REVAMPING OF GOLD MONETIZATION SCHEME

WAY  TO  A  WIFE's  HEART  ?

Hindustan Times ( 29 March 2016 ) reports :

: There was a recent meeting between Economic Affairs Secretary, Shaktikant Das and representatives from the Reserve Bank of India, temple trusts and other bodies to discuss ways to make the Gold Monetization Scheme , more attractive  :

#  What are the Advantages  of this Scheme to the Economy ?

*  Reduce demand for gold in physical form to reduce our Import Bill

   Imports of some 1000 tons of gold accounts for nearly 25 % of our Import Bill

*  Bringing out approx 20,000 tons of idle ( locked up ) gold lying with households , into

   the banking system ( approx Rs 57,00,00 Crores worth )

*  Banks will be allowed to sell , gold deposited with them , to jewelers , thereby reducing 

   imports

#  Advantages to gold depositors :

*  Benefit from price increase at the time of maturity

*  Earn interest on the value of deposited gold

#  Negative Point :

*  Gold depositors have to make full disclosures on the source of gold !

#  Public Reaction :

*  In the past ONE year, only 3 tons of gold ( jewellery ) got deposited

#  Why ?  :

*  One official reportedly said at the meeting :

" I am not even able to convince my wife to part with her jewellery, which she hardly uses

The main stumbling block was the emotional value attached to the jewellery , which had often been passed on by generations "

#  Is there a way out ?

YES - as follows :

*  Calculate current value of gold being deposited ( say , Rs 50 lakhs )

*  After 10 years , return to depositor , Rs 50 lakh + simple interest at 10 %

    ( to take care of price increase - but no guess work )

*  Also credit Rs 50 lakhs to depositor's Income Tax account as " Advance Tax " paid

*  From depositor's Annual Tax Return , keep offsetting  this amount over 10 years,

    thereby reducing his tax liability ( Rs 5 lakh per year , in this case )

    Now, if the depositor is in 20 % tax rate slab, this would mean saving of Rs 1 lakh/year  !

*  Most Important : No need to disclose " Source of Gold " being deposited . No

    questions  !

Now , with this modification , the concerned official can convince his wife by telling her :

"  Go ahead and buy every year , new - and latest trend - jewellry equivalent to the tax amount that the Scheme has saved for me

And , buy dresses and purses to match that jewellery when we go on holidays abroad "

With this , I believe , at least 1,000 tons of gold can be garnered in next 12 months

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www.hemenparekh.in / blogs

29  March  2016

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Monday, March 28, 2016 10:32 AM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'; 'secy-ipp@nic.in'; 'mcitoffice@gov.in'; 'ravis@sansad.nic.in'; 'sureshprabhu@irctc.co.in'; 'prakash.j@sansad.nic.in'; Business Leader
Subject: PIYUSH PLAN ?

PIYUSH   PLAN  ?

After second world war , European economy was in shambles / devastated

It was revived through America's generous help in the form of Marshal Plan

A couple of days back, Shri Piyush Goyal announced intention to replace India's current petrol / diesel vehicles with Electric vehicles , by 2030

Now , consider this :

*   India boasts of 200 million vehicles today

*   We add some 10 million new vehicles each year

*   Today , global electric vehicles number only 6.65 lakhs

*   World may reach 30 million electric vehicles by 2030

In light of this , is " PIYUSH  PLAN  " feasible  ?

Let us take up the associated issues , one by one , and explore possible solutions

#   TIME  FRAME  for  CHANGE-OVER

Replacing 13.3 million vehicles per year ( starting TO-DAY ! ) to fully change-over 200 million vehicles in 15 years , is NOT possible

Remember , some 10 million vehicles get added each year for replacement / new demand

Way Out :

*  Existing vehicle manufacturers to COMMENCE production of electric vehicles by 2020 , giving them 5 years lead time to tool up

*  Manufacturers to start TAPERING OFF production of petrol / diesel vehicles from 2020 at the rate of 10 % per year. In 10 years ( by 2030 ) , they must stop all old vehicle production

*  Simultaneously , manufacturers to step up electric vehicle production by 10 % per year , so as to achieve 100 % electric vehicle production by 2030

*  This time frame will also apply to auto components / ancillary manufacturers ( Batteries etc )

*  Complete elimination of petrol / diesel vehicles from the roads to be targeted by 2050

#   DISPOSAL  OF  EXISTING  VEHICLES ( 200 million + produced till 2030 )

*  Enable / encourage MSME units to carry out " Retro Fitting " of existing vehicles

*  Vehicles older than 15 years to be taken off the roads . Encourage MSME to salvage whatever they can from such vehicles ( eg : Steel )

*  Provide special incentives to export such " Pre-Used / Reconditioned " to less developed countries

#   CHARGING  STATIONS

*    Existing petrol / diesel filling stations will need to be converted to Electric Charging Stations

*   These Charging Stations , themselves , must NOT draw electric power from State / National Power Grids - power which comes from Power Stations using FOSSIL FUEL  !

