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

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday 20 April 2014

SCAMS ARE AVOIDABLE !



Early this week , Supreme Court held that , CAG ( Comptroller and Auditor General ) has the right - and obligation - to conduct an audit of telecoms



WHY  ?



>   Spectrum is a natural resource that belongs to the nation


>   Private telecom companies have a revenue-sharing agreement with the
      Central Government , for allowing them to " exploit " this natural
      - and national - resource



WHAT  ELSE  ?



>  This logic should also hold good for all private companies , who are
    allowed to exploit India's NATURAL / NATIONAL resources , to create
    materials / energy


    Here is a partial list :


    *  Fossil Fuels ( Oil / Gas / Coal )

    *  Minerals

    *  Sea-bed Nodules

    *  River Waters

    *  Wind

    *  Tides

    *  Sunlight

    *  Sea Water

    *  Jungles / Trees

    *  Earth's Magnetism

    *  Electromagnetic Waves

    *  Gravitational Force.....etc



HOW  ?



*  Tendering process must be public / transparent / equitable

*  Tender terms must be open for scrutiny/comment  by public

*  All resource-exploitation licenses must follow auction route

*  Eligibility Criteria must be pre-defined / publicized in advance

*  Licenses should be valid for pre-defined fixed period

*  Licenses cannot be renewed / extended

*  Concerned States must have a share in profit-sharing etc

*  Profit - sharing formula must be part of tenders

*  Any failure / delay on part of the Licensee Company to implement the
   Contract , will require return / surrender of the natural resource
   concerned , to the Central Government, with appropriate penalties

*  Natural Resource involved , cannot be hypothecated to banks / financial
    institutions to raise loans


*  Shares of the licensee companies
 cannot be traded in open market or
     pledged , without prior permission from Central Government

*   CAG Audit will be mandatory and reports must be published

*   Tendering / Auctioning / Licensing must not be handled by any Govt
     Department . A separate statutory authority should be created for this

*   To encourage early / fast implementations of Exploitation Licenses , there
     will be no Corporate Income Tax for the Licensee Companies

*   Each license will be given only to a SPV , created for this purpose

*   Cost-escalation leading to any Selling Price Escalations would be pre-
     defined



IN   HIND-SIGHT



*   Had we followed the above-mentioned process , perhaps , we could have
     avoided several scams of recent past and KG-D6 type  disputes


*   We could have also avoided ,

     #   Arbitrary price escalations

     #   Inflation

     #   Private profiteering

     #   Costly litigations

     #   Policy and Decision Paralysis



*   hemen  parekh  ( 21  April  2014  /  Mumbai  )





      

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