By Patrick Kurbah
Benjamin Lyngdoh’s article, ‘Meghalaya’s politics of placating pressure groups’(ST July 13, 2023), laid vital emphasis on why it is now pertinent for Meghalaya to drive its economy and get past pressure groups — which have become insensitive to the suffering of the masses and are only raising gimmicky political issues to stay in the limelight.
Taking the economic spirit of his article forward, it is perhaps the most crucial juncture at which Meghalaya is standing, now that it has to take a call on introducing railways. With the Centre having already allotted funds for the same and the NFR waiting to get a green signal from the state for implementation, the MDA-2 government must do all that it takes to welcome this potential game-changer which could alter the course for our future generation and take care of most major woes that the state is currently facing.
For this article, let us take three areas: Unemployment, inflation and ease-of-doing-business concerns.
Unemployment is a significant issue in Meghalaya, with many young people struggling to find stable and well-paying jobs. Data from think tanks suggest that unemployment rate in Meghalaya is relatively low compared to the other states of the country. But that assumption is essentially based on the Labour Participation Rate (LPR), which is defined by the working population in the 16-64 age group employed or seeking employment. In Meghalaya, more people are seeking employment as per the LPR.
In this scenario, one does not need a reminder that Indian Railways is one of the largest employment providers in India. As per official data of the Indian Railways, more than 12 lakh people have received direct employment till 2022.
The introduction of railways could create a plethora of employment opportunities for our youth, both directly and indirectly. Direct employment would come from the construction, operation, and maintenance of the railway system, while indirect employment could arise from ancillary industries such as warehousing, last-mile logistics, hospitality, retail, and tourism that would fare well due to improved connectivity. This basically means railways will also be a supplement to the already-flourishing sectors in Meghalaya.
Inflation is another pressing concern for the state. It is largely acknowledged that the cost of doing business and the cost of living is quite high in Meghalaya. Even other goods and services aside, the everyday vegetable markets are currently testimony to the kind of unaffordability that is slowly creeping into our state, impacting marginalised classes directly and disproportionately. This is coupled with the fact that our local produce, accounting for packaging and transportation costs, are unable to compete with the products that come in from other states due to which local farmers are ultimately not able to sell the desired amounts and command the right price. This is also due to the fact that produce from other states become competitive in pricing due to the low transportation costs brought about majorly by railways.
Cut to Mendipathar, the only existing and functional railway station in Meghalaya, where farmers of the region regularly take the trains to go and sell all of their produce across the border in Assam and satisfactorily command prices. Detractors must probably do a case study on Mendipathar to understand the impact railways have had on the farmers of the region to understand the benefits the state could unlock.
Currently, the lack of a robust transportation network means that goods often have to be transported by road, which is both time-consuming and expensive (not to mention the benefits some members of the state are receiving due to this for which they are complicit in the opposition of railways, but that is a topic for another day). Railways, with their ability to transport large volumes of goods quickly and efficiently, could significantly reduce these costs, tackling inflation.
Lastly, the lack of an efficient transportation mode poses significant barriers to doing business in Meghalaya. It hampers the state’s ability to attract investment and stifles the exposure of local businesses to the outside world.
One can consider the warehousing model that Assam is currently following, which is getting a good chunk of revenue for the state. Major companies are currently willing to invest in our neighbouring state due to the possibility of setting up warehouses along the railway lines, doing away with heavy last-mile logistics costs. This in turn means easy and quick availability of goods for the state and furthermore, development of an eventual logistics hub for the entire northeastern region.
In Karnataka, seven major industrial estates have huge investments from some of the biggest companies in India due to their proximity to the railways.
In Odisha and Andhra Pradesh, which have major tribal belts, effective railway connectivity, and likewise industrial investments, have opened up formal employment opportunities for tribal youth, in turn uplifting the overall socio-economic status of their communities.
In short, effective transportation is a major contributor for bringing in investments, which facilitates employment and economic growth. No country or state in the history of mankind’s existence has ever flourished by keeping their economy closed.
Pressure Groups are not stakeholders:
Those demanding ILP without being able to provide ample justification as to why Meghalaya mandatorily needs this archaic measure for facilitating railways despite having the 6th Schedule, the MRSSA and the Land Transfer Act are not stakeholders. It prods one to think that it is probably a buzzword used most efficiently (and violently) by such groups when suddenly the limelight on them dies down. Let some facts be clear, pressure groups do not represent us in any form despite the noise they create. They are not democratically elected. They cannot provide employment to our children. They cannot bring in investments. If they are in no way helpful to society and to the government, they are not stakeholders in this debate.
Greater economic autonomy for Meghalaya
Let us not forget the standstill-condition the city reeled under when the Assam Petroleum Mazdoor Union stopped supply of fuel to the state for a few days in November last year. While the surrounding incidents were an exception, this also tells us that as a state we are still heavily dependent on other states, especially Assam, for transportation of our goods. In such a scenario, we need to look at how we can increase autonomy over our economy. If the opinion of people in the past has been that Assam cannot play a ‘big brother’ to Meghalaya, the first step is to secure our economy by welcoming the railways so that we are no longer at the mercy of our neighbouring state.
$10 billion economy possible with Railways
Chief Minister Conrad Sangma has laid an ambitious target in this year’s budget, that is to transform the state into a $10 billion economy by the end of his five-year term. In the current progression of the state’s economy, the goal looks far-fetched. However, railways could probably be a major catalyst in this journey. And why not? Indian Railways generate approximately Rs. two lakh crore annually, which leaves no room for doubting its economic impact. (The author is a legal consultant)
The introduction of railways in Meghalaya is a now or never scenario. The state cannot afford to let this opportunity pass by. It is time to move forward, with careful planning and responsible implementation, to harness the transformative power of railways for the benefit of Meghalaya and its people. Railways will only enrich our culture and uplift our state. Not threaten it.
(The author is a legal consultant)