What is holding back ?

[ Source : https://qz.com/1148052/beware-of-bitcoin-the-reserve-bank-of-india-warns-again/ ]

After China, India’s central bank warns: Beware of bitcoin

Over the weekend, it was China’s central bank. Then, on Tuesday (Dec. 05), the Reserve Bank of India (RBI) warned investors against betting on bitcoin and other cryptocurrencies.

The Indian central bank, however, was more straightforward, “…cautioning users, holders and traders of virtual currencies (VCs), including Bitcoins regarding the potential economic, financial, operational, legal, customer protection, and security-related risks associated in dealing with such VCs.”

The RBI’s Dec. 05 release reiterated the concerns it had raised twice before in December 2013 and February 2017.

In India, besides the RBI, the government, too, has made public its discomfort with bitcoin.

On Nov. 30, finance minister Arun Jaitley said India does not recognise virtual currency as legal tender.

Earlier this year, a committee set up by his ministry had reportedly recommended banning crypto-currencies over fears that they could be used to launder money and perpetuate frauds.

Other opponents of Bitcoin are :

·         The central banks of Indonesia and Bangladesh

·         China shut down bitcoin exchanges and banned initial coin offerings.

·         European Central Bank 

·         Bank of France

·         Russian president Vladimir Putin 

·         Germany’s central bank.

Meanwhile, rallying past all warning signs, bitcoin is at a record high, having crossed the $12,000 mark today (Dec. 06).

Yet, crypto-currency exchange operators remain unfazed.

“If India had to ban virtual currencies, they would have done that by now. In the last three years, the RBI’s statement has been the same: They are uncomfortable with it and people should invest at their own risk,” Vivek Steve Francis, CEO of Coinome, a crypto-currency-trading exchange, told Quartz late last month.

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But , I am sure that if Shri Jaitleyji knew the following fact about the “ process of mining “ of bitcoins , he would rush to President Kovind , with an ordinance to ban bitcoin mining / trading , in India :

[  Source : http://grist.org/article/bitcoin-could-cost-us-our-clean-energy-future/  ]

“Today, each bitcoin transaction requires the same amount of energy used to power nine homes in the U.S. for one day.

And miners are constantly installing more and faster computers.

Already, the aggregate computing power of the bitcoin network is nearly 100,000 times larger than the world’s 500 fastest supercomputers combined.

The total energy use of this web of hardware is huge — an estimated 31 terawatt-hours per year.

More than 150 individual countries in the world consume less energy annually.

And that power-hungry network is currently increasing its energy use every day by about 450 gigawatt-hours, roughly the same amount of electricity the entire country of Haiti uses in a year “ .

If India does not ban Bitcoin – and fast - , it would consume all of that 100 GW of Solar Power that we are targeting to commission by 2022  !

100 GW, just to satisfy the GREED of some ( holders of BLACK MONEY ? ), who want to multiply their illegal wealth , a 1,000 times by 2022 !

For an over-simplified explanation of  Bitcoin, read :

https://myblogepage.blogspot.com/2017/08/in-eyes-of-beholder.html

07  Dec  2017

www.hemenparekh.in  /  blogs

Too Little : Too Late ?

Over 93 Lakh Children in India Suffering from Severe Acute Malnutrition

Over 93 lakh children have severe acute malnutrition (SAM) in the country, the government on Tuesday said, citing data from the latest health survey.

Minister of State for Health Faggan Singh Kulaste told the Rajya Sabha that there are 966 Nutritional Rehabilitation Centres (NRCs) in 25 states and UTs in the country.

"It is estimated that around 93.4 lakh children are having severe acute malnutrition (SAM) as per National Family Health Survey (NFHS)4 and out of this, 10 per cent of SAM with medical complications may require admission to NRCs," he said in a written reply.

( http://www.news18.com/news/india/over-93-lakh-children-in-india-suffering-from-severe-acute-malnutrition-1371042.html  )

In this context , the following news in Business Line ( 02 Dec ) , appear to be a case of “ Too Little ,  Too Late “ :

“ Cabinet gives nod to set up Rs 9000 Crore nutrition mission “

The Mission , in its first phase ( 3 years ) cover 42 lakh children

That would work out to just Rs  19.5 / child / day  !

Any guess , how much of this amount will actually be “ food “ that reaches those children and how much will be “ administrative expenses “ ?

And how many more years will it take to reach all those 93.4 lakh children ?

