Thank You, Shri R K Singhji : the Green Warrior

 

Context :

 Power Minister unveils the green day-ahead market   /   Business Line  /  26  Oct  2021 

Extract :

In a bid to further deepen the electricity trade in India, Power Minister RK Singh on Monday launched the green day-ahead market (GDAM).

The launch will also provide competitive price signals, besides offering an opportunity to the market participants to trade in green energy, in the most transparent, flexible, competitive, and efficient manner, the Power Ministry said in a statement.

“We are opening doors for renewable energy. In this new era of continuous reforms including the launch of GDAM today, any interested party can set up and sell renewable energy,” Singh said during the launch.

“Benefits of free ISTS (inter-State transmission system) will be available for renewable energy and open access will be available within 15 days,” Singh said. He further added that the big industries can go green and the government would make efforts to make business simpler and GDAM is a step in that direction.

 “The market-based competitive prices will provide another option to renewable generators to sell power as well as accelerate the renewable capacity addition towards the Government’s vision of building India as a sustainable and efficient energy economy. The distribution utilities would also be able to sell surplus renewable power generated in their area. The obligated entities (distribution licensee, open access consumers and captive power consumers) would also be able to meet the RPO target by directly buying green power from the power exchange(s). The non-obligated entities will be able to buy power on a voluntary basis and help increase the share of green power,” the release said.

The Minister also informed that around ₹16,000 crore has not been paid to Coal India by the State power generating companies. He said that Gencos wouldn’t be able to pay unless and until Discoms pay Gencos for the power supplied to them. As per Singh, the dues of all Gencos excluding States owned are ₹75,000 crore.

 

My  Take :

 

Dear Shri Singhji,

 

It is heartening to hear your bold talk of ,

“  In this new era of continuous reforms including the launch of GDAM today, any interested party can set up and sell renewable energy “

 

I urge you not to delay the next BOLD REFORM, advocated in my following e-mail :

Ø  Not Good Enough ! ………………………………………[ 02 Dec 2017 ]

 

Extract :

And I hope , it recommends amending Electricity Act whereby ,

Anyone can generate and SELL electricity , anytime and to anyone and at any price !

For reaching the target of 100 GW of Solar power generation by Nov 2022, we need to install 1.5 GW capacity EVERY MONTH for the next 60 month ( remaining 85 GW after current installations totalling 15 GW )

That would require an investment of Rs 10,000 Crore per month , every month for the next 60 months ! ( @ One Billion dollars per GW )

Part of this investment will have to come from Roof Top Solar projects , to be set up by :

      ·         An Individual home-owner ( who may also want to sell surplus power to a neighbour )

      ·         A Coop Housing Society wanting its huge unutilized terrace to produce solar power, for its members

      ·         A Business which will install these roof-tops at its own cost and is allowed to sell power to the residents of a building

               

      .        Millions of unemployed rural youth wanting to set themselves up in the “ Solar Electricity Selling “ business , with a small investment of Rs 25,000/ - and recharging :

               

        300 Watt HANS Solar PowerPacks with HANS Solar Briefcase

         https://www.youtube.com/watch?v=T3Kap722MxA&t=54s

 

 

          Surely , our Policy Makers cannot be unaware of the following benefits to millions of rural youths generating / consuming ( and , even “ selling “ ) solar power :

 

            #    No need to erect /maintain miles of transmission lines to those huts

                 #    No need to install and monitor Electricity ( Smart ) Meters

                 #    No need to collect monthly payments for the power consumed

                 #    In fact , no need to PRODUCE coal-based power elsewhere , in the

                       first place

                 #   No pollution due to power from coal-based power plants

                 #   No need to dig or import expensive coal / or worry about low plant-

                       load factor

                 #    No need to worry about power thefts / transmission losses !

                 #    No load shedding ( so common in rural areas ) for “ non-payment of

                       bills / low consumption “

                #   No need to worry about PEAK / LEAN load periods

                #   No need to keep Subsidizing Power for ever

                    Please, liberate our rural youth from the tyranny of this hundred year

                    old “ Electricity Act “ !

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

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /  26 Oct 2021

 

Related  Readings :

  Treading ( gently ) on Solar Power Trading…………………… .[ 18 Oct 2021 ]

   No Godfather for Rooftop Solar ? ……………………………………..[ 01 June 2021 ]

       Market-based Model for Renewable Energy ………………………[ 09 June 2021 ]

        Congratulations , Shri R K Singhji …………………………………….[ 19 Nov 2020 ]

   Congratulations , Shri Saurabh Patelji ……………………………….[ 31 Dec 2020 ]

 

 

 

P2P lending ; a 5 year journey

 

Context :

P2P lending machine firing on all cylinders amid slackened bank loan disbursals  /  24  Oct  2021   

Extract :

It has never been better for peer-to-peer (P2P) lending platforms, which are seeing a considerable increase in the number of people wanting to lend or borrow money. While slackened loan disbursals by banks and other institutional lenders have driven borrowers to peer-to-peer lenders, low fixed-income returns are prompting rich investors to lend money on these platforms at rates ranging from 10% to 18% per annum.

