India – Radical Notes

UCD’s Rejoinder to the KYS pamphlet

September 4, 2010 by Radical Notes Leave a Comment

University Community for Democracy (UCD)

The following is a rejoinder drafted by University Community for Democracy to the pamphlet circulated by Krantikari Yuva Sangathan titled “What is Ailing University Democrats”. We will first present what we see as certain basic misconceptions and flawed assumptions at work in way KYS has understood UCD, and then proceed to factually refute a number of statements made in their pamphlet.

UCD is a platform primarily consisting of students and some teachers of Delhi University. It was formed when many of us who were deeply offended by the way the University authorities had decided to evict students from their legitimate right to hostel accommodation decided to come together and protest against this eviction. In the course of our discussions, we concluded that the callous behaviour of the University administration in this instance had to be linked to a larger pattern of increasingly irresponsible and authoritarian governance in Delhi University. Hence, we decided to call ourselves University Community for Democracy. For us, democracy is a mode of governance and organisation which is transparent, open and inclusive. At the same time, while each organisation and individual harbours its own ideological worldview, the fact of coming together on this platform has not been to absolve those differences but to come together with a basic common understanding of the problem at hand. It is, therefore, a coming together of those from the Left and not elsewhere. While demanding our democratic space from University authorities we have also tried to realise what democracy can be for us in our own workings as a platform. All our meetings are held in the open (most of them have been held in the lawns of Delhi School of Economics), all decisions are taken in these open meetings, which are duly recorded in minutes put up on freely accessible internet forums. We do not claim to be saviour of anyone in the University, the downtrodden, the working classes or the poor. We have no claim to be any revolution’s vanguard, or harbingers of a future ideal society. However, each of us is actively engaging with how we want to visualise an ideal society. Ideologically some of us are committed Marxists, some are liberals, while most of us are still exploring our paths in the world of ideas and commitments. Some of us are members of other organisations. All we demand is that these not be reactionary, communal, sexist or casteist.

The KYS pamphlet demonstrates their failure to understand this basic character of the UCD. The central paradox in their formulation is that they see the UCD as an organisation. It isn’t. UCD was always conceived as a network of those who shared a basic understanding of a common problem afflicting both the University in particular and in the city in general. So when the weaknesses of UCD are pointed out, it seem to assume that UCD is an organisation with a defined manifesto in rivalry with (and thereby judged retrograde in comparison to) another organisation like KYS, whereas UCD was loosely assembled as a forum precisely for individuals and organisations like KYS and NSI to ally their valuable experience with mobilisation and work together. The very fact that KYS has criticised UCD for its politics vis-à-vis KYS demonstrates that they saw themselves separate from it, and thereby missed the spirit behind which the network was formed. Indeed, one could go on to argue that the very distinction drawn between UCD and KYS as distinct organisations confirms the strange sense of competitiveness one sensed throughout from KYS members when they consistently spoke (and Sujit reinforces this sense in his reply to Bala) of some issues, such as rent regulation, as rightfully their forte, given that they raised it months before UCD was born. The fact is that UCD was never in competition in KYS, for the efforts of KYS members was considered part of what UCD was meant to be. That is why one was rather bewildered when one found KYS drafting pamphlets on concerns that overlapped with those of the UCD without once informing or involving fellow members in the UCD. Indeed, upon being confronted on this issue, KYS members spoke of their struggle as a “separate” one that needed no prior permission from the UCD. This position seemed to miss the point entirely (no one was demanding that KYS ask for ‘permission’ anyway), for it assumed that the two groups were rivals competing for the same political claims rather than colleagues fighting in the same battle. This attitude, destructive to cooperative participation and petty, to say the least, also finds its way into Sujit’s so-called ‘critique’.

It is also for this reason that one wonders at the naïveté of those who claim that attacking the behaviour of KYS members is a ‘personal attack’, as if the ‘personal’ is somehow a pristine space cleansed of politics and ideology. Indeed, the questions being raised about KYS members’ personal maturity is an intensely political question, especially given that (and this will be understood by those who regularly attended the meetings and did the work) the same KYS members rarely leant themselves to the actual labour of UCD activity (drafting and printing posters and pamphlets, campaigning in colleges, etc). Surely one’s own physical contribution is as much a measure of one’s politics as ideological contestations about the working class. In that sense, it is not simply “fashionable activism” to ask the question of who did what, for some have consistently worked harder than others to make the UCD campaign successful, and those ‘some’ have a right to be ‘resentful’ when others who never fully contributed to that process later claim that the process was undemocratic and politically flawed. The question needs to be asked: as UCD members, what did the KYS members do to improve the process? Having had all the problems they had, at what point did they make the space their own to do something about it? Merely making suggestions at meetings for others to implement is not enough.

Speaking of making suggestions, the KYS pamphlet claims that the valuable ones made by KYS members were “swept under the carpet as mere issues of modus operandi or as divisive tactics”. Besides being factually untrue, as the minutes of the meetings show, it is rather reductive to claim that an imperative to focus on a meeting’s agenda is tantamount to undemocratic repression of criticism. Any member of any organisation knows that meetings have to be conducted with a certain discipline, and cannot simply become occasions for everyone to mouth their opinions on any matter generally concerning the organisation (we hope KYS meetings function with this discipline as well). Those larger questions are of course very important, and it was even felt that a separate meeting should be called specifically in order to discuss the ideological differences that had been raised in previous meetings. Alok, a KYS representative and member of the UCD, was categorically asked to take the initiative to decide a time for the meeting. But taking initiative is precisely what KYS members haven’t been doing in the UCD campaign, so it isn’t surprising that such a meeting was never held.

The KYS pamphlet confirms our argument when it states that “in the very beginning in UCD meetings there have been activists and organisations that have questioned the constituting logic of the forum” (emphasis added). So basically the KYS saw itself as an advisory committee whose only role would be to teach us how to conduct ourselves, to point out faults in our “constituting logic” before it had even been built! This brings us back to our earlier point: UCD wasn’t allowed to grow because KYS seemed determined to see themselves as critical outsiders rather than as participative insiders. They were quick to criticise at every step of the way, without contributing offering concrete suggestions or constructive proposals on what alternative to follow. Many members found this behaviour by KYS members disruptive, and their objections have been noted in the minutes of more than one meeting. In this regard, refer to the minutes of the following meeting:

Minutes of UCD meeting on 22nd July 2010 – pertaining to an incident on 21st July

http://www.facebook.com/home.php?#!/topic.php?uid=135067129852679&topic=211

“The meeting today began with a discussion on the issue of an incident at Hans Raj College where the KYS and CSW (who are members of the UCD) were distributing their organisational parchas and running a parallel campaign on similar issue at a time when they had committed to UCD work – they were to be at Daulat Ram college as part of the UCD college campaign. The discussion was hoping to arrive at a sense of how we will work together as a collective and proceed with our campaign in a democratic manner, without fragmenting into competing campaigns, since most people felt that the UCD is a collective for moving ahead with the issues offset by the Commonwealth Games in the city, and now, the more specific issue of hostel evictions in the university”.

“Also, while everybody agreed that there was absolutely no issue with the fact of individuals and groups will be part of separate agendas and campaigns, we did think it necessary that we must not allow this to become disruptive to our campaign’s efforts. That was raised in the context of how the KYS and CSW apart from absenting from the slotted work at the slotted time for UCD activities were conducting their own campaign on rent regulation (an issue that had come up in the previous meeting to be brought out in the next UCD parcha) and demand for more hostels, and even while they distributed their pamphlets they did not distribute the UCD pamphlets. Some members of the UCD who went to Hanraj yesterday when they came to know about it, brought up the incident in the meeting as an issue of honesty and trust of the collective which consists of individuals, groups as well as organisations. KYS did apologise for the comments by a member of their team. The latter was quoted saying that their campaign and pamphlet were better than that of UCD”.

“While members of the KYS and CSW said that their being at Hans Raj was a result of confusion, there was disagreement about this since it was seen as a breach of trust, going against the spirit of this campaign and collective. While some members assumed KYS and CSW had stepped out of the campaign already, KYS and CSW denied such a claim”.

“Finally, to end the matter a resolution was passed in the house stating that there was a case of misconduct by KYS and CSW relating to the incidents of the previous day. (Out of 24 people, 14 voted in favour of the resolution, 4 voted against, 6 abstained from voting)”.

In this regard, one could even call the KYS duplicitous, because they wore down the UCD at a time when, unlike KYS, it was still a very new campaign at an early stage of its formation. Thus, while their 5,297 words of vitriolic diatribe might sound radical to those dissociated with the workings of the campaign, we maintain that to decry a process one never contributed to help or improve is possibly the most flawed form of politics. When theory cannot give direction to praxis it is rendered meaningless.

And now we have this long litany of accusations against us, trying to prove how we are not an organisation that can lead students of oppressed classes for a joint struggle with the working class to destroy class and emancipate the world. Both the KYS pamphlet and Sujit’s reply to Bala is littered with rather self-conscious references to “petty-Bourgeois” backgrounds as somehow endangering one’s commitment to politics. Perhaps KYS has to ask itself whether experiential politics can be stretched to such an idealtypical situation that anyone who is not dalit/poor/muslim/woman/gay/tribal cannot speak, as if access to capital necessarily yields a flawed political subjectivity. Of course it is important to remember one’s class position, but there is also something to be said for those still trying to become politicised despite their privileged subject positions. Mocking these attempts the way the KYS pamphlet does is precisely what discourages fellow “petty-Bourgeois” folk from making even that small effort, and makes politics into a club rather than a movement. That is the brand of politics KYS espouses, and it is not one we endorse. Thus, when KYS accuses us of not being this or that, the irony of the matter is that we have never claimed to be what KYS accuses us of not being! Unlike the KYS, we do not use Left rhetoric merely as a means to vilify, nor are we impressed by KYS’ attempts to claim the moral high-ground by claiming to work for the oppressed and exploited of this country (itself a suspect claim). For most of us in the UCD, our work has been a discovery of the politics of democracy and protest. We are not here to wear medals for being the most radical. If we were, then KYS has already declared itself the winner, and we happily concede them the title.

***

The following section consists of a point-wise rejoinder to the slanderous allegations the KYS has levelled against the UCD. Sections of the KYS pamphlet have been reproduced in bold and our responses follow in standard lettering. We have not commented on all the factual inaccuracies, for there are far too many and unlike KYS, we have work to do for our campaign. What we have highlighted are only the sections that disturb us the most. We have also consciously chosen not to respond to the large passages in the KYS pamphlet that pontificate about the nature of the working class. There are countless critiques and counter-critiques of their position within Marxist theory, and doing so here will digress from our major points of contention. Nevertheless we thank them for their effort to educate all of us.

1. Regarding teachers and internal assessment

These teachers, acting as pied-pipers and humming the threatening tune of internal assessment, drew their hapless students to the venue by taking their classes there. Students (the majority of whom were oblivious to the issues raised), were obviously not taken into confidence when they were made to come to the “hunger strike” site.

This is a straight lie. No students were ever threatened with internal assessment. Moreover, we are offended by the cavalier recklessness with which KYS questions the credibility of teachers who have been crucial for stimulating progressive debate in the University for decades, and who have stood by the student community in countless cases of injustice against students.

2. Regarding rent regulation

Let us take the example of rent regulation raised during the “hunger strike”. Firstly, UCD began its campaign with absolutely no concrete demand of rent regulation. The forum was forced to pick up the issue of rent regulation in addition to the issue of hostel eviction because it was constantly accosted by the majority of students who had never even lived in college hostels, and had for a long time been faced with the problem of escalating rents. There was also urgency in making rent regulation an active demand of the UCD campaign because some other organisations had already launched a full-fledged campaign on rent regulation in the city. Hence, it was more in a competitive spirit than with any serious commitment and understanding on the issue that rent regulation became part of UCD’s charter of demands.

Please check our very first parcha, released on . It reads: “It (University) has thus become an accomplice in the larger processes of reckless corporatisation that the whole city is undergoing in the bid of become a ‘global city’. This has left students at the mercy of private accommodation, with its unregulated rents and precarious guarantees. Rents are rising in anticipation of the increased demand for PGs and flats, forcing many existing residents to move out and making accommodation unaffordable for incoming residents as well. The University had made no attempt to devise a mechanism to control or subsidise rents”.

Please also refer to the minutes of the following meetings:

Minutes of UCD meeting on 3rd July 2010

http://www.facebook.com/home.php?#!/topic.php?uid=135067129852679&topic=193

“There were concerns shared about whether we would like to gradually broaden this to wider struggles in the city. It was accepted that we would be broadening our ideas gradually and linking it to wider struggles. This is why we have tried to form a larger forum and this is a campaign within it at the moment” (the ‘this’ we are talking about is the campaign concerning hostel evictions).

Minutes of UCD meeting on 20th July 2010

http://www.facebook.com/home.php?#!/topic.php?uid=135067129852679&topic=207

“There was a brief discussion about what our approach should be gradually, if we should focus on hostel evictions or also give more prominence to the issue of unregulated rents and problems in the neighbourhood since many students live in private accommodation”.

The very fact that KYS makes this claim despite all this history is itself evidence of the competitiveness prevalent behind the KYS’ anxiety to declare their campaign on rent regulation as the only legitimate one, and to declare all others as motivated “more in a competitive spirit than with any serious commitment”.

3. Regarding the decision to approach University authorities

This is precisely why UCD’s “hunger strike” targeted the audience in Arts Faculty (a transit point for the student/ teaching community), and not any tangible authority (which in this case should really have been the Government of Delhi). And this is why the best that UCD can do on the issue of rent is to demand rent regulation from the Dean of Colleges! Quite rightly, their delegation was informed by the Dean of her incapability to regulate rents since this was way beyond the University authorities’ jurisdiction and responsibility. We return to the fundamental question: why does the University remain the centre of UCD’s resistance when authorities beyond the Vice Chancellor are to blame, and when there are many people apart from students/teachers who are adversely affected by unregulated rents?

We approached the University authorities – the Vice Chancellor – because he is responsible for ensuring a safe, affordable accommodation for the students of Delhi University. In the past (2006) there have been attempts to enlist all those PGs and private accommodation places with the University in order to centrally keep a check on rents. Similarly, on the issue of workers, being the principal employer the University is again directly responsible for seeing to it that workers are paid minimum wages and have proper housing and access to basic facilities.

4. Regarding visit to Bhalaswa

UCD now seeks to locate the working class and its struggle in a far off resettlement colony called Bhalaswa. Unfortunately, judging by recent email correspondences between UCD and students of the Women’s Development Cell (WDC) in Miranda House, the trips to Bhalaswa are being envisaged by the students more as extra-curricular activities. This indicates that UCD’s form of politics is really incapable of building a long-standing and formidable unity between the student community and working class.

It was decided in the very beginning of the campaign that UCD would establish connections with others in the city affected by the Games. It was felt that since students were not the only ones held hostage by the Games, it was necessary to forge ties of solidarity with other organisations working on overlapping concerns, while recognising that our constituency remained the University. In the case of Bhalaswa, we were extended an invitation by people working with Bhalaswa Lok Shakti Manch to come and visit their resettlement colony. The trip was not an official UCD objective, and the students who went did so in the capacity of individuals wishing to extend their support to the Bhalaswa movement.

Please refer to the minutes of the following meeting:

Minutes of UCD meeting on 5th August 2010

http://www.facebook.com/home.php?#!/topic.php?uid=135067129852679&topic=219

“Kaveri forwarded a message which came from the group from Bhulaswa who came for the protest meeting saying that people interested in visiting the Bhulaswa resettlement site could do so on Tuesday. Please leave your number so that this can be arranged”.

In any case, even if the trip had been an official UCD activity, it would still not justify the KYS’ mocking epithet “extra-curricular”. Most of us may never know what it is like to be a construction worker or a displaced adivasi, but visiting places like Bhalaswa is valuable in and of itself as the smallest of attempts to understand the plight of others, even if it can’t bring about the revolution of the working class that KYS is obviously so successful in doing.

5. Regarding workers’ protest

The same day that UCD began its “relay hunger strike”, workers down the road were protesting against their severe exploitation under various CWG construction projects. UCD failed to respond and join the struggle. The message, therefore, sent out was clear enough—we will participate only when we are in charge and not workers, and we will raise workers’ issues only as an addition to our never-ending list of “democratic” demands. Considering this, are not the issues of workers’ rights being raised in tokenism, i.e. only when it suits them?

Do not brush aside the practical aspects of the campaign. We are not a trade union. We are too small a force to claim to organise workers at the construction sites all over the University. If we were 250 people, we might have been able to attempt to organise workers, but when those actually willing to labour for the campaign number 20 or less at any given time, we cannot (it would have helped if KYS had added to our numbers of working campaigners). But as a university community we have stood against construction work in the University that violates legally sanctioned labour standards, and have integrated it into our demands. Also, the decision to sit on a relay hunger strike was taken well over a week before it began and posters had been put up. Meanwhile, the KYS/CSW workers protest was decided and its posters put up a day before. And then too, in at least three different venues we found that KYS/CSW had pasted their posters corner to corner over UCD ones. If this is not malicious what is?).

