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Need for reform in election system.

Posted by 123mohan on August 9th, 2009
Map of India

Map of India

After taking charge as a law minister Mr. Verrappa Moily has declared that he will give preference to the election reform. Detail information regarding numbers of votes casted in favour of candidates in recently held election of 15th  loksabha has now been known to every body.
Taking review of data, it is observed that statement of Mr.Moily is an important matter. In Bihar, in Nowada parliamentary constituency, Mr. Bhola Singh declared elected as he got the 1,30,608 votes in his favour which is less than 10 % of total 14 lacs voters in constituency, still he has been declared elected. As he got the more number of votes among the 21 candidates contested in election. There are such 145 representative/MP who could  secured less than 20% of total votes.
In short they are representing the constituency of people in which majority of people have not casted votes in their favour. From 1977, there is reduction/decrease in numbers of votes secured by winning candidates. In addition to that percentage of votes caste is also decreasing, due to which proportion of  candidates getting opinion of majority is declining. If such situation is continued, then time will come when representative getting minority of opinion will rule the country. Hence it is important to give preference to verify, why peoples are becoming so indifferent about election. For this it is necessary to think about how to increase participation of voters in election and what machinery and system will have to adapt so as to enable the candidates to get majority opinion of voters.
Defects in present system:- We have accepted west minister system of Britain for election. Accordingly candidates who gets maximum votes is declared elected. This is also known as first past the post system. When in election only two candidate contest the election, winning candidates gets more than 50% votes then at that time this system works well.
But in India, there are many parties. Election contest is multicoloured. In that case even if candidate getting maximum number of votes is declared elected, still it is not sure that he would get more than 50%votes. In short candidate denied by majority of opinion (More than 50%) can be get elected. Then how can he be called peoples representative? Because of this in many European countries, where there are more than two parties, there the system of “first past the post system is not adapted. There, the proportionate representation or presidential system is adapted.
On this back ground India should also reconsider about “First past the post” system of election not only due to numbers of political party but also due to social and economical composition of voters constituency.
In our most of the voters constituency, the election is contested on the basis of religion, caste and language. If there is a 30 % population of particular caste of voters in one voter constituency, then candidate of that particular caste can get easily elected. Due to which political parties is also giving tickets to that candidate who belong to that particular caste. In this way other voters in that constituency are neglected. In our election, rowdyism, wealth power plays important role. Because of this there is a increase in proportion of inclusion of criminal minded people in politics. To prevent this tendency, our election should be more representative oriented, giving more preference to the good nature and good character people. Our ex president Mr.Krishnakanth had suggested for giving permission to the run off system of negative votes. Law commission had also recommended such type of system. Political party should think sincerely over it. In present election system, candidates who secure maximum votes but 20% or less than 20% of total voters, is declared elected. In run off system, re election is held between first two candidates who secure maximum votes and in re election, candidates getting more votes is declared elected. In election system of giving permission to negative votes for one time, negative votes are deducted from the positive votes secured by candidates.
Suppose in one of the voter constituency of 15 lac voters, candidates name A,B,C,D, these four candidates has secured 4lac, 3.6lac, 3.5lac, & 3.5lac votes respectively and A candidates being criminal minded, secure 100000,   10000, 8000, and 9000 negative votes respectively. These negative votes if deducted from their total votes secured by the candidates then four candidate will receive 3lac, 3.5lac, & 3.42 lac, and 3.41lac respectively. Then re election will be held between B & C candidates. In that election candidates getting more votes will declared elected. In this run of system, where one time negative vote is allowed, has some benefit. First is in specific constituency system of giving preference to specific candidates of specific caste will end.  Because in our country, proportion of voter constituency compromising more than 50% of specific caste is very rare. Due to which other voters can expressed their displeasure by casting their negative votes in case, candidates of specific caste is given preference in the constituency compromising majority voters of specific caste but less than 50%. In addition to that, candidate will make an effort to get support from all constituents of society, due to which caste ism and religious dispute in society will be restraint/ checked in some proportion.
Second benefit is due to negative votes, political party will play more moral role and will start denying tickets to the criminal back ground candidate. In this way, criminal mind can be kept away from election.
Because of this also, violence during election period will also be reduced. and election will be conducted peacefully. Due to this system voters can tell effectively which candidates they don’t need. Due to this political party will also take review of voters mind before allotting tickets to the candidate.
Reelection Provision:- If no candidate has secured majority of votes, then there is a provision of conducting reelection between first two candidates in this system even if there is a possibilities of creation of botheration of conducting re election, but due to electronic voting machine, conducting an reelection will be easier. Immediate after result in few days or within a week, reelection can be conducted.  System of conducting reelection in case of hijacking of election booth illegally, is prevalent in our system. Country like Iran has also adapted this run off  system in recently held election of president in Iran. and demonstration are being held in Iran for taking re election due to improper occurrence during election.
Run off system & negative voting system are two different concepts. If system of negatives is not preferred then election can be conducted with run off method. But if these two methods are combined to gather, and if implemented then it will have more effectiveness and one can observe more effect.  All improper occurrence and immoral behavior, evil path during election, can be avoided/ stop. Hence it is necessary for giving thought to it. in this regard, there should be an unanimous of opinion of all the political parties.
If election are conducted on the basis of this system in our country, then our democracy will be in more proportionate, representing the people, more energetic and strong.  Only after that democracy will remain away from wealth power, criminal elements, and politics of votes.

