Monday, November 28, 2016

My views on Demonetisation and Black Money

Democracy & Dictatorship EP 10: Demonetisation and black money


http://www.wionews.com/videos/democracy-dictatorship-ep-10-demonetisation-and-black-money-1368 via @wionews

Sunday, October 2, 2016

India's feeble claims to Digital Sovereignty

First Published on April 9, 2009 in Business Standard
http://www.business-standard.com/article/technology/india-s-feeble-claims-to-digital-sovereignty-109040200100_1.html
http://www.rediff.com/money/2009/apr/02indias-feeble-claims-to-digital-sovereignty.htm

As India moves to occupy the space of an IT superpower, the claim to digital sovereignty appears hollow given that it has a feeble presence at the high-stake tables of IT standards. IT standards have become one of the preferred tools of giants from developed economies to extract undue economic benefit from emerging economies.
Given that India does not appear to have the political resolve to enhance its presence at the global forums on international IT standards, we seem to be abdicating our responsibility to secure our IT industry as well as IT usage.
The issue becomes even more severe when we observe that globally, nations and firms, are trying to convert technologies on which they have an intellectual property rights (IPR) into standards, thus forcing their monopoly on economies and extracting an unfair and undue economic benefit from manipulation of the global IPR and standards regimes.
The declared aim of standardisation is to enhance productivity and facilitate international trade. The WTO Technical Barriers to Trade (TBT) agreement allows for simplification of trade and removes obstacle to trade; reduces need for changing design and manufacture to meet national requirements, reducing complexity and cost; and provides greater choice and understanding for customers.
Compare this to the case where the combination of IPR and standards can give undue economic benefit to large foreign players in developing countries such as India, without the monopoly players adding commensurate value to the economy.
A very good example of the devastating effect of the current IPR regime is the case of the DVD manufacturers in China who have to pay royalty charges on each DVD player manufactured that is to the tune of 33 per cent of the retail price of the DVD player, for a video format standard that is used ($20 royalty on a player of $60). China was helpless in preventing such an unfair cess being put on its domestic industry, demonstrating its lack of digital sovereignty at that point in time.
It is impossible for the majority of the citizens to buy a $400 (around Rs 20,000) PC when the per capita annual income of the citizens is around $500 (around Rs 25,000).
Therefore, if the 7.5 million PCs sold in India last year could avoid paying for the operating system, it could result in huge savings. This is possible as free software exists but the operating environment is heavily loaded against use of such software, which demonstrates India’s lack of digital sovereignty.
Similarly, other consumer goods with embedded software like DVD players, mobile phones etc., can also be made to cost less with the appropriate policy measures that India can take, only if India has digital sovereignty.
It has been observed that organisations file blanket patents on an emerging that is out of reach of developing countries. Such multiple patents are put in a manner that prevents late joiners from being able to find any niche of making any new contribution to the area without violating the patents already filed in.
None of the standards bodies such as ISO, IEC, are mandated to check if the standard adopted is truly royalty free. Thus, the global framework is being misused to indulge in anti-trust (monopolistic) practices.
This is where we start losing our digital sovereignty. It is imperative for India to ensure that it is a serious player in formulating digital standards in order to ensure security of its IT industry and to maintain its digital sovereignty.


Friday, September 2, 2016

The Future of Indian Railways 2050

Future of Indian Railways 2050

(As published in Business India, August 2016)

Indian Railways will have to transform so significantly by 2050 that not only will it be recognizable from its current operations but also most of its current assets will get replaced completely.

We need to understand the drivers that will make this transformation an imperative.

As per the UNDP Regional Human Development Report, India’s working population (people in the age group of 15 to 64 years) will be over a billion by 2050, which will be the largest workforce in the world. This workforce will be highly mobile. In addition, it is expected that over 70% of the population will be urban by 2050 and would have a higher mobility requirement. Given the load carrying capacity of various transportation options and their impact on the environment, railways would have to shoulder the bulk of this massive transportation requirements.

The second key trend driving railways is technological transformations. Mass transportation will be completely transformed in the next 30 years with technologies such as high speed rails (bullet trains), hyperloops (currently being tested in California and Russia among other places), Internet of Things, solar energy, large scale electrification of the economy and moving away from dependence on oil based technologies etc, driving this transformation.

