NJAC Row: Constitutionally Speaking

16^th October, 2015 marks the repeal of National Judicial Appointments Commission(NJAC) Act (2014) by the Supreme Court of India. This day is a historic event as the debate on basic structure of Indian constitution comes to limelight again. It was Kesavanada Bharati vs. State of Kerala case in 1973 during which the Supreme Court formulated “The Basic Structure Doctrine”. Of course, the term “basic structure” is defined as when required.

The whole nation was surprised by the Supreme Court’s judgment that attracted both criticism and appreciation.

Here is what ‘elected’ representatives have to say:

“Indian Democracy cannot be a tyranny of the unelected over the elected and if so, the democracy would be in danger” — Arun Jaitley, Union Finance Minister.

“Surprised by the judgment, NJAC was supported by both houses of parliament and had 100% support” – Sadananda Gowda, Union Law Minister

“It is a flawed judgment ignoring the unanimous will of parliament, half the state legislatures and the will of the people” – Mukul Rohatgi, Attorney General of India

 

But, the eminent lawyers such as Prasanth Bhushan, Ram Jethmalani and some of the former chief justices voiced the contrary but in support of the SC’s verdict.

This blog further dwells upon explaining the issue in brief and constitutional interpretation of the same.

What is the issue?

After NJAC is scrapped down by terming it ‘unconstitutional’ by the Supreme Court, the old collegium system is restored. The collegium setup is seen as judges appointing judges. The collegium system is 22-year-old in which a collegium of senior most judges of Supreme Court led by Chief Justice of India recommend appointments and transfers of all judges and chief justices of Supreme Court and High Courts. The President of India will make judicial appointments upon these recommendations. The collegium system is a result of three judgments of the Supreme Court which is famously known as “Three Judges Case” meaning three judgments from three different constitutional benches of the apex Court. There have been several flaws in the Collegium system that lack transparency in making judicial appointments. Taking note of this, as soon as the new Government arrived in Delhi in 2014, it started working on the issue. Then, came up with the new “National Judicial Appointments Committee” through a constitutional amendment (99^th amendment) adding it to the Article 124a of Indian constitution.

 

The composition of NJAC:

-Chief Justice of India as ex officio chairman

-Two senior most judges of Supreme Court next to CJI

-Union Law Minister

-And Two Eminent persons (at least one from SC/ST/minorities including women) chosen by CJI, Prime Minister and the Leader of Opposition.

 

This composition would recommend the appointments/transfers to the President who makes it.

The main controversy lies in the composition. The inclusion of non-constitutional outsiders (two eminent persons) for the crucial job of judicial appointments is the point of conflict. NJAC act gives the power of veto to any of the two members of the committee to overrule to decisions made by other members. After all two eminent persons are chosen by political leaders, the outsider influence on judiciary becomes inevitable if this system is implemented.

Constitutionally Speaking:

The Supreme Court of India quashed NJAC act by terming it “unconstitutional” because it feels that the act violates “basic structure” of Indian constitution which is completely defined by the Supreme Court as and when required. That means Indian constitution does not explain “basic structure” of it, however being interpreted by the judiciary.

Article 13 of Indian Constitution declares that all ‘laws’ that are inconsistent with or in derogation of any of the fundamental rights is null and void. This power of “judicial review” is conferred on the Supreme Court (Article 32) and the high courts (Article 226) that can declare a law unconstitutional and invalid. The term ‘law’ includes amendments to the Constitution. The Constitution as a whole implicitly stressed that “the Supreme Court of India is the custodian of Indian Constitution”.

You may think that the article 13 refers to fundamental rights alone but to implement all our fundamental rights in the full spirit, an “Independent Judiciary” is a must. Now, SC in its judgment says “NJAC is a threat to independent judiciary”.

As per Article 368 of Indian Constitution, any constitutional amendment pertaining to the Supreme Court and High Courts require special majority in the Parliament and ratification by half the states. And NJAC successfully passed all stages and got accent by the President of India.

That means the whole process of framing NJAC is absolutely constitutional which is now termed ‘unconstitutional’ by the Supreme Court. But, the process of Supreme Court repealing NJAC is also constitutional.

The question lies in “How two constitutional processes can generate an unconstitutional act? “

This question needs a much broader thinking. The independent judiciary is one of the bedrock principles of democracy. Legislature, Executive and Judiciary are three pillars of The DEMOCRATIC REPUBLIC of India. Each organ has its own functional sphere. Of course, there is some bond between the executive and legislature. The circumstances like the recent judgment cannot be debated as tussle between these organs, instead they all should co-operate with each other to smoothen the democratic processes.

