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Events and Issues
Kinks In Manmohanomics: NDA ADDS TO UPA LEGACY, By Shivaji Sarkar, 21 February 2022 |
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Economic Highlights
New Delhi, 21 February
Kinks In
Manmohanomics
NDA ADDS TO UPA LEGACY
By Shivaji Sarkar
An economist strangely goes political to
criticise a government that follows his Manmohanomics of liberalisaion, globalisation,
privatisation with the same devotion that the proponent, Manmohan Singh, former
Prime Minister started. One can understand the pressure of Singh trying to
score a political goal. The plunge that he took virtually exposed the kinks in
Manmohanomics. It has never been a panacea for inclusive growth or aims high in
a global situation that monetises every social effort and leads to bankisation
of products and activities that should not be.
Rising prices were a phenomenon during Singh’s
UPA regime and that continues because the nation never cared to control the
prices except during a brief period of NDA-I under late Prime Minister Atal
Behari Vajpayee. As a people’s Prime Minister having been in touch with the
common man scripted path-breaking reforms in telecom, road, power, and taxes.
Despite sanctions following Pokharan-II in 1998 and the Kargil War in 1999, the
government managed to keep economic growth above 6 per cent till 1999-2000.
Growth slowed in 2002-03, with drought, but recovered soon.
In the years after
1998, Vajpayee met this challenge well and according to
the World Bank data, the inflation rate was 4.67 in 1999, 4.009 in 2000, 3.779
in 2001, 4.297 in 2002, 3.806 in 2003 and 3.767 per cent in 2004. When Vajpayee took office in 1998, inflation
was 13 plus per cent.
Vajpayee had left a high GDP for his
successor Manmohan Singh of the Congress. During the UPA years, 2004-2014, GDP
numbers were initially high but slumped drastically towards the end of
its tenure. Shockingly, few understand the enigma of electoral
rejection of Vajpayee-led BJP in the 2004 Lok Sabha elections.
The new government under Manmohan Singh, data
shows, had GDP growth between 2004-05 and 2011-12 at 7.05 per cent, 9.48 per
cent, 9.57 per cent, 9.32 per cent, 6.72 per cent, 8.59 per cent, 8.91 per cent
and 6.69 per cent for the respective financial years (according to old series).
The growth was 6.05 in 2014 as per new series.
It was nothing hunky dory in the UPA regime. There
started the country’s problems. Vajpayee led the biggest ever coalition with
élan. The Left differed with him but most leaders in private praised but had reservation
on his disinvestment. The same Left alliance could not continue in the Manmohan
Singh’s UPA government beyond 2007 as they protested Singh’s anti-people
decision and poor leadership, though the trigger was the nuclear deal. The
check that the Left had on UPA was lost and it plunged into series of scams.
Inflation was at a high since 2007 and reached
a super high of 11.06 per cent in 2013 giving the BJP the edge to fight against
“mahngai dayan – inflation dragon”. As per data, Singh’s successor,
Prime Minister Narendra Modi inherited poor GDP numbers after coming to power
in 2014. However, the GDP numbers during the NDA started improving initially. In
2014-15, the GDP growth was recorded at 7.2 per cent. This increased to 7.6 per
cent in 2015-16.
The NDA government started faltering under
the heavy baggage leading to too many corrections. The economic woes it inherited
with a fear of “black money” tormented it. Being under pressure Modi hurriedly
decided in 2016 on a never before demonetisation of 87 per cent of currency
notes for cleaning the economy. It theoretically was a good move but
practically plunged his government and the people into unseen problems. An
economy that just started booming got a shock. It hurt the businesses and the
poor. Possibly never imagined impact was on political finances of the parties.
The note-ban slowed growth to 7.1 per cent in
2016-17. Next year, 2018-19, this and GST introduction reduced it to 4.2 per cent
and unprecedented 2020 pandemic cut it to minus 7.3 per cent.
The Modi government has got into a vortex for
inheriting a poor system as also not trying to move out of the Manmohanomics.
The bank NPAs soared during the UPA government as it opened coffers to
incentivise rich companies. Public finances, deposited by the poor, became
fodder for the fly-by-night operators. A small number of companies alone heaped
over Rs 2.24 lakh crore NPA by 2014. This could not be checked and doubled to
Rs 5.4 lakh crore in 2021. The recent ABG group problems also had started during
that regime as were the Mallyas and Geetanjali jewelers.
