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Thursday, 5 November 2015

REDEFINING MANUFACTURING ?

Central Government is in the process of re-writing Labour Laws

As a part of this process , Govt wants to re-define " Manufacturing "

Eg:

Under the revised Factory Law , manufacturing is sought to be re-defined as :

" Any process or activity resulting in any alteration of original character , such as nature, state, shape, size, usefulness, and/or making value addition to the original material acted upon when subjected to the process or activity "

This new definition seeks to keep " packaging " out of the purview of manufacturing !

This seems strange

Barring few very large " products " ( such as Boilers / Reactors / Pressure Vessels ) , every other product has packaging as its final operation , before leaving a factory gate

Then there are " factories " which do nothing more than " package " a product , such as :

* Bottled mineral Water / Soft drinks / Milk / Oils etc ( liquids of all kinds )

* Re-packing of Bulk Chemicals / Powders in sachets ( solids of all kinds )

* Packing of LPG gas / Oxygen / Industrial Gases in cylinders ( gases of all kinds )

* Filling of capsules / ampoules , with drugs

* Packing of Vegetables in plastic shrink-wraps

I am sure , readers will find many similar items , where " packaging " is the ONLY process

Then here is a glimpse of the " Factories of Future " :

* " Production " of Vegetables in climate-controlled buildings ( existing in Japan )

* 3D printed " Products " in thousands of " homes " ( designs downloaded from internet )

* Warehouses ( Fulfillment Centers ) of Flipcart / SnapDeal / Amazon etc ( only deliveries )

* 3D printed , " Mass-production " of buildings on open plots of lands ( WinSun of China )

* Wind Farms / Solar Power Farms / Geo-thermal power stations

And what about factories which are entirely operated by robots ? No humans at all !

Such factories already exist

And factories where there is no " original material " having some " original character " ?

Can someone come up with an example ?

So , what should we do ?

# Do not anchor " Factory Act " around " Manufacturing Processes " ; however if you

must , then retain " packaging " as legitimate manufacturing process in Factories Bill -

2014

# Re-name this Act as " Human Enterprise Act " , and make it applicable to any

organization employing 100 or more persons , at a single location , irrespective of the ,

* " Original Material " having any " Original Character "

* Any " Alteration / Value Addition " taking place

* Subjecting the material to any process ( physical or mental )

# Do not wait for 64 years to amend the Human Enterprise Act

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hemen parekh

06 Nov 2015

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Wednesday, 4 November 2015

SELF CERTIFICATION FOR BUILDERS ?

In Hindustan Times ( Oct 29 ) , Moushumi Das Gupta writes :

Govt to streamline rules for Construction Projects

Currently , a builder requires as many as 34 kinds of permits from two dozen Ministries, before starting construction

This process takes up to 3 years

Now, Central Govt has initiated a process to streamline the approvals required to ensure that builders get all the construction permits within 60 days

Eg:

* Built up Area............. Environment Ministry

* Height Restriction...... .Civil Aviation Ministry

Cabinet Secretary has directed all the Ministries to come out with notifications by end Dec 2015

The Centre has decided to empower Municipalities to grant all construction related approvals , based on these notifications

One would be able to get all approvals from under one roof , which in this case , would be the Municipal Corporation's office

Although a very laudable initiative , I believe there is tremendous scope to further streamline and digitize this approval process, in the nature of

E-Delivery of Services to Construction Industry

Here is how :

* All builders / developers must register on Municipal Web sites and obtain

unique BUILDER REGISTRATION NUMBER

* Builders must fill in online, on web site of concerned Municipality, a form :

BUILDING PERMIT APPLICATION

* Building Permit Application Form will have a STANDARD FORMAT , into

which applicant will need to submit exhaustive details re the project

This will include detailed Floor Plans and Structural Drawings , along with

names / contact details of Architects / Structural Engineers etc

The FORM will require slab-casting dates for each slab and the final

completion date when builder will apply for Occupation Certificate

* The Form will have a section called

SELF CERTIFICATION / DECLARATION

Builder would be required to tick YES / NO against each item as shown :

Does your proposed Building / Structure / Project , satisfy the criteria /

notifications / regulations , issued by the concerned Ministries in respect

of :

# Built-up Area........... ( YES ) / ( NO )

# Height Restriction

# Fire Fighting

# Water Harvesting

# Roof-top Solar Power

# Effluent Treatment

# Garbage Disposal

# Earthquake Resistant Structural Design..............etc

Clicking on each item will reveal the relevant " Notification / Regulation " issued by the concerned Ministry

To make the process absolutely fool-proof , the form will insist on an " Electronic Signature " of the applicant

DECLARATION / UNDERTAKING :

" I declare that I have read each and every notification / regulation , listed in respect of items mentioned above

I further declare that I explicitly agree to abide by these regulations

I am aware that Occupation Certificate will not be granted if my completed project is found to be in violation of any of these notifications / regulations

