Fly on the Wall - Why Blame Rahul Gandhi

by Harish Gupta, National Editor, Lokmat Group

Why Blame Rahul!

Why Blame Rahul Gandhi for his usual year-end sojourn in Italy abandoning the Foundation Day function of his party. There is no denial that he pushes off on vacation many times during the year and that has been his routine ever since he stepped into politics since 2004. But why blame him! He doesn't even hold any office in the party. Isn't it? Even Samajwadi Party president Akhilesh Yadav left for London with his family. As if this is not enough, another farmer leader and Haryana’s Deputy Chief Minister Dushyant Chautala is holidaying in the Rann of Kutch. Want to know where Bihar’s Tejashwi Yadav goes for holidaying? Delhi is his destination and he doesn’t meet anybody here. He is not even seen with the agitating farmers or sending a contingent from Bihar either. Young ministers belonging to the BJP may be sulking as Modi is keeping a close watch on them and a couple of them have paid the price too in the past. But other parties have no such problem.

A Saffron Flag in Srinagar, finally

BJP may have won three Councilors out of the 140 seats in the District Development Council (DDC) polls in the Valley and 72 of the 140 in the Jammu region. Of the three, it won just one in the Srinagar rural DDC. But it is trying hard to capture it by engineering a majority. A couple of Councilors belonging to the National Conference and PDP have already switched sides to the Apni Party of Altaf Bukhari, a local businessman & ex-minister in the PDP-BJP government who floated his own party after the abrogation of Article 370. The BJP is also wooing 4 Independents as the PDP, NC & Apni Party won three seats each. Nobody has a majority. The BJP’s top leadership is working overtime to capture the Srinagar DDC as it will be a great day in the history to have BJP-Apni Party DDC in the heart of the Valley.

The BJP has perfected the art of converting a minority into the majority in many states and this process will now continue in the Valley too. Interestingly, the BJP recently captured the Srinagar Municipal Corporation indirectly by engineering defection of Junaid Azim Mattoo to the Apni Party. Junaid Azim Mattoo was part of Sajad Lone-led People's Conference (PC). Later, he quit the PC in 2013 to join the National Conference and after winning the polls, switched to the Apni Party. Altaf Bukhari and Junaid Mattoo have declared their Endeavour to make Srinagar a world class city. If this alliance works, the saffron flag may fly in Srinagar rural while Srinagar city is already under control of a friendly party of the BJP.

Will Modi Blink ?

In his first term Modi tried to tinker with the Land Acquisition law. But the first Minister for Rural Development, Gopinath Munde, didn’t agree. Even his successor Nitin Gadkari couldn’t deliver what Modi desired. Finally, Modi brought in Chaudhary Birender Singh who too failed. The PM was persuaded to bring back the UPA government’s Land Acquisition law and Modi had to swallow the bitter pill. Now six year into the job, Modi is facing another Waterloo and it is not the creation of the Opposition nor gifted in his lap by Rahul Gandhi. Riding on the massive mandate of 2019, he pushed these Agri reforms. He may still succeed. But the situation looks grim and he doesn’t have too much time in his hand either. Modi's other problem is that he doesn't trust anybody and doesn't share what’s cooking in his mind. Insiders in the government say that he has been advised by certain well meaning people to allow the states to do whatever they want to do with these three Acts. Even the Supreme Court had suggested deferment of these Acts and start negotiations. A negotiated settlement before the Republic Day and Parliament session is a better option in any case. Modi had certainly not bargained for this.

No News is good news

For All India Radio, the agitation of farmers on Delhi borders is no news. Listen to the prime time news bulletins of AIR in the evening slot at 8.30 pm. It seems the agitation doesn’t exist. The entire bulletin is full of government handouts and news sent from states. Why so? The AIR has stopped taking the news service of PTI, UNI, ANI and other agencies. Whatever news is sent by its correspondents from across the world is broadcast.

After CAA, battle begins on NPR now

by Harish Gupta, National Editor, Lokmat Group

After CAA, battle begins on NPR now

Maharashtra keeping fingers crossed   

States can delay NPR, not defy

Harish Gupta

New Delhi, Jan. 16

A fresh row has emerged between the Centre and a few states on implementing National Population Register (NPR) exercise to begin on April 1 this year. Though the Centre is working hard to calm down protests on the Citizenship Amendment Act (CAA) by not notifying rules, some states have toughened their stance against the NPR now.

While West Bengal and Kerala have officially written to the Centre to put the NPR on hold, Andhra Pradesh, Telangana and Pudduchery & Ladakh (UT s) have not notified dates for conducting it NPR in their respective territories.

Three states — Maharashtra, Tamil Nadu and Rajasthan — devised a new strategy by asking the Central government if the NPR data could be shared with them. These states said this would to help in ‘identifying genuine beneficiaries’ for their welfare schemes. Since the Centre has not responded positively, they are sitting pretty as well. Punjab said it would take a call only after the state Assembly deliberates on it. The NPR exercise has already been initiated in Odisha with the state government clearing all the parameters laid down in the NPR act.

The Centre is not in a hurry to press the states as they had already notified NPR implementation last July. These have developed cold feet due to one reason or the other. It would be interesting to mention that the NDA government revived the NPR in 2015 after the UPA stopped it midway in 2010 due to the launching of Aadhaar. The NDA created an electronic data base of 119 crores people in 2015-16 listing usual residents who provided Aadhaar, Voter ID card, ration cards and other details if they possessed the same. There may be some controversy whether providing details is mandatory or not. But the NPR manual of 2020-21 clearly says that this exercise is mandatory and time bound and those willfully defying could be prosecuted.

However, in this case, the state governments have developed cold feet which can lead to the delay.

Ends 

Why delay to chose new Congress President ?

by Harish Gupta, National Editor, Lokmat Group

Special Report 

Why delay to chose new Congress President ?

Sonia hopeful of Rahul's return

Harish Gupta

New Delhi, July 27

The suspense continues over the delay in choosing a new Congress president after Rahul Gandhi abruptly quit as party chief on May 25.  Though it was widely reported that the Congress Working Committee will meet this week to select a “working president”. But Rahul Gandhi left for the USA leaving everyone high and dry. Rahul Gandhi was back in the Capital on Thursday last but there are no signs of a CWC meet. 

