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Rethinking India’s Policy Making Apparatus

2 I June 2016

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16 Rethinking India’s Policy Making Apparatus

If you look at the major schemes or policies of the government, central or state, from poverty alleviation programs to universal healthcare to universal education, the theme that straddles through all these is that most of these programs fail, to put it mildly. To be fair, governments have created islands of excellence in most segments; in healthcare, we have All India Institute of Medical Sciences (AIIMS), in technical education, we have IITs and IISc; we also have examples of extraordinarily capable public sector organization like ISRO, NTPC and BHEL. The government of India and state governments also undertake some of the grandest programs in the world; they very successfully undertake polio eradication program, they smoothly organize Kumbh melas, the largest human congregation on earth, and the biggest of all, routinely organize the biggest and most complex of the elections in the world. But these are all example of one off successes, which are just too few to count.

Whether you ask an industrialist, or economist, educator, factory worker or a tea-seller about the working of government, the only common lament, and a prominent one to be precise, is that government programs don’t actually deliver.

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INDIA’S GROWING FOOD PROCESSING SECTOR OFFERS REAL OPPORTUNITIES Scott S. Sindelar Minister Counselor for Agricultural Affairs, U.S. Embassy, New Delhi

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WHEELS OF CHANGE IN BIHAR WELL BEGUN; BUT NEEDS STRENGTHENING SETTING A PIONEERING EXAMPLE

31 BRINGING CLARITY TO CHARITY IN INDIA 32 35

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BABASAHEB’S VISION OF CASTELESS SOCIETY IS FAR FROM BECOMING REALITY Dr Udit Raj 48 BJP MP and national chairman, All India Confederation of SC/ST Organizations

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GETTING REGIONAL INTERVIEW : AJIT JAIN | CANADA EDITOR, THE INDIAN DIASPORA RETHINKING TIGER POPULATION MAKING WAY FOR EASY EXIT HALF-BAKED INITIATIVE? TIME FOR A COHERENT EDUCATION POLICY FRAMEWORK

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Editorial

Why policies fail to deliver?

L

ast few weeks have been quite hectic for political environment of the country. On the one hand, we had elections in five states which showed return of two state governments, and reversal of fortunes in three. On the other hand, the central government completed its two years in office. As celebrations and accusations of failure are both attracting media attention, we are trying to look at a deeper, fundamental issue. What is the situation of India’s policy making and implementation system?

It is common knowledge, though often denied or brushed under the carpet, that regardless of the hue of the government at center or states, not much changes on ground because of policies or programs of the governments. For evidence, they cite the situation of public services, from education to public transport and of schemes ranging from poverty alleviation schemes to employment generation schemes. Such is the lack of confidence among people that they very often don’t even bother to know about the policies or schemes. This hurts their own interest because it reduces the chances of success for even decent programs.

But why our public policies so miserably fail to deliver? Our civil servants are the best minds that come to office by clearing tough selection process. Every political party vouches for the welfare of poor and purportedly makes policies for downtrodden, poor, farmers and disadvantaged. Still these sections of society are lagging. That means either right people have not been right responsibilities or there is greater need to assess the ground realities.

Most experts believe that the policy making in India is completely disconnected with the reality.

Programs are launched without enough deliberation and in an ossified environment in which there is very little consultation, including with those who will directly be impacted by the proposed programs and schemes. As such, they are undeliverable to begin with. Some others think that policies are often announced for showing the intent of the government without realizing whether they are really desirable or deliverable.

Then we come to the tough grind which is the implementation of policies. This is also plagued by a bureaucratic structure riddled with incompetence, inefficiency, organizational tussles, disputes over jurisdictions, lack of purpose and lack of clarity. All of these make sure that even those policies that could have made some positive difference to the lives of people, meander their way to oblivion and fail to reach the fruition.

But there are still some programs and policies that do well. How do they manage to deliver? Policies deliver when they are defined well by keeping real needs of the people in mind, communicated well to bureaucracy in terms of measurable deliverables and implemented strictly. We have captioned a few of such programs. Invariably, these programs are planned with required consultation within and outside government and are dear to the leaders who ensure with personal interest that these get delivered on ground. That keeps bureaucracy on toe and focused to the job at hand.

Any government is only as good or bad as its policies are and any policy is as good or bad as it delivers.

So, if we are really interested in improving our governance, we need to reset our policy making and implementation system in such a way that results are felt on ground. That way, governments would not need to tell people they have delivered on promises. People themselves will vouch for the same.

Best regards

Ajit Sinha Editor-in-Chief www.governancetoday.co.in

June 2016 I 7

THUS THEY SPOKE I do not approve of any of these comments being made by anyone as far as the personality is concerned, because the RBI and its Governor is an important institution in Indian economy.

Arun Jaitley Union Finance Minister I am informed that the Public Department had followed the protocol manual in allocating seats in the hall for the event. If this seating plan caused him (MK Stalin) any discomfiture, I would like to assure him that there was no intent to show disrespect to him or his party (DMK).

J Jayalalithaa Chief Minister, Tamil Nadu He (Narendra Modi) has always a very friendly relationship with all Chief Ministers. He has had a friendly attitude towards me also and I hope it will remain in future as well. I need his friendship for Uttarakhand besides for me.

Harish Rawat Chief Minister, Uttarakhand We should encourage the thought that our families should do everything to protect and nurture the girl child‌ I consider this slogan (Beti Bachao, Beti Padhao) a way to take forward the whole society and adopt the right perspective towards our women.

Amitabh Bachchan Actor, Bollywood I am not even saying that you send me because of my previous records at the Olympics, all I am asking is to conduct a trial.

I just want them to check my performance. If you don’t even check how am I performing right now, then how would you know who between me and Narsingh is better.

Sushil Kumar Wrestler, India The wars of the modern age teach us this truth. Hiroshima teaches this truth. Technological progress without an equivalent progress in human institutions can doom us.

Barack Obama President, USA 8 I June 2016

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GOVERNANCE WATCH

SC strikes down TRAI penalty on telcos for call drops

Centre seeks views on allowing passive euthanasia

Quashing the penalty rule framed by the Telecom Regulatory Authority of India (TRAI), the Supreme Court recently ruled that telecom companies will not compensate mobile phone users for inconvenience caused by call drops. A bench of Justices Kurian Joseph and R F Nariman termed TRAI’s rule “arbitrary, illegal and unreasonable” and said no proper deliberation had gone into its framing.It said telecom companies cannot be punished by TRAI in the name of protecting consumer interests, and dismissed the conclusion that the firms alone were to blame for call drops and were thus deficient in service.The court said the regulation is based on mere guess-work. Meanwhile, the government is now looking at options to address the issue and how it can fix more accountability on mobile operators for poor services.

The Union Government has finally come up with a draft bill on passive euthanasia that gives patients the right to “withhold or withdraw medical treatment to herself or himself” and “allow nature to take its own course”.The Union health ministry recently uploaded the draft, titled Terminally Ill Patients (protection of patients and medical practitioners) Bill, on its website and has invited comments, via email, from people before June 19, 2016.The bill provides protection to patients and doctors from any liability for withholding or withdrawing medical treatment and states that palliative care (pain management) can continue.

However, the draft has disappointed experts who wanted clarity on the concept of a living will. A living will is defined as “a document in which a person states his/her desire to have or not to have extraordinary lifeprolonging measures when recovery is not possible from his/her terminal condition”.

Both Lok Sabha, Rajya Sabha pass bill in one day In a rarest of rare instance in Parliamentary history, both Rajya Sabha andLok Sabha recently passed the Rajendra Prasad Central Agricultural University Bill.

Even President Pranab Mukherjee gave his assent to it the same day.The legislation, meant for upgrading the existing RajendraAgriculture University (RAU), Pusa, Samastipur in Bihar as a central university, gave the state its first central agriculture university.The central agriculture university is said to be a big gift for the people of Bihar, which recently also got the Mahatma Gandhi Central University in Motihari. According to the new legislation, the headquarters of the university will remain in Pusa, Bihar. It will have powers to establish campuses at such other places within its jurisdiction as it may deem fit provided the university should integrate the existing campus and other associated facilities of the RAU. www.governancetoday.co.in

June 2016 I 9

GOVERNANCE WATCH

India’s first-ever indigenous ‘space shuttle’ successfully test-launched

65 new retirement age for government doctors

The Indian Space Research Organization (ISRO) successfully test launched the first ‘Made in India’ space shuttle, called the Reusable Launch Vehicle (RLV), from Sriharikota in Andhra Pradesh. The test launch is considered a significant step in India’s space endeavour. It’s especially important because in 2011, the US’s Nasa abandoned its reusable space shuttle project. The test launch of the 6.5 metre long and 1.75 ton reusable launch vehicle (RLV-TD) occurred from the Satish Dhawan Space Centre. The RLV-TD is described as “a very preliminary step” in the development of a reusable rocket, the final version of which is expected to take 10-15 years. The government has invested Rs 95 crores in the RLV-TD project. ISRO chairman Kiran Kumar explained that the experimental RLV it is essentially an attempt by India to bring down the cost of making infrastructure for space.

Prime Minister Narendra Modi recently said the retirement age for government doctors will be increased from the current 62 to 65. Addressing a rally in Uttar Pradesh’s Saharanpur to launch the celebrations for the second anniversary of the NDA government, Modi said the country is facing a huge shortage of doctors - a situation that would not have happened if there were enough medical colleges in the country. Since it was impossible to create a doctor in two years, the government was going for another option. The doctor patient ratio in India is abysmal, especially in rural parts of the country, where few doctors opt to practice. The National Urban Health Mission is still in its infancy. The PM also appealed to the doctors to give one a month and treat pregnant women from economically backward classes for free.

Wilful defaulters can’t tap markets The Securities and Exchange Board of India (SEBI) recently notified rules aimed at banning wilful defaulters from raising money from the markets.

The rules will impact companies and individuals categorized as ‘wilful defaulter’ by the RBI. The entities who could be banned include promoters and directors of a company, as well as the company. This move of the market regulator comes at a time when the government and the RBI are fighting a menace that is partially responsible for the huge pile-up of non-performing assets (NPAs), mainly in public sector banks. Earlier in March this year, when the controversy around loan default by flamboyant Indian businessman Vijay Mallya was at its peak, the SEBI board had taken a decision on banning wilful defaulters from the market.

It has now been notified.

10 I June 2016

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GOVERNANCE WATCH

Law to crack down on Ponzi schemes soon As PM Modi strives to bring the rural poor into the mainstream banking system, the NDA government plans legislation to close a regulatory loophole that has made it possible for fraudsters to dupe millions of savers. Unscrupulous operators have cheated savers of billions of dollars by running pyramid schemes or promoting questionable investments in everything from tree plantations to farming emus, a flightless bird.

Parliament could consider a bill next month that would replace weak rules that now govern credit cooperatives operating in more than one state. These are now overseen by just 10 staff at the agriculture ministry.

India does not have a unified regulatory regime to counter Ponzi, or pyramid, schemes whose operators typically grab new deposits to meet their promise of guaranteed returns to existing savers. Such schemes can snowball but are doomed to eventual collapse when they run out of new savers.

NHAI to reimburse loan to lenders even in stuck projects In a major respite to lenders that have bankrolled languishing project, the National Highways Authority of India has decided to pay back key share of the loan to banks after carrying out independent assessment of the work done. Such projects will then be, under public-private-partnership, taken over by the authority for their completion. According to reports, NHAI Board, the apex body with representatives from different ministries, has approved the proposal and it will soon be sent to the cabinet secretariat for its assent to carry out necessary changes in the model concession agreement (MCA). Such a mechanism is likely to bring relief for bankers in at least 7-8 stuck projects. In the existing MCA, lenders get no compensation in case a project is terminated during construction period. They are entitled to get 90% of the remaining debt only in case a contract is terminated after completion of the project.

Vans to drive awareness for Digital India In order to spread the Digital India programme and its benefits to citizens, the Centre has decided that it will be rolling out multiple vans in interior districts of the country.

Minister of Communications and Information Technology Ravi Shankar Prasad recently launched the initiative dubbed Digital India Outreach Campaign with flag off 14 vans. The first phase of the outreach campaign will end this month. As part of this, 16 vans will be rolled out to 34 districts of nine states -- Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, and Rajasthan. The government plans to run 66 vans and cover 657 districts of the country by March 31, 2017. The vans are equipped with audio visual facilities, and also offer Internet connectivity, education material and other items. The information about the services are offered in 14 Indian languages

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June 2016 I 11

GOVERNANCE WATCH

Women-specific budget initiatives in J&K

Gangajal at your doorsteps via India Post

The Jammu and Kashmir government recently announced special budgetary initiatives for women that include school fee waiver up to Class 12, and reserved quota of industrial land for female entrepreneurs.

Finance Minister Haseeb Drabu said the womenspecific initiatives were envisaged “in deference” to Mehbooba Mufti -- the first woman chief minister of the state. Drabu also proposed that “10 percent of industrial estates shall be reserved for women entrepreneurs” in the industrially backward state. To encourage women’s start-ups in the state, the minister also proposed two entrepreneur development centres -- one each in Srinagar and Jammu -- to “help, guide, and train aspiring women entrepreneurs” in the state.

Drabu also committed Rs 5 crore for “women only” city bus services which began in Srinagar recently.

The government will set up four new women’s police stations in Pulwama, Kupwara, Kathua and Udhampur.

With an idea to address the cultural underpinnings of India, the Union government is considering to launch an initiative under which Indian post will deliver Gangajal at your doorsteps. It is planning to tap the e-commerce platform to bring the holy water at the doorsteps. Ravi Shankar Prasad, the minister of telecom and IT, said the initiative is aimed at using the vast postal network to transport the holy water across the length and breadth of the country. “We do have the wherewithal to undertake this kind of an initiative. Work on this will begin soon and we intend to provide Ganga water from Haridwar and Rishikesh,” Prasad said, as he spoke about the new initiatives being planned by the NDA government. The prices for the bottled Ganga water are being finalized. There also plans to have kiosks within post offices that will be selling the Gangajal.

LIC, largest likely investor in NIIF State-run Life Insurance Corporation of India (LIC) is likely to be the largest investor in the government’s proposed National Investment and Infrastructure Fund (NIIF), worth 40,000 crores as LIC has taken 15 per cent stake in NIIF. The NIIF initiative aims to fund infrastructure growth. The government will provide half the amount while the rest will be collated from domestic and global long-term investors.

Post creation of fund, LIC may invest up to 10 per cent in the overall corpus of the fund. This spells out to be a contribution of Rs 4,000 crore. It is in this scenario that Hemant Bhargava, Executive Director; LIC of India has taken charge as Zonal Manager (North).

With a wide experience of over 33 years in Life Insurance sector in India and abroad, he as the leader of Northern Zone will focus on substantial growth in business along with corresponding achievements in servicing areas so that LIC (North) achieves “Numero Uno” position and contributes towards further growth of the corporation.

12 I June 2016

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GOVERNANCE WATCH

NTPC, Coal India join hands to foray into fertilizer sector A joint venture agreement has been signed between NTPC and Coal India for formation of a joint venture company to take up the revival of fertilizer plants of Fertilizer Corporation of India Limited (FCIL) at Sindri, Bihar and Gorakhpur, Uttar Pradesh by setting up an ammonia-urea plant at each location. The JV Company would initially be incorporated with equal equity (50:50) participation from NTPC and CIL. The JVA contains provision of inducting strategic partners at a later date depending upon business requirement of JV Company.

The agreement was signed by Arun Kumar Gupta, general manager (BD), NTPC and T. Bandopadhyay, general manager, Coal Videsh, Coal India in the august presence of A. Panda, director (Finance), South Eastern Coal Field Limited (SECL). M. Viswanathan, company secretary, Coal India and Murari Prasad, AGM (BD) were also present on the occasion.

New framework to boost hydropower projects soon The Ministry of Power is coming up with a new framework to boost hydropower development in the country by lowering the cost and removal of longdrawn clearances. Addressing a conference in New Delhi recently, Additional Power Secretary BP Pandey said, “Very soon we will take it up to the highest level in the government, so the focus is going to be back on hydro.� Hydropower is much cleaner, greener and sustainable option, he said, adding that water security is an issue in India and there is a need for storages as well. Highlighting that reducing the cost of hydroelectric power is one of the major challenges in the hydropower sector, he suggested for financial restructuring together with innovative financing instruments. Speaking at the same event, Arunachal Pradesh Chief Minister Kalikho Pul invited private players to install hydropower plants in his state and assured all necessary support.

Optimizing resource utilization for Navy Because of the very high cost of a futuristic aircraft carrier, the Defense Ministry is doing a rethinking and is evaluating options for more optimal utilization of resources for other critical purchases like submarines and advanced frigates.

Navy officials feel that plan for a 65,000 ton nuclearpowered aircraft carrier to be fitted with an American catapult system may not get financial clearances soon as the ministry was looking at other options. According to estimates, the cost of construction of the carrier itself, without the aircraft, could exceed Rs 70,000 crore. The high cost is primarily due to the integration of the nuclear plant as well as the American electromagnetic aircraft launch system (EMALS). For the Indian Navy, the aircraft carrier has always been central to projection of power and status as the dominant maritime force of the region.

India currently has two carriers, Viraat and Vikramaditya, and there is another one under construction in Kochi. www.governancetoday.co.in

June 2016 I 13

GLOBAL WATCH

China sign agreements with Sudan to build nuclear plant China has signed two agreements with Sudan to build 600-megawatt atomic reactor. It is the first such project in the country. The agreements were signed during a three day visit to Sudan by a Chinese delegation led by Nur Bekri, head of the National Energy Administration (NEA) and deputy director of the National Development and Reform Commission (NDRC). The China National Nuclear Corporation (CNNC) signed a memorandum of understanding with the electricity ministry to build nuclear reactors that would help to generate electricity. In 2012, Sudan informed the International Atomic Energy Agency of its intention to pursue nuclear technology amid an increased demand for electricity from the country’s growing population. Sudan’s current annual power generation capacity is about 3,000 megawatts, but demand is expected to rise significantly over the next few years. The Chinese corporation’s deals are in line with President Xi Jinping’s aggressive foreign policy initiatives that include promoting homegrown technologies abroad.

UN holds the first ever World Humanitarian Summit The United Nations held the first World Humanitarian Summit in Istanbul. Presided by the UN Secretary-General, Ban Kimoon, the summit called for commitments made to be taken forward for transformative change from the top down and from the ground up. Among the important commitments made are: a) The Education Cannot Wait Fund to help provide quality education to children and youth in crises. b) A Grand Bargain that will increase the efficiency and effectiveness of investment in emergency response. c)The Global Preparedness Partnership to better prepare twenty of the countries that are most at risk of crisis. d) The One Billion Coalition for Resilience which aims to mobilize a billion people to build safer and more stable communities worldwide. A new charter for Persons with Disabilities was also endorsed at the summit. But all the commitments contained in the document are non-binding, making it a declaration of intent rather than action.

US lifts embargo on lethal arms sale to Vietnam The United States lifted a decades old ban on arms trade to Vietnam as part of deeper engagement between the two countries that will erase the last traces of cold war. The warming US-Vietnam relationship is partly being driven by mutual concern over China. The increasing aggressiveness of Beijing in asserting claims to more than 80 percent of the South China Sea in spite of the pivot to Asia policy of the US has been a cause of worry for the US. China’s growing military and economic clout in the region is increasing its leverage with Southeast Asian nations, with the U.S. trying to counter those gains by improving defense ties in the region. The U.S. has provided almost $46 million since 2014 to Vietnam’s efforts to strengthen its maritime security capabilities, according to statistics released by the White House. New sales are likely to be modest initially to help Vietnam modernize its coastal defenses.

14 I June 2016

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GLOBAL WATCH

World Bank launches insurance market for pandemic risk The World Bank has launched the first Pandemic Emergency Financing Facility, the insurance market for pandemic risk to help countries and health agencies fight infection at the G7 finance ministers summit in Sendai, Japan. The $500 million dollar insurance fund is expected to bring the much needed coordination and speed for future global disease outbreak response efforts. Japan became the first donor by pledging $50 million. The PEF is structured as a two-tiered financial mechanism with both insurance and cash components.

The insurance portion will stem from the World Bank’s catastrophe bonds and provide up to $500 million in coverage for up to three years for the most common pandemic-causing pathogens (all three types of flu virus, SARS, MERS, Ebola, etc.). The cash portion is meant to combat pathogens which are less likely at this point to cause a massive outbreak.

A total of 77 developing countries will be eligible for coverage.

Kenya to shut the world’s biggest refugee camp at Dadaab Kenya has decided to close the world’s biggest refugee camp within a year and send thousands of Somalis who fled the war-torn regions back to their homeland or to other countries. The country is in the process of drawing up a timetable to set the plan in action. The explanation that the Kenyan authorities gave for closing down the camp which is home to close to 330,000 Somali refugees was the string of terror attacks by al-Shabaab in the country.

According to the official statement released, the camp has become a safe haven for many terror outfits and for reasons of national security; the country was left with no option but to take such a step. The government has earmarked $10 million and created a task force to expedite the closure. The UNHCR warned of devastating consequences and said the actions may violate Nairobi’s international obligations to people in need of sanctuary.

