FAQs about MRCM

(1) How MRCM decreases poverty

Answer 1 (A1) –

The rents from GoI plots, including IIMA, JNU etc will reduce poverty and increase class I-X education in commons. The biggest reason why commons drop out is poverty and reduction in poverty will reduce drop out rate.

As per commons going to IIMA, How many, WHAT PERCENTAGE, of IIMians come from slums? less than 1%. And what % of IIMians dont have running water at home? Perhaps less than 5%. So much for “IIMA is giving education for commons”.

(2) Regarding rent on IIMA plot

Answer 2 (A2) –

Are you suggesting that we starving commons should let IIMA , JNU use plot for free? Why this dariayadili and khairat for a college that otherwise professes capitalism and socialism? If IIMA cant pay, they should relocate to place where land is cheap, or manage with lesser land. IIMA manufactured 200 MBAs a year and that can be done in 10 acres. They dont need 100 acres for this. And if they still want 100 acres, they better cough up the rent — I dont believe in free lunches. The IIMA grands make Rs 15,00,000 to Rs 50,00,000 a year after they graduate, and I wish them more. But they are not some poor starving people who need subsidies. I support subsidizing food, medicine, education for poor — I dont like subsidies for rich.

Do you know that many countries who have HIGHER per capita iron (ore) have stopped mining and instead depend on imports from India and Brazil?

We MUST STOP all exports of iron ore. And royalty to ores must go to commons and military.

Please dont support crooks of BJP, CPM and Congress who are siphoning all the mines’ money away instead of giving it to commons and Military.

(3) Iron ore from Bellary was exported to China at around USD 60+ even in 2002. That it was sold at Rs. 100 per Tonne shows the ignorance or lack of knowledge of the reporter, who gave this newsu .

 Answer 3 (A3) –

Rs 100/tonne is mining cost. Thats the price the root level sub-contractor sells to contractor. You know how mining business works — the guys who bribe neta , IAS , judges and forms partnerships with them are the ones get contracts from Govt. Many of them dont even bother to visit the site and give lump-sum sub-contract to leaf ground level guys who work at mines. Rs 100/tonne is what these guys get.

http://www.thehindubusinessline.in/2005/12/26/stories/2005122602490100.htm

As of now, the cost of extraction for captive mining for SAIL and Tata Steel is between Rs 250 and 325 per tonne, while the market price (iron ore) is around Rs 2,000 per tonne.

So there is HUUUUUUUUUGE profit margin in mining business. And this margin goes into pockets of elitemen (who hire criminals) and neta, IAS, judges etc who are often partners. The profit margin together with corruption in IPS, judges has created network of criminals around mines. The mess is mainly because ‘educated’ people oppose giving mine royalties DIRECTLY to us commons.

I am talking about RAW costs, not taxes, royalties, bribes given to neta, judges, and hafta given to criminals. Rs 250/tonne is what SAIL pays —- and SAIL has habit of over-invoicing left, right and center. So if Rs 250 is what SAIL pays per tonne, surely, real ground level cost wont be above Rs 100. That is common sense, and I dont need google for that.

IITs and many other GoI-owned engineering colleges should be made part of military.

Those who join will have to serve defense forces and related dept for 11 years after they pass out.

The depts in IITs not useful for military should be dismantled.

All colleges except those related with military and medical should be de-subsidized. eg IIMA should be de-subsidized. And land rent should be charged on the plots they occupying.

(4) What is the mathematics of costs and profits and royalties of mining ?

 A4 –

Consider Natural Gas

The international price is $280 per tmc (thousand cubic meters) as in Jun-2008. The cost of extraction is about $20 per tmc .(Prices at which the commodity like gas, petrol, coal etc will be sold will be decided by discretion of NLRO initially and later by bidding (market ) )

Lets say if Indian gas extracting companies were to sell natural gas at international prices. And profits are dispatched to us Indians (citizens).

