Indian judiciary, one of the pillars of the Indian Constitution, was venerated, respected and believed to be conscience keeper of the Country’s constitution. Certain land mark judgments, which recognized the right of the individual over absolute Power, independence of the IV estate and Executives invasion into the freedom of the Press had been considered sacred by the Courts, even Courts looked into certain legislative actions from the strict eyes of Law and juristic covenants, precedents and templates, have bee lauded and respected. It acted as an accountable body protecting the fundamental rights, the Courts struck acts and laws transgressing the limits of the Constitution, and kept up its supremacy.
However, when the Governments at the Centre and States started tinkering with Laws, and any arbitration between Centre and states, states and States, States Vs individuals were referred to the Courts for adjudication, the Executive wantonly transferred its responsibility to Courts. When even administrative matters were not solved on the basis of Driot Administratef, Central Government and State Government Rules, but referred to Courts,. Examples of this are Ayodhya dispute, Cauveri Water dispute, etc were referred to Courts for its arbitration. There are many issues which had been referred by the President of India to the Supreme Court for its clarification, Courts naturally became highly pro active, and took upon itself, cases which normally should not have been admitted. The Public Interest litigation was easy route for anybody to approach the highest Court of the land, whether the applicant had prima facie interest and affected by a particular order or action of the government, he surpassed the usual channels of law available to him, and knocked at the Supreme Court whether he was bona fide affected or not. This PIL later became a nuisance, and Supreme Court had warned the petitioners not to file vexatious PIL without sufficient reasons.
The present judiciary is losing common man’s respect for obviously many reasons. Cases have been piled up in the lower Courts, higher Courts and Supreme Courts for ages, there are corruption charges against Judges of the higher Court, there are impeachment proceedings against some Judges, some judges involved in the PF case have brought shame to the judiciary. Criticism of one judge by another pusine judge through twitter or speeches have become common, there are parallel trails by the visual media 24x7 which prejudices the Case and one of the sad repercussions of these are loss of faith by the litigants on Courts which is supposed to dispense Fair Law. There have been past judgments which have been reversed 360 degrees by higher Courts. The recent incidents involving some of the sitting judicial officers for their Post Graduate legal examination at Andhra Pradesh were caught red handed copying by a CCTV camera is a shame on the entire judicial system. If a judicial officer who should administer fair justice indulge in incorrect procedures, who will give justice to the litigants? Can litigants have faith in such judicial officers or the judicial system?
There are also reports that appointments to the High Courts and Supreme Courts and transfer of High Court judges from one state to another are not fair. Good lawyers do not want to become Judges. Another factor in delay in delivering Justice is shortage of Judges. Even cases filed in the Fast Track Courts are unusually delayed.
There is a need for overhauling reforms in Judiciary. The left over of the colonial past including Rules, regulations, acts, laws have been a stumbling block to deliver Law in these days when speed is a necessity. Globalization has changed global laws. World has changed. There are States or nations which indulge in Wars. There are non state actors who indulge in terrorism acts or take Law into their hands. Whether these acts are out of frustration, economic backwardness or political thinking is another matter. Judges are human, they can commit mistakes. But when some of the judicial officers think that they are conferred with infinite powers, they should be told that there are checks and balances in the judicial system. There are many acts of indiscipline within the Court rooms. The Judges are accountable to the system and Rule of Law. They are also accountable to the Constitution of India. They must be mild in their observations for the litigant who has obeyed the Law and stringent in their language against law breaker. Government also should respect protocols and act impassionately. During the vote on account during the introduction of the Financial bill, CBI told the Supreme Court that enough evidence of financial irregularity against Mayawati is not there; but when to get the Nuclear Bill passed, where there was necessity to get the Left and BJP to support the Government, the CBI took a 360 degree turn and now says that evidences are there against Mayawati. This is the highest political misuse.
Judicial Reforms is the need of the hour. Like the Fourth estate, Indian judiciary needs to exert self discipline. The hallowed institution should command respect, reverence and worship! It must regain its lost legacy.
Saturday, August 28, 2010
Tuesday, August 24, 2010
We need to change our Agricultural prespectives?