US Navy tests Sea Hunter, the world’s largest unmanned surface vessel United States of America Navy tested the world’s largest unmanned surface vessel named Sea Hunter in San Diego. The self-driving, 132foot ship designed to travel thousands of miles out at sea without a single crew member on board. According to military officials, the vessel has the potential to revolutionize not only the military’s maritime operations but also commercial shipping. The Pentagon’s research arm, the Defense Advanced Research Projects Agency (DARPA), developed the ship along with Virginia-based Leidos. DARPA will test it in conjunction with the Navy over the next two years off California’s coast. The tests will largely focus on its ability to react on its own to avoid collisions with seafaring traffic. During the testing phase, the ship will have human operators as a safety net, but once it proves to be reliable, the autonomous surface vessel will maneuver itself. It will be able to travel up to 10,000 nautical miles. www.governancetoday.co.in

June 2016 I 15

COVER STORY

Rethinking India’s policy Anand Mirshra

I

f you look at the major schemes or policies of the government, central or state, from poverty alleviation programs to universal healthcare to universal education, the theme that straddles through all these is that most of these programs fail, to put it mildly. To be fair, governments have created islands of excellence in most segments; in healthcare, we have All India Institute of Medical Sciences (AIIMS), in technical education, we have IITs and IISc; we also have examples of extraordinarily capable public sector organization like ISRO, NTPC and BHEL. The government of India and state governments also undertake some of the grandest programs in the world; they very successfully undertake polio eradication program, they smoothly organize Kumbh melas, the largest human congregation on earth, and the biggest of all, routinely organize the biggest and most complex of the elections in the world. But these are all example of one off successes, which are just too few to count.

Whether you ask an industrialist, or economist, educator, factory worker or a tea-seller about the working of government, the only common lament, and a prominent one to be precise, is that government programs don’t actually deliver. Every person has his own explanation, ranging from monstrous corruption to lack of manpower, unrealistic policies, inefficient implementation and lack of money. To be frank, all these are correct, in different measures. And because of all these problems, most government programs and policies suffer from poor delivery, which in turn, shatters the confidence of general public.

Surely lack of experience cannot be the reason for the sclerosis that has set in our public services, public programs, public utilities and public institutions. The problem, sadly,

16 I June 2016

Nearly seven decades after independence, all rural children do not have a decent classroom

starts from the policy formulation and runs through the people and processes of policy implementation.

Further, the mechanisms of outof-government consultation and feedback is either broken or are incapable or unwilling to elicit good feedback. Furthermore, the capacity of bureaucracy is limited.

But there is an even bigger problem at work here. According to TSR Subramanian, former Cabinet Secretary of India, there is a massive disconnect between the policies and the realities on the ground. He also points towards the lack of desire of the system in delivering on the policies in right earnest.

Making policies and designing programs for a country as vast,

diversified and complex as India is not an easy task for sure. Not only India is a large land mass, it also has numerous ecological zones, diverse geographical and agricultural zones, and not to mention the population with multitude of social and cultural differences. As such, there is a definite possibility that even the best laid out plans may not be suitable to all. But experience shows that even the most fundamental policies or programs such as basic healthcare and school education do not deliver on ground. So, what’s going or has gone wrong? Why does Indian policy-making apparatus have such problem in formulating good policies and then implementing them in right manner? www.governancetoday.co.in

apparatus

Poorly framed policies?

India has been an underperformer in most of socio economic sectors even though it has among the largest number of policies and programs for various sector. Such under performance per se arises due to adopting the wrong public policies, and/ or poorly implementing the right public policies.

According to experts, a good policy is made with high degree of legitimacy and accuracy. Legitimacy has three aspects; it needs to be procedurally legitimate, i.e. made by an authority legally authorized to make policies; it has to be perceived legitimate by those affected by it; and finally, it should be substantially www.governancetoday.co.in

legitimate, i.e. people must have confidence in the expertise of policy makers. Another attribute of a good policy is that it can be executed swiftly and successfully. That requires consultation with implementing agencies or institutions. Next, a good policy compensates losers to the justifiable level. Finally, a good policy has mechanisms for feedback assessment and course corrections while implementation.

On many of these parameters, India’s policy making process has invariably faltered. Some examples elaborate multiple weaknesses.

In Budget 2016-17, the Finance Minister introduced partial taxation on employee provident fund (EPF), which is currently tax free. Such was the furor and protest that he had to amend the proposal within a fortnight. Last year, the government hiked the rail fares which had to be partially rolled back in wake of the protests. Even bigger case is of the much reform worthy Land Acquisition Bill which would have made it easier for the state to buy land for infrastructure and industrial usage. Thanks to widespread protests and political opposition, the plan was to be sent to freezing box.

All of these examples have something in common. In each of these, the debate on the possible impact of the proposed policy took place after policy-making, instead of before. In those cases where debates happened before, either all concerned were not talked to, or those impacted were not talked to, or compensated. In a fractious democracy like India, this is a sure invitation to trouble as government found out in each of the cases.

Broadly, Indian policy making apparatus suffers from three or four structural problems. First of all, there is too much fragmentation in the policy making apparatus. It is not uncommon to see three or more ministries/ departments working on one sector. Transport has been one of such sectors. At different points, ministries of railways, road, civil aviation, ports and shipping, and urban transport are all involved in regulating the sector. Same was the case with power and energy sector

which was taken care of by the present government when it merged the ministries of power with coal and renewable energy. There has to be a thorough rationalization of work across ministries to unify commands wherever required eliminate redundancy and overlapping controls.

Secondly, there is a sizable section of analysts who feel that the top bureaucracy is needlessly involved in policy implementation rather than focusing primarily on policy making and leaving implementation to juniors. This comes from excessive centralization of administrative powers. To deal with this, departments need to be strengthened with more powers so that they do not have to run to secretaries for administrative or implementation related decisions.

Needless to say, information would still need to be seamlessly shared upwards to ensure any course correction at policy level is done without losing time.

Third, we don’t have enough of debate outside of government on any policy related matters.

Surprisingly, this happens even though a reasonably sound template is available in form of budget related discussion that is carried out with non governmental entities like industry, academics and labor organizations. This lack of institutionalized mechanism to have informed debate on issues results in poor and ill identification of real winners and losers from any policy and in turn, possible suitable trade-offs. Fourth and finally, there is lack of organizational capability within policy making apparatus.

According to a senior official who refused to be identified, even though there are outstanding specialists in respective departments, there is still great dearth of top-of-theleague professionals. And because the system is not very welcoming of external professional advice, the quality of policies suffers. To take care of both of these problems, ministries should put in place policy advisory groups, which could have representation from academia and industry. These bodies can even draw June 2016 I 17

on the expertise of the Niti Aayog which itself is a policy deliberation body.

Ineffective implementation But even the best planned policies can come a cropper if not implemented well. And implementation of policies and programs is not the forte of Indian bureaucracy. Even best guesstimates do not peg the implementation success to be more than half of the target, which is not something to be proud of. To a large extent, the

in multiple ways. And in a system with so many layers of implementers with little oversight, that is a sure way to failure. This poorly detailing happens because of two reasons; first, policymakers are not able to flesh out the details, and second, implementers are unable to agree among themselves. The case of smart cities initiative is an example. Even though the intent of the government in creating templates for ideal urban environment through the initiative is not suspect, the program specifics in terms of deliverable is still vaguely defined. Either way, the efforts are misplaced in such situations and

Many policies have been reversed after huge protests

system has failed the people when it comes to delivering public services, including in areas of healthcare, education and food security which are the backbone of any prosperous country. But why do so many policies and programs fail to be implemented?

There could be implementation gap as a result of many factors, which range from the faulty policy design to poor institutional structure of delivery system, political interference, inefficient and corrupt workforce and lack of accountability.

But the most important aspect of implementation failures is that policies are based not of realism but on political expediency. This makes policies dead on arrival, and hence non-implementable.

But that hardly means that good policies do get implemented. In a large number of them, detailing is so poor that they can be interpreted 18 I June 2016

implementation is unsatisfactory. As such, all policies need to be detailed enough to minimize ambiguities.

Some degree of ambiguity may still be useful as it allows flexibility at grass root level but excess of it derails the program itself.

Second major reason for poor implementation comes from fragmented control structure that we talked about above. Because of such fragmentation, massive organizational coordination is required. Additionally, new, complex programs need creation of new agencies and organizations which further complicate the matter. Such coordination is mostly not achieved, leading invariably to delayed implementation and massive cost overruns. Further complicating the problem is the jostling among departments to protect their ‘turfs’ which results in allocation of responsibilities based on relative

power of departments rather than what is required for effective administration. Finally, multiple approvals required from agencies with very different objectives lead to stalemates and inaction. Needless to say, radical simplification of procedure and doing away of needless approvals is the only way out of this messy situation. A welcome start has been made as redundant laws have started to be done away with.

Political interference and the resultant subversion and dilution are also understood to be reasons for suboptimal implementation of many programs and policies. Politicians often intervene in decision-making for electoral reasons with or without assistance from bureaucracy.

This problem is exacerbated by corruption in bureaucracy which results in rent seeking behavior such as embezzlement and bribe-taking on the one hand and frustrating the honest work force on the other.

Insulating bureaucracy from political pressures is the need of the hour which would protect honest workers from pressures and allow them to work fearlessly and make them less susceptible to politicians.

Besides these, non involvement of target groups is also a reason for poor implementation of the projects and programs. Whenever policies are made in isolation, i.e. through a top down approach, the chances of success dips as the potential beneficiaries feel alienated.

Next, Indian bureaucracy suffers from a poorly designed accountability structure.

The accountability structure is currently completely top down which means that bureaucrats are answerable only to their bosses who alone judge their performance. This leaves immense scope for subjectivity. Additionally, because of this completely isolated accountability system officers are often serving bosses and not the people. As Subramanian puts it, the well being of a bureaucrat depends on his relation with superiors instead of his work related performance.

To correct this problem, there is requirement to incorporate bottom-up approach in judging the www.governancetoday.co.in

THERE IS A LARGE MAKE-BELIEVE COMPONENT IN POLICY ANNOUNCEMENTS A vocal advocate of governance reforms, former Cabinet Secretary TSR Subramanian has been involved in the policy making in various sectors such as environment laws and education. In an interview to Governance Today, he shares his opinion on the problems plaguing India’s policy establishment. in no time. Everybody knows what is to be done. But we are going through the motion. We have become a Khanapuri country. This is the reason why the makers of American constitution said that because there is lot of power concentrated in political class and bureaucracy, there must be strong control on them. Unfortunately, such control is absent in our country because of which the system has become unresponsive to the needs of the people.

What are the major reasons for policies and programs failing in India?

A large number of the programs and policies are not formulated in conjunction with reality, or with the intent to be implemented.

Very often policies are made just for the purpose of announcement and announced for public consumption, if you will. So, there is a large make-believe component. In the business of politics, policy announcements are a tool to win votes. Because of this, to a large extent, the real purpose of democracy is lost. It has been reduced to a game of vote grabbing and winning power to make money. The Election Commission says that the Rs 100 crore they unearthed in Tamil Nadu is tip of iceberg. That means in reality the money involved may perhaps be Rs 500-1,000 crores.

Naturally, if someone is spending so much to win election, he is in it to make even more money; he is no saint.

Today, according to experts, half of an average Indian’s lifetime expenditure on medicine is spent in last fifteen days of his life. If there is an illness, the livelihood and earning of majority people stops. There is no support for rural healthcare. In true sense, in nearly 70 years of independence, this should not have been the case. In reality, the governance has utterly failed, there is no better word. It performance of the bureaucrats.

This is important because in countries like India, accountability structures are not evolved enough to filter partiality and favoritism out of the process. To make performance evaluation reliable and rewarding www.governancetoday.co.in

has totally collapsed. The motto of our administration has ceased to be the welfare of people, its motto has become to earn money for administrator.

Broadly, therefore, there are three reasons for failure. First there is a genuine disconnect; policy makers simply don’t know the reality. Second, there is no desire to deliver; everyone is interested in passing his time. Third, there is a strong desire to make-believe.

Many people say that bureaucrats are overworked because they have to plan and implement policies because of which both suffer. What’s your take?

These are all small things. I am talking about the bigger and more fundamental issue which is of intent. If intent is there, all these things can be sorted out very easily

to those who deserve, mechanisms should be devised to elicit the opinion of people, including NGOs, on the service delivery of healthcare, waste disposal, traffic congestion etc.

Finally, there is a need to build

How much can new initiatives like e-governance help in improving governance?

I will give you an example. We submitted the national policy on education very recently. The last policy was made in 1986 which was revised in 1992 and announced by the then PM Narasimha Rao in the same year. We said that implementing the last policy is enough; we are only adding the new things like incorporation of ICT in the policy. But this report is not put on the ministry’s website. If it is put on website, people can see and make comment or suggestion.

Whether or not to agree with the report is prerogative of the government. But at least people will get to know about the report.

So, now technology has given you tools which can be used for effective feedback. This should be facilitated by e-governance.

capacity of bureaucracy, especially in middle and lower order. These are the segments which are most responsible for implementation of policies and programs and as such need most capacity building. There has been a long debate over the June 2016 I 19

utility of generalists and specialists in bureaucracy. Both have their use but at lower levels of bureaucracy and respective departments, there is perhaps an even greater need for making officials more receptive to the requirements of the people they serve.

Incidentally, the need for strengthening bureaucracy was felt long back and the Organization and Methods Division was set up in March

Leveraging e-governance The ICT has become a major tool for identifying the need of public and improving the service delivery world over. Internet based consultation, feedback and real time service assessment have revolutionized governance globally. But India is still tentative in fully exploiting this medium. For example, only recently, an expert panel headed by TSR

RECOMMENDATIONS OF THE NATIONAL KNOWLEDGE COMMISSION TO PRIME MINISTER ON E-GOVERNANCE • Government process be reengineered before computerization • Identify and simplify10 to 20 Important Processes and Services (to begin with) • Develop and enforce citizen/business entitlement standards uniformly over all states and central ministries and functions • Provide nationwide secure broadband infrastructure and associated hardware, software and hosting facilities with easy access at all levels • State governments should use templates created by the central government to offer localized data and services in Indian languages • Actively encourage wherever possible open source software implementations and open standard • Each state and major central government departments must create an empowered chief information technology officer, with relevant expertise and skills in the domain subject and IT usage • For successful national e-governance, create an appropriate central organization with structures that can operate in mission mode, with full autonomy and accountability

1954 in the Central Government to improve the efficiency of Public Administration.

In 1964, it mutated into the Department of Administrative Reforms. Also, there is a Comprehensive Capacity Building Program running under JnNURM which aims to enhance the capacity of urban local bodies (ULBs) to undertake developmental activities and achieve improved levels of basic service. However, with all these programs, the performance of officialdom has not improved much. This has led some experts to question the basic intent of the bureaucracy to improve itself.

20 I June 2016

Subramanian submitted its report on the new educational policy.

However, the report is not yet on the ministry’s website. If the report is available online, citizens can respond and offer suggestions. That would mean real participation of people in decision making process.

The government has embarked upon putting in place a strong e-governance system which is indeed a commendable effort.

Projects like Digital India are immensely potent in improving the workings of the government at policy making, implementation and feedback levels. But for that, the primary focus of the e-governance

has to be on reengineering the government processes and reorganizing the working styles and methodologies instead of simply automating the existing processes as the National Knowledge Commission recommended on the issue of e-governance reforms. This migration from ‘as is’ to ‘to be’ has to be the motto for radically altering the policy making and implementing system.

Good governance is a direct outcome of sound policy making and effective policy implementation.

A good policy addresses the stated, perceived and latent needs of the people. Those policies and programs which do stand true to the needs of the people and are implemented well, do bring positive changes in peoples’ lives (some such programs have been featured in later pages). It is the right of every citizen to have good policies made and delivered at the right place. Bureaucracy and political establishment derive their legitimacy from people in a democracy and are ultimately accountable to them.

They cannot shirk that responsibility.

Due to various reasons, the entire bureaucratic system has got inward looking and to some extent predatory.

It is necessary therefore to reinvent the policy making process and implementation machinery so that good policies are made and are implemented. Further, the spirit of free flow of ideas within officialdom and from outside the government machinery must be preserved; it is the basic tenet of participative governance.

To be fair, we do see some actions here and there; the need is to institutionalize the best practices and strengthen the bureaucracy to be able to perform. Simultaneously, bureaucracy must be shielded from political pressures and be made transparent. Finally, as experiences of governance reforms in developed world shows, best policies are mostly simple, well targeted and efficiently implemented. Is it too much to ask from our chosen representatives and our best and brightest minds to make and deliver such policies? It should not be. anand@governancetoday.co.in

www.governancetoday.co.in

COVER STORY

Wheels of change in Bihar ‘Mukhyamantri Balika Cycle Yojna’ launched by Chief Minister Nitish Kumar in 2006 may be a modest intervention but is leading to big changes

Ramesh Kumar Raja

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ourteen-year-old Sulekha Kumari, a daughter of illiterate parents, is confident about pursuing her dream of becoming a government employee, as reaching school is no longer a problem for her. She pedals around 5 km every day from her village to Marwari High School at Bairgania in Sitamarhi district, to chase her dream, a much-treasured goal in one of the poorest states of the country.

Sulekha is not alone. Lakhs of schoolgirls in Bihar, just like boys, have a dream in their eyes to do something, and riding bicycles to their schools every day gives wings to those dreams, thanks to ‘Mukhyamantri Balika Cycle Yojna’ launched by Chief Minister Nitish Kumar in 2006. The scheme entitles girls in classes 8, 9 and 10 to a free cycle from the state or Rs 2,000 to buy one which was later

www.governancetoday.co.in

increased to Rs 2500 — mirroring a scheme started by Tamil Nadu but revolutionary all the same for a state like Bihar, where the girl child has traditionally received short shrift (as in most of India). The scheme has released a pent-up hunger for learning in schoolgirls and has brought a sense of urgency to them.

They want to excel like never before.

Although several factors have contributed to this trend of girls showing willingness to go to school, social scientists have linked this welcome change in Bihar to the government-sponsored cycles programme. The results speak for themselves as school enrolment among girls in Bihar has not only increased in the last 10 years, the dropout rates have also drastically fallen. “Long distance from schools has often been cited as one of the major reasons behind poor enrolment of girls, but the cycle has taken care of that concern,” feels Chinmaya Kumar, country economist, India-Bihar programme,

International Growth Centre.

Before the launch of this programme over 10 years ago, it was rare to find a schoolgirl riding a bicycle even on the streets of Patna. But now, one can watch scores of confident-looking schoolgirls pedalling away with gusto everywhere – from the narrow lanes of a remote village to the bustling roads of the cities across the state. The dropout rate among the schoolgirls had been very high in Bihar over the years.

The girls, particularly those from rural areas, would often discontinue their studies beyond the primary or middle schools. Most of them were often married at an early age, which left them with fewer opportunities to contribute their bit towards economic development of society.

The signature scheme, which has changed the face of Bihar, is said to be very close to Nitish Kumar’s heart.

“After taking the reins of the state, I kept thinking of various ways to reduce the dropout rate of students June 2016 I 21

in general and the schoolgirls in particular. It was in 2006 that I decided to give away bicycles to all the schoolgirls of classes VIII, IX and X studying in government schools. I was sure that this incentive would go a long way not only in arresting the dropout rate of schoolgirls in the high schools but also be a significant step towards woman empowerment,” Kumar wrote in his blog posted on April 20, 2010.

According to Kumar, “It would be no exaggeration to say that the scheme has been an unqualified success. It has given me a lot of satisfaction since it has helped check the dropout rate of schoolgirls to a great extent across the state…

This is, in fact, an affirmation of the fact that a small initiative can really go a long way in bringing about a big change. In Bihar, bicycles have now become an absolute instrument for social change which can be felt in any part of the state.”

The main aim behind the programme – which was later expanded to include boys as well – was to reduce gender gap in enrolment in schools. When at a public meeting, some boys complained to the Chief Minister about gender discrimination, Nitish widened the scheme so as to include even boys under the same cycle project. According to reports, the number of girls enrolled in class 9 till 2006 was around 1.5 lakh.

After the launch of the scheme, the girls’ enrolment has now increased to over 8.25 lakh, more than seven times in the last 9-10 years. Since 2006-07, the state has recorded around 70 lakh beneficiaries from the scheme.

The most basic two-wheeler has not only brought the school closer to many girls, it has also changed some traditional notions. The responsibility of going to the local market is not confined to the boy child only, but even girls go there with ease to purchase household items. They have become much more confident now and talk about careers in public.

Such is the impact of the ambitious scheme that in the last few years, several prominent cycle 22 I June 2016

The man who changed the face of female education in Bihar

Many people have called it a ‘revolutionary’ concept and asked me when did I first think of this project? To tell you the truth, I got the idea while I was at an official programme organised by the Patna district administration in 2006. On that occasion, I had distributed a few bicycles among children from the underprivileged sections of society. When I handed over the keys to them, I could see happiness all over their faces.

The memories of those happy faces of poor children remained with me long after the ceremony was over. Soon, I held a meeting with senior officials of the Human Resource department asking them to work out a plan for distribution of free bicycles among all high school girls.

The department promptly invited tenders from the companies and the lowest quoted price was Rs 1,840 for each bicycle.

The officials of the department advocated for bulk purchase of bicycles and their distribution through official machinery. They also suggested that each bicycle bear the insignia of the Bihar government.

But I did not approve of the ideas. I thought that purchase of bicycles through tenders might give rise to corruption in future. Instead, I was in favour of handing over money through cheques directly to the beneficiaries. I thought it would not only simplify the entire process but also make the scheme transparent.

I, therefore, asked the then secretary of the Human Resource department to add Rs 160 to the lowest quoted price for each bicycle and launch the project straightaway...

I have always believed that any society cannot progress unless its women progress -- and the women in any society cannot progress unless they are educated. This scheme is a small step in that direction.

Excerpts from Nitish Kumar’s Blog (Posted 20th April , 2010) www.governancetoday.co.in

manufacturing companies - Hero Cycles, Avon Cycles and TI Cycles - have tiptoed to Bihar and more companies are showing interest to set up their base in the state.

Leading the pack is Hero Cycles, which has invested Rs 55 crore to set up a modern plant in Bihta Industrial Park, nearly 35kms from Patna, and employed over 250 people, the majority of whom are from the area.

The mother cycle plant has brought two ancillary units - with a total investment of around Rs 25 crore creating employment opportunities for another 150 people. The plant, the company’s first dedicated bicycle manufacturing unit outside Punjab, is a major step towards strengthening Hero Cycles’ leader position in the eastern market. Avon Cycles, which has a plant in Hajipur

it will augur well for the state, which faces the chronic problem of lack of employment in the organised sector.

