SC -In anger, pain and shame

The recent decision of the Supreme Court (SC) to deliver coal-black justice raises a lot of questions. The judgment, very simply, is as follows. The SC has ruled that 214 of the 218 coal block allocations made since 1993 were arbitrary and illegal and hence, are cancelled; those who operated these cancelled mines over the last 20 years will now have to pay a fine of R295 per metric tonne produced. Estimates are that, to date, about 302 million metric tonnes (mmt) of coal has been produced by these illegal operators and, therefore, about R8,900 crore is owed to the government.

How logically valid is the judgment reached by the three honourable and learned Supreme Court Justices? The short answer: not very, because the judgment, in my not-so-learned opinion, is flawed on several important dimensions.

At the Financing for Economic Growth seminar, held at Gandhinagar on September 25, I opened by stating that it was a waste of time by the organisers to invite me and other experts to discuss economic issues. Over the last few years, it has become increasingly clear that the real experts on food policy, human rights, and coal policy (just to name a few) reside neither in the corridors of academia, nor in the corridors of professionals, bureaucrats or politicians. The real decision-makers are those engaged with the law; so, why not learn about optimal, fair, and legal policy by inviting the Supreme Court to send its representatives? I hope the organisers will take this serious suggestion seriously.

In anger

Some basic questions with regard to the judgment. This is the mother of all retrospective laws—to go all the way back to 1993 takes a lot of confidence, and leaps of law. Does India have no statute of limitations? How far back backward can one go? The Court states, citing a bad law—the Coal Mines Nationalization Amendment Act (CMNA), 1976—that the provision of a mining lease to any institution which is not “Central government, Central government company or Central government corporation” is illegal. This despite the fact that in 1993, the CMNA, 1976, was amended to allow for sub-leases to be granted if two conditions are satisfied: (i) the reserves of coal in the area are in isolated small pockets or are not sufficient for scientific and economical development in a coordinated and integrated manner, and (ii) the coal produced by the sub-lessee will not be required to be transported by rail. In other words, if the coal block had junk, it could be sub-leased and that the junk could not blacken our railroads.

There are several debatable aspects of the learned SC ruling. First, what legal basis is there for deciding that all coal allocations since 1993 are illegal? If the illegality was of such a magnitude, then how is it possible that no one (including the honourable Supreme Court) noticed it for 20 long years? If these actions were illegal, what about the ministers (including prime ministers) and senior bureaucrats who Okayed this decision? What is the punishment for them? And what about all the Justices who implicitly allowed such rampant illegal acts to take place? When will they be held accountable? Or punished? On accountability, can the Court apprise us to the status of Prashant Bhusan’s corruption case against Chief Justices of the Supreme Court? In 2010, Bhushan stated that “In my view, out of the last 16 to 17 Chief Justices, half have been corrupt”.

In pain

There is not only the ignominy of having your licenses cancelled, but also that the firms have to pay a penalty of R295 per tonne of mined coal. The SC takes the easy way out by claiming that they derived this figure from the CAG report which implicitly (in the judges’ view) did a correct calculation of illegal profits. Of course, it is the same ‘no-number-is-high-enough’ Vinod Rai, formerly of the CAG, who extravagantly claimed that there had been a loss of R1.86 lakh crore from the coal allocation scam and this yielded an average financial benefit of R295/tonne to the black allottees. As pointed out in several articles in 2012, the CAG report suffered from a terminal error in its estimation of coal “benefits”. It assumed an interest rate of zero in discounting the stream of future profits! If a discount rate of 10% is assumed, then the lofty scam figure of R1.86 lakh crore is reduced to only R74,000 crore. Even this estimate was in gross error because the price of coal assumed by CAG was the price received by Coal India —a much higher grade coal and one that can be transported by railroad.

Forget the time value of money (interest rate)—too complicated for Vinod Rai’s CAG and even more complicated for the Supreme Court. The hard facts that we have at our disposal are the profits obtained by Coal India, one of the Maharatnas of the public sector and a company which produces the finest and costliest coal in India. The public records of this company reveal, as shown in the accompanying table, an average post-tax profit rate of R239/tonne for the years 2006-2014. From the grades of coal specified, this average approximates the price of Long Flame Grade D coal.

