Myanmar: Beyond the mandate p.40 I Smart city event report p.70
DECEMBER 2015 Vol. - 02 Issue - 03 `60 RNI No: UPENG/2014/62662 ISSN 2455-0426 PRNO.UP/GBD-212/2015-17 Date of Publishing 04-12-2015 Date of Posting 07-12-2015
Near the Point of
no return
Editor-in-Chief Ajit Sinha Editor Anand Mishra Senior Copy Editor Ramesh K Raja Correspondents Lekshmi Parameswaran, Praveen Raman Ritika Bisht, Sagarika Ranjan Guest Writers & Contributors Kriti Nagrath, Raj Bhushan, Dr. Uday Salunkhe Graphic Designer Girdhar Chandra Fuloria, Sarvesh Dixit Web Architect Farhan Khan CORPORATE OFFICE Strategy Head Ajay Kumar VP Sales Gautam Navin gautam@governancetoday.co.in I 07840086704 Siddharth Verma siddharth@governancetoday.co.in I 9990091298 VP Strategic Alliance & Branding Salil Dhar salil@governancetoday.co.in I 7840086708 Sales & Marketing (Corp) Manoj Padaliya, Anupam Gupta, Shubham Gupta, Anjana Yadav, Vaishali Gupta, Sangeeta Mavi sales@governancetoday.co.in I 0120-4234008 Government Alliance Vaibhav Jaiswal I 07840086705 Advertisement Abhijeet Srivastava I 09990098572 Stuti Bhushan I 09999371606 Karamjeet Singh I 09990098732 HR & Admin Aarti Tiwari Accounts Executive Yogesh Chikara FOR SUBSCRIPTION CONTACT subscription@governancetoday.co.in ADVISORY BOARD Terry Culver Associate Dean, SIPA, University of Columbia Vinit Goenka National Co-Convener, IT Cell, BJP Amod Kanth General Secretary Prayas JAC Society Pratap Mohanty Former Dy Educational Advisor, MHRD, GOI Ranjit Walia Managing Counsel Walia & Co. Published By Ajit Kumar Sinha 713, 3BA - Tower No. - 4, River Heights, Raj Nagar Extn - Ghaziabad Uttar Pradesh-201003 Printed & Published by Ajit Kumar Sinha on behalf of Odyssey Infomedia Pvt. Ltd. Printed at Rama Offset Printers A-43, Sector - 10, Noida, UP - 201301 Editor-In-Chief: Ajit Kumar Sinha @ All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, and mechanical, including photocopy, or any other information storage or retrieval system, without publisher’s permission.
4 I December 2015
16 Near the point of no return
As the world congregates at Paris to talk climate change, there is a sense of déjà vu among negotiators, governments, environmentalists, scientists, protesters and media (At the time of going for print, the actual negotations were yet to start). Perhaps never in history has a non political talk attracted so much attention and expectation. There is a sense of urgency, as the feeling sinks in about the fact that we have reached a stage where doing nothing or taking half steps has an unimaginably horrendous implication for coming generations. There is also a grudging acceptance that the issue of climate change and the negotiations related to the same has been woefully lackadaisical. As policymakers discuss issues related to emission limits and financial assistance to developing world, and scientists figure out the implications of agreements in terms of actual impact on the ground, there is also a small but growing community that is thinking in terms of how we need to prepare ourselves to face the impact of what has already gone wrong. India too heads for talks with lot of hope, as it tries to wriggle out a respectable deal which allows it to contribute to the global cause of environmental preservation without compromising on its fight to pull tens of millions out of poverty. www.governancetoday.co.in
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Daniel Carmon Honorable Ambassador of Israel to India
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BOTH india and israel ARE HUNGRY TO CHANGE FUTURE
Indian INDC: Does it balance environment and growth? The hidden culprit
28 Push for clean energy 31
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The acknowledgement of strategic advantage of West Bengal is evident
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Upender Jit Singh Managing Director of WEBEL, Govt. of West Bengal
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Indian startup scene picking up like never before Riku Makela CEO, Slush
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Lungful uneasy - deteriorating air quality of India Fuel policy: Time to correct mistakes Beyond the mandate The start of a power struggle? Few for women sanitation New life for alternative medicines Going out of reach Putting lives before profit Shipping ministry: The exceptional performer Revolution on the anvil Slush: the annual start up jamboree The burden of pay hike ‘Governance Today’ successfully organizes Smart City-Smarter West Bengal Summit ‘The nearest approach to Sanskrit in Europe is Lithuanian’
December 2015 I 5
Myanmar: Beyond the mandate p.40 I Smart city event report p.70
DECEMBER 2015 Vol. - 02 IssuE - 03 `60 RNI No: uPENG/2014/62662 PRNo.uP/GBD-212/2015-17 www.governancetoday.co.in
Near the Point of
No returN
Editorial
Action, not words needed in climate change fight It is December and the famous Delhi smog has descended on the national capital, blurring visibility, delaying flights, causing accidents on roads and leaving innumerable children coughing. The smog, resulted from the burning of paddy in the agricultural belt around the national capital, has been known to be a major cause of environmental pollution in North India. Many reports have been published and many attempts have been made to stop the practice, but as is the case in every other cause of pollution and environmental degradation, the success has been pretty much nonexistent. The case of paddy burning and Delhi smog exemplifies the extreme weakness of our officialdom to fight climate change. India is one of those countries standing to lose the most because of climate change. This is because India is at a sweet but vulnerable spot as far as ecology is concerned. Its rivers are mostly glacier driven, which are in danger of melting because of temperature rise. Its cities will be in danger with the rise in sea levels. Its vegetation would wilt with rise in temperature and harmful gasses because of climate change, and finally, a large percentage of the population is expected to suffer from multiple diseases emerging out of climate change effected weather changes. Already, freak weather is resulting in crop failures that end in massive price swings in food items ranging from vegetables to pulses. Among the many causes of climate change and the rise of carbon dioxide in the atmosphere, one factor which often misses out is the environmentally suicidal activities of rural and urban poor. Even today, the overwhelming majority of rural people uses wood to cook, which is not only bad for health, but also for the environment. In urban area, the wood is replaced by coal, kerosene and plastic. These are extremely polluting and create multiple diseases which again hurts poor most. So, to an extent, poverty and the inability of the rulers to address the basic needs of the poor is also a cause of climate change. That being said, there is no alternative to severe and immediate action on curbing carbon emissions. Industry, transport, power generation all are heavy CO2 emitters, and have not been subjected to stringent action that is needed to reduce carbon footprint. Our power plants, which are coal dominated, are hopelessly inefficient, our vehicles are heavy polluters, and our urban planning is completely incapable to manage energy efficiently. The result is that on the one hand, our requirements are rising inordinately, and on the other, our means of serving those requirements are terribly environmentally unfriendly. Obviously this all has to change. In fact, the country needs to pursue environmental and climate cause on a mission mode, because failing is not an option. We have high hopes from the Paris climate conference. Regardless of whether 2 degree temperature rise limit is achievable or not, a legal agreement has to come though that would hold countries accountable for their actions and force them to be responsible stakeholders in global fight to preserve our planet. Much time has been lost in bickering over intricate issues of emission budgets, carbon credits and financial assistance. We have reached s point where luxury of dithering is no longer available. Leaders need to show courage and spine to come to an agreement and sell the agreement to their respective countrymen. Best regards
Ajit Sinha Editor-in-Chief www.governancetoday.co.in
December 2015 I 7
thus they spoke For the government, the only dharma is India first, the only dharma granth (holy book) is the Constitution of India... the nation will run only according to the constitution. Narendra Modi Prime Minister
My government is committed to fulfilling promises made to women during the election campaign. There was a surge of complaints from women about male members of the family resorting to drinking and creating nuisance, which also affected the education of their children. Nitish Kumar Chief Minister, Bihar
There is a marked change. There is greater political interference and the investigation mechanism will be provided by the government, which will make the Lokpal a puppet, like the CBI. The greater concern is about the Lokpal’s right to investigate Central ministers and officers. While I do not have a personal problem with that, this clause has been put in purposely to have the bill stalled at the Centre. Prashant Bhushan Senior advocate
When I chat with Kiran (wife) at home, she says, ‘should we move out of India?’ That’s a disastrous and big statement for Kiran to make. She fears for her child. She fears what the atmosphere around us will be. She feels scared to open the newspapers every day. That does indicate that there is this sense of growing disquiet, there is growing despondency apart from alarm. Aamir Khan Actor
To all of you, I solemnly promise that France will do everything to destroy the army of fanatics that committed these crimes (Paris terror attacks). Francois Hollande President, France
I’m opposed to the idea of Big Three (India, England and Australia). This concept cannot be there in an organization. No one can be ‘Big One,’ ‘Big Two’ or ‘Big Three.’ Shashank Manohar President, BCCI
8 I December 2015
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governance watch
Finance minister calls for creating ecosystem to boost exports Alarmed over decelerating global demand and declining exports, Union Finance Minister Arun Jaitley recently stressed the need for creating an ecosystem to kick shipments to the markets overseas. Jaitley urged exporters to produce quality products at competitive prices to meet the challenge of slowing demand in international markets. The Union Minister was speaking at the closing ceremony of 14-day long India International Trade Fair in New Delhi. Observing that trade helps in expanding economic activity, Jaitley said the “glaring challenge� is to step up shipments at a time when the world trade was getting compressed. He further said that declining prices of oil, gas, metals, food products and other commodities in the global market has adversely impacted the value realisation from exports.
Good response to govt gold bond scheme Garnering over Rs 240 crore, the first tranche of the Sovereign Gold Bond scheme has received an excellent response. The government had recently extended the issue date of the scheme’s first tranche by four days to November 30 to enable proper processing. A finance ministry statement said a large number of applications had been received by banks and post offices, which were designated sale points. Subscription for the bonds, announced by FM Arun Jaitley in the 2015-16 budget as a financial asset serving as an alternative to the precious metal, was open from November 5 to 20. Denominated in multiples of gram(s) of gold with minimum investment of two grams and maximum of 500 grams per person per fiscal, the bonds were to be sold only to resident Indian entities including individuals, Hindu undivided families, trusts, universities, and charitable institutions. For joint holders, the limit will be applied on the first holder.
Bihar CM announces free power connection to all After announcing a blanket ban on liquor from April next year, Chief Minister Nitish Kumar has directed officials to provide free electricity connection to everyone in Bihar by November 2017. Providing free electricity connection to all the households was one of the seven promises Nitish Kumar had made ahead of the assembly elections. The government is expected to incur an expenditure of Rs.1,500-1,800 crore on this project. Free electricity connection was earlier promised only for Below Poverty Line families but now it will also cover 50-60 lakh families coming in the Above Poverty Line category. A total of 2,719 of the 39,073 villages remain to be electrified in Bihar. In November 2005, average availability of power was six to eight hours in urban areas and two to three hours in rural areas. www.governancetoday.co.in
December 2015 I 9
India successfully test-fires nuclear-capable Agni-I missile India successfully test-fired indigenously built nuclear-capable Agni-I missile, capable of hitting a target at a distance of 700 kms, from a test range off the Odisha coast as part of Strategic Forces Command (SFC) training exercise. The surface-to-surface, single-stage missile, powered by solid propellants, was test-fired from a mobile launcher at 1002 hours from launch pad-4 of the Integrated Test Range (ITR) at Abdul Kalam Island (Wheeler Island). Agni-I missile is equipped with sophisticated navigation system which ensures it reaches the target with a high degree of accuracy and precision. The missile, which has already been inducted into armed forces, has proved its excellent performance in terms of range, accuracy and lethality. Agni-I was developed by Advanced Systems Laboratory.
HSBC to shut down India private banking business Marking the departure of another foreign bank from the cut-throat wealth management business in India, HSBC Holdings Plc is shutting its private banking unit in Asia’s third-largest economy. “After a strategic review of the global private banking operations in India, we have decided to close the business,” an India spokesman said. Many foreign wealth managers had scrambled to open up shop in India a few years ago and aggressively ramped up operations to take advantage of robust economic growth, only to find themselves struggling. Even though India’s economy has been minting millionaires at a strong pace, it has failed to translate into profits for the foreign wealth managers that have set up teams of well-paid bankers to help manage those riches. Banks including Royal Bank of Scotland and Morgan Stanley have sold their onshore India private banking units in the recent past, as part of their global business restructuring.
Portal to support innovation on the anvil Telecom Minister Ravi Shankar Prasad recently said a dedicated portal would be set up by the government to push innovation in the country. This portal would be established under Department of Electronics and IT (Deity) through which innovators can seek support from the government for their ideas, he said. The minister was present at an Intel event in New Delhi when he informed, “Under Department of IT, a separate portal shall be created which is dedicated to the innovators of India.” He added, “My department will follow it. We will reach them in the event they are worthy of that. They will be given all the support.” Prasad also felicitated 10 finalists of the ‘Intel and DST Innovate for Digital India Challenge’ who have developed innovative solutions for various fields. 10 I December 2015
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Jharkhand introduces M-governance With an aim to realize the Digital India dream, Jharkhand Chief Minister Raghubar Das introduced ‘Mobile Governance’ on the 16th Foundation Day of the state on November 15. The state government has launched 14 mobile applications and three web portals to deliver the benefits of information technology to the people of the state in order to bridge the gap between the government and public. To facilitate quick clearance for industries, the state government introduced Advantage Jharkhand Portal, the country’s first single window portal. The mobile applications were developed by Jharkhand Space Applications Centre (JSAC). These are designed to bring services from government, civic bodies and police force to the Android smartphones of the beneficiaries. All the mobile applications can be downloaded free of cost from apps.jharkhand.gov.in portal.
Medical equipment manufacturing hub in Andhra soon The Andhra Pradesh government is mulling to set up a medical equipment manufacturing hub near Visakhapatnam in the state. Chief Minister N. Chandrababu Naidu made the statement during his meeting with Medical Equipment Manufacturers’ Forum and Union Health Ministry officials in New Delhi recently. He said the state has the advantage of a long coastline and deep water ports, establishing a manufacturing hub near Vizag will be advantageous as the proximity of ports will make it easier to transport equipment. In order to strengthen the sector, the Chief Minister said the government plans to introduce a policy on medical equipment manufacturing. He also invited a delegation along with Government of India representatives to visit Andhra Pradesh and zero in on suitable locations. The meeting was also attended by state’s Minister for Health and Family Welfare Dr Kamineni Srinivas and other officials from the government also attended the event.
NTPC to benefit from UDAY initiative Ratings firm Moody’s Investor Service recently revealed in a report that the state-run NTPC (National Thermal Power Corporation) is set to benefit from the debt restructuring program for state-owned power distribution companies. Power Minister Piyush Goyal had launched the UDAY (Ujjwal Discom Assurance Yojna) initiative on November 6. UDAY is the financial turnaround and package for electricity distribution companies which involves state government’s taking over part of the debt of the discoms and prodding the latter to improve their efficiency. Abhishek Tyagi, a Moody’s V-P stated, “The improving coal environment and proposed debt reduction program should boost the ability of offtakers to buy electricity, which will in turn increase NTPC’s utilization rates and incentive income.” www.governancetoday.co.in
December 2015 I 11
India, UK sign deals worth 9 billion pounds India and the UK recently announced deals worth 9 billion pounds while signing a civil nuclear pact during PM Narendra Modi’s Britain visit. Both the countries have also decided to collaborate in the field of defence and cyber security in addition to launching a railway rupee bond. British Prime Minister David Cameron described the relations between the two sides as a “new dynamic modern partnership” and reiterated his country’s support for India’s permanent membership of the UN Security Council. “We want to become the number one partners to finance the immense economic vision of PM (Narendra) Modi and make London the centre for off-shore rupee trading with the launch of 1-billion worth of bonds including the first governmentbacked rupee denominated bond,” Cameron added. Prime Minister Modi highlighted plans for India to use London as a financial base for fundraising.
DoT issues guidelines to liberalise 2G spectrum The Department of Telecommunications (DoT) has issued guidelines to liberalise the 2G spectrum which would allow operators to offer latest mobile services, including 4G, using the same radiowaves. As per the guidelines, “Existing CMTS/UAS/UL with access service authorisation licensees may liberalise their entire administratively allotted spectrum holding in 800 Mhz and 1800 Mhz band in a service area for the balance validity period of right to use spectrum.” The development is likely to benefit telecom operators like Reliance, Aircel, Tata Teleservices, Airtel, Vodafone and Idea Cellular. They hold spectrum that was allocated to them administratively along with their first licence at a price of Rs 1,658 crore. It may also help companies take full benefit of spectrum sharing and trading guidelines as well as expedite the consolidation process in the industry. The spectrum will be liberalised for the period of their right to use left as per licence terms held by the telecom operator.
BCCI kicks off ‘operation clean up’ As part of its promised clean-up operation, the BCCI recently unveiled a slew of reforms, bringing an end to the controversial era of N Srinivasan. The new board president, Shashank Manohar persuaded the members to address the issues of conflict of interest and unanimously accept the appointment of a retired judge as ombudsman. The board also decided to trim some of its sub-committees, drop Indian team director Ravi Shastri from the IPL Governing Council and axe Roger Binny from the selection panel. Besides, former skipper Sourav Ganguly was appointed chairman of the Technical Committee. The BCCI also removed expresident N Srinivasan as its representative in the world body and replaced him with Manohar who will be the new ICC chief. 12 I December 2015
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AAP government clears 3 major Education Bills Three bills, aimed at reining in private schools, doing away with screening process in nursery admissions and scrapping of no detention policy till class VIII besides bringing in overall systemic reforms in education sector were passed by Delhi Assembly. CM Arvind Kejriwal said the proposed legislations will significantly help slash fees in private schools and if laid down norms are not followed, then violators will be slapped with hefty financial penalty and jail term. The Delhi School Education (Amendment) Bill (DSEAA) and the Delhi School (Verification of Accounts and Refund of Excess Fee) Bill stipulate hefty fine and imprisonment for violators of various provisions. The AAP had issued a whip to all its MLAs to vote in favour of these bills. As per the DSEAA, offenders can be levied penalty of different grades for taking interviews at the entry levels including nursery admission and charging capitation fees.
Coal India production jumps 8.8% to 321-mt in April-Nov Coal India’s production jumped 8.8 per cent to 321.38 mt during April-November period of the current fiscal, while off-take soared by 9.8 per cent. Coal India produced 295.40 million tonnes during the same period last year, a company official said. The impetus by the country’s largest coal producer on off-take also yielded result as the volume growth during the period was at 30.44 million tonnes. Coal off-take was 341.13 mt during the said period as compared to 310.70 mt in the same period of 2014-15, a growth of 9.8 per cent. Production during the month of November was 47.47 mt, up 6.79 per cent over the corresponding month of 2014-15. While, offtake jumped to 45.33 million tonne, a growth of 9 per cent over November, last year. “After steadying the growth in the twin performance parameters of production and off-take, our aim is to supply quality coal to our consumers.
Apple Macbook Air revamp will see 15 inch displays, better battery life According to a report from the Economic Daily, Apple is preparing a completely redesigned MacBook Air for its launch next year in June. The launch the expected to take place in at Apple’s annual WWDC event and news is that it’s finally getting a major face lift, which it truly deserves. The Apple MacBook Air lineup has not seen a major redesign since its launch back in 2010 but currently stands tall, even with its old design as it is still a great ultraportable (light weight) offering. So yes, the much loved ultrabook that literally re-invented the product category desperately needs an upgrade. Many manufacturers who have taken inspiration from Apple have moved on in terms of hardware with better Full HD displays and at times offering a slimmer construction with better battery life. www.governancetoday.co.in
December 2015 I 13
global watch
G-20 summit dominated by talks on global economic recovery The 10th G-20 summit was held in Antalya, Turkey and saw the participation of 13,000 delegates from 26 countries and seven international organizations. The leaders in attendance deliberated upon the ways to achieve inclusive growth of the global economy, which is still reeling under the stress of the 2008 financial crisis. The summit dwelled upon the risk and uncertainties in the financial market and the growing geopolitical challenges. All the economies reached a consensus on the need to coordinate macro-economic policies, promote trade and investment, encourage investments in infrastructure and generate more employment opportunities. They also discussed the need to plug tax loopholes that are often taken advantage of by the MNC companies as part of their fight against corruption. The summit ended with a pledge to work together for a successful Nairobi Ministerial Meeting on world trade.
China to establish its first overseas outpost in Djibouti China will establish its first overseas outpost in the East African nation of Djibouti. It has also unveiled plans of reorganizing its military to project more power abroad. The Chinese foreign Ministry has stated that the outpost would be used to resupply Chinese Naval ships participating in the United Nations anti-piracy missions and as refrained from terming it as a military base in spite of it having an access to some important strategic areas. China has invested heavily in Djibouti’s infrastructure, including in the upgradation of the port. From Djibouti, China can get easy entry to the Arabian Peninsula and will be able to protect its oil imports from the Middle East that pass through the Indian Ocean. The United States also maintains its military base in Djibouti for staging its counter terrorism operations in Africa and Middle East.
UN AIDS report records significant progress in fighting the disease In a report published by UNAIDS prior to the World Aids Day that falls on December 1 has shown a substantial decrease in the number of deaths caused by the deadly disease the world over. The total number of people reported to have died from AIDS in 2014 is 1.2 million, which is significantly lower than the 1.3 million deaths reported in the previous year and the peak of 2 million in 2005. The actual number of new infections also reduced to 2 million in 2014 as against the 2.1 million in 2013 and the peak of 3.1 million in 2000. The success of this is credited to the widespread deployment of anti retrovirals and the timely raising of funds in poor and middle income countries to treat those affected. The overall aim of the UNAIDS is to suppress the viral load of three quarters of those infected. 14 I December 2015
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China joins world’s elite currency club China notched an economic milestone with the International Monetary Fund adding the yuan to its elite basket of reserve currencies, a move designed to spur greater liberalization in the world’s No. 2 economy. The decision—effective next October—confers international status on China’s currency as the government starts to ease restrictions on its rigidly controlled exchangerate and financial system. It also marks the start of a potentially more perilous course for China. A more freely traded yuan and open markets, down the road, could add volatility to China’s trade picture and raise the risk of capital flight. The IMF’s decision will eventually put the yuan alongside the dollar, euro, pound and yen in the fund’s reserve-currency basket, with the IMF giving more weight to China’s currency than to either the yen or pound. But while the decision is a boost for China’s national self-esteem.
