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Coal Strike Call-off Rings in Several Bitter Truths for all
- Published on 15 January 2015
Image Courtesy: The Singareni Collieries
The abrupt abortion of the coal strike has virtually drawn curtains over the 15-years stand-off between the trade unions and the Government over allowing private sector to mine coal for sale in the open market.
The strike call-off served as the face-saver both for the unions and the Government. Face-saver for the NDA Government because it neither made any sincere effort to avert strike nor declared it illegal.
NDA’s approach towards the coal strike threat in 2015 is substantially different from the one it adopted in 2002 when it was also in the power.
An analysis of the strike threats during the two periods would show how NDA Governments reacted in contrasting ways in 2002 and 2015, thereby raising issues about its self-certification for smart governance.
The withdrawal of agitation under the garb of an agreement dated 7th January 2015 served as a face-saver for the unions. If the strike would have run its full course, it might have proved to be an attempt to derail SC-mandated coal reforms.
In any case, the public is in no mood to support ideological agitation that results in economic and social hardships. The trade unions knew that they would not be able to withstand the Government crackdown if the strike had led to power outages and load-shedding.
The call-off of the five-day strike mid-way offers important lessons for all stakeholders –the Executive, the Legislature, the Judiciary and the trade unions.
A tale of Depreciation Reforms in the World’s two Largest Democracies
- Published on 10 January 2015
Edited Image courtesy: incometaxindia.gov.in
Both the corporate lobbyists and reformists across the world are always willing to lock horns over the depreciation of assets under the income tax law.
This is because depreciation has gradually emerged as multi-facet window for tax incentives, overshadowing its primary function as a method for phased deduction of the cost of assets from annual pre-tax income over a period. The stakes are thus high both for the companies and the income tax department (ITD) in any country.
This aspect came to the fore in 2014 that witnessed intense debate in the United States over the bonus depreciation. It allows businesses to make 50 deduction of investment on purchase of specified assets in the first year of purchase from their pre-tax income. This provision was revived in 2008 for limited period to reverse economic downturn.
Certain entities fiercely opposed its extension and others pitched not only for its retrospective extension but also for regularisation as a permanent feature of the Internal Revenue Code (IRC) of 1986.
The Christmas-eve saw President Obama extending the bonus depreciation by one year, which resembles a compromise of sorts between two conflicting opinions. He did this by signing the Tax Increase Prevention Act 2014 on 19th December.
Bonus depreciation is an attractive sop for companies if one goes by a case study done by Genpact, a global leader in Business Process and Technology Management.
Mr. Modi, Tweets & Twirls don’t add up to Good Governance
- Published on 02 January 2015
Image courtesy narendramodi.in
NDA's Drones, Naptha-Based urea & green approvals mess reflect ABCD
The Prime Minister Narendra Modi is emerging as an undisputed king of lingo twirl. He once again exhibited his spinning skill while articulating his vision for reforms at the National Workshop on Manufacturing that was organized by FICCI on 29th December.
Mr. Modi said he intended to change the “ABCD” culture of Government that he described as “Avoid. Bypass. Confuse. Delay.” He intends to alter it to the ROAD to success – “Responsibility. Ownership. Accountability. Discipline.”
He also chanted “Citizen-First” mantra on 25th December, which was celebrated as Good Governance Day. In his message to the nation on the occasion, he said: “Our government is committed to providing a transparent and accountable administration which works for the betterment and welfare of the common citizen.”
No one should doubt Mr. Modi’s good intentions. Time has, however, now come for every citizen to ask whether he can transform his wishes into horses without rocking the indifferent Indian system.
Mrs. Smriti Irani, Please Think Before Launching ‘Think in India’
- Published on 20 December 2014
Image Courtesy: taxindiaonline.com
We are passing through an unprecedented phase of slogan mongering. Hardly a day passes when some dream merchant spins a new phrase. It does not matter even if the initiative turns out be an old wine in the new bottle. Or, it proves to be much ado about nothing.
Take the case of the Minister for Human Resource Development Smriti Zubin Irani. She has lately thought loud about a proposed initiative named ‘Think in India’. It is being conceived to retain human talent within in the country. It would apparently also serve as a platform to beckon overseas Indian professionals to serve their homeland.
The other day a daily quoted Mrs. Irani as saying: “We all know the Prime Minister has spoken about the ‘Make in India’ project and we in the Ministry of Human Resource Development want to complement it by a ‘Think in India’ campaign through the ‘Rashtriya Avishkaar Yojana’.”
Her Ministry intends to encourage students to come up with innovations and new ideas. As put by Mrs. Irani, “So that our faculty and our students need not leave our shores in hunt for money to back their research with.”
Before embarking on Think in India and the proposed new education policy, Mrs. Irani would have to herself first think a lot. She or rather Modi Cabinet has to ponder how to sort out contradictions between RSS-inspired insular policies and the ones that can help India turn its unsustainable population load into demographic dividend.