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English Pages 282 [285] Year 2014
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Indian Capitalism in Development
5HFRJQLVLQJ WKH GLIIHUHQW ZD\V WKDW FDSLWDOLVP LV WKHRULVHG WKLV ERRN H[SORUHV YDULRXVDVSHFWVRIFRQWHPSRUDU\FDSLWDOLVPLQ,QGLD8VLQJ¿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¿UPVDQGHPSOR\PHQW $Q DQDO\VLV RI SURFHVVHV RI FRPPRGL¿FDWLRQ DQG WKHLU LQWHUDFWLRQ ZLWK XQFRPPRGL¿HGDUHDVRIWKHHFRQRP\PDNHVXVHRIWKHµNQRZOHGJHHFRQRP\¶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arbara Harriss-White ZDV IRUPHUO\ 'LUHFWRU RI 2[IRUG 8QLYHUVLW\¶V &RQWHPSRUDU\ 6RXWK $VLDQ 6WXGLHV SURJUDPPH DQG 'LUHFWRU RI WKH 'HSDUWPHQW RI ,QWHUQDWLRQDO 'HYHORSPHQW DW 4XHHQ (OL]DEHWK +RXVH 6KH LV QRZ (PHULWXV 3URIHVVRU RI 'HYHORSPHQW 6WXGLHV DQG 6HQLRU 5HVHDUFK )HOORZ LQ $UHD 6WXGLHV 2[IRUG 8QLYHUVLW\ 8. 6LQFH VKH KDV EHHQ VWXG\LQJ DQG WHDFKLQJ ,QGLDQ SROLWLFDOHFRQRP\IRFXVLQJRQUXUDOGHYHORSPHQWLQIRUPDOFDSLWDOLVPDQGPDQ\ DVSHFWVRIGHSULYDWLRQ Judith Heyer ZDVIRUPHUO\D7XWRULDO)HOORZRI6RPHUYLOOH&ROOHJHDQG/HFWXUHU LQ WKH 'HSDUWPHQW RI (FRQRPLFV DW 2[IRUG 8QLYHUVLW\ 6KH LV QRZ DQ (PHULWXV )HOORZ RI 6RPHUYLOOH &ROOHJH 6KH KDV ZULWWHQ H[WHQVLYHO\ RQ .HQ\D DQG ,QGLD VSHFLDOLVLQJLQUXUDOGHYHORSPHQWDQGSROLWLFDOHFRQRP\
Routledge contemporary South Asia series
1 Pakistan 6RFLDODQGFXOWXUDOWUDQVIRUPDWLRQV in a Muslim nation Mohammad A. Qadeer
8 Regionalism in South Asia Negotiating cooperation, institutional structures Kishore C. Dash
2 Labor, Democratization and Development in India and Pakistan Christopher Candland
9 Federalism, Nationalism and Development ,QGLDDQGWKH3XQMDEHFRQRP\ Pritam Singh
3 China–India Relations &RQWHPSRUDU\G\QDPLFV Amardeep Athwal 4 Madrasas in South Asia 7HDFKLQJWHUURU" Jamal Malik 5 Labor, Globalization and the State :RUNHUVZRPHQDQGPLJUDQWV FRQIURQWQHROLEHUDOLVP Edited by Debdas Banerjee and Michael *ROG¿HOG
10 Human Development and Social Power 3HUVSHFWLYHVIURP6RXWK$VLD Ananya Mukherjee Reed 11 The South Asian Diaspora 7UDQVQDWLRQDOQHWZRUNVDQG changing identities Edited by Rajesh Rai and Peter Reeves 12 Pakistan–Japan Relations &RQWLQXLW\DQGFKDQJHLQ economic relations and security interests Ahmad Rashid Malik
6 Indian Literature and Popular Cinema Recasting classics Edited by Heidi R.M. Pauwels
13 Himalayan Frontiers of India +LVWRULFDOJHRSROLWLFDODQG VWUDWHJLFSHUVSHFWLYHV K. Warikoo
7 Islamist Militancy in Bangladesh $FRPSOH[ZHE Ali Riaz
14 India’s Open-Economy Policy *OREDOLVPULYDOU\FRQWLQXLW\ Jalal Alamgir
7KH6HSDUDWLVW&RQÀLFWLQ6UL Lanka Terrorism, ethnicity, political economy Asoka Bandarage
23 Economic and Human Development in Contemporary India &URQ\LVPDQGIUDJLOLW\ Debdas Banerjee
16 India’s Energy Security Edited by Ligia Noronha and Anant Sudarshan
24 Culture and the Environment in the Himalaya Arjun Guneratne
17 Globalization and the Middle Classes in India 7KHVRFLDODQGFXOWXUDOLPSDFWRI QHROLEHUDOUHIRUPV Ruchira Ganguly-Scrase and Timothy J. Scrase
25 The Rise of Ethnic Politics in Nepal Democracy in the margins Susan I. Hangen
18 Water Policy Processes in India 'LVFRXUVHVRISRZHUDQG resistance Vandana Asthana 19 Minority Governments in India 7KHSX]]OHRIHOXVLYHPDMRULWLHV Csaba Nikolenyi 20 The Maoist Insurgency in Nepal 5HYROXWLRQLQWKHWZHQW\¿UVW century Edited by Mahendra Lawoti and Anup K. Pahari 21 Global Capital and Peripheral Labour The history and political economy RISODQWDWLRQZRUNHUVLQ,QGLD K. Ravi Raman 22 Maoism in India 5HLQFDUQDWLRQRIXOWUDOHIWZLQJ H[WUHPLVPLQWKHWZHQW\¿UVW century Bidyut Chakrabarty and Rajat Kujur
26 The Multiplex in India $FXOWXUDOHFRQRP\RIXUEDQ leisure Adrian Athique and Douglas Hill 27 Tsunami Recovery in Sri Lanka Ethnic and regional dimensions Dennis B. McGilvray and Michele R. Gamburd 28 Development, Democracy and the State &ULWLTXLQJWKH.HUDODPRGHORI GHYHORSPHQW K. Ravi Raman 29 Mohajir Militancy in Pakistan 9LROHQFHDQGWUDQVIRUPDWLRQLQWKH .DUDFKLFRQÀLFW Nichola Khan 30 Nationbuilding, Gender and War Crimes in South Asia Bina D’Costa 31 The State in India after Liberalization ,QWHUGLVFLSOLQDU\SHUVSHFWLYHV Edited by Akhil Gupta and K. Sivaramakrishnan
32 National Identities in Pakistan 7KHZDULQFRQWHPSRUDU\ 3DNLVWDQL¿FWLRQ Cara Cilano
41 Explaining Pakistan’s Foreign Policy (VFDSLQJ,QGLD Aparna Pande
33 Political Islam and Governance in Bangladesh Edited by Ali Riaz and C. Christine Fair
42 Development-induced Displacement, Rehabilitation and Resettlement in India &XUUHQWLVVXHVDQGFKDOOHQJHV Edited by Sakarama Somayaji and Smrithi Talwar
