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 17 July 2017

Remembering King Canute !



There is no need to repeat this story but I could not help getting reminded of the same when I read following news report ( Economic Times / 17 July ) :




Transport Min won’t Board Niti’s Car-Pooling Plan

·          
 The transport ministry is not in favour of Niti Aayog’s suggestion that taxi aggregators should be allowed to rope in private cars to increase the availability of vehicles for passengers.


The ministry’s view is that vehicles used for commercial operations are registered as such and there is no such provision in the Motor Vehicles Act to allow private cars to run as app-based taxis, including operations such as ride-sharing and pooling.


“We have to protect the interests of over 5 million taxi owners who have paid commercial duties and permit fees to run taxis. Their employment cannot be endangered and also allowing private cars would be something like doing away with the concept of taxis,” a top government official said.


Currently, commercial vehicles attract higher duties, insurance premium and other permit charges than private vehicles.


The official said the safety of passengers using such services also has to be kept in mind.


“Even if it’s a lot of convenience, various legal aspects also have to be kept in mind. Even if it’s allowed, some registration mechanism for such cars has to be found,” the official added.


India is examining the use of private vehicles as shared taxis in an effort to reduce car ownership and curb growing traffic congestion in major cities.


Niti Aayog, which is chaired by Prime Minister Narendra Modi, has partnered with companies including ride-sharing firm Uber Technologies to assess the economic and environmental impact of using private cars as taxis, a government official involved in the process said.

The idea is to set up a clear and reasonable regulatory framework for ride-sharing so it allows companies to operate in India without ambiguity.

Such a move could dent car sales in India, where the ownership ratio is low compared with other countries.

There are about 20 cars for every 1,000 people in India.


But then , Shri Amitabh Kant ( CEO- NITI Aayog ) has repeatedly said :
“ Regulatory framework always lags behind technological innovations and is, perpetually , in the catch-up mode “

Judiciaryin the footsteps of Technology ?



He is a patient man who perseveres – never gives up !
And he is backed by a visionary like Shri Anand Mahindra , whose Company is also moving in the direction of ride-sharing cars !

18  July  2017




Sunday 16 July 2017

Who is Clueless ?



There are many subjects ( eg : Crypto-Currency ) and many times ( right NOW ) , when I am clueless !


For example , on the subject of “ JOB  GENERATION “ , I felt clueless when I read the following remarks by Shri Panagariya ( Niti Aayog ) , as reported in Hindustan Times ( 11 July ) :




Panagariya said underemployment is probably the biggest economic challenge that India faces right now and added that rapid growth can be achieved by moving workers OUT OF AGRICULTURE to INDUSTRY and from SMALLER enterprises to BIGGER ones



“ Underemployment is probably the biggest economic challenge we face….. as many as 44.2 crore ( ie; 442 million ) or 91.2 % of the total, were employed in AGRICULTURE or enterprises with NINE or fewer workers


Panagariya said that excessive employment in AGRICULTURE ( 46.9 % ) with lower output ( 18 % ) was slowing growth, and tackling that is the way to achieve growth


“ If we set the output per worker in AGRICULTURE equal to ONE ( 1 ) , then output per worker in INDUSTRY is FIVE ( 5 ) and that in SERVICES is  ( 3.8 ) “ , he said




I wonder :


Can Shri Panagariya ( an eminent economist ) , confirm ( or correct ) , the following figures of INVESTMENTS required for generating just ONE JOB , in different types of BUSINESSES / INDUSTRIES ?


I am clueless as to how much CAPITAL is required to generate ONE JOB in AGRICULTURE !




[ Source :




How much CAPITAL ( fixed + working ) would be required to give jobs to all of them ?