Highly placed sources say that the CWC meeting may not take place early. These sources say that UPA chairperson Sonia Gandhi is in no hurry either to get a new “working president” elected. She wants to give enough time to Rahul Gandhi to ponder over his resignation. She believes that Rahul Gandhi quit the post in a huff and  anger in the aftermath of massive defeat of the party in the Lok Sabha polls on May 23. Rahul Gandhi was extremely angry as he had expected the party to win at least  150 Lok Sabha seats. His assessment was based on data analytics head Praveen Chakravarty  who had convinced him of achieving the target and also reassured him that “Chowkidar Chore Hai” slogan is successful. Several state Congress leaders had told Rahul Gandhi of party getting good number of seats in their respective states. It was in this background that he went ballistic at the CWC meet for the poor showing and held them responsible too. He tendered his own resignation and had expected that they too will follow suit. But nothing of the sort happened and things came to a standstill.

Twin challenges for Opposition Search for new name as UPA Is Dead

by Harish Gupta, National Editor, Lokmat Group

Twin challenges for Opposition

Search for new name as UPA Is Dead

Pre-poll alliance not easy

Harish Gupta

New Delhi, Feb 20

Intense parleys are on among the leaders of the Opposition parties whether to form a pre-poll alliance and give a new nomenclature to such a front.

Most parties who met at the residence of NCP leader Sharad Pawar last week,were of the view that instead of the United Progressive Alliance (UPA), a new name be coined to show-case unity of the Opposition. A senior leader even suggested that the UPA be renamed as ‘People’s Progressive Alliance' (PPA). But there was no unanimity. Pawar reminded that he was the first to form the Progressive Democratic Front (PDF) in Maharashtra 40 years ago.

The leaders were also receptive to TMC leader Mamata Banerjee's idea that a pre-poll alliance be formed. But a Congress leader sarcastically said that all Opposition parties should speak in one voice irrespective of the formation of a pre-poll alliance. The leaders were clearly of the view that in the absence of a pre-poll alliance, the President of India will have a leeway to use his discretion to invite leader of the single largest party in the Lok Sabha after the polls to form the government.

While the task for evolving a consensus among the parties was entrusted to NCP leader Sharad Pawar, the Congress was sounded out to prepare the Common Minimum Program (CMP) of all like-minded parties.

Mamata Banerjee has the difficult task to create unity of the Opposition parties in West bengal first where her party is biggest in the alliance. The Congress leadership felt that she was trying to rather weaken the backbone of the party in West Bengal by luring its MLAs and sitting Lok Sabha MP s to TMC. “She should herself stop poaching our MLAs and Mps”, said a senior leader.

There is a possibility that a crucial meeting of the Opposition parties may be held either on February 25-26 or after the Congress Working Committee. The CWC is meeting in Gujrat on February 28 where the draft manifesto of the Congress and CMP would be discussed. TMC has also asked rebel BJP leader and former Union minister Yashwant Sinha to draft CMP for a discussion.

The pre-poll alliance has serious problems as major parties such as SP, BSP, AAP etc won't be in it. Some regional parties would not join the front either. Even TMC is unwilling to accommodate Congress in West Bengal.

BJP Moves privilege motion against Rahul on Rafale

by Harish Gupta, National Editor, Lokmat Group

BJP Moves privilege motion against Rahul on Rafale

Speaker to decide its fate tomorrow

BJP knocks at Ethics committee door too

Harish Gupta

New Delhi, Dec 17

The BJP on Monday launched a massive offensive against Congress president Rahul Gandhi by moving a privilege motion against him for misleading the Lok Sabha by “utterly false statement” on the Rafale deal.

The four ruling party MP s moved the 2-page privilege motion against Rahul gandhi for his statement made in the Lok Sabha on July 20, 2018 which was nothing but “figment of imagination, incorrect and utterly false”. The MP s charged Rahul Gandhi of misleading the House and held him guilty of Breach of Privilege of Parliament.

The MP s also filed a separate petition before the Ethics Committee of the Lok Sabha against Rahul Gandhi saying that his conduct was unbecoming of the MP as he is spreading falsehood in the country despite a clear verdict of the Supreme court on the Rafale deal.

The MP s quoted Rahul Gandhi of saying, “In the Rafale aircraft deal, the UPA government agreed to purchase the aircraft at Rs 520 crores. We do not know what happened and who was spoken to. The Prime Minister went to France but who went with him, the whole country knows. By a magic, the aircraft started costing Rs 1600 crores.”

The MP s said that the above statement is entirely untrue. For reasons of national security, the Government of India has not given out the exact details but has already indicated that the price of the basic aircraft is 9% cheaper and the price of the weaponised aircraft is 20% cheaper compared to the prices being negotiated by the UPA.

The MP s said that this falsehood has been knowingly uttered by him deliberately” and therefore, the motion has been moved.

However, sources say nothing much can be achieved by this motion as the previous privilege motion submitted in the same Rafale deal is still pending with the Speaker of the Lok Sabha.

The four BJP Mps are Nishikant Dubey, Anurag Thakur, Dr Sanjay Jaiswal and Prahlad Patel. If the motion is accepted by the Speaker, it will go to privileges committee of the Lo Sabha headed by first term BJP MP Meenakshi Lekhi. But the fate of the motion is unlikely to be decided by the House as it will adjourn on January and will meet for the interim budget on January 30 and adjourn sine die on February 15.

Ends

N N Vohra offers to quite as J&K governor

by Harish Gupta, National Editor, Lokmat Group

N N Vohra offers to quit as J&K Governor

Lt Gen. Hasnain, Rajiv Meharshi in race

Harish Gupta

New Delhi, June 26

With the Jammu and Kashmir Governor N N Vohra expressing his desire to relinquish the charge of the trouble-torn state, the Prime Minister Narendra Modi is set to take a call on his successor immediately after his arrival from his current US tour.

Highly placed sources say that Vohra had met the Prime Minister last month and conveyed his inability to continue. Vohra has been Governor of the troubled state for more than nine years. A career bureaucrat, Vohra was appointed by the Manmohan Singh government as J&K Governor on June 25, 2008. Though his tenure had ended long ago, he continued in the post.

It transpires that the Modi government has decided to bring in a new governor as Vohra has served for nine years and no tangible results came. Though the name of Union Home Secretary Rajiv Meharshi, a trusted bureaucrat of the present government, is in the reckoning. But it now transpires that PM Modi may do which none of his predecessors dared to do.

