A Position Paper for Socio Economic and Political Transformation of Telangana Through Ten Strategic Interventions Prepared by: Dr. Mazher Hussain Overview: 1. Financial Inclusion: Accessing Bank Credits for People of Telangana 2. Creation of an Entrepreneurial Economy for Telangana 3. Reclamation of Traditional Telangana Food Patterns and Reduced Spending on PDS: Food Security Through Jowar, Bajra and Maize 4. Two Dimensional Approach in Health: Strengthening Government Facilities along with Tapering off Arogyashree Scheme 5. Two Dimensional Approach in Education: Strengthening Government Education System and Providing Free Admissions for Poor Students in Private Schools 6. Prevention of Communal Violence and Political Polarisation to Check BJP in Telangana 7. GO- NGO Coordination Committees involving Civil Society Organizations and Religious Groups: 8. Facilitation and Monitoring Mechanism for Total Implementation of Development and Welfare programs for SCs, STs, BCs and Minorities 9. Representation for Muslims in Local Governance Structures 10. Decentralisation of Governance: Strengthening Gram Sabhas and Area Sabhas Strategic Interventions 1. Financial Inclusion: Accessing Bank Credits for People of Telangana 80% of bank deposits are made by the poor, salaried and middle classes but banks give 80 % of loans to corporate and industries and hardly 20% to the poor and middle classes. The story in Telangana is even more critical as most deposits collected by banks from Telangana region are not given to people of Telangana but are allotted in the form of loans of thousands of crores to big business from other states like Delhi, Maharashtra, West Bengal, Gujarat etc. and some to the Seemandhra region. There is an immediate need to ensure that Banks operating in and collecting deposits from Telangana region give adequate loans to businesses and industries from Telangana and have a special focus on promoting micro and small enterprises as per the norms of RBI by providing 25% of all loans to them. This will transform the economy of Telangana and ensure total employment. Socio- economic Impact: 25 Lakh people belonging to the poor, lower middle classes and middle classes in Telangana gain access to banking capital (average of Rs. 2 Lakhs) to start / expand their business, gain greater prosperity and generate additional employment. Hence the State Government should take immediate steps to ensure that people of Telangana get their legitimate share of advances from banks as this alone can kick start the economy of the region (beyond the confines of Hyderabad), generate employment and facilitate transformation of people of Telangana into entrepreneurs, industrialists and corporate entities in large numbers. For details please see Note I: Facts about Financial Exclusion in Telangana 2. Creation of an Entrepreneurial Economy for Telangana Just providing skill training to youth cannot ensure employment as service sector and industry is unable to generate enough employment due to computerization and mechanization. NSSO (National Sample Survey Organisation’s Report has shown that India has experienced jobless growth during the last two decades. One option is to promote entrepreneurship among youth with potential by providing them appropriate training in management (along with the skill training being imparted) and enabling them access to bank loans to start their own micro and small enterprises. Socio-economic Impact: Lakhs of skilled youth with entrepreneur ability and who are unable to find employment will be able to start their own ventures, provide employment to others and boost economic development of the state and the country. With development of entrepreneurship capacities and access to bank credit, all skilled youth with potential will not only be able to employ them self but also generate jobs for others. For Details Please see Note II: Towards an Entrepreneurial Economy for Telangana 3. Reclamation of Traditional Telangana Food Patterns and Reduced Spending on PDS: Food Security Through Jowar, Bajra and Maize Substitution of Jowar, Bajra and Maize (that were traditional food of people of Telangana) for subsidized rice that is being provided by the state government will have five benefits: a) Less burden of subsidy on the exchequer (while market price for rice is Rs. 30 a kilo, Jowar, bajra and maize are available for Rs. 18 to Rs. 20 a kilo) b) Possibility of providing food grain below one rupee per kilo, c) Bring thousands of hectors of fallow lands of Telangana into cultivation, d) Boost rural economy and e) Prevent migration and pressure on cities. Socio- economic Impact: Reduced subsidy requirements on PDS even while bringing down rates for food grain supplied through PDS system, thousands of hectors of land brought under cultivation, boost to agricultural employment and rural economy. Please see Note III: Food Security Through Traditional Food Grains 4. Two Dimensional Approach in Health: Strengthening Government Facilities along with Tapering off Arogyashree Scheme It is proposed that a two dimensional approach is adopted in providing health services to the poor. While Arogyashree scheme could be continued for 10 years to ensure good medical facilities, plans and budgetary allocations should be made to bring government hospitals and dispensaries on par with the private sector during this period and gradually withdraw the subsidies for treatment in private hospitals. This will enable improvement in public health facilities and lead to provision of low cost quality treatment for all that can never be achieved through Arogyashree program that could mostly benefit the private sector. Socio-economic benefits: This will help strengthen public health facilities even while temporarily enabling poor to access quality health care through private facilities. In the long run, this will drastically reduce the burden on the government in providing free universal quality health care. 5. Two Dimensional Approach in Education: Strengthening Government Education System and Availing Free Admissions for Poor Students in Private Schools A similar two pronged approach could also prove to be a game changer in the fields of primary and secondary education. Even with the best intentions and dedicated efforts, it will take at least 10 years to provide enough schools with all the stipulated infrastructure and faculty in government schools to enable them to offer quality education. Hence utilization of the provision in the RTE Act for provision of 25% free seats to poor students in all private schools could enable lakhs of poor students to access quality education and transform their lives till facilities and quality of government schools are upgraded in about 10 years. In Hyderabad alone, it is estimated that over 1.5 lakh students below poverty line will be able to get admission into private schools including Hyderabad Public School, Geetanjali, Gautami, Narayana and other such renowned and expensive schools if the provisions of RTE Act are implemented. This could provide unprecedented political benefits to the government in cities and towns with private schools. As in the case with hospitals, the subsidies for private education can be reduced in about 10 years time once facilities and quality of government schools is improved. 6. Prevention of Communal Violence and Political Polarisation to Check BJP in Telangana Apart from TRS, the other two major political parties in Telangana are the Congress and BJP- TDP combine. In order to gain political ascendency in Telangana, BJP might take its traditional route of polarisation of votes through communal riots. After the unprecedented electoral success in Uttar Pradesh due to riots in Muzaffar Nagar, BJP seems to be experimenting with a similar approach in Maharashtra and in all likelihood may resort to same tactics in Telangana also due to the high potential of communal polarization that could be possible in the area. There are about 100 sensitive areas in Telangana (including 40 in Hyderabad) with a history of communal violence or communal tensions or have the potential for instigation of communal violence even if they presently do not have any history of communal violence or tensions. During the last three years, BJP was able to instigate communal tensions and conflicts not only in traditionally sensitive areas but also in areas like Karimnagar, Kamareddy and Ramgopalpet (Secunderabad) where no riots had ever taken place earlier. If BJP’s political growth in Telangana is to be checked, then steps could and should be taken to ensure that no communal incidences are allowed to take place. With proper political will and instructions to the police, experience has shown that communal incidences and polarization can be effectively prevented. Political Benefits: Would decisively check the growth of BJP in Telangana on grounds of communal polarization. 7. GO- NGO Coordination Committees involving Civil Society Organizations and Religious Groups: Both the Central and State Governments have initiated a number of schemes for the poor, destitute and students that have allocations of thousands of crores every year. However, most such welfare schemes do not reach the intended population due to inadequate publicity. Religious groups, especially among Muslims and Christians have extensive networks through Masjids and Churches that are able to reach out to very large sections of the communities through Friday prayers and Sunday sermons respectively. Similarly, there has been an extensive growth of community based