Our lives are so fragile and vulnerable dependent on the monsoon winds. A deflection of even four degrees in the travel of these winds in any year can make for the draught in several States. To this day, with all the economic and technological advancements, the irony is that farmers continue to look up to the sky and pray for the winds and the rains on time; urban cities in their search for solutions for water and power shortages, are so completely dependent on the monsoon for life and living. If the farmer cannot grow food without the winds and the rains, the urban dweller does not get power at home and food at the Mall, without the rich water catchments that either generate hydel power or increase the inflow of greens and cereals into the market.
The rainfall pattern has held for many years on the same. So on what does this pattern depend upon? The Indian sub continent is the only region in the entire world which is dependent on winds that flow 24/7 from across the seas to the land and back again to the Arabian Sea and Bay of Bengal and the vast Indian Ocean that lies beneath. These northwest and southwest monsoon are as old as Time, and travel at a speed of 12/18 Kms an hour. These winds might have taken the present directions after the formation of Himalayas which must be just over 15-20 million years ago; this is nothing compared to the fact that the creation of earth goes back to over 4,000 million years.
Malabar Coast became a leading trading hub and a vibrant passage of cross cultural mergers and dialogues because the sea lanes beyond the borders led the ancients to this place because of the wind movement. Monsoon lands in Kerala in India at the first instance. The guts of wind that herald rain bends and break the Coconut trees, which are very weak or too stiff and upright, but the more flexible ones bend and extend their palm leaves to break the downpour and so many tiny waterfalls hang out from their branches.
Like the self sufficiency in food while mass hunger continues in many parts, it is another great contradiction of India that there is too much water in some areas while draught prevail in others. Distribution is the key word in both cases. Meanwhile, traditional and local water management practices, which sustain the most deprived in remote areas are ignored and damaged by modern development.
The full moon day in the thick of monsoon, is a day villagers come in herds to worship the water itself; the life sustaining element created by the harmonies of nature.
Monsoon if bountiful will push our agricultural output; if deficit, it will hit the food economy. Rainfall in 2009 was lowest since 1972, yet that fiscal accounted for a diminishing 0.2% in output. If monsoon comes, India’s agriculture will regain resilience. Output of Khariff food grains fell by 15% and oil seeds by 5%. Government released the figures that the agricultural growth accounted for 0.2% in agricultural GDP. Are the estimates correct? The Economists, who are policy advisors, have to anticipate problems and suggest solutions before problems turn to crisis. And not justify the crisis as a fall-out of international reasons. Devaluation of the Dollar has been a frenzied monster, and to offset that, the Rupee: Dollar parity should have been narrowed down, which if done, would have angered the business crowd.
Our Agricultural policy is ridiculous. Planning Commission and MoA, and the economic advisors of the PM/Finance Ministry have been fooling people. Inflation is directly related to hoarding of food grains. The solution lies in bringing down stocks to appropriate levels, and inventory should relate to food grains required for PDS. Government has no business to buy food grains more than what is required for PDS and that too at the prevalent market rates. Government policy appears to be: give farmers highest prices and give the grains at throw away prices. Traders do not keep any inventories of food grains, and what they did was paid the farmers and allowed the goods to be kept with them, and took them and sold them at savaging prices during mid inflation in food. The price raise has been caused by a plethora of problems, the government needs to accept them and the opposition need to understand them and then evolve effective policies to solve it. Instead, destructive arguments for all the wrong reasons see Parliament adjourned again and again.
Government’s only solution appears to be imports of food grains and essential oils. And to curb inflation, its only solution is minimizing Customs duties. It has also banned import of edible oils by canalizing imports and has prohibited all sorts of exports of essential edible oils. With free import of oils from abroad at nil customs duties, the market is invaded nakedly by the imported oils that it sounds death knell for indigenous edible oils. But our agricultural ministry behaves like King Canute, who asked the waves to roll back. Is the Government not acting like King Caunte by asking the monsoons to come? The economists have no other option or armory. Our agricultural minister thinks that agriculture prices are like a 20:20 match. The more the price goes up, the more will be supply. But unfortunately, the Opposite happens!