Now, in particular to the NJAC row, it has two solutions:

1. Continue with the collegium system through a constant fixing of its flaws.
2. It is clear that Supreme Court doesn’t accept the outsider hand on the judicial appointments, the legislature should reconsider the composition of NJAC which is acceptable to the Supreme Court. The legislature should work with judiciary in the first place.

Conclusion: The politician class of the ruling party describes the judgment as tyranny of unelected over elected. Though they have got their freedom of speech which is a fundamental right, it is not the way moving forward. Now, the parliament should find all possible ways to work with the judicial system subject to the sovereignty of judiciary as well as parliament. In a constitution where “Equal protection by law and Equal protection of Law” (Article 14) is the founding principle, the transparency in Judicial appointments is a must.

 

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address:

Subscribe

 

 

 

Tribute to a common man with big dreams

Former President Avul Pakir Jainulabdeen Abdul Kalam (October 15, 1931 – July 27, 2015) died at a hospital in Shillong suffering severe cardiac arrest.

As soon as the breaking news about his death came, social media channels are flooded with R.I.P posts. As APJ is unique as always had been, these posts departing from a usual manner, described various stories about him. APJ reportedly met about 15 million students in the last decade sharing his vision to mission thoughts. In the last ten years, he toured across the world only to become People’s president as he is affectionately called.

These Quora threads describes them all: 

Why is Abdul Kalam most loved and respected by everyone?

What was it like to meet APJ Abdul Kalam?

 

 

If I have to write down my experiences, I went to his speeches twice, one during my school days and another when he visited our college.

I still remember his answer to a question :

A girl asked “I want to see a corruption free India. How exactly can we get rid of  this menace?”

APJ : It is quite simple.

Take a pledge

• I will not bribe anybody
• I will not allow my family to do it

That’s as simple as that. Your dream to see a corruption free India becomes reality.

The only scientist-president:

This is an extract from Turning Point: A Journey through Challenges, he describes the events leading up to becoming 11^th president of India.

The morning of 10 June 2002 was like any other day in the beautiful environment of Anna University, where I had been working since December 2001. I had been enjoying my time in the large, tranquil campus, working with professors and inquisitive students on research projects and teaching. The authorized strength of my class was sixty students, but during every lecture, the classroom had more than 350 students and there was no way one could control the number of participants. My purpose was to understand the aspirations of the youth, to share my experiences from my many national missions and to evolve approaches for the application of technology for societal transformation through a specially designed course of ten lectures for postgraduate students.

As I was walking back, Prof A Kalanidhi, the vice-chancellor of Anna University, joined me. He said that my office had received many telephone calls during the day and someone was frantically trying to get in touch with me. As soon as I reached my rooms, I found the telephone was ringing. When I answered, a voice on the other end said, ‘The prime minister wants to talk to you.’

While I was waiting to be connected to the PM, Chandrababu Naidu, who was the chief minister of Andhra Pradesh, called me on my cellphone. He told me to expect an important call from the prime minister, adding, ‘Please do not say no.’

While I was talking to Naidu, the call from Atal Bihari Vajpayee materialized.

He said, ‘Kalam, how is your academic life?’

‘It is fantastic,’ I answered. Vajpayee continued, ‘We have some very important news for you. Just now, I am coming from a special meeting attended by leaders of all the coalition parties. We have decided unanimously that the nation needs you as its Rashtrapati. I have to announce this tonight. I would like to have your concurrence. I need only a “Yes”, not a “No”.’ Vajpayee, I might mention, was heading the National Democratic Alliance (NDA), a coalition of almost two dozen parties, and it was not always easy getting unanimity.

I hadn’t even had time to sit down after entering the room. Different images of the future appeared before me. One was that of being always surrounded by students and teachers. In the other, I was addressing Parliament with a vision for the nation. A decision matrix was evolving in my mind. I said, ‘Vajpayeeji (as I normally addressed him), can you give me two hours’ time to decide? It is also necessary that there be a consensus among all political parties on my nomination as presidential candidate.’

Vajpayee said, ‘After you agree, we will work for a consensus.’

