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
Showing posts sorted by date for query missing the wood. Sort by relevance Show all posts
Showing posts sorted by date for query missing the wood. Sort by relevance Show all posts

Thursday 15 February 2024

Surya Ghar Yojana : How to motivate DISCOMS

 


 

Dear Shri R K Singhji  ,

 

Over the past few days , I have sent to you following emails :

Ø  Surya Ghar : Missing the Wood for the Trees ? .. …………….15 Feb 2024

Ø  Found : Missing piece of Jigsaw Puzzle ……………………………. 05 Feb 2024

Ø  Thanks, Shri Modiji – from 250 Million Families  …………….. 04 Feb 2024

Ø  R K Singhji : Saluting a Revolutionary Reformer …………….. 02 Feb 2024

Ø  Correction : Suryodaya Yojana………………………………………….. 01 Feb 2024

Ø  Suryodaya Yojana……………………………………………………………….. 28 Jan 2024

Ø  Unleashing, Electrifying, Roof Top Solar Power ………………… 29 Jan 2024

 

In these e-mails, to overcome the resistance of the DISCOMS , I had suggested that they should get motivated through offer of some INCENTIVES ( apart from making good, their loss of revenue )


But I did not spell out precisely WHAT AMOUNT of incentive ( and from whose pocket )


I urge you to consider sharing the income generated from CARBON CREDITS / GREEN CREDITS, as follows :


#  For REC ……………… 70 % ( since, as per my suggestion, REC would bear total

                                           cost of each RTS )


#  For DISCOM…………30 % ( this could be restricted for first 3 years / thereafter

                                           NET METERING will kick in )

 

Of course, this ( generation / encashment of GREEN CREDIT ), is contingent upon

my proposal to make this a COMPOSIT scheme by linking it with distribution of

Electric Induction Stoves under National Clean Cooking Mission



Imagine :

1 crore families , each getting 12 LPG cylinder per year with Rs 300 subsidy /

 cylinder = Rs 3600 / year


Total “ Subsidy Saving “ from 1 crore RTS installations = Rs 3,600 crore / year


And will reduce LPG consumption by 1.8 Million tons / year !


This amounts to reduction in import cost = $ 1.28 Billion ( Rs 10,629  Crore / year ) !


Why is this ( COMPOSIT scheme ) all the more URGENT and IMPORTANT ?


Today’s Economic Times carries following report :

 

Ø  LPG imports surge 60% in five years

 

Extract :


LPG Imports :


Ø  2017-18………………. 11.4  MMT  (  Import cost  =  $   5.8  billion )

Ø  2022-23………………  18.3  MMT  (  Import cost  =  $ 13.3  billion )

 

This was due to rise in global LPG prices which surged .. 46 % .. in 5 years to $

  711.50 per metric ton


 Domestic production rose by just .. 4 % .. in 5 years ( to 2022-23 ), while

 consumption expanded by .. 22 % ..

 

With regards,

Hemen Parekh

www.HemenParekh.ai  /  16 Feb 2024

 

Related Reading :

MNRE may do away with CPSU’s involvement in Roof Top Solar program  … Mercom … 15 Feb 2024

 Extract :

The Minister had also said that the Solar Systems for households installing them on their roofs would be entirely free

Sources said that the recent increment in Roof Top Solar subsidy is the ONLY PROPOSAL that will stay effective under the program

Sources told MERCOM that MNRE, in an interaction with industry stakeholders, said that CPSU designated as the IMPLEMENTING AGENCY , may no longer be involved in executing the program

Surya Ghar : Missing the Wood for the Trees ?

 


 

22nd Jan :

PM Shri Modi announce Suryodaya Yojana under which 300 units / month of electricity will be made available to 10 Million “ Poor / Middle Class “ households

01 Feb :

This was also mentioned in the budget speech of Finance Minister ( Budget allocation of Rs 10,000 crore )

2nd Feb :

MNRE minister Shri R K Singh announced :

The government will bear the entire cost of installing solar rooftop systems as part of the Pradhanmantri Suryodaya Yojana, which will offer up to 300 kilowatts of power monthly to one crore low income households.

A low income household is being identified as one whose monthly electricity consumption is below or up to 300 kilowatts or unit.

Centre will bear the entire cost of installing rooftop solar (RTS) systems.

