Page 1

MG DEVASAHAYAM: SAGARMALA PROJECT, A SAGA OF CORPORATE GREED p30

KARAN KHARB: INDIA NEEDS TO GRAB BELT ROAD OPPORTUNITY p50

April 2018 ` VOL. 12, ISSUE 1

gfilesindia.com

Adieu , AIR INDIA ISSN SSN 0976-2906

M P PA GO T V CH EL A ERN OU DD OR HA S T A N p3 N’S O S AN 6 W HIV DIB OE R E S AJ N

An airline built by people’s blood, sweat, and money is be being sold for a song. There are smarter ways to do so

1


ind

c

ia.

ind

m

co

co

m

m

.co

m

.co

om

www.indianbuzz.com

ia.

ind

ia.

ind

dia

in ia m ind .co a i m o ind .c

dia 2

gfiles inside the government vol. 7, issue 5 | August 2013

19


From the Editor

W

vol. 12, ISSUE 1 | APRIL 2018 Anil Tyagi | editor GS Sood | business editor Sheshadri Chari | roving editor Alam Srinivas | contributing editor Anish Gandhi | consultant, foreign affairs Narendra Kaushik | associate editor Rakesh Bhardwaj | editorial consultant Ramesh Sharma | bureau chief (north india) Ajit Ujjainkar | bureau chief (mumbai) Durvesh Singh | bureau chief (Lucknow) Mayank Awasthi | sub editor Pawan Kumar | production coordinator Nipun Jain | finance Gautam Das | legal consultant Bushchat Media | edit & design Madan Lal | webmaster Abhisshek Tyagi | director advertising & marketing $1,/622' | 9,&(35(6,'(170$5.(7,1* +919811639632 36685$/ | 9,&(35(6,'(170$5.(7,1* +919873243950 e-mail: asps@gfilesindia.com delhi: e-mail: adv@gfilesindia.com mumbai: 48/C-1, Areshwar, Mhada, S.V.P. Nagar, Andheri(W), Mumbai 400 053 Chandigarh: SCO 5- First Floor, Zirakpur-Shimla Highway, Zirakpur, District Mohali Punjab CONTACT â&#x20AC;&#x201D; 0172-509368 e-mail: rameshsharmaemail@gmail.com kolkata: 1,/2</$+,5, +919830071652 ranchi: 0$1,1'(5.80$56,1+$ +917461999985 $1,/7<$*,35,17(5 38%/,6+(5 QGIORRUGGDVLWH QHZUDMLQGHUQDJDUQHZGHOKLÄ&#x192; +All information in gfiles is obtained from sources that the management considers reliable, and is disseminated to readers without any responsibility on our part. Any opinions or views on any contemporary or past topics, issues or developments expressed by third parties, whether in abstract or in interviews, are not necessarily shared by us. Copyright exclusively with Sarvashrestha Media Pvt. Ltd. All rights reserved throughout the world. Reproduction of any material of this magazine in whole, or in part(s), in any manner, without prior permission, is totally prohibited. The publisher accepts no responsibility for any material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with any advertisement without explanation. All advertisements must comply with the Indian Advertisements Code. Published and printed by Anil Tyagi on behalf of Sarvashrestha Media Pvt. Ltd at Polykam Offset, C-138, Naraina Industrial Area, Phase I, New Delhi 110028. All disputes are subject to the exclusive jurisdiction of competent courts in New Delhi only

&217$&7HGLWRU#JÃ&#x20AC;OHVLQGLDFRP )256$/(6DGY#JÃ&#x20AC;OHVLQGLDFRP )2568%6&5,37,21KUG#JÃ&#x20AC;OHVLQGLDFRP 7(/)$; 

HATDUHWKHUHDOLPSOLFDWLRQVRIWKHHQWUHQFKHGHUDRI )DNH1HZVRU)DNH,QIRUPDWLRQ ), "+RZGLGLWEHJLQ DQG ZKHUH ZLOO LW HQG" +RZ FDQ LW KDUP VRFLHW\ LQ JHQHUDODSDUWIURPLWVLPPHGLDWHLPSDFWVRQWKHFRXQWU\·VSROLW\ DQGHFRQRP\"7RDQVZHUVXFKFULWLFDOTXHVWLRQVLWLVLPSRUWDQWWRXQGHUVWDQG WKHWZRIDFHWVRI),7KHILUVWLVDQLQLWLDOYDFXXPZKLFKUHVXOWHGIURPPHGLD·V DEGLFDWLRQRILWVUHVSRQVLELOLW\³WRSXWWKHSHRSOHDQGSXEOLFLQWHUHVWILUVW7KH PDLQVWUHDP PHGLD IRUJRW DERXW ZKDW WKH FRPPRQ PDQ ZDQWHG WR NQRZ DQG WKHPDVVHVYDQLVKHGIURPWKHPHGLDWHGLQIRUPDWLRQ7KHVHWUHQGVZHUHYLVLEOH LQ,QGLDZLWKLQWKHILUVWGHFDGHRIWKLVFHQWXU\7KH¶Janata·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¶,QIRUPDWLRQ+D]LQHVV·VRWKDWWKH YRWHUV UHPDLQHG FRQIXVHG \HW JRW VZD\HG E\ ), $V DSSV DQG SODWIRUPV VXFK DV :KDWV$SS 7ZLWWHU )% DQG 6QDSFKDW WRRN RII WKH SROLWLFLDQV IRXQG LW HDV\ WRLQVWDQWO\FRQQHFWZLWKPLOOLRQVRIYRWHUV),·VVXFFHVVZDVQRWRQO\GLFWDWHG E\ WKH DYDLODELOLW\ RI WHFKQRORJ\ WRROV DQG PDQLSXODWLRQV LQ WKH YLUWXDO ZRUOG EXW DOVR E\ LWV DELOLW\ WR DSSHDU FUHGLEOH 1HZ UHVHDUFKHV SURYH WKDW ), FDQ DFKLHYHWZRREMHFWLYHV)RUWKHEHOLHYHUVLQIRUPDWLRQWKDWDGGVWRWKHLUEHOLHIV UHOHDVHVFKHPLFDOVWKDWDGGWRWKHLUVWDWHRIKDSSLQHVV+HQFHWKH\DUHSURQH WR EHOLHYH WKH ZURQJ LQIRUPDWLRQ )RU WKH QRQEHOLHYHUV ´UHSHDWHG VWDWHPHQWV RULOOXVRU\WUXWKV DUHHDVLHUWRSURFHVVDQGVXEVHTXHQWO\SHUFHLYHGWREHPRUH WUXWKIXOWKDQQHZVWDWHPHQWVµ%RWKVHFWLRQVDUHJULSSHGE\WKHSURYHQHIIHFWVRI ´NQRZOHGJHQHJOHFWµLH´WKHIDLOXUHWRUHO\RQVWRUHGNQRZOHGJHLQWKHIDFHRI IOXHQWSURFHVVLQJH[SHULHQFHVµ),EHFDPHWKH¶,QIRUPDWLRQ7VDUµ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·VUHVSRQVLELOLW\WRGD\LVQ·WWRFKHFNWKHSUROLIHUDWLRQRI),DQG WDNH DFWLRQ DJDLQVW WKH XVHUV )RU JRRG JRYHUQDQFH LW QHHGV WR GHOYH LQWR WKH GHHSHUDVSHFWVRIWKH),V\QGURPHDQGWDFNOHWKHSUREOHPDWWKHURRWOHYHO7KH UHDVRQWKLVQHZGHPRQFDQXQOHDVKIRUFHVWKDWFDQGHFLPDWHWKHVHFXULW\RIWKH FRXQWU\),PD\ZLQYRWHVDQGHOHFWLRQVDQGEHFRPHDWRROWRFDSWXUHDQGUHJDLQ SROLWLFDOSRZHUEXWLWFDQWHDUDSDUWWKHQDWLRQ·VVRFLDOIDEULFDQGVKHDUFLYLOLVDWLRQ FRQQHFWVEHWZHHQFODVVHVDQGPDVVHVFDVWHVDQGFRPPXQLWLHVDQGUHOLJLRQV,W FDQOHWORRVHDWRUUHQWRIFHQWULIXJDOIRUFHVWKDWPD\ULSWKHFRXQWU\DSDUW ANIL TYAGI HGLWRU#JÃ&#x20AC;OHVLQGLDFRP

ZZZgfilesLQGLDFRP

https://twitter.com/hellogudday

www.indianbuzz.com

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

https://www.facebook.com/aniltyagi

gfiles inside the government vol. 12, issue 1 | April 2018

3


CONTENTS

COVER STORY

Fly-by-Sire: Yes, Mr Minister The Maharaja is on the street. Armed with a begging bowl, he is being carted around on global roadshows in a bid to sell him to the one who offers the most coins. Hence, the Maharaja may be sold for a song, and loose change. It may be better to separately sell the various invaluable assets of Air India, rather than offer slices of the company as â&#x20AC;&#x2DC;going concernsâ&#x20AC;&#x2122;. Air India was built over decades with the sweat and blood of the people, the taxpayersâ&#x20AC;&#x2122; money. It is the utmost responsibility of the government to pg 8 get the best price for it.

Public loss, private gains

Statescan: Delhi govt just in name

Although Pradip Baijalâ&#x20AC;&#x2122;s bookâ&#x20AC;&#x201D;Disinvestment in India: I Lose and You Gainâ&#x20AC;&#x201D; is a decade old, it is still relevant because the deliberate misconceptions that he wove are still in vogue within the government. pg 18

7KHWZREDVLFIHDWXUHVWKDWGHĂ&#x20AC;QHDJRYHUQPHQWDUH control of law and order and territory. The Delhi government is bereft of both. Itâ&#x20AC;&#x2122;s not a government in its true sense, just a municipal corporation pg 42

Bric-a-brac

Governance: The omniscient bureaucrat

The rise of Baluni, West Bengal, ahoy, Piyush Goyal out of the race?, Technocrat at the helm?

pg 6

Governance: The fuel dilemma The industry and the government shot themselves in the foot with the ban on furnace oil and petcoke, which only resulted in shutting down of units. The answer lies somewhere HOVHÂłLQĂ&#x20AC;QGLQJFKHDSHUDOWHUQDWLYHVWRJDV pg 22

Governance: Regulating wealth The tax cut of 5 per cent given to corporations with up to `250 crore annual turnover needs to be contrasted with the no rate reduction to other taxpayers mostly in the lower and middle income groups pg 28

Globe Scan: Chinaâ&#x20AC;&#x2122;s Belt-Road: Great opportunity for India If India were a partner in the BRI, her potential as a power will not be easy for China to ignore; whereas by staying away from it, India would be surrendering her role as a countervailing power, not only at the BRI forum but also in the region and the world

pg 50

By the Way

Governance: â&#x20AC;&#x2DC;Sagarmalaâ&#x20AC;&#x2122; Corporate Colonising of Indiaâ&#x20AC;&#x2122;s Coast? Under Sagarmala, while Indiaâ&#x20AC;&#x2122;s coasts are being colonised by the corporate carpet-baggers by grabbing prime-land DQGVXFNLQJWD[SD\HU¡VPRQH\LWVHFRORJ\IDUPLQJĂ&#x20AC;VKLQJ as well as the life and livelihood of the coastal population face destruction

Bureaucracy in general and IAS in particular have to change their ethos considerably, leading to a major paradigm shift. With their skills as administrators and knowledge of grassroots gives them an edge. But, there will be situations where out-ofbox solutions will be required. They must keep themselves ahead and not just abreast of problems pg 46

Corruption malaise in Bihar, Passing the buck?, Taking up the cudgels, Virtual pay commission

pg 61

Plus... pg 30

Birthdays of MPs, Civil Servants Tracking: Transfers & Postings

pg 55 pg 58

Statescan: New empress of MP Anandiben Patel, the former Chief Minister of Gujarat and now Governor of MP, appears to be keen to wield the power vested in the post in a different role and in a different State

4

gfiles inside the government vol. 12, issue 1 | April 2018

pg 36

www.gfilesindia.com   KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH


LETTERS editor@gfilesindia.com

Another arms deal! )URP%RIRUVWR5DIDOH ´5DIDOHGHDO 0HVVE\SROLWLFLDQVµgfiles)HEUXDU\ 0DUFK RXUSROLWLFLDQVKDYHD SRRUWUDFNUHFRUGZKHQLWFRPHVWR DUPVGHDOV*UHHGVHHPVWRRYHUFRPH QDWLRQDOVHFXULW\LQWHUHVWVDWWKHGURSRI DKDW7KHDPRXQWRIPRQLHVH[FKDQJHG DQGWKHFKDLQRIPRQH\WUDQVIHULV PLQGERJJOLQJDV\RXUDUWLFOHVXJJHVWV $OOGHIHQFHVFDQGDOVKDYHDQ LQWHUQDWLRQDOGLPHQVLRQWRWKHP7KRXJK WKHPRQH\SDLGRULJLQDWHVIURPWKH JRYHUQPHQWH[FKHTXHULWLVSDLGDEURDG DQGFRPPLVVLRQVDUHGLVWULEXWHGDFURVV VHFUHWLYHWD[KDYHQV L Patnaik via blog

www.indianbuzz.com

:KLOH,DJUHHZLWK\RXRQWKHSROLWLFDO DUPVLQGXVWU\QH[XVDVRQHRIWKHUHD VRQVIRUFRQIOLFWVZKLFKDUHHQJLQHHUHG LQDIHZFDVHV,GLVDJUHHZLWKWKHORJLF RI\RXUREVHUYDWLRQ JLYHQEHORZ WKDW LPSOLHVLWLVWKHRQO\UHDVRQIRUDUPHG FRQIOLFWV´:KLOHWKHORJLFRIEHLQJSUH SDUHGIRUDQ\RQVODXJKWDQ\DWWDFNIURP DQHQHP\VHHPVVRXQGLQWKHRU\LQ SUDFWLFHWKHPRPHQWRQHLVVRDUPHG RQHVXEFRQVFLRXVO\VHHNVDEDWWOHILHOGWR WHVWWKHPGHSOR\WKHPDQGXVHWKHPµ 'HPRFUDWLFQDWLRQVNHHSVWDQGLQJ DUPLHVWRSURWHFWWKHWHUULWRULDOLQWHJULW\ RIWKHQDWLRQQRWSDPSHUDUPVLQGXVWUL DOFRPSOH[HV2WKHUZLVHWKHQDWLRQPD\ QRWEHDEOHWREDVLFVHFXULW\IRULWVFLWL ]HQVWRHQMR\DSHDFHIXOOLIH/HWXVQRW EHRYHUWDNHQE\SDVVLRQEXWWDNHUHDOLV WLFDQGSUDFWLFDOPHDVXUHVWRHQVXUHRXU GHPRFUDWLFVWUXFWXUHUHPDLQVDOHUWWR SUHYHQWDUPVLQGXVWU\FRPSOH[HVIURP LQILOWUDWLQJWKHUDQNVRIJRYHUQPHQW Col R Hariharan via Facebook 5HOLDQFHLVWKHWKLUGDQJOHRIWKHWULDQ JOH$YHU\EROGDQGIDFWXDOZULWHXS Avtar K Kaul via Facebook Ugly fight in Delhi? 7KH'HOKLVWRU\LVELDVHGDQGORDGHG 8QFLYLOILJKWgfiles)HEUXDU\0DUFK

 6HHPVWKHMRXUQDOLVRXWWR DSSHDVHLWVEXUHDXFUDWVRQERDUGWKDQ JRLQJGHHSHU:K\KROGHOHFWLRQVLIUHS UHVHQWDWLYHVQRWJLYHQIUHHGRP":K\ ODYLVKDIDUFLFDODVVHPEO\ZKHQVRPH RQHXQHOHFWHGKDVWRZLHOGDXWKRULW\",W LVWKLVIDOODF\WKDWQHHGVFKDOOHQJLQJ,W LVLPPDWHULDOLI$$3UHPDLQVDWWRSRU VRPHRWKHURXWILWWDNHVRYHU,WLVWKH SHRSOHV·ZLOOWKDWPDWWHUVPRVWDQGQRW D/*RU&07KLVQHHGVUHYLVLRQ Vinod Kapoor via Facebook ,WLVLQGHHGDORDGHGDUWLFOH DJDLQVW$UYLQG.HMULZDO7KHDXWKRU DWWKHRXWVHWEUDQGVKLPDQDQDUFKLVW VRPHRQHZKRGRHVQ·WXQGHUVWDQG DGPLQLVWUDWLRQH[HFXWLYHDQGVRRQ ,WZRXOGKDYHEHHQEHWWHUWRUHPLQG WKHPDERXWHVWDEOLVKLQJGHPRFUDF\ DQGSHRSOHV·YHUGLFWILUVW5HVWLVDOO PRWLYDWHGDQGELDVHG6RUU\ Smita Parekh via Facebook Editorâ&#x20AC;&#x2122;s Reply: $WSUHVHQWLQ'HOKL WKHUHLVGLVWULEXWLRQRISRZHUEHWZHHQ WKH/W*RYHUQRUDQGWKHHOHFWHG UHSUHVHQWDWLYHVDQGWKHODWWHUKDYHWR UHVSHFWWKLVDQGZRUNZLWKLQWKLV,Q UHVSRQVHWRWKHVHFRQGOHWWHU,ZRXOG OLNHWRUHPLQGWKDW$UYLQG.HMULZDOKDV FDOOHGKLPVHOIDQDQDUFKLVW

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

5


Bric-a-brac ups & downs

The rise of Baluni bjp rajya sabha list raises brows

T

HE selection of Rajya Sabha candidates by the BJP has bewildered many in the â&#x20AC;&#x2DC;saffron-campâ&#x20AC;&#x2122;. The BJP has even accommodated politicians who were persona non grata for the RSS. Narendra Modi and Amit Shah seem to have selected candidates as per the latterâ&#x20AC;&#x2122;s utility as a politician. Also, many were surprised when RSSâ&#x20AC;&#x2122; prominent face Ram Madhavâ&#x20AC;&#x2122;s name was not in the list whereas an unknown face like Anil Baluni from Uttarakhand scored a position in the Upper House. Baluni was once a stringer to minor newspapers like Kuber Times and JVG Times. With ut down and time, both the newspapers shut Baluni began visiting the BJP and RSSâ&#x20AC;&#x2122; Delhi offices. Here he came in touch with Sunder Singh Bhandari. When Bhandari became the Governor of Gujarat, he

made Baluni his Officer on Special Duty. This was sometime around 2001. It was the same time when Modi took over as Gujarat Chief Minister. Baluni then played a role of the medium of communication between Modi and Bhandari. Unfortunately, Bhandari passed away and a grieved Baluni reached out to Modi. Modi then appointed Baluni as the spokesperson of Uttarakhand BJP. When Modi came to power at the Centre, Baluni too emerged as the national spokesperson of the BJP. Modi, it is known, never forgets his trusted aides and as a testimony to that, Baluni was obliged with a Rajya Sabha Sabh seat. In an aside, veteran leader o of Uttarakhand BC Khanduri m must be bemused to see Baluniâ&#x20AC;&#x2122;s rise, a man he snubbed when he was the Chief Minister of Uttarakhand. g

West Bengal, ahoy aspirants line up for bjp tickets

F

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·VFHQWUDORIILFHWKURXJK KURXJK LWVPDQ\GHSDUWPHQWVWKH\SRVHDVFHQWUDORIILFHUHSUHVHQWDWLYHV ZKLFKJLYHVWKHPDQHGJHDQGDFFHVVWRWKHQHJOLJLEOHOHDGHUVKLS 6RPHRIWKHVHER\VKDYHDOVRUHQWHGDFFRPPRGDWLRQLQ.RONDWD 7RJHWIXUWKHUVRPHKDYHHYHQKLUHGWKHVHUYLFHVRI%DQJOD ODQJXDJHWHDFKHUWREHDEOHLQIOXHQFHWKHYRWHUVE\FODLPLQJWKHPVHOYHV YHV DVORFDOSROLWLFLDQ6RLI\RXGRQ·WKDYHDQ\VHDWWRFRQWHVWDQGDUHHDJHUWR HDJHUWR HQWHUWKH%-3EDQGZDJRQUXVKWR:HVW%HQJDODQGFKRRVHDFRQVWLWXHQF\ WXHQF\ ZKRNQRZV\RXPD\EHDQ03VRRQ g

6

gfiles inside the government vol. 12, issue 1 | April 2018

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


Bric-a-brac Piyush Goyal out of the race? scam rumours kill dreams of finance ministry

C

HARTERED DFFRXQWDQWWXUQHGSROLWLFLDQ5DLOZD\0LQLVWHU3L\XVK*R\DO LVRQHRIWKHVPDUWHVWPLQLVWHUVLQWKH1DUHQGUD0RGLFDELQHW0RGLDOVR KDVKLJKH[SHFWDWLRQVIURPKLPLUUHVSHFWLYHRIKLVDOOHJHGILQDQFLDO DEH DEHUUDWLRQV+HKDVUHFHQWO\EHHQYHU\DFWLYHDQGSOD\HGDQLPSRUWDQWUROHLQ WKH835DM\D6DEKDHOHFWLRQV83&KLHI0LQLVWHU<RJL$GLW\DQDWKZDVDOVR WKH8 LPSUHV LPSUHVVHGE\KLVZRUNLQJVW\OH*R\DOLVFORVHWRDLOLQJ)LQDQFH0LQLVWHU$UXQ -DLWOH\0DQ\LQWKH%-3·VUXOLQJFOLTXHKDGWKRXJKWWKDWLQ-DLWOH\·VDEVHQFH -DLWOH\ FKDUJHR FKDUJHRIWKH)LQDQFH0LQLVWU\ZRXOGEHJLYHQWR3L\XVK*R\DO%XWHYHU\WKLQJ LVQHYHUDVLWVHHPV%HIRUHWKHPRYHFRXOGPDWHULDOLVHLWZDVUHSRUWHGE\D LVQHYHU QHZVZHEVLWHWKDW*R\DOLVDOOHJHGO\FRQQHFWHGZLWK0XPEDLEDVHGODPLQDWHV QHZVZH PDNHU6K PDNHU6KLUGL,QGXVWULHVZKLFKKDVGHIDXOWHGRQ`FURUH7KHWLPLQJRIWKH QHZ QHZVZDVLPSRUWDQW6RXUFHVGLVFORVHGWKDWDQHZO\QRPLQDWHG5DM\D 6DEKDPHPEHUKLQWHGRIWKHVFDPWRWKHQHZVZHEVLWH,W·VDOVR GLVFORVHGWKDWWKHVDLG5DM\D6DEKDPHPEHUGHVLUHVWREHWKHQHZ )LQDQFH0LQLVWHUDGUHDPZKLFKKHKDVQXUWXUHGIRUWKHODVWWZR\HDUV 0RGLVHHPVXQID]HGE\WKHWXUQRIHYHQWVEXWWKHEX]]LVWKDW0RGLZLOO NHHSWKH)LQDQFH0LQLVWU\KLPVHOIDQGZLOOPDQDJHZLWKHIILFLHQWRIILFLDOVRIWKH PLQLVWU\*R\DOIRUWKHWLPHEHLQJLVRXWRIWKHUDFHg

Technocrat 30? looking at congress in 2019

I

MAGINE the day when India is governed by a technocrat. Of late, technocrats have expressed their willingness to be Prime Minister, President and Vice-President of the country. In the past, technocrats have served as Secretary Power, Vice-Chairman of Planning Commission, and Secretary Finance. The main founder of a Bengaluru-based technology giant planted a story about himself being considered for the post of President. One technocrat-turned-election manager of the NDA and UPA is annoyed with the BJP and the Congress for not sending him to Rajya Sabha. But aspirations never die. There is a sudden uneasiness in the Congress about the resurgent role of a technocrat who already commands considerable clout in the party. He has reportedly deputed his technical team in the data centre of the party. Rahul Gandhi has unflinching trust in his administrative capabilities. It is being surmised that a 2004-like â&#x20AC;&#x2DC;coalitionâ&#x20AC;&#x2122; situation is possible in 2019 and everybody may claim to be a prime ministerial candidate. Rahul Gandhi would not like to be Prime Minister in a chaotic political scenario. The Congress may, and in all probability will, have an alternate name to be proposed for the coveted post. And he naturally be a trusted and able candidate. g

www.indianbuzz.com

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

7


COVER STORY

air india disinvestment

Fly-by-Sire: Yes, Mr Minister 7KH0DKDUDMDLVRQWKHVWUHHW$UPHGZLWKDEHJJLQJERZOKHLV EHLQJFDUWHGDURXQGRQJOREDOURDGVKRZVLQDELGWRVHOOKLPWRWKH RQHZKRRIIHUVWKHPRVWFRLQV+HQFHWKH0DKDUDMDPD\EHVROGIRU DVRQJDQGORRVHFKDQJH,WPD\EHEHWWHUWRVHSDUDWHO\VHOOWKH YDULRXVLQYDOXDEOHDVVHWVRI$LU,QGLDUDWKHUWKDQRIIHUVOLFHVRIWKH FRPSDQ\DV¶JRLQJFRQFHUQV·$LU,QGLDZDVEXLOWRYHUGHFDGHVZLWK WKHVZHDWDQGEORRGRIWKHSHRSOHWKHWD[SD\HUV·PRQH\,WLVWKH XWPRVWUHVSRQVLELOLW\RIWKHJRYHUQPHQWWRJHWWKHEHVWSULFHIRULW

E\ ALAM SRINIVAS V

G

ORDON Gekko has emerged as one of those movie characters that some people love love, but b hate to love Th rest, of course, loathe him. love. The The manipulative, blackmailing, conning, corrupt, in-your-face and unlawful takeover specialist does all the wrong things possible on Wall Street. He hustles managements, bustles stock traders, tussles competitors, and even susses loyalists.