Over the next two hours, I must have made thirty telephone calls to my close friends. Among them were people in academia and friends in the civil services and in politics too. One view that came across was that I was enjoying an academic life, which is my passion and love, and I shouldn’t disturb it. The second view was that this was an opportunity to put forth the India 2020 vision in front of the nation and Parliament, and that I must jump at it. Exactly after two hours, I was connected to the prime minister. I said, ‘Vajpayeeji, I consider this to be a very important mission and I would like to be an all-party candidate.’

He said, ‘Yes, we will work for it, thank you.’

The news travelled very fast indeed. Within 15 minutes, the news of my choice as presidential candidate was known throughout the country. Immediately, I was bombarded with an unmanageable number of telephone calls, my security was intensified and a large number of visitors gathered in my room.

The same day, Vajpayee consulted with Mrs Sonia Gandhi, the opposition leader, about the choice of candidate. When Mrs Gandhi asked whether the NDA’s choice was final, the prime minister responded in the affirmative. After due consultation with her party members and coalition partners, Mrs Gandhi announced the support of the Indian National Congress (INC) to my candidature on 17 June 2002. I would have loved to get the support of the Left parties also but they decided to nominate their own candidate. As soon as I agreed to be a candidate for the presidency, a huge number of write-ups began to appear about me. Many questions were raised by the media. In essence, they were asking, how could a non-political person, particularly a scientist, become president of the nation?

Source:Internet. However, you may buy this book here to read further.

What is Left Behind?

It is work.  Yes, it is responsibility that is left on us to carry forward his vision to make India a developed country. From Kalam’s quote :

The country doesn’t deserve anything less than success from us. Let us aim for success.

 

Share the article by hitting the share buttons below.

Reshaping India’s foreign policy

Are you frustrated over Narendra Modi’s frequent foreign trips? Ever wondered why he tours the world or even to the smallest of small countries? To clear your minds, this article dwells upon how India benefits from Modi’s foreign tours.

“For me, Globalisation is the manifestation of Nationalism”, says Modi in Japan. India is the second fastest growing country after China. And all economic power houses (World Bank, IMF etc.) are confident of India surpassing China in terms of GDP growth in next five years or so. Given such potential for India’s growth, India must consistently engage in trade and business relations across the world for various reasons. Politics, Business and Trade are interdependent and are relevant both within and out of India.

Narendra Modi’s first stop was Bhutan followed by Brazil and other countries. Here is why India should build good relations with these countries.

• Bhutan: India signed hydro power projects on this state visit. Bhutan has been slowly moving towards China’s side and this trip was to bring back the country to our sphere.
• Brazil: To attend BRICS summit 2014. BRICS bank was established to fund infrastructure needs of all five member countries. First BRICS bank President is Indian. Govt. recently announced K.V.Kamath for the post.
• Nepal: Narendra Modi is power hungry and he therefore promised uninterrupted power supply to all parts of the country. Nepal has huge potential of power generation especially hydro power. India announced 1bn$ support to Nepal during this trip.
• Japan: Narendra Modi, as Chief Minister of Gujarat had good relations with Japan. His Japan visit promised 35bn$ investments for the next five years. Investments involving solar energy, infrastructure projects, industrial corridors are on cards.
• United States of America: To attend United Nations General Assembly meeting. He met various business leaders and asked them to make in India. This visit helped reinforcing relations with US. As a result, Obama attended our Republic Day parade. Here is what US Prez Obama has to say about Modi.

chai pe Charcha with American counterpart

• Myanmar: To attend ASEAN (Association of South East Asian Nations) summit. India’s engagement with south east countries is likely to spur development of North-east states of India like Tripura, Mizoram etc.
• Australia: To attend G20 Summit. The trip’s agenda topped trade and culture. India signed pact on uranium which Australia will supply. Along with uranium, huge potential of rich mineral resources of Australia come to India’s benefit.
• Fiji: A small Island in Pacific Ocean. Good relations with Fiji can help India increase its grip over Pacific Oceania where China considers itself as supreme authority over pacific waters. Cultural diplomacy was also on the agenda.
• Nepal: Second visit to Nepal to attend SAARC summit. The policy of “Neighbourhood First” is evident.
• Seychelles: A small Island in Indian Ocean. India signed pacts on ocean security, renewable energy etc. India helps Seychelles build its naval strength.
• Sri Lanka: Sri Lanka’s new presidential elections were very much like Indian elections, the elections that hoped for change. Sri Lanka under previous Govt. had been inclined more towards China which changed under Sirisena’s govt. Modi has been driver to divert Sri Lanka from China towards India. All diplomacy on Indian Ocean waters is to concentrate on free trade and maritime security which is very important to India’s security.
• Singapore: To attend the state funeral of Lee Kuan Yew, founding father of Singapore, a city-country.
• France: Business topped the agenda. He visited Airbus and various other business houses and asked them to explore investment opportunities in India. France will deliver Rafael helicopters to India.
• Germany: Germany is the one of the hubs for manufacturing. India was the main partner for the event, Hannover Messe, a manufacturing show where exhibits come from across the world. New technologies and products were on show. Narendra Modi hard sold “Make In India” programme in a unique way. Click here to see India’s unique performance at the inauguration of Hannover.

