BRT- A damager to IIT Image

The controversial Bus Rapid Transit (BRT) corridor has become the nightmare and if media is to be believed, it has created major upheaval in day-to-day lives of a large number of Delhites living in the affected areas where the trial run is getting carried out. Citizens’ groups, traffic experts and MPs forgetting party lines are raising the embarrassing questions for the government implementing it and even demanding immediate scrapping of the project. Even Supreme Court lawyers have joined the chorus. Perhaps soon enough it may reach SC through some PIL.

Interestingly, the persons behind the corridor concept are Dinesh Mohan and Geetam Tiwari from IIT-Delhi’s Transport Research and Injury Prevention Programme. I heard them once on TV channel. However, I don’t hear any more if they are with the taskforce on the road to see that the fiasco is sorted out fast enough so that their capabilities don’t come under questions. The IIT’s team should have taken this as a challenge and deployed all its resources to see that the design is robust taking all the failure and effect modes in view. All the issues and possible problems would have been studied and taken care of before starting the trail. After all, the name of IIT is at stake. Many like me must be feeling bad about it. Why couldn’t the concept and expected actions from the commuters using the corridor have reached them through media and pamphlets? Why should the road users lack the information about BRT and be taken for granted? Why couldn’t the sufficient number of smart marshals be trained in advance? Why shouldn’t signaling and signage be put in place? Why can’t issue of stray cattle be sorted out?

If the concept, as claimed, were supported by bus manufacturing majors Volvo and Tatas, I would have expected them to put their experts with the implementing task force to provide all assistances.

As I feel the preparations before starting the trial was not done using suitable management tools, and accountability was not fixed. I have also found some blaming the government for not using its own talent.

I wonder why we Indians fail in getting all the projects such as BRT implemented. It happened with expressway connecting Gurgaon to Delhi. It has happened now with BRT. I am sure the authorities will take care of the lapses, the commuters will soon learn and get acclimatized, and the people will forget about the fiasco created.

But I opine, IIT experts would have been more visible and vocal, when its design had some difficulties in implementation or drawbacks perceived or real.

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Tulsidas and Modernity

Beside one’s expertise such as auto manufacturing and management for me, one must have some other interest too such as reading, writing or even painting. Over the years, Tulsidas and his Ramcharitmanas has been my companion. While many keep on criticizing him for being a little too anti-woman and too pro-brahmin, I find him real modern in his social approaches.

Many talk about at least three social taboos in Hindus- veil for women, large number of children per person, and unsociability.

Time and again, Tulsidas talked against untouchability. But the best is one as given below:

Ram sakhaa rishi barbash bhenta, Janu mahi luthat saneh sameta.
Ehi sam nipat neech kou nahn, bad basishth sam ko jag mahi.


This is beside Ram’s love for nishad and Sabari, the dalit woman.

Tulsidas specifically mentions of only two sons to each of the four brothers, once they start living in Ayodhyaya.

Dui sut sundar Sita jaye, Lav Kush Ved purananh gaye
Dui dui sut sab bhratnh kere, bhaye roop goon sheel ghanere


And then Tulsidas comes specifically against the veil. He makes Ram instruct.

Kah raghuvir kahaa mum manehoo Sitahi sakha payede aanahoo
Dekhahoon kapi janani ki nai bihansi kaha Ragunath gosain

Many a times, I get real lonely. With advancing age, it is getting agonizing, as for some time, nothing including TV or Internet get my emptiness filled. But Tulsidas’ Ram Charitmanas provides the answer and end my solitude. I adore the book and its creator. I keep on reading and getting many fresh ideas from this most respected book based on Valmiki’s epic Ramayana. I don’t think there is any fundamentalism in this.

While the mere thought of the law and order situation in Noida and the country makes us shiver, I get reminded of Tulsidas definition of Rakhashas. How nicely has he answered to the suspicion that he thought people of the modern India would raise about the real Rakhashas?

