A NEW ERA IN INDIAN POLITICS
Introduction --- Editors
of SONGSOPTOK asked me to submit this month’s
article on Secularism
& its relevance in contemporary
Democratic politics. A very important topic , but I asked
for postponement of that by 1 month, because , Modi govt
is new – an event in itself &
at least for this month , there
are no dearth of issues , incl
comparison of 2 regimes & a
further analysis into why a secular regime failed after 10 years .. There can be more questions --- A) what is secularism ? B) Is
it same in an autocracy & a democracy?
C) Is it same in people’s autocracy? D)
Who are religious minorities? E)
Are not caste based atrocities
, throwing people out of temples, chariots & prasadam ,communalism ? F)
Are not atrocities on women
communalism? So, I have lingered / postponed this essay for next month .
I am writing this
piece on a day , RBI , like a predecessor in Planning Commission Chairman ,
confirmed / defined the poverty
levels in India ---Based on the Suresh Tendulkar panel's
recommendations in 2011-12, the poverty line had been fixed at Rs 27 in rural
areas and Rs 33 in urban areas, levels at which getting two meals may be
difficult. Those spending over Rs 32 a day in rural areas and Rs 47 in towns
and cities should not be considered poor, an expert panel headed by former RBI
governor C Rangarajan said in a report submitted to the BJP government last
week. The panel's recommendation, however, results in an increase in the below
poverty line population, which is estimated at 363 million in 2011-12, compared
to the 270 million estimate based on the Tendulkar formula — an increase of
almost 35%. This means 29.5% of the India population lives below the poverty
line as defined by the Rangarajan committee, as against 21.9% according to
Tendulkar. For 2009-10, Rangarajan has estimated that the share of BPL group in
total population was 38.2%, translating into a decline in poverty ratio by 8.7
percentage points over a two-year period. The real change is in urban areas
where the BPL number is projected to have nearly doubled to 102.5 million based
on Rangarajan's estimates, compared to 53 million based on the previous
committee's recommendations. So, based on the new measure, in 2011-12, 26.4% of
the people living in urban areas were BPL, compared to 35.1% in 2009-10. In
case of rural areas, the rise is of the order of 20% to 260.5 million, compared
to around 217 million based on the Tendulkar formula. Rangarajan's estimates
would put the BPL share of total population in rural areas at 30.9%, compared
to 39.6% in 2009-10. Rangarajan panel has suggested to the government that
those spending more than Rs 972 a month in rural areas and Rs 1,407 a month in
urban areas in 2011-12 do not fall under the definition of poverty.
I am writing this essay on a day NDA government has brought potatoes and onions in the essential commodities list, as well as moved to make hoarding a non-bailable offence. This may discourage hoarding, but the record of the state governments in tackling hoarders and black marketeers in the past few years is dismal. And the Modi government is dealing with the very same state governments as did UPA 2. between 2008 and 2013, a total of 26,472 persons were prosecuted under the Essential Commodities Act, the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act and rules flowing from it. This was after nearly 11 lakh raids were carried out and nearly Rs 1,200 crore worth of commodities were confiscated. But the most worrisome part is: Only 2,484 people were actually convicted. That's a conviction rate of less than 10%. It's unlikely to deter hoarders and black marketeers, especially if they are the big fish.
Actually , what we have inferred in last 1 month+ is the advent of some positive signs. There are good intents. And there is concentration of power in very few hands. PMO is a Power Centre . The ugly part is that Amit Shah is rising the BJP party presidency throne , & the good part is that India is preparing to flex its muscle & might with a mighty neighbour China , with MOS Home from Arunachal , a state that China considers its very own.
To
some extent , there can be
expected a betterment in Federal structure of India in
so far as Modi , a sufferer himself, shall not
allow Center to command over
state resources & start a
fair play in distribution of taxation & financial resources.
Modiji’s
practical approaches have never
cast any shadow on anybody. In 1 shot
Narmada dam Height rise has been cleared . In 1 shot the
temple of democracy that he bowed down & touched dust has ridiculed
democratic styles. In 1 shot India has
learnt to become China
realizing lately that capacity
building at borders of Ladakh, Siachen, Sikkim, Arunachal ,
Uttarakhand atopmost priority. Hopefully
we shall see some of the so
far neglected areas of renewable & untapped powers of very
highly capital intensive nature ,
come into being. Some 7
major projects have been cleared off red tape by Modi govt
.
The finance ministry has helped resolve financing issues facing three power projects, including the hydropower project in Sikkim that is 94% complete and was to be commissioned by this December. The Reserve Bank of India and the finance ministry were roped in to help expedite a loan sanction from the Power Finance Corporation for the Sikkim project. Chief minister Pawan Chamling is betting on revenues from the hill-state's hydro-power potential to turn the state debt-free by next financial year. A Rs 5,600-crore 1,050 MW power project in Odisha, being developed by KVK Nilachal Power, also had financing troubles due to implementation delays. A consortium of lenders has agreed to treat its loans as 'standard assets' by adjusting overdue interest from its undisbursed term loan. Similarly, a financing problem holding up a Rs 9,000 crore power project in Chhattisgarh developed by RKM Powergen to generate 1,440 MW of power, has been resolved after talking to its lenders' consortium which includes Power Finance Corporation, Bank of Baroda and Corporation Bank.Another Rs 1,256 crore project mooted by Essar Power to re-start its 1,015 MW gas-based plants in Gujarat's Hazira has also been expedited with a state environmental appraisal committee being formed
Problem of this govt is of centralization , extreme centralization & drift of democracy to autocracy –the way China is handling & the way USSR used to handle development issues. My professional body that comprises of the eyes & ears of the nation -- the FCAs in practice are seriously hoping that new govt shall roll back a no of threatening penal provisions imposed upon them by MCA. They are still not digesting the act of UPA , whereby these eyes & ears have been found guilty in cases ranging from Satyam , & no constructive action has been taken by ICAI in so many years & UPA has put CAG over the professional dadas, the elected leaders of the profession , who govern the genus / the species for a year are trembling, … In all probability, this govt is also by , of & for FCAs … like it is of, for & by the trading community , who include the greatest hoarders of the nation.
Hope,
my last treatise
was well taken.
There was a report I read recently. The report deliberated on how TOI became the
national paper of India so fast. The
report compared Hindu, India Express , Hindustan Times & Times of India .
The analysis explained that TOI is by
far the most compromising paper given an
all India lineage. In fact, the volume
of advts it garners incl
Eastern & NE editions ,
wherein Telegraph has also got a sizable
presence, speaks volumes of a
vast network that keeps this
paper alive n growing. This paper
puts little attention to magnanimous
essays, or best of articles. Deccan Herald, a paper mostly concentrated in
K’taka provides so much of intellectual
food , you may get surprised , why this paper is not read all the nation over. But most striking feature of Hindu over
competition named herein is that Hindu is so very rich & quite uncompromising.
And in typically southern papers, despite their
recently acclaimed all India
status, the Sothern falir & flavor are preserved, most treatises getting
contributed by Soth Indians. HT
comes with its KK Birla baggage & a
Congress lineage . But typically speaking, in today’s India, no paper can belong for long to a particular political
class / party. TOI , per se, is a paper well enjoyed across age groups,
& readers are hardly concerned about the lengths & breadths of treatises.
Rather they indulge in debates. In our childhood , we were taught to learn
English from Statesman . Then came
Telegraph, in 1982. Invaded... and became UNPUTDOWNABLE . If we look at
the Free Press Journal or DNA or any
other tabloid, we find, the youth of India , the biggest chunk of readers that
have grown TOI from its maiden vesrion in Chennai to Chennai, Trichy,
Coimbatore,
Puducherry, Trichy & Madurai versions in TN; Trivandrum, Kochi, Thrissur, Kozhikode versions in Kerala; Mangalore, Mysore, Hubli, Bangalore versions in Ktaka; Hyd, Vizag, Vijaywada versions in AP. If you really analyze, it is Kerala where 2 editions come out within a distance of just 60 km. Because Kerala’s own Malayala Manorama failed to garner an English alternative appropriately. Hindu’s predominance & Partial reign by Deccan Chronicle with same spice as TOI has also prevented the growth of TOI in AP across all corners. But it has been very surprising to note the in-depth analysis where Arnab Goswami has been allowed to take their news channel at the crucial newshour. This channel has been a perfect blend / admixture of diff flares & palates -- in depth & yellow journalism, presentation of great topics in popular packages.
You must have been thinking by now, why I am discussing all these , when I need to discuss on economics & politics . There have been stray incidents since Modi govt has sworn in. a) Mr Rajdeep Sardesai & Ms Sagarika Ghosh have gone on very long leave at CNN IBN , as soon as Reliance has bought Network 18. Not very surprisingly, most of the channels are managed / influenced by lobbies that are not neutral , either economically , or politically. What a farce it sounds , when Mr Prakash Javedkar openly declares that he would have wanted to dissolve his ministry. If there was a wave created by BJP to ride the throne , that was the creation of a meticulously planned & very well crafted media mgt. No govt in India can ever ignore the power of this ministry. And Mr Modi, who tweets each success & shares with the social netizens, how can he ignore the power of this ministry? And the ministry that boasts of Bimal Julka, Supriya Sahu, Raghavendra Singh, Anurag Srivastava, Nirupama Kotru, Rejimon & Niti Sarkar --- all 7 stalwarts in resp fields, is this just to prepare for dissolving a ministry?
In Bengal we have grown observinng how Yugantar was thrown to oblivion , a paper managed by hardcore Congress family. Even after 2 yrs + of coming into power, Mamta could not rejuvenate Basumati. Trinamul has got a slurry of papers funded by spurious funds, and some of so running dailies are gradually shifting loyalty from left block to extreme right of the block. Hindi heartland still goes with HT. We have already discussed in last issue the relative poverty of Northern India on a reference scale of Southern counterpart .And strangely enough, you cannot correctly interprete that Southies know English far better than North Indians. But till date TOI publishes just 1 issue from each of Eastern states , & Assam Tribune of Ghy first gave way to TT , then to TOI, which has just 1 lone version across the vast 7 state wide hilly terrains . But whatever competition may come, India Today to TOI to ABP & their media channel counterparts are being run by same capitalist interests ... and there ABP news has been thrown to a backseat by too enthusiastic Times Now.
Enough ,,, let’s change topic. On 21 June 2014, in a Bangalore seminar of ICAI, I met Mr Raghu , current chairman.
In all lectures after the introduction
of new Companies Act, the orators gave
very big lectures on how
frightening the penal provisions
have been made anti profession &
anti corporates. Industrialists &
FCAs alike flocked together to meet Nirmala Seetharaman in Chennai. Since she could not make it, they all met the
Secretaries in MCA. Sure, this govt by , for & of business—capital—industry combine shall
make it easier for all.
When we look back at certain acts of UPA regime, it looks horrific & terrific. Freedom of work gone... to cover up funds for Mrs Gandhi’s pet MNREGA program. The people themselves known for dishonesty left n right used to issue dictats to Commissioners & below of CBI enquiry into all acts favoring assessees. No civilization can run on such mistrusts . No Commissioner giving any genuine verdict in fear of revengeful retributions, all amendments coming with retrospective effect after deptt loses a battle in a court... All these must go... all must act very fairly & without fear... But all these provisions mean nothing for Sharda like chit funds , as they are not corporates & are not governed by Companies Act 2013. Well, Sahara can be brought to books partially, but shall the money come back that myriads of investors have lost... or Ceat Finance , Lloyds Finance & a host of spurious finance cos... Today, in villages , most of social events are sponsored by Sharda like funds ,,, spurious micro credit instns & not genuine Grameen Banks that Yunus instituted in B’desh. Those grameen banks & rural coops need to spread wings across states of India , if roads, power, water , sanitation have to reach Indian corners.
Till
now, & in my last
article media & we , the people , have been aghast with the
oasis –Namo, --Moditva. Now, here, Indians , you are probably going to have
a Man , who can take you to a ride
on Presidency. It is not the debate here whether presidential system is better or worse, debate here is what
achieves better as a server of the populace. And, what Dr Singh could have achieved, given a free hand , being an
apolitical eco scholar &
beaurocrat, probably NAMO shall achieve
with fan & fad. Today we got Shashi
Tharoor in all praise for this man at the centre , after an 180 degree
drift from decade-old rightist image
and wining accolades one after another , bulldozing oppositions one after another , ushering in a new era,
maybe away from age-old centre
state fights unbalancing the federal basics.
Here is the PM who , like a corporate consultant & analyst , looks at a rape from a glass eye of a visionary & reaches straight to the root cause & the fish bone diagram , strategises in 1 day, to build community latrines in all villages. We have all seen rows of males with wife / wives releasing nature’s call even in highly industrially , growth –prone areas . But Bindheswar Pathak’s concerted efforts in mass sanitation .
Minister Venkaiah Naidu has already said
that the NDA government will come out with a new mission to make the existing
cities better and also to develop new cities in a planned manner. Sources said
that the ministry officials are preparing the policy framework and document so
that government can start its project soon. TOI has learnt that under the new scheme,
which is under preparation, the Centre will give more liberty to the state
governments to chose projects and there will be greater monitoring. These were
largely missing during the implementation of JNNURM.
Another focus area will be use of more information and communication technology (ICT) tools for better governance and service delivery, sources said. "This will include creating wifi zones across cities. First target would be the public places and commercial complexes. We will also fund projects for IT based monitoring of public transport for efficient management," another UD official said.
Another focus area will be use of more information and communication technology (ICT) tools for better governance and service delivery, sources said. "This will include creating wifi zones across cities. First target would be the public places and commercial complexes. We will also fund projects for IT based monitoring of public transport for efficient management," another UD official said.
TOI reports--- Not since 1987-88 has
economic growth been below 5% for two consecutive years. In 2013-14 the economy
grew 4.7%, marginally higher than the previous year's 4.5%. Sift the data and
the story is worrisome. Manufacturing, mining, construction and trade, areas
that create jobs for relatively unskilled people, are doing badly. It shows how
badly the economy needs a catalyst to pull it up from the dumps. UPA had lived
for long on the Micawber principle: "something will turn up". It
never did and UPA paid the price at the hustings. Over the last two years,
finance minister P Chidambaram partially repaired Union government finances by
relentlessly squeezing expenditure. However, he avoided politically sensitive
cuts in expenditure such as subsidies. This is where BJP must prove worthy of
its mandate. A cut in subsidies will allow Chidambaram's successor, Arun
Jaitley, to redirect resources to creating new infrastructure. In addition, NDA
must embark on a strong disinvestment programme to raise resources for economic
revival. Civil aviation minister Ashok Pusapati mooted the idea of privatising
Air India but appeared very hesitant. However, Air India is an excellent place
to start as it will drain money from the public exchequer for the foreseeable
future. And that is not impossible, simply
make 25% public holding of shares
mandatory for PSUs & real a/c
deficit shall vanish off.
