Tuesday, July 5, 2011
Sunday, June 19, 2011
Sunday, July 12, 2009
Of smart cards and smarter operators
Recently some political parties in India raised concerns about the Electronic Voting Machines used in elections as being susceptible to manipulation and have demanded a return to ballot paper based voting in the forthcoming elections in the states of Maharashtra and Haryana. Incidentally this development has come on the heels of the decision of the Government to issue smart cards to every citizens with the aim of ensuring that the benefits of social programs reach the deserving people by weeding out corruption. The bill - a tidy sum of Rs 15 bn +, with its usual overruns.
So what’s the problem . None, except that it is doubtful whether the meant objectives will be achieved. For, its predecessors in a variety of avtars have failed. This calls for a bit of explanation. The first such approach was with issuing Voters Identity Cards around the beginning of this decade. The entire process was digitized capturing relevant data in digital form including a photograph. A person was required to identify oneself with such an identity card before being allowed to vote. This was intended to prevent bogus votes to ensure a fair election. But even after about a decade , the intended objective of preventing bogus voting is still not met. Anomalies exist in various forms . Disturbances on polling days in most parts of the country bear ample testimony to this as also the demands for repolling in some booths which are not uncommon in any election.
Then there is the Permanent Account Number card or the PAN card. This is a card for having an account number with Income Tax department. This number is supposed to be permanent and hence the name, though tax liability may not be permanent as incomes might vary. Quoting the PAN was made mandatory for most financial transactions. This included all transactions in stock markets. Property dealings, credit card purchases and cash transactions beyond a specified limit requires quoting of PAN . This it was expected would leave an audit trail of various transactions and thereby prevent tax avoidance and trace money laundering. Such was the stature of the PAN card that it soon began to be treated as adequate proof of identity. But sadly the much fancied PAN card has been meted perhaps the worst of humiliations. Rampant issue of multiple cards to a single individual or are they ghost cards really, have come to light making a mockery of catching tax evasion. Instances have surfaced where a single individual could pocket refunds several times using multiple accounts. That government decided to go for another identification number, to be issued by sources who deduct tax before making payment, to combat multiple refund claims of tax deducted at source TDS that is, indicates that this is indeed a menace.
Another smart card which has assumed equal importance as an identifier is the driving license. This too has been subjected to equally rampant dilution. The ease with which a driving license can be obtained anywhere in the country is shocking to note. Yet lives of millions people continue to depend on novices who masquerade as professional drivers.
Other Governmental efforts in the past included issuing Ration cards. The idea was that people with cards issued on the basis of economic criteria could get access to discounted foodgrain from Government controlled fair price shops. It turned out that there were not enough foodgrain with Government for distribution through these shops. So the criteria had to be made stiffer so that only the needy could get the benefit and Ration cards were made of two categories. One is Below Poverty Level, BPL category that is. The other of course is the Above Poverty Level category. The truth is that there has been no improvement in the availability of cheaper food grain to the poor.
Therefore if the past record is anything to go by, there is a likelihood of the present project meeting the same fate. We will end up with another card stuffed in our cardholder and a sum of Rs 15 bn + gone .
Coming to the broader point, what identity, whose identity are we seeking. What data are we contemplating to sift through computers. Its there for anyone who cares to see. The telltale signs of malnutrition , deprivation and neglect. What does identity mean to someone who's roof is the open sky and who is likely to die without any medical treatment. What does fingerprints and iris scans mean to those who's preoccupation is to worry about where the next meal would come from. Not that they do not have an identity. They have one and it can't be faked. It might read something like this
species : homosapiens
build : undernourished
hairs : disheveled
eyes : tearful
body : unclean
education : illiterate
occupation : seeking alms
age : still in growth phase
All of Government's plans for the country's socio economic upliftment though well meaning have failed to produce desired results due to the absolute inaction at the implementation level. Here there is a strong need for establishing accountability criteria, stringent monitoring system and strict adherence to targets. India has world class project implementation capability in the private sector. No reason why Government projects should fail to deliver desired results. If money is committed for a project then Government must also ensure that the end benefits are realised .
