Category: Regulatory environment

Land acquisition held hostage to political opportunism

On March 18, 2015, the whole country witnessed an unusual spectacle of a united opposition in the parliament – led by Congress President, Ms Sonia Gandhi – marching on Raisina Hills towards President’s House. The parliamentarians were going to register their protest with the President, Mr Pranab Mukherjee against the amendments to the ‘Right to Fair Compensation and Transparency in Acquisition, Rehabilitation and Resettlement Act’ (herein after referred as Land Acquisition Act, 2013) being made by Modi – government which they allege is “pro-corporate” and “anti-farmer”. This is a serious charge against Modi who was voted to power last year with an absolute majority on the strength of his unflinching commitment to 125 crores people of this country – including...
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Modi’s dream budget – 2015/16

Borrowing from cricket terminology, media is agog with description of Modi – government first full-fledged budget 2015-16 as a ‘super-budget’. There could not be a more apt description. Finance minister Jaitely has delivered wholeheartedly on the hopes and aspiration of 1.25 billion people of India who only 9 months ago had given Team Modi a resounding mandate to govern and extricate them from the deep economic morass they were plunged in to, courtesy a decade of mis-management and policy paralysis. People gave command to Team Modi on five major planks viz., (i) inclusive development; (ii) building infrastructure; (iii) social safety net (iv) poverty alleviation and (v) countenancing the menace of corruption. On all these counts, the team has delivered without...
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Land acquisition ordinance is pro-farmer

The entire opposition is up in arms against the Land Acquisition ordinance promulgated by Modi – government in December, 2014 which the latter is now seeking to replace by a legislative enactment. The opposition is lambasting Modi for making amendments to the Act passed by the erstwhile UPA dispensation in 2013 which they allege, are pro-industry/business and anti-farmer. The allegations are without any valid basis. These are political statements aimed primarily at embarrassing a government which is committed to inclusive development. Modi’s agenda aims at increasing employment and income to improve lot of poor including farmers. The amendments to 2013 Act are guided by this over-arching objective. Yet, why does opposition think otherwise? The 2013 Act required prior consent of 70%...
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Modi’s juggernaut is unstoppable

Kejriwal led Aam Aadmi Party (AAP) has registered a thunderous victory in the just concluded Delhi assembly elections. AAP has won a monumental 67 out of a total of 70 seats that translates to a scorecard of 96%, a feat rarely seen in elections the world over. While, Congress has been decimated securing a big zero, BJP is reduced to a trifle 3, down from 31 it won in December, 2013. Critics have interpreted this to be a referendum on Modi and even surmised that this will stop his juggernaut. Such interpretation is figment of one’s imagination. It reflects a mindset of his opponents who suffered ignominy of defeat in general elections last year and were desperately looking for a...
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Unclogging land acquisition – Modi way

The erstwhile UPA regime had piloted much trumpeted amendment to Land Acquisition Act – Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCTLARRA) which came in to vogue from January 1, 2014.  Bandied as a revolutionary reform, the Act promised handsome reward to landowners/farmers and speed up the process of acquiring land for building infrastructure and spurring development. However, on a close scrutiny of its provisions, one notices that the outcome would have been just the opposite. A key provision stipulates that the landowner will be compensated @ of 4 times prevailing market price in rural areas and 2 times prevailing market price in urban areas. This sounds attractive and seeks to put an end...
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Ordinance route to reforms

Opposition parties are lambasting government for enacting legislation through promulgation of ordinances. Some of them like CPI (M) have even urged the President not to give his assent to recommendations of the Union Cabinet in this regard. What has prompted them to get in to get in to a belligerence mode? Are they justified in leveling such allegations? Does government’s action violate the constitutional provisions? Could it not wait for the bills to be passed by the parliament? The immediate trigger for these provocations is government’s decision to re-promulgate Coal Mines (Special Provisions) Ordinance and promulgate an Ordinance to give effect to provisions of Insurance Act (Amendment) bill to raise FDI (foreign direct investment) limit from extant 26% to 49%....
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Modi walks the talk on labour reforms

Increasing unemployment is a major issue in India. Every year a whopping 10 million youth join the workforce and only a fraction of these are lucky enough to find a proper job. Absorption of workforce in the organized sector has been abysmal. Time and again, industries and businesses have minced no words in emphatically stating that the biggest factor that prevents them from create quality employment is that their hands are tied down by antiquated labour laws. By nature, business is a risky proposition subject to frequent ups and down. Situations may arise when sheer compulsion of survival in a downward phase may require owner to shed some work force. In extreme circumstances, management may even be forced to close...
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Modi’s tirade against corruption & black money

A central point of prime minister Modi’s campaign during general elections was fight against corruption. A related focus area was his commitment to bring back the black money stashed abroad by concerned Indians. With the new government in office for over four-and-a-half months, opposition parties with Congress in the front have started castigating it for its alleged failure to bring back even a single rupee. This is totally unwarranted and un-called for. Modi does not have a magic wand to deliver within such a short period and that too in an area where previous dispensations failed for decades. He needs to be tested on the basis of his actions rather than outcomes which naturally take time. Thus, within a week...
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Modi’s road to prosperity for ‘Neo-Middle Class’

During his power packed visit to USA with over 3 dozen engagements/meetings, the irresistible Indian prime minister, Narendra Modi held a brainstorming session with high profile American think-tank viz., Council on Foreign Relations (CFR) in New York on September 28, 2014. Apart from discussing Indo-US relations as also India’s relations with its neighbours and other countries, Modi used the opportunity to share his philosophy [contrary to what some of his die hard critics may say, he does not carry any ideological baggage allegedly linked to his  association with Rashtriya Swayamsevak Sangh (RSS), mentor & guide of BJP] and approach to development. Thus, during his opening address at CFR, he stated “there is a ‘Neo-Middle Class’ in our country, one which...
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Modi’s 3 D mantra for inclusive development

Among foremost economic reasons for disastrous performance of erstwhile UPA led by Congress in the general elections (May, 2014) was the dismal employment scenario. Price rise and slump in growth were other key factors. This led to huge disenchantment among youth who vented their anger against then ruling UPA dispensation. They also gave an overwhelming mandate to Modi who promised them jobs through his mantra of inclusive development. During the last decade (2004-2014) of UPA rule, employment increased by a meager 15 million which is one-fourth of an increase of 60 million during the 6 year stint of NDA (1998-2004) led by charismatic Vajpayee. Ironically, manufacturing sector – long perceived as the harbinger of employment – is languishing at just...
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