The Indian government has decided to craft a ‘perfect’ exploration licensing regime which will unify and simplify the policies for oil and gas, coal bed methane and shale. Such a move is designed to eliminate the ‘cost recovery’ factor that is at the root of troubles and dispute with Reliance
There is a lot of confusion and contradictions, apart from compromising factors, which are involved in the government’s move to finally nail down an "acceptable" price formula for gas produced in the country. It is interesting to bear in mind the price of gas, which began at $2.40 per mmBtu and then moved on to $4.20. Later, when the group of ministers (GoM) deliberated over the Rangarajan Committee's recommendation, which proposed an $8.40 per mmBtu, Veerappa Moily, the petroleum minister came out with a compromise formula price of $6.67. But, this was overruled and the price of $8.40 per mmBtu was fixed effective from April 2014.
In the meantime, the actual output of gas, which was projected to reach 80 mmscmd had climbed down to a trickle at 14 mmscmd by 2013. These are the production figures of KG-D6 of Reliance, who has been demanding a higher price, attributing the fall in production to technical difficulties faced, almost suggesting that the well is drying up. They would rather call this a "geographical surprise". And, it may be so.
It is sad but the fact remains that technical assessments made by Reliance were submitted to Director General of Hydrocarbons (DGH) and additional data that its experts sought from time to time from Reliance were also provided. DGH neither challenged Reliance’s stand nor gave its concurrence.
Therefore, it would appear, prima facie, that DGH collected a lot of data but did little on their own to verify the claims made. Third party "technical" experts who made independent surveys at site did not even indicate the prospect of drying up so soon. Regrettably, even now, we do not know whether it is a fact or not.
But the fact remains that, as the fall in production began to be noticed, Reliance did not apply any efforts in drilling up new wells and got bogged down to discussions with the government on the appropriation of expenditures—the cost recovery factors!
In the interim, the hardest hit was the fertiliser industry, the backbone of this agrarian country. Both fertilisers and diesel oil used to pump out water in the field are heavily subsidised, with the total exceeding a few billion dollars annually. To feed the fertiliser units, LNG (Liquefied Natural Gas) has to be imported at enormous costs - between three to four times the local prices.
The fertiliser industry needs 47 mmscmd, of which one third, or 16 mmscmd, came from ONGC and Oil India Ltd, with the balance to be supplied by Reliance. So, when
Reliance could not do so, LNG had to be imported at higher prices and supplemented by direct import of fertilisers too.
The power generators, who still get some "gas" have sensibly moved to a greater dependence on indigenous coal supply, supplemented by imports from Indonesia, Mozambique and Australia. LNG, again, has become another standby source for them, at higher cost.
Set against this background, now the government has decided to craft a "perfect" exploration licensing regime which will unify and simplify the policies for oil and gas, coal bed methane and shale. Such a move is designed to eliminate the "cost recovery" factor which is at the root of troubles and disputes with Reliance. No time frame has been set for this regime to be announced, and it remains to be seen how the main producers react to this policy. Also, more importantly, we need to wait and watch how this policy is welcomed by foreign investors.
As mentioned before in these columns, the government needs to direct the environment ministry, Ministry of Environment and Forests, to tweak their policies to permit all oil and gas producers to increase their production from existing sources and take on war footing to explore new areas.
This will take us to Cairn India who has been waiting for months to increase their production, but have been waiting for "clearances"; so are others like ONGC, Oil India and Gujarat State Petroleum Corporation (GSPC). Reliance has been waiting for the price increase and cost recovery clearances.
All these are contingency measures. In the long term, the serious issue is whether India should plan expansion of fertiliser units in the country? No, far from it. If anything, they need to rethink, seriously, in terms of joint ventures in Qatar, Oman, Nigeria, Iran, Iraq, Saudi Arabia and the United Arab Emirates. While Qatar and Oman are already supplying urea, what is required is to increase this production and also set up new units to cater to the Indian needs in the years ahead. This would help these countries to industrialise and also use the gas domestically, thus avoiding the need to ship it to India.
Likewise, it would be prudent to obtain shale oil and gas from USA and Canada rather than making plans to explore the prospects in India. The only exception will be the Coal Bed Methane, which is going waste, untapped, provided there are no un-surmountable environmental obstacles.
It would be in national interest to handle all these matters on a priority basis not just by pushing them around to set up various groups and committees for discussions. All matters related to this industry cannot wait and be subject to inordinate delays in deliberations that we have experienced so far.
Finally, the price factor should be based on the national currency called the "Rupee", and not the Dollar, and a compromise solution applied for the unsupplied portion of gas from Reliance, because they may have genuinely faced obstacles from Mother Nature, on which no one has any control! In the process of doing so, the DGH needs to be manned by truly qualified and experienced people of international repute and standing as this department needs to be overhauled completely.
