Incentivizing Employment ?

During last budget, Shri Jaitley announced a scheme to incentivize employers to increase employment

Under this scheme , Government would pay 8.33 % EPS , on behalf of Employers , for NEW hires drawing a monthly salary of Rs 15,000 or less , enabling employers to pass on this " saved " amount to the said employee , thereby increasing his " take home " salary

For an employee at exactly , Rs 15,000 pm salary , this would amount to Rs 1250 pm or Rs 15,000 in a year ( like a one month bonus ! )

If  ALL  those  NEW  employees were to be drawing Rs 15,000 pm , then the budget provision of Rs 1,000 cr would benefit some 666,000 persons

But , considering that many may be drawing a monthly salary of less than Rs 15,000 , the number of beneficiaries could go up to ( say ) 1,000,000  ( 1 million against 12 million persons entering job market each year ! )

But implementation of this scheme is anything but simple !

MINT ( 22 Aug 2016 ) talks of the following problems facing the government :

#  How to verify that Companies are simply sacking OLD employees and hiring NEW replacements to avail of the incentive ?

#  To avoid any duplication , the government will verify the number of people employed in a company through the electronic challan-cum-returns ( ECR ) that companies file to submit PF contributions online and UAN and PAN details to ascertain whether a person was employed previously ( since no incentive in case of persons who have worked elsewhere earlier, even for a short period ! )

#  A govt officer said : " What we are trying to do is creating a system where companies cannot  MISUSE govt

 money . We are trying to put up a FOOL-PROOF  system where  ONLY FRESH  JOB creations are incentivized "

#  If a base employment number of a firm falls at any time , the company will not be eligible for any incentives

#  The government will pay the EPS contributions for a period of 3 years, ONLY 

if a NEW RECRUIT works with the company for at least as many years

Given these complexities / hassle , what kind of Companies are likely to claim the incentive ?

Certainly not the large / organized companies , even though they have totally computerized PAYROLL SYSTEMS ! It would just not be worth the trouble !

But , small scale companies employing a few hundred persons - and needing to hire 10 / 15 FRESHERS each year , may get tempted with this scheme

Only to discover that it takes them hundreds of hours of clerical effort to claim that incentive , since their payroll is manual !

I would not be surprised if the Scheme ,

*  manages to provide jobs to no more than 10,000 FRESHERS

*  ends up distributing less than Rs 14  crore by way of incentives

*  costs the government, Rs 50 crores by way of " administering / monitoring / distributing " expenses !

Truth may come out with a RTI application , this time next year !

I earnestly request Shri Arun Jaitleyji / Shri Bandaru Dattatreyaji / Shri Prakash Javadekarji , to create millions of FRESH jobs through implementation of my following suggestion ( sent to them earlier through E Mail )

Create  Wealth to  Create  Jobs 

(  http://myblogepage.blogspot.com/2014/02/create-wealth-to-create-jobs.html  )

(  26  Feb  2014  )

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Here is my suggestion :

Set in motion , " INVERSION  of JOB  REDUCTION " regime , under which ,

"  The more jobs a company creates , the less Corporate Tax it pays "

Example :

*    Up to employment of 100 persons  ...............................30 %

*   101  -  500 persons....................................................  25  %

*   501 - 1000 persons ...................................................  20  %

*   1001 - 5000 persons ..................................................  15  %

*   5001 - 10,000 persons ................................................. 10  %

*   Above 10,000 persons .................................................    5  %

Let us celebrate those who provide employment to large number of persons

Let us celebrate BIGNESS

Let us create hundreds of  WORLD SIZE  corporations and take on the World

On top of this , provide  Additional Tax - Breaks  ( Discounts ? )  to corporate as follows :

*   Average Age of Employees at 30 years.......................  1 %

*   Ave age at 25 years.................................................  2 %

*   Ave age at 20 years .................................................  3 %



Of course , very strict and transparent rules will need to be framed to compute :


>    Number of Employees  ( Only Permanent - not Probationers / Trainees / Apprentices  )


>   Average Age ( as on 31 March of Tax year )......etc




But , here is an important aspect of this ,


" Incentivize  Job  Creation  "  Scheme

Today's labour laws make it extremely difficult - if not impossible - for employers to layoff / retrench workmen , if demand for their products / services , shrinks


Hence , to take advantage of this Scheme , employers are unlikely to hire thousands of youth , if they cannot easily trim the workforce , to match the shrinking demand


So , an important corollary of this Scheme is to modify our existing Labour Laws to facilitate layoff / retrenchment , when situation so demands , while protecting the interests of the workmen concerned

BENEFITS  OF  MY  SUGGESTION :

*  Emphasize on TOTAL employment number and not on " Additional Hire of only FRESHERS " , during a year

