gfiles magazine

December 10, 2015


Thinking out of the box
 
The fourth gfiles Governance Awards feted officers and administrators from across the country for their achievements in the field of governance. These were the people whose work touched the lives of millions and impacted them positively
 
by Narendra Kaushik
 
Union Railways Minister Suresh Prabhu says governance is like ‘intel’ (informal for intelligence), not so visible yet most important for any government, department and organisation. Prabhu would know. He is in the Cabinet of Prime Minister Narendra Modi who defines good governance as “putting people at the centre of development process” and never tires of stressing pro-people and pro-active governance. Besides, the minister has a mandate to make Indian Railways an engine of the Indian growth story through good governance.
 
The Union Minister for Mines and Steel, Narendra Singh Tomar, credits the coal auction, which helped the Modi government rustle up Rs. 4 lakh crore, for establishment of a transparent system. He also attributes the large number of disbursals under MUDRA (Micro Units Development and Refinance Agency Bank) to good governance by bankers and bureaucrats.

Gfiles Governance Awards - Dr Anil Kakodkar, Nuclear scientist


For distinguished service in the field of nuclear science, with massive contribution for the advancement of the science and India’s nuclear energy programme
 
Born on November 11, 1943, in Barwani village of Madhya Pradesh, Dr Anil Kakodkar joined the Bhabha Atomic Research Centre (BARC) in 1964 and became its Director in 1996. He was the Chairman, Atomic Energy Commission, and Secretary to the Government of India, Department of Atomic Energy, during 2000-09. He was DAE Homi Bhabha Chair Professor at BARC during 2010-15.
 
In BARC’s reactor engineering division he played a key role in design and construction of the Dhruva reactor, an original high-tech project. He was in the core team of architects of India’s peaceful nuclear tests in 1974 and 1998. He also led the indigenous development of India’s pressurised heavy water reactor technology and rehabilitated two reactors at Kalpakkam and the first unit at Rawatbhata.
 
Dr Kakodkar led the pursuit of utilising thorium as a fuel for nuclear energy and development of national capability in all aspects of atomic energy for which he built competent teams of specialised scientists and engineers. Currently, he engages in designing the advanced heavy water reactor, which uses thorium-uranium 233 as the primary energy source with plutonium as the driver fuel. The unique reactor system, with simplified but safe technology, will generate two-thirds of electricity from thorium. His efforts have made India a country with advanced nuclear technology. 

Gfiles Governance Awards - Ajay Singhal IRRS


For successfully overseeing the initiative on spec-trum monitoring and licence administration, ensuring violation-free usage of satellite spectrum in India
 
An officer of the Indian Radio Regulatory Service, Ajay Singhal has been cred­ited with successfully overseeing the mission to provide an effective mechanism for monitoring the spectrum allocated to various service providers of satellite-based ser­vices provided by the WPC wing of the Ministry of Communication and IT, Government of India. Spectrum is a limited natural resource of the country with every citizen having a right to its legal and optimum utilisation. While spectrum allocation to service providers is governed through li­cences issued under the Indian Telegraphy Act, 1885 and Indian Wireless Telegraphy Act, 1933, its effective administration depends on resolving major problems, such as lack of effective mechanism to prevent unauthorised usage of satellite spectrum, non-availability of technical infra­structure for checking allocation to various service providers, lack of operational abil­ity to continuously monitor and verify spectrum services and non-availability of software database for monitoring outcomes. 
 

