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Visit arvindagarwal2.blogspot.com for posts from 2017 to 2019

Saturday, March 16, 2019

India sits at the centre of the Indian Ocean rim, and has burgeoning populations and raw material sources on either side, from nations in East Africa, Middle-East, ASEAN,  Australia and Bangladesh. India is a would-be, hard-to-ignore magnet, with prospering one-sixth of the world population. IO rim nations are favoured in Indian defence spending, maritime security accords, foreign policy support, development efforts and cultural exchanges. India is investing in connecting land-locked Afghanistan and CAR to IO via Chabahar deep-sea port in Iran, and Eastern Europe via North-South Transport corridor.

Sagarmala is on a mammoth scale. Centre's rush for completion in just 5 years is laudable if not preposterous. Work on many of 173 sub-projects has already started (see link 1). Figures and facts about Sagarmala are an order above others: Rs 4 lakh crore basic infra spend, 10 million jobs, Rs 35k crore logistics savings and $110 billion merchandise exports;  6+ new mega-ports, world-class upgrade to existing ports for 1000 tonne more capacity, 5 x coastal shipping volumes; 10,000 km port connectivity by rail, waterways and expressways; smart port townships, extensive development of fishing communities, cruise terminals and island tourism; and Rs 8 lakh crore spend on 14 coastal economic zones and 12- 27 industrial clusters.

Transhipment port business can be captured by tailor-made, mega-ports in South India (see link 2). Logistics cost savings come from shifting export-orientated industries to coastal EZ (esp. bulk industries, re-exports) for costs and faster transit; world-class throughput, minimal costs, deeper drafts of upgraded ports; reduced transshipment costs;  dedicated warehousing and streamlined customs procedures; exploitation of inland waterways and coastal shipping; multi-modal transport links to rest of India.

Coastal Economic Zones: analysed from pages 22 onwards
https://drive.google.com/open?id=0B399nzYJFwacMnpmYVVheFJtSk0
Gadkari is giving a water access project to Raj and Guj, not solving the water problem!! Land, funding and surveys done, so project is good. Port connectivity means a lot of infra can be added and cost recovered easily. Two way traffic will make canal viable for private players.

Gadkari may be thinking of this new method: Sunlight applied to salt water produces hydrogen peroxide, which burned in a fuel cell generates electricity. Solar is converted to electricity at an impressive 28% efficiency. Hydrogen peroxide can easily be stored till power is needed (see link 2). Salt water is drawn from canal. Note: Drinking water and salt can be obtained by reverse osmosis of salt water & salt water can be dried in Raj desert to make salt.

Urea can be produced from either imported gas via LPG terminal in Kandla or through H2O2. Main project is coastal shipping of coal from Odisha; but Raj has a few things to sell to rest of India (like lime) so it makes sense to do this project.

Water woes in Rajasthan, Gujarat could be history with Nitin Gadkari’s dream canal

Textile sector decides whether India will win by doing whatever it takes, or fails despite doing everything possible. India is not out yet:

1. Step up work productivity and cost reductions.
2. Formalize, scale up units to optimal size.
3. Skill workforce, pay higher wages or benefits for better productivity.
4. Locate to minimize logistics and form production clusters (sharing jobs, skills, contract work, infra).
5. Partner with Govt and States for lowering CapEx and Opex.
6. Industrial collaborations so multiple suppliers contract to clusters of MSMEs, that have achieved 1-5.

> Skill program of Govt
> Housing program of Govt
> Low cost loans for rapid expansion
> Energy efficiency procurement of power ministry
> Textile technology upgrade program (grouped procurement poss)
> DIPP export incentives.
> Port-led industrialization; or centred on air, rail or waterways.
> Swachh Bharat mission for help in pollution control
> Competitive power tariffs policy (not subsidy) of States
> Assured water in exchange for cluster recycling of solids and water.

Key industries for Industrial new jobs creation
- Textiles
- Food Processing
- Electronics and IT
- Shipbuilding
- Defence
- Mining
- Infrastructure
- Heavy industries
- Auto

India’s knitwear capital Tiruppur takes on apparel leaders China, Bangladesh


Niti Aayog State reports on Agriculture:
http://niti.gov.in/states/state-reports & http://niti.gov.in/states/state-reports?page=1

State presentations
http://niti.gov.in/states/state-presentations (only a few states)

Kerala - Niti report paints a terrible state of affairs, probably the worst managed among big states. Maha should have gotten that spot for its sheer corruption.

