Educating India

Posted on August 29, 2007 by indra

PM announced a dream plan to educate and train India on Independence Day from the rampart of historical Red Fort. I wrote about it. He promised 6,000 new high quality schools – one in every block of the country, new colleges in 370 districts where enrolment levels are low, thirty new Central Universities, one in every state that does not have a central university, five new Indian Institutes of Science Education and Research, eight new Indian Institutes of Technology, seven new Indian Institutes of Management, twenty new Indian Institutes of Information Technology, 1600 new industrial training institutes (ITIs) and polytechnics, 10,000 new vocational schools and 50,000 new Skill Development Centres to ensure over 100 lakh students to get vocational training annually – which is a four-fold increase from today’s level.

At the time of Independence, there were 20 universities and 500 colleges in India. In India after 60 years, there are 369 universities and 18,064 colleges now. According to NKC, at least 1,500 new universities would be needed to increase the gross enrolment rate from 10 per cent to 15 per cent by 2015. In number, only 1.05 crore of India’s youth in the age group of 17 to 23 are enrolled in higher education institutes. The planning commission is working on an ambitious programme, involving Rs 2,77,837 crore during the Eleventh Plan (2007-12), for the education sector.

Recently, I received a mail from Murlidhar from USA. He is of my own batch from IIT, Kharagpur and was in HM (Hindustan Motors) also. He was our neighbour too for some years. He wrote:

For a man who attended a prestigious English school, his “gift” of more IITs, IIMs and IISCs in his Independance Day address (to override Supreme Court’s rejection of OBC quota), is a disgrace. Can you imagine England creating several Oxford’s and Cambridge’s, or US creating several “Ivy League” colleges?

IIT, IIM have established themselves as top class institutions. Why would Manmohan Singh want to degrade these? Is winning the election and allowing his coalition partners make money more important than India’s prestige?

I thought of writing to him in support of Manmohan Singh mission. But then when I think back a little, I find myself with few questions. Why have Britishers not created several Cambridges, Americans several Stanford or MIT? Why are we multiplying IITs and IIMs, and for that matter other institutes too? Are these announcements political? Are all IITs having a similar standard? Are not some who remain inferior also getting the advantage of the brand IIT or IIM? Is it not unethically deceiving? Can all the NITs (the former regional engineering colleges) be of the same standard? We are sure that many are no better than an average college of engineering. It is simply unbelievable that with an IIT and IIM in every state and who knows in every district, we are not harming the brand images of the institutes that has been so painfully created.

In good old days, BE College, Sibpur (Calcutta), Jadavpur University, BHU College of Engineering, BITS (Pilani), and Roorkee University were equally or more reputed institutions. Some even remain till date. Why did some of those fail to come up to the standard of IITs? HRD ministry must facilitate the institutes to become world class by removing all hurdles instead of controlling them. It is unfortunate aspect of education sector that it still remains under the license raj.

It is shocking that hardly four institutes/universities of India are in the top 100 best universities of the world. If each of these prestigious institutes mentioned above become a world class institutes by itself, the number of institutes from India in the list of best 100 educational institutes of the world would be more. India must set a target to bring in at least 20 universities/ institutes in the list of best 100 globally.

Many feel that the quality of higher education will improve by allowing foreign universities to come in the country, as it shall bring competition. But politicians are against it. Surprisingly, only two universities from the UK and one from the US have registered their partnerships with homegrown institutions. But that is the official number. The All-India Council for Technical Education (AICTE) claims that as many as 104 FEIs are actually collaborating with our universities and affiliated colleges but without its approval. Why should it not be free and transparent?

Shockingly, according to the Commerce Ministry estimates, 1,60,000 Indian students leave the country every year for foreign university/college education. In money terms it means an annual outgo of $4 billion or Rs 16,220 crore.

Is not the government control in education and reservation policies responsible for the immigration of so huge a number of Indian students to foreign universities, and not all of them to the best universities? Can’t India become a hub for educating the students from all over the world? Will the English not help here too like IT sector? Will it not help India to become a world power through this route, as a person retains his weakness for the institute and country where he gets education?

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China Quality Story

Posted on August 28, 2007 by indra

China quality story is very much in news these days. Today morning when I was talking with Anand I was trying to caution him for not giving any of those poisonous Chinese toys to Emma, our sweet little grand daughter. He laughed and wanted to know if I really believed the American media story. I said, “Unfortunately, Yes.”

Toys are the latest in the long-list of Chinese exports that have come under intense scrutiny in recent months because of safety concerns. Many a stories have appeared in Western media about the harmful toxic chemicals that have been found in products ranging from toothpaste to seafood and pet food ingredients. Are these knee-jerk media reactions or real concerns about the safety of the citizens, or means to make Americans rise against Chinese goods?

The US announced recalls of tens of thousands of Chinese-made children’s products because of lead hazards. The media is full with the list of damages that it can cause to a child. The exposure to lead can cause learning problems, reduced intelligence, hyperactivity and attention deficit disorder. And who will not believe it and be overcautious?

According to another report, Saudi Arabia has removed from shop shelves seven brands of Chinese toothpaste found to have a poisonous chemical in them. As reported on the website of the ministry of trade and industry, ‘tests had shown traces of diethylene glycol, too toxic for food and medicine.’

Some Chinese may be resorting to some unethical practices assuming that it will not come to the notice of the users. As reported, a Beijing factory recycled used chopsticks and sold up to 100,000 pairs a day without any form of disinfections. Officials raided the factory and seized about half a million pairs of recycled disposable bamboo chopsticks and a packaging machine. The owner had sold the recycled chopsticks for 0.04 yuan a pair and made an average of about 1,000 yuan ($130) a day. He had sold 100,000 pairs a day when business was good. How much of this happens in India and how much of that comes to our knowledge?

China has launched a four-month “war” on tainted food, drugs and exports through campaigns to clean up the country’s battered image. Chinese vice-premier Wu Yi wishes to focus on problem products that has corroded and eroded domestic and foreign consumers’ confidence in the “made in China” label and to protect the reputation of Chinese goods and the national image. While it may appear to some as an autocratic, top-down approach, it is bound to make an impact.

Makers of toys for export in Guangdong province will have to undergo ‘quality licensing’ as part of a new inspection system launched this week. The government agencies will keep a closer watch on not only finished products but also on potentially dangerous chemicals and paints.

