Bullet train: Leap of faith

That the 508-km long Ahmedabad-Mumbai high speed train, which is loosely called a bullet train,  will give a negative political dividend to Prime Minister Narendra Modi is a certainty. Yet, this may be the only saving grace for the listless Modi administration on economic fronts in over three years in the office. The cost at Rs 1.10 lakh crore is jaw-dropping, but the spin-offs in a few decades will offset all the financial pain.

THE French Rail Corporation (SNC) in the business viability report had unequivocally stated that a

Shinkansen bullet train

standalone Ahmedabad-Mumbai high speed rail corridor with speed in access of 350 kmph will have to be funded by the government. That it will not make profits for years is certain, which will keep the private investment away, the report submitted to the Ministry of Railways noted, while adding that the world over such endevour has been publicly funded.

Not that the Ahmedabad-Mumbai high speed rail could ever be profitable, the report had stated, and for such a scenario to emerge the Railways would need to spread a garland of inter-connected semi-high speed rail lines to help flow strong traffic. Such garland will surely take a few decades more to become a reality.  The SNC report had set the chill in the Ministry of Railways. The enthusiasm for the ambitious project had been dulled.

Japan is battling deflation. The population is aging. The manufacturing capacity there is in access of local and offshore demands. The capital is equally in access. The Japanese industries have to set up shops abroad to stay afloat. The idle Japanese capital needs avenues to sink in and make money. That China has cheap labour with population still younger along with manufacturing base at a scale which still awes the world long put Japan in quandary. 

But India and Japan are bound by historical bond of culture, besides absence of even an iota of animosity. Indeed, the high speed rail corridor project had been lying idle since the time of the UPA headed by Manmohan Singh. The first definitive agreement between the two nations had also been inked during the times of Singh. Yet, the Congress which swore by Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to win polls and trumpet its brand of politics could never believe in the capital intensive high speed rail corridor. The Congress knew well, the bullet train will hit with bullet speed in damaging the vote base. 

In contrast, Modi believes that the bullet train will help him get votes. And, he's not wrong either. 

THE state of economy since 2011 had slipped into a self-limiting warp. The appetite for private investment had been doused. The sword of fiscal deficit launched P Chidambaram and Arun Jaitely

afterwards into obsession for expenditure squeeze. The economy cried for a spark. This is vintage Modi, the Narendra Modi of Gujarat, that has been unveiled by the ground breaking ceremony of the high speed rail corridor project. Modi, the man who could execute expansion of Sardar Sarovar Project which lifts the flow of Narmada river by not less than 25 floor high building in a course of a few Kilometers, is promising to rediscover himself at a time when his government has to bat out the last few over in which he has to score unbelievably large runs.

Undeniably, the faith of rail travellers in the railways has been left shaken due to spare of mishaps in the last two years. Every train journey now looks suspect. Suresh Prabhu, who had been Minister for Railways for almost three years, though of taking up new projects -- new lines, capacity augmentation and fresh products. He forgot that the Kakodkar Committee in its report long back had cried for immediate modernization of at least 19,000 kms of rail tracks. No surprise, that derailments of trains constitute more than 50 per cent of the rail mishaps, which in turn most likely take place due to poor conditions of tracks. Prabhu forgot his basic mandate and lost the job.

In speed, the Railways has traveled least in the last four and a half decades. Premier trains of today -- Rajdhanis -- were launched in 1969. The inaugural Mumbai-Thane had run at a speed of 30 kmph. The average speed of the passenger trains now is just 60 kmph. The goods trains travel at much slower speed. Thus, the Railways could never gain the confidence, capacity and capability (3Cs) to break free from the status quo.   

THE Ahmedabad-Mumbai high speed rail corridor will give the Indian railways the 3Cs to give the mobility solution to more than one billion people of the country. That hundreds of high ranking railway officials have already gone leadership training is already part of the India-Japan story. The upcoming high speed rail institute in Gandhinagar should be giving India not one but hundreds of E Sreedharan. The 3Cs will help Indian Railways to compete with China for rail projects in South-east Asia and Africa is another in-built sub-text of the story. That IRCON has already executed a few of the long route rail projects in South-east Asia is well known. 

Indian economy in the short term will gain from the pump-priming effect, as Rs 80,000 crores of the total project cost would be spent within the country on civil and associated works, which will generate demands for steel, cement, labour. Unlike the Dadri-JNPT dedicated freight corridor, Indian companies could also be the lead partner for bidding the civil works. Besides, the strong mandate for Make in India will hasten technology transfer in running high speed trains which over the years will have its own spill over effect.