Chhattisgarh presentation - good suggestions, eg groundwater recharge. The phenomenal growth in fisheries and livestock. Rice enhancement award 3 years running. Horticulture area grew an amazing 14% pa for 12yrs. But cereal crop growth at below national average.

Rajasthan report:
Niti Aayog's Rajasthan Agriculture report 2016

Jharkhand report:
Jharkhand report

Kerala report:
Kerala report

Govt's action plan for the Blue Revolution has Quality Production Management, meaning deliverable goals, timelines and costs. All the key components are properly addressed (see link 2 & 3).

Deep sea fishing - gets a major push
* Inadequately exploited EEZ. Fishery Survey of India for EEZ surveys and officer training, to be expanded and upgraded.
* Fishing in high seas can increase the catch by ten times (see link 4). Deepwater prawns and squids found ( link 5).
* Early warning facilities and coastal disaster proofing for natural calamities.
* Onshore fisheries stations, cold chains, marketing facilities, upgraded logistics.
* Grants for housing and community infra.
* Financial support for large trawlers, conversions, upgrade in technologies.
* IT & Satcom, GPS tracking, eco-sonar and rescue beacon.
* Skills training. Insurance cover. Assistance during the ban period.
* Compulsory registration, enforced bans to improve stocks. A greater role for coast guards in security, policing and rescue.

Caged fishing - a revolution in itself
* Huge unexplored regions and under-exploited water bodies.
* Landing centres, cold chains, ice makers, driers, hygienic marketing facilities and allied industries are being created.
* Low-cost hatcheries or fish seed farms in JV with the private sector.
* Subsidized equipment and low-cost finance.
* To improve species mix, apply scientific practices and better support (training, demonstration, advice).

* Area mapped for salt marshes, estuaries, waterlogged land, ponds, tanks, canals besides lakes, reservoirs, rivers, streams, large marine bays.
* Marine caged fisheries around the coast and sheltered bays.
* Brackish wetlands, water-logged areas, estuaries totalling 1.4 m Ha has been identified. Unused area (89% of total) were ear-marked for shrimps or mud crabs.
* Large freshwater bodies can support marine-styled caged fisheries.
* Hilly cold waters, ponds, tanks, paddy fields, streams and irrigation canals are being improved, developed and/ or exploited.

* Fingerlings can be breed from pathogen-free fry in situ, to improve availability and reduce transit losses (see Jharkhand).
* Standard practice adopted should include: regular cleaning, feeding, disposal of dead fish; checks on fry size, health (reaction to feeding) to segregate weaker growing fry and transfer well-sized fingerling to separate cages or large water bodies.
Reference: http://pubs.iclarm.net/resource_centre/WF_2496.pdf

Mariculture - endless possibilities
* Good variety, markets for species incl. exports.
* High productivity in a limited area (e.g. 35 kg/m3), good profitability.
* Enormous capacity to scale up ( i.e. cage size, nos of cages in a farm, nos of farms in a cluster; so, 1 cluster of 5 farms, each farm has 50 cages).
* Secluded sites ideal like lagoons, bays. Floating cages withstand higher depths, winds and waves. Submersible and deep-sea cluster possible.
* Endemic species of fish preferred, suited to water conditions, temps, salinity, oxygen and pollution; and likely fluctuations of same. Fish eg. cobia, bass, grouper, snappers, mullets, lobsters.
* Mixed culture like mussels (seeded ropes) and seaweed useful; short season culture can be done during fishing bans.
* (My input: smart monitoring or automation will take mariculture to the next level).
http://www.incois.gov.in/documents/ITCOocean/Mariculturesociety.pdf

Efforts in individual states
Maharashtra:
MH offers investors 4000 ha or 1% reservoir/dams for high-density caged fishing, ie 5 to 7k fingerlings/ cage or yield of 5 tonnes. Fish feed availability, skill development and all clearances pre-arranged. Real-time monitoring proposed for water and fish (weight, nutrients, size). Fish such as tilapia, pangasius, basa, Asian bass, shrimps (see link 6). Also promotes inland brackish waters (shrimp) and marine sites. Revenue upward of Rs 2000 crore expected from dams. Dredging can yield high nutrient soil (see link 7).

Jharkhand
Huge scope to grow fish farming. Pond fishing (Matasya Mitra) has been very successful, so more are being dug. It expects to scale up caged farming in reservoirs, from 2100 cages to 5000 cages / 20,000 MT in FY18 (see link 8). 50k fry (3g) are added to each cage. Fish such as pangasius, rohu and katla.