Informed sources in the South Block say that Modi may experiment by sending Lieutenant General Syed Ata Hasnain who is a three-Star General of the Indian Army. Of the 12 Governors that J&K has seen since Independence, none of them belonged to the minority community. A worried Modi government undertook an extensive exercise before zeroing on a panel of names including Lt. Gen. Ata Husnain. His name emerged as the Valley is slipping out of the hands with the each passing day and the South Block is extremely worried.

Gen Hasnain has a wide experience of working in the state where he served as General Officer Commanding in Jammu and Kashmir in 2010-2011. He set an excellent example of right use of soft power with hard power.

It may be mentioned that Modi appointed a former Director of Intelligence Bureau as international envoy on terrorism. Despite being a UPA government appointee Ibrahim had opposed certain "political actions" of the UPA regime.

Sources say that a final decision on the successor of Vohra will be taken some time early July.

Ends 

Pawar daydreaming on mid-term poll in Maha

by Harish Gupta, National Editor, Lokmat Group

Pawar day dreaming about mid-term poll in Maharashtra

BJP not worried about Sena

Amit Shah confident SS will vote for BJP presidential candidate

Harish Gupta

New Delhi, June 7

The BJP high command dismissed senior NCP leader Sharad Pawar’s view that Maharashtra is heading towards a mid-term poll.

“Pawar Saheb is day-dreaming. His party is looking for a role in the state and at the Centre. He thinks that Shiv Sena will desert BJP and there will be political role for his party. But nothing of this kind will happen,” said a senior general secretary of the party on the condition of not being quoted.

The general secretary said Maharashtra Chief Minister Devendra Fadnavis is handling the state in perfectly. If he has taken a decision to announce the package sometime in October, it is largely because the Monsoon is about to set in the state. It is expected that immediate problems of the farmers would be resolved and a fair assessment will be made about the compensation to them only after the Monsoon.

  

The BJP leader said  that Pawar is a worried man because the probe agencies continue to go after cases of corruption. The Enforcement Directorate had already gone after Ajit Pawar and the CBI registered an FIR in the aircraft purchase case during UPA regime.

With regard to relations with Shiv Sena, BJP president Amit Shah had told a small group of journalists last week that relations with the ally are cordial.

Amit Shah had said the allies do have their own views on certain issues. The Shiv Sena is an ally at the Centre and in the state and he had not heard anything that they have  changein a democratic set up, an ally is free to express its view and it will be seriously looked into.

The BJP leadership is confident that Shiv Sena will vote for the party’s Presidential this time. It may be mentioned that the Shiv Sena did not vote for the BJP candidate during the two previous Presidential elections. But the Modi-Amit Shah team is confident that Sena will vote for the BJP candidate.

Dineshwar Sharma to to be New Assam Interlocutor

by Harish Gupta, National Editor, Lokmat Group

Dineshwar Sharma to to be New Assam Interlocutor

No extension to P C Haldar

Harish Gupta

New Delhi, April 30, 2017

Former Director of Intelligence Bureau Dineshwar Sharma may be the new Interlocutor for Assam.

Sharma who is considered close to the Modi dispensation as he served IB Chief for two years, is being appointed as Assam’s new interlocutor. Sharma will replace P C Haldar who was also a former IB Director under the UPA government of Manmohan Singh.

The Modi government has decided not to grant further extension to P C Haldar for peace talks in Assam. The Ministry of Home Affairs (MHA) wanted to hold further peace talks with ULFA and other factions on its own. Haldar, a 1970-batch IPS officer who was IB director between 2007 and 2009, was appointed as Assam interlocutor in 2009 and remains in the post for more than seven years. His term ended on December 31, 2016.

MHA officials said that orders were issued early this month informing Haldar that the “competent authority has decided not to extend the term of the interlocutor”. He was directed by the MHA to submit the representations received from various factions till December 30, 2016, the officials said.

Sources said that though the BJP government has come to power in Assam, the Centre plans to continue the dialogue process with the fringe groups. There were also demands from some factions of National Democratic Front of Bodoland (P) to remove Haldar.

Earlier, the Narendra Modi government got top ULFA leader Anup Chetia extradited from Bangladesh who was released on bail ahead of Assembly polls in Assam. According to the MHA, Haldar held consultations with Dima Halam Daogah (Jewel), United People’s Democratic Solidarity (UPDS) and the National Democratic Front of Bodoland (NDFB), and in 2011 was key to the tripartite Memorandum of Settlement (MoS) signed between the central government, government of Assam and UPDS that aimed to provide enhanced autonomy for Karbi Anglong Autonomous Council in Assam and a special package for speedier socio-economic and educational development of the area for which the council was set up.

Talks between the Centre and ULFA were on hold for a while in 2016 due to the impending Supreme Court judgment on petitions seeking 1951 as the cut-off year for citizenship of people residing in Assam instead of 1971 as per the Assam Accord. The case is currently being monitored by the Supreme Court.

NCP may join Congress-led Front Sharad Pawar to be its Convener

by Harish Gupta, National Editor, Lokmat Group

Exclusive report 

NCP may join Congress-led Front Sharad Pawar to be its Convener

Nitish, Yechury, Gowda, Mamata agree

  

Harish Gupta

New Delhi, April 21

The Nationalist Congress Party (NCP) is seriously considering a proposal to join a front of like-minded Opposition parties. The NCP which quit the United Progressive Alliance (UPA) three years ago, is being wooed by the Congress, CPM and the Janata Dal leadership to play a pivotal role in this hour of crisis and strengthen Opposition parties.

According to indications available here one of the suggestions doing the rounds is that instead of the United Progressive Alliance (UPA), a new joint front be formed of like-minded secular parties. This front should be formed early so that enough time is available to put up a credible challenge to the BJP before 2019 Lok Sabha polls.

It is also suggested that  Sharad Pawar be made Convener of this Joint front. Of course, Sonia Gandhi will be named chairperson of this new outfit and Nitish Kumar will also hold a key position in this proposed outfit.

If reports are to be believed, Sonia Gandhi is keen that Sharad Pawar play pivotal role in bringing all Opposition parties together as he has the capability to do so. Though some senior Congress Party leaders were trying to put a spanner in the move. But Sonia Gandhi snubbed them saying that the country was facing a grave crisis and unity of the Opposition parties is needed.

When asked Praful Patel told Lokmat, “ We are talking and various proposals are over the table. I have nothing more to say on the issue as of now. Let’s see”

Sitaram Yechury was also guarded in his comments and said, “ we are working to bring all like-minded forces together.”

However, the NCP leaders told categorically that Opposition unity should not be one-shot affair (for President’s polls). But it has to be with a long term perspective and unity should be with open mind and heart. Obviously, the NCP leadership is hurt that the Gandhis never trusted Pawar.

