8 January 2015

India's healthcare crisis


The wide disparity between the best healthcare & quackery that much of the population must endure is partly to blame for India's apathy

Whether Indians in ancient times discovered algebra and the Pythagoras theorem before "selflessly" passing them on to the Arabs and the Greeks as Science and Technology Ministersaid last week is for agile historians to ponder. Widely accepted is that Indians in ancient times studied the science of logic. Whether our government does in 2015 is debatable.

What is one to make of the plans for the spectrum auction in February that will drive prices through the roof and leave us short of capacity in 3G even as the government tom-toms its plans for Digital India at every opportunity? Even more bizarre is the lack of focus on healthcare, especially for mothers and babies, while holding forth about India's demographic dividend at every investors' forum in the country.

Reuters reported on December 23 that the 2014-15was going to be cut by about $950 million, down by about 20 per cent from the Budget allocation of $5 billion. Cuts in the healthcare Budget in the mid to high teens have been true every year for the past few years as the time comes to meet fiscal deficit targets - but this year was supposed to be different.

The Bharatiya Janata Party manifesto promised universal healthcare and a focus on rural health, for starters. Just days after the news that the healthcare Budget was to be cut, the was unveiled. People with incomes of less than Rs 1,640 in rural areas and Rs 2,500 in cities are to qualify for medical assistance. Primary care is to be free for all. The policy also makes a case for more than doubling government spending on healthcare from 1.04 per cent of gross domestic product, among the lowest in the world even among poor countries, to 2.5 per cent.

Anyone with a basic knowledge of arithmetic would notice that the cutting of the health Budget by almost $1 billion and expanding coverage to all does not quite add up. In fact, the on Investing in Health study of 2013 pegged at $23.6 billion annually what India would have to spend over the next 20 years to achieve a convergence with global levels on infectious disease, child and maternal mortality rates.

Impossible? Perhaps, but we should be trying to move in that direction as if the country was in an emergency. Which, of course, it is, for the parents of babies dying from diarrhoea because of the lack of rehydration salts and zinc that cost all of Rs 15 each. In total, 1.4 million Indian children die before the age of five.

Where would all the money come from? India could redirect at least some of the subsidies lavishly spent on fertilisers (total subsidy for 2013-14 about $11 billion) and petroleum (about $13.5 billion over the same period). Instead of encouraging the excessive use of fertilisers on our farms, and of liquefied petroleum gas cylinders to the extent that some middle-class families hook them up to their water geysers, or of diesel for SUVs as we have done historically, we would do better to invest in healthcare.

Far from aspiring to global averages, India trails poorer countries such as Cambodia, Bangladesh and, heaven help us, Nepal on yardsticks like inoculating babies against diphtheria and tetanus or even the percentage of mothers who breastfeed their babies.

Despite some improvement over the years, what India's poor performance underlines is both too little money being spent on healthcare as well as inefficient primary healthcare systems in many states. As K Srinath Reddy, the president of the Public Health Foundation of India, puts it, the "metric" for success should be the life expectancy of a tribal girl in Madhya Pradesh.

The Gates Foundation in India has targeted turning around high maternal mortality numbers in Bihar and Uttar Pradesh (UP), where many women die in childbirth when wounds turn septic - because midwives and mothers-in-law use cow dung or oil as a salve where the umbilical cord is cut. The foundation's head, Girindre Beeharry, says the Budget next month offers an opportunity to "think big and act big" on healthcare. Likening healthcare spending to a funnel, he says India needs to spend significantly more at the "mouth" and also manage the efficiency of the "stem" that carries that funding to, say, mothers and children needing neonatal care. Working in UP, the foundation has used mobile cards, or mobile kunjis, to help health workers disseminate information to mothers on breastfeeding and the like as well as a recording of a "Dr Anita" that mothers can call into to get tips on looking after their babies. States like Tamil Nadu and Kerala, where I have followed energetic primary healthcare workers making house calls to new mothers on a reporting assignment years ago, show how it can be done.

Rampant absenteeism of doctors and nurses at primary healthcare centres in many of India's 640,000 villages cannot perennially be used as an excuse for withholding funding from healthcare. In Rajasthan last summer, I was impressed to hear the government was considering bussing villagers to primary healthcare centres in towns. It might fail, but the logic was straightforward enough. "Even a saintly doctor needs a small room with a toilet (to rent). We have to accept ground realities," said Rajiv Mehrishi, then chief secretary of Rajasthan and now finance secretary in New Delhi.

