modi psu privatisation nhai auction ppp tot bot project

The Narendra Modi government has failed to privatise any public sector undertaking (PSU). Its sale of minority stakes in several PSUs is disinvestment, not privatisation - the latter implying a transfer of management to a private sector party to gain efficiency and conserve government money for public goods. However, arguably, privatisation by another name is happening through the toll-operate-transfer (TOT) scheme for roads. Thirty-year leases of existing toll roads are being auctioned to private operators, who win the right to collect tolls, maintain the roads, and transfer them back to GoI after 30 years. At that point, a fresh auction will be held for another 30 years. By transferring management control from GoI to private parties, TOT fulfils a core requirement of privatisation, even though Modi has carefully avoided using that word. Doesn't take a toll This monetisation of government assets can be scaled up hugely to auction other forms of GoI infrastructure. This has already happened to some extent in airports. It can be extended to power plants, railways, ports, dams, canals and other infrastructure assets. That will raise large sums for much-needed investment in new infrastructure. The first TOT auction covering 698 km in Gujarat and Andhra Pradesh fetched Rs 9,681 crore last March, the winner being a joint venture of Ashok Buildcon and Australia's Macquarie. A roadshow for the second auction, aiming to garner at least Rs 5,362 crore, was launched on November 15, and the auction will be completed by December 5. It covers 586 km of national highways in eight sections across Bihar, Rajasthan, Gujarat and West Bengal. All auction proceeds will go into the building of fresh infrastructure. This will help to overcome the shortage of funds that has long plagued infrastructure. UPA 2 tried to tackle the resource constraint by promoting massive public-private partnerships (PPPs). This approach ended badly in major stranded and failed projects that cannot repay lakhs of crores borrowed from banks. Many PPPs suffered long delays in land acquisition, environmental and other clearances, and in getting coal linkages or rail connections. Historically, government infrastructure projects routinely suffered big cost- and time-overruns. Such projects were typically launched without land being acquired in advance or clearances being obtained for environmental and other reasons. The cost overruns were plugged by additional government money. But in PPPs, no additional government funds were available to meet cost overruns. Such projects depended heavily on debt, often to the tune of 70-80% of total cost. In such highly leveraged contracts, a delay of even 12 months could mean insolvency. The Supreme Court added to the problem by cancelling coal and spectrum auctions and banning iron ore mining in some states. Road traffic projections frequently turned out to be hopelessly inflated. In other cases, gas to be delivered by Reliance never materialised. Guaranteed delays An overarching reason for failure was also the winner's curse. The most optimistic bidders would win auctions with high bids that soon proved unviable. In the bad old licence-permit raj, companies aimed to get contracts by hook or by crook, and then manipulate politicians to amend and make the contracts profitable. Such manipulation ended with the Anna Hazare anti-corruption wave. Today, getting a project by hook or by crook can be a recipe for bankruptcy. Many early PPPs had a build-operate-transfer (BOT) framework. The private party would build the project, operate it for a fixed number of years, and then transfer it to the government. This was a seriously flawed framework. The highest risks, of delays in land, clearances and finance, were borne by private operators with limited finance that could not bear the cost of delay. By contrast, GoI, which had the greatest financial and risk-taking capacity, bore the least risk, as it collected auction money upfront and ultimately inherited a functioning project. This model needed inversion. The greatest risk, in clearances and construction, needed to be taken up by GoI. Indeed, many risks - such as delays in land acquisition and environmental clearances - were government-made. So, it was appropriate for GoI to bear the cost of the consequences. The private sector, with its limited financial and risk-taking capacity, needed to be assigned a less risky role. One riskless route was engineering, procurement and construction (EPC) deals, where GoI provided all funding, and the private parties simply executed government contracts. But GoI lacked money for such massive funding. Enter TOT. In this framework, GoI builds the project, operates it for 30 years, and then leases the project to private parties, who have the low-profit, low-risk task of operating and maintaining it for 30 years. TOT rectifies the deep risk-sharing weaknesses of BOT and regularly garners fresh funds for investment. Earlier, GoI focused on a reduced risk approach called the `annuity hybrid'. In this, GoI-owned National Highways Authority of India (NHAI) provided 40% of the cost upfront to a joint venture, plus an annual stream of payments linked to road traffic and maintenance. However, banks have not been enthusiastic. Reportedly, 64 out of 115 hybrid projects have failed to reach financial closure. Better models are needed, and TOT looks the most promising.

