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

Monday, 10 December 2018

Trans-portability Theory


Trans-portability  Theory


{  From   Special   to   General   }




Einstein's came up with “ Theory of Special Relativity “ in 1905

Then , he proposed  “ Theory of General Relativity “ in 1915


Context :



Highlights :

In a report titled ' Transforming India's Mobility ' NITI Aayog had suggested ,

#    using the feebate mechanism to incentivize the use of green mobility
       technologies

#    identifying potential mechanisms

#    develop a regulation for incentivizing green mobility technologies with a
       feebate mechanism.


Proposed Methodology :


NITI Aayog wants to levy a " Penalty " on 2 wheelers ( 2 crore getting sold per year in India - and almost all use Petrol  – a polluting fuel )

and,

Use this money ( Rs 500 per 2 wheeler = Rs 10,00 cr / year ) to give " Subsidy " to Electric Vehicles ( non - polluting )


For calculating that

·         Penalty  for the polluting 2 wheelers , and

·          Subsidy , for the Electric Vehicles ,


NITI Aayog proposes to use the following “ factors “ of usage :

#  " Energy Used "         (  Polluting Petrol vs  Non polluting Electricity )

#    TIME of usage         (  Weekday Working Hour   )

#    LOCATION of use    (  Vehicles entering City Centre )


Also envisaged in another report of NITI Aayog ( Goods on the Move ) :

#  Charging trucks to enter the city during congested periods while incentivising them to
    enter during night time ( with both, costs and savings being passed through to the
    receivers of those goods )


Let us call this proposal of NITI Aayog ,    Theory of Special  Transportability 


So , why is Heavy Industries Ministry objecting ?


·         There is already a 16 per cent Feebate in place as EVs attract 12 per cent GST whereas the IC-engine vehicles attract 28 per cent

·         NITI proposal could lead to a hike in prices 



·         Practical challenges associated with the collection of the tax , once introduced


·         Who will collect it as now all cesses have been subsumed under the GST ?


=======================================================

My  Take  :


·         NITI Aayog proposal is more of a “ Special Theory “ which takes into account only 3 factors ( Energy type / Time / Location  )

·         It ignores the following factors :

Ownership – Purpose – Age of Vehicle – Capacity – Where used – When used

·         Despite a 2 wheeler using “ dirty petrol “ , if ALL of the above mentioned factors were taken into account , there will be scenarios when a 2-wheeler is causing less HARM to the environment than even an Electric car !

·         All of these factors ( of usage ) do not cause “ identical “ impact on the environment . It is therefore  essential to assign different “ Weightages “ to each factor , depending upon it’s “ Harm Potential “

·         Since ALL vehicles are causing at least “ some and VARYING amount “ of HARM to the environment , throughout the day ( and night ) , there is no case for penalizing “ some ( by permanent “ branding “ as bad vehicles ) and subsidizing others ( by permanent branding as good vehicles ) . This is a flawed argument  !

·         No proposal must depend upon “ human intervention / discretion “ , which will , not only  make it difficult ( more likely, impossible ) to implement ,but will invariably lead to increased corruption !

·         A proposal must be seen as “ just – impartial – unbiased “ and must get implemented consistently and automatically without fear or favour “ ! Only then it will be respected even if it is “ disliked “





My proposal :


Envisages a technology-based platform which collects a “ TRANSPORT  TAX “ from ALL vehicles , 

  Automatically - Consistently

  Every Hour

  Without human intervention

-        based on integrated  Pigouvian  approach to transport tax pricing


You might even want to call ,

Transport : an Integrated Logistic Plan ?   ,


-        a “ Theory of General  Transportability

====================================================================

11  Dec  2018





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