In Guangzhou, capital of booming Guangdong province in south China, Mayor Zhang Guangning vowed to bankrupt serious violators of food and product safety. I wish the Chinese could emulate the Japanese.

However, I was shocked to read that a 52-year-old businessman, had apparently committed suicide, just days after Mattel blamed his company, Lee Der Industrial, in Foshan, in southern China, for the recall of one million toys coated in toxic lead paint.

The story further confirms how seriously the Chinese take the responsibility of failures, unlike the owners in India. Perhaps the Chinese have learnt and imbibed some values from Japanese (hara-kiri) unlike Indians who are learning everything from the materialistic west.

The reasons for these failures may be many. One may be the intense pressure from the western retailers who go on lowering the cost targets. The second may be the fierce local competition to meet it. Some blame it to the lack of business ethics and a spiritual vacuum. Money by any and all means has become the main aim of life.

While the official stand by the Chinese are different. On one hand, China is on the defensive over the safety of its products, and lashes out at the United States by claiming that American soybean exports contained pesticides, poisonous weeds and dirt. China still claims that a spate of product recalls has been unfair, biased and politically motivated. It also insists, “No country can guarantee their food to be 100% safe, but if one in 100 or even in 1,000 of our products has quality problems, we will deal with it seriously.”

Perhaps, India has been different with its better exposure to quality control techniques through its interactions with Japanese manufacturing systems that builds the quality in the process rather than inspecting it. India has also gone for some laudable achievement as clearly obvious from the number of Deming Prizes that it has grabbed.

Unfortunately, no report from China talked of establishing a better process quality system. China too must go for building in the quality and learn the finer aspects of quality improvements. Many of the Chinese manufacturers must not be knowing of the consequences of adopting some cost cutting tricks.

There may be many such unscrupulous manufacturers in India too who still take advantages of the ignorance and craze of the consumers. The system must detect them and weed them out. India must not get caught napping on quality issue.

Posted in industry, manufacturing | Leave a comment

Booming and Bubbling India- XV

Posted on August 27, 2007 by indra

Left switched on the ‘red’ signage. India is bubbling politically with prospect of a midterm election or of continuing with an inactive minority government. It affects even the overall confidence of industry. It has made the stock market bubbling too. Terrorists have struck Hyderabad testing the depth of India’s Gandhidom.

However, Japanese PM made it up, and said, “By Japan and India coming together in this way, this ‘broader Asia’ will evolve into an immense network spanning the entirety of the Pacific Ocean, incorporating the United States of America and Australia.”

Anand had visited the famous bookshop of Stanford University with Shannon and Emma. Emma thus starts from Stanford. Anand had bought ‘Think India’ and had a long dialogue on India after going through its first chapter. India is now 60. Many opine India arriving at 60. Business Week, Economist, Forbes, and perhaps many cover the arrival. Approximately one million people each year have been pulled up from under the poverty line, in the past decade. Some call it ‘the largest piece of social engineering ever to have happened in the world’.

India is making a big push into small cars. IBM has become the star of India. India is leapfrogging Brazil in sugar production. Tata Motors are bidding for Jaguar. Toyota is launching small cars in India.

India’s economic reform process may be as good as stalled due to differences between the government and its communist allies, but the economy has gained its own momentum and will keep booming and growing robustly.

Industry all set to sustain high growth momentum this fiscal: the current robust industrial sector trend will continue in the coming financial year as well, with growth expected to remain at a high of 9.5 per cent during 2007-08. The IIP grew by 11.7 per cent during April-May 2007, over and above the 10.8 per cent rise in the same period of the previous year.

India Inc in fast lane: A study undertaken to observe the performance of 20 large business houses in India shows that their net earnings for the first quarter of fiscal 2007-08 have increased an impressive 33.40% (over the same period last year) to touch Rs 14,712 crore.

Insurance outsourcing can hit $10 b: According to global offshoring advisory firm Everest Group, IT OUTSOURCING by insurance companies in India could be an $8-10 billion opportunity over the next five years,. The outsourceable functions include systems integration, reengineering, IT infrastructure management, business intelligence solutions and business process outsourcing (BPO). The domestic insurance sector is expected to grow to $60.5 billion by 2010 from the current $10.2 billion. Over 70 million insurance policies would be sold over the next five years and insurance companies would require over 0.5 million agents, besides several thousand operations staff for tasks like claims processing and customer service.

NRI scientist demonstrates new technology to improve computer chip cooling: Suresh Garimella, professor of mechanical engineering at Purdue University has demonstrated a new technology to dramatically improve computer chip cooling using tiny “ionic wind engines” to increase the “heat-transfer coefficient,” or the cooling rate, in chips by as much as 250 per cent.

Indian-Americans develop paper-thin battery: The team, led by noted nanotechnologist Pulickel Ajayan of Rensselaer Polytechnic Institute (RPI), has developed a battery, which could easily be mistaken for a simple sheet of black paper.

India’s Mighty Movers: The emergence of India’s globally ambitious business outsourcing companies such as Infosys (INFY) and Wipro (WIT) and high-profile cross-border mergers such as Tata Steel’s $11.3 billion deal to buy British steelmaker Corus continue to make the country a fascinating business story.

Posco to begin work in Orissa by Oct: Setting at rest speculation on the fate of its Rs 52,000-crore steel project, South Korean giant Posco has decided to begin work on constructing a 12-million-tonne plant in Orissa by October and is expected to become operational by end of 2011 – however, nearly a year behind the original schedule. (As cost of democracy)

Indian BPO exports touch $4.6bn in FY07: India’s (third-party) business process outsourcing (BPO) exports reached $4.6 billion (Rs 20,890 crore) during 2006-07, registering a growth of 47% says Dataquest’s 20th annual survey of the Indian IT Industry.

Cycle makers see window of opportunity: Indian cycle makers are ramping up their export plans to sell more to Europe, taking advantage of EU’s anti-dumping duties on import of cycles from China and Vietnam, the two major competitors of Indian companies.

JSW Steel set to buy 3 US firms: JSW Steel acquires three US companies for nearly Rs 4,000 crore. Sources close to the development said the target companies would be Jindal Enterprises LLC, Jindal United Steel Corp (JUSC) and SAW Pipes USA.