34 Bengali Cinema µ$Q2WKHU1DWLRQ¶ Sharmistha Gooptu 35 NGOs in India 7KHFKDOOHQJHVRIZRPHQ¶V HPSRZHUPHQWDQGDFFRXQWDELOLW\ Patrick Kilby 36 The Labour Movement in the Global South 7UDGHXQLRQVLQ6UL/DQND S. Janaka Biyanwila 37 Building Bangalore Architecture and urban WUDQVIRUPDWLRQLQ,QGLD¶V6LOLFRQ Valley John C. Stallmeyer &RQÀLFWDQG3HDFHEXLOGLQJLQ Sri Lanka &DXJKWLQWKHSHDFHWUDS" Edited by Jonathan Goodhand, Jonathan Spencer and Benedict Korf 39 Microcredit and Women’s Empowerment $FDVHVWXG\RI%DQJODGHVK Amunui Faraizi, Jim McAllister and Taskinur Rahman 40 South Asia in the New World Order 7KHUROHRIUHJLRQDOFRRSHUDWLRQ Shahid Javed Burki
43 The Politics of Belonging in India %HFRPLQJ$GLYDVL Edited by Daniel J. Rycroft and Sangeeta Dasgupta 44 Re-Orientalism and South Asian Identity Politics 7KHRULHQWDORWKHUZLWKLQ Edited by Lisa Lau and Ana Cristina Mendes 45 Islamic Revival in Nepal 5HOLJLRQDQGDQHZQDWLRQ Megan Adamson Sijapati 46 Education and Inequality in India $FODVVURRPYLHZ Manabi Majumdar and Jos Mooij 47 The Culturalization of Caste in India ,GHQWLW\DQGLQHTXDOLW\LQD multicultural age Balmurli Natrajan 48 Corporate Social Responsibility in India Bidyut Chakrabarty 49 Pakistan’s Stability Paradox Domestic, regional and international dimensions Edited by Ashutosh Misra and Michael E. Clarke
50 Transforming Urban Water Supplies in India 7KHUROHRIUHIRUPDQG SDUWQHUVKLSVLQJOREDOL]DWLRQ Govind Gopakumar 51 South Asian Security 7ZHQW\¿UVWFHQWXU\GLVFRXUVHV Sagarika Dutt and Alok Bansal 52 Non-discrimination and Equality in India &RQWHVWLQJERXQGDULHVRIVRFLDO MXVWLFH Vidhu Verma 53 Being Middle-class in India $ZD\RIOLIH Henrike Donner 54 Kashmir’s Right to Secede $FULWLFDOH[DPLQDWLRQRI FRQWHPSRUDU\WKHRULHVRIVHFHVVLRQ Matthew J. Webb 55 Bollywood Travels &XOWXUHGLDVSRUDDQGERUGHU FURVVLQJVLQSRSXODU+LQGLFLQHPD Rajinder Dudrah 56 Nation, Territory, and Globalization in Pakistan 7UDYHUVLQJWKHPDUJLQV Chad Haines 57 The Politics of Ethnicity in Pakistan 7KH%DORFK6LQGKLDQG0RKDMLU HWKQLFPRYHPHQWV Farhan Hanif Siddiqi 1DWLRQDOLVPDQG(WKQLF&RQÀLFW ,GHQWLWLHVDQGPRELOL]DWLRQDIWHU Edited by Mahendra Lawoti and Susan Hangen
59 Islam and Higher Education &RQFHSWVFKDOOHQJHVDQG opportunities Marodsilton Muborakshoeva 60 Religious Freedom in India 6RYHUHLJQW\DQGDQWL FRQYHUVLRQ Goldie Osuri 61 Everyday Ethnicity in Sri Lanka 8SFRXQWU\7DPLOLGHQWLW\SROLWLFV Daniel Bass 62 Ritual and Recovery in 3RVW&RQÀLFW6UL/DQND (ORTXHQWERGLHV Jane Derges 63 Bollywood and Globalisation 7KHJOREDOSRZHURISRSXODU+LQGL cinema Edited by David J. Schaefer and Kavita Karan 64 Regional Economic Integration in South Asia 7UDSSHGLQFRQÀLFW" Amita Batra 65 Architecture and Nationalism in Sri Lanka The trouser under the cloth Anoma Pieris 66 Civil Society and Democratization in India ,QVWLWXWLRQVLGHRORJLHVDQG interests Sarbeswar Sahoo 67 Contemporary Pakistani Fiction in English ,GHDQDWLRQVWDWH Cara N. Cilano
68 Transitional Justice in South Asia $VWXG\RI$IJKDQLVWDQDQG1HSDO Tazreena Sajjad
77 Being Bengali $WKRPHDQGLQWKHZRUOG Edited by Mridula Nath Chakraborty
69 Displacement and Resettlement in India 7KHKXPDQFRVWRIGHYHORSPHQW Hari Mohan Mathur
78 The Political Economy of Ethnic &RQÀLFWLQ6UL/DQND Nikolaos Biziouras
70 Water, Democracy and Neoliberalism in India 7KHSRZHUWRUHIRUP Vicky Walters 71 Capitalist Development in India’s Informal Economy Elisabetta Basile 72 Nation, Constitutionalism and Buddhism in Sri Lanka Roshan de Silva Wijeyeratne 73 Counterinsurgency, Democracy, and the Politics of Identity in India )URPZDUIDUHWRZHOIDUH" Mona Bhan 74 Enterprise Culture in Neoliberal India 6WXGLHVLQ\RXWKFODVVZRUNDQG media Edited by Nandini Gooptu 75 The Politics of Economic Restructuring in India (FRQRPLFJRYHUQDQFHDQGVWDWH spatial rescaling Loraine Kennedy 76 The Other in South Asian Religion, Literature and Film 3HUVSHFWLYHVRQRWKHULVPDQG otherness Edited by Diana Dimitrova
79 Indian Arranged Marriages $VRFLDOSV\FKRORJLFDOSHUVSHFWLYH Tulika Jaiswal 80 Writing the City in British Asian Diasporas Edited by Seán McLoughlin, William Gould, Ananya Jahanara Kabir and Emma Tomalin 81 Post-9/11 Espionage Fiction in the US and Pakistan 6SLHVDQGµWHUURULVWV¶ Cara Cilano 82 Left Radicalism in India Bidyut Chakrabarty 83 “Nation-State” and Minority Rights in India &RPSDUDWLYHSHUVSHFWLYHVRQ 0XVOLPDQG6LNKLGHQWLWLHV Tanweer Fazal 84 Pakistan’s Nuclear Policy A minimum credible deterrence Zafar Khan 85 Imagining Muslims in South Asia and the Diaspora Secularism, religion, representations Claire Chambers and Caroline Herbert
86 Indian Foreign Policy in Transition 5HODWLRQVZLWK6RXWK$VLD Arijit Mazumdar
88 Indian Capitalism in Development Edited by Barbara Harriss-White and Judith Heyer
87 Corporate Social Responsibility and Development in Pakistan Nadeem Malik
89 Bangladesh Cinema and National Identity ,QVHDUFKRIWKHPRGHUQ" Zakir Hossain Raju
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Indian Capitalism in Development
Edited by Barbara Harriss-White and Judith Heyer
