Season of Migration is about to Start

The onset of this summer will probably offer a number of insights that will be indicative of the directions of India's public policy in the next few years. 

The debate about importance of NREGA, the largest provider of jobs to the rural poor is about to tested. Already, a number of economists, ministers and social activists along with innumerable others have pleaded that the NREGA should not be diluted. While the debate about NREGA is unlikely to end in foreseeable future, on the ground the conditions of migrant workers is unlikely to change. 

The photo below show the accommodation that is provided to migratory workers in a brick klin in Andhra Pradesh that is dependent on migratory labour. On the day of their arrival, the workers "repair" these structures that are used for resting after the end of their work day. The work day varies and is based on the number of bricks that they can make rather than one based on the number of hours. 

Hustle Bustle of a Ferry in a Remote Region

The establishment of a ferry service across the River Krishna in 2014 seems to have had interesting economic impact in Gudimetla. The remote village, located in Krishna District, is interesting because it exists in the revenue records but, about 50 years ago people from the village moved out and settled in the neighbouring villages. Not many know the reasons for this. 

The Ferry (picture below) connects Guntur and Krishna districts. The Guntur side of the landing point for Ferry is about 15 kilometers from the village where the new Capital of Andhra Pradesh will be built.

In the first year, the contract to operate the Ferry service was auctioned by the government for Rs.1.8 million. In the second year (current year), competitive bidding push it to Rs.5.4 million - indicative of its popularity and utility. 

The picture below of the Ferry as it reaches the river bank on the Vijayawada side. Trucks carrying upto 5-6 tonnes frequently use it. It usually takes about 20 minutes to reach the other side. However, when it is overloaded it takes upto 30 minutes: most of the time it is overloaded. It consumes about 35 liters of Diesel for each trip. 

They charge Rs.10 for an individual, Rs.30 for a bike, Rs.150 for a car and Rs.1200 for a truck. A road trip between the two points means covering about 160 kilometers - which could take at least four hours. 

One immediate consequence is that land prices in the villages have gone up - much before the explosion in real estate prices in Andhra Pradesh.

Probably, it is one of those rare cases where a government investment turns out to be a win-win for all the stakeholders from the first day. The government gets the auction proceeds, people pay and actually benefit in a clearly quantifiable manner in economic terms. Time for more such investments by the government?