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How is new pension plan?

Posted by 123mohan on June 13th, 2009

This year labour day Ist may 2009, has become memorable day. On this day, central government has announced/started a pension plan for all Indian citizens. Pension is usually seen as a monthly salary to the retired person of state or central government. This is only known to public. Non government servant, unorganised labour, remained deprived from pension scheme. Countries like India do not know the benefit which people from developed countries are getting after retirement under the social securities schemes.
Peoples in their old age are looking towards their children for the support for spending their remaining life after retirement from private service. But now this can be changed now. Peoples can live their remaining life in old age after retirement happily with the help of this pension scheme, if during their service period, if they save some portion of their income.
This pension will help him to become economic independent during his old age and will help him to spend, live his remaining life honorably.
Under this scheme, all Indians in age group of 18 to 55 years, can open their pension account in the bank. That means this scheme is open for all public.
Pension account can be opened with minimum amount of Rs. 500/- but every year, it is binding on the account holder to deposit minimum amount of Rs. 6000/- during year.
Account holder has given complete freedom of decision for how much amount to be deposited in how much installments. But Rs. 6000/- should be deposited in 4 or more installment in a year. Every year how much is to be deposited, is to be decided by account holder. But it is essential to deposit Rs.6000/- every year. Arrangement for opening the pension account has been made in 17 banks & in five financial institution. This arrangement has been made at 285 places throughout India. Example in Maharashtra at following places, account can be opened.
1)Kotak Mahindra bank at Nagpur, Pune, Aurangabad, Nasik, Thane.
2) State bank of India:- Amaraoti, Nagpur, Pune, Sangali, Thane, Mumbai,
3) State bank of Hyderabad:- Aurangabad, Nagpur, Nanded, Pune, Mumbai.
4) ICICI Bank:- Nagpur,Pune,
5) CAMS:- Pune, Mumbai
6) Reliance Capital:- Pune, Mumbai, Thane
7) L.I.C. of India:- Mumbai, Pune.
8) Axis Bank- Nagpur, Pune, Mumbai.
9) IL&FS security & services,:- Mumbai, & Pune.
Arrangement has been made for opening an account in above mentioned banks and in special accounts of company. Information regarding this has been made available on website www.PFRDA.org.in
Six managers of pension fund have been appointed to look after  the investments of amounts deposited in this pension funds of banks. Account holders has been given option of deciding fund managers to whom amount deposited, should be given for investments. After opening an pension account, account holder will get an retirement account number card(PRAN) along with that he will get telephone & Internet password, due to which it will be convenient for the employee doing service, business to deposit their amount in their account from any place in India.  Just as freedom is given to account holders for selection of pension fund managers as mentioned above, same way freedom of choice is given to account holders regarding amount deposited, to be invested in following three types of investment. Option 1) Stock market/share market 2) Company’s loan bond and  cumulative deposits. 3) Government loan bond.
Full amount can be deposited in above mentioned 2& 3 options. But in option no 1 that is share market maximum 50 % of amount can be invested. Pension fund managers as selected by account holders, will make an arrangement for fund investments. Those account holders who do no want to do investment as mentioned above, their investment of fund will be made by life cycle fund. Investment of life cycle fund will be made as per PFRDA rule. Interest at fixed rate will not been given on the amount deposited in pension fund account but profit or loss which will get on investments as mentioned above will be distributed equally to all account holders every year. On completing the age of 60 years of account holders, full amount or 40% of accumulated amount can be invested in life insurance company and can avail the benefit of pension every month. Remaining amount maximum 60% can be withdrawn in next 10 years in divided manner or at one stroke. Similarly due to unavoidable circumstances if need arises, that is before completion of 60 years, maximum 20% of accumulated amount can be withdrawn.
After reading this information, one will observe that this pension plan is an Ideal plan for for living independent economical life in old age and arrangement for one’s old age period. This plan is entirely different amongst various available different pension plan in market.
This pension plan has some special peculiarities such as freedom of fixing deposit amount, comparatively less expenditure and arrangement for investments  by business oriented fund managers.
Again it feels that this pension plan will help the account holders to preserve his welfare under full control of development authority and pension fund regulatory. Again it feels that this pension plan will help the account holders to preserve his welfare under the full control. At present there is an arrangement for opening of this account at limited places in India. But in future, it is expected to increase and will spread all over India at all the places.
In present plan, Account holders has to pay Rs. 350 as an administrative charges but in future with spread of this pension plan, there is an possibilities of reduction in administrative charges. At present amount deposited in pension fund is exempted from income tax. But amounr withdrawn from the fund and interest on amount is still taxable. But in future, if this plan is made fully income tax free. then it will get an good response from the people.
In short, person who do not get a pension after retirement and person who want to become economically independant in his old age, then he should take the benefit of plan.

