Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Sunday, 13 October 2019

A Railway Revolution ?

A  Railway  Revolution ?

Yes, Indian Railways are on their way to enable anyone to know, at any time, the precise position ( location ) of any train in India. Much like mobile app " Flight-aware " for airplanes

Here is the news :

Indian Railways is linking its trains to an ISRO satellite. How will it use 1.4 crore daily updates?  


Apart from knowing exact location and speed of trains, this ISRO-aided system will help in future planning.

Indian Railways is linking its trains to a satellite network of ISRO to collect 1.4 crore daily real-time updates on " location " and " speed ".

Congratulations , Shri Mukesh Nigamji,

[ MD, Centre for Railway Information Systems /  mukesh.nigam@cris.org  ]

With help of GAGAN [ GPS aided GEO Augmented Navigation ], you have managed to position every 30 seconds, some 20,000 passenger trains , starting from 7349 stations ! 

No mean achievement this !

Can this technology be extrapolated to track movements in REAL TIME, positions ( locations ) of 230 million vehicles plying on roads of India ?

And, if it can, what benefits could be expected ?

This is the crux of my following proposal :

{ source :Transport : an Integrated Logistic Plan ?


GAGAN RTIS geo positioning of trains{ Real Time Information System }
My proposal for  a Trans-Tax system for all vehicles in India based on ISRO’s NaviC
Real Time control of train movements / improve punctuality and send emergency alerts
Reducing traffic-caused pollution thru dis-incentivizing fossil fuel vehicles by automatically computing “ Harm Quotient “ of each vehicle and imposing a Trans-Tax on hourly basis
6,000 Locos ( 12,000 by year end )
230 million vehicles ( incl new )
Sensors mounted inside/outside locos will capture and relay data re location / speed / arrival-departure time / unscheduled stops etc , every 30 seconds to control room using GAGAN-RTIS

SIM of RTIS device will work on Airtel and Vodafone network but, in remote areas, it can relay data even without mobile connectivity

Device uses GAGAN to transmit data
RFID based sensors will be factory installed ( for new vehicles ) or retro-fitted. These will relay to NaviC, vehicle’s location every 10 minutes , in addition to data such as :
#  Energy Source ( fossil / EV etc )
#  Ownership ( private / public )
#  Purpose ( people vs freight )
#  Age of vehicle
#  Type of vehicle ( 2-3-4 wheel )
#   Capacity
#   Where plying
#   When ( time ) plying
#   Parked or moving ….etc
In case of emergency, driver can talk to the Control Room
Smart Phone of person driving the vehicle will receive SMS from NaviC re impending immobilization of the vehicle, in case lacking sufficient balance in vehicle’s bank account to pay tax
Cost of RTIS device
Rs  2  lakh per loco
May be a few thousand rupees !
How will RTIS help ?
It will enable Control Room operator to :
#   Halt or allow a train to move
#   Grant a block for track repair
#   Check unscheduled stoppages
#   Get accurate / instant location data
My suggestion will :

# transfer the motivation for pollution control to the vehicle-owners 

#  encourage use of EVs and new vehicles 

#  eliminate need for subsidizing buyers or manufacturers 

#  earn hourly revenue

# encourage use of Public Transport

Dear Shri Gadkariji,

This is your opportunity to save millions of Indian Citizens from dying a premature death due to emission pollution vehicles

RTIS / CRIS have proved that my proposal is entirely feasible and can be implemented within one year

with regards,

hemen parekh / hcp@RecruitGuru.com

References :

Pigovian Tax for Polluters ?  

Monday, 30 September 2019

Not a day too soon !

In fact, late by 5 years  !

Context :

Highlights :

The government is considering rationalising personal income tax rates in a move that will result in the increase of disposable incomes, especially among the middle class, and hopefully drive consumption and, therefore, growth

Depending on the impact the decision could have on revenue, various scenarios are being considered, the officials added.

But the idea is to giveat least a 5 percentage point benefit to every taxpayer

One of the options is to introduce a 10% slab for people having taxable income between Rs 5 lakh and Rs 10 lakh.

Currently, this slab attracts a 20% tax rate.

There are also options to remove cess, surcharge and several tax exemptions and reduce tax rate of the highest slab from  30%  to  25%,  

Currently, taxable income between Rs 3 lakh and Rs 5 lakh attracts a 5% rate.

A 20% tax is levied on the second slab (Rs 5-10 lakh taxable income) and 30% tax on income above Rs 10 lakh.

Income up to Rs 2.5 lakh is, however, tax free


Why 5 years too late ?

Following is an extract from my 5 year old email to the Cabinet Ministers :

Immediately modify  PERSONAL INCOME TAX  regime as shown in last column below :

 Tax Slab ( Rs L )
2019 Tax Rate ( % )
Now being considered
Proposed in my 2014 E Mail below

Upto 2.5

2.5 – 5.0
NIL ( ? )

5  -  10
10 %
8 %

10 - 20 
25 %
6 %

20 – 50
25 %
5 %

50 – 100  
25 %
3 %

Ø  100
25 %
1 %


For justification for this INVERSE TAX REGIME , read :

        Don't Ask " How " ?             /  07  April  2014  ]

Without doubt, cutting down on tax rates will :

Ø  increase of disposable incomes

Ø  drive consumption and, therefore, growth

To know who will spend this “ Consumer  Surplus “ on what kind of “ Consumption “ , and how will this boost the Economy, read :

What would they do ?                  [ 03  May  2016 ]

Proposed tax cuts might  – temporarily -  increase online sale of Amazon / Flipkart etc by  $ 10 billion over the forthcoming Diwali holidays

But these cuts are unlikely to set into motion, that VIRTUOUS CIRCLE which alone can take India to a $ 5 Trillion GDP by 2024

What will ?