Following are my guesses to create just  ONE JOB  in :


·         Pan Beedi shop ( self-employed )………….Rs   1   lakh


·         Tiny grocery shop ( owner operated )…. Rs   3   lakh


·         Barber shop …………………………………………..Rs   5   lakh


·         Pharmacy shop……………………………………… Rs   10  lakh


·         Auto Repair Garage………………………………. Rs   20  lakh


·         Small Factory ( 50 people )………………..   Rs   50  lakh


·         Medium Factory ( 100 people )……………. Rs   75  lakh


·         Large light engineering factory………………Rs  100  lakh ( Rs 1 cr  )


{ Just proposed SAMSUNG factory in UP will invest Rs 5,000 cr and , at full capacity , employ 5,000 people }



·         Machine Tool Manufacturing factory………………….   Rs  2  crore


·         Heavy Engineering factory ( Pressure Vessels )…. Rs  5  crore


·         Service Industry ( based on IT / internet )…………. Rs  50 lakh


And , if my figures are even approximately CORRECT , then from where are we going to find the Capital required to move 100 million workers ( out of 442 million ) from Agriculture to Industry ? 

Incidentally , which Industry ( or industries ) have enough DEMAND to absorb 100 million workers ?



Of course , I do not expect Shri Panagariya to agree with my following suggestion to find
those FUNDS , without RAISING TAXES or BEGGING for FDI :


Why  a Begging  Bowl  ?  ( 08  May 2017 )



17  July  2017



Slum Free by 2022 ? Forget it !



Hindustan Times ( 12 July ) carries following news report :


“ Miles to go before govt can make city slum-free by 2022



HIGHLIGHTS :


·         Target for making Mumbai slum free…………………………   2022


·         No of slums under BMC jurisdiction………………………………. 7 Lakh


·         Slums surveyed in past 2 years…………………………………..   20 %


·         Area to be covered…………………………………………………………  3307

 hectares

·         Slum clusters surveyed so far………………………………………   363 ( 1.42 L hutments )


·         Re-development of clusters to start after complete survey


·         Bio-metric details of residents being compiled to record the eligibility of all slum dwellers for FREE HOUSING under the SRA scheme





Why such a SLOW PROGRESS ( which may take another 10 years to complete ? )


·         Govt lacks the staff to conduct slum-to-slum survey


·         Slum dwellers are reluctant for Bio-metric ID


·         Slum dwellers just don’t believe anything will ever come out of this exercise





What is the SOLUTION ?


·         Some 50 km from Mumbai , FIRST build a Satellite City with enough 300 sq ft flats ( to be given FREE ) to accommodate the 7 lakh slum dwellers


·         In the same city , also offer plots ( FREE ) , to businesses / industries , in strict proportion to the “ No of Jobs “ they will offer to the slum dwellers that get shifted ( without jobs nearby , no slum dweller will ever shift out from present location / nor can he be expected to daily commute 50 km for a job ! )


Availability / allotment of FREE plots ( - and , may be ELECTRIC POWER ? ) , will attract businesses to move out of crowded Mumbai ( where Salaries / Wages are sky-rocketing ) . Such migration of businesses / industries , will lessen the burden on Mumbai’s infrastructure


Salaries / Wages of 5 years ( for the numbers of jobs promised to be created by the enterprise wanting those FREE plots ) , must be deposited in advance by the allotted , with the State Government


Govt to transfer monthly salaries / wages ( through DBT ) into the bank accounts ( linked with Aadhaar ID ) of the appointees , after appropriate safeguards


This will ensure availability of JOBS to the slum dwellers , BEFORE they move to the new city , eliminating the biggest resistance to shifting ! 






Can this be ACHIEVED ?


Yes , if we have the political will like that of the China – and , of course the resources !


Look at the following report :



10  April  2017  }




Beijing is one of the most crowded cities in the world—home to 24.9 million people in the metro areas. It's also one of the smoggiest, with some of the worst air quality in the world. In an effort to combat the city’s rapid growth (an average of 600,000 residents per year flocked to the city between 2000 and 2013) and the traffic congestion and pollution associated with it, China plans to build an entirely new city to take the pressure off its capital, Curbed reports.

The Chinese government recently announced a regional economic project called the Xiongan New Area, which will be a new metropolis built about 60 miles south of Beijing.


According to China Daily, Beijing will remain the functional capital of China, but the new city will take over some of the general economic functions that have so far been concentrated within Beijing.