Japan is sinking in Rs 88,000 crores in the Ahmedabad-Mumbail high speed rail corridor. This money is going into a standalone project and it was not available for the existing demands of the Indian Railways. The Ministry of railways will roughly contribute about Rs 20,000 crores in the course of next six years. 

That the money in parts will be returned to Japan beginning 15 years later at an interest of 0.1 per cent was the most low-lying fruit that Modi had to pluck to give the spark to the economy with just about 16 months to go for him to seek votes again.

Rising spate of unemployment in India: Is Modi riding a tiger

BJP top guns are sweating hard to talk gains of demonetization. Hard-selling his book "I do what I do", Raghuram Rajan has  emerged within a few days a nemesis of the BJP and Prime Minister Narendra Modi. Desperation on the back of mainstream media not believing numbers thrown by government to talk achievements is sinking in fast. In three years, Modi seems high on the steroid administered by achievements on borders with China and Pakistan, but quite fragile on domestic front, with unemployment at its peak.

Anand Mahindra is arguably a straight-talking India Inc man. He is also one of a few Indian industrialists who has been expanding his businesses. But he too is not an industrialist who invests in employment intensive sector. He prefers businesses with light manpower. And, so does most of the Indian industrialists, with vision of just immediate future. Expansion of the industry and the consequent job growth happens when industrialists think long into the future with certainty of growth. 

India undeniably is caught in a time when vision is short -- ultra short.       

"In the special economic zones (SEZs) of Gujarat, most liberal labour laws are in practice backed by

world class infrastructure. yet, I've not seen industrialists taking advantage of facilities to invest in employment intensive industries," first vice-chairman of NITI Aayog Arvind Panagariya told Mahindra in a discussion with an intention to genuinely know why Indian industrialists have aversions about businesses which could trigger employment generation.

Before Mahindra could shed light of his wisdom, a senior officer, betraying a sense of resignation, stated that the ministry of labour had engaged the industry captains and sought to know from them what all changes they wanted so that they could take up businesses with employment generation. She rued that no concrete suggestion came. "We talk of labour regulations impeding on industrial growth. Yet, when asked what all regulations should go, there are no answers from the industry," the officer told Mahindra.

At last Mahindra replied, with an admission that Indian industrialists are only attempting to imitate the outsiders setting up shops in the country. "We are best following others. The foreigners are coming and setting up units in the country. We may be watching them out and follow them in the coming years," Mahindra quipped.

The Economic Survey of 2015-16 pegged unemployment at five per cent, a notch higher than previous year. Subsequently, situations have only worsened. The informal sector accounts for bulk of employment in the country. The construction sector has been the bellwether of employment. They lay battered following demonetization. The result was reflected well in the numbers, as the first quarter gross domestic product (GDP) of 2017-18 slumped to 5.7 per cent. Rating agencies rushed to scale down growth projection to 7 per cent. Growing at 8 or more per cent GDP growth rate is a distant dream for at least a couple of years by all accounts.

So, what happens to employments in a country where 68 per cent of population is in working age group. Number of the working population is on an ascent only. Millions of youth are passing out from schools, colleges and institutes with prospects of job market further squeezing. That they would become employer is looking a crude joke after all the talks of Start Up India, Stand Up India turning out to be all about App and portal makers bottled in Bangalore and Hyderabad.

"We've given 80,000 jobs in various government departments in the last one year. But they youth don't remove their names from the employment exchange till they get the jobs of their choices. That explains why there is not much of change in the job data," the Gujarat chief minister Vijay Rupani reasoned at unemployment rising to quite high level.

The organizational secretary of Swadeshi Jagran Manch (SJM) Kashmiri Lal claims that the Chinese goods coming in the country account for 50 per cent of the Indian manufacturing outputs. "Chinese firms are making a clean profit of Rs 65,000 crore ($9 billion) annually, besides having a Rs 7 lakh crore trade value. If only we can replace them with our domestic manufacturing capacities, the impact on employment could be evident," Lal opined. 

But Lal will not admit that the Indian industrialists long back turned into traders of Chinese goods.

So, what happens to the promise of Prime Minister Narendra Modi at a rally in Agra in 2013 that if the BJP was to be voted to power 10 million jobs would be created. The BJP chief answers that

historical riddle with number-crunching from Mudra scheme. A month back, he had quipped that 7.28 crore Mudra beneficiaries have gained from the loans, which now has surpassed 8.25 crores. They're employers also, the BJP leaders would make others believe. But the Mudra beneficiaries are mostly in the semi-urban and rural areas, yet the economy hasn't got any evident shot of adrenaline for demands.

