Energy Security:An Indian dream

India is the fifth largest producer of electricity with an installed capacity of 1,65,000 mw. When it comes to per capita consumption of electricity we are ranked amongst the poorest nations of this globe with an annual consumption of about 600 kwh which is a meagre 10% of the per capita consumption of the developed world. If  we really want to raise the living standard of our poor millions we have to increase our power generation ten folds in a reasonable time span of 20-25 years. This can only be achieved if we put this in a national mission mode with an unbiased earnest approach both by our planners and technocrats.

An earnest national approach is all the more important in the light of recent earthquake and tsunami disasters in Japan. The nature, intensity, fury and location of natural disasters cannot be predicted or fathomed by present day science and technology. However, as well meaning citizens it is our duty to ensure that natural disasters do not lead to man made secondary disasters.If some nuclear expert compares the probability of a nuclear accident or calamity with the probability of an accident while walking or driving on a road or travelling by a train, he is being untrue to not only the nation but his profession also, for an isolated accident and a catastrophe are entirely different things. while all efforts should be made to reduce the accidents on road a catastrophe should be avoided at all costs.

In the light of all this the energy security should be thought of in the face of following facts. We should primarily concentrate on all Renewable Sources of Energy.

• The Hydro Electric potential of India is estimated to be 1,48,000 mw out of which only about 32000 mw has been harnessed so far. This is a clean and renewable source.
• The Wind Power potential of our country is about 1,00,000 mw and so far only about 10000 mw has been utilised.
• The Solar Power potential of about 35000 sq km of Thar desert alone is estimated  to be a huge 7,00,000 mw. Country's total potential of this source is absolutely mind boggling even if we exploit only those areas which have already been utilised for road and rail corridors, canal network etc which run into lakhs of kilometres can offer thousands of sq kms for use. Additionally a 10 km radius ring road around even medium size cities can offer about 4-5 sq kms of area sufficient to generate about 80 mw.
• We are producing about 1,10,000 mw of Thermal Power wherein we are moving tonnes and tonnes of coal by rail incurring huge cost on logistics and straining our limited transport means simply because we do not have a national power grid in place.
  

Additionally the following thought process should also get the topmost priority from the government to give a meaningful direction to our policies on energy security.

• National power grid as a first priority.
• We are losing about 30% of our generated power through theft and transmission losses which can be brought down to about 10% through better engineering and good governance.
• All major buildings should incorporate energy efficient architecture and design.
• Save our fossil fuel and carbon resources for metallurgical purposes and futuristic requirements of synthesis of organic compounds which have become such a major requirement of our daily lives.
• The use of Nuclear Energy should almost be the last resort and kept at a level warranted by our military requirements.
• The exorbitant cost of producing electricity, presently Rs10-11 per unit for wind power and Rs 18-20 per unit for solar power could well be reduced significantly if scales of production matching to our requirements are kept in mind

Indian Dream:Our Chance To Become World Leaders

For long India has been the country of people who have been denied and deprived of prosperity and modern day comforts of life. When we take into account any of the prosperity indices like per capita earnings, per capita consumption of steel, electricity, cement, milk, cloth or for that matter any other parameter, we are no where near even to post world war II figures of advanced nations. This huge gap and magnitude of increase that is required to fulfill the dreams of one billion people is a God sent opportunity to make this country technology leader in many fields. Let us not waste this opportunity by bringing in prosperity through a route which has evolved in this world because of the then limitations in the field of science and technology and material development.

Electricity generation and connected technologies should be topmost priority as its consumption index is the mother of all other economic development indices and we have to increase its production manifold to catch up with the western world. Surprisingly our politicians and technologists both have chosen a path where we will all the time be following the developed nations and be dependent on them. It is not that developed nations do not understand that ultimate answer lies in the Renewable Sources of Energy. These nations themselves will also ultimately  switch over to these sources when their present power plants and plant manufacturing technologies become obsolete and they have squeezed full value by selling them to nations like India. Till such time the use of renewable energy will be kept at exorbitant price. It is for us to seize this opportunity and make power from these sources at prices comparable with power from present day conventional sources through research, technology innovation and scale of production. We should not forget that even with our meagre per capita consumption of electricity we are fifth largest producer in world. Therefore our targeted yearly additions in power production are far more than the yearly obsolescence of American Plants. Since they have all the technologies for setting up of conventional and nuclear power plants available in house they will not be interested in large scale spending on researches in the fields of utilizing renewable energy sources at present.

The present world leaders in science and technology are at that position not because of sheer coincidence or stroke of luck but because of long term vision and thinking on the part of their leaders and technocrats.If only Indian counterparts are true and earnest in their approach to fulfilling the aspirations of masses in the field of power generation we will become world leaders in harnessing renewable sources of energy in a decade or so.

