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Monday, October 22, 2012

Water Pricing and its Regulation by the State


The oft-repeated cliché of an Indian Politician would be ‘Roti, Kapda aur Makkan’. The quintessential slogan with its Rhythmic phonetics unmistakably describes the basic needs of the aam admi. The aam admi, self-reliant and Independent, often never looks forward to the Politician for his basic needs, needs which are fast becoming a Luxury, needs for which one has to toil hard. Of late the society has realized its individual and the state’s responsibility, the slogan of food, clothing and shelter has changed. In Tamil Nadu’s context, the society’s expectation from the state has moved from freebies, to better services. Freebies no longer satiate people’s aspirations, its Power, Roads and Health-Care that the society demands over any other material comforts.

The Governments of the day on the other hand had kept itself busy with its own Business. The minister’s kept themselves busy with their Private and Personal Business, manipulated and bent the system to the advantage of their business. The state resources were legally plundered by the corporate mafia for its own benefits and the excuse offered was ‘in the larger interest of public benefit’.

The natural resources like Spectrum and Coal were almost gifted to the corporate entities at throwaway prices. In the name of development Forest and Agri-lands were snatched from Tribals and farmers and were sold off at market rates to MNC’s. Granite Mining leveled many mountains and sand quarrying caused irreparable environment damages. Power shortages and unimpeded transformation of Ponds and water reservoirs has made Agriculture a non-profitable venture. Many farmers prefer to sell the land to real estate mafia than tilling the soil.    

The record of the state is no better in delivery of other essential services like PDS, water, road, electricity, and Healthcare. Invariably, no province of the Indian state can claim any exemption from these citizen grievances.

Capitalism being the adhoc mantra of the Indian Union, the imported western moles in the Union finance department is busy, tightening the noose around the common man. One such ingenious move is water regulation by the state; a draft of this Policy could be found at the websites of the Union Water Resource Ministry, christened as National Water Policy-2012.

The Bill deals with every aspect of water related issues like, existing resources, use and Misuse of water, demand, depletion, existing and proposed water policy. Two dangerous ideas proposed in the bill are water regulation and pricing by the state.

Why the bill warrants our attention is for the simple fact that it intends to punish the society for the failure of the political class. Successive state and Central Government have failed in many facets, which have led us to the present scenario of Urban and Rural water scarcity.

The unrestrained growth of Population, unplanned urbanization, dense-habitation by flat systems and Housing Board colonies, Non-Nationalization of rivers and non-regulation of hazardous Industrial effluents have made the supply of drinking water a scarce resource. The salinity penetration in water has increased unabatedly. Polices were never implemented to check these banes on time.

Water regulation by the state; first it would come with dual pricing one with subsidized domestic and another for commercial purposes. Over time, Domestic one would be smuggled for commercial purposes; water subsidies would be limited and ultimately eliminated. Finally, Water bill equals or exceeds electricity bill.

Imagine a world where water is regulated by Politicians. FDI would be welcomed for drinking water distribution and irrigation, MNC’s would get gallons of water at subsided rates, water supply agency would be a Investment Portfolio item for the politician’s Business, Gardens and Horticulture would become commercial ventures, Botany would become a chapter of History Books, rural areas would get water supply for twelve hours and metro cities would have water supply cutoff for hours.

Water and air are the two commodities which are a part of Human Rights, if the state is allowed to regulate it; it would be a transgression into our Human Rights. Decades before Sir Winston Churchill once predicted about India ‘a day would come when even air and water would be taxed’; our politicians have proved him right.

 

Sunday, October 14, 2012

FDI in Multi-Brand Retail: Part III


The Multinationals may view us huge market with enough purchasing potentials, but with all their experiences India may offer different lessons to them. They may come with deep pockets, offer heavy discounts and choke competition, but remains to be seen is whether the Multinationals can sustain Indian thriftiness? The purchasing pattern of an average Indian is Unique, a judicious mix of cost, quality and quantity. If Population is an advantage to them, sometimes, it could turn otherwise.  Petty or Hefty entrepreneurs can walk it any time, choking competition may not be an easy option here.   

Let’s believe they can better negotiate than us for better Public services from the Government. Better roads could become an essential item rather than a luxuries one. Our votes can always tame the politician to our advantage.  

