Essential drugs will be cheaper now

On November 22, 2012, Cabinet approved the new national pharmaceutical policy which will bar the
rising prices essential medicines. There are 348 medicines which are enlisted in the National
List of Essential Medicines. The new drug policy will restrict the manufacturer from selling
the essential medicines which are used by the majority of population in India with high profit
margins. It is also expected that with implementation of new policy prices of drugs will be
slashed by 50% to 80%. Indian pharmaceutical market which is world’s third largest in terms of
volume has given mixed responses to the new drug policy.

At present Ministry of chemicals and fertilizers controls the prices of only 74 essential drugs
which were 347 in 1979 when the first time Drug Pricing Control Order was implemented. The
idea of drug price controlling was inspired from the concept of essential medicines formulated by
World Health Organization in 1977. Latest approved policy will allow the government to control
the prices of 40% of the drugs sold in India. The Supreme Court of India in October this year
after hearing PIL filed by a NGO (All India Drug Action Network) asked the government to set
up a drug price regulation mechanism. In response to the directions of apex court a GoM was
also formed headed by Agriculture Minister Sharad Pawar. Pharmaceutical industry took this
decision with mixed response but with a common concern that it will encourage disinvestment.
Indian Pharmaceutical Alliance (IPA) Secretary General told PTI that industry profit will
come down to Rs 4000 crore from Rs 67,500 crore. However, credit rating agency ICRA have
expected long term profits for multinational companies in the purview of new drug policy.

The health services which has been critically ill and of poor quality. Moreover, costly medicines
hits sharply to the hard earned saving of a common man. Government which falls way short in
providing basic amenities like proper public health care systems have finally took a reformist
decision. Market experts are eying this as a sort of relief when the escalating prices of all most
everything are burning the pockets of common man.

Unique Identification Numbers for Common Citizen

A Conundrum reply to age old administrative problems

Post 9/11 terrorist attack it was considered that having an identity proof can curb the growth
of terrorism. It was said that terrorist comes with Ak-47 not with identity proof. However,
the reality was bitter behind the curtains. Super power nation USA suffered the terrorism like
never before, the identity proof security flopped. Technical solution are impactful but in limited
space. The concept of Unique Identification number in India for every citizen is a huge project
because of its cost and impact. The ruling UPA made this project pro-poor scheme. Government
officials is singing about the advantages of this project that it will help to manage efficiently
welfare schemes such as the National Rural Employment Guarantee Act (NREGA), the public
distribution system (PDS), public health and financial inclusion. Whereas, the London School
of Economics in UK and IIM-Ahmadabad in respect to India have questioned the utility of
project under Unique Identification Authority of India (UIDAI) led by former CEO of Infosys
Nandan Nilekani.

In India thoughts for unique identity came after the Kargil war. After war, Kargil Review
Committee recommended the formula of ID cards to curb the infiltration in border areas. In
2003, NDA government launched “National Population Register” (NPR) and planned Multi-
purpose National Identity Card (MNIC). Since 2009, the same concept magnanimously operated
across the country. Till 25 October 2012 over 210 million people covering around 17% of total
population have been enrolled to UIDAI. Civil activist and retired Army officer Col. Mathew
Thomas said at a public consultation held in Bangalore last year that the functioning of UIDAI
in unconstitutional as the National Identification Authority of India Bill 2010 is still not cleared
from parliament. The future of UIDAI will remain uncertain in the absence legal powers. Public
distribution system will improve as targeted in the frame work of Unique Identification System is
also questioned by the Col. Mathew Thomas. He explained BPL families are dependent on ration
shopkeeper’s kindness and the shopkeeper can cheat with the card holder on the grounds of
authentication. Even bigger and unaddressed issue is of Identity theft. Developed countries that
already used such unique identity systems have no answer to identity thefts. There is no profound
and worldwide accepted safety system suggested by UIDAI. Many experts like Professor Ian
Angle from London School of Economics termed the UID system as “Olympics games of
hacking” on the data safety issues.

Besides all the controversies UID is the only and countries first nationwide accepted biometric
card which will carry all the crucial information of a citizen. If all went well UID seems to be
effective in curbing corruption at various levels by plugging the administrative leakages. At the
least one nation one identity issue will be solved. Goals linked with UID are very optimistic but
not impossible at all. Many policies and schemes which failed elsewhere have succeeded in India
UPA Government is hoping same.

