Socio Research & Reform Foundation

For most cities in India, 24×7 water supply remains a dream. Karnataka Urban Infrastructure Development & Finance Corporation has successfully experimented with such a water supply scheme in Hubli-Dharwad, Gulbarga & Belgaum. Now the corporation is further experimenting involving a private water distributor in Mysore targeting to reach out to more than 1.74 lakh persons. Major features of the experiment include:

1. Project awarded to a private agency with expertise in water sector.
2. One of the principles was that efficient water service coupled with an effective system of collection would ensure willingness among people to pay.
3. Even when there is sufficient water in the system compared to demand however large scale leakage of water means low pressure. For example, in Mysore while water pumped is 185 million litres per day (MLD) and with demand of 120 MLD, there should be 65 MLD surplus in the system. This would be sufficient to maintain pressure in the system.
4. Obviously one of the key features of the scheme is to stop leakage in distribution system.
5. BPL in Dharwad were charged a fixed amount of Rs 48/- per month. Considering many of the poor where even women are daily wage workers, this amount was willingly as they did not have to wait to loose there wages waiting for storage of water.

Note
The above post was sent with incorrect heading (Reforming Public Distribution System) earlier, hence being re-posted.
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Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

India is likely to achieve a much improved agriculture production in most cereals compared to last year as per an announcement by Agriculture Minister. Although bumper record for rice and overall food grain production is still retained for the year 2008-09.

Note:  Highlighted figure indicate the record till FY 2009-10.

However the major bottleneck of foodgrain storage capacity, as highlighted last year by a PIL filed in Supreme Court, still continues. Present storage capacity is 42 MT. FCI had targeted to create additional storage capacity for 16 MT, however so far it has been able to firm up plans for 2.5 MT of storage only. Thus the spectre of wastage of large amount of foodgrain continues.

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Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

In an innovation to collect data directly and immediately from the schools on status of the Mid-day meal schemes for each of the state’s 1.5 lakh schools, UP has come out with an innovative monitoring system. On a daily basis a phone call is rec’d on the mobile of the teacher responsible for the mid-day meal, he is asked to punch in the number of students served with the meal, if the teacher punches zero (in case no mid-day meal was served), the teacher is asked to punch any of the 4 numbers (1) if the cook was not available, (2) if the raw-material was not available for cooking, (3) transportation problem (where food is being cooked elsewhere using cluster approach, and (4) any other reason.

Phone call is being made using a software through voice-mail and responses are immediately recorded and displayed on the UP Mid-day Meal Authority web-site, using a ‘cloud telephony’ technology. This provides the authority to opportunity to intervene immediately, if no meals are being served at a particular school. Earlier the Authority could intervene at the earliest only after a few weeks when the Gram Pradhan’s report is received by the Authority.

The experiment of the UP Govt. has been commended by the central Govt. and several states have elicited interest in the replication, as it provides immediate data to the authorities who wish to take immediate corrective action. However the problem of Gram Pradhan and teacher colluding still continues and the UP authority is looking how to overcome such situations.

________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

For most cities in India, 24×7 water supplies remains a dream. Karnataka Urban Infrastructure Development & Finance Corporation has successfully experimented with such a water supply scheme in Hubli-Dharwad, Gulbarga & Belgaum. Now the corporation is further experimenting involving a private water distributor in Mysore targeting to reach out to more than 1.74 lakh persons. Major features of the experiment include:

1. Project awarded to a private agency with expertise in water sector.
2. One of the principles was that efficient water service coupled with an effective system of collection would ensure willingness among people to pay.
3. Even when there is sufficient water in the system compared to demand however large scale leakage of water means low pressure. For example, in Mysore while water pumped is 185 million litres per day (MLD) and with demand of 120 MLD, there should be 65 MLD surplus in the system. This would be sufficient to maintain pressure in the system.
4. Obviously one of the key features of the scheme is to stop leakage in distribution system.
5. BPL in Dharwad were charged a fixed amount of Rs 48/- per month. Considering many of the poor where even women are daily wage workers, this amount was willingly paid as they did not have to wait to loose there wages waiting for storage of water.