The cycle scheme isn’t the only programme helping to keep girls in schools. Under the Mukhyamantri Balika Poshak Yojana, all girls studying in classes 6 to 8 are given Rs 700 each for school uniforms and study material. Over 3.6 million students have benefited from the scheme since it began in 2006. In 2009, the scheme was extended to girl students of class 3, 4 and 5.

It’s not just for the beneficiaries, the cycle scheme seems to be working for the political masters as well. The success of the programmes has ensured Kumar the support of those who have benefited from them. “No previous government ever thought about the

the game-changer and that worked in his favor. Following the Bihar’s initiative, West Bengal Chief Minister Mamata Banerjee, in the run-up to the recent assembly elections in the neighbouring state, distributed 40 lakh cycles to high school students under Sabuj Sathi scheme that is said to have contributed to her success, especially in rural areas.

Even though the Bihar government seems to have done a good job of reaching girls to school, its record in quality of education is still quite dismal. Schools suffer from poor infrastructure. For many girls who wish to study ahead, the most serious question is how to continue after class 10. Dearth of reachable 10+2 schools and colleges, along with social attitudes to marriage, aggravates their problem.

Over 3.6 million students have benefited from the Mukhyamantri Balika Poshak Yojana

Industrial Estate, is also planning expansion to cater to the market.

Though the investments in cycle plants do not run into hundreds or thousands of crores, the benefits of such plants are aplenty for a state like Bihar, which hardly has any organised industry. The state can easily become another cycle manufacturing hub after Ludhiana where over 60 per cent of the people working are from Bihar. If the cycle firms make a beeline for Bihar, www.governancetoday.co.in

girls and women in this way,” says Rajmangal Kushwaha, father of a class 10 student, adding, “We will prevail upon our villagers to prefer such leaders.” The Nitish Kumar-led Grand Alliance rode to victory with the support of the beneficiaries from the programme for which the government has spent more than Rs 1,500 crore. Even the last time, the Bihar CM had banked on this confidence among the girl child and the pride among their parents as

The bicycle initiative of the Bihar government shows that any policy or programme, which is designed to serve real need of people and implemented well, translates into tangible improvements in life of targeted population. It is because of the inherent soundlessness of the program that more states are introducing this idea with suitable modifications. ramesh@governancetoday.co.in

June 2016 I 23

COVER STORY

Well begun; but needs strengthening

DBT linked to Aadhaar is a welcome step to ensure that the benefits given by the governments reach the appropriate hands Lekshmi Parameswaran

L

ike the one rotten mango that can spoil a bag full of ripe mangoes, a negative connotation is enough to rob a word of its meaning. Poverty is one such word that has been reduced to the narrowest definition possible due to the term exploitation associated with it. The world is yet to see poverty as an opportunity for the policy makers to test their own limits and come with solutions that will have far reaching impact. The case in India is no different. Though the legislature and the executive were successful in bringing in policies, corruption slowly crept into the system rendering the entire process meaningless.

But with one policy decision the face of the entire public delivery system was changed in the country.

It was the introduction of the Direct Benefit Transfer (DBT) Scheme on January 1st, 2013 by the then ruling UPA government. The idea was to plug the myriad loopholes in the system by transferring the benefits

24 I June 2016

directly to the beneficiaries in their bank accounts. It so happened that corruption and inefficiency at all levels prevented the benefits from reaching the needy, and the poor were often left in the lurch.

Cleansing the system from within seemed to be the only solution and DBT looked apt for it. Along with this, the provision to link this scheme with the Aadhaar card which is a 12-digit unique identification number helped ensure its effective implementation. The Aadhaar number given to every citizen of the country based on demographic and biometric identification finally addressed the issues of lack of transparency and duplication in the system.

Why Aadhaar?

Ever since the decision was taken to introduce Aadhaar card in 2009, there have been debates over its feasibility. A look at the statistics published by the Unique Identification Development Authority of India (UIDAI) further

cements the claims of those who believe that in a country that is as thickly populated as India, Aadhaar might prove to be exclusionary. While in states like Delhi and Telangana, the enrolment level is over 100 per cent, in states like Meghalaya and Assam, it is less than 5 per cent. The Supreme Court’s interim orders in 2013 and 2015 stating that no person shall be denied services for lack of Aadhaar number gave the much needed reprieve for all. But what has brought to fore the question of viability of Aadhaar is the passing of the Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016 in the Lok Sabha.

There is no debating the fact that direct transfer of benefits is a much better option than providing subsidies. In a country where exploitation is rampant, there is a dire need to strengthen the system from the grass root level. And the DBT scheme looks to fulfill this purpose. Its role is the biggest and most important in eliminating the part played by intermediaries and middlemen in the transfer of benefits. The earlier scheme of giving subsidies resulted in loss to the exchequer and the citizens alike due to the involvement of multiple people and agencies.

The Public Distribution System (PDS) due to the lack of any accountability had paved the way for several ills. Hoarding and blackmarketing had become the norm with the poor at the receiving end of the vested interests involved. Since there was no proper monitoring system, people above the poverty line also had access to highly subsidized goods thus defeating the very purpose of PDS. The low prices at these government outlets also gave rise to unhealthy competition in the market as private players had to deal with the threat of artificially lowered prices.

Muni Darshan, a policy analyst www.governancetoday.co.in

gives his opinion on the issue, “Direct Benefit Transfers have the potential to be a game changer in the quest for inclusive development thought not to the extent being touted in Government circles. If done properly they would be more transparent and direct to people bypassing the bureaucratic hierarchy. Cash transfers, conditional or otherwise, helps to provide more choices to the poor.

His/her ‘unfreedoms’ reduce and this can bring about empowerment at local level. It can also provide a more targeted delivery of benefits which will provide savings. The program has also come a long way from the horrors of Kotkasim where it failed miserably”.

Is India ready for Aadhaar?

It is an open secret that the first few attempts at direct benefit transfer in India have not yielded the desired results. Here, more than the fault at the implementation level, it is the societal structure that needs to be blamed. The recognition of man as the head of the family meant that money seldom reached the women of the household. More often than not funds were diverted for activities like consumption of alcohol due to which the scheme had come to be viewed with apprehension. The problems of illiteracy and lack of connectivity once again gave middlemen a role to play, defeating the basic idea of the scheme.

Though the Pradhan Mantri JanDhan Yojna was launched with the aim of financial inclusion, it gave rise to another kind of exploitation by the appointed business correspondents. Taking advantage of the ignorance of the masses, the business correspondents saw that as an opportunity to make people open multiple accounts with the same bank.

Only a thorough study can reveal if the statistics of 21.74 crore accounts that have been opened under the scheme have actually benefited that many number of people.

“We still lack an independent concurrent evaluation system and we are still dependent on the unreliable Business Correspondent (BC) network for final delivery of the scheme.

Doubts are also over its ability to www.governancetoday.co.in

completely replace present subsidy system”, adds Darshan.

Compounding the problem is the hesitation of banks in opening a branch in an area where zero balance accounts are at a maximum.

The cost effectiveness of Aadhaar in cases like this is yet to be ascertained. There is a clear need to carry out a scientific analysis on how Aadhaar can be made functional without compromising on the aspect of governance.

The unique identification number has no doubt eliminated the problems of ghost ration cards, adulteration and leakages. But before it is linked with food security, there is an urgent need to put in

look bright. The PDS is definitely an archaic system and the time has come to shift to a more market based approach.

“Direct Benefit transfer can help in better delivery of scholarships, pensions and in welfare cash transfers. It may not be able to completely replace the present subsidy system but targeted schemes can help in getting maximum benefit from the same”, sums up Darshan.

Above all what Aadhaar can do is to bring in the ever elusive accountability and transparency to the system. The country will finally get a monitoring mechanism at the operational side that can also to a large extent address the problem of

Aadhaar can help bring transparency and accountability to the system

place the required infrastructure.

Food grains should be made accessible to the population and an ATM should be installed in every village. Also it needs to be noted that the increased inflow of cash will result in inflation. Provisions should be made to keep that strictly under check.

A look into the future The implementation of Aadhaar linked DBT is still in its nascent stage.

Out of Rs 20,000 crores set aside by the Union government for subsidies, only a third of it goes for DBT. The success of PAHAL which is the direct benefit transfer scheme launched exclusively for LPG makes the future

tax evasion. The end goal should be to do away with the multiple identity cards and have just one smart card for all purposes. Only such a step can bring about development in the most comprehensive manner. For long, we have heard of stories of how a one rupee coin erodes in value by the time it reached the poor. It is high time the value of that coin is preserved till it reached the target person; it is that person’s right. The Aadhar linked DBT is a novel mechanism which has started well; it only has to be strengthened to such a level where it can become the primary tool for financially helping poor. lekshmi@governancetoday.co.in

June 2016 I 25

COVER STORY

Setting a pioneering example

Although the launch of the second phase of ‘Operation Anantha’ hangs in balance with the regime change in Kerala, one hopes the new Pinarayi Vijayan government takes the success forward Ramesh Kumar Raja

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onsoon hits Kerala first and the southern Indian state on the Malabar Coast receives excessive rains during the season.

But what follows next brings misery to the residents. Water logging and flooding at various places, including the capital city Thiruvananthapuram (Trivandrum) which is severely hit, throw the normal life out of gear in the state.

But thanks to ‘Operation Anantha’ conceived and implemented by Jiji Thomson, former Chief Secretary of Kerala, and launched in April last year, a significant part of the state capital – particularly the areas of Thampanoor and East Fort which witnessed excess water logging – is free from the annual mess.

Faced with the problem following incessant rains in the city almost every year, former Kerala Chief Minister Oommen Chandy entrusted Thomson to roll out a plan to make the state capital flood free.

Accordingly, the then chief secretary took the task with strong resolve and created a large team at various levels of government to achieve the dream of making Thiruvananthapuram city flood free. The forward-looking project was thus named ‘Operation Anantha’ that cost a mere Rs 37 crore in the first phase of its successful implementation, which could be

26 I June 2016

considered as a tiny fraction of postdisaster expenditure, for instance in Tamil Nadu, where the government required close to Rs 5,000 crore to handle the flood situation and rehabilitation.

The execution team, led

by Thomson, studied various possible situations, including going through the pages of history of Thiruvananthapuram city to understand the old sewage system.

A plan was developed to resurrect the system as well as create various new structures for smooth flow of water through canals, sewage systems etc. Help of satellites were also taken to understand the geographical structure of the city. He directly supervised the efforts on a daily basis.

Consequently, what began as an endeavour to clean the congested canals in the capital city to avoid flooding, took the shape of an all-round effort to spruce up the entire city and went much beyond flood-mitigation measures.

It included cleaning of existing canals, demolition of encroachments over the canals, revival of existing waterbodies and wetlands in the city, construction of rainwater harvesting pits, ponds and water reservoirs.

As part of this, schemes on waste management was also rolled out, so as to clean the city from things like rusting vehicles, heaps of trash, rejects, leftovers, waste etc. The

state government also rolled out a phased ban on plastic and is attempting to do away with plastic water bottles by installing drinking water kiosks across the city.

The team of Operation Anantha also invoked provisions of the Disaster Management Act for the purpose of flood mitigation, especially in tackling the issue of encroachment. The challenge was mammoth since areas belonging to the old city of Thiruvananthapuram, which are extremely crowded, were facing the brunt of floods and water-logging the most. The problem was compounded due to huge encroachment of government lands as well as creation of various religious structures, hotels, offices of political parties etc. on the encroached area.

According to Thomson, “Operation Anantha had to face big resistance from both residents and commercial establishments initially.

It should be noted that several people had filed petitions before a court to stay the proceedings of the project. In some instances, some hard decisions had to be taken to pull down the shrines and temples at East Fort and Aryasala.

Though the first phase of Operation Anantha was implemented successfully, there are some legal tangles in terms of stay orders and plea before the High Court. For instance, the Park Rajadhani case is www.governancetoday.co.in

Jiji Thomson, the man who masterminded Operation Anantha, shares his insight over the flood mitigation drive.

Now that you are retired from the post of Chief Secretary and even the Oommen Chandy government has changed in Kerala, how do you look at the prospect of Operation Anantha this time?

True that I have demitted office and the Oommen Chandy government has gone. But no government can turn a blind eye to the need to mitigate floods in the state, especially after the successful implementation of the first phase of Anantha. We have been getting thunder showers (summer rain) for the last few days and there is no media report about any flooding in areas where the operation was carried out, whereas the other areas were inundated. The difference is there for all of us to see. The media have lauded the successful operation and has given Anantha full credit.

How can a new government overlook this? The litmus test is whether such initiatives continue to gather momentum even after the departure of its initiator. On this alone, Operation Anantha has shown the way forward.

What’s your opinion about any plan to make this initiative a national phenomenon?

If a cost effective flood mitigation drive like Anantha is carried out in other parts of the country, the central government can save huge amounts of money that is granted after the floods. After the recent Chennai floods, the Hon’ble PM announced hundreds of crores of rupees to the state of Tamil Nadu as immediate assistance. The question is whether we need to throw away those money after the floods or spend one hundredth of it before the floods to prevent it. How can any policy maker ignore such facts? I am confident that the central government will see reason and spread such operation all around. The media can play a positive role here. pending before the High Court, and vacating it is not possible now.”

The district administration braved all resistance encountered from various quarters with little interference from the government.

But the real challenge was the coordination of all the government departments to tackle a single issue plaguing the city over the years.

During the construction of the 30km drain which was passing through the heart of the city, the government had to divide the drive into eight departments. www.governancetoday.co.in

The success of the first phase of the project, which completed in February this year, has finally resonated across the state. “Nearly 600 ponds and lakes in the state were cleaned and kilometres of encroachments on drainages across small and big cities along the roadside were cleared. This has led to the widening of the National Highway from two lanes to four lanes for a stretch of six kilometres, that was stalled for close to 30 years in Pallakad district (Mannarcaud). Also, in Kannur, the cleaning up and revival

of large lakes has not only solved the issue of flooding during monsoon but also helped in improving the water table and reducing water shortage during the summer,” as per Thomson, who retired from the post of chief secretary early this year only to become the chief minister’s adviser.

Although the launch of the second phase hangs in balance with the regime change in the state, one hopes the newly-formed Left Democratic Front (LDF) government led by Chief Minister Pinarayi Vijayan takes this successful project forward.

It must be noted that the success of Operation Anantha had national scientific experts visiting the state to learn about disaster management and prevention of flooding in major cities, including Mumbai and Chennai, and other parts of the country. It has in fact become a case study for preventive measures on disaster management.

Such is the impact of the project that even Prime Minister Narendra Modi had expressed his interest in replicating Operation Anantha in other states of the country. According to Thomson, “The vice chairman of Bihar State Disaster Management Authority (BSDMA), AK Sinha, has also expressed an interest to duplicate Operation Anantha in Bihar, since this state too is vulnerable to flash floods that cause large-scale loss to lives and displacement of thousands of citizens.

He has also sought a tie-up with Kerala for effective value addition in technology and manpower.”

While the prospect of the second phase of the flood mitigation programme seems to be doubtful at the moment, if some media reports are to believed; challenges galore before the new administration make things difficult to embark on a new journey. There are a number of stay orders to deal with in courts related to drive against encroachment and illegal structures. The new government needs to act tough to carry forward the noble idea of flood mitigation pursued by the preceding dispensation to set a precedent of its own. ramesh@governancetoday.co.in

June 2016 I 27

INTERVIEW SCOTT S SINDELAR | MINISTER COUNSELOR FOR AGRICULTURAL AFFAIRS, U.S. EMBASSY, NEW DELHI

INDIA’S GROWING FOOD PROCESSING SECTOR OFFERS REAL OPPORTUNITIES U.S. India relations are among the most multifaceted and vibrant. Over last few years, the two countries have not only been trading more, they are increasingly cooperating on issues that face both countries. The agricultural cooperation between the India and the U.S. is a true example. Not only are more and more American companies investing in Indian food processing sector, tech and research collaboration between the two countries has also been on the rise. To know more on how the two countries are cooperating in agricultural matters, Anand Mishra, Editor and Rajesh Mehta, Consulting Editor, Governance Today, spoke to Mr. Scott S. Sindelar, Minister Counselor for Agricultural Affairs at the American Embassy in New Delhi. Prior to his assignment in India, Scott served as Minister Counselor at the American Embassy in Beijing and Pretoria.

Edited excerpts:

Could you share your opinion on the collaboration between India and the US in the field of agriculture?

The United States and India have a long history of working together across the entire agriculture value chain, from farm to fork. This is a reflection of the fact that both countries are global leaders in the production of a number of agricultural commodities and food products as well as important players in the global agricultural market. Considering that the world’s population will grow by another 2 billion people over the next 35 years, it is essential 28 I June 2016

that our two countries expand collaboration in the agriculture and food area.

A number of U.S. government agencies, as well as U.S. private sector companies are actively engaged with India across the broad agriculture/food value chain. For example, the U.S. Department of Agriculture (USDA) currently has programs designed to strengthen capacity for agricultural development and trade, with a focus on technical collaboration.

These include our Animal and Plant Health Inspection Service working with the Indian National Institute of Plant Health Management (NIPHM) to strengthen India’s quarantine facilities and other pest risk management measures

for export crops. Our Agricultural Research Service is working with its counterparts in India on issues such as food safety, value-added food products and co-products, range land management, genetic resource management and improvement, reduction of livestock diseases, pest and weed management, and genetic approaches to livestock and crop improvement. Also, our Forest Service is collaborating with India’s Ministry of Environment, Forests and Climate Change to promote sustainable ecosystem services. In addition, over the last fifteen years USDA’s Foreign Agricultural Service has sponsored 154 Indian government officials and private sector representatives for training and exchange visits to the www.governancetoday.co.in

United States through the Cochran Fellowship Program and 109 Indian scientists for joint research projects with U.S. scientists through the Borlaug Fellowship Program.

Processed food sector is a huge area which is yet to fully develop in India.

How can US assist in this sector?

We agree that India’s growing food processing sector offers real opportunities and see a viable food processing sector as a boon to rural communities who produce the raw material and are in the best position to capture gains from adding value to these crops.

The Ministry of Food Processing Industries (MOFPI) has an initiative to establish 42 mega food parks across the country, with a goal to increase the level of processed food from the current 10% to 20% in the next few years. Attractive incentives have been established by central and state governments to include capital subsidies, tax rebates, and reduced custom and excise duties.

The government is also encouraging disbursement of loans under a priority sector lending scheme to ensure that entrepreneurs have access to credit to set up food processing units. Within these initiatives are opportunities for American companies to provide modern food processing equipment and technologies to India. The U.S. Commercial Service and the U.S. Department of Agriculture have regular contact with large and small players in the U.S. food processing and cold chain sectors.

We are actively encouraging U.S. firms to come to India and explore opportunities in this sector.

In fact, many U.S. food processing companies are already contributing significantly to the Indian food processing sector, with major local investments and operations. Expanding the U.S. food processing footprint in India will depend largely on the interest of U.S. stakeholders. www.governancetoday.co.in

While India obviously has a large domestic market, the domestic policy and regulatory environment that facilitates research and development, investment, the commercialization of market-based solutions, and trade are also critical factors when U.S. stakeholders make commercial and investment decisions. We believe that any food processing industry becomes much more viable when it also has the freedom to procure high-quality, low-cost inputs and ingredients from international suppliers. Using the power of the global market to source critical inputs will help drive quality improvement, make the industry more stable over time, and generate market efficiencies and opportunities around the world.

Other important factors include

In fact, many U.S. food processing companies are already contributing significantly to the Indian food processing sector, with major local investments and operations helping to add infrastructural value. For example, later this year, USDA will sponsor a technical exchange program on post-harvest management under the Norman Borlaug Fellowship Program. The program will focus on issues such as value addition, food packaging, food safety and quality, and postharvest loss prevention.

Climate change has forced weather patterns globally. How can food security be ensured in such an environment?

The Paris Agreement aims to hold “the increase in the global average temperature to well below

2°C above pre-industrial levels” and calls upon countries to make best efforts to limit warming to 1.5 degrees. The second part is particularly important because even if we meet the two degree ceiling, climate scientists estimate that crops yields in the U.S., India, Africa, and elsewhere could decrease by as much as 30 percent.

Fortunately there are a few things upon which we can focus in an attempt to limit warming to 1.5 degrees.

• First, we can aim to push the Paris Agreement into force early. While the formal implementation of the Paris Agreement is from 2020-2030, the agreement actually could go into effect far sooner than that. There is a little noticed provision in the Agreement that says: as soon as 55 countries representing at least 55 percent of global emissions formally join, the Agreement will enter into force.

• Second, all countries can seek to lock in even more climate ambition now. For example, in December, President Obama worked with Congress to secure a long term extension of tax incentives for renewable energy, such as wind and solar.

• Third, we can work to ensure the Paris Agreement becomes an enduring and irreversible market force. Just getting an agreement sent a powerful statement that clean energy is the energy of the future. But we can do more by replicating the White House’s Businesses Act on Climate Pledge.

Companies like ABENGOA BIOENERGY US, Fulcrum Bioenergy, International Paper, and scores more have pledged to demonstrate an ongoing commitment to climate action.

One way the U.S. is doing this is by considering how forests, wetlands, and grasslands function as “carbon sinks” to offset emissions elsewhere.

Ultimately, food security in the face of climate change will depend June 2016 I 29

on our ability to adapt to new weather conditions, to develop and adopt innovative agricultural technologies, and to ensure effective, functioning markets that facilitate the production, processing, distribution and trade of agricultural commodities and food products.

