Events & Issues

New Delhi, 13 June 2011

German Solar Tech

EXPLOIT INDIA’S SUN

 By Proloy Bagchi

Post Japan’s Fukushima nuclear disaster many countries, including those which hope to be India’s civil nuclear suppliers, are having a re-think about nuclear power. The German Chancellor Angela Merkel a nuclear power enthusiast, after Fukushima has heeded the widely shared concern in Germany about the hazards of nuclear power and has gone by the recommendations of a panel to re-consider the matter in depth.

Importantly, Germany had decided to phase out all its 17 nuclear power plants by 2022. Juxtapose this against Prime Minister Manmohan Singh’s assertion that by 2020 the country expected to raise the installed nuclear power capacity to 9000 MW (as against the current around 6000 MW) in an effort to “meet its emission targets”.

Indeed, New Delhi has been busy negotiating agreements with various countries for establishment of nuclear power plants following the 2004 US-India Civil Nuclear Agreement. Presumably on India’s request, the German Chancellor on a visit to New Delhi earlier this month agreed to help India in areas relating to nuclear safety. Germany is the largest trading partner of India in the European Union.

Chancellor Merkel also underscored that Germany would ensure that the Indian nuclear power plants safety standards would be world class. Adding, that Germany would help India achieve a “broad energy base” and help development of renewable energy.

So obsessed with costly and hazardous nuclear power is UPA II that it failed to raise the issue of German assistance in solar energy, a field in which the Germans have expertise. Instead of tapping this and other alternative energy sources, New Delhi kept in abeyance a series of agreements signed during Merkel’s earlier visit in 2007. These included, among others, enlarging the ties in environmental technology. 

Shockingly, barring seminars and presentations by German experts and entrepreneurs no headway has been made in this direction, even after three years. In fact, last year representatives of German solar technology companies visit Kolkata last year as part of Renewable Energy Export Initiative initiated by the German Ministry of Economics and Technology and jointly executed by the Berlin-based Renewables Academy and the Indo-German Chamber of Commerce. But the excitement generated by the delegation somehow dissipated with the initiative, fizzling out.

Raising a moot point. Why is the Government not interested in making use of German expertise in solar energy? Incredible as it might sound; cloudy Germany is a power-house of solar power today. With an average of only 1500 hours of sunshine and around 60 sunny days in a year, the country has become a world leader in solar power.

Besides, as the world’s sixth biggest emitter of carbon, Germany is trying to slash its carbon emissions and wants renewable sources to supply a quarter of its energy needs by 2020.  It has almost half of the world’s solar installations and is way ahead of everyone in production of photovoltaic cells.

A law adopted in 2000 requires the country's huge power utility companies to subsidize the solar start-ups by buying their electricity at marked-up rates that makes it easy for the newcomers to turn a profit. Their green power enters the grid for sale to consumers. The law was part of a broader measure adopted by the German Government to boost production of energy from renewable sources.

Moreover, the country has embraced solar technology not just for its environmental benefits and spectacular increase in solar power. But also as it has translated this into generating employment in this sector.

As it stands, the German solar PV industry installed 7,400 MW from nearly one-quarter million individual systems in 2010, and now has 16,500 MW of solar PV capacity on line in Germany. Solar PV provided 12 TWH (billion kilowatt-hours) of electricity, about 2% of total electricity. The country’s thriving solar technology industry has been looking for markets in the US, China, India and Pakistan.

Obversely, India has vast solar power potential, far more than that of an overcast Germany. With about 300 sunny days (as against 60 of Germany) and about 3000 sunshine hours per year, despite three monsoon months (as against 1500 in Germany) India can produce solar (photovoltaic) power enough to outstrip the domestic electricity demand in 2015.

Pertinently, by as much as a thousand times, even if the efficiency of PV modules is taken as mere 10%, though currently their general efficiency is almost twice as much. True, producing solar (photovoltaic) power is, presently, a costly proposition but with time, further R&D and proliferation the costs will come down.

Initially, like in Germany, the Government might have to subsidise solar power to make it affordable but it would be energy with zero emission and would also help set at rest PM Manmohan Singh’s unease about India’s emission targets.

In any case, nuclear power, too, is not cheap. With its high capital cost and rising prices on measures for several safeguards including those relating to environment, security and radio-active waste disposal.

