Tuesday, December 26, 2006

The Maths behind SEZs

I always wonder if creating umpteen number of SEZs in India a decision of which general public in India can be proud of or are they just being carved out for the purpose of providing the few lucky-ones with an ample opportunity to make money on the cost of hundred and thousands of those who cannot afford to even earn their daily bread. Are SEZs really that great as promised and proclaimed or is it just that the media inputs only that much information in the public mind which the government & those few chosen-ones want the public to know. While searching for these questions, I luckily got my hands on a great article which not only discusses the pros & cons or rather only cons of SEZs but also compares the Chinese and the Indian model. After reading this article I realized what a SEZ really is but unfortunately, I am sure, such articles and the brutal truth won't reach the general public of India. Some excerpts from the article:

All these exemptions will mean a revenue loss of more than Rupees 1.75 lakh crores to the state exchequer after five years. Although this staggering amount is enough to feed the country's 320 million people who go to bed hungry stomach for a number of years, or provide guaranteed employment to at least two members of each of the rural families for the next five years, this is a 'small price' that the nation must pay to keep for the royalty tag for the rich and beautiful.
You may call it 'the biggest land-grab of the century' or term it as 'open-loot'; the powers that be are simply not deterred. Prime Minister Manmohan Singh has repeatedly said that the SEZs are the need of the day. No wonder, agricultural land, which is a scarce commodity, is suddenly available in abundance. Unmindful of the fact that the per capita land holding is already at an abysmally low of 0.25 acre, the government is using the draconian Land Acquisition Act 1854 to further purchase any land that it sets its eyes on. In the first phase of clearances accorded by the government, a total of 1.25 lakh hectares of prime agricultural land are in the process of being acquired. In the second phase too, almost an equal area would be obtained.
One of the biggest SEZs is coming up near Mumbai. Spread over 14,000 hectares, it is coming up predominantly on double-cropped land.
Another major SEZ proposed in Jhajjar adjoining New Delhi is spread across 10,000 hectares and is again gobbling double-cropped land. Interestingly, both these SEZs, proposed to occupy a landmass larger than the suburb of Gurgaon, are yet to be officially approved. In Mangalore, one of the promoters is the government-owned ONGC and 2,200 hectares of double- and even triple-cropped land is being acquired for setting up a SEZ.
The CPM government in West Bengal has acquired some 400 hectares of fertile land for the Tatas to set up an automobile factory at Singur, near Kolkata. Technically speaking Singur is not a SEZ , but what makes the deal politically significant is that the State government has actually acquired the land at cost of Rs.140 crores. It has then been made available to the Tatas for a mere Rs.20 crores, one-seventh of the cost price. Even that can be treated as a loan for 5 years.
The setting up of the princely estates is being primarily justified on account of employment generation. The premise is that it will create 5 lakhs job opportunities. Does this kind of employment generation mean anything for India? This question has been conveniently ducked, and for obvious reasons. Now let us examine the ground realities. It was at the beginning of this century that some 75 lakh people, more than the population of Switzerland, had applied for a mere 28,000 lowly paid jobs in the Indian Railways. For a country, which is on a fast track information highway, this does not mean anything significant except for statistics. Even if you were to employ five lakh out of these 75 lakh, isn't that a mere drop in the ocean? Millions of assured jobs can be created if the total amount of revenue loss - Rs 1.75 lakh crore - and the several times higher public sector investment to follow is used for employment generation.
Food security too is no longer the national priority. Otherwise, no sensible government would have at any cost tinkered with the country's dwindling ability to produce food for its own population. Our own conservative estimate shows that the nation will suffer a loss of Rs. 250 to 400 crores from the reduction in area under cultivation of food grains alone. Foodgrain production is expected to drop by at least 4 to 5 lakh tonnes a year. I remember these are only conservative estimates. In case of land under high value crops, the losses would be much higher.
Take the case of Pepsico's entry into Punjab in the 1980s. The multinational giant promised to create 50,000 jobs. In reply to a 1991 parliamentary question, the Ministry of Food Processing in acknowledged that the company had created only 482 jobs, of which 210 were unskilled workers.
It is therefore a free-for-all activity. If you can mobilize political support by hook or by crook, you can rest assured that you are on the right path to royalty. Whether you finally deliver what you promise is something that you can leave to the consultants to take care of. What is more significant is that nowhere else in the world will you find such a pliable government and a supporting bureaucracy like in India.
In China, from where India drew inspiration, only six SEZs - at Shenzhen, Shantou, Xiamen, Zhuhai, Hainan and Pudong - have been set up so far. These economic zones, all in the public sector, came after a lot of debate and deliberation, and all of them are situated along the coast. Faced with shrinking cultivable land, the Chinese SEZs have come up only in wastelands. In India, all these norms have been thrown to the wind. World over, there are only some 400 special economic zones. If it was such a productive and useful activity, why hasn't the world woken up to the promises that Dr Manmohan Singh's government has been making? The SEZs cannot, and will not, create economic magic, but this has not been the reason for setting them up. They are essentially aimed to create a series of affluent islands amidst the cesspool of poverty, hunger and deprivation. Oases, or pockets of effluence for the rich and elite, who find the poor an eyesore.