6. Regarding Gandhi Ashram

The first pamphlet printed by the UCD spoke of the need to build communes in places off campus. In fact, a team met with the management of a Gandhian trust (funded by Ministry of Social Justice) which ran a hostel near Kingsway Camp, called Gandhi Ashram. The place soon began to be promoted via e-mails etc. almost like any other private accommodation; the purpose being to provide a space for those still desperately looking for affordable accommodations and also to provide a space for regrouping when things got rough during the campaign. Ironically, the Gandhi Ashram hostel is meant for poor Dalit school students who were obviously going to be displaced if college students moved into the dormitories. No one seemed to reckon with this inevitability while the plan was still being hatched.

What we also found disturbing about the Gandhi Ashram plan was the desire of creating an isolated “democratic” space. The message being sent out was nothing but we can create our own isolated commune-like space in this big bad world. This approach stems from the sectarian University-centric politics of the UCD highlighted above, and also from a non-revolutionary conceptualisation of commune life. For many participants in UCD, the commune with its base in Gandhi Ashram was an apparent ‘pre-figuration’ of a new society, whereas it was far from that. Commune was being envisaged as a centre of ‘counter-culture’—an oasis in capitalist wilderness. Interestingly, this is a very familiar trope—it is based, both at once, on a vision of a transformed society without real hope for a process of transformation. This is because it is based on the vision that the lives of a minority can magically change without transforming the whole. This is, after all, how (phantom) revolution itself, is envisaged according to the pipe-dreams (joint-dreams?) of petty bourgeois students/intellectuals who enjoy the comforts/security of generous remittances from home—‘let us, at least, as a small privileged community enjoy revolution making’.

Of course, as pointed out by us in the meetings, it was nothing but ridiculous that UCD spoke of building a commune in a place which was actually going to be charging the students Rs. 1500 per bed and where 6 to 8 women students would have to live per room. How can a commune work within a market structure, and how can a place which gives you no control on the rules and regulations to be implemented, become a progressive, commune-like accommodation?! Despite these criticisms, UCD went ahead and would have signed a MoU with the Gandhi Ashram management, if it wasn’t for the sheer lack of students interested in the place. In fact, just so as to get students to join the bandwagon, emails were sent out exaggerating the facilities available at Gandhi Ashram. In the interest of pulling a crowd, the green lawns of the Ashram were highlighted. Meanwhile, it was downplayed that no fooding would be available at the place and that this was going to be a
dormitory system.

The lies continue. Firstly, Gandhi Ashram was visualised as a means to tackle the practical problem of students who couldn’t find safe and affordable accommodation (particularly girls, who also face the problem of safety). We never claimed it to be an isolated island of counter-culture, but yes, a space where those resorting to that accommodation could critically engage with the problem at hand, and therefore with ideas like a community kitchen. No Dalit students were going to be displaced, because the rooms being given to us were at that time unused. A member of KYS was even present as part of the team that went to Gandhi Ashram to figure out the modalities of making this arrangement. No facilities were ever “advertised”, and all that was publicly declared was the availability of Gandhi Ashram as an option (though of course, if KYS sees any form of publicisation, whether press releases to the media or circulation through emails, as part of a larger Bourgeois capitalist conspiracy, we advise them to kindly sharpen their political understanding; sophomoric regurgitations of Das Kapital isn’t going to cut it). Not once was it thought of as a final solution, but only as a temporary arrangement for students who had not found or could not afford accommodation elsewhere.. Regarding food arrangements, we were in discussion with the Ashram authorities about the possibility of expanding kitchen facilities. And as for the charge of Rs.1500 per month, that price is about one-fourth the cost of accommodation in the outlying regions of North Campus. At any rate, not once did KYS members suggest an alternative to Gandhi Ashram as a possible venue to rehabilitate students who could not afford anything else, which is ironic given their constant chest-thumping about being champions of the poor. Instead of appreciating the attempt made to lend some respite to students while carrying on the work of politicisation through the campaign, all the KYS members seem capable of doing is ill-intentioned criticism and hysterical slander.

***

We hope this rejoinder will put to rest the false allegations made by KYS against UCD. We do not have any faith in KYS’ capacity to introspect about the falsity of their claims. We only hope that the wider audience privy to this debate will learn to take KYS statements with a pinch of salt. Our experience with the KYS has been one big negative lesson, and we are glad that our work now proceeds far more productively and democratically. Anybody wishing to know more about the UCD, to really see how it functions for themselves, is always welcome to visit us on our face-book page, to join our googlegroups mailing list, or to attend our meetings. We are always open.

Filed Under: DIARIES Tagged With: Delhi, Education, India, Students

New Socialist Initiative’s Response to Radical Notes’ Publication of KYS Pamphlet

August 31, 2010 by Radical Notes 1 Comment

Comrades from Radical Notes,

In the light of your publishing of the KYS “critique” on UCD, where there is a substantial section making allegations at NSI as well as AISA and campaigns and cyber space activism, we are perturbed by the fact that you have published it without clarifying with the maligned groups. Do we understand this as your endorsement of KYS’s ‘critique’?. You are of course free to publish what you wish to, but isn’t there a political issue when you are publishing such a document which questions the credibility of organisations and campaigns without first having felt the need to clarify with the concerned groups. More so, because you happen to have very easy access to these people, groups and campaign. It was understandable if your post was a part of an already ongoing debate on the nature of campaigns or any organisation in the university.

We would have appreciated if a credible website like you should have brought us in a debate rather than forcing us into a response pre-set by the tone of the KYS ‘document’ which is largely malicious. In our understanding KYS’s mail is not intended towards any debate but is infested with mal-intent as far as its take on organisations like NSI or AISA or Safe University Campaign.

Since you yourself function with credibility as a left group and mainly also in cyber space, you might have felt the need to engage with the organisations/people/campaigns to gauge the credibility of the KYS ‘critique’. Such a method of functioning, unintended though, ends up privileging one organisation.

We would appreciate if you would publish this email with the NSI response to KYS pasted below along with two NSI documents (1 and 2) attached. And a comradely suggestion that you can contribute to the UCD campaign with your solidarity as well as first hand critique.

On Behalf of New Socialist Initiative
Amrapali Basumatary

Dear friends and comrades in UCD,

Below is our response to comrades in KYS who have taken the initiative to produce a lengthy critique of NSI while critiquing the UCD.

While NSI has till now not said anything, some individuals and organisations have falsely implicated NSI without having full and proper understanding of NSI and its politics and posited the debates as KYS vs NSI battle. This is the first mail that NSI is writing to the group. We have not been asserting our group’s identity vis-a-vis UCD because we have a clear understanding that UCD is a platform of various individuals and organisations who have come together for a basic minimum programme. While some members of KYS and NSI might be old acquaintances, there has been no history of political engagement within the university between them. It is politically callous to project the issue in this binary.

Dear comrades in KYS and its fraternal organisations,

In the wake of the accusations (critique?) of UCD that KYS has posted in the UCD email group, we feel bound to respond, while respecting KYS’s ideological position that emails (cyber space) are “bourgeois phenomenon”. As it is clear that in the critique you have maligned constituent organisations of the UCD, especially NSI and AISA and resorted to falsities and misrepresentations about NSI, while also maligning campus campaigns like the SAFE University campaign. NSI is not a sectional organisation which focuses merely on the students, teachers and the university. It is a political-ideological platform constituted of people coming from different progressive radical movements. So when you say that we have “no work amongst workers, i.e., no trade union to speak of, and basically do nothing to promote workers’ self-organisation… NSI has more presence in the NGO networks than in the existing workers’ movement”, that we instrumentalise workers’ issues to appear ‘radical/cool’, it is nothing short of lies.

Here is a short quotation from the introductory document of NSI –

“It is a platform in the making consisting of comrades from different streams of life and left politics. Some of us are engaged in trade unions for unorganized sector workers, some of us are active on women’s issues, with particular emphasis on bringing class in women politics, while many other among us are active in theatre and university level discussion cum agitational groups as well as struggles for dalit emancipation and anti-communal struggle.”

Following are some of our points in response to your accusations or critique as you wish to project it as.

Foremost, we wish to ask KYS if the accusations were made consciously or under the duress of a sheer lack of knowledge/analysis and information about NSI?

Firstly, NSI is a constituent of the UCD. So if you are writing a critique of the UCD, stick to that rather than using it to get to other left organisations like NSI which is part of it. NSI does not represent UCD politics. Of course ideas are brought up and people debate, discuss and thereafter accept or reject as per the larger consensus in UCD.

Secondly, the NSI which is part of the UCD is the North Campus Delhi University unit, like your Delhi State Unit. The focus of this unit is in the university. There are other NSI units who work in different areas and constituencies with different focuses in many parts of the country. The way we understand a formation like the UCD is that it is a composite group of left organisations, individuals, liberals, progressives and other who came in specifically because of university related concerns. NSI with its committed left politics, is a part of it because it thinks the issues taken up by the UCD is intrinsically connected to larger issues of capitalism, democracy and university space.

Thirdly, UCD group mailing list is not the platform for you to thrash out your angst/anxiety/anger/enmity against any organisation. There could be a healthier way of dealing with your problems and critiques, in a polemical manner rather than intsrumentalising the UCD space.

We appreciate that the KYS is committed to revolutionary working class politics like the NSI and we take this opportunity to tell members of the UCD to read and know more about NSI. For a short introduction of NSI in please visit http://nsi-delhi.blogspot.com/2010/05/for-those-who-would-like-to-know-little.html#more. Any further mails about NSI or to NSI should be sent to this email rather than using the UCD mailing list. Write to us at delhi.nsi@gmail.com and read our Manifesto (title – A WORLD FOR THE WORKERS! – A FUTURE FOR THE WORLD!). We invite comments and critiques on our manifesto. We take this opportunity to initiate a polemical exchange on left politics. And hereby we are attaching two documents – a) introduction of NSI and b) NSI’s draft manifesto.

To initiate and enhance productive left political debates, please share your literatures with us.

laal salam,

NORTH CAMPUS UNIT Delhi University, New Socialist Initiative (NSI)

Editorial Note: If publishing KYS’ polemical piece amounts to Radical Notes’ endorsement of the organisation’s position, then we would be guilty of endorsing many others, including that of NSI, as we have published at least one of its documents too. We publish these materials for the importance of the questions that they raise. Since this letter is in direct response to what has been published in Radical Notes, we are obliged to publish it as it is; however we would still expect a substantial engagement with KYS’ note, touching upon the issues that it poses. Comrades from NSI would grant that the “mal-intent” and malice that they find in the pamphlet might not be visible to others, who are more interested in wider issues concerning the discursive embedding of students/university politics in larger class processes and praxes.

Filed Under: DIARIES Tagged With: Delhi, India, Students

The Significance of the Vedanta Decision

August 29, 2010 by Radical Notes Leave a Comment

Campaign for Survival and Dignity

The rejection of Vedanta’s application for permission to mine in Niyamgiri, Orissa, is being hailed as a step forward and a change in the country’s policy discourse. It is indeed all that; but it is crucial to understand why.

The project’s main problem was that it violated the Forest Rights Act’s provisions requiring “recognition of habitat and community forest rights” and the consent of the gram sabha prior to taking forest land. This sounds like technical legalisms. But the basic point is that, under the law, the Dongria Kondhs have the power to protect and manage their forests and lands. Simple, but unprecedented; it has never happened before.

Contrary to much of the media coverage, this is not a reflection of the Environment Ministry or the forest bureaucracy suddenly becoming “pro-tribal”. Even as Vedanta stands rejected, many other equally illegal projects are going ahead; most recently, the Polavaram dam, which will affect literally hundreds of times more people, was given final forest clearance in total violation of the Forest Rights Act. Polavaram will also affect members of the so-called “Primitive Tribal Groups”, who were the centrepiece of the Environment Minister’s statement on Vedanta. Meanwhile, more than 15,000 hectares of forest land have been illegally given in principle or final diversion clearance in MP and Chhattisgarh alone since 2006. Meanwhile, the Ministry is promoting programmes that themselves do not respect democratic control and involve large-scale land grabbing.

So, then, why did it happen? Electoral compulsions of the Congress party, say some. Targeting of opposition-ruled States, howls the BJD. The Sonia touch, says the business media. All of which are truisms, but they miss the real point. Every ingredient of the Vedanta decision – the public sympathy; the Forest Rights Act itself; the govenment’s sudden sensitivity to adivasi issues; and, most importantly, the resistance of the Dongaria Kondh people – was a reflection of people’s struggles, in the area and elsewhere. Vedanta was not rejected because Rahul Gandhi or Jairam Ramesh decided on a strategy in their head. It was rejected because, steeped in betrayal, illegality and mercenary brutality, the state machinery and the ruling party was forced by its own need for people’s support to, just once, comply with the mandate of democracy and justice.

And this is the real victory of this decision. On its own letterhead, in its own words, a Central government agency has come out and said: we should not take resources without the consent of the people. We should not grab lands and minerals without respecting people’s collective mandates. Of course they are continuing to do so, as rapaciously as before. But they have exposed themselves, and shown through their own words that they no longer have even the fig leaf of law to hide their robbery. And they have in the process opened a new space; for now their future robberies will be counterposed, in law as in reality, against the decisions of people’s assemblies, a small step towards a real democratic collectivity and real social control over resources. Thus does the battle for democracy grow.

When the Forest Rights Act was passed, we described it as “a victory and a betrayal.” So too is the Vedanta decision – a victory for the heroic struggle of the Dongaria Kondhs and for the spirit of democracy; and a betrayal, because the government will not comply with its own words. The struggle goes on.

Filed Under: DIARIES Tagged With: Environment, India, Orissa, Press Release, Self-Determination

What is ailing University Democrats!

August 28, 2010 by Radical Notes 2 Comments

Delhi State Committee,
Krantikari Yuva Sangathan (KYS)

…THE INTELLECTUALS WILL ACCOMPLISH NOTHING IF
THEY FAIL TO INTEGRATE THEMSELVES
WITH THE WORKERS AND PEASANTS…
Mao Tse-tung

NOTE: This is a review and summation of the proceedings of the forum, University Community for Democracy (UCD). UCD is constituted of different individuals who may or may not belong to organizations. Apart from some dominant tendencies which we have criticized below, the forum has some well-intentioned individuals who have increasingly become discontent with UCD’s functioning. We have prepared this piece for internal discussion within our organization, but due to requests from certain friends in UCD, we are going public with it. It encompasses many points of criticism which we often raised in UCD meetings.

Recently, some University teachers and students in the north campus of Delhi University have been running a campaign under the banner of the UNIVERSITY COMMUNITY FOR DEMOCRACY (UCD). To use the words of the campaign’s founding members, the campaign is committed to fighting against “shrinking democratic space in the University”. The focus of the campaign has particularly been on the eviction of college students from university hostels, in the wake of the Commonwealth Games. A section of “left” intellectuals and “progressive” activists can be seen allying themselves with this forum. It has become fashionable for some to be seen in its meetings and, for those who navigate more in the realms of virtual reality, to trail the forum’s activities in cyberspace.

However, in the very beginning in UCD meetings there have been activists and organizations that have questioned the constituting logic of the forum. Most of such criticism was swept under the carpet as mere issues of modus operandi or as divisive tactics. The validity of the criticism raised was often lost to many of the forum’s participants who were hostile to organization structure, and hence, to criticisms coming from organizations. Even when some of our points of criticism were noted they were hardly addressed in a manner that reassured us of UCD’s commitment to the issues raised. The following pages are a delineation of this unfortunate fact.

At a time when the Commonwealth Games (CWG) are the focus of the media, many activities of the UCD come across more as publicity gimmicks than anything else. It is important for many of the forum’s participants to be seen resisting the Games but to do that they have to mobilize people on issues close to them. With little understanding on the issues concerning different people, UCD raises them in an opportunistic vein, just so as to galvanize different issues and use them. In reality CWG is the starting point and be all and end all of their resistance. And no matter how earnestly UCD denies it, this has been their strategy because right now the Games are the highlight of the season. Even before the University opened and the campaign could take proper shape; there were overt attempts to reach the media for coverage (such as forming media coordination teams and releasing press statements).

Even the “relay hunger strike”, or rather “skip one’s lunch” strike was no exception (it is interesting to note that UCD members sat on “hunger strike” from 9am to 9pm, which basically means they did not sacrifice their breakfast and dinner—In reality a relay hunger strike is continuous, and, thereby, includes people sitting on hunger strike twenty four hours—the term relay refers to somebody ending their hunger strike and another person taking their place). Since a “hunger strike” by University students and teachers is an eye-catching story for the media, it was more important to be seen in this act of drama even if the demands of those on “hunger strike” stood thoroughly misplaced. Sadly, so as to project a significant gathering at the venue of the “hunger strike”, students were actually subjected to authoritarian tactics by teachers supportive of UCD. These teachers, acting as pied-pipers and humming the threatening tune of internal assessment, drew their hapless students to the venue by taking their classes there. Students (the majority of whom were oblivious to the issues raised), were obviously not taken into confidence when they were made to come to the “hunger strike” site.

