Editorials With English Vocab 30/1/2016


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THE HINDU: Giving cities the smart edge

The Central government’s framework for 20 cities to become ‘smart’ over a five-year period can cover new ground if it makes intelligent use of information technology to deliver better civic services. 

Rapid and poorly regulated urbanisation has overwhelmed urban governments, rendering them incapable of providing even basic services such as clean water, sewerage, pedestrian-friendly roads, public transport, uninterrupted power, street lighting, parks and recreational spaces. So weak and uncoordinated is governance that commercial entities have wilfully violated building regulations and put up unauthorised structures — with severe impact on congestion, air quality and flood management — and governments have gladly regularised the violations later. The smart city plan now proposes to intervene and bring some order by upgrading the physical infrastructure in select enclaves, and incentivising the use of information and communication technologies. Urban Development Minister M. Venkaiah Naidu has come up with a generalised definition of a smart Indian city as one that “enables a decent life to the citizens, and green and sustainable environment, besides enabling adoption of smart solutions”, but the exercise should lead to measurable outcomes.
The first batch of smart cities would create virtually new business districts in several cities, marking a departure from the disaggregated urban development witnessed over the past few decades. This area-based development approach makes it imperative that the resulting demand for mobility to and from the ‘smart’ area be made an integral part of the plan, with an emphasis on walkability, use of non-motorised transport and access to public transport. Ahmedabad and Bhubaneswar have shown high ambition by opting for a common travel card. Others such as Indore, Davangere and Belagavi plan Intelligent Transport Solutions, something that has been unattainable for even a big metro such as Chennai. Although it enjoys high visibility, the smart city programme is merely a framework for urban development aided by the Centre with a small initial seed fund of Rs.500 crore, while additional finances have to come from public-private partnerships and local revenue. State governments, including those left out of the first list, could unlock the potential of all cities with development policies that aim at structural change. Improved public transport, for instance, has an immediate positive impact on the local economy. Technologies such as GPS to inform passengers in real time on their mobile phones, and common ticketing, increase the efficiency of transport use. Universal design in public buildings and streets would help all people, including those with disabilities. The challenge for Smart Cities 1.0 is to provide proof of concept quickly and make outcomes sustainable. Care also needs to be taken that the effect is not to create gated communities of best practices and civic upgrade in a wider landscape of urban distress. It is crucial that these urban enclaves cater to the housing, health, education and recreation needs of a wide cross section of society, and that the convergence of the Smart Cities programme with existing urban renewal projects countrywide be smooth.
edge
The outside limit of an object, area, or surface; a place or part farthest away from the center of something

o·ver·whelm
Bury or drown beneath a huge mass.

rend·er
Provide or give (a service, help, etc.

con·ges·tion
The state of being congested.

en·clave
A portion of territory within or surrounded by a larger territory whose inhabitants are culturally or ethnically distinct.

im·per·a·tive
Of vital importance; crucial.

con·ver·gence
The process or state of converging.




THE HINDU: The trouble with spectrum pricing


The Telecom Regulatory Authority of India’s latest recommendation on the reserve price for the auction of the 700 MHz wireless spectrum could be a case where the pricing of a public asset may end up having the exact opposite effect: making a scarce resource so expensive that its meaningful utilisation is compromised, and thus rendered unavailable to serve the larger public good. That the telecom regulator, which has been in the vanguard of trying to spur both government and industry to become more responsive to the larger public interest, should have opted to set such a high valuation benchmark is a touch ironic. About 14 months ago, TRAI had, in a missive to the Department of Telecommunications, spelt out the rationale behind its recommendations on valuation and reserve price of spectrum. While the specific backdrop of that particular communication was the likelihood of the government opting to hold a supply-constrained auction, the broader arguments it made then remain as germane. The regulator had pointed out that a very high per unit price realisation, while possibly helping meet immediate fiscal needs, would only bleed the industry of resources. The high price of spectrum would also affect private investment in network expansion and infrastructure. The financial viability of the industry, TRAI posited, was crucial both for its own health and for the government to earn recurring revenues. All these issues are still relevant, as underscored partly by Bharti Airtel’s recent results. The company has reported its first quarterly profit decline in two years, largely on account of higher spectrum amortisation expenses.
It is no one’s contention that the telecom regulator had not approached the task at hand with full transparency and openness in its quest to arrive at meaningful valuations for seven frequency bands. A consultation paper that sought comments from all stakeholders was followed by an open house discussion. TRAI spelt out the points made by varied participants, including many from the industry who argued against an auction of the 700 MHz airwaves at a time when the network and device ecosystem is not sufficiently developed. Still, considering the performance efficiency of the particular spectrum band and its utility in improving and expanding high-speed wireless broadband services across rural areas, the regulator recommended that the government put on the block the available frequencies in this spectrum at the next auction. It is in plumping for its own April 2012 formulation of four times the reserve price of the 1800 MHz spectrum that TRAI appears to have made a less-than-appropriate choice. This is particularly so as spectrum sharing and trading have been operationalised in the intervening period, boosting overall supply. The regulator’s recommendation, for almost Rs.11,500 crore per MHz, if accepted, holds risks for an industry that serves a crucial socio-economic objective
van·guard
A group of people leading the way in new developments or ideas.

spur
A device with a small spike or a spiked wheel that is worn on a rider's heel and used for urging a horse forward.


ger·mane
Relevant to a subject under consideration.


pos·it
Assume as a fact; put forward as a basis of argument.

        amortisation
Amortization: the reduction of the value of an asset by prorating its cost over a period of years

quest
A long or arduous search for something.

plump
Set down heavily or unceremoniously.