)LUVWSXEOLVKHG by Routledge 3DUN6TXDUH0LOWRQ3DUN$ELQJGRQ2[RQ2;51 and by Routledge 7KLUG$YHQXH1HZVSHFLDOHFRQRPLF]RQHV@ ¶WRSULYDWHSOD\HUV.XPDU DQG&KDWWHUMHH[LLL 12 Without decent regulation and enforcement, largely ODFNLQJVRIDUWKLVWKUHDWHQVWRFUHDWHDWZRWLHUV\VWHPWKDWEHQH¿WVLQGXVWULDOists and the urban middle classes, but leaves rural areas to fall behind with LQFUHDVLQJO\ GHFUHSLW SXEOLF XWLOLWLHV -RVHSK 7RQJLD 7KLV V\VWHP may come to resemble the notorious SEZs, permitting elites to partially secede from messy democratic realities. To avoid losing lucrative customers, however, state governments are subverting the policy by pressurizing regulators to set prohibitively high surcharges. Once again, the federal division of responsibilities stymies implementation, as the exigencies of popular politics collide with liberalizing orthodoxy. $OWKRXJKPXFKOLWHUDWXUHWUHDWVWKHSRZHUVHFWRUDVDWHFKQLFDODUHQDWKHQDOO policy making is emphatically political. Liberalization shifts some of the arenas for these struggles, somewhat diminishing the legislature’s power in favour of WKH H[HFXWLYH DQG TXDVL MXGLFLDO RUJDQV WR VWUXFWXUDOO\ IDYRXU FHUWDLQ JURXSV 7KHUHVXOWLVDµWZRWUDFNSROLW\¶RQWKHRQHKDQGWKHPHVV\GHDGORFNHGHOHFWRUDODUHQDDQGXQGHUIXQGHGVRFLDOSURJUDPPHVRQWKHRWKHUWKHFRQFHQWUDWLRQ RIVHFUHWLYHDQGWHFKQRFUDWLFGHFLVLRQPDNLQJSRZHU.RKOL0RRLM . Liberalization marks less a qualitative shift in this strategy, which Marxists and Weberian institutionalists alike would argue is a perpetual urge in government :HEHU± WKDQDVWUHQJWKHQHGKDQGIRUVRPHKLJKOHYHOWHFKQRcrats and their business allies. These fractions of the state have sought to insulate it from penetration by rural groups and even from its own cost-blind lower bureaucracy, even while seeking to facilitate closer relations – developmental embeddedness – with business. Embedded autonomy versus state ambivalence If capture by subsidy-hungry agriculturalists and other theft-prone groups alters the class content of policy to make the long-term development of the power VHFWRU GLI¿FXOW WKH µULJKW W\SH¶ RI HPEHGGHGQHVV UHLQIRUFHV WKH VWDWH¶V UHIRUP LQFOLQDWLRQ DQG LWV DFFHVV WR LQIRUPDWLRQ ¿QDQFH DQG WHFKQRORJ\ 7KH FHQWUDO state’s pro-business turn is visible in the power sector, with corporate lobby groups, personnel and energy capitalists increasingly brought into the policy process in New Delhi. Some things have not changed, however. Bureaucrats retain suspicions about business, due in part to past experience with private energy players. In addition, electricity’s social importance and India’s growing
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E. Chatterjee
energy worries make the state indispensable, creating a dualistic and ambivalent V\VWHP PDUNHWRULHQWHG EXW VWDWHOHG HYHQ DV UXUDO JURXSV UHWDLQ LQÀXHQFH LQ some states. 7KHFRQWHPSRUDU\VWDWH¶VµLQVWUXPHQWDOLVW¶OLQNVZLWKELJEXVLQHVVDUHLQFUHDVLQJO\VWURQJ:KHUHUXUDOJURXSVUHOLHGRQHOHFWRUDOZHLJKWIRULQÀXHQFHHQHUJ\ capitalists are welcomed more directly into the policy-making process. They are better equipped than rural lobbies to cope with the rapid pace and technicalities of complex legislation, repeated policy revisions and legal challenges. Some EXVLQHVV OREELHV KDYH EHFRPH PRUH µGHYHORSPHQWDO¶ LQ WKHLU PHFKDQLVPV RI LQÀXHQFH IDYRXULQJ 3RZHU3RLQW SROLF\ DGYLFH DV PXFK DV µEULHIFDVH SROLWLFV¶ There are two major power industry lobbies – the Independent Power Producers $VVRFLDWLRQRI,QGLD,33$, DQGWKH$VVRFLDWLRQRI3RZHU3URGXFHUV$33 ± which provide loud, articulate private voices in policy formulation. The centre of lobbying action, too, has shifted from Udyog Bhavan, the industries ministry, to WKHLQIUDVWUXFWXUHPLQLVWULHV.RFKDQHN6LQKD Many central power bureaucrats are genuine believers in the ability of the PDUNHW WR FRUUHFW GLVWRUWLRQV DQG SURYLGH PXFKQHHGHG ¿VFDO GLVFLSOLQH14 The µUHYROYLQJ GRRU¶ EHWZHHQ WKH XSSHU HFKHORQV RI WKH EXUHDXFUDF\ UHJXODWRUV SOEs and private companies also spins rapidly, so that the state effectively subVLGL]HVH[SHUWLVHIRUWKHSULYDWHVHFWRU)RUPHUSRZHUVHFUHWDU\596KDKLSUHviously worked for NTPC and for the private Bombay Suburban Electric Supply /WG %6(6 ODWHU WDNHQ RYHU E\ 5HOLDQFH (QHUJ\ IRU H[DPSOH KH LV FXUUHQWO\ chairman of an energy consultancy and sits on the boards of several other comSDQLHVLQFOXGLQJ-LQGDO3RZHU$VKRN.KXUDQDGLUHFWRUJHQHUDORI$33ZDVDQ ,$6RI¿FHULQWKHSRZHUPLQLVWU\DQGODWHUD:RUOG%DQNFRQVXOWDQW,QWHUYLHZ evidence suggests that this embeddedness is two-way, with former bureaucrats bringing at least the rhetoric of public interest to the private sector. The payoff was a surge of private investment into the sector during the Eleventh Plan period ± (QHUJ\FDSLWDOLVWVDUHQRWDOZD\VµGHYHORSPHQWDO¶KRZHYHU+HUULQJ 6RPH KDYH SURYHG WLPLG SUHIHUULQJ WR IROORZ LQ WKH VWDWH¶V ZDNH RU OHVV WKDQ competent, as some generation companies’ unfeasibly low tariff bids in solar auctions may indicate. Others have sometimes proved willing to use quasi-legal PHFKDQLVPV RI LQÀXHQFH DQG WR SXUVXH VKRUWWHUP RU SUHGDWRU\ VWUDWHJLHV exploiting the credulity or venality of some policy makers. In this way the interests of energy capitalists, and the bureaucrats’ attitudes towards them, may not align with those of big business more generally. 