  

  At Hannover Messe

• Canada: To strengthen state relations. Canada has been a house for large numbers of Indian Diaspora.
• China: You don’t need much introduction to Indo-China relations. Border, trade grabs the show. China readies huge investment plans into India’s infrastructure projects.
• Mongolia: Modi is the first prime minister to visit Mongolia. Culture ties are strengthened. India announced 1bn$ credit to Mongolia.
• South Korea: It is house for electronics manufacturing. With growing demand in India, electronic manufacturers evince interest in establishing their plants in India. Under Digital India programme, India aims to achieve net zero imports on electronics by 2020. It is right time that Modi visited South Korea.
• Bangladesh: Modi accompanied by Mamatha Banerjee, chief minister of West Bengal visited Bangladesh. 40-year-old land agreement came to an end and this is one of the biggest achievements of Modi govt. India inked several pacts to boost security and trade across the border.

Sushma Swaraj with Modi

Narendra Modi will be visiting Uzbekistan, Kazakhstan, Russia, Turkmenistan, Tajikistan, and Kyrgyzstan on a weeklong visit from 6th July. Central Asia is a pivot point for all politics of Russia and United states. Now, Indian Prime Minister visits the region which is something interesting. Sushma Swaraj, Minister of External Affairs is also equally responsible to the whole episode of reshaping India’s foreign policy. Pro-activeness and focused work are her strengths.

In foreign policy regard, it is tough for any leader to beat Modi. If you still say to Modi, “Concentrate on domestic affairs instead of touring foreign nations”; for your kind information, there is whole administration that remains in the country while the Prime Minister leaves on a foreign trip.

Hope your frustration over Modi’s foreign tours has become little less.

States Play Diplomacy

After the NDA government assumed office, Prime Minister Narendra Modi has been successful in pursuing foreign policy and consistent in engaging with other nations. From USA lifting Modi’s visa ban to US president’s Republic Day visit to Yemen evacuation, Modi has proven his mettle in making his external affairs team proactive in framing foreign policy. Now, it is first time that the Prime Minister urges states to actively participate in foreign engagement.

21^st century is going to manifest aggressive globalisation be it political or economic globalisation. Therefore it is evident that

Business will eventually be on foreign policy agenda of a country like India.

If we dwell upon the history, it is S.M.Krishna, former Chief Minister of Karnataka and Nara Chandrababu Naidu, Chief Minister of Andhra Pradesh who actively engaged with foreign nations in promoting business and trade. Both worked hard in placing India at the top of Information Technology exports. Hence, Bengaluru and Hyderabad witnessed rapid progress in terms of infrastructure and economic activity. Following them, Narendra Modi while serving as Chief Minister of Gujarat actively visited foreign countries to attract investments and is known as pioneer of Global business summits. ‘Vibrant Gujarat’, the first of its kind global business gathering is now followed by such meetings being organised by states like Rajasthan, West Bengal, Madhya Pradesh. Some states including Tamil Nadu and Maharashtra are set to hold such meetings this year. Modi having felt that states have more potential in attracting foreign investments, urged states in that regard.

Countries like Canada, China have been successful in making their provinces play a pivotal role in foreign policy, Government of India too is trying hard to work with states in promoting diplomatic relations. Sending a delegation led by Chandrababu Naidu, CM-AP on China visit is a welcome step. During this visit, the Chief Minister not only promoted his state and its opportunities but also held fruitful meetings with governors of Guizhou and Sichuan provinces promoting bilateral and sister state relations. This tour was planned by the Ministry Of External Affairs upon the request from Chinese side ahead of Prime Minister’s China visit next month. In a great fillip to Government’s Smart Cities project , interested parties like Singapore, Japan have been directly engaging with state governments in building them.

