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Why should so many govt departments, and corporate offices be based in or around Delhi?

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Why should so many govt departments, and corporate offices be based in or around Delhi and other state capitals

One of the early textbooks I read on Political Economy started with the scenario in Sao Paulo, a city in Brazil, in the ‘70s and ‘80s due to massive traffic jams at the major crossings on hot summer days that led people to abandon their cars to bear the severe heat – aggravating the problems. This led to road rage, fistfights, and a severe breakdown of law and order that spread to other parts of Brazil. Brazil tackled the problem with its characteristic simple out-of-the-box thinking. I think India is now a better candidate for revolution coming out of a traffic jam.

Most capital cities have a concentration of government offices crowded in as close as possible to the real and imagined corridors of power. In India apart from the ministries, departments, and agencies, we also have a concentration of PSU corporate offices in New Delhi. Many of these actually need not be here.

Let’s take a few to illustrate this. Why is the Indian Meteorological Department required to be in New Delhi? Why must the Director-General of Civil Aviation be in the capital? It goes just as well for the ITBP, CISF, SSB, BSF, ICG, ICAR, ICMR, ICHR, SAIL, BHEL, COPES and so many others who make for a crowded alphabet soup in New Delhi. Delhi also has a Delhi government, and several municipal corporations to add to the overcrowding. Then we must ask why the NDMC has to be on Sansad Marg, and the Delhi High Court sitting almost next door to the Supreme Court? Apparently, there is a magnetism that draws almost every other national organization to be as close as possible to that small part of India where the national leadership lives and works.

Shifting many of these out of New Delhi will not in any way impair their abilities. The DGCA can operate just as well from Bhiwadi, SAIL from Ranchi, IMD from Pune, BHEL from Bhopal, ITBP from Dehra Dun or Chandigarh, SSB from Lucknow, and so on. And why should the Western Air Command of the IAF be situated in the capital when it can do its job equally well from, say, Saharanpur? No other military command is located even in the NCR, let alone New Delhi. In these days of near-instant communication means, proximity is no longer a criterion for effectiveness.

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There are very few places in India where one cannot communicate with a person in another part instantly either by cellular phone, telephone, email, fax and skype on the internet. So why should everybody be cheek by jowl?

In fact shifting their head offices out of New Delhi will only unfetter them from their administrative ministries and all those little joint secretaries who lord over them. The further these departments and organizations get away from New Delhi the more effective they will get. This will curb the temptation to pass the buck upwards or sideways to the next tier next door.

Delhi is now easily the most traffic-congested city in the world. Its stop and crawl traffic is responsible most for its abysmal air quality and the millions of man-hours wasted in traffic crawls and jams. The disastrous consequences of not doing anything about the ever-worsening traffic are now well known.

But all the solutions that are proposed are to further modernize it will even bigger and faster mass transit systems, more civic amenities, and efforts entailing more construction. These attempts to make the national capital better paradoxically only attract more people to it, thereby adding to its problems rather than removing them. Then there are some things that are only possible by flattening the old. How can we ever modernize the overcrowded inner areas of many of our cities without reducing the number of people in them? Our inability to protect our rivers and air are testimony to this.

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Also Read: Mumbai tops the list of cities with big demand for office buildings

Dispersing offices across the nation will not only decongest Delhi but will also become economic drivers that will modernize smaller towns and result in far more dispersed urbanization. Imagine what a SAIL head office in Ranchi will do to decongest Lodi Road and to the economy of Jharkhand? Or the Western Air Command in Saharanpur will do to relieve traffic around Dhaula Kuan and to modernizing Saharanpur and the economy of western UP? In fact, one can make the same argument for all our major cities. The Western Naval Command can be shifted to a new location on the west coast and not only become a more effective fulcrum of India’s IOR domination but also the fulcrum of economic growth in a virgin area, say Ratnagiri.

In fact, one can make an argument for moving the state capitals out of hopelessly overcrowded cities like Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Patna, and Lucknow. This will give a much-needed impetus to the construction sector, which for the foreseeable future will be India’s main economic growth driver. Construction has the potential to absorb tens of millions of the rural workforce, and also create demand for industrial goods. Construction will create huge demands for not just steel and cement, but also for construction equipment, transit systems, infrastructure essentials like power and water distribution, and sewage treatment and disposal systems among others that will then drive the industrialization of India.

And let us not for a moment forget that India needs to create one million new jobs every month to absorb the world’s fastest-growing labour market and soon to be the world’s largest workforce. India will need to create meaningful employment for almost 800 million people by 2050. Not taking people away from agriculture will only result in rural labour oversupply but also increased fragmentation of farm holdings. Already the average farm size is just 0.63 hectares. We see overcrowding of some economic sectors as well. Retail employs over sixty million now, and the modernization of the retail sector is held back because it involves so many low-productivity jobs.

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China has decided to tackle the congestion of Beijing, now second to New Delhi in terms of air and water pollution, to shift government offices outside Beijing. Beijing’s municipal government, which employs tens of thousands, is now being relocated to a satellite town, Tongzhou. The Chinese plan is to create a gigantic urban cluster of 130 million people called Jing-Jin-Ji, with Jing being for Beijing, Jin for the port city and convention centre of Tianjin, and Ji, which is the traditional name of Hebel province, where much of this growth will take place.

Some other countries have tried to decongest their capital cities by leaving behind the economic capital and taking out the political capital. Malaysia’s political capital is located at Putrajaya, a brand new city astraddle the highway to the international airport.

The BJP in its manifesto has spoken of creating a hundred new cities to propel India’s economic and social transformation. Since coming to power it has been scaling down that vision and the government has now unveiled the “smart” cities program whereby selected towns and cities will be made “smart”, which means nothing more than providing high-speed networks there. That is if one goes by the money provided for urban development. The government clearly needs to think big again and also think of how to make dreams realities.

Many of these government departments and organizations can become anchors for new urbanization and dispersing them will only enhance their independence and effectiveness. Our government suffers from too much micro-management of the routine and often mundane and severe under the management of the macro scenario. This is as much an opportunity to save our existing cities and also to build a new and better India.

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Mohan Guruswamy
Mohan Guruswamy
Mohan Guruswamy, Chairman and Founder, Centre for Policy Alternatives and former advisor to the Finance Minister (1998), Government of India


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