, Second Atomic Power Station for Tamil Nadu, The Cauvery Water Dispute, Water for Madras

Mr. Vice Chairman, Sir, I rise to congratulate our young and dynamic Prime Minister, Shri Rajiv Gandhi for having forcefully reiterated his commitment to socialism through his General Budget for 1987-88 which he has presented to Parliament exactly 33 days after he took over as Finance Minister, following the precedent set by his illustrious grandfather, our first Prime Minister Pandit Jawaharlal Nehru and his equally eminent mother, our Prime minister, Smt. Indira Gandhi. Chanakya, the great philosopher and stateman also known as Kautilya was renowned for his political acumen and mastery of statecraft. Kautilya says: “Anu Raktha Prakruthi Sasahaayathvaath Alpenaapya Nugrahena Kaarya Saadhayathi.” This means a ruler with loyal people accomplishes his task even with a little help because of the people's co-operation. It is in such a spirit of co-operation that our Chief Minister of Tamil Nadu, Dr. M.G.R. has hailed the maiden Budget, presented by our youthful Prime minister Shri Rajiv Gandhi as a reflection of the policies pursued by Panditji, and has also extended the wholehearted support of the State Government and the people of Tamil Nadu to our Prime Minister, in his endeavour to establish a more egalitarian society. In his Budget, the Prime Minister has laid stress on four major policies giving them top most priority and importance, namely anti-poverty programmes, various measures for the welfare and protection of workers, provision of shelter and housing for the homeless on a vast scale and 128

increased importance given to education with a massive hike in the outlay for education from Rs. 352 crores in the current year to Rs. 800 crores. Before the presentation of the Budget, there was widespread speculation that the Prime Minister's Budget would be pro-rich with a heavy slant in favour of capitalist growth. In anticipation that generous concessions would be given to big industries, prices of industrial equities in the share markets had actually begun rising prior to the Budget presentation. But our Prime Minister did the unexpected. Shri Rajiv Gandhi decided to reduce the shareholding period from 33 months to 12 months; and also imposed a 30 per cent tax on the book profits of companies. As a result, most of the shares which attained peak levels before the announcement of the tax proposals, came crashing down as soon as the Budget proposals were made known. Over the past two years there was mounting criticism that the Rajiv Gandhi Government was becoming pro-rich. By his timely action and commendable approach the Prime Minister, I am happy to say, has erased that impression; and I am duty bound to warmly congratulate him for this. Our Prime Minister has deftly managed to strike a delicate balance in keeping with the needs of a mixed economy. His Budget is not anti-rich. None of the major concessions already given to big industry have been snatched away. At the same time, the major thrust of the new Budget proposals is most definitely pro-poor. Extra attention has been lavished on the upliftment of the economically weaker sections. There is definitely a heavy slant in the right direction, in the direction of the poor, which is as it should be. In a vast country like India which is in reality a sub-continent, nothing is simple. Everything is complex. There can be no simplistic solutions to problems, because there are no simple problems. Everything in India is complex. Its problems are also complex. Most of them defy solution. And it must be remembered by everyone that most of the problems our youthful Prime minister is facing are inherited problems and not those of his own creation. I dare say that perhaps the most formidable, the most difficult and the toughest as-signment any administrator in the world could be asked to tackle is the administration of a country like India. No other single homogenous nation in the world has such a mind boggling, stupefying conglomeration of diversities and complexities as India does. Under the Circumstances, our youthful Prime Minister is tackling this most challenging and daunting task valiantly, with singular zeal. Once again, I compliment him sincerely on managing to strike a dexterous, rational balance in his Budget proposals in accordance with the diverse needs and varied aspirations of such a complex nation as India. Of course, there has been some disappointment in certain areas. The salaried middle class has expressed dismay over the Prime Minister not having raised the income-tax exemption limit from Rs. 18,000 to Rs. 25,000 which was widely expected. The fixed income-group feels cheated. At the same time, the Prime 129