8

gfiles inside the government vol. 12, issue 1 | April 2018

In the Hollywood flick, Wall Street (1987), Gekkoâ&#x20AC;&#x2122;s name is forever intertwined with greedâ&#x20AC;&#x201D;money, more wealth, profits through any means. As the predator homes in on his corporate targets, which he buys at discounted prices and sells at obviously higher ones, Gekko unveils the rules of the unsavoury

â&#x20AC;&#x2DC;jungleâ&#x20AC;&#x2122; games in the computerised world of stock trading and brick-and-mortar boardrooms. They envelop issues related to politics, money, and philosophy. An ethical entrepreneur and a passionate policy maker may hate him, but she can learn valuable, profitable and long-lasting lessons from this master, but mad, genius. Ironically, this is true for a seller of family and crown jewels. For the leaves that you can take out from Gekkoâ&#x20AC;&#x2122;s diary

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


can hike your profits several-fold. For instance, if Gekko tells you that the sum of parts (of assets) can be greater than the whole, you should take heed. When the corporate carnivore says greed is good, you should be attentive. And when Gekko blames the managements for the problems that plague the corporate world, you need to look yourself at the mirror, rather than give furtive sideway glances. Past experience proves that several governments across the world have borrowed something or the other from Gekko. In the process, they have earned higher profits from the sale of state-owned assets and companies. Unfortunately, these basic tenets t were ignored in the strategic sale of Air A India. In this case, the Indian government m was in an inexplicable hurry,

Fleet size of AIXL as on 31st March 2017 S. No.

Category

Numbers

Seating Capacity

Owned/ Leased

Average Age (yrs.)



%





)LQDQFLDO/HDVH





%1*

6



2SHUDWLQJ/HDVH



inclined towards certain buyers, and inextricably aloof to profits. To understand what the government will do with Air India look at what it has proposed. As a first step, it has clubbed the businesses of the parent, Air India, and two of its subsidiaries, Air India Express (100%) and Air India SATS Airport Services (50%). According to the Preliminary Information Memorandum (PIM), the parent had an operating fleet of 115 aircraft (December 31, 2017), a net-

work coverage of 93 destinations (54 domestic and 39 global), and almost 3,100 combined departures per week. In addition, it offered 51 destinations through its â&#x20AC;&#x153;secondary network of code share operations... under 19 code share agreements with foreign carriersâ&#x20AC;?. Air India Express is a â&#x20AC;&#x153;low-cost carrierâ&#x20AC;? and provides â&#x20AC;&#x153;services between India and certain destinations in Middle East and South East Asia. With a fleet of 23 aircraft, it â&#x20AC;&#x153;operates around 555 departures per

Fleet size of AI as on 31st December 2017 Category

Nos.

Seating Capacity

Owned

Finance Lease*

Sale and Lease Back

Dry Lease

Average Age (yrs.)

%







%/5









%(5









%





6

Total Wide-body

46

-

8

$







$







Boeing Wide-body Fleet 

15







23

6.8





Airbus Narrow-body Fleet

$











$1









A320

27

-

$





$







A319

22

9

10

A321-211

20

182

8

12

69

-

24

22

1

22

7.9

115

-

32

37

24

22

7.4









12

-

5

7

Total Narrow-body Total Operating Fleet

7

1

19

5.5







 3

9.5 9.1

Grounded Aircraft %$ Total Grounded Aircraft**

1RWH2XWRIWKHWRWDODLUFUDIWRZQHGRQILQDQFHOHDVHDUHRZQHGDQGDUHRQILQDQFHOHDVHZKLFKZLOOUHYHUWWR$,DWWKHHQGRIWKHSHULRGZLWKD QRPLQDOSD\PHQW ,QFOXGHVWKHDLUFUDIWZLWKGUDZQIURPRSHUDWLRQVDQGDZDLWLQJGHUHJLVWUDWLRQ

www.indianbuzz.com

  KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

9


COVER STORY

air india disinvestment

week connecting around 13 international destinations and around 16 domestic destinations”. Air India SATS is 50:50 joint venture between Air India and Singapore’s SATS, and offers ground and cargo handling at five airports in five bigger cities— Bengaluru, Delhi, Hyderabad, Mangalore, and Trivandrum.

I

NITIALLY, 76 per cent stake of the combined operations of these three entities will be sold in one go. They can be purchased by a single bidder, consortium, or even an entity formed by the existing employees of Air India. The other subsidiaries of Air India, 100% in Air India Engineering Services, 100% Air India Air Transport Services, 100% in Airline Allied Services, and 80.3% in Hotel Corporation, will be separated from the parent, and sold separately. The same will happen to most of the real estate owned by Air India.

10

gfiles inside the government vol. 12, issue 1 | April 2018

The government is going about it in the wrong way. The entities—airline operations, maintenance and repair works, and hotels and air kitchen services—are being sold as separate “running concerns”, and not as separate assets Immense sense in sum of parts Now, look at the differences between how Gekko proposes to dispose of the assets in his potential acquisition, Bluestar Airline, and Air India. Explains movie-predator’s investment banker, “No sweat, we already got the Bleezburg Brothers lined up to build condos where the hangars are, we can lay off the planes with Mexicana, who are dumb enough to buy ‘em and Texas Air is drooling at my kneecaps to get the

slots and the routes. What’s the problem? It’s done.” A trusted manager adds, “This is the price tag on the 737s, gates, hangars, routes, we got it all nailed right down to the typewriters.” In a nutshell, Gekko plans to sell all the assets—planes, hangars, slots and routes—to separate buyers. For asset strippers like him—there are scores of them in real life—the sum of the parts of the underlying assets is much higher than the whole. Thus, it is always more profitable to sell them off individually, rather than attempt to run the company as a going concern. Gekko isn’t bothered about businesses or people, only in the profits. For obvious reasons, such predators are abhorred by certain business sections, and governments, which wish to save national assets and the interests of the workforce in specific cases. This explains why there is a raging debate in the UK, which opted for Brexit or to remain out-

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


side the European Union because of nationalistic mind set, on M&A assetstripping. This followed deals like the Kraftâ&#x20AC;&#x2122;s Pounds 11.5 billion acquisition of British Cadbury. In retrospect, the takeover â&#x20AC;&#x153;was manipulated by foresighted techniques including asset-stripping... to dismantle UK companiesâ&#x20AC;?. But imagine yourself to be a seller, who is disposing off the assets built by the hard-earned monies of the countryâ&#x20AC;&#x2122;s taxpayers. Isnâ&#x20AC;&#x2122;t it the ownerâ&#x20AC;&#x2122;s right to take public interest into account and, hence, extract the last possible penny out of the pockets of the potential buyers? To be fair to the government, it claims that it is trying to achieve the same objective. This is why it wants to sell Air India in a piecemeal fashion, Gekko-style, as several entities, and simultaneously find buyers for the properties. ***** ADLY, the government is going about it in the wrong way. The entitiesâ&#x20AC;&#x201D;airline operations, maintenance and repair works, and hotels and air kitchen servicesâ&#x20AC;&#x201D;are being sold as separate â&#x20AC;&#x153;running concernsâ&#x20AC;?, and not as separate assets. It now seemsâ&#x20AC;&#x201D;and this can change in the futureâ&#x20AC;&#x201D;only real estate will be sold in the true Gekko-style. Remember Gordon Gekko wanted to strip Bluestar, not run or manage it. This may have been the best way to extricate the maximum profits out of the strategic sale of Air India. The PIM itself indicates that this may be true given the intrinsic value of the individual assets. Just Air India and Air India Express, or part of the â&#x20AC;&#x2DC;Combined Airlineâ&#x20AC;&#x2122; up for sale, â&#x20AC;&#x153;owns 62 per cent, including finance lease, of its total fleet, in comparison to other Indian carriers who own very low number of aircraft, the highest being 28%â&#x20AC;?. In addition, two Boeing 747-400 and one Airbus 320 are in the name of the lessor â&#x20AC;&#x153;but no lease rental are payable since the termination sum has

S

www.indianbuzz.com

T

Fall Street

HE  +ROO\ZRRG IOLFN :DOO StreetKDVWZRSURWDJRQLVWVQRW VXUSULVLQJO\ PHQ ZKR DUH WKH 0DVWHUV RI WKH ILQDQFLDO  8QLYHUVH *RUGRQ *HNNR 0LFKDHO 'RXJODV  D FRUSRUDWH UDLGHU RI WKH ZRUVW NLQG %XG )R[ &KDUOLH 6KHHQ  DQ DPEL WLRXV VWRFN EURNHU ZKR LV ZLOOLQJ WR OHDUQQHZZD\VWREUHDNWKHUXOHVWR PDUFKIRUZDUGRQ:DOO6WUHHW2QHLV ROG H[SHULHQFHG DQG EUXWDO ZLWK D VLQJOHPLQGHG REVHVVLRQ JUHHG 7KH RWKHULV\RXQJZKRLVZLOOLQJWRQLEEOH DZD\ DW WKH ¶JRRG· WKLQJV LQ OLIH ZHDOWKZRPHQZLQHDQGSRZHU *HNNRLVWKHTXLQWHVVHQWLDOFRUSR UDWH FDUQLYRUH D UXWKOHVV UDLGHU +LV RQO\EXVLQHVVLVWRPDNHPRQH\DQ\ ZKLFKZD\VKHFDQHYHQLIKHKDVWR VNLUWRUHYHQEUHDNWKHODZV+HLVD SUHGDWRUZKREHOLHYHVLQMXQJOHUXOHV LH OLYH DQG OHW GLH +H UHVRUWV WR EODFNPDLO JUHHQPDLO  LH IRUFH RSSRQHQWV WR SD\ D SUHPLXP IRU KLV VKDUHVLIWKH\ZDQWWRZLVKKLPDZD\ +HEUHDNVXSDQGVWULSVWKHDVVHWVRI WKH FRPSDQLHV KH WDNHV RYHU LI WKH LQWULQVLF YDOXH RI WKH DVVHWV LV PRUH WKDQ WKH IXWXUH SURILWDELOLW\ RI WKH EXVLQHVVHV ,Q FRPSDULVRQ )R[ LV QRW D KRO\ FRZEXWKHKDVQ·WUHDFKHGWKHKHLJKWV RI WKH FRUUXSW VWDWXUH RI KLV PHQWRU

already been paidâ&#x20AC;?. Their title is transferable in the name of the new entity on payment of $1. Although the average age of the parentâ&#x20AC;&#x2122;s (excluding Air India Express) fleet is 7.4 years, many of its aircraft are quite young and modern. The average age of five Boeing 747-400 is 22 years, and that of eight Airbus 320-231 is a higher 24.2 years. Another 45 Airbus planesâ&#x20AC;&#x2122; average

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¡V QH[W WDUJHW EHFDXVHKLVIDWKHUKDVZRUNHGZLWK WKH FRPSDQ\ IRU GHFDGHV 7KH SUR WpJpLVFRQYLQFHGWKDWKLVJRGIDWKHU LVJHQXLQHO\LQWHUHVWHGWRWXUQDURXQG WKHIRUWXQHVRIWKHDLOLQJDLUOLQH6R ZKHQ)R[OHDUQVLQDGYHUWHQWO\WKDW *HNNR ZDQWV WR EUHDN %OXHVWDU $LUOLQHDQGVHOOWKHLQGLYLGXDODVVHWV SODQHVKDQJDUVVORWVDQGURXWHV WR VHSDUDWHEX\HUVKHLVVDGPDGDQG VHHPLQJO\KHOSOHVV ,W¡V JDPH VHW DQGPDWFK 2U LV LW" :DWFK WKH PRYLH WR VHH KRZ WKLV FRUSRUDWH FLUFXV XQIROGV <RXZLOOEHVXUSULVHG$QG\HVWKHUH LVDQHZWZLVWLQWKHHQG

age is between 8.8 and 11 years. As the PIM adds, â&#x20AC;&#x153;Owned fleet, including finance lease, purchased at attractive terms, would enable Combined Airline (Air India and Air India Express) to offer cost competitive services going forward.â&#x20AC;? Clearly, the market prices of most of the fleet will be attractive, and it may be a good idea to find a separate buyer, or buyers, for the planes.

  KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

11


COVER STORY

air india disinvestment

The same is true with the slots, routes and bilateral rights (i.e. the landing rights inked by India with other countries). The slots and bilateral are currently underutilized and, hence, offer immense scope for future revenues and profits. As the PIM explains, â&#x20AC;&#x153;Combined Airline (i.e. up for sale) has slots at top domestic airports which are growth constrained due to airport infrastructure issues.... Slots can be utilized to... develop hub for international operations.â&#x20AC;? Obviously, these can be independently lucrative.

O

N bilateral, the PIM claims, â&#x20AC;&#x153;Huge potential for growth and increasing market share in international markets: scope for improvement in utilization of bilateral rights.â&#x20AC;? At present, only Air India has over 3,700 domestic slots, over 2,500 global ones, and bilateral rights with dozens of countries that entitle it to over 970,000 seats per week in each direction. The bilateral with the US is â&#x20AC;&#x153;unlimitedâ&#x20AC;?, and those with ASEAN and SAARC nations â&#x20AC;&#x153;have unlimited capacity entitlements between the 18 tourist destinations in India.â&#x20AC;? Letâ&#x20AC;&#x2122;s not forget the value and worth of Air Indiaâ&#x20AC;&#x2122;s brand, goodwill and reputation. Although no one has put a figure to it, it has to be huge. The PIM hints at this: â&#x20AC;&#x153;Air India enjoys enormous goodwill and reputation worldwide and in India. The brand comprising, inter alia, the Maharaja logo, Fly-Well Air India logo, Flying Swan-Air logo, and Sun logo are all registered trademarks in India.â&#x20AC;? If sold separately, just these logos, along with goodwill and intangible brand value, can fetch thousands of crores of rupees. Add Air India â&#x20AC;&#x2DC;Star Allianceâ&#x20AC;&#x2122; status, which is extremely tough to get, to the goodwill, and the state-owned airline will fetch a higher price. Maybe there is indeed a case to sell Air India, and its several subsidiaries, as piecemeal assets, and not as separate going concerns.

12

gfiles inside the government vol. 12, issue 1 | April 2018

Year-wise Select Operating parameters for AI S. No.

Indicator

FY2013

FY2014

FY2015

FY2016

FY2017



)OHHW6L]H 1R  $VRQ VW0DU 













1XPEHURI'HSDUWXUHV



$6.0 0Q 













53.0 0Q 













'DLO\$LUFUDIW8WLOL]DWLRQ RQ7RWDO)OHHW +RXUV 













5$6. ,15 













&$6. ,15 













&$6.²([)XHO ,15 













<LHOG ,15 











    

6RXUFH$QQXDO5HSRUWV'*&$

www.gfilesindia.com   KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH


***** Even if the government wanted to sell the separate entities of Air India as running concerns, there were better ways to do so. At present, the mix-and-matches of the entities don’t make sense. Consider the businesses included in the Combined Airline that’ll be sold first. They include the aircraft and routes of Air India and Airline Express, but not those of Airline Allied Services, a 100% subsidiary, which connects Tier II and III cities with the metro hubs. It would be logical to sell all the planes and routes, and slots and bilateral rights in one go, as a single entity, to hike valuations. A crucial component of the Combined Airline that will put on the block first includes the 50% interest in Air India SATS, which is into ground and cargo handling services at five airports. However, another Air India’s subsidiary, Air India Air Transport Services, is also involved in the same business, and at 69 additional airports. But the latter hasn’t been included as a part of the deal. Any seller would have combined the operations of Air India SATS in the five

www.indianbuzz.com

Let’s not forget the value and worth of Air India’s brand, goodwill and reputation. Although no one has put a figure to it, it has to be huge. The PIM hints at this: “Air India enjoys enormous goodwill and reputation worldwide and in India main cities, and the handling functions of the other 69 airports, and sold them together, but separate from the airline to increase competition. There was a better solution. According to the PIM, “SATS is a leading provider of food solutions and gateway services with over 60 years of ground handling and catering experience.” The government could have combined the operations of Air India SATS, Air India Air Transport Services and the hotel-and-kitchen businesses of Hotel Corporation, and sold them together as a going concern. Thus, the government could have sold the

airline businesses and the ones related to handling and catering separately. Yet another smartest way: the government should have clubbed the airline, handling, and catering/hotel operations together and sold them in one go. Any of the above strategies could have worked wonders in terms of returns. ***** O think of the most profitable ways to sell the family or crown jewels requires an overriding greed, and desire to maximize profits. As Gekko said, “The point is, ladies and gentlemen, greed is good. Greed works, greed is right. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed in all its forms, greed for life, money, love, knowledge, has marked the upward surge of mankind—and greed, mark my words—will save... that other malfunctioning corporation called the USA.” If greed drives the profitable desire of a buyer, who wishes to resell the assets, it should be a compulsory part of the willing seller’s strategy. This is especially true for a seller like a government that has to safe-

T

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

13


COVER STORY

air india disinvestment

guard public assets (state-owned companies and natural resources). Even a seller of small things takes steps to attract buyers. Why shouldnâ&#x20AC;&#x2122;t a government do it? Couldnâ&#x20AC;&#x2122;t Air India be presented in a more attractive fashion to potential buyers? For example, one of the most financially repulsive aspects of Air India, and its subsidiaries, is the huge debt. As per the PIM, Air Indiaâ&#x20AC;&#x2122;s non-current and current liabilities, including long-term loans and short-term loans, were `65,800 crore in 2016-17, of which the debt component was over `48,800 crore. These figures exclude the liabilities of the two subsidiaries, Air India Express, and Air India SATS, which are part of the Combined Airline. Another fact is that Air India, Air India Express, and Air India SATS earn operating profits. Although Air India incurred a massive post-tax annual loss of `5,765 crore in 2016-17, surprisingly, its profit before interest and tax was a positive `486.5 crore. Only a debilitating financial (interest) cost of `4,235.9 crore resulted in a net loss. Air India Express and Air India SATS earned a net profit of `296.7 crore and `66.1 crore, respectively. Obviously, the sale price of the Combined Airline would zoom if the government took out the debt out of it. Experts argue that the difference in valuation between debt-ridden Combined Airline and debt-free entity would be more than enough to repay the debt and still be left with a huge surplus. However, it seems that the governmentâ&#x20AC;&#x2122;s objective was to get â&#x20AC;&#x153;ridâ&#x20AC;? of a part of the huge debt, along with some of the crucial businesses. This is evident from the PIM. â&#x20AC;&#x153;The existing debt and liabilities of AI (Air India) and AIXL (Air India Express) as on March 31, 2017, are being reallocated and it is expected that debt and liabilities, including net current liabilities of `88,160 million (8,816 crore), aggregating to `333,920 million (33,392 crore) with remain with AI and AIXL. This number

14

gfiles inside the government vol. 12, issue 1 | April 2018

Hidden values Size and ownership of fleet: &RPELQHG $LUOLQH $LU,QGLDDQG$LU,QGLD([SUHVV  KDVDQRSHUDWLQJIOHHWRISODQHV DV RQ 'HFHPEHU   LQFOXGH  $LUEXV DQG  %RHLQJ LW RZQV PRVW SHUFHQW RILWVIOHHWPXFK KLJKHUWKDQWKHRWKHU,QGLDQFDUULHUV ZKHUH WKH KLJKHVW RQH RZQV  SHU FHQWWKUHHPRUHSODQHVZLOOEHRZQHG

DQGQRUHQWDOVKDYHWREHSDLG´WKHUH LV DQ XSVLGH SURILW VKDULQJ¾ RQ WKH OHDVHV RI IRXU RWKHU %RHLQJV ´WR DQ H[WHQW RI  SHU FHQW RI WKH SURILWV UHDOL]HG LQ FDVH VDOH YDOXH H[FHHGV  PLOOLRQ DW WKH WHUPLQDWLRQ RI OHDVH¾QHZSODQHVWREHGHOLYHUHG WRWKH&RPELQHG$LUOLQHLQDQG 

List of Domestic Slots per week available with AI as of 31st December 2017 Region

Destinations

1RUWKHUQ5HJLRQ $JUD$PULWVDU%KRSDO&KDQGLJDUK'HOKL-DLSXU -DPPX-RGKSXU.KDMXUDKR/HK/XFNQRZ5DLSXU 6ULQDJDU8GDLSXU9DUDQDVL,QGRUH (DVWHUQ5HJLRQ $JDUWDOD$L]DZO%DJGRJUD%KXEDQHVZDU'LEUXJDUK 'LPDSXU*D\D*XZDKDWL,PSKDO.RONDWD3DWQD 3RUW%ODLU5DQFKL6LOFKDU :HVWHUQ5HJLRQ $KPHGDEDG-DPQDJDU0XPEDL1DJSXU3XQH 5DMNRW6XUDW9DGRGDUD*RD$XUDQJDEDG1DQGHG 6RXWKHUQ5HJLRQ %HQJDOXUX&KHQQDL&RLPEDWRUH+\GHUDEDG .RFKL.R]KLNRGH0DGXUDL+XEOL0DQJDORUH 7KLUXYDQDQWKDSXUDP7LUXSDWL9LMD\DZDGD 9LVDNKDSDWQDP Total

Slots Available 



 

3,739

List of International Slots per week available with AI as of 31st December 2017 Region

Destinations

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otal

Slots Available        

2,543

VHUYLFHVEHLQJFRQVLGHUHGWREHVWDUWHGVKRUWO\

www.gfilesindia.com   KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH


/LVWRI%LODWHUDO5LJKWVRIDOO,QGLDQ&DUULHUVRQURXWHVRSHUDWHGE\$,$,;/ Region

Country

Indian Entitlements Seats/wk.e.d*

USA

8QOLPLWHG

1257+$0(5,&$ &DQDGD



5HJLRQ7RWDO $6,$

&KLQD +RQJ.RQJ



-DSDQ



6LQJDSRUH



7KDLODQG



5HS2I.RUHD



$XVWUDOLD



2WKHUV



5HJLRQ7RWDO



8.