Corruption and Black Money - Control Through Good Governance

The Finance Minister and the Indian Government is all the time boasting of a GDP growth rate of about 8.5% per annum and a promise to maintain the same for coming few years. Can they in the same breath talk of any one  particular value addition in this process excepting one fact that they have not frittered away the national resources in doling out concessions in the name of Aam Admi in form of subsidies, freebies etc. etc.. The golden opportunity that the compulsions of high wages in advanced nations has given to India with its cheap and qualified work force with the right demographic profile as also the limited privatisation in the early nineties is certainly not being properly utilised. Imagine if the opportunity is backed by good governance as was done by Japan and Singapore, where we will be after a decade or so. Needless to emphasize that presently we are being plagued by real bad governance.

A few suggestions from an Aam Admi which can catapult the GDP growth and fate of  have nots of this country in a manner much beyond our imagination.

• Declare a war on Corruption & Black Money. ( All Political Parties and MP's should not have any objection to this for it cannot come in the way of their political and economic agenda )
• Make necessary arrangements to get back all black money stashed in foreign countries.
• Do away with Quotas and Discretions of all political appointees and officials.
• UID project should be given topmost priority so as to completed in two year time. ( Make available all resources and money ) Its role in achieving better tax compliance, controlling subsidy leakages and midday meal program leakages cannot be undermined as it can certainly reduce them by 25%. But what about the balance 75% and we can make an even bigger dent in such dubious earnings if only we make it a point to link UID number to all immovable property and all major asset classes as also luxury items like cars, motor cycles, refrigerators, tv's, watches etc..
• Government should acquire powers to buy minimum 2% of property and land deals in secondary market every year at 1.1 times the declared value (chosen by a random number generation technique).
• Power of attorney in respect of immovable property should be done away with.
• All reinforcement directorates to be beefed up many folds.
• Three tier checks on economic status of general public individuals, government officials, politicians, business and corporates.
• Reinforcement of judiciary to take care of economic offences and disputes to a level so that no case hangs in the courts for more than nine months.
• And lastly all rags to riches stories and exponentially growing businesses should be reviewed for ascertaining their tax compliance.

Corruption and Black Money -The Big Guzzlers & Creators

You open any newspaper, you switch on any TV news channel, a day cannot pass without a few headlines about corruption and bribery scams. Such scams will invariably be connected with land, housing and real estate. In fact all activity related to this one particular sector be it allotment, sale and purchase, construction, purchase of material or renting and hiring brings in corruption, black money generation and deployment, tax avoidance and criminal activity. This sector and its progress are said to be the index of economic health of a nation. Imagine the extent of degradation of economic health of a nation when the same sector is under the cloud of corruption and bribery scandals one after the other particularly when only a negligible percentage of such cases catch the eye of media. In fact for every case that comes to limelight thousands of cases go undetected.

Buying and selling of property normally involves 30% of payments through banks and the rest is by cash. It gives huge opportunity of absorbing ill gotten money ( be it from bribery, corruption, tax avoidance or any other illegal activity) to the buyer and simultaneously produces the same amount of black money in the hands of seller.

In the construction business also cheque payments and receipts are kept to a bare minimum. Material purchases worth 10 lakhs are normally made against a bill of may be1.5 to 2.00 lakhs. This is true about all materials starting from bricks, timber, plumbing and hardware accessories, electrical fittings etc. to name only a few. The advantage to buyer and seller both can be understood by anybody for it does not require expertise in rocket science. Similar are the facts when it comes to hiring or renting of property.

Gold is the next big culprit when it comes to absorbing of black money and its creation for gold buying and selling is also mainly in cash. As a general rule all asset classes are equal culprits in this game of black money generation and absorption.

Corruption, Black Money and Our War

Today was the big day of Indian Union budget presentation for the year 2011-12. Because of recent commotion in the country about corruption and black money created by the efforts of media and political circles some action on the part of government was expected in this budget. Though the finance minister did mention about corruption and black money menace, no concrete steps or proposals to fight it were talked of. Though the fight to get back black money stacked in foreign banks is riddled with many international laws and complications, it is heartening to note that the government has taken up this aspect with several countries. Similarly government has reiterated on many occasions that all those found guilty of corruption will not be spared.So far so good. But why is action being confined only to cases which have come to light through the efforts of opposition and media. Everybody in the country is aware of the massive scale of corruption and bribery and is it not the duty of those in power to put an end to the menace. 

