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Correspondent

21 August 2024 at 3:50:16 pm

Arid State

Maharashtra has finally put an official number on a crisis that farmers have been experiencing for weeks. The state government has declared 265 of its 358 talukas drought-affected, activating the first stage of its drought-management framework. The scale of the distress should make this more than another seasonal relief exercise. It is a reminder that water stress is no longer an episodic crisis but a recurring governance challenge. The state received 798.2 mm of rain against a normal 970.9...

Arid State

Maharashtra has finally put an official number on a crisis that farmers have been experiencing for weeks. The state government has declared 265 of its 358 talukas drought-affected, activating the first stage of its drought-management framework. The scale of the distress should make this more than another seasonal relief exercise. It is a reminder that water stress is no longer an episodic crisis but a recurring governance challenge. The state received 798.2 mm of rain against a normal 970.9 mm between June 1 and September 26, a deficit of 18 percent. The first drought trigger is activated when rainfall falls more than 25 percent below normal and is accompanied by a prolonged dry spell of 21 days. Though the aggregate state deficit is lower than that threshold, the taluka-level assessment has established the conditions required for intervention. Except for five districts, rainfall has been deficient across the state. The government has ordered a stay on the recovery of agriculture-related loans and restructuring of crop loans, while extending concessions on electricity bills for agricultural pumps. Employment Guarantee Scheme norms are to be relaxed; food grains provided to farmers and arrangements made for drinking water and fodder. Crop-loss surveys will determine the eventual financial assistance. While these measures can cushion the shock, they cannot solve the problem. Maharashtra has lived with drought long enough for drought relief to have become an administrative routine. The more difficult question is why the state repeatedly finds itself having to mobilise the same machinery. Tankers, fodder camps, loan restructuring and employment guarantees are indispensable when the rains fail. But they are essentially the politics and economics of response, not resilience. The state has considerable experience in watershed development, farm ponds, check dams, groundwater recharge and other forms of water conservation. Yet the effectiveness of such interventions depends less on announcing them than on where they are built, whether they are maintained and whether groundwater extraction is regulated. Large-scale water-conservation works announced as part of the present relief package must therefore be judged by measurable outcomes rather than expenditure. There is a larger agricultural question. A state with highly variable rainfall cannot indefinitely expand water-intensive cropping patterns in regions whose hydrology cannot support them. Crop choices, irrigation efficiency and groundwater management have to become part of drought policy rather than being treated as separate subjects. The present declaration should consequently be viewed as both relief and warning. While the relief is urgent, the warning is structural. The state government cannot control the monsoon but it can decide how much water it captures when the rains arrive, how efficiently it uses what it stores and how resilient its farmers are when the skies fail. A drought code can declare an emergency. But only sustained water management can prevent the emergency from becoming routine.

Lateral upgrade to ailing annihilation

Writer: Mangesh Kulkarni
Mangesh Kulkarni
Sep 9, 2024
3 min read

Updated: Oct 21, 2024

Lateral upgrade to ailing annihilation

Being the first person from the private sector to be appointed as chairperson of Securities and Exchange Board of India (SEBI) as part of the government’s lateral initiative, Madhabi Puri Buch also holds the honour of being the first woman to hold the top post as capital market regulator.

But the laurels that the former private sector banker enjoyed in her earlier stint with ICICI Bank, was marred with allegations that she and her husband were having a stake in offshore entities, which were used to artificially inflate shares of Adani group companies.

Terming the allegation as `character assassination, Buch clarified that all disclosures have already been furnished and the fund in question did not invest in any securities involving the Adani group.

When it rains, it pours. This allegation was subsequently followed by Congress Party allegation that Buch had received salary and post-retirement benefits from ICICI Bank after she quit the private sector bank.

In its clarification to the stock exchanges, ICICI Bank asserted that the payments made to Buch were purely retirement benefits after her exit from the bank and they were neither salary nor employee stock options.

Prior to these allegations, Buch tenure at SEBI was all about bringing in quick reforms on operational issues by changing the format of consultation paper to bring in larger responses digitally. Being data savvy, the rationale of her decisions were democratic based on big data analysis derived from the responses received to the consultation papers.

Further she bifurcated the duties of the SEBI staff between operations and enforcement, which were done by the same persons earlier. Having worked for the private sector in the capital market domain space, Buch had a better understanding of the subject compared to officers from the administrative service in the past that reflected even in her orders as a whole-time director at SEBI before becoming the chairperson. As a whole time director at SEBI, her orders on adjudication issues were more directional to the capital market space, according to experts in the compliance space. She was also quick to revamp the old provisions of the 90s at SEBI.

Being tech and data savvy, Buch enhanced regulatory surveillance and detection of market manipulation, insider trading and fraud while also emphasizing on strengthening corporate governance by introducing stricter rules for independent directors and enhancing disclosures for related-party transactions.

To put in perspective, the annual report of the capital market regulator in the just concluded financial year revealed that the number of investigations related to insider trading jumped to 175 in 2023-24 from 85 in the preceding year while probes related to front running jumped over three times to 83 from 24 in the preceding year.

Transparency in mutual funds by implementing measures to protect retail investors along with tightening norms for initial public offers, particularly in the SME platforms were some of her other positive initiatives including confirmation of denial of any market rumours within 24 hours for the top 100 listed companies which will be extended to top 250 companies from December 1. However increased transparency and compliance with tightening regulations led to increased operational costs for the market participants and hence faced resistance from certain quarters. Born in 1966, Buch completed her primary education in Mumbai and graduated with specialization in Mathematics from Delhi and later obtained a management degree from Indian Institute of Management, Ahmedabad. In between, she got engaged to Dhawal Buch, a director at a consumer goods multinational at the age of eighteen and got married at the age of 21.

Besides ICICI Bank, Buch also worked as a lecturer at a college in England, worked at Greater Pacific Capital in Singapore and ICICI Securities as its CEO. She also worked as executive director on several private sector companies and as a consultant for New Development Bank (Brics Bank).

What now remains to be seen, is whether Buch, who survived the 26/11 terror attack when she along with her husband, was attending a meeting at Taj, be able to overcome the current ordeal. Keeping fingers crossed for the times to come.

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