Badhe khal bahu chor Juara, Je Lampat pardhan pardara
Manhin matu pita nahin deva, sadhunh san karwahahin seva
Jinh ke yah aacharan bhawani, te janahu nisichar sab prani


Mayawati aspersions on vipra has become less frequent after her experiment and success of her brand of social engineering where so-called vipra have joined with dalits to make her win the last assembly election. Tulsidas mentions of vipras and Brahmins as one who inculcated good virtues and values such as learning, imparting knowledge and advice through lot of education and tapsya, and not as one born from Brahmin parent.

One may keep on thinking over these social issues and can get the way out for an equitable society living in peace mutually helping and respecting each other.

I wish I could have made all my dear ones read Tulsidas.

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Inflation- Traders Laughing, Consumers Perplexed

Inflation is really affecting us, particularly the retired persons. I am sure it must be affecting most of the salaried employees too, as it happened with us in late sixties, when the inflation suddenly rose very drastically. I wonder who is making the money: the farmers, who grow, or the wholesalers, or retail traders. Should there be a relation between the prices paid to the farmers, and the prices charged by the wholesalers and the retail traders? Unfortunately, it doesn’t exist.

Since last few weeks, I find most of the daily newspapers of the national capital regions carrying an ad from Agricultural Produce Marketing Committee, Azadpur. As mentioned at the bottom of the ad, it is being ‘done in public interest’. The ad carries the wholesale rates of fruits & vegetables, food grains and pulses in regulated markets- Azadpur, Narela Mandi and in Naya Bazar on the previous day. The wholesale prices (in Rs. per kg.) are surprisingly low. For instance on 22.04.2008, potato was at minimum of 3Rpk and maximum of 4.75 Rpk, onion at minimum of 3 Rpk and maximum 5 Rpk, tomato with minimum at 2.5 Rpk and maximum at 8.75 Rpk, cabbage with minimum at 1Rpk and maximum at 5.75 Rpk, ladyfinger with minimum at 6 Rpk and maximum at 20 Rpk. Price at Narela for the wheat (Mexican) was at minimum of 10 Rpk and maximum of 10.25 Rpk, while price for dals Arhar and Gram at Naya Bazar were at Rs. 34 and Rs 31 per kg. respectively.

The ad aims at telling people the difference between the wholesale rates and the actual price the retailers or the vendors are charging from the customers.

One thing is sure that the farmers or the growers would have been paid much lower prices to have the wholesale price at the level in ad. The farmers are not getting the benefits of the high prices charged from the consumers. The local traders try to buy from the farmers his produces of wheat, rice, or pulses at less than the minimum support price (MSP) fixed by the government. Even the agents of the bigger private companies procure at as little as Rs 10-15 above MSP. Unfortunately, the farmers are neither that rich to resist the tirade of the traders nor as united as the traders are.

Now with the wholesale price known, what should be the prices of the commodities for the consumers that can justify the cost of transportation, other intermediary expenses, some amount of losses, and the margin for the retailers? Presently, the retailers are selling at nothing less than 2-3 times or occasionally even more of the wholesale prices to the consumers. Is it justified? Can something be done about it?

· The vendors in weekly market or permanent vegetable markets decide the retail prices to be charged from the consumers between themselves on day-to-day basis before starting the working day.
· The lone vendors pushing his cart through different localities charges the prices according to the opportunity he gets.
· The prices in organized retail outlets such as Shubhiksha or ‘aap ka bazaar’, or ‘food bazaar’ or even in ‘Safal’ outlets are also almost very much near to these vendors. It doesn’t appear that these organized retailers are buying storing, transporting and delivering using the best practices and selling at the least price to the consumers, as claimed.

As reported in media, even the reputed companies are cutting down the weight of the packages in such a manner that the consumers fail to know, to maintain the price for the consumers without telling the consumers. How can the poor consumers do? Is it any way different than under weighing by the vendors in weekly bazaar?

While the political pressures through protests of all kinds are going on, the situation at least in India demands solutions through a very efficient supply chain management and induction of a lot of investment in technology, warehouses and transportation system to cut down the delivery time and waste. But in this so-called free market economy, who will do that? The only hope can be big business houses that are entering the retail sector such as ITC, Reliance and Bharati and promising to pay the best to the farmers and charge the minimum from the consumers. It can happen if a competition such as one in telecom can evolve. Will it happen?

