q 'i.,.---;...

FOREWORD

PREFACE

CHAPTER I: MY EXPERIENCES

Section l- : Military Accounts Department'L943-47

Contents

2

.)

A

6

: IAS in Orissa,1947-64

: IAS atthe Centte, 1964-1972

: Chief SecretarY, Orissa L972-1974

: Secretary, ShiPPing & TransPort,

r974-1977

: Deputy Governor, RBI 1978-1983

9

55

79

85

101

tt1rz5

Q5

t43

r47

t49

185

7 : Post-retirement, 1983 onwards

CHAPTER II : SIVARAMAN'S EXAMPLE

Section 1 : Career in ICS, 1934-1970

2 : Post-retirement, 1971 onwards

CHAPTERIII: OURTIMES

Section 1 : Orissa

2 : New Delhi, l-964 onwards

CHAPTER IV: MY

Section 1,

L

J

/l

5

t

REFLECTIONS

Ad ministratir,le Ethics

Administratirie Methods

Administrative Structures

Administrative Leadership

Administratois & Policy-making

209

2TT

223

233

265

?43

Foreword

The civil service system of India at the time of tndian inde-

pendence was uniu"rsaily acclaimed for its quality' Behind it lay an

ancient tradition with the competitive examination added by the

Bri.tish. There is little doubt that ihe relatively smooth transition from

British imperial rule to independent India was made greatly.possible

by the civiiservice system especially the I'C'S' - the Indian Civil Service'

The last of the I.C.S. Mr' Nirmal Mukarji retired as Cabinet

Secretary in 1980. Coincidentally Mr' Mukarji currently works at the

Centr" fo, Policy Research as a Honorary Visiting Professor'

The Indian Administrative Service was started as the successor

service to the ICS after independence' The first batch ofdirect recruits

i"i""Jit 1948. There was thus an interface for a considerable period

b"t*e"n the ICS and the IAS before the ICS got phased out'

Mr. M. Ramakrishnayya who distinguished himself as an able IAS

official worked closely with Mr' B' Sivaraman' one of the ablest tCS

official India ever produced' The CPR has already published Mr'

Siuuru.un', autobiography. The present autobiography is a com-

pariion volume in which Mr. Ramakrishnayya has dwclt at length of the

nature of the interaction and how the transitionwas made from the ICS

to the lAS.

The volume would be of considerable use to the yorrnger genera-tion of civil servanrs especiallyin rhe IAS. It will ah;;Joi"oo.la".*f"use to students oflndian administration hnd its post_coloniat transitiond^J ^.,^r,-ri -and evolution.

Centre for Policy ResearchNewDelhi

June 1992

VJA' PAI PANAI\DIKERDirector

Preface

Being of the first batch of IAS, created in 1947 in place of ICS, Ihad many occasions to observe and interact with the seniors of the

latter service. Of them, Mr. B. Sivaraman of the Orissa cadre exercised

a great influence on me. This book is an attempt to bring on record my

experiences in the practice of public administration, highlighting the

lessons I learnt from Mr. Sivaraman and the interactions with other

personalities including ICS officers. A chapter has been added on the

political environment in which Mr. Sivaraman and I worked, so that

the readers will have a proper perspective. The book closes with my

reflections on some important aspects of public administration such as

ethics, methods, structures, leadership and policy-making. These

thoughts are offered in the hope that they will be of some use to the

succeeding generations of administrators.

A word on the origin of the book. In May 1989, I met Mr.

Sivaraman in Madras with a view to persuade him to record his

reminiscences. When I found him reluctant, I proposed that I would

attempt a book on his life and times, if he agreed to help by recalling

important past events and his experiences. To my joy, he agreed.

Later, after a month or two, he informed me that on reconsideration,

he changed his mind and had begun to work ou his own book. It was

my turn to help him in verifying some facts and details with reference

to official records, etc. While this joint venture resulted in the publi-

cation of his book, Bittet Sweet in 1991by Ashish Publishing Co., New

Delhi, I allowed myself to be persuaded by Mr. Sivaraman to pe rsist

While writing this book, I have sgught and obtained the assistanceof friends and others who have had bpportunities of interacting withme and Mr Sivaraman. Wherever po$sible, I have acknowledged theirhelp in the text itself. Here I shall record my appreciation of theassistance rendered by the Government of Orissa in tracing some oldrecords and supplying copies of official documents. I am grateful toR.K. Misra, chief secretary and his colleagues for the courtesy andconsideration shown to me during rhy visit to Bhubaneswar in May1990. J.S. Sarma, who as economic adviser in agriculture ministry andsecretary to the National Commissipn on Agriculture observed MrSivaraman closely deserves my thanks for putting me in touch withsome foreign admirers of Mr Sivaranlan. I am particularly thankful toDr S.K. Rau who read the manuscript and offered useful suggestions.

with my proposed book with anoutcome.

conte{.

altered scope. This book is the

M. Ramakrishnalrya

To Dr. V.A. Pai Panandiker and the Centre for Policy Research Iowe special thanks for eKending fina{rcial support for this venture andfor making available other services to see the book through the press.Mr R. Venkateswararao, my stenogfapher deserves mention in this

CHAPTER.I

MY EXPERIENCES

Military Accounts DePartmentL943-47

I became an administrator not because I studied public ad-

ministration in college, or perceived ahy flair for it in me after gradua-

tion. The real reason was that I was attracted by the prestige, prospects

and above all the security offered by the Indian Civil Service. I set my

heart on the ICS after passing the B.A. (Hons) examination of the

Madras University in 1940, in first class and with the second rank' For

a poor boy, orphaned at the tender age of seven and educdted through

scholarships and small charitable donations, but alerted early to a

bright future repeatedly by a loving guardian uncle and other well-

wishers, it did not appear to be overly ambitious. However' my

progress towards the goal was neither smooth nor straight.

My first attempt to enter ICS through the All- India competitive

examination of January L942 failed' My rank being 32nd, I was con-

soled by iny well-wishers that mine was a good performance for a first

attempt and that I should persevere. But I did not appear at the next

examination of January L943, as by then the government had an-

nounced that 50 per cbnt ofthe vacancies were reserved for war service

candidates and that not more than one person would be appointed

from anong the exarninees of 1943. I felt it was not worth the effort

and turned my attention to the other competitive examination for entry

to central services like Indian Audit and Accounts Service, Military

Accgunts Department, etc. I appeaied at the examination held inMadfas in December 1942. Blt succ(ss eluded me. My rank was 18

and the recruitment stopped at the nunfber 17, due again to a reductionin the vacancies on account of war service reservation.

Fortunately for me, the need for Sfoung officers in the expandingwar departments brought me two offert: that of a civil gazetted offrcerin the ordinance department and a pi$bationary officer of the Emer-gency Cadre of the Superior Service of the Military Accounts Depart-ment. As the latter was similar to the one for which I aspired at thecompetitive examination, I accepted it and joined as a probationer inMeerut on JuJy'23,1943. After six months of training, I was posted tothe office of Field Controller of Milltary Accounts, Pune. There Iserved till March 1947, when I was appointed to the A1l India Ad-ministrative Service, which replaced the ICS.

The All India ddministrative Se4vice (later reaamed IAS) wasstarted withwar service candidates who were found fit for appointmentto the reserved vacancies in the ICS. I was one of them and therebyhqngs a tale worth recording. ln l9M, some colleagues and I maderepresentations to the Military Accountant General (MAG), request-ing that our service in the Emergency Cadre should be declared as warservice and thus made eligible for qonsideration for the reservedvacancies to be frlled after the war. The justification was that we wereon contract to serve anywhere in Indi4 and Burma, the latter havingbeen declared a war theatre. This request was turned down. Butsometime in January 1946, I came to know that a colleague of minecalled Martin, who by virtue of a higher rank in the 1942 examinationwas appointed against the regular vacancies in the Superior Service,had sent an application to the Federal Public Service Commission(FPSC), for consideration against a war service vacancy in the ICS. Iapproached him for clariffcation as to how his service could becategorised as war service in face of MAG's reply referred to above.He showed me, somewhat reluctantly, the letter he had received fromthe FPSC containing the single sentedce: "Temporary service in theMilitary Accounts Department is covered by the term war service."Although I' took note of the reference number of the lettsr and col-lected the application form from a friend, I was not convinced of thevalidity of that letter and the competence of the FPSC to give such a

Mititary Accounts Department, 1943'47

ruling. Everyone knew that it was the privilege of government in the

;;#t"di-"nt to make such declarations' This apart' the iast date

fo, ,uUtoirti"g upplications against war service vacancies,was already

ou.r. t *u, no't .*e if any good would come from an application frled

at that stage. When I conveyed this dilemma to my 18-year-old wife'

ri" *t"Jr"""cently whetier there was any harm if I applied' I

,r"r*"ify ."pfi"d that there would be no harm although reason indi-

cated that it wouldbe a waste of time. Thereupon, she in her own loving

*uy tot""a me to apply. Perhaps, her faith i" Tyj::tTl*as stronger

;h?t;;;*". I had to swallow'my pride as an infallible interpreter of

,ot"r.lurt U"fore this event, I hadwon the appreciation of my superiors

for my stand in a controversy with the Accountant-General' Bombay

o"n ,fr" in,"rpr"tation of a ruie relating to the Indian Medical Service'

ifr" -"ttp,t"rf"r and Auditor-General upheld my viel' My pride in

my intafect was always very high, almost bordering on insolence' My

*if" b.ooght me down to earth and made me aware of forces beyond

the ken of man.

It was indeed providential that Pearlby, the Military Accountant-

Ceneral, who had earlier turned down our petition for recognition of

;;;* as war service, held back Martin's application' as he was a

iJgufu, uppoiotee and forwarded mine with adverse comments to the

effectthathewasnotawareoftheinclusionoftemporaryserviceinii" *fft".y accounts department as war service' On receipt of the

uoofi"utioo, FPSC called me to show cause why it should not be

ili'*i.J""tl" ground that it was too late' To this' I replied' tongue-

i"l"i""t, ,ft" f .ltumitted the application within six months of the date

of the Commission's letter declaring the eligibility of my service as war

."J"", ti" months being the prescribed time limit in the original

sovernment order inrespect ofanother condition of eligibility' viz.' age'

ilJai",fy, ,ft" aommission's office was satisfied with my explanation-

and i was called to attend the selection prc'cedures' In the middle of

iSqA,rh.temporary clerical staff of the military accounts department

Jro"t *o.t tirrouihout the country in support of their demand for

i""ogrritiot of thelh service as war service' After some hesitation'

;;;;;;" accepted the demand and issued the necessary notifica-

iion. Thus, when I appearedbefore the Commission some months later

ior inl nnuf int"rview, I thought I was in a fairly comfortable position'

Two Administraton : trnteraction Bettveen ICS and IAS

interview would fall on a Thursday, myrntervrew would tall on a Thursday, my lircky day. Thursday it was whenthe Commission grilled me as I have d0scribed. The palmist,s oredic_The palmist's predic-

But, by then, the Commission,seems qo have found out that acceptingmy application was a mistake. The c$airman confronted me with thequestion as to how I could apply in Jaduary, as a war service candidate,when the notification was issued in August or so. I cited theCommission's letter. He countered by saying that the letter was issuedby mistake and I should know that the ltome Ministry alone could makesuch a declaration. He blamed it on tlte temporary staff in his office. Iwas taken aback, but with some presqnce of mind, said that I refusedto believe that FPSC could commit mi]stakes and added that it was rrvlot too in Poona to carry on the war effort with the help of te-oor#staff and that all of us did our best in the circumstan""r. Th"."upoo.the Commission changed the subject and asked why I did not appi fo;services other than the ICS. I replied that obviously I was not irterestedin them and that I was confident of getting selected for the ICS.However, it was obvious to me that the Commission could quietlycorrect the mistake byjust not selecting me. providence seems to haveintervened again at that stage. Eventqally, my name appeared in thelist of successful candidates.

Although I applied in accordance with my wife's advice, I was notsure of success. In that mood, I consulted a palmist called Sharma. anupper division clerk in the FCMA dffice, whose predictions wereknown to have come true in the case of some friendi. He assured meof success and added that the result would be published on November20,1946. Duly impressed with his reqdtngs of my past, such as the realdate of my birth' and a silly mistakez in one of the papers of the ICSexamination of L942, I followed his advice to eichew cereals onThursdays and salt on the day of the interview. I was assured that mv

tion as regards the date of publication of the resulf also came true.Although these events strengthened my faith in providence and pal_mistry, I did not like the idea of knowing the future in advance, exceptwhen placed in a real dilemma.

I must add that when I decided to apply as a war service candidateto please-nyrvife, I told some colleagues in pune to act likewise. Butthey did not. Perhaps their wives advised them differently. I was theonly one in the military accounts depadurent to apply and jet selected.

Mililary Accounts Department, 194147

One of.my,fiiends used to say jokingly that I had hitched rnywagon to

a star,,,Equal$ hurro:qustry, he describgd me .as a "gate crasher", when

news of n'y succoss was,out. Two othe-rs reacted:differently. One wrote

a letter. to the E ditor, Bombay Chronrcle ingrqotost,eg*i.'st a 'ikite-flier"

being selected. Another sent a represeatation to govemment, request-

ing that either'a fresh opportunity be given to the;lites of me to apply

and be selected or rry selection should be caacelled' I later'learnt that

all the facts relating to my application and selection had to be placed

before Sardar Patel, the Home Minister, for final orders.in March 1947'

He ruled that it was not practical to allow others to apply at that stage

and reconstitute the special selection boards and that there was no case

for cancellation of my selection as Independent India needed the

servi€es of many young officers like me. It is interesting to note how

diverse were the reactions of ftiends and colleagues.

Although my selection was notified on November 20, 1946, as

predicted by the palmist, the letter, appointing rne to the All India

Administrative Service and allotting me to the Orissa cadre, arrived

towards the end of February 1947. The uncertainty led my wife and

mother-in-iaw to invoke divine intervention by promising my first

monthts salary to god Venkateswara and a pilgrimage to his shrine at

Tirupati. The delay, we later knew, was due to the decision of the

Inteiim Government headed by Pandit Nehu to close down the ICS

and constitute a new service in its place. This required consultation

with provincial governments. Bengal and Punjab, which were then

ruled:by Muslim League governments, did not aglee to the creation of

a rrew All-India service. Some of the Congess-ruled provinces were

also.not very enthusiastic in their support. It was entirely due to the

foresight, administrative wisdom, tact and persuasive skill of Sardar

Patel, the central Home Minister that a consensus could be hammered

out at the ionference held at Nagpur in December 1'946. It was decided

that the ploposed new service should be created, leaving out of its

scope the dissenting provinces under the control of the Muslim

League. Accordingly. the war service candidates selected for the ICS

frorn the participating provinces only were appointed to the All India

Administrative Service and directed to undergo training in Metcalfe

House, Dclhi.

Between ICS and IAS

Notes :1. I was born on May 2, I9?Lblt my uncle got my date of

birth recorded as February 2, on the advice of his fellow-teaqhers when I was in the fifth forrh. They feared that I would bebarred from appearing for the SSLC examination in March 1935if my age was allowed to remain lesb than fourteen. They thoughtthat the incumbent District Educational Officer. known to be astrict man, would not be persuade{ to grant condonation underhis special power. Whatever migdt have been the reasons thatprompted my uncle to back- date mf birth, I decided to live by thislie throughout my career. When ifr 1972, Government .of Indiagave an opportunity to its officers tO change their recorded datesof birth by producing fresh evidence, I did not fall to the tempta-tion, because I had great respect for my uncle under whose lovingcare and expert guidance I glew up, having lost my mother at fiveand my father at seven. I also belifved in the adage, "God doeseverything for our own good". In fact, my recorded date of birthmade me senior to V.S. Mathews of the same year of allotment, inthe Orissa cadre of IAS and proved iuseful when the latter with hispolitical clout tried to claim promotion as Commissioner beforeme in 1960.

The mistake was to answer all thie ten questions when I wasexpected to answer six only, thereby diluting the quality of everyanswer and earning a low mark for Oach of them.

)

IAS in Orissa, L947't964

I reported to the AIAS Training School on March 20, 1'947' Soon

I found, that barring a few, all my colleagues had seen active service'

Our joy at getting the appointments was, however, tempered by the

di.appointtiettt at the lower scales of pay fixed for the new service'

So-e gave exp.ession to the injustice and invidiousness implicit in the

different levels of remuneration for the same work and its possible

deleterious effect on the morale of the members of AIAS, who would

have to work with ICS officers who had stayed on' Some others sensed

the mood of the time and understood the compulsions of the leaders

ofthe freedom movement. The latter advised not to make this an issue'

This view finally prevailed' All of us rejoiced at the vista of oppor-

' tunities and chailenges that had opened up with Independence' Some

of us (and I was oni of them) had the idealistic streak and could ask

rhetorically, who was more noble, he who did more work for less pay

or he who iook more pay for the same work' In retrospect, however' Iwould permit myself ihe thought that the lower emoluments and the

unconscionable delay in making corrections for inflation were respon-

sible, at least in part, for the fall in standards that the old mandarins of

India and otheri often lament. I know from my experience what a hard

struggle it was for honest officers to stand firm against the temptations

uod!."rsu."s of the corrupt and the powerful and how the idealistic

streak alorre sustained them in the struggle' I was lucky in having a wife

and children who respected my values and refrained from making

10 Two Adntinistrators : Intaruction Between ICS and IAS

unreasonable demands on me. Itwasrecognised that a good administrationmade some improvements in pay and

in the eighties that the nationan appropriate price tag and

on,

I value my days in the Training Sch for the knowledge of civiland criminal law I gained and the ity I got for mixing withofficers from different provinces and ith different backsxounds.Urdu, which was at first compulsory for was dropped soon after theannouncement ofPartition, as parJ ofthe ion ofindependence.I remember heaving a sigh of relief, with others, at the droppingof Urdu. The riots that broke out in i and Puniab in the wake ofPartition put an abrupt end to our traini4g schedule. We were draftedfor special duty as magistrates. After ave;y short stint at the Paharganjpolice station in Delhi, I was posted, alorig with four others at Kuruk-shetra, under the overall supervision cif the deputy commissioner,Karnal (East Punjab). To receive the large influx of refugees daily,provide rations and shelter to them and maintain law and order wereourtasks. The district administration was under great strain and couldcome to our assistance only intermittently. The resources at our com-mand were grossly inadequate and we had to improvise. As we had noformal designation we began to call ourselves Assistant Refugee Com-missioners. At the instance of our Principal, M.J. Desai, who was alsoadditional secretary in the home ministry we used to send fortnightlyreports. I was in charge of writing them. We made use of these reportsto convey frankly our difficulties, the problems ofrefugees, our effortsat improvisation and the need for a massive programme and betteradministrative arrangements. Desai sharedour reportswiththecentralMinistry of Refugees and Rehabilitation. Minister K.C. Niyogi andSecretary Kripalani took our observatidns seriously, visited Kuruk-shetra, saw for themselves the'dark spots'hitherto played downby thedcputy commissioner, Karnal but highlighted by us, and initiatedremedial measures immediately. As part of our duties, we had to faceiiowds eager for shelter and.impatient at the slow pace of the erectionof tents. Persuasion and public relations were the only instruments atour disposal. One of us, who had a sten gun and loved to display it, wasmade to hide it, lest it should lead to provocation. We had to contendagainst human frailties such as petty thefb and false claims for woollenblanke ts. We dispensed quick justice for petty crimes. To ensure that

IAS in Oissa" 1947-1964

woollen blankets would go to the needy we ventured out at night to

identify the really deserving persons and gave them slips of entitlement.

On one occasion, one of my colleagues was assaulted due to a

misunderstanding of his mission. We also found some refugees dis-

simulating in anticipation of our visits. Indeed, it was not easy to do

good to the deserving. These early experiences of coping with difficultsituations without adequate resources and back-up support, through

impiovisation and frank reporting to higher echelons, taught me useful

l-essons for the future. I leatnt that to play down difficulties in the fieldand to highlight a few good points for the sake of presenting a good

face for the occasion, would be very wrong and indeed unprofessional.

I began to attach great importance to the fortnightly report as a means

of communication. In later years, I tried to introduce this kind ofreporting wherever it did not exist. I also encouraged field officers towrite frankly without any inhibitions. The last such occasion was in the

Reserv€ Bank oflndia, where there was no previous practice ofbranchmanagers located at state capitals communicating with headquarters

about their problems and the economic situation.

I remembered Kurukshetra for a long time as the heart-rending

scenes I saw used to haunt me even in my dreams. The words 'nikl<e

nikke baclrche' used to resound in my ears for months, even after I leftKurukshetra in December 1.947. Further, it was here that I met DrUshaben, the daughter of K.M. Munshi, a famous Congressleader. She

came to do social work and fell in love with K.S" Raghupati, one of my

colleagues. They married some years later. Raghupati was also a

member of the Orissa cadre, and over the years I developed a great

regard for Ushaben. To her I owe tle opportunity of meeting Mahatma

Gandhi in Birla House, New Delhi, just before leaving for Orissa. Thefew moments I spent with him and his blessings have always remained

fresh in my memory.

In the middle of Dec:mber 1-947, I was relieved of the special dutyin Punjab and was ordered to join as assistant collector, Cuttack inOrissa for field training. The collector, B. Mukherji, was an ICS officer.My colleagues and I hoped to benefit from his guidance and make upfor the time lost in Punjab. But the collector made it clear at the very

first meeting that he had no time for us and that we should pick up theropes from his subordinates. This was completely contrary to what we

12

were told at Metcalfe House to expect. we had to train ourselves,We were all put up at the Circuit Hocollectorate in a buggy drawn by two

safety of the nets. After a few days I wasperhaps was that the government was in

and went to and from theThe roads were in an awful

to Puri. The reasonstate. Droves of mosquitoes attacked us night till we retreated to the

of rooms for their visitingguests. T ife at Puri was better as there wqfind a house and bring my family.

less mosquitoes and I could

As regards training I made good in Puri. Although thedistrict magistrate P. K. Das, a deputy collector, did not

with him personally, I wasprovide many opportunities for igiven criminal cases to try and a revenue petition for local enquiry. Thelatter, I remem[ier had something to do $ith the Orissa Private ForestsAct. Panchanan Tripathy, a deputysecretary tq the chief minister and

who was later posted as

to IAS, taught me theintricacies of treasury work. B.K. Patro, the district and sessions judgewho was elevated to the High Court in hue course let me watch theproceedings in a sessions case and helped me complete the mandatorycase record. I used the spare time available for studying the CriminalProcedure Code, the Indian Penal CodF and various laws bearing onrevenue administration. This was in preparation for the departmentalexamination and the imminent postidg as subdivisional officer. Imastered some of the fine points of crirhinal law as was evident fromthe reaction of R.L. Narasimhan, the examiner to an answer of mine inthe viva voce. He enquired if I had a law desree.

I recollect an incident in connection with a function in the Puricollege. I was invited to preside ovor a lecture to be given bySriramachandia Dash, one of the staff members. He was known as anorator and a stormy petrel. Speaking on the social and politicalproblems of Orissa, he made some astoutrding statements. He referredto the recent assasination of Mahatma Gandhi and warned that theleaders of Orissa might meet with a similar fate, if they did not heedthe signs of the time. He satirically referred to me as 'the officialbackground' when I tried to caution hfm against straying from thesubject. In my concluding remarks, I hadlto counter his arguments, putthe various issues in proper perspective dnd advise the students againstadopting extremist attitudes. At that tlime, I was not aware of his

IAS in Oissa, 1947-1964 1J

unsavoury associations. After the rneeting, I was surprised when the

college siaff formed a ring round me to escort me safely to my home'

A fei days later, the government called for a report on the meeting, as

in the meantime, Dash had misbehaved with his colleagues and created

a furore on some othet matter, of which I donlt remember the details

now. I learnt, after some months, that he was transferred to Koraput

district on the basis of my report. Dash lived to become the head of the

department of politics ut th" Utk"l University. He lost the chance of

being appointei to the IAS, though selected in the interview held under

the s'pecial recruitment scheme, due to some indiscretion' I did not

have much to do with him during the rest of my career in Orissa'

My first posting was as subdivisional officer, Khurda, in the Puri

district. I was there for about six months only' The periodwas unevent-

ful, except for the visit of Governor Asaf Ali who seemed to have

carried igood impression of rne and conveyed it to the chief minister'

Here it was that I became confident of disposing of seemingly difficult

cases under Section 107 and 145 Cr. P.C' and large numbers of

mutation cases on the revenue side. I recollect two instances' In one

case under Section 145 Cr. P.C., the evidence was such that the

cbnclusion was not apparent and the judgement had to be rewritten

more than once. I was gratified when on the reading of the order in

open court, the winning party broke out in spontaneous jubilation and

confirmed my conclusion' I had a habit of keeping the final order

unwritten till ihe last hour or so, to prevent it being leaked and to thwart

the widely rumoured tendency of a member of the bar who claimed he

could infiuence the magistrate and made money on that basis'

I recall another criminal case in which I committed Gangadhar

Paikaray, a prominent communist and his colleagues to the Sessions

Cou.t or, "hu.g",

of arson and rioting during a tenants' agitation' I

made it clear in the order that I was doing so, only because it was the

prerogative of the Sessions Judge to evaluate the recorded evidence'

ihe niagistrate's duty endedwith recording it and the finding that there

was a pr-ima facie case. Although my sympathy for the tenants and their

communist champions was transparent, I could not help committing

them in view of the le$al position. This earned me the friendship of

Gangadharbabu. When I compare this with the.reactions of a more

"*ul6d co--rr.rist leader of the seventies to similar well- meaning and

14 Two Administraton : Interaction Bitween ICS and IAS

correct actions of mine, I feel sad atand discrimination among the leftists.Iater.

loss of the sense of proprietyore about that exalted leader

. . By the time I took charge of the sub{ivision, the satbarakai system

had been abolished. Sarbarakars were farmers of revenue. In theirplace, government servants with the title of Naib Tahsildars wereappointed for a group of villages to co ect the land revenue directlyfrom the tenants and maintain land pecords. Due to transitionalproblemg a large nurnber of mutation had been pending, torY----o, rvthe great inconvenience of the tenants. llhe promulgation of TenantsRelief Act accentuated this problem. Fcjrr, under thJAct, the share ofbhagchasis or sharecroppers was raised ito 3/5 from U2 and the enfor-cement of this provision led to a lot of resi and unrest. It thus

lec_ame very important for all concernod to establish beyond doubt

their rights to tlie land records. Mncri nf tt . .r....*^--their rights to tlie land records. Most of the sharecroppers werecultivating on the basis of oral leases. Those in long term possessionbut on oral lease as well as those with written leases wlre keen to recordtheir rights. Similarly, tenants of landlofds were also anxious to gettheir rights regularised through entries in revenue records. Transfersthrough inheritance or sales had also to be recorded. The proceedingswere referred to as mutation cases in revenue law. I undertook a specilldrive to dispose of about a thousand pending cases through campcourts. To do so I had to tour the subdivision extensively. I realised howeasy and satisfuing it was to do justice to the people by visiting thevillages, and hearing the affected parties direcily in t"ai of throughtouts and mukhtiars or petty legal practigners. I recall a long_pendingmutation, case, in which my homework tolil me that the thumb impres-sion on the crucial document was forged and the intricate argumentsof law of no consequence. The lawyer would not concede. The docu-ment was sent to the handwriting expert, who confirmed my layopinion, whereupon I took criminal action on the party for using theforged document. In another revenue case involvini s,rLssion r-ightsunder hindu law, two senior lawyers from Cuttack apea.ed io ory gi-pcourt. In the-beginning, they seemed to be sceptical about my under_standing of the law and looked at me, a vbry ju;ior offrcer of ihe IAS,in a rather indulgent xnd sondssssa.ting -uoo"r. After the hearing,

IAS in Oissa" 1947-1964

however, they stayed to convey their appreciation and we became

friends. One of them, Harihar Mahapatra, became a High CourtJudge.

As this rvas my first contact with people in different walks of life,

I was keen on establishiug a reputation for fair dealing and incorrup-

i tibility. I went to great lengths in this pursuit. In the first two months, Ihad no car of my own. I travelled by bus, refixing to use cars offered

by the ricliresidents ofKhurda.I soonbought a second-hand Chewolet

of 1942 vintage at Calcutta for Rs 5,500. The normal car advance

sanctioned by government was not sufficient' I had to supplement it by

selling a small piece of agricultural land I had inherited frommyfather.This was my only patrimony. To avoid embarrassing situations, Icautioned my wife not to accept anything in my absence, without my

permission. As a result, she did not touch the bag of vegetables I sent

home during one of my tours. I had bought the vegetables as they were

cheaper than in Khurda, but by the time I returned home they hadperishe d. Similarly, wHen during Diwlrli, the mer.chants of Khurda tov/n

brought me baskets of fruits and packets of sweets, I accepted a few

only in token of my appreciation and returned the rest, to their great

surprise. In doing so, I was rteither nervous nor defensive. I'wasdetermined to be correct, even at the risk of being labelled a faddist.

It was in the same bold spirit that I turned down the application of the

' wife of the collector, P.K. Das for a plot near the railway station inBubaneswar, which was expected to appreciate several times in value

shortly as a result of the decision to locate the new capital of Orissa inthe adjacent forest area. Such caution was more important later when

other and more sophisticated peddlers of corruption carne my way.

Six months later, in November 1.948, I was relieved by G.C.L.

Joneja, to become additional under secretary in the Supply and. Transport department. Although a war service eandidate gnd my

seirior by two years, he was not with me in the Training School. As he

was from the Punjab, his appointment had to wait till,after Inde-pendence and Partition. I found him somewhat boisterous and over-

confident. Although innocent like me of active service, he chose togreet me at our first meeting, in the army slang as 'old boy'. Havingdiscovered the size of my family, he a father of two girls and a son

proceeded to lecture me, a father of four girls, about family planning.

I replied with the adage, he laughs best who laughs last. I was already

15

aware that at least some of mV were tributes to the efficacyand availabilitv of the familv devices of the time. After eiehtmonths or so, I met him as collector, $olangir and had the pleasure ofcongratulating him on the imminend arrival of his fourth child. Heconfessed that the die was cast on thb very night of his entry into thesubdivisional offi cer's bunsalow at The ironv was that he wenton scoring in this game, While my remained four (with the lossof a daughter in 1949 and the birth of A son in 1950) his rose to five. Mywife and I had suffered great grief in 1949 when our fourth daughterdied of liver disease. Her birth hadand her death coincided with my pr

my appointment to IAS

Two Adrninistrators : Interaction Between ICS and IAS

to the senior scale. I haveoften blamed mvself for mv in the early days ofher disease,and my failure, due to financial to send her to the liverspecialist in Madras who had earlier oured my eldest daughter.

At first, I was reluctant to join dt Cuttack, as I was not sure ofgetting suitable accommodation immediately. But Sivaraman brokedown my hesitation by promising me ag early allotment of a Wadia hut(the name given to asbestos-roofed holses designed by ChiefEngineerWadia) and by offering to put me up tlll then. He did not bat an eyelidwhen I informed him that my family consisted of my wife, four youngchildren and a dog. When I actually arrived by train one afternoon, heshowed me the extraordinary courtesy. of sending his car to the stationand personally receiving us at his houge. We stayed with him for morethan two weeks. He would not let me shift till he had satisfied himselfthat the allotted house was suitable and essential items like coal hadbeen stored. We were treated most affectionately by him and his wife.I benefited a lot from our informal conversations. Even after we shiftedto our house, we used to call on him bn Sundays and sometimes stayfor lunch. There were occasions when I made bold to borrow smallamounts from him and his response vrfas always positive and friendly.Thus were the foundations laid for a lasting personal friendship be-tween the two families. In later years; it became customary for us toshare the evening meal whenever one of us was on a visit to the other'stown. After the meal we would talk late into the night, exchanging ideasand experiences.

At that time, there were four IC$ officers in Orissa.The senior-most was Nilamani Senapati, the revBnue commissioner. The pride

MS in Oissq 1947-1964

of the Oriyas, he was a perfect gentleman, who, aided by his amiable

daughter Dolly, kept open house. Hewas not known to be very effective

in administration, although correct and kind-hearted in his dealings

with the people as well as colleagues. The second in order was B.C'

Mukherjee, the chief secretary who despite his romantic image and

attitude ofaloofness was considered an able officer and sound adviser'

The third was R.L. Narasimhan" the law secretary, who became ajudge

of the Orissa High Court and went on to preside over the Bihar High

Court. Despite his air of bonhomie he was quite conscious of being a

member of the ICS and was inclined to treat IAS officers as less than

equal. On one occasion, when he talked decisively about the procedure

through which war service candidates had been selected, I had to retort

that the procedure was devised to select leaders of men only as there

was no provision to transfer some of the selectees to the judicial side,

if found wanting. Sivaraman was the fourth. He enjoyed a high reputa-

tion for his competence in civil supplies administration, his lack of

snobbery and his unassuming ways. V. Ramanathan was the fifth and

v/as holding charge of the development department. Known to be a

good ma4 he kept a low profile. B.Mukherjee was the juniormost' I

have noted that as collector, Cuttack, he took no interest in the

youngsters of the IAS. There was a big gap between B. Mukherjee and

ihe siniormost IAS officer, A.K. Barren of L940, not to speak of me,

whose year of allotment was 1944. Soon, a lar$e number of senior

deputy collectors were tobe promoted to the IAS and fitted in between

A.k. Barren and G.C.L. Joneja of 1-942' Meanwhile, I was the only

IAS officer in the secretariat at Cuttack. Against this background, it is

not surprising that close contact with Sivaraman in office and outside

had a profound effect on me

Although Sivararnan left the department on promotion.about six

months after I joined, he became my friend' philosopher and guide'

S aying that knowledge was power, he encouraged me to study through-

ty itre sublects entrusted to my care. Thus it was that I came to study

company law so as to be able to dr.aft the Memorandum and Articles

of Association of the Orissa Road Transport Company (ORTC)'

Sivaraman would go through the drafts I prepared and make useful

comments. Later, I turned my attention to constitutional law, when Ihad to face a writ in the High Court challenging nationalisation of

18 Tw:-',4&itittistraton : lnteraction Beween ICS and IAS

passeqgqr.transpclttby road. The leghl knowledge I acquired so earlyiir my career and the habit of studying carefully new subjects allottedto mc stood mc i.ngood stead in later fears when I cane to face.biggerresponsibilities. I believe that one of the reasons in recent years for thederisive desciiption of IAS officers as mere generalists is the failure ofseveral of 'them to appreciate and act on the dictum that knowledge ispower.

Mahatab was the chief minister at that time. I did not have muchcontact with hirrr as I was only an under secretary in a departmentuqder the control of another minister, Sadashiv Tripathy. One oc-casion, hgwever, has remained fresh,in rny memory. One Himmat-singhka was introduced to me by the chief minister personally, asking

:m€ to olerE, his proposal e4peditiously, Himmatsinghkh, an associatiof tha .Birlas and the sole agent fo the supply of 5alt t6 Assam, wanteda sirqilai monopolyrin Orissa..He tried to influence me with the usual.techniques of a .trusinessman calling at my house with prcsents andoffering to look after rne during my visits to Calcutta. I rebuffed hisapp roaches and recommended not odly against the monopoly but alsoagainst choosing him for the agency. On receipt of my strong note,Mahatab sent for me. He appeared anmyed and tried to bully me onone point or another. But when I stood my ground and explained theadverse political repercussions of the induction of a non-Oriya intosuch a sensitive are4 he accepted my apvice and dropped the proposal.His method made an impression on my young and inexperienced mindand strengthened my resolve to render advice without fear or favour.

When I joined the department, Sivaraman told me that my maintasks were to streamline the operations of the state transport servicewith headquarters at Bolangir and to nationalise the passenger roadtransport system of the coastal dislricts in accordance with the speciallaw passed by the Orissa Assembly in 1946, My accounts backgroundseems to have led to my selection for thejob. Nabakrishna Chaudhuri,who succeeded Mahatab in 1950, was the person mainly responsiblefor the law during his previous tenur@ as transport minister. Even asCM, he took a lot of interest in this matter. I therefore came in closecontact with him and he stood by me despite insinuations by vestedinterests and aggrieved persons. Somc of them depicte{ me as a wilyAndhra out to destroy Oriya enterprise. The reference was to the Oriya

IAS in Oissa. 1947-19&

private transport operators of Ganjam district which had a substantial

Telugu speaking population. In a press confereace I was asked how

many Telugus had been employed. At that time, I could fend off the

question by taking a high moral tone that one should be ashamed toask such a question, as it would inevitably lead to asking what was the

caste composition, particularly the nurnber of Karans and Brahmins.

Luckily, my interlocutors became silent. I was, of course, careftrl tomaintain a proper balance in recruitment. With the support of my

minister Tripathy and the CM, as well as my own hard work and tactftrlbehaviour, I succeeded in winning the confidence of all concerned. Iwas particularly gratffied at the confidence placed in me by R.N. Panda

and Hyder Sheriff, the two prominent displaced operators of Ganjam,

in regard to the valuation of the vehicles and properties taken over bythe government.

The Act of 19t16 referred to above envisaged the establishment ofa joint stock company in collaboiation with the trndian Railways in the

interest of rail-road coordination. So, the Orissa Road TransportCompany was formed. The state government and the South Eastern

Railway together held 51 percent of the shares. The displacedoperators were also allotted shares as well as seats on the board ofdirectors. Later, at the instance of the socialis!-lM, employees toowere allotted shares. Almost single-handed, I framed the rules underthe Act, drafted the Articles of Associaticn of the company, worked

out the details, built up the necessary infrastructure, reorganised the

routes and services and facilitated a smooth transition from private topublic operation. Promoted as deputy secretary in March L949, I was

made chairman of the company. L.N. Sahu, AMIE as special officergave me invaluable support in technical matters.

It was indeed a joyful experience when the CM inaugurated it inJanuary l-950 in Berhampur and the travelling public expressed ap-preciation ofthe systematic public announcement of arrival and depar-

ture of buses on the mike, as in airports, instead of being pulled about

by their shirt sleeves by touts of rival operators. However, I found tomy surprise that the main critics of the company's operation were thegovernment servants, particularly the police and postal staff. Both had

lost some of their perquisites, as the drivers and conductors of the

nationalised service, who thought they too now were government

19

tion. At that time I was not aware of orientatitlon. At that time I was not aware of orientation courses and trainingschools and relied entirely on persbnal exhortations, accessibility,prompt redressal of grievances and above all setting an examole to theprompt redressal of grievances and all setting an example to thesubordinates. I have since learnt that lhese methods are not adequatefor building good and efficient organlsation and regular training andnrienfal innorientation courses are necessarv,

The operations of ORTC were frnited to the 'Ganjam,

Koraputand Puri districts, The northern and western districts of DhenkanalSambalpur, Sundargarh, Bolangir and Kalahandi were in the jurisdic-tion of the state transport service run directly by goverrunent. It grewout of the nucleus of nationalised sertice that was inherited from theex-state of Bolangir-Patna at the timg of merger. The remaining dis-tricts of Cuttack, Balasore, Keonjhar dnd Mayurbhanj continued to bewith private operaton during my time] I was not keen on spreading thenationalised services to these districts in a hurry, as the two organisa-tions in existence had first to be stabllised and strengthened to meetthe challenges oftheir areas, without s(retching their resources further.This also suited the political masters a4d their supporters in these areasof high political consciousness. Many years had to pass before theORTC could be granted routes in theCe districts. One of my objectivesin managing the two transport organisations was to link the far-flungareas with the capital, Cuttack, and speed up communications. Thiswas my contribution to the fulfilment qf the task of assimilation arisingfrom the merger ofthe ex-states. For example, I introduced an all-nightbus service from Bolangir via Sambalpur to Meramandali, the railheadfor the train to Cuttack on the Talchet line.

servants, acted as equals and refused to oblige as before. The postalstaff had to do the loading of the Sail bags themselves, while theconductors watched, secure in their {ew-found dignity. One assistantsuperintendent of police enquired fro[ me whom he should prosecutein the case of an offence by ORTC, T1o this, I replied, "me, as I am thechairmaa.n Of course, no such instande arose. It shows the attifude ofthe lower echelons of the police at tte time. In the fust month of thecompant's operations, I toured extengively to ensure that deliciencies,if any, were removed. I wanted to derjronstrate to the public as well asstaff that they were assured of the attettion of the head of thb organisa,

IAS in Oissa 1947-1964

The State Transport Service, which made a profit of Rs 1.69 lakhsin 19,18-49 in the first year of my stewardship, recorded a profit of Rs2.64 lakhs in 1950- 51, my last year. It kept showing profits regularly€very year t:Jl L973-74, The other organisation, ORTC which openedits account in L95L-52 with a profit of 0.83 lakhs, reached its peak in1965-66 with Rs 37.23 lakhs but gradually declined to Rs 12.83 lakhs in1973- 74, Both organisations began to show losses from 1974- 75. Thisunfortunate development was mainly due to rising petroleum prices,failure to increase fares correspondingly, operation of uneconomicroutes on social considerations and the permission to private operatorsto run buses on nationalised routes up to certain short distances (16-24kms).

Sivaraman and I were at that time quite enthusiastic aboutnationalisation of bus transport and felt gratified at the immediateimprovements, such as punctuality, seating comfort, better com-munication, etc. In later years, however, we could not agree on therelative merits of the two organisations. Sivaraman believed that STS

was preferable to ORTC as the profit of the latter was subject to incometax and Orissa was compelled to share the profits with the Centre. Icountered with the argument that Orissa did not have sufficient fundsof its own to expand the STS to its full potential. It would be prudentto obtain the capital contributions from the Railways under the FiveYear Plans for a large expansion programme of ORTC. The state'sshare in the increased profit from such expansion would be larger thanwhat it would be under a smaller expansion of STS. We agreed to differ.Eventually, Sivaraman as chief secretary had his way, and the ORTClingered on while STS grew rather slowly. In due course, the fundsavailable under railroad coordination policy also dried up. As UnionSecretary Shipping and Transport from 197477,I tried to augmentthe funds but in varh. All that I could do was to streamline the State

Road Transport Corporations to some extent. More about it later.

In retrospect, Sivaraman has questioned in his bct-rk Biffe r Sweet,

the wisdom of persisting with nationalisation, particularly when thestate has proved incapable of investing adequately to meet the needs

of the travelling public and raising fares to cover increasing costs. Myown view on this matter is that a monopoly organisation is no longerthe answer. It may not be possible to privatise the services fully and at

21

22 Two Administaton : lnteraction Between ICS and' IAS

one stroke. But the solution certainl)i lies in the direction of invitingprivate enterprise into this field, such as through operation by private

owners under public control and throri,ing open certain routes entirely

to private operators. Hasty dismantling of nationalised services will not

be in the public interest.

I coptinued with my efforts to up a reputation for profes-with Hindustan Motors andsionalism and integrity. While

General Motors the purchase of the chasses and Chewolet

buses, I managed to secure the hi discounts and the best terms

as the emblem for the statepossible. I chose the Konaraktransport service through open ion. The system of sticking itto the bus with the help of was also introduced by me,

while the West Bengal transport service was painting its tiger emblem

separately on every bus irt great cost and at the risk of the tigers not

looking alike. I had read a note recotded by Sivaraman in one of the

departmental. files on the various wdys in which officers were being

corrupted. One way was to paint hotrest offrcers as corrupt through

false allegations and thus destroy their urge to be honest in future' Itold myself that when maneaters wero prowling in the jungle of public

administration, one could not afford to be off-guard even for a moment.

Two instances of my interaction with the central government

during this,period come to my mind. One was a meeting chaired by the

Railway Minister, N. Gopalaswamy Ayyangar. The subject was new

railway lines. As.deputy secretary transport, I represented Orissa' Ifound that most of the time of the megting was being taken up by a few

high-ranking officers of the Centre aad some favoured states. I refused

to be overawed by the presence of so many seniors and insisted on

having my say as the representative of a state government. The chair-man conceded the point and my advocacy for Taicher- Sambalpur line

was duly recorded. Due publicity was also given to my plea. I was

indeed naive to think that Orissa wol d get the new lir:e soon. It was

onlylater that I learnt how decisions on such matters were taken by the

Cettre and how political pressures wpre more important than cogent

arguments. The second instance wab the meeting of the Transport

Advisory Council, called to consider the recommendations of the

Motor Vehicles Taxation Enquiry Committee, Private transport inter-ests were at that til lb bringing great ptessure on the Centre to lay down

IAS in Oissa" 1947-1964

uniform rules for motor vehicles taxation, with a view to force the stategovernments to scale down the tax rates. Orissa had raised its rates tothe level prevailing in the adjacent state of Madras a few months beforeand would suffer a great reduetion in revenue, if the Conmittee'srecommendations under discussion were approved. I lobbiedvigorously with the state representatives at the meeting and vehementlyopposed the recommendation. Finally, our group won the point andthe meeting recommended that the levels then prevailing in Orissa andMadras should be treated as the maximum. A senior ICS offrcer wasrepresenting Madras at this meeting and I was rather surprised at hisindifferent attitude to the whole discussion, despite what his state hadat stake. He, however, thanked me at the end of the exercise.

Sometime towards the end of 1950, I was asked by B. Mukherjeewho had become chief secretary by then and was holding additionalcharge ofthe finance department - whether I would like to assist himas additional secretary, finance. I replied that I had no objection if myminister agreed to relieve me. For some reasoq the chiefsecretary didnot pursue the proposal. Perhaps those who were in the financedepartment at that time w.ere averse to my entry into the department.They had a closed-shop outlook and considered me as a rank outsider.At any rate, my hands were fu[ as I had in the meantime becomechairman, ORTC in addition to being deputy secretary and deputytransport controller. After sometime, I decided to take advantage ofthe apparent willingness of the chief secretary to promote me to .therank of additional secretary. I nade a proposal through my ministerfor upgrading my post in the transport department. The minister wasonly'.too ready to support my proposal, as on an earlier occasion,immediately after the transfer of Sivaraman, he had considered me forthe secretaryship ofthe entire supply and transport department. Then,I had pleaded for not pursuing the idea as there were fwo seniors tome in the service still in the districts and they might misunderstand andprotest. I was also afraid that I might suffer in comparison withSivaraman, despite my best efforts and that it would not be in mylong-term interest. To my great surprise, Mukherjee opposed theproposal. I met him to explain my position and found him annoyed. Heangrily told me that it was time for me to go to a district and asked meto indicate my consent in writing. I replied that I was always ready to

23

tion, Mukherjee agreed to make me jolnt sedetary. He was perhaps

under the impression that the special pty attached to a joint secretary

was the same as in the case of deputy selcretary. He was trying to hand

over a pyrrhic victory to me. In fact, was no precedent in Orissa

to draw upon. Enquiries were I made from Bihar. as Orissa

had a comnon cadre with it even after a separate province.

The advice received was that the

be the same as for an additionalfor ajoint secretary should

, namely Rs 250 per month.

Thus, with my elevation, a new order of joint secretaries came into

being in the Orissa secretariat.

My joint secretaryship was short-llved' In the summer of 1951' Itook leave in protest against the deci$ion to split my charges (ointsecretary to government, state transport controller and chairman

ORTC) in order to accommodate a senlor police officer who had to be

found a suitable berth outside his department' I opted for the post ofdistrict collector after the leave. Accofdingly, I joined at Bolangir inthe northern division headed by Comnlissioner, Sivaraman.

During the two-and-a-half years that I spent in Bolangir district' Ilearnt much from Sivaraman: the art ofinspection, supervision offieldwork, attention to detail, advance pla4ning, etc. I had ample oppor-

tunities to practise the art of administration, play the role of coor'dinator, probe the complexities of rural development, initiate and

undertake programmes of different kinds and above all, to understand

and redress the grievances of the peoplp. Under the inspired guidance

of the commissioner, my colleagues and I completed the abolition ofthe Gountia system (Gountia was a collector of land revenue), builtroadg executed minor irrigation works and pushed through agricul-

tural development programmes. As p4r( of the Gountia abolition, we

managed to recover five acres of goo{ land from the Gountia's jagir

and settle it with the gram panchayat. T[e income from these lands was

meant to provide a steady revenue for $pending on common purposes.

While pursuing the multiplicatior of iraproved seeds and trying to frnd

a substitute for the usurious grain loans prevalent in the district, I struck

go to the district but the question of gi{ins a written consent did not

irise as government could post'me any]whe.e and I would not like to

be seen as running away from my prdsent job. But when the chief

minister indicated his favourable attitu[e by-suggesting reconsidera-

AS in Orissa" 1947-1964

upon the cooperative grain gola scheme which was later adopted bygovernment for other districts also. It was a visit to the village Salepalliand discussion with members of the cooperative grain gola operatingthere on a small scale that gave me the inspiration. Briefly, the schemeenvisaged the organisation of a cooperqtive society in every panchayatwith grain as share capital. The gram panchayat was to arrange multi-plication qf improved seeds on the five-acre holding of jagir landsvested in it and to deposit the entire produce with thocooperative at apredetermined rate of interest, say 10 percent. The society was tosanction grain Ioans out of its stock to the needy farmers at 5 percentper annum, as against the prevalent rate of 50 percent. Governmentwas to provide a grant for building a storage godown in the head-quarters of every gram panchayat. One room was set apart for use as

office jointly by the panchayat and the society. Sivaraman, who lent hisfull support to the scheme, managed to secure an initiai grant of Rs3.5 lakhs for 70 godowns from the Food Procurement Botrus Accounthe had created with great foresight as secretary, supply and transport.The estimate of Rs 5,000 per godown proved to be low and I had tostrain myself ccnsiderably to keep within the estimate by procuringmaterials like galvanised .iron sheets directly from Tisco's factory atJamshedpur and by maintaining a tight control on the expenditure.Later, as finance secretary, I got the estimate revised and sanctioned ahigher amount. It is interesting to note that about three decades later,the Government of India sanctioned a scheme, with financial assistanceof the European Economic Community, to the National CooperativeDevelopment Corporation for encouraging construction of storagegodowm at the head offices of Primary Agriculture CooperativeSoocieties (PACS). My scheme anticipated this in a sense and at-tempted to make a coordinated use ofthe resources of the departmentsof agriculture, cooperatives, revenue ald the gram panchayats.

More than anything else, the grain gola scheme gave me theopportunity to demonstrate my capacity to convert an idea into aninstitution, plan for it meticulously, obtain the necessary resources,coordinate the activities of different departrnents and achieve the goalwithin the time I set for myself. The idea was born sometime in themiddle of 1952 and most of the seventy godown buildings and all thetwo hundred or so cooperative societies, one per gram panchayat,

25'

Two Adninistraton : Iiteraction Between ICS and IAS

started functioning by the end of 1953. Patnaik, the assistant registrar,

cooperative societies, S.S.S; Rao, the district agricultural of'ficer(DAO), V.R. Rao, the deputy co ector and several others helped

me in accomplishing this time-bound goal'

In many panchayats, the land was ilonated free and the sarpanches

constructed the buildings, The few e+gineering overseers at my dis-

posal and the assistant engineer who was specially spared for the

purpose were alwap on their toes. I toured frequently to ensure the

work was being done properly. The exercise involved not only the

construction of buildings and the orgarrisation of the cooperatives but

also the cultivation of improved seeds by the less ees of the S-acre iagiilands, the usufruct of which was vested with the panchayat for making

a recurring deposit with the cooperative collecting the usufruct. Iremember how meticulously the DAO planned the movement of im-

proved seeds in the summer of 1953 to different panchayats and how

periodically I reviewed the progress with all the officers concerned. We

thanked our stars for the late onset of the monsoon that year, along

with Lord Hillary's Everest team. For, my teams could reach some

panchayats with the seeds only in the last week of May. At that time Isuffered an attack of typhoid. I was so taken up with the seeds

programme that during my delirium,I kept having visions of crops. The

poignant thought that crops were risirrg and so was my temperature'

moved me to copious tears. I had the gratification of seeing my dream

come true before I moved to the secretariat in December 1-953. A new

institution was thus frmly in place in Bolangir, to be followed by other

districts in due course.

I also had the opportunity of onganising and holding the firstgeneral elections in December 195L- January 1952. Itwas a great lesson

in meticulous planning. One incident deserves mention. A week or so

before polling day, Pandit Nehru camb to address an election meeting

in Bolangir town, in his capacity as Congress President' We had

received instructions on how to condtrct ourselves in view of the dual

roles of Panditji, as Prime Minister and Congress leader. The physical

arrangements for the meeting, such as the dais and barricades, were to

be made under the supervision of the district magistrate' but at the

expense of the district Congress committee. A circular under the

signature ofCM was received earlier tXrat all officials, particularly those

IAS in Oissa" 1947-1964

engaged in election duties, should not only be impartial but should beseen to be impartial. The district Congress committee rnade its owninterpretation of the instructions and began to cause embarrassment.The committee hosted a dinner for Panditji and invited me, the super-intendent of police and the district judge to it, despite my plea not toembarrass us with invitations which would have to be declined incompliance with the government's directive. We did not attend thedinner. Further, the president, DCC made an issue of the attendanceof government officials and their wives at Panditji's election meeting.The Ganatantra party, which had a large following in the area, took theopposite line. As the controversy grew, the officials sought guidancefrom me. As district magistrate and the lstgning officer for theparliamentary constituency, I had to step in. I reiterated thegovernment's diiective not to participate in election meetings andadvised that attendance was one form of participation. I told them tobe conspicuous by their absence and to assemble at the district officeby which Panditji's car would be driven and thus satis$ their desire tosee the Prime Minister. It was made clear thaf there was no objectionto the wives attending the meeting. By way of abundant caution, myadditional district magistrate, S.S. Murthy, also consulted Sivaramanwho was passing through Bolangir. He confrmed my interpretation.

The meeting went offpeacefully and Panditji left the next morning.It came as a surprise therefore, when soon after, I read in thenewspapers a report of the speech given by Chief Minister NabakrishnaChaudhuri describing my action as proof of open hostility of highofficers of Bolangir to the Congress party. The Ganatantra Parishad,in turn, lodged a counter protest with the chief election commissioner,New Delhi, describing the chief minister's speech as ar attempt tointimidate the election officers of Bolangir district on the eve of thepoll. Thereupon, the chief election commissioner made enquiries fromthe Orissa government. He added that while pima-facie therc wasnothing wrong in the order barring government employees from at-tending election rreetings, an investigation should be ordered to see

if senior officers of Bolangir district had indulged in any other objec-tionable act, l, on my part, wrote to the chief secretary explaining indetail the circumstances and requesting that a formal enquirybe madeso that I may clear myself of the charge. I also demanded that should

27

28 'IwoAdmmts'

the government, after careful

Between ICS anil IAS

find mv action correct and

fully justified, they should issue a note exonerating me aad give

the press note as much publicrty as lllas given to the chief minister's

Service Association, Oris-

of Sivaraman and passed a

resolution deploring the chief s statement and requesting that

the correct facts should be placed before the public in the interest of

maintaining the morale and I of the service. Soon after the

polling was over, I met the chief and conveyed ny anguish at

the fact that he thought of me of unworthy conduct. Being a

speech. The Indian Civil and

sa met in Cuttack under the

fair-minded man, he conceded that hb was somewhat confused by the

contradictory ways in which senior offlcers in Cuttack behaved, includ-

ing the chief secretary, who had attended Panditji's election meeting

and the advice that he had received frlom the chief secretary about the

permissibility of passive attendance bj' government officials at election

meetings. Although he was at first rOluctant to issue a press note, itmust be said to his credit that on my ihsistence he got one issued after

about two months, vindicating my position. The chief secretary (B.

Mukherjee) too was generous enough to own the wrong advice given

by him on the spur of the moment. Such were the seniors and leaders

of those days.

Just before this episode, I had opcasion to save Mukherjee from

some embarrassment in a writ qllse in the Orissa High Court. A petition

was filed by Koshal Trading Syndicate, Bolangir, in which the princely

state of Bolangir-Patna held shares. Ihstead of treating those shares as

having passed on to the Orissa government, a transfer deed was

obtained by Mukherjee from the Maharaja. Unfortunately this tleed

was drawn up wrongly. It showed that the shares were transferred to

B. Mukherjee by name instead of to the Orissa Government. The

management of the Syndicate took advantage of this mistake, refused

to register the transfer in its bodks and prevented the district6egrstrate, Bolangir, the nominee of the state government' from par-

ticipating in the meetings of the bodrd of directors. This matter was

pending from the days of my predeceCsor, Barren, who, incensed at the

obstructive attitude of the management, tried to use his executive

power to fix them in some civil supply matter and thus bring them to

their senses. The Syndicate replied with a writ petition' There was a

AS ili, Oissa" 1947-1964

deadlock when I took over charge. Witb my knowledge of companylaw, I studied the case and found the lacuna. While the Syndicate wastechnically h the right, on merit and substance, it could not contendagainst the true nature ofthe transfer as one through operation oflawand a consequence of merger. I persuaded the management towithdraw the case, invite me to join the board and elect me as itschairman. Suitable compromises were also struck on other pendingmatters, in a spirit of give and take. Had the case not been withdrawnand arguments presented in court on the basis of the defective transferdeed" the negligence ofChiefSecretary Mukherjee would have becomepublic. He was therefore thankful to me for the tactful resolution of thenatter. The ambivalence he showed earlier on the proposal to makeme an additional secretary disappeared and our relations becamecordial. We learnt to trust each other and could cooperate freely whenwe met later in Bhubaneswar and New Delhi. in different circumstan-c€s.

In Bolangir district I had two dynamic subdividional officers,Mahapatra (whose initials I cannot recall) in charge of Patnagarh andK. Suryanarayanan in charge of Sonepur. The former did very goodwork in regard to minor irrigation. Although not very impressive at fustsight, he was a sound administrator and was promoted to the IAS later,if I remember right. The latter belonged to the L948 batch of IAS, aproduct of the competitive exam. He had a chequered career due toexcessive drinking and the consequent indebtedness. He died young oftuberculosis. But at Sonepur he displayed extraordinary energy andgreat administrative skills, perhaps with a view to prove himself anderase the indignities of the immediate past. I encouraged him invarious ways. Through an intelligent application of the inspectiontechnique to case records, he unearthed the nefarious practice of thetaluk magistrate of Biramaharajpur, a place cut off by thq mightyMahanadi and poor communications. He used to make importantmdrnbers of the local bar 'mahaprasad' brothers, by swearing on themahaprasad of Lord Jagannath of Puri and sharing it. It was widelybelieved that such brothers had to hang together and refrain fromgiving evidence against each other. Having thus shut off evidgnce, he

proceeded to take bribes for disposal of criminal cases.Suryanarayanan's inspection revealed that in two closely related cases

29

30 Two Administrators : Int)praction Beween ICS and IAS

in which the accused ard the defendant phanged their roles, both were

acquitted. Enquiries brought ouf thpt the magistrate took foursovereigns frorn each initially and retufned two to each of them on

ordering their acquittal. A fair treatmqnt indeed by some standard!

Some cases were also found to have instituted deliberately inpursuit ofmoney. More misdemean

suspended and a criminal case was

were brought to light. He was

Although the delinquentofficer tried to destroy the evidence by down the taluk office.

we managed to get him dismissed in due pourse. This case showed whatingenious methods were employed by qorrupt officers and how great

was the need for constant vigilance.

It was in Bolangir that I learnt tho rudiments of the kendu leaf

business. Kendu leaves are used in urapping beedis and have always

been in great demand, not only in India but also in Bangladesh and SriLanka. I saw these leaves for the first titne while they were being sold

by village women on a summer evening. I was then returning from atour of the interior. Curiosity led me t0 make enquiries. Three facts

impressed me: one, the collection of l<endu leaves provided muchneeded employment to the landless, particularly the women and

children in the non-crop sesson; two, tbe prices paid were rather low;

and three, moneywas not being paid regularly due to shortage ofcoins.I took up the third point with the Reserve Bank of India and got themto set up a small coin depot in Calcutta. I pursued the other two pointsand found that the kendu bushes grew on government lands as well as

private waste lands and the kendu metchants carried out coppicingoperations for growing tender leaves and irnproving their quality. Iconveyed this to Sivaraman on one of his visits. He took steps, with the

approval of government, to regulate the trade, fix prices for the leaves

and make this minor produce a source of revenue for government. Iwas destined to play a part in strearnlining these arrangements and inrealising the full potential of this resource for the benofit of Orissa.More about it later.

At the end of 1953, I was transferfed to the secretariat as jointsecretary in the development department. Although thechiefsecretary's intentionwas to entrust rre with the new National ExtensionService and Community kvelopment Programme, B.S. Mahanty, thesecretaryin charge of development department insisted, as a result of

AS in Oissa" 1947-1964

a misunderstanding that I should take charge of some other subjects,which in his viewwere less important. They were local self-government,cooperation and forests. One friend quipped that I was speciallybrought in to complete the drafting of the rickshaw regulations underthe Orissa Municipal Act, which had been pending for some time.However, I was not disappointed, as I genuinely believed that everysubject deserved to be studied carefully and it was up to the man incharge to make it worthy of wider attention. I have always believed inthe adage "God does everything for our own good." Earlier, this beliefhad made me refuse to try for a change of cadre, although severalfriends and well- wishers pressed me to ask for the composite state ofMadras. War service candidates, it may be recalled, were given nochoice and I viewed my allocation to Orissa as an act of God. Inretrpspect, I can confirm that I have had no regrets and I benefitedimmensely from God's dispensation. Service in Orissa provided mewith excellent opportunities, freed me from the undesirable pressuresof kith and kin and enabled me to become an impartial, just and helpfuladministrator. Similarly, the minor subjects of 1953 acquired so muchimportance in due course that a separate department of cooperationand forestry was constituted. Local self-government was taken away atsome stage but not before I put on the statute book a law for townplanning, created the directorate qf town planning and got the firsttown plan prepared for Cuttack, with the help of V.C. Mehta, a retiredoflicer of a princely state in Saurashtra v/ith practical experience ofsuch matters but without formal qualifications.

Despite mysense of satisfaction, the fust year orlornt secretaryshipearned me an adverse entry in my confidential report at the hands ofSecretary Mahanty. It was duly communicated to me. It said that I wasvery argumentative and inclined to split hairs. I was naturally unhappyat this and consulted Sivaraman. He advised me against any writtenrepresentation, saying that while evaluating the entries the reputationof the authors would also be taken into account. He added that the

. particular entry might not necessarily be viewed as indicating a gravedefect. Though I followed his advice and consoled myself, I felt letdown by my immediate superior and blamed it all on his displeasure atmy refusal to relieve his son-in-law Shyamanand Patnaik to join a postat the Centre. Patnaik, an agronomist and head ofthe soil conservation

31

32

division in the forest department was an able officer with great poter-

tial. I had a very high opinion of him. He hadjust earned the approba-

tion of Pandit Nehru for the put up at RajgangPur in

Sundergarh district, showing two whispering asking whether the

erosion of the barren lands below wa$ due to an atomic explosion. He

was then in the midst of isind an ambitious soil conservation

proggamme for the first time il His departure would have been

fatal to the programme, So I not only advised against relieving him on

the ground of public interest but also bonvinced him ofthe bright future

he had in the state. He, in fact, rose tb be head of the department soon

and made valuable contributions to the science and art of soil conser-

vation, before death claimed him prfmaturely in an unfortunate road

accident. But his father-in-law took hnother view and was annoye{ at

my reply that as secretary of the department, he was free to overrule

me. He was not willing to do so and blamed me for splitting hairs.

To Shyamanand I owe my early understanding of the importance

of soil conservation and the various techniques in vogue. We jointly

planned and executed many projects.' One such is the sea-front forest

that visitors to Konark now see and enjoy. Indira Gandhiwas reported

to have been struck with the luxuriant greenery during her visit in the

seventies. The forest had been planfed fifteen years ago. We started

it in 1955 with a few strands of casuarina on the sea-face followed by

cashew and bounded asain by casuarina. Our purpose was to save the

famous temple and the neighbouring agricultural lands from the flying

sand. Another soil conservation officer, Chaitan Patro, also deserves

mention. I met him for the,first time at Kurnool, while attending the

meeting on the soil conservation progranlme under the Machkund

multipurpo/e project. It was ajoint project ofthe states of Orissa and

Andhra Prhdesh. Patro, an officer df Orissa agricultural department,

was on deputation to the project. I was surprised to find that the

provision in the project estimate for $oil conservation was being shared

by the two states on the same princlple as in the -case of the dam and

power (1/3 for Orissa and ?3 for Andhra, if I remember right) although

most of the lands to be conserved lay in Orissa. I was able to get the

allocations reviewed and the responsibility for execution transferred

to Orissa, along with Patro. Thus did my fruitful association with Patro

US in Oissa, 1947-1964

start. I encouraged him to try new methods and exotic crops like coffee.

He did me proud.

Cooperation came to occupy an important place in the strategy ofplanned development under the Second Five Year Plan. I couldpursue the scheme of cooperative grain golas which I had earlierformulated as Collector, Bolangir. This brought me into contact withthe Reserve Bank of India and B. Venkatappaiah, its dynamic deputygovernor. My acquaintance with this remarkable man, which began

during the debate on the recommendations of the All India RuralCredit Survey Committee in a conference in New Delhi, blossomed

into a rewarding friendship during the long road journey undertakenby us for a spot study of the Bolangir experiment of grain golas and

subsequent discussions at Bombay. I was indeed fortunate in forminga warm relationship with another ICS officer with unnusual qualities

of head and heart. Servicemen like him and Sirvaraman are examples

to studn remernber and emulate.

I went to the New Delhi conference well prepared. I had armed

mpelf with a detailed brief on all the points. The brief was drawn up,

after consultation with all concerned, at ameeting under the chairman-

ship of the chief minister. I was therefore able to take the lead in the

discussions and persuade the state representatives to take a unitedstand on the creation of National Relief and Guarantee Fund, despite

attempts of central government officers to play down this recommen-

dation of the Survey Committee. In the final session, I had to face DrC.D. Deshmukh, the finance rninister, who had set his face against this

Fund on the ground that relief in the event of natural calamities likeflood and drought was a larger question than credit and could not be

met by the resources of a special fund. He however assured the states

that the central government would accept the substance of the recom-

mendation and help the states when such calamities occurred. On this

assuratrce, I advised the state representatives not to press for the

creation of the fund.

Thanks to the persuasive power of Venkatappaiah, the Reserve

Bank of India agreed to treat the cooperative grain gola society ofBolangir on par with the large-sized cooperative societies then beingpromoted by it and allow the state government to contribute share

Two Administrators : Inkraction Benveen ICS and IAS

capital and extend other facilities. ThQ orthodox view that prohibitedthe co-existence of cash and grain tranixgli6n5 wrs set aside. Evident-ly, Venkatappaiah was impressed by Wiat he saw ia the field, as wellas my argument that some method had to be found for facilitating thetransition from barter to monetised ecdnomy, a feature brought out bythe Rural Credit Survey, and above alt nry presentation as a specialinvitee at the meeting of the Bank's St{nding Advisory Committee onAgricultural Credit. The grain gola socleties made steady progress andVenkatappaiah had occasion to review them after a year or so in aconference in Sambalpur. As expecfed cash transactions becamemore important each year. oThe trerisition from grain to cash was

hastened by economy changes, I m{rs} 'add that after a time, thepractical difficulties inherent in storagd and verification of large stocks

of grain led to loss of faith in the conceined offiqials and non-officials.The regular deposits of grain by gram panchayats also dried up withthe restoration of the jagir lands to the former Gountias by theSwatantra-Congress coalition government on a singularly myopic viewof the matter. Thus the grain gola cooperative of my dream gotconverted into a purely cash-handling eociety in the seventies.

The cooperative department and the agriculture directorate hadto be made equal to the new challenges of higher agricultural produc-tion. The field echelons were weak and morale yas low. I reorganisedthem on the basis of yardsticks evolved with reference to workJoad,provided promotion opportunities, inttoduced the practice of annualreview conferences, involved the rnrinister-in-charge in the finaldeliberations and improved the self-esteem of field officers by incfud-

' ing them at the functions of the chief minister, a privilege hithertoconfined to collectors and other senior officers. In respect of thecooperative department, I collaborated with the Reserve Bank insetting up a training centre and persuaded the government to buy alarge building for the purpose in Gopalpur-on-sea. As regards theagriculture directorate, spurred by the injustice done to Chaitan Patroin the cadre, I produced the first-ever seniority list, gave opportunitiesto the aggrieved to represent openly and did away with the aura ofintrigue and secrecy surrounding thege matters. Sivaraman, who as

chief secretary-cum- development corhmissioner was taking a lot ofinterest in agricultural development gave me all the trecessary support.

IAS in Oitsa 1947-1964

As regards the forest department, which was better organised, mycontribution was to impart greater policy content to the customaryannual meet in the forest and detailed interaction with the divisionalforest officers at regional level meetings on important matters such as

working plans, afforestation, tenants rights, administration of longleases, etc. The knowledge I gained thereby proved of great valueduring my chairmanship of NABARD later.

I had the good fortune of working directly under Nabababq thechief minister and of enjoying his full confidence and support. Inciden-tally, this is how we used to refer to him, in taken of our affection andregard. He had the endearing habit of dropping in occasionally at myhouse, without notice. This, he joked was in order to escape fromunwelcome visitors. On one such visit, he exhorted me to study regu-lated markets in pursuance of a suggestion made earlier in the day byDr Sen of the Union ministry of agriculture. On another occasion, heput me on to town planning. I believe I repaid the trust he had in meby helping him to get the necessary laws passed and establishing thedirectorate of markets and town planning.