However, times have changed and it was Congress vice President Rahul Gandhi who had taken the first initiative in March itself when he drove down to the residence of Sharad Pawar signaling that a “thaw” is possible after the two parties parted company three years ago. Later, CPM general secretary Sitaram Yechury held a meeting with Pawar and Praful Patel.

Bihar Chief Minister Nitish Kumar who met Sonia Gandhi yesterday, emphasized the creation of a new front. West Bengal Chief Minister Mamata Banerjee, CPI leader D Raja and others have met Sonia Gandhi recently. Mamata Banerjee flew down to Bhuvneshwar to meet the Odisha Chief Minister Naveen Patnaik to explore possibility to have a working relationship to strengthen the Opposition because Congress is the principal Opposition party in the state. Janata Dal (U) general secretary K C Tyagi is going to Bengaluru to meet Janata Dal (S) leader H D Deve Gowda on Saturday.

Aadhar: The fear psychosis

by Harish Gupta, National Editor, Lokmat Group

The current brouhaha in the parliament, the media and the court over Aadhar, India’s unique identification card for citizens is typical of a nation witnessing a regime change, and its accompanying about-face on policy. It was the previous Congress-led UPA regime, harassed as it was by mounting subsidies and their rampant misuse through corruption, commissioned the services of IT wizard Nandan Nilekani to set up Unique Identification Authority of India (UIDAI). Insiders say it was Dr Manmohan Singh who came up with the idea and the government authority was created to administer the nation-wide 12-digit Aadhar card. The number touched 50 crores mark when UPA demitted office and shot up to 1.12 billion already. But always wary of upsetting the UPA vote bank—be they PDS cheats and assorted rent seekers—UPA chairperson Sonia Gandhi and the cabal around her put roadblocks on its use in one form or the other. The Aadhar actually remained a number, nothing else. The NDA, on the other hand, is keen to use the Aadhar platform for not only incidental operations like distribution of subsidised LPG cylinders but to replace the entire creaking PDS with a Direct Benefit Transfer (DBT) architecture that may include issuing of Food Stamps.

But a countrywide identification system has its downside. If put in the hands of a draconian regime, its most fearsome use may be as an instrument of mass surveillance, much as the Nazis reportedly used an IBM machine way back in the 1933 census to identify the Jews in Germany. But, food and petroleum subsidy alone costing Rs 240,000 crore in 2016-17, and over 40 per cent of grains and sugar distributed across the Fair Price Shops either rotting in transit or getting pilfered, the gain from Aadhar far outweighs its imagined cost and fears. And the ‘cost’ is being cynically exaggerated by a section of leftist intellectuals in the former National Advisory Council (NAC) of UPA; it was popularly known as Sonia Gandhi’s ‘kitchen cabinet’. Jean Drěze, its economist ex-member, is particularly vocal against the NDA government’s plans with Aadhar. He is campaigning that the Aadhar Bill now passed in the Lok Sabha as a Money Bill (so bypassing the Upper House where the BJP is not in majority), is being built “as an infrastructure of social control”.

Last week, after the Lok Sabha cleared the Aadhar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Bill, 2016, Finance Minister Arun Jaitley reminded the House that it was the “culmination of seven years of discussion” over the Bill. It was a confession of sorts of the stiff resistance that the BJP gave to the passage of some features of the law when the latter was in the opposition. But Jaitley was unambiguous in its purpose. He said “it will empower the state to distribute resources to the deserving people and save the resources that undeserving people get”. It is obvious that the economy, plagued by tepid tax revenues and soaring costs of government wages and defence expenditure, is desperate to curb the pressure of subsidies on both economic and social services. Even after setting aside the ‘merit’ subsidies (i.e., the essential subsidies in primary education, health, sanitation and sewage, mid-day meal, etc.), the non-merit (or inessential state spend on the undeserving) subsidy works out to a hefty one-tenth of the GDP. It is anything but sustainable. And the intention to curtail it signifies the political shift from the left to the right that marks the 2014 regime change.

Before the bill’s passage in the Lower House, it went through the Upper House with a slew of amendments, all moved by Congress lawmaker Jairam Ramesh. His amendments sought to prevent disclosure of “biometric or demographic information” in the interest of “national security”. It was proposed that the clause be substituted instead by “public emergency” or “public safety”. There were a few other amendments that were all swept aside in the Lok Sabha, where Jaitley’s ‘money bill’ made short shrift of Ramesh’s suggestions, one of which was against the use of Aadhar number for any purpose not mentioned in the Bill (such as for filing of Income-Tax return).

However, a good question to ask Ramesh could be: why is he nettled by the term “national security”? It is evident that a fear is stalking the opposition benches that the Aadhar Bill, after it becomes a law, may be used by the government to throw open the dossier on every dissenter and everyone who refuses to toe the line, and get its finger on his location, correspondence history, tax details or personal life. In a world which is digitally vibrant, the twelve digits on the Aadhar card are like a screen to the secret police to every secret in one’s life. In South Africa under the apartheid regime, the 1950 population registration data was used to assign in the 13-digit national identification number, the penultimate (12th) digit, telling if its holder is ‘black’ or not. There is no doubt, therefore, that Aadhar can turn out to be a weapon in the hands of the government of the day fighting war on many fronts. Surely, individuals, groups, communities etc indulging in anti-social, anti-national activities may have a reason to be worried too. For students of recent history, the anti-Sikh massacre after the assassination of Indira Gandhi on 31 October 1984 may be a haunting issue in this respect. The Nanavati Commission report cites a glaring succession of the lynch mobs identifying Sikh households in Delhi with unerring precision within 24 hours of the former Prime Minister’s assassination by her Sikh bodyguards. Therefore, when a conspiracy drives mobs, it is not essential for them to act on a public identification network. There was no Aadhar then.

What is more relevant is the fact that the world has changed, and so has technology; and claiming privacy to be a “fundamental right” may be legally debatable but technologically laughable. Assuming that Big Brother is watching one’s movements, it makes sense giving everyone a number rather than making his wheat, or rice, get gobbled up by someone else.

GST: Still A Long Way To Go

by Harish Gupta, National Editor, Lokmat Group

It is universally accepted that a federal country like India badly needs an instrument like Goods and Services Tax (GST) if it must leave behind the colonial legacy of taxes upon taxes. The traditional practice is to tax the cycle wheel maker x% and levy y% on the complete bike, ignoring the tax upon tax on wheel. The problem was partly addressed by Value Added Tax (VAT) in 2005, but it was only partly. As VAT regulations and rates vary across the states, a tendency developed among states to undercut the rates for political gains of the parties in power.