This time around at least the Government is willing to bet. It has drawn up talent from the private sector - Mr Nandan Nilekani of Infosys repute - and gave him ministerial status. We can only hope he and his team will be able to make his smart card outsmart the adversity. And of course we wish him all the luck.
So what’s the problem . None, except that it is doubtful whether the meant objectives will be achieved. For, its predecessors in a variety of avtars have failed. This calls for a bit of explanation. The first such approach was with issuing Voters Identity Cards around the beginning of this decade. The entire process was digitized capturing relevant data in digital form including a photograph. A person was required to identify oneself with such an identity card before being allowed to vote. This was intended to prevent bogus votes to ensure a fair election. But even after about a decade , the intended objective of preventing bogus voting is still not met. Anomalies exist in various forms . Disturbances on polling days in most parts of the country bear ample testimony to this as also the demands for repolling in some booths which are not uncommon in any election.
Then there is the Permanent Account Number card or the PAN card. This is a card for having an account number with Income Tax department. This number is supposed to be permanent and hence the name, though tax liability may not be permanent as incomes might vary. Quoting the PAN was made mandatory for most financial transactions. This included all transactions in stock markets. Property dealings, credit card purchases and cash transactions beyond a specified limit requires quoting of PAN . This it was expected would leave an audit trail of various transactions and thereby prevent tax avoidance and trace money laundering. Such was the stature of the PAN card that it soon began to be treated as adequate proof of identity. But sadly the much fancied PAN card has been meted perhaps the worst of humiliations. Rampant issue of multiple cards to a single individual or are they ghost cards really, have come to light making a mockery of catching tax evasion. Instances have surfaced where a single individual could pocket refunds several times using multiple accounts. That government decided to go for another identification number, to be issued by sources who deduct tax before making payment, to combat multiple refund claims of tax deducted at source TDS that is, indicates that this is indeed a menace.
Another smart card which has assumed equal importance as an identifier is the driving license. This too has been subjected to equally rampant dilution. The ease with which a driving license can be obtained anywhere in the country is shocking to note. Yet lives of millions people continue to depend on novices who masquerade as professional drivers.
Other Governmental efforts in the past included issuing Ration cards. The idea was that people with cards issued on the basis of economic criteria could get access to discounted foodgrain from Government controlled fair price shops. It turned out that there were not enough foodgrain with Government for distribution through these shops. So the criteria had to be made stiffer so that only the needy could get the benefit and Ration cards were made of two categories. One is Below Poverty Level, BPL category that is. The other of course is the Above Poverty Level category. The truth is that there has been no improvement in the availability of cheaper food grain to the poor.
Therefore if the past record is anything to go by, there is a likelihood of the present project meeting the same fate. We will end up with another card stuffed in our cardholder and a sum of Rs 15 bn + gone .
Coming to the broader point, what identity, whose identity are we seeking. What data are we contemplating to sift through computers. Its there for anyone who cares to see. The telltale signs of malnutrition , deprivation and neglect. What does identity mean to someone who's roof is the open sky and who is likely to die without any medical treatment. What does fingerprints and iris scans mean to those who's preoccupation is to worry about where the next meal would come from. Not that they do not have an identity. They have one and it can't be faked. It might read something like this
species : homosapiens
build : undernourished
hairs : disheveled
eyes : tearful
body : unclean
education : illiterate
occupation : seeking alms
age : still in growth phase
All of Government's plans for the country's socio economic upliftment though well meaning have failed to produce desired results due to the absolute inaction at the implementation level. Here there is a strong need for establishing accountability criteria, stringent monitoring system and strict adherence to targets. India has world class project implementation capability in the private sector. No reason why Government projects should fail to deliver desired results. If money is committed for a project then Government must also ensure that the end benefits are realised .
This time around at least the Government is willing to bet. It has drawn up talent from the private sector - Mr Nandan Nilekani of Infosys repute - and gave him ministerial status. We can only hope he and his team will be able to make his smart card outsmart the adversity. And of course we wish him all the luck.
