Do Not Stop Here !

DNAINDIA website carried following report on 01 Dec 2016 :

"  Government wants Aadhar-enabled Payments to replace cards "

The report goes on to read :

------------------------------------------------------------------------------------------------------

The Unique Identification Authority of India has planned to increase biometric authentication capacity through Aadhaar to 40 crore a day from 10 crore to encourage more use of the platform for realising a cashless society.

The government is concurrently working on developing a common mobile phone app that can be used by shopkeepers and merchants for receiving Aadhaar-enabled payments bypassing credit and debit cards, pin and password.

Through this mobile application, the handset will be used for authenticating biometrics of customers making Aadhaar enabled payment.

Shri Ajay Bhushan ( CEO - UIDAI ) explained that these biometric authentications include attendance marked by employees of government establishments.

{ This was suggested in my blog / email : From BAD toMAD : dt 01 June 2016 }

{  http://myblogepage.blogspot.in/2016/06/from-bad-to-mad.html  }

The 12-digit number has already been issued to 1.08 crore people and 99 per cent of adults have been covered.

People can link their Aadhaar with their bank accounts and use Aadhaar Enabled Payment System (AEPS) for funds transfer, balance enquiry, cash deposits or withdrawals and inter-banking transactions.

AEPS allows users to make payments to merchants or shopkeepers without credit or debit cards using their Aadhaar number and biometric authentication.

They just need to quote Aadhaar and authenticate it through biometrics. The money is directly transferred from the customer's bank account to the merchant's. Subscribers of 118 public and private banks can use AEPS at present.

NITI Aayog CEO Amitabh Kant said the government is working on incentivising cashless transactions and disincentivising cash transactions.

"We are asking mobile manufacturers to see if all mobiles made in India should be in-built with iris or thumb identification system to help Aadhaar-enabled transactions," Kant said.

Kant is part of the chief ministers committee that will lay out a road map for implementation of digital payments over the next one year. The first meeting is scheduled today.

IT Secretary Aruna Sundarajan said the ministry has kept aside Rs 100 crore to incentivise enrolment of merchants on to the digital platform to help push the drive.

"IT department is providing incentive of Rs 100 for every merchant enrolled through over two lakh common service centres across India. The ministry will undertake a major outreach communication campaign starting from Monday," she said.

-------------------------------------------------------------------------------------------------------

This is one more proof that Ministers / Secretaries of NDA government , not only read every suggestion received from ordinary citizens , but also implement the same , if found good - and double-quick too !

PROOF :

In my email to Ministers / Secretaries ( dt 27 Nov 2016 ) , I suggested as follows :

-------------------------------------------------------------------------------------------------------

Dear Shri Amitabh Kant :

There is no doubt , you will encourage PRIVATE SECTOR players to launch Mobile Wallet apps

But you have this opportunity to SIMPLIFY the use of Mobile Wallet Apps - the use , which appears " daunting " to rural folks

Here is how :

*  Based on UPI / Indiastack , come out ( in next 6 days ? ) , with M-Rup ( RuPay based 

   mobile app , linked to Jan Dhan A/c and to Aadhar Biometric verification of the user )

*  Citizen can download M-Rup ( whether on Smart phone or on feature phone ) ,from

   Google App store 

*  M-Rup can be activated only after user enters his Jan Dhan A/c number / his Aadhar

   Card number and his Mobile number , in the App

   

*  At the time of " Activation ", let the M-Rup wallet get filled up with Rs 100 ( as a freebie )

*  This initial loading of M-Rup with Rs 100, to happen, even if the user has no Jan Dhan a/c

*  This initial loading will enable the users to " experiment " transferring or receiving digital

   money ( even between friends , none of whom have Jan Dhan accounts !). Make it FUN !

I am sure , you will say :

" How does this make M-Rup any DIFFERENT from any other Mobile Wallet app ?  

  Where is that SIMLIFICATION of use ? "

  

Dear Shri Amitabh :

Like you ( and of course , Shri Modiji ) , I have a great faith in the ability of Indian software engineers ( local or NRI ) to come up with revolutionary solutions / innovations !