7KH FODVVLF FDVH LV WKH LQLWLDO ,33 SKDVH RI UHIRUP 7KH SROLF\ ZDV ÀDZHG anyway, based on the convenient misconception that additional generation was WKH¿UVWSULRULW\UDWKHUWKDQSROLWLFDOO\ULVN\GLVWULEXWLRQUHIRUP0RUHSUREOHPDWLFDOO\ µDWWUDFWLQJ FDSLWDO EHFDPH DQ HQG LQ LWVHOI UDWKHU WKDQ D FRQVLGHUHG PHDQV¶'XEDVK 2IWHQVHFUHWLYHO\,33VZHUHRIIHUHGVWDUWOLQJO\JHQerous terms, most notoriously in the case of Enron’s Dabhol power plant, MaharDVKWUD 6XFK ,33V¶ EXVLQHVV SUDFWLFHV ZHUH RIWHQ GHHSO\ VOHD]\ WKHLU ¿QDQFHV RSDTXH DQG WKH SRZHU JHQHUDWHG H[WUHPHO\ H[SHQVLYH $ GHFDGH DIWHU WKH
The state and transition in Indian electricity JRYHUQPHQWµIDVWWUDFNHG¶HLJKWSURMHFWVRQO\WKUHHKDGSURGXFHGSRZHULQWKH ODWWHUKDOIRIWKHVSXEOLFVHFWRUFDSDFLW\JUHZWZLFHDVIDVWDVSULYDWHJHQHUDWLRQ 7RQJLD ± 3HUKDSV WKH PRVW FKDULWDEOH DVVHVVPHQW LV WKDW IPPs won new state-level reform converts through the sheer scale of corruption WKH\SHUPLWWHG0DKDOLQJDP %XUHDXFUDWVDQGDFDGHPLFVDOLNHQRZUHJDUG WKHHQWLUHHSLVRGHDVDGHEDFOHDQGWKHVDVDORVWGHFDGHIRUSRZHUSROLF\ Predatory behaviour by energy capitalists and feeble government responses KDYHSURYHGDUHFXUUHQWWKHPH$VRQHIRUPHUVWDWHWHFKQRFUDWQRZOLNHPDQ\ RWKHUVVDIHO\LQVWDOOHGLQDSULYDWHHQHUJ\FRUSRUDWLRQ VDLGJOXPO\µ:HUHJXlated them as though they were good guys – but they weren’t.’ This lack of trust, and the state’s visible inability to effectively discipline and regulate energy FDSLWDO VXJJHVW WKDW SRZHU SROLF\ GRHV QRW FRQVLVWHQWO\ EHQH¿W IURP (YDQV¶ GHYHORSPHQWDOVWDWH±EXVLQHVVQH[XV(YHQZLWKLQWKHVHFWRU,QGLDQFDSLWDOLVPVHHPVWRKDYHERWKGHYHORSPHQWDODQGUHQWVHHNLQJIDFHVFI*DQGKLDQG :DOWRQ 7KHGHJUHHRIFDSLWDOLVWFRKHVLRQDQGRIEXVLQHVVSHQHWUDWLRQRI the state, may have been somewhat overstated. Unsurprisingly the state continues to intervene heavily. The dual system Contra Bretton Woods orthodoxy, India has liberalized pragmatically without dramatic expenditure reduction or privatization. In the energy sector it has favoured corporatization of public sector undertakings, the parallel introduction of competition, and public–private partnerships (most strikingly the ultra-megapower projects, supported with unusual proactivity by the Prime Minister’s 2I¿FH ZKLOH SUHVHUYLQJ 62(V 7KLV KDV FUHDWHG D µSUDJPDWLF K\EULG ZLWK WKH state playing a stronger role in steering and guiding developments’, even though PDUNHWUKHWRULFUHPDLQVSRWHQW'XEDVK 7RGD\ VRPH 62(V KDYH µHPHUJHG WR RFFXS\ D VSDFH EHWZHHQ WKH ROG VWDWH owned system and a hypothetical “textbook” power sector that is dominated by SXUHO\ SULYDWH ¿UPV¶ 7KH\ KDYH EHFRPH SUR¿WGULYHQ DQG FRPSDUDWLYHO\ HI¿FLHQWO\ UXQ K\EULGV 7RQJLD ± /RQJ D :RUOG %DQN IDYRXULWH 173&ZDVH[SOLFLWO\GHVLJQHGµWREHFRPHDPRGHORIPRGHUQRSHUDWLRQDOSUDFWLFHVWKDWWKH6(%VFRXOGHPXODWH¶'XEDVKDQG5DMDQTXRWLQJWKH %DQN /LNHVRPHRILWVVLEOLQJVVXFKDV2LODQG1DWXUDO*DV&RUSRUDWLRQ/WG 21*& DQG*DV$XWKRULW\RI,QGLD/WG*$,/ LWKDVEHHQFRUSRUDWL]HGFRPmercialized and declared a Navratna companyZLWKJUHDWHUHYHU\GD\¿QDQFLDO and managerial autonomy from ministerial oversight. Dominating the Indian stock market, the Navratna companies combine corporate management systems DQGSROLWLFDOFRQQHFWLRQVWRDGHJUHHPDWFKHGRQO\LQWKHSULYDWHVHFWRUE\5HOLance Industries. They have gradually gained prominence for what they reveal DERXW FRQWHPSRUDU\ ,QGLDQ FDSLWDOLVP ZHDOWK LV KLJKO\ FRQFHQWUDWHG 62(V UHPDLQ SRZHUIXO DQG VRPHWLPHV SUR¿WDEOH SHU FHQW RI WKH SUR¿WV RI WKH ELJJHVW ¿UPV VLWV LQ VWDWHFRQWUROOHG ¿UPV DQG µROGIDVKLRQHG¶ UHQWWKLFN sectors predominate (The Economist *DQGKLDQG:DOWRQ
E. Chatterjee The SOEs enjoy a complex relationship with the state. They are exposed to FRPSHWLWLRQ DQG KDYH LQGHSHQGHQW GLUHFWRUV DQG µDQ LQFUHDVLQJO\ DUP¶V OHQJWK UHODWLRQVKLS¶ZLWKWKHJRYHUQPHQW5DL W@KHVLQJOHPRVWLPSRUWDQWIDFWGULYLQJ,QGLD¶VVWUDWHJLFUHWKLQNLQJRQHQHUJ\¶ 'XEDVK &RQVHTXHQWO\DQHZQDUUDWLYHRIHQHUJ\LQVHFXULW\DQGVFDUcity has increasingly come to dominate in policy circles, in which the state’s continued role looks assured, not least in facilitating access to resources through dispossession. 9LFWRUDQG+HOOHUVXJJHVWWKDWWKHVWDWHPDUNHWK\EULGLVGXUDEOHEXW,QGLD¶V SRZHUVHFWRULVIDUIURPÀRXULVKLQJ7KHDWWHPSWVDWGHSROLWLFL]DWLRQKDYHEHHQ XQHYHQO\DQGSDUWLDOO\VXFFHVVIXODQGPDQ\RIWKHVHFWRU¶VSUREOHPVUHPDLQ$W OHDVWLQ,QGLDWKHEDODQFHEHWZHHQWHFKQRFUDF\DQGµSROLWLFV¶DSSHDUVOHVVVWDEOH than their interpretation credits. This is true not only because of the state’s problematic embeddedness, but also its internal incoherence.
