In Express Adda Hardeep puri said Time has come to change the world order established after World War II

Jul 04,2022

At the recent Express Adda in Delhi, Union Minister for Housing and Urban Affairs and Petroleum and Natural Gas Hardeep Singh Puri spoke about a changing world order, India’s dependence on oil and the need for government intervention in real estate.

On America’s lack of leadership and the changing world order

Another way to address this issue is, are we seeing a process that has already begun well on globalization? Inflation in America today is the highest in 46 years. The Fed (US Federal Reserve) has announced a huge increase in interest rates. Markets have already noticed that increase in interest rates… and now the buzz is of a similar hike in the coming months. So that U.S.

The most important thing I found there (in Davos) was that Europe was busy with itself. It took some gentle but articulate conversations to let them know that there is a world outside, which is beginning to face challenges today. There are many kinds of crises before us. We should not look at one crisis in such a way that it aggravates another.

Food crisis, fuel crisis and fertilizer crisis. Actually, all three are intertwined. Why is this happening?… The global order, which was established after the Second World War, I think it is time to see if that system needs to be changed to make it suitable for the world. The world has changed rapidly.

How long will India’s dependence on oil continue?

I don’t think the problem started with the military operations between the Russian Federation and Ukraine on 24 February. Fuel problem has happened before. But February 24 gave it a whole new dimension. Three things happened as a result of this crisis. There will be unrest as we navigate the crisis, but some good things will emerge from it. One is that people have become extremely cautious because you don’t want your consuming public to have the kind of impact that we’re seeing in some countries in India – you want to make sure you have oil, So you will diversify your sources. Second, all this talk about the green energy transition will accelerate it. If you look at what we have done in India, we have increased our exploration and production dramatically. Out of our 3.5 million square kilometer sediment basin, we were never exporting more than 6-7 per cent, we increased it to 15 per cent. Our biofuel mix was 1.4 percent in 2014. Today, we’re already mixing 10 percent. We had set a target of 20 per cent by 2030.We have already taken it forward till 2024-25. As per my ministry statement by April 1, 2023, E-20 or Ethanol 20 percent blended will be available at our petrol pumps. We are going for compressed biogas on a large scale… no matter which way you look at the energy equation India will be a significant driver of demand in the next 30 years. You have a population that is more economically active. Our per capita consumption is one third of the global average. The global average will remain stable… A prosperous Europe cannot consume as much energy, they may have to get it from elsewhere. The first, was that we cut Russian supplies. Now the reality is that Russia may decide to shut something down. I think while all the positive things are happening, the international systems that exist are going to fundamentally change.

If insurance covers are not going to be available outside London, they will become available from other parts of the world. If people think they can artificially calibrate the quantity supplied, you’ll suddenly find that people have just moved on. And when the transition happens, you may have more left than you bargained for. I think while all the positive things are happening, the international systems that exist are going to fundamentally change.

on change in leadership

Look, it is very tempting to say that where power resides, there is a change. I don’t buy it. America is the major economy, it is about 20 trillion dollars. You can’t change it. China is the second largest economy, with approximately $11-12 trillion. After that, there are one or two countries on five, and there are countries that are at $3.23 trillion today, but are coming very quickly to $5 trillion. So what will the world look like in 2030? We should become a $10 trillion economy by 2030. Now, by that time, probably the US and China and everyone else will have adjusted, but you can see the trajectory, some will go up, some will not be able to go up. The real issue is, will the second largest economy challenge the world’s largest economy in terms of economic power?

On the change in India’s attitude towards West Asia

I think these are very strong relationships. Oil may seem to be a more important factor now, as oil prices are very high, but please also look at the number of Indian origin or Indian passport holders who are working in these countries. So it’s a very strong relationship and I think the years of Modi government have seen the special efforts made by both sides to see how the excellent personal chemistry between heads of state and government strengthens the strength of the relationship.

