Article: The Cost of India' affulence
While the global economy sputters to a tepid recovery, the growing menace of obesity in the developing world is barely noticed.In a recent estimate, out of 1.1 billion overweight adults worldwide, 312 million are obese. Together with underweight and the stunting of children, the paradox of the dual burden of households--in which the children are underweight and the adults are overweight--poses a major health challenge for millions of households.
In the last two decades, rates of obesity have tripled in the developing world. Even among children, the prevalence rates of overweight and obesity have risen.
The fundamental cause of overweight and obesity is an energy imbalance between calories consumed and calories expended.This imbalance is due to
(i) a global shift in diets towards a higher intake of energy-dense foods that are high in fat and sugars but low in vitamins, minerals and other micronutrients;
(ii) a reduction in physical activity due to the sedentary nature of work, better modes of transportation and urbanization.
The upsurge in the numbers of the overweight and obese portends higher risks of chronic non-communicable diseases (example, hypertension, diabetes, cardiovascular disease and cancer). The burden of chronic diseases has risen sharply in India, accounting for 53% of all deaths and 44% of disability-adjusted life years in 2005. Worse, many of these deaths occur at early ages.In fact, the number of potentially productive years lost due to deaths from cardiovascular disease in the age group of 35-64 (9.2 million years lost in 2000) is the highest in the world. By 2030, it is expected to touch 17.9 million years.
A recent household survey conducted jointly by the University of Maryland and the National Council of Applied Economic Research--India Human Development Survey allows an assessment of overweight and obesity, and their implications for chronic non-communicable diseases. We first provide a summary of the findings on the prevalence of overweight and obesity among the adults (older than 22 years).
About 9.5% of the adult males were overweight and about 2.5% were obese. The corresponding rates among adult females--12.65% and 3.18%, respectively--were higher. While overweight and obesity are largely an urban phenomenon-about 22% of the adults were overweight and about 7% were obese-these disorders are observed in urban slums and rural areas too.
Specifically, the proportion of overweight in urban slums (about 15%) was lower but not markedly so. In the rural areas, however, the proportion of overweight (above 9%) was a little less than half of that in the urban areas, and that of obese (about 2%) was just over onefourth of the figure in urban areas. Overweight and obesity are not confined to relatively affluent households. Although lower among the poor, their proportions are non-negligible. Our analysis shows that, among the non-poor, the proportions of overweight and obese were about 14% and just under 4%, respectively.
Among the poor, the shares were 7% and about 1.25%, respectively. Disaggregation of the overweight and the obese by caste and tribe further suggests that even socially and economically deprived sections are not immune to such disorders. Among the scheduled castes, the proportions of overweight and obese were about 9% and a little less than 2%, respectively; among the scheduled tribes, the proportions were slightly lower--about 6% and above 1%, respectively; among the other backwards castes, the corresponding estimates were above 12% and about 3%, respectively; and among the remaining, the estimates were the highest--above 17% and about 5%, respectively.
Finally, there was a sharp increase in the proportions of the overweight and obese over the period from 1998 to 2005. The proportion of the overweight more than tripled while that of the obese rose at least six times.
Turning to the risks of non-communicable diseases, there are significant variations by disease, age and gender. A few illustrations suffice. Among those suffering from high blood pressure, about 46% were either overweight or obese.Among females in the 23-45 age group, about 44% of those who were overweight and obese suffered from high blood pressure. In the older age group (those older than 45), the proportion was as high as 56%. Among males older than 45 years, about 57% of the overweight suffered from diabetes while among the females, the proportion was much lower, at 48%.
In conclusion, while concerns for poverty and hunger must dominate the policy agenda, the options for dealing with obesity and the upsurge in non-communicable diseases can only be neglected at the peril of millions of lives that may suffer their worst consequences.Although shifts in diet and physical activities are desirable in many ways--arguably varied and pleasurable--it will be a mistake to overlook the onerous nutritional health effects and the tragic but avoidable loss of well-being.
(Raghav Gaiha is a professor of public policy at the Faculty of Management Studies, University of Delhi; Raghbendra Jha is the Rajiv Gandhi chair professor of economics at the Australian National University; and Vani S. Kulkarni is a lecturer in South Asian studies at Yale University.)
Tuesday, October 13, 2009
PRIVATE SECTOR VIOLATED TERMS OF AGREEMENT- CHAMLING
- Chamling warns private sector
Gangtok, Oct 12 (PTI) Accusing the private sector with deliberately violating in a "brazen manner" their agreement with the Sikkim government to provide employment to locals in their units, Chief Minister Pawan Kumar Chamling today threatened to review the terms of agreement with the 'guilty' companies.
"The private companies have been violating in a brazen manner the terms of understanding/agreement with the state government to promote local employment to such an extent that local people employed in the industrial units have been harassed and victimized by the management", he said at an investor's meet here.
The local workers were discriminated by being paid less remuneration than their colleagues from outside while the private companies have gone back on their commitment to provide training for honing their skills for available jobs.
Monday, October 12, 2009
APPLE THIS SEASON COSTLIER
The total apple production this season IN HP will be around 18 million boxes of 25 kg each, considerably less than last year's 26 million crates, Horticulture Minister Narender Bragta said.
"Himachal Pradesh is one of India's major apple-producing regions, with more than 90 percent of the produce going to the domestic market.
The area under the apple crop has increased to 94,726 hectares in 2007-08 from 400 hectares in 1960-61.
The state's apple economy is pegged at around Rs.1,500 crore, with Shimla, Kullu, Mandi, Lahaul and Spiti, Kinnaur and Chamba districts being the hubs.
Sikkim once growing Apple has lost its orchards thanks to technological intervention of chemicals. It can be revived to augment North Sikkim's economy.
"Himachal Pradesh is one of India's major apple-producing regions, with more than 90 percent of the produce going to the domestic market.
The area under the apple crop has increased to 94,726 hectares in 2007-08 from 400 hectares in 1960-61.
The state's apple economy is pegged at around Rs.1,500 crore, with Shimla, Kullu, Mandi, Lahaul and Spiti, Kinnaur and Chamba districts being the hubs.
Sikkim once growing Apple has lost its orchards thanks to technological intervention of chemicals. It can be revived to augment North Sikkim's economy.
Omar: Indian political system recognises different identities
Srinagar 11.9.2009: The political system in India has recognised and allowed the celebration of different identities, symbols and marks, Jammu and Kashmir Chief Minister Omar Abdullah said here on Saturday.
“We have been able to weave the fabric of a composite Indian culture and society, and the national identity of the country reflects different shades and colours,” he said.
Addressing the 35th All-India Sociological Conference on ‘Identity, Development and Nation-Building’ at Kashmir University, Mr. Abdullah said the parliamentary democratic system of India had heightened the expectations of people with different social and cultural identities. “It equally provides the opportunities for their satisfaction,” he said.
“Identity and nation-building has been the perennial theme of post-colonial independent states of the world. During the colonial rule, right of assertion of identity along with other rights of the people were suppressed and subjugated. The efforts of the colonial masters were to confront the identities against each other instead of providing them the opportunities of maintaining a harmonious level. In most of the cases, the colonisers had little comprehension of the dynamics of identities,” Mr. Abdullah said. He added that in India’s post-Independence phase, identities were provided enough opportunities through democratic processes and institutions to assert and satisfy their urges.
The Chief Minister said nation-building was a concept which involved the process of constructing a national identity using different resources. “The objective of this process is the unity of the people to ensure political stability and national development.”
He said the developmental strategies and processes were crucial for forging national unity and achieving the objective of nation-building. “It is important to note that the assertion of identity should not hamper the process of development and nation-building. In some cases, over-assertion of identities leads to the violation of constitutional boundaries. This process ultimately results in confrontation and instabilities in societies.” (Agencies)
Srinagar 11.9.2009: The political system in India has recognised and allowed the celebration of different identities, symbols and marks, Jammu and Kashmir Chief Minister Omar Abdullah said here on Saturday.
“We have been able to weave the fabric of a composite Indian culture and society, and the national identity of the country reflects different shades and colours,” he said.
Addressing the 35th All-India Sociological Conference on ‘Identity, Development and Nation-Building’ at Kashmir University, Mr. Abdullah said the parliamentary democratic system of India had heightened the expectations of people with different social and cultural identities. “It equally provides the opportunities for their satisfaction,” he said.
“Identity and nation-building has been the perennial theme of post-colonial independent states of the world. During the colonial rule, right of assertion of identity along with other rights of the people were suppressed and subjugated. The efforts of the colonial masters were to confront the identities against each other instead of providing them the opportunities of maintaining a harmonious level. In most of the cases, the colonisers had little comprehension of the dynamics of identities,” Mr. Abdullah said. He added that in India’s post-Independence phase, identities were provided enough opportunities through democratic processes and institutions to assert and satisfy their urges.
The Chief Minister said nation-building was a concept which involved the process of constructing a national identity using different resources. “The objective of this process is the unity of the people to ensure political stability and national development.”
He said the developmental strategies and processes were crucial for forging national unity and achieving the objective of nation-building. “It is important to note that the assertion of identity should not hamper the process of development and nation-building. In some cases, over-assertion of identities leads to the violation of constitutional boundaries. This process ultimately results in confrontation and instabilities in societies.” (Agencies)
PRESIDENT ADDRESSES ON RTI
SPEECH BY HER EXCELLENCY THE PRESIDENT OF INDIA, SHRIMATI PRATIBHA DEVISINGH PATIL, AT THE INAUGURATION OF THE ANNUAL CONVENTION OF THE CENTRAL INFORMATION COMMISSION
New Delhi, 12th October, 2009
I am pleased to inaugurate the Annual Convention of the Central Information Commission. It was on this day in 2005 that the landmark legislation of the Right to Information Act came into effect giving to the people of India a powerful instrument for their empowerment.
In a democracy it is the people who are supreme. They elect their Government and it is for them to judge the performance of their elected representatives. While the casting of the vote enables them to take the important decision on what Government they want, for assessing deliverability, they need information about how their Government is functioning. The RTI gives to each individual citizen the means to question and to get answers. The significance of this becomes evident when we recall that before 2004, it was largely the Members of Parliament and Members of State Legislatures who could question the performance and functioning of Government authorities through proceedings in their respective Legislatures. The Act has, in a manner of speaking, now created a virtual "Parliament of the People", where every citizen, through a simple method, can seek information from public authorities; and expect a response in 30 days. This has been the biggest fundamental difference that has been brought about by the RTI enactment - providing relatively easy access to information. There is no doubt that the flow of information to the citizens will help them make enlightened judgments.
Interaction between the citizens and the public authorities is important in making democracy participatory and to move forward towards the common national goals of progress and prosperity. India seeks to build an inclusive society and is committed to an inclusive growth process. Government has made available substantial amount of funds for numerous social and economic schemes. A major challenge is to ensure the effectiveness of the delivery mechanisms, so that the impact of these schemes is felt by the beneficiaries. It is of utmost importance that these funds are spent in conformity with the cannons of efficiency and productivity, as well as their wastage and pileferage avoided. The "RTI Route" can be instrumental in bringing about improvements in the public service delivery systems and mechanisms.
Public authorities are progressively becoming pro-active to the spirit behind the Act and are responding favourably. The best practices adopted by various States in response to the RTI Act should be codified and practiced. Various public authorities have simplified their procedures and transformed their citizen interface into the e-governance mode and the Commission itself is one of them. I am also told that since the Act came into being a large number of Government websites invariably have the "Right to Information button" on them. It is important that technology is used for better management of records and data, this is turn would make information sharing easier.
Institutions are increasingly coming under greater scrutiny. Information is no longer the preserve of a few and there is greater emphasis on transparency of work and accountability. However, there are many occasions where the bureaucracy, evokes an image of red-tapism and certain opaqueness. It is my hope that as the Right to Information gets further embedded into our civil society, there will be even more urgency felt to take action to negate this perception, which at times may be wrong. Good governance and corruption free systems are what people are rightfully expecting, and they can use the Act to get it in full measure.
The Right to Information Act has the potential to make Government and the people work together for the benefit of both. The occasionally noticed tendency to view public authorities as adversaries should go. There is a fine balance which needs to be maintained between applications under the Right to Information to public authorities and also ensuring that public authorities are not flooded with applications some of them of frivolous nature, which could overwhelm their ability to respond in time. Therefore, there is a need for a sense of responsibility for more openness on the part of public authorities as also within civil society to ensure that applications which reach authorities are those that genuinely need immediate attention. It is here that the role of the Central Information Commission, as a regulator, balancer and educator, is critical.
Citizens exercising the right to information have substantially grown in numbers, complexion, and stature. There are many illustrative cases - physically handicapped persons getting their entitlement, women getting old age pension, students getting correct evaluation of exams, damaged roads being repaired. This speaks of the success of the RTI Act in creating conditions for free flow of information and thereby empowering the citizen. Applications that result in public benefits, in the timely implementation of schemes; that bring relief and welfare to people; help in citizens getting what is theirs rightfully, should receive the uppermost priority. Efforts must also be made to ensure that the RTI option is known and exercised in rural areas and by the disadvantaged sections of society.
Rights given under this Act to our citizens are extensive and, therefore, it is important that there be a deep sense of responsibility while exercising them. The civil society can play an important role in creating awareness about the importance and spirit of the Act, so that collectively the people and their elected Governments can build the future of the country responsibly and constructively.
In the end, I would like to reiterate the importance of following sound principles of good governance for the welfare of our citizens, who are at the centre of all government functioning. This will further strengthen our democratic traditions and credentials. I am confident that during the Convention, the review of the functioning of the RTI and discussions under the sub-themes will identify issues that need attention whether in terms of factors that impede the flow of information, co-ordination between State Commissions, strengthening of government infrastructure for RTI and building a responsible culture of RTI. I conclude with good wishes for the Convention.
Thank you.
Jai Hind.
New Delhi, 12th October, 2009
I am pleased to inaugurate the Annual Convention of the Central Information Commission. It was on this day in 2005 that the landmark legislation of the Right to Information Act came into effect giving to the people of India a powerful instrument for their empowerment.
In a democracy it is the people who are supreme. They elect their Government and it is for them to judge the performance of their elected representatives. While the casting of the vote enables them to take the important decision on what Government they want, for assessing deliverability, they need information about how their Government is functioning. The RTI gives to each individual citizen the means to question and to get answers. The significance of this becomes evident when we recall that before 2004, it was largely the Members of Parliament and Members of State Legislatures who could question the performance and functioning of Government authorities through proceedings in their respective Legislatures. The Act has, in a manner of speaking, now created a virtual "Parliament of the People", where every citizen, through a simple method, can seek information from public authorities; and expect a response in 30 days. This has been the biggest fundamental difference that has been brought about by the RTI enactment - providing relatively easy access to information. There is no doubt that the flow of information to the citizens will help them make enlightened judgments.