The wide disparity between the best healthcare in the country and the quackery and absenteeism that much of the population must endure is partly to blame for India's apathy. With the spread of drug-resistant tuberculosis and antibiotic-resistant infections to the middle class in the cities, we are at a point when the health epidemic is about to hit home, even in New Delhi. As Kaushik Basu observed recently, if poverty were a communicable disease, we would have found more energetic solutions to it.

PM's address at the Inauguration of Pravasi Bharatiya Divas



PM calls upon the Indian diaspora across the world to unite as a positive global force in the cause of humanity


The Prime Minister, Shri Narendra Modi, today called upon the Indian diaspora across the world to unite as a positive global force in the cause of humanity. In his inaugural address at the Pravasi Bharatiya Diwas at the Mahatma Mandir in Gandhinagar, the Prime Minister recalled that exactly 100 years ago, a Non Resident Indian - Gandhi - had returned to India to serve the people. Today, he said, he was welcoming NRIs from across the world as a Non Resident Gujarati.

The Prime Minister said NRIs are present across the world, in more than 200 countries. "India is global because of you," he told the gathering. He said that in the past, Indians had travelled across the world in search of opportunity, or to gain knowledge and exposure. "Today, opportunities beckon you in India," he asserted, adding that today, the world looks at India with hope. He said times are changing quickly, and India is rising with great strength.

The Prime Minister exhorted the Indian diaspora to contribute to India`s success in any way possible, including knowledge, expertise or skills. The Prime Minister mentioned in particular, the Namaami Gange project to clean the River Ganga, and make it a source of economic empowerment for 40 percent of India`s population. He said he was sure all NRIs would be inspired to contribute to this cause.

The Prime Minister welcomed the dignitaries from Guyana, South Africa and Mauritius. He recalled how Indian festivals such as Holi and Diwali are enthusiastically celebrated in Guyana. He recalled that today - January 8th - was the founding day of the African National Congress in South Africa. He mentioned that Mahatma Gandhi`s birth anniversary - October 2 - is observed in Mauritius with even greater vigour than it is observed in India.

The Prime Minister called upon NRIs across the world to forge and take pride in a common identity and heritage, and to use this strength collectively. He said even if a solitary NRI is present anywhere in the world, India is alive and present in that corner of the world through him.

The Prime Minister said he had met representatives of 50 countries since assuming office, and he could say with confidence that rich or poor, all nations across the world, today feel that their goals and objectives can be met in partnership with India. He said this was a rare opportunity, and it was now upto everyone to use this opportunity for the benefit of humanity, and for India`s benefit.

The Prime Minister said the world was showering affection on India, as was evident from the fact that a record 177 nations out of 193, had co-sponsored India`s resolution on International Day of Yoga at the United Nations.

External Affairs and Overseas Indian Affairs Minister's Address at the Inaugural Session of Pravasi Bharatiya Divas 2015
Pravasi Bharatiya Divas 2015

Following is the text of the External Affairs Minister`s address at the Pravasi Bharatiya Divas - 2015
“Let me, at the outset, extend a very warm welcome to all of you, to this Pravasi Bharatiya Divas. It is apt that this year PBD is being held in Gujarat, marking the 100th Anniversary of the return of Mahatma Gandhi to India from South Africa. Bapuji gave shape and character to India`s freedom struggle. He demonstrated the power of non-violence, by precipitating the disintegration of the mightiest empire in the world at that time. He also fought against indentureship and the exploitation of Indians around the globe.

It is a fitting tribute to Bapu that we have with us today Hon’ble Donald Ramotar, President of Guyana, as the Chief Guest. Our warm and friendly relations are embedded in historical, cultural and traditional links. We have just commissioned well-known sculptor and Padma Shri awardee, Biman Das, to build a monument dedicated to the arrival of Indian indentured labourers in Guyana. Excellency, we look forward to taking our relationship to greater heights, for the mutual benefit of our peoples.

