#ECommerce #FDI # The E Commerce Elephant

There is an old story about 7 blind men trying to figure out the shape of an elephant by touching different parts of the body of an elephant and based on that , trying to imagine what the full elephant might look like

Something similar is happening over the past few days since draft of E Commerce Policy got released

With one difference

All the wise men ( and there are more than 7 ),are saying :

 “ E Com Policy should NOT look like this “

Following are some of their comments :

(1)   “ Single Regulator / single Law “ , is a stupid idea . It will slow down decision-making

(2)   Differential voting rights for Start Ups may discourage FDI

(3)   Digital Economy is not something STATIC . It is continuously EVOLVING

(4)   Should there be separate laws for contract enforcement ? One for normal commerce

       and another for E Commerce ?

(5)   It is not government’s job to micro-manage the prices

(6)  Why should Import Duty differ for goods imported via ELECTRONIC  vs  NORMAL

       methods ?

(7)  Why should an officer certify eligibility , instead of leaving it to the players which model

       to follow ?  [  Inventory-led  or Marketplace  ]

(8)   Why should Government get into the business of launching E Commerce Platform ?

(9)   The policy is creating an Uneven Playing Field , between Foreign Companies and

        Domestic Companies

(10)   Why should only Domestic Companies have the option of holding inventories ?

          [  provided goods sold are entirely domestically produced  ]

(11)   How can government keep changing “ Regulatory Goal Posts “ ?

(12)   This smells of re-introduction of License Raj  !

(13)    Is it government’s job to decide WHO shall offer WHAT promotion scheme and

          WHEN ?

(14)    What is the idea behind saying :

        *  Group companies of an E Commerce firm cannot take actions that influence / distort

            final process

       *   Bulk purchases by “Related party sellers” of branded goods that lead to “ price

            distortions “ shall be banned

  

  (15)   How can Regulator fix floor-prices and prohibit deep discounts below a threshold

           when technological advances [ eg : 3D Printing – Use of Robots – AI etc ] are

           continuously lowering manufacturing costs ?

           What is rationale behind fixing a specific sunset date after which “ deep discounts “

           must stop ?  Large E Commerce firms in India are mostly owned by the American /

           Japanese / Chinese  companies . If they are bringing in and pouring dollars / yen /

           yuan , to offer deep discounts to Indian consumers , why should you bother ?

  

         

           Why should the consumers be deprived of continuous lowering of manufacturing

           costs ?

(16)    Discounts are offered by the Vendors and not the E Com Platform. How will you

          control them ?

(17)    What is idea behind allowing 49 % FDI in only those Online Companies which sell

          Indian goods ?

          This recommendation goes against earlier Press Note # 3, which must not be diluted

(18)   Data generated by E Commerce Firms :

         Where is the need for a separate framework exclusively for E Com firms when that

         subject is fully covered by the SriKrishna Committee ( Data Protection Law ) who has

         recommended a Data Protection Authority ( DPA ) ?

 (19)   Govt should view retail from a multi-channel lens and laws that apply to one channel

          should apply to other retail formats as well – whether OFFLINE or ONLINE

 

          ( Retailers Association of India - RAI )

 (20)   Kumar Rajagopalan [ CEO – RAI ] says :

          “ There are many issues and ambiguity with the policy, including the DEFINITION of

          E COMMERCE .

         There is no clarity on who is an e commerce player now . Almost every retailer in the

         country uses technology and supports online buying and delivery

         Can everyone be called e-commerce then ?

         The new draft suggestion seems to be dividing retail by channels, which are creating

         confusion even from an FDI angle “

What is heartening is that the Government has invited all stake-holders to send in their suggestions re changes / modifications that they would like to be incorporated

Over the past 3 YEARS , I have sent my own views to the Policy Makers through following emails . Once again , I urge all the stake-holders to consider these :

 

Defining E – Commerce                                  [  14  July  2015  ]

 

 

If You cannot lick them ; Join them                  [  24  July  2015  ]

 

 

WHO WILL OBSOLETE WHOM ?                        [  20  Aug  2015  ]

 

 

E - Commerce is Easy Commerce !                   [  15  Nov  2015  ]

Not an easy task to define what is E Commerce ( and what is not ), considering all the possible permutations / combinations ( running into LAKHS of them ! ) , of the following elements :

#    NATURE

      *  A physical " Product " ( Capital Goods / FMCG / Consumables / Perishables )