Gfiles Governance Awards - Dr Shalini Rajneesh IAS


For outstanding contribution towards women’s empowerment and developing measures to improve public administration efficiency
Dr Shalini Rajneesh is a women’s topper and youngest member of the 1989 batch of the IAS. As Principal Secretary, Department of Personnel and Administrative Reforms, Government of Karnataka, she was instrumental in implementing Karnataka’s Guarantee of Services to the Citizens Act, 2011, popularly known as SAKALA. The Act ensures time-bound delivery to citizens of 478 services covering 47 departments. In just two years, since April 2012, 60 million citizens successfully availed of time-bound services that earned SAKALA the Prime Minister’s Award, Google Innovation Award, National e-Governance Award for Outstanding Performance in Citizen Centric Service Delivery, QCI-DL Shah Quality National Award and CAPAM Award.
During her stint as Deputy Commissioner, Belgaum district, the first historic legislative session was held outside the state capital. Her contribution through a book on inclusive growth for upliftment of the backward regions of Karnataka bore fruit in the form of an amendment to the Constitution vide Article 371 J, giving special status to the Hyderabad-Karnataka region. As Secretary, Panchayati Raj, she saw Karnataka win the 2nd Best Panchayati Raj National Award. She also served as Secretary, Women and Child Development, and her contributions earned nationwide appreciation and recognition. In 2013, Karnataka State Women’s university made her a ‘Doctor of Literature’.

Gfiles Governance Awards - Dr S Vijayakumar IAS


For successful contributions towards empowering persons with disabilities through participative inclusion in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MnreGS)
 
Dr S Vijayakumar, an IAS officer of the 1993 batch of the Tamil Nadu cadre, has a distinguished record with enviable acumen in public administration. He is known for proficiency in giving shape and structure to government schemes and policies such that they are optimised in accomplishment of their objectives. As the Commissioner, Rural Development and Panchayati Raj, Dr Vijayakumar was instrumental in conceptualising and initiating efforts to include Persons with Disabilities (PwDs) under the MNREGS. While the MNREGS guidelines indicated providing equal and suitable opportunity for employment of PwDs, its implementation suffered due to factors such as lack of clarity, barriers in attitude, availability of suitable work and services, and so on. 

Gfiles Governance Awards - RS Nayak Engineer

For outstanding contributions in developing and improving civic amenities, serving to provide an exemplary model on sustainable ground water utilisation for the nation as a whole
In 1995, Belgaum city in Karnataka was faced with severe scarcity of water, with delayed rainfall, and with its main reservoir, the Rakaskop, running dry, the city had to find alternative sources of water and quickly. As Belgaum raced against time to solve the emergent crisis, RS Nayak, city engineer, took the lead and initiated the Open Wells project. The Open Wells programme was literally an invigoration of the city’s history, taking cognisance of how the landscape used to be dotted with open wells prior to the advent of piped water supply. The ingenious project, under the able stewardship of Nayak, took the form of a participative local initiative with long-term orientation.
His initiative and persuasiveness in involving the local community, social organisations like Rotary Clubs, Lions Clubs, NGOs, private entrepreneurs and donors rejuvenated several high-yielding open wells which supplied potable water to around one-third of the city’s population.  The project was not only successful in that it helped Belgaum tide over the crisis, it also served to augment existing infrastructure. The National Institute of Hydrology has certified the sustainability of these wells for at least the next 50 years. An effective low-cost programme, the key ingredients of the Open Wells project was promoting and harnessing neighbourhood innovation and tapping into local resources.

http://www.gfilesindia.com/frmArticleDetails.aspx?id=1354&Name=gfiles%20governance%20awards 

Gfiles Governance Awards-Anshul Mishra IAS

For setting up an effective, innovative, multi-mode grievance redressal mechanism and cracking down on illegal mining, saving the state losses worth several thousand crore rupees
A Tamil Nadu-cadre IAS officer of the 2004 batch, Anshul Mishra is a postgraduate in Political Science from JNU. He ensured fairness and transparency in administration by establishing an Information Centre/Complaint Cell at the Collectorate as Collector of Madurai in 2012. The online complaint registration system ensured speedy and qualitative disposal of grievances, enabling people to track the status and also reduced repeat grievances considerably.
He also set up a Facebook page— ‘Collector Madurai’—an innovative idea for redressing grievances and publicising the government’s welfare schemes through the social network. It soon became popular and people started posting common civic issues that affect the common man. The system proved so effective that it could dispose of around 80 per cent of the issues raised in a qualitative manner during his tenure, that ended in 2013. The impact he had could be gauged from the fact that the social media tagged the day he was transferred from the district as ‘Black Friday’.
http://www.gfilesindia.com/frmArticleDetails.aspx?id=1356&Name=gfiles%20governance%20awards 