Interaction between the citizens and the public authorities is important in making democracy participatory and to move forward towards the common national goals of progress and prosperity. India seeks to build an inclusive society and is committed to an inclusive growth process. Government has made available substantial amount of funds for numerous social and economic schemes. A major challenge is to ensure the effectiveness of the delivery mechanisms, so that the impact of these schemes is felt by the beneficiaries. It is of utmost importance that these funds are spent in conformity with the cannons of efficiency and productivity, as well as their wastage and pileferage avoided. The "RTI Route" can be instrumental in bringing about improvements in the public service delivery systems and mechanisms.
Public authorities are progressively becoming pro-active to the spirit behind the Act and are responding favourably. The best practices adopted by various States in response to the RTI Act should be codified and practiced. Various public authorities have simplified their procedures and transformed their citizen interface into the e-governance mode and the Commission itself is one of them. I am also told that since the Act came into being a large number of Government websites invariably have the "Right to Information button" on them. It is important that technology is used for better management of records and data, this is turn would make information sharing easier.
Institutions are increasingly coming under greater scrutiny. Information is no longer the preserve of a few and there is greater emphasis on transparency of work and accountability. However, there are many occasions where the bureaucracy, evokes an image of red-tapism and certain opaqueness. It is my hope that as the Right to Information gets further embedded into our civil society, there will be even more urgency felt to take action to negate this perception, which at times may be wrong. Good governance and corruption free systems are what people are rightfully expecting, and they can use the Act to get it in full measure.
The Right to Information Act has the potential to make Government and the people work together for the benefit of both. The occasionally noticed tendency to view public authorities as adversaries should go. There is a fine balance which needs to be maintained between applications under the Right to Information to public authorities and also ensuring that public authorities are not flooded with applications some of them of frivolous nature, which could overwhelm their ability to respond in time. Therefore, there is a need for a sense of responsibility for more openness on the part of public authorities as also within civil society to ensure that applications which reach authorities are those that genuinely need immediate attention. It is here that the role of the Central Information Commission, as a regulator, balancer and educator, is critical.
Citizens exercising the right to information have substantially grown in numbers, complexion, and stature. There are many illustrative cases - physically handicapped persons getting their entitlement, women getting old age pension, students getting correct evaluation of exams, damaged roads being repaired. This speaks of the success of the RTI Act in creating conditions for free flow of information and thereby empowering the citizen. Applications that result in public benefits, in the timely implementation of schemes; that bring relief and welfare to people; help in citizens getting what is theirs rightfully, should receive the uppermost priority. Efforts must also be made to ensure that the RTI option is known and exercised in rural areas and by the disadvantaged sections of society.
Rights given under this Act to our citizens are extensive and, therefore, it is important that there be a deep sense of responsibility while exercising them. The civil society can play an important role in creating awareness about the importance and spirit of the Act, so that collectively the people and their elected Governments can build the future of the country responsibly and constructively.
In the end, I would like to reiterate the importance of following sound principles of good governance for the welfare of our citizens, who are at the centre of all government functioning. This will further strengthen our democratic traditions and credentials. I am confident that during the Convention, the review of the functioning of the RTI and discussions under the sub-themes will identify issues that need attention whether in terms of factors that impede the flow of information, co-ordination between State Commissions, strengthening of government infrastructure for RTI and building a responsible culture of RTI. I conclude with good wishes for the Convention.
Thank you.
Jai Hind.
Sikkim seeks to promote tourism potential in global market
Sikkim seeks to promote tourism potential in global market
11 Oct 2009
By Tashi Pradhan
Gangtok, Oct.11 - ANI: Defined as a mystical kaleidoscope of natures garden, Sikkim is increasingly fascinating tourists from different parts of the country and abroad.
According to the State tourism department, around 208,000 tourists visited Sikkim in the first five months of 2009, which was an increase of nearly 35 per cent over the previous year.
In a bid to attract tourists, Sikkim Government has declared the year 2010 as the Year of Tourism and has lined up as many as 13 festivals to develop the tourism industry.
The Sikkim Government is also undertaking various steps to draw maximum international tourists.
The State Govt. is presently trying to promote tourism with Thailand through the commonality that exists in their cultures and traditions as both encompass the Buddhist heritage.
At present not so many people in Thailand know about Sikkim. Mostly because its one of the remotest state in India, but Im sure once the infrastructure is in place for example the airport, roads, I think more people from Thailand will come to Sikkim, especially people who are interested in Buddhism because most of the Thais and Sikimese are Buddhist. We have a number of Buddhist tourists coming to India every year. I think Sikkim would be another destination for them, said Parinthorn Apinyanunt, First Secretary, Royal Thai Embassy.
Compared to last year this years tourists inflow is good, even the bookings are also good. They prefer to come here for summer vacation which is not so in the past years. Since 1992 Sikkim has come as a main focus. The main attraction are its natural beauty, green forest, falls, rivers, streams, mountains, peaks and people love to see such things, said Deepak Kumar Rai, a local tour operator in Sikkim
During 2007-08, the Central Government sanctioned an amount of rupees 5.8 crores for Sikkims tourism infrastructural projects.
In 2009, the Centre funded 12 projects as Centrally Sponsored Schemes from Ministry of Tourism with six projects for Border Area Development Programme (BADP).
The State government has also funded a tourism project.
We like to visit places and we find Sikkim a very beautiful place very need, clean and lovely, very scenic. You can almost compare it with one of the city in Europe. The greenery is wonderful, cleanliness is good, and people too are nice. The city park that I saw in MG road was simply breath-taking, said Dastoor, a tourist from Mumbai.
Widely known for the grandeur of mountain peaks, lush valleys, adventure sports and various lively festivals, the northeast State of the country has plenty to offer to its visitors. - ANI
11 Oct 2009
By Tashi Pradhan
Gangtok, Oct.11 - ANI: Defined as a mystical kaleidoscope of natures garden, Sikkim is increasingly fascinating tourists from different parts of the country and abroad.
According to the State tourism department, around 208,000 tourists visited Sikkim in the first five months of 2009, which was an increase of nearly 35 per cent over the previous year.
In a bid to attract tourists, Sikkim Government has declared the year 2010 as the Year of Tourism and has lined up as many as 13 festivals to develop the tourism industry.
The Sikkim Government is also undertaking various steps to draw maximum international tourists.
The State Govt. is presently trying to promote tourism with Thailand through the commonality that exists in their cultures and traditions as both encompass the Buddhist heritage.
At present not so many people in Thailand know about Sikkim. Mostly because its one of the remotest state in India, but Im sure once the infrastructure is in place for example the airport, roads, I think more people from Thailand will come to Sikkim, especially people who are interested in Buddhism because most of the Thais and Sikimese are Buddhist. We have a number of Buddhist tourists coming to India every year. I think Sikkim would be another destination for them, said Parinthorn Apinyanunt, First Secretary, Royal Thai Embassy.
Compared to last year this years tourists inflow is good, even the bookings are also good. They prefer to come here for summer vacation which is not so in the past years. Since 1992 Sikkim has come as a main focus. The main attraction are its natural beauty, green forest, falls, rivers, streams, mountains, peaks and people love to see such things, said Deepak Kumar Rai, a local tour operator in Sikkim
During 2007-08, the Central Government sanctioned an amount of rupees 5.8 crores for Sikkims tourism infrastructural projects.
In 2009, the Centre funded 12 projects as Centrally Sponsored Schemes from Ministry of Tourism with six projects for Border Area Development Programme (BADP).
The State government has also funded a tourism project.
We like to visit places and we find Sikkim a very beautiful place very need, clean and lovely, very scenic. You can almost compare it with one of the city in Europe. The greenery is wonderful, cleanliness is good, and people too are nice. The city park that I saw in MG road was simply breath-taking, said Dastoor, a tourist from Mumbai.
Widely known for the grandeur of mountain peaks, lush valleys, adventure sports and various lively festivals, the northeast State of the country has plenty to offer to its visitors. - ANI
THE MAN WHO RULES INDIA- IAS
Defending the indefensible is an uphill task.
Defending the indefensible when popular public perception views it as being indefensible is even harder to do. Philip Mason wrote his class many years ago by the name The Men Who Ruled India about the Indian Civil Service (ICS) and how it shaped India's destiny. Since then, much water has flowed under the proverbial bridge, and as an Indian Administrative Service (IAS) officer who has travelled, interacted and negotiated with civil services around the world, I can say with a lot of pride that IAS is, even today, despite a number of fundamental flaws, world class in several respects.
Sadly, India has one of the finest higher civil services in the world, sitting on top of one of the worst lower civil services, which accounts for many, but not all, of its flaws.
Let's start with the system of recruitment:
About 500,000 candidates write a year-long, multi-stage examination, competing for just 80 seats--half of which are reserved--in IAS, and is considered by many to be one of the most rigorous contests in the world. That's a success percentage of 0.02% versus about 250,000 candidates appearing for about 6,000 Indian Institutes of Technology seats each year, with a success rate of 2.96%. No other examination in the world has odds the national civil services examination of India has.
Yet, while the latter are, justifiably, celebrated, the former, often regarded as the "best among the brightest", are today the object of scorn and disgust, blamed for the various ills that plague the country. Still, quite a few officers from IAS are wooed at astronomical salaries by the private sector for their talent, relationships, education, and rich and diverse ground-level experience, which should give some idea of their market value.
People are quick to criticize IAS, but they forget that corporate titans such as the redoubtable Russi Mody, Yogi Deveshwar and many others failed even in autonomous entities such as Air India. Many have fallen prey to the political class, handling whom and keeping them away from the spoils of office is in itself often a full-time vocation for the honest IAS officer.
The classic Westminster model, on which IAS is based, expected that while politicians would debate and legislate policy, civil servants would implement policy.
This has over the years been turned on its head, for politicians have found it "profitable" to get into every aspect of execution, while the civil service is left to write policy. With the advent of criminals in politics and the huge role that money plays in elections, bureaucrats prefer masterly inaction to any form of risk-taking.
Reforms in IAS are needed urgently.
First, IAS must not necessarily be a lifetime appointment. The initial appointment should be for a period of, say, 15 years, after which every officer's performance should be evaluated by a constitutional authority such as the Union Public Service Commission, based on a 360-degree kind of appraisal which is considered superior to traditional forms of assessment. Then, they should be hired on five-seven-year contracts with specific performance targets through a competitive process.
The terms of the contract should incentivize performance with accountability to results, not just to process.
There is no gainsaying the fact that the contribution of IAS officers is often extraordinary but overlooked. We often forget that M. Damodaran, who turned the former Unit Trust of India around, and Y.V. Reddy and D. Subbarao, responsible for steering India's central bank under trying global economic circumstances, are all from IAS. Rentala Chandrasekhar led India's e-government revolution. T.V.
Somanathan designed a world-class blueprint for the Chennai Metro, with minimal fiscal burden on the government.
S.R. Rao cleaned up Surat in circumstances where no private sector chief executive would go for any amount of money or incentive. Countless faceless IAS officers work selflessly every day in circumstances which many of us won't work in.
Except the civil services of Japan, China, the UK, Australia, New Zealand and Canada, there is not much to write home about most of them. In these countries, civil servants are invariably masters of their subject matter, courteous and efficient. But then, they don't report to the kind of political masters IAS does, they don't deal with the numbers and complexity that India offers.
India cannot have a 21st century economy run by a 19th century civil service using Jurassic era rule books and laws.
Unless IAS is reformed where necessary and celebrated where due, good governance will remain just good rhetoric.
(Srivatsa Krishna is a Harvard MBA and an Indian Administrative Service officer. He writes weekly on business, government, infrastructure and entrepreneurship. The views expressed here are his own.)
Defending the indefensible when popular public perception views it as being indefensible is even harder to do. Philip Mason wrote his class many years ago by the name The Men Who Ruled India about the Indian Civil Service (ICS) and how it shaped India's destiny. Since then, much water has flowed under the proverbial bridge, and as an Indian Administrative Service (IAS) officer who has travelled, interacted and negotiated with civil services around the world, I can say with a lot of pride that IAS is, even today, despite a number of fundamental flaws, world class in several respects.
Sadly, India has one of the finest higher civil services in the world, sitting on top of one of the worst lower civil services, which accounts for many, but not all, of its flaws.
Let's start with the system of recruitment:
About 500,000 candidates write a year-long, multi-stage examination, competing for just 80 seats--half of which are reserved--in IAS, and is considered by many to be one of the most rigorous contests in the world. That's a success percentage of 0.02% versus about 250,000 candidates appearing for about 6,000 Indian Institutes of Technology seats each year, with a success rate of 2.96%. No other examination in the world has odds the national civil services examination of India has.
Yet, while the latter are, justifiably, celebrated, the former, often regarded as the "best among the brightest", are today the object of scorn and disgust, blamed for the various ills that plague the country. Still, quite a few officers from IAS are wooed at astronomical salaries by the private sector for their talent, relationships, education, and rich and diverse ground-level experience, which should give some idea of their market value.
People are quick to criticize IAS, but they forget that corporate titans such as the redoubtable Russi Mody, Yogi Deveshwar and many others failed even in autonomous entities such as Air India. Many have fallen prey to the political class, handling whom and keeping them away from the spoils of office is in itself often a full-time vocation for the honest IAS officer.
The classic Westminster model, on which IAS is based, expected that while politicians would debate and legislate policy, civil servants would implement policy.
This has over the years been turned on its head, for politicians have found it "profitable" to get into every aspect of execution, while the civil service is left to write policy. With the advent of criminals in politics and the huge role that money plays in elections, bureaucrats prefer masterly inaction to any form of risk-taking.
Reforms in IAS are needed urgently.
First, IAS must not necessarily be a lifetime appointment. The initial appointment should be for a period of, say, 15 years, after which every officer's performance should be evaluated by a constitutional authority such as the Union Public Service Commission, based on a 360-degree kind of appraisal which is considered superior to traditional forms of assessment. Then, they should be hired on five-seven-year contracts with specific performance targets through a competitive process.
The terms of the contract should incentivize performance with accountability to results, not just to process.
There is no gainsaying the fact that the contribution of IAS officers is often extraordinary but overlooked. We often forget that M. Damodaran, who turned the former Unit Trust of India around, and Y.V. Reddy and D. Subbarao, responsible for steering India's central bank under trying global economic circumstances, are all from IAS. Rentala Chandrasekhar led India's e-government revolution. T.V.
Somanathan designed a world-class blueprint for the Chennai Metro, with minimal fiscal burden on the government.
S.R. Rao cleaned up Surat in circumstances where no private sector chief executive would go for any amount of money or incentive. Countless faceless IAS officers work selflessly every day in circumstances which many of us won't work in.
Except the civil services of Japan, China, the UK, Australia, New Zealand and Canada, there is not much to write home about most of them. In these countries, civil servants are invariably masters of their subject matter, courteous and efficient. But then, they don't report to the kind of political masters IAS does, they don't deal with the numbers and complexity that India offers.
