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

Wednesday, 24 January 2018

Safeguarding Existing Jobs ?




It is understandable that Labour Unions are worried about safeguarding the existing jobs of their member workers


But political parties have to repeatedly approach citizens for votes and answer : When do we get jobs ?


But it is a rare case when a political leader musters courage to say :


“ There are no new jobs in Public Sector / Government Departments – Agencies . Nor are we in a position to dictate Private Sector to hire more people “


It is also a rare case when an Industry  Association ( eg ; ASSOCHAM – FICCI – CII – SIAM etc ) , tells the public :


“  With ever-increasing competition ( locally and from abroad ) and ever-increasing Labour Costs ( - what with DA rising every month , linked with CPI rise ) , we have no choice but to automate our operations ( in office or on shop-floor ) and introduce robots . Sorry !  But , if we do not automate , we may have to shut shop and even the existing workers will lose their jobs “


It is in light of this stark reality of “ globalized world trade “ , that I request all the parties to read – and debate – following news ( Economic Times / 25 Jan 2018 ) :








Should the parties concerned [  Labour Unions – Employers – Politicians – Governments ], want a “ Compromise Formula “ , they should consider my following suggestion :



SavingJobs : Creating Jobs  [ 19  Dec  2017  ]





WHAT WOULD BE THE RIGHT APPROACH ?



*  Right approach would be : " Do not give fish to a hungry man / teach him how to
    fish "



 In short , empower them to earn their own living by teaching them " Skills " and by
 gaining " Experience " in use of those skills



Entire cost of this " Skilling " and " Experiencing " to be borne by the Government , till
each targeted poor / unemployed person , either gets gainfully employed or becomes
self-employed



Should he choose to become Self-Employed ( by registering as a " Start Up " ),
exempt him from paying Personal Income Tax for next 10 years



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

HOW TO TRANSLATE THIS " SELF HELP " CONCEPT INTO PRACTICE ?


Divide the implementation in following 3 phases



*   Empowering - 3 years ( Imparting Skills in Industrial Training Institutes )



*   Experiencing - 3 years ( Providing experience in Ind / Commercial Establishments )



*   Self-dependence Phase ( Working in a gainful job or as Self Employed )



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

WHAT SKILLS WILL GET PROVIDED IN ITI ?

Entire range of Manufacturing Industry related skills being currently imparted plus a
whole host of commercial skills required by E Commerce / Fintech / Agriculture
Processing / Payment Banks / Service Sector / BPO / Telecom and emerging sectors



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


HOW SHALL WE MOTIVATE UNEMPLOYED YOUTH TO JOIN ITIs ?



Each trainee will receive Rs 1000 pm ( for course duration of 3 years )



   This amount will get deposited in Jan Dhan bank account of trainee ( DBT )




HOW CAN WE GET PRIVATE SECTOR PARTICIPATION IN THIS PHASE ?


*  If a Private firm or individual comes forward to set up such a Training Institute ,



   #  Treat it as an Infrastructure SPV



   #  No questions asked as to the source of funds for setting up such ITI



       {  a kind of Amnesty Scheme to convert Black Money into White Money  }



   #  A government grant of Rs 1,000 pm per trainee to such SPV ( DBT in Bank A/C )



If this is done , expect 10,000 SPVs to come up within one year and 10 million youth
to get  trained each year !




HOW CAN WE GET INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS TO PROVIDE
EXPERIENCE TO TRAINEES PASSING OUT OF ITIs ?


*  Amend Apprenticeship Act



*  Allow all Industrial and Commercial Establishments to engage ANY NUMBER of
   apprentices ( without upper limit ) , for a period of 3 years



*  Starting stipend = Min of Semi-Skilled wages ( currently , approx Rs 6,000 pm )



*  Annual Increment = 5 %



*  Establishment to pay 75 % of stipend



*  Government to pay 25 % of stipend ( DBT into Jan Dhan account of the Apprentice )



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



HOW CAN WE ENSURE A " LEAKAGE PROOF " DISBURSEMENTS OF DBT AMOUNTS ?


*    Through implementation of Mobile based Attendance System , outlined in my blog,



   " From BAD to MAD "  [  01  Jan  2016  ]








HOW WILL MY SUGGESTION HELP ?


*  It will solve the problem of poverty organically / permanently



*  It will prevent " Dependency Culture " ( looking up to Sarkar Maa Baap for
   everything )



*  It will enable poor to retain their " Self Respect / Dignity "



*  The money spent by government will create highly productive " Human Assets "



*  It will overcome the " Skills Shortages " experienced by the Economy



*  It will create gainful " Self Employment " for millions of poor



*  It will make India , a " Low Cost Economy " , able to export its goods and services



*  It will channelize Black Money into a " Nation Building " exercise



25  Jan  2018



Thanking You in Anticipation !




Today’s Hindustan Times carries following news :






The finance ministry is considering giving relief to taxpayers in the form of higher income tax deduction, said two government officials familiar with the developments.

The current relief is Rs 2 lakh and discussions are on to increase it to at least Rs 2.5 lakh. The extra deduction, however, will be available only on investments made by taxpayers in government infrastructure projects, the officials said.