Here I must record the special efforts made to argument the forestrevenue with Nabababu's support. Income from the lease of the rightto collect kendu leaves (with which I got acquainted during my stay inBolangir) was increased several fold by adopting the monopoly systemand selecting lessees through competitive tenders. I remember how in1954 the chief minister approved, on my advice, the highest tenders foreach lot within a few hours of the opening of the tenders, therebyeliminating the scope for manipulation and political wheeling anddealing. With a view to maintaining the highest standard of hpnestyand integrity, the chief minister found it necessary to circumvbnt thedeputy minister in charge and encouraged me to deal with him direct.Again, in 1956, just before he laid down his high office and left politicsto work amongst the tribals, he accepted my advice to make advancesettlement of kendu leaf leases for the next triennium, L957-1959 arrdensured that the state got the maximum possible revenue from thissource. As we both were fully conscious of the likely abuse of thissource in the imminent pre-election monthg we deliberately plannedtb preempt the issue. As anticipated, the new cabinet, headed byMahatab, was not happy at the advance settlement and tried its best to

35

36 Between ICS and IAS

the settlement was madereopen the matter. Eut the care withleft him no room for manoeuwe.

mills for bamboos. The two marn

In my search for higher revenue, Sy attention was drawn to the

extremely low rates of royalty that being paid by different paper

were the Titagbur Paper Millsand the Orient Paper Mills, and the were not due to eraire inthe near future. The question was hovt to persuade the lessees to pay

higher rates immediately, even the enexpired portion of the

lease periods. Both the lessees hadI placed these facts before the chief

rle political clout. Whenhe said that it would be

well-nigh impossible. He, however, agreed to give me a sporting

chance. I undertook to try on one co[ditio4 that the chief minister

should refuse to see any of the of the lessees and instead

refer them to me. . In due course, after fte usual threatening noises and

the dropping of names, both the accepted my formula by which

the existins leases were to be further beyond the original

dates but on enhanced rates of royalty. The total period from the date

of decision was divided into two of six years each and rates ofroyalty were increased in two stages. The trade-off was between an

assured supply of bamboos for a longer period and higher levels ofroyalty. For completing this exercise, I had to put the lessees in a

proper frame of mind by taking certai4 executive steps, such as a strict

verification bf the exact number of bamlboos being cut and transported,

which resulted in slowing down the movement. In other words, we had

to get across the message that the govbrnment and the forest depart-

ment were not to be taken for granted and the earlier practice ofaccepting without question the figuros reported by the lessees had

ended. No doubt, the competitive offer of a new lessee, Bengal Paper

Mills, for new and virgin areas helped in creating the proper atmos-

phere for the break-through in the negotiations. The chief minister was

jubilant and recordod in a file relating to the Orient Paper Mills: 'nThe

Secretary has done a good job of work for the State by trying the

impossible and succeeding in raising rates of royalty for the bamboos.

Chief Secretary may see all the relevant cases and consider advising

other Secretaries to copy this good example."

I must add that the Orient Paper Mills did try to go back on the

agreement, after the assumption of office by Mahatab. They reopened

IAS in Oissa, 1947-1964

thematter and executed the documents, only after the government gavethem some concession in respect of one or two areas. This illustrateshow much can be done by the minister and the bureaucrat workingtogether. It must also be said to he credit ofthe political leaders ofthattime that although they were not happy with'some of the decisionstaken and the role played by a bureaucrat, they were not vindictive anddid not take it out on the bureaucrat. Each respected the other's role.

With the advent of the Mahatab ministry, my department,cooperation and forestry was reorganised to include agriculture,animal husbandary and fisheries and renamed Development. Rad-hanath Rath, who held the charge of finance and education in theChoudhury ministry became my minister. He was a journalist andwell-known as the editor of the leading O riya dar7y, Samaj, By profes-sion, he was accustomed to gather all kinds of reports and it was notalways possible for him to choose those that deserved credence. Asfinance minister, he had displayed his penchant for purposeless detailby undetaking the scrutiny of each and every scheme put up in thecabinet meeting and prolonged the buget meeting for about two days,to the annoyanc€ of Nabababu and his colleagues and the disgust ofthe attendingbfficers. Now, as development minister, he appeared tohave a mandate to question the decisions taken by the former chiefminister, particularly in the last few months of his tenure. He thoughtthat the kendu leaf lease settlement for three years was irregular on theground that the Orissa Kendu Leaves Control order would expire inthe meantime. As regards the bamboo leases, he found fault'with theprocedure as prior concurence of the finance department (which wasin his charge at that time) was not taken. I expressed my dismay at thecriticism when I ought to have been congratulated for increasing therevenue of the state. As a result. our relations came under strain.

Some other matters accentuated our differences. He did not likemy commenting on the tour uotes of the registrar, cooperativesocieties, Somnath Nanda, one ofhis favourites. Theywere in the habitof meeting and discussing important matters relating to cooperation,without involving me, the secretary of the department. He also

resented my taking exception to another favourite, R.N. Dwivedi,deputy director, markets, approaching him with a petition for a recom-mendation for promotion to the IAS. In a more serious matter, Mini-

37

38 Two Adtninistrators : Interaction Between ICS and IAS

morning, saying that he hadtion was sprung on me abruPtlyreceived a a p€tition listing some He added that I too

p€tition. The minister then showed dre his copy of the petition. After

a quick perusal, I comrnented that some of the allegations had been

looked into earlier and found baseless and that I would look into the

rest and glve my advice, if the petition was passed on. He agreed to

pass it on, after diarising it in his office. On study, I found the other

allegations to be baseless also, at any iate, not ofthe nature demanding

suspension. My enquiries showed that the main motive behind the

petition was to create a vacancy and appoint Dr G. B. Biswal as the

director. Biswal was no doubt well dualified in animal husbandry (as

distinct fromveterinary science) whidh was then gaining in importance.

should have received a copy. Thereuflon, I queried with a mischievous

look, how could he know of it? ThQ mitrister's reply was that as the

petition was anonymous, he assumed that copies would have automat-

ically been sent to the secretary. In fact, I had not received any such

His forte was intrigue and exploitatlon of parochial sentiments. He

was mainly responsible for the ruin of a highly competent veterinary

surgeon, M.M. Rao, who, according to a famous surgeon of Orissa, Dr'H.B. Mahapatra, was capable of oprbrating with both hands, speedily

and dexterously. Biswal resented thle support grven by G.B. Singh toRao and ensured, when he later bebame director, that Rao's hands

remained idle. All attempts to help R ao failed and he died in a tragic

road accident. Comingback to Miniiter Rath, the proverbial last straw

on the camel's back came in the form of a note I submitted for orders

in accordance with the latest instructions of CM, on the procedure forsubmission of files, i.e., which matters could be disposed of at the

secretary's level and which should invariably go to the minister fororders or information. Rath asked for a change of secretary in the

middle of 1957. Accordingly, I was qoved to finance department, after

an inifial proposal to post me to revenue did not go through due to the

preference of the minister-in-charge for R.P. Padhi who was then

finance seeretary. Mahatab sent for me and assured me that I should

not take the change amiss as other cabinet ministers were keen to have

IAS in Oissq 1947-1964 39

me as secretary. It was indeed very nice of him to, reassure me in thismanner.

When I took over as finance secretary Mahatab held the financeportfolio. But after a year or so, when he formed a coalition govern-ment along with the Ganatantra party, R.N, Singh Deo, the leader ofthat party, took over the department. I became somewhat apprehen-sive in view of his party's stand on some important issue. For example,the monopoly system in the case of kendu leaves, with which I wasclosely associated, did not find favour with the Ganatantra patty, whichstood for freedom of trade. It was also against the scheme of stand-ardisation of land revenue which I was promoting. However, SinghDeo put me at ease by saying that he had nothidg against me and thathe was prepared to consider alternative methods for augmentingrevenues from land and kendu leaves, although he was politicallycommitted to opposing these two methods. He recognised that thebureaucracy had the right to advise the minister to the best of its abilityand could not be blamed for the advice. After a week or so, I went backto him with proposals to levy a surcharge on land revenue rates on aslab basis and to levy atax on transportation of kendu leaves and someother goods. He readily accepted my formulations and persuaded thecabinet to approve the necessary legal measures. Singh Deo was trulymagnanimous and completely free frorn bias. I must also place onrecord the correct and sometimes indulgent attitude of Chief MinisterMahatab, who continued to consult me on various matters, whilerespecting my position as secretary working under his coalitionpartner. Free and fair advice according to the best of my ability wasall that was asked of me.

One instance during this period when Mahatab asked for myadvice deserves to be narrated in some detail. In September 1959, S.S.Murthy, the development secretaryand I were orderedto reportjointlyon two issues relating to kendu leaves. One was the policy to befollowed from 1960 onwards after the expiry of the edsting leases onDecember 31, 1959 and the other was the representation of the kenduleaf lessees for remission of a part of the lease money due for thetriennium L957-59 and e$ension of their leases for one mote year, till1960. This order was given at a meeting held in CM,s room on the 19thSeptember in the presence of the finance and health ministers, belong-

Two Administrators : I' Between ICS and US40

ing to Ganatantra Parishad, and development and revenue ministers'

bJlonging to Congress. According] to the -development

mirister

in.N.i.ut"tt;, to*e Jther decisions werle also taken but Murthydied on

tn" ZZIA ola heart attack, before he could record them' G'C' Dalh

who succeeded Murthy joined me od the 26th October, to hear the

advocate of the kendu lessees. Aft{r a scrutiny of all the relevant

information collected by the develop{nent department, we submitted

a joint report on the 3rd November. $n the very next day, I heard the

aivocate of the lessees once again, at the specific instance of the CM'

The joint report had pointed out that "in entertaining and considering

the requesti of the petitioners for rsduction of the lease amount or

extensioo of the peiiod, the Gover.nhent will be 3g1ing outside the

terms of the contiact and in satisfaction of their interest in the main-

tenance of existing trade channels of kendu leaf business' " We frstruled out refunds of lease amounts paid under the contract as

bad in principle andrecommended ariextension ofthe contract for one

.or" y"u, at reduced rates on a slab system, the average rate ofreduction being 2.6 percent on the assumption that a commercial

opportunity foimaking up the earlier losses would be also preferred

byihe less"es. The report added that "if for any reason Government

is agreeable to consider the prayer of the petitioners for some conces-

sion in the current year's royalty, theymay adopt the above slab systerr

for 1.958-59 too, " thereby fixing the to[allease period as four years, two

on higher rates of royalty and two on reduced rates' This idea of

extended contract was suggested in tle earnest hope that Mahatab

would be able to persuade the Gatratantra partners to waive their

declared opposition to the prevaililrg monopoly system under the

Orissa Kendu Leaf Control Order tomporarily and to enable them to

reconsider the entire matter calmly in the best interest of the state'

From my meetings with Mahatab, I formed the distinct impression that

he would try his best to save the systertr. But finally, the cabinet decided

to end the system due to the uncomppomising stand ofthe Ganatantra

. ministers and opted to dispose of the petition of the lessees by granting

a rebate of 20 percent for 1,958-59. Ip the preceding paragraph I have

stated how I tried to cut the loss of rovenue by introducing a transport

tax on kendu leaves along with bamboos and minerals' This episode

was made the ba sis of apima facLe case against Mahatab by the Sarjoo

Prasad Commission and CBI was asked to frame charges' Little did I

IAS in Orissa" 1947-1964 4I

realise in 1959 that I would be suspected of collusion and asked toexplain by the Central Bureau of Investigation (CBD in 1973. Somemembers of parliament also made baseless allegations against me inParliament. This, I believe, was at the instance of the estranged chiefminister, Nandini Satpathy. More about it later. Theq to my shoc( Idiscovered that Minister Rath was tdng to disown his role in thematter and deny that his development department had anything to dowith the joint report, misleading the investigators abriut his own clearpreference for the continuation of the monopoly system. That the CBIdid not believe him or that the case did not reach the stage of a trial isa different matter. This illustrates the risk that a dedicated civil servantis exposed to, if he influences policy in a particular direction.

In December 1959, the government appointed the Orissa TaxationEnquiry Committee under the chairmanship of Dr P.S. Lokanathanand asked me to be the member-se cretary in addition to my duties. Theother members were Sivaraman, Member Board of Revenue, Dr.D.C.Misra, Professor of Economics in Ravenshaw College and threepoliticians, Rajkishna Bose of the Congress, Banka Behari Das of thePraja Socialist Party and S.N. Mahanty of the Ganatantra Parishad. Itwas ind'eed a great experience. Three events come to my mind, twoconcerning my emoluments and the third the committee's work. Somemonths after the committee started its work, I was offered a post in theCentre on a higher scale, Rs 1800-100-2000. The Orissa governmentrefused to relieve me in view of the committee's work and decided tocompensate me bysanctioning a personal payon a scale, arare gesture.That is how I continued with the committee even after my promotionin March 1960 as development commissioner on super timescale. I hadto work very hard indeed, combining the committee's work with thatof the development commissioner and planning secretary. The entirereport of the committee, except the chapter on land revenue wasdrafted by me. I therefore thought I was entitled to an honorarium forthe extra work and put in a petition to the chief minister through thechief secretary. I also recommended Dinabandhu Mahapatra, jointsecretary in the finance department, who had assisted me by gatheringa variety of material, for an honorarium. To my surprise, my requestwas turned down while Dinabandhuwas sanctioned the recommendedamount. When I protested to Sivaraman, he said that my petition was

42

rejected by the CM, on his advice. He fblt that the additronal develop-

ment commissioner, almost the second.lin-command, should be above

claiming compensation for taking on additional work. This was a

lesson in self-denial, an essential element of credible leadership.

Now about the third incident. Thd Committee had followed the

practice of giving its broad decisions od various issues and leaving thepreparation of detailed drafts to me. ln the kendu leaves case, the

committee decided that the monopoly qystem hitherto in vogue should

be modified to include a provision for enumerating bushes on private

tenanted lands and for paying suitable compensation to the owners ofthese bushes. I expressed grave misgivings when this matter was

discussed but had to go along with the others in the interest ofconsen-

sus. Later, however, while drafting tho recommendations, I found itimpossible to make a cogent and convlncing case. I then took uponmyself the responsibility of changing thb recommendation in favour ofstate trading and disftibution of a part dfthe income, as compensation,

to the village community or gram panchayat for developmerrt works

and prepared the draft chapter accordingly. When the committee met

to finalise the report, I explained to them my predicament. The matterwas discussed afresh and my draft approved without any change.

Kendu leaves being a sensitive issue in Qrissa politics, the state tradingscheme could not, however, be implemdnted immediately. It fell to my

lot to make it a reality in 1972, whenl came back to the state as chiefsecretary under the Nandini Satpathy ninistry after a spell of deputa-

tion with the Centre. More about it in a later chapter.

As finance secretary, I tried to adopt a positive role, that ofa helperrather than an obstructionist. I may illustrate by a few instances. In one

case in which Minister Radhanath Rath wanted to sanction advance

increments to a favourite professor on the basis ofhis foreign qualifica-

tions, I evolved. a scheme for general application, according to whichall who were similarly qualified, becalne eligible for advance incre-ments. The cabinet approvedmy scheme. In another case, the proposal

of a department to create extra posts on an ad hoc basis was replaced,

at my instance, by a scheme of reorgariisation according to which theposts were rationalised on the basis of workload and utility. In theprocess, the department got more posts than they had originallyproposed but in a phased manner. As the concurrent head of the

IAS in Oissa, 1947-1964

Bureau of Statistics and Economics, I was instrumental in organisingthe annual crop survey and preparing the crop forecast for inclusionin the budget speech of the finance minister. This practice still con-tinues. As ex-officio chairman of the Orissa State Financial Ccrpora-tion, I played an important part in the implementation of a uniqueself-employm.ent scheme proposed by Dinabandhu Sahu, the in-dustries minister. According to the scheme, an Oriya entrepreneutwishing to set up an industry in Orissa was required to find 20 percentonly of the equity of the project, the balance of equity and loan beingcontributed by the government, OSFC and the bank, acting in a coor-dinated manner. He was made the managing director and given theoption of buying up the state government's share after some years. Ihad the privilege of presiding over the Approving Committee andcoordinating the different agencies. The most successful of the unitsthat came up as a result of this scheme was the ferro-alloys unit of B.D.Panda at Rayaghada. Many others, I must sadly admit, fell by thewayside due in part to lack of competence and sincerity on the part ofthe entrepreneur, lack of proper monitoring and the over criticalattitude of succeding governments. Such schemes came to be taken upmuch later by other states and the Centre. Although Orissa in a senseanticipated others in this matter, it could not make it a success.Perhaps, the people and the administration were not yet ready for suchinnovative ideas.

I was promoted to the super timescale in March 1960 and postedas Secretary Planning and Coordination and Development Commis-sioner. I continued in this post till November 1964, with a slight changein designationin June 1961. asAdditional Development Commissioner.I was given the responsibility for coordinating development program-mes and plan schemes among the secretariat departments as well as inthe field. I was required to keep in close touch with panchayati rajbodies, heads of departments, divisional commissioners and districtofficers. For this purpose, I developed, along with K. Ramamurthi,secretary department of community development and panchayati raj,the practice of holding a conference in every district in April and Mayfor reviewing the previous year's performance and defining the currentyear's programme under different heads. It used to be a two-day affairand was attended by all the block extension officers, the block develop-

43

44 TwoAdmt st

ment officers, chairmen of

Beween ICS and IAS

parishads and heads of departments Qr their deputies. The first day

was spent in group discussions. The plenary session was held on the

samitis. chairmen of zilla

second day under the chairmanship Qf the additional development

commissioner or the revenue commissioner. Ramamurthi

evolved different proformae for the data. They were very

useful in focussing on important The idea was to make the

different heads of departments review hnd guide their respective sec-

toral activities in the block in the presehce ofpeople's representatives,

provide an opportunity for the latter td air their views and grievances

and get redress and to bring about au all-round coordination. This

involved heavy touring in the hot mon[hs and quick movement from

district to district. I found this expetience very useful despite the

rnconveruences.

However, this practice was discolrtinued after I left the state in

1-964. Incidentally, the interest in community development and

panchayati raj began to wane at abou{ that time. I recall how hard itwas to coordinate over a very wide field the activities ofa large number

of functionaries.

The circumstances in which I was appointed as development

commissioner led to resentment in sonie quarters. P.K. Kapila, several

years my senior, was holding that post at that time and he was trans-

ferred to Sambalpur as revenue divisional commissioner, northern

division, to make way for me. He had had a heart attack a few months

before while on tour and had to be accommodated on the ground floor,

away from his department of planning and coordination. He did not

like to leave Bhubaneswar, perhaps because medical attention at the

state capital was better and as a seniof he felt he had a better right to

the post of supreme coordinator. Chief Secretary V. Ramanathan and

the cabinet took a different view. One reason was that my presence at

Bhubaneswar was necessary for the sfiooth functioning of the Orissa

Taxation Enquiry Committee of which I was member-secretary. It was

also known that Ramanathan had greater confidence in me and relied

on me in many matters. The poor hpalth of Kapila must have also

influenced government. But Kapila migunderstood the matter, blamed

me for maneuvering his transfer and hinted at linguistic bias of the chief

secretary. The truth was that I was willing to go to Sambalpur if

IAS in Oissa 1947-1964

government so decided, although I was aware of their reasoning behindthe actual decision. This incident naturally strained my relations withKapila and some of his admirers. But I managed to assuage theirfeelings fairly quickly.

As development commissioner from 1960 to 1961 with V.Ramanathan as chief Eecretary and as additional development com-

missioner with B. Sivaraman as chief secretary-cum-development com-

missioner, I had the right to send for any file from any department, note

on it and submit it to the minister concerned for orders. I rarelyexercised this right. In fact, I cannot recollect, at this distance of time,

any case of importance in which I had acted in accordance with thatright. What I recollect is the the practice of sending for files pending

for lack of concurrence by the finance department, particularly those

relating to plan schemes, when delayed cases came to me during the

periodic review meetings or were brought to my notice by the

secretaries concerned. After studying these cases, I used to send forthe officers of the finance department, suggest new approaches, em-

phasise their role as hglpers rather than inquisitors, or objectors and

persuade them to take a positive view and accord concurrence with orwithout modifications. I deliberately chose this method for two

reasons; fust to avoid any hard feelings and second to bring about achange of attitude in the offrcers. I thought, I as a senior, was advising

and training the juniors, not overruling them. These exercises took a

lot of time but I considered them worthwhile. However, friends who

had closely observed me have recently revealed that alewjuniors who

were subjected to the above procedure were not happy with me. Theyseemed to have felt that I was argumentative and that encounters withme were not always comfortable and reassuring. Some of them wished

that I had accepted their ideas or presentations readily without argu-

ment or analysis and given themmyinstant approbation.I am, however,

glad that nobody has complained that I let them down in rdoments ofcrisis, when they had acted bonafide. Such diverse perceptions; Ibelieve, are the fate of a coordinator, however tactful and considerate

he may be in his interventions.

Dr S.K.Rau, IAS, four years my junior in the Orissa cadre, who

later became secretary, textiles department in the central government'

director general, National Institute of Rural Development, Hyderabad

45

46 Two Administrators : Iiteraction Between ICS and AS

and deputy director general, Asian Organisation, Tokyowrites about me as follows: "No half-bakedproposal or an inadequatelydesigned project was approved by hir4; it had to be justified cogentlyagainst searching argument. This unnerve junior ofticers, partlydue to the most human trait in most of us wanting to be appreciated,and partly due to the distance in hierarchy. The discussioncould be viewed as nit-picking by seniors. But no discussion everled to rancour." Referring to his own experience, perhaps asadditional development commissioner in 1972-73 dnring my tenure as

chief secretary-cum-development codmissioner, he says: "When anyofficial work was discussed he rarely gave cut and diled solutions butdiscussed the various ramifications of tlre topic on hand and helped toclear my mind and find out a course. Eut when any personal problemwas broached in the family circle, heIt was a great help." He goes on to

immediately decide for me.

the earlv davs when the road

*He is creative. I remembersystem in Orissa was being

nationalised. Numerous contingencies had to be visualised and im-aginatively countered. That was only thle incubation. In the seventies, Ialso thought highly of him, from a distance, when he was tackling thedrug prices. As late as 1988, I noticed the constructive and far-reachingevolution of development and welfare funds in the National Instituteof Rural Development (MRD) when he was chairman of the financecommittee... There is a thoroughness dnd organisation in his schemeof things. His application and is quite charac-teristic. No topic is too small for him... FIis capability to Co many thingstogether is also noticeable. He could switch off and on with priorities,a fine trait."

Sivaraman and I formed a perfect team. I was often referred to as

Sivaraman's alter ego or 'Chota Sivaraman'. I used to think ofSivaraman as a guru but not in the traditional sense of a person who isfollowed blindly. There were occasions when I differed fromSivaraman and insisted on chalking ou6 my own line of action. NiharRajan Panigrahi, a bright of6cer, who became director of agriculturelong after our departure from Orissa, had told me, during my prepara-tions for this book, that he and his collqagues could not always under-stand what Sivaraman said or did. But they did not have the courageto correct or contradict him and relied on me for elucidation or

IAS in Orissg 1947-1964 47

modification. Tbanks to Sivaraman's faith in me, I could alter hisinstructions so as to make them workable and acceptable to all con_cerned. Dr S.K. Rau, who had many occasions to observe me andSivaraman closely has this to say about us:

"I night have had a shallow and inconsequential c6eer, but hadthe advantage 6f mssring nationally and internationally a number ofable administrators. I have admired few as much as I do B. Sivaraman.He is a man with great drive and vision and also had the rate quality ofbringing up others. A whole band of us grew up under trior ana tliotof hinr with a{fection and high regard. Among these, M. Ramakrish_nalya is one, much more influenced by him than others. But to rne it isdifficult to conceive ofsuch a great empathy and rapport between twodivergent personalities. Sivaraman is endowed; MRK is completelyself-made. Sivaraman is quick and iniuitive; MRK isideliberate andlogical. Sivaraman could be unpredictable in his decisiqns: MRKcouldbe anticipated with a orepared case..But both infused an over-power-ing desire and drive for development; everything else was submergedin this urgency. MRK owns Sivaraman as his guru. There could nothave been as good a sishya. Ifthey are happy with themselves I have noobjection, May their tribe grow!"

It is true that, as several others, I have often thought of Sivaramanas a guru and have constantly tried to fo[ow in his footsteps and toemulate him. This does not mean that I entirely surrendered my rightto judge mattsrs according to my understanding or articulate my viewswhich might be different from his. On more than one occasion weagreed to differ. For example, I did not agree with Sivaraman's policyof starving Orissa Road Transport Company in favour of OrissiStateTransport Service, or his arguments against valuing the lands acquiredin Cuttack for town-planning purposes on the baiis of current use ofsuch lands rather their future use. But as he was a senior with powerto. overrule or persuade the government to accept his view, I wenialongwith him in some of these matters. It is not as if there were no instancesin which I could persuade him to change his views or alter his directionin the implementation of policies and programmes. Broadly speaking,he dbferred to my views on matters like kendu leaves, coooerativecredit, and planning procedures. Our relationship was tirerefore uni-que, not merely one ofguru-shishya in the traditional sense. Sivaraman

48 Two Administrators : Llteruction Between ICS and IAS

always treated me as a valued colleag$e while I acknowledged him as

my mentor. This will be evident froni the preface to his book Bi"er

Sweet.

As I was the juniormost commiss{oner and as coordination often

involved treading on the corns of collbagues, I had to evolve my own

methods for achieving it without cau$ing ill feelings' One such was'

what I used to call, the theory of the empty chair' According to this

theory, all formal meetings were called in the name of chief sec'retary-

"u--i"u"lop-"nt commissioner. But it was left to me to conduct the

meetings. Tire chief secretary-cum-deVelopment commissioner used to

attend ior short periods, initiate discussion, take stock of the progress

of the ongoing review and clinch speclally difficult issues, if any' More

often than noi his chair was empty and it was understood by all that the

additional development commissionbr would, for all practical pur-

poses, be in control of the meeting. This practice, coupled with sudden

and intermittent presence of the chief secretary-cum-development

commissioner helped me keep the anlour'propre of the participants

satisfied, while thi age-old dictum that knowledge is power provided

the substance for the coordinating process.

I had always perceived my role aE someone who helped eliminate

delays and dfficulties, and to this e4d, I worked very hard' It is my

impiession that, by and large, this viBw of my role was accepted and

mj services invoked frequently by tho officors as well as the rninisters

ircharge of different departments. Friends used to tell me that I had

the abifity to turn my attention from one subject to another with great

"u.", -i contribute effectively to tle solution of any problem that

came up, All this may sound rather idyllic at this distance of time' No

doubt, ihere were instances when I was accused of overstepping my

authority and the canons of propriqty' But most problems could be

settled satisfactorily, as nobody questioned my bonalides or fair-min-

dedness. One instance, which came up for review after several years

and got entangled in the prejudices qf the time deserves to be related,

particularly to show how coordination is a delicate exelcise and how

ihe oft-replated exhortation to act promptly and disregard procedural

formalities can bring a coordinator under suspicion'

IAS in Oissa 1947-1964

In October, 1963, I was touring the Rayagada sub-division ofKoraput district, inspecting lift irrigation projects. I was also enquiringinto the petition of the people and a local MLA, for providing alterna-tive drinking water facilities in view of the pollution of the water in theNagavalli river by the effluents of the Straw Products Paper Mill.During the inspection of the Gedda lift irrigation project, I came to theconclusion that in view of the tardy recovery of electricity charges andthe need for proper maintenance of the irrigation system it would beadvisable to hand it over to the existing cooperative society of thebeneficiaries. This was in accordance with government policy ofpromoting lift irrigation cooperatives whsrever possible, and en-

couraging them to own and manage the headworks as well as thedistribution system. The matter was openly discussed and a clearconsensus emerged on this approach among the local officials, such as

the chief engineer, the cooperative society, the local MI-A, and thedistrict officers. There was also agreement on the terms and conditionsof the transfer. The main condition was that the society was to repaythe cost of the headworks in easy instalments and in the meanwhile thewhole amount was to be treated as an interest-bearing loan. Accord-ingly, I suggeste{that the handing over be completed on the followingVijaya Dasami day, pending the issue of the formal order by govern-

ment. My suggestion was taken as an order, as was the practice in thosedays and the transfer completed. After about a month, I issued a tournote iaying down the terms and conditions ofthe transfer. The normalpractice in such cases was that the concerned department wouldprocess the case and issue a formal government order after obtainingthe concurrence of all concerned. Unfortunately, in this case, thedepartment concerned failed to take the necessary follow-up action.Having. taken over the project, the society continued to manage itwithout anybody asking any questions.

In 1970, the Estimates Committee happened to visit the project,evidentlyat the instance of the department which wanted to show one

of the well-managed lift irrigation schemes. It was during this visit thatthe facts mentioned above became known for the hrst time after sevenyears. The committee took exception to the procedure followed. Itexpressed dismay at the hurried transfer of government propertywithout obtainingprior approval ofthe cabinet and recommended that

49

50

I

Two Ad.rninistrators : Interaction Benveen ICS and IAS

responsibility be fixed for the lapse. It qb unfortunate that even after the

comments of the Estimates Committe{ were received, the departmentconcerned did not take corrective actibn. I could have been consulted,

althoush I was at that time in the of India. However. the

matter was kept pending for which I have not been able to

fathom. All this came to my notice sode time after I retuned to Orissa

as chief secretary. While I was suggesting action against the society,

interested parties began to give a twist to the entire affair. They

attributed corrupt rnotives to me and palled for a vigilance enquiry. Infact, a petition was filed in the vigilgnce police station, Cuttack inJanuary L974 demanding that I be suspended and a police investigation

conducted. At that time, I was on leave, convalescing from an opera-' tion. Fortunately, the governor who was then in control of the state

administration ignored this petition as frivolous. When I resumed

office as chief secretary, I gave instructions, inFebruary !974,tothe concerned department to contact the Nagavalli Cooperative LiftIrrigation Society and sort out the substantive matters of ownership

and terms of transfer. But perhaps due to the Assembly electionimmediately thereater, the rr.rattter cor d not be clinched. The NandiniSatpathy ministry assumed office in March, and for some reason" the

matter dragged on. It was only at the end of March 1975, when I was

Secretary, Shipping and Transport in the Government of India, that Iwas informed that the so-called case against me was taken before the

Orissa cabinet and the latter had totally exonerated me. I was not

informed how the substantive issue relating to ownership and manage-

ment ofthe project was disposed ofand how the period from 1963 was

regularised. Perhaps my informant thought that these mattqrs were

less important than the so-called malafides of the then additionaldevelopment commissioner. This narrative illustrates the perils ofenlhusiasm and of disregard of procedures in the pursuit of coordina-tion.

Out of curiosity, I tried to ascertain the present status of this

project while witing this book. I learnt that by an order dated 30th

April 1976, the Government of Orissa asked the managing director,Orissa Lift Irrigation Corporation to ftke over the project on its behalf.

It was authorised to levy water tax frofi the beneficiaries from the date

oftakingover. Compliancewas to be roported by 15.5.76. But it appears

IAS in Orissq 1947-j964 51

the takeover had not taken place till the time of writing. I was shown aletter of government dated 8.2.90, conveying the decilions taken in ameeting held on 10.1.90 under the chairmanship of minister, irrigationand power' One of the decisions was that ,'the society should pay thedepreciated cost of the project to the Orissa Lift lrrigation Coriora-tion." So, it appears the government had reversed its order of tg76 tolake over the project and was trying to obtain the cost of the projectfrom the cooperative. Copies of correspondence exchanged Uetweenthe society and the government in the intewening years were shown tome. They indicate that the societywas keen on keeping the project withitself, improving it further as part of its Golden Jubilee in 19g9 ande4pediting its valuation for the formal completion of the transfer of1-%3. This will give an idea of the complex nature of the matter and theappropriateness of my original suggestion for transfer.

The coalition government fell in February 1961 and a mid-termelection was held in june. As a result, Biju patnaik became chiefminister and Biren Mitra the deputy chief minister. Theybrought backSivaraman as chief secretary-cum-development commissioner. It waswidely believed at that time that Sivaraman-- who was earlier shiftedabruptly and without grace from the post of chief secretary to that ofmember, board of revenue by Mahatab in the midde of 1959_ had outof vengeance, helped Biju,the rival of Mahatab to draft the manifestoon which the Congress fought the election. Sivaraman has explained inhis reminiscenses that he did not participate in the drafting of themanifesto but gave advice on some points relating to agriculturaldevelopment. In other words, he merely took the opportunity forgetting political support for some ofthe ideas close to his heart. i wasredesignated as additional development commissioner. Both of usenjoyed the full confidence of Biren and Biju. There was a conventionthat as far as possible one of us should always be available at head-quarters for consultation. Thus I cAme to be involved in matters notdirectly in my charge as secretiiy, planning and coordination andadditional development commissiorier.

Biju was a man of ideas. He rode to power on the strength of agreat vision for the development of Orissa. The most important part ofthatvision was the Paradeep Port project and the alliedlchemei ofanexpress highway and iron ore transportation from Daitari. I was not

52 Two Adninisttaton : Interaction Between ICS and IAS

directly concerned with them. . it was an extrilarating ex-

perience to work with Biju during.tle first tew yltts :" "lg,1t:i"h".", such as panchayat samiti iddustries, piped water supply to

villases and the ealvanisation of gra4 panchayats' I had the privilegevillages and the galvanisation ofof Biiu into workable schemes'of converting the one-line

Biju was always in a hurry. He was of spending nuch thought on

thl -"uo, to be employed or the long-term consequences of his

actions. As a result, several ideas of his led to abuses in

few instances maY be cited bY waY

I was persuaded one day to get an order issued that Orissa sales

tax need not be reckoned in comparlng bids received for government

purchases. This was because suppliers from outside had an edge over

those in Orissa.as a result of the loqer rates of central sales tax' Only

those suppliers were to be encouraged who would agree to set up

branchei or agenci", in Orissa and provide servicing facilities' But in

practice, the grand aim of developitrg a chain of local suppliers with

iervicing facilities was vitiated by bqnami suppliers linked to powers

that be, who began to emerge in large numbers' Tubular trusses

manufactured by Kalinga Industrios, a firm then owned by Gyan

Patnaik, wife of ihe chief minister, became competitive, once Orissa

sales tax was timitted in the compardtive calculations' As these trusses

were being preferred for the constluction of storage godowns, tribal

schools, etc., purchases from Kalingp Industries went up' This was one

of the iiems cited before the Khanna Commission as proof of abuse of

power by Biju Patnaik. Notes recotrded by me and Sivaraman were

produced. The Commission observed that the limited tender system

iollowed by me for accepting the offer of Kalinga Industries and

Sivaraman'i insistence on the revision of an earlier circular showed the

correctness of the procedures folowed. It therefore declared the

allegations baseless.

' In another instance, special allocation was made for improving

street lighting in Bhubancswar, by traking adjustments in the Annual

fhn, at the urgiug of the deputy chief minister that the state capital

stoula Ue so lighted as to make Oriyas proud-of it' The decision

happened to help the firms owned by tho wives of the chief minister

AS in Oissa, 1947-1964

and the deputy chief mrnister, as the former manufactured shades andthe latter fluorescent tubes. When I came to know of this I began todoubt whether the purpose originally mentioned to me was the realone.

Disillusioned with such distortions in the implementation of publicpolicies, and considering my career prospects, my thoughts turnedtowards the Government of India. Earlier, I had been selected for thefinance and commerce pool of the Centre. But my release was heldback on more than one occasion on the ground that my services couldnot be spared. At last, in 1964, Sivaraman could persuade the Govern-ment of Orissa to release me. He advised that as I had manv vears togo, I deserved a better work environment.

53

3

IAS at the Centre, 1964-72

I remained on deputation to Government of India for eight years,

from 1964 to 1972. During this period, I had two spells asjoint secretary

in the ministry of petroleum and chemicals spanning five-and-a-halfyears'In between, I was in USA and Japan for about seven months as

Eisenshower Exchange Fellow and a Fellow of the Asian ProductivityOrganisatibn. Soon after I returned to India, I was posted to the social

welfare department as joint secretary much against my will. I tried toimpress on the cabinet secretary, D.S. Joshi, the absurdity of posting

me to social welfare, after I had made a special study of the fertiliserindustry during my sojourn in USA and Japan and assisted the

Sivaraman team sent to invite American investment in our fertiliserindustry. However I joined social welfare department on the promise

that I would be considered for a post in the chemicals department as

soon as possible.

The social welfare department was in a piquant situation as the

secretary and the minister of state were not on talking terms and the

secretary was busy fighting a case against Government of India in the

Calcutta High Court. He was an ICS officer and the government haddecided to revert him to his parent cadre. Eventually he won the case

and the government was obliged to give him a regular secretary's post

after keeping him as "secretary-in-waiting" with full emoluments butwithout any work for some time. However, he could not be said to have

covered himself with glory as he did not enjoy a good reputation among

56 Two Administraton : Inleraction Between ICS and IAS

his peers. Meanwhile, the interests of the department were suffering

and that explained the fact that I was pipked up, on arrival in India, forthis assignment. I managed to get on viith both parties in the dispute

and even tried to bring about an amicable settlement but in vain. I also

initiated proposals for reorganising the Central Social Welfare Board

and for expanding the assistance of UMCEF. I represented India on

the UNICEF Board in the meeting of Jtune 1967. Finally, thanks to the

good offices of Asok Meht4 the cabinpt minister who held charge ofboth departments, Social Welfare and Chemicals, I succeeded in going

back to my old post in the latter deparfment. In order to do so, I had

to combine the two charges for some tide. Perhaps, this was a rare case

in which the government posted an ofhcer back t-o thejob for which he

had received training during a foreign ftllowship, that the government

itself had soonsored.

As Eisenhower Exchange Fellow ftom March to September 1966,

I chose two broad subjects for my stu{y: (a) recent developments inbusiness management techniques; and (b) production and marketing

of agricultural chemicals, such as fertilisers and pesticides- To cover

the first subject, I attended a six-week executive programme for senior

managers held by Columbia University, It was a residential course and

gave me useful insights into the thinkiqg of American maragers, theirmethods as well as their foibles. I supplernented the course work withdiscussions with corporate executives of some leading chemical com-

panies during my visits to thiir head offices. This knowledge stood me

in good stead in conducting negotiations with foreign investors when Ireturned tomy post asjoint secretary, cllemicals. As regards the second

subject, I visited a number of production facilities, marketing centres

and field installations in different parts ofthe country. I also spent some

time with the Tenessee Valley Authority, the Missouri and Kansas

Agricultural Universities, and several federal authorities under the US

department of agriculture. The World Bank, the Small Business Ad-ministration, USAID and Peace Cdrps also formed part of my

itinerary. Before leaving USA, I submitted a report to the Foundation.

I gave copies to the cabinet secretary (D.S. Joshi) on my return but alas,

no action, within my knowledge, waC taken thereon. Sivaraman towhom I also gave a copy, did however follow it up. I shall summarise

IAS et the Centre, 196472

here some of my observations, in view of their influence on my sub-

sequent career,

On the overall question of government's role in business, I was

struck how speaker after speaker at the Columbia course, includingrepresentatives of the National Industrial Conference Board and WallStreet firms, took pains.to impress on the executives assembled that"the old idea of government's intervention in economic affairs beingipso facto evil is no longer valid and how, on the contrary, governmenthas an important and essential role to play in preserving and piomotingthe health of the economy and maintaining proper conditions for thefunctioning ofthe market and private enterprise." I noticed the curiouscoincidence that "while a capitalist society is gradually recognising theneed for state (or socialist) action in some respects, the leading com-munist society has found some use for the capitalist concept of profit." '

I made the refreshing discovery that there was a move towards mixedeconomy all over, and the big American companies were talking oflong-term corporate pla.nning and the government's role in maintain-ing the environment for making such planning a success. Some of themanagement techniques made a lasting impression on me, such as

systems analysis, sequential planning (like PERT and CPM), R&D,human relations approach, case study method, brain-storming orgroup sessions and Synectics. The last-mentioned technique 'is based

on the theory that a real innovation or invention is not the result of arational process but a jump in the dark, usually triggered by theemergence of an idea from the sub-conscious level to the conscious

through the preconscious.'' Although I was somewhat sceptical of thesynectic method as demonstrated in the Columbia course, I was willingto believe that the broad underlying principle "can be applied withproht in refining one's own thinking process and diverting the searchfor solutions to more appropriate directions." I had occasion to use

some of these methods later in my career.

In rei;ard to the second subject of my study, I recorded therevelation that the American farmers organised production of fer-tilisers through their own cooperatives, without depending entirely onprivate industry. Out of a total production of 3.29, million tons ofnitrogen in 1962-63, cooperatives accounted for 75L,709 tons. Accord-ing to the latest available figures coops would soon ha\p 1,430,000 tons

57

58 Two Adnrinistrators : I teraction Benveen ICS and IAS

capacity, as against a total of 13,634,00Q tons in terms ofnitrogen. These

coops were also responsible for introducing the new concept of cus-

tomer-oriented blending near the farpn. "Ever since," I recorded, "I

have tried to popularise the idea that if American private enterprisehas a lesson for India in regard to fertiliser production and distribution,the farmer coops have an equally Sood contribution to make indeveloping a farrner-owned-and- controlled sector in this importantfield." Accordingly, I persuaded the spgcial team, led by Sivaraman and

consisting of Nakul Sen and Lowaj Kumar, who visited USA duringmy sojourn, on a mission of inviting Anierican private investment in the

Indian fertiliser industry, to make a proposal to the AmericanCooperative League. The team also took up the matter with theAmerican Secretary of State; when it met him. I was present at the

meeting and found that the capabilities of the American cooperative

sector were as much arevelation to hinr,as to us. His reactionwas rather

sarcastic as he hinted that the Indian team was perhaps more inclined

towards the coops rather than private enterprise, in view of the

ideological slant of the Government of India. Sivaraman has written inhis reminiscences that the team's visit Was by and large a failure; its only

concrete achievement being the finalisation of the cooperativeproposal soon after. The Indian Farmers Fertiliser Cooperative(IFFCO) was the result. REaders knowhow this sector has since grown

rapidly and acquitted itself well. This is a matter of great gratification

to me.

On my way back from USA in October 1966, I spent two weeks inJapan as Fellow of the Asian Productivity Organisation (APO), toobserve at close quarters "some of the circumstances and policies thathave enabled Japan to achieve a very high place among the nations ofthe world in regard to the rate of application offertilisers and produc-tion of rice per hectare." The presence of Dr S.K. Rau in APO as deputydirector- general was a great help. On my return, I put down my

observations, which APO published in the fbrm of a brochure. I was

impressed with the advice of Hidetoshi Matsuo (in his paper on

Fertiliser Application Techniques and Water Management of Rice),that rice lelds "could not be easily irlcreased by mere single techni-ques" and that high yields of rice could be achieved only by combiningvarious techniques, taking local conditions into account. I passed on

IAS at the Centre, 196472

the report and the relevant literature to Sivaraman, then agriculturesecretary; in the spirit of continuous collaboration.

When I first joined the department of ihemicals, Nakul Sen wasthe secretary and Professor Humayun Kabir the minister.In NakulSen,I found an ICS officer who was not sure of himself and who tried tomake up by being obsequious to the minister and unreasonable to hissubordinates. He made it clear to me that while I might accompanyhimto the inter-ministerial meetings, I should not open my mouth withouthis permission. This was strange and galling to me, although I couldput it down to his sense ofinsecurity and his fear that others nright findhim less knowledgeable than his joint secretary. Very soon, I found itmore convenient to give him a brief in advance and avoid accompany-ing him to the meetings. After a short period of perpleity and pain atthe behaviour of the senior, I had to devise my own ways to cope withthe situation. In due course, I found that most of the visitors to theministry from the state goveinments, industry and other departmentspreferred to call on rte with their problems. In a sense, I should bethankful to Nakul Sen for helping me to come into my ovm in a shortperiod,in the new atmosphere of New Delhi.

One incident of this period (November L964 to March 1966) standsout prominently in my memory. One day, when the secretary was outon tour, Minister Kabir called me and said that in ameeting held ear[eron th4tday, Finance Minister T.T. Krishnamachari complained thatalthough government had approved the issue of licence for a fertiliserfactory at Kota, Rajasthan to Delhi Cloth Mills (DCM), I had not yetissued the licence but instead had been pursuing vigorously the letterof intent issued to another party, Jalan of Calcutta, in respect of thesame location. The finance minister was also said to have added thatthe joint secretary in charge of the department (meaning me) hadreportedly taken a bribe of rupees one lakh from Jal2rn. He seemed tohave suggested that the joint secretary should be sent back to his stateimmediately. I replied that the application of DCM was srill pendingand that in the week before, I was asked by Secretary Nakul Sen to sendfor Charat Ram of DCM and inform him that in view of the letter ofintent already issued to another party, it wouid not be possible for thegovernment to grant him the licence for a full-fledged fertiliser factory,but the government would favourably consider granting some addition-

59

60 Two Afinittistrators : Interaction Between ICS and AS

al balancing capacity for his existing carbide factory at Kota.

As regards the allegation of a laughed and suggested that asearch misht be ordered. On the of my reversion to the parent

cadre, I had no view except that the of India would be

required to consult with the of Orissa on the circmstances

of my reversion so soon after my joinirtB in Delhi. I however expressed

confidence that Orissa would welcomd me back with open arms. Kabirwas surprised at my calm reaction to the accusation by TTK. Aftersatisfying himself about the facts relatihg to the applications of the two

parties, he treated the matter as closed.

Although I showed an unperturbed front to the minister, I was

disturbed by the kind of allegation add the source from which it had

emanated. I had to do something. I called to tea a few friends who are

known to be close to TTK and announced publicly that according totheir highly admired minister I was supposed to have received a bribe

of rupees one lakh. I thought that an absurd allegation had to be met

by an equally absurd method, accolding to which the bribe-takerhimself undertook to advertise the bribe he was supposed to have

taken. M.K.K. Nayar IAS, Managing Director, Fertilisers and Chemi-

cals, Travancore (FACT), C.S. Krishnamurthy, Joint Secretary,

Finance Ministry L. Kumar, Adviser, Petrochemicals in my depart-ment, who knew me and my style of living, were among the invitees.

They carried this message to TTK as well as to the parties concerned.

Although I did not find it necessary to confront any of the parties withthis canard, I could guess from their subsequent behaviour that they

were taking special care not to dfendl me. I developed a revulsion forTTK and from then on avoided him. It was never clear to me why, inthe first instance, he had made such a serious but baseless allegation

and having made it, why he did not pursue it. This behaviour did not

square with his reputation for admiuistrative ability. There was, ofcourse, no love lost between TTK and Kabir. TTK was reported to have

declared that Jalan, thp favourite of Kabir, would never be allowed to

convert his letter of intent into a licence. Was Kabir the real target and

I a mere dummyin the battle of ministers? Thoughts of this kind used

to bother me for a long time. It was indeed a new experience. It made

me realise that it was not enough to truild a reputation in Orissa and

that in the treacherous environment of New Delhi one had to start

IAS at the Centre, 1964-72 61

afresh. By way of epilogue, I may add that both TTK and Kabir left the

cabinet soon after.

In dealing with applications for licences, from industrialists' I

adopted a rulJwhereby nobody was to visit me at home' At the office'

uppii"u.rt, came only ii they had a prior appointment' Discussions on

substantive issues could only be conducted-by senior personnel of the

"o-puny and not by liaison officers. If multinational companies with

ttreir treaa offices aLroad had to discuss matters or conduct negotia-

tions for sale of knowhow, equipment, etc', I insisted on authorised

representatives being present; no agents or middlemen were enter-

tained. I remember once two senior retired government servants, one

a former chairman of the Union Public Service Commission and the

other a former ambassador tried to take advantage of their service

background to breach the rule. But I held firm, as these gentlemen'

thou;h highly respected in their time, had nothing relevant to con-

tribuie to ihenegotiations. It is unfortunate they had stooped to liaison

work and thus 1ad demeaned themselves' In another instance' a

o-.in"nt industrialist, yhose application for licence for polyester

[b." *u. pending in the department called at my house with a gift' a

ior"ign-.ua" ttaisistor radio. He was sent backwith the comment that

his ain of -aking me happy would be better served by taking back his

giit. itt"t"ut ".,

t'tti, ioautiiiutist never dared to sit in front of me until

asked.

Despite some unpleasant and unsatisfactory encounters with the

secretary, I concentrated on the fertiliser industry which' of all the

subjectsin my charge, began to assume the greatest importance in the

"orrt"*t of ugiicultuial production. Indigenous production of fertilisers

was rather low and accounted for less than 50 percent of the demand'

Wiin ,ft" introduction of high yielding varieties of seeds, the demand

was likely to rise sharply. So it was imperative that more factories were

set up q;ickly in the country if the import bill w.as notto jump steeply'

Theiein lay the dilemma: should the scarce foreisn exchange resources

available io the country be used to import fertilisers or the capital

equipment required to set up new factories? The first.method would

no a'ouUt fulfi'll the demand in the short term but the second was

essential for a solution of the problem in the medium and long term'

Another dimensionwas addedby the argument that in view of the large

62 Two Administrators : Interaction Beflveen ICS and IAS

number of new fertiliser factories thal needed to be set up over anumber of years, it would be prudent to first build up the necessaryengineering design and management e*pertise u. *" u, the capacityto produce the equipment indiro proouce rne equrpment rndigenouslyl Lobbies grew up to championeach point of view in the government and outside. But the financeministryincharg"orro."ig"-J"Jh;;ffi i.jJJ:Hil'i;iffiff;to meet the demands made on it. The World Bank, USAID and otheraid-giving agencies were pressing for d change in the government,spolicies in this matter. It was in this context that thJ governmentde_cided to throw open the fertiliser indrtstry to foreign investment andcollaboration. Hitherto, nitrogenous fertilisers were mainly confinedto the public sector, while superphosphates were being produced inthe private sector. The Sindri and Nangal units of the Fertiliser Cor-poration of India (FCI), the Atwaye unit of Fertilisers and Chemicals,Tlavancore (FACT) and the smal unit attached to Rourkera SteelPlant were the onlynitrogenous units in production. Sindri and Alwavewere very old plants and their production was well belowtheir installedcapacities. Gorakhpur, Trombay and Namrup units of FCI were invarious stages of construction. My task wu. io see that these publicsector units were completed quickly, and foreign investment and col-laboration in new factories facilitated in the pri,ate sector.

Four new factories at Kota, Baroda, Visakhapatnam and Madraswere licensed before I left for USA in February 1966. The first was setup by DCM with technical collaboration of ToyL Engineering ofJapan,with the help of supplier's credit towards foreign exJange. Thetecondwas the v.enture of Gujarat state governmpnt and the collaboration andthe foreign exchange arrangement was the same as in the first case.They were completed before schedule and the foreign collaboratorearned a bonus, in accordance witha clause in the agre-ement. Srivatsaof the Gujarat State Fertiliser Corporation, who'could follow thecollaborator's discussions among themselves in the Japanese language,toid me that the Japanese collaborator deliberately ielayed the dateof approval of his government (Ministry of International Trade andIndustry, better known as MITI), which was the effective date for thepenalty and bonus, while taking full advantage of the firmness of thecontracl The Visakhapatnam project, named Coromandel Fertilisers,was a joint venture of EID parry of Madras and International Mines

US at the Centre, 1964-72 63

and Chemicals (IMC) of Detroit. In the case of Madras, Governmentof India on the one hand and American Oil Co. (AMOCO) andNational lranian Oil Co. on the other, were equal partners but themanagement rights were vested in AMOCO through the special deviceof a management committee. As joint secretary I played'a significantrole in pushing these proposals through the various stages of clearancein government. Of these, I vividly remember the discussions withAMOCO in which the details of the new arrangements, referred toabove, w€re hammered out. In fact, my departure for USA in February1966 was delayed by a few days on account of these negotiations.

Note may also be taken of the proposals that fell through butnevertheless motivated me and the government to reconsider ourpolicy on fertiliser prices. Soon after I joined the chemicals deparGment, Bechtel Corporation, an American engineering and construc_tion company, submitted a proposal to erect four big fertiliser factoriesin the four regions of the country, under the ownership of Americaninvestors. This had the blessing of the government of

-USA, and this

was its way of assisting India in augmenting indigenous production offertilisers for use in the ongoing agricultural production programme.After a series of discussions, the proposal was dropped as Bechtel'sterms concerning marketing pricing, pay-back period for investmentand share-holding pattern were not acceptable to Government ofIndia. It was nevertheless realised that unless something was done toreformulate our stand on these points, it would be well-nigh impossibleto attract foreign investment as well as to increase indigenous produc-tion of fertilisers in the medium term. Out of this reatlation came theconcessions made on management rights in the Madras case and thenewfertiliser marketing and price policies. It was agreed that althoughthe fertiliser producers could not be given freedom to fix prices, theprices fixed by government thereafter would ensure a 12percent returnon capital.

The pricing policy had hitherto been concerned with equalisingthe prices of the materials obtained for the pool from different sourcesat different prices and with maintaining as low a price as possible toattract the users. Now it was changed to include the concerns of themnufacturers, such as a reasonable return. The fertiliser facories werealso given the freedom to market the products, without undue inter_

64 Two Administators : Ihteraction Bettveen ICS and IAS

ference by the pool. In the discussiqns leading to these decisions, Itook a leading role and 'vhenever neqiessary utilised the considerable

influence and lobbying skills ofSivararhaq who as agriculture secretary

in charge of the pool was himself vitally interested in increasing the

availability of fertilisers.

The lobby in favour of large inv0stments in the public sector to

increase indige.nous capabilities had dlso to be satisfied, as this was in

accordance with our declared policy of self-reliance. The planning and

development division of FCI headed by Dr P.K. Chakravarti was an

enthusiastic exponent of the view that the country should rapidly build

up indigenous capacity to design and construct fertiliser factories' He

naa aone considerable work on catalysts and was in need of technical

knowhow in certain other areas. The FACT Design and Engineering

Organisation (FEDO) had also done some work on design engineer-

ing. Greatly impressed with the patniotism, sincerity and capacity of

thise two organisations, I persuade{ the government to permit the

purchase of knowhow for urea and arnmonia from Montecatini of Italy

and Imperial Chemicals of UK respectively. The agreements were

signed just before I left on my fellowship. The P&D division and

FEDO, who had thus acquired the necessary technologies were re-

quired to work together. Afte r a few months, FCI and FACT were able

to secure approvals for putting up four factories at Durgapur, Barauni,

Namrup II, and Cochin, on the basis of these agreements' Sivaraman

has written in his reminiscences that ttre approval was due to his advice

that the Government oflndia should demonstrate its deterrnination to

set up new fertiliser tactories by using the foreign exchange at its

dispoial before seeking the support of USA for more foreign invest-

ment. I would be wrong if I give the impression that the above decisions

on the knowhow were obtained without effort and that there was no

opposition. The other school which favoured turnkey contfacts to

foreign contractors was quite active. Dr S.K. Mukherji of the Trombay

Project of FCI was very active as the leader of this school and urged

thai Durgapur be entrusted to Kellogg of USA. Although my sympathy

lay with Dr Chakravarti, I was rather apprehensive of his extremist

portu.". on the one hand and the porsuasive manner and skills of Dr

Mukherji on the other. So I was anxious that the department have a

technical adviser who could steer clear of the extremes and take a

US at the Centre, 196472

balanced view. To my satisfaction, Kasturirangan, then GeneralManager FACT, agreed to join the department as Chief Project Of-ficer, Fertilisers, just before I left for USA. I was sure that the govern-

ment would get correct advice in my absence.

Another matter that engaged my attention, again at the instance

of Dr Chakravarti of P&D Division, was the use of coal as feedstock

for fertilisers. T. Swaminathan ICS, Secretary Technical Development

also favoured coal, as the country was known to be richer in coalthanin petroleum. Earlier, I had some acquaintance with this matter when,

during Biju Patnaik's regime in Orissa, a proposal for a coal-based

fertiliser project at Talcher was mooted. On the eve of my departurefor USA, a working group headed byme recommended that this mattershould be examined in depth as the prevailing surplus situation inregard to naphtha, the favourite feedstock at the time, might not last

long. But this suggestion was not taken seriously in view ofthe lingering

technological doubts till 1,970, when the shortage of naphtha became

real and it was found necessary to use even inferior hydro-carbons likefuel oil with high sulphur content. A technical committee headed byKasturirangan recommended the establishment of two plants near the

pirheads, subject to certain safeguards. .Talcher in Orissa, and

Ramagundam in Andhra Pradesh were thus taken up. It is a matter ofregret that they have not performed well. The technology needed tobe perfected further.

Soon after I joined the chemicals departrr,ent for a second spell inJune 1967 I was called upon to handle a difficult situation. MinisterAsok Mehta and Secretary P.R. Nayak decided to get the public sector

fertiliser industry reviewed with the help of American experts. Al-though an equal number of Indian experts were associated with the

exercise, they did not define the composition of the group or the scope

of the review in precise terms. Nobody was nominated as chairman orsecretary. It was also not laid down how the group would function and

to whom it would report. My attempts to settle these points at the start

were not appreciated by the secretary or the minister for some reason.

However, as I had the responsibility for assisting the group and as I was

aware of the sensitivites of the Indian technologists of the FCI I calledmyself the convenor, a term conveying a routine role and managed tosteer thg group with the help of two management experts who were

65

66 Two Adninistraiors : Intteraction Beween ICS and IAS

members of the group, Dr Kamala Chdwdhary of the Indian Instituteof Management, Ahmedabad and Mur]thy of the Administrative StaffCollege, Hyderabad. Although the P&D division of FCI was repre-sented on the group, some technologists ofthe divisionwho passionate-ly believed in the development oflndian technology took offence at thereview by the Americans and threatened to stage an awkward incidentduring our visit to Sindri. fwas able td defuse the situation. I used around table so as to evade the question pf chairmanship. This was longbefore the Americans and the North Vietnamese used this ploy fortheir meetings in Paris. At one stagei the Americans in our groupwanted to write a report on their o\'r'n and submit to their embassy. Iarranged by consensus that each chapter would be written jointly byone American and one Indian. Eventually, the report ofthe group wasunanimous. The group recommendedt the amalgamation of the.twopublic sector companies, the Fertiliser Corporation of India andFACT, the appointment of functional directors and a countrlnvidemarketing setup. The idea was to pool the manpower of the twoorganisations in the technical and markteting areas so as to boldly facethe competition that would be offered by the growing private sector.The Americans laid great emphasis on the marketing aspect; FCI wasrather weak in this respect, while FACT had taken certain innovativesteps. The minister and the secretary, whom I kept informed of theprogress of the group from time to time, did express their satisfactionat the completion of the review without a serious hitch. From thisexercise, I learnt the dynamics of sma groups consisting of personswith different backgrounds and with different expectations. There wasconsiderable opposition in the two organisations to the idea of amerger. Eventually, this idea was given up in favour of an arrangementfor better coordination. The suggestions to appoint functional direc-tors and organise marketing systematically were accepted.

Between June 1967 and May 1-971n I helped establish eight newfertiliser factories. While those at Goa, Panki (UP) and Tuticorin werein the private sector, those at Haldia, Talcher and Ramagundambelonged to the public sector, and the remaining two at Kandla andMangalore were set up in the cooperatite andjoint sectors respective-ly. The installed capacity, in terms of nutrients, had not only reached2.6 million tonnes in 1970-71 but was well on its wav to exceed 3 million

IAS at the Centre, 1964-72 67

tonnes in the next two years. But it was not altogether a success story.While most of the units in the private sector and one in the publicsector achieved almost full capacities in their annual production,otherpublic sector units lagged far behind. For all my zealous advocacy ofthe public sector and indigenous technology, I was not, in the end, sureifI had served the larger interests ofthe country in the area offertiliserproduction. In the eighties, public sector units continued to under-utilise capacity to the tune of60 percent or so and policy makers beganto opt more and more for foreign technology in fertiliser plants. Iwatched this development with mortification and remorse.

Petrochemicals is another industry in which I played a role, alongwith Lowaj Kumar, Adviser, petro-chemicals. We both joined th-ministry at about the same time and soon struck up a friendshio whichproved lasting and mutually rewarding. Here ii another case of ageneralist and specialist combining to achieve memorable things. Aformer officer of Burma Shell and a chemical engineer by profession,Lovraj Kumar had mastered the techiques of project analysis,economic evaluation and policy formulation. A man of high integrity,he took up the promotion of petrochemical industries in the countiyas his mission and laboured hard in face of severe obstacles. Later. herose to the position of secretary, petroleum and chemicals and madesignificant contributions. We worked as a team and negotiated suc_cessfully agreements with Dymamit Nobel of West Germany for trans-fer of technology. We set up the Indian petrochemicals Corporationat Baroda and guided it in the early days by participating actively in theBoard meetings. Another officer who deserves mention is R. Ganapatiof the IAAS. He joined the corporation as its finance director and wasa great asset to us. He made up for the managerial deficiencies ofMehta, the chairman-cum-managing director. Ganapati rose to be-come secretary to government in due course. R.S. Gupta of IDAS, thefinancial adviser to the department of chemicals was also verv helofulin all our endeavours.

A word about P.R. Nayak, the common secretary for the twodepartments of petroleum and chemicals. He had the habit of meetingthe officers of each department separately at a fixed hour every day.Officers up to the rank of deputy secretary were required to attend, ifthey were not otherwise engaged. There was no set agenda and anyone

68 Two Administrators : Interaction Between ICS and IAS

could bring up a point in answer to th$ secretart's questioq 'What is

new?'r I found that Nayak" a compulslve decision-maker, would not

hesitate to give his verdict on the points raised, without going into dlthe relevani aspects and that it requiied enormous effort to get the

decisions reversed, if circumstances Co warranted' I had a deputy

secretary S. Sundararajan of the Orlssa cadre of IAS' who in his

keenness to impress the secretary would bring up new points and create

difficulties for himsetf as well as otherF. I made him see the need for

caution. This apart, Nayak, was a fine man and an able officer' But'

his penchant for quick decisions and his failure to record reasons in

support of such decisions, landed him in troublejust before retirement'

*h* .o." motivated complaints against him were taken seriously by

PM's office. He was suspended and subjected to harrassment' It was

several years before he was vindicated by the Supreme Court' It was

widely believed at that time that P.N. Haksar' the powerful secretary

to th; P.M., was responsible for Nayak's misfortune' The lesson Ilearnt was that while one might not avoid making decisions quickly'

undue haste should be eschewed and every important decision must be

supported by reasons, in writing. Good faith is no substitute for good

,"u.orr. "nd-u

,"cord of the reasons is the right armour against future

attacks.

P.R. Nayakwas succeededbyB' Mukherji,ICS of the Orissa cadre'

I have writien earlier how during his chief secretaryship, we had

improved our relations. They acquired some warmth.in the late sixties'

t as loint secretary, chemicals and he as executive director, Fertiliser

Corioration used to meet frequently. Earlier, he-was abruptly

removed from the post of managing director, State Bank of India'

during TTK's tenu.e as finaoce minister. He was tipped as a possible

,u"""I.o, to B.C' Mukherji, chairman of the Fertiliser Corporation'

also of the Orissa cadre of ICS. But fate in the shape of Dharma Vira'

the cabinet secretary, intervened dnd made B' Mukherji health

secretary and the common tormentor' TTK had to leave the ministry

headed Ly Lal Bahadur Shastri. Mul<herji and I got on famously' so

much so that I came to be consulted even on matters not in my

jurisdiction.

AS at the Cente 1964-72 69

A subject to which I devoted considerable attention during thisperiod was prices of drugs and pharmaceuticals. There had been astrident demand for reduction of prices for some years. The govern-ment promulgated the Drugs prices (Display and Control) Order1966, freezing the prices-of all formulations at the level prevailing on30th June of that year and subjecting all future increases to priorapproval of government. This did not mean that all frozen prices werereasonable. While some were known to be high, others were out ofstep with the rising costs ofproduction. But government was not readyto scrutinise prices of individual drugs at that stage. So almost simul_taneously, the Tariff Commission was asked to study the cost structureof 18 selected bulk drugs and their formulations and some relatedmatters and recommend fair selling prices. Meanwhile, an inter_min_isterial committee was set up to consider applications for increases inaccordance with the guidelines evolved by the Development Councilfor Drugs and Pharmaceuticals, particularly in respect of the markupover the.factory cost. The Tariff Commission submitted its report inAugust i96€. It suggested fair selling prices for specified bdf drugsand their formulations on the trasis of the weighted average of theex-factory prices of'different manufacturers and aftei makingprovisions for packing, royalty, research and selling expenses as wellas 15 percent pre-taxreturn on the capital employed. Wirile this reportwas being examined in my department of chemicals, the health ministrvstarted a move to bring down prices on all supplies to government.Consideiing the large share of government supplies in the total turn_over-, a drastic reduction in the prices of such supplies was likely totempt the manufacturers to press for a hike in the prices payable bythepublic. Further, the data and information brought to light by thecommission showed that not all the prevailing pricls, although frozensince 1968, could be justified with reference to the prevailing costs ofproduction and marketing. Thus the matter came to a head i n1969-70,when Dr Triguna Sen was minister-in-charse .

After careful consideration and consultation with the industry'srepresentatives, I advised government that the situation demandednothing'short of rationalisation of prices and the introduction of acomprehensive system of regulation. While doing so, I took note of thefact that the drug industry was not homogenous. It'colsisted ofa large

sector owned or controlled by foreign firms, a medium sector consist-

ing of Indian entrepreneurs and a sdall-scale -sector

of formulators

*fr'o Uua recently entered the indusfry with the encouragement of

government While the first group acqountedfor a very large percent-

Ige-ofthe production ofbulkdrugs anld their formulations' the second

*1. io.t -utiog an entry into bulk drrrgs and the third,was confined to

formulations and almost entirely dependent on the first and second

groups for the supply of material. Ge4erally speaking, several formula-

Iio.r. *"t" being sold under differedt brand names and at different

prices, although they were essentially the same' Besides, there were

several combinations of drugs in sevdral dosages' It was well-known

that medical practitioners had their own preferences and the public

often allowedthemselves to be guided by them' In these circumstan-

ces, one had to tread warily and a certrain flexibility had to be built into

the system of regulation. dbviously, no simple scheme of reduction of

prices of a few ielected durgs would meet the situatioa', The cabinet

approu"d -y upproach as well as the detailed proposals in April 1970'

ftt" orugs (nrices Control) Order 1970, of which I can truly claim to

be the author had the following aimsi

"Firstly, the order sought to reduoe the prices of certain life-saving

drug formulations to a livel more or less envisaged by the Tariff

Corimission and to place the prices of other formulations, wherever

nocessary, on a more rational footing. Secondly, it attempted to bring

down ali frozen prices of 1963-66 that were high, of all firms, to

reasonable levels. Thirdly, it enabled the firms to revise the prices

upwards wherever necessary so as to be in keeping with the present

cost of materials and other costs of production and distribution'

Fourthly, it provided an opportunity to small and medium firms under

Indian control, who had entered the industry in more recent years' to

adjust their prices suitably without undue constraint' Lastly, a certain

degree of flexibility was deliberately built into the price control system

so-as to ensure that the growth ofthe industry according to the needs

of the country will not b- impaired and thus will allow the competitive

market forcei to have their due effect, and to let the community reap

the benefit of lower prices wherever possible'" (Drugs Prices Contr'ol'

Aims and Achievemints, Ministry of Petroleum and Chemicals' Mines

an{ Minerals.)

Two Administrators : Iflteraction Beween ICS and IAS

IAS at the Centre, 196472

For the first time, a formula was prescribed for fixing the retailprices of formulations, according to which the markup (covering themanufacturer's margin, promotional expenses, outward freight, dis-tribution costs and trade commission) was regulated on the basis ofdifferential ceilings: 150 percent for new formulations containing newingredients derived from research; 1ff) percent for new formulationsinvolving new manufacturing techniques developed for the purpose

and with proven therapeutic value; and 75 percent for the rest.Provision was made to reduce the rate to 75 percent after 3 to 5 years

in the case of the first and second categories. To impart flexibility and

to cater to those manufacturers who might be reluctant to submit theircost data to government for scrutiny (many fell into this categoryduring1960-70) and to reduce the workload on the government, an alternative

scheme of pricing was also introduced. According to it, the manufac-turer could suggest prices for all hisformulations together, so as to limithis overall gross profit before tax to 15 percent ofhis total turnover and

obtain approval to the entire list at one go. This was intended to spreadthe philosophy of a large turnover on low prices as against a small

turnover on high prices, with a view to inducing a bigger marketingeffort by the drug companies as well as to increase the availability oIdrrrgs throughout the country. It was also announced that the changes

would be brought about in a phased manner and the government wouldadhere to certain time-limits for scrutiny and approval. These ideas

were firmed up after detailed consultations with the repres€ntatives olthe industry.

Most of the manufacturers in the large and medium sectors an-

nounced their new price lists in August 1970 as required. Some firmsin the small-scale sector also followed suit, although they had time tillSeptember. It was found that a few frms had notified increased pricesfor some populalitems without sufficient justification" contrary to the

understanding the industry had reached with the government. Govern-

ment promptly nullified the increases and asked the delinquent com-panie;,to reirert to the previous prices. In other words, governmenl

withdrew the freedom to announce them in anticipation ofits approvaland once again subjgcted the increases to pribr sanction.

The unfortunate increases referred to above brought the ControlOrder and the regulatory system under severe criticism. The critics

71

72 Two Administraton : Interaction Beween ICS and US

conc€ntrated on the few increases {nd ignored many substantial

decreases. Ther€ was a furore in P{rliament, Unfortunately, the

minister lost his nerve and began to e$ade responsibility by pleading

that he was ill-advised. At that time I *as onleave, convalescing afteran operation. All kinds of allegations began to be made against me.

