WAKE UP INDIA FROM DEEP SLUMBER
(A LAYMAN‘S THOUGHTS)
(The
views expressed in this write up
represent writer’s own views and not of any organization or institution or any party nor are intended to offend or defend
any constitutional institution or governmental instrumentalities)
By
Prahalad
Rao, Consultant, B-10F, Vatika Apartments (MIG), Mayapuri, New Delhi -110064
(Mob: 9212151469 Email: prahaladrao76@gmail.com)
1.0
INDIAN FREEDOM AND REPUBLIC
(a) We are approaching Sixty Seventh Year
of our Independence.
(b) Fundamental Duties in the Constitution
of India make it a duty for every Indian to cherish and follow the noble ideals
which inspired our National struggle for freedom.
(c) Freedom Movement that led India attaining Independence is a forgotten
word in Today’s India.
(d) Great sacrifices by people of India
hardly reminds us today to remember them.
(e) Independence Day is observed as a
ritual. Speeches do not even make
reference to Freedom Fighters. Is this not a tragic truth of ungratefulness?
(f)
Build
“India Freedom Tower” with a Museum to give a glimpse to the present and future Generations on freedom
struggle of India.
(g) Two minutes silence on Independence
Day will be a befitting Mark of Respect
and Homage to Freedom Fighters.
2.0
NATIONALISM, NATIONAL CHARACTER AND NATIONAL
PRIDE
Ø
Nationalism,
National Character and National Pride remained outside the domain of ruling
class since Independence eroding and eating away the core strength of the Nation..
Ø
Nations
survive not by modern weaponry but by strong commitment, honesty, sincerity and
gratefulness which form essence of National character and National Pride and a Nation
without them is like holding in hand an empty barrel.
Ø
Nationalism,
National Character and National Pride conjoin people and make Nation free of
corruption, dishonesty, insecurity, greed, selfishness, discrimination,
communalism and anti-Nationalism. A Nation bereft of them is like building a
castle on sand waiting to stumble. A
wake up call to every citizen.
Ø
We
voice collectively as “BHARAT MATA KI
JAI”. Bharat is India and India is Bharat. Our Mother
is Bharat Mata. There is Indian Blood in every Indian. Yet,
considering Indians differently based on caste, creed, religion etc. or in demanding
graft in official work is treacherous. Remember! The Generations to come will
not forgive such Indians.
Ø
Those
who indulge in corruption in discharge of their Official Duties and those who
indulge in unlawful and illegal means to enrich themselves are at par with dacoits
with only difference that the methods followed are different, the former do it
in a seemingly lawful and honorable way and the latter do it as part of their
profession y liable for severe punishment
which is not so in the former case where they find escape routes by placing
someone else as a scapegoat who, with all the innocence on his part, faces the
criminal proceedings which extend 15-25 years when the Courts may find him as
not guilty of the offence charged.
Ø
A
child learns what its parents talk or do regardless they are good or bad and
believes them as true and right. On
growing as an adult, it continues to follow the same as the only truth that having talked or done by its
parents.
Ø
Today’s
chaos and concerns being echoed in the families and in the country is the
result of the parents footprints the child or adult continues to follow. Serials,
most of them exhibiting hatred, revenge, crimes, harsh language as well as unwholesome
advertisements on and films on television impact on growing children and adults. This is the malaise acting badly
against building Nationalism, National Character and National Pride among the
teens and adults.
Ø
Stretching
Freedom of Speech and Expression guaranteed to the citizen under the
Constitution overzealously in serials, advertisements and films etc. could lead
to a social explosion and exploitation of innocent teens and adults. Urgency
begs the authorities concerned to act swiftly, put in place suitable guidelines
based on the judicial pronouncements to save sociologically, physiologically
and psychologically afflicted younger
generation and adversely affecting fabric of character and conduct of the citizens
in general
Ø
All
the “Isms” when merge into one “Ism” become “Nationalism”. National character
reflects the character built by the parents and the schools, the roots for the
children and adults. That which moulds a child or adult into a good conduct and
character at home and in school imbibes a sense of duty to the Nation
transforming it into Nationalism and National Character which together form the
National Pride, THE ULTIMATE STRENGTH OF THE NATION.
Ø
Sacrifices
of soldiers and civilians during sixty six years of Independence and those
sacrificing for the country presently or in future. call for their
glorification. Build for them “INDIAN REPUBLIC MARTYRS TOWER” WITH A MUSEUM to
keep them abreast with the Generations to come. Two minutes silence on Republic
Day is a worthy mark of respect and homage to them.
Ø
Induct
Nationalism, National Character and National Pride as part of curriculum in schools and colleges
exemplifying heroic and exemplary deeds of Freedom Fighters as well as of those
soldiers and civilians who sacrificed for the Nation during the past sixty six years and those
sacrificing for the country in future.
Ø
Enforce
Fundamental Duties enunciated in the Constitution through enactment of Public Accountability Law which should include
-
(i)
Self
and Public Discipline, National Character and National Pride making them fundamental
requisites for National development for every section of the society,
corporate, service providers, public servants and people..
(ii)
Ban
naming castes, creeds, class, religion by anyone other than for official records for governance, welfare and
administrative measures to secure them self respect and dignity..
(iii)
Every
authority be made accountable to people in the same manner as each authority
wants people to be accountable.
(iv)
Educating
people against disorderliness, disturbance, destruction, disobedience and
disrespecting rule of law with suitable means and mechanisms to prevent their
occurrence and recurrence to save loss of lives and public property.
(v)
Incorporate
a code of conduct for the serial makers, advertisers on television and film makers to observe and
follow rulings given by the Supreme
Court on Freedom of Speech and Expression in order to create a healthy and
wholesome environment for the betterment of the society and in particular the
younger generation.
(vi)
The
Law may impose stringent preventive and punitive measures for breach or
contravention of any of its provisions.
(vii)
The
provisions of the proposed law should be in addition to and not in derogation
of the existing laws.
Ø
Economic
and Social Growth and National Security call for a strong bedrock of values and
virtues of life, conduct and character and a sense of brotherhood and
sisterhood among religions, castes,
creeds, class, the people and politicians to evolve into oneness as the path for ever rising Prosperity for the PEOPLE and Glory to the
Nation. When this happens, the Nation looks in one color mitigating the
Poverty, the “Mantra” recited by Politicians,
Economists and Sociologists day in and day out.
3.0
CONSTITUTIONAL ORGANS INTER - RELATIONSHIP
– INNOCENT ANOMALIES
(i)
Constitution
does not state that Council of State and
House of People ares supreme rather its Preamble proclaims the PEOPLE as
supreme..
(ii)
Both
Houses are one among the Constitutional Organs and not one within themselves.
(iii)
Equality
among the Constitutional Organs is the foundational spirit and faith of the
Constitution.
(iv)
Each
Constitutional Organ has its own constitutional duties and obligations to be discharged.
(v)
The
order of standing of Parliament envisaged under the Constitution is President,
Council of States with Vice President
as its Ex-officio Chairman and the House of People headed by the
Speaker.
(vi)
Both
Houses determine by law salaries and allowances
etc of the President, the Chairman of Council of States, Speaker, the
Deputy Speaker of the House of People
and other Constitutional Organs.
(vii)
Both
Houses determine themselves by law
salaries and allowances of their Members which, with all respect to
Constitution makers, is constitutionally unfair and unequal in democratic sense.
(viii)
Salaries,
allowances etc. of the Members of both the Houses should be determined by the
President on the basis of recommendations of a Joint Committee of Chairman of
the Council of States, Speaker of the House of People and the Comptroller &
Auditor General of India to maintain equilibrium among the Constitutional Organs
(ix)
The
Governor of the State should determine the salaries and allowances etc. of the
Members of State Legislative Council/State Legislative Assembly on the basis of
recommendations of a Joint Committee of Chairman of Legislative Council, where exists,
the Speaker of Legislative Assembly and the Comptroller & Auditor General
of India represented by the State Accountant General.
(x)
The
powers to make law to conduct own business by the both the Houses /Legislative
Council (where exists)/Legislative Assembly is also constitutionally not fair
as it amounts to self governance without any checks and balances, the absence
of which is sending unhealthy signals to
the people, in particular, to the growing Generation.
(xi)
Rules
governing conduct of business of both
the Houses should be determined by the
President on the basis of the recommendations of a Joint Committee of the Chairman of the Council of States, the
Speaker of the House of People and the Chief Justice of India.
(xii)
The
Governor on the basis of the recommendations of a Joint Committee of Chairman of the Legislative Council l(where
exists), Speaker of the Legislative Assembly and the Chief Justice of High
Court should lay down Rules governing conduct of business.
(xiii)
Existing
provisions in the Constitution in respect thereof need to be amended to give
effect to the above suggested approach that will demonstrate the democratic
maturity and sanity of the Constitutional Organs. These measures will mitigate
existing variants and establish equilibrium among the Constitutional Organs.
(xiv)
Telecasting
of proceedings of both the Houses is showing children, young and elderly
persons actual happenings in both the Houses. These happenings include the
normal proceedings as well as shouting,
walkouts, inter-parties aggressiveness which are sending a wrong message to the
Nation.
(xv)
It is incumbent upon the respected and learned
Members of both the Houses to realize this reality and show a more responsive
and positive attitudes during the proceedings to correct the misgivings and
help grow a healthy culture and environment inside and outside.
