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

Monday, 4 February 2019

Organizing the Unorganized




In his budget speech on 01 Feb 2019 , Shri Piyush Goyal announced the ,


Pradhan  Mantri  Shram-Yogi  Maandhan Scheme



Objective :
To provide pension, to 42 crore workers, working in in the Unorganized Sector”



Details and Problems :
These are described at the bottom of this blog





My Suggestion re Implementation of this Scheme :




#   ROLE OF VARIOUS MINISTRIES


      Ministry of Labour

·         Provide overall guidance / direction / supervision over implementation of the scheme and allocate / make available the required funds to other Ministries


·         Carry out necessary amendments to the relevant labour laws to make it mandatory for all the employers to record employee attendance using mobile app described at :

             From  BAD  to  MAD  (  01  June  2016  )


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

      Ministry of Electronics and IT

·         Procure Computers for FREE supply and installation at 60 million MSME ( estimated to employ 120 million persons )

Specifications of Computers ( estimated cost = Rs 2 lakh each ) :


#   Built-in GPS ( NaviC based ) / Bluetooth / NFC


#   Video Conferencing software



·         Provide 100 Mbps broadband connection ( FREE ) to each MSME joining Scheme

     
·         Develop the software platform for digitizing the HR related operations of MSME , through design / develop / launch of portal    www.MaanDhan.gov.in



·         Direct each of the 1.2 million operators of 3 lakh CSC [ Customer Service Centers ] to visit 50 nearby MSME and guide / help , both the workers and the MSME employer , to enroll the workers on www.MaanDhan.gov.in , by filling in the REGISTRATION FORM with the following data about each worker :



    #  Name / Contact Details / DOB / Aadhar Card No / Employee Number

       ( Each unique Employee Number will be auto-generated by a

       common Salary Payment Software , running on Web site Server )


   #  Employee's Jandhan Yojana Bank Account Number for salary transfer ( DBT )


   #  Employer's Jandhan bank account / Unique Employer Number

       (  Employers will be mandated to effect the salary payments , only through digital

        bank transfer and never through CASH )


   #  Employee Category ( Hourly-rated / Daily-rated / Monthly-rated )



  #  Payment Frequency ( Daily – Fortnightly – Monthly )


  #  Leave provisions / PF rate / TDS rate / Allowances / Reimbursements


  #  Any other relevant data ( either about employee or of employer )








·         Each CSC operator will be assigned 50 MSME so as to cover all 60 million MSME within one year


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

Ministry of MSME

·         Upload comprehensive database of 60 million MSME on www.MaanDhan.gov.in 


·         To launch www.EmpowerMSME.com 

This portal will enable 60 Million MSME to download ( for FREE ) , documents – records – forms – drawings – process charts – operating procedures – contracts etc , uploaded on this portal by large / organized sector Companies ( - which are non-secret and being used by these companies currently or in the past )


This portal has been developed and tested by L&T and designed with dataset which is identical with database of 60 million MSME on Ministry’s own website – enabling free migration of data , either way


I am sure , Padma Vibhushan Shri Anil Naik (  Chairman – L&T Group ) would be too happy to hand over the Source Code for this portal to the MSME Ministry [ of course , FREE of cost or obligation ] and help them launch it – WITHIN 2 WEEKS  !



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


Ministry of Skills Development

·         There are around 15,000 skill training centres in the country right now, which are inadequate for India’s size

 

·         We need to train at least 2 crore people every year, but right now we’re training only 1.05 crore. We need to double our capacity


·         At Rs 3 cr / centre , we need Rs 45,000 cr to construct additional 15,000 centres , to be able to train 2 cr youth / year . It will take years to construct these centres , even if the required funds were available ( - which is not ! )


·         To bypass both of these limitations , I suggest :


         #   Transform millions of  MSME  into “ Skill Training Centres


         #   Deliver online Training Courses for development of various skills through the
              Computer provided by the Labor Ministry for implementation of MaanDhan
              Scheme

        
         #   Some of these may be VR based training, requiring VR headsets ( to be provided
              FREE to MSME by this Ministry ) . These can be used not only by the apprentices
              but also by the MSME’s own workers


         #   As an incentive / motivation for the MSME to undertake to train at least 2
              apprentices per year ( under the Apprentice Act ) , following may be considered :  
          +   Government subsidizing the stipend payable to the trainees by 50 %
          +   No obligation to absorb the trainees after completion of training



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

Ministry  of  Commerce

{ DPIIT = Department for Promotion of Industry and Internal Trade }


·         To launch portal www.B2BmessageBlaster.com
     (  I will be happy to provide the Source Code for this , free of any cost / obligation )