Thursday, December 21, 2006

Racist Bosses of Cricket??

News: ICC fines Sreesanth for dissent
Neither I am an avid cricket fan nor it really matters to me if a cricketer is fined, but it always makes me think whenever 'sledging' is done by some Asian Player, ICC is not left behind in jumping up and grab the opportunity of fining the Asians. Yes, this time Sreesanth was not fined for sledging but for 'unsportsmanlike conduct' and 'wearing black garment under his shirt' by a Asian but couldn't the timing have been better. A day after he 'sledged' the South African racist in return of his sledging, he was fined for the above 'crimes'. Definitely, he did break some laws but were South African white men following each and every rule. Were their over appealing 'hymns from the Holy Bible'?? (A statement Sunil Gavaskar used in SA when most of the Indian Team was penalized some 7-8 years ago.) Was the sledging they do is correct as per the CoC of ICC?? Will BCCI even care and use its financial muscles to tell ICC 'enough IS enough'?? Some people say we are giving justifications for our wrong actions but then why the hell white men not even considered for the fine?? Is it not true if Sreesanth would have been punished for his dance then it could have become inevitable to leave Mr. Nel?? A similar incidence occurred after Champions Trophy wrt advertising controversy with MS Dhoni. But, as White man like Ponting had also done the same mistake no action was finally taken. ( I am not sure of of player's name but one was Indian, action against whom was due and then a Aussie also came into notice with the same 'crime', hence he was left alone)

I do not care about Indian Team or their respect but whenever such an incident takes place it makes me feel hurt because my origin, my roots seem to be targeted. It seems my nationhood is being abused.

Anyways a nice video:

Wednesday, December 13, 2006

No Zaire!!!!!!

Ahhhhhhhh Shit... !!!! Today while browsing through wikipedia I realized one very important thing... Zaire do not exist any more.. :( Last time when I read in Geography (around 95-96) there was a Country called Zaire, but today I came to know the fact (as far as I remember, might be I read about it and have forgotten... whats wrong in writing a blog :D) that a country called Congo (DRC) has taken its place... it seems I need to keep myself updated with world happenings more

IndoUS Nuke Deal

The UPA keeps telling they have able to achieve which no previous Indian Government has been able to do: Nuclear cooperation with the Great Uncle SAM!!! To be true, I am a naïve to comment on this issue which typically requires knowledge in various spheres like strategy, international relation, politics, energy need, defence etc. But as per my understanding, this nuclear deal deals with two main points: Indian Energy Requirements and Indian Nuclear Capablities. On the one hand it can 'possibly' help India meet its growing Energy needs but on the other hand it can, rather will, adversely effect India's future nuclear programs, its security, minimum Credible Deterrence, etc. etc. Now it depends on the people of India and hence, unfortunately, on the politicians to decide will it really serve the Indian interests. Will this deal really help us meet our Energy Needs or will it just act as a check on Indian nuclear capability...???