Most scandalous, reports indicate that the nuclear power lobby in India has consistently lied and understated costs to make nuclear power look economically viable. Notably, Belgium decided way back in 2003 to phase out its seven reactors supplying 60% of its energy needs after 40 years of use due to the expensive energy they produced as also for safety reasons.

The Fukushima disaster acted as a catalyst and turned the tide against nuclear energy globally. Not only in Organisation for Economic Cooperation and Development (OECD) countries and China – but even in the US.

However, for reasons best known to it, New Delhi continues to hoot for nuclear power. Clearly, it would be worth India’s while to seriously take up the German offer of assistance in renewable energy. Specially, as Chancellor Merkel articulated Germany’s ambition of generating 20 GW solar power (against current mere 10 MW) by 2020 during her visit. Having established a special relationship with Germany, New Delhi must seize Berlin’s offer. The synergy between the German expertise and sunny India needs to be exploited for the mutual benefit of both. ---- INFA

(Copyright, India News and Feature Alliance)

Economic Highlights

New Delhi, 10 June 2011

Double Digit Inflation

INDIA’S HIGH-COST ECONOMY

By Shivaji Sarkar

Food inflation continues to surge almost at double digit level at the whole price index. It is at a two-month high of 9.06 per cent at the end of May. Giving our policy makers sleepless nights as it raises labour prices and costs of all industrial and other products.

The present inflation indicator is jumping as fruits, milk, eggs, meat and fish are becoming expensive. Wheat, rice, pulses, vegetable and edible oils are already at a high. As petrol and gas prices increase and a diesel price hike is on the cards, food inflation is expected to rise further.

The trend is likely to hit India’s growth prospects, which many agencies, including Reserve Bank of India (RBI), have already moderated. High food and commodity prices are fanning prices of most manufactured goods. These include textiles, consumer goods, education and travel. Inflation of manufactured goods has been in the range of 20 to 25 per cent over the past many weeks.

Undoubtedly, the food prices are rising phenomenally as during the third week of May whereby the WPI showed inflation at 8.06 per cent. This means that in a week prices have increased by one percentage point. This is bound to have a severe impact on the Government.

The Finance Minister Pranab Mukherjee said that the Government might miss its tax collection targets --- implying a crunch on the people’s spending power. Bluntly, people grappling with rising food prices do not have spare money to spend on other items. Thus, their income is being spent on managing food bills.

Besides, the measures taken by the RBI have been limited to making lending expensive. It hiked interest rates nine times in 13 months. Resulting in a slowdown in the industrial sector. The overall industrial growth at 13 per cent during May has been the most sluggish since September 2009. It also hit the automobile sector, which was doing well. Domestic car sales grew only by 7 per cent, the slowest in two years. The car sales figures were 158,000 units in May against 194,000 in March when sales had touched a growth of 25 per cent.

Also, the overall manufacturing growth at 5.5 per cent during January-March this year was the slowest in 18 months. Even the services sector is hit by the trend and the growth is certainly not on expected lines.

Needless to say, high inflation has a double scourge. It makes life difficult, reduces the purchasing power and turns the economy high cost. One of the reasons for India’s ability to attract foreign investment was the moderate labour cost in the country. With development, some rise in labour cost is natural. But cost on all sectors is increasing. Thanks to the rising lending, power and fuel costs. Moreover, efforts to contain this have lead to further rise in costs.

This has been happening for the past few years. But the constant food inflation, almost at 15 to 20 per cent at retail prices demand offsetting the labour wages. This normally should have generated demand. But it is not happening as the given raise again goes to meet the cost of food.

True, the industry is concerned as steps for containing food prices have not succeeded. Raising another question. Have the investors turned to the food market to get quick returns as most other sectors, including realtor and stock market, are on the downslide?

This again shows that the country, despite all policy level efforts is unable to manage the economy the way it should. In such a scenario, the Government’s latest manufacturing policy might have a noble aim, but may not actually materialise.

Plainly, the country is unable to diagnose the exact disease and those who are manipulating the system are gaining an upper hand.

Additionally, it is not just the large industries that are being hit by the trend. Smaller entrepreneurs are in a worse situation. Thousands of small shops and confectionaries have closed down owing to their inability to meet the high prices of food items. Thus, adding to unemployment.

True, measures like the rural employment guarantee scheme have served a section of the people but in the face of the poor show by the overall economy and falling Government finances it might not be sustainable for long. That would have again an economic and political fall-out.

