India’s Bullet Train with Japanese Aid Tramples Fiscal Transparency
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- Created on Tuesday, 26 September 2017 07:03
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(Image Courtesy: nhsrcl.in)
Japan-India bonhomie over the latter’s maiden bullet train project can spin into a can of worms, if subjected to an independent probe.
The only ‘bulletish’ aspect of the project at present is its skyrocketing cost: It has shot up about five times over 11 years from Rs 20,352 crore in 2006 to Rs.1,08,000 crore in 2017. This in spite of reduction in length of high speed rail (HSR) line from 650 km to 508 km achieved through alteration in route. On per Km basis, the cost has thus shot up about seven times from Rs 31.31 crore to 212.59 crore!
The project is thus destined to become a subject of several global case studies on six major counts.
The major issues are: 1) Fiscal Transparency; 2) tied foreign credit; 3) technology transfer & project execution through bilateralism, thereby frittering competitiveness available under global competitive bidding; 4) potential response of countries that have been edged out by Japan in bullet trains lobbying 5) alternate models for introduction of bullet trains and 6) strong potential risk of corruption.
Before discussing these concerns, take a look at Japan’s 30 years-long effort to market bullet trains to India that culminated in a foundation-stone laying of the maiden project on 14th September 2017 by PMs’ of the two nations.
Read more: India’s Bullet Train with Japanese Aid Tramples Fiscal Transparency
India should jettison its flawed tobacco taxation & comply with WHO norms
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- Created on Sunday, 05 July 2015 18:39
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(Image Courtesy: WHO)
‘From sleek packaging to exotic flavours, bidis getting makeover to lure urban smokers’. So went the headline to the news dated-lined 10th June 2015 carried by a leading Indian business daily.
Such analysis is done after the presentation of annual budget almost every year. It shows continuation of a policy that favours production and usage of low-cost bidis/beedis. It is ostensibly a pro-poor (pro-death in effect) stance of India’s tobacco products taxation policy.
While the Government hikes the excise duty on cigarettes almost every year, it shies away from doing the same in the case of bidis. Such skewed taxation is not reducing the country’s total tobacco consumption. It is merely shifting the demand from high-taxed expensive cigarettes to short-length cigarettes and to bidis.
The excise duty on hand-rolled and machine-rolled bidis has been increased only twice during the last 9 years, the last revision being done in 2012. The Government continues to exempt small producers of bidis and the ones that make unbranded bidis from excise impost.
Read more: India should jettison its flawed tobacco taxation & comply with WHO norms
Tobaccogate’s overlooked aspects also require public scrutiny
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- Created on Wednesday, 08 April 2015 16:15
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Image courtesy: MOHFW-WHO study
The Tobaccogate is much deeper and wider than the din sparked by brazen attempts by a few BJP members of Parliament to ridicule the correlation between smoking and cancer and other diseases.
Certain grave aspects of Tobaccogate that have been overlooked by the mainstream media are: 1) two identical but separate parliamentary committees have taken diametrically opposite stance on the issue of enforcement of rules framed under Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA)! 2) NDA Government’s recent decision to consider cigarette licensing applications of certain companies in a completely non-transparent fashion. 3) The lobbying for cigarette industry in general and bidi industry in particular cuts across the political spectrum.
This recently resulted in production of unanimous but one-sided report for the bidi industry by Lok Sabha Committee on Subordinate Legislation (LSCSL), whose members include MPs from the Congress, Trinamool Congress, Biju Janata Dal, Anna Dravida Munnetra Kazhagam, Rashtriya Lok Samta Party and Sikkim Democratic Front.
Before elaborating these issues, we should appreciate Modi Government for showing the political will to jettison UPA’s reluctance to promptly and fully comply with World Health Organization’s (WHO’s) Framework Convention on Tobacco Control (FCTC).
In January 2015, the Government unveiled for public comment FCTC-compliant COTPA amendment Bill. It even targets tobacco spitting in public places to prevent infectious diseases like tuberculosis and to promote Swachh Bharat and Swastha Bharat Abhiyan.
Read more: Tobaccogate’s overlooked aspects also require public scrutiny
DS group story
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- Created on Monday, 30 December 2013 16:26
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Govt checkmates DS Group’s cigarettes gambit; set to curb fag imports 
DS group, a trend-setter in the fast moving consumer goods (FMCG) sector, has a picture of chess board on its website with catchline 'winning moves across the board'. It might well now have to add 'cigarettes manufacture' as a disclaimer to its winning streak. The Group's proposal to manufacture cigarettes in Assam has been stonewalled by all the concerned ministries in the Indian Government.