Production = 27.8 billion cubic meter = 27,800,000 thousand cubic meters = 27,800,000,000 cubic meters = 27,80,00,00,000 cubic meters = 2780 cr cubic meters

profits = 260 dollars per thousand cubic meter , assuming Jun-2008 selling and cost prices = $0.26 per cubic meters

Total profits in dollars = 2780 cr * $0.26 = 723 cr dollars

Rupees for dollars = Rs 45 per dollar

So profits in rupees = Rs 32,535 cr

Population in crores = 110 cr

Amount per capita per year = about Rs 300 per common per year

IOW, every Indian would get Rs 300 per year if natural gas royalties were to go to us Indians.

. IOW, the miners make HUGE profits, and not necessarily keep all. They might have to share with Ministers, judges, IAS, IPS etc. But how do they ensure that their low royalty bids win? No magic — walk into District Collectors office in Porbander District, Gujarat to get form to get mining licence, and the local criminals will make you disappear within minutes !! IOW, using criminals, the bid filing is kept a closed oligarchic process and that ensures that lowest bids arrive, and the miner makes the huge profit.

But the local miner who runs the local criminals is a small pawn and a small beneficiary in the whole game. The criminals require protection from IPS and local judges, and the IPS would protect these criminals ONLY if HomeMin and CM approves and the local judges will protect these criminals iff the HCjs approve. If the mine profits are huge, like Bellary Iron Ore mines, then the money chain goes all the way to Supreme Court judges and PM, Central Ministers and CBI.(Because the Supreme Court judges, PM, Central ministers, etc. are only interested in big profits )

——

The end result is horrible — since mining royalties are so low, the Govt income is peanuts. And so GoI has to resort to taxes like VAT etc which ruin small traders and ruin commons as VAT is regressive in nature. And reduction in royalty incomes also reduces funds necessary to build courts, policemen, Military.

(5) What is the mining mafia and who all are involved in it ?

A5 –

http://www.cpiml.org/liberation/year_2005/february/mahendra_Singh_Murder.htm

(MCC= Maoist Communist Centre)

The above article link gives a glimse of how deep the Mining Mafia is.

There are many Mining Mafia in India

1. Iron Ore Mafia of Bellary

2. Coal Mafia of Bihar

3. Lime Stone Mafia of Gujarat

4. Granite Mafia of Karnataka, TN

5. Kota Stone, Marble Mafia of Rajasthan (Soharabuddin was killed because of this mafia)

6. Sandlewood mafia of TN

7. Elephant teeth mafia

8. Aluminium Mafia of Orissa

—-

There are about 50-70 such mafia in India. The Mining Mafia are bigger than real estate mafia in terms of revenue. Most are at state or district-group level, but all pay protection money to Central Ministers, PM, SCjs and leaders of major Party. In addition, they pay bribes to all CMs , IPS and IAS. As per some reliable rumor mills, large percentage of  CMs, Central Govt Ministers,  party heads ,MPs, IAS, IPS are part of one or more of these Mining Mafia.

Mining Mafia is a big business in India. No wonder why so many young men want to become IAS, IPS. And no wonder why so many young men join BJP, Congress and CPM to become MLAs, MPs, Ministers, CMs, PM. Not political party (one rare exception aside) wants to cut these mafia. To be specific, Manifesto of BJP, CPM, Congress etc does NOT even talk about the problem of Mining Mafia nor does propose any solution at all.

The main minerals like Crude Oil, Coal, Iron Ore etc are under Center. And since it is under concurrent list, Center’s writ prevails over that of State. Further, the Centra has tremendous powers over IAS, IPS cadres even when IAS, IPS is under State Govt. I am not denying that State Govt has powers — they do. But center-state powers are in 65:35 ratio or more towards center. This was main reason why Shibu Soren was more interested in becoming Coal Minister in Center than CM in Jharkhand State. Because Coal Minister has more powers over Coal Mining than CM.But the coal mafia, which is dominated by upper caste elitemen, blocked him as Shibu Soren supports Tribal elitemen (not commons).

