Blog: November 2015

Monday, 30 November 2015

WHOLE TRUTH , PLEASE !

Headlines in this morning's News papers are :

With GDP growth rate of 7.4 % in july-sept quarter , India overtakes China !

No doubt , true :

But only half - truth !

The whole truth is :

With base GDP figure of $ 2,000 Billion , India would have managed to add to its GDP , $ 158 Billion @ 7.4 % ( for a whole year , of course )

Whereas ,

With a base GDP of $ 10,000 Billion , China would add to its GDP , $ 640 Billion @ 6.4 %

Let us be proud of our achievements ,

without ever forgetting that our economy is just ONE FIFTH that of China's !

We have a lot of catching-up to do

As Amitabh Kant ( Secretary - DIPP ) keeps drilling in our ears :

India must continue to grow at 9-10 % per year for next 30 years , to pull its 400 million people above the poverty line

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hemen parekh

01 Dec 2015

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Saturday, 28 November 2015

GST / GIVE AND TAKE

Dear Shri Modiji / Shrimati Soniaji :

It was statesperson like for you, to reach out to each other last evening , in order to arrive at an agreement on GST

All negotiations have two , initially opposing , parties

No agreement can be arrived at , on the " Terms " of only one of the parties

A customer sold against his will , ceases to be a customer !

Agreements imposed through numerical strength of membership , are bound to get sabotaged

To arrive at a " Lasting Solution " , there must be give and take

Here is my suggestion :

NDA GIVE / OPPOSITION TAKE :

* Accept a cap of 18 % for GST in the Constitutional Amendment Bill

OPPOSITION GIVE / NDA TAKE :

* A provision in Bill to enable the Government of the day , to raise the GST % in

subsequent years , through an enabling provision

This provision ( not mandatory ) , will allow the Government to raise the GST %

through the Annual Central Budget each year

( anyway , Union Budget has to be passed in Lok Sabha , each year )

* The amount by which GST " may " get raised , to be calculated as follows :

# Starting GST % = 18 %

# Assume that , in 2016-17 , CPI rises by 10 %

# Take 5 % of that 10 % rise in CPI . That works out to 0.5 %

# So , in 2017-18 , GST may be raised by 0.5 % , to become 18.5 %

# This is the UPPER LIMIT . Government may choose to revise GST to any

figure less than 18.5 %

This is a perfect FACE SAVING FORMULA / a WIN-WIN situation for both !

This is not a matter of , " WHO is right ? "

This is a question of , " WHAT is right ? "

Carpe Diem ! Cease this moment to strike a deal by today evening !

Good Luck !

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hemen parekh

28 Nov 2015

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Thursday, 26 November 2015

SURROGATE COW FARMS ?

Speaking at a Start-Up event at San Jose ( California ) on 27th Sept, PM Shri Modi said :

" When each of the 500 odd towns produce 10 Start-Ups and each of our 600,000 villages produce six small businesses , on a regular basis , we will create an enormous economic momentum and generate a large number of jobs in our country

I want to see the idea and spirit of Start Ups light up the economies and the fortunes of people in rural India "

Entirely doable . Consider the following suggestion :

* Chinese biotechnology firm BoyaLife and South Korea's Sooam Biotech , are constructing in China, World's largest animal cloning factory

* Production will start next year , with an initial capacity for one lakh cattle embryos a year , growing to one million per year

* Dog , racehorse and COW embryos will be produced

Obviously , BoyaLife will need to " rent out " cow-wombs , to grow / nurture these embryos

And that is THE OPPORTUNITY , to be seized by our rural Start-Ups !

By setting up , " Surrogate Cow Farms " of 10 cows each

Then renting out these cow-wombs to BoyaLife , for $ 1,000 per surrogacy ( In city of Anand - Gujarat , human wombs can be rented out for $ 15,000 )

One million cow-wombs will earn these rural Start Ups , $ 1,000 million / year !

At 10 cows per Start Ups , 100,000 Start Ups will be born !

Raising our EXPORT earnings by $ 1,000 million !

And nothing should stop these rural Start Ups from importing embryos of Dogs and Racehorses , and then re-exporting fully grown pets to Europe / America !

I only hope , some MORAL POLICEMEN do not start a controversy by shouting :

" How can we allow our holy Indian cows , to bear the unholy Chinese cattle embryos in their wombs , when we just banned our surrogate human mothers to carry the embryos of Foreign citizens ? "

Of course , it is another story that these very same " moralists " have no love lost for the prostitutes who are forced to " rent out " their very human bodies , in order to survive !

One last request to the concerned Ministers / Secretaries in NDA government :

Please , include these " Surrogate Cow Farms " in your definition of Start Ups in your proposed

" Start Up Policy Document "

It is another matter that , each and every jobless individual ( not earning a salary from some other individual or organization ) , and struggling to become self-employed , qualifies as a Start Up

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hemen parekh

27 Nov 2015

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THEFTS CAN BE OBSOLETE !

Yesterday ( 26 Nov 2015 ) , a Cash Van driver in Delhi , escaped with Rs 22 Crores worth of cash

Obviously this heist consisted of currency notes in denominations of Rs 500 and Rs 1,000

Now such thefts would become a thing of the past if my following suggestion ( sent to Central Ministers / Secretaries / NITI Aayog members etc ) , were to be implemented :

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# 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 " !

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hemen parekh

27 Nov 2015

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Sunday, 22 November 2015

Thank You , Policy Makers !