      *  A virtual " Service "    ( Medical advice / Legal advice / Consultancy / Software etc )

#    GEOGRAPHIC   SPREAD

     *   Across National boundaries    ( International Trade )

     *   Across State boundaries        ( within India )

     *   Across Municipal boundaries   (within a State )

#    SUPPLY- CHAIN   /  INTERMEDIARIES

     *   Mfr  >  Distributor  >  Dealer  >  Retailer  >  Buyer

     *   Mfr  >  Buyer

     *   Any disintermediation in the above chain

#     ORDER  PLACEMENT  /  ACCEPTANCE

     *   In a physical location ( Shop / Store / Office / Factory / Home )

     *   In a virtual location   (Web site/Mobile App/SMS/ Email / Phone / Video Conference  )

#     DELIVERY

     *   Physically in a Shop / Store etc where Buyer collects / picks-up from shelf

     *   Delivered to Buyer's location, thru Delivery Boy

     *   Delivered to Buyer's location, using a Drone

     *   Delivered to Buyer on his home-based 3D Printing Machine  ( using internet )

#    PAYMENT

     *   Cash against delivery

     *   Pre-paid / Post-paid Cheque

     *   Credit / Debit Cards across counter

     *   Credit / Debit Cards thru online Payment Gateways

     *   Through Mobile Wallets

     *   Electronic Bank Transfer

     *   Using Virtual Currency like Bit-Coins

     *   Barter of Goods or Services

#    FOREIGN   INVESTMENTS

    *   FDI in Manufacturing / Supply Chain / Payment Gateways - Apps-  Mobile Wallets 

    *   FDI in Web sites like Amazon - Flipkart - Alibaba - Snapdeal etc ( What percentage ? )

Can you think of any other " Elements " that I have forgotten  ?

In any case , given the fact that there can be lakhs ( if not millions ) of permutations / combinations of the above-mentioned elements , one must not attempt to define what is E Commerce ( and what is not ) , by inclusion or exclusion of these elements in definition

Such a complex definition would lead to thousands of court cases involving Governments and each court interpreting the definition , differently  !

The ONLY DEFINITION that would satisfy ALL  of these permutations/combinations , is :

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

Any exchange of " Value " between any number of parties , involving ,

#  Goods or Services , on the part of one party

with,

#  Money or its equivalent consideration , on the part of a second party

with or without using,

#  Intermediary services , on the parts  of any other parties

Lessons from History ?                                  [  07 Jan  2016 ]

 

 

One Day , Everything will Sell Online !            [  29  Mar  2016  ]

 

 

Missing the Woods for the Tree ?                     [  12  Aug  2016  ]

 

The best that the Committee can recommend is adoption of the following :

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

Parekh's , " 3  Laws of E-Commerce Economy "

- to be incorporated as 123rd Constitutional Amendment

( with apologies to Isaac Asimov's 3 Laws of Robotics ! ) :

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

LAW  #  1 :

Asimov :

     A robot may not injure a human being or, through inaction, allow a human being to come to harm.

Parekh :

Rules / Regulations of E-Commerce shall not come in the way of unfettered creation of SELF EMPLOYMENT

    

Any existing Law / Rule / Regulation that hinders a person to become Self Employed, shall be treated as ultravires

Further , any Law / Regulation of " E-Commerce / FDI " which slows down Investment ( Foreign or Local / Official or through channeling of BLACK MONEY ), shall be treated as " bad in law " and struck down

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

LAW  # 2

   

Asimov :

     A robot must obey the orders given it by human beings, except where such orders would conflict with the First Law.

       

     Parekh :

     Laws / Regulations governing " E-Commerce / FDI " shall be subservient to Laws / Regulations governing , 

   

      " Commerce / Investment " .

     Whenever any Public Authority / Court finds conflict between the two , laws / regulations governing " Commerce / Investments " , shall prevail under all circumstances , and in favor of the self employed

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

     LAW  #  3

     Asimov :   

     A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws.