The householder does not have to go anywhereThe excess units that are generated will be used to pay for the loan. We calculate that the loan will be paid in 10 odd years

At present, the CPSEs are in the process of reaching out to such households and carrying out surveys for available rooftop space. “

13 Feb :

PM launches “ PM Surya Ghar: Muft Bijli Yojana “ . PM said :

Central government will guarantee NO FINANCIAL BURDEN on the people by providing significant subsidies directly to their bank accounts and offering highly concessional bank loans

PM Modi posted on X, formerly Twitter :

 

 

In order to further sustainable development and people’s wellbeing, we are launching the PM Surya Ghar: Muft Bijli Yojana. This project, with an investment of over Rs. 75,000 crores, aims to light up 1 crore households by providing up to 300 units of free electricity every month.

 

In order to popularise this scheme at the grassroots, Urban Local Bodies and Panchayats shall be incentivised to promote rooftop solar systems in their jurisdictions. At the same time, the scheme will lead to more income, lesser power bills and employment generation for people.

 

Let’s boost solar power and sustainable progress. I urge all residential consumers, especially youngsters, to strengthen the PM - Surya Ghar: Muft Bijli Yojana by applying at- https://pmsuryaghar.gov.in


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

So , what is missing ?

( A )    Cost to Consumer

Ø  Even on the portal , there is no explicit mention of the amount of the subsidy.

      Earlier it was stated that the total investment would be Rs 125,000 crore. Now it is estimated at Rs

      75,000 crore. This leads me to believe that those 1 crore consumers will have to pay ( by taking out

      loans , if required ) , Rs 50,000 crore

 

      Divided by 1 crore installations , this works out to :

      #  3 Kw RTS costing Rs 125,000

      #  Of this, consumer to pay Rs 50,000 , and REC / CPSU / SPVs to subsidize Rs 75,000 ( 60 % )

This is in complete contradiction of the announcement made by Shri R K Singh on 02 Feb , viz :

      Centre will bear the entire cost of installing rooftop solar (RTS) systems.. The householder does

       not have to go anywhere “

 

Dear Modi Saheb :

In my email of 28 Jan 2024 ( Suryodaya Yojana ), I had requested you to give 100 % subsidy to consumers ( totally FREE give-away ), with REC / CPSU / SPVs bearing the entire cost .

NO need to await completion of all those formalities and confirmation from Consumer / REC - SPV / DISCOM / Installer etc. for transfer of subsidy to consumer’s bank account

I urge you to consider this request

 

( B )  Merging of Suryodaya Scheme with National Clean Cooking Mission

In my aforementioned e-mail , I had pointed out :

#  A family will use only 80 units for lighting-Fans- Fridge etc, leaving 280 units / month, un-utilized

#  This surplus can easily suffice to power a 1.5 Kw Induction Electric Stoves , 20 lakh of which are currently

    under distribution by EESL

#  This utilization will, not only save 12 cylinders/year of subsidized LPG , it will generate enough Carbon

    Credits ( to the credit of REC / CPSU / SPVs ) to recover entire investment of Rs 1.5 lakh*crore , within 3

    years !

   From 4th year onwards, this amount will be PROFIT for these financiers !

 #  Cost of stove will get recovered in just 3 months !

 

( C )   Incentivizing DISCOMS

In the latest announcement , there is no mention of any compensation to DISCOMS for their loss of revenue

In absence of this , the scheme is bound to be resisted by DISCOMs . The “ feasibility approval “ from DISCOM will take months ( I just applied online on the portal yesterday and will keep you informed when I get that approval – or rejection )

I am afraid , without reimbursing DISCOMs for loss of revenue , this scheme will be a non-starter !

 

( D )  Insufficient Roof space

In my earlier blog (  Thanks, Shri Modiji  … 03 Feb 2024 ), I had pointed out that most buildings in towns / cities, are multi-storied ( 5 – 25 stories ) with 20 – 100 flats

And their roof area is simply INSUFFICIENT to provide 3 Kw ( 300 sq ft ) RTS installations for all flats. Roof area is barely enough to provide RTS to 10 % - 20 % of the flats

Whether these flats are ownership ( with a Co-op Housing Society ) or rented ( from a landlord ), it will be impossible to decide ( by whom ? ) , who should get the RTS – and who will be deprived

To prove my point , I just checked up with a few friends and found following figures :