What is still missing in action is the “proper roadmap” to make states active in playing diplomacy in keeping national interests above everything. This becomes delicate while dealing with Border States of Tamil Nadu, Jammu Kashmir, and West Bengal because there are some unresolved issues like that of Tamil fishermen-Sri Lanka, Kashmir-Pakistan. Now, Narendra Modi Government which is aspiring for the empowerment of States for a larger role keeping larger interests, it is time to lay down perfect framework to consistently pursue the matter with states. Keeping politics aside, there should be friendly relations between the Minister of External Affairs and State Governments. Knowing ‘Diplomacy’, a central subject, it would be better if external affairs body is created for every state with local government officials playing definitive role to help states attract direct Foreign Direct Investments (FDI). More leaders like S.M. Krishna, Chandrababu Naidu are key to define pivotal role of states in playing diplomacy.

Digital India looks promising

Digital India as defined by the Government of India (GOI), a programme to transform India into a digitally empowered society and knowledge economy. It is being co-ordinated by the Department of Electronics and Information technology (DEITY), GOI but is an umbrella programme covering all other departments with a single goal i.e., to prepare India for a knowledge future. The move is laudable as common branding is now possible with “Digital India”. Bharatiya Janata Party led by tech savvy Narendra Modi promised 100 smart cities by 2019 and broadband connectivity to every village.  India is the second most populous country with largest population of non-internet users in any country. Indian economy is set to explode as world sees with a different outlook. There is no doubt internet user base in India increase exponentially in the next coming years. India is a country of mobile phones, said Jack Ma-Founder, Alibaba. Mobile revolution helps GOI achieve targets easier than expected.

Targets:

A whopping sum of one lakh crores are being spent for the initiative.

Impact of Digital India by 2019 (Source: DEITY, GOI)

• Broadband in 2.5 lakh villages, universal phone connectivity •
• Net Zero Imports by 2020
• 400,000 Public Internet Access Points
• Wi-Fi in 2.5 lakh schools, all universities; Public Wi-Fi hotspots for citizens
• Digital Inclusion: 1.7 Cr trained for IT, Telecom and Electronics Jobs
• Job creation: Direct 1.7 Cr. and Indirect at least 8.5 Cr
• e-Governance & e-Services: Across government
• India to be leader in IT use in services – health, education, banking
• Digitally empowered citizens – public cloud, internet access

Digital India looks promising as aggressive bidding by telecom companies is seen in the recent auction. Given that the government is taking electronic route in allotting spectrum and coal blocks, it is promoting the initiative. The government itself is overseeing the work of laying broadband highways to each panchayat without outsourcing it to the private agencies. GOI plans to expand (Common Services Centres (CSCs) to 2.5Lakh Gram Panchayats. It is simply not a goal but to enhance delivery of services to all its citizens. Digital services must include visa, passport, tax filings, land registrations, office, police, pensions, health, education, treasuries, agriculture, excise, insurance, banking, public distribution system, business, procurements and many.

Roadblocks:

 #Affordability- It is OK that the Government is trying hard to empower every village digitally and bring transparency through e-delivery of citizen services but how people can afford high speed internet and electronic gadgets is to be seen. Our leaders like Narendra Modi and Nara Chandrababu Naidu are bullish over National optical Fibre Network (NOFN) project. This project covers optical fibre connectivity to every household. If states wish to take up the project on their own, Centre will fund the same. But so far, only Andhra Pradesh has taken up the initiative with centre’s co-operation. Centre hopes other states too would take up soon. Mobile phones have already become cheaper especially smart phones come handy at attractive prices. The previous UPA govt. tied up with DataWind to provide tablet PCs at subsidised price but halted for various reasons.

It is highly expected that the present govt. will proceed considering subsidised gadgets and data charges.

#Skills- Large section of population have no access to internet and therefore lack internet skills and have no idea of using electronic gadgets. With the technology growing rapidly, it is up to Government to

make people ready for a digital changeover. Make people proactive in adapting digital technologies

#Infrastructure- Given a boost to infrastructure, budgetary support specific to establishing IT infrastructure is need of the hour. Many global entities including IBM, Microsoft, Facebook, Twitter have already shown interest in partnering with the govt. Cisco has come forward to help build digital education modules.