India cannot have a 21st century economy run by a 19th century civil service using Jurassic era rule books and laws.
Unless IAS is reformed where necessary and celebrated where due, good governance will remain just good rhetoric.
(Srivatsa Krishna is a Harvard MBA and an Indian Administrative Service officer. He writes weekly on business, government, infrastructure and entrepreneurship. The views expressed here are his own.)
Taxmen give tax code the thumbs-down
Taxmen give tax code the thumbs-down
Taxmen across the country have been sharply critical of the Direct Tax Code, which was open for public comment in August, opposing proposals to cut personal income and corporate tax and scrap taxes on various transactions, on grounds that these would lead to heavy revenues losses.
This was evident in a report that the National Academy of Direct Taxes, the apex training and educational body for direct taxes, has forwarded to a Central Board of Direct Taxes (CBDT) committee. The report consists of a compilation of the views of tax officials.
The CBDT committee will finalise these recommendations and send it to the finance ministry, which is now examining the code.
To start with, the report said the new changes proposed in the code will amount to an estimated revenue loss of Rs 55,000 crore in 2011-12. This includes personal tax revenue loss of Rs 25,000 crore and corporate tax revenue loss of Rs 30,000 crore, which includes the removal of the fringe benefit tax, the securities transaction tax, the cash withdrawal tax and reduction of corporate tax rate as suggested in the code.
Taxmen are unhappy that the code was prepared without prior consultation of public, professional bodies or even the income tax department. They also believe it would be difficult to implement the code before April 2011, since training officers and staff would require considerable time .
The report said the Law Commission, which introduced the original Direct Tax Code of 1961, had first constituted a committee in 1956 to examine the various provisions, invited suggestions from the public at large and then submitted the draft report in 1958 before the Act came into existence in 1961.
Rather than tinkering with existing structure, the report suggested the Income Tax Act 1961 should be simplified by incorporating various circulars, notifications and settled judicial pronouncements. New tax policies then should be incorporated only after they are referred by the CBDT. Thereafter, the Law Commission should be asked to bring in a comprehensive guidance document in lucid language.
"The report has suggested either retaining the corporate tax rate at 30 per cent or revising it upwards to avoid the severe shortfall in tax collection from companies.
"The Direct Tax Code proposes to reduce the present rate of 33.99 per cent corporate tax to 25 per cent and its effect will be tax-neutral with withdrawal of all these exemptions/deductions available to companies. However, it is evident that most of the exemptions cannot be removed given the nature of businesses in some sectors and the existing provisions in the code itself," the report said.
Similarly, in personal taxes, the code proposes to reduce taxes by widening tax slabs with the underlying presumption that it would be set off by better tax compliance.
However, the Academy's report said personal tax rates have been reduced significantly over the years, which is evident from the sluggish growth in personal taxes in the current financial year so far. It has also suggested restoring several tax benefits for personal savings to ensure voluntary tax compliance by individuals and the salaried class, which constitutes a large component of income tax payers.
The report also said the proposal to abolish long- and short-term capital gains tax and tax capital gains at regular tax rates would prove detrimental to wealth creation, productivity and mobilisation of long-term investment capital.
Instead, the report has recommended that the differential tax rate for long- and short-term capital gains tax should continue as a slab of lower rate structures, separate from the normal rate slab.
For international taxation, the report has asked for clarifications on the definition of assets for companies assessed under the minimum alternate tax, and stringent laws to check understatement of assets by companies. The report, however, is of the view that the proposed increase in the capital gains tax rate from zero to 30 per cent for non-residents could adversely affect equity investments in Indian companies.
The report has also sought clear guidelines for selecting cases for scrutiny and strict rules to discourage non-payment of tax deducted at source (TDS). TDS is one of the most effective and painless modes of tax collection, which ensures regular cash flow to the government, said the report.
WHAT TAXMEN WANT
(Some key suggestions)
On personal tax
Upward revision of tax rates and narrowing of tax slabs
Reduce exemption limit for wealth tax to Rs 10 crore against Rs 50 crore to capture greater mass
Tax to be exempt on employer contribution to provident fund and public PF
Children education allowance, children hostel allowance and house rent allowance to be made tax exempt
For retirement benefits under VRS, gratuity, principal amount exceeding Rs 50 lakh and interest in excess of Rs 5 lakh to be taxed due to lack of any other social security network.
For tax treatment of personal savings , exempt-exempt- tax ( EET) to be made applicable only for income accruing in the year of withdrawal
100 per cent tax deduction for medical reimbursement since medical reimbursement is mostly less than the total medical expense
Deductions from LTC , leave encashment to be allowed up to Rs 1 lakh and Rs 5 lakh respectively from taxable income
On corporate tax
Clear rules to check tax evasion by understatement of assets by companies paying minimum alternate tax
Increase corporate tax rate or keep it at 30 per cent ( proposed 25 per cent)
Dividend taxation to be made receiver based and not source based
Not to roll out investment-linked incentivisation of tax exemptions immediately without research and evidence
Include income or gains from share transfers involving business reorganisation, sale/ purchase within a company with its subsidiary or between companies or any form of distribution of assets to shareholders to attract capital gains tax
Differentiation to be maintained in long-term and short-term capital gains tax
The taxmen also suggested that the provision for TDS payments be tightened for non-tax paying entities like the government, non-profit organisations and companies with huge losses.
The report has also recommended revival of the settlement commission as the appellate authority with wide powers of plea bargaining, parallel to facilities of compounding and consent orders for other regulators.
The report has strongly recommended against any modification to the present organisation structure saying it would hamper implementation of the new Act with the new processes.
Taxmen across the country have been sharply critical of the Direct Tax Code, which was open for public comment in August, opposing proposals to cut personal income and corporate tax and scrap taxes on various transactions, on grounds that these would lead to heavy revenues losses.
This was evident in a report that the National Academy of Direct Taxes, the apex training and educational body for direct taxes, has forwarded to a Central Board of Direct Taxes (CBDT) committee. The report consists of a compilation of the views of tax officials.
The CBDT committee will finalise these recommendations and send it to the finance ministry, which is now examining the code.
To start with, the report said the new changes proposed in the code will amount to an estimated revenue loss of Rs 55,000 crore in 2011-12. This includes personal tax revenue loss of Rs 25,000 crore and corporate tax revenue loss of Rs 30,000 crore, which includes the removal of the fringe benefit tax, the securities transaction tax, the cash withdrawal tax and reduction of corporate tax rate as suggested in the code.
Taxmen are unhappy that the code was prepared without prior consultation of public, professional bodies or even the income tax department. They also believe it would be difficult to implement the code before April 2011, since training officers and staff would require considerable time .
The report said the Law Commission, which introduced the original Direct Tax Code of 1961, had first constituted a committee in 1956 to examine the various provisions, invited suggestions from the public at large and then submitted the draft report in 1958 before the Act came into existence in 1961.
Rather than tinkering with existing structure, the report suggested the Income Tax Act 1961 should be simplified by incorporating various circulars, notifications and settled judicial pronouncements. New tax policies then should be incorporated only after they are referred by the CBDT. Thereafter, the Law Commission should be asked to bring in a comprehensive guidance document in lucid language.
"The report has suggested either retaining the corporate tax rate at 30 per cent or revising it upwards to avoid the severe shortfall in tax collection from companies.
"The Direct Tax Code proposes to reduce the present rate of 33.99 per cent corporate tax to 25 per cent and its effect will be tax-neutral with withdrawal of all these exemptions/deductions available to companies. However, it is evident that most of the exemptions cannot be removed given the nature of businesses in some sectors and the existing provisions in the code itself," the report said.
Similarly, in personal taxes, the code proposes to reduce taxes by widening tax slabs with the underlying presumption that it would be set off by better tax compliance.
However, the Academy's report said personal tax rates have been reduced significantly over the years, which is evident from the sluggish growth in personal taxes in the current financial year so far. It has also suggested restoring several tax benefits for personal savings to ensure voluntary tax compliance by individuals and the salaried class, which constitutes a large component of income tax payers.
The report also said the proposal to abolish long- and short-term capital gains tax and tax capital gains at regular tax rates would prove detrimental to wealth creation, productivity and mobilisation of long-term investment capital.
Instead, the report has recommended that the differential tax rate for long- and short-term capital gains tax should continue as a slab of lower rate structures, separate from the normal rate slab.
For international taxation, the report has asked for clarifications on the definition of assets for companies assessed under the minimum alternate tax, and stringent laws to check understatement of assets by companies. The report, however, is of the view that the proposed increase in the capital gains tax rate from zero to 30 per cent for non-residents could adversely affect equity investments in Indian companies.
The report has also sought clear guidelines for selecting cases for scrutiny and strict rules to discourage non-payment of tax deducted at source (TDS). TDS is one of the most effective and painless modes of tax collection, which ensures regular cash flow to the government, said the report.
WHAT TAXMEN WANT
(Some key suggestions)
On personal tax
Upward revision of tax rates and narrowing of tax slabs
Reduce exemption limit for wealth tax to Rs 10 crore against Rs 50 crore to capture greater mass
Tax to be exempt on employer contribution to provident fund and public PF
Children education allowance, children hostel allowance and house rent allowance to be made tax exempt
For retirement benefits under VRS, gratuity, principal amount exceeding Rs 50 lakh and interest in excess of Rs 5 lakh to be taxed due to lack of any other social security network.
For tax treatment of personal savings , exempt-exempt- tax ( EET) to be made applicable only for income accruing in the year of withdrawal
100 per cent tax deduction for medical reimbursement since medical reimbursement is mostly less than the total medical expense
Deductions from LTC , leave encashment to be allowed up to Rs 1 lakh and Rs 5 lakh respectively from taxable income
On corporate tax
Clear rules to check tax evasion by understatement of assets by companies paying minimum alternate tax
Increase corporate tax rate or keep it at 30 per cent ( proposed 25 per cent)
Dividend taxation to be made receiver based and not source based
Not to roll out investment-linked incentivisation of tax exemptions immediately without research and evidence
Include income or gains from share transfers involving business reorganisation, sale/ purchase within a company with its subsidiary or between companies or any form of distribution of assets to shareholders to attract capital gains tax
Differentiation to be maintained in long-term and short-term capital gains tax
The taxmen also suggested that the provision for TDS payments be tightened for non-tax paying entities like the government, non-profit organisations and companies with huge losses.
The report has also recommended revival of the settlement commission as the appellate authority with wide powers of plea bargaining, parallel to facilities of compounding and consent orders for other regulators.
The report has strongly recommended against any modification to the present organisation structure saying it would hamper implementation of the new Act with the new processes.
Sunday, October 11, 2009
Can Crude earn huge forex to India ? Yes
Can Crude earn huge forex to India
Japan is famous for its high-quality steel manufacturing despite being an iron-deficit nation. It imports iron and exports value-added items like ships and cars to create huge trade surpluses.
India could develop a similar situation with respect to another key commodity — crude. India imports about 75 per cent of its crude and currently has around 12-15 per cent surplus refining capacity, which is exported in the form of petrol, diesel, aviation fuel, etc.
Most of India's refiners are undertaking major capacity expansions and although crude imports will rise, domestic refining capacity will ascend much faster. By 2012-13, India could generate huge forex surpluses on the petroleum front. This has very interesting implications.
Some rough numbers. India imported 128 million tonnes of crude last year - about 75 per cent of total consumption - for a cost of $76 billion ($67 bn in 2007-08). Over 160 mt of crude was processed by Indian refineries (Reliance's new 29 mtpa facility came onstream only in mid-December 2008).
About 135 mt of throughput was consumed domestically. Products from about 25 mtpa of throughput was exported for revenues of $30 billion, up from $7 billion in 2004-05. Petro-exports contributed 17 per cent of all merchandise exports.
Domestic consumption will rise at 7-8 per cent compounded annual growth rate (CAGR) over the next five years. Domestic crude production will also rise. Once Cairn's new Rajasthan fields and Reliance's offshore KG assets are in full production. India will produce 55 mtpa, up from the current 45 mtpa. (About 1 lakh barrels per day = 5 mtpa). By 2012, Indian refining capacity should be 260-270 mtpa, up from a current 175 mtpa. Domestic demand will reach around 160 mtpa by then. About 100-110 mtpa of products could be exported.
Assocham did a study that suggested that by 2012-13 India's petro-product exports would fetch a surplus of about $70 bn over the import bill. The crude-product equation will clearly change to forex-surplus even if the estimates are optimistic
Japan is famous for its high-quality steel manufacturing despite being an iron-deficit nation. It imports iron and exports value-added items like ships and cars to create huge trade surpluses.
India could develop a similar situation with respect to another key commodity — crude. India imports about 75 per cent of its crude and currently has around 12-15 per cent surplus refining capacity, which is exported in the form of petrol, diesel, aviation fuel, etc.
Most of India's refiners are undertaking major capacity expansions and although crude imports will rise, domestic refining capacity will ascend much faster. By 2012-13, India could generate huge forex surpluses on the petroleum front. This has very interesting implications.
Some rough numbers. India imported 128 million tonnes of crude last year - about 75 per cent of total consumption - for a cost of $76 billion ($67 bn in 2007-08). Over 160 mt of crude was processed by Indian refineries (Reliance's new 29 mtpa facility came onstream only in mid-December 2008).
About 135 mt of throughput was consumed domestically. Products from about 25 mtpa of throughput was exported for revenues of $30 billion, up from $7 billion in 2004-05. Petro-exports contributed 17 per cent of all merchandise exports.
Domestic consumption will rise at 7-8 per cent compounded annual growth rate (CAGR) over the next five years. Domestic crude production will also rise. Once Cairn's new Rajasthan fields and Reliance's offshore KG assets are in full production. India will produce 55 mtpa, up from the current 45 mtpa. (About 1 lakh barrels per day = 5 mtpa). By 2012, Indian refining capacity should be 260-270 mtpa, up from a current 175 mtpa. Domestic demand will reach around 160 mtpa by then. About 100-110 mtpa of products could be exported.
Assocham did a study that suggested that by 2012-13 India's petro-product exports would fetch a surplus of about $70 bn over the import bill. The crude-product equation will clearly change to forex-surplus even if the estimates are optimistic
Weekend investing mantra
"Willingness to take small losses in some stocks and to let profits grow bigger and bigger in more promising stocks is a sign of good investment management. Taking small profits in good investments and letting losses grow in bad ones is a sign of abominable investment judgment. A profit should never be taken just for the satisfaction of taking it." - Philip Fisher
"Willingness to take small losses in some stocks and to let profits grow bigger and bigger in more promising stocks is a sign of good investment management. Taking small profits in good investments and letting losses grow in bad ones is a sign of abominable investment judgment. A profit should never be taken just for the satisfaction of taking it." - Philip Fisher
Cancer Clinic In Gangtok
Gangtok:
An Outpatient Cancer clinic shall be operational in Gangtok at Ruchi Diagnostics from 24th Oct, 2009 and subsequently shall be open on every 2nd and 4th Saturday between 11.00 AM to 2.30 pm.
