For several decades, production of pulses in India has fallen substantially short of consumption. The persistent deficit has led to intermittent bouts of spike in their prices as imports [needed to plug it] have often come after lag and failed to reach consumption points in time – courtesy, handling, storage and transportation bottlenecks. The import of pulses in large quantity also resulted in huge outgo of foreign exchange exacerbating balance of payment problems especially during times when the macro-economic fundamentals were weak [for instance, during early 90s and 2012-13/2013-14]. This also affected the ability of the government to remain glued to the path of fiscal consolidation. Pulses are an important source of nutrition especially for vegetarians and a critical component...
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UMPPs – stop treating generators with kid gloves
When, subsidies and in turn, fiscal deficit gets out of control, the eyes of the whole nation are set on it and all institutions, experts and financial wizards frantically look for steps to set things right. But, when it comes to dealing with factors that cause hike in subsidies/deficit, everyone turns a nelson eye; instead of taking corrective measures, they abet actions to perpetuate the malady. The case of ultra mega power projects [UMPP] vividly illustrates this. Tata Power Ltd [TPL] and Adani Power Ltd [APL] had bagged such projects 4000 MW and 4620 MW respectively under tariff-based competitive bidding [TBCB] to supply power at fixed tariff all through project’s operational life. The tariff in case of Tata was Rs...
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Why PMGKY was a fiasco?
Within a month of historic and revolutionary decision of demonetization [scrapping of 1000/500 rupee notes] announced by prime minister Modi on November 8, 2016, the government launched an ambitious scheme called Pradhan Mantri Garib Kalyan Yojna [PMGKY] on December 16, 2016 ending on March 31, 2017. The scheme was contemplated in the backdrop of an unprecedented amount of cash held by the public in these high denomination currency notes having been deposited in banks. The perception of the authorities – very rightly so – was that this could not be pure transaction money kept by public to meet routine requirements [or savings of housewives, they normally keep in cash]. Considering that the amount deposited in excess of Rs 200,000/- in...
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MGNREGA under Modi – has it ceased to be epitome of corruption?
In a stunning revelation, Amarjeet Sinha, secretary, ministry for rural development (MoRD) has revealed that the government has cancelled nearly 10 million fake ‘job cards’ under the Mahatma Gandhi National Rural Employment Guarantee Act [MGNREGA]. Including the fake beneficiaries struck off from the scheme earlier, the total number of such cards cancelled thus far is more than 31 million. Under MGNREGA – a flagship welfare scheme launched by the erstwhile UPA dispensation in 2005 – ‘guaranteed’ employment is provided to a member of a poor family in rural areas for a minimum of 100 days in a year and wage paid @ Rs 100 per day. For this purpose, one job card is given to each family. A card holder...
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Strategic sale of PSUs – to forego, a tactical blunder
In several areas, Modi – government has continued with the policies and programs of the erstwhile UPA – dispensation and has unquestionably bettered upon in implementation and deliverable; for instance, Mahatma Gandhi National Rural Employment Generation Program [MGNREGP] and disbursement of LPG [liquefied petroleum gas] subsidy. Yet, there is one area where the former continues with latter’s legacy with no better outcomes. This has to do with “strategic” disinvestment of Union government’s shares in public sector undertakings [PSUs]. It may be recalled that in its previous incarnation under Vajpayee, the BJP-led NDA dispensation [1998-2004] had vigorously pursued strategic disinvestment, some of high profile cases being Modern Food Limited [MFL], Hindustan Zinc Limited [HZL], Bharat Aluminium Company [BALCO] etc. The UPA...
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Yogi – Modi onslaught on poverty
The just concluded assembly elections in Uttar Pradesh [UP] were fought in the backdrop of deteriorating law and order situation, hostile environment for investment, crumbling infrastructure [sans a few pockets in urban areas], widespread farmers distress, their high level of indebtedness and acute shortage of bare necessities viz. home, food, education, health, water and electricity. The poor investment climate and pathetic law and order discouraged industrialists and businessmen from setting up factories/shops even as existing establishments were facing closure. Together with farming being un-remunerative/losing proposition, this made a deadly cocktail leading to large-scale loss of jobs and in turn, migration of youth en mass to other states such as Maharashtra and Gujarat. Promises galore BJP led by Modi promised liberation...
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At WTO – India gets platitudes, no permanent solution
At a recent meeting of agriculture committee of the WTO [World Trade Organization] held on March 28, 2017, developed countries lambasted India on its minimum support price [MSP] programs for wheat and other key commodities such as sugarcane and pulses. While, Australia raised concerns over increase in India’s MSP for wheat since 2006, US and EU questioned subsidies on sugarcane, buffer stock of pulses and price support for both rabi and kharif crops. But, there was little movement on ‘permanent solution for legitimizing its food procurement subsidies’, an issue of great concern to India. Ever since, World Trade Agreement [WTA] came into effect in 1995, developed countries have been obfuscating the issues concerning commitments of member countries. While, on one...
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Are Indian IT czars shooting in the mouth?
During the last one-and-a-half decade or so, the Indian I-T [information technology] industry has recorded unprecedented growth propelled mostly by exports. Of this, a disproportionately high share has come from increase in exports to USA. The industry has an aggregate revenue of over US$ 150 billion [2016] of which around US$ 100 billion [or 2/3rd] is contributed by export and the balance US$ 50 billion from domestic source. Within exports, USA alone accounts for over US$ 50 billion. This rapid growth helped all leading players viz. Tata Consultancy Services [TCS], Infosys, Wipro, Cognizant Technologies etc reap a financial bonanza. Even after distributing handsome dividends, they have accumulated monuments of cash running in billions of dollars. Of course, India has gained...
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DBT for fertilizers – shun flawed mechanism
Alluding to direct benefit transfer [DBT] of fertilizer subsidy, in budget speech for 2016-17, finance minister, Arun Jaitely had stated :- “We have already introduced DBT in LPG. Based on this successful experience, we propose to introduce DBT on pilot basis for fertilizer in few districts in the country with a view to improving quality of service delivery to the farmers.” As a follow up, DBT of fertilizer subsidy is now in operation on a pilot basis in 11 districts viz. West Godavari, Krishna and Rangareddi [Andhra Pradesh]; Una [Himachal Pradesh]; Hoshangabad [Madhya Pradesh], Pali [Rajasthan], Krishnaganj [Bihar], Karnal and Kurukshetra [Haryana]; Nashik and Raigarh [Maharashtra] From the next kharif season beginning April, 2017, the scheme will be launched in...
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BS IV fuel norms – don’t fall prey to auto lobby
The Society of Indian Automobile Manufacturers [SIAM] has raised a hue and cry over a staggering 880,000 Bharat Stage [BS] III vehicles [including four wheeler and two wheeler] with automobile dealers facing the prospect of being scrapped as BS IV fuel norms take effect from April 1, 2017 all over the country. The cacophony of all powerful SIAM – an association of vehicle and engine manufacturers – seems to be working as a 2-judges bench of the Supreme Court [SC] which heard a plea of a clutch of automobile manufacturers on March 25, 2017 directed the Centre to come with options to mitigate the crisis. The apex court even discussed various options taking on board the possibility of allowing registration...
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