Sunday, May 24, 2009
Jai Ho it is, for the Indian voter
The results of the recent elections to India's parliament left in it's wake a massive euphoria reminiscent of the times in the past when the mandate given resulted in absolute majority to the incumbent party. But the possibility of the congress party, which does not have even a simple majority of its own, forming a Government cobbling together an alliance with other parties is rejoiced by not only the entire nation but also the whole world.
Perhaps there are reasons to cheer. The previous 5 years and also periods in the past has shown how not to progress under a coalition arrangement. The pulls and pressures of the constituents were just too much for any right thinking ruling party. This was glaring during the previous govt's term where we saw such things as 'support from outside', issue based support etc. It is strange that such concepts gained currency and stayed in place for full five years. We saw how the left parties were able to have a stranglehold over the Govt and dictated terms. People were fed up of such coalition politics. They therefore took their decision at the hustings and when the incumbent party did shed all that baggage and the crutch they became very happy naturally.
Perhaps people were convinced that the previous Govt has performed well enough with all the handicaps that it had. Farm loan waiver, free electricity and other rural programs has gone very well with the people and that there are very strong hopes that such programs will get even greater fillip with the new Govt.
People are hoping that the incumbent dispensation will provide a stable governance
which is very necessary for economic upliftment. The Congress party with its allies is far more preferable, beyond doubt, than the rag tag coalition of third front. The leaders trying to stitch a third front alliance seem to be having infinite faith in their belief that such an alternative would ultimately get ahead of the national parties. They would have gained more had they concentrated more on winning the faith of people.
To the world a congress led Govt will be welcome. Particularly after its achievement in negotiating the nuclear deal. This govt is known to be pro reform notwithstanding its socialist leanings. This will foster a climate for greater inflow of foreign funds which in turn will contribute to higher growth.
The major opposition the BJP and its allies are in disarray having suffered a big setback. It itself is to be blamed for its poor performance. Its campaign lacked clarity and voters were not impressed with the issues . Internal conflicts took its toll as also its poor track record in terms of an effective and worthwhile opposition in the parliament. In a functioning democracy the role of opposition cannot be overemphasized. It must therefore strive to become a worthy opposition in the parliament .
The Prime Minister in the meantime has made a good beginning with the selection of ministers, in that, non performers have been shown the door. Let us hope the good work continues.
Perhaps there are reasons to cheer. The previous 5 years and also periods in the past has shown how not to progress under a coalition arrangement. The pulls and pressures of the constituents were just too much for any right thinking ruling party. This was glaring during the previous govt's term where we saw such things as 'support from outside', issue based support etc. It is strange that such concepts gained currency and stayed in place for full five years. We saw how the left parties were able to have a stranglehold over the Govt and dictated terms. People were fed up of such coalition politics. They therefore took their decision at the hustings and when the incumbent party did shed all that baggage and the crutch they became very happy naturally.
Perhaps people were convinced that the previous Govt has performed well enough with all the handicaps that it had. Farm loan waiver, free electricity and other rural programs has gone very well with the people and that there are very strong hopes that such programs will get even greater fillip with the new Govt.
People are hoping that the incumbent dispensation will provide a stable governance
which is very necessary for economic upliftment. The Congress party with its allies is far more preferable, beyond doubt, than the rag tag coalition of third front. The leaders trying to stitch a third front alliance seem to be having infinite faith in their belief that such an alternative would ultimately get ahead of the national parties. They would have gained more had they concentrated more on winning the faith of people.
To the world a congress led Govt will be welcome. Particularly after its achievement in negotiating the nuclear deal. This govt is known to be pro reform notwithstanding its socialist leanings. This will foster a climate for greater inflow of foreign funds which in turn will contribute to higher growth.
The major opposition the BJP and its allies are in disarray having suffered a big setback. It itself is to be blamed for its poor performance. Its campaign lacked clarity and voters were not impressed with the issues . Internal conflicts took its toll as also its poor track record in terms of an effective and worthwhile opposition in the parliament. In a functioning democracy the role of opposition cannot be overemphasized. It must therefore strive to become a worthy opposition in the parliament .
The Prime Minister in the meantime has made a good beginning with the selection of ministers, in that, non performers have been shown the door. Let us hope the good work continues.