Prime Minister Narendra Modi unveiled innovate ideas to make development a mass movement, clean up politics and change India’s image from “scam India to skill India” in his reply to the President’s address to Parliament.In his first speeches in the two houses of Parliament, Modi talked about empowering the poor through education, imparting required skills to youth for jobs, improving farm productivity and special development focus on north-eastern India.He also spoke about the need to make the two houses of Parliament “taint free” by asking the judiciary to decide on all pending cases against MPs within a year. This will be later replicated in states and civic bodies. Replaying to a debate on Motion of Thanks to President’s address, Modi told MPs in the Lok Sabha that he intends to speed up research work in agriculture universities and take them from laboratories to farm lands that would lead to an increase in productivity.The Prime Minister made a strong pitch for engaging students of agriculture to roll out his ambitious soil health card scheme that would help farmers determine the quality of the soil.He also emphasised on using information technology for real time data about agro products, which would help in better management of products. More on agriculture, he said there was a needed to replicate the Sikkim mode of organic produce which has a huge market in the west. He also floated the idea of the trifurcation of Food Corporation of India into three segments to deal separately with procurement, storage and distribution works. He laid focus on skill development to cater to the growing demand worldwide and making a big entry into ‘production’ of teachers who could be ‘exported’ to foreign countries.“We are the youngest nation. We can provide skilled manpower to the entire world,” he said.The Uttar Pradesh government has been sitting on Rs. 293 crore provided by the Centre for building toilets considered key to the security of women in rural India.
29th state of India is a reality now & its Man Friday – the ultimate opportunist , has already completely distanced himself from BJP, since electorate has a major share of Muslim population. Before we come to details of TG & AP, kly have a look at Soniaji’s demands for AP---
SONIA'S WISHLIST
To ministry of water resources:
1. Notification of Polavaram Project Authority
2. Notification of KWDT-II additional terms of reference
3. Notification of apex council on water resources
4. Notification regarding Tungabhadra board
5. Notification regarding Krishna and Godavari river management boards
To ministry of home affairs:
1. Ordinance on transfer of certain mandals from Khammam to East Godavari and West Godavari for facilitating Polavaram project
2. Ordinance on correcting error in the Act regarding sharing of power from central generating stations
3. Cabinet note on establishment of National Institute of Disaster Management
4. Issue of rules for clarifying governor's 'special responsibilities' under Section 8 of the Act
5. Support for raising additional police forces
6. Taking over the Greyhounds Training Centre and operational hubs in AP
To ministry of finance:
1. Follow-up on cabinet decision on 14th finance commission
2. Allocation of 13th finance commission award
3. Special grant for 2014-15 to tide over revenue deficit in regular Union Budget of 2014-15
4. Announcement of Uttarakhand-type fiscal incentives for industry in designated backward areas
5. Financial support for the establishment of new capital
To HRD ministry:
Prepare Cabinet Notes for establishment of IIT, IIM, IIIT, NIT, IISER and Central University
To ministry of health:
Prepare Cabinet Note on establishment of AIIMS-type super specialty medical complex
To ministry of civil aviation:
Cabinet Notes on making Visakhapatnam, Tirupati and Vijayawada international airports
To ministry of defence:
Permission from Indian Navy to allow Visakhapatnam to operate as full-fledged international airport
To ministry of petroleum/IOC/HPCL
1. Cabinet Note of establishment of Petroleum University
2. Feasibility of establishing Greenfield refinery and petrochemical complex.
Ministry of urban development:
Feasibility Study of metro rail facility in Visakhapatnam and Vijayawada-Guntur-Tenali metropolitan urban development authority
Ministry of railways:
1. Examine feasibility of establishing new railway zone and expeditious decision thereon
2. Rapid rail connectivity between Hyderabad and new capital.
Ministry of steel:
Feasibility of establishing steel plant in Kadapa district
Ministry of commerce and Industry:
Feasibility of Vizag-Chennai industrial corridor along lines of Delhi-Mumbai industrial corridor
Ministry of agriculture:
Cabinet Notes on establishment of agricultural and horticultural university
Ministry of tribal affairs:
Cabinet Note on establishment of tribal university
Ministry of communications and IT:
Cabinet note on establishment of IIIT
Ministry of shipping:
Cabinet note on development of new major port at Duggirajupatnam
To planning commission:
1. Notification of and subsequent endorsement of NDC for special category status for state
2. Activation of special cell for Seemandhra under chairmanship of deputy chairman
3. Formulation of Bundelkhand-type special development package for Rayalaseema and north coastal Andhra
Department of personnel and training:
Finalization of Kamalnathan (state-level) and Pratyush Sinha (all-India services) committee recommendation on allocation of personnel
Ministry of law and justice:
1. Follow-up with SC on establishment of a separate AP high court
Ministry of environment and forests:
If required, denotification of the degraded forest land for the new capital
To ministry of water resources:
1. Notification of Polavaram Project Authority
2. Notification of KWDT-II additional terms of reference
3. Notification of apex council on water resources
4. Notification regarding Tungabhadra board
5. Notification regarding Krishna and Godavari river management boards
To ministry of home affairs:
1. Ordinance on transfer of certain mandals from Khammam to East Godavari and West Godavari for facilitating Polavaram project
2. Ordinance on correcting error in the Act regarding sharing of power from central generating stations
3. Cabinet note on establishment of National Institute of Disaster Management
4. Issue of rules for clarifying governor's 'special responsibilities' under Section 8 of the Act
5. Support for raising additional police forces
6. Taking over the Greyhounds Training Centre and operational hubs in AP
To ministry of finance:
1. Follow-up on cabinet decision on 14th finance commission
2. Allocation of 13th finance commission award
3. Special grant for 2014-15 to tide over revenue deficit in regular Union Budget of 2014-15
4. Announcement of Uttarakhand-type fiscal incentives for industry in designated backward areas
5. Financial support for the establishment of new capital
To HRD ministry:
Prepare Cabinet Notes for establishment of IIT, IIM, IIIT, NIT, IISER and Central University
To ministry of health:
Prepare Cabinet Note on establishment of AIIMS-type super specialty medical complex
To ministry of civil aviation:
Cabinet Notes on making Visakhapatnam, Tirupati and Vijayawada international airports
To ministry of defence:
Permission from Indian Navy to allow Visakhapatnam to operate as full-fledged international airport
To ministry of petroleum/IOC/HPCL
1. Cabinet Note of establishment of Petroleum University
2. Feasibility of establishing Greenfield refinery and petrochemical complex.
Ministry of urban development:
Feasibility Study of metro rail facility in Visakhapatnam and Vijayawada-Guntur-Tenali metropolitan urban development authority
Ministry of railways:
1. Examine feasibility of establishing new railway zone and expeditious decision thereon
2. Rapid rail connectivity between Hyderabad and new capital.
Ministry of steel:
Feasibility of establishing steel plant in Kadapa district
Ministry of commerce and Industry:
Feasibility of Vizag-Chennai industrial corridor along lines of Delhi-Mumbai industrial corridor
Ministry of agriculture:
Cabinet Notes on establishment of agricultural and horticultural university
Ministry of tribal affairs:
Cabinet Note on establishment of tribal university
Ministry of communications and IT:
Cabinet note on establishment of IIIT
Ministry of shipping:
Cabinet note on development of new major port at Duggirajupatnam
To planning commission:
1. Notification of and subsequent endorsement of NDC for special category status for state
2. Activation of special cell for Seemandhra under chairmanship of deputy chairman
3. Formulation of Bundelkhand-type special development package for Rayalaseema and north coastal Andhra
Department of personnel and training:
Finalization of Kamalnathan (state-level) and Pratyush Sinha (all-India services) committee recommendation on allocation of personnel
Ministry of law and justice:
1. Follow-up with SC on establishment of a separate AP high court
Ministry of environment and forests:
If required, denotification of the degraded forest land for the new capital
An excellent job done, Soniaji.
Outstanding… But question that any poor Indian would ask is,-- --- What did you people do for 10 years? Madam, you have been Champion of Senonomics & welfare
state for a decade. So many policies,…
your son has been a champion of
destitute… & your party has always
been full of best brains --a
heritage of rich
& wealthy , elite &
cultured, aristocrats… Stephenians, LSE grads & at
least from Sriram College of
Commerce / JNU . Why do you need to ask
for so many demands from Mr Modi?
What did you do? What
was done by your GOMs & EGOMs
? Madam, were you not a part of
the abysmal policy paralysis? A
trench excavated in morning & filled up in evening , a road
made in morning & destroyed
in evening… madam, why India
ranks 132nd today in the world
in HDI ; after years of intensive
MNREGA, why there are no sanitations & drinking water in %
of our villages ; madam,
can you deny having wasted around
Rs 3 lac crore of our blood
earned money in the name of MNREGA… ?
You have done so many great revolutions ,
madam; your Sheela Dixit amassed 32 ACs in 1 house… how many houses do each of your party’s
sahzadas are holding? Since the
days of Emergency , when our current President was the FM in your late mom in law’s ministry , how much money
has been stashed in Swiss Banks
by your party affiliates?
Madam, kly understand that $ 190Bn has been invested during your regime , at an ROI of just 0.8% pa. Madam, Rs 10 lac crore of bank loans
out of Rs 60 lac crore has gone
to just 6 top business houses / families of India excl
Tata & Reliance.
Madam, in your regime , in last 6 years, $
260bn gold has come into India against a capex of just $ 588Bn .
You have done great achievements. But what
has been inflicted on
populace in return is sheer poverty
, darker poverty, your regime has
tarnished every glorious meaning
& example that Senonomics could so very well deliver….
After 10 years of UPA regime that
have sacrificed lacs of
crores of the money that genuine tax payers have given to GOI coffers, there are Rs
13 K crore holes,
HT reports
--- UP used only 46% (Rs 250 crore out of total Rs. 543 crore) of the
scheme intended to make India open defecation-free.“UP has an available balance
of Rs. 293 crore and Badaun district Rs. 1.04 crore. Adjoining districts also
have sufficient funds available. State is requested to take urgent steps in the
matter so as to ensure availability of adequate sanitation facilities
especially for women,” Sarswati Prasad, joint secretary, department of drinking
water and sanitation, wrote. “At least
65% of the rape cases in rural areas happen due to lack of toilets,” said IG
(Special Task Force) Ashish Gupta. Like Uttar Pradesh, its neighbours Madhya
Pradesh, Jharkhand and Rajasthan have
a poor sanitation record with only 30-47% spent on building toilets. The better
performing states – Arunachal Pradesh (72%), Maharashtra (70%)
and Jammu and Kashmir (64%) — are yet to utilise their money fully too.Under
NBA, begun in 1999, the centre contributes Rs. 4,600 and the state Rs. 1,400
for each toilet. Another Rs. 4,500 per toilet comes under MGNREGA.
The CAG, which has audited 14 states over
2007-12, has also said projects have not been completed even after spending Rs
4,000 crore over five years, it reported.
According to CNN-IBN, in 14
states there were 129 lakh projects worth over Rs 1.26 lakh crore that
were approved. Of this, only 30 percent has been completed.
And a whopping Rs 2,252 crore was spent on
projects that should not have been taken up under MNREGA, the auditor has
noted, according to the reports.
Bihar, Maharashtra and UP, where 46% of the
poor live, used up only 20 percent of funds.
- The highest number of ghost workers, that
is workers who exist only on paper, was to be found in Karnataka, over
1,600. Total ghost workers found in 8 states is 1,932.
- Misappropriation of funds was the highest
in Assam.
- Job cards not issued in over 12,000
households
- Delayed payment to workers but no compensation
paid.
- Incorrect maintainance of records in up
to 54 percent of gram panchayats.
- The report finds Block Development
Officers issued cheques in their own names.
- The report concludes that monitoring by
the centre is unsatisfactory
The MNREGA has been the UPA's flagship
welfare scheme that guarantees 100 days of work per rural household in a year.
While there have been reports of irregularities in the funds being disbursed
and the projects being done, the CAG's report could be an embarrassment
for the UPA government.
A
narrative from India Today caught
me into tears &
I am sharing that with you all---
Rekha Devi, a native of Mahant Maniyari
village in Bihar, opened an account with the local post office in 2008. That
was when she enrolled for work in a livelihood programme of the central
government. Over the years, she worked as a manual labourer on various projects
as part of the programme launched under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
Her wages were credited directly into her post office account. The money was
withdrawn as and when required. Everything went fine. There was one problem,
though. She didn't know about the account. Confused? So was she when she found
out about the account a few months ago.
REKHA DEVI A resident of Bihar's Mahant Maniyari village, Devi found an MNREGA job card and post office account had existed in her name since 2008 though she was unaware of it
"I first thought it was
some other Rekha Devi with the same address but even my husband's name was
correct"
|
Devi, 35, was told about the account by
social activist Sanjay Sahni, who trawled through the MNREGA website to find
out details of works undertaken in Ratnauli and Mahant Maniyari villages, in
Muzaffarpur district. "I was not aware of any such account, nor had I seen
its passbook," she says. When she approached the post office to find out
about the account and withdrawal of money the MNREGA website showed she had
apparently received, she got no response. "I do not know who opened the
account in my name," says Devi, who actually opened an account only in May
2012 when she began working on an MNREGA project to support her three children
and a husband who suffers from a mental disorder. "I thought it was some
other Rekha Devi with the same address but even my husband's name was the
same."
MNREGA is the showpiece welfare legislation
of the Congress party-led United Progressive Alliance (UPA) government. The
programme that promises to provide 100 days of manual work per year to all
rural households was launched with much fanfare in February 2006. The scheme
was an important factor that helped the UPA to retain power in 2009. But it was
marred by rampant leakages of funds and large-scale corruption. As wages were
distributed in cash based on manual entries made in muster rolls, or attendance
sheets, it was easy for anyone who could exploit the system - be it the village
headmen, local administration officials, contractors or middlemen - to siphon
off money, with each person in the implementation chain getting a fixed
percentage in the spoils. In 2008, the government decided to transfer wages
directly into the bank or post office accounts of beneficiaries. Has it helped?
Not much, says Sahni.