Decade-long messing up of economy needs heavy
correction. It could not happen as the NDA remained under the “aura” of Singh.
It forgot that all the major scams that happened during 1992 to 1998 were under
the stewardship of Singh as Finance Minister. So were the post-2007-8 bank NPAs,
he as Prime Minister.
The NDA is to be faulted for continuing with
a liberalisation that really never was except for UPA’s chosen business
friends. Its disinvestments of PSUs never helped the country. Most profitable
Navratnas were handed over on a platter to friends and many were deliberately
led to losses like the MTNL, BSNL and Air India. In fact, NDA could have
instituted an inquiry to unearth the 2005 scam that forced profit-making Indian
Airlines and Air India to merge and dumped with losses for the benefit of
private operators. Its shearing itself cost the exchequer almost a trillion
rupees.
The NDA also faltered for various compulsions
on its self-sufficient atmanirbhar Bharat. It happens sometimes in the
process of governance. Now State Bank of India has come out with the possible
solution. The country has to reduce its dependence on China. Its Ecowrap,
economic report, says leveraging production-linked-incentives can reduce
dependence on China by 20 per cent or $ 8 billion GDP gain. And it is possible
to reduce it to 50 per cent, a $20 billion bonanza. It would add to 60 lakh
jobs and production of Rs 30 lakh crore in five years in addition to what the Union
budget has announced.
The NDA has to implement its ideas. It has to
go slow also on some such as National Education Policy, bullet and metro-type
trains, review extension of roads and too much dependence on infrastructure
spending. As also it has to review the causes, including many administered
prices like high tolls, fees, freights and fares that are pushing up inflation.
The NDA has opportunities as also prospects
to ensure it frees itself from the legacy of Manmohan Singh, his Manmohanomics,
and charts out a new people-centric economy.---INFA
(Copyright, India
News & Feature Alliance)
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Hijab & Tricolour Row: KARNATAKA POLITICS TO HILT, By Insaf, 19 February 2022 |
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Round The States
New Delhi, 19
February 2022
Hijab &Tricolour
Row
KARNATAKA
POLITICS TO HILT
By Insaf
Karnataka has more on
its plate than it can handle. In the midst of the raging hijab controversy,
there is another, on the national flag. The opposition Congress has laid siege
in Legislative Assembly demanding Rural Development & Panchayat Raj
Minister Eshwarappa be sacked and booked for sedition for his statement. This after
Eshwarappa last week said the ‘Bhagwadhwaj’ (saffron flag) may become
national flag sometime in future and may be raised from Red Fort. Both minister
and BJP government hit back saying his statement was ‘misconstrued’ and
Congress was disrespecting the national flag for protests in the floor of House.
Plus, Congress was ‘playing politics’ when ‘people/government are working
towards creating a conducive atmosphere for students in schools and colleges.”
Take it with a pinch of salt? While the court addresses the hijab row and
addresses the question “If there are 100 symbols, why is the government picking
on only hijab?…Bangles are worn. Why only pick on these poor Muslims girls?..”
, the Dept of Minority Welfare, Haj and Wakf has issued a fresh circular. Quoting
HC interim order it said it would apply to Maulana Azad Model English Medium
schools too. Ruffling more feathers instead?
* * * * * * *
Third Wave Over?
All is now well, is
the Centre’s message to States. Minimise Covid-19 impact on “the lives and
livelihood of people,” is its advice. A letter to Chief Secretaries on
Wednesday last, by Union Health Secretary said: “Presently, as the case
trajectory across the nation is showing a sustained downward trend, it will be
useful if States review and amend/do away with the additional restrictions so
imposed after considering the trend of new cases, active cases, and positivity,”
so that people’s movement and economic activities are no longer hampered. Fortunately,
the Omicron variant has been much milder and case counts have remained below
expected levels, with daily numbers having dropped to 30,000-odd, the lowest
this year from 3.47 lakh in January. Just about 75 districts are now reporting
a weekly positivity rate of over 10% and 80 districts less than 5%.States are
gradually easing restrictions on social gatherings, occupancy in
restaurants/theatres, opening schools/colleges, lifting night curfews etc.
