301.005 : Second RRG proposal - Mineral Royalties for Citizens, Military (17-Dec-2011) No.047

December 17, 2011

301.005 : Second RRG proposal - Mineral Royalties for Citizens, Military

https://www.facebook.com/notes/rahul-chimanbhai-mehta-rrg/301005-second-rrg-proposal-mineral-royalties-for-citizens-military/10150422744301922

(for downloading complete PDF , containing 50 chapters on full law-drafts needed to reduce MNC-domination, nepotism in courts, corruption in police/courts/education, improve education, improve Military, reduce cow slaughter, see http://rahulmehta.com/301.htm )

 (For index, see notes #301.Index at http://facebook.com/note.php?note_id=10150422423416922  )

====

5.1    How will three line RTI2 reduce poverty in 4 months?

The day citizens manage to force PM to print RTI2 in Gazette Notification, I will inward MRCM-draft as an affidavit under clause-1. What is MRCM-draft? The draft describes an administrative procedure which will enable National Level Officer to send Now how many crore citizens do you think do not want 100% ethical about Rs 400 (may be less or much more) a month?  I believe that over 40 cr citizens want 100% ethical money, and so RTI2 will ensure that PM is forced to sign the MRCM draft.  And once MRCM draft is signed, we commons will get about Rs 300 (may be less or more) or so per month person, and thus poverty will reduce.

Is RTI2-draft must to get MRCM-draft passed?

If pro-MRCM activists insist on waiting till they get majority in Parliament and then enacting MRCM-draft, then there is possibility that MRCM-activists be waiting for ever. First they may never get majority in Parliament. And worse, even if they get majority, there is possibility that their own MPs will sell out and refuse to pass MRCM-draft. E.g. in 1977, Janata Party MPs had promised to enact Right to Recall laws before election, and after getting elected, later they refused to pass Right to Recall laws. So IMO, MRCM-activists should focus on creating mass movement on RTI2-draft, and use RTI2-draft to get MRCM-draft passed than rather than wait for election victory.

====

5.2    MRCM draft in short

The land rent over IIMA plot, JNU plot, all UGC plots, Ahmedabad airport plot, all airports plots and 10000s of such GoI plots and royalties from all minerals, coals and crude oil of India must go we the Citizens of India and our Military and no one else. And royalty, rent  must come directly, not via any schemes.. eg say rents from GoI plots and mineral royalties in Apr-2011 was Rs 45,000 crores. Then as per the MRCM Gazette Notification I proposed, Rs 15000 crores will go to the Military and about Rs 300 will go to each citizen in his post office or bank account. If every citizen withdraws cash once or twice a month, this would need no more than 150,000 clerks all over India. Existing nationalized banks have over 600,000 clerks. So the distribution of cash is feasible. The direct cash distribution MRCM draft would create may translate into an income of over Rs 8000 per person per year and also lowering of land/house prices. Per person, not just per family. And thus MRCM draft will reduce poverty, increase income and thus increase demands for goods. The increase in demand for goods will increase local industries and thus increase employment. The increase in local industries will improve engineering skills and this will improve weapon manufacturing So less poor Hindus will turn towards Christianity or Naxalism or both. And one year after this law passes, if 3rd child is born, then both the parents will get 33% less rent (those who already have 3rd child won't be effected). So this law will also control population..

=======

5.3    Some details MRCM draft

Right to Recall main officer

1. One of the clauses of the draft of MRCM GN says : “the PM shall appoint a NLRO (National Land Rent Officer), whom the citizens of India may replace using the following procedure ... ” . The replacement procedure is as follows  

(1.1) Any citizen can pay deposit equal to MP election and register himself NLRO candidate.

(1.2)  Any citizen of India can walk to Talati’s office, pay Rs 3 of fee and approve at most five persons for the NLRO position. The Talati will issue receipt with his voter-id#, persons he approved etc. 

(1.3) The Talati will put citizen’s preferences on Govt website with his voter-ID. (1d)A citizen can cancel his approvals any day as well.

(1.4) The PM’s secretary will publish the approval counts of each candidate (1f) If a candidate gets approval of over 50% of all registered voters (all registered voters, not just those who have filed their approval) then PM will expel existing NLRO and appoint that candidate as NLRO.

(1.5) If any person has over 50% approvals and has 2% more approvals than existing NLRO, then the PM will appoint the person with highest approvals for that position.

2. So the Right to Recall over NLRO will ensure that NLRO will be much less corrupt and will deliver the rent money to citizens.

3. The NLRO will allocate plots which has been declared as property of the Citizens of India by a law or a National Jury verdict that specifically authorizes the NLRO allocate that land.

Collection of rent

4. One of the clauses of proposed MRCM-GN says : “The Citizens of India hereby decide and declare that the plot of IIMA, plot of Gujarat Vidyapeeth Ahmedabad, plots of all IIMs and the plot of JNU is the property jointly and equally owned by the Citizens of India. These plots are NOT property of the State or the State of India or the Union of India or any other private/GoI entity, but these plots are property of the Citizens of India. Further, all the plots of all UGC funded universities and colleges not owned by private companies or trusts are declared as the property of the citizens of India. And all plots under Central Govt and Govt entities are also hereby declared as the property of  the Citizens of India..