Global diet is getting sweeter: study
The global diet is getting sweeter, particularly when it comes to beverages, a trend that could negatively impact global health, researchers have warned. Previous research has shown that consuming foods and beverages with added caloric sweeteners is linked to an increased risk of weight gain, heart disease, diabetes and stroke. Currently, 68 per cent of packaged foods and beverages in US contain caloric sweeteners, 74 % include both caloric and low-calorie sweeteners, and just 5 per cent are made with low-calorie sweeteners only. The added sugar comes from hundreds of different versions of sugar, all of which have the same equal health effect, according to Barry M Popkin, from the University of North Carolina in US. He expects that in the absence of intervention, the rest of the world will move towards a similar pervasiveness of added sugars in the entire packaged food and beverage supply.
Fish too may have emotions, consciousness: scientists Fish may show ‘emotional fever’, a slight increase in body temperature in situations of stress linked to the emotions and consciousness, a new study suggests. Researchers from the University of Barcelona, and universities of Stirling and Bristol, have for the first time observed an increase in body temperature of between two and four degrees in zebrafish, when these are subjected to stressful situations. This phenomenon, known as emotional fever, is related to what animals feel in the face of an external stimulus. Until now emotional fever had been observed in mammals, birds and certain reptiles. Researchers arrived at the conclusion after they divided 72 zebrafish into two groups of 36 and placed them in a large tank with different interconnected compartments that had varying temperatures. www.governancetoday.co.in
December 2015 I 15
cover story
Near the point of no return
As the world congregates at Paris to talk climate change, there is a sense of dĂŠjĂ vu among negotiators, governments, environmentalists, scientists, protesters and media (At the time of going for print, the actual negotations were yet to start). Perhaps never in history has a non political talk attracted so much attention and expectation. There is a sense of urgency, as the feeling sinks in about the fact that we have reached a stage where doing nothing or taking half steps has an unimaginably horrendous implication for coming generations. There is also a grudging acceptance that the issue of climate change and the negotiations related to the same has been woefully lackadaisical. As policymakers discuss issues related to emission limits and financial assistance to developing world, and scientists figure out the implications of agreements in terms of actual impact on the ground, there is also a small but growing community that is thinking in terms of how we need to prepare ourselves to face the impact of what has already gone wrong. India too heads for talks with lot of hope, as it tries to wriggle out a respectable deal which allows it to contribute to the global cause of environmental preservation without compromising on its fight to pull tens of millions out of poverty. 16 I December 2015
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Anand Mishra In March this year, North India was witness to some of the heaviest and unusual rains. While it made some happy that the onslaught of summers was pushed back a tad, the real impact of the rains was seen a couple of months later when the prices of onions and tomatoes shop up. The impact is still visible on the prices of pulses which have shop up over 80 per cent in the third quarter of this year. The world also witnessed one of the strongest El-Nino this year, resulting in excess fluctuation in temperature in California and a failed monsoon in India, which has impacted the majority of Indian states. The broad point that we are trying to put across is that the unusual weather patterns are playing havoc with the lives, livelihoods and food prices of the people across the world and all of this can be blamed for the climate change that we have all
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heard of but rarely bothered to do anything about. As the world huddles again in Paris to discuss how to best manage our shared home, i.e. earth, it is necessary that stakeholders understand and do the needful to prevent the cataclysm. Recently, two disturbing reports came out, which unfortunately failed to create enough buzz. In the first, the World Meteorological Organization (WMO) revealed that the average global temperatures have recorded a rise of one degree Celsius for the first time this year. This was based on recording of temperature data from around the world during January to September 2015 period, which was 1.02 degree Celsius higher than the long-term average between 1850 and 1899. According to climate researchers, an increase in global average temperatures of 2 degree Celsius above pre-industrial levels would be a point of no return and would result in extreme weather
and climate condition, including the melting of polar ice and sealevel rise. The second report came from the United Nations, which released a report based on the aggregate impact of the climate action plans of various countries. The report, which takes into account the promises made by 146 countries that account for 86 per cent of the total global emissions lamented that the global promises and plans are inadequate and that the plans could still lead average global temperatures to rise by around 2.7 degree Celsius by the end of this century with disastrous consequences. But we hardly need such reports to realize the dangerous impact of pursuing growth through blind and irrational policies. As anyone living in a large city in the country would say how chocking the city becomes every winter and how children cough incessantly. Eyesores and bronchial diseases are becoming more frequent
December December2015 2015 II 17 17
Source: NASA
and the air is generally getting increasingly poisoned with each passing year. India already has the dubious distinction of having the most polluted city of the world, which is Delhi. While it is nobody’s argument to stall progress and growth, the
myopic view of growth that is limited only to the GDP numbers is leading to a disturbing mix of automobile, fuel and energy policies that have long term consequences for generations to come. But India is one of the many countries that are finding themselves in a strange
Climate change impact on Asia According to an assessment of the Intergovernmental Panel on Climate Change in 2007, higher temperature because of global warming can have the following impact on Asian countries:
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Decreased freshwater availability by 2050 in Central, South, East and South-East Asia, particularly in large river basins Higher risk for coastal areas, especially heavily populated megadelta regions in South, East and South-East Asia, due to increased flooding from the sea and, in some megadeltas, flooding from the rivers Increased pressures on natural resources and the environment associated with rapid urbanization, industrialization and economic development Increased risk of endemic morbidity and mortality due to diarrhoeal disease primarily associated with floods and droughts in East, South and South-East Asia due to projected changes in the hydrological cycle
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predicament wherein they have hundreds of millions of people to be pulled out of poverty through rapid growth and yet these are the same people which are worst impacted by the environmentally disastrous policies to end poverty. Needless to say, the negotiators in Paris have an extremely tough task of bringing such diverse set of priorities together, which has pitted poor and developing countries against rich ones. But we all have only one planet to share and we all have to pay the price for what happens to it, regardless of whether we are in New Delhi or New York or Nairobi. Thankfully, the urgency of the matter has tempered countries’ belligerence that dogged earlier round of climate change negotiations. Even though sticking points remain, the necessity of finding a common ground is making countries bringing more options on the table and adjust more.
Blame it all to atmospheric CO2
A recently released Greenhouse Gas Bulletin of the WMO stated that between 1990 and 2014, the radiative forcing – the warming effect on our climate – rose by a whopping 36 per cent, thanks to the higher emission of long-lived greenhouse gases such as carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) from industrial, www.governancetoday.co.in
Greenhouse Gases
Carbon dioxide (CO2) Released through natural processes such as respiration and volcano eruptions and through human activities such as deforestation, land use changes, and burning fossil fuels, CO2 is a minor but very important component of the atmosphere. Human activity has increased atmospheric CO2 concentration by one third since the Industrial Revolution. It is the culprit in the rise of global atmospheric temperature and climate change.
Methane (CH4)
Nitrous oxide (N2O)
Methane is produced both through natural sources and human activities, including the decomposition of wastes in landfills, rice cultivation, as well as from manure associated with domestic livestock. While it is a more active greenhouse gas than carbon dioxide, but is much less abundant in the atmosphere.
Nitrous Oxide is a powerful greenhouse gas produced by soil cultivation practices, especially the use of commercial and organic fertilizers, fossil fuel combustion, nitric acid production, and biomass burning.
agricultural and domestic activities. CO2 is the biggest culprit, the report said, accounting for more than 80 per cent of the total increase in radiative forcing. It also underscored the interaction and amplification effect between rising levels of CO2 and water vapor, a major greenhouse gas itself. In another disturbing development, the average atmospheric concentration of CO2 has crossed the 400 ppm level in the Northern hemisphere this spring; last year it had touched this mark only in passing. According to various research, a CO2 amount of order 450 ppm or larger, if long maintained, would push Earth toward an ice-free state. Also, in 2014, global average levels of CO2 were 143 per cent of preindustrial levels. It is this massive rise in greenhouse gases (GHGs) that is at the core of global climate negotiations, both at bilateral levels www.governancetoday.co.in
like the one between the US and China, and at multilateral levels like UNFCC negotiations whose next round is being held in Paris. Scientists estimate that about 2,900 gigatonnes (GT) of CO2 can be emitted into the atmosphere before the 2 degree Celsius threshold is breached. Industrialized nations have already about 2,000 GT, which means that the world has used, but about two thirds of its 2 degree Celsius “budget� of fossil fuels. The challenge for negotiators is to minimize the timeline within which the world peaks out its CO2 emissions, because longer this timeline, harder it would be to limit the warming and more stringent emission cuts would be required later on to keep the global temperature rise below the limit. So, it essentially boils down to cutting CO2 emissions at a global level, which is what the
Chlorofluorocarbons (CFCs) Chlorofluorocarbons (CFCs) are basically synthetic compounds exclusively of industrial origin and used in applications. CFCs contribute to the destruction of the ozone layer. Their production and release into the atmosphere is now largely regulated by international agreements.
climate negotiations have been mostly all about. But what are the major sources of CO2 emissions? While decomposition and ocean contribute some natural sources, the overwhelming bulk of the CO2 emission is contributed by human activities; the burning of fossil fuels, deforestation and industrial activity including cement production. Breaking it further, around 87 percent of all humanproduced carbon dioxide emissions come from the burning of fossil fuels like coal, natural gas and oil. Clearing of forests and other land use changes, and industries, major being cement, contribute 9 per cent and 4 per cent of the CO2 emission respectively. As per 2012 statistics of the International Energy Agency, the three types of fossil fuels that are used the most are coal, natural gas and oil. Of these, coal is responsible for 43 per cent of CO2 emissions December 2015 I 19
Total Global Emissions by Source Others
CO2 Emissions (Gtco2/yr)
Gas
Oil
Coal
Land-use Change 1880
1900
1920
1940
1960
1980
2000
Others: Emissions from cement production and gas aring Source: CDIAC, Global Carbon Budget 2014
Source: Global Carbon Project
from fuel combustion followed by oil and natural gas, which account for 36 per cent and 20 per cent of the CO2 emissions from fuel. The report also highlighted that electricity/heat, transportation and industry accounted for nearly twothirds of global CO2 emissions in 2010. This shows a pattern of who the major culprits are.
From Kyoto to Paris, via Copenhagen
The genesis of the climate change negotiation can be traced back to 1992 when countries created the United Nations Framework Convention on Climate Change (UNFCC) in Rio. The UNFCC sets an overall framework for intergovernmental efforts to tackle the climate change challenge. With a near universal membership of 196 countries, it has been the platform and a reference point for global climate change deliberation. But its ride has been anything but smooth so far. The first meeting put in place a strange system which bound governments to take actions to avoid climate change without specifying the activities or targets. The next major step in a global regime to tackle climate change came in 1997 in the form 20 I December 2015
of the Kyoto Protocol, which was signed by 36 countries, mostly developed ones. That pact called for global cuts in emissions up to about 5 per cent compared with 1990 levels, by 2012. Developed countries were individually allotted a target on emissions reductions. Developing countries were given no targets and allowed to increase their emissions at will. However, the US, the biggest polluter never ratified the Protocol, essentially killing the deal. Later discussions showed considerable differences among developed countries themselves and between developed countries and developing countries. In 2007, the Bali conference saw major drama as the US first rejected the developing countries’ demand for financial and technical help but later budged. There was also disagreement between the US and EU over the latter’s suggestion to include a specific demand for industrialized nations to cut emissions to 25-40 per cent below 1990 levels, by 2020. Second point which was objected to by the US was no binding commitment on emission cuts being required from developing countries, including China and India, the two leading
emerging economy polluters. The compromise resulted in US not insisting on a commitment from the developing nations; also no specific commitment was given to the EU’s suggested 25-40 per cent cut. Much ground was covered in Copenhagen conference in 2009 when developed countries and major developing countries agreed to limit their greenhouse gas emissions. But the deal was still elusive as leaders of the largest stakeholders could not commit on the scale and timeframe of emission cuts. The agreement, which was reached with the last minute interaction of the US, China, India, South Africa, Brazil and the EU, decided to limit global temperature increase to 2 degrees Celsius, put in place a process for countries to enter their specific mitigation pledges, and define broad terms for the reporting and verification of countries’ actions. It was also agreed that the developed countries will provide $30bn a year for poor countries to adapt to climate change which was to be increased to $100bn a year by 2020. What it also brought to the fore was bickering over the Kyoto protocol’s legal distinction between developed and developing countries. Next year, i.e. in 2010, Cancún summit formally put national pledges made during Copenhagen, into UN documentation. So what are the issues on the table at Paris Conference? The “Pre-COP” ministerial preparatory meeting which was held in Paris between Nov 8-10, held discussions under four broad heads, namely Equity and differentiation, Ambition, Post-2020 finance and Pre-2020 action. Of these, equity and differentiation, essentially the effort to have an agreed and legally binding common but differentiated regime and financial assistance are going to be the most complex areas to be thrashed out at Paris. On emission cuts front, a substantial part of the global commitment is now known with countries accounting for more than two third of global emissions, www.governancetoday.co.in
Reducing CO2 emissions Conservation of energy
Planning cities to have people commute less to workplaces to save fuel Setting in place efficient public transport Encouraging people to save electricity by use of energy saving appliances
Increase energy efficiency
Increase efficiency of power plants Reducing electricity losses in transmission and distribution
Promotion of smart power grids Increasing fuel efficiency of automobiles Building energy efficient buildings with greater natural insulations
including India, submitting Intended Nationally Determined Contributions or INDCs. The EU will cut its emissions by 40 per cent, compared with 1990 levels, by 2030. The US will cut its emissions by 26 - 28 per cent, compared with 2005 levels, by 2025. China will agree that its emissions will peak by 2030. But there is a near unanimity that the announced emission cuts are not enough to limit global temperature rise within 2 degree Celsius. Whether countries would be willing to ratchet up their commitments will be something on everybody’s watch. Second major issue on the table is of financial and technical assistance that rich countries would provide to poorer countries to help them take the environmentally sensitive path to progress. While the developed world has agreed for the financial assistance, till 2020, poor countries want the assistance to continue after 2020. In which form and till what time the provision of financial and technical www.governancetoday.co.in
Switching to greener fuels
Promotion of greener fuels and technology for transportation like CNG, LPG, Hybrid, solar powered and battery powered
Greater focus on renewables based power generation using solar, wind, geothermal, hydro and nuclear
assistance is provided is another crucial issue to be thrashed out at Paris. Also the institutional arrangement could become a bone of contention. While poor countries have been pressing for entire funding from governments of developed counties, the latter wants that the burden to be shared by international development agencies such as the World Bank and private sector.
Indian stakes
As it has turned out over the last decade or so, unseasonal rain, and erratic weather have wreaked havoc on crops and in turn on Indian farmers and the economy. Researches have shown that because of complex changes in local and world weather patterns, extreme rainfall events in central India, the core of the monsoon system, have increased and moderate rainfall events have decreased. The need for a healthy planet can hardly be overemphasized for India. On the issue of climate change,
Creating natural sinks
Increase forest cover and increase the quality of forest to absorb higher CO2 Promote CO2 capture and sequestration in new power plants to reduce CO2 emissions
India finds itself at a crossroads. On the one hand, it is still one of the largest CO2 emitter and on the other, it is home to the largest number of poor people in the world. The government has to pull hundrens of millions out of poverty, relocate many millions from farm to factories and simultaneously, has to address the issue of climate change and environmental degradation, already become a prominent health hazard. The country has 13 of the top 20 global polluted cities and has cities such as Mumbai and Kolkata which would be severely impacted by rising sea level. In short, it has a delicate balancing to do in terms of environmental concern and development. From a policy perspective too, India is at a typical place. It is the world’s third-largest contributor of greenhouse gas emissions and yet, its per-capita emissions, at 1.9 metric tons are a third of the global average, a quarter of China’s and one tenth of the USA’s per capita emissions. India’s per December 2015 I 21
Source: Global Carbon Project
capita electricity consumption is also less than half of China and less than one thirteenth of the US. About 300 million Indians still go without electricity. Needless to say, India needs to produce much more power and in this pursuit, coal is the default choice because of availability and the relative cost of per unit of power produced. By most estimates, India could be quadrupling its coal usage over the next couple of decades as it fires more power plants with domestic low quality fuel. It is not surprising, therefore, that India has refused to mark a timeline when it would peak emission of greenhouse gases. Instead, it has pledged to focus heavily on the renewables. In this situation, India may argue for a greater share in carbon space. It is worth noting that in an agreement the US and China have agreed to equalize emissions by 2030, when China will peak out CO2 emissions in 2030. In effect, China will end up with 12-13 tonnes of per capita CO2 emission by 2030, up about 50 per cent from the current roughly 8 tonnes. The US will come 22 I December 2015
down to the same level from 17 tonnes per capita CO2 emission. India may argue that countries, developed as well as developing, cut emissions based on their past emission levels in order to have an equitable distribution of carbon space. India may also be pushing for predictable financial assistance from developed world even though there is a constituency which is not in favor of asking for money and technology and feels that should be left only for least developed countries (LDCs). In totality therefore, a complex picture of climate change and discussions around it emerges. On one hand, there is a unanimity in the scientific community that the world has reached the stage where if no drastic action is taken immediately, the coming generations would face unimaginable climatic catastrophes and diseases. It is also well known that current commitments are not sufficient to limit the global temperature rise below 2 degree Celsius and that incremental efforts would be required from major GHG emitters. So, the climate change
negotiations are more political and economic in nature than scientific. While the developed world agrees that they need to undertake greater cuts compared to the developing world which is still trying to pull its vast populations out of poverty and provide them with bare necessities of life in form of food, electricity and transportation. Additionally, poor and technically less advanced countries need the monetary and technological support to bypass the polluting path to progress. The bickering is over who is to limit emissions more, and who is to cough up how much money and till what time. Still, today is perhaps the best time for taking up the challenge for curbing carbon based progress. Technology is fast making environmentally friendly and low carbon energy sources affordable and policymakers are increasingly getting ready to change economic models and energy policies to lower their environmental impact. For example, over the last half decade, solar photovoltaic cells have become cheaper by over 70 per cent and prices of wind turbines have come down by 30 per cent. Resultantly, renewables are gradually reaching parity with conventional fuel and when seen in light of the health effects and economic losses rendered by premature deaths because of conventional energy sources, most notably coal, it actually comes cheaper. The commitment of Indian government to increase non-fossil based power capacity to 40 per cent by 2030 is a noteworthy example in this regard. The world waits with great expectation the negotiations to conclude with legally binding commitments which are acceptable to all and are humane enough to bring the poorest of nations on board. We have a shared planet and nowhere else to go. We can hardly afford to lose it because of our hubris. anand@governancetoday.co.in
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cover story
Indian INDC: Does it balance environment and growth?
India has a tough task of balancing growth environmental sensitivity
Ritwajit Das In world of distorted carbon space governed by “common but differentiated responsibility,” India has shown fantastic acumen and leadership to deal with climate change crisis for UNFCCC Paris climate agreement. Indian Intended Nationally Determined Contribution (INDC) – promises a 33-35 per cent reduction in emissions intensity by 2030, compared to 2005 levels. This could see India outshine the EU and US in terms of total emissions in 2030. However, it would remain far below its peers on a per capita emission comparison. India’s INDC also pledges to nearly triple its renewable energy capacity by 2022 and to raise the share of zero-carbon electricity generating capacity to 40 per cent of the total by 2030. At $2.5tn over the next 15 years, India’s pledge has a significantly higher price tag than other INDCs. This progression would put India well forward of expected emissions from the US or the EU in 2030, but still emitting less than half as much as China. On the other hand, China has pledged to peak its emissions www.governancetoday.co.in
by around 2030, whereas India looks set to still be increasing emissions at that point.
Renewable Deployment – Goals and Agenda Setting
India might surpass its emissions intensity target as a result of unconnected goals for zero-carbon energy. India’s carbon intensity intention doesn’t fully seize the emissions it would avoid if it succeeds in meeting its renewable energy goals. India can exceed its carbon intensity target in the course of shifting to nonfossil energy. The INDC pledges to increase solar capacity 25fold to 100 gigawatts (GW) by 2022, to more than double wind capacity to 60GW by 2022 and to raise nuclear capacity from 6GW today to 63GW in 2032. In total, India is aiming to install 175GW of renewables by 2022. Prodyut Mukherjee of Emergent Ventures, a clean energy consultancy, thinks that India’s INDC target of 40 per cent renewable based electricity capacity entails a modest 10 per cent upsurge from current nonfossil fuel capacity. However, he feels domestic 2022 renewable
energy target of 175GW is dreamy and ambitious. On the erstwhile context, India’s INDC notes that coal “will continue to lead power generation in future”. In fact, it has plans to multiply domestic coal mining, implying rapid growth in CO2 emissions. A further element of India’s INDC is the pledge to increase the forest area, creating a carbon sink equivalent to a cumulative 2.5-3Gt CO2 equivalent by 2030. With increasing population that burdens already scarce land, how much it would be able to achieve this objective is anybody’s guess.
Indian INDC and its Per Capita Picture
Though India’s pledge could see total greenhouse gas output nearly double by 2030, emissions would remain comparatively low in per capita terms (yellow line, below). Indian INDC would be responsible for around 4.3tCO2e in 2030, up by around half from 2.9tCO2e today. Assuming it meets its INDC, the EU’s per capita emissions would have fallen from 8.8tCO2e today to 6.2tCO2e by 2030. The US and December 2015 I 23
Estimated ghgS emissions under india’s indc
Source: WRI, World Bank and Carbon Brief Past (solid line) and estimated future (dashed lines) greenhouse gas emissions in India, depending on the evolution of its emissions intensity. The grey line assumes constant emissions intensity at 2014 levels, and GDP growth according to OECD projections
China would nearly converge, with per capita emissions of 12.4 and 11.1tCO2e in 2030, respectively. By way of context, it’s worth noting that per capita emissions globally need to converge towards around 2GtCO2e in 2050, in order to retain a reasonable chance of avoiding dangerous climate change.
