Lights out

When Maharashtra Chief Minister Vilasrao Deshmukh cast his vote at the Narmada review committee, he made a clear statement on his priorities. By weighing in against further work on the Narmada dam, he seemed impervious to the implications for THE power supply in Maharashtra. At present, Maharashtra faces a shortfall of 15 to 20 per cent of its electricity needs. This is a key factor that8217;s pulled back Maharashtra8217;s growth in the last decade. The Maharashtra State Development Report released by the Planning Commission has warned that considering the state of the power sector in Maharashtra, it may not be possible to maintain reasonable growth rates. The symptoms are already visible. Last summer there were planned outages in rural Maharashtra of up to nine hours a day. Mumbai was threatened with the shutting down of neon lights, airconditioners in offices and lifts in buildings.

The economic decline in Maharshtra began in 1995-96. Its growth rate fell from 7.5 per cent between the mid-1980s and mid-1990s to 4.5 per cent from 1995-96 to 2003-04. When compared to its neighbour Gujarat, which witnessed an earthquake, a drought and communal riots during this period, this decline is even more striking. Since the mid-nineties, per capita income in Maharashtra has grown at 3 per cent, while in Gujarat it has grown at 5 per cent. State domestic product in Maharashtra has grown at 5 per cent, in Gujarat at 7 per cent. Industry in Maharashtra grew at 4 per cent, in Gujarat at 7 per cent.

As the Maharashtra government fails to provide adequate power and infrastructure, it is falling behind on attracting investments. The biggest share of investment in the country since 1991 has gone to Gujarat 18 per cent, with 14 per cent to Maharashtra. Currently, while projects worth Rs 1.1 lakh crore have been announced for Gujarat, Maharashtra has only Rs 0.8 lakh crore worth of projects coming to it. It is clearly time for Vilasrao Deshmukh to change his priorities and focus on growth in his state.