SURENDRA SHAH This resident of Bihar's Amrakh village worked on a road project for 40 days in 2010, after which his passbook was taken away by the village munshi. He got the passbook back in 2013. The passbook shows money was credited into and debited from his account even when he was not using it
"I argued with the munshi and got the passbook back. I never
got any money for the MNREGA work"
|
Sahni says that in 2011 he checked the
muster rolls of Ratnauli and Mahant Maniyari villages. Nearly a quarter of the
people listed in the rolls were unaware that bank or post office accounts
existed in their name and that money had been deposited and withdrawn from
these accounts. A majority 60 per cent of those listed had never even worked in
any MNREGA project. Little has changed since then. In neighbouring Vaishali
district, villagers and activists claim at least 12 to 15 per cent people are
unaware that accounts exist in their name. "Account opening is in the
hands of the post master. Connivance with village administration to open
accounts is common. Since most people are illiterate, only thumb impressions
are needed to open and access the accounts. These impressions can be of anyone
as no one ever checks them," says Sahni.
Across Bihar - and most likely in several
other states as well - a similar story is playing out. In Bihar's Muzaffarpur
and Vaishali districts, Business Today found that most job cards and account
passbooks are kept by the village strongmen. Discrepancies in deposits and
withdrawals are evident even in cases where the beneficiaries have their own
cards and passbooks. One such case is that of Madina Begum, a resident of
Mahant Maniyari village. The 50-year-old can't read or write but accesses her
own account. Her passbook shows a deposit of Rs 11,400 for a plantation work,
but she says she got only Rs 10,000 from the post office. The passbook also
shows deposit and withdrawal of Rs 5,016 and Rs 6,344, but she wasn't aware of
these transactions. "I do not know about these entries. But I do know how
many days I worked and how much I earned on each project," she says.
HADISHA
KHATUN
The resident of Mahant Maniyari village never worked on a MNREGA project. She says her passbook and job card were kept by the village mukhiya's men until recently. The passbook shows a deposit of Rs 1,400 on Sept 2, 2011, and withdrawal of the same amount a fortnight later
"The
account is in my name, so I should get the money"
|
BT also found that many MNREGA projects
exist only on paper. In many cases, money had been spent with barely any
productive assets to show for. In several cases labourers worked for 10 to 15
days but wages in their names were raised for 40 to 60 days. The additional
money likely disappeared into the hands of village and block administration
officials.
In Bhojpur district's Agarsanda panchayat, for instance, the arbitrary manner in which muster rolls and worksheets are prepared is evident by work undertaken on public holidays and festivals such as Vijay Dashmi. The rolls also show women working on festivals such as Teej, when they observe fasts through the day. Pond digging work was taken up in the flood-prone area in the rainy season, when such activities are banned.
In Vaishali village of the eponymous
district, a signboard alongside a road showed Rs 1,62,425 was spent on planting
trees as part of a MNREGA project. But the road did not have any tree.
Activists say plantation work is the easiest route to make money in MNREGA.
Why? In the case of an inquiry, the simple answer is that the plants dried.
This was also the explanation that Vaishali Block Development Officer Kumar
Patel, who had the additional charge of programme officer for MNREGA from July
2011 to January 2014, offered BT. "Plants are eaten by animals. They are
destroyed due to village rivalries. In most cases, plants dry and die as they
are not cared for by labourers."
MARRED BY LEAKAGES
Since 2006, the central government has
spent a staggering Rs 2,43,178.72 crore on MNREGA projects, the programme's
website shows. Of this, 60 per cent would have been used to pay wages, as
mandated in the scheme. It would be naïve to believe the entire amount reaches
the intended beneficiaries. Jairam Ramesh, Union Minister of Rural Development,
acknowledges the problem. "In our delivery system the leakage is more and
the coverage is less? How much money actually reaches the beneficiary is a big
question mark," he said during MNREGA Divas in New Delhi in early
February.
Estimates of leakages vary from state to state. A 2012 study by the Centre for Environment and Food Security, a non-government organisation based in New Delhi, estimated that only 27 per cent of the amount earmarked for payment as wages reached the intended beneficiaries in Bihar. Shankar Singh, a social activist from Rajasthan, expects leakages in the state to the tune of 30 to 35 per cent. In Jharkhand, activists say at least half the amount is siphoned off. A 2010 study by brokerage CLSA said that roughly 30 per cent of the central government's projected $50 billion (about Rs 310,000 crore at current exchange rates) spend on MNREGA over five years would be lost through leakages.
The Comptroller and Auditor General last
year conducted a performance audit of MNREGA for the period from April 2007 to
March 2012. It checked the scheme's implementation in 3,848 gram panchayats and
found glaring inefficiencies. Given that India has 238,617 gram panchayats,
actual losses could be much higher. R. Subrahmanyam, Joint Secretary in charge of
MNREGA at the Ministry of Rural Development, admits there are leakages but says
one should take a balanced view. He cites the example of Andhra Pradesh where
leakages are in the range of one to six per cent only.
Surjit S. Bhalla, Chairman of Oxus Investments,
an economic research and advisory firm, says less than 15 per cent funds
earmarked for welfare programmes reach the poor. He adds that, in discussions
about corruption in MNREGA, a lot of emphasis is given on leakages from wages
since they account for 60 per cent of the spending. But 40 per cent of the
total MNREGA amount is spent on procuring materials required to execute
projects. "The material budget can be siphoned off to a large extent
pretty easily in MNREGA. There are hardly any assets to show for."
CHECKS AND BALANCES
CHECKS AND BALANCES
Subrahmanyam, the ministry official, says MNREGA has multiple levels of checks to prevent corruption. These checks include conducting social audits and forming vigilance committees in each state. But he admits that in most states audits are not conducted in the proper manner. "Some cases show 100 per cent social audits and zero per cent irregularities. We know that is not possible," he says.
All villagers and social activists BT spoke
with in Bihar and Jharkhand said they had never participated in a social audit.
Mohammed Kalam, Mukhiyapati of the Vaishali gram panchayat, says that block
administration staff generally conducts the audit while sitting inside the
panchayat office and without physically verifying the work sites or interacting
with activists or labourers.
Villagers are unaware that they have a right to demand work and that the government must pay them an allowance if it cannot provide work. Activists say administration officials do not even receive application forms in many cases so that the mukhiya's favourites get jobs on paper and they share the money. A grievance redressal mechanism is also non-existent. Anil Kumar Bhagat, a social activist from Vaishali district, says false police cases were lodged against some panchayat committee members after they sought to know details of MNREGA schemes from block or district administration by filing Right to Information (RTI) requests. Bhagat filed an RTI request on October 8 last year regarding a welfare scheme in Muhammadpur panchayat of Vaishali district. The next day, the block development officer filed a first-information report against him with the police accusing him of interrupting government work and trying to extort money.
False police cases, however, is not the
biggest threat activists face. Sometimes, they pay with their life, too. Sahni,
the Muzaffarpur activist, says he and fellow RTI activist Ram Kumar Thakur in
2012 highlighted embezzlement of funds in Ratnauli village. This led to the
state's rural development department ordering a social audit. Subsequently,
Thakur was beaten up, allegedly by the village mukhiya's supporters, and the
audit was stopped mid-way. In March 2013, Thakur was shot dead. No one has yet
been arrested for the murder.
THE AADHAAR LINK
THE AADHAAR LINK
JOB CARDS
Job cards kept by a strongman in Muhammadpur panchayat of Vaishali district. Across Bihar and Jharkhand, a majority of passbooks and job card are kept by the village mukhiya's men or contractors
"How will direct transfers help? The workers do not even know
they have to keep the cards or passbooks with them" Wakil Khan, Social
Activist, Gumla, Jharkhand
|
Nearly two years ago, the government
started a pilot project in a few states, including Jharkhand, to link workers'
bank or post office accounts with their unique biometric identification Aadhaar
numbers. The aim of the exercise was to weed out corruption in MNREGA by
eliminating fake beneficiaries. Under the new system, beneficiaries depend on
business correspondents to withdraw money. These bank-appointed agents carry a
hand-held device called Micro ATM to request a withdrawal. After verifying
their identities via fingerprint checks, the correspondent gives cash to the
workers. But, this system also leaves scope for corruption, say activists in
Jharkhand. The transaction receipts the illiterate workers get from the device
are in English, so they are clueless about the details mentioned on it.
Moreover, the receipts become illegible in no time. Also, the automated voice
transaction notification from the machine is barely audible.
Gurjeet Singh, an activist with civil
society group Jharkhand NREGA Watch, says instances of business correspondents
asking for Rs 100 bribe from a group of eight to 10 workers have come to their
notice. Jharkhand Chief Secretary R.S. Sharma says, however, that the Aadhaar-linked
system, once fully operational, will allow beneficiaries to switch business
correspondents if someone is seeking bribes to disburse their wages.
USHA DEVI and ABHIJEET KUMAR The wife and son of Ram Kumar Thakur have been living in fear ever since the RTI activist was murdered in March 2013 for highlighting embezzlement of funds from welfare schemes in Ratnauli village of Bihar
"Even if panchayat
committee members seek information on welfare spending, FIRs are lodged
against them", says Anil Kumar Bhagat, RTI activist, Vaishali district,
Bihar
|
Many villagers say the new payment system
is helpful, but some complain about delays when the device does not work due to
technical problems. Civil society activists and government officials agree that
rural areas lack infrastructure such as Internet connectivity and electricity
to support the new system.
Reetika Khera, a development economist,
says Aadhaar is not sufficient to prevent corruption. She cites the example of
a pilot project based on Aadhaar to disburse subsidised food to beneficiaries
in Andhra Pradesh's East Godavari district. She says 13 per cent transactions
in the pilot happened through the manual override mechanism where a mobile
number is entered into the hand-held device and a one-time password is sent to
the phone. The transaction is completed after entering the password in the
device. "The moment there is a manual override it means the whole system
is collapsing."
Critics also say Aadhaar cannot prevent
fraud in cases where money is deposited into the accounts of people who enroll
for MNREGA projects but don't actually work.
THE AADHAAR-LINKED PAYMENT SYSTEM A business correspondent helps MNREGA workers at a service centre in Dohakatu panchayat, Ramgarh district, Jharkhand, withdraw wages from their Aadhaar-linked bank accounts using a hand-held device.
"A new set of intermediaries will be created in the form of
business correspondents and middlemen can connive with them", says
Balram, Activist with Jharkhand MNREGA Watch.
|
Officials at Unique Identification
Authority of India (UIDAI), which issues Aadhaar cards and maintains a national
database, admit there is currently no way to verify if the beneficiary who gets
the money has actually worked. But they also say that Aadhaar has weeded out
several fake and duplicate beneficiary accounts. Think-tank National Institute
of Public Finance and Policy estimates that five per cent of the leakages can
be plugged through wage disbursement using Aadhaar-enabled bank accounts.
Ashok Pal Singh, Deputy Director General,
UIDAI, says the best use of Aadhaar will call for process engineering from top
to bottom. He says that MNREGA job cards should be issued on biometric
authentication and attendance at worksites be marked with biometrics. The job
cards and attendance sheets will then capture the work hours and days and send
payment schedules automatically. Money can then be credited directly into the
accounts of the beneficiaries and withdrawn through biometric authentication.
"It will minimise the role of middlemen and muster rolls cannot be
fudged," he says. But implementing such a mammoth system requires a lot of
financial and technical resources as well as trained manpower. Above all, it will
require political will. That's something which isn't easy to find.
"The purpose of doling out subsidies
should be to ensure productive assets. The current subsidy system in India does
not create capital. If you look at the P&L of the government, a majority of
its income is spent on subsidies and entitlement benefits. There is little
money left to invest in infrastructure, healthcare and defence. That is the
reason why India runs a high fiscal
deficit," Nitin Jain said.
deficit," Nitin Jain said.
Vidya Mahambare, Principal Economist at CRISIL Research told Economictimes.com that both diesel and LPG subsidies can be categorised as 'wasteful expenditure'. "In the larger context they do not create productive capacity. Most subsidies are not well targeted and the government should be able to convey why they need to be done away with," Mahambare said. According to Mythili, there is a need to do away with subsidies on LPG cylinders. "LPG as a fuel is consumed by the middle income groups. They can afford to pay higher prices and certainly do not need subsidies from the government's end," she told Economictimes.com.
Under the APMC Act, farmers can sell their produce only to traders and middlemen. This leaves them at the mercy of traders and middlemen who play with the prices of essential commodities and form cartels at mandis to fix prices. An amendment to the Act, which delists fruit and vegetables, would allow farmers to sell their produce directly to retailers and consumers. This should lead to a fall in prices of these products. However, doing away with APMC would take away the source of income of lakhs of traders and middlemen who have been loyal supporters of BJP since its inception.
With the Badaun rape and murder incident
underscoring the issue of lack of sanitation facilities in villages, the Union
rural development ministry on Tuesday asked the UP government to utilise the
funds under Nirmal Bharat Abhiyan (NBA). UP used only 46% (Rs 250 crore out of
total Rs. 543 crore) of the scheme intended to make India open
defecation-free.“UP has an available balance of Rs. 293 crore and Badaun
district Rs. 1.04 crore. Adjoining districts also have sufficient funds
available. State is requested to take urgent steps in the matter so as to
ensure availability of adequate sanitation facilities especially for women,”
Sarswati Prasad, joint secretary, department of drinking water and sanitation,
wrote.Two minor girls who were cousins were abducted, raped and then murdered
in village Katara (Badaun district) on the intervening night of May 26-27 when
they had stepped out of their house to relieve themselves. The incident put the
focus on the lack of sanitation facilities in rural UP besides leaving United
Nations secretary general Ban Ki Moon ‘appalled’.Any woman defecating in the
open is vulnerable and government must acknowledge the issue,” said Bindeshwar
Pathak, founder of Sulabh International that specialises in low-cost
sanitation. The organisation has implemented plan to make toilet for each house
in Katara.
Official statistics reveal only 1.17 crore of 3.29 crore households in UP have toilet facility, forcing 14.82% people in urban areas and 77.13% in rural areas to defecate in the open. “At least 65% of the rape cases in rural areas happen due to lack of toilets,” said IG (Special Task Force) Ashish Gupta.Like Uttar Pradesh, its neighbours Madhya Pradesh, Jharkhand and Rajasthan have a poor sanitation record with only 30-47% spent on building toilets. The better performing states – Arunachal Pradesh (72%), Maharashtra (70%) and Jammu and Kashmir (64%) — are yet to utilise their money fully too.Under NBA, begun in 1999, the centre contributes Rs. 4,600 and the state Rs. 1,400 for each toilet. Another Rs. 4,500 per toilet comes under MGNREGA.