Financing INDC
India says its INDC will cost “at least” $2.5tn to implement, at 2014-15 prices (i.e. not taking into account India’s high rate of inflation). But it has not overtly set out how it has arrived at the $2.5tn figure it says it needs to implement its INDC. Neither has it said how much is likely to come from its domestic budget, and how much it expects to receive from international funds. Its scaledup ambition will require greater resources than are currently being committed by the government. The price tag is a notably higher than what other countries have put forward to date. Some 90 other developing countries so far have set out actions in their INDCs that they say would, in total, cost $1.01tn to implement. This total comes with warnings - not all countries have put an explicit price on their INDC. Nonetheless, the highest sum claimed by a country so far has been Ethiopia’s, at 24 I December 2015
$150bn. Most others have been in the tens of billions, or less. There are reasons why India’s wishedfor climate actions would be more costly to implement than other developing countries. As it points out in its pledge, India is home to 17.5 per cent of the world’s people. Its 1.2bn population is projected to grow to 1.5bn by 2030. It is currently responsible for around 6 per cent of global emissions. So while India’s INDC may be 16 times more expensive to implement than Ethiopia’s, it is worth bearing in mind that its population is also 13 times larger. On a per capita basis, therefore, their financial estimates are roughly in line. As the population both expands and rises out of poverty, electricity demand is also expected to more than triple by 2030, up to 2,499 TWh by 2030 by an estimates. Making sure this growth takes place in a lowercarbon fashion is inevitably going to be an expensive undertaking although it could also save India at least $23bn a year in reduced fuel imports, according to analysis by the New Climate Institute. The Indian INDC also quotes “preliminary estimates” that the country will essentially need around $206bn between 2015 and 2030 in order to prepare for the impacts of climate change. Additional financing will be required
for “strengthening resilience and disaster management.” Quoting a study by the National Institution for Transforming India, INDC says that putting India on the path of “moderate low carbon development” would cost $834bn up to 2030. Temporarily, the “loss and damage” that India is predicted to face due to climate change is likely to cost 1.8 per cent of India’s GDP every year up to 2050, according to its INDC. On the issue of financing, Indian INDC makes clear that it will be requesting money from international funds, including the Green Climate Fund. It says the exact quantum of required assistance would be finalized at a later stage, with a “detailed and full scale assessment.” It was decided in Copenhagen that developed countries would provide climate finance assistance to developing countries which will go up to $100bn a year by 2020. But the INDC also suggests that India is prepared to put the weight of its own economy behind its low-carbon transition. Most of India’s current climate finance comes from its own budget, says the INDC. The past two budgets have allocated funds to addressing climate change. In the meanwhile, the government is testing other means www.governancetoday.co.in
How INDCS WILL change per capita ghgS emissions
Source: Carbon Brief Per capita greenhouse gas emissions in 2014 and 2030, assuming India, China, the US and EU meet their INDCs and population growth follows UN projections. The US INDC runs to 2025; the dashed line assumes continued steady reductions in per capita emissions.
of raising money, according to the INDC. One example is a tax on coal, which is channeled into the National Clean Environment Fund; another is the National Adaptation Fund, which has been given an initial allocated of $55.6m.
Governance of sustainability
India’s INDC underwrites a clear indication about the view it will take at the UN climate talks in Paris this December, where a newfangled international agreement is expected to be signed. Its government has been less accommodating than other emerging economies, such as
China, whose relationship with the US has softened considerably over the past year. India has been more cagy and less assuaging towards developed country parties, thrashing out at the “greed and unsustainable lifestyle” of the west. In fastidious, the government has pushed the idea of “historical responsibility,” arguing that India’s relatively small emissions over the past centuries means it should face lesser obligations than those whose past development rested on the back of fossil fuel exploitation. These ideas remain in its INDC, which accuses developed countries of a “lackadaisical and
cost of implementing indcs
inadequate” response to climate change. However, there is much in the document to suggest that India’s position is becoming more positive in Paris, according to Mukherjee, who feels that the INDC is quite detailed and has a very constructive pitch. But, he says India must find a way balance environment sustainability, deep de-carbonization and economic development. He believes renewables deployment must propagated into rural India and it must address issues related to agriculture, irrigation, food and livelihood security. At the end of the day, Indian INDC shows significant intention and resolve, but leaves out certain key details like peaking out period and financing plans. But INDC is an evolving document and many details could come in light with time. What is important in the exercise is that the government realizes the criticality of various policies related to environment and climate management and acts firmly on them to achieve a healthier environment which is the birthright of coming generations. (Ritwajit is an international consultant working in the space of environment, sustainability and climate change.)
www.governancetoday.co.in
December 2015 I 25
cover story
The hidden culprit
Our cities are among the most polluted in the world, but studies have found that rural areas also contribute to pollution Praveen Raman We often blame industries, big cities and traffic for the high level of pollution and greenhouse gases emissions in our environment. But over the years, a new culprit has moved into the list, silently. That culprit is our villages, the home to 800 million Indians. Without doubt, our cities are among some of the world’s most polluted, but studies have found the rural areas are also suffering. Air pollution monitoring and regulation is primitive and India has no standards for some of the most toxic and commonly found air pollutants, especially in rural areas. While little national data is available on the state of outdoor air quality in rural areas, but the World Bank has expressed concern over pollution from stoves fueled by wood, dung and other materials.
Cooking, deforestation and fumes
A noble question that rises here is where does this pollution come from as the villages have no industries or traffic? The answer lies to the fact that the human activities contribute most. Let us take example of cooking. In rural areas, people still rely heavily on firewood which ultimately increases burden on forests. Shortages of wood and other biomass cooking fuels have forced communities to make significant changes to their local ecosystems, meaning cutting of trees resulting in poor quality of air. As populations increase and the demand for fuel rises, the surrounding environment is increasingly exploited resulting in marked reductions in tree and shrub cover. This burning of fuel wood affects air quality. Since many households cannot afford kerosene and liquefied petroleum gas (LPG), 26 I December 2015
a substantial portion of the rural poor continue to rely on fuel wood and charcoal. Also, over the last twenty years, roughly 300 million hectares of forest (an area six times the size of France) have been cleared to make way for farming, grazing, and large scale plantations of oil palm, rubber, bananas and other cash crops. Generally, the three major causes of deforestation are expansion of agricultural activities, logging and fuel wood collection.
Burning of agricultural waste
If you travel across the villages, especially in north India, you might see the common practice in the countryside of burning of rice straws and other agricultural wastes in preparation for the next planting season, a practice that contributes more to air pollution than vehicle emissions. According to an official estimates, uncontrolled open burning leads to emission of harmful dioxin and furan. Burning of agricultural wastes is the highest source of carcinogenic dioxin and furans, the known environmental contaminants that are emitted during the combustion process. The high level of intoxicants is due to the low temperature and uncontrolled combustion of agricultural residues. Based on estimates, 250 kg of rice straw and 100 kg of rice hull are burned per ton of rice produced. This comes to a total of 5,073,880 tons of rice straw and rice hull burned every year, contributing to the dioxin and furan releases to the tune of about 187.0457 g TEQ/a (toxin equivalents) compared to the estimated emissions by transport sector of about 0.12 g TEQ/a. The post harvest burning has not only posed threat to the environment but also to the health of the farmers. Various cases of
road accidents recorded have been due to the poor visibility caused by the smoke from the burning rice straws alongside the roads.
Excessive and unintelligent use of groundwater leading to loss of ground water
Rural areas also contribute to the pollution of ground water in many ways. According to some estimates, groundwater accounts for nearly 80 per cent of the rural domestic water needs. In India, groundwater is used intensively for irrigation and industrial purposes, a variety of land and water-based human activities are causing pollution of this precious resource. Its over-exploitation is causing aquifer contamination in certain instances, while in certain others its unscientific development with insufficient knowledge of groundwater flow dynamic and geo-hydrochemical processes has led to its mineralization. The incidence of fluoride above permissible levels of 1.5ppm occur in 14 Indian states, namely, Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal affecting a total of 69 districts, according to some estimates. Some other estimates find that 65 per cent of India’s villages are exposed to fluoride risk. High levels of arsenic above the permissible levels of 50 parts per billion (ppb) are found in the alluvial plains of Ganges covering six districts of West Bengal. Presence of heavy metals in groundwater is found in 40 districts from 13 states, viz., Andhra Pradesh, Assam, Bihar, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal, and five blocks of Delhi. www.governancetoday.co.in
The deadly fire Ab o u t 2 50 kg o f rice str aw and 100 kg of r ice h ul l are bur n e d pe r to n o f rice produced. T h is co me s to a to tal o f 5,073,880 tons of r ice s t r aw an d rice hull bur n e d ever y year, co n t r i bu ting to the diox in an d fur an releases t o t h e t une o f abo ut 187. 0457 g TEQ/a ( t ox in e quivale nts) co mpare d to the estimated e m i s s io n s by tr anspo r t se cto r of about 0.12 g T E Q / a.
Non-point pollution caused by fertilizers and pesticides used in agriculture, often dispersed over large areas, is another source of threat to fresh groundwater ecosystems. Intensive use of chemical fertilizers in farms and indiscriminate disposal of human and animal waste on land result in leaching of the residual nitrate causing high nitrate concentrations in groundwater. Nitrate concentration is above the permissible level of 45 ppm in 11 states, covering 95 districts and two blocks of Delhi. DDT, BHC, carbamate, Endosulfan, etc. are the most common pesticides used in India. But, the vulnerability of groundwater to pesticide and fertilizer pollution is governed by soil texture, pattern of fertilizer and www.governancetoday.co.in
pesticide use, their degradation products, and total organic matter in the soil. The first step towards evolving measures to prevent and cure groundwater quality deterioration is generating reliable and accurate information through water quality monitoring (WQM) to understand the actual source/cause, type and level of contamination. However, there are a few observation stations in the country that cover all the essential parameters for water quality and hence the data obtained are not decisive on the water quality status. Secondly, WQM involve expensive and sophisticated equipments that are difficult to operate and maintain and require substantial expertise in collecting, analyzing and managing
data. Since water technology is still not advanced in India, it is very likely that the available data is less reliable. The existing methodology for WQM is inadequate to identify the various sources of pollution. Integration of data on water quality with data on water supplies, which is very important from the point of view of assessing water availability for meeting various social, economic and environmental objectives, is hardly done. And finally, in the absence of any stringent norms on water quality testing, results can change across agencies depending on sampling procedure, time of testing, and testing instruments and procedure. praveen@governancetoday.co.in
December 2015 I 27
cover story
Push for clean energy
Notwithstanding growth trajectory, political will must to ensure successful transition
Renewables are the only technologies that offer the theoretical potential to meet all of long-term power requirements.
Ramesh Kumar Raja India, a country of over 1.2 billion, has enormous energy needs and it is becoming steadily challenging to meet this requirement through conventional means of power generation. More than 40 per cent of rural Indian houses do not have electricity. While India is developing domestic energy sources to fulfil the mounting demand, it is also worried about having to import oil, coal, and natural gas that could aggravate the trade deficit and can be detrimental to the environment and ecology. Coal imports have already hit a record high in the recent past and will possibly increase further over the next few 28 I December 2015
years as India expands its powergeneration capacity by 44 per cent. The country’s inability to generate clean, affordable power is a major constraint to attaining energy security. The present centralized model of power generation, transmission and distribution is getting more and more costly to maintain and, at the same time, is restricting the flexibility required to meet growing energy demands. Hence, the country requires to boost a decentralized business model in order to more readily take the benefit of richly available renewable energy sources such as solar, wind, hydropower, biomass, biogas, geothermal and hydrogen energy, and fuel cells. Although
India is blessed with plenty of these resources, it spends billions of rupees to import fossil fuels. It may be noted that India imports 80 per cent of its crude oil and 18 per cent of its natural gas requirements. In order to secure its energy future, the government of India immediately needs to design and implement innovative policies and mechanisms that promote increased use of renewable resources, as all of India’s future energy demand could well be met by utility-scale and rooftop PV, concentrated solar power, onshore and offshore wind, geothermal, and conventional hydropower. Interestingly, “investment in these technologies would also create millions of new jobs and www.governancetoday.co.in
an economic stimulus of at least US $1 trillion, and perhaps much more if all indirect (ripple) effects are included. Other major changes involve the use of electric vehicles and the development of enhanced smart grids. Making the transition to 100 per cent clean energy is both possible and affordable, but requires political will,” feels energy expert Darshan Goswami, an ex US Department of Energy (DOE) hand. According to Goswami, “Instead of an all-embracing energy strategy, India has a number of disparate policies. To date, India has developed a cluster of energy business models and policies that have obstructed adoption of renewable energy expansion plans. This present approach threatens India’s economic competitiveness, national security and the environment. Hence, India must essentially transform the manner in which it produces, distributes and consumes energy in order to reduce its dependence on foreign oil, as well as to create jobs, enhance global competitiveness and decrease carbon emissions.” Although the government of India has taken a number of measurable initiatives towards improving infrastructure and power reliability, more needs to be done, and of course, soon enough. The creation of the Jawaharlal Nehru National Solar Mission (JNNSM) in late 2009 was one step in the right direction, although the present JNNSM target of producing 10 percent of the country’s energy from solar, i.e. 20 GW by 2022, is highly suspect. JNNSM, therefore, needs to make some audacious moves, with the assistance of governments at the Centre and in states, in order to play a significant role in grasping India’s solar energy potential. One such step would be setting up of a country wide solar initiative to enable deployment of 100 million solar roofs and utilityscale generation installations within the next two decades. India could become a significant player and international leader in solar energy for years to come if the target is www.governancetoday.co.in
Smart Microgrid system
achieved as planned. Besides, developing off-grid powered micro-grids can change the way communities generate and use energy, and can reduce costs, increase reliability and improve environmental performance. Micro-grids can be used to take considerable electrical load off the existing power grid, reducing the need for building new or expanding existing transmission and distribution systems. Needless to say, renewables are the only technologies that offer India the theoretical potential to meet all of its long-term power requirements. “Even if a tenth of its potential was utilized, it could mark the end of India’s power problems. Using the country’s deserts and farm land, India could easily install around 1,000 GW of solar capacity, equivalent to around four times the current peak power demand,” Goswami believes. The energy expert is of the view that if these abundantly available resources were properly harnessed, all of India’s new energy production could be derived from renewable energy sources by 2030. In addition, all existing
generation could be converted to renewable energy by 2050 while maintaining a reliable power supply in the interim. Unfortunately, hurdles to implementing the renewable energy plan are seen to be mostly social and political, not technological or economic. Renewable energy indeed has the potential to power India as a“green nation.” It also gives India a golden opportunity to solve the problems of poverty, ensuring energy security and combating climate change. But it calls for an urgent action by the government. Jeremy Rifkin, an American economic and social theorist, has rightly said that “India is the Saudi Arabia of renewable energy sources and, if properly utilized, India can realize its place in the world as a great power,but political will is required for the eventual shift from fossil fuels to renewable energy.” The current dispensation at Delhi has clean energy on top of its agenda and seeks to cut India’s overwhelming reliance on fossil fuels. The targets are ambitious. An earlier target of installing 20,000 megawatts (MW) of solar December 2015 I 29
Refueling an electric car is not quite as easy as just plugging it in
energy capacity by 2022 has been raised fivefold to 100,000MW. The government also wants to put in place 60,000MW of wind power capacity by then. Policy action has been reinforced by corporate backing. The government has secured pledges from 213 companies to establish renewable energy capacity of 266 gigawatts (GW) over the next five years. The firms, a mix of public and private entities, comprise state-run thermal power producer NTPC, which has agreed to set up 10,000MW of renewable energy in the next five years. In the private sector, the largest commitment for generation is from US-based SunEdison Inc. for 15,200MW, while ReNew Power Ventures Pvt. Ltd has promised 11,500MW. The government’s focus on renewable energy forms is understandable considering India has an energy import bill of around $150 billion, expected to reach $300 billion by 2030, which it wants to reduce. Moreover, the government is expecting an investment of $200 billion in green energy projects. According to Bloomberg New Energy Finance, the clean energy investments in India jumped to $7.9 billion in 2014, helping the country maintain its position as the seventh largest clean energy investor in the world. It’s worth to be noted that the 30 I December 2015
timing of the government’s clean energy drive is fitting, coming as it does in the wake of both solar and wind energy nearing grid parity – a point in time at which they will cost the same as power produced from traditional sources and available on the nation’s transmission and distribution grid. In states like Tamil Nadu, for instance, wind power already compares favourably visà-vis imported coal-based thermal power. As regards funding these projects, financial institutions have made a commitment to finance renewable energy projects totalling 78GW, and the government plans to start five funds of $5 billion each to promote green energy sources. India is also working to build a consortium of some 50 countries that have abundant solar radiation. This grouping will pool research and technological advances in the field of solar energy in order to improve access to it to the poorest of the poor, and in the remotest of locations. The plan is aimed at lowering the cost of solar energy. However, the biggest challenge for the growth of renewable energy investment is the health of the public electricity distribution utilities. Even as the country ramps up renewable energy production and distribution capacity, it needs to ensure that state-owned electricity companies actually purchase that energy.
For instance, the state of Tamil Nadu has about 40 percent of the country’s installed capacity for wind power. It’s actually less expensive there than coal power. But stateowned distribution companies often don’t buy much of it for a number of reasons – including their fear that the rise and fall of winds, which they lack the ability to forecast well, will destabilize the grid. Since 2010, India has set mandatory minimums for how much renewable energy distribution companies and large power consumers must purchase. The Centre has set a minimum purchase goal of 15 percent by 2020, but it’s the state regulatory commissions that actually carry out the policy, and many of them have been decreasing their targets lately. Ironically, companies are not penalized for failing to meet them. The government has set out to raise clean energy funds by taxing coal, but it’s not clear whether those funds are being used to promote renewable energy initiatives. Ambitious targets can only be realized if funds are made available for research and development. Only then can the renewable energy industry move from being incentives-driven to market-driven. Last but not the least, the government is chalking out a plan to turn some 20,000 unemployed graduates into entrepreneurs to help it meet its solar power generation targets, a program it will implement in coordination with state administrations. The state governments will choose these graduates, preferably engineers, who will then be trained by the central government for around three to six months so that they have the entrepreneurial and technical skills to set up solar power plants with a capacity of 1MW each, to create 20,000MW of solar capacity combined. This is in addition to the government’s plan to train around 50,000 people in areas related to solar power. ramesh@governancetoday.co.in
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cover story
Lungful uneasy - deteriorating air quality of India Ritwajit Das There is something new about New Delhi’s air, it is dangerously toxic even to smell, forget about lungful intake. Each morning, all lanes of a motorway into the capital are chock-full with thousands of echoing lorries with insignias beseeching overtaking drivers to “Horn please.” Every night immeasurable convoys of lorries make way into the heart of Delhi, burping sulphurous diesel smoke. The lorries are the foremost reason why Delhi’s air is now more toxic than any other city’s on earth. Undoubtedly Beijing has a worse reputation, with its visible smog from PM10, particulates of 10 microns or smaller. Delhi’s indisposed distinction is that it has even higher levels of PM10, as well as of the smaller particulates, PM2.5, that are more likely to kill because they go deeper into the lungs. Levels of PM2.5 in Delhi are habitually 15 times above levels considered safe by the World Health Organization. New data suggest that, on this score, Delhi’s air has been 45 per cent more polluted than that of the Chinese capital for the past couple of years. Last year the WHO gauged 1,622 cities worldwide for PM2.5 and found India home to 13 of the 20 cities with the most polluted air. More cities in India than in China see enormously high levels of such pollution. Especially to blame are pathetically low standards for vehicle emissions and fuel. Nor, for different reasons, are rural people better off. Indoor pollution inhaled from dung-fuelled fires, and paraffin stoves and lights, may kill more than a million Indians a year. The human cost is seen in soaring asthma rates, including among children. PM2.5 contributes www.governancetoday.co.in
December 2015 I 31
AN ULTRA-FINE KILLER What is PM1
Why India should worry ?
Pollution particle that are 1 micron or less indiameter, about 2.5 tinier than PM 2.5b, which is 30 times smaller than width of human hair, also know as “ultrafine particulate matter”
PM1 is found to be 35% - 50% of PM 2.5 levels, which themselves are very high in Delhi.This means capital’s air is flooded with ultra fine killers.
PM1 is the most dangerous one out of all particular matter because itpenetrates deep into blood stream.
A Chinese study says, PM1 is the prime cause of cardiovascular diseases linked to pollution.
to cancer and it kills by triggering heart attacks and strokes. Air pollution is likely to cause vastly more deaths, as Indians grow older and more obese. Indoor and outdoor pollution combined is the biggest cause of death, claiming over 1.6 million lives a year.
