Hear Ye ! Hear Ye !

#FiscalDeficit   /  #IndianEconomy ?

 

No one wants fiscal deficit to go up / widen / get worse

 

Certainly not Shri Surjit Bhalla , Member PM – Economic Advisory Council ( #PMEAC )

 

His views are reported in Business Line ( 18 Oct ) as follows :

 

“ Govt may stick to fiscal deficit target, says EAC’s Surjit Bhalla “

 

The government is likely to stick to its fiscal deficit target of 3.2 per cent of GDP, and may accelerate sales of government stakes in lenders and other companies as part of an effort to recapitalise banks, said Surjit Bhalla, a member of the Prime Minister’s Economic Advisory Council, on Tuesday.

 

The government has already used up nearly all of its budget for the current fiscal year, and tax revenues are expected to fall far short of initial expectations. At the same time, economic growth has slowed, sparking calls for more stimulus.

 

But Bhalla said the government had stuck to its fiscal deficit targets over the past three years and is expected to do so this year as well.

 

The central bank has warned that missing the fiscal deficit target could lead to a spike in inflation, hurting macro-economic stability. Indian stocks slid last month on reports that a stimulus package worth up to ₹50,000 crore might be in the works — one that would widen the deficit to 3.7 per cent of GDP.

 

Economic growth slipped to its lowest level in three years in the first quarter, logging an annual rate of 5.7 per cent, but Bhalla said there were signs of recovery.

 

“I am more optimistic on the economy than I was two weeks ago,” he said, adding that last week’s industrial output and export data suggested fears about a slowdown were exaggerated.

 

He said GDP growth could be close to 6.5 per cent for the fiscal year — although that forecast is lower than the central bank’s latest estimate of 6.7 per cent.

 

Bhalla said the Council’s views on the fiscal deficit has been communicated to the government by its chairman Bibek Debroy.

 

Bad loans in the banking sector hit a record ₹9.5 lakh crore at the end of June, with stressed loans as a percentage of total loans at 12.6 per cent, the highest level in at least 15 years.

 

That represents a major problem for Asia’s third-largest economy, as provisions eat into profits and new lending is choked off. The bulk of the sector’s bad loans are held by the 21 state-run banks.

 

For a layman like me , Fiscal Deficit means :

 

Excess of government’s EXPENDITURE over its REVENUE , in a given year

Spending more than what you earn ?  What our parents told us never to do when it

came to managing household budget  ?

 

Here are some ways to bring down “ Fiscal Deficit “ :

#    Spend less

#    Earn more

#   Simultaneously , spend less and earn more

 

“ Spending less “ is out of question . That would further slow down the economy !

 

If anything , the crying need right now is to “ SPEND MORE / MUCH MORE “ – in order to boost the Economy

 

Govt needs to spend  Rs 350 Lakh*Crores  on Infrastructure in next few years

 

That leaves us with the following options to “ RAISE / INCREASE  REVENUE  “ :

 

#  Increase Taxes  (  –  horror of horror – considering that all kinds of elections are

around the corner !  Who wants to commit political hara-kiri ?  )

 

#  Borrow money from wherever you can ( did not Japan give a loan of Rs 1 lakh*crore

at nearly zero per cent interest ?  Why worry about Public Debt going up ?  Let the

public worry about that – just as public is worrying about those bank NPAs getting

neutralized by Central Government through RE-CAPITALIZATION , using tax collected

from you / me ! )

 

Since these are not “ Viable Options “ , I request Shri Bhalla ( – and other members of PM-EAC ) , to consider my following blog / suggestion / email :

 

Tuesday, 2 February 2016

 

TIME IS NOW !

 

Quoting from a news-report ( HT / 02 Feb 2016 ) :

 

At a recent World Economic Forum summit in Davos, Shri Arun Jaitley had said , India needs some additional growth engines , indicating that the focus would shift to reviving PRIVATE investments

 

 

Senior Govt officials said,” The incentives could be in the nature of TAX CONCESSIONS ”

 

 

DIPP Secretary , Amitabh Kant added ,  ” For the Indian economy to continue to grow, it has to be on the back of DOMESTIC  PRIVATE  SECTOR  investments ….. for a continuous robust growth , investments from the PRIVATE  SECTOR , have to be ramped up ”

 

 

Let us not keep fooling ourselves  !

 

Prey  !  From where do the so called PUBLIC SECTOR investments come from ?

 

 

It is PRIVATE MONEY  !  Just re-routed by governments , using yours and mine tax money  !