Eminent cancer specialist, Dr. Pankaj Chowdhary, who is presently attached with North Bengal Oncology Centre, shall be the visiting doctor. This will facilitate the patients to get their regular check up here in Gangtok at an interval of 15 days. Patients unable to take long journey can also take the advantage to get their check up done.
This clinic shall also be useful for those cancer patients who have had their surgeries done and require a follow up consultation with the specialist. Patients undergoing radiotherapy and chemotherapy can also take the consultation at this clinic. Patients seeking appointments may contact telephone number 98320 92092, says a press release by Mr. Ramesh Periwal, Managing Director, Ruchi Diagnostic Clinic.
Gangtok:
An Outpatient Cancer clinic shall be operational in Gangtok at Ruchi Diagnostics from 24th Oct, 2009 and subsequently shall be open on every 2nd and 4th Saturday between 11.00 AM to 2.30 pm.
Eminent cancer specialist, Dr. Pankaj Chowdhary, who is presently attached with North Bengal Oncology Centre, shall be the visiting doctor. This will facilitate the patients to get their regular check up here in Gangtok at an interval of 15 days. Patients unable to take long journey can also take the advantage to get their check up done.
This clinic shall also be useful for those cancer patients who have had their surgeries done and require a follow up consultation with the specialist. Patients undergoing radiotherapy and chemotherapy can also take the consultation at this clinic. Patients seeking appointments may contact telephone number 98320 92092, says a press release by Mr. Ramesh Periwal, Managing Director, Ruchi Diagnostic Clinic.
AFTER SIKKIM NOW CASINO IN DAMAN
After Goa and Sikkim, now a Casino is being built by Daman Hospitality Pvt. Ltd (DHPL) is raising Rs35 crore from Madison India Real Estate Fund Ltd, a $150 million (Rs698 crore) fund managed by Paracor Capital Advisors Pvt. Ltd,
DHPL is building the casino at a resort in the Union territory of Daman near the west coast in Maharashtra.
The resort is being developed and managed by the $172 million, New York-listed gaming, entertainment and hospitality chain Thunderbird Resorts.
Srinidhi Rao, country head of Thunderbird, confirmed the development.
Paracor's previous investments in realty have been in hotel chain Sabari Inn and a residential development near Chennai.
In India, casinos are legal only in Daman and Diu, Goa and Sikkim.
The private equity (PE) investment in an Indian casino comes at a time when the global industry is facing depressed consumer spending and huge debts.
Station Casinos Inc., one of the largest in Las Vegas, US, which became the biggest PEcontrolled firm to file for bankruptcy earlier this year, is a case in point.
The deal is interesting in the Indian context, too. PE deal flow in leisure and hospitality businesses, largely driven by consumer sentiment and discretionary spending, has suffered a steep fall in the first nine months of calendar 2009.
Even though PE firms invested $127 million across 11 deals in January to September last year, they pumped in only $40 million over nine deals so far in 2009, according to VCCEdge, the financial research platform of VCCircle.
DHPL's casino, which aims to start operations by the end of this year, will be branded as Fiesta and have a gaming licence under the Gambling Act of Goa, Daman and Diu, 1976.
The project, spread across 40,000 sq. ft, is expected to cost around Rs375 crore, including a 200-room resort. The casino is expected to have 500 electronic slot machines and will host games such as poker, blackjack and roulette.
DHPL is promoted by Ketan Patel, son of former Daman and Diu Congress MP Dahya Patel.
DHPL is building the casino at a resort in the Union territory of Daman near the west coast in Maharashtra.
The resort is being developed and managed by the $172 million, New York-listed gaming, entertainment and hospitality chain Thunderbird Resorts.
Srinidhi Rao, country head of Thunderbird, confirmed the development.
Paracor's previous investments in realty have been in hotel chain Sabari Inn and a residential development near Chennai.
In India, casinos are legal only in Daman and Diu, Goa and Sikkim.
The private equity (PE) investment in an Indian casino comes at a time when the global industry is facing depressed consumer spending and huge debts.
Station Casinos Inc., one of the largest in Las Vegas, US, which became the biggest PEcontrolled firm to file for bankruptcy earlier this year, is a case in point.
The deal is interesting in the Indian context, too. PE deal flow in leisure and hospitality businesses, largely driven by consumer sentiment and discretionary spending, has suffered a steep fall in the first nine months of calendar 2009.
Even though PE firms invested $127 million across 11 deals in January to September last year, they pumped in only $40 million over nine deals so far in 2009, according to VCCEdge, the financial research platform of VCCircle.
DHPL's casino, which aims to start operations by the end of this year, will be branded as Fiesta and have a gaming licence under the Gambling Act of Goa, Daman and Diu, 1976.
The project, spread across 40,000 sq. ft, is expected to cost around Rs375 crore, including a 200-room resort. The casino is expected to have 500 electronic slot machines and will host games such as poker, blackjack and roulette.
DHPL is promoted by Ketan Patel, son of former Daman and Diu Congress MP Dahya Patel.
Saturday, October 10, 2009
TECHNOLOGIES AS SOLUTIONS
Technologies as solutions
Just like open ended mutual funds have made investors' focus short term, so, perhaps, has 5 year democracy made political focus short term. They care little about strategic planning for the future, unsure, as they are, about being re-elected. Their policies leave, in their wake, messes for others to clean up, since they lack the political will to take necessary but unpopular action.
The cleaning up is left to judiciary, as evidenced by the Supreme Court judgement compelling transporters to use cleaner CNG, instead of diesel adulterated with subsidised kerosene, which was asphyxiating Delhi. The politicians nor the bureaucrats had the gumption to take on the mafia that benefitted from such adulteration (they still don't! and continue with an incorrect subsidy delivery mechanism).
Technologies are also coming to the rescue, but politicians, again, are slow to adopt them, for want of a long term interest in bettering society. Consider, e.g. inclusive banking. There is much talk about banking not having reached the majority of villages, as setting up a brick and mortar bank is unviable. This has many social consequences. One is the excessive reliance on usurious money lenders, with the consequent suicide of farmers unable to service such usurious debt obligations. Another is the huge appetite for gold/silver in the absence of safe alternatives to store savings (with banking services, financial products, such as equity, could replace, over time, savings in bullion).
As per the Economist of Sep 26, mobile phones can, if allowed, become banks. In Kenya, telecom operator Safaricom has launched M-PESA, a mobile money service, in 2007, and it has changed lives. Money can be transferred via sms, quickly, efficiently and cost effectively, without needing to set up brick and mortar branches. This is inclusive banking! Why has India not adopted it? Because of 'security concerns' (what if terrorists use it to transfer funds for funding their operation?). This concern is easily addressed by setting a limit on the amount transferred; just as ATMs have a limit on withdrawals.
Should mobile money be permitted, as, indeed, it ought, it would provide a fillip to the telecom sector. Telecom stocks were hit last week, after TRAI asked telcos to offer tariff plans based on 'per second' billing. Right now it is 'per minute' billing; hence the customer is billed even for a call lasting a second. Another fillip to the stocks would come from the long awaited auction of 3G spectrum, in December. They would then be able to offer a host of value added services. From January the telecom space would become interesting as mobile number portability (MNP) kicks in. The freedom this gives customers to switch from an existing operator to another one, would witness a lot of churn. It would result in even more competitive tariff plans and better customer service.
Mobile phones are also being used by farmers, e.g. to turn on/off their water pumps, through a device called Nano Ganesh.
Kamal Nath, Minister Roads, Transport and Highways, who is undertaking a transformative investment programme of Rs 3 lac crores in the road sector, wants a single road tax which will allow free movement of freight across states. The fact that we are unable to prevent stoppage of trucks at border crossings, in order that the State collects octroi, is a crying shame. It poses a senseless hurdle to the advantages of the huge domestic market provided by the federated structure. The border checkpoints are, basically, toll booths for corruption. The single road tax, if it helps supplant the asinine octroi system, would indeed be a boon. Here, again, RFID technology can help in identifying the cargo. This enables movement of vehicles without stopping, and the data contained on the RFID chip to be read by a scanner.
Basically, India has to undergo huge structural reforms. It is untenable that the 60% of the population that is dependant for its livelihood on agriculture, gets only 18% of national income. Something has to give.
So, for me, a rise in food inflation is a welcome trend, not a worrying one as expressed by most economists. Provided the additional income goes to the farmers and not to middlemen or hoarders. As yet, there is no worry of rising food, or other prices, and so the Government is continuing with an accommodative monetary policy. Australia became, last week, the first G20 country to increase interest rates. Others will follow. When they do, it would reduce relative attraction of equity versus debt.
The social impact of such an iniquitous distribution of national income manifests itself in Maoist/Naxal violence which resulted in the death of 27 policemen in Maharashtra, their gruesome beheading in AP, and declaration of war on them by the state. Investors ought to be alarmed at this turn of events.
The coming week will end in Divali, so here's wishing readers a Happy Divali
Coutsey: Jawahir Mulraj.
Just like open ended mutual funds have made investors' focus short term, so, perhaps, has 5 year democracy made political focus short term. They care little about strategic planning for the future, unsure, as they are, about being re-elected. Their policies leave, in their wake, messes for others to clean up, since they lack the political will to take necessary but unpopular action.
The cleaning up is left to judiciary, as evidenced by the Supreme Court judgement compelling transporters to use cleaner CNG, instead of diesel adulterated with subsidised kerosene, which was asphyxiating Delhi. The politicians nor the bureaucrats had the gumption to take on the mafia that benefitted from such adulteration (they still don't! and continue with an incorrect subsidy delivery mechanism).
Technologies are also coming to the rescue, but politicians, again, are slow to adopt them, for want of a long term interest in bettering society. Consider, e.g. inclusive banking. There is much talk about banking not having reached the majority of villages, as setting up a brick and mortar bank is unviable. This has many social consequences. One is the excessive reliance on usurious money lenders, with the consequent suicide of farmers unable to service such usurious debt obligations. Another is the huge appetite for gold/silver in the absence of safe alternatives to store savings (with banking services, financial products, such as equity, could replace, over time, savings in bullion).
As per the Economist of Sep 26, mobile phones can, if allowed, become banks. In Kenya, telecom operator Safaricom has launched M-PESA, a mobile money service, in 2007, and it has changed lives. Money can be transferred via sms, quickly, efficiently and cost effectively, without needing to set up brick and mortar branches. This is inclusive banking! Why has India not adopted it? Because of 'security concerns' (what if terrorists use it to transfer funds for funding their operation?). This concern is easily addressed by setting a limit on the amount transferred; just as ATMs have a limit on withdrawals.
Should mobile money be permitted, as, indeed, it ought, it would provide a fillip to the telecom sector. Telecom stocks were hit last week, after TRAI asked telcos to offer tariff plans based on 'per second' billing. Right now it is 'per minute' billing; hence the customer is billed even for a call lasting a second. Another fillip to the stocks would come from the long awaited auction of 3G spectrum, in December. They would then be able to offer a host of value added services. From January the telecom space would become interesting as mobile number portability (MNP) kicks in. The freedom this gives customers to switch from an existing operator to another one, would witness a lot of churn. It would result in even more competitive tariff plans and better customer service.
Mobile phones are also being used by farmers, e.g. to turn on/off their water pumps, through a device called Nano Ganesh.
Kamal Nath, Minister Roads, Transport and Highways, who is undertaking a transformative investment programme of Rs 3 lac crores in the road sector, wants a single road tax which will allow free movement of freight across states. The fact that we are unable to prevent stoppage of trucks at border crossings, in order that the State collects octroi, is a crying shame. It poses a senseless hurdle to the advantages of the huge domestic market provided by the federated structure. The border checkpoints are, basically, toll booths for corruption. The single road tax, if it helps supplant the asinine octroi system, would indeed be a boon. Here, again, RFID technology can help in identifying the cargo. This enables movement of vehicles without stopping, and the data contained on the RFID chip to be read by a scanner.
Basically, India has to undergo huge structural reforms. It is untenable that the 60% of the population that is dependant for its livelihood on agriculture, gets only 18% of national income. Something has to give.
So, for me, a rise in food inflation is a welcome trend, not a worrying one as expressed by most economists. Provided the additional income goes to the farmers and not to middlemen or hoarders. As yet, there is no worry of rising food, or other prices, and so the Government is continuing with an accommodative monetary policy. Australia became, last week, the first G20 country to increase interest rates. Others will follow. When they do, it would reduce relative attraction of equity versus debt.
The social impact of such an iniquitous distribution of national income manifests itself in Maoist/Naxal violence which resulted in the death of 27 policemen in Maharashtra, their gruesome beheading in AP, and declaration of war on them by the state. Investors ought to be alarmed at this turn of events.
The coming week will end in Divali, so here's wishing readers a Happy Divali
Coutsey: Jawahir Mulraj.
norrek,simplipal and panchmarhi in world network of biosphere reserves
UNESCO General Conference:
Shri Kapil Sibal thanks UNESCO for Including Nokrek , Simplipal and Panchmarhi in World Network of Biosphere Reserves
--------------------------------------------------------------------------------
10 oCT 2009
Shri Kapil Sibal has thanked the international Coordinating Committee of the Man and the Biosphere Programme of UNESCO for inclusion of three biosphere reserves , Nokrek (Meghalaya), Simplipal (Orissa) and Pachmarhi (Madhya Pradesh) in the World Network of Biosphere Reserves during 2009. He was speaking during the “General Policy Debate” at the 35th Session of the General Conference of UNESCO in Paris today. He informed the gathering that India would be bringing to the General Conference at its next session its proposal for the establishment of a UNESCO Category II Centre for Heritage Conservation and Management using the existing facilities at the Wildlife Institute at Dehradun India.
UNESCO would commemorate the 100th Anniversary of Mother Teresa in 2010 and the 150th Anniversary of Rabindranath Tagore in 2011, both initiatives brought by India, he added.
Shri Sibal said that India has fully supported the UN Decade of Education for Sustainable Development based on the premise that Education must become a tool for ushering in a sustainable lifestyle pattern so that developing countries can leapfrog to a sustainable developed economy based on respect for the environment, international understanding, harmony and peace. He said, “We in India believe that the global community must rededicate itself to building a society free from conflict and adopt and adapt to sustainable lifestyles. At the heart of a global community free from conflict is the spirit of non-violence and the message of the Mahatma…. India, all Member States and the global community should advocate for a more inclusive structure for global economic governance as reiterated by our Prime Minister.”
