Presidential Reference on Allocation of Natural Resources

Presidential Reference on Allocation of Natural Resources

Presidential Reference on Allocation of Natural Resources

- Inventor’s Response

June07, 2012

Honorable Chief Justice of India,

Supreme Court of India

And Prime Minister of India,

Dr. Manmohan Singh

New Delhi 110011

‘Efficient & Economical Development & Equitable Sharing Of Natural Resources Is Key To Our Prosperity - India Is Failing In This. Companies Are To Develop Not Own Natural Resources.’

Petitioner: Petitioner is a WIPO awarded inventor who had invented and offered ‘Inventions’ to most of Reputed Indian Companies, Owns a Farm, Vigorously Campaigns for Inventors Issues, Development Issues, Related to Mining, Farmers, Water, Energy, Transport etc therefore ‘Best Placed’ to Respond To Presidential Reference.

Executive Summary & Test Case of Company A: -

(Company A is Selected as it is Biggest Holder of Natural Resources)

1. There Was Control on Allocation of Natural Resources and Projects by Director General of Technical Development upto Around 1990. DGTD also indirectly functioned as Technology, Environment and Finance Controller but since NDA government took over in 1998 every Institutional Check was ‘Dismantled’ and Natural Resources Were Allocated Ignoring 1. Capability 2. Resources, 3. Requirement, 4. Shareholding, 5. Security, and 6. Greater Public Interest. Selection and Allocation procedures were ‘Secret’ and there were no ‘Public Disclosures’. Thus companies who had acquired ‘National Resources’ don’t even Disclose The Utilization of Resources to the Public Who Is 1. Owner Of Natural Resources, 2. Consumer of Natural Resources and 3. through banks Financier of Natural Resources. Supreme Court has held ‘Natural Resources Belongs To State/People – Companies are Just Developers.’

2. GOI in its wisdom Created Specialized Companies – ONGC for Oil & Gas Exploration, Indian Oil for petroleum refining, Petro-Chemicals Limited for plastics, Zinc Corporation for non ferrous, BALCO for Almunium, SAIL for steel making, Electricity Boards for power Distribution, NTPC for Power Generation, Coal India Limited for Coal Mining, Indian Railways for Rail Transportation, National Hydro Power Corporation, BBMB, Nathpa Jhakri Power Limited for Hydro Power, BSNL & MTNL for Telecom, Doordarshan for TV Broadcast, AIR for Radio Broadcast, Maruti Udyog for Automobile, Air India, Indian Airlines for air transport, Power Grid Corporation for electricity distribution, GAIL for gas distribution etc. GOI in its wisdom also promoted Cooperatives Like AMUL.

3. GOI in its wisdom limited the Shareholding of promoters of large Indian Companies to around 10% and Taxes were high like in EU, Japan or USA where Company Ownership is Widely Distributed for Greater Public Good, Income Generated by Companies is deployed for Public Welfare like Social Security, Subsiding Unviable Agriculture, Health, Education, and Defense. India is MISSING all this. Cheaply acquired National Resources are like Personal Assets of Company Promoters.

4.  Honorable Supreme Court Question On AUCTION: - When Indian Companies Have No Technical Capability Of Their Own - India Ought to Have Implemented Allocation of Natural Resources At Fix Price For Best Technical Bid. India is a poor Country, Speculative Auction of Natural Resources Would Result in Substandard Technology, Quality and Service at High Price to Consumers and Enrich Developers.

In Public Interest India Should Fix Reasonable Price For Natural Resources and then ‘Invite Bids for Technical Offers for Fast, Economical, Latest Technology Implementation along with considerations of Ownership of Indian Shareholders, R&D Capability and Patent Holdings, Employment, Service Quality of Developer Companies.’

Ø      For Example: A Company that has Demonstrable Capability to Serve say 100 million subscribers Per 4 Mhz Spectrum, to get preference over less efficient. Prefer Oil & Gas Developer who has skills to recover 90% of in place Oil & Gas Reserves Than some Company Who many not recover even 20%.

5. Since 1998 Company A was allowed to Raise Equity to 50% or more – expelling retail investors, it acquired following Natural Resources by Excluding Public who were real owners of resources, real Consumers of resources and real Financiers of the resources – there was no Promise of Quality Service, no Promise of Reasonable Service Charges for Cheaply Acquired Natural Resources and there was no Promise of Deployment of Profits for Public Welfare. Inheritance laws in India means for Centuries Promoter’s Sons and Great-Great Sons shall Inherit and Hoard on $10Trillion Worth cheaply acquired Natural Resources in India and abroad.