Tuesday, April 28, 2009
guest post
I received a mail from one of my friends which I reproduce in full
"quote"
Its challenges are immense, more so probably than anywhere else particularly in development and fending off terrirism - but considering these challenges and its neighbours, it is even more astounding that the most diverse nation on Earth , with hundreds of languages, all religions and cultures, is not only surviving but thriving.
The nation where Hinduism, Budhism, Jainism and Sikhism were born, which is the second largest Muslim nation on Earth; where Christianity has existed for 2000 years ; where the oldest Jewish synagogues and Jewish communities have resided since the Romans burnt their 2nd temple; where Dalai Lama and the Tibetan government in exile reside; where the Zorastrians from Persia have thrived since being thrown out of their ancient home land ; where Armenians and Syrians and many otheres have come to live;where the paris based OECD said was the largest economy on Earth 1500 of the last 2000 years, including the 2nd largest only 200 years ago; where 3 Muslim Presidents have been elected, where a Sikh is Prime Minister and the head of the ruling party a Catholic Italian woman, where the president is also a woman, succeeding a Muslim President who as rocket scientist was a hero in the nation; where a booming economy is lifting 40 million out of poverty each year and is expected to have the majority of it's population in the middle class, already equal to the entire US population, by 2025; where its optimism and vibrancy is manifested in its movies, arts, economic growth and voting, despite all the incredible challenges and hardships; where all the great powers are vying for influence as it itself finds its place in the world.
Where all of this is happening, is India and as greater than 1/10 of humanity gets ready to vote, it is an inspiration to all the world.
"unquote"
Amazing. No other nation can boast of such diversity. Perhaps it is our spiritual enlightment that has given us our exemplary tolerance . No wonder then the world looks to us for spiritual leadership. The readers comment as given above puts us on a high pedestal indeed. Comment on China however is debatable. China now is neither destabilising nor violent. It is now continuing to record the highest economic growth and is also a donor to IMF
"quote"
Sometimes we underestimate ourselves. It takes a foreigner to put into perspective what a great people we really are and our tremendous achievement in the face of what appear to be insurmountable odds. Let us hope we can continue to remain the peaceful and tolerant people we have been through history. When fanaticism and fundamentalism rear their ugly heads in our country we must realise that they are the exception and not the rule. If we stop to compare ourseleves with our neighbours and the rising intolerance and xenophobia in even developed nations we should be truly grateful to be living in India .....
BalaNew York Times reader comment on India going to polls, "The world's biggest exercise in democracy"
April 15 2009 it is truly the gereatest show on Earth, an ode to a diverse and democratic ethoes , where 700 million + of humanity vote, providing providing their small part in directing their ancient civilisation into the future. It is no less impressive when done in a neighbourhood which includes de-stabilising and violent Pakistan, China and Burma.Its challenges are immense, more so probably than anywhere else particularly in development and fending off terrirism - but considering these challenges and its neighbours, it is even more astounding that the most diverse nation on Earth , with hundreds of languages, all religions and cultures, is not only surviving but thriving.
The nation where Hinduism, Budhism, Jainism and Sikhism were born, which is the second largest Muslim nation on Earth; where Christianity has existed for 2000 years ; where the oldest Jewish synagogues and Jewish communities have resided since the Romans burnt their 2nd temple; where Dalai Lama and the Tibetan government in exile reside; where the Zorastrians from Persia have thrived since being thrown out of their ancient home land ; where Armenians and Syrians and many otheres have come to live;where the paris based OECD said was the largest economy on Earth 1500 of the last 2000 years, including the 2nd largest only 200 years ago; where 3 Muslim Presidents have been elected, where a Sikh is Prime Minister and the head of the ruling party a Catholic Italian woman, where the president is also a woman, succeeding a Muslim President who as rocket scientist was a hero in the nation; where a booming economy is lifting 40 million out of poverty each year and is expected to have the majority of it's population in the middle class, already equal to the entire US population, by 2025; where its optimism and vibrancy is manifested in its movies, arts, economic growth and voting, despite all the incredible challenges and hardships; where all the great powers are vying for influence as it itself finds its place in the world.