(xvi)
Walkouts
and adjournments may be members rights and privileges but considering the
public expenditure involved in convening and conducting proceedings of the
House Sessions, it is expected that such incidences are minimized as far as
possible to ensure smooth functioning of the proceedings and completion of the
Business of the Houses in hand. This aspect also needs to be accorded due
consideration in the suggested Conduct of Business Rules for both Houses.
(xvii)
Two
Houses only enjoy the entire powers of amendment of Constitution This means
that both these Organs can take away the constitutional powers
vested in other Organs of the Constitution or may even abolish a Constitutional
Organ altogether under their amending powers.
(xviii)
Basic
structure or features of the Constitution contained in judicial pronouncements should
be explicitly incorporated to safeguard
mutual interests of the Constitutional Organs, the people and the country.
(xix)
Upholding
the democratic values and virtues is the responsibility first of both the
Houses and other Constitutional Organs
and then of every citizen.
4.0
CONSTITUTION, PRESIDENT AND COUNCIL OF
MINISTERS
(i)
The
executive power of the Union is vested in the President and is exercised by him
either directly or through officers subordinate to him in accordance with the
Constitution
(ii)
Council
of Ministers with the Prime Minister at the head is to aid and advise the
President who shall, in the exercise of his functions, act in accordance with
such advice: President may require the Council of Ministers to reconsider such
advice, either generally or otherwise, and the President shall act in
accordance with the advice tendered after such reconsideration. This provision
in the Constitution is with respect to exercise of functions by the President.
(iii)
Among
the Cabinet, the both the Houses, only
the President is sworn to preserve, protect, and defend the Constitution. Like
a Supreme Court judge, a Member of Parliament swears to bear true faith and
allegiance to the Constitution. In addition to taking an M.P.’s oath, a Cabinet
minister takes an oath of secrecy. It stands to reason then that the Cabinet,
which has sworn to work within the four corners of the Constitution, would
never tender any advice to the President.,
(iv)
However,
if the President rejects the Cabinet’s advice for the first time on the grounds
of it being unconstitutional, merely tendering the same advice again would not
cure the vice of unconstitutionality. Therefore, it cannot be said that an
advice has been constitutionally tendered at all. The President, when in his
opinion, considers accepting advice would place him in violation of the
constitutional duty to protect, preserve, and defend the Constitution, he should act according to his discretion.
(v)
The
President is the Head of the Organs of the Constitution. He is bound by the
Oath of Office taken by him. Each Constitutional Organ is placed with
constituent duties, responsibilities, obligations to be discharged and powers
to be exercised, under the Constitution.
(vi)
The
House of the Representatives and the House of People do not enjoy legislative
jurisdiction to amend any of the constituent powers and discretions conferred
upon other Organs by the Constitution, more so, of the President of India.
(vii)
Amendments
made so far exercising legislative powers by both the Houses affecting the
powers as originally conferred upon the President by the Constitution acted
prejudicial in due discharge of his
duties and exercise of powers according to the Oath of Office taken by him and,
are therefore constitutionally not valid.
Such powers and discretions are integral part of the President of India under
the Constitutional Scheme to protect the Constitution, the People and the
Country whenever the exigency and expediency so warrants.
5.0
THE CONSTITUTION AND THE POLITICAL
SYSTEM
(i)
Dawn
of Independence saw three political parties on the country’s political scene.
Fortunately for few and unfortunately for the people and the country, in course
of time, the process of splitting the parties set in on so called ideological
differences.
(ii)
Politicians
who were expelled for breach of Parties Bye Laws or denied ticket for contesting election thought
best to form a new party which way the political parties started multiplying.
(iii)
Regional
parties began emerging making major
parties dependent on them. How the governments were run in coalition
with the regional parties during the past ten years does not need to be told.
(iv)
Growth,
development and security of the Nation is entirely dependent on a strong and
stable political system but unfortunately for reasons stated above, the
political system started further worsening threatening serious consequences to
the country.
(v)
Emergence
of a majority party in recent elections augurs well for the Nation and the
people and showed the maturity of the people to uphold the democratic values
and system.
(vi)
It
cannot, however, be assumed that the same pattern stands established and will
continue in years to come. This is so because multiplying parties have been
playing multiple games having solely the self interest. Until the political
parties cut down to minimum acceptable level in keeping with the size of the
country, the future remains unpredictable.
(vii)
In
this context are the following few submissions:
(a) Parliament should amend The Peoples’
Representation Act that mandates the Election Commission to recognize only that
party which should have authentic minimum number of members at National Level
and States Level so as to maintain not more than three Political Parties at National
Level and at the State Level.
(b) This will make the prevailing multiple
political parties to converge and merge to qualify themselves for recognition. This helps plug and control leakage of public
money in various forms and will go a long way in establishing political and
financial discipline.
(c) Establish “NATIONAL ELECTION FUND
(NEF)” under the sole control of the Election Commission to be applied and
administered according to the rules to be approved by the Parliament in that
behalf
(d) The rules must mandate that all the
political donations and contributions permitted under the relevant laws of the
country should be paid into the NEF. In proportion to such contributions, the
Central Government should contribute to the Fund.
(e) The rules also must provide that
contributions by anybody or accepting political donations or contributions by
the political parties or by any their member(s) otherwise than as specified in
the rules will be a ground for de-recognition
of such party.
(f)
Electioneering
expense to be incurred by the recognized parties either in the case of National Elections or
State Elections should be made available from Fund by the Election Commission in
the ratio of the members of the Party to the total members of all the Parties
together at the National or the State Levels.
(g) Fees collected by the political
parties for enrolment as party members and the funds made available from out of
the NEF in accordance with the rules should only be the source of funds for the
parties for the purpose of election expenses..
(h) This will open a NEW CAHPTER IN INDIAN POLITY and will
demonstrate the wisdom and maturity of the POLITICAL PARTIES TO STAND UP TO THE
NATIONAL CALL OF THE HOUR.
(i)
Make
it mandatory by law that election of Office Bearers of the Parties shall be by
normal voting process and not through consensus or on the basis of High Command
directions. This will provide to the person elected comfort of confidence and
places a higher level of onus and responsibility for performing the functions.
(j)
Make
it also mandatory by law that election of Prime Minister and Chief Ministers
shall be by normal voting process and not through consensus. This will provide
to the person elected comfort of confidence and places a higher level of onus
and responsibility for performing the functions.
(k) As per the Anti-Defection Act, 1985, a
'defection' by one-third of the elected members of a political party was
considered a 'merger'. Such defections were not actionable against. This was changed through the 91st Constitutional Amendment Act, 2003
according to which now at least
two-thirds of the members of a party have to be in favour of a
"merger" for it to have validity in the eyes of the law. "The
merger of the original political party or a member of a House shall be deemed
to have taken place if, and only if, not less than two-thirds of the members of
the legislature party concerned have agreed to such merger.
(l)
Even
the law as amended on anti-defection against the political parties is being
more misused than properly used according to intended letter and spirit of the
Act. Ten years since the introduction of the amendment in 2003 have amply shown
how the political parties have used the amended provisions of the Act.
(m) Time has come now for the people who
elected a member to recall such member if such member has defected either
individually or as part of a group of the members from one party to another
party exercising their inherent right of vote of no confidence against member
or members by submitting a Notice attaching therewith a Resolution duly passed
and signed by a majority of the electorate who elected the member or members as
their representative (s) verified by the Block Electoral Officer to the Speaker of the Hose and, the Speaker of
the House, on receipt of such Notice and
the Resolution, if satisfied, should disqualify the member or members from the
House and, if not satisfied, respond to the Notice and Resolution so received
giving reasons as to why the Speaker did
not consider it necessary to disqualify the member or members.
(n) If the process in (m) is adopted, the
existing Anti-Defection Law should be annulled altogether.
(o) If the process in (n) is considered as
not proper, then the existing Ant-Defection Law should be further amended
barring totally any defection in whatsoever manner from one party to another
party, if such defection is made, the member or the members so defected should stand
disqualified as member or members of the House.
(p) Defection of member or members from one
party to another party is the greatest threat to the stability of the political
system whether at the federal level or at the states level. There is abundant
past evidence how such defections weakened the democratic functioning due to horse-trading occupying the dominant
role in the whole process of defection and unaccounted money becoming most attractive..
(q) This should be stopped once and for
all and the purity and sanity of the political parties and the stability of the
political system must be maintained at whatever action and cost it calls for as
it is the political stability alone that matters most in the democratic system
and the entire security, development, welfare and protection of the citizens of
the country rests on this foundational strength.
6.0
NATION AND SECULARISM
(i)
Secularism
has always carried a strong connotation
of the desire to establish an autonomous political and social sphere which is
naturalistic and materialistic,
as opposed to a religious realm.
(ii)
Secularism
is a highly abused word in the country. It has been reduced to a slogan and a
form of publicity, for every electoral gain. It takes on the color that every
cynical politician seeks to give to it. Its indiscriminate and mechanical
overuse for short-sighted political ends has deprived it of meaning.
(iii) Secularism is express and inherent in
the Constitution which is being exploited by the political parties altogether
differently in its essence embodied in the Constitution. Secularism as
enshrined in the Constitution has no connection or relationship with any
religion, caste, creed, class etc. which make India together but it has to do
with equal rights, privileges and opportunities to each one of them so that the
aspirations of each one of them are achieved through their economic and social
growth which are fundamental to dignity of living and self respect.
(iv) One can enjoy its faith according to
its own religious mandates but that is something ritualistic to each individual
of such religion to be absorbed by each of them as part of their private life
and family and religious tradition. Such sacrosanct acts and deeds have their
respect and place within one’s heart, home and within one’s worshipping place.