Bhupesh Gupta of CPI was in the lead hnd an article was published inthe party paper, New Age under tho catchy title, "Rama-Krishna-Ayyoah". I was described as the villain Of the piece and an agent of theprivate sector drug industry who delibbrately misled the minister intoaccepting wrong policies. It was even said that I was practically liftedout of the Sarabhai Group to join the ministry. I came to know long

after, that my recommendation of Sarabhai Chemicals for a licence inthe case of a single drug in preference to Gujarat Pharmaceuticals was

behind this particular allegation. The communists had no qualms intaking the side of one capitalist against another under certain condi-tions. Some MPs who knew me well and undertood my backgroundand reputation did not give credence to the wild allegations and thepicture of the minister as an innocent atd helpless victim. Led by AsokMehta, the former minister for petroleum and chemicals, they calledme from rny siik bed to explain to thern the facts in the presence of the

minister. I clarified how the Drugs(Prices Control) Order was the

off-shoot ofa cabinet decision and the climax ofa longinter- ministerial

debate over several alternatives, that the minister was a party to every

single provision made therein and that it would not be correct for himto say that he was misled. Clearly, the stand taken by Triguna Sen was

in violation of the convention in a parlliamentary democracy. Had he

not tried to transfer the blame on to his officer but stood firmly by him,

at the same time promising to remove atromalies, if any, he would have

raised his own stature, saved the goverqment from embarrassment and

strengthened the morale ofthe bureaucracy. However, as it happenedit was left to Secretary Mukherji and men after rejoining from sick leave,

to tackle the errinE units b the industry and correct the few anomalies

that were brought to our notice. As a postscript, I may add Dr Sen didnot last very long after this episode, perhaps for other reasons.

To complete the story the results of the Dr'rgs Prices Controlexercise of 1970 were summarised in a booklet of the ministry citedearlier. Minister Sen said in the foreword: "It is my earnest hope that

US atthe Cenffe, 196472

this booklet would fulfil its purpose of enablhg the general public toassess objectively government's policy, the measures adopted to imple-

ment it and their effects and to remove misapprehensions." Accorditgto thebooklet, reductions in the prices of important products ofleading

manufacturers ranged from 35 percent to 82.53 percent, the forrner

being in antiseptics and the tatter in antibiotics. Their prices, no doubt,

set the maximum limits for the products of other manufacturers. In the

case of some products, increases were also allowed. The booklet

further says: "It is interesting to note that out of 119 firms called fordetailed discussion and scrutiny, 14 firms in the large and mpdium-

scale sector and 11 firms in the small sector proposed no increases for

any of their products altho'rgh they agreed to reduce the prices ofsome." There were some well-known names among them.

During my second spell in the department of chemicals, my health

was affected seriously on two occasions. First, in 1967, soon after

leaving the social welfare department I had an attack of iridocyclitis in

both eyes. For two weeks, the prospect of losing my sight in both eyes

stared me in the face. Fortunately, due to timely diagnosis and treat-

ment by Dr L.P.Agarwal of the All-India Institute of Medical Sciences,

New Delhi, I got back my sight but with the warning that the disease

might recur. It did recur in one eye two years later but was promptly

controlled. This experience led me to the introspective question

whether my eye problem had anyhing to do with my special efforts to

get away from the social welfare department, where I had been looking

after the handicapped. After the initial trauma, I braced myself to learn

Braille, if necessary. The occasion did not, however, arise. The second

event took place in January 1970. I suffered a mild heart attack andjoined the cardiac club, as I used to say. This necessitated changes inwork habits, diet and offrcial routine. I am proud to say that under the

wise guidance of Dr K.P.Mathur of Willingdon Hospital, New Delhi. Isuccessfully got over this crisis and remained a stable angina patient

for almost twenty years without any serious problem in all those years.

In January 1990 I underwent bypass surgery successfully as my angina

had becorqe unstable. The purpose of narrating these two events here

is to convey that from 1970 I had to carry on my life and discharge my

duties under the ever- present threat of two incurable aiknents.

73

74 Tovo Administrators : Inlgraction Between ICS and AS

Towards the end of 1970 I was emfiarielled for the post of addi-

tional secretary. Under the advice of SeQretary Mukherji, Minister Sen

tried to retain me by creating a post bf additional secretary in the

department of chemicals but the finance ministry did not agree. Here,

I must acknowledge the broadmindedhess and sincerity of Dr Sen.

Thereupon, I was offered the post of ad$itional secretary in the minis-

try of agriculture and community devefopment. But it took about six

months for this proposal to materialis$, long after the promotion ofsome of my juniors. This being the only instance in my career, where Idid not get my due on time, I must put down the facts as I know them,

although I am not sure even today about the real reason for the delay.

Before I do so, I must state that I was briefly considered for the post

of chief controller of inrports and exports but dropped by MinisterL.N.Mishra and Secretary H.Lal of conimerce ministry reportedly on

the ground of unsuitability. My reputatign for incorruptibitty saved me

from a difficult job.

The proposal to appoint me as additional gecretary, agriculture

and community development was duly sent by the cabinet secretary T.

Swaminathan, after the approval of other members of the Appoint-ments Committee of the cabinet, to the Prime Minister. The file didnot, however, reach her for a long time. I was assured by the agriculture

secretary, as well as cabinet secretarf that they had reminded the

secretary to the Prime Minister seveial times but in vain. But the

prompt promotion of my juniors and the unusual delay in my case,

persuaded me, contrary to my usual plactice, to call on the secretary

to the Prime Minister and represent lny case. I rang up his private

secretary for an appointment. To my utter surprise, the private

secretary, having learnt from me ths rpurpose of the appointment,

broke into Tamil and advised me that it would not help me to see the

secretary to the Prime Minister on this matter. I was greatly upset but

could not understand what P.N.Haksar1, who was then the secretary to

the Prime Miuister, had against me. Aiccording to the story that was

going the rounds, Haksar, under the ihfluence of some technocrats,

was annoyed at my attitude towards solne ofthem and wished to show

me, the generalist, my place in the scheme of things' This was a

reference to my opposition to the nomiFation of Dr H.N.Sethna of the

Atomic Energy Commission to the Bqard of FCI preparatory to his

IAS at the Centre, 196472 75

appointment as chairman, and the complaints against me carried by

him to Haksar on behalf of Dr Chakravarty and Dr Mukherji of the

FCI. Another rumour attributed Haksar's sitting on the file to his

inclination to see ryore truth than was warranted by facts in the

fulminations of his friend Bhupesh Gupta of CPI in the matter of drug

prices. Still another rumour ascribed the delay to Haksar's reaction to

ihe dispa.agiog comments in a leading newspaper -that the first

beneficiary oif the Crash Scheme for Rural Employment (CSRE) would

be the additional secretary. For the purpose ofthis narrative, it is not

necessary to analyse the facts underlying those stories' It is enough to

note that in our systern" one man in a crucial position can block

decisions for whatever reason he fancies. Finally, the proposal was

approved in May, 1971 on the intervention of Professor P'N'Dhar of

the prime Minister's secretariat, who had been approached on my

behalf by a close friend' The agriculture minister, Fakruddin AliAhmed, who had been presSing for the approval of my appointment

got a terse reply from the Prime Minister, stating that although the

iroposal to appoint me as additional secretary had since been ap-

proued, the success of the CSRE depended on several other factors'

While my immediate problem was thus solved and I plunged into

the work of t-he new department, feelings of sadness and injustice did

not leave me for a long iime. I was torn between the desire to confront

Haksar and the thought that such an exercise would be futile' At last,

some months before I prepared this manuscript, I met Haksar, as Ithought it unfair to put down the factswithout knowinghis version' This

was iry first meeting with him, as I had had no occasion to meet him

on official business or otherwise, when both of us were in service' He

said that although he remembered me quite well and had a good

opinion of me, lie could not recall the circumstances of my delayed

promotion. He asserted that holding up the file, particularly after he

was a party to my empanelment, was not his style of working' Thus the

mystery of the bottleneck remains unexplained'

The purpose of my relating this instance in detail is to show how

secret and indeterminable forces came to operate in simple and

straightforward personnel matters, with the result that the established

chan"nels came under cbntempt and honest and self-respecting officels

felt compelled to resort to sdaish through friends, even to get their

76 Two Administlaton : Iiteraction Between'Ics and IAS

rightful dues. I believe, along with several others, that Hal$ar largelycontributed to this deplorable state ofaffairs. He w'as well-known foradvocating a concept of commitment Which could be interpreted inmore than one way and for deflating dhe time-honoured principle ofpolitical neutrality of the bureaucracy aad its right to free, frank andobjective advice. Little did he realise that he too could fall for givingfrank adGce, under the miasma of codmitment.

As additional secretary communiliy development, I was in chargeof several poverty alleviation prograpmes: CSRE, Small FarmersDeveloprrent Agency (SFDA), Malginal Farmers Development,dgency (MFDA) and Employment of labour in Chronically DroughtAffected Areas. The last mentioned prqgramme was renamed DroughtProne Areas Programme (DPAP) at ny instance, with a pointed focuson schemes designed to make drought.prone areas droughtrproof, tothe extent possible, by using available technolog;r. It was as a result ofthis reorientation. that I was able to sanction funds for the electrifica-tion of a part of Jodhpur district where series of deep tubewells weretried successfully and an abundant soufce of good water discovered inthe desert. Great einphasis was laid ou mini-irrigation projects, per-colation dams, pasture dgvelopment and afforestation. I must acknow-ledge the help and encouragement I rpceived in this matter from DrB.S.Minhas, Member Planning Commission, who succeeded DrB.Venkatappaiah. With his help, I was able to introduce a new schemecalled Pilot Intensive Rural Employrneflt Project (PIREP) in 15 blocks.It was conceived as a research-cum-action project, for testin! thehypothesis that demand for labour in rural areas varies according toseasons and special employment programmes must be framed so as tomatch the demand for labour with its supply in different seasons. It wasthought that the Pilot Project would throw up usefrll lessons for im-proving the CSRE and provide addltional employment when andwhere needed. It differed from CSRE in two respects: "Firstly, whilethe latter was spread thinly over the ontire district, the former con-centrated over the smaller area of a block with a view to achieve centpercent coverage. CSRE attempted to benefit about 100 persons in ablock on a selective basis at the rate of one per family, but PIREPsought to provide employme nt to all eligible persons in the block in thethird year, thereby facilitating the strtdy in depth of the problems

IAS ot the Cente, 196+72

underlying the full utilisation of rural manual labour for development.

Secondly, since different people needed employment at differentperiods, PIREP took this into account and tried to coordinate the

supply of labour for varying periods with the demand for labour arising

from different types of works and provide work on that basis, while

CSRE had no suchcoordination or specific linkage." It was a three-year

project, beginning in November 1972. I conducted a carefully prepared

training course for block officials in charge of PIREP and toured the

selected blocks for removing the usual bottlenecks and doubts beforeimplementation. Unfortunately, I had to leave the ministry just when

the projectwas tobegin.It ran its course and the programme evaluation

unit of the Planning CorLmission recorded some positive conclusions

after a detailed study. But no follow-up steps were taken and my

original hope that the C.D.blocks could be activated with the help ofwork-oriented employment programme had to await better days. It isnow known that the interest in this kind of programme was revived

during the Janata period, culminatingin the Integrated RuralDevelop-ment Programme, TRYSEM and the National Rural Employment

Programme in the eighties,

During this period, there used to be a Central Coordination

CommitteA (CCC) in the Planning Commission. Member, Agriculturewas the chairman and the cabinet secretary, finance secretary, and

agriculture secretary were its other members. Its decisions were

deemed final and finance secretary's consent in the Committee was

treated as the formal concurrence of the finance ministry. This comomittee was first constituted when Dr Venkatappaiah was the Member,Agriculture in the Planning Commission. This arose out of his general

effort to bring together the concerned officers of different ministries

on an informal basis at lunch so as to promote mutual understandingof differing points of view I utilised this forum to great advantage.

According to Sivaraman, who succeeded Minhas, the CCC had to be

wound up at the instance of the agriculture minister who seemed tohave thought of it as an infririlement of his jurisdiction rather than a

catalyst for the success of his ministry's programmes, I have, however,

recommended the revival of this forum in the reports of Khadi and

Village Industries Review Committee (KAVIRC, 1988) and the Work-ing Group for Khadi and Village Industries in the Eighth Plan, which

77

I had the privilege to chair. To the of my knowledge, there is noforum at present to take a coor view on Ihe problems of villageindustries like those under the KVIC. handicrafts, sericul-ture, etc., which are dealt with bv di ministries of the Govern-ment of India.

Secretary, Agriculture, T. P. Singh Sr. ofthe Bihar cadre of ICSgave me special assignments outsider the communitv develoomentdepartment, such as leading review teams to the states. I led the teamfor Andhra Pradesh under the Emergency Agricultural productionProgramme (EAPP), which was inten{ed to compensate in the rabi of1971 for the loss of crop due to droughl in kharif of that year. As teamleader, I had the power to sanction, on the spot, minor and lift irrigationschemes and otfur proposals that could immediately increase produc-tion. I was also called upon to scrutini$e the crop reports received inthe mlnistry's economics and statistics division from Andhra pradesh,as the reported figures did not tally lvith other known facts. On apreliminary enquiry at Hyderabad, I found that the field reportingsystem had broken down completely. A few years before, a chiefminister decided to doctor the figures on political considerationsbefore they were reported to the Centro. As a result, the state director,bureau of statistics and economics and ftris field officers saw no reasonto follow the strict criteria laid down ahd supervision became slack. Ielicited this information after persistertt questioning. The truth cameout only when I asserted that if the government failed to review thereporting system and continued to give doctored crop estimates, Iwould be compelled to recommend a crJt in the allocation of fertilisersand funds for irrigation and other agriculture-related projects on theground that the state had reached saturhtion point and higher produc-tion would not result from higher alloc4tions. This threat worked andthe state govern$ent took the necessary steps to improve the system.That the CM at that time was a person different from the one whointroduced political doctoring did, of course, help. This was the lastassignment I completed before leaving the ministry.

4

Chief Secretaryn Orissa, L972-74

My tenure as Additional Secretary,-Community Development was

cut short on the iqsistence of Chief Minister Orissa, Nandini Satpathyto revert me for taking up the duties of chief secretary. When I assumed

charge in November L972,I looked forward to good relations with the

CM and a satisfactory tenure till superannuation in a familiar environ-ment. But my hopes were soon belied, as would be seen from thefollowins narrative.

When I arrived, Smt Satpathy was busywith her election campaignin Cuttack. She was trlng to enter the Assembly before the statutoryperiod of six months was over. In fact, my first call on her was in herelection office in Cuttack. When I asked for special instructions, if any,

she referred to the cabinet decision on state trading in kendu leaves

and the doubts raised subsequenlly by some friends. Although she

wanted me to examine this matter carefully and expeditiously, I got theimpression that she was contemplating to dilute the decision by im-plementing it in stages. However, being familiar with the sensitive

nature ofthe subject and its potential for political corruption, I decidednot to let go of this opportunity for establishing a viable state tradingsystem, as per the Orissa Taxation Enquiry eommittee's recommen-

dation. Accordingly, I worked fast and made foolproof arrangementswell before the ministry could develop second thoughts on one groundor another.

80 Two Administrators : Interaction Between ICS and IAS

Satpathy won the Cuttack L but at a high cost, as uras

widelv believed at that time. to one report, she took the helpof some officers who were known to be corrupt. It proved to be apyrrhic victory as barely two months , her government felldue to large-scale defections. Presidont's rule was imposed. When Itook leave of her, I requested her to do me the favour of not sendingfor me thereafter as it would place me in a dile--a. I explained thatif I responded I would be accused ofb4ing close to a political party andthat if I did not respond, I would be gutrlty of showing disrespect to her.She laughed and asked if it wouild be alright if she dropped iaoccasionally for a cup of coffee, I replied that she would be welcome.I was then living in a hogle just across the st;eet from her. Althoughwe parted amicably, I fo1rffil in retrospect that I did not endear m5nelfto her through this request. Soon, sho began to create difficulties forme with the help of some corrupt officers. I was accused of corruption,loose morals and other misdemeano rs. A petition alleging corruptconnections between me and some keddu leafmerchants and clandes-tine contacts with Mahatab, thet an bpponent of the Congress, was

handed over to the Union Home Midister, Uma Shankar Dikshit, inthe residence of Satpathy by member,s of the Youth Congress. I was

severely criticised in the press for alleged anti-Oriya actions when Iproposed some Oriya IAS officers for deputation to the Centre underthe rules. Deputation of non-Oriya officers was also criticised as

anti-Oriya. I began considering the possibility of referring some ofthese.critical reports to the Press Council and reviewing the release ofgovernment advertisements to the concerned paper, Prajatantra.Thereupon, Mahatab, its editor, wantdd to see me at a special rendez-vous but I declined, stating that he codld see me only in my office or inmy house, as he might choose. He.tlien called on me openly at myresidence and assured me of fair reporting in his paper in future. Hekept his word. This was the basis of thd allegation of secret liaison withMahatab. According to stories currelt at that time, a corrupt officerclose to Satpathy tried to employ black magic against me and to let adeadly cotira into my house. The joke was that the snake-man found itdifficult to instruct the snake to recognise the chief secretary! Ananonymous brochure containing wild allegations was printed and cir-culated at the Bhubaneswar bus stand. It opened with the statementthat I was so indulgent to my wife that I was supplying Scotch to her

Chief Secretary, Oissa, 197L74

liberally and she was rolling on the floor, drunk. When I conveyed thisto my good wife, she enquired if Scotch was a new brand of coffee.'Iwas told that her well-known innocence and teetotalism proved the

undoing of the pamphlet as the readers refused to read further. Asmentioned earlier, a criminal complaint was filed in the VigilancePolice Station, Bhubaneswar, alleging corruption in the Rayagada LiftIrrigation case. All these attempts were meant to unnerve me andpursuade me to do the bidding of Satpathy and her coterie of cortuptofficers or to get out of Orissa. The central home minister U.S. Dikshitand his minister of state K.C.Pant, who had known me, confided thatSatpathy was pressing for my transfer. But thanks to the support ofGotprnor B.DJatti, who had great confidence in me, I withstood theattacks.

Friends have told me that I was not very effective in the field ofdevelopment and that I did not fulfil the expectations raised on the

basis of my earlier performance as additional development commis-sioner. This is a correct assessment. I found it impossible to revive themood of the pre-1964 years and concentrate on development ac-

tivities. The administrative atmosphqre was so vitiated that the majorpart of the time and energy had to be devoted to the maintenance ofroutine administration and chdckmating plans and intrigues of corruptofficials and their political supporters. Besides, the governor's keen-

ness to implement Satpathy ministry's schene of rrjviewing the perfor-mance of all those who had completed 50 years of age or 25 years ofservice and retiring those found unfit added to the turbulence of theadministrative waters. I took great care to ensure that the reviews werefair and just and the numbers to be retired not unduly large. Finally,seven officers were chosen for retirement. There was general agree-

ment that they were indeed'incorrigible and deserved the treatmentmeted out to them.I received an unexpected call from the ChiefJustice,congratulating me for the decision.

The IAS officer who was gunning for me throughout this periodwas, however, not one of those prematurely retired, for two reasons.

Firstly, Governor Jatti was in favour of leaving him alone, despite hisclose connection with at least one ofthe persons to be retired and his

own admission of corrupt behaviour during his earlier tenure as labourcommissioner. This aspect of the good governor has remained a

81

82 Two Ad.rninistratorc : ItTturaction Berween ICS and IAS

mystery to me. Secondly, I thought that hction against that officer mightgive rise to allegations of personal vendetta and might jeopardise the

entire exercise.

It is interesting to note how diver$e forces do come together. Atone stage, my old detractor, Bhupesh Gupta of CPI, returned to theattack under the guise of defending {adical land reform. He spoke

during the discussion of the Orissa Appropriation Bill in Rajya Sabha,

describing me again as the villain of the piece who was sabotaging

everything, together with Mahatab. I was supposed to have changed

some of the radical provisions of the Orissa Land Reforms Bill L973,

which was finalised by the Satpathy ministry. Having read the excerpts

of this speech and another statement df his at a press conference, thegovernor apprised the Union Home Minister of the facts and re-quested him to bring them to the notiOe of Parliament and refute the

unjust criticism. The governor wrote: !'The chief secretary had firmlyadvised that it would not be expedient to make any departure frorn the

decisions consciously and deliberately taken by the former ministry. Itwould, therefore, be a canard to say that he had tried to sabotage theprogressive policies of the former mihistry." The irony was that the

changes impugned by Bhupesh Gupta were, in factn suggested by the

ministry of agriculture on the ground df countrywide uniformity.

I was aware that Satpathy had trled to get me transferred even

during President's rule but the Centle would not oblige. When she

became chief minister after the Assembly clection in February 1974,

she renewed her efforts. She tried various methods to persuade me toget out. One crudemethod was toreject all the transfer proposals made

by me and pass down a complete set of alternatives for implementation.As the main purpose of this exercise whs to convey to my subordinatesher lack of trust in me, I countered by pointing out how every one ofher proposals was inappropriate and npeded reconsideration. This ledto a frank discussion and'an agreement that thereafter we would

discuss before commiting our ideas on 6uch matters to paper. It proved

to be an uneasy peace. After a few days, she gavo me an anonymouspetition against the chief engineer, national highways and wanted me

lo issue a snspension order on that basis. I disagreed, saying that

suspensionwas a serious matter and shbuld be ordered in serious cases

only, and that an anonymous petition $hould not be made the basis of

Aief Secretary, Oissa, 1972-74

such an order without ascertaining facts. She reluctantly arrlowed me a

few days to look into the allegations. On a quick scrutiny, I found themrather minor in nature, at any rate, not meriting suspension.Meanwhile, a story was going round that the CM was planning toappoint another ofhcer as chief engineer and that officer had promisedto pay Rs 3 lakhs as consideration. I could now have some idea of thereason for the precipitate action proposed bythe CM I was determinedto nip this matter in the bud as it did not rebound to the credit of thenew government which was only two months old. So, when I went backto CM with the facts of the case, I told her frankly about the rumourand advised against the proposed suspension and appointment, saying

that she would only lend credence to the rumour if she acted as

proposed and that it would not be in her long-term political interest.This made her red in the face but she abandoned the questionable path.

Similar differences arose in regard to the posting of senior police

officers, making her exclaim how she could carry on if the chiefsecretary himself stood in the way at every step. Inthese circumstances,I saw no point in continuing in Orissa and requested the cabinet

secretary, Government of India, to find a suitable berth for me in the

Centre. He kindly agreed and I proceeded on short leave on August30, 1974 pending a posting in New Delhi. V.S.Mathews, my immediatejunior, succeeded me. This surprised me because the CM had kept her

intention as a closelyguarded secret till the last minute and her decision

did not match her opinion of him, which she had often expressed, ever

since I joined in Orissa in 1972.

83

\

.'€: '

Secretary, Shipping &TransportrI9T4-77

I took over as secretary in the ministry of shipping and transportin the last week of September L974. At first, I was to have becomeeducation secretary. Nurul Hasan the minister looked me over andindicated his approval. But at the last minute, I was posted to theministry of shipping and transpori, as the minister, KamalapathiTripathi wanted to change his secretary, pimputkar. My early ex-perience in matters of road transport appeared to have qualified mefor this responsibility better than for education.

My detractors made a last minute effort to prevent my posting assecretary to the Government of India. A half-an-hour discussion washeld in Rajya Sabha at the instance of Bhupesh Gupta on 30th August,1974, the day on which I was to hand over charge as chief secretary. Itwas so timed, partly because B.D.Jatti, the Governor and rpy prorectorwas to take over as Vice-president oflndia and Chairman, Rajya Sabhathe next day. Ostensibly, the need for discussion, according to Gupta,arose out of the answer given to a starred question on ZZnd August,I974. The question related to a resolution said to have been passed inAugust, 1,973 by the IAS Officers' Association of Orissa, criticising theremqrks made by Bhupesh Gupta in the Rajya Sabha against the chiefsecretary. The government had replied that they had ascertained thefacts from the government of Orissa, that the president of the IAS

f

86 Two Admlnastrators :

Officers' Association denied having

Between ICS and AS

any MP at any meeting

and conveyed a copy of the passed at a meeting of the

executive committee of the

tion read as follows:

'nThe Executive Committee of the Orissa IAS Officers Association

expressed its distress over some derogatory remarks made on the floor

of Parliament against a Member of the Service and felt criticism of

individual officers who are in no positibn to defend themselves is a very

sad development which should be brought to the notice of the

authorities. It was resolved that a deputation from the Sxecutive

Committee should meet the Governor; convey to him the feelirg of the

Association and request him to take up the natter with the Union

Government."

Bhupesh Gupta contended that according to a,.other account of

the meeting K.Ramamurthy, a mem$er of the association sought to

move the following resolution at the rri eeting: "The criticism of officers

who are unable to defend themselves in the house is against all estab-

lished democratic and parliamentary practices... It is strange that even

though such senior officers of the State were criticised, none from the

treasury benches rose up to protest algainst such criticism, and that it

is still unfortunate that the Chair did not pull up the Member"' Gupta

described Ramamurthy as the crony of the chief secretary, and asserted

that the resolution, as well as the governor's letter to the Centre

(quoted earlier) were engineered by rue' Recalling his earlier criticism

in connection with Drugs Prices Control, he urged that I was not frt to

be appointed as secretary to the Government oflndia and wanted an

assurance from the government that I would not be so appointed'

A careful reading of the record of the debatc would show that

Gupta was in touch with Chief Minister Satpathy, got his information

from her and some IAS officers and timed his half-hour discussion with

a view to influence the government against me. The facts, however,

were that I was not even aware h 1973 that the executive committee

meeting was going to be held, I was trot present u1 156 6geling and Ih"4 oqllr;',g ti'do with whatever resoiution was moved and passed' To

dig up this m4tter and to bring it up in June-August 1974, just after it** koo*ln that I was soon to be nelieved from the post of chief

on April L1., tYl3. The resolu-

Secretary, Shipping & Transport, 197477

secretary, was clearly motivated. Although at one time I felt ihat thecentral government was not vigorous enough in defending their officersagainst unjustified remarks in parliament, I now have ni hesitation inrecording my appreciation ofthe Government oflndia for the mannerin which they handled the matter. However, I cannot help drawingattention to the changes in attitude over time. In L952,when the IA5Officers, Association of Orissa passed a resolution deploring unjus_tified criticism of my conduct as district magistrate, noi"ay otj".t"Oto it and in fact the Government of Orissa reiponded handsomjy; butin 1974 when a similar innocuous resolutionwas passed bythe Associa-tion, the Government of India felt it would have been better had thercsolution rrot been passed. (The deputy minister, home affairs saidduring the debate, nI can only say that they could have avoided this kindof embarrassing position.")

. I spent three years as secretary shipping and transport. Consider_ing the turbllence ofthe preceding years, thii period was comparative_ly. uneventful. I was lucky in having three good and undeistandingministers, Kamalapathi Tripathi, Urna Shank-ar Dixit and Dr G.S.Dhil_lon. They gave me the freedom to advise without fear or favour. I couldsee the political compulsions under which they had to adopt particularlines. of action despite my advice and I mu,.i sny to their everlastingcredit that they took full responsibility for their decisions. For someinexplicable reason, the Emergency did not drag me into embarrassingsituations. Perhaps I owe this.to ihe tact a"a-higt, standards of m!ministers. For example, when in the time of Uma-Shankar Oixit, thePrime Minister's secretariat started sending unsigned typed slips onsome controversial matters relating to Delhi Transport iorporation,the minister used to send replies under his signature to the pM herself.I coulddevote most of my time to items of constructive nature, such asimproving the working and the finances of port Trusts, speeding upport development projects, streamlining the operations of the Sfrippi"gDevelopment Fund Comrnittee, augmentation of the national fleet, th!fluldin-S_of the Indian Register of Shipping a classification society,Code of Conduct for International Shipping, development of traininjin road transport m?nagement and the ;taf,iishneni of new corpora-tions, the Dredging Corporation of India and the Road Construction

8S Two Adminisfiatot : Inleraction Benveen ICS and AS

Corporation, which made profits in the very first year' I shall elaborate

on some of them a little later.

During the major part of this peripd, there wa-s also a minister of

state, by nime u.tr'i.tr-ived. ge was arl executive of a leading shipping

;;-y in the past and had great inFights ln-t9 tfe problems of the

ioOortty. He was a late comei to polifics and- had not-yet learnt the

nrr".." u"a play-acting, characteriitic of a politician' We got on well

and he confrded in me how he was un{er pressure from the treasurer '

of;r" Coogr"., (P.C.Sethi), to raise fqnds forthe party' I advised him

to t ""p

tl"-"utinet minister (G.S'Dhillon) informed instead of me' It

turned out that Dhillon was not inclined to cut corners in the drive for

party funds. In one instance of purchase of dredgers from foreign firms'

Trivedi tried to favour one company against another in a rather crude

iurrn", and rush the mioister into accbpting its tender' Dhillon would

not be rushed and wanted me to e'xamine the case thoroughly' accord-

Lg to rules. f he company favotred by Trivedi had. the temerity to give

a iender without stating a specific amount but indicating that its price

would be less than u "".t"io ".o*t'

lts idea was to enable any figure

to be put in at the time of negotiationi so as to become the lowest and

thus quali$ for acceptance. Surely, thht company'srepresentative was

behaving as if he had already got the order in his bag' It was only on

-y ln."""t of total disquatdcation that he committed himself to a

aen rite figure. During negotiations he and another tenderer brought

J"*il"[ quotatlon; further' Although the final order went to the

iuuo*it" or iriu"gi, t n"a the sarisfaction of bringing down rhe price

substantially and following the corredt procedure' But' when after two

days I overheard at a dinn-r party that despite all the precautions taken

,nii "o.p*y had padded its quotadon sufficiently.to make a sig-

nificant contribution to the Congress party' I felt deflated and

wooaer"a how ignorant I was of the intricacies of the game and how

ineffective was my insistence on ruleg of procedure' The only point of

unsulliedsatisfactionwasthatthechosencompanywasthemostsuitable on technical merits and that since our fleet consisted mostly

of its dredgers, the purchase of some tnore of the same make facilitated

operations and maintenance.

One of the new corporations, tho Road Constructioa Corporation

was meant to take up;oUs in tne Uiddle East and North Africa' while

Secretary, Shipping & Transport, 197477 89

the other, the Dredging Corporation of India had its main focus onworks within the country. The latter.was established with a view tostreamline the operational or maintenance dredging in all ports, as wellas the capital dredging necessary for opening new bertbs or dock andto put these activities on a frm commercial basis. All the dredeers wjththe ministry and most of the others under the control of the poit Trustswere pooled for the purpose. New ones were purchased to fill the gaps,like cltter suction or hopper. Special coursei were organised with thecollaboration of Andhra University for training, u. iho." who werequaliffing for posts in the merchant navy would not stick to shorejobs.New dredging certificates were introduced for the first time in theexaminations conducted by the ministry. I can take credit for locatingthe headquarters of the new corporation in Visakhapatnam port,contrary to the prevailing trend to concentrate all such organisationsin B ombay Port. Minister Trivedi favoured Bombay in the fiist instancebut I persuaded him to change his view on the grounds that Bombayport was already congested, that the east coast neeed this organisationmore than the west, that Calcutta bristled with labour problems, andthat Visakhapatnam occupied a central place on the east coast. Theprompt offer of land and other facilities by B.K.Rao, chairman, VizagPort Trust, clinched the decision. The Dredging Corporation was alsogiven an early breakthrough in foreign operations by encouraging it totake up a stevedoring contract in yambo port in Saudi Arabia. TLiscontract continued for three years or so and proved to be profitatrle. Itwas my aim that the corporation should grow fro:n strengtL to strengthand provide dredging services to the neighbouriog couotri"s in com-petition with European dredging companies. This idea came to me onmy visits to U.K. in connection with the meetings of InternationalMaritime Organisation (IMO). It is still to materialise. I have no doubtthat the corporation has great potential.

The Shipping Development Fund Committee was set up under theMerchant Shipping Act when Lal Bahadur Shastri was thc minister-in-charge. More than any other s,ingle factor, this Fund was responsiblefor the increase in the national tonnage over the years.It providid long_term rupee loans to ship owners on easy terms for the purchase of shipsfrom indigenous as well as foreign shipyards. My main contributionsare three. First, I made the.committee nearly self-suffrcient in respect

90 Two Administraton : Interaction Between ICS ond IAS

sf i1s ndministrative expenditure by a small fee on the loanees

and by improving its on the boards of directors of

borrowing shipping companies in thF interest of better monitoring'

Second, with the help of the ministry W.S. Tambe its joint

secretary in particular, I managed a special scheme called SAFAUNS

to draw upon the funds available with commercial banks for ship

acquisition. In this exercise, I was able to convince the balkers that

examination by the committee of eaph proposal was no less profes-

sional or thorough than that by the bank's own team and that our

decisions could be adopted without druch ado. This brought me new

friendships which proved useful when I entered the banking world

later. Thi chairman of State Bank of India thought it fit to hold a

farewell party in Bombay for me when I left the miniltry on leave,

preparatory to retiremetrt" without even a hint of my return to active

iervice in the Reserve Bank a few months later. The third was the

expansion of the scope of the SDFC t0 cover fishing trawlers' This was

done in collaboration with the agriculture ministry who provided the

necessary funds. The committee and I provided our expertise on

sanction and rianagement of loan$. T.S. Ikishaa Murthy IRS as

secretary of the Committee was of grreat assistance. I must add that Iresisted the move made by my friend Ajit Mozoomdar, secretary

expenditure in the finance ministry to close down the SDFC and to

transfer the ship loan function to a financial institution. His main

points were that whatever may be tho origin and history of the SDFC'

it should be reviewed in the light of the present structure of financial

institutiom, that the ship loan function was essentially that of a financial

institution and that secretary to government in his capacity as chairman

should not expose hin:self to the risk dfbeing pressurised or questioned

for political reasons. My main points were that no financial institution '

waJyet ready to handle this specialised business, that a certain degee

of flexibility was needed in the present state of our shipping develop'

nent and that no secretary worth his salt should be afraid of motivated

criticism, The reader may be aware that the SDFC was replaced by a

subsidiary of ICICI in the eighties. Tlhe shipping scene had, of course,

undergone drastic changes by then.

The Indian Register of Shipping (IRS) was a new venture which

ain,ed at utilising the compete techinical manpower'in the countryfor

Secretary, Shirying A Transport, 197477 9t

::tabJishi-ng an indigenous ship classification socieg on the lines ofLloyds of U.K. Classfication is essential under the Laritime regula- ,

tions and a pre-requisite for insurance ""d

-;;;;.d;perarion. Mypredecessor had left a detailed note on this matter. I took it upseriously, obtained all the ne.cessary approvals and got the IRS goingin a shortperiod. The establisned societies offoreili origin, Li;ydiNorske Veritas and American Bureau of Shipping Jere not happy atour. moves and tried to put obstacles in ou, wiy, i managed to breaktheir opposition through skillftrl negotiations. Norske Veritas of Nor_yuy I* the fust to sign a collaboration agreement for joint or dualclassification. The others followed after i interval. Lloyds was thetoughest of the three. It made a concrete propor"l fo* loiot u"otor"with the name Lloyds India but I rejected ii. dualclassifrcation, I mayadd, was essential in the beginning for gaining acceptance in theshippingworld. Capt. J.C. Anand of the Io-diuoJt"u_.ilip Company,

I19, *.u. also Chairman, Indian National Shipowners, Association(INSA) was of very great assistance in setting tire IRS on its feet andpursuading the shipowners to get their ships-classified with it, erren ifit costed a bit more.

There was, of course, no dearth of myopic shipowners, who heldout and argued that there was no need for an indigJnous classificationsociety and that they would continue with single clssification throughthe foreign frms. Vasant Sheth of Great Ei'stern Shipping who wlsknown to be- a shrgwd operator, and who would periodically waxelo{uent on the glories of Indian shipping, kept awayihe tongest fromIRS. He was, of course, selective in his love for things Indian!

IRS was formed as a charitable cornpany under Section 25 of theIndian Companies Act and the day-to-day management was vested ina-committee of management consisting of technical experts. I was thechairman and Capt. Anand the vice-chairman. We were lucky insecuring the services of H.S. Rao, a Lloyds suryeyor. His devotion toduty, technical competence and commitment to iniigenous institutionsw.gre of

.a high order. In spite of a heart problem- he worked hard,

attracted competent Indian personnel and organised the classificationoperations so' fast aad so well that

"u"ryorri, including the foreign

comTetitors, were_ pleasantly surprised. I provided tlh" o"*rrurypolrcy support. To break the deadening fssting of superiority oi

n

foreign classification' I took a seriolrs-view.in the lrse :t " thtll

Jr".ril"J uy ,n" Lerican Burear\ wliich ran intg trguble :t t:"-if.?I

;;;;; ;iltf'*tion and made the $ureau apologl:.-dT1{'-h:fee. Altogether, IRS was a very satisfaPtory venture'. ti hit :hf .*i:;i;;;6;;ithe speed with wlicli it has estatlished nt"I-t tla"..ii*tioo businesi and branched put into industrial services and

riip- ""*,-oi.n has been acknowQdged with."pf::?:1%H *

;;*-;;;.;cording to the l5thA4nual Report of IRS for 1989-90'

IRS-class fleet stood at 643 ships; totalling 4'65 mjllion Gross

n"gtr"t"a f""nage (GRT), of which 384 with 2'24 million GRT was

ot-.-iogl" "t"...

ThL may be compared with the ligur es of.y\ll ',!e.""ooi y"". ,io"" inception attd my last year of chairmanship: 157 ships

*iiiiJi -iUi"" GF'.T (42-6Vo ofthe national fleet) , of which one vessel

;;t;"t of single clasi. Ins comple{ed statutory.load line survey for

igo-u"rr"l.. It ivas only the Indian company which vras recognised as

" *-f""" authority ior offshore warranty assignments' As regards

industrial services such as inspection and certification of land-based

plant and equipment, it has earned oontracts from petroleum' petro-

"h.-i""I, chemical power, space and nuclear industries'IRS became

a member of the Intirnational Association of Ctassification Societies

in 1991 and earned the capacity and necognition for expanding shgle

classification in its own right. I ierive aonsiderable j oy from the steady

progress of IRS'

Another shippiog matter in whlch I took great interest was the

Code of Conducl iecommended by the UNCTAD Conference a year

or two before I joined the ministry. Indian representatives played an

important part in the evolution of the code' C'P' Srivastava' former

chairman, SUippi"g Corporation of lndia and director-general Inter-

national Mariiimebrganisation (IMO) presided over the conference

uid L.M.S. Rujr""t of SCI was the floor leader' According to the code'

L.iug" of goods in international trade should be shared by the

"*..,1"* anf, importing countries i+ the proportion of 40:zl0' leaving

the balaice of 20io the ships of other nations' The code would come

i* fo."" only when countries ownilg a prescribed percentage of the

world tonnage ratifre<l it. Several Western countries, with the excep-

tion of WesiGermany, who had beon carrying a large share of traffic

io their natiorral bottoms, dragged their feet, to the detriment of the

Secretaty, Shipping &. Transpo4 197477

interests of the developing countries. To break the deadloclg I tookthe initiative to convene a special meeting in Geneva, along with WestGermany, for canvassing the ratification and persuading our govern-ment to be among the first to ratiS the code, in the interest of main-laining our credibility in the international fora. I had to retire soonafter. My stratery seemed to have taken some time to work and thecode came into force a few years later.

As regards purchase of ships from abroad and consfruction ofships in India to meet the plan target, my main emphasis was onensuring that prices were reasonable and the agreed dates qf deliverywere adhered to as far as possible, As part of tl-ris effort, I had tonegotiate, within a few months of my joining the ministry claims ofescalation with shipyards in Rumania, East Germany and Yugoslavia.I visited the first two countries, along with Admiral Nanda, chairmanof SCI. I believe I was able to settle the final prices to our nutualsatisfaction and obtain the approval cf the cabinet.

Iqdigenou-s shipyards like Hindustan Shipyard at Visakhapatnamwere also caught in a cost crunch. Most of the contracting parties wereagreeable to the formula I evolved. Even Vasant Sheth of GreatEastern Shipping who had proved to be refractory in the beginning,yielded finally to my persuasion. Later, however, he alleged that I hadsubjected him to intolerable pressure during the Emergency of 1975-77. The truth ofthe matter was that I did threaten to institute enquiriesinto the reported diversion of funds released by SDFC for acquisitionof real estate, contrary to the conditions of the loan. This threat was byno means illegal or high-handed. Vasant Sheth was one of those whobelieved that what was good for his company was good for the country,If I remember right, the pricing formula was also revised. Having thuscorrected to some extent the price factor, I tried to fill the order bookof Hindustan Shipyard and Cochin Shipyard (built with Japanese helpand inaugurated in my time), on the approved principle of rnatchingacquisitions from foreign yards in a certain proportion. Ia this context,I attracted the attention of the department of defence productionwhich had under it Garden Reach and Mazagaon shipyards. I extendedto them whatever help I could and formed new friendships.

93

94 Two Admhistraton : Inkraction Between ICS and IAS

Several polt development projedts were in various stages of

developmentl when I took'over as secrptary it L974. As chairman of

the steiring committees of the projects, I had to monitor their progress

from time to time and remove bottlendck in consultation with other

ministries and engineering firms in the public and private sectors'

Vizag Outer Harbour, Haldia, Tuticotin, Goa and Mangalore were

some of the projects commissioned ahd completed in my time' To

Brigadier Narula, an engineer and development adviser and his able

team, I owe my understanding of the technical complexities of the

projects. I recollect the hectic pace at which work was iarried on to

L""i ttt" target dates for the export of iron ore from Kudremukh and

the import of oil for the pipeline to nrbrth India, respectively' Along

with thise proj ects, new lighthouses were also built under my guidance

at Madras, Goa and insaurashtra. Thelast one,I remember, was rather

sophisticated.

Finances of ports also received my attention. Sceintific studies

were initiated to calculate the costs of turn-round of ships, crane

operations, etc. and the various charge6 were rationalised on the basis

of these findings. I remember how a crisis arose in Vizag Outer

Harbour -- meant mainly for the export of iron ore to Japan -- when

MMTC, the exporting agency, in its roluctance to share equitably its

margin with the Port Trust, out of the all-inclusive price of iron ore'

Japan threatened to call off its ships, ifadditional levies were imposed

and a special mission had to be sent to Tokyo for settling the dispute.

Finally, the Port Trust got an increased rate, though not to the extent

originally planned. In all these exercises, B.K.Rao, Chairman, Vizag

Port Trust and S.K.Comal and V.R.Mehta, both of the Indian Railways

and special officers in the ministry we4e of great assistance. Rao rose

to be Secretary, Mines; Comal became Finance Director, Indian OilCorporation and Mehta joined the AEian Development Bank as ad-

viser.

In the area of road transport, with which I became acquainted at

the beginning of my career in Orissa, my activities consisted mainly of

coordinating the nationalised road tiansport services in the states.

There was an association of all these public undertakings and I was its

president. The association had evolved procedures for entering into

supply contracts with selected firms for spare parts and stores required

Secretaty, Shipping & Transpo4 197477 95

by the rnembers, with a view to ensuring quality and reasonable prices.Some kink had developed over time, which I got removed. I alsomparted stability and congdence to the association by enabling it toacquire office premises and by promoting greater participation by therepresentatives of the states in de cision-making. i was so impressedwith_these arrangements that I recommended a similar association andsimilar purchasing procedures to the informal group of port Trusts.But,due to vested interests, I could not accompliih this fully. Althoughthe informal group became a formal assocladon, the port Trustsdragged their feet in regard to stores purchase procedures.

The association of state road transport undertakings maintaineda research and training institute in pune, caued centra'i Institute forRoad Transport (CIRT). I tried to make this institute problem-oriented and capable of providing consultancy to the state undertak_ings on matters of interest to them. At my instance, it established acourse and an examination for new entrants to the road transportundertakings, so that the latter could recruit better personnel. Onceagain, I wanted to carry the example of CIRT to the port Trusts anddevelop the nascent Institute of port Management, set up by CalcuttaPort Trust, into an institution of excellence, if necessary with interna_tional assistance. I did not have enough time to pursue t'his idea. I nowunderstand the Calcutta Insitute has grown over time, though not onthe model envisaged by me.

I recollect an incident in which the Meghalaya minister oftransport, Pugh, approached me for settling a seven-year dispute with1::u- 9n _the

sharing of permits on rhe Guwahaii_shillong ,out".Although the central government had powers under the law to settlethis inter-state dispute, it w_as kept pending for some inexplicablereason. I was able to settle this matter to the satisfaction of both theparties, in the presence of Dhillon, the Union transport minister. Ajocula-r remark, referring to an extra permit to Meghalaya at the fagend-ofthe meeting as,one for the road,, brought nie aninvitation tococktails by Pugh. To his surprise, I attended but stuck to myteetotalism. We became good friends and he invariably called on mewhen he visited Delhi. I managed to retain the goodwili of assam too,as was evident from their unfailing

"ou.t".y uod warmth towards me

during my subsequent visits to the state.

96Between ICS and AS

Road transport figured in the 'ftray Thoughts' announced by

Indira Gandhi in her sfeech soon aftdr the declaration of Emergency

in the form of two of the twenty-two points, national permits and octroi'

il;ii;;;;;."mparativelv simple an{ was implementedimmediately'

;;t"d; the second, ho*"u"t, no satisfactory solution,:"ttd.-b:

i"rta?".pit" several meetings at the flevel of minister. and the cabinet

;;;;fu"st everyone aleed onthe needto.abolish octroi inviev

"fli, -i"y ttaesirable features but t[ere were {ffi:ti*: * h t:

"o-p"n.uL the urban bodies which relied on it for their revenues'

Additional surcharge oa sales tax for rirban local government purposes

was mooted by so,ie. Madhya nradesh even promulgated an Act but

thisdidnotcoovioceotherstateslikoMaharashtr4whereoctroiwas

floating population in the cities.

animportant source of income for Bombay' the metropolis' I suggested

thai tie solution might be found not by abolishing octroi altogether but

t*y t"-""itg i . objlctionable featurds such as gates, stopping of road

tiaffic for hlours and the attendant corruption' My idea was to make

the commercial lorry operator and the booking agent the collectors of

octroi, in the same manner as the recognised dealer is.the collector of

;;il;* by devising a suitable wayrbill and eliminating some of the

l"a-f"uiu.!.. t sublitted a note to the Committee of Economic

S""r"turi"., after holding discussiorls with the representatives of the

operators and booking agents. But I could not convince my colleagues

ul "oUoay

would tru-st ihe operators or agents' The matter is still

p""af"e. In the meantime, .-;w urban bodies ha-le resorted to octroi'

as tt is Is the only known method of taxing the vast numbers of the

The director-general of the roads wing of the ministry' M'S'Marya'

held the rank of additional sec,etary. My role was limited in this wing'

I recall three matters which needed my intervention' The fust was the

cadre rules and the discontent prevlailing among the engineers of the

Wing about their seniority. This was a legacy of past recruitment on

diffe-rent occasions. The writ filed by some aggrieved officers were

Ji.po."a of in my time and the seniority list frnalised in accordance

;AA" court oriers. This had to be submitted within a prescribed

'J"i". irti. was complied with, after giving ample opportunities to the

affected officers to represent their viewpoints' I managed to avoid the

uruui uff"gutlo"s of favburitism made on such occasions' The second

Secretary, Shipping & Transport, 197477 97

matter related to the levy of tolls at new bridges on National Highwayscosting Rs 25 lakhs and more and a special provision had to beintroduced in the relevant law. The third was an-innovation made forcreating a Central RoadResearch Fund with apart ofthe receipts fromexcise and customs duties on some petroleum products. I tried topromote, with the help of this Fund, sorne new ideas likb creation ofrest facilities on selected highways for automobile users and moder-nisation of the bullock-cart that cuts up the road surface. I was greatlyimpressed by the work done by prof Ramaswamy of the Indian Instituteof Management, Bangalore on the bullock-cirt and the bullock. Ihelped convene a conference to evolve a multi-disciplinary approachto the bullock-cart and the bullock with a view to improving til; treadof wheels, fitting them with ball-bearings for efficiency, redeiigning theyoke, increasing the load, raising the draught power, diversi$in! theshape of the cart for different uses, etc. In my opinion, this work is stillincomplete and needs concentrated attention as this ancient mode oftransport and the lowly animal power will be with us for a long longtime.

Thank to my predecessor pimputkar, the O & M as well as theroutine work of the ministrywere very well organised. I maintained thesystem in toto and made full use of the weekly reports of receipts anddisposals,_weekly meetings, lists of pending files, etc. gy colliaguesused to tell me that the weekly meetings were made more interestineand useful through the participatory style I adopted. They were oclcasions for dialogue rather than for inquisition. In a[ these exercisesand in managing my time, I was ably aisisted by my personal staff.Ujagar Singh, my private secretary and R. Krishnamuithy, mypersonalassistant were the best of theh kind that I had come across in my entirecareer. Their patience, tact, skill of anticipation, timely caution andloyalty made my task easy. They used to meet me, even after mvdeparture from the ministry as friends. Ujagar, who retired soon afterme was in touch with me till recently from his village house in Hoshiar-pur district.

With the victory of the Janata party in the election of 1977, MorarjiDesai became the Prime Minister and he kept the shipping andtransport ministrywith him, pending the e4pansion of the cabinet. Thisarrangement lasted till mid-August 192, when Chand Ram took over

98 Two Administraton : Inleraction Beflveen ICS and IAS

as minister of state with independent dharge. By then, I had already

been sanctioned six months leave prepafatory to retirement with effect

from 2nd September,1977. During the two weeks I spent with Chand

Ram, I tried to brief him on the work of the ministry and highlight the

urgent matters. I left a detailed note fot my successor as was my wont

from my Orissa days.

During Desai's tenure, I had to malqe arrangements for the succes-

sion to Admiral S.M.Nanda in the Shipping Corporation of India. This

was a prestigious post and had somethit-rg to do with our international

image in view of the corporation's world'wide operations. I recom-

mended, with the approval of the Public Enterprises Selection Board,

the appointment of Rear Admiral Kiishen Dev of Garden Reach

Shipyard as chairman and managing dipector. But to my surprise, the

PM ordered the splitting of the posts aud nominated an ex-member of

Parliament Raghunath Singh as chairman, while approving Krishen

Dev as managing director. I resubmittod the file advising against the

splitting, on the ground that the creatiqn of two power centres in the

corporation would lead to friction and prevent smooth functioning'

Morarji stuck to his order. It appears that he had already promised this

plum post to his friend, Raghunath Sirtgh, whose only claim to it was

that he was sometime chairman of the National Shipping Board during

his previous tenure as member of Parliament. tr must add that in

advising against the splitting of the post, I was influenced by the

previous history of factious quarrels amlong the directors ofSCI during

the transition from C.P.Srivastava to A'dmiral Nanda in 1973'74 ardthe diffrculties created at that time. Fortunately, the personalities

involved on this occasion were rather different and by and large belied

the apprehensions I entertained while leaving the ministry. It was said

that the PM was annoyed with me for the resubmission of the file and

this fact was responsible for his reddiness to let me go on long

preparatory leave, contrary to the usuatr practice ofrefusing such leave.

I did not believe this story and put down the sanction of leave to the

well-known rigidity of Morarjibhai in regard to rules' His anxiety to

provide a secretary's berth to his former private secretary and

favourite, S.N.Ranade might have acted as an additional incentive.

Strangely, some friends thought of me as a victim of the Janata rule, on

Secretary, S hipping & Transpox, 197477 99

:f T":. of rhe above facts. I did not, however, entertain any suchthoushts.

. For about 1.2 days in December, 1976 there was a short interlude,when I also acted as adviser to.the governor of Oris.a, oo the resigna-tion of the Nandini Satpathy ministry and the imposition of president,srule. This is perhaps the shortest duration of iresident,s rule in anystate. I mention this only to show how I was suddenly pulled out of ameeting of_ the planning Commission at noon and'givcn marchingorders to Bhubaneswar, to act as adviser to the governo"r. Some friendsin the Congres-s party congratulated me, saying ihat I could now avengemy departure from Orissa in 1974. Mahatab,s 6r iya paper, prajatantra,commented how my car entered the Raj Bhavan ty one gate whileNandini Satpathy departed by another. Stme Cong.ess leaders triedto pe_rsuade me to stay on as chief secretary, to lend c-olour to the event.Smt Satpathy herselfenquired whether thire was any truth in the story.!n ry Rart, I never had any feeling of vengeance. Never did I entertainthe idea_ of_ returning to Bhubaneswar as chief secretary. I alwaysviewed this incident as one in which a serviceman performed his duty,as given to him, to the best of his ability.

6Deputy Governor, RBI, 1978-19g3

In the third week of September 1977, my wife and I left New Delhifor Hyderabad, which we had earlier chosen for our stay after retire_

1e1. In 1"969, I had bought a house with a rhbusand square_yard plotfor Rs.75,000. That was soon after the recurrence of tire eye trouble,when I became greatly apprehensive of my future health and decidedto acquire a roof of my own. I raised the money partly from the housepurchase loan scheme ofthe government of Orisia, and partlv from mvprovident fund and topping up loans from friends. The gwernmeniloan_was still outstanding in 7977 and,was to be adjustedlgainst thedeath-cum-retirement gratuity due to me. Undei the rules, I wasentitled to the maximum pension of Rs.1000. Although all my fourchildren were well settled by then, I was not sure if I could manage withthis paltry sum, my savings in the form of Unit Trust certificaies notbeing substantial. I was in need of some assignment which could fetchme a regular income for some more years. It was in this predicamentthat I received a call from H.M.patel, the finance ministerin the Janatagovernment. He wanted to see me. Soon after my meeting with !rim. Iwas offered the post ofdeputy governor, ReserveBank oflndia. I tookvoluntary retirement from IAS on January 1", 197g, about two monthsbefore superannuation, as required by convention andjoined the RBIon the same date.

I owe my appointment as Deputy Governor, RBI to the recom-mendation of Dr LG.Patel who had taken over as Governor towards

102

the end of 1977 and was looking for a sdnior IAS oficer with experience

in agricultural credit and rural development' He had seen me at work

as jJint secretary, chemicals and his elrquiries gave him the necessary

"..'ur"o." aboui *y experience. Bothl Sivaraman and Venkatappaiah

put in a word in my favour. H.M'Patdl remembered my performance

u, u *itrr"., on behalf of the ministry of shipping and transport in the

Public Accounts Committee of which he was a member and obtained

the approval of government. Thus I landed in Bombay on 1st January

fSZAio take up the last of my appoinltments. My initial tenure of five

years was extended by about 7 monthp in view of the establishment of

ihe National Bank for Agriculture and Rural Development (Nabard)

in July, 1982 and my appointment as its first chairman for one year in

addition to my dutiis as deputy governor. Incidentally, the stand I took

while pro"eeding on leave preparatory to retirement-was vindicated'

Friends were ctitical of my decision to leave New Delhi immediately,

as according to thern a person out of sight would be out of mind and

absence from New Delhi would advergely affect my chances of securing

an assignment. I used to reply that if there was any worth in me, I would

be senifor from Hyderabad. At any rate' Iwas not willing to go through

the demeaning experience of hunting for favours and waiting in New

Delhi for the- expected telephone call. I had seen an ICS officer

nervously waiting for such a call and his wife pulling out an extra cup

from the packeJ container each tirrle a guest called' Eventually he

moved to his home town and waited patiently for the promised post-

retirement appointment. My luck saved my pride'

The years I spent with the RBI were some of the happiest in my

memory. The relative autonomy of thp Reserve Bank, its distance from

the political pulls and pressures' the participatory management style

ofoi l.C.patel and theLxhilarating new challenges, all these combined

to give me considerable job satisfaction. No doubt, there were a few

jariing notes, as in any assignment. Industrial relations were not very-hu.rrJnious

and caused us anxiety at times, deflecting our attention

from the substantive tasks of economic and financial management'

Although I was not formally in charge of administration, I was drawn

increasingly into it, thanks to the teamwork andjoint responsibility that

Dr Patel evolved, and to the adoption of new methods and systems'

calculated to irnprove administrati6 efficiency, cadre management'

Deputy Govemor, RBI, In&Igg3 103

inter-departmental and inter-branch communications, etc. The weeklvmeetings

_of governor, deputy governors and executive dir""-t-or_J,

monthly letters of branch managers, the annual conference ofmanagers, the monthly meetings of heads of departments, the dis_cipline of the annual budget were some of th. n"* d"ui"", emptoyed,Most of these methods were introduced in the Bank for the frit time,jointly by Patel and me on the basis of our e4perience in the centralsecretariat. My colleagues valued my advice. ihese conditions con_tinued unaltered even after the new Dy. Governors A.Ghosh andR.Rangarajan joined in January 19g2 and Dr Manmohan Singh suc_ ..ceeded Dr Patel in September j.9g2. The latter half of 19g1 wala verydifficult period, as the strength of deputy goveroor,

""-" down fromfour to two, with retirements ana tte aeialy in filling tie vacancies. Itwas widely believed that by delalng orders on the iecommendationsof Dr I.G.Patel, the Government of India was sending a signal to himthat he did not enjoy its confidence any longer. Dr iatelieacted byannouncing his readiness to retire before the ixpiry ofthe full term bulkeptthe government guessing as to the exact dati. although ttris periodwas indeed strenuous,I had the opportunity of handling new depart-ments like Banking Development and Indusirial Financei It was duringthis period that I came to know Dr pratap C.Reddy and pushedthrough his idea of corporate health-care und th" Apollo hospitalsproject, at a time when hospitals were not treated as industry forfinancing purposes.

My portfolio consisted of currency management, expenditure andaccounts, and agricultural credit. I was also concurrently Chairnan,Agricultural Refinance and Development Corporation lanOC;, usubsidiary of RBI. A few days after ljoined, govJrnment demonetisedhigh- value bank notes above Rs 100 and I was called upon to make thenecessary arrangements to meet the rush of the surrendered notes,Two types of cases come to my mind. In one, religious institutions liketemples claimed that large numbers of demonetis-ed notes were foundin their collection boxes and their full value should be paid to them as

!!e.f w;re offerings to the deities from devotees before the fixed date.This plea was developing into a racket and the unscrupulous were usingthis route for extending the date. So I ruled that offeiings found in thecollection boxes on the day immediately following the innouncement

104 Two Administralors : Iwaction Between ICS and IAS

of demonetisation and surrendered to the bank promptly on that day

could be encashed. For good measurd, I added.that d"":":: YPiit;Jl;"""tised notJs hter wouldibe offendingnot ontvife t1w

of man but also the law of God, as the had become worthless bY

ii*. n rott .. set of cases came from the north-east' where the tribals

were being used as conduits for large its of notes under benami

arrangements. During mY icatiou I rejected those claims and

forfeited the notes despite pressure on me by some Politicians'

suffered. For example, an airline pilot dn deputatlon rn Srngapore anu

eori.ufiu did not kow the relevant date and came to me with the

J"-orr"tis"d notes io his lockers long after. I couldnot help as I had

"o Ji."r"tio" under the law. At that iiure, it was widely_removed that

the entire demonetisation exercise wag launched in order to uncover

;;;iltt;" ;;se amount said to have been hoarded bvlndira Gandhi

and her associates in the Congtess' It was difficult to say whether this

ui- *u, achieved. All that I -can

say is that out of the total value of

nr.r+j.+z crores of these high-value notes in circulation' notes of

Rs.20.97 ctores were not received in the Reserve Bank and thus

became demonetised finally. Besides' notes of Rs' 8'14 crores were

confrscated.

Another task entrusted to me within a month of my joining was

uu"tiorriog of gotd on behalf of Governnrent of India' My administrative

exoerierrcle se-ems to have outweighed my ignorance of the economics

;;;il. ;;;;r"1 and I had seriius doubts about the wisdom of this

poficy and its effectiveness as an anti-smuggling measure'However' we

i^J,t g" along with the government' We ensured that the gold stock

of the B'ank was not depleted and the quantity ofgold offered in auction

*u. tirni "a

to the sto;k built up by the government from seizures by

"u.to.s. rrc neserve Bank was mlrely icting as an agency on behalf

of the government. I worked out the best possible arrangements'

;;,hy;f lhe integrity and reputation for fair play of the country's

central bank. Aft; ; few auctions, we managed to persuade the-

;;;;;;;, to call a halt. The entire exercise became a subject of

iontroversy. When the Congress(I) came to power in 1980' it ordered

uo "oqui.yin

it, quest for skeletons in the Janata cupboard' A former

;;;;;;f RBI, K.R.Puri was the enquiring officer' He gave rne the

Deputy Govemor, RBI, 197&Igg3 105

irnpression of a man who had made up his mind even at the start andwas only searching for evidence to confirm that gold was cornered bya few parties and that Dr LG.patel and I in th"e Reserve Bank hadfacilitated this process. He gave his report with the expected con_clusions. Irvas one ofthe persons who was asked to explair. A sampleof Puri's observations was that the Reserve Bank shouid have insistedon a formal contract before undertaking the agency function. Howcould a former governor be_so ignorant i. pr"liaiced as to imaginethat the relations between the government unj its bunk"., a centralbank, should be so rigid and foimal? ft" *outJ t uu" Ueen right if hehad only commented that the government dragged its feet in issuingdetailed instructions to the agency, although eveiiually the instructionsissued late covered the earlier

'transacttns. His c6mments on the

reserve price of gold were also contrived. Despite our dim view of thereport, Patel and I had to go through the motions and submit detailedexplanations. In my letter to the finance minister forwarding my com_ments, I refuted all the aspersions puri had cast on me and the auctioncommittee and stated as follows:

"I hope and trust that the Government will do everything necessaryto protect the honour, integrity and reputation of its officers who

":q"1*y...t'o. "ury out irs policies faithfully, honestly and to the bestof their abilities, irrespective of the party in power."

I learnt that my comments, along with the replies of others involvedwere placed before a committde of cabinet ministers and that it wasdecided not to pursue the matter, although the suspected cases ofcornering of gold pointed out by puri should be inveitigated furtherfor possible legal action. I however, received no official intimation ofthe final disposal of the matter. As far as I know, nothing came out ofthe investigations either. Such are the nerve-racking wis of govern_ment.

The.apgve unsavoury episode apart, my work during the entiretenure with Reserve Bank related mainly to iural credit. I used to visitthe states, cooperative banks, commercial banks and rural develop_ment projects in the field. Thebiggest and the most ubiquitous problernthat I came across was political interference. Elected managements ofcooperative societies and banks were being superseded on flimsv

106Benveen ICS and IAS

gounds; credit melas introduced for speed,l yutiny-*,1T:,*::jffi ;;,i;;. ;;; distorted into a ;opulist exercise :j il'jt91^:"f

b;ii;; i;red few; the nexus-between the bank.and its bor-

,o*.,. *o .ti"nts was being broken at will; and above all, the repay.

;;;rht; was being steadily eroded' The plausible.tqu-:"t.of

r"*J "d"*ity carie to be used ftequently. and frivolously for

;;'r;;t"r ;;puyrn"',tt and for subvert-.c *"d1!.ry:1}:'-1::::p"r,p""i"g ,"puyt"rrt. and for subvefting credit dlsctpline' In these

ii.",r..t"i""r, i undertook to suppoft the credit institutions itr the

n"fa, *i tt ihe prestige attd authopity of th3 R.esene Banh for

*frui"u". ,n"v *"r" *o.ih. In on" inst4nce, I refused' on behalf of the

n.r"*" S""k, to honour the certificate of a district collector in

rurJ"rurltru ufout drought'affected villages' The collector had' under

oofiiird ot"r.ure, declaied that the kharif crops in ahnost all villages

il *b;;trn.|, aitt ough tl,emain crop, cotton, had givcna goodyield

as evidenced from the purchases under the state government's

*rrofoty por"t ase scheme. In reality, only a few villages where jowar

;;;'";;"t" affected' The chief rnlnister, Sharad Pawar' called me

to u ileetiog of lris ministers. When I explained the facts' he recognised

ii" "U.*aily "f

the situation and agreod to a modifiedformula of relief

;;;;;;;;*"rs onlv, which I suggested' But his successor' A'R'An-

,tiiy, iit"* n""ncial procedures lo the winds' disregarded the advice

oilii, ofn"".., avoided consultation with the Reserve Bank and an-

nou"""a the write-off of a large amount of cooperative lozrns across

theboard.ThisstartedachainreactiOnamongthestategovernments.The Tamil Nadu government, which was trying to resist the demand

for a similar write-offbythe local agriculturists' association succumbed

io ,n" p."r.o." and announced th-e write-off' more or less on siftrilar

lines. Other state governments tried tb follow suit' With a view to stem

rc ,ia" and avoiJ a breakdown of the credit system, Dr Patel and I

;il;;il matter with the Union finance minister and the Prime

Mioirte.. fhey.aw the dangers of Antulay's example a-nd advised other

,ru*t "* to Lmuhte himbut to work out, in consultation with the

i;;; Bank, a reasonable systeril of relief' without blurring the

disiirrction Uetween wilful defaulteri and others and after identifying

iaiural calamities on the basis ofstridt criteria' Thereafter' we deputed

soecial teams to different states for working out the details' It was not

;il;;;;.;;ry to tring some oriler into the svstem after the rash

action of AntulaY.

Deputy Govemor, RBI, IgTg-Igg3 107

ln J anuary L979. when I was attending an international conferenceorganised by Asian and pacific Region Afiicultural Credit Association(APY!A) in Karachi, I was askid to ,".t*o,

"*i"i-fiog my stay. The

ostensible reason was to ensure that I would noi be stranded on accountof the riots that might break out in the wake of tte executioo of Za.Bhutto by the Zjalul- Huq govemment of pakistan. On my return Ilearnt that the real reason was the urgert consultations that hadbecome necessary due to the pressure oT Cfr-uo Siqgh, the financeminister, to do somethine spectacllar for satis$ing tie farm lobby.Bhanu- Pratap Singh, the influentiuf ,nioirt* oiri'u-t."i' tUe ministry ofagriculture and G.V.KRao, the secretary were vigorously pushingihe

To1o13l to-sgt up an Agricultural Deveiopment iank, separate fromthe RBI. Although the proposal was saidio be basel'on the recom_mendation of the National Commission on Agriculture in one of itsInterim Reports and a brief but favourable delision taken thereon inprinciple by the Indira Gandhi government during the Emergency, thedetails had not been worked out by its advocatel Reserve Bank hadgrave doubts, and was not willing to shed its role in agricultural creditin a hurry in favour of a new and half-baked institutilon. Dr patel wasready to get the e4perts to study the proposal but this did not satisfiCharan Singh who wanted something donl at once. This was the reasonbehind my recall. So-on, I produced a scheme for lowering the rates ofrnterest on loaDs to farmers. The essential precondition o.f the schemewas that the cost of funds to ARDC should be brought down partly byexempting it from income tax and partly by reducingihe rate of interestcharged by government on the loans alainst the frorld Bank,s line ofcredit. This scheme was promptly approved, as it had a superiormessage than the establishment of a separate Agriculture Develop-ment Bank, Charan Singh also agreed to get the latter idea examinedfy -an

expert committee, to be appointed by the RBI, provided itincluded G.V.K.Rao, the nominee of Bhanu n"tap Siogil. Sivaramanwas chosen as the chairman by unanimous *or"it. Oiher memberswere L.CJain, Manu Shroff and myself. patel and I deliberatelywidened the scope of the committee toinclude non-farm activities andrural development in its widest sense. Thus, the Committee for Review_rng Arrangements for Institutional Credii for Agriculture and RuralDevelopment (CRAFICARD) cameinto Uelng.-Again, I got the op_oortunit5r of working with Sivaraman for fulfiling oL common objec_

108 Two Administraton : Iilteraction Between ICS anil IAS

tives. I also achieved my long'standing [im of making ARDC tax' free'

on par with the Industrial Bank of India (IDBI), desPite

the opposition of the revenue of the finance ministry. The

"o-#tt"" guu" an interim report on 28 Nov 199, recommending the

formation of a National Bank for & Rural DeveloPment

(Nabard) , while Charan Singh was the Prime Minister of the caretaker

governmerrt. tt was taken up for implementation by the Indira Gandhi

iovernment which came to power after the election of 1980'

Unlike the vague but much'touted idea of the- Agriculture

Development Sank; NaUarO was envlsaged as a financial institution

with a large scope, jointly owned by dovernment of India and RBI' It

*us orgaiically ji"t"a *itn the RBI through its chairman who would

b" orrJof th" lutter's deputy governors. This organic link was justihed

on the grounds that the resources for short-term credit were to be

providei by the RBI and that the cre{it policies and operations ofthe

iitational Sank should be closely and ctrntinuously coordinated with the

monetary policies of the Reserve Ban[<. Though the review committee

had recommended a statutory provision for ensuring this organic link'

it was dropped by the cabinet at the last minute, at the insistence ofthe

agriculture minister. The cabinet, however, laid down that for the first

fiiteen yea.s, nobody other than a deputy goverlgr RBI should be

appoinied as chairman, NABARD. The National Bank was also re-

lui."a to cover non-agricultural aspects of rural development' It was

to provide rnedium and long-term credit as well' In short, it was meant

to promote all kinds of activities relevant to rural development and also

build appropriate institutions down tbe line. A research and develop-

ment fund was to be created with the dividends due to but not payable

to the two shareholders during the fitst ffieen years' I remember how

I tried to intervene when this impontant provision was about to be

dropped on the basis of a technicaiobjection by the law department of

the'Covernment of India that dividends due to the government could

not be appropriated without the anniual vote of Parliament' I was not

willing to^leave this matter to the recurring scrutiny of officials who

mishi not have the necessary visiort and understanding' I therefore

suig"sted a change in the draft, banning the declaration of dividends

foiihe first fifteen years and thus taldng the matter out of the scope of

annual appropriation and the legal iequirement' This suggestion was

Deputy Govemor, RBI, 1978-19g3 109

accepted. This is one example of the great care and attention paid byme to the drafting of the NABARD Bill. I must add that the reviewcommittee had done a great service by backing up its recommendationwith a draft bill. IGishnan of the legal department in RBI assisted mein preparing the revised draft. I.G.patel also mide important improve_ments before the Bill was sent to government. Among them were theinclusion of the second deputy governor in the board, ihe continuanceof the chairman till the assumption of ofice by his successor, transferof theAgriculture Credit (Long-term Operations) Fund and Agricul_tural Credit (Stabilisation) Fund of RBI to NABARD and the con_tinuance of annual contributions of RBI to those Funds as before.