The HRD Minister said that as the Chairperson of the Steering Committee of the South-South Cooperation Programme/Fund, India looks forward to the early implementation of Fund Raising Strategy and raising the profile of the unique South-South Fund in the field of education through successful celebration of South-South Cooperation Day on 15th December, 2009. He said that India welcomes the operationalization of the South-South Cooperation Programme/ Fund for Education pilot projects for the different regions of G-77 & China being implemented.
Shri Sibal offered sharing the e-learning materials prepared by India under the National Mission for ICT by the Indian Institutes of Technologies (IITs) so that all those around who wish to access quality knowledge can do so freely. He stated that India is shortly going to initiate a special project aimed at preservation of the endangered languages in India. He said, “India has also been playing a proactive role in promoting use of multilingualism in cyberspace. To enable wide proliferation of ICT in Indian languages, a major initiative has been taken to make available software tools and fonts in various Indian languages freely to the general public. As a result, software tools and fonts are now available in about 16 Indian languages.”
Shri Sibal made a request to UNESCO to consider reviving the Regional Office for Information and Communications which was earlier located in New Delhi, in order to share the benefits of the development of science and technology with the countries of the Asia Pacific Region. He made this request especially in the context of India having operational zed in October 2007 a state-of-the art Tsunami Early Warning System, set up at a cost of approximately US $ 31 million, which is of benefit to the entire region. India has expressed its readiness to assume the responsibility of RTW Provider for the Indian Ocean region and has offered to set up an integrated multi-hazard Warning Centre.
Shri Sibal expressed pride that Professor Yash Pal from India and Prof. Trinh Xuan Thuan from Vietnam will be jointly awarded the UNESCO-Kalinga Prize for popularization of Science 2009. UNESCO- Kalinga Prize is the oldest prize of UNESCO and we are pleased that it would be awarded again after a gap of 3 years, he added.
Shri Sibal, on the occasion, paid tributes to Mr. Koichiro Matsuura who will be relinquishing the charge of Director- General, UNESCO after devoting 10 years of his career to the organisation. During his tenure, Shri Matsuura brought in significant reforms and introduced modern management in UNESCO, he added, He also congratulated the Ambassador of Bulgaria to UNESCO, Ambassador Bokova on her election by the Executive Board as DG-designate of UNESCO.
PIB
( Editorial: Sikkim should also urge with Unesco to get it in the world network of Biosphere Reserves)
Shri Kapil Sibal thanks UNESCO for Including Nokrek , Simplipal and Panchmarhi in World Network of Biosphere Reserves
--------------------------------------------------------------------------------
10 oCT 2009
Shri Kapil Sibal has thanked the international Coordinating Committee of the Man and the Biosphere Programme of UNESCO for inclusion of three biosphere reserves , Nokrek (Meghalaya), Simplipal (Orissa) and Pachmarhi (Madhya Pradesh) in the World Network of Biosphere Reserves during 2009. He was speaking during the “General Policy Debate” at the 35th Session of the General Conference of UNESCO in Paris today. He informed the gathering that India would be bringing to the General Conference at its next session its proposal for the establishment of a UNESCO Category II Centre for Heritage Conservation and Management using the existing facilities at the Wildlife Institute at Dehradun India.
UNESCO would commemorate the 100th Anniversary of Mother Teresa in 2010 and the 150th Anniversary of Rabindranath Tagore in 2011, both initiatives brought by India, he added.
Shri Sibal said that India has fully supported the UN Decade of Education for Sustainable Development based on the premise that Education must become a tool for ushering in a sustainable lifestyle pattern so that developing countries can leapfrog to a sustainable developed economy based on respect for the environment, international understanding, harmony and peace. He said, “We in India believe that the global community must rededicate itself to building a society free from conflict and adopt and adapt to sustainable lifestyles. At the heart of a global community free from conflict is the spirit of non-violence and the message of the Mahatma…. India, all Member States and the global community should advocate for a more inclusive structure for global economic governance as reiterated by our Prime Minister.”
The HRD Minister said that as the Chairperson of the Steering Committee of the South-South Cooperation Programme/Fund, India looks forward to the early implementation of Fund Raising Strategy and raising the profile of the unique South-South Fund in the field of education through successful celebration of South-South Cooperation Day on 15th December, 2009. He said that India welcomes the operationalization of the South-South Cooperation Programme/ Fund for Education pilot projects for the different regions of G-77 & China being implemented.
Shri Sibal offered sharing the e-learning materials prepared by India under the National Mission for ICT by the Indian Institutes of Technologies (IITs) so that all those around who wish to access quality knowledge can do so freely. He stated that India is shortly going to initiate a special project aimed at preservation of the endangered languages in India. He said, “India has also been playing a proactive role in promoting use of multilingualism in cyberspace. To enable wide proliferation of ICT in Indian languages, a major initiative has been taken to make available software tools and fonts in various Indian languages freely to the general public. As a result, software tools and fonts are now available in about 16 Indian languages.”
Shri Sibal made a request to UNESCO to consider reviving the Regional Office for Information and Communications which was earlier located in New Delhi, in order to share the benefits of the development of science and technology with the countries of the Asia Pacific Region. He made this request especially in the context of India having operational zed in October 2007 a state-of-the art Tsunami Early Warning System, set up at a cost of approximately US $ 31 million, which is of benefit to the entire region. India has expressed its readiness to assume the responsibility of RTW Provider for the Indian Ocean region and has offered to set up an integrated multi-hazard Warning Centre.
Shri Sibal expressed pride that Professor Yash Pal from India and Prof. Trinh Xuan Thuan from Vietnam will be jointly awarded the UNESCO-Kalinga Prize for popularization of Science 2009. UNESCO- Kalinga Prize is the oldest prize of UNESCO and we are pleased that it would be awarded again after a gap of 3 years, he added.
Shri Sibal, on the occasion, paid tributes to Mr. Koichiro Matsuura who will be relinquishing the charge of Director- General, UNESCO after devoting 10 years of his career to the organisation. During his tenure, Shri Matsuura brought in significant reforms and introduced modern management in UNESCO, he added, He also congratulated the Ambassador of Bulgaria to UNESCO, Ambassador Bokova on her election by the Executive Board as DG-designate of UNESCO.
PIB
( Editorial: Sikkim should also urge with Unesco to get it in the world network of Biosphere Reserves)
ASGEA ‘dissatisfied’ with pay revision ‘style’
Assc threatens to start non-cooperation movement if proportionate raise in pay scale of all grades & ranks are not ascertained
SE Report
GANGTOK, October 9: Almost a month after the State Government announced increase in pay scales of government employees, the Central Executive Committee of All Sikkim Government Employees Association (ASGEA) today issued a press statement saying that there is a state wide dissatisfaction brewing from Grade 'C' & 'D' Government employees regarding the award of the Fourth Pay Commission of Sikkim.
The chairman of the association, Narsing Rai while listing out the root cause of the employees’ discontentment said that the pay of high level officers has been hiked by 3 to 3.22 times of the present scales whereas the pay of Grade 'C' & 'D' employees got a hike of only 2.5 times.
“High level officers are drawing 12.5 % of the pay as North East Special Duty Allowance and 25 % of North East Allowance, altogether 37.5 % in total, whereas Grade ‘C’ & ‘D’ Govt. employees were getting none of this allowances. Over & above it, the “Fourth State Pay Commission” had recommended 12.5 % as special duty allowance for us but the Committee of Secretaries dismissed this recommendation without giving any reason thereof,” Mr. Rai said in the press statement.
He added that the ratio between the lowest to highest pay scale had to decrease but instead it had increased from 1:6.2 to 1:7.2 as per the Constitution of India. “This inclination is not socialist but a bourgeoisie act,” the statement said.
To discuss over the issue, the Central Executive Committee of ASGEA had yesterday convened a review meeting with District Executive Committees of South District and West District in its head office. This meeting, it is informed made a conclusion that high level officers have not only misguided the government but have also tried to hoodwink the government with regard to recommendations of the Pay Commission pertaining to the Grade 'C' & 'D' employees.
“The recommendations of the Fourth Pay Commission must be made public in toto,” the meeting demanded.
Meanwhile, the association has planned to seek appointment with Chief Minister Pawan Chamling to place their representation before Diwali. The association as at the same time decided to start a non-cooperation movement if proportionate raise in pay scale of all grades & ranks are not ascertained.
Assc threatens to start non-cooperation movement if proportionate raise in pay scale of all grades & ranks are not ascertained
SE Report
GANGTOK, October 9: Almost a month after the State Government announced increase in pay scales of government employees, the Central Executive Committee of All Sikkim Government Employees Association (ASGEA) today issued a press statement saying that there is a state wide dissatisfaction brewing from Grade 'C' & 'D' Government employees regarding the award of the Fourth Pay Commission of Sikkim.
The chairman of the association, Narsing Rai while listing out the root cause of the employees’ discontentment said that the pay of high level officers has been hiked by 3 to 3.22 times of the present scales whereas the pay of Grade 'C' & 'D' employees got a hike of only 2.5 times.
“High level officers are drawing 12.5 % of the pay as North East Special Duty Allowance and 25 % of North East Allowance, altogether 37.5 % in total, whereas Grade ‘C’ & ‘D’ Govt. employees were getting none of this allowances. Over & above it, the “Fourth State Pay Commission” had recommended 12.5 % as special duty allowance for us but the Committee of Secretaries dismissed this recommendation without giving any reason thereof,” Mr. Rai said in the press statement.
He added that the ratio between the lowest to highest pay scale had to decrease but instead it had increased from 1:6.2 to 1:7.2 as per the Constitution of India. “This inclination is not socialist but a bourgeoisie act,” the statement said.
To discuss over the issue, the Central Executive Committee of ASGEA had yesterday convened a review meeting with District Executive Committees of South District and West District in its head office. This meeting, it is informed made a conclusion that high level officers have not only misguided the government but have also tried to hoodwink the government with regard to recommendations of the Pay Commission pertaining to the Grade 'C' & 'D' employees.
“The recommendations of the Fourth Pay Commission must be made public in toto,” the meeting demanded.
Meanwhile, the association has planned to seek appointment with Chief Minister Pawan Chamling to place their representation before Diwali. The association as at the same time decided to start a non-cooperation movement if proportionate raise in pay scale of all grades & ranks are not ascertained.
IBN7 Diamond State Award for Sikkim in ‘water & sanitation’
GANGTOK, October 9: Continuing its award winning spree, Sikkim received ‘IBN7 Diamond States Award’ after the State was adjudged the best small State in ‘water and sanitation’ category.
New Delhi Resident Commissioner Arvind Kumar received the award on behalf of the Sikkim government during a glittering function yesterday evening at New Delhi which was attended by Lok Sabha Speaker Meira Kumar as the chief guest.
Kerala and Goa won the top honour as the nation’s best big and small States during the function. Sikkim ranked fourth in the top five small states of the IBN7 rankings.
A press release informs that Sikkim was felicitated at IBN7 Diamond States Award for its significant contribution in the water and sanitation which are critical parameters of a nation’s overall well-being.
In spite of the growth that India has experienced in recent years, basic facilities like safe drinking water and sanitation remain a problem area, the release reminded.
During the award presentation ceremony, the Speaker delivered the key note address followed by an interactive session including the Chief Ministers, leaders and dignitaries and attended by dignitaries from various walks of life which included cabinet ministers, eminent politicians, lawyers and bureaucrats.
The release informs that the grand finale will be telecasted on IBN7 at 8 pm on October 11 and on CNN-IBN at 8 pm on October 17.
IBN7 Diamond States Awards is a path-breaking editorial initiative for recognizing human and social development efforts by the States of India, the release states. It added that the selection process for the ‘IBN7 Diamond States Awards 2009’ was a credible multi-pronged approach involving secondary data from authentic sources and primary data from a nationwide research exercise.
GANGTOK, October 9: Continuing its award winning spree, Sikkim received ‘IBN7 Diamond States Award’ after the State was adjudged the best small State in ‘water and sanitation’ category.
New Delhi Resident Commissioner Arvind Kumar received the award on behalf of the Sikkim government during a glittering function yesterday evening at New Delhi which was attended by Lok Sabha Speaker Meira Kumar as the chief guest.
Kerala and Goa won the top honour as the nation’s best big and small States during the function. Sikkim ranked fourth in the top five small states of the IBN7 rankings.
A press release informs that Sikkim was felicitated at IBN7 Diamond States Award for its significant contribution in the water and sanitation which are critical parameters of a nation’s overall well-being.
In spite of the growth that India has experienced in recent years, basic facilities like safe drinking water and sanitation remain a problem area, the release reminded.
During the award presentation ceremony, the Speaker delivered the key note address followed by an interactive session including the Chief Ministers, leaders and dignitaries and attended by dignitaries from various walks of life which included cabinet ministers, eminent politicians, lawyers and bureaucrats.
The release informs that the grand finale will be telecasted on IBN7 at 8 pm on October 11 and on CNN-IBN at 8 pm on October 17.
IBN7 Diamond States Awards is a path-breaking editorial initiative for recognizing human and social development efforts by the States of India, the release states. It added that the selection process for the ‘IBN7 Diamond States Awards 2009’ was a credible multi-pronged approach involving secondary data from authentic sources and primary data from a nationwide research exercise.
Friday, October 9, 2009
DIRECT TAX CODE UNDER EXAMINATION
Critical areas on DTC for detailed examination identified: FM
--------------------------------------------------------------------------------
9 OCT 2009
Finance Minister has announced that the Government has identified seven critical areas on the Direct Taxes Code for further detailed examination. At an interactive session with representatives of trade and industry from all over the country, here today, Shri Pranab Mukherjee said that the areas identified after interactions with all stakeholders are: The concept of Minimum Alternative Tax (MAT) based on gross assets; Capital Gains Taxation in the case of non-residents; The Income Tax Act and the Double Taxation Avoidance Agreement (DTAA); General Anti-Avoidance Rule (GAAR); Issues relating to effective management control and taxation of foreign companies in India; Taxation of charitable organizations; and Shift from EEE to EET taxation system.
On the apprehensions expressed regarding the time schedule for implementation of the new Direct Taxes Code, the Finance Minister assured that next steps would be taken only after a comprehensive review of the draft Direct Taxes Code by taking on board the suggestions received. Every effort would be made to meet the aspirations and expectations of our taxpayers and our vibrant corporate sector.
Shri Mukherjee said that it has been the endeavour of the government to incorporate the best practices prevailing across the globe and to use innovative methods for attaining equity—vertical and horizontal, ensure growth with sustainability, create stable fiscal eco-system and have well regulated free markets. The new Direct Tax system would also take into account established and time tested practices which have withstood judicial scrutiny. He said, “We want to present the stakeholders with a tax regime which is simple and broad based leading to lowering of tax rates, better tax compliance and reduced litigation.”
The Finance Minister said that it has been two months since the proposed draft direct tax code was released for public debate and he was moved by the amount of interest and intellectual debate it has generated amongst various sections of taxpayers, tax professionals and general public. We are receiving thoughtful feedbacks on our website and through other means—trade and industry associations, professional bodies and others, he added.