Friends, it is also a particular pleasure for me to welcome our Guest of Honour, Hon’ble Madam Mashabane, the Foreign Minister of South Africa. Excellency, your presence here today underscores the value you attach to our common legacy and cooperation in the struggle for freedom from colonialism and oppression. I am happy to note that South Africa is a partner country at the Vibrant Gujarat Summit being held in Gandhinagar from 11-13 January 2015.

We are pleased to have with us Vice Prime Minister of Mauritius, Hon’ble Mr. Showkatally Soodhun.

The historical and civilizational connection of Mauritius with India is so deep that they take pride in calling the country "Chhota Bharat”.The PIOs in Mauritius celebrate the arrival of Indian indentured labourers as `Aapravasi Divas`which I had the privilege of attending two months back. Gandhiji visited Mauritius in 1901 and as a tribute to him the National Day of Mauritius is celebrated on March 12, which is the date of launch of the Dandi Salt Satyagraha.Owing to the strong Diaspora ties and the great pride in our shared ancestral heritage, Mauritius has been an active participant in the Pravasi Bharatiya Divas (PBD) since its inception in 2003.
I respectfully welcome the Hon’ble Prime Minister without whose guidance and leadership this event would not have been possible at this scale. I welcome Governor of Gujarat Shri Kohliji for gracing this occasion.I welcome Smt. Annadiben, Chief Minister of Gujarat; Gujarat happens to be the partner state of PBD this year. I welcome my colleagues Shri Ravi Shankar Prasad and Shri Jayant Sinha who have helped us in releasing the commemorative stamp and coin. I welcome my colleague Gen. V.K. Singh, MOS who has personally supervised all arrangements for the PBD. Last but not least, I welcome Secretary MOIA Shri Soni who has executed our decisions with speed and efficiency.
Friends, the term diaspora, in ancient Greek, refers to "a scattering or sowing of seeds". The presence of Indians abroad can be attested to from the days of remote antiquity. Our classical texts describe the long journeys that saints and monks undertook for the spread of knowledge, peace and love. This was followed by several waves of outward migration over centuries, from the medieval period to the colonial and then the post-independence era, resulting in diverse communities of people of Indian origin in various parts of the world. The present-day travel of Indians as professionals, labourers, traders and entrepreneurs to the rest of the world is a continuing saga of Indian Migration.Our common bond, however, continues to be the mother tree – India.

The Indian diaspora today constitutes an important, and in some respects unique, force in world culture. In the past couple of decades, it has grown into an energetic and confident community of over 25 million that has given India a presence in many parts of the world. However, it is not a one-way interaction that benefits only one side. It pleases all Indians when the Overseas Indian community is respected for its work culture, discipline, successful integration with the local community and for its outstanding contributions in their countries of residence. A successful, prosperous and politically influential diaspora is an asset to India, much as a strong and self-reliant India would be a source of strength and inspiration for the diaspora. This synergy acts as a vibrant bridge between us and sustains our relationship.

The Government of India is determined to work closely with the diaspora to leverage each other’s strengths to mutual benefit. The Prime Minister himself has taken the lead in reaching out to the Overseas Indian community and engaging you. We welcome entrepreneurs, investors and professionals from the diaspora to partake in our endeavour to develop the motherland and restore it to its past glory. I promise you that it will be a mutually rewarding and satisfying partnership. I believe you have the unique insights, perspectives and the extensive natural links that can make this partnership work.


The Prime Minister said he firmly believes that NRIs are a big strength of India, and India can make a global impact by reaching out to them. The Prime Minister said he was happy to announce that he had fulfilled all promises made to NRIs, such as lifelong visa for PIO cardholders, merging of PIO and OCI schemes, visa on arrival for 43 countries, and electronic travel authorization. 

7 January 2015

solar energy

With about 300 clear, sunny days in a year, India's theoretical solar power reception, on only its land area, is about 5,000 trillion kilowatt-hours (kWh) per year (or 5 EWh/yr).[7][8][9] The daily average solar energy incident over India varies from 4 to 7 kWh/m2 with about 1,500–2,000 sunshine hours per year (depending upon location), which is far more than current total energy consumption. For example, assuming the efficiency of PV modules were as low as 10%, this would still be a thousand times greater than the domestic electricity demand projected for 2015.[7][10]
The amount of solar energy produced in India in 2007 was less than 1% of the total energy demand.[11] The grid-connected solar power as of December 2010 was merely 10 MW.[12]Government-funded solar energy in India only accounted for approximately 6.4 MW-yrs of power as of 2005.[11] However, India is ranked number one in terms of solar energy production per watt installed, with an insolation of 1,700 to 1,900 kilowatt hours per kilowatt peak (kWh/KWp).[13]25.1 MW was added in 2010 and 468.3 MW in 2011.[14] By end September 2014, the installed grid connected solar power had increased to 2,766 MW,[15] and India expects to install an additional 10,000 MW by 2017, and a total of 20,000 MW by 2022

