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 The Energy Royalty Issue
 

The Nagaland government recently decided not to share any royalty on crude oil, natural gas and other minerals with the Centre according to an announcement made last Thursday. Nagaland Chief Minister Neiphiu Rio announced that a “new formula” was being worked out for the exploration and exploitation of oil, natural gas and other minerals. “We will take a few more weeks to give it a final shape. I can only say that it is a transparent formula approved by the people of Nagaland,” he said. There can be no doubt at all that this development is bound to whip up debate on the contentious issue of the Centre’s revenue sharing with the States.

According to the provisions of the Indian Constitution, crude oil, natural gas and all minerals and relics below the ground are the Centre’s property. As far as crude oil and natural gas are concerned, there has been a time-honoured policy of the Centre paying a royalty to the State where the crude oil or the natural gas is found. This is not to suggest that the royalties paid to the States have been fair. Not surprisingly, State governments have had to haggle with the Centre for higher royalties. However, what we have in Nagaland now is an entirely different cup of tea. The Nagaland government is saying in effect that there will be no revenue paid to the Centre and that all income from crude oil, natural gas and minerals will accrue entirely to the State. This stance is obviously based on the special status given to Nagaland under Article 371A of the Constitution. It is, however, important to bear in mind that the Constitution is silent on the matter of sharing of natural resources found in Nagaland with the Centre. It is clear, therefore, that Nagaland’s proposal to have a “new formula” for the exploration and exploitation of crude oil, natural gas, minerals and relics hinges on the unique mode of land ownership in that State. According to Nagaland’s customary laws, there is collective ownership of land. Article 371 A shows due respect to this particular customary law. Nagaland could, therefore, insist that this traditional mode of collective ownership would call for a different mode of dealing with what was below the land collectively owned.

Unfortunately, such new arrangements can only give rise to disputes stemming from discriminatory laws. Should such a different formula for Nagaland be conceded by the Centre, it is going to open a Pandora’s Box for the entire country. Thereafter, all State governments will begin to demand retention of the entire revenue from oil, natural gas and other minerals, without any sharing with the Centre. That is the kind of problem we run into when we have special provisions for different States of the Union or even a separate constitution as in the case of Jammu & Kashmir. Once a concession like this is agreed to in the case of one State, it would become extremely difficult for the Centre to cope with the avalanche of such demands from the other States of the Union. Even if the present level of royalty paid by the Centre to the States is inadequate or unfair, there is some wisdom in the Centre being allowed to retain a pivotal role in the exploration and exploitation of crude oil, natural gas and minerals below the ground. If the ownership of such resources is allowed to pass solely to the State government, there could be quite a few problems. Two of them are related to both capital and national security. Most of the Indian States are unlikely to be able to muster the kind of money needed for such exploration and exploitation. This problem would then be tackled by inviting foreign companies with the adequate resources and expertise to take on the task of exploration and exploitation. Most foreign companies would welcome such opportunities since they would have the additional benefit of providing a cover for espionage or diabolic political activities detrimental to national security. If India is to remain the Union of States that it is, it is imperative that it should have some participatory role in all such activities of exploration and exploitation of natural resources that constitute the wealth of the States as well as of the Centre.

 

 Of Medals and the Media
 
India has so far got a tally of one silver and two bronze medals at the London Olympics with at least one more bronze medal assured even if Mary Kom fails to make it to the finals. However, if she does make it to the finals, there is every reason to hope that she might win the only gold for India. If that happens, India will be able to move up from its lowly 41st position by a few notches. As things are, it is indeed unfortunate that a nation of over a billion people have to be content with four measly medals (one of them through a walkover) and the inability of any of its previous medal winners to repeat their feats as Phelps has done in swimming. The Indian media has to take a part of the blame for this with its penchant for speculating about the future. There is so much of media hype about what so-and-so will achieve (on the basis of performances at other international events and the “hard practice”) that they manage to put a lot of pressure on participants. Vijay Kumar, the only winner of a silver medal, has a point for the over-enthusiastic media people. He said that his low-profile build-up and the fact that the media had ignored him (despite his excellent credentials) was a blessing because it gave him all the time he needed to practice hard outside the glare of publicity. But will reporters ever learn?

 

 Combustible northeast of India
 

I ndia’s northeast is the most combustible region. Some 250 ethnic groups are arrayed against one another and New Delhi to fight for their identity, some seeking even an outside-India status. Religion-wise, the proportion of Hindus, Muslims and Christians is more or less the same. Infiltration, mostly from Bangladesh or what was East Pakistan, has only aggravated the problem. Even the Assamese who were given a separate state in 1955 when India was reorganized on the basis of language have become a minority in Assam itself.

