7.1 Introduction
The Party name is MRCM-Recall. MRCM means Mineral Royalties (and land rent) for Citizens and Military. But till now, the website has spoken only about Registration of Yes/No of us citizens. Why? Well, to obtain the mineral royalties and land rents, it is necessary to get some Executive Notifications signed. And since existing CMs and PM are all agents of elitemen, they will never sign the required ENs. So a procedure by which citizens can issue ENs is necessary, and hence the second MRCM demand for registration of us commons’ Yes/No. Now I will describe the 3rd proposed EN in this webpage. This EN deals with mineral royalties.
We want to enact this EN using the second proposed EN and using YESes of over 50% of voters of India i.e. YESes about over 36 crores voters. IOW, MRCM-Recall Party does not need majority in Parliament to get this EN, and we dont need even one MP in Parliament to enact this EN. We only need citizens to force PM to sign the second proposed EN. And after PM signs the second proposed EN, the citizens can get this third proposed EN within 2 weeks. This is important part of our strategy.
7.2 The Third proposed Executive Notification MRCM demands at National Level
The most important of all changes the MRCM Party demands and promises is – The land rent from IIMA plot, JNU plot, all airports plots, 10000s of such GoI plots and mineral royalties from all mines must go directly to us Citizens of India and our Military and no one else.
This shall translate into an income of over Rs 8000 per person per year. Per person, not per family. And this shall reduce poverty, increase demand, increase industries and this increase employment. Here is how the land rent and mine royalties shall come to the citizens of India. If we come into power, on the first day, we shall issue the first 3 as well this 4th change, which shall enable citizens to have income of over Rs 700 per month.
Citizens’ control over main officer
- One of the clauses of the draft of Third MRCM-Recall Executive Notification says : “the PM shall appoint a NLRO (National Land Rent Officer), whom the citizens of India may replace using the following procedure ... ” . The procedure is in cluases 2-5s
- Any citizen can pay deposit equal to MP election and register himself as candidate for NLRO.
- 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.
- The Talati will put citizen’s preferences on Govt website with his voter-ID.
- A citizen can cancel his approvals any day as well.
- On every 1st of the month, the PM’s secretary will publish the approval counts of each candidate
- 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.
- 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.
- The NLRO will allocate the lands 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.
- One of the clauses of the Third Govt Ordinance MRCM Party demands 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.
- 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
- [About IITs, IISc etc : A separate Executive Notification 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]
- 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 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.
- 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.
- After the lease time is over, NLRO will hold a fresh auction, where in existing lease holder will get benefits
- his weight will get multiplies by 1.25 to 1.5 depending on number of 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.
- 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.
- 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.
- The NLRO will give 34% of the rent collected to Defense Minister for the purpose of strengthening Military. The Defense Minister may use it for building Military, establishing weapon manufacturing factories, nuclear weapons testing, nuclear weapons manufacturing, providing weapons to all citizens and giving weapon-use education to all citizens.
- The NLRO will distribute 67% of the rent collected every month the citizens of India
- 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.
- One year after this law is passed, the rent a person obtains
- will increase by 33% if he has no kids
- 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 kid is born 1 year after the law is passed
- 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.
7.3 Obtaining mine 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 Party demands and promises is that mine royalties and crude oil royalties will go to commons and Military directly.
7.4 How much is land rent and mine royalties?
The Govt of India, Central and States, have 10000s of plots with huge marker value. Here is a small example
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 per sq meter | Plot’s market value |
| 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 |
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 per sq meter | Approx market value |
| 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 crs |
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.
7.5 How much is mine royalties?
The mine royalties estimation is possible, but varies 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 = $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).
Production in India = 660,000 barrels per day
= 660,000 * 365 barrels per year
= 24,09,00,000 barrels per year
= 24 crore barrels per year
Population = 110 cr commons
Per capita Production in India = 0.22 barrels per Indian
Profit = 115 dollars per barrel
Total profit in dollars = 0.22 * 115 = $25 dollars per Indian citizen
Dollar price rate = Rs 45 per dollar
So profits in rupees = $25 * 45 = Rs 875 per common per year
Iron Ore
production = 123 million tonne = 12.3 cr tonnes = 0.11 ton per Indian
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 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 our 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 mines 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 mines and plots we citizens own.
