Is GIDC going belly Up

1st published in Heraldo Nov 2019

We have seen an iconic and well run airline suddenly tank, the “Jet Airways” story is well known, what is not clear yet is why a well run airline with all it flights going full, with dedicated staff who ensured the airline was on the top of its job, suddenly tanked. Indications are that the owners conspired to defraud the airline and thus it bled to death, for any enterprise bleeding to death means that the funds required to run day to day operations are syphoned out leaving nothing to run on. Loyal and dedicated employees are left stranded and flyers left in a lurch when one fine day, the airline finally stopped operations. Till today not a single person is held accountable, speculation is rife that the founder Naresh Goyal is responsible but that means nothing to the employees who are not paid, flyers who still wait for refunds on cancelled flights, creditors awaiting payments and ofcourse banks (read taxpayers) waiting for their money or is a write off a given. Should it not be imperative for the powers that be to act quickly and recover the money and clear the dues of those effected at the least if not be able to revive the airline?

The recent news report that GIDC is unable to fund its new industrial estates due to paucity of funds is alarming and is indicative of another Jet Airways in the making with even more serious ramifications. The two estates Panchawadi and Latambarcem have been on the cards for a while now and land allotments have already been made. However infrastructure is far from being anything but ready. Can you see the plight of those entrepreneurs who were allotted land in  these estates. At the Vibrant Goa inaugural, the CM promised fast approvals in future, but what about those in the pipeline.

We will not talk about the new industrial estates announced as the land has not been acquired and given the new acquisition rules, GIDC’s empty coffers and no Government funding possible, this announcement will remain on paper for a while. However at present no entrepreneur is effected.

At the recently concluded Verna Industries Association, the Industries Minster, Mr. Vishwajit Rane and GIDC Chairman Mr. Glen Ticklo, displayed serious intent to bring GIDC and the industrial climate in Goa on track. They were keen to sort out the financial woes of GIDC. Mr. Rane said the Government would try and auction 5 lacs square meters of land as that was necessary to tide over the financial crunch, he also promised allotment of lands to those companies of repute who would also give ancillary suppliers business. Mr. Ticklo promised faster decisions in GIDC. These are welcome and entrepreneurs must not just watch but work actively with Government to ensure it is a reality.

One disappointing aspect is the fact that the Government feels that “looking ahead” is the best option. This means that mistakes have been made and since they were made by previous dispensation nothing can be done to recover the situation and thus let bygones be bygones.

Consider the following bad decisions taken in the past, lower transfer fees and delayed payment fees not collected from the transaction involving the now Dy CM Mr. Kavlekar and Watson. Maybe Mr. Kavlekar should voluntarily pay up in the interest of Goa and development of Goa and set the example for good public behaviour. There is the SEZ land allotment which has now been reversed and GIDC has borrowed heavily to pay back the promoters. Why is there no action against the GIDC officials and promoters who conspired to cause a loss to the exchequer? Infact this transaction is going to put a lot of pressure on GIDC with almost 1.16 crore interest a day burden. This can be the proverbial last straw on the camels back if something is not done quickly.

Then there is the surreptitious transfer of Metastrips illegally to a logistics company. The GSIA led by Mr. Shekhar Sardesai had led a strong fight against the ills of GIDC and got the rules modified to prevent allotment of industrial land to commercial projects. Despite this rule in place the Government transferred almost 2 lac sqm in a day, not withstanding the fact that the land was under lien  to a bank, and the transfer fees which is wrongly calculated was not fully paid. This happened a day before the elections results, is it not strange because normally no government work gets done, under the guise of election code. Lastly there is a huge backlog in collections of lease rent, even as plots are illegally sub leased. Who is responsible for monitoring the situation?

While the above transactions cannot be reversed because of cumbersome procedures, what GIDC and Government can do is 1) recover the dues as per the rules 2) penalise officials involved in these transactions which have caused a loss to the exchequer where applicable. 

These actions will have two effects: one, promoters will hesitate to short change GIDC in collusion with officials in future and two, officials knowing there is a consequence will make sure they follow the rules in force and deliver as required. RIght now, everyone knows nothing happens and so they merrily do what is required to feather their own nest at the cost of the exchequer and GIDC.

Industry Associations must join hands with the Government and GIDC and work out solutions because if the GIDC goes the Jet Airways way, the effects will be felt on each and every unit in the industrial estate and that will be devastating. Given we have a responsive government in power, this appears to be the best time to make a change and salvage GIDC. The writing is on the wall, lets read it and act.

GIDC Board Needs Support

First, I have to apologise for saying GIDC was going to pay the SEZ promoters 15% interest, the rate agreed is simple interest earned on the FD’s made out of SEZ funds less tax paid. This appeared in my column “Not Again GIDC dt 21^st August 2018”. This error was pointed out to me in a healthy discussion on the functioning of the GIDC board by an industry colleague.

However, that was not the only error, the impression given in the news reports was that the GIDC Board had decided to pay the promoters the principal and interest, however it was a decision apparently taken by the Council of Ministers sometime in July 18 and the job of GIDC was to organise the funds which at present are non existent. Unfortunately, the GIDC board was not given complete information. GIDC management gave Government information with mistakes without approval of the GIDC Board.