The ultrafine killers in capital’s air
A government organization that, lately started examining the most perilous class of particulate pollutants — ultrafine particulate matter or PM1 — found its levels to be quite high even in the lowpollution pre-monsoon season in comparatively cleaner locations of the city such as central Delhi’s Lodhi Road. PM1 is the tiniest and deadliest class of pollution particles. Studies show it’s the primary cause of pollution-linked
incidence of cardiovascular disease in China. Much finer than PM2.5, PM1 particles can easily penetrate very deep into the lungs or enter the blood stream. Presently, no safe standards have been agreed for PM1. Yet, there are several reasons why experts are ringing the alarm bells on the pollutant’s levels in Delhi. According to monitoring agency SAFAR, PM1 levels on certain days had peaked to 70 micrograms per cubic metre, higher than even the national safe standard for PM2.5, which is 60mg/m3. PM1 is a fraction of PM2.5 emissions but SAFAR scientists say their levels should be extremely low or none because of their health implications. PM1 levels remain high even in wet weather because rain doesn’t wash away very fine particles. “If PM1 is half of PM2.5’s
Presently, no safe standards have been agreed for PM1. Yet, there are several reasons why experts are ringing the alarm bells on the pollutant’s levels in Delhi. As per SAFAR, PM1 levels on certain days had peaked to 70 micrograms per cubic metre 32 I December 2015
deliberations, we should really be apprehensive,” said Mr. Kaushik Raj Hazarika eminent researcher on environmental policies in India previously worked as a Technical Head with GIZ, United Nations Development Program and IORA Ecological Solutions. He further adds “There is no safe standard for PM1 simply because there is no level that can protect everyone from its health impacts. There are people who are extremely sensitive to even very low levels. The current thinking is that we reduce the fine particles as much as possible. It is a very expensive proposition though.” He said PM1 particles could enter the blood and circulate, affecting the inner walls of arteries and causing cardiovascular problems. “Since they get diffused with the blood, new research also suggests they can travel to the brain and are linked to strokes,” says Hazarika. A study by the School of Public Health at Fudan University in China, for instance, found that particles in the air measuring between 0.25 to 0.5 microns in diametre had a closer relationship to human health, especially an increased risk of cardiovascular diseases. Monitoring of PM 1 level can help the government address the major source of pollution. Unlike PM10 (coarse pollution particles) that can go up due to dust, PM1 is entirely because of combustion. There have been studies in the UK and Germany that found 90 per cent of diesel emissions to be PM1 particles. It’s not surprising to find high PM1 levels even in cleaner areas because these cannot be seen and they don’t collect together like the bigger particles. Such tiny particles cannot occur naturally in the environment. The PM 1 particles are so light that now for vehicles with Euro 5 fuel standard, the emission is being counted in number of pollution particles as against the weight of particles. Michael Greenstone of Chicago University has led research into pollution-affected lifespans in China that has implications for India. www.governancetoday.co.in
Air Pollution, number of cities by average annual concentration of pm 2.5*, 2013!
The lives of northern Chinese, he found, are 5.5 years shorter on average because of air pollution. In a recent article, he applies the same methods to assess the 660m Indians most exposed to toxic air. He concludes that they would each live over three years longer, on average, if their air met national standards. A former UN chief negotiator on climate change, Yvo de Boer, suggests that air pollution costs China the equivalent of a tenth or more of GDP and he warns India to avoid that fate. He urges India to “industrialize in a cleaner way”. And a study of agriculture in India from 1980 to 2010 found soaring levels of ozone and other air pollution, which has led to wheat yields a third lower than would otherwise have been expected.
Mapping similar fate in other countries and their response
Air quality in South Korea has become an increasing source of concern for the nation. According to the survey conducted by the Seoul Development Institute, 51.8 per cent of Seoul’s residents consider air pollution to be the most imminent environmental issue, and 68.3 per cent of them consider that www.governancetoday.co.in
the level of air pollution is serious (very serious 13.0 per cent, quite serious 55.3 per cent). The pollution is due to both sandstorms and small particles, which have
multiplied with the heavy industryled economic growth of the country and the fast increase in the number of auto vehicles on the road, which grew from 0.79 million in 1983 to
Fighting challenge head on South Korea’s air quality management program has four pillars:
1 2 3 4
The vision is to provide clean and safe air quality, enunciated in special act of 2003
To evaluate air quality improvement from stationary sources, mobile sources and other sources To develop a strategy for emission reduction through “air quality management district” and “total air pollution load management.” These are integrated into “air quality improvement target – to reduce the concentration PM 10 and NOx to the level of developed world Analysis of current air pollutant emission and future prospect” and “analysis of current air quality and future prospect”
December 2015 I 33
18.8 million in 2012. This pollution is in apparent contrast with the will of former president Lee Myungbak to make green growth the driving force of the South Korean economy. Despite many pragmatic measures, a number of experts were critical of the government’s public policy. They felt that the government’s action allowed a reduction of the concentration in PM10, but did not act upon the concentration in PM2.5, which is the most dangerous particles because it is carcinogenic.
What can India do?
India’s leaders are starting to act, pressed by anti-smog campaigns such as the one by the Times of India to “let Delhi breathe”. Prakash Javdekar, the environment minister, says that monitors have been installed on thousands of industrial chimneys to gather data
on emissions. Now officials have identified the country’s 17 most polluting industries. In theory, at least, every Indian city is now supposed continuously to measure air quality. But state governments are slow to enforce national orders, while the Central Pollution Control Board, India’s main environmental agency, does little. Javdekar promises “aggressive action” to improve fuel standards, which would cover those belching lorries coming into Delhi. In March the Supreme Court may anyway order standards to be tightened, by reducing sulphur, as well as instructing carmakers to cut vehicle emissions. Some good initiatives to improve air quality are under way. A research project near Patna in Bihar proposes retrofitting the chimneys of brick kilns in ways that reduce smoke. The scrapping of subsidies on petrol and diesel in
South Africa delineates strong legislation The South African legislation, passed in 2005, to improve and manage air quality, is one of the most comprehensive policy instrument ever devised in a developing world. Important elements include:
Decentralizing air quality management responsibilities Requiring significant emission sources to be identified, quantified, and addressed Setting ambient air quality targets as goals for driving emission reductions
Recognizing source-based (command-and-control) measures in addition to alternative measures, including market incentives and disincentives, voluntary program, and education and awareness Promoting cost-optimized mitigation and management measures
34 I December 2015
recent years has had the welcome effect of raising the costs of running especially noxious generators, which may account for nearly a third of all installed electricity capacity. Given that most people, even in the city, still commute by foot, bus or bicycle —and that only 5 per cent of households own cars—India still has time to set up systems for mass public transport before the car becomes king. Already 14 cities have or are building metros. As for farmers, Hazarika says they should be pressed to use modern harvesting machinery that renders it unnecessary to burn stubble in fields, a big cause of air pollution. One experiment could prove particularly welcome. Three industrialized states—Gujarat, Maharashtra and Tamil Nadu— are about to launch the world’s first market for trading permits in emissions of particulate matter. In the town of Surat, in Gujarat, 300 textile plants, which typically burn coal to produce steam, are likely to be the first to trade such permits. Monitoring equipment has already gathered emissions data from these and other plants. Factories could quickly cut emissions by a lot once they have incentives to do so. They could, for example, clean their equipment better or burn fuel more efficiently. The market can function once India’s central government gives the go ahead. That is likely to happen, however, only once the law allows financial rather than criminal penalties for owners whose plants breach legal standards. No one knows how long the change will take. Lots of bright ideas exist for tackling air pollution. Their widespread implementation, however, depends to a great degree on how much the public makes a fuss about inaction.
(Ritwajit is an international consultant working in the space of environment, sustainability and climate change.)
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cover story
Fuel policy: Time to correct mistakes Use of diesel is causing damage to environment; govt needs to bring in innovative and transparent legislation to arrest it
The pollution by trucks has been the most unattended part of the pollution fight
Lekshmi Parmeswaran The words of the French Prime Minister, Manuel Valls terming diesel cars a ‘mistake’ have fuelled a long overdue debate on sustainability. When close to two decades ago, Europe took the decision to incentivize the buying of diesel vehicles, the goal was to ensure a pollution free environment. Now, after being in operation for so long, it has probably turned out to be a catastrophe with respect to combating climate change. This puts the spotlight back on sustainable practices and how certain myopic goals often ensnare the larger picture. For long the use of diesel has been promoted citing its fuel efficiency and low carbon the www.governancetoday.co.in
emissions as the driving factors. European countries were among the first to endorse this principle in totality and started providing tax breaks to encourage the phasing out of all other fuels. That was also a time when carbon dioxide was at the core of all debates and the policy measures were concentrated on reducing its limits. The other pollutants and its effects were often ignored and were not included in any of the policy negotiations. India was no different and bandwagoned with the other countries to promote the use of diesel, especially in the public transport sector. Diesel was given at a highly subsidized rate for the state-run buses with the twin goals of protecting the environment from further degradation and keeping the
transportation costs low. It is this very policy, that has now backfired with the pollution levels in the country reaching toxic limits and the use of diesel getting diversified to a number of other sectors.
Why is diesel bad?
The journey of diesel from a cleaner fuel to the most polluting one in comparison with petrol and CNG has been one of failed policy initiatives. Recent studies have established that diesel has higher carbon content than petrol and they burn less cleanly which produces an excess of particulates. The resulting emissions include nitrogen dioxide, which is known to cause permanent damage to the lungs. The classification of these as Class I carcinogen by the World December 2015 I 35
In India, the use of diesel has spread to a number of non vehicular usage
Health Organization (WHO) adds further credence to the dangers posed by this fuel. The inhalation of diesel fumes is known to cause lung cancer and it also increases the risk of gall bladder cancer. It has now been put in the same category as the highly toxic mustard gas, arsenic and asbestos. According to WHO, air pollution causes more deaths worldwide than death caused by AIDS, diabetes and road injuries combined. The PM (Particulate Matter) 2.5 emitted by the diesel vehicles is known to be the most dangerous. Though there have been efforts made to reduce the sulphur content in the fuel, it still emits significant quantities of fine particles which are both organic and inorganic in nature. These are responsible for corroding the engines and pipes as well as for significantly reducing the efficiency of the after treatment systems which are meant to 36 I December 2015
reduce the tailpipe emissions.The damage that these particles do to the environment is in most cases permanent.
Automobile industry
It is here that the automobile industry assumes greater importance. The government’s plans to introduce new policies for the automotive sector that would have its focus on alternative sources of energy are a step in the right direction. However, if the implementation of the previous policies is anything to go by, this will in all probability just remain on paper. The New Auto Fuel Policy is a case in point. Formulated along the lines of the internationally accepted Euro 6 and 5 norms, it is definitely ambitious in its goals. But when juxtaposed with the fact that the implementation of the Bharat Stage (BS) IV norms which are the Indian equivalent of Euro
4 norms have not been successful in spite of it coming into effect on April 1, 2010, it raises some serious concern about the future of the country’s fuel policy. Started with a target of covering 50 cities by 2015, the government has so far been able to cover only 22 cities. Added to this is the fact that heavy vehicles like trucks are yet to be covered by the BS III norms. Such relaxed standards often show country’s’s lack of commitment in arresting the ill effects of climate change and also sends out a wrong message to the potential investors. It also needs to be noted that India’s fuel policy is a decade behind the policies of other developing countries like Brazil and Turkey. Even the policy of installing catalytic converters that convert the toxic pollutants in exhaust gases into substances that reduce the harm it causes to the environment has not met with much success. www.governancetoday.co.in
The reason for this can be found in the findings of a Frost and Sullivan Report. It blames the high and volatile price of the platinum group metals used in the catalytic converters as the major challenge before the manufacturers. Due to this, most often the quantities of these metals are reduced, which adversely affects the overall efficiency of the system.
The role of subsidies
The obvious question that needs to be asked here is why, despite having so many disadvantages diesel is the cheaper fuel in comparison with petrol. This fact assumes special significance when one takes a look at the global picture where in most of the European and North American countries diesel is sold at prices that are much higher. The answer to this lies in the very nature of Indian economy. In a country which is predominantly agrarian, diesel has a number of non-automotive uses. It is used to run tractors and it is used in irrigation pumps to lift underground water. In such a scenario, the government was forced to keep diesel prices artificially low by providing subsidies. The advantage of such a pricing was then used by the trucks and fleet in the transportation of goods and people. Also, when all the state governments progressively went for the dieselization of the transportation sector, the burden of keeping the pricing stable became bigger so as to not let it affect the general public. In all, the diesel subsidies cost the exchequer a staggering $10 billion or Rs 60,000 crore in the year before the government took the bold step to deregulate the diesel prices. But even that step at a time when the global oil prices were falling and the market forces did not have any substantial impact on the prevailing rates. What this step has done was to plug the loopholes in the dual pricing policy which gave rise to unmanageable levels of corruption in this sector. According to this policy, the bulk www.governancetoday.co.in
purchase of diesel was deregulated and in the retail outlets it was still sold at subsidized rates. Such a policy was without a doubt flawed from the very beginning. All sales moved to the retail outlets and considering that in India the consumption of diesel is more in the heavy vehicle sector and for running of the telecom towers, this resulted in huge monetary losses to the government. It was to correct this anomaly that the incumbent government finally took the decision to deregulate the prices and gave the private sector complete control to fix the rates.
What next?
There is no doubt that India is in want of a fuel policy that is more in line with the present times. The Volkswagen scandal where the company was found to be blatantly flouting the environmental policy norms should serve as a warning signal to the rest of the world to formulate realistic policies where there is a proper check and balance system in place. The need of the hour is to find alternative sources of energy to reduce the dependence on diesel. The New Auto Fuel Policy, by providing the provision of up to 85 per cent ethanol blend in petrol and diesel fired vehicles have laid down the roadmap for the future course. This allows sugarcane based by-products to be used in commercial vehicles in the first stage of implementation. The introduction of ethanol run buses for public transport by the Sweidsh manufacturer Scania should be seen as the proof that this policy can be implemented if political will prevails. These buses have already been introduced in India on a pilot basis in the city of Nagpur. Incidently, the constituency of Union Minister of Road and Surface Transport Nitin Gadkari. “We need to understand that implementing the use of biofuel should be a collaborative business. While tax incentives can be provided for its use, it should be combined with compulsory targets. And for such a policy
to become successful, a district centric approach will make more sense than a national level agency coordinating it for the entire nation”, said B. Rajagopalan, President, DSM India Private Ltd. in an event organized by the Confederation of Indian Industry (CII). Countries around the world have successfully implemented policies to reduce their carbon footprint. Beijing has completely banned diesel cars on its roads. Delhi has also placed a ban on diesel cars that are 10 years old, a decision which was upheld by both the Supreme Court and the National Green Tribunal. Now what is needed to oversee its execution in a systematic manner. India has a partnership in place with California in the form of The India-California Air Mitigation Pollution Program (ICAMP) where India is expected to emulate the best practices of California. The policies there have aided in reducing the soot concentrations emanated from diesel vehicles by 90 per cent. Sri Lanka is another country that India can learn from. The country, by taking recourse to some stringent fiscal measures like imposing high import duty on all cars and doubling the tax for diesel cars, has been successful in reducing the pollution. “We as a country should think about developing more technologies so that it would make it possible for us to invest in countries like Latin America and Africa. In terms of producing bio-fuel, the countries in these two regions have huge potential and India should be willing to tap into these opportunities”, said Shri Suresh Prabhu, Minister of Railways attending the same CII event. With mitigation of climate change becoming the most important concern for all the world governments, opportunities are aplenty for India to bring in more innovation and transparent policies to arrest the damage that the visibly skewed fuel policies has done to the environment. lekshmi@governancetoday.co.in
December 2015 I 37
interview
Tough action required to reduce harmful emissions
Dr Sunita Narain Padma Shri awardee and director general of Centre for Science and Environment, New Delhi Pollution, particularly the air-borne, is at the core of many health problems in India. It is also a major environmental issue the world is grappling with. The situation, across globe, has reached a point which calls for an urgent action before it’s too late. Ramesh Kumar Raja, Sr. Copy Editor, ‘Governance Today’ had a conversation with renowned environmentalist Dr Sunita Narain who shared her views on a wide range of issues related to environmental pollution. Narain, a Padma Shri awardee, is the director general of the Centre for Science and Environment, a premier think tank 38 I December 2015
on environment-development issues. She is also the director of the Society for Environmental Communications and publisher of the fortnightly magazine, Down To Earth. Edited excerpts:
The air of major cities in the country is hardly breathable today. How do you look at the situation?
CSE’s assessment of air quality trends indicates that close to half the cities that are monitored are reeling under severe particulate pollution while newer pollutants like nitrogen oxides, ozone and air toxics
are worsening the public health challenge. That means half of the urban population breathes air laced with particulate pollution that has exceeded the standards. Not just big cities, even smaller and more obscure cities are amongst the most polluted. There is a shocking increase in air pollution related deaths in India; it is the fifth leading cause of death in India, with 620,000 premature deaths in 2010. This is up from 100,000 in 2000 – a sixfold increase. This is as per the Global Burden of Diseases study. Not only the deaths, but massive loss in healthy years -- about 18 million healthy years of life due to illness – is a serious concern. Respiratory and cardiovascular diseases are key reasons for air pollution-induced premature deaths. The situation requires tough action to reduce harmful emissions from vehicles, and other sources in urban areas, this will further require cleaning up the fuels so that India is able to set a targeted reduction in emissions.
Considering the fact that a very large number of people die because of airborne pollution, why have the governments been so irresponsive to the problem?
Government action to reduce air pollution is not at the same pace as the rising problem. That is the primary reason. The action plans to reduce the air pollution are still not made by most cities so there is no targeted reduction strategy being set. While there are national level policy measures – such as auto fuel policy – which will be tightening the emission www.governancetoday.co.in
norms, BS V and BS VI norms will not kick in before 2020 and 2024 respectively, as per the current proposal. This makes the task of achieving clean air even more difficult. The health effects and its impact on the economy is enormous that must be emphasised to take tough measures.
Your organization has been a driving force behind the ‘environment compensation charge’ by the Supreme Court on trucks entering Delhi. But will it serve the purpose, or it is only a temporary arrangement in your opinion? Delhi anyway has the highest numbers of cars and other vehicles plying on its roads.
It is based on ‘polluter pays’ principle. The pollution caused by trucks is enormous and the compensation charge is being implemented to act as a deterrent to use Delhi as a transit route while other alternative roads remain underutilised. While this is enforced to target the winter pollution but this actually means that government will have to introduce stringent emission reduction measures for on-road and old vehicles. And, since medium and heavy duty vehicle segment are one of major contributors to air pollution – this also calls for improvement of truck technologies so that their impact on air pollution can be reduced. Since the bypasses have been considerably delayed, the compensation charges became inevitable. It is true that Delhi also has highest numbers of cars and two wheelers – but fiscal measures to reduce the numbers has remained an unfinished agenda. We also have been demanding increase in
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road tax and parking charges so we will keep pushing this. Pollution reduction strategy from trucks and private vehicles cannot be compared as improving public transport and discouraging private transport will require a different mobility strategy.
Why have there been no check on rampant sale of automobiles in a city like Delhi as they are also major contributors of air pollution?
The public transport improvement has not kept pace with rising demand for mobility. Also, successive governments have not taken any measures so that private vehicle sales and usage can be reduced. Clearly this requires public support and engagement, but also taking a stand that government as a public policy will support public transport, not automobiles usage.
What about the pollution from factories and industries in and around big cities that already suffer from scarcity of green lung?
It is true that there are several sources of air pollution in the NCR. And there is no way that we can downplay any source of emissions in terms of stringency of action. That is the reason we have prepared an action plan to reduce air pollution from all sources. What has been proposed to the government is to set targeted reduction from each sector, making concerned departments accountable, and strict and regular monitoring of the measures. Somehow the NCR level air quality planning are not synchronised and efforts being made in Delhi are not replicated by neighbouring cities. This requires political understanding, and introducing strategies that takes air pollution as a regional
problem rather than just a city’s problem.
Bursting of firecrackers and burning straws is another area of concern from health point of view. But governments are still not serious about the issue. These are another source of emissions during the onset of winter. But strategies to reduce emissions from multiple sources require taking proactive action and being prepared to handle the situation when a source becomes a major cause. So the government needs to be equipped with emergency response action. In terms of regulations also, we need to recognise that firecrackers and burning straws are part of cultural practices or are associated with agricultural practices. Therefore, the strategies have to be customised to include command and control but at the same time working with community to win support for such measures.
How successful has been your organisation’s effort in compelling government to work for the betterment of ecology and environment?
We have had some successes over a period of time. The campaign on air pollution in the 90’s helped in converting the entire DTC bus fleet into CNG and in improving fuel quality. Similarly, on many other fronts we have succeeded in influencing policy and informing the public about the risks they face, for example, from presence of pesticides in soft drinks, or antibiotics in honey and chicken, or the grave danger of pollution itself, but clearly there are newer challenges that come up as we go along. December 2015 I 39
Myanmar elections Anand Mishra In one of the most anticipated and watched elections South African election of 1994, Myanmar went to polls on Nov 8, which has the potential to change the history of the country. In what can arguably be termed as the first free elections in the history of the nation, the country overwhelmingly voted for the Nobel peace laureate Aung San Suu Kyi, who will ironically not become the president because of the constitutional provision that bars Myanmar citizens married to foreigners from occupying the office. However, her party has won decisively, which has its advantages as well as challenges for the party and the leader who has been the symbol of democracy in the poorest nation of the region for a quarter of a century now. Obviously, the results have profound implications for the region, including India, which has seen terrorists based in Myanmar launch attacks on India. On the other hand, China, which had an excellent relationship with the military regime in Yangon, has reasons to be worried as Aung San Suu Kyi is widely seen as pro India. But most importantly, the election results would be mostly seen in terms of the tremendous hope and faith that the people of the country have reposed in Suu Kyi. Going forward, getting the economy moving again and pulling people out of poverty would be the most significant challenge for the new government, which would not only require administrative and policy acumen, but also the tact to carry along the military, which, despite moving out of power has enough power to influence the direction of the country, thanks to the constitutional arrangements. Suu Kyi’s party, the National League for Democracy (NLD) swept the polls in a performance which was better than most expectations. While no one expected the ruling Union Solidarity and Development Party (USDP) to win elections, the military had expected ethnic parties to do better which would have made the scale 40 I December 2015
Beyond the mandate The NLD faces a tougher challenge than elections; the governance
Aung San Suu Kyi has bee the most visible face of Myanmar’s struggle for democracy
of NLD’s victory smaller. But NLD swept the polls across the region to win a strong mandate. The party won 135 of 224 seats in the House of Nationalities (the upper house) and 255 out of 440 seats of the House of Representatives. However, only 168 seats of the House of Nationalities and 330 seats of the House of Representatives were contested because as per the current constitution, 25 per cent of the total seats in each house are reserved for the military. The constitution can also not be amended without military’s concurrence. Military also controls the key national security ministers including defense, home affairs and border affairs. This makes the democracy of Myanmar less than the completely free and representative. It also makes the functioning of government all that more tough and transactional.