In the context of Growth Vs Inflation, it is intellectually and methodologically flawed. Economic strategy must reflect high yield, high growth with modest inflation and high employment. When prices were falling globally, Govt adopted an aggressive food procurement programme. When there were enough stocks, the right approach should have been to release that and allow market forces to act. This would have allowed demand and supply equation, and the prices would have been in sync with global prices. Government also did not undertake any global market operations. Food issue was dealt with too many ministries- Finance, Cabinet Committee on prices, NAC, PDS was not good. There is also a need to know behaviour trends like cropping pattern, emerging trends in growth in different crops, weather trends. Food prices are high, Foreign exchange reserves is not a problem, monsoon is good, food supplies are ample available. How to do, what needs to be done and that too, very fast.
We need to restructure the PDS model, as PDS has not been able to perform for the last 60 years.
In a general equilibrium model, you need to operate in both. Demand side is a larger issue, whereas spillover of food inflation into a more of generalized inflation is a core issue. If you have a strategy that is led by consumption instead of investment, then the demand side management is an issue. On the supply side, we need to take care of wastage. More than 45% of the food and vegetables are wasted.
The rainfall pattern has held for many years on the same. So on what does this pattern depend upon? The Indian sub continent is the only region in the entire world which is dependent on winds that flow 24/7 from across the seas to the land and back again to the Arabian Sea and Bay of Bengal and the vast Indian Ocean that lies beneath. These northwest and southwest monsoon are as old as Time, and travel at a speed of 12/18 Kms an hour. These winds might have taken the present directions after the formation of Himalayas which must be just over 15-20 million years ago; this is nothing compared to the fact that the creation of earth goes back to over 4,000 million years.
Malabar Coast became a leading trading hub and a vibrant passage of cross cultural mergers and dialogues because the sea lanes beyond the borders led the ancients to this place because of the wind movement. Monsoon lands in Kerala in India at the first instance. The guts of wind that herald rain bends and break the Coconut trees, which are very weak or too stiff and upright, but the more flexible ones bend and extend their palm leaves to break the downpour and so many tiny waterfalls hang out from their branches.
Like the self sufficiency in food while mass hunger continues in many parts, it is another great contradiction of India that there is too much water in some areas while draught prevail in others. Distribution is the key word in both cases. Meanwhile, traditional and local water management practices, which sustain the most deprived in remote areas are ignored and damaged by modern development.
The full moon day in the thick of monsoon, is a day villagers come in herds to worship the water itself; the life sustaining element created by the harmonies of nature.
Monsoon if bountiful will push our agricultural output; if deficit, it will hit the food economy. Rainfall in 2009 was lowest since 1972, yet that fiscal accounted for a diminishing 0.2% in output. If monsoon comes, India’s agriculture will regain resilience. Output of Khariff food grains fell by 15% and oil seeds by 5%. Government released the figures that the agricultural growth accounted for 0.2% in agricultural GDP. Are the estimates correct? The Economists, who are policy advisors, have to anticipate problems and suggest solutions before problems turn to crisis. And not justify the crisis as a fall-out of international reasons. Devaluation of the Dollar has been a frenzied monster, and to offset that, the Rupee: Dollar parity should have been narrowed down, which if done, would have angered the business crowd.
Our Agricultural policy is ridiculous. Planning Commission and MoA, and the economic advisors of the PM/Finance Ministry have been fooling people. Inflation is directly related to hoarding of food grains. The solution lies in bringing down stocks to appropriate levels, and inventory should relate to food grains required for PDS. Government has no business to buy food grains more than what is required for PDS and that too at the prevalent market rates. Government policy appears to be: give farmers highest prices and give the grains at throw away prices. Traders do not keep any inventories of food grains, and what they did was paid the farmers and allowed the goods to be kept with them, and took them and sold them at savaging prices during mid inflation in food. The price raise has been caused by a plethora of problems, the government needs to accept them and the opposition need to understand them and then evolve effective policies to solve it. Instead, destructive arguments for all the wrong reasons see Parliament adjourned again and again.
