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INDUSTRIAL ECONOMIST
Cover Story

The initial big strike at Bombay High… The proximity of Gujarat and Maharashtra to the source of production, was a great boon. The states built in quick time large capacity fertilizer, petro-chemical and power plants based on gas and also used gas effectively for a variety of other industries.
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KG GAS - a fair share for south. IE organized a seminar on 19 December on the subject of the southern states making use of the elegance, economics and the eco-friendly nature of gas as a prime source of energy and as a feedstock for urea.
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The way forward…
There was welcome consensus on the urgency to make use of the large production of natural gas from the KG Basin.
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Inklings

KG Gas – promise of plenty: When we launched IE 41 years ago, we pledged to focus on balanced economic development of the different regions.
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Editor's Notes

Case for southern chief ministers to work together...
Activate the zonal and inter-state councils
Unstable equilibrium…
CII partnership summit returns to Chennai
‘Yellow Peas Dhal’ only at Rs. 26 per kg...
Chennai, the beautiful…
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Banking

Banking in Sikkim:
spreading slowly...For a population of 5.40 lakh, Sikkim has 73 bank branches.
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Politics

The lesson from Telangana and other regional movements need to provide greater autonomy for local and regional bodies.
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Interview

SAIL Chairman Roongta estimates Indian crude steel production to cross 100 mn tonnes over the next five years from the current level of 55 mn tonnes...
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COPU chairman K C Deo: Virtual loot in NHAI
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Uday Shankar - CEO, Star India: Cable industry continues to be medieval in this country
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Macro Economics

Economy & markets: outlook 2010. India:
will we have NICE?
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Energy

Shale Gas: The biggest energy innovation of the decade. Why has India failed again?
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History

Durgapur - fifty years ago: A voice from the past – beyond the oblivion.
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Capital Notes

TATA Nano going places
TCS
lone bidder for UK pension scheme
Deutsche bank
top foreign banks investing in India
HUL,
threatened by royalties from parent
More on autos -
VW goes aggressive
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Commentary

Expatriate workers: Notification on expatriate workers hits steel projects
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Highway

A third of all highway
projects stuck in arbitration
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Marketing

Soaps & detergents: HUL arrests market share decline
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Interview: Minister of agriculture & co-operation Sharad Pawar

We are not sitting idle on the price rise issue: Pawar

For agriculture minister Sharad Pawar, sugarcane crisis and price rise issues could not have come at a worse time. Also under attack from the Congress leaders, the Maratha politician is the last man to take things lying down. The NCP chief is making optimum use of Congress' mishandling of Telengana issue to give the bigger ally his piece of mind. At NCP's national convention, his party adopted a resolution against the way the Telengana statehood announcement was made and Pawar himself termed it an 'irrational' decision.
Our New Delhi-Correspondent spoke to Pawar in the Parliament complex and at party's national convention venue and elicited his views on several issues. Read on:

IE: It must have been a tough year for you. Not a good performance in Lok Sabha and Maharashtra polls and then the sugar and price rise issues haunting you as the Union agriculture minister.

Pawar:
It's all part of public life. We should have won a few seats more at Lok Sabha elections. About price rise issue, we have been doing our best. Last year our food production was surplus. The position of our stock was okay. But there came drought and then floods in some states. I have always stressed on working hard especially during rabi season towards increasing the production.

IE: But government actions did not bring in expected results. The price rise continues to deteriorate and there was also the sugarcane pricing policy crisis with UP sugarcane farmers taking to Delhi streets and got the Parliament paralysed?

Pawar:
We all know what you are talking about. We did not sit idle. Our initial analysis was that there would be probably a shortfall of 6 million hectare in the sowing of paddy. It is bound to have adverse impact on production and consequently on availability of rice in the near future. I have been monitoring things closely. I always said it is imperative to plan and take compensatory steps to make good the production losses of kharif crops by careful and judicious planning of the rabi season. I also said there is a good opportunity for ensuring timely sowing of wheat, especially in the eastern region, in states like Bengal and Bihar.

We made it clear that farmers should be supported and accordingly we made arrangements for supply of quality seeds. We also said advantage of residual moisture due to the late rains can also be exploited in bringing more areas under rabi pulses, particularly chickpea and mustard besides rabi jowar.

IE: What about the sugarcane pricing policy? What was the provocation for the Ordinance? Your detractors term it mill-owner friendly.

Pawar: The government and the mills were involved in a legal battle over the basis for determining the levy price. It was in consonance with legal advice that the government brought in a clause in the ordinance. The ordinance issued by the President and the Essential Commodities (Amendment and Validation) Bill we passed later were aimed at removing the ambiguities.

It's true certain sections were pressing for complete withdrawal of the sugarcane ordinance. This would have resulted in a windfall of Rs 14,000 crore for the sugar mills at the cost of the Central exchequer.

IE: But how did the new system of Fair Remunerative Price (FRP) help farmers?

Pawar:
There's no question of sugarcane growers losing anything. Unlike the minimum support price (MSP), under new FRP system now, there will be a responsibility on the mill-owners to give a part of their profit, say about 50 per cent, in advance to the sugarcane growers, irrespective whether the mill-owners make profit or not. So how is it anti-farmers? Those who oppose the new legislation really do not know whose cause they are helping.

With regard to sugar, I have said in Parliament also, sugar was an industry with a cycle of five years – of which there is surplus in three years and shortage in the other two. Even during the NDA regime, there was shortfall in one year and even they had to import sugar. Even then there was opposition, but Atal Bihari Vajpayee was able to convince everyone.

IE: There's another issue cropping up, time and again; you and the Central government have sought to put the onus of price rise on the state governments. Is it like running away from your responsibilities?

Pawar:
We are not running away from anything. Under the given circumstances, the Centre could frame certain policies as regard to supply of food items, but under the given circumstances there are areas where the state governments have to implement policies decided upon.

 
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