I devoted the last two years of my service (19g2 and 19g3) topreparing the ground for the establishment of Nabard and in ensurinsthat it would function smoothly in the years to come. The relevant Aciwas passed in December, 1981 and the Bank was constituted on Julv

?, I9U. Preparatory work included the framing of rules and regula-tions, the service code, separation ofthe personnel from the RBI. theprocurement of physical facilities for the head office at Bombay andregional offices in the states and above all, the determination of thenew policy guidelines for refinancing new areas of rural developmentsuch as handlooms, village industries, etc. preparations were startedeven before the Bill was passed by parliament and well before I wastold that Iwould be the first chairman. Here, I must record mygratitudeto the support given bygovernors, Dr patel and Dr Manmohan Singh,and the hard work put in by several officers of ARDC and the agricul_ture credit department of RBI. B.N.Sharma, manager in_charge ofadministration in ARDC deserves special mention. JJ/.Rao, who hadworked as director in the ministry of shipping and transport under meand had retired, drafted the service rules. The Indian Institute ofManagement, Ahmedabad advised on the organisational pattern andconducted the orientation course for the officers. Dr S.K.Rau. formerDirector-General, National Institute of Rural Development, preparedthe blueprint for the Bankers, Institute of Rural Devetop-eoilninO;,to be set up at Lucknow for training the offrcers of thi regional ruralbanks and the staff of NABARD. I secured the necessarv land free ofcost from the government of Up and my ambition was to build aninstitution of excellence there, somewhat on the lines of the Institute

of Rural Management, Anand (IRMA), set up by my friend Kurien ofthe National Dairy Development Boafd. Four committees were ap-

pointed with experts fron different fiefds to advise on credit policies

for handlooms, handicrafts, khadi and fillage industries, and market-

ing.

110 Two Aihninistrators : Inleraction Between ICS and IAS

Great emphasis was laid on up technical knowledge and

exoertise in NABARD in all of rural development like soil

conservation, agronomy, irrigation, water, forestry, animal

husbandry and village industries, was established with the

laboratories of CSIR with a view to research relevant toNabard. For example, the tissue culture experiments of National

Chemical Laboratory Pune were supported. The mapping techniques

of the National Geophpical Laboratorf, Hyderabad were drawn uponfor development of forestry. ICG.Venkhtaraman, a former member ofIndian Forest Service and Deputy Manager, Forestry in NABARD was

of great assistance in this regard. I wanted NABARD to be a sponsor

of action- oriented research, by utilisitg its R&D fund. For this pur-pose, I held a consultation in April 198? with the e4perts of agricultural

universities, national laboratories and other research institutions. In-teresting approaches were suggested, but alas, I did not have more than

1.5 months to pursue them. A good pant of my time was unfortunatelytaken up in meeting administrative exigencies and motivated criticism

and removing the wild and baseless apprehensions of the Reserve Bank

employees about their future under the new dispensation ofNABARD,

I had hoped that in view of the, ground-work already done and

recommendations made in advance, th€ government would be able toconstitute the board of directors, simultaneously with the issue of the

notifications setting up the Bank and appointing the chairman and the

managing director. This remained an idle hope. The government wouldnot make up its mind on the composition of the board for a long time,

with the result that the board came into being after.nearly eight months.

I hadtwo alternatives before me: one, to be passive and just carry on

the routine functions and the other, to act on the spirit of the law

without violating thc letter and do everything necessary and legallypossible for the progress of Nabard. I chose the second course. I found,

o+careful examination, that I could do everything in the namb of tk

Deputy Govemor, RBI, 197&1983 111

Bank, except appoint the advisory comm;ttee which fell in the provinceof the board.

One of the pressing needs of NABARD was the residential accom-modation for the staff. This involved not only a large financial commit-ment but deciding between alternative sites, competing contractors,rates, etc. I took the usual precautions and consulted the englneers ofRBI and some other consultants whom I had appointed. Some of thesedecisions became the subject- matter of anonymous complaints bydisgruntled persons. When the board eventually met, some memberstried to raise a discussion on these anonymous petitions, withoutrealising the full implications of their action. As chairman, I ruled outa formal discussion in the board but offered to provide, on an informalbasis, all information on the alleged complaints, so as to satisff themembers. This approach and the care with which everything wasproperly documented convinced the directors that the complaints werenot only baseless but also motivated.

One incident of this period deserves to be recorded. One eveningin December 1982, Shah, one of the contractors building NABARDflats in Bombay, visited me in my residence and left a gift stating thatit was customary for him to greet highofiicers and others at the timeof Diwali with some sweets and that he had missed me as I was abroadat that time. According to my habi! I did not open the packet in hispresence. He left after an exchange of pleasantries and extending aninvitation to me and my family to his cinema house. When the packagewas opened, I found a silver tray and a dozen silver glasses, the cost ofwhich I estimated to be about Rs 5,0(X). I was surprised at the behaviourof Shah, particularly his misleading statement about the nature of thegift. Next day, I received a note from Sant Das, managing director,NABARD that Shah had left a similar costly present in his house in hisabsence and that he proposed to return it, cautioning him against suchbehaviour in future. Thereupoq I wrote that I too was a victim of Shah,sgenerosity and. that instead of returning the two presents to him, weshould treat them as gifts to NABARD in token of Shah's appreciationofthe profitable contract he had executed with it. I added that the silver.articles should thereafter be classified as the silver of the board ofdirectors, kept in safe custody and produced at special functiong suchas the lunches held in connection with the meetings of the board.

112 Two Administrators : Interaction Between ICS and MS

Accordingly, the silver was brought onrt at the first lunch of the board.

I related the story as some of my critics were trying to pounce upon me

with the charge of extravagance. Thtls did I handle, with finesse and

humour, one last attempt to corrupt 4nd malign me!

While making preparations for NABARD, I underwent a unique

and memorable experience despite 4y disability and constant pain in

my left eye, which had lost its sight since April 1982. I vividly remember

that the pain of glaucoma started while I was addressing the consult-

ative meeting on the R&D fund. Deblaring the aim of NABARD as

'development through credit' I preached that a whole philosophy was

to be derived from this phrase. I identified five principles: adoption ofappropriate methods of science and technology; clear delineation ofthe terms and conditions of credit by the bankers and the faithfuladherence to them by the borrower; close monitoring; practice of thriftby the borrower; and prompt repaym.ent of instalments by the borrower

and matching consideration by the banker in the event of natural

calamity and unforeseen circumstances. NABARD frlled my thoughts

in all my waking hours. I felt so e:<hilarated and inspired that I wrote a

few lines of poetry. I composed verses in English and Hindi to bring

out the commitment and meaning of fhe oath that the NABARD staffwas required to take under the Act. The Hindi verses, which were set

to music by Vijya Raghava Rao,the fahous composer of AIR and came

to be known as the NABARD Song.,{ NABARD choir, consisting ofpersons from all grades presented the song before the Prime Minister

during che dedication ceremony. I hoped that it would provide

guidance and inspiration to the men and women of NABARD for the

propagation of the five principles of development through credit and

the fulfilment of NABARD's mission. The English version of the

original Hindi song is reproduced below:

The NABARD Song

Come hither, come hither,Let us take the pledge together,

For NABARD's workers all of us are.

Rural progress is our motive,

Integrated development our qbjective,

Deputy Gowmor, RBI, 1978-1983 II3

Towards the poorest we.moveWith hearts full of love,And deploy our money and our labour,So to ensure the fruits of our love's labour.

Development will then become a reality,When we adapt science and technolog5r

Apply eKension methodolog5r

And work with skill and inspiration in synerry.

So we will, so we willVisit villages frequentlyWith dedication, heart and soul,

Work as catalyst sincerely,Provide all assistance necessary,

With stress on additional productivity,And bring back the bank's share of additionality.

Work is our strengthWork is our worshipGlory be to work, glory be to work,Come, let us work,NABARD's workers all of us are.

Note : The Hindi song was composed by me with theassistance of Shri O.P. Sharma of NABARD, andDr P.Jayaraman and Miss Roopam Misra of RBL

To propagate the principles of development through credit, I hitupon the idea of a volunteer corps called Vikas Volunteer Vahini(WV). It was a body of men and women who had volunteered todisseminate these ideas among the rural people. I planned to give tothe WV a theme songinregional languages, so that they might becomebards of NABARD and sing glories of development through credit,just as bards of old kept our values alive through prosperity andadversity. I envisaged the establishment of clubs in the villages toprovide a bridge between them and the banks. Another element ofthe scheme was the involvement of specialist volunteers from amongthe retired who agreed to spare their time and technical knowledge, onpayment of out- of-pocket expenses but no salary, for the guidance of

114 Two Administraton : Ilpteraction Between ICS and IAS

the rural borrowers, particularly the p{orer among them. The idea was

that educated persons must rcpay thqir debt to society through freeservice, after retirement. Thirty-seve! members of the WV fromffierent districts and speaking diffetent languages were presented

with badges by Prime Minister Indira Gandhi when she dedicatedNABARD to the nation at a special function on October 5, 1982 inNew Delhi.Inhis message on rhis occaqion Sivaraman stated as follows:

'lThe whole universe of rural growth is the franchise of NABARD;a staggering thought."

I submitted that "development bslking is too serious a business tobe left to bankers alone, or for that matter to government departmentsalone," and stressed the need for "the desired combination of skills,coordination of wills and cooperation of borrowers, actual and poten-tial."

To my great disappointment, I found that some of the members ofthe board of directors who came on the scene later did not share my

enthusiasm for WV and the musical aid to norale. Although theWV, which was sanctioned for three years, was to be expanded tocover all the districts gradually, it became limited to certain areas

without the original thrust or faith. I content myself with the thoughtthat if there is substance and utility in these methods, they are boundto survive and win in due course.

As my term was due to e4pire on July 31, L983, I initiated actionfor selecting my successor in February, 1983. My intention was that heshould join at least by May 1983, rerlain as an understudy for some

time and take over at the end of July 1983. Alas, this was not to be.

Although proposals reached government in March, 1983 it could nottake a decision. So when the time camb for me to quit office as deputygovernor, there was nobodyto take ovef. The NABARD Act containeda provision that although the chairmafi's term might expire, he shouldcontinue till his successorjoined. I infchmed government that althoughI would leave Bombay for Hyderabad on the expiry of my term, I was

bound by law and duty to ftraction as chairman in accordance with theabove provision till a successor joined; However, when I called on thefinance minister, P.K. Mukherji, on thd last day of July 1983 to bid him

Depuly Govemor, RBI, 197&1983

good-bye formally, I was taken aback by what he called my stand inregard to the chairmanship of NABARD. I replied that to continue aschairman even after quitting office as deputy governor was nor mychoice but my duty in compliance with an Act of parliament. However.I agreed to resign if the minister wished me to do so. Without such arequest, I added, I had no means of escape from the legal obligation.At this point, the minister recovered his composure and tried to coverup the awkrVardness of the moment by praising the work I had donein the building of NABARD. I took this opportunity to impress uponhim the wisdom underlying the relevant provision in the law and howa similar provision in the Reserve Bank of India Act had saved thegovernment from embarrassment earlier, when it took a long time tonominate directors in place of those whose terrns had expired. As theminister was reported to have directed the removal of the aboveprovision from the law, I also advised him not to make any amendmentin haste. Thus, a courtesy call on the last day of service turned into asession of advice and assertion of self- respect. I have not been able tofollow how public interest is served by leaving posts of chairmen ordirectors vacant. My suspicion is that ministers like to have a situatignin which they can flaunt their power and patronage.

According to reliable sources, the facts relating to the process ofchoosing my successor were as follows. In February 1983, Dr Man-mohan Singh, Governor RBI, met Prime Minister Indira Gandhi andobtained her approval to the selection of a senior IAS officer for thepost, someone with an intimate knowledge of state administration ingeneral and rural development in particular. This was considerednecessary in view ofher reported reluctance to induct IAS officers intobankingjobs. Thereafter, I was asked to shorGlist IAS officers with theappropriate backgroundand experience. T\vo names, IC Ramamurthy,member board of revenue, Orissa, and M.M.K. Wali, chief secretaryRajasthan were finally chosen by the governor and recomrnended inthat order to the finance ministry for obtaining the approval of theAppointments Committee of the cabinet. The finance minister sat onthis for a long time. Meanwhile, a rumour was afloat that Wali wasselected. It gained credence as Wali called on the governor and madeenquiries about thejob. But suddenly, at the end ofJulyjust before theend of my tenure, information reached the Reserve Bank that Wali was

115

116 Two Administrators : IAteraction Beween ICS anil HS

not being spared by the government ofl Rajasthan and a search was on

for another suitable officer. After a fek days, the name of R.K.Kaul,

additional secretary in the banking divi$ion of the finance ministry who

was due to retire shortly, began to be drentioned in the financial press

as the possible successor. The governdr conveyed his unhappiness at'

this proposal to the finance minister. dt that time, serious differences

were brewing between the governor dnd the government on two im-

portant matters: the proposal to divebt RBI of the power to license

commercial banks to open branches, and the permission to be ac-

corded to Swaraj Paul, a non-resident Indian, to acquire the shares of

Escorts. The former was perhaps mooted as a result of the governor's

refusal to toe the line in regard to some foreign banks. There were

exaggerated speculations in the finalcial press on the intentions ofgovernment behind foisting Kaul on the Reserve Bank despite the

governor's opposition. Matters came to a head in September, when the

self-respecting governor almost reached the point of submitting his

resignation. Then it was that goverdment saw it fit to defuse the

situation, by dropping the proposal on licensing bank branches and

agreeing to write a letter in the affair of Swaraj Paul instead ofa formaldirective'demanded by the governor, while persuading the latter towithdraw his opposition to the appointment ofKaul as deputy governor

and chairman of NABARD. The governor was left free to allot otherportfolios in the Reserve Bank to Kaul. He had succeeded in warding

off two major incursions into the.Baqk's autonomy and power, while

cor.promising on the third issue. This is the stuff of which decisions

are made at the highest level. It is now for readers to judge the proprietyof the manouvre that landed Kaul in NABARD, particularly against

the background that he was not in the short list recommended by the

governor, the final order was delayed till his retirement and that Waliwas transferred soon after from the post of chief secretary Rajasthan

to that of Union home secretary.

At long last, on October I, 1983, thanks indeedto the special efforts

of government, the second chairman arrived in the National Bank forAgriculture and Rural Development, with a mind unburdened with

knowledge or experience of agricultulre or rural development. And Iwas relieved on the same day.

7Post-retirement, 1983 onwards

By way of postscript, I may narrate briefly my activities afterretirement from the Reserve Bank and NABARD. For some months,I was full of ideas about the work of NABARD but an effective endwas put to them try the cold attitude of Kaul, my successor. At the timeof retirement, I was working on a manual for NABARD officers. inwhich I was to deal with the implications of the philosophy of develop_ment through credit. I thought I would complete it, if some secretarialassistance was extended to me. But Kaul saw no use for such a manualand did not agree to provide the requested assistance. Soon, I learntthat a witch hunt was started against those who had worked closelywithme and were allegedlyloyal to me. Reports reached me that NABARDwas lbeing turned into a subordinate office of the finance ministry,conthary to the original concept of an autonomous body, more o, lessin the rmage of the Reserve Bank. Kaul could not even"constitute theadvisory committee, which according to the Act was well within thepower of the board of directors, as he thought it necessary to consulthis patron, the finance minister and that gentleman took his own time.I guessed that Kaul would not like even myshadow to fall on his domainand so I decided to keep away. Thus I gradually came out of the webof inspiration that encircled me since 1981.

N.T. Rama Rao, the chief minister of Andhra pradesh who hadcome to power in 1983 for the first time, wanted me to advise the stategovernment on one matter or the other. First, I joined a committee

118

entrusted with the drafting of the menflorandum to the Sarkaria Com'

mission on Centre-State relations. Second, I was made a member of

the State Development Board which lyas concerned with the formula-

tion of the state frve year plan. Both proved to be of no serious

consequence although I laboured hard to draft parts of the memoran-

dum for the SarkariiCommission. ThF chief minister,I believe, had no

time or inclination to read our draft arrd finally submitted a brief note

to the commission, without sharing it with or consulting the committee'

The State Developrnent Board too proved to be a farce, as it met only

infrequently. I guessed that he was ulsing me and my colleagues as a

-"r" i.orrt, in ,y.bolic fulfiknent of the election promise that he would

readily draw upon the wisdom of intellectuals to make up for his own

lack of administrative experience. I once told him to his face that

although we the intellectuals were around him, our intellects remained

with u; firmly sealed. This and other incidents led me to disengage

myself from tire state administration with honour and grace after about

two years.

Meanwhile, the Union ministry of industries appointed me as

chairman of Khadi and Village lndustries Review Committee

(KAVIRC) in 1985 and this lasted till 1987. I was not a stranger to this

iubject, as I was associated with the Orissa state Khadi and Village

Industries Boardinthe fifties and had revived my interest in the eighties

as chairman ARDC and NABARD and as member of the National

Committee on Development of B ackward Areas headed by Sivaraman'

KAVIRC gave me the opportunity of visiting the villages in different

states and holding discussions with Gandhian workers and research

scientists in the field. My main contribution through this committee

was to change the definition of village industries and to release

Gandhian economics of non-farm employm.ent from the deadly grip of

latter-day Gandhians, who forgot the substance of GandhijLs message

for the sake of a few traditional activities. Village industry has since

come to mean any non-farm activity in a village, which provides

employment. The presence io the committee of .G' Venkataramanan

nS, the dynamicjoint secretary of the ministry and an earnest believer

in relevant technolog5t, ensured tho quick processing of the interim

report and the amendment of the Khadi and Village Industries Com-

mi-ssion Act. more ot less on the recommended lines' Thereafter, I was

P os t-retirc men L 198 3 onw a rds

asked by the Planning Commission for advice h connection with their

appraisal of the Seventh Plan and formulation of the Eighth Plan. As

a iesult, I had the unique privilege of addressing the consultative

committee of Parliament attached to the planning ministry on the

subject of khadi and village industries. I wish more attention had been

paid to the rest of the committee's recommendations e.g., on market-

ing, science and technology and the administrative reorganisation ofthe KVIC.

While I was still busy with the review committee, I was asked to be

a one-man committee to study the workings of the coffee, tea and

rubber boards by the commerce ministry in 1986. This was perhaps

due to the interest I had taken in these plantation crops as chairmaq

NABARD. I submitted the report in November 1987 to P.R. Das

Munshi, the minister of state . To my surprise, I found him reluctant to

make the report public and encourage a debate on the recommenda-

tions. He and his advisors thought that the publication might embar-

rassgovernment, if follow-up action was not taken soon and if members

of Parliament raised the matter in the House in the meantime. My

impression was that they had no time for such democratic methods'

The report has remained under wraps till the time of writing' I am not

aware if any of the recommendations have been implemented or what

use has been made of the report.

In L988, I had the privilege of heading two committees of the

ministry of agriculture. Gne was a three-member affair, concerrred with

the review of the directorate ofextension in the ministry. The other was

a one-man committee with the task of studying the arrangements for

cooperative training and education. Both the reports were delivered in

March-April 1989 and the agricultgre secretary gave the impression

that he was keen on implementing the recommendations.The reports

were promptly referred to an empowered committee but it gradually

became clear that the will to make changes in administrative structures

and improve their performance was not strong entrugh.

My experience with these committees has made me sad and per-

haps wise in the process. I remember that I had to work particularly

hard for the one-man committees, despite declining vision due to

cataract in the right eye and continuous pain in the sight-less left eye

119

Two Administraton : Interafiion Between ICS and IAS

due to glaucoma. The results achieved have not been commensuratewith the efforts I made. I have accordidely become chary of acceptingsuch assignments in future out of anlr exaggerated sense of publicservice. My experience with the Khadi and Village Industries reviewcommittee showed me that a committte can only be effective if theofficials concerned with the subj ect are deeply interested in and closelyassociated with its work.

Besides these governmental assignments, I have associated myselfwith the work of two voluntary organisations. The Prakasam Instituteof Development Studies, Hyderabad, $et up in memory of the greatfreedom-fighter, Andhra Kesari, has ptovided me with opportunitiesfor public education in important topical subjects like national integra-tion, secularism, cooperative movemelrt a,nd centre-state relations.The other, Bhagavatula Charitable Trust located in Elamanchili nearVisakhapatnam has opened a window on the rural world and enabledme to participate in experiments in rutal development, like women'sthrift groups, credit-based activities, irtformal education, eradicationof illiteracy, etc.

The government assigr.ments have no doubt broughtme additionalincome and helped me keep the home filesburning till the Governmentof India decided to augment the pensiou and dearness reliefin accord-ance first with a Supreme Court judgement and later with the recom-mendation of the Fourth Central Pay Commission. When I arrived inHyderabad in August 1983, my pension and dearness relief was no omore than Rs 1,425. The dire situation I faced in December 1977 was

somewhat mitigated by the savings made during my tenure in theReserve Bank and its contribution to the provident fund. Fortunately,my guidance was sought by a local teChnocrat-cum-entrepreneur inoperating a finance mmpany and I have benefited to a limited extentbybecoming chairman of DCL Finance Ltd. On similar considerations,I have come to be on the board of directors of Hindustan Ciba-GeigyLtd., Bombay and ofone or two other companies. These positions have

been useful to me for keeping in touch with changes in the economy as

a whole and for remaining physically mobile and intellectually active.

To conclude, I have not done badly. despite the apprehensions atthe beginning of my career, the self- imposed restraints during the

Post-retircment, 1983 onwards 121

service, inflation and the belated government response to it, and aboveall, the motivated attacks on me by peers and politicians. This is thestory of the progress of an orphan to Deputy Governor of the ReserveBank, a self-made man who was determined not to lose his honour andself-respect for the sake of the so-called good things of life and a heavybank balance at the end. I was content to lie in the bed I had made formyself,

CHAPTER.II

SIVARAMAN'S EXAMPLE

Career ln1

ICS, 1934-70

That Sivaraman provided a powerful example and influenced mein many ways in the practice of public administration would, by now,be obvious to the reader. An account of how he rose to this positionand what lessons he conveyed to others for emulation will be instructiveto the students and practitioners of public administration.

Broadly speaking, Sivaraman's career may be divided into sixperiods: L934-46 may be described as a period of training and prepara-tion; 1946-49 saw him emerge as an able manager of civil supplies;during 1949-55 he demonstrated his administrative acumen over awidefield; 1956-65 was when he guided development policy and administra-tion of the Orissa state; during 1965-70 he fulfilled his destiny as one

of the harbingers of the Green Revolution and reached the highestposition a civilian could attain viz., Cabinet Secretary to the Govern-ment of India; and 1970-88, when he was called to lead dnd participatein commissions and committees charged with the study and solution ofimportant national problems. Some of the commissions were full-timeassignments, the most notable being the National Commission onAgriculture and the Planning Commission. Although part-time, hismembership of the Sarkaria Commission on Centre-State Relations(1983-88) deserves special mention. In 1990, he agreed to advise thegovernment of Orissa once again as deputy chairman, State PlanningBoard. He was unable to resist the insistent calls of the Chief Minister,Biju Patnaik. In a letter to me in July 1990, he said: "The task at

126 Two Afuninistrators : Inleraction Between ICS and IAS

Bhubaneswar appears to be herculeah. I wonder at my age what

impression I can make. Anyhow it is a thsk for my intellect. It wi[ give

me some objective in life, now that my f4mily ties are slowly loosening".

However, he gave up the assignment dfter about six months, due to

uncongenial circumstances.

I shafl highlight the major events of each period. Those who are

interested in the details are referred to his book Biffer Sweer (Ashish

Publishing Co., New Delhi).

Balaraman Sivaraman joined the Eihar and Orissa Cadre of the

Indian Civil Service on November 30, 1934, having secured a high rank

in the competitive examination held in london in the previous year.

Posted to Ranchi as Assistant Collector, hebought a cycle andpedalledhis way to the collectorate in the earfy afternoon to commence an

illustrious career.

Sivaraman in 1934 was a young ma+ of twenty two, the pride of his

family, conservative in outlook, rigid itr dietary habits, nationalist intemperament but realistic enough to suibordinate it to the demands ofthe Service, little interested in current affairs, capable of concentrated

effort though not physically strong and fully conscious of the supportof parents and near relations. How such a person grew to be acompetent adminisftator, an inspiring leader and a respected iidvisorin a wide variety of fields is the story of this section. As indicated

earlier, only the major events will be narrated to delineate the path ofhis progress.

In his first post as assistant collector, Ranchi, Sivaraman had no

regular administrative work, as he was supposed to trainhimself inlaw,Hindi, horse-riding and other subjects prescribed for the departmentalexamination to be held at the end of probation. Outside office hours,

he spent his time socialising with the Indian officers of the station at

the club and played a lot of tennis and cards. After an year or so, he

was asked to take over as subdivisional officer, Bhabua in Shahabad

district. His memory ofBhabua does not appear to be very happy, due

primarily to a severe attack of malariq which compelled him to take

long leave.

Career in ICS, 193470 127

On return from leave in August 1937, he became sub-collector,Berhampur in Ganjam, Orissa. Although Orissa became a separateprovince in April 1, 1936, the ICS officers continued to be members ofthe joint Bihar and Orissa cadre for several years. He stayed inBerhampur for three years. It was in this post that Sivaraman masteredthe details of revenue administration and magisterial work. About hisstay here, Sivaraman has written that "Berhampur made me, physical-ly." He built up his stamina and confidence to withstand the ever_present danger of malaria, kala-azat and other mosquito-bornediseases and to undertake tours into the interior. He also acquired thereputation of a fearless and independent magistrate. In one case hegave a ruling against his own collector in a defamation case. which thelatter had launched against ajournal called iy'ew Onisa. Although theHigh Court set aside his judgement, it praised its quality. In recogni-tion of his abilities, he was specially chosen to conduct the committalproceedings-in the Bezelgette murder case in which several prajaMandal workers were accused of rioting and killing the political agentof Ranpur state. He was promoted as collector, Balasore after a shortstint in the secretariat as special officer.

His next appointment as district and sessions judge, purulia inBihar was even more prestigious. Initially, Sivaraman was not happyabout this posting, as it was felt that onlythose ICS officers were postedto the judiciary who were wanting in executive abilities. He howevertook his duties seriously, made a study of the civil law and earned theadmiration of the Bar and High Court, through hard work, speedydisposal and sound judgement. The judgeship proved to be a shortinterlude as in May 1942 he was sent to Purnea as collector.

Purnea gave Sivaraman ample opportunities to show his mettle asan executive. He handled successfully, with great tact and circumspec-tion, the law and order problems resultingfrom the euit India agitationand the'economic problems caused by the Second World War. Herehe developed his ideas on the management of civil supplies, almostsingle-handed, without any direction or advice from the higherechelons of government. Although purnea was an important paddymarketing centre for the eastern Bihar districts and the Terai iegionof Nepal, the trade was under tft control of the businessmen ofCalcutta. He apprehended that if the latter moved awav the rice stocks

128 Two Administrators : Ihtelaction Beween ICS and IAS

from the district soon after milling {he poor labour and consumer

would be exposed to high prices axd scarclty in the lean season:

Sivaraman writes: "I thought that as a Collector of the District I had a

duty to see if the labour can be shielded from the catastrophe'n He

proposed a scheme by which governmbnt would purchase some paddy-io

th" ,"uron, "onvert

it into rice and s4ock if for sale in the lean months

at a reasonable price. This operation, in his view, would have a salutary

effect on the market prices as well as availability. When government

turned it down for lack of funds, Sivaraman persisted with the idea ard

finally managed to implement it on an informal basis with the help of

the Imperiai Bank of India and the cooperation of the millers and

withoui the use of government funds. This was, perhaps, the frstinstance of a collector of a district planning and erecting an informal

system of equitable distribution of staple foodgrains for the benefit of

tle common citizen, though in a rudlrnentary form. Later, when the

government set up a system of monopoly purchase through agents and

appoittted Regional Government Supply Officers (RGSOs) for rice

suiplus "ones

of Bihar, Purnea was dade an exception' The collector

cotrtinued as the RGSO and was allowed to operate his own system'

Sivaraman writes: "It was quite a tribute to my pioneering efforts' The

millers gave me no trouble. Behind me was the Defence of India Rules

which I never used in mY service."

In another significant move, as part of government's fund-raising

drive in the districts such as the War Fund and Post Office savings,

Sivaraman chose the latter and enabled a local committee to earn

substantial commission and build, with the help of the earnings,a

college, a long-felt need of the area. Thus he killed two birds with one

stone, satisffing both the government and the people. Purnea won the

inter- district competition. For his 'lvork in Purnea, he was awarded

the Order of the British Empire (OBE) in the Birthday Honours

published in June 1945. It was indeed a rare honour for a 33-year-old

field offrcer.

After Purnea, Sivaraman came to be recognised as an expert in

civil supplies management, and his subsequent postings were as In-

spectoi of Supply Offices in Bihar and Secretary, Supply and

Transport, Orissa. In ensuring procurement and distribution of essen-

tial commodities and administering the price control regimeq he

Career in ICS, 193+70

achieved considerable success. He introduced many innovativemeasures for safeguarding the interests of Orissa. Special funds werecreated for procurement bonus and special contingent charges out ofcurrent receipts. These funds proved useful later, when unforeseenclaims were made against government and when the need for addition-al resources for rural storage was keenly felt. His greatest contributionas supply secretary was to integrate the former princely states into thesupplysystem of Orissa smoothlyand quickly. B.B. Nag, a civil suppliesofficer of those days who was promoted to the IAS later, writes as

follows: 'Vith the merger of the princely states in January 1948, themagnitude of the task increased manifold and now a thorough reor-ganisation had to be made by Sivaraman. There was a compulsion toadjust but a relative incapacity in the merged states to do so. Indeed,things were in more than usual disarray... Sivaraman with his zest forhard work, grasp of affairs and intellectual brilliance tackled thesituation with self- confidence and alacrity."

In 1949, Sivaraman was promoted to the rank of commissioner andwas given the dual charge of assistant chief administrator, Orissa states

and revenue divisional commissioner, northern division" consisting ofthe districts of Dhenkanal, Keonjhar, Sundergarh, Sambalpur, Bolan-gir and Kalahandi. He was also given direct charge ofthe land reclama-tion and resettlemetrt of the families displaced by the Hirakud Dam.In the middle of 1951. his burden increased further as a result of thereorganisation of the Board of Revenue and the decision of govern-ment to attach some secretariat departments to each memher. Thecircumstances in which this unique arrangement came into being willbe described in a later chapter. Suffice it for the present to say thatSivaraman came to be called Member (Commercial Taxes) and to holdconcurrent charge of the posts of Secretary to Government in thedepartments of mines and geology and gram panchayats. Sivaraman'sworkload increased enorrnously but he met the challenges squarely.He carried forward the process of integrating the former princelystates with the Orissa administration which he started as secretary,supply and transport. The periodic and intensive inspections of thedistrict offices which he undertook set the tone for the administration.The detailed and meticulous tour notes recorded by him providedvaluable guidance. Known to be a close confidant of the then chief

129

130 Two Administraton : Interaction Between ICS and IAS

minister Nabakishna Chaudhury (popularly known as Nabababu), he

wielded considerable influence at all flevels in the state government'

Officers belonging to various service$ as well as the people at large

looked up to him for the solutiou of tbleir problems. Although he was

often refirred to as the Maharaj ah, bolrowing the idiom of the princely

states, he took care to be accessible to the people, officials and non-of-

ficials alike. Some of the great ideas on development policy and

administration he espoused in later yoars took tentative shape during

this period.

A glimpse into Sivaraman's j udici4l work as Member (Commercial

Taxes) while disposing of revision petitions under the Orissa Sales Tax

Act has been provided by Justice Ranganath Misra, the advocate who

later became Chief Justice of the Supreme Court in 1990. The follow-

ing is an extract from his note:

"Those were the days when the concept of inter- state sale was in

a state of confusion; the Supreme CoWt verdict tnllnited Matters \adnot yet been revi ewedby Bengal Immwnity. A revision petition involv-

ing a substantial sales-tax demand came up before the Board' Senior

counsel from Calcutta and Madras appeared for the assessee. By then

there were not many Indian precedentp to be cited one way or the other'

The Court halt at Sambalpur, whete proceedings took place was

jampacked with lawyers from outside, members of the local Bar,

members of the Chambers of Commerce who were vitally interested in

the result of the dispute and onlookers. Visiting counsel had assumed

the hearing to take three days - one day for the facts, the second for

the statement of the legal position and the concluding one for the

summing up.

"The proceedings started at the appointed hour. In about five

minutes the matters to be taken up for phe day were settled and onbeing

requested, the Member agreed to begfn with the inter-state sale matter.

Members of the Bar in the other casgs to be taken up were told at the

Bar that the first case was a lengthy olre and no other matter was likely

to reach that day.

"When the senior counsel from Calcutta stood up to open ihe case,

the Member gave a brief but excellent analysis of the facts ard also the

CareerinICS, 193470 131

Iaw relevant to the matter. In hardly fi.fteen minutes, what connsel hadplanned for two days was over. The legal position was so clearly statedthat counsel opined that it could not have been done better. Within aquarter of an hour thereafter the standing counsel of the commercialtaxes department was called to his feet. Before mid-day, it had becomeclear that the material facts had not been found ani the AssessineOfficer as also the First Appellate Authority recorded finding of factiwrongly and assumed the disputed facts in favour of Revenue. In tenminutes the Member dictated his order. Clear directions to the Assis-tant Collector of Sales-Tax to find one way or the other on the basis offacts available and to be collected after hearing counsel were given.

"Mr. Sivaraman had the gift of making quick but correct assess_ment of,facts and situations. The ease with which he functioned indischarge ofhis public duties surprised everyone whb had seen hirn atwork. Many felt that he should have opted for judicial service and indue course adorned the superior courts and shown his mettle."

At the behest of chief minister, Sivaraman drafted two bills duringthis period: the Orissd Gram Panclr4yat Bill and the Orissa AnchJSasan Bill. The former was promulgated as an Act and implementedwith vigour, while the latter could not be proceeded with after becom-ing an Ac! as it was overtaken by the national decision on democraticdecentralisation in favour of the three- tiered paachayati raj. Aninteresting incident occurred during the debate on the Anchal SasanBill in the Assembly. Some members were piqued by the interventionsof Sivaraman during the discussions in the select comrnittee. Thevprotested at the manner in which he objected to their suggestions anihis objections were invariably sustained by the government. Thisprovoked the chief minister to make a speech, full of encomiums toSivaraman. He declared that Orissa should be considereC fortunateand privileged to have the services of such an inteltigent, able and wiseadministrator. He upheld the right of official advisers to place theirpoints of view before the select corrmittde forcefully and frankly, asthey had the responsibility of carrying out the provisions after beingpassed into law. This statement was not received well in some quartersand continued to be cited later as evidence of Sivaraman's ascendancyover the political executive and the legislators. But the: truth of thematter has been put dovmin the following words by Banka Behary Das,

1i2 Two Administraton : Iuteruction Between ICS mil US

a socialist legislator and a close assopiate of Nabababu: "I know he

lN"UuUutu) i"lied heavily on Sivaram[rn aad used to discuss with him

i.w ft""tfy ""4

was often influenced by his valued advice' Sivaraman

as a bureaucrat assisted him to give shape to these ideas (anchal sasan)'

Often we see bureaucrats bJlieve ih centralisation of power and

authority. But Sivaraman was a bureaucrat with implicit faith in

a"f"g"ti"g power to subordinates, a rare person in these dap and

shows that he looked ahead, not backlrvard'n

Sivaraman began the third period of his career after his return

fro;;-leav", diring which he recuperated f-rom- the after-effects of

tfr" a".i;ai"g.chedrile he had set for himself as Member(C'T') and

Commissionerl Northern Division' I met hirn during this period in

Madras and found him relaxed, io the company of old friends of his

boyhood days. When he took over as chief secretary and development

com*issioo", ir, L956, he was ready in all respects, phSnical as well as

ioi"tt""tud, fo. "nother

bout ofinten$ive work' It maybe recalled that

the post of development commissioner came into being in the states on

fte aavice of the central government, soon after the adoption of the

community development programme throughout the country' The

incumbeni of this post was givJn powers of supervision" inspection and

guidance over the field echelons of all the development departments

Involved in the C.D.Programme, cutting across boundaries of mini-

sterial domair. Orissa consciously decided to combine the posts of

"ii"f ,""r.tury and development sdm'nissislpt' G"rylt during the

short period of September 1959 to rlune 1961, when Sivaraman was

oostei as member,-board of revenue), with a view to equip the senior-

;;;;ifi*t with the authority to coordinate potcy-making af the

secretariat level as well as impiemertation of policy at the field level'

As the burden of duties of the combined posts was found to be too

l*ty f". " t gl" perso4 new posts of additional chief secretary and

addiiional development commissioner were created in 1961 and some

duties and poweri delegated to thed' This arrangement is continuing

even at the time of writing. Howdver, the sum-total of power and

responsibility of chief secretary'oum-development commissioner

under this arrangement was indeed onerous' That Sivaraman dis-

charged these awesome responsibilities without too much controversy

and with a large -"**" oi,u*"ss and inspired many persons in the

Career in ICS, 193470 133

admiaistration and outside to perform well is now a matter of history.The standards he set were indeed so high that none of his successorsmeasured up to them. It was in this capacity that he took to agriculturaldevelopment, mastered its manifold intricacies and qualified him5slfto be the midwife of the Green Revolution that was to be born in thelate sixties. The reminiscences he recorded of this period in his boo(Bitter Sweet, are indeed interesting and instructive.

The short interlude (1959-61) as member, board of revenuereferred to above occurred as Mahatab, the chief rrinister transferredhim zuddenly, in a frt of egoism, while the coalitioa partner, RajendraNarain Singh Deo of Ganatantra parishad looked on with glee. Moreabout it later. Here, I may briefly narrate Sivaraman's reaction and hisconduct in the new post. About this incident, Banka Behary Das, thesesialisf MI-A, says: "We all felt very bad and deemed it an insult tosuch a valuable and respected officer. I had met him at that time andfelt he took this insult calmly and I never saw any rancour in him. Heaccepted the entire episode with equanimity, u, if it *u, part of thegame in administration." As member, board of reveno", Siuaru-aoundertook systematic inspection of the revenue offices and recordeddetailed notes for the guidance ofall concerned. Gian Chand, IAS whowas a deputy secretary in the finance department at that time writes:nHe was quick to perceive the damage this .fall' in efficient function-ing of these offices had done to the image of government. Despite theaddition of developmental dimensions to district administration andincreased interaction of the people with government, the fact remainedthat the 'cutting edge' of administration was still the functioning ofrevenue officers at various levels. Unless they functioned efficientlvand honestly, the image of government was bound to be poor and thedissatisfaction of the people was bound to grow. Accordingly, asbehoved an officer of his seniority, experience and knowleJge ofadmiaistration, instead of grumbling oi sulking about having beentransferred from the prestigious and powerful post of chief seletaryto that of member, board of revenue, he set about most sincerelv inrepairing the damage tbat had been done to reveoue ad-inistrationover the years.

"Being in the secretariat at that ri,ngnormally there would havebeen no occasion to know what Mr Sivar"man was doing tq tone up the

134 Two Adrninistmton : Ihterattion Between ICS anil IAS

even in certain official quarters. He rlot only made his presence felt in

"""i -a every office he held but left an impact on-the office' This

shows how *rong the officers these days are when jhey complain of

revenue administration as member, boald of revenue but for Mr

SV*u-- adopting the practice of printing the inspection notes he

.i"".d"a "fte,

iospie"tioo of offices dt various levels and circulating

them to all the administrative officers lwho had worked in districts and

*ufa U" *U"O upon to work in distrlct administration at any time' I

remember these inspectioo notes. Tfey were not only thorough but

fu[ of insight iri reveoue administratibn and contained practical sug-

g;ti;". t;t"*ove the deficiencies which had crept into the system' I

fiave mentioned this to show how, as a great administrator' Mr'

SivaramanaddedlustretoanyofEceinwhichhehappenedtowork'no matter how unglamorooa it -"y have seemed in some circles and

being given 'less important' or 'mord rmportant' JoDs or assrgncu tu

'gooi'-o.'bad' miniitries. A good administrator,.lik: Yt Sit-T1iiould take up anyjob he was assigned and do it in the best possible

manner."

important' jobs or assigned to

He also reealls, in this connection a speech by Sivaraman on

December 31, 1968 at the farewell party given by his colleagues in the

agriculture ministry" sivaranan refenred to his stint as member' board

ol*"u" with pride and said that Mahatab, the chief minister had

U"tp"a hi- to g"in real insight into rqvenue adminstration by transfer-

ring f i- 1s fi. 6oard of revenue in 1959'

A word about the part played by Sivaraman as chief seqetary-

cum-development commissioner in the construction of the deep port

u-f.na""p -A the successful completion of the inlegrated project of

"-p"J "f i."" ore of Daitari throt'glt that port' These formed part of

the manifesto that Biju Patnaik had placed before the people of Orissa

while fighting the mid-term election pf 1961' It was Biju's idea to build

" -".i"."p".,i paradeep with state government funds, for loading iron

ore io, ir,po.t and hand over the port to the Centre for management

and further development. Several obstacles had to be crossed' Con-

struction of a majoi port was a central subject and the central sector

of the Third Five-Year Plan had no provision for it' It was trot in the

i,ur" ff- either, and special effor6 were necessary not only to lind

funds, but also to prepare a detailqd project report with the help of

l

CareerinICS, 193+70

': foreign consultants, obtain approvals of various central authorities,assemble a tearn of technical offiQers to undertake construction and tocreate the necessary infrastructure at the port site as well as the ore

. mine and on the road in betrveen. Biju with his political clout wantedto steamroll the usual procedures at Bhubaneswar and New Delhi,often without regard to the sensibilities and principles,of the existingadministrative s',stem. It was almost entirely due to Sivaraman'sleadership that the obstacles could be negotiated without comnittingimproprieties and the great dream of Orissa fulfilled in record time.Gian Chard, IAS who was selected to handle thc port project and whoin due course became chief sectetary, writes as follows: n It was indeeda difficult and challe"g'g situation, as the new political leadershipwanted the administration to work in a manner in which it was notdesigned to work and it was imperative to suitably reorganise andrestructure the admiaistrative systen, if the policy objectives of thenewly established government were to be successfully implemented,while ensuring that the neutrality to political parties and accountabilityto the public were not destroyed in the process. Luckily for theadministration, it was headed by a civil servant of Mr Sinaraman'sability, versatility, experieace and stature. He played the role of, so tospeak, a mediator betrreen the new political leadership and the ad-ministration, and evolved a via media under which the administrativesystem could rise to the occasion and perform to the satisfaction of thenew government, without losing its basic character.n

Sivaraman's departure from Bhubaneswar in May 1965 for NewDelhi marks the end of an era in Orissa administration. Never aftercould Orissa find an administrative leader, who could fill the combinedposts of chief secretary and development commissioner with the kindof competence, credibility, authority and effectiveness displayed byhim. During his tenure in Orissa, Sivaraman served under five chiefministers; Harekrishana Mahatab; Nabakrishna Chaudhury; Biju Pat-naik;Biren Mitra; and Sadashiv Tripathy, While most of the govern-ments headed by them were single-party, one of them (1958-61) was acoalition of the Indian National Congress and the GanatantraParishad. The changes in the political ethos since 1946 and how thesechanges {ffected the relations between the politicians and thebureaucrats will be discussed in a later chapter. Here, it is suffrcient

136 Two Adtninistmtors : Interaction Between ICS and IAS

to say that Sivaraman managed to wprk out his own ideas on ad-

mini3hslisa in g.neral and developmeht administratign in particular

without being deflected unduly by the changing fortures of political

parties and factions. He enjoyed a de$ee of fteedom to act which is

rare in these days of increasing pottical interference motivated more

by petty factional considerations than by commitment to the Colstitu-

tion or people's interests.

Sivaraman's attachment to Orissa and his colleagues in the Orissa

administration was so deep- rooted that he was at first reluctant to

accept the offer of the post of secretary, agriculture by the central

government towards the end of 1964. He was hesitant even tho'tgh by

then Biju Patnaik had come under a cloud and Biren Mitra who

succeeded him as CM had yielded place to SadasivTirpathy. The vision

of building a new Orissa that drove hirt since the mid-term election of1961 began to fade under pressure of improprieties and worse per'

petuated by the Biju-Birean team aild the factional struggles that

surfaced after Nehru's death. More about these events in the chapter

'Our Times'. When I met Sivaraman in the middle olDecember 1964

in Bhubaneswar on a private visit from New De1hi, I found him in a

state of disillusionment. However, to my advice that he should accept

the offer of the Centre on the ground that he had reached his'limit in

Orissa, and the country needed his talents, he replied rather sadly by

the question, "How can I leave the youngsters in Orissa administration

at this stage when they need to be protected from political pressures?"

I countered with the adage that no plant grows under a banyan tree

and that the youngsters should be left to grow by themselves on-the

basis of the example he had set and the training he had already grven'

After sometime, he made up his mind to quit Orissa and place his

services at the disposal of the country. In his book , Bifter Sweet he eites

disillusionment with Orissa conditions as the main 'reason for his

departure.

Among the numerous functions given to Sivaraman on the eve of

his departure, one needs special rrention. It was organised by Dhanan-

jay Linka MLA and Marigovind Samal, clairman, Baisimouza

panchayat samiti of Cuttack distdct. A good number of people at-

iettded. Samai, the leading Oriya daily edited by Radhanath Ratlr,

formerly a minister and a critic of Sivataman, found it necessary to take

Career in ICS, 193+70 137

note of this function and the farewell address presented to Sivaramanon that occasion. In the issue of May 19, 1965 under the column, ,The

lizard speala' recounting the various positions held by Sivaramaq itstates that thanks to him the administration has reached the stagewhere that only would happen which he did and nothing else. It thinreferred to his capacity to handle all matters beginning with the ap-pointment of an incompetent person as chief engineer, paradeep poitand endi"g with the review of the Tikerpara project. He went on toquote from the farewell address the following passage:

iThis state, although enriched with natural bounties, is still in thecradle, when compared with other states in India and requires to benurtured by an able hand in order.to meet the shortcomings on the wayof its prosperity. By losing you from amongst us we have a feeling thatthe insurmountable uphills which lie in the way of our progress cannotbe thwarted as effectively as we could have with your help."

The 'lizard' concluded that to surmount the diffrculties andachieve prosperity, an innovative spiliit (sahas), intelligence (buddhi),thinking (chinta), competence (katyadaltshaa), discipline(shinkhala), and national pide (jatiya abhiman) were essential. Itunderlined the need for national pride by alluding to the past gloriesof the Kalinga empire and the vast natural resources of Orissa andsuggested that the Oriyas need not lose heart or entertain such pettyand base thoughts (l<shudra sankima chinta) on the occasion ofSivaraman's departure but should resolve to think deeply (gambhirchinta), endeavour ceaselessly (adamya udyarna) and work tirelessly(aklanta paishratna). Readers will no doubt guess the underlyingfeelings of the wiiter and the main point of the message. There is noneed to explain here the specific matters referred to in the articleexcept to saythat the so-called incompetent chiefengineer ofparadeepPort completed the project in time despite heavy odds and the Tiker-para Hydro-electric.prgject was shelved in view of the danger ofsubmergence of a large inhabited area (ecological objection, in themodern jargon). I ano sure Sivaraman would consider himself fulfilledif his example could lead to such a resolve by the people whom heserved so devotedly for 23 years.

Sivaramanls entry into Krishi Bhawaq New Delhi, in May 1965' as

secretary agiculturctook place at a ti$e when the country was passing

through a food crisis' The various agribultural development program-

mes tf,at had been under implementation for some years could not

produce enough to meet the rising dbmand for foodgrains' Import

irom USA under PL 480 was the maihstay of the public distribution

system. The linkages between agricultiral research, e:dension and the

i;;;"^ were tenious' Fertiliseis werb in short supply and their dis-

tribution defective. Sivaraman was ihvited by the Centre to head a

committee on fertiliser distribution evpn as chief secretary, Orissa. In

a sense, this paved the way to the full charge of the department of

agiculture. Iifell to the lot of Sivaraman to take charge of this difficult

.ituu,ioo, frame remedial policies and programmes and- ensure' their

implementation in the field by the state governments' Field experience

in brissa and the lessons he learnt there helped him in his dealings with

state governments and their officers. Although he was new to the ways

of nJtn and the procedures of the central secretariat were often

irustrating he devjoped informal lines of communication, cut through

,"d tup" "odpushed

his policies and ptogrammesin the.larger interests

of the country. tn his book Biffer Sweef, he has given a vivid description

of the diffrcities he faced in the beginning, how he solved them and

finally laid down the policy guidelines that came to be followed for a

long period without manY changes.

About this period, John W. Mellor of the International Food

Policy Research Institute, Washington writes: "It is rare indeed that a

person is able to be present at the critical time in the growth of a major

sector like agriculture and to play a key role in that process' Mr B'

Sivaraman was the right person in the right place at the right time'"

According to Mellor, the most important contribution of Sivaraman'

was "his giasp of the importance of technological changein the agicul-

tural secior as the basic engine of growth not only of agriculture but as

the basis of influence of growth of other sectors of the economy,''

Orville L. Freeman, US Secretary for Agriculture had commented that

"the combination of Sivaraman the administrator, Swaminathan the

scientist and Subramaniam the minister is the potent force to

revolutionise agriculture in India."

Career in ICS. 193+70

Ralph W. Cummings of the RockefellerFoundation, who first metSivaraman in Orissa and began "to admire his dynamism and abilities"has written more elaborately about his secretaryship in the agricultureministry:

"It was during the mid-sixties, when Mr C. Subramaniam wasminister for agriculture, and Mr B. Sivaraman secretary to the ministrythat India had at the helm a truly outstanding team which made andimplemented a whole series of moves which placed Indian agriculturefirmly on the road ofunprecedented progress. The reorganisation andredirection of its institutional base for generations and application ofmodern science to agricultural production problems through im-plementation of major changes in agricultural research, education andextension was a basic departure which resulted in assuring India of asustained institutional capability to bring forward leadership able toapply the tools of nodern science in this field. The major reorganisa-tion of the Indian Council of Agicultual Research and the parallelestablishment and consolidation of the State Agricultural Universitysystem with simultaneous responsibilities for instructioq research onapplied agriculture, and subject matter content of extensionprogramme were major institutional innovations. The decisionsduring this same period to introduce and promote on a large scalepromising but as yet not fully proven, potentially high yielding lodgingresistant, and fertiliser responsive varieties of wheat and rice, placethem initially in restricted areas with greatest probability of success,

provide necessaryinput supplies to those areas, and assure markets forthe products -- produced results that caught tho imagination of farmersand national leaders, and really set in motion the "Green Revolution"that rapidly moved the nation from a high rate of dependency onimports to stave offwide-spread hunger to a position essentially of foodself-sufficiency. This was a truly exciting period and the team ofSubramaniam and Sivaraman deserve much of the credit for the leader-ship and superb execution of these historic developments. Both weremen of conviction, courage, integrity and leadership of the highestorder. I considered it a rare privilege to have the opportunity ofassociation with them."

Nathan M. Koffsky of the US Department of Agriculture who waspbsted in India as the Ford Foundation expert during 1966-68 writes:

r39

140 Tltto Adninktmton : I4teraction Betiteen ICS and AS

"I have great admiration for Mr Sivarlaman. He is one of the finest

pubtic servants I have encountered ih my career. He had a most

diffi"ult t*k "t "

very difficult and urgdnt time . He needed to promote

and initiate the new improved seed technolog5r, wheat seeds from

CIMMYT in Mexico, rice varieties from IRRI in the Phillipines' There

was the need to allocate scarce supplids of seeds, fertilisers, etc' And

he had to cope with institutional inadequacies in the delivery system of

supplies and services to the cultivatorq. Further, he was hampered by

proiuction statistics which were too late to be of much use immediately

and subject to reporting biases of the various states interested in '

protecting their claims for supplies of food from the central govern-

ment. As I recall, Mr Sivaraman became his own intelligence service,

travelling continuously to review the situation in the major producing

areas, eliminating bottleneck in suppliies and services as best he could

and uplifting the bureaucracy to improve performance."

Having thus attracted the attentipn of international experts and

thinkers concerned with agriculture, $ivaraman came to be consulted

by the Food and Agriculture Organisation (FAO) of UN' the World

Bank and other international institutions ofrepute, till he relinquished

office as Member, Planning Commission in 1979.

Sivaramaa was elevated as cabinet secretaty on January 1, 1969'

The promotion was in recognition of his abilities as an administrator

and policy adviser. In other words, his special interest in and great

contributions to Indian agriculture did not make him a stereotype' As

cabinet secretary he tried to tone up the routine procedures in the

secretariat, called organisation and methods in modern jargon, to

make the ministries accountable to the cabinet for the implementation

of its decisions and above all, to strengthen the personnel administra-

tion. His colleagues who first thought of him as a man of agriculture

pure and simple were surprised at his incisive comments and timely

iuggestions in specialised fields. He managed to earn and keep the

confidence of the Prime Minister and the respect of the other ministers,

despite the new trends in administrative behaviour such as

'committment', personal loyalty to tho boss, etc., that began to surface

at that time.

Cateer in ICS, 193470 141

On retirement in Decenber 1970, Prime Minister Indira Gandhiu/rote to him a pe.lsonal letter which reads as follows:

"On the eve of your relinquishing the post of Cabinet Secretarywhich you have held with such distinction, I should like to express myappreciation of the services you have rendered. I hope that your wealthof experience will continue to be made available in the public interest."

The following extract from the minutes of the last Cabinet meetingattended by Sivaraman on Novemb er 26,1970 were formally comrnuni-cated to him:

"The Prime Minister expressed deep appreciation of the workdone by Shri B. Sivaraman. She said that the work of the CabinetSecretariat had expanded manyfold during his term of office. This wasdue to the assignment of new responsibilities, many ofthem on the basisof ARC's reports. She placed high value on his advice and assistanceand considered his contribution to the formulation of proposals forcreation of additional employment opportunities and examination ofARC's recommendations significant. The Cabinet associated itselfwith Prime Minister's remarks."

T. Swaminathan, his successor, who communicated the aboveextract added: "Allow me to add, on behalfofthe Services, that all yourcolleagues respectfully share the feelings expressed by the Prime Min-ister." Soon after. Sivaraman was awarded the Padma Vibhushan. Thecitation, after recounting the important positions heheld, says: "He waschiefly responsible for the development of agriculture and ushering inthe gteen revolution in the country during this period." The handingover note he prepared for his successor, which was printed as a bookunder the title'Indian Agriculture 1965-68'was widely circulated toprovide guidance. Thus the young ICS officer of colonial Purnea, withhis Order of the British Empire, retired as the Cabinet Secretary ofIndependent Bharat with Padma Vibhushan.

2Post-retirement, I97L onwards

As hinted try Indira Gandhi in her farewell letter, retirement fromICS did not mean the end of Sivaraman's involvement in public ad-ministration. He was soon drafted as vice-chairman of the NationalCommission on Agriculture (NCA). The chairman was C. Sub-ramaniam who wassucceeded by Nathuram Mirdha after a short sport.This however did not in any way affect the work or style of Sivaraman.The other members of the Commission were well-known experts indifferent agricultural disciplines. Sivaraman employed the device ofInterim Reports, to highlight matters that needed urgent action on thepart ofgovernment at the Centre and the states. This was unlike othercommissions whichwere known for producing learned tomes after longperiods of study. Twenty-four Interim Reports were submitted by theNCA in addition to the main Report consisting of sixy-nine chaptersin fifteen parts. These volumes are a veritable mine of information,suggestions and advice on agriculture and allied subjects. NCA had"visualised Indian agriculture in a perspective of twenty-five years andgiven broad indications ofthe directions of development." In the wordsof John W. Mellor, again:" He (Sivaraman) was able to lay out the fullrange of requirements for agricultural growth in the form of a long-term strategy v/ith a clear sense of priority, including the emphasis onagricultural research and on the other requisites of techlologicalchange." It is no wonder that scholars, planners and administrators

144

delve into these volumes frequently fdr gurdance in the performance

of their duties and functions.

When Sivaraman was half-way through the work of the National

Commission, he was called upon by government, in a rare display of

wisdom, to join the Planning Comrnision and be in charge of agricul-

ture. Thus the country got the benefit of continuous guidance from a

man who knew agricultural matters like the back of his hand. The

uniqueness of Sivaraman's contributibn during his tenure in Yojana

Bhavan was not merely knowledge, but the administrative ability for

harnessing agencies in the Centre and the states to national task and

achieving set objectives.

Sivaraman became the inevitable choice for heading many com-

mittees on a variety of subjects. The more important ones were:

Handloom Committee (Ministry of Commerce), 1974

- Urban Wastes Committee (Ministry of Health)' 1975

Tobacco Excise Committee (Finance Ministry)' 1975

- Working Group on Meteorology (Department of Science &Technology), 1976

- Working Group on Voluntary Agencies in Rural Develop-

ment (Planning Commission), 1975

- Working Group on Regional Rural Banks (Finance Minis-

try),1976

- Coir Committee (Ministry of Industries)' 1-977

- Committeq to Review Arrangements of Institutional Credit-

for Agriculture and Rural Development (CRAFICARD)'Reserve Bank of India, 1979-81

- National Committee on Development of Backward Areas

(Planning Commission)' 1-979-81

- Working Group on Atid Tnne Research (Deartment of

Science & TechnologY), 1981

- Commission on Centre.state Relations (Ministry of Home

Affairs), 1983-88

Post-retirement, 197 I onwards 145

Some of the recommendations of these comnrittees and commis_sions have led to the creation of n6w s.{ministlxfivs structures and theadoption of new policies. For example, a new tlpe of Bank called theRegional Rural Bank which combined the profeiiional e4pertise ofthecommercial banks and the local feel of the cooperative banks came intobeing as: result.of the report of the working-group on regional lgralbanks. The National Bank for furiculture and RLd Dlvebpment(NABARD) was created on the basis of the CRAFICARD report.The Handloom Committee,s recommendations on the financing normsand other important matters were adopted by the R eserve Bank andthe government.

The Commission on Centre-State Relations, popularly known asthe Sarkaria Commission, which was the last of hislsignnents, deser_ves special mention. This commissi'n was constituted in r.gg3 in thewake of pressing demands from several states and political parties fora thorough review of the working ofthe existing arrangements betweenthe Union and the states.

It was called upon to examine "all inter_ governnental relationswhether founded on or arising from or related to constitutional orstatutory provisions, or administrative practices and conventions in_cluding the mechanisms through hich they are worked.,, It was athree-member body consisting of a judge, an economist and an ad-ministrator, It is no wonder that the choice of the government fell onSivaraman for filling the slot meant for the administrator. Who elsecould fill it better than Sivaraman, who had an impeccable reputationas a fighter for the rights of Orissa, a backward itate. and who laterpractised the principles of cooperative federalism

"" iJoion Aexicul-

ture Secretary in spreading the gospel of green revolution amo-ng thestates?

- Ramakrishna Hegde, the then chief minister, Karnataka and

the main spirit behind the southern chief Ministers conference ofL983 that rai3ed the demand for the review of the Centre- Staterelations was quick to hail the appointment of Sivaraman to theSarkaria Commission. He,proclaimed that the interests of the stateswould now be safe in the hands of the Commission.

It is interesting to note that during the early days of the SarkariaCommission, Sivaraman's services were also specially sought for head_

146 Two Administraton : h eraction Betuveen ICS and IAS

ing the Central Silk Board for a term. By a special dispensation he was

aliowed to function from Madras, alt[ough the headquarters of thd

board was located at Bangalore.

This assignment, which was offered to him at the instance ofPupul

fuyukui,uauii". to the Prime Minister, lasted till April 1985' "During

iil p"rioa," Sivaraman writes, "my job was mainly to bring order into

ii. orguni*tio" and improve the qualify ofseed cocoon productionby

reguthi inspections and checks. Serictrlture had spread to new areas

ft; Andhr; Pradesh, orissa and Uttan Pradesh in a big way' Several

i"tg" p."i""tt *ere siarted in the states like the Rs' 10 crore project in

WJrt ^n"igat

and the 2 crore one in Orissa'" He was instrumental in

drawing tf,e attention of the Sericulture Research Station' Mysore to

ti" poJtiUifi V of sericulture in the hot climate of Andhra Pradesh'

"orrtru.y to ti" prevailing theory. This he didon the basis of the work

a"t" LV O.. Rayudu, the communist leader of Gannavaram' He hails

nuyoau as "the pioneer who instructed me'" In regard to tassar silk

toq Sivaraman made significant c<irntributions by revamping the

programmes on the basii of his earlier experience as development

"orrirni..ione., Orissa and member, Planning Commission' Nostalgi-

""fiy, ft" writes: "Ramakrishnayya first brought to my.notice in Orissa

ih"'hporrurr"" of tassar culture for the economy of tribals of Keonjhar

unJfrluyo.Uttuni. When he was in the development department he also

initiatei a tassar centre in Keonjhar district' I pursued this interest

when I was member in charge of tribal welfare in the Planning Com-

mission. I visited Manipur and examined the utility of oak tassar as an

important subsidiary occupation for the tribals of Manipur"' As a

.erult of siuu.u-un,i initiutiu". and the good work done subsequently

by the Central Silk Board, silk has beqome an important item in the list

of our exports.

CHAPTER.III

OUR TIMES

1

Orissa

.As indicated in the previous chapters, Sivaraman and I learnt therudiments of public administration in Orissa and went on to apply ourknowledge and skills to the management of the larger problems of thenation. To understand our achieverirents and failures in the practiceof public administration it is necessary to recall the main features ofthe environment and the times in which we worked.

Orissa was part of the Bihar and Orissa province when Sivaramanjoined the ICS. It became a separate province on April 1, 1936. WhenSivaraman was preparing for the competifive examination in London,the British government was actively considering changes in the gover_nance of India. The series of Round Table Conferences called toconsult various Indian interests had ended in December 1932. Basedon those,colrsultations, the government drafted its proposals for reformand published them in the White paper of N,tarctr i9:a. The JoinrCommittee of British Parliament took up the detailed examination ofthe proposals and submitted its report in October 1934. It formed thebasis of the Government of India Act, 1935. The Act envisaged afederation of the British provinces and the Indian States. For theIormer, autonomy was provided, subject to special discretionarypowers of the governors in respect of certain matiers. It was decidedto bring the provisions relating to provinces into force from April 1,1937. Accordingly, orissa was born and elections to the provincialassemblies were held in January of that year. The Indian National

Congress achieved impressive victorios in most provincBs and formed

sovernments after receiving the assutrance that the governors would

i"i "rtaJrt .-";"it"ln"it-tp""ia powers and would generally abide

by the advice of their councils of minlsters'

Sivaraman had no part to play in ttese momentous developments

u. fr" *ut u iotior officer at the time' Further' he was on medical leave

J"ti"" ,n" i*,i"ns. When he rejoined duty in August 1937 as subcol-

tJoi s".ltu-pur in Ganjam district, orissa was a separate pronnce

;;;; 'c"tgt*Jministry hiaded by Bfishwanath D as was in office' The

ministrv co-ntinued till the end of october 1939, when the chief minister

il,#;i#il" -itii,"O submittdd his resignation' inpursuance of

t\h" ilrdf;;ii"yof nir'party not to cooperate with the British

nou".n."ot'. *u. "ffort,

i" itot"tt against the manner in which India

i;r;t"*;;;" ,i" *"t utrt"ut any consuftation with Indian parties

and Coi-gress governments and without the post-war aims being

;;"til:itbrissa lrgislative 'Assemblv was kept in suspended

animation till November 1941, wheo a three- member cabinet headed

Cv-the Maharaiah of Parlakhimedi, Gajapati NarayanaDev and with

iJ;;Mil;a and Sobhan Khan as ministers assumed oflice' It was

a coalition of the National Par$ of the Maharajab' the-United Party of

;h" ";j;-K;nn

the Independeot Party of the Raja of Khallikote'

ihe Uusli- Irague aod some defectors from the Congtess' Although

i;;j;FG;"ironage of the Britishrulers, it couldnotlastlons due

t"-ri"'i"oig"* amon! the partners and mrtual bickerings among the

ministers. -Governor's

rule was reimposed in 1944'

During the above period, Sivaraman held the positions of subcol-

lector, BJrhampur, Special Officer (Election Manual) in the

.;;;;i;", collector, Balasort district, iessions Judge' Purulia and"C.if""-,

i*"ea. The last two postinss.were in Bihar' It appears that

i" aa ooi rr*" much to do witlh the ti"i51gts or politicians of those

days. ffe nas, however, recorded in his b ookBitter Sweet' two instan-

cesinwliclhehadcomeclosetoattractingthenoticeofthepoliticians.

In one iristance, the Congress ministry of Bishwanath Das thought

of taking Jepartmental actioiagai'ust Sivaraman in connection with his

jJA;;;Cub-divisional Mlagisttate, Berhampur which was later

Two A&ninistraton : Interaction Between ICS and IAS

Oissa Ist

set aside by the patna High Court on an appeal by government. Thisthought was abandoned Jn the advice "f

ifr" "fri"f?"".etary and thechiefjustice who held thar Sivaru-".,, jod;;;;;t ;iio, p"*.rr" o.n1|cion-s and a magistrate niust be fr""lo *"ir. his ludgementwithout fear.

The second instance occurred duririg his tenure as Collector,.Purnea. This period was marked by sever.-r""i.rl"J ,"esses arisingout of the Second World War. a, in. nortititi.s ,ellilea tne f.ontiers

:j^ll1tt y-t:h troops.came to be stationed irr p;;;;" which wascnosen as the transit point to the eastern theatre. At the same time,the euit India Movemenr of th" r;;;N;;;icig."r, *u. io,.n_sified in the district. Sivaraman was spared ugly incid"ents, partly dueto his tacful handting of the nritish troops and-;;,ly l;;" .heer luck.As stated earlier, the tensions of the time U.""gii"", fri, talents forl*T9ii..^g-,le people,s interests wirh the duties of the .steet frame,to which he belonged. In his reminiscences, he .L""ff. i-o* on" of tf,"activists of the euit India Movement ."t **."u".ui f,ars later andacknowledged his services to the people of p*""".- -' '-

We have noted that Sivaraman came to Orissa rn 1946 andremained there till 1965. His-appointment ",

,""..tu.yio governmentin the supply and transporr department br;;gh ;;;"re to etectedpolitical leaders for the-frst time. In tbe years"-thaiirf f

"*"0, he had towork with five differenr chief ministers ura ,"""rui f"liii"ians of aif_ferent hues. The following governments ruled orissa be$een 1946and 1965:

Governor's Rule

Harekish.na Mahatab (Congress)

Nabaft rishnaChaudhury(Congress)

Harekrishna Mahatab (Congress)

Harekrishna Mahatab &R.N. Singh Deo (Congress &Ganatantra parishad)

President's rule

From

L944

1946

r2.5.50

19.10.56

22.5.59

?5.2.6L

To

1946

11.5.50

18.10.56

225.59

u.2.6r:.

22.6.6I

f

152 Two Adninistrators : h Praction Benveen ICS and' IAS

Biju Patnaik (Congress)

Biren Mitra (Congress)

S. TripathY (Congress)

23.6.61 1.10.63

2.t0.63 20.2.65

2L.2.65 8.3.67

At this stage, it will be in order to grve l brief account of the

evolution of Orissa politics and the pe'tso-nalitiet tli:11*"115*#evotutrou ('r \-,,rrJDg

""^'-*" l" ai"u"d into fiu" p"tiods: 1882 to 1936'the political drama. It maY til;1't,";;;;i ical issue was unification of oriva- speaking areas;

1936 to 1946, thernulo' pu't oi*iich cciincidedwiththe SecondWorld

War; 1946 to 1959, when Congre-ss g.ontiilteq lhe.P,olitical scene; 1959

;;;d;i, ;;" congress lost is hold and had to form a-coalition with

il "^ii'ftit"

ti"als;-and 1961 to 1965' the cut-off year for Sivaraman'

,^irr[rrl"*irt" t".,rrg.n"" of the congress' ro garrl ttr.e story further'

HH;;;t^* ?tt r'ora'ug"i" iln the 1967^elections when the

Ganatantra Parishad came ouJk'o po*"'' The Consress returned to

;;;;;;;tt "'d continueJ till t98b but for short spells of President's

irf" f" tszl and 1976' The Janata Dal assumed office after the

"i"",.". "r1srs. I served as chief secretary from November 19'12 to

July 1974 and as adviser to th" gou""o' h 1976' The main events of

il;;"ffi;tti" u,i"nv a"t"iibed in the following paragraphs' For

this, I have drawn on -y "'"rno'y as well as Sunit Ghosh's Oissa in

Tunnoil (Bookland International' Bhubaneshwar' -1979)'

and F'G'

Bailey's Politics atrd So'ii Cni"g'' Ot\y rn l99 (UniversitY of

California Press, r-onao" roi:j ' Be"sides' I have benefited from a study

;il;;;$;;aphies of Nilamani Routrav and Surendra Mahantv'

both in the Oriya language Ai'*tni O Aiubhuti'.Grantha Mandir'

b"i*f,, i98e and Patha o iruthwi' Eastern Media' Bhubaneshwar'

1986).

