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

Friday, 10 February 2017

Welcome ! Elon Musk



And just in time , too !

Business Standard  ( 09 Feb 2017 ) carries a news report with headline :

“ Tesla plans to drive into India this summer “


It reads :


Silicon Valley-based electric carmaker Tesla is mulling to enter the Indian market this summer


“Hoping for summer this year,” said Elon Musk, chief executive officer, Tesla, to a query on Twitter about when the company planned to come to India.


Tesla began taking orders for its Model 3 sedan, priced at $35,000 ( about Rs 25 lakh ), from customers in the country in April last year.


Musk’s tweet, however, didn’t provide any detail


During Prime Minister Narendra Modi’s visit to Silicon Valley in September 2015, he took a tour of Tesla’s plant and met with Musk to discuss the use of renewable energy in India’s hinterland.


The cost of storing energy produced from sources such as solar and wind is still far too expensive. Musk has been an advocate of lowering costs through mass production.


Soon after, in October that year, Musk hinted that India would be a great manufacturing base for the lithium-ion batteries that power Tesla’s cars and its  Powerwall energy storage units.


{ Last week, a 20 MW Powerwall Substation got set up in California in just 98 days , capable of supplying surplus stored GRID power to 1500 homes, round the clock ! }


“Given the high local demand, a Gigafactory ( extremely large lithium-ion cell manufacturing unit ) in India would probably make sense in the long term,” Musk had tweeted.


Even at the Centre, subsidies for electric vehicles to boost sales across the country have been rolled out under the National Electric Mobility Mission Plan.

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


WHY  IS  ELON  MUSK  INTERESTED  IN  INDIA  ?


Because,

·         Globally , India is the 2nd largest 2 wheeler manufacturer / 6th largest car manufacturer / 8th largest commercial vehicle manufacturer

·         India produces 24 million vehicles / year  and employs 29 million people

·         31% of the small cars sold globally are made in India

·         Auto Industry contributes 7.1 % of India’s GDP

·         100 % FDI is permitted through automatic route

·         Under , Automobile Mission Plan ( 2016-26 ) , India plans to be among the TOP THREE in the World, with revenues rising to $ 300 billion , from current $ 72 billion

·         Current vehicle population in India , is 200 million ( entirely Petrol or Diesel )

·         India wants to  replace ALL of these  with Electric Vehicles by 2030, which works out to 14.3 million / year , even as 24 million petrol / diesel vehicles will continue to be manufactured every year !



WHY  SHOULD  INDIA  BE  INTERESTED  IN  TESLA  ?


·         Tesla is the world leader in Electric Car manufacture

·         It has set up a GIGA-FACTORY to manufacture Li-on batteries

·         Li-on batteries are also used for storing Solar Power electricity

·         Tesla has set up 795 Supercharging stations at malls and highways , all over the World , and charges Tesla car-owners , mere $ 120 for a travel of 3000 miles from LA to New York !

·         In a few months, Tesla starts mass production of Model 3 and plan to produce 500,000 cars in 2018

·         If India cannot persuade Elon Musk to set up manufacturing in India , any number of other countries are chasing him !

·         Tesla is about to come out with an all-electric Semi-Truck , which could be of great interest to India for replacing some 10 million , 15+ year old ( petrol / diesel ) trucks , under just approved Voluntary Vehicle Retirement Policy

These vehicles consume 70 % of country’s diesel

Replacing these with electric vehicle ( rather than with another new diesel vehicle ), could not only reduce pollution drastically but also save crores of rupees !


            

WHAT  ARE  THE  ADVANTAGES  OF  ELECTRIC  CARS  ?


·         Electric cars are non-polluting ( no harmful emission gases ) and help reduce green-house effect

·         Will reduce deaths due to elimination of outdoor pollution

·         An electric car is 5 TIMES more energy efficient as compared to Petrol car ( energy conversion efficiency of up to 99.99 % )

·         An electric car is 10 TIMES cheaper to charge, with annual cost of $ 313 ( as compared to petrol cost of approx. $ 3000 for 12000 miles – USA figures )

·         Since it has only 20 moving parts as compared to 2000 moving parts for a petrol car, an electric vehicle is 10 TIMES cheaper to maintain

·         It is possible to charge an electric car Li-on battery wirelessly , using “ Induction Power Transfer ( IPT ) “ . In Italy , electric buses are already being charged at BUS STOPS , while passengers get off and on !

·         Wireless Charging essentially untethers an electric vehicle . Because they are replenished many times a day ( at each Bus Stop ), they can use a smaller battery

·         Li-on batteries of electric cars can be used to store electricity generated by Solar Power installations , and can contribute to Grid Storage .

