Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday 10 June 2015

RE: LAND ACQUISITION BILL


Dear Shri Aiyar ,


Thank you for your feedback

I am glad to find that our views coincide

Some time back , I had published a blog ( on my personal web site , www.hemenparekh.in ) , re " Allocation of Nation's Natural Resources " , following your article on the same subject in TOI

I reproduce below my blog , thinking that it might interest you

with regards,

hemen  parekh

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Needed  some  simple  answers 



This is with reference to the controversy surrounding the pricing of KG-6 gas of Reliance , which started with $ 2.4 , is currently $ 4.2 and slated to rise to $ 8.4 / unit , from April 2014


Writing in yesterday's Times of India , ( Swaminomics ) , eminent economist , Swaminathan Anklesaria Aiyar , made following points  :



>   Reliance ( KG - 6 ) accounts for only 10 % of the gas production in our
     country . Balance 90 % is by Public Sector Companies such as ONGC etc


>   Hence , any increase in selling price will mostly benefit government itself

     ( Any idea , what will government do with this windfall  ? )


>   Price - hike envisaged is recommended by a committee headed by Mr C
     Rangrajan  ( - implying , infallible / sacrosanct  ?  )


>   By introducing price control on gas , " India's name is mud globally , and
     top exploration companies now avoid India "


>   An economic rule of thumb is that " traded Commodities " should be
     priced on par with the import price ( my question : irrespective of the
     actual cost of production in India ? )


     The Rangrajan price of $ 8 / unit , is well below the import price



Not being an economist , I am confused  !


May be Mr Aiyar can dispel my following doubts  :


#   By taking out of our own soil ( or sea ) , does gas become a " traded
      commodity "  ? - even if entirely sold in India ?


#    Is KG-6 gas a " Natural Resource " which belongs to the Nation - and
       not to Reliance  ?


#    Is Reliance the " Owner " of the gas or a mere " Contractor "  ?


#    Would Mr Aiyar , want the Central Government to extend the same logic
      to other " Natural Resources " ( belonging to the country ) , being dug
      out from the earth ( by private companies ) , such as :



      *   Oil / Coal / Shale Gas etc  (  Fossil Fuels )


      *   Ores of Iron / Copper / Zinc / Aluminum etc


      *   Trees ( timber ) that grow in our jungles


      *   Any number of minor minerals / chemicals



      Should these too , be treated as " Traded Commodities " , whose local
      selling prices must be same as Imported prices ?



#    What about the air / wind that blows freely over our land  ?


      Does it belong to the Nation or not  ?


      Or , does it belong to the Companies setting up  WIND FARMS  , to
      generate electricity  ?


      Should such power be " Price Controlled " or not  ?




#    What about the Sunlight that falls on our vast land  ?


      Who does it belong to  ? To our government or to the companies setting
      up mega Solar Power Projects  ?


     Should there be a price control on such power - produced , using a  National Resource  ?




#    What about the hydro - power generated by private sector companies
     from the water flowing in our Country's rivers  ?


     Does - or does not - that water belong to the Nation  ?


     Should not such power be price - controlled  ?




#   Tomorrow , if a private sector company ( or a consortium of Indian
      Companies , in joint venture with foreign companies ) , invest Rs 1 Lakh
      Crores , to build the 22 Km long Kalpsar Dam across the Bay of Cambay
      in Gujarat , and generate 10,000 MW of power from Oceanic Tides  , -
     can they be allowed to set any selling price  ? At International price  ?


     I suppose , it would be next to impossible for them to " Export " such
     power beyond the shores of India  !



#   Incidentally , what about the Airwaves ( the 2G / 3G Spectrum )  ?


     Is that also a Natural Resource which belongs to the Nation ?


     Having " licensed " it from the Central Government  , can Mobile
     Phone companies , set any selling prices for their services  ?

Even with a combined debt of around Rs 2 Lakh Crores , how are these
    Mobile companies , able to deliver ( nearly ? ) cheapest mobile phone

    services in the entire World ? May be at 10 % of international price  ?




#   In ALL of the above - mentioned cases , should Central Government
     carefully calculate / frequently audit , the " Cost of Production "  ? Then
    link the " Local / Domestic , Selling Prices "  to such " Cost of Production "
    allowing certain  pre-determined " Return on Investment "  ?



#   Even as we agree that " Export prices " of gas are governed by prevailing   
     international prices , how come the " Domestic Prices " of gas are vastly
     different in different countries , ranging from under $ 1 to $ 5 / unit  ?