Yes, the stock market is at a record high. With banking instruments offering only an inflation neutral returns and the property option flattened, surplus money is pouring in strong stream to the Dalal Street.

With employments on freeze, Modi may well be riding a tiger.

  

Is genie back in bottle?

Euphoria over lapping Nitish Kumar in the saffron camp has a subtle hint of faultline in the great Narendra Modi script.

THE BJP chief Amit Shah idolizes India's greatest political strategist Chanakya and Hindu revivalist Veer Savarkar. Chanakya believed in a strong and rigorously trained army to expand frontiers of the kingdom and also to ward off foes. Savarkar envisioned homogenous Hindu society, and mostly undertook covert operations in pursuit of his goals. Shah believes that he's a blend of both the historical icons. 

Fired by his expansionist burst of adrenaline, Shah is eyeing to win Odisha and West Bengal. He even thinks that Kerala too will be in saffron kitty at not so distant time. The saffron flag is fluttering all across the North-east. Team Amit Shah is camping determined to uproot Manik Sircar government in Tripura. 

Yet, the saffron expansionist zeal was piped to give Nitish Kumar

lease of life to rule Bihar. Fresh from delivering morbid shock to rivals in Uttar Pradesh, the BJP seemingly acted as the henchmen of Bihar chief minister to help him shed the secular skins. From splashing documents of land deeds dating back to 1990s, Nitish's Sherpa and Bihar BJP's sole anchor Sushil Kumar Modi had been a man on a mission. Suddenly, he had all the revenue records to link Lalu Prasad clan in quid pro quo land deals.  One may wonder what the duo had been doing with the same set of records in their possession during NDA reign in the state during 2005-13.

Central investigating agencies, the CBI and ED, true to their wont of being more loyal than the king, hunted several locations to add thrill to the political drama. Lalu Prasad, convicted for corruption and barred from contesting election, was again certified corrupt along with all his clan members.           

Nitish Kumar and his Sherpa Sushil Kumar Modi delivered the alibi for another dramatic and thrilling swapping of places in the state politics. Kumar is a politician without a party as noted by the historian Ram Chandra Guha. And Sushil Kumar Modi has of late been a politician dumped by his party. Their umbilical cord helps both to remain relevant in the Bihar politics. 

That Nitish Kumar could have been a challenger to Narendra Modi had been proven a pipe dream in the course of political events after the 2014 verdict. That Modi with Kumar in saffron camp is running away with the 2019 poll is, thus, a convenient spin to a story palatable to the people. 

Despite being the deputy chief minister of Bihar for more than seven years, Sushil Kumar Modi had failed to win Amit Shah's approval to become chief ministerial face of the party in the 2015 state elections. Still, he slogged and logged highest number of manhours to stall the Mandal backlash. Shah, the Chankaya of BJP, schemed from the Chanakya hotel in Patna only to flounder and subsequently sink his party to the humiliating loss in the state. Only a year ago, the BJP had been unstoppable in Bihar, with the party led alliance winning 33 out of the total 40 Lok Sabha seats.

Sushil Kumar Modi had been slighted in the run up of the 2015 Bihar polls and thereafter, with team Amit Shah experimenting with new set of nondescript leaders to stage a comeback in the state. That Shah despite being on a whirlwind intensive tour of several states to deepen the foothold of the BJP failed to make his presence felt in Bihar in the last two years made it evident that he had not yet recovered from the 2015 drubbing.

With the BJP ship adrift on the high sea of Bihar, Sushil Kumar Modi had only to strike at the right time to take full control of the party in the state, and that could have been possible only if his aka, Nitish Kumar, was back on his side. 

The Bihar chief minister had teamed up with the BJP to put the genie of social justice in the bottle in 2005. Lalu Prasad, who has been the sole custodian of the politics of social justice in the state, hurtled to the wilderness in the next one decade. 

Time seemed to have been ripe for writing political obituary of the messiah of Mandal. But his nemesis only uncorked the bottle to

give him another day to live in 2013. Once out of the bottle, the king of "MY (Muslim-Yadav)" proved his mettle becoming the largest party after the 2015 verdict. Back in power with two sons -- Tej Pratap and Tejashwi Prasad, Lalu Prasad was remote controlling bureaucracy and gaining political strength each day. 

