PM had 'lucky 9-months' but no improvement on ease of doing business: Parekh

February 18, 2015

Mumbai, Feb 18: Pitching for relaxing "administrative controls" to improve ease of doing business, top industry leader Deepak Parekh has said that impatience has begun creeping in among businessmen as nothing has changed on ground in first nine months of the Narendra Modi government.parekh

He said the industry is still optimistic about the changes it expects from the Modi government, but optimism is not translating into revenues and there has been little improvement on 'ease of doing business' front so far.

Parekh, who is known as a guiding voice of the Indian industry and has been on a number of key government panels on various policy and reform matters, further said that 'Make in India' can't succeed unless it is made easier for people to do business here and the decisions are fast-tracked.

"I think there is still a lot of optimism among the people of the country and among the industrialists and entrepreneurs that the Modi government will be good for business, for progress, for reducing corruption. They think this government means business on all these fronts.

"However, after nine months, there is a little bit of impatience creeping in as to why no changes are happening and why this is taking so long having effect on the ground.

"The optimism is there but it is not translating into revenues. Any industry you see, when there is a lot of optimism, the growth should be faster," Parekh told PTI in an interview.

Parekh, an eminent banker and Chairman of financial services giant HDFC, has always been very vocal with his views on reform and policy measures taken by the various governments over the past three decades.

He was among the first industry leaders to openly criticise the previous UPA Government for "policy paralysis" after a spate of scams led to decisions getting delayed within the government and business began getting hurt.

"The thing is that our Prime Minister had a lucky period in these nine months. The world commodity prices are at all-time low which help India the most," Parekh said.

Stating that India is again at a position when everyone is looking at it with high hopes, he said, "I don't see ease of doing business changing so far."

Parekh cited the example of delay faced by his own group's HDFC Bank, the country's top private sector lender, with regard to approvals required for raising of funds, including from overseas.

"Things are happening at such a speed around the world, we need to move faster as well.

"Just to give you an example of our own case. We needed to raise some capital in HDFC Bank. It took more time this time than earlier years to get approvals from FIPB etc," Parekh said.

On benefits from oil prices, he said there are many countries that import oil but benefits have been huge for India.

Japan is also one of the countries that imports oil. But it does not make any difference to Japan with the reserves of oil they have, whether oil is at USD 50 or USD 40 or even USD 110. Also, they are willing to pay higher price because they can afford it, but we can't.

"We have fiscal deficit and shortage of foreign exchange. These factors, when the government came into power, this was not there on the cards. No one had ever anticipated this (fall in oil prices).

Just like none of the 7-8 opinion polls predicted 67-3 in Delhi, no one predicted among the oil analysts at the big firms that the oil will become USD 55. No one predicted this," he said while emphasising that the first nine months of the Modi government has been extremely lucky for it.

Elaborating on HDFC Bank's example with regard to 'ease of doing business', Parekh said, "It got FIPB approvals. Then FIPB minutes had to be signed, and then it had to go to the Cabinet Committee on Economic Affairs.

"People were helpful but processes have not changed. Now we are a 20-year-old organisation and we are within the limits (of 74 per cent foreign investment cap). Why can't they change these things. Why can't the administrative controls be relaxed.

"If 49 per cent in defence is permitted and if someone wants to put in Rs 1,300 crore, why should this go to the Cabinet Committee. The FIPB is good enough and it is within the 49 per cent. So, you have to remove controls. You have to make it easier for people like us to do business."

He said the final approval letter came on the last day, after which the issue of Rs 10,000 crore had to be postponed as there were other listing deadlines of Indian and the US stock markets to be met.

"It is very difficult. And it is only administrative and what does it achieve? If it is within the limits, why should it go to Cabinet Committee on Economic Affairs. Why spend the Prime Minister's time on such things as he chairs the CCEA.

"If it is a controversial issue, something on security or on defence or some other very important issue, then it can, but not for simple commercial transactions. Someone must take the initiative to remove this," he said.

Parekh said that this committee has been there for the last 35 years that he has been in the industry.

"When I started working 35 years, it was Rs 200 crore, now it has gone up to Rs 1,200 crore (foreign investment limit beyond which the case is referred by FIPB to CCEA), but it has not been scrapped."

Suggesting that this revised limit was also very low, Parekh wondered, "Why is it Rs 1,200 crore, make it Rs 5,000 crore. Besides, if it (the investment proposal) meets the guidelines of FIPB, which is chaired by the Finance Secretary and the Finance Minister is always aware of FIPB cases, it should be good enough."

He also said that a lot of work needs to be done at state levels too on ease of doing business, as things have not changed there either on approvals to start construction of a business etc.

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News Network
February 29,2020

Kochi, Feb 29: When Major Abdul Rahim, a soldier in the Afghan army, died in a bomb blast in Kabul on February 19, a tear was shed for him in far away Ernakulam district of Kerala.

The major had received a transplant of hands from Eloor native T G Joseph back in 2015, and the latter’s family had grown attached to the Afghan soldier.

Maj. Abdul Rahim, a bomb disposal expert, had lost his hands in an explosion in 2012. For three years thereafter, he struggled with his handicap. Then, when 54-year-old Joseph passed away in a road accident, it was decided to give his hands to the Afghan major.

The transplant procedure was successfully performed by a team of doctors led by Dr. Subrahmania Iyer at the Amrita Institute of Medical Sciences in Kochi.

After the transplant and an intensive spell of physiotherapy, Abdul Rahim could regain a considerable part of his hands’ functions. He rejoined the army and returned to defuse bombs in his war-torn country.