Kerala:
Calm waters off Kerala (and W KA) are good for deep sea cage farming, sized 13m dia X 30m deep (!). Expected to produce 90 tonnes/ cage (!!) of cobia, pompano, grouper and sea bass (see link 9).

Telangana
Surge in growth of f/w fish and prawns (2010/11 to 2014/15, total @18%pa& prawns @ 40%pa) (see link 10). Cage fishing for breeding fingerlings started in 6 major reservoirs; 2 x 6 cages each. Following others, intends to scale up rapidly. Moving water of reservoirs washes nitrate/ nitrite pollution making it ideal for intensive rearing (see link 11).

See others at:
http://www.thefishsite.com/fishnews/vars/country/in/

PM Narendra Modi's 'Neel Kranti' for fishing needs Rs 17,199 crore, government talks to World Bank

Transforming India: Key accomplishments and Defence acquisitions

Smart cities and Digital India
====================
How Smart City is the way ahead for India
===================
Smart cities concept is about improving cities through citizen involvement or bottoms up approach. People's movement brings commitment, good ideas and feedback at various stages. Primary knowledge domains are in planning, architecture and design, re-finance, technology, integrated thinking and problem solving, and social change.

Smart cities improvements can be where:
a) New part is developed
b) Existing area is improved
c) Designs or aesthetics are improved
d) Systems are improved
e) New service is provided
f) Experience with services is improved, or
g) Tasks performed in the city are made easier.

IT package will specify objective, processes and equipment
----------------------------------------------------
a) Electronics and embedded systems: to measure, track and act on local or relayed information.
b) Information Technology: to operate the overall system and/ or analyse data into useful information and actionable intelligence.
c) Telecom.

Electronics and application
1. Measurement: the first requirement is to input data, automatically collected from electronic devices or sensors. The aim is to collect from as many sources as possible.

Standalone smart meters for recording and transmitting readings for water, power, gas, etc. Smart meters are cost-effective for collecting readings. These are provided real-time free from human interference and can be set-up for automated billing. Data from a smart meter can be used for feedback, eg, data can identify unbilled usage at a feeder or locality.

Examples of measurement or feedback devices: sensors in smart buildings for climate control and detecting movement of people; water and pollution levels in rivers; sensors for air quality; parking booth for whether the lot is full; access control in buildings for crowd management; digitally enabled cameras for counting cars, people, etc and assessing queues.

An example of feedback to the human interface is a security camera. Images can alert a guard to act and can be recorded as evidence of a crime.

2. Tracking - A GPS device fitted to a unit can track the whereabouts and show the route. It informs the service provider about service delivery. eg. delivery of parcels, coverage of Garbage truck, space between buses.

A person or a vehicle can be tracked with individual markers left at entries and exits. It may be useful in security and possibly for planning a bus or metro system.

3. Control - Return loop from IT or embedded system can control devices like water pumps, parking booths, equipment functions, entry and exit control, lighting, heating etc; or displays like traffic signals and information screens.

Telecoms
Wifi or wired network to a local controller is sufficient for simple tasks. Low power wide area network is used to disseminate data more widely and is useful for dispersed or complex tasks.

Integrated approach - an explanation
-------------------------------------
Sensors are linked at the city or national level. Data is streamed from varied sources and transmitted on wide access networks. The highly complex task of processing is accomplished by machine-to-machine processing, cloud solutions and internet of things. Solutions devised from an integrated approach have morphed into national level enterprises. Cities have shown willingness to buy into the service. Examples of City-level integration: Control Centres for traffic, security, emergencies, utilities, suburban and metro systems.

Also: Advances in telecom technologies assisting Smart Cities deployments
Next 20 years of Indian Smart Cities: Challenges & Opportunities 

How Smart City is the way ahead for India


Spectrum and backhaul transport technologies
==========================
1. Spectrum: Informative video, find a youtube version. Q & A from 24.15.

2. Optical fibre network & microwaves
See: ETTelecom Webinar: Access and backhaul transport technologies
https://www.youtube.com/watch?v=YkrKEGSQOMU

Mobile communication is the main vector for voice and data transmission in India. Other modes like landlines, satellite, cable and private networks do not exist to any extent.

Spectrum availability
--------------------------
Spectrum was tied up with PSUs due to legacy issues. Govt has brought back spectrum for auction by re-engineering PSU equipment. This has taken time and persuasion, and as a result, no significant new spectrum was introduced until the current auction. Spectrum availability in India is less than half the world norms. More spectrum is now required to meet the twin demands of higher data transfer and higher speed. Heterogeneous technology enables devices to use multiple bands simultaneously; so spectrum bands can be used interchangeably to support 3G, 4G, 5G and CDMA. Spectrum with an operator is a combo of "efficiency" and availability of bands.

