SAiyar@cato.org
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
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
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
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
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 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.
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.
No comments:
Post a Comment