Shri Mukherjee said that he has kept his promise by putting the draft code in public domain within 45 days and he would like to expedite to give it a final shape. While thanking the industry and trade associations for enthusiastically participating in today’s deliberations, Shri Mukherjee said that he looks forward to their suggestions in making the new Direct Taxes Code an effective instrument for meeting the economic challenges and development priorities of the country. The outcome of the discussions would be used for modifying the proposals contained in the draft Direct Taxes Code, the Minister said.
Minister of State for Finance, Shri S.S. Palanimanickam, Revenue Secretary, Shri P.V. Bhide and senior officers of the Finance Ministry were also present at the interactive session.
--------------------------------------------------------------------------------
9 OCT 2009
Finance Minister has announced that the Government has identified seven critical areas on the Direct Taxes Code for further detailed examination. At an interactive session with representatives of trade and industry from all over the country, here today, Shri Pranab Mukherjee said that the areas identified after interactions with all stakeholders are: The concept of Minimum Alternative Tax (MAT) based on gross assets; Capital Gains Taxation in the case of non-residents; The Income Tax Act and the Double Taxation Avoidance Agreement (DTAA); General Anti-Avoidance Rule (GAAR); Issues relating to effective management control and taxation of foreign companies in India; Taxation of charitable organizations; and Shift from EEE to EET taxation system.
On the apprehensions expressed regarding the time schedule for implementation of the new Direct Taxes Code, the Finance Minister assured that next steps would be taken only after a comprehensive review of the draft Direct Taxes Code by taking on board the suggestions received. Every effort would be made to meet the aspirations and expectations of our taxpayers and our vibrant corporate sector.
Shri Mukherjee said that it has been the endeavour of the government to incorporate the best practices prevailing across the globe and to use innovative methods for attaining equity—vertical and horizontal, ensure growth with sustainability, create stable fiscal eco-system and have well regulated free markets. The new Direct Tax system would also take into account established and time tested practices which have withstood judicial scrutiny. He said, “We want to present the stakeholders with a tax regime which is simple and broad based leading to lowering of tax rates, better tax compliance and reduced litigation.”
The Finance Minister said that it has been two months since the proposed draft direct tax code was released for public debate and he was moved by the amount of interest and intellectual debate it has generated amongst various sections of taxpayers, tax professionals and general public. We are receiving thoughtful feedbacks on our website and through other means—trade and industry associations, professional bodies and others, he added.
Shri Mukherjee said that he has kept his promise by putting the draft code in public domain within 45 days and he would like to expedite to give it a final shape. While thanking the industry and trade associations for enthusiastically participating in today’s deliberations, Shri Mukherjee said that he looks forward to their suggestions in making the new Direct Taxes Code an effective instrument for meeting the economic challenges and development priorities of the country. The outcome of the discussions would be used for modifying the proposals contained in the draft Direct Taxes Code, the Minister said.
Minister of State for Finance, Shri S.S. Palanimanickam, Revenue Secretary, Shri P.V. Bhide and senior officers of the Finance Ministry were also present at the interactive session.
Govt is Committed to Inclusive and equitable growth: FM
--------------------------------------------------------------------------------
9 OCT 2009
Following is the Text of the speech of Finance Minister, Shri Pranab Mukherjee made at the annual function of ASSOCHAM, here today:
“It is my pleasure to be here today at the 88th annual function of ASSOCHAM. As a representative body of Indian industry and enterprise, ASSOCHAM has always been at the forefront of pursuing ideas that empower Indian entrepreneurs. It has contributed to building consensus on policy response to issues that impact growth of the economy. It has taken a lead in the dissemination of business knowledge that drives initiatives for market diversification and over all development. Indeed, I am happy to see that this engagement with the development process in the country is very much reflected in your theme for this year’s annual function, namely “Garland of Grids 2015: 10 per cent Growth through Universal Access”.
Let me start by placing the theme for this meeting against the backdrop of our recent development experience.
In a globalizing world, the challenges and opportunities of development, in general, and that of sustaining high growth over an extended period of time, in particular, have become more complex. The last two years have been a difficult period for the Indian economy which otherwise was experiencing an unprecedented spurt in its growth rate. We had to confront three major challenges originating in our external sector. First, a surge in capital inflows, which peaked in the last quarter of 2007-08. Second, an inflationary explosion in global commodity prices, which began even before the first challenge had ebbed, and hit us with great force in the middle of 2008. There was barely any time to deal with this problem before the third challenge, the global financial meltdown and collapse of international trade, hit the world with severity.
The resulting economic slowdown and recession in major developed economies adversely impacted growth in all parts of the world. It revealed critical gaps in international policy making and regulation, in risk management and international development cooperation. It also raised a number of questions on the process of international decision making and accountability that have a direct bearing on the global economic environment for the developing countries.
Most importantly, the crisis highlighted the fact that if we have to benefit from the ongoing process of globalization we have to have strong domestic economic foundations, an integrated and a coherent policy approach to protect and promote national interests. We have to deepen and broaden the domestic market so that we can ride the shocks and uncertainties of the global economy just as well as the periods of expansion and boom. This requires that we take a balanced broad based approach to our development process- an approach that is well captured by the idea of “garland of grids”.
I see the idea of national grids in diverse areas of human activity as a means to speed up the process of building a spatially evolved and regionally balanced Indian economy. It is a means to create an equitable access to resources for the people in all parts of the country, therby placing them on an equal footing.
A country of more than 1 billion persons cannot be led by growth in a few sectors or a few cities and regions of the country in a sustainable manner. With nearly two-third of the population still living in the rural areas it is important for the economy to reach out to these people and provide opportunities to them from the ongoing economic expansion at their door steps. This is essential not only for strengthening the inclusive character of the growth process, but also for anticipating and addressing the demographic issues associated with unplanned urbanization that the absence of a regionally balanced growth can potentially spark. I am not sure that everybody will agree if I say that the process of urbanization in India, by and large with the exception of a few mega cities, has been quite manageable so far, especially when one makes an international comparison with countries in the same stage of development as ours. However, it is important that we take every such step that will allow our economy to develop spatially and synergistically across different sectors of the economy to ensure the overall sustainability of the growth process and a quality of life that the ‘Aam Admi’ aspires for.
The present Government has a renewed mandate for reinforcing inclusive growth, for which the architecture was laid out by the present Government in its last term. It is a mandate for equitable development, where all legitimate aspirations of the people of India can be meaningfully realized.
In the last five years, the Gross Domestic Product of the Indian economy has grown at 8.5 per cent per annum, notwithstanding the significant dip in growth in 2008-09 on account of the global slowdown. We have succeeded in significantly raising the growth rate and sustaining the momentum of the economy to levels that are historically unprecedented. Underpinning this performance are a number of factors that will serve as sources of strength for the years ahead. Savings and investment rates have picked up; the industrial sector has demonstrated the capacity to compete with the best in the global economy; investors, domestic as well as international, have shown confidence in the evolving policy framework and the fundamentals of the economy; and there is steady expansion in domestic demand. Most importantly, the revenue buoyancy in the wake of this growth has come with a renewed public capacity to address the chronic problems of unemployment and poverty that have plagued our economy and the society.
All this gives us hope and courage to aim for a more ambitious growth path, which would give us the means to strengthen and building further the inclusive character of our economy.
We have to build and sustain an economy where the growing capabilities and rising aspirations of individuals can be matched with an expanding set of opportunities for people to enjoy. The economy should be able to support productive employment for all those who enter the labour force.
The ability to generate adequate employment opportunities will be a major factor on which the inclusiveness of the economic growth could be judged. The benefits of economic growth have to percolate down effectively to the most marginalized and vulnerable segments of the population. We need to not only bring down the incidence of poverty but bring it down quickly. There are a number of human development and socio-economic indicators that have to be improved significantly if we are too strengthen the inclusive aspect of our development process.
The present government in its last tenure has tried to bring in a paradigm shift for making the development process more inclusive. It involves creating entitlements backed by legal guarantee to improve access and provide basic amenities and opportunities for livelihood to vulnerable sections of our population. Thus, there are legal entitlements of information in the public domain, for work, education and now the Government is looking at the issue of food security as well.
In an era of rapid and broad based globalization our economy has to be integrated with the global economy to access the scarce resources, including technology, and markets if it has to become a developed nation where its people have the opportunity to realize their potential. For far too long in the past we have denied ourselves the possible benefits and opportunities that accrue from being a part of a larger growth process at the international level. We have set this right now and cannot afford to turn back. With our resources, especially the human resources and the demographic advantage that comes with having a younger population, we are uniquely placed at this juncture to make the 21st Century a truly Indian Century if we continue to build on our global linkages with our trade partners and potential markets. However, the recent global events have amply demonstrated that one has to be cautious in traversing this path.
For us, economic growth has to be an instrument for development and not an end in itself. It has to be not only inclusive but also equitable so as to sustain it over long period. In the last five years, we have moved steadfastly in that direction. It is my earnest hope that the Indian entrepreneurs will continue to contribute effectively in our journey ahead to achieve this shared vision.”
BSC/BY/GN-350-09
--------------------------------------------------------------------------------
9 OCT 2009
Following is the Text of the speech of Finance Minister, Shri Pranab Mukherjee made at the annual function of ASSOCHAM, here today:
“It is my pleasure to be here today at the 88th annual function of ASSOCHAM. As a representative body of Indian industry and enterprise, ASSOCHAM has always been at the forefront of pursuing ideas that empower Indian entrepreneurs. It has contributed to building consensus on policy response to issues that impact growth of the economy. It has taken a lead in the dissemination of business knowledge that drives initiatives for market diversification and over all development. Indeed, I am happy to see that this engagement with the development process in the country is very much reflected in your theme for this year’s annual function, namely “Garland of Grids 2015: 10 per cent Growth through Universal Access”.
Let me start by placing the theme for this meeting against the backdrop of our recent development experience.
In a globalizing world, the challenges and opportunities of development, in general, and that of sustaining high growth over an extended period of time, in particular, have become more complex. The last two years have been a difficult period for the Indian economy which otherwise was experiencing an unprecedented spurt in its growth rate. We had to confront three major challenges originating in our external sector. First, a surge in capital inflows, which peaked in the last quarter of 2007-08. Second, an inflationary explosion in global commodity prices, which began even before the first challenge had ebbed, and hit us with great force in the middle of 2008. There was barely any time to deal with this problem before the third challenge, the global financial meltdown and collapse of international trade, hit the world with severity.
The resulting economic slowdown and recession in major developed economies adversely impacted growth in all parts of the world. It revealed critical gaps in international policy making and regulation, in risk management and international development cooperation. It also raised a number of questions on the process of international decision making and accountability that have a direct bearing on the global economic environment for the developing countries.
Most importantly, the crisis highlighted the fact that if we have to benefit from the ongoing process of globalization we have to have strong domestic economic foundations, an integrated and a coherent policy approach to protect and promote national interests. We have to deepen and broaden the domestic market so that we can ride the shocks and uncertainties of the global economy just as well as the periods of expansion and boom. This requires that we take a balanced broad based approach to our development process- an approach that is well captured by the idea of “garland of grids”.
I see the idea of national grids in diverse areas of human activity as a means to speed up the process of building a spatially evolved and regionally balanced Indian economy. It is a means to create an equitable access to resources for the people in all parts of the country, therby placing them on an equal footing.
A country of more than 1 billion persons cannot be led by growth in a few sectors or a few cities and regions of the country in a sustainable manner. With nearly two-third of the population still living in the rural areas it is important for the economy to reach out to these people and provide opportunities to them from the ongoing economic expansion at their door steps. This is essential not only for strengthening the inclusive character of the growth process, but also for anticipating and addressing the demographic issues associated with unplanned urbanization that the absence of a regionally balanced growth can potentially spark. I am not sure that everybody will agree if I say that the process of urbanization in India, by and large with the exception of a few mega cities, has been quite manageable so far, especially when one makes an international comparison with countries in the same stage of development as ours. However, it is important that we take every such step that will allow our economy to develop spatially and synergistically across different sectors of the economy to ensure the overall sustainability of the growth process and a quality of life that the ‘Aam Admi’ aspires for.
The present Government has a renewed mandate for reinforcing inclusive growth, for which the architecture was laid out by the present Government in its last term. It is a mandate for equitable development, where all legitimate aspirations of the people of India can be meaningfully realized.
In the last five years, the Gross Domestic Product of the Indian economy has grown at 8.5 per cent per annum, notwithstanding the significant dip in growth in 2008-09 on account of the global slowdown. We have succeeded in significantly raising the growth rate and sustaining the momentum of the economy to levels that are historically unprecedented. Underpinning this performance are a number of factors that will serve as sources of strength for the years ahead. Savings and investment rates have picked up; the industrial sector has demonstrated the capacity to compete with the best in the global economy; investors, domestic as well as international, have shown confidence in the evolving policy framework and the fundamentals of the economy; and there is steady expansion in domestic demand. Most importantly, the revenue buoyancy in the wake of this growth has come with a renewed public capacity to address the chronic problems of unemployment and poverty that have plagued our economy and the society.
All this gives us hope and courage to aim for a more ambitious growth path, which would give us the means to strengthen and building further the inclusive character of our economy.
We have to build and sustain an economy where the growing capabilities and rising aspirations of individuals can be matched with an expanding set of opportunities for people to enjoy. The economy should be able to support productive employment for all those who enter the labour force.
The ability to generate adequate employment opportunities will be a major factor on which the inclusiveness of the economic growth could be judged. The benefits of economic growth have to percolate down effectively to the most marginalized and vulnerable segments of the population. We need to not only bring down the incidence of poverty but bring it down quickly. There are a number of human development and socio-economic indicators that have to be improved significantly if we are too strengthen the inclusive aspect of our development process.
The present government in its last tenure has tried to bring in a paradigm shift for making the development process more inclusive. It involves creating entitlements backed by legal guarantee to improve access and provide basic amenities and opportunities for livelihood to vulnerable sections of our population. Thus, there are legal entitlements of information in the public domain, for work, education and now the Government is looking at the issue of food security as well.
In an era of rapid and broad based globalization our economy has to be integrated with the global economy to access the scarce resources, including technology, and markets if it has to become a developed nation where its people have the opportunity to realize their potential. For far too long in the past we have denied ourselves the possible benefits and opportunities that accrue from being a part of a larger growth process at the international level. We have set this right now and cannot afford to turn back. With our resources, especially the human resources and the demographic advantage that comes with having a younger population, we are uniquely placed at this juncture to make the 21st Century a truly Indian Century if we continue to build on our global linkages with our trade partners and potential markets. However, the recent global events have amply demonstrated that one has to be cautious in traversing this path.