Assuming the SEZ promoters funds were parked in FD’s and earning interest, it should be quite easy to believe that the principal is available. That is not available is evident from the fact that GIDC is considering auctioning part of the SEZ land in Verna, proceeds of which will be used to pay the promoters. This itself will cause problems because GIDC already has a policy as to how much land can be allocated to utilities, which is the land that can be auctioned. GIDC proposes to auction 50% of the land available post allocation to open spaces and IPB, this is against the existing policy where utilities can be only 10% of available land. They also missed the fact that today as per GIDC policy only 7.5% needs  to be allotted to open space. Whoever prepares documents which Board members rely on to take decisions should be careful and through so that Directors can make a good informed decision.

However GIDC policy could not be considered by the GIDC board as they got instructions from GoG.. The GIDC policy as notified, is very clear that interest cannot be paid on land that is surrendered to GIDC. This fact though mentioned clearly seems to have been missed in the decision making process both at the cabinet level and GIDC board level. More over, the fact that the High Court of Mumbai at Goa has declared  “allotment of lands made to the companies is illegal, the possession of the lands will have to be restored to the GIDC”, was not highlighted to the decision makers. Was such an important aspect/fact left out by mistake or deliberately?

Another argument in favour of paying interest and getting the land back quickly was the analogy of the tenant and landlord. Landlords will agree to settle tenants quickly so that they can get back their land and make a killing rather than be stuck in litigation. If this logic were true we would not see so many landlords and tenants battling it out in the courts. The point is GIDC surely behaves like a landlord more and a development body less normally. In this case, because of the lack of information and veiled political expediency to get the land back and make it plots, the board lost the plot. Why should you pay interest for something illegally allotted in the first place. Why has the Board not demanded any action against those responsible. The money for the land auctioned/leased today or tomorrow will always be increasing given the fact that land is a finite commodity and not perishable. Time is on the side of GIDC.

Focussing on the interest component, it is a figure which should be constant. Meaning simple interest for Rs 100/- at 8.5% p. a. should be Rs 8.5 every year. In GIDC most of these calculations are done historically by the Estates department and not by the accountants. This leads to a situation where there is almost 23 crores difference between what is reported in the balance sheet and what is calculated by the Chartered Accountant. There are four different interest calculations and each arrives at a different answer. Should this not raise eyebrows? Also, there is a difference between what GIDC has calculated ie 256.19 crores and what was submitted to the SC by the AG on behalf of Government of Goa/GIDC ie 256.56 crores. Approx Rs 37 lacs, since it is public money should these figures not be accurate and if there are difference should they not be reconciled and corrected before submitting to Cabinet/ Supreme court? Or does it not matter as no one asks questions? If anyone has questioned, there appears to be no record.

The Congress has demanded withdrawal of this payment or settlement but they fail to mention the fact that the Leader of the Opposition Babu Kavlekar who was Chairman of GIDC during the allotment of SEZ has been let off the hook by the same cabinet decision. So is the Congress making a noise for the sake of making a noise? Can we be sure that there is no quid pro quo. The Congress who is threatening to hold liable all current board members who are party to this new decision but are silent on the greed of those who belong to their own party who created this mess in the first place.

Going forward, apart from taking a better decision based on facts with reference to paying interest, GIDC agendas minutes and information presented to the Board must be considered a serious activity and if there are half truths or omission, someone must be held responsible so that every decision taken by the GIDC Board reflects the commitment of the board members. Lets hope one day GOA FIRST will be the operating policy.

Goan Hinterland on a cycle: Any takers?

1st published in Heraldo in Dec 2019

The wave after wave of cycles exiting Ravindra Bhavan recently, it was a riot of colour and enthusiasm signalling the start of the XASTI 100/50. The nunbers told a story of Goa’s fast developing cycling for fitness culture. In all 276 riders completed the course within the allotted time. A record 306 registrations was encouraging. The riders came in from all parts of Goa, Vasco, Panaji, Ponda Mapusa to mention a few and Kankavili Mumbai and Bangalore too. There were a couple of foreigners too.

The route offered the best of Goa’s Southern hinterland, it passed through beautiful villages of Curtorim, Macazan, Chandor, Assolda, Zambaulim, Rivona, Caurem, Ambaulim, Balli, Fatorpa, Quittol, ONGC Betul, across the bridge to Cavelossim, Varca, Colva and finally back to Ravindra Bhavan. The route is scenic as well as demanding with a couple of tough climbs especially the one peaking at ONGC gate. The riders would have loved to have time to take pictures along the route, but the need to finish within the stipulated time was a deterrent. The fact that you will see many cyclists with proper gear, especially a helmet, riding around Goa, points to the success in the efforts of a small group of ardent cyclists who got together a few years ago and started cycling club in Panaji and now there are clubs all across major Goan cities.

Yours truly has got involved with cycling recently and found many benefits to cycling apart from the fitness aspect, which is a given. Age, too is not a factor, among the current crop of cyclists, the oldest, Wing Commander Ajit Guglani is 77  and the youngest Ronel Gomes all of 8. The XASTI 50 was introduced to encourage women and youngsters to take up cycling as a means to keeping fit. A total of 36 women completed the course. The cyclists come from all walks of life so one meets and gets to know different types of people.