Just ask Sundar Pichai , Sam Pitroda , Satya Nadela , Sachin Katti , Pranav Mistry , Sanjay Sarma , Nandan Nilekani etc , if they will help implement the following :

*  Buyer  buys something worth Rs 100 from a shopkeeper

*  Buyer and the Seller , look into their own mobile-cameras ( of  smart phones

   loaded with M-Rup ) for biometric Aadhar identification / linked to Jan Dhan a/c 

*  Seller speaks in his mobile : " Muze Sau Rupiah dedo "

*  Buyer speaks in his mobile : " Inko Sau Rupiah dedo "

*  Message flashes in the mobile screen of Seller : " Tumhare account-me Sau Rupiah

   Jamah ho gaya / GST bhi kaat ke Sarkar-ko bhej diya "

*  Message flashes in the mobile screen of Buyer : " Tumhare account-se , Sau Rupiah inko

   Bhej Diya . Abhi balance me teen sau sath rupiah bacha hai "

I request all concerned , not to insult our engineers / scientists / geeks , by doubting if such SIMPLIFICATION ( based on day to day spoken language ) is possible

Doubting Thomas may want to look up ... PILOT   

{  http://www.waverlylabs.com/  }

This is the only way rural India can bypass the Jurassic Age of Plastic Cards to usher into a CASH-LESS society !

-------------------------------------------------------------------------------------------------------

Dear  Shri  Amitabh  Kant  :

While congratulating you - and your entire team of dedicated professionals - I request you , not to stop with launch of AEPS mobile app

Please, do come up with a version which enables millions of not-so-savvy Indians to just give a " Voice based Instructions " to AEPS app , for all of their Digital Payment transactions, in language of their choice

-------------------------------------------------------------------------------------------------------

02  Dec  2016

www.hemenparekh.in / blogs

Automation is Inescapable

In 1952 , American technocrat / visionary , John Diebold wrote a book titled :

  AUTOMATION

Since then , it has remained some kind of a " Bible " for enthusiasts of automation ( - that includes , me ! )

Fast forward to 2016 ( 64 years later )

A few days back , here is what the World Bank President , Jim Yong Kim said ;

-----------------------------------------------------------------------------------------

"  In large parts of Africa , it is likely that technology could fundamentally disrupt this pattern .

Research based on World Bank data has predicted that the proportion of jobs threatened in India by automation is 69 % , in China it is 77 % and in Ethiopia the percentage of jobs threatened by automation is 85 %

Now , if this is true , and if these countries are going to lose those many jobs , we have to understand what paths to economic growth will be available for these countries and then adapt our approach to infrastructure accordingly

Mechanization and technology have disrupted traditional industrial production, upended manual jobs and call time on the work that has been done by generations of families

This trend is not isolated to the US . It is affecting people in countries everywhere  "

-----------------------------------------------------------------------------------------

QUESTION :

NDA government is trying hard to raise share of Manufacturing in our GDP , from current 16 % to 25 % , as is the case with most developed / industrialized countries

It is hoped that such a transition will enable us to provide jobs to those 12 million youngsters , joining our " Army of Unemployed " , each year

But what if that increase in " Manufacturing " comes about through vastly increased " Automation " ?

In that case , instead of being able to provide jobs to those 12 million , we may end up laying off / retrenching , even those who are currently engaged in " Manufacturing " !

Increased competition forces manufacturers to constantly cut costs

And since , they have very little scope to cut costs of land / machinery / materials / money ( interest ) etc , they focus on ways and means to cut " Labour Costs ( Salaries / Wages ) " - often through replacing humans with automatic machines

And wherever they can , factories are moving out of the cities / countries ( those " high wage islands " ) to areas where labour costs are still low !

POSSIBLE  ANSWERS  :

*   Reduce the " Cost of Money " , through lower Interest Rates to Companies

     (  This is expected to happen soon since the banking system is flush with funds after the

      recent demonetization )

*   Reduce the " Cost of  Land " , by mandating that the farmers providing their lands to

     become " Equity Share Holders " in all new projects ( whether Public Sector or Private

     sector / Infrastructure or Factories )

*   Reduce " Cost of Machineries ", by providing accelerated depreciation for new projects

    This will also spur the demand for Capital Goods, boosting " Manufacturing Employment "

*   Reduce " Cost of Materials ", by reducing GST rates from 18 % to 12 %

*   Reduce " Cost of Manpower " , by raising tax exemption limit to Rs 10 lakh

    By increasing " Consumer Surplus " , this will reduce wage-increase demands

*   Reduce " Cost of Corruption " by eliminating corruption ( embedding RFID chip in notes )

*   Reduce " Cost of Inflation " by limiting  " Annual Wages-Salaries Increases " to 75 % of

    the preceding year's GDP number ( ie: if GDP for 2015, is 8 % , maximum salary / wage

   increase that can be granted on 01 April 2016 , will be 6 % ) . 

This mechanism will set in

   motion , a VIRTUOUS CIRCLE , in reduction of CPI / WPI !

In short , we must make ours, a " Low Cost Economy " as far as " Manufacturing Sector " is concerned

But to save jobs , the above mentioned measures won't suffice !

