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 20 December 2017

THIS WILL TRANSFORM INDIA


Saving  Jobs  :  Creating  Jobs

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


Thank you , Shri Rajiv Kumar  [  NITI  Aayog  ]

Thank you for suggesting setting up of “ Labour Utilization Fund


I refer to the following news report in today’s Hindustan Times :




“ NITI aayog proposes scheme to save jobs from automation “



Federal think tank NITI Aayog has proposed that the government set up a labour utilization fund that will make the country’s workforce more skilled and cost-competitive, encouraging businesses to hire more at a time when automation and the use of artificial intelligence are making low-skill labour redundant.

NITI Aayog vice-chairman Rajiv Kumar said in an interview that the government should consider setting up the fund, which will foot the bill for skilling workers and providing them social security, making workforce more cost-competitive for the industry to employ.

Kumar suggested that instead of capital subsidy for businesses, there was a need for labour subsidy now.

“Just like that, we should have a labour utilization fund.

It doesn’t have to pay salaries but can be used for better training, for paying provident fund contribution and for covering the health costs. In advanced economies, all these things are provided by the public sector,” said Kumar.

Since social security benefits in India do not match those in developed economies, there is a need for a dedicated policy and schemes to lower labour costs, said Kumar, adding that it will also help bridge income inequality in the country.


“The objective of our policy should be maximizing employment generation. If you do that, everything will fall in place,” said Kumar


Dear Shri Rajiv Kumarji :



While drawing up the details of the proposed “ Labour Utilization Fund “ , I request you to consider incorporation of my following suggestion ( sent earlier as Email )


I do hope you can convince Shri Jaitleyji to announce this in his Budget Speech on Feb 01 , 2018







WHAT WOULD BE THE RIGHT APPROACH ?


*  Right approach would be : " Do not give fish to a hungry man / teach him how to
    fish "

 In short , empower them to earn their own living by teaching them " Skills " and by
 gaining " Experience " in use of those skills

Entire cost of this " Skilling " and " Experiencing " to be borne by the Government , till
each targeted poor / unemployed person , either gets gainfully employed or becomes
self-employed

Should he choose to become Self-Employed ( by registering as a " Start Up " ),
exempt him from paying Personal Income Tax for next 10 years

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

HOW TO TRANSLATE THIS " SELF HELP " CONCEPT INTO PRACTICE ?


Divide the implementation in following 3 phases

*   Empowering - 3 years ( Imparting Skills in Industrial Training Institutes )

*   Experiencing - 3 years ( Providing experience in Ind / Commercial Establishments )

*   Self-dependence Phase ( Working in a gainful job or as Self Employed )

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

WHAT SKILLS WILL GET PROVIDED IN ITI ?

Entire range of Manufacturing Industry related skills being currently imparted plus a
whole host of commercial skills required by E Commerce / Fintech / Agriculture
Processing / Payment Banks / Service Sector / BPO / Telecom and emerging sectors

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

HOW SHALL WE MOTIVATE UNEMPLOYED YOUTH TO JOIN ITIs ?


* Each trainee will receive Rs 1000 pm ( for course duration of 3 years )

   This amount will get deposited in Jan Dhan bank account of trainee ( DBT )


HOW CAN WE GET PRIVATE SECTOR PARTICIPATION IN THIS PHASE ?


*  If a Private firm or individual comes forward to set up such a Training Institute ,

   #  Treat it as an Infrastructure SPV

   #  No questions asked as to the source of funds for setting up such ITI

       {  a kind of Amnesty Scheme to convert Black Money into White Money  }

   #  A government grant of Rs 1,000 pm per trainee to such SPV ( DBT in Bank A/C )

If this is done , expect 10,000 SPVs to come up within one year and 10 million youth
to get  trained each year !


HOW CAN WE GET INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS TO PROVIDE
EXPERIENCE TO TRAINEES PASSING OUT OF ITIs ?


*  Amend Apprenticeship Act

Allow all Industrial and Commercial Establishments to engage ANY NUMBER of
   apprentices ( without upper limit ) , for a period of 3 years

Starting stipend = Min of Semi-Skilled wages ( currently , approx Rs 6,000 pm )

Annual Increment = 5 %

Establishment to pay 75 % of stipend

Government to pay 25 % of stipend ( DBT into Jan Dhan account of the Apprentice )

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

HOW CAN WE ENSURE A " LEAKAGE PROOF " DISBURSEMENTS OF DBT AMOUNTS ?


*    Through implementation of Mobile based Attendance System , outlined in my blog,

   " From BAD to MAD "  [  01  Jan  2016  ]




HOW WILL MY SUGGESTION HELP ?


*  It will solve the problem of poverty organically / permanently

*  It will prevent " Dependency Culture " ( looking up to Sarkar Maa Baap for
   everything )

*  It will enable poor to retain their " Self Respect / Dignity "

*  The money spent by government will create highly productive " Human Assets "

*  It will overcome the " Skills Shortages " experienced by the Economy

*  It will create gainful " Self Employment " for millions of poor

*  It will make India , a " Low Cost Economy " , able to export its goods and services

*  It will channelize Black Money into a " Nation Building " exercise


20  Dec  2017


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