Farm sector has been a big area of contention between developing and developed world. How do you think India and the US can work together in this area at forums like WTO? The United States is prepared to bring its energy and creativity to revitalize negotiations in the WTO. But it is important that at this juncture we take a broad view of potential issues and approaches in our future negotiations. The field is open to new thinking – whether on multilateral, plurilateral or sectoral approaches, or new issues in agricultural altogether. One of the major concerns of developing countries is food security. To address this concern, we must encourage the flow of agricultural and food trade by lowering tariffs and reducing trade barriers.

Trade substantially increases food security by making more types of food widely available, increasing a population’s access to food, and allowing food to be available yearround.

India and the U.S. have often been at odds as far as farm subsidies are concerned. How can the two solve this issue?

As noted earlier, we are faced with the global challenge of feeding an additional 2 billion people by 2050. The key to a strong international agricultural system that will allow both our countries to help meet the challenge of 30 I June 2016

the expanding global demand for food remains the same: we need a strong, predictable, rules-based agricultural and trade policy system that allows producers to respond to market signals and facilitates trade while ensuring the health and welfare of producers and consumers. Continuing to discuss these issues on a bilateral and multilateral basis is essential.

We need a strong, predictable, rulesbased agricultural and trade policy system that allows producers to respond to market signals and facilitates trade while ensuring the health and welfare of producers and consumers Agricultural research has been an important aspect of cooperation between the two countries in recent years. Could you throw some light on the initiative?

Our governments are exploring avenues for enhancing our bilateral cooperation on a number of technical issues, to include bioenergy, crop forecasting, biotechnology, climate-smart agriculture, and others. U.S. Land Grant universities and private sector stakeholders are also potential partners for building capacity, expanding technical expertise, and providing high-quality food ingredient and industrial inputs.

In addition to various public and private sector cooperation, the United States and India have also worked well together on international initiatives to

raise technical capacity. Last December, USDA and the Ministry of Agriculture’s NIPHM concluded a multi-year collaboration to help prevent the introduction and spread of plant pests globally.

Our governments provided phytosanitary training and other services to 474 people, including 81 international participants, from 13 different countries.

What is your opinion about India’s agricultural policy and how you think it could be made more robust?

India is rightly proud of its achievement in becoming a major producer of key cereal and other food crops, especially wheat and rice that allowed the country to overcome the food security challenges it faced 50-60 years ago.

Consecutive deficient monsoons, recent price volatility in a number of commodities, growing awareness over agriculture’s impact on India’s water resources, the inevitable transition of farm employment to non-farm jobs and related concerns over the rural economy have focused much-needed attention on India’s current agricultural policies. As a result, it seems to me that India is already on a path to reform and adapt its existing agricultural policies to better reflect the current domestic and global situation and to better meet the needs of India’s citizens. The new crop insurance program, building a national agricultural market, and encouraging FDI in food processing are all indicators that India is gradually moving toward a more market-oriented agricultural production and distribution system.

These and other measures that may follow have the potential to more efficiently allocate India’s natural resources, especially water and land, and to better utilize its human and financial capital in the production of food.

www.governancetoday.co.in

POLICY

Bringing clarity to charity in India Pratik Dattani

I

ndia is now an important global economic power. This is partly due to external factors like the slowdown in China but also due to internal factors like India being set to enter an era of more inclusive growth. Significant progress is likely to be visible in the coming decades in terms of growth percolating to more people in society.

While this progress can be attributed to changing growth dynamics in states and a greater emphasis on the untapped potential of rural India, the CSR rules in the Companies Act 2013 will play a role too.

Historically, there has been broad industry participation in corporate responsibility, and societal values are ingrained into core business structures of many of the largest businesses in India.

But the Companies Act 2013 has made far-reaching changes, including with companies now having a mandatory financial obligation to contribute to remediating India’s social problems.

For the first time, the Board need to be represented on a CSR committee, putting social responsibility firming in decision-makers’ agendas.

For the largest companies, there may be an awareness of their social obligations already, and structures in place which enable this in a highimpact manner.

But the real potential will come from the next tier down, that are impacted by the law, but do not have the best practice thinking and implementation in place to ensure the monies are spent in the most effective manner.

There are plenty of industry organisations and consultants that www.governancetoday.co.in

can help, particular in the health and education sectors where the greatest NGO capacity exists.

However, there is no pan-India “clearing house,” where donors can express their preferences, and charitable causes which have been through a due diligence process can easily be presented as investable options.

There are some of course that exist on a smaller scale, such as Give India and in the US, Charity Navigator. But there are barriers to entry for creating such a portal in India, not least because charities do not have their audited accounts published online by a sector regulator, like they do for example in Britain.

There are other reasons too.

Soliciting donations for some areas (such as religious causes) is generally good business in India, but the charitable accountability is by and large missing. Charities and trusts often do not have professional teams in place to manage funds and operations, and often operate in grey areas in terms of accountability.

One start-up is looking to change this. Charity Navigator has a database of more than 8,000 of the largest US charities, but this focuses very much on audited financial data, which may not be easily available

in India. So Charity Clarity, a British tech start-up, is looking to empower donors with information not just on financial health, but also several other factors.

One of these is sentiment analysis, which uses natural language processing, text analysis and computational linguistics to identify and extract information about the charities on the internet.

In other words, feedback about the charity on Facebook, favourable mentions by larger organisations and greater engagement with stakeholders can help the charity be better rated.

Combined with information about its trustees, quality of its accounts and a wider financial health-check, this can provide any donor helpful advice on what can

be spent where in a manner to maximise social impact. One such Indian charity actually won an award for its high impact work.

Whether it’s this charity tech start-up or another, the sector in India is moving into the right direction–companies will invest more into CSR (particularly social infrastructure such as education and health), and they will expect the recipients to be effective, transparent and accountable.

This can only be a good thing in building a more inclusive growth story for India.

The writer is the Managing Director of EPG Economic and Strategy Consulting, London and Director-UK at FICCI

June 2016 I 31

ECONOMY

Getting regional

In wake of faltering WTO talks, India tries to get into Asia Pacific trade blocs

Both TPP and RCEP could emerge as drivers of regional growth

Anand Mishra

E

xternal trade has always been a troublesome aspect of Indian economic landscape.

The legacy of inward looking policies guided by the philosophy of self sufficient has ensured that even two and a half decades after the beginning of economic liberalization, India is not fully geared up to integrate with the rest of the world in terms of trade.

Even though the trade as fraction of GDP has increased sustainably, the country still does not approach trade as a crucial and natural part of the economic machinery. This in essence prevents Indian merchandise from exploiting global market on the one hand and on the other, does not allow domestic industry to fully benefit from the global value chain. The importance of trade can 32 I June 2016

therefore, not be overemphasized.

However, the global trade regime has over the years increasingly got bogged in endless discussions over controversial issues, leading important global economies to instead focus on regional trading arrangements.

These trading blocs help in deriving benefits of trade without burden of excessive negotiations and disparate partners, thus resulting in faster implementation and more efficient gains. This explains the rise of multiple trading blocs over years. Leading economic blocks, namely North America, Europe, Japan and China have all moved towards forging large trading blocks of late. Especially important from Indian perspective are those taking shape in East Asia and Pacific region as India looks eastwards to benefit from the dynamism of the region.

Last month, while speaking in a conference, Finance Minister Arun Jaitley said that India was open to joining the Asia Pacific Economic Cooperation (APEC). “There are efforts underway to make India a part of APEC. We are open to joining the forum,” Jaitley said. He also said that “various other tie-ups which are taking place, depending on what our interest is, I think we are fairly open to them. And you can’t claim to be one of the fastest growing economies of the world and then not think of trade as a winwin option.” This was the strongest assertion by any Indian government indicating India’s desire to get into the 21 member economic block that accounts for over 40 per cent of the global GDP. His statement also assumed significance in wake of the introduction of a bill in the US Congress asking Obama www.governancetoday.co.in

administration to help India join APEC, by lawmakers who said that allowing India to join APEC will help America’s strategic goals in Asia.

What India stands to gain Since early nineties, India has increasingly focused on East Asian region for economic engagement.

As an extension of Narsimha Rao’s Look East policy, Narendra Modi has embarked on the Act East Policy which aims to build on the works of previous governments by adding strategic angle to the increasing economic engagement with the region. Membership in the existing regional trading blocs like APEC and those currently in negotiation like RCEP and Trans-Pacific Partnership (TPP) will assist India in multiple ways that would feed into other flagship schemes of the government of India, such as Digital India and Make in India.

First and foremost, the Asia Pacific region could emerge as the largest market for Indian goods

and services and membership of regional groups will ensure freer entry to this market with relatively lesser number of rules to negotiate.

India is negotiating FTAs with many individual countries in the region and will prefer to have uniform tariffs and rules for multiple trading partners of the region. Second, India could gain by integrating with the global value chains (GVC) which will bolster the manufacturing sector in the country. The record of APEC is an example. According to World Trade Report 2014, 10 APEC members had among the highest GVC participation index. Third, as domestic industry gets plugged into the regional production network, investments would flow into those areas in which India has competitive advantage. Finally, it will open avenues for Indian IT and IT enabled sectors, to tap into the manufacturing led services demand of the region.

Realizing these potential benefits, India has been trying to get into the Asia Pacific trading blocs.

It requested APEC membership in the late 1990s but its request was not considered because of a moratorium on new members initiated in 1997. This moratorium was lifted in 2010, and since then India has been crystallizing its opinion on requesting again for membership. Things are looking up for India now as US has been more forthcoming in its support for India’s membership. Of late, some other APEC economies, including China and Japan have also acknowledged India’s importance to the region.

But unlike APEC, India is already a negotiating partner of Regional Comprehensive Economic Partnership (RCEP), which is basically a Chinese initiative. RCEP is a free trade agreement (FTA) negotiation between the ten members of the Association of Southeast Asian Nations (ASEAN) and the six nations with which ASEAN currently has FTAs –China, Japan, Australia, Korea, India and New Zealand. The group builds on the FTAs that each of these six countries have with the ten

Many sectors of India including automobile can benefit from freer trade

www.governancetoday.co.in

June 2016 I 33

member ASEAN. RCEP negotiations are covering trade in goods, trade in services, investment, economic and technical co-operation, intellectual property, competition, dispute settlement. Yet another and even more ambitious project is TPP which is an American initiative and aims to create a mega trade bloc in Asia Pacific region which will account for a large chunk of the global GDP besides high share of global trade in goods and services. There is some overlapping here as seven RCEP countries including Australia, Japan, Singapore and Malaysia are part of TPP.

Tough road Even though India is shedding its

hearted approach. There are also concerns about India’s political resistance to next level of domestic reforms which would make doing business in India easier.

On the other hand, Indian government has tried to drive home the point that it is not against free trade and has cited its track record in opening different sector for foreign investments. In this regard, it is important to note that India has shown much flexibility on issues related to investment and services in its offer to RCEP, which could be important for discussions in cases of other trading blocs as well as bilateral FTAs under negotiation.

According to some reports, issues like intellectual property rights (IPRs) and e-commerce

India needs to protect interests of poor people

reluctance to join regional blocs, it is not perceived as willing enough to open its markets. According to a report of Asia Society Policy Institute, some APEC members view India as being reluctant to open markets. India’s reviews of its FTAs and its inability to conclude bilateral investment treaties (BITs) are seen as examples of its unwillingness to come to a common ground with trading partners. In case of RCEP, many countries, from ASEAN as well from six FTA countries are reported to be unhappy with India’s half 34 I June 2016

could emerge as areas of major disagreements. For example, India is not very happy with Japan’s bringing e-commerce to the RCEP table. It is also apprehensive on the impact on its pharma sector of more stringent IPR norms which some countries like Japan and South Korea want to be part of the final deal. Yielding ground on some of these issues could have severe impact on not just domestic industry, but also on the government’s social commitment to ensure cheaper life saving drugs for poor.

Some experts also believe that India needs to be cautious on opening services sector as there could be very limited gains for India in it. They also feel that India should push harder on some of the Mode 4 issues such as movement of professionals, on the table as these are highly important to India. ASEAN is unwilling to bring these issues under the deal ambit.

As WTO negotiations falter, there is no question that India will have to assess its options with respect to regional trading blocs.

So far, India has relied on bilateral FTAs but those have neither helped India break open bigger markets for its products or services, nor have allowed it benefit from integrating with global production chain. As world’s major economies actively try to bypass WTO via trade blocs to gain from global trade in goods and services, India must try to get into existing trade blocs like APEC and negotiate entry in those blocs that are currently in formative stage, including RCEP and TPP. However, India needs to tread carefully while pursuing its chances in these mega blocs. Because of inherent economic dynamics of the country, which suffers from widespread poverty and broadly inefficient and uncompetitive industry, India needs to open its gates with caution and imagination.

Simultaneously it needs to harness the gains that accrue from greater integration in the trade. There is no place for inefficiency in modern economic paradigm and Indian industry needs to be strengthened to face the competition. Needles to say, the government itself will have to start the process by delivering sound physical and administrative infrastructure. Domestic economic reforms are also a must for bringing down cost of doing business which is making Indian companies uncompetitive to a large extent.

At the same time, there are some extremely important issues like agricultural subsidies and pharma relevant IPRs on which India must protect its interests. anand@governancetoday.co.in

www.governancetoday.co.in

INTERVIEW AJIT JAIN | CANADA EDITOR, THE INDIAN DIASPORA

INDIA-CANADA RELATIONS HAVE REACHED THE STAGE OF NORMALCY

Ajit Jain is a who-is-who in India Canada relations and Indian Diaspora in Canada. A veteran journalist of over three decades experience, he was the Managing Editor of India Abroad weekly from 1985 to 2013. Since then he has been the Canada Editor of the Indian Diaspora. Besides these, Ajit has written for the Globe and Mail, Toronto Sun and the Khaleej Times. He has published the A-Lists (January 2015 and January 2016) which profiles 50 eminent Indo-Canadians, Friends of India, and Indo-Canadian academic, business and charitable organizations. Ajit was awarded Queen’s Diamond Jubilee Medal (Sept 2012) as well as Gandhi Peace Award from McMaster University’s Centre for Peace Studies (2012). In a conversation with Rajesh Mehta, Consulting Editor, Governance Today, Ajit talks about his journey and Indian Diaspora in Canada.

Edited excerpts:

How did the idea of A-List come to your mind and what do you want to project with this Publication?

I have been reporting on the Indo-Canadian Diaspora for over 32 years. I have seen closely how the community, from days of ‘Pakis go home” has slowly, slowly reached a stage where there are outstanding successful people in all conceivable fields. So, I said to myself why should their stories not be shared widely. That’s how the idea of first the Power List, and now the A-List started.

Could you tell readers about your 2015 Publication of A-List and 2016 Publication of A-List?

These publications tell stories of successful Indo-Canadians in various disciplines who have, www.governancetoday.co.in

through their hard work and determination succeeded in their respective fields and have now become mentors, leaders in their own rights.

Could you tell readers about the Power List which came out in 2008, 2009 and 2011?

The Power Lists were the same as the current A-Lists. The Power Lists were published by India Abroad where I was then the Managing Editor. The A-Lists are more comprehensive and in these I have added an additional section “Friends of India” who are not IndoCanadians but work very closely with Indo-Canadians and are actively promoting Canada-India close ties.

You headed India Abroad for a very long time. What were the major takeaways from this experience?

provided me with an opportunity to be working so very closely with the community, reporting on ups and downs in the community, progressively more ups than downs, reporting on internal strife in the community results of horrible Air India tragedy of June 1985, etc.

India has a very strong Diaspora in Canada.

How is it influencing Indo-Canada Relations?

India-Canada relations have reached the stage of normalcy.

There are no major issues between the two countries.

And a great deal of credit for this goes to the Indo-Canadian community. There are currently four Indo-Canadians in the federal cabinet. There are 20 Members of Parliament. There are members in the State legislatures, so also Ministers in provinces.

No takeaways. The position June 2016 I 35

WILDLIFE

Rethinking tiger population With just 10 to 20 per cent of world’s potential tiger habitat of 1.2 million sq km, India possibly harbors over 70 per cent or more of world’s tigers Sagarika Ranjan

E

veryone is overjoyed as the roars of the wild cats have gone more frequent. India has reportedly registered an increase in tiger population. Longterm efforts of several sections of the society – Government organizations, NGOs, and wild

conservators besides others – finally appear to be paying off.

Lovers of the wild from all over; departments concerned and their staff came together to celebrate this rise in the tiger population and at the same time discuss the issues that still threaten our tigers.

The occasion was the Third Asia Ministerial Conference on Tiger

Conservation, organized on April 12 in the national capital. This event was held in the wake of a report, released on April 10, by the World Wildlife Fund (WWF) and Global Tiger Forum (GTF).

As per the report, the world’s wild tiger population was on the rise, and on track for a doubling in a decade. However, there are

NO SUPPORT REPORT

36 I June 2016

Tiger biologists have refuted the April report stating that the world’s wild tiger population was on the rise, and on track for a doubling in a decade

Translating spoor counts to tiger numbers poses several statistical problems that, if unresolved, can lead to fundamentally flawed claims of changes in tiger numbers

Taking these estimated tiger numbers at face value, simple calculations show that doubling of the world’s tigers in ten years as hoped for in the report is not a realistic proposition

Assuming 70 to 90 per cent of wild tigers are in source populations with slow growth, such an anticipated doubling of global tiger numbers would demand an increase between 364 to 831 per cent in these sink landscapes which is believed to be an unlikely scenario

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several tiger biologists who have refuted the findings of the report.

They are questioning the survey methodologies and the basis of the findings regarding the rise in the wild cat’s population.

According to tiger biologists, there is no doubt that wildlife managers in parts of India and even in specific reserves in South East Asia and Russia have made commendable conservation efforts, leading to recoveries in specific tiger populations. India has invested massively in recovering several tiger populations over the last four decades. This has been possible because of strong political, administrative and public support rarely matched anywhere else.

They explain that such sporadic tiger recoveries should be monitored using statistically robust camera trap or DNA surveys.

Rigorous scientific studies in India, Thailand and Russia demonstrate that this can indeed be done.

However, these studies also indicate that tiger recovery rates are slow and not likely to attain levels necessary for the doubling of wild tiger numbers within a decade.

With just 10 to 20 per cent of the world’s potential tiger habitat of 1.2 million square km, India possibly harbors more than 70 per cent or more of world’s tigers. India has invested more money, manpower, political will, and public support for tigers, right from 1970s, than any other tiger country. As a result, in some regions like Western Ghats, Central India and Terai region tiger population has rebounded-with ups and downs at specific reserves, of course over a period of 40 years, informs Ullas Karanth, Director for Science, Asia-Wildlife Conservation Society.

As per the official website of the 3rd Asia Ministerial Conference (3AMC) on Tiger Conservation, tiger population has definitely seen a rise but the status of the wild tiger across the Tiger Range Countries continues to remain grim. Though there have been some gains on the conservation front during the last few years, as seen in the population build up in some Tiger Range www.governancetoday.co.in

Since tigers extensively use manmade dirt roads and trails, their tracks are often less detectable. Thus, the numbers always stand a chance of being incorrect

Countries, the global scenario remains a cause of major concern.

The alarming issue of tigers having become locally extinct in some of these Tiger Range Countries surfaced during the deliberations in the 3AMC. One main reason cited for this was the rapidly shrinking habitat and low availability of prey.

This is a serious limiting factor in achieving the Tx2 goal within the timeline envisaged. The situation calls for a differentiated strategy to deal with the issues of the Tiger Range Countries.

According to a study: Methods in Ecology and Evolution, “Since tigers extensively use man-made dirt roads and trails, in areas where human population densities are high and tiger densities are low, tiger tracks are often less detectable because of extensive movement of vehicles, people and cattle along the same track. If this is the case, then we encounter two problems: first that there is a lack of identifiability and, secondly the abundance index versus actual abundance relationship is no more linear. Thus the numbers always stand a chance of not being good enough to set a

Source: WPSI June 2016 I 37

Tigers are fighting for their survival in our sinking green space. If the population actually doubles where is the place to provide for them? The problem remains the same and we get back to square one.

mark. Tiger biologists explain that current estimates of tiger numbers for large landscapes, regions and countries, are largely derived from weak methodologies. They are sometimes based on extrapolations from tiger spoor (tracks and droppings) surveys, or spoor surveys alone. While spoor surveys can be useful for knowing where tigers occur, they are not useful for reliably counting their numbers. Translating spoor counts to tiger numbers poses several statistical problems that, if unresolved, can lead to fundamentally flawed claims of changes in tiger numbers.

Source populations of tigers that occur at high densities and which are likely to produce ‘surplus’ animals that can disperse and expand populations now occupy less than 10 per cent of the remaining 1.2 million square kilometers of tiger habitat.

Almost 70 per cent of wild tigers survive within these source sites.

They are recovering slowly, only in some reserves where protection has improved. Outside these source sites lie vast ‘sink landscapes’, which are continuing to lose tigers and habitat due to hunting as well as developmental pressures.

An officer at Bandhavgarh tiger reserve in Madhya Pradesh explains that tigers are more susceptible as they like to live alone. Two tigers 38 I June 2016

cannot live in the same area. They have defined boundaries and if two happen to be in the same area, only one survives.

There are cases where the tiger has killed its own cubs. It mostly

The problem remains the same and we get back to square one as they will fight among themselves and again the population will decline.

There is a lot to be done beyond monitoring numbers and allocating reserves. There is a need to increase the green spaces on our planet, especially in the Tiger Range Countries.

Karanth and other tiger biologists say, “With the above considerations in view, even taking these estimated tiger numbers at face value, simple calculations show that doubling of the world’s tigers in ten years as hoped for in the April 10 report is not a realistic proposition. Assuming 7090 per cent of wild tigers are in source populations with slow growth, such an anticipated doubling of global tiger numbers would demand an increase between 364-831 per cent in these sink landscapes. We believe this to be an unlikely scenario.”

They add that rather than engaging in these tiger number games, conservationists must now focus on enhancing and expanding

‘Tigers are more susceptible that other wild animals as they like to live alone.