That would only transfer the pollution creation from vehicle engines to fossil-fueled power stations !

My Suggestion :

Use bicycle powered electricity generating device , innovated by Manoj Bhargava ( BillionsinChange )

This pedal operated device generates / stores , with just ONE HOUR of pedaling, enough power to light up 12 lamps of 100 W each for 24 hours , and costs around Rs 10,000/-

Some 25 of such devices are right now under installation in north India

Its construction is so simple that any MSME in smallest town can fabricate it easily , making it possible to get 10 million of these devices manufactured within a year

I am sure , Manoj Bhargava would be more than happy to release its manufacturing drawings on his web site for anyone to register and then download for FREE !

Do we foresee 50 / 60 million unemployed youth to become self-employed by setting up their own mini Charging Stations , on every street corner of every town in India ?

No dependence on Fossil or Solar , yet pure GREEN power around the clock !

Who knows , some owners of electric cars may even install one in their garage to serve dual purpose ( improve health + charge the car ). No doubt , a higher capacity version !

And , may be all GYMS around the country will install one !

Some 32 years ago , India witnessed a Telecom Revolution , riding on the wheels of a million roadside PCOs and a million Cyber Cafes

Piyushji :

Enabling launch of a million street-corner Charging Stations has got to be your

TRYST  WITH  DESTINY 

#   FINANCING

Shri Goyal said :

" We don't need one rupee support from the government

 We don't need one rupee investment from the people of India "

But Vehicle Manufacturers say :

"  We cannot give away electric cars for FREE ! We need money to run our operations and in advance . At the most , we can consider some sort of " Hire Purchase " scheme , if we can get funds at an interest rate of 5 % and are allowed to charge the buyers , 10 % "

And Banks say :

" We have already advanced car-loans totaling thousands of crores . If we are allowed to transfer the unpaid balances along with the fresh loan amounts , to a " Restructured Loan " bearing a higher interest rate ( and EMI ) , then we can consider "

Government says :

" We don't have funds to build more roads . So, where is the question of financing private purchase / usage of cars ? We would rather build more / better ( concrete ) roads "

Individual says :

"  I can hardly make ends meet ! If I must borrow from anyone , I would rather buy a roof over my head . I am already paying huge EMIs for my current car "

I say :

*  No questions asked for any CASH deposited into a person's Jan Dhan Bank account

  

*  Create a SPV called , EVFF ( Electric Vehicle Finance Fund )

*  Public can invest in this fund but only from their Jan Dhan Bank Accounts deposits

*  Interest earned from EVFF to be totally free from personal Income Tax for 10 years

*  EVFF will finance Car Loan companies or " Hire Purchase Schemes " of car manufacturers

*  Car finance companies will be asked to stop financing of petrol / diesel cars and finance

    only electric vehicles

If this is implemented , within 6 months , EVFF will be able to create a Corpus of Rs 10 lakh*crores !

Can you think of a better way of harnessing  BLACK  money to finance a  GREEN  future ?

#  INCENTIVE  FOR  CAR  MANUFACTURERS  AND  CAR  OWNERS

Shri Goyal says :

" We are trying to make this program self financing by monetizing the savings people have from using cheaper electricity to run cars

We are trying to work out whether we can give the cars for free initially and people can pay back out of the savings from not using petroleum products "

Figuring out which electric car owner saved how much money by not using petrol / diesel vehicle is a very messy issue , to say the least !

