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Thinking Out of the Box

by Sharad Mohan
Philadelphia, USA

June 23, 2006

Readers Write

 

May 17th to June 6, I had the opportunity to visit my homeland - Patna. It was very short considering it was after 4 years that I had visited Patna. I saw a lot of enthusiasm in the eye's of the people on the street of Patna. There is a clear feeling that something great will happen under Nitish ji's rule. We all pray and wish that it came true!

I feel our IAS officials and ministers are daily giving statements and also talking a lot on policy matter but the money is still not flowing. We have a very talented resource in these IAS and administrative officials - all that is required is to think out of box..

Instead of doing the same thing that is very standard, do something different, for Bihar needs creative planning that will draw investors. We are competing with the rest of India and the benchmark is so high that we have to come out with some outstanding creativity.

Some Out of Box thinking:

1. Instead of opening Special Economic Zones (SEZ), which all other states are doing, Bihar should come out with TEZ, REZ, HEZ, AEZ, HEZ, EEZ and Tier #2 and Tier# 3 IT parks. I will discuss briefly on this issue.

TEZ – Tourism Entertainment Zones. Declare 50 kms width stretch of the entire Bihar-Nepal border from one end to the other as a special area marked for TEZ, HEZ, Hi Tech cities, and EEZ. Open casinos; allow strip clubs, bars, and all the international entertainment facilities available in place like Las Vegas. Except prostitution, all sort of freedom should be given with very liberal policies like Goa or ASEAN countries have for their tourists. It might sound un-Bihari and a foreign concept but then Nepal has that, Mumbai has Chamiya bar, why not accept entertainment in the form as defined in the west and make these zones the most sought after tourist destinations in Asia? All we are doing is to start the flow of tourists by offering something different as we have competition with the rest of India.

REZ – Religious Evolution Zones. Declare major part of Gaya, Patna City and others as REZ. Local people need to be removed from these zones, as like any dam there is displacement, similarly we need to remove the local population and rehab then somewhere else with better amenities .Allow Japan, ASEAN countries and Sri Lanka to build and operate their own temples, Museums, libraries, hotels etc in these zones and operate it. Have it well connected with Raxaul Train Hub.

AEZ – Agriculture Economic Zones. Have Grain Banks, best breed animal husbandry sperm and egg bank, R&D labs and satellite to support knowledge to any farmers across India. Invite Israel, USA.

HEZ – Health Economic Zones. Allow foreign investment in opening private medical colleges, hospitals, and health related institutions. All these zones will operate on the law practiced in the biggest investor countries.

EEZ – Education Economic Zones.

Tier # 2 and Tier # 3 IT Parks: Bangalore, Hyderabad, Pune and Delhi are tier 1 IT destinations and will lose their competitiveness in next 3-4 years because of rising real estate cost and salary. Bihar tier 2 and 3 zones will give IT firms the same advantage that they had when they invested in India 5 years back and they will be in India rather shifting their base to Philippines or east European countries. So in future, if APPLE Corp decides to move its BPO operation out of Bangalore because of high cost in overhead and salary, Bihar tier 2 and 3 zones will offer less costly real estate and salary 60-70% of what Bangalore demands. This can be met by offering good township to the resources working here.

Note these zones should function in the same manner as an embassy, that is, the law inside these zones should be different from the rest of Bihar. The biggest investor of these zones will have option of practicing their own country’s law. This will draw big investors from the west that is always wary of different country tax laws, labour laws or other legal laws. Now we make that easy for them. This will be something really great and they can even set up offices here to operate their offices for the rest of India or even Asia. Bihar can become the back office for the rest of India and in turn, we get revenue and millions of jobs are created.

2. Reform the police by voluntary retirement and reduce the age of the present police force. Give the option to the retiring officials to nominate one of their family members in their place based on the qualification. Change the dress to either European or American police force with all the gadgets. The police force should be divided into 4 divisions. One that is trained for riots and chasing the criminals and they should be equipped with helicopters. Second for traffic control and day-to-day police administration, and a third one for handling business and internet crimes. All should be trained appropriately. This will be the preparation of the ground work for Bihar to invite investment in future when our police will be appropriately deployed and understand the problem better. The last one will be trained to deal with foreign tourists and will be in-charge of all the ZONES mentioned in the first point. They should be highly educated and English-speaking cops.
Budget kahan se aayega? Well, reduce the number of the present cops and have some consulting firm to look into overheads of the present police force and have less but better quality force. A state can definitely afford five choppers and some fast-moving jeeps and mobile phone network for our cops. Business needs to see this face that no state has thought of yet.

3. Power: Enron should be asked to leave Maharashtra and invest in Bihar. For next 5 years, we need 10 Enron-type investment and they should be given single clearance with change in law that any change in government will not lead to re-investigate into once signed MOUs. For the time being, we will have to kill our socialist urge and let them develop the infrastructure and let them sell energy at their own price. If we can afford, we will buy it; if not, will allow them to sell to other states. All we want to do is first let them start and then gradually invite competition. Businesses sometimes have sheep mentality - if an American firm or MNC sees that Bihar has no political problem with Enron, more investment will come and that will itself decrease the price. Even if their current rate is not affordable by resident Biharis, we will still have power plant that will invite business and manufacturing houses to come and setup plants in the state. Law needs to be changed; Bihar is so starved that whatever we get in the direction of infrastructure, addition should be always welcomed.

4. Bank reform: Invite Multinational banks; give them same benefits that they enjoy in their parent countries and ask them to lend money for infrastructure and state’s development. They can set up offices in Bihar and have 50% business for rest of India. We should have no problem with that - all we need is lots and lots of banks to add to our urban and rural infrastructure..

5. Develop 5-7 major townships as NCR is doing. Have Himalayan view townships, Mountain View townships or River View townships. I will leave this section for readers, to come out with some creative ideas to beat Noida or other emerging tier #1 cities.

6. This is just a thought; have to check the feasibility of it. Have a tie up with Nepal and build 3-4 major dams, store the floodwater and with the help of pipeline; sell water to Delhi and other rich states for revenue generation. The only fall out is since entire north India sits on the seismic zone we have to check the risk factor when major earthquakes happen. If the gas can be brought from Iran via pipeline, definitely Bihar can sell its abundant water to Delhi, Mumbai and Chennai and make revenue in 1000 crores plus. (I am talking about floodwater storage).

7. Build a big railway hub at Raxul/Beerganj, as big as any overseas airport. Rope in Lalu ji to carry on this ambitious project and his convincing power to rope in Nepal so that we give from this hub connection to all the tourist destinations in Nepal and Bihar. This should have connectivity to the international airports. Build international airport at Raxaul - so big that it can take care of our tourists and entire Nepal tourism. Nepal should be involved and revenue needs to be shared to make them more involved and partner in our collective development.

I promise we can end up getting $2-5 billion dollar FDI in just 3 years and it will grow. Form a group of 50-60 very talented officials with good accented English and very good business vision and totally in sync with global changes. These people can be taken from our present officials or from business or industry. People who want to help Bihar. Any business delegate visiting the state should be taken care of by these groups rather than ministers. Business means business - no bureaucratic and ministerial draconian protocols. Time to change!

Kahne ko to bahut hai. Sab is article me nahi ho sakta. Each of the topics can be explained in detail, this is just the brief presentation what it will look like.

 

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