Besides, VAT left uncovered much of the turf as it provided no tax credits for interstate transactions, nor did it apply on services. But GST, as the name indicates, covers all goods and services. Besides, it is an overarching tax that subsumes all indirect taxes under four heads, viz., VAT for intra-state sales, Central sales tax for inter-state sales, excise duty on manufacture, and service tax on all services except the exempt ones. Theoretically, it is simple and clear. And it is revenue neutral, so it will have no adverse effect on tax income of the governments.

However, what has turned GST into such a contentious subject—it will test the Modi government's capacity to get the Rajya Sabha pass the bill—is its essentially non-federal character. It is after all the job of states to manage most of the visible areas of governance, like running schools, hospitals, part-subsidizing rationing system, building roads and bridges, policing, funding the lower judiciary, etc. How well does a party in power at the state level govern its people may depend on a combination of factors, but the volume of state tax revenue is certainly one of them. The fact is, acceptance of GST implies sacrifice of the state's power to raise or lower tax rates. Beside, GST being a tax across the value chain, it hardly promises to make goods and services cheaper. So the fear of inflation dogs state politicians.

These are the reasons why BJP was opposed to GST when the Congress-led UPA government spearheaded the bill, and now that the table has turned, it is BJP which is touting it as a big-ticket reform while Congress till recently was pulling out all stops to stall it. It still is and will most probably use it as leverage against its other prickly issues with government. But now that Congress has lost the numbers and support in the upper house to rustle up a fighting majority, it is expected to be in a mood of acceptance of the GST bill. It may even compromise on its earlier stand that there must be an upper limit to GST included in the very constitutional amendment that goes with the enactment, and may finally settle for a rate band (or "ring fence") in the act. Were it to be featured in the Constitution, amending it in future would have required two-thirds majority in the parliament whereas a simple majority in the lower house is enough to amend a law. But the grumble that may take longer to fade away is due to the states' feeling that they've drawn the short straw.

It is largely a misperception for two reasons. First, GST is a dual tax of which the proceeds are divided between the Centre and the states, based on a formula that will be acceptable to both. Besides, it offers a VAT-like framework across the states, thus making it possible for individual states to act like members of the European Union (EU) and find markets outside the state boundaries at lower cost and with more ease of business. It will also reduce dodgy transactions across the economy, with its consequent salutary impact on state revenues and public morals. It is after all a fact that, prior to introduction of VAT, sales tax machineries at the state level had deteriorated to the depths of the pits. I remember in Mumbai restaurant waiters often whispered into customers' ear: Cash dijiye, parchhi chahiye to tax lagega.

Knowing state governments' sensitivities, the Centre has kept out of GST a range of items on which states are sort of addicted for their tax incomes. The excluded items from GST are: petroleum, HSD, crude oil, gas, Tobacco and, of course, liquor. Maharashtra government earned Rs 13,500 crore last year as excise duty on liquor and another Rs 8,000 crore in VAT. The general estimate is that states in India earn 20 per cent revenue from liquor. Due to over-taxation in Uttar Pradesh, liquor price is so high that booze-happy people drive all the way from Meerut to Delhi to buy their favourite brands at affordable price. Ditto with diesel or petroleum, as their prices widely vary from state to state. A large number of people from Haryana travel to Delhi and UP to get their tanks filled.

Besides, the law still has many grey areas that need to be lighted up. It is a destination based tax, not based on origin (like, say, excise duty). So it must be clearly identifiable where the goods and services are headed. This is a tricky issue with a service like, say, transmission and distribution of power, when part of the service is distributed in states other than where it is generated. It required identification of the ‘point of taxation’ in an unambiguous manner. Therefore, the electricity is also out of the GST purview, for now. But GST is clearly the way forward for the entire nation—not for the Centre alone nor for the prosperous states that produce a lot of dutiable goods and services. For its success, it only requires a world-class IT architecture, and a public awareness that good tax system and good governance are synonymous.

AS PM OF IMAGINATION

by Harish Gupta, National Editor, Lokmat Group

Only two years are past since the installation of the NDA government led by Narendra Modi. It is therefore distinctly premature to pass a judgment. Some governments begin well but get miserably clogged up half way through, like it happened with the second UPA government piloted by Manmohan Singh. It dived headfirst into an unending cesspool of corruption charges, and got terminally tainted. On the other hand, the Rajiv Gandhi-led government began in 1985 amid great euphoria, until rumour of corruption in defence deals became so shrill that every attempt by the government to silence it seemed phoney and the prime minister’s name became mud.

Modi seems to have learnt lessons from the above example, and his promise of “Congress mukt” India is actually a commitment to keep his administration free from the stench of corruption. Unlike Manmohan Singh, Modi is a hands-on PM. Perhaps, this is the reason why there has been no charge of financial depravity in any of the ministries till now. To ensure that the clean image of his administration sustains, Modi has been particularly insistent on transparent e-auction of the natural resources, be it coal, oil or natural resources.

But a prime minister is not rated high simply if he keeps his nose clean. Modi has sparks of originality that marks him out from his contemporaries. Jan Dhan Yojana is an example. On the face of it, it is a simple plan to give a bank account to every unbanked poor. It is another matter that 21.43 crore such accounts have been created under the JDY scheme in less than two years, with the share of ‘zero-balance’ (therefore, nominal) being 27 per cent and falling. But the idea is not to turn the poor Indian into saver overnight. It is rather a financial architecture for direct transfer of all future state subsidies and grants, thus eliminating the pressure of middlemen that has plagued welfare since Independence.

In a sense, Modi is truly a Gujarati trader at heart and understands the importance of cost-cutting through disintermediation. His idea of Digital India and Smart City as well as Smart Village may sound nebulous. But, when completed, they are all about transforming Indian business from the old chaupal, and the gaggles of middlemen, to transparent and speedy transactions in real time. In India, Bengaluru, Hyderabad and Gurugram came up not due to any governmental thinking but because telecommunication became faster and cheaper so an opportunity arose for Indians to do offshore maintenance jobs. Modi, with his digital thrust, now wants to turn this opportunity into a bold new venture, with a programme like ‘Make in India’.  Samsung the Korean giant, is now setting up a unit in Noida near Delhi to make a line of its mobile phones. Recently, when Timothy Cook, chief of Apple, visited India and met Modi, he was clearly told that he could launch Apple Stores in India if only he used some (30%) made-in-India products. In fact, most foreign IT biggies, including Microsoft Corporation and Cisco Systems, have of late increased their manpower and investments in India. Huwaei, the Chinese telecoms major, has started a research & development centre in Bengaluru. That Modi puts his finger on the economy shows in his MUDRA scheme for financing six crore small vendors and businessmen, 61 per cent of whom are minorities, SC, ST or OBC. Maybe he could relate to their condition, being a tea seller at a railway station once.