Minister has shown consideration to Government employees by deciding to increase the minimum pension and minimum family pension to Rs. 375 per month. Exemption from tax has been extended to payments made under voluntary retirement schemes for public sector employees. These measures deserve our warmest appreciation and praise. There were even suggestions and expectations before the Budget that personal income-tax should be or would be abolished altogether. Abolition of personal income-tax altogether would not benefit the States in any way since 85 per cent, of the total revenue from personal income-tax is distributed among the States and the Centre takes only 15 per cent. Therefore, it must be borne in mind that by lowering the rate of personal income-tax or by removing it altogether or doing away with it altogether the Central Government gains nothing and loses nothing of significance. In fact, it is the States which lose a major portion of revenue if personal income-tax were to be abolished altogether. Unhappiness has also been expressed by the middle class at the increased costs of aerated drinks and cigarettes. In this context again, I wish to quote one of Chanakya’s famous maxims on financial policy: “Thrupyenna Raajaa dhanasancheyana Na Saagaro Bhoori Jalaagamena Na Panditha Saadhu Subhaashithena Thrupyenna Chakshu Priyadarshanena” This means, the ruler is never satisfied with revenue collection, as the ocean with incoming waters, the scholar with good sayings, and the eye with the sight of the beloved. Having said this, Kautilya or Chanakya also goes on to justify the ruler’s predilection for collecting revenue. He says in this context: “Asamarthaa Prakurvanthi Munayopyartha Sanchayam Kim Na Kurvanthi Bhoopaalaa Yesham Koshavashaa Prajaa” This means that even inept ascetics store up riches; why not rulers whose people are dependent entirely on the treasury? Indeed, we may ask, why not? It is perfectly justified, because again in Kautilya’s own words; "Anaatthaanaam Daridraanaam Baalavruddha Thapasvinaam Anyaaya Paribhoothaanaam sarveshaam Paarthivo Gathi" This means: The ruler is the refuge for all the orphaned, the poor, the infant, the old, the recluse, the wronged and the humiliated. Seeing the massive mandate that our Prime Minister received in the last Parliamentary election, it is quite clear that all sections of the people do in truth look upon Shri Rajiv Gandhi as a refuge. 130

Coming to TV sets, our Prime Minister has often expressed his intention to take India into the 21st century as a fully developed nation in every sphere, especially as a scientifically and technologically advanced nation. As such, the dramatic hike in the excise duty on colour and black and white TV sets has evoked a widespread reaction of consternation and dismay among the general public. An excise duty of Rs. 600/- on colour TV sets and Rs. 150/- on black and white TV sets means that the Government will now earn Rs. 3,200/-per colour set. It is the general opinion that the consumer will suffer. It is estimated that the retail price of each TV set will go up by at least Rs. 1,000/- and, as result, manufacturers too will be affected adversely because the buying power will be restricted. Middle and low-income groups will not be able now to afford to switch over to colour TV sets. Sir, television cannot be viewed and treated as a luxury in these modern times. Today, I would assert that television is a necessity and not a luxury. It is not merely a medium of entertainment. It is a vital medium for information in practically every subject including science, art, culture, economic matters and day-to-day events of importance. Today, Sir, television is quite essential and is indispensable as a means of educating the masses for the rapid development and progress of the nation, if we look at it from a holistic point of view. Therefore, I earnestly request the Prime Minister in his capacity as the Finance Minister to kindly reconsider this particular Budget proposal and to scrap this additional hike in excise levy on television sets. I feel that this is a reasonable request, especially because the prices of TV sets have been hiked only last year. Sir, in our State of Tamil Nadu, the State Government has provided facilities for the people living in villages and even in remote rural areas throughout the State for viewing TV programmes. Since this is the most effective medium of education and information which reaches the people at home, in the larger interest of the overall development and awakening and enlightenment of the vast rural population of India, once again I beseech the Honourable Prime Minister to please reconsider this particular proposal and to do away with the additional excise levy on television sets. I am very hopeful that the Honourable Prime Minister will favourably consider this request in the larger interest of the nation's development and progress. Several consumer items including footwear, drugs, Sowbhagyavathi sarees, stationery, fluorescent tubes, bio-gas appliances, polyester wool-blended yarn, Janata soaps, etc., will now cost much less due to the reliefs provided by way of either reducing or doing away with the excise duty on such items. This is indeed a boon to the common man, and, on behalf of all my less fortunate brothers and sisters, I express my heartfelt gratitude to our Prime Minister for providing these welcome reliefs at a time when they were sorely needed. This is most definitely a Budget for the poor. The new Budget proposals such as the income-tax concession for housing, covering stamp duty, registration fee and other expenses, the setting up of a 131