    Parekh :

     Laws / Regulations of " E-Commerce / FDI " which get over-ruled under  LAW # 2 , shall immediately " Self Destruct " in favor of unobstructed progress of  TECHNOLOGIAL ADVANCES

 

  

 

 

Level-Playing Field is a Double Edged Sword !         [  8  Feb  2017  ]

 

 

A New Way to E-Way ?                                          [  15  July  2017  ]

 

 

3 Laws of E – Commerce                                         [  04  Dec  2017  ]

 

 

E Commerce Definition : a Space Ship ?                    [  5  July  2018  ]

 

 

03  Aug  2018

www.hemenparekh.in / blogs

 

 

 

 

 

 

        

 

EESL : Grab this chance !

 Shri Saurabh Kumar

[ MD – EESL ]

How about making a clean / neat profit of Rs 240 Crore / year ?

Here is how :

#   Convert existing “ Outright Purchase “ contract with TATA Motors and M&M , to a “ Lease

     Contract “for those 10,000 electric cars ( less than 500 have been delivered after a lapse

     of ONE YEAR – with no indication for delivery of the balance )

#   Get TATA / M&M to agree for a lease rental of Rs 10 / Km ( wet lease inclusive of the

     driver )

#   Then sub-lease these cars to various Govt Depts at Rs 20 / km ( same as what you are

     doing now - but without a driver ?)

#   Earn Rs 10 / km ( Rs 20 – Rs 10 )

#   That is Rs 20,000 per month per car ( 80 km / day for 25 days = 2,000 km per car x Rs

     10 / km as profit )

#  Rs 20,000 / car / month  x  10,000 cars  = Rs 200,000,000  = Rs 20 crore / month

#  That is Rs 240 crore / year for those 10,000 cars

And all this NET PROFIT without investing a single Rupee !

By replacing those 5 LAKH car existing fleet ( of Petrol / Diesel cars of the Central + State Govts ), with electric cars wet-leased from TATA / M&M , you will make a NET PROFIT of :

Rs 240 cr  x  50  =  Rs 12,000 cr / year !

And not to worry about :

#    Raising Rs 55 lakh*lakh ( Rs 55,000 Crore ), of capital at 15 % interest

#    Maintenance cost ( usually it is 15 % of the Capital Cost of any asset )

#    Hiring of Drivers / Maintenance Staff

#    Installing Li-ion Battery Charging Stations ( TATA – M&M will take care )

#    Absenteeism / Break downs

#    Range Anxiety : drop from 130 km to 80 km (due to insufficient battery capacity )

#    Cars idling in absence of Charging Infrastructure

#    Rate at which cars get delivered ( change to wet lease to get 1000 delivered / month ! )

WHERE  IS  THE  CHANCE  ?

Today’s Economic Times carries following news :

Tata Motors’ E-Cars Fail to Impress EESL 

Extract :

The move comes after the performance of the first batch of cars it delivered under the 5,000-vehicle order didn’t meet expectations and as the company is seeking changes to the specifications for further supplies, they said. 

In fact, rival Mahindra & Mahindra, which is to supply another 5,000 cars in the second phase of the same tender for 10,000 vehicles, has also been negotiating to downgrade charging and battery specifications from what it had offered, they said.

Vehicles will still be within tender specifications post downgrade. 

Dear Shri Saurabh Kumarji ,

If TATA and M&M can come back after ONE YEAR ( of failed deliveries ) asking for a revision of the contract terms , then there is no reason why you cannot say :

“  Look , if you want a revision , you will get it . From today contract stands revised for wet leasing at Rs

    10 per km per car “

I urge you to go through my following earlier emails on this subject :

https://myblogepage.blogspot.com/2018/06/eesl-ev-electriccars.html ………………………….. [  27  June 2018  ]

https://myblogepage.blogspot.com/2018/05/ev-electricvehicles-eesl-wetlease.html ……….[ 13 May 2018 ]

https://myblogepage.blogspot.com/2018/04/eesl-electriccar-scaminindia.html................[ 14 April 2018 ]

https://myblogepage.blogspot.com/2018/04/buy-or-lease.html ……………………………………… [  03  April  2018  ]

https://myblogepage.blogspot.com/2018/03/scam-eesl-nda-bjp-mnre.html …………………. [  08  Mar  2018  ]

https://myblogepage.blogspot.com/2018/03/logical-to-lease.html  ………………………………….[  06  Mar  2018  ]

https://myblogepage.blogspot.com/2017/10/to-buy-or-not-to-buy.html....................... [  11 Oct 2017 ]

https://myblogepage.blogspot.com/2017/08/eesl-lease-cars-do-not-buy.html ………………. [  18 Aug 2017 ]

Please , do not miss this opportunity

If you ever needed an excuse for revising this contract , you have got one now  !