In Goa, there are many oldies who cycle around the village their whole life and had a ripe old age to show for it. Now the trend is towards endurance cycling, 200, 300, 400 or 600 kms and Audax India certifies the rides under the BRM (BREVETS DE RANDONNEUR MONDIAUX) label. BRM loosely translates to long distance endurance cycling. A super randonneurs  or “SR” is one who does all, ie 200, 300, 400 and 600 kms rides within the stipulated time in one year. It is notable that “SR” are ordinary folk with no history of being athletic, but it has contributed to them being fit. India’s goal for a fit India is well served by cycling.

The biggest advantage is being able to go around Goa, at a slower speed compared to a car and be able to see Goa. Since cyclists use back roads or rather avoid highways one gets to see villages and village life up close. One gets to taste the food at small restaurants and cafe’s doting the countryside. Basically one get the feel and beautiful panoramic views from the seat of a cycle.

There is a disadvantage too, it is safety. The streets are not all lit and so riding at dawn or dusk has its risks. Potholes and unmarked speed breakers can spoil a ride pretty quickly. If you can let sleeping village dogs lie while you cycle past, then you are safe from snapping jaws. Injuries because of these reasons is not uncommon.

Cycling has the potential to grow Goa’s tourist enterprise on the seat of a bicycle. It has the potential to make a few more entrepreneurs. It has the potential to involve those in the hinterland in Goa’s tourism activity without them moving to the Coast. Cycling can benefit the Goan economy.

At present there are two types of possibilities, one morning or evening rides can be offered to adventure tourists. These will be limited to a radius of 20-30 km around the known tourist destinations, and given the generally hot weather, restricted to early mornings or late afternoons when the Sun is generally cooler. The second option is a la “ Tour de Goa”, a three day cycle ride that starts in Panaji and meanders through the hinterland and the riders return on the third day. Two nights are spent in the hinterland. There are already two entrepreneurs offering the day variety.

The advantage of the tour is tourists can be taken into the hinterland in the morning, there they can check into home stays in the village. They can have a local home cooked lunch. After a siesta possibly under the trees, they can explore the surroundings and local sight in the evening, dinner with a local folk dance and bonfire. They can then move to the next village in the morning. This can be repeated for 2 to 7 days or more if needed.

The advantage is tourism comes to the village, there will be demand for local food produce, folk dancers, local artefacts and homes will be rented. The resultant improvement in local economy will boost rural incomes and stem migration to cities.

As we ride into 2020 on a cycle, hope this idea catches fire and we not only have a healthy and safe year ahead but also a prosperous one, not only for the cyclists but also for the population of the Goan hinterland. May cycling improve the health and prosperity of all connected.

 

Editorial in Fr. Agnels Call

“Jobs or lack of them” is a huge topic for discussion in Goa, and maybe therein lies the problem, we typically are NATO on this subject, ie No Action Talk Only.

The oft repeated claim that there are no jobs in Goa is something that I would like to dispel. That the only jobs available for Goan youth is in UK with a Portuguese passport is also something I would like to debunk. There are jobs available and there are jobs that one can create. How and what is the attitude one requires is what we need to focus on.

Look around you, at the beach in the market, in companies, everyday people from the rest of India are making their way to Goa, and finding the streets paved with gold. Daily a new shop opens, daily a new restaurant comes onto the scene and daily we find new job seekers being added to the list of those who have jobs. Have you seen people from other parts of India who have come to Goa looking for jobs crying that there are no jobs. The only people who cannot seem to get jobs are goans, the only people who are complaining are goan job seekers and their families.

As an employer for the last 25 years, the change is visible, we used to have no difficulty filling up posts earlier and now we struggle to find locals. The same is the case with industry colleagues. The main grouse of the employers is the fact that the job is not important, ability or experience is not important, how much salary will the job pay is the most important question that the employer has to answer.

Why and how did this change happen? Sometime in the early 2000’s call centres became a rage. The primary requisite for a call centre employee was a good command over the English language and goans were pretty good at that. The salaries that call centres offered was much higher than what other trades gave for freshers. So much so there was a rush for call centre jobs. Everyone was working at a call centre, there was a huge rush, qualified Doctors and engineers found themselves taking up these jobs. Apart from the salary, the designation given too were very fancy.

Parents and faculty had no clue what was happening. The general idea that a fat salary and a better sounding designation meant a great job and all was well. However, in reality these were mostly dead end jobs, two or three years down the line, the employee was old and had was not experienced.

A receptionist dealt with phone calls, handled walk in customers, did travel arrangements for the boss, typed some letters etc, after two years the employee would be more confident, able to handle different situations and people, that is experience. In a call centre job, the name given was an alias, the job dealt with issues of customers based in a third country, the continuous night shift had their own medical issues. Two years down the line they had just grown older. Can you see the  difference? But the damage was done. Now the expectation for starting salary escalated, traditional manufacturing and hotels could not keep pace, the gap had to be filled and outsiders happily filled the void.