Junk coal blocks (grade F and G) were allocated to the private sector, by design and intent. As a good public-sector monopolist, Coal India did not want to muddy its profits by developing these junk blocks. The average price of this coal is only 39% of Coal India’s price. If the same profit rate as that of Coal India is assumed for the black firms, a very generous assumption in favour of CAG-SC, the quantum of all the illegal profits made by the companies is R67 per tonne. Or instead of R8,900 crore being “owed” by the illegal coal firms, only R1990 crore is “owed”.

In shame: homosexuality

And since retrospective acts are in, how about the Supreme Court looking at some of its own questionable judgments of the past? For example, in December 2013, it ruled that homosexuality was a crime; what aspect of human rights, or the Constitution for that matter, allowed it to reach that questionable judgment? The Supreme Court overruled a 2009 Delhi High Court ruling in favor of decriminalising homosexuality. Another massively regrettable “retrospective” decision by the court. It had the chance to merely uphold the court ruling but it went out of its way to deem homosexuality a crime. So, zilch to the Supreme Court for its non-understanding of the time-value of money and even less for its non-recognition of human rights.

It is now time for checks and balances to the excessively questionable judgments of the Supreme Court. The honourable justices must realise that they are not infallible; they are human, and can make mistakes. And let us not forget how quickly the Supreme Court found the Emergency imposed by Indira Gandhi to be “Constitutional”. The time has come for the Modi government to act. It should collect the penalty as ordered by the Supreme Court, but it should only collect R1,990 crores. This money should be re-allocated to the cancelled firms for infrastructure development. And in addition, these firms should be rewarded for extracting coal profitably out of the refuse abandoned by Coal India.

Text of Joint Editorial by PM Shri Narendra Modi and Mr. Barack Obama

“As nations committed to democracy, liberty, diversity and enterprise, India and the United States are bound by common values and mutual interests. We have each shaped the positive trajectory of human history, and through our joint efforts, our natural and unique partnership can help shape international security and peace for years to come.



Ties between the United States and India are rooted in the shared desire of our citizens for justice and equality. When Swami Vivekananda presented Hinduism as a world religion, he did so at the 1893 World's Parliament of Religions in Chicago. When Martin Luther King Jr. sought to end discrimination and prejudice against African Americans, he was inspired by Mahatma Gandhi's nonviolent teachings. Gandhiji himself drew upon the writings of Henry David Thoreau.



As nations, we've partnered over the decades to deliver progress to our people. The people of India remember the strong foundations of our cooperation. The food production increases of the Green Revolution and the Indian Institutes of Technology are among the many products of our collaboration.



Today our partnership is robust, reliable and enduring, and it is expanding. Our relationship involves more bilateral collaboration than ever before - not just at the federal level but also at the state and local levels, between our two militaries, private sectors and civil society. Indeed, so much has happened that, in 2000, then-Prime Minister Atal Bihari Vajpayee could declare that we are natural allies.



After many years of growing cooperation since, on any given day, our students work together on research projects, our scientists develop cutting-edge technology and senior officials consult closely on global issues. Our militaries conduct joint exercises in air, on land and at sea, and our space programs engage in unprecedented areas of cooperation, leading us from Earth to Mars. And in this partnership, the Indian American community has been a vibrant, living bridge between us. Its success has been the truest reflection of the vitality of our people, the value of America's open society and the strength of what we can do when we join together.



Still, the true potential of our relationship has yet to be fully realized. The advent of a new government in India is a natural opportunity to broaden and deepen our relationship. With a reinvigorated level of ambition and greater confidence, we can go beyond modest and conventional goals. It is time to set a new agenda, one that realizes concrete benefits for our citizens.



This will be an agenda that enables us to find mutually rewarding ways to expand our collaboration in trade, investment and technology that harmonize with India's ambitious development agenda, while sustaining the United States as the global engine of growth. When we meet today in Washington, we will discuss ways in which we can boost manufacturing and expand affordable renewable energy, while sustainably securing the future of our common environment.



We will discuss ways in which our businesses, scientists and governments can partner as India works to improve the quality, reliability and availability of basic services, especially for the poorest of citizens. In this, the United States stands ready to assist. An immediate area of concrete support is the "Clean India" campaign, where we will leverage private and civil society innovation, expertise and technology to improve sanitation and hygiene throughout India.