Two tigers cannot live in the same area. They have defined boundaries and if two happen to be in the same area, only one survives’

happens when the tigress denies mating as she is busy caring for the cubs. At times, tigresses have been seen going ahead with false mating just to protect the cubs.

With such behavioral traits, fighting for their survival in a shrinking green space is a huge challenge. Even if the population actually doubles in a decade where is the place to provide for them?

recovery and monitoring of source populations, while protecting their remaining habitat and their linkages, all the while being guided by the best of science.

If we have to save our tigers we need to take genuine steps towards saving the sinking landscape across the globe. sagarika@governancetoday.co.in

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June 2016 I 39

FINANCE

Making way for easy exit The Bankruptcy and Insolvency Code, cleared by Parliament, will make it easier to exit or revive a business. It would also help reduce NPAs in the financial services sector Mamta Binani

F

inance Minister Arun Jaitley had announced the development of an effective Bankruptcy Code for easy exit in his 2014-15 Budget speech.

After this announcement, the Viswanathan Committee was set up on 22 August 2014 to study the country’s corporate bankruptcy legal framework. Incredibly, a comprehensive Bankruptcy & Insolvency Code 2015 (the Code) was introduced in Parliament within a short span of time, after public consultations to consolidate individual insolvency, insolvency of LLPs (limited liability partnerships), unlimited liability partnerships and corporate insolvency.

A Joint Parliamentary Committee (JPC) of both Houses of Parliament then scrutinised the Code. On 28 April 2016, their

40 I June 2016

report was presented to the Lok Sabha and sent to the Rajya Sabha the same day. The JPC resolved certain unaddressed issues in the Code introduced in Parliament, which included provision for crossborder insolvency, participation of operational creditor in insolvency proceedings, inclusion of public financial institution under the ‘financial institution’ definition, rationalisation of timelines visà-vis various steps in insolvency resolution, rectification of drafting errors and removal of a clause relating to registration bond and performance security by an insolvency professional.

With the Code, it will now be easier for financial institutions and banks to address NPAs (nonperforming assets) due to failed corporate ventures, while easing revival or painless liquidation. The new law will facilitate time-bound

settlement of insolvency, drive faster turnaround of businesses and create a data base of serial defaulters – all critical in resolving India’s bad debt problem that has crippled bank lending.

Amendments and reforms The Code will repeal the Presidency Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920 and amend 11 legislations, including the Companies Act 2013, The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, and The Limited Liability Partnership Act 2008. Policy-related aspects will also be addressed in the Code, while procedural aspects are dealt under delegated legislations for flexibility.

In the Code, positive attributes www.governancetoday.co.in

have been imbibed from the Bankruptcy System in the US and the UK – such as a moratorium period during the resolution process, time-bound insolvency process, etc. But aspects such as lifting of moratorium in case of fraud, option for management of affairs by corporate debtor under supervision, etc. have not been addressed. Moreover, Chapter 11 of the US Bankruptcy Code provides for debtor in possession concept – in other words, the debtor will continue to manage the company’s affairs during insolvency resolution. Management of affairs will be by an insolvency resolution professional, similar to the UK Bankruptcy laws.

Interestingly, in its 1999 report, the Justice Eradi Committee identified 473 winding-up cases pending for more than 25 years.

Analysis of companies under liquidation as on 31 October 2015, furnished by the Department of Financial Services, indicates there were 1,479 pending winding-up cases for more than 20 years, indicating relative threefold increase in data of winding-up cases still pending. The causes could be varied: due to delays in deciding on the viability of businesses, tactics employed by promoters to delay reorganization or attempts to sell off assets, management changes or endless litigation. Consequently, the drag on new business units, jobs, income generation and economic growth could be significant.

Presently, the High Courts, CLB (Company Law Board), BIFR (Board for Industrial and Financial Reconstruction) and the DRT (Debts Recovery Tribunal) possess overlapping jurisdiction, giving rise to systemic delays and complexities. The Code will overcome these challenges and reduce the burden on Courts as all litigations will be filed before NCLT (National Company Law Tribunal) for corporate insolvency and insolvency of LLPs, while DRT will be for individual insolvency and that of Unlimited Partnership firms. www.governancetoday.co.in

Minimising delays and NPAs As the Code tries to create a formal Insolvency Resolution Process (IRP) for businesses, either by introducing a viable survival mechanism or by ensuring speedy liquidation, it will seek to substantially curb numerous longpending cases. The Code envisages a new regulator, the Insolvency and Bankruptcy Board of India, while introducing insolvency professionals to handle insolvency cases and

action is decided. Within 180 days, 75 per cent of financial creditors need to agree on a revival plan. If not, the firm automatically goes into liquidation. If three-fourths of financial creditors consider the case complex and one that cannot be addressed within 180 days, the adjudicator may grant one-time extension of up to 90 days on the process.

The Code will ensure swifter resolution of NPAs, particularly in PSU banks. Indeed, the Financial Stability Report issued in 2015 by

HIGHLIGHTS OF THE INSOLVENCY AND BANKRUPTCY CODE 2016 • Insolvency and Bankruptcy Board of India to be set up as the regulator • Insolvency professionals and insolvency professional agencies to be regulated • Three sets of Resolution Professionals sought to be appointed – Interim Resolution Professional, Final Resolution Professional and Liquidator • Insolvency Information Utilities proposed which would collect, collate, authenticate and disseminate financial information from listed companies as well as financial and operational creditors of companies • The Debt Recovery Tribunal (DRT) to be the adjudicating authority with jurisdiction over individuals and partnership firms other than Limited Liability Partnerships • The National Company Law Tribunal (NCLT) to be the adjudicating authority with jurisdiction over companies, other limited liability entities (including LLPs.) insolvency professional agencies to manage overall supervision of the Insolvency Board. The Code also has information utility to collect, collate, authenticate and disseminate financial information from listed companies, and financial and operational creditors of companies. This will help make insolvency resolution smoother by maintaining all financial information about companies.

A corporate debtor who has defaulted on dues or creditors, financial or operational, could initiate the IRP. During the process, creditors’ claims will be frozen for 180 days, when proposals for revival are heard and the future course of

the RBI reveals corporate sector vulnerabilities and the impact of their weak balance sheets on the financial system which requires close monitoring. The time-bound insolvency resolution process will help the financial services industry function better.

The new Bankruptcy laws accept that business ventures can fail and allow entrepreneurs to make a new start. While allowing failed firms to close down painlessly, the Code could pave the way to their resurrection too.

The writer is the President of the Institute of Company Secretaries of India (ICSI) June 2016 I 41

POLLUTION

Half-baked initiative?

Uttar Pradesh Pollution Control Board’s recent initiative to curb air pollution from brick kilns is unlikely to succeed Ramesh Kumar Raja

A

t a time when an assortment of measures is being taken to rein in air pollution in the national capital, Delhi and its adjoining areas which constitute the national capital region (NCR), the Uttar Pradesh government’s endeavor to reduce pollution from brick kilns seems a tad ill baked. To tackle the menace of air pollution taking place because of the smoke belched out by brick kilns, the Uttar Pradesh Pollution Control Board (UPPCB) has issued a notice to brick entrepreneurs of Ghaziabad, Gautam Budh Nagar and Hapur. The notice directs brick kilns in these three districts to convert from natural draft kilns to induced draft kilns in 90 days. The step has been ostensibly taken to reduce air pollution from brick kiln sources, to improve the air quality in Delhi and NCR. It is estimated that the brick kiln sector is the fourth largest contributor to PM10 emissions in the national capital region after transport, road dust and thermal power plants. While brick manufacturing has been banned in Delhi, it has thrived in areas surrounding the capital; the NCR’s massive thrust on construction has given it the boost. There are around 700 brick kilns in the three districts of Ghaziabad, Gautam Budh Nagar and Hapur. Most of these kilns are natural draft Bulls Trench Kilns.

There are different types of brick making technologies which vary in terms of bricks arrangement, feeding of fuel and air flow.

The basic difference between a natural draft and induced draft kiln is that whereas in natural draft brick kilns, air flow for distribution of heat is done by a chimney whereas in induced draft brick kilns, the air flow is controlled by a fan.

“The UPPCB has rightly identified brick kiln as an important source of air pollution,” says Chandra Bhushan, deputy director general, Centre for Science and Environment (CSE). “However the technological solution suggested – changing over from natural draft to induced

42 I June 2016

Brick kilns are a major source of air pollution in Delhi NCR

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draft – is inadequate and will not lead to reduction in pollution. It is very likely that the majority of the kiln would adopt a short cut by fitting a dummy fan which will never run.”

“The notification should have also addressed issues such as arrangement of bricks, fuel feeding mechanisms and air flow which are very important factors to ensure pollution reduction,” adds Bhushan.

In addition, the notification should also include a change-over to fly ash brick manufacturing, point out the CSE researcher.

Experiences from other states suggest that pollution reduction from kilns working on induced draft has not been satisfactory. Worse still, in view of erratic power supply, kiln owners will have to run a diesel generator set to operate the fan if they shift to induced draft kilns, which will add to the pollution.

Fly ash bus missed The UPPCB notification also misses the opportunity to move brick kiln operators of NCR to fly ash brick making.

Power plants in and around Delhi have huge stocks of unutilised ash in their ponds which is also one of the

UPPCB notification misses the opportunity to move brick kiln operators of NCR to fly ash brick making

major contributors to air pollution in Delhi-NCR. During summer, coal and fly ash contribute about 30 per cent of PM10 emissions. A CSE analysis shows that the pond ash availability in Dadri and Badarpur is around 12 and 12.5 million tonnes respectively.

Ghaziabad, Gautam Budh Nagar and Hapur together supply nearly two billion bricks to New Delhi and surrounding regions – these bricks have a potential to utilise over 2 million tonnes of fly ash.

EMISSION AND ENERGY CONSUMPTION OF VARIOUS TYPES OF KILNS Draft style

Natural Draft

Induced Draft

Technology of brick kiln

SPM emissions (in Specific energy mg/Nm3) during consumption (in charging of fuel SEC) MJ/kg of fired bricks

Bull’s Trench Kiln using coal located in north zone

517-1,375

1.18-1.32

Zig-Zag (using coal and petcoke) located in Uttar Pradesh

155

1.08-1.10

Vertical Shaft Brick Kiln (using coal) located in east and central India

452

0.9

119-147

0.92-1.06

Zig-Zag (using coal and petcoke) located in north zone

There is adequate technical understanding and experience available in the country today to reduce pollution from the brick kiln industry. “The UPPCB and the brick kilns owners can use these to make the right technological choices that will help in reducing air pollution in the NCR as well as modernise the brick industry,” says Bhushan.

The UPPCB needs to come up with a clear technological roadmap for the brick sector, to effectively contribute towards curbing air pollution.

Experts recommend that the notification should be amended – it should state that the existing natural draft Bulls Trench Kiln should be replaced with cleaner technologies such as natural or induced draft Zig-Zag Kiln, VSBK, Hoffman or Tunnel Kiln. Other details such as arrangement of bricks, air flow and fuel feeding mechanism should be clearly mentioned. In addition, the notification should also encourage a change-over to fly ash brick manufacturing.

The State Pollution Control Boards of Haryana and Rajasthan too need to identify brick kilns as an important source of air pollution and direct them to switch to cleaner technologies. ramesh@governancetoday.co.in

Source: CPCB www.governancetoday.co.in

June 2016 I 43

EDUCATION

Time for a coherent education policy framework Dr Jitendra K Das

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ndia will be one of the youngest nations in the world with almost 140 million individuals in their 20s by the year 2030. India, thus, has the potential to have one in every four graduates of the world to be a product of Indian higher education system. Education is an essential tool for achieving development and sustainability. In this context the quality of higher education becomes increasingly important as India strives to compete and integrate with globalised economy where highly qualified, innovative and creative professionals are required.

Our higher education systembe it government universities or the private universities or self-financed institutions- operates in a pincerlike-grip of regulations. Only the IIMs and IITs, both outside the traditional Indian university system, have the autonomy and flexibility of various decision-making and both set of institutions have done India proud.

Many of the higher educational institutions in India have dropped abysmally low in quality delivery in the last few decades. For, they have become rule fulfillers and not deliverers of quality education.

This typically is the outcome in an organization where the decision makers are not accountable for poor performance. Most of the universities neither get sufficient fund from the government, nor can raise funds to meet their development and research needs. Thus, the ability of most of the Indian universities and Institutes of higher learning in India is unfavorably blunted due to extremely limited flexibility in their decision making process due to various governance issues. This creates a wide gap in what is the desirable outcome and what is actually delivered by these universities and institutes of higher 44 I June 2016

learning in India.

To meet the huge unmet demand for joboriented education and training the government must ‘free-up’ the government universities and institutions and Institutions like IIT have gained excellence partly encourage, through because of autonomy appropriate policy interventions, private sector to actively contribute initiatives have been launched by the to the higher education. However, Government of India (GOI) recently in instead of encouraging the role of its endeavor to not only make India a private sector in higher education, manufacturing hub but also to make the public policy so far seems to be her economic growth more inclusive. quite unfriendly and discouraging to These forces have increased the the private sector with conflicting demand for professional managers signals coming from various higher many folds, making management education regulating bodies of the education more important than ever.

It is, thus, essential for all government.

If we talk about management concerned policy makers, educational administrators and education, one must note that there planners, exist many renowned high-quality regulators of our higher education private management institutions system to revive the very thinking in India providing world class of parity in rules and regulations education. These private institutions governing the public (government) are committed to educational and the private sector operated higher excellence and are conscious of their educational institutions in India. responsibilities. They have quality A common corporate law in India infrastructure, admirable course governing public and private business curriculum and faculty, affordable enterprises is a good example to cite. fee structure and location, and Such major reform in higher education in India might just prove to be more above all remarkable placements.

Management education in productive than an open invitation to India has traversed a long distance foreign universities to set up campuses over the years and has established in India-independently or jointly with itself as a powerful force capable of local institutions.

It is time to have a coherent bringing about the manufacturing revolution in India. It provides the policy framework that acknowledges foundation to young managers to be the complementarities of public and a part of the desired paradigm shift private sector to contribute to the higher education system and ensures in the Indian growth trajectory.

Due to the vast customer base, its sustainable development businesses across the globe are eying The writer is the Director of FORE the Indian markets and are keen School of Management, New Delhi to start their operations in India.

Also, a large number of business www.governancetoday.co.in

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June 2016 I 45

POLICY

Division of states for better governance ?

46 I June 2016

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Dr Madhu Omalloor

I

n a sound democratic system of administration, the Delegation of Authority and Responsibility go simultaneously. The power along with responsibility delegated from top of management to the bottom can make wonders in better governance. It is a saying that ‘small is beautiful’. But is it true in the case of states governance too? Is there any correlation between the size of the states and the quality of Governance?

According to Article 1 of the Indian Constitution, India is declared as a Union of States, and the States and territories are specified in the First Schedule. Articles 2 and 3 under Part-I of the constitution, deal with the Indian Union and its territory.

Article 2 provides for the admission or establishment of new states which were previously not part of India like Sikkim, whereas Article 3 provides for the formation or changes in the existing states of India like Chhattisgarh, Telengana, Jharkand, Uttarakand.

Article 2 in itself grants two powers to the parliament; namely, admission of states which were already existing (i.e. such a state/ province was already existing and only brought under the territory of India); and the power to establish new states which were not in existence before.

Article 3 provides for the parliament to: (a) form a new state by separating a territory of any state, or by uniting two or more states or parts of states, or by uniting any territory to a part of any state, (b) increase the area of any state, (c) decrease the area of any state, (d) alter the boundaries of any state, and (e) alter the name of any state.

It is clear from these provisions that division of states is permissible and legal. But while it is legally valid, we have to think about the practical aspects of dividing the states into further small states. It is to be noted that whether the state is too large or too small, the basic components of administrative set up remain same.

According to Article 12, the www.governancetoday.co.in

term ‘State’ includes: The Government and Parliament of India i.e., Executive and Legislature of the Union. The Government and the Legislature of each State i.e., Executive and Legislature of States, All Local Authorities, Other Authorities within the territory of India, or under the control of the Central Government.

John Locke says, the purpose of state is “common good or good of mankind.” State is a body that which comes into existence for maintaining the life and upholds the dignity of its individuals. Its prime objective is to maintain the

The policy taken by the Government can be effectively implemented through proper delegation of authority and responsibility to Grama Panchayats.

The 3 tier system of Panchayat raj is a fine example for the delegation of power from higher to lower level. dignity and lifestyle of its individual by safeguarding their rights’.

The ‘State’ according to Delany V. Moraitis, defined as, the organization of social life which exercises sovereign power on behalf of the people. Here it is clear that the main focus of governance must be the welfare of the society.

What is governance?

Governance is about establishment of policies, and continuous monitoring of their proper implementation, by the members of the governing body of an organization. It includes the mechanisms required to balance the powers of the members, with the associated accountability, and their primary duty of enhancing

the prosperity and viability of the organization.

In this context, Mahatma Gandhi’s concept of ‘Grama Swaraj’ has major significance. The policy taken by the Government can be effectively implemented through proper delegation of authority and responsibility to Grama Panchayats.

The 3 tier system of Panchayat raj is a fine example for the delegation of power from higher to lower level.

If this mechanism works properly, there is no need of dividing the states into several small states. Division of states means that every state will have its own basic infrastructure and implementing leaders.

This brings only unnecessary establishment cost and heavy loss to the Government. ‘Divide and Rule’ policy is not appreciable here. The recent decisions on creating new states have all been taken under political pressures, but the situation demands that the government needs to handle the issue by better political governance, fiscal management and rule of law.

Division of states hurts the motto of Unity in Diversity.

Threat to unity It will be a threat if states are divided on the basis of certain vested interests such as religion, caste, creed, language, culture etc, and against the whole idea of making “One India” concept

by Sardar Vallabhbhai Patel. Such divisions cause more hatred amongst the states, which is not healthy for interstate relations as well as trade. India is a state of diversity having unique cults and customs, creeds and cultures, faiths and tongues, racial types and social systems. Dividing India on such fragile factors can only lead to anarchy. It is better not to go back the concept of “Divide and Rule” policy of the British Era. Divide and share the power from the power centre and delegate uniformly to lower power centres.

The writer is an author, editor, cartoonist, management and media consultant and lawyer June 2016 I 47

INTERVIEW Dr UDIT RAJ | BJP MP AND NATIONAL CHAIRMAN, ALL INDIA CONFEDERATION OF SC/ST ORGANIZATIONS

BABASAHEB’S VISION OF CASTELESS SOCIETY IS FAR FROM BECOMING REALITY

This year is quite special in that it marks the 125th birth anniversary of Dr Bhim Rao Ambedkar, the great social reformer and the principal architect of the Constitution of India, who also went on to become the country’s first law minister. The United Nations, for the first time, celebrated his birth anniversary in recognition of his ideas to uplift the marginalised and oppressed people around the world. However, of late, India has also witnessed some ugly controversies in the name of Babasaheb, as he was popularly known, in its political atmosphere. To discuss issues related to Ambedkar’s ideology and their implication in today’s politics, Ramesh Kumar Raja talked to Dr Udit Raj, the BJP MP in Lok Sabha from the North-west Delhi constituency. A former IRS officer and JNU alumni, Raj is also the national chairman of the All India Confederation of SC/ST Organizations.

Like Ambedkar, Raj, a Dalit leader, too embraced Buddhism.

Edited excerpts:

The name of Babasaheb Bhimrao Ambedkar is suddenly in news for the couple of months. Every political party, including the BJP, is trying to cash in on his name to woo dalit votes. How do you look at this episode?

Babasaheb gained weightage and popularity from the people who benefited from his ideology and because of his struggles for the larger interest of the nation.

A large number of people idolised him, became his followers and created a ground for him, which is very important for a democracy.

We must thank our Prime Minister Narendra Modi for glorifying his image – which had been missing for years – by bringing to fore Ambedkar’s ideology and vision for the nation.

Why it is so that some political parties exploit Dr Ambedkar’s name as 48 I June 2016

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their personal property but doing nothing for downtrodden people and dalits whom he wanted to uplift?

It is sad that some parties misuse his name for their vested political interest. They must take a note of the fact that Babasaheb envisioned a casteless society which is far from becoming a reality. It’s because of his casteless approach that Ambedkar embraced Buddhism as his way of life on 14th October 1956 and encouraged others, especially dalits, to do the same.

It’s sad that a number of people take pride in calling themselves Ambedkarite, but in real sense they are obsessed with their castes and do not hesitate in using it for their political gains. In Dalit itself, there are a number of castes. If one is a true Ambedkarite and believes in his principle, he or she must do away with the caste system.

There is a difference between your opinion and a big section of politicians? How do you distinguish yourself from them?

Let me tell you very honestly that our organisation does not believe in the concept of caste system. There is not even an iota of caste-based discrimination here.

We believe that it is not in the hand of a person to born to a particular caste, but it is definitely in his hands when he matures, to do away with the caste system. If you wish to examine the caste mentality of a person, just check the list of his employees or friends – you will find how one is caste obsessed.

The manner in which politically and economically influential Patidars in Gujarat and Jats in Haryana are www.governancetoday.co.in

demanding reservation has been questioned.

Being a social justice campaigner, don’t you think it’s high time to revisit the provisions of caste-based reservation in India?

It is unfortunate and it is necessary to make them understand that the concept of reservation is not a means to alleviate poverty. Had it been a method of poverty alleviation, dalits would have been benefited the most, they would have been well-off. One must take a note of the fact that reservation is a matter of representation and their representation is already very high in their respective states.

Over the years, Dr Ambedkar’s vision for India seems to have been compromised, if you look at imposition of Article 370 on Kashmir.

Similarly, he supported uniform civil code in India. Do you agree with this?

Dr Ambedkar did not favour a special status for Kashmir just

because it was a border state, holding that even Punjab, Uttar Pradesh, Bihar and the northeastern states were border states.

