Who Will Create Jobs ?

Certainly , not BIG companies !

Here is the proof :

Economic Times ( 03 Nov ) carries following news report :

“ Big Cos Not So Big On Job Creation “

For instance, the gross block of top 10 large companies, such as L&T, BHEL and Indian Oil, rose 8.6 % a year since 2008 , but headcount increased at just 0.5 %  a year

The average manpower growth at Manufacturing companies included in the BSE 500 was 2.88 % a year , with more additions at smaller companies

To validate , just take any BIG company’s Annual Report

Find out

( A )…… “ No of Employees “

( B )…" Total Capital ( Fixed + Working ) Employed “

Divide….. B / A

You will come up with a figure of Rs ONE CRORE or more !

India adds ONE MILLION ( 10 lakh ) persons per month to its workforce  ( 12 Million / year )

Let us “ desire “ that , out of this 10 lakh , BIG companies should provide jobs to just 1 lakh persons

That means , BIG companies would need to put in Rs ONE lakh*crore worth of CAPITAL ( Fixed + Working ) , EVERY MONTH !

Even if market demand keeps GROWING for their “ Products / Services “ [ month after month ] , who has that kind of money ?  (  Remember , even the fastest growing markets for  any product / service is no more than 1 % per month ! )

And putting up large / organized sector businesses , take years – especially , factories !

So , what should be the government’s focus as far as job creation is concerned ?

It should be “ Self Employed “ sector , at the “ Bottom of the Pyramid “ !

Obviously , it is not practical to increase the number of “ Licensed Hawkers “ in Mumbai , from ONE LAKH to TEN LAKH , without bringing all traffic ( pedestrian and vehicular ), to a complete stop

But we must find a way to enable ONE MILLION ( 10 lakh ) flat / hut owners to carry on business from their homes / residences , by simply registering as “ Self Employed from Home “ ,  as long as such business / industry / service is non-hazardous ( air pollution – noise pollution – chemical effluent – explosives – harmful radiation – vending of banned items – delivering of banned services etc )

To understand why , read :

HowMuch Capital Required to Create One Job ?

https://myblogepage.blogspot.com/2017/06/how-much-capital-to-create-one-job.html

CapitalGoods Policy : Some Questions 

https://myblogepage.blogspot.com/2016/05/capital-goods-policy-some-questions.html

Start-UpEco-Systems / USA vs INDIA 

https://myblogepage.blogspot.com/2015/10/start-up-eco-systems-usa-vs-india.html

 

A NEWECONOMIC ORDER ? aka " Start Up Act - 2015 "

 https://myblogepage.blogspot.com/2015/09/a-new-economic-order.html

 

Any other approach is “ Bakwaas “  !

05  Nov  2017

www.hemenparekh.in / blogs

#SolarCooker

Solar  Chula  ?  Some  Unanswered  Questions

Today’s news-papers carry following big advertisement from ONGC :

Design , Innovate & Create

Solar Chula to fuel every Indian Kitchen – An initiative for Startup India

In line with Prime Minister Narendra Modi’s vision to promote solar energy, all entrepreneurs, scientists and researchers are invited to come up with innovative ideas to design and develop “ Solar Chula

“

TIME FRAME

Interested applicants may please register on or before 1^st December 2017 at the below mentioned web site 

( For details log on to : https://startup.ongc.co.in )

SUCCESSFUL INNOVATORS

On successful demonstration and testing of performance of a few units , about 1000 units may be initially procured for demonstration in different regions

Financial support may be provided for fabrication of 1000 units

CASH AWARDS for TOP 3 DESIGNS

1^st >  Rs 10 lakh ………….  2^nd >  Rs  5  lakh ……………. 3^rd >  Rs  3  lakh

UN-ANSWERED  QUESTIONS  :

·         On the web site mentioned above , there was no “ Registration Form “ !

·         Nowhere on the web site , there are any SPECIFICATIONS , against which ONGC will carry out those “ Performance Tests “ to decide “ Successful Demonstration “

Eg :

For Google Lunar X-PRIZE ( of $ 30 million ) , its web site lays down clear / unambiguous / precise “ Specifications “ as follows :

     #  SUCCESSFULLY PLACE A SPACECRAFT ON THE MOON’S SURFACE

# TRAVEL 500 METERS

#  TRANSMIT HIGH-DEFINITION VIDEO AND IMAGES BACK TO EARTH

 

In total absence of any SPECIFICATIONS , will this ( ONGC ) expensive / time – effort consuming exercise boil down to , “ It is MY word against YOURs “ ?

 

·         In India , solar chulhas have been tried extensively for over 30 years ( - and finally given up ) , due to a total lack of understanding of the needs of an Indian housewife !