     Does this itself , not prove that , in each country , domestic prices are
    linked to their own local " Cost of Production "  ?



#  Very often , have we not exported , food grains , at " Below the Cost " ?




Mr  AIYAR ,



You will be doing a great service to millions of ignoramus like me , by offering your own " Views " on the points raised above


And , I suppose , since the fall in production from KG - 6 , is purely and entirely , due to " Technically Sound " reasons , raising of the selling price to
$ 8 ( or even $ 16 / - ! ) , won't result in any increase in production !



Time alone will tell  !




*   hemen  parekh  (  17  Feb  2014  /  Mumbai  )  


From: Swaminathan Aiyar [mailto:SAiyar@cato.org]
Sent: Monday, June 08, 2015 11:51 PM
To: 'Hemen Parekh'
Subject: RE: LAND ACQUISITION BILL

You are on the right track. Farmers should remain owners, and we should have leasing instead of acquisition.
Regards
Swami Aiyar

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Monday, June 08, 2015 12:51 AM
To: Swaminathan Aiyar
Subject: LAND ACQUISITION BILL

Dear Shri Aiyar :


In yesterday's TOI , I read your article re Land Acquisition Bill

Find below , email I sent to Shri Ahluwalia , on 25 May 2015

I have also sent this suggestion to all MPs / MLAs / Ministers etc , using Online Messaging Service of my web site at ,


You may want to use this service yourself


with regards ,

hemen  parekh



(M) 0 - 98,67,55,08,08

Mumbai

PS :

I enjoy reading your articles on Sunday TOI

---------------------------------------------------------


Shri  S S Ahluwalia

Chairman , Joint Committee

Land Acquisition Bill

--------------------------------------

Dear Shri Ahluwalia


I refer to the Press Notice on this subject , inviting views / suggestions from members of public

For your consideration , I submit my views / suggestions as follows

with regards,

hemen  parekh
Mumbai
(M) 0-98,67,55,08,08

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WHY    PENALIZE     POOR     FARMERS   ?


Why take away " ownership " of their land ?

We know that this ownership is not profitable for the farmers

By continuing to till those lands for a pittance , farmers are obliging the rest of the society

They barely manage to eke out a subsistence-level living , even when rains are good

Rest of the times , they remain perpetually  indebted to " Shahukars "

On an average , 17,000 farmers commit suicide each year , when they fail to repay their debt ( - may be , no more than Rs 20,000/- ! )

Have you ever heard a Businessman or an Industrialist commit suicide , after willfully defaulting to repay bank loans of Rs 20 Crores / 200 Crores ?

No , they go on Swiss Holiday ! ( You guessed right why Swiss ! )

How many " Lakhs*Crores " have banks written off as NPA over the years ?

Is any banker losing his / her sleep ?

No !  Just write-off or ask Government for " Re-Capitalization " !

Why can't we write-off our " Societal Debt " to farmers by paying each farmer-family , a sum of Rs 20,000 / - per month ?

That is less than what we ( thru the Central and the State Governments ) have been paying by way of wages to millions of workers employed by PSUs , for the past 60 years  !

Workers who have NO WORK ( - since there is NO DEMAND for what those PSUs produce ? ) , but still troop in every morning to punch attendance - then play cards on the shop-floor for the rest of the day !

Has any Minister / MP / MLA, bothered to visit these PSUs , incognito ?

How many " Lakhs*Crores " of rupees have the honest tax-payers paid over these years , to protect their " Idle / Non Productive " jobs ?

And , did we not pay another " Lakhs*Crores " to hundreds of erstwhile Rajahs / Maharajahs ( - and their children ) for 50 years , by way of " Saliyana " ( Pension / Annuity ) , for divesting of their Kingdoms ?

Even as they were " legally " permitted to retain all of their ill-gotten wealth ,accumulated over the years by plundering the " Praja " ?

So , why can't we take care of our farmers' families for the next 25 years ?

Why this double standard ?

When a clever professional can be paid " Sweat Equity " in an enterprise for contributing his brain power , why can't we pay similar Equity to farmers , for allowing us to use their lands ?

Central Government is planning to fund ( by way of EQUITY ) ,thousands of " Start-Ups " , and has set aside Rs 10,000 Crores for this purpose

Does Central Government believe , any of these will pay dividend for the next 10 years ?

Of Course , not !

Please , have mercy on the farmers , who continue to display the highest " Work Ethics " of any working group , in this country !