Gfiles Governance Awards - PK Deshmukh IAS


For contributing towards agricultural development and e-governance for crop pest surveillance
An Indian Administrative Service (IAS) officer of the 1995 batch of the Maharashtra cadre, PK Deshmukh has served the government in various capacities. He has been involved in a number of successful government initiatives for rural development and improvement of agricultural productivity. As CEO of the Zilla Parishad, Kohlapur, Maharashtra, he was credited with implementation of the Rajashri

Shahu Sarvangin Shikshan Karyakram programme for quality improvement in primary education, and the Ideal Village programme in Lodhavade village, Satara district. It earned him the Prime Minister’s Award for Excellence in Public Administration on Civil Services Day on April 21, 2008. He was instrumental in the successful implementation of the Maharashtra Crop Pest Surveillance and Advisory Project, and also played a role in the CROPSAP Programme, a multi-stakeholder ICT-based initiative launched to synergise central and state institutes working in the field of agriculture and horticulture research, setting the platform for online real-time advisories to farmers for productivity improvement and crop protection. The project, covering more than 100 lakh hectares, also earned him the Prime Minister’s Award for Excellence in Public Administration. He was responsible for the implementation of the innovative scheme of ‘Close user Group’ with BSNL, covering more than 7.5 lakh farmers.

Gfiles Governance Awards - Rakesh Kumar Gupta IAS


For implementing path-breaking reforms in the UPSC examinations by IT-enabling of the entire examination process and implementing reforms in the Civil Services examinations
A 1986-batch IAS officer of the Jammu & Kashmir cadre, Rakesh Kumar Gupta has had a distinguished career. He served as Chief Vigilance Officer, National Consumer Cooperative Corporation (Government of J&K) and Principal Secretary to the Governor (Government of J&K), among other positions. As CEO and J&K State Election Commissioner, he handled the challenging job of conducting elections in the state in a peaceful manner and computerised the electoral rolls in urdu, using unicode software.
As Commissioner of Science and Information Technology, Government of J&K, he formulated the IT policy for the state. He was instrumental in setting up Community Information Centres in backward areas to increase information technology penetration in rural areas and bridge the digital divide in J&K. As Special Secretary, Social Welfare, Gupta is credited with setting up the council for rehabilitation of victims of militancy. As Power Secretary, he initiated power sector reforms, drafted the regulatory Commission Act and gave a big boost to non-conventional energy sources.

Gfiles Governance Awards - Meeran Chadha Borwankar IPS


For playing an instrumental role in tackling the Mumbai underworld and unearthing some of the most infamous scandals in the history of Maharashtra Police
A 1981-batch IPS officer, Meeran Chadha Borwankar is the second woman IPS officer of Maharashtra, the first woman IPS officer to lead the Mumbai Crime Branch, the first woman Superintendent of Police (Aurangabad and Satara districts) and Commissioner of Police (Pune) in Maharashtra. Born in Gurdaspur, Punjab, she did her postgraduation from DAV College, Jalandhar. Later, she also studied Policy Analysis in Law Enforcement at the University of Minnesota, USA.
Known as a woman super-cop, Borwankar has played a huge role in the extradition of Abu Salem, Monica Bedi, Tariq Parveen and Sharmila Sitaram Naik alias Sharmila Shanbhag. She was awarded the President’s Medal for distinguished service in 2006, apart from the police medal in 1997 and the Director General’s insignia for meritorious service in 1996 and a Hubert Humphrey Fellowship (2001-2).

Civil services: pay, perk and performance?