A Good Read From IBNLive

External Affairs Minister Pranab Mukherjee's categorical statement in Parliament on Tuesday that the US Act on the Indo-US nuclear deal makes 'no external interference' on India's strategic programme has cut no ice with the critics and opponents of the nuclear deal.

On Wednesday, even as reports pour in from Washington that US President George W Bush will sign the Bill on December 18, Indian nuclear experts and scientists are still telling the Government either to renegotiate the deal or tell the US to forget about it.

The Department of Atomic Energy has invited senior nuclear scientists to discuss the Bill with AEC Chairman Anil Kakodkar on December 15.

PK Iyengar, former chairman of India's Atomic Energy Commission, is among leading voices from among the scientific community who have been opposing the deal tooth and nail. "This Bill makes India party to the NPT, the Fissile Material Cut-off Treaty and the Comprehensive Test Ban Treaty (CTBT)," he claims. Iyengar is particularly annoyed by the suggestion that Washington terminate civilian cooperation if India conducts a nuclear test. "It is impossible to have a minimum credible deterrent without conducting nuclear tests," he says.

Retired atomic energy chief Homi Sethna has also slammed the deal. "The nuke deal is not in India's interest. It favours USA and it can walk out of the deal any time. We should explore other sources of energy," said Sethna.

Other experts in the field also say that the Bill will restrain India's further progress on the nuclear weapons front as it completely bars further nuclear tests. So, what are the various flaws in the Bill as pointed out by the scientific community as well as political parties?

Here is a lowdown:-

> Termination Clause: The Bill indicates that the cooperation will be terminated if India conducts any nuclear test. Experts say it will be impossible for India to have a minimum credible deterrent without conducting nuclear tests. It's seen as a willful attempt to curb and contain India's nuclear research programme. The Prime Minister has been on record, saying India would make its own assessment of its nuclear weapons programme in this 'uncertain and unpredictable world'.

> Gag Measures: Indian experts are upset about a provision urging the US President to lobby against nuclear fuel supplies to India if Washington terminates nuclear cooperation with New Delhi. Statements of Policy, Section 103 (a) (6) states that the US shall 'seek to prevent the transfer to a country of nuclear equipment, materials or technology from other participating governments in the Nuclear Suppliers Group or from any other source" if the US terminates its exports under the US-India Act or any other US law.

> Technology Denial: New Delhi had objected to the Senate Bill's suggestion that India could not receive US assistance for enrichment, reprocessing and heavy water production. Yet the final version of the Bill retained this restriction, but re-framed the clause to highlight what is permissible rather than what is not. Section 104 (d)(4) allows the sale of such equipment only to multilateral or bilateral facilities on Indian soil intended to provide 'alternatives to national fuel cycle capabilities' or a 'proliferation-resistant fuel cycle'.

> NPT By Proxy? Experts like PK Iyengar says the Bill, by proxy, makes India party to the NPT, the Fissile Material Cut-off Treaty and the Comprehensive Test Ban Treaty (CTBT), that too as a non-nuclear weapons state. India has steadfastly refused to join the NPT as a non-nuclear weapons state. Others, however, say India has been clubbed in this bracket as "a state with nuclear weapons".

> Fuel Supply Chain: The Bill says US will decide on the supply of nuclear fuel from members of Nuclear Suppliers Group (NSG), while India had claimed the right to stockpile nuclear fuel for a period of 40 years (the life of a reactor). Scientists at Bhabha Atomic Research Centre (BARC) say India will have a very limited advantage in purchasing American reactors without any assured fuel supply.

> IAEA Norms: India had objected to the requirement that the Indian safeguards agreement with the International Atomic Energy Agency should have already entered into force before the US lifts its restrictions on nuclear commerce with New Delhi. Section 104 (b) (2) of the final version still stipulates that "all legal steps prior to signature" by India and the IAEA must have been completed, which means approval by the IAEA Board must have been secured. This now requires India to place the safeguards even before the US completes all its legal steps to allow nuclear commerce.

> Spent Fuel Clause: On the reprocessing of spent fuel too, the bill goes against India's interest, experts point out. Even after four decades, the US has the right not to allow India to reprocess spent fuel from the American supplied atomic power plant at Tarapur (units 1 and 2). While the US does not reprocess its own spent fuel, from the energy point of view, India needs to do that as its entire fast-breeder reactor programme depends on reprocessed fuel.

