Another { Welcome } First

In his budget speech yesterday, Shri Jaiteley said :

This budget is unique in that , for the first time ,

·          It merges the erstwhile Railway Budget with the main budget

·          It is being presented on 01 February instead of on traditional 28^th Feb

·          It does away with the distinction between the Plan and the Non Plan expenditure

What the media – and most listeners – missed , is his passing reference that , for the FIRST TIME ever , this budget annexure carries  OUTCOME  TARGETS  for a few Ministries / Departments

Thank you , Shri Jaitleyji , for

*  accepting my suggestion ( outlined in my following E Mails ) and introducing an  UNPRECEDENTED  REFORM , having long term consequences on our SYSTEM OF GOVERNANCE  

*  making Ministers accountable / answerable for the actual ACHIEVEMENTS vs TARGETS , set in advance for their Ministries

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AnUnprecedented Budget Reform   [  09  Dec  2016  ] 

[http://myblogepage.blogspot.com/2016/12/an-unprecedented-budget-reform.html ]

Budgetingby Objectives    [  05  Dec  2014 ]

[ http://myblogepage.blogspot.com/2014/12/budgeting-by-objectives.html  ]

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Of course , your critics will argue that ,

{A }   None of the  TARGETS  are “ QUANTIFIABLE / MEASURABLE  “

{ B }    There is no mention of which THIRD PARTY agencies will MONITOR THE ACTUAL ACHIEVEMENTS { eg: CMIE / ICWA / PRAJA / ADR / ArthKranti / IIM / ISB etc }

{ C }   Where / When / How often , will the  ACTUAL PERFORMANCE  get reported

Dear Shri Jaitleyji :

While welcoming such well-meaning criticism , ask them for specific suggestions on how / what they would want you to do in respect of A / B / C , in your next budget

Then tell them :

This  REFORM  is  PATH-BREAKING .

What is important is that a beginning has been made

   

EXTRACT FROM ANNEXURE OF BUDGET 2017-18 :

“  OUTLAYS   FOR   OUTCOMES “

PREFACE

The “OUTCOME BUDGET” reflects the endeavour of the Government to convert "Outlays" into "Outcomes" by planning expenditure, fixing appropriate TARGETS and quantifying DELIVERABLES of each scheme.

The “OUTCOME BUDGET” is an effort of the Government to be transparent and ACCOUNTABLE to the people.

In addition to an Executive Summary, the OUTCOME BUDGET 2016-17 contains seven separate sections relating to seven Demands under Ministry of Finance for which the OUTCOME BUDGET is to be prepared.

OUTCOME:-

The payment to IDA will assist World Bank Group to carry out programs of Poverty Reduction in IDA countries

 OUTCOME:

The payment of instalments of India's subscription to the sixth General capital Increase of AfDB is to fulfil India's international obligation and to maintain India's voting share in the bank.

OUTCOME:

The payment to AfDF is to assist Poverty Reduction in African Countries through Projects and Programs of the AfDF.

OUTCOME:

After the completion of subscription to these shares by India and other countries, India will become the 7th largest shareholder in IBRD with voting power of 2.91%. Before this revision, India's voting power was 2.77% at 11th position among shareholders.

OUTCOME:

IFAD is a Specialised Agency working to enable rural poor to overcome poverty and hunger. IFAD's policies and programme have great relevance at a time when Poverty Eradication remain a major concern of the International Community. India's contribution will help further to this cause. India is also utilising the resources, and domain knowledge and expertise of IFAD in order to achieve the goal of eradication of poverty.

OUTCOME:

India's grant fund is being utilized to assist AfDB and ADF in the preparation and implementation of development projects and programmes.

OUTCOME:

The GAVI is a public-private global health partnership committed to saving children life by access to immunization. India is benefiting from this programme. Outcome: As of 30th October, 2014 South-South facility exchange has involved India as a knowledge provider and recipient making India one of the top 10 countries both as recipient & provider.

OUTCOME:

India's grant fund is being utilized to assist AfDB and ADF in the preparation and implementation of development projects and programmes.

02  Feb  2017

www.hemenparekh.in/ blogs

Will Holograms beat H1B Visa Ban ?

Poor Mr Trump !

He can build a huge wall on the US-Mexico border , but how will he build a “ Wall – in – Sky “ ?