5.    Another clause says : all plots under following Ministries/Dept will also come under NLRO :

• Ministry of Tourism
• Airports, all buildings owned by Air India and Indian Airlines
• IIMs, all UGC funded colleges and universities except science and engineering
• Ministry Consumer Affairs and Public Distribution
• Ministry of Information and Broadcasting
• Ministry of Information Technology
• Ministry of Rural Development
• Ministry of Small Scale Industries & Agro and Rural Industries
• Ministry of Social Justice and Empowerment
• Ministry of Textiles
• Ministry of Tourism and Culture
• Ministry of Urban Development and Poverty Alleviation
• Ministry of Youth Affairs and Sports
• Planning Commission

6.    [About IITs, IISc etc : A separate Govt Order we demand says:  --- All the IITs, NITs and IISc shall come under DRDO and the DRDO director shall be the Chief Officer of these colleges and shall appoint Deputy Chiefs in these colleges to run the day today operations. The colleges teaching science and engineering will come under Ministry of Science and will not come under NLRO. However, the excess lands which these colleges have will come under NLRO]

7.    For the unused land, NLRO will divide the land in plots of appropriate sizes as he seems most profitable rent wise. NLRO will hold auction for each plot. The conditions for auction will be as follows

• The lease will be for 5, 10, 15 , 20 or 25 years as decided by NLRO. The lease shall never be more than 25 years
• The bidders will give bids for monthly rent and bidding period which can be less than maximum lease period. So bids will be in (monthly rent , months lease) format. One person can submit multiple bids. Minimum lease period will be 12 months.
• The weight of the bid will Monthly_Rent / log(Lease_In_Months). i.e. more the rent, higher the weight and longer the lease, lesser the weight.
• The bids will be open
• The NLRO will give the plot as per weight of the bids.
• NLRO will charge 3 months rent as deposit.

8. During the lease time, the NLRO will revise the rent every 3 years based on % change in the land prices in the 1sq km area around that plot and % change in interest rate from the day the plot was leased and the day when rent revision occurs.

9. After the lease time is over, NLRO will hold a fresh auction, where in existing lease holder will get benefits

• his weight will get multiplied by 1.25 to 1.5 depending on years he has paid rent.
• he may increase his bid within 1 month after auction is over.
• the existing lease holder will get 2 to 6 months new rent when he vacates.

10.  But if existing lease holder loses the auction, then he can move or sell the fixtures on that land. But he will need to vacate that land.

11.  If the plot is currently being used and occupied (eg IIMA plot), NLRO will take the mean land price in past 3 years of sale in 1 km area round the plot and decide the price of plot and set yearly rent as (market_price * prime_interest_rate/3) for next 10 years. The rents will be revised every 3 years. After 10 years, an auction as in clause-6 will be conducted.

Dispatching rents

12. The NLRO will give 34% of the rent collected to Defense Minister for the purpose of strengthening Military and providing weapons and weapon-use education to all citizens.

13.  The NLRO will distribute 33% of the rent collected every month to the citizens born in that State or residing in the State for past 15 years, with maximum limit of twice the National per capita rent given last year.

14. The NLRO will distribute the rest 33% the rent collected every month to the citizens of India

15. The share will be zero for those below age of 7 years, 1/4th to those below 14 years, half for those below 18 and same afterwards.

16. One year after this law is passed, the rent a person obtains

• will increase by 33% if he has no kids
• will increase by 33% if he has only 1 daughter
• will remain at par if he has (1 son) or (1 daughter, 1 son) or (2 daughters)
• will decrease by 33% if he has more than (2 daughters, 1 son) or (1 daughter, 1 son) or (2 sons) or (3 daughters) and in which youngest kid is born 1 year after the law is passed
• will decrease by 66% if he has more than (3 daughters, 1 son) or (2 daughters, 2 sons) or (1 daughter, 2 sons) or (3 sons) or (4 daughters) and in which youngest kids is born 1 year after the law is passed

17.  The rent paid will be 33% higher for men above 60 and women above 55 ; and will be 66% higher for men above 75 and women above 70.

====

5.4    Dispatching mineral royalties

As of now, the mine plots are auctioned to the one who gives highest royalties. The same procedure will continue but may get modified later to improve the bids. But the one change MRCM Group demands and promises is that mine royalties and crude oil royalties will go to commons and Military directly.

====

5.5    MRCM draft at State Level

All plots under State Govt not used by Police, Courts, Military, Prison, Govt Schools, Govt Hospitals , State Transport bus stations and plots specifically exempted by law shall be up for rent collection. The State Land Allocation Officer shall collect the rents and give 34% to Military, 33% to citizens of India. Whether the land is under State or Center, the rent is divided in the same fashion.