In addition, railways will face competition from other modes of transportation such as road transportation, riverine transportation, coastal shipping and air transportation. Each of these transport systems will become much more efficient, faster and autonomic, implying that they will be managed by computers and would not require dedicated operators such as drivers, pilots etc. Hence these transportation systems will also become cheaper and in addition, will be significantly less polluting than what they are now.

 What that would imply for Indian railways is that it would have to start adopting newer systems of mass transportation, that would transport people and goods much more efficiently and at speeds that are an order of magnitude higher. Such systems would require complete overhaul of the railways as we see them today, with even the tracks requiring to be changed and perhaps even getting replaced by other locomotion enablers, as in the case of Hyperloops, which would require tubes rather than rails for locomotion. Clearly, railways too will become autonomous, requiring no train drivers, station masters,  manned crossings etc. Such a transformation would require a completely new signaling system and railways infrastructure, including automated gates at road crossings, systems that talk to the surroundings such as to incoming trains, vehicles at crossings and perhaps even airplanes, so that not only do the trains travel faster and safer, but are also able to coordinate with modes of transportation that passengers would need to use or that cargo would need to use. For example, if bulk of the passengers are going from one city to another, primarily to take a long distance flight, then the train would need to be in touch with the airplane company, to ensure that delays, If any, get factored into the dynamic rescheduling.

Indian railways in 2050, would also be a different ecosystems from the current one that is dominated by a single behemoth. Indian railways in 2050, would be corporate dominated ecosystem, with perhaps the current Railways Board transforming into a corporation. It would have all kinds of business models with private players managing their own coaches in a larger train, to running entire trains and owning the linear assets (such as railways tracks or the tubes for hyperloop), to owning railway stations. It would not be unthinkable to have airline companies expanding into railways to provide seamless travel  experience to passengers and cargo.

In addition, Indian Railways in 2050, will not be limited to the borders of India. It would connect with the economies in the east, it would connect with the economies in Central Asia and would perhaps stretch all the way to Europe, in partnership with railways in other countries.

Indian Railways will also start generating significant revenues from non-ticketing sources such as onboard retailing through digital retail, monetization of non-tangible assets, and leveraging technology. It will have a very diversified portfolio of cargo and will not be limited to bulk cargo such as coal (which anyways will have a very limited role by 2050).

Indian railways in 2050 will clearly be unrecognizably different from today’s railways, to be able to shoulder the responsibilities and challenges of the people workforce and cargo of 2050.







Sunday, July 17, 2016

Namami Gange: A Possible Water Panacea for the Northern Region States

Mission rationale and background


The Ganga river basin, for long, has been important for the country, owing to its cultural significance and the economic implications of its coverage as it supports about 43 per cent of the Indian population.[1] However, the river basin today stands heavily polluted due to the discharge of untreated industrial and domestic waste. The underutilisation of urban wastewater and the lack of efficient sewerage networks have only contributed to the problem. For instance, the CPCB estimates that the 144 drains along the main stem of the river discharge more than 6000 million litres per day (MLD) of sewage/sullage with industrial effluents. As per estimates of the MoWR, a sewage treatment capacity of about 7300 MLD is required whereas the currently, it is a mere 3300 MLD (2100 MLD created and 1200 MLD under creation).[2]





The image to the left shows Sisamau Nala, Kanpur’s largest and most-polluted open drain, discharging waste into the Ganga. The image to the right is of a polluted stretch of the Ganga, between Allahabad and Varanasi. Photo sources: www.downtoearth.org.in and www.livemint.com
Even within the existing 2100 MLD of sewage treatment capacity which is only 28% of the requirement, several plants are not utilized fully, are outdated and need to be renovated, modernized and maintained properly.  In the major cities of the north India along the river basin, situation is no different as far as sanitation woes are concerned.  For instance in Delhi, the sewerage network has lacked maintenance leading to overflow of raw sewage in open drains, due to blockage, settlements and inadequate pumping capacities. The sewage treatment capacities in key north Indian cities along the basin is thus far from being efficient both in terms of capacity and maintenance. Moreover, considering the rapid urbanization in these cities in the coming years, the capacity addition plans in progress also might not be sufficient. The following table highlights the sewage treatment capacities in the major cities along the Ganga basin in North India.