*   Do not take away their " Ownership " of their land

*   Request them to allow Governments ( Central + States ) to become
     " Co - Owners "

*  For allowing such " Co-Ownership " , give them EQUITY in the concerned
    Project ( separate SPV for each project )

*  Give them some immediate " Joining Bonus " in cash ( do not call it " Compensation " )

*  Give them monthly " Rental " for land-lease ( do not call it " Subsidy " )



This is all about , " Sabka Saath , Sabka Vikas "

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


(  My  email  to  Shri Gadkariji  on   23 March 2015  )


Dear Nitin Gadkariji,


Farmers are opposing this bill for the following reasons :

>    Low / Inadequate compensation

>    Once land is sold , not being able to benefit from the appreciation of land value , when the project comes up

>   Private parties bought their land at low price and then sold it ( mostly to private builders ) for a whooping profit


I think there is a simple solution to the concerns expressed by the farmers . Please consider the following :


>     Each project will be tied to a specific SPV , created for that purpose only

>    In the first instance , affected farmers will create a " Cooperative Society

>   Co-operative Society will issue shares to each land-donor farmer , in proportion to the QUANTITY / VALUE of the land donated by him

>   In turn , Co-operative Society will receive shares in the SPV , equal to the value of the land + a cash compensation equal to 4 times the value of the land

>  Farmer's shares of Cooperative Society cannot be sold in open market before 5 years but can be gifted to wife / Children

>  Shares of Cooperative Society in the SPV itself cannot be sold for next 10 years

>  The " Cash-Value Compensation " received by the Co-operative Society ( ie 4 times the land value ),  will be deployed as follows :

   *  To be immediately paid in cash to the farmers............ 2 times

   *  To be deposited in the Jan-Dhan Account of each farmer as FIXED DEPOSIT ( with 10 @ interest ).............2 times


Dear Gadkariji ,


My proposal will ensure :


>     Immediate attractive compensation to farmers

>     Recurring income from FD in Jan Dhan account ( for a sustained livelihood )

>     Continued sense of " Ownership " in the SPV / Project , which will facilitate QUICK implementation without resistance

>     Willing farmers themselves canvassing / convincing " Reluctant " farmers

>     No fear of private parties benefiting by appreciation of land value

>    A sense of " Enlarged Participation " thru Co-operative Society representing them on the Board of Directors of SPV

>    Board Representation enabling farmers to ensure that honest decisions are being taken


PLEASE , GIVE  THIS  SUGGESTION   A  CONSIDERATION 


with regards,

hemen  parekh

Mumbai


( M ) 0 - 98,67,55,08,08


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Gujarat Govt to buy land in joint venture with farmers

(  Source :  Times  of  India  /  07  May  2015  )

-------------------------------------------------------------------------



GANDHINAGAR: Even as the Land Acquisition Bill gives heartburn to the Narendra Modi government for being branded as 'anti-farmer' by opposition parties, the Gujarat government has proposed joint ventures (JV) with farmers under the new industrial policy.

The new Gujarat model encourages farmer groups to give their land to Gujarat Industrial Development Corporation (GIDC) to develop industrial parks under a JV with GIDC.

While the scheme was introduced in a different avatar a few years ago, officials say it would work well at a time when acquiring land for industry has become a sensitive issue.

The move promises to be a solution to contain growing discontent over agriculture land acquisition for industrial purpose.

The 'Financial Assistance to Industrial Park' (FAIP) scheme declared recently under the new industrial policy promotes
JVs with farmers to develop industrial parks ranging from 20 to 100 hectares.

"Farmers will be made equity and profit partners in proportion of their land holding. Under the JV, farmers may continue to be owners of the land but may sacrifice their right in lieu of equity and profit rights in the park," said an official.


Saurabh Patel, state government spokesperson and in-charge minister for industry and mines, said, "It is a win-win model for all.

GIDC faces a lot of issues in acquiring private land.

 The new model will motivate farmers."

 Modalities of the JV will be approved by the State Level Expert Committee.


Industrial parks under FAIP will be provided financial assistance of 25% of eligible fixed capital investment in building and infrastructure facilities up to Rs 30 crore excluding the land cost.

Additional Rs 20 crore assistance will be provided if the park developer (JV also) develop hostel and dormitory facility for workers.
The private developer or JV of farmers and GIDC will get 100% reimbursement of stamp duty paid. Individual units will also get 50% stamp duty waiver.




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