NEW DELHI: The Centre has decided to give Rs 12,000 per household to the poor for working on building their homes, a measure that signifies the biggest convergence of two social welfare schemes and could provide a boost to both rural employment and consumption at a time when the monsoon is expected to be below average. Two of the biggest welfare schemes - the Indira Awas Yojana (IAY) and the Mahatma Gandhi National Rural Employment Guarantee Scheme. .."A textile industry body had suggested that people enrolled in the National Rural Employment Guarantee programme would be given 200 days of casual work by them, instead of the 100 days given by the government. Though this would have led to better output, it was rejected," said Shriram.
The government wants to set up new
transmission lines and set up solar powered micro-grids to connect villages
where regional power grids are unable to reach. India's installed power
generation capacity increased to 2.45 lakh mw from 1.75 lakh mw in March 2011. However, penetration of power has not grown at the same
pace. So far, out of 5.94 lakh villages, 5.72 lakh have been electrified while 3.6 per cent or 21,318 villages
are without power. Centre has been implementing rural electricity program…..
NEW DELHI: The new government kicked into gear this week, clearing billions of dollars worth of long-delayed defence projects, including a big Navy base, as well as approving the scaling-up of one of the country's biggest dams.The decision to give the projects the go-ahead despite concern about their environmental and social impact signals Prime Minister Narendra Modi's no-nonsense approach to issues he considers to be important for national security.The clearances were made over several days and were the first major decisions from the government that swept to power on May 16 on promises of getting Asia's third-largest economy moving and building a stronger country.
Environment minister Prakash Javadekar said the government could not compromise on efforts to build military and civil infrastructure on the border with China as well the west-coast naval base in as an alternative to crowded Mumbai port.As well as the $2 billion extension to the Karwar base Karnataka, Javadekar approved a radar station in the Andaman and Nicobar islands in the Bay of Bengal.A defence source said he also planned to fast-track road building along the disputed border with China. Javadekar said China had built infrastructure in the Coco Islands, which are controlled by Myanmar and just to the north of the Andamans.
"If you have a situation where China is sitting in front and we won't do anything, how can you run the country like this," he said in comments made available to Reuters on Friday.
The radar station proposal had earlier been turned down because the environment ministry under the last government saw a threat to the Narcondam hornbill, an endangered bird species.The radar on Narcondam island is one of 18 that the military has planned, running north to south along the Andamans, which straddle the strategic seaway leading to the Malacca Straits.
This year, India's patchy radar meant it was unable to say whether missing Malaysia Airlines Flight MH370 had passed over the islands.Modi met China's foreign minister this week and is likely to visit Beijing this year, but he is also keen to quickly build up border defences that have fallen far behind India's neighbour.The 63-year-old's first foreign foray will be on Sunday to tiny Bhutan, a Himalayan buffer between India and China that has long been a close Indian military and diplomatic ally.
Higher dam
Modi's Bharatiya Janata Party has promised to end a prolonged period of paralysis at the defence ministry where weapons acquisitions and infrastructure contracts were frozen because of fear of corruption scandals.
Javadekar said he had also cleared the second phase of a naval base in Karwar, on the west coast, that had stalled because environmental activists had warned the ecology of the Western Ghats mountains would be affected.
The base is intended to take the load off Mumbai port, used by the Navy and civilian ships. The Navy has also said it wanted a more secure base to berth its latest aircraft carrier.
"Mumbai is a target. We need an alternative. It is of strategic importance," he said.
The environment ministry is also trying to fast-track roads and defence projects classified as strategic.
Radars and telecommunications projects within 100km (62 miles) of the 4,000km (2,500-mile) border with China, large parts of which are disputed, will be put on an automatic approval list, a defence source said.
As well as the military projects, the government on Thursday approved a long-stalled proposal to raise the height of the Narmada dam to 138.73 metres (455 feet), from 121.92 metres (400 feet), so more water will be available for drinking, irrigation and power generation.
The project will benefit Modi's home state of Gujarat. As chief minister of the state, he campaigned for approval to build the dam higher to protect farmers from drought.
Activist Medha Patkar, who has long campaigned against the project, said about 250,000 people will be displaced.
She said the government appeared to have rushed into the decision without looking at the social and environmental impact as required by law.
"How could the government deal with such a grave situation and go ahead just because Mr Narendra Modi is the Prime Minister?" she said.
The scent of 'black money' is in the air
again. At the Supreme Court's order, Modi sarkar has set up a Special Investigation
Team to look into cases of illegal outflow of money to foreign havens.
Astronomical figures of treasure hoards hidden abroad have been bandied around, especially in the recent elections. To understand what black money is and how it can be recovered, Subodh Varma spoke to India's pre-eminent expert on the black economy, Prof Arun Kumar of Jawaharlal Nehru University, Delhi.
How do you define 'black money'?
Actually , 'black money' is a tiny component of the huge 'black economy'. All unreported incomes whether by legal or illegal means, and their subsequent use in consumption or investment forms the 'black economy'. The part of this economy which is available as 'money' is called black money . Often black money is taken to mean money generated through illegal activities like bribery. That's just one part of black money. If a private tutor or a doctor earns some income, that's not illegal. But when it is not included in his income returns it becomes `black'. At the societal level, this is a system, it's institutionalized. A sugar mill owner will under weigh the sugar cane, the juice and the crystalline sugar, and also bribe excise officials to report less production. So he gets extra unreported income at every stage of production and distribution.
What is the measure of this 'black economy' in India and how much of it is stashed away in foreign tax havens?
My estimate is that more than 50% of India's economy is black. About half of this is consumption while the remaining half is savings.
Of these savings, about 20% is taken out of the country . That means, of the total black economy , about 10% is in foreign banks. Some is consumed there (yachts, houses, vacations) and some is routed back to India through various means including hawala, or through the Mauritius route. If all the money that has been illegally taken out were to be invested back in India, the gain would be equivalent to $2 trillion (about Rs 120 lakh crore). This is not the amount of money stashed abroad — it is the opportunity cost of that.
How can the foreign-based black money be retrieved?
First of all, I think going after just the foreign component of black money is a diversion. The bulk of the money is right here in the country! It is very difficult to get money out of foreign tax havens unless someone has been really stupid. Let me clarify that all Indians with foreign accounts are not criminals. If it is untaxed, unreported income then it needs to be tracked and brought to book. No amount of agreements to avoid double taxation or infor mation sharing will yield information on real account holders. There are devious means by which money is transferred through several layers of shell companies. If you ask a Swiss bank, they might tell you the 'names' they have but these are not the real people. It will require a great deal of meticulous work here to get the right persons. This is what the US did in the case of its citizens who had stashed money in UBS. They prepared a case in US and presented it to the Swiss. That's what India should do.
The only other way is to wait for somebody to steal the data as happened in the case of LGT — the Lichtenstein based trust.
The present government seems to be very active in pursuing black money. Will this yield results?
Since 1948, about 40 committees, commissions, etc have looked at the problem from different angles. There have been raids, there have been amnesty schemes. The result is zero. My feeling is that the Special Investigation Team (SIT) set up by the government under Supreme Court pressure will be of limited use.
It is going to look at existing cases and go by what is offered to it - nothing more. The problem is that there is a triad of vested interests that runs everything in the country -business, politicians and the executive arm of the government. The Radia tapes have shown a glimpse of this nexus. This triad is the main beneficiary of the black economy . So, there has never been a political will to tackle the black economy in the past, and I doubt that the present government has it. Otherwise, Modi can order a crackdown on all hawala operators and all other routes of illegal money flows. Only pressure from people's movements will force the government to crack down on the black economy .
Would the black economy cool down if taxes were lowered?
This is like saying that if the red light was not there you would not be charged with jumping it! Remember, India has one of the lowest direct tax to GDP ratios in the whole world. Chidambaram used to say that our tax-GDP ratio has improved. But that's because of the enormous increase in corporate profits. Calculations show that just the top 0.1% of the population earns more than the bottom 55%. This is because of deregulation and concessions in taxes. Yet the black economy is flourishing. "
Astronomical figures of treasure hoards hidden abroad have been bandied around, especially in the recent elections. To understand what black money is and how it can be recovered, Subodh Varma spoke to India's pre-eminent expert on the black economy, Prof Arun Kumar of Jawaharlal Nehru University, Delhi.
How do you define 'black money'?
Actually , 'black money' is a tiny component of the huge 'black economy'. All unreported incomes whether by legal or illegal means, and their subsequent use in consumption or investment forms the 'black economy'. The part of this economy which is available as 'money' is called black money . Often black money is taken to mean money generated through illegal activities like bribery. That's just one part of black money. If a private tutor or a doctor earns some income, that's not illegal. But when it is not included in his income returns it becomes `black'. At the societal level, this is a system, it's institutionalized. A sugar mill owner will under weigh the sugar cane, the juice and the crystalline sugar, and also bribe excise officials to report less production. So he gets extra unreported income at every stage of production and distribution.
What is the measure of this 'black economy' in India and how much of it is stashed away in foreign tax havens?
My estimate is that more than 50% of India's economy is black. About half of this is consumption while the remaining half is savings.
Of these savings, about 20% is taken out of the country . That means, of the total black economy , about 10% is in foreign banks. Some is consumed there (yachts, houses, vacations) and some is routed back to India through various means including hawala, or through the Mauritius route. If all the money that has been illegally taken out were to be invested back in India, the gain would be equivalent to $2 trillion (about Rs 120 lakh crore). This is not the amount of money stashed abroad — it is the opportunity cost of that.
How can the foreign-based black money be retrieved?
First of all, I think going after just the foreign component of black money is a diversion. The bulk of the money is right here in the country! It is very difficult to get money out of foreign tax havens unless someone has been really stupid. Let me clarify that all Indians with foreign accounts are not criminals. If it is untaxed, unreported income then it needs to be tracked and brought to book. No amount of agreements to avoid double taxation or infor mation sharing will yield information on real account holders. There are devious means by which money is transferred through several layers of shell companies. If you ask a Swiss bank, they might tell you the 'names' they have but these are not the real people. It will require a great deal of meticulous work here to get the right persons. This is what the US did in the case of its citizens who had stashed money in UBS. They prepared a case in US and presented it to the Swiss. That's what India should do.
The only other way is to wait for somebody to steal the data as happened in the case of LGT — the Lichtenstein based trust.
The present government seems to be very active in pursuing black money. Will this yield results?
Since 1948, about 40 committees, commissions, etc have looked at the problem from different angles. There have been raids, there have been amnesty schemes. The result is zero. My feeling is that the Special Investigation Team (SIT) set up by the government under Supreme Court pressure will be of limited use.
It is going to look at existing cases and go by what is offered to it - nothing more. The problem is that there is a triad of vested interests that runs everything in the country -business, politicians and the executive arm of the government. The Radia tapes have shown a glimpse of this nexus. This triad is the main beneficiary of the black economy . So, there has never been a political will to tackle the black economy in the past, and I doubt that the present government has it. Otherwise, Modi can order a crackdown on all hawala operators and all other routes of illegal money flows. Only pressure from people's movements will force the government to crack down on the black economy .
Would the black economy cool down if taxes were lowered?
This is like saying that if the red light was not there you would not be charged with jumping it! Remember, India has one of the lowest direct tax to GDP ratios in the whole world. Chidambaram used to say that our tax-GDP ratio has improved. But that's because of the enormous increase in corporate profits. Calculations show that just the top 0.1% of the population earns more than the bottom 55%. This is because of deregulation and concessions in taxes. Yet the black economy is flourishing. "
The funds held by Indians with banks in
Switzerland rose by over 40 per cent during 2013, from about 1.42 billion Swiss
francs at the end of previous year, as per the latest data released today by
the country's central banking authority Swiss National Bank (SNB).In contrast,
the money held in Swiss banks by their foreign clients from across the world
continued to decline and stood at a record low of 1.32 trillion Swiss francs
(about $1.56 trillion or over Rs 90 lakh crore) at the end of 2013.
During 2012, the Indians' money in Swiss banks had fallen by over one-third to a record low level.The total Indian money held in Swiss banks included 1.95 billion Swiss francs held directly by Indian individuals and entities, and another 77.3 million Swiss francs through 'fiduciaries' or wealth managers at the end of 2013. There are a total of 283 banks in Switzerland, down from nearly 300 at the beginning of 2013. This include two banks (UBS and Credit Suisse) classified as big banks, while there are 93 foreign-controlled banks operating in the country. A total of close to 1.25 lakh staff work at these banks.
According to the SNB data, funds held by the US entities in Swiss banks also rose during 2013 -- from 189 billion Swiss
francs to 193 billion Swiss francs -- despite a major crackdown by the American authorities against the Swiss banks.However, a number of countries saw their exposure to Swiss banks decline during the year, resulting in the overall funds held by foreign clients in Switzerland's banking institutions decline to 1.32 trillion Swiss francs, from 1.39 trillion .. The quantum of Indian funds in Swiss banks stood at a record high level of 6.5 billion Swiss francs at the end of 2006, but it declined by more than 4 billion
Swiss francs after four straight years of fall till 2010.
For clients across the world, total funds in Swiss banks stood at a record high level of 2.9 trillion Swiss francs at the end of 2005, while the all-time high level in the US currency was recorded in 2007 at $2.4 trillion. As per SNB data, funds held by Indians directly in the Swiss banks rose by over 600 million Swiss francs in 2013 to 1.95 billion Swiss francs (Rs 13,650
crore).On the other hand, the funds held through 'fiduciaries' fell marginally to 77.3 million Swiss francs (about Rs 550 crore) in 2013 -- marking the seventh straight year of fall.Indians' direct exposure to Swiss banks stood at a record high level of about
five billion Swiss francs in 2006, while the amount held through fiduciaries at that time was close to 1.5 billion Swiss francs.
During 2012, the Indians' money in Swiss banks had fallen by over one-third to a record low level.The total Indian money held in Swiss banks included 1.95 billion Swiss francs held directly by Indian individuals and entities, and another 77.3 million Swiss francs through 'fiduciaries' or wealth managers at the end of 2013. There are a total of 283 banks in Switzerland, down from nearly 300 at the beginning of 2013. This include two banks (UBS and Credit Suisse) classified as big banks, while there are 93 foreign-controlled banks operating in the country. A total of close to 1.25 lakh staff work at these banks.
According to the SNB data, funds held by the US entities in Swiss banks also rose during 2013 -- from 189 billion Swiss
francs to 193 billion Swiss francs -- despite a major crackdown by the American authorities against the Swiss banks.However, a number of countries saw their exposure to Swiss banks decline during the year, resulting in the overall funds held by foreign clients in Switzerland's banking institutions decline to 1.32 trillion Swiss francs, from 1.39 trillion .. The quantum of Indian funds in Swiss banks stood at a record high level of 6.5 billion Swiss francs at the end of 2006, but it declined by more than 4 billion
Swiss francs after four straight years of fall till 2010.