____________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

Is the NREGS, GoI’s major flagship programme, likely to result in another colossal wastage? Data available with the Govt, indicates that total number of works undertaken under the scheme number to 6.8 million (m) as on date. However out of this not even 50% of the works have been completed till date. During the current year only 0.32 m works (4.6%) of the works undertaken have been completed till December. Even cumulatively more than 50% of the works undertaken are lying unfinished.

Considering most of the works are in the nature of small works, not requiring any skilled manpower, it has stirred the Govt. into action. The Govt. has issued directives to the state govts. to ensure that time-frame for completion is set out at the time of sanction. Govt. has also asked to set-up a local monitoring and vigilance committee. GoI has spent Rs.75,000 crores over last 5 years on the scheme. Is the Govt. heading towards a colossal wastage like most of its well-intentioned schemes?

________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

NREGS has entered into 6th year. The scheme can only boast of partial success, as it is, like all government schemes, been marred with diversion of funds, false claims, and other malpractices.

Presently a debate is on, on how to make it more effective. While Prime Minister has talked of using technology (bio-metrics, UIDAI cards, etc.) to improve the delivery mechanisms, Sonia Gandhi has emphasized the importance of strengthening Social Audit mechanism.

In this regard Nitish Kumar, Bihar CM has come out strongly in favor of cash-transfers direct to the bank accounts of the beneficiaries. With success of his bicycle-scheme for the girls, his words carry some weight. Even Delhi CM, Shiela Dikshit has spoken in favor of cash-transfers.

________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

One of the criticisms of the GDP oriented growth has been that it creates disparity as the growth benefits mainly the rich. In this regard Gujarat has launched a programme to connect over 10 lakh rural jobs to industrial projects in next 3 to 5 years.

Gujarat govt. has started Gujarat Livelihood Promotion Council (GLPC) as a nodal agency to bring bank finance to several thousand SHGs in rural and semi-rural business hubs. It is planned that corporates would provide training to these SHGs, who will produce goods which ultimately be procured by these companies itself. Idea being that the companies will train the workers to suit their buying requirements. Several big names (ITC, Tata Motors, Godrej, and Reliance) have signed MOUs with GLPC. Future Group (Food Bazaar) has also decided to make Gujarat the hub of its backward integration and procurement.

What is unique about the experiment (compared to China, where growth was driven by a large number of factories in the rural areas) that the focus is self-employment through SHGs and not jobs.

Let us wait and see how the experiment pans out in future. If successful could become a major harbinger of creating opportunities in the rural areas.

________________________________

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

 

SOCIAL SECTOR

– Plan to spend Rs 1.6 lakh crore on social projects, up 17 percent
– 11th plan expenditure up 100% in nominal terms
– India Microfinance Equity Fund of Rs 100 crores to support small MFIs
– NABARD to be given funds for cooperatives financing handloom sector
– To provide Rs 5,000 cr to SIDBI to meet priority lending targets
– To allocate Rs 100 cr to SIDBI for women
– NREGI wage rates indexed to CPI
– Aanganwadi workers honorarium increased to Rs 3000 from Rs 1500. Helpers salary also doubled up from 750 to 1500.
– Close to finalising food security bill this year
– Education allocation increased to Rs 52,057 cr, increase of 24 percent
– Old age pension age-limit to go down from 65 to 60, for people above 80 Rs 200 to Rs 500/-.
– Banks to cover 20,000 villages for opening accounts in FY12
– Rs 500 crore more for national skill development fund
– To distribute 1 million UID cards per day shortly

AGRICULTURE SECTOR

– Agriculture sector has shown significant rebound Growth 5.4%
– Allocation for farm development raised to Rs 7,860 cr
– 3% (increased from 2%) Interest subvention to farmers who pay loans in time
– Cold storage projects classified as infrastructure sector
– Rs 300 cr provided to promote pulses cultivation in rain-fed areas, another Rs 300 cr to promote farm product cultivation
– Farm credit flow raised to Rs 4.75 lakh crore
– To classify capex of fertiliser sector into infrastructure