Modi can think and dream big. He has persuaded Airbus Industries of France and the Tata Group to begin collaboration on design and manufacture of a military transport aircraft. Airbus has already begun manufacturing some of its parts in India. These are the first green shoots of high-tech industry in India, a sector in which India lags not only behind the Asian major powers like Japan, Korea and China but newcomers like Thailand and Vietnam. To facilitate entry of high technology, FDI cap on defence industries has been pushed up to 49 per cent and Indian firms like L&T, assigned to make nuclear submarines, are potential conduits for transfer of sophisticated technology.

Some of the things that outwardly appear to be Modi’s mere fads, like yoga, for that matter, are actually smart ideas to improve public health at low cost, and creating jobs. In this year so far the government of Haryana has given jobs to 25,000 persons as yoga instructors. Similarly, his Namami Ganga scheme for cleaning up North India’s arterial river, for which a budget of Rs 20,000 crore is allocated, should create a chain of municipal waste disposal projects along the river. It is a national renewal scheme on an unprecedented scale with a huge potential of creating jobs.

In his first two years, if his conduct seems somewhat puzzling, it is in his silence about the mindless outbursts of his party’s fringe elements. Their missiles are not always limited to a bigoted version of art and culture, or ancient history of their choice. Despite Modi, as it appears, Subramanian Swamy, a machinator par excellence and newly appointed BJP member of the Rajya Sabha, is firing salvos at RBI Governor Raghuram Rajan on trumped up charges. When Rajan was under attack from the finance ministry for his stubbornness and refusing to reduce interest rates, Modi had stepped in April last year saying he is a good teacher. But this time Modi has preferred to practically remain non-committal on the controversy. He may be upset with Rajan for not reducing interest rates for high growth despite low inflation. Modi cannot remain maun  like his predecessor Manmohan Singh and is nor an “accidental prime minister” either.  His has pressed the pause button in terms of launching new schemes and  fully focussed on implementing programs already launched as next coming two years are crucial for him to establish that he is not an accidental choice.

HAND IN HAND WITH RED FLAG

by Harish Gupta, National Editor, Lokmat Group

Garm Hava (Scorching Winds), M. S. Sathyu’s 1973 film was about the dilemma of a Muslim family over migrating to Pakistan post-Independence, ends with the patriarch, played by Balraj Sahni, deciding to stay back in India. As id this was not enough, he also decided to join the communist movement against the ruling Congress, amidst the slogan yeh azaadi jhooti hai (”this freedom is a sham”). Since then, and even earlier, the Congress and communists have remained at polar removes, representing not only two different ideas of India but conflicting views on everything, from property ownership to role of state and democracy. Over the decades, and particularly due to the rise of Hindutva politics under the BJP, their distance has got narrowed but the core difference persists, and so the refusal of their leaders to share power. In 1996, the CPI(M) central committee prevented its senior leader and West Bengal chief minister Jyoti Basu from being sworn in as Prime Minister, predominantly because of his top comrades’ objection to their party becoming dependent on the Congress. The composition of the lower House at that time was such that the Congress could pull the rug from under the government’s feet any time it pleased.

However, it is the recent assembly election in West Bengal, ending on May 5, that has finally bridged the gulf between the ‘hand’ (symbol  of the Congress) and the red flag of communists. How the alliance will fare is anybody’s guess, May 19 being the scheduled poll counting day. Still, it is an unusual bonding tied by pressure from the ranks, not imposed from above. Congress president Sonia Gandhi was reportedly not much in favour of the idea of a communist-dominated alliance in Bengal where her party had remained number two for decades. But Rahul Gandhi, the party’s vice president, who was not given to such niceties, readily addressed rallies in Kolkata with former CPI(M) chief minister Buddhadeb Bhattacharjee by his side, and forests of clenched fists being raised in front of him with the slogan, comrade Rahul lal salam.  It was first time after Independence that a Gandhi scion was hailed as “comrade” by a predominantly communist rally.

 Can it be the harbinger of an enduring and electorally tenable centre-left coalition in India? Why not? The Congress, despite its corruption-tainted image for a long time now, has steadfastly held on to its socialist policies, which got a marked boost in the 10 years of UPA rule due to Sonia Gandhi’s hallmark programmes, like MGNREGA and Food Security Act. But, despite its left-leaning core ideology, the Congress remained without allies as caste-based politics had come to rule the roost. In the Nineties, BJP, with its Hindutva politics, added a new dimension to it. Since then Congress has been left with no regional allies worth the name. The Congress-left alliance, if it spreads across the nation, will have the potential of an anti-elite and pro-poor coalition. It is like turning the clock of history back to where it would have rightfully belonged, in a society divided by class. And it doesn’t matter if it is divided by caste too.

    It is natural that BJP will not be pleased if the Congress-left alliance puts up a stellar performance in Bengal. But even a fairly decent tally of, say, around 100 seats (in a house of 294) will bring a new momentum and push the envelope, particularly for the Uttar Pradesh election next year. CPM general secretary Sitaram Yechury is working hard to create a nation-wide non-BJP alliance wherever feasible. Rahul Gandhi is extremely comfortable with Yechury and both agree that road to Delhi goes via Lucknow. Neither Rahul nor the Left trust Mulayam Singh Yadav anymore as he has ditched secular forces six times in the past. It is learnt that poll strategist Prashant Kishore, regarded as the architect of Modi’s election in 2014 as well as that of Nitish Kumar in Bihar last year, is insisting on the party rallying behind a “face”, be it of Rahul, or his sister Priyanka Gandhi Vadra. The advice has a lot of substance as even the elite classes, who supported Congress in the past and have now gone mostly to BJP, can respond to their old links only if a member of the party’s leading family agrees to launch his (or her) march to Delhi from Lucknow.