(8523( $XVWULD



)UDQFH



*HUPDQ\



6SDLQ



,WDO\



1HWKHUODQG 'HQPDUN  2WKHUV 5HJLRQ7RWDO *8/)DQG0,''/( EAST

%DKUDLQ

    

2PDQ



4DWDU



.XZDLW



6DXGL$UDELD 



8$( 'XEDL 



2WKHUV



%DQJODGHVK

 

1HSDO



6UL/DQND



3DNLVWDQ



$IJKDQLVWDQ %KXWDQ 0\DQPDU 0DOGLYHV 5HJLRQ7RWDO

www.indianbuzz.com

 

8$(6+-

5HJLRQ7RWDO

Grand Total



8$($8+$$1 8$( 5.7 

5(*,21$/6

 

 8QOLPLWHG    970,388.8

Broad List of AI Code share agreements Star      

Carriers /XIWKDQVD $XVWULDQ$LUOLQHV 6ZLVV $GULD$LUZD\V &URDWLD$LUOLQHV %UXVVHOV$LUOLQHV

       Non-Star      

7XUNLVK$LUOLQHV (WKLRSLDQ$LUOLQHV (J\SW$LU $VLDQD$LUOLQHV 6LQJDSRUH$LUOLQHV (YD$LU $LU&DQDGD Carriers $LU$VWDQD $LU$XVWUDO $LU0DXULWLXV )O\%H +RQJ.RQJ$LUOLQHV $LU,QGLD([SUHVV

Brand and goodwill:3,0VWDWHV´$LU ,QGLD HQMR\V HQRUPRXV JRRGZLOO DQG UHSXWDWLRQ ZRUOGZLGH DQG LQ ,QGLD 7KHEUDQGFRPSULVLQJLQWHUDOLDWKH 0DKDUDMDORJR)O\:HOO$LU,QGLDORJR )O\LQJ 6ZDQ$LU ,QGLD ORJR DQG 6XQ ORJRDUHDOOUHJLVWHUHGWUDGHPDUNV7KH WUDGHPDUNDSSOLFDWLRQIRU¶$LU,QGLD·LQ ORJR IRUP LV SUHVHQWO\ DFFHSWHG DQG DGYHUWLVHGLQWKH7UDGHPDUNV-RXUQDO DQGZLOOEHUHJLVWHUHGLQGXHFRXUVHµ $LU,QGLD·VEUDQGYDOXHLVXQPDWFKHG JLYHQLWVH[LVWHQFHIRUVHYHUDOGHFDGHV Real estate:$FFRUGLQJWRWKH EDODQFHVKHHW$LU,QGLDRZQVIL[HG DVVHWV ODQGDQGEXLOGLQJV ZRUWKRYHU 5VFURUHZKRVHPDUNHWYDOXH ZLOO EH D PLQLPXP ILYH WLPHV PRUH  DFUHV RI ODQG DQG EXLOGLQJ ZLOO EHWUDQVIHUUHGWRWKH&RPELQHG$LUOLQH IRU XVH IRU WZR \HDUV DQG DERYH &RPELQHG$LUOLQHZLOOQRWJHWWKHFRU SRUDWHRIILFHLQGRZQWRZQ'HOKLEXW FDQXVHLWIRUWZR\HDUVDQGPRUH

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

15


COVER STORY

air india disinvestment

shall be further adjusted to account for material business developments post March 31, 2017, for instance purchases/ delivery of aircraft etc.” Hence, slightly less than half the liabilities were transferred to the Combined Airline, which was put on the block. Some critics argue that if debt had to be included as part of the sale, it was more prudent to include the entire liabilities. As Ahmed Patel, a Congress politician tweeted, “Shocked to hear the terms of the Air India privatisation. Govt will sell 76 per cent equity but will retain 52 per cent of the company’s debt? Isn’t this a complete sell out designed to benefit certain private agents?” ***** depressing feeling that Air India’s privatisation is deliberately or otherwise structured to favour buyers can be gauged from other parameters in the PIM. Let’s see how the government has determined the transfer of a few properties as a part of the initial strategic sale. According to the PIM, 21.5 acres at Delhi and Mumbai airports will remain with the new entity. This includes LMD Hangar (Mumbai), Hangar No. 4 (Delhi), Air India Complex (Santa Cruz, Mumbai), and Building Complex, Delhi Airport.

A

16

gfiles inside the government vol. 12, issue 1 | April 2018

Although Air India’s corporate office (Airlines House) in Central Delhi will not be a part of the sale, the new buyer will have the right to use it. What is strange is really the clause related to the ‘period’ of usage of these properties. The PIM states that fixed assets identified as “core”, or the 21.5 acres, can be used by the new owner for “a period of two years or more”. She will also be entitled to the “right of use of the corporate office in New Delhi (Airlines House) for a period of two years or more”. When these two clauses were shown to bureaucrats, who are skilful at drafting

The most financially repulsive aspects of Air India, and its subsidiaries, is the huge debt. As per the PIM, Air India’s non-current and current liabilities, including long-term loans and short-term loans, were `65,800 crore in 2016-17, of which the debt component was over `48,800 crore

policies, their faces lit up. They said, “It implies that these properties can technically remain with the buyer forever—10, 15, 20 or 25 years, who knows!” One of them explains, “The government should have specified a period for the usage. By keeping it open-ended, it has kept a huge door open for the new buyer to appropriate these properties. Remember what happened in the case of the strategic sale of VSNL to the Tata Group.” Just to remind readers, VSNL was sold to the Tata Group in early 2002. Prior to the sale, the telecom monopoly had excess cash and 770 acre of land, most of it in prime locations. The government rightly decided that such liquid assets should be taken out of the company before being put on the auction block. So, the government paid a huge dividend to itself to reduce cash, and decided to separate the 770 acres, whose entire proceeds would go to it. It was perfect in theory. In practice, though, there was still too much cash with the sold VSNL and, post-sale, the 770 acres continued to be owned by the company, i.e. the new owner. From 2002, 16 years have gone by. VSNL, Tata Group, and the various agencies of the several governments since then are still arguing about how to separate the land from the company. Certain sections of government blame the Tatas who, in turn, blame other government departments, and the merrygo-round continues. Vague clauses like the owner can use properties for “two years or more” are sure to invite similar problems in the case of Air India. All the properties that are being clubbed into the Combined Airline are prime and crucial, and have enormous price tags. They may be sold for free. ****** In the recent past, sadly, Air India has continuously bungled with real estate deals, which were allowed by the government. Let’s look at some of the properties

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


that were auctioned, and the prices that they fetched. A 1-acre property in Coimbatore was sold to National Buildings Construction for `20 crore. Two years later, in February 2018, a 13-acre property in a more expensive Chennai (Mount Road) was sold for a mere `97 crore. The latter area was 13 times larger, and its price just five times higher. The Chennai deal was inked with the external affairs ministry. Sources in Air India maintain that the low price in Chennai was due to a slump in the realty sector. Insiders contend that it was a government-to-government transaction that was deliberately understated. Even when Air India sold its properties to private players, which requires Cabinet sanctions, the prices were low and disappointing. For example, six flats on Mumbai’s posh Peddar Road were sold for a mere `22 crore each. There are two aspects to this sale. The six flats were sold in two batches of four and two. In both cases, the prices were the same—`88 crore for the first group, and `44 crore for the second, or average of `22 crore. This definitely smells, if not stinks, of a cartel in operation, and either a deliberate or careless attitude on part of the seller not to notice it. To give another context, Peddar Road is one of the main roads in Mumbai, and

www.indianbuzz.com

lies parallel to Altamount Road, which houses Mukesh Ambani flashy Antila, speculated to be most expensive real estate in the world after Buckingham Palace. Some of the properties in Altamount Road would fetch higher prices than what Air India got for its Peddar Road flats. Other deals too indicate the actions of cartel(s). For the past several years, Air India has tried to sell 14 apartments at Mumbai’s Pali Hill, another post and expensive locality. The auctions were postponed a few times because the bids didn’t cross the reserve price of `200 crore. Sources contend that one of the highest bids was `150 crore by a top Bollywood actor.

A

CCORDING to real estate experts, the 14 apartments are worth `5,000 crore. However, several reasons are put forth to suggest lower prices. One of them is that the apartments fall under the coastal regulation zone. If true, it can easily be corrected through discussions with the municipal bodies. If the flats at Pali Hill are sold cheap, similar properties in Delhi (airline colony at Vasant Vihar, and office at Baba Kharak Singh Marg), and Hong Kong are likely to go under the hammer at ridiculously-low prices in the near future.

The fact is that the way Air India’s noncore fixed assets, including land and buildings, are sold in the near future will be critical to determine whether the government can maximize its profits. As on March 31, 2017, the gross value of “land and buildings” of Air India, i.e. only the parent, was almost `9,300 crore. Even a common man on the street can figure out that they can easily fetch, if sold smartly, a minimum five times this amount. It will be enough to repay the existing long- and short-term loans of Air India. If the government can whip up interest among the potential buyers, and bring in healthy competition, the final prices can be higher. ****** Clearly, there is a huge locked-in wealth in the assets of Air India, and its various subsidiaries. It’s now for the government to unlock them in a manner that can fetch tens of thousands of crore of rupees. Unfortunately, the manner in which the strategic sale of the Combined Airline is being pursued as a first step, the future seems bleak. Air India seems to be on the path of value destruction, rather than value creation. Gordon Gekko would be turning in his grave, if he isn’t alive. He could have done this right. The government can too, if it so wishes. g

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

17


COVER STORY disinvestment review

Public loss, private gains

$OWKRXJK3UDGLS%DLMDO¡VERRN³'LVLQYHVWPHQWLQ,QGLD,/RVHDQG<RX *DLQ³LVDGHFDGHROGLWLVVWLOOUHOHYDQWEHFDXVHWKHGHOLEHUDWH PLVFRQFHSWLRQVWKDWKHZRYHDUHVWLOOLQYRJXHZLWKLQWKHJRYHUQPHQW E\ ALAM SRINIVAS

A

civil servant, generally, is a Master (pardon the gender bias) of Manipulation. She (bias corrected) is, generally, adept at the art of using arguments, sometimes bizarre and sometimes inept, to convince her critics. This is beautifully done in Pradip Baijalâ&#x20AC;&#x2122;s book, Disinvestment in India: I Lose and You Gain. He was associated with the disinvestment process for over a decade (1993-2003), as the secretary in the disinvestment ministry, and was well-known,

18

gfiles inside the government vol. 12, issue 1 | April 2018

along with his minister, Arun Shourie, during NDA-1â&#x20AC;&#x2122;s regime for a string of controversial â&#x20AC;&#x153;strategic salesâ&#x20AC;?. Although Baijalâ&#x20AC;&#x2122;s tome is a decade old, it is still relevant because the deliberate misconceptions that he wove are still in vogue within the government. This is amply clear from the ongoing privatisation of Air India, which will be sold as four separate corporate entities to private buyers. The twisted logic to sell the stateowned airline is as convoluted as the one given years ago when public sector companies such as Bharat Aluminium (Balco),

VSNL, Hindustan Zinc and individual hotels of ITDC and Hotel Corporation were sold. The process involves the officials and ministersâ&#x20AC;&#x2122; ability to suavely set aside established economic norms, notions and conclusions. It includes the necessity to quickly, quietly, and skilfully change the goal posts as and when required. It imbibes the talent to confuse and obfuscate, and sometimes throw up their hands in frustration that this is what they were asked to do. The fact remains that the procedure continuously, and effectively,

www.gfilesindia.com   KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH


throws up new questions even as the policy makers fail to answer the old ones. Experts seem to believe that auctions and bidding are the best way to sell assets through strategic sales, where the ownership shifts from the sellers to the buyers. This isn’t strictly true as, like any other process, auctions can be rigged, fixed and manipulated. In fact, Air India offers an example of the flaws in auctions. In addition, there are other components of the process, which are fiercely debated among the proponents and critics. Let’s discuss three issues related to strategic sales (aggressively pursued by the Baijal-Shourie duo) raised in the book, and dissect the fallacies, which are delicately and shrewdly intertwined with half-truths. These include the reserve price, i.e. the floor price below which a company or an asset isn’t sold, valuation, i.e. the price paid by the buyer, and the changing perceptions among the new investors, including majority private owner and other shareholders, on the company’s future worth after the initial strategic sale.

Reservations over reserve price Baijal feels that the issue of reserve price is almost irrelevant, and shouldn’t be part of the privatisation equation. The price has no relation whatsoever to the price paid by the buyer, and is “just a benchmark fixed for evaluation of bids as the Supreme Court also in this case has clearly laid down”. He justifies, “Tenders are awarded in government everyday at 130% or 175% of the known and announced reserve price and sometimes at below reserve price due to competition, but no one questions the reserve price.” But such subjective observations, and legal precedents, cannot, and should not, be used to negate the importance of reserve price. Even an undergraduate student of economics, in India and

www.indianbuzz.com

globally, knows about the significance of a floor price. Various international researches, especially since the growing use of Internet since the late 1990s, have concluded that a reserve price does have crucial implications on the final price paid by the bidders. It is now conclusively established that a lower reserve price enhances competitions in auctions, but lowers the final price paid for an asset. Logically, a higher floor price maximises the seller’s revenues. However, this happens only if the asset is sold because the former can reduce the number of participating bidders. In fact, the fixing of reserve price isn’t subjective or irrelevant, but a crucial component of an auction’s arithmetic.

F

OR economists and governance experts, the floor price provides noteworthy insights into the mindset of a seller, be it an individual, government, or a company. For example, several decades ago, when the Margaret Thatcher’s government sold British Telecom in a seminal case of privatization, the sale price was deliberately kept low. The logic: Britain sold the shares in the open market, and wished the buyers, especially the

small investors, to benefit from the possible increase in post-sale valuations. In the same vein, a higher floor price indicates the seller’s wish to maximise profits.

Value behind valuations In fact, the fixing of the floor price is an objective exercise, compared to the valuation, i.e. the paid price, which is subjective, and can be completely skewed as if pulled out of thin air. Baijal acknowledges this, although his aim is to demolish the concept of valuation. He writes that there is no precise science of valuation, which is largely based on the buyer’s “perceptions, future business assumptions, discount rates assumed and risk perceptions”. “At best, valuations can only serve as a benchmark for decision making. Ultimately, valuations can only be determined in the market place by competitive bidding,” he writes. These issues are evident in global takeovers, including those in the most-developed nations in North America and Europe. During a bidding war, or in the case of hostile takeovers, valuations hop, skip and jump for no reasons whatsoever. After all, on what basis does a bidder hike his offer price by 100200% within days and weeks? Let’s revisit the most high-profile and expensive global acquisition made by an Indian in 2007 – the Tata’s takeover of European Corus (steel) for $12.1 billion. According to a newspaper column, “Corus was then (in the early 2000s) a penny stock and available for 10% of the value that Tata Steel eventually paid for it.” If this wasn’t enough, the Tata Group finally paid 30% higher than the original “negotiated price” announced by it. The reasons for the latter development were several. Other bidders, notably Brazil’s CSN, entered into the fray, which allowed the Corus management to opt for an auction, instead of a direct sale to the Tata Group. The resultant bidding war, according to insiders, became a

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

19


COVER STORY disinvestment review

“personal” and “ego” issue for Ratan Tata. This forced him to bid aggressively. As the earlier-mentioned column said, “Now, participating in an auction is akin to a frog in boiling water. Since prices move up only marginally, the impact is often hard to gauge, and before you know it, you could end up getting scalded.” Like a true civil servant, who tries too hard to convince critics, but uses flawed logic, Baijal ends up getting burnt. His arguments are twisted and knotted in his contradictory reasoning. For, he uses the figures for valuations to justify how the privatised state-owned entities later gave huge returns to their shareholders, including the new and past (government) owners. Post-disinvestment, the share prices of most companies went up, and Baijal deems this to be the pinnacle of the process’ success.

PSU versus PSU versus private giant So, how does Baijal explain the reduction in the share prices in several cases? Well, isn’t it obvious—of course, the winning bidders overpaid? Hang on, by the same logic, doesn’t it imply that in cases where the scrip prices moved up, the private buyers underpaid? Not so to Baijal, who gives seemingly-contradictory reasons to justify his ministry’s policies. Let’s consider the two tales of IPCL and IBP. A state-owned energy giant, Indian Oil, was partly interested in the first, which went to Reliance Industries, owned by Mukesh Ambani. IOC successfully purchased IBP. Even before the petrochemicals major, IPCL, was put on the block, the buzz was that the Ambani clan – at that time the patriarch, Dhirubhai, was still alive and his two sons hadn’t split—wouldn’t let it go out of its clutches. However, while the disinvestment process was on, IOC put a spanner in the wheel. It showed its keenness to buy the Baroda unit of

20

gfiles inside the government vol. 12, issue 1 | April 2018

Baijal feels that the issue of reserve price is almost irrelevant, and shouldn’t be part of the privatisation equation. The price has no relation whatsoever to the price paid by the buyer, and is “just a benchmark fixed for evaluation of bids as the Supreme Court also in this case has clearly laid down” IPCL “on account of their refinery’s integration with this unit, to which the government agreed”.

U

nfortunately, the “tortuous negotiations” between the two parties couldn’t be finalised because of the difference in value perception. IOC said it was worth `300 crore; IPCL claimed the price to be `1,200 crore, or four times higher. According to Baijal, this was an example of the illogic of valuations. “The difference in perceptions of the two set of advisors and companies was so huge that valuations differed by 1:4,” he writes. And then gleefully and sarcastically adds,

“So much for concepts of valuation, so meticulously commented upon by various inquisitors in their reports....” In hindsight, Reliance Industries may have overbid as it was desperate to lay its hands on IPCL. An article in 2002, when the sale culminated, analysed, “After a short while, chairman and patriarch Dhirubhai Hirachand Ambani joined the brothers (Mukesh and Anil, who were in a meeting to decide the bid price). He scrutinised the figures and then gave the brothers a brief message in a sombre tone: Reliance is known for winning. But, today doubts are being cast over our ability to win (after losing out in the race to acquire

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


Strategic sales were aggressively pursued by Baijal and his minister Arun Shourie (above). The fallacies, are delicately and shrewdly intertwined with half-truths in the book. These include the reserve price, i.e. the floor price below which a company or an asset isn’t sold, valuation, i.e. the price paid by the buyer, and the changing perceptions among the new investors, including majority private owner and other shareholders, on the company’s future worth after the initial strategic sale IBP and VSNL).... We have to get back to our winning ways.” Reliance paid `231 per share, or almost `1,500 crore for a 26% stake. It valued the company at almost `6,000 crore; in retrospect, IPCL’s asking price of `1,200 for its Baroda unit from IOC seems fair. After this deal, IPCL’s price slumped; almost two years later, the government sold a part of its shares to the general public at `170 per share. Even four years after the Ambanis bagged IPCL, the scrip price

www.indianbuzz.com

hovered around `250, despite an over four-fold increase in annual revenues, over seven-fold hike in annual profits.

W

HEN it came to the sale of IBP, an oil marketing company, which was taken over by IOC, the post-disinvestment share price slumped – from the market price of `570 prior to the sale – the buyer paid `1,551 per share – to `230 a few months later. “The competitors in IBP had quoted a

much lesser price – almost half. The loss to the exchequer in this case, due to the misjudgement of IOC, under the watchful eye of a secretary in the ministry and a present-day inquisitor, runs to more than a thousand crore....” Now, let’s look at the scenario described above, where the post-sale scrip prices shot up. A majority (51%) stake in CMC was sold to the Tata Group at `197 per share. Later, the government sold another 26% to the public at `485, a jump of almost 2.5 times. “The higher price in the market... recognised the strength of Tata’s majority ownership, and also an expectation that ultimately CMC would be merged in Tata Consultancy Services,” explains Baijal. Still, the Tatas paid a fair price for CMC. One can see the fuzzy, blurry logic. In the case of IPCL, Reliance paid a ‘fair’ price, as the future valuation remained almost the same. In the case of IBP, when the future worth slumped, IOC overpaid for the company. But the real, and clouded and confused, issues arise when Baijal analyses public sector units, whose valuations jumped after the strategic sales. In the case of CMC, Baijal doesn’t think that the new owner underpaid, even though one needs to logically assume it if one accepts that the buyer overpaid for IBP. Baijal is clearly going around in circles, sometimes clockwise, and other times anti-clockwise. One isn’t sure what Baijal wishes to prove. Are valuations for real or just benchmarks? If the former, an overbid also implies an underbid in another case – if IOC paid more for IBP, the Tata Group paid less for CMC. Doesn’t this imply that the government could have got more in the latter case? Should the government be merely interested in selling off public assets at any price, without bothering about reserve prices and valuations? Should it focus on maximising the prices from the sales of its crown jewels? g

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

21


GOVERNANCE oil pricing

E\ RAVI DEKA

I

N December 2016, India’s apex environmental body Environment Pollution Control Authority (EPCA) released a 14-page study about the ill-effects of Furnace Oil (FO or HFO) and petcoke on the air quality of NCR region, entitled “Mandating acceptable fuel to be used in NCR for air pollution control”. The EPCA body comprises of members from civil services, academia, industry and NGO representatives, among them being Sunita Narayan, Director General Centre of Science and Environment (CSE), India’s leading environmental NGO that made the highly publicised findings of pesticide residues in popular aerated drinks.