The idea is that some of Beijing’s industry and business will move to Xiongan, and with it, some of its population.


With jobs no longer concentrated so densely in Beijing, people will be able to live closer to their work, giving them more transportation options and cutting down on air pollution.

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


Dear Shri Venkaiah Naiduji / Shri Fadnavisji :



Knowing that China consumes nearly 50 % of entire World’s consumption of STEEL and CEMENT , is not going to help ! But improving upon China’s pragmatic planning , will !





17  July  2017


Saturday 15 July 2017

A New Way to E-Way ?



Economic Times ( 14 July ) carries following news report :




“ Govt Bets Big on Tech to Ensure E-way Bill Does Not Bring Back Inspector Raj “


The proposed e-way bill for moving goods within the country would rely heavily on technology, employing RFID chips and QR codes, to ensure that monitoring of goods movement does not bring back inspector raj and slow down goods traffic on highways, officials said. 


The e-way bill is proposed as a permit of sorts in electronic format, which will have details of the goods carried on a vehicle.


"Effort is to have high technology interface," said a government official, adding that it would ensure that all data regarding an e-way bill is captured on it.


Having it embedded on RFID chip or a QR code will help in checking these in a non-intrusive manner without holding up a vehicle.


" These would be checked with hand-held devices or RFID chip readers,"  the official said. 


A group of officers from state and union finance ministry will work on the tech and design of e-way bill, the person said.


According to the proposed framework, GST Network will generate e-way bills that will remain valid for one to 15 days, depending on the transport distance.


One-day permit will be for a distance up to 100 km while a 15-day permit will allow more than 1,000 km transit, as per the proposed law.


A tax officer can intercept any conveyance to verify the e-way bill or the physical goods for all inter-state and intra-state movement of goods 


Rules governing the e-way bill have not yet been approved by the GST Council and are expected to be taken up when it meets next month on August 5. 


Express Industry Council of India (EICI), which represents small and large express delivery service companies engaged in domestic and international door to door transport services of parcels and documents, had expressed concerns about it, saying it could prove a logistical challenge. 



My request / suggestion to GST Council :


·         Aim to turn India’s highways into friction-less “ Conveyor Belts of Commerce


·         Look up conveyor belts in the warehouses of Amazon / Flipkart / UPS / FedEx etc , which carry hundreds of packages per minute – with each package carrying dozens of different items ( can we replace “ packages “ with TRUCKS and “ conveyor belts “ with HIGHWAYS ? )


·         Each item within each box , has RFID chip and QR code ( interlinked )


·         Sensors placed along the conveyor belt “ reads “ each package and each item inside each package . No need to stop the flow of the packages


·         E-way Bill too , will have all the QR Codes / RFID data , of each item loaded onto the truck ( Price / Origin City / Destination City / Supplier with GSTN registration number / Recipient with his GSTN registration number / GST – ISGST – SGST amount for each item / Date of Dispatch / Validity of E Way Bill etc )


·         Just like today’s Mobile Apps of UPS / FedEx enable online tracking of each package and of individual items within each package , that “ high technology interface “ being proposed by the Government should incorporate the following technologies :


   #   QR code / RFID chip





#   Internet of Things ( IoT )






#   BlueTooth / NFC


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


Dear Members of GST Council :


Here is YOUR opportunity to lead the way ( - in this case , the HIGHWAY ! )


There is no technical reason why Software Super Power India , cannot lead the world in ,

“ Ease of Doing Business “



If you guarantee the business / industry that “ NO INSPECTOR “ will stop the truck along its journey , they will willingly implement ANY / ALL technologies to serve the purpose of E Way Bill



Remember , all corruption starts by permitting HUMANS to “ interpret “ whether a given process was “ correct / incorrect “ as prescribed – and collect their “ hafta “ for offering to interpret it in favour of the Business / Industry , violating the process !



By implementing my suggestion



,
technology will SHUT DOWN the truck engine , upon detection of a violation !



And automatically unlock the engine when the violation gets corrected by EDITING the E-Way Bill , on GSTN web site !



16  July  2017