BUSINESS STANDARD: Pulse production needs to be ramped up



Pulses, India’s most consumed protein-rich food group, have continued to pressure food inflation upwards even as the prices of most other items have cooled off. The average annual wholesale price inflation (WPI) in pulses in the last 10 years is estimated at 9.4 per cent, well above the overall WPI inflation of 6.3 per cent during this period. The reasons for this are many. The most significant among them is the neglect of pulses vis-à-vis staple cereals like wheat and rice. Developmental strategies have focused primarily on boosting the output of these cereals, notwithstanding the fact that pulses are an integral accompaniment to rice and wheat in the Indian diet. As a result, the cultivation of pulses has been pushed to more and more marginal and unirrigated lands with low fertility. Hardly 15 per cent of the total pulses acreage is irrigated. Numerous high-yielding and quicker-maturing varieties of pulses are now available which can easily fit into multiple cropping cycles commonly followed in irrigated tracts. The inclusion of pulses in such intensive farming systems is imperative also to cash in on their ability to tap nitrogen from air and fix it into the soil for use by subsequent crops. But little has been done to ensure that these seeds and their production technologies reach the farmers.

Besides, the minimum support prices (MSPs) of pulses, which are routinely increased every year, do not benefit the pulses growers for want of their enforcement through market intervention—in other words, through procurement. The government’s import and export policies for pulses, too, are most often aimed at taming domestic prices to protect consumer interests, disregarding those of the producers. Little wonder, therefore, that the production of pulses does not respond to high prices or growing demand. Normally, at times of subnormal monsoon rainfall, the area under crops that require less water should expand. But this is not the case with pulses, though these are also efficient water-users. Pulses acreage has remained static at around 13 million hectares in the last as well as the current year, despite poor rains. Predictably, therefore, output is also expected to stagnate at around 17 million tonnes (mt) while the projected demand has surged from last year’s 22.6 mt to 23.6 mt. The need for imports of pulses has, thus, soared to well above five mt—not easy to meet, given limited availability of pulses in the international market. The government agencies, which have been asked to import pulses, are also finding it difficult to source enough supplies from abroad. Private trade has turned wary of large imports, fearing that the government may confiscate their stocks.

The only way to resolve the lingering pulses crisis is to boost domestic output. For this, the farmers need to be assured of remunerative prices. They also need financial assistance to buy new seeds, fertilisers and plant protection chemicals, which are essential to increase crop yields. The incentives being offered to farmers to dig rainwater harvesting ponds in their fields under the Pradhan Mantri Sinchayee Yojana need to be channelled to pulse growers. If these and other measures and strategies that worked well in wheat and rice are applied to pulses, there is no reason why India can’t be self-sufficient in pulses as well.
not·with·stand·ing
In spite of.

a·cre·age
An area of land, typically when used for agricultural purposes, but not necessarily measured in acres.


im·per·a·tive
Of vital importance; crucial.

pro·cure·ment
The action of obtaining or procuring something.

tame
Domesticate (an animal).

war·y
Feeling or showing caution about possible dangers or problems.

con·fis·cate
Take or seize (someone's property) with authority.

lin·ger·ing
Lasting for a long time or slow to end.





INDIAN EXPRESS: Less taxing

At the launch of the Start-Up India campaign, Finance Minister Arun Jaitley had held out the promise of a friendly tax regime, especially for start-ups. It is a commitment this government made after being voted into office, in the context of widespread criticism of the retrospective taxation measures introduced in the second half of the UPA’s tenure. Now, the government has the first report of an expert committee headed by Justice R.V. Easwar, mandated to help bring more predictability in tax laws and to simplify tax laws. The committee has recommended raising the threshold for Tax Deducted at Source (TDS) and reduction of TDS rates from 10 per cent to 5 per cent for individuals and Hindu Undivided Families, amending the capital gains tax laws to provide relief to retail investors who get caught in demands made by taxmen and simplification of the distinction between capital gains and business income, changes in law to avoid delay in the issue of tax refunds, a presumptive income scheme for professionals as part of the move to ensure ease of business, and encouragement of electronic filing and measures to reduce the compliance burden.

Much of these appear to be aimed at mitigating the concerns of smaller taxpayers and the growing band of professionals — a constituency the government appears keen to tap. With close to 65 per cent of personal income tax collections accounted through TDS, any move to make it more taxpayer-friendly ought to be welcomed. Similarly, given the long history of litigation between the income tax department and taxpayers on whether investment in shares or securities is business income or investment income, the latest recommendation on a threshold of Rs 5 lakh makes sense. But that may not necessarily be the case with the suggestion to kick off a presumptive scheme for professionals — if only because of past experience with such schemes, especially for small businessmen.

It may not be easy to escape the impression that the suggested changes merely tinker at the margins. The challenge for the government is to put on a friendly face for taxpayers and ensure certainty without an erosion in what is already a low tax base. For an economy of India’s size, its tax to GDP ratio is still a tad over 10 per cent with just a shade over four crore taxpayers. What will help is the outlining of a clear roadmap on taxation — just as in the case of lowering of corporate taxes over the next four years, better analysis of tax data by the department to widen the net and, more importantly, making sure the Goods and Services Tax (GST) kicks in.

ret·ro·spec·tive
Looking back on or dealing with past events or situations.

a·mend
Make minor changes in (a text) in order to make it fairer, more accurate, or more up-to-date.

pre·sump·tive
Of the nature of a presumption; presumed in the absence of further information.

lit·i·ga·tion
The process of taking legal action.

pre·sump·tive
Of the nature of a presumption; presumed in the absence of further information.

e·ro·sion
The process of eroding or being eroded by wind, water, or other natural agents.

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