Blackstone buys Gokaldas Exports: Global private equity giant Blackstone Group is acquiring majority control in Gokaldas Exports for nearly Rs 660 crore, in the country’s largest management buyout in the textiles industry. Gokaldas Exports operates through 46 factories predominantly in Karnataka and supplies to global apparel companies like Nike, Adidas, GAP, Tommy Hilfiger and Abercrombie & Fitch.

India second in global M&A deals ranking: India has been ranked second in the global M&A deals this year so far in the Asia-Pacific region, with a total outbound deal value of $13.5 billion (Rs52, 377 crore). According to data complied by global consultancy firm Dealogic, Australia tops the Asia-Pacific cross-border outflow with over 125 deals worth $30 billion, followed by India with a total of 74 foreign acquisitions in the current year so far.

ArcelorMittal plans to vault into top slot in India: ArcelorMittal, the world’s largest steel maker, is looking to double its planned investment in India and build two large plants: a plant each in Orissa and Jharkhand to produce about 10 million tonnes (mt) of steel annually.

Essar to invest Rs20, 000 cr to raise power capacity: Essar Group plans to invest more than Rs20,000 crore over the next five years to scale up power generation capacity to 6,500 MW from about 1,200 MW at present.

BHEL embarks on expansion: The power plant equipment major is investing around Rs 3,200 crore to enable the corporation to supply power generation equipment for over 75,000 Mw every five years to meet the nation’s capacity addition requirements.

Direct tax collections zoom 44.39%: The government announced a 44.39 per cent jump in collection of direct taxes, including corporate and income tax, to Rs 59,210 crore till August 15 over Rs 41,006 crore a year ago.

World Inc sees India attractive for new operations: More corporates from across the world are keen on setting up operations in India, ranked the top destination for investments and acknowledged as being strategically important to them by global businesses, according to a New York Stock Exchange survey of top business leaders representing companies from 24 countries.

Nissin Brakes spends $58 mn in India plant: Nissin Brakes India Pvt Ltd , the Indian joint venture of Japan’s Nissin Kogyo Co Ltd is investing about 2.4 billion rupees ($58 million) in a manufacturing facility in the western state of Rajasthan to tap the fast-growing auto market with an annual capacity to make 200,000 disc brakes for four-wheelers and 800,000 units for two-wheelers.

Siemens likely to double India business by 2010: German engineering giant Siemens plans to double the size of Indian operations in the next three years, riding on strong demand for infrastructure, medical and communication services in one of the world’s fastest growing economies.

Germany’s precision tool firm Walter plans India unit: The Germany-based tooling major Walter AG, one of the leading corporations worldwide in the field of metal processing that develops, manufactures and markets tools with exchangeable carbide tips for metal-cutting, drilling, milling and turning, is planning to set up a manufacturing facility in India.

Japan to make India its manufacturing hub: The Delhi-Mumbai Industrial Corridor (DMIC) project firmed up between New Delhi and Tokyo during the visit of Japanese Prime Minister Shinzo Abe will pass through Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra. It will entail an investment of around $100 billion on infrastructure. “Whatever doubts Japan had for so long, now India is smelling like roses,” said Jagdish N. Bhagwati, an economist and a professor at Columbia University and a fellow at the Council on Foreign Relations. “They want to get in before it is too late.”

India still way ahead of China: Alhough China’s software and services revenue is projected to reach nearly $28 billion by 2010 ($20.6 billion from domestic market and $7.1 billion from exports) growing at 22 per cent annually, India would still be way ahead at an estimated $74 billion.

Rivalry spurs Ambani brothers to new heights: Mukesh and Anil have been jointly named among the world’s 50 most influential people in business by Fortune group’s 2.O magazine.

Indians most mobile banking savvy: One out of every three people in India is ready to switch to another bank if its offers them free mobile banking, states an Asia Pacific survey on mobile banking opportunities

Indian pharma market to triple in 10 yrs: The projected growth would see India become the 10th biggest pharmaceutical market – from number 14 two years ago – by replacing Brazil, Mexico, South Korea and Turkey. Significant expansion of medical infrastructure will account for 20% of the expected growth, followed by greater penetration of health insurance (15%) and a gradual shift in disease profile and adoption of patented products (10%).

HCL to set up 100 training centers: IT major HCL Infosystems plans to set up around 100 Career Development Centres (CDCs) across the country, to train graduates in IT software, hardware, and networking, and will offer short and long-term courses to around 600 graduates (per centre), annually.

Export forum under Telecom Equipment Manufacturing Association: The Union government has set a target of $10 billion (Rs41, 000 crore) for equipment exports by 2012.

A new growth driver: The study, by Robert Jensen, a Harvard University economist, found that as mobile coverage increased in Kerala, fishermen’s incomes increased by 8%, fish prices fell by 4% on average and less wastage was created.

Nokia plans to make India its global export hub: Nokia Corp. plans to make its manufacturing plant in India, now the second-largest market for its handsets, a global hub for exports.

One in 5 now owns a phone: One in every five persons in India now owns a telephone as the total number of subscribers reached 232.87 million by July, led by an addition of whopping eight million mobile subscribers. The tele-density has increased to 20.52% in July 2007 as compared to 19.86 in June 2007, according to regulator TRAI.

Mitsubishi plant in Haldia to triple production by 2009: Mitsubishi Chemical Corporation’s subsidiary will triple production of a key component used in making polyester and PET bottles at its Haldia plant by 2009.

Strong push for nano technology: The Centre would give a strong push for the growth of nano technology, which has potential to lift the quality of life of the poor and has made a budgetary provision of Rs1,000-crore to promote the sector.

NTPC in coal production: NTPC, which has already been allocated eight domestic coal mining blocks, is looking to invest in either Indonesian or Australian coal mines by as early as next year. NTPC, which produces 27 per cent of the country’s total electricity generation, plans to almost double its generating capacity to 50,000 MW by 2012, from the current 27,904 MW.

Reverse brain drain: According to the study, “Intellectual Property, the Immigration Backlog and a Reverse Brain Drain,” many NRIs are increasingly open to returning to their home country creating “the potential for a sizeable reverse brain-drain from the US.”