The other major phenomenon was cruise liners, again there was a rush for these jobs at sea. The initial years were reportedly hard, but once you got to the deck side and earned tips, life became rosy. The path was generally get a job in a hotel so as to get relevant experience. Then they would go aboard, hotels too got wise as they were being used as stepping stones.

There are jobs available in Goa and there are opportunities to do business as well. The point is where does one start. Let me take an example of potential employees applying to get into “HR” positions. When asked why this particular field was chosen to make an entry into the working world, 99% do not have a clue, they just feel it is a cool job to do. 99% have done no research on this job profile and know nothing of what skill sets the job profile require. So really they do not know if they are a fit for the job on hand, but they apply anyway and basically have a target salary in mind. There is nothing wrong in have an expectation but can you deliver from your side to meet that salary expectation? Our education system surely does not make you capable of “plug and play”, you need “On Job Training”.

For engineers, most of whom have really only passed their exams and recall none of the basics associated with the subject. It is actually really disheartening. The engineers want to be doing work in quality department. If asked why they choose this particular job at the start of their career, they have no clue. It appears to be less stressful maybe. Another factor is the graduation is in say electronics and the jobs available in mechanical. This should not be an issue. The graduation was done in a subject that was presented because of grades. In life, if the objective is to become a CEO or owner of a business. One does not become CEO Electronic, but CEO looks at production marketing, HR etc. At the top, everyone is multitasking, why restrict your choices at the bottom?

The attitude at the start of the career is something I would believe needs a relook. Some students are very sure what they want to do and how they are going to achieve their chosen path, however in my experience this type of student is a minority. Most do not know what jobs are available and what job they would like to do. In addition our education system is very bookish with absolutely no exposure to the real world till after graduation. A few sandwich courses insist on intern-ship of 4 to 6 weeks.

My advice to those seeking their first job is very simple. Present yourself to the Company as a resource available to do whatever the Company deems fit to allocate. Accept the salary offered and start the job. Make sure you attend work everyday in time, this discipline is important. While doing the jobs allotted make sure you understand what you are doing, if there are related skills you need to master work on them. For eg: you are following up outstanding payments, you will learn how to handle spreadsheets, practice remembering the names of the people and businesses you deal with, improve your telephone etiquette, do not wait for the Company or boss to teach you, use google and Utube to teach yourself. Accept outdoor jobs wholeheartedly, they teach you more.

Once you are working, observe what are the jobs available and see if you prefer any job to what you are currently doing. In your spare time or after work, ask your colleague to teach you the job, offer  to help them finish some pending work. This way you will get to learn and also find out if it is really something you would like t o do. Pick jobs which have potential to make a career in.

If you are good at your job, you will get noticed and salary will follow. Patience is the key. There is no point jumping jobs for a few rupees more every six months. At some point it will catch up with you and anyway you will not be adding any worthwhile experience if you shift every now and again. If internal vacancies come up, do not hesitate to apply. Once you have the experience, you will be able to ask for more money if you also demonstrate that you can deliver. High fliers are usually rewarded with better perks and emoluments so as to retain them.

Today the opportunities for doing business has increased manifold. Funding and support is also more easy to access than before. If you have worked a few years, the experience becomes an asset when you jump into the waters of entrepreneurship. You have experience, contacts and above all confidence. However do not expect it to be a smooth highway. It is not and never will be, there are up and downs like everything else in life but overcoming these challenges is what makes entrepreneurship interesting. We cannot wait for government to make a business for us, we have to find out what is lacking in society and design a product or service to meet that need, and build a profitable business around that product or service.

The last advice I would give is join a social group, Jaycees,YFC, Rotractors, here one is exposed to organising, meeting different people, leadership roles and travel. These aspects make these social groups ideal training grounds for youth.

To summarise, there are jobs in the market, they may not be in the field we have studied but that should not be an issue. The idea should be to grab the job that comes your way and work your way up quickly as possible. Do not chase money, do a good job and money will follow you. When you are working ensure that you are disciplined, be on time and regular. Upgrade your skills, learn new techniques. The easiest way is to help colleagues, you make new friends as well as learn.

When asked to write this editorial, I was wondering how I could avoid the trap of crying wolf, what was it I could say that can give youngsters direction. What is it that can motivate youngsters in today’s  world of “instant gratification”. I do hope I have given you some food for thought and wish each and every one of you wisdom in handling the start of your careers so that you are successful. Its your carer you take charge of it and make it happen.

Deu Borem Koru

Fire in the Mountain……Run or Act

1st published in the Heraldo Jun 19

Mount Sonsoddo was on fire……..run run run. With the smoke creating health issues for the residents around the dump forcing them to leave home and heath for a few days or delaying the opening of the school nearby. These measures are temporary and have no connection to the future of the dump. Surely it is not time to run but ACT and the action must be both from citizen and Government. The latter usually acts in the self interest of the decision makers and hopefully this time it will be different and not indifferent.