life insurance policy holder death claim 3 years disclosure medical history fraud

The initial three years in a life insurance contract between the life insurance company and the policyholder is an important milestone. While the rules allow insurers to repudiate (or reject) death claims within the initial three years of a life insurance policy on the ground of misrepresentation or suppression of a material fact, their hands are tied for repudiation of claims, if a death happens after this period. However, it is important for a policyholder not to take shelter under this 3-year clause as it might be a lengthy claim settlement process for the surviving family members if the case drags into the courts. Providing information Life insurance contracts are based upon the legal principle of 'uberrimae fides' (utmost good faith) and hence, the potential buyer of a life insurance policy is expected to disclose all material information honestly and accurately. At the time of applying for insurance, based on the information provided, the underwriters of the insurance companies see whether the individual buyer can be provided any coverage or not. In the absence of any such factual information, unhealthy lives may be covered posing a danger to the entire group of lives insured and may even violate contractual obligations. Importance of initial three years of a policy In case a claim rises during the policy period, the approach an insurer takes will largely depend on how long the policy has run. The regulation as per Section 45 of the Insurance Act allows insurers for calling a policy in question on the ground of misrepresentation or suppression of a material fact not amounting to fraud only within the initial three years of the policy. "The way the amended section 45 is worded today is that no life insurance policy can be called in question for any reason whatsoever after a period of 3 years from the date of commencement of risk or reinstatement or addition of rider. Therefore, a strict interpretation of the section would mean that even if there was a wilful non-disclosure, the right of denial of death claim is not available after the said period of 3 years," explains C.L. Baradhwaj, executive vice-president, legal and compliance and company secretary, Future Generali India Life Insurance. However, regardless of whether a claim has arisen or not and when it is intimated, once this period of 3 years is over, the policy cannot be called in question. The insurers are allowed to call in question a policy only within 3 years even if there is no death claim. Repudiation within 3 years If the policy is called in question within 3 years of date of issuance or date of commencement of risk, whichever is later, the insurer takes a decision to repudiate the policy on the ground of misrepresentation or suppression of the material fact made by the policyholder, and the premiums collected from the date of issuance till the date of repudiation shall be refunded. "Section 45(4) speaks about any incorrect statements or failure to disclose on the grounds other than fraud. Under such circumstances, by virtue of second proviso to section 45(4), refund of premiums have been advised, since it is a case of unintentional incorrect statements or non-disclosure," informs Baradhwaj. However, if a fraud is established by the insurer before the end of three years, even the premium is forfeited. "Suppression of material facts or misstatements on the grounds of fraud are covered under section 45(2) - where fraud is established, the claim can be denied and premiums paid can be forfeited," informs Baradhwaj. Fraud detected after 3 years There can be instances where a fraud is established after three years. Can the insurer still call the policy in question? "On a plain reading of the section, the right to call for policy "for any reason whatsoever" curtails all rights of the life insurer. However, the reality is that there could be fraudulent claims which can be reported even after 3 years, and the hands of a life insurer are tied after a period of 3 years," says Baradhwaj. Establishment of a fraudulent contract Mentioning all medical and health related information is an important disclosure made by the policyholder in the application form. Here's an example of a fraudulent application. "The life assured does not intentionally disclose about his pre-existing illness for which treatment was taken in a hospital for a period of say, 5 years, before taking the policy and which was not disclosed in the proposal form at the time of taking the policy. If the life insurer had known about the pre-existing illness, the life insurer could have rejected the proposal itself and policy would not have been issued. This is an example of denial on fraudulent grounds," says Baradhwaj. What you should do Irrespective of the 3-year incontestability clause in favour of the policyholders, it is better to disclose all material facts while purchasing life insurance. Facts shall not be considered material unless it has a direct bearing on the risk undertaken by the insurer. The onus is on insurance company to show that if the insurer had been aware of the said fact, no life insurance policy would have been issued to the insured. Make sure you have not just read the terms and conditions of the policy but also have filled up the application form yourself. "Once you sign the proposal form, you are deemed to have read all the questions and answers filled therein. This is the presumption in law. You cannot take a defence saying that I did not read the proposal form when I signed it," says Baradhwaj. It is always better to disclose all medical history including family history and even pay 'loaded' premium, if any, than to leave the surviving family members at bay in case of a claim.