PS: The Indian retail market will grow to $637 billion by 2015 and modern retail, which presently accounts for 4 per cent of the total market, is likely to increase its share to 22 per cent by 2010.

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Bihar Cabinet Reshuffle- Caste or Performance

I have never found Times of India (Delhi edition) covering any news from Bihar so extensively. It didn’t report the Bihar’s only cabinet reshuffle as news. But on April 20, it carried a headline ‘BJP upset with Sushil Modi for playing into Nitish hands’ and then on April 21, ‘Rajnath approved of reshuffle: JD (U)’. I don’t know if it is beginning of the end of alliance or just a media masala to create a breach of trust between the two parties.

Unfortunately, in Indian model of coalitions, the head of the allied political party and not the prime minister or the chief minister decides the performance of an individual minister belonging to the party to decide for exclusion or inclusion. It is Karunanidhi who decided the exclusion of the smart Dayanidi Maran and the inclusion of D Raja. Even if Manmohan Singh would have liked to retain Maran, he could not have done that. It was against Indian alliance dharma (principle). Even if one minister is corrupt and the PM wishes to drop him, the PM can only persuade the minister’s party head, but can’t take a decision on his own. I wish after once a minister is installed, the PM should become his real boss for managing in better way.

During this reshuffle in Bihar, I was amazed to find media mentioning the name of ministers dropped or included mentioning their castes. According to media, if someone from a caste was dropped, the incoming person was from the same caste. I didn’t find even a sentence anywhere about the credentials of the ministers justifying their induction or about the performance of the dropped minister. How can one think of any development in the state with such a mindset prevailing in its people and media?

How long Bihar will live with its caste obstinacy? I remember Nehru who was contemptuous of caste. In a circular sent to the presidents of all the Pradesh Congress committees in 1954, Nehru said: “In particular, we must fight whole-heartedly against those narrow divisions which have grown up in our country in the name of caste, which weaken the unity, solidarity and progress of the country”. In last 60 years, the caste bias has accentuated in Bihar. Many thought that with education, it will die, but it never happened. Why can’t the people of Bihar, particularly the younger generation, understand its necessity for survival, respectability and progress of the state?

Another obvious inference appears to be the absence of persons, reputed in his area of expertise among the ministers. Should I infer that Bihar doesn’t have any person with an established record of performance in administration? He could have been brought in the cabinet to enhance the image of the government? I am sure Bihar has produced a large number of able people at least in education and healthcare sector. The CM could have invited them to join the ministry. Bihar requires improving upon education as well as healthcare as focus area. The education minister must be a dynamic person who could get large number of good secondary schools, trade schools, engineering and medical colleges established covering every block of the state. Why can’t the education network be as extensive as it is in Andhra Pradesh or Tamil Nadu?

I remember many years ago one doctor getting elected from Sasaram. He used to be a reputed eye surgeon attached to the then president. We all hoped that he would be the health minister. But he couldn’t be minister. A party man was quoted as saying, “He has already made so much of money as doctor, why should he be allowed to do that any more?” Perhaps that may be the hurdle in bringing in the outsiders.

Whatever might be the story of Bihar’s cabinet reshuffle, with the reshuffle in place, Nitish must now move fast. He has already gone past half of his tenure. Should the people of Bihar hope for a developed Bihar or forget to dream?

We keep on hearing good news, and better performance. But nothing is happening to take Bihar position from the bottom most to a respectable level. Bihar can always become the granary of the country. It can concentrate all its synergy on the flood control and irrigation projects in North Bihar. It can earn huge revenue and create employment if it focuses on tourism and food processing sector.

I wish Bihar’s politicians hear the voices from all around and start working on some great projects all around the state and not only around Patna.

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How much does a small farmer make?

A 2005 cost analysis of a kharif crop grown by a marginal farmer from Basrahiya village in Lucknow district is revealing. The planning department of UP government did the study.

