JHARKHAND SWEARS IN A NEW CHIEF MINISTER

UNCLAS CALCUTTA 000425 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV PREL IN EINV SUBJECT: JHARKHAND SWEARS IN A NEW CHIEF MINISTER REF: calcutta 0401 ¶1. (U) Summary. On September 18, an Independent Member of Legislative Assembly (MLA) Madhukar (Madhu) Koda was sworn-in as the new Chief Minister of Jharkhand. Koda is Jharkhand's fifth Chief Minister since the state's creation in 2001. Three defectors from the previous government - Anos Ekka, Kamlesh Singh and Harinarayan Rai were also sworn-in as ministers. Koda, who has the support of 42 of the MLAs in the 82-member house, has been asked by the governor to prove his majority on or by September 25. He is likely to prove his majority on the floor of the Assembly on September 20. End summary. ¶2. (U) In his first press conference, Koda announced that 43 agreements reached between the previous NDA government and industrial houses including Mittal Steel, Tata Steel and the Aditya Birla Group will be reviewed from scratch by his UPA government. The previous government had signed 43 MOUs for projects with proposed investments exceeding Rs 175,000 crore (Rs 4.6 crore is approximately USD 1 million),including a Rs 40,000 crore steel plant by global leader Mittal Steel. The Birla Group had signed an MOU for a Rs 7,800 crore aluminum smelter plant in the state. The agreement review would also cover the rehabilitation and health insurance policies of the previous government. For those wishing to invest in the state, Koda said, "The UPA government will ensure a friendly environment for serious investors who are committed to the growth of the state. The UPA government is committed to give a friendly investment policy." ¶3. (U) On unemployment, Koda said his government would take steps to eradicate poverty, noting that 54 per cent of Jharkhand's population lived below the poverty line. Social security would also be provided to all sections of society. He said the government would also set up institutions of higher educations so that students did not have to go out for pursuing studies. Koda added that the new government would churn out "a more lucrative surrender policy" to bring Maoists back into the mainstream. ¶4. (U) Koda's immediate problem is the formation of his ministry. His failure to get a single minister from within major UPA coalition partners to join the cabinet indicates that there is intense lobbying for ministerial berths within the UPA coalition. Koda appears non-plussed saying that the ministry would be expanded only after he proves his majority on the floor of the Assembly on September 20. ¶5. (U) The now opposition BJP was quick to predict trouble ahead for the new regime. "Why, despite countless rounds of negotiations, have Madhu Koda and his UPA patrons failed to decide on the names of other members of the new council of ministers even four days after Munda's fall? asked senior BJP leader Sarayu Roy. Roy told Post that that the Koda-led UPA government "would not last long." ¶6. (U) Bio of Madhu Koda follows: At 35, Madhukar (Madhu) Koda is the youngest Chief Minister of Jharkhand. Koda ran as an Independent MLA in the 2005 elections after failing to get on the Bharatiya Janata Party (BJP) ticket. The BJP did not expect that the short, thick moustached and curly-haired Koda, who prefers designer clothes to the khadi dress code, would one day emerge as the dark horse to dismount the 18-month-old Arjun Munda government. Hailing from a tribal farming community, Koda began his career as a social activist and participated in politics before he completed his matriculation. Joining the RSS in 1990, Koda entered the assembly as a BJP member in 2000 from the Jagannathpur constituency and became the Panchayati Raj minister in the Babulal Marandi government, which was formed soon after the bifurcation of Bihar. He has remained a minister since then. Born on January 6, 1971 at Patahatu in West Singhbhum, Koda faced several hurdles in his political career, including the failure of his marriage during his tenure in the Arjun Munda cabinet. The soft-spoken Koda continued his balancing act deftly, not allowing his personal life to affect his political career. "This post is not a bed of roses but a crown of thorns," observed Koda soon after staking claim to form the government. "If I become the chief minister, it will be the support and blessings of god, my elders and friends." JARDINE