 Due to the collective failure of civil servants in living up to the covenant of the Constitution, India’s democracy has diminished, giving place to kleptocracy

Ten years ago, when the Sixth Pay Commission gave a hefty hike in pay and perks to civil servants, it also entered a caveat on performance by adopting the maritime ‘mantra’‘shape up or ship out’—to send a clear message. The Fifth Pay Commission had also attempted something similar. Both have failed and now, when civil servants are revelling in the pay and perk bonanza of the Seventh Pay Commission, the question of performance again comes to the forefront.
An important Term of Reference (ToR) of the Seventh Pay Commission was: “To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to the complex challenges of modern administration and the rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.” 
http://www.gfilesindia.com/frmArticleDetails.aspx?id=1339&Name=GOVERNANCE 

The strategy of silence

 
In politics, consummate players have to know when to speak and when to be silent. Manmohan Singh lost his gaddi because he maintained a studied silence at all times, hoping that the storms would spend their fury and vanish into the horizon of comparative calm. Since Rahul Gandhi found his tongue after the extended sabbatical of introspection, he has decided to be loud, uproarious, brash and vulgar, hoping that the pitch and timbre of his vocal fury would move some of his listeners to side with him.
 
Narendra Modi is a flawless player. He let the entire Lalit Modi affair fade away into the drainage system of the proverbially short memory of the public. He did not speak a word. His loyal fans see a deeper strategy behind the master’s silence. The Opposition criticism reduced the carefully crafted image of those partymen who could pose a political challenge in the future, and Modi let the Opposition perform this odious task for him.
 
It is, however, not equally evident why he lets the fringe of the Hindutva crowd get away with comments that diminish the stature of the NDA government without even a mild admonition or rebuke.
 

After the Bihar storm








Post the Bihar election results, new political formations are on the anvil. And it is the anti-BJPism that will drive these formations as the Congress has certainly ceded political space to its prime rival
 
Bihar has once again changed the paradigm: in 1917, Champaran set the tone for the freedom struggle; in 1974, the JP movement heralded the end of Congress hegemony at the Centre; in 2015, the fiercely contested Assembly poll has set a new course for contemporary political discourse with anti-BJPism as the focal point.
 
Stock markets have a concept of course correction; overvalued   blue chip stocks sometimes come crashing to ultimately recover and reach their optimal levels. The Bihar outcome should be seen as an opportunity for course correction by the BJP under Narendra Modi. The euphoria of the 2014 triumph has somewhat evaporated. Modi had created hope and thereby generated respect. Eighteen months later, the promise of achhe din is providing grist for mockery. The Modi government has made a difference, but that difference is overshadowed by incessant political sabre-rattling by the ruling party and a resultant sniping by the opposition. Rising prices, inter alia, have made the government’s achievements opaque. 
 
 

Social upsurge


The results of the Bihar elections signal tough times ahead as the ‘haves’ feel threatened by the rise in political power of the ‘have-nots’
 
The outcome of the fiercely contested Bihar assembly polls has given a new direction to Indian politics to open avenues for mobilisation of the huge majority of the deprived. It may help in a quick rise of those always on the margins. Yet, it can be a dangerous weapon in the hands of unseasoned and immature minds determined to reap quicker political benefits. The misadventure of populism with a new instrument for a quickera rise in power games can be a dangerous development. The long list of recognised and unrecognised parties with the Election Commission speaks of the mushrooming growth of shops by individuals with intent to grab a seat of influence, whichever way. Such individuals are not averse to resorting to nefarious ways, including blackmail and compromises, to derive their pound of flesh from the needy.
 
The urban middle class has reacted sharply to the Bihar results for they had perceived a new saviour in Narendra Modi. His defeat by the “caste-ridden” politics is not only a disappointment for them, but also a cause for acute resentment. Their extreme dislike is reflected in issues like resentment over use of cow hide to make shoes. They do not perceive the unity of the deprived class as a healthy political development. It causes resentment as the upper castes have lost power levers to the OBCs once again. The class that was always confined to the lower rungs of society for centuries will now certainly call the shots. The development may not remain confined to only one state; it may follow other states, they fear.
 