So, the then Prime Minister, Pandit Jawaharlal Nehru got N. Gopalaswami Iyyangar to draft Article 370 that grants special status to Jammu and Kashmir. He supported a uniform civil code irrespective of religion. Since we were not that mature a democracy in those days and there was not enough education, this vision was postponed by putting it under the Directive Principle of State Policy.

How do you look at your political transformation from a civil servant and social activist?

My only objective in life is to raise the voice of downtrodden people from a street to a bigger platform.

Currently, I am doing the same as a lawmaker in the Parliament.

How do you rate PM Modi’s style of governance?

We must appreciate our Prime Minister for taking revolutionary stand on many issues which no one dared to do in the past. However, it all depends on the support of people and the press to acknowledge the initiatives of the government.

June 2016 I 49

POLICY

Help denied The use or misuse of MPLADS fund remains a serious concern as it amounts to refusal of timely intervention by the people’s representatives

Lekshmi Parameswaran

E

ver imagined what it is to be a toothless lion? Endowed with the powerful exterior but lacking the strength to win crucial battles? The case of the Member of Parliament Local Area Development Scheme popularly known as MPLADS is no different.

The policy is a powerful weapon in the hands of the Indian MPs to directly facilitate works and empower the needy. Unfortunately such a potent tool remains either unused or misused by those in power.

Formulated in 1993 by the then Narasimha Rao government, the scheme initially allocated Rs 50 lakhs to each MP to bring about developmental works in his/her constituency. The amount was later increased to Rs 1 crore in 1994-95, to Rs 2 crore in 1998-99 and then to Rs 5 crore in 2011. Under the scheme, the MPs can recommend projects to the District Authority headed by the District Collector who then looks after its implementation. Out of the total allocated amount, the

50 I June 2016

MPs are also given the discretionary power to spend Rs 10 lakhs for use in any other constituency in India. The agency responsible for looking into its working is the Ministry of Statistics and Program Implementation (MOSPI).

What makes the MPLADS fund unique is that a legislator can bring about meaningful changes by concentrating on the area specific needs. It can bypass the central and state government machinery since the entire power of deciding on a project is vested with the MP. The Rs 4,000 crore that is kept aside for this particular scheme can truly provide reprieve for those in dismal necessity. It is here that the irony also lies. According to the data released by MOSPI, 298 of the 542 members of the current Lok Sabha have not spent a penny from the funds. That effectively means 55% of the elected representatives has chosen dormancy over pro-activism.

Uttar Pradesh, Maharastra and Bihar are the states topping the list for zero use of the funds. It also includes the names of some prominent ministers of the BJP

government like Home Minister, Rajnath Singh, Union Minister for Micro, Small and Medium Enterprises Kalraj Mishra and Chemicals and Fertilisers Minister Ananth Kumar for non-usage of the amount allocated. Congress Preisdent, Sonia Gandhi and Samajwadi Party Leader, Mulayam Singh Yadav are some of the other important names on the list. This in itself is a worrying aspect as this shows that even the top leaders of leading national political parties do not take the scheme seriously. In a scenario like this, it is only natural for the citizens who have elected them to power doubt their commitment to ensure the welfare of the people.

But what is of even more concern is when the MPs decide to use the funds for particular projects.

Lax standards The provision where the MPs are given the exclusive power to decide on the works has also become the policy’s regressive force. With accountability, or the efficacy mesurement completely lacking, www.governancetoday.co.in

the amount is spent on areas that cannot be justified in logical terms.

Another factor that goes against the spirit of the scheme is that the unused funds can be carried to the next financial year. This results in the accumulation of huge sums which can be later misused for other purposes. An effective check should be made on this to ensure correct and timely usage of funds for areaspecific welfare measures.

Also, there are no clear guidelines specifying the use of these funds. Though the list mentions construction of roads, school buildings and so on as the works that can be taken up under the category of durable assets, the overlapping of the same with the powers of the local authorities make it difficult to identify the right projects. In addition to this, the clause which carries the mention of those not covered under the scheme like construction of memorials, religious places of worship, works of private organizations and acquisition of lands have been violated many a times.

Making the situation worse is the fact that the District Collector who is the nodal implementing agency is not given enough power to do a close scrutiny of the project undertaken. The decision of the MP is often the final word in the undertaking of a work. The collector can voice displeasure only in the case of technical issues or in the case of blatant violation of guidelines.

Considering the power that the political parties wield in India, the latter is never a feasible option. The MOSPI has also not been successful in obtaining utilization certificates from the concerned authorities.

It has been observed that in constituencies where there has been utilization of the MPLADS fund, it has been often for the purposes of constructions especially schools and roads. And on occasions where funds were granted for the construction of community centers or libraries, it was often for the mask of running a religious centre or a party office. It has also come to the light that political party affiliations played a major role in deciding the www.governancetoday.co.in

fate of the project. Yet another occasion when it looked like the funds were not put to good use was during the installation of high mast lighting in many of the cities.

This is not to say that schools, good street lighting and roads should figure low in the priorities of legislators. But a fact that is forgotten here is that all this can be taken care of by the local bodies and MPLADS was meant to serve a much higher useful and productive purposes. The end goals of the MPs in the present times have become to construct more and more buildings that will have their name on them.

Garnering the right kind of publicity for the next elections has become

MPLADS scheme. And an analysis of the social and economic realities in India would project the need for its existence.

What should be done to give power to such a visionary policy measure is to make it more accountable and transparent. Efforts like helping terminally ill patients, educating the meritorious students and the like can never be criticized.

Instead what the policy makers can do is to institute a monitoring agency that can sanction the projects and overlook its implementation. There is also a need to formulate clearer guidelines where the powers of the MPs do not overlap with those of the local bodies.

The installation of high mast lights is an example of wrong prioritization

far more important than seeing development in the right light.

Is scrapping the answer?

The current debates in the Parliament to increase the allocation of the MPLADS fund is countered by calls from the taxpayers for completely doing away with the scheme. The question then becomes if this is the right approach? The Supreme Court in its judgment in 2010 has clearly validated the constitutionality of the

Moreover, the money that is sanctioned for construction works often does not cover all costs. Because of this, low quality materials are used that would endanger the safety of hundreds of people. Another anomaly is that funds from MPLADS cannot be used for maintenance and repair works.

Unless an MP is not vested with the responsibility of maintaining a project well, MPLADS will remain a useless tool as far as the common public is concerned. lekshmi@governancetoday.co.in

June 2016 I 51

CLIMATE CHANGE

Addressing climate change concerns in Bhutan Himalaya Dr Om Katel

B

hutan is a landlocked country located in the eastern Himalayas with a population of less than a million. It is predominantly an agricultural country engaged in traditional mixed farming, mainly for subsistence.

The country can be divided into three broad physiographic zones; the Himalayan foothills, the inner Himalayas, and the great Himalayas.

The country comprises of diverse landscapes incised with deep and narrow valleys cutting through steep mountain ranges and valley slopes.

Bhutan is less than 200 km from southern border to northern border but the elevation ranges from about 80 m in the south to more than 7000 m in the north, encompassing heterogeneous landscapes. The varying microclimatic conditions and heterogeneous landscapes make Bhutan one of the most vulnerable countries with regard to impacts of climate change.

Although Bhutan opened its doors to the outside world only after 1960s, it has made tremendous progress in terms of socio-economic development and environmental conservation. Bhutan is especially

52 I June 2016

famous for its extensive forests; more than 80 per cent of its land area is under forest cover. Forests are important components for socioeconomic development and spiritual well-being for man. Additionally, it protects the land from degradation.

Forests are also an important component of the Bhutanese farming system as farmers obtain a variety of products and services from forests, such as leaf litter for animal bedding and for the production of organic manure. In addition to timber and fuel wood, non-timber forest products such as mushrooms and edible ferns are a significant source to supplement to the diet of local people as well as a source of income to many of them. Spiritually, forests and trees hold special value in Bhutanese Buddhism and local people protect many forested areas as citadels of various deities who are believed to be protectors of the locality in multiple ways.

Bhutan has significant areas under forests of which more than fifty per cent area is under protected system where habitat protection through increasing forest cover is the main priority. Forests as primary sources of organic manure for agriculture adds another

dimension to the environmental goal of protecting and maintaining an extensive forest cover in Bhutan.

When the rest of the world was bracing to embark on a growthled development model in the 1970s, Bhutan chose to embrace its deep rooted, spirituality based developmental philosophy known as Gross National Happiness (GNH). Environmental conservation represents one of the four pillars of GNH. The emphasis on environmental conservation was further reinforced by the Constitution of Bhutan in 2008, which stipulates that a minimum of 60 per cent of the total land area of the country must be maintained under forest cover at all times.

Today, Bhutan is not only a carbon neutral country, but it is also a carbon sink, making itself one of the few countries in the world to have negative carbon emissions. ‘Negative carbon emissions’ means that the forests of Bhutan absorb more carbon dioxide each year than is emitted by the sources of pollution such as emissions from factories or other sources, thus making it a net carbon sink country.

Annually the country emits about 1.5 million tonnes of carbon whereas its forests absorb over 6 million tonnes of carbon. www.governancetoday.co.in

Although Bhutan is one of the few countries in the world publicized as a successful country in terms of environmental conservation, but it also bears the brunt of climate change to which it has not contributed anything.

The impacts of climate change results in retreating Himalayan glaciers, reduced crop farming and land degradation, with the impacts reaching beyond its borders. In Bhutan, the agricultural sector, for example, consisting of crop farming, horticulture and livestock, employs more than 69 per cent of the total population. Although agriculture is one of the most important sectors of the Bhutanese economy, its contribution to GDP has declined from 26 per cent in 2001 to 25 per cent in 2003 and 19 per cent in 2008. The reductions in agricultural yields would lead to an intensity of food imports and threaten food security in Bhutan. India is one of the main importers of potato from Bhutan and will be affected if crops fail. On the other hand, variability in precipitation, increasing snow and glacier melting resulting into greater intensity of river run-offs are likely affect millions of people living in the river valleys in Bhutan and beyond.

To overcome significant climatic impacts, Bhutan is exploring a series of mitigation and adaptation measures. An example is the use of alternative modes of transport such as gravity ropeways. Climate change is causing not only retreating glaciers but also drying up water sources, which is why Bhutan today is also concentrating its efforts towards watershed management. Over 90 per cent of water goes into generating hydropower.

Bhutan is highly vulnerable to land related disasters.

Preserving watersheds would not only contribute to ensure a continuous flow of water but also reduce soil erosion, landslides and flash-floods.

Other immediate adaptation measures include improving the weather forecasting system, crop insurance to farmers (as incidences of crop damage has increased significantly over the years due to climate related disasters), and cold storage facilities for farmers.

Bhutan has ambitious pledges yet achievable targets to address the impacts of climate change which is a result of the farsightedness of its www.governancetoday.co.in

leaders who chose to consider value based development rather than running blindly after a monetary growth-led developmental model.

By 2020, Bhutan aims to produce 100 per cent organically grown food and also aims to achieve carbon neutral or zero net greenhouse gas emissions. It also aims for zerowaste by 2030.

Despite immense difficulties in addressing climate change concerns as a land locked country, Bhutan remains realistic to the developmental philosophy embracing the notion that development must proceed with values and it must address the spiritual well-being of its

the two countries in the long term.

Current engagement seems to be limited to hydro-power co-operation.

Though it is significant, it must be comprehensively expanded to include other pertinent issues. Many of the issues can be achieved at the level of academic exchange and research collaboration. For instance, data collection standards and cooperative data sharing policies would help to address common issues like managing water resources and flow regimes, glacier dynamics, crop yield changes, land degradation, species composition and climate related disease controls.

Similarly, strengthening sectoral cooperation between countries can help in developing or adapting the

Over 90 per cent of water goes into generating hydropower

people. Bhutan also seeks from its neighboring countries transboundary cooperation for win-win outcomes. Protecting forests on the Himalayan watershed has the potential to address climate change issues through mitigation as carbon sinks and also reduce the climate related hazards through utilization of various ecosystem services that the forests produce in the Himalayan kingdom. It also has the potential to address climate related risks by reducing greenhouse gas emissions in the neighboring states of India.

As Bhutan and India share common concerns on climate change, and the two countries are strategically linked, they need to explore more options and develop strategic partnerships. Supporting Bhutan’s policies on adaptation and mitigation measures would definitely benefit the interests of

best practices of local efforts that are expected to help local communities develop resilience against climatic impacts. Particular attention of course should be given to studies of river basins, specifically to identify vulnerable areas and to develop adaptive measures connected to landslides, floods and droughts.

Preserving natural resource is a shared task because nature does not mend ways according to boundaries.

Over last many decades, Bhutan has shown a template of development that respects and cares for environment.

But it is high time other countries also alter their ways to preserve the nature. Only then can all enjoy the endless wealth that mother earth has blessed us with.

The writer is a Lecturer with the Department of Forestry, College of Natural Resources, Royal University of Bhutan.

June 2016 I 53

ENERGY

Gateway to energy and development for rural India Ritwajit Das

D

ecentralized Renewable Energy (DRE) and its rural implication is one of the prominent facets of India’s energy security landscape.

54 I June 2016

It acts both as a driver and as an instrument to address the issue of inclusive growth and energy access of people at the bottom of the pyramid. It has the potential to change the dynamics of rural India’s access to energy. Wherever it has

been implemented, it has created success stories of first-time access to electricity, night-lighting, and smoke-free kitchens.

DRE refers to a range of applications providing electrical, mechanical, and thermal energy www.governancetoday.co.in

cookers, solar water heaters, and solar and biomass dryers etc.

DRE solutions are often misunderstood as solely householdlevel energy technologies. As a result, the potential of DRE for several commercial/productive and social/community applications is underutilized. Water purification, water pumping, cold storage or drying of vegetables, fruits and fish, milk chilling, aeration of ponds, or powering of boats are just some of the activities which can use solar, biomass, or other RE or hybrid RE systems.

Typically, DRE has numerous positive features. For example, it reduces dependence on centralized utilities such as electricity or gas grids and LPG distribution networks; it can flexibly match local demand for electricity, heat, and other energy services; and it generates employment opportunities for the local community.

But the most important feature of a DRE project is its distributed nature, making it a local solution.

Thus DRE requires us to think and plan for a specific community, integrating local energy needs and resources. As such, the selection of DRE technology and scale is to be done systematically and in line with each local context.

Misconceptions need to be removed

services. It includes stand-alone Renewable Energy (RE) devices such as solar lanterns and home-lighting systems, solar pumps, and solar charging stations; off - grid or gridinteractive distributed generation of power from RE sources such as biomass (combustion, gasification), solar photovoltaic (PV), solar thermal, small hydro, small windfarms, and waste- to-energy plants, and hybrid systems; and RE devices for thermal applications such as improved biomass-stoves, biogas plants and biomass gasifiers, solar www.governancetoday.co.in

Despite its multiple flexible usages, there are numerous misconceptions about DRE. First of all, DRE is though as a solo sector, which it obviously is not. It encompasses a variety of devices and systems that differ vastly in terms of technology, renewable energy resources involved, scale, size, cost, and application. There are at least three very discrete subsectors within DRE: renewable energypowered micro grids, renewable energy-based clean cooking energy systems, and renewable energypowered standalone devices for lighting, pumping, etc. As such, a selective and informative approach is necessary to factor in the features of specific systems.

For example, while regulations for micro grids need to be stringent (in fact, renewable energy powered micro grids themselves will need to be categorized) in terms of standards for components, systems, operations, and service delivery, regulations for renewable energy devices could be light-handed and based on functionality and output, rather than on technology or design aspects.

Second and a big misconception is that DRE is a stop – gap arrangement, or an interim solution.

Resultantly, there is a propensity to view DRE solutions as being earmarked for certain situations like remote locations. For example, when solar lanterns are handed out, in many instances, there is little promise towards upkeep and replacement of parts and batteries.

As a result, these systems often (estimated at more than 35 per cent) are discarded within their lifespan. Solar home systems and renewable energy powered micro grids are often provided with little thought as to how these will function once the area gets connected to the grid. Once again, systems are discarded and resources are wasted. Lack of enforcement of reliability-based standards has also resulted in substandard products flooding the market.

Also, because of Shortsightedness, micro grids often provide for basic lighting and mobile charging, but as energy demands grow, they are incapable of scaling up to meet the communities’ aspirations. This creates the impression that DRE solutions are unreliable or have limited potential.

Third, DRE is thought of as costlier than conventional energy sources because typically the upfront costs are higher. However, it is now well established that the switch to DRE pays for itself within a short period. For instance, based on the kerosene or diesel cost savings that would be possible, the payback periods are 1–2 years for solar lanterns, 2–3 years for a solar home system, and 3–5 years for a solar pump. However, this payback period is in reality much June 2016 I 55

Usage of solar lanterns has been a big hit among rural masses

shorter if we factor out the subsidy of kerosene and also consider the intangible costs associated Energy Resource with kerosene lamps, including less lighting, emission of fine Energy resource assessment particulate matter, and the biomass. solar, wind, small hydro, etc. risks of fire and explosions.

In the context of the Mapping of energy resources: economics of renewable especially locations with respect to energy-powered micro demand centre. grids, the costs have been Possibility of tapping the resource: compared to grid extension where to put panels, biomass expenses. However, grid plantations, check dams, etc. extension costs seldom include the full costs of transmission and distribution infrastructure as well as the costs of power generation. It is estimated that at some locations,

Energy Demand Applications thermal, electric, cooking, lighting, space heating, refrigeration, street lighting, water pumping, puri cation Enduse sectors households, commercial, community Load characteristics base load, peak load, variations, future

the real cost of grid extension may be as high as Rs 50 or even Rs 100 per unit. It must also be pointed out that micro grids offer flexible connections (to power just 1–2 lights), whereas the minimum for connecting to the grid is 200 watts.

This means that grid extension increases costs because of the higher energy consumption and infrastructure than may be required due to the inherently low flexibility in grid electricity.

Yet, DRE suffers from a belief that it is more expensive.

Social and Institutional Context Energy transitions whether behavioural change is needed Involvement of community Employment prospects willingness and ability to pay Engagement with local agencies.

Programme and Project Design Comparing resource options, scales, costs, need for hybridization, options for storage metering, anchor load, clusterii Crosscutting Aspect of DRE Programme and Projects. (Ritwajit Das, Governance Today) 56 I June 2016

www.governancetoday.co.in

Ensuring financial sustainability Financial viability has been a key concern for DRE entrepreneurs for a number of reasons. Typically they cater to low-income rural communities and affordability for these users is a serious concern.

Also, reaching out to scattered remote locations raises logistics and transaction costs. In such scenario, it is necessary to provide them with institutional support to ensure their financial viability.

For example, by aggregating users with micro-finance agencies, self-help groups, or regional rural banks acting as intermediaries, the transaction costs can be substantially reduced. Similarly, performancebased subsidies through schemes like the Renewable Energy Incentive Deposit (REID) can be provided so that dependence on subsidies is streamlined and delivery oriented business models evolve.

There is also a need to monetize the benefits of DRE, including the environmental and health benefits, avert transmission losses in the case of micro grids (as opposed to grid connected power where nearly 30

CRITICAL DRE SEGMENTS OR SUBSECTORS CURRENTLY IN EXISTENCE • Solar pumps: With India predicted to launch 26 million solar pumps, they could crack out to be the country’s largest solar application • Clean cooking energy: 75 per cent of rural Indian households still cook with traditional fuels in inefficient and smoke-emitting stoves.

This is by far India’s largest though most ignored energy poverty problem • Bio-energy: Bio energy is the largest source of energy for Indian households. Mainstreaming of bio-energy in the ‘new and renewable’ category has important implications for the energy source itself as well as for the millions who depend on it for their energy and livelihoods.

• Off-grid solar lighting: Solar lanterns and solar home systems are now widespread and find use across Indian villages

per cent of power generated is lost in the transmission and distribution stage), and energy security benefits (reduced dependence on imported fuels).

A significant step towards improving the financial sustainability of the sector would be to create a pro-DRE ecosystem by installing full-scale projects that not only demonstrate the effectiveness and reliability of DRE but also generate

Often state programs and policies have been divorced from ground realities due to lack of interaction with DRE practitioners and NGOs on the ground. In recent years, some of the members of Ashden India Renewable Energy Collective (AIREC), set up by a network of Ashden award winning practitioners, as well as other practitioners, have been engaging with MNRE and other ministries to help identify ways to scale up DRE in a meaningful way. Several of the recommendations of AIREC highlight the need to engage with sector players more constructively.

According to AIREC, practitioners can contribute immensely in the following areas: • Providing opportunities for hands-on training to policy-makers and future entrepreneurs, and help develop training modules that reflect ground realities • Getting involved in the development of standards and benchmarks • Contributing to the design and testing of decision support tools such as for cooking energy assessment (preliminary work is underway with AIREC), hybridization, and grid-connectivity of micro grids • Helping to identify priorities for research, development, and design • Sensitizing financiers, investors, and rating agencies by showcasing the benefits of DRE, building correct risk perceptions, and helping to develop instruments for de-risking or risk guarantees • Facilitating the identifying areas where DRE is best suited and can provide maximum socio-economic benefits.

www.governancetoday.co.in

demand for DRE, and foster the development of strong networks of suppliers and service providers.

Such programs may be led by the government or by non-government agencies.

Policy recommendations For DRE to be mainstreamed, it is essential to create an ecosystem where DRE technologies are viewed as reliable energy solutions. AIREC believes DRE has the potential to be an integral part of energy provision for rural development and rural livelihoods. For some situations, renewable energy resource availability permitting, DRE may in fact be the best solution where settlements are remote and scattered, or in areas that are prone to natural disasters.