Better late than Never           [  20 Sept 2019 ]

Listen to the Lone Voice !       [ 28 Sept 2019 ]

01     Oct  2019
     Rsvp :  hcp@RecruitGuru.com

Saturday, 28 September 2019

Listen to the Lone Voice !

If you do not count late eminent legal luminary Nani Palkhiwala , Anil Bokil of Arth Kranti , and myself , then Subramaniam Swamy’s is the lone voice , recommending  total abolition of Personal Income tax

Here is what he said recently in the World Hindu Economic Forum yesterday :


#  Subramanian Swamy advocated the scrapping of unnecessary taxes and abolition of

#  “We have got such complicated taxes that people don’t even know most of them.
    Income-tax should be abolished as it is the most unbalanced tax in this country,” he said

And Anil Bokil’s proposal is quite similar but goes further and spells out how to re-write the entire system of taxation 

As far as I am concerned, I must have sent to the Cabinet Ministers , 20+ emails , pointing out how this abolition would :

Ø    Reduce corruption / black money

Ø    Boost the Consumer Spending and hence the Economy

Exactly 2 YEARS back ( 29 Sept 2017 ) , in my email to the Cabinet Ministers , I put forward my logic ( for abolition ) , as follows :

·         There will be no incentive for tax evasion / avoidance 

This will be a permanent  
FULL STOP to future generation of Black Money

*   With NIL personal tax to pay , all the cash ( black money , no doubt ! ) ,
    lying in bank lockers , will get deposited in official bank accounts , within
    one year

*   All payments will be received by cheques and deposited in Bank Accounts

All stashed away Black Money will , somehow , on its own , find its way in bank
     accounts, - including Black Money lying in Foreign Banks , making SIT redundant !


Savings rate will go up dramatically

That will lead to greater purchasing power for all people

Leading to higher domestic consumption of FMCG / Consumer Durables

This will result in huge collection of GST , offsetting revenue losses

Demand will go up , boosting manufacturing

With rise in manufacturing , sub-contracting / outsourcing will increase , giving a big
     boost to MSME sector

If manufacturing goes up , employment / self-employment ,  will go up

*   For a change , we as a Nation , will learn to celebrate , 

Wealth Creation as a means to reduce poverty

World-size Companies to take on the World

There will be less pressure on demands for higher salaries / wages

If salaries / wages do not rise , inflation will ease

Cost of manufacturing too , will go down

Era of " Low Cost Economy " will set in motion, VIRTUOUS CIRCLE 

Savings will move from gold / land to Financial Assets

With a low cost structure , our products / services  will become , internationally
     competitive and exports will go up

That will improve our current negative Trade Balance / CAD

*   This ( abolition of Personal Income Tax ) 
MUST be coupled with SPVs for  :

Infrastructure Projects ( especially Smart Cities / Corridors etc )

#    Educational Institutions

#     Skill Development Institutions

Health care Facilities

Solar Power ( Eqpt Mfr / Generation / Transmission / Distribution )

Digital India ( Broadband ) Network

No questions must be asked as to the source of money invested in such SPVs

    All income ( Corporate Income or Personal Income by way of dividends / interests etc
    ) arising out of investments made in such SPV , must be tax-exempted

    SPVs , themselves , must not need to pay any taxes for 10 years

         Take away incentive to evade taxes , thereby stopping future generation
    of Black Money

*    Channel all existing Black Money ( locked up in assets , in India or
      abroad ) into the main stream of economy ( Infrastructure Building )

*    Enable current annual inflow of inward remittances from overseas
      Indians to go up from $ 70 Billion to $ 700 Billion

*    Through rapid development of Infrastructure , generate Self
      Employment for 12 million youth every year

*    Drastically reduce FDI requirement for rapid growth of economy

*    By cutting down on government outlay for Infrastructure , reduce govt
      borrowing from market and consequent debt servicing

*    Raise GDP to 10 % by 2018

Why  is  such a BOLD  step urgently required ?

Current tax regime ,

*   Punishes honest people

*   Penalizes wealth creation

*   Encourages creation of " Black Money "

*   Provides incentive for tax evasion

*   Diverts resources into unproductive assets such as cash / gold / land  etc

*   Stops people from working harder / smarter

With this regime , people tend to ask :

*   Why should I work hard and earn more , if the more I earn the more I pay  ?


*   Why not evade paying taxes by hiding real income ?

*   How will I ever be able to buy that 1 room flat costing Rs 50 lakhs ?  I
     need Rs 20 lakhs by way of black money to buy it ! Where do I get that ?

*   For every rupee that the government collects from me as tax , only 15
     paise come back to me in the form of civic amenities .

Dear  Policy Makers :

This is the SIMPLEST – EASIEST – CHEAPEST way to revive our ECONOMY , in a permanent manner , without ever needing any other stimulus

There is no stimulus greater than the Human Greed !

( sources :

Don't Ask " How " ?  /                               07  April  2014 

White Holes of Black Money ?   /  03 June 2014 

What would happen ?  /    29   Sept   2017 

Better late than Never /    20  Sept   2019



Because it is the only way to achieve our target of $ 5 TRILLION economy by 2024 , since it is guaranteed to set in motion that VIRTUOUS  CIRCLE

I hope Shri Modiji finds a few minutes, to read my suggestion


29  Sept  2019

Rsvp :  hcp@RecruitGuru.com