Corruption and Black Money:The Ultimate Solution

Various scams like CWG scam, 2 G scam, Adarsh Housing Society scam and the cases of huge wealth accumulation by Hasan Ali, Shahid Balwa and many others are just the tip of the iceberg of this menace.After engaging all the enforcement, vigilance, investigation and judicial authorities of the country we are still not sure as to what will be the outcome of this. These are just a few isolated cases of something which is rampant in the country and out of which only these few have come to light somehow. In fact the the scale and magnitude at which corruption and black money generation is going on in this country may be tens of thousand times the combined scale of these scams.

The colossus effort involved in unearthing corruption and black money and the time frame in which something can be done can be gauged by the number of agencies involved, number of persons to be interrogated and the amount of raids carried out in dealing with these few cases. For Commonwealth Games with a budget of few thousand crores, top bureaucracy, CPWD, DDA and other officials were interrogated and many times raids were also conducted on their premises. Imagine if similar problems of CPWD, DDA, and their counterparts in all states and other ministries like railways, defence, road transport and highways etc. are to be dealt with, where the construction and infra development budgets run into lakhs of crores of rupees. The quantum of corruption money and black money generated in this activity can be easily assessed through a small basic calculation. A meagre 5% extra derived from the rates, 5% from the measurements and another 10%  from relaxation of specifications and material quality and quantity used makes available a whopping sum of Rs 50000 crores as the loot being shared between contractor, political bosses, bureaucracy and technical personnel involved in various facets of  the activity. It will be worthwhile to add that these percentages are  almost impossible to detect and prove but are a routine in these activities. The only way they can be checked is through strict monitoring of assets of connected people. Similar loots are going on in excise and taxation, income tax, food subsidy, midday meal scheme. Imagine how difficult it is to keep a check on millions of people involved in this loot. Even if we increase our enforcement staff and judiciary tenfolds we may end up by reducing this menace by a small 5-10%. Therefore some innovative and sincere methodology should be thought of in fighting this demon.

The only viable solution seems to be through linking of all immovable and movable assets with UID number. These assets will include all commercial and residential property, all agricultural land, gold and jewellery, all vehicles ( commercial and private ), all luxury items, DMat accounts, investments in commodities, banks and mutual funds etc. etc.. Along with these linkages the following steps are also a must.

• Government should have the power to acquire about 5-10% of real estate deals in the secondary market by paying 10% premium to the declared value of the deal.
• Practice of power of attorney in respect of real estate should be abolished.

Once the investment avenues of ill gotten money are plugged, we can see a ray of hope in improving the living standards of Indian masses at a much faster rate.

Corruption and Black Money:Our Sensitivities and Priorities

A few days back when I wrote in my blog on' Corruption and Black Money-Control through good governance' that we should declare a war on corruption and black money, I thought that it was a fairly easy job for no political party will have any objection as it can in no way clash with their political, economic and social agenda. To day after hearing the debates going on in media over the much talked about Lok Pal Bill (a small but significant step in our war on corruption and black money) in the light of fast unto death by Gandhian Anna Hazare for bringing the same into effect by the present government, one gets an impression that any step towards fighting the menace of corruption and black money affects definitely affects the personal agenda of a vast majority of our politicians. So much so the fast unto death by Anna Hazare for a cause which is of prime importance to the country, to each and every individual of this country and to the hapless Aam Aadmi who believes that his lot will improve in the hands of these leaders was described as pressure tactics by the spokesperson of Congress party .I wonder what these guys think of the numerous fasts undertaken by the Father of the Nation for social and political issues?

Anyway the present day politician should not be ashamed of the fact that he could do nothing on this issue of prime importance to 1.2 billion people in whose service he is  dedicating his life. After all his predecessors from various governments and parties also tried on eight different occasions during the last forty two years and failed to achieve anything concrete on this front. Still they are great patriots who had dedicated their lives to the service of the nation.

None of the political parties or any individual leader can afford to deny that proper legislation is required to  end corruption and have an Anti Corruption Bill in place. If this is so why are we looking for some arguments or excuses for not doing the job in right earnest. If the government is serious and sincere it can formulate a draft in a few days with or without the inputs from civil society and if it does not respond in the right earnest the names of our esteemed leaders from all parties will be remembered with utter disdain. Is it too much to expect from Dr Manmohan Singh, Mrs Sonia Gandhi, Mr LK Advani, Mr Nitin Gadkari ,Mr Prakash Karat and all the esteemed leaders of regional parties that they  rise above petty politics and for once act as if they are part of a national government in formulating an effective anti corruption bill. This is a God sent opportunity for them to get their names in golden letters in the history of India.
The game going on in taking the first small step towards India's war on corruption is quite clear to anyone with a bit of intelligence. First keep on dillydallying over the formulation of a committee on one pretext or the other, then over the draft to be taken up for legislation and finally tell the nation that political consensus could not be arrived at.In short resort to the age old bureaucratic dictum " Look busy, sincere and forthcoming and do nothing". After all we have an intelligent bunch of people sitting at the top and cannot expect them to cut their own hands with their actions.

Energy Security:Renewable Energy Sources-The Right Perspective

Electricity from renewable sources i.e. hydel, wind and solar is certainly the best option for any country on this globe, particularly for India as it has availability of vast quantum of these resources. The basic advantage in the use of these resources can be summed up as:

• All three are eternal sources of energy
• Clean pollution free energy generation
• No consumable costs and saves scarce fossil fuel and carbon reserves
• Least environment effect on global warming
• Very low on logistics cost

The overall hydro, wind and solar power  potential available in  the country is of  the order of  8-10 lakh mw

( Considering only Thar desert area for solar power ). The same can grow considerably if we decide to make use of all our rail, road and canal corridors. India is actively considering Mega Manufacturing Hubs each of which will be spread over 2000 hectares covering an area of about 20 sq.kms. and a periphery of about 20 kms. Consider a 100 metre wide integrated rail / road corridor on this periphery which gives us an area of 2 sq. km carrying a solar power potential of 40 mw .

The hype created about nuclear energy as the only viable source to give India its energy security in future is a result of some vested interests and compulsions on the part of government and lack of professional integrity on the part of concerned technocrats. We are excellent scientists and technologists but when it comes to choosing between two or more available alternates we never have the courage and professional uprightness to go in for the best solution. In such matters petty personal gains and desire to further one's own empire and clout in the technical community take the front seat.

American and West European interest in selling nuclear power technology is quite understandable, for they will like to earn maximum from the technologies wherein billions of dollars have been spent and invested in research and infrastructure for commercial exploitation. They couldn't care less if these technologies are redundant today or better and safe alternates are available till such time they can force sell them to some one. We are planning to have about 20000 mw of nuclear power in the coming years. The costs involved are a mind boggling sum of Rs 2.4*10^12 i.e. 0.240 million crores as per 1995 prices. Through the same money, science, technology and relevant manufacturing facilities for wind and solar power generation will be developed and optimised and sold off to countries like us after 10-15 years. Incidentally setting up of a nuclear power plant involves a time period of more than 10 years.

The nuclear danger in Japan resulting out of earthquake and tsunami are a big wake up call  for everyone and let us respond in the same way as any well meaning citizen of a country will respond. Let us have Energy Security in a National Mission Mode. We have done wonders in the field of television penetration, mobile telephony, missile programme and Delhi Metro through such approach. We are working on UID project and let us have a similar approach to Energy Security problem also. These last two measures can in fact revolutionise the fate of our teeming millions in a decade

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.