The fire self ignited itself or the dump was set on fire has not been investigated and from the reports there is no attempt being made to get to the root cause, it seems to be buried under the piles of mud used to snuff out the fire. One hopes that there is no scam in the short tenders that would have been raised to buy the special chemical which seemed  to have not effect but was used because it was purchased and the mud that finally covered everything including the cause.

In the Capital city we have an alarming situation where they too have nowhere to send their waste. A quick fix waste handling plant is being proposed within two weeks, Wow is it so easy? If yes why not have these plants in every panchayat?

This fire and shortage of treatment facilities has created an awareness that something needs to be done urgently. Formento’s quickly took the opportunity to offer to quit running the plant based on the fact that segregated garbage was not delivered by the Municipality. Collecting unsegregated waste is illegal as per the rules currently in force.

If we wait for the Government to act we will surely see this problem explode. The smell post the burning may have effected people around a small radius, so it will be easy for many to say, this is not in my backyard, I have to do nothing. Wrong. It is high time every individual living around Mt. Sonsoddo or anywhere in Goa has to act. The usual question is “I am just one person how can I contribute to tackling the garbage problem surely it is the Governments job”.

In Panaji they collect only segregated waste and now the Margao Municipal Council is insisting on the same, it is high time every one in Goa does the same. The most important factor is segregation at source. There is no solution on earth that can take all types of mixed waste and handle it efficiently. Mt. Sonssodo is loaded with toxic chemicals from batteries and medical waste, the rains will send this poison into the ground where it will further contaminate the already contaminated ground water.

Clinton Vaz an eco warrior and we need many more like him, has shown it is possible to segregate using a 4 or 8 bin system successfully. It may not be possible for individual houses to have a 4 bin system immediately but they can still collect the waste separately so that rag pickers or recyclers can have easy access to the same.

Housing Societies can come together and mark an area where such segregated recyclable waste is collected in the 4 Bin system, so that it makes economic sense for the recyclers to collect. The watchman can be given the duty of managing the area and the incentive can be that they keep the proceeds from the the sale of the material. The first bin is for “paper”, the second bin for “plastic packaging/bags”, the third bin for Hard plastic/Glass & plastic bottles and the fourth bin for non recyclables i.e. chip packets, styroform. The society can decide if they want to monetise or allow the rag pickers to take the waste. The fourth bin with non recyclables can be easily collected by the Corporation and since all is sorted it is easy to treat.

The wet waste can be directly sent to treatment plants like Saligao or Sonsoddo and this will reduce the load of sorting at the plant. Wet waste where possible should be composted and the compost used in the kitchen gardens and for potting plants. Again composting is easy be it an individual residence or a block of residences. However for groups one should have someone monitoring the compost pit, usually the building watchman. The reason is that compost pits can smell pretty badly if not taken care of or when they are overloaded and that defeats the purpose and soon the residents give up. These actions will reduce the burden of the huge load on the waste management centres and surely effect the growing height of Mt. Sonsoddo, or any similar mountains of waste in the making. We cannot generate waste irresponsibly and expect Government to handle.

The Green Goa Works was managing the Margao SGPDA market waste for sometime, they managed to segregate and send 1MT of wet waste to the bio gas plant and the methane so generated was used by a nearby hotel. One wonders what happened to this experiment. If it was working then similar experiments must be done for other large commercial areas.

The Government on its part should strengthen the waste treatment plants, set up centres for collection of hazardous waste viz: batteries, CFL bulbs e-waste, collection and disposal of bio medical waste. The other important factor is awareness that should be created using a carrot and stick approach. The stick should be wielded quickly on people who dump unsegregated waste of the roads and heavy penalties and confiscation of vehicles so used will act as a deterrent.

Let every citizen join the battle against waste and let our leaders see the big picture and make decisions knowing full well that these actions will have an effect on everyone’s future: OUR CHILDREN.

Can We have Good Candidates

1st published in Heraldo Feb 2020

The election results in Delhi have generated a lot of interest and predictions for the future. A new discourse has started, if performance during the regime is going to be a factor in future elections or will freebies be the order of the day. These results give the impression that the voter is discerning and is now looking forward to a new type of political class.

Arvind Kejriwal heading the AAM ADMI party has undergone a major revamping in outlook and approach, this has earned him an unprecedented 3^rd term as Chief Minister of Delhi. He moved from blaming and finger pointing to buckling down and doing work on the ground. He focussed on the usual Bijee, Pani and added Education and Health. He refused to be drawn into any “non value adding” arguments with the Centre and more importantly the Governor.

He did offer freebies at a certain level, over that one had to pay for the services provided. One can argue that it is not right to give anything free, but today almost all State Governments are jumping on the freebie band wagon. Personally agree with the concept that for the minimum consumption required to live with dignity can be free, eg: “X” litres of water and/or “Y” units of electricity. Above that one is charged. This way people are forced to register their connections officially and theft or losses are reduced.

Many political parties are looking at a revival and change in their fortunes in the coming elections. It appears that every party has two options, they can showcase their work and opt for freebies. The option of freebies always exists for a ruling party and as a promise for an aspiring political party. The proposal here is that there is another option, better candidates. This will need two pronged approach: Action political parties must take and actions Election Commission possibly.