However, there’s a nagging fear that complacency shouldn’t set in. Families and
friends can’t forget the horrific second wave wherein people became victims not
to the virus but governments letting down guard. Once bitten twice shy, is
sound advice.
* * * * * * *
Punjab Faux Pas
A classic case of
putting one’s foot in the mouth? During a poll rally, closing on the
campaigning, Congress Chief Minister Charanjit Singh Channi stirred a political
storm by saying: “Punjabian di bahu hai Priyanka Gandhi, eh
saadiPunjabanhai, isskarkeikk passe hojaoPunjabion… UP, Bihar aur Delhi de
bhaiye aa keithe raj karanlagge, vadanna deo ithe (Priyanka is Punjab’s
daughter-in-law. She is our Punjaban. So Punjabis, get united. The bhaiyas
from UP, Bihar and Delhi want to rule here. But we will not let them enter).”
Worse, it got an applaud from Priyanka! Obviously, BJP and AAP got their
opportunity and slammed Channi saying it was an insult to the people of UP and
Bihar. With Channi’s faux pax going viral on social and polling on Sunday,
Congress went into damage control. In a video message, Channi said his
statement ‘is being misconstrued. All migrant workers who came to Punjab till
date, have toiled and taken it on the path to development. We have only love
for them, nobody can change it.” Plus, he wasn’t referring to migrants, but to
AAP leaders, including Arvind Kejriwal, ‘who come here and create disruption.’
The big question is whether the sizeable migrant community let it pass? To be
sure the Congress, also put out a video message from former PM Manmohan Singh urging
people to vote for the party and blaming the Centre for trying to “malign Punjab
and Punjabis”. Will his magic work and undo the damage?
* * * * * * *
Kerala Governor-CM Drama
Kerala has been
spared a ‘constitutional’ crisis, on eve of Budget session. Governor Arif
Mohammed Khan had his way. He finally gave consent for his opening address to
the Assembly on Friday last, but only after Chief Minister Pinarayi Vijayan
with Chief Secretary in toe visited Raj Bhavan a day before to calm tempers.
Khan was upset over a dissent note been issued while heeding to his request to
appoint a veteran journalist and BJP State committee member as his additional
personal assistant. The note said the appointment of a politician in Raj Bhavan
was “unprecedented” and “it was
desirable to stick to norms.” Seeing it as an insult to Governor’s office, he demanded the officer
who issued the note, Principal Secretary, General Administration Dept, be
removed and government stops the practice of ‘life-time pensions’ to personal
staff of ministers, as it was “a waste of public money, only meant to groom
party cadres.” The first demand was met and assurance given for the second. The
drama is not the first. Interestingly the Opposition sees it as a ‘quid pro
quo’ and not that Raj Bhavan and CM office are at logger heads. It claims Khan
eventually gave assent to an ordinance, which would clip the Lokayukta’s
powers, just a week before his personal assistance was appointed! The people,
it says are being hoodwinked!
* * * * * * *
Reprieve For Haryana
It was well worth
knocking on Supreme court’s door. The Khattargovernment got reprieve and now
hopes “The Haryana State Employment of Local Candidates Act, 2020”, may no
longer face hurdles. On Tuesday last, the apex Court set aside the Punjab and
Haryana High Court order staying the law, which provides for 75% of private
sector jobs for residents of the state. It said the HC hasn’t given ‘sufficient
reasons for staying the legislation” and asked it decide within four weeks.
Besides, it restrained the government from taking any action against employers
under the law till then. The SC was approached by the government and argued
that three other States-- Maharashtra, Andhra Pradesh and Jharkhandhad similar
laws and that the law was a means to regulate migrants from settling in other States.
The apex court did contemplate
transferring pending matters to it, but said it would have to hear it on merits
as the issue “is about livelihood and we are concerned about it”. Be that as it
may, the Khattar government may be able to fulfil its poll promise. All eyes
will now be on what reasoned order the State HC gives.
* * * * * * *
Lalu’s Freedom!
Former Bihar Chief
Minister and RJD chief Lalu Prasad Yadav may have to give up his dream. On
Tuesday last, a CBI court in Ranchi convicted him in the fifth fodder scam case
shattering his desire to return back to active politics and Parliament. The
court is to pass an order on the quantum of his sentence on Monday and till
then an ailing Lalu was sent to Rajendra Institute of Medical Sciences, Ranchi.