This is not all. The infrastructure sector was supposed to be the massive job giver. But the country could not do much in this area notwithstanding some development taking place which is not enough to sustain a 9 per cent growth.

Shockingly, India ranks a low 86 in the global infrastructure competitive index. This sector needs huge funds. This could come when all other sectors of the economy do well. As this is not happening, it remains laggard.

Unmistakably, the country needs to go back to the basics. It has to manage the food sector well. The new manufacturing policy lays huge demand on land. That means again there would be pressure on agricultural land. This is again likely to lead pressure on availability of food grain and other food items. Consequently the prices will rise again.

Obviously, the country’s obsession with industry alone is not helping much. Once again it needs to learn from the US. Despite recession and a severe financial crisis, the US is still able to hold because it has kept its food prices in check. By not diverting the arable land it continues with farm subsidies. The basic fundamentals of the US farm policy have resulted in the least inflationary pressure on food items.

Sadly, India is doing the opposite. Its policy is industry-oriented. Whereby, all policies in the SEZ, industry and manufacturing are targeting agricultural land. Every year this land is shrinking.

Worse, population has risen by 18 crore in a decade while food production has remained almost stagnant for the last over two decades. Thereby, automatically creating a demand-supply gap. This needs to be bridged.

However, raising industries on farm land is not the solution. Indeed, there should be more emphasis on the farm sector as it employs 54 per cent or 72 crore people. Unless there is a policy shift and change in mindset, India’s dreams may not turn into reality. ---- INFA

(Copyright, India News and Feature Alliance)

Open Forum

New Delhi, 6 June 2011

Civil Society vs Govt

NGOs FOR RURAL GROWTH

By Dhurjati Mukherjee

Activist Binayak Sen’s release from jail has raised two important questions. One, the relevance of the 150-year old Indian Penal Code (IPC) and individual rights in our democratic polity.

Many political analysts believe that Sen’s detention was unjustified and there was no rationale in keeping him in custody. Indeed, the public outcry for his release in India and abroad created tremendous pressure which finally led to his release. And now the Planning Commission has inducted Binayak Sen as a member in its steering committee to formulate strategies for revamping the health sector.     

In fact, there is a strong public opinion against the IPC as it was a law to maintain Imperial control and has no meaning in independent India. But it has continued over the years. Legal experts are of the opinion that it needs to be redrafted so that people like Sen, who might be a Maoist sympathizer, have the right to express their opinion and should not be taken into custody only on the basis of presumptions.

Undoubtedly, a transparent and democratic society has to give freedom of expression to all sections of society, specially intellectuals and civil rights activists. Notwithstanding, that the behavior of civil society, specially the upper middle class has been passive about the rights and privileges an individual should enjoy from whichever segment he or she might belong. It is also clueless about the sufferings of the poor and the economically weaker sections of society.   

On the other hand, the middle class is vocal about the need for bestowing basic human rights to all sections of society. They clamour for an alternative development strategy and want “inclusive growth” to become a reality. A curious feature of this binary divide is that both groups enjoy an uneasy co-existence within the country’s Establishment. The furore over Sen’s conviction and subsequent exoneration by the Supreme Court epitomized this dysfunctionality.       

It is only in the last few years that civil society has become vocal and public protests are gaining momentum. Primarily, because Government policies and programmes have failed to reach the targeted beneficiaries due to a defective delivery mechanism set-up. Most of the agitations have been peaceful but there is no guarantee that such activities will remain non-violent just because the organisers speak in the name of civil society.     

True, the Opposition is an important institution in Parliamentary democracy but civil society has also emerged as a strong voice to highlight the demands of the oppressed and backward sections of society. Though protests in Egypt, Tunisia and other Arab countries turned violent, these movements gained legitimacy and the masses support. Thus, the Government cannot ignore the voice of the civil society and this was manifest when Anna Hazare began his fast at Delhi leading to the Government ultimately agreeing to form a committee to redraft the Lok Pal Bill.    

What should be the future role of civil society in India? This question has been discussed and debated in various workshops and seminars across the country and abroad. Whereby, the anti-poor policies of most Third World countries has put a greater onus and responsibility on civil society to voice the genuine demands of the lower segments of society for a dignified existence.   