The governance challenge
The election, its results and the very fact that the election was held in a free and fair manner, has transformative implications for the country which for the most part of the last half century has
been mired in power struggle, civil violence, ethnic violence, international sanctions and an untiring struggle for democracy by Aung San Suu Kyi. For most part of the last couple of decades, the country has been isolated; many feel it was the second most isolated country after North Korea. But since the beginning of the process of democratization, which was surprisingly well managed by the military backed regime, the situation has changed for better. It ended its international isolation on one hand and allowed decent economic growth on the other. The release of Aung San Suu Kyi from house arrest and country’s liberalization under President Thein Sein also facilitated the interest of international players in the natural resource wealth of the country. As the NLD forms the new government, the most significant challenge that it would face is to boost the economy. Because of the resource abundance which has traditionally been dominated by very few people, often connected to the military, the government may have to deal with such vested interests and also work on www.governancetoday.co.in
increasing the lot of farmers who have till now not reaped the benefit of economic recovery. The new government will also have to deal with the complex ethnic issues which have a long history of armed struggle against the state. The festering issue of Rohingya Muslims is an issue that would require immediate attention as it has brought immense international condemnation to the country. Fortunately for the NLD, the performance of the one and a half dozen ethnic parties was not good enough in this election, which gives the NLD significant leverage in handling the complex issue. But as past experiences show, exclusion from the broad policymaking deliberations can lead to violence by ethnic groups which is the last thing that the new government would want as it aims for a “reconciliation” government. The situation could be especially complex while dealing with ethnic groups like “Kachin” and the “Wa,” who have long standing relations with China and there are voices within China who feel that these relations can be cultivated in case relation between Beijing and Yangon sours.
Wedged between China and India
For long, Myanmar has been in the exclusive sphere of Chinese influence as the military regime found the only sympathetic audience in Beijing. On the other hand, China poured in money and arms into the country. Between 1988 and 2013, China accounted for a whopping 42 per cent of the $33.67 billion in foreign investment that flowed into Myanmar. China was also the main arms supplier to the Middle Kingdom; by some accounts, more than three-fifth of the country’s arms imports during that same period were from China. China also got to open a listening post in Coco Island, which is just 40 Km from Andaman and Nikobar Islands in Bay of Bengal. However, as Myanmar stepped on democratization path and the world opened up to the country, www.governancetoday.co.in
the rulers found the opportunity to diversify its arms imports which drew in Russia and slowly India as well. This has resulted in gradual decline in the currency that China enjoyed till about half a decade ago. Moreover, because of the forced relocation, land confiscation and the inflow of Chinese labor resulted in gradual but definite popular antagonism towards China in the country. It is also believed that the political and bureaucratic institutions in Myanmar are more favorably disposed towards India than China. And this decline of China’s influence over Myanmar has been coincided by the sustained growth of ties between India and Myanmar. Historically, India had adopted a highly principled support of democracy, resulting in near total collapse of diplomatic relations after 1990, which was the cashed on by China. However, over one and a half decades, witnessing the impact of its stance, Indian recalibrated its strategy which led to warming of relations, indicated by numerous bilateral visits. At a more operational level, people of Arunachal Pradesh, Nagaland, Manipur and Mizoram have linguistic and religious links with ethnic groups in western Myanmar, which has its advantages and well as disadvantages that has been amply visible in case of Naga insurgency. India would certainly not like to conduct cross border raids. Instead, it would want the continued cooperation of Myanmar’s government to tackle the insurgents on the other side. India would also want Myanmar government to enhance its operational and surveillance capability on border areas. For this, India can provide assistance to Yangon. Finally, India would be much pleased with the decline of Chinese influence on the country as it is feeling encircled by China. Myanmar is also the key to India’s Act East policy. As the Indian government plans to increase economic relation, including trade with Southeast
Asia, Myanmar will be the most crucial element of the calculus as it provides the connectivity between India and Southeast Asia, besides a huge market for Indian goods and investments. Already Indian oil majors like ONGC Videsh and GAIL India both have stakes in the A1 and A3 blocks of the Shwe offshore gas field in Myanmar. Another big area which Myanmar would be interested is Indian tourists. Vehicular traffic would get a boost from the completion of the IndiaMyanmar-Thailand (IMT) trilateral highway, the trial run of which is likely to begin from December. The Myawaddy-Thinggan NyenaungKawkareik section of the highway (in Myanmar) became operational in August this year. In short, the new Myanmar government and Aung San Suu Kyi have a tough task ahead, which is compounded by the relative lack of administrative experience of the NLD party. But inexperience is not an excuse for inaction. The people of the country have reposed enormous faith in the party and the person and they would want visible delivery of promise of corruption free economic upliftment. The country, where South Asia and Southeast Asia meet, has some unique advantages; it is rich in natural resources and is located in the vicinity of large, fast growing economies and regions. Further, because of its location, it is also going to be courted by great powers as Indian Ocean becomes strategically more important. The new government will also face some crucial challenges in form on corruption and ethnic issues, especially Rohingyas. The Constitutional reforms which are overdue will also test the ability of the new government to carry along the military, which would try to preserve its fiefdoms guaranteed under the existing constitution. All this will require as much resilience from Suu Kyi as the grit and determination with which she fought for democracy. anand@governancetoday.co.in
December 2015 I 41
interview
Daniel Carmon Honorable Ambassador of Israel to India
BOTH india and israel ARE HUNGRY TO CHANGE FUTURE
Over the last one decade, the most dramatic improvement that India has had in relation with any country, it is arguably Israel. During much of cold war era, India had been less enthusiastic in having a warm relations with Israel, which changed in January 1992, when the two countries established full diplomatic relations. Since then there has been a steady strengthening of relations between the two countries. Despite being geographically distant, both share much similarity in culture, climate, value systems, agriculture, etc. Also, both countries have been sufferers of the worst kind of 42 I December 2015
terrorism. Bound by a multitude of common interests, both countries are today cooperating on multiple issues that range from agriculture and irrigation to security and antiterrorism. Israel has also emerged as one of India’s most prominent weapon suppliers in recent years. As countries with extremely high capabilities in information technology, both countries have been collaborating in start-up arena as well. To discuss further how the relation between the two countries can be strengthened, Anand Mishra, Editor, and Rajesh Mehta, Consulting Editor, ‘Governance Today’, interacted with Mr. Daniel Carmon,
Honorable Ambassador of Israel to India. Edited excerpts:
You have mentioned that your assignment to India has been one of your best assignments. Could you share your experiences of India and your assignment here? The assignment to India has been a fascinating experience for me. As a diplomat who has seen different aspects of diplomacy in different parts of the world, this assignment is
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special because it touches all aspects of life for people of both the countries. The relations between our two countries are not confined to governments or ministries of foreign affairs and statesmen, it relates to the lives of citizens of each country; farmers, technicians, engineers, organizations, as well as issues like food security, water management, security challenges that both face etc. All of these drive the relations between India and Israel and it is our mandate to lead and further these relations. This is why I am so satisfied with this assignment.
Recently, India’s President Pranab Mukherjee visited Israel. How do you see this visit impacting the relations between the two countries?
It is the first and historically important visit which came after many years of the good and strengthening relations between the two countries. While the relations were established around 24 years ago, the visibility of the relationship had not been high because of several reasons, including the lack of political will. But over the last few years, there have been some high profile ministerial visits, especially over last one and a half years, and this visit of President Mukherjee would be a turning point. It has a high symbolic value as it is from the first citizen of the country. I hope this visit will soon be reciprocated by the visit of our President to India, which would send a good message to people, organizations, institutions and ministries that the relations between the two countries are growing and should be further promoted. So, I would say that this visit not only has a symbolic and ceremonial value, but also an important operative value.
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How do you see the geostrategic challenges that both countries are facing currently and how do you think India and Israel can fight these challenges together?
Both Israel and India are situated in different geographies and are impacted by the developments in their respective immediate neighbourhood. But there is something that transcends the differences in size, geography and culture. Both India and Israel share common values, foremost being democracy; both have active, open, vibrant democracies. Both also share common challenges like security. We both have suffered in different but similar ways from the terrorism which is the plague of our times and we both share the will to fight. It has brought us together to cooperate and share our knowledge and experiences in our common anti-terrorism endeavour. A year ago, we signed an agreement to cooperate on antiterrorism and I would say it is one of the important areas where India and Israel are cooperating.
Staying on the security issue, over the last decade or so, Israel has become one of the most prominent arms suppliers to India. How do you see the defense cooperation between the two countries going forward?
Defense has always been one of the main pillars of the relations between India and Israel. Not much has been publicly discussed about the defense relations between the two countries and both countries would like to keep it that way. I would say that yes, buying and selling of weapons is an important
part, but the defense cooperation between the two countries goes much beyond that. Research and development is a crucial part of our defense relationship; we know and have confidence in each others’ capabilities. I would only say that both Israel and India are benefiting from the collaboration between the two countries in the defense field.
Not many people realize, but Israel has been helping India in irrigation for a long time. Could you let our readers know more about that?
I would prefer to call it cooperation instead of help because it is far from being one way street. It is our friendship and cooperation that is translated into areas of our interest including irrigation. We have developed certain capabilities over last few decades, which I call managing a ”Developmental Laboratory.” Since our independence in 1948, we had to rebuild our nation which we built through several challenges that all nations face. India is fighting its own developmental and socio-economic challenges. And Israel, as a friend, has been cooperating and sharing its experiences in areas such as water, irrigation, food security, science & technology, health etc. One of our biggest projects has been Indo-Israeli Agricultural Project, wherein we set up centers of excellence in various states of India. Together with the Indian government, we are building such centers in over 10 states, which are working as training centers and demonstration centers showcasing Israeli technology. Farmers can come and see these technologies and learn how these technologies can help them improve crop productivity. We have tested the ‘more crop per drop’ technology in Israel and the same can be tried in India. For example, we can try applying our own marginal capabilities in December 2015 I 43
There is an immense scope of cooperation between India and Israel in agriculture and water management
improving the mango yield; I am quoting mango because India has experience of growing mango for centuries. Same can be tried with other crops too, such as citrus fruits, flowers, olives etc. So, along with defense, agriculture is a big area of cooperation. We are even getting into cooperation in dairy business.
What is the biggest challenge that you feel Israeli companies are facing in India today?
Well, this is for businesses to find out and to point out. But as a bystander, I would say that whatever we have talked about forms the environment of business cooperation. Businesses have to identify themselves to the needs of the society. Business is not just about taking decisions, sitting in India or in Israel. Businesses
44 I December 2015
need to learn about the other side. You have to see what are the challenges on the other side, bureaucracy for example. You need to understand the demand on the other side. Does India need more on the agriculture or communication, or something which is not on the radar itself? Sending business delegations is not enough. You cannot ask for business right after delegation visits, you need to have patience. There is a different world when you move out of the airport in the another country and you need to be respectful of the norms and culture of the same. It takes time and there are no quick fix solutions. I feel confident that if businesses approach the other side with the right mind-set, we will all benefit from it.
Both India and Israel
have a lot of start-ups. How do you think the start-up ecosystem of the two countries cooperate?
As a matter of policy, Israel has always had a good ecosystem of cooperation among government, academia, industry and the financial sector, with much push from the government. A few years ago, a decision was taken to provide active encouragement to start-ups, to enable them to take first steps; even providing initial money despite knowing that many of the start-ups do not emerge as companies. This risk taking is typical of Israelis who always look to accept new challenges in startup space which has brought us the flattering identity of being the “Start-up Nation,� and we are very proud of it. India also has a similar characteristic. It is the nature of professionals in start-ups and IT www.governancetoday.co.in
Indo-Israeli Agricultural Project runs Centres of Excellence in ten states across India
space which strives to pick up an idea from the drawing broad and bring it to the stage where it serves a need, that is common to both India and Israel. The two countries are relatively young, have rich and proud history and are both hungry to change the future. This can be seen in India as well as in Israel and it, therefore, makes sense to share the experience and learn from each other. What Indian side can bring to the table is experience and size. Many big cities in India, from Noida and Gurgaon to Kolkata and Bangalore, have their own cybercities with their own ecosystems of creativity and innovation. And then there are big companies in India that are liaising with and showing interest in Israeli companies. Many of the Indian companies like Infosys have bought up some Israeli start-ups www.governancetoday.co.in
whereas conglomerates like Tata, Mahindra etc. are at various stages of partnering with many Israeli start-ups. One is already in the process of bringing an Israeli start-up in its own incubator in India. So, if Israel is the “Start-up Nation,” there is also something called up “Start-up India.” Indian and Israeli companies are cooperating in India, in Israel and in Silicon Valley. I think you heard our Prime Minister saying that in Silicon Valley you hear only Hindi and Hebrew, and a bit of English. You should look at the profile of Indians visiting Israel; the number of entrepreneurs and professionals in areas like IT, communication, start-ups, Innovation etc. has grown dramatically in the traffic between India and Israel.
How can we increase tourism between the two countries?
Tourism and people-to-people contacts are areas in which two countries should do more. It is definitely on our table. We don’t know each other enough. India does not know Israel enough and Israel does not know India enough. And when I say India, I don’t mean Delhi or other big cities in India. We at the Israeli embassy try to travel as much as possible. But we want to see more people traveling, learning, liaising, and having more students studying in each other’s country. I also would like more flights between the two countries. We have direct flights to Mumbai, but I would like direct flights to more north and south Indian cities. I think more people should travel between the two countries which would work to improve relations further, a relation which I characterize as friends, partners and allies. December 2015 I 45
Balochistan
The start of a power struggle? China stands to gain a lot from the project it runs in the province of Pakistan.
Lekshmi Parmeswaran The Damocles’ sword that has been hanging over India in the form of the Gwador port is slowly taking a tangible form. The transfer of 2,000 acres of land in Balochistan to China by the Pakistan government is a clear sign of both the nations’ commitment to achieve their end goals. This one step holds the power to significantly alter the geopolitical realities of the region. The province of Balochistan has been a paradox for Pakistan’s political establishment. Located in the south-western region of the country, it is an area that is noted for wide variations in its topography. The existence of an extremely dry desert climate, the Suleiman Mountains and a coastal line has made it one of the most resource rich regions of the country. But unfortunately, the gifts bestowed upon by nature have all remained untouched as this region has been marred with 46 I December 2015
internal conflicts since the time of independence. The inability of the government to find a solution to the insurgencies meant that the largest province of the country became the least developed and most thinly populated region of the nation. According to the official reports it is to curb these internal wars waged by the Baloch National Army that Pakistan got into an agreement with China under the framework of the China Pakistan Economic Corridor (CPEC) to develop the area. With this, the country is hoping to counter the long standing criticism of the insurgents that the government has been unable to usher in any kind of reforms in the region. The project is aimed at linking Gwadar city with China’s Kashgar City in the Xinjiang region which will have both trade and cultural implications for the two nation states. The 43 year lease agreement signed by China’s National Development and Reformation Commission includes the
construction of an expressway linking the harbor and the coastline, a rail link and breakwater among the developmental projects. The completion of these projects will give Pakistan economy a big boost in terms of exports and the large number of companies that will move into Gwadar. These will also provide job opportunities for a country that has in the current fiscal year recorded an unemployment rate of 8.3 per cent which is the highest recorded figure in the last 13 years. China also stands to gain a lot from this project. Located on the shores of Arabian Sea, bordered by the Persian Gulf in the west and Gulf of Oman in the southwest, the strategic importance of the port is evident. It will provide China direct access to the South, Central and West Asian countries. This will greatly help in bringing down the cost of oil imports, a fact that has been worrying the Chinese administration. Also China has enough technologies to exploit the www.governancetoday.co.in
resources of Balochistan which will prove to be beneficial to both the countries. Politically, the decision to develop the Xinxiang province in China has twin facets. The country will finally be able to address the discontent of the Uighur Muslims who for long have been demanding for the development of the Xinxiang region. In addition to this, friendly relations with an Islamic state will go a long way in appeasing the fear of the minorities.
Beyond what meets the eye
Are the reasons for the construction of the Gwadar port as simple has what has been said multiple times in the official statements? The very nature of diplomacy makes it necessary to look for reasons in what remains unsaid to understand the true repercussions of the project. The province of Balochistan shares its borders with Afghanistan and Iran, two very important countries of the region. These are also the countries which interest multiple stakeholders including the United States of America. This is precisely one of the most important reasons for China establishing a strong foothold in the region. With the United States still having a very strong presence in Afghanistan and with its ties improving with Iran, China would have definitely not wanted to be left out of the power game. This should also be seen as a way for countering the US’s most famous ‘Pivot to Asia’ policy. The route that China is taking at present for the transportation of goods passes through the Malacca Strait where the American army has a very strong presence. With the completion of this port, China will be able to get an alternative route to ensure its energy security. It will also be close to the Strait of Hormuz through which 20 per cent of the global oil shipment pass. This brings with it opportunities for Iran to trade with China and establish good diplomatic relations in the process. “The strategically important Gwadar Port will provide China an www.governancetoday.co.in
If China controls Gwadar port, it will increase its presence in the Arabian Sea
entry into the Arabian Sea, which was earlier a high hanging fruit for China. On one hand, it will connect the western part of China to the world, which is several thousand miles away from the eastern sea ports, while on the other; it will ease Chinese trade relationship with Central Asian countries and Afghanistan”, opines Jatin Kumar, a research scholar from the Jawharlal Nehru University working in the area of defense studies.
Bringing India into the picture
It is impossible that an engagement between China and Pakistan would have no implications for India. Once the port becomes operational, China will definitely be putting a hold over Indian aspirations of gaining supremacy over the Indian Ocean. Not only this, Gwadar port can any day be converted into a naval base which would threaten India’s security. India has already expressed its opposition to the project as it passes through Pakistan Occupied Kashmir (PoK). In addition to this, it would also enable both China and Pakistan to control the international waterways which has the power to put India’s energy security at risk. Foreseeing this eminent danger, India is developing the Chabahar Port in Iran which is only 72 km away from Gwadar. “For India Gwadar is direct strategic threat as it will enhance the
Chinese capabilities of monitoring Indian naval activities and influence strategically important trade route. At the same time, it can be seen as Chinese encroachment in an area where Indian influence is high. The China Pakistan Economic Corridor (CPEC)-which intends to link the Gwadar Port to the region of Xinjiang (which also contains the disputed territories of Aksaichin), is nothing new but a part of China’s “String of Pearls” policy of encircling India in the Indian Ocean Region. It begins from the South China Sea, Sittwe in Myanmar, Chittagong in Bangladesh, Hambantota in Sri Lanka, Marao in the Maldives, Gwadar in Pakistan, extending up to Sudan and Kenya,” adds Kumar.
Threading a difficult path
With the internal conflicts remaining still unresolved in Balochistan, it needs to be seen how far the Gwadar port will help in restoring peace in the region. The involvement of multiple powers each having specific interests has definitely made the future of the region murky. Instead of building on their offensive capabilities, the global powers should focus more on the economic benefits of a more interlinked world. The goal should be to achieve universal harmony than getting enmeshed in a power struggle that will never bear any positive outcomes. lekshmi@governancetoday.co.in
December 2015 I 47
interview
The acknowledgement of strategic advantage of West Bengal is evident entrusted with the responsibility of bringing West Bengal to the forefront of the knowledge industry in India by way of taking a number of proactive initiatives along with facilitating Private Sector Participation in the sector.
What are the major projects that you are planning to undertake or are currently working on?
Upender Jit Singh Managing Director of WEBEL, Govt. of West Bengal WEBEL has evolved from an organization for developing electronics industry in West Bengal, to an agency which is at the forefront of applying high end IT and communication technology to revolutionize government services in West Bengal and also to facilitate high tech investment. Governance Today spoke to Mr. Upender Jit Singh, Managing Director of WEBEL, Govt. of West Bengal, to discuss about he work that WEBEL is doing. Edited excerpts:
Can you explain in brief about WEBEL WEBEL was incorporated
48 I December 2015
in February, 1974 to shape the Electronics Industry in West Bengal. The past few years have witnessed a gradual acknowledgement of the strategic advantages of Bengal and because of the proactive efforts by the Government & other key stakeholders to further strengthen Bengal’s value proposition & reinforce its position as a destination of corporate choice. With the introduction of the Information Technology Policy of Government of West Bengal in 2000, WEBEL fast adapted itself to the changing scenario to suit the requirements of the IT and ITeS industries and geared up to function as the nodal agency
We are working on crucial projects of Smart City, Digital India initiatives, Electronic Manufacturing, Data Centre augmentation, WBSWAN augmentation and ISP augmentation. We also have high impact projects such as Broadband Highways, which deals with Broadband for All Rural, Broadband for All Urban and National Information Infrastructure, and e-Kranti which deals with electronic delivery of services such as e-Education, e-Healthcare, and Mobile based emergency services and disaster related services. Besides these, WEBEL is playing important role in e-Governance which aims to reform government through technology.
What kind of benefits would be provided to investors who would like to come to this city with their offerings and solutions?
WEBEL aims to nurture the Electronics & IT industry of the State, which has seen remarkable growth. In this role WEBEL facilitates the growth of the industry by a host of measures, www.governancetoday.co.in
such as ensuring the availability of quality infrastructure in the form of land/buildings for the investors. WEBEL acts as a single window to new investors as well as nurtures existing investors who are working in the State. In addition to the firm efforts that are more focused on the immediate business requirements, WEBEL as a nodal agency ensures that those incentives are publicized and reach the right investors.
Tell us about WEBEL’s Creation of Online Admission System for the University of Calcutta– Department of Law.