Recall, Lalu was jailed in December 2017 following the Rs 950 crorescam and
then shifted to RIMS after his health deteriorated in jail; admitted to AIIMS
and set free May last after the Jharkhand High Court suspended his remaining
jail term, because he had already served half the sentence. The BJP is elated
and its leaders have reacted saying, ‘the verdict is the curse of the poor… is
reaping what he had sowed’ and now that he is convicted in five cases ‘he can’t
contest any election for even a Mukhiya!’ His son and leader of Opposition Tejashwiclaimed
the verdict ‘hasn’t dampened the party’s morale, the order needs to be
respected”. However, he wondered whether this was the only scam in the country.
“There had been some 80-odd scams in Bihar. Has any action been taken against
anyone? What about cases against some influential businessmen in the country?”,
he said at a press conference. He needs to remember two wrongs don’t make a
right! ---INFA
(Copyright, India
News & Feature Alliance)
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THE ASSAULT ON FEDERALISM, By B.K. Nehru, 17 February 2022 |
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REWIND
New Delhi, 17 February, 2022
THE ASSAULT ON
FEDERALISM
By B.K. Nehru
(Former Governor and
Diplomat)
(Released on 6
February, 1990)
The Constitution of the Republic of India is
federal; it is the union of the States that makes the Union of India. Most
large countries and some not so large are federations; well-known examples are
Canada, Australia, the United States, Brazil and the Federal Republic of
Germany.
The essence of federalism is that the
legislative and executive powers of the federal and State governments are
clearly set out in the Constitution; neither has the right to go beyond the
jurisdiction so determined. A federal structure in a democratic state implies
that at various times there will be --- in most countries there are ---
different parties in power at the Centre and the States. With Republican
President of the United State today, for example, more than half the States of
the Union are governed by Democratic Governors. The same difference of parties
in power is true, and always has been true of all federations; it is seldom
that all the States and the Federal government have governments of the same
party.
The complaint of the States in India – and a
legitimate complaint it is --- is that the Centre has gradually been
encroaching upon the powers guaranteed to them by the Constitution and thus reducing
their autonomy. From time to time, this feeling becomes acute and demands are
made for more autonomy. The extreme case of this demand today is to be found in
the Punjab where that demand is not only extreme but expressed in extreme form.
This tendency to encroach on the autonomy of
the States is highly dangerous for the unity of India. This is because Indian
nationalism does not as yet have that kind of overpowering loyalty among all
the people of India as it does in smaller and more homogenous countries. India
is a diverse country; its basic political unit, to which emotional loyalties
are attached, is the linguistic group. This corresponds today to the boundaries
of the States. (The only exception is the Hindi-speaking area; this is divided
into States more for administrative than political reasons). Each State guards
zealously that portion of its sovereignty which is ensured to it by the
Constitution.
Any attempt by the Central Government to
reduce it causes an anti-Centre feeling. In political terms, the Centre is
synonymous with India; “India” is then seen to be attacking the “identity” of Tamil
Nadu, Andhra, Punjab or whatever. The
Founding Fathers and the members of the State Reorganization Commission were
wise enough to realize that if the political unity of India was to be
maintained it could only be done by guaranteeing the autonomy of that political
unit to which the people were genuinely and emotionally attached. Any going
back on those guarantees would be dangerous for our unity. The attack on State
autonomy reached a crescendo in 1977 when the Janata Government advised the
President to dismiss the Governments and dissolve those Assemblies of the
States where the Congress-I was in power on the ground that the federal
elections had shown that those Governments no longer enjoyed the confidence of
the electors. This advice was clearly unconstitutional; the only ground on
which the President could take the action was if he was satisfied that the
Government of the State could not be carried on under the Constitution (Art.
356); this condition was clearly not fulfilled.
The acting President, Mr. B.D. Jatti,
succumbed to the threat of the Prime Minister, Mr. Morarji Desai, to resign if
he did not accept this advice; a very unfortunate precedent was set by which
the victory of one party in the federal elections gave the Centre the right not
only to encroach on the autonomy of the State Governments but to abolish them
altogether. The Supreme Court to which the issue was referred did not face it. Instead,
it escaped by dismissing the case on technical grounds. The impression in the
lay mind is, therefore, that such dismissal of the State Governments is
Constitutional. As was to be expected, the Congress-I eagerly followed the
precedent when it came to power in 1980.