All this is intended to invigorate self spiritual development which is as essential
as physical development both of which are outside the Secularism Concept. Secularism in its every sense and meaning aims
to build economic and social growth with equal opportunities free of any
discrimination for every citizen regardless of religion, caste, creed, class
etc. which are integral part of welfare and wellbeing of the citizens of the
country.
(v) Co-exist is the Lone Call of the
Creator and cry of every Soul on Mother Earth to GROW COLLECTIVELY which helps
us move hand-in-hand and ensure every citizen more and more progress and
prosperity.
(vi) Saints of all Faiths from time
immemorial practiced and taught values and virtues of life – the spirituality
- for one’s wellbeing and wellbeing of
the society one lived with. Values and virtues of life so given to us by Saints
of our respective Faiths remain valid for ever.
7.0
NATURAL CALAMITIES
(i)
Country
has been witnessing natural calamities every year prior to and after the Independence.
These are treated routinely and forgotten. Reliefs are said to be not reaching
the needy.
(ii)
Existing
machinery and mechanism has failed to meet challenges as evidenced by recent
floods in Uttar Khand as well as in the past in the country.
(iii) Enact law on Prevention, Preparedness,
Control and Management of Natural Calamities including accountability and penal
provisions.
(iv) Create an independent Department under
the appropriate Ministry to deal with Natural Calamities.
(v) Merge existing Government bodies,
agencies etc. under the new Department. Also Bring NGOs seeking funds for and
dealing with natural calamities within the ambit, control and supervision of new law and the new Department.
(vi) Financial resource allocation spread
out among various Ministries, Departments, NGOs etc. for Natural Calamities may be pooled and
placed under the sole control and management of the new Department.
(vii)Place all aids, grants etc. received from within and
outside country for Natural Calamities prevention and relief under the
control of new Department.
(viii)
Demonstrate
purposeful utilization of available funds to create trust which itself will ensure
flow of more and more aid and assistance.
(ix) Earmark a percentage annual
contribution from Prime Minister’s Relief Fund for utilization by the new Department.
(x) Make new Department solely responsible for survey, identification
and assessment of areas prone to Natural
Calamities and for initiating and implementing
appropriate schemes and measures aimed at –
(a) Permanent remedies for prevention and
reliefs.
(b) creating awareness, preparedness and
prevention
(c) minimizing loss of human and other lives and property,
(d) Ensuring permanent rehabilitation of
affected population with protective and proactive action and support.
(e) Proposed Law should place similar obligations
and responsibilities on the States and that Central Government Department should aid and assist such State Department
with supervisory powers and accountability report on the proper utilization of
funds provided to the State.
8.0
ECONOMIC AND SOCIAL GROWTH CONUNDRUM
(i)
Economic
and Fiscal Reforms to aim at strengthening economic and social growth.
(ii)
Economic
reforms suppose to provide newer opportunities in every walk of life and
activity of the country that apply the available resources or bring additional
resources to first establish stability to existing economic conditions and then
move towards exploring new natural, industrial, agricultural and other areas offering scope and potential for
enhancement of capital investment creating along employment opportunities, increased
production and build up to meet the national demand, decreasing the import
needs and increasing export capabilities, together generating much needed
additional wealth for the continued sustainability and stimulation of economic
growth to support the social growth of the nation.
(iii) Economic reforms presuppose
preparation of reasonably acceptable level of infrastructure facilities in
every sector including educational infrastructure and upbringing, congenial
policy structure, simple and streamlined systems and procedures with zero scope
and tolerance for abuse and misuse of powers
which lay the foundation for inducement for investments in various sectors opening doors for plenty
and prosperity to the people in the areas thus improving their social growth
and security leading them to a new way of life.
(iv) This is social growth through economic
growth. To think social growth independent of economic growth and social growth
can be achieved through free or administered distribution in kind and cash is to reverse the economic growth with
adverse effects and pressure upon available national wealth with possible
financial crisis and serious economic and social risks and challenges. Such an
approach is like putting cart before the horse.
(v) Economics teaches us a simple lesson.
National wealth creation comes through economic growth and economic growth
comes through sagacious and sound
economic reforms and policies linked to live wire of generating and laying
ground for invitation and involvement of institutions, industries, farmers,
servicing communities including financial, commerce, trading and people of all
walks of life including rural population in activities that open up continual
opportunities in areas endowed with potential scope for development that help
create economic wealth for the nation and
assures a decent and dignified livelihood to one and all thus transforming
social growth through economic growth.
(vi) Economics also teaches us that the
expenditure, in whatever way is made by the Governments, must produce a product
or service worth at least one and a half times if not two times of the
expenditure made, except in cases of reliefs and charities. This is where the
creation of job opportunities for the people originates and takes the progress
forward for creation and for sustaining a sound and solid National Wealth Base.
(vii)Creation of capacity for the people to earn and lead a
self reliant life through newer employment opportunities and self organized
economic activities is the corner
stone of social growth alongside the economic growth.
(viii)
Bestowing economically weaker section, tribal
and backward people benefits through economically productive schemes and
measures aimed at attaining themselves self development and economic
sustenance, ensuring that the benefits intended really reach their doors..
(ix) Economic growth can happen through –
a.
Infrastructure
development with speed and expediency.
b.
Achievable
time line
c.
Government
should assume pivotal role.
d.
Private
Sector participation or PPP Models do not suit for development of
infrastructure facilities since the infrastructure development by its very nature
is not done on commercial approach which is the basic consideration for any
private sector participation or PPP model but on a developmental approach which
can be done only by the Governments to trigger, industrial, commercial and
socio-economic movement. The Infrastructure Development creates commercial
potentiality but by itself cannot be a commercially based activity. It
underscores the peoples’ welfare and wellbeing by giving potential and scope
for industrial and commercial growth which help people to earn their bread.
e.
Last
decade demonstrated beyond doubt the multifarious effects and impacts on the
goods and commodities markets how their prices have risen due mainly to ever
increasing User charges of energy, more in particular, the electricity charges,
gas and petrol charges, freights, airport and airfare charges, all of which have direct bearing upon the
upward inflationary behavior in the financial system. Privatization of
infrastructure development has, to a great extent, contributed upward
inflationary conditions in the country because of the sole consideration for
the private sector being the commercial attitude in their business.
f.
Reliance
on Private Sector needs to be reassessed as Private Sector, as the past two
decades have shown, is shy of entering into infrastructure development setting
the growth clock back especially in the Power Sector which is the life line of
economic and socio-economic development.
g.
Even
in cases where the Private Sector has been able to make a short success in
infrastructure development like power sector, airports, telecommunication etc.,
the User charges are becoming unaffordable for an ordinary citizen, the reason
being that Private Sector has been treating infrastructure services being
provided by them purely on commercial considerations similar to those they
apply for industrial and commercial purposes.
h.
Increasing
User charges at regular intervals is also impacting the overall prices of the
commodities and the services. Is it the only
means and end of achieving National Objectives overlooking the glaring
living conditions of the general public and where is the point at which
increasing of User charges will stop? Ensuring efficiency in operation,
management and administration is a forgotten word both in the Private Sector
and the Regulatory Regime. Infrastructure Development therefore aught not to be
considered as commercial activity but fundamentally a basic development
activity.
i.
Private
Sector participative initiatives will begin only after infrastructure
facilities are in sight. These participative initiatives are not in relation to
further infrastructure development but will be in relation to
industrialization, commercialization and socialization which open numerous
opportunities to the people in the areas which alone can truly make the people
self earning and living with dignity of life. No amount of free supplies in
kind or cash to the people even for those who are below the poverty line can
incentivize and induce developmental activities which are the backbone for the
social wellbeing. Such free supplies are a myth built on the so called social
security rather economic security for the people.
j.
Financial
support through plan funds for infrastructure development as was prevailing
till late eighties is best suited and practical for the Infrastructure
Development which will maintain a minimum impact on the general public.
k.
There
are several avenues and ways for resourcing funding infrastructure development
and for boosting the growth opportunities. These could be as illustrated below
which would be in addition to and not in substitution of the existing funding
means of infrastructure development. Exclude the private sector participation
or PPP model for reasons stated above:
(a) Floating INFRASTRUCTURE DEVELOPMENT
BONDS (IDB) by the Central Government through the RBI Debt Management
Department.
(b) Floating of INFRASTRUCTURE DEVELOPMENT
GOLD BONDS (IDGB) by the Central Government through the RBI Management
Department.
(c) Floating of INFRASTRUCTURE DEVELOPMENT
SPECIAL BONDS (IDSB) by the Central Government through the RBI Debt Management
Department.
(d) Potential sources and salient features
of the Bonds:
|
Type of Bonds
|
Potential Sources
|
Salient Features (Terms and Condition)
|
Justification
|
|
(a) INFRASTRUCTURE DEVELOPMENT BONDS (IDB)
|
·
Domestic Investors
·
Foreign Investors
·
Multilateral
Agencies
·
Bilateral Agencies
|
Ø Seven years tenor with lock in period of five years.
Ø Redemption at the end of the seventh year.
Ø Interest @ 7% per annum payable half yearly by Interest Warrant
Instruments.
Ø Income Tax exemption up to fifty percent of the interest
earned.
Ø Recognized Instruments for investment by various bodies
under the appropriate laws.