> Tech Transfer: India had also objected to the provision that nuclear cooperation would be automatically terminated if the country violated the guidelines of the NSG or Missile Technology Control Regime. The final version, however, retains the US 'determination' of Indian missile exports as a trigger for the termination of nuclear cooperation but incorporates an exception that would allow the cooperation to continue if the Indian Government has had no role to play in the impugned export and is taking corrective legal action. This means that India cannot export missiles with a range of more than 300 km to other countries — including those which are MTCR adherents — without triggering the end of nuclear cooperation.

> Export Clause: On the termination of nuclear transfers, the Bill also says: "exports of any nuclear and nuclear-related material to India shall be terminated if there is any materially significant transfer by an Indian person of technology or equipment." This provision holds the government responsible for the act of a single person, which is not acceptable, the scientists say.

> Too Conditional: The BJP says the deal is to bilaterally impose on India conditionalties which are worse than those in the (nuclear non-proliferation treaty) and the (Comprehensive Test Ban Treaty). This is why a slim four-page bill is now a 41-page document. They claim that the main purpose of the deal was to limit India's nuclear weapons programme by subjecting it to highly intrusive inspections.

All these now raise the prospect of rejection of the Bill by the Indian Parliament. However, if this happens, it is likely to come as a surprise for the Bush administration and the US Congress, where most of the Opposition to the deal claimed that India was being given too easy a path back to respectability within the NPT system, and that the concessions being made to India created a precedent that further weakened the NPT.

Tuesday, December 12, 2006

Sunday, December 03, 2006

Munnar: a trip into God’s own country

Itching for a trip since I joined this job, this one was the trip I (un) planned for the trip from the very beginning. A three day weekend in October seemed to be perfect time for the Munnar visit.

Vehicle: Sumo (me, nj, srikar, chopra, bharti)

Indica (Srikar’s friends)

People: 5 + Driver
4 + Driver

Well… leaving Bangalore (at around 9 in the night) I realized for the first is one of the most tiresome, time consuming and irritating part. Anyways at around 12 we were out with most of us sleeping. Cut to 7 a.m. in the morning. We thought we must be 3-4 hours away from Munnar, but then came the shocker. Our driver has taken some random route, we were somewhere near thekkady and still with more than 400 kms to go for Munnar (BTW if you do not know Bangalore – Munnar is approx 400 km itself).

So after little bit shouting on driver we continued the journey. Stopped at 3-4 different places (photo shoots etc.) and finally reached Munnar at around 9 (exactly 24 hours for a 12 hour journey). As we started our ascend the feeling of reaching some heaven started creeping in. Now here we had more good news – due to long weekend the hotels were full and the food was over in most restaurants. After searching for more than half an hour got something to eat, which for vegetarian was ….

And btw, it had started raining by then. So, now the search for shelter began. After we were shown some very random places, a drunk guy came to us say he had a place. So apna bharti went with him and returned after a long time bringing the good news. So, now we followed him back to the place (approx. 2 km) in complete darkness. We were just thinking that the cottage doesn’t belong to some pschyos who might kill us in the nights (ok… it was just a side effect of watching so many Hollywood thrillers :P). With some minor disruptions like taking a wrong turn etc. we finally reached this cottage almost at the end of the road. So there we were finally ready to sleep in a cottage just nice and fine.

The morning: I, obviously, woke up first and when I went out I realized what a wonderful place we were in. On three sides you can just see greenery and valley besides hearing sound of water. It was simply awesome. Soon everybody woke up, a photo shoot session followed and then we left for some place around Munnar enroute to Bangalore. Things that followed were some shopping (chocolates etc.), few photo-shoots, dinner, altercation with driver, passing a reserve forest in a hope of seeing some elephant kicking the Indica in front of us etc. In the morning we were, unfortunately, again in Bangalore fighting with the driver on payment.

Why the trip will be remembered: Overall the trip could have been much better if driver didn’t screw it. But anyways won’t be forgetting that cottage experience - I know for sure.