The contrast in evolution of two chief ministers

The contrast in evolution of two chief ministers
While YS Reddy has changed track, Karnataka’s Dharam Singh is paying for his indecisiveness

The Financial Express

If a survey is conducted today to rank chief ministers on the basis of their performance, the Karnataka chief minister, N Dharam Singh, would probably find a place right at the bottom of the list. The Congress-Janata Dal (Secular) coalition government that he leads has remained, at best, static ever since it came to power towards the end of May. He set a record of sorts late last week, when he finally expanded his cabinet by inducting 20 ministers — after a delay of more than seven months.

Lack of proper governance in the last few months is proving to be costly for Karnataka and, more importantly, to Bangalore, when it comes to attracting investments. The city has been in news more for its crumbling infrastructure rather than its IT prowess. So uninspiring has been the government’s response to urgent calls for improving infrastructure that companies are beginning to desert Bangalore altogether. Consider this:

o A survey conducted by international real estate consultant, Equis, among 150 multinational companies planning to invest in India, shows that most respondents were concerned about the infrastructure in Ban-galore and are wary of investing there.

o Chennai has overtaken Bangalore to become the back office hub, according to Nasscom chief Kiran Karnik. The reason — infrastructure has not kept pace with the growth in the IT sector and Karnataka’s efforts to ramp up infrastructure have not worked.

o Leading IT research major, Gartner, in its report IT Outsourcing to India - Analysis of cities has said that Chennai and Hyderabad would replace Bangalore as the default outsourcing destination by 2010. Better infrastructure and political support are among the factors that have tilted the scales in the favour of Chennai and Hyderabad.

In fact, some of the actions, or rather inaction, of the state government have led to a surprisingly amusing reaction from industry. When the state government asked Bangalore International Airport Ltd to reduce the project cost by a little over Rs 100 crore, one would have expected the company to threaten a walkout from the project or, at the least, register a protest. Instead, the company, which has been selected to build the international airport in Bangalore, welcomed the request, cheekily saying that it is happy that the government is finally acting on the project.

Why this sudden decline in governance on issues concerning industry? In fact, the genesis of this issue lies in the recent Assembly elections. The polls in Karnataka saw the industry-friendly S M Krishna government losing its majority. Similarly, Chandrababu Naidu, who put Hyderabad in the global IT map, lost the elections in neighbouring Andhra Pradesh. Their defeat was interpreted by the polity as anger among the masses for their hobnobbing with industry at the cost of farmers and the common man.

In fact both AP chief minister Y S Rajasekhara Reddy and Dharam Singh started off by projecting a farmer-friendly image. Dr Reddy, too, was initially accused of ignoring the requirements of industry. His government took extra care not to be seen close to industry. But within a few months of coming to power, he changed course and began to court industry. He rightly realised that attracting industry and taking care of the welfare of farmers/common man was not a zero sum game.

A fortnight ago, Satyam Computers announced setting up of its new campus in Vishakapatnam — a move that signals a clear vote of confidence in Dr Reddy and his government. This is in sharp contrast to threats by IT majors, such as Wipro, to aim at expansion outside Bangalore.

Mr Singh could do well to learn from his counterpart in Andhra Pradesh. It is true that he has a very demanding and a farmer-centric coalition partner. But rather than discreetly blame the coalition partner, they could do well to work together. The Congress can promote industry while Janata Dal (Secular) can ensure that the agriculture sector is not ignored. A balanced development can thus come about in the state — something the previous government had ignored.

A workable master plan to set right the infrastructural shortcomings and a sincere statement that the government is in favour of industrial development, apart from giving its due to the farmers, is an urgent need of the hour for Bangalore to retain its place in the investment map.

As head of the government, Dharam Singh and the Congress, will be losers if remedial measures are not taken. The BJP has been gaining ground in Karnataka and if the state government’s current performance continues, the party’s dream of forming its first government in south India may soon become a reality.