Serious political activity started in Orissa in the second-last decade

"f th}stf**ury. In 18d2, Madhusudan Das' the frst Oriya advo-

;il1; il; as Utkal Gourab' founded Utkal Sabha in Cuttack'

;;;;;; cause of the oriva language yd yite the oriva-

;J"kt;;;;;'a"' o'" adminiitration' At that time' these areas

were scattered among trrree provincps' the presidencies ofBengal and

Madras and the Central Provinces' The four districts of Angul' Cut-

tack. Puri and Butu,o'" *"'"'io B"ngal Presidency' the nlvo districts of

ffiiilffi;a;;priit rt'r"a'* preiidencv and the Sambalpur district

Oissar53

in ile Central Provinces. The terrible famine of 1g66 showed how thelong distances between ttre plfa tracts and the provincial capitalscontributed to the neglect ofthese people. Stafford Northcoti, theSectetary of State for India, recogpised this nas evidence of the defect

$ t! ;.xisting sf-stem of governmentn and srrqgested the separation of

the Oriya areas from Bengal. gu1 this .ugg".tioo *". oot pursued forsome reason. In 1895 the rratter came to the fore again, when the chiefcommissioner of Central provinces abolished Orila as the court lan-guage

-in Sambalpur, on the ridiculous ground thai the uniforn adop-

tion of Hindi would facilitate transfer of offtce.s from one district toanother. l![setings were held to condemn this move and memorialswere presented to the authorities. The Utkal Hitaisini Sabha led bythe Maharajah of Parlakhimedi, some Oriya leaders of Sambalpur andt" n"j. of Balasore took part in these activities. But, it was not tillDecember 1903 that a single organisation representing all the Oriya_speaking areas, all shades of opinion and all classes dme ioto being.The Utkal Sammilani or Utkal Union Conference was formed, at thisuggestion of Madhusudan Das, to provide x singtg platform for theprinces, aristocrats a"d commoners, to speak uniiedly for the Oriyas.The Maharajah of Mayrbhanj p.esiAeA anO tle nu;"', otOfrr*-A,Keonjhar, 4thgarh and Talcher took active part hihe deliberations.The sammilani was described as a socio-cultural association with fouraims: unification of natural Orissa, all-round development of Orissa,one administration for all Oriya- speaking areas,and protection ofOriyas in the outlying tracts. Of this ivent, Sunit Giosh'nrites: ,,Trulvspeaking the Utkal Sammilani sp:bolised the awakening of the peopleof Orissa who were the last to come under the British rile." Iniereit_ingly, 1903 marked the centenary of British occupation. The Sam_milani held annual conferences regularly to arouse publicconsciousness and press its demands.

In 1905, thanks to the viceroy, Lord Curzon and his anxietv tocompensate the partitioned Bengal, Sambalpur district was detaciedfrom the Central Provinces and made a part of Orissa division ofBengal, consisting of the four Oriya-speaking districts of Cuttack, puri,Ralasore and Angul. The Utkal Sammilani welcomed the arrangementaltho"eh it fell short ofits demand for a separate province. The IndianNational Congress, however, criticised it, is part tf its eeneral opposi_

154

tion to the partition of Bengal. In 1911, fthe Orissa division was addi:d

to Bihar, to constitute the new provin{e of Bihar and Orissa' The

reason cited was that Bihar was in need of a seaboard!

The agitation for a separate provihce continued' It received a

boost, witf, the rise of Gopabandhu Das and his Satyabadi School'

Gopabandhq who presided over the Srimmilani-in1917, brought with

ni."*irr"otitttellectualslikeNilkantllaDas,GodavarisMisra,Lin-gaiaj Misra, IGipasindhu Misra and H:irihar Das, who were destined

io pLy uo 'important

part in the cultlrral renaissance and political

a*uteoiog of b.issu- But soon, Gopabandhu decided to join the

mainstre;m of the national movement for freedom under the leader-

ship of Mahatnaa Gandhi and make the agitation for a separate Orissa

frouln.. an integral part of that movement' On the persuasion of'Gopabandhu anJ other like'minded leaders liom other parts of the

cou ntry, the Indian National Congress ddopted a tesolution at Nagpur

in Declmber 1920 in favour of reorganibation of provinces on a lingus:

tic basis. A feil days later, the Chakradharpur Conference of the Utkal

Sammilani resolved, at the instance of Gopabandhu Dag that the "aims

uia oUj.*r of the indian National Congress be accepted as those of

the Utkal Union Conference in addition to the accepted objectives of

the Conference." But when the very [ext year Gopabandhu and his

colleagues plunged into the non-coopdration movement' there was a'

clash betrrien the older members and the youtrger members of the

Sammilani. Gopabandhu the Utkahani and Madhusudan the Utlak-

gograb parted company and "the nobles, moderates and ultraloyalists

Iormedihemselves into a separate block inside the Conference under

the leadership of the veteran." (L.M. Patnaik, Resunected Oissa)'

Among ihose wo stood by the Utkalmani were the intbllectuals of the

Satyab-adi School and nvo students, Hairekrishna Mahatab and Nabak-

rishna Chaudhury. The last two were destined to play significant roles

in the making.of modern Orissa aftel lndependence'

Mahatma Gandhi toured Oris5a in March 1921 at the invitation of

Gopabandhu Das. This was hail'ed aF a historic event' Gandhi was

profouodly moued and declated that 'lOrissa is the epitorne of India's

poverty." i{e discarded the fuil dhoti and vowed that he would wear a

i*""-f*gth "loth

only till every Indian got suffrcient food and clothing'

rhis broight hi- cioser to the teeming millions and the freedom

Orksa

struggle became a mass movement. Thus was the foundation of Con_gress.larl in Orissa. Gopabandhu was undoubtedly its chief architect.He also established the Oriya newspaper,

^iarzaf, as a member of thePeoples Sociery of Indi4 sponsored by f_la fa;pat nai. Samaj grewtrort shength to strength and made sigrificant contributions to thesocial cultural and political development of Orissa. Even now, it iswi$ely r9g4 despte the emergence of ,re* pup".r. Of late, it has cometo be criticised as the close preserve of one fa-ily.

It is interesting to speculate how Orissa has come to be thecurtain-raiser for historic events. We have noted Gandhiji,s renuncia_tion of the full dhoti. In the distant past, Asoka, the conqueror,became a non- violent Buddhist in Kalinga, one of the ancient namEsfor Orissa, He spent the rest of his life spieading the message of LordBuddha. In 1947, Orissa showed the way for the itegration ofprincelystates with the Indian Union, as acknowledged hanJsomely by SardarPatel. In 1!X4, Pandit Nehru took ill in Bhubaneswar during thecongress session and never recovered, His death soon thereafter setin motionhistoric changes in the Indian political scene. Twenty yearslater, his daughter, Indira Gandhi, declaied, in the famous last speechat Bhubaneswar, that she was ready to sacrifice her last drop oftloodfor the unity and integrity ofthe nation. she fen to the assassin's bulettwo dap later, tqiggering an uphear al in Indian politics. It is from sucha land that Sivaraman and I learnt our alphabei of public administra_tion and set forth in 1964 and 1965 respectively to confront theproblems of the nation.

Gopabandhu Das died in June 192g. Soon after, says Sunit Ghosh,"the Satyabadi School degenerated into a hotbed of casie politics.,, Hequotes the following comment of L.M. patnaik, which is worthreproducing: "Unfortunately as years went bythe institution developedunhealthy teadencies leading to sharp differences and class pride. ltso happened that the entire control of the school was in the hands of aparticular community. Cuttack leaders became concerned.Misunderstanding grew. puri being the stronghold of Brahmins andCuttack of Karans their differences quietly ushered in the noxiousBrahmin-Karan problems. Gradually, it developed into a menace tothe society." It will not be correct to lay the blame entirelv on thebrahmins of Satyabadi School. The Karan leaders of Cuttack made no

156 Two Administraton : Interuction Betuveen ICS and MS

small contribution to the caste rift, after the demise of

I I had io contend *rl,1"_11"_b1T Iilffi;;"; "aJ"lr"",lt" chores and perform l"tTTg1"::I

choosing personnel for jobs ofa irld nature. He is a bold man who

can say that the Problem has been laid to rest. Indeed, I have

tt"*Jh"* tAf"ile sources that it has 4cquired new dimensions'

While the Utkal Congress and its leaders were absorbed in the

freedom struggle and were organising civil disobedience' salt

."*"*"tt", U"tJott of the Simon iommission and other agitations in

"r.i"? *jf"ti iie British governmentls attitude at the Round Table

ffi;;#:;il oit ",

t"uaJ's or Utkal sammilani persisted with their

;;;;;; ;t"parate province' Thev tret the Simon Qommission and

.rrU-itt"a u -"-orundjum. Maharajah of Parlakhimedi made a force-

i"irr"" "

the Round Table conference, and obtained the agreement

;;;;;;;;tir, tuuou' of a separate provirce' Largelv due to his

"it"ti " i"""arry Committee was formed' Its report and the British

sovernment's proposals were examined by the joint parliamentary

il;t "t

ni'.urrv, it was decided to include inthe new province the

airiri* of ,n. Otissa division of Bihar and Orissa' Khariar Zamindari

;iilt* district of Central Provinces and the greater part of the

du+'- ai.ttict and Visakhapatnam AC:1?. tracts of Madras

;.;id"""y. Parts of Jeypore Esiate and Parlakhimedi Estate' which

i""u*" subjects of controversy in the beginning were finally allotted

;;ottt"". ihe manner in whicir the frnal decision was taken led to the

comments in some quatters that a predominantly Hindu province of

O.i.su *us b"ing created in order to counter'balance the formation of

;il;;il"dry Muslim province of Sind and that the British hoped

io, in" "-"rg"nce

of non-Congress forces in -orissa

in view of the-rtni"tiorr.

ofIt. leading advocatis of ttre day' Whatever be the motiva-

tiorr. of ttt" decision makers, it fulhllpd the long-felt desire of all the

Oriyuop"utirrg people and put them firmly on the road of develop-

ment.

With the creation of the Province of Orissa onApril 1' 1936' Utkal

S*ituoi .""-ed to lose its roj'r on d6tre ' atlextin regard to politics'

ir t*t, i p"*"a a resolution in 1936, expressing loyalty to the Crown'

it ** 'i.*"ai"tely denounced by the Congress-as a British device to

ldiuid" uod rule". The najas and the Zamindars who were in the

Oissa

f6refront ofthe Sammilani began to organise their own parties, in orderto lay claims to power. But, as we know now, the future did not belongto these groups. The Congress, which looked leaderless after theuntimely demise of Gopabandhu Das and became somewhat dormant,revived with the salt satyagraha of 1930 and the Mahatma's tours of1934 in connection with his drive against untouchability. Some youngCongressmen, led by Nabakrishna Chaudhury and his wife Malatiformed the Utkal Congress Worker's Communist League in 1933. TheChaudhurys gave up their private property in favour of the League.They took great pains to build up a kisan movement and tried toradicalise Congress politics. Finally, the League merged with theCongress Socialist Party organised byJayaprakash Narayan and othersat the all-India level. These activities introduced the concept of a class

struggle and deepened the cleavage between the zamindar leaders ofthe Sammilani and their tenants. It was in this atmosphere that Con-gress entered the election fray of L937.

According to Sunit Ghosh, "The very thought of fighting againstthe combined strength of the resourceful zamindars sent shivers downthe spine of many a Congress leader. Mahatab retired to his ashramat Agarpara practically boycotting the poll. Very few were optimisticof the party's success." The young Kisan Sabha leaders led by Nabak-rishna Chaudhury were, however. confident of the support of the ruralareas despite the limited franchise of the time. Theystood byNilakantaDas, the president of the Pradesh Congress Committee. BishwanathDa5, who later came to head the first Congress ministry was a reluctantcandidate. Thanks to the whirlwind tour ofNehru, and the progressiveimage of the kisan leaders, the congress party baqged 36 out of the 40

contested seats. It soon improved its strength to 37 after a by-electionand attained absolute majorityin the house of60, but not before playingthe game of defection. It lost one member to non-Congress parties andgained one. The leaders too started their intrigues and manipulations.Mahatab re-entered the stage at this point and ousted Nilakanta Dasof the Satyabadi School from the presidentship of the Pradesh Con-gress by a single vote and prevented him from contesting the leadershipof the legislature party through a clever manoeuwe and some mud-slinging. Finally, another Brahmin, Bishwanath Das, who was alsomember ofthe Peoples SocietyofLala Lajpat Rai was chosen as leader,

r57

r58

after some bargaining. He formed the

ever, the Karan group led byNityananda Kanungo of Cuttackdissidence in Congress politics of

Between ICS and IAS

Congress ministry. How-Mahatab of Balasore and

And the first seeds ofwere sown.

Ambitious man that he was, cultivated Subhas ChandraBose through the latter's father and other family members who were

then stafng at Cuttack and got himself nominated to the Congress

working committee at the Haripur session 1938. But, in the very next

year, he changed sides and contributed to the fall of Bose. He aligtedhimself with Sardar Patel, managed to retain his seat in the worlingcommittee and along with the top lea$ers, went to jail in 1942 forspearheading the Quit India movemenf. This enhanced his standingin Orissa politics and he took full advantage of it in the elections of1946 and thereafter. By a curious combination of circumstances,neither Bishwanath Das, the first Congress Prime Minister, nor thekisan leaders like Nabakrishna Chaudhrlry and Surendranath Dwivedicould take part in the elections. The frtt had been disqualified by theelection tribunal and the others came out ofjail after elections were

over.

Meanwhile, Nilakanta Das and Godavaris Misra of the SatyabadiSchool broke away from the Congress out of frustration and helped

organise a separate party, the Forward Eloc, onbehalfofSubhas Bose.

Forgetting their Congress past and acting against Gandhiji's dictumnot to cooperate in the war effort, they combined with the Raja ofKhallikote and the Maharajah of Parlakhimedi to form a coalitionministry during the war years. It lasted albout three years, 1941 to 1944.

During its tenure questionable methods were employed to wean away

from the Congress the few members whg remained out ofjail. By these

actions, the old colleagues of Utkalmaqi debased themselves and dugtheir own political graves. Never could they stage a come-back.

By 1941, Mahatab became the undisputed leader of the OrissaCongress. By then, he saw to it that socialists like SurendranathDwivedi and Malati Chaudhury left the Pradesh Congress Committee,so as to make way for his own nomineesr For this purpose, he used hisposition as head of government and even withheld the return of theCongress fund seized by the British dluring the war. Having thus

Orissa159

consolidated his hold, he turned his attention to the problem of theFeudatory States that straddled Orissa and whose merger with thelilq.** mooted by him even in 1938. The civil disrurbances in theNilgiri state, adjacent to his native Balasore, provided the opening.Nilamani Routray, a young congress worker close to Mahatab at thattime, who in due course became a minister and chief minister, haswritten in_ his autobiography that thanks to Nabakrichna Chaudhury,sthinking (chitttadhara) and enthusiasm (utshaha) and Mahatab,s ad_ministrative ability (karyadal<shata), Orissa forces entered Nilgiri andtook over the administration peacefully through an agreement signedby the prince on November 14, 1947. this eincoura-ged Mahatab topursue vigorously his pet scheme of the merger of Jates. A monthlater' sardar Patel, on the advice of Mahtab, h'"ld u

"onf"."oie ofthe

princes of Orissa states at Cuttack to discuss the question. All cxceptMayurbhanj agreed to hand over their administration to the Orissagovernment on the following New year's day. This set the trend forthe merger_of princely states_ in other parts oi the country. patel, whowas naturally pleased with the role of Mahatab, described him as ,atrue patriot, a born leader of men,,and ,the living spirit in the dramaof merger.'

. ,On January 1., 1948, twenty-four Feudatory States were taken over

by Orissa, peacefully. In two, however, Kharaswan anA Seraikella,which were on the border of Bihar, events took a violent turn. Distur-bances broke out on the arrival of Orissa officials and the police hadto- open fue, resulting in the deaths of some demonstrators. Adibasisofthe Ho tribe, led by Jaipal Singh (later the forinder of the Jharkhandparty), were in favour of merger with Bihar. The Maharajah ofSeraikella too was inclined that way, although he had earlier agreed tomerge with Orissa at the Cuttack Conference. He was also activelytrying to fan the agitation and influence the local prajamandal leadersagainst the merger with Orissa. In these circumstances, the Govern-ment of India thought it prudent to reverse its earlier decision andentrusted the administration of these two states to Bihar, ostensibly asan interim measure. The argument cited in support was that the twostates were not geographically contiguous to Orissa, in view of therefusal of Mayurbhanj to merge and that they could be approachedeasily from Bihar. Soon after, the Maharajai of Seraikella tried to

160 Two Adrttirtistrators : Ihteractio'r Between ICS and'US

question the very principle of merger with the neighbouring British

inOi* p.oui"""" He started agitating for the formation of a separate

poii i"uf unit for all the princely statQs of the Easternstates Agency'

io ti" urrufogy of their counterpart$ in Saurashtra' JVladhyabharat'

il":"rh- ""[tpEPSU.

It is thereforo fair to assume that the rulers of

iJuit"ru urra Kl,araswan had their own reasons for going back on the

agreementofDecemberlg4?.RoutraycitesaletterdatedApril19';;-;; ,he S";uik"ll" .u1", to the Dewan of Bamra' in which he said:

;Ou. pr"t"r"rr"e is for Bihar so that we can lead the other states' if we

ar" oi of the clutches of Orissa'" He added that Delhi had already

shifted from their earlier stand to sonle extent and chances ofrealising

the dream of a separate political estity was better- than ever' It is

iri"*itg r" *te ihat while the Cerritre did not yield to the Seraikella

;i;; i;;;"."p".ate union, Mahatab did not exert himself very much in

undoing the interim arrangement, evon after Mayurbhanj joined Orissa

in 1949. He too must have had his roasons'

As a result of the merger, the aroas and population of Orissa were

more than doubled. The 1951 cenqus showed that the new and old

areasaccountedfor54percentand46percentrespectively'ofthepopulation.Theformerstateshadlargebackwardclasspopulations.ii;i";;;t i" ihe otd orissa districts 45-53 per cent of the people

i"i*g"a a ,ft"se communities, in the new districts that proportion ras

aboue-AO pex cent, except Dhenkanal, which had 50 per cent' As

,ega.ds literacy, the old districts recorded 16 per cent to 23 per cent'

*i'il" th" n.* ii.tricts showed 5 per cent to 10 per cent only, again with

the exception of Dhenkanal, with 1-8 per cent' The former states were

*"* ttiffy and had a largei forest cover' Together' they came to be

"uirca 'gurtlu,'. The old and the uew areas of Orissa thus differed

t"tf""ffy in respect of their geographic, demographic and cultural

featurei. This fact had a profound effect on Orissa politics'

The merger brought in its train serious political and administrative

'orobl"rn . fie OrisJa officers were not readily accepted in several

il"i.r. fft"y *.re pejoratively called "Cuttackis" that is' men of Cut-

,""t *fto haa *tn" to deprive the locals of their legitimate prMleges

urrJ ofporturrities. This term of abuse was applied-to all those who

.u_" i-* tt "

*astal districts. They were considered afiogant as they

behaved as though they were the conquerors' Some of the states did

Oissa

not have an established profesional class and those who held officialpositions did not have the academic qualifications or training com-parable with those of the coastal districts. The suddenloss ofprivilegesflowing from the close contact with the rulers and their highly per-sonalised administration added to their resentment. In retrospect, itappears that nothing much was done to prepare either the officers orthe political elite for the momentous event. The Praja Mandal leaderswho had been carrying on their own separate struggle fol democratisa-tion in the name ofthe All Inclia States Peoples Conference sponsoredby the Congress, began to complain that they had not been consulted.Naturally, they wished to share a piece of the action. An executivecouncil, consisting of three former Praja Mandal leaders was ap-pointed to assist and advise the chief minister of Orissa. PabitraMohan Pradhan of Talcher, Kapila Prasad Nanda of Bolangir andKailash Chandra Mohanty of Nilgiri were the executive councillors.This did not apparently satisfy the people.

There were civil disturbances in some ofthe states thoush not onthe scale witnessed in Seraikella or Kharaswan. Some of tlhe .ulers(c.g., Bamra, Gangpur, Bonai and Pallahara) took advantage of thesituation, aroused the tribal people and assumed leadership. A fillipwas given to the movement for a union of eastern states. The rulersalso supported the agitation of Sambalpurpeople against the Hirakuddam. Important political leaders of Sambalpur were at that timeopposed to the multi-purpose dam on account of the submergence ofa large area of good agricultural land, the inadequate appreciation ofits benefits in terms ofincreased and assured irrigation and power andabove all, the perception that its main aim was to protect lands ofCuttack from frequent and disastrous floods. Strangely, the rulerswere able to win the support of some respectable leaders of Cuttacklike Lashminaryana Sahu of the Servants of India Society. A politicalparty called Koshala-Utkala Praja Parishad was organised with Sam-balpur as its headquarters. The Maharajas of Bolangir and Kalahandiplayed important roles in the organisation, which was renamedCanatantra Parishad in 1950 and its main offrce shifted to Bolangir. Itis said that the Maharaja of Bolangir, Rajendra Narayan Singh Deo,who was the first to sign the merger agreement on December 15, t947was initillly not very enthusiastic about the new party but became its

161

Two Adninistratot : Ihteruction Between ICS and AS

leading spirit, following the rude behdviour of Mahatab at a meeting

at Cuttack called by Sardar Patel to the various complaints of

the princes. By then, Mahatab to have forgotten the advice of

the Sardar not to ride rough-shod the princes. As we shall see

a strong political force in duelater. the Ganatantra Parishad

course and changed the political drastically.

On the administrative side, the of assimilationn and con-

solidation was started in a systematic rlanner after Sivaraman took over

in 1949 as assistant administrator, Qrissa states and cornmissioner,

northern division.' Initially, he was ftationed at Cuttack. With the

addition of Hirakud land reclamation to his responsibilities he moved

to Sambalpur in 1950. As already melrtioned, the Hirakud multi-pur-pose project was surrounded by contrpversies. The people of Sambal-

pur in the areas to be submerged, led by their MLA, Shraddhakar

Supakar, were agitating against it. They saw in it another Cuttacki

device to harrass them and believed that the benefits ofthe dam would

{low only to the coastal people, largely at their expense. It fell to the

lot of Sivaraman to douse all these fires, and win the hearts of the

people and officials ofSambalpur and Garhjat. Thanks to the trust and

confidence reposed in him by the chief minister Nabakrishna Chaud-

hury, who succeeded Mahatab in May 1950, he had considerable

freedom of action. Land revenue adrninistration was streamlined by

abolishing the gountias who were in dssence farmers of revenue. The

different administrative personnel of ihe'princely states were absorbed

in the appropriate services of Orissa after carefully studying the con-

ditions on the ground and evolving fair principles of comparison.

Development works such as roads and minor irrigation were taken up

in earnest by the revenue department. Sivaraman toured the Garhjat

districts intensively, gave a patient hearing to the local leaders and

professionals and tried to make up, td the extent possible, for the loss

of easy access to the new rulers at distant Bhubaneswar. He exhorted

his collectors to do the same. I was orle such collector in the district ofBolangir from 1951 to 1953.

Mahatab did not seem to have realised the gravity ofthe problems

thrown up by the merger. He left Oiissa for the Centre in May 1950.

Months before, reports were in circulhtion about his impending induc-

tion into the central cabinet. He was being mentioned as a possible

Oissa 163

successor to the ailing Sardar in the Home Ministry. There is evidenceto show that the fulsome praise bestowed on him by the Sardar alludedto earlier and the country-wide attention he earned in the wake ofthemerger of Orissa states had kindled his ambition for a role at thenational level. According to Nilamani Routray, the predictions of anastrologer and a palmist also influenced him in this direction. Hisdiscreet silence on the allotment of Seraikella and Kharaswan to Biharand the statesman-like posture he struck on the sharing of the benefitsof.the Machkund multi-purpose project with Madras, despite severecriticism in Orissa, seem in retrospect, to have been a preparation forthe national role. Eventually, Mahatab became the Untn industryminister. He did not, however, last Iong as peter's principle came intooperation. He was dropped after the general election of t952. Con-trary to his confident boast of 1950 that he could, at any time, stage acome back in Orissa, he could not displace Chaudhury immediately.Not being used to being out of power, he began to interfere in Orissapolitics and create difficulties for the chief minister, NabakrishnaChaudhrry. To avoid serious complications, pandit Nehru got himappointed as governor ofBombay. But Mahatab was not to be stoppedfrom his political intrigues so easily. He continued his games till hebecame the,cnly choice for succeeding Nabababu in 195( just beforethe general election of that year. He would visit Orissa on one excuseor the other and criticise the Chaudhury government in public. Hisfriend, Nityanand Kanungo, then a minister ofState at the Centre, usedto canvass for him. A faction known as the Mahatab partv erew withinthe Orissa Congress. Interestingly, Mahatab stoppedtheio"ngstandingpractice of publishing the list of daily visitors to the Rajbhavan, Bom_bay, evidently to keep from the public eye the large number of Orissapoliticians calling on him. A close confidant of Mahatab has told methat in later years he deeply regretted his decision to leave the chiefministership in 1950. I am inclined to think that had he remained inOrissa and brought intoplay his considerable political skills, the historyof Orissa would have been very different. Sunit Ghosh cites a specula_tion by Prof. S.C. Dash of the Department of politics of the UtkalUniversity to the effect that had Mahatab continued as sovernor. hemight have found his way to Rashtrapati Bhavan, like Za=kir Hussain.Prof. Dash did lament Mahatab's hunger for power. I would add that

164 Two Adninistraton : Interaction Between ICS and AS

his penchant for intrigue would always make him an uneasy inmate of

Rajbhavan or Raslrtrapati Bhavan'

According to the account given in Sunit Ghosh's book, Mahatab

"managed to g-et away to the Centre" in 1950 as he found the intrigues

too hoi for him. Nityananda Kanungo and Gopabandhu Chaudhury,

the conservative brother of Nabakrishna were at that time planning to

oust Mahatab. Mahatab felt isolated, as Nabakishna, who was his

close associate in his earlier manoeuvtes against leaders like Nilakanta

Das, had left the political scene duo to a personal tragedy' At that

,"rrritiu" -orn"rrt, Pandit Nehru offerted Mahatab a ministership at the

Centre . Mahatab accepted the offer With alacrity and upset Kanungo's

apple-cart by bringingback Nabababu who was known to be a progres-

sive and a favourite of Nehru. Mahatab thought it was a great

menoeuwe. How fragile were these political friendships and enmities

can be guessed from later events. Mahatab worked to oust Nabababu

and Kanungo canvassed for Mahatab.

Nabakrishna Chaudhury was a teluctant chief minister' His son

had committed suicide during his earlier tenure as minister andhis wife

Malati was immersed in the work of Navajeevan Mandal' His own

heart was in social work among-the tribals. It was a wonder that he

carried on for six years. The trappings of office irked him' He made

a brave attempt to live in the ante'room of the CM's offrce for some

months but hid to surrender to reality, despite his obsession with

unostentatious living. In less than two years, he had to lead his party

in the first general elections after independence' Although he could

form the gwernment in 1,952, it was clear that the Congess party was

declining and the 6anatantra Parishad was getting stronger' Singular-

ly devoiJ of ambition and rather detricient in political-skills, he turned

iown the offers of presidentship oTCongress and chairmanship of the

finance commission that Pandit Nehru made to him, out of regard for

his intellect and idealism. I had the privilege of seeing the correspor-

dence exchanged between the two in which Nabababu expressed him-

self categorically against the practicB 9f collecting funds.for the party'

As recorded earlier, he utilised every available opportunity to increase

the revenues of the state, be it in the case of kendu leaves used inbeedi-

making or bamboos supplied to paper mills and I am proud to have

playeisom" part in these matters. Indeed, he left the political gaddi

Oissa

largely because he found himself a fnh out of water, in the prevailingatmosphere of political intrigues initiated by Mahatab and soughtrefuge in the familiar whters of his Angul ashram and social work.Differences also arose between him and Mahatab on several policymatters and he refused to act according to the bidding of the laiter.Mahatab and his followers tried to paint Nabababu as an ineffectiveadministrator andhis development programmes as failures. Theywereparticularly perturbed at his attitude towards collection of funds forthe party. With the second general election round the corner, severalCongress leaders of Orissa were keen on repiacing Nabababu byMahatab as the leader ofthe legislature party andworkedfor it actively.Dinabandhu Sahu, a leading advocate of Cuttack and a Congressman,acted as the conduit between Mahatab and his followers in Orissa.From some of the letters cited in Routray's book, it is clear thatMahatab had a low opinion of the Chaudhury brothers, was impatientat the slow and timid behaviour of his followers and thought of himselfas the only saviour of the Orissa Congress. At one stage, he eventhreatened to leave politics, in order to egg his followers on to greatercfforts. But he had to wait till October 1956 to achieve his aim.

Nabababu's tenure as chief minister will be remembered forseveral progressive measures. Those deserving mention are theZamindari Abolition Act, the Anchal Sasan Act, the Agriculture Act,the Gram PanchayatAct, the Agriculture Produce Marketing Act andthe Town Planning Act. The second and the third could not, however,bc brought into force then or later. In respect of the last two, I wasprivileged to play a part. Sivaraman was the draftsman of the others,except for the Agriculture Act. The Anchal Sasan Act was, in a sense,the forerunner of the democratic decentralisation and panchayati rajsystem that was adopted by many states in the sixties at the instance ofPandit Nehru, in pursuance of the recommendations ofthe BalwantraiMehta Committee. Some of the above Acts were passed in the veryIast session ofthe Assembly, just before Nabababu laid down his office.It is my belief that despite his reluctance and disillusionment, he wassustained in office by his great desire to place some progressivemcasures on the statute book.

The 1952 elections, it may be recalled, were the first after theConstitution and were held on the basis of universal adult franchise.

165

166 Two Adttrinistratag : Ilrteractiotr Bettveen ICS and AS

The situation was unlike that of 1946 when the franchise was limited

and the Congress enjoyed the aura of [raving led the Quit India move-

ment. Other political parties too had pome up in the meantime. As a

result of these and other factors arisin$ out ofpost-rnerger conditions,

Congress could not muster enough strqngth in Orissa to form a govern-

ment on its own. It was the single larSest party with 67 seats out of a

total 1210. Ganatantra Parishad came next, with 3L. The remaining

seats were filled by socialists (10), cqmmuniss (7), altd others (25)'

Nabababu formed the goverment wlth the support of some Inde-

pendents.

The next elections which were held in 1957' about three months

after Mahatab assumed ofice as chief minister, brought about a further

deterioration in the position of the Congress' This was mainly due to

the failure of the Congress and Naberibabu's government in regard to

regaining Seraikella and Kharaswan '- which were finally allotted to

Bihar by the State Reorganisation Commission in 1955 -- and the

internecine conflicts between the Chalrdhury and the Mahatab groups.

The latter went to the extent of blamirtg the disastrous flood of 1955 on

the administrative failures of the Chaudhury administration, and

describing the development works of that administration as infruc-

tuous and wasteful. Although the Congress still remained the single

largest party with 56 seats (down from 67), Independents became less

(8) and other parties improved their strrength (Ganatantra Parishad 51-,

Socialists 11, Communists 9, and Jharkhand Party 5)' Mahatab could

form a Congress government only with the support of the Jharkhand

party and some Independents who later joined the Congress' This

government did not last long. Defegtions from one party to another

began to take place with alarming frequency and political instability set

'in.

To counter the above trend and help Mahatab, Biju Patnaik, an

industrialist and an active member of the Congress entered the scene.

He was a pilot in the war days and had earned the admiration of Pandit

Nehru for his daring act of rescuing a prominent leader of the In-

donesian freedom movement. After the war, he turned his attention

to industries and built up some units from scratch, with the assistance

of Mahatab and the government of Orissa. The Orissa Textile Mills'Choudwar, Kalinga Industries, Kalinga Airways and Barbil Steel Plant

Oissa 167

came up mainly due to his enterpreneurship. It was widelybelieved thatBiju Patnaik provided the funds for the Congress in general andMahatab in particular. He was also known to h# helped many young

f-q::.::l T:l 1oney. According ro Rourray's uooi, or. n.C. noylrong-trme ctuet minister of West Bengal and confidant of pandit Nehr;;is reported to have said that Nehru thought of Biju patnaik as a daringand_dangerously active young man whose a"tions could not bepredicted. With his flambo),-ant ityle and friendly ways he could easilystrike up a rapport with the former princes. He *a. t'h"refo." of g."aiassistance to Mahatab who had come to the conclusion that somearrangement between the congress and the Ganatantra parishad was

lg"l*Tt to,. removing the prevailing political uncertainties. Finally,Mahatab and R.N. Singh Deo of Ganaiantra form"d u

"o"litioo gou".n_

ment in 1959. This too was short_lived, and lasted only two years.Ironically, Biju, who brought about the coalition was also instrumentalto its breakup.

. According to Surendra Mahanty, the then chairman of the par-liamentary board of the Ganatantra party, the trouble started at theverybeginning. Biju patnaik wrote aletteito R.N. Singh Deo two daysp.i:i l: the formation of governmenr suggesting thar-he, Biren Mitraand Nilamani

f.outray might be uppoini"d at least as parliamentarysecretaries under him. Thissuggestion was not accepted, partly dueto the opposition of Mahatab and partly due to the condition of thecoalition agreement, that barring the chief minister, both partiesshould have equal representation in the council of minisiers. AlthoughBiju tried later to explain away his request as only a gesture of con_fidence in Singh Deo, the first seeds oi surpi"ion'w"i so*rr. Soon,serious differences arose between Biju and^Mahatab. The tatter didnot like Biju's close ties with pandif Nehru and the Congress HighConimand and became lukewarm to Biju,s ideas and interests. Com_menting on the deteriorating relationi between the two, SurendraMahanty wrote that Mahatab tried to defame Biju by every possible

3"3n... 1 t:" .tory was published in his paper, prajaiantra, rhar Bijuhad physically assaulted him afrer inviting him to a Jinner in theChoudwar guest house. This story had to 6e contradicted by a pressnote_issued by the government. Mahanty cites a letter of Biju on thisincident which contained the comn:rf . "This shows the measure of the

168 Two Adnirtistrators : Inieraction Beaveen ICS and IAS

man.!' That Mahatab was inclined to ta$e all kinds of measures against

t*i fti""J. is confirmed by Routray' his admirer. and. associate for

i*".'iiti" ""

irt part found ihat he could not pustt his pet schemes and

il?#i;; i"i"r"," 'r"ouglt

the $overnment' To this was added

;;;;;;;i;;;;ntment and con-fusion amongthe congress workers at

the hobnobbing of Mahatab with the princes' his stay in the Kalahandi

""f""" J ftf.

"ft-repeated statemeni that the former rulers were the

;;;;iil;;"of their areas' Many of them felt that the Congress

"r-^"ft"""" f" ,he Garhjat was being tun-down while the Ganatantra

;;"t:;il;ng itself at the expense of their. own party and was even

,.Vilgi" ."t" inioads into the coastal areas'hitherto the stronghold of

iii"L *iy. According to Routray, thore was- an understanding at the

.*i if-tfr" "o^fition

that the Ganatantra would merge in the Congress

after some time but the events took a different turn' It was no wonder

;;;;tj" set about pulling down the coalition government' For this

purpo.", ft" U""ame the president of the pr'rvincial Congress commit-

i"e u.td dir"cted that Congress should withdraw from the government'

Mahatab resigned in dramatic circumstances' The Orissa As-

*rnbry;;;t u.u"ul io the last week of February 1961 for the budget

r"r.i"'"- fi" g"vernor addressed it aqd the usual motion of thanks was

pu*"d uft". iebate. When the time came for the presentation of the

il"a*" ".r*",".lftl"fttab

got up and announcedthat the budget would

not f,e presented and moved that the Assembly be adjourned' Imme-

al,"t',f,"."^frer, he submitted his lesignation to the governor' who

recommended that the slate be put undeiPresident's rule under article

ili .r,ir" constiturion. Thus tire codlition experiment was brought to

an e.rd after 21 months. According td Surendra Mahanty' it was not as

f C""g.".t "f".e was divided on the merits of the coalition; there were

discordant voices in the Ganatantra too'

Biju Patnaik persuaded the central goverment to. hold mid-term

electio'ns in June 1-'961, without waiting for the generalelections of 1'962'

Congr".. swept the polls under his [eadership' Mahatab kept aloof'

"r,rri"gi rt" *u. u ,,,"'ob"' of the campaign committee' Some of his

ur.o"iir". fougltt as Independents and lost' Congress secured 82 seats

out of fq0. iut th" hopes of stability and progressive government

*iriJ sti brought *itt' ttit characteristic finfare came to an end

pr"rn"*i"fv *irhiis resignation in accordance with the Kamaraj plan

Oissa 169

under which prominent Congress leaders were required to give uptheir positions in government in favour of party work, eiju has iold mithat the plan was originally his idea but was put out in the name ofKamaraj, the Congress President for tactical reasons and that hehimself had to resign, to give it credibility and to shield Nehru from thecriticism that the plan was being used to remove a few leaders frompower. In later years, he did come to regret this hasty action, as theevents moved relentlessly towards the erosion of the vision he hadplaced before Orissa in 1961 and the steady weakening of the OrissaCongress. Routray has written that all this was entirely in keeping withBiju's basic nature. He was always inclined to transfer his interest andenthusiasm from one matter to another. Having demonstrated thatCongress could come back to power on its own, disproving theMahatab thesis of the inevitability of a coalitiori with the ex_rulers andthat innovative projects such as the paradeep port bould be taken upby the stafe government under his leadership, he shifted his interestand energies to the Centre. Little did he realise that the house he builtand the leadership he left behind were too fragile to meet the challen_ges of the times. His own indiscretions contributed to the weakeningof his party. His succbssor Biren Mitra, who described himself as amere Bharata, had to bow out in less than two years. due to the sternattitude taken by the Congress High Commani on certain.incidentsinvolving impropriety and abuse of power, following a CBI report andthe subsequent decision of the central cabinet sub-committee. Moreabout them later.

.. Sadashiv Tripathy took over in February 1965, with the support ofBiju Patnaik. He was preferred to another leader, pabitra MohanPradhan, in view ofhis long experience as minister and his reputationfor honesty and integriy. It was thought that he would be better ableto refurbish the image ofthe Congress. But this was not to be, as hisperiod in office coincided with oust-the-Congress campaign started bythe much respected Nabakrishna Chaudhury at the instigation ofMahatab. Further, differences arose between Tripathy on the onehand and some of his ministers and Biju patnaik on the other. One ofthe issues was his closeness to Nabababu whom he used to describe ashis brain trust. Some ministers led by Nilamani Routray resigned tohighlight therr resentment against a sudden reshuffle of portfolios and

170 Two Administrators : htteraction Between ICS and AS

some allegedly derogatory remark of the chief minister' At one stage'

niju evenlhougbt oi assuming chief mlnistership' -But

eventually the

dispute was paiched up on the intervedtion of the Congress President

Kamaraj after a clear declaration of Ttipathy condemning the move-

ment started by Nabababu and Mahatab. As all this drama was being

played in preparation for the electiond due in 1967, Mahatab walked

ouiof the bongress and formed a new $arty called Jana Congress with

P.M. Pradhan as president and with the specific objective of ousting

Congress from power.

The story maybe continued till 1976 as that was the year I returned

to Orissa after a long spell in New Delhi. It may be recalled that both

of us left Orissa for the- Centre in the sixties. The subsequent political

developments in the state are therefore not as relevant to our careers

as before.

The general elections of 1967 witnessed an anti-Congress wave

throughout the country. Orissa was no exception' Corruption was the

main issue in Orissa. The results showed that the Congresswith 3l seats

(down from 82) yielded place to the combine of Swatantra (the national

party into which Ganatantra Parishad had merged in the meantime)

with+g and Jana Congress of Mahatab with 26, making up a total of 75

in a House of L40. A coalition ministrY of the latter two parties was

formed with R.N.Singh D9o irf Swatantra as chief minister and P'M'

Pradhan of Jana Congress, an erstwhile Prajamandal wolker of Tal-

cher fame, as deputy chief minister. The very first act of this govern-

ment was to appoint a one-man commission of inquiry under Justice

K.R.Khanna to examine the allegatibns against Biju Patnaik, Biren

Mitra, S.Tripathy and some of the associate ministers' Thus the new

era of politics viainquiry commission was ushered in Orissa' R'N'Singh

Deo employed the saml device to bring Mahatab under a cloud' This

he did in the name of integrity in public life as a follow-up of the advice

of the central government while disposing of the memorial of no less a

person than S.Tripathy, the leader of the Congress opposition in the

brissa Assembly. Tripathy had earlier submitted a memorial to the

President bf Inaia, making allegations of corruption against former

ministers including, inter alia, Mahatab and R.N'Singh Deo' It was in-

deed clever of Singh Deo to say at first that he saw no substance in

theallegations and then add that a penson of the rank of a High Court

Oissa

Judge might be appointed to clear the matter in the public mind. Thecentral home minister, y.B. Chavan suggested the name of JusticeMudholkar. The Justice found pina faiie cases in respect of fourcharges against Mahatab. They related to the grant of concessions ofkendu leaf traders in 1957, the grant of chromite lease to Serajuddin,the acquisiton of wealth disproportionate to his ostensible means ofincome and withdrawal of criminal cases against some iron and steeldealers ofCuttack. The government placed the report on the table ofthe Assemblyin October 1970, despite the opposition of Mahatab, thenan important leader of the coalition party. But the governmentrefrained from taking follow-up action till June 1971, when Jana Con_gress broke away from the coalition. R.N. Singh Deo used the Mud_holkar report as an instrument to ward off the pressures of Mahataband to separate him from pradhan, when Mahatab set about the taskof breaking the coalition in pursuance of his own selfish scheme ofrejoining the Congress. That was how the Justice Sarjoo prasad Com-mission came to be appointed. It submitted its report to a new non-Congress coalition Cabinet headed byBishwanath Das after two vears.in May L972, holding Mahatab guitty in three of the fou, allesaiiorrs.The Cabinet decided to file a criminal case. But the home m*inister,Nilamani Routraydragged his feet for reasons ofold friendship despitethe repeated urgings of his colleagues. He felt that the publicity givento the commission's findings was sufficient punishmeni. The matterrested_there_till the Congress ministry led by Nandini Satpathy revivedit in November 1972, immediately after Mahatab resigned from theCongress and began his intrigues to pull down the minisiy. It was thenreferred to the CBI, who promptly filed an FIR. When I was chiefsecretary in October 1973, I was approached for some clarificationswhich were duly given. The second Congress ministry of Satpathypushed the investigation along and a criminal case was started in thecourtofthe Special Judge, Bhubaneswar in 1976, during the Emergen_cy. Mahatab was arrested and kept in judicial custodtforuo." I-"but the case dragged on for one reason or another. Routray tried toget the case withdrawn during the Janata period, when he became chiefminister but Morarji Desai, the pM did not agree. Charges wereframed only in 1981, whereupon the Orissa High Court intervened onthe basis of a revision petition and quashed ihe charge sheet. Thelearned chiefjustice and his fellow judge who gave the judgement did

not go into the merits of the charges but were influenced by the old age

of Mahatab, who was over eighiy, unh the fact that he had already

retired from active Politics'

I may now revert to the main sto{y of political evolution' When

the ti-e came for elections in 1971, aftqr a spell of President's rule' the

oolitical scene had undergone serious Ohanges' The- old actors took on

ffi;".. ;'il"t"it, Jrt" rt"a meaqwhili earned the displeasure of

Indira Gandhi for his support to Sanjiva Reddy inthe Presidential poll

oiisig, *". *.pendedfoi wilful dedance and indiscipline inthe Rajya

i"i-r; ir""ir"t if 19?0. By then, congress had split into two' congress

io;';; a;;t"ss (o) and the latteifs candidate was elected to the

Rajya Sabha from Orissa'

Biju reacted by walking out and forming a regronal party' the Utkal

C"tgr:r..- itt" main contestants in the t97t poll were the Utkal

;ffi;; of Biju Patnaik, Swatantra of R'N' Singh Deo' the Jana

ioni."r, of P.il't' Pradhan, the Congress(R) with Mahatab as its

;;:;;;i;t ;uoae. uoail" usual assortment of small parties like

it,Ji'P, 6Pi cPl(ft) and Jharkhand' The consress(R) emerged as'ir'

.i.g'ltf"rg"rt pa.iy with 51 seatsi mainly due to the Indira wave

sweeoinq the country' But Mahatab was not ailowed to form the

".r"L*""t,. Neithei lndira Gandhi, the Congress(R)-supremo nor

il;"i;;;i ;;',, nu"aini satpathv, were in h*.1'-:l resurrecting

Mahatab. Eventually, u *uiition government- of Utkal Congress'

i;;*n;^ and Jharkhand was sworn-in, with Bishwanath Das as chief

;iil;;. The 82-year-old man, who nad long.since ceased to be active

i.f"ii i". ^.a

*n" was then adorning the Rajbhavan of Lucknow was

found to be the only acceptable leadpr for leading the ministry'

According to Sunit Ghosh,"Inherent contradictions and tension

among the coilition partners over various issues' including renewal of

licences ofkendu leaf contractors on the one hand andbitter in-hghting

irr th" Congr".. over the party leadership oi il"-oth:t again vitiated

ii" potiti*i ff" of the State'" The Praja Socialist Party',with 4 seats in

iit" i.t"*urv, merged with the Congtess and ten members from the

United Front ledby Ganatantra Parishad crossed over' thus raisingthe

6"^rg*.. to*g,h considerably' ,O+ Iu:" ?' Llz the Utkal Congress

led bv Nilamani Routray deciied t0 join the congress(R) and paved

Oissa

the way for a Congress(R) ministry headed by Nandini Satparhy, thena Member of Parliament. The strength of the party at that time was 94but this fact did not contribute to the stability of the ministry. It had tostep down in February 1973, ironically soon after Satpathy was electedto the Assembly from Cuttack after a heated contest. The resignationwas triggered by the move of Routray and some ministers to breakaway, establish a new party and lay claim to form an alternativegoverment. The new party was called Pragati Party and strangely, theold rivals Mahatab, Biju and Singh Deo joined hands for the purpose.It was, of course, widely known that all was not well with the Satpathyministry, as the Congress(R) High Command had followed a policy ofdiscrimination in admitting the leaders of the Utkal Congress and keptout seven of them, including Biju. Nandini's personal prejudices andfears scored over the need for foresight and generosity to erstwhileopponents. The Pragati Party could not, however, achieve its aim asthe state was brought under President's rule on the ground that politi-cal instability had become endemic. Interestingly, the main basis forthe governor's recommendation was the statement of Mahatab duringthe parade of the MLAs in the Rajbhavan that there were many'aya-rants' and'gaya- rams' and the governor should take a decisionquickly. Seventy-four legislators, including Biju Patnaik, filed a wit inthe Orissa High Court questioning the legality of the imposition ofPresident's rule but in vain. The Court contented itself with theobservation that the governor did not honour the convention of allow-ing the contesting party to test its strength on the floor ofthe Assembly.

Mid-term elections were held in February 1974. Congress(R)could not secure a majority, in spite of seat adjustments with CPI. Itwas again the single largest party with 69 seats. The CPI got seven seatsonly. The rnain opponent, the Pragati combine secured 58 seats andthe remaining 13 were shared by CPI(l), CPM(3), Jana Congress(l),Jhark{rand(4), andJndependents (a). Nandini Satpathy of Con-gress(R) came back to power with the support of CPI and the Inde-pendents from outside. She was able to increase the strength of thepartyto 84 in due course through success in a by-election, and defectionof 14 members from Pragati, which in the meantime merged withBhartiya Lok Dal, a national party. But she could not control theinternal feuds. The dissidents struck when Nandini. to promote her

173

174 Two Administrators : Irlteroction Between ICS and IAS

younger son Tathagata, defied the Higli Command by reorganising the

State Youth Congress and thus incurtred the displeasure of IndiraGandhi and her extra- constitutional 4ide, Sanjay Gandhi. Nandini,

who had assumed the leadership of Cqngress in Orissa in t972 ontheslogan of returning to the national mairlstream, sought to strike out on

her own. As a result, through a neat opieration in December 1976,

Indira Gandhi obtained Nandini's resignation, imposed President's

rule for 12 days and installed a new chief minister, Binayak Acharya.

I had a ringside view of this operation as adviser to the governor ofOrissa during the shortest- ever rule of the President. The governor,

who was formerly a High Court judge, was at first reluctant to under-take the responsibility of direct rule and could be persuaded to go

through the constitutional motions, only on the assurance that he couldrely on an experienced administrator familiar with Orissa politics.That was how I came to hold the posts of secretary ministry of shippingand transport at the Centre and adviser to governor, Orissa inBhubaneswar simultaneously for 12 da!s.

Binayak Acharya, who succeeded Nandini Satpathy, turned out tobe a pathetic figure. Sunit Ghosh writes of him as follows: "Acharya'sstint in the office was the briefest so far in Orissa - 123 days to be

precise. He had started with a fund of goodwill which he soon wastedby his indecision and procrastination in certain important matters andhis inability to brighten up the image of the government through drasticmeasures which were called for in the changed situation... Acharya,

was perhaps, too good a man to be Chief Minister."

The Acharya gwernment went the way of all Congress govern-

ments in the states, when the Janata government, which came to powerin the Centre as a result of the post.,Emergency elections of 1977,

dismissed all state governments and atranged fresh polls on the plea

that a fresh mandate of the people was necessary in the changedsituation. The Janata party under the leadership of Biju Patnaik, acentral minister at that time, scored a landside victory with 110 seats.

Earlier, Biju Patnaik, had merged his Pragati party in the BharatiyaLok Dal which in turn joined the Janata. Congress came a poor secondwith 26 seats. The two communist pdrties got one seat each, whileIndependents bagged nine. The voting pattern revealed that the geo-

political barrier between the coastal and hill areas was breached, for

Oissa

the first-time, by a singts 16r-Congress party. Nilamani Routray, thetrusted follower of Biju, became chief mioister at the end ofJune1977.But despite all the favourable features, the ministry was not allowed torun its full course of five years, as the Congress(I) government, whichcame to power at the Centre in 19g0 after the fall of the Janata ministryfollowing the general elections, followed the Janata example of I97iand called for fresh elections in the states. This time the people ofOrissa expressed a decided preference for Congress(I). Janaki Bal-labh Patnaik became chief minister and went otrlo .riubtirt a recordof completing not only his full term of frve years but also a second fullterm till 1989.

I indicated earlier that I would narrate the political developmentsin Orissa till 1976, as that would cover the relevant period but I wastempted to refer briefly to the post-1976 events, odylo take note thatthe.ghosts of the merger of I94j have beenfinally lald to rest, with thefading away of old warriors like Nabakrishna Chiudhury HarekrishnaMahatab and Rajendra Narayan Singh Deo. Biju patnaik is the onlyproNninent leader still left from among those who locked horns in thepolitical battles ofthe last four decades. will the younger leaders havethe political wisdom and ability to erase the historical cLavage betweenthe hill and the coastal areas, help evolve a stable party system andcarry on their friendly rivalries in a dignified manneiaccording to therules of the democratic game? There is no clear answer as yet.

It will be clear from the above that the Orissa of our times was anOrissa in turmoil, a caption chosen by Sunit Ghosh for his book on thisperiod. Instability, defections, frequent changes of governments andmutual mud-slinging were the main features of the political environ_ment. F.G. Bailey, who has studied the political changes up to 1959has correctly said that by 1957, ,'Congress ieased to be a

-movement and

became a party." The social base of the Congress had changed drasti_cally by then. By classifuing the members oflhe Congress LegislatureParty of 1959 into freedom fighers, workers, sypathisers and op_ponents, Bailey demonstrated that the Congress was no longer theparty that fought for independence. Lamentably, it could not attractenough like-minded persons from the hill or ex-state areas and undothe cleavage in the body politic. Bailey has added that while the word'movement' might conjure up the picture of "a tidal wave rushinq

176 Two Adminktraton : Ihteraction Between ICS and IAS

forward uncheckable, irresistible' a [enuine mass movement com'

manding everyone'$ loyalty, when a[ were comrades, when no one

thought of himself, wlen betrayals were few and- therefore more

heinJus, and when pefsonal ambitiots, rivalries and- jealousies were

ruU-.#a in the oommon disciplhdd struggle to winlreedom'" the

reality;s otherwise' Congress in Orlssa had the same divisions as the

"uiio"rf organisation from the vdry beginning,, viz',

-swarajists'Caodhiarrs, tommunists and Socffists' On another plane and in

another day, the divkions took differbnt names such as landlords and

i"nuot., "ou.tut

leaders and hill leadefs, rightists a:rdleftists and above

all, ambitious self-seekers. The origirtal divisions became accentuated

uft", ind"p"od"nce and the merger o{princely states' As years passed'

the leaders of the divisions gave up the pretence of public purpos6 and

concentrated on personal ambitions. Mahatab, the member of the

Quit India High iommand and the haker of modern Orissa became

the master mlnipulator in search of personal power and forgot the

ideals that brouiht him his initial glory. Nababatu, the idealist of

promise, confessid defeat and took sanyas' It was only after Biju burst

,rpon th" political scene that a grand vision of prggres,s was placed

bifore the people and sbme great deeds were done in the larger

interest. But, alas, he too was soorl caught up in personal scandals'

R.N. Singh Deo, the other import4nt leader, though correct in his

general b"ehaviour and attitude, could not rise abovelis feudal origins

ind the demands of his exclusive constituency and develop the vision

of the glory of Orissa as a whole. There was an element of truth in

pfahatib'siheory of 1959 that coalititons were inevitable in the prevail-

ing conditions and that it would be prudent, from-the long-term point

of"view, to make up with the politicalforces centredin tbe garhjat areas'

But coaitions thaf came to be formed in the sixties and seventies were

more for sharing of power by the leaders than for developing the

needed consensus among the social forces and leadrng the people of

different areas on the path of reconciliation and progress' Perhaps'

the time was not ripe for the emelgence of consensus' Some more

churning of social forces and shifting of loyalties of large social groups

would h-ave to take place before thq political scene could stabilise' It

used to be said in thi sixies' half in jest and half in earnest, that it was

O.i..u'. misfortune that all its forrrrer chief ministers were not only

living but continued to be active politically'

Oissa r77

How did this instability affect Sivaraman and me, and the ad-ministration? By and large, we were lucky, as we were out of Orissa bythe time these adverse features assumed alarming proportions. Weenjoyed considerable freedom of action during the major part of ourservice in Orissa. Our advice was listened to more often than not and

our experiments in the field of development were trot obstructed. Infact, Nabababu positively encouraged us to try new ideas and addedhis own. Though the same may not be said of Mahatab, he undoubteCly

wished to do good and the streak of idealism of the pre-independence

era had not yet been smothered completely. Perhaps, Sivaraman'sphilosophy of concentrating on development work and of choosingareas with favourable conditions irrespective ofits political or factionalcolour was partly responsible for the freedom we enjoyed. The visionhe placedbefore his subordinates, the guidance he provided to get over

unforeseen difficulties and the general attitude of encouragement

helped, by and large, many members ofthe bureaucracy submerge theirpetty jealousies and antagonisms born of caste, cadre and domicile. Iwalked in his footsteps. This philosophy earned for us support fromboth sides of the political divide. At one time, there was quite a lobbyin the Assembly in favour of Sivaraman, cutting across party lines.There were, however, a fewinstances which reflected the impact oftheprevailing instability.

The first such instance occurred in 1951--52 and may be attributedto frayed tempers and temporary imbalances generallywitnessed at the

time of elections. Moreover, it was the first general election aftermerger and the stakes were high. On the prodding of Mahatab,Nabababu made some remarks against us, not characteristic of him. Ihave mentioned earlier how I was accused of adopting an anti-Con-gress attitude for acting precisely according to the chief minister's owninstructions on the attendance of public servants at election meetings.Sivaraman too has written about it. He told me in the middle of 1953

about a rumour that Mahatab had identified him before the electionas the main obstacle to utilising the official machinery for promotingthe Congress cause and had even considered a plan to suspend him forthe duration ofthe election on some trumped-up charges. Fortunately,this diabolic plan was not put through, perhaps because Nabababuwould not oblige. There was ng doubt that after the electoral debacle,

178

the Congress tried to look for a scape$oat in the administration of the

northcrn division but finally gave up the attempt. Sivaraman has

written how Kanungo, a deputy ministor at the Centre at the time, was

sent to mend fences with him.

The second instancs occurred during the second ministry ofMahatab. By then, a kind of love-hdte relationship had developed

between Mahatab and Sivaramarl. Although Mahatab used

Sivaraman, the chief secretary for strengthening his own position

vis-a-vis his colleagues by insisting that all files meant for CM must

come through the latter, he tried to put Sivaraman on notice by

instituting an enquiry through a ministers' group headed by Lingaraj

Panigrahi on various development projects undertaken during his

predecessor's rule, mostly in the no4thern division. A fact-finding

committee was also appointed as a folfow-up measure. Mahatab triedto hit two birds with one shot, Nabababu and Sivaraman. That reports

of the enquiry and the committee did not do any damage to Sivaraman

and other officers is another matter.

The third instance took place during the coalition ministry headed

by Mahatab, which was an off-shoot of the preceding political in-

stability. In September 1959, Sivaraman was transferred abruptly fromthe post of chief secretary-cum-development commissioner to that ofmember, board of revenue. According to Sivaraman himself, this was

due at least in part to R.N. Singh Deo, the Ganatantra partner, who

wanted to separate him from Mahatab and deprive him of the oppor-

tunity to anticipate potential intrigues and advise on them. I attributed

it to the hurt ego of Mahatab who was confronted in a gram panchayat

case with the question as to who was the real CN'I, Mahatab or

Sivaraman.

It was our disillusionment with the political instabilitythat led both

of us to opt for the Centre in the mid-sixties. As I had several years to

go before superannuation, Sivaraman advised me to go on deputation,

so I may not get stuck in the morass that Orissa was fast turning into.

His time came after a few months. ds already noted, he left Orissa

because he felt that after the departure of Brju Patnaik and Biren Mitra,he would not be able to carry on with the development work as before.

Oissa 179

He had, by then, become a committed bureaucrat in the best sense ofthe term and his commitment was to the development of Orissa.

,Ironically, Biju patnaik, the man who brought stability and visionto the government in 196j., sowed the seeds of instability in less thantwo years and prepared the ground for politics through lnquiry com_missions. Unwittingly, it was he who made the initial moves. Indiscreetand brave statements apart, in a singular display ofnaivete, he invitedR.N. Singh Deo, the leader of the opposition in the Assembly toenquire into the allegations against M/S Orissa Agents, a firm ownedby Mrs Easwaramma Mitra, the wife of Biren Mitra, his own deDutvchief minister. When he declined, he suggested the public e""ount.Committee. When that too was turned down, he persuaded theAuditor General of India to undertake a special audit. It was on thebasis of this audit report that the Central cabinet continued theirinvestigations through CBI and finally advised Biren Mitra, who hadbecome CM in the meantime, to step down. It is possible that thestrained relations between Biju and the central leaders in the post_Nehru era led to this denouement. The instability thus created broughtto power R.N. Singh Deo, who, as said earlier, started the era of inquirvcommissions. He appointed three commissioners and ironically be_came the subject of thefourth commission notfied by Nand"ini Satpathyin 1973 with Justice G.K. Mitter as the Member. The officialdom waiinevitably caught in the welter of accusations and counter-accusationsof rival politicians. Sivaraman and I had our share of embarrassmentas a result. The former's role in the appointment of Srinivasan as chiefengineer of Paradeep port project and other matters came uD forscrutiny before the Khanna Commission. My notings in th"

"ur" of th"

supply of tubular trusses by Kalinga Industries, a concern of SrimatiGyan Patnaik, wife of Biju Patnaik, were also aired before it. Grant ofconcession to kendu leaf lessees in 1959 by Mahatab on the advice Itendered at that time as finance secretary was cited as evidence ofcollusion with the then chief minister. Fortunately the judges ex-onerated us and several others. They clearly understood the mainthrust of their work and concentrated on the political actors in theinstances brought before them. However, the very fact of inquiry andthe resulting need to defend themselves had affectcd the morale andinitiative of the officials, as I found in 1972, on my return from Delhi to

180 Two Administraton : Ikteraction Beween ICS and IAS

become chief secretary and commissioner. Very few

would come forward to innovate and tliy to achieve set objectives within

a time-frame. The heady days of 1961'63, when the Paradeep Port was

built in record time, PanchaYat

water supply, etc., Pushed through to meet target dates,

those days had gone for ever. The had changed beYond

officials.

recognition. The innovator and the administrator-in-a-hurry came to

be subjected to motivated attacks. A breed of officers had emerged

who aiiened themselves unashamedl! with the politicians in power'

maligned their superiors with impwity and feathered their nests

withiut let or hindiance. I have reldted in Chapter I the attempt inwithout let or hindrance. I have related ln Lnapter I Lrtr iltlvurPr ''r1974 to frame me in a corruption pase by a group of disgruntled

It is interesting to note that the $'eapon of commission of inquiry

proved to be a blunt instrument politically, while seriously injuring the

Lureaucracy. Biju Patnaik and the Congress were routed in the general

elections of 1967, before the Khanna Commission was appointed' His

defeat was mainly due to the anti-Congress wave sweeping the country'

In Orissa, of course, the virulent oampaign spearheaded by three

formidable personalities, Mahatab, Nabababu and R'N' Singh Deo' to

oust the Congress on grounds of cortuption and the need for a change

contributed to the debacle. When the Khanna Commission started on

its labours, Biju declared that he would seek the verdict of the people

again and he would surely win in their court' Justice Khanna ex-

o-nerated Biju of the more serious charges and blamed him for some

administrative improprieties while ntaking an appreciative mention of

his development projects. But even tthe exoneration had no immediate

impact, as people formed their own ferceptions and turnedhim down

ir, ult fou. "oo.iituencies

where he contested in 1971-' The same people

made up handsomely later by electing him from Rajnagar with a huge

majority in a by-election. Unprediotable indeed are the calls of vox

populi. Simrlarly, the Mudholkar and Sarjoo Prasad reports made no

i"ut d"ot on thi political fortunes of Mahatab' Two years after the

publication of the Sarjoo Prasad report, Mahatab secured an easy win

in the 1974 election to the Asser.rblyl R.N. Singh Deo did not live long

enough to test the impact of the Mittd:r Commission report against him'

Oissa 181

That people did not believe very much in the politics of commissionsof inquiry and that some of them merely allowed themselves to betitillated temporarily was proved when Indira Gandhi got a freshmandate in 1-980, despite the adverse findings of the Shah Commission.Here is a lesson to be learnt: Do not destroy, through commissions ofinquiry, the bureaucracy, in the name of fixing political opponents, whoat any rate, cannot be humbled with this weapon. political battles mustbe fought politically in the people's court of elections.

In their eagerness to besmirch the reputation of their opponentsfor the time being (for they combined frequently) and destroying theircareers if possible, the political leaders did not hesitate to disownprojects and policies which contributed to the development ofthe stateand the people. Minor irrigation projects or road constructionprogrammes, undertaken during Nabababu's time by the revenuedepartment, we have noted, were run down in a misguided attempt byMahatab's ministry of 1957. It was not realised that it took a long timeand a determined effort to build up the will ofdistrict officers to ventureinto this field and make up for the inadequacies of engineering depart-ments caused by staff shortages and sudden expansion of workloads.I remember that when I joined in Orissa in L947 | read a speech ofGovernor Trivedi deploring the tendency of engineering departmentssurrendering at the end ofthe year a good part of the budget allocationsand stressing the necessity of developing the culture of timely andorderly utilisation ofallocations. Sivaraman used to refer to the speechin later years while exhorting the collectors to get on with the minorirrigation and road programmes. No doubt, irregularities were com-mitted in the process. But Sivaraman, as commissioner, was willing tooverlook them if the actions were bonafide. One such irregularity wasto drawmoneyon the 31st March and keep it in a sealedbag for meetingexpenditure in the last three months of the working season, April toJune, before the onset of the monsoon. This practice was justified asthere were delays in receiving the new financial year's allocations andthe work could not be stopped mid-way. It was not always possible toestimate correctly the amount needed for carrying on the works.Money was drawn on "abstract" bills, to be accounted later throughfully vouched contingent bills. As a result there were unintendedaccumulations with collectors. They were hesitant to refund the

Two Administratow : Iflteraction Benryeen ICS and IAS

amounts to the Treasury lest they Sduld be questioned under some

financial rule or the other. This was dn instance where rules stood in

the way of correct conduct' As finahce secretary, I therefore took

orders of the minister to provide immunity to those who refunded the

balances il sealed bags and to sanction afresh such amounts if neces-

sary to complete pending works. If I temember right, about a crore of

,ope"s *as i"funded under this dispensation and not more than?SVo

was asked back for on-going works. I also took the precaution of

amending the Orissa Treasury Code to legalise the drawing of amounts

required for on-going works till the 30th June. Thus one serious

irrigularity on which several competeLrt officers were being hauled up

was eliminated.

To show the effect of political instabilityon administration, Iwould

cite the case of Srikant Ghosh who was prematurely retired on May 24'

1,969 from IPS by the R.N' Singh Deo government. After retirement

he has become a prolificwriter onmatters of law and police administra-

tion under the aegis of the l,aw Research Institute, Calcutta' In

Chapter XII of his book, The LiSht of Other Days (Asia Publishing

Houie, New Delhi, 1984), he narrates how he was hounded by the

coalition government of the Swatantia and Utkal Congress parties in

1"96?. Barely twelve days after taking office, the government removed

Ghosh from the post of IG Police and kept him waiting for a posting

for three months as punishment for his refusal to withdraw a criminal

case against some relatives of the chief minister. As an afterthought,

hewascharged orally of excesses in thp state-wide student disturbances

of 1964, wrongful detention during that period of an advocate (since

appointed as Advocate-General) and the arrest of some of CM's

partymen for assault on Indira Gandhi at a meeting in 1967' An

unsuccessful attempt was also made to frame charges against Ghosh'

But, perhaps due to the persistent advice of the home secretary and

chief secretary Ghosh was appointed to a new post' that of Inspector-

General of Police and Director Vigilance in the anti-corruption

department. Ghosh laid the foundation for this department well' The

home secretary and the chief secretary were changed soon after,

ostensibly for other reasons. Intrigues were encouraged in the police,

with the;esult that one J.M. Samal qf the IPS became a favourite and

undermined discipline with impunity. This is the same officer whom'I

Oissar83

retired prematurely during my short tenure as chief secretary from1972 to 1974. ',Finally,', savs, Ghosh ,,one of the disgruntled poiiceofficers of subordinate rank lodged an FIR agaiisi mJtth the stationhouse officer, Lalbag police station under th1 prevention of Corrup-tion Act." According to Ghosh's information, tfr"

"u." *u. institutedwith the connivance of the advocate_general *fro iua advised thegovernment that this was the only way to get rid of him. The case was

. kept pending for rhe purpose of humiliat"ing ch;.i;; it was crosedafier hrs premature retirement under Rule 16(3) of the All IndiaServices (Death-cum:Retirement) Rules, 195g. iirlr*gf, a native oforissa, to avoid future embarrassment, ctrosr left soon after forCalcutta where he settled do*n to a writer,s ca.e_.. bhosh,s com-ments on the coalition are worth recalling:

. "Some of the ministers, from both parties, started minting money

and indulging in nepotism and favouiitism. There had been littlecorruption in the Congress regime; now the lesser fry made corruptiona way of life and Chief Minister, R.N. Singh Deo could not stop them,notwithstanding the fact that he himself was an abre administrator andan honest man. The trouble with him was that as an ex_rnaharaja, hemaintained the tradition of the.old princely states by keeping factionswithin the services alive for his own benefit. ge depended on hischosen coterie of advisers drawn from his partymen aod'u fe* s"le"t"dcivil servants including some police officers:, ftus aij.f ;;;;battered, divided, factious andcorruption_riaden Uureaucracy, whenI was inducted as chief secretary in 1g2. How I withdrew in disillusion-ment after less than two years and sought a posting at the Centre hasDeen narrated elsewhere^

-,^^ "l:^0,,.,,.,I..i1 instability took its toll in regard ro matrers of policy

also. Nothrng llustrates this better than the twists and turns of thepolicy on kendu leaves, a minor forest produce, used invnapping bidis.I have written earlier about the monopoly system ioiroduced inNabababu's time under the cover of Orissa Kendu Leaves ControlOrder and the subsequent steps to maximise the revenues from thissource. Later, in a speech delivered at the inauguration ofthe TattwaPrachar-Kendra, Balasore, on July 14, 1963, N;bababu revealed thatthe kendu leaf traders used to contribute Rs. 12 to 1.3 lakhs per annumto the congress party in the fifities, that the annual donation had even

184 lwo A{ tr'rtt)

gone up to Rs.30 lakhs and that he stopped all this by changing the

svstem and raising the "u"nu"

of the staie through auction' much to

;ilil;il;iis party colleagues' He took extraordinary steps to

;;;;i;;*ssoi, Iviahatab,-f'om exploiting fis ltem ror partv

purposes. His system ensureJ that fair ptrices wer" gt"": to th"--{ -",1:

if t""u". and 5b percent of the revenue from kendu leaves was gven

as grant-in-aid to the gram falchallts ftt..9.*"t"li:lt works and

welfare of the village commuiities' ihe coalition government of 1959

"t"iirft"a iit .ystin, as the Ganatantna party was committed to allow

the tenants to collect ^"0 t"ff ii" f"u""s of ihe private lands on their

own. This was euphemism tbr freedonlr for all political parties to make

;;;;ffi;"pi,'s" or tn" state' The vear 1961 saw a return to the

previous system, since 'tt"ogiht""d

by a new law in accordance with

i;; ;;;;;-""iation of th"e orissa Taxation Enquirv committee

A;;;. ;;,."otng was introduced but licensees were employed as

before. The Orissa Kendu Leaves Coiitrol Order was contested in the

""t.i.. ft *^ nna y declarecl in tra viies in Akadasi Pradhan vs' State '

of orissa and orhers larn isi: sc 1047), although the prescribed

;;*;;;"*". struck down' The Supreme Court held that in a state

monopoly the state must carry on theirade through its employees or a

corporation owned o. cont'oiled by iL It added that itwas open to the

state governmen, ,o uppt"'i ug"nis' ptovided they worked on behalf

"i!"i"tr*"", und noifot themselves and proper agreements were

executed for the purpose' The subsisting agreements were nullified as

a result. The state gou",,'."nq ther,eipJn' modified the system by

engaging separate ."t' oi- pto"ot"T*i T,"""^ and-purchasers of

;;;?k".;;""i compatible *ittt tt'e other' The Act and Rules were

,-"ti"J i" rso3 and again in L969: 'Although this system was more or

less continued till 1979, ke"du leav"s continued-to be a sensitive

subject, as might be g""tJ from the fact that i1 flSyed among the

"if"'nu,i,oo, ."f!rred to thtKhanna Commission ofl'96? and the Mitter

8:ffiff#;is?j. in; N"'dini satpathv ministrv Q2'73) tnattv

decided to entrurt,t "

trua"io ".tate

coiporation. As narrated earlier,

ii"Jin" pt*r"g" of i"itiaiing the f,rrst moves for.atendu leaf policy'

participating in its impre'neoi?tion' devising the state trading formula

I"a ntiaiy F""fitatini ttre establisirment oi a state corporation' To

borrow Sivaraman's term' it may be described as a serendipity'

Two Administrators : Inipraction Benveen ICS and IAS

)

New Delhi, 1964 onwards

When Sivaraman and I arrived in New Delhi in 1964 and 1965

within six months of each other, Lal Bahadur Shastri was the Prime

Minister. Prof Humanyun Kabir was presiding over the ministry of

petroleum and chemicals, which I joined as joint secretary. C. Sub-

ramaniam was the minister for fogd and agriculture which Sivaramanjoined as secretary, agriculture. The latter was at that time heading the

Fertiliser Distribution Committee set up by the central government in

addition to his duties as chief secretary-cum- development commis-

sioner, Orissa. In my ministry, I was given the charge of chemicals

which included fertilisers. Thus while production of fertilisers was my

subject, its distribution was Sivaraman's. This fortuitous arrangement

helped us to work together more or less as in Orissa. My secretary

Nakul Sen's lack of interest in fertilisers and his general indifference

to matters other than routine, compelled me to seek other outlets formy ideas. In this, Sivaraman was of great help to me' He has written

in his reminiscenses about how we jointly tried to promote investment

in fertiliser factories by foreign parties as well as in the public sector

and finally succeeded in opening up a new sector, the cooperative,

which has since exceeded our expectations. In doing so, we had to cut

through the formal procedures, circumvent the finance ministry

headed by the redoubtable T. T. Krishnamachari and his equally

imperious secretary, Boothalingam. I have related how TTK made

baseless allegations against me in his blind anger against an industralist

186 Two Administratory : Interaction Between ICS and IAS

and open bias for another. Sivaraman too has recorded how foreign

exchange needed for the import of fertilisers was extracted ftom an

unwiliing and unreasonable finance ntinistry, thanks to the Prime

Minister and his secretary L. K. Jha. Sivaraman gave a short informalnote to Jha for the use of PM, who lot cabinet's approval on it,circumventing the usual lengthy procedpre.