The Great Game Folio: Saudi succession

At a moment when the world is marvelling at the bold Saudi strategy of driving down oil prices — this week they dipped for a moment below $50 a barrel — King Abdullah, 90, has been hospitalised with pneumonia, setting off speculation about the kingdom’s stability and the international consequences of a political transition in Riyadh.
Abdullah acceded to the Saudi throne in 2005, when his half-brother King Fahd passed away. But Abdullah had been the crown prince since 1982 and was in charge of the kingdom during Fahd’s prolonged illness in his final years.
The king of Saudi Arabia is more than a mere monarch. He is the custodian of the Muslim holy places in Mecca and Medina, and exercises great political influence in the Islamic world. Since the fall of Egypt’s Gamal Abdel Nasser in the late 1960s, Saudi Arabia has acquired a decisive influence in shaping the regional order in the Middle East. The kingdom has been a strong ally of the Anglo-Saxon powers and enjoyed great clout in shaping the world economy.
With nearly a fifth of the world’s proven oil reserves and the very low costs of exploiting them, some have described the king of Saudi Arabia as the “custodian of the world’s oil prices”. As has been demonstrated in the last few weeks, Saudi Arabia remains the swing producer that can unilaterally determine the international price of oil.
Unlike in other monarchies, the Saudi succession has moved horizontally from one brother to another among the 40-odd sons that the founder of the kingdom, Abdul Aziz, fathered. Abdullah’s designated crown prince, Salman, is 79 years old; but he is said to be ill. The deputy crown prince Muqrin, the youngest of the second generation, is 69.
Some analysts worry that Abdullah’s death might generate considerable internal jockeying for power in Riyadh.

Others believe that Abdullah has had enough time to organise a smooth transition to the third generation of leadership. There is speculation that Abdullah has positioned his son, Prince Miteb, currently the head of the powerful National Guard, at the top of the heap in the third generation. Some are betting that when King Abdullah abdicates or passes away, his son Miteb could be appointed deputy crown prince.
REGIONAL TURBULENCE
The internal problems of succession look rather simple in comparison to the massive external challenges that Saudi Arabia faces.
If his predecessors had the reputation for political passivity, King Abdullah had brought a measure of assertiveness to Saudi Arabia’s foreign policy.
Amidst growing perception that Saudi Arabia is losing its clout in the oil market, Abdullah has taken on high-cost oil production around the world, including shale gas exploitation in the US, by forcing lower prices. This involves considerable cost to Saudi Arabia in the near term and Abdullah has been willing to run the risk.
Angered by the American empathy for the Arab Springand concerned that Washington might cut a nuclear deal with Iran, Abdullah has acted vigorously in the region. He sent troops into Bahrain to assist the minority Sunni elite in putting down a popular revolt. Abdullah offered strong support to the Egyptian army when it ousted the Muslim Brotherhood government in Cairo led by Mohammed Morsi. He actively sought to blunt the regional policies of Turkey and Qatar that backed the Brotherhood.
Fears of rising Iranian power and Tehran’s support to Shia formations across the region saw Abdullah back the Sunni militias in Syria and Iraq. The rise of Sunni extremism in the form of the Islamic State that threatens the interests of both Saudi Arabia and Iran has begun to encourage Abdullah to limit the regional rivalry with Tehran in the last few months.
DELHI’S ARABIA
Over the last decade, Abdullah unveiled a “Look East” policy that lent Asia greater salience in the Saudi worldview. Abdullah became the first Saudi monarch ever to visit China. His trip to India as the chief guest on Republic Day in 2006 was the first by a Saudi king in more than 50 years.
If Beijing moved with great speed to consolidate the partnership with Riyadh, the UPA government seemed somewhat slow in seizing the new opportunities that opened up in Saudi Arabia under Abdullah.
The NDA government, focused as it has been on the immediate neighbourhood and the great powers, has not devoted sufficient attention to the Middle East in 2014. As New Delhi turns to the Gulf in 2015 and tends to its high stakes in the region, an intensive engagement with Saudi Arabia must be at the top of Prime Minister Narendra Modi’s diplomatic priorities.
-