The fact that the demands of those on “hunger strike” were misplaced reflects nothing but a sheer lack of seriousness and understanding on the issues raised. It was the form in which the “relay hunger strike” raised certain demands that was highly problematic for it reeked of sheer opportunism and sectarianism. Let us take the example of rent regulation raised during the “hunger strike”. Firstly, UCD began its campaign with absolutely no concrete demand of rent regulation. The forum was forced to pick up the issue of rent regulation in addition to the issue of hostel eviction because it was constantly accosted by the majority of students who had never even lived in college hostels, and had for a long time been faced with the problem of escalating rents. There was also urgency in making rent regulation an active demand of the UCD campaign because some other organizations had already launched a full-fledged campaign on rent regulation in the city. Hence, it was more in a competitive spirit than with any serious commitment and understanding on the issue that rent regulation became part of UCD’s charter of demands.

To further delineate the opportunism with which the issue of rent was finally raised by UCD, we would like to bring the reader’s attention to the fact that although they are now talking of rent control; escalating rents are actually being conceptualized as a University neighbourhood problem rather than a general problem for migrants coming to the city (for further illustration of this point please see CSW and KYS’s paper). This is precisely why UCD’s “hunger strike” targeted the audience in Arts Faculty (a transit point for the student/teaching community), and not any tangible authority (which in this case should really have been the Government of Delhi). And this is why the best that UCD can do on the issue of rent is to demand rent regulation from the Dean of Colleges! Quite rightly, their delegation was informed by the Dean of her incapability to regulate rents since this was way beyond the University authorities’ jurisdiction and responsibility. We return to the fundamental question— why does the University remain the centre of UCD’s resistance when authorities beyond the Vice Chancellor are to blame, and when there are many people apart from students/teachers who are adversely affected by unregulated rents? To the reader who might still believe that raising the issue of rent regulation at the University level is perhaps what is immediately feasible for UCD, we have one question—has the life of the minority ever drastically changed without a transformation in the life of the majority? For example, can an individual educated woman today feel hundred percent secure and confident in a work space when the majority of women in society are still perceived as objects of sexual consumption and undeserving of career opportunities? Friends, the answer is no and experience has taught us that.

The question of the sectarian political approach of UCD was raised several times in the meetings. As argued by us in such meetings, issues and demands should really be raised in a way that they appeal to a larger section of people affected by the state’s inaction and its collusion with private business interests. In this way we connect concerns, struggles and militancy of different sections of people who are often segregated from each other due to the functioning of the system in place. For example, the student community and workers find themselves separated by work schedules, their class backgrounds, spatial settings/norms (in terms of workers being restricted to the space of factories/work sites and students to the space of their classrooms), etc. As a result we need a politics that paves the way for a combined struggle by the different oppressed sections of society. And it is only a combined struggle that can create an effective front of resistance to the onslaught of oppression and exploitation we are witness to. However, more than a generalized struggle against recent developments in the city, UCD’s initiatives are more sectarian than anything else. In fact, their particularized (University-CWG-centric) struggle is nothing but the substitution of the generalized working class struggle by ‘middle’ class intellectualism.

Mobilization of workers and strengthening of the working class movement is essential because in our society it is the working class that is in the majority. Its labour creates profit, rent and basically all the resources in society. Understandably then, if the working class fights back the whole system is paralyzed. Apart from the fact that it is the direct object of the most fundamental and determinative form of oppression and exploitation in capitalist society, the working class is the revolutionary class also because its interests do not rest on the oppression of other classes. In fact, precisely because its objective interest for its own emancipation is the destruction of class, it can create conditions for the liberation of all human beings in the struggle to liberate itself.

Thus, contrary to the middle class intellectual’s popular perception of the working class as just another identity asserted along with numerous other identities, the working class is actually a social positioning and not an identity. It is a position which is spread over different kinds of identities, and determines how and when the different identities will assert themselves. It is ultimately through the position of the working class that different identities can be united and radicalized into a wider anti-systemic struggle that goes beyond the form in which society exists. Realizing this, ‘old’ socialism has maintained the working class as its base and has constantly assessed the dynamics of the process of class in order to pursue its politics. ‘New’ socialism on the other hand, has made students/intellectuals their constituting base. In reality, however, students/intellectuals are divided amongst different class trajectories. To put it more accurately, students abstracted from their class position have come to be envisaged as agents of ‘new’ socialism. Indeed, ‘student radicalism’ which is actively promoted by ‘new’ socialism is a by-product of making students an identity devoid of class.

It is a fact that students who join universities like Delhi University (DU), are from different classes. The trend in DU is that students from working class backgrounds generally join the peripheral and evening colleges of DU. They are mostly youth who: a) have studied in government schools, b) come from the Hindi medium background, c) who do not usually get admission to college hostels considering their 12th class schooling, d) are those who really struggle to cope with rising college fees and English medium teaching/coursework. Students from petty bourgeois backgrounds are quite the opposite—a significant number of them have studied in respectable public schools, get admission to the best north and south campus colleges of DU, and are generally the first to get admission to the limited college hostels of DU.

As a result of this abstraction of students’ class backgrounds, forums such as UCD end up raising issues of students in a manner which isolates them from the issues of the working class. This reduces the possibilities of unity between the student community and the working class. To delineate this fact it is best to highlight the issue of rent regulation again. Rather than identifying rent as a problem affecting the student/teaching community as well as workers (most of whom live on rent near industrial belts in Delhi), UCD chose to raise the problem of rent only within the ambit of the University area, and demanded rent regulation from University authorities alone. By refusing to raise rent as a generalized concern of migrants in the city, UCD has simply encouraged the student community to see this as a problem specific to them. Having effaced the issue of class struggle in the immediate locality (the immediate locality being issues of working class youth/students/construction workers, etc. in the University), UCD now seeks to locate the working class and its struggle in a far off resettlement colony called Bhalaswa. Unfortunately, judging by recent email correspondences between UCD and students of the Women’s Development Cell (WDC) in Miranda House, the trips to Bhalaswa are being envisaged by the students more as extra-curricular activities. This indicates that UCD’s form of politics is really incapable of building a long-standing and formidable unity between the student community and working class. Its politics, in fact, inculcates within students a PHILANTHROPIC approach to working class issues, and little or no realization of the significance of class struggle for the transformation of our society. Instead of unity and combined struggle, UCD’s form of politics inculcates a perception/political tendency in the student movement to i) see the working class as a “mass of laboring poor” and not as a class which embodies itself even in the student constituency, ii) to perceive the issues of the working class as markedly different from those of students, and at most, only momentarily connected/’aligned’ with issues of students.

It is not only that the ‘new’ socialists deny the class background of the student community. They also, by denying students their varied class position, end up trying to mobilize only those who come from petty bourgeois backgrounds. As a result, organizations in UCD, such as New Socialist Initiative (NSI) are never seen raising issues of Dalit students who struggle to get admission in DU, of working class students who struggle to pay escalating college fees, or basically, any problem faced by students coming from government schools. In reality, for them, issues of those studying in peripheral/evening colleges or of those studying through correspondence/non-collegiate board are supposedly beyond the concerns of student activism. It is the issues of students studying in the big north campus colleges that are the central concerns of such organizations. For example, such organizations strictly function according to the University calendar. They will be active only during the actual academic session (i.e. between July and March when classes are on), and, will be mostly seen organizing seminars—these being a hot favorite of students from petty bourgeois backgrounds, who enjoy debating theories thrown at them in class. Furthermore, their campaigns in the University are centered on certain pet issues of students studying in a select few north campus colleges. These include protests against college hostel rules; night vigils/candle-marches to ‘take back the night’ or presumably to establish a ‘safe’ university campus somehow; etc. One wonders, how such campaigns actually address the concerns of the majority of students—many of whom do not stay on campus and are denied hostel admission due to the ‘lack of merit’.

Of course, when we as participants in UCD argued how necessary it was to mobilize the working class which is in the majority of those exploited in the name of development, grand events like CWG, etc., our point was noted. UCD posters soon began to carry slogans highlighting exploitation of workers, and as a gesture workers are now talked about in some of the UCD meetings. But the form in which workers’ issues are being raised by them is fundamentally paternalistic and patronizing. In a sympathetic mode the forum speaks of workers and other vulnerable sections of society, but no workers are part of the joint forum. Neither does the forum do anything to promote workers’ self-organization, nor does it participate in workers’ struggles. Making patronizing trips to resettlement colonies in the city, just so as to “investigate” and “report” the plight of slum dwellers, are more measures to appease angry activists in UCD and clear one’s conscience than to draw a formidable, active and organic link between the University community and the working class.

In fact, the recent trip to Bhalaswa was merely a gesture—a move to forge, in haste, some semblance of an alliance with the working class. No way does such a gesture promote self-organization by workers. In the case of Bhalaswa, UCD immediately began promoting a group working in the area, of whose politics they have little knowledge. In fact, in the interest of ‘alliance making’ they have refused to interrogate whether the group really represents the voice of the oppressed in Bhalaswa or is just another bourgeois oppositional group. Similarly, UCD has not taken on the responsibility of assessing, themselves, the actual class dynamics working in Bhalaswa. It is simply assumed that all those residing in resettlement colonies/slums like Bhalaswa belong to the same class composition, whereas the ground reality is more complex. Clearly, UCD’s form of politics, i.e. ‘alliance-making’ is highly problematic. This is because it simply absolves the forum of questioning the constitutive logic and politics of the organizations/groups it is allying with. It also absolves the forum of the responsibility of organizing those constituencies of people themselves. Thirdly, such form of politics leaves ample space for a lot of opportunistic maneuvering. In other words, the forum can move in and out of such alliances, depending on their own calculated interests. An important question arises here, what will happen to these alliances once the CWG are over? Well, expectedly, they will dissipate as quickly as they emerged. The analogy of a cinema hall is perhaps apt to explain this inevitability—just like everyone comes to watch a film in the theatre, cry/laugh together and then go their separate ways, most UCD groups/individuals will move on from the momentary ‘alliances’/joint initiatives they have made during the drama of CWG. A few of them, of course, will leave with plum NGO jobs in hand, and an ‘activist’ image that they can thrive on.

Hence, the point that we are trying to drive home is, that UCD can talk about workers and claim to be radical right through, whereas students/teachers continue to run the show while workers are merely expected to follow and indulge in experience-sharing. Workers’ issues then become just another ingredient to be added to cooking pot of resistance. Friends, the fact is that the forum’s form of intervention is limited to the university community responding on workers’ issues but doing nothing otherwise to help build workers’ self-organizations. Is it not true then that the University democrats finds workers’ issues “good” when they are OBJECTS of reform and concern but not when they are SUBJECTS of the struggle against the system? Here it is perhaps best to highlight the recent struggle of construction workers at the Miranda House CWG work site and UCD’s response—or rather lack of response to it. Friends, since the beginning of August construction workers and their trade union have been protesting against the Miranda House officials for non-payment of the workers’ long-standing dues and the violation of several labour laws. The same day that UCD began its “relay hunger strike”, workers down the road were protesting against their severe exploitation under various CWG construction projects. UCD failed to respond and join the struggle. The message, therefore, sent out was clear enough—we will participate only when we are in charge and not workers, and we will raise workers’ issues only as an addition to our never-ending list of “democratic” demands. Considering this, are not the issues of workers’ rights being raised in tokenism, i.e. only when it suits them?

Interestingly, some participants in the University Community for Democracy, who openly claim their “left” leanings, have unhesitatingly claimed in meetings that there is nothing wrong in particularizing the struggle since the University is their ambit of movement and sense of being. What we perhaps need to add here is the fact that when they are particularizing the struggle to the University, they particularize it even further by only raising issues of a select section of the University community. Such an approach defers the need to generalize issues of struggle, which is why people end up raising struggles in isolation. Such campaigns lose steam, credibility and relevance since they do not tap on certain organic links between their concerns and those of other affected sections in society. Of course, the aforementioned approach is nothing but opportunistic. By keeping the campaign University specific such participants aim for greater projection of themselves in the student community and media (which prefers to highlight University issues any day). By investing all their energy at the University level such participants seek a radical projection of themselves during DUSU elections, etc. This, beyond doubt, is a calculated move by many so called left intellectuals and groups in UCD. It is reflected in the larger party politics of such groups, and also in the double standards maintained vis-à-vis the entry of NGOs in the forum’s programs.

CPI(ML) Liberation, the parent party of AISA (a “left” student organization), in the interest of electoral victories has been allying with the RJD and sometimes with the JD(U). One moment it can be seen opposing the traitor Communist Party of India-Marxist (CPM) in Bengal, and the next moment it can be seen allying with the CPM in the Bihar Assembly elections! The same kind of double standards was replicated when we opposed the entry of NGOs in the protest meeting held on 30th July and AISA supported us, but then went on to invite the same NGO person to their own program against the Commonwealth Games on August 2, 2010! Needless to say, with elections round the corner crowd pulling tactics become more important. We know for a fact that there are reservations within AISA’s own cadre about participating in UCD, yet it continues in the forum for electoral gains.

It is very disturbing that NGOs which are bodies hugely funded by exploitative governments or by multinational corporations, are provided space on platforms of resistance against exploitation. The history of NGOs tells us that they are compromised bodies which sway on issues depending on the terms and conditions of the funding they receive. They have become a big employment recruitment network and that’s about it, for their work amongst people is channeled more towards ‘welfare’ than towards transformation of society. Instead of using its own agencies to provide for people, the state has been retreating from the social sector, leaving the space open for NGOs. NGOs simply use the limited funding released by governments and non-government organizations so as to absolve the state of its larger responsibilities. And to do this they unhesitatingly exploit a cheap labour force. For example, NGO workers (‘activists’) on the ground receive a meager salary compared to NGO employees in the higher echelons.

Interestingly, by arguing that NGO people are “well-versed” in issues/“are radical”, and by promoting them as speakers, UCD is actually creating a hierarchy of knowledge. And this hierarchy is nothing but a replication of capitalist division of labour in which intellect takes precedence over action/organization building, and the suave, Oxfam funded NGO spokesperson replaces the ‘not so articulate’ trade unionist/ political activist.

There are two more disturbing things to note about UCD’s campaign. One pertains to its search for an alternative accommodation for evicted students, and the other to its “free left” image. In its initial meetings, some UCD members pushed forward the search for an alternative accommodation. The first pamphlet printed by the UCD spoke of the need to build communes in places off campus. In fact, a team met with the management of a Gandhian trust (funded by Ministry of Social Justice) which ran a hostel near Kingsway Camp, called Gandhi Ashram. The place soon began to be promoted via e-mails etc. almost like any other private accommodation; the purpose being to provide a space for those still desperately looking for affordable accommodations and also to provide a space for regrouping when things got rough during the campaign. Ironically, the Gandhi Ashram hostel is meant for poor Dalit school students who were obviously going to be displaced if college students moved into the dormitories. No one seemed to reckon with this inevitability while the plan was still being hatched.

What we also found disturbing about the Gandhi Ashram plan was the desire of creating an isolated “democratic” space. The message being sent out was nothing but we can create our own isolated commune-like space in this big bad world. This approach stems from the sectarian University-centric politics of the UCD highlighted above, and also from a non-revolutionary conceptualization of commune life. For many participants in UCD, the commune with its base in Gandhi Ashram was an apparent ‘pre-figuration’ of a new society, whereas it was far from that. Commune was being envisaged as a centre of ‘counter-culture’—an oasis in capitalist wilderness. Interestingly, this is a very familiar trope—it is based, both at once, on a vision of a transformed society without real hope for a process of transformation. This is because it is based on the vision that the lives of a minority can magically change without transforming the whole. This is, after all, how (phantom) revolution itself, is envisaged according to the pipe-dreams (joint-dreams?) of petty bourgeois students/intellectuals who enjoy the comforts/security of generous remittances from home—‘let us, at least, as a small privileged community enjoy revolution making’.

Of course, as pointed out by us in the meetings, it was nothing but ridiculous that UCD spoke of building a commune in a place which was actually going to be charging the students Rs. 1500 per bed and where 6 to 8 women students would have to live per room. How can a commune work within a market structure, and how can a place which gives you no control on the rules and regulations to be implemented, become a progressive, commune-like accommodation?! Despite these criticisms, UCD went ahead and would have signed a MoU with the Gandhi Ashram management, if it wasn’t for the sheer lack of students interested in the place. In fact, just so as to get students to join the bandwagon, emails were sent out exaggerating the facilities available at Gandhi Ashram. In the interest of pulling a crowd, the green lawns of the Ashram were highlighted. Meanwhile, it was downplayed that no fooding would be available at the place and that this was going to be a dormitory system. Indeed, such concealment amounts to lying.

Lastly, as we would like to point out, it is a shame that the University Community for Democracy prides itself for its “Free Left” image. It is typical for such a forum to claim its steadfast commitment to ‘democratic issues’. However, in reality, their idea of democracy is based on the empty notion of dialogue and communication. Democracy is, unfortunately, abstracted from its link with socio-economic forces which is why it becomes more difficult to build a consistent anti-systemic movement. We see this problematic notion of democracy manifested in the very first pamphlet released by UCD. What was repeatedly highlighted in it, as a problem, was the fact that recent developments in the city as well as at the level of the University were not discussed before implementation.