I will not allow any person / entity to occupy any part of this premises , until and unless , Municipality issues to me , the Occupation Certificate

If Municipality finds any violations , I agree to rectify the same before applying for a fresh Occupation Certificate

If Municipality is not in a position to issue Occupation Certificate due to any

violations which simply cannot be rectified , then I will demolish the said building / project / structure on my own and before such demolition , refund with interest , payments collected from the buyers

The plot of land is free from any encumbrances / litigations

I am not in default of any loans taken from any bank / individuals

I will not accept any payment in cash , nor make cash payments

I absolve the Municipal Corporation of any liability arising out of non completion of my project

I agree that my Building Permit Application and my Registration Application details , be made accessible to public on your web site , along with full details of my past / current projects and full details of my balance sheet / bank borrowings "

GRANT OF APPROVALS BY MINISTRIES :

As soon as the builder submits the online BUILDING PERMIT APPLICATION , it automatically and instantly , appears on the web sites of ALL the concerned Ministries

The concerned officer of each Ministry , makes APPROVED / REJECTED entries in the application form , from the backend

If rejected , he will provide the reasons

Ministry officers are required to carry out this entry , within 24 hours

As soon as an officer of any Ministry makes entry and SUBMITS , the application forms on web sites of ALL Ministries and web site of the concerned Municipality , get updated simultaneously and instantly , making for MIRROR IMAGES at all times

As soon as any entry is made , a copy gets emailed to the applicant builder

Any " editing " of the application form by the builder , will start the entire process , all over

Applicant builder will be obliged to display the latest emailed form at the site

The database so created on web sites of ALL Ministries - and concerned Municipality - will be searchable State-wise / City-wise

CHANGES IN RELEVANT LAWS :

To speed up any litigation between the parties concerned ( Builder / Buyers / Central & State Govts / Municipality / Bankers etc ) , existing laws may be changed

IMPORTANT :

Every application must be in the open domain and visible to anyone , online and transparently

There should be provision for any visitor of the web site to report any abuse / violation of regulations or any objection to the proposed construction

ADVANTAGES :

If such SELF CERTIFICATION process is implemented , it should be possible for India to beat Singapore , where getting 11 approval takes only 26 days !

It would be ZERO days in our case !

Now couple this with abolition of Corporate Income Tax for Construction Industry for the next 10 years and witness a MIRACLE

Then only it would become possible for achieving the following targets set by different States / Centre , under HOUSING FOR ALL:

* Maharashtra........... 5 lakh ( By 2020 )

* Gujarat................... 50 lakh ( 2013 - 2018 )

* Centre.................... 220 lakh ( by 2022 )

Also imagine :

* Employment it would generate

* FDI it would bring in

* Our rank in EASE OF DOING BUSINESS

Need of the hour is :

* Come out of " Analysis Paralysis "

* Get rid of historical baggage

* Break free from the legacy of the past

* Think " Out of Box "

* Take risk without worrying about possible failure

* Make Course-Corrections , as you learn what mistakes got made

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hemen parekh

05 Nov 2015

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Tuesday, 3 November 2015

NETWORK OF CURRENCY NOTES ?

( A Mobile App called, " BLACK-MAIL " )

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While inaugurating the International Conference on " Networking the Networks " on Nov 2 , our FM Shri Jaitleyji said :

" Tax evasion and money laundering will become extremely difficult in the next 1-2 years, with the global automatic exchange of information system coming into effect on a real time basis "

To speed up this process and make it truly automatic / real time , I suggest resorting to the following technologies :

# Internet of Things ( IoT )

As each currency note of Rs 500 / 1000 , is getting printed , embed it with microscopic

RFID chips

Besides communicating with each other , these chips will also transmit their existence

location , through internet , to cloud-based servers of Income Tax Department

This will form a " NETWORK OF CURRENCY NOTES ( NoC ) "

You may like to call this Internet of Currency ( IoC ) , a sub-set of IoT !

# Internet Protocol Address System ( IP V 6.0 )

Each Rs 500 / 1000 currency note must be assigned ( at the time of printing ) , its own

unique Internet Address , using IP V 6.0

This IP address should be linked with the unique Serial Number printed on each note.

Since IP V 6.0 , will be capable of assigning " 2 * 10 to the power of 128 ", no of IP

addresses , there is no danger of running out of addresses , even if we decide to extend

this idea to Rs 100 currency notes !

Here are the most important BYE - PRODUCTs :

* No more possibility of fake / forged / counterfeit , currency notes !

* Plastic currency notes will last 10 times longer !

This reform will enable the Central Government / Income Tax Department , to :

* Continuously trace the movement of each of these higher denomination currency notes

* Instantly locate any place ( using Google Map based GPS ) , where there is an

accumulation of more than Rs 1 Crore worth of currency notes

Such accumulation will be made to appear as a TAG CLOUD on the web site of IT Dept,

like thousands of balloons floating on a map of India , capable of being drilled down to

within 1 Sq Meter !