Land cultivated: 3 bighas (0.75 hectare)
Investment: Rs 12,200
Total returns expected: Rs 20,800
Labour input: 5-6 months of work by the farmer, his adult son and daughter-in-law
Net profit: Rs 8,600 or Rs 1,720 per month

Amount each of the three would have earned had they worked as wage labourers for 30 days: Rs 1,800 (at Rs 60 a day)

A higher landholding might have gone in favour of the farmers. But the with division of the land among siblings and the their siblings over time, the land holding is bound to reduce. The average landholding of 2.3 hectares in1971 has declined to 1.3 by 2001-02 and currently perhaps stands at around 1 hectare. It will be difficult to make it viable for leading a good living. Land consolidation must be encouraged with changes in existing laws of heritance as well as land ceilings. Land should go to the one who is interested and educated enough for proper farming instead of being equally divided among all siblings. Why can’t the minimum size of a holding be 10 acres for irrigated land, and 25 acres for unirrigated land?

Many political decisions such as free power resulted in excessive wasteful irrigation that has caused serious drop in water tables and so scarcity of power in many regions and demanding installation of extra powerful pumps. Use of sprinklers could have been more popular to save water requirement. Governments failed to go ahead with irrigation projects and river interlinking in significant way.

Excessive use of chemical fertilizers to improve productivity has caused a severe drop in the fertility of soil. Nothing has been done for rejuvenation of the soil through rotational practices in cultivation or to encourage natural biological manures.

Total return can only improve if the yield that is very low in India improves significantly through better inputs- quality or seeds and fetilisers or MSP is increased based on global market price.

Can the yield be improved significantly?

Why can’t the Minimum Support Price be enhanced significantly? If the food prices world over is increasing, why should the grower not get the advantages of that? If it can happen with oil producing countries, who have gone so rich with its oil reserve, why shouldn’t the farmers get that route to prosperity? If the oil coming out from mother earth can go to $117 per barrel last week from $10 a barrel nine years ago, why shouldn’t the farmers get the similar advantage? After all the Commission on Agricultural Costs and Prices has recommended a steep rise in MMSP, ranging from 25% to 94%, for most farm produce. It will certainly mean a steep increase in MSP of food grains also means inflation. Why shouldn’t it be acceptable by the more vocal and politically critical urban middle class? Will the top 25% be ready to sacrifice for the bottom 25% of the population through a differential pricing? As it appears it can’t be checked for long. Unfortunately, the farmers will not get benefited unless the intermediaries are removed from the system. Can the retailers pay a royalty to farmers with every increase in food grains price for the end consumers?

It is unfortunate that the governments- both center and state are still not ready to do anything in big way for improving the yield. For instance, many feel that Bihar is a sleeping giant in food grain production and can produce much more than what Punjab and Haryana has done with green revolution. Unfortunately, over the last 60 years nothing has been done for flood control followed by draught in North Bihar. No major projects were undertaken. Centre can’t live forever accusing the state government.

And every farming family must have some additional means of earning too. To cope up with the daily expenses of the family, the family can think of some easy means.
If it can keep cattle and spare some milk to the collecting agent, it can get a daily earning.
If it grows some vegetables on its rooftop, it can sell and get some money regularly.
If it grows some goats and sheep or poultry, it can sell periodically and earn.
If it plants some trees, that can become fixed deposit for the family.

Many in rural India require to be told these ways or to be trained in some skills that can earn them extra earnings.

All business associations such as CII and FICCI must discuss and find ways to provide extra earnings to the families of the rural India by outsourcing some of the tasks that can easily be done there with better physical and digital connectivity.

And the rural India can become a better place to live.

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China, China and India, India

In 2005, when I was in US, the bookshop ‘Borders’ helped me enjoying my 6-months long stay. It was at that time that I could really understand how China has touched every American through its Wall-Marts. But it was some books that opened my eyes about the sprinting growth of China. I read many of them, but ‘China Inc’ was really impressive with details how the Chinese factories expanded its wings almost sweeping global manufacturing establishments of the developed countries, be it US or historically strong Germany and Japan. Anand also introduced me to the writings of Thomas Friedman and particularly his column in New York Times. But it was his book ‘The World is Flat’ that made him so dear to me and perhaps all Indians, including former President Kalam. Finally we did buy that book and went through it as Ramayana. That was the time when media and western columnists or academics were having only China to focus at. Friedman has made India known to west in a little different and respectable manner.