=====

5.6    How much is land rent?

The Govt of India, Central and States, have 10000s of plots with huge marker value. Here is a small example

(for proper table, pls see section-5.6 of http://rahulmehta.com/301.htm

Plot Name   -----    Area  -----  Price persq meter -----   Plot’s marketvalue

IIM Ahmedabad -----   100 acres -----   Rs 40,000 -----   Rs   1,400 crores

IIM Lukhnow   ----- 200 acres  -----  Rs 20,000  -----  Rs 1,600 crores

IIM Lucknow (Noida)  -----   10 acres -----   Rs 50,000  -----  Rs 200 crores

IIM Kolkata -----   135 acres-----    Rs 20,000 -----   Rs 1,000 crores

IIM Indore  -----  190 acres    Rs 15,000    Rs     500 crores

JNU  -----  1000 acres -----  Rs 40,000 -----  Rs  16,000 crores

Gujarat Vidyapeeth  -----  25 acres -----  Rs 40,000 -----   Rs  400 crores

Gujarat University -----   250 acres -----   Rs 35,000  -----  Rs 3,500 crores

TOTAL  -----          Rs  27,000 crores

(Please note that above land prices too less compared to real market price as on May-2009. The prices in Apr-2011 were at least twice)

So what shall be the rent if these plots are given out to builders? Rent of the nine plots at 3% of market value of plot = Rs 27,000 cr * 3/100 = Rs 810 cr a year = over Rs 7 per citizen per year. Now these plots are no where as valuable as many other prime plots such as Mumbai Airport, Ahmedabad Airport, Bangalore Airport etc. Here are more examples

Plot Name    Area    Price persq meter    Approx marketvalue

Ahmedabad Airport   ----- 1850 acres -----   Rs  40,000 -----   Rs  29,600 crores

Mumbai Airport  -----  1100 acres  -----   Rs 100,000 -----   Rs  44,600 crores

Delhi Airport ----- 5000 acres -----  Rs 100,000 ----- Rs 200,000 crores

Banglr. Airport (new) -----   4050 acres  -----  Rs  10,000 -----   Rs  32,400 crores

Banglr. Airport (old) -----   1000 acres -----   Rs 100,000 -----   Rs  40,000 crores

Calcutta Airport -----   1500 acres  -----  Rs  30,000 -----   Rs  18,000 crores

Chennai Airport  -----  4800 acres -----   Rs  40,000  -----  Rs  76,800 crores

TOTAL  -----     Rs 440,800 crores

(Please note that above land prices too less compared to real market price as on May-2009. The prices in Apr-2011 were at least twice)

So what shall be the rent if these plots are given out to builders? Rent of these airport plots at 3% of market value of plot = Rs 440,800 cr * 3/100 = Rs 13,224 cr year = Rs 120 per citizen per year !!

The Govt has  about 50000 plots by one estimate. Even if rent from each plot is as small as 20 paise per person per year on an average, the rent exceeds Rs 12000 per person per year. Either we commons will get this rent or land prices will drastically decrease (latter is what will actually happen) which will enable us commons to buy homes at lesser % of our incomes and start businesses.

=========

5.7    How much is spectrum royalties?

The lease cost of 3 spectrums – 2G, 3G  and S-band was over Rs 200,000 for 20 years. If the spectrum is not leased for 20 years but rented is taken year-wise, assuming 6% interest, EYI (equated yearly installment) would be over Rs 15,000 crore or Rs 120 per citizen per year (not per month). Now there are just three spectrums --- all spectrums added may give about twice the rent.

=======

5.8    How much is mineral royalties?

The mineral royalties estimation is possible, but varies as the selling prices fluctuate. Here is an estimation based on Jun-2008 prices. The estimation uses following method, which are borne from laws I am proposing. As per laws I am proposing, the mines and oil wells will be leased using competitive bidding. So the charge miners would charge will be rock bottom low and will depend on prevailing labor wages in India and cost of equipment. Now in the laws I am proposing the Govt would charge international selling price from the buyers. The difference would be royalty of which 67% will go to citizens directly and 33% would go to the Military. Following is my estimate of crude oil royalty based on Jun-2008 prices

Crude oil

Oil international price = US$140 per barrel

Extraction price in India = below $25 per barrel including all costs.

(As on Jun-2008 oil companies charge $55 per barrel and make huge profits which becomes loss due to buying oil at $150 from international market. $25 is price Indian oil companies were charging in early 2000s to Indian refineries. To that add the fact that Indian oil companies are hugely over staffed and over pay their employees. eg clerk in ONGC gets about Rs 20000 including all perks and expenses while clerk in private gets Rs 8000 or so. This expenses can be decreased).

Production in India = 660,000 barrels per day= 24 crore barrels per year

Population = 110 cr

Per capita Production in India = 0.22 barrels per Indian per year

Profit per barrel = US$ 115  

Total profit in dollars = 0.22 * 115 = $25 dollars per Indian

Dollar price rate = Rs 45 per dollar

So profits in rupees = $25 * 45 = Rs 875 per common per year

If crude oil prices drop to US$ 70 per barrel, then profits will reduce to about Rs 250 per citizen per year.