Ø Both Bond and Interest Warrants Transferable by Endorsement and Delivery
which has the benefit of negotiability and liquidity which have great attraction to the
investors.
Ø Exempt from Stamp Duty
Ø Other Terms and Conditions as applicable normal
Infrastructure Bonds.
|
v Widening Scope and potential
v Government Bonds – Capital Risk Free
v Managed by RBI with assured services to the investors.
v Capable of mobilizing thousands of crores.
Ø Transferability by Endorsement and Delivery has the benefit of negotiability and
liquidity most sought for by the investors
|
|
(b) NFRASTRUCTURE DEVELOPMENT GOLD BONDS (IDGB)
|
·
Domestic Individuals
|
Ø Five years tenor with lock in period of three years.
Ø Gold deposit will be redeemed at the end of the Fifth
Year with option for renewal by the for
additional five years on the same terms and conditions.
Ø Gold deposited value to be determined according to a mechanism in
consultation with RBI. For example, the value can be determined t on the
basis of the gold price prevailing on the date of deposit.
Ø Purity and parity of
Gold must be established to the complete satisfaction of the RBI
according its own mechanism.
Ø Interest @ 5% per annum payable half yearly by Interest
Warrant Instruments.
Ø Income Tax exemption up to seventy five percent of the interest earned.
Ø Both Bond and Interest Warrants Transferable by Endorsement and Delivery.
Ø Exempt from Stamp Duty
Ø Other Terms and Conditions as applicable normal
Infrastructure Bonds.
|
v There is large scale domestic Gold Reserve with the
Families in the country which is idling and awaiting opportunities for some
earnings thereon.
v Checks exploitation presently being made by the Private
Agencies in the country.
v High Scope and potential
v Government Bonds – Gold Deposit - Risk Free
v Managed by RBI with assured services to the depositors.
v RBI can use this as Gold Reserve for printing of
additional currency equivalent of the total assessed value of
the Gold deposited and utilize the same in the form of Gold Bond Reserve in
the name of the GOI for using for infrastructure development.
v Capable of mobilizing substantial resource.
Ø Transferability by Endorsement and Delivery has the benefit of negotiability and
liquidity most sought for by the investors
|
|
(c) INFRASTRUCTURE DEVELOPMENT SPECIAL BONDS (IDSB)
|
·
Unaccounted Money
Holders within the country.
|
Ø Subscriber to write his name, address and telephone number
on the Application.
Ø One time Immunity from the legal proceedings under the
Income Tax and other applicable Laws/Rules.
Ø Ten years tenor .
Ø Redemption at the end of
Tenth year with option for renewal l
for additional five years on the same Terms and Conditions.
Ø Interest @ 3% per annum payable half yearly by Interest
Warrant Instruments.
Ø Interest earned will be subject Income Tax (Taxable Bond)
without any exemption.
Ø Both Bond and Interest Warrants Transferable by Endorsement and Delivery
which has the benefit of negotiability and liquidity to the investors.
Ø Exempt from Stamp Duty
Ø Other Terms and Conditions as applicable normal
Infrastructure Bonds.
|
v Efforts to unearth the unaccounted money in the past had
limited success .
v Finding unaccounted money through administrative and
legal process has not made much progress so far.
v Such process is involving huge costs and time for the
Government
v One time immunity will induce the holders of unaccounted
money.
v Checks growth of unaccounted money and avoidance of tax.
v Government Bonds –
Risk Free
v Managed by RBI with assured services to investors.
v Capable of mobilizing substantial resource.
Ø Transferability by Endorsement and Delivery has the benefit of negotiability and
liquidity most sought for by the investors
Ø Help control parallel economy and inflationary movements.
|
|
(d) Levy Infrastructure Development Charges Industries which
are setting up their industries on the developed land.
|
·
Large and medium
size Industries which are setting up their industries on the developed land..
.
|
Ø The Levy of Charges
should be on graded basis for medium and large industries.
|
v Developed infrastructure attracts and induces the medium
size and large size Corporate for setting up their industries according
availability of inputs in the area.
v Capable of collecting adequate funds.
|
Ø
Funds
earmarked for Infrastructure Development within the existing framework or the
funds mobilized through the above suggested modes should be placed in a
dedicated National Infrastructure Development Fund (NIDF) to be administered by
the Ministry of Finance (MOF). This will infuse confidence and reassures
undertaking hassle free development of infrastructure and enables timely
completion of the projects.
Ø
Putting
infrastructure in place whereby economic activity will start moving with
cottage industries, small industries, medium and major industries flocking in
along with ancillary industries,
agriculture production increasing much faster supported by IT industry, service
sector, trade and commerce facilitating higher and higher economic growth,
increased capital inflow and revenue
growth..
(x)
Government
of India needs to mount a high voltage publicity to create awareness among the
people on the revival of the retarded infrastructure growth with great urgency
and speed with slogans such as:
“HELP
INDIA GROW AND GROW YOURSELF TOWARDS PROSPERITY THROUGH INFRASTRUCTURE
DEVELOPMENT.”
“COME, PARTICIPATE
AND CONTRIBUTE IN THE INFRASTRUCTURE BONDS TO BUILD A STRONG NATION ECONMICALLY
AND SOCIALLY.”
(xi)
If
the authorities in position think and consider the above avenues and measures
for resource mobilization for much needed infrastructure development as not
feasible in their given opinion, then, the only course open is “DEMONITIZATION
OF FIVE HUNDRED AND THOUSAND RUPEE NOTES” through appropriate policy and
procedure to make up resource requirements,
control the inflationary trend and stabilize the monetary system of the
country
(xii)
There
is also need to give ground strength for infrastructure development in the
country. Classification of Infrastructure as defined in the MANUAL OF INFRASTRUCTURE
STATISTICS dated March, 2014 by the Central Statistical Organization (CSO) is
as under:
1.
Transport
Infrastructure – Road, Rail, Inland Sea & Coastal, Air.
2.
Energy
Infrastructure – Coal Mining & Quarrying, Petroleum & Natural Gas, Electricity
Infrastructure
3.
Communication
Infrastructure – Telecommunication, Postal communication,
4.
Irrigation
Infrastructure –
5.
Water
Supply and Sanitation Infrastructure
6.
Storage
Infrastructure.
Education also needs to be classified and included as an
Infrastructure Activity (Education
Sector).
(xiii)
Government
of India should establish “REGIONAL INSRASTRUCTURE DEVELOPMENT INSTITUTES
(RIDI) to build a strong and specialized Work Force throughout the country essentially
needed for faster infrastructure development as the existing manpower lacks
skill and specialization to manage speedy infrastructure development. RIDI should provide Graduate, Diploma and
Supervisory Level Courses covering all the above classified Infrastructure Sectors
including their sub-sectors.
(xiv)
A
National Level Expert Committee may be set up to work out the modalities and
funding for the establishment of RIDIs. Funding these Institutes may be through
Multilateral and Bilateral Agencies grants, aids and soft loans as applicable
for infrastructure development sectors.
(xv)
Government
should also establish a NATIONAL INFRASTRUCTURE DEVELOPMENT CORPORATION (NIDC)
WITH SUBSIDIARIES IN EACH STATE with full responsibility for coordination and
integration and control and supervision of the infrastructure development in
the country under the direct administrative control of the PMO considering the
various Sectors and sub-sectors involved in the infrastructure development.
(xvi)
It
is not to suggest overlooking the
administrative control of the Ministries concerned. The object of establishing
NIDC would ensure ONE POINT review of progress of various Sectors/sub-sectors,
analysis of shortfalls, render guidance and advice and to take timely remedial
measures covering all the Sectors/sub-sectors.
9.0
VILLAGES TRAINING –CUM- SELF EMPLOYMENT
CENTRES (VTSECs)
Every
village or a group of villages have one or other kinds inputs and raw
materials, traditional designing, artistic skills, dance and music services,
cottage and handloom activities, natural resources etc. offering potential
scope for development. Essence for the growth of the villages and the wellbeing
of their inhabitants lies in creation of economic activity from the available
opportunities in a group of villages. The road map could be as follows:
a.
VTSECs
to be registered with the State Social Welfare
Department....
b.
Identification
and materialization of available inputs, raw materials, opportunities and scope
for development of a cluster or group of villages which may be called as “Villages
Training-cum- Self Employment Centers (VTSECs) may be conducted .through
commissioning IITs, IIMs, reputed rural
development Research Institutes in the country to undertake a detailed study in
order to establish the feasibility of the activities identified including modeling and patterning structure
of such centers which should be, by and large, in similarity to absorb
different nature of activities as per available opportunities and scope in
different group of villages so that a standardized cost for establishing such
centers could be maintained with minimal expenditure and economic benefits.
c.
Such
centers will ensure participation of the villagers around into an economic
activity that enables their self growth, improving their living standard and
achieving the end objective of inclusive economic growth.
d.
NABARD
should lend a strong support, guidance and assistance to the proposed centers
including Initial Capital Expenditure for center’s establishment, machinery,
tools and tackles by way of grant to
centers. Soft loans may provided by NABARD for Working Capital till such time
the center starts self earning and self management.
e.
Block
level, District and State Level
authorities should render necessary assistance in establishing VTSECs market
centers at the Block level and District Level
so that such centers are assured of outlets for sale of their products
and material thus linking the centers to the national mainstream.
f.
The
Central and State Social Welfare and Education Departments should
formulate a road map of the State based on the above mentioned surveys and
studies reports to identify the core strength of the Group of Villages and the
core skills required to provide them training and self employment with
continued watch and ward for the efficient management of the centers and to
safeguard against any misuse and mismanagement.