National Apex Housing Bank with an equity capital of Rs. 100 crores, are most praiseworthy. It shows that great minds think alike. I say this because in our State of Tamil Nadu, our Chief Minister, Dr. M.G.R. has launched a scheme, a massive scheme of housing, which aims at providing thirty lakh houses in the next three years for the poor. The extension of MODVAT from 30 chapters of the excise tariff to cover all products is a welcome feature. All these are, indeed, milestones in the history of Budgets presented so far to the country. The measures for the welfare of workers to counter anti-labour malpractices deserve the highest praise. In cases where the employers do not credit their own contributions nor those of the employees to the Provident Fund and the State Insurance Fund and in cases where a separate fund is not being kept by employers in respect of gratuity of workers, it has been proposed by the Prime Minister to penalise such delinquent employers by providing that the contributions of the employees to these funds will be taxed as the income of the employer and allowed as a deduction only when they are made over to the separate accounts relating to these funds within the time allowed under the statute. This clearly shows the great concern and compassion our Prime minister has for the working class, which constitutes the true backbone of the nation and it is no exaggeration to say that no praise is too high for the measures proposed for the protection and welfare of workers. Coming to Defence, the Ministry of Defence has received the highest allocation of Rs. 12,512 crores for 1987-88, and this marks an increase of Rs. 2318.45 crores over the revised estimates of Rs. 10,193.55 crores for the outgoing year, which means a 22 per cent increase in the total allocation. I beg to differ with those who feel that the allocation for defence is excessive under the present circumstances, with hostilities threatening to erupt on our borders, and faced with the ever present possibility of armed conflict with our neighbouring countries on all sides, though we would definitely prefer to avoid any armed conflict with our neighbours, I feel that in the prevailing atmosphere of tension today, the increased expenditure on defence is inevitable and 100 per cent justified. I wish to draw the attention of the Prime Minister and this august House to certain remarks made by three retired Army Officers - a retired Brigadier, a retired Colonel and a retired Major. The remarks made by these retired officers deserve to be voiced in the august forum of Parliament. That is why I am expressing the same. “It is a fact (sad but true) that a Service career is at the bottom of the list of any young man in the country. There are some, even in the Army, who think that recruits they are getting now are better educated but this is because of the higher curriculum standards. Again with the increasing unemployment in the country, there would certainly be a substantial number of young men appearing for the various examinations leading to a career in the Army. However, such candidates do not include any from the top 30 per cent of those who pass the Central or State Board 132

examinations which could be taken as a rough guide to the calibre of a young man. If there is an alumni, not to speak of a ranked student, from any of the well known colleges entering the Army, it must be a freak case. “The educational background of the intake in the lower ranks in the Army is steadily increasing and with the progressively downward trend on the calibre in the officer cadre, the gap is getting narrowed (between those who lead and those who are led). The underlying principle in leadership is that the leader must be and perceived to be well above the led. Hence the problem of the Army not attracting high calibre young men has far reaching implications. “There are some well-known factors such as frequent postings, including non- family areas, leading to long separation, problems of children's education, etc. But to me it appears that the basic inhibiting factor is 'lack of growth.' All young men have clear concept of the growth factor in every profession. While there are sectors of Government service with in-built guaranteed growth, ambitious young men in private and public sector organisations are able to switch jobs climbing the ladder quite fast indeed. “The Army does not allow room for this. Conceptually it is like this; at the macro level, the country is developing and growing in all spheres of nation-building activities, while the Army has to remain more or less stationary. After all any disproportionate resource allocation to an unproductive insurance type of sector like the Armed Forces will result in reduced national growth. If the Defence budget is seen to be increasing, it is mainly due to increased cost of equipment procurement, maintenance and inflation. In any non-growing organisation there can be very little growth of a person. Not all Captains and Majors become Brigadiers or Major- Generals, and this stage can be reached after a comparatively long period. When an Army officer makes a laboured ascent say, to the level of Lt. Col. or Colonel, he finds that his counterpart in every other walk of life has gone far above him .....” The gap widens progressively and one fine morning our Lt. Col. or Colonel in his early fifties finds himself on the retired list while those in other walks of life are progressing still further. He is too old for any second career and too young to sit at home. Harsh economic realities of growing inflation force him to seek and accept demeaning jobs. I know of retired Lt. Cols and qualified technical personnel who work as supervisors or errand boys. Any number of examples of the glaring disparities of promotion and growth opportunities could be cited. There are cases of officers commissioned for short service for the IAS/IFS and far outstripping their colleagues selected on permanent commission. Then there are the released (i.e., not found fit for permanent commission) Emergency Commissioned officers joining paramilitary organisations and rising to dizzy heights. Most of those who retire from Central Government services find themselves working well into their sixties. There are any number of excise, customs and income tax consultants working overtime for years beyond their retirement. Retired 133