Key facts about hunger in India

[  https://www.indiafoodbanking.org/hunger  ]

India is home to the largest undernourished population in the world

14.5% of our population is undernourished

190.7  million people go hungry everyday

21.0%  of children under 5 are underweight

38.4% of children under 5 years of age are stunted

1 in 4 children malnourished

3,000 children in India die every day from poor diet related illness

24% of under-five deaths in India

30% of neo-natal deaths in India I urge the Government to take help of digital technology ( JAM trinity of Jan Dhan A/C – Aadhar – Mobile phone ), to tackle this problem , by considering implementation of : BANMALI is the TOTAL SOLUTION https://myblogepage.blogspot.com/2016/11/banmali-is-total-solution.html Saving 1.2 million Kids https://myblogepage.blogspot.com/2016/06/saving-12-million-kids.html

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06  Dec  2017

www.hemenparekh.in /  blogs

India : Energy Storage Mission

[   E-  mail :  Transport-niti@gov.in     /   cstranger@rmi.org  ]

[  Web site : 

http://niti.gov.in/writereaddata/files/document_publication/India-Energy-Storage-Mission.pdf  ]

For all interested in manufacturing of Electric Vehicles in India , this is an excellent document

NITI Aayog deserve congratulations for this authoritative paper

Among many statistical projections and conclusions , this report says :

·         India would require a minimum of 20 GIGA FACTORIES by 2030 ( for 800 Gwh capacity )

[  40 Gwh per factory  ]

If we assume that some industry ( Reliance / JSW / Suzuki –DENSO / M&M etc ) manages to put up the very first such Giga factory in 2020 , then , this would require at least TWO giga-factories to be commissioned EVERY YEAR for the next 10 YEARS ( 2020 till 2030 )

FOR REFERENCE :

TESLA’s Giga-factory has a capacity of 35 Gwh and expected to cost $ 5 Billion ( apprx. Rs 35,000 Cr )

So , a 40 Gwh factory might cost , approx. Rs 40,000 cr

That means , we need an investment of Rs 80,000 Cr per year ( for 2 factories ) , for 10 years in row !

QUESTIONS :

·         Which private sector companies would come forward with such HUGE investments – especially when private sector investments have literally dried up during past 2 years ?

·         Which bank ( private or public ) would come forward with funding of these giga-factories, even as it is struggling to take big “ hair cuts “ on its existing NPA ?

·         Which company-director ( inside or outside ) would dare to go to the market for funds – when Li-ion Battery prices are DROPPING by an ave of 19 % per year ?

{  Projections :  2017 > $ 240/Kwh  //  2025  >  $ 109 / Kwh  //  2030  > $ 73 / Kwh  }

LARGER  PICTURE :

·         As per Report , for 100 % domestic manufacture of batteries, India would require,

      #    3,500 Gwh of Lithium-ion Batteries

     #     That would require an investment of $ 300 Billion [  Rs 20 Lakh*Crore  ]

MY  TAKE :

·         Government has neither the money , nor the expertise for setting up Giga factories

·         Private Sector would not want to take on such hugely  “ Risky “ ventures

·         Banks want to play “ Safe “ while lending in light of many adverse negative developments

WHAT  IS  THE  WAY  OUT  :

·         Government to launch “ Battery Infra SPV “

·         Under Indonesia type “ Black Money Amnesty Scheme “ enable stashed away Black Money to come out in the official banking channel ( through deposits made in “ INFRA ACCOUNTS “ – like Jan Dhan Accounts ) . Remember , Indonesia managed to raise $ 342 Billions !

           Read :

    https://myblogepage.blogspot.com/2017/12/but-where-is-money.html

·         Such converted ( Black to White ) monies can only be invested in “ Battery Infra SPV “

Hoping for any other way to raise such HUGE amounts of “ Risk Free “  and  “  Interest Free “ funds , in such a short time , would only amount to  WISHFUL  THINKING  !

I hope someone has the courage to tell the public this terrible TRUTH !

It is time to forget all that senile talk of an AMNESTY SCHEME rewarding the dishonest tax-evaders and punishing the honest / middle class tax payers !

It is time to tell the people : If we want to eliminate air pollution and save 600,000 premature deaths per year , then Means are unimportant ;  Ends are  !

05  Dec  2017

www.hemenparekh.in / blogs

3 Laws of E - Commerce

DNA ( 27 Oct ) carries following news report :

“ Govt readying policy to help e-commerce firms go global “

Aiming to expand Indian e-commerce sector globally, the Ministry of Electronics and IT has initiated preparation of a policy framework which will fuel the growth of the e-commerce economy.

This is part of ministry's target to build a $1 trillion digital economy by 2022.

Electronics and IT minister Ravi Shankar Prasad recently took a meeting on the roadmap for the growth of digital economy and the next phase of Digital India.

In a presentation that was focused on digital economy, the ministry said a policy framework is underway for expanding e-commerce economy within India and globally including Saarc (South Asian Association for Regional Cooperation), South-East and West Asia, Africa and Brics (Brazil, India, Russia, China and South Africa), according to a senior official from the ministry.

" The aim is to capture foreign markets by Indian players and vice-versa," the official said.

According to the available estimates, the e-commerce economy in India stands at around $30 billion and the government expects it to grow to $150 billion by 2024-25. The digital economy is also expected to create jobs for 30 million people by 2024-25.