Where all of this is happening, is India and as greater than 1/10 of humanity gets ready to vote, it is an inspiration to all the world.
"unquote"
Amazing. No other nation can boast of such diversity. Perhaps it is our spiritual enlightment that has given us our exemplary tolerance . No wonder then the world looks to us for spiritual leadership. The readers comment as given above puts us on a high pedestal indeed. Comment on China however is debatable. China now is neither destabilising nor violent. It is now continuing to record the highest economic growth and is also a donor to IMF
Tuesday, April 14, 2009
Curtains to Satyam episode
With the announcement of the successful bidder for scam hit Satyam Computers the collective sigh of relief must have been felt all over the globe. Here was a major international outsourcer almost on the throes of being vaporized into thin air lock stock and barrel. And yet Monday the announcement came that indeed there was a taker for Satyam. This is flabbergasting for it really required nerves to take a call on Satyam. It was like taking a shot blindfolded. The extent of class action suits abroad, the absence of a dependable balance sheet on which to base decisions particularly in terms of unknown liabilities, the mood of the clients notably the large ones and the merit of the need for the buyer to get to the bottom are sufficient reasons to deter any prospective investor from putting money. And in the beginning it looked as if the company was destined to go down under. That this did not happen speaks volumes of our ability to deal with a crisis. Prompt, decisive and purposeful actions by all concerned viz the Govt , the company law board and regulatory institutions not only helped bring about a quick solution but also did not leave any scope for criticism.
Not to be left behind is our entrepreneurship . It is said fortune favours the brave. Tech Mahindra , the successful bidder has been brave in putting its sight on Satyam. And who knows Satyam may turn out to be a fortune for Tech Mahindra. The benefits are immense. In one go Tech Mahindra has positioned itself into the major league along with the Infosyses and TCSs of the world. Instead of remaining confined to only telecom (BT which accounts for bulk of its buisiness) it now has other verticals such as financial services, manufacturing , healthcare and others. Tech Mahindra's client base has now taken a quantum leap and it can boast of such names as GE, Cisco, GM and Citi . And of course it now has nearly 48000 additional talent to tap into.
Will Tech Mahindra be able to put Satyam back on track or even increase its revenue and most importantly expand the margins. It should be possible. Mahindras are a successful business group with proven track record. Tech Mahindra's top management has talent required to build businesses . Besides the much talked about 3% margin might turn out to be not so big a dampener. Most software export companies have an operating profit margin of anything around 25-30 %. Therefore when Satyam gets back on cruise mode again after everything has been set in order it should be able to generate the prevalent margins. And this will be the bonanza that Tech Mahendra can strive for.
There is no doubt that the present valuation of Satyam is the result of the sad state of affairs that it had to go through in the past. And now that there is a new beginning and as someone said "A new star is born " fortune may indeed favour Tech Mahindra since the price it has paid at Rs 58 a share might turn out to be a fantastic bargain.
Not to be left behind is our entrepreneurship . It is said fortune favours the brave. Tech Mahindra , the successful bidder has been brave in putting its sight on Satyam. And who knows Satyam may turn out to be a fortune for Tech Mahindra. The benefits are immense. In one go Tech Mahindra has positioned itself into the major league along with the Infosyses and TCSs of the world. Instead of remaining confined to only telecom (BT which accounts for bulk of its buisiness) it now has other verticals such as financial services, manufacturing , healthcare and others. Tech Mahindra's client base has now taken a quantum leap and it can boast of such names as GE, Cisco, GM and Citi . And of course it now has nearly 48000 additional talent to tap into.
Will Tech Mahindra be able to put Satyam back on track or even increase its revenue and most importantly expand the margins. It should be possible. Mahindras are a successful business group with proven track record. Tech Mahindra's top management has talent required to build businesses . Besides the much talked about 3% margin might turn out to be not so big a dampener. Most software export companies have an operating profit margin of anything around 25-30 %. Therefore when Satyam gets back on cruise mode again after everything has been set in order it should be able to generate the prevalent margins. And this will be the bonanza that Tech Mahendra can strive for.