That would require Indians to compete with the jobseekers around the World - compete with the jobseekers everywhere , in their own countries !

It is going to be a " Dog eat Dog world " where it will be " Survival of the Fittest " !

That would require us to turn India into " Back Factory of the World " described in my following blog ( sent as email to NDA Ministers / Secretaries / MPs / MLAs )

-----------------------------------------------------------------------------------------

Wednesday, 9 September 2015

" BACK FACTORY " OF THE WORLD ?

China is known as the " Factory " of the World 

India is known as the  " Back Office " of the World 

Can India become the " Back Factory " of the World ?

Wrong question !

Right question is : WHEN can we become the " Back Factory " of the World ?

Answer is " hiding in plain sight " !

This week , an astronaut , sitting in a satellite 400 km above the earth and hurtling through space at 16,000 km per hour , operated a robot on the earth

Earlier , scientists sitting in NASA space centre or  in Shri Harikota space centre , have operated Mars Rovers / MOM ( Mars Orbital Mission ) remotely

From a distance of millions of miles

And soon , astronauts  will be sending emails to earthlings from millions of miles away , using " Space Internet " on their Mobile phones 

Invariably , each such team of scientists , comprised Indians !

So , WHEN can our scientists - and software Start Ups - enable Indian workers , sitting in Hyderabad / Chennai etc , to operate / manipulate , machinery in factories of Europe / America / China ?

I believe this can become a reality by 2020 , if Central Government and State Governments , just get out of the way of our scientists / Start Ups and leave them alone !

Then tell them :

-----------------------------------------------------------------------------------------

" You are our next generation of Freedom Fighters . Free our millions from 

poverty / starvation / jobless depression / ignominy / suicides

Like war - ravaged people of North Africa , Indians cannot invade Europe / Australia / Canada , in search of jobs / better life

We depend upon you to bring the jobs to India - jobs such as ,

  *   Operating Machinery in Factories abroad

  *   Controlling Air Traffic at Airports around the World

  *   Operating upon patients in Hospitals , all over

  *   Teaching students in Schools , in remote Africa

  *   Any job that currently requires immediate presence of a worker

And , if you set up a " Back Factory " , you don't need to pay Corporate Income Tax for next 10 years !

Simply register on web site of Income Tax Department as a " Back Factory " owner and file annual " Zero Corporate Tax Return "

------------------------------------------------------------------------------------------------------

When this happens , 

*  Millions of skilled Indian workers will operate factories around the World , 

    sitting in , internet connected " Back Factories " in small Indian towns

*  Foxcon will not need to replace its high-wage Chinese workers with one 

    million robots ( as officially announced sometime back )

    At half the wages of those Chinese workers , Indians will operate Foxcon

    factories , all over the World , remotely !

*  " Contract Labour Act " will need to be replaced with " Back Factory " Act 

*  " Minimum Wages Act " will need to be scrapped !

*   India will not need to fight with WTO on " Manpower / Service Exports " 

*   " Make in India " will morph into " Make from India " 

I hope NDA Ministers and members of NITI Aayog will ask , Narayan Murthy / Sam Pitroda / Azim Premji / Sundar Pichai / Satya Nadela / Ray Kurzweil etc :

"  How soon can this be done ?  How can you help ?  "

-----------------------------------------------------------------------------------------

01  Dec  2016

www.hemenparekh.in / blogs

C(l)auses of Corruption ?

Mumbai Mirror ( 21 Nov 2016 ) , carries a news report , titled :

"  State to drop cost escalation clause from govt contracts "

Parts of this report read :

-----------------------------------------------------------------------------------------

The state will soon remove cost escalation as a clause from all government contracts to curb corruption and prevent wastage of taxpayers’ money.

Contractors are notorious for submitting a lower cost estimate for an infrastructure project and later demanding additional funds to complete the work. They misuse the clause and bribe government officials to get the extra payments cleared, activists allege.

Chief secretary Swadheen Kshatriya told Mirror the proposal to strike off the cost escalation provision would be discussed at a meeting this week.

“ We will be taking two decisions. One is to do away with the cost escalation clause and second is to have fixed fees for architects in projects and not let them correlate percentage wise,” he said. “ The escalation clause is the root cause of many problems.”

Some officials are concerned that if the provision is dropped, it may lead to higher initial quotes from contractors.

But Kshatriya said: “Let them be higher at one point, but later there should not be a problem. There has to be a concept of total cost.

Nearly four decades of experience has shown that escalated prices do not give an idea of how much a project will eventually cost. The final quote must give the government a fair idea about the cost.”