This precedent inflicted an exceedingly
serious wound, though not mortal one, on the autonomy of the States. That mortal
would has now been inflicted by the Union Government advising the President
(and the President accepting this wholly unconstitutional advice) to ask for
the resignation of all the Governors of all the States. The present Home
Minister is on record as saying that the Governors “represent” the Government
of India, and, therefore, must be “in tune” with whatever party happens to be
in power at the Centre.
This view of the role of the Governors has no
Constitutional basis; all constitutional authorities are agreed (and the matter
has been repeatedly dealt with by the Supreme Court, the last occasion being in
Raghukul Tilak’s case) in holding that the Governor is in no sense either a
representative of, or an agent of, or a subordinate of, the Government (or
President) of India. The only occasion when the Governor becomes subordinate to
the President is when the powers of the State Government “and Governor” are
taken over by the President under Article 356. These are then given to the
Governor to be exercised by him on behalf of the President as his agent.
The Governor represents not the Government of
India but the State of which he is the Head. His oath of Office requires him
not to look after the welfare of the people of India but “to devote (him) self
to the service and well-being of the People of (his) State”.
It is true that the Governor is appointed by
the President and holds office for five years subject to the pleasure of the
President. But the question is what, in the spirit of the Constitution and of
federalism and in law, “the pleasure of the President” means. This phrase was
introduced into this Article because, unlike the President of India who can be
removed by impeachment, there is no other provision in the Constitution by
which a Governor who behaves in an outrageous manner can be removed. Obviously
it was assumed that the reasons for which the pleasure of the President could
be withdrawn would be similar to those which would justify a Presidential
impeachment.
It could not possibly be the whim of the
Government at the moment in power in Delhi for that would make nonsense of the
whole institution of the office of the Governor. It is a pity that neither the
Home Minister nor the President chose to ask the Attorney General of India (who
is the highest legal advisory authority in the country) on the Constitutional
validity of the action proposed to be taken. It would surprise me greatly if a
man of Mr. Soli Sorabji’s known constitutional knowledge and unimpeachable
integrity could possibly have held that the removal of the Governors was
Constitutional simply because the Government at the Centre had changed.
The true function of the Governor is to
represent not the Centre but the people of his state and to fight their battles
with the Centre; not vice versa. He has to be “in tune” not with the party in power
at the Centre for the time being but with his own people as represented by
their elected representatives. He must necessarily, in giving advice to his
Chief Minister and Cabinet, which is really his most important role, bear in
mind the national interest --- which is not always coincidental with the
interests of the party in power whether at the Centre or in the State. It is
for this reason that it has been stressed repeatedly (and the latest authority
is the Sarkaria Commission) that Governors should never be active politicians
but men of eminence who can distance themselves from the eternal battle of
party politics.
Where the office of the Governor has been
abused by the appointment to it of active serving politicians, it would have
been fitting for the President to have withdrawn his pleasure. But to ask for
the resignation of all the Governors of all the States is to reduce that office
to that of a party hack. Now that the precedent has been set that Governors
hold office at the pleasure of the party in power at the Centre, the Governors
becomes an agent of the Central Government. His function becomes, contrary to
his oath of office, looking after the interests, not even of the Centre but of
the party in power at the Centre. He becomes, in effect, an opponent of State
autonomy.---INFA
(Copyright, India
News and Feature Alliance)
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Electric Vehicles: IS THE SHIFT IMMINENT?, By Dhurjati Mukherjee, 16 February 2022 |
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Open Forum
New Delhi, 16
February 2022
Electric
Vehicles
IS THE
SHIFT IMMINENT?
By
Dhurjati Mukherjee
Electric vehicles are
causing a buzz. Not only aren’t these being promoted to tackle the looming environmental
crisis, but the consumer’s choice is slowly changing. The demand, be it four or
two wheelers, is steadily picking up. From environmental perspective, the EVs are
the future of the auto industry in India as in many other countries.
The thrust has been
clearly noted in the recent Union Budget with the government policy of battery
swapping expected to give a boost to the domestic EV industry, specially for public
transport, as it will provide an affordable solution to the charging issue. Industry
stakeholders said the policy will help develop the infrastructure needed to
make EVs improve their use in public transport as also for general users.