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Have you heard of the potato diet? If you're looking for a simple meal plan for weight loss, look no further than the humble potato. Potatoes are rich in vitamins, minerals, fibre and nutrients that can help ward off diseases, including cancer, and boost your health in many ways. The energy-packed vegetable is easy to digest and contains more potassium than a banana. Whether white or sweet, plain potatoes are a great addition to any weight loss diet as they are fat-free and low in calories. According to the European Food Information Council, plain boiled potatoes are a very satiating vegetable, which means it helps keep you feeling full for an extended period of time, an important aspect of any food when you're trying to eat less to slim down your waistline or shed a few pounds. Hence, the potato diet or potato hack may help you achieve your fitness goals. Read - M-plan for weight loss: All you need to know about the mushroom diet to reduce belly fat fast The potato diet for weight loss: Does it really work? The potato diet is a short-term eating plan (3-5 days) designed to help improve weight loss, digestion and health. Basically, one eats nothing but potatoes while on the diet, promising fat men become as `lean as they ought to be'. Reportedly, the diet plan, which appeared in a medical journal, was originally developed by a doctor in 1849 for people that were becoming fat and `dyspeptic' - having problems with digesting food - from living too. Tim Steele, who rediscovered the idea of the potato diet to help people deal with weight issues with his book, `The Potato Hack: Weight Loss Simplified', said that the potato is the best diet pill ever invented. The Potato Hack is a comprehensive review of resistant starch, gut health, potato history, and a growing guide for those that want to grow their own. It is said that potato contains Potatoes contains compounds that affect inflammation, hunger, insulin and sleep, helping to jump-start weight loss and a healthier way of eating. A 2014 study, which compared weight loss on a group of people following a reduced-calorie diet with or without potatoes, found that the adding potatoes to the diet did not cause weight gain. Read - The Bride Diet: Best pre-wedding weight loss plan to slim down your tummy and waistline in just 2 weeks How to use and prepare the potato diet for effective weight loss To obtain the best results in weight loss, you may use the following tips: Dieters are advised to eat potatoes until full or about 2-5 pounds daily for 3-5 days. No other food is allowed while on the potato diet. You can add a very small amount of sea salt or Himalayan pink salt if you want, but it's not encouraged. You can drink black tea, herbal teas, black coffee (no added milk or sugar) and water. Avoid heavy exercise while you're potato dieting, instead, opt for light exercises, such as walking. You can also take your medications - if any - but dietary supplements are not recommended. Potatoes are a versatile food that can be enjoyed deliciously in various forms than just eating them plain. Boiling potatoes depletes many of the nutrients. For instance, dieters can boil the potatoes and let them cool for 24 hours in the fridge. Since boiling potatoes can deplete many of the nutrients, they can also save the water, refrigerate it and consume. Another way is to bake or steam the potatoes, similarly, cool them for 24 hours in the fridge before having them. Even if you do not want to opt for potato diet to slim down, adding potatoes to your weight loss diet might help. But make sure that you use it smartly, remember, meal preparation could be the culprit.