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)
The core issue is: Will efforts to undermine the fundamental right of Indians to move and transact freely around the country and to live without constantly having to prove who they are, succeed or fail?
Ever wondered as to why bankers are immensely interested in biometric identification and verification of citizens? Biometric identification implies that movements of present and future generations of citizens are tracked like those of bacteria under a microscope. This exercise of creating a centralised ‘online database’ of biometric information of Indians is unfolding under the supervision of Planning Commission’s Nandan Nilekani and Home Ministry’s C Chandramouli. The core issue here is: will efforts to undermine the fundamental right of Indians, to move and transact freely around the country and to live without constantly having to prove who they are, succeed or fail?
What is ironical is that while it is inevitable that no centralised electronic database of biometric information can be made leak-proof in the post Wikileaks and Edward Snowden world, bankers, biometric technology companies and their collaborators are marketing it as an answer to increasing demand for identity proof and identity protection from citizens.
In 1998, National Biometric Test Centre, San Jose State University set up by the Biometric Consortium, which is the US government interest group on biometric authentication was asked to testify to the USA’s House Committee on Banking and Financial Services hearing on “Biometrics and the Future of Money”. This testimony of 20 May 1998 was reprinted under the title, “Biometric Identification and the Financial Services Industry”. This centre emerged from a meeting of Biometric Consortium held in 1995, at the FBI training facility. This test centre has defined biometric authentication as “the automatic identification or identity verification of an individual based on physiological and behavioural characteristics”.
Whatever is happening in India is an exercise in imitation of what was attempted in the US. There was bitter opposition to what was attempted in the US through the REAL ID Act of 2005. The US Senate never discussed or voted on the REAL ID Act specifically and no Senate committee hearings were conducted on the REAL ID Act prior to its passage, exposing its undemocratic character and the Bill's proponents avoided a substantive debate on a far-reaching piece of legislation by attaching it to a "must-pass" bill. Barack Obama categorically opposed it during the 2008 presidential election campaign. As of 2008, all 50 states have either applied for extensions of the original 11 May 2008 compliance deadline or received unsolicited extensions.
As of October 2009, about 25 states from the US have approved either resolutions or binding legislation not to participate in the program. Among other concerns they have argued that it infringes upon states’ rights. With Janet Napolitano, a prominent critic of the program as the head of US Department of Homeland Security (DHS), the future of the law appears sealed. On 5 March 2011, the DHS postponed the effective date of the REAL ID Act. Through Document Number FR 5-08, DHS announced that US states would need to be in compliance with the REAL ID Act by 1 December 2017. Bills have been introduced into US Congress to amend or repeal it. The controversial, $4 billion REAL ID initiative was meant to provide secure licenses in the hands of 245 million Americans by 2017. The new proposal, Providing for Additional Security in States’ Identification (PASS ID) Act is expected to eliminate many of the more burdensome technological requirements. The BILL is meant to repeal title II of the REAL ID Act of 2005 and amend title II of the Homeland Security Act, 2002, to better protect the security, confidentiality, and integrity of personally identifiable information collected by states when issuing driver’s licenses and identification documents, and for other purposes.
It is surprising as to why Government of India, which has been keen on emulating REAL ID Act when it was adopted in the US, has developed cold feet in following the same example when it is practically abandoned there.
In India, when one looks at the definition of the “biometrics” which “means the technologies that measure and analyse human body characteristics, such as ‘fingerprints’, ‘eye retinas and irises’, ‘voice patterns’, ‘facial patterns’, ‘hand measurements’ and ‘DNA’ for authentication purposes”, as per Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011 under section 87 read with section 43A of Information Technology Act, 2000, it becomes clear that the plan of data collection does not end with collection of finger prints and iris scan. It goes quite beyond it.
The fact remains biometric data like finger print, voice-print; iris scan and DNA do not reveal citizenship. Use of biometric technology, an advanced technique for the identification of humans, based on their characteristics or traits is unfolding. These traits can be face, fingerprint, iris, voice, signature, palm, vein, and DNA. DNA recognition and vein recognition are the latest and most advanced types of biometric authentication. Biometric technology is being deployed in the application areas like government, travel and immigration, banking and finance, and defense. Government applications cover voting, personal ID, license and building access whereas travel and immigration use biometric authentication for border access control, immigration and detection of explosives at the airports. Banking and finance sector use biometric authentication for account access and ATM security.
The International Biometric Industry Association (IBIA) has listed potential applications including voter registration, access to healthcare records, banking transactions, national identification systems and parental control. Indeed, “Biometrics are turning the human body into the universal ID card of the future”. Unmindful of dangerous ramifications of such applications, if citizens and political parties concerned about civil liberties do not act quickly enough, biometric ID’s are all set to be made as common as email addresses without any legal and legitimate mandate. Biometric information includes DNA profiling wherein biological traits are taken from a person because by their very nature are unique to the individual and positively identifies that person within an ever larger population as the technology improves.
