People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)

Vol. XXVI

No. 47

December 01,2002


MAHARASHTRA

 

Regime Presses Ahead With Attacks On People,

SS-BJP Combine Fans Communal Passions

LAST month, the state government led by the Indian National Congress (INC) and Nationalist Congress Party (NCP) completed three years in office. Under the World Bank pressure, the state government has pressed ahead with privatisation of the power sector and other infrastructure facilities in the last three months. At the same time, it has failed to clear the dues of cotton-growing peasants for last year’s purchases, while it is trying to help the sugar barons who are facing a fall in sugar prices. The Monopoly Cotton Procurement Scheme and the Employment Guarantee Scheme, which provided some protection to the peasants and agricultural workers for three decades, are being gradually dismantled.

In other words, the INC-NCP’s state government is trying to transfer the burden of the crisis, triggered by the new economic policy and the drought, on to the shoulders of workers and peasants. Along with this, the internecine conflict between these two parties, and the infighting within both of them, continues unabated.

Taking advantage of the popular discontent caused by these policies, the communal Shiv Sena-BJP combine has started a hectic statewide campaign against the state government’s failures. At the same time, along with Sangh Parivar outfits like the VHP and Bajrang Dal, the SS and BJP continue to fan communal passions. A major communal riot in Solapur and minor incidents in a number of other places are also a part of the communal alliance’s efforts to stage a comeback. The interim Supreme Court judgement, staying the disqualification of seven MLAs who had defected from the ruling INC-NCP combine last June, has also strengthened the hopes of the SS-BJP alliance to bring down the present government.

In this situation, the CPI(M) has gone in for both independent and united actions on various issues, like land, power and the attacks on the peasantry and working class. A report of the statewide land satyagraha organised by the party has appeared in these columns last week.

 

ONSLAUGHTS ON POWER SECTOR

In August-end, the state government came out with a White Paper on the power sector. The main proposals in it were trifurcation of the Maharashtra State Electricity Board (MSEB), with generation and distribution being privatised, leaving the MSEB to look after transmission only. Another proposal was the gradual withdrawal of all cross-subsidies, leading to a uniform rate of power within five years. This would raise the rates for agricultural and domestic consumers substantially, while bringing down the rates for industrial and commercial consumers.

It will be noted that load shedding has reached unprecedented proportions in all districts of Maharashtra in the last four months, causing tremendous hardships to the peasants and other common people. This sudden spurt in load shedding is intended to damn the MSEB in the eyes of the people and thus facilitate privatisation. The figures of power shortage are also being manipulated to serve this purpose.     

While the White Paper proposals were to be discussed with interested parties and people’s organisations, the government has already started with privatisation of power supply in the corporation cities of Pune and New Mumbai. Both are the cities where the MSEB was making a good profit.

The government has also reached an agreement with the IDBI for purchase of power from the Dabhol plant, earlier built by Enron, and now lying idle for the last 18 months. The rate of Rs 2.80 per unit and the purchase of power to the extent of 83 per cent of the plant capacity, recently agreed to by the state government, are in contrast to its own earlier proposal of Rs 2.25 per unit and 50 per cent capacity. The new terms, it is admitted, will cause the MSEB an annual loss of Rs 700 crore and also lead to closing down some of the MSEB’s own plants during baseload hours. The loss will be greater in due course as the rate is linked with the price of naptha as well as the rupee-dollar rate. In other words, it is a diluted edition of the infamous power purchase agreement (PPA) with the Enron.

The Anti-Globalisation Committee of Left and secular parties, which led a successful struggle against Enron last year, is now running a campaign against the said proposals for the MSEB’s trifurcation and privatisation. It is to hold joint statewide demonstrations on November 28, the death anniversary of Mahatma Jyotirao Phule. However, as far as the Dabhol proposals are concerned, while the CPI(M) has squarely attacked them and most constituents of the Anti-Globalisation Committee appreciated its stand, PWP and JD(S) general secretaries supported these proposals.

The sudden haste the state government has displayed in pressing ahead with privatisation, and its volte face in the matter of Dabhol power, are obviously meant to satisfy the World Bank’s loan conditionalities.

 

ATTACKS ON COTTON-GROWERS

For the last 30 years, Maharashtra had a Monopoly Cotton Procurement Scheme that was designed to protect the cotton-growing peasants from the loot of unscrupulous traders. The scheme had been serving this purpose till recently. However, with cotton prices falling as a result of cheap imports, the state government is under pressure to give up this scheme. For the last seven years, under the SS-BJP as well as the INC-NCP regime, the price paid to cotton growers under the scheme was Rs 2100-2300 per quintal, which was higher than the central government’s price. However, the state government has not fully paid the cotton growers for the cotton purchased in the year 2001-2002, even though one year has now passed.