Lal Bahadur ShastrLs prime ministership came to a premature and

tragic end on January 11, 1966. His dirminutivr: size had misled almost

everyone about his abilities and potential. Sandwiched between PanditNehru and Indira Gandhi, he has not been given the credit that is due

to him. Had he survived the tensions inherent in the Tashkent agree'

ment and ruled longer, important developments might have takenplace in the politics and governance of the country. It may be recalled

that he had just eased out TTK and was widely believed to have drawnup plans for other changes. But God willed otherwise. Shastri, who is

often cited as the only central minister to have resigned, assuming

responsibility for a railway accident, shouldbe rerrembered for certainimportant decisions he had taken. First, as transport minister, he hadpiloted the Merchant Shipping Act which created the ShippingDevelopment Fund Committee. This committee, more than any othersingle factor, facilitated the rapid increase of national tonnage.

Second, as prime minister he was responsible for the historic decisionin 1965 to cross the Punjab border into Pakistan, thus mnveying the

unmistakable message that an attack on Kashmir would be treated as

an attack on India. He is reported to have said that he wanted to arrivein Lahore before the Pakistanis reached Srinagar. Third, he createdthe slogan 'Jai Jawan, Jai Kisan' and dramatically linked the battle on

the border with the internalbattle for food production. Fourth, he tookthe unprecedented step of importing dwarf hybrid wheat seeds fromMexico on the advice of his agriculture minister and secretary against

the sullen opposition of the mandarins of the finance ministry. He canbe said to have given a shove to the GrEen Revolution, then lurking inthe shadows. Fifth, it was again he who launched the \rhite revolution'of milk, by creating the National Dairy Development Board. It is notwidely known that this idea was born of a clandestine visit to a villagein Kaira district with Dr V. Kurien, after successfully dodging the

-security net. During this visit, he broke bread with an ordinary villager

'New Delhi, 1964 otwards187

in his hut and learnt the problems of the poor at frst hand. I must addrnar r was grea y gratified at Shastri,s appointment as prime ministeras I had laid a wager on him in an informal discussion'in uK in 1963on nAfter Nehru Who", the favourite speculation of the iime. I had saidthat Shastri would be the most acceptable candidate after Nehru andthat he had the necessary politicai couage and skili to kill whennecessary (that is, take an extreme step) in the public interest andsuccessfully make it appear a suicide. ail thi., a".pit" tn" fact that Inever had occasion to meet him. Indeed, rarely was so _uch achievedby a man of such low profile in so short a time.

I have since come across prof C. p. Bhambri,s Bureaucraqt attdPolitics in India (yikas publications, t97L) in which the learnedprofessor tried to prove that in the early posfilehru era, that is duringShastri's tenure, bureauctacy acquired great power at the expense ofthe political executive. The evidince ciied in support comprise suchfacts_ as Home Secretary L. p. Singh's conflict with Home Minister G.L. Nanda in regard to security arrangements during the anti_cowslaughter agitation, the growth of the pM,s office, Shasii,s reliance onhis secretariat and greater visibility of his secretary Jha. He assertsthat'bureaucracy, though an essential part ofthe poiiii"ui.yrt"_, _ort|1c1ion11de1the complete control and direction ofpolitical leader_shig" a1d that "only then, purposeful nation_building i"tiuiti". *r, b"unde-rtaken in a developing society.,' Readers wilino doubt judge.whether these observations are fair to the men, bureaucrats or ofher-wise, who had contributed to purposeful nation-'building activities suchas the green and white revolutions. If some bureau"ruti b""o-" _o."visible or sought after than others, is it legitimate to conclude thatbureaucracy as an institution has become fowerful or has begun tofunction "outside', the complete control and direction of politicalIeadership? At one point, Bhambri refers to the penciant of panditNehru to dictate the minutes of cabinet meetings as an instance ofascendancy of political leadership. Even assumiig the veracity of thestory of PM's special efforts in regard to minutes, tire inference drawntherefrom ryould be unwarranted. It would amount to trivialising the1yl3s

of political leadership and the higher bureaucracy. NeitherNehru nor Shastri had such a narrowview oftheir relations with seniorcivil servants. They considered them as partners in the manasement

of the great tasks of the nation and not as mere servants to bt controlled

;;il?;;A at will. The scarce hirman resource that the top

il;;;; ,he highest level represdrt can be best utilised only on

the basis of mutual trust and respect'

Indira Gandhi succeeded Shastri in the third week ofJanuarY 1966'

Uorurji Oesui wno had contested the leadership of the Congtess party

il;;ftlly, became tU" O"poty primeminister after sometime' in

il;ilfi.'ilrhen this minisiry'tookoffice, the country was facing

r"""t. ptJf"*s which cried out for imrnediate {t:mign' Ouite a few

of them had surfaced au'tg ii" later part of Nehru's rule and had

;;;;;" acute with th" ye""l Ahhough shastri took some initiatives'

he died before any notable progress Jould be nade' It now fell to the

lot of Indira Gandhi and her governmbnt to come to-grips with these

oJle^ml:' t shalt describe th? *ot" lmportant of them as they will

il.il" ""i

,rt" t"ture of the times in which Sivaraman and I worked'-airr,,

"r r.gurds the strategl of f'W Vg1nf11'-Itmaybe recalled

that whenshastri came to powei, the Third Plan(196L66) was half-way

through and the preparatory work{or th: F"*llj]il:as to begin'

Doubtshadariseninlg6?,aftettheChineseaggtession,aboutthe

"fifiiu "f the country to implement the plan as envitased' Defence

ffiil; ;";offi utt ofitt" uuuilable resources and-attention came

ioi" "orr""rr,.u,ed

on what was called the core sector of the plan under

ifr" r"*iy *it"d slogan, Defence With Development'. Inadequacy of

;il;;;;u"tio"" u"a ihe conthuing rise in their prices raised

ouestions about the strategy and priorities of the plan' Shastri spoke

ffiil;Ji;;;"vt";#;' att""tio" to agriculture' As regards

i"u* irrau.t.i.t, h" took th" uit'" that it would be better to concentrate

;" Hdil;-,rt" ta* of the previous plans. and to shift the

;;;J;;;d-matiring and-quiot<-viading projects' These ideas

*"i" Atm"a as plan holiday by the-press' However' soon after

ii".,.i. a""ft, ,tt work on the Fourth Plan was given up and the three

;;;;J;;t"c witt eprii uoe came to be described as vears of

i"rruuf iru"*. 1t -ay be recalled that the foreign exchange reserves

il;;; * i"* io o"tot"' isa5, that the Governor'.Reserve Bank

insisted on a loan of $200 million from the World Bank in order to save

;;;;"ily;;from collapsa The rfVorld.Bank agreed' subject to the

condition that the .up"" i" devahled' As pressures mounted' the

New Delhi, 1964 onwards

government had no option but to complywith the unpopular condition.Accordingto one account, the decision to devalue was taken in Decem-ber L965, soon after the exit ofT. T. Krishnamachari from the finance

ministry sometime before Shastri left on his last journeyJor Tashkent'

Shastri must have found himself in a bind as a result of the ongoing

hostilities with Pakistan. The trio consisting of Asok Mehta, the deputy

chairman, Planning Commission, C. Subramanianr, the food and

agriculture minister and Sachin Chaudhury, the new finance minister

is reported to have played the crucial role in this matter. The devalua-

tion decision was not, however, given effect to till June 1966, although

the World Bank released a part of the sanctioned loan (Rs 150 crores

out of Rs 675 crores).

The delay was due to Shastri's preoccupation with the Tashkent

deliberations, his sudden death and the political changes that followed.

Indira Gandhi naturally took time to study the matter. She also paid a

visit to Washington in March 1966. It isrsaid that at first she hesitated

to implement Shastri's decision on account of the strong opposition ofKamaraj, the Congress president, but had to go along in view of the

commitment already made by the Reserve Bank Governor and the

Indian Ambassador in USA to the World Bank and the latter's prompt

release of the first instalment of the loan. It was unfortunate that

although the rupee was eventually devalued to the agreed eKent, the

country did noi get the promised loan of Rs 675 crores in full as

non-project aid, not to speak of additional project loans, from the

World Bank or USA, as hinted during the visit of Indira Gandhi.

Additional food assistance was all that flowed but it was in driblets,

deliberately calibrated by President Johnson so as to enforce perfor-mance by the Indian government on various points, particularly

agriculture. Thus, devaluation did not prove to be the panacea it was

meant to be. India's difficulties got compounded with the failure ofthemonsoon inl967, the second successive year. All energies had to be

concentrated on increasing food supplies immediately and on planning

for higher agricultural production in the short'term. In these cir-

cumstances, the concept of medium-term plan for five years took a

back seat. The Plaming Commission tried to maintain a semblance ofplanning by talking about the core sector and by highlighting the

relationship between agriculture and certain industries like fertilisers

189

190 Two Administraton : Inftroction Between ICS and IAS

and plant protection chemicals. Prof D. R. Gadgil, wto succeededAsok Mehta as deputy chairman carried this process further and keptalive the national faith in five year plans, despite the ascent of differentpottical parties to power in different statEs, till propitious times arrivedfor the framing of the Fourth Plan.

It was against this background that the new agricultura! s&ategyof intensive cultivation and the new policy of encouraging foreigninvestment in fertiliser industry were adopted by the Government ofIndia in the late sixties. While Sivaraman played an important part inthe evolution of both these policies, I can claim a share in the case offertiliser industrypolicy, as already desctibed in the previous chapters.To my surprise, from 1967 onwards, I began to experience difficultiesin processing the proposals for new fa0tories put up by some of thelarge industrial houses in collaboratiort with foreign fertiliser com-panies. This was despite the general acceptance that indigenousproduction offertilisers had to be augmented quickly, and large housesalone could subscribe the equityfunds required and attract the neededtechnical and financial collaboration from foreign parties.

To understand these ideological prgssures, we have to go back alittle. In L960, Nehru had asked where had the 42 percent increase innational income since 1950 gone. To atrswer this question, the plan-ning Commission appointed a committee under the chairmanship ofProf P. C. Mahalanobis, one of its mombers. It was required toascertainwhere the gains ofthe plans had gone and whether the wealthand the means ofproduction had tended to concentrate in a few hands.This committee gave its final report in 1969. Meanwhile, another body,the Monopolies Enquiry Commission appointed in April 1-964 underthe chairmanship of K. G. Dasgupta suggested, in October 1965, thepromulgation of a law to control monopolies and restrictive tradepractices. An interesting set of facts also came to light as a result of aresearch study undertaken, with the financial support of the planningComgrission, by Dr R. K. Hazari, the economist, who later becamedeputy governor, RBI. It showed that despite the provisions of the.Industries (Development & Regulation) Act, the Birla House hadmanaged to secure several industrial liccnces by adopting the deviceof submitting multiple applications under different names and lobbyingfor them systematically. This finding created a furore in parliament

New Delhi, 1964 onwards 191

and led to the appointment of the Industrial Licensing policy Inquiry(ILPI) committee n t967. Hazari had pointed out tf,at the familiescontrolling large industrial houses were able to have effective controiover large investments by the public and financial institutions, whiletheir own investments remained small. He called it a .breedingprocess'in some cases and an .unbreedingprocess'in

some others. Allthese reports, by implication, questioned ihe socialist rhetoric of theruling party and its commitment to prevent concentration of wealth ina few hands. The ILpI committee put forward the concept of a jointsector, in which the state or the central government was to hold aibest! Fergent of the equity. Soon this idea gained currency. The publicfinancial institutions began to insist on a minimum contribution bv thepromoting industrial house to the equity of the new ventures. In somecases, they also introduced a condition in their loan sanction to theeffect that they would have the option to convert the loans, partly orfully, into equity at a futue date. As a result of these developments,proposals for new fertiliser factories, each costing several crores ofrupees and with a substantial foreign exchange component, had tocross many hurdles, before licences could be issued. This observationapplied equally to the petrochemical industry where some other fac_tors like intense competition among the states in the name of balancedregional development and the emergence of state industrial develop_ment corporations as nominal sponsors prevented correct decisionsbeing taken on the economic size of the plant and its location. Theyoung Turks of the ruling party closely watched the government,sdecisions on industrial licences and pounced upon the ,iini.t"r,

"oo_cerned, whenever in their view, undue favour was shown to atry largeindustrial house. In these circumstances, the ministers tended tobecome over-cautious and allowed important cases to take their owncourse through official channels and inter- ministerial consultations.And officers who tried to push the cases were liable to come undersuspicion and subjected to unjust charges.

I recall how the minister for industries, Fakhruddin Ali Ahmed,tried at first to alter the minutes of the Licensing Committee, anadvisory group created by the statute, under the ihairmanship ofsecretary, industries. When this was objected to as illegal and unsoundby me and representatives of other ministries, he iesorted to the

:

192Between ICS and IAS

practice of delafng the issue of the on selected items or issuing

them after recording his own

a""itioo. Aftler some time, a speci{l licensing committee was con'

Jti*r;i, under the chairmanship of $ecretary, p:lt"t":t:Td "h:T::cars for ile fertiliser industry with a rliew to expediting decisions. This

l"fp"i ,o to-" e:nent. Buiit too was stymied by cautious secretaries

*ii *Ja not give their comments promptly for considerationby it'

I recoltect how-Bakshi, the banking secretary, had to be persuaded

rf,".li*g iAay to gve his commetrts, adverse as they were' on the

p.".lt" ,ft"t ,ft"y *oia Ut placed verbatim before the cabinet' If I

,e-e-b"r right, his comments on K' K' Birla's proposat to set up a

i".,ifi.". f""[.Vin Goa with the collaboration of US Steel Corporation

r^" i.," .fgft, ptges. It must be added that new fertiliser factories could

"o^" iotJb"ing, only because Indfua Gandhi took a pragnatic view'

Af,"t "ff

, i *". It:"tai clear that new fertiliser factories were absolutely

".*ntiui; not all could be set up in the public sector and those in the

pti""-," "tj"i",.ector

could notLe established or run without the active

iarticipation oflarge industrial houses and their foreign collaborators'tc;;r'h*; pointi out that iolitical considerations' such as the need

fl, raising forrd, fo, the party, played a decisive role in clearing

;;pl;,iJns for licences by h;g; lndustrial houses' despite radical

postures.

Another important feature of the time was the growing concern

fo, tn" foo, anl the feeling that the five year plans had not been

uaar".rirrg their problems. The Nehru-Lohia debate of mid-1'963

Gli;;"? the paucity of definite information on the income of the

p"1."wnil" N.i"u st;ted that the average daily per capita income of

u ooo, rnuo *u. fifteen annas, Ram Manohar Lohia' the leader of the

iimyukta So"iulist Party insisted that it was no more than three annas

and ihat 250 million Indians lived at this miserable level' Thereupon'

eminent scholars took up special studies' Out of these' the poverty line

was born. It was based on the minimum nutritional diet in terms of

calorie intake and other essential basic needs' A working group set up

il;;Pi;;"c Commission in \962 recommended a natio-n{ mini-

ri"rn-"l<p""ai ire of Rs 20 per capita per-month at.I'960-61 prices'

;;;;;-;;; were diffe'e"ces ato"g scholars on the quantum of

New Delhi, 1964 onwards 193

calorie intake, the concept of mean consumption expenditure was' by

ffi'#;il;iJ ro''pt*oiog pu'po'"'' .rh" iij:t in rupees

however, was adjusted oot ti-J t time with reference to the price

level. Emphasis came to * ffi-fi ihinke's oo.tn" groups near and

below the poverty line and special ptog'ammes were directed towards

them. Sivaramuo *u, *J-JiiJp.rron. who advocated the

benefi ciary' oriented aPProact'

These trends were accelerated by the disilhrsionment with com'

munity developm"n' p'og'uttt "nd

ianchayati raj'started with great

ffi;:;ffi.. i'tr'Jr'rii"s' kusu- Nui''t book Blossoms in the

fi;;il;iloi t'ow *'" benefits of the communitv development

#@;=;: ryq :,", :l#H j[ il'*'j'tiltfJ#Til:i:irural areas. The cooPeratlv

;;A;ffi";l;'-"i" i1t "lo' pu't or the funds made available

under the state partnersnip unA tft" integrated- scheme of RBI in

pursuance of the Rural Cre'tlit Survey Committee's recommendations

;";;;;Jty tr'" ti"r'"i"tasses to the detriment of the poor' S'

K. Dey, the minister for community development' cooperation and

ilJd;;;i;",, *no r'ud tn" tuu "onddence

of Nehru and provided the

il#;'f#l"r those programmes' lost his importance soon after

;ilfji. ili, alttrough fe continued to preside over the depart-

ment. He was shifted to th; department of mine-s and geology' when

lndira Gandhi fo't"a th" govetn-ent in 1967 after the general elec-

tions' In disgust, he resignJd soon after' At about the same time' one

state government "fttt unoiitt Utgan to dismantle the panchayati raj

svstem by supers"aing tn"LoJi"' "-"d

pottpottiog the elections to them

i#ffi6:'iilp"rititi"* "iiie staie tevet dia not relish the idea of

;;"l;il;; at"ii i" th"';;; or d""""t'"li'ution' rival centres of

influenceintheirconstltuenciesbycontinuingthepanchayatirajbodies. Indira Cu"af i too diJ

"ot sha'" the vision or enthusiasm of

her father for those instruments of democratic decentralisation' Her

ostensible reaso" *u' tr'uiif'"f*ere in the hands of the rural rich and

,h" poo, did not receive sufficient attention trom them'

In this context, the report of the Rural Credit Review Committee

(D68:69); of which Sivaraman was a member' came in handy' It

recommended that speclJfficies be set up at the district level for

small farmers, *u'gi"uf futfr*s and landlesi labourers' Thus Small

194

Farmer Development Agencies andLabourers Development Agencies

Two Administrators : ,lnteraction Between ICS end IAS

Farmers and Landless

districts. Chronicaity drough-t-into existence in selected

:j:i:1". \_ru (rtrrcauy drought- affected areas were also idenffied andemployment generation programme Were underfalren Tt i. *,^. r^,^_undertaken. This was laterrenamed the Drought_prooi Ar.* on my suggestion,

['""',;;ffilveoimakiog'ild."#;i;ffi "",#i.'Jff "ii11:

eKent possible.

It was as a result of all these developments that when the time camefor rhe resumption of the five ye". pd;;;;;.^i#1rrun_ro1**launched with the twin aims oigr&il;r"doril.. rr," ro"o, orplanning was shifted to sragricurtire""d"il";;;,#:{tTj,}ufi :",;;i:;:T: j".[T*lf c:rlbi Hatao by Indira Gandhi g""

" t rrfr", p"ri to thi, t."od.Crash Scheme for Rural rm.ptoymJrt (caREt;J;;ched in 1971in every c. D. block, with a view to provide unskilred work to the rurarpoor. I have written in an earlier chapter about my.oiJir, .up"ruirirrg

3o9..".finiog rhis programme aurini ott-ti. dh;;;r;. ManoharLohia brought the problems of the p'oor * th" ugeJu of tfr" pofiti"Aparties, along with the measures intended to .uiU rrrooopolistic ten-dencies.

, The ideological pressures ofthepost-Nehru era were accentuatedby certain political developments. The 4bsence ofa charismatic Ieaderlike Nehru at the nationailevel, the "*rk;;;f ;;;;;;;;and tinguistic groups and their growing ,;;;;;;; the generalresentment against the rising corruption in the ruling party and otherfactors contributed to these deu"toprrr.ntr. R._ ,r""l"'f,_ Lohia ofthe Samyukta Socialist party. pleaded fo, u uoit"a

-froit against theCongress and for organisino

lle bggkwald *"". fonCj i"ro a potentpolitical force. He [ad con'siderable influence in Up and Bihar. Heactively promored unprincipred alliances, ..r"ry a -a.i""t

the con_gress,despite the far-sighted warnings of oiher so"iuii.ir.^io. "*u_pt",Nath Pai declared: 'A few ounces.of,swatantrism, sorn" aictato.shipof the proletariat, a little of Hindu outlor"fir_ *itt a dash ofdemocratic socialism rnav bring a few more vote. U* *iti l_ u. g."u, ufraud as is the Congressj' Chu'.uo Si"gt of Up U.it" l*uy fro_ ,t

"Congress in 1967 and formed a new parly, ithe Bharatiya Kisan Dal withthe middle peasants (Jats, Ahirs "r,i

r"fuirj "rl,.liiiTupp"rt.. rrc

New Delhi, 1964 onwards

Akali Dal of Punjab started an agitation for a separate Punjabi Suba

and won it. In Orissa, as noted earlier, Mahatab took away his follbwers

from the Congress and formed a regional party called Jana Congress'

In Tamil Nadrr" the Dravida Munnetra Kazhagam (DMK)' a regional

party came to the fore at the expense of the Congress. The Communist

iarty of India, which began to show najor internal differences in

regard to matters like Indian attitude towards Moscow and Peking'

Sino-Indian wa r of 1962 and the socio-political character ofthe Con-

gress government, split into two in 1964. The new party came to be

called CPI (Marxist). The communist movement underwent a further

break in 1"967, when the peasant uprising of Naxalbari against the

Marxist government of West Bengal brought to the fore a group ofextremists under the name of Naxalites. They formed a separate party

called CPI (Marxist-Le ninist) in 1969, after two years of unsuccessful

attempts to maintain unity. It was widely believed that this faction had

the moral and material support of the Chinese communist party who

had in the meantime become disillusioned with the CPI(M)' Besides,

the two rightist parties, Bharatiya Jana Sangh of old and the new

Swantantra partywere readyto give a fight to the Congress. The former

was patronised mostly by the urban trading classes and Hinduchauvinists in the Hindi-speaking states. The latter, comprising mainly

of former princes, zamindars and advocates of free enterprise had the

blessings of C. Rajagopalachari, formerly of the Congress and cam-

paigned vigorously against what they called the licence-permit raj.

The general elections of 1967 recorded the highesr ever voter

participation - over 61 percent. This did not, however, result in clear

majorities, either at the Centre or in the states, with a few exceptions.

Coalitions of different parties came into being in many states with the

sole aim of capturing power but their internal contradictions did not

allow them to last long. West Bengal and Kerala proved to be excep-

tions to some extent. In these states, United Front governments were

formed under the leadership of the two communist parties, CPI inKerala and CPM inWest Bengal. At the Centre, the Congress emerged

as the single largest party in Parliament and formed the government

under the leadership of Indira Gandhi with the tacit support of DMKand the Russian-oriented Communist Party oflndia. As a consequence

of such diverse support from outside as well as personality clashes in

195

196

rl.-.-.1-. I r | | | I LrIIle pafiy, Sen0tls stresSes and sfran$ began to appear in the relationsof the Prime Minister and her associates with the Congress Presidentand his associates. The latter, who cdme to be known as the Syndicate,were rather suspicious of her close (ontacts with the communists andthe USSR. They were also disappoi4ted at her tendency to ignore theregional party bosses and act independently, contrary to their fondexpections at the time of her as leader of the parliamentary

took a dramatic turn atthe timeinAugust 1969,after the death

winginJanuary 1966. Their diof the election of the President ofof Z.aktr Hussain. The Congress Board, whichcontrolled by the Syndicate, decided through a majority of votes, tonominate one of themselves, N. Sanjiva Reddy as the partt's candidateReddy as the partt's candidatefor President, against the specific wish and repeated warnings oflndiraGandhi. She decided to strike back. .Accordingly, she relieved MorarjiDesai, a member of the Syndicate, ofthe finance portfolio and forced

him to resign from the governmerit. She followed up quickly withnationalisation of commercial bank and succeeded in giving the im-pression to the public that the Syndicpte was standing in the way ofsuchprogressive measures. When Nijalilgappa, the Congress President,

appealed to Jan Sangh and the Swatantra party for support to his

party's presidential candidate, her associates described it as a betrayalofthe Congress principles. She herself denounced Nijalingappa's talks

with what she called the communal and rightist forces, called for aconscience vote and actively worked for the victory of V.V. Giri over

the official candidate of the Congress whom she herself had proposed

earlier before the election authority"

Nijalingappa's attempts to clariS his position were of no avail. The

Syndicate, which found itself outmafiouwed, threatened her with dis-

ciplinary action for her anti-party dctivities. Although well-meaningcolleagues tried to bring about a compromise and keep the Congress

united, the party split in Novembdr 1969. The working committeeexpelled Indira Gandhi from the Cqngress. I4 turn, her supporters inthe AICC (rt4L out of 705 elected members) held a separate meeting

and passed a vote of no-confidencq against Nijalingappa. The lattergroup cam€ to be known as Congrpss of the requisftionists or Con-gress(R), as they had earlier requisitioned the meeting of AICC. Theother group which supported the Syndicate was called Congress(O),

197New Deltri" 1964 onwards

'O' standing for Organisation' Having thrs projected herself as a

;";;; Jt progr"Iriu" policies in the intra-party conflict' Indira

;.##il;""pri$ ui""a*itt'tt'" ldeas that had earlier been put forth

;;;t,ly;.'day thoughts'' Soon followed several measures like the

il;;;il; and'Restrlctive Trade Practices Act'1969 and the con-

stitution of the statutory commission thereunder; the attack against

prfrl,'pt.."" "f

former princes; revisio" of- the dghts assured to ICS

iinJ"i. io tfr. Constitution; canalisation inthe public sector of imports

""1 ""p-" "f *fected items, ostensibly to curb malpractices; renewed

i-J"li. "t p"uric and joini sectorq'itress on self-reliance in regard

io Lpita gooar; strict control over foreigr collaboration in industries

""4 iot"ii coniributions to lndian organisations' etc' The Constitu-

ti"r*"t ":t""ta"d

on the plea that some of theprovisions were standing

i" ii" *"v "f

i*plementing ptogressive measures' In this connection'

the judiciary also came uni"t "tta"k

for their interpretation of the

Constitution.

Thc underlying tone of the various measures adopted during this

period was to biing the large industrial houses under greater scrutiny'

to regulate their expansion selectively and to make them more respon-

sive io the ruling party's needs' The provision in the Companies Act

p".*f,,f"g a*"ions to political parties was rep-ealed' But clandestine

contributions were encouraged' As a result of all these initiaiives after

i969, thor" ofu, who had to deal with industries with large investments

urrJ iot"ign "ottaborations,

technical or financial' were not always sure

what line"to adopt in examining individual proposals' Forces unknown

to u, -d unr"Lt"d to the merits of the proposal wolld intervene

o"""p""t"afy. nor example, nobody could predict confidently whether

u "ur"

*oulib" ,ent to the Monopolies commission or delayed for one

reason or another. Retrospectively, I have to admit that few proposals

uf .y a"p"u*ent of chemicals were in fact sent to the Monopolies

co*Lirriorr, although they came from large industrial houses and

irr*tu"d for"ign collaboration of one kind or another' I never knew the

reasons for it, then or now. Indira Gandhi played the game skilfully.

The post-Nehru period is also known for administrative reforms'

Lal Bahadur Shastrr-s government appointed the Administrative

R"for-, Co*rnission (aRC) on January 5, 1966 under the chairman-

ship of Morarji Desai. When Desai joined the government as deputy

198 Two Administraon : Interodion Between ICS and IAS

prime minister ta L967, K, Hanumafthaiya, a member, took over aschairman. He.continued till the conrrnissi"i, "".pf.t"a its work, al_though there wero some changes io lt,

"onrporitiJo-in- the meantime

due to death or other reasons. The commission set up twenty studyteams, thirteen working groups and pne task force totver the vastarea referred to it and secured the cfopslsfisn of a large number ofknowledgeable persons. It was required to consider "the need forensuring the highest standards.of effitency and integrity in the public. services, and

-for maling public adrtinistration a frt instrument for

carrying out the social and economic policies of the government andachieving social and economic goals ofdevelopment al ako one whichis responsive to the people.".Based on the reiorts of the study teamsand working groupg its own inquiries and evidence gathered by it, thecommission submitt€d twenty reports [n all, betweeJ1966_20, contain_ing 537 recommendations. Not all of them are relevant for this book. Ishall deal at some length with those fecommendations which have abearing on the LAS.

I became aware of the ARC soon after my return from USA inOctober 1966. I tried to associate myself with one or two workinggr:u.p:, as I was bubbling with ideas on improving the efficiency oTadministrative personnel such as mid-care er tiaining, modern manage_ment methods, case studies, emphasis on merit in filling top posts, etc.,and was keen on getting them incorporated in thJreforms to beproposed. Some of those ideas wero already being propagated byothers. I was personally gratified to see that in its fiil'reco--enda_tions on personnel administration, the commission laid great sress onthe development of professionalism in the services and-the introduc-tion of management education in the training syllabi, wherever ap_propriate. However, I was surprised at the concerted attack that wis

, being mounted on the IAS, by the reprosentatives of technical serviceson the one hand and the academicians of public administration on theother._Both highlighte4 the classic contrlversy of generalists versusspecialists and argued that the tasks ofplanngd development in policy-

Saking as well as implementation were such that siecialists rathirthan_generalists should be put in important positions, particularly inthe Centre. In their view, the IAS as.it was constituted was no longeradequate, Systematic attempts were made, ths,rgh a spate of articles

199New Delhi" 1964 onwards

and speeches by some rnembers of the academic community and

techaicrats, to convince the ARC and the powers that be that a

fundamental change was required in the policy of filling the country's

top administrativJposts.lt is against this backgro r"d that the commis-

sion made its frnai recommendation: the role of the IAS was to be

limited to land revenue administration, magisterial functions and

regulatory work in some areas of state administration only' If carried

ooi, it ,uould hou" confined the IAS' by and large, to the states, whittled

down its all-India character and excluded it from a meaningful role at

the Centre. Interestingly, this recommendation nullified the

commission's own observation in its report on personiel administra-

tion, "that the intention of having All India Services was mainly to

ensure uniformly high standards of administration in all States in key

activities, to provide for interchange of experience between the States

and the Centre and to obtain, where needed, the experience of State

Administration at the decision- making levels at the Centre."

The Government oflndia rejected the above recommendation and

decided to continue the role and functions of the IAS, while taking

important steps to improve its efficiency, e'g., better training, mid-

"ui"". "ou.r"., .tudy leave, strict enforcement oftenure ofdeputation,

. rotation of officers through career planning' encouragement to

specialise at senior levels according to aptitude, promotions to top

posts through selection on merit rather than seniority, etc. The govern'

ment also took care to see that the top posts at the Centre in scientific

or specialised departments were filled by competent technocrats and

thus allayed the fears of the specialists. Generally, a balanced view

came to be taken by all concerned in due course. Time was, when a

group of academics, with the support of a Young Turk of the Congress

in Parliament, successfully prevented an able IAS officer with impec-

cable academic credentials from joining as director, Indian Institute of

Public Administration, on the ground that it ought to be filled only by

an academic and not by an administrator. Thus the controversies raised

by ARC took time to settle down. Sivaraman was cabinet secretary

when the decision on ARC's recommendation concerning the IAS was

taken. His vast experience, his good relations with specialists and above

all, his own example helped to steer the discussion away from claims

200

and counter-claims ofopposinginteres(s to the genuine needs ofpublicadministration. .

While the ARC was debating adnhinistrative reforms, a new ad-ministrative structure came into being qt the Centre and soon gatheredstrength. It was the Prime Minister's pffice (pMO). I have referredearlier to the appointment of L.K Jha, A senior civilian, as secrerary toPM in 1964 and the ascendancy of the bureaucracy during Shasiri,stenure, as perceived by an academic. Biut it was after the induction ofP.N. Haksar of the Indian Foreign Service as secretary to pM in thebeginning of 1967 that the office acquired its real importance. IndiraGandhi's own needs and concerns in hcr fight with thi Syndicate, herendeavour to project a progressive image and above all to keep a closewatch over her cabinet colleagues transformed it rapidly into a power_fr organisation, extending its sway oycr the regular ministries anddepartments of the central gov€rnment. The first result of Haksar'sappointment was said to be the declirle in the influence of DineshSingh, the external affairs minister, who in the name of assisting thePM, had gained access to all the important papers submitted for theconsideration of Indira Gandhi. He tried to retain this privilege afterHaksar joined but failed and found the distance between him and pMincreasing with time. Finally, in 1971, he was dropped from the cabinet,Haksar, who was said to have competed unsuccessfully for the ICS inhis youth had developed a certain disdain for the members of theservice. He was also known for his leanings to the left and for hisfriendships with Marxists and regular members of the communistparty. A man with a vision, determination and considerable manipula-tive skills, he was widely credited with a plan for utilising the ad-ministrative machinery of the central government to bring aboutfar-reaching changes in accordance with his own leftist thinking. Heproved to be an asset to Indira Gandhi, who too due to politicalcompulsions opted for a 'left-of-centre, hug., to quote her ownphrase. He succeeded in putting persif,ns with leftist views in keypositions by attracting outside talent. While some of them, like Suk-homoy Chakravarthy, Ashok Mitr4 BS. Minhas, R.I( Hazari andKumaramangalam made significant contributions in their respectivefields, their impact on administration as a whole fell short of the hopeof radical transformation. For, the 1odl61 zd6inistrative svstem was

New Delhi, 1964 onwards

far too vast and complex to be changed drastically through the inter-

vention of a few individuals, however powerful or strategically placed'

Large numbers of functionaries had to be shaken from their inertia,

motivated and moved for performing the national tasks' Leftist orien-

tation by itself was not adequate. In fact, in large areas of national

endeavour, such orientation led to contrary results' There was break-

down of discipline, growth of absenteeism, unfair practices, and loss ofproductivity. The banking sector is an example where the unions led

by the two communist parties brought unbearable pressure to bear on

the managements and went on to create, what came to be called islands

of high wages and to dilute services to the customers to an alarming

degree. Mention may also be made of the ianovation of minister

Kumararnangalam to combine the posts of secretary, steel ministry and

chairman, SteelAuthorityof India (SAIL), whichhad tobe abandoned

soon after the end of the term of Wadud Khan, who was specially

inducted from the private sector to conduct the experiment. Haksar's

role in this innovation is of no mean order. If only he had devoted his

considerable energies, influence and abilities to revamping the estab-

lished services, he might have made a lasting contribution. In his search

for quick-fix remedies and his disdain for the services, he tended to' undermine, perhaps unwittingly, the authority of the cabinet secretary

and give the impression of being the linal arbiter in service matters as

the closest adviser to the PM. I have related earlier the stories of my

delayed promotion and of P. R. Nayak's humiliation. I may add that my

contact with Haksar was extremely limited and that my observations

are based on my general understanding of the events of the time and

my discussions with colleagues at all levels.

It must be said to Haksar's credit that he assembled a group ofable officers in his secretariat to examine the various proposals that

came for consideration and provide independent advice to the PM.

Two IAS officers, G. Ramachandran and V. Ramachandran of the

Tamil Nadu and Kerala cadres respectively, deserve special mention.

They worked efficiently and unobtrusively and provided the necessary

balance. The former, I know, had authored the 'stray thoughts' thatprovided the ideological underpinning for the declaration of Emergen-

cy and became the basis of the 20- point programme of the late

seventies. Haksar also persuaded Prof P.N. Dhar of tle Delhi Institute

201

202

of Economic Growth to join the pMO as economic adviser. Theprofessor finally took Haksar's place ajter the latter's superannuation.Although his personality was less aggrpssive than Haksar's, he couldnot curb the interfering and domineeridg image of the pMO in view ofthe political developments since 1969.Ilrdira Gandhi had progressivelyconcentrated all governmental and org[nisational authori$ in herselfin order to ensure her supremacy over her political colleagues and thePMO became auseful instrument for thepurpose. However, prof Dharmust be given credit for making the cabinet secretary the nodal pointfor the operations in connection with the all-India railway strike of1973, though he personally kept a low profile. I remember how whenmy ministry of shipping and transport was faced with a similar strike inthe major ports, he did not yield to the importunities of my minister ofstate, H.M. Trivedi to take the lead add advised us to approach thecabinet secretary and follow the procedure adopted at the time of therailway strike. With the declaration of Emergency in June 1975, thePMO itself came to be overshadowed by the extra-constitutionalauthority exertedby Sanjay Gandhi. Some offrcers who were preparedto do the bidding of Sanjay were planted in the PMO ind that was howthe strange phenomenon of the unsigndd typed slips, supposedly con-taining PM's wishes, as related in an earlier chapter, came about. It wasno wonder then that the PMO carne to be characterised by the criticsof the Emergency as a distortion of the cabinet slntem of governrnentand the Janata government of Morarji Desai decided to dismantle anddowngrade it. But the institution came. into its own with the return ofIndira Gandhi to power in 1980. The politied ethos since has been suchthat the PMO has grown from strength to strength and has come to stayas an essential part of the machinery of pentral government. The fall ofRajiv Gandhi and the formation of a Janata Dal government in 1989have made no difference to this set-up, Thus, an important administra-tive structure which originated during our time, forcing us to adjustourselves to it, has come to stay.

Political turmoil, disillusionment with the live year plans and thedebate on administrative reform combined to bring to the surface anew concept: commitment. The politilcians who were hard put toexplain the failure of their policies made the buresucracy thescapegdat. They said that the civil service, which had no stake in the

203New Delhi, 1964onwatds

programmes of government, could not be expected to deliver the goodi

in tile. t"dira Candhi herself spoke about the need for,commitment

in the civil service. When asked to explain the meaning of the word, she

replied that the public servant should believe in and be committed to

thi principles enshrined in the Constitution' However, the term came

to be inteipreted as unllinching loyalty to her person and palty' This

was perhaps the result of the propaganda of some of her over'zealous

supporteri and others close to her' Further, punitive action against

some officers who had acted against her wishes or contrary to her

interests must have lent credibility to this interpretation, When Jagiivan

Ram denounced the neutrality of the civil service as a 'hindrance' to

the successful impllmentation of government policies in his speech as

Congress President in December 1969, the impression gained ground

that the party in power was trying to be deliberately ambiguous about

the meaning of commitment. It was interesting to note that both Indira

Gandhi and Jagjivar Ram cited only one example of the prevailing lack

of commitment, viz., some officers practising untouchability in their

offices by having separate pitchers of water for the scheduled castes'

Nobody could support such a practice. But to denounce, otr the basis

of this single, clearly illegal practice by some, the time-honoured

principle of political neutrality and to postulate the theory of commit-

ment on a very wide front as a remedy, looked like an attempt to

obfuscate. As events unfolded, the government's deeds were more

eloquent than its words. Public servants loyal to the powers that be

came to be recognised as committed,while otheis were not' This trend

has beeu carried further, to the great embarrassment of honest and

efticient officers, with frequent changes in the political power struc-

tures even within the party, not to speak of replacement of one political

party by another. It is a sad commentary that all political parties,

without exception, have since been practising the theory of commit-

ment in regard to civil services, thereby weakening their efficiency.

To complete the account of our times, I nray now refer to some

major ovents of the seventies and eighties. ln 197!, the first ever

mid-term election was held for Parli,ment, delinking it, for the first

time, from the state elections' Congress(R) secured a two-thirds

majority and Indira Gandhi formed the government. The statb elec-

tioris held soon after in early 1972 returned Congress(R) to power in

2M Two Adrninistraton : I4teruction Between ICS and IAS

several states. This was true of West Bbngal too, hitherto the strong-hold of the Marxists. This spate of viJories was attributed to thecharisma of Indira Gandhi, her slogan of ,garrb i hatool,and the after-glow of the successful Indo-pak war and Bangladesh op.rutio*. Nodoubt the disillusiomrent with coalitiot politii and people,s yearningfor stabfity contributed to this denouetment. The

"d-ir"r. as well asthe critics of Mrs Gandhi had hoped tllat she would use her consider_able power to give a new direction to economic policy and initiateme:tsures to solve the various problem$ that had accumulated duringthe sfudies due to the absence of a strong government at the Centre. Butshe concentrated on destroying her opponents, humbling potentialrivals within the party, preventing independent centres of poweremerging in the states and centralising all power, governneirtal andorganisational, in her own hands. In this process, she began todowngrade the importance and autonomy of the various institiltionscreated by the Constitution. Naturally, she had to rely on a few carefullyselected persons for carrying out theso exercises. When there was apublic outcry against these persons and the growing corruption, sheresponded with the callous statement that corruption was world-wideand the position in India was no worse! This and some other factorsinfuriated Gandhians like Jayaprakash Narain, who launched a move-ment to oust her. A call was given for total revolution and the internalsecurity forces were exhorted to disobey, what was termed illegalorders. Other groups dissatisfied with the rule of Congress(R) alsojoined the movement. Mrs. Gandhi letaliated by questioning thebonafides of several Gandhian institutions for receiving financial con-tributions from foreip sources and by instituting an inquisitorial in-quiry. Meanwhile, the judgement on the election petition filed againstMrs Gandhi by her rival candidate Raj Narain was delivered. She washeld guilty of corrupt practices for using the official machinery duringher election campaign. Though the instances in question were not of aserious nature and the margin of votes ilr Mrs Gandhi,s favour wassubstantial, the judge declared her election void, The way in which shereacted to this slunning blow set the tone for the countr/s politics andadministration in the next ten years. She declared internal emergency,suspended fundamental rights, arresrod most of her political op-ponents and,ruled with an iron hand lilte a dictator. ThE parliamentwas allowed to meet periodically and &e absolute majority she com-

205New Detlti, 1964 onwatds

manded therein was utilised to amend the law so as to nullify the

il;;t." against her election, and to make changes in the Constitu-

il":il;';"ock tr.ut-"nt dij uring about greater discipline in the

g"""rt."., machinery and some improvements in public services'

Although an attempt was made to provide a1 laeglo$ll cover to the

entire Jxercise through the implementation of the 20-point programne

with socio- ""ooorni"

objectives, it was clear to all that the main

purpose of the emergency was to ensure Mrs' Gandhi's position and

io*"r. So *h"r, the imergency was lifted in February 1"977 and fresh

elections held, the electorate rejected her and her party in a decisive

manner. That the combined opposition under the Janata party label

which came to power in 19?7 did not stick together long enough and

was in turn rejected by the electorate equally decisively in favour of

Mrs Gandhi and her Congress in 1980 is another story'

The above train of events had a profound effect on the

bureaucracy. Many of its members abandoned the conventional

neutrality uo6 n61-partisanship, some willingly, hoping to benefit

financialiy, others from fear. The much-touted theory of commitment

that had sounded reasonable in terms ofthe Constitution and develop-

ment goak tame to bewidely appliedto all kinds of situations and those

founJuncornroitted were victimised. The Janata government which

was expected at first to open a new chapter, pursued the same harmful

policy and harassed a number of officers through motivated enquiries

and in other ways. The raucous political debate, the accompanying

violence and the factional fights in the seventies left no room for calm

thinking on long-term policies and concerted action on development

plans.

Fortunately for me and Sivaraman, the events referred to above

had no major impact on us, perhaps because the positions we held and

the subjecis we handled during this period were not directly involved'

In other words, we were on the periphery of the boiling political

cauldron. By the same logic, we could not influence policy' For ex-

ample, as additional secretary, community development I tried in

tgit-iz to persuade the government to review the panchayati raj

institutions and revamp the blocks through labour employment

schemes but failed to evoke a favourable response' I had to be content

with a crash scheme for a short period. In this effort, I came dangerous-

206

ly close to some of the institutions w under the guidance ofj::o.llu::l*"rain.Mytransfe-rt"orii',u;""#ffi .ilil";;fromtie emba'assing iffects of the grolving polarifi;"ffi;

^;;:9:i11,""1*. Gandhians. I have alrpad! n".r"t"J _y "*periencesduringthe Emergency. In the ca." or siu-a.ao, *io *i, ui."- .rrui.-

man, National Agriculture Commi.,ar! r\auon:u l\grlculture commissio4 and member, ptanning com_mission, there were occasions when he was called uioo to uaot" o"schemes under the 2O-point programme, such as bonded labour, con_sumption loans in rural areaS, etc. Gono were the days when he couldconfidently plan, execute or supervige ambitious programmes ofagricultural development across the length and breadtil ofihe country.His recommendations in the mfi report of National AgricultureCommission remained by and large on pup", as the ministers had notime or inclination for such things.JagiiVan nam who knew Sivaramanwell and had at one stage acknowledged the wisdom and soundness ofhis.suggestions was no exception. He ioo was in the thick ofthe ongoingpolitical battle.

When Mrs Gandhi returned to South Block after her electoralvictory of 1980, she was not the same pprson as before. She had theencumbrance of her younger son, Sanjay who over the past six years orso had built for himself the reputation of an unscrupul6us and ruthlessoperator with total disregard for constitutional or ligal niceties. Whileher vote - gathering power was again established beyond doubt and hersupremacy was acknowledged almost ritualistically by the lesserleaders, one could not be sure if she had the same hoid over the statechief ministers of her party. We in the Reserve Bank learnt to ourdisappointment that her instructions on financial discipline would notbe honoured by some state chief ministers. A.i.. antutav ofMaharashtra, for example, not only flouted her directions on waiver ofagricultural loans and allocation of alcohol to industries outside hisstate but also involved her, through a blever manoeuwe, in ques-tionable acts of fund-raising.

Many explan rtions have been offered for Mrs. Gandhi,s failure todeal boldly with the economic problems and to come out with a set ofcoherent policies, even when at the height of power, i.e.,l97I- 72 and,1980-85. Ideological commitments, political constraints andtemperamental disabilities have been citdd as reasons. While each of

207New Dellti, 1964 onwards

them played a part, I am inclined to think that another factor played

,t " J"ii*i""."1.. Mrs. Gandhi was not a policy-oriented leader' When-

ever she initiated new measures, her main concerns were purely politi-

"ui""Ii". p.itoe motive the strengthening of her. position and power'

i'". "-"-pr!,

nationalisation of binks was conceived as a weapon for

a"f"u,itgilt" svndicate. Abolition of priry purses ofthe former princes

was to weaken the Swatantra parry a;d eliminate a political rival' It has

t""r r"ia that Indira Gandhiwas "a leader with attitudes rather than

ooiia.r. *itt u point of view rather than a coherent ideology." she was

;;;;;ilr;;J;okher boldest decisionswhen she felt threatened and

had to fisht for her survival as a leader.

CHAPTER-TV

MY REFLECTIONS

L

Administrative Ethics

Looking back on the achievements and failures ofa 40-year-career

in public administration, mostly in the IAS, I feel that some of my

thoughts will be of use' or at least of interest, to students and prac-

tition=ers of this art. I shall set them out in this chapter, for the sake of

convenience. under five broad heads: administrative ethics; ad-

ministrative methods; administrative structures; administrative leader-

ship and administrators and policy making. As some of the ideas are

.elevant to more than one subject, some overlapping and repetition

may occur and I ask the reader to bear with me. Some ideas I have

learnt from Sivaraman; some have been evolved from my own ex-

perience. While claiming utility for these ideas in the present and in

ihe future, t am fully conscious that the social and political environment

has undergone many changes, and will continue to do so' They may

become more complex. and difficult and the forces facing the ad-

ministrator more insidious and assertive and less tolerant than in our

times. An administrator worth his salt has to be not only responsible

but responsive to the changing circumstances. He is destined t9-liv-e in

the public eye and contend with the social and political forces' He has,

theiefore, to develop his own armour and his own instruments for

practising his chosen profession to his own satisfaction as well as to the

satisfaction of the public. It is my hope and wish that the ideas of this

chapter will be of some help in this endeavour.

212 Two Adninistraton : Interaction Between ICS and IAS

Administrative ethics is obviousljr concerned with the rightness orwrongness of the administrator,s conduct. To adopi iie ,ignt cooAu"t,one should first know what the right cOnduct is in-i giueo situatioo

"nathen have the will to adopt it. These twp asp"cts _e r?".red to in ethicsas rne probrem of insight and the prcibrem of will. Tbe first is relatedto one's intellect and the second to one,s character. We are familiarwith persons who have acute moral iqsight but habitually ignore whattheir insight or conscience approves.There are also others who are menof good moral character but through dullness of intellect or under-standing fail to perceive theline of rig[t conduct and waste their goodintentions upon wrong ends. We also khow that it is not always possibleto distinguish clearly the right from the wrong, The dilemma oiArjunain the great battle of Mahabharat is a classilc example. In sucn si'tua_tions, one needs the aid of external advice or pasi example. This isparticularly true of the young and the inexpirienced. Sages andphilosophers of the East and the West have therefore suggesied thatthe young should be first trained to obey the right rules of conduct asevolved by one's forebears on the basis of theii experience. Aristotlesaid,that the goodness of moral ch4racter -*i *." before thegoodness of moral intellect. In other rliords, one must act as if certainforms of conduct are right and certain things goo4 taking thei.,igiiness and goodness on trust from others, before one is in a position tosee that they are right and good for oneself. Training, discipline audeducation are the methods recommended for promotiag such initialright conduct. So, I believe, that administrative ethies slhould be in_cluded in the initial training courss5 sf xdmiais,llators and experiencedpersons should be asked to share their e4periences, so thit properlessons might be drawn.

In my opinion, there are six important principles of administrativeethics. They are:

1. The administrator should be fully committed to the countrysConstitution, the established law and the rules of hls service.

2. India being a parliamentary democracy and a federation of states,aqd governments in India being formed by political parties, theadministrator must be politically nOutral. "

Adninistrative Ethics

The administrator should be dedicated to tle faithful implemen-

tation of the policies set forth by the then governme-nt in power,

with total disiegard to his own preferences and predilections'

The administrator should as far as possible, remain anonymous'

Each administrator, being but a part of a larger system, must

recogrrise that he has certain obligations to others in the system.

In his relations with the publig he mustconduct himself as a public

servant.

A close look at the above irrinciples will reveal that they overlap

at some points and may have to be reconciled with each other. For

example, commitmenftb the Constitution under the first principle may

sometimes briag one into conflict with the political neutrality of the

second principle and the faithful implementation of policies under the

third, if the political parties in power at various levels adopt a collision

course. Similarly, anonymity may not sometimes go well with faithfulimplementation of policy and the picture of a public servant.

As regards the first principle of commitment, there is .ooi" "orr-

fusion. Some have converted it i",practice to commitment to the person

of the prime minister, chief minister or an. y leader in power at a point

of time. This tendency is to be deplored anil guarded against by every

administrator. There is great need to understand fully the implications

of what are often called the basic features of the Constitution. Fun-

damental rights, secularism, social equality, democratic functioning

and federalism are among these basic features. Directive Principles,

although not justiciable, must be borne in mind in the formulation and

implementation of government policies, or in other words, in the

conduct of administrators. I may recall how in 1950, just before the

Constitution was brought into force, a circular was issued to all ad'rninistrators that the rule oflaw should prevail thereafter and that the

administrators should know that they had no power outside the law.

This was meant to remove the widespread impression among the ICS

officers that they had some executive powers besides those conferred

by the laws of the land. Some of them used to mduse influence and

the willingness of the people generally to obey their executive instruc-

tions for power. The administrator must, therefore, note that he must

213

5.

4.

5.

always conduct himself iuarway! u{rrqucr mmsett rtr accordznbe with the laws of the land. Forthis purpose, he should familiarise himself with afl the a,,rc r-,r D,r--with all the Acts and Rulesin force, particularly those to his area of work and alsoendeavour to disseminate the basic underlying them amongthe people with whom he is to work or interact. As I havefound in practice, one of therrap in *Vhieh this can b" doie is to ensu.ethat a few c3s._, *" registered undeF every law in for"e. fhi. aauic"apptes particularly to social and economic offences.

The importance of secularism in i country with so many diversitiesas ours should be self-evident to every administrator. Being in aposition of influence, he must set an example by practising tbeienetsof secularism not only in official matters but also on sociai 6sca.1.ns.One must deliberately cultivate frien<lships sr social contacts outsideone's caste, language and religion. I have come across, during mycareer, groups being formed on the basis of these divisive factors andofficers participating in them and exlribiting partisan and non_secularattitudes, harmftrl for the smooth conduct of administration. One mustscrupulously refrain from using langupge, caste or religiou for seekingadvancement in one's cqreer, for criticising the advance of others, oifor defending the culpable. In my view, there is nolhing sci absurd as toassume that those ofone's owtr castei lalguage s1 lsligion can do nowrong or have better claiqs than otheis-on ote's considiration. In onesituatioq I found a senior administnator, the chairman of a publicsector company, refusing to invite a Muslim director on the board toa dinner held at the end ofthe board rneeting in official premises andat official cost. When he could not be persuaded to itrvite the lonedirector on grounds of propriety and slecularism, a colleagae and I hadno option but to decline the invitation

In this context, I have a word for tlhe brothers and sisters who jointhe services against the reserved quotds. They must remernber that thereservations that facilitated their entry into the s-eivice were meant toassimilate them with the rest and not fur nurturing their separateness.While it is the duty of others to welbome the entrants tlrough thereserved route into the mainstream and treat them as their o*nbrothers or sisters in service, the latter must reciprocate fully. This isthe stuff of which espit de corps is bulilt and no bureaucracy, as MaxWeber, the great sociologist has said, can be efficient and successful

215Adminisnative Etltics

without such a spirit. I would also stress that the enhants against the

reserved quotas should take great care not to practise.reverse dis'

crimination 'while dealing with cases that come up for their considera-

tion. Public administration is not meant to avenge the past but to do

justice in the present. In this connectioq I recall my pleasant surprise

at the strident message of President Machel' during my visit to Mozan-

bique, a former PortuguQse colony, to his countrymen, condemning

revirse racialism. Slogans to this effect were displayed all over the

country.

An important corollary of the rule of law and the principle of

equality before law is impartial conduct. Various factors maypress one

tobe partial and the most insidious of them is kith and kin. It is one

thing to ensure that one's relatives and friends receive equal considera-

tion. It is quite another to promote their interests in preference to those

of others. A distinct line has to be drawn. This piece of advice is

particularly addressed to thosewho are posted to their states of origin.

An indicated earlier, I served most of the time outside my native state

and I reckon this helped me agreat dealin practising impartiality. AfterI settled in Hyderabad following retirement' a large number ofpersons

describing themselves as relatives came to press me to recommend

them to friends in service for one favour or another. They would

preface their requests with the .statement that it was my duty as a

relative to help them and cut corners for the purpose. I realised how

lucky I was in being allotted to Orissa. I could undprstand the hard-icaps that my Oriya colleagues were loaded with from the very begin-

ning of their careers. So I congratulate all those who are allotted tostates other than their own and exhort the others to recognise the

handicap and mould their ccnduct accordingly' In my view, the usual

assertion that a native is in a better position to understand the problens

and aspirations of the people of a state is not a complete truth and the

attendant disadvantages outweigh the advantages from the standpoint

of public administration.

In recent years, some academics have thrown doubt on the merits

of political neutrality of administrators in developing societies. They

have argued that unless administrators are intellectually and emotion-

ally. eommitted to the development policies and programmes of a

political party in power, they cannot implement them faithfully and

successfully. So they say, neutralig of 4a administrator towards politi_cal parties is an impediment and an anachronism from the days tf thelaissez faire state. There are fallacies i,i, this argument.

216

First, neutrality to political parties is not the sarne as neutrality topolicies and programmes. The latter to be formulated and ex-ecuted with professional skill on considerations and not with

Take for example the In-emotional bias on partisantegrated Rural Development (IRDP). Once the broadpolicy of alleviation through approach is decided by thepolitical masters, the details have to be up so as to help the poor,irrespective of their political affiliations, If the arlmidshator is notpolitically neutral, he will favour th0 candidates of one party inpreference to those of another. This is not desirable in a denocracv.Even at the stage of formulation of thb policy, political neutrality lsessential as the party in power nust know the alternatives and thepitfalls, if any, in the pursuit of a particular course, irrespective ofwhether it forms part of the party's political or election manifesto. Irecall &at a chief secretary used to say that his chief minister alwaysmistook him as indulging in digging the pits when he was actuallypointing out the likely pitfalls. This is what happens when the chiefminister believes the fulminations of academics against politicalneutrality.Afte r all, the pits are there and have to be avoided; blindnessto them as a result of €motional bias will only lead to a sure fall.

Second, in a democracy where parties in power are likely to changefrom time to time, administration will be thrown out of eear, if withevery change, administrators are replaced on a large ,*1". Tir"

"on-fusion is compounded if the practice is extended to cover the differentfactions in the political parties. The admlnistrators should do their bestto avoid being classified as 'our men' a4d .their men'. I have narratedin an earlier chapter how in several instdnces political neutrality stoodme in good stead, although interested parties tried to cause embarrass-ment,

Another golden rule of conduct is to distribute favours or develop-ment activities evenly among the constituencies of rival partymen. Thesame applies to legal action in mattets such as anti-hoarding taxevasion, and other economic offences, The idea is to demonstrate one's

217Administrative Ethics

impartiality and even-handedness and this must be done with care and

diiberation. I have found this to be both rewarding and useful against

motivated attacks by one political group or another'

The fourth principle of anonymity is important because in a par-

liamentary democracn it is the ministers or political leaders who take

the credit for the achievements and the blame for the failures' If the

administrator tries to hog the limelight, he runs the risk of inviting

brickbats and worse for the failures. At the same time, he will an'

tagonise his political boss who is keen on gaining publicity,for the good

thlgs that have happened. The tendency in public administration and

poliiics is to cut off the tallest poppy in the field lest it should monop-

ltse the attention of those that matter. I knew a minister who always

complained that his secretary would talk all the time in meetings and

wouid not let him have his say. Eventually he found it necessary, for

reasons of self- preservation, to get the secretary replaced, although

the latter was known to be knowledgeable. Garrulousness and upstag-

ing the boss are not ethical for an administrator. Let me also add, on

the basis of my experience, that in the long run, one is not cheated out

of recognition by one's deliberate anonymity, as good deeds circulate

by word of mouth in the circles that matter.

As to the fifth principle, I would urge the administrator to remem-

ber that modern public administration requires the coexistence of

several disciplines and that the desired results will flow only if they are

coordinated at all stages. Inevitably, somebody has to perform this

function of coordination' In the Indian system the generalist is

entrusted with it. Sometimes, the specialists in the respective dis-

ciplines who are brought into the network of coordination resent the

atiitude, style and authority displayed by the generalist coordinator'

All generalist administrators must learn not to display such an attitude,

or bitter still, to nip it in the bud and to harness every discipline to the

fulfilment of the given task. The essential elements of this learning

process are:

(a) Recognition of each specialist's role and the superiority of his' '

knowiedge over his own in matters concerning his discipline; a

certain- degree of humility is quite in order.

218 Between ICS and IAS

(b) Identification of the crucial points contact or interface betweenone discipline and another or one specialist and another.

(c) Acquisition of sufficient on the different disciplines foron (a) & (b).arriving at satisfactory

I have recorded earlier that at th{ very begrnning of my career,Sivaraman told me that knowledge wa! power, *a tnut tt" tiappingsof one's office were not to be mistalen as the source of powe..'tpractised this dictum as faithfully as I cquld. I have proved thafacquisi_tion of new knowledge as one goes up ihe official ladder is o"""..uryand possible and well within one's cqpability. Administrators mustknow and observe in practice that real power lies in knowledge and notin the formal authority attached to his c{rair. One must also e-nsure thatknowledge and power do not make onet haughty and insensitive to theself-respect of the specialists with whotit one has to interact.

. The sixth principle of administrative ethics enjoins one to adoptthe correct attitude to the public, to be Nccessible to them. to listen totheir grievances, to ascertain the facts {nd to do one's best in solvinstheir problems.

Satisfactory performance of these duties depends on the soundmanagement of one's time and the deliberate cultivation of patience.The administrators must realise that the power and authority vested inthem are meant to enable them to poiform their duties as publicservants faithfully and efficiently and not to practise self- aggrandise-ment or self-glorification. At the same time, I must also caution againstthe distortion of this concept of a public servant. A friend who wascommissioner, information and public relations in a state governmentwas taken to task by the chief minister for not reporting to him the gistof the conversation the former had with a member of the oppositionparty on the telephone. The commissioher replied that the conversa-tion took place on the initiative of the Other party, that he only gavesome information in answer to a query and that he did not consider itimportant enough to report this fact to the CM. When he did not findthe CJvI satisfied, he suggested that if GM had no confidence in him,he might transfer him to some othqr popt. Thereupon, the CM askedwhy IAS officers asked to be tiansferrod from one post to another,although they remained his servants, wlatever the post. The commis-

219Administrative Ethics

sioner replied that he was not his personal serv,ant but a public servant

and the transfer would avoid daily contacts or frequent confrontations

in view of distrust and suspicion. atthough the conversation ended in

laughter and on a conciliitory note, the 9!fice1-was transferred soon

uftJr. Tlti. incident reveals that the CM, himself a public servant and

first in order of precedence, thought of his commissioner as his own

servant. This fallacy, I must add, is not the monopoly of ministers'

Officers too are oftln guilty of it, as we know from the complaints of

their subordinates. Administrators must believe that their subor-

dinates are also public servants like themselves and behave according-

ly.

P.R. Dubashi. IAS who retired as director, Indian Institute of

Public Administration has drawn attention in a recent article in the

Indian Express to the reported statement of a former central minister

in charge ofpersonnel that while appointing secretaries to government:

what hi looked for was "not genius or brilliance but the qualities of a

domestic servant, viz.,loyalty." He has also referred to the endorsement

of this doctrine of domestic servant by a judge of the Supreme Court,

Justice M.P. Thakkar, while disposing of the appeal of government

against the order of the Central Administrative Tribunal in the case of

J.C.Jaitley, IAS who filed a case against his supersession by his juniors

to secretiryship through promotion' The learned judge said: "If I want

to appoint a cook, I would appoint any one whom I like' The same

appl-iis to government appointing anybody as secretary'n With all

r"rpe"t to the Supreme Court, I have no hesitation in saying that this

doct.ine is not only misconceived but pernicious' As Dubashi points

out, it obliterates the distinction between public and private ad-

ministration and converts service into servility' Everyone must expose

its dangerous implications, and find a way to move the Supreme Court

to revise its obiter dicta.

As a public servant, an administrator must render service to the

public without any extra or unauthorised payment. Such paymonts are

referred to as speed money, gteasing the palm, or more simply as a

corrupt practici. It i. "o.rnonly

believed that more and more ad-

ministrators have now come to indulge in such practices' Those that

are caught justify their behaviour on the grounds that they are not the

only ones to receive such paytnents, that they are part of an ubiquitous

220 Two Admini$ratbn : Interaction Between ICS and L4S

Y:':f:li:i t:.4:l"tuT'* are in4dequate in view or the sowinsinflation and that those that make thE payments d;r" ;;;jy"f_;:higher quatity of services rendered. q,iitJ .f"..fy tfrJffieas do ootbear scrutiny and such conduct is unethical. fr,iy-"for"'""a oi i"Aobservation of corrupt colleagues hai h6ugh1 -" to it

" following

conclusions:

(a) The character of some is basicall! or ab initio deficient on thispont.

(b) Thel tend to view their positions basically as opportunities forearning the extra amounti and not for rendl.irgj;Uli"-;"" o.performing a given set of duties as public serva_its.

(c) Some of them have fallen into thc traps laid for them by thecorruptrng force$ in society early i{ their career, by mistake or byaccident and are unable to get out,

(d) They yield to pressures of family, who exhort them to practice whatSivaraman has called the upai cultlrre in his reminislnces.

Upari is the word commonly used to describe the earnings overand above the salary. There is very little for me to sayto those who havethis unfortunate defect in their charactdr. But to otlers. I recommendthat they decide on the course of their behaviour early in their careersand take conscious steps to avoid temptations andpitfils. The first fewyears of one's career sets the tone and lays the- foundation for thereputation of being incorruptible. Generally, it all starts with smallthings, innocuous looking but loud in the signals they send. Diwali andother social occasions are often selected for getting the administratorinto the pit. So, he needs to be vigilant and no amount of care will betoo much to build a clean reputation in the early years of one,s career.

It is sometimes asked whether it is ethical for a civil servant tocontinue in a particular post or in the service when he is convinced thatthe decision he is asked to implement is wong. Should he resign insuch circumstances? When such a question *^ pot to Sir WilliamArmstrong head of the British civil service, who was deeplv involvedin the Suez crisis against his betterjudgement, he replied: "i huu" n"u".come up against a case where I felt so strongly that I even got withinstriking distance ofresigning." The farthqst hs went was to wear a black

221Administrative Ethics

tie, as a token ofhis unhappiness but soon he abandoned it as a'rather

iuvenile qesture., civil servants in lesser positions have the option of

H; ;;;.f.1 *l"o ttt"y ut" fuced with an acute moral dilemma in

*ii"n ?tt"it "oosci"nces

do not permit them to carry olt the decisions

handed out to them. But at the iop level it will, indeed, be ethical if in

sJrare situations, theyresign' Itis all a question of the extent to which

one's conscience disapprovis of the decision and one's ability to

i.pf".*t it is thereby eroded' Ordinarily, however' administrative

"if,1", do". not ,equire a civil servant to quit so long as his.unhappiness

witl, a given decision does not impair his capacity to implement it in a

orofessional and rational manner'

2

Administrative Methods

While putting the ethical principles into practice, the ad-

ministrator must have a healthy respect for facts. Broadly speaking,

facts are of two kinds: hard physical facts that can be quantified and

soft, psychological facts that have to be caiefully assessed, such as the

attitudes and aspirations of the people around. Sometimes, even thephysical facts cannot be grasped correctly excepl through elaborate

surveys and sophisticated techniques like random sampling, regression

nlnlysis, etc. As regards psychological facts, it is difficult to claim

infallibility or accuracy. One has often to manage with informed gues-

ses.

In the ordinary course, facts come to the administrator in the formofpetitions and other correspondence. [n'officialese, they are referred

to as receipts. Prompt and proper disposal of receipts is one of the

ingredients of responsible and responsive administration. To watch

their progress through the official channels, to ensure the application

of appropriate law, and to facilitate communication of the decision to

the persons concerned are obviously the responsibility of the ad-

ministrator. There are detailed instructions on these matters in officemanuals and are often referred to as office routine, despite theirimportance for the image of the office. Of late, these matters along withsome others of similar nature have been given the title, Organisationand Methods. Included in them are the procedures for reportingweekly disposals, weekly review, monthly review of pending receipts,

224 Two Adminhtrators :ilnteraction Between ICS and IAS

special review of long-pending cases, maintenance of records, destruc_tion of old records, etc. It is unfortuiate that some adninistrators oftoday tend to misunderstand the t$rm routine, and fait to devotesufficient attention to these proced1res on the ground that the oldmanuals are out of date and are not suitable for-modern conditions.The correct action is to revise the manuals, not to ignore them.