Government’s only solution appears to be imports of food grains and essential oils. And to curb inflation, its only solution is minimizing Customs duties. It has also banned import of edible oils by canalizing imports and has prohibited all sorts of exports of essential edible oils. With free import of oils from abroad at nil customs duties, the market is invaded nakedly by the imported oils that it sounds death knell for indigenous edible oils. But our agricultural ministry behaves like King Canute, who asked the waves to roll back. Is the Government not acting like King Caunte by asking the monsoons to come? The economists have no other option or armory. Our agricultural minister thinks that agriculture prices are like a 20:20 match. The more the price goes up, the more will be supply. But unfortunately, the Opposite happens!
In the context of Growth Vs Inflation, it is intellectually and methodologically flawed. Economic strategy must reflect high yield, high growth with modest inflation and high employment. When prices were falling globally, Govt adopted an aggressive food procurement programme. When there were enough stocks, the right approach should have been to release that and allow market forces to act. This would have allowed demand and supply equation, and the prices would have been in sync with global prices. Government also did not undertake any global market operations. Food issue was dealt with too many ministries- Finance, Cabinet Committee on prices, NAC, PDS was not good. There is also a need to know behaviour trends like cropping pattern, emerging trends in growth in different crops, weather trends. Food prices are high, Foreign exchange reserves is not a problem, monsoon is good, food supplies are ample available. How to do, what needs to be done and that too, very fast.
We need to restructure the PDS model, as PDS has not been able to perform for the last 60 years.
In a general equilibrium model, you need to operate in both. Demand side is a larger issue, whereas spillover of food inflation into a more of generalized inflation is a core issue. If you have a strategy that is led by consumption instead of investment, then the demand side management is an issue. On the supply side, we need to take care of wastage. More than 45% of the food and vegetables are wasted.
Amend the century old Land Acquisition Act!
In deference to the near unanimity amongst the political parties against forcible land acquisitions, the Centre is proposing to bring out a bill which was being considered by the Group of Ministers headed by Agriculture Minister Mr Sharad Pawar. The interest of farmers would be protected through a comprehensive legislation. There were many conversion of agricultural lands for being converted to SEZ. Governments were buying land from farmers at throw away prices and passing them on to the authorities for development, industrialization etc depending upon a Law enacted in 1894.
The Supreme Court in a case filed by an individual whose lands were acquired for public purpose by the State Government by invoking the Special Land Acqusition Act held that when fixing the compensation, the present market value plus the future potential value, the purpose for which the land was acquired and proposed to be used must be taken into account when arriving at the just compensation.
The Court held that today’s market value of the property but the value with reference to the better use to which it is reasonably capable of being put in the immediate or near future. The potentiality of the acquired land, in so far as it relates to the use to which it is reasonably capable of being put, must be given due consideration.
The location of the land that was being acquired, the futuristic developments that are in the pipe line, and the increase in the marketability of the property has to be assessed to arrive at a fair compensation value by prudent examination of the existing, potential and notional increase in value.
The State Government, Central Government, Public bodies acquire land for different purposes citing public purpose as the indent for their acquiring the land. If it is an agricultural land, the body vested with the power, provides NoC to convert the existing agricultural land into general land which can be used even for commercial purposes. The lands have been taken over to build dams, hydro electric power stations, setting up factories, building colleges, setting establishments of Central government, or state government including defence, public sector undertakings, setting up parks, recreation centres, for development of houses under various Schemes, etc. In India, we do not have a Rehabilitation and Resettlement Plan/Act by which displaced persons are given dwelling places on the same scale or model in which they lived prior to the acquisition. A settlement is disturbed, the persons are given dwelling places in four or five different areas, splitting them according to land availability, where there will be no infrastructure and facilities similar to the one enjoyed by the displaced.
In Karwar, when the naval establishment (for Defence purposes) proposed to acquire about 20,000 hectres of land along the sea coast, I did a costing taking into the calculation, the notional value of returns from coconut trees, jack fruits, and areca trees, the notional loss due to the tract of sea front lost for fishermen to fish, and consequent to the setting up of the naval base, an area will be declared as No entry Zone, which will restrict the movement of the traditional fishermen. In North Canara, the land was scarce, hence alternate land was difficult to be obtained. All this, should be factored in the Compensation. The Govt of India was kind enough to accept some of the arguments, and a proposal namely, Greater Karwar Development Authority was suggested. But in the absence of a uniform Rehabilitation policy, along with a Resettlement Act, it would not be possible for the evictees to get instant justice, but the case will drag on. The Government’s late thinking of bringing a law to curb poaching agricultural land and/or acquiring the agricultural land and permitting legal conversion, will go a long way to restrict frequent misue of the public purpose take-over of land. The Supreme Court’s direction has not come a day soon, as it will open up discussion on arriving at a just formula which could be arrived at for uniform implementation on a case to case basis depending upon parameters.