But the elites cannot win an election on their own. The local parties with their caste identities do not trust Congress. Nor is the party held in great trust by Muslims, who constitute 17 per cent of the population of Uttar Pradesh. The left can be a powerful adhesive to glue the regional parties and communities together to Congress. In other words, the left can function as a catalyst in the coalition-building process. It is win-win for regional parties too. Take, for example, Bihar chief minister Nitish Kumar who is working hard to get a leadership slot in UP’s anti-Modi space but hasn’t made much headway yet. A future coalition in the state spearheaded by Congress, and guaranteed by the Left, can offer at least three territorial players—Nitish’s JD(U), Lalu Prasad’s RJD and Mayawati’s BSP --an opportunity to take part in the governance of India’s largest state.

 

The 131-year-old Congress still has substantial brand value. But it has no friends. Despite Sonia Gandhi’s pro-poor programmes, it failed to forge lasting ties with the toiling masses. But the rally for “comrade Rahul” in Kolkata’s Park Circus maidan on a sizzling summer afternoon may pave the way for the party to unshackle itself at last, and win back the poor man’s trust that it has forfeited.

ACHHE DIN NOT TOO FAR

by Harish Gupta, National Editor, Lokmat Group

In May 2014, Narendra Modi, on assuming power as India's Prime Minister, seemed an epitome of strength in stark contrast to UPA in its last leg. But it took only a few months to find the Modi administration's Achilles Heel—its deficit in numbers in the 245-member Rajya Sabha. Pitted against an opposition determined to crush Modi's reputation as a human dynamo, if not his credibility, the government had to sit out as scores of its bills got stalled in the upper house. The government was crippled and the opposition thought it had won.

 However, the Congress' fencing in the Rajya Sabha is showing gaps that may soon be wide enough for Modi to ride through. Come August 1, when biennial elections fall due to 56 seats across 15 states, and seven more nominated members are replaced by 'eminent' personalities chosen by the present dispensation, the NDA/UPA difference will be greatly neutralised. But the real change lies in the growing pull of BJP among large regional players, like TMC in West Bengal, BJD in Odisha and, significantly, both SP and BSP in Uttar Pradesh.

But the number game in Rajya Sabha has only begun. In Andhra Pradesh, one has to watch if TDP gifts an assured seat to BJP minister Nirmala Sitaraman or INLD offers an olive branch in Haryana. And how many seats are gained by BJP's 'frenemies', like SP, YSR Congress and TRS is yet to be seen. And AIADMK, always a supporter of Modi except on the GST Bill, may get even closer to him if it is returned to power in the state for another term. No doubt it is Modi's skill as a player on India's vast political chequerboard that has begun to reap dividends. 

But he is lucky not only on the political front. The met department's forecast of 106 per cent of July-September "long period average" rainfall, after two years of below-average showers, has given a boost to demand which is so overwhelming that it kicked off a week-long stock market rally. Perhaps, rain Gods are also smiling at Modi after two years of drought. The Index of Industrial Production has registered a two per cent rise in February after months of contraction. Of course this rate of growth is midget sized compared to the 6 per cent that India has clocked on an average in the past ten years. But it is the first green shoot after a long drought. It synchronises with yet another happy tiding, that of the consumer price index rising only 4.8 per cent in March from over 5 per cent. Significantly, this drop in retail inflation is due to moderation in food prices, a key factor that can put more disposable income in the hands of the rural population. Besides, it signals the prospect of agriculture turning the corner at last, after a minimal growth of 1.1 per cent in 2015-16 and generally lackadaisical performance in the past. Tied to that is the destiny of half the country's population engaged in agriculture, a sector that contributes only 15 per cent to GDP.

Optimism about India under Modi is not limited to his loyalists and RSS bhakts in the country. It is shared by some of the world's largest Private Equity funds who specialise in the art of investing in businesses that has the prospect to grow in the future, often on a 10-year horizon. Carlyle, the world's second largest PE fund, in a note circulated by its director of research, has noted: "The most optimistic forecast for 2016 GDP growth in China (7%) matches the most pessimistic for India". It quotes IMF data to put India's expected returns on incremental capital (a single unit of capital newly deployed) between 2016 and 2020 at 24.7 per cent. It is twice that of the global figure and 1.7 times of the Emerging Markets. Be it power, railways, roads, airports and ports, the signposts of future growth, India has come a long way in the past two years.

Under Modi, India's politics is moving away from its traditional populist mould. Earlier, Congress was identified with its populist programmes—be it MGNREGA, PDS or doles. The real gains from them remained doubtful due to lack of strict monitoring mechanism and corruption. But Modi, the pragmatic leader, is doggedly pursuing Jan Dhan Yojana, Mudra and Aadhar, projects that bring welfare within the scope of audit. Only future can tell how much of wasteful expenditure Modi's fiscal filters are going to save. He is painted as hardhearted but that did not deter him, or his colleague, Maharashtra chief minister Devendra Fadnavis, to send wagons of drinking water to parched Latur. Modi may have failed to keep his election promise of bringing black money hoarded abroad back to the country. But his government is taking plenty of measures to raise the cost of tax evasion within the country. He is determined to regulate the sectors that shelters black money, such as property, jewellery, natural resources etc.

 He took the bold decision to allow 100% FDI in e-commerce companies thereby eliminating circulation of black money in retail and wholesale trade. He may have been opposed to some of the UPA’s schemes as Gujrat Chief Minister. But he is a fast learner. Once he realises the gains of a scheme, he doggedly pursues it. The way he is going after domestic black money and didn’t yield an inch is an indication of his well crafted strategy. He knows that he is creating an army of Modi-haters. But he had an inkling that the wheel of economy will surely turn. With RBI Governor Raghuram Rajan showering praises on him, the ACHHE DIN are not too far. Narendra Modi is not a hasty reformer. But nor was Deng Xiaobing, the maker of modern China, who said it is a good policy “to cross the river by feeling the stones”

(The author is National Editor, Lokmat group)

Rs.30L crore siphoned out of India in 10 yrs

by Harish Gupta, National Editor, Lokmat Group

Rs.30L crore siphoned out of India in 10 yrs

Black Money

￭ SIT orders DRI probe

India ranks 4th in money laundering

Harish Gupta New Delhi, Feb. 15 :

The Special Investigation Team (SIT) has directed the Directorate of Revenue Intelligence (DRI) to probe the estimated outflow of `30 lakh crore ($ 505 billion) during the 2004–2013 period. The mind-boggling figure of `30 lakh crore was given by the Global Financial Integrity panel in December 2015. The panel undertook this extensive study of Trade Based Money Laundering and released its report saying that India lost `30 lakh crore during the 10 year period when UPA was in power.