For University of Calcutta, WEBEL developed by its own development team and implemented the Online Admission Management System to facilitate features for smooth admission process which is transparent and without any hassles of the agents and touts. Some of these features include: Payment for applying for courses through Payment Gateway
Student Merit List generation
Student Admit Card generation (specifically for Law students) Uploading of Merit list on the college website E-Counseling execution
Generation of student allotment against individual collages
Government Receipts Portal System (GRIPS) It is a e-governance service interface provided by Government of West Bengal to the citizens, all tax payers, business houses for payment of all taxes and nontaxes revenue. The citizen pays tax/revenue for any department by filling the customized e-Challan online. The system generates GRN for each transaction for identifying the payment and payment can be made using www.governancetoday.co.in
Internet Banking facility or counter payment mode of any bank. There are multiple choices of banks. Departmental services where payment is required to be made are gradually integrated with GRIPS for online payment. The service is free of any charge.
Agricultural Marketing Information Network (AGMARK-NET) Through this services price-related information such as minimum, maximum and model prices of varieties and quantities transacted, total arrivals in the market are fed directly from the markets/districts for dissemination of data through network to any distance with the help of communication devices for the benefit of citizens, farmers, traders, consumers, etc. This is available through website and through SMS for registered users free of cost.
Consumer Grievance Redressal System (Consumer Affairs Department) Services: This provides facility Online Grievance lodging facility for citizen. Also, SMS alert for every grievance lodged. This also provides SMS based grievance tracking system, Online Grievance Transfer facility, SMS Alert for Grievance Transfer. Pension status tracking at Directorate of Pension, PF and GI (DPPG)
Pension Payment
Order (PPO)s are prepared for Schools Teachers, Municipalities, Panchayats and other non-Govt., autonomous bodies under state Govt. at DPPG offices after necessary auditing of Pension files. The pensioners sitting at the districts/blocks/villages will be able to know their pension processing status and need not travel to Kolkata. Pensioners can know the status of processing of Pension Files by entering District and category of Pension, DPPG File Number or Last Name and Date of
Birth of the Pensioner or DI/PSA Memo number and Memo Date. Service is available at www.wbfin. gov.in site in the module Pension File Status (DPPG).
AGRISNET (Soil Health Card)
Data on soil conditions of a farmer’s plot is available in real time from the test results of the laboratory. The details is intimated through SMS to farmer as soon as test results have been entered and health card generated. Also recommendation of dosage of fertilisers for desired crops to be cultivated is generated by the software with fair accuracy.
What role WEBEL is going to play in the mega project like Smart City?
ICT is the most important component of the Smart Cities. WEBEL being the nodal agency of the state government will play a leading role in the Smart Cities Program. With its vast experience in implementing large projects in various Smart City components like tele-medicine, e-learning, smart parking, security surveillance, video – conferencing, and e-library, WEBEL is uniquely placed to steer the Smart Cities program. WEBEL has undertaken a major capacity and skill building initiative to address the challenges of the Smart Cities program. It is in the process of selecting consortium partners in SI, Software, Hardware, Networking and telecom domains. To this end WEBEL has floated an EoI enquiry which has received a huge response.
How do you plan to usher e-Governance in West Bengal?
There are many services that are already available for citizen on the Internet and these can be accessed either from home or Cyber Café or Citizen Kiosks or Common Service Centers (TathyaMitra Kendra) in the State. Some of the prominent ones are enlisted below: December 2015 I 49
Health
Few for women sanitation
Because of poverty and lack of awareness, majority of rural women do not use sanitary napkins and are vulnerable to many diseases Praveen Raman Abha Ekka, a student of sociology at the Ranchi University, till recently adheres to the belief that menstruation is ‘dirty’ and would avoid going to schools. But her thoughts changed when she moved to the capital city of Jharkhand some two years ago for higher education. Now, Abha doesn’t need to miss her classes during ‘those days’ as she is better prepared to deal with it, something that was not available at her village. Unfortunately, millions of girls of Jharkhand are not as lucky as Abha, they still use primitive methods during that time. In a country of 355 million menstruating girls and women, such problem is rampant. There are many who are not so lucky. “Two-three days before I got my periods, I used to feel ill, thinking what to use during those days because there was no cotton cloth. Whenever I think about it, I get a headache. When my periods start I take anything from my house. I have spoilt cushions, pillow covers, bedsheet to use for periods. Due to that many times I have been scolded and even beaten up by my mother but what do I do? Once in anger I didn’t have food for two days. When I asked my classmate for pads, she said, these are not for free. These are very costly. She had got them from the market. I feel sick and often pray to God to stop my periods forever,” says Shalu, daughter of a Tangewala who lives in Saharanpur, Uttar Pradesh. Her father’s income is barely enough to meet the daily needs of the family. The unbearable trauma in Shalu’s words makes you think; if she had enough cloth, would menses still be a monthly disaster for her? 50 I December 2015
Girls in rural areas are exposed to diseases as they have no access to sanitary napkins and are not aware of its health implications. More than health, it also hurts education of girls as they avoid going to schools during that time. A plethora of large studies lay out the numbers - 23 per cent of girls drop out of school when they hit menarche, 31 percent of women miss 2.2 days of work when they menstruate, girls miss 20 per cent of school days every year while there is a 70 per cent increase in incidences of reproductive tract infections in the absence of menstrual hygiene. A study focussed on 2,579 girls and women in slums in Madhya Pradesh, Chhattisgarh and Uttar Pradesh found out that while 89 per cent of respondents used cloth, with over half of them using the same cloth for more than one period, two per cent used cotton wool and the same numbers used ash to absorb menstrual flow while only seven per cent used sanitary pads. There is a potential loss of about US $100 billion in GDP to India as a result of girls dropping out of school due to menstrual health issues and thus getting into early marriages and early pregnancies. More girls in schools means universal primary education and increased gender parity while contributing to eradication of poverty. Educated mothers also contribute to improved maternal health and reduction in child mortality - all of which figure in the Millennium Development Goals. Lack of availability of sanitary towels has a profound economic effect on women. Women form a big share of rural work force. One study found that the majority of these women were using rags as
menstrual cloths. Infections are so common in the women that they often fall sick. There are two major causes of why girls and women in countries like India face harsh problems while menstruating. One is, predictably, the high poverty rates and the direct consequences associated with this. This includes poor infrastructure meaning lack of specialisation of domestic and public toilets for women. In rural areas, there is shortage of latrines and when women are menstruating their problems are amplified. Also many low-earning women compromise on buying herself sanitary towels to buy food to provide for her family. While the governments have taken various measures to provide sanitary napkins to poor girls and women, but the real fight is against the taboo attached with it. Our society must realise that mensuration is a normal biological process just like breathing and eating. Recently, the UP government has rolled out the Kishori Suraksha Yojana under which one pack of 10 sanitary napkins every month shall be handed out to all girl students in classes 6-12 in government and government aided schools. This is just a beginning as there are more girls outside the government and aided schools who live under the dangers of health problems. Women play an important role in rural economy; their well being is social well being. If there is no better environment for their health, the welfare of the society will have a setback and the availability of napkins is the first step towards ensuring proper sanitation to women. Kirti Singh, a Ranchi-based www.governancetoday.co.in
the my pad revolution
The New Delhi-based Goonj is using clean cotton cloth to manufacture sanitary pads for rural women and girls. Till date the organisation has distributed more than 30 lakh MY Pads across India that means more than 6 lakh sq. meter discarded cloth put to use. The pads are made avaulable at very low cost gynaecologist points out lack of supportive environment to fight against it. She said, “A supportive environment needs to be created for girls to use sanitary napkins. How does the giving of sanitary napkins make a difference when there are no functional toilets in schools or where functional toilets have no water?” Those are extremely valid considerations in a state where 64.7 per cent of all households do not have functional toilets and while official data says that only 2.99 per cent government schools and 10.32 per cent private schools do not have toilets, the reality of these is dismal. While merely doling out sanitary napkins without awareness and supportive infrastructure is unlikely to make any long term difference, the mere idea of what currently mass produced pads will do to the environment is also worrisome. www.governancetoday.co.in
This is the cotton cloth they get from the cities; bed sheets, salwar-kamizes, cotton t-shirts etc. What makes it powerful is when Goonj uses these MY Pads as a tool for spreading awareness about the related health and hygiene issues. The model on which it works is very effective. Photo: Goonj
Many organisations have been working towards adequate female sanitation facilities, and better awareness and understanding of menstruation. Many organisations and initiatives help to reduce the problem through hygiene education, cheaper sanitary towels, and female public toilets. However, perhaps the stubborn social myths around menstruation, and cause so much distress to girls and women, are much tougher to get rid of. Meenakshi Gupta, the cofounder of Delhi-based Goonj, points out the systematic flaw in the delivery system. While speaking to this magazine she says, “When you randomly ask women in villages how many sarees do you have? The answer usually is 2-3. There isn’t enough cloth to even cover their bodies. Struggling with other more urgent needs like food, shelter and health, women tend to
treat their own need for a clean piece of cloth for menses as the last priority. In any case, most think of menses as a symbol of dirt and something which needs to be only removed from the body.” She also says that the lack of access to clean cloth pads or market products, inability to afford market napkins and the lack of awareness about the health and hygiene issues around menses are the three key reasons why women face a huge challenge in dealing with their menses in rural India. The government can play a big role especially in spreading awareness about menses, to highlight it as a normal biological process. That would help break the strong culture of shame and silence around the issue. That is also the first challenge we face in addressing this issue. praveen@governancetoday.co.in
December 2015 I 51
Health Lekshmi Parmeswaran India’s relations with traditional meIndia’s relations with traditional medicines date back to 3000 B.C when Ayurveda first found mention in the oral traditions. Later on Atharva Veda dealt with some aspects of this system. But it was only after the compilation of Susruta Samhita and Charaka Samhita that Ayurveda finally got its scientific form and in Susruta’s words, it became the ‘branch of knowledge that enhances life’. So deep are the roots of traditional systems of medicines in India’s history that its importance still continues to linger on in the society. It is true that with the advent of technologies and the modern system of medicine, the popularity of many of the traditional schools have waned away over time. But to say that the importance of these systems has lost all relevance in the present times would be a gross underestimation of the ground realities. For many in the country, it is still the wisdom of yore that can provide lasting cure to their conditions. With the setting up of the Ministry of AYUSH on 9th November, 2014 which includes Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy, alternative medicines have got the much needed boost for resurgence. It is well known that across the world, the Indian schools of medicines are widely recognized and practiced. The uniqueness of India lies in the fact that for each and every region, there are multiple systems of medicines that have been preserved and are now being handed down from generations to generations. The use of traditional herbs in many of the local communities points towards how certain practices are still valued by people.
The role of AYUSH
The government formally recognized the importance of alternative medicines in the year 1995 when it set up the Department 52 I December 2015
of Indian System of Medicine and Homeopathy. It was later renamed to AYUSH in 2003 which was then converted to a ministry by the incumbent government with the aim of popularizing the traditional systems. The aim was to make these traditional systems of knowledge accessible to the common man and put a system in place where alternative medicines are looked at as the first option than the last resort. By allocating a total of `1,214 in the 2015-16 budget which also includes the setting up of 50 new AYUSH centres in 22 districts, the ministry has shown its resolve in treating it as the original system of medicine. It has also announced plans to set up another 150 centers by 2019. The biggest advantage of these centers lies in in bringing all the systems on a single platform, thus giving people the freedom of choice which they would have previously lacked as locating the practitioners wouldn’t have been easy. Within the country, the popularity of AYUSH has seen a substantial rise. After a road show that was conducted by the Rajasthan Government, there were MoU’s worth Rs 2,455 crore signed covering various aspects like the establishment of a wellness centre, herbal park, ayurvedic college and a pharmacy. And it is not just the established schools that AYUSH is looking to promote, it has also given equal importance to the lesser known healing practices that are mostly area specific. The government’s plans to give official status to Horopthay which is an indigenous system of medicine practiced predominantly in Jharkhand points to the revival of the traditional knowledge base. The ministry has recently launched a scheme called the Swasthya Raksha Program under its campaign to prevent diseases that are caused due to poor standards of hygiene and sanitation. This has been formulated with the goal of bringing the weaker sections of the society under the ambit of AYUSH.
New life An announcement for setting up of the first AYUSH University in Delhi was made by the AYUSH Minister Shripad Yesso Naik which aims at taking a holistic approach towards the integration of the systems. Also the fact that the country already has 7.37 lakh AYUSH practitioners working in over 3,600 AYUSH hospitals is an encouraging sign and reinforces the faith that millions have placed in the traditional medicines. In the process of spreading awareness within the country, a remarkable achievement of the ministry that needs to be mentioned here is the signing of bilateral agreements with countries like Bangladesh, Mauritius, Nepal and Hungary that has enabled the setting up of Indian alternative medicine centers in those places. With such a step, the government has been effective in giving a scientific thrust to the use of traditional therapies.
Miles to conquer
The discovery diseases would have sole dependence on medicines redundant.
of new made the traditional What can
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for alternative medicines making the mark worldwide The year 2015 would arguably have been the best year for both the practitioners as well as believers of alternative medicine. The honoring of the Chinese Professor, Tu Youyou with the Nobel Prize in Physiology or Medicine for her discovery of artemisinin, an alternative cure for Malaria using the Chinese traditional medicines would have in a way justified the claims of all those who had been espousing the infallibility of the centuries old knowledge. Traditional Chinese medicine has a history of 2,000 years and is a combination of herbal medicine, exercises and good dietary practices. But the biggest contribution of this system to the world today remains the acupuncture therapy, which is used for pain relief. Countries across the world have introduced it in their medical systems along with conventional therapies. Another system which has stood the test of time to get integrated into the alternative discourse is the ancient Egyptian medicine. This also has its primary focus on the medicinal properties of various plants and the methods of drug making mentioned in its literature is relevant in the cure of many modern day diseases. be done to keep the knowledge alive would be to use this as a complementary form. For the treatment of diseases which does not require any surgical procedures, all the traditional systems have proven remedies. For example, the www.governancetoday.co.in
treatments of rheumatoid arthritis as well as geriatric care are done most effectively in ayurveda while homeopathy is effectual in curing all dermatological conditions and tackling the pain of terminally ill patients.
One more important point that never finds itself a part of any important discourse is that ayurveda had laid down some crucial steps for the management of HIV when the world was finding it difficult to grapple with the spread of this virus. It is now the AYUSH ministry’s responsibility to take out such interesting facts and make more and more people aware of the inherent benefits of the traditional systems. However, the efforts should not stop with mere spreading of awareness. Many of the valuable manuscripts that are a rich treasure trove of knowledge are no longer in India. The maximum number of Ayurvedic manuscripts is preserved in German libraries. The government should be able to bring these back to India or initiate a process where Indian students can take a look at these documents and work on serious areas of research. Only such a proactive approach can help India take greater strides in the field of alternative medicines. lekshmi@governancetoday.co.in
December 2015 I 53
Health
Going out of reach In a country where 22 per cent of population lives under BPL, the public healthcare system is facing shortage of funds & doctors Lekshmi Parmeswaran another front and this time thMahatma Gandhi was once quoted saying “It is health that is real wealth and not pieces of gold and silver”. The current situation of healthcare in India is anathema to the Gandhian ideals and the country has only been seeing an increasing commercialization of this sector. Probably no issue has stratified Indian society to the extent that healthcare care has. The division of the citizens into haves and have-nots is striking whichever way one looks. With the government spending just 1.4 per cent of its GDP on public health for a country where 21.9 per cent of its population live below the poverty line, it comes as no surprise that healthcare has become the single biggest concern when one tries to get a glimpse into the future. Also the contrasting realities of this sector have given rise to more questions than answers regarding the sharp disparities that is visible even when one takes a cursory glance at the larger picture. Some of the private hospitals in urban India are known for their high end facilities and have become the biggest hubs for medical tourism. These hospitals are housed with the most modern equipments and offer facilities that are on par with the international standards. But, in spite of the giant steps taken by what can be called the ‘creamy layer’ of healthcare, none of these benefits have trickled down to those who cannot afford the expensive treatment that is provided in such hospitals. For the rural India and the urban poor, the dawn of a serious illness on a family member still means a complete drain of the 54 I December 2015
finances and a future that is often destroyed forever. Why does India that boasts of institutions like the All India Institute of Medical Sciences and has some well formulated pro-poor health schemes, still lack in the delivery of essential services to those in need? There are no easy answers to this question as the challenges before the country are myriad. But the perception that only the private sector is capable of providing good quality treatment to the ailing is where the crux of the matter lies. The very mention of government hospitals evokes in people images of disarray. They are seen as places with no order; where patients are huddled together and where the treatment given is substandard. While that is indeed the case often, the reasons attributed for the incompetence of these establishments might be very different from all that has been believed to be true so far. A lot many facts about government hospitals are often overlooked while making an analysis of the prevalent conditions. When nearly 30 per cent of the country’s population lives below the poverty line, it also means that they have recourse only to low cost treatment. With such a large number of people visiting these hospitals, everyday a new challenge is thrown at the doctors working in such establishments. They handle more number of cases than any private hospitals and in the grueling situations with no proper support system. The real problem then becomes the lack of enough number of doctors to treat the less fortunate, and the lack of facilities at government hospitals. According to World Health Statistics released by the World
According to World Health Organization, India has
Health Organization (WHO), India has only 0.7 physicians per 1000 patients, which are well below the WHO requirement of 1:1000. The Medical Council of India has accorded full recognition to a total number of 302 medical colleges which will train 42,175 medical professionals while the total number of colleges in the country stands at 412. A further breakdown of these figures will reveal the real issue hindering the progress of the public health care delivery system in India. Among the 412, only 200 are government run institutions and the rest 212 are in the private sector. The high capitation fees charged by the latter establishments with little focus on real merit make many of the students graduating from these colleges incompetent to face the real world challenges. And www.governancetoday.co.in
only 0.7 physicians per 1000 patients, which are well below the requirement of 1:1000
the select few who are capable enough to treat patients prefer to work in the private hospitals as that is where the monetary benefits are the maximum. Related to this, is the problem of support staff. The government hospitals are woefully short of support staff. The nurses who are expected to manage more patients than it is humanly possible, naturally develop an attitude of resignation and often are not able to attend to the needs of each and every patient. The lack of sufficient numbers of lab technicians implies that the tests are never done on time and diagnosis come a little too late in some of the cases. Most of the hospitals do not even have sufficient number of beds to accommodate all the cases that come because of which many are forced to turn to private hospitals. www.governancetoday.co.in
But not all can afford private healthcare. “The condition inside the government hospitals is mostly pathetic. The toilets are unclean and there have been occasions when I was left with no option other than using the soiled bed sheets. The used syringes and cotton swabs with blood stains on it which have become a common sight in the general wards and are a constant source of infections�, opines Omana, a domestic worker whose only recourse to get treated are the government hospitals. There is also a clear lack of structure in the government hospitals. Often patients are made to wait in long queues which sometimes becomes fatal for those suffering from serious illness. In cases of emergencies there is no system of checks and balances in
place that would make it mandatory for the doctors in to attend to such cases with a sense of urgency. The only remedy available to ordinary citizens for medical negligence is to take the route of long drawn legal battles through civil courts. Besides, the sad reality is that a good number of the doctors enrolled in the government service prefer to work in hospitals abroad as those are equipped with the most advanced technologies and they also get a chance to earn more. Money also becomes important in the prescription of medicines and tests. Many doctors in the public sector sensing an opportunity to reap in benefits enter into a tacit understanding with the pharmaceutical companies and testing labs and subject patients to procedures that were never needed in the first place. December 2015 I 55
The government hospitals are woefully short of support staff
Time for action Correcting all that is wrong with the public healthcare delivery system might not be possible in one go. But there can be efforts put in every day to improve the present situation. For that what is primarily needed is an understanding that only a healthy population can take the country forward. Also the cut of 5.7 per cent in total allocation to the health sector in the budget is in no way justified. Coming after the tabling of the National Draft Health Policy which has provisions of increasing the expenditure on health to 2.5 per cent of the GDP, it casts a veil of suspicion on the intentions of the government. Here many have argued that the announcement of setting up of ten more All Indian Medial Sciences (AIMS) institutions could be a panacea for all the ills affecting this sector. Needless to say, this argument is based on false premises. What India needs at present are good hospitals within 56 I December 2015
a radius of 5km of every residential area, be it rural or urban. More money needs to be spent on creating the infrastructure which includes diagonistic equipments that can give accurate results. Perhaps, the most important of all is to bring in accountability and hold every stakeholder responsible for the timely delivery of services. A separate tribunal should be created and doctors should be brought under the Consumer Protection Act in order to curb any kind of negligence. Legal provisions should also be made to bring the BPL families under insurance cover. The biggest irony here is that India does not need to look outside to revolutionize its healthcare system. Three states in the country have forged ahead in ensuring an egalitarian society. The first case is that of Rajasthan which has reduced its poverty level by 10 per cent with a simple step of providing drugs free and basic diagnostics free of cost to the general public.