Another aspect of the problem is that while countries like India have certain plans and programmes for the poor, the delivery mechanism is tardy. For example, a recent report has pointed out that though one per cent of the GDP is spent on PDS, only 41 per cent of foodgrains reach the poor due to high leakages. “Majority of the poorest households were not accessing PDS grains with the rich taking most of it”, the report stated. 

Apart from politicians, intellectuals, planners and sociologists have admitted that civil society representatives have a key role in formulating and implementing strategies at the grass root level as they work at these tiers. Besides, the intimate contact they have with the people helps them carry out various types of work in a cost-effective manner.   

Shockingly, not only has the administrative machinery become corrupt but also the costs involved in reaching society’s lowest tiers are high. Hence civil society could take up work, at least in some sectors, with ease and responsibility. In fact, it would be prudent to give civil society, namely non-Governmental organizations (NGOs) and community-based organizations (CBOs), more responsibility. Both in decision making and implementation of Government plans and programmes, pertaining to the poor and economically weaker and backward sections.    

Sadly, the performances of State-run institutions, including panchayats are inefficient and embedded in corruption. Making induction of NGOs and CBOs representatives prudent to improve the working of these institutions and reach the targeted beneficiaries. But it appears that neither the Union nor State Governments are interested in making these institutions transparent and efficiently run. Never mind the Planning Commission’s core committee to underline NGOs activities which has hardly met and no noteworthy suggestion has so far emanated from its deliberations.     

Significantly, with the Government giving civil society a cold shoulder, the Sonia Gandhi led National Advisory Council (NAC) which has been trying to broaden the spectrum of the Food Bill for over two years continues to face resistance from bureaucrats. Underscoring how NGOs are treated.

Most scandalously, there is no policy to involve civil society in rural development, spreading low-cost sanitation, generating scientific, environmental and health awareness, disease prevention and direct intervention in rural and semi-urban areas. Also these NGOs are rarely used to upgrade livelihood standards of slums dwellers, squatter settlers and pavement dwellers, which responsibility should be bestowed on them.    

In sum, with the political apparatus virtually failing to carry out its responsibility vis-à-vis the poor and marginalized sections, it is necessary that civil society be involved in developmental work and adequate financial support be extended to it. Only then can the oft-repeated slogan of inclusive development become a reality. ---- INFA     

(Copyright, India News and Feature Alliance)

Political Diary

New Delhi, 11 June 2011

India Is Angry

WHITHER JUSTICE?

By Poonam I Kaushish

India is angry, very angry. It has reason to be against the backdrop of our power-that-be on-going nautanki we stood witness to over the last 10 days. A political and moral crises the likes of which never seen before. A rage over the Government and Congress’ inability, ennui, failure and apathy to rein in corruption. Culminating in a huge political vacuum, political and moral in governance. Worse, bereft of ideas, it is unable to grasp the mood of the public which demands answers and seeks justice.

Indeed, laughable is Manmohan Singh’s diatribe when he talks of his Government's determination to act against corruption. Given that the State’s actions are proof of its determination not to end this scourge. Its ten-day long shenanigans swinging from deafening State silence to submission and savagery to scornfulness.

Starting with sending an entourage of four Ministers headed by Finance Minister Pranab Mukherjee to Delhi’s airport and imploring yoga guru-turned civil activist Baba Ramdev to desist from carrying out his anti-brashtaachar crusade. Down five-hour torturous negotiations at a five-star hotel. Followed by the ‘murder of democracy’ on 4 June midnight by unleashing a brutal lathi-wielding police force on sleeping hapless women, aged and children at Union Capital Delhi’s Ramlila Maidan.

Call it 21^St Century India’s Jalliawala Bagh British-like violence, 1975 Emergency  revisited or Beijing’s 1989 Tiananmen Square massacre or what you may, but at the end of this mayhem, like a Cheshire cat, trust our netagan to tom-tom who the master was. Never mind, that the blame for India’s frenzy rests squarely at the UPA II doorstep.

Raising basic issues: Who took these hair trigger decisions? Isn’t it the State’s responsibility and duty to protect its citizens? If the State harms the public who will redress its grievances? At whose desk does the buck stop, Sonia or Manmohan Singh?

Needless to say the State’s action was capricious and cavalier, to say the least. Unlike developing nations where each citizen is a VVIP in India the aam aadmi is expendable, a mere statistical number in a burgeoning population. Juxtapose how US played ‘blood money’ to get CIA operative Raymond Davis accused of killing two released from a Pakistani jail. While in Delhi, a healthy 51-year old Rajbala now quadriplegic in Ramlila Maidan’s pandemonium lies untended in coma.