For clients across the world, total funds in Swiss banks stood at a record high level of 2.9 trillion Swiss francs at the end of 2005, while the all-time high level in the US currency was recorded in 2007 at $2.4 trillion. As per SNB data, funds held by Indians directly in the Swiss banks rose by over 600 million Swiss francs in 2013 to 1.95 billion Swiss francs (Rs 13,650
crore).On the other hand, the funds held through 'fiduciaries' fell marginally to 77.3 million Swiss francs (about Rs 550 crore) in 2013 -- marking the seventh straight year of fall.Indians' direct exposure to Swiss banks stood at a record high level of about
five billion Swiss francs in 2006, while the amount held through fiduciaries at that time was close to 1.5 billion Swiss francs.
Deposits made by Indians in Swiss banks
went up by over 40% last year, according to Switzerland’s central bank on
Thursday.While
the nature of these funds -- and whether they were channelled out from India
illegally -- was not ascertained, the latest data may raise concerns for a new
government that made the retrieval of black money a campaign peg and set up a
high-power panel for it in one of its initial decisions.Indians now have a
total of 2 billion Swiss francs (nearly `14,000 crore) parked in Swiss
accounts, according to the Zurich-based Swiss National Bank. They were also the
only ones who funnelled more money into Swiss accounts in 2013, while deposits
from other foreign nationals came down to record lows.In 2012, deposits from
Indians had fallen by a third.In total, around 1.32 trillion Swiss francs
(about $1.56 trillion or over 90 lakh crore) were deposited in Swiss accounts
in 2013.The total Indian money held in Swiss banks included 1.95 billion Swiss
francs held directly by Indian individuals and entities, and another 77.3
million Swiss francs through 'fiduciaries' or wealth managers at the end of
2013.The funds, described by SNB as 'liabilities' of Swiss banks or 'amounts
due to' their clients, are the official figures disclosed by the Swiss
authorities and do not indicate towards the quantum of the much-debated alleged
black money held by Indians in the safe havens of Switzerland.SNB's official
figures also do not include the money that Indians or others might have in
Swiss banks in the names of entities from different countries.The Swiss
National Bank said that the focus of banks in the country continues to shift
away from foreign clients to domestic business, as reflected in the decline in
their overall amounts due to overseas customers.There are a total of 283 banks
in Switzerland, down from nearly 300 at the beginning of 2013. This include two
banks (UBS and Credit Suisse) classified as big banks, while there are 93
foreign-controlled banks operating in the country. While a new treaty between
India and Switzerland for sharing of information on issues related to tax
crimes on a prospective basis, Switzerland has also agreed to a limited retrospective
clause for such information exchange in case of India.While India has been
stepping up pressure for data on alleged illicit funds parked in Swiss banks,
Switzerland has said it cannot positively respond to requests which are beyond
the ambit of bilateral tax treaty.The Swiss government's latest response came
against the backdrop of former finance minister P Chidambaram shooting off
numerous letters to his Swiss counterpart raising concerns about the Alpine
nation denying information on alleged unaccounted money held by Indians in
banks in Switzerland. Subsidies are very important in India, where the economic
structure is disparate. No country can afford such disparity," Nitin Jain,
CEO Capital Markets at EdelweissBSE 0.98 % told Economictimes.com. "However,
we need targeted subsidies. The existing subsidy system is plagued with
corruption and
ineffective distribution," he said.
ineffective distribution," he said.
Prime Minister Narendra Modi responded to
President Pranab Mukherjee’s address in Parliament, saying that his government will
fulfill the promises made in the speech. Rediff.com brings you some of the highlights of the speech.
1) Why don't we convert the laboratories in
schools in India during summer holidays into a soil testing laboratories where
agricultural university students can work during their vacations.
Do you think he can do it? Cast your vote.
2) We tried Soil Health Card in Gujarat, it
can be replicated elsewhere, too, says Modi. Can't we give this card to every
farmer in India?
Do you think he can do it? Cast your vote.
3) The technology must move from the
laboratory to land. We also have to increase the productivity of the land. We
have not been able to increase the protein content in pulses yet.
Will he be able to turn India around? Cast
your vote
4) Should government only be for some
educated people? Government should be for the poor. The rich can educate their
children or getting medical help easily. Where will the poor go? Only the
government can help them, listen to them and live for them.
Do you think he will fulfil his promises?
Cast your vote.
5) It is our responsibility to changes the
lives of farmers and villagers. We have to provide them modern facilities, so
that villages can contribute to the country’s progress, through electricity,
broadband connection.
Will he be able to turn India around? Cast
your vote
6) We are so fortunate that we are in the
generation where India is the youngest country in the world. China is growing
older day by day when it comes to skilled labour and we are younger. Hence, all
the countries are looking to us. We have an image of Scam India. We need to
change that to Skilled India.
Do you think he can do it? Cast your vote.
7) We have to stop politicising rape. We
are playing with the dignity of women. Protecting women should be the priority
of the people of this country.
Do you think he can do it? Cast your vote.
8) We should ensure that everyone in this
country should have the basic ameneties -- housing, electricity, running water
and proper sanitation.
Will he turn India around? Cast your vote.
9) Mahabharata is over, but the people have
never wanted Pandavas to lose. Victory teaches us a lot, including humility. I
assure this House that we will never become arrogant. Regardless of our
numbers, I do not want to move ahead without all of you. Not numbers, we want
consensus.
Will Modi be able to do it? Cast your vote.
10) I welcome the talk when people say that
Tamil Nadu is better than Gujarat. I want such competition between two states.
I really want to hear that other states have left Gujarat behind. So, I think,
this is the one contribution the Gujarat model has made. I reiterate my resolve
to work for the welfare of all 125 crore Indians, and with this end my reply to
the debate.
Will he be able to bring about change? Cast
your vote
Need to change from ‘scam India’ to
‘skilled India’: Modi
Will leave no stone unturned in
implementing roadmap outlined by the President in his address, said Prime
Minister Narendra Modi.
Yahoo India – Wed 11 Jun, 2014
NEW DELHI: Prime Minister Narendra Modi in
his maiden speech in the Lok Sabha said Wednesday that his government would
"leave no stone unturned to fulfil" the promises outlined by
President Pranab Mukherjee in his address.
In his reply in the Lok Sabha to the debate on motion of thanks on the president's address, Modi said there were many who voiced doubts if the high promises spelt out in the president's address could be fulfilled.
Giving the example of his time as Gujarat chief minister when he lived up to the promise of providing 24-hour electricity across the state, Modi said: "It is understood that people will have doubts... But I assure this house that the path mentioned by the president, we will leave no stone unturned to fulfil them."
"For us, the president's address is part of tradition... The words are like a divine address and to fulfill them it will be our endeavour, and it will also inspire us to work."
Need to change from ‘scam India’ to ‘skilled India’
· We have an image of Scam India. We need to change that to Skilled India. Need to focus on skill development; decisions have to be taken with great courage.
· In the coming days, manpower would be needed. We should prioritise this. China is growing old, we are getting younger. Hence, all the countries are looking at us.
· We are so fortunate that we are in the generation where India is the youngest country in the world. China is growing older day by day when it comes to skilled labour and we are younger. Hence, all the countries are looking to us.
· I am not blaming any government, all I am saying is that the situation has not changed so far.
· It is the misfortune of our country. We ask our youth, what is your education and they say I am a graduate, an MBA -- but where is the skill? Can't we focus on skill development?
· We see people doing cycle repairing for three generations. How can we change this? If one section of the society is weak, how can society as a whole be strong? We have to empower society.
Modi turns emotional on rapes
· Turning emotional while talking about crimes against women in the country, the prime minister said incidents such as the Pune techie’s murder, Manali tragedy, the rapes in Uttar Pradesh, they make us introspect. The government has to act strong. I plead to the state governments that we should stop analysing these rape incidents. We have to stop belittling the dignity of our sisters and mothers.
We need to empower the poor
· We will empower the poor to enable them to fight poverty and come out of it.
· We are sincerely committed to bring down prices; it is our collective responsibility to ensure nobody sleeps hungry.
· Country needs real-time data on agri products to deal with price rise.
· Govt has to take strong action against incidents of violence against women like the recent one in UP.
· Security and respect for women should be the priority of all 125 crore people.
Real-time data is the need of the hour
· Real-time data is the need of the hour using India's strength as an IT power.
· If we have real-time data for agro products, the government would know where the agro product is needed most, and hence, act accordingly.
· The sooner we introduce technology in agriculture, the better, he said.
· We have succeeded in increasing the sugar content in sugarcane, but not in increasing protein content in our pulses. This is a challenge before us.
· The technology must move from the laboratory to land. We also have to increase the productivity of the land. We have not been able to increase the protein content in pulses yet.
We need develop the North-East region
· The dream is to make the entire North-East into an organic region.
· We tried Soil Health Card in Gujarat, it can be replicated elsewhere, too. Can't we give this card to every farmer in India?
· Why don't we convert the laboratories in schools in India during summer holidays into a soil testing laboratories where agricultural university students can work during their vacations.
· Our dream is that the poor man's chulha must be lit every evening.
PM invokes Mahatma Gandhi
· Invoking Mahatma Gandhi, the prime minister said that the need of the hour is another people’s movement, a su-raj andolan.
· We should ensure that everyone in this country should have the basic amenities -- housing, electricity, running water and proper sanitation.
· Responding to the jibe made by Leader of Opposition Mallikarjun Kharge that the Congress, like Pandavas, maybe few in number but won't be intimidated by a numerically superior opponent, Modi said we know that like the Pandavas, we need to be humble and will need to take along everyone.
‘I welcome it when people say TN is better than Gujarat’
· The prime minister said: I welcome the talk when people say that Tamil Nadu is better than Gujarat. I want such competition between two states. I really want to hear that other states have left Gujarat behind. So, I think, this is the one contribution the Gujarat model has made.
· I reiterate my resolve to work for the welfare of all 125 crore Indians, and with this end my reply to the debate.
In his reply in the Lok Sabha to the debate on motion of thanks on the president's address, Modi said there were many who voiced doubts if the high promises spelt out in the president's address could be fulfilled.
Giving the example of his time as Gujarat chief minister when he lived up to the promise of providing 24-hour electricity across the state, Modi said: "It is understood that people will have doubts... But I assure this house that the path mentioned by the president, we will leave no stone unturned to fulfil them."
"For us, the president's address is part of tradition... The words are like a divine address and to fulfill them it will be our endeavour, and it will also inspire us to work."
Need to change from ‘scam India’ to ‘skilled India’
· We have an image of Scam India. We need to change that to Skilled India. Need to focus on skill development; decisions have to be taken with great courage.
· In the coming days, manpower would be needed. We should prioritise this. China is growing old, we are getting younger. Hence, all the countries are looking at us.
· We are so fortunate that we are in the generation where India is the youngest country in the world. China is growing older day by day when it comes to skilled labour and we are younger. Hence, all the countries are looking to us.
· I am not blaming any government, all I am saying is that the situation has not changed so far.
· It is the misfortune of our country. We ask our youth, what is your education and they say I am a graduate, an MBA -- but where is the skill? Can't we focus on skill development?
· We see people doing cycle repairing for three generations. How can we change this? If one section of the society is weak, how can society as a whole be strong? We have to empower society.
Modi turns emotional on rapes
· Turning emotional while talking about crimes against women in the country, the prime minister said incidents such as the Pune techie’s murder, Manali tragedy, the rapes in Uttar Pradesh, they make us introspect. The government has to act strong. I plead to the state governments that we should stop analysing these rape incidents. We have to stop belittling the dignity of our sisters and mothers.
We need to empower the poor
· We will empower the poor to enable them to fight poverty and come out of it.
· We are sincerely committed to bring down prices; it is our collective responsibility to ensure nobody sleeps hungry.
· Country needs real-time data on agri products to deal with price rise.
· Govt has to take strong action against incidents of violence against women like the recent one in UP.
· Security and respect for women should be the priority of all 125 crore people.
Real-time data is the need of the hour
· Real-time data is the need of the hour using India's strength as an IT power.
· If we have real-time data for agro products, the government would know where the agro product is needed most, and hence, act accordingly.
· The sooner we introduce technology in agriculture, the better, he said.
· We have succeeded in increasing the sugar content in sugarcane, but not in increasing protein content in our pulses. This is a challenge before us.
· The technology must move from the laboratory to land. We also have to increase the productivity of the land. We have not been able to increase the protein content in pulses yet.
We need develop the North-East region
· The dream is to make the entire North-East into an organic region.
· We tried Soil Health Card in Gujarat, it can be replicated elsewhere, too. Can't we give this card to every farmer in India?
· Why don't we convert the laboratories in schools in India during summer holidays into a soil testing laboratories where agricultural university students can work during their vacations.
· Our dream is that the poor man's chulha must be lit every evening.
PM invokes Mahatma Gandhi
· Invoking Mahatma Gandhi, the prime minister said that the need of the hour is another people’s movement, a su-raj andolan.
· We should ensure that everyone in this country should have the basic amenities -- housing, electricity, running water and proper sanitation.
· Responding to the jibe made by Leader of Opposition Mallikarjun Kharge that the Congress, like Pandavas, maybe few in number but won't be intimidated by a numerically superior opponent, Modi said we know that like the Pandavas, we need to be humble and will need to take along everyone.
‘I welcome it when people say TN is better than Gujarat’
· The prime minister said: I welcome the talk when people say that Tamil Nadu is better than Gujarat. I want such competition between two states. I really want to hear that other states have left Gujarat behind. So, I think, this is the one contribution the Gujarat model has made.
· I reiterate my resolve to work for the welfare of all 125 crore Indians, and with this end my reply to the debate.
# I am a newcomer in the House, forgive my
mistakes.
# Everything thing will be done to implement the agenda outlined by the president.
# Will leave no stone unturned in implementing roadmap outlined by the President in his address.
# We will empower the poor to enable them to fight poverty and come out of it.
# The government should work for the upliftment of the poor.
# Education is the tool to eradicate poverty. The govt’s agenda is clear – fight poverty with a new vigour.
# I am not here to criticise any government.
# There is immense potential in our villages. We have to tap it by connecting with information highway.
# Time has come for India to stand tall.
# We are sincerely committed to bring down prices; it is our collective responsibility to ensure nobody sleeps hungry.
# Country needs real-time data on agri products to deal with price rise.
# Govt has to take strong action against incidents of violence against women like the recent one in UP.
# Security and respect for women should be the priority of all 125 crore people.
# The faster we get technology into agriculture we will stand to reap the benefits sooner.
# Women’s safety should be the top most priority of the country.
# Have to change our image as “Scam India” to “Skilled India.” We have to focus on skill development.
# Mere degrees will not help. Have to nurture skills of our youth.
# There is manpower requirement all over the world. Can’t we can fill that gap?
#There is no improvement in the conditions of Muslims. We are bound to work for their upliftment.