Especially when Right to property has been removed from the fundamental right even though the people who enacted the Constitution where part of the Constituent Assembly on the basis of land holding. The 116 year old Act needs overhaul. Government should Act now. Right now.
The Supreme Court in a case filed by an individual whose lands were acquired for public purpose by the State Government by invoking the Special Land Acqusition Act held that when fixing the compensation, the present market value plus the future potential value, the purpose for which the land was acquired and proposed to be used must be taken into account when arriving at the just compensation.
The Court held that today’s market value of the property but the value with reference to the better use to which it is reasonably capable of being put in the immediate or near future. The potentiality of the acquired land, in so far as it relates to the use to which it is reasonably capable of being put, must be given due consideration.
The location of the land that was being acquired, the futuristic developments that are in the pipe line, and the increase in the marketability of the property has to be assessed to arrive at a fair compensation value by prudent examination of the existing, potential and notional increase in value.
The State Government, Central Government, Public bodies acquire land for different purposes citing public purpose as the indent for their acquiring the land. If it is an agricultural land, the body vested with the power, provides NoC to convert the existing agricultural land into general land which can be used even for commercial purposes. The lands have been taken over to build dams, hydro electric power stations, setting up factories, building colleges, setting establishments of Central government, or state government including defence, public sector undertakings, setting up parks, recreation centres, for development of houses under various Schemes, etc. In India, we do not have a Rehabilitation and Resettlement Plan/Act by which displaced persons are given dwelling places on the same scale or model in which they lived prior to the acquisition. A settlement is disturbed, the persons are given dwelling places in four or five different areas, splitting them according to land availability, where there will be no infrastructure and facilities similar to the one enjoyed by the displaced.
In Karwar, when the naval establishment (for Defence purposes) proposed to acquire about 20,000 hectres of land along the sea coast, I did a costing taking into the calculation, the notional value of returns from coconut trees, jack fruits, and areca trees, the notional loss due to the tract of sea front lost for fishermen to fish, and consequent to the setting up of the naval base, an area will be declared as No entry Zone, which will restrict the movement of the traditional fishermen. In North Canara, the land was scarce, hence alternate land was difficult to be obtained. All this, should be factored in the Compensation. The Govt of India was kind enough to accept some of the arguments, and a proposal namely, Greater Karwar Development Authority was suggested. But in the absence of a uniform Rehabilitation policy, along with a Resettlement Act, it would not be possible for the evictees to get instant justice, but the case will drag on. The Government’s late thinking of bringing a law to curb poaching agricultural land and/or acquiring the agricultural land and permitting legal conversion, will go a long way to restrict frequent misue of the public purpose take-over of land. The Supreme Court’s direction has not come a day soon, as it will open up discussion on arriving at a just formula which could be arrived at for uniform implementation on a case to case basis depending upon parameters.
Especially when Right to property has been removed from the fundamental right even though the people who enacted the Constitution where part of the Constituent Assembly on the basis of land holding. The 116 year old Act needs overhaul. Government should Act now. Right now.
Foreign Trade Policy- Survival of the fittest?
Government has been cautious not to get overjoyed over 32% export growth in the first quarter of 2010-11 and maintained the equilibrium in retaining most of the stimulus and concessions offered to the export based industry through FTP to enable it to stand on its feet. DEPB has been extended up to 30-6-2012, continuation of interest subvention for handicraft, handloom, MSME sectors and inclusion of leather, textiles, Jute sectors as well in the interest subvention Pre-shipment, Post shipment Scheme, retention of Status Holder incentive, thrust on South-South trade through Special Market Focus Product Scheme, introducing annual EPCG authorization scheme to reduce filing of multiple EPCG authorization, etc , it is hoped, would provide impetus to export growth.