The city of activism and hope:delhi

Delhi has grown exponentially in the last couple of decades as a result of universal factors like migration, industrialisation, urbanisation. Delhi has always been a city of migrants. In the wake of Independence, it witnessed the influx of massive numbers of refugees who came from the newly born state of Pakistan. Post Independence, the city was built largely by these refugees, who came mostly from Punjab, imbuing it with an initial identity that was Punjabi.
Then Delhi became the capital of the new government of India. As the seat of political power, the city attracted a large number of government employees from all parts of the country. It also became home to politicians from different states. Thus, the city became a political and government bastion.
In the last two decades, the processes of globalisation, industrialisation and urbanisation have added waves of migration to the city. Many of these people were economic migrants who came to the capital in search of opportunity and employment. They came mostly from Uttar Pradesh, Bihar and West Bengal (though it is alleged that it was actually Bangladesh). Thus, in the late 1990s, the city’s character began to change from a Punjabi-dominated city to a city dominated by the Purabiyas, people from eastern UP and Bihar.
These various identities continue to influence public life in Delhi. Six decades after Independence, the city is the political nerve-centre of the country. Thousands of aspiring and established politicians throng the city, lending it an extremely political colour. Of late, politics has become a subject of derision thanks to a sustained smear campaign. Of course, there are good politicians and bad — but this is also true of every other profession. What is notable is that, in the last few years, the political identity of the city has also undergone a major transformation. Many young people have entered the political arena. The city’s seven Lok Sabha MPs are all young by the standards of Indian politics. In city politics, too, the dominant role is being essayed by young leaders.
Delhi today has emerged as a city of activism and hope, with an omnipresent youthful energy. A new socially and politically conscious generation is changing the contours of public life in the city. True, Delhi is notorious today for the high incidence of violence against women, and is labelled the “rape capital”. The crime rate in general is also high. But the city has also witnessed huge public mobilisations against corruption and crimes against women. Young Delhi knows how to demand accountability.
This is not a rowdy youth. Instead, it is aspirational, creative and, most importantly, socially conscious. There was
a time when people thought that urbanisation was bad. Now though, cities have become the lifeline for creative and aspirational young men and women, educated or not.
The city is not just about politics, though. It has an underbelly that is anything but political. Mahatma Gandhi used tosay that India lives in villages. What he meant was that the culture, traditions and ethos of our land are better preserved and protected in villages, which is largely true. Equally true is that the migrants who come to Delhi or any other city bring with them their cultures and traditions, too. That is why Delhi is in celebration mode all through the year. From the Tamil Pongal to the Malayali Onam and the Ganesh Chaturthi of the Marathis, from the Gujarati Garba to Holi and Durga Puja — when is there no celebration in Delhi?
Young men and women drive life in the city today. There is no cause for concern over their youthful activities, the clothes they wear or the places they visit. We must have faith in them and guide them, because they are no less idealistic than any previous generation of young people. We may find them at a bar or a coffee bar; watch them closely and they’ll likely be talking about a Narendra Modi or an Anna Hazare, discussing corruption and cursing social evils.
They have dreams in their eyes and ideas on their minds. Where we have failed is in giving them direction. We have to create excellent educational institutions in Delhi and improve the standards of our schools and colleges. We have to encourage sports in a big way. We have to create a conducive atmosphere for non-governmental activism. We have to allow youngsters to take over public life in the city. Perhaps we could hand over to them public spaces like parks and playgrounds and ask them to manage them?
Swami Vivekananda returned to India in 1897 after a four-year sojourn in the West. He reached Colombo and then travelled across the length and breadth of the country for over a year, ending his journey in Almora. He addressed hundreds of meetings during his year-long travel. He began his address at almost all of them by invoking youthful energy: “Oh, my dear young men and women of Madras! All my hopes lie on you,” he would say. Can we also say that
to our youth?

Google's Page named as business person of the year for 2014


Google's Larry Page has emerged as the 'business person of the year' for 2014, edging past the likes of Alibaba co-founder Jack Ma and Facebook CEO Mark Zuckerberg, according to Fortune magazine.



