Tata Steel Welcomes Jharkhand State

Jamshedpur often referred to as the commercial capital of Bihar, is pregnant with expectations. Simultaneously it has also heaved a sigh of relief. On the eve of the birth of Jharkhand - the Steel City's mood was electrifying.

With the formal inauguration of the celebration by the city SP, Mr Abdul Ghani Mir, hot-air balloons were released carrying placards such as "Welcome Jharkhand", "Jai Jharkhand", etc amid applause of the crowd. Then started the display of parades taken out by various social organisations whose main aim was to reflect a glimpse of cultural diversity of the state and its people. The 2 "moving peagantry units" which passed through route in front of the J N Tata Statue which captivated the crowd for an hour. Some of the organisations who participated in the show include Security Unit, Tata Steel, Gujarati Sanatan Samaj, Jamshedpur Public School, DBMS, Nritya Kala Kendra, Daffodils School, Graduate College, Shahid Birsa Munda Welfare Society, Muslim Library, Pranavananda College for Girls, Ramakrishna Mission, Rural and Tribal Services, Tata Steel, and hundreds of children from various Bustees of the city.

Firecrackers were burst as 52 peagantry units walked past the statue of the founder of Tata Steel, Mr J N Tata.

JHARKHAND

Districts : 18
Area : 74.677 sq km
Capital : Ranchi
Population : 2.75 crore /27.5 million (mainly scheduled castes
and tribes)
Assembly Seats; : 81
Lok Sabha Seats : 14

ASSETS:
Has 40 per cent of India's minerals, accounts for two-thirds of Bihar's current revenue collections, large industrial base - can become industrial powerhouse of the east.

ECONOMY:
The industrial and business powerhouse of Eastern India? It isn't out of the question.

The southern districts' contribution almost account for two-thirds of Bihar's revenue collections. Revenue collected in sales tax in Bihar last year came from the districts that will comprise Vananchal. Of the sum Bihar earns in royalty for the mining on its land, much of it comes from the mineral-rich South. The region accounts for 37.5 per cent of the country's known coal reserves, 90 per cent of its cooking coal deposits, 40 per cent of its copper, 22 per cent of its iron ore, 90 per cent of its mica and huge deposits of bauxite, quartz and ceramics. It also has immense forest reserves.

Jharkhand could well emerge as a powerhouse given its strong industrial base. In terms of headstart, the region has everything going for it. It has the country's largest steel plant in Bokaro, apart from Jamshedpur practically being the city of TISCO and TELCO, the two largest companies in the Tata Sons stable. Over the years, however, industrial growth in the area lost its momentum because of poor law and order, rent interference from Patna and infrastructure bottlenecks. The separation, it is believed, will help revive growth.

For Bihar it means a drain of its natural resources. What it will be left with is a fertile but flood-prone Gangetic plains and the drought-prone nine central districts. Bihar will also be left with a higher population density than the national average, and a lower tax base as the state will lose crores in sales tax and in cess and royalty on minerals. With mines and factories going to Jharkhand, jobs already scarce in Bihar will become scarcer.

The location of quality educational and research institutions like the Indian School of Mines, the prestigious Xavier Labour Relations Institute a top rate business and management school, Birla Institute of Technology and Central Mining Research Institute can also give Jharkhand a fillip. The formation of Jharkhand for Bihar will, however, enhance its share in Central taxes which is also decided on the basis of population. Of the estimated amount received as the share of Central taxes, the residual state will get a considerable share, while Vananchal will have to be content with the remaining.

Then again, with a total revenue, Vananchal may be able to rid itself of the poverty imposed on it. It could rejuvenate Ranchi, jolt a slowed Jamshedpur, and, it could even wake Calcutta up by making it the commercial and financial hub for Vananchal