A marathon exercise initiated by the ministry of corporate affairs [MCA] early this year which got consummated on September 15, 2018 on KYC [know your customer] norms for company directors has thrown up results that tell a lot about the existence of a monstrous ghost economy and the manner in which the present dispensation led by Modi is endeavoring to stem the rot. The exercise reveals that a total of 5000,000 DINs [director identification number] were issued by the authorities. On records, these were the number of directors serving on the companies. Out of these, only 3300,000 were ‘active directors’ implying that the balance 1700,000 were inactive or ‘defunct’. Put in simple terms, an inactive/defunct director is a person who...
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Rafale deal – looking for corruption where there is none
During the last four-and-a-half years of his term, prime minister, Modi has brought about a metaphorical change in the very institution of governance – its central point being ‘honesty’ and complete ‘transparency’ in its wheeling-dealing with all stakeholders and the public at large. The running theme in all the governance processes is zero tolerance for corruption which is very aptly encapsulated in the euphemism coined by him ‘naa khaoonga, naa khane doonga’ [neither, I will take bribe nor let anyone else take]. Modi has not merely talked about it but demonstrated through his actions. Even his most ardent critics are unable to pinpoint a shred of evidence about corruption or nepotism in any of the departments/ministries or undertakings/agencies coming under...
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Fuel woes – CED cut could be catastrophic
With the petrol and diesel prices crossing a new landmark of Rs 80 per litre and Rs 70 per liter [in Delhi], there is a big hue and cry in political circles. The sharks prowling for an opportunity to lambast Modi – government are demanding a steep cut in the central excise duty [CED] to enable corresponding reduction in the price to consumers. They argue that during the last 4 years, the centre allegedly mopped Rs 1100,000 crore from increase in CED. A portion of this money could be used to giver relief, they contend. The international price of crude had declined from US$ 117 per barrel in November 2014 to US$ 28 per barrel in January 2016. Leveraging this,...
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Unable to pay MSP, face one-year jail term
Last month, the Devendra Fadnavis government approved amendments to the Maharashtra Agricultural Produce Marketing [Development & Regulation] Act, 1963 to bring it in line with the Centre’s Model Agricultural Produce and Livestock Marketing –[Promotion & Facilitation] Act, 2017. As per the amendment, the entire state is declared as a single market instead of the earlier rule of notifying “market areas” where sale/purchase of farm commodities could take place. Henceforth, a trader will need a single license enabling him to purchase agricultural produce from any mandi within Maharashtra. This is a good decision that can help farmers realize a better price. In yet another decision, the Maharashtra government has made purchase of a farm commodity below the official minimum support price [MSP] a...
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Royalty/cess on oil – Modi ends a bizarre practice
In the past, governments have used profit making public sector undertakings [PSUs] in the oil and gas sector viz. Oil and Natural Gas Corporation [ONGC] and Oil India Limited [OIL] for reining in fiscal deficit that was getting out of control – most of the times – due to profligacy in revenue expenditure triggered by sheer populism to garner votes. The prominent measures used were asking them to give discounts on sale of their crude output to downstream oil PSUs such as Indian Oil Corporation [IOCL], Bharat Petroleum Corporation [BPCL] and Hindustan Petroleum Corporation [HPCL] so that the latter in turn, could sell petroleum products viz. LPG, kerosene et at subsidized price to the consumers; insisting on high revenue share...
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Demonetization forces tax compliance on Indians
Nearly two years after the demonetization [November 8, 2016] announced by the prime minister, N Modi, the Reserve Bank of India [RBI] has released – in its Annual Report for 2017-18 – the numbers on the value of the demonetized old 500/1000 rupee notes that were not returned to the banking system. This is about Rs 10,700 crore out of a total of Rs 1541,000 crore which were with the public as on November 8, 2016. This has triggered waves of exhilaration among the critics of demonetization [especially the main opposition party Congress] who have been quick to point out that this was a flop show. They contend that it achieved nothing in terms of its stated objective of denting...
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Fertilizer subsidy payments assured within a week – a joke!
Considering the crucial role played by fertilizers in increasing food production and the overarching need to make it affordable to farmers, the union government has followed a policy of controlling their maximum retail price [MRP] at a low level unrelated to their cost of production and distribution which is higher. To ensure that production is viable at this price, it gives subsidy to the manufacturer to reimburse the difference between the two. The amount of reimbursement is known as subsidy. In case of urea, the subsidy varies from unit to unit and is administered under the New Pricing Scheme [NPS] whereas for decontrolled complex fertilizers, a ‘uniform’ subsidy fixed on per nutrient basis is given to all manufacturers under the...
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Falsehoods – It’s all about grabbing power
Having ruled the country for several decades – either directly or indirectly under coalition arrangement with pliable parties – the grand old party [read: Congress] can’t not relish the idea of someone coming from a humble background N Modi being at the helm. That Modi’s party BJP alone got a majority of its own [never seen before during the last 30 years or so], is of no consequence as the Gandhi family ruled Congress has arrogated to itself an eternal right to govern. This is the only interpretation of Indian democracy that the party understands. It is this anathema for any other leader [in this case, Modi who arouses maximum hatred] that made Dr Manmohan Singh – following his master’s...
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MSMEs – the twin reforms boost
The micro, small and medium enterprises [MSMEs] occupy a pivotal position in the Indian economy. The sector consists of a total of 63 million units which employ around 111 million people. It contributes about 30 per cent to the GDP, accounts for 45 per cent of manufacturing output and about 40 per cent of total exports. Considering its huge job creating potential [next only to agriculture and allied activities] and the power to increase income across a wide spectrum of the populace, it fits well into the inclusive development agenda of Modi. The best way to fully leverage the demographic dividend [65% of India’s population is below 35 years] is to create opportunities for growth in MSMEs. The health and...
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Economic growth – NDA has distinct edge over UPA
The report of a committee under Dr Sudipto Mundle – set up by the National Statistical Commission [NSC] under the Ministry of Statistics and Program Implementation [MoSPI] – whose task was primarily to generate back-series data on growth in GDP at factor cost using the new base year 2011-12 has sent the grand old national party [read: Congress] into a jubilation mode. The cause for the outburst is GDP growth in double digit [10.08% to be precise] projected by the committee for the year 2006-07. That happened to be the third year under the first tenure of then UPA – government led by Dr Manmohan Singh. For a party having got jolts elections-after-elections, there is hardly any reason to cheer....
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