 

          Solar chulhas of old consisted of nothing more than a metal box ( mostly

          aluminium ) inside which , lady of the house placed raw food ingredients in some

          utensils , and then left the box on the terrace to absorb the sun light

         Occasional designs had concave metal tops for concentrating sun light

 

         Entire process of cooking ( a small meal ) took 3 HOURS – even  if the lady kept

         rotating the box frequently as the sun climbed in the sky. Just sit on the terrace  !

         

        And for that evening meal , there was no sun after 6 pm !

 

        Even 30 years ago , housewife did not have 3 HOURS to cook a meal !

       Today’s working housewife has no more than 30 MINUTES for that job – even in

       rural areas !

 

       That means , she needs a high-level CONCENTRATED burst of energy for cooking

       That is why , she prefers GAS / ELECTRIC stove. Even a kerosene stove will do !

 

       Hence , the SPECIFICATIONS  for Solar Chulhas would need to be :

 

      #  Chulha should be capable of cooking a meal for 4 persons ( will need to sharply

         define “ MEAL “ ) , in 30 minutes , solely drawing its power from a SOLAR POWER

         STORAGE device , which collects / stores solar power , from solar panels mounted

         on the terrace / roof top . Solar Storage Device should have adequate storage

         capacity for cooking 2 meals before needing re-charge and should be capable of

         being re-charged from standard 210 V / 5 Amp domestic electric outlet

 

     #  Chulha should be of XYZ dimensions , for easy accommodation inside a kitchen

 

     #  Chulha should not cost more than Rs 10,000 / - to manufacture ( which would be

         excluding the cost of SOLAR POWER STORAGE device )

 

     #  ONGC will not have any IPR ( Intellectual Property Right ) for the winning designs

        , which will vest in the INNOVATOR . However , the innovator would be required to

        license any party / person for the manufacture , without any licence fee / royalty

 

I am sure , ONGC can come up with some better / precise specifications – and SOON !

Those who have any doubts as to the URGENT NEED for a Solar Chulha , please read :

 

SAVINGTHE CURRENT GENERATION  [  10  Dec  2015  ]

https://myblogepage.blogspot.com/2015/12/saving-current-generation.html

04  Nov  2017

www.hemenparekh.in / blogs

 

 

 

 

 

Aadhar Type Identity for Businesses ?

Times of India ( 18 Sept ) carried following news report :

Govt plans to make PAN , the biz Aadhar for Cos , NGOs “

“ The ministry had discussed various options including development of an Aadhar type identity for businesses, an idea which was also discussed with the Information Technology Ministry . But it has now opted for PAN .

A few years ago , the government had decided to treat PAN as the unique identification number for businesses , instead of generating multiple numbers for Provident Fund, tax and labour-law related compliances “

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

Read this with the following that Shri Amitabh Kant ( CEO – NITI Aayog ) wrote in Times of India ( 02 Nov ) :

How to Break Into The Top 50

What does India need to do improve its position in these parameters and break into the top 50 in the next two years? 

Despite important reforms in starting a business India continues to be ranked poorly because other countries have reformed faster.

India's rank can benefit from further integrating registration processes into a single form by converging GST with PAN-TAN registration, integrating EPFO and ESIC and also shops and establishment registration processes.

It also needs business process re-engineering to reduce the propensity to inspect by switching to real time registration and a culture of risk-based verifications

This requires cutting layers of bureaucracy .

 

I have no doubt that , India can “ break into the TOP 50 “ , if businesses do not need to register repeatedly and obtain umpteen REGISTRATION  NUMBERS , listed in my following blog

Tuesday, 11 July 2017

GSTIN on Sign Boards ? How about other 16 ?

Business Line ( 11 July ) carries following report :

Businesses must display GSTIN on sign boards

Traders and businesses will have to display the GST registration number on their business sign boards and the registration certificate in their premises.

 “Every taxable person is required to display his GSTIN number on name board or sign board of business and is also required to display his registration certificate in business premises so that a citizen can easily find out whether a person is registered or not,” a tax official said.

The Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit number which taxpayers get after registering with the GST network portal.

Just wait till those other concerned “ Government Authorities “ enact laws that require you to display on your business sign board , following numbers as well !