The focus is also on developing India as a global hub for 'fintech'.

As part of the growth in the digital economy, four new centre of excellence (CoE) will be launched in Ahmedabad in Gujarat, Gurgaon (Haryana), Visakhapatnam (Andhra Pradesh) and Aurangabad (Maharashtra) by March 2018. One such CoE is already operational in Bengaluru. All these initiatives are part of a new Internet of Things policy which is expected to be ready and operational by March next year.

The ministry is in the process of launching next phase of Digital India 2.0, which will be launched soon as it moves ahead to a target of $1 trillion digital economy by 2022.

'Digital India 2.0' will usher in a new India, which will increase the digital economy by 3.5 times from Rs 20 lakh crore at present to Rs 70 lakh crore by 2022. This will include digital payments industry worth Rs 35 lakh crore, software products and services industry at Rs 21 lakh crore, electronics industry at Rs 7 lakh crore and telecom at Rs 7 lakh crore, according to a presentation by the electronics and IT ministry.

Over the last two years, Digital India has made significant progress and it's time to move to the next phase. The pillars of Digital India -- broadband, e-governance, Make in India, e-Kranti, information for all, public internet program and others have to be strengthened and scaled up further as the government aims to make India fully-digitally literate. Digital India 2.0 will make way for new technologies for better and faster implementation. It will also outline the way ahead for New India, according to the ministry.

And only yesterday ( 04 Dec ) , Economy Times carried a news report titled :

“ India Opposes E-comm Talks at WTO, Submits Document “

The country has for the first time submitted a formal document opposing any negotiations on e-commerce at WTO

The country has said that it would ‘ continue the work under the Work Programme on electronic commerce….based on the existing mandate and guidelines , referring to the programme on e-commerce adopted by WTO countries in 1998 “

E-commerce entered the WTO in 1998, when member countries agreed not to impose customs duties on electronic transmissions, and the moratorium has been extended periodically

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It would be a pity – and a lost opportunity to take e-commerce to $ 150 billion by 2024-25 – if our DOCUMENT ( submitted to WTO ) , failed to incorporate :

Parekh's  3  Laws  of  E  Commerce 

https://myblogepage.blogspot.com/search?q=missing+the+wood

sent to the Cabinet Ministers on 12  AUG  2016

05  Dec  2017

www.hemenparekh.in / blogs

#EGovernance #Blockchain #DigitalIndia

Blockchain  for  E Governance  ?

Mumbai mirror ( 04 Dec ) carries following news report :

“ Blockchain journey goes from suspect to solution “

Police and security agencies have so far only taken an interest in blockchain — the distributed ledger technology behind crypto-currencies like bitcoin — for tracking criminals hiding illegal money from banks.

But that’s changing as some civilian, police and military agencies see blockchain as a potential solution to problems they have wrestled with for years: how to secure data, but also be able to share it in a way that lets the owner keep control.

Australia, for example, has recently hired HoustonKemp, a Singapore-based consultancy, to build a blockchain- based system to record intelligence created by investigators and others, and improve the way important information is shared.

“They’ve been trying for years to come up with A CENTRALISED PLATFORM, but people are reluctant to share information,” said Adrian Kemp, who runs the consultancy, which was awarded a A$1 million ($757,500) grant by AUSTRAC, Australia’s financial intelligence agency, and the Australian Criminal Intelligence Commission.

Blockchain’s appeal for data sharing is threefold.

Its ledger, or database, is not controlled by any single party and is spread across multiple computers, making it hard to break.

Once entered, any information cannot be altered or tampered with.

And, by using so-called smart contracts, the owner of information can easily tweak who has access to what.

Governments are already exploring ways to store some data, such as land records, contracts and assets, in blockchains, and the financial industry, too, has experimented with blockchain technologies to streamline transactions and back-office systems, though with limited success.

In April 2014 , I pitched this very idea where I suggested creation of a  “ COMMON  SHARED  DATABASE “ between :

*  Public Accounts Committee           (  PAC  )

*  Central Vigilance Commission        (  CVC  )

*  Central Information Commission     (  CIC  )

*  Research and Analysis Wing           (  RAW  )

*  Serious Fraud Investigation Office   (  SFIO  )

*  Information Bureau                        (  IB   )

*  Economic Offence Wing                   (  EOW  )

*  Central Bureau of Investigation        (  CBI  )

*  Department of Revenue Intelligence (  DIR  )

*  Comptroller and Auditor General       (  CAG  )

*  Anti Corruption Bureaus ( States ).... (  ACB  )

*  Enforcement Directorate                    (  ED   )

*  Lok  Ayukts    (  States   )

*  Lok Pal           ( Central  )

For details of my scheme , read :

, E Governance ? 

[  https://myblogepage.blogspot.com/2014/04/e-governance.html  ]

Blockchain seems like the most appropriate way to implement my suggestion

04  Dec  2017

www.hemenparekh.in / blogs