Because of the cross cutting nature of DRE, it should be leveraged to multiple usage. Thus so far the focus of DRE efforts—especially in government programs—has been confined to basic energy for households by promoting solar lanterns and solar home systems, renewable energy-powered micro grids, solar water heaters, improved biomass stoves, biogas plants, solar cookers, and more recently, solar pumps. However, DRE technologies have the potential to meet a very wide range of electric, thermal, and mechanical energy need of not just June 2016 I 57

MULTIPLE USAGE OF DRE IN THE CONTEXT OF RURAL DEVELOPMENT Service areas

DRE’s application

Health

Solar-powered ice packs for vaccines, medicines, etc.; renewable energy powered primary health centers etc.

Education

Renewable energy-powered schools, classrooms, school toilets

Water

Solar pumps for irrigation and drinking water

Sanitation

Solar-powered running water and lights for toilets; toilet-linked biogas plants

Community kitchens in schools for mid-day meals, tribal hostels, tea stalls, sweet shops

Community-sized solar cookers; biogas plants; improved large biomass cookstoves

Poultry

Solar-power packs for lighting and ventilation of backyard poultry farms; biogas generation based on poultry litter; briquetting of poultry bedding material for use as fuel

Dairy

Solar-power packs for lighting and for small equipment such as testing equipment; renewable energypowered milk chillers; biogas generation based on cattle dung

Horticulture / agriculture

Solar pumps; renewable energypowered cold rooms for storage of fruits and vegetables; renewable energy-powered dryers for spices, ginger, garlic, herbs

Small-scale industries (e.g., khadi, bamboo)

Solar lanterns; solar packs for powering small equipment; energy generation from waste material like cane dust

households but also of a number of community services and livelihoods.

It is suggested that for renewable energy to reach its full potential, all applications and devices must be brought into the mainstream.

Another aspect of integrating renewable energy into local development plans is the 58 I June 2016

tremendous job creation potential of this sector. Fuel-free technologies like wind and solar photovoltaic power create many jobs during the manufacturing and construction phases whereas fuel-based technologies such as biomass-based plants require maximum labor for feedstock production. For instance,

a 10 MW biomass power project can create employment for 100 workers during the 18-month construction phase, 25 full-time workers in the operation of the facility, and 35 workers in the collection, processing, and transportation of biomass material. So, an effective DRE program can contribute to the rural economy besides reducing migration.

There are about 25,000 unelectrified villages in India, many of which may not be connected to the grid for a number of reasons, including remoteness and less population in the village.

They will have to be powered by decentralized energy from diesel or renewable energy. These villages represent an energy challenge, but they are also an opportunity to demonstrate renewables-based electricity generation in a smallscale decentralized mode. Several pilot projects have been announced by the MNRE on this line which is encouraging.

Various DRE projects and devices enjoy generous government subsidies. While these are meant to lower initial costs and encourage the deployment of DRE, subsidies have been criticized for lack of timely dispatch and cumbersome procedures. As a result, many entrepreneurs now avoid subsidies and look for innovative ways to finance their projects.

India now has a wide network of practitioners, entrepreneurs, researchers, and financiers who make up the powerful knowledge resource that is needed to accelerate the DRE sector beyond field trials. This is the right time for DRE to be adopted by various sectors. Many DRE technologies have now been demonstrated for various applications in different situations and are well poised to transition into the mainstream to capture a growing share in India’s energy mix.

The writer is an international consultant on environment and sustainable development policies

www.governancetoday.co.in

www.governancetoday.co.in

June 2016 I 59

RAILWAYS

On the right tracks

Initiatives of the new government have started to show positive results for Indian Railways

New trains and new routes were always introduced but services on personal request are being appreciated by one and all

Sagarika Ranjan

L

ittered cups, peanut shells, food crumbs on the births and stinky toilets – a sight very common during rail travel is gradually becoming uncommon.

Our Railways is going clean and this is no comment of any authority concerned but, of we the common people. Recent policies, IT ventures, efforts of authorities concerned have begun to show positive changes on ground.

Output is the parameter to judge any effort and here at the railways, output is talking. Indeed there is a long way to go before it becomes picture perfect but people are seeing the change and this, certainly counts.

Several initiatives aimed at providing better services have been introduced and the passengers

60 I June 2016

are acknowledging it. “Following my complaint a whole team of 10 cleaners showed up. They registered my complaint, cleaned the compartment very nicely and also requested feedback. This is very good. I am glad that we can request such services now,” said Priyam Singh, a passenger.

Like Priyam there are several other passengers who talk about clean tracks, fragrant toilets, and better and clean bed rolls. “I was surprised how a whole team of green-clad men got into the train at Khadakpur railway station and cleaned the toilets. The whole compartment smelt good after that.

Moreover when the train started to leave the platform they formed a queue and waived and wished. That felt so good,” shares Pankaj Sinha, a frequent traveler on trains.

New trains and new routes were

always introduced but services on personal request are being appreciated by one and all. The system of SMS is turning out to be revolutionary. Shashwat Mallick who was on a long journey to Madhya Pradesh shares how SMS helped him.

“My wife and I boarded the train at around 11 pm. After we had settled, we saw many cockroaches coming out of different corners of the births. Terrified, I called the attendant who denied calling the cleaning staff at that time in the night. Even the TT denied saying that he had more important work to do than register my complaint.

I was ignorant and therefore had to spend the night like that only.

Next morning a tea vendor told me about the complain number written outside washrooms. I messaged on that number and within five minutes www.governancetoday.co.in

a team of cleaning staff came. They asked for the code and did their job very well. I also received a feedback call.”

This was wonderful. Indian railways and this service in this normal train, surprising! Generally these are expected in Rajdhani and Shatabdi trains, added Shashwat.

Several activists who are working for the cause of unemployment in the country say that such initiatives are not only improving services but also creating job opportunities.

They explain that the railway in their efforts to improve services is helping fight unemployment. A big number of these cleaning staff comprises the unskilled and uneducated lot.

Beefed up services is giving many unskilled laborers livelihood and better life for their families.

“My children are going to school now and I am thankful to railways for giving me this job. Now my children can study and we do not sleep empty stomach,” said Mantu, who was previously working as a laborer at construction sites where every day job was not certain. Now he has a job every day, a uniform to wear and subsidized food at Jan Aahar.

One single initiative has changed a lot of lives, not only of the laborers but also of the passengers. The coaches are cleaner, toilets no longer stink, SMS are being responded, and one can order food of one’s own choice.

All of these point towards a beginning in right direction. Of course, currently, there are more issues than solutions but the positive wind cannot be ignored. This was about the common lot, good news is that even the experts and analysts are talking on the same lines.

A research report by Morgan Stanley, The Next India, affirms that there has definitely been a shift in the focus, a shift towards good. The rail budget this year had more of developmental take. It focused on improving quality and not quantity.

Better implementation, better services and one very important area – the area of freight was taken up for improvement. Freight can be a source of employment, revenue www.governancetoday.co.in

initiatives are not only improving services but also creating job opportunities for unskilled and

uneducated people

is the underinvestment in Indian Railways – with budget allocation vs. roads, significantly lower than global standards. Rail is a cheaper mode of transport than roads (by 20 per cent) yet the share of roads (at 57 per cent) in Indian freight movement is one-and-a-half times that of the railways, owing to the congestion on the rail network and poor policies.

Based on a historical perspective, the research signaled that Indian Railways is Exiting the Time Warp to Yield Outsize Benefits to India.

In 1951, India’s rail network was 53,596 kms and 63 years later, today, it has only grown 21 per cent overall, to 65,436kms. In 1951

The sub-optimal mix in the mode of transport, especially freight, could give a sustainable boost to productivity, driving jobs and GDP growth

and ease up congestion. Good freight is a win-win situation for all.

The report states that “given the change in the focus, from throwing more trains at the already constrained network to creating capacity to an increase in speed, we believe that the upside for the traditional gainers will be smaller, with the benefits spread out to newer segments. The need for speed is likely to drive spending towards more technologically complex areas.”

The World Bank estimates that India’s logistics costs (at around 10-14 per cent of sales) are two to three times the best practice benchmark costs, hurting India’s manufacturing competitiveness. We believe that the key reason for this

India’s rail network was 2.3 times that of China; today China’s is 1.6 times that of India.

However, the conclusion based on the contemporary graphs is that correction of the sub-optimal mix in the mode of transport, especially freight, could give a sustainable boost to productivity, driving jobs and GDP growth, becoming a true enabler. Railways is said to be the lifeline of India. For long, this lifeline remained moribund. Finally an honest effort is being made to infuse life into this lifeline and this effort is showing results. They are thinking about the passengers, nothing new but the passengers are feeling it that is definitely new. A good new! sagarika@governancetoday.co.in

June 2016 I 61

INTERVIEW Dr ARUN KUMAR MANOCHA | CMD, IRCTC

COMPLAIN. LET US KNOW. HELP US IMPROVE Chairman & Managing Director of Indian Railways Catering & Tourism Corporation Limited (IRCTC) talks to Governance Today on various issues of Indian Railways and how they are working on making it customer-friendly. _Dr Arun Kumar Manocha is all positive about the ventures IRCTC is taking up. Here are his views on some of the issues.

Edited excerpts:

Often we find people complain about the quality of food. What is lacking?

We only have three per cent of the total catering into the railways and that is also confined to few like Rajdhani and Durontos. Rest 97 per cent is with contractors hired by the Indian Railways. There are three reasons for the quality complaints when it comes to contractors. Firstly, their first motive is profit, quality comes later. Secondly, most of them will give good food initially to get good feedback and contract and then the deterioration in the quality starts.

Thirdly, which is kind of genuine, is that they do not get adequate compensation for the products and services as per the price rise so they begin to compromise on the quality.

Another issue is that there is mostly one pantry in the whole train unlike Shatabdi and Rajdhani that have mini pantries. Therefore, there are issues regarding the food not being hot. Moreover, every person has their own choices.

There have been complaints about pantry vendors selling food items, water bottles and other items at prices higher than the MRP. Why is this not being taken up?

The problem is that people do not complain. I encourage everyone to please report such incidents and 62 I June 2016

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post it on twitter. Every vendor on the trains cannot be monitored individually, unless we get complaints. So far, there has been just one single complaint and that is being taken up sternly. Any kind of issue, I encourage people to complain. Let us know so that we can look into it.

Water vending machines that have been put by IRCTC are there only at limited stations. Any plans to cover the rest?

Water vending machines provide one liter of water at Rs 5 and half-a-liter at Rs 3. This was an initiative with welfare motive but there are limitations.

We have tender only for 2,500 machines. People who set up these machines face problem with respect to rates, at times they are not getting permission as the officer in charge claims that he is new and needs to study the project before giving permission.

At times the railways were asking for three months’ advance payment and at some places there were some technical glitches that led to the delay.

So far, 200 machines have already been set up since December. While 150 are ready to be set up. We have received very good response from the machines that have already been set up.

One machine made a record of Rs 12,000 sale in a day.

These projects would hopefully help the situation.

We have tied up with self help groups to set up these machines at smaller stations. The progress is slow but will definitely be a success.

What new can we expect in the near future?

We have sent a proposal to the government for a fullymechanized pre-prepared thali vending machine. A pilot of this www.governancetoday.co.in

project called Food Box was taken up in Chennai for a month. The response was good and we are waiting for the approval to set up the hygienic thali machines.

Another venture is Namma toilets. Fifteen toilets at seven to eight stations will be set up. These are recast stainless steel toilets. The design has inbuilt wash basin, water supply and are easy to maintain.

The whole structure has facilities for both men and women. Its compact design also takes care of the space crunch issue.

Recently we have put Lassi and water vending machines at the New Delhi railway station and have received very good response. This is an initiative to provide drinking water at reasonable price.

We have a lot to look up to. We are working towards a better and customer centric railways.

What role is IT playing in the development of railways?

The IT industry definitely has a role to play. Digitization has made thing more cordial and easy to monitor. We have also started e-wallet, something like Paytm, and to incentivize the initiative the registration fee that was Rs 250 has been reduced to Rs 50. So, with one time registration it is a very secure gateway to payments while booking tickets or packages. This is a foolproof process that has been linked to the PAN card. Efforts are on to link it to Aadhar as well as voter ID card. We are in talks with the election commission for this.

What are the Tie-ups for holisticity?

Uttrakhand Tourism IRCTC has signed an MoU with the Uttrakhand Tourism Development Board (UTDB) for promotion of tourism in the hilly state, especially the launch of pilgrim packages for the next year’s Ardh Kumbh Mela at Haridwar (2016) and projecting Uttarkhand as a Yoga destination.

Amazon.in IRCTC has joined hands with Amazon. in, India’s largest online store, to give travelers and customers the joy of an easy and convenient shopping experience. In addition to booking travel tickets and hotel accommodations, customers will be able to shop seamlessly from the IRCTC portal and enjoy shopping for over 19 million products across various categories that has an added feature of doorstep delivery.

The RuPay Card IRCTC, Union Bank and National Payment Corporation of India have jointly launched a pre-paid card.

The unique feature is that it can be issued in both virtual as well as Physical forms. It is a pre-paid one loaded with an amount as desired by customer and is redeemable for Rail Ticket, to buy goods and services on any RuPay POS terminals.

Restro-bar on the cards Seeking to foray into fine dining restaurant business at swanky hotels across the country, IRCTC is all set to open a specialty restaurant in the ITDC-run Hotel Janpath in the national capital.

What are the CSR Initiatives taken up by IRCTC? These are just some of the works rather initiatives that IRCTC has taken up to make the services better. There are several social responsibilities towards the citizens that are also being taken up. Some of them include provisioning of golf carts and wheel chairs for the elderly and the sick passengers, RO purified water vending machines at hospitals and public places, pet water bottle crushing machines so that every gulp of water is pure and no reuse of bottle is possible.

Expectations have risen and future seems bright. Indian railways is working hard to wash off the ‘poor services’ tag that has been there for long. A long way to go but at least the beginning has surfaced.

June 2016 I 63

MSME

MSME and the ‘Make in India’ vision

‘Make in India’ vision cannot really succeed without strengthening the real backbone of Indian economy i.e. the MSME sector Shelley Vishwajeet

A

n economy obsessed with big numbers, big investments and bigger stories, often tends to overlook the ground realities and humble enterprises which go into making these aspirations possible.

We are talking about micro, small and medium enterprises here – the MSME sector - the neglected and unsung backbone of Indian economy!

It’s disheartening to see how little media space, be it print or electronic, is devoted to covering the issues, problems or opportunities that face a sector whose contribution to India’s GDP and India’s growth story is phenomenal to say the least. In pure statistical terms – numbers tell an impressive story and also reveal the tale of neglect over the years. To top it even the large chasm between government’s sound-bites and its actual contribution to the welfare of this sector speaks volume about the real state of affairs!

The real backbone Approximately India’s 36 million manufacturing MSME units contribute nearly 45 per cent of total manufacturing output; 40 per cent of the country’s total exports; provides employment to over 80 million persons i.e. it employs more than 70 per cent of India’s total workforce 64 I June 2016

Some of the businesses are dominated by MSMEs in the country

employed within the Indian manufacturing sector (Industry or manufacturing sector employs about 22 per cent of country’s total workforce size estimated between 430-470 million); creates more than 1.3 million jobs every year and produces more than 8,000 quality products for the domestic and international markets. Should sound impressive! But as always numbers do not tell the whole story!

SMEs continue to be plagued with host of problems ranging from high sickness to debt traps to shutdowns which themselves have been the result of legacy structural problems such as low access to cheap capital, low bargaining power vis-à-vis larger firms; delayed payments for its supplies, slow technology up-gradation & product innovation, low productivity, low wages for participating labor force among others – in sum this sector perpetually lives in an environment of uncertainties which continues to hinder the potential of this sector.

Its life on a razor’s edge always for SMEs in India!

And it’s not that governments have not been aware of the sector’s problems. We have a full-fledged ministry to look after the welfare

of this sector. But then, experience has shown that sound-bites and misdirected measures do not really impact the health of any sector. It would also appear that because happenings within SMEs do not make big headlines, the importance and recommendations of this ministry is weighed down – it is neither an economic heavyweight like Department of Industries & Commerce or political big brother like Ministry of Agriculture. But above facts reveal that we have lived in a fallacy of our own creation and time has come to uplift the SME sector if we are serious about higher GDP and more job opportunities, and where the ‘Make in India’ vision comes in, which cannot really succeed without success of SME sector.

So where are we going wrong?

For all practical purposes ‘Make in India’ vision is really about meeting the challenges of a transitioning economy, reaping demographic dividends while ensuring high growth and high job creation for India and Indians. We are witnessing high urban migration www.governancetoday.co.in

and a shift in our demographic profile whereby we have the largest pool of young people, majority below the age of 30 years, but to turn this demographic phenomenon into demographic dividend, we need to convert youthful energy into gainful employment for enhanced productivity. So which sector can provide the avenues? Agriculture provides employment to over 50 per cent of our workforce but it is saturated and overburdened and contributes only about 17 per cent towards GDP. The law of diminishing return has already set in Indian agriculture. So the largest contributor to GDP cannot be a gainful mass employment generator.

So what is left – it is only the industry which has the ability to provide mass employment and has the potential to really uplift the economy. China corrected its historical and unfair burden on agriculture and now all its three sectors contribute and employ roughly about 30 per cent of workforce with slight skew towards industry. In US, agriculture contributes about two per cent of GDP and also employs less than two per cent of population. Make in India vision is thus about correcting historical burdens.

We also need to keep in mind that India is rapidly urbanizing and there is a huge deluge of people from countryside to urban centres. Where will these people find employment and livelihood? Industry is the only answer to gainfully employ new urban settlers. No other sector can cater to this kind of migratory deluge. And within the industry, MSMEs are the largest employment generator and have the biggest potential to absorb new workforce.

So can we really continue to ignore this sector if ‘Make in India’ vision is to succeed? Government needs to wake up to this reality and facilitate creation of a smooth policy and business environment for MSMEs. My oft use of the term ‘ignoring this sector’ may surprise some people as the current government appears to be sounding all the right notes about the welfare of this sector and in fact been more visible www.governancetoday.co.in

than earlier regime in showing itself as a caring guardian. But then hoopla is no substitute to real action and impact. To just give few examples, the government allotted Rs 9,000 crore to Swachh Bharat Mission, Rs 34,699 crore for MANREGA but only Rs 3,600 crore to Ministry of MSME. Within this very modest budget, Rs 1,050 crore will for Prime Minister’s Employment Generation

MAJOR AREAS FOR PRIORITY INTERVENTION TO REINVIGORATE MSME SEGMENT

• Adequate flow of credit from financial institutions/banks • Support for technology upgradation and modernization • Integrated infrastructural facilities • Welfare of workers and artisans • Assistance for better access to domestic and export markets

Program and Rs 1,551 crore for India Innovation, Entrepreneurship & Agro Industry Fund. Government needs to be asked if this kind of meager fund allocation can achieve the lofty targets it wants to achieve.

Can we really realize ‘Make in India’ vision without strengthening MSME sector and infusing it with adequate capital?

Needless to say, we require timely and judicious interventions to realize the potential of MSME sector. Of all required interventions I would list welfare and subsidy for

better remuneration for workers as top priority. You cannot expect internationally competitive and high quality products from workers who are demotivated and underpaid.

Government should find a way to reward workers of selected MSME who are doing exceptional work.

Next should be construction of world class MSME clusters and upgradation of existing clusters. The state of most small industrial clusters is pathetic. The upgradation will also instill a sense of pride and sense of being cared for among the small entrepreneurs and workers. Unless we uplift their morale, there will be little change at the ground level.

And government and banks also needs to be a little more generous and go beyond the limited subsidy regime for the sector. Public sector banks have written off over Rs 1,14,000 crores as bad debts between 2013-15 and majority of this is believed to be loans to large industrial houses or large enterprises. Can banks show a fraction of this generosity to MSMEs? And before I end, let me bust the common fallacy that growth story typically involves large enterprises Vs small & medium enterprises whereby one makes way for the other. This is a fallacy! Take the example of Italy, one of the most industrialized economies of the world. It may come as surprise to many that MSMEs remains the backbone of the Italian productive system. Of the total number of more than 6,000,000 enterprises, 99.9 per cent are MSMEs.* This sector contributes 81 per cent of the total employment and 72.4 per cent of the Italian GDP. Within EU, SMEs accounted for 66.5 per cent of all European jobs in 2013 and contributed over 3.4 trillion Euro to its economy.** Are we listening!

Sources *Italy Country Report on SMEs Needs

by Viola Cavalca, Caterina Rinaldi, Diego Santi, Massimo Gazzotti (par.

1 and 2.1) **European Commission Study The writer is a policy analyst and founder president, Earthcare Foundation.

June 2016 I 65

HEALTH

Bridging urban rural health divide Huge manpower gaps bedevil healthcare in rural India: How private sector can help

Dr Dharminder Nagar

F

or all the animated talk about India’s rapidly-growing, medical-tourism attracting healthcare sector and projections of it becoming a USD 280 billion industry by 2020, the fact remains that our health sector is bedevilled by major disparities when it comes to accessibility between urban and rural areas.

According to estimates almost 70 per cent of the doctors in India are concentrated in urban centres, serving around 30 per cent of the total Indian population. Urban India enjoys access to almost 65 per cent of the country’s hospital beds despite having less than 30 per cent of the total population.

At a time when technology

66 I June 2016

and infrastructure make distances shorter, we still have a long way to go in building the bridges to cover the gaps in rural healthcare.

Home to more than 60 per cent of the national population, rural healthcare can just not be dismissed by the country as ‘sick child.’ And there is an immediate need to take essential steps in order to steer its healthy recovery.

One of the raging issues in the upliftment of health and sanitation in remote areas has been the sheer lack of trained medical professionals to cater to the everyday needs of the rural population, which are thereby deprived of the basic medical facilities necessary for survival.

Forget the rural hinterland, remote villages and tribal areas, quality tertiary healthcare is not

available even to a bulk of urban population living outside a few glittering metropolitan cities. For example, in north India while Delhi NCR remains a hub of the best multispecialty hospitals, even a 100 km move outside the region will leave you without a decent tertiary care hospital. This is evident from the fact that the Delhi NCR hospitals are crowded with people coming from Uttar Pradesh, Bihar, Haryana and even West Bengal.