bankmen seem to be greatly in demand on the Boards of numerous new undertakings. Technical and administrative personnel (after leaving Government service) find themselves in the U.N. and other such exotic assignments. The poor Army officer after having to retire at a comparatively young age cannot join any of these categories. First, he does not possess any ostensible experience for such jobs and ofcourse, his cloistered service environment of Kuinga-La or such places does not provide him with much opportunity to project himself suitably beyond retirement. Any such environment which causes a lowering of one's ego or self-esteem cannot be wished away by philosophical pronouncements that cannot be helped. I have mentioned the way things are. It is a psychological truism that growth as perceived by an individual is an essential ingredient of motivation. The new emerging field of Human Resource Development is based on the fact that every human being wants to grow in stature. Unless this problem is seen in the correct perspective, it is not possible to evolve appropriate long-term solutions. Some kind of a framework for a solution can emerge only if the basic malaise is identified. It is essential to cater to the psychologically fulfilling growth factor and this cannot be given to a non- growing sector. The obvious answer is to effect lateral transfer to the growing sectors of the country. For instance, it could be proposed that if an entrant puts in say 15 years of service in the Army, he can be deemed to have given his due share to the national cause. Thereafter, there should be a lateral induction in all Central Government Services and Public Sector Undertakings. Such induction would go on from the ages of 35 or 40 years or so. With leadership and human relations skills developed over the years of service in the Army, it should be possible for any service officer to fit into a similar role in the civilian sector. Even after allowing a year or so of induction training and re­orientation, he still has a considerable number of years of service. How do we gauge what is the criterion for the desirability of any profession or career? The answer to this is very simple. It is only when a person is reasonably satisfied with his profession taking all pros and cons into consideration, that he initiates his children into it. Thus in the more attractive professions such as politics, civil service, private sector, medicine and so on, the parent prepares his progeny for the same. I would like to ask how many Army officers we find who induct their children and their sons into the Army. I am afraid the answer would be very few. In the case of politics, civil service, private sector and medicine, the parents send their children for the same. But military stands out as most unpopular among such professions. Few of the children of top ranking service officers take to their father’s vocation. If there are exceptions it can be assumed that they come under the category of “last forlorn” choices.

Speech continued on the next day, 10.3.1987 – Ed) 134

Madam, though not with deliberate intent, some how so happens that every time I speak on the General Budget, my speech also gets divided into part A and part B. Before I actually come to part B of my speech, which refers to matters of special interest to Tamil Nadu, I wish to wind up my remarks in relation to the allocation for Defence in the Budget for 1987-88. I was speaking about the marked reluctance generally displayed by parents in military service, to induct their progeny into the same service. It should be borne in mind by everyone that the military service is the only service where our youths sign their own death warrants at the time of joining the services. To top it all, they are thrown out of service at a comparatively much younger age, and especially when their family commitments are at the peak. These are few of the important reasons for deterioration in the quality of officers’ cadre. This cannot improve unless military service is treated as a privileged service, where the very best youths are given the very best, in return for their very best performance. With purely voluntary armed forces with an all-India composition, it is time that the Government made sincere efforts to preserve the Armed Forces as such, by attracting all the best talents from all over the country, by ensuring that all services in Government, quasi-Government corporations, are first made available, only to those who have in their prime, rendered national service in the Armed Forces for at least six to ten years. I suggest such a period because it can reasonably be expected that during this long period a person at an impressionable age, and with a steady professional career, can be expected to have imbibed a mature, disciplined, national outlook and a code of conduct of selfless service. The proposals for “side-stepping” and reservations as suggested just now, should not be allowed to be diluted and shelved, because of others imagining an inroad into their service seniority, promotions and privileges. Such a development will only pave the way for a further demoralisation in the youths of our country, who have served the nation by imperilling their own lives, and under extremely difficult strenuous conditions which have been spurned and shunned by others. I now make certain specific requests with relation to Tamil Nadu. The total Plan outlay of States and Union Territories has been fixed at Rs. 19,537 crores for 1987-88. A provision of Rs. 8,754 crores has been made next year for Central assis-tance for State and Union Territory plans. The second year of the Seventh Five Year Plan is coming to a close shortly, and the State of Tamil Nadu will enter into the third year with an outlay of Rs. 1,250 crores. However, the Union Planning Commission has assessed a resource gap of Rs. 86 crores for the State Government to reach this outlay, due to various factors. 135