Auto companies in R&D drive: R&D expenses of six auto companies of Indian origin increased 70% to Rs1, 384 crore in fiscal 2007 compared with Rs443 crore in fiscal 2004. The average R&D expenditure as a percentage of net sales has increased to 2.34% from 1.47% during this period.

SAP to hold first board meet in India: For the first time in its 35 years of existence, SAP — the technology leader in business software solutions — will hold its board meeting in India (New Delhi) from August 27.

L&T plans SEZs to aid engineering, shipyard: Larsen & Toubro (L&T) plans to develop two special economic zones (SEZs) close to its manufacturing facilities in order to take care of future expansion plans.

India out of ‘truly corrupt’ group: According to Forbes, “A few, most notably India, managed to bootstrap themselves (just barely) out of the truly corrupt group, while others, particularly Iran, dug themselves more firmly into that camp.”

And tthe story goes on.

Posted in economy, industry | Leave a comment

A Letter to CM, Bihar

Posted on August 26, 2007 by indra

Dear CM,

Sub: We need a better promotionl ad.

On the Independence Day, I came across one full-page advertisement from your government in Hindi in English language ‘Times of India’, New Delhi edition. Couldn’t your officers make the ad more presentable and rationally acceptable for whomsoever that was addressed? Why should they keep on copying from the older files or from what other states are doing? Many other programmes of many a states may be emulated for the benefits of the people of Bihar.

The ad must carry two aspects of the governance: Firstly it must let the people know what has been achieved in numbers such as kms of roads constructed, number of villages electrified, number of schools and healthcare centers built, kms of irrigation canals and number of water bodies renovated or dug, and similar data during the two years of your government. The second part woul have given the specific plans for the projects to be undertaken and completed during the balance period of your tenure.

It is very prudently put that the proposals for 91 projects with a total investment of Rs 36,408. 596 crore (Why so accurately?) were placed before and accepted by the state industrial development board up to June 2007. In the same breath, the ad also mentions the government approval for the setting up of 15green-field sugar mills with a total capacity of 80,000 TCD. And that will also produce 332MW of electricity by co-generation and 1070 KLDP ethanol simultaneously generating employment of 90,940 ppersons. I wonder if these sugar mills are also in the list of 91 projects mentioned earlier. Are these additional? Many would love to know that.

However, the people will also like to know the status of these 91 projects that also include many engineering, and medical colleges with hospitals. Is a time lapse of two years that has already gone since the list started bulging, is not good enough to show the progress? Are the promoters serious about the projects or did they submit the proposals to take some other benefits for their existing business in Bihar?

I am sure even with total confidence in your sincerity, the well-wishers are skeptical if those projects would ever see the daylight benefiting the people of Bihar. Please get a website set up that provides the status of the major projects undertaken by the state and even the central government to keep the people informed?
I don’t know if you are already having one. If you have, I shall be obliged to know the link.

I am still confident that Bihar will change fast enough for others to be envy.

Indra

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A ‘bloody fool’ did it

Posted on August 25, 2007 by indra

VERGHESE KURIEN ‘MILKMAN OF INDIA’ has narrated an instance from his own professional life recently. That is the way a great man is different. And many in the public sector even today have a lot of such challenges. Why couldn’t HAL with world-class facilities produce LCA or for that matter, any product with a significant global or domestic market till date? Why couldn’t BHEL develop its capacity and globally competitive clean technology to meet even the domestic demands of power equipment? Kurien succeeded and made himself a legendary. India is today the largest producer of milk. And we all know if all the states of the country just emulate his model of milk cooperatives of Gujarat, the life of a lot many people below the poverty line can get improved. Kurien has told this story for TOI.

I remember the time when almost everybody, including experts in the dairy industry, had snubbed our idea of producing milk powder from buffalo milk. Experts, especially from New Zealand, which was selling milk powder in India, held firm that milk powder cannot be produced from buffalo milk. When noted dairyman and director of dairy research in New Zealand Professor William Riddet visited Anand, he told me that he was happy to know that I had made a significant name in the dairy industry at such a young age.

Then he asked me: “But, why are you such a bloody fool? Why are you working on a project that is bound to fail?” I told him that I would make it. He asked me if there was anything on earth that could dissuade me from embarking on a project that was bound to fail and I replied “nothing.”

It was on October 31, 1956 – Sardar Patel’s birthday – that Jawaharlal Nehru came to Anand to inaugurate the Amul dairy. When he was leaving Anand, Morarji Desai told Nehru that many had tried to dissuade me from going ahead with my project to produce milk powder from buffalo milk, for it was never done before. Nehru came towards me, put his hands around me in an embrace and said: “I am glad that India has such people who can get done things that cannot be done.”

We had succeeded in producing milk powder from buffalo milk, just 24 hours before Nehru inaugurated the dairy. It shocked dairy experts in New Zealand. The country did not want India to produce milk powder, as we were a major market for them. Now, India produces 1.65 lakh tonnes of milk powder, much more than what New Zealand produces.

I still remember how I rubbed milk powder on the forehead of dairy expert and my companion HM Dalaya just 24 hours before Nehru’s arrival in Anand.

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Indian Public and Cause-based Protests

Posted on August 23, 2007 by indra

The media report and the public opinion about the left placing its ideology above the country’s interest raise some questions about our democracy and our people.

As reported by most of the national newspapers, the majority of the readers from the masses and intellectuals writing in media want the Indo-US Nuclear to go in fast track. But Leftists wish to sabotage the deal and the damage has already been made.

TOI reports that 92% of the netizens on its website are of opinion that ‘Congress should drop left for the nation’s good.’

Opinion polls reported in TOI are interesting. Kolkata and Kochi, both in the states ruled by the Left, are more strongly with the government and against the Left than any other cities. Support for the deal was at 64% in Kolkata and 65% in Kochi, well above the eight-city average.

Surprisingly, some of the old timers in the leftists, such as Subhas Chakroborty have also talked openly against the misadventure of the Karat-Yachuri alliance against the country. Subhas has been reported saying ‘it’ll be “idiotic” to pull the plug over differences on the Indo-US nuclear deal. Those who are in charge of our party talk big. But they don’t have to share the consequences.’

I wonder when the politically active public quite in large number is against the leftists, why don’t it come out to protest on roads or resort to some innovative methods to show its resentment and displeasure about the leftists’ ideological moves that are against the interest of the country? Are they afraid of a bigger counter protests organized by the official groups of leftists, who are masters in organizing that even on the slightest pretext?