Iron Ore

production  = 123 million tonne  = 12.3 cr tonne = 0.11 ton per Indian citizen

price   = 150 dollars per tonne = Rs 7600 per tonne

mining cost = Rs 300 per tonne

Profit per tonne = Rs 7200

Profits per common = 0.11 * Rs 7200 = Rs 730 per year

IOW, if crude oil is given to refineries at International price, and profits are dispatched to every Indian, every Indian will get Rs 875 a year. This will decrease as oil prices decreases and will increase if oil price increases. This was just crude oil. The royalties that come from coal, natural gas, granite, marble, kota stone, copper, alumina, iron ore and waters also form sizeable amounts. Once citizens know that they are getting mines’ royalties, they will curb the mine mafias and this will enable honest people to enter the mining business and thus royalties will increase by several folds. As per my guesses and estimates, the mine royalties will exceed Rs 4000 to Rs 6000 per person per year

So mine royalties and land rents will add to about Rs 18000 per person per year. Of this 33% will go to Military. So the citizens will get about Rs 12000 per person per year. This money is not dole, it is money from the plots and minerals we citizens own. The money is not coming from any tax. There is no “tax the rich, feed the poor” proposal. It is simply about minerals and plots that we citizens own.

The MRCM draft is the mother of all changes. We are proposing other changes only to bring this change and to ensure the change stays after bringing it. As of today, land rent and creation of new M3 are the principal two reasons why we commons are poor. The forth demand shall reduce us commons’ poverty.

=========

5.9    Effect of land rent collection

Once the land rent act is enacted, one of the two things will happen ---

1.  either we commons will gain say Rs 500 to Rs 1000 per person per month of land rent  OR

2.  the price of land will fall, as renting makes hoarding very expensive

The latter is more likely. Now if price of land falls, then housing price will fall, which will improve quality of the lives of us commons --- many of us commons who live in slums will be able to move to say 1BHK flats. And if price of land falls, number of businesses will rise (since as real estate cost drops, it becomes easy for craftsman to expand), and we commons will have far more jobs and better salaries. Higher industrialization would increase the mineral prices, and so the mines’ royalties will increase. So in any case, the proposal of land rent from IIMA plot, other IIM plots, JNU plot and 10000s of plots and mines we commons own is bound to benefit us commons by a substantial amount.

So land rent and mine royalties proposal will create incomes, reduce poverty, improve land and houses availability to the poor and middle class. Thus it will increase purchasing powers of the poor and middle class. The increase in purchasing powers will increase demands and thus increase industries and which will increase employment and skills. And it shall also strengthen our Military.

=====

5.10    Effect of not collecting land rent

The effect of not collecting is plain injustice, exploitation of poor via rich and unfair increase in economic equality. eg Consider airport plots. Consider Delhi Airport. It serves 2 cr passengers a year. It has rent value of Rs 6000 cr per year. i.e. Rs 6000/2 =  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. This only increases the wealth/income gap by unfair means of rent denial.

========

5.11    Right to Recall NLRO

The rent is to be collected and dispatched by officer titled as National Land Rent Office (NLRO). The rents will be determined by standard calculations based on market prices and interest rates, so NLRO does not have discretionary powers there. But he does have some discretionary powers in deciding the process of making sub-plots. So what would stop NLRO from siphoning all the rent into his pocket? Well, the forth MRCM demand , promise has clauses which shall enable us commons to expel/replace NLRO. These replacement system is the key that shall enable us commons to find an NLRO who believes in dispatching rents to us commons.

=======

5.12    The draft of the proposed MRCM law

Section-1 : Registering citizens Approvals for NLRO candidates

(1.1) (general instruction)  The word citizen would mean a registered voterThis GN will become effective only after over 37 cr citizens have registered YES on it.

(1.2)(procedure for PM)    PM would appoint an IAS officer as NLRO (National Land Rent Officer) .

(1.3)(procedure for CS  = Cabinet Secretary)    If any citizen wishes to be NLRO, he may appear in person or place affidavit before CS. The CS is hereby ordered to accept his candidacy for NLRO after taking fee same as deposit amount for MP election. CS will issue him a serial number.

(1.4)(procedure for CS) The CS may assign above task to any class-1 officer.

(1.5)(procedure for Talati) A citizen can come in person to Talati’s office, pay Rs 3 fee and approves at most five persons for NLRO position. The Talati will enter his approvals in the computer and issue him a receipt with his voter-id#, date/time and the persons he approved.

(1.4)(procedure for Talati) The Talati will put the preferences of the citizen on Govt website as decided by the CS or Collector with citizen’s voter-ID number and his preferences.

(1.5)(procedure for Talati) If a citizen comes to cancel his Approvals, the Talati will cancel one of more of his approvals without any fee.

(1.6)(procedure for CS)  On every Monday, CS may publish approval counts for each candidate.

Section-2 : Replacement of NLRO

(2.1) (procedure for PM) The word citizen would mean a registered voter of India

(2.2)(procedure for PM)   If a candidate gets approval of over 50% of ALL registered citizen-voters (ALL, not just those who have filed their approval) in a district, then PM may  expel the existing NLRO and appoint the person with highest approval count as NLRO.

(2.3)(procedure for PM)  If the person on the seat has come by approvals, and the person with highest approval must have 2% more approvals than existing one, then and then only the PM will appoint the person with highest approvals for that position.

(2.4)(procedure for PM) If the person’s approval is below 33%, then PM may or needed not replace him with his appointee. But as long as approval is above 33% , PM need not replace him with his appointee. Discretion of PM will be final.