In last few months, I have been going through a number of books that have been written to document the emerging economies of India and China together. I came across the two most important ones that provide a comparative study of the rise of India and China: Tarun Khanna’s ‘Billion of Entrepreneurs‘ and Robyn Meredith’s ‘The Elephant and the Dragon’.

However, after reading Robyn Meredith’s book, I got shocked. How has a nation of a billion plus kept on clinging to Mao after all the massacres caused by his policies? As I understand even today none can talk anything against Mao unlike India where every Tom and Dick can come out with his or her views making Gandhi and Nehru a pygmy. Here are some excerpts from her book:

“Mao was determined to transform his nation into an industrial power. Peasants were required to hand over all private property- down to bicycles and cooking pots- first for redistribution from rich villages to poor villages, and later to be melted down in backyard furnaces. This nationwide archpelago of backyard furnaces was supposed to take China’s steel production beyond Britain’s. In some areas, good grain rotted in the fields because so many farmers were told to produce steel instead of taking in the harvest. Peasants turned into skeletons. Communal kitchens were serving only thin gruel, so farmers hunted for frogs or rats to eat. Eventually they ate grass and leaves and even stripped trees of their barks. Some starving families resorted to a practice called yi zi er shi: they traded a child for a neighbor’s child, then killed and ate the skinny youngster, with the sickening knowledge that their neighbors were devouring their own. Hundreds of thousands of peasants were dying. In some villages, whole families perished. In some counties, whole villages vanished. Mao’s policies created a nationwide famine in which between 30 and 40 million people starved to death between 1959 and 1962. Surprisingly, Military granaries were stuffed. While its people starved, China was exporting grain.”

“In addition to the massive human toll, books were burnt, Chinese art was destroyed, temples and monasteries were smashed, and contact with much of the outside world was severed. The nation’s universities closed their doors. For more than ten years, the only education allowed was the study of Communist Party propaganda and of Mao’s Little Red book.” Mao died in 1976. And he remains Gandhi for Chinese. Could Indians tolerate and then excuse if Gandhi or Nehru would have been responsible for that sort of tragedies in India after independence or handed over the country to Britishers?

The Chinese rise as world power can be appreciated only after understanding the consequences of that sort of breeding of a generation or two. Luckily Indians didn’t undergo any such mental agony. It is difficult to digest after reading about China’s economic gains, a para on the condition of working class. “Many factory workers are forced to work overtime long in to night without pay, left unpaid for months at a time, or even locked in factory compounds like prisoners.”

And let us look at another act of the Chinese government- the one-child policy, which began in 1979. “To enforce it, China formed a family-planning department with 300,000 workers nationwide. They are responsible for at least ten million coerced abortions and ten million sterilizations a year.” Did Chinese take some clues from Sanjay Gandhi’s family planning moves or Sanjay learnt some from the Chinese?

Very lately, India has started getting the limelight, perhaps because of its consistently high growth rate or West’s disenchantment with China. I came across a number of interesting books on the India’s story. It started with Edward Luce ‘In spite of Gods‘ that I bought. Anand brought Mira Kamdar’s Planet India. Then I read a review of Kamalnath’s India’s century and bought it along with ‘The Rise of India’ by Niranjan Rajadhyaksha. I came to know of Shashi Tharoor, when he contested for the post of Secretary General of UN. He failed but even the failing was impressive. I started noticing and going through his column in Sunday Times of India. And when his book ‘The Elephant, the Tiger, and the Cell Phone came out in print, I couldn’t resist buying it.