10.0 URBAN TRAINING-CUM-SELF EMPLOYMENT CENTRES (UTSECs)
There is also a need to organize Urban
Training –cum- Self Employment Centers (UTSECs) in major and metro cities, to begin
with. Their modalities and operational mechanisms can broadly be as follows:
a.
Conduct
surveys and studies through specialized
and reputed bodies and agencies to identify concentrated areas of unemployed
and beggars who, due to lack of their earning capacity, have become victims of
anti-social activities, committing of crimes including crimes against woman,
snatching of gold and ornaments, kidnapping businessmen and rich people for ransom
at gun point and even killing them, stealing cars and vehicles, theft and
robbery in the residential areas including the houses occupied by lone elderly
persons etc. Such surveys and studies
need to be conducted to ascertain the above activities occurring in day and
night. News items appearing in the daily news papers about the crimes against
women are highly disturbing and painful to read.
b.
Based
on such survey and studies, set up an expert committee of sociologists,
economists, criminologists and psychologists to pinpoint the exact causes that
are arousing the above categories of people for resorting to above kinds of
activities and classify them into those who are prone to high and low levels of anti-social and
criminal activities in order find out the best methods and means to
rehabilitate them and make them socially respectable and responsible.
c.
Today’s
lifestyles being depicted in the serials and films as well as in the society
are the main attributes for driving lower class people to the activities of the
nature mentioned above, just because, this class also wants to live in its own
lifestyles comparable to other
lifestyles appearing before them. Given the self earning and dignified living
opportunities, such class of people would become responsive to the respectable
social growth. The prevailing laws and procedures and abusive attitudes of certain section of the
society are also responsible in dragging them into anti-social activities. Once
this is stopped, they would also stop doing what they are doing today. How to
do this?
d.
In
identified concentrated areas based on the survey and studies stated above and
the recommendations of the experts, establish Urban Training-cum- Self Employment
Centers (UTSECs) in such concentrated areas suiting to the identified
availability economic skills and trades of such class on the assumption that each person/class of persons are born
with certain kinds of skills and trades, capacities and capabilities which can
be encouraged, exploited and
economically harnessed for their self
earning with respect and dignity..
e.
Beggars
in the major cities are visible at market centers, red light stoppages, temples
etc reflecting upon the country as the blur of its development.. They also have
zeal and skills as well as salesmanship as very much visible at the red lights
stoppages and market places where they flock with several kinds artistic items,
paintings, sculptures etc. hidden within them but uncared whereby they lead a
life of beggars. This class of people which include children, adults and elderly
both men and women should also be given due opportunity for developing skills
and trades through above types of Centers
in their concentrated areas based on the suggested survey and studies.
f.
The
passersby howsoever big or small in their cars see such scenes presented by the
beggars at the red light stops,, temples and market places and scold them and
look at them with contempt. Swami Vivekananda has said that “GIVERS SHOULD NEVER
JUDGE THE RECEIVERS BUT ONLY GIVE”. This
is not to suggest promoting begging. Give is not limited to giving alms to the
beggars but it goes beyond that. That is, do we have to call them beggars and
make them remain beggar forever. Then why should we talk of so called welfare
and wellbeing of the people”
g.
It
is here that every well-to-do citizen’s and State special attention is solicited.
Past sixty six years (almost sixty seven
years) of our Independence, we have been watching consciously and silently the
kinds of crimes and anti-social activities and the beggars standing with a bowl
in their hands and are we to continue to do the same without seeing an end.. If
this continues to happen, people and the State have no right to make louder
voice and hue and cry for the increasing anti-social activities, crimes and
begging. THOSE TO WHOM GOD HAS GIVEN OPPORTUNITIES TO HAVE ALSO SHOULD GIVE TO
OTHERS WHO DON’T HAVE THOSE OPPORTUNITIES AS THE CHILDREN OF THE SAME
GOD.SUPPLEMENTING STATE INITIATIVES TO MAKE THE SOCIETY LIVE WITH PEACE OF
MIND..
h.
Mere
arresting, punishing and putting such people in jail do not lend to any
solution but, on the other hand it makes them more hardening and criminally
solidifying. Also, charming them by freely distributing in kind or cash
including food and cereals acts as a momentary pleasure for them but not as a
permanent solution for lifelong sustenance economically and socially.
i.
In
both above cases, the Central and State Social Welfare Department and Education
Department should take lead to establish
such centers in the identified areas in the cities to make them economically
capable of creating products and services according to their own skills and
trades which offers them potential scope for self earning and for living with
dignity. Through their specialization and expertise they gain by training and
employment in the centers, which will be the stepping stone for them, they will
look forward for further betterment of their earning capacity for decent living
by working outside the centers making space for others awaiting outside.
j.
The
Urban Development Cooperative Societies
and the Social Welfare Funds should take lead in funding such Centers
both in terms of capital expenditure for the establishment of the UTSECs and for
working capital requirements till such time the Centers are become capable of
making up the working capital. rather than using these funds for free
distribution in kinds and cash which serve them till they exhaust. Suitable
mechanism for marketing of the products and services also needs to be chalked out and implemented..
k.
Such
benevolent and beneficent approach on the part of the Central and State Governments would facilitate diversion
of their minds to positive attitudes and behavior and will act to a great
extent in preventing them from further harming themselves and the society at
large.
l.
IDLISM
gives birth to DEVLISH activities while
IDEAS give birth to SOCIO-ECONOMIC OPPORTUNITIES AND ACTIVITIES OF SELF EARNING
AND CREATION OF WEALTH FOR THE NATION..
11.0 FOOD PRODUCTION AND WASTAGE
(i)
India
is a dominant agricultural country and food production has been increasing year
by year as per official statements. Barring few rural rich people holding large
scale agricultural control, ordinary agriculturist continues to reel under the
yoke of poverty, bankruptcy and suicides.
(ii)
It
is not known whether the Central or State Governments have gone into the root
cause of such sad situations which is imperative to cure the ills of the poverty
in the villages. Various Committees had been set up in the past and continue to
be set up on ways and means for increasing further the agricultural production
but there does not seem any report that would have gone into causes of the villages
tragedies.
(iii)
Time has come to soothe the snarling faces of
the people by acting sternly and firmly against artificial shortages and
scarcity being created through hoarding taking advantage of changing
technologies for their misuse rather than for betterment of the people.
(iv)
Import
of commodities or vegetables or fruits is understandably unavoidable when there
is fall in production due to natural calamities including drought but not where
the production of such items has been increasing and not available for
distribution at a reasonable price.
(v)
This
shows the obvious inability of the authorities concerned to deal mercilessly with
the people who are responsible for the creation of such situations.
(vi)
Import
of food items or vegetables such as onions having sufficient production within
the country amounts to bowing down to the dictating attitudes of the
unscrupulous people in the market not concerned with their responsibility and
obligations to the society and in disregard of governing laws and rules.
(vii)
Overall,
the problem the country is facing is not shortage of food, vegetables and
fruits but utter failure of their control and management in procurement and
distribution. Following suggestions are for kind consideration:
a.
Undertake
an extensive and intensive investigation into the existing mechanism of
handling, procurement and distribution as well as wastage. Such an
investigation should go into deepest possible root cause to find the exact
malady in the whole process which, when completed, will be an eye opener.
b.
Taking
the findings of the investigation into consideration, revamp and recast the
existing mechanism including, if necessary, shaking up the very foundation of
the system that is facilitating shortage and wastage. Silos and storage places
seem to have little regard for better management resulting regularly into
substantial wastage which is evident from the fact at one time, the Supreme
Court had to tell the Government to distribute wheat and rice free to the poor
people rather than wasting.
c.
Modernization
and mechanization of the entire system of warehousing and storage is the need
of the hour to feed the starving mouths
of the poor people. Time has not come as yet to compare the quality and
standard of products produced by us with those produced in the developed
countries because we are ingrained with low quality of our mind, character and
culture. Till these upgrade to a global level, the quality and standards of our
products continue to remain to be much desired. It must be appreciated that it
is the quality of mind and character
that make best products.
d.
LET
US NOT WASTE FOOD PRODUCED WITH SWEAT, PERSEVERENCE AND DEBT SHOULD BE THE CALL
THAT SHOULD REACH EVERY CORNER OF THE COUNTRY.
12.0
REFORMS, REGULATORY REGIMES, COSTS AND
EFFICIENCY
(i)
The
Preamble and provisions of Reforms Acts lay great emphasize that besides
compensating the service provider to the level of current costs of service,
ensuring efficiency in operation, administration and management.
(ii)
Take
any Sector where reforms have been introduced and regulatory mechanisms have
been established, only the costs overweigh the efficiency in determination of
tariff or cost of service plus return margin.
(iii)
Tariff
orders deal extensively the expenditure
claimed by the service providers with truing up process but such expenditure is
not screened through the eyes of efficiency mainly giving considerations to increase in costs every year linked to so
called inflationary conditions and of perquisites and benefits to employees and
managerial positions. Control of leakages, thefts and pilferages are part of
the administrative and legal measures but are being treated as commercial
losses merging with technical losses differently in different Sectors.
(iv)
Take
for example the Power Sector. Till 1996 or so, the energy losses designated were
only Technical Energy Losses occurring mainly on account of deterioration of
the distribution system over the years. The bench mark fixed by the competent
authority was ranging between 18% to 21%.