#   Corporate Identity Number...........................................   ( 21 digits )

#   Tax-payer Identification Number for commercial taxes......  ( 11 digits )

#   Service Tax Number...... ( Alpha-Numeric ) ....................  (  15 digits )

#   Permanent Account Number - PAN  ( Alpha-Numeric )........ (  10 digits )

#   Central Excise Number..................................... ( PAN + 2 Characters )

#   Provident Fund Number .................( Alpha-Numeric )...... (  11 digits  )

#   Profession Tax Registration Certificate ( Numeric )...............  ( 9 digits )

#   Profession tax Enrollment Certificate    ( Numeric ).............    ( 9 digits )

#   Income tax Deduction/Calculation Number ( Alpha-Numeric ) ( 10 digits )

#   ESIC Number ( Numeric )................................................  ( 17 digits )

#   Labour Department Registration(State specific alphanumeric) (13 digits )

#   Importer-Exporter Code  ( Numeric )................................. ( 10 digits )

#   Shops/Establishment Reg Number ( alphanumeric )............  ( 20 digits )

#   Contract Labour Registration ( alphanumeric ).................. ( 15+ digits )

#   Labour Welfare Board ( Numeric ).....................................   ( 5 digits )

#   Higher Court Case Number ( Alphanumeric ).....................   ( 12 digits )

Dear Shri  Jaitleyji :

I urge you to consider :

An Aadhar  for  Corpotates  (  12  May  2016  )

https://myblogepage.blogspot.com/2016/05/an-aadhar-for-corporate.html

03  Nov  2017

www.hemenparekh.in / blogs

Anomaly by Oversight ?

Surely , it cannot be by design !

I am talking of GST rate of 28 % on imported Lithium-ion batteries required for electric vehicles , whereas GST rate on finished EV is fixed @ 12 % !

Consider this “ anomaly “ in the following background :

·         Li-ion batteries make up almost 50 % of the Selling Price of a EV . This means , the battery cost in those 10,000 Electric Cars which EESL ordered last month on TATA / M&M , for Rs 11 lakh each , would be approx. Rs 5.5 lakh !

·         If GST on these imported batteries was reduced to 12 % , the cost of manufacture of EV , would come down by Rs 0.70 lakh .

·         Then @ 12 GST on finished car , price to EESL could have come down by another Rs 8,000 per car , taking the total saving to EESL of Rs 78,000 per car

·         According to one report , EESL plans to purchase some 5.5 lakh Electric Cars over the next 3 years to replace the entire current fleet of Government  . You can calculate the savings !

·         It is another matter that “ Purchasing “ is in itself , a BAD idea !  I have pleaded with EESL to “ Lease “ these cars ( from the manufacturers ) and save thousands of crores of rupees  !

     Read :    To Buyor not to Buy ?  [ 11  Oct  2017  ]

    https://myblogepage.blogspot.com/2017/10/to-buy-or-not-to-buy.html

 

·         It seems , the Government / EESl are “ considering “ the option of buying these cars ( and lakhs of electric rickshaws ) , WITHOUT Li-ion Batteries , in order to bring down the initial investment . Government is hoping that private parties will invest into huge inventory of such batteries and get into “ Battery Swapping “ business ( - hopefully , to offset the absence of battery charging stations ) .

With a GST of 28 % on bare batteries , this battery swapping business is unlikely to take off !

I do hope the next meeting of GST Council expected to be held on 10^th Oct , would reduce the GST rate on Li-ion Batteries to 12 %

Oversight can always be overcome !

03  Oct  2017

www.hemenparekh.in / blogs

   

Says Prez : Make judgements easier to understand

A news report in DNA ( 29 Oct ) quotes President Shri Kovind as follows:

“ High courts deliver judgements in English , but we are a country of diverse languages. The litigant may not be conversant in English, and the finer points of the judgement may escape him / her .

The litigating parties will thus be dependent on the lawyer or another person, to translate the judgement . This can add to time and cost “

Very true

This observation equally applies to the arguments / cross examinations / interrogations , as a case plays out in the court

Now , we all know that big prestigious conferences ( including UNO and our own Lok Sabha ) have human translators who translate a speech in a number of languages , even as it gets delivered

Listeners put on head phones and select the language of their choice

But soon this will become obsolete !

Already Google Translate ( and translation software being offered by Foreign / Indian companies ), can translate in a number of Indian languages . All you have to do is to download the App on your Smart Phone and insert the ear plugs !

Then , apart from Smart Phones , there are  numerous stand-alone devices which too , translate a word spoken in one language by a speaker , to the language of the listener  - instantaneously too !

All of these hardware and software are improving by the day and covering more and more languages

May be Shri Ravi Shankar Prasad ( Law Minister ) would like to throw this challenge to Sundar Pichai ( CEO , Google ) , who , I am sure , would be happy to accept it !  He is already doing this on his Mobile Wallet App , “ Tez “

Just provide him with a database of ONE MILLION high court judgement delivered over the last 10 years ( in English )

He will subject these to BIG DATA / Artificial Intellegence / Machine Learning / Neural Network etc ( I have run out of jargon words ! ) and may even prepare judgements in advance for approval by the Judge !

But if we don’t trust Google , we can always turn to  Liv.ai    

02  Nov 2017

www.hemenparekh.in / blogs