Let us as a nation on the march resolve to cut the very roots of this evil. The job may appear to be colossus in the first instance but we can in reality fight it by declaring a war on it with the cooperation of one and all in the parliament and bureaucracy. The efforts through better tax compliance and rationalisation are a good step forward in good governance. But why the direct action approach to nab such offenders is not being given top most priority. After all this also is an integral  part of good governance. Direct tax code and Goods and services tax measures are riddled with lot of difficulties and require consensus amongst all parties and state governments because of their ideologies and state's financial concerns. Understandably every political party is entitled to have its own policies and ideological differences are bound to be there.But what about CORRUPTION AND BLACK MONEY. For all right minded citizens of this country, this should be the first platform of good governance. There can be no difference of opinion on ways and means to fight it because it can neither clash with the political or economic ideology of any party nor with the interests of any state government. Let all the elected members of this country sit together to formulate procedures to combat corruption, bribery and black money and enact relevant legislation to have a system to keep a check on economic offenders. Such a system should cater for major extra reinforcements to the enforcement staff. A three tier system may be worthwhile to think of with one tier keeping a watch on the other. Similarly large additions to the relevant judiciary be also made so that no such case lingers for more than nine months.

Corruption, Black Money and Government Efforts

The extensive coverage on corruption, black money and various scams has forced the Indian Government and politicians to at least talk about it. About 70 lakh crores in foreign banks and about 10 - 15 lakh crores being generated fresh every year in a country whose GDP is of the order of 70 lakh crores is simply mind boggling to the suffering millions of this country and what can be achieved if it is tackled effectively is equally mind rattling.

Does it mean something to government of the country or for that matter to any politician of the country? After all these figures have not grown to this magnitude overnight but are a result of sheer complacence on the part of government after government during the last 50 years or so.If these people in politics and in power were really serious about this matter they would not only be thinking in terms individual scams. For howsoever big these scams or corruption cases may be, their sum total will be a small fraction of total annual generation of black money through corruption. But those in power and those waiting to be in power keep their activity limited to maligning each other and scoring brownie points only, for they are wise enough not to do something on the real issue of large scale corruption involving and affecting millions of people of this country that can jeopardise their own interests. None of these persons can talk in terms of moral ethics for they subscribe totally to professional ethics as moral ethics have little value for them. What else we can expect from them as a large chunk of them is from legal profession where for the sake of professional ethics moral ethics have to take a back seat. They are trained to do their best to find loopholes both legal and circumstantial which can win the case for their client irrespective of the real facts of the case.

Corruption and Black Money Centres

In the country where corruption is in all spheres of life and all sectors of economic activity, certain areas account for more than 90 % of money generated through corruption which finds its way into black money and its further multiplication.Corrupt practices include bribe giving and receiving, tax avoidance and black money generation. These areas belong to multitude of government departments, professionals and business activities in small and large enterprise. Therefore stringent controls and checks on government machinery and the business activities mentioned in the following paragraphs can result in eradication of the menace of corruption and black money to a large extent.

All corruption and black money emanates from the deeds and actions of politicians and government officials. The  bribery money in these hands is at the most 10% of the total black money generated whereas 90% goes into the businesses involved.This bribery is a very major contributor to the business world black money, and it contributes equally to the further snow balling effect it produces on black money generation. The loss to exchequer resulting because of bribery is of the order of 20% of the annual black money generated. This roughly amounts to about 2 Lakh crores annually.
The main beneficiaries of corruption amongst the government machinery are:

• Licencing and allotment authorities
• Public works department including M.E.S
• Excise and Taxation authorities
• Income Tax authorities
• Police authorities
• Land and property registration authorities

Amongst the general public the main beneficiaries of corruption are:

• Self employed persons like advocates, doctors, architects and engineering consultants etc.
• Shopkeepers whether petty, small, medium or big dealing in retail business of provision and general stores, cloth and ready made garments, construction and house building materials, hardware including plumbing and bathroom accessories, electrical cables, fittings and accessories, as also timber, plywood,glass etc..
• Tutors and teachers indulging in private tuition
• Property dealers and real estate agents

Amongst the businesses most involved in corrupt practices are:

• Real estate and construction business is perhaps the biggest absorber and creator of corruption and black money. 
• Gold and Jewellery  business
• Businesses related to manufacture of wafers, namkeens, confectionery items, gachhak & chikki and other eating accompaniments.
• Businesses of small and big eateries, Dhabas, Restaurants, Indian sweet shops (Halwais)
• Education Business
• The whole of small scale manufacturing sector which neither accounts for the earnings of the manufacturer nor the retailer.

The real estate, construction, gold & jewelery businesses need a special mention as majority of black money gets absorbed in these sectors and they are the biggest motivators for falling into the trap of corruption.