The

sources are secondary particles, which are emitted from vehicles, power plants and industries. Any fuel, which is high in sulphur will also have heavy metals, which will add to contamination of the environment.” But without providing the percentage of sulphates present in the particulate matter. It doesn’t really take an environmentalist or a chemist to discern that the statement is a gross oversimplification, to say it mildly. Though sulphur-derived SO2 and SO3 are potent pollutants and greenhouse gases, as are solid sulphates, the fact remains that most of the particulate matter (PM), both PM 10 (10 microns size) and PM 2.5 (2.5 microns size) suspended in Delhi’s air are composed of microscopic particles of soot (unburned carbon), ash and dust with only the secondary particles having traces of sulphates. The 334-page IIT Kanpur report, titled “Comprehensive Study on Air Pollution and Green House Gases (GHGs) in Delhi”, used by the EPCA to justify their claims, does indeed say that the main sources of pollution during winter in Delhi are secondary particles (25-30 per cent), but also includes PM from vehicles (20-25 per cent), biomass burning (17-26 per cent), municipal solid waste burning (9-8 per cent) and soil and road dust. Sources of pollution during summer include, coal and fly ash (37-26 per cent), soil and road dust (26-27 per cent), secondary particles (10-15 per cent), biomass burning (7-12 per cent), vehicles (6-9 per cent) and municipal solid waste burning (8-7 per cent). The IIT report clearly mentions, “It was observed that SO2 concentrations were low and meet the air quality

fuel dilemma

The Reports The EPCA report on the atmospheric effects of FO and petcoke combustion, contrary to the CSE publications, was surprisingly amateurish, almost a cut and paste job that steered away from providing any hard numerical data, sources or analysis. It focused solely on evangelising the ill-effects of sulphur present in the two most used industrial fuels, FO and petcoke. The second paragraph of the report claims that “The key contaminant in fuel that is responsible for high levels of pollution is sulphur—this is emitted in the form of particulates and also in the form of gas, sulphur dioxide (SO2). Depending on the level of moisture in the air, gas gets converted into particles. These ‘secondary’ particles are a key source of air pollution in Delhi/NCR. According to the IIT-Kanpur report, as much as 25-30 per cent of the winter

22

gfiles inside the government vol. 12, issue 1 | April 2018

The industry and the government shot themselves in the foot with the ban on furnace oil and petcoke, which only resulted in shutting down of units. The answer lies somewhere else—in finding cheaper alternatives to gas

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


standard,” (on pages 24, 38, 51, 65, 78, 91, 105) with regards to six locations in the region where air samples were drawn in summer and winter. Incidentally, figures released by the Central Pollution Control Board (CPCB) also show that the SOx (sulphur oxides) figures in the NCR region were well within limits. With regards to sulphates in secondary particles, the IIT report lays the blame squarely on petroleum refineries and thermal power stations located in the periphery of the NCR region. “What are the sources of secondary particles, the major and consistent contributors to Delhi’s PM? These particles source from precursor gases (SO2 and NOx), which are chemically transformed into particles in the atmosphere. Mostly, the precursor gases are emitted from far distances from

www.indianbuzz.com

large sources. For sulfates, the major contribution can be attributed to large power plants and refineries. The prevalent wind from north-west and south-east can bring in the secondary sulphates and nitrates from large power plants and refineries almost from all sides in Delhi.” (Page 275-276)

T

HE report further suggested a complete ban on municipal waste burning (MWB) and switching to low sulphur automotive fuels, the need to impose emission controls in industries to reduce PM from industrial stacks and the need to monitor NOx levels. But nowhere does it indicate Petcoke or FO as the main culprits for the Capital’s terrible air quality. Actually the report doesn’t mention the two fuels at all.

What is most surprising in the EPCA report is that it largely glosses over the role of NOx, which is produced by every kind of combustion from industrial to vehicular, even if using the cleanest fuels, and is one of the key compounds responsible for the formation of smog, photochemical smog and acid rains. In short, the EPCA report makes no secret that its clear-cut agenda is: Ban the usage of Petcoke and FO in the entire NCR region and force the Industry to convert to Natural Gas. Residents of Delhi would remember that during both autumn 2016 and 2017, when dark smoke and smog enveloped the capital bringing life to a standstill, the dominant smell in the air was not of sulphur but that of burning vegetation with an acrid tinge. The former was the smell

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

23


GOVERNANCE oil pricing

of unburned carbon and volatile organic carbon from the agricultural stubble set on fire in the surrounding areas, the latter caused by a potent chemical soup of methane (CH4), carbon monoxide (CO), nitrogen oxides (NOx) and other aerosols of creosote and silica. The smell of sulphur and sulphurous compounds can be experienced mostly in areas that burn coal, especially nearby coal-burning thermal power stations or industries with coal-fired boilers, irrespective of how many pollution control equipment they have installed.

The Aftermath By February 2017, the Supreme Court got into fray and asked the concerned governments of Rajasthan, Uttar Pradesh, Punjab and Haryana to pull up their socks and act on the recommendations of EPCA in banning FO and petcoke, as Delhi had already banned all high sulphur fuels in 1996. In October 2017, the Supreme Court without much ado passed a ruling banning the usage of both the fuels in the entire NCR region and further extended the ban to encompass the entire territories of the concerned States. The ban virtually paralysed the entire manufacturing sector of the four States overnight due to the lack of fuel, as the only economical alternative—though it was still about 25 per cent more expensive which could be used immediately in place of FO—was Light Diesel Oil (LDO), while both Piped Natural Gas (PNG) and Liquid Petroleum Gas (LPG) were 3-4 times more costly and required expensive refitting of pipelines and burners. In the case of PNG, additional factors like availability of gas in a particular area, pipeline connectivity and supply contracts also play a major role for the conversion of a plant, and at a considerable expenditure. In no time the refineries ran out of LDO as none manufactured it in sufficiently large volumes. Hence, they were

24

gfiles inside the government vol. 12, issue 1 | April 2018

unable to meet the sudden spike in demand. The combined average monthly production of LDO in all Indian refineries is about 37,000 metric tones while that of FO is about 600,000 metric tonnes. Within a week, manufacturing in the SME sector almost ground to a halt. Companies that fired petcoke in their furnaces and boilers, were left with no alternative but to fish out their old liquid fuel burners or buy new ones.

A

SSOCIATED Chambers of Commerce and Industry of India (Assocham) claimed that close to a 1,000 industrial units had temporarily closed down and over a lakh were affected by the ban, leaving 25 lakh workers jobless. By December end the Supreme Court relaxed the ban partially for thermal power plants and cement plants, but a comprehensive solution for the industrial fuel problem is yet to be found. LPG and PNG, despite being cleaner fuels, are much costlier and their usage in industries where fuel comprises a major chunk of the manufacturing costs, as in the case of iron and steel, makes them non viable.

Push for Gas If viewed benignly, the EPCA report and the subsequent Supreme Court action can be interpreted as knee-jerk reactions to the perennial problem of poor air quality in the Capital, further aggravated by the terrible winter fog-turned-smog, the burning of stubble and the pollution caused by crackers and fireworks during Diwali. But a critical appraisal of the report and its aftermath can only be interpreted as blatant arm-twisting of the entire manufacturing industry into switching over to Natural Gas, something that India produces very little and is imported in the form of Liquid Natural Gas (LNG). Today LNG comprises about 6.5 per cent of country’s energy mix and 19.7 million tonnes of it was imported in 2016, making India the world’s fourth largest buyer. In 2015, the government-owned Petronet successfully renegotiated a longterm import of 7.5 million tonnes of LNG from Qatar’s RasGas. Last year it convinced Exxon Mobil Corp to reduce prices of LNG from the Gorgon project in Australia. More recently, GAIL had also renegotiated for lower prices for its

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


long-term Sale and Purchase Agreement of up to 2.5 million tonnes per year with Russia’s gas giant Gazprom, which was signed in 2012 with supplies starting from May 2018. It is probably pertinent to recall that import, sale and distribution of Natural Gas is also one of the core business interests of the Adani Group, which with its recent joint ventures with State-owned companies has formed an almost monopolistic gas combine. In 2016, Indian Oil Corporation and GAIL signed an agreement to purchase a 49 per cent stake in Adani Group’s `6,000-crore Dhamra LNG project in Odisha. In August 2017, the IOC board approved acquiring up to 50

per cent stake in Adani Group-backed Mundra LNG import terminal in Gujarat for an estimated `750 crore. So, by imposing a blanket ban on the two cheapest industrial fuels in the four industrial northern States, whether by accident or intent the government through EPCA recommendation and the Supreme Court ruling has provided a huge and ready captive market to the newly formed gas cartel. Further, the EPCA in its advocacy of the ban has been reticent about the fact that India, thanks to her huge refining capacity, produces copious quantities of petcoke and FO as they are the inescapable by-products of the petroleum refining process. Neither have they mentioned what to do with resultant stockpile of these fuels as Indian Oil refiners produced over 11.7 million metric tonnes of FO and 12.9 million metric tonnes of petcoke in 2016-17.

Dirty Fuels, Dirtier Emissions On the other hand, one cannot absolve the Indian manufacturing industry, especially the SMEs, from their role in leading to such a situation. For decades, virtually the entire Indian SME industry had blatantly flouted all atmospheric and effluent discharge pollution norms, both with and without the connivance of the officials of various government pollution control boards. Most of their pollution control equipment was just decorative, at the most working intermittently only

during day to save on electricity. Private agents appointed by the pollution control boards came monthly, collecting cash envelops and in turn providing reports with immaculate readings. Meanwhile, waste was disposed off by contractors in unauthorised landfills or just by the side of the road. The fuel of choice is invariably selected solely on principle of “the cheapest is the best” and most industries supplement their purchases from refineries with those provided by generic oil traders who, in turn, supply various petrochemical concoctions containing anything from marine waste oil to used engine oil, stolen crude, chemical waste, pitches and a motley collection of ingredients, together constituting what goes by trade monikers like ‘Campa, Pit Ka Maal’ or simply ‘Palti’. Fuel transporters too had a field day moonlighting as adulterators as virtually no fuel ever reaches the destination without some amount of pilferage or mixing. The last decade also saw extensive usage of an oil derived from the pyrolysis of used tyres known as Tyre Oil, which matched the characteristics of LDO except that it is full of solvents like benzene and a host of other carcinogenic agents. The plants extracting it are themselves immensely polluting, contaminating the ground with carbon wastes and discharge effluents, and the air with noxious leakages from the pyrolysis unit.

The Economics of Gas

Though sulphur-derived SO2 and SO3 are potent pollutants and greenhouse gases, as are solid sulphates, the fact remains that most of the particulate matter (PM), both PM 10 (10 microns size) and PM 2.5 (2.5 microns size) suspended in Delhi’s air are composed of microscopic particles of soot (unburned carbon), ash and dust with only the secondary particles having traces of sulphates

www.indianbuzz.com

It is a fact that both FO and petcoke are low grade refinery by-products and relatively dirty fuels when compared to distillates and gas. FO does contain up to 3 per cent sulphur and the figure goes up to 7 per cent in the case of petcoke. FO comprises of residual oils left from the distilling processes, while petcoke is a solidified carbon residue manufactured in refinery coker units and used as replacement of coal due to its higher

KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH  

gfiles inside the government vol. 12, issue 1 | April 2018

25


GOVERNANCE oil pricing

energy content. Both are cheap and hence extensively used by the industry. Simply banning them would do little to clear up the Capital’s air quality but would force many industrial consumers to close shop. As per data released by the Petroleum Planning and Analysis Cell, in the period April 2016-March 2017, Indian refineries produced 11.75 million tonnes of FO and the industry consumed 7.15 million tonnes, the excess being either exported or stockpiled. In the same period, the industry consumed almost 24 million tonnes of petcoke, of which 12.9 million tonnes was domestic, the rest being imported. There is no State-wise consumption data of these two fuels, but considering the large number of industries and industrial clusters in the four northern States where they have been banned, it wouldn’t be wrong to assume that it can be anywhere between 1/3rd to 1/4th of the country’s consumption.

A

S the current price for industrial PNG is approximately `1,000 per mmbtu (million British thermal units) plus taxes (source: Adani Gas website), its kilo calorie (Kcal) cost is about `39 for 10,000 Kcal, or the gross Kcal of 1 kg of FO which costs `30 plus taxes (source: BPCL website). This means a straight 23 per cent hike in prices, not forgetting additional expenses of anywhere between a few lakhs to over a crore for equipment refitting costs for burning gas. When comparing natural gas prices with petcoke—costing about `11 per kg containing 8,000 Kcal—again on the basis of 10,000 Kcal, its a straight increase of Rs.22.50 or 236 per cent hike, plus the additional cost of equipment. Even if we compare the cost appreciation using LDO, which costs about `38 per litre and is in very short supply, the price difference on Kcal basis with FO and petcoke is Rs. 4

26

gfiles inside the government vol. 12, issue 1 | April 2018

and `20, respectively. The ham-fisted approach of demanding a blanket ban on the two cheapest industrial fuels may seem justifiable to environmentalists and learned judges, but the fact remains that all LNG is imported, is expensive, requires extensive and expensive retrofitting of equipment, which many companies may simply not be able to afford and, best of all, is not even available everywhere. Ecologists and clean air advocates may argue that the increase in fuel cost is a small price to pay for health and clean air, but for most of the industries already reeling in recession, this strikes a deadly blow if not the death knell. A more grounded approach for the EPCA and the Supreme Court would have been learning from International Maritime Organisation (IMO), which is enacting its 2020 global sulphur limit for ships by specifying PM, NOx and SOx

emission limits without banning or recommending any specific fuel, but with strict monitoring and enforcement.

A Ready Solution In its zeal to ban FO and petcoke and promote natural gas, EPCA completely ignored the existence of mature and timetested fuel modifying processes like FuelWater Emulsification and Fuel-Water Slurries that enhance combustion and also drastically reduce emissions from PM to CO, NOx and SOx. Both are technologies that can be implemented at minimum cost with little or no appreciation in the final fuel price. FO can be easily emulsified and petcoke can be converted into a Carbon Water Slurry (CWS) fuel. Numerous studies from around the world—from the Environmental Protection Agency (EPA) of the US to the Kobe and Kanagawa Universities of

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


oil compared to the base oil.” Emulsification of FO slightly reduces SOx emission, though the process can be enhanced to reduce levels even further by adding certain proprietary chemical formulation into the emulsion.

Japan—attest that emulsions burn much cleaner than stock fuel. The EPA study on emission factors of Fuel Oil combustion stated that emulsification of No 6 Fuel Oil (equivalent to our FO) with 9 per cent water, reduced NOx by 41 per cent, CO by 33 per cent and PM by 45 per cent. Another EPA study says “The CO emission factor was 24 per cent lower for the emulsified oil compared to the base oil, the NO emission factor was 35 per cent lower for the emulsified oil compared to the base oil, and the PM emission factor was 38 per cent lower for the emulsified

T

HE CWS technology had been extensively developed during the 70s and the 80s, but was largely sidelined when oil prices came down. Today the technology is widely used in coal gasifiers and in niche segments as a replacement for FO at a much lower price. Combustion of CWS reduces NOx emission between 35-40 per cent and PM by 30 per cent. SOx levels emissions of petcoke CWS can be partly reduced by mixing special sorbent materials during preparation and by attaching a wet scrubber to the exhaust duct to further clean the gas. The process can be undertaken in

In its zeal to ban FO and petcoke and promote natural gas, EPCA completely ignored the existence of mature and time-tested fuel modifying processes like Fuel-Water Emulsification and Fuel-Water Slurries that enhance combustion and also drastically reduce emissions from PM to CO, NOx and SOx www.indianbuzz.com

centralised locations where FO and petcoke is procured from refineries and converted into Emulsified FO and CWS under strict quality control so that the end product meets the set emission norms upon combustion, and shipped in tanker trucks to the end client. This way, the industrial fuel consumers would be spared the cost of purchasing the Fuel Emulsifying or CWS equipment, thus saving them a considerable investment. It would also ensure that the units doesn’t lie idle or underperform like in the case of most pollution control equipment. Besides, they won’t have to increase their fuel expenses and cost of production by converting to gas, nor invest in gas burners and ancillary equipment. Though the emission may not be as clean as in the case of Natural Gas, there would still be an average of 40 per cent less PM and NOx with a considerable reduction in CO, CO2 and SOx. At the same time, the country reduces its import burden of LNG and gets to utilise its entire FO production without having to export it at a discount. All that is required is for the government to set emission norms for NOx, PM and SOx and to declare that the only way to use FO or petcoke as fuel is to emulsify or convert it into CWS. g

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

27


GOVERNANCE taxation tn pandey

Regulating wealth 7KHWD[FXWRISHUFHQWJLYHQWRFRUSRUDWLRQVZLWKXS to `FURUHDQQXDOWXUQRYHUQHHGVWREHFRQWUDVWHG ZLWKWKHQRUDWHUHGXFWLRQWRRWKHUWD[SD\HUVPRVWO\LQ WKHORZHUDQGPLGGOHLQFRPHJURXSV

W

HEN US President Donald Trump announced a reduction in corporate tax rate from 35 per cent to 21 per cent, there was almost universal clamour in India for getting similar reduction during the budget exercises of 2018. Ultimately, the corporations succeeded in getting corporate tax rate reduced from 30 per cent to 25 per cent for companies having an annual turnover of up to `250 crore, which comprised 99 per cent of the total corporate strength in tax net, leaving the tax structure for individuals and others untouched. However, it is regrettable that none of the high-income group taxpayers in India have ever echoed the sentiments of US billionaire and Microsoft founder, Bill Gates, when he says that he wants to pay more taxes. His desire is that not only he should pay more in taxes, the Government should require other super wealthy people, like him, to also contribute ‘significantly higher taxes’. He said this in thee co context te t hich he of the Republican tax bill, which nd felt did not consider progressive and that the biggest benefits from this his will be felt by the super rich despite ite the Government’s insistence that tax ax cuts would help America’s workingg and middle classes. And his fears have proven correct by the statementt of another US billionaire, Warren Buffet. According to a news report, Berkshire Hathaway, the holding company of Warren en

28

gfiles inside the government vol. 12, issue 1 | April 2018

Buffett, received a stunning $29 billion check last year from the US Government because of a new law that massively lowered corporate tax rates. In his annual letter to shareholders, Buffet explained that the company’s net gain of over $65 billion in 2017 was only partly due to his employees’ efforts. Only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to company in December when Congress rewrote the US tax code. Many other major companies also booked significant fiscal gains because of tax reduction. In India, the tax cut of 5 per cent given to corporations with up to `250 crore annual turnover needs to be contrasted with the no rate reduction to other taxpayers mostly in the lower and middle income groups. The Finance Minister, during the 2018 budget exercises, proclaimed restoration of Standard Deduction for salaried employees (arbitrarily and wrong-

fully withdrawn by Chidambaram) to the extent of `40,000 for employment-related expenses, but in the same breath, withdrew deductions already available to them to the extent of `34,800 in the form of conveyance and medical allowances, reducing the Standard Deduction to merely `5,800 and that too got wiped off by an increase of 1 per cent in the cess rate. And, he has done this to a group of taxpayers, whom he described in his budget speech as better taxpayers vis-à-vis businessmen and professionals, who reduced their tax burden by claiming host of expenses (real and notional). For AY 2016-17, the 1.89 crore salaried taxpayers contributed `1.44 lakh crore to the country’s exchequer as against merely `44,000 crore from business and professional taxpayers (this works out to just `25,753 per individual taxpayer in this category). The Finance Minister cannot be said to be just and fair to honest salaried taxpayers. The impact of such tax p policies wass p summed up by the head of Oxfam India in her press statement when she, on the basis of two reports this year in January and February 2018, said: “The billionaire boom is not a sign of thriving economy but a symptom of failing

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


economic system. Those working hard… are struggling to find their children’s education, buy medicines…and manage two meals a day. The growing divide undermines democracy and promotes corruption and cronism.” The two Oxfam reports and the Forbes 2018 Rich List recently published show the imbalance in income and wealth. Clearly, inequality is growing at a staggering rate and the poor all around the world, including in India, find practically no change in their fortunes or living conditions. The Oxfam reports show that 82 per cent of the wealth created in 2017 went to 1 per cent of the global population while 3.7 billion people, who made up the poorest half of the world saw no increase in their wealth. The position in India is equally bad. In 2017, India added 17 new billionaires taking their number to 101. Forbes shows that this number has increased to 119 in 2018. The increase in the wealth of the richest 1 per cent Indians in the last 12 months is equivalent to the Union budget for 2017-18. This 1 per cent of the Indian population possesses 73 per cent of the country’s wealth and resources. The figures mentioned in Oxfam’s reports have not been challenged by any one so far. Though the disproportion of the kind stated earlier cannot be attributed merely to tax laws and policies. The reasons for the highly disproportionate growth in India can be attributed to the following decisions of the Government from the tax angle: t &YFNQUJPO PG EJWJEFOET GSPN JODPNF tax; t "CPMJUJPO PG &TUBUF %VUZ *OIFSJUBODF Tax); t "CPMJUJPOPG8FBMUI5BY"DU t &YFNQUJPOPGGBSNJODPNFGSPNHSPXing of commercial crops and farm wealth hitherto under the Wealth Tax Act.

www.indianbuzz.com

S

UCH decisions leading to the growth of wealth monopolies need discontinuance since they are anti-progressive, anti-growth measures, limiting GDP and economic advancement. This has, however, not been firmly established by any empirical studies. On the contrary, such arguments have been refuted on fiscal as well ethical grounds. Warren Buffet made a statement few years back that he worked with the investors for 60 years and he has yet to see any one—not even when capital gains tax was 39.9 per cent—shying away from sensible investments because of tax rates.