The most important point to be borne in mind is the loss of revenue to the State Government of Tamil Nadu of nearly Rs. 400 crores, because of the introduction of prohibition from 1st January 1987 onwards. The introduction of prohibition has been widely hailed and welcomed by the women of Tamil Nadu. At the same time, it has caused a revenue loss to the State exchequer of nearly Rs. 400 crores. Bearing this in mind, I request the Government of India to release Rs. 86 crores either in the form of special Central assistance or advance Plan assistance to enable the State Government of Tamil Nadu to overcome this resource constraint next year and maintain the momentum already generated in Plan performance. I request the Prime Minister, Shri Rajiv Gandhi who is also the Finance minister, to kindly expedite the release of Rs. 86 crores to Tamil Nadu to make good the resource gap in the plan outlay for 1987-88. Next I come to the Basin Bridge Power House Project. The Basin Bridge Power House Project with an installed capacity of 90 M.W. has been shut down due to the fact that it had outlived its utility. It was operating under strained conditions causing pollution. The Government of Tamil Nadu has sent a project report for locating a gas turbine project in Basin Bridge as generating capacity at this load centre is considered essential to maintain stable power supply to Madras city. The Central Electricity Authority has cleared this project from the techno-economic angle. The proposal has been submitted to the Planning Commission for their investment decision. The clearance of fuel linkage from the Petroleum Minister is awaited. For the past one and a half years, the needs of Madras city have suffered for want of this stabilised power generation from Basin Bridge. This project has been considered feasible for quick implementation. Therefore, I would request the Prime Minister who is also the Finance minister to kindly look into this matter. Now, I come to the proposition for the establishment of a Second Atomic Power Station in Tamil Nadu. The question of establishing a Second Atomic Power Station in the South has been under the consideration of the Government of India for a very long time. The site selection committee of the Department of Atomic energy had recommended Kudankulam in Tirunelveli district as a possible site. The State Government has been pressing for an early decision on this recommendation. The Committee of Experts constituted to review the earlier recommendation of the Site Selection Committee had also recommended Kudankulam as one of the promising sites in the Southern Region. Tamil Nadu is in the grip of shortage of power as it has harnessed most of its viable hydro-power potential. There is also no gas resource available. Installation of a thermal power station poses problems because the required coal has to be brought from distant coal fields. Installation of a Second Atomic Power Station in Kudankulam in Tirunelveli district will help to reduce the chronic power crisis in the State and I hope we will soon have a favourable response from the Prime Minister in this regard. 136

Next, I come to the Sri Lankan Tamils issue. The Tamil Nadu Chief Minister, Dr. M.G.R. has urged the Prime Minister, Shri. Rajiv Gandhi, to give immediate attention and initiate an all-out effort to stop the military action by the Sri Lankan Government against the Tamil population there. In a telegraphic message, the Chief Minister of Tamil Nadu, Dr. M.G.R. has said that the people of Tamil Nadu have been deeply shocked at the decimation of thousands of innocent Tamils in Sri Lanka by their own Government which had unleashed the Army and ordered strafing of predominantly Tamil-dominated areas such as Jaffna and Vavuniya during the past two days. The Tamils have been forced to flee to forests for shelter. This is further evidence that the Jayewardene government is bent on solving the ethnic issue through genocide by exterminating the Tamil race through military action. Therefore, I reiterate our Chief Minister’s plan to the Prime minister to initiate urgent action in this regard. Now, I come to the question of the Cauvery water dispute. Aa bilateral discussions with the Government of Karnataka held at the instance of the Central Government - had failed to produce any positive results, the Government of Tamil Nadu requested the Central Government under section 3 of the Inter-State Water Dispute Act of 1956 to refer the dispute to a tribunal. The matter is pending decision with Government of India. Settlement of the dispute is vital as the Cauvery is the mainstay of irrigation in Tamil Nadu and it is the only major river in the State. In this connection, I would like to refer to the Cauvery Delta modernisation project. The Cauvery delta irrigation scheme is about two thousand years old and needs to be modernised with a view to achieving equitable supply and maximising productivity. The scheme was proposed for World Bank assistance by the Government of India. The World Bank mission indicated that in the absence of the settlement of the Cauvery dispute, at least an assurance that adequate supply of water will be available for the project will be necessary for the purpose of processing the project. The Government of Karnataka was addressed for concurrence to the scheme. But Karnataka's concurrence is not forthcoming. The project does not contemplate any new uses or extension of ayacut, nor does it violate any provisions of the Inter-State Agreement of 1892 or 1924. It only aims at revamping the ancient system to ensure equitable distribution of the available water, and to increase the productivity for each unit of water made available to the system. The delta being at the tail end of the Cauvery basin, the project cannot cause any injury or adverse effect to the upper riparian States. The Government of Tamil Nadu has sought the intervention of the Government of India in securing the consent of the Government of Karnataka to the Cauvery Delta Modernisation Scheme. In this context, I am constrained to refer to the Karnataka Chief minister Mr. Ramakrishna Hegde's recent speech in the Karnataka Legislative Assembly. Mr. Hegde stated that the Karnataka Government is planning to expedite the completion 137

