Maharashtra, the richest state in India, has projected its estimated GSDP of Rs. 35.81 lakh crore, showing a growth of 12 percent over the revised estimate for 2021-22. This fact has been flouted with due pride on the occasion of Maharashtra Day, celebrated across the state, which was formed on 1 May 1960. However, signals are ample to warn that Maharashtra will have to fix its priorities to maintain the topmost position, already being challenged by major states like Karnataka and Tamil Nadu.
Various surveys have repeatedly pointed out that the pace of growth and development in Maharashtra has been slackening over the years for a variety of reasons. The most impact on the investment environment is caused by political instability in the state ever since the 2019 assembly elections. Several surveys and vision papers have shown that Gujarat, Prime Minister Narendra Modi’s home state, is marching ahead with impressive speed on various fronts. Gujarat’s robust economic growth and stern fiscal management are being studied by some other states but Maharashtra appears immersed in singing praises of its past glory.
It is to be noted that the country’s most industrialized state of Tamil Nadu has ranked third in the list of the topmost states but it has maintained an edge in social and governance categories. The rankings were based by evaluating performances on seven counts — economic, fiscal, social, infrastructure, financial inclusion, environment and governance.
It has been underscored that Maharashtra and Gujarat, created on the same day, have overtaken others due to their economic influence. On the other hand, located in the eastern sector, Odisha has managed its expenses the best, a report has showed. Till a few years ago, Odisha was never in the running. However, its industrial climate has attracted huge investments and labour force, available at cheaper rates. A common observation for all the states in India is that the states are improving their physical infrastructure but the social infrastructure such as health and education are not keeping pace with material growth and development.
There are multiple reasons for Maharashtra to lag behind. The most important is the reluctance of industrial investment to base in Maharashtra on account of local opposition erupting after the announcement of any major industrial project. At the moment, mass protests at Barsu in Ratnagiri district to the proposed refinery project have attracted national attention.
Shiv Sena leader Uddhav Thackeray has announced his plans to visit Barsu on 6 May to mastermind the villagers’ opposition by expressing solidarity with the locals. The police have so far detained over a hundred protestors, including a few women, for opposing the state government’s action to start a land survey in and around Barsu.
The Konkan region is a favoured belt for such projects due to its long seashore and proximity of mega ports like JNPT as well as the proposed Delhi-Mumbai industrial corridor. In the past, a proposed copper smelter project by a private firm as well as and Enron’s notorious Dabhol power project in the 1990s faced stiff opposition. Then came the ambitious Jaitapur nuclear power project and the huge Nanar oil refinery. After that location was scrapped, the refinery is now proposed to come up at the nearby Barsu village. The project is embroiled in politics.
Following a hue and cry, Dabhol project was revived by the Sena-BJP government in 1996 but it could not function at its full potential as the Enron scandal in the US destroyed its viability. Then Union power minister Sushilkumar Shinde made all out efforts for its revival but even now, the plant is unable to contribute successfully to the state grid. The Sterlite management decided to move out of Ratnagiri lock, stock and barrel owing to a stuboorn labour union, which foiled the company’s efforts to operate. Jaitapur nuclear power project was announced to be progressing in collaboration with France. However, some nuclear disasters in other countries and diplomatic complications between India and France over the details of the project have stalled it for a long time.
Benefits of these projects claimed by the government are challenged by the opponents, who claim that hardly any employment opportunities will be generated for locals though its employment generation is stated to be around one lakh direct and more indirect jobs. Their grouse is that ‘outsiders’ grab the employment, leaving the locals to accept mostly menial works.
The opponents warn about the permanent environmental damages once the projects began functioning. They ask one question time and again. Why bring such projects to the Konkan region, which is blessed with verdant mango and cashew plantations, traditional fishing business and a beautiful ocean coast. The chemical industries that are planned can destroy the district’s natural gifts, they feel.
Those observers who refuse to taken either side point out to the reality of the Konkan districts of Ratnagiri and adjacent Sindhudurg, where the working population is mostly ‘outsiders’ as local youths migrate to cities in search of work. As a result, a majority of villages have only children, women and the elderly. This has been happening over the years but no political party has tried to stem the flow away from the region. The villages see some activity only during the 10-day Ganesh festival or in Diwali.
The Ratnagiri Refinery & Petrochemicals Ltd will be an integrated refinery and petrochemicals project, to be jointly developed by a consortium of three Indian oil PSUs and foreign investment. The refinery project was earlier proposed to be developed at Nanar in Rajapur taluka of Ratnagiri district. The plan faced spirited local opposition, which was backed by several environmental activist groups. The then BJP- Shiv Sena government scrapped the plan and denotified the land being acquired for it. With the Maha Vikas Aghadi in power, the state industries department identified Barsu-Dhopeshwar, again in Rajapur taluka for the refinery. The sight is separated from Nanar by a river. In a letter to the Prime Minister, the state said the land did not have any cultivation and hardly any population. Therefore, locating the project in that area would cause little damage to the environment. Moreover, the locals were in favour of this sight and project, too, the letter mentioned. The current Shinde-Fadnavis government is now facing the opposition to the project at the Barsu-Dhopeshwar site and the issue is bound to snowball in a political slugfest. Such behaviour by political parties will harm the state’s long-term interests, threatening its prime position among all the states of the country. Creating public awareness about the advisability of welcoming or opposing industrial projects is the only way to preserve Maharashtra’s march ahead.