Ironically, despite all their claims, most UCD participants stand for a façade of democracy and democratic functioning. For example, many emails and curt replies to questions raised in the meetings reflect the emerging dogma that only “pragmatic” things should be discussed in meetings (pragmatic issues being those that will help UCD attract more people). Thereby, it was constantly demanded that the ideological issues be shunned, and in a very undemocratic way, that is precisely what happened in meetings. The question is, what is it that UCD will do with the people who are immediately attracted to its campaign. Aren’t they supposed to work on these people and ideologically bring them closer to progressive politics? What does one read into this persistent impatience with ideological issues? Why do they behave as if the campaign is running against time? One can only presume that they want their whole show to be unfolded before CWG! In that case there is really no long term commitment to the issues being raised, and those that join the UCD campaign are just being perceived as faces/numbers to be posited against the Games, rather than thinking human beings who have the potential to link their immediate concerns with long term politics.

Furthermore, due to its “free left” image, we find that most UCD participants enjoy asserting their “individual” form of participation vis-à-vis an organizational one. As a result, UCD has succeeded in joining a lineage of platform and forum hopping so common to bodies that are dominated by individuals. The simple fact is platforms will be unsteady as long as “radical” individuals refuse to put their “radical-ness” to the test and bring themselves under the discipline and responsibility of organization/party structure. Left fronts and left organizations cannot make individuals their fighting force and leave untouched/un-mobilized the majority of those exploited, i.e. working class. After all, what is the best form of protesting against the Commonwealth Games? Is it not by organizing the large number of workers employed under CWG projects and mobilizing them to stop work at the numerous construction sites? Indeed, this is the most effective way of exposing the Games for what they are, and certain organizations and trade unions have been doing this since the very beginning of CWG construction work.

Having said this, it must begin to seem obvious somewhere to the reader why UCD has raised the issue of workers’ rights more in the spirit of opportunism. What else can be expected when there are group’s dominating UCD, such as New Socialist Initiative (NSI), that have no work amongst workers, i.e. no trade union to speak of, and basically do nothing to promote workers’ self-organization. In their book of strategy workers issues will always be raised so as to appear radical/cool in front of impressionable students than to actually organize workers. Their politics will, in fact, promote workers’ rights and NGOs in the same breath. It is a fact, that NSI has more presence in the NGO network than in the existing workers’ movement. This is because most of their members work for NGOs, and hence, have an objective interest in promoting them. This is why on the day of the protest meeting on 30th July NSI took additional effort to put together a program in Ramjas College, inviting a now well known NGO person. Of course, we didn’t see that kind of effort put in when it came to extending solidarity to the construction workers’ struggle in Miranda House College. The fact is that groups such as NSI have work only in the University and are inactive in any other constituencies of people, especially the working class. At a time when there is an uproar regarding the Commonwealth Games, their attempt to oppose the Commonwealth Games is doomed to be student-centric and University specific. And even when they do raise the issues of the university community it will be done so opportunistically, and the issues raised will be those that cater to a select section of the university community.

Friends, ask yourself—would you rather stand by opportunistic and sectarian politics that takes for granted the issues/concerns of the majority, or would you rather stand by the combined struggle of workers and students? Friends, it is high time we recognize that NGO-ised, petty-bourgeois dominated campaigns are more enemies than friends in the struggle for emancipation. It is time to stop doing the fashionable and to be seen doing the productive. It is time to play the role of the harsh critic and to organize a formidable combined struggle against the oppression and exploitation prevalent in our society.

JOIN THE STRUGGLE TO KEEP THE SPIRIT OF EQUALITY AND JUSTICE ALIVE! LONG LIVE REVOLUTION !!

Filed Under: DIARIES Tagged With: Delhi, Education, India, Labour, Students, Working Class

No Room of One’s Own: The Housing Question in Delhi

August 19, 2010 by Radical Notes 1 Comment

CAMPAIGN FOR RENT REGULATION & MORE HOSTELS
A Joint Campaign of Centre For Struggling Women (CSW) and Krantikari Yuva Sangathan (KYS)

Over many years Delhi has become a city of migrants. Students in search of a decent education and unemployed people in the desperate search for work have poured into the city in large numbers. The Government conveniently attributes the city’s growing crime rate, stress on resources, its ‘landscape degradation’, etc. to this movement of people. It adamantly refuses to acknowledge the fact that the condition city-dwellers find themselves in today is actually the creation of its own anti-people policies and the protection it provides to the landlord/rentier class in the city. To elaborate, the Government’s account of the challenges before the city clearly conceals the fact that the major crisis for city-dwellers, i.e. lack of housing and the need to pay high rents, is the result of landlords owning properties in excess and overcharging those who cannot afford their own housing. Precious little is done by the Government to check the excesses of these property owners in the city. Initiatives to collect property taxes are taken back almost as soon as they are launched and, pro-tenant clauses in the Delhi Rent Act are openly flouted.

The state’s collusion with landlords and the builder mafia is apparent in many ways. This is best reflected in a policy approach supportive of slum demolition, the lack of rent regulation, selling of government land at throw away prices to builders, little or no investment in the building of students’ hostels, highly priced government housing schemes (such as those introduced by the Delhi Development Authority), and in fact, the sheer lack of sufficient housing projects being launched by the government. Due to this undeniable nexus between the interests of the state and that of landlords, it is students and workers who suffer. Migrant labourers who come to the city are forced to live in sub-human conditions in slums or, to crowd into small rented rooms, paying most of their earnings as rents. Students coming from afar are also compelled to live on rent since most colleges in the city provide little or no hostel facilities. They too cut rent costs by sharing small rooms with each other—an atmosphere hardly conducive for study. In other words, the majority of students’ and workers’ monetary subsistence (money received from home and wages, respectively) is appropriated by landlords in the city.

It is important to note that the number of workers and students living on rent is no small number and that, it in fact, constitutes the majority of city dwellers. The magnitude of exploitation in this regard is hence, far from insignificant, and is extremely disturbing. Is this really what a city should be like—a place where most are either homeless or, are slum dwellers living in the constant fear of being ‘relocated’ (displaced), or are those forced to reside in private lodgings for high rents? It is time we locate the root cause behind the pathetic living conditions of students and workers in the city. This piece aims at providing a perspective that shows how things are connected and work to exclude the majority of people from resources and opportunities, and the right to a good healthy life. It is being circulated in the context of our launching a city-wide campaign for rent regulation and the provision of more hostel facility for students who come to study in the city. This Campaign, in fact, is part of ongoing struggles that CSW and KYS have been organizing in the past. These struggles have focused on the concerns of tenants, and basically, the most oppressed section of people working and living in the city. As a youth organization Krantikari Yuva Sangathan (KYS) has extensive work in working class colonies across Delhi. It has collectivized women and youth of these working class areas on issues such as lack of water and electricity supply, the poor condition of government schools in these neighbourhoods, and the apathy of the local administration/police with respect to heinous crimes committed in such colonies. Similarly, Centre For Struggling Women (CSW) has been in the forefront in organizing militant struggles in the University of Delhi for basic infrastructure like hostels. Due to struggles launched by CSW in the recent past, prestigious colleges like St. Stephen’s have had to provide hostel facility to their women students. It is to be noted here that colleges like St. Stephen’s provided the hostel facility only to men students—something which encouraged many women students to give up taking admission in the college. Of course, with the extension of this facility to women students, the age-old chauvinistic culture that prevailed in the college was put to the challenge—in 2005 CSW’s member, Maya John, became the first woman President of the college. The current Campaign For Rent Regulation & More Hostels derives inspiration from CSW’s struggle to provide hostel for all and their earlier Campaign For More Girls’ Hostels, Safe Neighbourhoods And A Safe City.

We hope that what is argued below convinces all who read it, of the need for collective struggle. Indeed, it is only through collective struggle that we can actually expose and challenge the system in place.

WHY PEOPLE MIGRATE TO DELHI:

Why Students: The reason why students migrate to Delhi in large numbers is that there is an acute shortage of government funded universities in India. Those that exist are in a poor condition and fail to accommodate the ever growing number of students aspiring for higher education. The reason behind this shortage of government universities and the poor condition of those that do exist is the paucity of government funding. Investment in education is less than 3% of the GDP! Furthermore, educational policies of the Indian state have been geared towards commercialization and privatization of education. Successive central and state governments have, for example, unhesitatingly recognized private colleges/universities. As a result, private educational institutions have spread everywhere, outnumbering affordable government-run colleges/universities. By strengthening the presence of private colleges/universities vis-à-vis government ones, governments have made education so costly that it has become inaccessible to the majority of Indian people. As a result students flock to the handful of government colleges/universities located in cities like Delhi.

The poor investment in education by successive governments has also led to the deterioration of regional universities, and hence, encouraged the creation of centres of excellence like Delhi University, Jamia Milia Islamia and Jawaharlal Nehru University. It is only with balanced and inclusive development of different regions, that students will have well-established regional universities to study in. For this, of course, our governments need to spend more on education and the social sector as a whole.

A large number of educated youth also flock to Delhi in the hope of securing government jobs. The city is now “home” to many who crowd into small rooms just so that they can receive “coaching” for various competitive examinations. However, most of these youths are forced to go back empty handed after 5 to 6 years of such preparation, simply because there just aren’t enough government jobs to be had.

Why Workers: Unbalanced and non-inclusive development of different regions in the country has also affected employment opportunities of people drastically. In regions across India (Orissa, Jharkhand, Chattisgarh, Bihar, Bengal, Maharashtra, etc.) the Indian state rules in the interests of Indian and multinational companies that seek to plunder natural resources and to raise a cheap supply of labour from the ranks of displaced tribals, agrarian labourers and poor peasants. Government after government, in its collusion with private business interests has snatched agricultural land, forests and other resources from poor peasants and tribals. Half hearted attempts at land reform and the withdrawal of various agrarian subsidies have brought ruin upon poor peasants, pushing them to commit suicide or to join the ever increasing rank of agrarian labourers. Even in “well developed and rich” states like Gujarat, Delhi and Punjab, exploitation is rampant and, industrialization and corporate farming (the usual indices used to calculate such states’ development record) are based on the ruination of the most vulnerable sections of rural society.

On being denied their lands, rivers and forests, those displaced are compelled to turn to cities like Delhi where employment at construction sites, factories and sweatshops, restaurants/bars, etc. can be found. Needless to say, the wages earned are abominably low and are a cause of much distress.

HOW THE MAJORITY OF TENANTS LIVE IN THE CITY:

With their limited monetary resources, both students and workers compromise with their health and well being when taking up lodgings in Delhi. So as to pay the escalating rents students crowd into small rooms just so that they can share the rent with others. This uncomfortable living is complemented by poor fooding since most students try and survive the day on one or two meals alone. In such living conditions students find it difficult to concentrate and study properly—something which impacts their class performance greatly. One has only to visit places like Nehru Vihar, Gandhi Vihar, Christian Colony, Sangam Park, Gurmandi, Munirka, etc. to come face to face with students living like this. Of course, there are some students who take better places on rent but there too students face problems such as harassment by landlords/neighbours. Rents are arbitrarily increased and landlords get students to vacate suddenly on the pretext of something or the other.

For women students such private accommodations are even more precarious since landlords and male neighbours feel free to sexually harass them. This is why almost every woman student staying on rent has a horror story to narrate and feels vulnerable in such places. Some students, like those from the Northeast, are deliberately charged higher rents by landlords and, women northeast students are made victims of the worst incidents of sexual harassment. A very large number of students and youth in search of work come from places like the northeast. This migration clearly indicates the sheer lack of investment by the Indian state in these regions. Due to lopsided development in states like the Northeast, students are compelled to come to metropolitan cities like Delhi to study. Similarly, the paucity of jobs in these regions compels many to migrate in search of employment. For example, a large number of nurses who work in hospitals across Delhi come from the northeast states. Once here they earn a limited amount as salaries, most of which then goes to pay off rents.

The fact that a large number of students are compelled to live in off-campus housing is not only because a large number of them come to Delhi to study, but also because most colleges of Delhi University (D.U.) do not provide hostel facility. Shockingly, out of D.U.’s 76 colleges, only 11 provide hostels for outstation students! Considering this, most students who come to study in institutions like this can be found living in private accommodations. Affordable and comfortable hostel facility rather than being a fundamental right has become a privilege for which only a select few are eligible. It is worse for women students since they are denied hostel facility in many co-educational colleges which only provide this essential facility to their men students.

Just like students, workers who migrate to the city desperately search for affordable housing. Most end up living in slums where basic amenities like water and electricity are scarce. Safety and hygiene are a distant dream in such settlements since most of them have come up along the slopes of open drains and empty land beside the Municipality’s garbage dump-sites. These slums are either being pulled down by builders who want cheap land for their real estate business or, are burnt to ashes since fire fighting authorities take their own sweet time in reaching places where the poor reside.

Many workers also live in cramped accommodations in colonies near industrial belts of the city. Earning only between Rs. 2500 and Rs. 5000, they are forced to part with a large amount of their meager earnings as rent. What they pay for is a small room in which they and their five to six member family, resides. Needless to say, in these cramped conditions, discomfort breeds, tempers fly and unhappiness grows. Here too as tenants, workers and their families are devoid of basic facilities like water and electricity. It is a fact that in many such colonies, people are forced to queue up for water and the electricity supply is cut for nothing less than 6 to 10 hours a day. Undeniably, private power distributors in Delhi practice very selective load shedding, often choosing working class colonies over other posher areas. In working class colonies like Baljit Nagar where KYS has been extensively working, water reaches many houses every third day! In this regard KYS has spearheaded a militant struggle against the Delhi Jal Board Authorities as well as the water (tanker) mafia that operates in the locality. Similarly, in the same locality women’s lives were reduced to hell when rumour of a serial killer, i.e. Hammer-man, made its way into the public domain. Realizing the discontent and fear prevalent in the youth and women in the locality KYS carried out an investigative inquiry, following which it organized a huge protest outside the Delhi Police Headquarters. Through its inquiry the organization proved that rather than a serial killer on the loose, who attacked women and miraculously escaped the notice of other family members crowded into the small rooms/houses in Baljit Nagar, the assaults (and in two cases, murder) were actually incidents of domestic violence. As a result of the pressure applied on the Delhi Police, arrests of guilty family members began to be made shortly after.

Apart from high rents, workers and students’ problems are compounded by the poor condition in which the public transport system exists. With the acute shortage of Delhi Transport buses most of the time commuters are travelling in crowded buses, endlessly waiting for buses at stands/depots, etc. As a result, the travel to and fro from their workplaces/institutions to their homes is nothing short of a nightmare.

RECENT DEVELOPMENTS THAT HAVE MADE IT WORSE FOR TENANTS:

Recently, over the past two years as Delhi’s authorities have hurriedly prepared for the Commonwealth Games, conditions for tenants in the city have worsened. The preparation for the Games has, indeed, allowed the state to crack down on the most vulnerable sections of society. Construction workers, most of whom are migrants, are being overworked and underpaid at the various Commonwealth sites. The homeless, labourers, hawkers, and now students have had to pay the brunt for the massive construction work and subsequent redirecting of funds. Slums have been demolished and ‘relocated’ overnight, street vendors have been denied their rights, and now students too have been recently evicted from their college hostels in the wake of the Commonwealth Games!

The face of the Commonwealth Games is really less about the games, and more about the herding of poor people into ill-equipped resettlement colonies (in the hope of concealing the city’s poverty), cracking down on rickshaw-pullers and street vendors, evicting students from college hostels, and the brutal exploitation of cheap labour for the massive construction projects. It is time for introspection—when this country has little to boast of in terms of a mass sports culture, why should we sacrifice and celebrate these Games?! It is a fact that the same Indian state that is pouring funds into the Commonwealth Games’ fund, does little for its sporting community. So far governments have done little to build new stadiums and have invested precious little in the upkeep of existing sports infrastructure. New stadiums are built, old ones are renovated and Indian sportsmen are provided world class training only around certain “spectacular” events like the Asian Games some years ago and now on the occasion of the Commonwealth Games. In other words, a consistent and dedicated investment in sports is missing.

It is also a fact that till today sporting facilities are missing from the majority of government-run schools, killing the potential of so many young people to learn and specialize in sports. We find no sports centres in most colonies built by the government, especially JJ (Jhuggi-Jhopdi) colonies. The result of this is that only a select few (those who happen to study in good private schools or, live in posh localities that run sports clubs), indulge in sports. The majority of Indian youth learn to play in dry drains and the narrow streets of working class colonies. They cannot even dream of being professional sportsmen.

Of course, under the garb of the Commonwealth Games, landlords have hiked rents considerably. They had done so earlier too, when the Delhi Metro reached certain areas of the city. As expected, nothing was done then and nothing is being done now to control the fleecing of tenants. In its hurry to meet the deadlines of the Commonwealth Games, both the central and Delhi government have turned a blind eye to the growing problems of tenants. In fact, they have added massively themselves to the problems of workers and students by, consistently increasing the prices of essential commodities (pulses, vegetables, milk, petrol, diesel, electricity and even water) and taxes like V.A.T. By conveniently quoting the rising prices of water and electricity, landlords in the city have further dug into the pockets of workers and students living as tenants. They have also come up with disgusting practices like compelling their tenants to buy provisions from provision stores run by them in the locality!

On average rents have gone up two to three times this past few months. For students paying a rent of Rs. 3000, are now being charged an extra two to three thousand rupees. If they resist they are asked to vacate the accommodation. Realizing that students from colleges affiliated to D.U. have vacated their hostels temporarily, landlords have hiked rents, knowing there will be plenty of takers for their lodgings. Needless to say, these events are going to have long term repercussions for students even when the Commonwealth Games are over. The escalated rents are here to stay, as no PG is going to come down from a hiked rent of say Rs.8000 to Rs.5000, post the Games.