The next is Tamil Nadu, which provides 400 medicines free of cost in its government dispensaries even as the centre is still debating this issue. The third and the most important one is that of Kerala which has become the first state in the country to provide cancer treatment free of cost and provide all the BPL families with an insurance of Rs 2 lakhs. It is also a known fact that the WHO prescribed treatment for Tuberculosis which is available in all government hospitals for free, is still the best cure for the disease. In the end, for a country like India where all advanced technologies are available in the medical field, all it will take to revamp the system is a strong political will. Even when one thinks about the economic implications, the best possible solution is to invest more in the healthcare sector to give the coming generations a healthy and wealthy future. lekshmi@governancetoday.co.in
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Medicine
Putting lives before profit
Major pharma companies across the world argue that with low profits, they cannot mobilise resource for innovation
People protest against pharma companies who want to secure patents for life saving drugs
Ritika Bisht In 2005, World Trade Organization’s (WTO) agreement on TRIPS (Trade-Related Aspects of Intellectual Property Rights) came into force that allowed giving Big Pharma exclusive patents in all markets. This move granted pharma companies a monopoly to control (increase) the prices of certain drugs that made it impossible for people to have access to affordable life saving medicines. Pharma companies have argued that innovation in the field of medical science has to come by way of up scaling the investment which is possible by increasing the prices of certain drugs. Whatever the reason may be, the price increase of medicines would never be in welfare of general public who were thankful till now to get lowcost generic medicines. Since then, the move has initiated battle between big www.governancetoday.co.in
pharmaceutical companies and the government. When India started granting pharmaceutical patents in 2005, its law makers introduced public health safeguards that made it difficult for companies to get exclusive patents especially for life-saving drugs that are available to public at affordable prices, thus putting patient before profit. Earlier this year, India revoked a patent on German pharmaceutical company Boehringer Ingelheim’s lung drug Spiriva stating the drug was obvious and did not constitute invention under India’s patent laws. In 2013, Indian Supreme Court ruled out against Novartis when the former declared that small changes to its leukaemia drug Gleevec do not qualify for a new patent. Big pharma players have been adopting a case called ‘evergreening’ (making minor alterations to existing drugs) to secure new patent in India. In 2012 India’s Intellectual Property Appellate Board denied
patent to Roche Holding AG for a Hepatitis C drug (sold under the brand name Pegasys) stating that technology adopted for drug’s invention was ‘obvious’ and easily replicable. Similar story was reiterated in January 2015 when the Indian patent office denied patent for hepatitis C drug to US biotech firm Gilead Sciences Inc. on the grounds that the drug was novel but is similar to a known compound; moreover on comparing its efficacy over the previously known element the drug didn’t show any significant improvement on health. All these verdicts have exemplified that Indian patent officials have continued to take tough stance on what and who truly qualifies to secure patent protection. While big pharma players have criticized Indian government for narrowing their chances for innovation, general public all over the world have praised the country for not bowing down under pressure. December 2015 I 57
Global Scenario U.S and European patent laws easily grant patents to updated versions of the existing drugs regardless of whether they offer any major improvements. Evergreening may not yet have found its place in India but it sure has been success in other countries. Take for example the United States of America; country’s patent office has been granting monopoly protection easily for innovations that have not shown any major advances over already existing drugs. Novartis’ Gleevec costs patients USD 70,000 per year in the United States but same medicine costs just USD 2,500 in India. This happened as a result of rejecting Gleevec patent application. Keeping regulations within the interest of patients, India even issued compulsory license on Bayer’s Nexavar, a late-stage kidney and liver cancer treatment, thereby allowing local drug firms to produce generic version of the patented medicine. This resulted in bringing prices down from more than USD 5,500/month to USD 175. This year’s biggest news in the industry came when Turing Pharmaceuticals hikes the price of Daraprim, brand name for Pyrimethamine (prescribed for the treatment of malaria and toxoplasmosis) from USD 13.50 to USD 750, thus increasing the cost by more than 5,000 percent. Company’s founder Martin Shkreli acquired the rights to Daraprim and justified that the profit from this move would be invested in much needed research and development projects. How is this move justified when the price rise of the drug to this extent made it impossible for patients to afford it in first place? With the skyrocketing cost of the drug in the US it would be cheaper for an American national to travel to India and then purchase at least a year’s supply of the medicine. Under TRIPS Agreement on pharmaceutical patents, there are conditions where governments 58 I December 2015
can refuse to grant patents. When Indian government rejected patent rights to pharma companies, India broke no rules; in fact no other country had ever given it a thought before. After India’s move, countries like Indonesia, China and Philippines have amended their pharmaceutical patent laws as well to favor general public.
Innovation or Patients
We cannot ignore the fact that innovations in medical sciences are not borne out of thin air. New products rely on years of discoveries for which considerable amount of investment is required. Where few media reports have lauded Indian stance on restricting patents on drugs, others have criticized it. An international daily quoted Novartis spokesperson, “only one out of 10,000 experimental compounds in development will reach the market place – at a cost, according to one recent analysis, of $1bn (£642m) for each medicine approved. Thus each successful molecule that makes it as a drug needs to pay for the thousands of molecules that fail. Without patents, investment in R&D will plummet and people suffering from diseases without effective options will be left without hope. Simply put, without patents there will be no new medicines for untreated diseases and no new generics.” However, research companies cannot base this argument in context of just one country as profits should be accounted globally. According to an international daily, 80 percent of the patent applications (1995-2006) were recorded in six developed countries namely, the US, Japan, Germany, France, UK and Switzerland. Till now, pharmaceutical companies did not encounter any problems when it comes to securing exclusive patents for drugs in these six countries. Innovation is critical but lifesaving drugs were, are and will be for patients’ welfare. In developing countries like India majority of people do not have medical
insurance and thus pays for healthcare out of personal pockets. Companies cannot expect to hike prices in developing and underdeveloped countries and make medicines inaccessible for general public in the name of innovation. In this situation, India’s approach of raising the bar for pharma companies for securing patents is justified. Also, apart from the government it is an equal responsibility of drug producing and research companies to think about people battling deadly diseases as their only option to survive is low-cost generic medicines. However, pharmaceutical companies are steady on their stance to get patents in the country and even though at present they have not been considered, they cannot be ignored for long by Indian government.
Striking a Balance
In following its patent rules India has maintained compliance with international patent protection law. However, India’s tough stance on patents could cost country substantially in foreign investments which is not positive for pharmaceutical industry. Big companies have been denied patents till now; earlier this year, Delhi High Court ruled in favor of Novartis’ patent on the respiratory drug Onbrez. This verdict has proved that Big Pharma companies are here to stay to continue its battle in India to protect intellectual property. There is no denying in fact that research & development in medical science is of crucial importance but when life or death decision has to be made, patients’ welfare supersede innovation. Giving limited patent protection to western pharma companies and denying them patent for enhanced versions of patented medicines may be the only approach working for Indian government that can work both ways; for patients and pharmaceutical sector. ritika@governancetoday.co.in
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December 2015 I 59
good governance
Shipping ministry: The exceptional performer
Indian Ocean is a crucial part of global trade route
Vinit Goenka The NDA government has delivered on yet another front and this time the accomplishment was made in international shipping that had remained neglected during the previous regime. After a long interval, International Shipping regulators have revised the ‘highrisk area’ boundary in the Indian Ocean and have shifted it away from the India’s western coastline. Both the Shipping ministry and External Affairs ministry has played a pivotal role in this decision that is likely to boost country’s maritime trade many folds. The move would also potentially lower the insurance and operating costs of Indian shipping companies as new regulations will be brought to effect from December 1st. The previous boundaries were in fact 60 I December 2015
covering almost entire western coastline of India bringing it under the limits of the High Risk Area and it had triggered a 300-fold jump in ship insurance costs, which gave a rise to high transaction cost of commodities shipped to Indian ports. As a matter of fact, about 90 per cent by volume and 70 per cent by value of the country’s international trade takes place through ocean transportation. The country’s major ports play a key role in facilitating external trade, which accounts for 40 per cent of country’s Gross Domestic Product (GDP). Since NDA has taken over the regime and Nitin Gadkari has assumed the role of union Shipping minister, the port sector has seen a phenomenal growth. Twelve of our major ports and three state-run companies have turned profitable
and within this financial year, the Shipping industry will see a profit of around Rs 4,500 crore. Three PSUs, Dredging Corporation of India, SCI and Cochin Ship Yard are likely to report a profit of Rs 850 crore, the biggest chunk of the net surplus. This impressive balance sheet is a result of collective efforts put in by Indian shipping regulators and defence forces. Both of these agencies were lobbying to redraw the eastern limit of the High Risk Area since 2012 as piracy in international waters has dropped substantially in recent years. It was at its lowest in 2014 for last twelve years. The High Risk Area was extended in 2010 beyond the earlier boundary of 65 degrees East longitude to up to 78 degrees East, stretching right up to the territorial www.governancetoday.co.in
Most of India’s international trade is through ports
waters on India’s western shores. Consequently, London’s joint war committee (JWC), which assesses insurance risks, extended the war zone in December 2010 about 900 miles east as the hijacking range grew. The decision was taken after pirate attacks started taking place further from the Somali coast and closer to India than in the past as pirates deployed long-range ships to attack and hold ships for ransom. The expansion of the area effectively brought the whole of the Indian Ocean, almost up to the coast of India, into a so-called exclusion zone, raising shipping costs. The extension meant that this area was excluded from the annual war risk cover, and underwriters demanded additional premiums from ship owners to provide a cover for the area. A ship with appropriate war risk insurance is covered for risks encountered throughout the course www.governancetoday.co.in
of its normal operations. In addition to deployment of Indian naval ships in the Gulf of Aden since October 2008 for anti-piracy patrols, robust action by the Indian Navy and Indian Coast Guard led to the arrest of 120 pirates from four pirate ships between January 2011 and March 2011. Affirmative action and increased surveillance contributed towards the decline of piracy incidents in the East Arabian Sea, with the last pirate activity in the region reported in March 2012. With the revision of the High Risk Area, some of India’s maritime security concerns such as floating armouries and proliferation of private security are also likely to be addressed. In addition, Indian ship owners are likely to be benefitted significantly on the account of savings on insurance and associated operating costs. Indian ship owners had paid around $125 million to $130 million in addition to the existing war risk
premium during the last financial year. To be sure, some of the portion of this additional war risk premium will remain, but substantial portion of the premium will go way with the downwards reduction. The reorganizing of the boundary will also help avoiding the clash of fishermen and merchant vessels as fishermen can now go deeper into the seas. All types of vessels were hugging to the Indian coast owing to expansion of this area. With the latest downwards division, it will be easy for defence forces to check attacks from terrorist via coastal route as there will be lesser congestion after December with revised boundaries coming into play.
(The writer is a Member of IT Task Force in the Ministries of Shipping, Road Transport & Highways, and former National Co-Convener for the BJP’s IT Cell)
December 2015 I 61
policy
Revolution on the anvil Will the new draft civil aviation policy see the light of day? Ramesh Kumar Raja After telecommunications and internet, India is on the threshold of another revolution. This time, it’s in the sky. Thanks to the Draft National Civil Aviation Policy 2015 released recently by the ministry of civil aviation – if all goes well – flying is going to be affordable for the masses. The policy focuses on 16 critical areas of the Indian civil aviation industry ranging from safety to regional connectivity, bilateral traffic rights, code-sharing, route dispersal guidelines, fiscal support, helicopters, scheduled commercial agreement and maintenance, repair and overhaul (MRO) operations. Many of the rules date back to 1930s. The government’s proposals in NCAP 2015, have been placed in the public domain, as it looks for feedback from various stakeholders. The final policy will be unveiled after adding in the recommendations, if any, from stakeholders and obtaining the needed approvals. Since air travel in India is mostly confined to a tiny section of the population that lives in cities, putting it out of the reach of hundreds of millions, the new draft aviation policy gains weight from the fact that “if every Indian in the middle class income bracket takes just one flight per annum, it would result in a sale of 300 million tickets, a big jump from the 70 million (7 crore) domestic air tickets sold in financial year 2014-15.” As per the draft policy, this will be possible if the air fare, especially on the regional routes is brought down to an affordable level. The reduction in costs will require concessions by the stakeholders, primarily the central and state governments and airports. According to NCAP 2015, the government’s vision is to create an ecosystem to enable 30 crore 62 I December 2015
domestic ticketing by 2022 and 50 crore by 2027. Similarly, to increase international ticketing to 20 crore by 2027. The draft policy states, “India has the potential to be among the global top three nations in terms of domestic and international passenger traffic. It has an ideal geographic location between the eastern and western hemisphere; a 300 millionstrong middle class and a rapidly growing economy. Despite these advantages, the Indian aviation sector has not witnessed the level of growth it should have and at present, it is ranked 10th in the world.” The government proposes to develop no-frills airports at a cost not exceeding Rs 50 crore, in an endeavour to strengthen regional air connectivity. At present, as cited in the draft, only 75 of the 476 airstrips/airports have scheduled operations. Besides, based on a regional connectivity scheme (RCS), which will come into effect from April 1, 2016, the policy speaks of capping regional air fares to Rs 2,500 per passenger for a one hour flight. The funds for the regional connectivity scheme is to be raised by levying a two per cent cess on airline tickets on major routes. Over the much-argued 5/20 rule, which allows Indian carriers to fly abroad after five years of domestic operations and having a fleet of 20 aircraft, the NCAP 2015 has made three recommendations. Besides proposing to abolish the rule, it also proposes to introduce a concept of Domestic Flying Credits based on which Indian carriers will be allowed to fly overseas. Further, the new draft policy also considers an Open Sky aviation policy with SAARC countries and those countries beyond a radius of 5,000 kilometres from the national capital. A footnote in this section states that foreign direct investment
in airlines would increase from 49 per cent to above 50 per cent, “if the government decides to go in for open skies for countries lying within 5,000 km radius”. The business of maintenance, repair and overhaul (MRO) is another area that would get a boost if the policy is brought into action. It may be noted that Indian carriers spend nearly Rs 5,000 crore in MRO activities of which 90 per cent is spent outside the country in Sri Lanka, Singapore, Malaysia, and the UAE. Given our technology base, the government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines. In order to encourage this, MRO facilities will be relieved from service tax, states the draft policy. The development of this sector has a multiplier effect on the economy. As per a study conducted by International Civil Aviation Organisation (ICAO), the output multiplier and employment multiplier are 3.25 and 6.10 respectively. The aim of the government is to provide an ecosystem and a level playing field to various aviation sub-sectors, i.e. airlines, airports, cargo, MRO services, general aviation, aerospace manufacturing, skill development, etc. but for that, the systems and processes which affect this sector will need to be simplified and made more transparent with greater use of technology without compromising on safety and security. The growth in aviation will create a larger multiplier effect in terms of investments, tourism and employment generation, especially for unskilled and semi-skilled worker. Even though private airlines have sought more time to state their views because the proposals may have far reaching ramifications on the sector, the draft civil aviation policy received mixed www.governancetoday.co.in
Key highlights of NCAP 2015 Vision: To create an eco-system to enable 30 crore domestic ticketing by 2022 and 50 crore by 2027. Similarly, international ticketing to increase to 20 crore by 2027. Mission: Provide safe, secure, affordable and sustainable air travel with access to various parts of India and the world. Objectives: Ensure safe, secure and sustainable aviation industry through use of technology and effective monitoring Enhance regional connectivity through fiscal support and infrastructure development Enhance ease of doing business through deregulation, simplified procedures and e-governance Promote the entire aviation sector chain: cargo, MRO, general aviation, aerospace manufacturing and skill development. response from the industry with most of the airlines describing it as “progressive” even as lack of clarity on the fate of 5/20 norm has come under criticism from some quarters. According to SpiceJet CMD Ajay Singh, the draft policy has covered a lot of ground and an attempt is being made to reduce taxes. IndiGo president Aditya Ghosh feels the policy is broadly progressive and setting of low cost airports would help bring more cost efficiency in the aviation sector. AirAsia India CEO and managing director Mittu Chandilya, on the other hand, finds it surprising to see the lack of clarity and progress on 5/20 norm. However, he believes regional connectivity and small town airports would help airlines to geographically increase the footprint. Federation of Indian Airlines supports the continuation of 5/20 norm and says route dispersal guidelines should not be fixed as they are based on market dynamics. Centre for Asia Pacific Aviation, a think tank, is of the view that the draft policy signals a positive intent to provide a direction and structural lift to the sector. “The draft policy reflects that the government is serious about delivering genuine change and meaningful outcomes,” says CAPA India head Kapil Kaul, www.governancetoday.co.in
but he also added that the draft does not mention about the future of Air India. “The government’s ownership of the national carrier negatively influences policy decisions and has cost the Indian tax payer billions of dollars. Clarity on what the government plans to do has a massive bearing in the industry,” he states. As per Kaul, there should have been more emphasis on addressing the negative fiscal environment which airlines face such as sales tax on ATF, service tax on fares, airports charges and withholding tax on aircraft leases. Business Aircraft Operators Association, an industry federation working for business aircraft operators in India has a divergent opinion in this regard. According to BAOA president Jayant Nadkarni, it is disappointing to see that the policy has completely ignored the interests of business and general aviation in India, which forms an important part of the industry. The policy, as per Nadkarni, has also overlooked the exorbitant and irrational taxation on import of small aircraft, which has been one of the major reasons for the delay of growth of this sector. Industry body Ficci has welcomed the draft policy, saying it has laid down the long-term
roadmap for developing India as the third largest aviation market. As per Ficci, “It is encouraging that the government is planning to coordinate with all the stakeholders to provide greater regulatory certainty under the PPP mode. Also commendable is the proposal for exempting MRO, cargo, ground handling players from all charges, other than a reasonable lease rental at all the future airport projects in the country. These are critical to the growth of the Indian aviation sector.” The industry grouping noted that regional connectivity scheme would contribute to the growth of remote areas and in turn have positive implications for overall growth of the economy. CII and Assocham, the two other prominent industry associations share the same sort of view. While CII says the draft policy has rightly addressed the key policy challenges in the sector with rationalisation of jet fuel cost, thrust on regional connectivity, liberalisation in open skies regime, promotion of air cargo, maintenance, repair and operations (MRO) through fiscal and regulatory concessions, Assocham believes proposals in the draft civil aviation policy would surely help in expansion of the sector. Noting that sincere efforts must be made to build a consensus among the Centre and the states on fiscal incentives being proposed in the policy, Assocham says VAT concession being proposed should be in sync with the GST regime. Although the new draft policy offers a mixed bag of opportunities for the airlines, the consumer will hugely gain if the new commuter airlines takes off and connect the smaller cities and open sky policies bring in new competition from abroad. This draft, as per experts, is a major improvement on the previous drafts and has a comprehensive coverage. But how much of it will be converted into final policy and then implemented is anyone’s guess. ramesh@governancetoday.co.in
December 2015 I 63
64 I December 2015
www.governancetoday.co.in
Slush: the annual
Start ups
start up jamboree The rock concert like event brings together techpreneurs and investors
Anand Mishra The biggest spinoff of the IT and communication technology over last decade has been the ease with which ideas can germinate and fructify to commercial success. It is this advantage that has allowed so many start-ups to successfully make money and has increased the charm of testing challenging, new ideas. Slush celebrates this empowerment of ideas and brings the best of minds in start-up space every year to interact among themselves, with investors and with enthusiasts many of whom are at various stages of testing their own ideas. It is a not-for-profit event and is driven by a community of students, techies and volunteers. The annual event, held in Helsinki, Finland, started as a platform to support European tech entrepreneurs develop into full-fledged businesses. From a humble beginning in which 250 odd participants interacted in 2008, has come a long way and today attracts best and brightest of tech ideas from around the world, in areas as diverse as medical technology to cloud computing. This year, it clocked close to 1,700 start-ups from 76 countries. For attendees, display of futuristic technologies like virtual reality were a big hit. Organized in a postmodern style set up which resembled like a hanger and lit by laser lights, the www.governancetoday.co.in
event was attended by participants like PlugSurfing, Velmenni, Big Data Solutions, RelevancyData, IMGNATION Studios etc. It also featured eight Indian startups including Friends Drawer, Digimafia Media Private Limited, First Quadrant Solutions Private Limited and Fifth Sense Studios. Further the event featured investor match making for startups and a
Sami Heiskanen/ Slush Media
VR, Gaming & Edutech, and Lifesciences segments. The winner, CareMonkey from Australia, pocketed an equity investment prize of â‚Ź650,000 by Evli Bank, FiBAN business angels and a group of private investors. Events like Slush serve a crucial purpose of bringing ideas onto the stage where they are vetted by potential investors and Jussi Ratilainen/ Slush Media
The Slush 100 winner got a hefty 650,000 Euro prize in equity investment
science pitching competition, an addition this year. The major event was the selection of the winner of Slush 100, in which 100 start-ups were handpicked by top European investors, in Hardware & IoT, Ecommerce & Financial Services, B2B Software & Analytics,
allow tech entrepreneurs to benefit from interacting with likeminded inventors and innovators. As India moves into top gear of start-up culture, it would be a commendable idea to have a Slush edition of India which would provide a further impetus to the start-up ecosystem. December 2015 I 65
interview
Indian startup scene picking up like never before
‘Slush 2015’ proved the grandest edition of the event which has been improving in its reach, profile of participants and impact. To find out more about the philosophy and the organization of Slush, Anand Mishara, Editor and Rajesh Mehta, Consulting Editor, ‘Governance Today,’ spoke to Riku Makela, CEO of Slush. Edied excerpts:
What is Slush and how did this idea generate? How has the event evolved over last few years?
Slush was started in 2008 to stand apart from your typical startup events. Back in the mid2000’s, most of the European tech clusters aspired to be the “Silicon Valley of X”. But if you want to be Silicon Valley, the best you’ll ever be is a second-rate copy. So the idea with Slush was to do something different; to make European tech stand out in a different way. The event is not-for-profit, aiming to help the next generation of entrepreneurs build global businesses out of Europe. Because of the non-profit nature, we believe that we can more effectively help the startups regardless of the situation – and also during other times of the year when we are not organizing the events! The major growth of Slush has taken place since 2011. That was the year that the global ambition level was set. The event doubled in size from 2011 through to 2014. In 2015, we decided to maintain size in order to deliver more value and meaningful encounters for the entrepreneurs in attendance. After this year’s event, we feel this was a good choice. Slush 2015
66 I December 2015
Riku Makela CEO, Slush
drew together 15,621 attendees from 100 countries including 1,681 startups, 777 investors and 725 journalists.
You have introduced Science Pitching Competition this year. What is the rationale?
The commercialization of research has always been a hot debate globally. We feel that by introducing research-verified concepts, the scientists or researchers are more effectively able to structure business teams around them. We have worked with several universities on this topic and tried to identify a good way of doing this. The Science Pitching Competition was also a huge hit amongst the audience, so we’re enthusiastic about making it happen again in 2016.
Could you share with our readers about the start-ups profile in the event? What benefits participants derive from this global event?
Our basic concept is putting startups together with angel
investors, VCs and journalists. So probably the most typical forms of participation are being active via the matchmaking tool in order to meet investors, and launching products and connecting to international media for coverage. Also B2B businesses are looking to engage with clients (there are over 1,000 larger tech organizations at Slush), and B2C businesses typically demo their products to the wider audience. The group of 1,700 startups consists of a very broad range of different technologies and industries. The largest sectors represented were e-commerce & online marketplaces, analytics, big data & AI, and gaming with over 150 startups per each category. The overall technology trends visible in the participant group are mobile in general, and more recently IoT.