In fact, the
government’s EV policy ‘Scheme for Faster Adoption & Manufacturing of
(Hybrid & Electric Vehicle in India’ has seen a big boost from Rs 800 crore
to Rs 2908.28 crore in the budget for 2022-23. E-mobility is all set to get a
major impetus with the announcement of a battery swapping policy with the
provision of land for establishing charging stations at scale. The target obviously,
would be to have more EVs on the road in the coming years.
That India is
destined to be a manufacturing hub for electric vehicles within the next five
years was forecast by Union Road and Transport Minister Nitin Gadkari, stating that
several countries no longer want to deal with China following the COVID-19
crisis. Gadkari asked Indian automotive companies to boost their EV technology
and also to focus on finding alternatives to lithium-ion battery tech to help
make India the next global manufacturing hub for electric vehicles. “I am
confident that in five years, India will become the number one hub for
manufacturing electric buses, cars and two-wheelers. There is also a blessing
in disguise that a majority of countries are not interested in dealing with
China anymore. So, now there is a huge potential for India,” he had pointed out
at a webinar titled ‘India’s Electric Vehicle Roadmap Post COVID-19’.
So far China has been
on top in terms of EV production globally by producing over 80 percent of all
EVs. It has the fourth largest reserves of lithium in the world, hence giving
it a monopoly in the lithium-ion cell market. Lithium-ion battery packs
are currently used the most for powering from small electric two-wheelers to
electric commercial vehicles.
It may be recalled
that the government launched the National Electric Mobility Mission Plan 2020
in 2013 to enhance fuel security as also to address vehicular pollution through
the promotion of hybrid and EVs. The government launched the Faster Adoption
and Manufacturing of Hybrid & Electric Vehicle scheme under NEMMP, 2020 in
2015-16. The scheme was to make hybrid and EVs as the first choice for buyers
instead of internal combustion engines and reduce liquid fossil fuel
consumption in the country.
Since April, 2019,
the outlay of the scheme (FAME-II) has been enhanced to Rs 100 billion for a
period of three years, mainly to offer upfront incentive on the purchase of EVs
and also to establish the necessary infrastructure for electric vehicles.
Though higher EV sales had not picked up initially, from early 2021 the trend
is changing as a lot of manufacturers of four wheelers and two wheelers have
entered the market.
Recently, the
governments of Tamil Nadu, Punjab, Telangana, Maharashtra, and West Bengal
invited the auto company Tesla to set up shop in their respective States. This
open invitation was a response to company founder Elon Musk’s tweet that
Tesla was “facing a lot of challenges” launching their EVs in the country. The
enthusiasm with which the five States have rolled out the red carpet for Tesla
isn’t surprising. Estimates pegged
the market opportunity for the electric vehicles sector in India to be
worth approximately $206 billion by 2030. Despite contributing less than
one per cent of all vehicle sales in the country, overall EV sales are
rising with over 50,000 new registrations each month.
Governments are thus keen to set
up shop and manufacture domestically. However, these companies would rather
sell completely built units (CBU) made outside the country. Subsequently,
Tesla, Audi and Hyundai have urged the Modi government to cut import
duties and help bring down prices and generate demand for EVs in
India.
However, the
government remains unmoved and maintains the 100 per cent import duty on CBUs
manufactured abroad. Instead, it has been pushing for greater localisation of
EV manufacturing through multiple policy measures FAME-II. Additionally, it has
launched several production linked incentive schemes for manufacturers in the
automobile, components and advanced chemistry cell battery sector to
develop indigenous supply chains for critical EV components. To boost
sales, it has also launched several consumer-centric incentives such as
tax exemptions, subsidies and interest subvention schemes, intended to trigger
a mass demand for EVs.
For EVs production the
most important raw materials such as lithium, cobalt and nickel, which are
used to make lithium-ion (Li-ion) battery cells, are not available in the
country. Consequently, Indian manufacturers must rely heavily on
imports of battery cells from China, Japan, Korea, and Taiwan and assemble
them into battery packs. Though there is optimism and encouraging response from
investors under the PLI scheme to manufacture ACC batteries domestically, most
bidders are expected to start manufacturing only from 2025. It is thus
quite natural that India’s import-driven strategy, for domestic assembly of
critical battery packs, will continue for a few more years.