The increase in the wealth of the richest 1 per cent Indians in the last 12 months is equivalent to the Union budget for 2017-18. This 1 per cent of the Indian population possesses 73 per cent of the country’s wealth and resources Recently, at the Business Global Summit, 2018 (BGS), spiritual leader Sadguru Jaggi Vasudeo, the founder of Isha Foundation, speaking on the topic of ‘Guts, Gumption and Growth’ said that “while growth is intrinsic human nature, it should not come at the cost of others… Growth by accumulation is only sickness.” He called on business leaders to look at growth in a multidimensional way, which is sadly found lacking. At the same Summit, Prime Minister Narendra Modi, inter-alia, stressed the need for ethics for the new India. In the context of income taxation, ethics has two dimensions: ethics by taxpayers and ethics by the Government. Ethics from both sides has failed. The floating of various

income disclosure schemes and enactment of the Black Money Act indicate that, by and large, ethics is not a concern for business people. The recent PNB case, Kothari and other instances only support this view. But, in enabling the concentration of wealth in fewer hands by abolition of Estate Duty and Wealth Tax laws against the spirit of the Constitution (Preamble and Directive Principles of State Policy), the Government too can be held accountable on ethical grounds! It is greatly worrisome that continued growth of wealth in fewer hands and stark poverty exist side by side. Vast sections of population live below the poverty line even by Government fixed standards. Such a situation cannot be considered equitable from any standards. Tax policies are, to a considerable extent, responsible for this. The situation needs immediate correction by (i) withdrawing exemption for dividends; (ii) re-enacting inheritance and wealth tax laws (it may be mentioned that a simple Wealth (Inheritance) Bill was introduced in Lok Sabha in 1989 but it lapsed due to dissolution of the Lok Sabha and obviously, nobody wishes to talk about it since then) and (iii) devising a pragmatic policy towards taxation of agricultural income and wealth. Wide discussion on some aspects mentioned in the Oxfam and Forbes reports is urgently needed. Food for the hungry, jobs for the unemployed and roofs over the heads of poor Indian citizens are the prime needs of the county and the galloping Sensex has failed to provide solutions for these. Hence, realistic measures are called for to tackle the problem of excessive and disproportionate increase in wealth in fewer hands. A Government, which has come to power with ‘achchey din for all’ slogan, cannot remain unconcerned to concentration of wealth in just a few hands to the detriment of the larger populace. g The writer is former Chairman, CBDT

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

29


GOVERNANCE

environment mg devasahayam

8QGHU6DJDUPDODZKLOH ,QGLD·VFRDVWVDUHEHLQJ FRORQLVHGE\WKH FRUSRUDWHFDUSHWEDJJHUV E\JUDEELQJSULPHODQG DQGVXFNLQJWD[SD\HU·V PRQH\LWVHFRORJ\ IDUPLQJILVKLQJDVZHOO DVWKHOLIHDQGOLYHOLKRRG RIWKHFRDVWDOSRSXODWLRQ IDFHGHVWUXFWLRQ AGARMALA (sea garland) project is a humungous â&#x201A;¹8 trillion (â&#x201A;¹8 lakh crore) port-led-prosperity investment initiative of the Government of India (GoI) entailing setting up of over six mega-ports, modernisation of several dozen more ports, development of over 14 Coastal Economic Zones (CEZ) and at least 29 Coastal Economic Units (CEU), development of mines, industrial corridors, rail, road and airport linkages with these water ports, resulting in generation of 150,000 jobs i.e. `5.33 crore per job. This is outrageous in a capital-starved country where maximum jobs should be created with minimum investment. Sagarmala project was originally mooted by the NDA Government in 2003 as waterway equivalent to the Golden Quadrilateral in roadways. The project is aimed at driving industrial development and prosperityby harnessing India's 7,500-km long coastline and 14,500-km of navigable waterways. Under the later UPA governments (I and II), the project received much lesser attention. On March 25, 2015, the Union Cabinet gave approval for this project to develop 12 ports and also 1,208 islands. A National Sagarmala Apex Committee, composed of the Minister of Shipping and cabinet ministers from stakeholder ministries

S

30

gfiles inside the government vol. 12, issue 1 | April 2018

â&#x20AC;&#x2DC;Sagarmalaâ&#x20AC;&#x2122; Corporate Colonising of Indiaâ&#x20AC;&#x2122;s Coast?

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


and chief ministers/ministers in-charge of ports of maritime States as members, will provide policy direction and guidance for the initiative’s implementation and review the progress. A Sagarmala Development Company has been set up with an initial authorised share capital of `1,000 crore and subscribed share capital of `90 crore. The Sagarmala National Perspective Plan was released on April 14, 2016, with details on Project Plan and Implementation. Under this, 415 projects, at an estimated investment of approximately ₹7.98500 lakh crore (US$120 billion), have been identified across port modernisation and new port development, port connectivity enhancement, port-linked coastal economic zone industrialisation and coastal community development for phase wise implementation up to 2035. These projects would be implemented through the Public, Private, Participatory (PPP) mode that has a provision for Viability Gap Funding (VGF). As they are structured today, PPP and VGF are just tools to funnel public money into private hands as these fancy projects are invariably unviable. Fourteen CEZs are part of Sagarmala scheme with the investment of ₹6.5 lakh crore centered around ports. Each CEZ with the area of 2,000 to 3000 sq km will have several Coastal Economic Units (CEU), and, in turn, each CEU will have several Port-Linked Industrial Clusters (PLIC). CEUs serve as nodes within CEZ, each CEU being an industrial estate with multiple industries. Each PLIC within CEU will have several manufacturing units. Proposed mega-ports in phase 1 are: Sagar Island (West Bengal); Paradip Outer Harbour (Odisha); Sirkazhi and Enayam (Tamil Nadu); Belikeri (Karnataka) and Vadhavan (Maharashtra). Enayam megaport, termed as International Container Transhipment Terminal (ICTT) with an investment estimate of `27,750 crore, is in Kanyakumari district. The site has

www.indianbuzz.com

since been shifted to Kanyakumari itself, an internationally renowned destination for tourism and pilgrimage. This is a case study on this project (KICTT), which will have a big bearing on the concept and content of Sagarmala. First a brief history. Kanyakumari is among the smallest districts in the country with an area of 1,684 sq km. Of this, 30.2 per cent is reserved forest. It is also a congested district with a population

These projects would be implemented through the Public, Private, Participatory (PPP) mode that has a provision for Viability Gap Funding (VGF). As they are structured today, PPP and VGF are just tools to funnel public money into private hands as these fancy projects are invariably unviable density of 1,111 persons per sq km. Its western coastline, along the Arabian Sea, is just about 60 kilometres long, having almost all the 11 features of CRZ 1 (extremely eco-sensitive) outlined in Section 7 of the CRZ-2011 notification, issued under the Environmental Protection Act, 1986. These include, mangroves; corals and coral reefs; sand dunes; mudflats; national parks, marine parks, sanctuaries, reserve forests, wildlife habitats and other protected areas, including biosphere reserves; salt

marshes; turtle nesting grounds; horse shoe crab habitats; sea grass beds; nesting grounds of birds; and, areas or structures of archaeological importance and heritage sites. (See Map 1) In this zone all constructions are forbidden under Section 8. The district’s plains host thousands of water bodies, ponds, rivers and streams, fine paddy fields, flower gardens, bird sanctuaries, coconut plantations, spices, herbal plants, banana grooves, livestock and many others. The mountains (Western Ghats) have dense forests and high-quality rubber plantation crops. The pristine district with its vibrant agricultural-horticultural-plantationfisheries-tourism economy is certainly is not the place to have any major infrastructure project, least of all an ultramega-port under Sagarmala scheme! People just don’t want it. HE way this massive project ‘cropped up’ soon after the BJP government assumed power at the Centre in May 2014 is a clear case of crony capitalism. Strangely, the Union Ministry of Shipping, which is pushing the project, liked to call it the ‘Colachel Port at Enayam’. Now it has become ‘Colachel Port at Kanyakumari’.Colachel is a fishing-harbour town on the Arabian Sea with a draft of about 16 metres close to the coastline. Feasibility reports were prepared in 1998, 2000 and 2010 to convert it into a minor/intermediate port. However, in 2013, Parliament was informed that the proposed `2000 crore project has not been found feasible. At that time, bidding process was underway for the `7,600-crore, Kerala government-initiated, Vizhinjam ICTT, located about 45 km northwest of Colachel. Adani Port Group, despite being the sole bidder, was given the concession due to heavy pressure exerted by GoI that too for 40 years (extendable by 20 years) as against the norm of 30 years. Thus, was born the Adani Vizhinjam ICTT.

T

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

31


GOVERNANCE

environment mg devasahayam

0DSMap Showing Coastal Land Use near the Proposed Port Area

Once Adani baggedVizhinjam, and `818 crore (first instalment) VGF cash, things moved at breakneck speed to revive the defunct and ‘infeasible’ Colachel minorport, convert it into an ultra-mega ICTT and locate it at Enayam just 30 km away. To make it happen, Pon Radhakrishnan, the local BJP MP representing Nagercoil constituency, was made Minister of State, Shipping. He in turn moved fast and appointed VO Chidambaranar Port Trust, Tuticorin, as the project proponent. Within months (August 2015) VO C port sourced a ‘Techno-Economic Feasibility Report’ (TEFR) for the project from the Boston Consulting Group (BCG), US, and TYPSA Consulting Engineers and Architects, Spain. massive infrastructure project like this should satisfy five sets of feasibilities—technical, economic, financial, social and environmental. BCG-TYPSA report does not establish

A

32

gfiles inside the government vol. 12, issue 1 | April 2018

Feasibility reports were prepared in 1998, 2000 and 2010 to convert it into a minor/ intermediate port. However, in 2013, Parliament was informed that the proposed `2000 crore project has not been found feasible any feasibility except with impractical/ impossible conditions. Yet, in December 2015, the same consultants were given the task of preparing the detailed project report (DPR). On July 5, 2016, the Union Cabinet gave an ‘in principle’ approval for this project without making any budget provision. This was mainly meant to deceive the public and pressurise a reluctant Tamil Nadu government. Despite a frenzied disinformation

blitz unleashed with several falsehoods— industrialising a pocket-sized agrarian district, no acquisition of land, creation of thousands of jobs, no damage to the coast, no impact on fishers or fishing villages, etc—this `27,750 crore project faced stiff resistance from the people and had to be abandoned. But, instead of quitting with grace, GoI has now shifted the site to Kanyakumari itself! Accordingly, project proponent moved MoEF on November 29, 2017, seeking prior environmental clearance. In the Form (no. 1) filed for this purpose, project proponents concealed almost all the salient features of the Kanyakumari coastal ecosystem. Several critical concerns over the economic, environmental and social impacts of the project have also been suppressed. What is worse the Consultants have blatantly indulged in premeditated fraud. This is evident from the field study done by a professional team. Herewith are the extracts:

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


0DS10 KM Study Area of Proposed Kanniyakumari Port

“The TEFR (Addendum) refers to a “Draft” Coastal Zone Management Plan (CZMP) and presents a map which describes the project site as intertidal zone within a CRZ 3 area. Based on this map, TYPSA concludes that no CRZ 1 features are affected within the project boundaries, and ascribes a score of “0” (No impact) on “CRZ sensitive areas” for the proposed site…… This draft “CZMP” has no legal status and is not the correct document to be relied on for appraisal of projects in the CRZ. This was clarified by theMoEF by way of a Notification dated July 31, 2017, wherein it is stated that the validity of the CZMPs already approved under the Coastal Regulation Zone Notification, 1991, was extended up to July 31, 2018…. The GoI approved CZMP and CRZ map for the region, which was prepared and approved in 1996, describes the 2.4km stretch where the port is to be located as CRZ 1 owing to the presence of several

www.indianbuzz.com

ecologically sensitive features, including turtle nesting grounds and sand dunes… Had TYPSA relied on this legal map, the proposed site would have scored “100” (Severe Impact) not “0” for the criteria “CRZ sensitive areas…This is a serious lapse by TYPSA, especially since the lapse has a materially significant effect on the impact score for the project site. It conveys that TYPSA has designed the TEFR (Addendum) to make Kanyakumari-2 the most suitable site…” HILE this has criminal ramifications, the consultants and project proponents have recorded another big lie-i.e. there is no population near the project site and therefore there would be no displacement. In fact, this is a unique area wherein over 40,000 hardcore fisherfolk and hardy farmers owning high-quality coconut groves and pristine paddy fields co-exist. Even a small construction activity

W

on Kanyakumari coast can cause severe erosion in the North-West shoreline and severe accretion in the South-East. Construction of such a massive port with over 5 km of breakwater will severely erode the Kanyakumari coast which according to experts could get consumed by the sea before long. Along with the coast would go the famed Vivekananda Rock Memorial on which the great sage had meditated, the 133 feet tall statue of the Tamil savant Thiruvalluvar, memorials built for Mahatma Gandhi and K. Kamaraj and above all the legendary Kumari Amman temple standing as sentinel guarding the “Land’s End of India.” The ‘bathing ghat’ at the confluence of three seas and the sunset point would vanish. In fact, a large chunk of India’s cultural/historical heritage in Kanyakumari will perish if the mega-port comes up. (See Map 2). All these were suppressed though there are several scientific papers to prove these.Despite such fraud and deceit

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

33


GOVERNANCE

environment mg devasahayam

MoEF routinely referred this to the Expert Appraisal Committee (EAC-Infra 2), who commenced the project appraisal process on December 15and gave Terms of Reference for conducting Environmental Impact Assessment (EIA). Despite repeated requests EAC has not bothered to do a site visit and seem to be dependent on paper-work from the same consultants and project proponent who have indulged in this fraud and deceit! In addition to Adani Vizhinjam ICTT, about 200 km further on western coast is Vallarpadam ICTT which is already operational. In 2011 Union Shipping Ministry had opposed the Vizhinjam project when the Union Finance Ministry was screening an application filed by the Kerala government seeking VGF for the port, arguing that developing a “new transshipment port at Vizhinjam will result in both Vallarpadam and Vizhinjam fighting for the same cargo and thus making both ports unviable in the process”. About 100 kms away from KICCT project on the eastern coast in Tuticorin port wherein there is proposal to build ICTT at a cost of `23,000 crore. OW is it that the same Ministry is now pushing a fourth port at Kanyakumari which will have a scandalous VGF component of `6,000 crore? Besides, in a thickly populated district with just about 1000 sq km habitable area how can a CEZ that require 2,000 to 3000 sq km land be established. What is the rationale? Creating white elephants to enrich the favourites? Situation in other Sagarmala megaports would mutatis-mutandis be the same. Each CEZ would require an average 625,000 acres. Which port area has such massive land area? Where is the potential for establishing ‘industries’ in such huge area, what kind of industries and by whom? Cumulative need for all 14 CEZs put together would be staggering 8750,000 acres. Where is so much land available on

H

34

gfiles inside the government vol. 12, issue 1 | April 2018

Inauguration of Sagarmala

Even a small construction activity on Kanyakumari coast can cause severe erosion in the North-West shoreline and severe accretion in the SouthEast. Construction of such a massive port with over 5 km of breakwater will severely erode the Kanyakumari coast which according to experts could get consumed by the sea before long India’s coast which are largely inhabited? Looking at the way Sagarmala is structured and pursued it is either a super-jumla or a ploy to facilitate MNCs to indulge in ‘ocean and beach grabbing’ similar to the huge land grabbing done during the last decade through a predatory ‘development’ concept of Special Economic Zones. Additional and

equally sinister factor in Sagarmala is siphoning of large public funds to private players through the mechanism of PPP and VGF. Overall the objective seems to be to grab prime waterfront realestate to be gifted to corporate buddies with wads of cash! This suspicion is further strengthened by the fact that CZMPs are being falsified and manipulated to remove CRZ-I areas from the Map and declare them as CRZ-III in order to facilitate widespread construction. This is presently happening in Kanyakumari District and the KICCT project site! Under Sagarmala, while India’s coasts are being colonised by the corporate carpet-baggers by grabbing primeland and sucking tax-payer’s money, its ecology, farming, fishing as well as the life and livelihood of the coastal population face destruction. In the event most of them are in deep turmoil with protests and struggles at various places. This does not bode well for the unity and integrity of the country. g The writer is a former Army and IAS officer

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


Hurrah! NEW LOOK! JÀOHVLQGLDFRP

www.indianbuzz.com

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

35


STATESCAN

madhya pradesh governor

New empress of MP $QDQGLEHQ3DWHOWKHIRUPHU&KLHI0LQLVWHURI*XMDUDWDQGQRZ *RYHUQRURI03DSSHDUVWREHNHHQWRZLHOGWKHSRZHUYHVWHGLQ WKHSRVWLQDGLIIHUHQWUROHDQGLQDGLIIHUHQW6WDWH E\ RAKESH DIXIT

B

ARELY two months into the job, Madhya Pradesh Governor Anandiben Patel has firmly ensconced herself as a parallel power centre in the State vis-a-vis Chief Minister Shivraj Singh Chouhan. She asks bureaucrats with complete authority to comply with her instructions in time-bound manner, she meets delegations with aplomb and unambiguously raises questions on the State governmentâ&#x20AC;&#x2122;s inapt handling of sensitive issues such as malnutrition, safety of girl-child, law and order and incomplete development projects. Her unmistakable assertiveness has left the Chief Minister flabbergasted. On the other hand, Shivrajâ&#x20AC;&#x2122;s detractors within and outside the party are rejoicing the governorâ&#x20AC;&#x2122;s growing dominance over the Shivraj rule. Otherwise known for his skills to win over constitutional post-holders with all means-fair and foul, Shivraj seems to have meekly surrendered to the feisty 76-yearold former Gujarat Chief Minister and Prime Minister Narendra Modiâ&#x20AC;&#x2122;s close confidante. In his 13 years long uninterrupted rule, Chouhan (in)famously got along well with the successive State governors, including late Balram Jakhar, late Ram Prakash Gupta, late Ram Naresh Yadav and OP Kohli. Jakharâ&#x20AC;&#x2122;s weakness was â&#x20AC;&#x2DC;luxurious lifeâ&#x20AC;&#x2122; and Chouhan spared no efforts to ensure that the then occupant of the Raj Bhawan fabulously enjoyed such a life. Late Ram Prakash was

36

gfiles inside the government vol. 12, issue 1 | April 2018

too old and too ill to either enjoy luxuries or assert his gubernatorial powers. Late Ram Naresh Yadav, though a UPA governmentâ&#x20AC;&#x2122;s appointee, fell for the BJP Chief Ministerâ&#x20AC;&#x2122;s inducements and, as a quid-pro-quo, chose to close his eyes to the omissions and commissions of the Shivraj government. He had earned the egregious sobriquet of â&#x20AC;&#x2DC;Shivraj Ka Agentâ&#x20AC;&#x2122;. It came as a little surprise to the Stateâ&#x20AC;&#x2122;s people that the then governor was also one of the beneficiaries of the Vyapam scam, the biggest job-and-admission swindle in the Independent Indiaâ&#x20AC;&#x2122;s history. Yadav left the office disgraced and demoralised as a Vyapam scam accused. His son, also a Vyapam accused, had died while Yadav was in Raj Bhawan. The outgoing governor died in Lucknow soon after relinquishing the Bhopal Raj Bhawan. His successor OP Kohli, who is Gujarat governor, was holding additional charge of Madhya Pradesh since September

The Governorâ&#x20AC;&#x2122;s warning has a context. Madhya Pradesh government has been dilly-dallying for over a year on handling over manufacturing and supply of nutrition food for malnourished children to anganwadis and self help groups

2016. Kohli seldom visited Bhopal during his additional charge. He had little interest in Madhya Pradesh and that suited the Chief Minister fine. No wonder then that all through his chief ministerial journey, Chouhan had become accustomed to mollycoddling tamed governors. None of them ever held the Chief Minister to account for his decisions, no matter how absurd, expensive or corruption-inducing these might have been. Madhya Pradesh has not had an â&#x20AC;&#x153;activeâ&#x20AC;? governor for many yearsâ&#x20AC;&#x201D;an incumbent who exercises the full spectrum of powers of the office as provided under the Constitution. Anandiben, who was swornâ&#x20AC;&#x201C;in as Governor on January 23, turned out to be altogether different from her predecessors. She sprung a surprise on the Shivraj government even before she took oath of the office. Soon after her appointment was announced, Anandiben left Gujarat on January 22 in a chartered bus along with her family and visited the Mahakal temple in Ujjain before reaching the State capital. She could have easily requisitioned the State governmentâ&#x20AC;&#x2122;s aircraft to reach Bhopal but she chose a bus. She refused State governmentâ&#x20AC;&#x2122;s official car as part of protocol when her entourage entered Madhya Pradesh border. Her journey fueled wild speculation about the new governorâ&#x20AC;&#x2122;s intentions. A few hours after her oath, she visited an aanganwadi centre in Bhopal,

www.gfilesindia.com   KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH


www.indianbuzz.com

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

37


STATESCAN

madhya pradesh governor

a juvenile correctional facility and a temple. The next day she visited cowsheds near Bhopal. Having thus hit the ground running, the Governor has not shown any letup in her proactive role so far. In fact, her assertiveness is growing, much to the chagrin of the Chief Minister. On March 24, the Governor’s sharp observation on rampant malnutrition in the State took the bureaucrats by surprise. “Why malnutrition is still prevalent in the State when the Centre is sending enough money for this purpose to the State government every year?” she asked officers of the tribal welfare department in a review meeting. As visibly embarrassed officers braced themselves for a reply, the Governor interrupted them with a sharp warning: “You ensure compliance of the instructions I am giving and don’t be under illusion that the matter has ended here. I will ask for compliance report in six months about the works on the grounds.”

T

HE Governor’s warning has a context. Madhya Pradesh government has been dilly-dallying for over a year on handing over manufacturing and supply of nutrition food for malnourished children to anganwadis and self help groups. Madhya Pradesh High Court has repeatedly warned the State government to immediately end corrupt practice of getting nutrition food for poor children prepared and supplied through three big companies. Officers of the child and woman welfare department have been served defamation notices by the High Court, Indore bench, for disobeying the court’s verdict. The Governor’s sharp comment is being viewed as a warning to the nexus of contractor-bureaucratspoliticians which has been thriving on the multi-billion business. Chief Minister’s favourite bureaucrats are accused of delaying implementation of the court order. Anandiben could not have been

38

gfiles inside the government vol. 12, issue 1 | April 2018

Anandiben, who was sworn–in as Governor on January 23, turned out to be altogether different from her predecessors. She sprung a surprise on the Shivraj government even before she took oath of the office unaware of the massive corruption at the expense of the lives of millions of poor children in the State. Madhya Pradesh has the dubious distinction of having highest percentage of malnourished children among Indian states at nearly 60 per cent. Every year, thousands of children die due to undernourishment as the nutritious

food meant for them reaches the targeted children in abysmally poor quality and quantity, if at all. The Governor’s stern warning has created massive flutter in the Shivraj government. A senior officer remarked, “This lady means business. The Chief Minister has trouble in store if he refuses to acknowledge the Governor’s warnings.” As a consequence, the entire system of food supply to anganwadis is being reworked with great earnest as per the high court order, according to sources in the women and child welfare department. Other departments have also heeded the Governor’s warning. A day after her meeting with the tribal welfare department, the government released `4.90 crore for construction of auditorium in the Raj Bhawan. Work on the

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


Speculation is rife that after the term of the three assemblies ends in November, President’s rule for six months might be imposed there. This will enable the Election Commission of India to hold simultaneous elections to Parliament and three assemblies. Significantly, the Chief Minister has constituted a committee comprising politicians, bureaucrats and journalists to suggest feasibility of simultaneous election. The committee, formed at the Centre’ behest, is to submit its report in three months. Should this speculation come true, next election in Madhya Pradesh will be fought under leadership of the Governor and not the Chief Minister. In the event, Shivraj, who is eyeing to retain his chief ministerial post for a fourth term, will not be projected as contender for the post.