This year, in spite of the sharply rising cost of production, the state government has declared that it will buy cotton under the Monopoly Cotton Procurement Scheme at the central government prices only, doing away with the bonus that was paid earlier. Thus the state government will buy cotton at the average rate of only Rs 1650 per quintal, which means a sharp and direct fall of Rs 500 per quintal from last year’s prices. For the first time, it has also allowed private traders to buy cotton, thus practically dismantling the said scheme and throwing the peasantry to the wolves of the free market.

All this has caused tremendous discontent among the cotton-growers who number over 27 lakhs. This has also led to a number of peasant suicides due to indebtedness, mainly in the backward Vidarbha and Marathwada regions. It is true that cotton productivity in Maharashtra lags behind that in some other states, but this is because most of the cotton belt in the state has hardly any irrigation supply, another failure of the successive state governments in the last 50 years.

 

CRISIS IN SUGAR INDUSTRY

The sugar industry is facing a severe crisis, the immediate cause being the precipitate fall in sugar prices, again due to massive cheap imports, though mismanagement and corruption of the sugar barons has also contributed to the present plight of the industry. Last year, 14 cooperative sugar factories were declared bankrupt, and many more are sick this year. At the same time, licenses are being indiscriminately given for opening new private sugar factories. Nearly 40 lakh tonnes of unsold sugar stocks are currently lying with the sugar factories in Maharashtra. All this has led to an unprecedented crisis, which has severely affected cane growers, cane cutters and sugar factory workers.

The sugar lobby has been dominating the state government for years, with more than half the state ministers and 75 MLAs currently belonging to this lobby. That is why the state government has rushed to the help of the industry. It has further extended its subsidy to the sugar factories by announcing an export subsidy of Rs 1000 per tonne of sugar for the export of 10 lakh tonnes. It has also made several demands on the central government to help the industry overcome its crisis.

While the price paid to the cane growers till last year averaged about Rs 1000 per tonne, this year they are being offered only Rs 560-750 per tonne. As the cane production cost have gone up due to steep rise in electricity and water rates effected by the government itself, this sudden fall in prices means tremendous hardships for the cane growers. This has led to great discontent among the peasants. Sugar factory workers have also been retrenched and their wages reduced or even denied in places. The worst-hit are the sugarcane cutters. The cane-cutters union affiliated to the CITU has been conducting a sustained struggle for their demands, to which the state government has so far not responded adequately.

 

PEASANT RALLY PLANNED AT NAGPUR

The Maharashtra Rajya Shetkari-Shetmajur Sangharsh Samiti, which is a joint struggle committee of Left-oriented peasant and agricultural workers’ organisations led by the CPI(M), CPI and PWP, is now running a vigorous statewide campaign on these and other burning issues facing the peasants and agricultural workers. The CPI(M)-led AIKS and AIAWU have been playing a prominent role in this mobilisation. The AIKS and AIAWU organised a successful jeep jatha on the issue of cotton through Vidarbha from November 12 to 19. The Sangharsh Samiti organised a large, joint Marathwada-level convention of cotton-growing peasants at Parbhani on November 20, in which over 3000 peasants took part.

Now the said Sangharsh Samiti has planned to hold a massive statewide rally of peasants and agricultural workers at Nagpur. The rally will coincide with the state assembly session there on December 12, which is the martyrdom anniversary of renowned freedom fighter Babu Genu. The latter was killed in Mumbai on that day in 1930 while opposing the import of British cloth.

The main demands of the Nagpur rally are payment of last year’s cotton dues with interest, continuation of the monopoly procurement scheme at last year’s prices and a stop to cotton imports by raising the import duty from the present measly 10 per cent to the WTO-permitted limit of 150 per cent.

Other demands of the rally are: payment of Rs 1200 per tonne to sugarcane peasants and the clearance of all their old dues by the sugar factories; establishment of a mathadi board for sugarcane cutters and an increase in their wage to Rs 150 per tonne; withdrawal of the move to trifurcate and privatise the MSEB; end to load shedding and reduction of the electricity tariff hike; compensation for crop losses, and the provision of water, fodder and work in the drought-hit areas; regularisation of occupations of forest lands, grazing lands, government wastelands and vesting them in the names of the tillers; a massive expansion of the Employment Guarantee Scheme (EGS) and a wage of 5 kg of grains plus Rs 25 per day to EGS labourers; universalisation of the public distribution system and a large expansion of the Antyodaya scheme; completion of all incomplete irrigation projects on a war footing; and the strict implementation of the minimum wage of Rs 51 that has been declared by the state government for agricultural workers.