3 Another spoiler: state dysfunction That planners and policies aim to facilitate pro-business development is no guarantee of success. If the developmental state requires the right type and degree of HPEHGGHGQHVVLWDOVRUHTXLUHVWKHULJKWPRGXVRSHUDQGL(YDQV ,QFRQWUDVW WR WKH :HEHULDQ LGHDO W\SH WKH VWDWH LV QRW D XQL¿HG FRKHVLYH HQWLW\ ,QWHUQDO LQFRKHUHQFH FRQÀLFW DQG SROLF\ G\VIXQFWLRQ DUH QR DEHUUDWLRQ EXW D IXQGDPHQWDOSDUWRIVWDWHRSHUDWLRQV6FKDIIHU 7KHWZLQWUHQGVRIHPEHGGHGSRSXOLVPDQGµGHSROLWLFL]LQJ¶OLEHUDOL]DWLRQKDYHKHOSHGUHVKDSHWKHVWDWH¶V own institutions. Under permanent political and popular pressure, India’s power bureaucracy is increasingly riven by institutional proliferation and rivalry, pathological behaviour, and the fundamental fracture line of federalism. Federalism and disunity The state not only provides the arena for increasingly competitive distributive FRQÀLFWV EXW DOVR VWUXFWXUHV WKHVH FRQÀLFWV DQG LV LWVHOI UHPRXOGHG LQ WKH SURFHVV 6LPLODUO\LWLVQRWVXI¿FLHQWIRULQGLYLGXDOEXUHDXFUDWVWRµWKLQN:HEHULDQ¶µEXUHDXFUDWLFUDWLRQDOLW\PXVWDOVREHVWUXFWXUHGLQDQDSSURSULDWHDSSRUtionment of power DPRQJVWDWHSROLF\DJHQFLHV¶&KLEEHU 7KDWLVWR VD\µSODQQHUVQHHGWRDOVRKDYHWKHFDSDFLW\WRGLVFLSOLQHRWKHU state agencies’ LELG ,QVWHDGWKHIHGHUDOV\VWHPSURYLGHVDIUDPHWKDWZHDNHQVWKHWHFKnocratic apex, both in terms of interest group management and in directing the allocation of state resources. With the decline of the Congress system, the rise of regional political parties and the competitive neoliberal environment, India has increasingly become a de facto as well as de jure federal system.20$VZDVIHDUHGIURPWKHRXWVHWHOHFWULFLW\¶VFRQVWLWXWLRQDOO\µFRQFXUUHQW¶VWDWXVHQFRXUDJHVVWDWHVWRSROLWLFL]HWKHSRZHU sector while the centre looks on. Power reform implementation has therefore EHHQKLJKO\XQHYHQ7DEOH 1RWDOOVWDWHDGPLQLVWUDWLRQVDUHRUKDYHEHHQ HTXDOO\ SUROLEHUDOL]DWLRQ GLVWLQFWO\ GLIIHUHQW ORJLFV PD\ JRYHUQ WKH VWDWH DQG FHQWUDO OHYHOV WKH IRUPHU VRPHWLPHV µSUHGDWRU\¶ ZKLOH WKH ODWWHU LV µGHYHORSPHQWDO¶0RRLMFI9DUVKQH\±
E. Chatterjee Table 12.1 Status of reform across Indian states Description
States
No change
$UXQDFKDO3UDGHVK1DJDODQG
5HJXODWRUEXWQRVWUXFWXUDOFKDQJH
Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Sikkim
5HJXODWRUDQGRQHUHIRUP
%LKDU*RDUHJXODWRU,33V 7ULSXUDUHJXODWRUWDULIIUHIRUP
5HJXODWRUWDULIIUHIRUPRSHQDFFHVVEXWQR Punjab, West Bengal IPPs or unbundling 5HJXODWRUWDULIIUHIRUPRSHQDFFHVVLQ transmission and distribution, IPPs but no unbundling
Tamil Nadu, Chhattisgarh, Jharkhand, +LPDFKDO3UDGHVK.HUDOD 8WWDU3UDGHVKXQEXQGOLQJEXWQR,33V
5HJXODWRU,33VXQEXQGOHG6(%XQGHUVWDWH $QGKUD3UDGHVK0DGK\D3UDGHVK*XMDUDW ownership, tariff revision, open access Haryana, Karnataka, Maharashtra, 5DMDVWKDQ8WWDUDNKDQG$VVDP 5HJXODWRU,33VXQEXQGOLQJWDULIIUHYLVLRQ Odisha, Delhi open access, with privatized distribution 6RXUFH%DVHGRQ6HQDQG-DPDVE GUDZLQJRQ0LQLVWU\RI3RZHUGDWDGDWHG'HFHPEHU Note 7KLV PDVNV RWKHU LPSRUWDQW YDULDWLRQV *XMDUDW VXFFHVVIXO LQ DWWUDFWLQJ LQYHVWPHQW +LPDFKDO 3UDGHVKUHVRXUFHULFK 'HOKLUHIRUPHGWDULIIVDQGSULYDWL]HGGLVWULEXWLRQ DQGXQWLOUHFHQWO\:HVW Bengal (with a combination of plentiful resources and suppressed demand through lack of agriculWXUDOPHFKDQL]DWLRQLQGXVWULDOL]DWLRQDQGUXUDOHOHFWUL¿FDWLRQ KDYHEHHQLQUHDVRQDEOH¿QDQFLDOFRQdition despite their differing structures. Tamil Nadu, conversely, does abysmally, in part because it UHVLVWHGWDULIIULVHVIRUVHYHQ\HDUVEHIRUHSXEOLFRXWFU\RYHUWKHSRZHUVLWXDWLRQPDGHDKXJHSHU cent hike, and U-turning to back the controversial Kudankulam nuclear power plant, politically feasible. Other previously dubious performers to hike tariffs substantially in 2012 include Uttar Pradesh, 5DMDVWKDQDQGIRUPHUHDUO\PRYHU+DU\DQD
Enthusiasm for reform, with its threat of rising tariffs for agricultural and residential users, has varied broadly according to the comparative strength DQG LQÀXHQFH RI ULVLQJ EXVLQHVV JURXSV YHUVXV UXUDO FRQVWLWXHQFLHV .DOH :KHUH UXUDO SROLWLFDO LQWHUHVWV DUH ZHOO RUJDQL]HG IRU H[DPSOH LQ 3XQMDE 7DPLO 1DGX DQG DIWHU &KDQGUDEDEX 1DLGX $QGKUD 3UDGHVK WKH\ KDYHVORZHGRUXQGHUPLQHGSRZHUUHIRUPVWKDWZRXOGPRUHREYLRXVO\EHQH¿W industrial and urban groups and foreign capital, often despite very poor SEB SHUIRUPDQFH :KHUH UXUDO LQWHUHVWV DUH QXPHULFDOO\ LQVLJQL¿FDQW 'HOKL RU KDYHUHPDLQHGSROLWLFDOO\PDUJLQDOL]HG2GLVKD RUWKHVWDWHDGPLQLVWUDWLRQLV SDUWLFXODUO\VWURQJ*XMDUDW UHIRUPVKDYHSURFHHGHGZLWKVRPHZKDWJUHDWHU ease.21 $OWKRXJKIHGHUDOLVPLVSHUKDSVWKHODUJHVWVLQJOHREVWDFOHWRVZHHSLQJUHIRUP WKHFHQWUHLVQRWHQWLUHO\SRZHUOHVV,WXVHVLWVQRWLQFRQVLGHUDEOH¿QDQFLDOVZD\ DV ERWK FDUURW DQG VWLFN WR LQFHQWLYL]H UHIRUP FRPSOLDQFH 5XHW )RU