S incomplete auditorium was stalled for the last five years. On January 28, the Governor had hauled up a contractor and some officials over the delay in the construction. “I have been public works department minister for seven years,” said Patel, who had taken the oath merely five days prior. “Is this the way to do things?” In response, the Chief Minister asked to speed things up, signifying that her opinions and comments about the public works department, and in general, had the necessary political clout. That Anandiben derives her political clout owing to her proximity to the Prime Minister was never in doubt. But her outreach to the bureaucracy has the Chief Minister worried, according to sources in the BJP. Sources say the Chief Minister is worried over specula-

www.indianbuzz.com

Her unmistakable assertiveness has left the Chief Minister flabbergasted. On the other hand, Shivraj’s detractors within and outside the party are rejoicing the governor’s growing dominance over the Shivraj rule tion that the Prime Minister might go for simultaneous assembly elections in three States—Madhya Pradesh, Chhattisgarh and Rajasthan—along with Lok Sabha election. The assembly polls are due in November this year whereas Lok Sabha’s term is ending in May next year.

HIVRAJ’S worries also stem from the perception that his loyalty to the Prime Minister and the BJP national president is doubtful. That Modi and Amit Shah dislike Shivraj is hardly a secret. Shivraj was once propped as a rival to Modi by LK Advani, the then-president of the party—something Modi had never been able to forgive and forget. Shivraj, much like Sushma Swaraj, was opposed to Modi being projected in the role of the Prime Minister and made every effort to capitalise on the effect of relative communal harmony that prevailed in the State under him while Modi was the Chief Minister of Gujarat. After Modi’s successful ascension to the role of Prime Minister, Shivraj managed to remain on neutral terms by keeping a low profile and supporting statements made by the Centre. Shivraj has desperately sought to curry favour with the Prime Minister by describing the latter as “god’s gift to the humanity” and ‘superhuman”. The Chief Minister managed to have the Prime Minister pres-

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

39


STATESCAN

madhya pradesh governor

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

bu

P

M Modi had made the remark in a television interview to illustrate the point that the debate on job creation should not only account for the number of jobs created in the organised sector but look at generation of employment. Initially, her appointment was seen primarily as a measure to placate the Patidar community in MP that has been upset after the Mandsaur police firing in June.

an

gfiles inside the government vol. 12, issue 1 | April 2018

strued Modi’s remark on why a person earning `200 a day selling pakodas can be considered employed. Making pakodas is a skill that could be stepping stone to a flourishing business, the 76-year-old reasoned while addressing a function in Chhindwara.

Six farmers from the community were killed in the firing during the farmer stir for remunerative price for their crops. However, as she started summoning bureaucrats, attending public functions and reviewing academic calendars of the state universities, it became increasingly that the Prime Minister has sent his close acolyte to fix the Chief Minister. Immediately after taking oath, she asked the Raj Bhawan principal secretary to computerise the movement of files instead of keeping records in manual registers and directed vice-chancellors to prepare academic calendars. She has jolted the Chief Minister to act on issues his government usually shies away from. The Governor’s office has become a forum where grievances against the government are being reported. A school principal before she first became a Rajya Sabha member in 1998, Patel has been a three-time legislator in Gujarat. She became Gujarat Chief Minister after PM Modi took charge in 2014 but had to step down in 2016. Although she is no longer the Chief Minister, she appears to be keen to wield the power vested in the post in a different role and in a different State. g

di

40

That Anandiben derives her political clout owing to her proximity to the Prime Minister was never in doubt. But her outreach to the bureaucracy has the Chief Minister worried, according to sources in the BJP

in

ence in over a dozen functions in Madhya Pradesh since 2014. However, Modi’s mistrust for Chouhan still persists. The trust-deficit has only grown as the BJP high command is reported to have serious doubts about the party winning the next election under Shivraj’s leadership. BJP’s defeat in successive assembly byeelections has only reinforced the doubts. Anandiben Patel thus seems to have been sent there to keep an eye on him. She has strenuous relations with Shah but is on great terms with the Prime Minister, having worked in close proximity with him for years. Acting as his ears and eyes in the State, this helps Modi keep a check on Shivraj’s power. Anandiben, on her part, too has sought to give an impression that she indeed is close to Modi. She has no qualm in flaunting her proximity to the Prime minister, although she is supposed to be above politics being a Governor. Crediting her success in politics largely to the Prime Minister, Anandiben once said the BJP gained power at the Centre due to Modi’s ability to select “committed” party workers. She remembered Modi during the launch of her biography, Karma Yatri, written by Ameya Latkar, in Ahmedabad in February in the presence of BJP chief Amit Shah and Gujarat Chief Minister Vijay Rupani, among others. “When I was a teacher before joining politics (in 1980s), I saved two girls from drowning during a picnic. After reading that news, Modi came to my house and asked me to join politics. That was the first time I met him. This is an example of how he used to find party workers,” 76-year-old Patel recalled. Patel said she had learned almost everything from Modi and his style of running a government. The Governor also saw an opportunity to show her loyalty to Modi in pakoda controversy. She waded right into the debate on job creation, with her explanation of how the opposition had miscon-


b z z an .co m di bu z o in uz .c

in

o m z b z c . an u o m z b di c z o . n in u a z c b m . z di n o z u in a c i z b . m z u o nd n z b

an di in

an

di

i c ia . u m z d nb uz .co in z b a om di n uz z.c m in dia nb uz z.co m in dia ianbnbuzuzz.co n

m

FOLLOW US ON : www.indianbuzz.com

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

41


STATESCAN delhi governance

Delhi govt just in name 7KHWZREDVLFIHDWXUHV WKDWGHILQHDJRYHUQPHQW DUHFRQWURORIODZDQG RUGHUDQGWHUULWRU\7KH 'HOKLJRYHUQPHQWLV EHUHIWRIERWK,W·VQRWD JRYHUQPHQWLQLWVWUXH VHQVHMXVWDPXQLFLSDO FRUSRUDWLRQ E\ RAM VARMA

T

HE scary and sordid episode of Delhi Chief Secretary Anshu Prakash being subjected to physical violence in Chief Minister Arvind Kejriwalâ&#x20AC;&#x2122;s office at the ominous hour of midnight on February 19 is shocking and scandalous beyond belief. He was called by the Chief Minister at that unearthly hour purportedly in a matter of earthshaking importance, namely, issuing full-page supplements to newspapers on completion of glorious three years of Kejriwal government! The sleep-disturbed head of the State bureaucracy entered the CM office blinking. He was made to sit between two burly, volatile legislators. He had no clue why he had been summoned at the

42

gfiles inside the government vol. 12, issue 1 | April 2018

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


dead of night. He had no notion what dire emergency had necessitated his being pulled out of bed. The Chief Minister came straight to the point and questioned him why the newspaper supplements had not been issued. The Chief Secretary was befuddled by the question. The issue of placing supplements in newspapers wasn’t of such import as to be on his fingertips. As a seasoned bureaucrat he probably replied: ‘I would have to check it up, Sir.’ His reply made the two bullish lawmakers, ensconced on his both sides, lose their temper. The special supplements were to celebrate the completion of three years by the present government and had to appear the next day. ‘But when will you check it up?’ they shouted at him. ‘The supplements had to reach the newspapers today so as to appear in the morning!’ Instantly they pounced on the unwary chief secretary, caught him by the collar and mercilessly rained fisticuffs on him! The Chief Minister remained a mute witness to this horrible outrage. I wasn’t present there, of course, and have only put two and two together from press reports. Probably the file was stuck in the office of the director of information and publicity, who is under the administrative control of the Chief Secretary. And when the promised fullpage ads did not reach the newspapers, someone rang up the CM’s office about it at 11 p.m., adding that it was too late now as the city edition was now going to the press. CM’s staff told Kejriwal about it and he felt incensed and instantly called the Chief Secretary from his house for an explanation of this grave lapse. For Kejriwal it was a matter of great importance. Probably no one reads the special supplements, but they are an accepted means of highlighting the achievements of government. He suspected sabotage. His government was a thorn in the flesh of the BJP government at the

www.indianbuzz.com

Centre and right from the start of his second innings as Chief Minister he had felt that he wasn’t getting full cooperation from the bureaucracy, possibly at Prime Minister Narendra Modi’s behest. The Lt. Governor, he felt, was putting spokes in the functioning of his government and the Chief Secretary too had probably taken the cue from him.

I

NDEED the Delhi government, as constituted at present, is inherently anachronistic. Have you ever heard of a ‘government’ which has no police force under its control? The Lt. Governor of Delhi, a Government of India officer, controls the police, not the democratically elected Chief Minister! The Delhi government has no control

over the territory. The most important public function of land development and housing is in the domain of the Delhi Development Authority, which is also directly controlled by the real boss of Delhi—the LG. Calling it a government is a travesty of terms. The two basic features that define a government are control of law and order and territory. The Delhi government is bereft of both. It’s not a government in its true sense, just a municipal corporation, as it used to be designated formerly. Indeed, officially Delhi is a Union Territory like Chandigarh, which is administered by central government officers. There is no dichotomy. There is nothing like a ‘Chandigarh government’ with a Chief Minister, just a municipal

Anshu Prakash

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

43


STATESCAN delhi governance

Anil Baijal and Arvind Kejriwal

corporation with a Mayor. The present model works only when there is synchronicity in the complexion of the central and Delhi governments. Before the accession of the BJP leader Narendra Modi at the Centre and the capture of Delhi government by Aam Admi Party leader Arvind Kejriwal, the Congress party held sway at both places and all was hunky-dory. The Lt. Governor was deferential to Congress Chief Minister Shiela Dikshit, not adversarial. He could never think of being antagonistic towards her. Arrest of the members of the Delhi Legislative Assembly by the police was unheard of then. Now the MLAs are the prime target of Delhi Police!

B

UT consider this. We have patterned our Constitution broadly on the British model. But in England the Mayor of London controls policing and crime. The Metropolitan Police is

44

gfiles inside the government vol. 12, issue 1 | April 2018

The Lt. Governor of Delhi… controls the police, not the democratically elected Chief Minister!.. The most important public function of land development and housing is in the domain of the Delhi Development Authority, which is also directly controlled by the LG under him, not the British government. Besides, unlike the Delhi Chief Minister, who is unreasonably denied the control of the Delhi Development Authority, the Mayor of London also controls housing and land, along with all other departments like health, business and economy, education and youth, environ-

ment, transport, etc. It would be more rational to carve out a core area out of New Delhi, comprising the Rashtrapati Bhawan, the offices of Central government ministries and residential areas of ministers and high officials, and designate that core area as a Union Territory, governed by the central government. The rest of Delhi should be left to be governed by the popularly elected Delhi government. It would then be a government in its true sense and would be able to fulfill the aspirations of the people who elect it. We pride ourselves by calling our country the largest functioning democracy in the world. However, John Kenneth Galbraith, the U.S. envoy, who was a perceptive observer of the world scene, had called India the largest ‘functioning anarchy’. His description fully fits the present Delhi government. g (writer is a former Chief Secretary Haryana)

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


April’18

www.indianbuzz.com

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

45


GOVERNANCE

civil services arun kumar

The omniscient bureaucrat %XUHDXFUDF\LQJHQHUDO DQG,$6LQSDUWLFXODU KDYHWRFKDQJHWKHLU HWKRVFRQVLGHUDEO\ OHDGLQJWRDPDMRU SDUDGLJPVKLIW:LWK WKHLUVNLOOVDV DGPLQLVWUDWRUVDQG NQRZOHGJHRIJUDVVURRWV V JLYHVWKHPDQHGJH %XWWKHUHZLOOEH VLWXDWLRQVZKHUHRXWRI ER[VROXWLRQVZLOOEH UHTXLUHG7KH\PXVW NHHSWKHPVHOYHVDKHDG DQGQRWMXVWDEUHDVW RISUREOHPV

46

gfiles inside the government vol. 12, issue 1 | April 2018

Y

OU love them, you hate them; you praise them, you decry them; but, you can neither be rid of them nor ignore them. Welcome to the universe of bureaucrats. It spans governments, corporates, banks and financial institutions the world over. They are like the framework around which is woven the fabric of administration of the entity they are a part of. Entire structure supports, feeds and, at higher echelons, executes with a view to fulfilling the objectives of the organisation. In India, the civil services man the top echelons of government, after being duly selected by the Union Public Service Commission (UPSC).

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


For the aspirants to civil il services, the pre-suppose commitment and efforts are Indian Administrative Service ervice is the made to instill them in the members of most coveted of government ent jobs. services. Apart from exposure to general Despite growing fascination on for principles of administration and major highly paid corporate and multiissues facing the country, a common ns, national executive positions, thread binds them to a common ethos of IAS still commands a espirit de corps and integrity, along with healthy respect. The magic other values. Every member is expected to letters—IAS—suffixed to inculcate the spirit of service to the society the entrants’ name are no and not just normative handling of issues. less than a passport to glory. The aspirants now HE selection process assesses the include doctors, engineerss ability of civil servant to be able to dand even MBA degree holdlook for and acquire new knowledge ers, many of with years of proroin wide range of subjects and use it for fessional experience. the benefit of people he is dealing with. The country inherited the But, sadly, leaves the EQ, commitment bureaucracy along with freedom, eedom, and involvement with issues, especially which was accompanied byy a large in social sector, untouched. Yet it must be number of complex problems, ms, not the said that these qualities are imbibed by the least being millions of refugees, ugees, needing members of the service, a true indicator of shelter, security, food and water; and chamerit and esprit. otic situation, threatening law and order. The presence of apolitical ICS and IPS Under fire; improving outcomes with considerable experience ience behind In recent times, IAS has not lived up to its nce in handling them made a major difference expected potential and exalted status in the situation. A continuum m the public eye. The highwas necessary and vacuum handed, and not always fair In recent times, IAS has not lived up to its in administration would be media, has gone hammer expected potential and exalted status in disastrous. Working towards and tongs against the the public eye. The high-handed, and not the ideals that had propelled service, even coining a always fair media, has gone hammer the leaders along with fervor clearly vindictive moniker for independence would and tongs against the service, even coining of ‘babu’. Where does the begin in right earnest, with truth lie? a clearly vindictive moniker of ‘babu’. civil service in the forefront, To say the least, the critiWhere does the truth lie? thanks to Sardar Patel. The cism is not entirely fair. To first Five Year Plan, executtheir credit, civil services as ed largely under stewardship of the ICS/ power, clothes, houses, health services, a whole have much to be proud of. The IAS, was considered a success. But, much education—you name it. Provisioning for steel frame has kept the flag flying, withmore had to be done on every front. these became a herculean task, requiring stood the onslaught of fissiparous tendensolutions that were innovative. cies and political machinations and given, New Challenges since late fifties Administrator continued to be the beacon by and large, a fair a clean administration. New goals were added, new challenges that would guide all and sundry in every Democratic processes have been adhered taken up. More and better quality of field, solve problems and deliver the to, periodical elections to Parliament and services were, and continue to be, goods. Bureaucrat could no longer sit on the State assemblies being further proof of demanded. Relentless growth of his laurels. He had to be a genius, which it. IAS has in no way let its credo falter; if population put further pressure, as it translates into 90 per cent perspiration some have fallen by the wayside, let us not meant need for more food, water, fuel, and 10 per cent inspiration. Both the traits forget that there are exceptions to every

T

www.indianbuzz.com

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

47


GOVERNANCE

civil services arun kumar

rule. Could they have done better? Of course, biggest room in the world is the room for improvement. How can they do better should be the refrain.

First, a bit of walk in the forest of talents seeking career in civil services

mutu cooperation, understanding of the mutual concerns of one another and jointly conce working out optimum approach to work satisfactorily resolve issues involved. satisf In earlier days, acute shortage of money often starved even critical works. Works and services requiring larger outlays would suffer, especially in outlying and woul remote areas. Recently, with better remo availability of funds, more flexibility in avai the their utilisation and technological dev developments, expectations of better p performance from bureaucrats on the ttap have risen. Added to these aare the special funding mechanisms, su such as legislator’s allocations, special are area funds, which permit no excuse to DCs D in alleviating hardships faced by the people. p

Till early seventies, the majority of candidates selected for civil services were among the brightest, many of whom opted for academic careers. By mid seventies, MBA became the cynosure of bright and ‘gutsy’—as they were willing to take up careers in the ‘unsafe’ private sector. Almost as a corollary, comparatively mediocre persons started entering the portals of civil services, along with those who were still among the very best. Academic brilliance does not Areas needing attention Ar automatically translate into great Bureaucracy in general and IAS in parBur administrative capabilities ticular have to change their as commitment and ability The most visible of various posts manned by ethos considerably, leading to handle problems of to a major paradigm shift. variegated nature might. the personnel of IAS, and one which can make With their skills as adminsignificant contribution and significant At the same time, there is istrators, knowledge of need to watch against com- difference in the last mile delivery of benefits grassroots acquired in field placency, antithetical to and services, is the District Collector, under and commitment and their effective administration on ability to handle multiple whom representative of every department of tasks gives them an edge. account of skewed interprethe government of a State works tation of status and belief in But even being the best absolute job security. does not make them While DC has to play his role in omniscient. There will a HE most visible of various posts collaboration with officers of various rise in situations where out-of-box solumanned by the personnel of IAS, departments, the role of departments, tions will be required. Besides, they must and one which can make significant mostly under the charge of senior IAS keep themselves ahead and not just contribution and significant difference officers, is no less important. District abreast of problems, likely bottlenecks in the last mile delivery of benefits and experience imparts better understanding and hurdles and think of innovative soluservices, is the District Collector (DC), of issues at the grassroots, provided DC tions. Taking lead from successful experiunder whom representative of every has worked with peoples’ welfare at heart. ments elsewhere and tweaking them to department of the government of a State This experience also comes in handy at suit their own purpose could be of works, at least notionally. In today’s central level, where pooled knowledge immense help, provided they know where scenario, when huge amount of money from different parts of the country helps to look! Lessons can be learnt from Armed is being pumped in, its full and effective the fomulation of appropriate policies. utilisation would yield desired results. With the government embracing Forces, where officers’ conduct is being This obviously needs the ‘genius’ entailing practically all aspects of life, inter- watched closely by seniors as well as coldependence of departments necessitates leagues. Competition is severe, tasks hard and committed work.

T

48

gfiles inside the government vol. 12, issue 1 | April 2018

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


enormous. The system is required to pro- researchers can render valuable input. It worked for most part of their official life vide guidance to the officers. Confidential would be still better if stakeholders are in a particular State, these officers are also reports are not entirely mechanical and involved in such exercises and some amenable to local pressures and pulls, except for some special aspects, the officer major schemes. including caste affiliations. The second reported on is shown the remarks of step in diluting the merit, experience and Reporting Officer (RO), which includes Dilution and lateral entry the ethos of the IAS is induction of varipoints of guidance that in his view are Lately, talk of lateral entry and confusing ous central service officers, even from serneeded to improve the performance of the signals further compounded by political vices like Indian postal service, military officer. This is not supposed to be a criti- innuendos have been doing rounds. Civil lands and cantonment services, accounts cism, but constructive guidance. The service is based on meritocracy and esprit services and railway services into policyomniscient IAS on the other hand (sway- de corps inculcated at the very beginning making jobs like in Home, Defence and amguru) is left alone to his devices and of the career. This was ensured by selec- Finance, and also into agriculture, health, mentoring, which can be of immense tion of the best based on a common exam- food etc., making a hash of good policyhelp, is not a part of ACR writing. ination and a common interview, and by making. Here again, what is objectionable There may be resistance on the plea that selecting the very best (the top 100 are so) is not the induction of a competent person the IAS officers are required to be inde- to the IAS. While a few civil servants from these central services, but the way in pendent and that they have the ability to might, in the course of their long career, which they are inducted. Quite often one scout for alternative approaches and solu- have turned stooges of the ruling party, at notices that the first entry these worthies tions, new techniques and technologies the time of recruitment they are totally make is into posts of Additional PS or PS and getting a peek into systems in use else- objective, capable and fair. The merito- to a Minister, based on their equation with where. In the chaotic everyday life, it is not cratic service has been diluted to an the minister concerned. always easy to do serious academic study. extent, by introducing a promotion quota The next step in dilution of the ethos of Officers are sent for sabbatithe IAS is the lateral induccal, giving them opportunity tion of so called technocrats. The meritocratic service has been diluted to catch up on knowledge, With fast-developing techto an extent, by introducing a promotion share experiences and nologies, we may need to tap quota for the State civil service officers, broaden their vision. Midtheir potential through without any written examination, merely career training programmes domain experts who can be are also conducted, but with brought in for that specific on the basis of an interview all that, it may not always be objective. That means that possible to spot and apply effective solu- for the State civil service officers, without once (s)he has outlived his utility, (s)he tions to complex problems that are bound any written examination, merely on the must make way for the next generation to arise. Various long and short courses are basis of an interview. While earlier only expert or be able to handle the new develutilised to familiarise officers with man- the state PCS officers were inducted in opments. Here again there are no set proagement techniques and tools, which can this manner, as they too have experience cedures and processes to pick up compebe made good use of. Need for constant in managing some diverse portfolios and tent science managers and technology evaluation and adjustments to stay rele- field experience in managing sub-divi- managers. It depends on the whim and vant to changing scenario can hardly be sions etc., for several years now, officers fancy of the minister concerned. It is parover-emphasised. from almost all departments have become adoxical that after doing all this damage to The top bureaucracy can itself design eligible to get inducted into IAS (NOT the top civil service by destroying the very programmes that will help building IPS/ or IFoS!). concept of meritocracy, the politicians scenarios, gauge the impact of intended responsible for it, complain about falling schemes, create steeplechase courses and HAT is objectionable is not the standards of the IAS. figure out the winning strategy. With One would like to conclude with a induction of State service officcomputer technology making multipious hope that the services, especially the ers into the IAS, but the process sectoral models, tremendous muscle can of induction, which led to many blue- IAS, are treated as partners in progress be added to the mighty government eyed boys of the State political bosses into and given even-handed treatment. g 7KHZULWHULVDUHWLUHG,$6RIĂ&#x20AC;FHU  machine. Domain experts, academia and the top administrative service. Having

W

www.indianbuzz.com

  KWWSVWZLWWHUFRPJÂżOHVPDJD]LQH KWWSVZZZIDFHERRNFRPJÂżOHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

49


GLOBE SCAN geostrategy china

Chinaâ&#x20AC;&#x2122;s Belt-Road:

Great opportunity for India ,I,QGLDZHUHDSDUWQHULQWKH%5,KHUSRWHQWLDODVDSRZHUZLOOQRWEH HDV\IRU&KLQDWRLJQRUHZKHUHDVE\VWD\LQJDZD\IURPLW,QGLD ZRXOGEHVXUUHQGHULQJKHUUROHDVDFRXQWHUYDLOLQJSRZHUQRWRQO\DW WKH%5,IRUXPEXWDOVRLQWKHUHJLRQDQGWKHZRUOG

50

gfiles inside the government vol. 12, issue 1 | April 2018

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


E\ KARAN KHARB

E

VEN as the military stand-off between India and China at Doklam was amicably resolved on India’s terms last year, much of the media and many strategists in India have continued to express serious apprehensions about China’s growing hegemonic ambitions in the region. The recent news of the Communist Party of China (CPC) endorsing Xi Jinping’s term as President for Life has given a fillip to these apprehensions in the politico-diplomatic circles throughout the world, but more so in India. Ever since Xi came to power in 2013, he has embarked upon revamping the government machinery, including purging the military and the Party of corrupt leaders. His vision to expand China’s influence across continents and oceans

became clear when he propounded the idea of ‘One Belt One Road’. The big question, however, is: How justified are India’s apprehensions! The concept of One-Belt-One-Road (OBOR), which is now commonly called

The concept of One-BeltOne-Road (OBOR), which is now commonly called ‘Belt-Road Initiative’ (BRI), is undoubtedly a masterstroke in the geostrategic matrices of today’s world that could significantly alter the equations among the regional and global powers

‘Belt-Road Initiative’ (BRI), is undoubtedly a masterstroke in the geo-strategic matrices of today’s world that could significantly alter the equations among the regional and global powers. At a time when China’s economy is on a decline from its high growth path, this masterstroke will expand China’s strategic and economic reach across the world. The concept seeks to connect China seamlessly with Central Asia, Europe, West Asia, Eastern Africa and the littoral States of the Indo-Pacific. The term ‘One Belt’ and ‘One Road’, respectively, signify revival of the ‘Silk Road Economic Belt’, a network of ancient trade routes that connected the East with the West linking the underdeveloped hinterland of China with Eurasia and Europe; and ‘Maritime Silk Road’, that will connect China’s southern provinces to the South East Asian markets

Proposed ‘One Belt One Road’ project – China in red, Members of the AIIB in orange, the six corridors in black

www.indianbuzz.com

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

51


GLOBE SCAN geostrategy china

Gwadar Port, already functional under the Chinese control, gives China easy access to the Arabian Sea

through railways and sea lanes across Indian Ocean and West Pacific.