Additionally, the
manufacturing of electric motors and power electronics requires critical raw
materials, deep technological expertise, and large capital investments to
manufacture – all of which India lacks. Thus, import dependency has been the
only option for domestic manufacturers to secure critical parts for EV
assembly.
Besides, domestic EV
manufacturers are exposed to increasingly volatile global supply chains and
higher costs due to Covid-related disruptions and the US-China trade
war. The prices of lithium carbonate and lithium hydroxide have risen by over
400 percent and 255 percent respectively since beginning of 2021. Similarly,
prices of praseodymium and neodymium oxide, used to make magnets for electric
motors, have almost doubled in the past 15-16 months. As a result, some
manufacturers hiked prices of their EVs to counter the rise in raw
material cost.
Some technical
experts have suggested that electro-chemical energy in the form of metal air
batteries could be the choice of the future, at least for India. Metal air
batteries can match the driving range of conventional internal combustion
engine vehicles and reload full energy to full energy capacity in less than
five minutes.
Significantly, much research
has taken place on such batteries during the period 2014 to 2020. Unlike
conventional batteries, metal air batteries utilise oxygen from the atmosphere
at the cathode. These have higher energy density (energy per unit weight)
compared with lithium batteries. Aluminum can be used as the anode of metal air
batteries as the country has abundant bauxite deposits in the country. The
road to progress is certain only if the Government does not put any brakes and
aids the EV manufacturers to achieve its target.---INFA
(Copyright, India News & Feature Alliance)
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Polls Freebies Nautanki: PEOPLE’S MONEY, APNA MONEY, YAAR!, By Poonam I Kaushish, 15 February 20 |
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Political Diary
New Delhi, 15 February 2022
Polls
Freebies Nautanki
PEOPLE’S
MONEY, APNA MONEY, YAAR!
By
Poonam I Kaushish
In
the ongoing five States ‘Vote Me’ no-holds-barred-free-for-all electoral nautanki Parties are raining promises topped
by luscious lip-smacking freebies for everyone,
from free electricity and water for the aam
aadmi to farm loans waiver for the debt-ridden kisan to monthly payouts for women, elderly and unemployed. All to
cream the electorate at the husting, thereby converting political sops into
vote percentages!
Whereby,
social and economic upliftment is weighed on the scales of vote-bank politics. Big
deal if the financial implications of these run into thousands of crores of
rupees further staining coffers already whimpering under heavy financial
burdens. Silly me, forgetting in rajniti,
public funds translate into netas spending
our money!
Leading
the pack is none other than the BJP in UP which woos voters with two crore
tablets and smartphones for students worth Rs 20,000 crores, two free cylinders
every Holi and Diwali totaling Rs 4000 crores, free electricity for irrigation
costing Rs 2000 crores, Samajwadi aces it to 300 units free electricity valued
at Rs 17,500 crores, Rs 1500 to 25 lakh poor and women at Rs Rs 4500 crores, 22
lakh jobs, 33% job quota for women and free education for girls.
In
Punjab Congress announces homemakers to get Rs 2000 per month and 8 LPG
cylinders annually, 10th pass girls Rs 15,000, free electricity to
farmers, 11% hike in DA for Government employees and Rs 3 cut in power rate. In
Uttarakhand it woos with 100 units free power, in Goa Rs 6000 to poor families,
resumption of mining etc.
Aam
Aadmi Party assures Rs 30,000 crores farm loans waiver, 300 units free power,
Rs 1000 for every women in Punjab, Rs 3000 for unemployed in Goa alongside
Griha Aadhar scheme for 20,000 women. The TMC ups it to Rs 5000 for women, Rs
4000 to fishermen, building 50,000 subsidized homes on Government land in Goa …
an endless list. All merrily white-washing the huge debt burdens.
True,
Parties are obliged to be seen as populist as it would be stupid to wish away
symbolism and political lollipops to entice the electorate. But do our
narcissist leaders need to act like modern-day feudal maharajas? Whereby, deprived with famished bellies and tattered
clothes wait for hours for their mai-baaps
to dole out money which doesn’t belong to them. Given the aam janata translate into just sterile statistics to keep the
vote-bank tillers ringing.