“ Discussions are on to give relief to taxpayers in the form of higher tax deduction. The higher deduction will be for investing in infrastructure projects in the form of bonds or through equity-linked savings schemes,” said a government official, who asked not to be named. These investment routes are likely to have a lock-in period, he added.

 “There is intent to give tax relief to as many taxpayers as possible, but a higher deduction will mean loss of revenue so the exact quantum of the relief will depend on the government’s fiscal elbowroom,” said another government official.

 “ A higher tax deduction for investment in government infrastructure projects would mean more money will be channelized into these projects and in capital markets. Every Rs 10,000 increase in the deductions will lead to an additional investment of Rs 7,500 crore, if we consider 75 lakh people pay income tax in India,” said Girish Vanvari, partner and head, KPMG India.



Dear Shri Jaitleyji :



Thank you in anticipation of such an announcement on 01 Feb 2018



Thank you for reading my following 22 emails where I have suggested that :



“ Under a BLACK MONEY AMNESTY SCHEME , all hidden income deposited in Infrastructure Bank Accounts ( similar to Jan Dhan Accounts ) , can only be used for investing in Govt Infrastructure SPVs , with a lock-in period of 10 years and all interest / dividend to be only credited to such Infrastructure Bank Accounts and no money can be withdrawn from such accounts for specified period “



It may still not be too late to enlarge your proposal ( from just raising tax limit, from Rs 2 lakh to Rs 2.5 lakh ), which might fetch you a meagre Rs 7,500 crore ( a little over $ 1 Billion, as against Asian Development Bank’s estimate of India’s need for Infra Funds at $ 291 billion / year , for next 14 years ! – with just Shri Nitin Gadkari and Shri Piyush Goyal needing $ 300 Billion for their ministries , in next 4 years ! )



My suggestion could get you Rs  75 lakh*crore  for Infrastructure !



BabaRamdev and Black Money  [  29  May  2011  ]

Magic Wand ?  [  09  June  2011  ]

https://myblogepage.blogspot.com/2011/06/magic-wand.html

 

CreateWealth to Create Jobs  [  26  Feb  2014  ]

https://myblogepage.blogspot.com/2014/02/create-wealth-to-create-jobs.html

 

Don't Ask" How " ?  [  07  April  2014  ]

https://myblogepage.blogspot.com/2014/04/dont-ask-how.html

 

Next 100 Days [  16  May  2014  ]

https://myblogepage.blogspot.com/2014/05/next-100-days.html

 

WhiteHoles of Black Money ?  [  03  June  2014  ]

https://myblogepage.blogspot.com/2014/06/white-holes-of-black-money.html

 

ACASE FOR ZERO PERSONAL INCOME TAX [ 11 Nov 2014 ]

https://myblogepage.blogspot.com/2014/11/a-case-for-zero-personal-income-tax.html

 

AVIRTUOUS CIRCLE ?  [  04  Jan  2015  ]

https://myblogepage.blogspot.com/2015/01/a-virtuous-circle.html

 

MakingMolehill out of Mountain ? [ 19  Nov  2015  ]

https://myblogepage.blogspot.com/2015/11/making-molehill-out-of-mountain.html

 

STRUCTURALREFORMS ?  [  30  Jan  2016  ]

https://myblogepage.blogspot.com/2016/01/structural-reforms.html

 

TIME IS NOW !  [  02  Feb  2016  ]

https://myblogepage.blogspot.com/2016/02/time-is-now.html

 

Don'tExpect This in Budget  [  28  Feb  2016  ]

https://myblogepage.blogspot.com/2016/02/dont-expect-this-in-budget.html

 

Quantum Jump ? [  29  Feb  2016  ]

https://myblogepage.blogspot.com/2016/02/quantum-jump.html

 

MakingIndia a Tax Haven ?  [  04  April  2016  ]

https://myblogepage.blogspot.com/2016/04/making-india-tax-haven.html

 

FDI :By any other name ?  [  01  July  2016  ]

https://myblogepage.blogspot.com/2016/07/fdi-by-any-other-name.html

 

PrimeMinister Who Listens  [  03  Dec  2016  ]

https://myblogepage.blogspot.com/2016/12/prime-minister-who-listens.html

 

OneInfrastructure SPV ? More will follow  [  20  March  2017 ]

https://myblogepage.blogspot.com/2017/03/one-infrastructure-spv-more-will-follow.html

 

 

WhatGoes Out , Comes Back ?  [  05 May  2017  ]

https://myblogepage.blogspot.com/2017/05/what-goes-out-comes-back.html

 

PrivateSector in Infrastructure ?  [ 28  July  2017  ]

https://myblogepage.blogspot.com/2017/07/private-sector-in-infrastructure.html

 

Nibblingon Crumbs ?  [  08  Aug  2017  ]

https://myblogepage.blogspot.com/2017/08/nibbling-on-crumbs.html

 

Howto Raise $ 500 BILLION  [  17  Sept  2017  ]

https://myblogepage.blogspot.com/2017/09/how-to-raise-500-billion.html

 

FromGarbage to Power ?  [  16  Jan  2018  ]

https://myblogepage.blogspot.com/2018/01/from-garbage-to-power.html

 

 

25  Jan  2018

www.hemenparekh.in / blogs