I recall that Sivaraman as chief secretary and developmenr com_missioner, Orissa utilised the puja holidays of 1961 to prepare abrochure on the improvement of administration and circulated it to allsecretaries to government, heads of dgpartments, collectors and otherdistrict-level ofhcers for discussion at a special two-day meeting heldin November of that year. The brochure began by stating thai "Theadministration in Orissa in all departtnents and at all levels has to bestreamlined if we are to take up the vast programmes now con-templated for the Third Five Year Plan." It went on to say:

'Our Administration is based on the 'written word' and the rule oflaw. This requires that all action of Government has to be translatedinto writing and records have to be maintained. It means that theadministrative structure must unders(and the law and the implemen-tation thereof. The first requires a mpticulous observance of routineand preservation of records. The second requires a basic training inthe understanding of law and a structure to which the average ad-ministrator can go in cases of special difficulty."

As for the routine, it was only a tneans to an end, and should berevised to its minimum and thereafter followed meticulously. Theminimum should be such that "at every level people may have time tothink and act." An annual check about the sufficiency of the rules andmanuals and a revision on the basis of the year's experiences weresuggested. Sivaraman and I followed up these conclusions as best aswe could.

That Sivaraman did not give up the stress on the proper main-tenance of routine, despite his preocoupations, was evident from thedrive he undertook as cabinet secretafy. He has recorded in his bookBitter Sweet how his fellow secretaries reacted cynically when he beganto review the state ofpreservation of office records in different depart-

Adninistrative M ethods225

ments and the methirds.of retrieval of information' Some of them

,""-"i to hav" felt that such work was not worthy of their attention'

S-iuaru*ui,fto*"*, surprised some of them through 'a simple review

;i,f;pi"..ntation oi cabinet decisions taken during the previous

tlreeyeu.s, witn the discovery ofhow their {9qarfm.

ents were not only

negligent in implementation but also unmindful of the serious attempts

of"veied interests to thwart the government's intentions through the

manipulation of office routine. The deliberate practioe of opening part

files to erase the memory of preceding events or decisions was found

to have been resorted to in certain important matters by some interests

to procure favourable decisions. It is good to remember that the

administrator, no matter how senior or how deeply engrossed in mat-

ters of policy, must maintain adequate routine in his officein regard to

. the preparation and preservation of records. This is particularly true

of an IaS officer, who is called upon to handle different departments

for short periods during his career. He more than any one, should be

conscious of the importance of office memory, its proper preservation

and its quick retrieval. I can vouch from my experience, particularly in

the shipping and transport ministry, how very helpful was the routine

.ny pr"di""..ut Pimputkar had established and bequeathed to me' Idid everything possible to maintain and improve it, keeping the needs

of .y .u"""sso. in view. May the present-day administrator remember

that Le is but a part of a chain and earn the gratitude of him that will

follow!

In the maintenance of routine and the managepent of the'written

word' (otherwise known as the file) it is necessary to take note ofthe

latest innovations of office technology and adapt them suitably to

government offices. Some of the new technologies like micro- filming,

photocopyittg and computerising are a great help in saving scarce

ipace, speeding up retrieval and sharing information with all con-

cirned. Their introduction is likely to be met with resistance by copy

writers and a host of other low-skilled functionaries as they are likely

to lose their jobs. So the matter has to be handled with tact, and by

simultaneously providing retraining programmes for those who will be

made redundant.

I shall illustrate the importance of technology in this area by a true

story from my experience. When I attbnded Columbia University's

management course in 1966, I learnt that the owner ofa chain of smallrestaurants found that he was frequentfy losing his chefs due to quarrelsbetween them anil the waitresses. He bngagei a .anagernent consultant to study the problem and advisd hi;. His adviJe was that the

.p"t::t':: :f :,"i'resses takingthe customers'orders orally and shouring

rnem dowtr the chute to the chefs below in the kitchen be discontinued.Instead, they should wite down the drders, attach them to a spindleand pass it down to the chefs. The consultant,s finding was that theannoyance caused by the shouting dowtr ofthe orders ani the resultantloliusion of serving the wong disheb to customers was the reasonbehind the rapid turnover of chefs. pea]ce and harmony returned to therestaurants with the technology of the spindle, the management casestudy concludes. This story prompted tne to enquire into ihe delays inobtaining no-encumbrance certificates ofland mortgage loans given bythe Cooperative Land Development Banks. As .""i.ti.y in charge oicooperation in the Orissa government, I was always under pressure ro

226 Two Administrators : Interaction Between ICS and IAS

sanction additional posts of cooperative inspectors for searching therecotds of the sub-registrar's offices and issuing the certficates. Butreco(rs oI the sub-regtstrar's offices and issuing the certificates. Butthere wAsdqlerceptible improvement even after increasing the num_ber of inspectoi$-qlthey verified frorn the same set of records. Thestory of the spindle midese-think that a better technology for prepar-ing, storing and indexing of the iecords in rhe registraii;ilince woutahave to be found. Accordingly, I tried, as chief s.ecretary, Orissa in 1.973

ber of inspect

to introduce a new system, in a few registration offices as a pilotmeasure. As I had to leave Orissa a fewmonths later, I could not followit.up. From enquiries through friends, I understood that the newsystemdid produce beneficial results but no attempt was made to improve itor extend it due to general apathy to innovations of any kind. Thishappened despite my attempts to discuss thoroughly the need andimplications of the experiment and to involve all concerned in it.

I would include in office technolog5i the layout ofthe office. l,ayoutshould facilitate the flow of paper and dreate confidence in the publicthat seek information, service or redre$s. l,aknani, a young officer ofthe Maharashtra cadre of IAS, has derionstrated in the early eightieshow the district collector's office can become more efficient and creategreater credibility in the public though a rearrangement of different

227Administative Methods

sections, or in other words, an improved layout' This needs to be

pursued and extended throughout the country'

Theadministratorisalsorequiredtogatherfactsonhisown'verifand check them with reference to collateral and contrary facts, analyse

them, draw appropriate conclusions for action and finally act upon

ii".'u""dtani to his position and power' We shall see a little later

how this procJss fnks-him to the making of state policies' For the

present, ishall continue with th€ collection and sorting of facts' The

p.o""du.". commonly adopted for these purposes are inspection'

iupervision and field visits. I was fortunate in having good oppor-

tunities at the beginning ofmy career, for attending Sivaraman's fabled

inspections and ior accompanying him during his tours in the district'

Many like me have concluded that such opportunities were indeed an

education in public administration. Sivaraman's inspection notes and

tour notes weie veritable mines of facts, information and suggestions'

We used to keep them safely with us and go through them frequently

and meticulously for guidance and action. Such inspections and tour

notes have of lite fallen into disuse, partly because the senior ad-

ministrator does not find the time and partly because the juniors are

more interested in other urgent or spectacular matters' When I found

Sivaraman continuing to write his tour notes as elaboratedly and

carefully as before even as agriculture secretary, cabinet secretary and

membei, Planning Commission, undaunted by the changes around

him, I asked him why he did not discontinue this practice' He replied

almost apologetically that old habits die hard. He however added, with

a glint in his iye, that on one ooccasion he was delighted to hear from

th-e young collector Vidisha (MP), during his tour as chairman' Nation-

al iommission on Development of Backward Areas (NCOBA) after

retiremenf from the Planning Commission, how the latter came across

one of his old tour notes as agriculture secretary and was trying to

implement the suggestions made therein. Such indeed is the value of a

good and detailed tour note of a farsighted administrator who had rich

Lsights into Indian agriculture. Tour notes apart, Sivaraman, whose

strolngest suit was knowledge of field conditions, ha1 demonstrated

time a'nd again how serious pitfalls could be avoided in framing policies

for a courriry as diverse as ours and monitoring their implementation'

No trouble is therefore too much for an administrator in his effort to

228

Inoy 11. field idtially and to keep in touch continuousty with rhe

inevitable changes.

Of late, the a.tministrator is ber4g exhorted to cut down paperwork, make greatet use of the telephone and carry on his buiinessthrough the spoken rather than the riritten word. Tiis advice is bornofa healthy desire to reduce delays and speed up government business.Atthe same time, unscrupulous colleagues and bosseg political as wellas in the bureaucracy, have begun to t4ke advantage of this new_foundpreference for the spoken word, wh[ch has caused the honest ad-ministrator serious embarrassment. I have narrated the story ofP.R.Nayak of the ICS who took quick decisions bonafide but withoutalways recording reasons and was subJected to disciplinary action forsome of them on the very last day of his service on the instigation ofsome aggrieved persons. My own experience in regard to unsignedtyped slips from PM's secretariat during my tenure as secretary ship-ping and transport during the emergeicy and the bonafide gold salesas deputy governor, RBI in anticipatiou offormalorders ofgovernmentduring the Janata period is proof enorlgh of the dangers of relying onanything but the written word. The recent witch-hunts of new govern-ments against some officers for their acts during the preceedinggovernments underscore the wisdom qf recording the reasons for allimportant actions in writing. I used to assert that honest officers mustmake their decisions transparent by recording reasons, for thedishonest ones always take great care to cover their tracks. The ad-ministrator should not therefore fall itto the trap laid by the curenttirade against the written word in the riame of reduction of red tape.

Meetings are an important example of the method of the spokenword and they occupy a significant part of an administrator's time.Nobody can deny the utility of this method, although frequent resortto it without adequate preparation, fbrethought, or follow-up canmake it counter-productive, wasteful and vexatious. Meetings may.serve to collect facts from the participants, facilitate airing of diverseviews or letting off steam, evolve consenbus, develop a coordinated planof action, arrive at a decision, or to gengrally inform or exhort. He whocalls a meeting must be clear about its purpose, must set out the issuesfor discussion as precisely as possible apd inform all concerned well inadvance, so that they may come prepared. Ifthe purpose is fact-finding,

229Administrative M ethods

review of pre- existing facts or coordination of different 4gencies' it is

"...rii"iit" " profoina is circulated in advance' I have recorded how

;;;;ltt;d speed of reviews' undertaken by me and my team of

offi#, io th" sixties, of th" community development programme and

;;;;y"d;j instituiions improved tremendously after. following the

it"*tii"a p"rofo.-", by my colleague K' Ramamurti although we'could not etminate completely the tendency of false reporting' It is

inportant that the chai'man gives an opportunity to every participant

to 'have

his say, while intervening to maintain order and relevance and

"od"uuoors to summarise th" **"** or conclusions fairly' even if

they are cont.ury to his own thinking or wishes' He must be careful to

;iect fris own iieas at a surtable juncture, not at the beglnning and

aipear as if he is reconciling the diverse views thcreby' On no accouat

siould he give the impression sf lamming his own vipws down the

throats of lhe participants without giving due consideration to their

sensibilities. Participants too should on their part, remember that the

meeting is a combined effort, however disageable others' views are

and act"with restraint and dignity' I can confidently say that I practised

these principles as faithfully as I could. Several of my friendships were

formed at these official meslingc, as for fu$tanc€ during the meetings

of the fertiliser industry. review committee of 1967 composed of Indian

and American experts, with myself as the self-appointed convenor and

the sessions of thi shipping development fund committee during 197+

n.In 1983, I was invited.to speak to the commissioners, income tax

andothermembersofthelndianRevenueServiceintheiltfainingcollege at Nagpur about meetings. During the disc-ussions after the

lectuie, I was struck by the number of questions put about the hierachi-

cal levels of participation in inter- ministerial srsstings such as what

should be the level oi the reprqsentative of the department, how should

one behave at rmeeting chaiied by an officer ofjunior rank and how

should the chairman react to a participant of a higher rank' I advised

them to find their own alswers, concentrate on the functional aspects

of participation, the roles of their departments and the briefs given to

the- ratile, than the hierarchical aspect. I said that it would be

certainly wrong to withdraw from a meeting when the chairman is

found to be ofa lower rank or to deny the participant a say on the

230 Two Adtninistraon ii{nteraction Between ICS and IAS

ground of his Lower ranft. These poifts as well as those made in theqrevigus paragraph would be oboid* to -o* ,"J"r, but I havethought it worthwhile to record ther4 here i" ni"..u oi ai; reactions ofsome senior ofiicers at the Nagpur lfcture meeting. Readers will no{oubt

rgcall how many meetings proVe to be infruct"uous as a result ofthe neglect of the above principlei.

The administrator and his metho{s are sometimes adversely com_pared with the manager and his tools of management. I have heard itsaid that the IAS officer should Sease to be a mere administrator andrise to be a manager. This statement ls perhaps meant to convey thatadministration is no longer confined tO law and order as in the colonialdays and the new tasks like developruent, welfare, state tradins andeconomic matters need new skills simllar to those of a nanager L theprivate sector industry. Thus pur, there is surely an element of truth inthis assertion. But it is not truer$ say that the tools of managementevolved in industry can be applied ldck, stock and barrel to publicadministration. Industrial manageme4t is geared to the single goal ofmaximising profits or in the words of ptof Galbraith to avoiding losses,while public administration has multiple goals, some of which cannotbe quantified . The concept of sodial responsibility in industrialmanagement goals is new and is often treated as a cost and managedxqcoldingly, as in the case of compliance with ecological regulations.So, the current need is for adapting the lessons of behavioural researchand technological ianovations of industrial management suitably forpublic adminislration. The debate of the late sixties on administrativereforms brousht this out prominently and governmelt took severalsteps to orient the administrators and train them in the new conceptsof management. A new journal, Madagement in Government, wasstarted.

My own exposure to management methods startsd with peterDructer's book, The Practice of Management, which I bought on oneof my visits to Delhi in the sixties. My fust impression on reading thebook was that some at least of the mgthods described therein werebeing practised by me and Sivaramad without the help of the newjargon. Of course, there were some methods and some caie stories thatdid not appear relevant to our situatioq. The word manager appearedto have a new attraction, compared to administrator. But when I

Administrative Metho ds 23r

attended the Columbia University course in nanagement in 1966, I was

pleasantly surprised to see a book on case studies in human relations

ioanagemeot in business by LP.Glover and R.M'Hover of Harvard

University, with the 6tle,,4d,ministrator. Indeed their institution was

called the Graduate School of Business Administration' While the

book dealt mainly with cases collected from business organisations, it

had excerpts from writings about non-business grganisations, such as

the military, in the fields of human rolations, adninistration, organisa-

tional behaviour and the like. The following extract from the Introduc-

tion written from the standpoint of the business administrator is

relevant for the public administrator also:

"A fund offactual knowledge, mastery of a technique, and analyti-

cal ability, while useful or even indispensable, are not in our opinion

the attributes which, per se, distinguish the administrator from all

others in an organisation. Others may have in their minds a greatet

store of facts. Others may outshine the administrator in command of

technical knowledge and ia practice of technical skills' Others may

have greater powers of logical complex, and concentrated thought.

The qualities which, to our way of thinking, distinguish the ad-

ministrator are.his ability to think and act responsibly, to perceive and

respond to environmental realities, to work cooperatively with others,

and to work effectively and with satisfaction within the group and

generally to provide leadership rn getting the required work done".

The authors go on to stress that the crucial cornponents of the

'administrative frame of mind are 'attitude, judgement and under-

standing' and that those can be acquired mainly from experience and

from the disciplined study and ordering of experience' It is in this

context that they recommend case study method which exposes the

student to a variety of genuine experiences. This book" which sets out

the circumstances in which two administrators lived and worked is

offered in the hope that their experiences will throw some light on

matters that concern all administrators.

3

Administrative Structures

The problem of structure is inherent to public administration, as

the needs and aspirations of the public are many and diverse. Conse-

quently, the services required to cater to them have to be well differen-

tiated on the basis oftechniques and closely coordinated to achieve the

desired results. Different administrative structures have to be horizon-

tally linked and vertically integrated for the purpose of coordination,

while providing for a degree of autonomy at each level. Further,

administative structures have to be adjusted to changes in circumstan-

ces, keeping in view the availability of personnel. Sivaraman's and my

experiences in these matters and the lessons to be drawn are described

in'the following paragraphs.

. Orissa was faced with a severe shortage of experienced senior

administrators in the wake of Independence. The joint Bihar and

Orissa cadre of ICS provided six officers only, half of whom were in

the commissioner's rank, the other half being in the rank of collectors.

One was soon elevated as High Court judge and another was trans-

ferred to Bihar,thus reducing the number to four. Six IAS officers ofthe war service batch were allotted in 1947-48. They had no knowledge

of state administration, although they had some experience in defence

and accounts. As they had to be trained in criminal law, revenue law

and other intricacies of civil administration, they could not be ap-

pointed to regular posts. January,L948 saw the doubling of the ad-

ministrative area of the state and the manifold increase in the

234 Two Administraton : trnteraction Between ICS o,

complexities of administratioq as a result of the merger of 23 princelystates with Orissa. Another state, Mainrrbhanj, merged on January i1949. The sudden demand for experipnced administrative personnelwas met by promoting the members olthe state administrative service.When I reported for duty in Decembef D4J all the secretariat depart_ments except two were headed by fromoted officers. The finance:department was directly under the chiof secretary who was assisted bya promoted departmental officer in the rank of additional secretary.Finance was treated as a preserve of the departmental experts. It wasnot till four or five years later that officers with wider experience ofstate affairs could be inducted into it, not tospeak of becoming its head.It needed a financial crisis to shake the government out of its com_placency on the exaggerated claims of the entrenched personnel. InMay 1951, RBI refused to honour the state government cheques as theaccount was overdrawn as a result of the heavy payments by thellirakud project authorities and delay in the receipt ofthe countervail-ing assistance from the Centre, This took place when V.p.Menon wasacting as governor in the leave vacancy of Asaf Ali. Menon, of states,merger fame, was a man not to be sdtisfied with half measures. Hepressed for radical changes in the adnrlnistrative structures. Under hisguidance, the Nabakrishna Chaudhury ministry decided that thefinance department should be strengthened by new personnel withwider experience and special training and that the chiefsecretary whowas already in overall charge should take greater interest in the depart-ment. Dr. S.K. Rau of the first IAS batch was posted to the financedepartment and sent to New Delhi for trai.'ing in Ways and Means.Similarly, the three ICS officers were irsked to handle larger respon-sibilities, by reorganising the board of revenue. At that time, thethirteen districts of the state were diviiled between the revenue com-missioner, Orissa and the commissioner, northern division for thepurpose of supervision of the district administration and both officerswere exercising the powers of board of revenue, the highest appellatcauthority in revenue matters. Besides, there were two posts of commis-sioners for looking after excise and the Grow More Food campaign.

The new board of revenue consisted of a president and twomembers, corresponding with the threo ICS offrcers available. All thefunctions and responsibilities required to be discharged by the com-

2i5Adrninistrativ e Sntcfi$es

missioner and the board of revenue under various laws, including the

administrationoftheorissaStatesorderlgzl8andtheadministrationof the Mayurbhanj State Order l'949, were divided between them'

While all ih" thr". sat together as the full board for disposing of

important matters, eacb member had the authority to dispose of inde-

peidently matters entrusted to him under the order of distribution of

Lusiness made by the board with the approval of government' Under

the Act, the state government had the power "to assign by notification

to the board such other duties and functions as they may deem fit'n This

provision was used to make the president of the board secretary to

government in the revenue department and the other two members

iecretaries in some other departments, in addition to their territorialjurisdictions which were the same as before. The underlying idea was

to make the best use of the available administrative talent. The senior-

most ICS officer, N. Senapati became president, board ofrevenue, and

secretary, revenue department, while B. Mukherji the juniormost be-

came chicf secretary and decretdry finance department. Sivaraman,

the second member, board of revenue, was designatdd commissioner,

northern division, comprising six districts with headquarters at Sam-

balpur, as well as secretary, departments of mines and geology and

gram panchayats. V. Ramanathan, the third member' board ofrevenue

was designated commissioner, southern division comprising seven

districts, with headquarters at Cuttack as well as secretary, department

of excise and registration. In addition, Sivaraman was put in charge of

commercial taxes, and of the Hirakud land organisation, more or less

like a head of department. The first - mentioned subject fell within the

jurisdiction of the finance department and the second within that ofthe river valley development department. Both the secretariat depart-

ments were then headed by comparatively junior offrcerc. Pinu facie,this was quite a hotch-potch and contrary to known principles of

administrative organisation. It is indeed a wonder that the system

worked. We know that Sivaraman not only discharged these multipleduties to the satisfaction of the chief minister for five long years but

also succeeded in upgrading and stabilising the administrative system

in the northern division consisting largely ofthe ex-state areas, besides

authorinq some innovative laws for the entire state of Orissa.

In L957, by an amending Act, membership of the board ofrevenue was reduced to one, the other two members asrevenue divisional commissioners divesting all three of them ofRevenue Divisional Commis-make the cammissislsl "1[sthe general administration of

their secretariat functions. The Ori

was to include "execu-

ministration of local bodies andspecifi cally entrusted.',

law and order ad-other functions as may be

191ers Act, 1957 was promulgatedChief Executive authority in chargethe Division.* The term ,general

artive functions relating to revenue

- According to the paper circulated at the symposium on The Oiigin

and Development of Board of Revenuerand Divislonal commissioneis,held in Cuttack in February 1961 under the auspices of the Orissaregional branch of the Indian Instituto of public idministration. thereasons for the changes were as follows: "Great stress was given on thespeedy execution of developmental r,Vorks under the pians and ofdistrict administration which were not upto the mark as ihe Membersof the Board of Revenue with their mullifirious activities could not findtime to devote to theG It was felt that tlrere should be.an intermediatealthority between the Board of Revenue and rhe Diitrict Officers, likethe Divisional Commissidners. In Bengal and Bihar, there is such anadministrative sefup with an interntediate authoritv between theBoard of Revenue and the Collectors. They are in charge of immediate.control of district administration and developmental works. We haveinherited the traditions ofthese two parent provinces and this was theconsideration which weighed to reducq the 3-Member Board into oneby making further administrative changes by the creation of the postsof three Revenue Divisional Commissioners with administrativedivisions. It was felt that the 3-Member Board had no time to look totheir primary responsibilities, viz., the administration of the districtsand development work. The secretarial powers had to be taken awayfrom them. It was also felt that the number 3 is a bad number whichmeant that several peoples, responsibility is nobody's responsibility."

I would add, without contradicting the above statement, that theIAS officers cadre had since grown and gathered enough experienceto handle the matters hitherto concentrated in the hands of the fewofficers of the ICS. Everyone hadbeforetrim the example of Sivaraman,

Administrative Stntcfi$es 2i7

whostrodethestatelikeacolossusdespitebeinginSambalpurawayfrom the state caPital'

Another significant change in the administrative- structure was

m"*fri"U""t"ty the Nation"al Erension Service-of.1952 and the

a;il;;y';;;iopment Programme that followed' The former was

i""tl'l" lp""a up agric*ull development in general and food

;rJ;;;i;particulaiwhile the latter aimedat an all-round develop-

il;;;;t";al people' Under the central government's advice and

minister S.K. Dey's pressure, the post of development commissioner

was created for the purpose of eniuring coordination of all develop-

rn"r, a"p"tr."ot. in tn" ntla' Orissa chose to combine it with the post

of- "hi"f^.e"."tury

and accordingly, the juniormost ICS officer' B'

Mukherji came to have vast po*"t',-to. the,anl:y.1]rT of his senior

;;i;;;;"r. Earlier they had enjoyed full authority to plan and imple-

ment rural development works lii<e minor irrigation' rural roads' etc''

no*ior.itg purt of the C.D' Programme' Sivaraman as commissioner'

""t,ft".t A*tf"n had embarkeJ oo a -assive programms of these

;;tk ".

part of his plan for upgrading and stabilising. the administra-

iiot of tfti "*-.,ate

aieas. Fortunately, before the administrative struc-

iur. "outa

come under serious strain, he left the division in 1955 to

;;;; president, board of revenue in the leave vacancy of Senapati

ura-f*ipto""eded oo eight months'leave.' only to return in 1956 as

;;i.";t;"ty-cum- deveiop*ent commissioner' As noted earlier' he

"ottitu"A i" iftis polition till May 1965, except for a short interval'

The combination of the two posts, I presume' was to create a

certain awe ofthis official among thl various functioraries' so that they

*orrfA ."t aside their departmental bickerings and fall in line in the

interest of coordinated implementation of the C'D' Programme' With

tfr" "pfointrn"nt

of Sivaraman to the combined post' these features

*"r" u"""rrtout"d by his forceful personality and his fabled reputation

as an indefatigable supervisor und ft"qu"ttt visitor to the field' On his

oart. Sivaraman was aware of the dangers of his tour.notes in the new

Ii,"",i... He issued a circular that his suggestions in the tour notes

tit""iJ t", be construed as final orders of government but should be

oro""s."d io ttte normal way, before implementation' This was meant

i" i"t" ""i" "f,fte

sensitivitiis of departmental structures and ministers

irr-"t u.g". not in practice, Sivaraman's word was taken as government

238 Two Administradrs : I4teraction Between ICS and L4S

order and action initiated on the tour

il.T:1#f"{Tf r,"":$ffil1"-hTff ilJ,H:llf"lf H*tpa rt i cular, bega o to "o. oruin op"ni i;T;:;#ffi ffi::H"Tt""#facto chief minister. Alt'hous

chier-i-i-r-- r^ -h Sivararlant style suited Mahatab thechief minister for a while, hJfound it,u."p,ry,o ,i. p[;;#;'"'"q rt expedrent to transfer sivaraman

Tha rrr,^ n^.r- ^r ^,.:-. rer, board gf revenue in Septemb er L959.

11.":::f :::l"r,i.r."o"tu,y_aa";;,,-o''""ii"ill,llllllllJi;

supervision for faci litatine tle coordinatio. ;i rh#;;;; ; jdevelopment departments.

supremacy.rhatthetwor"J;;:.Jf,"tfr lrlllilil,"T:,:X*'after his rriumphanr climb to power;iltff*";;'r*).Li;u *as firedwith a vision and found in Srvaraman arl atrle companion and a coor-dinator par excellence. Bv then,

"rfik;;;-;;;fr-,_1., ,,uu.u."r,fourd it necessary to share iris burd"o. ot"oo.aiouijon urr'i ,up"_irio.,with.three senior officers, additional "hl"i;;;;;;;; additionaldevelopment commissioner ana

"orn-i..ion-o, o"""ir?lij,, raj. True,this coincided with the coming of ,g" of th; fi;; "tliJr.o-rios orn""r.of warservice origin.I had held trr. i*t orJ"u"roiilJni*_,ni..ion_.just before this and was designated additional d;*b;;;* commis_sioner, white continuing to hola tne cr,arte oi."*o'"i!,]i*ri"g r"acoordination department. All the necessary po*"., *"r"'dalegated to

Ti"**-",::f:li:':.1:,.p*"nayati raj was urro pru""a under my

I have narrated in an earlier chaptor how I attempted to bring:::u,:coo:diation through rhe theory of thr".il;1;1, rhe dicrumrnar Knowredge ls power and by constant touring in the field, like mymentor Sivaraman. I have also recorded hdwl had'to face the inevitableconsequences when any officer attempts to coordinate the work ofothers too enthusiastically. It is no wondet tt ut rny .u""".*rs thoughtthat discretion was the better part of valour and restraineJtheir efforts,so as not to offend the sensitivities of ministers and departmentalheads. I have learnt how one additional d"""bp;;;; immissionerafter me, who tried to revive the old method.

"lJ"_rf"," us in the:1tl!:t was held guitty of undue inrerference i" if,"

"ii"f. of orheroepartments and promptly transferred. So the problem of coordina_tioo_and the question of the appropriate administrative structure stilrawait sarisfacrory answers, accepta-ble ro

"[. L ;y o;l;iln, oon" wiu

239Admini sft ative S tnt ctures

be found till the departments to be coordinated and their ministers

;;;;; lve with a certain loss of autonomy in thelarger interest; the

;;il;;;;;. to u"t *itn tuct; and above all' the chief minister is

.t.oog ""ough ^nd

willing to stand by the chosen coordinator'

Coordination, I must stress, must notbe confused with integration'

Under the latter, the sub-progammes and agencies in-charge have no

."purur" existence. They are-organically linked like. different parts of

iii lu-u" body. Part of the trouble in administration is traceable to

coordinators wiihing to impose the rigours ofintegration in a situation

"."ai"g only coordi-nation, and the agencies concerned resisting the

.coordiiatoiin the fear that it is but a short step to losing their separate

existe.tce and importance. So there should be a clear understanding of

the nature and lngredients of effective coordination' The first in-

gredient is a well- coordinated programme or well-adjusted system' to

ise the management jargon. The second is an operational frame with

suitable tools such as job charts, and list of duties that each agency or

part ofthe system is required to observe. Training, supervision' and the

iwin motivaiional aids of reward and punishment are also parts of the

frame. The third is a suitable forum for interaction and demonstration

of the relative roles and contributions towards the common goal' The

fourth is the presiding individual or coordinator with the necessary

credibility among the different agencies. It is important to organise

training ior all those involved in the system so as to bring about

attitudinal changes and the realisation that modern problems cannot

be tackled on the philosophy of the lonely furrow

I now pass on to panchayati raj institutions as an administrative

structure. In Orissa, statutory gram panchayats were established in the

early fifties in accordance with an Act drafted by Sivaraman under the

grriiuoc" of Nabababu the chief minister and socialist dreamer' This

ivas viewed as the fulfillment of the directive principle of the constitu-

tion on village panchayats. The other two tiers, panchayat samiti and

the zilla parishid came into being in the sixties, in accordance with the

recommindation of Balwant Rai Mehta Committee' This was all part

of Nehru's drive for democratic decentralisation, which generated

nationwide enthusiasm. In an earlier chapter, we have noted that by

the end of the decade the panchayati raj bodies ceased to function as

envisaged in most states, including Orissa' Current$, attempts are

240Between ICS and IAS

being made to revive them and even give them a constitutional status.My reflections assume some in this context.

In the.euphoric days after Independence, both political leadersand administrators made mar.+^_)r_^ -t . ry mstakes out ofan inadequate under-]and3.e

of yral society and the structural aspeci, of-.*-aiua.ini.tru_tion. First, it was not understood tdat the i".- uifirg" frud diversemeaning in different states and regiods. The lead"r. *Ein"l uaui.".,

1:|1 Ti:Tii:l"l *1" .*".: fyidr with the rarge teerning viuages

tribal belts could never become viiable units of administration.Sivaraman has written about the way in which ttre fhirring Commis_sion issued a policy' decision on this matter, supposedly based on aconsensus in the National Developmbnt Council, wherr, io fact. thismatter was not even discussed in thd Council,s meeting. Orissa, ofcourse, refused to folrow this decision iand stuck to sivarairan's advicein combining contiguous villages in otte gram panchayat up to a totalpopulation of 3000. There could be no uniform pattein for the entirecountry.

. Secondly, due to the general lack of a sense of history and theabsence of accurate information on the working of panchayats in thepast in different parts of the country, policy makers accepted uncriti_cally the romantic image created by Sir Charles Metcalfe ind others intheir writings, and by the evocative slogan of panch parameslrwar. Thetruth about the traditional panchayat appears tobe that it was a popularmechanism or forum for resolving intef-caste and intra-caste conflictsand petty disputes in the village. It wotked best where the villaee wasnearly homogenous, castewise. There was evidence that these Lodieswere already losing control and credibllity due to various factors such

of the Indo-Gangetic plains, insisted on .ooe dlfag?, orr" p"o"t uyut,,but the small habitats in areas like Ori$sa and Muafyu frua".n u.,a tn"

as migration, economic pressures from outside and loosening of thecaste ties. To make such a body, even through the process of e-iection,responsible for the new tasks of development was indeed a big jump inthe dark. The few successful instances gleaned from inscriptions iikeUttaramerur could not provide a viable model for general application.

Adrninistrative Strucntres 241

Thirdly, the inherent checks provided in the law werethoughtlessly

eroded for political reasons' Aithough the sarp,anch elected by the

;'";;;;il;;entatives h-ad the pow-r to take decisions as well as to

execute them, it was thought that he would refrain from arbitrary action

;;;;;;;;;il: one, thai he;ould have to fac'e the people at the end

ofhistermforre-election;andtwo,thatthepanchayat,whichwasreouired to raise resources through taxation for carrying out develop-

;;;;;;;;dd be closelv scrutinised bv the people pavrns taxes'

ii" n.u f#o. *u, nullifrei rhrough the tendency_of the political

leude.s at the state level to supersede panchayat bodies for factional

,"^on. and to postpone the periodical elections indefinitely and at

will. The second iactor disappeared as a result- of the state

go""."-"tO' u"ceptance of the plea that the village could not bear any

idditional burden Ly way of tax' Muhutub directly dissuaded even the

Jffirg p*"ttuyats irom taxing themselves and forced them to rely

;;i"ry ; the funds available under the C'D' Programrne and other

*runl fro. government. Similar damage was done at the samiti and

;;;il;"#it by abolishing land revenue on a large number of

il"iAff * ,ft" ground of their small size, thus rendering the power of

tfr" fu"n"ftuyuti iaj bodies to levy surcharges and cesses infructuous'

ii"'in.tituiion. becurn" depenient and impotent' Sivaraman writes:

'ny abolishing land revenui for a good part of the holdings and not

J.i".iitg rates to the inflation in commodity prices' the states effec-

tivlty hlst.ung the nascent repositories of decentralised power'"

One important tax the panchayat could lely was the labour tax'

While every able-bodied person could be called upon to contribute

labour for ihe develop-ent of the village, those'who could not could

cootribute cash. This was in accordance with tradition' But this method

was distorted by making the contribution of labour voluntary and

allo.wing the rich to get away without making any.contribution' The

CO. f r"ogruro*e, which insisted on local contribution' soon acquired

a reputaion of exploiting the poor landless labour' The common

p.op'rrti", which were being maintained by some kind of labour tax

ieteriorated. In some places they were encroached upon by the in-

fluential.

Fourthly, it was incorrectly assumed in the-beginning that the

pun"huyuti iaj institutions "ottld

b" kept free from party politics'

242 TwoAdrninistrators : l,hteraction Between ICS and IAS

History had belied this assumption. Hhd the truth been recognised atrhe srart, rhe wen-meaning nat-ionull"ud;; ;;i; t iJ.""uotu"a "".turoglidelines.ar the viilage, biock ana Airrii"ii""J. i'f," iotiticians at tfrestate level began to view the newly

"f""+"J."p.".""iit1u". ortl" to*".bodies as their potenrial rivals. Thi. pJ;;;il;;;;hy was the mainreason for the supersession of the bodies i"Jn" f"i"i*te postpone-ment of their elections. Even in Mahafa$,* _j-C"j"rat, which areoften cited as models of democr"ti. d";;;;;;illi".ur r"u.ur".have been introduced ro curb the influence oi ii"-1"ua.., of tl"panchayati raj bodies, because of the ever_p.e.*f il"rirg of rivalry.This problem still remains unresolved.

Lastly, experience has shown that the concept of elected repre-sentatives being in full control of the staff does noiwort in p.actice. lfthe sraff at the level of each panchayat .a_iti urrJ aifu farishad are tobe formed into separate cadies, they ure bourrJto t" r,Iuff u, tfr"y *iffnot attract enough competent persons. fhe state government person_nel were reluctant to come on deputation, *itiriut un u..urance ofrepatriation after a specific period.

.Thus, the panchayati raj bodies of the sixties tu*ed out to beunviable and unstable administrative strirctures in most states. After alapse ofa decade and more, political leaders ut the a;;i." and in thestates of West Bengal, Karnataka, and Andhra pradesh are again tryingto revive these bodies with some improvements. The Centre,s maineffort is in the direction of providing u

"on.titrtionui gui-rantee to the

Doores ancl ensuring periodic elections. It also aims at establishingdirect contact with them through financial utto"utio* urra control ofelection procedures, circumventing the gtates. th"." .ou". have ledto the widespread.suspicion in the states tfrat their autonomyis at stake.At the time of writing, a consensus is still to be evolvedregarding therestructuring of these bodies, to make them stable and effective. Ifthere is a lesson to be learnt from all tt

"r" "*"r"i."., it is that ad_ministrative structures based on theoretical u..urnption, about thebehaviour of people are bound to prove a failure. irl -y ui"*, to*tbodies can survive only if there is no conflict of intlr"riilt*""r, tr,"*and the sections already entrenched in the body politic- perhaps thesolution.lies in making the jurisdiction of the panchayat samitis andzura panshads coterminous with that of the MLAs and Mps as far as

243Administative Stntctures

oossible and thus eliminate feelings of rivalry betweenthe two sets oI

;;;;;;;r;Jatives. H.armoiv rather than-conflict of interests

itro,lta U" the guiding principle of organisation' There are' of course'

"irt"t *p"",. iit" "ito*tio,r

of 'esou'c"s'

technical manpower and

ai"i.i"" ir p"*"rs on which a consensus has to be reached among the

i"ri*"f, ui" .nd local leaders' I believe it will not be difficult to evolve

"g."".J.,, on these points, once the feeling of rivalry is eliminated'

Meanwhile, two new .,,u",ut"' were created at the district level:

the District Industries Centre (DIC), and the District Rural Develop-

-""t ag"*y tnRDA). The forrrer was the brainchild of Fernandes'

.i.ri.ter"fo, iniustries in the Janata government of 1977-79' The latter

was the handiwork of the Indira Gandhi government of 1980-85 and

*u. oti6"uffy meant to look after the anti-poferty programmes' Al-

iftougftbrC "^ continuedbythe Congress government' it has notbeen

deujoped to its full potential. The National Commission on the

Development of Backward Areas found the working of DIC in some

ai.tti"tt promising enough to recommend the strengthening of this

structure.ButlfonndinlgS6-ST,aschairman,KhadiandVillageIndustries Review Committee, that sufficient attention was not being

p"iJ "t

ttt" "*tral and state levels and the presiding collectors needed

policy and pcrsonnel support. DRDAs have on the other hand' grown

in strlngth and importance. It is still to be seen how they will mesh with

the proposed panchayati raj bodies'

It is a matter for great satisfaction that while the panchayati raj

system that was built ai a corollary of the C'D' Programme collapsed

after a time, the National Extension Service that preceded it proved to

be enduring. In due course, it provided the infrastructure at the

grassroots fir raising agricultural production' Other supporting struc-

iu.es were built to suit the expanding requirements of policy' It is now

recognised that the greatest aihievement of India since Independence

is hei near self-sufficiency in foodgrains and a higher rate of produc-

tivity in agriculture. The administrative structures that made this pos-

sible werJnot built in a day. They developed over severalyears through

close consultation between the Centre and the states, and with the help

from Indian experts outside the government, as also -from

American

institutions likqthe Ford Foundation and the Rockefeller Foundation'

244

between research, education and eKensioq ug.i"uftu.ui universitieswere established in the states on the mqdel of the Land Grant Univer-sities of USA, under the overall supeniision of the Indian Council ofAgricultural Research. These were meqnt not only to turn out agricul_tural scientists needed for field work b[t also to iorge link betweenthe faculty on the one hand and the top echelons of state agriculturaladministation and the practising agriculturists on the other. Extensionbecame a division ofthe university, so that the scientists could learn.atfirst hand the process of translating the laboratory findings into higheroutput in the farmers' fields. The fourth phase was the iniroductiJr ofnational demonstrations and the organisation of coordinators for im_

The input division of the centralministry of agricultor" *us."sporr.iUt"for ensuring the necessary inputs throrlgh uip.op.iui" J_inistrative

llll-illi"i I" the third phase, wirh a vlew to p.ornore close linkages

portant cereals, followed by olher crops and disciplines. According toSivaraman, the credit for the frst goes to Dr M.S.Swaminathan and forthe second to Dr B.p.pal, both of the ICAR. To enable the DirectorGeneral, ICAR to speed up research, he was empowered to sanctionschemes up to Rs 50,000 without going through the usual procedureand to organise an annual get-together of all risearchers to evolve anagreed list of priorities. Sivaraman adds: "Even though the entirestructure placed a lot of pressure on thb scientists who were used to*-*\ing at their own pace, in spite of the temptation to revert to theold days of laissez faire, the structure has produced the results whichall concerned must be proud of... Reseafch in India had so far been aone-man affair. Researchers were a sectetive lot and would not evencompare notes. To build multi-disciplinpry effort in this atmospherehas been the most difficult management problem faced by all of us onthe job." Dr M.S.Swaminathan introdutced innovative prog.urn-".slch as the Operations Research project and Iftishi Vigyan Kendras.The object was to mount a multi-discipllnary attack onlhe problemsof the village as a whole and provide trainting to farmers to disseminate

Ilf" Onr,r:: may be idenrified. In the first phase, when theemphasis was shifted from exrensive tq inte*i";;d"J;", the NES,with theVLW and the agricurtural extonsion offi"", u,iilJuro"t r"u"r,

::T-":j""11.._Y improved pracrices for achieving iigt

". yi"Us p",

acre. In the secondphase, the number Ws were doubled to twentyand agricultural scientists engaged to s{rpe*ir" una ujui." the VLWs.

245Adminis trative S tructure s

the latest technology. As chairman of the committee to review the

air""iorut" of "xtension

in 1988-89, I had occasion to see the excellent

work done by some centres under these two projects' My overall

;;;;;; # rr'u, ,r" mult! disciplinarv ethos is vet to be firmlv

established.

The story of the administrative structure in the field of agriculture

will norbe complete without recounting the fifth phase' the Training

unJ Viri, system of extension, T&V for short' It was- adopted on the

f"..uu.ioo of tte World Bank which had found it working successfully

in rort"y. Urraer this system, the VLW was trained periodically in all

the details of the new technology by the research workers in a farm'

with the help of demonstrations laid out by them' The VLW in turn

formed a group of 40 farmers willing to adopt the technology and lay

the demoistraiion in the field of one of the goup' Specialists at the

district headquarters would hold training sessicns for the VLWs peri-

odically, to remove any doubts and to keep them informed about the

recommended technology. This system is now in vogue in almost all the

major states and has coniributed a great deal to the speedy transfer of

tecinology. While the country can reasonably be proud of the success

of the phised development ofthe structures in agricrrlture administra-

tion, there is no reason for complacency. As chairman of the committee

t"f"tt"a to above, I found that the linkages between research and

extension, the training of the VLWs and the communication between

the VLW and the group of fariners still suffer from many deficiencies'

Continuous administrative vigilance is needed if the structures' so

assiduously built up, are not to collapse in the near future'

Now, I shall briefly refer to'the agricultural credit structures' For

one thing, credit is an important input in agricultural development' For

another, I had some part to play in the evolution of the structure'

Serious attempts to build a uniform set of structures throughout the

country were begun in the mid-fifties, with the adoption of the recom-

,n".rdutioo, of tle A[- India Rural Credit Survey Committee of the

Reserve Bank. The Committee's main aim was to rapidly increase the

share of institutional credit to farmers from the very low level of 7 per

cent revealed ty the Survey. Of this, 3 per cent only came from

cooperative societies, the rest'was from government' Its integrated

scheme of rural credit consistedof p three-tier cooperative structure

246

t

Two Administraton : Interactibn Between ICS and IAS

with a large-sized cooperative socioty at the village level, a districtcooperative central bank at the district f"u"f u.rJr-".tui" cooperativebank at the state level, for managing tle aafery oisnJrt unA _"ai*3:*r -..TOtj,

and a separate two-tiiri structure for long+erm creait.norn structures were supported and tsupervised by the Leserve Bankon the one hand and the State Registrai of Coop".rtiu. Societies onthe other. Based on the recommendation by the V.L.Mehta Commit_tee, a slight change was made in the gize ofihe p.irnarf soci"tX fixingthe ceiling at 6000 as the populariQn to b" ;*;; ;y the society,although at one stage the Flanning Commission iriei t" impose auniform. pattern_of one village-one society as in the case ofpanchayats.Dr Venkatappaiah must be given the credit for the rearguard actionagains.t this onslaught and a realidtic resolution of the dispute.Provipions were made for another sot of cooperative structures forprocessing and marketing the produde of the members of the creditsocieties, with the National Cooperative Development Corporation atthe level of the central government. A third set of structures wascreated tor Warehousing, with separate corporations at the state andcentral levels. The central arrd state govern^ments participated in theshare capital of all these institutions, the latter being assisted bylong-term loans by the Reserve Bank out of a special fuid created byit out of its profits. State partnership was supposed to increase thefinancial resources not only directly but atso inairectly through attraching deposits.

The Reserve Bank undertook to come to the aid of the coopera-tives in the event of national calamities, through another speciaffundknown as the Agricultural Credit Stabifiisation Fund. Elaborare arran-gements were made to train the personnel needed for all these ac_tivities, through another set of structures. This was indeed a massiveeffort involving the administrative personnel at all levels. In Orissa, Iwas privileged to handle this programme. With the full support ofNabababu, the chief minister, i reorganised the cooperative' depart_ment, set up the administrative structqres envisaged and made thernfunctional. I got the Reserve Bank to accept a majoi change to suit localconditions, viz., allowgrain transactions in primiry societles along withthose of.cash. But by the sinties, it becape obvioui that most coopera-tive institutions were coming under the domination of the richer clas_

247Adminktrative S tntctures

ses. The share of the small farmers, particularly at the primary level'

was tow ana tne influential were defaulting in repayment with impunity.

I re-member how shocked I was to read the tour note of Sivaraman after

iir Jti*o sutg"rh subdivision of Samba$ur district in 1962 which laid

bare the unplJasant facts. As evidence of this phenomenon began to

gr"* *a tle extent of distortion revealed, the promoters of the

Integated scheme, Dr B. Venkatappaiah in nartigull' wero per-

,ortZa. fft"y set about devising remedial steps' The Rural Credit

Review committee was appointed in 1966 under Dr Venkatappaiah's

chairmanship. New structures, such as the small farmers developrnent

agencies uoi th" marginal farmers and agricultural labour agencies

liere brought into being as result of its recommendations' Dr

Venkatappiiah, who was then member, agriculture in-the Planning

Commisiion toured the states extensively to guide the field staff' He

set up a Central Coordination Committee (CCC) in the Planning

Commission for expediting the resolution of policy issues' This com-

mittee continued even after he left, though less effectivrily' Finally, it

was wound tp it 1977, as explained earlier during the Janata regime

as a sop to the prestige of the agriculture ministry'

An innovation of the seventies, was the farmers' service societies'

Large-siznd cooperative organisations at the block level were intro-

ducld at the insiance of Sivaraman's National Agricultural Commis-

sion. These societies were intended primarily to serve the interests of

small farmers. Subsequently, this was extended to tribal areas also'

Thus while the concerns of small farmers and tribals were being

addressed, the long-term needs of agriculture development were also

focussed upon. The result was the establishment ofan apex refinancing

institution, called the Agricultural Refinance and Development Cor-

poration. Sivaraman played a significant part inall these developmqnts'

along with Dr Venkaiappaiah. As Vice-Chairman, NCA, he sowed the

,""d"fo, a separate apexbank for rural credit, as distinct from agricul-

tural credit. Ii finally iook shape in 1-982 as a result of the CRAFICARD

report. As already recorded, I had the privilege of shaping this apex

barrk, UagaRO and presiding over it, in the last years of my active

career. Mentioo -uy ul.o be made of the induction of commercial

banks into the agricultural credit system in the wake of nationalisation

ofbanks in 1949, the recognition of agriculture as a priority sector and

248 Two Adnrinistraton : Inturaction Between ICS and IAS

the adoption of the multi-agency appfoach. NABARD is now at theapex of the entire rural credit system. In other words, new sructureswere brought into play. I have ilrawn this broad pi"t"* ," show howthe existing structures for delivering ru[al credit *i." *oh"a ou". tU"last thirty-five years and how adjusttehts had to be maie r.om time totime.to.meet the changing situitions. Vigilance, flexibility ana readi-ness to ihnovate were the hallrnarks ofthoie that had the responsibilityfcir taking the necessary decisions andt supervising in" uOroini.r.utiu"structure.

,In the same spirit, I wish to reflect on some of the conceptsunderlying the present system. First, I llave begun-to doubt the overallefficacy of state partnership in cooper4tives. While it no doubt placedlarge state funds at the disposal of these societies, it has not fulfiltedthe other expectations, that is, to attract large deposits from the public,particularly at the primary level and to

"rrhun"i the credibility of the

institution as an instrument in the service ofthe poor and the weak. Onthe. other. hand, it led to greater control by the state and greaterpoliticisation. The Gujarat governmen( recently went to the extent ofdenying some cooperatives the freedom to repatriate the state,s con_tribution tr-r the share capital, on the ground that such repatriationwould lead to the erosion of its con(rol. It made this astonishinsstatement in an affidavit before the High Court, despite the p.omisJheld out originally under the integrated scheme ofRBI that the state,sshare would be repatriated in due cotrrse. Of course, there is thegeneral argument against repatriation that the cooperatives whoseneed forfunds have been growing, can ldt afford repatiiation even afterthree decades. But obviously the benefits of the reiention of funds hasto be weighed against its disadvantages dnd each society must have thefreedom to take a decision if the cooperative is to be worth its name.State partnership and the excessive reliance on RBI funds havemilitated against the growth of these societies and have led to adeplorable laxity towards repayment. No doubt, factors like politicisa_tion and the absence of local cooperative leaders of staniing havecontributed to the rapid rise in the number of wilful defaulters. How-ever, I believe, state partnership triggered all these wrong perceptionsAnd contributed to the eventual loss of the cooperative character. Weset out to create a network of cooperalive business institutions and

I

249Admini strative Structures

ended up by creating a large number of bodies with,no.respect for

either the principles of cooperation or the caffrons ot busrness'

Secondly, the time has come for reducing the role of the Registrar

of Cooperative Societies (RCS) and his underlings' Originally' the RCS

wa, hal"a as a friend, philosopher and guide' But itr the present

condiiions of the blatant displryof authority by the political party itr

pO*"., tft" registrar has tended to become- an instnrment of mis-

lii"uo* interiention and a convenient facade for dubious dealings.

Thedepartmentalpersonnel,whowereknowninthefiftiesandsixtiesfor theii professional contribution, are now using the cooperatives for

their own advancement. I therefore think that cooperatives must now

be allowed to develop their own staff, to be appointed and controlled

by them and to enjoy greater autonomy. The Cooperative Societies Act

has to be suitably amended to enable the societies to manage their own

affairs as genuine, democratig voluntary organisations of user-mem-

bers.

Third, NABARD is still to fulfill its main aims of extending eredit

to non-farm activities, of developing research programmes into

relevant technologies for rural development and of spreading the

tenets and culture ofdevelopment through credit' I had an opportunity

to study NABARD's activities in regard to village industries during my

chairmanship of KAVIRC. I found that a few faltering steps had been

taken in 1986. The thrust and leadership expected of Nabard were

nowhere to be seen. It appears to have lost its origioal momentum

during the Kaul years when the chairman was busy making it conform

to the whims of the bosses of the finance ministry and practising the

doctrine irf personal loyalty in administration without regard for the

interests of the bank. His successor's style and initiative seem to have

been affected by the on-going review by a special committee appointed

by the RBI at tle instance of the World Bank and the rising tensions

in employee relations. Since 1986, I have begun to regret my failure in

1983 to press for an extension of my chairmaship for another two years

as originally recommended by Dr I.G.Patel. I made no effort to con-

tinue as I had lost sight in one eye and was in constant pain due to

glaucoma. I did not envisage then that I had the capacity to bear the

iain and carry on with one eye. I should have set aside my persoaal

250 Two Administraton : Ihteraction Between ICS and IA;

difficulties and lobbied for a three-ye{r tenure so as to carry forwardthe ideas that were bubbling in me, to ilirlfill NABARD's aims.

Before I have done with rural credit, I may inform the reader thatthe aim set before the nation in 1955 to reduce the share of non-formalcredit in favour of formal credit hasAccording to the All-India Debt and

achieved to a large extent.Survey 1981-82, pub-

lished by the RBI, the institutional credit agencies (government,cooperatives, commercial banks, provident funds) ac-counted for 61.2 per cent of the cash of rural households, whilethe non- institutional sectortraders, relatives, friends, and other ) accounted for 38.8 percent. These figures may be compared with 29.2 per cent and 70.8 percent of 1971 and 7 per cent and 93 per cent of 195L, respectively. Thisachievement was possible partly due tb external aid since the sixties.The World Bank had been giving liberlal credit to ARDC. I was keenthat this arrangement should continue for NABARD. So, when in themiddle of 1982, I learnt that some Amorican economists had begun topropagate the view that external aid tO developing countries towardsrural credit should be remnsidered in view of certain harmful conse-quences, I was perturbed. They inveighed against low interest rates andcheap credit policies on the basis of their studies in Latin America.They argued that if interest rates were kept low under political pres-sure, the rural financial markets woqld get distorted, reducing thegrowth of deposits, encouraging defaults aad misuse of money andweakening the credit institutions. Althougb there was an element oftruth in these arguments, I thought that [t would be unfair and incorrectto generalise without taking.into account the Indian experience overtheilast three decades. We in India had demonstrated that through ajudicious management of administersd rates of interest along withother measures like greater accessibility to banks and the spread ofbanking habits, deposits could be built up impressively. We knew toothat capital accumulation could be accolerated in agriculture and ruralareas througb cross.subsidisation of interest rates and pumping ofcredit for viable asset-building progra{rmes. So, I decided to conducta discusssion meeting in Washington uath the persons concerned tocountef the influence. of Dale Adatns and other economists andprepare the ground for the proposed NABARD I Credit Project. The

251Administrative S trucfire s

meeting took place in November 1982 with the help of John Mellor of

lU" lotJ*xiooA Food Policy Research Institute' I will not be so rash

or p.".rrrrpr"oos as to claim that this meeting set at rest all doubts in

t# circles that mattered. But I venture to think that I succeeded in

persuading the World Bank officers not to reject the NABARD

propo.ul Jut of hand on the basis of the thesis of Adams and take

toil". good look at it. Readers may know that some time later, the

WorH Btk insisted on the appointment of an international committee

to review the Indian rural credit delivery system as a condition of their

sanction of aid. The committee was appointed by RBI under the

chairmanship of Prof A.M.Khusro with two or three foreip members

and it was asiisted by a foreigr consultant. I close the story at this point

as I am not cle ar about the recommendations of the committee and the

aition proposed to be taken on them. Suffice it to say that the last word

has not been said on the structural problems of rural credit'

Sivaraman has drawn m1 attention to his experiences while setting

up an administrative structure for the management of an inter-state

pioject. In 1957, the Government of India decided to resettle a lakh of

iefugees from East Pakistan, then scattered over Calcutta, in the

Koraput district of Orissa and the Bastar district of Madhya Pradesh

and to reclaim a large area for the purpose. A.B.Fletc[er I.C'S''

prepared a project at a cost of Rs 26 crores. On its approval, the

government created a separate administrative structure called the

bandakaranya Development Authority in September 1958' It had a

board comprising eight members: a part-time chairman, a full-time

chief administrator, the chief secretaries of Orissa and M.P., a repre-

sentative of the home ministry and the three heads of finance, agricul-

ture and engineering divisions of the Authority. The board was

empowered to sanction schemes .up to Rs forty lakhs. Sivaraman hoped

that all was set for achieving quick results. But in fact, the work was

delayed and the project began to limp to the surprise and annoyance

of the powers that be. What were the reasons?

According to Sivaraman, the structure revealed several defects in

practice. First, the chairman, being part time, could not play an effec-

iiu" putt in unravelling tricky situations and expediting decisions'

Sesond, the three heads of divisions on the board felt they were equals

and saw no reason to yield either to each others' point of view or the

252 Two Adrninistraton : tnteraction Between ICS and HS

counsel of the chief administrator. Factionalism reigned supreme.Thir4 .the .West Bengal governmegt, which was r-esponsible formobilising the refugees for resettlement ,"* not ,"pr.r.nted. Fourth,

the nare.nl ministry Relief and RehXbilitation, iiJrro ,"ut oo tu"board, with the result that its. officiak hpd no sense oi purii.iputioo uoAassumed critical attitudes. Fifth, the mlnistry of finanl, which was notrepresented, failed to go along with the decisions of the board readily.

It took Government of India two precious years to discover thesedeficiencies and to reconstitute the board. fi"t *lif. doing so, itreduced the financialpower of the board toRs ten lakhs. What an ironyto give a strengthened board less powersl The new chairman waswhole-time and his headquarters r*is near the project site, Koraput.He could be specially empowered by the board. The three divisionalheads were kept out ofthe board and the chief secretary, West Bengalwas included. This entire story reveais that the basic pritcipleslfadministrative structures are not easily learnt and may beignor"d oolyat one's peril.

A few comments on all-India services in general and IAS inparticular are in order in this sqction, as these ,"rui"", man the basicndministr2llys structures in our federal polity. Three questions arise inthis context: What are the aims of an All-India service? How has theIAS contributed to the attainment of those aims? Is there a betteralternative to the IAS?

- . 11 ur.*-". to the frst question, the following may be cited as the

objectives of an all-India service: (i) to ensure the uniiy of the country;(ii) to provide a uniform, impartial and efficient administrationthroughout the country; (iii) to attract tle best talent from all the statesto the service of public administratiog; (iv) to provide strong andmeaningful administrative links and periodical excirange of e"pe.-ierr"eand knowledge between the Union and the states;

""J1g to make the

administration in the Union and the states equal to ihe challengesposed. by the people's aspirations and the Directive principles andother ideals enshrined in the Constitution.

Nobodyhas seriously questioned tho relevance ofthese objectives,nor has any alternative been proposed tp the IAS for achievins them.

253Administrative Structures

The Sarkaria Commission on Centre-State Relations which has recent-

i, noo" irrto tt "

working of the IAS and all-India services' particulaly

i'u!h aspects as have bein raised by the state governments' has recom-

^"nd"i, intu o/ra, as follows: "(i) The All India Services are as much

""".suty today as they were when the Constitution was framed and

continue to be on€ of the premier institutions for maintaining the unity

of the country. Undoubtidly, the members of the All India Services

have shown ihemselves capable of discharging the roles that the

framers of the Constitution envisaged for them' (ii) aoy move to

disband the All India Services or to permit a State Government to opt

out of the scheme must be regarded as retrograde and harmful to the

larger interest ofthe country. Such a step is sure to encourage parochial

tenlclencies and undermine the integrity, cohesion, efficiency and coor-

dination in administration of the country as a whole. (iii) The All India

Services should be further strengthened and greater emphasis placed

on the role expected to be played by them. This can be dchieved

through well- planned improvements in selection, training, deploy-

ment, developmenthnd promotion policies and methods' The present

accent on generalism shouldyield place to greater specialisation in one

or more aieas of public administration. Training and career develop-

ment policies should be geared to this objective. Disciplinary control

should aim at nurturing the best service traditions and relentless

weeding out of those who fail to make the grade. Finally, there should

be greater coordination and periodical dialogue between the

authorities in the Union and the State Government who are responsible

for the management of these services."

Some of the new ideas the Commission has put forward are

compulsory deputation of service offrcers to the Centre to cover even

promoted officers, modern and more enlightened systems of incen-

iives, advisory council for personnel administration for all-India ser-

vices with participation of states, and gradual expansion of the ooncept

to cover subjects like engineering healtlq agricultute, cooperation and

industry.

Some critics have said that the role of IAS in regard to the unity of

the country is rather limited, as in the ultimate analysis, its members

cannot act contrary to the will of their political masters' Nevertheless,

it cannot be denied that the IAS officers can render useful service bv

254

advising fleir political maslsls gorrectly, keeping in view the national

lj.i'::1.I$ to :espective of wheth"+ th"tJ";o;;! io **""tioo

with the affairs of the state govern-""r * tt"."ot J gTu"lnrn"rrt. nut,are m€mbers of the LAS allcrwed, m^practice, to present freely argU_ments- conducive to promoting natiohal uniry ;d to tf*thg tt

"centrifugal tendencies based on caste, bommunal, linguistic and otherfactors? Is the central eoverrrL^_ ^_-:, ..- To"rrt willing and competent to protectthem against victimisation by the centrlfugll forc.rt;ii;r;;;il;:are all IAS officers able to rise above the centrifugal tendencies andgive primacy to national considerationrj? Some of ,ri*t o t uu" *o.t"aoutside our native states know how Nome governments try to dis-criminate in favour of the'sons of the so[' andiiscourrg" ;ffr""., f.o-taking a truly national view on crucial matters. Alth"ough these arematters which have to be handled detcately, it will be usefrl to increas-ingly involve non-political organisations like the Union public sorviceCommission and evolve consulting piocedures, by which potentialcontroversies are nipped in the bud, and those officers, who actbonafide in the discharge of their duty towards the ideal of nationalunity are not made to suffer.

. -It is widely accepted that the IAS has been able to bring about a

uniform system of administration throu$hout the country as envisagedat (ii) and (iv) above, through

"o-oioo training, exchange ofix_

perience and knowledge and building up ofcontacts with thek counter_parts in the Union and the states. There is, of course, a great deal tobe done in regard to efficiency and impartiality. While efficiency canbe increased by special training and an appropiiate system of rewardsand punishments, impartiality has to be piomoted through other fac_tors such is character-building and freedom from outside pressures.

It is necessary to ensure that the talents available in the all-Indiaservices are shared by the Centre and the states equitably, so as tostrengthen the country's administration. One of the methods employedis deputation from the states to the Cenfte for specified periods. Thereis truth in the criticism that this system has not been followed faithfullvand officers of some states have contihudd to remain at the C"rrt." f*anduly long periods. On the other hand, it has been argued that theCentre nust have at its command compdtent and experie-nced officersto man specialised posts on a continuirig basis. Sone way has to be

Administrative Stntcarcs 255

found to reconcile these two imperatives' To my mind' the best solution

il;,;t",ry;;"."ate m" r"* bentral posts which require specialised

il;il;;;t""ntinued tenure and create a special pool in respect

;i;;;;;?;""t"c out the majoritv of the posts to be frlled in accordance

ffi;;;ffibs of rotaiion aod deputation' lt maybe pointed out

,il" ,it" n'Jt.ioeme, which was introiuced in the sixties ran into rough

weather and had to be abandoned' I feel that the schemc' though good

;;.t""tpl";; opposedbysome members of theservice andthe state

;";;;#";, mai'Jy due to some wong selebtions' apprehensions of

the states about the non- utilisation of the deputation quotas in their

."at"t, -A above all' the motivated opposition of some inlluential

.".t"rt of the Scrvice, entrenched in positions close to the seat of

p"*". ltt ,ft" C"ntre. Also at that time, there were ao posts in the states

iorop.ruUf" in emoluments to the secretaries to the Government of

iiiii. No* tftut the situationhas beenremedied" it is advisable to revive

,h";;;i*h";" in a revised form, while simultaneously enforcing the

,otuiioout tenure of the deputation system' Members -of

the Service

.urt ,""1i." that in the absi"ce of a pool scheme' the Centre will not

refrain from retaining some officers for long periods, a process which

giu"t t"op" tot fuuouiitism, lobbying and all the attendant evils' Better

i-"u" "

.vr,"rn of selection, however imperfect' th'an give f16s lsign to

manipulative Practices,

As regards the third aim of the All India Service' there are reasons

to tniot tf,at atthough the IAS has been called a premier service, lt.has

"ot "t"*"a"a i" atlacting the best talent from different baikgiounds

and from different states. Some have argued in the past that as the bdst

talent is not being attracted, the service needs to be dovn-graded and

its scope li-ited.-Thi. i. u p"*"'se view of the matter',What is needed

i. to i"*rr.ia"r the scheme of remuneration' conditions of work'

oppoauniri". ofjob satisfaction' etc'' and make necessary changes to

aitiact the best talent. Fortunately, some action has been taken by the

Cou"rrr-"ttoflndiaontheseissues'Oflate'engineers'doctorsandalurg" nu-b". of women with high academic-qualifications have opted

ioioin tie faS. fnis should not Gad to complacency' All right-thinking

o"i.oor. who believe in the efficacy of an all-India service in a federal

[i-to *a the continued validity of the aims and objects listed above

Two Administrators : trnteructton Between ICS and IAS

that they are exceptions and the generh'l ,uo of uarioiri."tors prove

:l:1.,".o-.::ili"" My.:y. p".""p1ioo hs well as ii" f".""p,ion. or

several who have studied the experiencds of IAS officerl are tnat whilesome of them are not suitable for devplopment administration evenafter training, the majority are. Further, [t ii not co;;;-;;;;;;;;;::.j?:1"9:Y:*

law and order and development. For example, properadministration of revenue law is inefricabty tinkea wittr variousaspects of rural development and each subjeci has serious repercus_

256

*^::11.1",.*rything necessary to. facilitare the IAS gerring itslegrtrmate share of the best taleni avaihuUt" io ti" "-o-uot

v.

.On.rhg fifth question of suitabillty of the IAS for the tasks ofmodernisation and development under th, a";;;;;., rhere aredivergent opinions. While some_ nryitefs and "";;;;;^ on publicadministrarion have said that the wrb".; ;;;u;;;lic moder, towhich the IAS largely corresponds, is not suitable, soJe others haveargued that with appropriare training u"d ".i;;;";;ih-" r"*i"" *obe made equal to the chalrenges. The fiFst set are inclinedio aiviae tretasks of public administration-ina ,*" [.""J*"g"-.-l*, iu*

"nA o.d".or maintenance of the routine administration uiJ a"u"fop.".r, ua-ministration. This dichotomv has led rhbm to tfri* ifr"i ifr" f,"owledge

and skills required for these two catqgories are mutually exclusive.Judging by Sivaraman's and my own gxperiences, this conclusion iswrong. When more such instances are presented, the usual retort is

sions on the other. I have noticed that over- Lmphasis on Jevelopmentwolks h3 led to the neglect of land reco.ds and the slack implemen-tation of land reforms by the district administration. Modernisation aspart of development is not carried out in a vacuum but within theboundaries of a legal and orderly frgmework. an aJ_inistratorentrusted with its maintenance will give a better account of himself ifhis links with development are fosterid, not when hei, downgruOea asa cog in a machine. As noted earlier, an attempt in this direction wasmade in the aftermath of the Administrative Reforms Commission butthe Government of India wisely rejected this upp.ou"t, n_phasis waslaid on professional

_training, I1id-""r6", "ou.."r,

anJ training inmanagement' Recently, the Governmenfi has announced its decisionthat every IAS officer should undergo a week,s refresher murse,irrespective of the position he or she holds and that such a course will

257Adm in i s tra tiv e S tru c tu re s

be compulsory for ofhcers who have put in 17 years of service and are

il;i;?;;il.otion to the.rank of joint secretary.or commissioner'

while these decisians are to be welcoked, I would like to caution that

f" l"J pt*f"e, training should not be reduced to a ritual' Govern-

;;;l;.i" ensuie that the institution grving the training is properly

,J*"J, *ft "fl

the facilities for study, reflectio4 etc' provided' I can

testifu. on the basis of my experience as Eisenhower Exchange Fellow

#;il;;i;irc cotu'ui" universitv course' how very beneficial

.u"h t."irring in mid-career can be to the members of the service'

I may refer in this context to the book Bureaucrats under S/r'ess 'by

Richard P. Taub(University of California Press' Berkeley and I.os

Angeles, 1969), wirich presented the results of an empirical study' in'DA-A+,

of tn"' adminislrators and administration of Orissa' with par-

,i"uiu. ."f"t"""e to the conditions in the capital, Bhubaneswar' While

summing up, he criticised the obsession of most commentators on

p"iii" "attf.ttration

in developing societies with \he question of

accountability of bureaucrats to politicians" and emphasised the need

to concentrate on nthe question of fitness ofbureaucratic organisation

to accomplish development task'" He went on to point out that the

uuto", unA attitudes of IAS offi""t. in Bhubaneswar were nmarkedly

different from those of the populace," that they were osomewhat out of

*u"i U,ft ,ft", populace" but ihat "the inllicted distance between them '

and the people was not necessarily detrimental for the accomplishment

of deveGpment task and the fulfrllment of the modernisation process'

Jm n,n"it ittlerent difficulties such as gaps in communications and

limited resources "Seen in this light,' he wrote, "the IAS has

f".tor-"d remarkably well." Although he thus recogr:rises the con-

tribution of the IAS to national integration, policy-making and even

isocial overheads needed to make modernisation possible"' he con-

cludes: "ft maybe doubtfulthat anybureaucratic framework would also

."""""a in piomoting agricultural development, manufacturing and

distributingiertilisers, pioducing steel, mining ores and changing the

social attitudes of the people. However, it is highly unlikely that the

IAi i. going to t"t limits for itself regarding those tasks it can perform

"J ,fti't it lannot." He ended his book on the gloomy prediction that

"unless the bureaucratic organisation (meaning the IAS) contracts' the

administrative apparatus lili collapse" and 'thr hungry and frustrated

Two Administraton : Interaction Between ICS and IAS

wise but also to hive off some acti to new forrns of organisation

ljfnle" wiU try.n to demagogues. Thede is an element of truth in thesestatements, although the picture drawn is rather exag;e.ated. Twodecades have passed since these woids were written and the ad-ministrative system has shown in tni, p.rioa roma"r, ff""iUifiry _a::*::*.::::nly to equip.to some e*tent the bureaucratic organisa_

.,'t:^lT: l:*..ols, methods and attitirdes ltusrrgh training or other-

changes, some good and some taa, while keeping th""t"n ".."otiult111i",.,

",.r"y,"(i) clearly defined hierarchy of ifn".r, (ii) clearly.,Funeo sphere ol competence in the legal sense, (iii) selection (notelection) and appointment on the basis giprescriUed quAin"atiorr, ilga contract r"l relationship, with rules relating to resignatioq termina_tion and.other conditions, (v) salary s"gtes ild p"oiioo according torank in hierarchy, (vi) subjection to authority L one, s official be-nauour onty, (ur) a career, (viii) the office being the sole or at least theprimary occupation of the incumbent, (i$ non_o=wnership of the meansof administration, and (x) strict and sysfematic discipline.

like corporations and man them with otfrer types oip*fJrjorra., .o_"ofwhom have also been inducted into gbvernme"t i"furt^.rrtr. ffr"r"I :t^T_"::": :. -uch more to be do"" il,n"." air""riJ,i. nlut on" tuiog

I "t,",",.,',n: bureaucraric organisation of India is ,ro longer based oo

trre weberian model. It has undergotre, and is undergoing several

- Major changes brought about through the pressures of democracy

.ana ae-v.e_toryrynt may be noted. The fif-st two principles have had to

be m odifie d for the purpose of coordination. While sel^ection continuesto be. the dominant principle, there is increasing clamsgl for spmeappointments (not in the IAS,1 to be made to satis$ elected leaders andfor lowering the entry qualifications fot the IAS. The sixth principlehas been expanded to cover non-official or personal conduct in suchcircumstances as are likely to influence the conduct of official duties.An officer's career at certain levels is now increasingly being subjectedto the criterion of merit rather than seniofity. As meit, Iite fatherloo4is n-ot easily ascertainable, it is open to abuse. The ninth point whichwas introduced by Weber to distinguish the bureaucratic arganisationfrom the practices of a feudal society, h4s become thejustification forpeiiodic transfers of bureaucrats so as to prevent theL from makingundesirable connections. It is unfortundte that this principle is noi

259Administrative Struchoes

being abused blatantly to enable the politicians to show their power

"ra !"* a make money. This, -ote fhao any other single factor' has

i"ra".;a ,fr" Urreaucracy ineffective and incapable of carrying on their

l.""i"p-"" ".f".