People use , from a 5 HP scooter to a 200 HP gas-guzzler car

Some use it for 500 KM per month , whereas others use for 10,000 KM per month

They may use it for self / family or for commercial purpose ( Rickshaw / Taxi / Bus / Truck )

They may use diesel or petrol ( even mixed with kerosene in case of rickshaws )

For 200 million existing vehicles , there could well be , 200 million different / unique ,

*  Current amounts ( liters ) monthly fuel usage

*  Purchased at differing prices per litter ( depending upon city )

*  Amounts paid to Charging Stations ( bound to vary , even within a city )

*  All of these leading to different amount of monthly savings

*  All the while neglecting the monthly EMI costs incurred !

I am afraid any attempt to compute " Individual Savings " is bound to raise controversies and litigation of unimaginable scale !

And let us not forget that , when vehicle manufacturers switch-over to production of electric vehicles , it won't be just ONE / STANDARD model of same horsepower

There will be hundreds of models of electric  vehicles of different designs / capacities / specifications and consuming different amounts of electric power  !

My suggestion :

Forget about ,

*   Computing of " Individual Savings "

*   Giving electric cars " free initially "

*   Owners " paying back from savings "

Based on car specifications / assumed average monthly usage  etc , figure out and fix

*  " Carbon Credits " for each model of electric car manufactured

*   Based on Carbon Credits earned , calculate Direct Transfer of Benefit ( DTB ) to electric

     car manufacturers based on monthly dispatches of each model

and then transfer these amounts from EVFF , as incentives to manufacturers

As far as incentives to electric car owners is concerned , make tax-exempt , all interest paid by owners for car loans taken , without any ceiling

#   GENERAL / GLOBAL  INCENTIVES

This game-changing initiative has at its root ,

"  SAVE  THE  WORLD  FROM  POLLUTION  "

This would require " Pulling out all stops " , in the form of unprecedented " Incentives " to :

*   Individual Electric Vehicle Owners

*   Electric Vehicle Manufacturers ( and " Disincentives " to petrol/diesel manufacturers )

*   Manufacturers of Charging Station Equipment ( Bicycle based Devices , for sure )

*   Charging Station Operators

*   Old Vehicle Retrofitting  Units ( MSME )

*   Old Vehicle recycling Units ( MSME )

*   Old Vehicle Exporting Units

*   Roadside Vehicle Repairers

*   Vehicle Purchase Finance Companies ( Car loans / Hire Purchase )

*   Electric Vehicle Leasing Companies

*   Auto Ancillaries of Electric Vehicles

*   Distributors / Dealers / Stockists of Electric Vehicles

*   Transport Companies using Electric Vehicles ( transporting people or goods )....etc

ALL of these ( and those that I missed out ), must be EXEMPTED from :

*   Indirect Taxes ( Excise / Octroi / Import Duty / Sales Tax / GST / Road Taxes etc )

*   Direct Taxes ( Personal and Corporate Income Tax / LTCG )

They must also be freed from rigid licensing / registration / incorporation requirements

Dear Piyushji :

Newspaper reports quoted you :

" We are thinking of leading the World rather than following the World

  India will be the first country to think of that scale "

There is no doubt you can lead the World , if you do not allow yourself to get paralyzed with the fear of failure !

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

www.hemenparekh.in / blogs

28  March  2016

  

Warm Regards,

Hemen Parekh

(M)=91 – 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Saturday, March 26, 2016 11:41 AM
To: Hemen Parekh; 'shaktikanta.das@nic.in'; 'narendramodi1234@gmail.com'
Cc: 'Hasmukh Adhia'; 'ajaitley@del5.vsnl.net.in'; 'jayant.sinha19@sansad.nic.in'; 'piyush.goyal@gov.in'; 'nitin.gadkari@nic.in'; 'spprabhu1@rediffmail.com'; 'kalraj@kalrajmishra.com'; 'bandaru@sansad.nic.in'; 'amitabh.kant@nic.in'; 'smritizirani@nic.in'; 'nsitharaman@nic.in'; 'nandan@nandannilekani.in'; 'viral@juliacomputing.com'; Editors; L T Story; Loksabha1; Loksabha2; Rajyasabha; TV Anchors; 'ceo-niti@gov.in'; 'secy-ipp@nic.in'; 'mcitoffice@gov.in'; 'ravis@sansad.nic.in'; 'sureshprabhu@irctc.co.in'; 'prakash.j@sansad.nic.in'; Business Leader
Subject: ORACLE HAS SPOKEN

Oracle  has  spoken

 

WHO   IS  THE   ORACLE ?