(v)
With
the reforms setting in and private sector participation showing interests in
the power sector, the authorities in the governments agreed to the terms set
out by the prospective participators to treat the commercial losses also as
part of the losses to be called them as ‘Aggregate Technical and Commercial
Losses (ATC)’.
(vi)
Around
that time the losses thus assessed were in the range of 45% to 55% on an
average in the country as against 18%-21% as per the bench mark adopted prior
thereto.
(vii)
Efficiency
in collection of revenue from the defaulters, pilferage, theft of electricity
through administrative and legal measures took a back seat in the process, the
service provider having been assured of recovering of such losses through the
tariff itself with total disregard to the ethics of technical losses and
commercial losses. This is despite the fact that the high level committees of
experts set up by the Central Government
in this regard from time to time and the National Electricity Policy (NEP)
having firmly held the view for separation of commercial losses from technical
losses and restoring the losses to the technical losses as actually assessed.
(viii)
Let
us see ATC effect by way of an example – Assuming X generated 100 units and the
cost claimed in respect thereof is Rs.300. Taking the technical loss only even
at the maximum of 21%, the cost of generation works out to : Rs.300/(100-21)=79
units = Rs. 3.80/unit or kWh whereas if the same is
worked out assuming maximum 55% ATC, the cost of generation would work out to
Rs. 300/(100-55) = 45 units = Rs. 6.66/unit or kWh. Excess cost of recovery
according ATC ,method would work out to Rs 2.86/unit or kWh. Adding 15% return
on equity, tariff @ 21% loss factor would work out to Rs. 3.80 + 0.57 = Rs.
4.37/unit or kWh and tariff @ 55% loss factor would work out Rs. 6.66 + 0.99 =
Rs. 7.65/unit or kWh, the difference between the two being Rs.3.28/unit or kWh
representing recoverable amount on account of commercial losses.
(ix)
Barring
few African countries which have followed the Indian example, in other countries of the World, the energy loss
recognized as only the technical loss varies in the range of 4% to 10% which is
taken into consideration and accounted for determination of User charges.
(x)
Energy
and Revenue are different in their connotations and recognized independent of
each other in assessment and accounting system. The provisions of erstwhile The
Electricity (Supply) Act, 1948 nor of its successor Act, The Electricity Act,
2003 contain any provision to treat energy loss and revenue loss as one for the
purpose of determination of tariff. On the contrary, the Electricity Accounting
System introduced sometime in 1985 and notified by the Central Government as
well as the mandatory information required to be given in the Annual Reports of
the Power Utilities as prescribed by the Central Electricity Authority which
continues to be in vogue does not provide for any such assumption or adoption.
(xi)
The
difference between the input energy and output energy in physical and revenue
terms is considered as the ATC loss which would included the actual energy sold
and revenue realized as well as the energy pilfered through theft or misuse not
accounted for in revenue terms as illegal energy loss but as a legitimatized
loss through the tariff. The revenue
loss resulting from the illegal use of the energy by unscrupulous people and
reluctance on the part of the Utilities to act firmly and sternly through
administrative and legal measures available to them under above law and rules
made there under cannot be equated equal to energy loss in physical terms so as
to permit it to be accounted for reduction from the total energy generated.
Doing so would amount to punishing the honest and regular payers of the User
charges and protecting the dishonest and non-payers of the User charges.
(xii)
Electricity
charges are determined on the above basis and every time there is an ‘EVER INCREASE
BUT NEVER DECREASE OF CHARGES.” Public protests are but natural in such
circumstances of the functioning of the Electricity Tariff System with multiplying
effects on goods, services and other usable items produced by the application
of electricity, the electricity being lifeline of every economic activity. of
the process, making condition of the people more and more miserable. Efficiency
factor is primarily applied to operational norms coupled with ATC losses and
secondary treatment for the efficiency in the overall administration and
management measures which the utility is reluctant even to listen as evident
from the success so far of the initiation of the CAG Audit of the books of
accounts of the utilities. This is the case of one Sector.
(xiii)
It
must be noted that the arrangement adopted and being followed accepting ATC as
a legitimate measure for reduction in the total net energy generated to divide
the expenditure to arrive at the cost of generation lacks sanction of relevant
law and thus, this cannot be legitimatized by executive or regulatory process.
(xiv)
Similar
is the situation in airport charges, airfares, telecommunication, railways
etc. All these are essential services
for one’s living but their charges jumping sky high under various guises
rendering their use beyond the capacity of an ordinary citizen. Airfares are
time based and auction based which at times, touches for a travel to a
particular sector in peak time to Rs. 20,000-25,000, an unimaginable figure in
the ordinary sense. Whereas electronic items, refrigerators, televisions, cars
are available with downward rates which have, more or less become essential for
lifestyles whereas the essential services as specified by the authorities and
understood are becoming luxuries for the ordinary living person.
(xv)
Reforms
were introduced from time to time beginning in 1991 with the ardent hope that
private sector participation would encourage competition in the market and the
people would be able to have numerous choices for purchase of goods etc. at an affordable price. That was only a myth as
the reality is otherwise and agonizing.
(xvi)
Cost
and Efficiency are the twins in operational, administration and management
systems which means an equilibrium has to be maintained between the two in producing
goods or rendering services. Goods
produced and sold or services rendered mainly on expenditure basis places undue burden upon the consumers
which leads unrest and protests. Efficiency also needs to accorded equal
importance as assigned to the expenditure.
(xvii)
For
above stated reasons, time has now come to make it mandatory the efficiency
measurement in terms of certain percentage which must be prescribed and complied with by the Utilities in all the
Sectors including, in particular in the Power Sector and the expenditure
claimed for increasing the User charges should be the “TOTAL AGGREGATED
EXPENDITURE MINUS SAVINGS EQUIVALENT TO PERCENTAGE EFFICIENCY AMOUNT OF THE
TOTAL EXPENDITURE” so that there is an equally imposed obligation to effect
savings through efficiency based on the prescribed percentage just as it is
imposed obligation on the part of the consumers to pay User charges to meet the
expenditure. Efficiency percentage factor should be not less than 25% of the
total aggregated annual revenue requirement for any given year equivalent of which must be
generated by the utilities through means of internal efficiency measures
similar to energy conservation expected from the consumers. The admissible
expenditure to be considered for the purpose of determination of the User
Charges, subject to further scrutiny and truing up should be limited to 75% of
the annual aggregate revenue requirement, the balance 25% should be garnered
internal efficiency and control measures.
13.0
RESTRUCTURING AND REJUNEVATION OF
POWER SECTOR
(i) Before the reforms initiatives were put
in the process, the electricity generation, transmission and distribution was
managed and controlled by one entity by name State Electricity Boards (SEBs)
established under the then The Electricity (Supply) Act, 1948 and the
Electricity Rules, 1956. Their achievements during the period they existed and
operated were noteworthy in that they laid a very firm and strong foundation of
electricity infrastructure through the plan funds mechanism and that foundation
of system they laid is still holding the ground from various kinds of shocks
the country started facing and continues to face even after two decades of
induction of the reforms.
(ii) SEBs laid a solid growth trajectory in
the power sector from the time they were established under the active
association and assistance of the Central Government/Statement Government and
the Central Electricity Authority (CEA) also established under the above Act.
There was one central control point to regulate the generation, transmission
and distribution of electricity which is the essence for managing smooth
functioning of the electricity sector. They produced high specialists and
experts for development of the sector.
The army of core engineering manpower, finance manpower, commercial manpower,
human resource management had an impeccable record for more than forty years.
It was this manpower that stood the test of times and smilingly accepted the
challenges faced by the country in those days,.
(iii) SEBs maintained a good financial
health earning a return of minimum 3% or more as prescribed under the said Act
until late eighties. The targets and achievements were matching in the ratio of
100:90/80. All this was possible because of two factors – one a spirited
workforce, unified financial management and management control and the second,
independency from political interferences and a strong public faith. Their
worthy performance remains but their names have been erased from the national
scene. What led their systematic collapse and rise of severest criticism? To
the best of knowledge, this question is answered as below:
a.
From
1985 onwards, political interference intensely inflicted organizational,
financial and commercial injuries which turned out to be incurable and
recognized to be so both in public and private platforms.
b.
Politicians
of the time flooded the people into the SEBs at various levels without seeing
their skills, capabilities and deliverability to the needs of the nation, total
disregard of the manpower budget and the SEBs had no option but to faithfully
obey the orders, most of which oral.
c.
Free
supply of ;power was announced as a welfare measure, incentive for increasing
agriculture productivity and for bettering the social life holding assurance to
the SEBs that they would be fully compensated for the loss of revenue on
account of the free supply of power. There was competition among the States to
provide free supply of power which they did and continue to do.
d.
The
compensation held out by the States was mostly in the form of adjustments against
interest and loans outstanding against the SEBs which were unable to discharge
their obligations obviously for reasons of their compliance of the requirements
of free supply of power without cash compensations equivalent to the revenue
which they would have earned had they sold the energy commercially, except in
one or two States.
e.
Free
supply of power was more misused rather than better used by select landlords
and powerful persons depriving the benefit to that class of people to whom it
was intended. There were instances that these big people used high power pump
sets for irrigation availing the free supply of power and sold the water at
cost to the poorer agriculturists and less fortune people.
f.
Economics
tells us that a product or service like power
is produced at a unit cost by having
incurred prior expenditure and it is necessary for the producer to earn that
cost plus minimum margin. If such service is made a free supply without being
compensated by the authorities at whose instance such free supply was
undertaken, even the bluest financial health of a utility is bound to become
red.
g.
