Huge financial, development challenges await new Jharkhand CM

Hemant Soren, the Jharkhand Mukti Morcha (JMM) leader and the JMM-Congress-RJD alliance's chief ministerial candidate, is set to take oath on Sunday. He will be at the helm of one of the most-resources rich and yet the poorest state in India, for the second time.

According to the Centre for Monitoring Indian Economy (CMIE), the urban unemployment in Jharkhand for November stood at 17.4 per cent, nearly double the national average of 8.9 per cent.

Jharkhand too has the highest proportion of farmers in the grip of poverty, according to a Niti Aayog report. Over 45 per cent of farmers are surviving below the poverty line, double the national average of 22.5 per cent.

The unemployment and poverty is no less than a paradox, considering that the state holds around 40 per cent of the country's mineral wealth and 29 per cent of coal reserves.

Mineral production during 2017-18, according to the India Brand Equity Foundation (IBEF), stood at just Rs 2,070.39 crore. Despite having such a huge mineral wealth, the state lags behind and reportedly accounts for only 10 per cent of the country's total mineral output.

The Soren-led government will also inherit poor fiscal health of the state. In 2014-15, Jharkhand had Rs 43,000 crore debt, which almost doubled to Rs 85,000 crore in 2018-19, during the BJP rule in the state, said former Finance Minister P. Chidambaram earlier this month.

Citing the CMIE data, he said around 44 per cent of industries in the state had stopped production.

The primary deficit, according to Comptroller and Auditor General (CAG) increased from Rs 1,015 crore in 2012-13 to Rs 6,020 crore during 2016-17, indicating that non-debt receipts were insufficient to fund government's primary expenditure.

Besides, the state government spent only Rs 59,363 crore against the Rs 72,966 crore budget during 2016-17, the CAG said.

The recent CAG report also pointed to numerous case of corruption, causing damages to the state exchequer. The economy has worsened over the years due to corruption.

The Jharkhand coal scam had according to CAG had revealed that the country lost up to Rs 1.86 lakh crore due to inefficient coal blocks allocation.

One such case, according to the CAG was undue benefit of Rs 3.60 crore given to a contractor "due to three ineligible time extensions with benefits of price escalation, granted by the Chief Engineer of the National Highways Ranchi despite contractor's persistent failure to meet the time schedule of the work".

In another case, the Senior Superintendent of Police (SSP), Ranchi, deputed the police personnel to guard private persons at the government's expense in violation of orders, resulting in non-realisation of Rs 14.11 crore.

A rather fascinating instance has been the commencement of a bridge work without ensuring availability of land for approach roads and non-synchronisation of road and bridge works. Thus, three bridges were lying idle for three-four years, rendering expenditure of Rs 4.66 crore unfruitful, besides blocking Rs 76.82 lakh for more than four years, the CAG said.

Most infamous of corruption cases is of former Chief Minister Madhu Koda, convicted in 2017 for cheating and corruption in a coal block allocation case. Koda was found guilty of allocating a coal block in Jharkhand's Rajhara to Vini Iron Steel Udyog (VISUL) in an illegal manner, which accrued him and his aides Rs 4,000 crore.

(Ravi Dutta Mishra can be contacted at ravidutta.m@.in)

( With inputs from IANS )