 

 


Family Location

Ave Units/Month

No of flats in Bldg

Terrace Area( Sq ft )

@300 sq ft ( 3Kw ),terrace area sufficient for no of flats

 

 

 

 

 

Andheri

450

24

1500

5

 

 

 

 

 

Vile Parle

500

20

1500

3

 

 

 

 

 

Powai

350

54

3000

10

 

 

 

 

 

Kandivali

350

16

2200

7

 

 

 

 

 

Chandivali

220

49

2000

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Although, in case of some buildings, it may be STRUCTURALLY possible to extend the roof area by cantilevered TRUSSES on all 4 sides of the building, it will cause loss of natural daylight for flats on the top floor – and objected to . Even if agreed by all the residents , it will take months to get necessary permissions from the concerned authorities and some more months to carry out the changes

 

It is for this reason that in my earlier e-mail I had suggested :

Let REC / CPSE / SPV , put up large Solar Farms ( 1 GW each ) on Government lands, close to each town / city

Then feed that power to the DISCOM catering to that city ( free of cost )

And , in turn , DISCOM to supply that power ( may be adding a very small “ carrying charge “ ) to families living in multi-storied buildings .

And finally :

On the portal , in the REGISTRATION FORM , an applicant is asked to provide following data :

Select your State

Electric Distri. Co

Electric Consumer No

Mobile Number

E Mail Id

 

DISCOMs already have this data for each and every consumers ( look up any monthly Electricity Bill of any DISCOM )

Why ask this data from an applicant ?

In fact, why ask ANY ONE to “ apply “ in the first place ? To me, it seems totally UNNECESSARY

Every DISCOM has an elaborate DAABASE of its consumers . In matter of seconds , a search will produce a list of those consumers whose last 12 months average consumption was LESS THAN 300 UNITS

And since full address of each consumer is also available with the DISCOM , it can tabulate for each building :

Ø  Which ( and how many ) consumers are ELIGIBLE for the scheme

Ø  Which are NOT ELIGIBLE

All that DISCOM has to do is to send out appropriately worded E Mail ( Scheme / Purpose / Funding / Eligibility Criteria / Benefits /  Obligations etc ) to the eligible consumers, requesting them to click :

#  Yes , I am interested to avail of this scheme. Please send someone to my residence to conduct FEASIBILITY study

#  No , I am not interested

If a consumer does not have an email id , then a printed letter can be sent through post, along with next monthly bill and the customer can be advised about the letter through SMS / Whatsapp ( I presume that all customers have mobile phones )

 

Dear Shri Narendrabhai ,

Only yesterday , while addressing the Global Summit , you spoke about leveraging technology to effect changes

Surya Ghar Yojana is a shining example of that proclamation

Implementing my suggestions will make this yojana , a BENCHMARK for GLOBAL SOUTH

 

With regards,

Hemen Parekh

www.HemenParekh.ai  /  15 Feb 2024

 

 

Monday 22 June 2020

Autobiography of an Appliance



Some 60 years ago, teachers who set questions for “ English Language “ exam paper for 10th standard , were fond of selecting following type of question for writing an Essay :


“ Write an autobiography of a Pencil  ( or a Shirt or a Table …… ) 



Predictably that essay ( answer by students ) would  start with :


“ I was born as a teak-wood sapling in the jungles of Burma….. “ (  before they renamed Burma )



Students just loved this kind of a question since they had mugged up the answer (  affectionately called “ LBH = Learn By Heart “ in  “ Solved Question Papers “,   published by Kutmutia )



I am not aware of the present-day preferences by exam question paper setters and the students



But for some time now, product manufacturers in India are being asked to write :


  Autobiography of an Appliance



Let me explain


There is a demand from all and sundry, that Indian product manufacturers should place a sticker / label, “ COUNTRY  of  ORIGIN “ on each piece manufactured / sold



Hear this voice :




Extract :

Trader's body CAIT has urged Commerce and Industry Minister Piyush Goyal to make it mandatory for every e-commerce portal to mention 'country of origin' on each product sold at their platforms, so that buyers can make an informed decision.