OUR APPEAL:

Since the problem of high rents, eviction, displacement etc. is a general one and affects not just one group of people in the city, it is important to address not a particular set of persons but the majority of city dwellers. Issues and demands should be raised in a way that they appeal to a larger section of people affected by the state’s inaction and its collusion with private business interests. In this way we connect concerns, struggles and militancy of different sections of people who are often segregated from each other due to the functioning of the system in place. For example, the student community and workers find themselves separated by work schedules, their class backgrounds, spatial settings/norms (in terms of workers being restricted to the space of factories and students to the space of their classrooms), etc. Of course, groups that can and should unite also find themselves segregated by wrong kinds of politics. By following initiatives that seek to particularize and defer the need to generalize issues of struggle, people come to raise struggles in isolation. Their militant campaigns lose steam, credibility and relevance since they did not tap on certain organic links between their concerns and those of other affected sections in society.

Hence, rather than particularizing the struggle against recent developments in the city, we must link up with connected concerns so as to expose how the “particular” (be it in terms of experiences, mobilization, etc.) is a false or exaggerated projection of the reality. The demand for rent regulation and affordable subsidized housing for all is a call that addresses all those living as tenants in the city. It is a potent cementing force in this regard. Of course, apart from raising common general demands, we must actively and consistently reach out to all those who are affected. Our action plans should include concrete mass mobilization of the different affected parties rather than mere information-gathering exercises, occasional meetings with them, etc. The latter is more patronizing in its approach to groups being reached out to. It cannot be our strategy to connect with the larger audience of people affected. Hence, the Campaign for Rent Regulation and More Hostels is working towards raising common concerns actively amongst different sections of people living as tenants in the city. We seek to encourage the student community in universities like D.U., not to raise the issue of rent, eviction, etc. within the limited sphere of the university alone, but also to become active participants in ongoing struggles raised by others faced with the same problem. We also aim at encouraging the student community to connect problems they face with larger questions of poor resource allocation, denial of opportunities by the system, etc. This is why we believe that demands such as provision of more hostels for students, housing for all, the removal of draconian economic policies like privatization of education and Special Economic Zones Act (2005), etc. are crucial for the Campaign. By raising these issues students are fighting the actual source of their exploitation and are strengthening the working class movement. Indeed, by supporting long standing demands/concerns arising from the working class movement, initiatives taken by students no longer remain sectarian (particularistic) in nature.

Friends, it is time we object and fight against people’s labour becoming someone else’s profit. By raising the issue of escalating rents we should realize that we are tapping on widespread social discontent. As tenants in the city, we, workers and students, cannot continue to watch our hard earned wages and limited monetary resources, line the pockets of greedy landlords in the city. It is time for collective struggle against landlords. We must realize that no longer can our individual battles with landlords bring us relief. We must step forward to give our individual struggles a collective form. It is only through collective struggle that we can pressurize the local government to administer its duties and regulate rents in the city as well as provide subsidized housing.

THE WAY AHEAD:

Indeed, our struggle against the rentier economy must not limit itself (in terms of ideas, visions and action) to certain immediate goals that are set. Our collective struggle must see this popular discontent and despair as stemming from the inequalities that capitalism breeds. Our fight is, hence, against a system that allows private business interests to control the economy and social life. The Campaign For Rent Regulation and More Hostels is just one of the forms our struggle against the system shall take. Through this particular struggle we must realize the significance and need for other larger struggles.

Of course, to fight a system we need a road map, and it is here we believe that the movement for socialism, both in the past and the present, will be our best guide and source of inspiration. This collective struggle by students and workers can draw much inspiration from socialist societies that built cities where homes were provided to all and where living spaces were redesigned so as to emancipate womankind from the burden of domestic chores (responsibilities that were earlier considered solely those of women). Socialist societies, despite several failures, have constantly endeavoured to provide the majority a home to live in and have developed community life in ways never imagined. In countries such as Cuba, the now dissolved USSR, etc. properties held in excess were confiscated and distributed to those who had lived as tenants for years as well as those who were homeless. Furthermore, socialist states invested heavily in construction of housing complexes, community/sporting/recreational centres, schools, colleges, hospitals, and entire cities—the driving force being the desire to accommodate the needs of all, as well as the desire to provide the majority the best of opportunities. It was in these very housing complexes built in socialist societies that individual kitchens (where women slaved away at back-breaking housework), were removed and community dining halls were created for each such housing complex. For certain segments of the society, such as students, endeavours were made to inculcate commune living and lifestyle.

We cannot create these progressive changes in our immediate social world but we can aspire for them and pave the way for their development and acceptance. For this we must begin to desire holistic and systemic change. We must realize that the actual resolution of the housing question lies within the struggle for and creation of a new socio-economic structure. In this light the Campaign For Rent Regulation and More Hostels is one step in that direction.

We Demand
• Rent Regulation by Delhi’s Rent Controller
• Provision of Hostel facility for students in every Delhi University college
• Funds allocated for renovation of existing hostels, be used for building larger capacity hostels.
• Construction of more working women’s hostels
• Provision of subsidized housing for all
• Institution of a judicial commission to inquire into the condition of tenants in Delhi
• Provision of more affordable public transport (U-specials, L-Specials, etc.)
• Public audit of the Commonwealth Games’ accounts

We Condemn
• Slum demolitions
• Hike in rents by landlords across the Delhi
• Eviction of current hostellers from college hostels
• Promotion of private accommodations
• The plunder of collective resources by private business houses.
• The anti-people policies of the Indian state

Filed Under: DIARIES Tagged With: Delhi, India, Labour, Press Release, Students, Working Class

Labour laws violated in Miranda House College Commonwealth Games construction site

August 19, 2010 by Radical Notes 1 Comment

Alok Kumar, Secretary
Delhi Nirman Mazdoor Sangharsh Samiti

Since the beginning of August, the Delhi Nirman Mazdoor Sangharsh Samiti has been mobilizing workers employed in Miranda House College against their exploitation. The trade union has been mobilizing workers since the commencement of construction work at the various Commonwealth Games work sites. It is, in fact, the only trade union of construction workers in the city. Despite the difficulties in mobilizing an unorganized work force like construction workers, the union has constantly made successful interventions. The struggle of workers at Miranda House marked its fifth successful intervention in Commonwealth Games construction sites. The details of the Miranda House struggle follow.

On August 6, 2010 the workers sat on a dharna outside the college, following which they took out a rally around the University campus. The latter was aimed at reaching out to construction workers employed at other work sites in Delhi University. On not receiving a response from the Miranda House authorities on their demands, the workers decided to sit on dharna outside the college office on August 12. They were supported in their struggle by the college students and members of the Miranda House Staff Association such as the Secretary, Ms. Nandini Dutta. The struggle was also supported by women and youth organizations like Centre For Struggling Women (CSW) and Krantikari Yuva Sangathan (KYS).

The workers and students/teachers, under the banner of the Delhi Nirman Mazdoor Sangharsh Samiti, were protesting the non-payment of wages due to the workers. They were also protesting several other violations of labour laws such as those pertaining to payment for overtime, mandatory weekly rest, etc. The workers at Miranda House had not been paid for the entire one month and four days for which they worked at the college. Furthermore, the rate of payment fixed by the contractor, Ms. Payal was well below the legal minimum wage rate. Unfortunately, despite the fact that the contractor defaulted in paying the workers and continuously violated several labour laws, the principal employer, i.e. the college Principal, Ms. Pratibha Jolly refused to step in and release the workers’ arrears. She, in fact, tried to act as a negotiator between the contractor and the union, something which the union vehemently opposed. Under the pressure applied by the union, on August 4, a small part of the workers’ dues was released with no further surety provided by the college administration to look into the other key demands of the workers. The protest held by workers on August 6, fell on deaf years.

Finally, after waiting till August 12, for a formal response from the Principal, the workers and the union decided to sit in protest, once again, against this high-handed and insensitive behavior on the part of the principal employer. As a backlash the college administration called in the Delhi Police who immediately started intimidating and manhandling the workers and students sitting on protest. Meanwhile, inside the college committee room, the Principal, the contractor, etc. refused to negotiate a written agreement. After much deliberation it was agreed to get the accounts together, for which the union sat down. Exact calculations of the payments due to the workers, and that too at Delhi’s daily minimum wage rate, were made and submitted for negotiation by the Delhi Nirman Mazdoor Sangharsh Samiti.

While the negotiation proceeded, students and workers addressed Miranda House students who had congregated. In the discussion that took place it was pointed out by the Union as well as others present that it was shameful the way Miranda House hostellers were evicted from the hostel last moment (i.e. just two weeks before college reopened), followed then by this blatant and heartless exploitation of labourers employed at the hostel renovation site. The assembly of students and workers present was also formally addressed by Sri Narendarji, executive member of Indian Council of Trade Unions (ICTU) and the Secretary of Delhi Nirman Mazdoor Sangharsh Samiti. Alok Kumar, Secretary of the Delhi Nirman Mazdoor Sangharsh Samiti, in his address, congratulated the workers for their endeavours and stated that the union’s initiative would now be to bring together workers from all the different work sites in the area. He spoke of intensifying the struggle and speculated that if the workers demands were not met by Miranda House Principal and the contractor, then the workers would not hesitate in striking work in the college.

It is clear from this instance that workers are willing to mobilize and use the strength of their organizations to fight back against their brutal exploitation. As members of the construction workers’ organization, we seek support of other democratic and progressive sections in this fight for justice.

Addendum

LIST OF LABOUR LAWS VIOLATED BY CHIEF EMPLOYER i.e., PRINCIPAL OF MIRANDA HOUSE & THE CONTRACTOR, Ms PAYAL

Principal of Miranda House, Ms. Pratibha Jolly, is the principal employer and she is the one who is the key violator of set labour law norms.

• According to section 21 (2) of The Contract Labour (Regulation and Abolition) Act, 1970, every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of the representative to certify the amounts paid as wages. In section 21 (3) it is further emphasized that it is the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer. As delineated in Section 21 (4), in case the contractor fails to make the payment of wages within the prescribed period or make short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due. [See Cominco Benani Zinc ltd. v. Pappachan, 1989 LLR 123 (Kerela).

• The Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996. Section 45 specifies that if the contractor fails to make payment of wages then the employer/principal employer is liable to make all the payments. Also see The Payment of Wages Act, 1936, section 3 (2).

• Section 30 of the Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 prescribes proper norms for maintenance of registers and records. For liability of principal employer in this regard also see Minimum Wages Act, 1948, section 18 (1) and section 21 (1), (2) of The Contract Labour (Regulation and Abolition) Act, 1970

Other Norms violated by both principal employer and contractor:

• Section 28 (1) (b) of The Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 prescribes a day of rest in every period of 7 days with payment for the day of rest.

• Section 28 (1) (c) this Act of states that if work is carried on the day of rest, a worker is to be given the overtime rate specified in section 29.

• Section 29 (1) prescribes that any work above the normal work day should be given twice the ordinary rate of wages.

• The Minimum Wages Act, 1948, Section 17 prescribes that when an employee is employed on piece rate, the amount of wages paid cannot be less than that paid for minimum time rate. Also see Section 3 (2) (d).

• Section 25 prescribes that when a contract or agreement is being made between employer and employee whereby the employee relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this act, then such a contract/agreement shall be null and void, and employees have to be paid according to the legally prescribed minimum wage.

• Section 12 (2), Comments (ii) states clearly that where a person provides labour or service to another for remuneration which is less than the minimum wages, such labour is “forced labour” within the meaning of article 23 of the Constitution and thereby entitles the person to invoke article 32 or article 226 of the Constitution of India.

• Moreover, there was a violation of many other norms mentioned in Building and other Construction Workers Act. There are no provisions made for facilities like crèches, canteen, latrines/urinals, accommodation, drinking water, etc. Prescribed safety and health measures are also being violated.

• The Contract Labour (Regulation and Abolition) Act, 1970 in Section 29 (2) prescribes that every principal employer and every contractor has to exhibit notices of particulars like the hours of work, wages, nature of duty, etc.

• According to The Equal Remuneration Act, 1976, women workers are liable to be paid equal wages.

• Supreme Court Guidelines (in Vishaka Judgement 1996) prescribe the constitution of anti-sexual harassment complaints committees in every workplace. The construction site in Miranda does not have such a committee in place for the women workers employed.

Filed Under: DIARIES Tagged With: Delhi, India, Labour, Working Class

Support to Mamata Banerjee’s 9th Aug Rally: A Capitulation to the Rightist Forces

August 15, 2010 by Radical Notes Leave a Comment

Amitava Bhattacharya
General Secretary
Mazdoor Kranti Parishad

Following the Singur-Nandigram movement, the most important movement in West Bengal is that of Jangalmahal including Lalgarh, where an unprecedented mass upsurge rocked the entire nation. The terrible mass-agitation of the tribal population against the police repression unfolded the history of the prolonged deprivation of these people. Not only the state of West Bengal, but the whole of the country solidly stood by this movement.

The most important feature of this movement was that it surged forward on its own, defying any interference by the established parliamentary parties. This movement was born as a continuity of the people’s protest against the SEZ project of the Jindals at Shalbani, a project nurtured by the support of CPI (M), Congress and Trinamool Congress. When the Left Front government led by CPI (M) came to power for the seventh consecutive term, it became all the more rabid to make West Bengal a hunting ground for the native and foreign big capital. It started the forcible land acquisition. To achieve this aim, notorious gangs of hoodlums were formed by CPI(M) everywhere. All this started happening during the rule of UPA-1 and the Congress shamelessly abetted these activities.

The other party of the ruling class, the Trinamool Congress fully utilized Singur-Nandigram movement for the purpose of its political upheaval. This party was absolutely in favour of the ‘SEZ Act, 2005’ while it was a partner of BJP led NDA alliance. During the rule of the UPA-2 also this party played the most ‘suitable’ role as the partner of the congress government. This party never opposed the nefarious “Operation Greenhunt”, nor did it play a proper role against unprecedented price rise that has been making the life of the common people unbearable. Opposing the forcible land acquisition in Singur for TATAs, Mamata Banerjee took the centre stage anew in 2006. She fully made use of this movement to promote her parliamentary gains only to betray it later on. She used the spontaneous movement of Nandigram in the same manner. With the help of the Congress, Ms Banerjee and her party TMC once again tasted the ministerial power during the rule of UPA-2.Now the aim is to capture power in West Bengal in 2011, when the State Assembly election will be due.

Against the unscrupulous scramble for power of the parliamentary political parties safeguarding the interest of the big capital, both Indian and foreign, the struggle of the Jangalmahal has instilled new life into the revolutionary movement. The revolutionary prospects of the left once again became an object of serious discussion. The CPI(Maoist),the main political force behind the movement on the other hand, took initiative to convert this mass upheaval into armed war against The State, which is, in fact, their declared political position. In course of time various guerrilla actions, small or big, became the principal form of this movement. By sending the joint forces on 18th june,2009, both Central and State government tried to suppress this people’s movement. The armed hoodlums of CPI(M) also joined hands in this campaign of torture and mayhem on the oppressed people.

The largest partner of UPA 2 government Trinamool Congress demanded that the entire area be declared a “disturbed area” and the Indian Army be deployed, in the pretext of the presence of the CPI(M) hoodlums. And now while taking the full protection of the Joint Forces to organize her meeting, she very hypocritically demands their withdrawal.

This movement has incurred heavy losses by the pincer attack of The Joint Forces and the CPI(M)’s own armed gangs. The CPI(Maoist) has been regularly carrying annihilation of persons suspected to be police spies. Under the circumstances, Ms Mamata Banerjee on 21st July has given the call “Lalgarh chalo”. At the outset it was decided that meeting of Lalgarh would be held in the name of TMC alone. Later on she declared that the meeting would be held in the name of “Santrasbirodhi Manch” (Anti Terror Platform).She invited The Congress Party to this congregation. She invited the intellectuals also who desire a “change” of power. A section of them declared their wish to join the meeting. To add to the significance of this meeting, the PCPA, opposing it at the outset, later on decided to join it. This organization subsequently went whole hog to make this meeting a success. To cap it all ,The top-ranking Maoist leader Kishenji gave statement to make “Didi’s rally” a success.

It is known to us that at times a movement has to temporarily retreat. But for a movement which is declared to be a decisive battle against the state, a movement which is considered a high level movement for the transformation of the society by its leaders, is it not a dangerous “tactics” for it? We do not think it proper for the highest leadership of The Maoist Party to support a section of the ruling parties of the state, against which the war has been already declared.

We think the role that the sham leftist CPI(M) has been playing as the representative of the ruling and exploiting classes is leading the countless toiling people to the loss of faith in the red flag. They are being compelled to have recourse to the rightist force. Such a juncture in our contemporary history is really very agonizing. At such a critical hour, to plunge into the lap of the rightist forces for a momentary gain is not only a mistake, but extremely harmful so far as the building of a revolutionary alternative is concerned. Taking historical lessons from the mass movements of Singur, Nandigram and Lalgarh , let us resurrect the revolutionary tradition of the left movement and forge ahead towards greater people’s movement.