 

 

That is, whatever gets left ( of that tax money ) after expenses of running the government

 

 

Apart from that ,

 

*  Re-routing tax money through PUBLIC SECTOR investments, is a very slow / cumbersome process

 

*  Persons who manage those investments are rarely made ” accountable ” for profits / dividends

 

*  Since tax-payers do not get immediate benefits from such re-routing , it gives rise to tax evasions

 

*  Tax evasions lead to generation of BLACK MONEY and CORRUPTION

 

 

And no political party would advocate ” raising of taxes ” so that , on 29 Feb 2016 , Shri Jaitley could allocate

 

*  ONE TRILLION DOLLARS ( Rs 70 lakh*crore ) each to , Piyush Goyal / Suresh Prabhu / Nitin Gadkari / Ravi Shankar Prasad / Uma Bharati / Venkaiah Naidu / Rajiv Pratap Rudy etc

 

 

 

and

 

 

*  TEN TRILLION DOLLARS each to , Manohar Parikar ( Defense ) and Nirmala Sitharaman ( Make in India )

 

 

 

WHERE  CAN  WE  FIND  THAT  GROWTH-ENGINE  ?

 

 

In my email ( 08 April 2014 ) , I wrote to Shri Narendra Modi :

 

*  Create Infrastructure SPVs

 

*  Allow people to invest in these directly and make ” returns ( interests / dividends ) ” , tax free

 

*  Amnesty Scheme for funds invested in such SPVs ( no questions asked as to the source of funds invested )

 

*  An ” INVERSE  TAX ” regime for Personal Income Tax  ( with decreasing tax-rates for each higher slab )

 

 

Later emails recommended :

 

*  Encourage  CREATION of WEALTH  by  total abolition of Personal Income Tax

 

*  Decreasing Corporate Income Tax , linked to number of permanent employees

 

 

I hope Shri Jaitleyji does not treat these as POPULIST measures and keep tinkering with  80ccg /  80dd / 80ddb / 80e / 80g /80gg /80ggc / 80tta  / 80u / 24b ….etc  !

 

 

Time now is for embracing   TRANSFORMATIONALIST   measures

It is time for the Butterfly to emerge from its cocoon  !

 

18  Oct  2017

www.hemenparekh.in / blogs

 

 

 

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Take Everyone Along

Jan  Bhagidari  :  a  LIQUID  democracy  ?

 

Our PM , Shri Modiji has been talking of  “ Subka  Saath –  Subka  Vikas  “ for a long time and exhorting citizens to send in their suggestions for improving governance

 

Half way around the world , in far off city of Boulder ( Colorado – USA  ) , Camilo Casas says , if elected to the city council , he will not make any decision by himself.

 

Instead, he plans to put that power in the hands of the people via a liquid democracy app called Parti.Vote.  (   http://www.parti.vote/   )

 

The idea is that instead of simply hoping their elected representatives  support their stance on issues, citizens will be empowered to directly affect policy-making by voting through the app.

 

If Casas were to be elected, citizens of Boulder would sign up for the app online, with Casas’ team vetting each person to prevent fraud.

 

Casas would then vote according to how the people in the community did through the app. For example, if more than 50 per cent voted “yes” on an issue or policy, Casas would vote the same way, regardless of his personal stance on the issue.

 

Only when the citizen votes resulted in a tie would he be forced to decide based on his own beliefs.

 

 

For details of how Camilo plans to implement this , what he calls , “ Liquid Democracy “ , read :

 

https://futurism.com/a-u-s-political-candidate-just-pledged-to-make-all-decisions-via-an-app-poll/

 

 

 

If , Shri Modiji – who is also the architect of JAM trinity ( Jan Dhan Bank accounts / Aadhar ID card / Mobile Apps ) – wants to translate his “ Subka Saath , Subka Vikas “ into an instrument of Jan Bhagidari , then I urge him to ask NITI Aayog and the concerned Ministries to implement the following suggestions ( earlier sent as emails ) :

 

 

VotesApp  [ 15  Aug  2013  ]

 

http://www.hemenparekh.in/2013/08/votesapp.html#.WebfKWiCzcc

 

I  SIN  >  <  U  SIN  [  18  Aug  2013  ]

 

http://www.hemenparekh.in/2013/08/i-sin-sin-that-could-be-name-of-android.html#.WebfhGiCzcc

 

ROMP   [  06  Aug  2015   ]

 

https://myblogepage.blogspot.in/2015/08/romp-panacea.html

 