For us, economic growth has to be an instrument for development and not an end in itself. It has to be not only inclusive but also equitable so as to sustain it over long period. In the last five years, we have moved steadfastly in that direction. It is my earnest hope that the Indian entrepreneurs will continue to contribute effectively in our journey ahead to achieve this shared vision.”
BSC/BY/GN-350-09
NEPAL- THE GLIMPSES OF HISTORY- BY ASHOK CHAURASIA
NEPAL: THE GLIMPSES OF HISTORY
By—ASHOK CHAURASIA
Indo-Nepal relation is historic one, age old and deep-rooted. Mithila King Raja Janak was the ruler of the region. Janakpur, the capital and birthplace of Mata Janaki (Sita), the virtuous queen of Lord Ram, is in Nepal. His Maithili subjects are the aborigines of the region. The main language of the region was Sanskrit. Till 1334 A.D. the modern capital of Mithila was Simraungarh and Hari Singh Dev was its ruler. Mughal ruler Gyasuddin attacked Simraungarh in the same year and destroyed the famous Pashupatinath temple. Hari Singh fled to Kathmandu valley and later on ruled the valley.
Similarly, as per mentioned in Mahabharat, Kirats the followers of Lord Shiva were the inhabitants in the valleys of the region. Yalambar was the first Kirati king. Matatirth was his capital. He finds a reference in Mahabharat too. It is said that he had met Indra - the Lord of heaven. The festival “Indra Yatra” is famous in Nepal. Perhaps, as per Nepal’s recorded history, Kirats arrived here in 7th or 8th century B.C. from the east. It is a matter of contradiction and extortion. Gopalas, the cow herder’s dynasty ruled the region prior to the Kirats. Nepal observes the grand festival of “Gai-Yatra”(cow-festival) too every year.
Perhaps the land is also the birthplace of lord Buddha; who born in 563 B.C. (mediaeval period) at Lumbini as the son of King Shudodhan who was the ruler of Kapilvastu, now a part of Nepal. Sidharth Gautam got enlightened at Gaya (Bihar) under a banyan tree. Buddha himself visited the holy places of Swayambhu and Guheswari, now in Nepal. The holy places of the region are of high importance. The places like Pashupatinath, Manokamna, Machendranath, Basukinath, Bodhnath, Kumari ghar etc are highly revered in Nepal. The prominent rivers of the region are Narayani, Koshi, Indrawati, Bagmati, Mahakali, Karnali etc. The highest mountain peak of the world, Sagarmatha (Mt.Everest) is situated in Nepal.
By 260B.C. the region was the part of Maurya Empire. Emperor, Ashok the Great visited Kathmandu and Lumbini. Here he erected four Stupas. He arranged his daughter Charumati’s marriage with Devpal, a local prince of Pashupati. Gupta dynasty also ruled the region for a long period.
Lord Pashupatinath is regarded as the guardian deity of Nepal and of the Hindu society as a whole. Licchavi King Supuspadev provided a big shape to the temple. There are several historical evidences that prove the Licchavi king’s ruled the Kathmandu valley for a long period (from slight before 1st till 12th century). During 8th to 11th century the southern part of the valley came under the occupation of Chalukya Empire of southern India and hence, from 876 B.C. Newari era began. Newar, supposed to be a clan of Karnataka. During this period lot of Buddhists from south India fled to Kathmandu valley. By 12th century, Thakuris alias Mallas (Rajputs of North India) emerged powerful in the valley. During Mall’s time the people of Kathmandu were known as Newars.
By the 14th century, Jayasthimall, a Newar King tried to unite the several principalities of the region which short-lived and in 1482 the territory split into three kingdoms: Kathmandu, Patan and Bhadgaon.
Prithvinarayan Shah (a prince of Sisodia clan of Chittor, Rajasthan) unified Nepal. Hence, he is regarded as the father of the modern Nepal. First he established a small principality of Gorkha (means-protector of cow); thereby conquering about more than 22 other princely states of the region, created modern Nepal. On 21st December 1768 he became the ruler of unified Nepal defeating Sen (Maithili) ruler of the valley and declared Nepal as the land of associate garden of 4 Verna (i.e. Brahman, Chatrya, Baisya and Sudra) and 36 castes. P.N.Shah was popularly known as Gorkha ruler, meaning, the cow protector and follower of Guru-Gorakhnath. Unfortunately, he banned the enrollment of Maithili and other Terai (Plain) people in his Nepal Army, as in 1774 Jay Prakash Mall attacked Kathmandu with 12000 strong Maithili troops (Tirhoot Army).
Eventually, Anglo-Nepal War (1814-16) broke out, in which Nepal suffered a complete rout. In exchange of Nepalese autonomy a treaty of Sugauli was singed between East India Company and Shah king in 1816. After 18th century Nepal plunged into internal turmoil. It was fueled by British under a divide and rule policy. This led to Kot Massacre in 1864; a bloody infighting between the Military personnel and Kings loyalists, in which Ranas executed several hundred princes and chieftains. Jung Bahadur Rana (Rajput clan of Mewar, Rajasthan) a fast rising military leader emerged victorious. He became the Prime Minister with all executive powers and the King was made titular. He founded Rana Dynasty and ruled Nepal till 1950 with the help of British government. Highly autocratic and centralized Rana regime not only isolated Nepal from its roots but also fully assisted the British in 1857; the first Indian Freedom Movement.
However, several renowned leaders of Nepal like Bisweshwar Prasad Koirala (founder of Nepali Congress), Matrika Prasad etc. joined Indian National Freedom Movement in 1920. Fearing the strong and fast spreading Indian National Movement, cleverly Britain seceded Nepal from India, in 1923. Perhaps, leaders like Subarn Samsher Rana, Ganesh Man Singh, Krishna Prasad Bhattarai and Girija Prasad Koirala joined Indian freedom movement and wanted to liberate Nepal from the autocratic and pro-British Rana regime as well as from imperialist British clutches. Ranas executed Dharm Bhakta Mathema, Shukraraj Shastri and Dashrath Chand while doing so. B.P.Koirala and Matrika Prasad were arrested, imprisoned in Bankipur jail in 1930. In jail they met Dr.Rajendra Prasad. Later on they were released in 1945.They also joined J.P.’s Socialist and Gandhi’s Quit India Movements. B.P. Koirala, the former Prime Minister of Nepal had clearly said-“Indian National Movement was also our movement because the autocracy of Ranas was supported by British Imperialists”. Regarding Ranas regime J.N.Nehru had said-“to hope reforms from the Ranas is like hoping the milk from a dry cow”. No doubt India sincerely supported the democratic movements in Nepal. And hence in January25, 1947 Nepali National Congress came into existence. Soon after Nepali Congress, came into existence the Communist Party of Nepal, supported by Russia and China.
In November 1950, King Tribhuvan, from his palace prison, managed to flee India. It is said that the King Tribhuvan had requested Pandit Nehru to merge Nepal into Indian union but Nehru ignored the request. India-Nepal singed the historic Peace and Friendship Treaty of 1950, here by India opened its vast resources to the citizens of Nepal. As per the treaty none of the Nepal’s citizen is regarded as foreigner in India and vice-versa. Ultimately, Rana regime came to an end in 1951 and once again the Shah dynasty rule was established under a simple constitutional monarchy system of government, a democratic government with powerful Prime Minister.
In 1956, Dr. K.I. Singh government banned teaching of Hindi. This led to a pro-Hindi and anti-Hindi movement in Nepal. The government of India remained unconcerned about the ban. Later on, in 1959 B.P. Koirala introduced Hindi in Madhes (foot hill of Nepal) but King Mahendra revoked it after a coup in 1962. He dismissed the elected government and took absolute powers in his own hand. This led to a sharp difference between India and king Mahendra. India was in favor of democracy but China supported the king. Taking advantage of Indo-Sino war of 1962 King floated one –state-one Language policy declaring Nepali as national and official language of Nepal at the suffering of other languages and completely banned Hindi in 1963. Prior to this, Hindi and Nepali both enjoyed an equal status as official and educational language of Nepal. Kashi was the base of Nepali publications. Hindi and Nepali have the same Devnagri script, same Sanskrit origin and a lot of similarities in words. There was never dispute in-between the two languages. Unfortunately King, under Chinese influence, tried to provoke and plant the anti-Hindi, anti-India feelings among the Nepali-speaking people of Nepal.
Whereas, according to Nepal’s 2001 national census, there are 92 different living languages in Nepal. The major languages of the state are Nepali-48%, Hindi-32% (Maithili-13%, Bhojpuri-8%, Tharu-4%, Urdu-4% Awadhi-2%, Bajjika-1%), Nepal Bhasa (Newari)-3%, Rai-3%, Tamang-3%, Limboo-2%, Magar-2%, Gurung-2%, Sherpa-1%. Today there is a strong demand for the equal status as Nepali to 11 other major languages. In last 6 decades Hindu and Buddhists are reduced to 81% and 11% respectively, where as Islam (4%) and Christianity (4%) have increased tremendously.
In 1969 Nepal cancelled an arm agreement with India and ordered India to withdraw its military mission from Kathmandu and listening posts from the Tibet-Nepal frontier. The Indo-Nepal relation does not improved during Birendra’s regime too; rather it deteriorated to its utmost level. During nineties he developed closer tie with China, as a result in 1989, the government of India led by Rajiv Gandhi closed Indo-Nepal border to all economic traffic. Though, after intervention of Bharatia Janata Party, Vishwa Hindu Parsad and Rastriya Swayamsevak Sangh the border was opened. Hindu organizations of India and Nepal tried hard to improve the bilateral relation of both the nations. King Birendra along with several political leaders of Nepal were invited in several functions organized by Vishwa Hindu Parisad.
Earlier in February 1963, M.S.Golwalkar,the then chief of Rashtriya Swayamsevak Sangh, while visiting Sri Pashupatinath temple, met the King Mahendra; both had discussions on several issues to improve the bilateral relations. Minister Dr.Tulsi Giri accompanied him. Sri Guruji (Golwalkar) on Febraury27, 1963; wrote to Pandit Nehru, the Indian Prime Minister, regarding the discussion urging him to take up necessary steps to improve the friendly relations and to clear the certain doubts of the king but Nehru did not paid any head to the request. In Febraury1965, on the auspicious eve of Makar Sankrati, Sangh invited The King Mahendra in its Nagpur function for which king had agreed, but Nehru government stopped him from taking part in the function. Though, today Hindu Organizations including Hindu Swayamsevak Sangh of Nepal is gaining strength in Nepal in spite of hurdles and odds. Know the people of Nepal, as a whole, seems getting aware of the foul play of evil elements like Maoists, Church, China, I.S.I., Islamic fundamentalists and certain vested leaders and media. Surprisingly, with the help of these elements, the Chinese influence, Christianity and Islam is also growing in Nepal.
It is said that- “ the loss of culture is the loss of identity and the loss of identity is the loss of nationality. So, these elements are trying hard to uproot Nepal from its glorious past, its culture, tradition and religion. And hence, they are attacking the Hindu identities of Nepal.
Unfortunately, on May18, 2006, under Maoist pressure, Nepal lost its glory of being the only Hindu Nation of the world and was declared secular. Since 1996, in 10 year long Maoists insurgency, more than 13000 people lost their life. Finally, Maoist elements do not even spared the Monarchs, loyal to them. On June1, 2001 his own son and crown prince Dipendra assassinated his father, the King Birendra along with all royal members of the family in the palace shooting-spree and so, on May 28,2008; 239 years old monarchy was abolished; Constituent Assembly declared Nepal, a Federal Democratic Republic. Sri Ram Varan Yadav was elected as the first President and Pushpa Kamal Dahal alias Prachand; the Maoist chief became the first Prime Minister of Nepal. Dictatorial Maoist govt. fall within a year and CPN (UML)- govt. led by Madhav Kumar Nepal, supported by Nepali Congress-Madhesies, and other 20 parties had formed the new govt. The biggest challenge before Nepal is to write its new constitution. Maoists are all posing the hurdles in constitution writing, as they wants such a constitution which suits them.
The modern history of Nepal clearly states that the ruling clans along with Brahmins, Chettris, Castes and Newars; today known as Nepali have come from Rajasthan,Kumaun,Garhwal, Kanaujj and Karnataka respectively. Maithilies and Kirats are the real son of the soil. Nepali language came into existence only in nineteenth century; prior to this there was Sanskrit, Nepalbhasa and Khas language.Later on the Khas language was termed as Nepali and declared as national language in 1963 by King Mahendra.
The name Nepal derived from the Sanskrit word “nipalaya”, which means ‘abode at the foothill’. It is also said that the name Nepal may have derived from the Sanskrit word ‘NEP’ meaning cow herder- the Gopalas, who came in the valley for the first time from the Ganges Plain. According to Nepali scholars, the ancient chronicles report that, a sage (Rishi) named Ne-muni existed in the valley. In Skandh Puran and Pashupati puran his name is mentioned. He became the protector (pala) of this land and the founder of its first ruling dynasty. The name of the country, Ne-pala, therefore originally meant the land protected by Ne. Till 20th century only Kathmandu valley was called as NEPAL.
Human teeth found in Butwal proved to be 10 lack years old, which proves the existence of Human being. Neolithic tools found in the Kathmandu valley are 9000 years old.
In Puranas, it is said that- “Himalayat samaramva, yavadendu sarowaram; tad dev nirmitam desham hindustham prachakshyatey”, meaning - the land stretched right from The Great Himalayas up to the ocean in south is the land created by the God himself. Rishi Aurobind has said – ‘the land is divinely designed triangle”. Nepali writers like Adi-kavi Bhanubhakta say–It is a rare thing to be born in Bharat Varsa and Maha-kavi Laxmi Prasad Devkota say-the history of Bharat Varsa is so sweet, nice and glorious.
by---Ashok Chaurasia
All India Secretary,
Nepali Sanskriti Parisad
All India Treasurer,
Rashtriya Sampadak Sangam
ADDRESS-
BHARAT PRAKASHAN (DELHI) LTD.
SANSKRITI BHAWAN,
JHANDEWALAN,
PAHARGANJ,
NEW DELHI 110055
Ph.09868419610
By—ASHOK CHAURASIA
Indo-Nepal relation is historic one, age old and deep-rooted. Mithila King Raja Janak was the ruler of the region. Janakpur, the capital and birthplace of Mata Janaki (Sita), the virtuous queen of Lord Ram, is in Nepal. His Maithili subjects are the aborigines of the region. The main language of the region was Sanskrit. Till 1334 A.D. the modern capital of Mithila was Simraungarh and Hari Singh Dev was its ruler. Mughal ruler Gyasuddin attacked Simraungarh in the same year and destroyed the famous Pashupatinath temple. Hari Singh fled to Kathmandu valley and later on ruled the valley.