Currently, the architect’s fee also goes up if a contractor revises the project budget. The Devendra Fadnavis government wants to delink the two and fix the architect’s charges.

“We are looking to get this cleared soon. The ideas have been discussed in coordination committee of senior secretaries,” Kshatriya said.

Additional chief secretary (finance) DK Jain said the plan was being formalised.

Former IPS officer YP Singh, who has unearthed many scams, welcomed the step.

“The Bandra-Worli Sea Link is a classic case of cost escalation. It was estimated to cost Rs 400 crore, but the MSRDC ended up paying Rs 1,600 crore, including interest. The public is also charged a toll,” he said.

“To finalise an agreement at a certain amount and disburse another amount to the contractor is against the tendering principles.”

The costs of many of the state’s dams also ballooned in what is now known as the irrigation scam.

“The cost escalation policy is a major driver of corruption. Every single contractor delays projects and then jacks up prices, making a farce of the entire the tender process,” Preeti Sharma, national spokesperson of the Aam Admi Party.

Activist Anjali Damania also welcomed the government’s decision, but said it may not be enough as contractors and corrupt bureaucrats would eventually come up with a workaround.

 “A third-party audit by a reputable company or an institute should be mandatory [ for every government contract ],” she said.

-----------------------------------------------------------------------------------------

Dear Shri Devendra Fadnavisji ,

Although my following suggestion ( email )  was sent to  Chief Ministers of all the States , you are the only one to have acted upon it !

While congratulating you - and your team of Secretaries - on this excellent initiative , I request you to also amend the other " Clauses " ( other than escalation clause ) , listed in my email - especially those pertaining to ( willful ? ) delays on part of the concerned officers of the government in granting various permissions / clearances / NOCs ..etc

-----------------------------------------------------------------------------------------

Sunday, 6 July 2014

The Invisible Corruption

WHY  INVISIBLE  ?

Because it is cleverly camouflaged in the " Terms of Contract " that companies sign with Central Government / State Governments / Municipal Corporations / umpteen Government Agencies

This invisible corruption is rampant in Infrastructure Projects that get spread over months / years

And every possible trick / excuse ( officially called " Reasons " ) is used to ensure that these Projects get delayed as much as possible !

Examine carefully and you will find that the more a Project  gets delayed , the more that Contractor stands to gain ! Anyone believing otherwise , has got to be naive  !

HOW  ?

These contracts contain " Cost Escalation Clauses " which decide the extra / additional amounts payable to the Contractor , over and above the ( so called ) " Fixed Price " quoted at the time of tendering

Under these clauses , the Contractor is eligible to claim / demand extra payments , whenever ,

*  SOMETHINGS THAT  HAPPEN 

   #   costs of certain " Inputs " go up above a certain agreed level , eg :

    *    Prices of Raw Materials

    *    Prices of Water / Gas / Electricity

    *    Cost of Labor

    *    Foreign Exchange Rate

    *    Consumer Price Index

    *    Interest Rate

    If any of these go up above certain agreed levels , the quoted price to go up by X / Y / Z amount , as per the Formula which determines the % age contribution of these elements , in the quoted price

*  SOMETHINGS  THAT  DO  NOT  HAPPEN

   *    Environment Clearance for the Project

   *    Land acquisition and Handover to Contractor

   *    Hundreds of permissions from dozens of Govt Depts/Muni Corporations

   *    Issue of Import Licenses

   *    Release of Foreign Exchange

   *    Issue of NOC from umpteen departments

   *    Issue of Compliance Certificates from various departments

   *    Approval of Designs / Design Change Requests ( from Govt as well )

   

If any of these are NOT issued / given by certain " Dates "  ( very easily managed  !  ) , then the quoted price to go up by X / Y / Z  amount

Invariably , these clauses are heavily  tilted in favor of the Contractor

And equally invariably , colluding Government officers / bureaucrats / politicians , responsible for drafting / approving these " Clauses " , leave them vague !

This is apart from framing the Tender Specifications in such a manner that only a certain preferred bidder will qualify !

If you doubt what I have said , then just file a RTI application , asking for a copy of,

*  Original Tender Document

*  Final Contract

*  Number of Price Revision Requests received / granted

for any project of your choice  !

If Shri Narendra Modi is keen to reduce corruption , he should start by instituting

MODEL  INFRASTRUCTURE  PROJECT  CONTRACT ,

which clearly spells out what price / time revisions can be granted and when

At the same time , internally , there must be a provision for DEMOTION / PENALTY for those officers who fail to give permissions / approvals / NOC etc, by specified dates ( milestones for the project )

-----------------------------------------------------------------------------------------

01  Dec  2016

www.hemenparekh.in / blogs