Return of the ghost called FDI

Amidst controversies and oppose from outside the government, the Union Cabinet green singled
for foreign direct investment in different sectors. Despite of strong oppose from many allies,
UPA-2 moved ahead with the decision of allowing foreign investment of 51% in multi-brand
retail and 49% in aviation power exchange. Retail sectors giants such as Wall Mart, Tesco and
Carrefour are already enjoying Indian wholesale retail market in collaboration with Indian retail
companies.

With new economic reforms Government is all set to welcome foreign investors with open
arms. Now, it will be easier for foreign retailers to launch outlets in 51 cities with a minimum
population of 10 lakhs as per 2011 census. However, investment of minimum of $100 million
is must and out this, 50% must be utilized in establishment and development of backend
infrastructure as par new regulations. Central government played safe by making FDI optional
for states, considering the political stir against the FDI. Whereas, to cure the ailing aviation
sector, as per latest amendments foreign investors who are not associated with airline business
can buy up to 49% equity in Indian aviation companies. With Companies Bill, 2011 and Pension
Fund Regulatory and Development Authority Bill foreign investment in Insurance sector will be
now 49% from present 26%. To put the slowed Media industry on fast track government have
tried to boost the investment by increasing the cap of broadcasting service providers to 74% from
49%. This hike is for DTH service providers which will help in digitization of cable network and
in availing mobile television services. As per the Union cabinet’s decision TV news channels
and FM radio channels can draw the investment of 26% from foreign investors.

Foreign investment is less a part of economic reforms instead more of a political issue. Ruling
party is trying to convince common people and innocent voters to support FDI and vote for them
in coming elections and opposition is trying to turn the tide against the FDI. FDI is a frequently
debated issue which got its own political colors in India.

(Published In IAAN Express)

A Huge Setback for Community Radio

Ministry of Communication and Information Technology has quadrupled the royalty and
licence charges for community radio stations. In new regulations of the Wireless Planning
and Coordination (WPC) the operator has to pay Rs. 91,000 yearly instead of Rs 19700 for
broadcasting in the range of five to ten kilometres. In India there are 132 licensed community
radio stations which raise those issues which are under looked by the main stream media.
People who are operating community radio stations in India are either social worker or
NGOs. They are bounded by many broadcasting rules and regulations and have minimal
opportunity to raise fund to meet daily operational cost. Paying Rs 91,000 per annum as
royalty will be as bad as gagging the rural media. The rich and glamorised mainstream
media don’t have the space for rural and local issue. The community radio stations which are
covering news from grassroots will financially starve and eventually die because of this hike.

In 1990’s popular legal tussle between “Ministry of information and broadcasting” and
“Cricket association of Bengal” Supreme court said freedom of speech and expression also
include right to acquire and disseminate information and the airwaves are public property
which can be used be used for the benefit of society. This was a landmark decision which
have excited and encouraged those radio lovers and activist who wanted contribute in
development of society. In 2006, Ministry of Information and Broadcasting and Ministry of
communication worked in tandem to address the fundamental rights speech and expression
of communities making base article 19(1)(a) of the constitution. Community radios have
been successful in rural and remote areas for educating and awaking people at mass level
in a limited range. The success of such stations lies in the fact that it does not require
professionals whose motive is to run a station to earn profit. Radio enthusiast gets platform
to address people of their locality in the local language with via such non profitable radio
stations. The results which AIR and Doordarshan produced in the era of green revolution
and in later decades, is similar but of lesser impact as achieved by community radio stations.
But the hiked licence charges by government have literally discouraged and indirectly
barred community radio operators. Community Radio Forum (CRF) of India wrote to the
I&B minister Kapil Sibbal to reconsider his decision. Just hiked licence charges is not the
issue which should be addressed by the I&B but the whole set of new regulation which also
insist to give a bank guarantee of Rs 25000 while seeking a new licence. With the financial
hurdles, a new licence seeker should also have to get clearance from Standing Committee of
Frequency Allocation (SACFA), Wireless Operating Licence (WOL) and so on.

The Telecom Regulatory Authority of India (TRAI) in a position paper has once
recommended zero spectrum fees for community radio stations. However, instead of
supporting those who want to work for community development via mass media platform
government have made the road narrower then ever. Government should utilise community
radio stations as resource for development not for earning few pennies. Schemes like
ADHAR, MNREGA can be implemented more advantageously with proper communication
channels like community radio stations which are totally non-commercial. Government
can bank on the community radio stations for rural and community development instead of
bankrupting them.

(Published In IAAN Express)