Why has the United Nations failed to stop the use of force?

There are three United Nations. is a member state, which means 193 member states of the United Nations. Next is the United Nations Secretariat, the Secretary-General. The third United Nations, which at times I thought was more powerful than the other two, consisted of NGOs, civil society and you, the great influencers who form the opinion. If the UN is messed up, don’t blame the UN, blame the member states… Now, in normal times, if the permanent members agree among themselves, they can all get together and tell the Secretariat are what to do. But if the Russians and the Chinese are side by side, or if the British and French are not looking face to face and every one of them is echoing and using a veto… just look at the UN record, whenever there is a crisis. Where, how many times has the veto been used? And what are the purposes for which the veto has been used?

So today some countries can turn back what they said in my time too, that if you are facing a situation that includes mass crimes like genocide, ethnic cleansing, war crimes and crimes against humanity, then A permanent member should not exercise the veto. But that’s all. Look what’s happening. I would say that the United Nations can be more effective.

reliance on renewable energy

One of the things the pandemic did was that it made you wary of your supply chains. When the disruption happened, you said, I can’t depend on getting my active pharmaceutical ingredients from one source. I need to diversify. We had vaccine manufacturing capacity in the public sector and I think the previous government dismantled it between 2004 and 2014 because it was not a priority. Today, I think, the lessons we’ve learned have driven home the point – you can’t depend on any one source or one type of energy. This can lead to serious consequences.

on green hydrogen

I think there are challenges, but the optimism I have about green hydrogen is very high…India is the place for energy and the future because the Indian growth story will require energy. The Prime Minister was addressing the nation on 15 August from the ramparts of the Red Fort. He said that we will do it in mission mode. This is being done.

On allowing the export of refined crude oil, banning the export of wheat

Perhaps private retailers, thinking there was more money to export, decided to reduce sales volume domestically. But I think we have dealt with that situation. Am I entitled to ask them to sell? Absolutely. But there comes an important point if you have to choose between a small household obligation… and I have no doubt they will extend to that. Wheat export ban is a narrative issue. It’s not like we’re saying we’re going to hang on to the wheat and stay here. No. What we have done is that in the kind of situation we are in today, it is probably prudent to use our ability to export food to some countries as a strategic instrument. If you open it all the way up, you know what’s about to happen – it won’t go to the people who need it. It will go to people who have the ability to buy and wheat doesn’t have a limited shelf life, it will be stored in silos, and what could happen is that global prices may go up and people will turn around and start selling… it’s possible.

On the need for government intervention in real estate

The government has to make sure it has a system that works and when I became the housing minister, the most obvious thing was that we didn’t have any regulators. So what did we do in RERA (Real Estate (Regulation and Development) Act)? There was an attempt to sabotage RERA. A large number of cases were registered against RERA. Hence the Delhi Apex Court directed to take all the cases to the Mumbai High Court. The best part is that the court struck it out, RERA is here and it is a roaring success.

Bulldozers were used to destroy homes in some states

I have an easy path – since land is a state subject, as a Union minister I have nothing to do with it – but I am not going to take it. I am going to give you a very simple answer… Urbanization in India is an autonomous and robust process. People come from their villages in larger states and move to Tier II or Tier III cities in search of jobs. So a lot of people came to NCR or Delhi and some unscrupulous elements started cutting… they call it cutting colonies. With the passage of time, you settle yourself but it is (still) an unauthorized colony. I piloted the bill to regularize 1,731 colonies. I will never forget that day because my daughter was getting married and I had to skip a religious ceremony because I had to go to Parliament. So this is one of the success stories but it is still a work in progress. As for the sensation, “Are you allowed to throw stones? Are you allowed to damage public property?” – This is not a discussion that can easily be done without knowing the context. Land is very much a state subject. But whatever the issue, the right to dissent is fundamental. But express your disagreement in the form of a disagreement. Not saying that if you don’t give it to me, I’ll burn it.