To prevent Indian geeks from taking over jobs from Americans , he plans to raise to $ 130,000 per year , minimum salary payable to H1B visa holders , whether employed by Indian companies or by American companies

With this , he hopes to replace 350,000 Indian Visa holders , currently paid $ 60,000 per year ( with Americans at a salary of $ 100,000  ? )

 MR TRUMP KNOWS THAT :

·         India’s IT industry employs 3.7 million people ( mostly software guys ) of which ,     barely 10 % are posted in USA

·          

·          Its annual turnover is about $ 150 billion

·          

·          Of this $ 108 billion is from “ outsourcing “ by foreign companies

·          

·          Most of this revenue comes from its US operations

·          

·          At $ 60,000 per year , Indian H1B visa holders , earn $ 21 billion / year

·          

·          At $ 100,000 per year , replacing them with Americans will cost the Employers, ( both Indian and American ) , $ 35 billion

WHAT WE KNOW :

·         This bill ( if it becomes a law ), will certainly impact the Indian IT industry in short term

·         It will force Indian IT industry to find customers in other foreign countries and reduce its dependence on USA

WHAT WE NEED TO DO ? :

·         Learn to thrive on problems . Treat this as a “ blessing in disguise “ . Turn this into an opportunity to “ re-invent “ our IT Industry

·          

·         Not merely “ allow “ but pro-actively “ enable “ our IT industry to become ,

·          

“ BackFactory of the World “

{ http://myblogepage.blogspot.com/2015/09/back-factory-of-world.html }

·         Grant these Back Factories , an “ Infrastructure Industry “ status

·          

·          Enable BLACK MONEY investments into such “ Back Factory Units “,through a limited period AMNESTY SCHEME , outlined in my earlier blog

·          

·         Exempt these BACK FACTORIES from Corporate / Personal Income tax for 10 years  

·          

·         Enable construction of 1000 “ Back Factory Parks “ , each having 50 units , along the lines of Coastal Employment Zones proposed by Shri Arvind Panagarhia ( Vice Chairman , NITI Aayog

·          

·         These 50,000 units will provide , at least , 500,000 jobs

·          

·         LIKE SOUTH KOREA , EQUIP THESE BUILDINGS WITH 1 GBPS INTERNET BROADBAND

HOW WILL THIS HELP ? :

·          These BACK FACTORY units will deliver REMOTE SERVICES to customer-companies all over the World, through

“  HOLOGRAPHIC CONFERENCING “

Imagine 500,000 Indian geeks swarming virtually in every American office !

And no way for Mr Trump to stop them !

[  Those having any doubt , may want to look up :

The world's first HOLOGRAM protest

[http://www.dailymail.co.uk/news/article-3038317/The-world-s-HOLOGRAM-protest-Thousands-join-virtual-march-Spain-against-law-banning-demonstrations-outside-government-buildings.html ]

Dear Narendrabhai :

You do not need any convincing re this “ GAME CHANGING “ concept since you pioneered it yourself by addressing 800 election rallies through your own holographic projection during 2014 election !

Please put in a word to Shri Arun Jaitleyji as he gets up to deliver his budget speech two hours from now !

01    Feb  2017

www.hemenparekh.in / blogs

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Added on 31 Oct 2020 :

PORTL  Holograms

   

  

  

JUST ONE MORE STEP LEFT

NEW DELHI, JANUARY 27: 

“We are going to start Aadhaar Pay. With this, people will not require to carry their mobile phone for payments. They can visit any merchant, share their Aadhaar number and verify themselves using biometrics to pay and receive money,” Ravi Shankar Prasad, Minister of Electronics and IT, said here.

The Minister also said the Bharat Interface for Money (BHIM) app has also been integrated with the Aadhaar Enabled Payment System on Thursday.

Dear Shri Prasadji :

For those 100 Crore Indians who cannot enter their Aadhar Number in the Smart phone , please consider taking the following next – and ultimate / inevitable – step , outlined in my earlier email dated 03 Dec 2016 :

Reincarnation of Smart Phone ( with SARAL app )

Why do people need to " OWN " a phone ( AEPS pre-installed ), in order to be able to " USE " it ?

People who make their purchase payments using Credit / Debit cards , do NOT own their personal PoS machines / Card Readers !

The SELLER owns those machines , kept on his counter

And allows the BUYERS to use these while making payment

With AEPS duly " integrated " with Aadhar-based BIO-METRIC device , linked to user's bank account , there is no technical reason , why a BUYER cannot use an AEPS installed phone , lying on the counter of the SELLER !

When he is carrying his EYES - and his Aadhar Card - there is no need for him to " OWN / CARRY " his own EYE - READER ( smart phone ) , wherever he goes !

Just look into the camera of the SARAL phone lying on the sales counter , speak your Aadhar Number , then speak payment instruction !  As SARAL ( simple ) as that, until smart phones start reading your unspoken thoughts !

And putting a 100 million SARAL phones ( pre-installed with AEPS ) , into the hands of SELLERS , is much easier /faster / cheaper than placing 500 million phones into the hands of USERS !

With this innovation ( shrinking and morphing a bulky PoS / Card Reading Device to a tiny SARAL phone , pre-installed with AEPS ) , there is an opportunity for manufacturers of these devices to " re-invent " themselves !

Now is the time to make themselves obsolete , before someone else does !

If they don't , they are cooked !

And , since Credit / Debit card Issuers too are on the verge of " going into oblivion " , they would be happy to tie-up with PoS / Card Reader manufacturers , to implement my suggestion

They can still survive , if they ensure that those MORPHED / SHRUNK devices ( called SARAL phones ) , enable millions of illiterate Indians to make their payments , just by " talking to the phone ( lying on the SELLER's counter ) " , in a language of their choice !