Benefits:

The digital revolution should be transparency driven. Transformation of political ecosystem in this country is a big positive as it brings in transparency. Even companies/industries which are digitally connected are about 26% more profitable than those which are not. It is from a farmer to an industrialist who can find ways to benefit from the digital revolution.

Everyone’s participation is necessary to build Digital India

Subscribe to my posts by hitting the Follow button

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address:

Subscribe

India is Banking

Since India started worrying about its economy, there have been several measures to achieve financial inclusion. Financial inclusion is a great tool to get to the ground reality of financial standards of all citizens. It can also help arrest leakages in the delivery of welfare programmes. Census 2011 estimated that out of 24.67 Crore households, 14.48 Crore (58.7%) households had access to banking services. In specific, only 54.46% of rural and 67.68% of urban households are connected with banking system and are included financially. The present banking network of the country (as on 31.03.2014) comprises of a bank branch network of 1,15,082 and ATM network of 1,60,055. The efforts to achieve financial inclusion by the Govt. Of India included constituting a committee under the chairmanship of Dr.C.Rangarajan. The report evidently interpreted the financial inclusion as an instrument for social transformation. Access to finance by the poor and deprived sections is key to inclusive growth.

The launch of Pradhan Mantri Jan Dhan Yojana(PMJDY) in the wake expediting the process is significant at times when world sees it is “India’s chance to fly”. PMJDY is a mass programme aimed at providing basic banking services to every household in this country. The programme has been channelled to cover every nuke and corner of the country which India has not attempted before. For example, the govt. launched “Swabhiman”, a scheme aimed at opening bank accounts for every household in villages whose population is more than 2000. But, PMJDY without any constraints to cover both rural and urban households. While Aadhar card laid foundation for large scale financial inclusion reforms, PMJDY followed it.

Kerala is the first state to have atleast one bank account for each household i.e., reached targets set by PMJDY. This could not be possible unless state government of kerala actively took the initiation forward. For the first time in India, states are empowered to oversee national interests in this regard. The state of Andhra Pradesh made tremendous progress in financial inclusion by seeding every welfare scheme with the Aadhar card. This is true to the spirits of competitive federalism. Arun Jaitley in his budget speech announced that over 12 crore households were brought into financial mainstream in just 90 days breaking all predictions. PMJDY provides a basic savings bank deposit account (as per the definition of RBI). This account is a zero balance account and would offer a RUPAY debit card with in-built accidental insurance upto 1Lakh. RUPAY, an indigenous debit card developed by National Payments Corporation of India (NPCI) would promote cashless transactions which economy wants for many reasons.

When I started to believe that, a 12 digit Aadhar number itself can act as an account number which would further ease account opening with post offices, the launch of PMJDY made me understand that “India cannot wait because it is already late” for that matter. Corporate banks are made involved in the programme which is a good sign. This would further increase FDI in the banking space. It is appreciable that the new govt. did not drop Aadhar rather continued strengthening the process of Direct Benefit Transfers (DBT). Now, it is clear that financial inclusion is not a onetime effort; it is an ongoing process. It is the only way India can overcome poverty through directing subsidies correctly. With the combined efforts of all stakeholders, viz.,policy makers, bankers, market regulators, NGOs and other similar entities, this can be made possible.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address:

Subscribe

Banking On Renewables

Renewable energy is future. The world has made significant growth in generating renewable energy by reducing the costs drastically. While power is one of the basic amenities for a person, about 280 million people in India don’t have power to their households. The new Government came to power with a sounding mantra “Power For All” which is impossible until it recognises the need for Renewables and their impact in coming years. Only 12% of total power generated in India is renewable. Tamil Nadu tops the list followed by Gujarat. The Economic Survey 2014-15 dated 27th February,2015 forecasts the sector to generate business opportunities worth 160billion$ and immediate scaling up to 175 GW of renewable energy. India has already allowed 100% FDI(Foreign Direct Investment) in generating Renewable Energy. Only 28 billion$ foreign investment is seen in the sector since 2000. That means FDI has to pickup with high pace effective immediately. The survey has also mentioned the need to establish Renewable Energy University to promote academics and research in this area. But, allotting 150 crores towards Research & Development in the budget statement is disappointing as this meagre funds are obviously not sufficient to boost innovations within the country. The new Government after assuming office in June last year swiftly announced goals for power sector and specifically 100 GW of solar energy generation by 2022. REINVEST2015 is a summit addressed in NewDelhi to invite Global Investors to invest in Renewable Energy in India. All targets were reiterated at the summit by the Prime Minister Of India, Narendra Modi and Energy Minister, Piyush Goyal. 266 GW of Renewable Energy(more than survey’s expectation) is committed by various companies across the globe including domestic producers at the summit. Now, it is up to Ministry Of New And Renewable Energy(MNRE) to create an environment to boost hastle free investments in this area. Because India ranks 142 in the “Ease Of Doing Business” index (source: doingbusiness.org by world bank) which is worse than its neighboring countries like Pakistan and Nepal.

