MC Interview: Chhattisgarh Deputy Chief Minister TS Singh Deo expresses caution about large industries that rely on raw material mining

 MC Interview: Chhattisgarh Deputy Chief Minister TS Singh Deo expresses caution about large industries that rely on raw material mining

According to Deo, Congress is not depending on handouts to win over voters; rather, the goal of the welfare measures is to put more money in the hands of the state's most underprivileged citizens.

Vote-bound There is a fierce debate about welfare or freebies in Chhattisgarh, which is predicted to expand at an 8 percent annual rate in 2022–2023 and has a 2.99 percent budget deficit in the current fiscal year—below the Reserve Bank of India's mandate. TS Singh Deo, the deputy chief minister, supports this action, referring to it as the "empowerment of people" and outlining his ideas for attracting investment to the state. "We are wary of large-scale industries that rely on raw material mining," Deo states, noting that the state's substantial forest cover creates opposition from both the government and the communities to avoid overusing the state's mining resources.

"As far as people are concerned, we are not in a position to open up all of our property to everybody who wants to come and establish an enterprise. Deo continues, "We would want to be extremely picky.

Prior to the first round of voting on November 7, Deo discusses a number of topics, including the state's approach to industry and the choice to return to the previous pension scheme.

Takeaways from the Moneycontrol interview:

Chhattisgarh has performed better than other states, whether it is lowering the budget deficit or having lower inflation than the national average. How much do you think the state government's economic achievements contribute to the election mandate?

Even though this is the foundation for all social sector obligations and developmental activities, very few individuals investigate these realities. Nor have we overborrowed or overdrawn. We don't owe more money than we can afford to pay off with our monthly recurring income. Nor do we have excessive debt. Spending has been directed toward the population group that need the most assistance. Chhattisgarh has accomplished far more than is likely recognized on a national or international level.

Many international businesses have indicated that they would want to open offices in India. Would you be interested in suggesting Chhattisgarh to firms wishing to follow in Karnataka's footsteps?

When a large industry depends on raw material mining, we are wary of it. We have a lot of forest cover; it makes up between 41% and 42% of the state's total land area. Both the government and the villagers are very opposed to overusing the mining resources found on forest territory. It is also evident that business is drawn to low-cost land, and among government land, forest land is most likely the least expensive kind of land. Villager opposition to mining occurs for every resource extracted from forested regions, whether it bauxite, coal, or iron. Furthermore, the large enterprise has ignored the concerns of the locals even on private or forest property, despite the fact that they need to give priority to the people they are initially displacing. It seems that the industry is hesitant to give it top emphasis.

As far as people are concerned, we are not in a position to open up all of our property to everybody who wants to come and establish an enterprise. We want to be very picky. Establish trust among the populace first. Only then, when they are prepared to engage in industrial development initiatives, would a state like Chhattisgarh be able to go in that path.

To win Chhattisgarh, Congress seems to be relying on social programs, or what many refer to as doles. Does the state have the financial resources to pay for it, and if so, what would you give up to make the difference?

It is not a dole, in my opinion. Given Chhattisgarh's economic circumstances, the state's GST (goods and services tax) revenue did not decline even during the epidemic. People hold money in their possession. The bottom-up influence that may have a trickle-down effect with bigger industrial units also participating is what we are seeing in Chhattisgarh. The lower segment of the population, which includes farmers and forest residents, has benefited greatly from government investment. We have been successful in giving that group of the poorest people buying power because almost 40 lakh people have been lifted out of poverty. We are focusing on the bottom-up approach, but there are also chances available for those who want to start their own businesses.

How do you feel about providing "freebies" before to elections?

You tell the public what you want to do for them over the following five years during election season. In the next five years, we want to accomplish the following for the people. While some may refer to it as a freebie, my colleagues and I refer to it as empowering the people by increasing the wealth of the group that most needs help. A cylinder that is subsidized will help the middle-class housewife as well. By avoiding families from having to take money out of their wallets to educate their children, we can empower them by offering education, especially technical education.

Has the decision to return to the previous pension system (OPS) been implemented in Chhattisgarh? And how will this decision affect the state's finances, in your opinion?

We have put OPS into effect. Furthermore, it won't have a detrimental effect on the state's finances in the relatively near future—that is, during the next 20 to 30 years—instead, it will have a beneficial one. The National Pension System (NPS) allows you to contribute 14% of your income to a national fund. The state government is not able to utilize this fund; instead, the federal government borrows money against it to finance various initiatives. Although this model is being projected by economists as being healthier, we view it as detrimental to the state because it diverts state resources, specifically 14% of direct public funds allocated to salaries, from the citizens' ability to spend their money and instead places it in a fund that will be utilized by the federal government.

Secondly, OPS offers a lump sum payment upon retirement, meaning that we do not currently pay 14% of all government employees. This implies that we might save up to Rs 2,000 crore annually. Thus, although there are savings now, there will also be savings over the next ten or so years. After three or four decades, say in 2060 or 2070, there's a chance that the number of government employees may rise even more, at which point you'll have to pay a lump sum when you retire. In light of this and taking a balanced view of the situation, the state government is in a better position. Moreover, we might place this money in a state fund and use it for state development rather than donating it to the Center.

Which three crucial economic measures, in your opinion, might Congress use to win the Chhattisgarh elections?

Three is not enough. If I had to choose just three, however, I would start with what we do for the farmers—buying crops, such as maize, sugarcane, and paddy—among other things. We intentionally target the 75% of people in rural regions who work as farmers because of their numerical dominance. The next group is youth, who make up two thirds of the population. Of these, 40% are under the age of 18 and do not vote. As a result, we have significantly improved student outcomes by offering high-quality education via Swami Atmanand English and Hindi language schools. Additionally, we have declared that other schools will be brought up to that level, so that is a significant argument we are putting out. In connection with education, we have implemented a stipend for young people without jobs in the state, as well as the KG to PG plan, which aims to provide free education—including technical education—to those who are less fortunate financially. Third, women, who make up half of the state's population. We are enabling the purchase of raw materials at a Minimum Support Price via self-help organizations, which will increase the families' income. Based on their demographics, we are concentrating on three main population groupings and giving Chhattisgarh residents more economic power. This is also evident in the fact that the state is outperforming most others in terms of economic management.

According to experts, the Congress ought to win Chhattisgarh handily. What number of seats do you think the party will win?

The Congress would first make the error of believing it is in a comfortable situation and becoming complacent. That is when a pitfall begins. You should never, ever assume that you are at ease. Every game is a fresh game, and every battle is a hard struggle. This game is brand-new. The group in front is not to be taken lightly. They are not absent. Both the Congress and the BJP have consistently maintained a 30-32 percent vote share in these elections, and the vote disparity that determines the outcome of each election ranges from 0.75 percent to almost 2 percent. The last time, there was a 10% difference, which resulted in a resounding win for Congress. However, there ought to be no room for complacency. When it comes to the total amount of real work done on the ground, Chhattisgarh has performed better over the last five years than the administrations of previous decades. If Congress were to get less than two-thirds of the vote, or 60 out of 90 seats, I would be dissatisfied.