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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Fadnavis writes off Rs 48,000 crore

Mumbai: In a clear indication that the Maharashtra government is leaving no stone unturned to keep the state’s agrarian base happy, Chief Minister Devendra Fadnavis has unleashed yet another massive populist measure. Hot on the heels of relaxing the eligibility criteria to ensure a blanket farm loan waiver, the Chief Minister announced a sweeping Rs 48,000 crore waiver on the pending electricity bills of farmers across the state. Addressing a ‘Krutadnyata Sohala’ (gratitude ceremony)...

Fadnavis writes off Rs 48,000 crore

Mumbai: In a clear indication that the Maharashtra government is leaving no stone unturned to keep the state’s agrarian base happy, Chief Minister Devendra Fadnavis has unleashed yet another massive populist measure. Hot on the heels of relaxing the eligibility criteria to ensure a blanket farm loan waiver, the Chief Minister announced a sweeping Rs 48,000 crore waiver on the pending electricity bills of farmers across the state. Addressing a ‘Krutadnyata Sohala’ (gratitude ceremony) organized by the BJP Kisan Morcha at Mumbai’s Yashwantrao Chavan Pratishthan on Wednesday, Fadnavis declared that farmers using agricultural pumps of up to 7.5 horsepower will see their historical electricity dues completely wiped out. The announcement was met with the traditional sounding of the Tutari and thunderous applause from hundreds of farmers who had gathered from every corner of the state. The Chief Minister framed the mega-sop as a necessary step to “wipe the farmers’ slate clean,” enabling them to write a new chapter of prosperity. Calculated Pitch The timing and scale of the announcement underscore a government that is boldly embracing populist economics to solidify its political footprint in rural Maharashtra. While Fadnavis maintained that these decisions were taken purely in the interest of the farmers—pointing out that the original loan waiver was announced when no elections were in sight—the political undertones were unmistakable. Taking a sharp dig at the opposition, the Chief Minister accused rival parties of running “political shops” in the name of farmer agitations without understanding the government’s genuine intent. Asserting his grassroots connection, Fadnavis proudly claimed, “I do not make decisions sitting in my house. I am a farmer myself, a man of the soil.” He openly defended the government’s recent move to strip away the stringent conditions attached to the blanket farm loan waiver, signaling that his administration will not hesitate to clear bureaucratic hurdles if it means putting money directly into the hands of the rural voter. Balancing Sops Even as he rained freebies, the Chief Minister attempted to balance the populist optics with a dose of economic pragmatism. He acknowledged that handing out repeated loan waivers is a symptom of deep-rooted agrarian distress, not a permanent cure. Pointing to the Rs 95,000 crore in aid currently being pumped into the agricultural sector by the state and central governments, Fadnavis outlined his administration’s shift toward an investment-driven agricultural model. He championed the success of schemes like ‘Jalyukt Shivar’ and ‘Magel Tyala Shettale’ (farm ponds on demand), claiming these initiatives have already empowered farmers to harvest multiple crops a year. Addressing the core issue of farming costs, he noted that the government already subsidises power to the tune of Rs 25,000 crore annually. By coupling this with a push for solar pumps and solar agricultural feeders, he promised that 100 percent of the state’s farmers would receive uninterrupted daytime electricity by the end of the year. Infra Dream Looking beyond immediate financial relief, the Chief Minister laid out a grandiose vision to permanently drought-proof Maharashtra’s most vulnerable regions. A staggering Rs 6 lakh crore infrastructure pipeline is being planned to ensure the next generation never witnesses a drought. Fadnavis detailed ambitious river-linking projects, including the Wainganga-Nalganga link, to divert excess floodwaters to parched regions. The state plans to construct 24 new dams and raise the height of 16 existing ones to ensure not a single district in Vidarbha faces water scarcity. Furthermore, massive engineering feats are on the drawing board to divert 200 TMC of floodwater from Western Maharashtra to Marathwada, and lift 275 TMC of wasted water from the Ulhas basin to quench the thirst of North Maharashtra and Marathwada. By marrying immediate, massive debt relief with long-term infrastructure promises, the Fadnavis administration is aggressively cementing its pro-farmer narrative. As the Yashwantrao Chavan auditorium echoed with whistles and cheers, it became highly evident that the government’s strategy of pairing mega populist waivers with big-ticket rural dreams is striking a powerful chord with the state’s agrarian voters.

Islands of Influence

Amid intensifying strategic rivalry across the Indian Ocean, India’s partnership with Seychelles shows how patient diplomacy and practical cooperation can yield enduring influence.

India’s foreign policy has often been often criticised in the past for paying insufficient attention to its maritime neighbourhood. That perception has changed markedly over the past decade. As the geopolitical centre of gravity shifts towards the Indo-Pacific, India has rediscovered the truth that influence at sea depends not merely on naval strength but on trusted partnerships with the island nations that dot the ocean. And few relationships illustrate this better than India’s steadily expanding ties with Seychelles.