The current auction offers more than double the spectrum. Problem is how to fund the cost. Industry feels the revenue per user will not increase significantly so they all want the most efficient 700 MHz band. Govt has priced this band at its efficiency rating vs 1800 MHz band, making it four times the cost of earlier auction price of 1800 MHz. Operators say they will keep away from 700 MHz, except for smaller circles that had low bids on 1800 MHz; they will cover the gap by adding higher frequencies.

Targets and costs
------------------
Govt is aiming for 1 billion broadband users through mobiles, at a higher base speed of 2 Mbps. It desires universal coverage of villages with a high-speed fibre-optic network, radio and/or satellite. Digital India has other initiatives including the E-services and Digital transactions, Smart cities, Govt private network and Make in India. Costs though only estimates comprise Spectrum costs at Rs 410k crore for 700 MHz; towers at Rs 60k crore, microwave investment at Rs 110k crore, BharatNet including Govt network at Rs 70k crore, etc.

Financing Capex
---------------
If Industry cannot increase revenue much beyond the current Rs 250k crore, how will it fund CapEx? Total committed debt of telcos is Rs 380k crore. Of total current debt of Rs 270k crore, COAI firms have Rs 178.5 crore at decent debt/ Ebitda of 3.9 (comparable to the world: 3.0); while others with Rs 92.2K crore debt are struggling.

Govt has made a few decisions:
1. Split license fee component into annualized payments and a lump sum.
2. Spectrum usage charge, a remnant of "pay as you go" scheme has been rationalized and reduced.
3. Universal Service Obligation will fund BharatNet and remote Wifi.

Complaints from Industry
-------------------------
Industry doesn't like lump sum payment of license fee because it leaves them less scope for Capex. They were pleased with pay as you go, which was introduced when major international companies overbid for licenses and then left without a proper roll-out. Govt of day decided to grant permissions to expedite matters. Industry is complaining about Universal service charge because they are required to provide full coverage in their circles. Industry feels Govt should rethink base price for 700 MHz. It says Govt will get more revenue in future if 700 MHz is adopted now.

Govt doesn't want to forgo Universal Service Obligation levy for obvious reasons. It can not tilt the auction to favour existing operators as this will be challenged in Supreme Court. Govt wants revenues in current year at it has more pressing needs like fiscal deficit and recapitalizing banks. It may or may not improve the situation in the next fiscal - ie. rolling out 700 MHz spectrum in the way industry wants!!

Spectrum Auction 2016: How industry is gearing to match government expectations amidst financial

Is Kerala's early success, a result of Swachh Bharat Abhiyan?

National mission for ODF, launched by PM Modi is predicated on efforts of States and financial support from Centre. States that finish early deserve to be lauded, but perhaps the maximum praise should be reserved for States that started with the heaviest burden and make the most progress.

Latrines coverage 2001 v 2011 (in laggard states, see link 5)
------------------------------------------
Odisha           15       to    23
Jharkhand      20       to    23
MP                  24       to    30
UP                  31.5    to     37
AP                  33       to     52
Also:  Bihar     23   &   Chhattisgarh    24    in 2011 (link 6)

Factors affecting ODF
-------------------------
Availability of toilets, cost of hygiene, water availability, rural vs urban, geography and demography, information and training at community level (see link 1), social and govt pressure.

Massive Challenge for SBM
SBM is targeted to complete national ODF by 2019. Yet the rate of fall in open defecation has been very unimpressive. From 2010 to April 2014, OD numbers fell by just 42 million (from 637 to 595 million, see link 1). Govt has backed itself for good reason:
-- Urbanisation and greater availability of piped water. Rising incomes and awareness of health hazards, environmental pollution and aesthetics. In fact, the majority in backward regions want toilets (see link 1), partly because of safety concerns for women at night and near dangerous animals.

-- Large scale construction of household toilets and community toilets is majorly funded by SBM. Toilet-building in public places, like railways, schools, health centres were put on a mission mode. SBM is backed by regular surveys, feedback and ranking of villages and states.