T

HE mapping of the BRI network, i.e. highways, ports and rail lines, will generate enormous commercial opportunities across 65 countries, that is, 60 per cent of the global populace controlling a third of the total economic output of the world. It will boost China’s maritime activity across the Indian Ocean and the Pacific Ocean, connecting China’s coastline with Persian Gulf and Africa’s East coast besides SE Asia and South Asia. Even as most countries in India’s neigh-

52

gfiles inside the government vol. 12, issue 1 | April 2018

India’s concerns, no doubt, have reasonable grounds that make China’s intentions suspect. Firstly, the development of the China-Pakistan Economic Corridor (CPEC), which is part of the BRI project, passes through the Indian territory illegally occupied by Pakistan

bourhood are excited about the BRI project, India has been wary about China’s grand strategy to encircle India by casting a ‘String of Pearls’ around it in the form of development packages for the economically weaker countries in the region. India’s concerns, no doubt, have reasonable grounds that make China’s intentions suspect. Firstly, the development of the China-Pakistan Economic Corridor (CPEC), which is part of the BRI project, passes through the Indian territory illegally occupied by Pakistan, and with the Gwadar port under its control it gives China easy access to the Arabian Sea. Secondly, China’s quest to dominate

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


the Indian Ocean by luring the smaller countries in the region through its policy of ‘Charm Offensive’ that includes infrastructure development projects like ports, airports, rail-road network and oilpipelines could well be China’s way of developing her own military bases in the region to legitimise her presence in the Indian Ocean. Whereas India’s apprehensions about the BRI Project have not been hidden, there are countries in the affected zones of the grand Initiative, especially in the Eastern Europe, SE Asia and even in the Indian Ocean Region (IOR), that have welcomed the idea. As many as 52

www.indianbuzz.com

sovereign countries are today on board with China on BRI. Significantly, even Russia has exhorted India to join the project. This eloquent and mammoth support makes BRI a reality of the future, India’s reservations notwithstanding. The CPEC project, India’s most vexatious concern in this gamut, is nearing completion with the Gwadar Port already functional under the Chinese control. Several infrastructure development projects like ports, airports and rail-road networks have been either accomplished or are currently in progress in Myanmar, Bangladesh, Sri Lanka and Maldives. As a counter to BRI, India and Japan have jointly enunciated a plan called ‘AsiaAfrica Growth Corridor’ (AAGC). While the BRI idea encompasses both land and oceanic routes, AAGC is essentially a network of sea lanes connecting India with

Africa and the countries of SE Asia and Oceania. While China is developing Pakistan’s Gwadar port, India is developing Iran’s Chabahar port that will give access to Afghanistan, Central Asian countries and several European countries aspiring to connect with the Gulf bypassing Pakistan. India has ignored China’s warnings and steadfastly continued to support Vietnam in its oil exploration activities in the South China Sea. Likewise, it has been undertaking developmental projects in a few other ASEAN countries as well as SAARC members. Last year, on the side-lines of the ASEAN summit in Manila, India, Japan, Australia and the US met to lend support to Shinzo Abe’s 2007 idea of ensuring “a free, open, prosperous and inclusive Indo-Pacific region.” Although, the ‘QUAD’, as the initiative is called today, is

  KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

53


GLOBE SCAN geostrategy china

a non-formal association, it has found ‘silent’ support among the ASEAN countries as a soft-counter force to check China’s dominance in the region, especially in the aftermath of her audacious advances into the central South China Sea. Even more significantly, India’s partnership in this dialogue highlights how India’s ‘Act East’ policy has fructified in enhancing her status in the Asian and trans-Asian geopolitics. The region that was “Asia-Pacific” is now being called “Indo-Pacific” by the western world, which also highlights India’s countervailing potential signalling that China is not the only power in the region. In addition, India has also launched its soft-power initiatives to connect nations in the region. ‘Project Mausam’, a Ministry of Culture project, seeks to rejuvenate relations with countries of the Indian Ocean by enhancing cultural exchange. Besides developing Iran’s Chabahar port, India is also developing naval ports in countries of the IOR like Madagascar, Seychelles, and Mauritius.

L

ONG before Xi Jinping’s idea of OBOR, India, Russia and Iran had conceptualised and initiated a similar project—the International North–South Transport Corridor (INSTC), a 7,200-km long multi-mode network of ship, rail, and road route connecting India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe. The focus of the modern world is shifting from ‘geo-politics’ to ‘geo-economics’ today. Both China and India have emerged as giants in economic growth in the post2008 economic crisis world. India’s apprehensions of China’s hegemonic ambitions seem to be based more on apparitions of the forgettable past than on substance of concrete evidence. Sporadic cases of intrusion and tussle between the Indian and Chinese troops notwithstanding, not a bullet has been fired anywhere on the

54

gfiles inside the government vol. 12, issue 1 | April 2018

4,056 km Line of Actual Control (LAC) since the Nathu La episode of 1967. The ‘all-weather friendship’ between China and Pakistan might irk India, but they are both sovereign nations and perhaps pushed into this relationship by their shared animosity towards India. This can change. In 2016-17, India’s bilateral trade with China was $71.48 billion, recording a marginal decrease in India’s trade deficit. Besides the 12 investment agreements aggregating to $20 billion signed during President Xi Jinping’s visit to India in September 2014, as many as 600 Chinese companies have offered to invest a total of

As many as 52 sovereign countries are today on board with China on BRI. Significantly, even Russia has exhorted India to join the project. This eloquent and mammoth support makes BRI a reality of the future, India’s reservations notwithstanding about $85 billion in India in projects that will create an estimated 7,00,000 jobs in the country in next five years. Lot of water has flown down the Brahmaputra in the post-1962 era. Crying need of the time is rapprochement between the two nations paving way for enhanced cooperation in commerce and other areas of mutual interest. India and China being the key players on this hemisphere of the globe, their geostrategic interests will continue to pass through conflicts from time to time. India therefore needs to build up her own power and clout to check China from overwhelming India’s influence in the region. Some projects like the CPEC may be disadvantageous to India, but there are also some very significant advantages for India

if she opts to join the BRI. A paradigm shift in India’s strategic positioning is needed to see those advantages clearly. Firstly, of the 65 countries affected by BRI, 52, including India’s neighbours except Bhutan, are already on board with China. There is no way India can stop it. By staying out of the project, India is risking its own isolation, tempting her allies to flee. Secondly, there are grounds for India to work out a win-win situation by tweaking its countervailing potential to a partnership with China in the pursuit of mutual interests while guarding her own in the IOR and the Indo-Pacific. Thirdly, the key to BRI’s success lies in factors like regional transport, energy security and blue economy. India’s geography makes her position strategically most vital in the security of sea traffic in its East, South and West. By joining BRI, India will naturally enhance her own importance here. Fourthly, China has surplus capital and cheaper technology to accelerate development and, like other nations, India also needs funds and resources for its own development projects. Fifthly, BRI will throw open new trade connections for India with many countries. Sixthly, India is already a member of the Shanghai Cooperation Organisation (SCO). As a BRI partner, she will find it only easier to make forays into Central Asia besides acquiring an influential role within SCO too. If India were a partner in the BRI, her potential as a power will not be easy for China to ignore; whereas by staying away from it, India would be surrendering her role as a countervailing power, not only at the BRI forum but also in the region and the world. India’s policy makers must remember that in the ancient times too, it was along the ‘Silk Route’ along which India’s trade flourished and her philosophy and Buddhism spread across Asia and beyond. g

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


birthdays IAS officers’ birthdays Apr 16, 2018 — May 15, 2018

IAS officers’ birthdays Apr 16, 2018 — May 15, 2018

Vinay Chand Vadarevu

Vikrant Pandey

Preeti Sudan

C Murugan

CADRE: ANDHRA PRADESH

CADRE: GUJARAT

CADRE: ANDHRA PRADESH

CADRE: WEST BENGAL

vc.vadarevu@ias.nic.in

Vikrant.p@ias.nic.in

sudanp@ias.nic.in

c.murugan@ias.nic.in

Bhim Singh

Niharika Barik

M Padma

Muthukumarasamy B

CADRE: CHHATTISGARH

CADRE: CHHATTISGARH

CADRE: ANDHRA PRADESH

CADRE: UTTAR PRADESH

bhim.singh75@ias.nic.in

niharika@ias.nic.in

mpadma.ias@ias.nic.in

mk.samy@ias.nic.in

Basavaraju S

Arvind Agrawal

Sunil Kumar Jain

N Nawin Sona

CADRE: CHHATTISGARH

CADRE: GUJARAT

CADRE: CHHATTISGARH

CADRE: MAHARASHTRA

basavaraju.s@ias.nic.in

arvinda@ias.nic.in

Sunilkumar.jain@ias.nic.in

nawin.sona@ias.nic.in

Hira Lal Nayak

Anil Kumar Singh

Atul Kumar

Gulshan Bamra

CADRE: CHHATTISGARH

CADRE: UNION TERRITORY

CADRE: HARYANA

CADRE: MADHYA PRADESH

hiralal.nayak@ias.nic.in

singhak7@ias.nic.in

atul.kr@ias.nic.in

bamra.gulshan@ias.nic.in

SK Jain

MS Manivannan

Hukum Singh Meena

TV Somanathan

CADRE: UNION TERRITORY

CADRE: ASSAM-MEGHALAYA

CADRE: BIHAR

CADRE: TAMIL NADU

sk.jain@ias.nic.in

m.s.manivanan@ias.nic.in

Meenahs@ias.nic.in

tv.somanathan@ias.nic.in

Rakesh Kumar

Srikant Nagulapalli

Mahesh Kumar Gupta

Manoj Kumar

CADRE: ASSAM-MEGHALAYA

CADRE: ANDHRA PRADESH

CADRE: UTTAR PRADESH

CADRE: UNION TERRITORY

Rakesh.kumar@ias.nic.in

nagulapa@ias.nic.in

guptamk1@ias.nic.in

manoj.kumar@ias.nic.in

Jagmohan Singh Raju

Amit Kumar

Rama Raman

Shainamol A

CADRE: TAMIL NADU

CADRE: BIHAR

CADRE: UTTAR PRADESH

CADRE: HIMACHAL PRADESH

rajujs@ias.nic.in

amit.k12@ias.nic.in

ramanr@ias.nic.in

shainamol@ias.nic.in

Chetan TS

Swaroop P

PV Jagan Mohan

Girish SN

CADRE: ANDHRA PRADESH

CADRE: GUJARAT

CADRE: UTTAR PRADESH

CADRE: ODISHA

chetant.s@ias.nic.in

swaropp@ias.nic.in

Mohanpj@ias.nic.in

Sngirish@ias.nic.in

Mageswari Ravikumar

Nishant Warwade

M Dana Kishore

Anita Singh

CADRE: TAMIL NADU

CADRE: MADHYA PRADESH

CADRE: TELANGANA

CADRE: UTTAR PRADESH

m.ravikumar@ias.nic.in

nwarwade03@ias.nic.in

kishorem@ias.nic.in

sanita@ias.nic.in

Praveen Kumar Kolaventy

S Suhail Ali

VL Kantha Rao

SM Kendrekar

CADRE: ANDHRA PRADESH

CADRE: MADHYA PRADESH

CADRE: MADHYA PRADESH

CADRE: MAHARASHTRA

kolavent@ias.nic.in

suhailali.ias@ias.nic.in

Kantha@ias.nic.in

sm.kendrekar@ias.nic.in

LV Subramanyam

M Angamuthu

Ashwini Kumar Rai

Sufiyah Faruqui Wali

CADRE: ANDHRA PRADESH

CADRE: ASSAM-MEGHALAYA

CADRE: MADHYA PRADESH

CADRE: MADHYA PRADESH

subralv@ias.nic.in

angmuthu@ias.nic.in

ashwinik.rai@ias.nic.in

s.faruqui@ias.nic.in

Preetom Kumar Saikia

Ashwini Kumar

Vijay Arora

Arvind Singh

CADRE: ASSAM-MEGHALAYA

CADRE: GUJARAT

CADRE: ODISHA

CADRE: MAHARASHTRA

pk.saikia@ias.nic.in

kshwini@ias.nic.in

vijay.a@ias.nic.in

sarvind@ias.nic.in

Guruprasad Mohapatra

Rabindra Panwar

Mini Antony

Aswathy S

CADRE: GUJARAT

CADRE: BIHAR

CADRE: KERALA

CADRE: ODISHA

mgprasad@ias.nic.in

panwarr@ias.nic.in

mini.antony@ias.nic.in

aswathys@ias.nic.in

16-04-1981

22-04-1979

16-04-1975

23-04-1970

17-04-1979

23-04-1960

17-04-1959

23-04-1969

18-04-1965

24-04-1972

18-04-1975

24-04-1973

19-04-1963

25-04-1982

19-04-1989

25-04-1978

20-04-1975

21-04-1964

22-04-1960

22-04-1961

22-04-1962

25-04-1976

27-04-1959

28-04-1975

28-04-1975

29-04-1960

30-04-1960

30-04-1960

30-04-1969

02-05-1977

02-05-1963

03-05-1964

04-05-1961

05-05-1959

05-10-1966

05-12-1967

06-05-1964

07-05-1965

07-05-1964

07-05-1976

09-05-1975

10-05-1975

10-05-1973

10-05-1965

11-05-1960

11-05-1982

12-05-1977

12-05-1964

13-05-1965

13-05-1981

14-05-1963

15-05-1977

For the complete list, see www.gfilesindia.com

www.indianbuzz.com

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

55


birthdays IPS officers’ birthdays Apr 16, 2018 — May 15, 2018

IPS officers’ birthdays Apr 16, 2018 — May 15, 2018

S Boopathi

Siddh Nath Gupta

Sanjay Bainiwal

K Ramachandra Rao

CADRE: PUNJAB

CADRE: WEST BENGAL

CADRE: AGMUT

CADRE: KARNATAKA

sboopathi@mail.svpnpa.gov.in

sngupta@mail.svpnpa.gov.in

sanjayb@mail.svpnpa.gov.in

kramachandrarao@mail.svpnpa.gov.in

Gaurav Yadav

S Narayan Singh

Rajeev Sabharwal

G Venkataraman

CADRE: PUNJAB

CADRE: ASSAM-MEGHALAYA

CADRE: UTTAR PRADESH

CADRE: TAMIL NADU

gauravyadav@mail.svpnpa.gov.in

snarayansingh@mail.svpnpa.gov.in

rsabharwal@mail.svpnpa.gov.in

vankataraman@mail.svpnpa.gov.in

S Sarvesh Raj

Bibhuti Bhushan Pradhan

Satish Golcha

RG Kadam

CADRE: TAMIL NADU

CADRE: JHARKHAND

CADRE: AGMUT

CADRE: MAHARASHTRA

sarveshraj@mail.svpnpa.gov.in

bibpradhan@mail.svpnpa.gov.in

satish@mail.svpnpa.gov.in

kadam@mail.svpnpa.gov.in

Prashant Anand

PS Sandhu

Bhanu Bhaskar

M Durai

CADRE: JHARKHAND

CADRE: KARNATAKA

CADRE: UTTAR PRADESH

CADRE: TAMIL NADU

prashantanand@mail.svpnpa.gov.in

pssandhu@mail.svpnpa.gov.in

bhanubhaskar@mail.svpnpa.gov.in

mdurai@mail.svpnpa.gov.in

Alok Mohan

Wabang Jamir

Anil Kumar Jha

Binod Kumar Singh

CADRE: KARNATAKA

CADRE: GUJARAT

CADRE: ASSAM-MEGHALAYA

CADRE: UTTAR PRADESH

alokmohan@mail.svpnpa.gov.in

wjamir@mail.svpnpa.gov.in

akjha@mail.svpnpa.gov.in

binod@mail.svpnpa.gov.in

Sanjay Kundu

Arpit Shukla

Ram Singh

Ashish Bhatia

CADRE: HIMACHAL PRADESH

CADRE: PUNJAB

CADRE: PUNJAB

CADRE: GUJARAT

sanjaykundu@mail.svpnpa.gov.in

arpit@mail.svpnpa.gov.in

ramsingh@mail.svpnpa.gov.in

ashishbhatia@mail.svpnpa.gov.in

Guite Thangkhanlal

Sandeep Goel

Meeraj Khalid

Balram Kumar Upadhyay

CADRE: RAJASTHAN

CADRE: AGMUT

CADRE: WEST BENGAL

CADRE: KERALA

thangkhanlal@mail.svpnpa.gov.in

sandeepg@mail.svpnpa.gov.in

mkhalid@mail.svpnpa.gov.in

bkupadhyay@mail.svpnpa.gov.in

Sanjay Srivastava

Padam Kumar Garg

Hari Prasath S

Anita Punj

CADRE: GUJARAT

CADRE: KARNATAKA

CADRE: BIHAR

CADRE: PUNJAB

sanjay_s@mail.svpnpa.gov.in

pkgarg@mail.svpnpa.gov.in

harips@mail.svpnpa.gov.in

anitapunj@mail.svpnpa.gov.in

Jaijeet Singh

K Bhavaneswari

SN Seshasai

SR Samuel

CADRE: MAHARASHTRA

CADRE: TAMIL NADU

CADRE: TAMIL NADU

CADRE: JAMMU & KASHMIR

jaijeetsingh@mail.svpnpa.gov.in

kbhavaneswari@mail.svpnpa.gov.in

seshasai@mail.svpnpa.gov.in

srsamuel@mail.svpnpa.gov.in

Keshav Kumar

SV Rajasekhar Babu

Sandeep Shandilya

Anand Kumar Srivastava

CADRE: GUJARAT

CADRE: ANDHRA PRADESH

CADRE: TELANGANA

CADRE: RAJASTHAN

keshavkumar@mail.svpnpa.gov.in

svrbabu@mail.svpnpa.gov.in

sandeep@mail.svpnpa.gov.in

aksrivastava@mail.svpnpa.gov.in

Ravi Mohan Saini

K Padmakumar

AK Surolia

Arun Jeji Chakravarthy

CADRE: GUJARAT

CADRE: KERALA

CADRE: GUJARAT

CADRE: KARNATAKA

ravims@mail.svpnpa.gov.in

padmakumar@mail.svpnpa.gov.in

aksurolia@mail.svpnpa.gov.in

arunjejic@mail.svpnpa.gov.in

Saurabh Srivastava

B Shiva Dhar Reddy

Anand Pratap Singh

Jacob Thomas

CADRE: RAJASTHAN

CADRE: TELEGANA

CADRE: HIMACHAL PRADESH

CADRE: KERALA

saurabh@mail.svpnpa.gov.in

shivadhar@mail.svpnpa.gov.in

apsingh@mail.svpnpa.gov.in

jacobthomas@mail.svpnpa.gov.in

Rajesh Kumar Yadav

Niket Kaushik

Atul Verma

N Shivakumar

CADRE: WEST BENGAL

CADRE: MAHARASHTRA

CADRE: HIMACHAL PRADESH

CADRE: KARNATAKA

yadavrk@mail.svpnpa.gov.in

nkaushik@mail.svpnpa.gov.in

atulverma@mail.svpnpa.gov.in

nshivakumar@mail.svpnpa.gov.in

16-04-1976

16-04-1969

17/04/1988

17/04/1984

18-04-1965

18-04-1964

20-04-1961

20-04-1963

21-04-1964

21-04-1961

21-04-1987

21-04-1963

22-04-1973

22-04-1966

22-04-1964

23-04-1959

23-04-1963

24-04-1971

24-04-1966

25-04-1966

26-04-1961

26-04-1967

26-04-1970

27-04-1965

28-04-1966

29-04-1971

29-04-1964

30-04-1969

30-04-1967

01-05-1973

01-05-1960

02-05-1969

03-05-1976

03-05-1988

04-05-1960

04-05-1964

05-05-1960

05-05-1971

06-05-1965

07-05-1966

08-05-1968

08-05-1960

09-05-1980

09-05-1971

10-05-1962

10-05-1970

11-05-1967

12-05-1973

13-05-1967

14-05-1967

15-05-1960

15-05-1962

For the complete list, see www.gfilesindia.com

56

gfiles inside the government vol. 12, issue 1 | April 2018

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


Lok Sabha Members Apr 16, 2018 — May 15, 2018

Lok Sabha Members Apr 16, 2018 — May 15, 2018

Thangso Baite

Yerram Venkata Subba Reddy

Keshav P (Kushwaha) Maurya Vijay Kumar Singh 07-05-1969

10-05-1951

INC (MANIPUR)

YSR CONGRESS PARTY (ANDHRA PRADESH)

BJP (UTTAR PRADESH)

BJP (UTTAR PRADESH)

t.baite@sansad.nic.in,

yvsubba.reddy@sansad.nic.in

keshav.prasad@sansad.nic.in

vksingh.mp@sansad.nic.in

MK Raghavan

Ravindra Kumar Ray

Sanganna Amarappa Karadi

Rita Tarai

INC (KERALA)