Why can’t the media that can take up some cause like Jessica Lal’s case so vociferously and innovated many ways to highlight the issue, come out in the same way for this cause of N-Deal, if it is so critical for the future of the country?

BJP is opposing the deal, as it didn’t get a chance to take the credit of the deal and it is pleased to see the government falling before its due time not because of it but in spite of it. However, its opposition to Indo-US nuclear deal will prove costly on long run. The party has hardly any future with so much of inner fighting. And even its well-wishers, who were having some sympathy or weakness for it, are getting disenchanted. Why is the political class out to play party-pooper?

However, both these parties- CPM and BJP are cadre based ones. And the cadres consist of mostly opportunists and hooligans. Only party that will get the best out of the fall of the government will be BSP. The country and its people must be ready to welcome Mayawati as PM and the queen of this country in near future. And unfortunately, she has only this single agenda for her party of the ignorants. How can a person otherwise think of erecting massive memorials of her mentor Kansiram, shadowing those of even the father of nation in Delhi and in every district headquarters? What is the message she wishes to give to the people of the country?

Why have people in general stopped protesting against unjustified moves of the political parties that I used to see quite often in good old days?

I never thought of coming back on the political issue so often, but today I couldn’t resist myself. Any deficiency in system hurts me. I feel like protesting against that. One such instance that came to my mind is the number of days the Supreme Court’s bail order for Sanjay Dutta has taken to reach Yerwada jail. Have you noticed this? Is it justified today in a country that expects to be a great IT and knowledge power? Should the people not protest this?

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Indo-US N- deal: National Interest vs. Ideology

Posted on August 22, 2007 by indra

Manmohan Singh government is suddenly in crisis. Leftists have given its warning to stop going any further on nuclear deal with US or face the consequences. The lack of political consensus on nuclear deal with US has already done the damage. Many feel Manmohan Singh and Sonia Gandhi would have been in better position if they had been in constant dialogue with BJP, shaking off their ego, on this issue. How can the other nation take India seriously when its government is facing such a crisis because of the ideology of leftists on whom Sonia depended to run the government and opportunistic maneuvers of the main opposition party that had initiated the breakthrough in Indo-US relations? Even a new government after election, if held, will find it almost impossible to go ahead with the deal unless the electorate brings back Congress and its allies in power in clear majority, which is doubtful. Manmohan and his team certainly did a creditable work to get the deal in place and they deserve credit too. The scientists’ community is for the deal agreed and so are the heads, present and past of Atomic Energy Agency.

The media are agog with the negativity of leftists with many self-explaining headlines: ‘The government appeals to the leftists for not taking any precipating action, but to hear to it on N-deal’. ‘Experts say, left is helping China, and Pakistan’. ‘China is already miffed as India goes ahead with strengthening ties with Japan, Australia, and US’. ‘Experts are against calling off deal as it will isolate India globally’, and if we go by them, ‘the deal is essential to counter China’s might in Asia’. ‘India’s credibility will take big hit if deal is nuked. Interlocutors will have no faith, knowing govt can’t defend pact at home.’ Many columnists have come out with the real story behind the leftists’ insistence to damage the deal. Many claim that the leftists are helping China and Pakistan who would be the happiest if the deal drowns in turbulent political water of India. Let us see what the lead articles of Hindustan Times and Times of India on August 21, 2007, says:

“It is not without significance that the vigorous campaign of the Left parties against the Indo-US agreement and against the growing strategic interactions between India and the US has coincided with the beginning of the Chinese campaign against the so-called ‘quadrilateral strategic interaction’ involving India, Japan, the US and Australia, and the naval exercise with the additional involvement of the Singapore Navy.”- From “The Manchurian candidates” by B.Raman in Hindustan Times

” Sections of the government believe that the Left’s campaign against the Indo-US nuclear deal is inspired by Beijing. China is reportedly unsettled by India’s growing strategic ties with the US and next month’s planned joint naval exercise with the US, Australia, Japan and Singapore in the Bay of Bengal. The Chinese sent a demarche to all participants wanting to know the nature of the exercises. When the Left raised the ante on the Indo-US pact, the Chinese media reported and commented on the events; this was considered a first because the Chinese media hardly ever focuses on India. – Chinese whispers by Rajiv Desai in Times of India

According to all the polls by media, more than 90% of the responses from the people are favouring the deal. How can the politicians or more correctly parliamentarians be so away from the people?
Leftists are anti-America since ages. To many, and me leftists today are nearer to China rather than India. They have been against many national movements in pre-independence era too. The biggest danger today to the nation is from Maoists or Naxals, who work on ideologies evolved from the one of the same leftists. In communists’ states, the Chinese are winning the projects and getting the foothold, even though their quality and efficiency of the equipment are under suspicion.

Let us decide about the first thing first. Between the ideology and national interest, what must come first? Naturally the national interest. But for the leftists, the single reason to oppose nuclear deal is that it will bring India nearer to US. Leftists don’t want that, China does not want that to happen. A close US-India relation will affect China’s bigger game plan to rule the world.

Is there any other alternative today but to go nearer to US through this deal, when all the developed nations including Russia and China are doing that? Will the other nuclear nations be of any significant assistance to India in nuclear programme if US doesn’t sponsor India’s case? Is India strong enough as China is, to stand on its own? Do leftist want India to move nearer to China? Will it be in national interest when we know that China is already surrounding India with its unethical friendship moves and gestures with India’s neighbours? China has all along been supporting and encouraging Pakistan. It is even facilitating the anti-Indian feelings to spread in Myanmar, Bangla Desh and Nepal. It is dumping its goods in the Asian market. It is alluring all the Asian countries by increasing bilateral trades and African countries by aids. It is going after procuring all the energy resources all over the world.

Congress would have understood Leftists before it formed the government with its support. However, as it seems the honeymoon is over. If leftists are equally concerned about the interest of the nation, I and many like me, will not be able to appreciate the leftists move to press for abandoning the nuclear deal that provides an opportunity to remove many years of isolation from the scientific community of the advanced nations. I am sure beside the political aspect of the deal an in-depth study of the legal, scientific and long-term foreign policy aspects require the help from the experts on the subject. Why can’t leftists agree to go by the advices of such a group instead of getting the future of the country decided by a group of people who are essentially politicians who are considered people of below average intelligence by many studies?