          A recent report by the California Public Utilities Commission concluded that EV
          owners could be paid up to $ 100 PER MONTH , for providing electricity to the
          Grid infrastructure

·         Essentially , an electric car is a “ Computer on Wheels

It is integrated with a huge number of sensors and sensor-enabled devices

Not only all electric cars are connected through internet, with servers of the manufacturer but also with all the other electric cars, manufactured by the same manufacturer

This “ connected-ness “ ( Internet of Things ) enables them to compile , and relay ( or receive ) , in real time , data re :

#   GPS tracking

#   Speed Monitoring and Control

#   Fall Detection

#   Remote Battery Power Sensing

#   Tracking

#   Scheduling Maintenance

#   Road Infrastructure

#   Traffic Density / Pattern / Movement

#   Vehicle Behaviour / Speeding  /  Accidents

#   Wear and Tear


All of this continuously streaming data becomes an invaluable input for manual and automated decision-making by agencies such as :


#   Manufacturers / Maintenance Garages / Repair Shops

#   Car Rental Agencies / Share-a-car  Taxi services / Other cars on roads

#   Insurance Companies / Banks  

#   Road Transport Authorities / Road Maintenance Authorities

#   Traffic Police Departments

#   Pollution Control Authorities

#   Municipalities

     Today , Mumbai Municipality announced the end of FREE parking on the roads
     and introduced hefty monthly fees payable by car owners

     City of Mumbai has 30 lakh vehicles and road-length of 2000 km ( 1500
     Vehicles / km ) . These include 17 lakh 2 wheelers and 9 lakh cars

     Imagine the nightmare of determining : “ Who “ parks “ Where / When “ and

     should pay  “ What Amount “ and “ How “  !

    

     If all these vehicles were electric, money would pour into Municipal Bank
     Account  ( 24*7 ) , using Aadhar Enabled Payment System , through pre-
     paid RFID chips built into those vehicles !

    This will help us eliminate “ human intervention “ from “ Collection Process “


·         Electric cars are “ future proof “ in the sense that , they can be made autonomous or ( someday ) even “ flying “ !

If energy conversion efficiency of Solar PV panels can be increased to 40 % as compared to current rate of 18 % , it is even possible that cars fitted with such panels may not need any charging stations ! ( Remember , Tesla’s Solar Roofing tiles to power homes ? )

·         Electric cars make very little noise hence reduce noise pollution

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

  

WHAT  ABOUT  DRIVING  RANGE  PER  CHARGE  OF  ELECTRIC   CARS  ?

·         A range of 200 miles ( 320 km ) per charge might be the minimum requirement of an electric car today

·         An average American car runs only 58 miles ( 93 km ) per day

·         Nissan Leaf has a range of 75 miles ( 120 km ) per charge

·         Tesla Model S has a range of 265 miles ( 426 km ) per charge with a 85 kwh battery, which can be charged up to 80 % ( 250 miles ) in 15 minutes

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


WHAT  ABOUT  THE  COST  OF  THE Li-on BATTERY  ?


·         In 2010 , EV quality Li-on battery cost about $ 1,000 / kwh

·         Tesla Roadster had a 53 kwh battery which cost $ 53,000 , about half the total cost of the car

·         Battery costs are dropping at about 12 % per year

·         Current cost of Tesla’s battery is estimated at $ 100 / kwh  !

·         In Tesla Model S (selling for $ 35,000 ), battery is costing only $ 5,000  !

·         By 2025 , Tesla expects to bring down battery cost under $ 50 / kwh and selling price of Tesla Model S ( equivalent model ) to $ 17,000 ( approx. Rs 12 lakhs ) !

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



WILL  FUTURE  BATTERY  TECHNOLOGY  OBSOLETE  Li-on  BATTERY  ?

·         Have no doubt !

     Venkataraman Thangadurai and colleagues ( University of Calgary / Canada )
     have developed a rechargeable , button-sized battery

Thangadurai  says :

“ The technology we have developed would enable absolutely stable, robust, safe, high-powered, all solid state lithium batteries for future energy storage , which have many potential applications , including charging of electric vehicles

And then there is Israeli firm  Stores-Dot , which claims to be developing a car battery  that can be charged in 5 minutes and give a range of 300 miles

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




HOW  WILL TESLA  ENTRY  AFFECT  INDIAN  AUTO  INDUSTRY  ?