Land of ‘The Jungle Book’
 
The Pench Tiger Reserve and its neighbourhood is the original setting of Rudyard Kipling’s most famous work, The Jungle Book. The terrain of the park is undulating with mainly gentle slopes criss-crossed by seasonal streams and nullahs. The Pench river, flowing through the centre of the Reserve, is dry by April but a number of water pools, locally known as ‘dohs’, are found, which serve as waterholes for wild animals.
 
Its close proximity to Nagpur, just 90 km on NH7, gives it an advantage in terms of logistics and services. The wildlife population, especially that of the tiger, has grown encouragingly.
 
The undulating topography supports a mosaic of vegetation ranging from moist, sheltered valleys to open, dry deciduous forest. Over 1,200 species of plants have been recorded from the area including several rare and endangered plants as well as plants of ethno-botanical importance. It is dominated by fairly open canopy, mixed forests with considerable shrub cover and open grassy patches. 
 

Consolidate in the lull



 
Post the September quarter earnings, the market may remain bearish in the short to medium term due to stretched valuations with earnings not likely to pick up soon and further downgrades by analysts for FY 2016 and 2017. Also, the Fed rate hike is not going to be a one-off affair; rather, there may be a series of hikes. The world markets, especially the emerging markets, are likely to be on tenterhooks. Despite improved macro-economic fundamentals, India may still not be completely immune due to the impact the Fed hike may have on the outflows of FPI money. The global recovery too is taking longer than expected, resulting in Indian exports falling by 17.3 per cent y-o-y in October, the  11th successive month of contraction.
 
Most analysts feel that the dollar rally has just begun and that the rupee may weaken further. A weak rupee will not only push up inflation but can also result in financial trouble for companies that have un-hedged dollar loans as the rupee cost of their debt will mount. The dollar debt of Indian companies has grown rapidly and is estimated at $125 billion now. Though global oil prices are generally seen to have a negative correlation with the dollar, it is yet to be seen whether the trend holds this time too. All this can have a serious impact on the financial stability of the economy. The banking system continues to be under considerable stress, which is affecting both the earnings momentum for the market and investment activity in general. 
 

RSS’ Vaidya sitting smug


prachar pramukh old modi foe
 


RSS chief Mohan Bhagwat has pitched for a review of the reservation policy, contending that it has been used for political ends. He suggests setting up of an apolitical committee to examine who needs the facility and for how long. This was first carried by RSS mouthpiece Panchjanya, which routinely publishes news related to its parent organisation. Items are noticed by the public only if they are controversial. This piece of news, when it appeared, did not evoke a reaction from the RSS’ top office-bearers. But when the All India Prachar Pramukh, Manmohan Vaidya, reacted and spoke to the media about it, the fun began. This happened just before the Bihar elections. Vaidya, a full-time pracharak, knew the impact his speaking to the media would have. Why, then, did he do it? Before moving to Nagpur, Vaidya was the Gujarat Prant Pracharak when Narendra Modi was Chief Minister and they were at loggerheads. Since the RSS is the parent of the BJP, Vaidya had an edge. Besides, he was friends with another strong party leader, Sanjay Joshi, who also did not get along with Modi. So, in effect, Vaidya’s gesture had a fallout in Bihar. The RSS leadership worked to a certain end in Bihar while the top leadership of the Bihar BJP worked in a lacklustre way. Hard feelings die hard. g
 

BJP snatched defeat from jaws of victory!