of construction of new dams across the Cauvery before the Central Government can intervene on behalf of Tamil Nadu, to settle the Cauvery water dispute between the two States. Mr. Hegde has stated that he expects the Central Government will soon take some action in response to Tamil Nadu's plea, and so he proposes to complete the construction of the new dams before the Centre can act. If the Central Government does not act speedily and intervene at once and if Karnataka is allowed to complete construction of its dams, even the little Cauvery water that is now available to Tamil Nadu will cease to flow into the State. Tamil Nadu will be totally cheated of its legitimate share of the Cauvery river water. Hence I request the prime Minister to intervene at once, without further delay, because intervention at a later stage after Karnataka completes work on its dams, will be of no use to Tamil Nadu. Finally, I come to the Telugu Ganga Project. At present, Madras city is facing an acute shortage, acute scarcity of water. Even at the best of times, Madras cannot provide its residents with copious supplies of water. While the average Delhite has about 218 litres of water a day, a resident of Madras gets only 60-70 litres in good year. Even this dries up in a bad year, such as the present year. At the moment, Madras city is facing an acute shortage of water supply. The perennial problem of Madras city could be solved once and for all time by 1990, if - and it is a very big if - the Telugu Ganga project to bring 15 TMC ft. of water to Madras is completed on time. The Rs. 843 crore scheme has run into problems because a fierce dispute has broken out between Maharashtra, Karnataka and Andhra Pradesh, the three States through which the Krishna flows, over whether Andhra Pradesh will be using more water from the river than it is entitled to, once the project is completed, and the contention of Karnataka and Maharashtra is that this will be in violation of the Bacchawat Tribunal Award which allocated the Krishna water among the three States. The point of contention is not the supply of water to Madras to which all the three States have agreed to contribute. The Central Government has withheld its assent apparently on account of the opposition from Karnataka and Maharashtra, and three years after it was inaugurated by the late Prime Minister Shrimati Indira Gandhi, the Telugu Ganga remains in limbo. In the meantime, the 4.5 million inhabitants of Madras city are desperate for water. A frantic scramble for water has already begun and summer has just set in. We do not know how we will be able to survive and get through the scorching months ahead of us. On behalf of the 4.5 million inhabitants of Madras city, I appeal to the Prime Minister to come to their rescue and expedite clearance for the Telugu Ganga Project, so that this problem that has plagued Madras city perennially will be solved at least three years hence, from 1990 onwards. In conclusion, to sum up, I will quote one more maxim of Kautilya form the Chanakya Raja Neethi Saastra: 138

Uthkhaathaan Prathiropayan Kusumithaamshchinvan Laghoon Vardhayan Athyuchchaan Namayan Pruthoon Vidhalayan Vishleshayan Samhathaann Theekshnaan Kantakino Swaaropithaan Paalayan Maalaakaara Iva Prayogakushalo Raajye Chiram Thishtathi. This means that that ruler stays long in power who acts like a skilled gardener, rehabilitating uprooted ones, watching the blooming ones, strengthening the weak, bending down the too tall ones, weakening the excessive strong ones, separating the clustered ones, trimming the thorny ones and protecting the ones that have come up by themselves. Now you understand why I am quoting Chanakya. In this context, I must say that our Prime Minister is already doing an excellent job of gardening. He has already become a skilled gardener, exactly on the lines suggested by Chanakya and were Kautilya alive today, 1 am sure he would shower his blessings on our young Prime Minister in approval of our youthful Prime Minister's mastery over the intricate art of statecraft. I end with the prayer: May our Prime Minister's skill as a gardener grow with each day, and may a million flowers bloom in the garden of Shri Rajiv Gandhi, which happens to be India, our nation!

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