How do you see the startup segment changing globally over the next half decade period?
The geographies of where billion-dollar success stories come from will fragment further. It used to be Silicon Valley only, then Northern Europe and China started rising. Currently these regions account for ~85% of new billion-dollar tech businesses. China will probably produce successful technology with exponential growth in numbers, but we’ll see countries like India and Indonesia start producing globally-recognized success stories very quickly. From a European point of view, this is definitely the best time to be a European tech entrepreneur, so what we’re expecting to see in the upcoming years is a growing parade of great
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businesses, of which some will become globally dominant leaders in the $10-150B valuation range.
What are the unique takeaways from Slush this year?
This year we focused very much on European technology, Europe’s success stories, and showcasing these to the rest of the world. The key takeaway is that this definitely is the best time in history to be a European tech entrepreneur. Geography no longer matters; great companies can come from anywhere. It’s easier than ever to start a company, put its digital infrastructure in place, and reach a global audience via the available digital distribution channels. I think showcasing these megatrends was the key thing; we have launched a report on euro tech together with the leading VC firm Atomico which is available at http://atomico.slush.org. Next year, we’ll of course still maintain a bit of the focus on our home base of Europe, but we’ll continue to expand our horizons to cover even more geographies, and to bring more and more value to participants from cross the world.
Could you share your experience from Slush in Japan last spring which we hear was quite successful? Are you also thinking of a Slush event in India?
Slush in Japan – called Slush Asia – was a really great success. One of the key reasons Slush was successful there was timing. The culture toward entrepreneurship is not very established in Japan, and thus there was a really great spot to bring over a community-driven initiative that could help define the Japanese entrepreneurship scene for years to come. I believe that the event in Japan will be an even bigger success in 2016.
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At the ‘Slush 2015’ event
As for Slush in India, we have had several discussions and are still engaged in them. We’ve gotten more and more acquainted, and we have some local knowledge as we did small get-togethers in Bangalore in 2013 and 2014. The tech scene in India is definitely picking up, so the question that we’re thinking about is if there’s room for us to come in through the community-building aspect that we are so fond of. We’ll see how this develops throughout 2016.
Indian start-ups have started to get attention and financing of late. How do you see start-up ecosystem developing over coming years?
The Indian startup scene is definitely picking up like never before. While there were some rare successes in the late 90’s out of Delhi especially, what we’re seeing now is a completely new structured approach to entrepreneurship that will probably reap massive results in the next 5 or 10 years. Most of the world’s leading VCs are becoming active in India, which of course says a lot about the startup scene. I would expect there to be a large group of global category leaders that emerge from India in the upcoming years. The big
Sami Heiskanen/ Slush Media
question for successful Indian companies is the same as for Chinese ones: because the domestic market is so large, one can build billion-dollar businesses without internationalizing. Will these entrepreneurs be hungry enough to take on a global market even though the home base is so vast? Time will tell.
You had mentioned that Finnish Govt. should create new visas for startups and entrepreneurs so that they can attract international talent. Please elaborate on this? This is not really my own opinion, it’s something I’ve picked up from talking to hundreds of Finnish entrepreneurs throughout the year. About a dozen European countries already have a special visa for top-end tech talent or entrepreneurs. This makes it easier to attract scarce talent resources or entrepreneurs that are coming to Europe from outside of the EU. For them, and for their families, the normal visa process is often unnecessarily heavy. I think most entrepreneurs in Europe feel that a special visa category would help them attract the best people on a global scale.
December 2015 I 67
policy
The burden of pay hike Are pay commissions doles best use of govt’s resources? Praveen Raman The much anticipated report of the Seventh Pay Commission is out. The report, submitted to the Union Finance Minister Arun Jaitley on November 20, by the commission chief Justice AK Mathur, has recommended an overall increase of 23.55 per cent in pay, allowances, and pension for government employees. Within this, the commission’s report recommends a 16 per cent increase in basic pay, a 63 per cent increase in allowances and a 24 per cent hike in pension. The recommendations are to come into force on January 1, 2016. This recommendation will impact 47 lakh employees and 52 lakh pensioners. The total monetary impact on the central government would be a whopping Rs 1.02 lakh crore. Around Rs 74,000 crore would be the impact on the Union Budget and Rs 28,000 crore on the Railway Budget. The impact of the recommendations amounts to 0.6 per cent of GDP. It is because of regular pay revision and stability, the government jobs are much sought after in our country. When more than 2.3 million people rushed to apply for just 368 positions for the job of a peon in the Uttar Pradesh government recently, including some with professional qualifications, it reinforced the idea that how coveted the government service are. While it is correct that the economy has not been able to generate enough quality jobs for a growing workforce, it is also true that the government offers much higher wages, as well as perks, that are not available in most cases in the private sector. The rush to apply for government jobs is thus more a reflection of a massive wage premium at the lower levels of the labour market than sluggish job creation. 68 I December 2015
No doubt the commission’s recommendation has brought joy to the government employees and pensioners, but it may be a time for the rest of us to look this joy. Going back a bit, the Fourteenth Finance Commission estimates had said that the cost of the Sixth Pay Commission was over Rs 90,000 crore annually to the national exchequer, since pay and allowances of Union government employees more than doubled between 2007-08 and 2011-12. Now, compare this dole to the estimates in the economic survey for the same year, about Rs 70,000 crore each for food subsidy, fertilizer and petroleum subsidy. Simply put, the additional Central government expenditure due to the implementation of the Sixth Pay Commission was over 40 per cent of the major subsidies. If we take into account the costs to the State governments, the tab for Sixth Pay Commission largesse is probably equivalent to all the subsidies provided by the Central government taken together. As the recommendation came from another pay commissionmandated salary hike, it is important to look whether this make an economic sense. It is not only the question whether the government can afford it but if it is the best use of government resources. Government employees receive Dearness Allowance (DA) annually to compensate for inflation. They also receive an annual performance appraisal for promotions, which brings with it salary increases. So the decadal salary increases under the Central Pay Commission (CPC) are meant to address inequities in salaries across different parts of the government, across ranks as well as between the public sector and private sector. It is the latter that has provided the greatest justification for salary increases granted under CPC in the past.
The big buck salaries of the premier management institutes of India, like IIMs and IITs, funnel a sense of discontent among public sector employees since it is hard to imagine any 25-yearold government servant receiving a package of Rs 40 lakh per annum. This forms basis of several observations made by the previous pay commissions. First, it noted that the contention of vast disparities between private sector and government employees was not borne out by data. The CPC found that compensation to Group C and D employees in government was higher than that in the private sector; for Group B it was similar and only for Group A was it lower. Group A employees form less than 5 per cent of the total Central government workforce; Group C and D are about 90 per cent. Second, it noted that a government job offers many other benefits not available in the private sector and the fear of flight away from public service towards the private sector is overblown. Even with these observations, the recommendations of the last CPC led to substantial increases in the salary and allowance of all public servants, both central and states. A comparison of incomes between private sector employees and government employees using data from India Human Development Surveys (IHDS) of 2004-05 and 2011-12 is instructive in understanding the consequences of the last CPC. The graphic shows monthly salaries for men aged 2559 in 2011-12. Many women work part time as anganwadi workers and ASHA workers and hence are excluded from this comparison, but their inclusion will not change the fundamental results. The results show that at every single level of education, government workers are paid more than private sector workers www.governancetoday.co.in
LARGESSE FROM SIXTH PAY COMMISSION Monthly salaries in government and private sector for individuals aged 25-59 before and after the implementation of 6th Pay Commission (in 2011-12) PrivateGovt Ratio
2004-05
0-4 STD
4,063
Private Sector 9,355
43%
Government
2011-12
4,641
39%
* SECONDARY/ SOME COLLEGE ** GRADUATE/ DIPLOMA
Secondary* 10-11 STD
` TAKE HOME INCOMES AFTER ALL DEDUCTIONS FIGURES IN RUPEES
5,099
53%
9,692 5,452
42%
12.877
Graduate**
`
5-9 STD
12,011
6,244
50%
12,378 7,034
45%
15,757 7,158
56%
12,784 7,993
47%
17,104 10,617
62%
17,072 12,412 21,903
57%
Source: The Hindu
and more importantly, the public service advantage has increased rather than decreased after the implementation of the last pay commission recommendations. A driver in government service earns far more than one in private service, and so does an engineer. This comparison does not include the other benefits government service provides including employees provident fund contributions, housing benefits, health insurance and, frequently, admission of children to coveted Kendriya Vidyalayas. One might say that the problem is not across categories, but is concentrated in highly skilled positions. Individuals who are highly skilled may be more likely to choose the private sector. Here only the Union Public Service Commission can tell us www.governancetoday.co.in
if the qualification of the entering cohort of the coveted Indian Administrative Service officers is declining, but at a slightly lower stratospheric level, we see no such evidence. The IHDS shows that among college graduates with a first class degree, government service still seems to be preferred. In 2004-05, among the male college graduates employed in public service, 37 per cent had a first division; this proportion had increased to 39 per cent by 2011-12. This is not to say that skill upgradation is not taking place in the private sector, where the proportion of first class degree holders among graduates has increased from 28 per cent to 35 per cent, but these figures do not suggest that government services are suffering on an average; just
that the more qualified individuals are seeking salaried work and moving away from farming and small businesses benefitting both government service and the private sector. In this situation, there is surely a careful and incisive analysis required to justify the massive rise in the government officials’ salaries through 7th pay commission. It also should act as the process of deciding further rounds of pay hikes. Simultaneously, the government needs to assess the massive chasm that its actions open between private sector which provides most of the jobs, and the government sector which provides a very small fraction of jobs but still manages to perhaps push up inflation. praveen@governancetoday.co.in
December 2015 I 69
Event Report
‘Governance Today’ successfully organizes Smart City-Smarter West Bengal Summit Top Government leaders from West Bengal and IT corporate discuss Smart City plans for the state
Governance Today successfully organized Smart City-Smarter West Bengal, on November 27th, 2015 in association with Urban Development Department, Government of West Bengal at Park Hotel, Kolkata. The summit aimed to bring together state departments and private players on a single platform to discuss vision of realizing the smart city dream. The summit was attended by Debashis Sen, IAS, Principal Secretary, Urban Development Department (Government of West Bengal), Manoj Pant, IAS, Principal Secretary, Department of Land & Land Reforms (Government of West Bengal) Pawan Kadyan, IAS, Municipal Commissioner, Bidhannagar, Upender Jit Singh, Managing Director, WEBEL (Government of West Bengal), and other state government dignitaries. During the inaugural session, Debashis Sen briefed attendees about the opportunities and way ahead for smart city project in the state. Manoj Pant followed and emphasized on governance and leadership for successful smart city planning. Amod Kanth, former commissioner of police, explained about smart policing and how technology can ensure safety and security to masses. Also present at the summit were D. Biswas,
CEO, New Town Kolkata Development Authority, Debaprasad Mandal, Mayor, Haldia Municipality, J K Tiwari, Mayor, Asansol Municipal Corporation, Ram Bhajan Mahate, Vice Chairman, Siliguri Municipal Corporation, Verghese Kunjachan, Assistant Commissioner of Police, Kolkata. The summit was widely attended by corporates as well as state government officials. Notable corporate leaders present included, KP Saha, Managing Director, Senrysa, Ashwin Dias, General Manager, UBER, Dr. K.V. Krishnan, VP-IT Services, Mindteck, Basab Roychowdhury Specialist (Technology Consulting), HP Enterprise, Sandip Datta, Analytics HeadIndustrial Sector, IBM, Rajat Chakravarty, Director – Sales Consulting (India Presales), Oracle and Nitin Jain, VP & Head Strategy, Shapoorji Pallonji. During the summit, leaders held discussion on smart city policy in India, challenges in developing a smart city, importance of enabling smart mobility, smart security, smart transport, smart technology and GIS in a smart city. Smart City, Smarter West Bengal summit served as an excellent platform for both government and IT leaders to interact with each other and formulate plans that would bring the state closer to achieve the smart city vision.
Unveiling of magazine during the inaugural session
70 I December 2015
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Debashis Sen, Principal Secretary, UDD (Government of West Bengal)
Pawan Kadyan, IAS, Municipal Commissioner, Bidhannagar
Amod Kanth, Former Commissioner of Police, addresses during inaugural session
Delegates at the summit
KP Saha, MD, Senrysa
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Manoj Pant, IAS, PS, Dept. of Land Reforms (Government of WB)
Upender Jit Singh, Managing Director, WEBEL (Government of West Bengal)
Ashwin Dias, GM-East India, UBER
December 2015 I 71
interview
The nearest approach to Sanskrit in Europe is Lithuanian
Not many in India are aware of the close historical and cultural connection that India shares with Lithuania, a connection that goes back many centuries. While the two countries have started afresh to cooperate on economic and social levels in last two decades, there is immense scope for people to people and cultural cooperation between the two countries. In a discussion with Rajesh Mehta, Consulting Editor, ‘Governance Today,’ Mr. Laimonas Talat-Kelpša, Ambassador of the Republic of Lithuania, shared his opinion on various aspects of the historical cultural relations between the two countries and how these can be strengthened further. Edited excerpts:
How are India & Lithuania connected culturally?
Laimonas Talat-Kelpša
Ambassador of the Republic of Lithuania to India 72 I December 2015
There is common belief in Lithuania that our national language, Lithuanian, originates from Sanskrit. This connection, first addressed by European scholars in the 19th century, had become a foundation of Lithuanian National Revival Movement in the late 19th century. Ever since we’ve been taught that Lithuanian is the closest surviving sister of Sanskrit in Europe. More than eight generations of Lithuanians have been raised with this idea in their mind. It has become part and parcel of our national mythology, and serves as our connection to India, past and present. Our first documented contact with India happened 390 years ago, on 22 August 1625, when a Lithuanian missionary Andrius Rudamina landed in Goa. To celebrate this occasion, a memorial stone was unveiled in Old Goa this summer. This connection with India via the Catholic Church has remained strong, with Lithuanian priests serving as local bishops and www.governancetoday.co.in
legates throughout the 18th and 19th centuries. Outside the ecclesial realm, much of our bilateral history is associated with the name ofan adventurous traveler and explorer AntanasPoška, who came to India on a motor bike in 1931and stayed in the country for several years. At that time Lithuania was already an independent republic, and India was still struggling for its freedom. Poška was deeply impressed by the Gandhian principles of nonviolent struggle and conveyed his admiration, on behalf of all Lithuanians, to Gandhiji himself, when the two met in Bombay in 1931. Poška’svast legacy of academic research into India and South Asia still serves as an authoritative source to presentday scholars. In January 2015, the University of Calcutta awarded him with Honoris Causa post mortem, thus redeeming a longstanding debt towards this great personality.
How are the Indian language Sanskrit and Lithuanian closely related?
To cut this long story short, I would just provide two eminent quotes. First,“Anyone who wants to hear the old IndoEuropean should go and listen to a Lithuanian farmer,” said a renowned French linguist Antoine Meillet in the end of the 19th century. And the second,“The nearest approach to Sanskrit in Europe is made by the Lithuanian language,” by Jawaharlal Nehru in his landmark book “The Discovery of India.” The linguistic proximity of Sanskrit and Lithuanian is a well-established fact. In my pocket, I already have a list of more than 50 words which I have gathered from my daily encounters with Indians. For example: dev – dievas (god), agni – ugnis (fire), sapnā – sapnas (dream), śakha – šaka (branch), rath – ratai (chariot) and many others. These words come from
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different walks of life, and cover various subjects from religion and abstract things to numbers and animals and household items. And take note that we only speak of the recognizable words in modern Hindi! The comparative analysis of Lithuanian and Classical Sanskrit would produce a much longer list of commonalities, and not only in vocabularies but also in grammatical structures. In fact, the Lithuanian Language Institute is already working on a small dictionary which would reveal the striking resemblance of the two languages.
Of late, there has been a significant increase in Indian Students going to Lithuania. How do you explain this?
The growing number of Indian students in Lithuania is one of the many success stories we willingly share with our Indian counterparts. This number has jumped from 57 students in 2012 to more than 600 in 2015. Lithuania has a long-standing tradition of good quality education. And because of demographic reasons the demand for students has been constantly growing. Our universities have expanded the range of courses offered in English, while the fees remain very competitive. For example, in England the average tuition fee would be around 20,000 pounds per year while in Lithuania it would stand at 3,0004,000 euros per year. The living cost is also significantly less. I believe these are the reasons why Lithuania has become such a popular destination for international students.
Could you tell us about the Indian Community in Lithuania?
The Indian community in Lithuania is not particularly large. Till the recent arrival of Indian students it was easily counted on the fingers of one hand. However,
those who have stayed are usually very successful people. For example, Mr. Rajinder Chaudhary, the owner of legendary “Indian Sue’s Raja” restaurant in Vilnius, has been named as “an Indian legend in Lithuania” by one Indian online newspaper. Indorama Ventures Ltd., India’s largest investor in the Baltic States, is running a successful manufacturing facility in the Klaipėda Free Economic Zone. We also see a growing number of IT specialists hired by Lithuanian banks, although they come to Lithuania mostly on a temporary basis.
What are the key areas of cooperation between two countries?Could you please elaborate the potential in Agriculture & Tourism?
Although we have a historical connection through Sanskrit and elsewhere, our bilateral relations in modern terms are rather new. The diplomatic relations were established in 1992, and Lithuanian Embassy in New Delhi was opened in 2008. Hence, this chapter still has many pages to be filled in. But a few success stories have already emerged and are worth mentioning. For example, the exports of lasers and laser-related technologies amounted to more than 20 per cent of Lithuania’s export to India in 2014. Imports of Indian pharmaceuticals to Lithuania stand at about 12 per cent. Thus, our trade is focused predominately on high-value added commodities. Second, a very successful cooperation has evolved in the area of student exchange. Along with the rapidly growing number of Indian students going to Lithuanian universities, we also have more than 100 Lithuanians who have benefited from the India-sponsored ITEC program. The interest to cooperate in knowledge-based areas is rather obvious and December 2015 I 73
must be promoted. Agriculture and Tourism are now emerging as new important additions to our bilateral partnership. Shri Mohanbhai Kundariya, Minister of State Agriculture, has just recently visited Lithuania where he had a series of very productive talks with his Lithuanian counterparts. Lithuania, a country the size of Himachal Pradesh with the population of 3 million, is famous not only for its highly efficient agricultural sector, with its agricultural exports reaching EUR 3bn in 2014, but also for its cultures and technologies, especially in the dairy field. A Memorandum of Understanding in Agriculture is being finalized and soon will be ready for signature. As for tourism, Lithuania and its capital Vilnius has been nominated in all major categories recently: a best-value city for budget travelers by European Backpackers Index, a numberthree country to visit by Lonely Planet, a must-see by the Placesto-See-in-Your-Lifetime Index etc. We believe that in a couple of years or so, an increasingly larger number of Indians will discover Lithuania as an attractive tourist destination.
It is believed that Mahatma Gandhi is quite popular in Lithuania? Please let us know more about it.
The Gandhian principles of non-violence were at the heart of Lithuania’s successful independence campaign against Soviet Union in 1987-1991. However, our connection with the great leader of India is also more intimate, thanks to Gandhi’s closest associate, a Jewish architect Hermann Kallenbach, who was born in Lithuania. Gandhi used to call Kallenbach his “soulmate.” To commemorate their friendship, and also to promote the Indo-Lithuanian relations, a monument was
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unveiled in Rusnė, Kallenbach’s birthplace, this October. The monument was sponsored by another distinguished Indian and Lithuanian at the same time, Dr. Yusuf K. Hamied, the owner of the pharmaceutical giant Cipla, who was also born in Vilnius in 1936.
Lithuania wants India to open an Embassy in Lithuania. Have any progress been made so far?
The idea of having an Indian diplomatic mission in Vilnius is not a romantic whim. It is part of a deal between India and Lithuania, concluded in 2005, when our countries agreed to support each other in promoting the UN Reform Agenda and also strengthen bilateral ties. “We remain committed to open a Resident Mission in Vilnius and invite you to do the same,” reads the letter of India’s External Affairs Minister K. Natwar Singh, issued on that occasion. Lithuania opened its embassy in New Delhi in 2008. The Indian part of the agreement, we hope, will also be delivered.
In your opinion what is the greatest obstacle preventing even deeper relations between the two countries? How it is being addressed?
The lack of knowledge is perhaps the greatest obstacle. That Lithuania is still unknown in India is only part of the problem. Lithuanians too have an incomplete image of India. The time when India spoke Classical Sanskrit is long gone. Neither is India a country which we saw in Raj Kapoor films. The picture of modern India, with its immense complexity and great opportunities, is often missing in Lithuanian daily discourse. The opening of an Indian Embassy in Vilnius would certainly help in closing this gap.
Could you share any success stories of Indian students that have studied in your country? Where do they tend to continue their careers after graduation: in Lithuania, India, other EU countries?
A student from South India, Emil William Thattakath, was ranked among the top-10 best graduates of Kaunas Technology University in 2014 and received his graduation diploma from President Dalia Grybauskaitė. Another KTU graduate, Najeeb Hasan, used his studies in Lithuania as a stepping stone to pursue his career in Budapest and later in Vienna. I believe the number of such success stories will only grow as the number of Indian students in Lithuania will keep increasing.
Lithuania has approved tax incentives for investments in film production? Could you please throw more light in it?
That’s a very good question. Yes, Lithuania provides tax incentives to the foreign production companies who choose to shoot in Lithuania. Up to 20 per cent of production costs incurred in Lithuania can be reimbursed, provided that the foreign production house meets certain criteria. This summer, Irrfan Khan spent a few weeks in Vilnius filming a Japanese TV miniseries “The Tokyo Trials”, and he highly praised the shooting conditions in Lithuania. He was also impressed by the work of the local partners. So time is high for the other Bollywood companies to follow the suit!
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