Section-3 : Ownership of plots under GoI

(3.1)(procedure for Supreme Court judges , High Court judges, PM, all citizens) The Citizens of India hereby decide and declare the plot of IIMA, plots of all IIMs and the plot of JNU as the property jointly and equally owned by the Citizens of India. These plots are NOT property of the State or the State of India or the Union of India or any other private/GoI party, but these plots are property of the Citizens of India. Further, all the plots of all UGC funded universities and colleges not owned by private companies or trusts are declared as the property of the citizens of India. All the officers and judges of India, including the PM, all the High Court judges and all the Supreme Court judges, are hereby requested NOT to admit any plea that opposes this decision and verdict of the Citizens of India.

(3.2)(procedure for SCjs, HCjs, PM, All citizens) All plots under following Ministries/Dept  will come under NLRO

• Ministry of Tourismo   
• Airports, all buildings owned by Air India and Indian Airlineso   
• IIMs, all UGC funded colleges and universities except those teaching science and engineeringo   
• Ministry Consumer Affairs and Public Distributiono   
• Ministry of Human Resource Developmento   
• Ministry of Information and Broadcastingo   
• Ministry of Information Technology
• Ministry of Rural Developmento   
• Ministry of Small Scale Industries & Agro and Rural Industrieso   
• Ministry of Social Justice and Empowermento   
• Ministry of Textileso   
• Ministry of Tourism and Cultureo   
• Ministry of Urban Development and Poverty Alleviationo   
• Ministry of Youth Affairs and Sportso   
• National Human Rights Commission (NHRC)
• Planning Commission
• NLRO will have NO jurisdiction over land plots owned by private persons or companies or trusts or land plots owned by State Govt or Cities or Districts. He will have no jurisdiction on plots used Military , Courts, Prisons, Railways, Bus Stations, Govt Schools till class XII and tax collection offices

(3.3)(procedure for PM, All officers) All IITs, NITs and IISc shall be made part of DRDO, and the DRDO director shall be the Chief Officer of these colleges or shall appoint Deputy Chief Officers in these colleges to run the day today operations. The colleges teaching science and engineering will come under Ministry of Science and will not come under NLRO.

Section-4 : Collection of rents from GoI owned plots

(4.1)(procedure for NLRO) For the unused land, NLRO will divide the land in plots of appropriate sizes as he seems most profitable. NLRO will hold auction for each plot. The conditions for auction will beo    The lease will be for 5, 10, 15 , 20 or 25 years as decided by NLRO. The lease cannot be more than 25 years.o    The bidders will give bids for monthly rent and bidding period which can be less than maximum lease period. So bids will be in (monthly rent , months lease) format. One person can submit multiple bids. Minimum lease period will be 12 months. o    The weight of the bid will Monthly_Rent / log(Lease_In_Months). i.e. more the rent, higher the weight and longer the lease, lesser the weight.o    The bids will be openo    The NLRO will give the plot as per weight of the bids.o    NLRO will charge 6 months rent or collateral as deposit. o    the tenant will be free to evacuate land any day and stop paying any rent

(4.2)(procedure for NLRO) During the lease time, NLRO will revise the rent every 3 years based on % change in the land prices in the 1sq km area around that plot and % change in prime lending interest rate from the day the plot was leased and the day when rent revision occurs.

(4.3)(procedure for NLRO) After the lease time is over, NLRO will hold a fresh auction, where in existing lease holder will get benefitso    his weight will get multiplied by 1.1 to 1.5 depending on number of years he has paid rent.o    he may increase his bid within 3 months after auction is over. o    the existing lease holder will get 20% to 50% the 6 months’ advance rent new lease holder is paying depending on number of months he had held the land.

(4.4)(procedure for NLRO) But if existing lease holder loses the auction, then he can move or sell the fixtures on that land. But he will need to vacate that land.

(4.5)(procedure for NLRO) If the plot is held by an existing entity, the entity will get 25% plus (25% * lease in months /300), maximum of 50% , bonus in the bid i.e. its bid will be multiplied with 1.25 to 1.50 , but no more.

(4.6)(procedure for NLRO)    If the plot is currently being used and occupied , NLRO will take the mean land price in past 3 years of sale in 1 km area round the plot and decide the price of plot and set (market_price * prime_interest_rate/3) as yearly rent for next 10 years. The rents will be revised every 3 years. After 10 years, rules stated from clause-1 onwards of this section will apply

(4.7)(procedure for NLRO) NLRO will give 34% of rent collected to Defense Minister for the purpose of strengthening Military and providing weapons and weapon-use education to all citizens.

(4.8)(procedure for NLRO) NLRO will dispatch 33% of the rent collected every month to the citizens residing in the State for past 10 years with limit of twice the amount received by citizens of India in last year. NLRO will dispatch rest of rent collected every month to the citizens of India.

(4.9)(procedure for NLRO) One year after this law is passed, the rent a person obtains o    will increase by 33% if he has no kids o    will decrease by 33% if he has more than (2 daughters, 1 son) or (1 daughter, 1 son) or 2 sons or 3 daughters and in which youngest kid is born 1 year after the law is passedo    will decrease by 66% if he has more than (3 daughters, 1 son) or (2 daughters, 2 sons) or (1 daughter, 2 sons) or 3 sons or 4 daughters and in which youngest kid is born 1 year after the law is passed

(4.7)(procedure for NLRO) The rent paid will be 33% higher for men above 60 and women above 55 ; and will be 66% higher for men above 75 and women above 70.