·         If Tesla merely wants to sell their US – made cars to India , it won’t make much of a difference to existing Indian Car Manufacturers

But, if it sets up fully integrated manufacturing operations ( including sourcing of components locally ) , then that could “ disrupt “ the Auto Industry !

From there, it is one small step to “ disrupt “ the Indian Bicycle Industry

Here is how :  “  A Radical  Radial  Revolution


That would dramatically speed up the change-over to electric car models by all the existing manufacturers – which would be , an extremely desirable for the Indian Economy as a whole

Welcome  !  Elon  Musk 


11  Feb  2017







Thursday, 9 February 2017

Internet of Humans { IoH } ?


A report ( Daily Mail / Feb 08 , 2017  ) reads :

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

In a move that could be lifted straight from science fiction, workers at a Belgian marketing firm are being offered the chance to have microchips implanted in their bodies


The chips contain personal information and provide access to the company's IT systems and headquarters, replacing existing ID cards.
  

The controversial devices raise questions about personal security and safety, including whether they may allow the movements of people with implants to be tracked. 


NewFusion, a marketing firm in Belgium, is offering the chip to its employees.  
The radio-frequency identification ( RFID ) chips are about the same size as a grain of rice and store personal security information which can be transmitted over short distances to special receivers.


RFID chips can already be found in contactless cards, including banks cards and the Oyster system which is used by more than 10 million people to pay for public transport in London.


They are also similar to the chips implanted in pets. 


The ones used at NewFusion cost around €100 each (£85 or $106) and are inserted between the thumb and index finger.


A growing number of people and businesses are choosing to adopt the practice, known as bio hacking.


Implant kits can be bought online, and include a sterile injector with a pre-loaded chip and gauze for wound care.


The chips can be used for a range of applications, from allowing access to properties to logging into computers or even starting motor vehicles.


It is believed there are 10,000 people across the world using the microchip technology inside their bodies.


NewFusion is not the first company to offer RFID implants to its staff.
In 2015, a Swedish company implanted microchips in its staff which allowed them to use the photocopier, open security doors and even pay for their lunch


Hannes  Sjoblad, the chief disruption officer at the Swedish bio-hacking group BioNyfiken, which implanted the chips into the Epicenter workers, told The Times:


 'We already interact with technology all the time.

'Today it's a bit messy - we need pin codes and passwords - wouldn't it be easy to just touch with your hand?


'We want to be able to understand this technology before big corporates and big government come to us and say everyone should get chipped - the tax authority chip, the Google or Facebook chip.' 


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


As far as I can see , Hannes  Sjoblad is going to be disappointed because no government can – or will – impose CHIP IMPLANTS on its citizens


And , if the purpose is simply to register the employees’ attendance AUTOMATICALLY , it would be much easier for a Government to persuade companies to implement ( instead of implant ) :



{ https://myblogepage.blogspot.com/2016/06/from-bad-to-mad.html  }



Not only it is NON-INVASIVE , it is far SIMPLER / FASTER / CHEAPER to implement


All that is needed :

·         Smart phones with built-in Bio Metric device ( Iris scan / Finger Scan etc )
·          
·         A software ( Mobile App )
·          
·         A cloud based network of servers

·          
This reform has the potential to transform India , like nothing else can !


Dear Shri Ravishankar Prasadji :


How about making a beginning with ALL central government departments / establishment ?  May be , a small beginning with our highly disciplined Military ?




10  Feb  2017




Wednesday, 8 February 2017

Level-Playing Field is a Double Edged Sword !



Economic Times ( 09 Feb 2017 ) carries a news report with following headline :

Sachin Bansal seeks level-playing field for local companies 

Details read as follows :



Highlighting the rise of "selective globalisation", Flipkart co-founder Sachin Bansal today said a  LEVEL-PLAYING FIELD  is needed to ensure that local companies can build solutions for the Indian market and don't get "prematurely killed" by foreign competition


"Another big thing that is happening across the world is the rise of anti-globalisation... it was all the time in China and US, selective globalisation rather. I meant there should be LEVEL PLAYING FIELD," Bansal said at the IAMAI India Digital Summit here. 


Bansal has, in the past too, voiced his opinion on supporting Indian companies against 'CAPITAL DUMPING'  by foreign companies. 


"What we need to figure out is how do we create a  LEVEL-PLAYING FIELD.  How do we ensure news app or restaurant apps doesn't get prematurely killed by a company coming from China and just pumping in dollars from there. It should be about technology and appreciation of the product," he said. 


