West Bengal's Madame NO
By
Aditi
Phadnis / New Delhi, Business Standard, November 12, 2011, 0:28 IST
Later
this month, Mamata Banerjee will have been chief minister of West Bengal for
six months. Time for a balance sheet?
First,
all the things she’s managed to get done — only because they’re easier to
count. She’s taken some positive steps to revive the glory of the Presidency College
of Kolkata, the institution that has given India some of its best thinkers.
She’s managed to defuse the Gorkhaland crisis by offering a tripartite
agreement, paving the way for the setting up of the Gorkhaland Territorial
Administration (GTA) — an elected body for the Darjeeling hills.
But
most of all, she has managed to establish a reputation as the most vociferous
critic of the United Progressive Alliance (UPA) within the UPA.
When
the Centre increased the price of LPG earlier this year, Banerjee first
resisted (“the Centre did not take us into confidence…” and so on). Then she
took on a mien of martyred indignation (“the state government will bear the
burden of the increase in LPG prices”) unconcerned about the fact that the
state government’s finances are in no shape to take on the burden. She
threatened to withdraw from the UPA over the current round of petrol price
increase, only to recant later.
A
Union minister has referred to Banerjee as a compulsive populist. It is hard to
dispute this description.
Take
her government’s attitude towards the price of electricity. West Bengal is
considered a role model in power sector reform. The West Bengal State
Electricity Board (WBSEB) was trifurcated as part of power sector reforms that
began in 1985. In 2005-06, the state also corporatised transmission and
distribution. There are three power companies in the state now, carved out of
the electricity board that together showed a profit of over Rs 300 crore for
2010-11. The government did not privatise: and those employed by power
companies (30,000 or so employees) are the only ones to get their salaries
regularly because they don’t depend on the state government.
But
things can change very fast. Demand for power has been rising and so has the
price of coal in a state that depends mostly on thermal power. With the massive
electoral victory in her pocket, Banerjee could have increased the cost of
electricity in the first week of assuming power without any difficulty.
Instead, after she took over as chief minister, one of her first meetings was
with the power secretary and her bottom line was: electricity prices will not
be increased. In Kolkata, the only area where a private sector entity provides
power, the cost of electricity was increased in April 2011 in sync with the
cost of coal, and it is likely to increase again. In the summer of 2010, West
Bengal had a peak demand shortage of between 500 Mw and 700 Mw, which is
expected to go up to between 800 Mw and 1000 Mw this summer. A perfectly
healthy sector is going to be driven to sickness: because Banerjee doesn’t want
to become unpopular.
But
what she doesn’t realise is her troops are making her extremely unpopular.
Somen Mitra, a Trinamool Congress (TMC) MP, took the unprecedented step of
bypassing his own party to complain to Prime Minister Manmohan Singh in a
letter about the activities of chit fund operators in Parliament — an important
MP from his own party is a big chit fund “entrepreneur” and was admitted to the
TMC by Banerjee only recently.
The
biggest problem (although it is not clear if she sees it as such) is: Banerjee
is TMC and TMC is Banerjee. Take her handling of the Maoist problem in the
Junglemahal region. Subhendu Adhikari, described by TMC watchers as the man of
the future, organised the TMC’s victory in east Midnapore. Adhikari ensured the
Left was routed in this area using his supporters, but also the rather more
persuasive powers of the gun. He is considered intelligent, popular and
ruthless. In Banerjee’s dictionary this spells threat. So, she bypassed him and
asked another leader Mukul Roy to handle the Junglemahal problem. Roy made no
headway. So now Adhikari is back.
The
thing is: no one knows who is in and who’s out. So the impulse is to ensure
there is enough for dinner tomorrow, for who knows what might happen at
breakfast today?
For
the moment, Banerjee has little to fear from the parliamentary opposition. The
Left Front’s disarray is embarrassing. Ill-health dogs former Chief Minister
Buddhadeb Bhattacharya, especially ahead of party meetings. The Left trade
unionists are lethargic, missing even the opportunity to mobilise state
government employees who are now beginning to get annoyed at the fact that
their DA has not been revised because the state government doesn’t have the money.
But
the challenges are snapping at Banerjee’s heels. West Bengal will see panchayat
elections in 2012. How will the TMC fare? Will these elections represent the
first glimmers of a Left comeback?
If
Banerjee goes on like this, she will be the one to have scripted it!