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Development of basic infrastructure is a challenge before new government

Posted by 123mohan on June 4th, 2009

There is a need of good amenities in basic infra structure for development of country. Today in many areas, there is a impact of recession and less demand. but in this basic infrastructure sector, there is not a impact of recession at all.
Because of difference of demand & supply, basic infrastructure is such sector, where miss opportunities never go waste, in future it is always there.
UPA government under the leadership of Manmohan singh has again came in power at central. Hence there will be great challenge for development of basic infra structure before government. In recent years, country,s economic growth rate declined. Economies growth rate and amenities in basic infrastructure are related with each other. There is a need of investment in basic infrastructure if economic growth rate need to be raised. Now let us see in detail about power, roads, ports, civilian amenities and railways in basic infrastructure sector.

Power:- Proportion of stock of coal depot with china & India are near about same. During one year 2007, china has increased its capacity of power to 1 lakh megawatts, where as India took 50 years to install this capacty. Kirit Parekh committee deputed to laid down the policies in power sector, in coming years stated that if India needs to keep its growth rate up to 8% continuously then up to 2031-2032, It will require 8 lac megawatt power. that means that, for next 20 years, we need to install power project of 40000 megawatt every year. There will be need of Rs. 1.20 lac crore finance. From that we can have idea of vast opportunities in power sector. Government has taken some steps in some proportion in this direction. Govt has planned to install power project of 78700 megawatt in 11th five years plan.  To meet this aim, government has planned of installing ultra mega power project of  4000 megawatt at Krishna patnam at sasan, 4000 megawatt at tilayya, 4000 megawatt at Mundra. Process of calling tenders have already been completed and contract for first three project has already been given to reliance power, Mundra Tata power project. Government has also fixed up dead line for completion of process of calling tenders and allotment of contract up to end of year 2009 for following project.

Town/state                 Project capacity/ megawatt    Expenditure in Rs.

Gulbarga/Karnataka             1320                                 5000/-
Cheyur / Tamil Nadu         4000                                  16 to 18000/-
Belbahal / Orissa                4000                                 16 to 18000/-
Akkaltara/ Chatisgarha     4000                                  16 to 18000/-
Belgaon / Karnatak            1300                                   5000/-

Kalptaru  power, lanco infra tec, reliance power, Tata power,  NTPC and many other are coming forward to obtain contract. While installing new project for power, there is a need of necessary machinarys and equipment e.g. turbines & Transformers. For this public undertaking firms such as Bharat heavy electrical, are increasing their 50% more capacity of production up to December 2009. and up to year 2011, they are doubling the production capacity.
Similarly in this sector, other company such as Bharat forge, Alstom projact, L& T are also coming forward.  For this machinary & equipment, Reliance energy has planned to install project in coordination with Chinese firm in joint sector.(partnership)