We must look at a new set of people who can be ushered into politics so that a freshness is infused. The recent comments where even the Supreme Court has asked parties to relook at their selection criteria for candidates, they have asked them to highlight the criminals records of their candidates almost as soon as they declare their names for elections. Logically, should a criminal be a law maker? But, yet politics seems to thrive on illogical decisions. We can also avoid, the usual candidates, ie PA’s or wife’s of elected reps or social workers

The need of the hour is that every party should focus on the credentials of the candidates. The electorate should be given a better choice and one that can make a difference in governance.

We keep saying we wish to become like Singapore, yet we never look at the quality of the Singapore politicians. In Singapore one has to be a top performer in profession before aspiring to be a politician. In India, for a peon’s job in Government one needs a minimum qualification but for a politicians there is none. So the first step is to select candidates who have an education, preferably from a reputed institution and preferably a post graduate. Yes, just having a degree does not guarantee leadership qualities, so the candidate must have worked in a leadership role for a minimum number of years, let us say for example 10 years. This is enough time to polish his leadership capabilities and also to mature.

The next thing is that the candidate is financially secure, he should already own the basic necessities in life, eg: house, car and have a minimum net worth. Ofocurse, if he is a successful professional he would be financially secure. Today, many politicians are rags to riches stories when in power, but once out of power their fortunes also dwindle. This tells its own story. A financially secure person is more likely, there can be exceptions, to take decisions for the good of the State than for his or her own benefit.

The candidate should have no criminal record. This includes and cases which maybe in court but not where judgement is awaited or under appeal. In other words the candidate should be spotless.

Given that, we have such a huge population, it surely will not be difficult to find such candidates, whose track record will speak for their ability to deliver once elected.

The role of EC will be to push for laws to prevent party hopping. If not, elections should be had for individuals who then choose their party based on the best deal, oops read, best for constituency development. A suggestion, assuming one feels stiffled in a party and wishes to change, please do so but no leadership role and no contesting elections for five years. It will help the person to understand the values of his new party. There is no doubt the anti defection law needs strengthening, else faith in the system will be eroded.

Another change would be no independents, you cannot run a government with strength one. So ideally a party must contest and that too they must stand for elections in at least 50% of the constituencies, meaning they have a chance of forming the Government. Just standing in a few constituencies to create a king maker or trouble make effect does not help the State or Country, though there maybe some personnel benefits.

In elections we must move away from this current thought process of voting AGAINST someone or something to voting FOR a party and its manifesto. In Delhi, this was the difference people voted FOR a new way. Let us all try and push our representatives or aspiring representatives to make a change. 

Formalin: Can it stem rot in political system?

1st Published in Heraldo in Nov 2018

The formalin fish row has got everyone goat and it does not look like it is settling down soon in the near future. The ultimate sufferer continues to be the common man be it the ordinary fish eater or the ordinary fish seller. The root cause of this whole issue is the underlying political aspirations. Most of Goa’s issues stem from this fact, political aspirations which are different from Goa’s aspirations.

Recently two worthies from the duly elected assembly were spotted grinning as they boarded a late night flight to Delhi,for business they said. The next day they announced they had resigned assembly seats and from their political party and had joined the ruling dispensation. Business it is. Never mind that the political ideology of the party they left and the party they joined are as similar as chalk and cheese. Is being a member of a political party not mean you believe in the concepts or manifesto? Apparently not, the position before and after getting elected is totally different. Before elections it is with folded hands and numerous promises. Post elections it is the will of “my” supporters prevailed and the promises, what promises they are meant to be broken.

However, the shocking aspect came the next day. One of the worthies declared that he was promised Chairmanship of a Government Corporation and Ministerial position ASAP. Wow, is this not corruption, he resigned his constitutionally elected position as an MLA, to accept some favours in return, if not corruption what do you call it, REWARD?. That is what the papers reported a few days later, both the worthies were rewarded with Chairmanships of Government Corporations, as if Government Corporations are like channa to be distributed while sipping champagne and toasting the fact that the public was fooled lock stock and barrel.

The Congress not to be outdone, rushed to the rescue of the former BJP Chief Minister to sympathise with him and most likely to request him to stand on their ticket. Topsy Turvy, assuming he wins, surely he will say, I was from that party and so I am going back and no one can do a fig leaf to stop him. But it seems no one is learning from history and the saga of decay continues.

The rot in the system is again highlighted by the fact that we have an ailing Chief Minister who for reasons known to all he is being kept as Chief Minister only because if he resigns or steps down, his colleagues cannot agree on his successor and thus will end the term of this Government that was anyway built on chicanery.

When someone is sick, he takes sick leave and uses the time to recover. If it is a temporary illness like a fever no issue if he continues with a day off. But when one is afflicted with a pancreatic ailment which has now graduated  to pancreatic cancer officially, any right thinking person would decide that the ailing CM needs rest and peaceful time with his family. Unfortunately our politicians appear to be neither compassionate not right thinking. They continue to make absurd statements like “he is recovering”  “he is much better” “he contributed meaningfully to the discussion”. Really, I do wish none of these politicians or their relatives ever have to fact the same situation because they will realise how much of a disservice they are doing to the CM and his family directly and to the State at all levels. Am happy civil society stepped in because politicians have failed us.