The Bodos, an ethnic group which hurled part of its state, Assam, into communal conflagration—the Bengali-speaking Muslims were the target—are far from peace because they have even attacked the relief camps. The Bodos want to get back their land which the infiltrators and outsiders have occupied since the British left in 1947. They also demand a Bodo state of their own, like any other distinctive group in India, even though they wield a lot of authority through their autonomous council.

When some ethnic groups separated from Assam and constituted their respective states—Arunachal Pradesh, Manipur, Meghalaya and Tripura, the Bodos preferred to stay with the state of Assam. But the administration at Guwahati has not been able to cope with the diversity that the Bodos represent. The violence they have committed and the sufferings which Bengali Muslims have undergone have made Prime Minister Manmohan Singh say after his visit to Kokrajhar, the hub of Bodos, that “Assam is a blot on the nation.” Yet why should Assam be singled out for the mess by New Delhi? In fact, the blot is on the centre which is inept in handling the situation in the northeast.

New Delhi’s pet formula is that whatever happens in the northeast is a law and order problem. Already, the army is in overall command for maintenance of peace and has under its all paramilitary forces. Even the state police have to look up to the army which has repeatedly said that the problem is political. Apart from sending some home ministry officials to the northeast, there is very little that the centre has done to sort out what is the northeast.

To administer with a free hand, the army has the Armed Forces Special Powers Act (AFSPA), a draconian measure which authorizes a soldier to kill a person on mere suspicion. Since the overall command has become refuge for the harassed people and the inefficient governments in the region, the administrations, wanting in all respects, depend on the armed forces. Therefore, it is not surprising to hear repeatedly that the army was late to reach the trouble spots.  Assam chief minister Tarun Gogoi has publicly said that the army came late and the centre withdrew nearly half of the paramilitary units when they were badly required.

It is difficult to say why the army took three days to reach Kokrajhar when it is legally bound to come to the aid of civil authorities after a magistrate has sent a requisition. One report is that the army did not want to get involved in communal riots while another is that the overall command at Assam was seeking permission from the Ministry of Defence before acting. If these reports are correct, they raise a very basic question. That is, the army is not bound to assist the civilian authorities, as it is enjoined in the law, but would deal with each case on “merit.”

The matter requires a consensus among political parties but they are busy quarrelling among themselves and avoiding the real issue. Frankly speaking, political parties have no idea how to deal with the situation. Both the Congress and the BJP governments at the centre have been found themselves out of depth whenever they have tried their hand at a solution. Nagaland is the largest state in the region. Since independence there has been a ceasefire between New Delhi and Kohima, both sides negotiating over a status which has the trappings of independence, without diluting India’s sovereignty. Both go over the same exercise of finding a solution, without anything concrete emerging.

Arunachal Pradesh, bordering China, is a state within India. Yet New Delhi “accepts” Beijing issuing a separate visa for people of Arunachal Pradesh and, for some reasons, for people of Jammu and Kashmir. Never has New Delhi stopped those from visiting China who have a separate visa from Beijing.

Manipur is under curfew after sunset. Years of this practice have inured people to such restrictions. But there is Irom Chanu Sharmila, who is on fast for the last 10 years, demanding the withdrawal of the AFSPA. Since New Delhi’s dependence in the region is on the armed forces, it refuses to even relax the rigours of the act. A few years ago a committee appointed by New Delhi suggested the withdrawal of the act but the armed forces had the last word and the centre gave in.

Meghalaya faces the problem of ethnic identity. But people there have tasted peace and do not want to go back to the days of violence. Insurgency is there but New Delhi feels satisfied that the neighbouring countries, both Bangladesh and Myanmar, no longer now provide insurgents any shelter.

One problem accentuating the situation is infiltration. The Congress itself encouraged it in the fifties to increase its vote tally. Then Congress president Dev Kanta Barua told me that they would have Ali (Muslims) and Coolie (Bihar’s labour) from their places and win at the polls.

The Congress should have at least implemented the accord between Prime Minister Rajiv Gandhi and All Assam Students Union (AASU) to detect foreigners and delete their names from the electoral rolls. Assam Chief Minister Gogoi does not want to do so because foreigners give the Congress an edge in elections. The last two elections in the state which he has won have been primarily because of the “voters” from across the border.

The Bangladeshis come to India for economic reasons. Had there been work permits, they would have got them and returned to their home after work. But there is yet no such provision. In any case, their problem should not be mixed with the northeast complexity which is still awaiting New Delhi’s serious attention. EOM

 Kuldip Nayar

 

 
Know what you want to do, hold the thought firmly, and do every day what should be done, and every sunset will see you that much nearer to your goal
Elbert Hubbard
       
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