Roads:- It is said that good roads means highway of development. Transport in country is increasing every year by 9%. In that proportion, roads are not developing. There was a planning of developing 50000 kilometer of express highways, When project for developing national highways was started in 1999. But up till now only work of roads 1000 kilometer in length have been completed.  planed  work of completion of golden four lines roads of 5846 kilometer in length was required to be completed up to December 2003, but from that also up till now road of 126 kilometer in length are remained to be completed.
Similarly it was expected to be completed , east west and north south joint roads, project of 7300 km in length in December 2007, But yet road of 3357 km in length is remained to be completed.
Reason behind this is late result of court cases, deficiencies in coordination between various government departments and delay in acquiring the land. But Government is taking steps to overcome the declining growth rate. As per permission given by joint government private project committee tenders for developing 2096 kilometer in length road are expected in near future. Similarly state of Gujarat, Andra pradesh, Karnataka, Haryana, have decided to develop the road of 22 thousand kilometer in length. Similarly the government has also decided to convert the national highways of 6500 kilometer in length in six lanes.
Companies such as GMR Infra, Hindustan construction, Reliance infra, Shapurgi palani, are taking part in it.
Ports:- Accommodating capacity of various ports including Mumbai have already been exhausted and now capacity of Nahava port is on way of exhaustion. Today there is decrease in global Business due to global economic recession. Transaction in our ports have also been reduced by 15 to 20 %. But this position/ situation will not exit once there is momentum to the economic speed. Today there is a need of modern ports in the country. With that view work is in progress. In Gujarat, it has been decided to convert pipawow ports in to modern ports. Since this port is away at a travel distance of 8 hours, due to which sea transport coming towards the Nhasheva port can be diverted towards pipawaw ports. Similarly in Gujarat, modern port is being developed at Adani Samuha Mundra. For that Mundra port & special economic zone company have been created. There are special terminals for transaction of coal & chemicals.
For export of Maruti Suzuki cars, Special auto births is being developed for bringing crude oil by Indian oil corporation. Government has planned to build great energy project at the port.
It has received a good response. Because fuel required for the project can be suitably brought through sea transport. Contract for installation for great enegy project near two ports, has also been given. Contract to Tata power is given near Mundra ports & contract to reliance power is given near Krisnapatnam.

Civic Basic Infrastructure:- Peoples are coming from villages to the city to avail opportunities of employment created due to economic progress of the country. This leads to increase in size of city and in population of cities. Because of this there is a great strain on civil basic amenities in city such as water supply, transport roads, and drainage system. and time has now come for collapse of basic amenities in the cities.
Government has started Jawaharlal Neharu national urban development plan in 2005, for making improvement in basic amenities of the cities. Under that plan work of Rs. 47,934 crore is being undertaken in various cities.
In Nagpur & Chennai, work of water supply has been allotted to private contractor who charge the bill to the corporation and in turn corporation recovers the bill from the citizens.
Today there is a need of good public transport for fast developing cities. In Delhi, efforts has been made to solve this problem by Delhi Metros.
Today, Delhi Metro rail corporation is working as a adviser for Metro project in nine cities. But there is a need of financially strong local corporation for implementation of Metro rail project. Similarly viability gaping fund, for formation of joint sharing private & government project if made available immediately, then Metro rail project in various cities can be implemented.

Railway:- There is a need of widely spread up net work of railway, if the wheel of economic progress needs to be run fast. Goods, transported by railway is always cheaper than the goods, transported by road transport. and it is also environment supplement. These are two main benefit from railway transport. Since last few years, Indian railway is in profit. Government has given emphasis on spreading of Railway net work In next few years, works costing Rs. 160,000 will be implemented. Government has established dedicated freight corridor corporation for creation of special railway net work for goods transport.
Special Railway line for the goods transport from Delhi to Mumbai is being laid down by this corporation. This will complete in next five to six years. For that funds from world bank and Japanese investors has been taken. Companies & manufacturing firms will have great opportunities of creation of ware houses & Store depot near this Railway track, for transport of goods, once work of laid down of railway line would be completed.
Government has also decided to establish logistic park near the Railway line and investment of 20 thousand crore is expected on that.
Companies like Gateway distry park, Gati, Allcargo logistic transport corporation of india will have great apportunities for trading in this field.
If we consider these things, then we will have an idea of vast available apportunities. Now there is a need of availing/ taking advantage of these apportunities by private & government sector, which will lead to the progress of country.