What  are  the  chances  ?   [  18  May  2014   ]

 

https://myblogepage.blogspot.in/2014/05/what-are-chances.html

 

Constructive  Criticism  ?  [  28  May  2017   ]

 

https://myblogepage.blogspot.in/2017/05/constructive-criticism.html

 

Be  Aware  /  Beware  !  [  30  Aug  2016   ]

 

https://myblogepage.blogspot.in/2016/08/be-aware-beware.html

 

Twitter Seva ( V 2.0 ) ?   [   26   May  2017  ]

 

https://myblogepage.blogspot.in/2017/05/twitter-seva-v-20.html

 

How To Shame MPs / MLAs ?  [  24  March  2017  ]

https://myblogepage.blogspot.in/2017/03/how-to-shame-mps-mlas.html

How  come  “  E Mail , E Mail – No  Reply “ ?  [  14  Oct  2017  ]

https://myblogepage.blogspot.in/2017/10/transformingindia.html

18  Oct  2017

www.hemenparekh.in / blogs

 

 

 

 

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Going Dutch ? Absolutely !

Sun  Rises  in  West  ?

 

Way back in 1986 , this was the title of a  small booklet  ( authored by me and published by BCCI – Bombay Chamber of Commerce and Industries ]

 

http://latterstolntemployee.blogspot.in/2013/07/sun-rises-in-west-part-i.html

 

In this , I wrote how the American and the European companies are trying to beat the competition by raising their productivity

 

It seems they are still at it ( raising their competitiveness ) , 31 years later  !

 

Following news appearing on the Guardian will explain what I mean :

 

https://www.theguardian.com/environment/2017/oct/15/this-is-the-future-solar-powered-family-car-hailed-by-experts

 

‘This is the future’: solar-powered family car hailed by experts

 

 

A futuristic family car that not only uses the sun as power but supplies energy back to the grid has been hailed as “the future” as the annual World Solar Challenge wrapped up in Australia.

 

 

A Dutch car, Nuna 9, won the race for the third-straight time, crossing the finish line on Thursday after travelling at an average speed of 81.2kmh (55.5 mph).

 

 

It was competing in the challenger class, which featured slick, single seat aerodynamic vehicles built for sustained endurance and total energy efficiency.

 

But there was also a cruiser class, introduced to bridge the gap between high-end technology and everyday driving practicality.

 

German team HS Bochum was the first to arrive Friday with its stylish four-seater classic coupe, featuring sustainable materials such as vegan pineapple leather seats.

 

But another Dutch team, Eindhoven, was set to be crowned overall champion based on a system taking into account design, practicality, energy efficiency, and innovation, organisers said.

 

Their family car, Stella Vie, carried five people at an average speed of 69kmh, with event director Chris Selwood saying it was a practical demonstration of what the future might look like.

 

“ These incredible solar cars have been designed with the commercial market in mind and have all the features you’d expect in a family, luxury or sporting car, ” he said.

“ Team Eindhoven are to be congratulated on their achievement to date – clearly the most energy efficient solar car in the field, capable of generating more power than they consume.

 

“ THIS IS THE FUTURE OF SOLAR ELECTRIC VEHICLES.

 

WHEN YOUR CAR IS PARKED AT HOME IT CAN BE CHARGING AND SUPPLYING ENERGY BACK TO THE GRID.”

 

Team Eindhoven said its vision had been to build a family car with a balance between aerodynamic, aesthetic and practical design.

 

“We think we succeeded very well with a car that is more efficient than its predecessors and includes some state-of-the-art technologies to not only generate energy but also supply it back to the grid,” they said.

 

“Through a smart charging and discharging system, she charges the battery when the demand of energy from the grid is high and vice versa. Any surplus energy generated can easily be supplied back to the grid.”

 

===================================================

 

Dear  Shri  Gadkariji  :

 

I urge you ( – and will keep doing so ) to encourage ISRO to quickly come up with its own COMMERCIAL version of Solar Cars having “ Roof-top mounted solar panels “ , which it demonstrated , a few months back

 

This technology has following advantages :

 

  • No need to create an infrastructure of millions of Battery Charging Stations – thereby saving Lakhs of Crores of rupees ( whether private or public )

 

  • If Electric car owners , do not need to wait for 5 hours at a Battery Charging Station , and their cars continue to get charged even when driving or when parked on the road , their demand will go up dramatically

 

 

 

  • With sharp rise in demand for Electric Cars , production will rise and costs will drop

 

 

  • Solar Panel Roof cars will need , much smaller batteries , further reducing costs

 

 

  • Lower manufacturing costs and lower selling prices will do away with the need to subsidize , either the car manufacturers or the car buyers . If Electric cars become cheaper than petrol / diesel cars , who will want to buy these ?