# The North East will be developed as a hub for organic products.
# We have to convert development as mass movement like Mahatma Gandhi freedom struggle.
# We have to do focussed activity to change lives of Muslims; they cannot be left behind in development.
# We should respect the best models for development from states.
# There should be a healthy competition among states to better on development index.
# Modi to Oppn: I don’t want to move forward without you, I don’t want to move ahead on basis of numbers but on the basis of collectivity.
# We don’t believe in big brother attitude towards states; We believe in Cooperative Federalism.
# There should be competition among states for development; I want to hear states saying they have left Gujarat behind.
# Everything thing will be done to implement the agenda outlined by the president.
# Will leave no stone unturned in implementing roadmap outlined by the President in his address.
# We will empower the poor to enable them to fight poverty and come out of it.
# The government should work for the upliftment of the poor.
# Education is the tool to eradicate poverty. The govt’s agenda is clear – fight poverty with a new vigour.
# I am not here to criticise any government.
# There is immense potential in our villages. We have to tap it by connecting with information highway.
# Time has come for India to stand tall.
# We are sincerely committed to bring down prices; it is our collective responsibility to ensure nobody sleeps hungry.
# Country needs real-time data on agri products to deal with price rise.
# Govt has to take strong action against incidents of violence against women like the recent one in UP.
# Security and respect for women should be the priority of all 125 crore people.
# The faster we get technology into agriculture we will stand to reap the benefits sooner.
# Women’s safety should be the top most priority of the country.
# Have to change our image as “Scam India” to “Skilled India.” We have to focus on skill development.
# Mere degrees will not help. Have to nurture skills of our youth.
# There is manpower requirement all over the world. Can’t we can fill that gap?
#There is no improvement in the conditions of Muslims. We are bound to work for their upliftment.
# The North East will be developed as a hub for organic products.
# We have to convert development as mass movement like Mahatma Gandhi freedom struggle.
# We have to do focussed activity to change lives of Muslims; they cannot be left behind in development.
# We should respect the best models for development from states.
# There should be a healthy competition among states to better on development index.
# Modi to Oppn: I don’t want to move forward without you, I don’t want to move ahead on basis of numbers but on the basis of collectivity.
# We don’t believe in big brother attitude towards states; We believe in Cooperative Federalism.
# There should be competition among states for development; I want to hear states saying they have left Gujarat behind.
In one illustration of this, he said that he did not consider “focused activity” for the welfare of Muslims as “appeasement” and advocated the need for the welfare of “all sections.” Today, he identified Muslim backwardness. “Even the third generation of Muslim brothers, whom I have seen since my young days, are continuing with their cycle repairing job. Why does such misfortune continue? We will have to undertake focus activity to bring about change in their lives. We will have to bring such programmes. I do not view such programmes within the prism of appeasement. I see them to bring about a change in their lives. No body can be called healthy if one of its organs is disabled. All organs of the human body needed to be fit in order for a person to be healthy. Similarly, all sections (organs) of the society need to empowered,” Modi said.
This is a significant change in his earlier remarks on the subject where he has said that poverty was the common enemy of both Hindu and Muslim and that he never saw religion in his “India First” view of secularism. Replying to the motion of thanks on President’s speech, Modi assured the country that he would govern with a spirit of collectivity with political rivals and state governments and said that aspiration for development should be tapped into a “mass movement.”
To critics of his “Gujarat model,” he said that this was, effectively, a model that provides for regional variations and “cooperative federalism” rather than a top-down imposition.
“We are not going to adopt a ‘big brother’
attitude that looks down upon you (states) and behaves as if we (Centre) are
offering crumbs…We collectively want to take the country forward. That is why
we talk about cooperative federalism,” Modi said assuring the regional parties
ruling different states across the country to allay their apprehensions. He,
however, said that he welcomed competition for development among states.
The Prime Minister sought to set the record
straight over the impression that he brooks no dissent saying that he would
welcome criticism, if not allegations, as it was the essence of democracy. In
fact, he started his speech acknowledging the criticism made by opposition
members during the course of discussion on the motion of thanks on the
President’s speech.
NEW DELHI: Prime Minister Narendra Modi on
Wednesday responded to President Pranab Mukherjee's address in Parliament on
June 9, saying that his government will fulfill the promises made by the President
in his speech.
Making his maiden speech in Lok Sabha as Prime Minister, Modi said that his government will be devoted to the poorest of the poor and stressed on converting the country's image from "scam India" to "skill India".
Following are the highlights of Narendra Modi's address:
* Will leave no stone unturned in implementing roadmap outlined by the President in his address.
* We will empower the poor to enable them to fight poverty and come out of it.
* No one will leave villages if they are developed, provided 24 hour-power, good education and industries.
* We should concentrate on agro-based industries.
* Our aim must be to serve the poorest of the poor and to think of their welfare.
* We are sincerely committed to bring down prices. It is our collective responsibility to ensure that nobody sleeps hungry.
* The country needs real-time data on agri-products to deal with price rise.
* We have to stop politicizing rape. We are playing with the dignity of women. Protecting women should be the priority of the people of this country.
* We should plan from today how we will celebrate Mahatma Gandhi's 150th birth anniversary after 5 years.
* We have to do focused activity to change the lives of Muslims; they cannot be left behind in development.
* Our image has become 'scam India', we have to convert it to 'skill India'.
* We welcome criticism, in a democracy, criticism gives strength and it will guide us.
* We need to focus on skill development, decisions have to be taken with great courage.
* I don't want to move forward without you (opposition), I don't want to move ahead on basis of numbers but on the basis of collectivity.
* We don't believe in big brother attitude towards states, we believe in cooperative federalism. There should be competition among states for development, I want to hear states saying they have left Gujarat behind.
Making his maiden speech in Lok Sabha as Prime Minister, Modi said that his government will be devoted to the poorest of the poor and stressed on converting the country's image from "scam India" to "skill India".
Following are the highlights of Narendra Modi's address:
* Will leave no stone unturned in implementing roadmap outlined by the President in his address.
* We will empower the poor to enable them to fight poverty and come out of it.
* No one will leave villages if they are developed, provided 24 hour-power, good education and industries.
* We should concentrate on agro-based industries.
* Our aim must be to serve the poorest of the poor and to think of their welfare.
* We are sincerely committed to bring down prices. It is our collective responsibility to ensure that nobody sleeps hungry.
* The country needs real-time data on agri-products to deal with price rise.
* We have to stop politicizing rape. We are playing with the dignity of women. Protecting women should be the priority of the people of this country.
* We should plan from today how we will celebrate Mahatma Gandhi's 150th birth anniversary after 5 years.
* We have to do focused activity to change the lives of Muslims; they cannot be left behind in development.
* Our image has become 'scam India', we have to convert it to 'skill India'.
* We welcome criticism, in a democracy, criticism gives strength and it will guide us.
* We need to focus on skill development, decisions have to be taken with great courage.
* I don't want to move forward without you (opposition), I don't want to move ahead on basis of numbers but on the basis of collectivity.
* We don't believe in big brother attitude towards states, we believe in cooperative federalism. There should be competition among states for development, I want to hear states saying they have left Gujarat behind.
NEW DELHI: President Pranab Mukherjee on
Monday laid out a clear, action-based agenda of the new government as he
addressed the joint sitting of Parliament as mandated by the Constitution on
Monday.
Modi government's ambitious roadmap to revive the struggling economy also sent the markets soaring with Nifty ending at a record high.
Here's a list of 12 important goals of the Narendra Modi government which include sweeping economic reforms and big-bang policy initiatives:
Business
The President stated that the government will work to encourage foreign direct investment in India which will help in the creation of job and asset generation. The President added that the government will introduce the long-pending Goods and Services Tax that will help in creating a conducive environment for investment.
"My government will make every effort to introduce the Goods and Services Tax (GST) while addressing the concerns of states. Reforms will be undertaken to enhance the ease of doing business. My government will follow a policy of encouraging investments, including through FDI, which will be allowed in sectors that help create jobs and assets," he said.
Check on inflation
Containing food inflation will be the topmost priority of the government, which will also try to end rural-urban divide and reverse trend of hopelessness among farmers that leads to suicides, Mukherjee said.
The government will reform the Public Distribution System (PDS), incorporating best practices from the states.
Mukherjee added that the government is aware of the possibility of irregular monsoons due to El Nino that might have an impact on food inflation this year and contigency plans are being prepared to tackle the situation.
Diplomacy
On the foreign policy, the President said while the government was committed to work towards building a peaceful, stable and economically inter-linked neighbourhood, "we will never shy away from raising issues of concern to us at a bilateral level.
Observing that the government would further work together with South Asian leaders to revitalise SAARC as an effective instrument for regional cooperation, the President said, "My government is committed to building a strong, self-reliant and self-confident India, regaining its rightful place in the comity of nations."
Government will also work towards a "peaceful, stable and economically inter-linked neighbourhood" and work with South Asian leaders to revitalise SAARC as "an effective instrument for regional cooperation and as a united voice on global issues," he said.
At the same time, the government will "never shy away from raising issues of concern to us at a bilateral level. We emphasise that the future of shared prosperity can only be built on the foundation of stability in the region, which requires sensitivity to security concerns and an end to export of terrorism to neighbours," Mukherjee said.
The government will also engage with China to develop strategic and cooperative partnership, with Japan on several initiatives including to build modern infrastructure and with Russia to build further on the strategic partnership.
"We emphasize that the future of shared prosperity can only be built on the foundation of stability in the region, which requires sensitivity to security concerns and an end to export of terrorism to neighbours."
Power
The aim of the government, he said, will be to substantially augment electricity generation capacity through judicious mix of conventional and non-conventional sources. He added that nuclear power projects for civilian purposes will be developed.
"The government will expand the national solar mission and connect households and industries with gas-grids. Reforms in the coal sector will be pursued with urgency for attracting private investment in a transparent manner," he said.
Urbanization
The President said that government will stress on the upliftment of the Tier II cities with a well-developed civic infrastructure.
"Integrated infrastructure will be rolled out in model towns to focus on cleanliness and sanitation. By the time the nation completes 75 years of its Independence, every family will have a pucca house with water connection, toilet facilities, 24x7 electricity supply and access," he added.
Job creation
The President said the labor-intensive manufacturing will be promoted to create jobs for the increasing youth population of the country.
"Employment opportunities will be expanded by promoting tourism and agro-based industries. The government will transform Employment Exchanges into Career Centres - connecting our youth with job opportunities in a transparent and effective manner through the use of technology as well as through counselling and training," he said.
Defence
On the defence sector, the President said the government will carry out reforms in defence procurement to increase efficiency and economy and encourage domestic industry, including the private sector, to have a larger share in design and production of defence equipment.
"We will strengthen defence preparedness by modernising our armed forces and addressing the shortage of manpower on priority," he said.
The government will set up a National Maritime Authority to strengthen coastal security, appoint a Veterans' Commission to address their grievances, implement 'one rank, one pension' scheme and build a National War Memorial.
Women safety and empowerment
Asserting that the government will have a policy of 'zero tolerance' for violence against women, the President said the criminal justice system would be strengthened.
The government was committed to provide 33 per cent reservation to women in Parliament and legislative assemblies and launch a mass campaign on 'Beti Bachao, Beti Padhao' for saving the girl child and enabling her education.
Reaching out to minorities
The President underlined the government's resolve to reach out to the minorities, promising that they would be "equal partners in India's progress".
The government will strengthen measures to spread modern and technical education among minority communities and a National Madrassa Modernisation Programme will be initiated.
Steps would be initiated to contain communal violence in the country that has been rampant in several states.
Poverty elimination
Giving the slogan of 'Ek Bharat, Shreshtha Bharat', he said the greatest challenge was to end the curse of poverty.
Saying that the government is dedicated to the poor, he said, "My government will not be satisfied with mere "poverty alleviation"; and commits itself to the goal of "poverty elimination". With a firm belief that the first claim on development belongs to the poor; the government will focus its attention on those who need the basic necessities of life most urgently. It will take necessary steps to provide security in its entirety to all citizens; through empathy, support and empowerment."
Healthcare and sanitation
To achieve a holistic healthcare system, the government would formulate a new Health Policy and National Health Assurance Mission, besides promoting yoga in AYUSH and establishment of AIIMS like institutions in all the states, he said, adding IITs and IIMs will also be set up in every state.
For ensuring hygiene, waste management and sanitation across the nation a "Swachh Bharat Mission" will also be launched by the government.
Upgrading infrastructure
Outlining the ambitious plan for modernization and revamping of railways, including a quadrilateral project linking the metros with high speed trains, President Pranab Mukherjee said, "Modernisation and revamping of railways is on top of the infrastructure agenda. My government will launch a Diamond Quadrilateral project of high-speed trains."
The President said low-cost airports will also be developed to promote air connectivity to smaller towns. He promised that government will also modernize existing ports on one hand and develop new world class ports on the other.
Modi government's ambitious roadmap to revive the struggling economy also sent the markets soaring with Nifty ending at a record high.
Here's a list of 12 important goals of the Narendra Modi government which include sweeping economic reforms and big-bang policy initiatives:
Business
The President stated that the government will work to encourage foreign direct investment in India which will help in the creation of job and asset generation. The President added that the government will introduce the long-pending Goods and Services Tax that will help in creating a conducive environment for investment.
"My government will make every effort to introduce the Goods and Services Tax (GST) while addressing the concerns of states. Reforms will be undertaken to enhance the ease of doing business. My government will follow a policy of encouraging investments, including through FDI, which will be allowed in sectors that help create jobs and assets," he said.
Check on inflation
Containing food inflation will be the topmost priority of the government, which will also try to end rural-urban divide and reverse trend of hopelessness among farmers that leads to suicides, Mukherjee said.
The government will reform the Public Distribution System (PDS), incorporating best practices from the states.
Mukherjee added that the government is aware of the possibility of irregular monsoons due to El Nino that might have an impact on food inflation this year and contigency plans are being prepared to tackle the situation.