As it appear the country is going to have another mid-term poll. The composition of the parliament even after the election will produce only an equally vulnerable government. But will the two national political parties be united in unmasking the real face of leftists who are holding the nation away from becoming a developed nation faster? Leftists as well as regional political parties with local agenda are to go out of the scene or transform significantly. The sooner the people of India realize this, the better it will be for the nation.

Let God save India from leftists, as they don’t believe in God.

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Retail Sector and Inclusive Growth

Posted on August 22, 2007 by indra

It is universally agreed that the agriculture and manufacturing sectors must improve upon its contributions to the country’s GDP. Recently, Narayana Murthy, Chief Mentor of Infosys, speaking at a meeting organised jointly by All India Association of Industries and Young Entrepreneurs’ Society, said, ‘India could use low level of technology in the manufacturing sector to provide job opportunities to a large number of illiterate and semi- literate people in the country as in China.’

How can these low-tech manufacturing enterprises be created in large number? One way out can certainly be if the big business enterprises or MNCs go for procuring components for its plants spread over globally. It can happen if Indian manufacturers compete in cost and quality. Maruti Udyog has shown the way and assisted the setting up of many auto components manufacturers that are today globally competitive and are exporting to many countries now. It can happen in many other sectors too.

The big business houses such as ITC, Reliance, Birla, Tata, Bharati, and 20 others getting into retail sector can help low-tech manufacturing in a big way. The outlets will sell fruit and vegetables, staple foods, stationery, clothing, consumer electronics and other general merchandise. There is a big hope of surge in local manufacturing with entry of these big business houses as well as MNCs such as Wal-Mart in retail business. As Raj Jain, Wal-Mart India Chief said at the launch of the joint venture with Bharati, ‘Wal-Mart sources almost 90% products from local sources.’ China opened FDI in its retail sector. Today Wal-Mart sources $18-25 billion worth of their global requirements from China, it does only about $600 million from India. The joint venture of Wal-Mart with Bharati will certainly expand the Wal-Mart sourcing from India for its global outlets, if local entrepreneurs take initiatives to enter the global market with their products better in quality and price.

If all the big houses joining the bandwagon of retail business decide to develop local sources and assist them to develop and upgrade its products in technology, quality, and cost reduction, the country can have a big surge in manufacturing sector. It is very much possible for Indian manufacturers to compete any country if assisted in right way. I recently came across a story about some toy makers in India who are fighting out well with Chinese and with perhaps better quality. Similar success stories can come for many other commodities such as porcelain and crockery, furniture and fittings or other household accessories. If Wal-Mart declares to source 90% from India, why can’t India big business houses do that to a larger extent? Naturally, they will have to keep a brake on easy import of cheap items from China or other countries without exploring and encouraging the local manufacturers. If they follow this route, it will result in hug growth off low-tech manufacturing and a lot of employment generation.

Farmers will be the other beneficiaries. The retail sector promises to buy fruits, and vegetables directly from the farmers. It may even encourage and assist the farmers with some minimal investments for value additions removing all the middlemen. If the organized sector is serious to help farmers, it shall be paying a better price to the farmers for their produces improving their living standard. Main thrust of the organized sector must be to profit from improving the supply chain efficiency such as the transport cost, waste reduction (presently 35-40% of vegetables and fruits get wasted) through high-tech warehouses, air-conditioned transporting vehicles and better packaging, and self-life improvement through technology input. At least some reports such as one from Bharati’s Field Fresh enterprises in Punjab are very encouraging and raise hope for better days for Indian farmers collaborating with these big houses coming in retail. As reported, retail majors are seeking out direct tie-ups with farmers to source food produce for their outlets at better prices and are also willing to offer services like quality seeds and fertilisers to farmers. Many state governments have agreed for changing policies to allow contract farming to help farmers for getting a better price for their produce. The big business houses getting in retails must also try to come in big way in setting up food processing enterprises that can cut down the huge national waste and help farmers and fruit growers.

Organized retail accounts for only 3% today in India. With its growth, the closer relations of the sector with farmers will further grow. If we go by the industry’s estimate reports, by 2010 the organized business in India will grow to $23-$50 billion, as it is growing at a rate of 26-30% annually. And naturally, it may mean a good share for the local manufacturers as well as farmers, unless the people controlling the sector get unscrupulously greedy and forget about their promise of corporate social responsibilities.

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Powering India-4: Alternative energy- Wind

Posted on August 21, 2007 by indra

India is now the world’s fourth-largest generator of wind energy with an installed capacity of 7,093 MW. In October 2005, India surpassed Denmark to rank fourth in installed wind power capacity after Germany, Spain, and US. In 2006, India installed 1,840 MW of additional capacity. It is also way ahead of China, which will add 5,000 MW only by 2010. The Ministry of New and Renewable Energy pegs India’s potential for harnessing wind energy at 45,000 MW. It targets an addition of close to 2,000 MW per year for the next four to five years.

Tulsi Tanti has become an icon. Today Tulsi Tanti’s Suzlon Energy is the world’s fourth-largest wind turbine maker. With its overseas acquisitions- Hansen and recently Repower, Pune-based Suzlon is growing at a combined annual growth rate (CAGR) of 103% with revenues of Rs 2,500 crore. The Rs 1,530 crore Suzlon Energy, the India’s largest has a 52 per cent market share in the country. Suzlon is sitting on an Rs 13,500 crore order – out of which Rs 1,710 crore is from India alone. The company aims to scale up its equipment output capacity from 2,700 MW to 4,200 MW by 2008. The $4.2 billion (Rs 16,800 crore) Danish major Vestas and Enercon from Germany together make up another 30 per cent.

Many other companies are trying to get into the green energy movement to save mother earth.

US’s GE Energy Financial Services is looking to break into the Indian market. The company’s goal is a $3-billion (Rs 12,000-crore) renewable energy portfolio by 2008 in partnership with experienced Indian wind farm developers. Smaller players such as Pioneer Wincon Systems are also scaling up. New entrants such as Southern Wind Farms and Shriram EPC from Chennai are also putting up manufacturing facilities.

Sterling Infotech has acquired Finnish turbine maker WinWind Oy.