INDUSTRIAL & FINANCIAL SECTOR

– Industrial Growth 8.1%
– Exports up 9.4%
– Economy to grow at 9 percent, plus or minus 0.25 percent in 2012
– To permit SEBI registered mutual funds to access foreign funds directly
– FIIs allowed to invest in Mutual Funds; unlisted bonds with minimum lock in period of 3 yrs
– To provide Rs 2000 crore for warehousing facilities (to benefit TCI) and an (equal amount for manufacturing facilities
– Interest subvention limit raised to housing upto Rs 25 lakh from Rs 20 lakhs
– FIIs allowed to invest in 5-year unlisted bonds
– To allow Rs 30K crore tax free bonds for railways, NHAI
– Special incentives for hybrid vehicle makers if manufacturing done in India

FISCAL

– Fiscal deficit down at 5.1% from 5.4%. Revenue deficit for FY11 seen at 3.4%. Fiscal deficit seen at 4.1% in FY 13, 3.5% in FY 14
– Current account deficit poses concerns
– Gross Tax Receipts at Rs 9.32 lakh crore, up 25%
– Growth rate of services sector expected at 9.3%
– Total expenditure estimates up 13.4%
– Exports have grown at 29.4%
– India expected to grow at 9 pct in FY 12
– States to cut down fiscal deficit to 3 percent of Gross State GDP by 2014
– Govt to keep up tempo of disinvestment process
– Retain divestment target of Rs 40,000 crore for FY12
– Govt committed to retain 51 percent stake in PSUs
– New series of coins with new rupee symbol to be introduced

REFORMS

– To introduce public debt management bill next fiscal
– DTC to be effective April 1, 2012
– Direct cash transfer for kerosene, fertiliser & LPG subsidy by April 2012
– Govt. considering Malegam report
– Plan to introduce Companies Bill in current session
– Self-assessment in customs for exporters & importers
– Have set up dedicated cell on transfer policy monitoring
– Special Component plans to be specifically earmarked in the budget
– Allocation to Department of Justice increased 3 fold to Rs 3000 cr
– GST Bill to be introduced in parliament this year
– New bank licence guidelines this year

TAXATION

– Tax limit raised from Rs 1,60,000 to Rs 1,80,000. Special sops for Snr citizen.
– A new scheme to be introduced for refund of service tax on lines of drawback of duties
– New category of very senior citizens for those above 80 years introduced, exemption limit Rs 5 lakh. Senior citizens exempt up to Rs 2.5 lakh
– Sugam – new tax return for small businesses
– MAT rate hiked to 18.5% from 18%. Special Economic Zones to come under MAT
– Reduce surcharge of 7.5 percent for domestic companies to 5 percent
– Tax sops of Rs 20,000 on Infra Bonds extended for one year
– Service tax retained at 10%.
– Central excise duty rate unchanged at 10%
– Service tax on hotel accommodation above Rs 1500 per day
– AC restaurants serving liquor under service tax net
– AC hospitals with more than 25 beds under service tax
– Legal representation for businesses under service tax
– Domestic travel to pay Rs 50 service tax, Rs 250 on international travel
– Service Tax to add another 4000 cr revenue gains
– Service tax net extended to include health check-ups
– Low withholding tax of 5% for notified infra funds
– To impose mandatory levy of 10 pct on branded garments
– Base rate on excise duty raised to 5% from 4%
– Direct Tax proposals net loss estimated at Rs 11,500 crore
– Foreign unit dividend tax rate cut to 15% for Indian companies
– Surcharge on domestic companies reduced to 5 % from 7.5%
– No new tax exemption limits for women
– MAT rate hiked from 18% to 18.5%
– Relaxation in e-filing norms for small tax payers

The above highlights are based on Budget speech and may need to be amended after reading the fine print in the Finance Bills.

_______________________________________
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in