Duty Drawback will be seperately announced within a fortnight by Department of Revenue. There is a tremedous amount of hope and hype, that the DDB rates may get bigger to enable the export industry to sail through the rough weather of diminishing orders.
Coconut industry which has been included in Vishesh KrishiGram Udyog Yojana, Spl Focus product schemes, Focus Market Scheme, Market Focus Product Scheme, 3% EPCG Scheme, Duty drawback and Duty Entitlement Pass Book Scheme, was able to effect an export of Rs 180 Cr growth during the first quarter of 2010-11 against Rs 80 Cr in the first quarter of last year, which is a significant improvement. The Commerce Ministry added minor Coconut products for inclusion like Oil Cake, Coconut shell unworked under VKGUY and Coconut hookah under Special Focus product Scheme during a slight revision exercise it undertook on 12-1-2010.
In the amended edition for 2011-12, Packaged Coconut Water, Coconut shell worked, oil cakes have been brought under VKGUY eligible for a duty scrip benefit of 5%. Virgin Coconut Oil is expected to be included when the Government take a decision regarding making Free, the prohibitive clause in export of food products and oil products, as domestic availability and inflation has been blocking its release for exports.
It has been largely due to our pressure that Palm Oil which has been enjoying nil Customs duty is likely to be brought fewer than 20% Customs duty slab for Crude and 27.5% for Refined Palm Oil. The impact of Customs duty will steady the Coconut oil market domestically. The ruling price of palm oil is Rs 4,400/- per quintal while Palm kernal oil is rs 5,600/- per quintal. Coconut Oil is avilable at Rs 5,850/- per quintal while one quintal of Copra is quoted at Rs 3,950/-. With the customs duty tagged on, Coconut Oil will seize price advantage, and would be able to stabilize its growth over a period of nine to one year, if the conditions stay as it is.
Activated Carbon (under 3802) which constitute 50% of Coconut exports, has not been included in any of the Schemes for benefit.However, chemicals and allied sectors, rubber has been considered weaklings and provided arm comfort through inclusion in the 'bonus’ to the export schemes. While handicrafts(Barmer), textiles(Bhiwandi),leather(Agra) have been included in App-7 of the HBP,Vol I, Pollachi which has a growing export town for 'Coir and coconut' products fetching around Rs 450 cr exports was not considered for TEE tag. By allowing Natural rubber to be imported into India at 7.5% import Customs duty against 20%, feeble support is given to Rubber products by bringing them under VKGUY, is not going to augument Rubber-4 price favourably. Kerala's other sectors, unfortunately only status quo has been provided . CSEZ has turned out a commendable export performance of over Rs 15,000 Cr, yet nothing has been granted special to CSEZ. Inspite of Government promoting Latin America as an emerging economy, trade between India and Latin America continues to be sober. Is it 'trade lag'?
Marine products have been given some concessions and extra considerations. But largely, sagging Kerala based export sectors have been left high and dry to nag without solace and/or comfort.
Commerce Ministry is hopeful of attaining a target of US $ 200 billion this year. Hopefully, yes.
Duty Drawback will be seperately announced within a fortnight by Department of Revenue. There is a tremedous amount of hope and hype, that the DDB rates may get bigger to enable the export industry to sail through the rough weather of diminishing orders.
Coconut industry which has been included in Vishesh KrishiGram Udyog Yojana, Spl Focus product schemes, Focus Market Scheme, Market Focus Product Scheme, 3% EPCG Scheme, Duty drawback and Duty Entitlement Pass Book Scheme, was able to effect an export of Rs 180 Cr growth during the first quarter of 2010-11 against Rs 80 Cr in the first quarter of last year, which is a significant improvement. The Commerce Ministry added minor Coconut products for inclusion like Oil Cake, Coconut shell unworked under VKGUY and Coconut hookah under Special Focus product Scheme during a slight revision exercise it undertook on 12-1-2010.
In the amended edition for 2011-12, Packaged Coconut Water, Coconut shell worked, oil cakes have been brought under VKGUY eligible for a duty scrip benefit of 5%. Virgin Coconut Oil is expected to be included when the Government take a decision regarding making Free, the prohibitive clause in export of food products and oil products, as domestic availability and inflation has been blocking its release for exports.