6. Company A was allotted Offshore 25 Blocks when even today it does not even Own and Operate a Drilling Rig, Transocean Operates Two Most Expensive Rigs for RIL, When 50 Are Required, has Commercialized just about 100 sq.km of 2,70,000 sq.km area in 13 years, WLL, 2G licenses, CDMA, GSM, Fixed Lines, 3G, 4G, DTH, Media, Optic Fiber, Internet, Broadband, IPTV, Towers, Petroleum Refinery, Petro-chemicals, Petroleum Pipelines, Coal Mines, Power Generation, 35,000 Hectare SEZs, Infrastructure, Real Estate,  Transmission, Trading, Distribution of Power and Non Natural Resources Textiles, Retail, Insurance, Brooking, Entertainment, Health and Cricket.

7.  Company A has not Created Any Intellectual Property, Didn’t Train Professionals – Poach Them From PSUs, Imports Foreign Plants, Mostly from China, engages most of the Staff On Contract Basis, Avoiding Market Wages and Provident Fund Contributions, today reported to have $13.5b Cash, actual in Indian and Foreign Accounts could be $100b. Company A Was Caught Many times Inflating Cost of Purchase, Cheating and Theft of Power & International Telecom Calls, Fast Energy Meters, Fabricated Theft Cases. 

8. None of Company A products was Cheaper and Competitive. VIMAL cloth for trouser was retailed for Rs.300 per meter whereas Ex Factory Cost in Annual Reports was Rs.30 per meter. In Spite of Vertical Integration RIL Petroleum was Costlier, Electricity and Telecom Services are Costlier in Spite of Chinese Equipment, Gas Exploration Cost Is Highest In The World In Spite of Biggest Gas Reserves at Single Place.

9.  Even as Company A has $13.5b and much more Cash but it is not promoting ‘ENTREPRENEURSHIP.’ Why Can’t Company A promote Young Professionals – Over 5 Million Graduating Indians Every Year? Entrepreneurs May Collaborate and Let It Have 30% Equity Plus 15% Interest on Loans.

BROAD CONCLUSIONS: -

ü      There is Wide Spread Loot of Natural Resources.

ü      Natural Resources are Most Inefficiently Utilized.

ü      3G was Auctioned in 2000 in UK, Yet To Be Commercialized in India.

ü      There is Large Scale Hoarding of Natural Resources.

ü      Vertical and Horizontal Integration Selectively Is Vertical & Horizontal Cartelization, Sub Contracting.

ü      There is big Gulf Between Super Size Natural Resource Holders and Companies Actually Working The Natural Resources.

ü      Profits and Wealth Creation is Not Shared With People, the Real Owners.

ü      There is Low Technical Progress, India is Dependent on Foreign Technologies, Plant and Machineries.

ü      There is practically no R&D and Patenting Hence Indefinite Dependence on Foreign Technologies & Equipments.

ü      There is Little Skill Development When Companies Hire Staff on Short Contract Basis.

ü      Indian Companies are Not Capable of Operating Power, Telecom, Oil & Gas, Mining in Developed Countries and are not much successful in Third World Countries also.

ü      Indian Companies Can’t Develop Technologies for 98% of World Market beyond India boundaries.

Why Irregularities In Allocation of Natural Resources?

[Multiple Hurdles For Indian Inventors – Free Run For Corporate]

This Petitioner Has Been Campaigning For ‘Fast Grant of Patents & Quick Grant of Utility Patents’ for Three Decades – But In Stead There Are Pre-Grant Opposition, Post Grant Opposition, Patent Tribunal, High Court & Supreme Court to take away ‘My Intellectual Property’ Procedures Maliciously Introduced by The Ones Not Capable of Inventing, mostly Non Competitors NGOs.

My argument is simple – ‘There Are Over 5 Million Patents Effective Worldwide, Many More Expired - Only 45,000 Effective In India, Then Why Has GOI Created So Many Hurdles In Creating New Technologies That Indians Can Market Worldwide, Anyone Interested Could Download Freely Available Technologies Then Delaying and Denying Legitimate Patents to Indian Inventors By Non Competitor NGO At Several Levels.’

GOI is Not Serious in Removing Unnecessary Hurdles in Denying Legitimate Patents – Delaying Grants Of Patents By 5-10 Years.

 ‘There Are No Checks in Allocating Natural Resources.’

i.)  There is No Check on Technical Qualifications, Experience, and Source of Finance.

ii.)  There is No Limit on Promoter Ownership When Promoters Have Little to Show Other Than Money that too Borrowed From Other Companies or Even Foreign Sources.