I agree with Shashi Tharoor that India can’t reach anywhere near the Chinese economic miracles and its growth rate that is even today in double digits even on a higher base. The disruptive democracy of India can’t generate an inertia to cross double digit growth rate with leftists pulling downwards perhaps to keep China always ahead and with the caste-based political parties of north bent on dividing the country’s great creative human resources that could push the growth to the desired height. We can only hope against hope that one day, one of the national political parties rather than alliances of two-dozen parties with varying interests, may again rule the country.

And many will keep on writing wonderful books on Indian success story of its transformation from poverty to prosperity.

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Innovating India

It may be a coincidence that while ‘Business Today’ issue has published ‘India’s most innovative companies ‘, Business Week has special coverage of ‘The World’s Most Innovative Companies’. As very appropriately said, “the most innovative companies don’t do different things, they just do things differently. And that seems to make all the difference.”

‘Business Today’ list includes companies such as Deccan, Jet Airways, Mahindra&Mahindra, Tata Motors, Maruti Suzuki India, HDFC and ICICI Banks, Philips Electronics, Samsung India, ITC, Dabur, LG Electronics, Marico, Apollo Hospitals, Aravind Eye Care, Narayana Hrudayalaya, and SRL Ranbaxy, beside the IT trio of TCS, Infosys, and Wipro.

In today’s world, a country is known by its innovative power. India’s potential is being gradually recognized by the world. With all the problems and constraints from an obstructive system of democratic government of a complex alliance, Indian entrepreneurs have moved ahead, and Indian industry has proved its mettle.

Indian companies have found place in Business Week’s list of the world’s most innovative companies. As claimed by BW, ‘this year’s list of the world’s most innovative companies was decided by a respondent pool that was more global than ever’.

In the list of the 20 most innovative companies of Asian region, Tata group is at 4, and Reliance at 8. Apple, Google and Toyota Motors hold top three positions in all the regions.

In the list of the most innovative companies by industry,
· In Autos, Tata Group is at 3 with Toyota and GM at 1 and 2. Tata Group made a remarkable entry in passenger car market with Indica, andIndigo platform, its innovativeness made a mark with ACE, its mini-truck, but its launch of Nano in Auto Expo 2008 stirred the whole auto world.
· In Industrial and manufacturing, Tata Group is at 7 (Arcelor Mittal is at 5).
· In Retail, Reliance Industries is at 9.
· In Energy, Reliance Industries is at 6 and Suzlon Energy at 7.

There are many miles to go, but India is on right track. All the institutions of worth must join in this national endeavour to see that innovativeness and entrepreneurship become the main trait of the country. Can’t with all these achievements the politicians, particularly the leftists, take some lessons?

With some of the reforms such as one related to labour, disinvestments, and freeing some more sectors for FDI, the competition can make Indian enterprises more robust and innovative. Innovation today is not only the means of growth; it is also needed to survive. One is get over the myths to move fast aahead.

But let me end the entry with another successful innovation of India. IPL launched by Lalit Modi of BCCI is that product. Is there any doubt that after Kerry Packer’s successful bid to innovate day and night cricket matches of 50 over, IPL has brought in a product that may be the ultimate case of commercialization and globalization of cricket?
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Two Masters from Aam Adami

Every day morning I pass through the road with the Sai Temple and Shakti Mandir on one side. I stop for a minute on the road itself and try to repeat ‘Shradha’ (devotion, faithfulness) and ‘Saburi’ (patience) – the two words teaching of Sai Baba. One must be devoted to whatever he does. He must also have patience to get at the goal. Can there be any mantra simpler than this?

I keep on seeing the white imposing statue from distance. Many thoughts keep on coming and haunting me. He is Sai Baba of Shirdi. He was from among the Aam Adami, when there were no marketing tool available or used. But in a very short time after his samadhi, he has become so popular among the middle classes of the country. As I understand the number of Sai Temples have come up in almost all towns and cities of the country. People keep on wishing something, after the wish gets fulfilled keep on pouring in the promised cash or jewelry in temple’s ‘hundi’. The main temple is at Shirdi in Maharashtra. It is the second richest temple after Tirupati in Andhra.

As per recent news, the trust of the main shrine wanted to get some sort of share from all the franchise temples. I wish the temple focused on building the good schools and healthcare facilities for the poor in rural India instead of wasting the donation on many odd causes.