The state and transition in Indian electricity instance, before regulators became mandatory, the centre agreed to grant interest subsidies on Power Finance Corporation loans only to states that had set up regXODWRU\ FRPPLVVLRQV .XPDU DQG &KDWWHUMHH &HQWUDOO\ VSRQVRUHG VFKHPHV DUH LQFUHDVLQJO\ XVHG DV OHYHUV 7KH ZHOOIXQGHG $FFHOHUDWHG 3RZHU 'HYHORSPHQWDQG5HIRUPV3URJUDPPH$3'53 LQFHQWLYL]HVVWDWHVWRFXWXUEDQ commercial losses and improve distribution by linking success to disbursements. $ OHYHO RI ¿VFDO GHFHQWUDOL]DWLRQ DQG WKH HQFRXUDJHPHQW RI VWDWHOHYHO DJUHHments with international donors and private investors are also designed to harden EXGJHWFRQVWUDLQWV.LUN 6LPLODUO\WKHFHQWUHXVHVLWVVXEVWDQWLDOFRQWURO of energy supplies through enterprises like NTPC to discipline SEBs, for example, by threatening to cut supply, even taking over the Talcher thermal SRZHUSODQWLQDIWHUQRQSD\PHQWLQ2GLVKD5XGROSKDQG5XGROSK 7KH FHQWUH¶V DELOLW\ WR LQWHUYHQH GLUHFWO\ LQ WKH VWDWHV PD\ KDYH EHHQ UHGXFHGEXWLWVWLOOUHWDLQVVRPHLQVWUXPHQWVWRUHJXODWHDQGLPSRVH¿VFDOGLVFLSline. However, harder budget constraints are often compromised through debt write-offs, restructuring and payouts to coalition partners. The latest central bailout was announced in September 2012. $VZLWKWKHRYHUDOOHFRQRP\WKHVHFWRU¶VµUHDOFHQWUHRIJUDYLW\¶KDVVKLIWHG towards the states, while the centre struggles to employ credible institutional or ¿QDQFLDO FRQWUROV 5XHW ,Q SUDFWLFH WKHQ µFRQWURO RI WKH HFRQRP\ LV EHLQJZUHQFKHGZLWKWKHJUHDWHVWGLI¿FXOW\¶IURPVWDWHOHYHOSRSXOLVPDQGQRQ FRUSRUDWHLQÀXHQFHZLWKµFRQVLGHUDEOHLQHUWLDDQGLQGHFLVLRQLQWDFNOLQJWKHYHU\ largest state transfers’ like the vast agricultural power subsidies (Harriss-White %DUGKDQ± $V+DUULVV:KLWH DUJXHVWKH¿WIXOness and pain of reforms over the past quarter-century may be seen as marking WKHELWWHULQFRPSOHWHWUDQVLWLRQIURPDQµLQWHUPHGLDWHUHJLPH¶RIVWDWLVWLQWHUYHQtion, subsidies and scarcity to a more traditionally capitalist, big-businessdominated, liberalization-minded regime. In this incomplete transition, IHGHUDOLVP PD\ GLVVLSDWH UHVLVWDQFH -HQNLQV EXW HOHFWULFLW\¶V FRQFXUUHQW status also limits the ability of the technocratic apex to enact reforms and further widens regional inequalities, even as it leaves the states open to public blame. In this light, privatization and other central efforts to weaken state control mark an DWWHPSWWRVHFXUHµWKHUHODWLYHUHFXSHUDWLRQRIDQDGYDQWDJHE\WKH&HQWUH>sic] RYHUWKH6WDWHV¶5XHW Bureaucratic pathology The power sector is inseparable from the energy sector more generally, yet India has no overarching energy strategy. Like other elements of the Indian bureauFUDF\DQGDJDLQH[DFHUEDWHGE\WKHIHGHUDOV\VWHPDQGµSROLWLFV¶SRZHUSROLF\ suffers from institutional proliferation. The Ministry of Energy was split into WKUHHLQ7RGD\¿YHPLQLVWULHVGLUHFWO\KDQGOHHQHUJ\SROLF\DQGPXOWLSOH energy teams feed into the Five-Year Plans. This institutionalizes chronic disunity, yet the exigencies of coalition and federal politics, in which allies are rewarded with posts, suggest that multiple ministries are likely to continue.
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E. Chatterjee
The technical calibre of central technocrats appears generally high, but their vision is not necessarily transmitted through the state system. The comparatively ZHDN 3ODQQLQJ &RPPLVVLRQ VWUXJJOHV WR LQÀXHQFH ODUJH PLQLVWULHV ZLWK WKHLU RZQLQWHUHVWVDQGSULRULWLHV'XEDVK ,QWKLVZD\µDUREXVWEXUHDXFUDF\ can become a weapon against VWDWHFRKHVLRQ¶&KLEEHU 7RFLUFXPvent such bodies, technocrats have resorted to creating new organizations, like WKH%XUHDXRI(QHUJ\(I¿FLHQF\RUWKH0LVVLRQVRIWKH1DWLRQDO$FWLRQ3ODQRQ &OLPDWH &KDQJH 7KH HQHUJ\ EXUHDXFUDF\ KDV FRQVHTXHQWO\ EHFRPH µLQFUHDVingly byzantine and fragmented’, characterized by both vertical complexity PXOWLSOH FRPSHWLQJ MXULVGLFWLRQDO OHYHOV DQG KRUL]RQWDO FRPSOH[LW\ PXOWLSOH PLQLVWULHVDQGRWKHURUJDQL]DWLRQV 'XEDVK 22 Policy is prone to all the problems that this complexity would suggest: interagency competition over resources and priorities, territoriality, vast transaction FRVWV PXOWLSOH FRQÀLFWLQJ JRDOV FRVWEOLQGQHVV PDOFRRUGLQDWLRQ GXSOLFDWLRQ secretiveness, prodigious paper pushing, illogical rule following and blame shiftLQJ6FKDIIHU5XHW&KDWWHUMHH ,QDGGLWLRQSROLWLFL]HGWUDQVIHUV DQG EULHI DSSRLQWPHQWV DUH ULIH DW DOO OHYHOV DORQJ ZLWK µLQFRPSHWHQFH arrogance, indifference, [and] suppression of dissent’, as one distinguished comPHQWDWRUUDJHGDIWHU-XO\¶VVHYHUHEODFNRXWV6HWKL 7KLVXQGHUPLQHV specialized expertise and the coherence of decision making. $VWKLVVXJJHVWVWKHVHFWRU¶VDGPLQLVWUDWLYHSUREOHPVDUHQRWFRQ¿QHGWRWKH lower echelons of the state. There is no single-minded state apex (cf. Kohli EXWUDWKHUDVHULHVRIDSH[OHYHOIUDFWLRQVVRPHRIZKLFKDUHPRUHSUR OLEHUDOL]DWLRQDQGWHFKQRFUDWLFLQWKHLURULHQWDWLRQ$FROOHFWLRQRIHVVD\VE\WKH (OHFWULFLW\$FW¶VDUFKLWHFWIRUH[DPSOHSURXGO\GHVFULEHVKLPDVµWKHPRVWKDWHG PDQLQ'HOKL¶VLQIUDVWUXFWXUHPLQLVWULHV¶+DOGHD 6XFKOLEHUDOL]LQJWHFKQRFUDWVDORQJZLWK¿QDQFHPLQLVWU\RI¿FLDOVGRQRWQHFHVVDULO\VSHDNZLWKWKH same voice as career bureaucrats and politicians in the line ministries. Indian power policy is undermined both by the state’s awkwardly embedded character and such internal incoherence.