How to overcome challenges?
#Besides generation of power, India has to learn consumption. Government is already promoting the use of LED bulbs for efficient power consumption but lacks clarity. Such policies should always be accompanied by planning and systematic budgetary support.
#Reduction in costs is a result of innovation. Unless we promote science and innovation in this area, it is impossible to achieve renewable energy targets.
#Build infrastructure adopting best practices in order to minimise transmission and distribution losses.
#Make In India campaign adopted by the government should include Energy sector as its thrust sector.
#Facilitate easy approvals for renewable power projects through internet and auction routes. Because, one CEO at Davos summit  had to say that his firm sought 192 different approvals to start business in India.
#Government should intensify ‘Roof Top Solar Panels-Grid linked’ scheme. This scheme facilitate households to link surplus power generated on roof tops with the grid for which they earn money. Empowerment of rural women can be possible with this.
#Coordination between Energy Ministry and Environment Ministry is vital in sanctioning clean projects.

Cheap and Clean Fuel

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address:

Subscribe

Revamping Indian Railways

Indian Railways is one of the largest transportation networks in the world. Still there are places in this country awaiting the rail connectivity. This largest network is now cash strapped. India is a welfare state and therefore it is evident that Indian railways (A PSU Enterprise) is struck between its commercial operations and state’s welfare perspective. Indian Railways is the obvious choice when one wants to look at India’s infrastructure status. While the new Govt. flagged off the inaugural train to the north-east state of Meghalaya, the Prime Minister reiterated the need to improve the network to fit better standards.

Railway Budget 2014-15 revealed smashing numbers saying over 5 lakh crores needed for ongoing projects. Number might be so strong but there is no surprise if you realise that only 317 of 684 projects worth 1.57 lakh crores are completed in last 30 years. So, the mathematics is clear that rest projects worth only half the said amount grew to about 5 lakh crore correcting all inflationary and commodity conditions. Railways have always been an element of politics in sanctioning rail routes and other commercial interests. The passenger segment and the freight activities have been hurting in the recent past.

The government’s commitment in improving infrastructure in India can be showcased by revamping up its own cash strapped enterprise i.e., Indian railways. Last Railway budget is no new because it stressed on improving fiscal strength, addressing safety, modernising the network to improve passenger amenities and others as exactly did by previous budget statements of previous governments. In 2006, the ministry had also set-up Rail Land Development Authority (RLDA) to effectively utilise vacant railway land for commercial purpose. Despite all these, it is clear that we are unaware of any improvement.

As India awaits Railways to improve its conditions, it is time to devise a revival plan for the same. While the technology allows cost cuts, a strong IT infrastructure is certainly a focus. Modernisation of railway stations across India should be able to measure a strong balance between welfare and commercial activities. Unmanned railway crossings continue to act as death traps for many. The major hurdle in achieving all these is investments. Investment and technology are interdependent and therefore all modes of mobilising money could be explored including PPP (Public Private Partnership) and BOT (Build-Operate-Transfer) modes. Building infrastructure is not sufficient but leveraging the timely infusion of funds for maintaining them is a big task ahead. Minimizing project sanctions in a year and prioritising them without any influence from the political sphere can help Railways concentrate on the completion of those projects with strict time-frames. While the growing urbanisation accommodates shopping malls and other entertainment houses inside railway stations, it is up to us to create an environment for the same. Underground storeys can house them all. Pay to use toilets, decent waiting rooms, cleanliness, availability of fresh food and water can be a part of renovation.

Besides all these, the administrative network should be very flexible to growing needs of passengers. Co-ordination between various departments in achieving targets is the need of the hour. Can Indian Railways reach better standards? Suresh Prabhu as Railway minister is a good choice. Only time can prove his mettle in handling the biggest task (Revival of Indian Railways).

Hope for a new and safe rail travel.