A similar saint from east did also impress me intensively. He is Ramakrishan Paramhans, the guru of Vivekanand. Ramakrishan has not become so popular. His power to get all the wishes fulfilled was not made the selling point. And though Ramakrishana Missions are in many towns, those are not rich and grand enough as Sai temples are. Perhaps his disciples never thought on that line. Since my earlier days, a visit to Belur or Dhakhineswar on the bank of river Hooghly gave a lot of peace to me. I could spend hours sitting there, when for sometime I used to live in Bally very near to the temple. Even today, whenever we get a chance, we go there when we are in Kolkata. However, Ramakrishna Mission also has done pioneer work in field of education and healthcare. Rakesh and then Rajesh got their plus two education after school final from RK Mission College at Narendrapur that was considered the best at that time. The institute did impress me whenever I visited it. We still relish the sweet memories and feel morose about our failings of the days.


Anand in Dhakhineswar Temple with Emma

Let me confess I was not religious those days. However, I did take the route of penance negotiated, (?) when the promises got fulfilled. I remember going to Tirupati and putting some money in hundi. And I also took the barefoot journey of Tarkeswar, a distance of more than 24 kms too and that too twice. I don’t remember any of my peers doing that.

I keep on pondering over the two words, ‘Shradha’ and ‘Saburi’. Perhaps this keeps me going and gives me peace. But the rise of these two gurus of very recent past as people’s masters is motivating, as it provides simple solutions.

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Surprisingly Exhilarating India

India’s GDP may grow 9.5% in 2008-09, if we believe the forecast of the Centre for Monitoring Indian Economy CMIE. The capacity additions will drive the surge in growth. Is it also a sycophancy of a sort, as projections by other analysts are pretty low with Lehman Brothers’ figure at 7.6% while HSBC at 7%, and JP Morgan at 7%?

It will be for industrial production and services to come out with some pretty consistent growth to achieve what CMIE predicts, and that is possible with many performing so wonderfully. Gems and jewelry export is growing fast even with all the rupee escalation. Madura Coats is doing well in textile. Many individual companies performing well through cost innovations instead of looking to government for assistance. More and more of the enterprises must learn to perform under difficult circumstances. The export target of $ 200 billion will appear feasible.

Auto sector, particularly the two wheelers, has set the example. Overall export of motorcycles went up to 7.76 lakh in 2007-08 against 5.45 lakh in 2006-07, a 42% rise. Bajaj Auto with its domestic loss of 20% achieved a 62 % increase in export totaling 4.81 lakh. Even TVS did better its export by 41%. Hero Honda remained behind and it was obviously because of the constraint from the collaborator. That’s where being indigenous becomes superior. And the Indian two-wheeler manufacturers are able to do all this against the tough competition from the manufacturing giants of China and Japan. Today’s challenge from strong competition in the face of free trade and globalization can be won only with superior quality, cost innovations and better management skills. And the commercial vehicle manufacturers were not behind. Indian commercial vehicles are outdoing those from Europe, Japan and China. Data from the Society of Indian Automobile Manufacturers (Siam) show India’s exports of commercial vehicles went up by a robust 19.10% during 2007-08 at 58,999 units against 49,537 units recorded in the previous financial year.

Even with all the slowdown in economy, the car sector could achieve a 12% growth in sales with annual figure of 12,03,531 in 2007-08 against 10,76,582 off 2006-07. In car sector, one may notice that the foreign companies such as Maruti Suzuki and Hyundai are leading the export business. Tata Motors and M&M are perhaps too busy in expanding its wing in global market with acquisitions. I do also feel that both are to do a lot of work to get an image of world class quality for its unique products such as Nano or Scorpio.

