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Tuesday, June 05, 2001

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Reconstructing Kutch

THE PRIME MINISTER, Mr. Atal Behari Vajpayee's announcement of a five-year excise duty holiday for industries based in Gujarat's earthquake-ravaged Kutch region, though high on symbolism, is to be seen as a measure with long-term implications. It aims to restructure the regional economy and spur its re-emergence. Yet, the more immediate need - of reconstructing the region through an increased activisation of the State apparatus - should not be circumvented. For, it is in the discharge of this responsibility that the Gujarat Government stands charged by its critics with not taking steps that are commensurate to the magnitude of the January 26 earthquake. In asking the Gujarat Chief Minister, Mr. Keshubhai Patel, to ``remove the sluggishness'' over the implementation of the re-construction activities, Mr. Vajpayee has made it clear that much remains to be done. Given the magnitude of the disaster and the massive tasks ahead in terms of reconstruction and rehabilitation, the Prime Minister's announcement, as well as that by Mr. Patel of a matching sales tax holiday, should be supplemented by a stepping up of ground- level action. In addition, it is imperative that the administration is put in a state of preparedness, given the possibility of yet another natural calamity sweeping the region with the activation of the southwest monsoon.

That the country's overall financial crunch has further complicated the task of reconstructing Kutch is apparent in that the direct financial contribution from the Union Government is a fraction of the Rs. 10,600 crores needed, as estimated by the Asian Development Bank. The unspoken message in the announcements by the Prime Minister and the Gujarat Chief Minister is that there should be a greater role played by the private sector in terms of restructuring the region's economy, either through new industries or re-location, and thereby propel growth. This, however, is a process and is bound to take time. While exemption from taxes is undoubtedly a required form of support for the affected, it still is a dormant measure. A more active role is what is expected of the Government to enable the region to rise from the rubble. Examples of cities and regions across the globe that have re-emerged from calamities are replete with instances of individual initiative, but all have been largely bolstered by the correct Governmental responses. No doubt, donations from firms and individuals across the country as well as from abroad have poured in to help the Gujarat Government and much more has been promised. Yet, the road to rehabilitation is long and, indeed, arduous.

Clearly, the onus now rests, in substantive measure, on the State Government. That the Government, in the aftermath of the earthquake, had not made the right approximations of the magnitude of the tasks ahead and the response-time required by it has to be accepted and corrective action should be taken. Initial estimates had it that the victims could be rehabilitated in a few months. These have now gone awry. The issue of providing temporary shelter is a case in point which reflects the magnitude of the task that still remains to be done. The problem of rooflessness remains, and what makes it more complicated to correct is the present realisation among the State's administrators that the victims would have to be provided with continued support for at least another two years. From a broader perspective, Mr. Vajpayee's visit is also to be seen as part of an image-building exercise by the State Government that has been charged with being lax in its rehabilitation and reconstruction operations. Much of the purpose of the prime ministerial visit would be served only if there is a marked improvement in the performance of the State in providing the salve for the affected millions.

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