Anil Ambani’s Reliance Capital has picked up stake in wind turbine maker NEPC for Rs 96 crore in 2006.

As reported recently, Nalco plans to enter wind power with Suzlon and will set up the windmills on the Panchpatmali Hills near Damanjodi, from where it currently mines bauxite. The location at a high altitude enhances the chances of getting better volume and velocity of wind. Nalco’s alumina refinery currently requires about 60 mw of power daily, which is being met through in-house generation using coal and waste heat. The proposed wind power project can meet the electricity requirement of the refinery in part or full.

CLP Holdings, Hong Kong’s biggest power utility, will build a $125 million wind farm in Gujarat with a capacity of 100.8 mw in association with Enercon (India).

Roaring 40s Renewable Energy Pty, CLP’s joint venture with Hydro Tasmania, already had signed an agreement with Enercon, a wind turbine manufacturer, to build another wind farm project in Khandke (Maharashtra). The 50.4 mw plant costing $80 million is scheduled to start operating in December.

Interestingly, the early movers such as Bajaj Auto, Ajanta Clocks, and Madras Cement are having wind power at a fixed cost of 50 paise per unit and will continue doing that till the life of the windmills. Can anything be cheaper?

Bajaj Auto’s wind power generation system, installed in 2000 with an investment of Rs 300 crore caters to around 90% of the energy needs of the three of its factories and saves around Rs 25 crore in power costs per year.

Many of India’s power-intensive and polluting industries like cement, textiles and oil refineries use windmills to save on power costs and to earn green points by generating carbon credits. Power majors such as National Thermal Power Corporation in Delhi and Tata Power in Mumbai are also setting up mega projects.

Wind Technology incorporating many innovations has advanced significantly and in some locations, wind becomes competitive without subsidies.

Today wind energy is competitive with coal and gas, and is cheaper than nuclear power. With land available in right locations, one can install and begin operations within three to six months.

Comparing to solar energy, wind power costs Rs 4-5 crore per MW to generate whereas the solar energy generation costs about Rs 30 crore per MW.

Windmills currently generate roughly 1 per cent of total global energy consumption.

Wind energy accounts for 20 per cent of the electricity in Denmark, 9 per cent in Spain and 7 per cent in Germany.

Wind Mills if suitably located can also attract a lot of tourists. India is moving on the right track to use the nature wherever t is possible for harnessing energy.

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Booming and Bubbling India- XIV

Posted on August 20, 2007 by indra

Delhi is bubbling. Leftists are trying to get their pound of flesh. Political maneuvers may save the situation. The government may stay in power. One feels bad, but this is the price of democracy. However, when we went for the movie: ‘Chak De India’ or ‘Gandhi-the father’, the two multiplexes and malls were having house full indicating the economy booming. Forbes in the report ‘India at 60’ lists more billionaires in India than in any other Asian nation.

Indian IT troika fit for Buffett’s portfolio: Standard and Poor’s has included three of the biggest names in the Indian IT space in its latest biannual compilation of the stocks that meet the legendary investor’s portfolio. The American Depositary Receipts of these three IT behemoths have been named alongside global giants Microsoft, Oracle, Ericsson, Cisco Systems, Diageo, China Mobile and SAP.

For 8 of 10 people in Valley, ‘conditions have improved’: The first-ever Indo-Pak poll sponsored by The Indian Express, Dawn News and CNN-IBN and designed by CSDS, public opinion offers greater room for peaceful resolution of the Kashmir dispute than is usually believed.

Rural twist to BPO story: Sai Seva in Andhra village offers solution to cost and attrition worries of firms such as Royal Sundaram, HDFC. The venture was built around the notion that “around 80 lakh educated rural youths are still unemployed and Gartner (a research outfit) said that India could lose 70% of the BPO opportunities to more cost-effective countries by 2010.”

Indians predated Newton ‘discovery’ by 250 years: A little-known school of scholars in South India discovered one of the founding principles of modern mathematics hundreds of years before Sir Isaac Newton, to whom the finding is currently attributed.

Infosys, TCS top corporate reputation index: IT majors Infosys Technologies and Tata Consultancy Services (TCS) have emerged as the most reputed corporate houses in India while Tata Motors, Tata Steel and Hindustan Unilever were tied at the second place, according to the latest Corporate Reputation Index released by global consultancy firm TNS. Maruti Udyog, the largest carmaker in the country, got the third highest number of votes on the index.

IT giants increase overseas hiring: The non-Indian workforce comprised 9.6 per cent of the IT majors’ total workforce in 2006-07, and the number is set to rise. Wipro Technologies hired over 200 college/ business school graduates from the US and Europe in 2006-07. Tata Consultancy Services (TCS) as its long-term strategy is looking at having 15-20 per cent of their workforce from foreign countries. Infosys already has 3 per cent of its workforce made up of foreign nationals, and has seen their numbers grow 28 per cent from fiscal ’05-’06 to ’06-’07.

N-deal opens up investment possibilities worth $40 bn: The Indo-US civil nuclear deal has opened up the possibility of investments worth $40 billion over the next 15 years to step up nuclear power generation, with leading firms like White Westinghouse, General Electric, Rosatom and Siemens unveiling plans to do business with the country.

L&T for megapower: L&T has entered into a joint venture with Mitsubishi Heavy Industries Ltd to set up an Rs750 crore manufacturing facility for super-critical boilers, which will have an annual production capacity of 3,000-4,000MW. L&T is also close to inking a deal with Japan’s leading power-generation equipment manufacturer, Toshiba Corp., to set up a facility for manufacturing super-critical technology turbines in India. The deal may entail an investment of $80 million by the engineering major.

Tata Motors at Pantnagar: Tata Motors Ltd, India’s largest truck maker had received the go-ahead from the Uttarakhand government to start commercial production at its Pantnagar factory. The Pantnagar factory has the capacity to produce 225,000 units a year, and will make both the Ace cargo carrier and its passenger vehicle version, Magic.

Allocation for higher, tech education to treble: The Budget allocation for higher and technical education in the country is set to treble in the 11th Five-Year Plan (2007-2012) with the Planning Commission expected to allocate over Rs 26,000 crore, compared to Rs 8,876 crore in the 10th Five-Year Plan. The commission is targeting a gross enrolment ratio (GER) of 15 per cent by 2015 as against that of 10% in the 10th Five-Year Plan, thus enrolling an additional 8-9 million students in higher education by 2015. The GER in most developed economies is between 40 per cent and 50 per cent. Look at the potential.