Dear Policy Makers :

I just came across following news report:

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Financial Intelligence Unit to generate reports on black money suspects in 72 hours

( Source : Economic Times / 22 Nov 2015 )

NEW DELHI:

Government has bolstered the capabilities of the elite Financial Intelligence Unit (FIU), which can now dish out volumes of data on suspicious transactions in 72-hours flat and gain access to

" secret database of offenders maintained by various law

enforcement agencies in the country. "

Earlier, when an agency wanted to get any information on financial transactions and other similar details on entities on its scanner the time taken used to be between a fortnight to 20 days.

The elite financial snoop wing under the Union Finance Ministry has switched to

full electronic mode for exchange of data,

from the earlier existing paper-based pattern, with all probe and enforcement agencies of the country like the Income Tax department, CBI, ED, DRI and Intelligence Bureau among others, beginning November 1.

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Thank you for listening - and acting on my following suggestion , sent to you sometime back

( Source : www.hemenparekh.in > Blogs / E - Governance / 03 April 2014 )

E - Governance ?

Can e-Governance help eliminate corruption ?

Most certainly

Look at the following , partial list of Central and State Agencies set up to fight fraud , money-laundering , corruption , tax-evasion , economic crimes etc :

* Public Accounts Committee ( PAC )

* Central Vigilance Commission ( CVC )

* Central Information Commission ( CIC )

* Research and Analysis Wing ( RAW )

* Serious Fraud Investigation Office ( SFIO )

* Information Bureau ( IB )

* Economic Offence Wing ( EOW )

* Central Bureau of Investigation ( CBI )

* Department of Revenue Intelligence ( DIR )

* Comptroller and Auditor General ( CAG )

* Anti Corruption Bureaus ( States ) ( ACB )

* Enforcement Directorate ( ED )

* Lok Ayukts ( States )

* Lok Pal ( Central )

Despite such an army of Agencies , how do corrupt manage to get away ?

Or , in case caught , manage to delay delivery of punishment for years ?

No doubt , there must be several reasons , including , inter - agency rivalry to get credit - something difficult to eliminate altogether

But , I believe , the most important reason is :

Lack of a COMMON / COMPUTERIZED database of all offences / cases / persons being investigated,

- which is readily " Accessible " to all of these Agencies , all over the country ( 24 * 365 )

Already , every Agency compiles huge dossiers on " Suspects " in its own

" Departmental Database " , which is never shared with other Agencies ,

leading to ,

* Huge amount of duplication of efforts / information

* Fractured / scattered profiles of " Suspects "

* Enormous waste of time / resources

What will help ?

* Dismantling of individual departmental databases

* Merging of all Agency-wise databases into a SINGLE / UNIQUE database

* All Agencies to enter their findings / data / info into this COMMON

database , with nothing preserved on local computers

* All data-entry FORMS to be ONLINE . No paper forms at all

* All local computers connected to ultra-secure Network ( Encrypted )

* " Access Rights " to individuals , based on Biometric Identification

Will BJP want to make this , a prominent promise in their Poll-Manifesto , likely to be released on 7th April ? ( Congress / AAP missed this boat ! )

It is high time political parties stop talking of motherhood in vague terms and start telling the voters ,

" If you vote us to power , this is precisely what we will do , to bring about E-GOVERNANCE - and do it within 6 months of assuming power "

* hemen parekh ( 04 April 2014 / Mumbai ) ..www.hemenparekh.in > Blogs

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hemen parekh

23 Nov 2015

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Thursday, 19 November 2015

Making Molehill out of Mountain ?

Yes , you read it right !

How else can you describe the following ?

* Gold Monetization Scheme managed to garner 400 gms of Gold in first 15 days

Extrapolate to 100 Kg in a year ( give benefit of doubt )

How many years to attract all of 20,000 TONNES , estimated to have been hoarded by

Indian citizens ? ( Valued at Rs 52 LAKH*CRORES )

Correct answer : 200,000 years

* SIT appointed by Govt , managed to uncover ( not get back ) , Rs 10,000 Crores worth of

black money , illegally stashed abroad by Indians ( approx $ 2 Billion ) , in one year.

How many years will it take to bring out into open , $ 2000 Billion worth of domestically

hidden black money ( Gold / Land / benami assets etc ) ?

Correct answer : NEVER

Why this ignominy ? - this miserable failure ?

Simple . There is no power / law on Earth , which can vanquish " Human Greed "

But there is a way to bridge the divide between " Greed " and " Goodwill "

By harnessing the " GREED " to lead India to " GREATNESS "

By :

* Abolishing Personal Income Tax ( Revenue loss of Rs 2.4 Lakh*Crores )

* No questions asked for any amount of cash deposited in Jan Dhan Yojana bank accounts

* By launching SPVs for , Infrastructure / Health / Education / Renewable Energy /

Electric Transport / Green Cover Forestry / Affordable Housing / Smart Cities etc

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

* Dividend / Interest from such SPVs to be directly credited to Jan Dhan bank accounts

* Introduction of Bank Transaction Tax ( BTT ) @ 2% to yield revenue of Rs 15 lakh*crore

* 2 % ( out of 27 % ) of GST , to be directly deposited in the PPF a/c of the buyer

( This will ensure that all citizens have PPF account )

* This 2 % to be used to pay the premium for that person's health insurance

This is , in my opinion , the surest / fastest / least controversial method to :

# Solve the problem of BLACK MONEY for ever

# Put that $ 2000 Billion worth of BLACK MONEY to productive use

# Generate 100 million jobs in 5 years (to take care of addition of 12 million to workforce )

# Raise GDP to 10 % by 2016-17

Best feature of my proposal :

No need to beg the opposition to pass any BILL in

Rajya Sabha

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hemen parekh

20 Nov 2015

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