The tragedy of it all is that instead of finding a solution to civil society’s demands to end corruption, our leaders at best tried to play Team Anna Hazare against Team Ramdev. At worst, directed their energy to thwart these demands. Failing to gauge the public mood, our netagan forgot that this time round the aam janata yearns for change. Despite 64 years of Independence our polity has yet to get its act together and become citizen-centric, the very intent of seeking Independence

Undeniably, it is our elected representatives duty to legislate and govern but equally inherent is the people’s right and duty to correct them and insist on a coarse correction. Over the years, our polity has been over-powered in the false bluster of the Orwellian syndrome of we-are-more-equal-than-others that they treat good governance as an option rather than a duty which can be side-stepped easily.

They allow anything so long as it does not upset the applecart of the political-bureaucratic alliance which feeds on corruption. Preferring to rule by law than govern. Serving the people is merely a pretext, a preface for their acts of mis-demeanor. Any wonder that they harshly trample and crushed voices seeking reform.

Till such time that our polity does not pay for its negligence and malice against the aam aadmi the India Growth Story will be stuck in the marshy eddy of self-deception and corruption, dubbed an uncouth and uncivilized nation. A colonial predatory State, meant for the benefit of a few at the cost of the many.

Sadly, Sonia Gandhi and her cohorts can no longer feign ignorance of being kept out of the loop by her Government. Or indulge in a cacophonic tu-tu-mein-mein between her and the Government for adopting a carrot and stick policy. As her HRD Minister disclosed the draconian measures by the police on 4 June midnight were cleared at the very top.

Given her limitless political authority, Sonia’s reaction smacks of second thoughts. Also, it was she who set the precedent of giving sweeping powers to civil society activists by setting up the all-powerful Supreme Unconstitutional National Advisory Council headed by her.  Questionably, is she waiting for a young child to remind her, that like the Emperor, she wears no clothes!  

As long as the Prime Minister continues to be perceived as helpless pummeled between the aam aadmi pressing for action against corruption and Sonia’s Congress which sees the Coarse-correctors as a greater evil than corruption itself, the present crisis will continue. Underscored by the de facto and the de jure centres of power, read Sonia and Manmohan Singh contributing to a political and moral void.

What next? The time has come for our leaders to break the walls of silence and take immediate action lest the country sliding into self-crated chaos transcends into a lynch-mob society. The need of the hour is to apply corrective balm to a vandalized aam janata, connect with its hurt people and assert its authority interspersed with emotional discourse.

The recent decimation of Karunanidhi’s DMK in Tamil Nadu thanks to his brood being enmeshed in the unsavory Rs 1.76 lakh crore 2G Spectrum scam holds out ominous portends. Wherein popular outrage against this brazen loot devastated the south’s First Family.

With a 50 per cent population comprising Gen Next, India has moved from a tale of grievances and gripe to a nation which is ambitious and determined. Sans the chalta hai attitude it will not swallow the daily humiliation of being bestowed hand-me-down-favours which is their right by a self-obsessed Government they elected.

The out-of-the-system aam aadmi who has neither the contacts nor where-with-all to manoeuvre his way through the myriad file-pushers is sick of not having a level playing field when it comes to inter-course with a mantri, MP, MLA or babu.  Enough, he shouts, I will not take it lying down!

Is the worm slowly turning? The wheel coming a full circle? True, India's Jasmine Revolution moment is yet to arrive and its Tahrir Square may take a long time to happen but both the Anna Hazare and Ramdev show of public support underlines that a beginning has been made.

The aam aadmi craves a course correction. Back to the days when he is truly the master and the leader the jan  sevak. Time to put an end to ‘corruptocracy’ and ‘connectionocracy’. They want reform, of governance, a change in the mindset of our mai-baap sarkar, even a hope of changing the system will do.

Clearly, the State needs to grasp that an aspiring nation is not seeking retribution but evenhandedness, self-respect, honesty and integrity. A battered citizenry demands a self-righteous, competent and morally sensitive Prime Minister who can ease its pain, make it not only realize its aspirations but live them. Any attempt to stifle a new Aspirational India’s call for an end to corruption and change would be opposed vehemently. Will Manmohan Singh and his brood heed? ----- INFA

(Copyright, India News and Feature Alliance)