 

 

  • There will be no need for dirty Fossil Fuel based electricity for those Charging Stations ( – since , no charging stations ! ) . Pollution due to coal-based power plants , will disappear !

 

  • If India seizes the “ FIRST MOVER ADVANTAGE “ in the manufacture of Roof Top Solar Panel mounted ( – and CHEAP ) electric cars , we can supply these ( EXPORT ) to the entire world , by setting up global scale factories , thereby generating huge employment

 

 

For a fuller picture , please read :

 

https://solarteameindhoven.nl/stella-vie/stella-lux/

 

https://myblogepage.blogspot.in/2017/10/3000-km-without-charging-station.html

 

https://myblogepage.blogspot.in/2017/09/gadkariji-is-angry.html

 

https://myblogepage.blogspot.in/2017/08/an-electric-future.html

 

https://myblogepage.blogspot.in/2017/05/solar-panels-charging-li-ion-batteries.html

 

17  Oct  2017

www.hemenparekh.in / blogs

 

 

 

 

 

 

 

 

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If You are Sincere , read this !

How  come  “  E Mail , E Mail – No  Reply “ ?

 

Business Line ( 05 Oct ) carries following news report :

 

 

“ Social Media puts positive pressure on govt : Jayant Sinha “

 

Interaction with students through social media creates a tremendous positive pressure on the government

 

If a school lacks in providing basic facility, people tweet about it . So , now there is a platform through which the issues can be addressed , said Jayant Sinha , Minister of Civil Aviation , at the India Economic Summit 2017 , which began here on Wednesday

 

Talking about the education system at a seminar, Smriti Irani , the Minister of Textiles and Information and Broadcasting , said :

 

“ for the first time we are discussing on how to make our education system better “, adding that ,

 

“ now if a person has a view on policy decision that the government is working on , then their views can be taken into consideration . Interaction is something which the government is focussing on and it’s not restricted to education but to other segments also “

 

 

I am not doubting the good intentions of Shri Jayant Sinha or Smt Smriti Irani or any other NDA Minister

 

Nor have I any illusion that the Ministers would ever find time ( from their very busy schedules ) to read those hundreds of E Mails re “ Policy Reform Suggestions “ that they must be receiving daily

 

But if there is a genuine desire for encouraging ordinary citizens to come forward with their suggestions , then I urge the Ministers for implementing the following procedure :

 

==============================================================================================================

 

  • A computer generated acknowledgement must go out against each email received . This will assure the sender that his suggestion has been delivered

 

  • The response must allot a unique “ Your Suggestion Number “ to each email

 

  • All emailed suggestions must be uploaded on the web site of the concerned Ministry and be searchable by the public in different ways , such as :

 

 

#   Suggestion Number

#   Suggestion Category

#   Keywords / hash tags etc

 

  • After log-in ( using Aadhar Number ) , citizens be allowed to “ Rate “ any suggestion ( of course , only once ) , on the following scale :

 

#   1   =   Irrelevant  /  Do not waste time

#   2   =   Useful /  To be evaluated by Policy Makers

#   3   =   Excellent  /  Must be implemented ( with changes , if required )

 

Any citizen-rater , should be able to see the CUMULATIVE  OVERALL  AVERAGE  RATING SCORE , but only after he / she has rated that suggestion – never before , to eliminate getting biased by earlier scores

 

  • Within a specified period ( say , 12 weeks from the date received ? ) , one of the following remarks , must be mentioned against each suggestion :

 

“ Based on the public rating and internal evaluation by the Ministry ,

 

#   Regret , your suggestion is not possible to implement

 

#   A similar / identical suggestion was received / evaluated earlier and rejected

 

#   Your suggestion is kept pending for future consideration . Keep watching !

 

#   Your suggestion is under active consideration by the Ministry for incorporating

in its  future policy-revision / regulation / parliamentary action

 

 

Once the Ministry has published its decision as mentioned above , the suggestion will be “ CLOSED  for  RATING  “

==============================================================================================================

 

Dear  Policy  Makers  :

 

Like in the case of ancient Roman Forum or in case of some of our very own kings , it is not possible for the Ministers to hold public DURBARS to obtain suggestions from public

 

Since you are aware of the influence of the Social Media , I urge you to adopt the process outlined above .