Strategic Value

Seychelles appears an unlikely strategic prize - as Africa’s smallest country by both area and population, it comprises just 115 islands scattered across the western Indian Ocean, with barely 135,000 inhabitants and a landmass of less than 500 square kilometres.


Yet, sitting nearly 1,600 kilometres east of Kenya and astride some of the world's busiest maritime routes, Seychelles occupies a position of exceptional strategic value. Its economic success has reinforced that importance. Tourism, commercial tuna fishing, offshore financial services and a growing commitment to the Blue Economy have given Seychelles the highest per capita income in Africa. The country has also established itself as a pioneer in marine conservation, becoming the first nation to issue a sovereign blue bond to finance sustainable ocean initiatives. In an era when climate change and maritime governance have become central to international politics, Seychelles has acquired an influence far exceeding its size.


India’s relationship with the archipelago, however, is not a recent creation driven solely by strategic calculations. It rests upon foundations laid over two centuries ago. Historical records note that among the earliest settlers arriving in 1770 were five Indians who came as plantation workers alongside French colonists and African slaves. During British rule, regular shipping links between India and Seychelles facilitated commerce and movement across the Indian Ocean. These early connections gradually evolved into enduring people-to-people ties that continue to shape bilateral relations.


Formal diplomatic engagement began soon after Seychelles gained independence in 1976. India wasted little time in recognising the strategic significance of the newly independent nation. An Indian naval contingent participated in Seychelles’ Independence Day celebrations, diplomatic relations were established immediately thereafter, and India's resident High Commission in Victoria became operational in 1987. Since then, the relationship has steadily broadened from cordial diplomacy to an increasingly comprehensive strategic partnership.


Commercial Ties

Trade between the two countries remains modest in absolute terms, constrained partly by the absence of extensive direct maritime connectivity. Nevertheless, the commercial relationship is both stable and significant. India exports essential commodities ranging from rice and food products to pharmaceuticals, vehicles, cement and medical equipment. Indian companies such as Bharati Airtel, Tata Group and Ashok Leyland have established a visible presence in Seychelles, while agreements on taxation and financial transparency have provided greater confidence for economic engagement.


Connectivity has also improved. Direct air services between Mumbai and Mahé, launched following a bilateral agreement in 2014, have enhanced tourism, business exchanges and personal travel, strengthening interactions between governments, businesses and the sizeable Indian-origin community residing in Seychelles.


The relationship extends well beyond commerce. Climate change poses an existential challenge to small island states, making environmental cooperation a central pillar of bilateral engagement. The Blue Economy Protocol signed in 2015 recognised the importance of sustainable marine resources, renewable energy and responsible ocean governance. India has consistently supported Seychelles’ climate initiatives, including its participation as a founding member of the International Solar Alliance. These collaborations demonstrate that development partnerships increasingly encompass shared environmental responsibilities alongside traditional economic assistance.


Maritime Security

Perhaps the most consequential dimension of the relationship lies in defence and maritime security. The western Indian Ocean has witnessed growing challenges over the past two decades, from piracy and illegal fishing to trafficking and broader strategic competition among major powers. Small island states often lack the resources required to monitor their vast exclusive economic zones. India has sought to bridge this capability gap not through military dominance but through capacity-building.


It has gifted patrol vessels, fast interceptor boats and Dornier maritime surveillance aircraft to Seychelles. Indian naval teams have conducted hydrographic surveys of Victoria Port, while coastal surveillance radar systems supplied and installed by India have substantially enhanced maritime domain awareness. The biennial joint military exercise, LAMITYE, has further deepened operational coordination and professional exchanges between the two defence forces.


India has sought to build partnerships in the Indian Ocean on shared security and mutual benefit rather than treating smaller island nations as mere geopolitical pawns. That approach was underscored by Prime Minister Narendra Modi’s visit to Seychelles late last month, which coincided with the fiftieth anniversary of diplomatic ties. His talks with President Patrick Herminie spanned maritime security, climate cooperation and development, culminating in the announcement of a 175-million-dollar Special Economic Package that reaffirmed India’s long-term commitment to the archipelago.


The language employed during the visit captured the larger vision driving India’s maritime diplomacy. “Our vision is to make the Indian Ocean an Ocean of Opportunity. We believe the Indian Ocean is our shared home. Its security, sustainability, and prosperity are our shared responsibility,” the Prime Minister observed.


That approach will be tested as strategic competition in the Indian Ocean intensifies. External powers increasingly view island nations through the prism of military access, logistics and influence. For countries such as Seychelles, preserving strategic autonomy while securing economic development will require a careful diplomatic balancing. India’s advantage lies not simply in proximity but in decades of trust built through development assistance, security cooperation and historical affinity.


India’s engagement with Seychelles demonstrates that sustained diplomacy, respectful partnership and shared interests can produce strategic dividends that no amount of transactional statecraft can easily replicate. As the Indian Ocean assumes ever greater global significance, such partnerships may prove among India’s most valuable geopolitical assets.


(The author is a retired naval aviation officer and a defence and geopolitical analyst. Views personal.)

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