Iii)  There is No Check or Limit on Number of Blocks or Quantity of Natural Resource Allocation to a Company.

iv.)  There is No Time Frame Specified for Development of Resources and to Restore Sites to Natural Pollution Free Environment..

v.)  There is No Policy To Rescind Non Working Natural Resource Once Allocated.

NO THIRD PARTY – COMPETITOR INTERVENTIONS

While Patents Are Disclosed to 7 Billion People Much Before Grant of Patents – Everything is Kept Secret in Allocating Natural Resources - People of India have No Idea About Qualifications and Amount Charged for Allocating Natural Resources.

vi)  No Third Party or NGOs and to some Extent Even Competitors Don’t Have Access to All Qualifications Documents of Others. (There is No Pre-Grant Opposition.)

vii)  Better Qualified Competitors are ‘Not Allowed to Take Over Un-worked Natural Resources or Badly Managed Natural Resources.’ (There is no post grant opposition.)

viii)  Genuine Competitors Are Not Allowed to Access Natural Resources Directly from the Government But Can Acquire Natural Resources from Less Qualified Owners of Natural Resources. (Promote Free Trading of Natural Resources Among Companies.)

ix.)  There is No Natural Resources Tribunal, Special High Court Bench or Supreme Court Bench where Competitors Could Make Out a Case When Some Company Has Acquired Much More Natural Resources Than Qualified Through Misrepresentations or Has Inflated Development Plan and To Seek Cut in Their Allotments For Re-Allocations to Competitors.

x.)  There is No Preference in GOI Priorities to Companies That Have Low Promoter Shareholding or Better Technical Skills and Experience or Has Engaged Permanent Employees – Creating Maximum Wealth for Public Than Self when considerations of Natural Resources are in $Billions and $trillions.

PRAYER & REMEDY

Honorable Supreme Court May Please order or GOI May through Ordinance Implement Following New Procedures in Allocating Natural Resources.

For New Allocations.

A.)  Pre Qualification Opposition: - Applicant Companies to Publicly Disclose In Detail At All Times Their Technical & Eligibility Qualifications through Department and Company Websites and Print and TV Media to be ‘Subjected to Opposition from Competitors, NGOs, Experts’ for minimum 30 days.

B.)  Annual Reports of Companies should make ‘Disclosures’ at Par With Security and Exchange Commission of USA in case of Natural Resources.

C.)  Post Allocation Opposition: - Competitors, NGOs allowed to Oppose Allocation for 30 Days Before Handing Over of Natural Resources.

D.)  Breaking Cartels:  Natural Resources Shall Be Vertically and Horizontally Split With A View To Create Specialized Indian Companies. In Telecom a Company can bid for One Technology – In case of Mobile Telephony – Either 2G or 3G or 4G for Spectrum Allocation, Similarly one Company May Operate Telephone Exchanges, second Towers and Third Optical Fiber Network. Likewise one Company may operate DTH, second IPTV and Third Cable TV, Fourth Optic Fiber Broadband. One company may operate Land Line, second WLL and third CDMA fixed line services. All are allowed to Upgrade to Superior Technology. [Avoid All In One Companies With Zero Capability]

A company may operate Coal Mines, Second Power Stations, Third Power Grid, and Fourth Distribution of Power.

In Metals One Company to operate Steel Plant, Second Aluminum, third Zinc, Tin & Lead etc.

For both New Allocations and Old Allocations

E.)  Constitute ‘Natural Resources Tribunal Headed By Former CJI With Expert Members’ to Deal With Grievances of Competitors and Consumers.

Ø      Any Qualified Company that Couldn’t get Offshore Block or Spectrum could apply for Allocation of Natural Resources On Grounds of firstly Superior Qualifications & Experience, secondly Better Commercial Terms, thirdly Better Human Resource Profile Like Permanent Staff and fourthly Excessive Allocation to Undeserving and fifthly Non Working of Natural Resource By Owner. This shall avoid Trading and Hoarding of Natural Resources. 

ABOVE PROCEDURES TAKE CARE OF ALL WRONG ALLOCATION OF NATURAL RESOURCES TO UNDESERVING, EXCESSIVE ALLCATION & HOARDING IN PAST AND FUTURE WITHOUT CANCELLING OF ALL ALLOTTMENTS AS IN CASE OF 2G OR SEZs OR LAND ALLOTTMENTS IN NOIDA AND ENSURES MORE EQUITABLE SHARING OF WEALTH GENERATION FROM SALE OF NATURAL RESOURCES.

Thank you,

(Petitioner)

Ravinder Singh,

Inventor & Consultant

INNOVATIVE TECHNONLOGIES AND PROJECTS