It has been largely due to our pressure that Palm Oil which has been enjoying nil Customs duty is likely to be brought fewer than 20% Customs duty slab for Crude and 27.5% for Refined Palm Oil. The impact of Customs duty will steady the Coconut oil market domestically. The ruling price of palm oil is Rs 4,400/- per quintal while Palm kernal oil is rs 5,600/- per quintal. Coconut Oil is avilable at Rs 5,850/- per quintal while one quintal of Copra is quoted at Rs 3,950/-. With the customs duty tagged on, Coconut Oil will seize price advantage, and would be able to stabilize its growth over a period of nine to one year, if the conditions stay as it is.
Activated Carbon (under 3802) which constitute 50% of Coconut exports, has not been included in any of the Schemes for benefit.However, chemicals and allied sectors, rubber has been considered weaklings and provided arm comfort through inclusion in the 'bonus’ to the export schemes. While handicrafts(Barmer), textiles(Bhiwandi),leather(Agra) have been included in App-7 of the HBP,Vol I, Pollachi which has a growing export town for 'Coir and coconut' products fetching around Rs 450 cr exports was not considered for TEE tag. By allowing Natural rubber to be imported into India at 7.5% import Customs duty against 20%, feeble support is given to Rubber products by bringing them under VKGUY, is not going to augument Rubber-4 price favourably. Kerala's other sectors, unfortunately only status quo has been provided . CSEZ has turned out a commendable export performance of over Rs 15,000 Cr, yet nothing has been granted special to CSEZ. Inspite of Government promoting Latin America as an emerging economy, trade between India and Latin America continues to be sober. Is it 'trade lag'?
Marine products have been given some concessions and extra considerations. But largely, sagging Kerala based export sectors have been left high and dry to nag without solace and/or comfort.
Commerce Ministry is hopeful of attaining a target of US $ 200 billion this year. Hopefully, yes.
Rise in Executive Salaries?
The salaries of CEOs have skyrocketed over the past 20 years, rising at a faster pace than average wages, managerial pay, or corporate earnings. This is mainly due to compensation benchmarking. A standard practice in many industries, benchmarking occurs when compensation committees use peer executives at rival firms to establish a “fair” market wage. The problem is that each year, some CEOs leapfrog others by raking in huge bonuses or raises that are unrelated to their company’s performance, often thanks to poor corporate governance or oversight. These inflated salaries are then used by other companies to set their compensation levels; over time, the snowball effect makes CEOs’ salaries swell dramatically.
The compensation survey conducted by Standard & Poor’s (1992 to 2006) revealed that there were haphazard sharp increases in CEO salaries. When the pay of Chief Executives were compared with the compensation received by the salaried Directors on different Boards. An attempt at examination as to how CEO pay was determined by analyzing consultant and compensation committee records. Leapfrogging accounted for about half of the overall increase in CEO salaries in that time period, according to the survey. The mean CEO salary plus bonus, adjusted for inflation, grew by 58 percent from 1993 to 2005, and the mean total compensation, which included stock and stock options, increased by 116 percent. Meanwhile, mean annual compensation in India overall rose by only 20 percent.
As per SIBI Guidelines, there is a mandate that the firms shall disclose the salaries drawn by the top-CEOs, how much bonus, percentage of profit was paid to them, what were their perks. Also salaries, commissions drawn by paid Directors also need to be disclosed. Some firms give Stock options to the Staff, wherein a good chunk in blue chip companies land in favour of the top executives like CEO, Mg Director, Dy Mg Director, Working Director etc. One CEO of a firm based in Chennai draws Rs 42 Cr as compensation per annum. His wife, who is the Dy MD, is also drawing an equivalent sum. There are many CEOs in India who draw an average salary and compensation of Rs 1 Cr and above.
The salaries of CEOs fixed during the last twenty years or so, based on standard surveys conducted by international reputed Analysts are that competition benchmarking is the bottomline for fixing the salaries of their own CEOs. Otherwise, there will be migration or desertion. But the comparison of salaries of competitions is often inflated, which artificially drive up competition.