Questionably,
where do they get monies to fund these doles? By taxing us, the people. Should
our hard-earned tax money be used to boost Parties electoral vote-banks? No. Shouldn’t leaders or their Parties pay
for it from their pockets or funds? Absolutely. Should loans be waived? No.
Certainly
it is nobody case that citizens should be ignored. However, the harsh truth is
political promises in the economic sphere should not cross prudence limits,
where it starts hurting the economy as a whole. Notwithstanding, assurances of
loan waivers, cheap rice, free electricity can be justified on grounds of acute
poverty, economic distress and unemployment.
Bluntly,
we pay taxes for growth and development of the country, better educational
institutions, health care, hospitals, infrastructure etc. Not poll freebies which are just hot air and
an invitation to disaster which will neither help enrich a citizen’s life nor
provide roti kapada aur makaan. None
sees the danger of economic derailment as the biggest losers are poor, weak and
under-privileged in whose name these giveaways are justified.
Alas,
sound economic sense has been surrendered to political gamesmanship as populist
shenanigans yield better electoral rewards than reasoned issues and sustainable
programmes. Also, given the economic logic that there is no such thing as a
free lunch, a populist scheme is invariably paid for either in the form of
higher taxes or increasing inflation.
Clearly,
underscoring what ails India and its burgeoning poor is not poverty, which can
be corrected, but our netagan’s ruthless
heartlessness sans humility and empathy for the garib. Worse, it exposes their sheer ennui and paucity of ideas
along-with accentuating their moral bankruptcy. And a perspective completely
divorced from reality.
Consequently,
they have consistently failed to evolve a strategy of development which would
take into account our pluralism and fluctuating economic disparities. Moreover,
by providing free candies to voters the masses have become dependent on
politicians resulting in their inability to critically evaluate leaders leading
to no true empowerment as people expect elected leaders to make good their
promises.
Only
to be disappointed given the level of dishonesty, populism and irresponsibility
which governs our political system along-with a leech-infested environment of
the uundata taking it all, our carpetbaggers
refuse to let up.
Pertinently,
last month the Supreme Court asked Election Commission to frame guidelines to
stop Parties from promising “irrational freebies from public fund.” Referring
to the Subramaniam Balaji vs Tamil Nadu Government case May 2013, it directed
the Commission again to maintain a level playing field during elections. “Although
it cannot be construed as ‘corrupt practice’, distribution of freebies shakes
the root of free and fair elections and influences people,” it emphasized. Though under Section 123 of Representation of People
Act nothing barred Parties from promising voters freebies in their manifestos.
Undoubtedly,
a code of governance and conduct of ethics is imperative to minimize the
Executives’ unjustified misuse of tax-payers hard earned wealth. A code which
makes it obligatory for Parties to inform EC where money will come from to
implement their free giveaways and if they will raise taxes, reduce allocation
for these programmes once in power.
Two,
it would be beneficial for Parties to offer people permanent solutions to their
problems in election manifestos instead of slew of seemingly advantageous, but
temporary stop-gap measures. Three, the EC needs to penalize Parties who use
the quick exploitative mechanism to win people’s votes.
Clearly,
our polity needs to draw a distinction between welfarism and populism.
Welfarism takes into account needs of different sections of society as a part
of a large development framework. Populism is purely guided by vote-banks.
Albeit, granting concessions which have no economic rationale and are not part
of the larger economic planning, as enunciated by a Government.
Time
our netagan realize economic reform and
populism do not go hand in hand. Populism will only provide immediate succour
at the future’s expense. It is no remedy for neglect of education, health,
faulty priorities in industrialization and under-investment in rural areas. Instead,
they need to concentrate on the big picture. Wherein, energies are channelized
to address poverty through faster, broad-based growth, supported by
well-functioning delivery mechanisms. The effort must be to reduce number of
people in need of handouts.
The aam aadmi is no fool. Each populist
slogan only accentuates his growing awareness whereby he could lose faith in
politicians and the system of governance. Public accountability is
indispensable in a democratic set-up. Parties cannot afford to promise doles of
hard earned tax-payers money on private populist whims. The time to draw a ‘lakshman rekha’ on vote-bank politics as
democracy cannot allow exercise of public funds as private spending. What says
you? ---INFA
(Copyright, India News & Feature Alliance)
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