City
Sewage Generation (MLD)
Sewage Treatment Capacity (MLD)
Sewage Treatment Capacity (% of total sewage generated)
Haridwar
39.6
18
45%
New Delhi
3800
2330
61%
Kanpur
339
171.1
50%
Allahabad
208
89
43%
Varanasi
187.1
141
75%
Sewage generation and treatment capacities of major cities along the Ganga basin (2013); source: http://cpcb.nic.in/


Thus, the Namami Gange programme, for the revitalisation of the largest river basin of India, holds vital implications for the northern region. It addresses the urgent need for an Integrated Water Resource Management (IWRM) approach at river-basin level, to promote coordinated management of water resources and equitable access without compromising the sustainability of ecosystems. With sub-areas including sustainable municipal sewage management, managing of sewage from rural areas, industrial discharge and others, the flagship initiative of the Indian government has the potential of going a long way in addressing the water crises in the region.

Mission features and current status


With an outlay of INR 20,000 crores for a period of 5 years (2014-15 to 2019-20)[3], Namami Gange envisions to accomplish the mandate of the National Mission for Clean Ganga (NMCG). Implementation has been divided into entry-level activities (for immediate impact) and medium term activities, to be implemented in the direction of achieving the long-term objectives (refer to the Figure 1 for an overview of the programme).
                                                                                                                              
The funding mechanism has been reinvented, owing to the observation that investments made under past programmes (Ganga Action Plan I & II, NGRBA, Yamuna Action Plan) were far from optimal. The Union Cabinet approved the Hybrid Annuity based Public Private Partnership (PPP) model for the mission with an aim to reform India’s wastewater sector and infuse efficiency, viability and sustainability. Under the model, the government will provide 40 per cent of the project cost during the construction period and the release of funds is linked to the progress of construction. The rest of the investments will have to be raised from private sources in the form of equities and loans. The overall equity burden on private bidders would thus be less and so would the loan requirement in comparison to the other modes of PPP, making banks potentially more comfortable. The loans would be paid back by the government in instalments during the contract period, based on the performance of the private player and the asset. The model envisages the infrastructure and O&M investments, to be shared between the Centre and the States on a 70:30 basis respectively. The state governments have been further instructed to strategise resource recovery through their Urban Local Bodies (ULB’s).[4]

Keeping in view the need for scalability, a Special Purpose Vehicle (SPV) is to be established to plan, structure and procure, along with monitoring implementation of the PPP projects. The SPV would enter into MoA’s with participating State Governments and respective ULBs for taking up individual projects. Additionally, MoU’s with various ministries, such as the already-underway MoU with Ministry of Railways for purchase of treated water from STPs to facilitate faster market development for treated wastewater, are to be undertaken.[5]

Challenges and need for innovation


The mission along with sanitising the river basin, calls for efficient waste management infrastructure such as bio-digestor toilets, bathing facilities, along with sewerage treatment plants and networks. The mission has crucial economic, social and environmental implications. Thus, its mandates include livelihood generation models, health programmes and community engagement programmes for populations living along the banks.

While momentous, the initiative has its share of challenges to meet. The scale of the waste water being discharged into the basin every day requires a joint approach of river conservation and urban waste management, and likewise, substantial investments and collaborative efforts of the state governments. However, while open to private individual and organisational funding, data from the corporate affairs ministry shows private funding received for Namami Gange in 2014-15 to be the least among the government’s flagship programmes.[6] The selection of the appropriate private partners for the implementation and operation & maintenance of the projects will be a key success factor for the initiative.

The end-to-end implementation of the initiative’s projects needs to be swift and efficient considering the time frame and the progress achieved till date. The following key interventions if brought in during the implementation phase of the projects could lead to improved efficiency and effective implementation:
§  Thorough technical assessments need to be done to identify specific technological interventions required while earmarking the capital costs for each plant
§  Additionally, efficient project management calls for cost and time benchmarks, and a rigorous monitoring framework
§  Assessment of real-time operational parameters of the treatment plant and quality parameters of the treated water through usage of data analytics are imperative for the mission’s success
§  The sewage treatment plants (STP’s) must combine aspects of IT, data analytics, smart energy management, smart water treatment, grey water treatment to collect, treat and suitably redeploy treated water
§  Possibility of integrating STPs with simulation software to predict effluent quality in real time and manage quality risks throughout its lifecycle
§  New STPS should be equipped to handle both storm water along with normal sewage