Lets divide the total sale price of ores into following 4 parts

1. Costs – Labor, electricity, transport etc

2. Royalties , Taxes like export duties etc (i.e. money that goes to GoI)

3. Miners’ profits

4. Bribes Ministers, CMs, PM, MLAs, MPs, IAS, IPS, HCjs, SCjs get

Today, (3) and (4) are very very high because (2) is low. If (2) is raised then (3) and (4) will reduce. Which is why all intellectuals who are agents of elitemen, neta etc oppose all means by which (2) can increase.

if royalties go high, bribes will decrease. eg say costs are Rs 1000/tonne including market interest rates and normal profits of miners. And sale price is Rs 5000/tonne. Then maximum possible royalty is Rs 4000. Now if royalty Rs 4000, bribes IAS, IPS, judges, Ministers get will be zero. And a miner who puts bid of Rs 100 royalty will make excess profits of Rs 3900 and so will be able to give huge bribes. But Rs 100 bid can win the tender ONLY if these ones who file higher bids are beaten black and blue and stopped. This is why ALL Ministers (including CPM, BJP Ministers) all over India promote criminals in mining districts. And these criminals also retard the development, and this is main reason why mining districts are often least developed.

(6) MRCM – this law says that it would generate revenue for the poor using postal office to give them their money.

Firstly poor need employement not money. You give them money to just feed for a day. after that what ? after the mines get finished then what ?

A6 –

A: Poor need both money and employment. MRCM does not reduce employment. In fact, MRCM (and proposed Wealth Tax on Land) it reduces cost of land which increases employment. MRCM gives money to poor without tax and so demand for goods will increase and thus increase employment. MRCM also includes royalties from bandwidth which are also for-ever.

And minerals are expected to last for over 200 years. Further, MRCM also includes land rent from Govt plots and they are almost for ever. So MRCM will supply money to poor for several decades to come. has long. MRCM reduces poverty within months — something employment generation programs will take years. And it can be implemented with just 200,000 clerks.

Initially, MRCM uses family as unit and family heads as point of interface. There are 26 crore families in India, and over 95% have ration card. Those who have bank accounts dont need new account. Say 25 crore family heads dont have bank or post office account. Using Ration Card Number and Tahsil Code itself as initial post office account number, all 24 cr new accounts will be created at the local SBI branch or designated bank branch or post office (not all). Now at each SBI branch or Post Office, the clerk will need to take ration card number, picture, finger print of the family head. If one clerk can create 50 accounts a day, creating 25 cr accounts would need 25 cr / 50 = 50 lakh man-days. Existing PSU banks have over 600,000 clerks. So if 200,000 clerks are put on this job, they can create all accounts in one month. Now initially, there will be some inaccuracies, but fingerprint is a powerful tool to get rid of in-accuracies. If a person submits his fingerprints twice, the machine will eventually catch him in few days.

(7) Again I will say how will you communicate to the public about your MRCM and other issues. And suppose if you communicate, then will they agree with you. Lets suppose they agree with you then how Patwari (Village Officer), DM office will collect their votes. They (DM, patwari) have only this task?. At this time you have this type of 200 affidavit (like MRCM), is it practically possible to get vote on all these and to register them. Just impossible.

Answer 7 (A7) –

I will submit 200 affidavits. They will take about 500 pages. The fee will be 500 * Rs 20 = Rs 10000 . The clerk can scan 500 pages in 2-3 days. Rs 10000 more that covers his cost. What is “impossible” here? And citizens will decide which affidavit he wants to support, For each time he files YES, he pays Rs 3. One clerk can register 200 requests a day. So his collection is Rs 600 per day of Rs 15000 per month (assuming 25 days in a month). This covers his salary of Rs 8000. So cost of PC , camera etc everything will get covered in 5-6 months.