P2P lending is the practice of lending money to individuals via an online platform that connects lenders with borrowers.

This mode is useful for both lenders and borrowers because the former can earn a higher interest rate (than bank savings account or many other debt instruments) and the latter can obtain funds (unsecured loans) at lower rates than what banks or nonbanking financial companies (NBFCs) offer.

India has nearly 20 P2P lenders, with a combined outstanding loan book of around Rs 5,000 crore. These entities are regulated by the RBI.

We do nearly 130 crore worth of loan disbursals every month. Over the past one year, we have grown over 30 times, said Rajat Gandhi, founder and CEO of Faircent, which claims to have a loan book worth 2,000 crore.

Our volumes shot up after we rolled out a string of new products for both lenders and borrowers. At a portfolio level, we are able to deliver 12-15% returns, after adjusting for expenses and defaults, he adds.

The bulk of the lenders filling up the rosters of prominent P2P platforms are return-hungry retail investors and traders with surplus cash flows.

Several high net worth individuals and family offices are writing large cheques favouring borrowers on these platforms.

They are prompted to lend on platforms because their traditional fixed-income investments - such as bank fixed deposits, savings accounts, debt MFs, debentures and corporate FDs - are yielding 3-7% on an annual basis.

My Take :

 

Ø  P2P Lending Regulations  ……………………….[  29  April  2016  ]

 

Extract :

As against this, the cumulative total loans taken by some 630,000 borrowers from some 900,000 lenders in China , add up to Rs 11 Lakh*Crore from 2600 , P2P platforms !

 

I had only a cursory glance at the RBI guidelines but could not find answers to following questions :

 

*  Can " Companies " register on P2P platforms as either Lenders or as Borrowers ?

 

I suppose , RBI's  answer would be " NO " - even if it is a Peer-to-Peer transaction between two entities ( bypassing the regular middlemen ie: Banks )

 

Would that proscribe tiny " Start Up Companies " to join P2P platforms ?

 

Somehow, that does not sound right  !

 

*  Can American / European / Japanese citizens become lenders on Indian P2P

    platforms and lend money to     Indian borrowers ?

 

   Once again, I am afraid, RBI will say, " Sorry , No ! "

 

 Of course , it is safe to say, " No " since RBI does not want P2P phenomenon to " disrupt the existing banking channels "

  

Reason ?

 

Countries of the world making up almost 56 % of World GDP , have 0 % - 1 % interest rates ! That covers America / Europe / Japan

 

In some cases , there are NEGATIVE interest rates , meaning :

 

Instead of earning an interest when you put your money in Fixed Deposit in those Foreign banks , in these countries , banks will charge you a small fee to " safe-keep " your money !

  

And banks will pay YOU some small amount for taking out loans  !

 

Given this scenario , it is to be expected that rich citizens of these foreign countries would just LOVE to become lenders ( to Indian borrowers ) and earn, even as low as  5 % interest , on Indian P2P platforms  !

 

And Indian borrowers would LOVE to take loans only from such FOREIGN lenders who have very LOW expectations by way of interest !

  

Remember that today, an Indian borrower would pay around 15 % by way of interest to an Indian Bank for short term loans

 

As against this, the " Average interest rates " on P2P platforms hover around 8.6 % globally

 

So allowing Foreign individual citizens to register as lenders on Indian P2P platforms, would result in a win-win situation for both !

 

Who knows , the amount of foreign funds arriving into India through this route ( call it FDII - Foreign Direct Investments to Individuals), could even exceed FDI  !

 

 

QUESTIONS :

Ø  Can our P2P lending system, overtake the Chinese system ? If so, when ?

To be able to overtake the Chinese, we need following :

#   All payments above ( say for example ) Rs 500 / , must be made

     DIGITALLY – and based on UPI.

     Hopefully, in such a situation, 95 % of sale / purchase transactions will

     become DIGITAL . This will enable UPI to build-up every person’s LIFE

    LONG PURCHASE HISTORY ( goods or services )

     

#   Based on that, UPI to develop each person’s CREDIT RATING / CREDIT

     SCORE

     

#   When any person “ applies “ for a loan on any P2P lending platform, UPI

     will make available ( to that platform and for that loan application only ),

     concerned applicant’s CREDIT SCORE at that moment )

     

 #   This data will enable that P2P platform to approve or disapprove that

       loan application

#   In case of “ approval “, this CREDIT SCORE data will enable the P2P

      platform to specify ( automatically, through use of an algorithm ) :

      

             =   Loan amount being sanctioned

             =   Interest Rate applicable

             =   Moratorium  if any

             =   EMI / total period etc

 

Ø  Is there any indication of emergence of such a scenario ?