The same benchmarking with the 6th pay commission recommendations to the bureaucrats has necessitated an enlargement in the salary and allowances of members of Parliament. However, Cabinet on the basis of the recommendation by parliamentary affairs ministry proposed to increase the salary from Rs 16,000 to Rs 50,000 against Rs 80,000 as recommended by the Parliamentary panel. Today, a Secretary to Government gets a pay of Rs 80,000 per month after the revision of their salaries after introduction of 6th Pay Commission. In addition an MP gets a daily allowance of Rs 2,000 per day, constituency allowance of Rs 45,000 and office expense of Rs 45,000 per month. The car allowance has been increased to Rs 4 lakh. Spouses are also eligible for free travel by flight. The increase is from retrospective effect (arrears from May 2009). In addition each MP is provided with Rs 2 Cr which can be spent by him for special works in his constituency. These are times when inflation is in the two digits, there is widespread disquiet because of non availability of jobs, or basic income, huge defence outlay because of fearsome neighbours, terrorist masterminds who want to see the country destroyed, agriculture and industry’s growth is slow paced. Our egalitarian society which promises every citizen the fundamental right to freedom of work, when there are none opportunities should glaringly reflect in the eyes of our people who have been capitulated to Parliament to work towards the welfare of the nation.
The free economy regime will see demand for more and more wealth, and creation of more wealth will lead to more spending resulted in runaway inflation.
The compensation survey conducted by Standard & Poor’s (1992 to 2006) revealed that there were haphazard sharp increases in CEO salaries. When the pay of Chief Executives were compared with the compensation received by the salaried Directors on different Boards. An attempt at examination as to how CEO pay was determined by analyzing consultant and compensation committee records. Leapfrogging accounted for about half of the overall increase in CEO salaries in that time period, according to the survey. The mean CEO salary plus bonus, adjusted for inflation, grew by 58 percent from 1993 to 2005, and the mean total compensation, which included stock and stock options, increased by 116 percent. Meanwhile, mean annual compensation in India overall rose by only 20 percent.
As per SIBI Guidelines, there is a mandate that the firms shall disclose the salaries drawn by the top-CEOs, how much bonus, percentage of profit was paid to them, what were their perks. Also salaries, commissions drawn by paid Directors also need to be disclosed. Some firms give Stock options to the Staff, wherein a good chunk in blue chip companies land in favour of the top executives like CEO, Mg Director, Dy Mg Director, Working Director etc. One CEO of a firm based in Chennai draws Rs 42 Cr as compensation per annum. His wife, who is the Dy MD, is also drawing an equivalent sum. There are many CEOs in India who draw an average salary and compensation of Rs 1 Cr and above.
The salaries of CEOs fixed during the last twenty years or so, based on standard surveys conducted by international reputed Analysts are that competition benchmarking is the bottomline for fixing the salaries of their own CEOs. Otherwise, there will be migration or desertion. But the comparison of salaries of competitions is often inflated, which artificially drive up competition.
The same benchmarking with the 6th pay commission recommendations to the bureaucrats has necessitated an enlargement in the salary and allowances of members of Parliament. However, Cabinet on the basis of the recommendation by parliamentary affairs ministry proposed to increase the salary from Rs 16,000 to Rs 50,000 against Rs 80,000 as recommended by the Parliamentary panel. Today, a Secretary to Government gets a pay of Rs 80,000 per month after the revision of their salaries after introduction of 6th Pay Commission. In addition an MP gets a daily allowance of Rs 2,000 per day, constituency allowance of Rs 45,000 and office expense of Rs 45,000 per month. The car allowance has been increased to Rs 4 lakh. Spouses are also eligible for free travel by flight. The increase is from retrospective effect (arrears from May 2009). In addition each MP is provided with Rs 2 Cr which can be spent by him for special works in his constituency. These are times when inflation is in the two digits, there is widespread disquiet because of non availability of jobs, or basic income, huge defence outlay because of fearsome neighbours, terrorist masterminds who want to see the country destroyed, agriculture and industry’s growth is slow paced. Our egalitarian society which promises every citizen the fundamental right to freedom of work, when there are none opportunities should glaringly reflect in the eyes of our people who have been capitulated to Parliament to work towards the welfare of the nation.
The free economy regime will see demand for more and more wealth, and creation of more wealth will lead to more spending resulted in runaway inflation.
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