bihar cm candidate hukum deo blocked
 
What would have been the result of the Bihar elections if the BJP had declared its chief ministerial candidate? Observers are convinced the scenario would have been entirely different. It is not that the BJP did not have worthy leaders in its fold, the announcement was not made just due to lack of political will. Insiders reveal that, in the midst of the elections, the BJP top brass suddenly decided to announce its chief ministerial candidate. They say two lakh posters were printed, bearing photos of Amit Shah, Modi and the chief ministerial candidate. When the bales of posters were about to be taken from the printing press for pasting on walls, the order came to hold them back. The chief ministerial candidate was Hukum Deo Narain Yadav, a Backward leader and MP from Madhubani. It would have been a master stroke. It would have shifted the Yadav votes to the BJP as Hukum Deo’s image is clean and he is known as an outspoken and hardworking leader. So who blocked the move and why? It’s still a mystery but insiders reveal signs of the emergence of another leader within the BJP. g
 

Minister Shivpal cut to size

pwd deprived of Rs.20,000 cr
 
As this story illustrates, the UP administration is run by many centres of power, never mind if the de jure boss is CM Akhilesh Yadav. Shivpal Singh Yadav, brother of Mulayam Singh Yadav, is the most powerful politician and minister in the state. He has his own camp, separate from that of nephew Akhilesh. He is reputed to be considerate and takes care of his personal and party workers. As the Minister for the Public Works Department, Irrigation, Co-operatives, Flood Control, Land Development and Water Resources, his influence is due to the PWD portfolio as this important department maintains roads and government buildings. All contractors working in UP know well how Shivpal functions and they follow the norms within the fraternity. Surprisingly, two other powerful politicians, Azam Khan and Ram Gopal Yadav, mentor of Akhilesh, are at loggerheads with Shivpal. It is rumoured that someone hatched a plot to cut Shivpal to size and got the CM to transfer approximately Rs. 20,000 crore from the PWD for the Agra-Kanpur highway, Lucknow Metro and other highway projects. Equally interesting: a former Mayawati henchman, Navneet Sehgal (a 1988-batch IAS officer of the UP cadre), is the in-charge of this treasure. The PWD has no money now to carry out road repairs and maintenance and to pay contractors for completed projects. And Shivpal is  at a loss. g

The Ram & Shaurya team


india foundation helps at goa meet
 
Ram Madhav, an Andhra Pradesh leader and General Secretary of the BJP, who is Modi’s ambassador at large, is very active on the social front. He organised a three-day conclave in Goa, “Lessons from Civilisations”, involving many well-known personalities from India and abroad, under the aegis of Madhav’s social outfit, India Foundation. Defence Minister and ex-CM of Goa Manohar Parrikar, Minister of State for Finance Jayant Sinha, Goa chief Minister Lakshmikant Parsekar, Andhra Pradesh Chief Minister Chandrababu Naidu and Minister of State for Commerce Nirmala Sitharaman were the speakers. India Foundation has emerged as an influential NGO as National Security Adviser Ajit Doval’s son, Shaurya Doval, is one of the main architects. An alumnus of the London School of Business and Chicago University, he has worked as an investment banker for GE Capital and Morgan Stanley and heads the India unit of an investment fund, Zeus Caps. He is also very active in planning Modi’s rallies abroad, attended by the Indian diaspora. Ram Madhav has an able partner in Shaurya and his India Foundation. g
 

You’re incompetent, Chhota Rajan sneers at CBI

 
They say that crime is usually a step ahead of the law. Rajendra Sadashiv Nikalje aka Chhota Rajan was certainly ahead of the Central Bureau of Investigation (CBI) when he was in their custody, stationed in the investigation chamber in the organisation’s headquarters. Now, Chhota Rajan is a dream catch (it is said that Ajit Doval, the 70-year-old National Security Adviser, was the brains behind his arrest, having told some people he was in touch with the Indonesian authorities a few days before the news broke) for an investigation agency. When an international gangster is nabbed, a complete dossier is immediately readied for the interrogation. But the CBI was not equipped to interrogate him (who ordered that the agency should carry out the interrogation has not been disclosed). Sources say that Chhota Rajan realised in no time that his interrogators were novices regarding the international underworld. So, one day, during his interrogation, he bluntly told the CBI men that they were not competent enough to interrogate him and he would only speak to senior Intelligence Bureau (IB) officials with domain knowledge of global crime. The CBI officials did not want to call the Mumbai cops as they were very harsh with the gangster when they interacted with him in the first phase. The second problem was that he could not be sent to Mumbai. Now Chhota Rajan is housed in Tihar Jail Barrack No 2.g
 