If 72 crore citizens decide to register YES on 200 affidavits, then I will combine all RTR affidavit into one affidavit. Similarly, I will group all Jury based affidavits. So all 200 affidavits will get combined into 5-8 affidavits. And 72 cr citizens dont need to register YES, 50 cr are enough to decide the fate. So if 50 cr citizens want to file 8 YESes, and if one clerk can register 200 YESes a day, then we need (400 crores / 200 ) < 2 crore clerk days. So 100,000 clerks can do this in 200 days. IOW, the process can executed in about 6 months. The Rs 3 fee they collect will pay for their salaries.

Whether citizens will register YES -NO will depend on affidavit. eg if you dislike MRCM for any reason, you need not register YES. But there are people who make barely Rs 50 a day or even less. They might like the idea of getting 100% ethical Rs 300 to Rs 400 per person per month and they might like MRCM.

(8) IF JNU pays 60 crore rent – it has to make that kind of money – from where will it get the money – most likely by raising fees – then what happens to the common man.

A8 –

JNU plot is worth Rs 16000 cr by a pessimistic valuation of Rs 40,000 per sqm. So rent is Rs 480 cr per year . And if I take better valuation, it would be a bit more. So every common will get about Rs 5/year from this JNU rent

Please explain me — how is common man adversely effected? To start with, what % of students in JNU you know or think are “commons”? Only 12% of people in age group 18-30 in India manage to enter college. And JNU needs fluency in English which over half of the people in this 12% dont have. Most people in JNU come from urban areas, where some 50% people live in slums. How many JNUites grew up in slums? Perhaps not even 1%.

The Rs 5 commons will get from JNU plot and Rs 800 or more from all mines and plots will enable many commons to improve their primary education. So by giving rent free plots to airports, IIMA, JNU etc you are only ruining education of commons not helping them.

—–

The rent on land plots does NOT end with IIMA and JNU. There are merely starting points. It includes ALL GoI plots except agency is exempted by commons thru an explicit referendum and Jurors.

To be specific-

a) Airports will have to pay land rent to us commons

b) All colleges which got land plots GoI will have to pay land rent (except those affiliated with Military) to us commons

c) Cricket stadiums which got GoI lands will have to pay land rent.

d) All sports stadium will have to pay land rent

e) Most Govt depts like Tourism will be privatized and will have to pay land rent

f) The judges will be given HRA of Rs 10000 to Rs 30000 a month or a 4 BHK flat, and plots under bungalows will be rented out. Same for most IAS, MPs and Ministers. Spare PM, CM and may be 10 more Ministers, NO ONE will get anything more than 4 BHK apt.

h) President post will be abolished and entire President House plot will be rented to builders.

And many more.

(9) How do you plan to execute to distribute the money to all the citizens of India? How will you do the verification of the beneficiaries?

A9 –

The money will be deposited in every common’s account in local post office or local SBI branch. If every common makes two withdrawals in a month, we have 114 cr commons, and so we have 228 cr withdrawals in a month. The withdrawals can be only in denomination of Rs 100. So clerk’s task is simple, he has to dispense only Rs 100 notes with him. As of now, a clerk can dispense 200 cash cheques a day or 5000 cash cheques a month. So to handle 228 cr transactions, we need 228cr/5000 < 5 lakh clerks. This is gross upper bound, as many may withdraw only once a month. Only adults will make withdrawal and so number of commons who make withdrawal will be 80 cr and not 113 cr. So if we take 120cr withdrawals a month, we need < 2.5 lakh clerks. As of now, SBI has 300,000 clerks. So the logistics of dispensing mineral royalties and land rent to each of the 114 cr in cash form is possible. As time goes, with ATM etc things will become more manageable.

There about 3 crore to 5 crore legitimate adult citizens of India who have no ID. They can merely appear at Tahasildaar office and get an ID based on just their name, picture (and tahasildaar will take the pix) and finger print and NOTHING ELSE.