To
this added the agony of pilferage and theft of electricity at distribution
level openly and brazenly in the rural and urban areas and initiatives and
action moved by the utilities met with strong resistance from one corner or the
other, threats and taking law into their hands by such people. This reached an
irreversible level and posed a big threat to the very survival of the
utilities. The revenue or commercial loss thus being incurred by the utilities
started shooting up sharply and invited intense criticism day in and day out
holding the SEBs solely responsible for this state of affairs. This is
something like tying both hands of a person and asking him work hard and
efficiently to produce best possible results.
h.
This
was how the SEBs made and became RED in their financial health and earning
capacity. The need for reforms of the sector gave birth from here.
(iv) For the past a decade or so, the power
supply situation has been worsening day by day with the shut down periods
ranging from two hours to eight to ten hours being the order of the day.
Economic development took a biggest hit because of slow or no industrial,
commercial, services and agriculture sectors growth due to heavy load shedding
in place of an assured and regular supply being the lifeline for the economic development even after reforms
measures having been put in place. The situation is no different even today.
The economic growth is adversely affecting and people are becoming restless
with even electricity riots occurring at several places creating law and order problems
(v) The small, medium and major
industries, the services sector and the commercial activities are unable to run
to their full capacity and continue to
bear the increasing interest and capital costs. There are no signs of
improvements in the foreseeable future because the performance having taken a
secondary place over the speeches, promises and assurances. Hence, the need for
an urgent call for review, reconsideration and restoration of the system back
on the tract only when the nation can look up economically and socially.
(vi) Reform of the power sector gone awry
and directionless and loud sounds are emanating from policy corners and big industrialists
for re-reforming the Sector. Even after two decades, if we continue to work on
experiments without any positive outcome, it is better not to make by the
authorities in positions high growth expectations with no tangible results and later start floating blame games which are
highly harmful for the national growth.The impact so far of reforms:
a.
Enormous
time, efforts and costs in evolving and finalization of the reforms planning
and implementation under the financial assistance extended by the multilateral
and bilateral financial agencies. Entire Electricity Sector structure built and
then standing had to be dismantled, the
dismantling expenditure overweighing the benefits with additional liability on
the utilities for discharge of debt and interest obligations after the agreed
moratorium.
b.
The
underlying essence of the reforms was to move towards gradual privatization of
all the three segments with fervent hopes that the private sector would be
eager to participate in the process. The private sector did participate in
generation, transmission and distributions segments with the sole voice that
the User charges are much less than the costs of service and should be increased
annually through the regulatory process
in disregard of the public interest and capacity to pay. The private utilities
have been achieving their ambitions annually with new innovations like
Aggregate Technical Losses (ATC) adjustable to the tariff without any
noticeable improvements and efficiency in operations and services.
c.
As
noted in a preceding paragraph, the private sector is more concerned with
commercial earnings than technical and operational efficiency to cushion the
costs of services and balance the tariff. It is too much to expect the private
sector in infrastructure development as a developmental-cum-commercial activity
and not as a pure commercial oriented activity.
d.
Almost
all the private sector utilities whether in generation, transmission and
distribution drew their manpower strength including executives and chief
executives from the public sector utilities including the SEBs and public
sector undertakings through head hunting and offering more attractive pay and
perquisites who continue to run the private sector utilities. It so happened in
SEBs as SEBs were being looked at as sinking ship with no scope for sailing
back to the shore.
e.
Establishment
of Generation (GENCO), Transmission (TRANSCO) and Distribution (DISCOMs)
corporate entities and the Distribution companies being further divided based on
region/zone basis continue to add more costs to the service to the Users
because of increasing overheads, want of efficient management, growing weak
financial management with no result
oriented control of technical and commercial losses.
f.
Each
establishment is required to submit its tariff petition to the regulator individually
for determination of tariff involving substantial expenditure, time and efforts
including public hearings, regulatory proceedings and regulatory orders.
g.
The
reform measures were considered to create more efficiency, cost reduction,
reasonable User charges and assured supply. It has not been happening from the
time reforms were set in and, on the other hand, the User charges have shot up manifold
unaffordable by an ordinary citizen. This has also multiplying effects on other
essential goods and services for the society in general and ordinary person in
particular.
h.
Intent
of establishment of regulatory region was well thought with the hope that the
exercise of regulatory control and supervision would lead to efficient working
of the utilities, better services and lower User charges. This also has not
been happening for reason of the sole consideration in determination of tariff
being costs shown by the utilities rather than a combination of costs and
efficiency formula not limited to only operational norms but to all the related
aspects of the functioning of the utilities.
i.
On
the whole, the reform process affected faster economic growth because of the
crisis in industrial production, commercial production and providing of
services for want of quality and regular supply of electricity.. Ordinary
consumer is suffering the worst because of rising prices for want of adequate
production and services, higher and higher User charges of all the services
including electricity, gas, water etc., rising medical treatment and hospital
charges and in every other sphere of economic activity which the ordinary
citizen is availing.
(vii) Electricity as is well established is
an inter-dependent system rather than an independent system and works through an integrated operational
system in terms of Generation, Transmission and Distribution. Two decades back
reforms of the Power Sector were undertaken and implemented by almost all the
States by now. Each State took on an average minimum about 4-5 years to reset
their organizations and establishments on the envisaged reform planks The
reforms aimed at injecting efficiency through decentralization process, control
expenditure and rural and urban distribution energy losses to bring them to an
acceptable norm or level.
(viii) A realistic and honest assessment of the
reform results of the public and private sector power utilities performance
could reveal an alarming situations and developments that have taken place and
are yet to come that will help the policy makers to understand the ground
realities and the enormous additional costs necessary to bail out the sector.
(ix) Measures suggested for restructuring
and rejuvenate :
a.
State
should take over the generation, transmission and distribution according
freedom and independency of the utilities.
b.
Establish
State Holding Companies in each State with 51% Government Holding, 26%
financial institutions, insurance companies, banks and the balance 23% being
offered to the public over a period of time.
c.
51%
of the holding by the by the State in the Holding Company should come from the
Central Plan Assistance and the Holding Companies should invest 51% in its subsidiaries discussed below from out of
the available funds according to the norms approved by its Board of Directors.
d.
The
Board of Directors of the Holding Company will comprise one State Government representative three directors consisting of one expert each
in Environmental Management, Energy Conservation Management, IIMs/IITs one of whom should be a woman
director appointed by the Board of Directors, a representative of each
subsidiary company nominated by its Board of Directors five functional directors including CEO,
Director (Generation), Director (Transmission & Distribution), Director (Resource
& Financial Management), Director (Human Resource Management) and Director
(Commercial & Cost Control) with
lean organizational framework and advanced operational and communication
systems.
e.
Holding
company should hold controlling interest/management control of not less than
51% in Generation Company, Transmission Company and the Distribution Companies,
each of which to be the subsidiaries of the Holding Company. Of the balance
49%, 26% to be held by the State Bodies, Corporations and
Institutions and remaining 23% being offered to the public over a period of
time.
f.
Generation
Company should have a Joint CEO, Director (Hydro), Director (Thermal), Director
(Renewable Energy Sources), Director (Finance), Director (Commercial & Cost Control), Director (Human
Resources), a representative of the Holding Company, two independent directors appointed by the Board Directors of which one
will be Environment Management Expert and the other will be Fuel Management
Expert with lean organizational set up with advanced technology, operational
and communication system.
g.
The
Transmission Company should have a Joint CEO, Director (Transmission), Director
(Finance), Director (Human Resource) and Director (Commercial & Cost
Control) , a representative of Holding Company, and two independent directors,
one Transmission Technology and one Transmission Management.
h.
Each
Distribution Company should have a Joint CEO, Director (Distribution), Director
(Finance), Director (Human Resource), Director
(Commercial
and Cost Control), Director (Load Development
& Consumer Care) and two independent directors, one Distribution IT expert
and the other Distribution Technology expert.
i.
The
above pattern of holding controlling interest/management control will infuse
confidence and better management, accountability and result oriented
performance. The presence of the public investment in companies will facilitate
transparent working, good environment and working culture.
j.
This
will enable establishing a unified and centrally controlled management to
effectively monitor the performance, efficiency, minimizing expenditure,
introduction of uniform policy
guidelines and measures,
k.
This
will integrate all the three systems under one umbrella management and ensure
better coordination, control and supply of electricity services for speedier
economic growth of the country.
14.0
FISCAL DEFICIT RATE, GROWTH RATE,
INFLATION RATE AND INTEREST RATE, POVERTY LINE DILEMMA
(i)
These
are talked about at various forums. Growing speculation in various forums on
conjectural consideration is scaring the public in general and surmising the
policy makers in Government and the Central Bank. Just on the eve of every
Monetary Policy Press Conference of the Central Bank numerous speculative talks
about the inflation rate and the interest rates appear in print and electronic
media, without little patience to wait for the announcement.
(ii)
One
after the other Experts Committees have been coming out with a new definition
or formula on National Poverty Line and Growth Rate which by implication
suggests that our country to remain only labeled with poverty line and growth rate rather making
concrete measures to eliminate altogether the words “Poverty Line” and minimize
if not silence the speculative talk on Growth Rate. Speculation is like a
human skeleton creating psychological effects on the people on fiscal deficit
rate, growth rate, inflation rate and interest rate.