Filed Under: DIARIES Tagged With: India, Press Release, West Bengal, Working Class

Protest Against Operation Green Hunt in New York, August 13 2010

August 6, 2010 by Radical Notes 1 Comment

Protest Against the Indian Government’s “Operation Green Hunt”

Where: At the Consulate in New York City (3 East 64th Street)

When: On August 13 at 11 a.m.

Contact: communications [at] sanhati [dot] com

NEW YORK CITY – Sanhati, and other organizations and individuals, are organizing a protest against the Indian government’s insidious war, named “Operation Green Hunt,” which has been unleashed on the inhabitants of the forested regions of East-Central India. The protest will approximately coincide with Indian Independence Day (August 15) to emphasize that the promises of independence have remain largely unfulfilled for a large section of the population, including the tribal peoples.

In its current phase, this war is concentrated primarily in the forested regions of East-Central India, stretching from the states of Chhattisgarh to Jharkhand and West Bengal. This region is home to significant amounts of natural resources.

Big corporations, both Indian and foreign, are plundering these natural resources for quick profits and plan to continue doing so while paying almost no attention to the enormous environmental and human costs inherent in their ventures. The state and central governments continue to welcome these big corporations with open arms by signing an unknown number of memoranda of understanding with them—whose details have been kept secret. A recent report by the Ministry of Rural Development, on the other hand, described these trends as one of the biggest land grabs since the time of Columbus.

Yet these forested areas house not only natural resources. This region is home to a large section of India’s roughly 100 million Adivasis (i.e., the tribal population). Using all means at their disposal, the Adivasis resisted the government’s efforts to forcibly drive them from their ancestral lands. Drawing on the Fifth Schedule of the Indian Constitution, which is devoted to Adivasi rights and provisions for their protection, Adivasi activists challenged the government’s expropriations.

Instead of addressing the genuine grievances of the Adivasis, the Indian government has cracked down on their legitimate protests in violation of the letter and intent of the Indian Constitution. Peaceful resistance movements across this region have been met with police brutality and military might; this forced the arming of a section of the resistance movement. State-assisted vigilante groups like the Salwa Judum in Chhattisgarh and Harmad Bahini in West Bengal were a response of the state to the armed resistance of the Adivasis.

When that failed, Operation Green Hunt—a further escalation and militarization of the State’s response—emerged. Such militarization is facilitated by the Indian government’s military cooperation with the United States and Israel.

Sections of civil society have been urging the central government to stop Operation Green Hunt and begin negotiations with the diverse people’s organizations opposing the looting of natural resources. The response of the government to the idea of dialogue has in general not been encouraging in view of the plans of increased militarization, human rights abuses committed by the security forces, suppression of dissenting voices, and abductions and killings of the leaders of people’s organizations.

In this context, Adivasis in India, and all the people who are with them in this struggle for freedom from exploitation and oppression, need your support. Join us to protest against Operation Green Hunt and the increasing violence of the Indian State on democratic movements on August 13, 2010 at 11 a.m. in front of the Indian Consulate in New York City.

Oppose the biggest land grab since Columbus!

Oppose Operation Green Hunt!

Oppose the war on people!

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Sanhati (www.sanhati.com) is a forum of activists, professionals, workers, academics and intellectuals that stand in solidarity with peoples’ struggles against corporate capital and for the upholding of democratic rights in India. The group strives to be an integral part of the international search for alternatives to the capitalist social order.

Contact: communications [at] sanhati [dot] com

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Background Note

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India Shining, so claimed the BJP-led government. Today, the Congress-led regime might boast that it successfully increased annual economic growth from 5.6% to 8.3% in the last six years, while criticizing the previous BJP-led alliance.

Between the 5.6% and 8.3%, there lurk other stories. About three-quarters of India’s people live on less than Rs. 20 per day, while almost half of the women in India are still illiterate and about 80% of households do not have access to safe drinking water.

Between 1997 and 2006, there lurk other stories. Nearly 170,000 farmers committed suicide by drinking pesticide because they could not keep up with demands to repay their loans. In addition to the agrarian crisis, whatever little access the poor had to common property resources has come under increasing attack by the Indian government in the guise of Special Economic Zones (SEZs) and other “development” projects related to mining, industrial development, information technology parks, and so forth.

Immeasurable stories such as these are grafted onto the underbelly of neo-liberal economic “development” in India. A recent report, penned by the Indian Ministry of Rural Development, described these trends as the biggest land grab since Columbus. In truth, it wouldn’t be hard to keep citing official statistics revealing not only the shadows within the Shining India myth, but huge pockets of darkness. To be perfectly honest, none of this is new. If there is one image of India that has persisted in the Western media, it is the image of bone-thin, bare-bodied children with swollen bellies, scavenging for food-crumbs in trash-cans next to stray dogs and wild birds.

But something has changed in the last five years.

India, like many other parts of the world, has seen the emergence of a whole spectrum of mass movements challenging the global neo-liberal onslaught in many different ways. These movements are not attempts to “brainwash” the masses by English-spouting city-bred students or intellectuals with romantic dreams of social change. On the contrary, these movements are being led by the very people who have been persistently excluded from reaping the benefits of development and growth – in short, the people who live in the pockets of darkness within the so-called shining India.

The proverbial aam aadmi has spoken. The oppressed of India have shown an unwillingness to stay oppressed for eternity, despite the policy of the government to “kill the poor and not the poverty.” These struggles are primarily about defending their lands, rivers and homes from corrupt officials and swindlers. Moreover, these movements have demonstrated that not only has the government failed to deliver on the promises of the basic rights of the Indian constitution itself, the interests of the most economically disadvantageous people have seriously been compromised by its almost total and unconditional submission to the interests of corporations like Mittal, Vedanta, Tata, Essar, Salim, Jindal, and POSCO.

Instead of improving governance while addressing dissent and discontent in an inclusive way, as be-fitting any democratic government, the Indian government has unleashed severe state violence. The government of India has launched an insidious war nicknamed Operation Green Hunt. While the terror initiated by the government since 2009 is by no means unique in view of the history of the state repression across India (e.g., West Bengal, Orissa, Kashmir, the Northeasten states, Punjab, and Andhra Pradesh), Operation Green Hunt is unprecedented both for its array of military force and its media mobilization.

Since last year, more than 100,000 military and paramilitary troops have been sent into Adivasi (i.e., indigenous) areas. Moreover, it was recently announced that 36 battalions of Indian Reserve Forces will be added to the 105 already raised, along with 16,000 more “Special Police Officers” (civilians trained and armed by the government) bringing their total strength to 30,000. Through this new military campaign, which almost brings to mind histories of colonial occupation of land, the military “occupiers” are to gradually spread into one “sanitized” area after another.

Some additional relevant facts:

Twenty Warfare Training Schools are being built in India.
Prime Minister Manmohan Singh recently spent $18 billion in the US to buy huge amounts of military supplies and munitions. This included state-of-the-art global positioning systems and night-vision-capable automatic rifles.
Drones are being purchased from Israel and the Israeli Mossad is training Indian police as snipers. The aim of the training is to enable assassination of the leaders of diverse mass movements. The recent murder of the Communist Party of India (Maoist) spokesperson Azad, who was also the party’s emissary for negotiations on a ceasefire, clearly reflects one aspect of the government’s modus operandi (i.e., targeted killings).
According to numerous reports, dozens of indigenous people are being killed each week in the Adivasi regions.
The Communist Party of India (Maoist) has been declared India’s “gravest internal security” threat and has been banned. Bans have also been imposed on other democratic organizations on the claim that they are frontal” organizations of CPI (Maoist) and the witch hunt against these civil rights activists continues unabated.
The last few months have seen the arrests of increasing numbers of media personnel, journalists, writers, and intellectuals who have shown the slightest sympathy to people’s struggles in the Adivasi heartland. The discussions within the ranks of the police forces in the state of Chattisgarh as to whether the Booker Prize winning writer Arundhati Roy is to be charged under an “anti-terrorism” law following the publication of her essay Walking With the Comrades is a case in point.
The state of Gujarat has joined Operation Green Hunt by alleging that “Maoists” are attempting to expand their networks into Gujarat and in particular the tribal regions of South Gujarat. Several activists have been arrested. This witch-hunt of the Gujarat police amounts to a systematic effort by the state government to suppress all manner of dissension and opposition.
Operation Green Hunt includes widespread incidents of rape committed by the security forces. Recently, about 50,000 women tried to march into Jhargram town in West Bengal to protest against these rapes (see photograph above). The marchers included school students in uniform, teachers, housewives and even many elderly women. Widespread rape is a progeny of Operation Green Hunt.
The Armed Forces Special Powers Act (AFSPA), one of a number of anti-democratic Acts, continues to give Indian troops immunity from civil legal action and promotes human rights violations. The Naga People’s Movement for Human Rights has aptly observed that this Act is a systematic tool of the Indian government that contributes to terrorizing and dehumanizing civilian populations. This Act also protects security personnel in Kashmir guilty of killing and torturing the people of the valley.

The Indian state, in other words, has declared war on its own people. It has declared war precisely on those sections of the population who have always been at the receiving ends of multiple forms of systemic and institutional oppression. Instead of addressing the genuine grievances of Adivasis facing forcible displacement and dispossession, the Indian government has cracked down on their legitimate protests in flagrant violation of the letter and intent of the Indian Constitution.

Foreseeing the disastrous impact that Operation Green Hunt will have on the common people in those regions, different sections of civil society have called for a dialog between the state and various sections of the resistance, including the CPI (Maoist) and different people’s organizations, involved in struggles in the Adivasi regions. Several attempts to make progress in these efforts failed, with different politicians, bureaucrats and security officers continuously attempting to scuttle negotiations.

A glimmer of hope had risen due to the civil society initiative represented by Swami Agnivesh, with the Union Home Minister and Azad, as spokesperson of CPI(Maoist), responding to him in a letter detailing the suitable conditions under which a dialog might begin. It is reported that Azad was on his way to consult other members of CPI (Maoist) in order to decide future steps for proceeding with this initiative when he was allegedly abducted and killed, thus throwing the possibility of negotiations into disarray. The murder of a spokesperson of a political organization, with which dialog is supposedly being planned at this crucial juncture, raises serious doubts regarding the government commitment to such a dialog.

In this situation, the activists in India need your presence support. Join us to protest against Operation Green Hunt and the increasing violence of the Indian State on democratic movements on August 13, 2010 at 11 a.m. in front of the Indian Consulate in New York City. We have chosen August 13, as this date roughly coincides with Indian Independence Day, when the country became a sovereign nation-state following its colonial occupation by Great Britain. We would, therefore, like to record our protest and remind the public that the promises of the Indian independence have not only remain unfulfilled, but the current Indian government has resorted to military repression to quell democratic dissent in a way uncannily similar to the erstwhile British “overlords.” We invite all in diaspora, the international community of media activists, human rights workers, academics and intellectuals and artists to join us.

Filed Under: DIARIES Tagged With: Events, India, Press Release, State Repression, USA

Misery is Relative / Comparison of Minimum Wages in Delhi and London

July 20, 2010 by Radical Notes Leave a Comment

GurgaonWorkersNews no.28 (July 2010)

The following text is devalued with increasing speed: the global crisis and subsequent struggles shake the global wage scale. In June 2010 the Indian government ‘free-floated’ the petrol and diesel prices, fueling the already double-digit inflation. In the UK the government increased the VAT by 20 per cent and cut wage-subsidising benefits. The collapsing Euro inflates the Rupee. The struggles in China and Bangladesh put pressure on wages in the global low-income zones. We will see whether class struggle and crisis will re-shape the global wage-division, old concepts like ‘workers’ aristocracy’ and most of the concepts of ‘integrated’ working-classes ‘in the imperialist nations’ will help little to understand. We need global proletarian debates.

The following ‘relative’ comparison of Delhi and London minimum wages and their respective purchasing power would be a rather tedious endeavor if seen as a purely statistical enterprise or poverty competition. It would result in the usual ‘statistical findings’, e.g. that if you are inclined to become a well-groomed truck-driver with a passion for cheap daily newspapers and road-side cups of tea you should move to Delhi; whereas for any other reasons you should make it to or stay in London – if you can – because you will earn roughly four and a half times as much in terms of purchasing power. If you were a textile company manager looking for low wage zones your perspective might be a little more blunt. You would compare the absolute wage difference between a potential minimum wage worker in London’s East End (around 1,200 GBP per month) and those of a worker in Delhi’s Okhla industrial zone (around 76 GBP per month). The fact that in absolute terms the London wages are about sixteen times higher will make investment decisions a fair bit easier.

We compare the workers’ wages to consumer goods and services. This in itself will tell us little about the actual social position we find ourselves in once we depend on this wage and have to sell our labour power for it. How does our wage compare to the income of people in the city around us? Will we feel ‘excluded’ from wider social life and life-styles? How does the wage compare to the general ‘productive social wealth’, the material power to set in motion bodies and minds for profitable purposes or mass destruction? We compare wages which are set by two different states, wages which are defined as ‘minimum’ in terms of the local, moral, historic minimum level of reproduction for a worker. One local context is the capital of an ‘ex-colony’, the capital of a developing country, the regional centre of an emerging global industrial cluster. The other local context is the capital of an ‘ex-empire’, the centre of historical Industrial Revolution, with 250 years of industrial working class history. The centre of world finance, real estate bubbles and a declining manufacturing base. This also means that Delhi area is dominated by a work-force which – in general sense – knows how many acres of wheat you can reap in a certain amount of time or how many shirts or metal parts a worker can produce per day. Productive workers from mainly rural backgrounds have a rough notion how their productivity relates to wages they receive and prices they have to pay. London is characterised by mainly ‘unproductive labour’: a cleaner might know how much money their company charge the client, they know about exploitation on an immediate level, but less on a social scale.

Workers’ wages and their consumption level tell us something about the ‘stage of capitalist development’, if we agree that one of the characteristic outcomes of industrial working class struggle is that after the class wars of mining, railway building and machine and weapon manufacturing workers a following generation of workers is able to buy ‘industrial goods’ in form of long-lived consumption goods like radios, fridges or washing machines. We also have to mention the ‘sources’ of our consumer products. In Delhi we refer to the most common trade-form for basic food items, vegetables or durable consumer goods: small traders. The prices in London are based on prices of large super-market chains for daily goods and internet price comparisons for durables – because this is how proletarians shop in general. We leave it to a different research to find out whether the demise of small traders and the consequent drop of general wage level due to increased competition will be compensated by ‘cheaper’ large-scale and ‘more direct’ trading.

When we compare London-Delhi wages relative to food items, the London wages are about five to six times higher, if we compare them in relation to the mentioned ‘durable consumer articles’, London wages are fifteen times higher. The astonishing fact is the relative ‘expensiveness’ of agricultural goods’ in India, compared to ‘basic manufactured items’: While I can buy five times as much rice of my London minimum wage, I can ‘only’ buy three times as many shirts or shoes. This is only partly due to higher relative petrol prices in India, which form a decent chunk of food prices. Apart from room rents – which are a peculiar issue – it is personal services such as cooked food or hair cuts where a minimum wage in Delhi can command as much personal service labour as the wage in London. This tells something about the low levels of service proletarian wages in the Indian metropolis! Out of good attitude we put ‘global goods’ into the equation, e.g. Nescafe, Mc Chicken, Nokia mobile phones or IPods. We can see that the ‘wage division’ widens when it comes to these ‘global goods’ – which doesn’t mean that the Delhi young proletarian would not have access to the ‘use value’ of these goods. Let’s not argue about the use value of a McChicken, but of Chinese Fake-Brand MP3-Players or Handy-Cams. Apart from the ‘old school’ consumer durables like fans, gas-cookers and bicycles, the modern proletarian in Delhi owns a mobile phone with gadgets. We suggest the thorough article on Sanhati: “Do 600 Million Cellphones Make India a Rich Country”

But let’s stick to the basics: the level of minimum wage as means of reproduction for a worker. Behind this phrase a political field of question opens up. In London the nominal/direct wage does not cover reproduction, in the sense that in case of illness, unemployment, old age the state has to guarantee an additional part of income. The London minimum wage is hardly a ‘family wage’: the state has to top up in terms of child benefits etc. In Delhi these ‘welfare provisions’ only exist on paper, in 90 per cent of cases workers won’t get unemployment or pension money, neither health care. For most workers in Delhi the minimum wage has to cover parts of these future or ‘accidental’ costs. In a purely economical sense we would have to add these monetary benefits or service costs to the London minimum wage. On the other hand a London worker is very likely to be ‘fully proletarianised’ in the sense that s/he hasn’t got a ‘second home’ in a village and no access to – however small – a piece of land and wider family network which could act as a basic security net. We can argue whether it is not the other way around – that the urban wage has to finance the maintenance of the small piece of land and the rural family members. Fact is that many workers in Delhi industrial areas try to save money – first of all on rent – in order to be able to ‘save money for the home’. Ideally a ‘single worker’ – who is either unmarried or whose family lives in the vilage’ will try to save half of his or her monthly wage. The most common life perspective – or illusion – is that the urban industrial wage work is a temporary stage and that there is a future as semi-peasant / shop-keeper etc. in the village.