Most e-commerce portals are selling Chinese goods, about which the consumer remains unaware, said the Confederation of All India Traders (CAIT), which has launched a campaign for boycott of Chinese goods

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

To me, this concept of “ Country of Origin “ seems like a very nebulous matter ( not unlike CRAB nebula )


Now , even in these days of “ Global Supply Chain “, it is quite possible that the humble pencil’s “ Country of Origin “ remains Burma – all the way from that piece of wood encasing a slender piece of black lead, to its printing / packing / dispatching


But it gets very complicated to determine the “ Country of Origin “ of ( say ) a domestic appliance such as a Fridge / Microwave Oven / Dish Washer etc., which has many processes ( stages of Value Addition through inputting of local manpower )


Question :

How much “ Value Addition “ ( as a percentage of total cost of production or selling price ) should take place in India, to qualify an appliance for “ Made in India “ tag ?


I am unaware of any official / authentic definition

To get a clear picture of how “ Value Additions “ take place in a chain of countries , before an appliance gets delivered to your home, consider the following ( over-simplification ) :

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

   Value-Addition is a Many Splendored Thing – in today’s Global Supply Chain

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

PROCESS STAGE
OUTPUT
( at each stage of Process )
Country supplying Inputs to Processing Country
PROCESSING COUNTRY
( where value addition takes place using local manpower )
INPUTS at each Stage

( Value Addition )
MANPOWER COST as % of final total cost

( Value Added )






1
Iron Ore

India
Manpower
5 %
2
Ingots
India
Australia
Manpower
10 %
3
Bars
Australia
China
Manpower
10 %
4
Components
China
Indonesia
Manpower
10 %
5
Sub-Assy
Indonesia
Singapore
Manpower
25 %
6
Assembly
Singapore
South Korea
Manpower
30 %
7
Packaging and Dispatch
South Korea
India
Manpower
10 %










TOTAL
100 %


Obviously the scenario described above is an “ Over Simplification “ considering that , at each “ Stage of Processing “ ( in a given country ) , “ Inputs “ may come from many other countries ( not just one country )


Since I was confused about the exact “ Methodology “ employed by our Government to declare :

Ø  This product is “ Made in India “ ( ie; “ Country of Origin “ is India ) , and

Ø  This product is “ Made in China “,


-      some  2 years ago , I sent following blog / email to our Policy Makers :

E Commerce Definition : a Space Ship ? …………………………………[ 05 July 2018 ]


Extract :

And , as far as defining what is “ Made in India “ is concerned , I believe , government goes by “ Percentage of Value Addition “ locally

But, this is a very difficult and time-consuming exercise

Even when possible, its result holds good for a very short period in a dynamic situation

A manufactured “ local product “ could have hundreds of components ( both, local and imported )

And those “ local components “ could have “ imported “ raw materials or intermediates

These days , a product could be,

*  patented in one country ( concept )

*  designed in another country

*  developed ( detail manufacturing drawings  ) in another country

*  components made all over the World

*  Sub-Assemblies ( of those components ) carried out in another country

*  Final Assembly done in another country

*  Packaging done in another country

*  Offered for sale on ONLINE e-commerce portals in another country

*  Marketed by agencies located all over the World

*  Delivered using manpower / drones / supply chains of several countries

*  Financed by funds from all over the world ( Interest Costs )

At which “ Level  “ of Value Addition , does a product become “ local “ ?


And if I download a " Product Drawings / Design " over the internet and then " 3D Print " it in my garage ( using " imported " resins ) , then is that a " local " product ?

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


And 4 years ago, I sent following blog / email to Cabinet Ministers  :

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




Extract :

Entire cycle of Designing / Manufacturing / Marketing / Selling / Order-taking / Delivering / After-sales Servicing  / Logistics / Collecting Payments / etc , will get spread so thinly across Countries / Continents / Companies / Individuals, that it will become next to impossible to,

Ø  keep track of " WHO "

Ø  is adding " WHAT " value to the process 

Ø  and " WHEN " 

Ø  and from " WHERE "   

No one will be able to unravel this GORDIAN KNOT !


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

Dear Shri,


B C Bhartiaji ………………………[ President – CAIT  /  president@cait.in  ]


Praveen Khandelwalji ……….[ Secretary General – CAIT  / sec-gen@cait.in  ]


There are news reports that this “ Country of Origin / Made in India “ draft policy will soon be put in public domain for comments

I hope my comments above, helps you in framing CAIT comments


With regards,

Hemen  Parekh

hcp@RecruitGuru.com   /   23  June  2020