Moody Rating and the Scheme of Half-Time  

This post introduces an innovative scheme called Half-Time that is rumored to be launched on the eve of the New Year in the interest of sustainability in India. Here is the “story”.


I went to see my Professor who was advising a company managing Mutual Funds on the Green Bonds. We chatted about the impact of Moody’s recent upgrading of rating to India to Baa2 from Baa3.

Professor’s view was that this upgrading was long overdue.

“These international rating bodies have been unfair to appreciate the progress made by India” He said.

While serving a special black coffee, he showed me a report on his desk from Dual Citizen, a US-based data consultancy. This report was 2016 edition of the Global Green Economy Index (GGEI). The report ranked 80 countries on both how green they are perceived to be, and how well they (actually) perform.

Professor said that on perception, India was not bad and was ranked 19 out of the 80 countries that were researched (Note that India was on rank 16 in 2014). Germany was on the top of this list. On the performance side however where Sweden was on the top, India’s rank was 68 (it was on rank 49 in 2014). This rank was really low and of grave concern. Clearly there was a contradiction between “talk” and the “walk”.

He quoted a paragraph from the report

According to the IMF World Economic Outlook, India, Bangladesh and Senegal should realize GDP growth between 6-8% in 2016. Yet in a trend that has been observed in previous editions, these countries perform poorly on the new GGEI, raising the question of what kind of growth these nations are realizing and how sustainable it is.

I couldn’t disagree with this observation.

Professor closed his door of his cabin, walked closer to me and whispered “Dr Modak, do you know that Moody’s are thinking of expanding their rating systems to factor the GGEI?  If this happens, then we will certainly be downgraded, and our reputation and investments flows will be hit. Moody’s are expected to come up with this modified rating system in 2019. It is rumored that Jayaram Ramesh of the Congress Party is helping Moody in this intellectual exercise”

I was shocked with this “secret” news.

Professor paused. He took a large gulp of the coffee and then said, “I have therefore advised our PM to implement a novel scheme called the “Half-Time”. This scheme will be PM’s third and final wave of reforms before the national elections”

“What is the scheme Professor?” I was very curious

In several team-based sports, matches are played in two halves. Half-time is the name given to the interval between the two halves of the match.  What I have proposed to the PM is to direct the citizens to live life in two halves – one half for the usual or allotted work and other half devoted to put sustainability in practice.

“This transformational reform (essentially a directive) will be vigorously implemented across India. It will reduce the contradictions between the perception ranking and ranking based on actual practice or implementation. We will achieve all colors of the economy – i.e. green, blue and purple.  A pilot phase of this Scheme has been already commissioned in Mumbai. Based on the pilot experience, our PM will announce the Scheme across the country, on the eve of the New Year.

“But what is this Scheme about?” I wanted to know the details.

Professor lighted his cigar.

“Sustainability is so much talked about that most of us just keep talking. Sustainability has become a “talking subject”. All generally advise what others should do by making presentations in the seminars or while writing recommendations for the Committees. Many criticize on channels like Times Now, Mirror Now etc. that nothing is happening on the ground. Few win awards for their performance – typically bestowed by CIIs and FICCIs – and become the heroes. But these companies or institutions are like small islands in the Pacific Ocean”

I thought the Professor was right.

“So I told the PM that budget for implementation is not the constraint. The real challenge is how to get time and commitment from people or their involvement. Today its tough to get time to do something concrete on sustainability as it is not described in the job description. Besides sustainability is a pretty nebulous concept”

“Take case of a middle class Mumbaikar. On an average a Mumbaikar travels 1.5 hours each way to reach the office and get back home. Mumbaikars are tired and frustrated in the journey and also in the office as they breath poor air quality (indoors as well as outdoors), watch heaps of garbage and flies around, drink overly chlorinated water at the taps and cope up with a sad and uninspiring boss.  They eat vegetables that are rich in pesticides and cook meat that has high levels of steroids. All they can do is criticize the civic bodies and their administration, builders, automobile makers, politicians, NGOs and the like. Media loves this jinx by hosting shows on their TV channels on the “pollution menace” or as a breaking news on the poor quality of life. Nothing changes on the ground. Of course we have the rules, regulations, fines….”  Professor stopped as there was no point to elaborate.

I thought the Professor was right once again.

“In the Half-Time scheme, people in Mumbai will work for only half time in their offices. The rest of the half-time will be devoted to some concrete sustainability oriented action. For the Government employees, the scheme will not lead to additional financial burden as most government employees anyways work Half-Time. Instead of chitchatting, sending what’s app messages, stitching a sweater or doing side business (like real estate) etc. and wasting time, they will step out and do some meaningful work for their neighborhood and society. This should be more interesting to them”

“But what about the private sector? Who will pay for the Half-Time?” I thought I asked a tough question

But Professor was easy.

“Companies who are obligated to spend 2% of the Profits on CSR will be allowed to divert their budget for sponsoring the half-time of the staff. In the initial phase, we will apply the scheme only to companies that need to be CSR compliant. To maintain their targets, these companies will need to double the employment who will work during the remaining half-time. Remember that generation of employment has been one of PM’s promises while campaigning for the election. So this will fit well”

I thought this strategy was superb.

“We will amend the Schedule 7 on CSR under the Company’s Act accordingly and make this Half-Time expenditure eligible. In this way, the CSR budget will be better spent and the staff working on sustainability related actions will bring in the desired change. We will thus see actual improvements on the ground instead of just the talks. The staff will also get good exposure to problem solving and identify new business opportunities for themselves and for the companies”

“Professor, can you give me some examples from your pilot? I asked

“Well, the Income Tax officers working at the BKC office have taken up beach cleaning in Bandra and Dadar (West). Clerks working in Mantralaya (Secretariat) at Nariman Point are conducting literacy campaigns for the children of fishermen in Colaba. Officers from Reliance in Andheri have adopted five streets in Versoa to plant and take care of the indigenous trees, track the birds (excluding crows and the pigeons of course). Software engineers at Tata Consulting Services are writing Mobile Apps to guide the citizens, especially children on green living. And through all these efforts, we are already witnessing a significant improvement”

I was impressed.

“But Dr Modak, there are exceptions of course. Half-Time Scheme for instance is not applicable to essential services such as fire department, hospitals, water supply & solid waste management department etc. Half-Time scheme is also not applicable to our defense forces. There are several such caveats” Professor said this in a cautionary tone.

He looked into the watch and noticed that was nearing 1 pm. “Well Dr Modak, I better leave as I must grab my lunch quickly and join the team on my Half-Time project”. He extinguished the cigar.

“What’s your Half-Time Project Professor?” I asked

“Well, we are holding series of convincing sessions with the senior politicians in the Municipal Corporation (both ruling and in opposition) to approve the pipeline of projects needed for the sustainability and safety of this city. These sessions are held at the Taj because these politicians are not interested to meet at cheaper hotels”

“Professor, hope your Half-Time efforts will help in clearing the critical pending proposals such as widening of the railway Foot Over Bridges (FOBs)” I said

Professor said “Yes Dr Modak, but we are targeting for fast clearance of mega projects such as the Trans-Harbor Link, Coastal Road project etc. Compared to these mega projects, the FOBs are rather minuscular and less impacting. Let the present system handle the FOBs. Our Half-Time work of continuous persuasion of politicians if successful will propel thousands of crores of investments”

Professor left for the Taj.

I realized that these investments were certainly important to maintain or improve the Moody rating.

I kept wondering however whether these projects will really bring sustainability to this city.

But perhaps that was not the point.


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