 

Such a process will be a genuine MANIFESTATION of a PARTICIPATIVE DEMOCRACY that goes beyond enabling its citizens to merely participate through ELECTIONS

 

15  Oct  2017

 

www.hemenparekh.in / blogs

 

 

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Full Steam Ahead ?

Prioritising  is  not  Easy  !

 

Monitoring is even more difficult  !

 

PM’s Economic Advisory Council met 2 days back and listed following 10 priority areas to work on [ Source : Economic Times / 12  Oct  ]

 

  • Economic Growth

 

  • Employment and Job Creation

 

  • Informal Sector and Integration

 

  • Fiscal Framework

 

  • Monetary Policy

 

  • Public Expenditure

 

  • Institutions of Economic Governance

 

  • Agriculture and Animal Husbandry

 

  • Patterns of Consumption and Production

 

  • Social Sector

 

 

“ The entire thrust of the Council will be on giving  SPECIFIC  IMPLEMENTABLE recommendations to the PM after consulting all stakeholder ministries “, Bibek Debroy, Chairman of the council, said after its first meeting on Wednesday

 

Business Line ( 12 Oct ) adds :

 

Addressing the media after the meeting , Bibek Debroy said :

 

“ Our entire thrust would be on IMPLEMENTABLE decisions .

Our views on the ten identified areas would be on SPECIFIC THINGS that you can change tomorrow ……. Five members of the EAC will take the responsibility of MONITORING the ten actionable areas  “

 

 

Dear Members of PM-EAC  :

 

Congratulations on your approach – especially on your emphasis on :

 

  • Setting SPECIFIC IMPLEMENTABLE targets for each Ministry

 

  • MONITORING the actual performance against the targeted performance

 

 

In this regard , I urge you to read my following blog ( earlier sent as email ) :

 

 

Monday, 4 September 2017

 

 

 

Clash of  RTI  vs  RTP

 

 

 

RTI   =   ( Citizen’s ) Right  to  Information

 

RTP  =    ( Government’s ) Right to Privacy

 

 

 

Yesterday , PM Shri Modiji reshuffled his cabinet  by :

 

 

  • inducting9 new faces ( considered to have “ potential for performance “ )

 

 

  • getting rid of 7 old faces ( considered to have “ poor performance“ )

 

 

  • promoting4 old faces ( appraised as having “ good performance “ )

 

 

  • laterally transferred Suresh Prabhu ( believed to have suffered “ bad luck“ )

 

 

 

Understandably , we will never get to see their “ Score Cards “ ( Privacy ? )

 

 

 

 

But here is my guess as to how these ministers got their performance evaluated

 

 

Possibly , Shri Modiji fixed for them SPECIFIC  MEASURABLE  ACHIEMENT  TARGETS , at the beginning of their tenures , as suggested in my following blog ( sent as email on 06 DEC  2014 ) , and got some outside / impartial THIRD PARTY to evaluate their ACTUAL ACHIEVEMENTS :

 

 

 

 

06  Dec  2014

 

 

BUDGETING     BY    OBJECTIVES

 

 

 

 

Dear Shri Jaitley ,

 

 

Come Feb 2015 and you will present your Budget in Lok Sabha

 

 

You will allocate thousands of crores of rupees to different ministries , for spending during 2015-16

 

 

You may even increase / decrease their allocations based on , to what extent ( % ) did they manage to actually ” spend” their current year’s allocations

 

 

The one and only emphasis is on ” spending ” !

 

 

As usual , no MP will ask :

 

 

”  But , what exactly did the Minister concerned achieve by spending this money  ?

 

 

What physical / measureable targets did the Minister succeed in reaching / exceeding , with that money  ?  Where / What are the  OUTPUTS  ?

 

 

Why is it that no targets were set in advance, before the start of the year ?

 

 

How come , Minister was allowed to shoot first and then draw concentric circles around the hole afterwards ( at the end of the year ) , to claim BULL’S EYE  ?  ”

 

 

In private sector , shareholders / bankers do not hesitate to sack the CMD / MD / CEO , if he fails to deliver on promised profit

 

 

Then , why are Ministers allowed to retain their posts ( – or even get kicked upstairs ! ), despite failing to deliver  ?

 

 

 

Dear Shri Jaitley :

 

 

MPs should know that YOU cannot answer these questions , simply because , at the time of the Budget Exercise , no physical OUTPUTS  got fixed for each Minister

 

 

What did get fixed , were only EXPENDITURE TARGETS  !

