UID & PDS – Will wipe out each other’s value proposition

I have been seeing that there is a lot of Hype & Hoopla around the fact that UID will weed out corruption , and that the poor will get their share of monthly grain & Kerosene quota

Let’s examine some hard facts :

PDS system runs on corruption , systemic loot and  injustice to the needy card holders. Else, why will a person take a ration shop and run it for distributing sub-standard grains to the poor with so low a margin!!

The margins are barely anything to even recover the rents & other incidental costs !! It is like the fuel stations around the country, the margin of  Rs.1.22 per litre of petrol and .64 Rupee on a litre of diesel is barely anything to cover the bribes to inspection authorities , rents and salaries ( few fuel pumps could be an exemption !! ). But most of the fuel stations run on ‘Adulteration’ & ‘Lesser quantities’ dispensed per every litre of fuel.

So UID has a value proposition which will make the business of PDS ( Ration shops ) business unviable for its licensees.  So while the poor will have UID card , but no shops to dispense the ration !! I am not mentioning about electricity in rural India etc.etc…for reading the UID card and other related issues w.r.t implementation

Also , UID on paper is very good. Believe me,  that about 300 million people in India still think that Indira Gandhi is the Prime Minister of the country !! The reason i write this is, because , parts of our country still live in 1847 ( grossly neglected ), parts live in 1947 ( plans on paper ) and about 300 Million live in 2000 ( have had an impact of ‘time bound’ growth ).

For people who don’t have shelter to sleep , clothes to wear , where will they keep the UID Card ? What will they understand of UID when they cannot even read and write , & when they know that ‘Government establishment’ is meant for either the people in government service or the corrupt !! One must study the ‘High tech’ ideas before taking it to the people who barely have 5-6 meals per week !! Remember , 7000 children die every day due to malnutrition in India

We must also understand that corruption never started because of lack of technology , but because of wrong leadership at the top,  absence of a feedback mechanism & corrupt machinery at all levels, that has never taken action . So i believe that, the powerful people in the rural India will mislead the poor and keep their UID cards or the poor will spoil them due to mishandling of the cards . Also , UID does not have the techniques to turn stock hoarders and swindlers into honest PDS contractors !! Either the rot will continue after the UID or will wipe out the PDS shops by making them non-lucrative businesses .

Time to address the real issues. UID is a good idea , whose time is yet to come !!

Rajendra Pratap Gupta

Email : office@rajendragupta.in

Wrong Economic priorities ,lop sided growth & flawed statistics

This is the follow up blog on my views dated 15th June 2010 & 27th June 2010 on the topic of “High GDP but low GDP per capita”.
Focussing on statistics , in April-May 2010, IIP witnessed a decent growth of 14 % but this did not cover some vital sectors . Only one sector , machinery and equipment , alone contributed 37 % to this high growth.  Transport equipment , metal products and mining contributed another 32 % to IIP growth. This implies that around 70 % growth of IIP was a result of high growth in just 4 out of a total of 19 sectors . Also , that these growth rates have an important factor ‘Low base effect’ . Like manufacturing sector achieved one of the highest growth rates of 19.4 % in April 2010 over a low base of 0.4 % in 2009. Similarly,  Capital goods sector’s high growth of 72.8% in April 2010 was over  a negative base of 6 % in 2009.
Time to balance out. Else , we will blame Greece, Italy , Europe , China , poor rainfall etc. Etc. for all our ills, forgetting that we never looked at “REAL India” for growth
Get the priorities right and actions STRAIGHT
BJP must be focussed more on right issues than routine struggles !!
Rajendra Pratap Gupta
Email : office@rajendragupta.in