When it comes to rent and living arrangements the ‘village’ plays a role. In London only ‘migrants’ would stay five people to a room, no separate kitchen – which is the norm in Delhi, not only for families, but also for unrelated young workers. In this way they can drop the rent share of their total wage to under 10 per cent. In London you might rent a room in a shared flat, giving you access to a kitchen and a toilet, which will cost you around 50 per cent of your wage. In the relative wage comparison we took all three different scenarios into account: comparing the most common set-up; comparing ‘a single worker’ to ‘a single room’ according to the respective local ‘workers’ housing standards’; comparing ‘a single worker’ to ‘a single room’ according to London housing standards. The main obvious result is that compared to other ‘goods’ rent in London is relatively high and the main reason for why the relative wage levels are ‘only’ four to five times higher. Who would have thought?! At this point the quantitative state of mind leaves us clueless: Is it expression of a higher living standard to live in a London Stratford bed-sit, while your two-weeks dead neighbour starts to send his whiffs through the mortar?

What about the ability of workers in Delhi and London not only to be a categorial part of global working class formation, but to take part in it in a physical and communicative way. We can compare costs for flights Delhi-London and costs for an hour spent on the internet and we can see that a flight belongs to the ‘fridge/washing machine’-category out of reach for most Delhi workers, while the internet is closer to home. Here again, we reach other forms of exclusion. Even if a worker in Delhi would be able to save money for the flight, that does not mean that s/he will get a visa. Even if a worker in Delhi can surf on the net, the fact that the Hindi sites are still rather insular compared to the ‘global electronic village’ of the the English speaking Indian upper-class is not an ‘economical’ problem. Which does not mean that the worker in Delhi would not have the means for ‘political mass-expressions’, see prices for printing a small newspaper or for sending it by post. On a similar relative price level range the products of ‘knowledge circulation cum mental domestication’ such as daily newspapers or cinema. In terms of access to career paths to leave the minimum wage misery it looks rather bleak for proletarians on both sides of the globe. A truck driving license might be within reach, but won’t solve the initial problem. The worker in Delhi would have to save around 833 years in order to afford the two years fees for a MBA (management degree), while the worker in London might make it in 20 years. Great.

How do these wages relate to themselves in the historical dimension, does the gap close or widen over time? Difficult question. We can assume that since it’s introduction in 1997 the relative minimum wage in the UK fell – which was 3.60 GBP at the time. But did it increase in Delhi? Minimum wage in Delhi 1990 was around 900 Rs. The early 1990s were turbulent times in terms of inflation, up to 18 per cent annual consumer price increase in 1994 to 1996. If we assume an average annual inflation of around 8 per cent for 1990 to 2010 period, the wage of 900 Rs would have had to increase to 4,177 Rs by 2010 to compensate. Here the fundaments of statistics become drift-sand. Since 1990 the share of temporary and casual jobs, the amount of jobs through contractors increased rapidly, while more and more permanent workers lost their jobs. May be the minimum wage has increased in real terms, the general conditions of industrial workers in Delhi have hardly improved. In what kind of ‘working class position’ would a London minimum wage be situated in Delhi? If we take a common commodity basket (rent, food, clothes, transport, consumer goods – according to average share of total wage), we come to a medium wage ratio of 4.5 times higher wages in London. This would mean that the ‘equivalent’ to the London wage in terms of purchasing power would be around 23,400 Rs per month in Delhi. What kind of wage workers in Delhi would earn this kind of wage – which would place them into widely hailed ‘emerging Indian middle-class’? Some call centre workers earn that kind of money. Permanent workers in the automobile industry earn this much, partly more. We can see that major wage differences run within the industrial areas of Delhi as much as within the global working class. We can also see that the ‘wage question’ is everything but an ‘economical question’, but – in the end – a question of social-historical power, of class power. Let’s stop calculating!

But whoever wants to know how we calculated things: We could see a rather shaky exchange rate between Rupee and British Pound during 2009 – 2010. At the end of November 2009 the rate was 1 GBP / 78 Rs. Since then the British Pound steadily declined in value – or rather, the Rupee got appreciated. On 3rd of May 2010 the rate was 1 GBP / 68 Rs. For the total wage calculation we take the minimum wage for industrial helpers in Delhi May 2010 of 5,200 Rs per month based on an 8-hours day and a 6-days working week. We have to emphasise that only a fraction of workers actually get this wage, most workers earn less or have to work considerably longer hours for it. We base the London hourly minimum wage of 5,80 Pounds on the same monthly working times.

Monthly Minimum Wage Delhi: 5,200 Rs / 76.5 GBP
Monthly Minimum Wage London: 81,600 Rs / 1,200 GBP
Exchange Rate 3rd of May 2010: 68 Rs / 1 GBP

Item [Kilo Rice]: Price Rs in Delhi [22 Rs] / Price GBP in London [1.10] – Amount of Items I can buy with monthly wage in Delhi [236] / London [1091] (London Wage this times higher/lower than Delhi Wage [4.6])

Food

Kilo Rice: 22 Rs / 1.10 GBP – 236 / 1091 (4.6)
Kilo Wheat Flour: 14 Rs / 0.3 GBP – 371 / 4,000 (10.7)
Kilo Potatoes: 10 Rs / 0.5 GBP – 520 / 2400 (4.6)
Kilo Pasta: 35 Rs / 0.8 GBP – 149 / 1,500 (10)
Kilo Red Lentils: 48 Rs / 1.2 GBP – 108 / 1,000 (9.2)
Kilo Chickpeas: 80 Rs / 1.3 GBP – 65 / 923 (14.2)
Kilo Sugar: 35 Rs / 1 GBP – 148 / 1,200 (8.1)
Kilo Carrots: 20 Rs / 0.85 GBP – 260 / 1412 (5.4)
Kilo Apples: 40 Rs / 1 GBP – 130 / 1200 (9.2)
Kilo Milk: 26 Rs / 0.75 GBP – 200 / 1600 (8)
Kilo Joghurt: 45 Rs / 2 GBP – 115 / 600 (5.2)
Liter Bottled Water: 12 Rs / 0.7 GBP – 433 / 1714 (4)

McChicken: 52 Rs / 1 GBP – 100 / 1200 (12)
Nescafe 50g: 63 Rs / 1.5 GBP – 86 / 800 (9.3)
0.5 Liter Bottle Coke: 20 Rs / 0.6 GBP – 260 / 2,000 (7.7)
Bottle Beer: 50 Rs / 1.3 GBP – 104 / 923 (8.9)
10 Cigarettes 30 Rs / 3 GBP – 173 / 400 (2.3)

Consumer Goods

Shirt: 150 Rs / 15 GBP – 35 / 80 (2.9)
Shoes: 250 Rs / 20 GBP – 21 / 60 (2.9)
Plastic Bucket: 60 Rs / 3 GBP – 86 / 400 (4.6)
Block Soap: 13 Rs / 0.6 GBP – 400 / 2000 (5)
Second-Hand Bicycle: 500 Rs / 30 GBP – 10 / 40 (4)
Nokia Mobile Phone: 1,500 Rs / 25 GBP – 3.5 / 48 (13.7)
Cheap Television: 5,000 Rs / 30 GBP – 1 / 40 (40)
Flat-Screen Television: 10,000 Rs / 110 GBP – 0.52 / 11 (21.1)
Fridge: 8,500 Rs / 100 GBP – 0.6 / 12 (20)
Washing Machine: 7,000 Rs / 120 GBP – 0.7 / 10 (14.3)
Dell Laptop Inspiron 14: 31,400 Rs / 500 GBP – 0.16 / 2.4 (15)
IPod Classic 80GB: 12,000 Rs / 179 GBP – 0.43 / 6.7 (15.9)
125cc Honda Motorbike Stunner CBF: 57,000 Rs / 2,300 GBP – 0.091 / 0.5 (5.5)
Basic Ford Fiesta 1.6: 650,000 Rs / 12,000 GBP – 0.008 / 0.1 (12.5)

Personal Service

Fresh Squeezed Fruit Juice: 20 Rs / 1.8 GBP – 260 / 666 (2.5)
Tea in Cafe: 4 Rs / 0,8 GBP – 1,300 / 1,500 (1.2)
Basic Meal: 20 Rs / 3 GBP – 260 / 400 (1.5)
Haircut: 20 Rs / 8 GBP – 260 / 150 (0.6)

Housing

Monthly Room Rent (three to a room): 400 Rs / 400 Rs – 13 / 3 (0.23)
Monthly Room Rent (working class room): 1,100 Rs / 400 GBP – 4.7 / 3 (0.64)
Monthly Room Rent (same standard): 5,000 Rs / 400 GBP – 1.04 / 3 (2.88)
Monthly Electricity Bill: 40 Rs / 30 GBP – 130 / 40 (0.3)

Transport

Innercity Bus Journey: 15 Rs / 1.2 GBP – 347 / 1,000 (2.9)
500 km Train Journey: 200 Rs / 60 GBP – 26 / 20 (0.77)
Flight Delhi-London AirIndia: 20,000 Rs / 310 GBP – 0.26 / 3.9 (15)
1 Week Thailand (Mallorca) incl. Flight: 15,000 Rs / 180 GBP – 0.35 / 6.6 (18.8)
Liter Petrol: 48 Rs / 1.2 GBP – 108 / 1,000 (9.3)

Knowledge Circulation

Daily Newspaper: 4 Rs / 1 GBP – 1,300 / 1,200 (0.77)
National Letter Stamp: 5 Rs / 0.41 GBP – 1040 / 2927 (2.8)
Soft-Back Book (Penguin): 200 Rs / 9 GBP – 26 / 133 (5.1)
Cinema: 50 Rs / 7 GBP – 104 / 171 (1.6)
Hour Internet: 15 Rs / 1 GBP – 347 / 1,200 (3.6)
Print of 7000 Copies 4 Pages A4: 4,000 Rs / 400 GBP – 1.3 / 3 (2.3)

Career

Truck Driving License: 1,600 Rs / 1,400 GBP – 3.25 / 0.86 (0.26)
MBA Two Years Fees: 1,000,000 Rs / 49,900 GBP – 0.0052 / 0.024 (4.6)
Three Years Apprenticeship Mechanic: 187,200 Rs (three years no income) / free

Filed Under: DIARIES Tagged With: Delhi, Economic Notes, Economy, India, Labour, Working Class

The Political Economy of Oil Prices in India

July 13, 2010 by Radical Notes 3 Comments

Sanhati

Based on the recommendations of the Kirit Parikh Committee, the Government of India (GOI) on 25 June, 2010 announced the full deregulation of the prices of two crucial petroleum products: petrol and diesel.[1] Henceforth, prices of these two products will be determined by the unfettered play of market forces and government “subsidies” on these products, which worsen the fiscal situation, will be completely removed.[2] In one deft move, therefore, government control over the determination of the prices of these key commodities was willingly ceded to the magic of the market, presumably to “rationalize” prices and to wipe away losses of state-run Oil Market Companies (OMCs) to the tune of Rs. 22,000 crore.

There were generally three types of reactions to this announcement in the mainstream English news media. Firstly, the markets were ecstatic about the full liberalization of petrol and diesel prices and these sentiments were almost immediately reflected in rising oil stock prices.[3] Secondly, there were strident complaints that this policy change was not enough: prices of kerosene and liquefied petroleum gas (LPG) were still minimally under government control and therefore even after the deregulation move, the losses of the OMCs on account of these two petroleum products would stand at Rs. 53,000 crore for fiscal 2011.[4] Thirdly, various opposition parties have pursued their ‘Bharat Bandh’ without much vigor.

Before getting into a detailed analysis of the political economy of oil prices in India, let us quickly address three questions. Why are the financial markets and the mainstream media pleased with the liberalization of petrol and diesel prices? An important reason is that this policy shift is a victory for capitalist interests of a long drawn struggle against the regulation of oil prices in India. Using the myth of subsidization and fiscal burden, capitalist interests have long been pushing for the liberalization of oil prices. The first crucial victory of this struggle came in 2002 when the government dismantled the administrative pricing mechanism (APM). This move reduced the “subsidies” on petrol and diesel but the government decided to continue to “subsidize” kerosene and LPG. In 2005, the GOI constituted the Rangarajan Committee to study pricing and taxation of petroleum products.[5] This committee recommended a half-way house: a ceiling on the refinery gate price (computed according to the so-called trade parity formula) along with the freedom for OMCs to set retail prices. Of course, this was not enough. Accordingly, in 2009 the next committee was constituted to examine the same set of issues, i.e., the Kirit Parikh Committee.[6] In its report submitted in February 2010, the Kirit Parikh Committee finally recommended what the capitalist sector had been telling GOI all these years. It recommended full liberalization of petrol and diesel prices.[7] Although it was famously opined that the “executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie” we wonder whether it might be more reasonable to believe instead that “the committees of the Indian state are but committees for managing the affairs of the big bourgeoisie under neoliberalism.”

In any case, this immediately bring us to the second question: what will the next committee recommend? The Kirit Parikh Committee has allowed some minimal control over the prices of kerosene and LPG. Recall that the private sector is livid with the residual losses of the OMCs (often misleadingly equated to the “under recoveries”) to the tune of Rs. 53,000 crore resulting from the marginal control that had been retained in the pricing of kerosene and LPG. Thus, even if one does not know the exact date when the next committee on petroleum prices will be set up, one presumes that this yet-not-constituted committee will strongly recommend liberalization of kerosene and LPG prices. Otherwise, it would be either censored or ignored under the current arrangements.

The third question is related to the carefully constructed mythology of oil prices in India. One of the crucial components of the carefully nurtured mythology about oil (i.e., petrol, diesel, kerosene and LPG) prices in India is the idea that the government offers a huge subsidy to consumers. This subsidy, it is claimed routinely in government pronouncements, policy analyses and media reports, shows up as the “under recovery” of state-owned OMCs and pushes up the budget deficit of the government. The subsidization of oil products, follows the next step in the argument, is wasteful of scarce resources. It is ultimately unsustainable from a public finance perspective and should therefore be curtailed. How should this huge subsidy burden be curtailed? By withdrawing government control over petroleum product prices and letting market forces a free rein, or so runs the argument.

The wide currency of this argument would be obvious from even a cursory glance at mainstream media reports related to oil prices in India. A Business Standard report last year highlighted the close to Rs. 25,000 crore of “under recoveries” of the OMCs, dramatizing this “finding” by suggesting a revenue loss of Rs. 75 crore a day.[8] Similar reports find their way to the international media too. Earlier this year, Reuters highlighted the need for deregulation of oil prices because of the increasing burden of “under recoveries.”[9] A special 2008 report on BBC made the same point and speculated that Indian oil companies might be losing about 100 million US Dollars (USD) a day.[10] The Financial Times, in an editorial of July 6, 2010, argued for the need to phase out “subsidies” and end state control over petroleum prices.[11] Such pronouncements are not confined to media reports. It is also propagated by policy analysts in various research institutes. In a series of studies starting at least as early as 2006,[12] the International Energy Association (IEA) of the Organization for Economic Cooperation and Development (OECD) has highlighted the so-called fiscal burden of “under recoveries” of the OMC and has argued for the deregulation of oil prices.[13]

To sort through the complex of issues surrounding oil prices in India we need to address, at least, the following questions. Is the government really subsidizing petroleum products? Can “under recoveries” of the OMCs be understood as a measure of such subsidies? What, after all, are these “under recoveries”? Why is the private sector ecstatic with the deregulation of petrol and diesel prices? To answer these questions we will adopt a political economy perspective, i.e., we will try to see the class interests lurking behind the analysis of “experts”, changes in government policy and news coverage in the mainstream media. Once we carefully sort through the issues we will see that there is a simple motive force behind the whole complex of policy changes and committee recommendations: private sector PROFIT and more PROFIT.[14]

OIL INDUSTRY: STRUCTURE AND PRICES

To understand the much talked about “under recoveries” of the OMCs, it would help to familiarize oneself with the structure of the oil industry in India. The industry starts at what analysts call the “upstream” end, the site of exploration and production of the primary component that gives all varieties of petroleum products: crude oil. The major state-owned players in the upstream sector are Oil and Natural Gas Corporation Ltd. (ONGC), and Oil India Ltd. (OIL); the major private sector players are Reliance, Cairn Energy, Hindustan Oil Exploration Company Ltd. (HOEC), and Premier Oil.

The output of the upstream sector is crude oil, which feeds into the “downstream” sector: the sector responsible for refining the crude oil to get petroleum products (like petrol, diesel, kerosene and LPG), marketing the final products, and development and maintenance of pipelines. The major state-owned entities in the downstream sector are Indian Oil Corporation Ltd. (IOCL), Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL), and Mangalore Refinery and Petroleum Ltd. (MRPL); the major private sector players are Reliance, Essar and Shell.

The distinction between the upstream and downstream sectors give us several important prices. There are the price of crude oil, and the refinery gate price of petroleum products. The first is the price that refiners pay to purchase the crude oil (either from domestic or foreign producers), and the second is the price at which the refiners “sell” the petroleum products to the next stage of the industry. Note in passing that about 80 per cent of India’s crude requirement in 2008-09 was met with imports. Hence, this is the primary channel through which international prices of crude oil affects the Indian economy.