 

 

Simply because MPs passed the Budget without fixing targets such as following for 31 March 2015 :

 

=================================

 

 

*  Finance Minister

 

#   GDP ….. 6 % ………… [ 10 % improvement  ]

 

#   CAD…….( –  ) 5 % …..[  20 % improvement ]

 

=================================

 

*  Commerce Minister

 

#   Exports…….. $ 350 Billion  ….  [ 10 % improvement   ]

 

#   FDI…………..$    50 Billion…… [  20 % improvement  ]

 

=================================

 

*   Railway Minister

 

#   Lengths of Tracks…… 125,000 Km…..      [  Up by 10 %  ]

 

#   No of Passenger Trains / day….. 10,000… [ Up by 10 %   ]

 

=================================

 

*   Health Minister

 

#   Chronic Hunger and Hunger Related Deaths

8 Million / year ……………………………… [  Down by 20 %  ]

 

#   Under-nourished people….. 200 million….. [ Down by 10 %  ]

 

=================================

 

*   Social Welfare Minister

 

#    Dowery Deaths / year……. 8,000…… ……[  Down by 10 %  ]

 

#    People without Toilets…….. 500 Million….  [ Down by  20 % ]

 

=================================

 

*   Agriculture Minister

 

#    Farmers Suicide/ year….. .. 14,000……………  [ Down by 20 %  ]

 

#    Food Grain rotting / year….. 5 Million tons…..  [ Down by 20 %   ]

 

=================================

 

So on and so forth for each Minister

 

 

 

Some caution / suggestions :

 

 

*    Ignore the numbers given above. I could be factually wrong

 

 

*    Focus on the concept of ” Management by Objectives ”

 

 

*    Overcome the fear of ” failure to meet the targets “.

 

 

*    Overcome the fear of ” being ridiculed ” !

 

 

*    Don’t chop off the neck that dares to stick out  !

 

 

*    Only failure is , not fixing the targets  !

 

 

*    Actual vs Targeted achievements must be measured , on an on-going

basis , by totally independent THIRD PARTY agencies

 

 

 

Ministers / Finance Minister and these Agencies , must agree in

advance , how the agencies will go about ” measuring ” the Actual

Achievements

 

 

 

The method of measurement must be transparent and well publicized

in advance

 

 

Agencies shall have no role in fixing of Annual Targets

 

 

That is best done by the PRIME MINISTER – the CEO , MakeInIndia

 

 

 

*    There must be at least 10 performance parameters for each Minister

 

 

 

*    Parameters themselves could be selected / prioritized , based on an

ONLINE PUBLIC SURVEY / OPINION POLL , from Govt web site

 

 

*    If conducting such an ONLINE POLL for the forthcoming budget is

too late , same could be done on a printed form , by current MPs /

MLAs / Rajya Sabha Members

 

 

*    Results of the SURVEY / POLL , must be published

=======================================================

 

 

 

 

 

There is no way to find out whether PM had actually set for his ministers , any

 

 

QUANTIFIABLE  TARGETS or not

 

 

 

But the citizens have only themselves to blame for failing to come out with a, citizen’s

 

 

CHARTER  OF  DEMANDS  [  COD  ] ,

 

 

clearly laying down TARGETS  expected to be achieved by each and every Minister , till 2019 elections

 

 

 

Now , don’t expect political parties in OPPOSITION to frame such a COD

 

 

 

They are still hoping (against hope ? ) – to come back into power in 2019 , and do not want to say / do , any foolish things to come back to haunt them !

 

 

 

It is the duty of organizations such as CII – FICCI – ASSOCHAM – ADR ( Association for Democratic Reforms ) , and various THINK TANKS , to initiate this process

 

 

 

 

 

 

 

 

13  Oct  2017

www.hemenparekh.in / blogs

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This could be the Answer !

Why  this  narrow  focus  ?

 

Economic Times ( 11 oct ) carries following news report :

 

“ Govt is working on a roadmap for Emerging Tech “

 

The government is looking at forming a comprehensive strategy to ENCOURAGE and ADOPT , emerging technologies such as BLOCKCHAIN , Artificial Intelligence ( AI ) and Big Data Analytics

 

The idea is not just to increase their USAGE in the official machinery but also to PROMOTE the increasing number of emerging Start-Ups in this space

 

The exercise will also look at defining possible regulatory framework to take care of the PRIVACY as well as other regulatory aspects . Officials of the ministry of Electronics and IT gave a presentation to the Union Minister Ravi Shankar Prasad in the first week of September signalling for the first time that the government has decided to discuss a ROADMAP for these technologies

 

All of this is very welcome

 

But why are we confining ourselves to looking at / investigating / adopting , only Internet and Software related technologies  ?