I recall how the financial institutions had found it

;;;A to stipulate that state governments should not transfer of-

i** i" ift-g" of certain schemes without their consent and how this

** ..r"ot"i us an infringement of their prerogative' Once' IDBI

*i nfraa funds to Maharashtra government when it transferred the

.unuging ait"ctor of the state fin-ancial corporation and- relented only

*h"r,"it -had

made sure that the successor was equally competent'

Si-ilurly, as ct uirman, NABARD I once told a conference in Madhya

Pradesb, in the presence of state ministers, that while it was the

p."rogutiu" of the government to transfer officers, it was the preroga-

iiu" oiNegARD iot to release funds in the event of a breach of the

condition of sanction and the wise course was for both to understand

thi, urrd subordinate their rights to the needs- oJ the scheme' Public

administration needs some continuity and stability and governments

should therefore avoid frequent transfers, under cover of the Weberian

principle or their penchant for displayrng power'

The IAS, aswe know it today, has been built up over the years with

recruits from different sources. When it was first mooted as a successor

to the ICS, important Congress leaders like T' Prakasam of Madras

"*pre.red

'.e.lrvations and wanted to develop the provincial ad-

ministrative services instead. But for the foresight,determination and

iact of SardarVatlabhbhai Patel, the IAS would not have come into

teing. Ue started the IAS with war service candidates who had been

fourri fit fo, appointment to the ICS' Next came the officers of provin-

"iul ."*i"". wio held the fort when a large nurnber of British and

Muslim officers left the country creating many vacancies' Special

recruitment schemes were announced to induct olderpersons from the

open market. Although regular recruitment through competitive ex-

"irinutions w"r" ,1-196 i-iediately in 1928, it was rightly decided not

to take large numbers of young men belonging to. the same age group'

e, u ,"ruti, for several years, IAS cadres looked like, motley crowds'

iu"ting no*og"neity. elthough different backgrounds of the officers

"oofa

"U" .uiJ to Uu" brought to administration a rich variety of

""p".i"rr"", they stood in the way of the IAS developing a distinct

260 Two Adntinistratorc : I&eruction Between ICS and IAS

personality of its own. To build up es1)it de corps, brotherhood and acode of conduct befittine a premier Alll lrdi" d".ri;;;; nor easy inthese circumsrances. Th-e *d."..u, b" ,"iJ;;;;;improved inhomogeneity only recently after the compeiitive "*i.i-nuCoo fru, U"_come the only source of direct.recruitnient. Even oo*, *ii, +O p.r""n,

vacancies reserved for promotions frorfi state servi"", aoJu ou-b". ofvacancies filled from scheduled castef and schedulJiribes on thebasis oJrelaxed standards, the situation is noifree r.o.iiii"urti".. nutas all these requirements flow directly from higher policies of nationalintegration, it is everyone's dury to find ways aid ,nlanlio wera al tr,"members into an All India Service with its own p".ronutity, p.of"r_sional attitudes and behavioural charaCterisrs, in ;pir;;f the difficul-ties.

The IAS can be-said to have reachqd its peak in 19g0 when one ofits members was appointed for the frst timeio the highest post in theservice hierarchy, cabinet secretary to the Government of India, andanother took over the most influential post, Secretary to the primeMinister.-It took 33 years for IAS to ieach this staie. Thehighestpositions in the state governments came to be occupied 6ythe membersof the service somewhat earlier. Some other imporiant positions, whichare not in the_ direct line of promotion for lASihave also been filled bymembers of the service. More important of them are: secretarygeneral,International Maritime Consultancy Organisation (IMCO); member,Planning Comrnission; comptroller and huditor genLral of India; chiefelection commissioner; governor and deputy govlrnors, Reserve Bankof India; and central vigilance com-irsiolei. at the state level, the IASYr,r, urg lati)continued to provide chief executives for public sector undertakingsalthough in the Centre, this practice has been stopped. I must add that

_ Equally important for maintaining tnorale is the self_image thatthe members ofthe service have. Its ouiliues are first drawn durins the

the image of the service depends not only on the iositions occupied byits members but the general perceptidn of their professional andintellectual contributions. Is enough being done for making thesecontributions known to the wider public? In this connection, mentionmay be made of Prof p.N.Mathur's survey of the intelleciual achieve_ments of Indian administrators. I would submit that all these develoo_ments should be taken note of in delineating the image ofthe service.

261Administrative S tntctures

training at the National Academy. They acquire precision and sharpl

,r"r, u.",h" officers sain experience and climb up the ladder of ad-

ministration. When the probationer iteps out of the Academy' he nust

have the image of a knight well- cquipped with the instruments of his

profession and ready to meet the challenges of the world with courage'

dignity and ski[, behtting his investiture. So, during training, care has

to"be iaken to see that the older colleagues do not impart, along with

professional skills and knowledge, their bitterness and.cymcism' It is

iesirable that the young ofhcer is encouraged to cultivate a certain

degree of idealism,tdespite the difficulties in his path. When he comes

face to fa& with the realities in the field he is more likely to strike upon

the correct approach if he has some idealism to start with'

The first posting is usually as subdivisional officer' I would con-

sider this a training assiguent that provides opportunities for making

mistakes and for learning from them. There is a controversy about

making him a district collector and magistrate directly in the sixthyear'

on qualifying for the senior scale. Some think that this is not suited to

modern conditions, as the present-day collector is called uPon to

perform a highly, complex set of duties and must, therefore, have

greater maturity and experience. I am inclined to agree with this view

and favour a stint in the secretariat as under secretary or deputy

secretary before a district charge, Nevertheless every member of the

service trains himself or hersdlf for the post of collector and must be

given the earliest opportunity to fulfil that role.

What is the self-image of the present-day collector? Is the system

allowing him to develop enough self-confidence, to plan his work

without interference and to discharge his functions to the satisfaction

of himself and the people of the district? He is not to look at himself

as one whose tenure is short and uncertain, whose initiatives are subject

to political interference and who nevertheless is required to achieve

predetermined targets. His biggest task is the coordination of efforts

Ly different departments and agencies who have a tendency to pull in

different directions. Generally speaking, a collector needs six months

to understand a district and its people, another six months to plan his

work and at least one to two years to realise his plan and achieve results'

His ability to coordinate also depends on his informal relations with

his colleagues in the district and these cannot be developed over a fpw

262 Two Adminisaann : lnteruction Between ICS and IAS

weeks, under the shadow of an uncejrtain tenure. The.importance ofcorrecting these practices cannot be oyeremphasised. However, I mustshare my wonderment during my toutrs as deputy governor, RBI andchair_man, Nabard in th"

"irtr,t", at the manner in wiich several young

ottrc€rs were carrying out their dulties as district collectors witiidealism and devotion, despite the inqeasingly unfavourable environ_ment. Trury they are the hope of IAS, the hope of India.

At highei levels, such as heads of departments and at thesecretariat' the image that an officer prlojects is one of attention to skillsof

.man-management, regard for de{ail, concern for field officers,ability to monitor and supervise and agove all, tact. As one goes up thehierarchy, he will come to realise tfrat while his position has thetrappings of authority, real power lies.in knowledge and ability ingetting along with others. He must appfeciate that he ii in a competitiveenvironment and can succeed only by sharpening and deepening hisprofessional skills. Officers in top positions view themselves mainly asadvisers and participants in the making of policies. With their capacityof visualising events in advance and of deriving common concepti fromapparently diverse facts, they must harrc the freedom to advise withoutfear or favour. Ordinarily, they do not mind whether their advice hasbeen accepted or rejected, provided their political masters takeresponsibility for their decisions. But of late, they are finding theirfreedom to advise curtailed and their pqlitical masters unwilling io takeresponsibility. Often they are discouraged from recording their viewsin the name of avoiding unnecessary paper work but really for thepurpose of saving the political masters from future embarrassment. Myexperience shows that the officer concerned will avoid 4 lot of troublefor himself by going on record.

I have often asked myself whether [he members of IAS have doneenough to project a proper image an{ to protect themselves againstmotivated attacks. Is there a role for tlieir Association in this regard?I have narrated two instances in wlich {he IAS Association tried in thepast to focus attention on this aspect. While in the first instance in 1951,the attempt was well-received, in the seCond in 1.974, it was thought thatthe attempt should not have been mader This, in my vieq is not the lastword on the matter. The IAS Association will do well to ponder on themanner in which other professional groups harre been asserting their

Adtnini strative S tructures

rights and duties, their image and role and t9 "u9lu:

methods for

saieguarding their position under the Constitution' It should set up a

loai"o*ititg of some highly respected IAS officers w-ho have retired

aloig with some serving officers, to act as the custodian of the IAS

tradiiion, image and personality. Self- regulation and self-protection

are widely accepted methods among professionals'

4

Administrative LeadershiP

Most of us in the Orissa administration had always viewed

Sivaraman as a leader, not merely as a senior officer with the usual

trappings of office and authority. Several outside Orissa also thought

of him similarly when he shifted his scene of activities to the Centre'

What are the qiralities that led to this perception? I shall reflect on this

matter in this section.

i-have recently come across two articles in the Economic Times

of Bombay (page 9 of the editions dated 9.8'90 and 13'9'90)' The frstone was written by K.R.KMoorthy with the title "Leadership most

talked,least understood" and the second one was contributedby Harsh

Puri on the same theme, with the title, "Competencies and beyond'"

Theywere mainly concerned with highlighting the differences between

*anaging and leading a business firm. I feel that the points made

therein are equally relevant to public administration. "Management,"

Moorthy writes, "is the art of organising people and things to produce

and achieve objectives. Leadership is the ability to inspire other men

and women to achieve things much greater than they would have done

if they were left to their own devices." He goes on to cite authorities on

business management, such as Peter Drucker, Abraham Zaleznic of

Harvard Business School, Robert Heller of 'Pocket Manager'fame, Dr

Blanchard, Cecil E. Goode, Prof J.E.Adair and Jay Hall' Puri cites

David W. Bennis, who summarised what he called'the competencies

of leadership' as knowing what is wanted' communicating the intention

266 Two Administraton : Inleraction Between ICS and IAS

successfully, empowering others and kn{wing when and how to stay on

9ou1e91change, He goes on to set out fi]ve competencies ofleadershipin a Table which is worth reproducing.

'Table I : The five competedcies of leadership:

1. Vision. The capacrty to create an<[ communicate a compellingvision of a desired state of affairs, (o impart clarity to thisvisionand induce commitment to it.

2. Communication and alignment. The capacity to communicatetheir vision in order to gain the support of multiple constituencies.

3. Persistence, consistency and lbcus. The capacity to maintain theorganisation's direction, especially when the going gets tough.

4. Empowerment. The capacity to credte environments that can tapand harness the energies and abilitieb necessary to bring about thLdesired results.

5. Organisational learning. The capaoity to find ways for the or-ganisation to monitor its own perfofmance, compare results withthe established objectives, have accdss to a continuously evolvingdata-base on which to review past actions and base future ones,and decide how, ifnecessary the organisational structure and keypersonnel must be rearranged or abandoned when faced with newconditions (reviewing and learning ftom one,s own mistakes)".

Puri's article also contains another'I'able showing the differencesbetween the manager and the leader. This is also reproduced below:

"Table II : The manager vis'a-vis the leader

The manager

Vaiues traditionInstinct for survival

The leader

' (a) Concept of Work

Seeks change & new ideasAccepts risk where

opportunities & rewardsaro high

dominates need for risk

267Admini s tra tiv e Le a de rshiP

Delegates cautiouslY

Analytical, methodical

Maintains control over

people and ideas

ReactiveIdentifies totallY

with the organisation

Arise out of necessities

Deeplv embedded in history'and

culture of organisation

Strategy assumes more imPor-

tance than the goal

Focusses on strategl,structure & sYstems

manipulative)Conserves what is

traditional & current

(C) Relations with others

Relates according to their Relates in a more intuit-

roles ive & emPathic waY

Prefers high probability \tiling to risk losing.if

of wiining & low possibi' rewards for winning are

lityoflosing high

Communicatestlosubordinates Communicatesdirectly

indirectlY through the sYstem

Perceived by others as Attracts strong feelings

detactred (& at times of identitY

Delegates freelY

(has faith in PeoPle)IntuitiveEncourages autonomy

ProactiveWorks in the organisation

but can stand outside it

(B) Goals

Arise out of desires

Focus of goals is on the

need to change

Strategy is the means to a

goalFocusses on stYle, staff,

skill, and shared goals

Exerts influence forchange

It is interesting to note that among the writers on management'

Peter Drucker is the only one who, in his own words' is "very reluctant

to talk about qualities of leadership, because I haven't seen any such

thing." He prefers to use ihe terms behaviour and performance of

leadership rather than qualities' He 'thinks that leadership cannot be

268 Two Administratorf : Inleraction Between ICS and IAS

created, promoted, taught or learned, At the most, Drucker concedesthat management can create conditio_ns in which potential leadershipqualities can perform and become effcctive, while adding that it may,under certain circumstances, even stifld potential leadership. On theother hand, the other witers on management assert that studies ofleaders reveal useful information on lea{ership qualities and may feldvaluable guidelines for action by rrruo"g.r, *jiriog to become leaders.

Broadly speaking, three approaches to the problem of leadershipmay be identified: the trait approach, which laysstress on the persona^lcharacteristics of a leader; the behavioural appioach which emphasiseswhat a leader does; the situational or Contingency approach whichspeaks of the features ofthe situation including the times, the work, thecolleagues and subordinates that allowed the ieader to firnction effec_tively. In my view, a combination of the three approaches is necessaryto understand a successful.leader. The Foundation for OrganisationilR esearch and Education (FORE) has recommended that in the Indiansocio-cultural milieu, a manager aspiring to be a leader has to adopt,what is called a 'relational, style with f6ur C's, viz., commitment tomission, credibility, creativity and communication.

Leadership may be defined as "the process of inlluencing thcactions ofan organised group in goal setting and accomplishment, alsoas an influence under which the followers accept willingly the directionand--control of another person or leader." As regiids leadershipqualities, there seems to be a consensus on the following points:

1. A vision and a powerful inner drivd or motivation for personalfulfillment.

Mental, emotional and physical maturity.

Greater intelligence and knowledge than the average of his fol_lowers.

Integrity or the quality which makes people trust him.

Self-assurance and willingness to takg risks.

269Admini s trative Leaders hi P

6, Awareness of the importance of cooperative effort in getting

iftitg. A"* "tathe

need for delegation, good communication and

other social skills.

'1. A oarticipative style of functionin-g often involving subordinates

in iecision-making, and building a team' This inclucles encourage-

ment of subordinates to get ovei the failure syndrome and to take

reasonable risks.

8. Setting an example or practising what is preached'

These qualities are undoubtedlyas essential toleadership in public

administration as in business management' There is, however' one

difference. While in management the leader is often his own boss and

iu. g."ut", freedom of action, in administration he has to reckon with

ii, p"otiti"ut .utters. Under a parliamentary system of government' the

leader of the bureaucracy has io function in accordance with thewishes

of the ministers and can display his leadership qualities, only to the

extent he is allowed to do so by his minister or the head of the ministry'

Thus a new dimension is added to the attributes of administrative

leadership in the shape of harmony or good relations with the political

boss. Greater the confidence the political boss reposes in the ad-

ministrative leader, the greater is his effectiveness' A great deal

depends upon the circumstances of the day and the temperament of

the politicians. We have seen how much Sivaraman could achieve'

when Nabababu and Biju Patnaik throughout thefu chief ministership

and Mahatab in his first two terms, reposed full confidence in him'

Many persons, like me, have been influenced by him and inspired

to share his vision, emulate his example, adopt his methods and above

all, take risks under his protection. As a close observer of Sivaramarl

I can testify that he had all the eight qualities gleaned by management

,".-arch"rs from the lives of leaders of the business world as well as

the capacity to forge reasonably good relations with his political

masters -oit of the time. There were, no doubt, occasions when the

very fact of being the leader of the bureaucracy and having the very

qualities inhereni in that leadership brought him into conflict with the

politicalexecutive.Circumstancesandhisownintrinsicmerithelpedirim surviu" and stage a come-back as an administrative leader' Later'

inNewDelhitoo,IndiraGandhianddifferentagricultureministers

allowed Sivaraman to put his learattainment of cherished national

270 Two Administraton : Ibteraction Between ICS and IAS

Sivaraman has described these

abilities into action for thein the field of agriculture.

as providential. He

f:t"j',-l:'-t::'if I re1s,.r'om rzn-Mav rs; tJiist"rrau.cn Dzs, rhad a leading part in shaping agri policy and helping at theCentre and in the states with a in the policy towards national'growth and increased productivity all lound inih" ,uiJ ,""to.. Wf,"none pauses to analyse how an officer Of the All India $rvice got this

lltl.jilll f": such a long period at a time when there was generalmusrcal cnarrs rn manyposts held bythd senior officers, one cannot butbecome a believer in a predestination 4nd a benign prouid"n"".,,

I tried to obtain the perceptions of as many of the officers aspossible who had the opportunity ofintoracting wiih Sivaraman during

t his long career. A few of the replies I havereceild are enracted below,, with a view to show how they viewed him, even at this distance of time.The anecdotes theyrecall illustrate some of the qualities that made hima leader.

R.K. Rath IAS, had his first contact with Sivaraman as collector,when Sivaraman had come to inspect his district in L962-63. At first hewas apprehensive and resentful of the visit but became his avid fol-lower. Says Rath: ,'Thereafter I received such affection and guidanceas I have not received from any other civil servant till today. Instead oftrying to be left alone, I looked forward to his visits to the district whichbecame increasingly frequent. It was patent to me that the widely heldview that Shri Sivaraman was a perso{r of fixed affections and an_tipathies was wrong and that theie were very few people who wereequally prepared to change their opinions u.ioon u, they found thattheir earlier opinions were not based on correct information.

"I also found a certain restlessness in him __ restlessness for change,for growth, for alleviation of poverty. This restlessness was accom-panied by, a very active imagination which relished new ideas andexplored new areas where it could play a creative role. If he foundsomeone who had the stirrings. of restlbssness, he was immediatelydrawn to him. If someone carried an adverse ieport against such aperson,the report usually elicited severe disapprobation ind its carrierwas told to mind his own business and, if posiible, emulate the person

Adm ini s t rativ e L e a de rs h i P271

he was reporting against. There were several difficult situations in

*fri"t I "".t"ir$ would have acted differently zind less satisfactorily

had I not received his guidance, support and encouragement' Whether

it *u, ugri"ultural development, or law and order,-o.r.work connected

*ith r"u?t u" udministration, onewas sure of his unfailing support' This

guu" on" "on.iderable

freedom of action since one knew that he would

i"u", b" let down for anything he did in good faith'" Recounting an

incident in which Sivaraman, as agriculture secretary in the Centre

staked his job for foreign exchange allocation for fertiliser input in a

telephonic conversation with Morarji Desai, the finance minister, he

adds: "I happened to be present in Shri Sivaraman's toom when this

conversati;; took place. Since then, I have put in about twenty-five

years'further service and have seen how, duringthese years, an increas-

ing number of civil servants have come to be possessed by the desire

to*hold on to coveted posts and to avoid, at all costs, a transfer from

Delhi or state capitals. Shri Sivaraman's example is fast becoming

irrelevant in the emerging civil service culture, but it reaffirms the truth

of the Upanishadic dictum, tena tyaktenabhuniithalt (itisrelished after

it is renounced). Truth is not necessarily synonymous with majority

attitude or majority conduct. It is greater and sometimes, different'"

Rath became secretary to Government of India in 1990'

Gian Chand IAS, who as deputy secretary worked closely with

Sivaraman in the preparation of the memorandum to the Finance

Commission 1956, as joint secretary in connection with the Paradeep

Project in 1961--64, and as managing dLector, National Seeds Corpora-

tion in 1"967-71 writes: "He was not averse to deal directly with officers

atjunior level once he was convinced that it was the effective level and

it will be no avail to involve officers at higher level, especially, when

important mattars concerning the State were involved"' this was

another technique Mr Sivaraman employed by which he motivated the

'workers' amongst the officers, while leaving the 'non-workers to

pursue other tasks. In other words, he was able to discriminate between

iasks which could be left to'routine handling' and those which could

not be so left. The latter tasks had to be accomplished by encouraging

handpicked officers to deal directly with them, cutting across layers of

official hierarchy, thus lending a measure of elasticity, to an otherwise

rigid and 'non-performing' administrative set-up". Gian Chand's

272

repute,

Beween ICS and IAS

reflections on Sivaraman's role in thle paradeep project have beenrecorded in an earlier chapter. His m:lin point is it ",

*.lfr;i" *,,,",.-,-r eLUr ucq ur an eanter chapter. His m:fin point is that while Sivaramanshared the vision of Biju

-patnaik, he dii not .".uio'u ui.ionu.y lutreduced it successfully to administrqtive ,u.rc *Jt"pi the entireoperation wirhin the limits of public pccountabilirt. i;;* iffrance

LO,"l ln: "1"t sngineer, paradeep, in his anxiety to sieea up themid*ealoadings ofJapanese ships, proposed to tr'ib" tii captains ofthose ships and obtained th" appiouut oi nilu, Sivaraman resubmittedthe file with the following note: "I am, sure when Chief Minister ap_

319v.ed the prop_gsal he would have done it by way of a joke. Chief

Yini:t:r may see.,' Biju saw and returrred the iile with his sigrature,signifying agreement with Sivaramaq. Thus the leader of the ad_ministration prevented the incipient public criticism from becomingstormy and dangerous. Referring to the spread of the high yieldin!varieties programme in the states, Gian Chand speaks of Sivaraman,susual knack ofpassing on his vision and enthusiasm to all those whosecooperation was necessary for achieving the task which he had set outto achieve. Gian Chand retired as chief secretary Orissa.

- GN.Mitra, who began as fisherie$ inspector in Orissa on a lowsalary but had a meteoric rise to the position of a consultant to FAO,after holding positions such as director offisheries, orissa and fisheriesadviser to the central government was no respecter of persons on thebasis of position and was often frank to a fault. Lookine back on hisassociation with Sivaraman since the fifties, he recalls h-ow the latterhad the ability of grasping the technical details of a developmentprogramme like the inland fisheries development through grampanchayats and provided administrative leadeiship as commisioner,northern division. He also speaks of the circumspection and readinessto reverse orders that he might have passed earlier on incompleteinformation. As regards the second aspect, he cites the examples ofBepin Mahanty of Orissa and Dr Mondhl of Delhi who were about tobecome undeserved victims of vigilance cases. Dr Mondal, Mitra isproud to add, has since blossomed into a scientist of international

V.S.Mathews IAS, who was known for his flamboyant and osten_tatious style ofliving and had to leave the post of chief secretary, Orissain 1975 under unpleasant circumstances, describes Sivaraman as ,,the

273Admfutistrative LeadershiP

most remembered chief secretary since Independence" and adds: "I

came to know of his many exceptional qualities of intellect' leadership

-J-.ia"fv ""t"owledgei administrative ability rather belatedly' little

bv littl" aid ou"r a long period of time' Thiswas because Mr Sivaraman

iJ".r"ntiuffv u .imple-rran with a simple style of living and not impres-

sive or flasn'y at firsi sight, and not given to tomtoming his achievements'

"Uiti i". o. ii.ptay of fower. Hewas a calm and silent operator greeting

y"" *i n u .*i1", *hi"h *ould disappear if you were wrong' While he

iuu, f"ut"a and respected by his junior colleagues, he- was readily

accepted as a guide and mentor. Brashness and rude behaviow were

alien to his basic nature."

K. Ramamurthy IAS, who retired as chief secretary, Orissa and

presided over the Orissa University of Agriculture,and Technology'^Bhuburr".*u,

after retirement considers Sivaraman his guru' He says:

"I have tried to follow in hii steps in administration as far as possibie'

I consider him as one of the best administrators India has produced'

He is also a man with a large heart and sympathy' He would try his

utmost to help whosoever approached him. He was a great executive

who could command the loyalty of his officers by setting a good

example personally and also solving the personal problems of officers

as far as possible."

B.B.Nag a deputy collector who worked as civil supplies officer

and deputy secretary before his promotion to IAS recalls the con-

ference of CSOs held in 1948 soon after the merger of princely states

in Orissa. When the proceedings of the conference was sent to Gover-

nor Asaf Ali, he returned it, with satirical and caustic remarks in the

margin while hailing it as "one ofthe best recorded proceedings I have

com-e across." Against the decision that the CSO should personally

supervise procurement of paddy and rice for ensuring fair practices by

the purchasing agents in regard to price,quality etc', the governor

notei, "How is this possible when CSOs move about in purchasing

agenti' cars!" Against the distribution of textile material like dhoties

aid sarees in the scarcity pockets ofrural areas, there was an exclama-

tion, "Only unmarketable stuff, I guess!" Sivaraman rose to the defence

of his subordinates and submitted a detailed note highlighting the

inherent deficiencies ofthe system such as the meagre pay of CSOs and

the refusal of government to sanction them car advances' He argued

274 Two Administraton i Interaction Between ICS and IAS

that the instances in which CSOs usEd the cars of purchasing agentswere few and occurred mostlyin coillection with _u[iog1..ung"."nr,for the visits of ministers and the goferno,

"t sfro.t no?i"" and that it

was unfair to make insinuations withoirt establishing thalundue favourshad in fact been given in return for tfre use of the"c'ars. The oote alsocontained an analysis of corrup_tion hnd suggested ways of dealingwith it. It also pleaded that all these issues siould b. goo" into if thedepartment was not to get the impres$ion that merit did-not necessarilyIead to. recognition. The governor in reply assured him that he recog-nised the excellence of the work done in the conference but *u. ojysounding 'a word of caution' which ,coming from above, he saij,'should not be received with impulse and eriotion., This shows thelengths to which Sivaraman could go ii" support of his staff and inspireconfidence and loyalty in them.

Nag also remembers with fondne$s Sivaraman,s exertions to makehim comfortable on his sudden transfer as textile liaision officer inAhmedabad in 1947, despite his initial reluctance, and his fatherlyadmonition: "Look, as I can see, you have taken service as your profes_sion, having nothing else to fall back on. That being so, you musfalwaystry to excel others in the profession, as a carpenter must excel othercarpenters in his skill and performatrce il he is to prosper.,, Thesewords, Nag adds, "kept ringing itr my ears as I drove back to my officearrd later,.intermittently, have stirred me time and again." The themethat every serviceman must have ptide of profesiion used to berepeated by Sivaraman to one and all who had occasion to work withhim.

K.S.Raghupati IAS, who retired a8 labour secretary, Governmentof India, recalls what an American Sepretary of State for Agriculturesaid, during his visit to London in the sixties when Raghupati waseconomic minister in the High Comrrlissioner,s offrce. He remarkedthat I'few administrators have got the best out of scientists and fewscientists have got the best out of administrators and it is a meqsure ofthe two men that Sivaraman and Swamlnathan brought 4bout what hascome to be called the Green Revolrttion." Himself an engineeringgraduate, Raghupati also refers to Sivfiaman's attention to detail, hismastery ofthe technical aspects ofirrigation and his method of traininsthrough cross- examination, all of which had made a deep and lastini

275A dmin i s t r ativ e L e ade rs h iP

impression on him when he was collector under him' Speaking of

Sivaraman's timely presence and assistance at the time of his mother's

4".,i ",

Sambalpui, Raghupati says how personal and comforting it

;;.. H" adds: "ti it is hi; ability and acumen which one,admires' it is

ili.'f",""*fy ft"man side which binds you to him'"-This is a tribute to

Jiuuru-urrr"h.rmane qualities, an important ingredient of leadership'

K. Srinivasan IAS, who came into contact with Sivaraman as an

assistant collector reports how he and two ofhis fellow-juniors attend-

ing u "orrf"."n"e

at luri were entertained at lunch at the posh res-

tairant in the BNR hotel for three days by Sivaraman' who found them

gruui uiog ,o*urds a cheap roadside eating place as they did not have

I*rgU ti.*v ,o go elsewhe,e. Sivaraman madb it all appear natural'

while"acting i"n"iout and special' This human side of Sivaraman's

"iuru"t". c-oripelled admiraiion and loyalty, a leadership quality in-

deed.Srinivasanalsoremembershowlaterhe,ameredeputysecretarywas picked specially by Sivaraman for the work in connection with the

finarrce Co-nission, in the same manner as Gian Chand on an earlier

occasion. His memories of this association are full of opportunities for

learning, encouragement and gratitude to the leader' He fondly

."..-6"r. unother instance when Sivaraman congratulated him after

their joint meeting with the Planning Commission on Paradeep Project

where apparently-srinivasan's report was severely criticised by Trivedi'

me-bei of the'Co-mission presiding over it' Sivaraman had the

ferspicacity and foresight to see that the member was criticising the

i"port fot ihe sake of fo.- only and was really asking his aides to

reivrite it somewhat differently to the Centre's requirements'

T.N.Saraf who was appointed to the IAS from among the ex-state

personnel and rose to be a close aide and confidant of the director

general, FAO writes that although at first Sivaraman was an enigma to

f,im it soonbecame clear that "Mr Sivaramanwanted you to workhard'

do yourjob well, and ifyou did not, he made sure your were miserable'

humiliaied and shouted at. But ifyou did a goodjob he would give you

one of his rare smiles, help you and listen to you' His motive forces

weraprobity and hard *oii. Off"t the best advice after a thorough

examination of the problem and when a decision is taken' impiement

ir*irh uigo.r. *d spied. Working under him mea'tf an education which

no traini-ng course could give you. Even a whiff of suspicion about the

276 Two Administrators :,Interaction Between ICS and IAS

integrity of an offioer would seal his {oom as far as Mr shivaraman wasconc-erned. He represented the hfuihest ideals of civil service.,, Herecalls with pride how Sivaraman'[ address to FAO council wasreceived and how Sivaraman displapd all his clarm and friendlinessat the party he gave in his honour on that occasion. He arso carries withhim the unforgettable scene when Sivar"-na was stunned with griefand shock at the death of his wife ou the train to Delhi in May 1965."You could see," he adds "how humanhe was under that grim and rougheKerior."

Justice B.C.Das who was law secretary during Sivaraman's tenureas chief secretary writes: 'An ideal administrator, so rare these days,who alone could effectively counter politically motivated policies andactions of ministers and politicians, likely to. result in serious mal-ad_ministration, even at the risk of incurring their grave displeasure. Ananxiety to dojusticeand a clearjudicial bent of mind were often evidentin many of his judgernents which could offer a model to manv a memberof the higher judiciary."

N.R.Panigrahi and Behuria of thp Orissa agricultural service whoworked closely with Sivaraman and ultimately retired as directors ofagriculture say that "the foundation of scientific agriculture was laid byMr B.Sivaraman in the year 1954 with the organisation of a smallagriculture research station at Sambalpur where the concept of multi-disciplinary appliedresearch and adaptive trials in farmers'fields weredeveloped. The findings of the researich station along with the resultsof verification trials in farmer's fields formed the basis of professionalagricultural eKension in 1958 when water was released in Hirakudcanals". Thanks to his foresight and administrative support, they say, itwas possible to introduce summer rico in the Hirakud avacut success-fully, undertake multiplication of potato seeds in Orissa" and initiateclonal propagation of rice, all innovations in the true sense ofthe term.They gratefully acknowledge the reolganisation of the directorate ofagriculture, the appointment of a Tephnical pay Committee and theimplementation of its recommendations, all of which were carried outunder his leadership.

S.M.Patnaik IAS, who retired as clrief secretary, Orissa recalls twoincidents which illustrate Sivaramanls administrative leadership. In

277Adntinis trative Le ade rslti P

one, Sivaraman is reported to have travelled by bus from Cuttack to

Bhubaneswar and suggested, on the basis of this experience' some

i*f.-"-"no in the ilcketing system' In another, he stood firmly by

Painaik when his minister, *o.k u"d transport encouraged the chief

;;;";t (R&B) to commit several irregularities in the purchase of

ma"terials and spend far in excess of the budget allocation' The chief

"ogi.r"-, *u. iut under disciplinary proceedings. for these mis-

d"ir"arrour.. Tire particular minister sulked for a while, insisting on

the transfer of Palnaik, but was obliged to swallow his pride and

Patnaik was transferred only after some months, in the normal course'

The minister was also dropped at about the same time'

Dr S.K.Rau IAS, speaks of a flying visit of Sivaraman to

Mayurbhanj during his collectorship, when a casual mention of the

cloiure of the Rairangpur mine and the consequent unemployment

among the tribals started Sivaraman on a mission of permanent arran-

gemeits for the benefit ofthe adivasis. This, Rau believes, was the seed

from which the programme of integrated tribal development project

was born,

Finally, there is the little-known fact that Sivaraman provided the

theme and inspiration to G.N.Mohanty, a deputy collector who besides

earning promotion to IAS had, in later life, received the Bharatiya

Gyana Pith award for his Oriya nanel, Mati Matial as well as Padma

Bhushan for his literary endeavours over a long period and for focuss-

ing attention on the rural folk, particularly the tribalsof Orissa' Mahan-

tylkept a verbatim record of his conversation with Sivaraman on

iq.+.iSSg and started writirrg Mati Matial soon after' He describes the

book as "a peculiar case of a bureaucrat making his contribution to the

creation of a creative literary work'"

So much for the perceptions of the ofhcers of Orissa who worked

under the leadership of Sivalaman. The impression ofothers regarding

his tenure as agriculture secretary and cabinet secretary at the Centre

have been recorded in an earlier chapter. What Indira Gandhi thought

of him was also noted. Now to complete the picture, I may refer to the

perception of a politician of Orissa who was not in power during

Sivaraman's tenuie in the state. Banka Behary Das, MLA says that he

relied for developmental works in his constituency and outside on

278 Two Adntinistrators : Ihteraction Between ICS and IAS

Sivaraman more than on ministers thdugh he had good relations withthem. He continues: ,'I do not rememiei a single in-stance in which hefailed me." Of his vision and plan of acfion, he-writes: ,,He had a deepinsight into the problems of the statb, ranging from agriculture totribals. I remember in the late fiftids, he th-ought of every grampanchayat having its grain gola wher0 agriculturirt.

"un store their

paddy, sell them and draw from them fn time of need. It was nore orless a substitute to the conventional exploitative system of moneylending and paddy lending of the wellto-do vested interests. In evervpanchayat corrugated-roofed pucca holrses cameup, where grain golasand panchayat offices were located. It lwas an ideal scheme and is thepanacea even now. But there was no fQllow_up action afterwards andthe system collapsed after him." The reference is to the cooperativegrain gola scheme first initiated in Bdlangir by me as collector andextended to other districts with suitable modifications by Sivaraman inhis capacity first as secretary, gram panchayat departm;nt and later aschief secretary- curn-development commissioner.

Like all leaders, .Sivaraman had his share of detractors. Somethought that he was a man of strong likes and dislikes, vindictivetowards those whom he did not like and blind to certain favourites whoalways surrounded him. L.K.Mohanti artd S.N.Sharmawere often citedto illustrate the last point. Mohanti became the AArc norl of somecollectors in the fifties, when as special officer, minor irrigation at-tached to the office of commissioner, northern division, he used to tourthe districts intensively in connection with the starting of new projectsand supervision of the ongoing ones. flis tour notes were, no doubt,informative and useful. Unfortunately, his manner was somewhat over-bearing and he conveyed the impressiqn of being a confidant of thecommissioner, which did not endear hir4 to some collectors. There wasthus a feeling that he was one of Sivaramah's blind spots. I personallyfound his visits useful. The junior offiCers, SDOs in particular, whowere in charge ofthe projects in the field, generally had a good rapportwith him. He had a way with the engineering personnel and got themto do the work according to schedule, altrhough their numbers fell shortof the workload. Somehow there was a feeling among some politicalcircles also that Mohanti did not deservd the position he enjoyed-as theclose aide of Sivaraman and attemptp were made intermittently to put

A dmi n i s trativ e Le ade r s hiP

anendtohisservice.ButMohanticontinuedlargelyduetothesupportJ Siu.r"--. As additional development commissioner' I had the

b"rr"fit of hit assistance in his capacity as deputy development com-

missioner. Taking all aspects into account, I am inclined to think that

Mohanti had mo.i to hi- th- .et the eye, and should not be dismissed

as a mere favourite.

In the case of S.N.Sharma, an ex-state officer, the main complaint

was that he behaved like a spy, was objectionable on occasions and that

his contribution as additional secretary in charge of Organisation and

Methods was not such as to earn him the support of Sivaraman' In my

view, there is some truth in this assessment but considering the

psyciological value of Sharma's closeness to Sivaraman in the larger

"na""uo* for an emotional merger of the ex-state personnel in the

mainstream of Orissa administration and his services in regard to

gathering of administrative intelligence, Sharma shbuld not be dis'

missed ai a case of outright favouritism. I can vouchsafe for Sharma's

ability to provide administrative intelligence from my experience' Long

after iis ietirement, he came to meet me out of the blue one day, to tell

me about the machinations of a group of disgruntled officers planning

a writ against me in the High Court' This enabled me to take imlnediate

action ind thwart their dpsigns. This happened in 1973 whjrn I was chief

secretaly, Orissa. I mustLadd that the leader in Sivaramari saw to it that

the activities of these favourites did not lead him to be unjust to others

or to abandon his overriding sense of impartiality'

I must also place on record the single instance, where Sivaraman

was accused of vindictiveness. This came to my notice, in response to

my call in the Oriya press for anecdotes on his administration; Bishnu

Ciaran Mohanty of the Orissa Administrativ€ Service has attributed

the long delay in his promotion to the rank of additional district

magistr;te, his failure to get into the IAS tbrough the special recruit'

ment examination of 1956, the delayed disposal of a disciplinary case

against him and his suspension for a time, to Sivaraman's vindictive

at-titude. Sivaraman, Member(CT), in his capacity as registrar of com-

panies, had filed a criminal case before B'C.Mohanty, then a first class

magistrate at Titlagarh, district Bolangir. Mohanty found the accused

guiity and fined him. Soon after, Sivaraman is reported to have sent for

fo" cat" .""o.ds in his capacity as member, board of revenue, perhaps

280 Two Administrators : hiteraction Between ICS and IAS

in exercise of his power to oversee the courts in his jurisdiction.Mohanty, who thought the demand for case records might have arisenfrom Sivaraman's feeling that the lrunishment wai inadequate,declined to part with them and cited i provision in the Orissa HighCourt rules and circular orders in The relevant Rule uEfrowned on the transfer ofjudicial to other officers or publicfunctionaries, except superior j authorities or in accordancewith the orders of a civil court under thb civil procedure code. There-upon, Mohantysays, Sivaraman moved the High Court for amendment,and obtained the case records after thie rule was dulv amended. ex-empting mernber, board of revenue the provisions of the rule.About L8 months later, Mohanty came to be placed under disciplinaryproceedings by order of Sivaraman on a charge of exceeding hisauthoril.y and committing an iautnorrty and committing an irregulariff in the matter of bail for a richmine owner. He was also suspended. This case, which started in June

damaging consequences of the departmental enquiry.

I put all these facts to Sivaraman while witing this book. Hiscomments are that he was not able to re0all this officer at this distanceof time and that he would certainly have remembered him ilindeed hehad such thoughts about him. He added that at rhat particular time,the control on the Orissa Administrative Service had perhaps beentransferred frora the board of revenue to the secretariat, where therewas no dearth of intrigues. I too tried hard to recall the case as I wascollector, Bolangir till December 1953, a few months before the startof the disciplinary case. All that I couldt recollect was that during mytime, an anonymous petition setting out some specific facts against

A dmi ni s t rativ e Le a de r s hiP 281

Mohanty came to me for enquiry and the criminal bail case was one of

the ite;. Before penning ihese words, I discussed this matter with

Mohanty, In retrospect, he thought that he made a mistake in not seeing

Sivaraman p.ttottilly to represent his case, as he was advised by the

officers in tle commissionei's office that such a representation would

be of no avail. He conceded that this episode might be in the nature of

an aberration on the part of Sivaraman and that he was aware of

instances in which he had relented on personal hearing' I could do no

more to ascertain the truth as the relevant records had been destroyed

in the meantime according to rules. The above case apart, the general

impression about Sivaraman which was current at the time has been

apily summarised by Banka Behary Das in the following words:

"At that time many officers used to tell me that Sivaraman was very

vindictive to subordinates. Whomever he liked, he saved them or

connived at their faults, but to others he was rough and vindictive'

Generally this is said about all knowledgeable and efficient men of

authority. I cannot vouchsafe this talk about his weakness ofcharacter'

his strong likes and dislikes' To me this canard might have been spread

by inefficient and delinquent officers who were afraid of him'"

That Sivaraman the leader evoked fear and respect is acknow-

ledged by one and all. Mitra, the director of fisheries remembers he

was ooce witrress to a block development officer fainting at an annual

conference in Puri, held to review the progress of development

programmes in the presence of panchayati laj representatives. About

Sivaiamatt's role at the conference, he says that it was not good tactics

to evoke such fear in the officers. But, he adds, "I must san in spite of

the fear, all good officers looked upon Shri Sivaraman as a sort of god'"

Once again, this aspect has been succinctly summed up by Banka

Beharybas as follows: "His knowledge about matters and men of

Orissa was so deep and thorough, that nobody, whcther in politics or

administration, could either mislead or deceive him. That was the main

reason why his personality was so awe-inspiring' His efficiency struck

terror in the hearts of delinquent offrcers who were afraid of being

found out. Nonetheless, he was respected by them because he was

soft-spoken and gentle." Many have said that although they had been

taken. to task for their failures and inadequacies, and shouted at, he

had not carried those impressions into their annual confideatial

282 Two Administroton : Intdraction Between ICS and IAS

reports, once he was convinced that thef were sincere in the perfor-mance of their duties and re-sponsive toihis admonitions. It was onlythe incorrigible and the unreformed that invited his wrath. And that iswhat it should be, for an administrative liader.

J

Administrators and Policy'making

On administrators and policy, two general statements are often

made. One is that policy is the domain of the ministers or political

masters while implementation is the province of the administrator' The

other is that by and large, government policies are sound but theirimplementation is defective. These statements are apt to give the

impression that policy- making and policy implementation are water-

tight compartments and are managed by different sets of persons. Inmy view this impression is wrong and the statements referred to are not

complete truths. The administrator, I have found in my experience, has

a lot to do with the making of policy and the political masters do

participate in the implementation of policy. It is not unusual that the

political executive pleads bad advice when its policy is criticised as

unsound. Similarly, the administrator speaks of political interference

when he isblamed for deficiencies in the implementation of policy. The

truth, of course, is that the administrator and his political master have

to work together closely and in a cooperative spirit in respect of both

matters.

Policy may be defined as a course of state action selected for the

attainment of specific and predetermined objectives of public interest.

Drawing on my experience, I would identify the following as the

essential ingredients of policy:

284 Two Administraton : Inleraction Between ICS and IAS

(a) The objectives to be attained must be spelt out at the very start inthe clearest possible terms. Usuallj they are nnultiple ani closelyinterlinked.

(b) The objectives must be clearly seen to be in the public interest orto do the maximum good to the maiimum numbir of people.

(c) The_ details of action by diffe rent padts of the state machinery mustbe delineated without any ambiguity.

(d) The parts to be played by the people in general or persons con-cerned must be identified and corlveyed to them appropriatelythrough a public education progradme.

(e) The course or courses of action ghould be chosen onlv afterconsidering the available alternativgs.

(f) The alternatives must be evaluated with reference to relevanttechno-economic considerations.

(g) Administrative feasibility or the ability of the srate machinery tomeet the challenges of the proposed actions adequately must beassessed.

(h) Adequate financial provisions must be ensured.

(i) The legal framework in which all state action has to be staged mustbe eiamined as to its adequacy and strengthened if necessary.

O The personnel to be involved in implementation has to be orientedto the objectives and the actions through appropriate training.

The above ten factors make all the difference between a pious wishand a public policy and the administrator has an important role inperfecting these factors.

Broadly speaking, it is in regard to (a), (b), (d) and (e) that rhepolitical executive has a majbr part !o play. Even here, the ad-rninistrator has the responsibility for supplying the basic facts, data andalternatives. As item (a) is largely related to the election manifesto, thepolitical party in power is rather charf of considering alternativessuggested by the administrator under itetr (e) with regard to items (f),G), (h), and (i). It then becomes the dury of the administrator to

285Administmton and P o licY-making

professionally and tactfully persuade the .no\i1l executive' in tbe

;;;;f ,h" Lt;"r public inteiest, to apply its mind to those important

aspects.

I may illustrate with two incidents in my career' When Biju Patnaik

b.";Jt#-;i"ir,er, orissa in 1961 after a thumping victory in the

Iria-t"i- pon, n" said ie had promised tc provide piped water supply

t" Ai "iU"g*.'fft"

promise was made apparently on the spur of the

-"*"ti "T ""

AedLn meeting, to attract thewomen's votes in an area

*i"r" *orn"o *"re required to trudge long distances to carry drinking

*ui.r. Oo "*.ination,

I found that the average population of a village

io O.ir*u was less than 500 or 100 houses, that several were not likely

to have a reliable source of pure drinking water at a reasonable distauce

and that the village community would not be able tolook after the

-J*"rr"rr"" urrd-bea, the coit of piped water supply' I therefore

lr*;* to limit the plan to vi[ages with a population of 1-000 and

abfie and explore other ways of providing protected water to smaller

uiUug"t. The CM accepted this suggestion and a viable policy was

framed.

In another instance, relating to the same chief minister's electoral

promise to establish industries in every gram panchayat' I had to evolve

il;;;;;y;t."miti industries programme in an attemlt to reconcile

ii"'uinoui".rtent with the demographic and technical realities. I

moved the locale from the gram panchayat, a small agglomeration' to

ti" p^*tt"yut samiti, the next higher grouping' Further' as it was not

practicablc to take up modern industries in every panchayat samiti

i"t-"Ji","fv, u ph".iog schedule and a selection criteria had to be

established. These were appropriatelylinked to the performance of the

samitis and their componenbfthe gram panchayats in selected fields'

thus introducing an element of competition among the representative

institutions of the PeoPle'

The above examples show that facts are stubborn and cannot be

wished away in the name of manifesto or the aroused aspirations of the

feople. While the identifrcation of policy objectives is the legitimate

loolrn of the political executive, the administrator,must reconcile

ii.* *ittt t"ufities of all kinds -- social, economig technical - so that

a workable pblicY is evolved.

286 Two Adtninistrators : Ihteraction Between ICS and IAS

Facts are gathered in many wayJs: observation in the ordinarycourse of b xiness; special enquiri..; dltu buok, ,och as census reports

l11Tli"*t :"-ple survey reprots; sp]ecial sample surveys; and com-

1,1:_"t- "lp""ited for the purpose. Sot"e committees are required to

go_ o:yonct tact-trnding 6d snggest pllicies. The administraLr has arole- in all these methods, in varying degrees. For example, the firstmethod, observation, puts the grea{ei responsibilif on the ad-ministrator, while the last, the com{ittee, ."y *nJro him least,except when he is made its secretary.

I have related in an earlier chapteh how the kendu leaf policy ofOrissa originated from my field obsirvdtion as collector while on tourand how the cooperative grain gola scieme was born of a discussionwith the village folk in order to help augment agricultural productionand strengthen the gram panchayats. th both Jases, the support andencouragement of higher adminis{rators like Sivaraman andVenkatappaiah and their persuasive skiils with policy- makers, politicaland otherwise helped convert my ideas iSto viable policies. Sivaraman,sown career has many instances when the seeds ol national policies inthe field of agriculture were sown by tho administrator rather than thepolitical masters. His book, Bitter Swent records a number of them.The main lesson I wish to convey is fi4f admin.istlators should not belulled into believing that policy-making h an esoteric exercise outsidetheir province.

Broadly speaking, public policies may be divided into twocategories, single subject policies and tmbrella policies. policies onforestry and personnel are examples of the firsi category while in-dustrial policy and that concerning scidnce and technJlogy illustratethe second. In the second category beparate and self_containedguidelines have to be evolved on the different subjects covered by theumbrella. This does not mean that single subjecipolicies are simpleaffairs and that the problems of linkagcs with other subjects do notexist. They do exist but are significantly less

I wish to reflect oo personnel poli$, as the administrator has aspecial responsibility in this area, both dt the stage of formulation aswell as implementation. A sound pertsonnel policy must includeguidelines on recruitment, training pronxotion,iranifer, grievances,

:.

I

Administrators attd P oliqt-mading 287

discipline, rewards, punishments and superannuation' Above all' it

-uri"onfot^ to the fotcy on organisation or administrative structure

and contribute to the promotion of harmony and cooperation' or in

other words, coordination among the different parts of the structure'

The administrator should ,"*".b"t that personnel work is in the

natureofhumanresourcesdevelopmentandmustaimatheighteningmotivation, morale and job satisfaction' It should be obvious that the

senior administrators have more to answer in these areas than the

political executive' Sivaraman's contributions as chief secretary' Orissa'and

as cabinet secretary will always be remembered, particularly the

manner in which the ex-state services were fused with the Orissa

services and the state chief secretaries were made equal to the

secretaries of Government of India.

The importance of an administrator's role in explaining to the

people the implications ofpolicy and in training the concerned person-

,r"l in its intricacies cannot be over-emphasied' Several policies have

failed due to inadequate attention to these aspects at the beginning'

Usually, policies are expressed in general terms, leaving the details to

be *oik"d out later. They also have multiple objectives and the inter-

relations between them may not be obvious. Hence the need for special

efforts to educate the public and orient the personnel' Equally impor-

tant is the legal underpinning' The administrator must remember that

under a writien Constitution such as ours, legal back-up is essential for

the success of most policies, as they are likely to interfere with the

fundamental rights of citizens and as misapprehensions have to be

prevented. Sivaraman went to great lengths in putting these precepts

into practice. The conference o f 1962in Orissa on the improvement of

administration and the emphasis on farmers' training programmes

under the high yielding varieties progtamme are some examples'

I have tried to follow iri'his footsteps, to the best of my ability'

INDEX

A

Accountant General, BombaY

Acharya, BinaYak

Adams, Dale

Administrative Reforms Commission

Agarwal, L.P., DrAgricultural Credit Deptt.

Agricultural Credit Fund (L'T.O')

Agricultural Credit (Stabilisation) Funds

Agncultural Development Barrk of India

Asicultural RefinancE & Development

Corporation (ARDC)

Ahmed, Fakhruddin AliAkadasi Pradhan Vs State of Orissa

Akali Dal

All-India Administrative Service

All-India Administrative Training School

All-India Debt & Investment Survey

All-India Institute of Medical Sciences

All-India Rural Credit Sutvey Committee

American Bureau of ShiPPing

,dmerican CooPerative l-€aguc

Index

5

L74

250

L97-20p,256

73

109

109,26LW,2M107, 108

103, 106-8,247,250

75,L911.84

L95

4r7

' 9, 15

zfi73

33,193,U59L,92

-58

2n

Americaa Oit Co (AMOCO)Atoan If f^^jAnand, J.C., Capt.

Antulay,A.R.Apollo Hospitals

ArjunaArmstron& William, SirAsaf Ali (Governor)

Asian Pacific Regional AgriculturalCooperative Asoociation (APRACA)

Asian Productivity Organisation (ApO)Asoka

Assam

Atomic Energr Commission

Auditor-General

Bailey, F.G.

Bakhi,A.Bankers' Insn. of Rural DevelopmcntBalasore

Balwantrai Mehta CommitteeBamra

Barren,r,A,K,

Bechtel CorporationBehuria

Bengal Paper MillsBerhampur

Bhabua

Bhambri C.P. ProfBhanupratap Singh

Bharatiya Jana Sangh

Bharatiya Lok DalBhubaneswar

Bhutto, Z.A.

Beween ICS and MS

(BrRD)

63

9ltM,?n6

103

zLz

220

L3,?34,273

t0746,55,59

155

95

74

5

152,r75

r921@

?i,r53z3g

160, 16L

fr,963

n6,x

L9,Ln,$0L:26

L87

r07

195, 196

' L73,t7429,x7

LO7

Index

Birla House

Birla K.I(Birmaharajpur

Biswal, G.B. DrBiswanath Das

Bitter Sweet

Board of Revenue

Bolangir

Bontbay Chronicle

Bonai

Boothalingam, S.

Bose, Rajkrishna

Bose, Subhas Chandra

Buddha, Lord

Bureau of Statistics & Economics

293

1.1, 190

L92

29

38

t50, 157-8, L7r-2

2r, 48, 12i, 733, 136, Lfi , 224

1i2134,236

L6, 20, 24, 25, n, 29, 30, L6L, 162

r6t185

4L

158

155

43

cCabinet Secretary

Calcutta

Calcutta High Court

Central Bureau of Investigation (CBI)

Central Pay Commission, Fifth

Central Silk Board

Central Social Welfare Board

Chiikravarty, P.K DrChakravarthy, Sukhomoy, DrChand Ram

Charan Singh

Charat Ram

Chauduri, Gopabandhu

Chaudhuri, Malati

Chaudhuri, Nabakrushna I8,n35,37,L30-2,I35,15L,157,159,L62-3, t69"70, 175-8, 180-1, r83, 246.

T4O.L

18,Ln55

n, 41, 169, L',lt, !79TM

146

56

64,65,75

2W

97

107-8, 194

59

t64157-8,164

Chaudhury, Sachin

Chavan, Y.B.

CS & Dev. Com

Chowdhury, Kamala, DrCIMMYTCIRTCochin Shipyard

Code of Conduct for International ShippingCoffee Board

Columbia University

Comal S.K.

Commissioner, Northern Division/Communist Party of India (CPfCommunist Party of India (Marxist)

Communist Party of India (ML)Community Development Programme

Congress, Indian National 39,L49,L55,158, 163-4, 168-9,

t75-6, L95-6,203,205Congress Socialist Party L51

Cooperative Land Development Banks 226

L7L

t32,t3+5

6r40

.9593

87,92,93

rl9s6,2?5;23r,2s7

94

129-32 & 162

72,75,8?.172-3

L72-3,r95

195

237,24I,,243

Coromandel Fertilisers

CRAFICARDCrash Scheme for Rural Employment (CSRE)

Cummings, Ralph W.Curzon. Lord

62

r07,t$-s,24775,L94

r39

153

lr, 14, 16, m, 29, 79, 160, 162, L71,

t34251

41.,13I-3,277,281

276

t54-5, L57

190

154

Cuttack

D

DaitariDandakaranya AuthorityDas, Banka Behari

Das, B.C.

Das, Gopabandhu

Dasgupta, K.G. l

Das, Hariha'

Indac

Das, Madushudhan

Das, Mahapatra H. Dr

Das Munshi P.R.

Das, Nilakantha

Das, P.K.

Dash, G.C.

Dash, Sreeramachandra, Prof

DCL Finance Ltd

Delhi Cloth Mills (DCM)

Delhi Transport CorPoration

Dey, S.K.

Desai, M.J.

Desai" Morarji

Deshmukh, C.D.

Dhar, P.N. Prof

Dharam Vira

Dhenkanal

Dhillon, G.S.

Dikshit. Umashankar

District Industries Centre (DIC)

District Rural Development Agency (DRDA)

Dolly Senapati

. Dravida Munnetra Kazhagam (DMK)

Dredging Corporation of India

Drucker, Peter

Drugs Prices (D&C) Order

Drought Prone Areas Prograrnme (DPAP)

Dubashi. P.R.'Ewivedi, R.N.

Dwivedi, Surendranath. Dynamit Nobel

295

152-4

38

trg154, 157-8

1.) 1<

40

L2,L3,163

L20

59

u193,237

10

97 -8, r7 l, L88, L96-7, 202

33

75,m2

68

20

87,88

80,81,87

243

243

t7195

87,89

230,?65

70-2,69

76

2t95I

158

67

T_

296 Two.Afuninistraton : Iiteraction Between ICS and IAS

Eastern States AgencyEast GermanyEconomic Times, BwnbayEID Parrv

Eisenhower Exchange Fellowship (EEF)Emergency

European Economic Community (EEC)

Federal Public Service Commission (FPSC)Fernandes

Fertilisers & Chemicals Travancore &Cochin (FACT)

Fertiliser Corporation of India

160

93,265

62

554,A787,93,96,2nL-2,205-6

25

4-6

243

60,62,64,6662,64,6,69,74-5

1-85

4

27L,n5188-90, 194

25L

I40,n5-6u:3?58

138

190

2n67

L72,r8432,96,L04,108, 114-5,

L4L, L55, 180-1, 186, 243

lL,12,1,54-5,157

202

F

Fertiliser Distribution CommitteeField Controller, Military Accounts (FCMA)Finance Commission

Five Year Plans

Fletcher, A.B.Food & Agriculture Organisation (FAO)Ford Foundation

Foundation for Organisational Research & Education (FORE)Freeman, Orville

Gadgil, D.R. ProfGalbraith, J.K. ProfGanapathi, RGanatantra Parishad (Party)

Gandhi, Indira Mrs

Gandhi, Mahatma

Gandhi, Rajiv

n,39, q, 16l, L64, 166, 169, 170,

G

Index

Gandhi, Sanjay

Gangpur

Ganjam

Garden Reach Shipyard

General Motors

Geneva

Ghosh, AGhosh A Srikant

Ghosh, Sunit

Gian Chand

Giri, V VGopalaswamy Alyangar N

Gountia

Government of India Act, 1935

Graingola Scheme

Great Eastern Shipping Co

Gujarat High CourtGujarat Pharmaceuticals

Gujarat Stato Fertilisers Corpn

Gupta, Bhupesh

Gupta, R.S.

Haksar, P.N.

HaldiaHanumanthaiya, KHarvard University

Hasan, NurulHazari, R.K DrHegde, Ramakrishna

Himmatsinghka

Hindustan Ciba-Geig5i LtdHindustan Motors

Hindustan Shipyard

297

L74,202

L6t1S 20tt, '

93,98

22

93

103

L82,L8t52, L55, L57, t63- 4, L72, 17 4-5

L33-5,nL-2196

J7

ur49

25

9L,93

2472

62

72,75,82,E5,86

67

68,7+6,?ffi-z66

198

23t85

190-1,200

145

18

L20

22

93

H

298 Two Administratorc : Interaction Between ICS and IAS

Hirakud Dam

Hirakud Land Organisation

Hussain, ZakirHyderabad

Hyder Shariff

Imperial Chemicals, India

t29,16r-2

235

L96

78,L01,

T9

&Indian Administrative Service (IAS) 4, 13-4, 17, 68, 80, 101,

133, 198-9, 2t8, 230, 233- 4 2KIndian Audit & Accounts Service (IA.{S) 3,67

.Indian Civil Service (ICS) 3,4,6,L1,16-7,23,55,59,68, 7 8, 102, 2L3, 233 - 4, 2X

Indian (Civil) Administrative Service

Association

ICICIIndian Council of Agricultural Research (ICAR)Indian Farmers Fertilisers Cooperatirre

Indian Institute of Management, Ahme$abad (IIMA)Indian Institute of Public Administration (IIPA)Indian Medical Service

Indian National Shipping Association

Indian Petrochemicals Corporation (IPCL)

Indian Register of Shipping

India Steamship Co. Ltd.

Industrial Development Bank of India (IDBI)Industrial Licensing Policy Inquiry Comrnittee

Institute of Rural Management, Anand (IRMA)International Food Policy Research Institute (IF-PRD

International Mines, Minerals andChemicals Ltd. (IMMC)

International Rice Research Institute (IRRI)

28,85-7,262

90

t39,244

58

109

L99

5

91'

67

87,N)-2

91

108,259

L9r109

738,?51

62,63

Lq

Index

Jaipal Singh

Jalan

Jaitley J.C.

Jana Congress

Janata PartY

Japan

Jatti B.D.

Jayakar, Pupul

Jayaraman, P. DrJha, L.K.

Jharkhand PartY

Johnson, L. President

Joneja, G.C.L.

Joshi, D.S.

K

Kabir, Humayun

Kalahandi

Kalinga lndustries

Kamaraj Plan

Kansas Agricultural UniversitY

i(anungo, Nityanand

Kapila, P.K.

Karnal

Kasturirangan

Kaul, R.KKendu leaves

Keonjhar

Khadi & Village Industries Commission

Khadi & VIR Committee

Khanna Commission

KhurdaKoraput

159

59' 60

2L9

r70,r7r97, 98, l7 4, 202, 205, 243

55

81,85

t46llJ

186-7,200

1.59, L66, L72

189

15,L7

55,56

59,60, 185

20

52,179

169, 189

56

158, 1-63-4, 178

M,4510

65

15-7

30, 35, 37, 39, 40, 42,80, 183-4

299

20

118, 119

77,78, LLl, 120, 243,U9

52,170,L"19,1.80, 184

13, 15

20,48

300

Koshal Trading S5ardicate

Koshal Utkal PrajaparishadKotaIftipalaniKripasindhu GodavarisKripasindhu LingrayKripasindhu L.N.Krishen Deq R/AdmiralKripasindhu Roopam MissKrishi Vigyan Kendras

Krishnamachari, T.T.Krishnamurthy, C.S

Krishnamurthy, RKrishnamurthy, T.S

Kumar, LowajKumaramangalam, M.Kurein, V DrKurnoolKurukshetra

Lakhani

Lal HLala Lajpat RaiI.enk4 Dhananjay

Lloyds

Lohia, Ram Manohar DrLokanathan, P.S Dr

Machel, President

Machkund ProjectMahabharata

Mahalanobis, P.C ProfMahanty, Bepin

L

M

Two Administraton : Interaction Between ICS and IAS

28

16l59

10

L54

r5474

98

113

2459,60, 195-6

60

97

90

60,67

2M,201110, 196

32

10, 11

2:26

74

155

136

9lL92,I94

4L

2r532

2L2

190

272

r

I Indq,

Patnaik (A.O.A.R.Cs)

Patnaik, Biju

Patnaik, Gyan

Patnaik, J.B

Patnaik, L.MPatnaik, Shyamanand

Patro, B.KPatro, Chaitan

Peace Corps

Pearlby

Peoples' Society India

Pimputkar

PIREFPlanning Commission

Port Trusts

Pradhan, P.M

Pragati, Socialist Party

Prajatantra

Prakasam, TPrime MinisterPune

Puri

Pwi College

Puri, Harsh

Puri, K.R

Purnea

Purulia

Quit India Movement

Raghnath Singh

Raghupati, K.S

305

'25

5t-465,r34,L:X,152,166- L7 0,L7 2-6

179

L75

L5+5

L2

56

)155

85,97

76,77

7'1,125,144,L46,189,192 240,247,27 5

95

r6t,l7l-2r73-4

80,99

259

74,87,97,r08,tl4,r454

12,13,20

tz,255

104

Ln-g,LsLtn

atsL,L58,166,r76

R98

Lr,n4,z'15

306 Two Administrators : lnteractiort Between ICS and IAS

Raja of AthgarhBalasoreDhenkanalKeonjharTalcher

Rajagopalachari, C

Rajnagar

Rajya Sabha

Rajwar, LMSRam, Jagjivan

Ramachandran, GRamachandran, VRamagundam

Ramakrishnayy4 MRamamurthy, KRamanathan, VRamarao, N.T.

Ranade, S.N

Ranchi

Rangarajan, R DrRao, B.KRao, G.V.K.

Rao, H.S

Rao, J.V.

Rao, M.M. DrRao, S.S.S.

Rao, V.RRao, Vijayaraghava

Rath, Radhanath

Rath, R.KRau, S.K. DrRayaghada

Rayudu, DrReddy, Pratap C Dr

153

rv)180

85

92

203,206

201

z0r65,66

146

43,96115,?9,273

L7,44,45,235

tt198

126

103

89,94

r07

9l109

38

26

26

trz37,38,40-2,136

270

45-1 ,58,109,234,277

43,49

r4()

103

307

Reddy, Sanjiva 172'196

Relief & Rehabilitation, Ministry of 252

Registrar, Cooperative Societies 26'249

Reserve Bank of tndia l'1,30,33-4,101-9,113,1L5-8'L21'189'

Road Construction CorPoration

Round Table Conference

Rourkela Steel Plant

Routray, Nilamani

Rubber Board

Rumania

Rural Credit Review Committee

SAFAUNS

Sahu, Dinabandhu

Sahu, LakshminaraYan

Sahu, L.NSAILSamal, J.M

Samaj

Sambalpur

Samyukta, Socialist PartY

Sarabhai Chemicals

Saraf, T.N

Sarbarakar

Sarjoo Prasad Commission

Sarkaria Commission

Satpathy, Nandini

Satyabadi School

Secretary, Agriculture

Secretary, ShipPing & TransPort

Sen, Nakul

Sen, S.R. Dr

245-6,28- 50,:262

87-9

149,156

41

t52,L59,,163,L67 -9 r'7 r-3,r7 5

IL993

193,,247

90

43,165

161

19

20L

r82

37,136-7,t55

20,34,44,161-2,237

L92,194.71lt'

)1<

L4

40,L7r-4 L80

t45

4t-2,50,7 9 -83,86,99,L7 l- 4,lu154,157-8

138-91?Q

58,59,185

35

l--

308 Two Adninistrators : Inkraction Between ICS and IAS

Sen, Triguna DrSenapati, NServants of India SocietySethi, P.C

Sethna, H.N DrShah

Shah Commission

Sharma, B.NSharma, O.P

Sharma, S.N .

Shastri, Lal Bahadur

Sheth,Vasant

Shipping Corporation of IndiaShipping Development Fund CommittoeSingh Deo, R.N

Singh, G.B DrSingh, L.P

Singh, Manmohan DrSingh, T.P Senior

Sivaraman, B

Small Business Administration

69,72,14

16,235,237

161

88

74

11"1

18L

109

rL3278_9

68,89,185_8

g.l-,93

92,98

87,89,90,t86,247

39,133,,135 t5r-2,L6r,L67,L7 0 -3,L7 5 - 6,t92-3

38

L87

103, 109,115

78

L6,17,r8,2L,24,29,30 - 1,45 -7,52-3,5 5 -6,59 -9,L02,L0'7,1 7 4

Small Farmers' Development Agency ($FDA)Social Welfare DepartmentSonepur

Srinivasan, C.P

State Bank of IndiaState Transport Service (STS)

Straw Products Paper MillSubramaniam. C

Sundararajan, S

Sundargarh

Supakar, Sharaddakar

56

76,r94

55,56,an

92,98

90

t8-21,,47

49

139, 143, Lg5,Lg9

68tn

t62

IFFRY:-l'.t+ti:'

Index

Su.ryanarayanan, KSwaminathan, M.S DtSwaminathan, T

Swaraj Paul

Swatantra Party

Syndicate

Talcher

Tambe, W.S

Tataghata

Tattwa Prachar Kendra

Tea Board

Tenants Relief ActTenessee Valley AuthorityThakkar M.P. Justice

Titaghur Paper MillsToyo Engineering Co

Training & Visit System

Transport Advisory Council

Tripathy, Kamalapathi

Tripathy, Sadashiv

Trivedi, C.M.

Trivedi, H.M.Tuticorn

U

Ujagar Singh

UNCTADU.S.A.

Ushaben, DrUtkal Congress

Utkal Congress Workers' Comrnunist League

Utkal Gitaishini Sabha

Utkal Stbha

309

29

r38,244

65

1L6

170,172,L95-6.,207

196,2n7

20,65,161,

90

L74

183

119

L4

56

zLg

36

621i<

22

94, g7

18,L35,a52,L69 I70181

gg,gg,2o2

66

97

92

55{,6511

156,r72

r57

153

r52

3r0

Utkal Sammilani

Utkal University

Venkatappaiah, B DrVenkataraman, K.G.

Venkataramanan, G

Venkateswara, LordVibhushan, Padma

Village l-evel Worker (VLW)Vikas Volunteer Vahini (VW)Visakhapatnam

VL Mehta Committee

Wadud Khan

Wali, M.M.K.Weber, MaxWillingdon Hospital

World Bank, The

Yanbo Port

153-4,156

t3

33, 7 6, 77, 102, 246-7, 286

110

118

7

I+I

a^<

. ll3-489,93,94

246

201

115

2r4,256-258-9ti

56; 107, 1,f0, 188-9, 245, 249, 250-I

v

w

Y