Anthony govt focuses on education, power sector

Hari S Kartha

The United Democratic Front (UDF) government in Kerala, headed by A K Anthony, has completed 100 days in office. But unlike all previous governments, there were no celebrations this time. All that marked the occasion was an advertisement in the local print media.
Surprisingly, no new scheme was launched. The reason—the fiscal crisis haunting the Congress-led ruling coalition. Ironically, the fiscal crisis came in as a handy political weapon for Mr Anthony in putting down the Left Democratic Front (LDF). This was done through the white paper on state finances, released during UDF’s first month in office .

The fiscal crisis seems to have served as an anticipatory bail for Mr Anthony and his colleagues for their shortcomings. The resource crunch has also forced the state to redefine its role from an entrepreneur in Kerala to a facilitator. In other words, private capital and privatisation, though phased, have been acknowledged as the only option for progress.

The UDF also undertook a realistic exercise when the state’s annual plan was pruned. However, the revised state budget presented by finance minister K Sankaranarayanan failed to rise to the occasion, although it did envisage some corrective steps.

Whenever political considerations and economic requirement converge, Mr Anthony seems quite liberal. For instance, he sanctioned 50-odd medical colleges and an equal number of dental and engineering colleges. It was alleged that certain communities had been favoured. Nevertheless, Mr Anthony claims that the most important decision of his government during the first 100 days was the opening up of the education sector.

Focus on power sector is being reportedly done to satisfy the Asian Development Bank which has put power reforms as a precondition for aid promised.

The UDF has decided to set up the state power tariff regulatory commission. As soon as the Anthony government took over, commercial and domestic consumers were burdened with a 25 per cent hike in power tariff. “Only a 90 per cent hike would help bring the state electricity board out of red,” argues electricity minister Kadavoor Sivadasan. Also, to help the electricity board make both ends meet, there is a move to give up claim to the costly thermal power from NTPC’s Kayamkulam plant and go in for cheaper power. It was with view that the Silent Valley hydel project, abandoned two decades back, was sought to be revived. The UDF is also considering giving a green signal to KPP Nambiar’s gas-based Kannur power project.

On the industrial front, quite characteristic of Kerala, there has been much talk and little activity. The scenario is no different even in infotech. However, all hopes are pinned on industry minister P K Kunhali Kutty. In fact, much energy and money was spent by the government to organise Samavayam-2001, a meet of non-resident Keralites (NRKs) in Kochi last week. Mr Kutty says things will change once investment proposals start materialising.

One thing that’s quite refreshing is the change in the state’s attitude towards the Centre. Gone are the days when under the LDF, the state had constant ego clashes with the Centre. Mr Anthony has earned tremendous goodwill among Union ministers. This, in due course, may auger well for the state.