 

There are dozens of other technologies which too need to be evaluated and acquired ( if found suitable ) from all over the World – and from within our own country – for solving extremely urgent problems facing the economy

 

If we fail to seize this opportunity , others will exploit these and might even monopolize these !

 

It was for this reason that in my following blog ( sent as email to Policy Makers ) , I had suggested creation of :

 

TEAM  [  Technology  Evaluation  and  Acquisition  Ministry  ]  ( 21  April   2017   )

https://myblogepage.blogspot.in/2017/04/need-of-hour-team.html

 

 

In that email , I had listed some 10 / 12 technologies which ( in my opinion ) , could be deployed for attacking some of the pressing problems

 

And one of those “ pressing problem “ is urban traffic which is dominated by cars which cause following problems :

 

  • Traffic congestion slowing down vehicular traffic to barely 10 km / hour

 

  • Parking problems

 

  • Pollution

To overcome these problems , I had suggested fast adoption of Geo-Orbital Electric Wheel

 

If you are wondering how a bicycle WHEEL could be ELECTRIC and whether it can replace cars / motor-bikes , ( for short distances , up to 10 Km ride ) , then click here :

 

https://www.startengine.com/geoorbital

 

Do read :

 

A  Radical  Radial  Revolution  [  18  Aug  2016  ]

https://myblogepage.blogspot.in/2016/08/a-radical-radial-revolution.html

 

 

12  Oct  2017

www.hemenparekh.in / blogs

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There are simple solutions !

To Buy  or  not  to  Buy  ?

 

That is the question that EESL should be asking  !

 

Economic Times ( 07 Oct ) carries following news report :

 

“  EESL  Plans to let Private Sector into EV leasing  “

 

Energy Efficiency Services (EESL) plans to open up  vehicle leasing programmes  to private institutions in its push towards vehicular electrification.

The firm, which recently awarded a tender for procuring 10,000 electric vehicles (EVs), said the contract was the first of many as there are over half a million vehicles with the Centre waiting to be replaced with those equipped with electric power trains.

 

 

There are also opportunities in the corporate market for leasing EVs.

 

EESL managing director Saurabh Kumar told ET, “ We may open up to private institutions… They can set up charging points for vehicles leased in the company name and in that way avoid regulatory hurdles over the sale of electricity.”

 

At present, the Electricity Act prohibits the sale of electricity by anyone except the distribution licensee.

 

 

If a private firm sets up charging points for vehicles leased under the company name for use by employees, the regulatory hurdle can be eased and at the same time, environmental concerns will stand addressed.

 

“We have specified a minimum range of 130 km for the EVs we are procuring in the tender. Most vehicles used in intra-city operations cover a daily distance of 80 km.

 

Corporates can have charging stations in offices for powering leased vehicles when idle. Even after taking the tariff for electricity into account, the operating cost of an EV is one-sixth of that of a petrol one,” Kumar added

 

Bulk acquisition of EVs by EESL, Kumar said, would help bring down purchase price and spur demand. “Leasing will work in the commercial space. And also help bring down procurement costs,” said VG Ramakrishnan, managing partner, Avanteum Partners LLP.

 

Overall, EESL plans to acquire 10000 electric vehicles for replacing the fleet in the power, coal, new and renewable energy ministries by June 2018.
 

There is no doubt , as compared to buying / owning EVs , private commercial companies would benefit by leasing out the cars from EESL

 

 

Companies ( leasing the electric cars from EESL ) , can write off the lease-rent as tax-deductible expense

 

 

But  EESL –  the car-owning company ( the company leasing out those cars ) , can only claim, 10 % depreciation !

 

 

And just sell off those “ owned “ cars as SCRAP , after 5 years !

 

 

Therefore , it makes sense , even for EESL itself , to float a tender for “ leasing “ rather than for “ buying “ those 10,000 cars

 

 

Apart from this , there are other reasons why I advocated that EESL itself should float a tender for “ Leasing “ instead of “ Buying “ those 10,000 EVs

 

 

Read my blogs :

 

=======================================================

 

EESL  ,  lease  cars  , do not buy  !  [  16  Aug  2017  ]

 

https://myblogepage.blogspot.in/2017/08/eesl-lease-cars-do-not-buy.html

 

=======================================================

 

Waiting  to be proved wrong  !   [  30  Sept  2017  ]

 

https://myblogepage.blogspot.in/2017/09/waiting-to-be-proved-wrong.html

 

 

https://myblogepage.blogspot.in/2016/03/piyush-plan.html

=======================================================

 

 

 

 

And should EESL “ lease “ these cars from TATA / M&M , I don’t think , there is any law which would prevent EESL to, in turn , sub-lease these very cars to government departments or to private commercial firms !