In its 13 April 2013 report titled ‘Regional Economic Outlook, Asia and Pacific Shifting Risks, New Foundations for Growth’ as part of World Economic and Financial Surveys, the International Monetary Fund (IMF) notes that “India is planning to enhance its existing cash transfer program and identification system in connection with the ongoing subsidy reform”.
Elaborating it further, the report states, how “India has also been rapidly expanding its biometric uniform identification system (Aadhaar), which will establish an accurate and paperless means of identifying all Indians by 2014. This program will also present large opportunities for savings. A nationally uniform, biometric database would cut down on leakages from outdated biographical information, ghost identification, double registration, and other losses, which have been estimated in the range of 15%–20% of total spending.”
Underlining the convergence underway, it says, “The integration of these two programs, Aadhaar and direct cash transfers (DCT), promises further savings but will involve many challenges: the timeframe for bringing India’s population of 1.2 billion into the UID program could extend beyond 2014, and integrating this database with information on individuals eligible for subsidised fuel will take time. Shifting the fertiliser subsidy from companies to individual farmers and building up the capacity to deliver payments electronically could also be challenging in such a large country. But the total savings could be substantial: if the combination of direct cash transfer and Aadhaar eliminates the estimated 15% leakage cited above for the programs being integrated, savings could total 0.5% of GDP in addition to the gains from the better targeting of spending on the poor.”
Such claims are figments of IMF’s imagination unless the total estimated budget of the UID/Aadhaar project is disclosed. It is irrational for anyone to reach inference about benefits from any project without factoring in the costs, but World Bank (WB) Group is doing it and endorsing similar acts by UIDAI.
Not surprisingly, having applauded both biometric identification and cash transfer, the WB group President Jim Yong Kim underlined the importance of the subject in his opening remarks at the Bank's Development Economics Lecture series on 24 April 2013 in Washington. Nandan Nilekani, the chairman of Unique Identification Authority of India (UIDAI) and former chairman of Infosys Technologies also spoke there about the unique system for the biometric identification of Indian residents. It may be recalled that Robert B Zoellick, the then World Bank Chief met the chairman of the UIDAI on 4 December 2009. What transpired at these meetings is not in public domain.
In the aftermath of these meetings what is least talked about is that the e-identity and UID/Aadhaar-related projects are part of World Bank’s e-Transform Initiative formally launched on 23 April 2010 for converging private sector, citizen sector and public sector and Interpol’s e-identity database project. This, along with the then union finance minister, Pranab Mukherjee’s announcement on January 2011 voluntarily seeking full-fledged Financial Sector Assessment Programme by IMF and the World Bank, merits attention of the legislatures and concerned citizens.
On April 2010, L-1 Identity Solutions Inc, which has now been purchased by biometric technology company Safran group, a French corporation signed a Memorandum of Understanding (MOU) between L-1 and the World Bank was signed as part of the launch of the initiative at a World Bank Spring Meeting event attended by many developing country ministers of finance and communications. It claimed that this collaborative relationship with the World Bank is meant to improve the way governments in developing countries deliver services to citizens as part of the launch of the World Bank eTransform Initiative (ETI).
The World Bank's ETI seeks to leverage Information and Communication Technology (ICT) to build a knowledge sharing network that helps governments of developing nations to leverage the best practices of practitioners like L-1 and others to improve the delivery of social and economic services. The knowledge sharing network will focus on areas such as electronic Identification (eID), e-Procurement, e-Health and e-Education; areas vital to promoting the participation of citizens in democratic processes, such as voting, and helping undocumented citizens get access to health and welfare programs. The World Bank is currently funding 14 projects related to e-government and e-ID around the world. Are citizens supposed to believe that the World Bank Group is working to ensure that India's national interest and its citizens’ rights are protected?
"The speed and precision with which developing countries administer services is dependent upon many factors, not the least of which is the ability to verify the identities of those receiving services," said Mohsen Khalil, Director of the World Bank's Global Information and Communication Technologies Department in a statement.
Robert V. LaPenta, Chairman, President and CEO of L-1 Identity Solutions had said, "We believe that identity management solutions and services can make a significant contribution to society and undocumented citizens in developing countries, bringing them out of anonymity and helping establish their place and participation in society and affirming their rights to benefits they are entitled to receive as citizens."
It has been underlined that the “game-changing UID applications in payments, savings, and other tools for driving efficiency and transparency” using “already created one of the world's largest platforms (that is) transforming not only authentication but also everything from government payments to financial inclusion”. In effect, it is a case of biometric profiling by the IFIs who have vested interest in surveillance of financial transactions.