The mining dependants are rightfully waiting and wanting mining to start. The rotten powers that be go on promising a quick start in the near future. The most recent promise to restart mining as it was must be made good by 30^th November 2018, most likely that will be followed up by more finger pointing conveniently to the Centre. The question that begs an answer is why is the Government reluctant to go the auction route and restarting mining ASAP. Other States have done so and are reaping huge bonanza’s in terms of fees and do not have to beg the centre for loans like in the case of Goa. Had the State moved to auction the mines, by now they would have started and the mining dependants would have got what they are asking for. Political or rather politician interests are more important than the States interest. So mining dependants continue to be used.

The Political class has come down heavily on uncooperative bureaucracy. Yet these same bureaucrats managed to amend the TCP Act and add a section which allows anyone to apply for a change of zone on a “case to case” basis. Why do we need these discretionary powers, why are we not focussing on a regional plan or development with some thought to the future, future of the State and not any one person. The reason is in the recent report that now Orchard lands can be converted to settlement on payment of a fee under this amendment. This means that all conversions done under RP 2001 and stopped because of RP2021 are now converted in one stroke. The Government should inform which large orchards owners have benefited? Alas, the rot is deep and and appears well set. I do hope and pray someone challenges this mindless amendment.

We will need more than formalin to stem this rot, we will need a revolution of thought and a clutch of selfless leaders to extract us from the unholy mess. If you are game, if you want change use you vote wisely.

Unearthing Black Money: Start with election affidavits

1st published in Heraldo 

The demonitisation policy was touted as the biggest move in India’s history to break the back of the black economy and as a bonus the counterfeit currency would take a hit. A master stroke which would kill a minimum of two birds with one stroke.  The counterfeit industry would have surely taken a hit and it will take some time to generate new genuine looking counterfeit notes, ofcourse good photocopies are already available.

The many unscrupulous bankers colluded with the cash hoarders and the demonitisation policy failed miserably with just about 3% of the old notes staying out of circulation, this means that the effort to hit the black economy failed miserably. It succeeded in creating hardships for the common man and the common man’s sacrifice has come to nought as the objective was not met. Infact the cost of this operation will be even higher than the 3% which was shut out.  

The Government is not very happy with the situation, so to try and pull back some of the illegal cash that has slipped thru the dragnet, the IT department has gone into overdrive to seek out the black money. They have received lacs of responses which they have to go thru and that would be akin to searching for a needle in a haystack.

However, one wonders why the Government is looking at such methods, there are simpler ways to get to a major portion of the black money generation and owners, the politicians. It is an open secret that this strata of society is responsible for generation i.e. fees under the table for permissions have to be paid in cash so that they can use their discretionary powers and any and every contract usually has a kickback component. Thus they also accumulate this cash all the time and appetite is insatiable. Yet there is not a single action that would attempt to get at some if not all of the black money from this class. The 80:20 rule is pretty much applicable, 80% of the black money will be with just 20% of our ruling class.

The recent elections saw all the aspiring candidates file their affidavits of assets and liabilities and rather than shift through lacs of explanations of why “X” deposited “Y” amount of cash which will take forever, the IT Department should check out these affidavits especially of those standing for re-election as they can easily have a compare affidavits and see where there is evasion.

Let’s take an example of Mr X. He has stood for elections in Goa in 2007, 2012, 2014 and 2017.  He lost in 2012. His net worth increased 80% in 5 years.ie an average of 16% /year, during the period he was an MLA. However, post his election loss his net worth increased by an average of just 1%/year. Surely his salary as an MLA could not have been the contributing factor to the phenomenal growth of his net worth when he was an MLA. In 2014, MP election his income as a non MLA dropped to 62 lacs against 1.6 crores he showed in his IT return for 2010-11. In 2017 his income in the IT return drops to a mere 27 lacs?  

Lets take another example Mr B, a sitting MLA. In 2007 he was a small time businessman with almost nothing to his name, even his qualifications he subsequently watered down. In 2017, he realised he had brought an apartment in 1993. Do these affidavits have any sanctity? By the end of his first term he had tripled his assets,  and multiplied these assets an astounding 6 times in the last five years. Just bank deposits went from a measly 5 lacs to 1.5 crores. His income increased 50 times from 1 lac to 50 lacs. He even managed home loans from LIC and the Goa Legislative assembly while the affidavit dose not reflect any such home. Does the Legislative assembly not keep proper track why the loan is sanctioned?  The market value of an asset goes up seven  times with three years when for all practical purposes real estate has been flat, was the acquisition undervalued? We could go on.

There seems to be a direct corelation between income before and after becoming and MLA. The IT department is always looking for sudden spurts in income or assets and that is why they have raised questions on the cash deposits. So should they not be studying the affidavits of MP’s/MLA’s to start with and then move on to MLC’s and Panchayat members?

There are some gaps in the information asked for in the affidavits, for eg: Only income declared in the last IT return is mentioned, they should provide details of income for each year if a person was previously elected. The investment in insurance is a grey area, why not ask how much was invested in insurance every year? While the cost of acquisition is mentioned, what is not mentioned is the market value at the time of acquisition.