Sanjay Sarma ,

has a bachelor's degree from IIT Kanpur , his master's from Carnegie Mellon University and his PhD from the University of California , Berkeley

He has authored more than 75 academic papers in Computational Geometry, Sensing, Radio Frequency Identification ( RFID ), Automation and Computer Aided Design

He also serves on the boards of GS1 , EPCglobal , several start ups and edX , the not-for-profit set up by MIT and Harvard

WHAT  HAS  HE  SPOKEN  ?

He sent me following email on 25 March 2016 , after reading my suggestion below :

Dear Mr. Parekh,

Yes, placing tags on money has certainly been considered in the past.

I think it is a matter of time before it happens.

I do agree with your idea. 

Having said that, as more and more transactions become digital (credit cards, bitcoin, Adhaar card, etc.) the need for tracking cash goes down — ironically as our ability to track it increases.

-Sanjay

 Sanjay Sarma , 35-206 MIT. 617 253 1925 (T). 617 253 7549 (F).

 Email : 'SESARMA@MIT.EDU'

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

WHAT  DID  I  SUGGEST  ? 

NETWORK OF CURRENCY NOTES ?

( A Mobile App called, " BLACK-MAIL " )

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

While inaugurating the International Conference on " Networking the Networks " on Nov 2 , our FM Shri Jaitleyji said :

" Tax evasion and money laundering will become extremely difficult in the next 1-2 years, with the global automatic exchange of information system coming into effect on a real time basis "

To speed up this process and make it truly automatic / real time , I suggest resorting to the following technologies :

#   Internet of Things ( IoT )

     As each currency note of Rs 500 / 1000 , is getting printed , embed it with microscopic RFID sensors

     Besides communicating with each other , these sensors will also transmit their existence location , through internet , to cloud-based servers of Income Tax Department

 

     This will form a " NETWORK  OF  CURRENCY  NOTES ( NoC ) "

     You may like to call this Internet of Currency ( IoC ) , a sub-set of IoT  !

#   Internet Protocol Address System ( IP V 6.0 )

     Each Rs 500 / 1000 currency note must be assigned ( at the time of printing ) , its own unique Internet Address , using IP V 6.0

      This IP address should be linked with the unique Serial Number printed on each note.

     Since IP V 6.0 , will be capable of assigning   " 2 * 10 to the power of 128 ", no of  IP addresses , there is no danger of running out of addresses , even if we decide to extend this idea to Rs 100 currency notes !

Here are the most important BYE - PRODUCTs :

*   No more possibility of fake / forged / counterfeit , currency notes !

*   Plastic currency notes will last 10 times longer !

    

This reform will enable the Central Government / Income Tax Department , to :

*    Continuously trace the movement of each of these higher denomination currency notes

*    Instantly locate any place ( using Google Map based GPS ) , where there is an accumulation of more than Rs 1 Crore worth of currency notes

     Such accumulation will be made to appear as a TAG CLOUD on the web site of IT Dept, like thousands of balloons floating on a map of India , capable of being drilled down to within 1 Sq Meter  !

     On each balloon , will appear a number announcing , " Amount of Cash here - Rs " !

     This will vastly simplify the task of Anti Corruption Dept / Enforcement Dept etc

Of course , RBI will need to allow 6 month's time to the owners of current paper currency notes of Rs 500 / 1000 , to get these exchanged with new plastic notes before withdrawal of the old notes from circulation

Now , would not that distribute the hidden , unaccounted wealth ! - a welcome fall out  !

But then such transparency might lead to break-down of social order / chaos

It may be a better / safer / saner solution for such balloons / tag clouds to appear , on a secret Mobile App , available only to the officers of Enforcement Department ( ED )

You may want to call this app ,  " BLACK-MAIL "  !

Of course , my suggestions may become outdated with the arrival of mobile wallets based CASHLESS SOCIETY , by 2030

In the meantime , should Shri Arun Jaitleyji and Shri Ravi Shankar Prasadji , want this implemented , it can be done in 6 months , at one tenth the cost of MoM ( Mars Orbital Mission ) , ie approx Rs 43 Crores

All they have to do , is to tell the bureaucracy :

"  Since we need not depend upon Opposition parties to pass a bill in Rajya Sabha , please go ahead and implement this - in less than 6 months "

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www.hemenparekh.in / blogs

26  March  2016

Warm Regards,

Hemen Parekh

Mumbai

(M)=91 – 98,67,55,08,08 / hcp@RecruitGuru.com