(4.8)(procedure for NLRO) No rent shall be paid to child below 7 years ; the rent to citizens between 7 to 14 will be 1/rd the normal and between 14 and 18 will be 2/3rd of the normal rent paid. .

Section-5 : Collection of Mineral Royalties

(5.1)(procedure for All Dept Secretaries) All the Department Secretaries who are in-charge of mines or crude oil wells or collecting royalties from mines or crude oil wells are ordered to send the royalties collected to NLRO

(5.2)(procedure for NLRO) The NLRO shall divide the royalties amongst Military, the citizens residing in the State and citizens of India in the same ratio as Land Rent described in the Ordinance dealing with distribution of Land Rent

Setion-6 : Citizens’ voice

(6.1)(procedure for  District Collector) If any citizen wants a change in this law, he may submit an affidavit at DC’s office and DC or his clerk will post the affidavit on the website of Prime Minister for a fee of Rs 20/- per page.

(6.2)(procedure for  Talati or Patwari)    If any citizens want to register his opposition to this law or any section or wants to register YES-NO to any affidavit submitted in above clause, and he comes to Talati’s office with voter-ID and pays Rs 3 fee, Talati will enter YES/NO and give him a receipt. The YES-NO will be posted on the website of the Prime Minister.

====

5.13    Please note the last two clauses of the PM-RP law I have proposed

Please note the last two clauses of the draft proposed above. These two clauses are nothing but RTI2. Every draft of mine has these two lines repeated. Why this repetition? Symbolic value apart, the repetition has political value. It may happen that an MRCM activist has to confront an anti-MRCM intellectual. Then MRCM activist can challenge him to provide the drafts of the laws he wants, and then ask them to add the lines 6.1 and 6.2. If the adversary opposes the last two lines’ additions, then he can be accused of being anti-common. And if he accepts these two line addition, then effectively his proposed law implements RTI2, using which MRCM law can be brought using citizens’ YESes.

The two line addition shows that “demand for RTI2” is not just a clone positive concept but RTI2 is a law that can be added to any law and, and once that law with RTI2 addition is passed, these two clauses can be used to bring all 200 laws I have proposed. RTI2 is a self-germinating i.e. even if all laws are bad, but one law has two RTI2 clauses, then all good laws can be enacted. And the two line addition is sufficient to thwart any undemocratic law. Because if an undemocratic law has these two lines, it will get rejected in few days or weeks by citizens.

====

5.14    Cost of dispatching payments to 110 crore citizens

How easy/difficult it is to dispatch land rent and mineral royalties to 110 cr commons? This task can be done using Universal Banking System (described later) in which every citizen will have exactly one citizen-account in State Bank of India (or a Govt Bank or Post Office) at the branch of his choice. The amount dispatched by NLRO will be added to the citizen’s account and withdrawal can be done at most once a week in denominations of Rs 100/- with maximum of Rs 1000/- a week for free. The account owner will need to bring his passbook with photo and the cheque with signature and thumb print to be put in from of cashier and camera inside the bank. With this very restricted procedure a cashier can give out 30 payments per hour or about 200 persons in his 8 hour shift or about 5000 payments in a month. So to deliver one payment a month to 110 cr citizens, the SBI would need 110cr/5000 = about 220,000 cashiers. Further, till a child is of 14 years, the payment will go into parents’ accounts and so the number of clerks required will reduce by about 30% to 160,000 clerks. IOW, using about 160,000 cashiers India wide , some 10000 supervisors and 10000 other staff, it is possible to dispatch 110cr payments every month. And as ATM become more widespread, this number can be decreased and number of cash-outs per month can be increased.

To decrease impostering, the persons in a locality may form a group of at least 10 person and maximum of 20 persons to be referred as “group of reciprocal witnesses”. If the person is member of group of 10, then restriction is that at least 5 persons in that group must accompany him when he goes for withdrawal. In general, all ten will go for withdrawal on the same day and same time. If the person is part of such group, everyone in group will get the amount at together and thumb prints of five mutual witnesses will be taken on the payment receipt.

One argument I get against MRCM is that managing a network of 200,000 clerks will be impossible and so instead the money should be spent in education, health etc. Well, to teach 25 cr kids between age of 5 and 17, we would one teacher per 100 students at least i.e. 25 lakh teachers. The floor space needed in schools needed will be at least about 1 sqm per student i.e. 25 cr sqm of floor space. To serve 100 cr citizens in Hospitals, we would need at least one doctor per 2000 citizens i.e.500,000 doctors and about 10,00,000 nurses. In addition, we would require 1000s of buildings for hospitals. IOW, providing education to 25 cr students and health to 100 cr citizens requires 20-100 times more staff than staff to dispatch 100 cr rent payments. So while I do support education, health etc. I see no need to cancel the “rent dispatch” scheme on the grounds of “number of clerks” needed. The number of clerks needed to 100 cr payments every month dispatch payments is no more than 200,000 and is far less than alternative schemes.

