Tuesday, February 17, 2015

Full Statehood for Delhi - Is Delhi Ready ????

Newly Elected AAP Convener Kejriwal has Demanded full statehood for Delhi, Kejriwal is right in his own right to Demand Full Statehood and Creating India's First Urban State, But with Full Statehood, Comes Additional Responsibilities and Economic Challenges, Is Delhi Ready for Full Statehood,

Delhi today is One of the Progressive City in India, and Capital Of India, and From Delhi Central Government Operates India. If Full Statehood is Granted to Delhi, No Central Government would Choose to be Governed By a State Government, and Come under state jurisdiction, it means Delhi Needs to be Bifurcated. Under No Circumstances Central Government Would Allow His Offices, Services, Judiciary, Establishments to Come Under State Government, So Fist Demerit of Statehood for Delhi would be Bifurcation, Bifurcation will not just be of Geography but also will be of Services, Including Water Supply, Prime Most Land, Law Enforcement, Power and Infrastructure,

Bifurcation of Services will Create huge liability for Delhi as State, Till Now all of Delhi's Expenses were billed to central exchequer and is supported by entire India, With Gaining Full Statehood Delhi will lose that freedom, Since States would not pay for other state expenses, Delhi today Lives of Central Government Subsidies and with Gaining Full Autonomy, it has to lose that, Is it Economically Viable for Urban State of India to Do So ??

Revenue Generation in Delhi is Done thru Various Means, including VAT, Entry Tax, Parking Charge and Property Taxes etc, With Bifurcation one of the Major Effect would be on Property Taxes and Stamp Duty, Since Central Government would Take Prime Real Estates Like Lutyens, and Also Removal of Subsidies, So even to Survive Delhi As a State will require to Increase all other Taxes Substantially,

In Addition to Survive, Other Cost like Law And Order, Infrastructure, Metro Rail Project will be funded from State Government which would need additional revenue, Delhi Being an Urban State would be Handicapped in Generation of Such Revenues,

As an Urban State Delhi is not likely destination of For Industries, and With expensive Utilities and Services, It would not be Possible for Delhi to Attract Industries in likes of Gujarat or Maharashtra, Only Skilled and Knowledge Based Service Sector or Non Pollution Industries Can Arrive in Delhi, But its too little and too late for Delhi to Attract these Industries, in the likes of NOIDA and Gurgaon,

Urban State Requires Corporate Structure of Government Like Singapore, and Hong Kong, Which is Not Possible in India, and Rather a Top Down Approach from Government to Survive and Develope, Narendra Modi Style of Governance is top Down, And Kejriwal Idea of Government is rather Opposite, where in AAP would like to Govern Delhi from Mohalla Sabhas and Gram Sabhas, Which will not Succeed In Providing an Efficient and Optimized Structural Government Requires to Run Urban State,

As Urban State Like Singapore, Delhi does not have resources to full fill its own Demand for Power and Water, which would be bought from other states, In fact National Capital Power Station is also in Uttar Pradesh,  Once These Resources Bought at Market Rates from Other States, Central Government will Not Subsidies it for Delhi, and Thus Kejriwal Would not be able to reduce Rates for Power and Deliver Free water and In turn Going Back on his Promises,

In All Demanding Full Statehood for Delhi is not Practical and Rather Used Only for Political Advantage, its now up to Center and Kejriwal to whether He Wants to Be Mayor of Delhi, Or Chief Minister of Delhi State,

But All in All, it will be Delhi would be bent with Inflation, high Land Prices and Uncertain Law and Order Environment if Granted full statehood,

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