This administrative change is THE change for which all other changes are suggested by our MRCM Party. 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.
7.6 Decreasing poverty
The mine royalties and land rents will add to 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 mines 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 mines and plots we citizens own.
This administrative change is THE change for which all other changes are suggested by our MRCM Party. 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 following law fixes one source and other change fixes the second one.
7.7 Effect of land rent collection
One the land rent act is enacted, one of the two things will happen ---
1. either we commons will gain say Rs 1500 per person per month OR
2. the price of land will fall, as renting makes hoarding impossible.
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. This 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.
7.8 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. If rents were collected from airports, then the wealth plain ticket buyers would have given out money to the owner of the land namely us commons. Consider Delhi Airport which serves 2 cr passengers a year has rent value of Rs 6000 cr per year or 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 owned. This only increases the wealth/income gap by unfair means of rent denial.
7.9 The draft of the Third proposed change at National Level
| # | Procedure for | Procedure / instruction |
| . | . | . |
| . | . | Section-1 : Registering citizens Approvals for NLRO candidates |
| 1 | - | The word citizen would mean a registered voter of India |
| 2 | PM | PM would appoint an IAS officer as NLRO (National Land Rent Officer) . |
| 3 | 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. |
| 4 | CS | The CS may assign above task to any class-1 officer. |
| 5 | 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. |
| 4 | 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. |
| 5 | Talati | If a citizen comes to cancel his Approvals, the Talati will cancel one of more of his approvals without any fee. |
| 6 | CS | On every Monday, CS publish approval counts for each candidate. |
| . | . | . |
| . | . | Section-2 : Replacement of NLRO |
| 1 | PM | The word citizen would mean a registered voter of India |
| 2 | 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. |
| 3 | 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. |
| 4 | PM | If the person’s approval is below 33%, then PM may replace him with his appointee. But as long as approval is above 33% , PM will not replace him with his appointee. |
| . | . | . |
| . | . | Section-3 : Ownership of plots under GoI |
| 1 | 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. |
| 2 | SCjs, HCjs, PM, All citizens | All plots under following Ministries/Dept will come under NLRO :
|
| 3 | 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 |
| 1 | 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 be
|
| 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. | |
| 3 | NLRO | After the lease time is over, NLRO will hold a fresh auction, where in existing lease holder will get benefits
|
| 4 | 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. |
| 5 | 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. |
| 6 | 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 |
| 7 | 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. |
| 8 | 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. |
| 9 | NLRO | One year after thislaw is passed, the rent a person obtains
|
| 7 | 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. |
| 8 | 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. |
7.10 Some remarks on the draft of the law
- The purpose to bring this change via two Executive Notifications and three Govt Ordinance rather than one single EN with 5 sections is to expose the hostiles and also to save the scheme from the hostiles.
- The Executive Notification-2 (dealing with Replacement of NLRO) creates a mass base as well as mass pressure over NLRO. The existing “democracy” did not deliver the land rent to us commons, as the existing democracy enables us commons only to create leaders with mass base but no mass pressure. i.e. we commons don’t have any procedure to threaten the top official of immediate expulsion if he decides to become agent of elitemen.
- Given the absence of mass pressure, all neta choose to be become agents of elitemen rather than act as agents of us commons, and so we did not get land rent for 60 years. The Executive Notification -2 creates a mass pressure on NLRO to dispatch rents.
How easy/difficult it is to dispatch land rent and mine royalties to 110 cr commons? This task will done using Universal Banking System (described later) in which every citizen will have exactly one account in State Bank of India (or a Govt Bank) close to home. 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. 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 20% to 180,000 clerks. IOW, using about 180,000 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 we often hear against our Third demand is that managing a network of 100,000 to 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 schools needed will be at least about 2 sqm per student i.e. 50 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 we at MRCM Party certainly do support education, health etc. we 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.
7.11 Summary
The Party's official name is "Right to Recall Party", but it is unofficial name - MRCM, is the REAL name. What purpose is recall going to serve if Military becomes weaker and weaker and poverty keeps rising? NOTHING. The idea of us commons getting the mineral royalties and land rent to commons is the REASON why I started this party, and the reason I drafted recall laws - for - in absence of procedure to recall PM/CM, PM/CMs will never ever deliver mineral royalties. Hence recall is important, but only if recall delivers MRCM.
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