The second is a deep commitment to good governance.  This goes far beyond lip service, and includes numerous instances of risky decisions.  That is, risky by the standards of conventional wisdom, but which ultimately turned out to be huge political successes.  In the early days, every time key cabinet colleagues were dismissed for corruption, or well-connected businessmen were arrested for criminal intimidation, there were widespread predictions that the government would fall because these actions were “naïve” and “impractical” and that “too many powerful forces were being taken on.”  But instead, they resulted in sharp increases in popular support. 

Gutsy decisions were taken across the board.  The inefficient and corrupt lift irrigation corporation was broken up, unsettling thousands of employees, but it was replaced with the revolutionary pani panchayat system, where lakhs of villagers took responsibility for better management of water.  Good governance was not all about taking on entrenched vested interests.   Orissa, then broke and deeply indebted, also showed an open mind in quickly adopting the Fiscal Responsibility and Budget Management (FRBM) Act and the Value Added Tax (VAT) at a time when many states were opposing them tooth and nail.   

One of the most important decisions involved taking on the government of India and the powerful mining lobby.  Despite having enormous mineral reserves, Orissa had long been shortchanged by discriminatory central government policies which yielded a pittance in royalties and encouraged downstream investments to be made elsewhere.  The state government’s new value addition policy linked the grant of mining leases to investments in the downstream processing plants.  This has led to a huge surge of investment:  more capital has flowed into Orissa in the past five years than in the previous fifty-five!  The subsequent surge in state revenues has enabled many pro-poor policies. 

... contd.