4 Conclusion Examining both the class content of Indian power policy and the state’s institutional arrangements, this review suggests that, contrary to popular anthropomorphism, the state has no simple material reality. Its morphology is uncertain: its boundaries with society are porous and complicated by federalism, institutional complexity, and the incorporation of lobbies and hybrid organizations. Its functions, too, are consequently ambivalent: the Indian state is not monolithic but struggles to act in a unitary fashion. &RQVLVWHQWO\ WHFKQRFUDWLF ORQJWHUPPLQGHG SUREXVLQHVV µGHYHORSPHQWDO¶ impulses can be found, particularly within some central organs and among the leadership of some states, although this is complicated by intra-state competition and frequent dysfunction in planning and practice. The central state’s strategies RI WHFKQRFUDWL]DWLRQ LQVWLWXWLRQDO UH LQYHQWLRQ UHUHJXODWLRQ DQG VWDWHPDUNHW
The state and transition in Indian electricity 221 hybridity attempt to strengthen the hand of the executive against the vagaries of SRSXOLVPHVSHFLDOO\DWWKHVWDWHOHYHO7KLVVXUYH\VXJJHVWVWKDWWKLVµGHSROLWLFLzation’ of power policy has permitted cautious repoliticization at elite levels, through a closer relationship with domestic and international capital. Nonetheless, at its local reaches and in various states the state may compromise with or IDYRXU GLIIHUHQW FODVV FRQ¿JXUDWLRQV *LYHQ LWV IUDJPHQWDWLRQ DQG PDOIXQFWLRQing, it is unhelpful to talk about a monolithic Indian state. This accords with RWKHUVFKRODUV¶¿QGLQJVWKDWWKHDFWXDOO\H[LVWLQJ,QGLDQVWDWHLVµSRO\PRUSKRXV¶ µSOXULFHQWUHG¶ DQG µPXOWLOHYHOOHG¶ RU µSURWHDQ¶ DQG µFRPSOH[¶ 5XGROSK DQG 5XGROSK*XSWD±+DUULVV:KLWH The emergent state-market hybrid system is constrained by the combination of societal resistance, its own organizational structures and physical resources. It is hardly enjoying unreserved success, and is consequently far from stable. The VWDWHLVVWLOOFULWLFDOO\LPSRUWDQWKRZHYHU,QGLDLVQRWIROORZLQJDµFRQYHQWLRQDO¶ trajectory of liberalization. The state’s reach and scale remain unique, unmatched by even the greatest capitalists. It structures competition over resources, and continues to dominate popular conceptions of legitimacy. To argue that it is weakening would be to simplify and exaggerate. India’s contemporary state UHPDLQVVLPXOWDQHRXVO\PRUHDPELYDOHQWO\µFDSLWDOLVW¶PRUHLQGLVSHQVDEOHDQG more chaotic than much theory might suggest.
Notes 1 I am grateful to Barbara Harriss-White, Judith Heyer, and especially the late Jos Mooij for comments on this chapter. ,QKLVUHYLHZ:ULJKW KLJKOLJKWV(YDQV¶IXVLRQRIWKHWZRVHWVRIVWDWHWKHRULHV ±0DU[LDQFODVVDQDO\WLFDQG:HEHULDQLQVWLWXWLRQDOLVW±LQKLVFRQFHSWRIµHPEHGGHG autonomy’, something Evans himself does not stress. Evans notes that the state’s responsibility for economic transformation has become a source of legitimacy in its own right. 7KHVWDWHHQGRUVHVWKHEXVLQHVV±SRZHUOLQNDJHE\LQFRUSRUDWLQJHOHFWUL¿FDWLRQDORQJVLGH VL]H LQWR LWV GH¿QLWLRQ RI µXQRUJDQL]HG¶ HQWHUSULVH 7KHUH LV QR ¿UP GLYLGH between formal and informal enterprises. The ranking of electricity as the top conVWUDLQWLVWUXHIRUERWK:RUOG%DQN± 4 See e.g. industrialists’ famous Bombay Plan (Thakurdas et al. 7KHVWDWHV¶VKDUHRILQVWDOOHGJHQHUDWLRQFDSDFLW\LVGHFOLQLQJEXWHYHQQRZUHPDLQV ODUJHSHUFHQWLQ'HFHPEHUFRPSDUHGZLWKSHUFHQWFHQWUDORZQHUVKLSDQGSHUFHQWSULYDWH&HQWUDO(OHFWULFLW\$XWKRULW\ (OHFWULF WXEHZHOOV DUH FKHDS WR XVH EXW H[SHQVLYH WR LQVWDOO 0HGLXP DQG ODUJH farmers, not VPDOOIDUPHUVRUODQGOHVVODERXUHUVWKHUHIRUHEHQH¿WGLVSURSRUWLRQDWHO\ from power subsidies, especially where irrigation was most successfully extended WKURXJK*UHHQ5HYROXWLRQSROLFLHV.DOH µ$JJUHJDWH WHFKQLFDO FRPPHUFLDO¶ $7 & ORVVHV LQFOXGLQJ WHFKQLFDO ORVVHV DV well as revenue losses through theft, under-billing, non-payment and subsidy misclasVL¿FDWLRQVWLOOKRYHUDURXQGSHUFHQWGRZQIURPSHUFHQWLQYHUVXV SHUFHQWLQ%UD]LOSHUFHQWLQ,QGRQHVLDDQGSHUFHQWLQ&KLQDLQ2(&' ,($ 7KHVKDUHRIDJULFXOWXUDOVXEVLGLHVLQWKLV¿JXUHZDVIUHTXHQWO\FDOFXlated as a residual, thus systematically underestimating both theft and urban usage. 7KH$FWZDVDPHQGHGLQ-DQXDU\DQG-XQH
222
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&RPSHWLWLRQZDVQRPLQDOO\EURXJKWLQWKURXJKGHOLFHQVHGLQFOXGLQJFDSWLYH JHQHUDWLRQ PDQGDWRU\ QRQGLVFULPLQDWRU\ RSHQ DFFHVV WR WUDQVPLVVLRQ FRQVXPHU RSHQ DFFHVVDQGPXOWLSOHOLFHQVHHVLQGLVWULEXWLRQUHFRJQL]LQJSRZHUWUDGLQJDQGHPSRZering regulators to frame regulations for market development (see the detailed anaO\VLVLQ.XPDUDQG&KDWWHUMHH )RUH[DPSOHWKHUHSRUWRIWKH5DMDGK\DNVKD&RPPLWWHHLQ 11 Open access allows large consumers to seek sources other than the utility on payment RIFKDUJHVWRXVHWKHLQFXPEHQW¶VLQIUDVWUXFWXUHDQGFURVVVXEVLGL]HRWKHUXVHUVWKH\ can also now sell any excess from captive production. Big consumers include comPHUFLDO FXVWRPHUV DQG WKH ZHDOWK\ UHVLGHQWLDO FRORQLHV DQ DPHQGPHQW WR WKH $FW decreed that customers with loads above 1 megawatt would be given the option. )URP WKH )RUHZRUG E\ 