Yes . These are :

               [  A   ] 

               Birth of a Black hole ? …………………………..[ 18 Jan 2021 ]

 

               Extract :

             What data will not be able to escape this black hole ?

             STAGE  1

            To begin with, your entire PURCHASE HISTORY of a life-time, comprising :

                 WHAT you purchased - WHEN – from WHOM – at WHAT PRICE – HOW

                 much qty., – how PAID for

            STAGE 2

            Next, it will compile data about each unique item that you ever purchased

            – and some more :

                  Ø  Frequency of Purchase

                  Ø  Package Size

                  Ø  Brands ordered

                  Ø  Mode of Delivery

                  Ø  Mobile Number ( and, may be all of your CONTACT DATA – to entice

                      your friends / family )

                  Ø  Your MONTHLY CONSUMPTION RATE for each item ( and by using AI,

                       size of your family )

                  Ø  Whether you are single or married ( does not require sophisticated

                      software ! )

                  Ø  If married, number – and age – of your children

                  Ø  Your bank ( - and your bank balance ? You bet ! )

 

        [  B  ]

        Explaining e-RUPI ? But end up Confusing ?            [ 02 Aug 2021 ]

 

           Extract :

    In this entire process, is there ( even a remote ) possibility that either the Government or the Issuer’s Bank or the Service Provider’s Bank or NPCI , would be able to continuously / dynamically compile following Database ( without having to SNOOP or ask for anyone’s PERMISSION ) :

#    WHO    purchased  ( each beneficiary )

#    WHAT   purchased  ( goods or services )

#    WHEN   purchased  ( Date=Month-Year )

#   WHAT price   purchased  ( Rupees per Unit )

#   WHERE   purchased  ( details of each Service Provider )

I urge Smt Sitharamanji / Shri Piyush Goyalji to :

#  Prepare an OFICIAL / AUTHENTIC process of e-RUPI and publish on

    several online / offline media

#  Avoid any possible allegations of snooping / surveillance / compilation of 

    LIFE-LONG  BUYING  HISTORY  of millions of beneficiaries ,

    by making clear statements in Lok Sabha

       [ c ]

       Crypto : Corruption : Corona : China ………………..[ 17 June 2020 ]

 

         Extract :

        What will convince RBI / Government to issue OFFICIAL VIRTUAL

         CURRENCY ?

        Here is a brief ( non-comprehensive ) suggestion for proposed Law :

 

           Ø  While banning Private Crypto, introduce IndiaBit ( Govt Virtual Currency )

   Ø  With some effective date , withdraw all Paper Currency ( forget coins )

       Ø  Minimum denomination will still be called a RUPEE ( easy to convert from

           paper to digital )

 

           Ø  As of a date , bank balances in everyone’s bank account gets converted

               to IndiaBits

 

          Ø  Set time limit within which people can deposit their paper currency into

              banks for instant conversion into IndiaBits

               

          Ø  After set date, paper currencies held by anyone ( individual or any legal

              entity such as a Company ), loses all value and become illegal for any sell /

              purchase transaction

 

            Ø  All future financial transactions ( sell / buy of any goods or services ) can

                only be through mobile-app based DIGITAL transactions

 

             Ø  Since all transactions will become DIGITAL , Govt would have full / life-

                 time LOG of each citizen’s “ Sale or  Purchase “,

              [ Who bought What , When , from Whom , at What price , Where etc ] .

 

        Ø  Here is why automatic compilation of such CONSUMPTION DATA for the

            entire economy, will be a GAME CHANGER :

            

          Economic data will help policy  ……………………………… 16 June 2020

     I have no clue as to what mechanism could be used ( Inter-Currency Exchange

     Rate ) for payment for  Imports and remittances for Exports , if – and when –

     we introduce IndiaBit

 

     But if IndiaBit can ,

 

    #  To begin with bring out all BLACK MONEY ( stashed away as paper currency

        notes ), and deploy the same into mainstream economy for productive

        purposes , and

 

     #  Put a Full Stop to any future generation of Black Money ,

  

            -      then my proposal deserves a debate

 

 

with regards,

hemen parekh  /  hcp@RecruitGuru.com  /  25 Oct 2021

 

 

       

 

 

With regards,

Hemen Parekh  /  25  Oct  2021 / hcp@RecruitGuru.com