The report of the Global Financial Integrity panel and action of the SIT today came as a shot in the arm for the Modi government which had been alleging that money to the tune of billions of dollars was siphoned out of the country during the UPA regime. The Supreme Court had directed the UPA to constitute the SIT on Black Money. But it kept dithering and the Modi government agreed to form the SIT soon after coming to power.

The Global Financial Integrity panel in its various reports, observed that Trade Based Money Laundering is a major source through which illicit money is taken out of the country. India ranked fourth amongst the developing nations with China topping the chart followed by Russia and Mexico. The SIT had recommended that there should be institutional mechanism through a dedicated set up which examines mismatch between export/import data with corresponding import/export data of other countries on a regular basis.

The SIT has also recommended that wherever possible, especially in case of commodities, a system for cross checking the prices of imports/exports with international prices may be done. Various reports including those by Global Financial Integrity have emphasised that Trade Based Money Laundering is the main medium or process through which funds are illegally taken out of countries. The DRI under the ministry of finance has been asked to verify the extent to which the calculations of money laundered are correct.

The SIT has also observed that since reports like those of Global Financial Integrity which calculate illicit financial flows from various countries, are widely used in academic circles and inform the debate on this issue, it is very crucial to ascertain the veracity of such reports. The SIT, however, refrained from making any statement on the findings of the report saying "further necessary action shall be taken after receipt of report from DRI". The details of the report obtained from the international panel, have been sent to DRI last week by the SIT. 

The Global Financial Integrity, in its report, "Illicit financial flows from developing countries 2004–2013" has estimated that illicit financial flows out of ten top countries is to the tune of $5 trillion. The report says developing and emerging economies across the world lost US$7.8 trillion in illicit financial flows from 2004 through 2013, with illicit outflows increasing at an average rate of 6.5 per cent per year - nearly twice as fast as global GDP. The Global Financial Integrity panel conducted this study which was supported by the Government of Finland.

Efforts for truce with Cong begin

by Harish Gupta, National Editor, Lokmat Group

￭ Government washes hands off with Dr Swamy

￭ I-T not proceeding in the tax exemption case

Harish Gupta

New Delhi, Dec 8

The Winter Session of Parliament may not be a washout as predicted by many after a huge confrontation witnessed in Parliament in the National Herald case. 

Last ditch efforts are being made to restore calm in the Parliament session ending on December 23. Since the magistrate hearing the National Herald case has posted the matter for December 19 and the Congress leaders have decided to fight judicially and politically as well, disruptions in Parliament may not continue for long either.

All eyes are set on the massive wedding reception to be held on Wednesday for Union finance minister Arun Jaitley's daughter Sonali with Jayesh. The presence of Sonia Gandhi or Rahul Gandhi on the occasion may give a clue of melting the ice. The aggression on the part of Congress may also subside during the next couple of days as it would revert to the debate on intolerance rather than on corruption.

The government has conveyed explicitly to the Congress leadership that it has no hand whatsoever in courts in the National Herald case. In fact, senior advocates appearing for the Congress had pleaded before the high court that the case should be heard by the same judge who was hearing it earlier. The registry had changed the case from one judge to another after the festival break. The Congress plea was accepted by the court and the Congress got the same judge it wanted.

Secondly, the Income Tax department has not proceeded against the Congress party for giving ` 90 crores as interest free loan to Associate Journals Limited. The Income Tax exemption of the Congress can be withdrawn merely on the ground of diversion of funds under the existing rules. The department has been moving at a snail's pace after issuing one notice. It was stated by the government that the BCCI's tax exemption was withdrawn by the UPA government when it gave ` 25 crores for the promotion of Football to Football Association. The department said that BCCI cannot transfer funds for the promotion of football as exemptions are given only for the promotion of cricket. These exemptions have not been restored for several years. Therefore, the government has no political vendetta against the Congress party. Rather it is trying to help the Congress in the case.

It was also explained to senior leaders of the Congress by the government that Dr Subramanian Swamy may be a member of the BJP. But the current ruling establishment has nothing to do with him as he had fired salvos at the ruling party as well in the past.

Modi proposes, yoga ministry disposes

by Harish Gupta, National Editor, Lokmat Group

Special Report

• AYUSH has set a new record in non-performance in this area. 

• Rs. 203 crores was allocated to ministry, but it spent Rs. 222 crores. 

New Delhi May 31, 

Prime Minister Narendra Modi may have carved out a separate ministry of AYUSH to promote ayurveda, yoga etc. last year on May 26 when his Cabinet was sworn in. He also ensured that June 21 is observed as International Yoga Day bringing a feather in the cap to promote yoga globally. 

The Modi government launched media blitzkrieg listing its achievements during the past one year for the past 10 days. However, shocking details have surfaced about the performance of his pet ministry of AYUSH.

AYUSH has rather set a new record in non-performance during the one year of Modi government. It has not emerged that the AYUSH did not spend more than 48% of funds allocated to it during the financial year of 2014-15. Of the ` 1272 crores allocated to AYUSH during the 2014-15, the ministry returned to the finance ministry as much as ` 607 crores under the head "Amount Unutilised". 

The unspent amount of 48% which was returned is a record of sort by any ministry under the Modi dispensation. Surprisingly, it happened when Modi picked up party veteran and his trusted man Shripad Nayak to head the ministry as minister of state with independent charge. Before Modi took over, AYUSH was merely a department under the ministry of health & family welfare. Nayak is also holding the post of minister of state in the ministry of health. 

According to figures available with Lokmat reveal that AYUSH failed to utilise the entire amount of ` 607 crores meant for research and plan expenditure. But the ministry overshot its expenditure when it comes to non-plan areas during 2014-15. The ministry was allocated ` 203 crores for non-plan expenditure. But it spent ` 222 crores. However, when it comes to plan expenditure, the ministry failed to utilise as much as 48% funds.

Prime Minister Modi may be laying emphasis on innovation & research of tradition Indian systems. But the AYUSH has set a new record in non-performance in this area. If the amount sanctioned during 2014-15 for research projects was ` 224.20 crores, as much as ` 98.53 crores remained unutilised. 

When AYUSH functioned as a department under the ministry of health during the UPA regime, it was allocated ` 189 crores in 2012-13 and ` 237 crores during 2013-14. But the department utilised ` 180 crores and ` 217 crores during the two financial years.