Ad Here  
Like Hinduism: many paths to reach God... Polls and promises Nuclear power at the nucleus Colour-Chem’s colourful KRVS All eyes on Sankara Nethralaya A yen for wastage… Protest masters... Shipping woes of Chennai companies Godspeed, Chief Minister JJ Cleaning Ganga – relocate tanneries and install electric crematoria Quality silica from Neyveli SoA @ 80 Liberal imports idling indigenous capacities Auto components surge… Computation of GDP – conundrums continue PC’s preference for professionals Muffled voices for merit… A more liberated TN… PPP mode for upgrading Corporation Hospitals The rise and rise of KCP The Jan Dhan bonanza Tatas moving out of urea production... More tributes to GR Bihar elections - the Rajaji formula worked A Grand Finale for SN’s MS centenary at the US… Shanti and Sadhana through Music Making ‘my Amaravati’... Readers' Mail Build close rapport with business leaders Modi storms Silicon Valley Haul over the coal Delhi returns to BJP Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Tatas moving out of urea production... When TN politicians can emulate Kerala's GM Technology at last! For whom the MIDS bell tolls? Online not in line with brick and mortar businesses... Shaming of Tamils by Tamil farmers at Delhi Poor representation for Kerala and TN in Cabinet Where a state respects its litterateurs… New IT products of Ramco in the pipeline… Make standards certification mandatory... L&T- the specialty of special purpose vehicles The ‘Jayanthi Tax.’ Delhi is distant Building loyalty through the stomach A C Muthiah – his munificent bequeaths to science Secularism and anti-Hinduism More Shakthi to Das’ elbow Reliance’s TV – 18 ready to launch Tamil News Channel The Gulf aviation boom TIAM turns a full cycle Eternal support for capitalisation of PS banks Cutting the nose to spite the face L&T: focus on infrastructure and more infrastructure… Rs.1600 crore paper board plant of TNPL Why land prices zoom in TN? Gas is the way forward TGS- The king storyteller Marketing expert Balagopal is no more How Air-India loses customs... Rahman at CIC Land reclamation from sea appears cheaper! Modi and the lady Of course, Gujarat is vibrant London, London Narayan Parliament in paralysis... CSR and CMI: promise of another Srinivasan Ramanujan... Valli, they are more marginalised Naidu’s return augurs well for Seemandhra Welcome focus on core competence Boy, can you beat these? IPL type auction for VCs? ONGC at KG Basin Breaththrough in malaria control Robber barons everywhere to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Five star activism stalls development activity B H Kothari - a tribute Contrarian cousins Measuring roof tops in terms of KW/MW Editor's Says Kudos to NDTV... Tribute – Manikam Ramaswami More Shakti to resource mobilisation... CIPET hqrs to stay at Guindy – for the present? Discoms deserve better… Infrastructure funding – lessons learnt Sweet news for TN sugar mills MHC should not return to its old indisciplined ways A think tank for Chennai The Swadeshi Trump Padma Bhushan for A Ramakrishna Bihar – Nitish Kumar adopts the Lalu model IAS invades NDDB... Welcome thrust on trade in Modi’s foreign visits... No Maha Koottani in TN... Waning interest in public discussions… No mega rail project for Tamil Nadu China invests in India Telangana in top gear… WTO Meet: resolved to meet again The few handicaps... Inflation: are we emulating Argentina and Brazil? Odisha: spectacular win by Naveen Patnaik Shale gas and its shallow future Fortune 500 review No engine for this car Kinetic Karnataka An informal presentation - analytical, forward locking... Focus on quality of power - its only around 170-180V Streamlining mandatory third party cover Adharma of opposition politics Delhi Chalo... Funding the un-funded TN – agglomerate land holdings without alienating ownership Revive development banks... Towards speedy justice Vibrant Gujarat Sweeter prospects for sugar Plummeting profits of PSBs Preserving for the future Fall in crude prices help in oil sector reform Solar thermal shines… When Ratan Tata visited SRM There was flood of milk. Reason: no milk commissioner! Not just in-laws (and outlaws); they’ve renowned academics at the helm! TELANGANA at last…BUT Gay abandon in pricing Lalu’s envy, India’s pride Adapt Vajpayee dinner diplomacy When the President was rendered homeless… Medical costs hit the roof... R Sridhar steps down as CEO of Shriram Capital Things happen by accident and not by design... Tribute – UCAL Selvan… Intellectual of rare qualities Tax agriculture Excel Generators provide the vital back-up Poor quality of university VCs Which side are you, Montek? Why this malaise in medical education? Tribute When online building permits work…. The balancing act …and of a popular trade leader Lesson from Chandrababu Naidu Tihar, Puzhal not different from Parappana Agrahara He saved millions from starvation... CRS, a jewel among managers, is no more. Recognition to role of NBFCs.... Fortune for Indian Airlines A proud Madrasi Maximising the micro pricing … The Ports’ Pasha expands into Tamil Nadu EEC at the National Media Centre TN accounts for the largest recruits by the IT sector Banning booze... The sea- saw battle continues... Welcome changes that testify to Jayalalithaa’s return to health Should we change the official year? A friendly business group S Ramanathan – a versatile musician, musicologist A professional at the helm of IRDA... Kulandai was a giant Permanent secretariat for TN GIM Where is Rajaji? Tribute – M V Murugappan Remembering Indira Sivasailam... Alexa – Talking Wikipedia A welcome initiative by the judiciary Insurance companies bleeding, yet no decision on increasing FDI limit! For whom the bell tolls? Cement prices continue to rise… IPL - no surprise this scam Airlines in India: cost and space Mu Sigma – is no more The brown list of Venkitaramanan Another Indian music maestro at the UN Whistle-Stop Tour of Raghuram Rajan West Bengal: mindless malignancy A rich pool of talent not utilised…. The power-full Hindujas Engineering seats go abegging TN-leverage strength of BHEL, NLC... The nuclear option Roaring Ro-Ro facility EVM is tamper-proof The rise and fall of Annamalai University The why of tax incentives Moily’s bold thrust Welcome GST Increasing non co-operation of state leaders Multi-faceted Venkat Solar, solar everywhere … When nations steal growth from one another… A Grand Finale for SN’s MS centenary at the US… The ‘Ayyo-yes’ is no more Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Strengthen the base... Convulsions in The Hindu Air Asia India will set new benchmarks for budget travel Come elections, come advertisements... S V Raju – a ‘good’ true liberal Mersal magnified Dr C Rangarajan returns to Chennai Don’t seem to feel the pulse… GNS - 100: our first subscriber Paytm karo... This scant respect for Law Music happens Demise of a media baron... F C Kohli - his concerns all embracing Editor's Notes Diamond jubilee of Egmore Samskrt School The star of Spencers is no more Wanted: a second airport for Chennai Silver Years of Madras Musings Small units prefers to remain small... More heat than light An enemy’s enemy is a friend A glass full of corruption An inexplicable neglect Naidu will soon build a new Hyderabad When small is no larger beautiful.. Limit foreign borrowings to hi-tech, export potential projects... Delhi is distant… Sri Lanka votes for change Return to king coal for urea... Noble nonagenarians... Revving up the manufacturing sector Align crops to agro climate endowments… Quality education through the PPP mode Pharma – overdose of copying Wise Presidents Road development slows down Tough task taking states together He continues the focus on social amelioration Put expensive assets created to use... CII projects higher growth… Russi Mody – a tribute Scientists urged to take up farmer-oriented research Fuel for thought
Increasing non co-operation of state leaders