Volvo for Engine manufacturing in India: India is one of the locations that Volvo is considering for setting up an engine and transmission plant for the Asian market.

Indian outsourcing heads abroad: Indian information technology and outsourcing firms, which have a reputation for cheap operations, are diverting new orders to places like the Philippines, East Europe and Latin America that offer better pricing and skill sets.

Govt plans four national pharma institutes: The government has decided to set up four national institutes of pharmaceutical education and research (NIPER) to offer masters and doctoral degrees in specialized areas connected with cutting-edge technologies to serve a booming healthcare industry that is facing a severe shortage of human resources at Hyderabad, Ahmedabad, Hajipur (Bihar) and Kolkata that would produce about 1000 post-graduate and doctoral graduates every year.

100% jump in domestic investments: A Reserve Bank of India report has estimated that banks and financial institutions sanctioned 1,054 projects worth Rs 2.83 lakh crore ($70 billion) in 2006-07, more than double the Rs 1.31 lakh crore or $34 billion sanctioned for 812 projects in the previous year. Add the $15 billion that India received as foreign direct investment (FDI) last year; and another $6.6 billion that came in as net foreign institutional investment (FII) during 2006-07. The Rs 2.83 lakh crore would be invested in creating or expanding production facilities till 2011-12. Two-thirds of the investment will go for setting up new capacity, while 27.5% will go into expansion and modernisation of existing facilities.

Auto industry zooms to become small-car hub: In the last five years, annual growth in the passenger vehicle segment has been by 15 per cent, commercial vehicles 26 per cent, two wheelers 13 per cent and three wheelers 15 per cent. The industry expected to attract investment worth $35-40 billion by 2016.

Reliance Retail to create half a million jobs: Reliance Retail Ltd (RRL) would create half-a-million jobs and provide indirect employment to another one million over the next three years.

IBM launches Hindi speech recognition technology: A speech recognition technology for Hindi has been developed by software major IBM which would help less literate and physically challenged persons among the speakers of the language, access information through a variety of applications.

HAL-Canada’s CAE to set up pilot school in B’lore: Hindustan Aeronautics (HAL) has forged a joint venture with Canada’s CAE to set up a $55 million pilot training school in Bangalore and drawn up plans to establish a facility to manufacture multi-role combat jets.

Wi-Fi system at 50 railway stations: RailTel, a subsidiary of the railways is planning to instal Wi-Fi systems at 50 stations as a pilot scheme; and passengers at these stations can access broadband internet facility using laptops and other Wi-Fi enabled devices.

30,000 MW to be added using imported N-fuel: The Department of Atomic Energy (DAE) plans to add 30,000 MW of power based on imported nuclear fuel in the near future.

Reva gears up for global electric-car market: Some 2,000 of these zero-polluting city commuters have been put on the roads in India and Europe, including 600 in London, in the six years since Reva Electric Car Co. turned commercial.

Global hotels to mushroom in India: A dozen global chains – including the Hilton, Accor, Marriott International, Berggruen Hotels, Cabana Hotels, Premier Travel Inn (PTI) and InterContinental Hotels group – has announced plans to set up over 350 five-star, four-star and budget hotels and 50 villas that would roughly translate into 65,000 additional hotel rooms. Foreign tourist arrivals rose to 4.43 million last year from 3.92 million in 2005.

VIP to make hard luggage for Delsey: VIP Industries has signed an agreement with the world’s second largest luggage company Delsey making the Indian company the sole manufacturer for the French major’s global hard luggage range.

Delhi-Mumbai corridor involving $90 bn: The government today approved the first phase of the ambitious Delhi-Mumbai Industrial Corridor (DMIC) project, which envisages a total investment of over $90 billion during the next decade, with assistance from Japan.

Transport sector is shifting to the fast lane: At over 33 lakh km, India has the second largest road network in the world. Its 63,000 km long railway network is the most extensive in Asia, the second largest under a single management in the world. Aircraft manufacturers say it has a potential to add 1,100 more jets worth over $105 billion over the next 20 years.

Move for 8 more IITs, 7 IIMs: Planning Commission has proposed a seven-year special plan (2007-14) which includes setting up eight new IITs, seven new IIMs, 20 NITs, 20 IIITs and 50 centres for training and research in frontier areas. Prime Minister Manmohan Singh promised on August 15 that 1,600 new industrial training institutes, 10,000 vocational schools and 50,000 skill development centres would be set up under the mission to supply trained workforce.

99 TV channels, 175 FM stations more in 2007: Ninty-nine new television channels and 175 FM radio stations are expected to be launched this year. Ninety-three private satellite television channels have been permitted to uplink from India so far.

TCS close to bagging $1.5b outsourcing contract: India’s leading IT services provider, Tata Consultancy Services (TCS), is closer to getting an approximately $1.5 billion (around Rs 6,000 crore) outsourcing contract with the UK-based Prudential Insurance.

Undersea restaurant: The Hyderabad-based Oceanpark Group, which is into real estate and entertainment business, plans to set up an undersea restaurant near Visakhapatnam.

Timken to expand: Timken India plans to expand its operations in the country by increasing its capacities at its plant in Jamshedpur, creating new capacity at a greenfield facility in the Chennai special economic zone (SEZ). The company’s $27 million investment in the Chennai plant will mainly support the demand for high-end bearings from Timken’s global clients.

Dabbawalas eye consultancy biz: The Mumbai-based dabbawalas (literally “box-men”), best known for a high six sigma performance rating by management guru C K Prahalad, now are all set to offer consultancy services on logistics management as a separate revenue stream.

FDI inflows to treble to $11.4 bn: Foreign Direct Investment inflows into India more than trebled to $11.4 billion in the first six months of 2007 as companies such as UK’s Vodafone poured funds to tap the world’s second-fastest growing economy.

Indian toys to breathe fire at Chinese dragon: At the peak of the dragon onslaught – 1999-2003 – India was importing almost 1.2 million (12 lakh) of these from China every week. Today, it’s down to zero; they are all made in India now. Whre there is a will,there is a way. It is happening when the Chineses toys are in news for bad reasons.

And the boom story goes on.

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