         This will portal will enable ,


         #   MSMEs to reach out to 2.73 lakh large / organized Indian Companies
              and 4,000 + International Chambers of Commerce , located in 200 countries, for
              promoting their products / services

         
         #   Large / organized companies ( Indians and Foreign )
              to blast their requirements ( for raw materials – components – sub assemblies –
              services ) etc to 60 million MSMEs.  This will boost exports from MSME sector


         #   All Ministries / Government Departments to advertise ( through blasting ) their
              requirements ( including those posted on  e-Gem portal ) to these 60 million
              MSMEs , apart from blasting their notices / circulars / announcements etc


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


Role  of  the  MSME :

·         To ensure that ALL of its employees ( blue collar workers or white collar supervisory staff ), get enrolled in the Scheme by registering on www.MaanDhan.gov.in 

     – whether they earn less or more than Rs 15,000 per month


·         To effect their salary – wages payment , only through online bank transfer , after deducting Rs 55 or Rs 100 from their salaries and depositing these amounts in the Pension Accounts of the respective employees . Hence no need for any misses !


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

Role  of the  Workers :

·         They must not only enroll in the Scheme by registering online but they MUST download ( from www.MaanDhan.gov.in web site ) , MAD mobile app on their smart phones and register their ENTRY and EXIT at the work-place as explained in :
         From  BAD  to  MAD  (  01  June  2016  )


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


ADVANTAGES  of  MY  SUGGESTION :


#   For employees , no need to file a separate annual Income Tax Return

#   Direct deposit of PF / TDS amounts into bank accounts of Govt Depts

#   Direct Benefit Transfer ( DBT ) to every Employer for Stipend Subsidy ,
     based on number of total trainees / apprentices employed

#   Total number of employees in India ( category / region / industry )

    (  No more disputes re Jobs Generated each month ! )

#   Employment Density ( Industry wise / Region wise / Skill wise etc )

#   Net Employment Growth Rate ( weekly - monthly / Industry-wise )

#   Co-relation with no of persons graduating at various levels

#   Data about those Unemployed ( " Graduating " less " Employed " )

#   Overtime Statistics ( Use / Abuse )

#   Work-hour Analysis ( Ave hours / week - month )

#   Wage / Salary Rates ( Rs per hour ) - Industry wise / Region wise

     ( of great interest to Foreign Investors looking to bring down
       manufacturing costs , by outsourcing to India / manufacturing in India )

#   Compliance with labour laws / tax laws / Apprentice Act etc

#   Job Market Forecasts through BIG DATA ANALYTIC ( region / industry )

#   Demographic  Profiles of employees  ( Rural to Urban migration )

#   Per Capita Income Growth for persons using MAD app  ( MOM / YOY )

#   Changing composition between Blue Collar and White Collar employees


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


SCHEME  DETAILS :


Types of Workers ( examples mentioned in Budget speech ) :

·         Street Vendors
·         Rickshaw Pullers
·         Construction Workers
·         Rag Pickers
·         Agricultural Workers
·         Handloom Artisans
·         Domestic Workers


Eligibility Criteria :

·         Those drawing a monthly income ( not necessarily , thru salary / wages ? ) of Rs 15,000 or less


Contribution to be made by the Worker :

·         Those joining at age 18 and age 40
-      To contribute Rs 55 / month for 20 years

·         Those joining at age 29
-       To contribute Rs 100 / month for 20 years


Contribution that the Central Government will make :

-      Matching amounts every month



When ( at what age ) will these contributors start getting pension ?

-      Upon reaching the age of 60



How much pension amount will they get ?

-      Rs 3,000 per month



What is the total number of workers in the Unorganized Sector ?

-      Approximately Rs 40 – 42 crore



How many of these are expected to enroll in this scheme ?

-      Some 10 crore ( 100 million ) in next 5 years



When is enrollment expected to start ?

-      From Feb 15 , 2019



How much money is allocated for this scheme ?
-      Rs 500 crore immediately


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

Problems :

·         Will amount of contribution vary with age ?


·         What happens if an enrolled contributor fails to make monthly contribution half way , because he lost his job or income-source ?


·         What happens when a contributor’s income rises above Rs 15,000 / month ? From that month onwards , does he become ineligible and stop paying monthly installments ? In such an event , how much pension would he get upon reaching age of 60 ?


·         How will Labour Ministry satisfy itself that the person enrolling belongs to “ Unorganized Sector “ AND is currently has an INCOME of less than Rs 15,000 ?