 

 

So , this leasing ( instead of buying ) , would save the government exchequer , a huge sum ( Rs 1100 crore ) by way of initial investment

 

 

And , as explained in my above-mentioned blog :

 

 

  • EESL could lease these ( 10,000 ) cars ( from TATA / M&M ) at Rs 15 per km

 

  • EESL would sub-lease these to Govt Departments at Rs 27 per km

 

 

 

Hence , per km , EESL would make a gross margin of Rs 12 ( Rs 27 – Rs 15 )

 

 

For 20,000 km / year / car , that would amount to gross margin of  Rs 2.4 lakh

 

 

For 10,000 cars , that would add up to , Rs 240 Crore  !

 

 

And , that Rs 15 / km ( Rs 3 lakh/car/year ) that EESL would pay to TATA / M&M by way of “ lease rent “ , would be treated as “ tax deductible expense “ !

 

 

A neat sum of Rs 300 Crores  !

 

 

IT MAY BE POSSIBLE TO STILL AMEND THE ORDER FOR THE BALANCE 9,500 CARS

 

 

“ Outright Selling “ of cars by car-manufacturers , translates into “ Car Ownership “ ( for who-so-ever is the buyer , even a private citizen )

 

 

This is something that Shri Nitin Gadkari wants to get away from , in order to promote the concept of “ Car as a Transporting Service “ , through more public transport

 

No doubt , Electric Vehicles will reduce air pollution

 

But “ Electric Public Transport “ will not only reduce air pollution , it will also dramatically reduce “ Traffic  Congestion “

 

 

Question is :

 

How can government discourage “ Private Ownership “ of vehicles ( even if electric ) and encourage “ Electric public Transport “ ?

 

 

Here are some suggestions ( – some covered by my earlier blogs ) :

 

 

#   Incentives to Electric Vehicle Manufacturers  :

 

( to become global exporters of EV , as suggested by Shri Amitabh Kant , CEO

– NITI Aayog )

 

 

 

  • Reduce GST from 12 % to 5 %

 

  • Reduce Customs Duty on Lithium-ion Batteries from 26.5 % to 12 %

 

  • Make “ Lease Revenue “ exempt from corporate income tax ( = cheap self finance for working capital needs of the manufacturers  ? )

 

  • Make “ Scrap Value “ ( upon expiry of lease term of leased cars ) , tax exempt

 

  • Make available for FREE , ISRO technology for 50 Ah / 100 Ah lithium-ion battery packs ( under development by Automotive Research Association of India )

 

  • Direct Benefit Transfer ( DBT ) of the Carbon Credits earned , into the accounts of EV Manufacturers , as detailed in earlier blog “ Piyush Plan

 

Only with such “ Out of the Box “ reforms , it will be possible for Auto Industry to gear up for a 10 % EV production increase each year , so as to reach 100 % in ten years , between 2020 – 2030

 

 

#   Incentives to “ Electric Public Transport “ owners ( taxies / buses / rickshaws etc ) :

 

  • No GST on provision of “ Transport Services “ to corporates or individuals

 

  • No road tax / municipal taxes

 

  • Free charging at Charging Stations set up by PSUs ( NTPC – BHEL – IOC – HP )

 

  • Free parking in “ Pay-and-Park “ plots

 

  • No income tax ( personal or corporate ) on business income

 

 

#   Incentives to CITIZENS , for using PUBLIC TRANSPORT :

 

  • Incentive Scheme for citizens who wish to exchange their existing petrol / diesel vehicles ( 2 wheeler / 4 wheeler ) for Electric Vehicles

 

  • Incentive Scheme for citizens who do not own ANY vehicle and buying an EV

 

#   Incentive for large Co-operative Societies who come forward to set up Battery

Charging Station within the society premises , for use by Members and the Public

 

 

Dear Shri Gadkariji / Shri Amitabh Kantji :

 

 

I hope some of the above mentioned suggestions will find a place in the Road Map for Electric Vehicles

 

11  Oct  2017

 

www.hemenparekh.in / blogs

 

 

 

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