3UDPRG 'HR &KDLUPDQ &HQWUDO (OHFWULFLW\ 5HJXODWRU\ Commission. ,QDQ\FDVHWKHFXUUHQWGHPDQG±VXSSO\JDSDORQJVLGHHTXLW\DQGHQYLURQPHQWDOFRQFHUQV PDNHVFRPSHWLWLRQSUREOHPDWLF'HYHORSHGFRXQWU\OLEHUDOL]DWLRQLQWKHV was facilitated by excess supply. This may be seen as evidence that Indian liberalizaWLRQ VXIIHUV IURP SDWKRORJLHV RI µLVRPRUSKLF PLPLFU\¶ DWWHPSWV WR JDLQ OHJLWLPDF\ µWKURXJK WKH LPLWDWLRQ RI WKH IRUPV RI PRGHUQ LQVWLWXWLRQV ZLWKRXW IXQFWLRQDOLW\¶ (Pritchett et al. ,PSRUWHGSROLF\PRGHOVDQGDJHQGDVKDYHSURYHGSUREOHPDWLFLQDSSOLFDWLRQDFFRXQWDELOLW\DQGFUHGLELOLW\WHUPV'XEDVKDQG5DMDQ;X 7KHGLVMXQFWXUHEHWZHHQVRSKLVWLFDWHGEHVWSUDFWLFHSODQVDQG,QGLDQUHDOLWLHV leads to persistent dysfunction. $XWKRULQWHUYLHZV1HZ'HOKL)HEUXDU\WR-XQH $VHQLRUSULYDWHVHFWRUUHSUHVHQWDWLYHLQ'HOKLZKHUHGLVWULEXWLRQLVSULYDWL]HGVDLG WKDWµWKHSULYDWHVHFWRULVFDOOHGXSRQWRIXO¿OWKHIXQFWLRQVRIWKHVWDWH¶DXWKRULQWHUYLHZ 'HOKL 0D\ ,$6 PHPEHUV VLW RQ WKH ERDUGV RI ERWK %6(6 GLVWULEXWLRQ entities in Delhi. 0DQ\SURMHFWVKDYHEHHQGDPDJHGE\,QGLD¶VUHFHQWIXHOVXSSO\FULVLV $XWKRULQWHUYLHZ1HZ'HOKL0D\7KHVDPHLQWHUYLHZHHGHVFULEHGVFKHPHVWR DEXVHWKHFKHDSLQIUDVWUXFWXUDO¿QDQFLQJWKDWFRPHVZLWKSRZHUSURMHFWDSSURYDODQG suggested that energy lobbies should assist the state in disciplining their own badly behaved members. Other examples of predatory capitalism include the abuse of solar procurement procedures as exposed by the Centre for Science and the Environment %KXVKDQDQG+DPEHUJ DQGSULYDWHFRDOEORFNVEHLQJOHIWXQPLQHGDQGLQVWHDG VSHFXODWHG XSRQ SDUW RI ¶V HQRUPRXV µ&RDOJDWH¶ DOORFDWLRQ VFDQGDO 7KH VXVSLcion created by these examples tars others: several bureaucrats interviewed also HYLQFHGVFHSWLFLVPDERXW5HOLDQFH¶VXQGHUSURGXFWLRQIURPLWV.ULVKQD*RGDYDULEDVLQ JDV UHVHUYHV DQG DERXW 7DWD DQG 5HOLDQFH¶V DWWHPSWV WR UHQHJRWLDWH SRZHU SXUFKDVH agreements after fuel imports drastically increased in price. 173& EHFDPH RQH RI ,QGLD¶V µQLQH MHZHOV¶ LQ LQ LW ZDV PDGH D Maharatna WKH QHZ WRS FODVV DEOH WR PDNH LQYHVWPHQWV RI DERXW 86 ELOOLRQ 5V FURUH ZLWKRXWH[SOLFLWJRYHUQPHQWDSSURYDO :KLOH UHQHZDEOH DQG HQHUJ\HI¿FLHQF\ FRQFHUQV DUH LQWHJUDWHG LQWR WKH HQHUJ\ VHFXULW\QDUUDWLYHGXHWR,QGLD¶VOLPLWHGGRPHVWLFUHVRXUFHV'XEDVK HQYLURQPHQWDO FRQFHUQV DUH RIWHQ ORZ SULRULW\ DW WKH WLPH RI ZULWLQJ )HEUXDU\ WKH Ministry of Environment and Forests is headed by the petroleum minister. Power generation causes vast environmental damage, including a groundwater crisis from subsiGL]HG HOHFWULF WXEHZHOOV DQG WR GHDWKV D \HDU WKURXJK SROOXWLRQ IURP FRDO¿UHGSODQWV*UHHQSHDFH 20 Energy lobbies also realize this, and lobby heavily at the state level. 2GLVKDDQG'HOKLKDYHSULYDWL]HGGLVWULEXWLRQ7DEOH ZKLOH*XMDUDWKDVDWWUDFWHG private capital, innovatively separated out rural household and agricultural supplies, and leads in solar power.
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References $KPHG 6DGLT DQG *KDQL (MD] South Asia: Growth and Regional Integration, Washington, DC: World Bank. %DUGKDQ3UDQDE The Political Economy of Development in India, expanded edn, Oxford: Oxford University Press. %KXVKDQ&KDQGUDDQG+DPEHUJ-RQDV µ7KHWUXWKDERXWVRODUPLVVLRQ¶Down to Earth)HEUXDU\ZZZGRZQWRHDUWKRUJLQFRQWHQWWUXWKDERXWVRODUPLVVLRQ %R\FNR 0D[LP 6KOHLIHU $QGUHL DQG 9LVKQ\ 5REHUW : Privatizing Russia, &DPEULGJH0$0,73UHVV &HQWUDO(OHFWULFLW\$XWKRULW\ Executive Summary: Power Sector, New Delhi: MinLVWU\ RI 3RZHU *RYHUQPHQW RI ,QGLD ZZZFHDQLFLQUHSRUWVPRQWKO\H[HFXWLYHBUHS GHFSGfDFFHVVHG-DQXDU\ &KDWWHUMHH(OL]DEHWK µ'LVVLSDWHGHQHUJ\,QGLDQHOHFWULFSRZHUDQGWKHSROLWLFVRI blame’, Contemporary South Asia, ± &KLEEHU9LYHN µ%XUHDXFUDWLFUDWLRQDOLW\DQGWKHGHYHORSPHQWDOVWDWH¶American Journal of Sociology ± 'XEDVK1DYUR]. µ)URPQRUPWDNHUWRQRUPPDNHU",QGLDQHQHUJ\JRYHUQDQFH in global context’, Global Policy, ± 'XEDVK 1DYUR] . DQG 5DMDQ 6XGKLU &KHOOD µ3RZHU SROLWLFV SURFHVV RI SRZHU sector reform in India’, Economic and Political Weekly, ± 'XEDVK1DYUR].DQG5DR1DUDVLPKD' µ5HJXODWRU\SUDFWLFHDQGSROLWLFVOHVVRQV from independent regulation in Indian electricity’, Utilities Policy, ± Economist, The µ$GYHQWXUHVLQFDSLWDOLVP¶2FWREHU (YDQV3HWHU Embedded Autonomy: States and Industrial Transformation, Princeton, NJ: Princeton University Press. *DQGKL $GLWL DQG :DOWRQ 0LFKDHO µ:KHUH GR ,QGLD¶V ELOOLRQDLUHV JHW WKHLU wealth?’, Economic and Political Weekly, ± *UHHQSHDFH Coal Kills: An Assessment of Death and Disease Caused by India’s Dirtiest Energy SourceZZZJUHHQSHDFHRUJLQGLDHQSXEOLFDWLRQV&RDO.LOOV *XSWD$NKLO Red Tape: Bureaucracy, Structural Violence, and Poverty in India, Durham, NC: Duke University Press. +DOGHD *DMHQGUD Infrastructure at Crossroads: The Challenges of Governance, Oxford: Oxford University Press. +DUULVV:KLWH %DUEDUD India Working: Essays on Society and Economy, Cambridge: Cambridge University Press. +HUULQJ5RQDOG- µ(PEHGGHGSDUWLFXODULVP,QGLD¶VIDLOHGGHYHORSPHQWDOVWDWH¶ LQ 0HUHGLWK :RR&XPLQJV HG The Developmental State, Ithaca, NY, and London: Cornell University Press.
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