Interestingly, Flipkart -- which is locked in an intense battle for leadership with US-based Amazon in the Indian e-commerce market -- has received over USD 3 billion funding from investors like Tiger Global Management, DST Global, Naspers and Steadview Capital. 


China's e-commerce giant Alibaba -- which has the stake in Indian digital payments and e-tailer Paytm -- is also aggressively looking at tapping into the Indian market.
 

Bansal said it would be a "mistake" if  INTERNET AND TECHNOLOGY  are not considered as a "STRATEGIC SECTOR". 


"...we are making a mistake by not thinking of INTERNET AND TECHNOLOGY a strategic sector and depending too much on China and the US to build that for us... We have the capability, we have the know-how to do this in India ourselves for our markets," he said. 




Voices similar to Bansal’s , are rising all over the World


Voices as powerful as that of Donald Trump who wants :

·         Buy American
·          
·         Hire American
·          
·         Cut legal immigrants by 50 %
·          
·         Double the minimum salary of H1B visa holders
·          
·         Build a wall along US / Mexico border
·          
·         Heavily tax US companies outsourcing work abroad
·          
·         Incentivize US companies ( with 15 % Corporate Tax ) to bring back jobs
·          
·         Heavily tax imports ( under guise of Anti-Dumping ? )…..



People who seek such protection from International Competition do not realize that a “ LEVEL PLAYING FIELD “ envisaged by them , is a DOUBLE-EDGED sword !


It is a game at which “ Two can play “ !


They would do well to read my following blog of 12 June 2016 :



Level Playing Field ?


It just does not exist - so forget about it and make the most of what you have !


For Corporate , it is absurd to demand and for a Government , it is futile to attempt to provide a Level Playing Field



There are no two countries where ALL the resources and the ENTIRE industrial Eco-system , is identical or even closely similar



Inputs for any industry are :



#    
MANPOWER

    *  
Ave age / Education Level / Skills / Work Ethics / Productivity / Working
        Hours / Holidays /  Salaries

    
#    RAW MATERIALS / COMPONENTS AVAILABILITY

    *  
Local vs Imported / Supply Chain / Logistics / Duties & Taxes / Quality


#    
FINANCE / BANK INTEREST RATES

     *  
Equity / Loans / Interest Rates / Collateral / Duration / Terms 



#    
LAND / LOCATION ( of manufacturing unit )

     *  
Availability / Prices / Transport / Availability of Skilled Manpower 



#    
INDUSTRIAL  POLICY ( Central and State Governments )

     *  
Exemptions / Incentives / Restrictions / Inspections / Permissions /
         Compliance


#    
MARKET

     *  
Domestic / Overseas  
  

#    
TECHNOLOGY

     *  
IPR / Patents Regime / Copy-Rights / Home-Grown / Licensing / Royalty 


#    
TAXATION

     *  
High / Low Corporate Income Tax / Capital Gains Tax 


#    
INFRASTRUCTURE

     *  
Internal ( Road-Rail Network / Air-Sea connectivity ) / Warehouses


#  
COMPETITION

     
Monopoly / Oligopoly / Cartels / Fierce & Free competition of many



Now , Industrialists / Businessmen , all over the World , will continue to compare the INDUSTRIAL INPUTS existing in their own country with the following BENCHMARKS :


#  
Most Business Friendly ................................... Ireland


#  
Lowest Corporate Tax...................................... Kuwait ( 0 % )


#   Lowest Hourly Wages ( PPP basis ).................... Bangladesh ( $ 0.25/hr )


#   Highest Working Hours.................................... Mexico ( 42.5 / week )


#   Least Govt mandated paid holidays................... USA     ( Nil )


#   Highest Manpower Productivity......................... Switzerland


#   Lowest Bank Interest Rates.............................  Denmark ( 0.05 % )


#   Demographic Advantage of a Young Population....India 


#   Ease of Introducing unpopular reforms..............  China ( Dictatorship )
 


There is , quite likely , some parameter on which a Country can claim to have distinct advantage over all the other countries


It could have something to do with its Geographical situation / Historical evolution / Political System / Legal Frame-work / Societal Norms etc


It is not possible to replicate advantages of all of these benchmark countries , into any one single country


At the same time , it is very important to keep studying these Benchmarks and ask ourselves :


"  How have these countries managed to reach , where they are ?


   What REFORMS can we introduce in our own system to catch-up ?


   Are there any parameters in which we ourselves are a Benchmark to others ?


   What should we do so that we do not slip-up where we are ourselves , some


   kind of a Benchmark , to the rest of the World ? 


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

09  Feb  2017


www.hemenparekh.in / blogs