Page, who is Chief Executive Officer (CEO) and co-founder of Google, came on top in the 20 global corporate leaders' list compiled on the basis of various factors including company's performance, leadership style and total shareholder returns, the magazine said while bringing out its list.



Apart from Jack Ma and Zuckerberg, others in the race included Apple's Tim Cook and fast food chain Chipotle co-CEOs -- Montgomery Moran and Steve Ells-- and Fedex chairman & CEO Fred Smith.



Besides, five women have made the cut to the top 20 list.

Interestingly, Amazon's Jeff Bezos, who led Fortune list in 2012, failed to make in to the top 20 list.



As Google's core business continues to thrive, Page, who topped the list, is making "huge bets on new technology -ingestible nanoparticles, balloons that beam down broadband- that could define the future," the magazine noted.



Page and his company have packed a lot of evolution into just over 15 years of existence, it added.



The women contenders were Ultra Beauty CEO Mary Dillon, ITT CEO and President Denise Ramos, TJX Cos CEO Carol Meyrotwiz, Theranos Founder and CEO Elizabeth Holmes and Williams-Sonoma President and CEO Laura Alber.



The list is based on various parameters like financial results of the company including 12-month and three year growth in profits and revenues, company's stock performance and total shareholder returns over the same periods.



Besides, several non-financial elements like business influence, leadership style, strategic initiatives played a part in evaluation.

Improving an unworkable law

For the land-acquirer, the land act ordinance tries to lessen the indirect price of acquisition and transaction by diluting requirements for social impact assessments and referenda. For the land-loser, it not only retains all forms of compensation and rehabilitation, but also grows the number of those eligible for lucrative pay-offs

The government of India continues to search for the right way to do land acquisition. Last week, the Union Finance Minister announced an ordinance to amend the Land Acquisition Bill that his party, the Bharatiya Janata Party (BJP), had helped vote into law a mere 15 months ago. It had been in force for less than one year. That law, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (LARR), had been pushed through by the United Progressive Alliance (UPA) in its dying days. It had many detractors. Private industry said that it was the biggest obstacle to growth. Most State governments, including several Congress-led ones, thought it was unworkable. I wrote that embedded in LARR were the seeds of its own destruction.
That LARR would be changed was obvious in the first weeks after the BJP stormed to power at the Centre. There were whispers and much speculation, but nothing official. Now, it is out in the open and we can pass judgement. So, what does this ordinance reveal about the thought processes of the leaders of the Modi government? Is this a new approach? Is it any better than the old one? What could have been done differently?
Focussing on the land-loser

We need to ignore the predictable noises being made by the usual suspects. The pro-business crowd, from Goldman Sachs to Dalal Street, can barely suppress its elation. Several pro-farmer groups, especially significant non-governmental organisations like the National Alliance of People’s Movements, whose ideas had formed the initial blueprint of LARR, have called this a giveaway to the corporate sector. Anti-BJP political parties like the Congress, the CPI(M), the Samajwadi Party and the Trinamool Congress have vowed to fight these changes with all their might. All these people cannot simultaneously be right.
Compensating non-owners is a vital and non-negotiable element of LARR. How that will be achieved without the social impact assessments remains unclear.
To get analytical clarity, we need to start from basics. LARR was meant to make the acquisition process just. It was designed in the mode of the Congress’s other landmark laws on information, education, and food — using a rights-based approach — where the primary objective was to deliver “fairness” to the people affected by land acquisition. LARR expanded the definition of project-affected people and expanded the rights, protections and compensations for people who lose land or livelihood as a result of acquisition. All these were laudable and necessary. But LARR was also a purely political and fundamentally bureaucratic approach based on little or no recognition of some simple economic principles — on land markets and on transaction and opportunity costs. The underlying presumption was that the price of land matters to the land-loser but not to the land-acquirer; as a result, LARR raised the price of land acquisition to unsustainable levels.
Price matters to acquirer and loser