Time to put the genie back into the bottle had come again. And bottle was readied, but only the time will tell if the genie actually went inside. That saffron juggernaut prostrated before Nitish Kumar is indeed all to see at a time when Amit Shah is seen unstoppable.       

Corleone Lalu

ONE night in late 1990s.

The district police had suddenly become pregnant with the idea of their manhood. The 'Kaptaan' of the police personnel had shared with them the mission idea, that they would be out in the night to crush the head of the most vicious snake in the district.

With the city going to sleep in late evening, heavy shadows fell on the walls of the lanes and by-lanes leading to the den of the most vicious snake. Heavy boots thumped the ground beneath. A few windows opened. Torch flashes fell on the approaching swarm of menacing police men. With rifles slung on their shoulders and fingers on machine guns, they gave a full measure of their might to the third ring of security of the vicious snake. Shots were fired. A few henchmen killed. Scores were hand-cuffed and bundled into waiting jeeps. The second ring too was crushed in quick time. 

The den was panic stricken. The policemen were finally moments away from crushing the head of the most vicious snake. He too had given up. His hopes were lost.

Piercing the thick night with sharp red flashes, an ambassador car menacingly raced into the compound of the den. A man in his 50s alighted. His waistline was bloated, and hairline for all to count. The 'Kaptaan' and the policemen, who had been the hunting wolves of the night, became stiff at the sight of the man just out of the white ambassador. Their faces loosened. The man took the most vicious snake into his ambassador car and sped away.           

That vicious snake was Mohammed Shahabuddin, who had been a member of Parliament from the Siwan Lok Sabha constituency. The police operation was ordered by Lalu Prasad whose wife Rabri Devi had been the chief minister at that time. The man in the ambassador car was sent by Lalu Prasad. "Mohammed Shahabuddin had become a law unto himself. He thought he was bigger than Lalu Prasad. That night Lalu saved his life, but gave a message in clear terms about who was the actual boss," recounted one former aide of Lalu Prasad. 

Siwan knows that Mohammad Shahabuddin is an out and out criminal. He won elections by intimidating voters and rivals alike. He won Lok Sabha elections four times from 1996 to 2004. The law finally caught up with him in 2007 when he was convicted in one of many cases pending against him and sent to life imprisonment. He, thus, was debarred from contesting polls. 

The law caught up with Mohammad Shahabuddin at a time when Bihar woke up to the idea that it had been electing criminals for quite long time. Nitish Kumar propped up by the BJP promised to keep criminals behind the bars. He kept his words, and very soon the dreaded criminals were in jails.

Rajesh Ranjan alias Pappu Yadav, who held on to his den in the Seemanchal of Bihar, spent long years in Tihar jail. He who once literally got one of his henchmen to push a bamboo into the rectum of an engineer became a 'Drohkal ka pathik' during his stay in Tihar. Mohammad Shahabuddin could not carve out an independent fiefdom for himself, but Pappu Yadav was able to branch out in later years.

Lalu Prasad in his heydays was arguably nothing but a replication of Vito Coreone -- the Don of Mario Puzo's trendsetter novel 'The Godfather'. Lalu's empire crumbled with the ascendance of Nitish. The mandate compelled Nitish to crack whip against the criminals and Lalu's henchmen turned politicians.

But Nitish as is true with most of the politicos never pursued any idea to its logical end. He went after the criminals turned politicos, but left them half dead. He went after the crime syndicates, but allowed them to survive. He paid scant attention to policing and improving the infrastructure of law and order apparatus. That he solicited Mohammad Taslimuddin and sought blessings of the mother of the jailed Anand Mohan Singh in the run up to the 2010 Bihar Assembly elections, besides allowing refuge in his party for the criminals from the ranks of Lalu's RJD made it evident that Nitish too sought to borrow the brand of politics of his former aka.

Six years later, Nitish and Lalu are a team. Nitish allowed Lalu to breath again in Bihar politics. He

stayed in power by joining hands with Lalu for 2015 Bihar polls. But in the process, he lost control of the genie that he allowed to come out of the shut bottle. Mohammad Shahabuddin had been running his empire from Siwan jail before being shunted out to Bhagalpur jail. Now, he's a free bird.

With Lalu getting his men back to their respective territory, it may only be a matter of days that Nitish will read the writing on the wall. That his script has awfully gone wrong is no more an idea lost to doubts. He knows better than any that Lalu can't be reigned in for long.

Nitish met Prime Minister Narendra Modi recently. The obvious agenda was the issue of floods in Bihar. But some claim, they did not just talk floods.