Later (within 4 months) additional information they will need to give is name of both parents, name of sibblings, name of children and IDs of each of them

===

Rest 70 crore adult citizens have IDs. They can use any ID. The only punishment is when one person collects MRCM money twice. The system using finger print will eventually ctach him

==========================

Now are you referring to “identity verification” problem? As of now, we have very shabby mechanism and so leakages will be there. But less than 5%. Better than 80% leakages in NREGS or IIMA-subsidies or JNU-subsidies or airport-subsides. So if MRCM law starts today, at least 95% of the money will go to us commons — only 5% will leak. As time goes, I have proposed a law to reduce the leakages aka National ID System.

(10) On what criterion do we plan to “give” this money every month to all the citizens of India…is it like free money or a transfer of wealth or are these funds to be given to be collected via taxes ?How is your proposal any different from suggesting a tax cut that supposedly increases the spending power of the commons.

A10 –

It is NOT free money .The money is from MINERAL royalties and land rent from GoI plots. As you know, the GoI plots such as IIMA plot, Delhi airport plot etc belong to us citizens. So why should we citizens NOT collet rents from these plots? IIMA is 100 acre and at Rs 40000/ sqm low ball, the land is worth Rs 2000 cr and rent at 3% a year will be Rs 60 cr a year or Rs 0.60 per common per year. And Delhi airport is 2000 acre and at low ball price of Rs 100,000/sqm, the land price is Rs 200,000 crores and so at 3% a year rent it is Rs 6000 cr or Rs 60 per citizen per year. GoI has 1000s of plots all over India. The rents from these plots can be a substantial amount for us commons. So it is NOT free money. It is rents from the plots we own. And it is royalties from the Mineral ores we own such as crude oil, alumina, iron ore etc.

It is NOT transfer of wealth or a tax cut.. The collection of rents from IIMA plot, JNU plot, airport plots etc is NOT transfer. We commons of India already own that land. So far, these plots have been used by elitemen free of rent aka fokatvaad. Now we at ‘MRCM and Right To Recall’ Group want to put an end to these fokatvaad aka socialism. So it is not transfer of wealth.

The tax cut will only befenit the elitemen and not us commons. I am against taxing elitemen to give money to commons. The wealth, income and inheritance taxes I have proposed are ONLY for Military, Courts, Police, Nukes, creating National-ID system, giving weapon-use trainning to all commons and so forth. There is no proposal as tax elitemen to feed commons. But there should be no tax cuts if there is deficit. We must raise wealth tax and inheritance tax to reduce decifit to zero.

The problem with govt keeping and spending the money is — corruption. As you know, over 100 out of 99 IAS, IPS, judges, Ministers are corrupt to core. So when Govt spends the money, Nbjprie beocme rich and we commons starve to death. I support Govt funding on Military, Nukes, Courts, Police etc, But it is in best interest of all (except Nbjprie) that mineral royalties directly go to us commons.

The land rent is NOT a tax. Tax is something I have proposed to fund Military, Courts and Police and it is 2% of land value. It does not to commons as their money. Whereas rents from public lands, such as IIMA plot, Delhi airport plot etc go 33% to Military and 67% to commons.

(11) You talked about Rent from Delhi Airport, but pray tell us who do you propose will pay this rent. Airlines? But then Airlines would conveniently pass on the rent load to passengers and passengers in turn would stop flying owing to high fares.

Answer 11 (A11) –

Consider Delhi Airport. It serves 2 cr passengers a year. The plot rent can be Rs 6000 cr per year at mkt price of Rs 100000/sqm. It would Rs 3000 per passenger. Consider an eliteman who used the Delhi airport 20 times in a year. But by not charging him land rent of Rs 3000 per flight, his richness increased by Rs 600,000. And every common of India lost Rs 60 per year as he did not get any land rent from the Delhi Airport plot he owns. So are you suggesting that elitemen should be give rent exemption and we commons should starve?

Now a passanger who comes on Delhi airport could be staying in Hotel which charge Rs 5000 a day. Doesn’t he pay the land rent to the hotel? Well, same way, he has to pay to use the airport plot. Sorry, no socialism.