This price is not simply the money paid for acquisition and rehabilitation and resettlement. That is just one component of price, its direct component. There is a second component, an indirect price. This includes (a) transaction costs, which include the cost of doing social impact assessments, conducting referenda, running the massive new multilayered acquisition bureaucracy, etc. and (b) opportunity costs, which arise from the time taken to conclude an acquisition — doing social impact assessments, conducting referenda, etc. — time during which capital is not invested, infrastructure is not created, and production does not take place. If all the steps defined in LARR were accomplished in the allotted time, each acquisition would require about five years; in practice, it could take a lot longer.
The Modi government’s ordinance — unlike the UPA government’s law — is based on the principle that price matters to both the land-acquirer and the land-loser. Their interests are opposed, because the land-acquirer would like to pay the least he or it can get away with, and the land-loser would like to get the most he or it can manage. So, how does the ordinance solve this problem? Quite simply, as a matter fact, by splitting the direct and indirect prices for acquisition and keeping the direct prices unchanged while attacking the indirect prices.
For the land-acquirer, the ordinance tries to lessen, as much as it can, the indirect price of acquisition, the transaction and opportunity costs that have been listed. This it does by weakening or removing the requirements for social impact assessments and referenda. For the land-loser, the ordinance not only retains all forms of compensation and resettlement and rehabilitation, but also grows the number of land-losers eligible for these lucrative pay-offs by bringing into the ambit of LARR, 13 categories of acquisition that had been excluded earlier. These include the Land Acquisition (Mines) Act, the Atomic Energy Act, the Railways Act, the National Highways Act, and the Metro Railways (Construction of Works) Act. These inclusions were indicated in LARR, but are accomplished in this ordinance.
The reason this ordinance is likely to work in the short term and the reason it may run into trouble in the long term is the same — the underlying land market in India. Land prices in India are now the highest in the world (with the possible exception of China, where, for approximately the same reasons as in India, prices have reached unprecedented levels). For most pieces of agricultural land, these market prices are several times higher than the possible returns from keeping the land in agricultural use. When these very high prices are quadrupled or doubled, it creates a windfall for land-losers, a fortune they could never earn from agriculture. The Modi government is betting that the vast majority of people will be dazzled by the money and will acquiesce to acquisition. And by vastly increasing the scope of LARR, by bringing under its ambit several more types of acquisition and many more people, the government and the BJP can claim to be as pro-farmer as anyone else (even if the enlargement had been envisaged in the original law).
For the land-acquiring interest — be it the private or public sector — reducing the time for acquisition by several years, and thereby reducing the opportunity cost, is a huge benefit. When this is topped up with the reduction or removal of the cash cost of social impact assessments and referenda, it becomes a windfall for the acquirers too. LARR had placed an impossible double-burden on land acquirers: pay double or quadruple the highest prices in the world, and wait for several years to begin work on the ground. The first burden remains and its consequences are grave. What those consequences may be must be carefully worked out by people competent to do so. But the second burden has been mitigated by this ordinance. It should make life easier for the land-acquirer.
Price factor

What, aside from partisan politics, could go wrong? There are many things, but I will mention just three. First, the assumption that everyone responds to price is incorrect in India. There are priceless pieces of land that no amount of money can buy. The Niyamgiri hill region in Odisha where the Vedanta mining project ran aground is an example. Without referenda it may be very difficult to identify priceless land; which means that deadly face-offs over acquisition will continue to flare up. Second, the social impact assessment was meant primarily to take stock of the non-land-owning project-affected population. Compensating non-owners is a vital and non-negotiable element of LARR. How that will be achieved without the social impact assessments remains unclear.
Third and most important: the price of peri-urban land has reached such levels in the most dynamic urban regions of the country, that just doubling it (even without the added transaction and opportunity costs) may make many public projects unaffordable and private projects uncompetitive (especially in a globalised economy). The blunt instrument of acquisition is already inappropriate in many such settings; using LARR, even after the ordinance, it may be impossible. New, creative methods that make stakeholders out of landholders must be devised, perhaps by following the better outcomes of some of the experiments being attempted in some States.
Is this ordinance a better way than LARR? Yes. Is there a better way than this? Very much so, and it is based on finding State-level solutions rather than these top-down, one-size-fits-all strategies devised by the Centre. And above all, as a friend says, what we need are good intentions combined with clear analysis and hard, detailed work. Unfortunately, all these are in short supply.

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UKPCS2012 FINAL RESULT SAMVEG IAS DEHRADUN

    Heartfelt congratulations to all my dear student .this was outstanding performance .this was possible due to ...