While  most businesses had a hard time maintaining their bottom lines in recent times but for our MLA’s that is a small matter, they turn into King Midas once they become MLA’s and better if they are Ministers. Maybe a few are good businessmen, but to believe everyone of then is honestly earning the huge increase in income and assets is to be surely naive. So in keeping with PM Modi’s intolerance towards “kala Dhan” the focus should shift to screening elected representatives and ensuring that the black economy is tackled from the top and not starting with the common man. A good IT officer will do a much better analysis and unearth much more if allowed.

Acknowledgement: The data it readily available on the website of Association for Democratic Reforms. www.adrindia.org

GST: Game Changed Game On

Published in Business Goa

The text books warn every aspiring manager or entrepreneur that Government policy effects business decisions. The new Goods and Services Tax (GST) is not a tinkering in rates or a small course correction, it is a new tax law. There is nothing like it before, it has been in the making for almost 11 years and finally rolled out on 1 July 2017. A landmark day in the history of India for sure. Every industry will have to rework not only pricing but marketing, distribution and manufacturing strategies.

The good part is that India is a IT power house and the key element that will sustain this ambitious project is the GST Network. Without this network it would have been impossible to manually operate the GST law. The network is a public private partnership. Politics apart everyone knows that GST makes great sense.

In the old days there used to be businessmen who listened carefully to the budget speeches and whichever product or commodity had the highest tax rate, that was the business they would dabble in. Their logic was simple, the higher the tax rate the better the profit as they operated under the tax net. Slowly the country shifted to standard rates and did away with the obscene high tax rates, but these businessmen continued to fly under the radar and avoid paying tax with or without the blessings of the tax officials. The GST regime will make it almost certain that these type of businesses will be extinct. From a legitimate tax paying point of view not a bad idea. They will now have to rethink their strategy and become tax compliant.

Every business will have to think differently and the GST regime will throw up opportunities which were not worth  pursuing in the Central Excise/VAT regime that has just ended. The octroi agents at the check nakas will be looking for jobs as there will be no check posts, transport turnaround will be faster and thus sooner than later, cheaper.

All companies will now first and foremost restructure their selling price. Initially it will factor only the indirect taxes, eg: in an interstate purchase is part of the bill of material, then the input landed cost changes because the CST of 2% which was a cost earlier will now be replaced by IGST (intergrated GST, payable on interstate purchases) for which credit can be taken. Then on “supply” (no more using the word “sale”) one has to add all charges eg packing transport discount etc to arrive at the transaction value on which GST is applicable. In 80% of goods and services the GST rate is 18% which is lower than the min of 25% under old regime.

Later, as market forces and competition kicks in the Companies will begin to factor the additional GST credits previously not VATABLE into their costings and lower prices to maximise supply. Eg: previously CE/VAT paid for purchase of an air-conditioner was not VATABLE, now you can take credit, The same applies to car maintenance or insurance.  It is market forces and not the anti-profiteering clause in the GST Act that will bring prices down. Unfortunately the law allows for a committee of Babus to check if the benefits of GST are passed on to the consumer, with a tinge of sadness this keeps the door open for interference which is done away with for the most part. No interface with any official only through the returns which are filed online.

This means that every Company will first of all become computer savvy, no hand written bills which are given to a CA to enter once a year or quarter, now it will be monthly and that too by the 10^th the supply details have to be uploaded in the online return GSTR1. So, huge opportunities for those involved in computers/software and maintenance as usage will increase manifold.

Today most net savvy users familiar with online shopping know that before closing a deal they need to check the rating of the supplier, if it is bad they will avoid making a purchase. Similarly if a dealer does not file his returns on time or pay his dues by 20^th of the succeeding month etc his rating will be effected(this is still pending though). A customer can use the dealers GSTIN and check his rating, if it is adverse he will avoid that dealer because buying from him could mean his ITC (input tax credit) will be possibly effected and he will have to wait longer if disallowed. So every dealer will have to focus on ensuring his rating is top notch, surely will be a pleasure dealing with good suppliers.

In the old regime if one sold goods interstate, the tax rate was 2% against a “C” form. Invariably post the transaction everyone slept, three years later the supplier at the time of his assessment would realise that the form was not available, he had to then begin the followup to get the form, if not he would have to pay the difference in tax and interest/ penalty, a heavy burden wiping out any profit made in that transaction in the first place. To avoid this situation dealers avoided interstate sale. Now the country in your market, supply to any part of the country and the tax rate is same no forms, no additional levies viz: octroi entry tax etc. Ease of doing business at the fore, so dealers have to rethink ways to do business, government has made it easy.

Manufacturer's will now have to think if C& F agencies are necessary, there is no facility for stock transfer. The good transferred to a C& F will be GST paid, this will be realised only when the material is sold and payment received, this working capital management will become key. The other advantage of a C& F was the company had to collect just one “C” form, now with no forms why pay an intermediary say 6% commission? Food for thought.

All in all, GST will be a harbinger of change in the way business is done in India for the better.