Diplomacy
On the foreign policy, the President said while the government was committed to work towards building a peaceful, stable and economically inter-linked neighbourhood, "we will never shy away from raising issues of concern to us at a bilateral level.
Observing that the government would further work together with South Asian leaders to revitalise SAARC as an effective instrument for regional cooperation, the President said, "My government is committed to building a strong, self-reliant and self-confident India, regaining its rightful place in the comity of nations."
Government will also work towards a "peaceful, stable and economically inter-linked neighbourhood" and work with South Asian leaders to revitalise SAARC as "an effective instrument for regional cooperation and as a united voice on global issues," he said.
At the same time, the government will "never shy away from raising issues of concern to us at a bilateral level. We emphasise that the future of shared prosperity can only be built on the foundation of stability in the region, which requires sensitivity to security concerns and an end to export of terrorism to neighbours," Mukherjee said.
The government will also engage with China to develop strategic and cooperative partnership, with Japan on several initiatives including to build modern infrastructure and with Russia to build further on the strategic partnership.
"We emphasize that the future of shared prosperity can only be built on the foundation of stability in the region, which requires sensitivity to security concerns and an end to export of terrorism to neighbours."
Power
The aim of the government, he said, will be to substantially augment electricity generation capacity through judicious mix of conventional and non-conventional sources. He added that nuclear power projects for civilian purposes will be developed.
"The government will expand the national solar mission and connect households and industries with gas-grids. Reforms in the coal sector will be pursued with urgency for attracting private investment in a transparent manner," he said.
Urbanization
The President said that government will stress on the upliftment of the Tier II cities with a well-developed civic infrastructure.
"Integrated infrastructure will be rolled out in model towns to focus on cleanliness and sanitation. By the time the nation completes 75 years of its Independence, every family will have a pucca house with water connection, toilet facilities, 24x7 electricity supply and access," he added.
Job creation
The President said the labor-intensive manufacturing will be promoted to create jobs for the increasing youth population of the country.
"Employment opportunities will be expanded by promoting tourism and agro-based industries. The government will transform Employment Exchanges into Career Centres - connecting our youth with job opportunities in a transparent and effective manner through the use of technology as well as through counselling and training," he said.
Defence
On the defence sector, the President said the government will carry out reforms in defence procurement to increase efficiency and economy and encourage domestic industry, including the private sector, to have a larger share in design and production of defence equipment.
"We will strengthen defence preparedness by modernising our armed forces and addressing the shortage of manpower on priority," he said.
The government will set up a National Maritime Authority to strengthen coastal security, appoint a Veterans' Commission to address their grievances, implement 'one rank, one pension' scheme and build a National War Memorial.
Women safety and empowerment
Asserting that the government will have a policy of 'zero tolerance' for violence against women, the President said the criminal justice system would be strengthened.
The government was committed to provide 33 per cent reservation to women in Parliament and legislative assemblies and launch a mass campaign on 'Beti Bachao, Beti Padhao' for saving the girl child and enabling her education.
Reaching out to minorities
The President underlined the government's resolve to reach out to the minorities, promising that they would be "equal partners in India's progress".
The government will strengthen measures to spread modern and technical education among minority communities and a National Madrassa Modernisation Programme will be initiated.
Steps would be initiated to contain communal violence in the country that has been rampant in several states.
Poverty elimination
Giving the slogan of 'Ek Bharat, Shreshtha Bharat', he said the greatest challenge was to end the curse of poverty.
Saying that the government is dedicated to the poor, he said, "My government will not be satisfied with mere "poverty alleviation"; and commits itself to the goal of "poverty elimination". With a firm belief that the first claim on development belongs to the poor; the government will focus its attention on those who need the basic necessities of life most urgently. It will take necessary steps to provide security in its entirety to all citizens; through empathy, support and empowerment."
Healthcare and sanitation
To achieve a holistic healthcare system, the government would formulate a new Health Policy and National Health Assurance Mission, besides promoting yoga in AYUSH and establishment of AIIMS like institutions in all the states, he said, adding IITs and IIMs will also be set up in every state.
For ensuring hygiene, waste management and sanitation across the nation a "Swachh Bharat Mission" will also be launched by the government.
Upgrading infrastructure
Outlining the ambitious plan for modernization and revamping of railways, including a quadrilateral project linking the metros with high speed trains, President Pranab Mukherjee said, "Modernisation and revamping of railways is on top of the infrastructure agenda. My government will launch a Diamond Quadrilateral project of high-speed trains."
The President said low-cost airports will also be developed to promote air connectivity to smaller towns. He promised that government will also modernize existing ports on one hand and develop new world class ports on the other.
Telegraph India reported that India will
need an additional capacity of 330 million tonne to 380 million tonne for
cement and 240 million tonne to 270 million tonne for clinker by 2025, which
translates into an investment of INR 3 lakh crore to meet the sharp increase in
demand by this period.The Indian cement industry is the second largest in the
world with total production at around 221 million tonne in 2012.
However, the country fares poorly in terms of cement consumed per capita compared with other peer economies. According to a CII-AT Kearney Study on “Cement Vision 2025: Scaling New Heights”, demand is projected to grow 2.5-2.7 times the current volume and reach 550 million tonne per annum to 600 million tonne per annum by 2025.Per capita consumption is also likely to increase to 385 kilogram to 415 kilogram from 185 kilogram.
This growth, the report said, is likely to be led by investments in the infrastructure sector, with sub-sectors such as roads, power and irrigation leading the charge. However, an unattractive tax and infrastructure environment may stand in the way of the required investment of INR 3 lakh crore. The report said that in addition to policies that encourage companies to bring in such investments, continuous improvement will have to be made to strengthen the industry’s operating cost structure by increasing automation and improving efficiency in power use.
Source – Telegraph India
However, the country fares poorly in terms of cement consumed per capita compared with other peer economies. According to a CII-AT Kearney Study on “Cement Vision 2025: Scaling New Heights”, demand is projected to grow 2.5-2.7 times the current volume and reach 550 million tonne per annum to 600 million tonne per annum by 2025.Per capita consumption is also likely to increase to 385 kilogram to 415 kilogram from 185 kilogram.
This growth, the report said, is likely to be led by investments in the infrastructure sector, with sub-sectors such as roads, power and irrigation leading the charge. However, an unattractive tax and infrastructure environment may stand in the way of the required investment of INR 3 lakh crore. The report said that in addition to policies that encourage companies to bring in such investments, continuous improvement will have to be made to strengthen the industry’s operating cost structure by increasing automation and improving efficiency in power use.
Source – Telegraph India
By Chaitanya Kalbag
It seemed like the rhyming slogans, the
election jingles, and the grandiloquence of the Bharatiya Janata Party's
manifesto were all that we needed to shake us out of our psychic numbing during
the past few years. Alliteration hit you everywhere you turned. Narendra Modi
told a small audience last Sunday that we needed to ramp up our Skills, Scale
and Speed if we wanted to compete with China. The following day President Pranab
Mukherjee echoed this in his speech to Parliament. He said the government
would also build a Strong, Self-reliant and Self-confident India. It would
revive Brand India riding on "our strengths of 5 T's: Tradition, Talent,
Tourism, Trade and Technology". Indians thirsting for quick results would
get them thanks to the three Ds of Democracy, Demography and Demand.
True, there is a new sense of purposefulness in government. Many of the early steps Modi has taken reflect his Chief Executive Officer style in Gujarat. He does not believe in endless meetings and buck-passing. He has asked to be briefed by senior bureaucrats. He has thrown out the previous government's time-pass gimmicks of (un-empowered) Groups of Ministers and Empowered Groups of Ministers. (Mukherjee himself headed 12 GoMs and 12 EGoMs before he ascended Raisina Hill to his sinecure in RashtrapatiBhavan).
After the crescendo of elections, the business of a new government is nearly always quieter, but this time Modi's takeover is probably the most keenly watched in our history, helped by Television and Twitter. Every appointment and directive is grist for the gossip mill. There is a welcome absence of grey party eminences with puffed chests sounding off about their bailiwicks. Modi's ministers have been warned not to put their feet in their mouths, be wary of the media, work long hours and be modest in their trappings. Bureaucrats have been promised more power and autonomy and ordered to buckle down. Lawyers are aghast that the Chief Justice of India wants courts to work 365 days a year to chisel down their backlog of cases. Government offices are actually getting dusted off and are a-buzz with rumours that Modi will bring back six-day weeks and that tea breaks will be frowned upon. During Indira Gandhi's 1975-77 Emergency rule buses were painted with slogans like "Work More, Talk Less". More than two thirds of our population was born after that anushasanparva (era of discipline) and will be impatient for less government, even if Modi means more governance.
It is what Modi does not say that is
concerning. He has maintained a studied silence on the mischief and bigotry
that are sprouting like poison weeds on the borders of his green garden.
Disconcertingly, the lunatic fringe is reinvigorated and would love to take
centre-stage. The Born Agains, the Recent Converts and the Newly Emboldened
have suddenly found voice, and social media are throbbing with vitriol and
unconcealed belligerence. The Pune lynching by a flash mob of zealots is one
signal; so is the chilling pleasantness with which Vishwa Hindu Parishad
leader Ashok
Singhal spoke on television of Muslim 'infiltrators' in the Northeast, the
certainty of a Ram temple in Ayodhya, and the need for Hindus to procreate in
greater numbers. Checking illegal immigration is unexceptionable, but throwing
people out is non-trivial and deeply divisive.
Modi's victory was not the only scorcher this summer. High temperatures not seen since 1952, the year our first Parliament took oath, have singed ordinary mortals in north India. Two local BJP politicians were killed in Greater Noida and Muzaffarnagar in Uttar Pradesh, adding to riots over power cuts in several UP towns. Home Minister Rajnath Singh, a former chief minister of UP, will have his hands full sorting out law and order in our darkest and largest state. Elsewhere in India, sectarian crowds clashed in Tauru, Belgaum, Hyderabad, Poonch, and even Ahmedabad. We were promised by Mukherjee that the new government would draft a national plan to curb communal violence and show zero tolerance towards riots and crime.
Modi must be seen to be cracking down on such eruptions, even if he is allowing himself longer horizons for other goals. Last week I wrote about Great Expectations, and the President promised his government would rise to the occasion to fulfil them. "In 60 months from now, we should be able to say with confidence and pride that we have done it," he said. Note that 2019 is also the deadline for the Swachh Bharat Mission, which aims at toilets and open spaces littered with garbage.
I wish. Right now I wish India were Europe, where inflation is low, nearly zero, and deposit interest rates were cut to minus 0.1 per cent, which means you are being encouraged to spend rather than pay your bank to keep your money. The Organisation for Economic Cooperation and Development says while momentum is weakening in most emerging economies, India is at a "tentative positive turning point". India's stock markets hit more than $1.5 trillion in value this week, weeks before ArunJaitley unveils his first budget. The ardour has cooled only a bit as the summer grinds towards a monsoon that is certain to be the worst in four years. A severe drought and soaring food prices seem sure to grab us by our throats. More tests for Modi, and the nation is watching and waiting to Learn Leadership Lessons.
(The writer is a former Reuters Asia Ed)
According to ET Now, the Road Ministry has already begun discussions with potential investors and that the fund size could be anywhere between $4-5 billion. "The idea is to boost infrastructure projects in India, particularly road projects," reported ET Now. "Japanese and Korean investors have already showed interest in participating in the fund. A PPP model will be followed for the projects," the channel said. Union Road Transport, Highways and Shipping MinisterNitin Gadkari.. A textile industry body had suggested that people enrolled in the National Rural Employment Guarantee programme would be given 200 days of casual work by them, instead of the 100 days given by the government. Though this would have led to better output, it was rejected," said Shriram.
NEW DELHI: The Centre has decided to give
Rs 12,000 per household to the poor for working on building their homes, a
measure that signifies the biggest convergence of two social welfare schemes
and could provide a boost to both rural employment and consumption at a time
when the monsoon is expected to be below average.
Read more at:
http://economictimes.indiatimes.com/articleshow/36391657.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
http://economictimes.indiatimes.com/articleshow/36391657.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Read more at:
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An open letter to our new HRD
Minister
Dear HRD minister,
Congratulations on BJP's victory in the general elections. We now eagerly await the measures that your government will take to drive socio-economic prosperity for the country. As the government prepares for such measures, it is important to note that for any growth model to be successful we need an educated and skilled population. That's why PM Narendra Modi placed skills at the head of his "skill, scale and speed" formula to transform India.
As you assume your newly assigned responsibilities, we take this opportunity to share our perspective on five big reforms that could transform India's education system from a mediocre to a world-class system.
First, our education system currently suffers from an apparent 'Licence Raj' that restricts entry and operation of private players. Even policies such as RTE neglect that private schools are a large part of the education ecosystem (already 40% of school students and 60% of college students are enrolled in private institutions). These norms have led to the shutdown of a large number of affordable private schools that serve low-income students. The government must deregulate school education and treat government and private schools as equal partners in solving India's education crisis.
Second, it is important not only to invest more in education but to do so more strategically. Central government should invest more resources in teacher education and development, principal training, ICT in education and assessments. It is also critical for the ministry of human resource development to rework its results framework document (RFD) to include student learning outcomes. Furthermore, a portion of the budget allocation to states should be contingent upon the adoption of progressive education policies and improvement of outcomes. There is an opportunity to create version 2.0 of the central education budget that shifts focus from inputs and outlays to outcomes and impact, while holding states accountable.
Third, improve quality standards through nationwide assessments. Assessments need to be at the core of any planning exercise for improving India's education system. The government should introduce statewide learning assessments that are undertaken at regular periods during a child's school journey, which can also contribute to remediation and improvement in teaching. Additionally, a school rating system should be instituted to set targets for school level improvements. The National Achievement Survey (NAS) should be revamped such that it becomes a barometer for student learning and the de facto benchmark for state performance.
Modi's government in Gujarat has already taken a lead in this regard with the Gunotsav programme, an accountability framework for quality of primary education that includes learning outcomes of children as well as co-scholastic activities, optimal use of financial resources and community participation. This model can be replicated in other states.
Fourth, equip school principals to become efficient school leaders. Great leaders make great institutions, in every sphere. In schools principals are the highest point of leverage, yet their role is often restricted to administrative functions. There is a need to reimagine the role of the principal — as an instructional leader, rather than an administrator. Moreover, we need to institute stricter guidelines for recruitment of school leaders that prioritise merit over seniority. Gujarat has again taken the lead by establishing the headmaster eligibility test for selection of its principals. The government should set up centres for school leadership in every state and mandate induction as well as ongoing training for all principals.