·         What about “ Self Employed “ persons earning less than Rs 15,000 / month ? Are they ineligible to enroll ? How does Ministry certify that ? By definition , “ Self Employed “ are the real “ Unorganized Sector “ !


·         Even those “ employed “ by MSME ( - some 12 crore persons in some 5 crore establishments ) , get their salaries in CASH – and without being shown on any kind of official Payroll . A great majority of these earn a wage of Rs 15,000 or less


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


CAUTION :


Nothing like this has ever been attempted earlier , so it is not possible to envisage ALL the problems that Ministry / LIC will face during the course of implementation


Hence , as the implementation rolls out , course-corrections will become necessary , as it happened during the implementations of De-Monetization /  GST / AyushMan Bharat Scheme and now , about to happen in implementation of the E Commerce Policy


But , if we keep “ analyzing “ for years ( for fear of getting wrong, ) , we will remain “ paralyzed “ forever !


Hence, I suggest , Ministry / LIC make a beginning as follows :


·         In the first phase , roll out the scheme for only those who are “ Employed “ in MSME



Based on experience gained, roll out for the “ Self Employed “ in second phase



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


CONTEXT  :



The minister said in order to reap the benefits of AI and advanced technologies, a national programme on AI has been envisaged by the government

This would be catalyzed by the establishment of the National Centre on AI as a hub along with Centres of Excellence

Nine priority areas have been identified. A national AI portal will be developed soon

AI technology helps in analyzing data in various technologies to improve the efficiency of system like,

#    Power management in cars
#   Mobile Devices
#   Weather predictions , and
#   Image Analysis  etc

Over 3 lakh Common Service Centres ( CSC ) employing about 12 lakh people are digitally delivering several services to the citizens

The CSCs are expanding their services and also creating digital infrastructure in the villages, to convert the villages into Digital Villages

The Government will make one lakh villages into Digital Villages over the next 5 years  

====================================================
04  Feb  2019

Rsvp :  hcp@RecruitGuru.com

Friday, 1 February 2019

Waiting for the Full Film



After Shri Goyal’s Budget speech yesterday , Shri Modi said :


“ This was only a trailer . Wait for the release of the full film after the general elections  




Interpretation :


#  TRAILER

     Abolishing Personal Income Tax for persons earning up to Rs 5 lakh / year


#  FULL FILM

    Total abolition of Personal Income Tax .( In past 3 years, I have sent 20 emails for releasing this film )



Implications :

#  LOSS TO EXCHEQUER

    Rs 18,500 Cr for yesterday’s announcement ( from expected revenue of Rs 12 lakh*crore for next year , this is
    an insignificant 1.6 % drop )



#   GAIN TO ECONOMY THRU INCREASED CONSUMPTION

    Some 3 crore tax payers will have Rs 12,500 extra .  What will they do with this extra money ?


    I have explained this in my following emails to NDA Cabinet Ministers  :

    What would they do ?  ………………………… [  03  May  2016  ]

    What would happen ?   ……………………….. [  29  Sept  2017  ]


 

#   REDUCTION  IN  TAX EVASION  ( More taxpayers turning honest )


   Shri Goyal said , this tax rebate will benefit some 3 crore tax payers , who are currently in this slab


   I have a feeling that , by end of next year , this number could well go up to 6 crore !



   Not difficult to see


   Apart from those 3 crore who are in this slab “ officially “ , I am sure there must be another 3 crore who get ,


   #   Rs 2.5 lakh income officially through cheque , and declare in their tax returns


   #   Rs 2.5 lakh income by CASH , which they do not report in their tax returns ( which they spend in CASH )


With yesterday’s announcement , they have NOW, no reason to hide their “ so far undisclosed “  cash income


Now , they will declare all of their income honestly in their tax returns



They will become honest !



They will accept all income through digital methods and also pay ( for goods and services ) by digital methods  !



Of course , Shri Goyal could not announce this expected doubling of tax payers in this slab because it would amount to admitting that the NDA government could not catch these ( 3 crore ? ) tax evaders in 5 years




#   MANIFESTOS  of  MAHAGATHBANDHAN  parties


     The only option which they are left with , is to incorporate in their Manifestos , the release of the  FULL FILM , if
     voted to power !



     Any lesser promise and they can forget to win even 100 seats in next election !




Dear Shri Goyalji,



Now I understand what you meant when you said in your speech :



Ek  Kadam  Uthataa  Hai , to  Sau  Rahe  Khul  Jaati  Hain 



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


02  Feb  2019