Unlike the US farming is not an ultra large scale business, it’s a cottage Industry. Indian farmers, who prefer to sell the lands than cultivating, may go back to farming. Modernization of farm procurement may break the caste hierarchy of the villages. The predictable Multinational employee pattern may attract the House wives and less educated youths of this country. Customer focus of these companies may bring in new skill sets to their employees; these skill sets may empower their future, entrepreneurially.  

Boon or a bane, the John Company is to be credited for all what we have today. A country called India was created first by an English company centuries before Vallab Bhai Patel. Hope the Sam companies create a better country out of the existing one.      

 

FDI in Multi-Brand Retail: Part II


The potential social impact of these policies warrants a sneak into the annals of wrong side of our history. A foreign trading company was responsible our enslavement for over two centuries. The various media houses often portray FDI as a panacea for all evils of this country. The retailers like Wal-Mart, Carrefour and Tesco have earned enough publicity without spending a single Penny.

All the arguments cited here against FDI in Multi-brand retail are based on a reference called Wall-Mart’s Economic foot print; a literature survey prepared by a US based institution, the Hunter College. According to survey the formula for financial success includes low labor costs with limited employee benefits and leveraging of Governmental subsidies.

The capital requirement of the country is huge, which can be satiated only by foreign dollars. The current regulations permits only 53 cities to entertain Multi-Brand FDI, can 53 cities solve the capital requirements for 1.2 billion people? The incoming capital are not charity dollars, they come here in search of profits, profits which are going to sail offshore some day.

The proposed development in cold storage and Logistic is already open for FDI; the foreigners don’t want to play a secondary role to the Indian retailers. All these infrastructures will bear fruits only if we have proper Road infrastructure in India. Do you have one in your neighborhood? Do you believe the politicians are going to use the tax money for your benefits? The extra money earned by the ‘Inglish Raj’ is going to make the rich, richer and the poor, poorer.

The APMC brokers may be replaced more educated and certified brokers. Farmers may be forced to produce what the MNCs want the most and this may wipe out the food security of the farmers. Let’s not forget the forced Indigo Plantation of our history. Most of purchases could be made in futures market by these MNCs. As far Jobs, the hunter report says ‘ more than two third of wall-mart employees don’t try to support a family’. The consumers get benefits only when they buy everything in bulk.

After Imperialism and colonialism, it’s the turn of capitalism. In a nation where any foreign practice was once considered as evil, the devil has come to stay. Only time would answer, whether he is a devil or an angel?  

   

 

Monday, October 8, 2012

FDI in Multi-Brand Retail: Part I


The commerce Ministries’ Department of Industrial Policy and Promotion bypassed the parliament and issued an executive press release on FDI in Single and Multi Brand retailing. A hasty political move bunched with a host of many other tough anti-people decisions. The congress which in the past, swore on its charka, Panchyat and Gram rajya changed its skin and exposed its true colors.

The congress ministers, in particular the HRD minister in an article on Times of India offered a new perspective to view FDI in retail, a context of capital Inflows, Job creation, Industrial and Infrastructure growth.

The conventional marketing option available to the Indian farmer is through the APMC, Agricultural Produce Marketing Council. Traditionally a farmer’s choice of food or cash crop depends upon in basic needs. The choice of cash crop depends on the season, measure of land available and risk appetite of the farmer. A farmer primarily cultivates, for the food security of his family and his local economy, the leftovers if any end up at the local APMC. A farmer cannot sell outside the committee’s ambit.    

Supporters of FDI in retail often sight many opinions; all of them could be classified under two factors, Capital creation and Individual (Human) development.  

The prime requirement for a wholesome development of the economy is capital. The capital requirement for us to graduate to a Developed Nation is huge, which cannot be satisfied by local resourses. So the country needs more of the white man’s dollars for more development. Dollars would fetch us good quality roads, schools, Hospitals and better grocery services. More and more of the entrepreneurs would join the organized sector, hence more sales and Income taxes. Competition would bring good storage Infrastructure. It is believed that these storage facilities can reduce the food wastage and bring down food Inflation.

As for the Human development, FDI in retail can eradicate child labor, prevent exploitation of labor, and bring mass employment opportunities. ‘Annachi’ stores or what’s called as Kiranas in the north may upgrade their services. Consumers may get high quality products at discounted prices. Farmers may get professional advices for their ventures and good prices for their harvest.

Passing the baton of power and responsibility is an accepted norm of day; it’s sweetly defined as Liberalization. Liberals proffer many promises, and if you have trust in these promises; you are on the right side of Kapil Sibal’s History.