BJP (JHARKHAND)

BJP (KARNATAKA)

BJD (ODISHA)

mk.raghavan@sansad.nic.in

ravindrak.ray@sansad.nic.in

bjpdpkpl@gmail.com

ritatarai@sansad.nic.in

Jayant Sinha

Satish Chandra Dubey

Shivaji Adhalrao Patil

Anoop Mishra

BJP (JHARKHAND)

BJP (BIHAR)

SS (MAHARASHTRA)

BJP (MADHYA PRADESH)

jayant.sinha19@sansad.nic.in

satishchandra.dubey@sansad.nic.in

shivajirao@sansad.nic.in

anoop.mishra@sansad.nic.in

P Kumar

Elumalai V

Dilip K Mansukhlal Gandhi

K Kamaraj

AIADMK (TAMIL NADU)

AIADMK (TAMIL NADU)

BJP (MAHARASHTRA)

AIADMK (TAMIL NADU)

p.kumar@sansad.nic.in

v.elumalai@sansad.nic.in

dmgandhi@sansad.nic.in

k.kamaraj@sansad.nic.in

Naranbhai B Kachhadiya

Uma Bharati

Uma Saren

Asaduddin Owaisi

BJP (GUJARAT)

BJP (UTTAR PRADESH)

AITC (WEST BENGAL)

AIMIM (TELANGANA)

mpamreli@gmail.com

uma.bharati@sansad.nic.in

uma.saren@sansad.nic.in

asad.owaisi@sansad.nic.in

Subhash Patel

PK Sreemathi Teacher

Kuruppassery Varkey Thomas Vara Prasadarao Velagapalli 10-05-1946

15-05-1953

BJP (MADHYA PRADESH)

CPI(M) (KERALA)

INC (KERALA)

YSR CONGRESS PARTY (ANDHRA PRADESH)

subhash.patel@sansad.nic.in

pk.sreemathi@sansad.nic.in

thomaskv@sansad.nic.in

varaprasadrao.v@sansad.nic.in

Prasanna Kumar Patasani

Konakalla Narayana Rao

BJD (ODISHA)

TDP (ANDHRA PRADESH)

prasanna.patasani@sansad.nic.in

knarayana.rao@sansad.nic.in

17-04-1953

01-05-1960

21-04-1952

02-05-1958

21-04-1963

02-05-1975

21-04-1971

03-05-1955

25-04-1955

25-04-1978

03-05-1959

04-05-1949

27-04-1946

08-05-1950

08-05-1956

09-05-1951

09-05-1984

10-05-1976

13-05-1956

13-05-1965

13-05-1969

04-05-1950

Rajya Sabha Members Apr 16, 2018 — May 15, 2018

Ravindra Vishwanath Gaikwad Sidhant Mohapatra 27-04-1960

04-05-1966

Sachin Ramesh Tendulkar

KK Ragesh

SS (MAHARASHTRA)

BJD (ODISHA)

NOMINATED

CPI(M)(KERALA)

prof.ravi@sansad.nic.in

sidhant.mohapatra@sansad.nic.in

Sachin.t@sansad.nic.in

kk.ragesh@sansad.nic.in

Ponnusamy Venugopal

C Mahendran

Shwait Malik

Tiruchi Siva

AIADMK (TAMIL NADU)

AIADMK (TAMIL NADU)

BJP (PUNJAB)

DMK (TAMIL NADU)

p.venugopal@sansad.nic.in

mahendran.c@sansad.nic.in

Shwait.malik@sansad.nic.in

Tiruchi.siva@sansad.nic.in

Pradan Baruah

Rama Devi

Anil Desai

TG Venkatesh

BJP (ASSAM)

BJP (BIHAR)

SS (MAHARASHTRA)

TDP (ANDHRA PRADESH)

baruah.pradan@gmail.com

rama.devi19@sansad.nic.in

Anil.desai@sansad.nic.in

tg.venkatesh@sansad.nic.in

Meenakashi Lekhi

Kamla Devi Patle

Surendra Singh Nagar

Thaawar Chand Gehlot

BJP (NCT OF DELHI)

BJP (CHHATTISGARH)

SP (UTTAR PRADESH)

BJP (MADHYA PRADESH)

meenakashi.lekhi@sansad.nic.in

kd.patle@sansad.nic.in

surendranagar.mp@sansad.nic.in

tc.gehlot@sansad.nic.in

Bijoy Chandra Barman

B Senguttuvan

Hishey Lachungpa

Naresh Gujral

AITC (WEST BENGAL)

AIADMK (TAMIL NADU)

SDF (SIKKIM)

SAD (PUNJAB)

bc.barman@sansad.nic.in

senguttuvanb.adv@gmail.com

h.lachungpa@sansad.nic.in

nareshgujral@sansad.nic.in

Anto Antony

Shailesh (Bulo Mandal) Kumar

Meghraj Jain

Chunibhai Kanjibhai Gohel

INC (KERALA)

RJD (BIHAR)

BJP (MADHYA PRADESH)

BJP (GUJARAT)

anto.antony@sansad.nic.in

shailesh.kumar19@sansad.nic.in

Meghraj.jain@sansad.nic.in

chuni.gohel@sansad.nic.in

28-04-1952

04-05-1972

30-04-1965

05-05-1949

30-04-1967

01-05-1957

01-05-1957

05-05-1966

06-05-1956

06-05-1975

24-04-1973

29-04-1963

02-05-1957

10-05-1965

10-05-1967

13-05-1943

13-05-1970

15-05-1954

16-05-1950

18-05-1948

19-05-1948

19-05-1955

For the complete list, see www.gfilesindia.com

www.indianbuzz.com

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

57


Tracking PHOTOS: PIB

President Ram Nath Kovind, Vice President M Venkaiah Naidu, Prime Minister Narendra Modi, Union Minister for Defence Nirmala Sitharaman, Minister of State for Defence Subhash Ramrao Bhamre and other dignitaries at the Defence Investiture Ceremony–I, at Rashtrapati Bhavan, in New Delhi.

BRIJ RAJ SHARMA

P RAGHAVENDRA RAO

BHUPENDRA SINGH

The 1984-batch IAS officer of the Jammu & Kashmir cadre has been appointed Special Secretary, Department of Border Management.

The 1985-batch IAS officer of the Haryana cadre has been appointed Secretary, Department of Chemicals & Petrochemicals.

TARUN SRIDHAR

R SUBRAHMANYAM

The 1985-batch IAS officer of the Uttar Pradesh cadre has been appointed Chairperson, National Authority for Chemicals Weapons Convention (NACWC), Cabinet Secretariat.

The 1984-batch IAS officer of the Himachal Pradesh cadre has been appointed Secretary, Department of Animal Husbandry, Dairying & Fisheries.

The 1985-batch IAS officer of the Andhra Pradesh cadre has been appointed Secretary, Department of Higher Education.

JAIDEEP GOVIND

ANIL GOPISHANKAR MUKIM

The 1984-batch IAS officer of the Madhya Pradesh cadre has been appointed Special Secretary & Financial Adviser, Ministry of Rural Development.

The 1985-batch IAS officer of the Gujarat cadre has been appointed Secretary, Ministry of Mines.

SHALINI PRASAD

The 1985-batch IAS officer of the Tamil Nadu cadre has been appointed Secretary, Department of Personnel & Training.

The 1985-batch IAS officer of the Uttar Pradesh cadre has been appointed Additional Secretary, Ministry of Panchayat Raj.

INDER JIT SINGH The 1985-batch IAS officer of the Kerala cadre has been appointed Secretary, Coordination, Cabinet Secretariat.

SURENDRA NATH TRIPATHI The 1985-batch IAS officer of the Odisha cadre has been appointed Secretary, Ministry of Parliamentary Affairs.

58

gfiles inside the government vol. 12, issue 1 | April 2018

C CHANDRAMOULI

SANJEEV GUPTA The 1985-batch IAS officer of the Himachal Pradesh cadre has been appointed Additional Secretary, Inter-State Council Secretariat.

SUBHAS CHANDRA The 1986-batch IAS officer of the Karnataka cadre has been appointed Additional Secretary, Department of Defence Production.

BIPIN BIHARI MALLICK The 1986-batch IAS officer of the Maharashtra cadre has been appointed Additional Secretary & Financial Adviser, Ministry of Culture.

SHAMBHU SINGH The 1986-batch IAS officer of the Manipur cadre has been appointed Additional Secretary & Financial Adviser, Ministry of Road Transport and Highways.

BIMBADHAR PRADHAN The 1987-batch IAS officer of the Bihar cadre has been appointed Additional Secretary & Financial Adviser, Ministry of Agriculture & Farmers Welfare.

DEBASHISH PANDA The 1987-batch IAS officer of the Uttar Pradesh cadre has been appointed Additional Secretary, Department of Financial Services.

LEENA NANDAN The 1987-batch IAS officer of the Uttar

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH www.gfilesindia.com


Pradesh cadre has been appointed Additional Secretary, Ministry of Road Transport and Highways.

B ANAND The 1987-batch IAS officer of the Tamil Nadu cadre has been appointed Additional Secretary & Financial Adviser, Department of Biotechnology and Ministry of Earth Sciences.

RAJIV RANJAN MISHRA The 1987-batch IAS officer of the Telangana cadre has been appointed Director General, National Mission for Clean Ganga.

PANKAJ KUMAR The 1987-batch IAS officer of the Nagaland cadre has been appointed Additional Secretary, Ministry of Electronics and Information Technology.

President Ram Nath Kovind with the Probationers of Indian Postal Service from Rafi Ahmed Kidwai National Postal Academy, at Rashtrapati Bhavan, in New Delhi.

BH ANIL KUMAR The 1987-batch IAS officer of the Karnataka cadre has been appointed Executive Director in NIDM.

PRAVEEN GARG The 1988-batch IAS officer of the Madhya Pradesh cadre has been appointed Additional Secretary & Financial Adviser, Ministry of Environment, Forests and Climate Change.

Moving On: IAS officers retiring in April 2018 ASSAM - MEGHALAYA

RAJASTHAN

JHARKHAND

SIKKIM

M Angamuthu (2002) Kamal Kant Mittal (1983)

Pramod Kumar Gupta (2002)

Nihal Chand Goel (1982) Umesh Kumar (1983)

Tsegyal Tashi (2003)

JAMMU AND KASHMIR Sajad Ahmad Khan (2002)

TRIPURA

BIDYUT BIHARI SWAIN The 1988-batch IAS officer of the Gujarat cadre has been appointed Additional Secretary, Department of Commerce.

KARNATAKA

UTTAR PRADESH

EDWIN KULBHUSHAN MAJHI

MADHYA PRADESH

The 1989-batch IAS officer of the Kerala cadre has been appointed Joint Secretary, Department of Food and Public Distribution.

MAHARASHTRA

ANURAG AGGARWAL

Umesh Kusugal (2005)

Krishna Kumar Khare (1997)

Sumit Mallick (1982)

The 1990-batch IAS officer of the Punjab cadre has been appointed Joint Secretary, Ministry of Corporate Affairs.

NAGALAND

SRINIVAS BANDLA

Amar Pratap Singh Virk (2005)

The 1991-batch IAS officer of the Kerala cadre has been appointed Joint Secretary, Ministry of MSME.

SATYA BRATA SAHU The 1991-batch IAS officer of the Odisha cadre has been appointed Director, NHIDCL.

www.indianbuzz.com

Neihu C Thur (1996)

PUNJAB

Krishna Dulal Choudhury (1999)

Neeraj Kumar Gupta (1982) Susheel Kumar (1982) Prabhas Kumar Jha (1982) Vimal Kumar Sharma (2005) Raghvendra Vikram (2005)

UTTARAKHAND

Usha Shukla (2002)

WEST BENGAL

Rajpal Singh Kahlon (1984) Rupendra Chowdhury (1999)

SUDHANSH PANT

SANJAY JAJU

The 1991-batch IAS officer of the Rajasthan cadre has been appointed Joint Secretary, Department of Health & Family Welfare.

The 1992-batch IAS officer of the Telangana cadre has been appointed Joint Secretary, Department of Defence Production.

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

59


Tracking

For a complete list of appointments & retirements, see www.gfilesindia.com

Vice President M Venkaiah Naidu with the 71st batch of Indian Revenue Service Officer trainees from National Academy of Direct Taxes, in New Delhi.

SCL DAS

NITISHWAR KUMAR

The 1992-batch IAS officer of the Union Territory cadre has been appointed Joint Secretary, Ministry of Home Affairs (MHA).

The 1996-batch IAS officer of the Uttar Pradesh cadre has been appointed Joint Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation.

VIVEK KUMAR DEWANGAN The 1993-batch IAS officer of the Manipur cadre has been appointed Joint Secretary & FA, Ministry of Power.

B KISHORE The 1993-batch IAS officer of the Andhra Pradesh cadre has been appointed Joint Secretary, Department of Agriculture, Cooperation and Farmers Welfare.

VIKAS SHEEL The 1994-batch IAS officer of the Chhattisgarh cadre has been appointed Joint Secretary, Department of Health & Family Welfare.

MINHAJ ALAM The 1996-batch IAS officer of the Kerala cadre has been appointed Joint Secretary, Ministry of Food Processing Industries.

PUNEET KANSAL The 1996-batch IAS officer of the Sikkim cadre has been appointed Joint Secretary, Ministry of Steel.

60

gfiles inside the government vol. 12, issue 1 | April 2018

RITVIK RANJAN The 1998-batch IAS officer of the Karnataka cadre has been appointed Joint Secretary, Department of Revenue.

SANDEEP KUMAR SULTANIA The 1998-batch IAS officer of the Telangana cadre has been appointed Secretary to Chief Minister in Chief Minister’s Office in Telangana.

RICHA BAGLA The 1999-batch IAS officer of the Maharashtra cadre has been appointed Joint Secretary, Department of Atomic Energy, Mumbai.

E RAMESH KUMAR The 1999-batch IAS officer of the Madhya Pradesh cadre has been appointed Joint Secretary, Department of Animal Husbandry, Dairying and Fisheries.

NAVDEEP RINWA The 1999-batch IAS officer of the Uttar

Pradesh cadre has been appointed Joint Secretary, Department of Pharmaceuticals.

KUNAL KUMAR The 1999-batch IAS officer of the Maharashtra cadre has been appointed Joint Secretary, Ministry of Housing & Urban Affairs.

TASNEEM MAAJID GANAI The 2004-batch IAS officer of the Jammu and Kashmir cadre has been appointed Deputy Secretary, Department of Social Justice and Empowerment.

K MANICKA RAJ The 2005-batch IAS officer of the Telangana cadre has been appointed Additional Secretary to Chief Minister in Chief Minister’s Office in Telangana.

NIHARIKA RAI The 2005-batch IAS officer of the AGMUT cadre has been appointed Private Secretary to Nitin Gadkari, Minister of Shipping.

P BALAKIRAN The 2008-batch IAS officer of the Kerala cadre has been appointed Director, Tourism in Kerala.

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH www.gfilesindia.com


...by the way Sushasan in Bihar!

Passing the buck?

E

D

very day one reads news about corruption in Bihar. Former Chief Minister Lalu Prasad Yadav is in jail on corruption charges. There is a severe crisis of governance within the civil services of Bihar–18 IAS and 208 Bihar Administrative Service officers (BAS) are facing departmental proceedings on charges of corruption, misuse of office and dereliction of duty. The General Administration Department (GAD) has prepared a list of 12 IAS officers who have been facing departmental proceedings from the period before March 31, 2016. The ‘Sushashan’ government of Chief Minister Nitish Kumar initiated similar proceedings against six more IAS officials between April 2016 and February 2018. Proceedings are ongoing not only against IAS officers but 145 m BAS officers also from before March 31, 2016. The State government initiated similar proceedings against 63 more BAS officers between April 2016 and February 2018. The maladministration in the State seems to be at all levels: 94 employees of the Bihar Clerical Service are also facing various charges of corruption, misuse of office and deliberate negligence of duty. Approximately 320 employees are facing departmental proceedings, if the clerical staff is included. And, 18 state IAS officials have been suspended for serious charges of corruption against them. One of them, Sudhir Kumar, has been in jail since February 24 last year on the charge of leaking question papers of a recruitment examination conducted by the Bihar Staff Selection Commission (BSSC). Kumar, a 1987-batch Bihar cadre IAS official, was the BSSC chairman at that time. Three of his relatives, including his brother’s wife and a nephew, were also arrested in the case. Two other IAS officials under suspension are SM Raju (1991 batch) and Deepak Anand (2007 batch). It is learnt that Vigilance Investigation Bureau sleuths have also arrested 83 officers/employees while accepting bribe in 2017. It is to be seen, whether action against these officers and employees will have a deterrent impact. g

www.indianbuzz.com

emonetisation, the Chanda Kochchar controversy, absconding Vijay Mallya and the impact of the Nirav Modi case has slowly started percolating down the line in the banking industry. The lending scenario in the banks is the lowest in a decade. Given rising bad loans and NPAs, the public sector banks are now being extra careful which is resulting in low credit offtake. The Reserve Bank of India and the Department of Banking may present a rosy picture of the industry but the ground level scenario is dismal. Bank Chairmen and Managing Directors of most PSU banks are scared and not pushing the lending business. Normally, the Zonal Managers and Bank Managers are the nodal officers for the offtake of the lending business and are constantly under pressure to meet lending targets. In the current scenario, the smart managers have evolved a new modus operandi. Whenever any businessmen or company approaches them for loan or bank guarantee, they technically start processing the papers but tacitly delay the process. In the meantime the details are reportedly passed on to private banks. The private bank approaches the loanseeker and offers them quick sanction without any hassles of submitting innumerable documents–for a price. The ‘booty’ collected is shared by officials of the private bank and the public sector bank. g

 KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH  KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH

gfiles inside the government vol. 12, issue 1 | April 2018

61


...by the way Taking up the cudgels

Virtual pay commission

R

T

ohini Sindhuri Dasari, an 2009-batch IAS officer of the Karnataka cadre, may have inadvertently joined a growing list of powerful women officers of Karnataka, including D Rope and Sonia Narang, who not only broke through the glass ceiling but also made a mark by standing up to the senior bureaucracy and politicians, when they came in the way of good work. The young Deputy Commissioner of Hassan district is going up against the government nment for transferring her prematurely. She believes short tenures come in the way of development. But there’s more to the story. The fight appears to be basically about the sanctioning of a tender worth Rs 11.75 crore by a local politician and ministerr in the State, A Manju, to hiss favourite. Manju, along with th other Congress leaders, hass complained against Dasari in the past too. But the rift between the two deepened over the tender for the construction of a viewer’s gallery atop Vindhyagiri for the Mahamastakabhisheka event in February. While Manju had insisted on handing over the work to Karnataka Road Development Corporation Ltd, Dasari had decided to hand it over to the Public Works Department. This is not the first time she has been a victim of a premature transfer. Her transfer from Mandya, where she was posted as Zilla Panchayat CEO, was rather sudden too. Several like- minded individuals and organisations had written to the Chief Minister to revoke her transfer in the interest of the district’s development. The Congress which is fighting an electoral battle with the BJP apparently does not have time to listen to the upright officer. g

62

gfiles inside the government vol. 12, issue 1 | April 2018

he 7th Pay Commission bonanza of Rs 30,748 crore was announced with a big bang by the Narendra Modi government. As many as 34 lakh government employees and 14 lakh pensioners were thrilled by the announcement in June 2017. But their dreams soon shattered. Barring some central ministries, majority of the government employees are still waiting for the increased hike and the arrears. Most of the Central University employees were informed that they may get the salary as per the 7th Pay Commission from May 2018 but there is not much clarity about the allowances. The worst sufferers are the North-Eastern states. Currently, the salary of the North-Eastern government employee is as per the 4th Pay Commission. Tripura Chief Minister Biplab Kumar Deb and Assam Finance Minister Himanta Biswa Sarma recently met with the three-member expert committee constituted for this purpose. Even the teachers of the Kendriya Vidyalaya Sangathan are still waiting for the light of the day. There are reports that the government may actually end up providing this big benefit to them ahead of the 2019 general elections at a higher rate than actually recommended. The government may reportedly provide this benefit to all employees, who get salaries from pay matrix level 1 to 5. Whenever it will happen, it will bring cheers to all government employees. Good luck to them. g

www.gfilesindia.com   KWWSVWZLWWHUFRPJ¿OHVPDJD]LQH KWWSVZZZIDFHERRNFRPJ¿OHVPDJD]LQH


Do you have a strong opinion on an issue but no forum to air it? Do you have a photograph that is worth a thousand words but nowhere to publish it? And,if you think you are Ghalib reborn but no one else thinks so,donâ&#x20AC;&#x2122;t despair. Just email your opinion,photograph, poems,or even what you scribbled about corruption last night to editor@gfilesindia.com

... about, for, of and by the powerhouse that runs the Indian growth engine

63


Regn.No.DL(C)-14/1161/2016-2018 Licence No. U(C)-03/2018, Licence to post without prepayment Posted on 14th & 15th of every month at SPM SRT Nagar, Post Office, New Delhi 110055 R.N.I. No: DELENG/2007/19719. `200, vol. 12, issue 1 | Date of Publication: 10/4/2018 | Pages 64

PRESENTS

MEMORY CLOUDS The Honâ&#x20AC;&#x2122;ble Prime Minister, Narendra Modi, on April 21, 2015, on Civil Services Day, gave a clarion call to record and upload the memoirs of senior and experienced civil servants. Hence... gfiles brings you a compilation of reminiscences by senior civil servants which were published in gfiles between 2007 and 2015. Donâ&#x20AC;&#x2122;t miss the opportunity to learn from the wealth of experience of veteran civil servants. Pre-order the book in advance to avail of the one-time offer of `720.

Featuring Prabhat Kumar BG Deshmukh MC Gupta Kripa Narayan Srivastava V Selvaraj Sushil Chandra Tripathi Romesh Bhandari Devi Dayal Reva Nayyar VP Sawhney SK Mishra Dr G Sundaram KC Sivaramakrishnan Nitish Sengupta Vishnu Bhagwan Gen Noble Thamburaj Baleshwar Rai Arun Bongirwar Arvind S Inamdar Madhav Godbole Ved Marwah Trinath Mishra Vineeta Rai Arun Kumar Rath Ajit Nimbalkar TR Kakkar Najeeb Jung MS Gill Shovana Narayan Lt Gen JFR Jacob Brijesh Kumar Surrinder Lal Kapur Yogendra Narain and many more...

You can make the payment through cheque, DD or RTGS in favour of gfiles.

For further information or queries: Mail us at editor@gfilesindia.com or log on to http://www.gfilesindia.com/product/memory-clouds/

64

Gfies april 2018  

The Maharaja is on the street. Armed with a begging bowl, he is being carted around on global roadshows in a bid to sell him to the one who...

Gfies april 2018  

The Maharaja is on the street. Armed with a begging bowl, he is being carted around on global roadshows in a bid to sell him to the one who...

Advertisement