========

5.15    Wont this decrease Govt income? NO

If all mineral royalties go to citizens, wont Government fall short of funding?

First, as per my proposal, the 33% of mineral royalties do go to Government (Military), which can be seen as 33% income tax on every common and his income from mineral royalties and land rent. Now this 33% will INCREASE after 67% goes to citizens. How?

Consider mineral royalties today. Today, for a granite block that is worth Rs 100 in market, whose extraction and transportation cost is below Rs 10, Govt gets royalties of Rs 5 or even less. Why are the bids so low? Because the local mining contractors hire criminals to ensure that more miners cannot come and bid in the Collectors’ offices to submit the bids. But the criminals are able to operate ONLY because they have support of MLAs, MPs, Ministers, CMs, PM, IPS, IAS and relative lawyers of the judges. IOW today, using criminals, MLAs, MPs, Ministers, CMs, PM, IPS, IAS and relative lawyers of the judges ensure that lions’ share of deemed royalties come into their hands via the mine contractors and criminals they bless. Now today, I activists were to tell commons that commons should fight against these Ministers, IPS, IAS and judges’ relative lawyers, then two key questions arise –

1.    how can a common fight? and

2.    why should a common risk his lives or spend time to do so?

The name MRCM-Recall answers both these key questions. MRCM answers the second  question : if mineral royalties are going to citizens then the citizens have reason to ensure that criminals who stop good mining contractors getting killed or imprisoned. And the Recall answers the first question : using Right to  Recall over Policemen, judges, CM etc the citizens can ensure that police chiefs, judges, Ministers who promote criminals are replaced ASAP by individuals who are pro-common. So “MRCM-Recall” will increase the mineral royalties to several fold, and that will also increase the royalties that Military gets. Thus, the sum total of govt income from minerals will increase from MRCM, NOT decrease.

In the same way, consider the issue of Govt plots. Today, PM, CMs give away a large number of GoI plots for a price fraction of market price. The Right to Recall CMs, RTR-PM  provides means by which citizens can stop this. And MRCM i.e. giving land rent to commons and Military gives a reason to citizens to stop this. Every time, a CM, PM rents out the land for rent below market value, the citizens will feel a loss, and when the loss exceeds some tolerance amount, they will spend Rs 3 file for an approval and replace him. Or better, fear of replacement and subsequent punishments will put a check on CMs, PM while doling away lands for bribes. So the net rents will increase and so the 1/3rd of the rent that goes to the Govt (Military) will also increase.

So MRCM-Recall proposals increase the net Govt incomes from minerals and land rent – they do not decrease it. It also increases the incomes of the commons. Then who loses? The criminals and mine contractors will be small losers --- the real losers will be IPS, IAS, Ministers, CMs, PM, super elitemen who own huge mine, relative lawyers of judges etc. And those who oppose MRCM-Recall proposals, are only benefiting the criminals, mineral ore contractors, IAS, IPS, relatives of judges, super elitemen who own huge mines etc and no own else. Many intellectuals are on their payrolls and so vigorously oppose MRCM-Recall proposals to serve their interests.

=====

5.16    West has no such MRCM law. Why do we need it?

I have been campaigning for the procedures by which we commons can expel PM, CMs and judges. All eminent intellectuals have opposed this demand and tried tooth and nail to show that it is unconstitutional. Having failed, they say “West does not have this procedures to give Royalties to commons and so why should we have this procedures?”

Well, US has income tax of 40% to 50% with low evasion and few exemptions. US also has about 1% wealth tax on lands. And US has 45% of inheritance tax upon death. The  taxes are used for welfare schemes and benefits do reach commons, as Jury System has ensured low corruption. The Indian intellectuals opposed wealth tax, high income tax and is dead against inheritance tax and so funds allocated to welfare is next to nothing. And Indian intellectuals also killed Jury System in 1956, and so corruption runs amok and funds get siphoned out. I have proposed 30% income tax, 2% wealth tax and 35% inheritance tax to improve Military, Military Industrial Complex, engineering education and general education needed to manufacture weapons. And I have also proposed Jury System to reduce corruption so that delivery improves and poverty reduces. But this method of reducing poverty and poverty deaths will take years. Whereas giving mineral royalties to us commons directly, reducing poverty and poverty deaths is possible within mere 4 months.

=======

5.17    MRCM draft and human rights

About 1 cr persons die every year in India --- well death is natural. But if they had Rs 100 per month more food and medicine, at least 5-20 lakhs of the 1 cr who died last year could have lived 2-10 years longer. Some 55 out of 1000 children born last year in India died, where as this number was 23 in China and 5 in Cuba. The number 55 per 1000 translates into 11 lakhs in year 2007. So out of these 11 lakh infants who died in 2007 in India, at least 5 lakhs could have been saved if their families had a few hundred rupees a year extra to spend on food and medicine.  

IOW, as of now in India, poverty is the biggest killer and biggest violator of human rights. One economists once said that a bomb death gets more attention than 10000 hunger deaths. That is mainly because newspapers are written by 0.01% of Indians and only top 15% population in India reads them. A bomb may hurt them but hunger is too remote for them. Which is why intellectuals, NGOs and media-owners and media-readers insist on focusing on individuals cases and insist on defocusing poverty, poverty  deaths.