A sad experience of the coalition governance at the Centre is the increasing difficulty to get the cooperation of regional political parties. The National Development Council meets rarely; when it does, it has not been able to ensure attendance by all chief ministers. Even those who attend often differ violently with Centre’s approach. Remember Tamil Nadu Chief Minister walking out of the NDC meet last time?  

Central Ministers who used to frequent state capitals in the past to explain policy issues do not get audience with state CMs like Jayalalithaa. Senior bureaucrats in Delhi also do not bother to visit state capitals and interact with their counterparts. Of course in a leader-dominant set up other ministers and bureaucrats do not wield much power. With over a dozen shifts and drops in the portfolios of the state ministers in Tamil Nadu, they do not dare interact with the Centre.

This lack of collaboration leads to paralysis of administration. This is best exemplified by the recent imbroglio over the pricing of sugarcane. UP and Maharashtra witnessed a serious confrontation between sugar mills and cane growers. With high production of sugar in successive years and bulging stocks,  sugar prices fell steeply in the open market. Sugar mills burdened with large arrears for sugarcane purchased, are not in a position to pay prices for cane at the same level as in the previous season.  Thus they were forced to delay commencement of crushing normally done during November. State governments of major sugarcane producing states were in no mood to find a quick solution and were content to pass the buck to the Centre. The latter accepted the recommendations of the Dr C Rangarajan Committee to decontrol sugar distribution and pricing and also suggested a formula to share surpluses in the ratio of 70:30. This was a fair recommendation that safeguarded the interests of the cane growers and mills; but state chief ministers were unwilling to give up the prerogative of advising increased minimum prices of sugarcane. The grower lobby obviously is in no mood to accept any price lower than that of the previous season. Thus the burden was fully passed on to the Centre in the form of interest free loans of Rs 6600 crore.

Unfortunately this is not a healthy state of affair where it’ll become difficult for the Centre to make the states agree to any rational economic solution.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236