(12) How will crores of citizens come to know that MRCM affidavit has been submitted?

A12 –

I will first describe a real event. In around year 2002, GoI made a scheme that every senior citizen whose income is below Rs 50000 a year will get Rs 200 per month (pension reached by postal order to their homes and a affidavit was required to be filed for income declaration; for false affidavit, there is penalty of six months; so there was very less chances of corruption) . GoI did not advertise the scheme in TV, newspaper, radio anywhere. Yet, within a short span of say 9-10 months, almost every senior citizen who was eligible was enrolled in the scheme. How did the word spread? When something is in immediate, personal and direct interest, and simple to follow ,the words spreads like electric current.

Once citizens force PM to print `Citizens Voice-Transparent complaint / Proposal System` in the Gazette, and once MRCM affidavit is filed —  because MRCM is in direct, immediate and personal interest, the information on MRCM affidavit will spread equally fast. The task a citizen has to do is — only visit Patwari’s (Village Officer) office for 10-15 minutes and pay Rs 3 fee. And since MRCM is in his direct and immediate interest, he will tell as many neighbors, relatives, friends etc about it. This is how word on MRCM affidavit will reach to crores of citizens within few days.

Today, media gives information which cannot be verified and so in unreliable.

But `Citizens Voice` will give reliable information, information which can be verified by every person. So, when few lakhs support MRCM via the Citizens voice- transparent complaint / Proposal system, other people of the country will come to know that there is something which genuinely people are supporting , something which is in the interest of the country. Then , MRCM will spread like wild fire.

12B. Questioner- How are we going to handle a situation when duplicate affidavits are filed ? For example, once MRCM draft is submitted, politicians can submit their own versions of draft and try to create confusion among people by creating negative propaganda about RTR party’s draft. In such a situation the peoples choice can get scattered. One Draft will say all the money through MRCM should go to public, as we are already allocating money for Defense Budget. Many people might support this draft, as they think that they will get more money.

One draft will say Private properties should also be included. Many people might support this draft too, as they think that they will be entitled to get more money.

A12B –

MRCM-1 : 33% to Military, 66% to citizens , no private land

MRCM-2 : 0% to Military, 100% to citizens , rent on private land

Citizens may register YES on both. Or say they register YES on MRCM-2 only. Fine — in any case MNCs will suffer huge loss, and then their capacity to buy media will be damaged. With RTR-DD-CEO, the paid-media will further weaken.

And activists can be explained the importance of Military. So later 33% royalty to Military can added. Or wealth tax will be increased by 2%.

The proposal to collect rent on private land will not find activists. The activists are not stupid. They will see that if private land-owners are asked to pay rent, then it is as good as taking away their lands. And it is possible. But if such thing is done, then talented private individuals like doctors, engineers etc will all flee to USA. Then who will serve citizens? Babu? Social worker? Activist? Neta?

IOW, activists can be fooled as long as drafts dont reach their hands. But TCP is heavily draft centric. So drafts cant be hidden from activists. So bad drafts’ badness will become very visible

====================

The paid-media is powerful, but please also see its limits. It cannot convince you that 2 + 2 = 5 . IOW, against hard facts, the paid-media falls flat. The best paid-media can do is evasion.

And to see the weakness, please see the FACT that both — Anna and Arvind Kejriwal have been forced to support (even though lip service) to RTR. They would have wished that RTR does not come up. But just handful of us, took RTR-draft to a few hundred of activists of Anna-Arvind, and chain reaction started. And despite paid-media completely ignoring RTR, despite paid-media giving full coverage to Anna-Arvind’s draftless RTR and giving coverage to Subramanian Swamy — RTR-draft made so much progress.

Now all this is without TCP and without RTR-DD-CEO.

So with TCP, paid-media does not stand a chance.

The bottom line is to make the commons read the draft, and ask them not to believe in lip service.

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