The final sector of the industry is that which maintains an interface with the consumers, the sector which takes care of transportation and distribution of the petroleum products to the retail outlets. The major state-owned players in this sector are GAIL (India) Ltd., and IOCL; the main private sector players is Petronet India Ltd., though Reliance, Essar and Shell have also entered into the fray. This brings us to the third important price in oil industry analysis, the pre-tax price: this price can be arrived at by adding marketing, storage and transportation costs to the refinery gate price of the relevant petroleum product. Adding excise duty (a form of tax levied by the Central Government) and sales tax (levied by State Governments) to the pre-tax price gives the final retail price of petroleum products, the price, for instance, that you or any of us pay at the petrol pump.

Let us summarize: the retail price of petroleum products (like petrol, diesel, kerosene and LPG) equals the sum of the price of crude oil, refining cost plus profit, marketing & storage cost plus profit, distribution cost plus dealer profit, and taxes & duties.

PETROL: COMPONENTS OF PRICE

To clarify matters further and to get a firm grasp on the various prices that we have introduced, let us work through a concrete example. In July 2009, the average international price (FOB) of crude oil was 64.618 USD per barrel, which translates into 1.538 USD per gallon and hence 19.87 rupees per liter. Note that in converting from USD to rupees we are using the average exchange rate between the USD and rupees that prevailed in July 2009: 48.83 rupees per USD.[15] Two things should be kept in mind. First, in 2008-09, India imported about 80 percent of its crude oil consumption; second, in the current dispensation there is zero customs duty on crude oil.[16] Hence, for the oil industry in India, the price of crude oil was 19.87 rupees per liter.[17]

Figure 1: Price Build-Up for Petrol

In a written reply to a question in the Lok Sabha in August 2009, Petroleum Minister Murli Deora informed that “of the Rs 44.63 a litre retail selling price of petrol in Delhi, Rs 13.75 is because of the incidence of excise duty and Rs 7.44 a litre due to sales tax.”[18] Here we have two more prices: the retail price of petrol in Delhi(44.63 rupees per liter) and the pre-tax price of petrol (23.44 rupees per liter).

As far as we know refinery gate prices of petroleum products are not publicly available; hence we cannot give exact figures for these prices. But we do have publicly available information which allows us to provide rough estimates of refinery gate prices. In a November 2006 report on the cost structure of OMCs, we learn that the average operational and function costs (excluding labour cost) of the OMCs come to about 1.9 rupees per liter. Thus, if we deduct this amount from the pre-tax price of peterol (23.44 rupees per liter), we arrive at the following rough estimate of the refinery gate price of petrol in India in July 2009: 21.54 rupees per liter. This information is summarized in Figure 1 and 2.

Figure 2: Components of Retail Price of Petrol

UNDER RECOVERIES?

With this background in place, we can now address the issue of “under recoveries”, which is misleadingly referred to either as “losses” or as “subsidy”. The OMCs “are currently sourcing their products from the refineries on import parity basis which then becomes their cost price. The difference between the cost price and the realized price represents the under-recoveries of the OMCs.” (Rangarajan Report, 2006, v). In other words, under recovery = import parity price – realized price. Realized price is something on which the government exercised some control. If this is fixed at a lower rate than the import parity price then under recovery shows up. But under recoveries are different from losses. To understand this we need to focus on the definition of import parity price. The Rangarajan Report informs us,

[i]mport parity pricing has been a commonly used approach in a regulatory context or in making a case for tariff protection. The argument in support of this approach is that in a situation where there is no domestic manufacture of a product, the cost of supplying it in the domestic market will be the landed cost which is the import parity price. However, even in a situation where there is domestic manufacture, import parity price can be taken as the international competitive price that sets the ceiling for the domestic price. When domestic refiners are given the import parity price, they enjoy a rent which is equivalent to the differential in ocean freight and associated costs as between crude and products. In such a situation, there is case for mandating the refiners to share the rent with public interest. (Rangarajan Committee Report, 2006, pp. 5)

In other words, import parity price is the price which one would pay if the good is imported. In India this is clearly not the case as demand for petroleum products (like petrol, diesel, kerosene and LPG) can be met by domestic refineries. Indeed, there is a 35% surplus refining capacity over the domestic demand (Sethi, 2010). The price at which domestic refineries can supply petroleum products (export parity price) is less than the import parity price. The difference was about 1.71 rupees per litre of diesel in April-Spetember 2005 (Rangarajan Committee Report, 2006, pp. 4). To correctly measure the under recoveries, therefore, a better formula would be to use export parity price as the benchmark. Using import parity price inflates the notional concept of under recovery, which is then trumpeted by the mainstream media as state-owned OMC losses. Secondly, it is also to be noted that the government had provided sumptuous subsidies towards building the refineries. It is but natural that the refineries share some burden by quoting a lower benchmark price. Instead, the private refineries are being allowed to sell products at import parity price to the state OMCs (Rangarajan Committee Report, 2006, pp. 30). The third reason why under recoveries are only notional and “are different from the actual profits and losses of the oil companies as per their published results” is that “[t]he latter take into account other income streams like dividend income, pipeline income, inventory changes, profits from freely priced products and refining margins in the case of integrated companies.” (Rangarajan Committee Report, 2006, v). Public Sector oil companies do constitute an integrated structure – the notional losses of the OMCs are therefore shouldered by the upstream firms such as the ONGC, and GAIL (Rangarajan Committee Report, 2006, 30). They also are some of the biggest profit earners of the country[19]. Hence to talk about unsustainable susbsidies is a white lie.

To sum up: first, under recoveries can only occur when there is some control over the prices that OMCs can charge the consumers; if OMC were given full flexibility in terms of setting prices, they would probably always charge a price so as to keep the under recoveries to nil. Second, most of the OMCs don’t import petroleum products (like petrol, diesel, kerosene and LPG). They buy these products from refineries which, in turn, import crude oil. Thus, import parity price – which uses the import price of petroleum products instead of crude oil – is only a notional cost that they pay for the products they sell to the consumers. Hence, “under recoveries” of the OMCs refer only to a notional value of the losses of the OMCs; it is not a real quantity which figures on their balance sheets. Thus, it is a mistake to equate “under recoveries” with state-owned OMC losses, as the mainstream media constantly does. Of course, the meaning of under recoveries will change drastically if we allow private sector players into the scenario, as we will see later.

While the mainstream media commits the mistake of portraying the under recoveries of the OMCs as “losses”, government officials and policy analysts err by depicting the under recoveries as “subsidies” or “effective subsidies” (the 2009 IEA report and the Kirit Parikh Committee are notable recent examples). Let us see why.

GOVERNMENT SUBSIDY?

It is meaningful to talk about government subsidies in relation to a commodity only when the tax revenue generated by the commodity (for the government) is lower than the subsidy that the government offers to producers/sellers of that commodity. Another way of saying the same thing is to insist on the usage of net subsidies: if the government tax revenue on a commodity is higher than the subsidy that it offers on that commodity, then on a net basis the subsidy is a negative quantity. In such a situation it is meaningless to say that the government subsidizes the commodity.

Figure 3: Financial Balances of the Oil Sector in India

Is the GOI subsidizing petroleum products in any meaningful sense, i.e., on a net basis? There is a simple way to answer this question: compare the total tax revenue coming from petroleum products to the exchequer with the sum of under recoveries and direct subsidies. Figure 3 plots precisely these quantities for the past few years. Note that the sources of the data in Figure 3 are as follows: (a) the data for under recovery, taxes (sales tax) and duties (excise and customs duties), and total revenue has been taken from the website of the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas, GOI, and the Kirit Parikh Committee Report; (b) the data for direct subsidy has been taken from Table 26, Basic Statistics on Indian Petrol and Natural Gas. [20]

Several interesting facts emerge from Figure 3. First, the direct subsidy of the GOI for petroleum products is extremely small. In fact, direct subsidy is a tiny fraction (less than 1 percent) of the total tax revenues from the oil sector. Second, the total contribution of the oil sector to the exchequer has been higher than the sum of under recoveries of the OMCs and direct subsidies on petroleum products for all the years since fiscal 2004. Third, even the sum of duties (customs and excise) and (sales) taxes on petroleum products, which is only a fraction of the total contribution of the oil sector to the exchequer, has exceeded the sum of under recoveries of the OMCs and direct subsidies in all the years since 2004-05. The inescapable conclusion from Figure 3 is that there is a negative net subsidy on petroleum products in India. Another way of saying the same thing is that the government extracts a net positive tax revenue from petroleum products in India. The oft-repeated assertion that petroleum products are subsidized in India is simply not true.

WHAT ARE UNDER RECOVERIES, TRULY?

We have suggested, so far in our analysis, that under recoveries of the state-owned OMC are neither financial losses (because notional prices are used) nor can they be used as measures of subsidization (because there is negative net subsidy on the oil sector).

What are they? Why is the private sector and the mainstream media so concerned about under recoveries?

To get a handle on this important issue, let us imagine a vertically integrated, state-run corporation that sells petroleum products. This corporation imports crude oil, much like India does today, refines it to produce petroleum products and sells it to consumers. Thus, this corporation contains within itself both the upstream and the downstream sectors of the industry, as well as the retailers/dealers. If the final price at which this hypothetical corporation sells petroleum products to the consumer is higher than the sum of the price of crude oil, the cost of refining & distribution (with some rate of return included) and taxes/duties, then this corporation would be said to be making a profit (from the perspective of the people of the country).

Now, let us break up this hypothetical state-owned corporation into two parts, one of which is involved only in refining and the other only in distribution, both still being state-owned. In this case, there will be two balance sheets and the transaction that was earlier internal to the big corporation would now show up as sale/purchase between the two smaller corporations. Even in this case, we would adopt the same procedure as above to see whether the two firms taken together are making a profit: if the final retail price is higher than the sum of the price of crude oil, the cost of refining & distribution (with the same rate of return as before included for both corporations now) and taxes/duties, then the arrangement is profitable. In other words, it does not matter if “losses” show up in the balance sheet of one of the corporations as long as the government’s tax revenue is adequate to cover that “loss”.

Thus, if the government administratively fixes the price of petroleum products such that the distribution corporation suffers under recoveries, it is hardly a matter for concern because (a) the government’s tax revenues are far above the under recovery of the state distribution corporation (in our example), (b) upstream firms make enough profits to bear the burden. This is more or less the situation of the oil sector in India if we consider the state-owned upstream and downstream corporations taken together. Since the total revenue from the sector, and government taxes, are higher than the “losses” showing up on the balance sheets of some of the corporations, Indian society is not making a net loss.

The last and crucial step of the argument is to allow private sector players into the scenario and see how everything changes drastically. Continuing with the example, suppose now, we have, in addition to the two state-owned corporations, a private corporation. This hypothetical capitalist firm is involved in refining and distribution. Now, it is obvious that government control over prices that lead to “under recoveries” would translate into true losses or lower rates of profit for the private corporation. If the realized price is lower than the import parity price, in the balance sheet of the private OMC it would show up as loss – provided the OMC adopts the import parity price as the benchmark. But since the private firm has the refining facilities arm, like Reliance for instance, overall the firm might still make a profit because (a) taking import parity price as the benchmark means high profit margin for the refinery, (b) even without this high margin the refinery may itself be profitable enough to make up for the loss of the private OMC. Nevertheless, let us note that decontrolling the “realized price” promises even higher opportunities to earn profits for the private sector firm, as no under recovery now shows up.

That really brings us to the crux of the matter as regards under recoveries. The under recoveries of the OMCs do not mean much as long as they are covered by the tax revenue of the oil sector only when private sector players are absent from the scenario. As soon as private sector players enter the picture, the under recoveries of OMCs become a proxy for the losses of private sector players. Since the private sector wants to enter the oil sector and earn windfalls, it highlights the under recoveries and policy analysts endeavor to show it as a burden and the mainstream media faithfully relays that concern. The way to remove the under recoveries, i.e., the way to ensure a positive and high rate of profit for private capital in the oil sector is to do away with cause of under recoveries: government control over petroleum product prices. Hence, the recommendations of various “experts” is to liberalize oil prices, and the GOI, by accepting and implementing that recommendation is working to ensure high and positive rates of profit for private capital in the oil sector.

Let us end with an example that you can chew. From Petroleum Minister Murli Deora’s answer to the Lok Sabha we know that the pre-tax price of petrol was about 23.44 rupees per liter in July 2009; if Reliance or Essar sold petrol in Delhi in July 2009, this is roughly the after-tax revenue it would make on each liter of petrol. What would be an estimate of the cost that Reliance or Essar would bear for a liter of petrol? In July 2009, the average international (FOB) price of crude oil was, as we have already noted, 64.618 USD per barrel, which translates into 19.87 rupees per liter.. Thus, if Reliance or Essar imported crude for their refineries, they would pay about 19.87 rupees for each liter.

What mark-up over processing and marketing cost would they want? The average international pre-tax price of gasoline in July 2009 was about 2.33 USD per gallon; since the international price of crude oil was 1.538 USD per gallon, this implies a mark-up over processing and marketing cost of 1.515 (= 2.33/1.538). Thus, for an international oil company, the price of petrol (gasoline) was set at about 152 per cent of the cost (of crude oil). It seems reasonable to assume that Indian capital would also like a similar, if not higher, mark-up over cost. Thus, in July 2009 Reliance or Essar or Shell would have liked to be able to set a pre-tax retail price that was 152 percent of the cost of crude oil. So, what pre-tax price of petrol in India would have been required to ensure an internationally competitive mark-up over processing and marketing cost? The answer is 30.20 rupees per liter (= 19.87 * 1.52).

Now things are clear. According to the Petroleum Minister, the pre-tax price of petrol in Delhi was only 23.44 rupees per liter in July 2009; that meant, using an international rate of return benchmark, a 6.75 rupees per liter less profit for a private sector player like Reliance. That, it is clear, was enough to create a hullabaloo about under recoveries and fiscal burden and the efficiency of the market and push the government to set up the Kirit Parikh Committee and decontrol petrol and diesel prices. Profit, you see, is what this whole fuss is about.

Resources for Further Study:

Rangarajan Committee Report: http://petroleum.nic.in/Report1.pdf

Kirit Parikh Committee Report: http://petroleum.nic.in/reportprice.pdf

Surya Sethi’s 2010 EPW article: “Analysing the Parikh Committee Report on Pricing of Petroleum Products,” Economic and Political Weekly, March 27, 2010. [PDF] »

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[1] http://www.pib.nic.in/release/release.asp?relid=62834

[2] The Times of India has reported that diesel prices have not yet been fully deregulated. This is misleading. The very first paragraph of the press release of the government (http://www.pib.nic.in/release/release.asp?relid=62834) says: “In the light of Government’s budgetary constraints and the growing imperative for fiscal consolidation, and the need for allocating more funds to social sector schemes for the common man, the Government has decided that the pricing of Petrol and Diesel both at the refinery gate and the retail level will be market-determined.” (emphasis added) The next sentence of the press release has the caveat that the TOI report picks on: “However, in respect of Diesel, the initial increase in retail selling price of Diesel will be Rs. 2 per litre at Delhi, with corresponding increases in other parts of the country. Further increases will be made by the Public Sector Oil Marketing Companies (OMCs) in consultation with the Ministry of Petroleum & Natural Gas.” So, it is true that any price increase of diesel which is over Rs. 2 will require government consent at the moment, but this seems mere window dressing given that the principle of market-determined retail prices has been accepted and loudly affirmed.

[3] http://blogs.wsj.com/indiarealtime/2010/05/20/governments-price-rise-gives-gas-to-oil-stocks/

[4] http://www.deccanherald.com/content/77473/under-recoveries-remain-high-despite.html

[5] http://petroleum.nic.in/Report1.pdf

[6] http://petroleum.nic.in/reportprice.pdf

[7] Writing on the budget earlier in the year, Debarshi Das had already noted the government’s move towards decontrolling prices of petroleum products to facilitate the growth of private profit: http://sanhati.com/excerpted/2205/

[8] http://www.business-standard.com/india/news/psu-oil-companies-may-lose-rs-25000-crunder-recovery/369561/

[9] http://in.reuters.com/article/idINIndia-48367020100510

[10] http://news.bbc.co.uk/2/hi/7430784.stm

[11] http://www.ft.com/cms/s/0/44586cac-8930-11df-8ecd-00144feab49a,s01=1.html

[12] http://www.iea.org/work/2006/gb/papers/petroleum_product_pricing.pdf

[13] http://www.iea.org/papers/2009/petroleum_pricing.pdf

[14] Some of the points raised in this article were also made by Surya Sethi in a post-budget analysis in the EPW (“Analysing the Parikh Committee Report on Pricing of Petroleum Products,” Economic and Political Weekly, March 27, 2010)

[15] International prices of crude oil and other petroleum products can be found here: http://www.eia.doe.gov/emeu/international/prices.html#Motor

[16] Paragraph 4.43, Kirit Parikh Committee Report.

[17] To be more precise, we will need to add the the cost of insurance, ocean freight, ocean loss; this quantity is typically assumed to be about Rs 50 per tonne (http://www.projectsmonitor.com/detailnews.asp?newsid=9540). Since it is not very large, for our current computation, we will ignore it.

[18] http://www.expressindia.com/latest-news/Kerosene-LPG-prices-lowest-in-India-Govt/498859/

[19] http://en.wikipedia.org/wiki/List_of_companies_of_India

[20] http://petroleum.nic.in/petstat.pdf

Filed Under: DIARIES Tagged With: Economic Notes, Economy, Finance, India