Similarly, as per mentioned in Mahabharat, Kirats the followers of Lord Shiva were the inhabitants in the valleys of the region. Yalambar was the first Kirati king. Matatirth was his capital. He finds a reference in Mahabharat too. It is said that he had met Indra - the Lord of heaven. The festival “Indra Yatra” is famous in Nepal. Perhaps, as per Nepal’s recorded history, Kirats arrived here in 7th or 8th century B.C. from the east. It is a matter of contradiction and extortion. Gopalas, the cow herder’s dynasty ruled the region prior to the Kirats. Nepal observes the grand festival of “Gai-Yatra”(cow-festival) too every year.
Perhaps the land is also the birthplace of lord Buddha; who born in 563 B.C. (mediaeval period) at Lumbini as the son of King Shudodhan who was the ruler of Kapilvastu, now a part of Nepal. Sidharth Gautam got enlightened at Gaya (Bihar) under a banyan tree. Buddha himself visited the holy places of Swayambhu and Guheswari, now in Nepal. The holy places of the region are of high importance. The places like Pashupatinath, Manokamna, Machendranath, Basukinath, Bodhnath, Kumari ghar etc are highly revered in Nepal. The prominent rivers of the region are Narayani, Koshi, Indrawati, Bagmati, Mahakali, Karnali etc. The highest mountain peak of the world, Sagarmatha (Mt.Everest) is situated in Nepal.
By 260B.C. the region was the part of Maurya Empire. Emperor, Ashok the Great visited Kathmandu and Lumbini. Here he erected four Stupas. He arranged his daughter Charumati’s marriage with Devpal, a local prince of Pashupati. Gupta dynasty also ruled the region for a long period.
Lord Pashupatinath is regarded as the guardian deity of Nepal and of the Hindu society as a whole. Licchavi King Supuspadev provided a big shape to the temple. There are several historical evidences that prove the Licchavi king’s ruled the Kathmandu valley for a long period (from slight before 1st till 12th century). During 8th to 11th century the southern part of the valley came under the occupation of Chalukya Empire of southern India and hence, from 876 B.C. Newari era began. Newar, supposed to be a clan of Karnataka. During this period lot of Buddhists from south India fled to Kathmandu valley. By 12th century, Thakuris alias Mallas (Rajputs of North India) emerged powerful in the valley. During Mall’s time the people of Kathmandu were known as Newars.
By the 14th century, Jayasthimall, a Newar King tried to unite the several principalities of the region which short-lived and in 1482 the territory split into three kingdoms: Kathmandu, Patan and Bhadgaon.
Prithvinarayan Shah (a prince of Sisodia clan of Chittor, Rajasthan) unified Nepal. Hence, he is regarded as the father of the modern Nepal. First he established a small principality of Gorkha (means-protector of cow); thereby conquering about more than 22 other princely states of the region, created modern Nepal. On 21st December 1768 he became the ruler of unified Nepal defeating Sen (Maithili) ruler of the valley and declared Nepal as the land of associate garden of 4 Verna (i.e. Brahman, Chatrya, Baisya and Sudra) and 36 castes. P.N.Shah was popularly known as Gorkha ruler, meaning, the cow protector and follower of Guru-Gorakhnath. Unfortunately, he banned the enrollment of Maithili and other Terai (Plain) people in his Nepal Army, as in 1774 Jay Prakash Mall attacked Kathmandu with 12000 strong Maithili troops (Tirhoot Army).
Eventually, Anglo-Nepal War (1814-16) broke out, in which Nepal suffered a complete rout. In exchange of Nepalese autonomy a treaty of Sugauli was singed between East India Company and Shah king in 1816. After 18th century Nepal plunged into internal turmoil. It was fueled by British under a divide and rule policy. This led to Kot Massacre in 1864; a bloody infighting between the Military personnel and Kings loyalists, in which Ranas executed several hundred princes and chieftains. Jung Bahadur Rana (Rajput clan of Mewar, Rajasthan) a fast rising military leader emerged victorious. He became the Prime Minister with all executive powers and the King was made titular. He founded Rana Dynasty and ruled Nepal till 1950 with the help of British government. Highly autocratic and centralized Rana regime not only isolated Nepal from its roots but also fully assisted the British in 1857; the first Indian Freedom Movement.
However, several renowned leaders of Nepal like Bisweshwar Prasad Koirala (founder of Nepali Congress), Matrika Prasad etc. joined Indian National Freedom Movement in 1920. Fearing the strong and fast spreading Indian National Movement, cleverly Britain seceded Nepal from India, in 1923. Perhaps, leaders like Subarn Samsher Rana, Ganesh Man Singh, Krishna Prasad Bhattarai and Girija Prasad Koirala joined Indian freedom movement and wanted to liberate Nepal from the autocratic and pro-British Rana regime as well as from imperialist British clutches. Ranas executed Dharm Bhakta Mathema, Shukraraj Shastri and Dashrath Chand while doing so. B.P.Koirala and Matrika Prasad were arrested, imprisoned in Bankipur jail in 1930. In jail they met Dr.Rajendra Prasad. Later on they were released in 1945.They also joined J.P.’s Socialist and Gandhi’s Quit India Movements. B.P. Koirala, the former Prime Minister of Nepal had clearly said-“Indian National Movement was also our movement because the autocracy of Ranas was supported by British Imperialists”. Regarding Ranas regime J.N.Nehru had said-“to hope reforms from the Ranas is like hoping the milk from a dry cow”. No doubt India sincerely supported the democratic movements in Nepal. And hence in January25, 1947 Nepali National Congress came into existence. Soon after Nepali Congress, came into existence the Communist Party of Nepal, supported by Russia and China.
In November 1950, King Tribhuvan, from his palace prison, managed to flee India. It is said that the King Tribhuvan had requested Pandit Nehru to merge Nepal into Indian union but Nehru ignored the request. India-Nepal singed the historic Peace and Friendship Treaty of 1950, here by India opened its vast resources to the citizens of Nepal. As per the treaty none of the Nepal’s citizen is regarded as foreigner in India and vice-versa. Ultimately, Rana regime came to an end in 1951 and once again the Shah dynasty rule was established under a simple constitutional monarchy system of government, a democratic government with powerful Prime Minister.
In 1956, Dr. K.I. Singh government banned teaching of Hindi. This led to a pro-Hindi and anti-Hindi movement in Nepal. The government of India remained unconcerned about the ban. Later on, in 1959 B.P. Koirala introduced Hindi in Madhes (foot hill of Nepal) but King Mahendra revoked it after a coup in 1962. He dismissed the elected government and took absolute powers in his own hand. This led to a sharp difference between India and king Mahendra. India was in favor of democracy but China supported the king. Taking advantage of Indo-Sino war of 1962 King floated one –state-one Language policy declaring Nepali as national and official language of Nepal at the suffering of other languages and completely banned Hindi in 1963. Prior to this, Hindi and Nepali both enjoyed an equal status as official and educational language of Nepal. Kashi was the base of Nepali publications. Hindi and Nepali have the same Devnagri script, same Sanskrit origin and a lot of similarities in words. There was never dispute in-between the two languages. Unfortunately King, under Chinese influence, tried to provoke and plant the anti-Hindi, anti-India feelings among the Nepali-speaking people of Nepal.
Whereas, according to Nepal’s 2001 national census, there are 92 different living languages in Nepal. The major languages of the state are Nepali-48%, Hindi-32% (Maithili-13%, Bhojpuri-8%, Tharu-4%, Urdu-4% Awadhi-2%, Bajjika-1%), Nepal Bhasa (Newari)-3%, Rai-3%, Tamang-3%, Limboo-2%, Magar-2%, Gurung-2%, Sherpa-1%. Today there is a strong demand for the equal status as Nepali to 11 other major languages. In last 6 decades Hindu and Buddhists are reduced to 81% and 11% respectively, where as Islam (4%) and Christianity (4%) have increased tremendously.
In 1969 Nepal cancelled an arm agreement with India and ordered India to withdraw its military mission from Kathmandu and listening posts from the Tibet-Nepal frontier. The Indo-Nepal relation does not improved during Birendra’s regime too; rather it deteriorated to its utmost level. During nineties he developed closer tie with China, as a result in 1989, the government of India led by Rajiv Gandhi closed Indo-Nepal border to all economic traffic. Though, after intervention of Bharatia Janata Party, Vishwa Hindu Parsad and Rastriya Swayamsevak Sangh the border was opened. Hindu organizations of India and Nepal tried hard to improve the bilateral relation of both the nations. King Birendra along with several political leaders of Nepal were invited in several functions organized by Vishwa Hindu Parisad.
Earlier in February 1963, M.S.Golwalkar,the then chief of Rashtriya Swayamsevak Sangh, while visiting Sri Pashupatinath temple, met the King Mahendra; both had discussions on several issues to improve the bilateral relations. Minister Dr.Tulsi Giri accompanied him. Sri Guruji (Golwalkar) on Febraury27, 1963; wrote to Pandit Nehru, the Indian Prime Minister, regarding the discussion urging him to take up necessary steps to improve the friendly relations and to clear the certain doubts of the king but Nehru did not paid any head to the request. In Febraury1965, on the auspicious eve of Makar Sankrati, Sangh invited The King Mahendra in its Nagpur function for which king had agreed, but Nehru government stopped him from taking part in the function. Though, today Hindu Organizations including Hindu Swayamsevak Sangh of Nepal is gaining strength in Nepal in spite of hurdles and odds. Know the people of Nepal, as a whole, seems getting aware of the foul play of evil elements like Maoists, Church, China, I.S.I., Islamic fundamentalists and certain vested leaders and media. Surprisingly, with the help of these elements, the Chinese influence, Christianity and Islam is also growing in Nepal.
It is said that- “ the loss of culture is the loss of identity and the loss of identity is the loss of nationality. So, these elements are trying hard to uproot Nepal from its glorious past, its culture, tradition and religion. And hence, they are attacking the Hindu identities of Nepal.
Unfortunately, on May18, 2006, under Maoist pressure, Nepal lost its glory of being the only Hindu Nation of the world and was declared secular. Since 1996, in 10 year long Maoists insurgency, more than 13000 people lost their life. Finally, Maoist elements do not even spared the Monarchs, loyal to them. On June1, 2001 his own son and crown prince Dipendra assassinated his father, the King Birendra along with all royal members of the family in the palace shooting-spree and so, on May 28,2008; 239 years old monarchy was abolished; Constituent Assembly declared Nepal, a Federal Democratic Republic. Sri Ram Varan Yadav was elected as the first President and Pushpa Kamal Dahal alias Prachand; the Maoist chief became the first Prime Minister of Nepal. Dictatorial Maoist govt. fall within a year and CPN (UML)- govt. led by Madhav Kumar Nepal, supported by Nepali Congress-Madhesies, and other 20 parties had formed the new govt. The biggest challenge before Nepal is to write its new constitution. Maoists are all posing the hurdles in constitution writing, as they wants such a constitution which suits them.
The modern history of Nepal clearly states that the ruling clans along with Brahmins, Chettris, Castes and Newars; today known as Nepali have come from Rajasthan,Kumaun,Garhwal, Kanaujj and Karnataka respectively. Maithilies and Kirats are the real son of the soil. Nepali language came into existence only in nineteenth century; prior to this there was Sanskrit, Nepalbhasa and Khas language.Later on the Khas language was termed as Nepali and declared as national language in 1963 by King Mahendra.
The name Nepal derived from the Sanskrit word “nipalaya”, which means ‘abode at the foothill’. It is also said that the name Nepal may have derived from the Sanskrit word ‘NEP’ meaning cow herder- the Gopalas, who came in the valley for the first time from the Ganges Plain. According to Nepali scholars, the ancient chronicles report that, a sage (Rishi) named Ne-muni existed in the valley. In Skandh Puran and Pashupati puran his name is mentioned. He became the protector (pala) of this land and the founder of its first ruling dynasty. The name of the country, Ne-pala, therefore originally meant the land protected by Ne. Till 20th century only Kathmandu valley was called as NEPAL.
Human teeth found in Butwal proved to be 10 lack years old, which proves the existence of Human being. Neolithic tools found in the Kathmandu valley are 9000 years old.
In Puranas, it is said that- “Himalayat samaramva, yavadendu sarowaram; tad dev nirmitam desham hindustham prachakshyatey”, meaning - the land stretched right from The Great Himalayas up to the ocean in south is the land created by the God himself. Rishi Aurobind has said – ‘the land is divinely designed triangle”. Nepali writers like Adi-kavi Bhanubhakta say–It is a rare thing to be born in Bharat Varsa and Maha-kavi Laxmi Prasad Devkota say-the history of Bharat Varsa is so sweet, nice and glorious.
by---Ashok Chaurasia
All India Secretary,
Nepali Sanskriti Parisad
All India Treasurer,
Rashtriya Sampadak Sangam
ADDRESS-
BHARAT PRAKASHAN (DELHI) LTD.
SANSKRITI BHAWAN,
JHANDEWALAN,
PAHARGANJ,
NEW DELHI 110055
Ph.09868419610
All Sikkim Self Help Group Exhibition
Gangtok,October07 :
Sikkim Rural Development Agency (SRDA) under the Rural Management and Development Department (RMDD), Govt. of Sikkim, has organized an Exhibition-cum-Sales of products by All Sikkim Self Help Group (SHG) which was inaugurated on Tuesday at old children park to continue till 15th October.
C B Karki, Minister RMDD was chief guest at the inauguration. Dorjee Namgyal, MLA, Gangtok, Phituk Tshering, Sangha MLA, former Minister Somnath Poudyal, Anil Ganerwala, Secretary, RMDD, among others, were present.
Total 42 stalls of handloom and handicraft, food, vegetable items from all over Sikkim are displaying their products. Mr. Karki said, the aim of the programme is to enable the local youth to be self sustained by giing them the idea of marketing the products. Since the formation of SDF government, emphasis is being given on facilities for the rural people, he said. “State government is giving capacity building training to all educated unemployed youth whereby number of SHGs has increased”, he said. He added, “The aim of the government is to develop the SHG from State level to National Level”.
Gangtok,October07 :
Sikkim Rural Development Agency (SRDA) under the Rural Management and Development Department (RMDD), Govt. of Sikkim, has organized an Exhibition-cum-Sales of products by All Sikkim Self Help Group (SHG) which was inaugurated on Tuesday at old children park to continue till 15th October.
C B Karki, Minister RMDD was chief guest at the inauguration. Dorjee Namgyal, MLA, Gangtok, Phituk Tshering, Sangha MLA, former Minister Somnath Poudyal, Anil Ganerwala, Secretary, RMDD, among others, were present.
Total 42 stalls of handloom and handicraft, food, vegetable items from all over Sikkim are displaying their products. Mr. Karki said, the aim of the programme is to enable the local youth to be self sustained by giing them the idea of marketing the products. Since the formation of SDF government, emphasis is being given on facilities for the rural people, he said. “State government is giving capacity building training to all educated unemployed youth whereby number of SHGs has increased”, he said. He added, “The aim of the government is to develop the SHG from State level to National Level”.
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