While our shared efforts will benefit our own people, our partnership aspires to be larger than merely the sum of its parts. As nations, as people, we aspire to a better future for all; one in which our strategic partnership also produces benefits for the world at large. While India benefits from the growth generated by U.S. investment and technical partnerships, the United States benefits from a stronger, more prosperous India. In turn, the region and the world benefit from the greater stability and security that our friendship creates. We remain committed to the larger effort to integrate South Asia and connect it with markets and people in Central and Southeast Asia.



As global partners, we are committed to enhancing our homeland security by sharing intelligence, through counterterrorism and law-enforcement cooperation, while we jointly work to maintain freedom of navigation and lawful commerce across the seas. Our health collaboration will help us tackle the toughest of challenges, whether combating the spread of Ebola, researching cancer cures or conquering diseases such as tuberculosis, malaria and dengue. And we intend to expand our recent tradition of working together to empower women, build capacity and improve food security in Afghanistan and Africa.



The exploration of space will continue to fire our imaginations and challenge us to raise our ambitions. That we both have satellites orbiting Mars tells its own story. The promise of a better tomorrow is not solely for Indians and Americans: It also beckons us to move forward together for a better world. This is the central premise of our defining partnership for the 21st century. Forward together we go - chalein saath saath.”

Country’s first eToilet unveiled

Eram Scientific, manufacturers of the country’s first eToilet, on Tuesday unveiled the world’s cheapest unmanned, self-cleaning eToilet with inbuilt solar panel and metallic platform for schools.
“This is our contribution to the nation and comes as a response to the “Clean India Campaign” announced by the Central Government. It perfectly matches with the “Make in India” campaign as well,” said Siddeek Ahmed, chairman of Thiruvananthapuram-based Eram Group.
Built of stainless steel base, mild steel super structure and occupying 25 sq.ft space, the eToilet comes with a price tag of Rs.99,999 ex-factory, which is inclusive of insurance charges and one-year warranty.
It has got an inbuilt solar panel, which eliminates the need for electricity connection while the metal platform avoids civil construction too.
It has an automatic flush, which works before and after use, automatic floor wash, sensor controlled water usage and eliminates the need for manual cleaners in schools.
“The present problems in sanitations at schools are known to be not because of the dearth of toilets. The lack of maintenance and requirement for manual cleaning has made them dysfunctional. We are out to address that gap and that is why we are now launching this comprehensive solution for schools,” said K. Anvar Sadath, CEO.