But many other developments are equally exhilarating. Even almost forgotten sectors are coming up with new ideas. Is it nice to hear that even defence shipyards are trying to get into gears and talking of collaborations with French shipbuilding giant, DCNS (Direction des Constructions Navales Services), for jointly setting up a cutting edge design centre for warships and merchant ships for both the Indian and the global markets? Will it not be great news for power sector that a private company such as L&T is joining hand with $ 63 billion Toshiba Corporation to end the monopoly of BHEL to manufacture turbines for large power plants for the upcoming mega power projects? And Tata is aspiring to get into aircraft manufacturing, while Toyota, the world’s biggest auto-manufacturer has finally decided to get into small car segment and set up the second plant in India.

It is high time when some leaders from Indian industry come with pioneering work to provide a model of manufacturing that gets decentralized up to every rural corner of India without damaging its serenity and simplicity. Without a ‘farming plus’ strategy, the rural India can’t be prosperous enough to be at par with the people of developed nations, nor the double digit GDP growth can be sustained.

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Corporate India’s Doubtful CSR or Affirmative Actions?

Many a times, I wonder if the companies and the association representing them genuinely are concerned about the people’s woe or it shades only crocodile tears when pressed to comment. I am all against reservations. But there are always some jobs that can go to some really financially deprived class.

Some ministers were hell bent on bringing in a reservation for SC/ST in private companies. PM also emphasized rather appealed to do something for the deprived class. Industry’s representatives found a smart way of avoiding commitment on reservation and talked of affirmative actions on the line of American affirmative actions. Industry also agreed to take steps to create employment options for scheduled castes and scheduled tribes. It never wanted that to be legislated or made mandatory.

As reported, the promised affirmative action of the corporate India “hasn’t gone anywhere”. As even the big industrialists were involved, none of the ministers dare to displease them. According to the information known through press, even the group of ministers, formed five years back to look into it, hasn’t gone anywhere. Some says the group followed an approach- “let sleeping dogs lie.”

But I wonder why can’t the industry start some voluntary initiatives on its own under its CSR or philanthropic activities that it keeps on advancing through media.

It is unfortunate that only 579 out of about 7,000 CII members have adopted the self-imposed code. Out of Assocham’s 2,50,000 direct and indirect members, only 50 have signed up the code of conduct inked by CII-Assocham in October 2006. Let the industry understand its dangerous consequences with the changing social awareness. If one day something like food riots start in India, it will affect the industry most. And perhaps that is one of the reasons why small and big corporate houses are going for acquisitions abroad in such a big way.

The industry- almost all associations agreed for creating educational facilities, particularly related to skill development. Even in good old days, say sixties, many companies including Hindustan Motors (HM) where I worked and TELCO (present name Tata Motors) that I kept on visiting since my IIT days, had very good training facilities for apprentices in different trades though mostly those which were needed for the internal requirement of auto manufacturing.

The government thereafter started setting up the industrial training institutes (ITIs). And many companies employed the passing out candidates. It was a good initiative. But then with the slowdown in industry and complacency in the system, the skill standard of the institutes deteriorated. And very soon with the boom in economy today, it is difficult to find skilled persons. The industry faces an acute shortage of trained manpower. Even the construction industry faces today the shortage of skilled masons, plumbers, electricians and carpenters.

The industry in its affirmative action could have certainly taken up the task of skill building in big way from the rural level itself. All middle and high schools throughout the country could have the facility of trade training to build skilled manpower instead of creating a mass of just unskilled menial workers. Instead of providing charity to build dharamsala and temples, the industrialists could have taken of the task of building the institutions starting from the trade schools to engineering colleges. India requires at least 100,000 trade schools.

The Finance Minister has kept on mentioning about the up gradation and adoption of the Industrial Training Institutes by the private companies right from his 2004 budget speech. The industry has adopted only 300 ITIs, and the expected result is still uncertain.

Can one believe a CII report? “In the first year-22,580 candidates from the SC/ST communities (against the target of 10,000) have been trained to make them more employable, and 1,594 candidates are being trained to become entrepreneurs. And, in 2007, 531 scholarships were handed out to students in premier educational institutions.”

Is it not too little and too late too?

Sometimes, I wonder why a state such as Rajasthan could remain poor on human development index with the majority of industrialists and businessmen coming from the state. Should the industrialists be not ashamed of Rajasthan’s rating regarding education and healthcare?

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