 

Wednesday, October 3, 2012

Patriots-Patronized and Unsung


It’s the Second day of October, a festive and auspicious day, Jayanthi of the father of our Motherland. A day free of all rituals and religious duties, but still the day is filled with a festive environment on our TVs and Newspapers. The portrait of a half naked fakir dots all the spot where your eyes lay on. Peace becomes, the motto of the day; Raj Ghat, the Video of the day; Ishwar-Allah song of the day; Khadhi, the dress of the day; and Gandhi, the movie of the day.

Almost six decades have passed; Historians of the sub-continent were kept busy, writing the official and politically acceptable version of history.

The Pak academia invested all its time in proving that Muslims were different from Hindus who cannot coexist with each other and therefore Partition of India was correct. If Partition was correct so was their Quiad-e-Azam, M A Jinnan. Jinnah and Liaquat were the hero of the Pak Story , the Hindus solely represented by Congress, solely mentored by Nehru-Gandhi duo were the bad guys.  

As far as our History goes, the congress awakened India, the congress Liberated India, it stood (as still is) for secularism but the League played spoilsport, congress wrote the constitution, congress developed India and Congress Liberalized India.  

Congress History is Indian History and the History was written by descendants Nehru-Gandhi family.

The Central Cabinet Ministers by their nepotism have reduced the honor of India to that of a Jagir and Nehru-Gandhi family it’s Jagirdars. Consistently the tax payer’s money is used to promote the congress mascot Sonia Gandhi in all of the Governmental advertisement as UPA Chairperson. Rahul flies of IAF planes, so does Sonia.

As for the Prime Minister money does not grow on trees therefore we should learn to live with 32 Rs for a day but god know where on earth he gets the money to feed 350 guests at a fair price of Rs7000/ per meal. The luncheon was arranged to commemorate her majesties eighth anniversary of coronation.

On the Last week of September, the print media carried a full page advertisement by the ministry of culture commemorating an event celebrating 150th birth anniversary of Motilal Nehru.

Motilal Nehru was a freedom fighter and deserves our gratitude, but what business does the ministry of culture has with the birth anniversary of a freedom fighter? If the Government has a new protocol, does it apply to all Freedom fighters?  . Wikipedia introduction says he was born on 6th May 1861 and not on 25th September 1862. The event saw the release of a stamp and a coin of MLN.

Buy any Postage stamp in your neighborhood Nehru, Gandhi, Indira and Rajeev would be the prominent faces. J Nehru himself probably missed his father’s centenary 1961; Sonia has reminded us of MLNs.

The Congress Government has used and abused the contributions of freedom fighters and social reformers for its parochial political needs. The contributions of many a selfless leader has often been conveniently overlooked, if it is politically unrewarding.

28th September was the 105th birth anniversary of Bhagat Singh; the event went unnoticed in India. Commemorative coins issued on his birth centenary in 2007 saw its light only in 2010. The popularity of Bhagat Singh even forced the Pakistan Government to rename a street in west Punjab.

The list is endless; three other prominent leaders conspicuously overlooked by congress include Dr.B.R.Ambedkar, Subhas Chabdra Bose and Vallabhai Patel.

Ambedkar’s role in constitutional drafting is a well documented history; still congress insists Nehru’s whip speeded up the process. The constitution was completed on 26th November 1949 but for pure sentimental reasons it was pushed to 26th January 1950. April 14th may be national holiday on account of his Jayanthi, but Doordharshan is yet to screen the Mamooty stared movie Ambedkar.

Subhas Chandra Bose broke away from congress, raised an Indian army and forced many mutinies in British Indian army. A recent Pakistani blog on Dawn opined, it was Bose who frustrated the British to leave not Gandhi or Jinnah. The British gifted Independence to Ceylon without any popular demands from the natives.

Vallabhai created a united India out of some Five Hundred odd countries. Countries were made to fall in line either by diplomacy or use of force. He wielded a strong conviction not to give to any Muslim demands (After Partition) for separate electorates. The country’s Integrity was his priority, post partition.

Bhagat Singh remains only in Punjabi folk and pop songs; Ambedkar is still a depressed class leader; some Bengalis remember Bose and the congress Leader Vallab bhai Patel is a role model of the BJP.

By clever use of the public money, a single family has created a TINA factor. The public must be made Aware of the politician’s lavishness. The CAG must not question the Government’s policies but also its excesses.