01    Aug  2018

     www.hemenparekh.in / blogs

One Step > Two Steps > Four Steps ?

Today’s news papers are full of Imran Khan’s “ peace overture “ to India . Eg :

“If they take one step towards us, we will take two, but at least we need a start.”

https://www.hindustantimes.com/world-news/pakistan-elections-victorious-imran-khan-sends-peace-overture-to-india/story-bGGm77kWobmbGun4GnPKgJ.html

Of course , on both the sides , there are enough ( more than enough ? ) persons with vested interests ( eg : hanging on to power , at any cost ? ) , who will say :

“  Forget any possibility of a permanent solution of the decades old “ Kashmir Issue “

I hope – and pray – Imran has the courage to “ break out “ of the clutches of Pak Army and say :

“ I am willing to consider converting LOC as an International Border “,

And our very own “ ( Inter ) - Nationalist “ has the courage to say :

“  If you accept that as the basis for a dialogue , we are willing to talk “

Since netas on either side will not find time to read , I urge ordinary citizens of India and Pakistan to read my following suggestions :

   Kashmir Conundrum ?  ………………………..[ 28  Dec  2015  ]

A Syria at our doorsteps ?  ………………………[ 06  Oct  2016  ]

 

 

Permanent Solution for Kashmir ? …………..[  03  June  2017 ]

 

Drugged  with  Doze of  Denial  ? ……………..[ 12 Nov 2017 ]

 

Dear Imran Khan :

 

If you have the courage and the statesmanship , this dialogue can end up being a “ WIN  WIN “  match for 1300 + 200 million people !

 

27  July  2018

www.hemenparekh.in / blogs

Scrapping Old Vehicles : Swiss Challenge Solution

Hindustan Times ( 25 July ) carries following news :

Government’s plan to scrap old, polluting vehicles runs into roadblock

Highlights :

*  On Monday, a report released by the Centre for Science and Environment (CSE)

   cse@cseindia.org

  , said that about 20 million vehicles had accumulated in India by 2015 that are

   obsolete and require scrapping.

*  Since the scheme will require a huge network of automobile scrapping facilities the

    PMO also wants the ministry to start such facilities on a pilot basis for “gaining

    experience,” the second official added.

   The third official, who is from the road ministry and also did not want to be named,

   said the ministry is going through the directions given by the PMO.

*  As per the proposal, until the 2020 deadline kicks, owners of such vehicles can

   voluntarily scrap their vehicles and receive a discount on the purchase of new ones

*  It was following a meeting at the PMO in March that the road ministry had been

   directed to put up a proposal before the cabinet in three months.

*  In its communication, the PMO also asked the ministry also “explore” the

    establishment of scrapping facilities on the so-called “ Swiss challenge mode ” given

    that such facilities would require vast tracts of land that may not be readily available

    in many states.

*  Under this method, the government would receive an unsolicited proposal from a

    person / company that is put online. A second person can then submit a counter

    proposal; if the original proposer fails to match the terms of the counter-proposal, the

    project will be awarded to the latter.

Dear Shri Nripendra Misraji

  

[  Principal Secretary to PM ]

(  23013040  / cabinetsy@nic.in  /  secypg@nic.in  )

   

Over the past 2 years , I have sent following emails , offering some suggestions in this matter of scrapping of old vehicles .

Since these were also published ONLINE ( on  www.hemenparekh.in ), I urge leading Indian Industrialists to submit their “ SWISS  CHALLENGE  MODE “  proposals , based on my emails

PIYUSH PLAN  ?   ………………………………………… [  27  March  2016  ]

Retiring Old Vehicles - Gadkari Style ? ………. [  30  May   2016   ]

Young or Old ?  ………………………………………………[  27  Aug  2016    ]

From OLD to NEW ?  No , go NEWER !  ……….[  22  Sept   2016   ]

Building Castles in the Air ?   ………………………..[  12  March  2017  ]

Best out of a Bad Bargain ?  ………………………….[  29  March  2017  ]

Car Grave-Yard of World ?  ……………………………[    14  Feb  2018    ]

One door closes  ;  Another opens   ……………..[   27  Feb  2018     ]

Mahindra Accelo : Saluting a pioneer  …………..[  19  June  2018    ]

25  July  2018

www.hemenparekh.in / blogs