In his book ‘Imagining India’, Nilekani refers to Bank’s economist, Hernando de Soto's book 'The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else' to argue that national ID system would be a big step for land markets to facilitate right to property and undoing of abolition of right to property in 1978 in order to bring down poverty! In the post-capitalist and post-socialist era, such assumptions of triumph have been found to be deeply flawed. In fact, even the title of the books sounds weird in the post-financial crisis era.
In the Parliament, on 23 April 2013, Abdul Rahman, MP asked the Union Minister of Home Affairs about the percentage of the population covered under UID (Aadhaar), National Population Register (NPR) and Voters Identity Card, so far and the areas where information provided in these UID (Aadhaar), NPR and Voters Identity Card overlap; and the steps taken to avoid overlapping of the information contained therein. The reply was given but what it did not disclose is that the overlapping is deliberate because the real motive of the entire exercise is to ensure convergence of all pre-existing databases and the databases under creation as envisaged by the IFIs.
In his written reply, RPN Singh, Union Minister of State in the Ministry of Home Affairs informed the Parliament, “As per the Electoral Roll data 2012, the Election Commission of India has 75.84 crore registered general electors in India.’ He admitted that “the five demographic fields Name, Address, Gender, Age, Name of father/mother/guardian and the photograph are common.” It is not common as it provides the route for convergence.
It does not appear to be a coincidence that France-based Ronald K Noble, Secretary General, INTERPOL, and world’s largest police organisation too has called for global electronic e-ID identity card system. When Nilekani was asked about the relationship of UID/Aadhaar with the National Intelligence Grid (NATGRID) in an interview by Hard News magazine, his reply was “No Comments”. Isn’t global electronic e-ID identity card system proposed by INTERPOL, e-Identity project of World Bank Group and UID/aadhaar related databases linked? Is “No Comments” a convincing answer?
Biometric documentation of undocumented citizens in developing countries which is underway in some 14 developing countries under ETI is aimed at bringing them out of anonymity, without any legal mandate. Such documentation of sensitive data of citizens facilitates bullying and invasiveness by the state and international financial institutions.
Identifying citizens biometrically is an exercise in empire building by ‘commercial czars’ and turning citizens in to serfs. Modern day Jaichands, Mir Zafars, Jeewan Lals and Mirza Ilahi Bakshis are collaborating to help empire builders to earn myopic rewards through attempts to compromise citizens’ sovereignty for good.
The journey of biometric identification and numbering of Indians commenced a year after the first war of India’s independence was brutally suppressed by the army of British East India Company, with the help of collaborators like Jeevan Lal, Mirza Ilahi Baksh and Rajab Ali. The first systematic capture of hand images for identification purposes "was" initiated by William Herschel, a civil servant in colonial India in 1858. It is noteworthy that in 1898, Edward Henry, inspector general of the Bengal Police established the first British fingerprint files in London.
Referring to the British victory over Indians in 1857, William Howard Russell of London Times wrote: “Our siege of Delhi would have been impossible, if the Rajas of Patiala and Jhind (Jind) had not been our friends”. The seize of the database of personal sensitive biometric information of all the Indians would have been impossible but for the help of ‘commercial czars’ like Nilekani and the complicity of civil servants like C Chandramouli, the Census Commissioner and Registrar General of India responsible for biometric National Population Register (NPR).
Occupy Wall Street Movement has a pithy slogan: ‘Empire is on the Wall Street’. The exercise of biometric identification of citizens is a comprehensive intelligence initiative with financial surveillance at its core. The personal sensitive information like biometric data that is collected in myriad disguises and through numerous tempting claims about its benefits is going to be purchased by banks and other financial institutions to be correlated with other data, and used for purposes that was neither agreed nor foreseen. This data is bound to be stolen or illegitimately released, exposing citizens to risks of profiling, tracking and grievous embarrassments as has happened in the case of Greece, Egypt, Pakistan and UK.
So far legislators and citizens have failed to bring World Bank Group and other international financial institutions under legislative oversight. A situation is emerging where if the pre-existing databases like electoral database, census and other databases which are under preparation is converged, these unaccountable and undemocratic financial institutions will never come under parliamentary scrutiny. The identification and surveillance technology providers are appear to be aiding an empire of a kind where every nano activity is under the vigilance of the Big Brother.
The flawed assumption of Government of India that the benefits of biometric systems are sufficient to warrant use of biometric technology for financial transactions is misplaced. The citizens who are succumbing to such presumption are doing so because they are not informed about potential risks. The blatant use of financial rewards akin to bribes to promote citizen’s participation in biometric identification programs sets a very harmful precedent as it violates the principle of free and informed consent. Informed citizens and democratic legislatures can respond to it only through non-cooperation, civil disobedience and voting against parties which support the banker-biometric technology vendor nexus.
(Gopal Krishna is member of Citizens Forum for Civil Liberties (CFCL), which is campaigning against surveillance technologies since 2010)
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