 

WORKING CLASS AND INDUSTRIAL CRISIS

The industrial scenario in the state continues to be gloomy. Thousands of small- and medium-scale industries have been closed down. A number of medium engineering and pharmaceutical factories have moved away from the state. Almost all the big industries have retrenched thousands of workers under the ‘voluntary’ retirement schemes (VRS). The powerloom industry, which provides work to nearly five lakh workers, continues to be in a crisis. Major powerloom centres like Ichalkaranji, Malegaon, Bhiwandi and Solapur report that 30 to 50 per cent of their units are closed. In the textile industry, which has been the worst hit, a number of mills which closed down after promising VRS payment to the workers have failed to honour their commitment. Employment of contract and temporary workers in jobs of permanent nature is rampant. Naturally, unemployment has shot up by several lakhs and suicides of unemployed workers have taken place.

Yet the government continues with its policies of attracting investment from both foreign and indigenous big capital. The recent infrastructure summit held in Mumbai saw the chief minister promising substantial new concessions for foreign investors in infrastructure. Last week also saw the Microsoft boss Bill Gates’ visit to Mumbai. Industrial tycoons and state ministers competed in grovelling before this imperial visitor.

 

The Trade Unions Joint Action Committee (TUJAC) has been consistently campaigning against the government’s anti-labour policies and against the proposed labour legislation changes by the centre in particular. The TUJAC held large demonstrations in Mumbai and in several other industrial centres on October 28. However, the INTUC, the BMS and the Kamgar Sena, which had participated in the Maharashtra bandh on April 25, 2001, have been keeping away from joint actions this time.

 

The TUJAS is implementing the action programme chalked out by the National Assembly of Workers and it is meeting with good response. The CITU is leading in all these actions. Under the leadership of CITU, a struggle of municipal employees for bonus, a state conference and demonstrations of Anganwadi workers, a state-level rally of powerloom workers and the establishment of a new union of auto-rickshaw men were some of the other important independent actions during this period.

 

EDUCATION, JOBS AND FOOD SECURITY

 

In several districts, the Students Federation of India (SFI) has led struggles against fee-hikes, the donation and capitation fee system, and the move to grant autonomy to select educational institutions. The Democratic Youth Federation of India (DYFI) has organised demonstrations on the question of unemployment. Both these organisations led a statewide campaign during the run-up to their all-India rally at Delhi on November 21. Both the SFI and DYFI are slated to hold their state conferences during the next two months.

 

The All India democratic Women’s association (AIDWA) has organised several actions in various districts on the question of the crumbling public distribution system, which is seriously endangering food security. The collapse of the ration system is having disastrous effects on the urban as well as the rural poor; some starvation deaths have also been reported. The AIDWA has also taken up actions against the growing atrocities on women and has conducted a survey on the dowry question as per its all-India call.

 

COMMUNAL CONFLAGRATION

Communal riots flared up in Solapur during the Navratri festival in the first week of October. Cotton mills and spinning mills in Solapur had earlier closed down; the powerloom industry there is also in a crisis. Thus Solapur has the highest rate of unemployed youth in the state.

Taking advantage of this situation, communal fanatics on both sides turned a minor incident into a major riot. As for the local police who the CPI(M) had earlier warned about the likelihood of a riot, they remained passive for the first few days. Nine people were killed, several injured and property worth crores was destroyed. As always happens, the minority community bore the brunt of the riot. It is a matter of concern that the working class of Solapur, which has a good record of communal amity, was also affected this time. The CPI(M), that has a good base among the working class in Solapur, put in commendable efforts to control the rioting.

Apart from Solapur, minor incidents have taken place in a number of towns. While the Shiv Sena and BJP are leading agitations against the state government’s omission and commission, their colleagues in the Sangh Parivar, like the VHP and Bajrang Dal, are busy stirring up communal passions. In the traditional Dussehra rally of the Shiv Sena, Bal Thackeray gave his notorious call for the formation of Hindu suicide squads to fight Pakistani terrorists, and a group in Ambarnath near Mumbai even started training such squads. It was only after the media exposed all this that the state government moved against this outfit.

A campaign against communalism figures in all activities of the CPI(M) and of various mass organisations. In a number of places, party committees have brought together secular people from broader sections for specific anti-communal rallies. The party is also trying to use cultural forms like street theatre and full-scale plays in this anti-communal campaign.