There is no doubt that the present valuation of Satyam is the result of the sad state of affairs that it had to go through in the past. And now that there is a new beginning and as someone said "A new star is born " fortune may indeed favour Tech Mahindra since the price it has paid at Rs 58 a share might turn out to be a fantastic bargain.
Tuesday, April 7, 2009
Price of Tata Motor's nano
By the time bookings for the nano car were announced by Tata Motor its price had already exceeded the sensational 1 lakh tag by as much as 27-28% , though the first 1 lakh cars will be be available to the public at Rs 1 lakh only. Thereafter it will be sold at the prevailing price.
But there is one more aspect to the price situation. Bharat Stage IV is slated to be made applicable from 1st April 2010 in 11 cities which are NCR, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru Ahmedabad , Pune, Surat, Kanpur and Agra . As per the dealer leaflet available at he company's website http://www.tatanano.com/ ,the car’s emission norms are in accordance with Bharat Stage III standards. Though however advertisements by the compay are mentioning CO2 levels of 101 g/km. While the fuel efficiency achieved by the car certainly is indicative of the car's improved CO2 emission , the figure claimed by the company is way better than the current European 2012 target of average emission of 120 gm/km.
But CO2 emission is not the only only parameter in emission standards. There are other non - CO2 emissions. These are Nitrogen Oxide (NOx) , Hydrocarbon (HC),
Carbon monoxide (CO) and in the case of diesel cars an additional parameter Particulate matter.
Now when BS IV for the 11 cities are made applicable from 1st April 2010 as has been slated, all manufacturers will have to incorporate the improved standards. This will naturally increase the cost of manufacture. Maruti has already announced that it will stop manufacture of its legendary Maruti 800 by 2016 when BS IV will be applicable for the entire country, as modifying it to conform to the improved standards will not be a cost effective solution. Of course Maruti 800 is of old design and upgrading it to conform to BS IV standards is a daunting task. In comparison Tata's Nano is definitely of latest and innovative design. Whether such cost will be marginal for Tata Motors is to be seen. Also completing the upgrade will require some time and incidentally the scheduled date is not far. So if there are no extensions to the deadline of implementing BS IV or if nano car is exempted considering its small engine size, people after booking the car, might end up waiting for the delivery. And who knows where the commodity prices will be then. At any rate, the myth called a Rs. 1 Lakh people's car stands vindicated.
But there is one more aspect to the price situation. Bharat Stage IV is slated to be made applicable from 1st April 2010 in 11 cities which are NCR, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru Ahmedabad , Pune, Surat, Kanpur and Agra . As per the dealer leaflet available at he company's website http://www.tatanano.com/ ,the car’s emission norms are in accordance with Bharat Stage III standards. Though however advertisements by the compay are mentioning CO2 levels of 101 g/km. While the fuel efficiency achieved by the car certainly is indicative of the car's improved CO2 emission , the figure claimed by the company is way better than the current European 2012 target of average emission of 120 gm/km.
But CO2 emission is not the only only parameter in emission standards. There are other non - CO2 emissions. These are Nitrogen Oxide (NOx) , Hydrocarbon (HC),
Carbon monoxide (CO) and in the case of diesel cars an additional parameter Particulate matter.
Now when BS IV for the 11 cities are made applicable from 1st April 2010 as has been slated, all manufacturers will have to incorporate the improved standards. This will naturally increase the cost of manufacture. Maruti has already announced that it will stop manufacture of its legendary Maruti 800 by 2016 when BS IV will be applicable for the entire country, as modifying it to conform to the improved standards will not be a cost effective solution. Of course Maruti 800 is of old design and upgrading it to conform to BS IV standards is a daunting task. In comparison Tata's Nano is definitely of latest and innovative design. Whether such cost will be marginal for Tata Motors is to be seen. Also completing the upgrade will require some time and incidentally the scheduled date is not far. So if there are no extensions to the deadline of implementing BS IV or if nano car is exempted considering its small engine size, people after booking the car, might end up waiting for the delivery. And who knows where the commodity prices will be then. At any rate, the myth called a Rs. 1 Lakh people's car stands vindicated.
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