Five Indian-Americans in Forbes list of US' richest

Five Indian-Americans have been named among the 400 richest people in the US by Forbes, a list topped by Microsoft co-founder Bill Gates for the 21st year in a row with a net worth of USD 81 billion.
Founder of outsourcing firm Syntel Bharat Desai, entrepreneur John Kapoor, Symphony Technology founder Romesh Wadhwani, Silicon Valley angel investor Kavitark Ram Shriram and venture capitalist Vinod Khosla are among 'The Richest People In America 2014' list by Forbes.
Forbes said 2014 was another record year for American wealth, when the aggregate net worth of the richest 400 Americans was USD 2.29 trillion, up USD 270 billion from a year ago.
"Thanks to a buoyant stock market, the richest people in the US just keep getting richer," Forbes said.
Gates is the richest American for the 21st year in a row, with a net worth of US 81 billion. The Microsoft chairman's stake in the software company he cofounded accounts for just under 20 per cent of his total net worth. His friend Warren Buffett, chief executive of Berkshire Hathaway, occupies the number two spot on the 400, a rank he has held since 2001 with a net worth of USD 67 billion.
Larry Ellison, who just announced that he was giving up the CEO role at Oracle, the software firm he founded, comes in at number three, with a net worth of 50 billion dollars.
Desai and his family rank 255 on the list, followed by Kapoor who is ranked 261, Wadhwani (264), Shriram (350) and Khosla (381).
Facebook co-founder and CEO Mark Zuckerberg is now the 11th richest person in the US, and the biggest dollar gainer on the list. His fortune soared to USD 34 billion, up USD 15 billion since last year, due to a sharp rise in the price of the social network's shares.
Desai, 61, and wife Neerja Sethi founded outsourcing firm Syntel in 1980 while studying at University of Michigan. The Indian Institute of Technology alumnus has a networth of USD 2.5 billion.
Kapoor, 71, debuts on The Forbes 400 as a serial entrepreneur who has founded two pharmaceutical companies that he has guided to exceptional success.
The bulk of his wealth is concentrated in shares of Akorn Pharmaceuticals, an Illinois-based generics manufacturer that Kapoor has been involved with since the early 1990s, and INSYS Therapeutics, a cancer-treatment maker that went public in May 2013.
Kapoor, whose net worth is USD 2.5 billion, also has a small chain of fast-casual Indian restaurants in Arizona called Bombay Spice, as well as Roka Akor Japanese eateries in Chicago, Scottsdale and San Francisco.
Wadhwani, 67, an Indian Institute of Technology Bombay alumnus has a net worth of USD 2.5 billion. Forbes said over the last decade, his galaxy of companies has expanded to 20 and is generating three billion dollars in revenues with 18,000 employees worldwide.
He is the recipient of the 2013 Forbes India 'Non-Resident Philanthropist Award' and sits on the boards of the Kennedy Center and the Center for Strategic and International Studies. Wadhwani signed Bill Gates' and Warren Buffett's Giving Pledge last year.
Shriram, 57, has a net worth of USD 1.87 billion. He was an early Google backer and has been a Silicon Valley angel investor since 2000. Through his Sherpalo Ventures, he has backed early-stage tech firms such as Zazzle and Paperless Post, as well as the frozen yogurt retailer Pinkberry.
Shriram made most of his fortune through Google and has been on its board since the company was founded in 1998. In June 2014, Shriram and his wife donated $61 million to engineering initiatives at Stanford University, which both of his daughters attended and where he is a board trustee.
Khosla, 59, has a net worth of USD 1.67 Billion and has run his own venture capital firm, Khosla Ventures, since 2004, following nearly two decades at VC firm Kleiner Perkins. His highest-profile investments have lately been in clean tech: wood-based biofuel, new types of batteries and water purification.
All together, the 400 wealthiest Americans are worth a staggering USD 2.29 trillion, up USD 270 billion from a year ago.
The average net worth of list members is USD 5.7 billion, USD 700 million more than last year and a record high. An impressive 303 of the 400 saw the value of their fortunes rise compared to a year ago. Only 36 people from last year’s list had lower net worths this year.
The list has 27 newcomers including Elizabeth Holmes the youngest woman on the list, and the youngest self-made female billionaire in the world.  Just 30 years old, the Stanford University dropout has built blood testing company Theranos into a firm that venture capitalists have valued at USD 9 billion.

India has the third largest ecological footprint: Report

After China and USA, India has the third largest ecological footprint in the world, according to a report released today.
China's share of ecological footprint, which is a measure humanity's demand on the planet, is a massive 19 per cent, followed by USA's 13.7 per cent and India at 7.1 per cent, The Living Planet Report 2014 said.
The top five countries, which includes Brazil and Russia, make up about half the global total.
"Humanity currently needs the regenerative capacity of 1.5 earths to provide the ecological goods and services we use each year," the report brought out by WWF and Global Footprint Network said.
China is ranked 76th in its per capita footprint but has the world's biggest national population and hence has the planet's largest national footprint.
India shifts from having the 136th largest footprint per capita to the third largest in total after multiplying population with per capita demand.
"The report underlines the importance of the choices we are making every day and their impact on the planet. It is imperative to take steps to ensure that all future development is sustainable," Ravi Singh, Secretary General and CEO, WWF-India commented on the report.
As per the report the population of fish, birds, mammals, amphibians and reptiles have declined by 52 per cent in the 40-year period.
It also highlights the dire situation of local populations due to increasing water scarcity and the alarming situation of depleting ground water resources and aquifers in countries like India, Australia and the United States.
These three countries with the highest water footprint also contain eight of the top ten most populous river basins experiencing almost year-round scarcity, a problem that is likely only to get compounded by climate change, population growth and developmental imperatives, the report added.

‘Punarjagaran’- Mass Awakening Campaign for youth to be launched on 2nd October, 2014