Subscribe to my posts by hitting below.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address:

Subscribe

2014: A Quick Look Back

#2014 is a year of challenges and reforms.
Here is a quick look back of events in which some marked reforms and others presented challenges.
Top Five of such events in our 365 days long journey :
General Elections : Narendra Modi is the star of the election year. This election is the biggest event in the history of India and has the potential to be for a better India. The agenda of development made citizens vote for a majority and powerful Government at the centre. Rise of Narendra Modi costs Indian National Congress’ ever seen poll debacle. Other old parties of Jantha Parivar fought the election with same old communal politics which yielded only a loss.

Diplomacy Redefined : Narendra Modi redefined Diplomacy after he assumed office. He invited all SAARC leaders to New Delhi for the swearing-in function advocating the “Neighbours First” policy.

PM with Chinese counterpart

Be it Madison square or AllPhones arena, he defined the rockstar concert style. 2015 begins with a high node as US president Barack Obama will be in capital to watch Republic Day parade. The year also presented some challenges like border tensions with Pakistan and China.

Let’s see how our PM grabs an opportunity to resolve border conflicts.

Industry sentiments at new high :  Markets have surged to all time high in the year 2014. Industry sentiments are on the rise. Investors are bullish over Indian markets. The new Govt. is still trying hard to promote the ease of doing business in this country. Therefore Achchhe Din continues to come for markets in 2015 too.

Extremism : India has witnessed less less terror disturbances last year though Bengaluru and Burdwan blasts signal the presence of terrorist groups. The infiltration of terrorists from Pakistan continued last year only with the aid of Pakistani rangers. The recent Peshawar carnage is a cowardly act, alarmed all world nations the need to fight terror together.

Safety for women : Crimes against women and children did not get enough attention from the government last year. A cab driver from Uber indulged in a shameless act which led to the ban of Uber. Later the ban was lifted with new regulations in place. Kerala being the most literate state tops in sexual assaults against children. This is the most serious and an alarming issue which still awaits a strong law. 

You may join the discussion on women safety here : http://www.fb.com/stoptheblameindia

 

 

Final Touch : Don’t get too emotional with #NewYearResolutions.

Happy new year.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address:

Subscribe

 

Make In India Push

The new Government promises to turn India as preferable manufacturing destination. With much promoted initiative “Make In India”, Investors looked back to country’s untapped potential in certain sectors including manufacturing.
Not surprisingly, The Government of India took internet route to promote the ambition. Interestingly, Its social media handles run quiz educating the community about updated policies in this regard with the hashtag #MakeInIndia being active on social media.

If you are interested too, then
www.makeinindia.gov.in/
https://www.facebook.com/makeinindiaofficial
www.twitter.com/makeinindia_

67 years old independent India is one of the fastest growing economies in the world. After liberalising the economy in 1990s, Investments surged and growth multiplied. With changing trends, there is need to simplify the whole economy to create pro-business environment. Investors around the world are skeptical about red-tapism.
India has recorded significant growth in exporting automobiles. Imagine your dream car running on foreign roads with ‘Made In India’ tag. How proud ?

There is another side to it:
RBI Governor has cautioned the Government saying the demand in developed nations is decreasing and so, the market being India – ‘Make For India’.

It is obvious that China and India are biggest consumer markets. China has been successful as global manufacturing hub and now India follows the same.
Here are some must haves in the process :
#Simplified tax structure is the need of the hour and hence GST on cards.

#Labour reforms : It simply doesn’t only include payouts, but also the cultural side. When a foreign company comes to set up its unit near a village, communication gap between company officials and villagers need to be filled. This is learnt from British rule.

#Infrastructure : Capital being its biggest roadblock, One needs to explore ways to fuel big-ticket infra projects.

#Power : 24*7 power supply is our netas’ election promise. Serious crisis that the country has faced in this sector is corruption. Biggest ‘Coal Scam’ ruined the sector and investor’s hope. Transparent auction as promised by the new Govt. yet to be observed.

#Telecommunication : Though FDI allowed is 100%, India’s telecommunication is incomplete.

#Government policies and regulations should never increase cost of production.

#Reforms in education to be rolled out with long term goals.

India Inc. set to make only with the process being simpler.

Last but not least, India Inc. expects long pending rate cut from RBI. Early 2015 to see Central Bank’s soft stand. There is no need for India to compromise on its values while making economic reforms.

Write your comments below. Discussion is always welcome. Also ask your friends to join.