Rapid GSDP growth key for Congress to implement high-value freebies in TS

Anumula Revanth Reddy, the young and newly-elected Congress Chief Minister of Telangana, surprised many by taking key decisions at a rapid pace. Within a few days of taking charge of the government, he has changed the alignment of the upcoming metro project that connects the city with Hyderabad international airport (RGIA) from Raidurgam to the Old City. He has also hinted that the much-controversial GO 111 that protects two major reservoirs near Hyderabad will not be scrapped as announced by the previous Kalvakuntla Chandrashekar Rao-led BRS government.

The other big decision is the cancellation of the much-touted Hyderabad Pharma City, which is spread across over 19,000 acres and located just 25 km away from the capital city. It was the flagship industrial and investment initiative of the previous regime, which touted it as the world’s largest pharmaceutical cluster with a potential to attract nearly $10 billion in investments and to generate 5.6 lakh jobs. But the ambitious project got delayed due to legal wrangles. And it may now slip into oblivion. By taking such big decisions, Revanth Reddy proved beyond doubt that he means business and wouldn’t mind talking tough.

Frankly speaking, Revanth Reddy has no real administrative experience as he has not even worked as a minister earlier. Going by the way he is moving ahead, this lack of experience will be of no hindrance for the young leader. Obviously, the young Telangana needs such a decisive leadership at this crucial juncture.

But it’s better if he takes breathing time and analyses the pros and cons in a rationale manner before taking big decisions, those that will have a bearing on the State’s future growth potential. Before coming to power, the Telangana Congress, which he spearheads, promised a long list of high-value freebies like Rs. two-lakh farm loan waiver, doubling of old-age pensions, monthly financial assistance to women, hike in the amount offered to farmers under Rythu Bandhu scheme, among several others. The Telangana government needs humongous amounts of financial resources for implementing these high-value schemes.

The State government can mop up requisite resources for these high-value freebies only if the State’s economy or Gross State Domestic Product (GSDP) grows at breakneck speed. For instance, the Congress government requires a whopping Rs. 30,000 crore only to implement farm loan waiver. In the past, such waiver promises have turned into a politically-risky game in the two Telugu States.

TDP chief Nara Chandrababu Naidu promised to waive off all farm loans during the 2014 Assembly elections. But after coming to power in the truncated Andhra Pradesh, he failed to implement the promise fully as the cumulative farm loan amount was huge. This failure cost him dearly in the 2019 elections, which he lost to Y.S. Jagan Mohan Reddy, who, incidentally, refused to promise farm loan waiver in 2014 saying it could not be implemented!

In Telangana too, KCR promised farm loan waiver up to Rs. one lakh both in 2014 and 2018. He implemented this successfully in the first term but could not do so in the second term. Though his government started waiving off loans at the fag-end of the second term, a significant chunk of farmers did not receive the benefit. Furthermore, farmers had to bear interest costs due to the five-year delay in the implementation. As a result, several farmers turned against the BRS in the recent elections. Obviously, the KCR government could not go for loan waiver due to paucity of funds. However, this is not the only high-value freebie that his government has failed to implement due to lack of funds.

The Dalit Bandhu Scheme, under which he promised Rs 10 lakh to each scheduled caste (SC) family, and free double-bedroom house scheme to the poor, fell flat. Only a handful of SC families, and that too those close to BRS MLAs or leaders, benefited from the Dalit Bandhu Scheme. Similar is the case with the free 2BHK scheme. This caused heartburn among non-beneficiaries, who turned against the ruling party in the elections. BRS lost power primarily due to the anti-incumbency against MLAs in rural areas and failure to implement some of its high-value freebies.

Interestingly, as Congress promised to waive off farm loans up to Rs. two lakh in Telangana, double the amount that BRS promised, implementing this will be a huge challenge for the Revanth Reddy government as the amount involved is very high. However, the Congress government made its intention clear on the promises it made by implementing its free bus travel scheme for women. This scheme received widespread appreciation. Thanks to this facility, more and more women are flocking to buses.

In hindsight, the TSRTC has not increased buses and bus trips, causing delays and inconvenience to passengers. Moreover, auto drivers are also on the warpath in some places, fearing threat to their livelihood from this scheme. The government should immediately address these issues. Otherwise, the scheme will create negative vibes about the government, irrespective of the stance adopted by women. This experience indicates that the Congress government should take adequate precautions for smooth implementation of all its schemes. Moreover, Revanth Reddy should emulate the precedent set by Y.S. Rajashekara Reddy, when it comes to implementing welfare schemes in such a meticulous manner that all eligible people benefit from them. This will avoid heartburn among eligible non-beneficiaries.

He should also strike a right balance between development and welfare.

I made a similar suggestion in one of my earlier articles when Y.S. Jagan Mohan Reddy was voted to power in 2019 in Andhra Pradesh. But Jagan focused excessively on welfare. If he lands in trouble in 2024 elections, lack of development will be the primary reason for his rejection.

All said and done, Congress’ political future in Telangana hinges on the successful implementation of the welfare schemes that the grand old party promised during the recent polls. And this can happen only if there are sufficient resources. The State government can increase its resource base only through rapid economic growth that in turn can be achieved through the growth of industrial and IT sectors. That way, Telangana’s Industries and IT ministry holds the key to the success of the newly-elected government on the freebies front. This ministry is now in the hands of Duddilla Sridhar Babu. So, the responsibility of putting Telangana on a higher growth path rests on his shoulders.

A five-term MLA from Manthani in the erstwhile Karimnagar district and an accessible leader, Sridhar Babu worked as a minister in Dr YSR, K. Rosaiah and N. Kiran Kumar Reddy governments in the undivided Andhra Pradesh. On that count, he has reasonably good administrative experience which will come in handy now. Incidentally, former Prime Minister P.V. Narasimha Rao won from this same constituency as MLA four times. Sridhar Babu surpassed this record with his fifth win.

Nevertheless, in the last couple of decades, Hyderabad achieved tremendous growth in the IT sector. But Telangana as a State obviously lags behind in the manufacturing sector, which is labour-intensive and hence generates a large number of jobs. This is a grey area of the newly-created State’s industrial, commercial and business landscape.

The Congress government can focus on this area for spurring industrial growth while continuing the current growth momentum in the IT sector. But achieving rapid industrial and IT sector growth requires a dedicated expert team and an effective strategy.

Let’s hope that the Telangana Congress government, led by a calculated risk taker like Revanth Reddy, will put together a good team and goes for the kill on the industrial and IT sector front.

If that happens, Telangana and Telangana Congress will be in good stead.