On each balloon , will appear a number announcing , " Amount of Cash here - Rs " !

This will vastly simplify the task of Anti Corruption Dept / Enforcement Dept etc

Of course , RBI will need to allow 6 month's time to the owners of current paper currency notes of Rs 500 / 1000 , to get these exchanged with new plastic notes before withdrawal of the old notes from circulation

Now , would not that distribute the hidden , unaccounted wealth ! - a welcome fall out !

But then such transparency might lead to break-down of social order / chaos

It may be a better / safer / saner solution for such balloons / tag clouds to appear , on a secret Mobile App , available only to the officers of Enforcement Department ( ED )

You may want to call this app , " BLACK-MAIL " !

Of course , my suggestions may become outdated with the arrival of mobile wallets based CASHLESS SOCIETY , by 2030

In the meantime , should Shri Arun Jaitleyji and Shri Ravi Shankar Prasadji , want this implemented , it can be done in 6 months , at one tenth the cost of MoM ( Mars Orbital Mission ) , ie approx Rs 43 Crores

All they have to do , is to tell the bureaucracy :

" Since we need not depend upon Opposition parties to pass a bill in Rajya Sabha , please go ahead and implement this - in less than 6 months "

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hemen parekh

04 Nov 2015

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Sunday, 1 November 2015

DIGITAL INDIA ?

To take our GDP growth-rate above 10 % , it is absolutely necessary to empower each and every citizen digitally

This can only happen when all of them get internet-connected

To enable such connectivity , following conditions must be met :

SMART PHONES :

All citizens must have G4 / Wi-Fi capable / GPS - NFC enabled mobile phones

This is something competition among manufacturers will take care

BROAD-BAND :

Entire country ( every nook and corner ) gets connected with , either land-based fiber optic broadband or wireless broadband , with minimum speed of 100 mbps ( as in S. Korea )

For this , the Central Govt must persuade Google ( Loons ) / Microsoft ( White space ) / Amazon ( low orbit satellites ) and other MSPs

E MAIL ID :

Every citizen must be, allotted / assigned , a FREE Email Id , based on his / her Aadhar Number ( xyz@digitalindia.com ? )

This must be done by the Central Government

ONLINE CITIZEN DATABASE :

E-Mail Ids / Mobile Numbers / Postal Addresses of all the citizens should be easily accessible / searchable in an Online Citizen Database ( remember those printed Phone No Directories of MTNL / BSNL , of 30 years ago ? )

Any citizen can EDIT his own database by login from his Mobile phone only

And why not a similar ONLINE / freely SEARCHABLE database of :

# 3+ Lakh Companies in Organized Sector

# 30 + Million MSME Companies

And why not enable anyone to be able to send E Mail Messages to any of these Companies from the web site of Department of Company Affairs or of Registrar of Companies or of web site of Ministry of MSME ?

Just imagine the boost this small step will give to trade !

INTERNET ADDRESS :

All electrically / electronically operated devices / gadgets / appliances etc , must be assigned IP V 6.0 address , before being sold

Beginning may be made with screens of all types ( Mobile / Tablets / PC / TV / Bank Locker Cover , etc )

And , above all , the UNIQUE SERIAL NUMBER on each currency note of Rs 500 and Rs 1,000 , will also become it's IP V 6.0 address

Let IoT ( Internet of Things ) begin with these currency notes

Mr Vishal Sikka would be glad to help out !

TRACKING MONEY FLOW :

All currency notes of Rs 500 / 1000 , to have built-in RFID chips

Accumulation of a large number of RFID chips in any single location ( including private safe deposit lockers / wall cavities etc ) , to show up as a TAG CLOUD , on web site of Income Tax Department / Google Maps etc

Implication of this " Reform " is enormous

Currently , some 97 % of payments in India are made in cash

This reform alone will ensure that , within one year , ALL payments are made through Cheques / official banking channels / mobile wallets !

Who wants a BIG tag-cloud on his bank locker ?

Now couple this with other following reforms :

* Abolish Personal Income Tax (Revenue loss = Rs 2.45 lakh*crores )

* Introduce Bank Transaction Tax - BTT ( Income = Rs 15 lakh*crore )

* GST revenue due to those 97 % official (Additional Rs 50 lakh*crore ? )

* Other reforms suggested by at..www...hemenparekh...in>Blog such as

# Conducting ALL elections , using : VotesApp : mobile app ,

# Delivery of Govt services , using : I SIN><U SIN : mobile app

# Eliminate Black Money ( Create Wealth to Create Jobs )

# Generate Clean Energy ( From Greed to Great ? )

# Health Care ( 3D-Digital Delivery of Drugs )

# Paperless Society ( Digital Locker )

# Govt Budgets ( Budgeting by Objectives )

# Increase Domestic Saving-rate ( Jan Dhan Sarjan Yojana )

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hemen parekh

02 Nov 2015

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