*  No linkage to types of employees , or amounts of salaries / wages ( whether covered by EPS or not )

*  Only year-end ( 31 March ) Employment Numbers form the basis ( Just ONE figure )

*  No need for any BASE YEAR

*  No need for complicated " checks " for duplications

*  Involvement of just ONE government department , viz: Income Tax Department

*  No need for checking whether FRESHER worked for 3 years or not ( or had earlier worked anywhere else )

*  Companies from all around the World, would rush to "set up shop" in India and close their operations elsewhere

To know how simple it would be to implement my suggestion , read detailed procedure in my following blog

( also sent to the NDA ministers as email , on 01 June 2016 ) 

From  BAD to  MAD

(  http://myblogepage.blogspot.com/2016/06/from-bad-to-mad.html  )

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25  August  2016

www.hemenparekh.in / blogs

1984 was nothing !

Remember , what George Orville predicted in his book , " 1984 " ?

No matter where you go , the BIG BROTHER ( the Establishment ) will be watching you - and will know exactly, what you are doing / saying , through ubiquitous CCTV cameras

This prediction is gradually being realized in a few cities of the World -  with still , a long way to go

Times of India ( 18 Aug 2016 ) carries a news report which says that Govt may introduce radio tags , iris scans for prisoners

Acting advocate general ( Maharashtra ) , Rohit Deo told a division bench of High Court :

"  The State government is examining the feasibility and legality of fixing RFID chips in the bodies of prisoners to track them by GPS if they are released on parole or furlough "

USA Food and Drugs Administration has approved the use of RFID chips in humans and it is widely practiced in US prisons

Today's Hindustan Times , carries following snippet :

" Scientists have developed a way of communication that may allow brain implants and contact lenses to talk to smart phones

A contact lens for instance, could monitor diabetics' blood sugar level and send notifications when the level drops "

What can you expect next ?

A RFID / GPS enabled permanent tattoo ( temporary ones are already available ! ) , fixed on hand , at birth for each child , to replace :

#    Aadhar  Number

#    PAN Number

#    Passport ....etc  ?

But of course , such a draconian , privacy-violating , reform is unlikely to be initiated by ANY government or passed as an ACT by any legislature ! There would be a popular revolt and that government will lose next election !

But what is holding up NDA government from discarding old / paper-based currency notes of Rs 500 / 1,000 and replace these with new / plastic-based notes , embedded with RFID micro-sensors ( thinner than human hair )  ?

BENEFITS :

#  This REFORM will permanently eliminate CORRUPTION and BLACK MONEY from our society , because each such

   

     note ( and any pre-determined accumulation ) , will continuously announce its GPS location and get tracked  !

#   This reform does NOT require passing of any Bill in Parliament

#   If coupled with a Amnesty Scheme for investment of all existing BLACK MONEY into Infrastructure SPVs (

     without any questions being asked or any penal action ) , this innovation can bring into the MAIN STREAM

     ECONOMY , Rs 100 Lakh*Crore , within 6 months ! ( Black Economy is 70 % of our GDP of Rs 140 lakh*crore )

   

    

#   This will dramatically raise GST collection by an amount of Rs 18 lakh*crore ( since Rs 100 lakh*crore

     of Black Money will get used legally for buying of either GOODS/ SERVICES, somewhere in the main stream

     economy , attracting GST @ 18 % rate )  

    

     This windfall will get equally shared by the Centre and the States , and help reduce  govt borrowings

     For this reason it will become the MOST POPULAR REFORM  ever , not only among ordinary citizens but

     also among all States , irrespective of which political party they belong to  !

By sending emails to NDA ministers , I have been advocating this for last two years and have not given up hope !

I am sure , if introduced , India will show to the entire World Economy , an example of Social Justice / Equity !

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24  Aug  2016

www.hemenparekh.in / blogs

HORN OK ?

No doubt , you have seen these words painted behind many trucks in India

But Transport Minister , Shri Gadkari says : HORN  NOT  OK  !

Times of India ( 17 Aug 2916 ) carries a news report titled :

"  Gadkari wants to silence horns "

It goes on to quote Shri Gadkari :

"  Honking and using pressure horns is a big menace on our roads. Only rules and regulations can't address this problem . We need a change in behavior and mindset of drivers "

Last week Shri Gadkari  introduced a bill which will impose on the erring ( honking ) drivers , a fine of Rs 1,000/-

A repeat offence will attract a penalty of Rs 2,000/-

Shri Gadkari added :

" The central law will create an enabling framework for the enforcement agencies to use these provisions for reining in violations

The enforcement agencies must also do their job with sincerity and must not use these provisions for making a quick buck "

Apparently Shri Gadkari is all too aware how this law will get abused !