A lot of people have to travel long distances to avail of life-saving treatments like dialysis. In the absence of quality cardiac care in smaller towns and villages, many people fail to survive a heart attack as they are required to travel long distances to nearby cities with decent healthcare facilities. www.governancetoday.co.in

At our own facilities, we have closely studied this discrepancy in India’s healthcare delivery.

Resultantly, as a healthcare entity, we have planned our expansion keeping in mind this skew. Not only are we working to expand our footprint in smaller towns and cities of India which are bereft of quality healthcare, we are also working on parallel initiatives to fill in the gaps wherever possible.

While primary healthcare facilities continue to suffer from shortage of staff and absenteeism, private sector finds little incentive in investing heavily in rural areas.

However, through some low cost but effective initiatives, the private sector can play a positive role in helping address the deficit of manpower in rural healthcare to some extent. Some of these could be enlisted as follows:

can take skilled doctors of reputed hospitals to offer services in rural health centres and recommend patient transfer if needed, can play a role in bridging this gap.

Turning to smaller centres It is understandable that for a private entity it doesn’t make much business sense to open tertiary care hospitals in villages. However,

Training local manpower Notably, the deficit in manpower in rural areas is not just about doctors, it is about healthcare providers in toto. Even nurses, radiologists, pathologists and paramedics are hard to find.

Launching training programs for nurses and paramedics in smaller centres is another important initiative that can help address manpower shortage to an extent.

Telemedicine centres Telemedicine, as we know, refers to the use of information technology to provide medical consultation in far flung areas. It is intended to overcome geographical barriers, connecting users who are not in the same physical location with an aim to improve health outcomes.

Remote populations, which often lack minimal physician presence can benefit to a large degree by telemedicine centres through which physicians can offer basic minimum consultation and medical advice.

Notably, communicable diseases are among the leading afflictions affecting rural populations and basic consultation and hygiene advice can also go a long way in treatment and reducing their incidence.

Private-Public Partnerships (PPP) We need more public private partnerships to involve the private sector in rural areas. These partnerships can offer incentives to doctors to offer services in rural areas for a small number of days of a year. With severe shortage of specialized cardiologists, nephrologists, neurologists and gynaecologists, rural populations often have to make with less skilled doctors or worse quacks. PPPs that www.governancetoday.co.in

Through some low cost but effective initiatives, the private sector can play a positive role in helping address the deficit of manpower in rural healthcare to some extent.

the needs for profit and social benefit can be balanced by opening hospitals in smaller towns and cities which cater to large surrounding populations. With this thought we have opened the first private tertiary care hospital in Darbhanga, Bihar, a region where private participation in healthcare has been dismal.

Through this facility we aim to serve large populations in and around Darbhanga; bulk of whom would be from rural areas who will now not need to travel long distances to Patna, Kolkata or Delhi in search of specialized treatment. Such endeavours also attract doctors who have left their state in search of greener pastures back to their roots.

At Paras HMRI, Patna, we have initiated such training programs.

By incorporating locals into the extensive training programs, the initiative ensures a long term solution to the low availability of trained manpower in rural healthcare, with a motive to not only provide quick medical assistance by experienced professionals but with a broad vision to empower the community. This encouragement to generation of rural employment is no surprise, considering the position of the company as the highest private employer in health industry.

The writer is the MD & CEO of Paras Healthcare

June 2016 I 67

BILATERAL RELATIONS

Antonov is among India’s major transport aircrafts

Indo-Ukrainian bilateral balancing act Nataliia Zorba

I

ndia and Ukraine are tactically changing the geopolitical balance of international security in a dynamic manner. The bilateral relationship between India and Ukraine is no longer limited to export-import of industry based supplies and medical education.

India and Ukraine are changing the game to a next level as India, one of the biggest defense markets in the world, has identified Ukraine as its key supplier for its air warfare and transport machinery.

Ukraine-India relations took shape when Ukraine received sovereign state status after the fall of Soviet Union in 1991. On December 26, 1991 Ukraine was recognized by the Republic of India as a sovereign independent state and both nations established embassies and embarked frequent official visits of presidents and allied diplomats from 1992 – 1993. However, since 1995 the bilateral relationship between these two nations was almost

68 I June 2016

frozen; only in 2002 governments of India and Ukraine decided to restrengthen and upgrade the nature of relationship by jointly signing some new cooperation.

After the visit of the President of Ukraine to India in October 2002, the bilateral trade started to grow rapidly and steadily. Around 2005, Ukraine recognized India as one of the strategic partner countries for Ukraine. The nature of Ukraine-India relations in 2005-2009 indicates that benefits of both countries was primarily economic cooperation.

But of late, Ukraine has emerged as a leading supplier for India in terms of strategic defense equipments, arms, naval and aerial warfare articles. This year India signed a MoU for an amount more than INR 35,000 Crore to procure 500 Ukrainian aircrafts. India is also the largest export market of Ukrainian commodities, articles and products in Asia.

The richest field of UkrainianIndian cooperation is science and technology which goes back long.

Since 1957, top medical universities in Ukraine have attracted best of India’s talents. Every year Ukraine prepares more than 3,000 medical specialists mainly doctors for India.

The technical cooperation between the two countries is underpinned by the Intergovernmental Agreement on Cooperation in the fields of Science and Technology, which was signed in 1992 and was upgraded by a new and upgraded agreement in December 10, 2012.

The contemporary agreement document covered collaboration and co-creation prospect for more than 10 projects in the spheres biotechnology, space, astrophysics, medicine and renewable energy.

In terms of trade relations, Ukraine is one of the major suppliers of products from metallurgy, chemical industries (mainly inorganic), natural & trans-modified fats, vegetable oils. Ukraine is also one of the important suppliers of small to medium type critical nuclear reactors, boilers, coolants and allied machineries to India. In context www.governancetoday.co.in

of strategic defense partnership, Ukraine is a regular supplier of navy and air force articles along with energy and transport infrastructure technological platforms.

Likewise, India is one of the key suppliers of communication technology (services and equipment) to Ukraine. India is also the leading supplier of pharmaceutical products and generic medicines to Ukraine.

Strategic defense cooperation between Ukraine and India In 2012, Ukrainian President Victor Yanukovych visited India and set-up new agreement on strategic defense cooperation between two nations. However, India a close and trusted ally of Russia kept these arrangements on stay put mode.

But at present India, is pushing all gears to reinforce the partnership between two countries.

Ukrainian-Indian cooperation in the defense sector has its own history and acquired a positive experience, which suggests the possibility of Ukraine to meet India’s demand for weapons modernization, renovation and extension of the life of military equipment, especially the Air Force.

The contemporary bilateral agreements provide the basis to affirm that the development of Ukraine-India cooperation in the defense and military-technical spheres. The intergovernmental agreement will kindle the implementation and intensify the implementation of existing joint projects in defense and related fields. As India has emerged as one of the topmost weapons importer, the cooperation between India and Ukraine holds immense potential.

Ukraine belongs to the very few countries in the world that has its own production of whole aircraft in context of cycle and processes. The main aircraft building enterprise of Ukraine is the state based enterprise known as “Antonov.” Antonov or An class of aircraft have served the Indian Air Force and Navy for over www.governancetoday.co.in

five decades.

During 28th -30th March 2016, Ukrainian official delegation headed

by Oleg Hladkovskiy, the First Deputy Secretary of the National Security and Defense Council of Ukraine, took part at the “DEFEXPO INDIA 2016” international exhibition, in Goa and represented “Antonov,” which presented wide array of products related Land, Naval & Internal Homeland Security Systems. Common interest was also expressed in developing cooperation with India on upgrading the military and transport aviation of Indian Armed Forces. Furthermore, Ukraine has proposed to supply

Ukraine-India relations took shape when Ukraine received sovereign state status in 1991. However, since 1995 The relationship was almost frozen; only in 2002 the two governments decided to re-strengthen relationship by jointly signing some new cooperations new transport aircrafts An-132 with a load-carrying capacity of 9.2 tonnes and An-178 with a capacity of up to 18 tonnes to India.

Acknowledging the importance of “Make in India” policy of government of India, Ukraine’s Antonov aircraft manufacturing company has decided to produce the transport aircraft in India, in collaboration with the Reliance Group. Antonov’s research suggests India needs 500 aircrafts of such attributes, with a total value of $5.3 billion over next 15 years.

In addition, the Indian Air Force operates more than 100 An-32 aircraft, for which the An-132

aircraft is being developed as replacement.

Nuclear cooperation Atomic Energy Regulatory Board (AERB) and State Nuclear Regulatory Inspectorate of Ukraine signed an agreement on Dec 10, 2012 for Exchange of Technical Information and Co-operation on Nuclear Safety and Radiation Protection. The agreement envisaged cooperation in some very important regulatory activities including legislative regulations, safety guides and technical criteria in nuclear safety; design, construction, operation decommissioning of nuclear facilities; waste management and environmental impact, assessment methodologies and procedures; reports on operating experience; exchange of information on research and developmental program; joint working meetings and training seminars etc. Among other areas the two organizations found common interest were in regulation of nuclear power plants with VVER type reactors, two units of which are coming up at Kudankulam in state of Tamil Nadu.

Traditionally, India is under developed in nuclear energy; the stations are quite a few, but very limited, with a total of about two gigawatts of power. But India has developed a long-term program of nuclear power development, focusing on light water reactors such as the Soviet reactor (reactor or Russian) VVER-1000 (1,000 megawatt).

Because of non signing of NPT and resultant problems, Indian nuclear power industry could not develop up to its potential.

However over last decade India has got increasingly integrated in global nuclear trade. In this changed environment, Ukraine can bring synergies with technology transfer and associated cooperation. Ukraine has undoubtedly one of most robust civil nuclear infrastructure and nuclear energy production.

Almost 50 per cent of Ukrainian’s electricity consumption comes from nuclear energy and India can surely June 2016 I 69

Nuclear power has huge potential for cooperation between India and Ukraine

leverage and take benefit from Ukrainian nuclear strength.

Road ahead for India and Ukraine In an interview, the Ambassador of India to Ukraine Mr. Manoj Kumar Bharti stated that, “Speaking globally, Ukraine is a strategic partner of India. These are not lofty words. It is the truth. Our relations have a rich history, and at present, we have a fruitful development in economic and defense sectors.

In addition, we are very active in specialized areas, such as pharmaceuticals and import of sunflower oil from Ukraine to India…

We have to remind Ukraine that India is a huge market, which may interest any Ukrainian company.

And Ukrainians sometimes even 70 I June 2016

don’t fully realize that just 0.1 per cent of Indian population equals to 125,000 people”.

For Entrepreneurs of India and the Ukraine there is significant untapped potential for cooperation.

Ukrainian enterprises produce a wide range of chemical industry and metallurgy, aviation, shipbuilding, as well as machinery and energy equipment. Ukraine has modern and advanced technologies and the two countries can leverage these for mutual benefit.

On its part, India should support the liberalization of the visa regime with Ukraine. This will ensure hassle free and affordable travel for businessmen, community leaders, students and others. It will surely make Indo-Ukrainian collaboration stronger and will promote the development of bilateral trust.

India can definitely enhance its position of favorable geopolitical diplomacy by strengthening its ties with Ukraine. It can give assertive checkpoints to Russia and China in a very subtle way. In economic sphere, Ukraine and India need to strengthen cooperation to advance the structure of bilateral trade and fuller use of the competitive advantages of economies of the two countries through development projects of industrial cooperation. Overall, there is tremendous potential for both countries to cooperate and benefit in a complex geopolitical environment, and the two countries must not miss this opportune moment.

The writer is a sociologist and international relation specialist from Kyiv, Ukraine

www.governancetoday.co.in

Musical Saga in the Making ART & CULTURE

Sagarika Ranjan

“L

ike most great inventions were a result of some accident, Bajanaama and the series also just happened,” says Amar Nath Sharma, former

www.governancetoday.co.in

civil servant and an ardent music lover. “While strolling down a street in Kolkata, I stumbled upon records that had been dumped at a Kabadi (junk) shop. My passion for music led me to enquire about that heap and something within stirred and I decided to take up the

herculean task.” The incident took place 25 years ago; Sharma has been excavating musical records ever since. And in this journey, he assiduously collected some of the oldest musical records in the world.

Sharma has penned two books on the old musical recording June 2016 I 71

PRICELESS TREASURES OF RECORDED INDIAN CYLINDERS In the time even 1902, some scientists, ethnomusicologists, and experts of music imported blank cylinders and its instruments (Phonograph) and got voices of their choices, recorded for study and preservation. Some of them are: Hemendra Mohan Bose was one of the first Indians, who imported such machine and recorded the voice of Kavi Guru Ravindra Nath Tagore, Dwijendra Lal Roy, Lal Chand Boral and many on Cylinders. He also happens to be the first Indian who manufactured Cylinders indigenously and can be called as ‘The Father of Indigenous Cylindrical Records’.

He introduced H. Bose label of his own recorded Cylinders.

Unfortunately due to his patriotic leaning by introducing recorded Cylinders of Vande Mataram etc. during anti-partition movement of Bengal in 1906, his records were considered as seditious and were ransacked by the British Administration. Thus it was concluded by all concerned that this National Heritage of ours has perished, once for all. However, fortunately his was the first Cylinder, which I found few years back, which even now remains the only acknowledged surviving indigenously Recorded Cylinder

by H. Bose in the world.

In due course I was able to

trace an old box which housed a treasurer-trove having Brown-wax Cylinders of Ustad Alladiya Khan, Miss. Gohar Jan of Calcutta, Miss.

Allah Bandi of Jaipur, Bhaurao Kolhatkar, Bal Gandharva, V. D. Paluskar, Bhaskar Bua Bakhale, Bal Krishna Bua Ichalkaranjikar besides others.

Few big size concert Brownwax Cylinders, which contained unknown voices recorded in Mumbai by a Parsee recording Company named ‘Aspandiar Shahriyar Phonograph Recording Company’, Kalba Devi, Bombay.

Fortunate enough we could lay hands on a Cylinder containing voice of Dada Saheb Phalke, narrating his experiences after producing the first commercial Silent Cinema of 1913 ‘Raja Harish Chandra’. However, the ultimate was the discovery of Abha Cylinders.

instruments.

The first one, Bajanaama, elucidates the history of gramophone records that date back to, as early as, 1906. It also explains the socio-political scenario of the time giving an insight into the challenges that the early recorders faced and how the recordings played an important role in the independence struggle. The second – The Wonder That Was the Cylinder, deals with the now mostly forgotten cylinders which was one

of the first recorded devices.

The best part of Sharma’s books is that it was not written to become a bestseller, or to win awards; it was written solely for a noble cause. It was an attempt to preserve incredible wealth of music that our country is endowed with. It is Sharma’s contribution to the borderless world of music.

It’s aim was to help researchers preserve the musical glories of ancient India, which sadly does

72 I June 2016

not attract much attention these days.

“I want that these books make their way to the libraries across the globe and help researchers and music lovers preserve the rich musical tradition of our country,” says Sharma.

Initially, Sharma was approached

by Kathachitra publication to write an article on the subject but when the publishers realized vastness of the subject, the idea of a series of seven books was conceived. Early history of sound recording in India cannot be summed up in one book and therefore the series. Actually, the number of the books may go up.

“Records are basically V-books (Voice books). These are documents representing the aural history of our country and are needed to be heard, deciphered, appreciated in context to their history and be accorded the niche place they deserve in the evolution of the society,” explains A N Sharma.

Reception of books postpublication “When my first book ‘Bajanaama’ was published, I was not very sure about its acceptability by readers. However with time, the book received wider recognition and respect. This encouraged me to think about the next project, which on publication, received the same admiration and acceptance as my first book. I feel that these two works are proving to be stepping stones towards establishing the aural history of the Indian sub-continent.

It is just a beginning; many more are expected to join the series.

“As this field needs missionary zeal to collect, co-relate, collate and contribute, a sense of responsibility has ascended over me and I am on a mission to bring forth elements of this hidden treasure,” said Sharma.

Ongoing research for other books in the series At present I am working on three projects simultaneously I) Aural - History of Indian Freedom movement www.governancetoday.co.in

The book is on pre-independence India and recordings related to it. It shall deal with recordings related to freedom movement, British crown and officers, rajas and nababs and their subjects. It will also chronicle characters whose recording are linked to freedom achievement from a sub-altern angle.

II) Aural - History of colonial nautch girls This book on colonial Nautch girls shall be an in-depth study of politico-economic and sociocultural history of these women of our sub-continent who despite humiliation and sufferings helped to preserve our great cultural heritage.

It will primarily revolve around

The journey of ‘Bajanaama’ was full of struggle, says Sharma.

It took him around eight years to get the final work published. But of course once it got published, it was accepted well. Pointing to the fact that publishing such works is a costly affair, he says that the task was made even more challenging as there wasn’t any institutional

“The journey of my second work was both fascinating and frustrating; Fascinating, because it is a first of its kind and frustrating because we witness loss of some invaluable heritage of our culture’ says Sharma.

The book explores the noncommercial era of sound recording of the Indian Sub-continent and recordings that have been discovered for the first time in the

those characters whose records are available. Some of these women were born around 1850s.

III) The History and Documentation of the Indian Silent Cinema (1913-1934) The third topic that is being dealt with is work on Indian silent cinema. It is a four to six volume encyclopaedic work that aims to bring forth details of quite a number of Indian silent movies, a genre considered long lost. More than 1,300 silent films were produced in India between 1913 and 1934.

However, less than one per cent has managed to survive the test of time.

or philanthropic support. The hard work is reflected in the book which contains materials collected over two decades. “During this period, I had to virtually search every possible KabaadKhaana (junkyard) of our country. I felt pity to see some of the invaluable cultural heritage scattered on footpaths, uncared and unattended,” rues Sharma. He also feels sad saying that during this entire endeavor, he hardly came across any library or institution that has bothered to collect and preserve such documents of historical importance. Such apathy has caused irreparable loss to our

world. It deals with India’s oldest voice recordings of 1899; a treasure to keep especially for research on the subject. Till this book was published, it was believed that the earliest recordings began from 1902.

Till publication of this work, it was almost unanimously accepted by scholars, ethno-musicologists and sound-archivist that no Indian voice recorded on Cylinders existed, except those lying in the British and German Museums. Furthermore, Sharma feels proud to say that these recordings are in India and not in any foreign land. “With the

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Even their storyline, photographs have vanished. “In last 25 years l have gathered invaluable material on the subject and plan to publish the work”, shares Sharma.

The journey of Bajanaama

national Heritage, he laments.

The journey of the Wonder that Was the Cylinder

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publication of my second work we are able to trace and take History to few steps backward. The book, through a documentary DVD also gives its readers, an opportunity to listen to unheard voices of Ustad Alladiya Khan, Pdt. V.D. Paluskar, Bhaurao Kolhatkar, Dada Saheb Phalke and Bhaskar Boa Bakhale, among many.

What frustrates Sharma is the callousness and carelessness with which we have allowed such invaluable gems of our cultural History to perish. Worse still, whatever has been documented could be lost too as they are not being cared for. “There is a need for an initiative to preserve these. The western nations have preserved such elements of their cultural History by opening museums.

They did this almost 125 years back and we are still to initiate. I would like the experts of Indian Music to take a call and contribute towards preserving these priceless objects for posterity,” he says.

Two and a half decades, and counting According to Sharma, this time span of 25 years and the dedication is still insufficient for the work.

It needs a battalion of dedicated workers with sufficient resources to preserve and archive these invaluable cultural heritage pieces.

“I took a month’s leave to write this book and worked religiously from 7 PM to 7 AM, everyday. My wife’s moral support and that last cup of tea at 2 AM was really an experience worth remembering. Nobody then

‘Labor of love’ Ever since Bajanama was published, appreciation has been pouring in from all quarters including research scholars, music-lovers, performing artists, publishers and academics, many based overseas. The critics have given the book the title of “Labour of love.” Sharma says, “They invariably appreciated my commitment of 25 long years and towards my efforts to create and rewrite the History by giving it all together a new dimension.”

Institutions like Centre for the Study of Developing Societies (CSDS) New Delhi, FCT (Faculty of Contemporary Theories) Vadodara, Association of British Scholars, Vadodara and Film Heritage Foundation, Mumbai have invited Sharma to talk on the subject. In addition, there has been huge support and appreciation from the media.

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believed that I can write a book on such the subject but now I have it and more are in the pipeline” says Sharma proudly.

Daughter’s helping hand Anukriti, daughter of A N Sharma, has been a partner to him while working on the second book. With a background in English literature and editing, her contribution helped Sharma research better and narrate better.

On his experience of working with new generation, he says,

“The added advantage was an opportunity of discussing the subject with eager and inquisitive minded person. It was also great experience to watch new generations work on old and archival subject.”

Future ventures There are seven to eight books that are a part of the saga of the musical history. The subject is vast.

Its encapsulation in few chapters doesn’t give satisfaction. Each record is a book in itself.

Sharma says that the concepts are very clear in his mind and that the books will follow one by one in due course. He also says that a lot of work needs to be done on musical history of the country. For instance, a number of female singers who were prima-donnas of their time have just been forgotten. It will be a befitting tribute to them, if we choose them as a subject and write on their voice as well as social, cultural and economic environment in which they lived and worked, he adds.

We Indians take immense pride in our cultural history and traditions of which music is a big part. It will be a travesty if we lose our revered musicians, their works and their legacies simply because of our negligence.

Amar Nath Sharma has shown that with concerted efforts, we can still salvage a lot of our great musicians’ works. It is incumbent upon Indian government, art institutions, art historians and public at large to encourage such individuals who are toiling to preserve the country’s cultural heritage, and present the same to people, to whom this wealth belongs. sagarika@governancetoday.co.in

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