If they succeed in pulling off this innovation ( of spoken instructions ) , they have a good chance to beat existing Mobile Wallet companies

Dear Shri Amitabh Kant :

If asked , Sundar Pichai ( Google ) would gladly combine " Google Talk "  with " Google Translate " , to come up with a  " SARAL " app which can be integrated into AEPS !

This  SARAL  avatar of a Smart phone , has tremendous scope for export all over the World .

I hope , the Members of the Chief Ministers Committee , find time to debate my suggestion

31  Jan  2017

www.hemenparekh.in / blogs

Solar Power at Rs 1 per Kwh ?

Today’s MINT carries following news report :

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 Govt mulls introducing fixed-cost component in renewable energy tariff :

The idea is to prevent distribution companies (discoms) shying away from procuring electricity generated by such projects, as they will have to pay the fixed tariff component even if they don’t buy the electricity contracted for.

Such a tariff mechanism already exists for electricity from conventional sources such as coal and gas which has two parts—A FIXED COST, WHICH IS THE INVESTMENT INCURRED TOWARDS POWER GENERATION EQUIPMENT, and a variable cost or the cost of fuel.

“The idea is to fix a certain component which will allow a renewable energy project developer to SERVICE THE DEBTS even if the distribution companies (discoms) back down from buying electricity. It is under consideration,” said a government official, who too sought anonymity.

In case of solar power ,

·        Cost of fuel ( sunlight ) is ZERO

·        Cost of Maintenance is almost ZERO ( wash the panels )

·        Cost of Investment  is “ Interest on borrowed funds “

·         

How low can this “ fixed cost “ ( servicing the debt of the company generating solar power ), go ?

In California , when interest cost went down to 1 % , fixed cost of generation went down to 4 cents / Kwh ! ( Rs 2.7 )

Website of  MASDAR (http://www.masdar.ae/ )  , talks of latest installation where this has gone down to 2.6 cents ( Rs 1.74 / Kwh ) !

In India , we are planning to add Solar Power to the tune of 100 GW by 2022

How can we make that happen ?

And , can we make that happen at Re 1 per Kwh ? or less ?

We can , if  CAPITAL COST  is  ZERO !  No interest burden !

How ?

It can happen if NDA government musters enough courage to implement what I have been suggesting for past 2 years, viz:

  *  Government declares units belonging to " Solar Power ( Panel Mfr / Power Production &

    Distribution / Ancillary Mfr  ) " as    a "  SOS " industry

*   Units will need to register as such with Department of Company Affairs ( DIPP )

*  Units will be exempt  from paying Corporate Income Tax for 10 years , on whatever

   income they earn ( only those starting operations latest by 31 March 2018 )

 *  No questions will be asked as to the " source " of funds invested in the shares of such

   units ( a kind of Temporary Amnesty Scheme - 01 April 2017  till 31 March 2018 - to

   channelize BLACK MONEY into creation of PRODUCTIVE  / NON-POLUTING assets )

 *  Units cannot engage in any other Industrial / Commercial / Financial activities

 *  Units cannot declare any dividends to share-holders for 10 years

These are just broad outlines and details need to be worked out

If there is political courage to pull off such an initiative , government will NOT need to allocate ANY AMOUNT !

NO NEED TO SUBSIDIZE THESE UNITS OR THE USERS , WITH THE TAX PAYERS' MONEY !

Remember , how , only a few months back , tiny Indonesia managed to collect $ 300 billion of its Black Money , by levying tax ( no penalty ) of just 4 % !

And with this kind of  INCENTIVE WINDOW ( to convert BLACK into WHITE ) , expect

*  Hundreds of SOS Units to spring up before 31 March 2018

*  They will have ZERO cost as far as servicing of EQUITY is concerned ! No dividends !

*  They will not need to borrow funds from banks and pay interest ( no danger of NPA ! )

*  They will compete with each other fiercely and ( as it is already happening in USA ) ,

   start offering roof top installations, absolutely FREE, and selling the generated power at

   20 paise/Kwh, for 10 year purchase agreement and with a 5 % tariff reduction per year !

   We can look forward to witnessing similar competition among large , land-based ,  solar

   power installations which will be the main suppliers to large commercial establishments /

   industrial factories / infrastructure projects / Electric Vehicle Charging stations , etc

  

Just imagine

*   how much, our LOW ENERGY COST ECONOMY can make us , INTERNATIONALLY  COMPETITIVE !

*  the rise in GDP !

*  the possibility of being able to export our surplus power to neighbouring countries

*  Being able to replace 6 million petrol / diesel vehicles with EVs by 2020 , due to

   easily available charging stations on every street corner

*  Reduction in pollution by shutting down of hundreds of existing fossil fuel based power

    plants , whose utilization will drop below 10 % by 2022 ( as against National Electricity

    Plan expectation of 48 % , and a un-viability threshold of 55 % )

30  Jan  2017

www.hemenparekh.in / blogs