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The cost of the DMK
DMK-run ministries such as telecom, roads and environment suffer from several infirmities
Business Standard / New Delhi Jan 08, 2009, 00:18 IST

It has become obvious to even the purblind that coalitions can and often do bring with them a cost in terms of governance and cohesive functioning. When the Left parties were part of the ruling United Progressive Alliance, the Indo-US nuclear agreement was as good as dead; the deal went through only when the Prime Minister decided he wanted it badly enough, and dumped the Left. He did not do the same when it came to labour reforms, privatising state-owned units and charging rational utility prices, all of which the Left had opposed, though the government is now pushing through the insurance Bill which raises the foreign investment limit for insurance companies. While a good deal has been written about the price that the country has had to pay on account of the Left’s obstructionism, much less attention has been paid to the cost of having the DMK as a part of the governing coalition. That cost has been much higher than most people imagine.

The cost of having A Raja as the communications minister is well known. Last year, he gave away scarce spectrum to firms at a price discovered seven years earlier; while the government got Rs 9,000 crore, two firms sold a part of their equity in their new telecom ventures for around six times what they had paid the government. The loss to the exchequer was tens of thousands of crores. The methods used were a global first: after announcing a cut-off date of October 1 for licence applications, the minister decided that only applications received till September 22 would be processed; and the policy on giving CDMA-mobile phone firms a GSM-mobile licence was announced after Reliance Communications had deposited its licence fee. Now, Mr Raja is taking steps that might have the effect of ensuring that the auction for 3G spectrum, which allows telcos to provide broadband speed internet on mobile phones, is restricted to the existing telecom players.

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Mr Raja is not alone. His party colleague, TR Baalu, was pulled up by the Delhi High Court recently because of interference in the work of the National Highways Authority of India and the fact that, under Mr Baalu, it had had five chairmen in two-and-a-half years. The government’s own evaluation of the NHAI found that, last year, it had achieved only half the target for roadwork in Phases I and II. The same NHAI, under a different leadership during NDA rule, had functioned as a modern business entity and managed to finish the major part of the 5,846 km Golden Quadrilateral project. The World Bank now has a report which speaks of huge delays, over-engineering of contracts, and a poor safety record during construction. The Bank now threatens to pull out hundreds of millions of dollars of commitments to NHDP projects.

The environment ministry, now run by two ministers of state (Sevugan Regupathy and Namo Narain Meena) has also been the preserve of the DMK and, like the other ministries, suffers from several infirmities. Doesn’t the DMK want to be known for good governance, or does it not care? And what of the Congress, which accepts all this and more as the price for staying in power?

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Latest Messages
Posted by: arun
yea.. most shameful political party in our country is DMK.. the law college incident, inter-state election violence and recent thirumangalam election where 100 crore rupees had spent.. is enough to tell whats the administration they are doing.. they divided the tamilnadu for their children.. it is ungly party.. finally they made tamilnadu people as beggers.. free meal, free mixy.. free rice,, free tv for votes..
Posted by: jalaramaiah
Present day politics in India, particularly when coalition governments had come to stay in the centre and the states;good governance and probity had become the casualities.The prime considerations of the political paties are capturing power and its retention at any cost . Means adopted is immaterial.These considerations morphed in to vote bank politics in the guise of communal, caste, regional and appeasement policies.National security and integration had taken back seat.God save the nation!
Posted by: Sundar
One of the firms that got the spectrum by paying the Government of India a measly sum, belongs to the Karunanidhi family. They have in turn sold equity for obscene sums of money. All the DMK ministers, ably led by the master of thieves, Karunanidhi have made a business of corruption. Why would T.R. Baalu be interested in the progress of highway projects when he gets his dues up front?
Posted by: Angry_Indian
Why is there not an out pour against the actions of the communication minister? The people have been robber is this not misappropriation. Where are the journalists and noble citizens of India? I am ashamed to be from the state of Tamilnadu...
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