Fifth, improve teacher quality for better learning outcomes. It is unfortunate that teaching today does not attract the best talent. We need public awareness campaigns in India that are able to effectively project teaching as a rewarding and meaningful profession. Centres of excellence need to be created for teacher education in prestigious universities across India. Our Teacher Education Institutes (TEI) capacity is extremely fragmented with over 11 lakh seats in 14,000 TEIs. Most of this capacity is of poor quality that has been created through non-transparent, poorly formulated TEI recognition procedures. Government should build and scale high-quality institutes at top 10 central universities and strengthen SCERTs and DIETs.
We believe that every child in India deserves excellent education. We also believe that given the vastness and diversity of our country we can only succeed with thorough experimentation and analysis, rather than a mere adoption of predefined rules. Our country needs bold reforms and focused implementation with clear targets for learning outcomes to achieve this goal.
Our emerging market peers — China, Brazil and Poland, among others — have made education reform a priority as they recognise it as the surest path to sustained economic development. In the run-up to elections we circulated a letter signed by leading citizens — Cyrus Mistry, Kumar Birla, Anand Mahindra, Gurcharan Das and 30 others — that highlighted the need for prioritising education in the policy agenda and suggested reforms. The future of 240 million children is at stake, and as concerned citizens we urge your attention to these bold steps that can truly improve their lives.
Thank you.
Anu Aga is a Rajya Sabha MP and Chairperson- Thermax Social Initiative Foundation; Ashish Dhawan is Founder and CEO- Central Square Foundation and Founder- Ashoka University; Amit Chandra is Managing Director- Bain Capital Advisors, Board Member- Akanksha Foundation.
Congratulations on BJP's victory in the general elections. We now eagerly await the measures that your government will take to drive socio-economic prosperity for the country. As the government prepares for such measures, it is important to note that for any growth model to be successful we need an educated and skilled population. That's why PM Narendra Modi placed skills at the head of his "skill, scale and speed" formula to transform India.
As you assume your newly assigned responsibilities, we take this opportunity to share our perspective on five big reforms that could transform India's education system from a mediocre to a world-class system.
First, our education system currently suffers from an apparent 'Licence Raj' that restricts entry and operation of private players. Even policies such as RTE neglect that private schools are a large part of the education ecosystem (already 40% of school students and 60% of college students are enrolled in private institutions). These norms have led to the shutdown of a large number of affordable private schools that serve low-income students. The government must deregulate school education and treat government and private schools as equal partners in solving India's education crisis.
Second, it is important not only to invest more in education but to do so more strategically. Central government should invest more resources in teacher education and development, principal training, ICT in education and assessments. It is also critical for the ministry of human resource development to rework its results framework document (RFD) to include student learning outcomes. Furthermore, a portion of the budget allocation to states should be contingent upon the adoption of progressive education policies and improvement of outcomes. There is an opportunity to create version 2.0 of the central education budget that shifts focus from inputs and outlays to outcomes and impact, while holding states accountable.
Third, improve quality standards through nationwide assessments. Assessments need to be at the core of any planning exercise for improving India's education system. The government should introduce statewide learning assessments that are undertaken at regular periods during a child's school journey, which can also contribute to remediation and improvement in teaching. Additionally, a school rating system should be instituted to set targets for school level improvements. The National Achievement Survey (NAS) should be revamped such that it becomes a barometer for student learning and the de facto benchmark for state performance.
Modi's government in Gujarat has already taken a lead in this regard with the Gunotsav programme, an accountability framework for quality of primary education that includes learning outcomes of children as well as co-scholastic activities, optimal use of financial resources and community participation. This model can be replicated in other states.
Fourth, equip school principals to become efficient school leaders. Great leaders make great institutions, in every sphere. In schools principals are the highest point of leverage, yet their role is often restricted to administrative functions. There is a need to reimagine the role of the principal — as an instructional leader, rather than an administrator. Moreover, we need to institute stricter guidelines for recruitment of school leaders that prioritise merit over seniority. Gujarat has again taken the lead by establishing the headmaster eligibility test for selection of its principals. The government should set up centres for school leadership in every state and mandate induction as well as ongoing training for all principals.
Fifth, improve teacher quality for better learning outcomes. It is unfortunate that teaching today does not attract the best talent. We need public awareness campaigns in India that are able to effectively project teaching as a rewarding and meaningful profession. Centres of excellence need to be created for teacher education in prestigious universities across India. Our Teacher Education Institutes (TEI) capacity is extremely fragmented with over 11 lakh seats in 14,000 TEIs. Most of this capacity is of poor quality that has been created through non-transparent, poorly formulated TEI recognition procedures. Government should build and scale high-quality institutes at top 10 central universities and strengthen SCERTs and DIETs.
We believe that every child in India deserves excellent education. We also believe that given the vastness and diversity of our country we can only succeed with thorough experimentation and analysis, rather than a mere adoption of predefined rules. Our country needs bold reforms and focused implementation with clear targets for learning outcomes to achieve this goal.
Our emerging market peers — China, Brazil and Poland, among others — have made education reform a priority as they recognise it as the surest path to sustained economic development. In the run-up to elections we circulated a letter signed by leading citizens — Cyrus Mistry, Kumar Birla, Anand Mahindra, Gurcharan Das and 30 others — that highlighted the need for prioritising education in the policy agenda and suggested reforms. The future of 240 million children is at stake, and as concerned citizens we urge your attention to these bold steps that can truly improve their lives.
Thank you.
Anu Aga is a Rajya Sabha MP and Chairperson- Thermax Social Initiative Foundation; Ashish Dhawan is Founder and CEO- Central Square Foundation and Founder- Ashoka University; Amit Chandra is Managing Director- Bain Capital Advisors, Board Member- Akanksha Foundation.
Decision taken in view of significant feedback, say sources
A day after senior advocate and former
Solicitor-General Gopal Subramanium withdrew his consent for appointment as
a Supreme Court judge, highly placed government sources claimed that the
government rejected his candidature after it got “overwhelming evidence” that
indicated his unsuitability as a judge for the country’s top court.
While respecting Mr. Subramanium’s
professional competence as a senior advocate, the sources on Thursday said an
Intelligence Bureau (IB) report about him was sent on May 22, four days before
the Narendra Modi government was sworn in. The Law and Justice Ministry had
decided that the new government should take a call on it.
On Wednesday, in a nine-page letter, Mr. Subramanium told Chief Justice of India R.M. Lodha that he did not want his elevation to be the subject of any kind of politicisation. He also questioned the segregation of his name from the other three candidates without the consent of the Supreme Court collegium.
Decision in totality
Defending the segregation, government sources said there was precedent at the Supreme Court and High Court level. “The government did not want to delay the appointment of the three other judges as there was no objection or adverse report against them. Whom he appeared for and whom he opposed was not considered. It is his suitability as a Supreme Court judge which was the issue and the new government has a right to take a decision in view of the significant feedback that required a consideration. The decision was taken in totality,” the sources said.
Defending the segregation, government sources said there was precedent at the Supreme Court and High Court level. “The government did not want to delay the appointment of the three other judges as there was no objection or adverse report against them. Whom he appeared for and whom he opposed was not considered. It is his suitability as a Supreme Court judge which was the issue and the new government has a right to take a decision in view of the significant feedback that required a consideration. The decision was taken in totality,” the sources said.
The file containing the other three names — Calcutta High Court Chief Justice Arun Mishra, Orissa High Court Chief Justice Adarsh Kumar Goel and senior advocate Rohinton Nariman — was cleared by the Prime Minister and approved by the President in a matter of a few hours, the sources said. Citing the example of Justice Swatanter Kumar and Justice C.K. Prasad, the sources said while Justice Kumar was appointed apex court judge in due course in 2009, Justice Prasad’s elevation was delayed by two months.
The sources said there were several instances where the collegium of several High Courts itself had withdrawn some names which had been proposed for appointment as judges. In 2012, as many as 15 names were recommended by the Allahabad High Court collegium to be appointed as judges but the Supreme Court recommended only eight, dropping seven.
In 2012, the Andhra Pradesh High Court
collegium recommended seven names but only five were appointed as judges. In
2013, the Madras High Court recommended eight names for appointment as judges
but only five were found suitable.
Partisan step
Critical of the stand taken by the Modi government on Mr. Subramanium, the Communist Party of India (Marxist) on Thursday said the apex court should act and undo the damage caused by this “partisan” step.
Critical of the stand taken by the Modi government on Mr. Subramanium, the Communist Party of India (Marxist) on Thursday said the apex court should act and undo the damage caused by this “partisan” step.
It said the way the Modi government acted
would be detrimental to the independence of judiciary. “Mr. Subramanium had
been penalised for his role as amicus curiae to assist the Supreme Court in the
Sohrabuddin Sheikh encounter case which resulted in Bharatiya Janata Party
leader Amit Shah being charge-sheeted in the case,” the CPI(M) said.
If
India wants to imitate China & emulate growth at
all costs of Green, Environment &
a vacuum full of imaginary
stability in economy, it
needs to read out the following article—
Australia's largest iron ore miners are
still upbeat about Chinese demand for the steel making material, despite iron
ore prices falling to their lowest level in 18 months in March. The price of
iron ore may have jumped overnight, but there's no denying the Chinese steel
industry -- the largest buyer of Australian ore -- is fighting for its
survival.In the first two months of 2014, members of China's Iron and Steel
Association made a collective loss of 2.8 billion yuan, or $490 million.
"The first quarter of this year is likely to be the worst performing
quarter in the new century,” said Liu Zhenjiang, deputy director of the China
Iron and Steel Association.The steel industry's profitability also sunk to a
nadir in 2013 when it barely managed to stay in the black, with a razor-thin
margin of 0.48 per cent. The owner of China's largest privately controlled
steel mill, Shen Wenrong, illustrated it more graphically last year.He said the
profit for a tonne of steel was about 2,000 yuan 20 years ago and about 1,000
yuan a decade ago. And now it was less than the margins on a simple dish of
stir fried meat, he complained bitterly last year.Apart from sharply declining
profitability, the prospect of default is looming over China's heavily indebted
steel mills. The debt ratio for many of the largest steel mills in China is
about 70 per cent, which banks regard as the red line for listed steel
companies.In fact, China's largest privately controlled steel mill has a debt ratio
of 83.03 per cent. And the seven largest steel mills in China have a collective
debt obligation of 1.3 trillion yuan ($226 billion), which is much larger than
the market capitalisation of BHP Billiton.The prospect of default in the
world's largest steel industry is only a matter of time -- especially
after Beijing allowed its first corporate debt default this year since 1990s.
Haixin, the largest private steel mill in the coal-rich Shanxi province needs
to pay back 15-20 billion yuan worth of its bank loans.The local government is
unlikely to come to its rescue as it struggles to keep coal companies -- the
most important industry for the province -- afloat after significant fall in
coal prices recently.China's banking regulator and banks are coming down hard
on indebted steel mills and especially private ones without the backing of
local governments. China Banking Regulatory Commission chairman Shang Fulin
told officials to pay particular attention to industries that suffer from
problems of excess capacity and the steel industry is one of the worst
offenders in this category.Chinese lenders like the Construction Bank of China,
Minsheng Banking Corp and Pudong Development Bank are all reportedly avoiding
issuing new loans to steel mills. A banker from Minsheng told Caixin,
"regarding steel industry, we will try our best to avoid it.” It looks
like Beijing is using this opportunity to consolidate the fragmented steel
industry through forced mergers and closures of steel mills. The Chinese
government has been long unhappy about the fragmented nature of the industry.In
China, the top ten producers only account for 40 per cent of the total steel
production. In contrast, the top producers in Japan and Korea usually account
for 20 per cent of the total production on their own.We can probably expect
more defaults in China's steel industry this year as economic headwinds remain
strong. In addition, Premier Li Keqiang also made clear the government's goal
to reduce 27 million tonnes of excess capacity this year.China Metallurgical
Industry Planning and Research Institute head Li Xinchuang said recently that
the most important trend for the steel industry in the coming decade was
consolidation and reorganisation.
China's steel industry will face twin headwinds of high leverage and razor-thin profitability this year. It is inevitable that Beijing will have to let go many smaller mills this year as they struggle to meet their debt obligations as well new tougher environmental standards
China's steel industry will face twin headwinds of high leverage and razor-thin profitability this year. It is inevitable that Beijing will have to let go many smaller mills this year as they struggle to meet their debt obligations as well new tougher environmental standards
Conclusion--- Gujarat's first budget in the post Narendra Modi
era predominantly focussed on social sectors which received 39% of the total
plan allocation — Rs 71,330 crore — for development in 2014-15.State finance minister
Saurabh Patel presented the Rs 1,33,465 crore budget on Tuesday, emphasizing
the need to take Gujarat's growth story forward from where Modi has left off.
The budget introduced a new levy on civil works contract and hiked the stamp
duty on property development agreements to 3.5% from the existing 1%. It also
doubled motor vehicle tax on 6-8 seater transport vehicles from Rs 1,500 to Rs
3,000 per seat per year - it is up to Rs 15,000 per berth per year in case of
private luxury buses - while lowering the levy for state transport buses which
will lead to cheaper fares for GSRTC buses. Having presented an interim budget
in April 2014, the state government presented modified budget estimates for
2014-15 with an overall budget size of Rs 1,33,465 crore, an increase of 17%
compared to 2013-14. Plan allocation for 2014-15 is Rs 71,330 for annual
development, which shows a 21% rise over the plan size of last year. "The
most striking example of community development was at Amreli where a group of
US based NRGs have adopted 23 primary schools. Despite recurring expenditure,
NRGs are supporting education of all at these primary schools," said Dr
Bhavna Mehta, associate professor and at MS University's Faculty of Social Work
which surveyed 6,000 villages across eight districts. The survey, commissioned
by the Gujarat NRG Foundation, shows that NRGs contributed to the development
of 2,331 villages of 203 talukas. This means every eighth village in the state
has seen NRG dollars and pounds contributing to their uplift.In fact,
Banaskantha district was the biggest beneficiary, with NRGs contributing to the
growth of 345 villages.
Do you smell something? Same Senonomical essence in the state of Gujarat, the state of business people who regard welfare as subservient to charity.
And today Mr Diggy Raja has showered a pool of graft charges on to MP CM.
Petrol & Diesel prices have gone up…
draught on the offing… crops
on the decline… Inflation up… Train fare raised by 14% & Freights by 6% … all logical ,
the steps UPA postponed executed by
NDA. But how long shall
the honeymoon sustain? People shall start judging
Modiji in same coin as he so
articulately humiliated UPA & its 80
yr old genius. It is high time MOdi’s men should pull up
socks.
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