MRCM draft is the most landmark demand in human rights, as this reduces the number of deaths that occur due to lack of money to buy food and medicines. Sadly, all intellectuals have opposed this demands and IMO, activists should shun these eminent intellectuals for good.

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

5.18    Land rent and comparison with Communism

Many equate the MRCM proposal to give mineral royalties and land rent from GoI plots to commons with Communism. The MRCM proposal has nothing to do with Communism. Following are the differences

# ----   MRCM   ----  Communism

1. ----   MRCM was first proposed in oct-1998, but the proposal that land rent from private as well as Govt plot should be collected and divided amongst all citizens was given by Thomas Paine in 1790, some 28 years before Marx was born  ----   Marx was born in 1818, and words such as Marxism , Scientific Communism etc came into existence into 1850s

2. ----   MRCM confines to Govt owned plots and minerals, and has nothing to do with ownership of factories. In fact, MRCM encourages private ownership of factories so that bid amounts for plots and minerals increases ----   In Communism Govt owns all factories.

3. ----  MRCM is a coded proposal ----   Communism is a vague concept and has dozens of meanings, and none has procedure code attached to implement it.

4 ----   In MRCM , rent directly goes to citizens. ----   In Communism, the land is given to a Govt unit and is either not collected at all, or when given to private body, it is collected and used by discretion of Ministers, officers, judges.

Suffices to say that there is no similarity between MRCM and communism.

=========

5.19    Ethical arguments wrt MRCM

I explain ethical issues wrt MRCM as follows : Consider a pond where 1 crore liters of rain water falls every year and there are 100 persons in the village. Who should get how much of water? Since no one does any labor to fill the pond, no one has more right than others and thus all have equal rights and thus all should get 100,000 liters per year. By same logic, each citizen has equal rights over mineral royalties.

The ethics over distributing land rent on Govt plot is as follows

1. Say a person owns a plot/flat. Then who should get rent coming from that plot/flat? Obviously the owner
2. Say the plot/flat belongs to 10 persons, then who should get the rent? Obviously, all 10 in the ratio of their ownership.
3. Say the plot/flat belongs to some large company like Reliance with say 3 crore shareholders. Then who should get the rent from that plot/flat? Obviously, all 3 crore shareholder in the ratio of their ownerships.
4. Now consider plot of Delhi Airport. It belongs to 120 crore commons of India. And so the land rent should come to all of us 120 crore commons.

Now are citizens owner of the Delhi Airport plot or is Govt or State of India owner of that plot? I don’t want to argue this question. If someone says that the plot does not belong to citizens of India, and belongs to State or India or Govt of India, I have only insults, no arguments, for him. After all, if someone walks into your home and tells you that your home doesn’t belong to you, then IMO, you will offer insults and not argument. Same way, I claim that all non-private plots in India are property of us 120 cr commons of India, and if anyone differs, I have only insults for him.

But to keep courts out of it, I propose that citizens should force MPs to add a line in Constitution which declares citizens as joint owners of all non-private plots. Once this line is added in Constitution, the debate will formally end.

========

5.20    What great men said on rents/ownership of plots

Atharvaved says : Aham Rashtrim Vasunam Sangamani i.e. I the nation own the natural resources. Thomas Jefferson, the second President of USA said

"It is a moot question whether the origin of any kind of property is derived from nature at all... It is agreed by those who have seriously considered the subject that no individual has, of natural right, a separate property in an acre of land, for instance. By an universal law, indeed, whatever, whether fixed or movable, belongs to all men equally and in common is the property for the moment of him who occupies it; but when he relinquishes the occupation, the property goes with it. Stable ownership is the gift of social law, and is given late in the progress of society." --Thomas Jefferson to Isaac McPherson, 1813.

The founding father of USA, Thomas Paine, in 1790, in his landmark essay Agrarian Justice said that rents from ALL plots, be private or Govt owned, should be collected and divided amongst citizens !! So ownership of land is something that has been very controversial topic since long and many great men have opined that Govt plots belong to all citizens equally. MRCM is an extension of that idea.

======

5.21    How can YOU help in bringing MRCM law in India?

Please read chap-13 of this book rahulmehta.com/301.pdf  . It has several steps where-in you can spend 4 hours a week and help to bring Right to Recall law-drafts in India.

=======

5.22    Exercises

1. How much was crude oil production India in 2008? Assuming cost of production did not change in 2008 from that in 2006, and if $135 per barrel was collected from buyer, how much money would citizens of India get, as per your estimate? And if $50 per barrel was collected from buyer, how much money would citizens of India get, as per your estimate?
2. What is the land area of Mumbai airport? What is the approximate price per square meter? How much would citizens of India get if rent is 3% a year of the market value?
3. What is land area of the largest university in your district? How is approximate price of the plot and rent per citizen of India assuming rent rate of 3% of value a year?
4. Does Indian Budget consider land rent deemed as subsidy?
5. Why do intellectuals of India insist that we commons MUST not get mines’ royalties directly and get it only via schemes?
6. Why do intellectuals of India insist that we commons MUST not get land rents directly and get benefits only via schemes?