Kejriwal driving his babus away

 
Rarely do street protest leaders turn into good administrators on taking hold of the reins of government. There are umpteen examples to cite from the recent past…Karpoori Thakur, Devi Lal, Mamata Banerjee…and now there’s Arvind Kejriwal. That the government of Delhi is functioning at all is a wonder. There’s mayhem and discontent in the corridors of power. Kejriwal does less work than he creates news. He has reportedly created a coterie of a few senior administrative officers who are managing to run the government with the help of junior officers. IAS officers in Delhi are aghast and unhappy. AAP MLAs have become openly demanding and, like any other political outfit, want their supporters to be accommodated within the government and sarkari social benefits to be doled out to them. Second, the tone and tenor of the ministers and MLAs have become aggressive. Naturally, most senior officers of the AGMUT cadre are to be seen in the corridors of North Block. Insiders reveal that the Delhi bureaucracy is not left with much that is constructive or career promoting. Generally, AGMUT-cadre officers are known to stay more in Delhi than any other place, but now they are all looking to go anywhere else. There should be harmonious relations between the bureaucracy and the Chief Minister. Kejriwal should mend his ways fast.g

Snafu in PSUs

Public Sector Undertakings (PSUs) are crucial for any government but it’s very difficult to understand their complete network and they are dealt with by related domain ministries. The Modi government has a massive restructuring and disinvestment plan for PSUs. Approximately 50 of them can sustain themselves, the rest are like the burden on Atlas’ shoulders. But the government is cautious regarding those PSUs that need a Chairman and Managing Director (CMD).  It appears there is a crisis of competent and worthy people to appoint. The National Mineral Development Corporation, the Steel Authority of India and NTPC are examples of important PSUs which are headless. These are massive PSUs with budgets equalling the national budgets of some of the tiny European countries. Functioning without a head or led by an officer with additional charge affects the performance of the organisation. Major policy decisions are not being taken. And this impact travels down the line in the organisation. Though CMDs for NMDC and SAIL have been selected by the PESB, their files are awaiting approval for months. Nothing can be done to speed it up. The PM cannot be directly approached for this. Sorry status quo.g
 

Making amends for amending an Act

Narendra Modi’s efforts to bring in Foreign Direct Investment are bearing fruit but the big-ticket companies are waiting and watching regarding Vodafone’s alleged tax evasion. Vodafone is embroiled in a tax dispute over its purchase of Hutchison Essar Telecom services in April 2007.  The transaction involved purchase of assets of an Indian company so the transaction, or part thereof, was liable to be taxed in India, according to the tax department.

A fierce corporate battle ensued in the courts. The then Finance Minister, Pranab Mukherjee, was so determined to recover the tax that the government changed the Income Tax Act retrospectively and made sure that any company, in similar circumstances, was unable to avoid paying tax by operating out of tax havens like the Cayman Islands or Liechtenstein. In May 2012, Indian authorities confirmed they were going to charge Vodafone about Rs. 20,000 crore ($4.5 billion) in tax and fines. The Congress party wanted to amend the amended Income Tax Act immediately after Pranab Mukherjee became President of India but the problem was that the President would have had to amend his own Act as Finance Minister and this was awkward. Multinationals inclined to invest in India are waiting for the amended Act to be amended. This can be done by a simple majority in Parliament. Sources disclose that former Finance Minister P Chidambaram has pointed out the issue to Finance Minister Arun Jaitley in a special meeting. Now the ball is in the Modi government’s court.
g