And prey , in a traffic of hundreds of vehicles passing any road-crossing every minute , how will the policeman on duty decide " WHO honked ? "

Will not , on-the-road arguments / disputes ( Where is the proof that I honked ? ) end up in " It is your word against mine " ? And bring the traffic to a halt ?

Shri Gadkari thought of automatic toll plazas , where each passing car would be embedded with an RFID chip

Even as the car slows down just slightly for CCTV cameras to read the Car Number and transmit it to a Central Server , the toll amount gets deducted automatically from the prepaid RFID chip !

No need for a human attendant to collect payment , no waiting in a queue , no arguments !

Why can he not just mandate all car / truck manufacturers to pre-install a RFID based SCADA chip in their vehicles which will flash the car number of the honking car, on the Mobile Phone of the nearest policeman ?

No arguments !

And instant / automatic penalty deduction thru Mobile Wallet details , embedded in that SCADA chip !

( Some of these data will need to be entered into the chip by the Vehicle Dealer at the time of sale )

But then nothing stops Shri Gadkari to tell the vehicle manufacturers :

"  What we need is a TRANSPORT REVOLUTION

   To bring that about , each SCADA chip must get hard-coded with full details about that vehicle , such as :

   *  Type of Engine ( Petrol / Diesel / Electric etc ) with CC / KW capacity and Engine Number

   *  Make / Model / Year of manufacture / Sitting Capacity etc

   *  Anything else that you ( the Manufacturers ) can think up of , which will ultimately lead to sharing of

      AUTONOMOUS CARS / BIKES  and help reduce individual/personal ownership. for a vastly underutilized asset "

   This will enable the Transport Ministry to " Acquire " a variety of Data , to keep track of the following

   dynamically,

   *  No of vehicles on our roads at any time / any place ( Traffic Density ) and their direction / velocity for better

       traffic control . Delivered through a Mobile App ( called, DIVERT ? ), this will help motorists in commuting

   *  Amount of Emission Gases being injected into the atmosphere by all the vehicles and each vehicle .

      Every time any vehicle fails to meet BHARAT VI emission standard , its Vehicle No will flash on the Mobile

     Screen of the nearest Policeman , who will pull it aside and immobilize it till set right !

   *  Which vehicle got involved in an accident , when , how , where and may be , even " why " !

   *  Which vehicle honked when / where

I am sure , readers will come up with a list of other benefits

  

Much easier than trying to change ,

#    Mindsets of drivers

#    Temptation of trying to make a quick buck

For a change , instead of following, can we think of leading the World ?

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23  Aug  2016

www.hemenparekh.in / blogs

Wanted : 10 Lakh Teachers

Times of India ( 21 Aug 2016 ) , carries a news report titled :

"  Nearly 10 lakh teachers posts vacant : HRD Ministry "

It goes on to say :

Union Minister of State for Human Resources Development ,  Shri Mahendra Nath Pandey  said on saturday ,

" There are 8-10 lakh posts of teachers lying vacant in educational institutions , even as the government is taking initiatives to clear the backlog and is also inviting suggestions to update the Education Policy , which has not been revised since 1976

Though there is an acute shortage of teachers , it has been created due to a backlog of posts lying vacant over years 

In our country, the education policy is not properly implemented as it was first made in 1962 and revised in 1976 . However , no government  took initiative to revise it in all these years "

When Shri Pandey talks about  " No government .... " , I presume , he includes the current NDA government , as well !

He must be congratulated for being so open and frank !

May be he came to read my following suggestion , emailed to Smt Smriti Iraniji , more than 2 years back

There is a lesson to be learned in the fact that , recently against 3,000 vacancies of " Safai Kamdar ( sweepers ) , in UP , some 7 lakh persons applied ( including thousands of graduates / post graduates )

When India produces some  35 Lakh graduates  EACH YEAR  , why are they not applying for those 10 lakh vacant posts of teachers ?

Hopefully, Shri Pandey will find a answer in my email (which did get a computer generated acknowledgement ! )

He may also want to read  :

*  State  of the  Republic......    (http://myblogepage.blogspot.com/2014/03/state-of-republic.html )

*  Challenge  of Education ...... (  http://hcpreports.blogspot.com/2016/01/challenge-of-education.html  )

*  Dr  BabaSaheb Ambedkar  University...... (http://hcpreports.blogspot.com/2016/01/dr-babasaheb-ambedkar-university.html )

*  Enrollment  of Girls ....(http://hcpreports.blogspot.com/2014/04/enrolment-of-girls-compared-with-boys.html )

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Tuesday, 17 June 2014

Is  Smriti Iraniji  listening ?

