The World has seen the most unusual happening of a total
shut down in the history of mankind and when the LOCK DOWN opens and Normal
Activity starts every country should consider it as a REBIRTH.
Every child is born with a clean slate and has to learn all
physical and mental activities. It is up to the family , environment and
school to ensure that the child gets
proper learning in life and becomes a good
human being.
If we take the Lock Down as an opportunity given by The Nature to Mankind
to start learning from scratch in life ,we should decide what is essential to learn and also what are the non-essentials in life
to unlearn . This will surely make the
world a better place to live. The world
as a whole has realized the futility of power, possessions and wealth. It has
also trashed the concept of countries fighting for being SUPER POWERS when
everyone has been forced to remain Locked Down for just survival. It has also conveyed the message that it is
the worker class who keep the world
going. It is not possible to imagine survival of millions of people without
medical services and those people engaged in providing basic needs of
food and essential utilities like water, electricity ,security and house
keeping.
For the first time the entire world has realized that the only precious thing is being alive. I
remember in a calendar a young poor girl is being asked “what would you like to be when you grow ?” and her reply was “Alive” How
true!
There are many aspects of life where all efforts are
required to be made but my focus and concern in this blog is only the desired changes in the system of our country to bring economic prosperity for
all. The task has been made easier by the present abnormal conditions as there
is a readiness to change the mindset . In India , if only the people and the
departments responsible for formulating policies and implementing them unlearn
the practices followed in the past, economic progress will come very fast.
If we go through the history of business in India since
Independence it is pathetic. Till seventies there were a few private big business houses and few public sector undertakings. All Rules and
Regulations and all government machinery like Banks were meant for these Enterprises.
When the concept of
Small Scale Sector came into existence it was converted into a License and
Quota exercise by the government and the public both. People with political
power provided Licenses for various manufacturing activities , scarce raw
material quotas were given for imports and most of the quota was
sold without any manufacturing . This
practice neither generated jobs nor improved Industries in the country.
Then a new breed of entrepreneurs arrived on the scene who
came with projects , were successful in
taking advantages of the schemes for Small Scale Sector. Most of these players
manipulated the system for taking benefits of land and finance by the financial
institutes .The loans were invested in more profitable activities like real estate and commercial
properties thus rendering this sector poor.
In India of seventies
having such business climate to even
think of entering in the field of manufacturing in the
unorganized sector of Used Oil Refining appeared to be suicidal. The genuine
entrepreneurs were struggling to survive.
The government formulated many policies for encouragement of
Small Scale Sector which remained on paper only. The Banks had no trust in
funding this sector and all the government departments of State and Centre
followed the policy of obstruction. This
illogical obstructionist attitude is beyond our comprehension. Why so much time, energy
and money is spent in formulating policies and Gazette Notifications if all
efforts are made to ensure non-implementation of those very Policies.
This question was raised umpteen times with various ministries and government
departments in many Seminars and many written and personal representations in vain.
My entrepreneurial journey of 4 decades sounds like some unbelievable story. I can cite dozens of “Believe it or not “
happenings” of my entrepreneurial life. Let me enumerate a few to illustrate
the point.
The foremost
important hard to Believe fact is survival without ever resorting to
any of the so called commercial
practices.
Believe it or not – I
received 8% of total requirement of working capital from the Bank after
commissioning the Unit though my own margin money available for working capital loan was 25% ,
which remained blocked as security with
the Bank for the non-working capital provided. The just fight for the Right to have
real Working Capital from a bank
continued for almost 25 years.
Believe it or not –For getting the due Notified Credit Linked Subsidy
of 15% from Ministry of Small &
Medium Enterprises a five year battle was required because it depends on the discretion of the
individual to give or not your due .The discretionary powers given
to various individuals in various fields is the biggest cause of failure
of many enterprises.
Believe it or not- The Excise Department discovered that
In the whole country my Unit was
amassing wealth by evading Excise Duty
therefore on a S.S.I Unit Excise Duty and 100% penalty of Rs. 5 Crore was levied and it took 5 years
for the Excise Department to realize the mistake that our product was not under Excisable goods and that by mistake we were SINGLED out from more than 400 Registered Units engaged
in similar activity and were not covered in Excise.
Believe it or not- When the Ministry of Environment
undertook the task of formulating a policy concerning Used Oil in the year 2000
and took inputs and a Draft Notification was prepared but the
two main clauses essential for the existence and development of the Used
Oil Refining sector were dropped from the Gazette Notification
rendering the whole exercise futile.
Believe it or not- A
Ministry can issue a Gazette Notification for opening a sector for private
players but will obstruct the entry of
such players. Five years back the
Ministry of Petroleum’s Gazette Notification allowing Parallel marketeer of Kerosene Oil was issued but if you believed in the scheme and went full swing to be a player , it may end
in 5 years of wasted efforts ,money and energy as has happened in our case.
But the greatest Myth in our country is the existence of
Public Grievance Departments, be it judicial system or any ministry
or government department like
Police, Taxation or any
department connected to providing any
utility services. The scope of work for
Public Grievance Cell is to register a complaint and then follow No Action
Policy. Either the complaint lies
indefinitely in the cold storage of the concerned department or some ambiguous
reply is sent and matter is closed in the Files as “Grievance Resolved”. This
is true that is why it takes years for
simple settlement of issues. There are many examples where even when the
problems had been communicated to the highest authority and the departments are
asked to take action but still the ministries and departments refuse to change
the work culture acquired during the
last several decades.
This Locked Down condition can be a boon if the necessary
essential reforms are done at a fast pace. This can be a time when the country
can convert this obstacle into opportunity.
The conditions are conducive to accept changes without
protests.
This crisis has finished for the time being the religious
fanaticism and caste discrimination .
Lines dividing the various Classes of society is reduced.
VVIP Culture is losing its relevance . Common men has
realized that powerful political people
are as vulnerable as them. I am reminded of a cartoon where the photograph of
the Russian Leader Lenin in a Dustbin is
shown receiving the photograph of the Dictator Stalin saying “I was expecting
you to join but not so soon”
If we realize that in a very short time of months the
world Economy has been ruined ,the turn around of Economy is also
possible very quickly provided the correct measures are taken.
In India if we change the attitude of putting spokes
and change Rules to remove bottle
necks from the working of Industry the
progress will be swift. The present
bureaucratic non action policy and making rules with strings attached need to
change.
The wish list of all industries will be that the present
crisis removes all hurdles created by departments.
Minimize autocracy
,maximize assistance and just discard the big chunk of obsolete Rules and
Regulations hampering the growth. Simplification of Rules is the need of the
hour but administration is still busy
making harsh Rules to Scare already distressed and scared entrepreneurs in India .What
wonderful logic at a time when
the world Economy is at the brink of economic disaster ?
There are lakhs of
industrial Units abandoned in the country . If these sick Units are given to competent enthusiastic
entrepreneurs to run with least conditions the Indian Economy will revive in no
time.
For resolving the problems of the people there should be one
Central Agency consisting of various competent OMBUDSMEN where complaints related to Infrastructure, Finance, Labour,
Tax Authorities are taken and solved in a time bound manner directly between the aggrieved entrepreneur and the concerned department.
For every misdeed , atrocity, regressive incident we are used to hearing people commenting “ This can only happen in
India” Now is the time when by swift action India can be a Super Economic Power
so that we can proudly say that India
defeated corona virus and became stronger.
We will be able to proudly proclaim “This can only happen in India”
My belief is that
with right learning and unlearning India in its REBIRTH after LOCK DOWN can be a great
economic entity.
Urmila Bhargava
9310023230
md@ifp-petro.com
www.urmilabhargava.com