In gratitude, Major Abdul Rahim would visit Kochi every year to meet Joseph’s family. 

“We were shocked to hear of the demise of Major Abdul Rahim. Though Joseph left us, a part of him lived on. Abdul Rahim was a living memorial for us. Whenever he came to the Amrita institute for a consultation, we used to visit him,” Joseph’s wife was quoted as saying by Mathrubhoomi daily.

Major Abdul Rahim struck up a good friendship with his predecessor, in a way of speaking: the first person to have had a successful hand transplant at the Amrita Institute of Medical Sciences. T R Manu became a close friend of the Afghan solider and kept regularly in touch.

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News Network
June 25,2020

India has jumped past 4.5 lakh coronavirus cases and 14,476 people have succumbed to the viral infection so far. In this backdrop, speaking to IANS in an exclusive interview, AIIMS Director Randeep Guleria said India is also vulnerable to second wave of coronavirus and people should continue to follow social distancing, wearing mask and other precautions, after cases begin to decline.

He added that in order to contain the outbreak of Covid-19, a limited lockdown in hotspots, where volume of cases is very high, may be considered along with a micro-plan to prevent leakage of cases from these areas to other non-containment areas. Excerpts of the interview are below:

Q: Reports say China and South Korea are witnessing a second wave of coronavirus infection, what is this second wave, is India also vulnerable to this?

A: When cases come down significantly, people tend to drop their guard against the viral infection, and this leads to the second wave (which means a sudden increase in the number of cases). After cases begin to decline, people should continue to follow the precautions -- continue to maintain social distancing and wear masks regularly. See what happened in Singapore, it was struck by a second wave of coronavirus. Look, what happened in the 1918 pandemic, people dropped their guard and the second wave of viral infection struck back. If people do not follow social distancing then the spike in cases is apparent. We need to take these precautions at least for one year. India is also vulnerable to this second wave.

Q: If Covid-19 cases continue to rise rapidly, do you think we need another lockdown in areas where volume of cases are very high?

A: A large volume of cases is concentrated in specific areas like hotspots, and in order to maintain things in order, we may need a limited lockdown in these areas. This should be followed by a micro-plan which entails extensive testing of people and also extensive contact tracing of people who have got in touch with positive people. Need to ensure there is no leakage of cases from these areas. People from these areas should not mix with others in non-containment areas. This will aid in containing the outbreak of the virus. People who have developed symptoms should get themselves tested, especially in the containment areas.

Q: With more than 4.5 lakh cases and close to 14,500 deaths, do you think India has reached its peak and a decline in cases is prominent?

A: The cases will continue to increase for some time. The doubling time of cases has also increased. But, the cases will also begin to flatten. Though, it is difficult to give an exact time period in this viral infection, it seems, the growth in cases will flatten in the end of July or beginning of August. A decline will come to this viral infection, but it does not mean that people should drop their guard. As a measure, we need to decrease community participation and citizens should continue to follow social distancing. People should get themselves tested. All these efforts will help in preventing people from contracting this virus. These precautions will also prevent us from the second wave, and we must continue to take precautions. The virus has not gone away, it is still lurking.

Q: India has crossed the 4.5 lakh coronavirus cases so far, although our recovery rate is good, but still 10,000 to 15,000 cases are reported daily. Why do cases continue to spiral, what is the reason?

A: We have to remember a few things -- the bulk of cases are in 10 cities, nearly 70 per cent, and if we take into account cases per million population, the number is not very high, as compared with countries including countries in Europe. Many European countries put together still do not add up to the Indian population. Do not compare India to countries like Italy, Spain etc. We need to focus on hotspots, which contribute to between 70 -80 per cent of cases, and we have to identify cases in these areas at an early stage. The population density is very high in these cities. People in lower socio-economic status are highly vulnerable to the viral infection, as many live together in small spaces and there is a lot of mixing of people happening there. Look at the market places, people are not following social distancing and not wearing masks. In fact, many are in close vicinity of each other.

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News Network
May 19,2020

New Delhi, May 19: Spitting at workplace will be punishable with fine, the Personnel Ministry has said, citing the national directives for COVID-19 management.

In an order issued to all central government departments, it has asked their heads to ensure strict compliance of this and other directives in this regard.

This order is likely to bring about changes in and around government and private work places, where one can easily spot stains of 'pan' and 'gutka' spitted at some of the corners of walls or areas not frequented by many employees/public.

"Spitting in public and work places shall be punishable with fine, as may be prescribed in accordance with its laws, rules and regulations by the state/union territory local authority," said the national directives issued by the Home Ministry and shared by the Personnel Ministry with all central government departments.

It said wearing 'face cover' is compulsory in all public and work places.

In additional directives for the work places, the ministry said as far as possible, the practice from work from home should be followed.

"Staggering of work/business hours shall be followed in offices, work places, shops, markets and industrial and commercial establishments. Provision for thermal scanning, hand wash and sanitiser will be made at all entry and exit points and common areas," the directives said.

Frequent sanitization of the entire workplace, common facilities and all points which come into human contact e.g. door handles etc., shall be ensured, including between shifts, it said.

"All persons in charge of work places shall ensure social distancing through adequate distance between workers, adequate gaps between shifts, staggering the lunch breaks of staff, etc," the directive said.

The Centre on Monday asked 50 per cent of its junior employees, below the level of deputy secretary, to join work in office.

Till now, only 33 per cent of such employees were asked to attend office due to the novel coronavirus lockdown.

Central government employees were asked to work from home due to the lockdown that came into force from March 25.

All officers of the level of deputy secretary and above have already been asked to attend office on all working days.

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