Apparently , no one ( or very few ) want to get into teaching

This is obvious from the number of faculty vacancies in  AICTE  approved institutions , as shown below :

          Faculty…………………………………… Teachers Required…….  % age Vacancy

·                  Applied Arts & Crafts……………………….  2,678…………………….. 56

·                  Architecture and Town Planning………11,762…………………….. 51

·                  Engineering & Technology……………..5,29,543……………………..28

·                  Hotel Mgmt & Catering………………………..3245……………………… 43

·                  Management……………………………………….61,610……………………..27

·                  MCA…………………………………………………..  26,714……………………. 15

·                  Pharmacy…………………………………………….31,421……………………. 20

Why such a poor state of affairs  ?

According to leading Educationists , some of the reasons are  :

·                  Poor salaries in teaching profession

·                  Stringent Quality Norms

·                  Archaic Service Conditions

·                  Little scope to earn thru consultancy

·                  Very little Industry-Interaction / Internship

·                  Poor Research facilities

Even as Smritiji starts up a dialogue among the Stakeholders ( Students / Teachers / Educationists / Administrators etc ) , in respect of formulation of a NEW EDUCATION POLICY ,  she would do well to frame an ONLINE QUESTIONNAIRE ( Yes / No : True / False : Multiple Choice ) and upload it on her Web site for people to participate in thousands

What is wrong with our current state of Education and what needs to be done to fix it , can only emerge from such a  REFERUNDUM

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22  Aug  2016

www.hemenparekh.in / blogs

A Rickshaw by any other Name ?

Not according to The Road Transport and Highways Ministry !

They have just issued the following " Guidelines " ( to State Transport Authorities ) , in respect of E-Rickshaws :

#  Speed Limit / Carrying Capacity / Body Specifications

The Road Ministry is also in the process of finalizing the Safety Norms for these " Battery Operated " light vehicles , while allowing them to operate under the Motor Vehicles Act , even as some 4 million E-Rickshaws are already operating in the country !

I suppose , the Ministry will come up with different sets of " Guidelines " for Rickshaws whose prime movers ( the driving force ) are :

#  Ethanol ( I believe , Diesel / Kerosene Engine based rickshaws , are covered by Petrol Engine based rickshaws )

#  Hydrogen based hi-breed Engines ( coupled with Petrol / Kerosene / Diesel / Electric engines )

#  Compressed Air powered Engine / Methane gas powered Engines

#  Other prime movers that I cannot think of right now !

Now , we are all familiar with Human-Power driven rickshaws ( basically a bicycle pedaled by a human and having a comfortable seat at the back for two passengers )

If the front wheel of such an H-Rickshaw ( H for " Human Engine " ? ) were to be replaced by  GeoOrbital  Front Wheel , then it will be some kind of a hi-breed between H and E  !  A H/E - Rickshaw  ?

GeoOrbital  ( www.Geoo.com ) front wheel has a built-in battery , giving a range of 50 miles , with a bit of pedaling

And it will dramatically reduce the effort required by the peddler , while enabling him to earn more ( and with less effort ) by making many more passenger-trips in a working day !

Instead of worrying about , yet another set of " Guidelines " for H/E-Rickshaws , it would be nice if the Road Ministry were to come out with a ,

POLICY  STATEMENT  for  H/E - Rickshaws , which reads :

"  All those unemployed who wish to wish to become Self Employed through owning / operating , a H/E-Rickshaw , will get interest free MUDRA loans for the purchase of such hi-breed vehicles , whose front wheel is a GeoOrbital wheel "

BENEFITS :

#  Huge potential for creating millions of Self Employed

#  Minimum Capital Investment ( probably less than a Motor Bike )

#  H/E-Rickshaws can be , even turned into " Rickshaw Share Taxi " Scheme , enabling a small family of 3 , to

    ride such a rickshaw within a city , by picking it up from one " Parking " place and leave it at another !

   { Husband will get that much needed exercise and improve his health ! )

#  By equipping HE-Rickshaws with GPS enabled Digi-Met(Digital Meter),fare can be paid thru Mobile Wallet (NFC )

#  Traffic congestion and Vehicular pollution will reduce dramatically !

#  Dependence on fossil fuels will reduce

Had Shri Akhilesh Yadav , CM- UP , offered all those 7 lakh UNEMPLOYED who recently applied against 3000 vacancies of " Safai Kamdar " ( Sweepers ) in Kanpur , a hi-breed H/E-Rickshaw , ( of course ,  Free of Cost ! ) , then , he would have guaranteed himself , a re-election in the forthcoming State elections , while claiming credit for achieving the National Electric Mobility Mission Plan, by 2017 ( against the Road Ministry target of 6 million electric vehicles on roads , by 2020 ) !

May be , Shri Nitin Gadkariji would want to seize the opportunity that Shri Yadav , missed !

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21  Aug  2016

www.hemenparekh.in / blogs