(iii)
Having
attained Sixty Six Years of our independence, to continue to be concerned with fiscal deficit, growth,
inflation, interest and poverty talks
more about negative rather than positive
mind.
(iv)
A
layman’s approach:
a.
Give
highest impetus to the infrastructure growth, particularly, power sector growth
which offers vast employment opportunities to the people not only within that
sector but in all the adjunct and adjoining agricultural, industrial – small,
medium, major, commercial and services activities which help enlarge productivity
to push up the growth and create national wealth.
b.
Size
up subsidization to the barest minimum based on the realistic assessment of
most deserving catalyst categories and class of people.
c.
Evolve
and lay down policies and simplified procedures aiming at attracting large
scale investments in agriculture, industry, real estate, services sectors
including foreign investment with technological collaboration.
d.
Seek
peoples’ participation and contribution through large scale savings with fair
return through interest and tax concessions by way of small saving schemes,
public provident funds, by floating new financial instruments for securing
funds in open market and from unaccounted money sources for the national
development.
e.
Ban
all kinds of political donations from any source and constitute a National
Election Fund into which all kinds of political donations should be deposited
and administered for election purposes with objectives of sanitization of
election system, disciplining the political parties and creating good
democratic values and virtues and strong
peoples’ faith in the governance.
f.
Introduce
two percent National Development Cess (NDC) on Corporate sector earning net
profit of rupees five crores and above, citizens whose annual income is rupees
one crore and above and the agriculturists whose annual income is rupees fifty
lakhs and above. In all these case, the cess at the above percent should be on
net profit/annual income actually earned and not on floor rate basis. This
could be applicable at least for ten years, to begin with, from the date
specified in the Notification/Orders.
15.0
NATIONAL HEALTH AND HOSPITALS
a.
Healthiness
of the PEOPLE of a Nation is known not by establishing hospitals year after
year but by providing a living and hygienic environment to PEOPLE utilizing the
same financial and manpower resources for continuous development of
infrastructure and congenial living facilities, research and investigation of
areas prone to open up diseases, to find
genesis of the diseases and report to the authorities concerned need for
initiating and implementing immediate preventive measures to check the growth
of the disease at its root level.
b.
This
will help protect the PEOPLE from the risks of diseases and minimizing the
public expenditure on establishment and
maintenance of huge hospitals making the lives of the PEOPLE more and more
miserable due to lack better governance in the public hospitals and
exploitation in the private hospitals. This will also help prevent commercial
exploitation of the PEOPLE by the mushrooming private medical establishments in
the country.
c.
Good
sign of PEOPLES health is when the hospitals start waiting for the PEOPLE to
come rather than the PEOPLE waiting in
queues in hospitals spending huge amounts not being sure of the complete
treatment and recovery from the disease.
d.
Spend
as much investment as necessary for preventive measures through creating
healthy and hygienic living environment for the PEOPLE with greater and greater
emphasis on finding and fixing the
genesis of the diseases through research and development using latest
available technological tools and facilities. This is the most effective way of
controlling the growth of diseases.
e.
Make
the authorities initiating and implementing health improvement measures solely
responsible and accountable and stringent action for any negligence or failure
to discharge their duties and obligations.
f.
Take
these measures and make the PEOPLE HEALTHY AND HAPPY.
16.0
NATIONAL JUDICIAL SYSTEM
a.
Good
and efficient judicial system of a nation is one that first subjects each and
every case to rigorous legal scrutiny based on the guidelines laid down or
specified by the Higher Courts of the country at the admissibility stage itself
to find genuineness or otherwise of the case based on the material on record
and, if admitted, whether the case is capable to stand up to further legal procedures as per applicable
laws and rules that justify imposition of punishment or penalty sought in the
charge sheet and, if the Court is
satisfied existence of such material on record, to speed up delivery of
justice.
b.
This
system has inbuilt check and control to restrict the cases on merits and
minimize number of pending cases at all levels.
c.
The
need and desirability of establishing a high level Judicial Committee or
Committees for review of the pending cases on merits, genuineness and
suitability to proceed for trial and punishment according to the applicable
laws and rules and to make recommendations to the Chief Justice of the High
Court.
d.
The
recommendations of the Committee or Committees may be considered by a Bench
headed by the Chief Justice with such number of Judges as the Chief Justice
considers necessary and deal the recommendations through public hearings and,
based on that, pass such orders or give such directions as the High Court deems
fit and appropriate so that speedy justice can be delivered and the pendency of
the cases can be minimized.
17.0
NATIONAL EDUCATIONAL SYSTEM
a.
Education
must be such that imbibes values, virtues and culture of the country.
b.
Education
must create a sense of oneness, national discipline and national pride.
c.
Education
must impart mutual understanding, mutual appreciation, mutual respectability,
tolerance and humanness.
d.
Education
should not be a mere learning process rather the process should also lay
greater importance and emphasis on building up the child completely in all its
essence that makes the child to grow with self confidence, self respect, self
searching and self building up in itself values, virtues and culture and total
discipline.
e.
Multiplicity
of procedures and text books adopted and being followed by different schools in
the same State need to be reviewed and removed and uniformity needs to be
introduced so that the children learn
and speak of one educational system instead of differing educational systems
which will only perplex the children and their parents.
f.
Education
must be true cost based and not commercial based. Lack of this approach is
leading to exploitation of the aspirations of the children and their parents
making it in many cases beyond one’s reach and unaffordable.
g.
The
admission process and securing admission for a child in the school has become a
nightmare for the parents.
h.
Every
child is born to learn and live with dignity of life. Every parent of a child
bounden by their duties want the child to learn and live with dignity of life.
i.
This
is birth right of every child and moral right of every parent to make the
child educationally grow.
j.
In
all future residential development schemes, the State should make it mandatory
for every Resident Welfare Association (RWA) registered under the Societies
Registration Act, 1860/ Cooperative Housing Societies Act for establishment of a senior secondary school on
the land to be made available by the State within the vicinity of the
Residential Colony free of cost or at a nominal amount as part of the welfare
measure.
k.
Entire
cost of the development of the school including construction cost and modern
infrastructural facilities cost should be initially borne by the State.
l.
The
State should handover the management and running of the school to the Society
as soon as it is established through appropriate agreement on lease basis.
m.
The
Rules for the management and running of the school should be formulated by the State.
n.
The
Society should, in consultation with Educational Authorities, lay down
admission criteria and procedure including the fee structure which should be
reasonable and affordable.
o.
A
small component of fee structure should include the development cost of the
school incurred by the State and the amount collected on that account should be
remitted to the designated authority of the State in such account and in such
manner as specified in the said agreement.
p.
The
above component in the fee structure may be classified as school development
cost payable over a period of time as provided in the said agreement.
q.
After
the development cost is fully paid to the State, an amount equal to that
component will continue to be collected as part of the fee structure for future
capital maintenance, renovation and up-gradation of the school.
r.
The
school shall be managed and run by the Society strictly in accordance with the
applicable rules, guidelines, orders as notified by the Educational Authority
to all similar schools.
s.
The
Educational Authority shall have supervisory and controlling powers over the
Management of the Society to ensure proper management and running of the
school.
t.
Schools
should be exempt from all Taxes including Property Tax if the benefit accruing
to the school there from is passed on to the students through fee structure.
18.0
NATIONAL PROTECTION AND SAFETY FOR
WOMEN
a.
Self
restraint in public and social life by women and men is the first call of the
hour.
b.
Establish
Local Women Welfare and Safety Council by
the State by Official Order. The Order should provide for:
Ø
Chairperson Municipal Councilor
Ø
Vice
Chairperson DCP of the Area
Ø
Area
ACP
Ø
President/General
Secretary of RWAs,
Ø
Principal/Vice
Principal of Local Schools/Colleges
Ø
President/Vice
President of Local Market Association,
Ø
President/Vice
President Area/Zone Bus Operators
Association
Ø
Special
Representative: Women Inspector/Sub-Inspector In charge of Task Force (TF)
Ø
Meet
once in every month.
Ø
Emergency
Meetings in case of any emergency
Ø
Meet
in the Office of the Municipal Councilor/DCP
Ø
Formulate
suitable preventive and protective measures including for creating awareness
and protection and safety measures for women in the area..
Ø
Organizing
periodically programs on prevention of crimes against women and providing
protection to them for the benefit of the residents of the area.
Ø
Identification
of Areas prone for crimes against women.
Ø
Surprise
Visits to specially identified areas to get first hand feedback.
Ø
Periodical
meeting Area MLA/MP and State/National Level Women Welfare Organizations on
issues coming in their functional jurisdictions.
Ø
Introduction
in consultation with the Education Department and the Local Schools
Authorities prevention of crimes against women and their protection
as part of the curriculum in Local Schools from Eighth Standard onwards and in
Colleges which will help spread spirit and message as to role and
responsibilities of school and college students.
Ø
Task
Force (TF) comprising:
Women
Inspector/Sub-Inspector
Two
Constables
RWA
Representative by rotation
Local
School/Colleges Representative by rotation
Ø
Implementation
of the decisions of the Council
Ø
Status
of occurrence and recurrence of incidents
Ø
Analysis
of causes and reasons
Ø
Need,
if any, for strengthening the existing measures or introduction of new/additional
measures.
Ø
Patrolling through Special Police Vans with Mobile
Service
Ø
Women
Complaint/Suggestion Boxes in the identified Local Area with clear warning
person(s) misusing the facility will be liable for fine as may be specified.
.
19.0 ONE’S EXPECTATIONS:
JAI
HIND
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