-- Social pressure, such as from school children go home after using toilets at school; or campaigns run in small cities by NGOs; or behavioural change programme that is part-funded by World Bank and run by Self-help groups in rural areas. It takes the form of advice on toilet build, training, hygiene, peer pressure and community effort. Other financial inducements are added, eg. priority water connection to ODF areas; processing waste units, e.g. power or biogas, fertiliser and recycled wastewater. Eg. Gujarat has trained 2 self-help group women from every one of 18,000 villages. Not enough to just build toilets (see link 3).

20/9/2016: Status of ODF
------------------------------
Sikkam                      ODF
Himachal Pradesh   97.11      Kerala             96.35
Haryana                  87.33      Uttarakhand    86.42
Mizoram                  84.75      Meghalaya      82.47  Manipur  81.04
Punjab                     78.89     Gujarat            79.37
(Ministry latest 2016: see link 4)
Nagaland (20015: NSSO)

Status  23-8-2016
------------------
Sikkam is ODF. Kerala, Gujarat to follow soon. Haryana, Punjab, Rajasthan, HP, Manipur are making rapid progress. Rural scene is very poor in UP, Bihar, Odisha, AP, J&K, Assam, WB, TN, Karnataka (see link 7). Lack of political will may be to blame. Many cities, districts or blocks of villages are charting their own course in most states. AP and Telangana are planning to be urban ODF by April 2017!

Major discrepancies have been noted (see link 8). ODF status needs to be backed by a proper survey, results publicized and checked with feedback from locals.

Kerala to be first 'open defecation-free' state with 1.9 lakh new toilets by November - The Economic Times
Maharashtra (Part 3)

Pawar showing his true colours in Cooperative sector: In 2016, Maharashtra chief minister Devendra Fadnavis’ attempt to clean up the cooperative banking system set him on a collision course with Sharad Pawar's Nationalist Congress Party (NCP), along with the Congress party. At an event in Pune, Sharad Pawar warned Fadnavis to not sabotage the cooperative movement. Fadnavis retorted that the cooperative sector needed drastic reforms simply to rid it of corruption and malpractices. The state would be following RBI's mandate in this matter.

Since the 1960s, first the Congress and then NCP after its formation in 1999, had expanded their catchment of political influence through the network of cooperative societies and banks that form the backbone of Maharashtra’s rural economy. “Even the hint of a threat to this empire sends alarm bells ringing,” said an unnamed BJP minister.

As part of RBI's mandate, Fadnavis's govt passed two ordinances to curb the power of Coop bank directors. These barred directors held guilty of malpractice and barred directors of
Coop banks put under administration from contesting elections. These reforms should ensure that the same set of corrupt directors do not continue on the boards of cooperative banks.

“The RBI has frequently asked the state government to put in place a legal mechanism that disqualifies the people who have caused losses to the bank and sheltered malpractices from contesting elections and getting elected to the board of directors again. Investigations into the irregularities of almost all district cooperative banks have revealed that the very directors who indulged in financial irregularities have come back re-elected. This has virtually stalled the implementation of reforms and judicial process to carry out changes,” the official said, asking not to be identified.

The ordinance will apply to all cooperative institutions registered under the Maharashtra Cooperative Societies Act, 1960.

The cooperative sector has deep roots in the state. Maharashtra has 31 district central cooperative banks affiliated to the Mumbai-based Maharashtra State Cooperative Bank. These banks together have more than 3,700 branches and more than 21,000 agriculture credit societies. Through this wide network, the banks have more than 10.1 million members, nearly half of whom are active borrowers. Maharashtra also has 520 urban cooperative banks.

“This network is the primary source of banking for a majority of 10.3 million farmers in Maharashtra and it plays a major role in the political economy of rural Maharashtra,” said the minister quoted earlier.

He conceded that the state’s Congress leaders in 1960s deserved credit for establishing the cooperative movement, but pointed out that the Congress-NCP had also corrupted the sector for political gains.

Over the years, these banks have been misused for arbitrary and preferential lending, nepotism and expansion of influence through patronage.

This has led to several district branches accumulating huge bad loans owing to inefficient recovery. Many of them have been put under administrators as per RBI guidelines.

A former bureaucrat who is familiar with the state’s cooperative sector said that Fadnavis is in a unique political position to carry out these reforms.

“Unlike many of the former chief ministers and some of his BJP colleagues, Fadnavis has no cooperative sector background nor does he have stakes in the sector,” he said, requesting anonymity. “On the other hand, there is an incentive to carry out these reforms since a large number of members of these banks who are farmers have for long resented the fact that the banks have become more of political fiefdoms than institutions of formal agriculture credit, which they were supposed to be.”


Devendra Fadnavis faces hurdles in cooperative banks reform