Ministry of Skill Development, Entrepreneurship, Youth Affairs and Sports has decided to launch ‘Punarjagaran’- Mass Awakening Campaign for Youth Participation in Nation Development across India from 2nd October 2014. ‘Punarjagaran’ aims at creating awareness among youth and empower them to become active partners in nation building activities. The programme will be launched simultaneously from four districts which are situated at extreme tips of India - Kanyakumari in Tamil Nadu, (South), Leh in Jammu and Kashmir (North), Okha in Gujarat (West) and Roing in Arunachal Pradesh (North East) and will culminate on 25th September 2015 at Mathura (UP). The yearlong Campaign also aims to make aware and educate youth on key issues in thematic areas, provide information on the avenues for skill development, encourage and empower them with the spirit of nationalism and volunteerism. The thematic areas of the campaign are encouraging Nationalism, promoting “Swachh Bharat, Shramadaan” and popularizing the recently launched “Jan Dhan Yojana”. It has been assessed that from Leh (J&K) and Okha (Gujarat) to Mathura (UP) the campaign will traverse through 20/21 districts each thus making a total of 40 districts, whereas in case of campaign from Kanyakumari and Roing to Mathura a total of 60 districts will be covered. Therefore, under this campaign youth from a total of 100 districts will be covered. In Roing (Arunachal Pradesh) the programme will be launched by Member of Parliament (Rajya Sabha) Shri Mukut Mithi. Chairman Zilla Praishad, Shri Sipi Elapra, along with senior officers of district administration will be the guests of honor. The programmes and activities include Pledge taking ceremony on Swachh Bharat Mission, cleanliness drive and organization of a 3 km rally. In Leh (J&K) the programme will be launched by Member of Parliament (Lok Sabha) Shri Thupstan Chhewang from the Polo Ground in the presence of senior officers of District Administration, members of NSS, NYKs Youth Clubs, Kendriya Vidhyalaya and Jwahar Navodya Vidhyalaya. The programme includes Administration of Swachh Bharat Mission pledge followed by youth convention. The resource persons will be giving a talk on development issues. This will be followed by a 3 km youth rally from Polo Ground traversing the Main bazaar and culminating again at Polo Ground. A massive cleanliness drive has been planned on the occasion. In Okha (Gujarat) the programme will be launched by Member of Parliament (Lok Sabha) Ms. Poonamben Madam. Senior officers of District Administration, Railways, Zilla Panchayat, members of NYKs Youth Clubs are scheduled to participate in the function. The programme will start with Prabhat Pheri followed by pledge taking ceremony and a 3 km Youth Rally from Railway station Okha to Nagarpalika Hqs. Essay and debate competitions, cleanliness drive etc. would be the other highlights of the launch function. In Kanyakumari (Tamil Nadu) Union Minister of State (Heavy Industries) Shri Radhakrishnan P would launch the campaign. Senior officers of District Administration, Zilla Panchayat, members of NYKs Youth Clubs, School and College students will be participating in the launching programme. A State Level Seminar on role of Youth in Participatory Governance would also be organized followed by a 3 km Youth Rally from Gandhi Mandap to Vivekananda Kendra. A Youth Convention has also been planned on the occasion. About 2000 Youth Participants are expected to participate in each of the four launch programmes.

Ozone layer recovering thanks to Montreal

• zone gas in stratosphere prevents 99.5% entry of UV radiation (255nm) on earth.
• Chlorofluorocarbons / freons: non-reactive, non-flammable, non-toxic. Used in Refrigerators, spray cans, insulation foam and propellant.
• Once they’re released in atmosphere, they reach stratosphere=> react with UV=> release Chlorine free radicals => Ozone broken.
• 1980s: Scientists realized Chlorofluorocarbons (CFCs) reach had damaged Ozone layer above Antarctica. Result?
  • Skin cancer, Cataract, Sunburns
  • Phytoplanktons die=> fish population declines.
  • Soil Moisutre content declines, plant proteins are mutated=> plant growth affected.
  • Fibers and Wall paints fade faster.
• Late 80s: Montreal Protocol signed, to cut down use of
  • chlorofluorocarbons (CFCs) / freons
  • Halons in fire-extinguishers
• 2014: CFC has declined by 90%, Ozone layer showing signs of recovery- as per United Nations Environment Program (UNEP) and the World Meteorological Organization (WMO).
• This will also prevented 2 million skin cancer cases per year.
• 2050: Ozone Layer will recover near mid-latitudes
• 2075: Ozone layer will recover near Antarctic.

Challenges:

1. CFCs are replaced with HFCs (Hydroflurocarbons). Although HFCs don’t deplete Ozone layer but they’re greenhouse gases, hence contribute to global warming.
2. Researchers found Carbon tetrachloride increased in atmosphere. This is a banned ozone-depleting carcinogenic solvent.
3. Meaning, some companies in the third world countries are still using it illegally, as a cheaper alternative to HFCs.