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Economic reforms will get stimuli, expectation from new government.

Posted by 123mohan on May 28th, 2009

Capital market, industry sector are hopeful. As it has been decided that or fix that new UPA government will be formed  at the central under the leadership of congress party, because of which capital market and industries are expecting quick reforms in basic infrastructure, in power sector, and already late in disinvestment process, should get momentum. Market is also keeping eye on how finance minister manege to raise fund to fill up deficiency of 10% in reference to total production growth and expenditure, while presenting a budget in July 2009. Stability & social reform process has got a green signal due to rejection of leftist party by voters. Because of this, persons related to share market have expressed that share market will open with long jump on Monday.
Share market which was closed on Friday on 12000, have a reflection of stable government at the central. There are signs that on 18th of may while opening the market, it will get momentum. Dr.Anand Sathe, Director of Kalyani capital said regarding expectation of market from new government that leftist party which were preventing/obstructing the process of economic reform, while Manmohan singh was the prime minister, now that process of reforms will get momentum. Disinvestment programmed will gather momentum and funds can be raised. While doing so, sick units can be modified by selling of equity of sick units and govt can raised good amount of funds from sale of equity of blue chips. There will be increased in employment opportunities  if share market remain on expectation level, then process of disinvestment of blue chips will get good response.

In coming five years, there will be need  for power energy on large scale due to which there is urgent need for improvement in power sector. Considering the affidavit submitted by central government to the supreme court regarding participatory notes, there is a need of fixing definite policy regarding participatory notes, which may be either for bringing money into share market through media of participatory notes or putting restrictions on it.
Famous Chartered accountant Mr. Milind Sangoram  said that there is no need of making any changes in income tax slab rate & rates. But instead they should give emphasis on how it should be made more broader. FBT should be completely deleted or there is a need of making it more convenient & easy. General income tax payer have to bear repentance due to origin of income tax deduction rule. There should be uniformity and easiness in laving of taxes. Mr. Govind Patwardhan a member of advisor committee of vat of government of Maharashtra has stated regarding indirect taxes that government had given promise regarding implementation of system of general service tax & goods taxes from April 2010.

Now good opportunity has come for keeping that promise. Rate of service tax should be kept as it is due to recession but when needs arises, it should be reduced if possible.

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Destruction of chemical weapons by India.

Posted by 123mohan on May 27th, 2009
Map of India

Map of India

All chemicla weapons which were in possession, were destroyed by India. Time limit for destruction to all countries were given up to April 2012. India has given information to the united nations organisation that they  have  destroyed  all the chemical weapons in possession. India has become third countries in the world, after South Korea and Albania who have destroyed the chemical weapons in possession as per international agreement.
India has obeyed international agreement by sending the letter on dated 26th march 2009 to the organization for prohibition of chemical weapons of united nations organization, informing them regarding destruction of chemical weapons in possession. Under the observer of united nation organization, this action has been taken, as informed by organization for prohibition of chemical weapons.
India had not declared that it had chemical weapons for last so many years. In June 1997, it had declared 1044 tons of sulphur mustard in possession. Only 2% of total stock of sulphur mustard had been used in manufacture of chemical weapons as stated by India. Declaration were made by India only after law came into force regarding chemical weapons. According to the information given by CBWB magazine, in first phase in 1999, India had destroyed 1% of chemical weapons. In second phase in April 2002, 20% of chemical weapons were destroyed by India.
In the end of Nov 2003, 45% and in January 2008, more than 75% chemical weapons were destroyed in march 2009. America destroyed  58% 0f weapons. !65 countries have signed the agreement regarding chemical weapons. Up to April end Iraq, Libia, Russia, and America have declared stock of chemical weapons in their possession, more than 28 thousand tonnes of chemical weapons are with Russia, 30 thousand tons of chemical weapons are in possession of America. Up till now Russia and America have destroyed 30% & 58% of chemical weapons respectively out of total stock lying with them.
It is obligatory for all the countries to destroy the stock of chemical weapons up to 2012 as per agreement.

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